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    <VOL>91</VOL>
    <NO>138</NO>
    <DATE>Tuesday, July 21, 2026</DATE>
    <UNITNAME>Contents</UNITNAME>
    <CNTNTS>
        <AGCY>
            <EAR>
                Centers Disease
                <PRTPAGE P="iii"/>
            </EAR>
            <HD>Centers for Disease Control and Prevention</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Advisory Board on Radiation and Worker Health, Subcommittee for Procedure Reviews, National Institute for Occupational Safety and Health, </SJDOC>
                    <PGS>45817-45818</PGS>
                    <FRDOCBP>2026-14661</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Centers Medicare</EAR>
            <HD>Centers for Medicare &amp; Medicaid Services</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Patient Protection and Affordable Care Act, HHS Notice of Benefit and Payment Parameters for 2027; and Basic Health Program; Correction, </DOC>
                    <PGS>45647-45649</PGS>
                    <FRDOCBP>2026-14709</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>45818-45820</PGS>
                    <FRDOCBP>2026-14699</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Children</EAR>
            <HD>Children and Families Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Temporary Assistance for Needy Families Financial Report, </SJDOC>
                    <PGS>45820</PGS>
                    <FRDOCBP>2026-14619</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Coast Guard</EAR>
            <HD>Coast Guard</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Safety Zone:</SJ>
                <SJDENT>
                    <SJDOC>Outer Harbor, Buffalo, NY, </SJDOC>
                    <PGS>45646-45647</PGS>
                    <FRDOCBP>2026-14644</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Pier 66, Elliott Bay, Seattle, WA, </SJDOC>
                    <PGS>45645-45646</PGS>
                    <FRDOCBP>2026-14647</FRDOCBP>
                </SJDENT>
                <SJ>Special Local Regulation:</SJ>
                <SJDENT>
                    <SJDOC>Marine Events within the Captain of the Port Charleston, </SJDOC>
                    <PGS>45644-45645</PGS>
                    <FRDOCBP>2026-14645</FRDOCBP>
                      
                    <FRDOCBP>2026-14648</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Commerce</EAR>
            <HD>Commerce Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign-Trade Zones Board</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>
        </AGCY>
        <AGCY>
            <EAR>Commodity Futures</EAR>
            <HD>Commodity Futures Trading Commission</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Order Providing Exemptive Relief to Facilitate Listing of Cash-Settled Futures on Individual Equity Securities, </DOC>
                    <PGS>45640-45644</PGS>
                    <FRDOCBP>2026-14635</FRDOCBP>
                </DOCENT>
                <SJ>Order:</SJ>
                <SJDENT>
                    <SJDOC>Sunsetting Certain Large Trader Reporting Requirements for Physical Commodity Swaps, </SJDOC>
                    <PGS>45638-45640</PGS>
                    <FRDOCBP>2026-14710</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Agricultural Advisory Committee, </SJDOC>
                    <PGS>45795</PGS>
                    <FRDOCBP>2026-14675</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Consumer Product</EAR>
            <HD>Consumer Product Safety Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Commission Agenda and Priorities, </DOC>
                    <PGS>45795-45796</PGS>
                    <FRDOCBP>2026-14700</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Defense Department</EAR>
            <HD>Defense Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>45796, 45798</PGS>
                    <FRDOCBP>2026-14656</FRDOCBP>
                      
                    <FRDOCBP>2026-14657</FRDOCBP>
                </DOCENT>
                <SJ>Charter Amendments, Establishments, Renewals and Terminations:</SJ>
                <SJDENT>
                    <SJDOC>Board of Visitors, National Defense University, </SJDOC>
                    <PGS>45796-45798</PGS>
                    <FRDOCBP>2026-14677</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>Federal Energy Regulatory Commission</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Environmental Management Site-Specific Advisory Board, Paducah, </SJDOC>
                    <PGS>45798-45799</PGS>
                    <FRDOCBP>2026-14658</FRDOCBP>
                </SJDENT>
                <SJ>Request for Information:</SJ>
                <SJDENT>
                    <SJDOC>Domestic Reuse and Repurposing of Savannah River Site Heavy Water Inventory, </SJDOC>
                    <PGS>45799-45801</PGS>
                    <FRDOCBP>2026-14659</FRDOCBP>
                </SJDENT>
            </CAT>
        </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>45801-45802</PGS>
                    <FRDOCBP>2026-14660</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Aviation</EAR>
            <HD>Federal Aviation Administration</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Airspace Designations and Reporting Points:</SJ>
                <SJDENT>
                    <SJDOC>Mountain Home, TX; Withdrawal, </SJDOC>
                    <PGS>45739</PGS>
                    <FRDOCBP>2026-14668</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Requests for Nominations:</SJ>
                <SJDENT>
                    <SJDOC>Bessie Coleman Women in Aviation Advisory Committee, </SJDOC>
                    <PGS>45873-45874</PGS>
                    <FRDOCBP>2026-14617</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Communications</EAR>
            <HD>Federal Communications Commission</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Review of the Commission's Assessment and Collection of Regulatory Fees for Fiscal Year 2025, </DOC>
                    <PGS>45649-45653</PGS>
                    <FRDOCBP>2026-14673</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>45813-45815</PGS>
                    <FRDOCBP>2026-14674</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Energy</EAR>
            <HD>Federal Energy Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>45806-45809</PGS>
                    <FRDOCBP>2026-14684</FRDOCBP>
                </DOCENT>
                <SJ>Application:</SJ>
                <SJDENT>
                    <SJDOC>ETC Tiger Pipeline, LLC, </SJDOC>
                    <PGS>45811-45813</PGS>
                    <FRDOCBP>2026-14686</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Combined Filings, </DOC>
                    <PGS>45805-45806, 45809-45811, 45813</PGS>
                    <FRDOCBP>2026-14688</FRDOCBP>
                      
                    <FRDOCBP>2026-14689</FRDOCBP>
                      
                    <FRDOCBP>2026-14690</FRDOCBP>
                </DOCENT>
                <SJ>Environmental Issues:</SJ>
                <SJDENT>
                    <SJDOC>Tennessee Gas Pipeline Co., LLC, Proposed South Texas Enhancement Project, </SJDOC>
                    <PGS>45803-45805</PGS>
                    <FRDOCBP>2026-14687</FRDOCBP>
                </SJDENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>PJM Governance and Stakeholder Reforms; Third Supplemental Notice of Commission-Led Technical Conference, </SJDOC>
                    <PGS>45802-45803</PGS>
                    <FRDOCBP>2026-14691</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Order Adopting Categorical Exclusions from Tennessee Valley Authority, </DOC>
                    <PGS>45806</PGS>
                    <FRDOCBP>2026-14685</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Maritime</EAR>
            <HD>Federal Maritime Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agreements Filed, </DOC>
                    <PGS>45815</PGS>
                    <FRDOCBP>2026-14678</FRDOCBP>
                </DOCENT>
                <SJ>Complaint:</SJ>
                <SJDENT>
                    <SJDOC>MAC Industries Inc. dba MAC Container Line, Complainant v. COSCO Shipping Lines Co., Ltd., COSCO Shipping Lines (North America) Inc., and COSCO Shipping Lines (India) Private, Respondents, </SJDOC>
                    <PGS>45815</PGS>
                    <FRDOCBP>2026-14646</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Federal Motor
                <PRTPAGE P="iv"/>
            </EAR>
            <HD>Federal Motor Carrier Safety Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>General Technical, Organizational, Conforming, and Correcting Amendments to the Federal Motor Carrier Safety Regulations, </DOC>
                    <PGS>45653-45662</PGS>
                    <FRDOCBP>2026-14701</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Reserve</EAR>
            <HD>Federal Reserve System</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Change in Bank Control:</SJ>
                <SJDENT>
                    <SJDOC>Acquisitions of Shares of a Bank or Bank Holding Company, </SJDOC>
                    <PGS>45815-45816</PGS>
                    <FRDOCBP>2026-14669</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Trade</EAR>
            <HD>Federal Trade Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Granting of Requests for Early Termination of the Waiting Period under the Premerger Notification Rules, </DOC>
                    <PGS>45816-45817</PGS>
                    <FRDOCBP>2026-14664</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Fish</EAR>
            <HD>Fish and Wildlife Service</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Endangered and Threatened Species:</SJ>
                <SJDENT>
                    <SJDOC>Regulations for Designating Critical Habitat, </SJDOC>
                    <PGS>45662-45683</PGS>
                    <FRDOCBP>2026-14629</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Regulations Pertaining to Endangered and Threatened Wildlife and Plants, </SJDOC>
                    <PGS>45723-45736</PGS>
                    <FRDOCBP>2026-14633</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Status for Florida Keys Mole Skink, </SJDOC>
                    <PGS>45683-45697</PGS>
                    <FRDOCBP>2026-14636</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Status for Key Ring-Necked Snake and Rim Rock Crowned Snake, </SJDOC>
                    <PGS>45697-45723</PGS>
                    <FRDOCBP>2026-14637</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Endangered and Threatened Species:</SJ>
                <SJDENT>
                    <SJDOC>12-Month Finding for the San Francisco Estuary Distinct Population Segment of White Sturgeon, </SJDOC>
                    <PGS>45750-45764</PGS>
                    <FRDOCBP>2026-14638</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Permits; Applications, Issuances, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Incidental Take and Proposed Habitat Conservation Plan for Los Angeles County Sanitation Districts Joint Outfall J Unit 1E Trunk Sewer Rehabilitation Project, City of Rancho Palos Verdes, CA; Categorical Exclusion, </SJDOC>
                    <PGS>45824-45826</PGS>
                    <FRDOCBP>2026-14680</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Food and Drug</EAR>
            <HD>Food and Drug Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Information:</SJ>
                <SJDENT>
                    <SJDOC>Expedited Investigational New Drug Pilot Program; Extension of the Comment Period, </SJDOC>
                    <PGS>45820-45821</PGS>
                    <FRDOCBP>2026-14672</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Foreign Trade</EAR>
            <HD>Foreign-Trade Zones Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Proposed Production Activity:</SJ>
                <SJDENT>
                    <SJDOC>Foreign-Trade Zone 202, PolyPeptide Laboratories Inc., Torrance, CA, </SJDOC>
                    <PGS>45766</PGS>
                    <FRDOCBP>2026-14692</FRDOCBP>
                </SJDENT>
                <SJ>Subzone Status; Approval:</SJ>
                <SJDENT>
                    <SJDOC>Pratt and Whitney Engine Services, Inc.; Bridgeport, WV, </SJDOC>
                    <PGS>45766</PGS>
                    <FRDOCBP>2026-14693</FRDOCBP>
                </SJDENT>
            </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>Food and Drug Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Health Resources and Services Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Institutes of Health</P>
            </SEE>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Patient Protection and Affordable Care Act, HHS Notice of Benefit and Payment Parameters for 2027; and Basic Health Program; Correction, </DOC>
                    <PGS>45647-45649</PGS>
                    <FRDOCBP>2026-14709</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Health Resources</EAR>
            <HD>Health Resources and Services Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Charter Amendments, Establishments, Renewals and Terminations:</SJ>
                <SJDENT>
                    <SJDOC>Advisory Commission on Childhood Vaccines, </SJDOC>
                    <PGS>45821-45822</PGS>
                    <FRDOCBP>2026-14649</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Homeland</EAR>
            <HD>Homeland Security Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Coast Guard</P>
            </SEE>
            <CAT>
                <HD>RULES</HD>
                <DOCENT>
                    <DOC>Immigration Fees and Related Procedures Required by Reconciliation Bill; Correction, </DOC>
                    <PGS>45637-45638</PGS>
                    <FRDOCBP>2026-14698</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Determination Pursuant to Section 102 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, as Amended, </DOC>
                    <PGS>45823-45824</PGS>
                    <FRDOCBP>2026-14604</FRDOCBP>
                </DOCENT>
            </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>Reclamation Bureau</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>International Trade Adm</EAR>
            <HD>International Trade Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Antidumping or Countervailing Duty Investigations, Orders, or Reviews:</SJ>
                <SJDENT>
                    <SJDOC>Certain Carbon and Alloy Steel Cut-to-Length Plate from France, </SJDOC>
                    <PGS>45791-45793</PGS>
                    <FRDOCBP>2026-14628</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Hardwood and Decorative Plywood from Indonesia, </SJDOC>
                    <PGS>45788-45791</PGS>
                    <FRDOCBP>2026-14609</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Hardwood and Decorative Plywood from the Socialist Republic of Vietnam, </SJDOC>
                    <PGS>45770-45774</PGS>
                    <FRDOCBP>2026-14613</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Harwood and Decorative Plywood from the People's Republic of China, </SJDOC>
                    <PGS>45766-45770</PGS>
                    <FRDOCBP>2026-14611</FRDOCBP>
                </SJDENT>
                <SJ>Sales at Less Than Fair Value; Determinations, Investigations, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Hardwood and Decorative Plywood from Indonesia, </SJDOC>
                    <PGS>45774-45778</PGS>
                    <FRDOCBP>2026-14612</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Hardwood and Decorative Plywood from the People's Republic of China, </SJDOC>
                    <PGS>45778-45782</PGS>
                    <FRDOCBP>2026-14610</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Hardwood and Decorative Plywood from the Socialist Republic of Vietnam, </SJDOC>
                    <PGS>45782-45787</PGS>
                    <FRDOCBP>2026-14614</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>International Trade Com</EAR>
            <HD>International Trade Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Complaint, </DOC>
                    <PGS>45827-45828</PGS>
                    <FRDOCBP>2026-14681</FRDOCBP>
                </DOCENT>
                <SJ>Investigations; Determinations, Modifications, and Rulings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Certain Nanolaminate Alloy Coated Metal Parts and Products Containing Same, </SJDOC>
                    <PGS>45828-45829</PGS>
                    <FRDOCBP>2026-14639</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>NASA</EAR>
            <HD>National Aeronautics and Space Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>NASA Assurance of Civil Rights Compliance, </SJDOC>
                    <PGS>45829</PGS>
                    <FRDOCBP>2026-14615</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Privacy Act; Systems of Records, </DOC>
                    <PGS>45829-45832</PGS>
                    <FRDOCBP>2026-14603</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Council</EAR>
            <HD>National Council on Disability</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>45832-45833</PGS>
                    <FRDOCBP>2026-14618</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Highway</EAR>
            <HD>National Highway Traffic Safety Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Consumer Information Regulations (Sections 103 and 105), </SJDOC>
                    <PGS>45875-45876</PGS>
                    <FRDOCBP>2026-14641</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Retrofit Air Bag Switches, </SJDOC>
                    <PGS>45874-45875</PGS>
                    <FRDOCBP>2026-14642</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                National Institute
                <PRTPAGE P="v"/>
            </EAR>
            <HD>National Institutes of Health</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>National Institute of Neurological Disorders and Stroke, </SJDOC>
                    <PGS>45822-45823</PGS>
                    <FRDOCBP>2026-14666</FRDOCBP>
                      
                    <FRDOCBP>2026-14667</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Oceanic</EAR>
            <HD>National Oceanic and Atmospheric Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Fisheries of the Exclusive Economic Zone off Alaska:</SJ>
                <SJDENT>
                    <SJDOC>Pacific Cod by Catcher/Processors Using Trawl Gear in the Bering Sea and Aleutian Islands Management Area, </SJDOC>
                    <PGS>45737-45738</PGS>
                    <FRDOCBP>2026-14671</FRDOCBP>
                </SJDENT>
                <SJ>Fisheries of the Northeastern United States:</SJ>
                <SJDENT>
                    <SJDOC>Summer Flounder Fishery; Quota Transfer from North Carolina to Massachusetts, </SJDOC>
                    <PGS>45737</PGS>
                    <FRDOCBP>2026-14697</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Fisheries off West Coast States:</SJ>
                <SJDENT>
                    <SJDOC>Magnuson-Stevens Act Provisions; Pacific Coast Groundfish Fishery; Pacific Coast Groundfish Fishery Management Plan; Amendment 38; 2027-28 Biennial Specifications and Management Measures, </SJDOC>
                    <PGS>45764-45765</PGS>
                    <FRDOCBP>2026-14694</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Basic Requirements for Special Exception Permits and Authorizations to Take, Import, and Export Marine Mammals, etc., </SJDOC>
                    <PGS>45793-45795</PGS>
                    <FRDOCBP>2026-14643</FRDOCBP>
                </SJDENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Pacific Fishery Management Council, </SJDOC>
                    <PGS>45793</PGS>
                    <FRDOCBP>2026-14682</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Nuclear Regulatory</EAR>
            <HD>Nuclear Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Environmental Assessments; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>DISA Technologies, Inc.; Finding of No Significant Impact, </SJDOC>
                    <PGS>45840-45842</PGS>
                    <FRDOCBP>2026-14653</FRDOCBP>
                </SJDENT>
                <SJ>Facility Operating and Combined Licenses:</SJ>
                <SJDENT>
                    <SJDOC>Applications and Amendments Involving Proposed No Significant Hazards Considerations, etc., </SJDOC>
                    <PGS>45833-45839</PGS>
                    <FRDOCBP>2026-14652</FRDOCBP>
                </SJDENT>
                <SJ>Regulatory Analysis Guidelines;</SJ>
                <SJDENT>
                    <SJDOC>Regulatory Analysis Technical Evaluation Handbook; Withdrawal and Resolution of Public Comments, </SJDOC>
                    <PGS>45833</PGS>
                    <FRDOCBP>2026-14634</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Pension Benefit</EAR>
            <HD>Pension Benefit Guaranty Corporation</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Penalties for Failure to Provide Certain Notices or Other Material Information, </DOC>
                    <PGS>45739-45750</PGS>
                    <FRDOCBP>2026-14627</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Postal Regulatory</EAR>
            <HD>Postal Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>New Postal Products, </DOC>
                    <PGS>45842-45843</PGS>
                    <FRDOCBP>2026-14676</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Postal Service</EAR>
            <HD>Postal Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>International Product Change:</SJ>
                <SJDENT>
                    <SJDOC>Priority Mail Express International, Priority Mail International and First-Class Package International Service Agreement, </SJDOC>
                    <PGS>45843</PGS>
                    <FRDOCBP>2026-14695</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Reclamation</EAR>
            <HD>Reclamation Bureau</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Glen Canyon Dam Adaptive Management Work Group, </SJDOC>
                    <PGS>45826-45827</PGS>
                    <FRDOCBP>2026-14650</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Securities</EAR>
            <HD>Securities and Exchange Commission</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Electronic Delivery of Information under the Federal Securities Laws, </DOC>
                    <PGS>45884-45989</PGS>
                    <FRDOCBP>2026-14679</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>45846-45848, 45871</PGS>
                    <FRDOCBP>2026-14630</FRDOCBP>
                      
                    <FRDOCBP>2026-14631</FRDOCBP>
                      
                    <FRDOCBP>2026-14632</FRDOCBP>
                </DOCENT>
                <SJ>Application:</SJ>
                <SJDENT>
                    <SJDOC>360 Funds and M3Sixty Capital, LLC, </SJDOC>
                    <PGS>45870-45871</PGS>
                    <FRDOCBP>2026-14616</FRDOCBP>
                </SJDENT>
                <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
                <SJDENT>
                    <SJDOC>24X National Exchange LLC, </SJDOC>
                    <PGS>45851-45854</PGS>
                    <FRDOCBP>2026-14622</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe Exchange, Inc., </SJDOC>
                    <PGS>45856-45861</PGS>
                    <FRDOCBP>2026-14625</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Financial Industry Regulatory Authority, Inc., </SJDOC>
                    <PGS>45862-45866</PGS>
                    <FRDOCBP>2026-14621</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>ICE Clear Credit LLC, </SJDOC>
                    <PGS>45843-45846</PGS>
                    <FRDOCBP>2026-14626</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>LCH SA, </SJDOC>
                    <PGS>45854-45856</PGS>
                    <FRDOCBP>2026-14624</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Texas Stock Exchange LLC, </SJDOC>
                    <PGS>45866-45870</PGS>
                    <FRDOCBP>2026-14620</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>The Options Clearing Corp., </SJDOC>
                    <PGS>45848-45851</PGS>
                    <FRDOCBP>2026-14623</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Small Business</EAR>
            <HD>Small Business Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Disaster Declaration:</SJ>
                <SJDENT>
                    <SJDOC>Missouri, </SJDOC>
                    <PGS>45871-45872</PGS>
                    <FRDOCBP>2026-14606</FRDOCBP>
                </SJDENT>
                <SJ>Small Business Investment Company Program:</SJ>
                <SJDENT>
                    <SJDOC>Model Form of Agreement for Limited Partnership Small Business Investment Companies, </SJDOC>
                    <PGS>45872-45873</PGS>
                    <FRDOCBP>2026-14696</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>National Highway Traffic Safety Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Veteran Affairs</EAR>
            <HD>Veterans Affairs Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Charter Amendments, Establishments, Renewals and Terminations:</SJ>
                <SJDENT>
                    <SJDOC>National Academic Affiliations Council, </SJDOC>
                    <PGS>45876-45878</PGS>
                    <FRDOCBP>2026-14651</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Privacy Act; Systems of Records, </DOC>
                    <PGS>45878-45882</PGS>
                    <FRDOCBP>2026-14662</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <PTS>
            <HD SOURCE="HED">Separate Parts In This Issue</HD>
            <HD>Part II</HD>
            <DOCENT>
                <DOC>Securities and Exchange Commission, </DOC>
                <PGS>45884-45989</PGS>
                <FRDOCBP>2026-14679</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>91</VOL>
    <NO>138</NO>
    <DATE>Tuesday, July 21, 2026</DATE>
    <UNITNAME>Rules and Regulations</UNITNAME>
    <RULES>
        <RULE>
            <PREAMB>
                <PRTPAGE P="45637"/>
                <AGENCY TYPE="F">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <CFR>8 CFR Part 208</CFR>
                <DEPDOC>[CIS No. 2841-26; DHS Docket No. USCIS-2026-0133]</DEPDOC>
                <RIN>RIN 1615-AD09</RIN>
                <SUBJECT>USCIS Immigration Fees and Related Procedures Required by H.R.1 Reconciliation Bill; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Citizenship and Immigration Services (USCIS), Department of Homeland Security (DHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Correcting amendment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This document corrects the interim final rule (IFR) that published in the 
                        <E T="04">Federal Register</E>
                         on April 29, 2026. The IFR codified certain immigration fees and other provisions required by the One Big Beautiful Bill Act (H.R. 1) and amended USCIS regulations governing asylum and annual asylum fees, the new Form I-94 fee requirement, the validity period for certain types of employment authorization, and the retention of the Form I-589 filing fee for every application. This document will restore regulatory language that was unintentionally removed in the April 29, 2026 IFR.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective July 21, 2026, and applicable as of May 29, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Office of Policy and Strategy, U.S. Citizenship and Immigration Services, Department of Homeland Security, 5900 Capital Gateway Drive, Camp Springs, MD 20746; telephone 240-721-3000 (this is not a toll-free number).</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Need for Correction</HD>
                <P>
                    On April 29, 2026, DHS published an IFR titled 
                    <E T="03">USCIS Immigration Fees and Related Procedures Required by H.R. 1 Reconciliation Bill.</E>
                     91 FR 22952. The IFR codified: (1) the Form I-94 fee requirement set forth in 8 U.S.C. 1807 as it applies to USCIS; (2) the Annual Asylum Fee (AAF) requirement in 8 U.S.C. 1808, including consequences for failure to pay the AAF and limitations related to employment authorization required by 8 U.S.C. 1810(b); (3) the requirement that every asylum application include the fee required by 8 U.S.C. 1802 at filing regardless of whether the application is rejected, and is not refundable; and (4) the H.R. 1 limits on the validity of Temporary Protected Status (TPS) employment authorization required by 8 U.S.C. 1803(c) and 8 U.S.C. 1811(a).
                </P>
                <P>This document corrects an inadvertently omitted provision in the regulatory text at 8 CFR 208.7 regarding the processing timeframe for initial applications for employment authorization under 8 CFR 274a.12(c)(8). Before the IFR, 8 CFR 208.7(a)(1) provided, among other things, that “[i]f the asylum application is not so denied, [USCIS] shall have 30 days from the date of filing of the request employment authorization to grant or deny that application, except that no employment authorization shall be issued to an asylum applicant prior to the expiration of the 180-day period following the filing of the asylum application filed on or after April 1, 1997.”</P>
                <P>
                    The IFR revised and reformatted the regulatory text at 8 CFR 208.7(a)(1). As part of those revisions, DHS inadvertently did not include the final sentence in 8 CFR 208.7(a)(1) and as a result removed the 30-day processing timeframe for initial (c)(8) employment authorization applications. Therefore, this document corrects the regulatory text, 8 CFR 208.7(a)(1) to restore the 30-day processing timeframe for initial EAD applications based on a pending asylum application by adding a new paragraph to maintain the missing sentence.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         On February 23, 2026, DHS published a Notice of Proposed Rulemaking that proposed numerous changes related to employment authorization based on a pending asylum application. 91 FR 8616 (Feb. 23, 2026). That rule proposed to extend the current 30-day processing timeframe to 180 days for EAD applications received on or after the effective date of a future final rule on the same topic. 91 FR 8618, 8655-57. The comment period for that proposed rule ended on April 24, 2026. USCIS is reviewing the comments received in response and will consider whether to finalize the proposed changes to the processing timeline in a future rule. Neither the error in the April 29, 2026 IFR nor this correction notice are related to that regulatory change under consideration and instead simply maintain the current regulatory text while DHS considers the long-term policy.
                    </P>
                </FTNT>
                <P>Because the IFR provides that failure to pay the Annual Asylum Fee (AAF) results in rejection of the pending Form I-589, DHS is adding “rejected” to the 8 CFR 208.7(a)(1)(v) language so that the regulation expressly covers both denials and rejections of asylum applications. This ensures that any (c)(8) employment authorization application filed after an asylum application has been denied or rejected is itself rejected, and any (c)(8) application still pending when the asylum application is denied or rejected is denied, thereby aligning employment authorization consequences with the new AAF rejection mechanism and with 8 U.S.C. 1810(b).</P>
                <P>This correction is applicable as if DHS had included this provision in the IFR that published on April 29, 2026. That rule had an effective date of May 29, 2026. Accordingly, the correction is applicable as of May 29, 2026, at 12 a.m. Eastern Time. In other words, DHS will apply the corrected IFR to applications pending on, or filed on or after, May 29, 2026; DHS has continued to prioritize adjudicative resources for initial (c)(8)-based EAD applications accordingly; and there will not be a gap in application of the 30-day processing timeline to asylum applicants seeking EADs under 8 CFR 208.7(a).</P>
                <HD SOURCE="HD1">II. Administrative Procedure Act</HD>
                <P>
                    Section 553(b) of the Administrative Procedure Act (APA) generally requires agencies to publish a notice of proposed rulemaking in the 
                    <E T="04">Federal Register</E>
                     to provide a period for public comment before the provisions of a rule take effect. 5 U.S.C. 553(b). In addition, section 553(d) of the APA requires agencies to delay the effective date of final rules by a minimum of 30 days after the date of their publication in the 
                    <E T="04">Federal Register</E>
                    . 5 U.S.C. 553(d). Both of these requirements can be waived if an agency finds, for good cause, that the notice and comment process and/or delayed effective date is impracticable, unnecessary, or contrary to the public interest, and incorporates a statement of the finding and the reasons therefore in the notice. 5 U.S.C. 553(b)(B), (d)(3).
                </P>
                <P>
                    DHS believes there is good cause for publishing this document without prior notice and opportunity for public 
                    <PRTPAGE P="45638"/>
                    comment and with an effective date of less than 30 days because such procedures are unnecessary. This document corrects a technical error in the regulatory text and does not make substantive changes to the policies in the IFR. Therefore, DHS believes that it has good cause to waive the notice and comment and effective date requirements of section 553 of the APA.
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 8 CFR Part 208</HD>
                    <P>Administrative practice and procedure, Aliens, Immigration, Reporting and recordkeeping requirements.</P>
                </LSTSUB>
                <P>Accordingly, 8 CFR part 208 is corrected by making the following amendment:</P>
                <PART>
                    <HD SOURCE="HED">PART 208—PROCEDURES FOR ASYLUM AND WITHHOLDING OF REMOVAL</HD>
                </PART>
                <REGTEXT TITLE="8" PART="208">
                    <AMDPAR>1. The authority citation for part 208 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>8 U.S.C. 1101, 1103, 1158, 1226, 1252, 1282, 1802, 1808; 48 U.S.C. 1806; 8 CFR part 2.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="8" PART="208">
                    <AMDPAR>2. Amend §  208.7 by adding paragraph (a)(1)(v) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§  208.7 </SECTNO>
                        <SUBJECT>Employment authorization.</SUBJECT>
                        <P>(a) * * *</P>
                        <P>(1) * * *</P>
                        <P>(v) If the asylum application is not so rejected or denied, USCIS shall have 30 days from the date of filing of the application for employment authorization to grant or deny that application, except that no employment authorization shall be issued to an asylum applicant prior to the expiration of the 180-day period following the filing of the asylum application filed on or after April 1, 1997.</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Christina E. McDonald,</NAME>
                    <TITLE>Associate General Counsel for Regulatory Affairs, U.S. Department of Homeland Security.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14698 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-97-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">COMMODITY FUTURES TRADING COMMISSION</AGENCY>
                <CFR>17 CFR Part 20</CFR>
                <SUBJECT>Order Sunsetting Certain Large Trader Reporting Requirements for Physical Commodity Swaps</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Commodity Futures Trading Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final Order.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Commodity Futures Trading Commission (“CFTC” or the “Commission”) is issuing this Order pursuant to § 20.9 of its regulations, the sunset provision of the Commission's large trader reporting rules for physical commodity swaps (“Part 20” or the “Swaps LTR Rules”). Based on the findings set out below, the Commission is rendering the routine position-reporting requirements of Part 20 ineffective and unenforceable, while preserving, pursuant to § 20.9(b), the Commission's authority to require the maintenance and production, on special call, of the underlying books, records, and futures-equivalent conversion methods. As a result, clearing organizations, clearing members, and swap dealers will no longer be required to file the daily and event-based position reports currently required under Part 20.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This Order is effective on July 21, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Stephen Andrews, Deputy General Counsel for Regulation, Office of the General Counsel, 
                        <E T="03">sdandrews@cftc.gov,</E>
                         202-308-7563, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    Part 20 of the Commission's regulations requires large traders in certain physical commodity swaps and swaptions to file position reports with the Commission.
                    <SU>1</SU>
                    <FTREF/>
                     The Commission adopted Part 20 on July 22, 2011, during the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as a temporary measure to enable the Commission to conduct surveillance of economically equivalent physical commodity futures, options, and swaps and to monitor and enforce position limits at a time when the Commission's broader swap data reporting framework had not yet been established.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         17 CFR part 20.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Large Trader Reporting for Physical Commodity Swaps, 76 FR 43851 (July 22, 2011) (“Adopting Release”).
                    </P>
                </FTNT>
                <P>When it adopted Part 20, the Commission anticipated that the rules would become unnecessary once its swap data reporting regime matured, and it therefore included a sunset provision in § 20.9. Section 20.9(a) provides that, except as otherwise provided in § 20.9(b), the sections of Part 20 “shall become ineffective and unenforceable upon a Commission finding that, through the issuance of an order, operating swap data repositories are processing positional data and that such processing will enable the Commission to effectively surveil trading in paired swaps and swaptions and paired swap and swaption markets.” Section 20.9(b) permits the Commission, in its discretion, to maintain the effectiveness and enforceability of any section of Part 20, or any requirement therein, upon finding that it provides the Commission with positional data or data elements that materially improve the accuracy and surveillance utility of the positional data processed by swap data repositories (“SDRs”).</P>
                <P>Since 2011, the Commission's regulatory framework for swaps has changed substantially. The Commission, jointly with the Securities and Exchange Commission, has further defined the term “swap”; has authorized the registration of SDRs under Part 49; has adopted and subsequently refined the swap data reporting requirements in Parts 43 and 45; and has established position limits on economically equivalent swaps for the most systemically significant commodities in Part 150. Together, these developments have created a comprehensive and continuously maintained regime for the reporting of swap transaction and position data that did not exist when Part 20 was adopted.</P>
                <HD SOURCE="HD1">II. The Part 20 Reports Now Largely Duplicate Data the Commission Obtains Through Its Swap Data Reporting Regime.</HD>
                <P>Part 20 requires clearing organizations to report daily position data records (§ 20.3), requires clearing members and swap dealers to report daily consolidated-account position data records (§ 20.4), and requires related identification filings (§ 20.5). These reporting obligations were designed to give the Commission daily visibility into large positions in physical commodity swaps in the energy, metals, and agricultural markets.</P>
                <P>
                    The information collected through these reports is now, in substantial part, available to the Commission through its swap data reporting regime. Amendments to Part 49 adopted in 2020 require SDRs to identify “open swaps”—a term the Commission adopted to serve the same function as the “open swap” and “closed swap” definitions in Part 20—and to provide the Commission with detailed reports, and direct electronic access to, that data. SDRs also collect, and can provide to the Commission, data identifying the futures contracts and commodities underlying open swaps, including 
                    <PRTPAGE P="45639"/>
                    whether a swap references or is economically related to the futures contract relevant to the Commission's public reporting and position-limits rules. Because SDR data is reported in a standardized format by a small number of registered repositories, the Commission is able to aggregate open-swap positions across market participants.
                </P>
                <P>
                    The Commission further observes that the swap data reporting regime provides data on a more timely basis than the second-business-day (T+2) reporting required of clearing members and swap dealers under § 20.7(c),
                    <SU>3</SU>
                    <FTREF/>
                     and that the quality and standardization of SDR data have been the subject of sustained Commission attention since 2011, whereas the substance of the Part 20 reporting requirements has not materially changed. The forthcoming extension of the unique product identifier (“UPI”) to the other commodity asset class is expected to enhance the Commission's ability to surveil these markets further.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         17 CFR part 43 (requiring real-time public reporting of swap transaction and pricing data as soon as technologically practicable after execution); 17 CFR 45.3 (establishing swap data reporting deadlines).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. The Commission Makes Limited Use of the Data, and Market Participants Support Ending the Routine Reporting Requirement, Which Imposes Substantial Costs</HD>
                <P>
                    The routine Part 20 reporting requirement imposes significant and recurring costs on reporting entities. Clearing members and swap dealers must identify in-scope physical commodity swaps, convert those transactions into futures-equivalent positions, validate the resulting position data, and submit detailed daily reports—maintaining for that purpose reporting systems that are separate from, and cannot readily be integrated with, the systems used to satisfy the Commission's Parts 43 and 45 requirements.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         For example, the Commission has estimated that these requirements impose costs totaling an estimated $21,899,208 in information collection burden and associated capital costs. 
                        <E T="03">See</E>
                         OMB Collection 3038-0095, ICR Ref. No. 202402-3038-003 (concluded Sept. 16, 2024).
                    </P>
                </FTNT>
                <P>The Commission makes limited use of Part 20 data. The data are not used in the Commission's enforcement program, are used only occasionally in the Commission's market oversight function, and have become less useful as the Commission's other reporting rules have been modernized.</P>
                <P>
                    The Commission has also received petitions from market participants requesting that it sunset Part 20. The Futures Industry Association (“FIA”) petitioned the Commission on September 22, 2025 to sunset the Swaps LTR Rules by Commission order 
                    <SU>5</SU>
                    <FTREF/>
                     and, in May 2026, FIA, the International Swaps and Derivatives Association, and the Securities Industry and Financial Markets Association jointly petitioned to the same effect.
                    <SU>6</SU>
                    <FTREF/>
                     These petitions contend that the Swaps LTR Rules are duplicative of, and in relevant respects inferior to, the data available through the Commission's swap data reporting regime, and that the conditions for sunset under § 20.9 have been satisfied.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Futures Industry Association, 
                        <E T="03">Petition for Repeal of a Rule (17 CFR 1.31): Large Trader Reporting of Physical Commodity Swaps</E>
                         (Sept. 22, 2025).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Joint International Swaps and Derivatives Association, Inc., the Futures Industry Association, and the Securities Industry and Financial Markets Association Letter, 
                        <E T="03">Sunset of Large Trader Reporting (LTR) for Physical Commodity Swaps pursuant to Regulation 20.9</E>
                         (May 20, 2026).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Retaining the Commission's Authority To Call for the Underlying Records</HD>
                <P>The Part 20 reports differ from SDR data in one respect that the Commission has considered. These reports submitted to the Commission include data on each trader's swap position already converted into a standardized futures-equivalent measure, which can assist the Commission in monitoring concentration in physical commodity swap positions. The Commission's swap data reporting systems collect the underlying swap transaction records and open swap position data but are not presently configured to process that data into the same futures-equivalent form, in part because the UPI framework for the other commodity asset class is not yet fully implemented. The Commission is able to perform that conversion itself, at least in part, from the data it already receives, supplemented by market data.</P>
                <P>To ensure the Commission can continue to maintain the effectiveness and enforcement of any section of this part or requirement therein, the Commission is retaining, under § 20.9(b), the recordkeeping and special-call provisions of Part 20. Under retained § 20.6, clearing organizations and reporting entities must continue to keep records of their transactions in paired swaps and swaptions, and of the methods used to convert those positions into futures equivalents, and must furnish those records—together with any pertinent information—to the Commission upon request. Any such special call will be appropriately scoped and will seek only records and information relevant to the Commission's surveillance or oversight interest giving rise to the call. Consistent with § 20.6, the Commission will afford recipients a reasonable period of time to respond to any special call, taking into account the scope of the call, the nature and volume of the records requested, and the format in which the recipient maintains those records in the ordinary course of its business. Retained § 20.5(b) preserves the Commission's authority to require a Form 40S filing upon special call, and the relevant delegations in § 20.8 remain in effect to permit those calls. As § 20.6 already provides, the required records may be kept and reproduced for the Commission in the record-retention format that a person has developed in the normal course of its business operations. These retained provisions therefore call for records that reporting entities generally maintain in the ordinary course; they do not require the ongoing conversion, validation, and daily submission of position reports that make routine Part 20 reporting costly. The practical effect is that firms no longer bear the expense of daily reporting, the Commission retains a reliable means of obtaining position information when it is needed, and the Commission does not leave itself without access to the underlying data.</P>
                <P>The Commission emphasizes that it is retaining the recordkeeping and special-call provisions of Part 20 as a transitional measure. The Commission anticipates that the forthcoming extension of the UPI framework to the other commodity asset class, together with related enhancements to the Commission's swap data reporting framework, will enable the Commission to derive futures-equivalent position information directly from the data it receives. Upon implementation of the UPI framework for the other commodity asset class and the Commission's satisfaction that the resulting data are sufficient for its surveillance purposes, the Commission expects that the need for the retained special-call authority under §§ 20.6 and 20.5(b) will diminish or be eliminated, and the Commission intends to revisit the continued necessity of these retained provisions at that time.</P>
                <HD SOURCE="HD1">V. Final Order</HD>
                <P>Upon due consideration and consistent with the determinations set forth herein, the Commission hereby issues the following order:</P>
                <P>
                    1. Pursuant to § 20.9(a), the Commission finds that SDRs collect the swap transaction records from market participants and construct open swap positions from the transaction records based on requirements detailed in Part 
                    <PRTPAGE P="45640"/>
                    45 and report these data to the Commission. The Part 45 rule update in 2020 provided additional granularity to reporting requirements (including counterparty-related fields and standardized data elements), resulting in higher coverage of swap transactions in which both counterparties are identified.
                    <SU>7</SU>
                    <FTREF/>
                     Further improvements in the Commission's technical specifications for Parts 43 and 45 implemented in January 2024 have materially increased the accuracy and consistency of swap-market data. Taken together, these improvements, and the Commission's direct electronic access to SDR data under Part 49, enable the Commission to effectively surveil trading in paired swaps and swaptions and the boarder pair swap and swaption markets. Lastly, the Commission implemented Part 150 in 2021 to replace the Commission's positions limits with the federal speculative position limits on 25 core physical commodity derivatives, further diminishing the surveillance value of the routine Part 20 positional reports. In reaching this finding, the Commission relies on the swap data reporting and repository framework established under Parts 43, 45, and 49; the availability to the Commission, through that framework, of transaction and position data for open swaps; the Commission's direct electronic access to SDR data; and the position-limits framework in Part 150. The Commission's authority under retained § 20.6 to obtain, on special call, the underlying records and futures-equivalent conversion methods further ensures that the Commission will not lack access to position information in any particular case. Accordingly, the Commission has determined that the routine position-reporting requirements of Part 20 are henceforth ineffective and unenforceable and clearing organizations, clearing members, and swap dealers will no longer be required to file the daily and event-based position reports currently required under Part 20.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         85 FR 75503, 75516 (Nov. 25, 2020) (promulgating § 45.5 to require each swap be identified with a Unique Transaction Identifier (“UTI”) in all recordkeeping and all swap data reporting, and to require that the UTI be comprised of the Legal Entity Identifier of the generating entity and a unique alphanumeric code).
                    </P>
                </FTNT>
                <P>2. Pursuant to § 20.9(b), as explained in section IV above, the Commission finds that the recordkeeping and special-call requirements of §§ 20.6 and 20.5(b), together with the definitions in § 20.1, the list of covered contracts in § 20.2, the delegations in § 20.8 pertaining to those provisions, and the futures-equivalency guidance in Appendix A are necessary because they provide the Commission with data on open swap positions and relevant data elements—obtainable on special call—that materially improve the accuracy and surveillance utility of the open swap position data processed by SDRs. In exercising the special-call authority preserved by this paragraph, the Commission or its delegates will issue calls that are appropriately scoped to, and that seek only records and information relevant to, the specific surveillance or oversight interest prompting the call, and will afford recipients a reasonable period of time to respond in light of the scope of the call and the recipient's ordinary-course recordkeeping practices. The Commission further finds that this retained authority serves as a transitional bridge pending full implementation of the UPI framework for the other commodity asset class, upon which the Commission intends to reassess the continued necessity of these retained provisions.</P>
                <P>Accordingly, the Commission has determined to maintain the effectiveness and enforceability of those provisions.</P>
                <SIG>
                    <DATED>Issued in Washington, DC, on July 17, 2026, by the Commission.</DATED>
                    <NAME>Robert Sidman,</NAME>
                    <TITLE>Deputy Secretary of the Commission.</TITLE>
                </SIG>
                <NOTE>
                    <HD SOURCE="HED">Note:</HD>
                    <P>The following appendix will not appear in the Code of Federal Regulations.</P>
                </NOTE>
                <HD SOURCE="HD1">Order Sunsetting Certain Large Trader Reporting Requirements for Physical Commodity Swaps—Voting Summary</HD>
                <P>On this matter, Chairman Selig voted in the affirmative. No Commissioner voted in the negative.</P>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14710 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6351-01-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">COMMODITY FUTURES TRADING COMMISSION</AGENCY>
                <CFR>17 CFR Part 41</CFR>
                <SUBJECT>Order Providing Exemptive Relief To Facilitate Listing of Cash-Settled Futures on Individual Equity Securities</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Commodity Futures Trading Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Order.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Commodity Futures Trading Commission (“Commission” or “CFTC”) is issuing an order pursuant to the Commodity Exchange Act (“CEA”) that provides exemptive relief from the Commission's opening price settlement requirement for security futures products in connection with Chicago Mercantile Exchange Inc.'s (“CME”) plans to list cash-settled futures on individual equity securities for trading pursuant to its registration as a designated contract market and notice registration as a national securities exchange.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable as of July 16, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Paul Chaffin, Special Counsel, Division of Market Oversight, 
                        <E T="03">pchaffin@cftc.gov,</E>
                         202-418-5185, at the Commodity Futures Trading Commission, 1155 21st Street NW, Washington, DC 20581.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Introduction</FP>
                    <FP SOURCE="FP-2">II. Regulatory Background</FP>
                    <FP SOURCE="FP-2">III. Request for Exemption</FP>
                    <FP SOURCE="FP-2">IV. Exemption</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>
                    In a letter dated July 25, 2025,
                    <SU>1</SU>
                    <FTREF/>
                     CME requested that the Commission grant an exemption from the requirements of CFTC regulation 41.25(c) 
                    <SU>2</SU>
                    <FTREF/>
                     in connection with CME's intention to list cash-settled futures on individual equity securities for trading pursuant to its registration as a designated contract market (“DCM”) and notice registration as a national securities exchange. CME requested a parallel exemption from the Securities and Exchange Commission (“SEC”).
                    <SU>3</SU>
                    <FTREF/>
                     During the SEC's review of CME's request, CME agreed to incorporate certain heightened listing standards into its initial proposed listing standard rules.
                    <SU>4</SU>
                    <FTREF/>
                     On July 10, 2026, the SEC granted CME's exemptive request, and included as conditions to its exemptive order the heightened listing standards that CME had proposed.
                    <SU>5</SU>
                    <FTREF/>
                     Subsequently, on July 15, 
                    <PRTPAGE P="45641"/>
                    2026, CME submitted an updated request to the Commission that proposed heightened listing standards identical to those listing standards incorporated as conditions in the SEC Exemptive Order.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See</E>
                         Letter from J. Marcus to C. Kirkpatrick re: Request for Exemption Pursuant to Commission Regulation 41.25(e) (July 25, 2025) (the “Initial Request”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 41.25(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Notice of an Application of the Chicago Mercantile Exchange Inc. for an Exemption Pursuant to Section 36 of the Securities Exchange Act of 1934 and Request for Comment in Connection With the Opening Price Settlement Requirements of Rule 6h-1(b) Under the Securities Exchange Act of 1934 for Certain Cash-Settled Securities Futures, 91 FR 6681 (Feb. 12, 2026).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See generally</E>
                         Letter from J. Marcus to V. Countryman re: Request for Exemption Response to Comment Letters (June 9, 2026), 
                        <E T="03">available at https://www.sec.gov/comments/S7-2026-04/s7202604-809059-2460867.pdf</E>
                         (the “CME Comment Letter”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Release No. 34-105882; Order Under Section 36 of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 6h-1(d) Thereunder Granting Conditional Exemptive Relief to the Chicago Mercantile Exchange Inc. from the Opening Price Settlement Requirements of Rule 6h-1(b) Under the Exchange Act for Certain Cash-Settled Security Futures, 91 FR 43410 (July 10, 2026) (the “SEC Exemptive Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Letter from J. Marcus to C. Kirkpatrick re: Request for Exemption Pursuant to Commission Regulation 41.25(e) (July 15, 2026) (the “Request” or “CME Letter”).
                    </P>
                </FTNT>
                <P>
                    For the reasons discussed below, the Commission has determined it is consistent with the public interest and the protection of customers to grant conditional exemptive relief pursuant to CFTC regulation 41.25(e) 
                    <SU>7</SU>
                    <FTREF/>
                     to CME from the opening price settlement requirements of CFTC regulation 41.25(c).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         17 CFR 41.25(e).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Regulatory Background</HD>
                <P>
                    The Commodity Futures Modernization Act of 2000 (“CFMA”) authorized the trading of futures on individual stocks and narrow-based security indexes (collectively, “security futures”).
                    <SU>8</SU>
                    <FTREF/>
                     Security futures are jointly regulated by the CFTC and the SEC (together, the “Commissions”). The CFMA defines a security future as a contract of sale for future delivery under the CEA 
                    <SU>9</SU>
                    <FTREF/>
                     and as a security under the Exchange Act.
                    <SU>10</SU>
                    <FTREF/>
                     A DCM listing security futures must meet certain requirements specified in the CEA and the Commission's regulations,
                    <SU>11</SU>
                    <FTREF/>
                     including, among other things, applying listing standards requiring that “[t]rading in the security futures product is not readily susceptible to manipulation of the price of such security futures product, nor to causing or being used in the manipulation of the price of any underlying security, option on such security, or option on a group or index including such securities.” 
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Public Law 106-554, Appendix E, 114 Stat. 2763.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Section 1a(44) of the CEA, 7 U.S.C. 1a(44).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Section 3(a)(10) of the Exchange Act, 15 U.S.C. 78(c)(a)(10).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See generally</E>
                         Joint final rule, Cash Settlement and Regulatory Halt Requirements for Security Futures Products, 67 FR 36740, 36741 (May 24, 2002).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         7 U.S.C. 2(a)(1)(D)(i).
                    </P>
                </FTNT>
                <P>
                    Historically, stock index futures and options used closing-price settlement procedures, which generally base the settlement price on the execution prices from the last regular session trades in the underlying securities.
                    <SU>13</SU>
                    <FTREF/>
                     In the 1980s, use of closing-price settlement procedures led to the proliferation of index arbitrage activities.
                    <SU>14</SU>
                    <FTREF/>
                     To accommodate large buy and sell orders associated with the unwinding of arbitrage orders on expiration Fridays, specialists often had to significantly lower or raise prices at the close to establish sufficient interest to match orders in the underlying securities.
                    <SU>15</SU>
                    <FTREF/>
                     Accordingly, the unwinding of arbitrage-related positions severely strained the liquidity of the underlying securities markets, and raised concerns regarding potential manipulation and abusive trading practices. To ease expiration-related liquidity restraints, markets offering many of these products transitioned to opening-price settlement procedures. Opening-price settlement procedures enabled exchanges to leverage existing technology to process and match incoming unwinding stock orders before the opening of the regular session trading hours, and used long-standing procedures to disseminate indicative prices in an orderly manner before markets opened.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Joint final rule, Cash Settlement and Regulatory Halt Requirements for Security Futures Products, 67 FR at 36741.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Commissions codified these market practices in 2002.
                    <SU>16</SU>
                    <FTREF/>
                     Commission regulation 41.25(c) requires that the “final settlement price of a cash-settled security futures product must fairly reflect the opening price of the underlying security or securities.” 
                    <SU>17</SU>
                    <FTREF/>
                     When promulgating the opening-price settlement procedures rules, the Commissions also established rules permitting exemptions from those requirements. Specifically, Commission regulation 41.25(e) provides that “[t]he Commission may exempt a designated contract market from the provisions of paragraph[ ] . . . and (c) of this section, either unconditionally or on specified terms and conditions, if the Commission determines that such exemption is consistent with the public interest and the protection of customers.” 
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         Joint final rule, Cash Settlement and Regulatory Halt Requirements for Security Futures Products, 67 FR 36740.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         17 CFR 41.25(c). The SEC promulgated a similar rule in conjunction with the promulgation of Commission regulation 41.25(c). 
                        <E T="03">See</E>
                         17 CFR 6h-1(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         17 CFR 41.25(e).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. Request for Exemption</HD>
                <P>
                    CME intends to list cash-settled futures on individual equity securities for trading pursuant to its registration as a DCM and its notice registration with the SEC as a national securities exchange.
                    <SU>19</SU>
                    <FTREF/>
                     CME intends to use the underlying securities' closing price—rather than opening price—on the last day of trading to establish a final settlement price.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         CME Letter at 1-2. CME previously listed security futures, but has not listed any since March 2011. 
                        <E T="03">See id.</E>
                         at 2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">Id.</E>
                         at 1-2.
                    </P>
                </FTNT>
                <P>
                    As discussed above, Commission regulation 41.25(c) states, in part, that the “final settlement price of a cash-settled security futures product must fairly reflect the opening price of the underlying security or securities.” 
                    <SU>21</SU>
                    <FTREF/>
                     However, CME has determined that certain developments in the markets since the adoption of Commission regulation 41.25(c) support the use of the underlying securities' closing price in the settlement of security futures.
                    <SU>22</SU>
                    <FTREF/>
                     In light of these developments, CME requests exemptive relief from the requirement in CFTC Regulation 41.25(c) such that it may adopt listing standard rules for such security futures.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 41.25(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         CME Letter at 4.
                    </P>
                </FTNT>
                <P>
                    Specifically, CME believes an exemption from CFTC regulation 41.25(c)'s requirement that security futures settled based on the opening price of the underlying security is appropriate for three reasons. First, CME states that recent data show that highly liquid securities now trade in greater volume at market close, alleviating the concerns that motivated the promulgation of Commission regulation 41.25(c).
                    <SU>23</SU>
                    <FTREF/>
                     Second, CME states that trading in cash-settled index options that settle based on closing prices demonstrates the benefits of using underlying securities' closing price to establish a final settlement price.
                    <SU>24</SU>
                    <FTREF/>
                     Additionally, CME proposes to apply heightened listing standards for security futures that provide for final settlement based on the underlying security's closing price, rather than its opening price (“Proposed Security Futures”) to provide additional protection against manipulation. Those listing standards would, among other things, require the securities underlying the Proposed Security Futures be limited to those that are highly liquid, including at the close of market.
                    <SU>25</SU>
                    <FTREF/>
                     The Commission discusses 
                    <PRTPAGE P="45642"/>
                    each of these reasons in greater detail below.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         For example, CME proposes listing standards that would require that each underlying security for a securities future listed and traded pursuant to exemption shall (1) maintain over 20 million shares in estimated deliverable supply; (2) maintain a minimum outstanding market capitalization of $100 billion; (3) maintain a minimum average daily value traded (“ADVT”) of $450 million over the prior six months (or if the underlying security has been trading for less than six months, a minimum ADVT of $1 billion over the prior month). Additionally, to maintain listing of a securities future listed and traded pursuant to exemption, each underlying security for a securities future shall maintain a market capitalization of at least $50 billion and ADVT must be at least $200 million over the prior calendar quarter (or if the underlying security has been trading for less than a calendar quarter, a minimum ADVT of $1 billion over the prior period 
                        <PRTPAGE/>
                        traded during the calendar quarter). 
                        <E T="03">See</E>
                         CME Letter at 9-10.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Recent Data for Highly Liquid Stock Shows Greater Trading Volume at Market Close</HD>
                <P>
                    CME states that, in general, liquidity in the equity securities markets has substantially increased since 2002, including trading volumes at both the open and close of markets.
                    <SU>26</SU>
                    <FTREF/>
                     CME further states that trading volumes for equity securities are today generally significantly greater at the market close, as compared to the market open. Given these developments, CME believes the concern that using closing prices for final settlement could strain trading liquidity at the close for the underlying securities when market participants engaged in intermarket trading strategies to unwind their securities positions is no longer valid.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         CME Letter at 8.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">Id.</E>
                         at 8-9.
                    </P>
                </FTNT>
                <P>
                    To demonstrate the current state of liquidity for the relevant equity securities, CME analyzed recent data reflecting the trading volume of highly liquid stocks—specifically, stocks with average daily volume of transactions (“ADVT”) of $100 million or more—at market close. First, CME compared the trading volume 
                    <SU>28</SU>
                    <FTREF/>
                     at the market close versus the market open for stocks in the Russell 1000 index, which were screened to capture securities that meet or exceed a $100 million ADVT threshold.
                    <SU>29</SU>
                    <FTREF/>
                     The analysis indicated that, on the 25 Fridays between January 2025 and June 2025 (excluding April 18, 2025, Good Friday, as the markets are closed), trading volume at the close was significantly higher than the trading volume at the open.
                    <SU>30</SU>
                    <FTREF/>
                     The analysis further indicated that the lower the ADVT, the higher the ratio became between closing and opening auction.
                    <SU>31</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         For stocks primarily listed at the New York Stock Exchange (“NYSE”), volume was measured by “auction” price. For stocks primarily listed at Nasdaq, volume was measured by “cross” price. Total trading volume was measured by the aggregate value of all transactions in the opening/closing auctions. Collectively, CME described ADVT as “auction” volume. 
                        <E T="03">See</E>
                         CME Letter at 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         In its Request, CME proposed a $100 million ADVT threshold as a listing standard and specified its analysis to that listing standard. 
                        <E T="03">See</E>
                         CME Letter at 2. In its Comment Letter, CME proposed a heightened $450 million ADVT threshold as a listing standard. 
                        <E T="03">See</E>
                         CME Comment Letter at 3-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         CME Letter at 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Next, CME provided a robustness analysis of trading under different market conditions. CME isolated trading data for three separate weeks, intending to capture periods of average, high, and low market volatility conditions. CME found that under all scenarios, the comparison between opening and closing auctions remained consistent in that closing auctions were more robust as compared to opening auctions. CME also found that for opening and closing prices on third Fridays other than quarterly third Fridays, the difference in volume is even more in favor of the close.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">Id.</E>
                         at 6-9.
                    </P>
                </FTNT>
                <P>
                    In sum, CME found that trading volumes at the close were substantially larger than the trading volumes at the opening across various market conditions.
                    <SU>33</SU>
                    <FTREF/>
                     CME therefore concluded that today's equities markets have substantial liquidity that can better accommodate demand at the close, as compared to the less liquid markets of the past. CME states that “it is no longer a valid concern that using official closing prices for final settlement of security futures contracts could strain trading liquidity at the close for the underlying securities when market participants engaged in intermarket trading strategies unwind their securities positions.” 
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">Id.</E>
                         at 8.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">Id.</E>
                         at 8-9.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Cash-Settled Index Options Demonstrate Benefits of Closing-Price Settlement</HD>
                <P>
                    CME also stated that other exchanges have relied on closing prices of underlying securities for listed options without incident, underscoring that securities markets have evolved and do not present the same concerns as in the past.
                    <SU>35</SU>
                    <FTREF/>
                     Specifically, CME states that while certain listed securities index options settle based on opening prices, listed options on individual stocks are exercised based on the underlying securities' closing prices.
                    <SU>36</SU>
                    <FTREF/>
                     The SEC has recently granted permanent approval of Cboe Exchange, Inc. rules pursuant to which Cboe Exchange, Inc. lists index options using closed prices of the underlying securities for the index calculation.
                    <SU>37</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">Id.</E>
                         at 9. CME acknowledges that, although these options markets are not generally cash-settled, the closing price final settlement mechanism is nonetheless informative.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">Id.</E>
                         at 9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.,</E>
                         citing Securities Exchange Act Release No. 34-98454, Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Make Permanent The Operation of the Program That Allows the Exchange To List P.M.-Settled Third Friday-of-the-Month S&amp;P 500 Stock Index Options (“SPX”) Series, 88 FR 66103, 66103 (Sept. 26, 2023).
                    </P>
                </FTNT>
                <P>
                    CME also explains that, because many cash-settled security index options, including those on individual securities, settle based on closing prices,
                    <SU>38</SU>
                    <FTREF/>
                     absent securities futures on the same underlying securities, a disconnect would arise in the settlement parameters between security futures and security index options and lead to market disruption and inefficiency for intermarket arbitrage or hedging strategies. Aligning settlement of security futures and security index options at closing prices could avoid the risk of such disruption and inefficiency.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         CME Letter at 4-5.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Proposed Listing Standards To Ensure Proposed Securities Futures Are Not Readily Susceptible to Manipulation</HD>
                <P>
                    CME's Request is limited to futures, herein called “Proposed Security Futures,” which would conform to certain initial requirements to ensure sufficient liquidity exists in the underlying securities.
                    <SU>39</SU>
                    <FTREF/>
                     CME believes that such heightened listing standards will “assure a robust market for the underlying security to protect against manipulation.” 
                    <SU>40</SU>
                    <FTREF/>
                     Specifically, the Request stated that CME supported conditioning exemptive relief on CME implementing listing standards under which the underlying security for each Proposed Security Future must: 
                    <SU>41</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         In the Initial Request, CME proposed listing standards pursuant to which the underlying security for each Proposed Security Future must (1) exceed 20 million shares in estimated deliverable supply, (2) have a minimum market capitalization of at least $20 billion, and (3) have a minimum ADVT of $100 million over the prior sixth months. Initial Request at 9. In the CME Letter, CME stated that it would support including even more restrictive conditions in any exemptive relief. CME Letter at 1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         CME Letter at 9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">Id.</E>
                         at 9-10.
                    </P>
                </FTNT>
                <P>1. Exceed 20 million shares in estimated deliverable supply;</P>
                <P>2. Have a minimum outstanding market capitalization of $100 billion;</P>
                <P>3. Have a minimum ADVT of $450 million over the prior six months (or if the underlying security has been trading for less than six months, a minimum ADVT of $1 billion over the prior month).</P>
                <P>
                    CME also stated in the Request that it intends to review the underlying securities listed pursuant to the proposed exemption on a quarterly basis and apply as maintenance standards a market capitalization of at least $50 billion and ADVT of at least $200 million over the prior quarter (or if the underlying security has been trading for less than a calendar quarter, a minimum ADVT of $1 billion over the prior period traded during the calendar quarter).
                    <SU>42</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">Id.</E>
                         at 9.
                    </P>
                </FTNT>
                <P>
                    CME further stated that position limits will provide additional protection 
                    <PRTPAGE P="45643"/>
                    against manipulation.
                    <SU>43</SU>
                    <FTREF/>
                     CME has set initial position limits at 200,000 contracts in the context of 100 share contracts, or the equivalent thereto for contracts listed in another size.
                    <SU>44</SU>
                    <FTREF/>
                     CME's rule also provides that any adjusted position limits will be set, in accordance with Commission regulation 41.25(b)(3), at levels no greater than the equivalent of 12.5 percent of the estimated deliverable supply of the underlying security for securities exceeding 20 million shares in estimated deliverable supply and no greater than 25,000 contracts for securities at or below 20 million shares in estimated deliverable supply, and that such limits will be effective during the last three trading days of an expiring contract month.
                    <SU>45</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">Id.</E>
                         at 10.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         17 CFR 41.25(b)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         CME Letter at 9-10.
                    </P>
                </FTNT>
                <P>
                    Additionally, CME cites its anti-manipulation rules and monitoring and surveillance by CME's Market Regulation Department as protections against manipulation.
                    <SU>46</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         CME Letter at 10-11.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Exemption</HD>
                <P>Based upon the foregoing, including the following facts:</P>
                <P>CME has represented and presented analysis to show the underlying securities for the Proposed Security Futures typically trade in greater volume at the close of the trading day than the opening of the trading day.</P>
                <P>CME has represented that other exchanges have relied on closing prices of underlying securities for certain listed options without incident, underscoring that securities markets have evolved and do not present the same concerns of market manipulation as in the past.</P>
                <P>CME has represented that it will apply heightened listing standards to the Proposed Security Futures to assure a robust market for the underlying security to protect against manipulation.</P>
                <P>
                    CME has represented that it will apply position limits to the Proposed Security Futures that are consistent with the requirements of Commission regulation 41.25(b)(3),
                    <SU>47</SU>
                    <FTREF/>
                     that it will apply its anti-manipulation rules, and that trading in the Proposed Security Futures will be subject to monitoring and surveillance by CME's Market Regulation Department.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         17 CFR 41.25(c).
                    </P>
                </FTNT>
                <P>
                    The Commission believes these market developments and the heightened listing standards proposed by CME mitigate the concerns that animated Commission regulation 41.25(c)'s requirement that the final settlement price of cash-settled security futures must fairly reflect the opening price of the underlying security or securities.
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Joint final rule, Cash Settlement and Regulatory Halt Requirements for Security Futures Products, 67 FR at 36741 (Commission regulation 41.25(c) responded to the concern that closing-price settlement procedures could “severely strain[ ] the liquidity of the securities markets”). Additionally, the Commission observes that CME has proposed to make available to the public and the SEC a study of the effect of cash-settled single stock futures on the market for the underlying securities. 
                        <E T="03">See</E>
                         SEC Exemptive Order, 91 FR at 43413. The SEC stated that trading data generated and published through that study may be used by the SEC and the public to assess the potential impact of the Proposed Security Futures. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>Accordingly, the Commission FINDS, as required by Commission regulation 41.25(e), that, with respect to the Proposed Security Futures, an exemption from the opening price settlement requirement in Commission regulation 41.25(c) is consistent with the public interest and the protection of customers.</P>
                <P>
                    <E T="03">Now therefore:</E>
                </P>
                <P>
                    <E T="03">It is hereby ordered that,</E>
                     pursuant to Commission regulation 41.25(e),
                    <SU>49</SU>
                    <FTREF/>
                     CME is exempted from the requirements of Commission regulation 41.25(c) 
                    <SU>50</SU>
                    <FTREF/>
                     in connection with listing single security futures contracts, subject to the following conditions:
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         17 CFR 41.25(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         17 CFR 41.25(c).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Listing Standards:</E>
                     CME shall establish the following listing standards for single security futures contracts:
                </P>
                <P>1. Each underlying security for a securities future listed and traded pursuant to exemption shall maintain over 20 million shares in estimated deliverable supply;</P>
                <P>2. Each underlying security for a securities future listed and traded pursuant to exemption shall maintain a minimum outstanding market capitalization of $100 billion;</P>
                <P>3. Each underlying security for a securities future listed and traded pursuant to exemption shall maintain a minimum average daily value traded (“ADVT”) of $450 million over the prior six months (or if the underlying security has been trading for less than six months, a minimum ADVT of $1 billion over the prior month); and</P>
                <P>4. To maintain listing of a securities future listed and traded pursuant to exemption, each underlying security must have a market capitalization of at least $50 billion and ADVT must be at least $200 million over the prior quarter (or if the underlying security has been trading for less than a calendar quarter, a minimum ADVT of $1 billion over the prior period traded during the calendar quarter).</P>
                <P>
                    <E T="03">Listing Schedule:</E>
                     CME shall limit its listing schedule for securities futures listed and traded pursuant to exemption to contracts with underlying securities with no longer than 9 months to expiration.
                </P>
                <P>
                    <E T="03">Public Data Provision:</E>
                     CME shall make publicly available in a machine-readable Comma-Separated Values format for a period of 18 months the following information:
                </P>
                <P>
                    1. On a daily basis, a daily report of aggregate long and short positions by market participant type (including market maker, firm, and customer) or by clearing member account type (
                    <E T="03">e.g.,</E>
                     proprietary and customer account, as required by Commission regulation 16.00 
                    <SU>51</SU>
                    <FTREF/>
                    ) for each security future listed and traded pursuant to this exemption (“Listed Cash-Settled Product”);
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         17 CFR 16.00.
                    </P>
                </FTNT>
                <P>2. For each security underlying a Listed Cash-Settled Product, the opening price for the next trading day after the settlement Friday and the closing price on the settlement Friday, along with the percentage change between these two prices, and the average percent change between these two prices over the course of a year, made available every six months from initial listing and to the Commission upon request;</P>
                <P>
                    3. For each Listed Cash-Settled Product, the month-end aggregate long and short positions by market participant type (including market maker, firm and customer) or by clearing member account type (
                    <E T="03">e.g.,</E>
                     proprietary and customer account as required by CFTC Rule 16.00) and trading volume for each month, made available every six months from initial listing and to the Commission upon request; and
                </P>
                <P>4. For each security underlying a Listed Cash-Settled Product, the first traded price and the last traded price for the 15-minute periods of 3:30 p.m.-3:45 p.m. and 3:45 p.m.-4:00 p.m. for every Friday of each month along with the next trading day's opening price, made available every six months from initial listing and to the Commission upon request.</P>
                <P>
                    <E T="03">CME Study:</E>
                     CME shall provide the Commissions within 18 months from initial listing a report examining the effect of cash-settled single stock futures and, to the extent listed and traded, cash-settled single stock options, on the market for the underlying securities. This report shall include analysis concerning the Proposed Cash-Settled Products, as well as analysis of any other similar P.M. settled, cash-settled single stock security futures, security 
                    <PRTPAGE P="45644"/>
                    options, or other similar derivative listed and traded during the period subject to the report. The report shall examine the price of the underlying stock at 3:30 p.m. and 3:45 p.m. on expiration day, the closing price of the underlying stock on expiration day, the opening price on the next trading day, and the percentage change among such prices. The report shall also include the number of the Proposed Cash-Settled Products settled based on the closing price of the underlying stock, with a discussion of price reversal (
                    <E T="03">i.e.,</E>
                     change in the closing price of the underlying security and the opening price on the next trading day). The report shall be made publicly available.
                </P>
                <STARS/>
                <P>This Order is based upon the analysis set forth above the information contained in the petition. Any material change in law or circumstances pursuant to which this Order is granted might require the Commission to reconsider its finding that the exemption contained herein is consistent with the public interest and the protection of customers. Further, the Commission reserves the right, in its discretion, to revisit any of the terms and conditions of the exemption provided herein, and to condition, suspend, terminate, or otherwise modify or restrict the exemption granted in this Order, as appropriate, upon its own motion.</P>
                <SIG>
                    <P>Issued in Washington, DC, on July 16, 2026, by the Commission.</P>
                    <NAME>Christopher Kirkpatrick,</NAME>
                    <TITLE>Secretary of the Commission.</TITLE>
                </SIG>
                <NOTE>
                    <HD SOURCE="HED">Note:</HD>
                    <P>The following appendix will not appear in the Code of Federal Regulations.</P>
                </NOTE>
                <APPENDIX>
                    <HD SOURCE="HED">Appendix to Order Providing Exemptive Relief To Facilitate Listing of Cash-Settled Futures on Individual Equity Securities—Commission Voting Summary</HD>
                </APPENDIX>
                <EXTRACT>
                    <P>On this matter, Chairman Selig voted in the affirmative. No Commissioner voted in the negative.</P>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14635 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6351-01-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 100</CFR>
                <DEPDOC>[Docket No. USCG-2026-0893]</DEPDOC>
                <SUBJECT>Special Local Regulations; Marine Events Within the Captain of the Port Charleston</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <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 special local regulations for the Beaufort Water Festival Air Show event on July 25, 2026, to provide for the safety of life on the navigable waterway during this event. Our regulation for marine events within the Seventh Coast Guard District identifies the regulated area for this event in Beaufort, SC. During the enforcement period, the operator of any vessel in the regulated area must comply with directions from the Captain of the Port, Sector Charleston, or their designated representative.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The regulations in 33 CFR 100.704 will be enforced for the Beaufort Water Festival Air Show regulated area listed in Item No. 8 in Table 1 to § 100.704 from 12 p.m. to 5 p.m. on July 25, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions about this notification of enforcement, call or email Petty Officer Second Class Shelby G. Perry, Sector Charleston Waterways Management Division, U.S. Coast Guard; telephone 843-740-3184, email at 
                        <E T="03">Shelby.G.Perry@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Coast Guard will enforce special local regulations in 33 CFR 100.704 for the Beaufort Water Festival Air Show regulated area from 12 p.m. to 5 p.m. on July 25, 2026. This action is being taken to provide for the safety of life on navigable waterways during this event. Our regulation for marine events within the Coast Guard Southeast District, § 100.704, Item No. 8, specifies the location of the regulated area for the Beaufort Water Festival Air Show. During the enforcement periods, as reflected in § 100.704(c), if you are the operator of a vessel in the regulated area you must comply with directions from the Captain of the Port, Sector Charleston, or their designated representative.</P>
                <P>
                    In addition to this notification of enforcement in the 
                    <E T="04">Federal Register</E>
                    , the Coast Guard plans to provide notification of this enforcement period via Local Notice to Mariners, Marine Safety Information Bulletins, Broadcast Notice to Mariners, and on-scene designated representatives.
                </P>
                <SIG>
                    <NAME>S.A. Lansing,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port Sector Charleston. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14648 Filed 7-20-26; 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 100</CFR>
                <DEPDOC>[Docket No. USCG-2026-0892]</DEPDOC>
                <SUBJECT>Special Local Regulations; Marine Events Within the Captain of the Port Charleston</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <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 special local regulations for the Beaufort Water Festival event from July 17, 2026, through July 26, 2026, to provide for the safety of life on the navigable waterway during this event. Our regulation for marine events within the Seventh Coast Guard District identifies the regulated area for this event in Beaufort, SC. During the enforcement periods, the operator of any vessel in the regulated area must comply with directions from the Captain of the Port, Sector Charleston, or their designated representative.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The regulations in 33 CFR 100.704 will be enforced for the Beaufort Water Festival regulated area listed in Item No. 7, in Table 1 to § 100.704 from 7 a.m. to 5 p.m. each day from July 17, 2026, through July 26, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions about this notification of enforcement, call or email Petty Officer Second Class Shelby G. Perry, Sector Charleston Waterways Management Division, U.S. Coast Guard; telephone 843-740-3184, email at 
                        <E T="03">Shelby.G.Perry@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Coast Guard will enforce special local regulations in 33 CFR 100.704 for the Beaufort Water Festival regulated area from 7 a.m. to 5 p.m. each day from July 17, 2026, through July 26, 2026. This action is being taken to provide for the safety of life on navigable waterways during this event. Our regulation for marine events within the Coast Guard 
                    <PRTPAGE P="45645"/>
                    Southeast District, § 100.704, specifies the location of the regulated area for the Beaufort Water Festival event which encompasses all waters 200 yards from seawall at Waterfront Park extending from Lady's Island Bridge to Spanish Point in Beaufort, SC.
                </P>
                <P>During the enforcement periods, as reflected in § 100.704(c), if you are the operator of a vessel in the regulated area you must comply with directions from the Captain of the Port, Sector Charleston, or their designated representative.</P>
                <P>
                    In addition to this notification of enforcement in the 
                    <E T="04">Federal Register</E>
                    , the Coast Guard plans to provide notification of this enforcement period via Local Notice to Mariners, Marine Safety Information Bulletins, Broadcast Notice to Mariners, and on-scene designated representatives.
                </P>
                <SIG>
                    <NAME>S.A. Lansing,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port Sector Charleston. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14645 Filed 7-20-26; 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-2026-0946]</DEPDOC>
                <RIN>RIN 1625-AA00</RIN>
                <SUBJECT>Safety Zone; Pier 66, Elliott Bay, Seattle, WA</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, Department of Homeland Security.</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 extending 100 yards from Pier 66, Elliott Bay, Seattle, WA on July 21, 2026. The safety zone is needed to provide for the safety of life on navigable waterways during the event. During the enforcement period no vessel operator may enter, transit, moor, or anchor within the safety zone, except for vessels authorized by the Captain of the Port (COTP) or their designated representative(s).</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective from noon through 4 p.m. on July 21, 2026.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view available documents go to 
                        <E T="03">https://www.regulations.gov</E>
                         and search for USCG-2026-0946.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions about this rule, call or email LT Anthony Pinto, U.S. Coast Guard, Sector Puget Sound, Waterways Management Division; by telephone 206-827-4839, or email 
                        <E T="03">SectorPugetSoundWWM@uscg.mil</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">COTP Captain of the Port</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 and Authority</HD>
                <P>The Coast Guard received notification that the Fleet Week Maritime Festival Parade of Ships will be conducted within the waters near Pier 66, Elliott Bay, Seattle, WA. The Captain of the Port (COTP) Sector Puget Sound has determined that potential hazards associated with the parade are a safety concern for anyone within all waters extending 100 yards from Pier 66, Elliott Bay, Seattle, Washington within a box encompassed by the points, 47°36.719′ N, 122°21.099′ W; 47°36.682′ N, 122°21.149′ W; 47°36.514′ N, 122°20.865′ W; and 47°36.552′ N, 122°20.814′ W. Therefore, the COTP is issuing this rule under the authority in 46 U.S.C. 70034, which is needed to protect personnel, vessels, and the marine environment in the navigable waters within the safety zone.</P>
                <P>Because of these potential hazards, the Coast Guard is issuing this rule without prior notice and comment. As is authorized by 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. The Coast Guard was notified of this event on June 23, 2026, but we must establish this safety zone by July 21, 2026, to protect personnel, vessels, and the marine environment. Therefore, we do not have enough time to solicit and respond to comments.</P>
                <P>
                    For the same reason, the Coast Guard finds that under 5 U.S.C. 553(d)(3), good cause exists for making this rule effective less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD1">III. Discussion of the Rule</HD>
                <P>This rule establishes a safety zone from noon through 4 p.m. on July 21, 2026. The safety zone will encompass all waters extending 100 yards from Pier 66, Elliott Bay, Seattle, Washington within a box encompassed by the points, 47°36.719′ N, 122°21.099′ W; 47°36.682′ N, 122°21.149′ W; 47°36.514′ N, 122°20.865′ W; and 47°36.552′ N, 122°20.814′ W. This action is being taken to provide for the safety of life on navigable waterways during this event. Vessels and persons will not be allowed to enter the zone during this time, unless authorized by the COTP.</P>
                <HD SOURCE="HD1">IV. Regulatory Analyses</HD>
                <P>We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analysis based on a number of these statutes and Executive orders.</P>
                <HD SOURCE="HD2">A. Impact on Small Entities</HD>
                <P>The regulatory flexibility analysis provisions of the Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, do not apply to rules that are not subject to notice and comment. Because the Coast Guard has, for good cause, waived the notice and comment requirement that would otherwise apply to this rulemaking, the Regulatory Flexibility Act's flexibility analysis provisions do not apply here.</P>
                <P>
                    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), if this rule will affect your small business, organization, or governmental jurisdiction and you have questions, contact the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Small businesses may send comments to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards by calling 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">B. 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">C. Federalism and Indian Tribal Governments</HD>
                <P>We have analyzed this rule under Executive Order 13132, Federalism, and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in that Order.</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 
                    <PRTPAGE P="45646"/>
                    responsibilities between the Federal Government and Indian tribes.
                </P>
                <HD SOURCE="HD2">D. Unfunded Mandates Reform Act</HD>
                <P>As required by The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538), the Coast Guard certifies that this rule will not result in an annual expenditure of $100,000,000 or more (adjusted for inflation) by a State, local, or tribal government, in the aggregate, or by the private sector.</P>
                <HD SOURCE="HD2">E. 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 
                    <E T="03">et seq.</E>
                    ), 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.
                </P>
                <P>This rule is a safety zone. 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.</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; DHS Delegation No. 00170.1, Revision No. 01.4.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>2. Add § 165.T13-0946 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 165.T13-0946 </SECTNO>
                        <SUBJECT>Safety Zone; Pier 66, Elliot Bay, Seattle, WA.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Location.</E>
                             The following area is a safety zone: all waters extending 100 yards from Pier 66, Elliott Bay, Seattle, Washington within a box encompassed by the points, 47°36.719′ N, 122°21.099′ W; 47°36.682′ N, 122°21.149′ W; 47°36.514′ N, 122°20.865′ W; and 47°36.552′ N, 122°20.814′ W. These coordinates are based on the World Geodetic System (WGS 84)/North American Datum 83 (NAD 83).
                        </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 (COTP) Sector Puget Sound 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 on VHF-FM channel 13 or 16 or by telephone at (206) 217-6002. 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 from noon to 4 p.m. on July 21, 2026.
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Michael J. Hunt,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port, Sector Puget Sound.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14647 Filed 7-20-26; 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-2026-0859]</DEPDOC>
                <RIN>RIN 1625-AA00</RIN>
                <SUBJECT>Safety Zone; Outer Harbor, Buffalo, NY</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, Department of Homeland Security.</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 on the Outer Harbor, Buffalo, NY. The safety zone is needed to protect personnel, vessels, and the marine environment from potential hazards associated with an over water fireworks display. Entry of vessels or persons into this zone is prohibited unless specifically authorized by the Captain of the Port, Sector Eastern Great Lakes, or their designated representative.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective on August 2, 2026, from 9:15 p.m. through 10:15 p.m. local time.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view available documents go to 
                        <E T="03">https://www.regulations.gov</E>
                         and search for USCG-2026-0859.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions about this rule, contact MST1 Alexander Leatherman, Sector Eastern Great Lakes Waterways Management Division, U.S. Coast Guard; telephone 716-931-4680, or email 
                        <E T="03">D09-SMB-SECBuffalo-WWM@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">COTP Captain of the Port</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 and Authority</HD>
                <P>The Coast Guard received notification that fireworks will be launched from a point on land over the Outer Harbor, in Buffalo, NY. The Captain of the Port (COTP) Eastern Great Lakes has determined that potential hazards associated with fireworks are a safety concern for anyone within a 560-foot radius of the fireworks launch site. Therefore, the COTP is issuing this rule under the authority in 46 U.S.C. 70034, which is needed to protect personnel, vessels, and the marine environment in the navigable waters within the safety zone.</P>
                <P>Because of these potential hazards, the Coast Guard is issuing this rule without prior notice and comment. As is authorized by 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. The Coast Guard was notified of this event on June 4, 2026, but we must establish this safety zone by August 2, 2026 to protect personnel, vessels, and the marine environment. Therefore, we do not have enough time to solicit and respond to comments.</P>
                <P>
                    For the same reason, the Coast Guard finds that under 5 U.S.C. 553(d)(3), good cause exists for making this rule effective less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD1">III. Discussion of the Rule</HD>
                <P>
                    This rule establishes a safety zone from 9:15 p.m. to 10:15 p.m. on August 2, 2026. The safety zone will cover all navigable waters of the Outer Harbor in Buffalo, NY, within a 560-foot radius of the launch position at 42°52′07.70″ N, 78°53′ 01.72″ W. Vessels and persons will not be allowed to enter the zone 
                    <PRTPAGE P="45647"/>
                    during this time, unless authorized by the Captain of the Port.
                </P>
                <HD SOURCE="HD1">IV. 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.</P>
                <HD SOURCE="HD2">A. Impact on Small Entities</HD>
                <P>The regulatory flexibility analysis provisions of the Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, do not apply to rules that are not subject to notice and comment. Because the Coast Guard has, for good cause, waived the notice and comment requirement that would otherwise apply to this rulemaking, the Regulatory Flexibility Act's flexibility analysis provisions do not apply here.</P>
                <P>
                    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), if this rule will affect your small business, organization, or governmental jurisdiction and you have questions, contact the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Small businesses may send comments to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards by calling 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">B. 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">C. Federalism and Indian Tribal Governments</HD>
                <P>We have analyzed this rule under Executive Order 13132, Federalism, and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in that Order.</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">D. Unfunded Mandates Reform Act</HD>
                <P>As required by The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538), the Coast Guard certifies that this rule will not result in an annual expenditure of $100,000,000 or more (adjusted for inflation) by a State, local, or tribal government, in the aggregate, or by the private sector.</P>
                <HD SOURCE="HD2">E. 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 
                    <E T="03">et seq.</E>
                    ), 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.
                </P>
                <P>This rule is a safety zone. 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.</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; DHS Delegation No. 00170.1, Revision No. 01.4.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="33" PART="165">
                    <AMDPAR>2. Add § 165.T09-0859 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 165.T09-0859 </SECTNO>
                        <SUBJECT>Safety Zone; Outer Harbor, Buffalo, NY.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Location.</E>
                             The following area is a safety zone: All waters of the Outer Harbor in Buffalo, NY, from surface to bottom, within a 560-foot radius of 42°52′07.70″ N, 78°53′01.72″ W. These coordinates are based on the World Geodetic System (WGS 84)/North American Datum 83 (NAD 83).
                        </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 Eastern Great Lakes (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 on VHF-FM channel 16 or by telephone at (888) 230-4703. 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 from 9:15 p.m. to 10:15 p.m. on August 2, 2026.
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Matthew J. Walter,</NAME>
                    <TITLE>Captain, U.S. Coast Guard, Captain of the Port Sector Eastern Great Lakes. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14644 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Medicare &amp; Medicaid Services</SUBAGY>
                <CFR>42 CFR Part 600</CFR>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <CFR>45 CFR Parts 150, 155, and 156</CFR>
                <DEPDOC>[CMS-9883-CN2]</DEPDOC>
                <RIN>RIN 0938-AV62</RIN>
                <SUBJECT>Patient Protection and Affordable Care Act, HHS Notice of Benefit and Payment Parameters for 2027; and Basic Health Program; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Centers for Medicare &amp; Medicaid Services (CMS), Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This document corrects typographical errors in the final rule that appeared in the May 20, 2026, 
                        <E T="04">Federal Register</E>
                         titled “Patient Protection and Affordable Care Act, HHS Notice of Benefit and Payment Parameters for 2027; and Basic Health Program.”
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This correction is effective July 20, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Jeff Wu, (301) 492-4305, Rogelyn McLean, (410) 786-1524, Grace Bristol, (410) 786-8437, for general information.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <PRTPAGE P="45648"/>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>In FR Doc. 2026-10050 of May 20, 2026 (91 FR 29526) (2027 Payment Notice), there were typographical errors, technical drafting errors, and omissions that are identified and corrected in this document.</P>
                <HD SOURCE="HD1">II. Summary of Errors</HD>
                <HD SOURCE="HD2">A. Summary of Error in the Preamble</HD>
                <P>On page 29800, we are correcting an error in our discussion of the effective date of the rule by replacing the phrase “effective 30 days after publication” in third column, last paragraph, line 8, with “effective 60 days after publication”.</P>
                <HD SOURCE="HD2">B. Summary of Errors in the Regulations Text</HD>
                <P>On page 29864, we inadvertently provided erroneous amendatory instructions relating to 45 CFR 155.170 that had the unintended effect of omitting regulation text that is currently set forth at § 155.170(a)(3). We did not propose to rescind § 155.170(a)(3) in the proposed rule and did not intend to finalize its rescission in the final rule. Therefore, we correct regulation text at § 155.170(a) to reinstate the text in the currently effective version of § 155.170(a)(3), by renumbering and including it as new paragraph (a)(4).</P>
                <P>On page 29874, in amendatory instruction 24 for § 156.130(a)(2), we stated we were finalizing revisions to paragraph (a)(2), without indicating that we were specifically finalizing revisions to the introductory text to paragraph (a)(2). We correct amendatory instruction 24, line 2, by replacing the phrase “revising paragraph (a)(2)” with “revising paragraph (a)(2) introductory text.”</P>
                <HD SOURCE="HD1">III. Waiver of Proposed Rulemaking and Delay in Effective Date</HD>
                <P>
                    We ordinarily publish a notice of proposed rulemaking in the 
                    <E T="04">Federal Register</E>
                     and invite public comment on the proposed rule in accordance with 5 U.S.C. 553(b) of the Administrative Procedure Act (APA). Each notice of proposed rulemaking includes a reference to the legal authority under which the rule is proposed and the terms and substance of the proposed rule, or a description of the subjects and issues involved. Per APA section 553(b)(B), these procedures can be waived if an agency finds good cause that notice-and-comment procedure is impracticable, unnecessary, or contrary to the public interest, and incorporates a statement of the finding and the reasons therefore in the rule issued. Section 553(d)(3) of the APA allows an agency to avoid the 30-day delay in effective date when the agency finds good cause, and includes in the rule a statement of the finding and the reasons for it.
                </P>
                <P>This document does not constitute a proposed rule subject to the notice-and-comment or delayed effective date requirements under sections 553(b) and (d) of the APA, because this correcting document merely corrects typographical and technical drafting errors and omissions in the final rule. Regardless, even if this correcting document was deemed to be a proposed rule to which the notice-and-comment procedures and delayed effective date requirements applied, there is good cause to waive the requirements as following the notice-and-comment procedures and delayed effective date requirements under section 553(b) and (d) of the APA would be unnecessary and contrary to the public interest.</P>
                <P>
                    The corrections this document makes to the preamble of the final rule corrects a typographical error (91 FR 29800). In the final rule, we stated that these regulations are effective on July 20, 2026 (91 FR 29526). However, later in the final rule, we made an erroneous, more general, statement that the rule takes effect 30 days after publication in the 
                    <E T="04">Federal Register</E>
                     (which would be on June 19, 2026) (91 FR 29800). Because this document simply removes that later language from the final rule that provides an incorrect effective date, and because the final rule also contains the correct effective date, which interested parties were given notice and the opportunity to comment on, additional notice and comment on this change is unnecessary.
                </P>
                <P>
                    Moreover, the final rule is a major rule that generally must have a 60-day delayed effective date in compliance with the Congressional Review Act, 5 U.S.C. 801-808. Therefore,  notice-and-comment procedures would be unnecessary because comments provided by interested parties cannot change this statutory 60-day delayed effective date requirement.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See, for example,</E>
                          
                        <E T="03">EME Homer City Generation, L.P.</E>
                         v. 
                        <E T="03">E.P.A.,</E>
                         795 F.3d 118, 134-135 (D.C. Cir. 2015) (finding that notice and comment was unnecessary because “commentators could not have said anything during a notice and comment period that would have changed [the] fact” that the agency must impose a 60-day delated effective date.)
                    </P>
                </FTNT>
                <P>Similarly, notice and comment and a delayed effective date would be unnecessary to make the correction to amendatory instruction 24 for § 156.130(a)(2), which erroneously stated we were revising the text of paragraph (a)(2), rather than the introductory text of paragraph (a)(2) (91 FR 29874). This correction has no effect on the content or meaning of the regulation text. Additionally, if the correction were proposed and subjected to notice and comment, there would be nothing of substance on which the public could comment.</P>
                <P>Following notice-and-comment procedures and the delayed effective date rule to correct the amendatory instructions for the regulatory text at § 155.170 also is unnecessary because this document simply corrects the inadvertent omission of an amendatory instruction to renumber paragraph (a)(3) of the currently effective version of § 155.170(a)(3) as paragraph (a)(4).</P>
                <P>Furthermore, delaying the correction to § 155.170, to reinstate the text in the currently effective version of § 155.170(a)(3), to complete notice-and-comment procedures is contrary to the public interest because it would have the effect of allowing regulatory text that was not adopted in compliance with the APA to “remain on the books,” while a new rule is proposed and finalized. Without this correction, the final rule effectively rescinds the requirements under the currently effective version of paragraph (a)(3), without that rescission being proposed or otherwise subjected to notice-and-comment rulemaking procedures under section 553(b) of the APA. Thus, this correction will make the regulatory text consistent with the preamble discussions in the proposed and final rules, resulting in a regulation that reflects the policy subjected to notice-and-comment procedures and adopted in the final rule in compliance with the APA. Correcting the errors in the final rule without undue delay will also mitigate any confusion and uncertainty stemming from these errors. Declining to make these corrections now would be contrary to the public's interest in receiving fair and timely notice of the regulatory requirements to which they may be subject.</P>
                <P>The corrections made through this correcting document resolve inadvertent technical drafting errors so that the final rule accurately reflects the policies adopted therein pursuant to the APA's notice-and-comment rulemaking requirements. Therefore, even if the corrections in this document were deemed to be subject to the notice-and-comment and effective date requirements under section 553 of the APA, there would be good cause to waive the requirements.</P>
                <HD SOURCE="HD1">IV. Correction of Errors</HD>
                <P>
                    In FR Doc. 2026-10050 of May 20, 2026 (91 FR 29526), make the following corrections:
                    <PRTPAGE P="45649"/>
                </P>
                <HD SOURCE="HD2">A. Correction of Error in the Preamble</HD>
                <P>1. On page 29800, third column, last paragraph, line 8, the phrase “effective 30 days after publication” is corrected to read “effective 60 days after publication”.</P>
                <HD SOURCE="HD2">B. Correction of Errors in the Regulation Text</HD>
                <REGTEXT TITLE="45" PART="155">
                    <P>1. On page 29864, third column, lines 1 and 2, amendatory instruction 9 for § 155.170, and lines 3 through 42, and the accompanying regulation text, are corrected to read as follows:</P>
                    <AMDPAR>9. Section 155.170 is amended by—</AMDPAR>
                    <AMDPAR>a. Revising paragraphs (a)(1) and (2);</AMDPAR>
                    <AMDPAR>b. Redesignating paragraph (a)(3) as paragraph (a)(4); and</AMDPAR>
                    <AMDPAR>c. Adding a new paragraph (a)(3).</AMDPAR>
                    <P>The revisions and addition read as follows:</P>
                    <SECTION>
                        <SECTNO>§ </SECTNO>
                        <SUBJECT>155.170 Additional required benefits.</SUBJECT>
                        <P>(a) * * *</P>
                        <P>(1) A State may require a QHP to offer benefits in addition to the essential health benefits. For plan years beginning before January 1, 2028, a benefit required by State action taking place on or before December 31, 2011, a benefit required by State action for purposes of compliance with Federal requirements, or a benefit covered in the State's EHB-benchmark plan is considered an EHB. A benefit required by State action taking place on or after January 1, 2012, other than for purposes of compliance with Federal requirements, that is not a benefit covered in the State's EHB-benchmark plan is considered in addition to the essential health benefits.</P>
                        <P>(2) For plan years beginning on or after January 1, 2028, a State may require a QHP to cover benefits in addition to the essential health benefits, which are any State-required benefits that are:</P>
                        <P>(i) Required by a State action taking place after December 31, 2011;</P>
                        <P>(ii) Applicable to the small group and/or individual markets;</P>
                        <P>(iii) Specific to required care, treatment, or services; and</P>
                        <P>(iv) Not required by State action for purposes of compliance with Federal requirements.</P>
                        <P>(3) A State must make payments in accordance with paragraph (b) of this section to defray the cost of any State-required benefits in addition to the EHB.</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <REGTEXT>
                    <SECTION>
                        <SECTNO>§ 156.130</SECTNO>
                        <SUBJECT>[Corrected]</SUBJECT>
                    </SECTION>
                    <AMDPAR>2. On page 29874, first column, last paragraph, amendatory instruction 24 for § 156.130, line 2, the phrase “revising paragraph (a)(2)” is corrected to read “revising paragraph (a)(2) introductory text.”</AMDPAR>
                </REGTEXT>
                <SIG>
                    <NAME>Liesl I. Fowler,</NAME>
                    <TITLE>Executive Secretary to the Department, Department of Health and Human Services.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14709 Filed 7-17-26; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 4169-69-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
                <CFR>47 CFR Part 1</CFR>
                <DEPDOC>[MD Docket Nos. 25-190, 24-85; FCC 26-43; FR ID 356762]</DEPDOC>
                <SUBJECT>Review of the Commission's Assessment and Collection of Regulatory Fees for Fiscal Year 2025</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Communications Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Denial of petition for reconsideration.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In this document, the Federal Communications Commission denies the petition for partial reconsideration filed by Kinéis challenging the 
                        <E T="03">FY 2025 Regulatory Fees Report and Order.</E>
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective July 21, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Patrick Brogan, Office of Economics and Analytics, 
                        <E T="03">Patrick.Brogan@fcc.gov</E>
                         or 202-418-7378
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This is a summary of the Commission's Order on Reconsideration in MD Docket Nos. 25-190, 24-85, FCC 26-43, adopted on June 23, 2026, and released on June 24, 2026. The full text of this document is available at 
                    <E T="03">https://docs.fcc.gov/public/attachments/FCC-26-43A1.pdf.</E>
                     To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an email to 
                    <E T="03">fcc504@fcc.gov</E>
                     or call the Consumer and Governmental Affairs Bureau at 202-418-0530 (voice).
                </P>
                <P>
                    <E T="03">Final Regulatory Flexibility Analysis.</E>
                     The Regulatory Flexibility Act of 1980, as amended (RFA), requires that an agency prepare a regulatory flexibility analysis for notice and comment rulemakings, unless the agency certifies that “the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.” Accordingly, in the 
                    <E T="03">FY 2025 Regulatory Fees Report and Order,</E>
                     the Commission prepared a final Regulatory Flexibility Analysis (FRFA) concerning the potential impact of rule and policy changes contained in the 
                    <E T="03">FY 2025 Regulatory Fees Report and Order.</E>
                     We received no petitions for reconsideration of that Final Regulatory Flexibility Analysis. In this present Order on Reconsideration, the Commission promulgates no additional final rules. Our present action is, therefore, not an RFA matter.
                </P>
                <P>
                    <E T="03">Congressional Review Act.</E>
                     The Commission will not send a copy of this Order on Reconsideration to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A), because no rule was adopted or amended.
                </P>
                <P>
                    <E T="03">Final Paperwork Reduction Act of 1995 Analysis.</E>
                     This document does not contain any proposed new or substantively modified information collections subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
                </P>
                <HD SOURCE="HD1">Synopsis</HD>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>
                    1. In this Order on Reconsideration, we deny the petition for partial reconsideration filed by Kinéis challenging the 
                    <E T="03">FY 2025 Regulatory Fees Report and Order,</E>
                     90 FR 43284 (September 8, 2025). For the reasons presented below, we deny the petition for reconsideration and reject Kinéis's request to modify the Commission's determination to assess regulatory fees on all holders of space station authorizations as of the start of the fiscal year rather than only the holders of space station authorizations that have been certified to be operational as of the start of the fiscal year.
                </P>
                <HD SOURCE="HD1">II. Background</HD>
                <HD SOURCE="HD2">A. Space and Earth Station Regulatory Fee Rulemaking Proceeding</HD>
                <P>2. In 2024, the Commission initiated a rulemaking proceeding to seek comment on possible changes to the then existing methodology for assessing regulatory fees on space and earth stations. Among other proposals, the Commission proposed to assess regulatory fees on all authorized earth or space stations as of the start of the fiscal year, which commences on October 1 and ends on September 30th. At the time, regulatory fees for earth and space stations were only assessed for stations that were certified as operational as of the start of the relevant fiscal year.</P>
                <P>
                    3. In the 
                    <E T="03">FY 2024 Space and Earth Station Regulatory Fees NPRM,</E>
                     89 FR 20582 (March 25, 2024), the Commission set forth numerous reasons 
                    <PRTPAGE P="45650"/>
                    why such a change in methodology would be reasonable. First, the Commission tentatively concluded that there was no statutory bar to assessing regulatory fees on authorized, but not yet operational, space and earth stations. The Commission observed that section 9(d) of the Act, 47 U.S.C. 159(d), explicitly gives the Commission authority to adjust its regulatory fees by rule if it determines that the schedule of fees requires amendment, and that Congress deleted the original textual language of section 9 that provided the basis for assessing space station regulatory fees on operational stations. Second, it observed that both license holders and station operators granted authority to access the market in the United States benefit from substantial full time equivalent (FTE) resources. The Commission explained that one FTE, a “Full Time Equivalent” or “Full Time Employee,” is a unit of measure equal to the work performed annually by a full-time person (working a 40-hour workweek for a full year) assigned to the particular job, and subject to agency personnel staffing limitations established by the U.S. Office of Management and Budget. Specifically, FTE resources were used to review and grant the respective application or petition for market access as well as to protect the benefits conferred by the authorization, such as use of spectrum and orbital resources and protection from interference. In addition, the Commission observed that if regulatory fees were assessed only when space stations become operational, rather than when they are authorized, then some authorization holders would not be assessed regulatory fees associated with FTE work for potentially many years or perhaps never. As a result, space stations that become operational earlier than other licensed stations would bear the entire burden of regulatory work done on behalf of all similarly situated entities. The Commission noted that regulatory fees are a zero-sum situation, so any decrease to the fees paid by one category of regulatees necessitates an increase in fees paid by other fee payors.
                </P>
                <P>
                    4. In proposing the change to its methodology, the Commission noted that it should not present a challenge to administer because the date a license or market access is issued is a matter of public record and contained in its licensing database. The 
                    <E T="03">FY 2024 Space and Earth Station Regulatory Fees NPRM</E>
                     acknowledged that the proposal could increase the costs to the satellite operator at the initial funding phases and sought comment on this and other potential collateral effects of the proposal and how the Commission should consider them.
                </P>
                <P>
                    5. In February 2025, the Commission released the 
                    <E T="03">FY 2024 Space and Earth Station Regulatory Fees FNPRM,</E>
                     90 FR 11918 (March 13, 2025), seeking additional comment on the proposal to assess regulatory fees on all holders of space station authorizations as of the start of the fiscal year, along with other matters. The Commission tentatively concluded that the concerns raised regarding costs, financial risks, and the impact on innovation did not outweigh the need to assess regulatory fees on the same class who benefit from the Commission's FTE efforts. The Commission stated that while it understood the desire of interested parties to delay assessing regulatory fees on a satellite operator until the system becomes operational and generates revenues, it did not believe that this continuing with such an approach best comported with the requirements of section 9 of the Communications Act, 47 U.S.C. 159, nor was it fair to other fee payors in the same regulatory fee category. The Commission further noted that fairness is one of the overarching goals in implementing regulatory fee system.
                </P>
                <P>
                    6. In June 2025, the Commission adopted the 
                    <E T="03">Space and Earth Station Regulatory Fees Third Report and Order,</E>
                     90 FR 29760 (July 7, 2025), which, among other changes, adopted the proposal to assess regulatory fees on all authorized earth or space stations as of the start of the fiscal year, rather than only on those certified as operational as of the start of the fiscal year. That is, the Commission changed the existing methodology from assessing fees only after notification that the station is operational to assessing fees on all stations authorized by license or grant of market access as of the start of the fiscal year. In doing so, the Commission observed that significant Commission resources, expressed in Space Bureau FTEs, are involved with the review and grant of space and earth station licenses. The Commission noted that under the prior methodology, fee payors with systems that become operational earlier than other licensed systems bear the entire fee burden of regulatory work done on behalf of all regulated systems. Moreover, even if a system never becomes operational, the licensee or market access grant recipient nonetheless benefited from the FTE burdens. The Commission also noted that, although the term of a license does not commence until the space station or system of space stations is operational, the benefits and protections provided by a license or market access grant, such as the ability to use spectrum and orbital resources and to preclude others from using those same resources, accrue upon authorization or grant. In such an instance, the Commission would not be able to recover the FTE burdens associated with regulating the licensed space or earth station, and other licensees with operational space or earth stations would have to bear all the costs of such regulation. The Commission also observed that, given the bespoke nature of many satellite systems, FTE resources are used by the industry before, during, and after an application is filed. Finally, the Commission concluded that assessing regulatory fees on authorized, not just operational stations, broadens the base of regulatory fee payors, creating a more fair methodology. The Commission also observed that broadening the base to include authorized, but not operational, stations more accurately allocates FTE burdens.
                </P>
                <P>
                    7. In August 2025, the Commission adopted a schedule to assess and collect regulatory fees for FY 2025 by September 30, 2025. In doing so, the Commission implemented the amendments to the fee methodology that were adopted in the 
                    <E T="03">Space and Earth Station Regulatory Fees Third Report and Order,</E>
                     including the change to assessing regulatory fees on all authorized space stations as of the start of the fiscal year, rather than only on stations that had become operational as of the start of the fiscal year. The Commission specifically declined a request by petitioner Kinéis to interpret “authorized stations” solely as stations “that have received unconditional permission to provide service without the need for further agency action.” The Commission found that this request effectively was an attempt to revisit whether operational status should be the basis for assessing regulatory fees on a space station, although the Commission had just decided in June 2025 that the operational status of a space or earth station should no longer be the deciding factor of whether regulatory fees should be assessed. The Commission reiterated that significant FTE burdens are involved with the licensing of space and earth stations, even before a station becomes operational, and that if an authorized space station never becomes operational, then the FTE burdens associated with oversight and regulating such space stations would never be recovered and would have to be borne by stations that are operational. The Commission found that these considerations equally apply to space 
                    <PRTPAGE P="45651"/>
                    stations that are authorized, but subject to a condition that needs to be fulfilled by the licensee or grantee prior to becoming operational, or prior to accessing the U.S. market in the case of a non-U.S. licensed space station. The Commission also noted that assessment of regulatory fees could provide an incentive for licensees to resolve any aspects of their application that are within their control prior to action on the application, or as quickly as possible if the application is granted with conditions subject to the licensee's control.
                </P>
                <P>
                    8. The Commission also pointed to the prior finding in the 
                    <E T="03">Space and Earth Station Regulatory Fees Third Report and Order</E>
                     that assessing regulatory fees on authorized stations broadens the base of regulatory fee payors, spreading the recovery of regulatory fees from all licensees and grantees that benefit from the Space Bureau FTE's licensing and regulatory activities, and potentially lowering the per unit regulatory fee burden by increasing the number of units on which fees are assessed. The Commission found that this rationale for adopting regulatory fees on authorized stations would be undermined by not assessing regulatory fees on space stations that are authorized, but are subject to conditions that need to be fulfilled prior to commencing operations. Not assessing regulatory fees until all aspects of an application are fully resolved could effectively remove a significant number of current fee payors from regulatory fee assessments. The Commission noted that all the NGSO large constellation fee payors have not received unconditional authorization for all aspects of their applied-for systems. If they are not assessed regulatory fees, their share of NGSO space station regulatory fees would need to be paid by other NGSO space station fee payors. Finally, the Commission found that requiring Commission staff to determine whether the conditions placed on every space and earth station grant prevent the licensee from commencing operations risks being subjective and administratively burdensome.
                </P>
                <HD SOURCE="HD2">B. Kinéis Petition for Reconsideration</HD>
                <P>
                    9. Kinéis sought partial reconsideration of the 
                    <E T="03">FY 2025 Report and Order.</E>
                     Since no party sought reconsideration of the Commission's determination in the 
                    <E T="03">Space and Earth Station Regulatory Fees Third Report and Order</E>
                     to assess regulatory fees on all authorized earth stations, rather than on earth stations certified as operational at the start of the relevant fiscal year, this reconsideration focuses solely on the Commission's determination to assess regulatory fees on authorized, rather than operational, space stations. No other party has sought reconsideration on the Commission's determinations regarding the assessment of regulatory fees for FY 2025. The Commission released a public notice inviting comment on the Kinéis Petition, which was also published in the 
                    <E T="04">Federal Register</E>
                    . No parties filed oppositions in response to Kinéis's petition.
                </P>
                <HD SOURCE="HD1">III. Discussion</HD>
                <P>
                    10. 
                    <E T="03">Standard of Review.</E>
                     Under § 1.429 of the Commission's rules, any interested person may petition for reconsideration of a final action in a rulemaking proceeding. Our rules require that a petition for reconsideration must state with particularity the respects in which the action taken should be changed, and must be filed within 30 days from the date of public notice of such action. In addition, a petition for reconsideration cannot rely on facts or arguments that were not previously presented to the Commission, except under enumerated conditions.
                </P>
                <HD SOURCE="HD2">A. The Commission Sufficiently Considered the Concerns of Kinéis</HD>
                <P>11. Kinéis argues that the Commission did not adequately address all aspects of the concerns raised regarding the assessment of regulatory fees on space stations that are “provisionally authorized,” but that remain subject to a “critical” condition on their authorization that would preclude the licensee from initiating service without further agency action. Kinéis asserts that the Commission failed to consider fully all aspects of the financial burdens that its definition of “authorized” places upon small, start-up operators. It states that the Commission failed to acknowledge that a license or grant of market access, without certainty that the licensee or grantee will be able to satisfy all conditions of the grant and be able to access the market, is likely to have a significant detrimental effect on the licensee or grantee. Instead, Kinéis broadly argues that the Commission's decision to assess fees on space stations authorized as of the start of the fiscal year, but not yet operational, reflected a bias towards maximizing fee collections and avoiding the need for administrative decisions, while discounting the significant financial impact on licensees whose authorizations “remain in regulatory limbo” absent grant of unconditional authority and who may lack the resources to pay regulatory fees without an unrestricted license. Kinéis claims that the Commission focused solely on the administrative burden of having to determine whether the conditions placed on every earth or space station grant prevent the licensee (or grantee) from commencing operations, which it alleges is not a valid concern.</P>
                <P>
                    12. We disagree that the Commission failed to consider sufficiently Kinéis's concerns. In the 
                    <E T="03">FY 2025 Report and Order,</E>
                     the Commission explained its reasoning for declining to interpret “authorized stations” solely as stations “that have received unconditional permission to provide service without the need for further agency action” as requested by Kinéis. We disagree that the Commission failed to acknowledge the “significant detrimental effect” that assessing regulatory fees on authorized stations would have on fee payors that are conditionally licensed or granted market access, without certainty the licensee or grantee will be able to satisfy all the conditions. To the contrary, the Commission recognized that assessing a regulatory fee on any station—including those authorized but subject to conditions—involves a financial burden for a regulatory fee payor. However, as the Commission correctly observed, the Commission changed the methodology used to assess regulatory fees from one based on the operational status of the space station to whether the space station was authorized, since significant FTE burdens are involved with the licensing of space stations, even before a station becomes operational. That is, the Commission decided to assess regulatory fees once an applicant becomes a licensee or grantee and receives the benefits of regulation (that is, benefits from the FTE burdens that went into reviewing and granting the license and that go into oversight and regulation of the licensee after the license is granted). Congress has prescribed a method for the Commission to collect the full annual salaries and expenses (S&amp;E) appropriation by keying our regulatory fee assessment to the relevant FTE burden. The methodology for assessing regulatory fees must “reflect the full-time equivalent number of employees within the bureaus and offices of the Commission, adjusted to take into account factors that are reasonably related to the benefits provided to the payor of the fee by the Commission's activities.” FTEs within a bureau are not assigned to specific fee categories “by rote or at random, but rather in a manner that reflects the time spent by FTEs on a regulatory fee category, which is in itself a reflection of `benefit' to the fee category.” As the 
                    <PRTPAGE P="45652"/>
                    Commission has explained before, section 9, 47 U.S.C. 159, is clear that regulatory fee assessments are based on the burden imposed on the Commission, not benefits realized by regulatees. Thus, the fee assigned to each regulatory fee category relates to the FTE burden associated with oversight and regulation of each regulatory fee category by the relevant core bureaus.
                </P>
                <P>
                    13. Because the annual assessment of regulatory fees is a zero-sum game, the 
                    <E T="03">FY 2025 Report and Order</E>
                     explained that adopting Kinéis's proposal would result in an increased financial burden on other regulatory fee payors. As the Commission has previously found, “assessing regulatory fees on authorized stations broadens the base of regulatory fee payors, spreading the recovery of fees from all licensees and grantees that benefit from the Space Bureau's licensing and regulatory activities, and potentially lowering the per unit regulatory fee burden by increasing the number of units on which fees are assessed.” We are unpersuaded by Kinéis's argument that such entities should be excluded from the base of regulatory fee payors. Moreover, to the extent Kinéis argues that it does not have an ability to pay regulatory fees, we remind Kinéis of existing processes to seek a waiver, reduction, or deferral of regulatory fees to mitigate the impact of regulatory fees on operators when paying such fees would cause a hardship. Section 9A(d) permits the Commission to waive, reduce, or defer payment of a regulatory fee and associated interest charges and penalties for good cause. As the Commission has repeatedly noted, however, it interprets this provision narrowly to permit only those waivers “unambiguously articulating `extraordinary circumstances' outweighing the public interest in recouping the cost of the Commission's regulatory services for a particular regulatee.”
                </P>
                <P>14. Furthermore, under Kinéis's proposal, it is more than an “inconvenience” to require the Commission to assess whether license conditions provide certainty that a licensee or grantee can operate or enter the U.S. market under the license or grant. Virtually every space station license or market access grant is subject to conditions. In proposing regulatory fees, the Commission must determine the number of units in a category over which regulatory fees are to be assessed. The fewer units, the greater the regulatory fee per unit. As the Commission stated, requiring Commission staff to determine whether conditions placed on every space (and earth) station license or market access grant would prevent the licensee from commencing operations risks being subjective and administratively burdensome. The Commission also noted that all regulatory fee payors in the large constellation non-geostationary orbit (NGSO) fee category have not received unconditional authorizations for all aspects of their applied-for systems, so other NGSO space station fee payors would have to pay more regulatory fees if those large constellation fee payers were no longer assessed regulatory fees under Kinéis's proposal. The fact that it might be theoretically possible to analyze what constitutes a “critical” condition on an authorization that would preclude the licensee from initiating service without further agency action to avoid this administrative burden, does not change the fact that change would still be more difficult to administer than the proposal adopted. Moreover, such a proposal does not appear to best comport with the statute because it fails to ensure that regulatory fees be paid by all entities holding authorizations that benefit from the Space Bureau's licensing and regulatory activities. Furthermore, it undermines efforts to potentially lower the per unit regulatory fee burden by increasing the number of units on which fees are assessed. As such, we affirm that the concerns stated by the Commission were valid.</P>
                <P>15. Kinéis also seeks reconsideration based on the alleged failure of the Commission to address potential alternatives that Kinéis suggests would allow regulatees to have a license or grant of market access but not pay regulatory fees. We note that the alternatives proposed by Kinéis originate from a fundamental misunderstanding of the basis for assessing regulatory fees. Kinéis's alternatives seek to address whether a license is final or subject to additional action by the licensee and the Commission, and whether it is fair to assess regulatory fees while these additional actions are yet to be taken. This misses the point entirely. As discussed above, regulatory fees are keyed to the FTE burden. Even if a license is conditional and additional steps must be taken, by the licensee or the Commission, before the licensee can operate a space station under the license, there is still a license, and the licensee or authorization holder has benefitted, and continues to benefit from Space Bureau FTE resources used to review and grant licenses in the category of the fee payor and continue to have regulatory oversight over licenses in the payor's fee category.</P>
                <P>16. In sum, we reject the alternatives proposed by Kinéis as fundamentally incorrect in both fact and law when Kinéis contends that the benefits of the regulatory process are manifested only once unconditional approval is received, and the Commission should not assess regulatory fees premised on these benefits absent “unfettered” authorization. Not only does this ignore the longstanding regulatory fee framework required by Congress in keying our regulatory fee assessment to the relevant FTE burden, but it also improperly focuses on the fee assessment of a particular regulatee, rather than the category of fee payors as a whole. Accordingly, we reject the alternatives posed by Kinéis.</P>
                <HD SOURCE="HD2">B. Recent Statements in a Notice of Proposed Rulemaking Do Not Support Reconsideration</HD>
                <P>
                    17. Kinéis argues that its position that an authorization is not final when conditioned on the future submission of an orbital debris mitigation plan is supported by language in the 
                    <E T="03">Space Modernization NPRM</E>
                     adopted by the Commission in October 2025. In the 
                    <E T="03">Space Modernization NPRM,</E>
                     the Commission sought comment on whether to allow the grant of a conditional space station authorization where an applicant did not provide an orbital debris mitigation plan, but instead certified its intent to comply with the Commission's orbital debris mitigation rules in a subsequent filing. The conditionally authorized applicant would then be required to submit a compliant orbital debris mitigation plan or a modification application no later than six months prior to integration of satellites into a launch vehicle. If the applicant files for a modification or seeks a waiver of Commission rules instead of submitting a fully compliant proposal, the conditional grant would be rescinded. Kinéis argues that the proposal in the NPRM supports its position that a “conditionally approved applicant” has not yet been authorized.
                </P>
                <P>
                    18. As an initial matter, we considered this argument even though it was not previously presented to the Commission because the 
                    <E T="03">Space Modernization NPRM</E>
                     was released after the August 
                    <E T="03">FY 2025 Report and Order.</E>
                     Even so, we do not find that the statements in the 
                    <E T="03">Space Modernization NPRM</E>
                     support reconsideration. The Commission's statements in the 
                    <E T="03">Space Modernization NPRM</E>
                     about the creation of new types of grants and processes reflect things that may or may not come to pass. Should the Commission adopt changes to its regulation of space and earth stations that impact the FTE 
                    <PRTPAGE P="45653"/>
                    resources allocated to the relevant regulatory fee categories and methodology used for such fee categories, those changes would be appropriately addressed in a future regulatory fees rulemaking rather than at this time in a reconsideration of a past regulatory fee rulemaking. As the Commission has repeatedly explained, apportionment of amounts to be collected from each fee category within a Bureau or Office based on FTE resources allocated is not required to be calculated with scientific precision. In plain terms, whether any of the proposed changes, if adopted, will materially alter FTE resources devoted to the oversight and regulation of space stations sufficient to merit the Commission proposing changes to fee categories or methodologies is premature at this time. As such, we do not find that the statements in the 
                    <E T="03">Space Modernization NPRM</E>
                     support reconsideration of the Commission's decision.
                </P>
                <HD SOURCE="HD1">IV. Ordering Clauses</HD>
                <P>
                    19. Accordingly, 
                    <E T="03">it is ordered</E>
                     that pursuant to sections 1, 4(i), 4(j), and 405 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i) 154(j), 155(c), and 405, and § 1.429(b) of the Commission's rules, 47 CFR 1.429(b), the Petition for Reconsideration filed on November 14, 2025 by Kinéis 
                    <E T="03">is denied.</E>
                </P>
                <SIG>
                    <FP>Federal Communications Commission.</FP>
                    <NAME>Marlene Dortch,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14673 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6712-01-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <CFR>49 CFR Chapter III</CFR>
                <DEPDOC>[Docket No. FMCSA-2025-0754]</DEPDOC>
                <RIN>RIN 2126-AC75</RIN>
                <SUBJECT>General Technical, Organizational, Conforming, and Correcting Amendments to the Federal Motor Carrier Safety Regulations</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>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA amends its regulations by making technical corrections throughout the Federal Motor Carrier Safety Regulations (FMCSR). The Agency makes minor changes to correct inadvertent errors and omissions, remove or update obsolete references, and improve the clarity and consistency of certain regulatory provisions. FMCSA also makes a change to its rules of organization, procedures, and practice. Because the rule does not impose any new material requirements or increase compliance obligations, it is issued without prior notice and opportunity for comment, pursuant to the good cause exception in the Administrative Procedure Act (APA).</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective July 21, 2026. The incorporation by reference of the material described in the rule is approved by the Director of the Federal Register as of July 21, 2026.</P>
                    <P>Petitions for Reconsideration of this final rule must be submitted to the FMCSA Administrator no later than August 20, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ghita Palmer, Regulatory Development Division, Office of Policy, FMCSA, 1200 New Jersey Avenue SE, Washington, DC 20590-0001; (202) 366-1144; 
                        <E T="03">ghita.palmer@dot.gov.</E>
                          
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">APA Administrative Procedure Act</FP>
                    <FP SOURCE="FP-1">CDC U.S. Center for Disease Control and Prevention</FP>
                    <FP SOURCE="FP-1">CDL Commercial Driver's License</FP>
                    <FP SOURCE="FP-1">CDLIS Commercial Driver's License Information System</FP>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">CMV Commercial Motor Vehicle</FP>
                    <FP SOURCE="FP-1">DOT Department of Transportation</FP>
                    <FP SOURCE="FP-1">E.O. Executive Order</FP>
                    <FP SOURCE="FP-1">FHWA Federal Highway Administration</FP>
                    <FP SOURCE="FP-1">FMCSA Federal Motor Carrier Safety Administration</FP>
                    <FP SOURCE="FP-1">FMCSR Federal Motor Carrier Safety Regulations</FP>
                    <FP SOURCE="FP-1">GVWR Gross vehicle weight rating</FP>
                    <FP SOURCE="FP-1">IC Information collection</FP>
                    <FP SOURCE="FP-1">ICC Interstate Commerce Commission</FP>
                    <FP SOURCE="FP-1">ICCTA ICC Termination Act of 1995</FP>
                    <FP SOURCE="FP-1">IT Information technology</FP>
                    <FP SOURCE="FP-1">LCV Longer combination vehicle</FP>
                    <FP SOURCE="FP-1">MCSIA Motor Carrier Safety Improvement Act of 1999</FP>
                    <FP SOURCE="FP-1">MVR Motor vehicle records</FP>
                    <FP SOURCE="FP-1">NARA National Archives and Records Administration</FP>
                    <FP SOURCE="FP-1">OFR Office of the Federal Register</FP>
                    <FP SOURCE="FP-1">OMB Office of Management and Budget</FP>
                    <FP SOURCE="FP-1">PIA Privacy Impact Analysis</FP>
                    <FP SOURCE="FP-1">PTA Privacy Threshold Assessment</FP>
                    <FP SOURCE="FP-1">SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users</FP>
                    <FP SOURCE="FP-1">SDLAs State Driver's Licensing Agencies</FP>
                    <FP SOURCE="FP-1">SPE Skills performance evaluation</FP>
                    <FP SOURCE="FP-1">UMRA Unfunded Mandates Reform Act of 1995</FP>
                    <FP SOURCE="FP-1">U.S.C. United States Code</FP>
                </EXTRACT>
                <HD SOURCE="HD1">II. Legal Basis for the Rulemaking</HD>
                <P>
                    Congress delegated certain powers to regulate interstate commerce to DOT in numerous pieces of legislation, most notably in section 6 of the Department of Transportation Act (DOT Act) (Pub. L. 89-670, 80 Stat. 931, 937, Oct. 15, 1966). Section 6 of the DOT Act transferred to DOT the authority of the former Interstate Commerce Commission (ICC) to regulate the qualifications and maximum hours of service of employees, the safety of operations, and the equipment, of motor carriers in interstate commerce (80 Stat. 939; 
                    <E T="03">see also</E>
                     49 U.S.C. 31502(b)). This authority, first granted to the ICC in the Motor Carrier Act of 1935 (Pub. L. 74-255, 49 Stat. 543, Aug. 9, 1935), now appears in 49 U.S.C. chapter 315. The regulations issued under this authority, as well as subsequently enacted laws, became known as the FMCSR and are codified at 49 CFR parts 350-399. The administrative powers to enforce chapter 315 (codified in 49 U.S.C. chapter 5) were also transferred from the ICC to DOT in 1966, assigned first to the Federal Highway Administration (FHWA), and then to FMCSA. The FMCSA Administrator, whose powers and duties are set forth in 49 U.S.C. 113, has been delegated authority by the Secretary of Transportation (the Secretary) under 49 CFR 1.81 to prescribe regulations and to exercise authority over and with respect to any personnel within the organization, and under 49 CFR 1.87 to carry out the motor carrier functions vested in the Secretary.
                </P>
                <P>
                    Between 1984 and 1999, enforcement of the FMCSR, the Hazardous Materials Regulations, and the Commercial Regulations was added to FHWA's authority. The statutes granting these authorities include the Motor Carrier Safety Act of 1984 (Pub. L. 98-554, Title II, 98 Stat. 2832, Oct. 30, 1984), codified at 49 U.S.C. chapter 311, subchapter III; the Commercial Motor Vehicle Safety Act of 1986 (Pub. L. 99-570, Title XII, 100 Stat. 3207-170, Oct. 27, 1986), codified at 49 U.S.C. chapter 313; the Hazardous Materials Transportation Uniform Safety Act of 1990, as amended (Pub. L. 101-615, 104 Stat. 3244, Nov. 16, 1990), codified at 49 U.S.C. chapter 51; the Omnibus Transportation Employee Testing Act of 1991 (Pub. L. 102-143, Title V, 105 Stat. 917, 952, Oct. 28, 1991), codified at 49 U.S.C. 31306; the ICC Termination Act of 1995 (ICCTA) (Pub. L. 104-88, 109 Stat. 803, Dec. 29, 1995), codified at 49 U.S.C. chapters 131-149; and the Transportation Equity Act for the 21st 
                    <PRTPAGE P="45654"/>
                    Century (Pub. L. 105-178, 112 Stat. 107, June 9, 1998).
                </P>
                <P>
                    The Motor Carrier Safety Improvement Act of 1999 (MCSIA), Public Law 106-159, 113 Stat. 1748, Dec. 9, 1999, established FMCSA as a new operating administration within DOT, effective January 1, 2000, and transferred authorities specifically related to commercial motor vehicle safety to FMCSA. Accordingly, since that time the motor carrier safety, and certain commercial, responsibilities previously assigned to both the ICC and FHWA have been the jurisdiction of FMCSA. These responsibilities also include regulations relating to section 18 of the Noise Control Act of 1972, codified at 42 U.S.C. 4917, which were originally assigned to the Secretary of Transportation (Pub. L. 92-574, 86 Stat. 1249, Oct. 27, 1972) and delegated to FHWA (39 FR 7791, Feb. 28, 1974), and are now the jurisdiction of FMCSA, as codified at 49 U.S.C. 113(f)(1).
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Responsibility for the regulations related to section 18 of the Noise Control Act was given to FMCSA by Congress in section 101 of the Motor Carrier Safety Improvement Act (Pub. L. 106-159, 113 Stat. 1748, 1750, Dec. 9, 1999).
                    </P>
                </FTNT>
                <P>Congress subsequently expanded, modified, and amended FMCSA's authority in the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Pub. L. 107-56, 115 Stat. 272, Oct. 26, 2001); the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Pub. L. 109-59, 119 Stat. 1144, Aug. 10, 2005); the SAFETEA-LU Technical Corrections Act of 2008 (Pub. L. 110-244, 122 Stat. 1572, June 6, 2008); the Moving Ahead for Progress in the 21st Century Act (Pub. L. 112-141, 126 Stat. 405, July 6, 2012); Fixing America's Surface Transportation Act (Pub. L. 114-94, 129 Stat. 1312, Dec. 4, 2015); and the Infrastructure Investment and Jobs Act (Pub. L. 117-58, 135 Stat. 429, Nov. 15, 2021).</P>
                <P>The regulations amended by this rule are based on the statutes detailed above. Generally, the legal authority for each provision being amended was explained when the requirement was originally adopted and is noted at the beginning of each part in Title 49 of the CFR.</P>
                <P>The APA specifically provides exceptions to its notice and comment rulemaking procedures when an agency finds there is good cause to dispense with them, and incorporates the finding, and a brief statement of reasons therefore, in the rules issued (5 U.S.C. 553(b)(B)). Good cause exists when an agency determines that notice and public comment procedures are impractical, unnecessary, or contrary to the public interest. The amendments made in this final rule primarily correct inadvertent errors and omissions, remove or update obsolete references, and make minor language changes to improve clarity and consistency. The technical amendments do not impose any new material requirements or increase compliance obligations. For these reasons, FMCSA finds good cause that notice and public comment on this final rule are unnecessary.</P>
                <P>In addition to amendments that fall within the APA good cause exception, this rule also contains amendments that fall within the APA exception for rules of agency organization, procedure, or practice. Specifically, the Agency amends 49 CFR 387.307(e) to specify the same procedures for Agency review of documents filed by brokers notified of a pending suspension of operating authority due to insufficient financial responsibility as are followed by the Agency when such brokers file documents in support of a reinstatement from suspension. These amendments fall within the exception to the APA's notice and comment rulemaking procedures for “rules of agency organization, procedure, or practice,” (5 U.S.C. 553(b)(A)) because the procedures for filing such documents are already specified in § 387.307(e) and so are made clearer with this amendment. Similarly, an amendment to part 389 also concerns matters of Agency policy. These changes are therefore excepted from the notice and public comment requirements.</P>
                <P>The APA also allows agencies to make rules effective immediately with good cause (5 U.S.C. 553(d)(3)), instead of requiring publication 30 days prior to the effective date. For the reasons already stated, FMCSA finds there is good cause for this rule to be effective immediately.</P>
                <P>This rule contains numerous, unrelated provisions that focus on unique aspects of FMCSA's regulations. Therefore, FMCSA finds that the various provisions of this final rule are severable and able to operate functionally if severed from each other. In the event a court were to invalidate one or more of this final rule's unique provisions, the remaining provisions should stand.</P>
                <HD SOURCE="HD1">III. Section-by-Section Analysis</HD>
                <HD SOURCE="HD2">A. Part 372—Exemptions, Commercial Zones, and Terminal Areas</HD>
                <HD SOURCE="HD3">Appendix A to Part 372 Commercial Zones</HD>
                <P>FMCSA is updating Appendix A to part 372 to ensure internal consistency in the regulations. On December 12, 1976, the ICC modified its regulations, which were then codified at 49 CFR part 1048, to expand commercial zones and motor carrier and freight forwarder terminal areas. (41 FR 56655). This amendment was based on a new population-mileage formula, which better reflected the growing economic and social development of American municipalities. As a result, ICC expanded the population-mileage boundaries beyond the existing zones in the regulations to better equalize competition between shippers located beyond the existing shipping zones and those located within the existing zones.</P>
                <P>Congress transferred jurisdiction over these regulations to the Federal Highway Administration (FHWA) as part of ICCTA (Pub. L. 104-88, 109 Stat. 803). In a final rule published on May 19, 1988 (53 FR 18042), FHWA added Appendix F to section 1048 and titled it, “Appendix F to Subchapter B—Commercial Zones.” A note was added to Appendix F to mention that its text is identical to the text of part 1048, revised as of October 1, 1975, which is no longer in print. On April 1, 1997, FHWA issued a final rule (62 FR 15417) to amend the former ICC regulations. The rule modified references to the ICC Act by changing references to provisions no longer in effect following enactment of ICCTA. As a result, part 372 was amended by replacing the words “part II of the ICC Act” and “part II of the Act” with “49 U.S.C. subtitle IV, part B.” In a later technical amendment published on September 24, 1997 (62 FR 49939), § 1048.101 was removed and replaced with § 372.241.</P>
                <P>Jurisdiction over commercial zones transferred to FMCSA in 2000, after Congress created the Agency as part of MCSIA. On October 14, 2021, FMCSA published a final rule moving Appendix F of subchapter B of chapter III, to part 372, and redesignating it as Appendix A (86 FR 57060).</P>
                <P>
                    It has come to FMCSA's attention that when the regulatory language was moved in 1997 from its former position at 49 CFR 1048.101 to its current position at 372.241, conforming changes were never made in Appendix A (formerly Appendix F of subchapter B). FMCSA now amends the outdated language in Appendix A to part 372 to match that of § 372.241, so that all references will be to the correct authority of 49 U.S.C. subtitle IV, part B.
                    <PRTPAGE P="45655"/>
                </P>
                <HD SOURCE="HD2">B. Part 384—State Compliance With Commercial Driver's License Program</HD>
                <HD SOURCE="HD3">Section 384.234 Driver Medical Certification Recordkeeping</HD>
                <P>Section 384.234 requires that States meet the medical certification recordkeeping requirements set out in the referenced sections of part 383. FMCSA published a final rule in October 2021 (86 FR 57060) to delete obsolete language from § 383.73 by revising the introductory paragraph (a), removing paragraph (a)(1), and renumbering paragraphs (a)(2)(i) through (vii) as paragraphs (a)(1) through (7). As a result of the change, prior § 383.73(a)(2)(vii) became 383.73(a)(7). However, the cross-references in § 384.234 were not updated to maintain consistency. FMCSA amends § 384.234 to change the outdated cross-reference to § 383.73(a)(2)(vii) to the current regulation, § 383.73(a)(7).</P>
                <HD SOURCE="HD3">Section 384.301 Substantial Compliance—General Requirements</HD>
                <P>FMCSA amends § 384.301 to more clearly explain which requirements the States need to comply with. Currently, the regulations cause confusion among State Driver's Licensing Agencies (SDLAs) because they do not specifically describe which requirements are covered by each compliance date paragraph; in most cases, the wording of each paragraph is identical except for the dates. To eliminate confusion, FMCSA supplements the words “requirements of subpart B of this part” each time they appear with the precise regulation each paragraph references. FMCSA also supplements “the requirements of part 383 of this chapter” in paragraph (m) with the name of the applicable regulation and adds the name of the applicable regulation to paragraph (n). No substantive changes to the requirements are made by this revision. Instead, this revision will eliminate confusion for SDLAs and ensure the compliance dates applicable to States are clear.</P>
                <HD SOURCE="HD2">C. Part 386—Rules of Practice for FMCSA Proceedings</HD>
                <HD SOURCE="HD3">Appendix B to Part 386</HD>
                <P>FMCSA is amending paragraph (g)(1) in Appendix B to part 386 to make clear that all entities required to register pursuant to 49 U.S.C. 13901 are subject to the civil penalty set out in 49 U.S.C. 14901 for failure to register. In 2015, FMCSA made numerous technical amendments to Appendix B, during which the earlier provision addressing civil penalties for noncompliance with 13901 was split in two. The first provision was made applicable to motor carriers and the second, to brokers. However, the provision addressing brokers, which is found at paragraph (g)(2) of Appendix B, only sets out the penalty for entities who knowingly operate as a broker in violation of registration requirements of 49 U.S.C 13904 or financial security requirements of 49 U.S.C 13906. It does not address the registration obligations in 13901, which are applicable to motor carriers, brokers, and freight forwarders.</P>
                <P>
                    At the same time, the term “carrier” in paragraph (g)(1) was amended to read, “motor carrier.” Under the definition in 49 U.S.C. 13102(3), which applies to 49 U.S.C. 13901, the term “carrier” is defined to include freight forwarders (and water carriers) 
                    <SU>2</SU>
                    <FTREF/>
                     in addition to motor carriers. By specifying that (g)(1) was applicable only to motor carriers, the 2015 amendments erroneously removed freight forwarders from the entities subject to civil penalties for violations of 49 U.S.C. 13901.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         References to water carriers were carried over from FMCSA's predecessor agencies, the ICC and FHWA. However, FMCSA does not have jurisdiction over water carriers. The Agency proposed to remove obsolete references to water carriers from its regulations on May 30, 2025 (90 FR 22892).
                    </P>
                </FTNT>
                <P>FMCSA is therefore conforming paragraph (g)(1) of Appendix B to the statute to correct the omission of covered entities and clarify once again that brokers and freight forwarders are also subject to the penalty specified in that paragraph for failure to comply with the requirements of 49 U.S.C. 13901.</P>
                <HD SOURCE="HD2">D. Part 387—Minimum Levels of Financial Responsibility for Motor Carriers</HD>
                <HD SOURCE="HD3">Section 387.9 Financial Responsibility, Minimum Levels</HD>
                <P>Section 387.9 specifies minimum levels of financial responsibility that motor carriers must maintain to comply with § 387.7. FMCSA, and FHWA before it, have amended table 1 to § 387.9 several times to clarify that the list generally refers to commodities carried in bulk (see 59 FR 63921, 63924 (Dec. 12, 1994), 73 FR 76472, 76496 (Dec. 16, 2008), 86 FR 57060, 57064 (Oct. 14, 2021), and 88 FR 80169 (Nov. 17, 2023)). The table previously used various terms to describe the quantities of these commodities, which were all revised to read “in bulk” in order to eliminate confusion and increase consistency by replacing the various terms with a single defined term.</P>
                <P>The second row of the table specifies a combination of carriage type and commodity subject to a $5,000,000 level of financial responsibility. In the description in the “Commodity transported” column of this row, the words “with capacities in bulk” were inadvertently added to describe hopper-type vehicles. This phrase is redundant, as the requirements already apply to hazardous materials transported “in bulk in cargo tanks, portable tanks, or hopper-type vehicles.” In order to clarify and streamline the description, FMCSA revises table 1, second row, second column, by removing the words “with capacities in bulk.”</P>
                <HD SOURCE="HD3">Section 387.307 Property Broker Surety Bond or Trust Fund</HD>
                <P>FMCSA amends §  387.307(e)(1)(iv)(C) and (e)(3)(ii) to correct an inadvertent typographical error from a previous final rule titled “Broker and Freight Forwarder Financial Responsibility” (88 FR 78656). The rule set out financial responsibility requirements for brokers of property and freight forwarders in five separate areas: assets readily available; immediate suspension of broker and freight forwarder operating authority; surety or trust responsibilities in cases of broker and freight forwarder financial failure or insolvency; enforcement authority; and entities eligible to provide trust funds for brokers and freight forwarders. The rule introduced new paragraphs, including paragraph (e), subparagraphs (e)(1) through (e)(6), which set out specific requirements for immediate suspension of broker and freight forwarder operating authority. When the Agency introduced paragraphs (e)(1)(iv)(C) and (e)(3)(ii), references to a non-existent paragraph (e)(1)(D) were inadvertently introduced. FMCSA amends both paragraphs to remove references to non-existent paragraph (e)(1)(D) and replace them with the correct provision, paragraph (e)(1)(ii).</P>
                <HD SOURCE="HD2">Part 389—Rulemaking Procedures—Federal Motor Carrier Safety Regulations</HD>
                <HD SOURCE="HD3">Section 389.31 Petitions for Rulemaking</HD>
                <P>
                    FMCSA amends part 389 to simplify the process for any interested person to petition the Administrator to establish, amend, interpret, clarify, or withdraw a rule, by clarifying the process to submit a petition. The Agency modifies the regulations to replace the general FMCSA website listed in § 389.31(b)(1) with a direct link to 
                    <E T="03">www.regulations.gov,</E>
                     which will facilitate submitting petitions for a 
                    <PRTPAGE P="45656"/>
                    rulemaking for the public. Docket number FMCSA-2021-0054 continues to serve as a mailbox for the public's submission of a petition for rulemaking. All petitions submitted to the docket will continue to be tracked on FMCSA's Petitions website.
                </P>
                <HD SOURCE="HD2">E. Part 390—Federal Motor Carrier Safety Regulations; General</HD>
                <HD SOURCE="HD3">Section 390.5 Definitions</HD>
                <P>
                    FMCSA amends this section by making a clarifying change to the definition of 
                    <E T="03">Gross vehicle weight rating (GVWR</E>
                    ). Some stakeholders have found the definition ambiguous regarding whether a vehicle with a GVWR of 10,001 pounds or more ceases to be a commercial motor vehicle (CMV) when, unladen, the vehicle weighs less than 10,001 pounds. This amendment serves to clarify that a vehicle with a GVWR of 10,001 pounds or more are always a CMV, regardless of the vehicle's actual weight at any point in time, as actual weight may fluctuate. Because the manufacturer determines a vehicle's GVWR, the weight rating does not change regardless of the actual weight of a vehicle at any given time. Although this section is currently suspended, FMCSA is amending it to mirror the amendments to temporary regulations in § 390.5T.
                </P>
                <HD SOURCE="HD3">Section 390.5T Definitions</HD>
                <P>
                    As explained in the prior paragraph, Section 390.5 Definitions, FMCSA amends this section by making a clarifying change to the definition of 
                    <E T="03">Gross vehicle weight rating (GVWR</E>
                    ).
                </P>
                <HD SOURCE="HD3">Section 390.27 Locations of Motor Carrier Safety Service Centers</HD>
                <P>Section 390.27 provides the addresses of the motor carrier safety service centers. FMCSA revises §  390.27 to change the address of the Midwestern Service Center from 600 Holiday Plaza Drive, Suite 240, Matteson, Illinois 60443, to 600 Town Center Road, Suite 240, Matteson, Illinois 60443. Although the Midwestern Service Center has not changed physical locations, FMCSA was notified that the Village of Matteson has changed the name of “Holiday Plaza Drive” to “Town Center Road,” requiring this technical update to the address.</P>
                <P>FMCSA also revises §  390.27 to change the address for the Western Service Center from 12600 West Colfax Avenue, Suite B-300, Lakewood, Colorado 80215, to 12300 West Dakota Avenue, Suite 131, Lakewood, Colorado 80229. This location change is effective as of December 2025.</P>
                <HD SOURCE="HD2">F. Part 391—Qualifications of Drivers and Longer Combination Vehicle (LCV) Driver Instructors</HD>
                <HD SOURCE="HD3">Section 391.23 Investigation and Inquiries</HD>
                <P>This section describes the investigations and inquiries a motor carrier conducts to ensure the qualifications of each driver it employs. Section 391.23(a)(1) describes the inquiry process to obtain a motor vehicle record covering the driver's prior 3-year driving history, which must be initiated within 30 days of the date the driver's employment begins. A final rule published in March 2022 (87 FR 13192) eliminated the requirement that drivers operating CMVs in interstate commerce prepare and submit an annual list of their convictions for traffic violations to their employers. As a result of the final rule, the language in § 391.23(a)(1) was amended to require inquiries for motor vehicle records (or MVRs) be made to “driver's licensing authorities” where the driver holds or has held a motor vehicle operator's license or permit, rather than to a “State.” The change of term usage from “State” to “driver's licensing authorities” was established to ensure motor carriers are aware of traffic convictions for a driver who is licensed by a foreign authority and not only drivers licensed by a State.</P>
                <P>In a subsequent rule published in November 2023, FMCSA amended its regulations by making technical corrections throughout the FMCSRs, including to § 391.23 (88 FR 80169, 80176 (Nov. 17, 2023)). As explained in the 2023 rule, the amendment was intended to clarify that the initial MVR required by § 391.23(a) is to cover the prior 3 years. However, the language inadvertently utilized the term “State” that had been replaced the in the rulemaking the prior year.</P>
                <P>Accordingly, FMCSA revises § 391.23(a)(1) to revert the word “State” to the term “driver's licensing authorities,” as accomplished in the March 2022 rule, as this is the accurate terminology.</P>
                <P>Separately, Section 391.23(m)(3)(i)(C) allows a driver to use a copy of the medical examiner's certificate as proof of the driver's certification for up to 15 days after the date it was issued, if the driver provided the motor carrier with a copy of the current medical examiner's certificate that was submitted to the State in accordance with § 383.73(a)(2)(vii). FMCSA published a final rule in October 2021 (86 FR 57060), in which it deleted obsolete language from § 383.73 by revising the introductory paragraph (a), removing paragraph (a)(1), and renumbering paragraphs (a)(2)(i) through (vii) as paragraphs (a)(1) through (7). As a result of the change, prior § 383.73(a)(2)(vii) became 383.73(a)(7). The rule failed to change cross-references to § 383.73(a)(2)(vii) in § 391.23(m)(3)(i)(C). FMCSA amends § 391.23(m)(3)(i)(C) to change an obsolete cross-reference to § 383.73(a)(2)(vii) to the current regulation, § 383.73(a)(7).</P>
                <HD SOURCE="HD3">Section 391.41 Physical Qualifications for Drivers</HD>
                <P>Section 391.41(a)(1)(i) describes the medical certification requirements for drivers physically qualified to operate a CMV. It requires drivers to obtain a medical certification to operate a CMV and have on their person the original or a copy of the current medical examiner's certificate indicating they can operate a CMV (with exceptions indicated in Section 391.41(a)(2)). FMCSA amends § 391.41(2)(1)(i) to correct an error in the last sentence referencing medical variance by replacing the words “medical variance” with “exemption or waiver.”</P>
                <P>In 1999, the United States and Canada entered into a Reciprocity Agreement (the Agreement), recognizing that a Canadian commercial driver's license is proof of medical fitness to drive a CMV. In 2000, the waiver program then codified at § 391.49 was changed to an alternative physical qualification standard under FMCSA's general safety authority, following changes to exemption authorities mandated by the Transportation Equity Act for the 21st Century, Public Law 105-178 (Jun. 9, 1998). Also in 2000, the Agreement was amended to prohibit drivers with medical exemptions, in addition to those who were medically certified via waivers or grandfathering, from engaging in cross-border operations.</P>
                <P>
                    On December 1, 2008, FMCSA published a final rule amending the FMCSR to add a provision excluding CDL drivers subject to part 391 from the requirement to carry the medical examiner's certificate because their current medical certification status information is reflected in the electronic Commercial Driver's License Information System (CDLIS) driver record. The rule also amended the regulations in § 390.5 to add the definition for “medical variance,” which means a driver has received either an exemption letter permitting operation of a CMV, or a skills performance evaluation (SPE) permitting CMV operation per § 381.49. However, the last sentence introduced in the amendments to § 391.41(2)(1)(i) 
                    <PRTPAGE P="45657"/>
                    states that U.S. drivers who received a medical variance from FMCSA cannot operate a CMV in Canada. By using the term “medical variance,” this amendment included drivers with SPE certificates in the category of drivers prohibited from cross-border operations in Canada, when only drivers with exemptions or waivers are actually prohibited under the Agreement.
                    <SU>3</SU>
                    <FTREF/>
                     The amendment is clearly erroneous because SPE certificates are neither an exemption nor waiver, and the Agreement does not specifically mention limb loss or impairment. FMCSA revises this section to replace the words “medical variance” with “exemption or waiver” to rectify that error.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         As of 2025, FMCSA has eliminated all medical grandfathering provisions from the FMCSR, and there are no longer any drivers medically qualified via grandfathering.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Section 391.45 Persons Who Must Be Medically Examined and Certified</HD>
                <P>FMCSA deletes a cross-reference in 391.45(b) that is no longer valid. In 2023, paragraph (d) of 391.45 was removed and reserved because it related to an obsolete vision waiver program that no longer exists (88 FR 80169). However, the cross-reference in paragraph (b) was not deleted at that time, and FMCSA is now making the correction.</P>
                <HD SOURCE="HD2">G. Part 393—Parts and Accessories Necessary for Safe Operation</HD>
                <HD SOURCE="HD3">Section 393.45 Brake Tubing and Hoses; Hose Assemblies and End Fittings</HD>
                <P>FMCSA corrects a spelling error found in § 393.45(b)(2), which describes brake tubing and hose installation and assembly. Currently, the section uses the word “chaffing” which will be corrected to “chafing.” The revised spelling conforms to the use of the word in other FMCSR, including § 393.65(f)(2) and § 393.77(b)(7).</P>
                <HD SOURCE="HD2">H. Part 395—Hours of Service of Drivers</HD>
                <HD SOURCE="HD3">Section 395.38 Incorporation by Reference</HD>
                <P>FMCSA revises the section heading of § 395.38 to change “Incorporation by reference” to “Matter incorporated by reference”, as the latter more accurately describes the contents of the section.</P>
                <HD SOURCE="HD2">I. PART 396—Inspection, Repair, and Maintenance</HD>
                <HD SOURCE="HD3">Section 396.3 Inspection, Repair, and Maintenance</HD>
                <P>Section 396.3(b) sets out the required records that motor carriers and intermodal equipment providers must maintain or cause to be maintained. The first recordkeeping requirement found in § 369.3(b)(1) states that records must include an identification of the vehicle including company number, if so marked, make, serial number, year, and tire size. This regulation was established by the FHWA in 1979 to mitigate vehicle defects and defect-related accidents. FMCSA revises this regulation to remove tire size from the recordkeeping requirement, as the Agency believes this requirement is obsolete.</P>
                <HD SOURCE="HD2">J. Part 399—Employee Safety and Health Standards</HD>
                <HD SOURCE="HD3">Section 399.205 Definitions</HD>
                <P>
                    Section 399.205 under Subpart L sets out a definition of the term “person” as described by the 1962 Health Examination Survey. This definition was incorporated by reference and approved by the Director of the Federal Register  on July 17, 1979. In FMCSA's current regulations, the survey is available for purchase from the U.S. Department of Commerce, National Technical Information Service, or for inspection at the National Archives and Records Administration (NARA). However, the material incorporated by reference into FMCSA's regulations is now available for free at the U.S. Center for Disease Control and Prevention (CDC) website at: 
                    <E T="03">www.cdc.gov/nchs/data/series/sr_11/sr11_008.pdf.</E>
                     Accordingly, FMCSA amends the paragraph describing the definition of “person” to provide free online public access to view copies of the 1962 Health Examination Survey via the CDC website. In addition, FMCSA updates NARA's contact information as the information currently listed dates to 1979.
                </P>
                <P>Since the Office of the Federal Register (OFR) updated the incorporation by reference system and the Director revoked approval for all previously approved IBR material in the CFR as of August 6, 1982, FMCSA has received a new approval under the changed system to continue using the section.</P>
                <HD SOURCE="HD1">IV. Regulatory Analyses</HD>
                <HD SOURCE="HD2">A. Executive Order (E.O.) 12866 (Regulatory Planning and Review) and DOT Regulatory Policies and Procedures</HD>
                <P>
                    FMCSA has considered the impact of this final rule under E.O. 12866 (58 FR 51735, Oct. 4, 1993), Regulatory Planning and Review, and DOT Order 2100.6B, Policies and Procedures for Rulemakings.
                    <SU>4</SU>
                    <FTREF/>
                     The Office of Information and Regulatory Affairs within the Office of Management and Budget (OMB) determined that this final rulemaking is not a significant regulatory action under section 3(f) of E.O. 12866 and has not reviewed it under that E.O.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         DOT Order 2100.6B, 
                        <E T="03">available at https://www.transportation.gov/regulations/dot-order-21006b-policies-and-procedures-rulemakings.</E>
                    </P>
                </FTNT>
                <P>In addition, this rule is not significant within the meaning of DOT regulations (49 CFR 5.13(a)). The amendments made in this final rule primarily correct inadvertent errors and omissions, remove or update obsolete references, and make minor language changes to improve clarity and consistency. In accommodating those changes, the Agency is performing nondiscretionary, ministerial acts. Other changes merely align regulatory requirements with the underlying statutory authority. None of the changes in this final rule impose new material requirements or increase compliance obligations; therefore, this final rule imposes no new costs and a full regulatory evaluation is unnecessary.</P>
                <HD SOURCE="HD2">B. Executive Order 14192 (Unleashing Prosperity Through Deregulation)</HD>
                <P>
                    E.O. 14192 (90 FR 9065, Jan. 31, 2025), Unleashing Prosperity Through Deregulation, requires that for “each new [E.O. 14192 regulatory action] issued, at least ten prior regulations be identified for elimination.” 
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Executive Office of the President. 
                        <E T="03">Executive Order 14192 of January 31, 2025. Unleashing Prosperity Through Deregulation,</E>
                         90 FR 9065-9067 (Feb. 6, 2025).
                    </P>
                </FTNT>
                <P>
                    Implementation guidance for E.O. 14192 issued by OMB (Memorandum M-25-20, Mar. 26, 2025) defines two different types of E.O. 14192 actions: an E.O. 14192 deregulatory action, and an E.O. 14192 regulatory action.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Executive Office of the President, Office of Management and Budget, 
                        <E T="03">Guidance Implementing Section 3 of Executive Order 14192, Titled “Unleashing Prosperity Through Deregulation”</E>
                         Memorandum M-25-20 (Mar. 26, 2025).
                    </P>
                </FTNT>
                <P>An E.O. 14192 deregulatory action is defined as “an action that has been finalized and has total costs less than zero.” This final rulemaking is expected to have total costs equal to zero, and is therefore neither an E.O. 14192 deregulatory nor regulatory action.</P>
                <HD SOURCE="HD2">C. Congressional Review Act</HD>
                <P>
                    This rule is not a major rule as defined under the Congressional Review Act (5 U.S.C. 801-808).
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         A 
                        <E T="03">major rule</E>
                         means any rule that the Office of Management and Budget finds has resulted in or is likely to result in (a) an annual effect on the economy of $100 million or more; (b) a major increase in costs or prices for consumers, individual 
                        <PRTPAGE/>
                        industries, geographic regions, Federal, State, or local government agencies; or (c) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets (5 U.S.C. 802(4)).
                    </P>
                </FTNT>
                <PRTPAGE P="45658"/>
                <HD SOURCE="HD2">D. Regulatory Flexibility Act (Small Entities)</HD>
                <P>
                    Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    ), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857), FMCSA is not required to prepare a regulatory flexibility analysis under 5 U.S.C. 604(a) for this final rule because FMCSA has not issued a notice of proposed rulemaking prior to this action.
                </P>
                <HD SOURCE="HD2">E. Assistance for Small Entities</HD>
                <P>
                    In accordance with section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857), FMCSA wants to assist small entities in understanding this final rule so they can better evaluate its effects on themselves and participate in the rulemaking initiative. If the final rule will affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please consult the person listed under 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    .
                </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 Administration's Small Business and Agriculture Regulatory Enforcement Ombudsman (Office of the National Ombudsman, see 
                    <E T="03">https://www.sba.gov/about-sba/oversight-advocacy/office-national-ombudsman</E>
                    ) 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 FMCSA, call 1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights of small entities to regulatory enforcement fairness and an explicit policy against retaliation for exercising these rights.
                </P>
                <HD SOURCE="HD2">F. Unfunded Mandates Reform Act of 1995</HD>
                <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) (UMRA) requires Federal agencies to assess the effects of their discretionary regulatory actions. The UMRA addresses actions that may result in the expenditure by a State, local, or Tribal government, in the aggregate, or by the private sector of $206 million (which is the value equivalent of $100 million in 1995, adjusted for inflation to 2024 levels) or more in any 1 year. Though this final rule would not result in such an expenditure, and the analytical requirements of UMRA do not apply as a result, FMCSA discusses the effects of this rule elsewhere in this preamble.</P>
                <HD SOURCE="HD2">G. Paperwork Reduction Act</HD>
                <P>This rule contains no new information collection requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Although this rule makes changes to part 387, which is covered by an information collection (IC), these amendments to the regulations are not expected to result in more than a de minimis change to the existing collections and will be reflected in the next renewal of that IC.</P>
                <HD SOURCE="HD2">H. Executive Order 13132 (Federalism)</HD>
                <P>A rule has implications for federalism under section 1(a) of E.O. 13132 if it has “substantial direct effects 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.” FMCSA has determined that this rule will not have substantial direct costs on or for States, nor will it limit the policymaking discretion of States. Nothing in this document preempts any State law or regulation. Therefore, this rule does not have sufficient federalism implications to warrant the preparation of a Federalism Impact Statement.</P>
                <HD SOURCE="HD2">I. Privacy</HD>
                <P>
                    The Consolidated Appropriations Act, 2005,
                    <SU>8</SU>
                    <FTREF/>
                     requires the Agency to assess the privacy impact of a regulation that will affect the privacy of individuals. Because this rule does not require the collection of personally identifiable information, FMCSA is not required to conduct a privacy impact assessment.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Public Law 108-447, 118 Stat. 2809, 3268, note following 5 U.S.C. 552a (Dec. 4, 2014).
                    </P>
                </FTNT>
                <P>The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies and any non-Federal agency that receives records contained in a system of records from a Federal agency for use in a matching program.</P>
                <P>
                    The E-Government Act of 2002,
                    <SU>9</SU>
                    <FTREF/>
                     requires Federal agencies to conduct a Privacy Impact Analysis (PIA) for new or substantially changed technology that collects, maintains, or disseminates information in an identifiable form. No new or substantially changed technology will collect, maintain, or disseminate information as a result of this rule. Accordingly, FMCSA has not conducted a PIA.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Public Law 107-347, sec. 208, 116 Stat. 2899, 2921 (Dec. 17, 2002).
                    </P>
                </FTNT>
                <P>In addition, FMCSA submitted a Privacy Threshold Assessment (PTA) to evaluate the risks and effects the rulemaking may have on collecting, storing, and sharing personally identifiable information. The PTA was adjudicated by DOT's Chief Privacy Officer on October 30, 2025.</P>
                <HD SOURCE="HD2">J. Executive Order 13175 (Indian Tribal Governments)</HD>
                <P>This rule does not have Tribal implications under E.O. 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">K. National Environmental Policy Act of 1969</HD>
                <P>
                    FMCSA analyzed this rule pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ) and determined this action is categorically excluded from further analysis and documentation in an environmental assessment or environmental impact statement under DOT Order 5610.1D,
                    <SU>10</SU>
                    <FTREF/>
                     Subpart B, subsection (e), paragraphs 6(b) and 6(e). These categorical exclusions address technical amendments and other minor amendments such as those found in this rulemaking, regulations concerning internal agency functions, organization, or personnel administration, and regulations to handle the processing of applications for operating authority and certificates of registration.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Available at 
                        <E T="03">https://www.transportation.gov/mission/dots-procedures-considering-environmental-impacts.</E>
                    </P>
                </FTNT>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects</HD>
                    <CFR>49 CFR Part 372</CFR>
                    <P>Agricultural Commodities, Buses, Cooperatives, Freight Forwarders, Motor Carriers, Moving of household goods, Seafood.</P>
                    <CFR>49 CFR Part 384</CFR>
                    <P>Administrative practice and procedure, Alcohol abuse, Drug abuse, Highway safety, Incorporation by reference, Motor carriers.</P>
                    <CFR>49 CFR Part 386</CFR>
                    <P>
                        Administrative practice and procedure, Brokers, Freight forwarders, 
                        <PRTPAGE P="45659"/>
                        Hazardous materials transportation, Highway safety, Highways and roads, Motor carriers, Motor vehicle safety, Penalties.
                    </P>
                    <CFR>49 CFR Part 387</CFR>
                    <P>Buses, Freight, Freight forwarders, Hazardous materials transportation, Highway safety, Insurance, Intergovernmental relations, Motor carriers, Motor vehicle safety, Moving of household goods, Penalties, Reporting and recordkeeping requirements, Surety bonds.</P>
                    <CFR>49 CFR Part 389</CFR>
                    <P>Administrative practice and procedure, Highway safety, Motor carriers, Motor vehicle safety.</P>
                    <CFR>49 CFR Part 390</CFR>
                    <P>Highway safety, Intermodal transportation, Motor carriers, Motor vehicle safety, Reporting and recordkeeping requirements.</P>
                    <CFR>49 CFR Part 391</CFR>
                    <P>Alcohol abuse, Drug Abuse, Drug testing, Highway safety, Motor carriers, Reporting and recordkeeping requirements, Safety, Transportation.</P>
                    <CFR>49 CFR Part 393</CFR>
                    <P>Highway safety, Motor carriers, Motor vehicle safety.</P>
                    <CFR>49 CFR Part 395</CFR>
                    <P>Highway safety, Motor carriers, Reporting and recordkeeping requirements.</P>
                    <CFR>49 CFR Part 396</CFR>
                    <P>Highway safety, Motor carriers, Motor vehicle safety, Safety and recordkeeping requirements.</P>
                    <CFR>49 CFR Part 399</CFR>
                    <P>Incorporation by reference, Motor carriers, Motor vehicle safety, Occupational safety and health.</P>
                </LSTSUB>
                <P>In consideration of the foregoing, FMCSA amends 49 CFR chapter III as set forth below:</P>
                <PART>
                    <HD SOURCE="HED">PART 372—EXEMPTIONS, COMMERCIAL ZONES, AND TERMINAL AREAS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="372">
                    <AMDPAR>1. The authority citation for part 372 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>49 U.S.C. 13504 and 13506; Pub. L. 105-178, sec. 4031, 112 Stat. 418; and 49 CFR 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="372">
                    <AMDPAR>2. Amend appendix A by revising and republishing sec. 44 to read as follows:</AMDPAR>
                    <HD SOURCE="HD1">Appendix A to Part 372—Commercial Zones</HD>
                    <STARS/>
                    <HD SOURCE="HD1">Sec. 44—Commercial Zones Determined Generally, With Exceptions</HD>
                    <EXTRACT>
                        <P>The commercial zone of each municipality in the United States, with the exceptions indicated in the note at the end of this section, within which the transportation of passengers or property, in interstate or foreign commerce, when not under a common control, management, or arrangement for a continuous carriage or shipment to or from a point without such zone, is exempt from all provisions of 49 U.S.C. subtitle IV, part B shall be deemed to consist of:</P>
                        <P>a. The municipality itself, hereinafter called the base municipality;</P>
                        <P>b. All municipalities which are contiguous to the base municipality;</P>
                        <P>c. All other municipalities and all unincorporated areas within the United States which are adjacent to the base municipality as follows:</P>
                        <P>(1) When the base municipality has a population less than 2,500 but less than 25,000 all unincorporated areas within 4 miles of its corporate limits and all of any other municipality any part of which is within 4 miles of the corporate limits of the base municipality.</P>
                        <P>(2) When the base municipality has a population of 2,500 but less than 25,000 all unincorporated areas within 4 miles of its corporate limits and all of any other municipality any part of which is within 4 miles of the corporate limits of the base municipality.</P>
                        <P>(3) When the base municipality has a population of 25,000 but less than 100,000 all unincorporated areas within 6 miles of its corporate limits and all of any other municipality any part of which is within 6 miles of the corporate limits of the base municipality, and</P>
                        <P>(4) When the base municipality has a population of 100,000 but less than 200,000 all unincorporated areas within 8 miles of its corporate limits and all of any other municipality any part of which is within 8 miles of the corporate limits of the municipality.</P>
                        <P>(5) When the base municipality has a population of 200,000 but less than 500,000 all unincorporated areas within 10 miles of its corporate limits and all of any other municipality any part of which is within 10 miles of the corporate limits of the base municipality.</P>
                        <P>(6) When the base municipality has a municipality has a population of 500,000 but less than 1 million, all unincorporated areas within 15 miles of its corporate limits and all of any other municipality any part of which is within 15 miles of the corporate limits of the base municipality.</P>
                        <P>(7) When the base municipality has a population of 1 million or more, all unincorporated areas within 20 miles of its corporate limits and all of any other municipality any part of which is within 20 miles of the corporate limits of the base municipality, and</P>
                        <P>d. All municipalities wholly surrounded, or so surrounded except for a water boundary, by the base municipality, by any municipality contiguous thereto, or by any municipality adjacent thereto which is included in the commercial zone of such base municipality under the provisions of paragraph (c) of this section. Note: Except: Municipalities the commercial zones of which have been or are hereafter individually or specially determined.</P>
                    </EXTRACT>
                    <STARS/>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 384—STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM</HD>
                </PART>
                <REGTEXT TITLE="49" PART="384">
                    <AMDPAR>3. The authority citation for part 384 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>
                             49 U.S.C. 31136, 31301, 
                            <E T="03">et seq.,</E>
                             and 215 of Pub. L. 106-159, 113 Stat. 1748, 1753, 1767; sec. 32934 of Pub. L. 112-141, 126 Stat. 405, 830; sec. 5524 of Pub. L. 114-94, 129 Stat. 1312, 1560; and 49 CFR 1.87.
                        </P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 384.234</SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="49" PART="384">
                    <AMDPAR>4. Amend § 384.234 by removing the text “383.73(a)(2)(vii)” and adding in its place the text “383.73(a)(7)”.</AMDPAR>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="384">
                    <AMDPAR>5. Revise and republish § 384.301 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 384.301</SECTNO>
                        <SUBJECT>Substantial compliance-general requirements.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Compliance, generally.</E>
                             To be in substantial compliance with 49 U.S.C. 31311(a), the State must meet each and every standard of subpart B of this part by means of the demonstrable combined effect of its statutes, regulations, administrative procedures and practices, organizational structures, internal control mechanisms, resource assignments (facilities, equipment, and personnel), and enforcement practices.
                        </P>
                        <P>
                            (b)(1) 
                            <E T="03">Commercial driver's license program improvements and noncommercial motor vehicle violations.</E>
                             Except as provided in paragraph (b)(2) of this section, a State must come into substantial compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2002) as soon as practical, but, unless otherwise specifically provided in this part, not later than September 30, 2005.
                        </P>
                        <P>
                            (2) 
                            <E T="03">School bus endorsement exception.</E>
                             A State must come into substantial compliance with 49 CFR 383.123 (revised as of Oct. 1, 2002) not later than September 30, 2006.
                        </P>
                        <P>
                            (c) 
                            <E T="03">Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for User (SAFETEA-LU).</E>
                             A State must come into substantial compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2007) as soon as practical but, unless otherwise specifically provided in this part, not later than September 4, 2010.
                        </P>
                        <P>
                            (d) 
                            <E T="03">Commercial driver's license medical certification requirements.</E>
                             A State must come into substantial 
                            <PRTPAGE P="45660"/>
                            compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2009), as soon as practical, but not later than January 30, 2012.
                        </P>
                        <P>
                            (e) 
                            <E T="03">Limiting the use of wireless communication devices.</E>
                             A State must come into substantial compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2010, as amended at 75 FR 59118, 59135, in effect as of Oct. 27, 2010) as soon as practical, but not later than October 28, 2013.
                        </P>
                        <P>
                            (f) 
                            <E T="03">Commercial driver's license testing and commercial learner's permit standards.</E>
                             A State must come into substantial compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2011), and 49 CFR part 384, subpart B (revised as of Oct. 1, 2012, as amended at 78 FR 17875, 17881, in effect as of Apr. 24, 2013) as soon as practical but, unless otherwise specifically provided in this part, not later than July 8, 2015.
                        </P>
                        <P>
                            (g) 
                            <E T="03">Commercial driver's license information system state procedures manual.</E>
                             A State must come into substantial compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2011, as amended at 76 FR 68328, 68332, in effect as of Dec. 5, 2011) as soon as practicable, but not later than January 30, 2012.
                        </P>
                        <P>
                            (h) 
                            <E T="03">Restricting the use of cellular phones for commercial motor vehicle drivers.</E>
                             A State must come into substantial compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2011, as amended at 76 FR 68328, 68332 and further amended at 76 FR 75470, 75486, in effect as of Jan. 3, 2012) as soon as practical, but not later than January 3, 2015.
                        </P>
                        <P>
                            (i) 
                            <E T="03">Medical examiner's certification integration.</E>
                             A State must come into substantial compliance with the requirements of 49 CFR parts 383 and 384, subpart B (revised as of Oct. 1, 2015) as soon as practical, but, unless otherwise specifically provided in this part, not later than June 23, 2025.
                        </P>
                        <P>
                            (j) 
                            <E T="03">Commercial driver's license requirements of the Moving Ahead for Progress in the 21st Century Act and the Military Commercial Driver's License Act of 2012.</E>
                             A State must come into substantial compliance with 49 CFR parts 383 and 384, subpart B (revised as of Oct. 1, 2016, as amended at 81 FR 70634, 70646, in effect as of Dec. 12, 2016) as soon as practicable, but, unless otherwise specifically provided in this part, not later than December 12, 2019.
                        </P>
                        <P>
                            (k) 
                            <E T="03">Minimum training requirements for entry-level commercial vehicle operators.</E>
                             A State must come into substantial compliance with 49 CFR parts 383 and 384, subpart B (revised as of Oct. 1, 2017) not later than February 7, 2022.
                        </P>
                        <P>
                            (l) 
                            <E T="03">Military licensing and state commercial driver's license reciprocity.</E>
                             A State must come into substantial compliance with 49 CFR part 384, subpart B (revised as of Oct. 1, 2019) and 49 CFR parts 383 (revised as of Oct. 1, 2018, as amended at 83 FR 48964, 48975, in effect as of Nov. 27, 2018) as soon as practicable, but, unless otherwise specifically provided in this part, not later than November 27, 2021.
                        </P>
                        <P>
                            (m) 
                            <E T="03">Lifetime disqualification for human trafficking.</E>
                             A State must come into substantial compliance with 49 CFR part 383 (revised as of Oct. 1, 2021) as of September 23, 2019, or as soon as practicable, but not later than September 23, 2022.
                        </P>
                        <P>
                            (n) 
                            <E T="03">Exclusively electronic exchange of driver history record information.</E>
                             A State must come into substantial compliance with the requirements of 49 CFR parts 383 and 384, subpart B (revised as of Oct. 1, 2022) as soon as practicable, but not later than August 22, 2024.
                        </P>
                        <P>
                            (o) 
                            <E T="03">State driver's licensing agency non-issuance/downgrade of commercial driver's license related to controlled substances and alcohol testing.</E>
                             A State must come into substantial compliance with the requirements of 49 CFR part 384, subpart B (revised as of Oct. 1, 2024) as soon as practicable, but, unless otherwise specifically provided in this part, not later than November 18, 2024.
                        </P>
                        <P>
                            (p) 
                            <E T="03">State procedures manual.</E>
                             A State must come into substantial compliance with the requirements of 49 CFR part 384, subpart B (revised as of Oct. 1, 2024) as soon as practicable, but not later than August 22, 2024.
                        </P>
                        <P>
                            (q) 
                            <E T="03">Non-domiciled commercial driver's licenses.</E>
                             A State must come into substantial compliance with the requirements of subpart B of this part, in effect as of February 13, 2026, and part 383 of this chapter, in effect as of February 13, 2026, prior to issuing (which includes amending, correcting, reprinting, or otherwise duplicating a previously issued CLP or CDL), transferring, renewing, or upgrading a non-domiciled CLP or CDL.
                        </P>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 386—RULES OF PRACTICE FOR FMCSA PROCEEDINGS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="386">
                    <AMDPAR>6. The authority citation for part 386 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>28 U.S.C. 2461 note; 49 U.S.C. 113, 1301 note, 31306a; 49 U.S.C. chapters 5, 51, 131-141, 145-149, 311, 313, and 315; and 49 CFR 1.81, 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="386">
                    <AMDPAR>7. Amend appendix B to part 386 by revising paragraph (g)(1) to read as follows:</AMDPAR>
                    <HD SOURCE="HD1">Appendix B to Part 386—Penalty Schedule: Violations and Monetary Penalties</HD>
                    <STARS/>
                    <P>(g) * * *</P>
                    <EXTRACT>
                        <P>(1) A person who operates as a motor carrier, broker, or freight forwarder for the transportation of property in violation of the registration requirements of 49 U.S.C. 13901 is liable for a minimum penalty of $13,676 per violation.</P>
                    </EXTRACT>
                    <STARS/>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 387—MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR CARRIERS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="387">
                    <AMDPAR>8. The authority citation for part 387 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 49 U.S.C. 13101, 13301, 13906, 13908, 14701, 31138, 31139; sec. 204(a), Pub. L. 104-88, 109 Stat. 803, 941; and 49 CFR 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="387">
                    <AMDPAR>9. Amend § 387.9 by revising the second entry of table 1 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 387.9</SECTNO>
                        <SUBJECT>Financial responsibility, minimum levels.</SUBJECT>
                        <STARS/>
                        <GPOTABLE COLS="3" OPTS="L1,nj,i1" CDEF="s50,r100,18">
                            <TTITLE>Table 1 to § 387.9—Schedule of Limits—Public Liability</TTITLE>
                            <BOXHD>
                                <CHED H="1">Type of carriage</CHED>
                                <CHED H="1">Commodity transported</CHED>
                                <CHED H="1">January 1, 1985</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">(2) For-hire and Private (In interstate, foreign, or intrastate commerce, with a gross vehicle weight rating of 10,001 or more pounds)</ENT>
                                <ENT>Hazardous substances, as defined in 49 CFR 171.8, transported in bulk in cargo tanks, portable tanks, or hopper-type vehicles; in bulk Division 1.1, 1.2 or 1.3 materials; in bulk Division 2.3, Hazard Zone A material; in bulk Division 6.1, Packing Group I, Hazard Zone A material, in bulk Division 2.1 or 2.2 material; or highway route controlled quantities of a Class 7 material, as defined in 49 CFR 173.403</ENT>
                                <ENT>5,000,000</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <PRTPAGE P="45661"/>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                        </GPOTABLE>
                    </SECTION>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 387.307 </SECTNO>
                    <SUBJECT>[Amended] </SUBJECT>
                </SECTION>
                <REGTEXT TITLE="49" PART="387">
                    <AMDPAR>10. Amend § 387.307 by:</AMDPAR>
                    <AMDPAR>a. In paragraph (e)(1)(iv)(C), removing the text “paragraph (e)(1)(D)(ii)” and adding in its place the text “paragraph (e)(1)(ii)”; and</AMDPAR>
                    <AMDPAR>b. In paragraph (e)(3)(ii), removing the text “paragraph (e)(1)(D)” and adding in its place the text “paragraph (e)(1)”.</AMDPAR>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 389—RULEMAKING PROCEDURES—FEDERAL MOTOR CARRIER SAFETY REGULATIONS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="387">
                    <AMDPAR>11. The authority citation for part 390 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>
                            49 U.S.C. 113, 501 
                            <E T="03">et seq.,</E>
                             subchapters I and III of chapter 311, chapter 313, and 31502; sec. 5204 of Pub. L. 114-94, 129 Stat. 1312, 1536; 42 U.S.C. 4917; and 49 CFR 1.87
                        </P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="387">
                    <AMDPAR>12. Amend § 389.31 by revising paragraph (b)(1) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 389.31 </SECTNO>
                        <SUBJECT>Petitions for rulemaking.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>
                            (1) Be submitted in writing by mail to the Administrator, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE, Washington, DC 20590-0001 or electronically at 
                            <E T="03">www.regulations.gov,</E>
                             using the general petitions for rulemaking docket FMCSA-2021-0054.
                        </P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 390—FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL</HD>
                </PART>
                <REGTEXT TITLE="49" PART="390">
                    <AMDPAR>13. The authority citation for part 390 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>49 U.S.C. 113, 504, 508, 31132, 31133, 31134, 31136, 31137, 31144, 31149, 31151, 31502; sec. 114, Pub. L. 103-311, 108 Stat. 1673, 1677; secs. 212 and 217, Pub. L. 106-159, 113 Stat. 1748, 1766, 1767; sec. 229, Pub. L. 106-159 (as added and transferred by sec. 4115 and amended by secs. 4130-4132, Pub. L. 109-59, 119 Stat. 1144, 1726, 1743, 1744), 113 Stat. 1748, 1773; sec. 4136, Pub. L. 109-59, 119 Stat. 1144, 1745; secs. 32101(d) and 32934, Pub. L. 112-141, 126 Stat. 405, 778, 830; sec. 2, Pub. L. 113-125, 128 Stat. 1388; secs. 5403, 5518, and 5524, Pub. L. 114-94, 129 Stat. 1312, 1548, 1558, 1560; sec. 2, Pub. L. 115-105, 131 Stat. 2263; and 49 CFR 1.81, 1.81a, 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="390">
                    <AMDPAR>14. Amend § 390.5 by:</AMDPAR>
                    <AMDPAR>a. Lifting the suspension of the section;</AMDPAR>
                    <AMDPAR>b. Revising and republishing the definition for “Gross vehicle weight rating”; and</AMDPAR>
                    <AMDPAR>c. Suspending the section indefinitely.</AMDPAR>
                    <P>The revision reads as follows:</P>
                    <SECTION>
                        <SECTNO>§ 390.5 </SECTNO>
                        <SUBJECT>Definitions.</SUBJECT>
                        <STARS/>
                        <P>
                            <E T="03">Gross vehicle weight rating (GVWR)</E>
                             means the value specified by the manufacturer as the maximum loaded weight of a single motor vehicle.
                        </P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="390">
                    <AMDPAR>15. Amend § 390.5T by revising and republishing the definition for “Gross vehicle weight rating” to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 390.5T </SECTNO>
                        <SUBJECT>Definitions.</SUBJECT>
                        <STARS/>
                        <P>
                            <E T="03">Gross vehicle weight rating (GVWR)</E>
                             means the value specified by the manufacturer as the maximum loaded weight of a single motor vehicle.
                        </P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="390">
                    <AMDPAR>16. Amend § 390.27 in the table by revising the entries for “Midwestern” and “Western” to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 390.27 </SECTNO>
                        <SUBJECT>Locations of motor carrier safety service centers.</SUBJECT>
                        <GPOTABLE COLS="3" OPTS="L1,nj,tp0,i1" CDEF="s50,r100,r100">
                            <TTITLE> </TTITLE>
                            <BOXHD>
                                <CHED H="1">Service center</CHED>
                                <CHED H="1">Territory included</CHED>
                                <CHED H="1">Location of office</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Midwestern</ENT>
                                <ENT>Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, Wisconsin</ENT>
                                <ENT>600 Town Center Road, Suite 240, Matteson, Illinois 60443.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Western</ENT>
                                <ENT>Alaska, American Samoa, Arizona, California, Colorado, Guam, Hawaii, Idaho, Mariana Islands, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Texas, Utah, Washington, Wyoming</ENT>
                                <ENT>12300 West Dakota Avenue, Suite 131, Lakewood, Colorado 80228.</ENT>
                            </ROW>
                        </GPOTABLE>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 391—QUALIFICATIONS OF DRIVERS AND LONGER COMBINATION VEHICLE (LCV) DRIVER INSTRUCTORS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="391">
                    <AMDPAR>17. The authority citation for part 391 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>49 U.S.C. 504, 508, 31133, 31136, 31149, 31502; sec. 4007(b), Pub. L. 102-240, 105 Stat. 1914, 2152; sec. 114, Pub. L. 103-311, 108 Stat. 1673, 1677; sec. 215, Pub. L. 106-159, 113 Stat. 1748, 1767; sec. 32934, Pub. L. 112-141, 126 Stat. 405, 830; secs. 5403 and 5524, Pub. L. 114-94, 129 Stat. 1312, 1548, 1560; sec. 2, Pub. L. 115-105, 131 Stat. 2263; and 49 CFR 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 391.23 </SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="49" PART="391">
                    <AMDPAR>18. Amend § 391.23 by:</AMDPAR>
                    <AMDPAR>a. In paragraph (a)(1), removing the word “State” and adding in its place the text “driver's licensing authority”; and</AMDPAR>
                    <AMDPAR>b. In paragraph (m)(3)(i)(C):</AMDPAR>
                    <AMDPAR>i. Removing the word “State” and adding in its place the text “driver's licensing authority”; and</AMDPAR>
                    <AMDPAR>ii. Removing “383.73(a)(2)(vii)” and adding in its place “383.73(a)(7)”.</AMDPAR>
                </REGTEXT>
                <REGTEXT>
                    <SECTION>
                        <SECTNO>§ 391.41 </SECTNO>
                        <SUBJECT>[Amended]</SUBJECT>
                    </SECTION>
                    <AMDPAR>19. Amend § 391.41 in paragraph (a)(1)(i) by removing the words “medical variance” from the last sentence and adding in their place the words “exemption or waiver.”</AMDPAR>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="391">
                    <AMDPAR>20. Amend § 391.45 by revising paragraph (b) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 391.45 </SECTNO>
                        <SUBJECT>Persons who must be medically examined and certified.</SUBJECT>
                        <STARS/>
                        <P>
                            (b) Any driver who has not been medically examined and certified as qualified to operate a commercial motor vehicle during the preceding 24 months, 
                            <PRTPAGE P="45662"/>
                            unless the driver is required to be examined and certified in accordance with paragraph (c), (e), (f), (g), or (h) of this section;
                        </P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 393—PARTS AND ACCESSORIES NECESSARY FOR SAFE OPERATION</HD>
                </PART>
                <REGTEXT TITLE="49" PART="393">
                    <AMDPAR>21. The authority citation for part 393 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 49 U.S.C. 31136, 31151, 31502; sec. 1041(b), Pub. L. 102-240, 105 Stat. 1914, 1993; secs. 5301 and 5524, Pub. L. 114-94, 129 Stat. 1312, 1543, 1560; and 49 CFR 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT>
                    <SECTION>
                        <SECTNO>§ 393.45 </SECTNO>
                        <SUBJECT>[Amended]</SUBJECT>
                    </SECTION>
                    <AMDPAR>22. Amend § 393.45 by removing the word “chaffing” and adding in its place the word “chafing.”</AMDPAR>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 395—HOURS OF SERVICE OF DRIVERS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="395">
                    <AMDPAR>23. The authority citation for part 395 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>49 U.S.C. 504, 21104(e), 31133, 31136, 31137, 31502; sec. 113, Pub. L. 103-311, 108 Stat. 1673, 1676; sec. 229, Pub. L. 106-159 (as added and transferred by sec. 4115 and amended by secs. 4130-4132, Pub. L. 109-59, 119 Stat. 1144, 1726, 1743, 1744), 113 Stat. 1748, 1773; sec. 4133, Pub. L. 109-59, 119 Stat. 1144, 1744; sec. 32934, Pub. L. 112-141, 126 Stat. 405, 830; sec. 5206(b), Pub. L. 114-94, 129 Stat. 1312, 1537; and 49 CFR 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="395">
                    <AMDPAR>24. Amend § 395.38 by revising the section heading to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 395.38 </SECTNO>
                        <SUBJECT>Matter incorporated by reference.</SUBJECT>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 396—INSPECTION, REPAIR, AND MAINTENANCE</HD>
                </PART>
                <REGTEXT TITLE="49" PART="396">
                    <AMDPAR>25. The authority citation for part 396 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>49 U.S.C. 504, 31133, 31136, 31151, 31502; sec. 32934, Pub. L. 112-141, 126 Stat. 405, 830; sec. 5524, Pub. L. 114-94, 129 Stat. 1312, 1560; and 49 CFR 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="396">
                    <AMDPAR>26. Amend § 396.3 by revising paragraph (b)(1) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 396.3 </SECTNO>
                        <SUBJECT>Inspection, repair, and maintenance.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) An identification of the vehicle including company number, if so marked, make, serial number, and year. In addition, if the motor vehicle is not owned by the motor carrier, the record shall identify the name of the person furnishing the vehicle;</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <PART>
                    <HD SOURCE="HED">PART 399—EMPLOYEE SAFETY AND HEALTH STANDARDS</HD>
                </PART>
                <REGTEXT TITLE="49" PART="399">
                    <AMDPAR>27. The authority citation for part 399 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>49 U.S.C. 31502; and 49 CFR 1.87.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="49" PART="399">
                    <AMDPAR>28. Amend § 399.205 by revising the definition for “Person” to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 399.205</SECTNO>
                        <SUBJECT> Definitions.</SUBJECT>
                        <STARS/>
                        <P>
                            <E T="03">Person,</E>
                             as used in this part, means:
                        </P>
                        <P>
                            (1) Any individual within the 5th percentile female adult through the 95th percentile male adult of anthropometric measures as described by 
                            <E T="03">Weight, Height and Selected Body Dimensions of Adults, United States 1960-1962.</E>
                        </P>
                        <P>
                            (2) Vital and Health Statistics; Series 11, No. 8 (6/65), 
                            <E T="03">Weight, Height and Selected Body Dimensions of Adults, United States 1960-1962,</E>
                             issued June 1965 (first issued in Public Health Service publication No. 1000, then reprinted DHEW publication No. (HRA) 76-1074), is incorporated by reference into this section with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 5.1. This material is available for inspection at FMCSA and at the National Archives and Records Administration (NARA). Contact FMCSA at the Department of Transportation Library, 1200 New Jersey Avenue SE, Washington, DC 20509; (202) 366-0746; website: 
                            <E T="03">https://transportation.libanswers.com.</E>
                             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>
                             You may also obtain the material electronically from the U.S. Centers for Disease Control and Prevention, phone: (800) 232-4636; website: 
                            <E T="03">www.cdc.gov/cdc-info/forms/contact-us.html.</E>
                             Download the material at 
                            <E T="03">www.cdc.gov/nchs/data/series/sr_11/sr11_008.pdf.</E>
                        </P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <P>Issued under authority delegated in 49 CFR 1.87.</P>
                    <NAME>Derek D. Barrs,</NAME>
                    <TITLE>Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14701 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <CFR>50 CFR Part 17</CFR>
                <DEPDOC>[Docket No. FWS-HQ-ES-2025-0048; FXES11110900000-267-FF09E23000]</DEPDOC>
                <RIN>RIN 1018-BI76</RIN>
                <SUBJECT>Endangered and Threatened Wildlife and Plants; Regulations for Designating Critical Habitat</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>We, the U.S. Fish and Wildlife Service (FWS or the Service), amend portions of our regulations for section 4 of the Endangered Species Act of 1973, as amended (Act or ESA). Specifically, we revise regulations related to section 4(b)(2) of the Act. Section 4(b)(2) requires consideration of the economic impact, the impact on national security, and any other relevant impact of designating any particular area as critical habitat and authorizes the exclusion of areas from critical habitat if the benefits of excluding the area outweigh the benefits of designating it as critical habitat. These revisions articulate when and how we determine whether the benefits of excluding an area outweigh the benefits of designating the area as critical habitat (exclusion analysis). This rule reflects the Service's experience and existing case law. The intended effect of this rule is to provide greater transparency and certainty for the public and stakeholders regarding the 4(b)(2) exclusion process.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective August 20, 2026.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Public comments and materials received, as well as supporting documentation used in the preparation of this final regulation, are available at 
                        <E T="03">https://www.regulations.gov</E>
                         at Docket No. FWS-HQ-ES-2025-0048.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        John Tirpak, U.S. Fish and Wildlife Service, Division of Conservation and Classification; 703-358-2163; 
                        <E T="03">john_tirpak@fws.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:
                    <PRTPAGE P="45663"/>
                </HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The Endangered Species Act of 1973, as amended (hereafter referred to as the Act or ESA; 16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ), states that the purposes of the Act are to provide a means to conserve the ecosystems upon which endangered species and threatened species (listed species) depend, to provide a program for the conservation of listed species, and to achieve the purposes of certain treaties and conventions (16 U.S.C. 1531(b)). Moreover, the Act states that it is the policy of Congress that all Federal departments and agencies shall seek to conserve endangered species and threatened species and shall use their authorities to further the purposes of the Act (16 U.S.C. 1531(c)(1)).
                </P>
                <P>The Secretaries of the Interior and Commerce (Secretaries) share responsibilities for implementing most of the provisions of the Act. Generally, marine and anadromous species are under the jurisdiction of the Secretary of Commerce, and all other species are under the jurisdiction of the Secretary of the Interior. Authority to administer the Act has been delegated by the Secretary of the Interior to the Director of the FWS and by the Secretary of Commerce to the Assistant Administrator for the National Marine Fisheries Service (NMFS) (collectively, the Services). Together, the Services administer the Act via joint regulations in chapter IV of title 50 of the Code of Federal Regulations (CFR). In addition, each of the Services also has regulations specific to its own administration of the Act (located at 50 CFR part 17 for FWS and at 50 CFR parts 222 through 226 for NMFS). Because this rulemaking applies only to the FWS, the regulations in this rulemaking do not require NMFS to change its processes for consideration of exclusions under section 4(b)(2) of the Act. Since this rulemaking is solely applicable to the FWS, when we refer to the Secretary, we mean the Secretary of the Interior.</P>
                <P>The regulations in this rule provide criteria or otherwise clarify the processes by which the FWS will implement various statutory requirements set forth in section 4 of the Act. This rule is intended to provide the public with a clear, transparent explanation of how we are revising the ESA regulations in 50 CFR part 17. These regulatory guidelines are based on our expertise in evaluating and protecting species, as well as in employing traditional tools of statutory interpretation that the courts have outlined.</P>
                <P>One of the tools that the Act provides to conserve species is the designation of critical habitat. The purpose of critical habitat is to identify the areas that are essential to the listed species' conservation. When the Services determine that a species warrants listing, the Act requires the Services to designate critical habitat concurrently with the listing rule to the maximum extent prudent and determinable, or up to 1 year following listing if critical habitat was not initially determinable. Critical habitat is defined in section 3 of the Act as: (1) the specific areas within the geographical area occupied by the species at the time it is listed on which are found those physical and biological features (I) essential to the conservation of the species and (II) which may require special management considerations or protections; and (2) specific areas outside the geographic area occupied by the species at the time it is listed upon a determination by the Secretary that such areas are essential for the conservation of the species (16 U.S.C. 1532(5)).</P>
                <P>Unless the FWS concludes that a critical habitat designation is not prudent and determinable for species listed under the Act, we must follow the statutory and regulatory provisions to designate critical habitat. The Act's language makes clear that biological considerations drive the initial step of identifying critical habitat. Section 4(b)(2) expressly requires designations to be made based on the best scientific data available. Therefore, the designation process begins by relying on the best scientific data available to identify the species' habitat. Next, the Act's definition of “critical habitat” requires the Secretary to identify those areas of habitat occupied by the species at the time of listing that contain physical or biological features that are essential to the conservation of the species and that may require special management considerations or protection, and the specific areas of unoccupied habitat that are essential to the conservation of the species.</P>
                <P>Section 4(b)(2) also requires that, in designating critical habitat, the Secretary must take into consideration the impacts of specifying any particular area as critical habitat (16 U.S.C. 1533(b)(2)). The second part of section 4(b)(2) then provides the Secretary the authority to exclude any particular area from a critical habitat designation if the benefits of exclusion outweigh the benefits of inclusion for that area, so long as excluding it will not result in the extinction of the species. Our regulations in 50 CFR part 424 set forth relevant definitions (50 CFR 424.02), describe the standards and procedures for identifying critical habitat (50 CFR 424.12), and describe the standards and procedures for impact analysis and exclusions of particular areas of critical habitat (50 CFR 424.19). In addition to our joint regulations, the Services developed the joint Policy Regarding Implementation of Section 4(b)(2) of the ESA that provided direction regarding how the Services would exercise discretion to exclude areas from critical habitat designations (81 FR 7226, February 11, 2016; hereafter “2016 policy”). The 2016 policy describes how we consider “other relevant impacts,” including conservation plans, agreements, and partnerships, when designating critical habitat. On December 18, 2020, we finalized FWS-only regulations that set forth a process for excluding areas of critical habitat under section 4(b)(2) of the Act (85 FR 82376; hereafter “the 2020 rule”), superseding the 2016 policy and 50 CFR 424.19. Then on July 21, 2022, we rescinded those regulations (87 FR 43433; hereafter “the 2022 rescission”). We again are revising the regulations pertaining to exclusions of particular areas of critical habitat under section 4(b)(2) of the ESA.</P>
                <P>
                    In our 2025 proposed rule (90 FR 52592, November 21, 2025) we referred to an Executive Order (E.O.) as the impetus for reviewing and revising the regulations that pertain to excluding areas from critical habitat under section 4(b)(2). E.O. 14154, “Unleashing American Energy,” issued January 20, 2025, directed all departments and agencies to immediately review agency actions that potentially impose an undue burden on the identification, development, or use of domestic energy resources, and, as appropriate and consistent with applicable law, consider suspending, revising, or rescinding agency actions that conflict with this national objective. To implement provisions of E.O. 14154, the Department of the Interior subsequently issued Secretary's Order (S.O.) 3418, which directed Assistant Secretaries to take steps, as appropriate, to suspend, revise, or rescind multiple actions that had been finalized under the prior Administration. While E.O. 14154 and S.O. 3418 initiated our review, our goal in revising these regulations was to determine how best to designate critical habitat for endangered species and threatened species in compliance with section 4(b)(2) of the Act while also considering our experience administering the Act and the Administration's priorities. Based on our evaluation, and for reasons discussed in more detail below, we revise 50 CFR part 17.
                    <PRTPAGE P="45664"/>
                </P>
                <P>
                    This rule is one of two rules publishing in today's 
                    <E T="04">Federal Register</E>
                     that revise the regulations that implement the Act.
                </P>
                <HD SOURCE="HD1">Changes From Proposed Rule</HD>
                <P>We made two minor changes in the regulatory text. The first is at 50 CFR 17.90(d)(1) in which we have changed the phrase “the FWS's expertise” to “the Service's expertise.” We made this change for consistent use of “Service” throughout the regulatory text. The second change is at 50 CFR 17.90(d)(2), in which we have changed the word “assign” to “give.” This ensures consistency with 17.90(d)(1). We did not intend for the regulatory text to be inconsistent between paragraphs (d)(1) and (d)(2) and have changed paragraph (d)(2) to be consistent with the regulatory text finalized in 2020. Further we want to avoid any potential misconception that we would quantify the weight of a particular impact when designating a specific area as critical habitat.</P>
                <HD SOURCE="HD1">Regulatory Revisions</HD>
                <P>This rule provides the framework for the FWS's consideration of the economic impact, impact on national security, and any other relevant impacts of specifying any particular area as critical habitat under section 4(b)(2) of the Act and for the FWS's process for identifying any exclusions of particular areas from designations of critical habitat.</P>
                <P>Once the Secretary has assessed the relevant impacts of designating particular areas as critical habitat, section 4(b)(2) authorizes the exclusion of any area from the designation if the Secretary determines that the benefits of excluding the area outweigh the benefits of including the area in the critical habitat designation (unless failure to designate the area will result in the extinction of the species) (16 U.S.C. 1533(b)(2)). The FWS refers to this comparative weighing of the impacts of excluding and including particular areas under 4(b)(2) as an “exclusion analysis.”</P>
                <P>
                    To undertake an exclusion analysis, we first evaluate whether there are any meaningful impacts from designating any area such that avoiding those impacts may outweigh the benefits of including the area in the designation. If there are no such impacts that we are aware of or have been identified through public comments, there is no need to proceed further with weighing the impacts of designation. If there are any such impacts, we undertake a comparative weighing of those impacts. The ESA does not prescribe any elements of or methods for the analysis, such as the weight to give each factor or impact in determining the benefits of inclusion and the benefits of exclusion. Therefore, in completing the exclusion analysis, as long as the FWS has considered all the relevant impacts, in a manner that is not arbitrary or capricious under the Administrative Procedure Act (APA; 5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ), the ESA affords the Secretary broad discretion in deciding whether or not to exclude any area for which the benefits of exclusion outweigh the benefits of inclusion.
                </P>
                <P>
                    As stated above, these regulations apply to the considerations under section 4(b)(2) of the ESA and determinations whether to exclude particular areas of critical habitat from a final critical habitat designation. However, given existing case law, we seek to clarify that these regulations do not apply to section 4(a)(3) of the ESA, which requires the designation of critical habitat “to the maximum extent prudent . . .”. Previous statements made with respect to how we anticipated interpreting section 4(a)(3) likely contributed to confusion regarding the relationship between 4(b)(2) and 4(a)(3), leading a few courts to determine that we had not conducted the proper analysis under 4(b)(2) when finding critical habitat was not prudent for a given species. See 
                    <E T="03">Natural Resources Defense Council</E>
                     v. 
                    <E T="03">U.S. Dep't of the Interior,</E>
                     113 F.3d 1121, 125 (9th Cir. 1997) (hereafter “
                    <E T="03">NRDC</E>
                    ”) (citing 49 FR 38900 at 38903, October 1, 1984) (noting that the Services would balance the risks to the species of designating versus the benefits that might derive from designation and would forgo designations of critical habitat where the possible adverse consequences would outweigh the benefits). See also 
                    <E T="03">Conservation Council of Hawaii</E>
                     v. 
                    <E T="03">Babbitt,</E>
                     2 F. Supp. 2d 1280 (D. Hawaii 1998) (hereafter “
                    <E T="03">Conservation Council of Hawaii</E>
                    ”); and 
                    <E T="03">Center for Biological Diversity and Healthy Gulf</E>
                     v. 
                    <E T="03">U.S. Fish and Wildlife Service,</E>
                     792 F. Supp. 3d 50 (D.D.C. 2025) (hereafter “
                    <E T="03">CBD and Healthy Gulf</E>
                    ”). The legislative history discussing prudency under what is now section 4(a)(3) refers to circumstances where a designation would not be in the best interest of the species (
                    <E T="03">Center for Biological Diversity, et al.</E>
                     v.
                    <E T="03"> U.S. Department of the Interior, et al,</E>
                     2026 WL 898264, at *22 (N.D. Cal. Mar. 30, 2026)) and does not include any reference to consideration of economic impacts and other factors. The legislative history that discusses section 4(b), however, notes that while prior to the 1978 amendments, the determination of critical habitat had been a purely biological question. Under the amended text of section 4(b)(2), economics and other relevant impacts, including impacts to the public, must be considered in setting the limits of critical habitat (H.R. Rep. No. 95-1625, at 16-17 (1978), as reprinted in 1978 U.S.C.C.A.N. 9453, 9466-67).
                </P>
                <P>
                    The reference in the legislative history to what is now 4(b)(2) makes clear that critical habitat is only designated after impacts to human activity are considered, which includes considerations of the impacts to the public from a designation. Additionally, the language of 4(a)(3)(A) states that the FWS shall “designate” critical habitat to the maximum extent prudent, which implies that a determination that critical habitat is not prudent is not a “designation.” The language in 4(b)(2) then is directed to “designations” and considerations for excluding specific areas from a designation. Given the plain language of the Act and the context of the legislative history, a decision that critical habitat is not prudent must rest on considering whether designation is in the best interest of the species and its conservation; whereas, during the course of actually designating critical habitat, the Services must consider economic and other relevant impacts pursuant to section 4(b)(2). Though sections 4(a)(3) and 4(b)(2) cross-reference each other, their functions are distinct: section 4(a)(3) provides that (unless the Secretary determines that designating critical habitat is not prudent) critical habitat must be designated in accordance with 4(b) and reinforces the timeline (
                    <E T="03">i.e.,</E>
                     concurrently with listing) of designating critical habitat.
                </P>
                <P>
                    As the court holdings in 
                    <E T="03">NRDC</E>
                     113 F.3d at 1125, 
                    <E T="03">Conservation Council of Hawaii</E>
                     2 F. Supp. 2d at 1287-88, and 
                    <E T="03">CBD and Healthy Gulf</E>
                     at 792 F. Supp. 3d at 66 demonstrate, when considering whether a designation of critical habitat is not prudent, the Services must take into account the specific factual circumstances at issue for each species including consideration of the risks and benefits of the critical habitat designation as a whole rather than individual areas. However, this does not require the Services to engage in the type of area-by-area weighing process that applies under section 4(b)(2) of the Act.
                </P>
                <HD SOURCE="HD2">Summary</HD>
                <P>
                    As mentioned earlier, the Services' joint regulations at 50 CFR 424.19 describe the standards and procedures for impact analysis and exclusions of 
                    <PRTPAGE P="45665"/>
                    particular areas of critical habitat, and the non-binding 2016 policy provides direction regarding how the Services would consider partnerships and conservation plans, conservation plans under section 10 of the ESA, Tribal lands, Federal lands, economic impacts, and national and homeland security impacts in the exclusion process under section 4(b)(2) of the ESA. We have concluded that reinstating our FWS-only regulations at 50 CFR 17.90 will be more effective in guiding agency activities and will provide greater transparency and certainty to the public and stakeholders and is our preferred approach. The regulations include some differences relative to what was outlined in the 2016 policy. These differences from the 2016 policy include an information standard applicable to when FWS undertakes a discretionary weighing analysis, a clarification of how considerations for exclusions will be conducted for Federal lands, and an approach for giving weight to the benefits of inclusion or exclusion of any particular areas designated as critical habitat. Additionally, as discussed in our 2020 proposed rule (85 FR 55398, September 8, 2020) we decided to revisit certain language in the preamble of the 2016 policy, as well as certain statements in the preamble to the 2013 rule that revised the regulations on the timing of our economic analyses at 50 CFR 424.19 (78 FR 53058, August 28, 2013) (hereafter “the 2013 rule”), to provide clarity to the FWS and the public in light of the Supreme Court's decision in 
                    <E T="03">Weyerhaeuser Co.</E>
                     v. 
                    <E T="03">U.S. FWS,</E>
                     586 U.S. 9 (2018) (hereafter “
                    <E T="03">Weyerhaeuser</E>
                    ”) that decisions not to exclude particular areas of critical habitat are judicially reviewable. At the time we developed the 2013 rule and 2016 policy, the Services were guided by a line of cases in which courts had held that a decision by the Services not to exclude a particular area under section 4(b)(2) of the Act was committed to agency discretion by law and therefore not subject to judicial review. The FWS is of the view that the Supreme Court's decision underscores the importance of being deliberate and transparent about how we go about making decisions to exclude areas from designations of critical habitat. For more details, please see our 2020 proposed rule and 2025 proposed rule.
                </P>
                <HD SOURCE="HD1">Effects of the Final Rule</HD>
                <P>These regulations largely adopt provisions of the 2016 policy and regulations at 50 CFR 424.19 with further clarifications in the process that FWS will use when undertaking exclusion analyses. After consideration of the information provided through the public comment process, we are finalizing this rule as proposed with the two minor changes mentioned above (see Changes From Proposed Rule). We have provided clarification to questions and concerns below in the responses to public comments.</P>
                <P>
                    In the event any provision is invalidated or held to be impermissible as a result of a legal challenge, “the remainder of the regulation could function sensibly without the stricken provision” (
                    <E T="03">Belmont Mun. Light Dep't</E>
                     v. 
                    <E T="03">FERC,</E>
                     38 F.4th 173, 187 (D.C. Cir. 2022) (quoting 
                    <E T="03">MD/DC/DE Broad. Ass'n</E>
                     v. 
                    <E T="03">FCC,</E>
                     236 F.3d 13, 22 (D.C. Cir. 2001))). Because each of the provisions stand on their own, the FWS views each of the provisions as operating independently from the other provisions. Thus, should a reviewing court invalidate any particular provision(s) of this rulemaking, the remaining provisions would still allow the FWS to exclude particular areas from critical habitat designations. Specifically, these distinct provisions include: (1) impact analysis procedures, (2) consideration of economic impacts, national security, and other relevant impacts, (3) when the Secretary will conduct an exclusion analysis, (4) weighing of the benefits of inclusion and exclusion, and (5) when the Secretary shall exclude an area. In the event that any portion of this final rule is held to be invalid or impermissible, the FWS intends that the remaining aspects of the regulatory provisions be severable.
                </P>
                <P>
                    In finalizing the specific changes to the current regulations in the rule portion of this document and setting out the accompanying clarifying discussion in this preamble, we are establishing prospective standards only. These regulations will supersede the 2016 policy and regulations at 50 CFR 424.19 for FWS; and they will apply to FWS critical habitat rules finalized after the effective date of this rule and will not apply retroactively to critical habitat rules finalized prior to the effective date of this rule. For the effective date of this rule, see 
                    <E T="02">DATES</E>
                    , above. Nothing in these revisions to the regulations is intended to require that any critical habitat designations be reevaluated on the basis of these final regulations.
                </P>
                <HD SOURCE="HD1">Summary of Comments and Responses</HD>
                <P>In our November 21, 2025, proposed rule (90 FR 52592), we requested public comments by December 22, 2025. We received a total of 12,532 submissions, representing approximately 306,628 individuals, by the close of the comment period. Commenters included individual members of the public, representatives from States, Tribes, industry organizations, and environmental organizations, among others.</P>
                <P>During the public comment period, we received several requests for public hearings. Public hearings are not required for regulation revisions of this type, and we elected not to hold public hearings. We also received several requests for extensions of the public comment period. However, we elected not to extend the public comment period beyond the original 30-day public comment period because we found the 30-day comment period provided sufficient time for a thorough review of the proposed revisions. The APA does not specify a minimum number of days for a comment period, but the comment period must be long enough to afford the public a meaningful opportunity to comment. In this case, with a 30-day public comment period, the public had a meaningful opportunity to comment on the proposed rule, as demonstrated by the thousands of comments received.</P>
                <P>The revisions are to portions of the regulations that were previously revised in 2020 and 2022. The number of comments received indicate that members of the public were aware of the proposed rule and had adequate time to review it. In addition, we provided five informational sessions for a wide variety of audiences. Over 2,100 attendees participated in these sessions, and we addressed questions from the participants as part of the sessions. Finally, on our website, we provided additional information about the regulations, such as frequently asked questions and a prerecorded presentation on the proposed revisions.</P>
                <P>
                    Most of the submissions were nonsubstantive in nature, expressing either general opposition to or support for the proposed rule with no supporting information or analysis. Other comments expressed opinions regarding topics not covered within the proposed regulation. We also received several hundred letters with detailed substantive comments with specific rationales for support of or opposition to specific portions of the proposed rule. We also received comments that were outside the scope of the rulemaking such as comments regarding litigation on other ESA regulations (
                    <E T="03">Center For Biological Diversity</E>
                     v. 
                    <E T="03">Dep't of the Interior,</E>
                     2026 WL 898264, at *22 (N. D. Cal. Mar. 30, 2026)) that are pending and that we are not responding to here. Below, we summarize and respond to the significant, substantive comments we received.
                    <PRTPAGE P="45666"/>
                </P>
                <HD SOURCE="HD2">Framework for Considering an Exclusion and for Conducting a Discretionary 4(b)(2) Exclusion Analysis (§ 17.90(a))</HD>
                <P>
                    <E T="03">Comment 1:</E>
                     Some commenters stated that the Service should engage with appropriate State and other authorities to the maximum extent practicable in exclusion analysis and prior to publishing a proposed critical habitat designation. Commenters suggested that we include additional regulatory text to include a process for consulting with and considering input from State fish and wildlife agencies, local governments, small businesses, and Tribal governments to identify economic, biological, and other relevant impacts.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We routinely coordinate with partners and stakeholders (
                    <E T="03">e.g.,</E>
                     State natural resource agencies, Federal agencies, Tribes) before and after a species is listed and critical habitat is designated. For example, we coordinate during the development of a species status assessment which informs our evaluation of whether to list a species as well as possible areas for designation as critical habitat if listing is warranted. We also coordinate with Federal agencies during the development of the draft economic analysis prior to the publication of the proposed critical habitat rule. Through these coordination efforts, we typically receive information from State and Federal agencies regarding potentially relevant impacts early in our development of a critical habitat designation. Additionally, during the public comment period for a proposed critical habitat designation, we receive information regarding other potentially relevant economic or other impacts from a variety of sources (for example, State agencies, local governments, small businesses, private individuals and Tribal governments) that we consider when finalizing the designation. In addition, language in the ESA or other authorities already require the Services to coordinate and seek input from States, Tribes, and local governmental agencies. For instance, the requirements regarding coordination with States and counties in section 4(b)(5)(A)(ii) of the Act are already included in our regulations at 50 CFR 424.16(c). The Services also have a joint policy, “Interagency Policy Regarding the Role of State Agencies in ESA Activities,” which was developed in coordination with the State fish and wildlife agencies, that outlines our commitment to engagement and collaboration among the Services and State fish and wildlife agencies on many aspects of ESA implementation, including listing species (81 FR 8663, February 22, 2016). We conclude that our current process provides for coordination with potentially affected parties, and it is unnecessary to codify it in regulation.
                </P>
                <P>
                    <E T="03">Comment 2:</E>
                     We received multiple comments regarding public involvement and transparency of exclusion analyses for future critical habitat rulemakings. For example, some commenters stated that we should allow comments on the draft economic analysis and on our evaluation of any relevant impact of including or excluding areas from critical habitat. Other commenters appreciated the requirement for the Service to publish for public comment the draft economic analysis suggesting it would add transparency to the process. Finally, other commenters suggested that rather than merely considering the economic impacts of designating critical habitat, the Service now has to conduct an exhaustive economic analysis of the overall proposed designation and conduct a full public comment process on the economic analysis before the critical habitat can be designated which would pose a significant burden on the agency. Commenters suggested additional regulatory text to require documentation of specific evidence when we rebut information provided by the public or to allow the public to comment on any relevant factor regarding a designation and not just the economic analysis.
                </P>
                <P>
                    <E T="03">Response:</E>
                     With respect to public comment, we always seek comment on any proposed critical habitat designation regarding a wide range of issues, including biological factors that may inform the proposed designation and non-biological considerations that may inform potential exclusions from the final designation. We do not limit the scope of public comment to economic considerations; all relevant substantive comments are considered when developing a final critical habitat designation. We also already make the draft economic analysis of the proposed critical habitat designation available as supplemental information on 
                    <E T="03">Regulations.gov</E>
                     concurrently with publication of the proposed rule to designate critical habitat. The regulations we are finalizing at 50 CFR 17.90 will not change this existing practice. During the public comment period for a proposed critical habitat designation, the public has the opportunity to review and comment on the draft economic analysis, as well as on any other relevant impacts from the designation. Because we already request public comment on all areas of the rulemaking whenever we propose to designate critical habitat, modifying the regulation to require the Service to request comments on any relevant impacts, including non-economic impacts, is duplicative and unnecessary. Also, regarding documentation of evidence, regardless of whether we exclude an area or not, whenever we conduct a weighing analysis we detail what was considered within our final rules for the critical habitat designation. We decline to include additional regulatory text regarding this aspect of the process.
                </P>
                <P>
                    <E T="03">Comment 3:</E>
                     Many commenters support inclusion of the non-exhaustive list of categories of potential impacts described at 50 CFR 17.90(a). Commenters stated that lists provide transparency and clarity and allow focused public comments while being adaptable to specific situations. Other commenters stated that the rule sets forth an unlawfully broad list of impacts. For example, for “economic impacts” they cited our example of “opportunity costs arising from the critical habitat designation (such as those anticipated from reasonable and prudent alternatives that may be identified through a section 7 consultation),” and “impacts to . . . Federal lands” (90 FR 52592 at 52599, November 21, 2025) which they point out would include routine regulatory costs that will exist for most areas of proposed critical habitat and therefore would be likely to result in a significant reduction in the number and extent of critical habitat designations. Others suggest the examples of “other relevant impacts” provides a nearly unlimited basis for exclusions. Some highlighted “community interests” as redundant, or subjective and vague.
                </P>
                <P>Additionally, many commenters recommended revisions to regulatory text describing impacts. For example, commenters suggested that we add to or elaborate on the potential impacts listed in the proposed regulations, such as direct and indirect impacts, foreseeable delays in permitting, and economic effects on developers and builders. Commenters requested explicit inclusion of impacts to Tribes including treaty-reserved rights and the Federal trust responsibilities as other relevant impacts. Commenters suggested that we remove the term “nonbiological” in paragraphs (d)(1)(i), (d)(1)(ii), and (d)(1)(iv) or rephrase to expressly acknowledge and allow for external input within the Service's areas of expertise as well as outside it.</P>
                <P>
                    <E T="03">Response:</E>
                     We will evaluate on a case-by-case basis any information that is submitted by a proponent of an exclusion to determine whether they 
                    <PRTPAGE P="45667"/>
                    have presented credible information regarding the existence of a meaningful economic or other relevant impact supporting a benefit of exclusion for that particular area. Therefore, with the application of the credible information standard, we anticipate that not every submission by a proponent of an exclusion would meet the standard of having a meaningful impact and thereby trigger an exclusion analysis.
                </P>
                <P>We decline to make additional regulatory text revisions. The text of the regulation is clear that the examples of potential impacts provided at 50 CFR 17.90(a) are not exhaustive and “other relevant impacts” may include but are not limited to impacts to Tribes, States, local governments, public health and safety, community interests, the environment (such as increased risk of wildfire or pest and invasive species management), Federal lands, and conservation plans, agreements, or partnerships. Based on the specific facts in particular critical habitat designations, there may be other impacts identified, and we would consider those impacts.</P>
                <P>
                    The phrase “other relevant impacts” in the Act gives the Secretary broad discretion to determine what those other relevant impacts might be. The discretionary exclusion authority is thoroughly described in Solicitor's Memorandum Opinion M-37016, “The Secretary's Authority to Exclude Areas from a Critical Habitat Designation under Section 4(b)(2) of the Endangered Species Act,” (
                    <E T="03">https://www.doi.gov/sites/doi.opengov.ibmcloud.com/files/uploads/M-37016.pdf</E>
                    ) (October 3, 2008, p. 12), and the list provided in the preamble to the proposed rule and in the final regulatory text of this rule illustrates the types of information we may consider. Furthermore, subparagraphs (i)-(iv) in paragraph (d)(1) identify a non-exhaustive list of categories of impacts that may be outside the scope of the Service's expertise. Even though some of the categories on this list refer to “nonbiological impacts,” we recognize that many sources outside of the Service also have information and expertise regarding biological impacts. The Service would consider that information or expertise in the weighing of benefits of inclusion or exclusion of particular areas.
                </P>
                <P>
                    <E T="03">Comment 4:</E>
                     Commenters stated that the proposed rule's non-exhaustive list of “other relevant impacts” and economic impacts is heavily weighted toward negative impacts of designating critical habitat on the community and other stakeholders. They state the list does not include the potential economic and community benefits, for example, socio-economic benefits, cultural or other ecological benefits, or co-benefits (such as protection of other species), that may be distinct from the “conservation value of the area.” Commenters requested that full economic accounting of future designations include these potential benefits.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We are not limited to considering the examples of impacts (economic or otherwise) included in this rule. If the specific facts indicate that there are economic benefits from including a particular area in the designation, we will consider those benefits, as appropriate. In situations where economic benefits are relevant, we generally describe two broad categories of benefits of inclusion of particular areas of critical habitat: (1) those associated with the primary goal of species conservation and recovery, and (2) those that derive from the habitat conservation measures to achieve this primary goal. In the cases where there are incremental impacts beyond administrative impacts from designating critical habitat, we may lack specific information to quantify the use or non-use benefits associated with critical habitat designations such as recreation, wildlife viewing, or ecosystem services but can discuss them qualitatively, as per Office of Management and Budget (OMB) Circular A-4 guidance. As a result, when we lack quantitative data we focus our analysis of benefits of inclusion qualitatively to describe the conservation value of the particular area of critical habitat as weighed against the benefits of exclusion.
                </P>
                <P>
                    <E T="03">Comment 5:</E>
                     Commenters stated that the proposed rule does not address the impacts of excluding an area necessary to the recovery of a species and that impacts on recovery should be addressed because the goal of the Act is ultimately to recover and delist the species. Multiple comments highlight that incremental exclusions, each deemed non-extinction-causing, can collectively degrade ecosystems and recovery potential, contrary to the mandate of the Act. Commenters requested an evaluation of the cumulative effects of exclusions, rather than on a case-by-case basis. Others requested that proposed critical habitat designations essential for future climate adaptation be prohibited from exclusion.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We note that critical habitat is one of many tools available to conserve species, and the exclusion of an area from a critical habitat designation does not mean that the area can no longer contribute to conservation. In fact, we have excluded many areas because they are already being managed for the conservation of a species, thereby reducing the benefits of including those areas within a critical habitat designation. Even though these areas are excluded from critical habitat designations, they will still contribute to the recovery of the species.
                </P>
                <P>We consider the potential effects to species' recovery when we enter into an exclusion analysis under section 4(b)(2) of the Act. In giving weight to the benefits of including and excluding particular areas, we evaluate the conservation value of the area, including the current function of the area for the species and the future recovery value of the area to the species. Benefits of including or excluding an area from critical habitat are considered for each designation, are fact-specific to each species, and take into consideration the best scientific data available for the species.</P>
                <P>With regards to evaluating the cumulative effects of individual exclusions for a critical habitat designation, the Act is clear that we are required to take into consideration the economic impact, the impact on national security, and any other relevant impact, of specifying any particular area as critical habitat. And as for the suggestion to prohibit any exclusions of critical habitat that may be important to provide areas for climate change adaptation, the Act does not contemplate any such prohibition, and we decline to include it in regulation.</P>
                <P>
                    <E T="03">Comment 6:</E>
                     Commenters cite the statutory requirement that the appropriate scale of an exclusion analysis is of the “particular area” of a proposed critical habitat designation and note that this is in conflict with the proposed rule allowing the Secretary to determine the appropriate scale for the consideration of impacts from a critical habitat designation. Many comments emphasize that the “particular area” should be a localized scale, such as individual parcels or counties rather than broad regional or national scales.
                </P>
                <P>Some commenters state that scale decisions should be based on species' biological needs, not external economic or political factors. Other commenters suggest that the Secretary should retain the discretion to determine exclusions at whatever scale he deems to be appropriate, to specifically state what that scale is in the proposed rule when making a critical habitat designation, and to take into full consideration the economic impacts at that scale.</P>
                <P>
                    <E T="03">Response:</E>
                     We decline to define a scale for an exclusion analysis. If we 
                    <PRTPAGE P="45668"/>
                    were to suggest a consistent scale, it would need to be broad or generic to adequately address each species' situation and data availability which would not ultimately provide the desired clarity. The Service must have flexibility to evaluate these “particular areas” of critical habitat at whatever scale is appropriate to each situation. Each critical habitat proposal includes a description of the scope of the area being proposed and often includes “particular areas” that are being considered for exclusion and the Service then uses the scale of analysis appropriate to that situation. In one case, the court upheld the Service's analysis at the “subunit” level rather than individual parcels that the plaintiff argued was required (
                    <E T="03">Otay Mesa Prop. L.P.</E>
                     v. 
                    <E T="03">DOI,</E>
                     714 F. Supp. 2d 73, 84 (D.D.C. 2010) (rev'd on other grounds (646 F.3d 914 (D.C. Cir. 2011))).
                </P>
                <P>
                    <E T="03">Comment 7:</E>
                     Commenters stated that use of the incremental approach to assessing impacts of critical habitat prevents consideration of the full costs of a critical habitat designation. They requested that we include all economic impacts of a listing in our economic assessment following the coextensive approach, rather than limiting it to the incremental effects of critical habitat designation (citing 
                    <E T="03">Skipper</E>
                     v. 
                    <E T="03">United States Fish &amp; Wildlife Serv.,</E>
                     796 F. Supp. 3d 996, 1006 (D. Ala 2025) (hereafter “
                    <E T="03">Skipper</E>
                    ”)).
                </P>
                <P>
                    <E T="03">Response:</E>
                     The 2013 rule revisions to 50 CFR 424.19 codified the use of the “incremental analysis” or “baseline approach” method for conducting impact analyses, including economic, national security, or other relevant impacts analyses, for critical habitat designations. That final rule contains responses to public comments that clearly lay out the Services' rationale for using the incremental analysis method (78 FR 53058 at 53067, August 28, 2013). Evaluating incremental impacts that result from a regulation being promulgated, rather than considering coextensive impacts that may be ascribed to other regulations, is further supported by E.O. 12866, as applied by OMB Circular A-4. Agencies should identify the baseline to describe how the world would look in the absence of the proposed action. Identifying this baseline is necessary to allow assessment of the relative benefits and costs attributable to the proposed action (Regulatory Impact Analysis: Frequently Asked Questions (FAQs), February 7, 2011). In addition, a court decision addressing this question confirmed the validity of evaluating incremental impacts of critical habitat designations in the Tenth Circuit. See 
                    <E T="03">Northern New Mexico Stockman's Ass'n</E>
                     v. 
                    <E T="03">United States Fish &amp; Wildlife Serv.,</E>
                     30 F.4th 1210 (10th Cir. 2022) which concludes that the Service's incremental impacts approach was permissible in light of regulatory changes that post-dated the Tenth Circuit decision that had required coextensive approach. Recently, in 
                    <E T="03">Skipper,</E>
                     a district court “adopted the reasoning” of an earlier Tenth Circuit decision in 
                    <E T="03">New Mexico Cattle Growers Ass'n</E>
                     v. 
                    <E T="03">U.S. Fish and Wildlife Service,</E>
                     248 F.3d 1277, 1285 (10th Cir. 2001) (hereafter “
                    <E T="03">New Mexico Cattle Growers”</E>
                    ) which invalidated the Service's “baseline approach” to assessing the economic costs of critical habitat designations wherein the Service isolated the anticipated costs to those attributable solely to the designation itself. The 
                    <E T="03">Skipper</E>
                     court noted an apparent circuit split and distinguished 
                    <E T="03">New Mexico Cattle Growers</E>
                     from a Ninth Circuit decision that upheld the Service's use of the baseline approach. See 
                    <E T="03">Arizona Cattle Growers' Ass'n</E>
                     v. 
                    <E T="03">Salazar,</E>
                     606 F.3d 1160 (9th Cir. 2010). In 2022, however, following revision of the relevant regulatory definitions in effect at the time of the 2001 
                    <E T="03">New Mexico Cattle Growers</E>
                     decision, the Tenth Circuit issued a decision upholding the Service's use of the baseline methodology and, in doing so, resolved the previous circuit split. See 
                    <E T="03">Northern New Mexico Stockman's Ass'n</E>
                     v. 
                    <E T="03">U.S. Fish and Wildlife Service,</E>
                     30 F.4th 1210, 1227 (10th Cir. 2022). The 
                    <E T="03">Skipper</E>
                     court failed to consider this development in its summary judgment opinion and order and Intervenor-Defendants moved for reconsideration, relying on the 2022 Tenth Circuit opinion; the court has not yet ruled on that motion.
                </P>
                <HD SOURCE="HD2">Considering Relevant Impacts (§ 17.90(b))</HD>
                <P>
                    <E T="03">Comment 8:</E>
                     Some commenters supported the proposed language at 50 CFR 17.90(b). However, some suggested that we should not consider economic or national security impacts when designating critical habitat. Others suggested the inclusion of the current language “probable economic, national security, and other relevant impacts” requires less certainty compared to the “clear and substantial” evidence requirement proposed for section 7 consultations at 50 CFR 402 or the proposed foreseeable future requirements at 50 CFR 424.11. Commenters are concerned the language will result in the Service prioritizing nonbiological impacts when weighing impacts. Commenters describe the need for evidentiary guardrails such that information used should be objective, rigorous, and consistent with “best available scientific and commercial data” mandate.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Section 4(b)(2) of the Act requires us to take into consideration the economic impact, the impact on national security, and any other relevant impact, of specifying any particular area as critical habitat. We include “probable” from 50 CFR 424.19 as it provides guidance that the Service should not consider improbable or speculative impacts. However, as discussed in our 2013 rule (78 FR 53058, August 28, 2013), we do not intend that the term “probable” requires a showing of statistical probability or any specific numeric likelihood. Moreover, the “activities” at issue are only those that would require consultation under section 7 of the Act. Although impact analyses are based on the best scientific data available, any predictions of future impacts are inherently uncertain and subject to change. Thus, the Service will consider the likely impact of the designation using our experience administering the ESA and conducting section 7 consultations and will not make specific predictions about the outcome of particular section 7 consultations that have not been completed.
                </P>
                <P>Realistically, the Service can only consider activities likely to occur, which we interpret for purposes of this rule to mean the same thing as the term “probable.” This use of “probable” reflects a reasonable interpretation of the statute. Furthermore, as stated in OMB Circular A-4, the assumptions of the analysis must be clearly articulated and should avoid speculation when assessing costs and benefits of a regulation. We use the best available information in our consideration of impacts of a critical habitat designation and fully describe the methods, assumptions, and results in our draft economic analysis.</P>
                <HD SOURCE="HD2">Approach To Determining Whether To Conduct a Discretionary Exclusion Analysis (§ 17.90(c))</HD>
                <P>
                    <E T="03">Comment 9:</E>
                     Some commenters interpreted the proposed rule as creating a provision that requires the Secretary to waive his discretion on whether to conduct an exclusion analysis given (1) the presence of the “credible information” trigger to enter into an exclusion analysis, and (2) the language “will conduct” which makes exclusion analyses mandatory whenever credible information is presented. Other commenters argue that exclusion analyses are already mandatory. Some cite 
                    <E T="03">Weyerhaeuser</E>
                     in stating that the regulation should include language 
                    <PRTPAGE P="45669"/>
                    requiring documentation of any rationale for not performing an exclusion analysis and, if an analysis is conducted, providing rationale for not excluding areas.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Under this rule, the Secretary will conduct an exclusion analysis when credible information regarding the existence of a meaningful economic or other relevant impact supporting a benefit of exclusion for that particular area has been presented or whenever the Secretary otherwise decides to exercise discretion to evaluate any particular area for possible exclusion. The rule does not waive the Secretary's discretion; instead, the regulation constitutes the Secretary's decision on how to exercise his discretion under the Act on a consistent comprehensive basis.
                </P>
                <P>
                    We decline to include additional regulatory text requiring documentation of our rationale. As discussed in both the 2020 and 2025 proposed rules, and in accordance with 
                    <E T="03">Weyerhaeuser,</E>
                     the Service will document the basis for any decision whether or not to undertake an exclusion analysis in the final determination regarding critical habitat for the species.
                </P>
                <P>
                    <E T="03">Comment 10:</E>
                     Some commenters expressed concern that the proposed rule would reduce the Secretary's discretion as to whether to conduct an exclusion analysis because it would collapse the second step (the discretionary exclusion analysis) of the critical habitat designation process into the first step (the requirement to take into consideration economic and other relevant impacts). One commenter suggested the Service include additional fact patterns that would always trigger an exclusion analysis, such as when private property is being considered for designation as critical habitat and when considering Federal lands with privately held permits or licenses. Other commenters took the contrary view, suggesting the rule should narrow the Secretary's discretion to undertake an exclusion analysis by specifying when and how he will exercise that discretion. Multiple commenters requested additional clarification as to when the Secretary may exercise his discretion to improve predictability for stakeholders and the public, reduce complexity, and improve efficiency. Some of the commenters requested that the rule eliminate the Secretary's discretion on this issue by requiring the Secretary to always conduct an exclusion analysis to determine if the benefits of exclusion outweigh the benefits of inclusion because section 4(b)(2) of the Act requires the Secretary to take economic and other relevant impacts into consideration and the balancing of impacts in the exclusion analysis is part of that consideration.
                </P>
                <P>
                    <E T="03">Response:</E>
                     As discussed in our response to 
                    <E T="03">Comment 3,</E>
                     we will evaluate on a case-by-case basis any information that is submitted by a proponent of an exclusion to determine whether they have presented credible information regarding the existence of a meaningful economic or other relevant impact supporting a benefit of exclusion for that particular area or the Secretary otherwise decides to exercise discretion to evaluate any particular area for possible exclusion. These regulation revisions neither alters the structure of section 4(b)(2) nor collapses the two sentences together—it just describes how and when the Secretary will exercise the discretion to undertake an exclusion analysis. This framework facilitates the transparent and consistent implementation of the statute. We decline to provide additional specificity at 50 CFR 17.90(c)(2) regarding when the Secretary may exercise his discretion to undertake an exclusion analysis. We will document in final rules how the Secretary has exercised his discretion whether to undertake an exclusion analysis.
                </P>
                <P>
                    <E T="03">Comment 11:</E>
                     Commenters requested that the regulation include a definition of “meaningful” economic impacts and a description of their scope, along with a requirement to use a quantitative economic assessment whenever possible. At least one commenter noted that even minimal economic impacts should be considered meaningful because they could outweigh the benefit of designation if the area provides low conservation value. Additionally, some commenters requested that only economic impacts in a defined area and only those tied to Federal actions should be considered. Multiple commenters stated that economic analyses should account for localized impacts, particularly on rural communities and private landowners, and evaluate consequences at the county level rather than only statewide or national scales, especially given concerns about energy development and county revenues.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We decline to define “meaningful,” as we intend it to have its plain-language meaning. We included the word to indicate that evidence of only de minimis impacts of designating a particular area will not trigger an exclusion analysis for that particular area. Our consideration of economic or other relevant impacts includes an assessment of the probable impacts of a designation. We evaluate specific land uses or activities and projects that may occur in the area of the critical habitat. These impacts are considered part of the benefits of exclusion and are balanced against the benefits of inclusion which may include the importance or conservation value of a particular area. When considering the economic impacts of critical habitat designations, we follow the guidance and best practices set out in E.O.s 12866 and 13563, as well as OMB Circular A-4. Those guidelines direct Federal agencies to assess the costs and benefits of available regulatory alternatives in quantitative (to the extent feasible, including monetization) and qualitative terms.
                </P>
                <P>Consistent with these E.O. regulatory analysis requirements, our effects analysis under the Act may take into consideration impacts to both directly and indirectly affected entities, where practicable and reasonable. To determine whether the designation of critical habitat may have an economic effect of $100 million or more in any given year, which would trigger section 3(f)(1) of E.O. 12866, we use a screening analysis to assess whether a designation of critical habitat is likely to exceed this threshold. This analysis can also assist with compilation of information that may be useful for exclusion analyses under section 4(b)(2).</P>
                <P>
                    As part of this process, we first develop an incremental effects memorandum (IEM) considering the probable incremental economic impacts that may result from a proposed designation of critical habitat. The information contained in our IEM is then used to develop the screening analysis of the probable effects of the designation of critical habitat. The screening analysis is used to focus our analysis on the key factors that are likely to result in incremental economic impacts. We invite public comment on both the IEM and screening analysis, which are made available in the docket accompanying each proposed critical habitat designation. One purpose of the screening analysis is to filter out particular geographic areas of critical habitat that are already subject to regulation due to the presence of the listed species or other similar listed species and critical habitat and are, therefore, unlikely to incur more than de minimus incremental economic impacts. Ultimately, the screening analysis allows us to focus our analysis on evaluating the specific areas or sectors that may incur probable incremental economic impacts as a result of the designation. The screening analysis combined with the information contained in our IEM constitute our 
                    <PRTPAGE P="45670"/>
                    draft economic analysis of a proposed critical habitat designation.
                </P>
                <P>
                    During the development of our draft economic analysis, we consider information at the scale available to us. With regard to including localized economic impacts, we have and will continue to conduct our exclusion analyses on the scale relevant for the analysis and based on the credible information available. We develop and share a draft of the IEM with our Federal partners that considers potential economic impacts requesting information on whether a Federal nexus may exist triggering future section 7 consultations. We request information on specific projects and the potential impacts of designations of critical habitat. When we consider potential economic impacts, we also acknowledge there may be effects to land values in areas that are designated critical habitat which may lead to an increase or a decrease in property values (see 
                    <E T="03">Comment 15</E>
                     below).
                </P>
                <P>Our draft economic analysis is only one aspect of our exclusion process. When available at the proposed rule stage, we also describe exclusions we are considering and solicit public comments on specific information that may inform those potential exclusions and other potential impacts unknown to us at the time of the proposed designation. We evaluate, on a case-by-case basis, any information submitted by a proponent of an exclusion to determine whether credible information is provided regarding the impact and whether the benefits of exclusion are presented at the appropriate scale. We will conduct a discretionary exclusion analysis when we receive a request with credible information regarding the existence of a meaningful economic or other relevant impact supporting a benefit of exclusion for that particular area or when we otherwise decide to exercise our discretion to evaluate any particular area for possible exclusion. We can then refine our consideration of the relevant impacts with information provided during a public comment period for a given rulemaking.</P>
                <P>
                    <E T="03">Comment 12:</E>
                     Commenters stated that the phrase “credible information” was ambiguous and requested the Service provide a regulatory definition, outline a clear process for soliciting this information, and clarify how this information will be evaluated. Commenters added that the proposed “credible information” standard is subjective, resulting in an unnecessary burden on the Service to perform more exclusion analyses with limited resources. Multiple commenters called for clear procedures on submission of credible information, documentation of decisions, interim steps to inform proponents whether their information qualifies, and procedures for managing confidential business data and sensitive, confidential, or national security information. Others suggest replacing the term “credible information” with “best available data.” However, some commenters noted that the standard allows the Service discretion and flexibility and recommended avoiding a regulatory definition or formal submission requirements.
                </P>
                <P>
                    <E T="03">Response:</E>
                     As stated in the 2025 proposed rule, “credible information” refers to information that constitutes a reasonably reliable indication regarding the existence of a meaningful economic or other relevant impact supporting a benefit of exclusion for a particular area. We do not consider speculative, erroneous, intentionally misleading, or unsupported information to be credible information and will use our best professional judgment to evaluate all information critically before incorporating it into any exclusion analysis. Also, as stated in response to 
                    <E T="03">Comment 11,</E>
                     above, “meaningful” indicates evidence of more than de minimis impacts of a proposed designation that would trigger an exclusion analysis. Our consideration of economic or other relevant impacts includes an assessment of the probable impacts of a designation. We decline to further define “credible information” in regulation.
                </P>
                <P>We also decline to replace the phrase “credible information” with “best available data,” as section 4(b)(2) of the Act already requires that “[t]he Secretary shall designate critical habitat . . . on the basis of the best scientific data available. . . .” In determining what constitutes “credible information,” we will look at whether the proponent has provided factual information in support of the claimed impacts. We use our IEM and screening analysis to help determine whether any economic impact information meets the credible information standard and, when appropriate, to confirm or rebut information that is provided by a proponent of an exclusion.</P>
                <P>
                    <E T="03">Comment 13:</E>
                     Commenters expressed both support and concern for identifying specific eligible proponents who can submit credible information. Some expressed concerns that an inclusive list of eligible proponents will result in outsized influence from non-conservation stakeholders with no biological expertise. Some commenters noted that the non-exhaustive list is currently focused on those with legal rights to use Federal lands. They suggest expanding the list to include proponents not engaged with a Federal entity that may be affected by critical habitat designations, including private property, counties, and industry. Others questioned whether applicants of Federal permits or funding should be treated the same as active Federal permittees or lessees, since applications do not constitute a Federal nexus or commitment.
                </P>
                <P>Multiple commenters expressed concerns that corporate or industry actors could use proprietary, unverifiable data to influence decisions, overshadowing scientific integrity. These commenters note that using information from entities with direct financial interests over independent science undermines the intentions of the Act.</P>
                <P>
                    <E T="03">Response:</E>
                     We will evaluate any information provided from outside entities on a case-by-case basis and will decide whether to conduct an exclusion analysis based on whether the proponent of an exclusion has presented credible information regarding a meaningful impact supporting a benefit of exclusion. All information submitted to us in support of exclusion will be subject to the credible information standard. Under the credible information standard, an impact must be meaningful to justify an exclusion. It is likely that some submissions will not meet this standard; each will be reviewed individually to determine if credible information shows a meaningful impact, including information from proponents of an exclusion. With regards to Federal applicants, anyone can submit credible information regarding meaningful impacts of a critical habitat designation and request an exclusion, regardless of whether they may or may not have a future Federal nexus.
                </P>
                <HD SOURCE="HD2">Approach To Conducting Discretionary Exclusion Analyses (§ 17.90(d))</HD>
                <P>
                    <E T="03">Comment 14:</E>
                     Some commenters supported adding the requirement that the Service always exclude areas from critical habitat when the costs of designating areas (
                    <E T="03">i.e.,</E>
                     benefits of exclusion) outweigh the benefits of designating those areas as critical habitat, while others said that the proposed process would prioritize economics over species protection. Some were concerned that the proposed process for analyzing potential exclusions would base critical habitat exclusion decisions on analyses of incomparable ecological benefits with economic costs and could result in prioritization of economic and 
                    <PRTPAGE P="45671"/>
                    administrative impacts over biological value and conservation benefit.
                </P>
                <P>Multiple commenters noted that the proposed regulation text did not sufficiently define benefits of critical habitat and others recommended that we clarify that benefits cannot be speculative. Additionally, some commenters requested that we determine the monetary value of species and habitats according to the ecosystem services they provide as a way to directly compare the economic costs of designation with biological benefits (some referencing OMB Circular A-4 and Natural Resource Damage Assessment valuation methods).</P>
                <P>
                    <E T="03">Response:</E>
                     When identifying the areas that meet the definition of “critical habitat,” Congress expressly prohibited the Secretaries from using anything other than the best scientific data available. However, Congress also expressly required the Secretaries to consider economic impacts, national security impacts, and other relevant impacts before finalizing the critical habitat designation. Thus, Congress intended us to consider both the biological needs of a species as well as economic and other impacts when designating critical habitat.
                </P>
                <P>As described in the 2020 proposed rule, once the Secretary has identified and considered economic, national security, and other relevant impacts, he has discretion in how to determine whether the benefits of excluding a particular area from the designation outweigh the benefits of including that area in the designation. Regarding the comments about clarifying the benefits of critical habitat, we are not limited to considering the examples included in this rule. If the facts indicate that there are economic benefits from including a particular area in the designation, we would consider those benefits, where appropriate. In situations where economic benefits are relevant, we generally describe two broad categories of benefits of inclusion of particular areas of critical habitat: (1) those associated with the primary goal of species conservation and recovery, and (2) those that derive from the habitat conservation measures to achieve this primary goal. We may lack specific information to quantify the use or non-use benefits associated with critical habitat designations such as recreation, wildlife viewing, or ecosystem services that may result from critical habitat designations, but discuss them qualitatively, as per OMB Circular A-4 guidance. As a result, we focus our analysis of benefits of inclusion qualitatively to describe the conservation value of the particular area of critical habitat as weighed against the benefits of exclusion.</P>
                <P>
                    <E T="03">Comment 15:</E>
                     Commenters stated that impacts considered in the economic or exclusion analyses should be tied to the probability of Federal nexus, as critical habitat designations affect only Federal agency actions or federally funded or permitted activities. Conversely, at least one commenter suggested that the Service must make clear that we intend to adequately analyze perceptional effects to land values in its exclusion analyses. They suggested that it is widely recognized that a critical habitat designation will immediately reduce the value and damage the salability of any private property within its boundaries due to public recognition of the potential burdens that flow from the designation of critical habitat, citing Auffhammer et al. (2020, entire) and Klick and Ruhl (2020, entire). They also suggest that while we acknowledge this phenomenon, we generally fail to quantify or meaningfully analyze impacts from perceptional effects when making exclusion decisions under section 4(b)(2).
                </P>
                <P>
                    <E T="03">Response:</E>
                     Critical habitat receives protection under section 7 of the Act through the requirement that each Federal action agency ensure, in consultation with the Service, that any action they authorize, fund, or carry out is not likely to result in the destruction or adverse modification of designated critical habitat. The section 7-related economic costs solely due to the critical habitat designation may include: costs of increased administrative efforts that result from the designation; costs of any project delays due to consideration of critical habitat; costs of conservation measures, including costs of reasonable and prudent alternatives adopted by Federal action agencies for consultations that conclude that the proposed action is likely to destroy or adversely modify critical habitat; and costs of discretionary actions that Federal agencies and applicants/permittees/project proponents or others may undertake due to the critical habitat designation.
                </P>
                <P>
                    However, within our draft economic analysis, we acknowledge incremental costs of critical habitat designations can also occur outside of the section 7 consultation process. These types of costs include triggering additional requirements or project modifications under state laws or regulations, and perceptional effects on land values. These types of costs may occur even when activities do not have a Federal nexus for consultation. In a 2023 review (Paterson and Flight, entire) of all known studies on the potential property value impacts of critical habitat, some studies identified negative property value effects of critical habitat designation (List et al. 2006, entire; Auffhammer et al. 2020, entire; and Klick and Ruhl 2020, entire), while others did not (Melstrom 2021, entire; and Mamun et al. 2023, entire). Further, some found that critical habitat can positively affect property values (Zabel and Paterson 2011, entire; Mamun et al 2023, entire). Mamun et al. (2024, entire) found that, at a national level on average, critical habitat designation has “little to no effect” on values for developed and undeveloped properties. They also examined several subsets of, or individual species', critical habitat designations (
                    <E T="03">e.g.,</E>
                     riparian species, terrestrial animals, plants, jaguar, Gunnison sage-grouse) to investigate possible changes in land values and found mixed results with some positive and some negative effects on developed or undeveloped parcels. The impact of a designation of critical habitat on parcel prices cannot be reduced to a simple, consistent narrative (Mamun et al. 2024, p. 169). In general, the literature suggests that the potential for property value impacts is species-specific and not generalizable to all critical habitat designations. Therefore, while effects on property values are possible, the likelihood, magnitude, and duration of such effects for any given designation are uncertain. Over time, as public awareness of the potential regulatory burden placed on designated lands evolves, particularly where no Federal nexus compelling a section 7 consultation exists, the effect of critical habitat designation on property values may attenuate. Existing literature provides little specific insight into the time horizon of potential property value effects. However, Mamun et al. (2024, p. 160) observed that, nationally, parcel values fell just before critical habitat was proposed and then strongly rebounded soon after the finalized critical habitat designation. Further, the availability of species-specific or area-specific information is often lacking, and it is not possible to quantify or monetize with any accuracy. Therefore, our draft economic analyses generally do not quantify the impacts of perceptional effects of critical habitat designations due to the fact- and species-specific nature of these effects; however, we routinely address and consider information provided through public comments to evaluate the validity and likelihood of the impacts.
                </P>
                <P>
                    <E T="03">Comment 16:</E>
                     Commenters suggested an apparent inconsistency between suggesting that economics are outside of 
                    <PRTPAGE P="45672"/>
                    the Service's area of expertise in the proposed rule compared to our recent proposed revisions to protective regulations for threatened species (90 FR 52592, November 21, 2025) requiring the Service to conduct economic analyses.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The Service routinely considers economic impacts of critical habitat (see 
                    <E T="03">Response to Comment 11</E>
                    ). To support this required consideration of impacts of the designation of critical habitat, we contract with economists to ensure the information we base our consideration on is robust, thorough, and meets the requirements under E.O. 12866 and OMB Circular A-4. This rulemaking does not change our overall approach. However, we recognize that others may have expertise about their specific parcels and situation and we will consider that information along with the information in our draft economic analysis. We acknowledge that the Service will consider impacts of 4(d) rules and we may consult with economists as part of that effort as well.
                </P>
                <P>
                    <E T="03">Comment 17:</E>
                     Commenters provided both support for and opposition to the provision at 50 CFR 17.90(d)(1) to assign the weight of benefits of inclusion or exclusion based on who has the expertise. Some commenters supported this provision because it allows for engagement from the public and stakeholders that will allow them to be part of the process and provide their firsthand knowledge. Some commenters supported the provision to weigh nonbiological impacts in accordance with information provided by State or local governments because these entities have special expertise that should be included in an exclusion analysis. Other commenters expressed support for allowing outside entities to provide information on economic impacts of the designation of critical habitat because they suggest information from outside entities would improve FWS's economic analyses, which currently do not provide enough granularity to allow the public to understand the impacts.
                </P>
                <P>However, some commenters stated that it is unclear how the Service will determine if someone is an expert or what constitutes firsthand knowledge. Some commenters stated that the proposed rule would give too much discretion to the Secretary in assigning weights and ultimately deciding if an area is excluded, which would contradict congressional intent to afford imperiled species “the highest of priorities.” Others were concerned that the broad discretion that the proposed rule gives to the Secretary in assigning weights to experts in nonbiological fields of knowledge runs the risk of placing disproportionate weight on the expertise of entities with private interests whose ultimate goal may not be conservation. Commenters expressed concern that this provision would inappropriately presume the validity of such information, which could include speculative economic analyses because the rule incentivizes inclusion of impacts provided by self-interested parties.</P>
                <P>
                    Commenters state that the proposed framework opens the door for industry influence, undermining the Act's mandate to base decisions solely on science. Commenters expressed concern that incorporating economic considerations and deferring to information from outside experts would inappropriately delegate expert judgment and authority to third parties who are not statutorily authorized to perform these duties, which risks prioritizing private, economic, and political interests over species protection. Multiple commenters disagreed with the language “will give weight to those benefits” suggesting this language infringes on the Service's regulatory discretion and amounts to impermissible subdelegation of statutory duties, citing 
                    <E T="03">U.S. Telecom Ass'n</E>
                     v. 
                    <E T="03">FCC,</E>
                     359 F.3d 554, 565 (D.C. Cir. 2004). One commenter noted the proposed rule forces the Service to weigh “credible” exclusion requests without sufficient means to challenge cost estimates, encouraging incomplete or even fraudulent submissions.
                </P>
                <P>Some commenters found it reasonable for experts to provide information about costs and benefits but wanted to make sure that the Service ultimately retained the discretion to reject questionable claims by critical habitat opponents, as well as to “assign the weights” that result in the balance achieved by a particular decision meeting legal requirements. Some commenters went further and stated that only the Service has the expertise to determine the weight of costs and benefits.</P>
                <P>
                    <E T="03">Response:</E>
                     Section 4(b)(2) of the Act requires consideration of the economic impact, the impact on national security, and any other relevant impact of designating any particular area as critical habitat. The regulations set forth in this rule are intended to provide greater transparency and certainty for the public and stakeholders. As stated in the 2025 proposed rule, we will give weight to benefits of inclusion or exclusion based on who has the relevant expertise. We will base critical habitat designations on the best scientific data available, evaluate the information provided from outside entities on a case-by-case basis, and give weight to those benefits of inclusion or exclusion consistent with the available information from experts, firsthand knowledge, and the best available information that the Secretary may have to rebut or confirm that information. We do not consider speculative, erroneous, intentionally misleading, or unsupported information to be the best available information and will use our best professional judgment to evaluate all information critically before incorporating it into any exclusion analysis. We will not be subdelegating our statutory duties but rather more explicitly setting out a process to consider the information from affected entities. We continue to make critical habitat decisions based on the best scientific data available and the Secretary's discretionary authority.
                </P>
                <P>
                    Rather than ceding the Secretary's discretion, this rule enhances its implementation by establishing a transparent and balanced approach in exercising that discretion. Congress gave the Secretary authority to undertake exclusion analyses, and the Secretary delegated that authority to the Director of the Service because the Service has the expertise to evaluate the impact that excluding particular areas from a critical habitat designation would have on an endangered species or threatened species. Other relevant impacts of excluding or including particular areas in a critical habitat designation may not be within the Service's expertise. As some of the commenters pointed out, it is reasonable for the Secretary to seek input from experts regarding those other relevant impacts that are outside the scope of the Service's expertise. This rule strikes that balance by providing for the Service to seek input from experts and give weight to impacts accordingly, while also making clear that the Service ultimately retains the discretion to reject or adjust that input to the extent it is rebutted by the best information available to the Service, including information that the Service develops to consider economic or relevant impacts such as the IEM (see 
                    <E T="03">Comment 11</E>
                    ). By retaining that discretion for the Service, the rule avoids putting disproportionate weight on the expertise of entities whose ultimate goal may not be conservation.
                </P>
                <P>
                    <E T="03">Comment 18:</E>
                     Several commenters requested a clear definition for “national security,” with predetermined activities to avoid the use of open-ended terms. Commenters referenced national security as both a factor to be considered for exclusion as described in the rule and a reason for inclusion given that ecological degradation can pose a 
                    <PRTPAGE P="45673"/>
                    security risk (
                    <E T="03">e.g.,</E>
                     food and water security, disaster resilience).
                </P>
                <P>
                    <E T="03">Response:</E>
                     We will rely on the expertise of the Department of War, Department of Homeland Security, or affiliated agencies to make a determination as to what constitutes an impact to national or homeland security. The Service does not have the expertise to determine all activities or projects that may have national security implications; therefore, we decline to produce a list or further define “national security” in these regulations. We will continue to rely on the expert judgment of the agencies responsible for national security and homeland security and any reasonably detailed justification of the potential impacts that they provide regarding a designation of critical habitat to inform our discretionary exclusion analysis.
                </P>
                <P>
                    <E T="03">Comment 19:</E>
                     Commenters both opposed and supported the provision clarifying when the Service will consider excluding Federal lands. Those that expressed opposition to the proposed provision cited sections 2(c) and 7 of the Act, which generally state that Federal agencies shall seek to conserve listed species and use their authorities to further the purposes of the Act. Furthermore, commenters stated that, because section 7 of the Act requires consultation by Federal agencies to ensure their actions are not likely to jeopardize listed species or destroy or adversely modify their critical habitat, Federal lands are important for species recovery. Other commenters noted that the potential increase in exclusions of Federal lands could be a negative signal to private landowners regarding the commitment of Federal land managers to species recovery and section 7 consultation. Commenters also noted that, combined with national-security exclusions and exemptions, additional exclusion of Federal lands could skew critical habitat designations to, and pose an economic disadvantage to, State and private lands, especially in Western States. Commenters further stated that administrative or transactional costs tend to be minor and should not be a basis for exclusion.
                </P>
                <P>
                    Other commenters expressed support for the approach to Federal lands in the proposed rule and asked that additional provisions be added to the final rule, such as specifically including consideration of more than section 7 transactional costs (for example, considering impacts on the private property of a lessee or permittee). Commenters asked for additional specificity in the types of Federal lands and activities to be considered for exclusion; whether federally withdrawn lands (
                    <E T="03">e.g.,</E>
                     National Forest System lands withdrawn from public entry and reserved for Reclamation Project purposes (“withdrawn lands”)) on which non-Federal entities are conducting activities could be considered; and whether exclusion could apply only within a project footprint or would extend to adjacent areas on Federal land where there may be an effect from a project.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The Act is clear in section 2(c)(1) and section 7(a)(1) that Federal agencies shall use their authorities to further the purposes of the Act and carry out programs for the conservation of endangered species and threatened species, and in section 7(a)(2) that Federal agencies must ensure their actions are not likely to jeopardize the continued existence of listed species or result in destruction or adverse modification of their critical habitat. However, the Ninth Circuit held that the “ESA's declaration of purposes and policy” [Section 2] is a “non-operative statement of policy that `does not create an enforceable mandate'” (
                    <E T="03">Bear Valley Mut. Water Co.</E>
                     v. 
                    <E T="03">Jewell,</E>
                     790 F.3d 977, 987 (9th Cir. 2015), hereafter “
                    <E T="03">Bear Valley”</E>
                    ). Regardless, the final regulation does not change any of the obligations of Federal agencies under the Act. Section 4(b)(2) of the Act does not provide for a different standard for exclusions on Federal lands relative to other lands.
                </P>
                <P>While the standards for evaluating Federal and non-Federal lands are the same, we will consider the extent to which consultation may produce an outcome that has probable economic or other impacts, such as by requiring project modifications and additional conservation measures by the Federal agency or other affected parties, on a case-by-case basis. Additionally, we expect to evaluate the types of activities that are being permitted or the types of leases and activities being conducted on Federal land, any economic benefits associated with those leases and activities, and any potential impacts that designating the lands as critical habitat could have on those economic benefits, as well as the conservation value of the areas that qualify as critical habitat, including whether the areas are occupied or unoccupied. Regardless of inclusion or exclusion of Federal lands from a designation of critical habitat, we recognize that Federal lands may provide important areas for species recovery efforts.</P>
                <P>In any exclusion analysis for Federal lands, we will consider not only the transactional costs associated with section 7 consultations, but also any potential costs to affected parties (including non-Federal entities) such as changes to anticipated permits, licenses, leases, or contracts that would stem from any project modifications that may be required to avoid destruction or adverse modification of critical habitat. We will now consider impacts on Federal lands the same as non-Federal lands by considering the impacts of the designation on applicants, permittees, or lessees. Consideration of those incremental costs will be done on a case-by-case basis. We decline to include additional details about what specific areas may be considered for exclusion.</P>
                <P>
                    <E T="03">Comment 20:</E>
                     One commenter said the Secretary's evaluations of proposed exclusions of critical habitat on Federal lands must be conducted under the lens of the mandated purposes Multiple Use and Sustained Yield Act of 1960 (MUSYA; 16 U.S.C. 528-531). The commenter stated this act established co-equal purposes for the administration and management of federal lands: outdoor recreation, range, timber, watershed, and wildlife and fish conservation. These purposes are to be achieved through “harmonious and coordinated management of the various resources, each with the other without impairment of the productivity of the land.” The prevailing interpretation of this act is that each of the designated purposes have equal standing on federal lands.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The MUSYA is not applicable to this rulemaking. The MUSYA directs the Secretary of Agriculture on administering national forests (
                    <E T="03">U.S.</E>
                     v. 
                    <E T="03">New Mexico,</E>
                     438 U.S. 696, 714 (1978)), and it does not apply to the Department of Interior. Furthermore, the language the commenter cites is from the portion of the MUSYA that is the declaration of congressional policy and as stated above, does not have any legal effect. See, for example, 
                    <E T="03">Bear Valley,</E>
                     holding that a declaration of purposes and policy is a non-operative statement of policy that does not create an enforceable mandate.
                </P>
                <P>
                    <E T="03">Comment 21:</E>
                     Some commenters supported the consideration of section 10(a) permitted plans and agreements such as habitat conservation plans, safe harbor agreements, candidate conservation agreements with assurances, or conservation benefit agreements in our exclusion process. Commenters appreciated that we stated that the Service places great value on the partnerships that are developed during the preparation and implementation of conservation plans in the proposed rule. Others requested the 
                    <PRTPAGE P="45674"/>
                    Service always exclude all areas covered by permitted plans from critical habitat designations and requested additional regulatory language stating this. Commenters requested that the Service revise the regulation to simplify the requirements for areas covered by permitted plans to be excluded from critical habitat to bolster the confidence of landowners, as well as incentivize participation in permitted plans.
                </P>
                <P>However, several commenters shared concerns over the changed circumstance provision which allows changing conservation measures over time, the finite nature of the agreements, the question of whether the lands are in a currently acceptable state for the listed entity, the effectiveness of conservation plans, the lack of protective measures compared to a designation, and an overall concern regarding the durability of agreements compared to a critical habitat designation.</P>
                <P>
                    <E T="03">Response:</E>
                     As stated in the 2025 proposed rule in paragraph (d)(3) and associated preamble text, we place great value on the partnerships that are developed during the preparation and implementation of plans and agreements that have been permitted under section 10(a) of the Act. We anticipate consistently excluding areas covered by plans, agreements, or partnerships, such as those listed in the 2016 policy, as long as the conditions in paragraphs (d)(3)(i)-(iii) are met. Because section 10(a) permits authorize take of covered species that would otherwise be prohibited, permittees are incentivized to continue the implementation of the measures contained in the conservation plan and required by the associated permit following the exclusion of the covered area. Therefore, the benefits of inclusion are generally less than the benefits of exclusion. This is not the same fact pattern for draft plans or agreements, and we thus would generally give little weight to these draft agreements or unrealized or uncertain commitments of future conservation actions in a discretionary section 4(b)(2) exclusion analysis. The Service will always consider the plans or agreements that have been permitted under section 10(a) of the Act on a case-by-case basis to determine whether the benefits of exclusion outweigh the benefits of inclusion. We have been applying these concepts following the finalization of the 2016 policy, and our experience is that they work well, do not impose unnecessary burden on the Service, and provide the clarity needed for landowners and partners to meet the exclusion requirements.
                </P>
                <P>
                    <E T="03">Comment 22:</E>
                     A commenter suggests that excluding lands operating under a permitted agreement conflates the regulatory standard for “take” with the relevant standard for section 7 consultation relating to critical habitat (
                    <E T="03">i.e.,</E>
                     whether an action is likely to “destroy or adversely modify” designated critical habitat) and cited to 
                    <E T="03">Karuk Tribe of Cal.</E>
                     v. 
                    <E T="03">U.S. Forest Serv.,</E>
                     681 F.3d 1006, 1028 (9th Cir. 2012) (hereafter “
                    <E T="03">Karuk”</E>
                    ), which states “[w]hether mining activities effectuate a `taking' under Section 9 of the ESA is a distinct inquiry from whether they `may affect' a species or its critical habitat under Section 7.” The commenter suggests that equating these two distinct standards ignores the ESA's plain language and the many independent conservation benefits that accrue from critical habitat designation.
                </P>
                <P>
                    The commenter also suggests the proposal to exclude areas based on permitted plans or agreements is inconsistent with the case law, and while such plans and agreements are important for species conservation, they are not a substitute for critical habitat designation. They cited to 
                    <E T="03">NRDC,</E>
                     in which the Ninth Circuit rejected FWS's argument that it did not need to designate critical habitat for the coastal California gnatcatcher because such lands were already covered by a Natural Community Conservation Plan (NCCP). The Ninth Circuit held that “the NCCP alternative cannot be viewed as a functional substitute for critical habitat designation” because such designation “triggers mandatory consultation requirements for [F]ederal agency actions involving critical habitat” (Id. at 1127). “The NCCP alternative, in contrast, is a purely voluntary program that applies only to non-[F]ederal land-use activities” (Id). Further, the commenter cited to 
                    <E T="03">Bear Valley,</E>
                     in which the Ninth Circuit held that FWS properly designated critical habitat that was also included in a habitat conservation plan (HCP). The commenter suggests the Service has now inexplicably reversed its position, pointing to language in the 2025 proposed rule that “the unhindered, continued ability to maintain existing partnerships, as well as the opportunity to seek new partnerships with potential plan participants,” generally outweighs the benefits of designating areas subject to conservation plans as critical habitat (90 FR 52592 at 52596, November 21, 2025).
                </P>
                <P>The commenter also states that the Service has failed to justify the proposed change from the 2016 policy about permitted plans that adds the phrase “or information provided by proponents of an exclusion.” They suggest this language provides an opportunity for proponents of an exclusion—but not proponents of an inclusion—to provide relevant information to inform critical habitat designations.</P>
                <P>
                    <E T="03">Response:</E>
                     As we explained above, we anticipate consistently excluding areas covered by plans, agreements, or partnerships as long as the conditions in paragraphs (d)(3)(i)-(iii) are met. None of the court opinions cited by the commenter specifically address an application of these conditions, nor provide legal justification against this rule.
                </P>
                <P>
                    In reference to the commenter citing 
                    <E T="03">Karuk,</E>
                     we disagree with the commenter that excluding lands operating under a permitted agreement conflates the regulatory standards between section 7 and 9. While those are two different standards in two different sections of the ESA, section 4(b)(2) provides an independent standard for “The Secretary [to] exclude any area from critical habitat if he determines that the benefits of such exclusion outweigh the benefits of specifying such area as part of the critical habitat.” Also as discussed below, it is the Service's long-standing policy that the benefits of exclusion due to conservation plans or agreements, including the commenter's permitted agreement, that meet certain criteria (such as the conditions in paragraphs (d)(3)(i)-(iii)) generally outweigh the benefits of designating areas subject to conservation plans or agreements as critical habitat.
                </P>
                <P>
                    As for the 1997 
                    <E T="03">NRDC</E>
                     Ninth Circuit opinion the commenter cites, that opinion was based on a challenge to the Service's “not prudent” critical habitat determination made under ESA section 4(a)(3). The Ninth Circuit language on the NCCP that the commenter provides was an argument to the determination that a critical habitat designation was “not prudent.” Thus, the Ninth Circuit did not explicitly opine on the Secretary's discretion under 4(b)(2) to exclude areas designated as critical habitat, and the Ninth Circuit's opinion is not relevant on the matter of critical habitat exclusion.
                </P>
                <P>
                    As for the 2015 
                    <E T="03">Bear Valley</E>
                     Ninth Circuit opinion the commenter cites, this rule is not a reversal on the Service's position on whether partnership and conservation benefits generally outweigh the benefits of designating areas subject to conservation plans or agreements as critical habitat. In 
                    <E T="03">Bear Valley,</E>
                     the Service made a specific determination, specific to that agreement (
                    <E T="03">i.e.,</E>
                     Western Riverside County Multiple Species 
                    <PRTPAGE P="45675"/>
                    HCP). That determination did not preclude the Service from future determinations related to critical habitat exclusions, such as this rule. In fact, it has been the Service's long-standing policy that the benefits of exclusion due to conservation plans or agreements that meet certain criteria (such as the conditions in paragraphs (d)(3)(i)-(iii)) generally outweigh the benefits of designating areas subject to conservation plans or agreements as critical habitat. A lower court, in an earlier decision, upheld the Service's exclusion of a regional HCP and Tribal lands from critical habitat based on the preservation of partnerships (
                    <E T="03">Cntr. for Biological Diversity</E>
                     v. 
                    <E T="03">FWS,</E>
                     2011 WL 13356055 (S.D. Cal. Sept. 26, 2011)).
                </P>
                <P>
                    <E T="03">Comment 23:</E>
                     Commenters both opposed and supported our consideration of non-permitted plans for possible exclusions. Commenters suggested that considering draft plans not yet proven effective creates perverse incentives for landowners to develop minimal conservation plans to avoid designation, knowing the Service will likely grant exclusions before implementation or effectiveness can be evaluated. Commenters also stated that the circumstances in which the Service proposes to exclude areas covered by conservation agreements fail to account for the actual benefit of those plans to listed species.
                </P>
                <P>
                    Commenters supporting the consideration of non-permitted plans recognized the incentives this creates for voluntary conservation and stated the regulation provides greater transparency and predictability for the public and stakeholders as to what elements might be needed for a conservation plan or agreement to serve as a basis for an exclusion. Of those that appreciated its inclusion, some were concerned that the Service would provide too little weight to draft voluntary agreements and emphasized that analysis of each agreement should be based on the past successes, on the strength of existing relationships, and on the stage of the process (
                    <E T="03">e.g.,</E>
                     whether the draft is an early version or a late version). Alternatively, other commenters agreed that a party must demonstrate that the voluntary conservation plan is being implemented consistent with its terms. Some commenters thought the factors set out in paragraphs (d)(4)(i)-(viii) are too onerous for the Service to consider in evaluating whether to exclude areas covered by non-permitted plans. For example, commenters suggested, the requirement to demonstrate “success” of the plan is overly broad and would place an unreasonable threshold and that instead of attempting to measure “success,” the Service should instead consider whether the party is meeting or exceeding the metrics or goals identified within the applicable plan. Commenters stated that the regulations should provide clear and simple procedures to meet the exclusion threshold. Commenters suggest the Service should take the necessary steps to promote conservation plans and bring more attention to them, not disincentivize their use. Additionally, some commenters stated that the presumption of exclusion should extend to agreements not permitted under section 10(a) of the Act and that we should include regulatory text referring to automatic exclusions of such areas so long as: (1) the agreement or plan is being implemented in accordance with its terms; (2) the agreement or plan contains measures that provide for the protection or enhancement of habitat for the subject species; and (3) confirmation that exclusion of the covered area will not result in the extinction of the species concerned. At least one commenter urged the Service to clarify that the existence of an active or pending voluntary agreement constitutes credible information triggering a 4(b)(2) analysis.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Adding the provision from our 2016 policy to consider non-permitted plans for possible exclusions to our regulations is intended to incentivize and recognize voluntary conservation efforts that provide conservation benefits to listed species and other at-risk species. When we consider plans, agreements, or partnerships that have not been authorized by a permit under section 10(a) of the Act, we evaluate a variety of factors. Paragraphs (d)(4)(i)-(viii) of the rule provide a non-exhaustive list of these factors. We use these factors to determine how the benefits of exclusion and the benefits of inclusion of a particular area are affected by the existence of private or other non-Federal conservation plans or agreements and their attendant partnerships when we undertake a discretionary section 4(b)(2) exclusion analysis. We have been applying these concepts following the finalization of the 2016 policy, and our experience is that they work well. Further, as described in the preamble to the 2025 proposed rule, the Service is not required to be part of a non-permitted plan or agreement to consider the area for exclusion based on that plan. Evaluation of the success of a non-permitted plan or agreement directly relates to the benefits of exclusion of specific areas. We value the collaboration and conservation value provided by voluntary private or non-Federal conservation plans or agreements. It is in that context that we included in paragraphs (d)(4)(i)-(viii) descriptions of how we will consider these plans in a discretionary section 4(b)(2) exclusion analysis. Because every plan is unique, as are the specific needs of every species, it is difficult to offer an automatic exclusion and/or a single comprehensive analysis to cover all conservation agreements. For this reason, the Service has set out general conditions in the final regulation and conducts case-by-case analyses to determine whether to exclude areas covered by non-permitted, as well as permitted, plans.
                </P>
                <HD SOURCE="HD2">Approach To Excluding Areas (§ 17.90(e) Discretion)</HD>
                <P>
                    <E T="03">Comment 24:</E>
                     We received comments that both supported and opposed the inclusion of the phrase “shall exclude” in § 17.90(e). Specifically, commenters supported the conclusion that the Service will always exclude the areas where the benefits of exclusion outweigh the benefits of inclusion, as long as exclusion will not result in the extinction of the listed species. Commenters stated that the proposed provision would create a clear standard, encourage consistent and transparent application of section 4(b)(2) of the Act, and support reasoned decision making (
                    <E T="03">Michigan</E>
                     v. 
                    <E T="03">EPA,</E>
                     576 U.S. 743 (2015)). In addition, in the view of some commenters, once the exclusion analysis is completed, if the benefits of exclusion outweigh the benefits of inclusion, there are no further considerations. If we did not exclude that area, our decision would be arbitrary and capricious, lack a rational basis, and run counter to the evidence evaluated by the Service.
                </P>
                <P>
                    Alternatively, other commenters opposed using the words “shall exclude” in § 17.90(e) because those words are more restrictive and would require the Service to automatically exclude an area from critical habitat if we determine that the benefits of exclusion outweigh the benefits of inclusion, regardless of the circumstances. Commenters expressed concern that use of the word “shall” constituted an arbitrary and capricious change in agency practice without justification, citing the language in the 2016 policy (
                    <E T="03">i.e.,</E>
                     that “the decision to exclude is always discretionary,” and, “[u]nder no circumstances is exclusion required under the second sentence of section 4(b)(2)”) (81 FR 7226 at 7229, February 11, 2016). Commenters expressed concern that this approach 
                    <PRTPAGE P="45676"/>
                    would result in more exclusions and contradict the purpose of the Act and Congress's intent that the Secretary retain discretion in determining whether or not to exclude particular areas from critical habitat. Commenters also expressed concern that requiring the Secretary to exclude areas whenever the benefits of exclusion outweigh the benefits of inclusion would allow for detrimental impacts to a listed species' habitat as long as the species does not go completely extinct.
                </P>
                <P>
                    <E T="03">Response:</E>
                     As described in the 2025 proposed rule, and in the 
                    <E T="02">Summary</E>
                     above, this final rule largely adopts the 2016 policy with further clarifications in the process that FWS will use when undertaking exclusion analyses. Using the phrase “shall exclude” in this rulemaking is not inconsistent with the statements that the commenters cite from the 2016 policy. The commenters' excerpts from the 2016 policy make clear that decisions to exclude areas from critical habitat are discretionary under the structure and language of the statute. The regulation does not change or contravene that fact. Rather, this rulemaking is an exercise of the discretion referenced in those excerpts. The Secretary is choosing to exercise his discretion in this way to provide for transparency and certainty. Under the Act, the Secretary could have elected to undertake exclusion analyses on a case-by-case basis and exclude areas every time the benefits of exclusion outweigh the benefits of inclusion. However, the approach finalized here provides greater transparency and certainty because it explicitly states how the Secretary will proceed when the benefits of exclusion outweigh the benefits of inclusion. Our intent with applying the Secretary's discretion in this way is to incentivize conservation efforts. As we explained in the proposed rule, section 4(b)(2) of the Act gives the Secretary the discretion to exclude areas from critical habitat designations when certain criteria have been met. Using the phrase “shall exclude” in the regulation indicates how the Secretary is choosing to exercise his discretion, and making this choice is neither unlawful nor contrary to the purposes of the Act. Even with the words “shall exclude” in the regulation, under the statute the Secretary can only exclude areas if he determines that the benefits of exclusion outweigh the benefits of inclusion after considering the conservation value or benefit of inclusion of the area weighed against the impacts of the designation or benefits of exclusion, and the Secretary determines that exclusion will not lead to extinction of the species.
                </P>
                <P>
                    <E T="03">Comment 25:</E>
                     Commenters stated that using the standard “will result in extinction” sets too low of a bar (
                    <E T="03">e.g.,</E>
                     may allow significant habitat loss as long as species do not reach extinction) and may introduce legal vulnerability by ignoring the recovery mandate of the Act. Commenters also posed questions about whether extinction risk is considered immediate or over time. Commenters suggested alternatives such as “does not preclude recovery” or “essential to conservation.”
                </P>
                <P>
                    <E T="03">Response:</E>
                     The standard of “will result in the extinction” comes directly from section 4(b)(2) of the Act. We decline to impose an alternative standard in regulation. Further, conservation is explicitly considered when determining whether or not an area should be excluded. The Secretary must determine that the benefits of exclusion outweigh the benefits of designating that particular area as critical habitat. The benefits of designating critical habitat include the conservation value or benefit that the particular area provides to the conservation of the species.
                </P>
                <HD SOURCE="HD2">Required Determinations and Other Legal Requirements</HD>
                <P>
                    <E T="03">Comment 26:</E>
                     Multiple commenters point out that E.O. 14154, and the related S.O. 3418, do not require or support the proposed rule. For example, commenters state that the Service does not explain how the proposed changes would reduce burdens on development of energy resources. At least one commenter suggested that the proposed rule should be reviewed by the Secretary and Solicitor of the Interior using the classes of regulations criteria in section 2(a) of E.O. 14219, “Ensuring Lawful Governance and Implementing the President's `Department of Government Efficiency' Deregulatory Initiative.”
                </P>
                <P>
                    <E T="03">Response:</E>
                     As explained above, while E.O. 14154 initiated our review, our goal in revising these regulations was to determine how best to designate critical habitat for endangered species and threatened species under section 4(b)(2) of the Act while also considering our experience administering the Act and policy preferences. We considered section 2(a) of E.O. 14219 and did not find that these regulation revisions met any of those criteria. These regulations primarily adopt and clarify the provisions in the 2016 policy and regulations at 50 CFR 424.19, which have been in place for over a decade. These regulations reflect the Service's experience and existing case law and intend to provide greater transparency and certainty for the public and stakeholders.
                </P>
                <P>
                    <E T="03">Comment 27:</E>
                     Several commenters stated that we did not comply with APA requirements. For example, commenters suggested that we did not provide a transparent, reasoned explanation for the proposed departure from our 2016 policy or justification supporting the 2022 recission of the 2020 rule or a complete and transparent analysis. At least one commenter stated that, at a minimum, the Service has not shown that there are good reasons for the new policy (see 
                    <E T="03">FCC</E>
                     v. 
                    <E T="03">Fox Television Stations, Inc.,</E>
                     556 U.S. 502, 515 (2009); hereafter “
                    <E T="03">FCC</E>
                     v. 
                    <E T="03">Fox”</E>
                    ). One commenter expressed concern about the Service's reliance on the APA's “good cause” exception (suggesting that we promulgated the rule without notice and comment and instead provided an immediate effective date for the rule). A commenter stated the APA prohibits agencies from segmenting actions to obscure their true impact (
                    <E T="03">Delaware Riverkeeper Network</E>
                     v. 
                    <E T="03">FERC,</E>
                     753 F.3d 1304, 1307 (D.C. Cir. 2014); hereafter “
                    <E T="03">Delaware Riverkeeper Network”</E>
                    ) and if multiple rules are released on the same day and are functionally dependent on one another, we must explain their interrelationship.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We do not agree with the assertion that we did not provide enough justification or logical rationale for the rule in compliance with the APA. We published our proposal, broadly explained our proposed revisions, explained our rationale for changes
                    <E T="03">,</E>
                     and explicitly asked for public comment. We have now reviewed the public comments and in this final rule have provided responses to relevant, significant comments. We have provided the public with our rationale and a meaningful opportunity to comment on all aspects of the proposed rule. Thus, the process that we used to promulgate this rule complied with the applicable requirements of the APA. The process for revising regulations is governed by the APA as interpreted by relevant case law, with which the Service has complied fully.
                </P>
                <P>
                    Contrary to a commenter's assertion, we did not rely upon the APA's “good cause” exception and did not publish a rule with an immediate effective date. We published notice of the proposed rulemaking in the 
                    <E T="04">Federal Register</E>
                     (90 FR 52592, November 21, 2025), provided an opportunity for public comment, considered the relevant matter presented in those comments, and we have provided a rational explanation for our action. Regarding 
                    <E T="03">Delaware Riverkeeper Network,</E>
                     that opinion was specific to the National Environmental Policy Act and segmented environmental review.
                    <PRTPAGE P="45677"/>
                </P>
                <P>
                    In our 2020 rule (85 FR 82376 at 82376, December 18, 2020), we explained that we were ending our reliance on the 2016 policy and 50 CFR 424.19 to provide clarity to the Service and the public in light of agency experience and current practices, and to respond to the Supreme Court's decision in 
                    <E T="03">Weyerhaeuser.</E>
                     In our 2022 rescission (87 FR 43433, July 21, 2022), we rescinded the 2020 rule because we determined that the 2020 rule was problematic because it unduly constrained the Service's discretion in administering the Act, potentially limiting or undermining the Service's role as the expert agency and its ability to further the conservation of endangered and threatened species through designation of their critical habitats. We now find—as explained further in our preamble to the November 21, 2025, proposed rule (90 FR 52592 at 52594)—that reinstating the regulations at 50 CFR 17.90 is the preferable policy choice. This rule reflects the Service's experience and existing case law. The intended effect of these regulations is to provide greater transparency and certainty for the public and stakeholders. This is sufficient explanation under the Supreme Court's decision in 
                    <E T="03">FCC</E>
                     v. 
                    <E T="03">Fox</E>
                     (556 U.S. at 515), which concludes “it suffices that the new policy is permissible under the statute, that there are good reasons for it, and that the agency believes it to be better, which the conscious change of course adequately indicates.”
                </P>
                <P>
                    <E T="03">Comment 28:</E>
                     Commenters expressed concern that the regulatory changes outlined in the proposed rule are not grounded in the best available science, allow undue influence from the regulated community, weaken ESA mandates and protections, and are contrary to the stated conservation purpose of the Act.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We do not share the commenters' concerns. We will continue to base critical habitat designations on the best scientific data available, evaluate the information provided from outside entities on a case-by-case basis, and give weight of the benefits of inclusion or exclusion consistent with the available information from experts, firsthand knowledge, and the best available information that the Secretary may have to rebut that information. We do not consider speculative or unsupported information to be credible information and will use our best professional judgment to evaluate all information critically before incorporating it into any exclusion analysis.
                </P>
                <P>
                    <E T="03">Comment 29:</E>
                     One commenter stated the proposed rule fails to fulfill the Alaska Native Claims Settlement Act (43 U.S.C. Chapter 33).
                </P>
                <P>
                    <E T="03">Response:</E>
                     Our obligation to have a government-to-government relationship with federally recognized Tribes is paramount and is addressed by S.O.s 3206 and 3225. While S.O. 3225 discusses Alaska Natives and other Native organizations, its purpose is to protect subsistence rights and ways of life, and states that the Departments of Commerce and the Interior will seek to enter into cooperative agreements for the conservation of specific species, such as marine mammals and migratory birds, and the co-management of subsistence uses with these organizations.
                </P>
                <P>In the Consolidated Appropriations Act of 2004 (Pub. L. 108-199, Div. H, sec. 161), Congress required that the Director of the Office of Management and Budget (and, subsequently, all Federal agencies) consult with Alaska Native Corporations (ANCs) on the same basis as Indian Tribes under E.O. 13175. Consistent with this obligation, the Service will consult on Federal decisions that have a substantial, direct effect on an ANC. This obligation to consult does not extend beyond the E.O. 13175 context and does not apply here. We will continue to collaborate with federally recognized Tribes and ANCs on a government-to-government basis on issues related to federally listed species and their habitats and will work with them as we administer the provisions of the ESA.</P>
                <P>
                    <E T="03">Comment 30:</E>
                     Commenters suggested additional analyses are required for our required determinations (for example, Regulatory Flexibility Act, Federalism, Paperwork Reduction Act, E.O. 12866, and Statement of Energy Effects). Several commenters stated that we need to complete intra-Service section 7 consultation on the rulemaking.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Regarding all required determinations for this rulemaking, the primary change that this final rule makes is to put a regulatory framework in place for future application. In the future, for each critical habitat designation or revision, we will determine whether any areas should be excluded from designation. These changes provide transparency and clarity, and there are no identifiable, quantifiable effects from this rule. We further explain our rationale and compliance for each of the identified Required Determinations in their respective sections below.
                </P>
                <P>
                    <E T="03">Comment 31:</E>
                     Multiple commenters remarked on whether aspects of this rule are legal under the Act, whether they are the best interpretation of the Act, and whether they are consistent with congressional intent. Some commenters viewed aspects of the regulations as lawful and consistent with congressional intent. These commenters pointed out that the 2020 rule, and therefore the 2025 proposed rule, reversed the 2016 policy's impermissible de facto moratorium on section 4(b)(2) analyses whenever a potential critical habitat area was located on Federal land. They suggest this moratorium, which was reinstated by the 2022 rule, was squarely at odds with section 4(b)(2)'s requirement that the Service consider the economic and other impacts of designating critical habitat irrespective of where areas otherwise qualifying as critical habitat may be located. They suggest that Congress drafted section 4(b)(2) with the express intent that it would “cause the Secretary to be more judicious in specifying such a critical habitat, and to avoid conflicts between [species] and Federal activities at an early stage” (124 Cong. Rec. 38,128 (1978); H.R. Rep. No. 95-1625, at 16).
                </P>
                <P>
                    The same commenters found that for one aspect of the proposed rulemaking, neither the 2016 policy reflected in the 2022 rescission rule, nor the 2020 rule, reflected in the 2025 proposed rule, reflect the “single, best meaning” of the Act. They suggest that weighing the benefits of excluding an area against the benefits of including an area in a critical habitat designation is not “optional” or otherwise a matter of discretion and misreads the Supreme Court's decisions in 
                    <E T="03">Weyerhaeuser</E>
                     and 
                    <E T="03">Bennett</E>
                     v. 
                    <E T="03">Spear,</E>
                     520 U.S. 154 (1997) (hereafter “
                    <E T="03">Bennett”</E>
                    ), and is at odds with Congress's intent in enacting section 4(b)(2).
                </P>
                <P>
                    Conversely, other commenters suggested that the regulations are unlawful and inconsistent with the best reading of the Act as required by 
                    <E T="03">Loper Bright Enterprises</E>
                     v. 
                    <E T="03">Raimondo,</E>
                     603 U.S. 369 (2024) (hereafter, “
                    <E T="03">Loper Bright”).</E>
                     For example, commenters state the proposed rule unlawfully conflated the initial, mandatory economic impact analysis in section 4(b)(2) with the subsequent, discretionary critical habitat exclusion analysis, and appears to unlawfully presume that such an exclusion analysis will occur in every case counter to 
                    <E T="03">Weyerhaeuser</E>
                     and 
                    <E T="03">Bldg. Industry Ass'n of the Bay Area</E>
                     v. 
                    <E T="03">U.S. Dep't of Com.,</E>
                     792 F.3d 1027 (9th Cir. 2015) (hereafter “
                    <E T="03">Bldg. Industry Ass'n”</E>
                    ).
                </P>
                <P>
                    Commenters also stated that we misconstrued the Supreme Court's ruling in 
                    <E T="03">Loper Bright</E>
                     because there was nothing in the court's decision that compels or even supports the decision to revise the implementing regulations. Further, these commenters stated that 
                    <PRTPAGE P="45678"/>
                    referring to the court's decision does not sufficiently justify the Service's change in position or provide a rational basis to rely on for the revisions to the regulations because it does not change how agencies interpret statutes or promulgate regulations. These commenters stated 
                    <E T="03">Loper Bright</E>
                     requires courts, when reviewing an agency action, to determine the “best reading” of a statute rather than defer to an agency's interpretation of ambiguous statutory language (603 U.S. at 400).
                </P>
                <P>
                    <E T="03">Response:</E>
                     These regulation revisions articulate when and how we determine whether the benefits of excluding an area outweigh the benefits of designating the area as critical habitat (exclusion analysis). As discussed above in the 
                    <E T="02">SUMMARY</E>
                    , these regulations primarily adopt and clarify the provisions in the 2016 policy and regulations at 50 CFR 424.19 with a new information standard for when we enter into a discretionary weighing analysis, a clarification of how considerations for exclusions will be conducted for Federal lands, and an approach to giving weight to the benefits of inclusion or exclusion of any particular areas designated as critical habitat. We also removed a statement from the 2016 policy that “although the Services will explain their rationale for not excluding a particular area, that decision is committed to agency discretion.” Additionally, as discussed in our 2020 proposed rule (85 FR 55398, September 8, 2020) we decided to revisit certain language in the preamble of the 2016 policy, as well as certain statements in the preamble to the 2013 rule that revised the regulations on the timing of our economic analyses at 50 CFR 424.19, to provide clarity to FWS staff and the public in light of the Supreme Court's decision in 
                    <E T="03">Weyerhaeuser.</E>
                     At the time we developed the 2013 rule and 2016 policy, the Services were guided by a line of cases in which courts had held that a decision by the Services not to exclude a particular area under section 4(b)(2) of the Act was committed to agency discretion by law and therefore not subject to judicial review.
                </P>
                <P>
                    In addition, regarding 
                    <E T="03">Weyerhaeuser,</E>
                     although the Supreme Court's opinion did not require promulgation of regulations on the procedure for exclusion analyses under section 4(b)(2) of the Act, it did establish that decisions not to exclude a particular area of critical habitat are judicially reviewable. See 
                    <E T="03">Weyerhaeuser,</E>
                     586 U.S. at 25, noting that the challenge to the Service's decision not to exclude a particular area was a “familiar one in administrative law that the agency did not appropriately consider all of the relevant factors that the statute sets forth to guide the agency in the exercise of its discretion.” 
                    <E T="03">Weyerhaeuser</E>
                     cited the Court's earlier decision 
                    <E T="03">Bennett</E>
                     to justify its decision (and though 
                    <E T="03">Weyerhaeuser</E>
                     does not cite the Ninth Circuit's 2015 
                    <E T="03">Bldg. Industry Ass'n</E>
                     opinion, 
                    <E T="03">Weyerhaeuser's</E>
                     holding overturns the Ninth Circuit's holding that critical habitat exclusions are not judicially reviewable). In light of the Supreme Court's holding that decisions not to exclude may be reviewed by courts for abuse of discretion under section 706(2) of the APA, the Service is of the view that the Court's decision underscores the importance of being deliberate and transparent about how the Service goes about making decisions about whether to exclude areas from designations of critical habitat.
                </P>
                <P>In response to the conflicting comments about whether section 4(b)(2) of the Act requires the Service to conduct weighing analyses or to exclude an area from designation as critical habitat when the benefits of exclusion outweigh the benefits of inclusion; regardless of these comments, crafting these regulations that provide greater transparency and certainty for the public and stakeholders is the most appropriate way for the Service to administer section 4(b)(2) of the Act and our preferred policy approach.</P>
                <P>
                    <E T="03">Comment 32:</E>
                     Commenters stated that the Service failed to comply with the National Environmental Policy Act (NEPA; 42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ) because we merely solicited public comment on potential impacts of the regulatory revisions rather than drafting an environmental impact statement for public input. According to the commenters, this shifts the burden to the commenters to gather and review technical environmental and economic information during the 30-day comment period, prejudicing their ability to comment and protect their rights and interests. Multiple commenters asserted that a NEPA analysis was required because the proposed regulatory revisions constitute a “major Federal action” with significant environmental impacts. Some commenters asserted that the Service needs to prepare an environmental assessment or environmental impact statement pursuant to NEPA for these revisions to the regulations prior to adoption of the proposed changes, and that this rulemaking action should not be categorically excluded. Specifically, they suggest that we need to take a hard look at the foreseeable impacts of the regulatory changes, along with a reasonable range of alternatives. Some commenters stated that they do not believe that the proposed regulation changes are merely administrative or procedural actions, nor would result in environmental effects that are “too broad or speculative” for analysis. Some commenters noted “extraordinary circumstances” preclude use of a categorical exclusion; for example, those having significant impacts on species listed, or proposed to be listed under the Actor having significant impacts on designated critical habitat for these species (43 CFR 46.215(g)).
                </P>
                <P>Commenters stated that NEPA did not permit the Services to consider each of the ESA rule changes proposed on November 21, 2025, independently and the Services were instead required to consider these four regulatory actions, along with the “harm” rule, collectively to avoid improperly segmenting their actions and obscuring the full environmental consequences of deregulation.</P>
                <P>
                    <E T="03">Response:</E>
                     NEPA establishes procedures for agencies to follow to determine the level of NEPA review (42 U.S.C. 4336). The Service elected to invite the public to provide comments on whether the proposed regulations may have a significant impact on the human environment, consistent with our past practice in promulgating the 2020 rule. This approach did not place a burden on commenters to develop technical analyses, as one commenter suggested, nor deprive or limit their ability to participate in the comment period effectively. There is no requirement under NEPA to make any draft environmental document or categorical exclusion documentation available to the public for comment. Exceeding the statutory minimum requirements here and allowing public input on our NEPA compliance does not violate NEPA.
                </P>
                <P>
                    The Service also voluntarily solicited input from the public on the extent to which the proposed rule fell within a categorical exclusion. Per NEPA, agencies must prepare EAs for actions that do not have a reasonably foreseeable significant effect on the quality of the human environment (or if the significance of the effect is unknown) unless, 
                    <E T="03">inter alia,</E>
                     the action is excluded under one of the agency's categorical exclusions (42 U.S.C. 4336(b)(2)). We have complied with NEPA by determining that the rule is covered by a categorical exclusion found at 43 CFR 46.210(i). We explained this determination in an environmental action statement (EAS) that is posted in the docket for this final rule. As explained in the EAS, this rulemaking primarily provides the procedure for 
                    <PRTPAGE P="45679"/>
                    excluding areas from a critical habitat designation but does not apply this procedure to any species' designation; it is not until we are in the process of determining what to designate as critical habitat that this procedure applies to that species. Because the revisions are intended to clarify, interpret, and implement portions of the Act concerning procedures for excluding critical habitat for endangered species or threatened species, we consider the action to be fundamentally administrative, technical, or procedural in nature. We determined that none of the extraordinary circumstances apply to this rulemaking. We appreciate that commenters may have preferred an environmental document that analyzed a range of alternatives, but because we have a categorical exclusion that can be applied to this action, we did not prepare an EA nor was an EIS required, as set forth above.
                </P>
                <P>
                    As explained more fully in our categorical exclusion document, this rulemaking clarifies the procedures and criteria used for designating or revising critical habitat under section 4 of the Act but does not apply these procedures to any species. As a result, the revisions to our regulations are of an administrative, technical, legal or procedural nature and none of the extraordinary circumstances apply (see Required Determinations, below, and our supporting NEPA documentation at available at 
                    <E T="03">https://www.regulations.gov</E>
                     at Docket No. FWS-HQ-ES-2025-0048). To the extent that some commenters assert that the rules are ineligible for these categorical exclusions because they are substantive and non-ministerial, such characteristics are not the focus of the agency's categorical exclusion.
                </P>
                <P>
                    Lastly, we disagree with comments stating that the Services were required to consider all four ESA regulatory provisions proposed on November 21, 2025, as well as the rule to rescind the Services' definition of “harm” under the ESA, in one environmental document to avoid improperly segmenting their actions. Each of these rules are separate actions and are not dependent on one another, 
                    <E T="03">i.e.,</E>
                     any one of the individual rulemaking actions could proceed without any of the others and are not an interdependent part of a larger Federal action. Even within each of the separate, individual rulemaking actions, the regulatory provisions that are subject to revision can be severable from other regulatory provisions addressed in the same rulemaking action. Although each of the four regulations proposed on November 21, 2025, followed a review initiated by E.O. 14154 and S.O. 3418, none of these Executive or Cabinet-level orders are exclusively directed at the ESA and none of the regulations being finalized directly rely on these orders for the specific revisions we are now finalizing in this rule. We also note that two of the rules that the commenters identified (including this rule) are only applicable to FWS could not appropriately be evaluated by NMFS in any NEPA document, as NOAA and the Department of Commerce do not have decision-making authority over rules that apply only to other agencies. See NOAA Companion Manual at 34 that defines “connected action” in relevant part as “a separate Federal action within the authority of NOAA . . .”).
                </P>
                <HD SOURCE="HD2">Other</HD>
                <P>
                    <E T="03">Comment 33:</E>
                     Some commenters requested that we address in the final rule that there is a requirement to conduct NEPA analyses when designating critical habitat within the Tenth Circuit citing 
                    <E T="03">Catron Cnty. Bd. of Comm'rs</E>
                     v. 
                    <E T="03">U.S. Fish &amp; Wildlife Serv.,</E>
                     75 F.3d 1429, 1436 (10th Cir. 1996) (hereafter “
                    <E T="03">Catron County</E>
                    ”). This addition to the rule would clarify that interested parties have a chance to participate in and meaningfully contribute to the environmental analysis underlying future critical habitat designations.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Regulations adopted pursuant to section 4(a) of the Act are exempt from NEPA and do not require an environmental analysis under NEPA. We published a notice outlining our reasons for this determination in the 
                    <E T="04">Federal Register</E>
                     on October 25, 1983 (48 FR 49244). This includes listing, delisting, and reclassification rules, as well as critical habitat designations. In a line of cases starting with 
                    <E T="03">Douglas County</E>
                     v. 
                    <E T="03">Babbitt,</E>
                     48 F.3d 1495 (9th Cir. 1995), the courts have upheld this position. However, as the commenter suggested, when any of the areas that meet the definition of “critical habitat” for the species are in States within the Tenth Circuit, we had been required to undertake a NEPA analysis for that critical habitat designation consistent with the Tenth Circuit ruling in 
                    <E T="03">Catron County Board.</E>
                     We have recently updated our NEPA practice (91 FR 8738, February 24, 2026), and note that the February 2026 Department of Interior Handbook of National Environmental Policy Act Implementing Procedures (516 DM 1; 
                    <E T="03">https://www.doi.gov/media/document/doi-nepa-handbook</E>
                    ) states that critical habitat designations is not a “major federal action,” Section 1.1(a)(6)(iii)(D)(d) provides that “Certain decisions made by the U.S. Fish and Wildlife Service under the Endangered Species Act do not require NEPA compliance: . . .(d) Determinations whether to designate, amend, or rescind critical habitat.” Therefore, we no longer conduct NEPA analyses for any critical habitat designations or revisions, including in the Tenth Circuit.
                </P>
                <P>
                    <E T="03">Comment 34:</E>
                     Commenters expressed concern that the proposed rule would result in inconsistent regulations in which the FWS follows one set of guidelines and NMFS retains their current regulations resulting in potential conflict and lack of transparency.
                </P>
                <P>
                    <E T="03">Response:</E>
                     In some situations, the regulated community is best served if the agencies have the same regulations and policy. However, in other situations it may make sense for the FWS and NMFS to apply their own regulations to be responsive to the needs and circumstances of the species for which they are responsible. We find in this particular instance that differing regulations is the preferred approach.
                </P>
                <P>
                    <E T="03">Comment 35:</E>
                     Several commenters expressed concern about the Service's resource constraints and potential delays associated with the rule. They suggested that expanded weighing analyses could result in slower critical habitat designations, undermining State and partner planning that relies on timely, clear designations. Alternatively, commenters recommended longer public comment windows for future critical habitat rulemakings and commitments to update and reopen analyses when new exclusion requests or data arrive. Commenters suggested that the Service should strengthen in-house expertise in economics, national security, and “other impacts” to put the agency in a position to better defend its determinations.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The mandatory requirements to designate critical habitat according to section 4(b)(6)(A) and section 4(b)(2) of the Act will not change following the finalization of these regulations. These regulations primarily adopt and clarify the provisions in the 2016 policy and regulations at 50 CFR 424.19. These revisions articulate when and how we determine whether the benefits of excluding an area outweigh the benefits of designating the area as critical habitat (exclusion analysis). This rule will provide greater transparency and certainty for the public and stakeholders. The provisions added to the regulations will not create additional workload for the Service but will help to ensure that credible information is considered in making decisions related to exclusions of particular areas from critical habitat designations. We have a history of 
                    <PRTPAGE P="45680"/>
                    contracting support related to our consideration of economic impacts of a critical habitat designation, and this regulation revision will not change that practice. We find that it is more efficient and effective to contract support from experts in the field who stay informed and abreast of new techniques and availability of data sources than relying on internal staff to complete these analyses. We do not find it appropriate or necessary for the Service to become experts in national security impacts or all other relevant impacts of designation of critical habitat.
                </P>
                <P>
                    <E T="03">Comment 36:</E>
                     At least one commenter requested that we limit critical habitat designations to only regulations that are consistent with the U.S. Constitution and requested we make specific commitments concerning the content of future rulemakings.
                </P>
                <P>
                    <E T="03">Our Response:</E>
                     The Service only promulgates regulations that are consistent with the U.S. Constitution. The specific content of future individual rulemakings is beyond the scope of this rulemaking.
                </P>
                <HD SOURCE="HD1">Required Determinations</HD>
                <HD SOURCE="HD2">Regulatory Planning and Review (Executive Orders 12866 and 13563)</HD>
                <P>E.O. 12866 provides that the Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget will review all significant rules. OIRA has determined that this rule is significant and has reviewed it. This rule is considered an E.O. 14192 deregulatory action and we anticipate cost-savings from the future implementation of the rule; however, cost-savings cannot be projected or quantified.</P>
                <P>E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the Nation's regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. E.O. 13653 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this final rule in a manner consistent with these requirements.</P>
                <HD SOURCE="HD2">Regulatory Flexibility Act (5 U.S.C. 601 et seq.)</HD>
                <P>
                    Under the Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA; title II of Pub. L. 104-121, March 29, 1996), whenever a Federal agency is required to publish a notice of rulemaking for any proposed or final rule, it must prepare, and make available for public comment, a regulatory flexibility analysis that describes the effect of the rule on small entities (
                    <E T="03">i.e.,</E>
                     small businesses, small organizations, and small government jurisdictions). However, no regulatory flexibility analysis is required if the head of an agency, or that person's designee, certifies that the rule will not have a significant economic impact on a substantial number of small entities. SBREFA amended the RFA to require Federal agencies to provide a statement of the factual basis for certifying that a rule will not have a significant economic impact on a substantial number of small entities.
                </P>
                <P>We certified at the proposed rule stage that the proposed rule would not have a significant economic impact on a substantial number of small entities (90 FR 52592, November 21, 2025). Nothing in this final rule changes the basis for that conclusion, and we received no information that changes the factual basis of this certification. The following discussion explains our rationale.</P>
                <P>Under the RFA, as amended, and as understood in light of recent court decisions, Federal agencies are required to evaluate the potential incremental impacts of rulemaking on those entities directly regulated by the rulemaking itself; in other words, the RFA does not require agencies to evaluate the potential impacts to indirectly regulated entities. This rulemaking revises the Service's regulations designating critical habitat for endangered and threatened species under the Act. The Service is the only entity that is directly affected by this regulation change at 50 CFR part 17 because changes to this section of the Code of Federal Regulations merely describe how we will designate critical habitat under the ESA. External entities, including any small businesses, small organizations, or small governments, are not directly regulated by this rule and thus will not experience any direct economic impacts from this rule. Therefore, we certify that this rule will not have a significant economic effect on a substantial number of small entities.</P>
                <HD SOURCE="HD2">Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.)</HD>
                <P>
                    In accordance with the Unfunded Mandates Reform Act (2 U.S.C. 1501 
                    <E T="03">et seq.</E>
                    ), we make the following finding:
                </P>
                <P>(a) On the basis of information contained above in the Regulatory Flexibility Act section, this rule will not “significantly or uniquely” affect small governments. We have determined and certify pursuant to the Unfunded Mandates Reform Act that this rule will not impose a cost of $100 million or more in any given year on local or State governments or private entities. A small government agency plan is not required. As explained above, small governments will not be affected because the rule will not place additional requirements on any city, county, or other local municipalities.</P>
                <P>(b) This rule will not produce a Federal mandate on State, local, or Tribal governments or the private sector of $100 million or greater in any year; that is, this rule is not a “significant regulatory action” under the Unfunded Mandates Reform Act. This rule will impose no obligations on State, local, or Tribal governments.</P>
                <HD SOURCE="HD2">Takings—E.O. 12630</HD>
                <P>In accordance with E.O. 12630, this rule will not have significant takings implications. This rule will not directly affect private property, nor will it cause a physical or regulatory taking. A takings implication assessment is not required because this rule (1) will not effectively compel a property owner to suffer a physical invasion of property and (2) will not deny all economically beneficial or productive use of the land or aquatic resources. This rule will substantially advance a legitimate government interest (conservation and recovery of endangered species and threatened species) and will not present a barrier to all reasonable and expected beneficial use of private property.</P>
                <HD SOURCE="HD2">Federalism—E.O. 13132</HD>
                <P>In accordance with E.O. 13132, this rule does not have significant federalism effects. A federalism summary impact statement is not required. This rule pertains only to designation of critical habitat under the ESA and will not have substantial direct effects on the States, on the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <HD SOURCE="HD2">Civil Justice Reform—E.O. 12988</HD>
                <P>
                    This rule will not unduly burden the judicial system and meets the applicable standards provided in sections 3(a) and 
                    <PRTPAGE P="45681"/>
                    3(b)(2) of E.O. 12988. This rule will clarify factors for designating critical habitat pursuant to the ESA.
                </P>
                <HD SOURCE="HD2">Government-to-Government Relationship With Tribes</HD>
                <P>In accordance with the President's memorandum of (“Government-to-Government Relations with Native American Tribal Governments”; 59 FR 22951, May 4, 1994), E.O.13175 (“Consultation and Coordination with Indian Tribal Governments”), the President's memorandum of November 30, 2022 (“Uniform Standards for Tribal Consultation;” 87 FR 74479, December 5, 2022), and the Department of the Interior's manual at 512 DM 2, we considered possible effects of this rule on federally recognized Indian Tribes and Alaska Native Corporations (ANCs). An informational webinar was held for federally recognized Tribes on December 3, 2025, and in response to Tribal interest, the Services held a question and answer session for federally recognized Tribes on December 10, 2025, to provide additional time for Tribal input and questions. After the opening of the public comment period, we received comments, requests for coordination, or requests for government-to-government consultation from multiple Tribes.</P>
                <P>The Service has reached a conclusion that the changes to these regulations do not directly affect specific species or Tribal lands. This rule revises regulations for excluding critical habitat for endangered species and threatened species pursuant to the Act. This rule is general in nature and does not directly affect any specific Tribal lands, treaty rights, or Tribal trust resources. Therefore, we conclude that this rule does not have Tribal implications under section 1(a) of E.O. 13175. Thus, formal government-to-government consultation is not required by E.O. 13175 and related policies of the Department of the Interior. These regulations will not have substantial direct effects 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. We will continue to collaborate with Tribes and ANCs on issues related to federally listed species and their habitats and work with them as we administer the provisions of the Act; see Joint S.O. 3206 (“American Indian Tribal Rights, Federal-Tribal Trust Responsibilities, and the Endangered Species Act,” June 5, 1997)).</P>
                <HD SOURCE="HD2">
                    Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    )
                </HD>
                <P>
                    This rule does not contain any new collection of information that requires approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ). 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>
                <HD SOURCE="HD2">
                    National Environmental Policy Act (42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    )
                </HD>
                <P>
                    We analyzed this rule pursuant to the National Environmental Policy Act (NEPA; 42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ), the Department of the Interior regulations on Implementation of the National Environmental Policy Act (43 CFR part 46), and the Department of the Interior Handbook of National Environmental Policy Act Implementing Procedures (516 DM 1). Federal agencies must prepare an environmental impact statement for a proposed major Federal action, that would have a reasonably foreseeable significant effect on the quality of the human environment (42 U.S.C. 4332(c)). We have determined that a detailed statement under NEPA is not required because the rule is covered by a categorical exclusion; we prepared an Environmental Action Statement accordingly. Please see our supporting NEPA documentation, available at 
                    <E T="03">https://www.regulations.gov</E>
                     at Docket No. FWS-HQ-ES-2025-0048, for additional details.
                </P>
                <P>We find that the categorical exclusion found at 43 CFR 46.210(i) applies to these regulation changes. At 43 CFR 46.210(i), the Department of the Interior has found that the following category of actions do not individually or cumulatively have a significant effect on the human environment and are, therefore, categorically excluded from the requirement for completion of an environmental assessment or environmental impact statement: Policies, directives, regulations, and guidelines that are of an administrative, financial, legal, technical, or procedural nature; or whose environmental effects are too broad, speculative, or conjectural to lend themselves to meaningful analysis and will later be subject to the NEPA process, either collectively or case-by-case. We have also considered whether any of the extraordinary circumstances described in 43 CFR 46.215 apply, and we did not identify any extraordinary circumstances that apply to this rulemaking.</P>
                <HD SOURCE="HD2">Energy Supply, Distribution or Use—E.O. 13211</HD>
                <P>E.O. 13211 (Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use) requires agencies to prepare statements of energy effects “to the extent permitted by law” when undertaking actions identified as significant energy actions (66 FR 28355, May 22, 2001). E.O. 13211 defines a “significant energy action” as an action that (i) is a significant regulatory action under E.O. 12866 (or any successor order); and (ii) is likely to have a significant adverse effect on the supply, distribution, or use of energy. The revised regulations are not expected to affect energy supplies, distribution, and use. Therefore, this action is not a significant energy action, and there is no requirement to prepare a statement of energy effects for this action.</P>
                <HD SOURCE="HD2">
                    Endangered Species Act of 1973 (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    )
                </HD>
                <P>
                    In developing this rule, the FWS is acting in our unique statutory role as administrator of the Act and is engaged in a legal exercise of interpreting the standards of the Act. The FWS's administration of the Act is not in itself subject to the Act's provisions, including section 7(a)(2). The FWS has a historical practice of issuing its general regulations under the ESA without undertaking section 7 consultation. This practice accords with the plain language, structure, and purposes of the ESA, which does not place a consultation obligation on the FWS's administration of the Act. Although the FWS consults on actions through intra-agency consultations where appropriate (
                    <E T="03">e.g.,</E>
                     issuance of section 10 permits and actions under statutory authorities other than the ESA), in those instances the FWS is acting principally as an “action agency” implementing provisions of the Act or other statutes. Here, by contrast, the FWS is acting solely in our role as administrator of the ESA; we are also not administering the Act to propose or take a specific action. The FWS is carrying out the most fundamental exercise of our role as administrator of the ESA, and the Act cannot reasonably be construed as requiring the FWS to “consult” with ourselves under section 7(a)(2) in such cases.
                </P>
                <HD SOURCE="HD1">Authority</HD>
                <P>
                    We issue this rule under the authority of the Endangered Species Act, as amended (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <LSTSUB>
                    <PRTPAGE P="45682"/>
                    <HD SOURCE="HED">List of Subjects in 50 CFR Part 17</HD>
                    <P>Endangered and threatened species, Exports, Imports, Plants, Reporting and recordkeeping requirements, Transportation, Wildlife.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Regulation Promulgation</HD>
                <P>For the reasons discussed in the preamble, we hereby amend part 17 of chapter I, title 50 of the Code of Federal Regulations as set forth below:</P>
                <PART>
                    <HD SOURCE="HED">PART 17—ENDANGERED AND THREATENED WILDLIFE AND PLANTS </HD>
                </PART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>1. The authority citation for part 17 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>16 U.S.C. 1361-1407; 1531-1544; and 4201-4245, unless otherwise noted.</P>
                    </AUTH>
                </REGTEXT>
                <SUBPART>
                    <HD SOURCE="HED">Subpart J—[Redesignated as Subpart K]</HD>
                </SUBPART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>2. Redesignate subpart J, consisting of §§ 17.100 through 17.199, as subpart K.</AMDPAR>
                </REGTEXT>
                <SUBPART>
                    <HD SOURCE="HED">Subpart I—[Redesignated as Subpart J]</HD>
                </SUBPART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>3. Redesignate subpart I, consisting of §§ 17.94 through 17.99, as subpart J.</AMDPAR>
                </REGTEXT>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>4. Add new subpart I, consisting of § 17.90, to read as follows:</AMDPAR>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart I—Considerations of Impacts and Exclusions From Critical Habitat</HD>
                        <SECTION>
                            <SECTNO>§ 17.90 </SECTNO>
                            <SUBJECT>Impact analysis and exclusions from critical habitat.</SUBJECT>
                            <P>
                                (a) At the time of publication of a proposed rule to designate critical habitat, the Secretary will make available for public comment the draft economic analysis of the designation. The draft economic analysis will be summarized in the 
                                <E T="04">Federal Register</E>
                                 notice of the proposed designation of critical habitat. The Secretary will also identify any national security or other relevant impacts that the Secretary determines are contained in a particular area of proposed designation. Based on the best information available regarding economic, national security, and other relevant impacts, the proposed designation of critical habitat will identify the areas that the Secretary has reason to consider for exclusion and explain why. The identification of areas in the proposed rule that the Secretary has reason to consider for exclusion is neither binding nor exhaustive. “Economic impacts” may include, but are not limited to, the economy of a particular area, productivity, jobs, and any opportunity costs arising from the critical habitat designation (such as those anticipated from reasonable and prudent alternatives that may be identified through a section 7 consultation), as well as possible benefits and transfers (such as outdoor recreation and ecosystem services). “Other relevant impacts” may include, but are not limited to, impacts to Tribes, States, local governments, public health and safety, community interests, the environment (such as increased risk of wildfire or pest and invasive species management), Federal lands, and conservation plans, agreements, or partnerships. The Secretary will consider impacts at a scale that the Secretary determines to be appropriate and will compare the impacts with and without the designation. Impacts may be qualitatively or quantitatively described.
                            </P>
                            <P>(b) Prior to finalizing the designation of critical habitat, the Secretary will consider the probable economic, national security, and other relevant impacts of the designation upon proposed or ongoing activities.</P>
                            <P>(c)(1) Subject to paragraph (c)(2) of this section, the Secretary has discretion as to whether to conduct an exclusion analysis under 16 U.S.C. 1533(b)(2).</P>
                            <P>(2) The Secretary will conduct an exclusion analysis when:</P>
                            <P>(i) The proponent of excluding a particular area (including, but not limited to, permittees, lessees, or others with a permit, lease, or contract on federally managed lands) has presented credible information regarding the existence of a meaningful economic or other relevant impact supporting a benefit of exclusion for that particular area; or</P>
                            <P>(ii) The Secretary otherwise decides to exercise discretion to evaluate any particular area for possible exclusion.</P>
                            <P>(d) When the Secretary conducts a discretionary exclusion analysis pursuant to paragraph (c) of this section, the Secretary shall weigh the benefits of including or excluding particular areas in the designation of critical habitat, according to the following principles:</P>
                            <P>(1) When analyzing the benefits of including or excluding any particular area based on impacts identified by experts in, or by sources with firsthand knowledge of, areas that may be outside the scope of the Service's expertise, the Secretary will give weight to those benefits consistent with the expert or firsthand information, unless the Secretary has knowledge or material evidence that rebuts that information. Impacts that may be outside the scope of the Service's expertise include, but are not limited to:</P>
                            <P>(i) Nonbiological impacts identified by federally recognized Indian Tribes, consistent with all applicable Executive and Secretary's orders;</P>
                            <P>(ii) Nonbiological impacts identified by State or local governments;</P>
                            <P>(iii) Impacts based on national security or homeland security implications identified by the Department of Defense, Department of Homeland Security, or any other Federal agency responsible for national security or homeland security; and</P>
                            <P>(iv) Nonbiological impacts identified by a permittee, lessee, or contractor applicant for a permit, lease, or contract on Federal lands.</P>
                            <P>(2) When analyzing the benefit of including or excluding any particular area based on economic impacts or other relevant impacts described in paragraph (b) of this section, the Secretary will weigh such impacts relative to the conservation value of that particular area. For benefits of inclusion or exclusion based on impacts that fall within the scope of the Service's expertise, the Secretary will give weight to those benefits in light of the Service's expertise.</P>
                            <P>(3) When analyzing the benefits of including or excluding particular areas covered by conservation plans, agreements, or partnerships that have been authorized by a permit under section 10 of the Act, the Secretary will consider the following factors:</P>
                            <P>(i) Whether the permittee is properly implementing the conservation plan or agreement;</P>
                            <P>(ii) Whether the species for which critical habitat is being designated is a covered species in the conservation plan or agreement; and</P>
                            <P>(iii) Whether the conservation plan or agreement specifically addresses the habitat of the species for which critical habitat is being designated and meets the conservation needs of the species in the planning area.</P>
                            <P>(4) When analyzing the benefits of including or excluding particular areas covered by conservation plans, agreements, or partnerships that have not been authorized by a permit under section 10 of the Act, factors that the Secretary may consider include, but are not limited to:</P>
                            <P>(i) The degree to which the record of the plan, or information provided by proponents of an exclusion, supports a conclusion that a critical habitat designation would impair the realization of the benefits expected from the plan, agreement, or partnership.</P>
                            <P>(ii) The extent of public participation in the development of the conservation plan.</P>
                            <P>
                                (iii) The degree to which agency review and required determinations (
                                <E T="03">e.g.,</E>
                                 State regulatory requirements) have been completed, as necessary and appropriate.
                                <PRTPAGE P="45683"/>
                            </P>
                            <P>
                                (iv) Whether National Environmental Policy Act (NEPA; 42 U.S.C. 4321 
                                <E T="03">et seq.</E>
                                ) reviews or similar reviews occurred, and the nature of any such reviews.
                            </P>
                            <P>(v) The demonstrated implementation and success of the chosen mechanism.</P>
                            <P>(vi) The degree to which the plan or agreement provides for the conservation of the physical or biological features that are essential to the conservation of the species;</P>
                            <P>(vii) Whether there is a reasonable expectation that the conservation management strategies and actions contained in a management plan or agreement will be implemented;</P>
                            <P>(viii) Whether the plan or agreement contains a monitoring program and adaptive management to ensure that the conservation measures are effective and can be modified in the future in response to new information.</P>
                            <P>(e) If the Secretary conducts an exclusion analysis under paragraph (c) of this section, and if the Secretary determines that the benefits of excluding a particular area from critical habitat outweigh the benefits of specifying that area as part of the critical habitat, then the Secretary shall exclude that area, unless the Secretary determines, based on the best scientific and commercial data available, that the failure to designate that area as critical habitat will result in the extinction of the species concerned.</P>
                        </SECTION>
                    </SUBPART>
                </REGTEXT>
                <SIG>
                    <NAME>Kevin Lilly,</NAME>
                    <TITLE>Principal Deputy for Fish and Wildlife and Parks, exercising the delegated authority of the Assistant Secretary for Fish and Wildlife and Parks, Department of the Interior.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14629 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <CFR>50 CFR Part 17</CFR>
                <DEPDOC>[Docket No. FWS-R4-ES-2022-0104; FXES1111090FEDR-267-FF09E21000]</DEPDOC>
                <RIN>RIN 1018-BG24</RIN>
                <SUBJECT>Endangered and Threatened Wildlife and Plants; Endangered Species Status for Florida Keys Mole Skink</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        We, the U.S. Fish and Wildlife Service (Service), list the Florida Keys mole skink (
                        <E T="03">Plestiodon egregius egregius</E>
                        ), a lizard subspecies from the Florida Keys, Florida, as an endangered species under the Endangered Species Act of 1973 (Act), as amended. This rule extends the protections of the Act to this species.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective August 20, 2026.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        This final rule is available on the internet at 
                        <E T="03">https://www.regulations.gov.</E>
                         Comments and materials we received are available for public inspection at 
                        <E T="03">https://www.regulations.gov</E>
                         at Docket No. FWS-R4-ES-2022-0104.
                    </P>
                    <P>
                        <E T="03">Availability of supporting materials:</E>
                         Supporting materials we used in preparing this rule, such as the species status assessment report, are available at 
                        <E T="03">https://www.regulations.gov</E>
                         at Docket No. FWS-R4-ES-2022-0104.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Nikki Colangelo, Division Manager, Classification and Recovery, Florida Ecological Services Field Office; 772-226-8138 
                        <E T="03">nikki_colangelo@fws.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>
                <HD SOURCE="HD1">Executive Summary</HD>
                <P>
                    <E T="03">Why we need to publish a rule.</E>
                     Under the Act (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ), a species warrants listing if it meets the definition of an endangered species (in danger of extinction throughout all or a significant portion of its range) or a threatened species (likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range). If we determine that a species warrants listing, we must list the species promptly and designate the species' critical habitat to the maximum extent prudent and determinable. We have determined that the Florida Keys mole skink meets the Act's definition of an endangered species; therefore, we are listing it as such. Listing a species as an endangered or threatened species can be completed only by issuing a rule through the Administrative Procedure Act rulemaking process (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <P>
                    <E T="03">What this document does.</E>
                     This rule lists the Florida Keys mole skink as an endangered species under the Act.
                </P>
                <P>
                    <E T="03">The basis for our action.</E>
                     Under the Act, we may determine that a species is an endangered or threatened species because of any of five factors: (A) The present or threatened destruction, modification, or curtailment of its habitat or range; (B) overutilization for commercial, recreational, scientific, or educational purposes; (C) disease or predation; (D) the inadequacy of existing regulatory mechanisms; or (E) other natural or manmade factors affecting its continued existence. We have determined that the Florida Keys mole skink is endangered due to threats associated with sea level rise, increased high tide flooding, and increased-intensity storm events (Factor E), as well as threats due to habitat loss and degradation that result from development and habitat disturbance (Factor A).
                </P>
                <HD SOURCE="HD1">Previous Federal Actions</HD>
                <P>Please refer to the proposed listing and critical habitat rule for the Florida Keys mole skink published on September 27, 2022 (87 FR 58648), for a detailed description of previous Federal actions concerning this species. That document proposed to list the Florida Keys mole skink as a threatened species with regulatory provisions under section 4(d) of the Act (“a 4(d) rule”) and to designate critical habitat.</P>
                <HD SOURCE="HD1">Peer Review</HD>
                <P>A species status assessment (SSA) team prepared an SSA report for the Florida Keys mole skink. The SSA team was composed of Service biologists, in consultation with other species experts. The SSA report represents a compilation of the best scientific and commercial data available concerning the status of the species, including the impacts of past, present, and future factors (both negative and beneficial) affecting the species.</P>
                <P>
                    In accordance with our joint policy with the National Marine Fisheries Service (NMFS) on peer review that published in the 
                    <E T="04">Federal Register</E>
                     on July 1, 1994 (59 FR 34270), and our August 22, 2016, memorandum updating and clarifying the role of peer review in listing and recovery actions under the Act (
                    <E T="03">https://www.fws.gov/sites/default/files/documents/peer-review-policy-directors-memo-2016-08-22.pdf</E>
                    ), we solicited independent scientific review of the information contained in the Florida Keys mole skink SSA report. As discussed in the proposed rule, we sent the SSA report to nine independent peer reviewers and received two responses. The peer reviews can be found at 
                    <E T="03">https://www.regulations.gov.</E>
                     In preparing the proposed rule, we incorporated the results of these reviews, as appropriate, into the SSA report, which was the foundation for the proposed rule and 
                    <PRTPAGE P="45684"/>
                    this final rule. A summary of the peer review comments and our responses can be found in the Summary of Comments and Recommendations below.
                </P>
                <HD SOURCE="HD1">Summary of Changes From the Proposed Rule</HD>
                <P>The final rule incorporates changes to our proposed listing rule and SSA report based on the comments we received, as discussed below in the Summary of Comments and Recommendations. Based on updated data and our further consideration of the overall low numbers of Florida Keys mole skink on most islands, we determined the risk from sea level rise and high tide flooding is higher (see Determination of Florida Keys Mole Skink Status, below) than characterized in our proposal to list the Florida Keys mole skink as a threatened species (87 FR 58648; September 27, 2022). We reassessed our analysis, including new sea level rise data (Sweet et al. 2022, entire) and new updated National Oceanic and Atmospheric Administration (NOAA) inundation data layers that were used to determine habitat effects (NOAA 2024a, unpaginated), and found that the Florida Keys mole skink is at a higher risk to threats from sea level rise throughout its range. We have updated our analysis with these data and information in our SSA report and in this final rule. Thus, after evaluating the best available information, we determined that the Florida Keys mole skink is currently in danger of extinction because of the magnitude and immediacy of the threats it faces, as compounded by the species' likely inherently low numbers. Because we determined that the Florida Keys mole skink meets the definition of an endangered species, a 4(d) rule is inapplicable; consequently, we have removed the regulatory provisions under the authority of section 4(d) of the Act from this final rule. Lastly, we made minor editorial and nonsubstantive corrections throughout the SSA report and this final rule.</P>
                <HD SOURCE="HD1">Summary of Comments and Recommendations</HD>
                <P>In the proposed rule published on September 27, 2022 (87 FR 58648), we requested that all interested parties submit written comments on the proposal by November 28, 2022. Due to the impact of Hurricane Ian, we extended the public comment period to January 12, 2023, in order to allow all interested parties time to comment (see 87 FR 72958). We also contacted appropriate Federal and State agencies, Tribal entities, scientific experts and organizations, and other interested parties and invited them to comment on the proposal. Newspaper notices inviting general public comment were published in the Key West Citizen Newspaper and the Miami Herald Newspaper. We did not receive any requests for a public hearing. All substantive information received during the comment periods has either been incorporated directly into this final determination or is addressed below.</P>
                <HD SOURCE="HD2">Peer Reviewer Comments</HD>
                <P>As discussed in Peer Review, above, we received comments from two peer reviewers on the draft SSA report. We reviewed all comments we received from the peer reviewers for substantive issues and new information regarding the contents of the SSA report. Peer reviewer comments are addressed in the following summary. As discussed above, because we conducted this peer review prior to the publication of our proposed rule, we had already incorporated all applicable peer review comments into version 2.0 of the SSA report, which was the foundation for the proposed rule and this final rule.</P>
                <P>
                    <E T="03">(1) Comment:</E>
                     One peer reviewer commented that our use of the term “analysis of comparative population resiliency” was misleading because an analysis was not performed.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     We reviewed that section of the SSA report and changed the word “analysis” to “assessment” as we did not perform a quantitative analysis to determine current population resiliency. Instead, current population resiliency was based on a comparative assessment between islands regarding the number of individual Florida Keys mole skinks and the number of locations of skinks documented for each island.
                </P>
                <HD SOURCE="HD2">Public Comments</HD>
                <P>
                    <E T="03">(2) Comment:</E>
                     One commenter indicated that our current population resiliency estimates were too optimistic given the lack of available data regarding population trends, structure, or demographics—and the absence of abundance data. This commenter stated that an estimate of the extent and quality of occupied suitable habitat is a better proxy for current and future status of the species.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     In the SSA report and the proposed rule, we describe our current population resiliency assessment as comparative among populations. Current population resiliency is based on time passed since the last detection and the number of distinct locations (separated by 100 meters (m) (328 feet (ft)) or more) where current detections were recorded on an island (Service 2024, p. 49). Thus, an island with a greater number of Florida Keys mole skinks found at multiple locations on an island is considered to have higher resiliency than an island with only one or two detections from the same location.
                </P>
                <P>For the Florida Keys mole skink, we define suitable habitat as beach and dune, coastal berm, rockland hammock, and pine rockland habitats that provide ground cover in the form of leaf litter and wrack material. As outlined in the SSA report (Service 2024, p. 53), we are not able to calculate the full extent of Florida Keys mole skink suitable habitat for all islands that are considered occupied. Furthermore, even when suitable habitat exists, it does not necessarily mean Florida Keys mole skinks are present. For example, Ohio Key is regularly surveyed by Service Refuge staff and despite available high-quality suitable habitat and numerous searches, no Florida Keys mole skinks have been located there (Service 2024, pp. 19, 34, 48). Additionally, Florida Keys mole skink have been found in urban areas that appear to lack suitable habitat such as parking lots, cemeteries, residential yards, and golf courses, though we lack an understanding of how these inland urban areas are used (Service 2024, p. 36). Thus, the existence of suitable habitat does not mean that the species is present, and the absence of suitable habitat does not mean that the species is absent. We used the best available science in the form of actual detection data and the number of individual Florida Keys mole skinks to help inform population resiliency. However, for our overall evaluation of current condition, we took into consideration not only the population resiliency assessment, but also how threats have impacted the availability of Florida Keys mole skink habitat.</P>
                <P>
                    <E T="03">(3) Comment:</E>
                     One commenter thought that we must consider impacts of sea level rise beyond 2060 and suggested that the Florida Keys mole skink should be listed as endangered rather than threatened, based on the future potential for widespread loss of habitat due to climate change impacts. Additionally, another commenter stated that our decision to limit the sea level rise analysis to 2060 is arbitrarily inconsistent with our treatment of other species impacted by sea level rise and that are proposed for listing as endangered species.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     In the SSA report, we include evaluation of sea level rise impacts on Florida Keys mole skink habitat to 2100 (years 2020-2100; Service 2024 pp. 56-65, appendices D 
                    <PRTPAGE P="45685"/>
                    and E). As outlined in our proposed rule (87 FR 58648, September 27, 2022), we determined that consideration of sea level rise impacts beyond 2060 was unnecessary for our proposed threatened species determination because widespread habitat loss is expected to occur by that time. However, for our final rule we incorporated new sea level rise data (Sweet et al. 2022, entire) and new data layers that were used to determine habitat effects (NOAA 2024a, unpaginated) and we found that the Florida Keys mole skink is at imminent risk from the impacts of sea level rise throughout its range. As a result, for this final rule we focus on current impacts to the species and changes in the near term (by 2040) because loss of skink habitat is already occurring. Four Florida Keys mole skink populations (including moderate and high-resiliency populations) are projected to be extirpated by 2040, and up to 75 percent of Florida Keys mole skink habitat is projected to be lost by 2040. Accordingly, after further analysis, we have determined that the species meets the Act's definition of an endangered species (see Determination of Florida Keys Mole Skink Status section of this final rule), given the current and near-term threats from sea level rise, increased high tide flooding, and increased-intensity storm events (Factor E).
                </P>
                <P>
                    <E T="03">(4) Comment:</E>
                     One commenter referenced our use of Sweet et al. (2017, entire), a study that projects sea level rise scenarios specifically for the Florida Keys and pointed out that we did not include impacts of sea level rise from ice sheet melting, which would make sea level rise significantly higher. This commenter also provided the Sweet et al. (2022, entire) publication, which is an update to the 2017 study.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     The sea level rise models projected by Sweet et al. (2017, entire) incorporate the impacts from ice sheet melting in the sea level rise projections, and thus, this information was accounted for in our projections. The Sweet et al. (2022, entire) publication was made publicly available after we had completed our SSA report, version 2.0. However, we compared the Sweet et al. (2017, entire) sea level rise projections to the new updated Sweet et al. (2022, entire) projections and added this comparison summary as an appendix to the SSA report (Service 2024, appendix E). We have updated our analysis with these data and information in our SSA report and in this final rule.
                </P>
                <P>
                    <E T="03">(5) Comment:</E>
                     One commenter suggested that we include a more detailed evaluation of the impacts of saltwater intrusion on the root zone of an islands upland vegetation because freshwater-dependent habitats such as upland hammocks and rocklands could be impacted by saltwater intrusion, and Florida Keys mole skinks have been found in these habitats.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     In the SSA report, we provided a more detailed discussion of how the inundation of soils from storm surges and sea level rise can cause saltwater intrusion, compaction of sand, and the inability or difficulty for Florida Keys mole skinks to dig nests and burrow (Service 2024, pp. 30, 32). We also indicated that vegetation is expected to increasingly convert to tidal and salt-tolerant species within inland areas that can contain suitable habitats for Florida Keys mole skink including rockland hammock and pine rockland habitats. These habitats are used by Florida Keys mole skink, and changes to the quality and availability of these habitats as a result of saltwater intrusion could have negative impacts on Florida Keys mole skink (Service 2024, p. 26). We added an additional discussion in the threats section of the SSA report that, over time, vegetation succession (from root zone salinization) will result in a transition from fresh-water-dependent pine rocklands and rockland hammock into saltwater-tolerant habitats, initially in the Lower and Middle Keys in the forthcoming decades. In this final rule, we also include saltwater intrusion in our discussion of additional threats that were considered cumulatively for their effects to the Florida Keys mole skink viability.
                </P>
                <P>
                    <E T="03">(6) Comment:</E>
                     One commenter indicated that our conclusion in the proposed rule that new development will not pose a substantive threat to the Florida Keys mole skink is inconsistent with our finding in the SSA report that skinks inhabit the same beaches, coastal berm, and hammock habitat that is desirable for residential and commercial development.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     We understand how our statement in the proposed rule that new development will not likely pose a substantive threat to the Florida Keys mole skink could be perceived as being in tension with some of the information in the SSA report as well as information elsewhere in the proposed rule. In the SSA report and the proposed rule, we indicated that very little new development is projected within the Florida Keys. Land development ordinances are in place to guide any new development away from environmentally sensitive areas. However, we recognize that any new development, including the effects of development of the remaining platted parcels in the Florida Keys, has the potential to further reduce habitat and impact individual survival of Florida Keys mole skinks and, therefore, may decrease population resiliency. Resiliency may be further reduced due to loss of habitat connectivity and a decrease of dispersal of individuals within populations as habitat becomes increasingly fragmented. Although we do not have data available to model projected impacts of development on the Florida Keys mole skink, in our assessment of the species' current condition, we considered how potential new development (although projected to be low) would impact the species. In this final rule, we determined that the Florida Keys mole skink is an endangered species due primarily to threats associated with sea level rise, increased high tide flooding, and increased-intensity storm events.
                </P>
                <HD SOURCE="HD1">I. Final Listing Determination</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    A thorough review of the taxonomy, life history, and ecology of the Florida Keys mole skink (
                    <E T="03">Plestiodon egregius egregius)</E>
                     is presented in the SSA report (Service 2024, pp. 10-22). The Florida Keys mole skink is one of five distinct subspecies of mole skinks in Florida, all in the genus 
                    <E T="03">Plestiodon</E>
                     (previously 
                    <E T="03">Eumeces</E>
                    ) (Brandley et al. 2005, pp. 387-388) and is endemic to the Florida Keys. The Florida Keys mole skink is a small, slender lizard with a long, brilliantly colored tail (color variation from orange and red to faded pink) and short legs. Adults reach a total length of approximately 12.7 centimeters (cm) (5 inches (in)) (Florida Natural Areas Inventory (FNAI) 2001, p. 1). The age at first reproduction is estimated at 2 years, and generation time is approximately 4 years (McCoy 2010, p. 641).
                </P>
                <P>
                    The Florida Keys mole skink is semi-fossorial (adapted to digging and living underground) and cryptic in nature. The Florida Keys mole skink moves through sand and soil using a swimming motion and prefers loose soils that allow for easy mobility. Loose soils are also conducive for burrowing and nesting (Christman 1992, p. 179). Ground cover, such as leaf litter, debris, and tidal wrack (organic material and other debris deposited at high tide) provide shelter and a food resource (insects and arthropods that live under ground cover) for the Florida Keys mole skink. Florida Keys mole skinks are found on low-lying islands with preferred habitats consisting of beaches, dunes, 
                    <PRTPAGE P="45686"/>
                    coastal berms, rockland hammocks, and pine rocklands. However, individuals have been detected in developed areas such as cemeteries, vacant lots, backyards, along roads, and golf courses (Mays and Enge 2016, p. 10; Emerick 2017a, pers. comm.; iNaturalist 2020, entire). Home range distances for the Florida Keys mole skink are estimated at a maximum 328 ft (100 m) (Gianopulos 2001, p. 81; Mushinsky et al. 2001, p. 54; McCoy et al. 2020, p. 8), and dispersal between islands is limited (Mercier 2018, pp. 18-21).
                </P>
                <P>The Florida Keys are a low-lying chain of small ancient coral reef islands extending 125 miles (mi) (201 kilometers (km)) southwest from the southeastern tip of the Florida peninsula. The Florida Keys are primarily mangrove islands composed of predominantly limestone substrate (ancient coral reef). The average elevation of the Florida Keys is less than 4.0 (ft) (1.2 m) above sea level (Service 2024, p. 13). Florida Keys mole skinks have been documented on 23 islands throughout the Florida Keys (see figure, below). Fifteen of these islands have had detections in the last two decades (years 2000 to 2021); four islands have had relatively recent detections (years 1970 to 1999); and four islands have had historical detections (before 1970). Systematic surveys have not been conducted for the Florida Keys mole skink across all of the Florida Keys; therefore, the true spatial distribution of populations throughout the Florida Keys is unknown. Consequently, Florida Keys mole skinks may occur on Florida Keys other than those reported.</P>
                <GPH SPAN="3" DEEP="352">
                    <GID>ER21JY26.000</GID>
                </GPH>
                <HD SOURCE="HD1">Regulatory and Analytical Framework</HD>
                <HD SOURCE="HD2">Regulatory Framework</HD>
                <P>
                    Section 4 of the Act (16 U.S.C. 1533) and the implementing regulations in title 50 of the Code of Federal Regulations set forth the procedures for determining whether a species is an endangered species or a threatened species, issuing protective regulations for threatened species, and designating critical habitat for endangered and threatened species. On April 5, 2024, jointly with the National Marine Fisheries Service, we issued a final rule that revised the regulations in 50 CFR part 424 regarding how we add, remove, and reclassify endangered and threatened species and what criteria we apply when designating listed species' critical habitat (89 FR 24300). On the same day, we published a final rule revising our protections for endangered species and threatened species at 50 CFR part 17 (89 FR 23919). These final rules are now in effect and are incorporated into the current regulations. Our analysis for this final decision applied our current regulations. Given that we proposed listing for this species under our prior regulations (revised in 2019), we have also undertaken an analysis of whether our decision would be different if we had continued to apply the 2019 regulations; we concluded that the decision would be the same. The analyses under both the regulations currently in effect and the 2019 regulations are available on 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <P>
                    The Act defines an “endangered species” as a species that is in danger of extinction throughout all or a significant portion of its range, and a 
                    <PRTPAGE P="45687"/>
                    “threatened species” as a species that is likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range. The Act requires that we determine whether any species is an endangered species or a threatened species because of any of the following factors:
                </P>
                <P>(A) The present or threatened destruction, modification, or curtailment of its habitat or range;</P>
                <P>(B) Overutilization for commercial, recreational, scientific, or educational purposes;</P>
                <P>(C) Disease or predation;</P>
                <P>(D) The inadequacy of existing regulatory mechanisms; or</P>
                <P>(E) Other natural or manmade factors affecting its continued existence.</P>
                <P>These factors represent broad categories of natural or human-caused actions or conditions that could have an effect on a species' continued existence. In evaluating these actions and conditions, we look for those that may have a negative effect on individuals of the species, as well as other actions or conditions that may ameliorate any negative effects or may have positive effects.</P>
                <P>We use the term “threat” to refer in general to actions or conditions that are known to or are reasonably likely to negatively affect individuals of a species. The term “threat” includes actions or conditions that have a direct impact on individuals (direct impacts), as well as those that affect individuals through alteration of their habitat or required resources (stressors). The term “threat” may encompass—either together or separately—the source of the action or condition or the action or condition itself.</P>
                <P>However, the mere identification of any threat(s) does not necessarily mean that the species meets the statutory definition of an “endangered species” or a “threatened species.” In determining whether a species meets either definition, we must evaluate all identified threats by considering the species' expected response and the effects of the threats—in light of those actions and conditions that will ameliorate the threats—on an individual, population, and species level. We evaluate each threat and its expected effects on the species, then analyze the cumulative effect of all of the threats on the species as a whole. We also consider the cumulative effect of the threats in light of those actions and conditions that will have positive effects on the species, such as any existing regulatory mechanisms or conservation efforts. The Secretary determines whether the species meets the definition of an “endangered species” or a “threatened species” only after conducting this cumulative analysis and describing the expected effect on the species.</P>
                <P>
                    The Act does not define the term “foreseeable future,” which appears in the statutory definition of “threatened species.” Our implementing regulations at 50 CFR 424.11(d) set forth a framework for evaluating the foreseeable future on a case-by-case basis, which is further described in the 2009 Memorandum Opinion on the foreseeable future from the Department of the Interior, Office of the Solicitor (M-37021, January 16, 2009; “M-Opinion,” available online at 
                    <E T="03">https://www.doi.gov/sites/doi.opengov.ibmcloud.com/files/uploads/M-37021.pdf</E>
                    ). The foreseeable future extends as far into the future as the U.S. Fish and Wildlife Service and NMFS (hereafter, the Services) can make reasonably reliable predictions about the threats to the species and the species' responses to those threats. We need not identify the foreseeable future in terms of a specific period of time. We will describe the foreseeable future on a case-by-case basis, using the best available data and taking into account considerations such as the species' life-history characteristics, threat-projection timeframes, and environmental variability. In other words, the foreseeable future is the period of time over which we can make reasonably reliable predictions. “Reliable” does not mean “certain”; it means sufficient to provide a reasonable degree of confidence in the prediction, in light of the conservation purposes of the Act.
                </P>
                <HD SOURCE="HD2">Analytical Framework</HD>
                <P>The SSA report documents the results of our comprehensive biological review of the best scientific and commercial data regarding the status of the species, including an assessment of the potential threats to the species. The SSA report does not represent our decision on whether the species should be listed as an endangered or threatened species under the Act. However, it does provide the scientific basis that informs our regulatory decisions, which involve the further application of standards within the Act and its implementing regulations and policies.</P>
                <P>To assess Florida Keys mole skink viability, we used the three conservation biology principles of resiliency, redundancy, and representation (Shaffer and Stein 2000, pp. 306-310). Briefly, resiliency is the ability of the species to withstand environmental and demographic stochasticity (for example, wet or dry, warm or cold years); redundancy is the ability of the species to withstand catastrophic events (for example, droughts, large pollution events), and representation is the ability of the species to adapt to both near-term and long-term changes in its physical and biological environment (for example, climate conditions, pathogens). In general, species viability will increase with increases in resiliency, redundancy, and representation (Smith et al. 2018, p. 306). Using these principles, we identified the species' ecological requirements for survival and reproduction at the individual, population, and species levels, and described the beneficial and risk factors influencing the species' viability.</P>
                <P>The SSA process can be categorized into three sequential stages. During the first stage, we evaluated the individual species' life-history needs. The next stage involved an assessment of the historical and current condition of the species' demographics and habitat characteristics, including an explanation of how the species arrived at its current condition. The final stage of the SSA involved making predictions about the species' responses to positive and negative environmental and anthropogenic influences. Throughout all of these stages, we used the best scientific and commercial data available to characterize viability as the ability of a species to sustain populations in the wild over time, which we then used to inform our regulatory decision.</P>
                <P>
                    The following is a summary of the key results and conclusions from the SSA report; the full SSA report can be found at Docket FWS-R4-ES-2022-0104 on 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <HD SOURCE="HD1">Summary of Biological Status and Threats</HD>
                <P>In this discussion, we review the biological condition of the species and its resources, and the threats that influence the species' current and future condition, in order to assess the species' overall viability and the risks to that viability.</P>
                <HD SOURCE="HD2">Species Needs</HD>
                <P>
                    The SSA report contains a detailed discussion of the Florida Keys mole skink individual and population requirements (Service 2024, pp. 10-22); we provide a summary here. Based upon the best available scientific and commercial information, and acknowledging existing ecological uncertainties, the resource and demographic needs for breeding, feeding, sheltering, and dispersal of the Florida Keys mole skink are characterized as:
                    <PRTPAGE P="45688"/>
                </P>
                <P>• Beach and dune, coastal berm, rockland hammock, and pine rockland habitats that provide ground cover in the form of leaf litter and wrack material that Florida Keys mole skinks need for nesting, arthropod and insect food sources, and cover;</P>
                <P>• Dry, loose, sandy, permeable, or friable (crumbly in texture) soils for digging of nest cavities and for their swimming movement;</P>
                <P>• Ground cover such as leaf litter, debris, or tidal wrack for thermoregulation, food sources, cover from predators, and breeding; and</P>
                <P>• Arthropod and insect food sources (found within the ground cover and wrack).</P>
                <P>Florida key mole skink abundance, distribution, and life history behaviors (nesting, breeding) are limited by the availability of these resources in the areas of beach and dune, coastal berm, rockland hammock, and pine rockland habitats. While ground cover and insect food sources appear sufficient and occur in adequate amounts, no ecological or quantitative studies have been completed on these factors.</P>
                <HD SOURCE="HD2">Threats</HD>
                <P>Sea level rise, more frequent tidal flooding (increase of tides above the mean high tide), and increasing intensity of storm events (such as hurricanes) are the predominant threats to the Florida Keys mole skink and its habitat. Other threats to the Florida Keys mole skink include habitat loss and degradation that result from development and habitat disturbance. We also evaluated existing regulatory mechanisms and ongoing conservation measures. In the SSA report, we considered additional threats: overutilization due to recreational, educational, and scientific use; disease; oil spills; saltwater intrusion; and nonnative species. We concluded that, as indicated by the best available scientific and commercial information, these additional threats are currently having little to no impact on the Florida Keys mole skink, and thus their overall effect now and into the future is expected to be minimal. For full descriptions of all threats and how they impact the Florida Keys mole skink, please see the SSA report (Service 2024, pp. 25-46).</P>
                <HD SOURCE="HD1">Effects of Sea Level Rise, High Tide Flooding, and Storm Events</HD>
                <P>The predominant threats currently affecting the Florida Keys mole skink and its habitat are sea level rise, more frequent high tide flooding, and increased intensity of storm events.</P>
                <P>Sea level rise—Within Florida, sea level rise is increasing at a faster rate than the global average, making this species especially vulnerable to impacts from sea level rise across its entire range (Carter et al. 2014, pp. 401-403; Park and Sweet 2015, entire; Sweet et al. 2017, p. 25, Sweet et al. 2022, p. 14). Global sea level has increased by 20 to 23 cm (8 to 9 in) since 1880, with approximately 8 cm (3 in) occurring in the last couple of decades (NOAA 2017, pp. 1-10). At Key West tidal gauge, the total average increase in sea level rise between 2000-2023 was approximately 15 cm (6 in) or approximately 0.25 cm per year (0.09 in per year) (NOAA 2019, unpaginated; Southeast Florida Regional Climate Change Compact 2023, p. 3). On Vaca Key, sea levels rose approximately 17 cm (7 in) between 1971 and 2018 or 0.14 in (0.36 cm) per year (NOAA 2019, unpaginated; Southeast Florida Regional Climate Change Compact 2023, p. 4). Globally, the average sea level rise is projected to be approximately 24 cm (9 in) by 2050, whereas in Florida the average sea level rise is projected to be approximately 41-46 cm (16-18 in) by 2050 (Sweet et al. 2022, pp. 20-21). Accelerated sea level rise in Florida is attributed to shifts in the Florida Current due to added ocean mass brought on by the melting Antarctic and Greenland ice packs and thermal expansion from warming oceans (Park and Sweet 2015, entire; Rahmstorf et al. 2015, entire; Deconto and Pollard 2016, p. 596; Sweet et al. 2022, p. 14).</P>
                <P>A majority of the Florida Keys are low-lying (average elevation less than 4.0 ft (1.2 m)) (Service 2020, p. 9), making them highly susceptible to flooding, and at risk of inundation and saltwater intrusion (Florida Department of Environmental Protection (FDEP) 2012, p. 12; U.S. Geological Survey (USGS) 2017, n.p.). Because the Florida Keys mole skink inhabits low-lying islands, the species is especially vulnerable to sea level rise across its entire range.</P>
                <P>As a result of sea level rise, higher tidal surges, coastal and inland flooding, and saltwater intrusion further degrade and remove habitat (Carter et al. 2014, pp. 398-400, 403; Wadlow 2016, entire). Across the Florida Keys, the impacts of sea level rise (to date) have resulted in erosion and loss of beach habitats (Southeast Florida Regional Climate Change Compact 2019, pp. 5, 34-35). Additionally, as a result of sea level rise and salt-water intrusion, a decline in pine trees and pine forest ecosystems has been documented throughout the Florida Keys (Ross et al. 1994, entire).</P>
                <P>High Tide Flooding—One of the most noticeable impacts from sea level rise is the increased frequency of high tide flooding (Sweet et al. 2022, pp. 28-42). High tide flooding events have increased over the past several decades and are projected to continue to increase (Sweet et al. 2021, entire). High tide flooding data at Key West from 1965-1974 was approximately 5 flood days, from 1995-2004 was approximately 20 flood days, and from 2005-2014 was approximately 25-30 coastal flood days (NOAA 2017, p. 50). High tide flooding begins when coastal water levels exceed the mean higher high-water level (increase of tides above the mean high tide) (Sweet et al. 2014, entire). Florida Keys mole skinks require dry, sandy soils for all their life history needs. Thus, when frequent flooding above the high tide line occurs, flooded areas become unusable to the Florida Keys mole skink. In flooded areas, skinks cannot easily move through wet sand and individuals or nests may be washed away. When high tide flooding and storm surge flooding occurs frequently, habitat could be highly degraded or eliminated prior to sea level rise inundation. Even infrequent high tide or surge flooding will cause Florida Keys mole skink habitat to experience vegetation shifts triggered by hydrological changes to a wetter environment, higher salinity levels, and beach erosion and salinization of soils (Saha et al. 2011a, pp. 181-182; Saha et al. 2011b, pp. 82-84; Sweet et al. 2020, pp. 1-4). Thus, high tide flooding is likely to result in continued loss of habitat, displacement of individuals landward, and loss of individuals due to drowning.</P>
                <P>
                    Storm Events—Habitat for the Florida Keys mole skink can be degraded or removed by extreme storm events such as hurricanes, storm surges, and floods. Although storms and hurricanes are part of this tropical island system, storms and hurricane activity have been above normal since the Atlantic Multi-Decadal Oscillation (the natural variability of the sea surface temperature in the Atlantic Ocean) went into its warm phase around 1992 (NOAA 2019, p. 1). Currently, while the incidence of tropical storms in southeast Florida (including the Florida Keys) is above normal, this frequency is expected to decrease over time, but the intensity of storms is expected to increase (Service 2017, p. 7; NOAA 2024b, entire). The increased intensity could result in larger tidal storm surges, flood events, and greater destruction than historically documented (Service 2017, p. 7). Higher intensity storms can kill skinks directly and destroy habitat and thereby reduce population 
                    <PRTPAGE P="45689"/>
                    resiliency and overall species' redundancy.
                </P>
                <P>Long-term monitoring of the Florida Keys mole skink species and information on strong storm impacts to this species are lacking. However, information does exist on the impacts to habitat from hurricanes and other strong storms that have occurred in the region that can provide insight to the potential damage and loss of Florida Keys mole skink habitat. Storm events can disturb and reduce the quantity and quality of Florida Keys mole skink resources (food, cover, nesting beach) and may do so significantly depending upon the severity and proximity of the storm center. This is particularly the case of storm surges which bring in nutrient-rich sediment that exacerbate soil accretion, deposit salt, and damage vegetation (Dingler al. 1995, p. 296; Jackson et al. 1995, p. 321; Enge et al. 2017).</P>
                <P>In the last several decades, hurricanes and other strong storms have occurred throughout the Florida Keys and have negatively impacted Florida Keys mole skink habitat. For example, in 2005, Hurricane Wilma (Category 3) passed just north of the Florida Keys causing maximum storm tides 5.0 ft to 6.0 ft (1.5 m to 1.8 m) above mean sea level in Key West and flooding in approximately 60 percent of the city, causing severe beach erosion (Kasper 2007, p. 6; FDEP 2025, pp. 46-47). On Boca Chica and Big Pine Key, Hurricane Wilma caused a storm surge of 5.0 ft to 8.0 ft (1.5 m to 2.4 m) (Kasper 2007, p. 9) and resulted in significant erosion to beach habitat on those islands (FDEP 2025, p. 46). In September of 2017, Hurricane Irma (Category 4) caused a storm surge of up to 7.8 ft (2.4 m) in the Lower Keys and Middle Keys (NOAA 2018, pp. 3-4). Hurricane Irma altered whole dune ecosystems, removing sand, vegetation, and litter from these areas via wind and storm surge forces and uprooting many of the maritime hammock ecosystems (Emerick 2017b, p. 6). As a result of Hurricane Irma, beach habitat on Big Pine Key, Boca Chica, and Key West, islands where Florida Keys mole skink have been documented, are considered to be critically eroded (FDEP 2025, pp. 46-47). After Hurricane Irma, Florida Keys mole skink surveys found low numbers of skinks on Sawyer Key in 2018, Content Key in 2020, Big Pine Key in 2018, and Long Key in 2018 (Zambrano 2021, pers. comm.). However, long-term survey efforts were not in place prior to Hurricane Irma, and we are not able to determine trends or how skinks may have been directly impacted by this hurricane.</P>
                <P>Additionally, Ohio Key experienced significant impacts from both Hurricane Wilma and Hurricane Irma and was surveyed between 2015 and 2017 for Florida Keys mole skinks. Despite available high-quality suitable habitat and numerous searches, no Florida Keys mole skinks were located (Emerick 2017b, pers. comm.). We do not know if Ohio Key had Florida Keys mole skinks prior to Hurricane Wilma or Hurricane Irma; it is possible that although the island contains suitable habitat, Florida Keys mole skinks were never present on the island.</P>
                <P>In summary, these collective impacts have reduced the survival of the Florida Keys mole skink at the individual, population, and species level. Sea level rise is degrading existing habitat that supports the Florida Keys mole skink, reducing the habitat features that the species needs, and thus reducing population resiliency. Increased high tide flooding and increased intensity of storm events have further degraded Florida Keys mole skink habitat. Increased high tide flooding and storm events also have the potential to kill skinks directly or to reduce individual survival, which could result in reduced resiliency and redundancy. An increase in the intensity of storms or a direct hit from a strong hurricane could reduce species abundance (reducing population resiliency), and potentially extirpate populations (limiting redundancy), making the Florida Keys mole skink more vulnerable to all other threats. There are no regulatory mechanisms or conservation measures that address the impacts of sea level rise, high tide flooding, or increased intensity of storm events on the Florida Keys mole skink.</P>
                <HD SOURCE="HD3">Development</HD>
                <P>Within the Florida Keys, human population growth and development has occurred at a high rate and much of the land available for development has been developed (Zwick and Carr 2006, p. 15; Carr and Zwick 2016, entire). The April 2020 human population census of Monroe County, Florida, was 82,874 individuals (U.S. Census Bureau 2021, n.p.), which is already higher than the 2060 population estimate of 77,038 individuals (Carr and Zwick 2016, p. 28). An assessment of the Florida Keys assumed that the size of the human population is directly related to remaining land area (Hoegh-Guldberg 2010, p. 14). Consequently, as land area is further reduced due to coastal flooding, erosion, and sea level rise, the human population in the Florida Keys is expected to decline in order to accommodate the loss of land and consequential negative effects on property values and the economy (Zhang et al. 2011, pp. 9-17; Hino et al. 2017, entire).</P>
                <P>The Florida Keys were designated as an Area of Critical State Concern in 1974 by the Florida Legislature (§ 380.0552 Florida Statutes) and local ordinances have been adopted to control development growth based on the Florida Keys' carrying capacity related to hurricane evacuation clearance time and to protect the natural environment (FDEO 2020, p. 1). A rate of growth ordinance has been adopted by Monroe County (MC-LDC Chapter 138), and building permit allocation system ordinances have been adopted by the municipalities within the Florida Keys: City of Key West (KW-Code of Ordinances Ch. 108, Art. X), Village of Islamorada (Islamorada-Code of Ordinances Chapter 30, Art. IV, Div. 11), and City of Marathon (CM-LDC Chapter 107, Art. 1). These ordinances were adopted in order to provide for the safety of residents in the event of a hurricane evacuation, to protect the significant natural resources, and to acquire environmentally sensitive lands as guided by the State of Florida's Area of Critical State Concern designation. These ordinances guide new development toward areas with infrastructure and away from flood zones and environmentally sensitive areas such as habitat for threatened or endangered species. It is projected that carrying capacity will be reached in 2023 within the municipalities (FDEO 2020, p. 4) and 2026 in the unincorporated Monroe County (MCCPLA 2020, p. 8) and at such a time new building permits will no longer be issued as dictated by the State of Florida's Area of Critical State Concern designation.</P>
                <P>In addition to direct impacts from loss of habitat, disturbance to these habitats can reduce groundcover that provides shelter and supports food resources. Additionally, loss of habitat connectivity can impact the Florida Keys mole skink's ability to find mates and disperse to new locations. Roads and humanmade structures fragment habitat and Florida Keys mole skink populations, leading to a reduction in population health (resiliency) and genetic differentiation (representation) (Jochimsen et al. 2004, p. 40). Although past development activities have reduced Florida Keys mole skink habitat, individual skinks show some tolerance to habitat alteration and have been documented in developed areas (Mays and Enge 2016, p. 10; Emerick 2017a, pers. comm.).</P>
                <P>
                    The effects of development have the potential to continue to reduce habitat 
                    <PRTPAGE P="45690"/>
                    and individual survival of Florida Keys mole skinks and, therefore, may result in a decline in population resiliency. Resiliency may be further reduced due to loss of habitat connectivity and declining dispersal of individuals within populations as habitat becomes fragmented.
                </P>
                <HD SOURCE="HD3">Habitat Disturbance From Recreational Activities</HD>
                <P>The Florida Keys are well known for outdoor recreational activities, particularly waterfront and beachfront activities, which directly overlap with the habitats used by Florida Keys mole skinks. Hiking, camping, beach combing, and other activities in beach and dune, coastal berm, rockland hammock, and pine rockland habitats can cause direct disturbances to behavior and habitat of the Florida Keys mole skink. Beach cleaning directly removes wrack and vegetative material that act as shelter and a food resource for the Florida Keys mole skink. The behaviors (feeding, movement, and nesting) of individual skinks are likely disturbed by these recreational activities.</P>
                <P>Increased road traffic is a direct consequence of visitors and tourists as is the need for parking. Off-road parking sites, gravel lots, and boat trailer parking can disturb the dry soils and other areas used by Florida Keys mole skinks. Smaller off-road vehicles and golf carts are also sometimes used in communities to get around locally. These small vehicles use non-paved areas that can displace, disturb, or cause direct mortality of individual skinks.</P>
                <HD SOURCE="HD3">Summary of Threats</HD>
                <P>The primary threats impacting the Florida Keys mole skink and its habitat are sea level rise, increased high tide flooding, and increased intensity of storm events. The effects of sea level rise, increased high tide flooding, and an increased intensity of storm events can degrade existing habitat that supports the Florida Keys mole skink, leading to reductions in habitat that the species needs, and thus to population resiliency. Individual skinks could also be lost during high tide floods or strong storms. Ongoing habitat degradation and loss associated with development and recreational activities will also continue to reduce available habitat for the Florida Keys mole skink, thus decreasing population resiliency.</P>
                <P>Even minor threats that impact just a few individuals in a population need to be considered for their additive effects. For example, threats such as collection, disease, pesticides, oil spills, nonnative species, and saltwater intrusion may have low impacts on their own, but combined with impacts of other threats, they could further reduce the relatively low numbers of Florida Keys mole skinks. These minor threats (collection, disease, pesticides, oil spills, nonnative species, and saltwater intrusion) were considered cumulatively for their effects to the Florida Keys mole skink, and, while they may impact individuals, we currently do not consider these minor threats to have negative effects at the population level (Service 2024, pp. 39-45).</P>
                <P>
                    The severity of threats may also be exacerbated by the Florida Keys mole skink's limited distribution and low numbers on most islands. Currently, the existing regulatory mechanisms do not address the threats to the Florida Keys mole skink from sea level rise, high tide flooding, and increased intensity of storm events. However, regulatory mechanisms that address development provide some protections, and conservation lands that overlap with some Florida Keys mole skink habitat provide a conservation benefit to the species (see 
                    <E T="03">Conservation Efforts and Regulatory Mechanisms).</E>
                </P>
                <HD SOURCE="HD2">Conservation Efforts and Regulatory Mechanisms</HD>
                <HD SOURCE="HD3">State Protections</HD>
                <P>The Florida Keys mole skink species was State listed as threatened by Florida in 1974 but was changed to a State of Florida species of concern in 1978. In 2010, after a species status review by the Florida Fish and Wildlife Conservation Commission (FWC), the Florida Keys mole skink was again found warranted for listing as a State threatened species. A Florida Keys Mole Skink State Action Plan was developed in 2013 (FWC 2013, entire). The goal of the plan is to secure the Florida Keys mole skink within its historical range (FWC 2013, pp. 8-19).</P>
                <P>
                    As a threatened species under State law, intentional take and some forms of incidental take of the Florida Keys mole skink are prohibited. The FWC lists several measures to avoid and minimize take during development and habitat management activities, including avoiding and minimizing impacts to coastal strand, coastal dune, pine rockland, and tropical hardwood hammock habitats within the range of the Florida Keys mole skink (FWC 2016, p. 5). Specifically, these measures recommend avoiding the removal of microhabitat features and the prevention of activities that cause soil compaction. Some of these land management activities may be beneficial (
                    <E T="03">e.g.,</E>
                     beach habitat restoration activities) to the long-term quality of the natural habitats for the Florida Keys mole skink but can also result in local disturbance or direct mortality of individual skinks.
                </P>
                <P>The Florida Coastal Management Plan designates the Florida Keys as an Area of Critical Concern (FDEP 2014, p. 25). Through the Florida Forever program (and the previous State of Florida Conservation and Recreation Lands and Preservation 2000 Programs), the Monroe County Land Authority and the State of Florida have purchased 12,862 acres (ac) (5,205 hectares (ha)) of Florida Keys land for the protection of natural resources (Florida Department of Economic Opportunity 2020, p. 1, and FDEP 2020, pp. 199, 289). The protection of these lands overlaps with occurrences of Florida Keys mole skinks, primarily on Big Pine Key and No Name Key and provide direct and indirect conservation benefits for the Florida Keys mole skink.</P>
                <P>Several local government plans provide indirect conservation benefits to the species. The Village of Islamorada, the City of Marathon, Monroe County, and the City of Key West have comprehensive plans that incorporate native habitat and species protections (City of Marathon 2013, entire; City of Key West, 2013, entire; Monroe County 2016a, entire; Village of Islamorada 2017, entire). Although they do not mention the Florida Keys mole skink specifically these protections can benefit the Florida Keys mole skink indirectly by protecting habitats that skinks use and protecting other species that co-occur with Florida Keys mole skink.</P>
                <P>The Florida Keys mole skink occurs within numerous State Parks, including Zachary Taylor State Park (Key West), the Florida Keys Overseas Heritage Trail (Key West, Big Pine Key, Vaca Key, Long Key, Lower Matecumbe Key, Key Largo), Bahia Honda State Park (Bahia Honda Key), Long Key State Park (Long Key), Lignumvitae Key Botanical State Park (Lower Matecumbe Key), John Pennekamp Coral Reef State Park (Key Largo), and Dagny Johnson Key Largo Hammock Botanical State Park (Key Largo). Active management of these State Parks provides indirect benefits to the Florida Keys mole skink by protecting and providing habitat through management of beach restoration and nourishment and providing nonnative plant and animal control.</P>
                <HD SOURCE="HD3">National Wildlife Refuges and National Park Service Lands</HD>
                <P>
                    The Florida Keys mole skink occurs within multiple National Wildlife Refuges including the National Key Deer Refuge on Content Key and Big Pine 
                    <PRTPAGE P="45691"/>
                    Key, the Key West National Wildlife Refuge on Marquesas Key and Boca Grande Key, the Crocodile Lake National Wildlife Refuge on Key Largo, and the Great White Heron National Wildlife Refuge on Sawyer Key and Content Key. The Florida Keys mole skink also occurs within Dry Tortugas National Park on Loggerhead Key in the Dry Tortugas. Specific management or conservation objectives for the Florida Keys mole skink are not identified in the management plans for these National Wildlife Refuges and National Park Service lands; however, ongoing management activities including habitat restoration and nonnative species control provide benefits to the Florida Keys mole skink and its habitat.
                </P>
                <HD SOURCE="HD3">Department of Defense Integrated Natural Resources Management Plans</HD>
                <P>The Sikes Act Improvement Act (1997) led to Department of Defense (DoD) guidance regarding development of Integrated Natural Resources Management Plans (INRMPs) for promoting environmental conservation on military installations. There are occurrence records of Florida Keys mole skinks on lands owned and managed by the DoD as part of the Naval Air Station Key West, on Boca Chica and Key West. The Naval Air Station Key West has a current and completed INRMP, covering land owned by the DoD on Boca Chica Key and Key West (Department of the Navy 2020). Although the Florida Keys mole skink is not specifically mentioned, the INRMP provides conservation and habitat management measures applicable to the species, such as preventative measures to reduce damage caused by flooding and maintenance and expansion of living shorelines.</P>
                <HD SOURCE="HD2">Cumulative Effects</HD>
                <P>We note that, by using the SSA framework to guide our analysis of the scientific information documented in the SSA report, we have analyzed the cumulative effects of identified threats and conservation actions on the species. To assess the current and future condition of the species, we evaluate the effects of all the relevant factors that may be influencing the species, including threats and conservation efforts. Because the SSA framework considers not just the presence of the factors, but to what degree they collectively influence risk to the entire species, our assessment integrates the cumulative effects of the factors and replaces a standalone cumulative effects analysis.</P>
                <HD SOURCE="HD2">Current Condition</HD>
                <P>For the purposes of this assessment, we divided the Florida Keys into four geographically representative units: the Upper Keys, Middle Keys, Lower Keys, and Distal Sand Keys. The average elevation for the Upper Keys is 4.8 ft (1.5 m); for the Middle Keys, is 4.29 ft (1.3 m); and for the Lower Keys, is 3.17 ft (1.0 m) (Monroe County 2022b, p. 1). The Distal Sand Keys are low-lying (average less than 4.0 ft (1.2 m)) sand islands and mangrove islands with the exception of Loggerhead Key, which has a peak elevation of 10.0 ft (3.0 m) (Monroe County 2022b, p. 1). Range-wide, the majority of islands within the Florida Keys are low-lying with an average elevation less than 4.0 ft (1.2 m) (Service 2020, p. 9). We note that the Upper Keys island of Key Largo has an average elevation of 7.0 ft (2.1 m), and the ridge forming the spine of the island peaks at 15.0 ft (4.6 m) and is 33 mi (53 km) long.</P>
                <P>The current condition of the Florida Keys mole skink is described in terms of population resiliency, redundancy, and representation across the species. The analysis of these conservation principles to understand the species' current viability is described in more detail in the Florida Keys mole skink SSA report (Service 2024, pp. 46-54). </P>
                <HD SOURCE="HD3">Current Resiliency</HD>
                <P>Islands contain genetically distinct lineages of the Florida Keys mole skink species (Mercier 2018, pp. 18-21). Thus, to assess the species' resiliency, we delineated populations of Florida Keys mole skink by islands, where all detections on the same island represent a population (or groups of interbreeding individuals). We considered Key Largo to represent two different populations, based on the length of the island and distance between detection locations (greater than 4 mi (6.4 km)) that are separated by U.S. Route 1 highway (which acts as a barrier to dispersal). Therefore, for our assessment of population resiliency, we considered everything north of U.S. Route 1 as the North Key Largo population and everything south of U.S. Route 1 as the Key Largo population.</P>
                <P>Due to the semi-fossorial and cryptic nature of the Florida Keys mole skink, abundance data are lacking, and no population trend data exist for this species. There are also no data available regarding the population structure of the Florida Keys mole skink. Therefore, we assessed resiliency based on the number of individuals detected on an island (multiple individuals indicate a larger population), and the number of locations within an area (greater than 328 ft (100 m) apart) where individual Florida Keys mole skinks were observed (table 1). We chose the 328-ft (100-m) distance based on the estimated dispersal distance of individuals within other skink species populations (Gianopulos 2001, p. 81; Mushinsky et al. 2001, p. 54; McCoy et al. 2020, p. 8; table 1).</P>
                <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s50,r50,r50">
                    <TTITLE>Table 1—Metrics Used for Population Resiliency Classifications for the Florida Keys Mole Skink</TTITLE>
                    <TDESC>[For current populations, the number of individuals detected and the number of locations (&gt;100 meters apart) factor into whether the population is considered to have a low, moderate, high, or very high current resiliency.]</TDESC>
                    <BOXHD>
                        <CHED H="1">Number of individuals detected</CHED>
                        <CHED H="1">
                            Locations
                            <LI>(&gt;100 meters apart)</LI>
                        </CHED>
                        <CHED H="1">Resiliency</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>1</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">&gt;1 and ≤10</ENT>
                        <ENT>1 or &gt;1</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">&gt;10</ENT>
                        <ENT>1</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">&gt;10</ENT>
                        <ENT>&gt;1</ENT>
                        <ENT>High.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">&gt;50</ENT>
                        <ENT>&gt;1</ENT>
                        <ENT>Very high.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Florida Keys mole skinks have been documented on 23 islands throughout the Florida Keys. Four populations are considered historical (no detections since 1970), four are considered relatively recent (skinks were detected between 1970 and 1999), and 15 are considered current (skinks were detected between 2000 and 2021) (Service 2024, pp. 16-20). Of the four historical populations none of the islands have been resurveyed for skinks 
                    <PRTPAGE P="45692"/>
                    since 1970. Of the four relatively recent populations, only one island (Scout Key) has been surveyed since 1999, and no skinks were found during those surveys (surveys were conducted between 2016 and 2017). For our current resiliency analysis, we include only populations that have had skink detections since 2000 and refer to these populations as current populations. In the SSA, we provide more detailed information about the islands that have historical and relatively recent populations (Service 2024, entire).
                </P>
                <P>Of the 15 current populations, 2 are in the Upper Keys, 3 are in the Middle Keys, 8 are in the Lower Keys, and 2 are in the Distal Sand Keys (table 2). Based on the parameters outlined above (table 1), one current population is considered to have very high resiliency, and two current populations are considered to have high resiliency. Six current populations are determined to be moderately resilient, and six current populations are considered to have low resiliency (Service 2024, p. 50; table 2). Since 2000, 205 individual Florida Keys mole skinks have been detected across these 15 islands (Service 2024, p. 17). Big Pine Key in the Lower Keys has the majority of the skink detections (144 Florida Keys mole skinks, or 70 percent of all skinks documented since 2000; Service 2024, p. 17).</P>
                <HD SOURCE="HD3">Habitat Impacts</HD>
                <P>To date, sea level rise has resulted in the direct loss of habitat, as beaches have become inundated for long periods of time, resulting in erosion and loss of beach habitat. Repeated high tide flooding has resulted in additional loss of habitat as frequently flooded areas become unusable to the Florida Keys mole skink (individuals cannot easily move through wet sand; individuals or nests are washed away). While our SSA predicts the impacts of sea level rise out to 2100 (Service 2024 pp. 56-65, appendix D and E), the majority of impacts are projected to be realized by the species in the near-term (by 2040). Accordingly, given the magnitude and immediacy of the impacts of sea level rise on the Florida Keys mole skink and its habitat, we evaluate current and near-term impacts as part of our current condition assessment.</P>
                <P>To understand the near-term impacts (prior to 2040) from sea level rise, we considered our updated evaluation of (Service 2024, appendix E) modeled projections of sea level rise (Sweet et al. 2022, pp. 6-27) and high tide flooding (Sweet et al. 2022, pp. 28-31). We used a suite of scenarios that describe the bounds of a range of plausible near-term and future conditions (intermediate, intermediate-high, and high), which are aligned with emissions-based, conditional probabilistic and global model projections of mean sea level rise (Sweet et al. 2022, p. 27). We used the nearest local scenarios for specific sea level rise height values within the Florida Keys. Near-term and future sea level rise projections account for normal high tides (mean high tide for a given local station) (NOAA 2017, entire; Sweet et al. 2022, entire). In addition to normal high tides, minor, moderate, and major flood events are also projected to increase in the near-term (Sweet et al. 2022, p. xiii). Minor high tide flooding is defined as more disruptive than damaging and currently can be expected about 2 days per year (Sweet et al. 2018, p. 11). Minor high tide flooding is likely to increase to 7 to 15 days per year by 2030, and to 25 to 75 days per year by 2050, (Sweet et al. 2017, p. 37; Sweet et al. 2021, pp. v-vi). To account for flooding events in the near-term, we included minor and moderate high tide flooding threshold values from local gauges in the Florida Keys. Detailed descriptions of sea level rise and high tide flooding data are available in the SSA report (Service 2024, pp. 25-26, 31-32, 56-58; appendices D and E).</P>
                <P>Areas that have frequently occurring high tide flooding events to have negative impacts on Florida Keys mole skink habitat. Repeated high tide flooding events are likely to degrade habitat (by moving the wrack line, rendering habitat unsuitable until waters recede) even before sea level is high enough to inundate habitat. Repeated habitat disturbance by high tide flooding reduces the chance for an area to become repopulated by skinks following disturbance.</P>
                <P>To assess the amount of Florida Keys mole skink habitat that would be lost or degraded due to sea level rise and high tide flooding by year 2040, we evaluated the total potential habitat for each island with a current population. In the SSA report, we also provide total potential habitat estimates for relatively recent and historical populations (Service 2024, pp. 58-60). Because Florida Keys mole skinks have been documented in habitats away from the beach, we calculated total potential habitat as the entire island area subtracting areas not considered to be suitable habitat for Florida Keys mole skink, including freshwater, water, and impervious cover areas (Monroe County 2016b, entire). For each foot of sea level rise and high tide flooding threshold, we calculated the percent area that would be inundated or degraded for each island with a current, recent, or historical population. We provide detailed descriptions of our methods and results in the SSA report, and we also provide calculations for some islands with data available for preferred habitats (including beach berm, coastal hammock, and preferred soils) (Monroe County 2016b, entire; Service 2024, pp. 62-63; appendices D and E).</P>
                <P>Within the near term (by 2040 or sooner), sea level rise and the effects of high tide flooding are projected to be between 1.0 ft and 1.67 ft, respectively (0.3 m and 0.5 m) above the current mean high-water line. Even under the lowest sea level rise scenario (1.0 ft (0.3 m)), 9 of the 15 current populations are projected to lose 50 to 90 percent of habitat, and two populations are projected to be extirpated (table 2). The greatest impacts from sea level rise are projected within the Lower Keys, where more than 70 percent of the current populations are found and where all highly resilient populations currently occur (table 2). When considering the effects of sea level rise by 2040, along with the current and near-term impacts of inundation prior to complete habitat loss from sea level rise, we expect the resiliency for all populations to decline.</P>
                <P>Table 2, below, provides a summary of the projected magnitude of change in resiliency for populations of the Florida Keys mole skink for sea level rise and high tide flooding scenarios in the year 2040. In the “Year 2040” column, we use symbols as follows:</P>
                <P>• ↓ means a slight decrease in population resiliency (more than 10 percent but less than or equal to 50 percent);</P>
                <P>• ↓↓ means a moderate decrease in population resiliency (more than 50 percent but less than or equal to 75 percent);</P>
                <P>• ↓↓↓ means a large decrease in population resiliency (more than 75 percent but less than or equal to 90 percent); and</P>
                <P>• X means extirpated, based on more than 90 percent of the potential habitat being impacted.</P>
                <BILCOD>BILLING CODE 4333-15-P</BILCOD>
                <GPH SPAN="3" DEEP="441">
                    <PRTPAGE P="45693"/>
                    <GID>ER21JY26.004</GID>
                </GPH>
                <BILCOD>BILLING CODE 4333-15-C</BILCOD>
                <HD SOURCE="HD3">Current Redundancy</HD>
                <P>Redundancy is the ability of a species to withstand catastrophic events. In the Florida Keys, tropical storms and hurricanes are regular and common events. However, catastrophic events may include particularly strong or intense hurricanes or storms and the resulting winds, waves, and storm surges associated with these events. Increased frequency of such storms could further reduce the ability of Florida Keys mole skink populations to recover and could cause catastrophic impact to the species.</P>
                <P>For the Florida Keys mole skink to withstand catastrophic events such as hurricanes, it needs to have multiple, sufficiently resilient populations across its range. Of the 15 currently known populations of Florida Keys mole skink, one population is considered to have very high resiliency, two populations are considered to have high resiliency, and all three of these populations are found on islands in the Lower Keys (table 2). Furthermore, 70 percent of all current detections (144 of 205 skink detections since 2000) occur on Big Pine Key where the majority of the detections have been found at low elevation (Service 2024, pp. 67-69). By 2040, with just sea level rise impacts alone (1.0 ft (0.3 m) of sea level rise), one moderate-resiliency population and one high-resiliency population are projected to be extirpated in the Lower Keys. With the added impacts of high tide flooding (1.67 ft (0.5 m) of sea level rise), two more populations are projected to be extirpated, one moderate-resiliency population in the Middle Keys and one low-resiliency population in the Distal Sand Keys (table 2). In addition, when considering the near-term impacts of inundation occurring and reducing the available habitat for the species prior to complete habitat loss, this species is at high risk from impacts prior to 2040.</P>
                <P>
                    Because the Florida Keys mole skink is endemic to the Florida Keys, losing even a few populations (or reduced resiliency in even a few populations) would result in a significant reduction in redundancy. With the projected continued loss of habitat by 2040, especially in the Lower Keys where the majority of current populations are located, and where all high resiliency populations are located, redundancy for the species is expected to be severely reduced. Although a severe hurricane is unlikely to inundate all populations at once, if a hurricane were to extirpate 
                    <PRTPAGE P="45694"/>
                    some populations, especially those with lower numbers of skinks, the remaining populations of Florida Keys mole skink would be more vulnerable to other threats. With the continued loss or degradation of Florida Keys mole skink habitat, we expect loss of island populations, thereby further reducing the species' ability to withstand catastrophic events such as hurricanes.
                </P>
                <P>Given the current impacts of sea level rise, high tide flooding, and hurricanes, and given the limited available habitat, the relatively low number of individuals documented, and the potential for repeated catastrophic storm events, the overall redundancy of the Florida Keys mole skink is considered low.</P>
                <HD SOURCE="HD3">Current Representation</HD>
                <P>Representation describes the ability of a species to adapt to changing environmental conditions and is measured by the breadth of genetic or environmental diversity within and among populations. Overall, the genetic and environmental diversity of the Florida Keys mole skink is low, with no sign of morphological or behavioral differences between skinks on different islands (Branch et al. 2003, pp. 202-205; Technical Team Working Group 2016, pers. comm.; Mercier 2017, pers. comm.).</P>
                <P>The species occurs on several islands across a narrow geographic and ecological range; there is little variation in habitat types across distance or elevation as occurs in wider ranging and more abundant species. The entire species is represented within the same tropical system. The amount of coastal sandy substrate and hammock habitat is limited and distributed in patches throughout the Florida Keys. Furthermore, island to island dispersal is considered rare and likely occurs as a result of stochastic events (storms, hurricanes, flooding) where individuals may be passively carried by floating debris and seaweed wrack to new locations (Adler et al. 1995, pp. 535-537; Branch et al. p. 2003 p. 207; Losos and Ricklefs 2010, p. 360). Within the narrow ecological range in which the Florida Keys mole skink occurs, there are some differences in the substrates and habitat types available, specifically between the Upper Keys and Lower Keys regions, but overall representation of the Florida Keys mole skink is considered to be relatively low.</P>
                <HD SOURCE="HD2">Future Condition</HD>
                <P>
                    As part of the SSA, we developed sea level rise and high tide flooding future condition scenarios projected out until the year 2100. Our scenarios included intermediate, intermediate-high, and high scenarios, which are aligned with emissions-based, conditional probabilistic and global model projections of global mean sea level rise (Service 2024, p. 42). Because we determined that the current condition of the Florida Keys mole skink is consistent with an endangered species (see Determination of Florida Keys Mole Skink's Status, below), we are not presenting the detailed results of the future scenarios in this final rule and only present future projection results to 2040 (See 
                    <E T="03">Current Condition</E>
                     section above). Please refer to the SSA report (Service 2024, pp. 41-50, appendix E) for the full analysis of future scenarios.
                </P>
                <HD SOURCE="HD1">Determination of Florida Keys Mole Skink's Status</HD>
                <P>Section 4 of the Act (16 U.S.C. 1533) and its implementing regulations (50 CFR part 424) set forth the procedures for determining whether a species meets the definition of an endangered species or a threatened species. The Act defines an “endangered species” as a species in danger of extinction throughout all or a significant portion of its range, and a “threatened species” as a species likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range. The Act requires that we determine whether a species meets the definition of endangered species or threatened species because of any of the following factors: (A) The present or threatened destruction, modification, or curtailment of its habitat or range; (B) Overutilization for commercial, recreational, scientific, or educational purposes; (C) Disease or predation; (D) The inadequacy of existing regulatory mechanisms; or (E) Other natural or manmade factors affecting its continued existence.</P>
                <HD SOURCE="HD2">Status Throughout All of Its Range</HD>
                <P>After evaluating threats to the species and assessing the cumulative effect of the threats under the Act's section 4(a)(1) factors, we found that impacts from sea level rise, high tide flooding, and storm events present the most substantial threat to the Florida Keys mole skink's viability. Sea level rise and repeated high tide flooding have resulted in the direct loss of habitat. Over the last several decades, hurricanes have had a significant impact on Florida Keys mole skink habitat causing erosion and loss of beach habitat. Given the historical and current impacts from sea level rise, high tide flooding, and storm events, habitat for the Florida Keys mole skink is limited. Threats associated with sea level rise, high tide flooding, and storm events are already being observed in the Florida Keys, and these threats will continue to increase in magnitude. Further, before the effects of complete habitat loss from inundation due to sea level rise are fully realized, higher water levels and flooding will create wetted sand environments, which are unsuitable for the Florida Keys mole skink.</P>
                <P>Since 2000, only 205 skinks have been documented on 15 islands; 70 percent of individuals have been documented on Big Pine Key in the Lower Keys. We assessed the current population resiliency of Florida Keys mole skink using a comparative assessment of detections. We assessed that one population has very high resiliency, two populations have high resiliency, six populations have moderate resiliency, and six populations have low resiliency. However, ongoing and near-term impacts from sea level rise were not accounted for in this comparative assessment of population resiliency. Given the magnitude and immediacy (including the ongoing nature) of these threats, we determined the species is more susceptible and at high risk from sea level rise, given the ongoing sea level rise, inundation, and loss of habitat in the near term (prior to 2040). As mentioned previously, the species will experience impacts from inundation, even if temporary, prior to complete habitat loss from sea level rise. In addition, populations in the Lower Keys, specifically Big Pine Key, although assessed to have higher resiliency based on detections since 2000, are at higher risk from inundation and loss of habitat given the low elevation of the islands. Further, more frequent and intense high tide flooding and storm events will accelerate habitat loss, may kill individual skinks, and will reduce overall population resiliency and species redundancy and representation. Acting together, these threats will continue to cause irreversible habitat degradation and loss.</P>
                <P>
                    Due to its narrow endemic range, the species has inherently low redundancy (historically and currently). Surveys have documented low numbers of individuals across its range. Despite some redundancy provided by the fact that discrete populations exist on multiple islands, large-scale impacts from catastrophic events (
                    <E T="03">e.g.,</E>
                     hurricanes or storm surges) could affect the entire Florida Keys archipelago, leaving the entire species vulnerable to the timing and intensity of impacts. Similarly, this species occurs across a narrow geographic and ecological range; there is little variation in habitat types 
                    <PRTPAGE P="45695"/>
                    across distance or elevation as occurs in wider ranging and more abundant species. Thus, representation for this species is thought to be inherently low.
                </P>
                <P>Because of the Florida Keys mole skink's low redundancy and limited representation, the species is vulnerable to catastrophic storm events. Although a severe hurricane is unlikely to inundate all populations at once, if a hurricane were to extirpate some populations, especially those with lower numbers of skinks, the remaining populations of Florida Keys mole skink would be more vulnerable to other threats. We also considered the effects of development, habitat disturbance, and minor threats including overutilization due to recreational, educational, and scientific use, disease, oil spills, saltwater intrusion, and nonnative species for their cumulative effects. Given that the Florida Keys mole skink is experiencing impacts from these threats currently and its resiliency, redundancy, and representation are projected to continue to decline in the near-term, we find that a threatened species status throughout all of its range is not appropriate. Thus, after assessing the best available information, we conclude that the Florida Keys mole skink is in danger of extinction throughout all of its range.</P>
                <HD SOURCE="HD2">Status Throughout a Significant Portion of Its Range</HD>
                <P>
                    Under the Act and our implementing regulations, a species may warrant listing if it is in danger of extinction or likely to become so in the foreseeable future throughout all or a significant portion of its range. We have determined that the Florida Keys mole skink is in danger of extinction throughout all of its range and accordingly did not undertake an analysis of any significant portions of its range. Because the Florida Keys mole skink warrants listing as endangered throughout all of its range, our determination does not conflict with the decision in 
                    <E T="03">Center for Biological Diversity</E>
                     v. 
                    <E T="03">Everson,</E>
                     435 F. Supp. 3d 69 (D.D.C. 2020), because that decision related to significant portion of the range analyses for species that warrant listing as threatened, not endangered, throughout all of their range.
                </P>
                <HD SOURCE="HD2">Determination of Status</HD>
                <P>Based on the best scientific and commercial data available, we determine that the Florida Keys mole skink meets the Act's definition of an endangered species. Therefore, we are listing the Florida Keys mole skink as an endangered species in accordance with sections 3(6) and 4(a)(1) of the Act.</P>
                <HD SOURCE="HD1">Available Conservation Measures</HD>
                <P>Conservation measures provided to species listed as endangered or threatened species under the Act include recognition as a listed species, planning and implementation of recovery actions, requirements for Federal protection, and prohibitions against certain practices. Recognition through listing results in public awareness, and conservation by Federal, State, Tribal, and local agencies, foreign governments, private organizations, and individuals. The Act encourages cooperation with the States and other countries and calls for recovery actions to be carried out for listed species. The protection required by Federal agencies, including the Service, and the prohibitions against certain activities are discussed, in part, below.</P>
                <P>The primary purpose of the Act is the conservation of endangered and threatened species and the ecosystems upon which they depend. The ultimate goal of such conservation efforts is the recovery of these listed species, so that they no longer need the protective measures of the Act. Section 4(f) of the Act calls for the Service to develop and implement recovery plans for the conservation and survival of endangered and threatened species unless we determine that such a plan will not promote the conservation of the species. Under section 4(f)(1)(B)(ii), recovery plans must, to the maximum extent practicable, include objective, measurable criteria which, when met, would result in a determination, in accordance with the provisions of section 4 of the Act, that the species be removed from the Lists of Endangered and Threatened Wildlife and Plants.</P>
                <P>Recovery plans provide a roadmap for us and our partners on methods of enhancing conservation and minimizing threats to listed species, as well as measurable criteria against which to evaluate progress towards recovery and assess the species' likely future condition. However, they are not regulatory documents and do not substitute for the determinations and promulgation of regulations required under section 4(a)(1) of the Act. A decision to revise the status of a species, or to delist a species, is ultimately based on an analysis of the best scientific and commercial data available to determine whether a species is no longer an endangered species or a threatened species, regardless of whether that information differs from the recovery plan.</P>
                <P>
                    The recovery planning process begins with development of a recovery outline made available to the public soon after a final listing determination. The recovery outline guides the immediate implementation of urgent recovery actions while a recovery plan is being developed. Recovery teams (composed of species and other experts, including those from Federal and State agencies, Tribes, the academic community, or nongovernmental organizations) may be established to develop or implement recovery plans. The recovery outline, draft recovery plan, final recovery plan, and any revisions will be available on our website as they are completed (
                    <E T="03">https://www.fws.gov/program/endangered-species</E>
                    ) or from our Florida Ecological Services Field Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ).
                </P>
                <P>
                    Implementation of recovery actions generally requires the participation of a broad range of partners, including other Federal agencies, States, Tribes, nongovernmental organizations, businesses, and private landowners. Examples of recovery actions include habitat restoration (
                    <E T="03">e.g.,</E>
                     restoration of native vegetation), research, captive propagation and reintroduction, and outreach and education. The recovery of many listed species cannot be accomplished solely on Federal lands because their range may occur primarily or solely on non-Federal lands. Recovery of these species requires cooperative conservation efforts on private, State, and Tribal lands.
                </P>
                <P>
                    Once this species is listed, funding for recovery actions may be available from a variety of sources, including Federal budgets, State programs, and cost-share grants for non-Federal landowners, the academic community, and nongovernmental organizations. In addition, pursuant to section 6 of the Act, the State of Florida will be eligible for Federal funds to implement management actions that promote the protection or recovery of the Florida Keys mole skink. Information on our grant programs that are available to aid species recovery can be found at: 
                    <E T="03">https://www.fws.gov/service/financial-assistance.</E>
                </P>
                <P>
                    Please let us know if you are interested in participating in recovery efforts for the Florida Keys mole skink. Additionally, we invite you to submit any new information on this species whenever it becomes available and any information you may have for recovery planning purposes (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ).
                </P>
                <P>
                    Section 7 of the Act is titled, “Interagency Cooperation,” and it mandates all Federal action agencies to use their existing authorities to further the conservation purposes of the Act and to ensure that their actions are not likely to jeopardize the continued 
                    <PRTPAGE P="45696"/>
                    existence of listed species or adversely modify critical habitat. Regulations implementing section 7 are codified at 50 CFR part 402.
                </P>
                <P>Section 7(a)(2) states that each Federal action agency shall, in consultation with the Secretary, ensure that any action they authorize, fund, or carry out is not likely to jeopardize the continued existence of a listed species or result in the destruction or adverse modification of designated critical habitat. Each Federal agency shall review its action at the earliest possible time to determine whether it may affect listed species or critical habitat. If a determination is made that the action may affect listed species or critical habitat, formal consultation is required (50 CFR 402.14(a)), unless the Service concurs in writing that the action is not likely to adversely affect listed species or critical habitat. At the end of a formal consultation, the Service issues a biological opinion, containing its determination of whether the Federal action is likely to result in jeopardy or adverse modification.</P>
                <P>
                    Examples of discretionary actions for the Florida Keys mole skink that may be subject to consultation procedures under section 7 are management of Federal lands administered by the Service and the National Park Service, as well as actions that require a Federal permit (such as a permit from the U.S. Army Corps of Engineers under section 404 of the Clean Water Act (33 U.S.C. 1251 
                    <E T="03">et seq.</E>
                    )) or actions funded by Federal agencies such as the Federal Highway Administration, Federal Aviation Administration, or the Federal Emergency Management Agency. Federal actions not affecting listed species or critical habitat—and actions on State, Tribal, local, or private lands that are not federally funded, authorized, or carried out by a Federal agency—do not require section 7 consultation. Federal agencies should coordinate with the local Service Field Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ) with any specific questions on section 7 consultation and conference requirements.
                </P>
                <P>The Act and its implementing regulations set forth a series of prohibitions and exceptions that apply to endangered wildlife. The prohibitions of section 9(a)(1) of the Act, and the Service's implementing regulations codified at 50 CFR 17.21, make it illegal for any person subject to the jurisdiction of the United States to commit, to attempt to commit, to solicit another to commit or to cause to be committed any of the following acts with regard to any endangered wildlife: (1) import into, or export from, the United States; (2) take (which includes harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect) within the United States, within the territorial sea of the United States, or on the high seas; (3) possess, sell, deliver, carry, transport, or ship, by any means whatsoever, any such wildlife that has been taken illegally; (4) deliver, receive, carry, transport, or ship in interstate or foreign commerce, by any means whatsoever and in the course of commercial activity; or (5) sell or offer for sale in interstate or foreign commerce. Certain exceptions to these prohibitions apply to employees or agents of the Service, the National Marine Fisheries Service, other Federal land management agencies, and State conservation agencies.</P>
                <P>We may issue permits to carry out otherwise prohibited activities involving endangered wildlife under certain circumstances. Regulations governing permits for endangered wildlife are codified at 50 CFR 17.22, and general Service permitting regulations are codified at 50 CFR part 13. With regard to endangered wildlife, a permit may be issued: for scientific purposes, for enhancing the propagation or survival of the species, or for take incidental to otherwise lawful activities. The statute also contains certain exemptions from the prohibitions, which are found in sections 9 and 10 of the Act.</P>
                <P>
                    It is the policy of the Services, as published in the 
                    <E T="04">Federal Register</E>
                     on July 1, 1994 (59 FR 34272), to identify, to the extent known at the time a species is listed, specific activities that will not be considered likely to result in violation of section 9 of the Act. To the extent possible, activities that will be considered likely to result in violation will also be identified in as specific a manner as possible. The intent of this policy is to increase public awareness of the effect of a listing on proposed and ongoing activities within the range of the species.
                </P>
                <P>
                    At this time, we are unable to identify specific activities that will not be considered likely to result in a violation of section 9 of the Act beyond what is already clear from the descriptions of prohibitions or already excepted through our regulations at 50 CFR 17.21 (
                    <E T="03">e.g.,</E>
                     any person may take endangered wildlife in defense of his own life or the lives of others). Also, as discussed above, certain activities that are prohibited under section 9 may be permitted under section 10 of the Act.
                </P>
                <P>
                    At this time, we are unable to identify specific activities that will be considered likely to result in a violation of section 9 of the Act beyond what is already clear from the descriptions of the prohibitions at 50 CFR 17.21. Questions regarding whether specific activities would constitute a violation of section 9 of the Act should be directed to the Florida Ecological Services Field Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ).
                </P>
                <HD SOURCE="HD1">Required Determinations</HD>
                <HD SOURCE="HD2">Government-to-Government Relationship With Tribes</HD>
                <P>In accordance with the President's memorandum of April 29, 1994 (Government-to-Government Relations with Native American Tribal Governments; 59 FR 22951, May 4, 1994), Executive Order 13175 (Consultation and Coordination with Indian Tribal Governments), the President's memorandum of November 30, 2022 (Uniform Standards for Tribal Consultation; 87 FR 74479, December 5, 2022), and the Department of the Interior's manual at 512 DM 2, we readily acknowledge our responsibility to communicate meaningfully with federally recognized Tribes and Alaska Native Corporations (ANCs) on a government-to-government basis. In accordance with Secretaries' Order 3206 of June 5, 1997 (American Indian Tribal Rights, Federal-Tribal Trust Responsibilities, and the Endangered Species Act), we readily acknowledge our responsibilities to work directly with Tribes in developing programs for healthy ecosystems, to acknowledge that Tribal lands are not subject to the same controls as Federal public lands, to remain sensitive to Indian culture, and to make information available to Tribes. No Tribal lands overlap with the range of the Florida Keys mole skink.</P>
                <HD SOURCE="HD1">References Cited</HD>
                <P>
                    A complete list of references cited in this rulemaking is available on the internet at 
                    <E T="03">https://www.regulations.gov</E>
                     and upon request from the Florida Ecological Services Field Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ).
                </P>
                <HD SOURCE="HD1">Authors</HD>
                <P>The primary authors of this rule are the staff members of the Fish and Wildlife Service's Species Assessment Team and the Florida Ecological Services Field Office.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 50 CFR Part 17</HD>
                    <P>Endangered and threatened species, Exports, Imports, Plants, Reporting and recordkeeping requirements, Transportation, Wildlife.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Regulation Promulgation</HD>
                <P>
                    Accordingly, we amend part 17, subchapter B of chapter I, title 50 of the 
                    <PRTPAGE P="45697"/>
                    Code of Federal Regulations, as set forth below:
                </P>
                <PART>
                    <HD SOURCE="HED">PART 17—ENDANGERED AND THREATENED WILDLIFE AND PLANTS</HD>
                </PART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>1. The authority citation for part 17 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 16 U.S.C. 1361-1407; 1531-1544; and 4201-4245, unless otherwise noted.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>2. Amend § 17.11 in paragraph (h) by adding an entry for “Skink, Florida Keys mole” to the List of Endangered and Threatened Wildlife in alphabetical order under REPTILES to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 17.11 </SECTNO>
                        <SUBJECT>Endangered and threatened wildlife.</SUBJECT>
                        <STARS/>
                        <P>(h) * * *</P>
                        <GPOTABLE COLS="5" OPTS="L1,i1" CDEF="s50,r50,r50,xls54,r100">
                            <BOXHD>
                                <CHED H="1">Common name</CHED>
                                <CHED H="1">Scientific name</CHED>
                                <CHED H="1">Where listed</CHED>
                                <CHED H="1">Status</CHED>
                                <CHED H="1">Listing citations and applicable rules</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW RUL="s">
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW EXPSTB="04" RUL="s">
                                <ENT I="21">
                                    <E T="02">Reptiles</E>
                                </ENT>
                            </ROW>
                            <ROW EXPSTB="00">
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Skink, Florida Keys mole</ENT>
                                <ENT>
                                    <E T="03">Plestiodon egregius egregius</E>
                                </ENT>
                                <ENT>Wherever found</ENT>
                                <ENT>E</ENT>
                                <ENT>
                                    89 FR [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     PAGE WHERE THE DOCUMENT BEGINS], 7/21/2026
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                        </GPOTABLE>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Brian R. Nesvik,</NAME>
                    <TITLE>Director, U.S. Fish and Wildlife Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14636 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <CFR>50 CFR Part 17</CFR>
                <DEPDOC>[Docket No. FWS-R4-ES-2022-0022; FXES1111090FEDR-267-FF09E21000]</DEPDOC>
                <RIN>RIN 1018-BE84</RIN>
                <SUBJECT>Endangered and Threatened Wildlife and Plants; Endangered Species Status for Key Ring-Necked Snake and Rim Rock Crowned Snake</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        We, the U.S. Fish and Wildlife Service (Service), determine endangered species status under the Endangered Species Act of 1973 (Act), as amended, for two Florida species, the Key ring-necked snake (
                        <E T="03">Diadophis punctatus acricus</E>
                        ) and the rim rock crowned snake (
                        <E T="03">Tantilla oolitica</E>
                        ). This rule extends the protections of the Act to these species.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective August 20, 2026.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        This final rule is available at 
                        <E T="03">https://www.regulations.gov.</E>
                        Comments and materials we received on our October 14, 2022, proposed rule (87 FR 62614) are available for public inspection at 
                        <E T="03">https://www.regulations.gov</E>
                         at Docket No. FWS-R4-ES-2022-0022.
                    </P>
                    <P>
                        <E T="03">Availability of supporting materials:</E>
                         Supporting materials we used in preparing this rule, such as the species status assessment reports, are available at 
                        <E T="03">https://www.regulations.gov</E>
                         at Docket No. FWS-R4-ES-2022-0022.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Nikki Colangelo, Classification and Recovery Division Manager, U.S. Fish and Wildlife Service, Florida Ecological Services Field Office; 
                        <E T="03">nikki_colangelo@fws.gov;</E>
                         772-226-8138. 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>
                <HD SOURCE="HD1">Executive Summary</HD>
                <P>
                    <E T="03">Why we need to publish a rule.</E>
                     The Act (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ) defines a “species” as including any subspecies of fish or wildlife or plants, and any distinct population segment of any species of vertebrate fish or wildlife which interbreeds when mature. Under the Act, a species warrants listing if it meets the definition of an endangered species (in danger of extinction throughout all or a significant portion of its range) or a threatened species (likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range). If we determine that a species warrants listing, we must list the species promptly. We have determined that the Key ring-necked snake and the rim rock crowned snake both meet the Act's definition of an endangered species; therefore, we are listing them as such. Listing a species as an endangered or threatened species can be completed only by issuing a rule through the Administrative Procedure Act rulemaking process (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <P>
                    <E T="03">What this document does.</E>
                     We are listing both the Key ring-necked snake and the rim rock crowned snake as endangered species under the Act.
                </P>
                <P>
                    <E T="03">The basis for our action.</E>
                     Under the Act, we may determine that a species is an endangered or threatened species because of any of five factors: (A) The present or threatened destruction, modification, or curtailment of its habitat or range; (B) overutilization for commercial, recreational, scientific, or educational purposes; (C) disease or predation; (D) the inadequacy of existing regulatory mechanisms; or (E) other natural or manmade factors affecting its continued existence. We have determined that the Key ring-necked snake and the rim rock crowned snake are facing threats due to development (Factor A), fire suppression (Factor A), and sea level rise and saltwater intrusion (Factor A).
                </P>
                <HD SOURCE="HD1">List of Abbreviations and Acronyms</HD>
                <P>We use many abbreviations and acronyms in this rule. For the convenience of the reader, we define some of them here:</P>
                <EXTRACT>
                    <FP SOURCE="FP-1">ac = acres</FP>
                    <FP SOURCE="FP-1">cm = centimeters</FP>
                    <FP SOURCE="FP-1">BO = Biological Opinion</FP>
                    <FP SOURCE="FP-1">DLC = Deering Estate/Ludlum Pineland Area/Chapman Field</FP>
                    <FP SOURCE="FP-1">
                        EEL = environmentally endangered lands, as identified by the Environmentally 
                        <PRTPAGE P="45698"/>
                        Endangered Lands Program in Miami-Dade County, Florida
                    </FP>
                    <FP SOURCE="FP-1">FEMA = Federal Emergency Management Agency</FP>
                    <FP SOURCE="FP-1">ft = feet</FP>
                    <FP SOURCE="FP-1">HCP = habitat conservation plan</FP>
                    <FP SOURCE="FP-1">ha = hectares</FP>
                    <FP SOURCE="FP-1">in = inches</FP>
                    <FP SOURCE="FP-1">km = kilometers</FP>
                    <FP SOURCE="FP-1">m = meters</FP>
                    <FP SOURCE="FP-1">mi = miles</FP>
                    <FP SOURCE="FP-1">mm = millimeters</FP>
                    <FP SOURCE="FP-1">NOAA = National Oceanic and Atmospheric Administration</FP>
                    <FP SOURCE="FP-1">RCP = representative concentration pathway</FP>
                    <FP SOURCE="FP-1">SSA = species status assessment</FP>
                    <FP SOURCE="FP-1">USGS = U.S. Geological Survey</FP>
                    <FP SOURCE="FP-1">USGCRP = U.S. Global Change Research Program</FP>
                </EXTRACT>
                <HD SOURCE="HD1">Previous Federal Actions</HD>
                <P>Please refer to our October 14, 2022, proposed rule (87 FR 62614) for a detailed description of previous Federal actions concerning the Key ring-necked snake and the rim rock crowned snake.</P>
                <HD SOURCE="HD1">Peer Review</HD>
                <P>An SSA team prepared SSA reports for both the Key ring-necked snake and the rim rock crowned snake (Service 2023a, entire; Service 2023b, entire). The SSA teams were composed of Service biologists, in consultation with other species experts. The SSA reports represent a compilation of the best scientific and commercial data available concerning the status of the species, including the impacts of past, present, and future factors (both negative and beneficial) affecting the species.</P>
                <P>
                    In accordance with our joint policy with the National Marine Fisheries Service (NMFS) on peer review published in the 
                    <E T="04">Federal Register</E>
                     on July 1, 1994 (59 FR 34270), and our August 22, 2016, memorandum updating and clarifying the role of peer review of listing and recovery actions under the Act (
                    <E T="03">https://www.fws.gov/sites/default/files/documents/peer-review-policy-directors-memo-2016-08-22.pdf</E>
                    ), we solicited independent scientific review of the information contained in the SSA reports. As discussed in our October 14, 2022, proposed rule (87 FR 62614 at 62616), we sent the Key ring-necked snake SSA report to five independent peer reviewers for review, including scientists with expertise in wildlife biology, herpetology, and conservation biology. We received two responses. We sent the rim rock crowned snake SSA report to five independent peer reviewers, including scientists with expertise in wildlife biology, herpetology, and conservation biology. We received three responses. The peer reviews can be found at 
                    <E T="03">https://www.regulations.gov</E>
                     at Docket No. FWS-R4-ES-2022-0022. In preparing the proposed rule, we incorporated the results of these reviews, as appropriate, into the SSA reports, which served as the foundation for the proposed rule and this final rule. A summary of the peer review comments and our responses can be found under Summary of Comments and Recommendations, below.
                </P>
                <HD SOURCE="HD1">Summary of Changes From the Proposed Rule</HD>
                <P>Based on information provided during the October 14, 2022, proposed rule's comment period, we make the following changes to this final rule:</P>
                <P>(1) We updated the reference for the sea level rise report cited in the proposed rule. In the proposed rule, the reference for that report was U.S. Geological Survey (USGS) 2019. Since the publication of the proposed rule, the results have been published in the journal “Conservation Science and Practice,” and we have updated the reference to now be Subedi et al. (2022). The results themselves were unchanged, so we did not revise the discussion of this information in the SSA reports and this final rule.</P>
                <P>(2) Although updated sea level rise projections were released by NOAA (Sweet et al. 2022) subsequent to our completion of the SSA reports, we reviewed the updated projections and found that they do not alter our analyses of impacts to Key ring-necked snake and rim rock crowned snake habitat. Where appropriate, we added the Sweet et al. 2022 reference to the text of this rule.</P>
                <P>(3) We updated information on habitat protections related to the HCP for Big Pine Key and No Name Key, which expired June 30, 2026.</P>
                <P>(4) We made minor, nonsubstantive editorial revisions and corrections throughout this rule to ensure better consistency and to clarify information.</P>
                <P>Beyond those changes, this final rule listing the Key ring-necked snake and rim rock crowned snake as endangered species is unchanged from what we proposed on October 14, 2022 (87 FR 62614).</P>
                <HD SOURCE="HD1">Summary of Comments and Recommendations</HD>
                <P>In the proposed rule published on October 14, 2022 (87 FR 62614), we requested that all interested parties submit written comments on the proposal by December 13, 2022. We also contacted appropriate Federal and State agencies, scientific experts and organizations, and other interested parties and invited them to comment on the proposal. Newspaper notices inviting public comments for both species were published in the Key West Citizen and the Miami Herald. Due to the impact of Hurricane Ian, on November 28, 2022, we extended the public comment period to January 12, 2023, in order to allow all interested parties time to comment (see 87 FR 72958). We did not receive any requests for a public hearing. All substantive information received during the comment period has either been incorporated directly into this final determination or is addressed below.</P>
                <HD SOURCE="HD2">Peer Reviewer Comments</HD>
                <P>As discussed above in Peer Review, we received comments from two peer reviewers on the draft SSA report for the Key ring-necked snake and three peer reviewers on the draft SSA report for the rim rock crowned snake. We reviewed all comments we received from the peer reviewers for substantive issues and new information regarding the contents of the SSA reports. Peer reviewer comments are addressed in the following summary. As discussed above, because we conducted these peer reviews prior to the publication of our October 14, 2022, proposed rule, we had already incorporated all applicable peer review comments into version 1.0 of both SSA reports, which serve as the foundation for the proposed rule and this final rule.</P>
                <P>The peer reviewers generally concurred with our methods and conclusions. They provided additional information, clarifications, and suggestions to improve the final SSA reports, including on snake ecology, habitat use, and characterization of threats. No substantive changes to our analysis and conclusions within the SSA reports were deemed necessary, and peer reviewer comments are addressed in version 1.0 of the SSA reports and this final rule.</P>
                <P>
                    <E T="03">(1) Comment:</E>
                     One reviewer questioned our assessment of water as essential to the rim rock crowned snake. They stated that some species in the same genus are found in deserts, and that the primary prey (centipedes, insects, and other small invertebrates) of the rim rock crowned snake is not reliant on water.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     Snakes in the genus 
                    <E T="03">Tantilla</E>
                     have a wide distribution, with the 76 recognized species ranging from the southern United States to northern Argentina (Powell et al. 2016, pp. 395-400). The available data on the rim rock crowned snake indicate that this species is associated with moist microhabitats and that it is vulnerable to desiccation (Powell et al. 2016, pp. 395-400). While we acknowledge that large bodies of water are not required by the species, 
                    <PRTPAGE P="45699"/>
                    we affirm that small amounts of available freshwater and warm, moist microhabitats are an appropriate individual need for the rim rock crowned snake.
                </P>
                <P>
                    <E T="03">(2) Comment:</E>
                     One peer reviewer and one public commenter disagreed with our assessment of fire suppression as a threat to the rim rock crowned snake because some prescribed burning is occurring. The peer reviewer stated that even if we do conclude that fire suppression is a threat, we should not rank it as high risk. The public commenter highlighted recent prescribed burns in areas such as Richmond Pine Rocklands and Ned Glenn Nature Preserve, and they stated that we should reclassify those areas as moderate risk.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     In the SSA reports, we defined moderate risk as a level of fire suppression that would affect some suitable habitat and displace some individual snakes, but not at an extent to affect population resiliency. We defined high risk as a situation where a significant amount of suitable habitat would be lost due to fire suppression such that snake population resiliency would be impacted. At the time of the drafting of the SSA reports, the areas identified by the public commenter were considered highly fire suppressed. We acknowledge that conditions at some of these sites have improved in recent years due to some prescribed burning. However, despite management plans supporting prescribed fire, continuous cycles of burning can be disrupted due to urbanization or lack of available funding. We, therefore, conclude that the rank of high risk is appropriate for fire suppression in Miami-Dade County populations.
                </P>
                <P>
                    <E T="03">(3) Comment:</E>
                     One peer reviewer, one member of a State agency, and several public commenters asked for clarification on the ranking of predation as low risk in Miami-Dade County, given previous issues with feral cats at some sites in the area. They noted potential effects of predation on the rim rock crowned snake and their eggs due to species such as red imported fire ants or feral cats. One commenter added that any effects of disease or invasive species would be very difficult to observe, due to the rarity of the species. Another urged us to carefully monitor the effects of cumulative impacts, including those associated with disease, predation, and invasive species.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     In the SSA reports for the species, we considered all threats impacting the Key ring-necked snake and the rim rock crowned snake, including disease and predation. Although we present summaries of only six threats in the October 14, 2022, proposed rule and in this final rule, we evaluated the cumulative effects of all threats, including disease and predation, and carefully considered them in the determination for each species. Although disease and predation may have low impacts on their own, combined with impacts of other threats, they could further reduce the already low numbers of Key ring-necked snakes or rim rock crowned snakes. Thus, we consider the ranking of disease and predation as low risk to be appropriate. We acknowledge that these threats could be difficult to detect, however, so we will continue to investigate the magnitude and interactions of threats and any potential identifiable impacts of disease and predation in recovery planning for the species.
                </P>
                <P>We reviewed the literature, and there is no new information on predation that we did not consider in the SSA reports or the October 14, 2022, proposed rule.</P>
                <HD SOURCE="HD2">Comments From Federal Agencies, States, and Tribes</HD>
                <P>
                    We did not receive any comments from Federal agencies or from Tribal entities. We received one comment from the State of Florida, which is addressed above under 
                    <E T="03">(3) Comment.</E>
                </P>
                <HD SOURCE="HD2">Public Comments</HD>
                <P>
                    <E T="03">(4) Comment:</E>
                     One commenter disagreed with our statement that we did not expect a future reduction in representation in Miami-Dade County for the rim rock crowned snake. The commenter noted that the populations in that county are under threat due to sea level rise, invasive species, and the overall rarity of the species.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     Based on our future scenarios for the rim rock crowned snake, we do expect a decrease in population resiliency in Miami-Dade County in the foreseeable future; that is, we expect that due to the impacts of fire suppression and sea level rise, rim rock crowned snake populations will be less likely to withstand stochastic events. However, we do not expect any changes in rim rock crowned snake representation; that is, we do not expect any changes in the ability of the species in that area to adapt to both near-term and long-term changes in its physical and biological environment. In the most pessimistic future scenario in Miami-Dade County, approximately 2.3 percent of pine rocklands habitat (52 ac (21 ha)) and 19 percent of rockland hammock habitat (113 ac (46 ha)) are forecasted to be impacted by sea level rise (see tables 5 and 6, below, for more details on projected future change to habitat due to sea level rise in Miami Dade County). Given that small amount of forecasted impact from sea level rise and limited information about invasive species' direct effect on the rim rock crowned snake, we do not expect a decrease in representation for the species in Miami-Dade County.
                </P>
                <P>
                    <E T="03">(5) Comment:</E>
                     One commenter recommended that we re-evaluate the risk categories for sea level rise and saltwater intrusion in Miami-Dade County and recommended that some locations such as Arch Creek Park be scored as high risk rather than moderate risk.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     We reviewed our model estimating sea level rise and saltwater intrusion in Arch Creek Park and other coastal areas in Miami Dade County. Neither Arch Creek Park nor Barnacle Historic State Park (the areas closest to the coast in Miami-Dade County that we identify as currently occupied by the rim rock crowned snake) are projected to be inundated in any of our future scenarios. However, the risk remains moderate due to uncertainty regarding the extent that saltwater intrusion will transform habitat. Therefore, we conclude that moderate risk is appropriate for these two areas.
                </P>
                <P>
                    <E T="03">(6) Comment:</E>
                     One commenter recommended we re-evaluate the risk category for development for all non-EEL properties in Miami-Dade County. The commenter thought all those lands should be listed as high risk of development given that they lack the protections of EEL properties. They did agree with the moderate risk of development for EEL properties, given that recreational development has occurred and that the lands are subject to secondary effects from development.
                </P>
                <P>
                    <E T="03">Our response:</E>
                     The seven populations of rim rock crowned snake that we identified in Miami-Dade County (shown in table 4 of this rule) are located primarily on park lands, with very little private ownership. For example, Barnacle Historic State Park is owned and managed by the State of Florida. Other locations, such as the Bill Sadowski Park and the Deering Estate/Ludlum Pineland Area/Chapman Field (DLC) area, are a mix of public and private lands without EEL designations. (EEL properties are part of a taxpayer-funded program to protect environmentally endangered lands such as pine rocklands). Therefore, since only portions of the above areas are at risk of destruction due to development, we find our current ranking of these populations as having a moderate risk of the threat of development is appropriate. We define moderate risk as the level of development that would affect suitable habitat and displace some 
                    <PRTPAGE P="45700"/>
                    individual snakes, but not at an extent to affect snake populations.
                </P>
                <HD SOURCE="HD1">I. Final Listing Determination</HD>
                <HD SOURCE="HD1">Background</HD>
                <HD SOURCE="HD2">Key Ring-Necked Snake</HD>
                <P>
                    A thorough review of the taxonomy, life history, and ecology of the Key ring-necked snake (
                    <E T="03">Diadophis punctatus acricus</E>
                    ) is presented in the SSA report (version 1.0; Service 2023a, pp. 2-5). The Key ring-necked snake is one of 14 distinct subspecies of ring-necked snakes in North America, all of which are subspecies of 
                    <E T="03">D. punctatus.</E>
                     It is one of the smallest subspecies of the Family Dipsadidae; an adult specimen will average between 6 and 10 in (15.2 and 25.4 cm). A recent review of phylogenetic data supports the current subspecies classification for the Key ring-necked snake (Hoffman 2019, entire).
                </P>
                <P>This slender snake has a pale grayish-brown head; a grayish-black dorsal surface; and a yellow, orange, or bright red abdomen which fades to orange/red underneath the tail (Florida Fish and Wildlife Conservation Commission (FWC) 2013, p. 1). The pupil is round, and the juvenile color is similar to that of the adult (Ernst and Ernst 2003, p. 92; FWC 2013, p. 1). The characteristic neck ring is indistinct or virtually absent in both juveniles and adults.</P>
                <P>Little life-history information is available on the Key ring-necked snake, especially as it relates to microhabitat, feeding, and reproduction. Life-history characteristics are thought to be similar to the southern ring-necked snake. In general, mating of ring-necked snakes can occur in the spring or fall, delayed fertilization is possible, and eggs are laid in June or early July. Females lay 1 to 10 eggs at a time each year (1 clutch per year) in covered, moist locations (Ernst and Ernst 2003, p. 95). Juveniles are thought to hatch in August and September.</P>
                <P>
                    Suitable habitat consists of pinelands, pine rocklands, tropical hammock, rockland hammock, limestone outcroppings, and rocky pine scrub areas (McDiarmid 1978, p. 41; Lazell 1989, p. 134; Auth and Scott 1996, p. 33; Enge et al. 2003, pp. 26-28). Most of the observations in the Florida Keys were from pine rocklands or nearby rockland hammocks. This subspecies appears to be restricted to areas near permanent freshwater that often occur as small holes in the oolitic (a sedimentary rock, usually limestone, composed of minute rounded concretions) substrate that underlies pine rocklands and rockland hammock habitat (Lazell 1989, pp. 134, 136). All 
                    <E T="03">Diadophis</E>
                     apparently require moist microhabitats to balance evaporative water loss from the body (Myers 1965, p. 4; Clark 1967, pp. 492-494).
                </P>
                <P>Key ring-necked snakes have been documented on seven lower Florida Keys: Key West, Big Pine Key, Little Torch Key, Middle Torch Key, No Name Key, Cudjoe Key, and Stock Island (Auth and Scott 1996, p. 33; FWC 2011, p. 3; 2013, p. 1; Mays and Enge 2016, pp. 11, 13; Mays 2020, pers. comm.) (see figure 1, below). A unique characteristic of the Florida Keys is the thin (&lt; 3.94 in (10 cm)) layer of sediment on the islands beneath which lies a bed of limestone, and below that a shallow layer of freshwater referred to as a freshwater lens (Subedi et al. 2022, p. 2-3). Because the density of freshwater is less than the underlying saltwater, it floats to the top and into the limestone rock formations where it becomes available to the island's biota. The volume of a freshwater lens fluctuates in response to rainfall, evapotranspiration, and human use (local wells).</P>
                <P>Systematic recent surveys have not been conducted for the Key ring-necked snake across all of the Florida Keys; therefore, the true spatial distribution of populations throughout the Florida Keys is unclear and our current understanding of the subspecies' distribution is primarily based on historical records. Consequently, this subspecies may occur on Florida Keys other than those reported.</P>
                <GPH SPAN="3" DEEP="363">
                    <PRTPAGE P="45701"/>
                    <GID>ER21JY26.002</GID>
                </GPH>
                <HD SOURCE="HD2">Rim Rock Crowned Snake</HD>
                <P>
                    A thorough review of the taxonomy, life history, and ecology of the rim rock crowned snake (
                    <E T="03">Tantilla oolitica</E>
                    ) is presented in the SSA report (version 1.0; Service 2023b, pp. 10-20). The rim rock crowned snake is in the family Colubridae, part of the black-headed, crowned, and flat-headed snake genus 
                    <E T="03">Tantilla,</E>
                     with 76 currently recognized species ranging from the southern United States to northern Argentina (Powell et al. 2016, pp. 395-400). The rim rock crowned snake is most closely related to the southeastern crowned snake (
                    <E T="03">T. coronata</E>
                    ) taxonomically, although it is located geographically closer to the Florida crowned snake (
                    <E T="03">T. relicta;</E>
                     Ernst and Ernst 2003, pp. 353-355). No genetic analysis has been conducted on the rim rock crowned snake.
                </P>
                <P>Rim rock crowned snakes have a black head (“cap”) that is continuous from snout to neck (“collar”), transitioning to tan or beige on its back, and a pinkish white to cream belly. There is often a pale blotch just behind the eye. Specimens from the Florida Keys may have a pale neckband that is not present in mainland specimens, separating the black cap from the black collar (Porras and Wilson 1979, pp. 218-220). Adults range from 7 to 9 in (18 to 23 cm) in length. Females reach a greater length than do males, but have shorter tails (Ernst and Ernst 2003, pp. 353-355). Hatchlings range from 3-3.5 in (7.5-9.0 cm) in length.</P>
                <P>
                    The reproduction, longevity, and diet of the rim rock crowned snake are unknown, but if it is similar to the closely related southeastern crowned snake, it probably matures at 2 years old and may live to be at least 5 years old in the wild (Todd et al. 2008, p. 392). There may be three eggs in a clutch, and they may be able to produce two clutches annually (Ernst and Ernst 2003, pp. 353-355). There is no information as to whether eggs or juvenile rim rock crowned snakes require different habitat than adults. Predators are likely larger snake species that inhabit the same areas. The rim rock crowned snake may also be preyed upon by the slender brown scorpion (
                    <E T="03">Centruroides gracilis</E>
                    ), which is abundant in rockland habitat (Porras and Wilson 1979, pp. 218-220).
                </P>
                <P>The rim rock crowned snake is a mostly fossorial (underground) species that inhabits shallow soil over limestone formations, and it can sometimes be found in rotten stumps and under anthropogenic surface detritus, fallen logs, and rocks (Duellman and Schwarz 1958, p. 306; Rochford et al. 2010, p. 99; Yirka et al. 2010, p. 386; FWC 2011, p. 3; Hines 2011, p. 353). These snakes are vulnerable to desiccation, so they usually occupy moist microhabitats (Powell et al. 2016, pp. 395-400). Refugia in pine rocklands and rockland hammock are provided by holes and crevices in the limestone, piles of rock rubble, pockets of organic matter accumulating in solution holes, and shallow depressions in the limestone (Enge et al. 2003, pp. 27-28). Rim rock crowned snakes likely come to the surface after rains (Porras and Wilson 1979, pp. 218-220), possibly because of flooding of their underground refugia.</P>
                <P>
                    The rim rock crowned snake has been historically found in the lower Florida Keys, in particular Key West and Big Pine Key; the upper Florida Keys; and the southeastern Florida peninsula within Miami-Dade County, in a variety 
                    <PRTPAGE P="45702"/>
                    of locations (see figure 2, below). Within this limited range, the rim rock crowned snake is found in pine rocklands and rockland hammock, which consist of a limestone substrate and outcroppings. Pine rocklands habitat is fire-maintained and dominated by pine trees and a diverse understory of grasses and forbs/herbs. In contrast, rockland hammock contains more hardwood shrubs and trees due to less fire influence. There are also occurrence records from human-altered habitats such as roadsides, vacant lots, and pastures with shrubby growth and slash pines (
                    <E T="03">Pinus elliottii</E>
                    ) (Duellman and Schwarz 1958, p. 306; Hines 2011, pp. 352-356).
                </P>
                <P>Because of the rim rock crowned snake's cryptic and fossorial nature, a method to formally census remaining populations throughout the species' range has not been developed. We based our understanding of the species' range on observational records and habitat suitability. Limited dispersal is thought to occur between rim rock crowned snake populations within the Florida Keys because there is no evidence that indicates they readily swim to other islands. Additionally, areas in Miami-Dade County where populations may remain are likely isolated from others due to physical barriers from a dense urban interface.</P>
                <GPH SPAN="3" DEEP="345">
                    <GID>ER21JY26.003</GID>
                </GPH>
                <HD SOURCE="HD1">Regulatory and Analytical Framework</HD>
                <HD SOURCE="HD2">Regulatory Framework</HD>
                <P>
                    Section 4 of the Act (16 U.S.C. 1533) and the implementing regulations in title 50 of the Code of Federal Regulations set forth the procedures for determining whether a species is an endangered species or a threatened species, issuing protective regulations for threatened species, and designating critical habitat for endangered and threatened species. On April 5, 2024, jointly with the National Marine Fisheries Service, the Service issued a final rule that revised the regulations in 50 CFR part 424 regarding how we add, remove, and reclassify endangered and threatened species and what criteria we apply when designating listed species' critical habitat (89 FR 24300). On the same day, the Service published a final rule revising our protections for endangered species and threatened species at 50 CFR part 17 (89 FR 23919). These final rules are now in effect and are incorporated into the current regulations. Our analysis for this final decision applied our current regulations. Given that we proposed listing these species under our prior regulations (revised in 2019), we have also undertaken an analysis of whether our decision would be different if we had continued to apply the 2019 regulations; we concluded that the decision would be the same. The analyses under both the regulations currently in effect and the 2019 regulations are available on 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <P>
                    The Act defines an “endangered species” as a species that is in danger of extinction throughout all or a significant portion of its range and a “threatened species” as a species that is likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range. The Act requires that we determine whether any species is an endangered species or a threatened species because of any of the following factors:
                    <PRTPAGE P="45703"/>
                </P>
                <P>(A) The present or threatened destruction, modification, or curtailment of its habitat or range;</P>
                <P>(B) Overutilization for commercial, recreational, scientific, or educational purposes;</P>
                <P>(C) Disease or predation;</P>
                <P>(D) The inadequacy of existing regulatory mechanisms; or</P>
                <P>(E) Other natural or manmade factors affecting its continued existence.</P>
                <P>These factors represent broad categories of natural or human-caused actions or conditions that could have an effect on a species' continued existence. In evaluating these actions and conditions, we look for those that may have a negative effect on individuals of the species, as well as other actions or conditions that may ameliorate any negative effects or may have positive effects.</P>
                <P>We use the term “threat” to refer in general to actions or conditions that are known to or are reasonably likely to negatively affect individuals of a species. The term “threat” includes actions or conditions that have a direct impact on individuals (direct impacts), as well as those that affect individuals through alteration of their habitat or required resources (stressors). The term “threat” may encompass—either together or separately—the source of the action or condition or the action or condition itself.</P>
                <P>However, the mere identification of any threat(s) does not necessarily mean that the species meets the statutory definition of an endangered species or a threatened species. In determining whether a species meets either definition, we must evaluate all identified threats by considering the species' expected response and the effects of the threats—in light of those actions and conditions that will ameliorate the threats—on an individual, population, and species level. We evaluate each threat and its expected effects on the species, then analyze the cumulative effect of all of the threats on the species as a whole. We also consider the cumulative effect of the threats in light of those actions and conditions that will have positive effects on the species, such as any existing regulatory mechanisms or conservation efforts. The Secretary determines whether the species meets the definition of an endangered species or a threatened species only after conducting this cumulative analysis and describing the expected effect on the species.</P>
                <P>
                    The Act does not define the term “foreseeable future,” which appears in the statutory definition of threatened species. Our implementing regulations at 50 CFR 424.11(d) set forth a framework for evaluating the foreseeable future on a case-by-case basis, which is further described in the 2009 Memorandum Opinion on the foreseeable future from the Department of the Interior, Office of the Solicitor (M-37021, January 16, 2009; “M-Opinion,” available online at 
                    <E T="03">https://www.doi.gov/sites/doi.opengov.ibmcloud.com/files/uploads/M-37021.pdf</E>
                    ). The foreseeable future extends as far into the future as the Service can make reasonably reliable predictions about the threats to the species and the species' responses to those threats. We need not identify the foreseeable future in terms of a specific period of time. We will describe the foreseeable future on a case-by-case basis, using the best scientific and commercial data available and taking into account considerations such as the species' life-history characteristics, threat-projection timeframes, and environmental variability. In other words, the foreseeable future is the period of time over which we can make reasonably reliable predictions. “Reliable” does not mean “certain”; it means sufficient to provide a reasonable degree of confidence in the prediction, in light of the conservation purposes of the Act.
                </P>
                <HD SOURCE="HD2">Analytical Framework</HD>
                <P>The SSA reports documents the results of our comprehensive biological review of the best scientific and commercial data available regarding the status of the two species, including an assessment of the potential threats to the species. The SSA reports do not represent our decision on whether the species should be listed as an endangered or threatened species under the Act. However, they do provide the scientific basis that informs our regulatory decisions, which involve the further application of standards within the Act and its implementing regulations and policies.</P>
                <P>To assess the viability of the Key ring-necked snake and the rim rock crowned snake, we used the three conservation biology principles of resiliency, redundancy, and representation (Shaffer and Stein 2000, pp. 306-310). Briefly, resiliency is the ability of the species to withstand environmental and demographic stochasticity (for example, wet or dry, warm or cold years); redundancy is the ability of the species to withstand catastrophic events (for example, droughts, large pollution events); and representation is the ability of the species to adapt to both near-term and long-term changes in its physical and biological environment (for example, climate conditions, pathogens). In general, species viability will increase with increases in resiliency, redundancy, and representation (Smith et al. 2018, p. 306) Using these principles, we identified the species' ecological requirements for survival and reproduction at the individual, population, and species levels, and described the beneficial and risk factors influencing the species' viability.</P>
                <P>The SSA process can be categorized into three sequential stages. During the first stage, we evaluated the individual species' life-history needs. The next stage involved an assessment of the historical and current condition of the species' demographics and habitat characteristics, including an explanation of how the species arrived at its current condition. The final stage of the SSA involved making predictions about the species' future condition, including responses to positive and negative environmental and anthropogenic influences. Throughout all of these stages, we used the best scientific and commercial data available to characterize viability as the ability of a species to sustain populations in the wild over time, which we then used to inform our regulatory decision.</P>
                <P>
                    The following is a summary of the key results and conclusions from the Key ring-necked snake and the rim rock crowned snake SSA reports; the full SSA reports can be found at Docket No. FWS-R4-ES-2022-0022 on 
                    <E T="03">https://www.regulations.gov</E>
                     and at 
                    <E T="03">https://www.fws.gov/species/key-ring-necked-snake-diadophis-punctatus-acricus</E>
                     for the Key ring-necked snake and at 
                    <E T="03">https://www.fws.gov/species/rim-rock-crowned-snake-tantilla-oolitica</E>
                     for the rim rock crowned snake.
                </P>
                <HD SOURCE="HD1">Summary of Biological Status and Threats</HD>
                <P>In this discussion, we review the biological condition of the species and its resources, and the threats that influence the species' current and future condition, in order to assess the species' overall viability and the risks to that viability.</P>
                <HD SOURCE="HD2">Key Ring-Necked Snake—Population and Subspecies Needs</HD>
                <P>
                    In this discussion, we outline the resource needs of individuals and populations of the Key ring-necked snake. As part of the assessment, we first identify and describe the four most influential factors representing the individual and population needs for the subspecies: prey, refugia, water, and available suitable habitat. Due to the relative rarity of this subspecies and its 
                    <PRTPAGE P="45704"/>
                    secretive nature, many aspects of the life history of this taxon, as well as information on population status and trends, are poorly known. We rely upon ecologically and genetically similar species to draw inferences when data are lacking.
                </P>
                <P>
                    For prey, the Key ring-necked snake is assumed to be similar to other 
                    <E T="03">Diadophis</E>
                     species (such as the southern ring-necked snake), which prey upon small insects, snakes, lizards (anoles, geckos), slugs, amphibians (frogs, tadpoles), and earthworms (Ernst and Ernst 2003, p. 96; FWC 2013, p. 2).
                </P>
                <P>Key ring-necked snakes require refugia to escape and hide from predators and to regulate body temperature. Refugia in pine rocklands and rockland hammock are likely provided by holes and crevices in the limestone, piles of rock rubble, and pockets of organic matter accumulating in solution holes and shallow depressions in the oolitic limestone (Enge et al. 2003, p. 28). Snakes are ectothermic organisms, which require an external heat source to warm their bodies in order to increase body function and productivity. Snakes can also become too hot, leading to desiccation. Therefore, a warm, moist habitat, typically subterranean or shielded from the sun, is likely a preferred refugium to escape from predators and to properly maintain homeostasis (suitable internal temperature and moisture levels).</P>
                <P>Water is essential for Key ring-necked snake survival. This subspecies appears to be restricted to areas near permanent freshwater sources that often occur as small holes in the limestone (Lazell 1989, pp. 134, 136). The extensive network of holes, tunnels, and cavities in the limestone substrate most likely assists in creating more permanent water sources. During times of drought, these sources may become scarce and the Key ring-necked snakes may need to seek out other freshwater sources. Consequently, it is important for the Key ring-necked snake to have multiple freshwater sources in case one becomes depleted, contaminated, or unavailable. If all local water sources within a snake's home range become dry, the snake may need to expend more energy and time in search of new water sources.</P>
                <P>
                    The most influential need for population viability is available suitable habitat. Home range is defined as the area a snake traverses for its normal daily activities (Burt 1943, pp. 350-351; Miller 2008, p. 16). The specific acreage associated with the Key ring-necked snake's home range is unknown; however, an individual was documented traveling 154.2 ft (47 m) between coverboards (Lazell 1989, p. 134). Over 400 mark recapture measurements of ring-necked snakes in Kansas indicated a mean travel distance of 262 ft (80 m) with a maximum distance of 5,577 ft (1,700 m) (Fitch 1975, p. 25). In another study, a different ring-necked snake subspecies (
                    <E T="03">Diadophis punctatus edwardsii</E>
                    ) in northern Michigan was documented to travel between 20 ft (6 m) and 1 mi (1,609 m) (Blanchard et al. 1979, pp. 382, 385). Thus, although ring-necked snakes generally only move within a small home range, they will occasionally disperse over longer distances through suitable habitat.
                </P>
                <P>In regard to population size and distribution of the Key ring-necked snake, there may be either distinct, non-interbreeding populations at each Key, or some occasional but rare level of dispersal from rafting (oceanic dispersal whereby a species travels between islands on a mass or raft of vegetation) between Keys, providing at least a small level of connectivity between individual populations. Because the Key ring-necked snake appears to be isolated to the Florida Keys, the relatively small archipelago of islands can each support only a small number of individuals (or separate populations).</P>
                <P>Due to the cryptic nature of the Key ring-necked snake and limited research on the subspecies, there is virtually no information concerning the population structure and demographics exhibited by this subspecies. Additionally, no information exists on the abundance (number of individuals) or growth rate of these populations. Therefore, we base our assessment of the health and resiliency of these populations on the condition of its habitat as a proxy. That said, continued occurrence of populations over time at known locations suggest some ability to withstand stochastic events on the Keys, historically.</P>
                <P>Populations of the Key ring-necked snake are supported by the existence of suitable available habitat (pine rocklands and rockland hammock) across the subspecies' range. Therefore, a strong correlation to habitat availability and Key ring-necked snake populations can be assumed, but not at a level of certainty in which the presence of suitable pine rocklands or rockland hammock habitat can be used as a surrogate for Key ring-necked snake presence.</P>
                <P>Passive dispersal of individual Key ring-necked snakes among the Florida Keys may be occurring on a very limited and random basis. The level to which immigration and emigration via dispersal acts as a factor towards population resiliency and prevention against extinction for this subspecies is unknown. Many of the Florida Keys have yet to be surveyed for Key ring-necked snakes, but if occupied, they could act as “stepping stones” in the random dispersal of individual snakes by way of swimming or rafting. That said, due to the limited size of the Florida Keys, the distance between the Keys, and the fact that swimming has not been documented in Key ring-necked snakes, dispersal is not likely, and, thus, it has a limited influence on population dynamics.</P>
                <P>Because systematic recent surveys have not been conducted for the Key ring-necked snake across all of the Florida Keys, the true spatial distribution of populations throughout the Florida Keys is unclear and our current understanding of the subspecies' distribution is primarily based on historical records.</P>
                <P>As discussed above, widely distributed populations offer better redundancy than if the populations all occur in close proximity and are vulnerable to similar threats at the same intensity or timing. Because of the Key ring-necked snake's limited geographic range, the species is exposed to threats concurrently and of similar frequency, intensity, and duration across its range. For example, the entire subspecies is vulnerable to the effects of a hurricane passing over the Florida Keys. Additionally, the extent of suitable habitat is naturally limited in the Keys. Consequently, there is little natural redundancy or “backup” for the available habitat, and natural expansion or movement of the subspecies to new areas is not probable. The minimum number of sufficiently resilient populations necessary to sustain the subspecies is unknown. Based on the presence of pine rocklands and rockland hammock habitat (total acreage 7,006 ac (2,835 ha)) in the upper Florida Keys, redundancy could be higher if discrete populations occur across the upper Florida Keys. However, the range of this subspecies appears to be restricted to the lower Florida Keys (Mays 2020, pers. comm.). Given the low likelihood of dispersal between islands, we considered islands in the lower Florida Keys (Key West, Big Pine Key, Little Torch Key, Middle Torch Key, No Name Key, Cudjoe Key, and Stock Island) as separate Key ring-necked snake populations.</P>
                <P>
                    As currently indicated, the Key ring-necked snake occupies a small geographic area, making it vulnerable to large-scale threats (for example, storm events/hurricanes, sea level rise) that 
                    <PRTPAGE P="45705"/>
                    affect the entire Florida Keys archipelago.
                </P>
                <P>Because of the Key ring-necked snake's narrow geographic and ecological range, there is little variation in habitat types occupied. Also, the Key ring-necked snake does not occur across different ecosystems or have access to different systems in which to adapt. Therefore, the Key ring-necked snake has a narrow breadth of genetic and environmental diversity within and among populations.</P>
                <HD SOURCE="HD2">Rim Rock Crowned Snake—Population and Species Needs</HD>
                <P>As part of the population needs assessment for the rim rock crowned snake, we identified and described the most influential factors (available prey, water, refugia, and suitable habitat) representing the individual and population needs for the species.</P>
                <P>
                    The diet of rim rock crowned snakes probably consists of centipedes, insects, and other small invertebrates, similar to the diet of other members of the genus 
                    <E T="03">Tantilla.</E>
                     Prey eaten by wild and captive 
                    <E T="03">T. coronata</E>
                     include tenebrionid beetle larvae, earthworms, snails, centipedes, spiders, cutworms, wireworms, and termites and their larvae (Ernst and Ernst 2003, pp. 353-355). We do not know what the prey-related requirements (abundance, variety, range, etc.) are to maintain viability.
                </P>
                <P>
                    Water is essential for the survival of the rim rock crowned snake. We have no specific information on the amount of water the species requires; however, similar species of 
                    <E T="03">Tantilla</E>
                     tend to survive in warm, moist conditions where water is intermittently available. Small amounts of water can be found in depressions and holes in the limestone substrate, which fill from rainfall or overnight dew. The extensive network of holes, tunnels, and cavities in the limestone substrate may also lead to more permanent water sources. During times of drought, these sources may become scarce, and the snake may need to seek out other freshwater sources. The rim rock crowned snake must have multiple freshwater sources in case one becomes depleted, contaminated, or unavailable. If all local water sources within a snake's home range become dry, the snake may need to expend more energy and time in search of new water sources.
                </P>
                <P>Rim rock crowned snakes require refugia to escape and hide from predators and to regulate body temperature. Refugia in pine rocklands and rockland hammock are provided by holes and crevices in the limestone, piles of rock rubble, and pockets of organic matter accumulating in solution holes and shallow depressions in the limestone (Enge et al. 2003, pp. 27-28). Snakes are ectothermic organisms, which require an external heat source for homeostasis. Snakes can also become too hot, consequently leading to desiccation. Therefore, a warm, moist habitat, typically subterranean or shielded from the sun, is likely a preferred refugium to escape from predators and to properly maintain homeostasis.</P>
                <P>We do not know how much suitable habitat and habitat connectivity is required to maintain the rim rock crowned snake's viability. An observation of a rim rock crowned snake was recorded (Hines 2011, pp. 352-356) at the Barnacle Historic State Park in Coconut Grove, Miami, Florida, a site that consists of only 6 ac (2 ha) of rockland hammock habitat. We do not know if pine rocklands or rockland hammocks are more suitable for the rim rock crowned snake, as they have been observed in both. Home range is defined as the area a snake traverses for its normal daily activities (Burt 1943, pp. 350-351; Miller 2008, p. 16). The rim rock crowned snake's home range size is unknown.</P>
                <P>Rim rock crowned snake populations need abundant individuals within habitat patches of adequate area and quality to maintain survival and reproduction despite disturbance. Therefore, a strong correlation to habitat availability and rim rock crowned snake populations can be assumed, but not at a level of certainty in which the presence of suitable pine rocklands or rockland hammock habitat can be used as a surrogate for rim rock crowned snake presence.</P>
                <P>Despite these uncertainties, data indicate that the limited and patchy distribution of occupied suitable habitat is negatively affecting population resiliency across the species' range. The majority of suitable rim rock crowned snake habitat in southeastern Miami-Dade County and the Florida Keys has been developed and is highly impacted by human activities. Additionally, the Florida Keys are limited naturally in their land area.</P>
                <P>Dispersal of individual snakes among the fragmented suitable habitat in Miami-Dade County could occur, but if it does, it is expected to be on a limited and random basis. The level to which immigration and emigration via dispersal influence population resiliency and extinction risk is unknown. Aboveground dispersal may not be as effective in a highly urbanized environment. The limited size of the suitable habitat and the distance of urban barriers between them suggest that dispersal is unlikely to currently influence the population dynamics. Because the underlying rock ridge throughout Miami-Dade County is porous, there is potential for individuals to use it as a means of dispersal to avoid urban barriers. If used, it could allow more successful random dispersal of individual snakes than aboveground means. However, the extent of influence of dispersal remains largely unknown.</P>
                <P>In the Florida Keys, passive dispersal of individual snakes among keys may be occurring on a very limited and random basis. The level to which immigration and emigration via dispersal acts as a factor towards population resiliency and prevention against extinction for this species is unknown. Many of the Florida Keys have yet to be searched, but if occupied, they could act as “stepping stones” in the random dispersal of individual snakes. However, the limited size of the Florida Keys and the distance between them means that dispersal is not likely; thus, it currently has a limited influence on population dynamics.</P>
                <P>No recent surveys have been conducted for the rim rock crowned snake; therefore, the true spatial distribution of populations throughout Miami-Dade County and the Florida Keys is unclear, and our current understanding of the species' distribution is primarily based on historical records. Consequently, this species may very well occur in areas in Miami-Dade County or the Florida Keys other than those reported, and the importance of the other areas (other than those with identified populations) to the overall species' resiliency is unclear. To date, no genetic analysis has been conducted on the rim rock crowned snake. Consequently, it is unknown whether or not genetically discrete populations exist in the upper or lower Florida Keys or Miami-Dade County where this species has been historically reported. No information exists on the abundance or growth rate of these populations.</P>
                <P>
                    Having multiple populations distributed across the landscape offers better redundancy than if the populations all occur in very close proximity and are vulnerable to stressors with the same intensity or timing. For example, the entire species is vulnerable to the effects of a hurricane passing over south Florida. Limited acreage of suitable habitat remains in Miami-Dade County and the Florida Keys; consequently, there is limited opportunity for natural expansion, and movement of the species to new areas is not probable.
                    <PRTPAGE P="45706"/>
                </P>
                <P>Species redundancy for the rim rock crowned snake is provided by individuals being distributed across Miami-Dade County and the upper and lower Florida Keys. Despite a level of redundancy provided by the discrete populations and individuals found dispersed across Miami-Dade County and the Florida Keys, the rim rock crowned snake has limited redundancy because of its small endemic range. For some large-scale stressors (storm events and hurricanes) that affect southeastern Florida and the Florida Keys, the species is vulnerable to the timing and intensity of impacts. Overall, the rim rock crowned snake needs multiple, interconnected, healthy populations across its range.</P>
                <P>Given the low likelihood of dispersal between islands, we considered islands in the Florida Keys as separate rim rock crowned snake populations. Specifically, populations in the upper Keys, north Key Largo, south Key Largo, Plantation Key, Upper Matecombe Key, Lower Matecombe Key, and Marathon (Grassy and Vaca Keys) are considered separate populations. In the lower Keys, Big Pine Key and Key West are considered separate populations. Similarly, due to physical barriers (roads, structures, canals, etc.), we consider the Miami-Dade County locations as distinct populations: Arch Creek Park, Barnacle Historic State Park, DLC, Ned Glenn Nature Preserve, Rockdale Pineland Preserve, and Richmond Pine Rocklands Tract (Zoo Miami).</P>
                <P>With regard to representation, the rim rock crowned snake occurs across a narrow geographic and ecological range. Consequently, there is no variation across distance or elevation for the rim rock crowned snake as there is for other wider-ranging species. The rim rock crowned snake has not been found to occur across different ecosystems, and it is not known if it disperses farther from the limestone rock ridge in southeastern peninsular Florida.</P>
                <P>As mentioned previously, no genetic analyses have been conducted on the rim rock crowned snake. Hence, the genetic diversity of this species is unknown, and there is little environmental diversity beyond the two habitat types where the species is found. Similarly, it is unclear if there are morphological or behavioral differences between different rim rock crowned snake populations.</P>
                <HD SOURCE="HD2">Threats Discussion</HD>
                <P>Following are summary evaluations of six threats analyzed in the SSAs for both the Key ring-necked snake and the rim rock crowned snake: Development (Factor A), fire suppression (Factor A), sea level rise (Factor A), saltwater intrusion (Factor A), shifts in seasonal patterns of rainfall and temperature (Factor A), and storm events (Factor A). We also evaluate existing regulatory mechanisms (Factor D) and ongoing conservation measures.</P>
                <P>In the SSAs, we also considered four additional threats: Overutilization due to recreational, educational, and scientific use (Factor B); disease (Factor C); predation (Factor C); and invasive species (Factor E). We concluded that, as indicated by the best available scientific and commercial information, these threats are currently having little to no impact on either the Key ring-necked snake or the rim rock crowned snake and their habitats, and thus their overall effect now and into the future is expected to be minimal. Therefore, we will not present summary analyses of those threats in this document, but we consider them in our cumulative assessment of impacts to the species. For full descriptions of all threats and how they impact the species, please see both SSA reports (Service 2023a, pp. 9-21; Service 2023b, pp. 25-40).</P>
                <HD SOURCE="HD2">Key Ring-Necked Snake—Current Threats and Condition</HD>
                <P>For the Key ring-necked snake, we considered threats and population resiliency on the scale of individual islands.</P>
                <HD SOURCE="HD3">Development</HD>
                <P>The Key ring-necked snake inhabits a variety of rockland habitat in Monroe County that has been and is still desirable for residential and commercial development (Service 1999, p. 3-174). Over half of the rockland habitat within the Florida Keys has been and continues to be altered, degraded, or destroyed for residential and commercial development (Hodges and Bradley 2006, pp. 8-9). Urban development and historical land use for agriculture have greatly reduced the extent of pine rocklands in the Florida Keys. Additionally, the quality of some pine rocklands has declined in the Keys because the remaining habitat patches are isolated and confined by surrounding urban development. Although individual snakes show some tolerance of habitat alteration, development and conversion of suitable snake habitat can impact all life stages of the Key ring-necked snake. In addition to direct impacts from loss of soils for nesting and movement and the loss of shelter and shade for adult snakes, ground cover and availability of invertebrate food sources can be reduced. Indirectly, connectivity is further decreased, hindering the finding of mates and the dispersal to new locations by juveniles.</P>
                <P>Currently, total habitat area potentially available to Key ring-necked snakes in the lower Florida Keys consists of 1,899 ac (769 ha) of pine rocklands habitat and 3,806 ac (1,540 ha) of rockland hammock habitat (Subedi et al. 2022, pp. 6-7). While the hammock habitats are widespread across many islands in various sizes, pine rocklands remain on only five islands in the lower Florida Keys. One of these islands, Big Pine Key, has 1,480 ac (599 ha) (78 percent) of total pine rocklands area, while other Keys (Little Pine Key, No Name Key, Cudjoe Key, and Sugarloaf Key) contain only small areas of hardwood-invaded pine rocklands. The Florida Keys Carrying Capacity Study conducted in 2003 (Monroe County 2016, entire), concluded that development in the Florida Keys has surpassed the carrying capacity of upland habitats to maintain their ecological integrity, that any further development in the Florida Keys would exacerbate secondary and indirect impacts to remaining habitat, and that any further urbanization in areas dominated by native vegetation would exacerbate habitat loss and fragmentation.</P>
                <P>
                    Some habitat protections are currently in place for the Key ring-necked snake. In 2006, Monroe County implemented an HCP for Big Pine Key and No Name Key that incorporates guidelines and recommendations from the 2003 study. The primary goal of the HCP is to maintain and implement a system that directs future growth to meet goals, including to protect natural resources and to encourage a compact pattern of development. Subsequently, future development on these islands must meet the requirements of the HCP. Furthermore, to fulfill the HCP's mitigation requirement, Monroe County actively acquired parcels of high-quality habitat for listed species and managing them for conservation, including pine rocklands habitat on Big Pine Key and No Name Key. This HCP expired on June 30, 2026. In coordination with Monroe County, the Service is incorporating provisions from the HCP into an existing FEMA flood management BO. The BO will provide the same habitat protections as the HCP and the County will continue to acquire parcels of land for listed species (Service 2026, entire). Although the Key ring-necked snake was not a covered species under this HCP, we expect the habitat protections afforded by the HCP and the BO to provide the Key ring-
                    <PRTPAGE P="45707"/>
                    necked snake some protection from development.
                </P>
                <P>Suitable habitat for the Key ring-necked snake is protected within preserves such as the Florida Keys National Wildlife Refuge Complex. The complex spans two Key ring-necked snake populations on No Name Key and Big Pine Key. Overall, 4,711.36 ac (1,906.62 ha) (82.6 percent) of pine rocklands and rockland hammock habitats in the lower Keys are protected or under conservation (Florida Natural Areas Inventory (FNAI) 2019, unpaginated). The remaining suitable habitat for the Key ring-necked snake is extremely vulnerable to development. Other than these protections for suitable habitat, the existing regulatory mechanisms and conservation measures do not address the impacts of development.</P>
                <P>The effects of development have the potential to reduce individual survival of Key ring-necked snakes and, therefore, may decrease population resiliency. Resiliency may be further reduced due to loss of connectivity between populations, both as dispersal within populations as they become fragmented and dispersal between occurrences on individual islands. Similarly, because the Key ring-necked snake is endemic to only a few lower Florida Key islands, losing even a few populations to the effects of development would result in a substantial reduction in subspecies redundancy. The Monroe County HCP may prevent further development of pine rocklands, although population resiliency would continue to decline as habitats remain degraded due to impacts associated with existing development.</P>
                <HD SOURCE="HD3">Fire Suppression</HD>
                <P>In addition to historical loss of habitat via urban development and agriculture, the quality of pine rocklands has declined due to fire suppression. Further, the quality of some pine rocklands has declined in the Keys because they are isolated and confined by surrounding urban development that restricts the use of prescribed fire, which is the principal management tool. Prescribed fire must be periodically introduced to sustain the pine rocklands community structure. In the absence of fire, pine rocklands are invaded by many of the species found in hardwood hammocks, they lose their herbaceous flora, and they move along a successional trajectory toward hammock (Service 1999, pp. 3-173). These rockland hammocks are generally present where pine rocklands were not burned for a long period of time, leading to pine rocklands fragmentation. This fragmentation in turn increases the risk of invasion by exotic vegetation along the interface with disturbed or developed areas, further altering, degrading, or destroying suitable habitat for the Key ring-necked snake.</P>
                <P>Although Key ring-necked snakes occur in areas where fire has been suppressed, pine rocklands habitat quality is reduced by lack of fire. Thus, fire suppression has the potential to reduce population resiliency through ongoing habitat degradation.</P>
                <HD SOURCE="HD3">Effects of Sea Level Rise, Saltwater Intrusion, Shifts in Seasonal Patterns of Rainfall and Temperature, and Storm Events</HD>
                <P>The predominant threats currently affecting the Key ring-necked snake and its habitat are sea level rise, saltwater intrusion, shifts in seasonal patterns of rainfall and temperature, and storm events (Service 2023a, pp. 23-28). The entire Florida Keys archipelago is being affected by increases in sea level, saltwater intrusion, increases in tide and tidal flooding, and shifts in seasonal climate patterns.</P>
                <P>
                    <E T="03">Sea level rise</E>
                    —The Key ring-necked snake is vulnerable to current and predicted sea level rise across its entire range because it is located only in the Florida Keys, where the effects of increasing sea levels, higher tidal surges, increased coastal and inland flooding, and saltwater intrusion are currently being experienced (Benedict et al. 2018, pp. 9, 13, 31, 7-i; Service 2019, p. 1). The Florida Keys are among the most vulnerable areas to the effects of sea level rise due to their low mean elevation of less than 4 ft (1.2 m) (Service 2019, p. 9). Consequently, the lowest parts of the Florida Keys are highly susceptible to flooding, with parts of the islands farther upland at risk of inundation and saltwater intrusion.
                </P>
                <P>Global sea level has increased by 8 to 9 in (0.20 to 0.23 m) since 1880, with the rate of increase doubling over the past 20 years (Service 2017, p. 5). From 1913 to 2018, the mean high-water line on Key West rose 0.09 in (0.23 cm) per year (NOAA 2019, unpaginated; Service 2023a, figure 3). On Vaca Key, sea levels rose 0.14 in (0.36 cm) per year between 1971 (start of data collection) and 2018 (NOAA 2019, unpaginated; Service 2023a, figure 3).</P>
                <P>Recent analysis is now indicating an accelerated rate of sea level rise for the eastern United States above that of the global rate (Park and Sweet 2015, entire; Sweet et al. 2017, pp. 39-41; Sweet et al. 2022, pp. 20-21). The accelerated sea level rise in south Florida is being attributed to shifts in the Florida Current due to added ocean mass brought on by the melting Antarctic and Greenland ice packs and thermal expansion from the warming ocean (Park and Sweet 2015, entire; Rahmstorf et al. 2015, entire; Deconto and Pollard 2016, p. 596; Sweet et al. 2017, pp. vi, 14, 15, 18; Sweet et al. 2022, pp. 22-23). For this reason, adding approximately 15 percent to global mean sea level rise projections is recommended for southeast Florida and the Florida Keys (Park and Sweet 2015, entire;). The most recent intermediate sea level scenario for the Florida Keys projects a 1.1 to 1.2 m (3.6 to 3.9 ft) increase by 2100 (Sweet et al. 2022, pp. 20-21).</P>
                <P>The effects of sea level rise are likely to impact the Key ring-necked snake both through loss of individuals during flooding events, and alteration of suitable habitat, causing a loss in population resiliency. If flooding is severe enough, it could extirpate entire populations, leading to a substantial loss of redundancy.</P>
                <P>
                    <E T="03">Saltwater intrusion</E>
                    —Higher tidal surges, coastal and inland flooding, and saltwater intrusion due to increasing sea levels are currently being experienced in the Florida Keys. In the Florida Keys, high tide flooding events primarily affect low-lying coastal areas and exposed pine rocklands and rockland hammock habitats. With worsening storms and extreme tidal events, storm surges along the Florida Keys will increase in frequency and severity over time and will impact habitats farther inland. Additionally, with continued increase in sea level rise, high tide/king tide flood frequencies are also expected to rapidly increase, with potentially severe damage to remaining rockland habitat. Pine rocklands species, particularly the dominant canopy species (slash pine), have little ability to tolerate saltwater (Subedi et al. 2022, p. 6).
                </P>
                <P>Salt from ocean water deposited during these high-water events has the potential to remain in place in and under the soil for long periods of time, which negatively impacts vegetative growth. For pine rocklands and rockland hammock forests to be sustained in such an ecosystem, nutrient cycling must be extremely efficient (that is, there can be little leaching of nutrients beyond the root zone).</P>
                <P>
                    In other instances, the effects of more powerful storm surges, rising sea levels, and saltwater intrusion of the islands' freshwater lens have contributed to the conversion and loss of pine forest habitat in the Florida Keys to more halophilic (salt-loving) vegetation such as mangroves and buttonwood 
                    <PRTPAGE P="45708"/>
                    (Alexander 1976, pp. 219-222; Ross et al. 1994, pp. 151-154). As discussed above in Background, a unique characteristic of the Florida Keys is the existence of a freshwater lens below each island that is critically important for humans, flora, fauna, and a variety of habitats. Consequently, pine rocklands habitat has already undergone a significant reduction in the Florida Keys due to sea level rise and saltwater intrusion (Ross et al. 1994, p. 154). Currently, some of these areas are occupied by halophytic (salt-tolerant) vegetation such as mangroves and buttonwood (Alexander 1976, pp. 219-222) owing to high tide flooding as a result of rising sea level but also due to saltwater intrusion of the islands' freshwater lens. Over time, further vegetation succession will result in halophytic vegetation dominance on the remaining land and more expansive estuaries across much of the island.
                </P>
                <P>Overall, saltwater intrusion from storm surge and flooding causes the loss of habitat, habitat conversion, and reduction in the capacity of freshwater storage and the freshwater resources relied upon by the Key ring-necked snake to maintain its thermoregulatory requirements. These effects will continue to result in the loss of suitable habitat, displacement landward to less suitable habitat, and the loss of individual Key ring-necked snakes.</P>
                <P>
                    <E T="03">Shifts in seasonal patterns of rainfall and temperature</E>
                    —In the United States, the average temperatures have increased by 1.3 to 1.9 degrees Fahrenheit (°F) (0.77 to 1.1 degrees Celsius (°C)) since recordkeeping began in 1895 (Service 2017, p. 2). The decade from 2000 to 2009 is documented as the warmest on record (Service 2017, p. 2). Since 1991, average temperatures in south Florida have increased 1.5 °F (0.83 °C) or more (Service 2017, p. 2).
                </P>
                <P>We presume that the normal range of temperatures in which activity occurs for the Key ring-necked snake is consistent with that which it has experienced in south Florida. Any continuously higher average number of hot days out of the Key ring-necked snake's optimum range or a permanent shift in average air temperature out of this range has the potential to cause physiological stress. In more extreme cases, once an ectothermic organism is exposed to a temperature outside of its activity temperature range, it is closer to reaching a critical thermal maximum/minimum, in which locomotion becomes uncoordinated and the animal loses its ability to escape conditions that will lead to its death (Zug et al. 2001, pp. 179-188). Key ring-necked snakes may become more vulnerable to situations involving critical thermal maximum when habitat loss and fragmentation limit its ability to move or find suitable microhabitats. Additionally, ambient temperature out of the optimal range will physically influence the environment of nests, which may modify incubation periods, embryo temperatures, egg survival, and hatching times. Physiological stress can also result in a variety of risks, including increased predation, reduced reproductive performance, and reduced foraging success.</P>
                <P>Precipitation patterns are also changing. Since 1900, annual average precipitation in south Florida has increased by 5 to 10 percent (Service 2017, p. 4). Shifts in seasonal rainfall events are also currently being documented (USGCRP 2018, pp. 745-808). The south Florida dry season (November through April) has become wetter, the rainy season (May through October) has become drier, and current projections show that this trend will continue. This will likely have detrimental effects on the Key ring-necked snake's seasonal feeding, breeding, and sheltering patterns. Heavy downpours are currently increasing and have especially increased over the last 30 to 50 years. The frequency and intensity of heavy downpours in the Florida Keys have increased by 27 percent since the 1970s (Service 2017, p. 4). Increased inland flooding is predicted during heavy rain events in low-lying areas. With worsening storms, storm surges along coastlines become stronger and push farther inland. Consequently, more powerful storm surges will exacerbate the effects of the increased sea level along the Florida Keys' shorelines.</P>
                <P>Currently, the existing regulatory mechanisms and conservation measures do not address the impacts of shifting seasonal patterns of rainfall and temperature. Although changes in seasonal weather patterns in south Florida have been documented (Service 2017, entire), direct impacts on the Key ring-necked snake's habitat have not been observed. However, with increased flooding events and sea level rise, the magnitude of this threat could increase into the future, decreasing population resiliency across the range of the subspecies.</P>
                <P>
                    <E T="03">Storm events</E>
                    —There has been a substantial increase in a number of Atlantic hurricane characteristics since the early 1980s, the period during which high-quality satellite data first became available. These include measures of intensity, frequency, and duration as well as the number of strongest (Category 4 and 5) storms (Walsh et al. 2014, p. 20). Strong rainstorms, tropical storms, and hurricanes are all-natural parts of a tropical ecosystem. However, although these events are common occurrences, the vulnerability of Key ring-necked snake populations increases as the quantity and quality of their habitat is compromised. This is especially true when the frequency of storm surges increases without adequate time for habitats to recover.
                </P>
                <P>Hurricane activity has been above normal since the Atlantic Multi-Decadal Oscillation (the natural variability of the sea surface temperature in the Atlantic Ocean) went into its warm phase around 1992. The incidence of tropical storms in southeast Florida (including the Keys) is above normal, and this frequency is expected to increase (Sweet et al. 2017, pp. 39-41; Sweet et al. 2022, pp. 20-21).The intensity of the storms is expected to increase by approximately 20 percent (Service 2017, p. 7), which will result in larger tidal storm surge and greater destruction than historically documented. Ecosystem resiliency is reduced when impacts by extreme events such as floods or storms occur (Service 2017, p. 7). Saltwater intrusion from storm surge and flooding results in displacement landward to less suitable habitat and the loss of individual Key ring-necked snakes. The limestone substrate, on which snakes rely for cover, prey, and nesting, will become flooded more frequently, resulting in a higher frequency and longevity of displacement and stress.</P>
                <P>Information on how strong storms impact this subspecies is lacking. However, information does exist on the impacts to habitat from hurricanes and other strong storms that have occurred in the region, providing some insight of the potential damage and loss to the Key ring-necked snake from such storms. These events likely disturb and reduce the quantity and quality of their resources (such as food and cover) and may do so significantly depending upon the severity and proximity of the storm center. This is particularly true when storm surges bring in nutrient-rich sediment that exacerbates soil accretion, salt deposition, and vegetation loss (Dingler et al. 1995, p. 296; Jackson et al. 1995, p. 321).</P>
                <P>
                    Additionally, saltwater surges and short-term flooding of upland habitats from strong storms and hurricanes in the Keys have the potential to kill some Key ring-necked snakes and their prey. In 2005, Hurricane Wilma (Category 3) passed just north of the Florida Keys, causing maximum storm tides 5 to 6 ft (1.5 to 1.8 m) above mean sea level in Key West and flooding approximately 
                    <PRTPAGE P="45709"/>
                    60 percent of the city. On Boca Chica and Big Pine Keys, Hurricane Wilma caused a storm surge of 5 to 8 ft (1.5 to 2.4 m) (Kasper 2007, pp. 10-16). In 2017, the combined effect of storm surge and the tide from Hurricane Irma produced maximum inundation levels of 5 to 8 ft (1.5 to 2.4 m) above ground level for portions of the lower Florida Keys from Cudjoe Key eastward to Big Pine Key and Bahia Honda Key, near and to the east of where Irma's center made landfall as a Category 4 storm (Cangialosi et al. 2018, pp. 8-9). A storm surge of 13 ft (4 m) would completely submerge Big Pine Key (Lopez et al. 2004, p. 284).
                </P>
                <P>Currently, the existing regulatory mechanisms and conservation measures do not address the impacts of storm events. The effects of storm events have the potential to reduce individual survival, which could then lead to a reduction in the snake's resiliency and redundancy. While past storms have not resulted in complete inundation of islands, an increase in the intensity and frequency of storms or a direct hit from a strong hurricane could cause significant reductions in subspecies numbers, further limiting the subspecies' population resiliency and making it even more vulnerable to all other threats.</P>
                <HD SOURCE="HD3">Summary of Threats</HD>
                <P>Multiple threats are currently impacting the Key ring-necked snake and its habitat. Although individual populations are less likely to be completely lost to development, ongoing habitat degradation associated with urbanization of both pine rocklands and rockland hammock habitat and fire suppression of pine rocklands are continuing to reduce the availability of the features that individual Key ring-necked snakes need for feeding, breeding, and sheltering, thus decreasing population size and, therefore, resiliency. Because of the current barriers to dispersal from development, recolonization is unlikely after a population is isolated.</P>
                <P>Even minor threats that impact just a few individuals in a population need to be considered for their additive effects. For example, threats like predation and invasive species may have low impacts on their own, but combined with impacts of other threats, they are further reducing already low numbers of Key ring-necked snakes. These minor threats were considered cumulatively for their effects to the Key ring-necked snake and, while they may reduce the numbers for some individual populations, were currently found not to impose negative effects at the population level.</P>
                <P>Additionally, various threats can originate from a similar cause but produce interdependent effects on the subspecies. For example, greenhouse gas emissions increase the rate and severity of climatic changes, which act in combination as threats on the subspecies. These include sea level rise, seasonal shifts in timing and amounts of precipitation, shifts in temperature patterns, and increased storm intensities that affect the subspecies. Sea level rise reduces available habitat. Because the average high-water line is now higher than historical levels, areas not typically flooded are now flooded on a more regular basis. The rate of sea level rise in the Florida Keys—specifically at NOAA's KYWF1-8724580 Key West ocean data buoy—had been an average rate of 0.09 inch per year (2.3 mm per year) prior to the previous decade (1990s; NOAA 2016, unpaginated). In the early 2000s, sea level rise began to accelerate exponentially and was estimated at 0.3 inch per year (7.6 mm per year) in 2016 (NOAA 2016, unpaginated).</P>
                <P>The severity of threats may also be exacerbated by the Key ring-necked snake's limited distribution and small population size. There are no records that demonstrate that the Key ring-necked snake was ever distributed beyond the lower Florida Keys. Thus, it has, and probably has always had, low natural redundancy. Currently, it is found only on seven lower Florida Key islands. Rarity is not in itself a threat; however, small population size can exacerbate the effects of ongoing threats, making the subspecies more vulnerable to extirpation. As discussed previously, the Key ring-necked snake is a narrow endemic, meaning it has naturally low redundancy to help it buffer against catastrophic events.</P>
                <P>Currently, the existing regulatory mechanisms and conservation measures do not address the impacts of sea level rise and saltwater intrusion. As mentioned above, sea level has increased exponentially since the early 2000s (NOAA 2016, unpaginated). Therefore, the effects of saltwater intrusion have likely degraded existing habitat that supports the Key ring-necked snake, leading to reductions in the features (such as freshwater) that the subspecies needs, and thus reducing population resiliency. The effects of saltwater intrusion are primarily habitat-based, but some individual snakes could also be lost. Signs of saltwater intrusion impacts are currently documented on Big Pine Key, where pine trees have been replaced by salt-tolerant mangrove. The magnitude of this threat has the potential to greatly increase in the future with the projected severity of sea level rise.</P>
                <HD SOURCE="HD2">Cumulative Effects</HD>
                <P>We note that, by using the SSA framework to guide our analysis of the scientific information documented in the SSA reports, we have analyzed the cumulative effects of identified threats and conservation actions on the species. To assess the current and future condition of the species, we evaluate the effects of all the relevant factors that may be influencing the species, including threats and conservation efforts. Because the SSA framework considers not just the presence of the factors, but to what degree they collectively influence risk to the entire species, our assessment integrates the cumulative effects of the factors and replaces a standalone cumulative-effects analysis.</P>
                <HD SOURCE="HD3">Current Condition of Populations</HD>
                <P>To characterize the current status of Key ring-necked snake populations, we assigned each stressor as low, moderate, or high impacts to the subspecies based on criteria (see table 1, below); these impacts are occurring at the individual (moderate risk) and population (high risk) levels. The risk of each threat, using the risk scoring criteria in tables 1 and 2, was applied to each population and used to assess the overall population condition (see table 3, below). More specifically, point values were summed for each threat (listed in table 1, below) to determine an overall population condition score (scoring criteria listed in table 2, below) and summarized to convey the current condition of each population of the subspecies (see table 3, below). An area with a high risk of threat as described in tables 1 and 2 will result in low population condition in table 3, and a low risk of threat will result in a high population condition. Based on the cumulative risk of threats to each population, we then estimated the current condition of each population and the likelihood of persistence of each population (scoring criteria listed in table 2, below). We defined populations in the SSA report and this rule by the boundary of each island, as we lack information on possible population divisions within each island or about distribution between islands.</P>
                <P>
                    Overall, all populations of the Key ring-necked snake are in low condition and reduced from historical condition, with ongoing effects from habitat degradation, fire suppression, sea level rise, and saltwater intrusion. Although 
                    <PRTPAGE P="45710"/>
                    populations are currently extant on all known islands throughout the species' range, the species is only found on seven islands in a similar ecological setting. Thus, species representation and redundancy are low.
                </P>
                <GPOTABLE COLS="4" OPTS="L2,nj,p7,7/8,i1" CDEF="s50,r50,r100,r100">
                    <TTITLE>Table 1—Current Conditions Based on Risk of Threats</TTITLE>
                    <BOXHD>
                        <CHED H="1">Threat</CHED>
                        <CHED H="1">Low risk (1)</CHED>
                        <CHED H="1">Moderate risk (2)</CHED>
                        <CHED H="1">High risk (3)</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Development</ENT>
                        <ENT>Development occurrence protected by land management plan</ENT>
                        <ENT>The level of development would affect suitable habitat and displace some individual snakes, but not at an extent to affect snake populations</ENT>
                        <ENT>A significant amount of suitable habitat would be lost due to development such that snake populations would be impacted.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Disease</ENT>
                        <ENT>No impacts</ENT>
                        <ENT>Some individual snakes would exhibit signs of disease, but impacts would not be widespread enough in the snake population to affect resiliency</ENT>
                        <ENT>Disease would be prevalent in populations across the range of the subspecies, decreasing population resiliency.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Fire suppression in pine rocklands</ENT>
                        <ENT>Ongoing, regular fire maintenance</ENT>
                        <ENT>The level of fire suppression would affect some suitable habitat and displace some individual snakes, but not at an extent to affect population resiliency</ENT>
                        <ENT>A significant amount of suitable habitat would be lost due to fire suppression such that snake population resiliency would be impacted.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Predation</ENT>
                        <ENT>No impacts</ENT>
                        <ENT>Some individual snakes would be predated, but impacts would not be widespread throughout snake populations</ENT>
                        <ENT>Predation would be prevalent in populations across the range of the subspecies, decreasing population resiliency.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Invasive species</ENT>
                        <ENT>No impacts</ENT>
                        <ENT>Invasive plants would not outcompete native plants to the extent that a significant amount of suitable snake habitat is altered. Nonnative fauna would outcompete some individual snakes for food, or prey on some snakes, but the effects would not be widespread in the snake population</ENT>
                        <ENT>Invasive plants would outcompete native plants, altering habitat so it is no longer suitable for the snake. Nonnative fauna may outcompete snakes for food or may prey on snakes such that populations are impacted.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Sea level rise</ENT>
                        <ENT>No impacts</ENT>
                        <ENT>Individual snakes will be affected by increasing sea levels, higher tidal surges, and increased coastal and inland flooding</ENT>
                        <ENT>The severity of increasing sea levels, higher tidal surges, and increased coastal and inland flooding would impact snake populations and possibly extirpate areas.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Saltwater intrusion</ENT>
                        <ENT>No impacts</ENT>
                        <ENT>Some individual snakes will be displaced by the frequency and severity of saltwater intrusion and its impact to suitable snake habitat</ENT>
                        <ENT>The frequency and severity of saltwater intrusion and its impact to suitable snake habitat would impact snake populations, decreasing population resiliency.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shifts in seasonal patterns of rainfall and temperature</ENT>
                        <ENT>No impacts</ENT>
                        <ENT>Individual snakes would be affected by the frequency and intensity in these seasonal patterns changes, but not to the extent that population resiliency would be affected</ENT>
                        <ENT>The frequency and intensity in these seasonal patterns changes would impact snake populations.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Storm events</ENT>
                        <ENT>No impacts</ENT>
                        <ENT>The intensity, frequency, and duration of storm events would be at a level in which the quantity and quality of individual snake needs are compromised, and some snakes would be displaced landward to less suitable habitat</ENT>
                        <ENT>The intensity, frequency, and duration of storm events would be at a significant level such that the quantity and quality of snake resources were reduced, and snake populations would be displaced.</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="2" OPTS="L2,nj,i1" CDEF="s75,12">
                    <TTITLE>Table 2—Risk and Overall Population Condition Scoring Criteria for Current Condition of Populations</TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Overall population
                            <LI>condition</LI>
                        </CHED>
                        <CHED H="1">
                            Risk of
                            <LI>threat</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">High (9-13 points)</ENT>
                        <ENT>1</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Moderate (14-18 points)</ENT>
                        <ENT>2</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Low (19-24 points)</ENT>
                        <ENT>3</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Point values for each threat (see table 1, above) were summed within an analysis area to determine the overall population condition score.</P>
                <GPOTABLE COLS="11" OPTS="L2,p7,7/8,i1" CDEF="s50,r30,r30,r25,r25,r25,r25,r25,r25,r25,r25">
                    <TTITLE>Table 3—The Risk of Threats and Their Effect on the Population Condition of the Key Ring-Necked Snake</TTITLE>
                    <BOXHD>
                        <CHED H="1">Area</CHED>
                        <CHED H="1">Development</CHED>
                        <CHED H="1">
                            Fire
                            <LI>suppression</LI>
                            <LI>of pine</LI>
                            <LI>rocklands</LI>
                        </CHED>
                        <CHED H="1">Disease</CHED>
                        <CHED H="1">Predation</CHED>
                        <CHED H="1">
                            Invasive
                            <LI>species</LI>
                        </CHED>
                        <CHED H="1">
                            Sea level
                            <LI>rise</LI>
                        </CHED>
                        <CHED H="1">
                            Saltwater
                            <LI>intrusion</LI>
                        </CHED>
                        <CHED H="1">
                            Shifts in
                            <LI>seasonal</LI>
                            <LI>patterns of</LI>
                            <LI>rainfall and</LI>
                            <LI>temperature</LI>
                        </CHED>
                        <CHED H="1">Storms</CHED>
                        <CHED H="1">
                            Population
                            <LI>condition</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Big Pine Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Cudjoe Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Key West</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Little Torch Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Middle Torch Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">No Name Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Stock Island</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The subspecies was analyzed by island. Note that the first nine columns rank the condition of threats, while the final column ranks current population condition. Thus, multiple columns of high threat risk result in low overall population condition.</P>
                <HD SOURCE="HD2">Rim Rock Crowned Snake—Current Threats and Condition</HD>
                <P>
                    For the rim rock crowned snake, we considered threats at a larger scale in three general areas: eastern Miami-Dade County, the upper Florida Keys, and the lower Florida Keys, and on individual islands where data were available. We also considered population resiliency in isolated habitat patches in the Miami-
                    <PRTPAGE P="45711"/>
                    Dade area and on individual islands in the Florida Keys. We considered North Key Largo and Key Largo as two separate populations due to the distances between occurrences and due to several barriers to movement.
                </P>
                <HD SOURCE="HD3">Development</HD>
                <P>The rim rock crowned snake inhabits upland rockland habitat (pine rocklands and rockland hammock) that is also desirable for residential and commercial development (Service 1999, p. 3-174). Urban development and agriculture have greatly reduced the extent of pine rocklands and rockland hammock habitat in eastern Miami-Dade County and the Florida Keys. Additionally, the quality of some pine rocklands has declined in the Keys because the remaining habitat patches are isolated and confined by surrounding urban development. Individual rim rock crowned snakes are occasionally documented in roadsides, vacant lots, trash piles, and pastures with shrubby growth and slash pines (FWC 2011, pp. 2-3; Hines 2011, pp. 352-356), but it is unknown whether these individuals are tolerating urban conditions or have been displaced. However, development and conversion of rockland habitat can impact all life stages of the rim rock crowned snake due to direct habitat loss and mortality. In addition to direct impacts from loss of soils for nesting and movement, ground cover and availability of invertebrate food sources can be reduced. Loss of habitat reduces shelter and shade for adults and decreases connectivity, thereby hindering dispersal by juveniles and finding of mates.</P>
                <P>Extensive land clearing for human population growth, development, and agriculture in Miami-Dade and Monroe Counties has altered, degraded, or destroyed thousands of acres of suitable habitat for rim rock crowned snakes. Throughout south Florida, development and agriculture have reduced pine rocklands habitat to approximately 3 percent of historical levels. Currently, the total habitat area available in Miami-Dade County is approximately 2,275 ac (921 ha) of pine rocklands habitat and 609 ac (247 ha) of rockland hammock habitat, not including Everglades National Park (where the rim rock crowned snake has never been found), or less than 10 percent of the historical extent of this habitat. In the lower Florida Keys, the total area of pine rocklands habitat is approximately 1,899 ac (769 ha), and the total area of rockland hammock habitat is approximately 3,806 ac (1,540 ha), or less than half of the historical extent of this habitat. While the hammock habitats are widespread across many islands in various sizes, pine rocklands remain on only five islands in the lower Florida Keys and none of the upper Florida Keys. The total area covered by rockland hammock in the upper Florida Keys is 7,006 ac (2,835 ha).</P>
                <P>Some habitat protections are currently in place for the rim rock crowned snake. Starting in 1990, Miami-Dade County's EEL program began acquiring pine rocklands and other natural areas to preserve and protect them from development. Once acquired, the EEL program funds land management to maintain and protect the habitat. Since the program's inception, more than 1,500 ac (607 ha) of pine rocklands have become EEL preserves (Miami-Dade County 2019, unpaginated). Rim rock crowned snakes have been found at four EEL preserves.</P>
                <P>
                    Additionally, Monroe County implemented an HCP for Big Pine and No Name Keys starting in 2006. In 2007, a rim rock crowned snake was observed on Big Pine Key (Hines 2011, p. 353). Subsequently, development on these islands has to meet the requirements of the HCP in regard to future development. In order to fulfill the HCP's mitigation requirement, Monroe County has been actively acquiring parcels of high-quality habitat for listed species and managing them for conservation, including pine rocklands habitat on Big Pine and No Name Keys. As discussed in 
                    <E T="03">Key Ring-necked Snake</E>
                    —
                    <E T="03">Current Threats and Condition,</E>
                     the HCP expired on June 30, 2026, but the FEMA flood management BO will continue to provide habitat protections (Service 2026, entire). Although the rim rock crowned snake was not a covered species under this HCP, we still expect the habitat protections afforded by the HCP and the BO to provide the rim rock crowned snake some protection from development.
                </P>
                <P>Suitable habitat for the rim rock crowned snake is protected within Federal preserves such as Everglades National Park, Crocodile Lake National Wildlife Refuge, and the National Key Deer Refuge; however, the rim rock crowned snake has only been documented in the National Key Deer Wildlife Refuge and Crocodile Lake National Wildlife Refuge. Most of the other records are located on State, local government, or privately owned lands, which are all small fragments of suitable habitat. Extensive pine rocklands habitat is present in the Long Pine Key area of Everglades National Park. However, despite extensive survey efforts (Dalrymple et al. 1991, entire), no evidence of the rim rock crowned snake has been found in Everglades National Park.</P>
                <P>More than 90 percent of suitable rockland habitat for rim rock crowned snakes has been lost due to human development in south Florida (including the Florida Keys), meaning some populations (and thus redundancy) have already been lost. For example, rim rock crowned snakes were previously detected at sites in Miami near intersections of SW 27th Avenue and SW 24th Street, Old Cutler Road and Red Road, and U.S. Highway 1 and SW 154th Ave. There are also numerous historical records detected at locations in the greater Miami metropolitan area (Kendall, Coral Gables, Ludlum, Homestead Air Reserve Base). However, no rim rock crowned snakes have been found at these locations since the 1980s. Furthermore, extensive urbanization surrounding these remaining habitats reduces survival, rendering the species less able to withstand environmental and demographic stochasticity and disturbances (that is, reduced resiliency). Resiliency may be further reduced due to loss of connectivity between populations. Because the rim rock crowned snake is endemic to only the southeastern part of the Florida peninsula and the Florida Keys, losing even a few populations to the effects of development would result in a substantial reduction in species redundancy. However, most of the remaining habitat patches are protected, meaning few additional populations are likely to be extirpated due to development, although habitat degradation could result in continued decreases in population resiliency as the species' needs, such as prey and cover, are lost.</P>
                <HD SOURCE="HD3">Fire Suppression</HD>
                <P>
                    As discussed above under “Development,” urban development and historical conversion to agriculture has greatly reduced the extent of pine rocklands in southeastern Florida and the Florida Keys. The quality of remaining pine rocklands has declined because those areas are isolated by surrounding urban development that restricts the use of prescribed fire, which is the principal management tool for pine rocklands. Prescribed fire must be periodically introduced to sustain the pine rocklands community structure. In the absence of fire, pine rocklands are invaded by many of the species found in hardwood hammocks. They lose their herbaceous flora and move along a successional trajectory toward hammock (Service 1999, p. 3-173). These rockland hammocks are generally present where pine rocklands were not burned for a 
                    <PRTPAGE P="45712"/>
                    long period of time, creating more pine rocklands fragmentation. This fragmentation of pine rocklands in the South Florida and the Florida Keys increases the risk of invasion by exotic vegetation along the interface with disturbed or developed areas, further altering, degrading, or destroying suitable habitat for the rim rock crowned snake.
                </P>
                <P>Although rim rock crowned snakes can still persist in areas where fire has been suppressed, habitat quality is reduced by lack of fire. Thus, the effects of fire suppression in pine rocklands have the potential to reduce population resiliency through ongoing habitat degradation that impacts the rim rock crowned snake and its habitat.</P>
                <HD SOURCE="HD3">Effects of Sea Level Rise, Saltwater Intrusion, Shifts in Seasonal Patterns of Rainfall and Temperature, and Storm Events</HD>
                <P>The predominant threats currently affecting the rim rock crowned snake and its habitat come from sea level rise, saltwater intrusion, shifts in seasonal patterns of rainfall and temperature, and storm events. South Florida and the Florida Keys are being affected by increases in sea level, saltwater intrusion, increases in tidal flooding, and shifts in seasonal climate patterns.</P>
                <P>
                    <E T="03">Sea level rise</E>
                    —The rim rock crowned snake is vulnerable to current and predicted sea level rise and saltwater intrusion across its entire range because it is located only in south Florida. South Florida, including the Florida Keys, are among the most vulnerable areas to the effects of sea level rise due to their low mean elevation of less than 1.2 m (4 ft) (Service 2019, p. 9). Consequently, south Florida is highly susceptible to flooding, with lands farther upland at risk of inundation and saltwater intrusion. The effects of increasing sea levels, higher tidal surges, coastal and inland flooding, and saltwater intrusion are currently being experienced in south Florida and the Florida Keys (Benedict et al. 2018, pp. 9, 13, 31, 7-i; Service 2019, p. 1).
                </P>
                <P>
                    As discussed above in 
                    <E T="03">Key Ring-necked Snake—Current Threats and Condition</E>
                     under “Effects of Sea Level Rise, Saltwater Intrusion, Shifts in Seasonal Patterns of Rainfall and Temperature, and Storm Events,” 
                    <E T="03">Sea level rise,</E>
                     the Florida Keys and South Florida are experiencing higher levels of sea level rise than other parts of the globe, as well as higher tidal surges, increased coastal and inland flooding, and saltwater intrusion (Benedict et al. 2018, pp. 9, 13, 31, 7-i; Service 2019, p. 1).
                </P>
                <P>Consequently, pine rockland habitat has already undergone a significant reduction in the Florida Keys due to sea level rise (Ross et al. 1994, p. 154). As mentioned previously, some of these areas are currently occupied by halophytic (salt-tolerant) vegetation such as mangroves and buttonwood (Alexander 1976, pp. 219-222) owing to high tide flooding as a result of rising sea level but also due to saltwater intrusion of the islands' freshwater lens.</P>
                <P>The effects of sea level rise could impact the rim rock crowned snake by loss of individuals during flooding events, causing a loss in population resiliency. If flooding is severe enough, it could extirpate entire populations, particularly in the lower Florida Keys, leading to a substantial loss of redundancy of the species.</P>
                <P>
                    <E T="03">Saltwater intrusion</E>
                    —Higher tidal surges, coastal and inland flooding, and saltwater intrusion due to increasing sea levels are currently being experienced in south Florida and the Florida Keys. With worsening storms and extreme tidal events, storm surges along south Florida and the Keys will increase in frequency and severity over time and will impact habitats farther inland. As discussed above in 
                    <E T="03">Key Ring-necked Snake—Current Threats and Condition</E>
                     under “Effects of Sea Level Rise, Saltwater Intrusion, Shifts in Seasonal Patterns of Rainfall and Temperature, and Storm Events,” 
                    <E T="03">Saltwater intrusion,</E>
                     this threat will result in habitat degradation and the loss of individual snakes. For the rim rock crowned snake, these effects have been primarily felt in populations in the Florida Keys, although some coastal populations in eastern Miami-Dade County may also experience some small amounts of saltwater intrusion.
                </P>
                <P>Currently, the existing regulatory mechanisms and conservation measures do not address the impacts of saltwater intrusion. As mentioned above, sea level has increased exponentially since the early 2000s (NOAA 2016, unpaginated). The effects of saltwater intrusion have likely degraded existing habitat that supports the rim rock crowned snake in the Keys, leading to reductions in the habitat features (such as freshwater) that the species needs, and thus reducing population resiliency. The effects of saltwater intrusion are primarily habitat-based, but some individual snakes could also be lost as increasingly frequent flooding of underground refugia could make areas uninhabitable and displace individual snakes. Signs of saltwater intrusion impacts have been documented on Big Pine Key, where pine trees have been replaced by salt-tolerant mangrove. The magnitude of this threat has the potential to greatly increase with the projected future severity of sea level rise.</P>
                <P>
                    <E T="03">Shifts in seasonal patterns of rainfall and temperature</E>
                    —Rising greenhouse gases are resulting in increasing temperatures and shifting precipitation patterns, as discussed above in 
                    <E T="03">Key Ring-necked Snake—Current Threats and Condition</E>
                     under “Effects of Sea Level Rise, Saltwater Intrusion, Shifts in Seasonal Patterns of Rainfall and Temperature, and Storm Events,” 
                    <E T="03">Shifts in seasonal patterns of rainfall and temperature.</E>
                     Like the Key ring-necked snake, the rim rock crowned snake is a fossorial ectotherm and, therefore, dependent on gaining heat from its microhabitat or by coming into contact with the undersides of warm surfaces (for example, rocks) that are exposed to direct sunlight. As with the Key ring-necked snake, increased temperatures could result in a permanent shift in average air temperature out of the rim rock crowned snake's optimal range, causing physiological stress. Physiological stress can manifest into a variety of risks including predation, reduced performance, and reduced foraging success. Altered precipitation patterns could have detrimental effects on the seasonal feeding, breeding, and sheltering patterns for the rim rock crowned snake. Increased inland flooding is predicted during heavy rain events in low-lying areas. With worsening storms, storm surges along coastlines can become stronger and push farther inland. Consequently, more powerful storm surges will exacerbate the effects of the increased sea level along south Florida and Florida Keys' shorelines and could have impacts on rockland habitat.
                </P>
                <P>Currently, the existing regulatory mechanisms and conservation measures do not address the impacts of shifting seasonal patterns of rainfall and temperature. Although changes in seasonal weather patterns in south Florida have been documented (Service 2017, entire), direct impacts on the rim rock crowned snake or its habitat have not been observed. However, with increased flooding events associated with sea level rise, the magnitude of this threat could increase into the future, particularly for populations in the Florida Keys and coastal areas of Miami-Dade County, decreasing population resiliency.</P>
                <P>
                    <E T="03">Storm events</E>
                    —Changing patterns in hurricane activity are having similar effects to the rim rock crowned snake as to the Key ring-necked snake, as discussed above in 
                    <E T="03">Key Ring-necked Snake—Current Threats and Condition</E>
                     under “Effects of Sea Level Rise, 
                    <PRTPAGE P="45713"/>
                    Saltwater Intrusion, Shifts in Seasonal Patterns of Rainfall and Temperature, and Storm Events,” 
                    <E T="03">Storm events.</E>
                     The health of the rim rock crowned snake becomes vulnerable when the quantity and quality of resources (for example, food, cover/substrate) are compromised. This can happen in the case of storm surges and with an increase in the number of incidences of flooding (for example, being impacted repeatedly without time to recover). Saltwater intrusion from storm surge and flooding results in displacement landward to less suitable habitat and the loss of individual rim rock crowned snakes. The limestone substrate, which rim rock crowned snakes rely on for cover, prey, and nesting, will become more frequently flooded, creating a higher frequency and longevity of displacement and stress. Storm events disturb and reduce the quantity and quality of the resources for the rim rock crowned snake.
                </P>
                <P>
                    In 1992, Hurricane Andrew (Category 5) hit southern Miami-Dade County with sustained winds in excess of 145 miles per hour (233 kilometers per hour), impacting 99 percent of pine rocklands. Within 1 year of the event, many adult trees were dead, outbreaks of 
                    <E T="03">Ips</E>
                     beetles (including 
                    <E T="03">I. calligraphus, I. avulsus,</E>
                     and 
                    <E T="03">I. grandicollis</E>
                    ) had been reported, and two species of weevil (
                    <E T="03">Hylobius pales</E>
                     and 
                    <E T="03">Pachylobius picivorus</E>
                    ) had attacked juvenile trees. The outbreak has been attributed to the combination of wind damage and drought following a very dry spring, making the trees more susceptible to infestation. In a fall 1993 follow-up survey of Miami-Dade County pine rocklands, only 2 of 18 sites had living mature pines. The loss of the pines affected fire fuel loads while also making the habitat more susceptible to invasive species (Service 1999, p. 3-176), decreasing habitat suitability and negatively affecting the needs of the rim rock crowned snake.
                </P>
                <P>Existing regulatory mechanisms and conservation measures do not address storm events. The effects of storm events have the potential to reduce individual survival, which could lead to a reduction in the snake's resiliency and redundancy. While past storms have not resulted in complete inundation of islands, an increase in the intensity and frequency of storms has the potential to produce complete inundation of suitable snake habitat, and therefore possible extirpation of the species.</P>
                <HD SOURCE="HD3">Summary of Threats</HD>
                <P>Multiple threats are currently impacting the rim rock crowned snake at the individual and population level and affecting its habitat. The risk of each threat was based on the scoring criteria in tables 1 and 2, above, as applied to each population, and used to assess the overall population condition (see table 4, below).</P>
                <P>Although individual populations are less likely to be lost to development, ongoing habitat degradation associated with urbanization and fire suppression in pine rocklands are continuing to reduce the availability of the features that the rim rock crowned snake needs for feeding, breeding, and sheltering, thus decreasing population resiliency. Although a severe hurricane is unlikely to flood all populations at once, if a hurricane were to eliminate a majority of rim rock crowned snake populations, it would leave the remainder of the species significantly more vulnerable to other threats. Because of the current barriers to dispersal for populations in Miami-Dade County, recolonization is unlikely after a population is extirpated. Some populations, for example on Big Pine Key, may be able to recolonize extirpated sites occurring on the same Key because there are fewer barriers to dispersal due to lower levels of urbanization.</P>
                <P>Even minor threats that impact just a few individuals in a population need to be considered for their additive effects. For example, predation and invasive species may have low impacts on their own, but combined with impacts of other threats, they are further reducing already low numbers of rim rock crowned snakes.</P>
                <P>Additionally, various threats can originate from a similar cause but produce a set of interdependent effects on the species. For example, greenhouse gas emissions increase the rate and severity of climactic changes, which act in combination as threats on the species. These include sea level rise, seasonal shifts in timing and amounts of precipitation, shifts in temperature patterns, and increased storm intensities that affect the species. Sea level rise further reduces available habitat. Because the average high-water line is now higher than historical levels, areas not typically flooded are now flooded on a more regular basis.</P>
                <P>The severity of threats may also be exacerbated by the rim rock crowned snake's limited distribution and small population size. The rim rock crowned snake is not known to occur beyond the southeastern peninsula of Florida or the Florida Keys. Thus, it has, and probably has always had, low representation and redundancy. Currently, it is thought to exist in seven small and fragmented parcels in eastern Miami-Dade County, six islands in the upper Florida Keys, and two islands in the lower Florida Keys. Rarity is not in itself a threat; however, small population size can exacerbate the effects of ongoing threats, making the species more vulnerable to extinction.</P>
                <HD SOURCE="HD3">Current Condition of Populations</HD>
                <P>As with the Key ring-necked snake, to characterize the current status of the rim rock crowned snake, we assigned each stressor as low, moderate, or high impacts to the subspecies (see tables 1 and 2, above). We summarize the current condition of rim rock crowned snake populations in table 4. Overall, the current condition of populations in the Miami-Dade area is moderate, and the condition of populations in the Florida Keys is low.</P>
                <P>Given the species' limited distribution and limited ecological setting, representation is currently low. However, the species has moderate redundancy, as it has multiple populations distributed throughout the Miami-Dade area and the upper and lower Florida Keys.</P>
                <GPOTABLE COLS="11" OPTS="L2,p7,7/8,i1" CDEF="s50,r30,r30,r25,r25,r25,r25,r25,r25,r25,r25">
                    <TTITLE>Table 4—The Threat Risk and the Effect on the Current Condition of Rim Rock Crowned Snake Populations</TTITLE>
                    <BOXHD>
                        <CHED H="1">Population</CHED>
                        <CHED H="1">Development</CHED>
                        <CHED H="1">
                            Fire suppression
                            <LI>in pine</LI>
                            <LI>rocklands</LI>
                        </CHED>
                        <CHED H="1">Disease</CHED>
                        <CHED H="1">Predation</CHED>
                        <CHED H="1">Invasive species</CHED>
                        <CHED H="1">
                            Sea level
                            <LI>rise</LI>
                        </CHED>
                        <CHED H="1">
                            Saltwater
                            <LI>intrusion</LI>
                        </CHED>
                        <CHED H="1">
                            Shifts in seasonal
                            <LI>patterns of rainfall and</LI>
                            <LI>temperature</LI>
                        </CHED>
                        <CHED H="1">Storms</CHED>
                        <CHED H="1">
                            Population
                            <LI>condition</LI>
                        </CHED>
                    </BOXHD>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">MIAMI-DADE COUNTY</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Arch Creek</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Barnacle Historic State Park</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="45714"/>
                        <ENT I="01">Bill Sadowski</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">DLC</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Ned Glenn Nature Preserve</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Rockdale</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Richmond Pine Rocklands</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate.</ENT>
                    </ROW>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">UPPER FLORIDA KEYS</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">North Key Largo</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">South Key Largo</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Plantation Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Upper Matecombe Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Lower Matecombe Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Marathon</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>High</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">LOWER FLORIDA KEYS</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Big Pine Key</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Key West</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>High</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Note that the first nine columns rank the condition of threats, while the final column ranks population condition. Thus, multiple columns of high threat risk result in low population condition.</P>
                <HD SOURCE="HD2">Future Threats and Condition</HD>
                <P>To examine the potential future condition of the Key ring-necked snake and the rim rock crowned snake, four plausible future scenarios were developed. The scenarios focused on a range of conditions and projections for land development. The range of what is likely to happen in each scenario is described based on current condition and how resiliency, representation, and redundancy would be expected to change. The levels of certainty or uncertainty are addressed in each scenario. Given that there is uncertainty as to exact future trends of many threats, these future scenarios are meant to explore the range of plausible future scenarios and examine the snakes' response across the range of these conditions.</P>
                <P>
                    We define viability as the ability to sustain populations over time. For this to occur, a species must have a sufficient number and distribution of healthy populations to withstand changes in its biological (predators, disease) and physical (habitat loss) environment, environmental stochasticity (flooding, storm surge), and catastrophic events (hurricanes). In considering the future scenarios for the Key ring-necked snake and the rim rock crowned snake, we analyzed expected changes in development through 2070 based on the timeframe forecast in the urban planning documents (Zwick and Carr 2006, entire), shifts in seasonal patterns of rainfall and temperature (up through 2100), and sea level rise and saltwater intrusion from 2030 to 2100. The habitat in Miami-Dade County is forecasted to continue on the same trend up to 2100 as predicted from 2040 to 2080 (Subedi et al. 2022, p. 7). That said, we focused on changes that are expected over the next 20 to 60 years (
                    <E T="03">i.e.,</E>
                     by 2040 to 2080) because virtually no habitat is forecasted to be present in the lower Florida Keys by 2080. We do not have any information on future trends of other threats (disease, predation, invasive species, and collection). We chose four plausible scenarios to examine the potential impacts to Key ring-necked snake and rim rock crowned snake populations We determined the population condition (using criteria described above in table 1) given our future projections of threats.
                </P>
                <P>In order to understand the impacts of sea level rise and associated impacts on the Key ring-necked snake and the rim rock crowned snake, we contracted a study with the USGS to measure the potential future impacts on pine rocklands and rockland hammock habitat in the range of the Key ring-necked snake and the rim rock crowned snake (Subedi et al. 2022, entire). The study calculated the impacts of root zone salinization, regional sea level rise, and high tide effects on suitable habitat in Miami-Dade County and the Florida Keys in 10-year intervals between 2030 and 2100. Detailed descriptions of the study and its results are available in the SSA reports for the Key ring-necked snake and the rim rock crowned snake (Service 2023a, pp. 25-27; Service 2023b, pp. 43-47).</P>
                <HD SOURCE="HD2">Key Ring-Necked Snake—Future Threats and Condition</HD>
                <P>Because we determined that the current condition of the Key ring-necked snake is consistent with an endangered species throughout its range (see Determination, below), we are not presenting the results of the future scenarios in this rule. For more information on the future condition, future threats, and future scenarios for the Key ring-necked snake, please see the SSA report (Service 2023a, pp. 21-33).</P>
                <HD SOURCE="HD2">Rim Rock Crowned Snake—Future Threats and Condition</HD>
                <HD SOURCE="HD3">Development—Future Impacts</HD>
                <P>Future development is very likely to continue across the range of the rim rock crowned snake. Suitable habitat that is projected to be lost in all of these scenarios is privately owned and not currently under conservation.</P>
                <P>
                    Miami-Dade and Monroe Counties are not anticipated to undergo dramatic land use changes by 2070, because most land in these counties is already allocated to development, agriculture, or conservation (Carr and Zwick 2016, pp. 20-22). Of remaining pine rocklands and rockland hammock habitat, 76 percent in eastern Miami-Dade County, 79 percent in the upper Florida Keys, 
                    <PRTPAGE P="45715"/>
                    and 83 percent in the lower Florida Keys are protected or conserved (FNAI 2019, unpaginated). However, because such limited habitat area remains, even the loss of one population (particularly in the Miami-Dade area) could have a significant effect on the species.
                </P>
                <P>Of the remaining suitable habitat for rim rock crowned snake in Miami-Dade County, between 19 and 21 percent is expected to be lost to development by 2070 (Carr and Zwick 2016, pp. 20-22). Although the expected population growth in Monroe County in the Florida Keys is relatively modest, all vacant private lands not protected for conservation purposes are projected to be developed, including lands currently inaccessible for development, such as islands not attached to the Overseas Highway (U.S. Highway 1) (Zwick and Carr 2006, pp. 14-15). This development will have the potential to further reduce the amount of suitable habitat for the rim rock crowned snake.</P>
                <HD SOURCE="HD3">Fire Suppression—Future Impacts</HD>
                <P>Fire suppression has had considerable negative impacts on pine rocklands communities. The condition of some extant pine rocklands has declined and become degraded because of inadequate management or because they are isolated and confined by surrounding development that restricts the use of prescribed fire, which is the primary management tool. We do not expect the amount of prescribed burning to increase in the future, so we anticipate that existing habitat will continue to decline in quality and undergo habitat conversion to hammock habitats, particularly in eastern Miami-Dade County.</P>
                <HD SOURCE="HD3">Effects of Sea Level Rise, Saltwater Intrusion, Shifts in Seasonal Patterns of Rainfall and Temperature, and Storm Events—Future Impacts</HD>
                <P>In Florida, sea level is projected to rise between 1 ft (0.4 m) at the low end and up to 8.4 ft (3.2 m) at the high end by 2100 (Subedi et al. 2022, p. 4). Due to sea level rise, low-lying islands and coastal areas have increasingly become more vulnerable to high tide flooding, which is rapidly increasing in frequency, depth, and extent (Sweet et al. 2018, p. 3). In South Florida as well as the Keys, storm surge and high tide flooding events primarily affect low-lying coastal areas and exposed habitats such as pine rocklands and rockland hammocks. With continued increase in sea level rise, high tide intensities are also expected to rapidly increase, with potentially severe damage to remaining rockland habitat in the Florida Keys. Pine rocklands species, particularly the dominant canopy species (slash pine), have little ability to tolerate saltwater (Subedi et al. 2022, p. 6). As mentioned above, pine rocklands habitat has already undergone a significant reduction in the Florida Keys due to sea level rise (Ross et al. 1994, p. 154), and some of these areas affected by sea level rise in previous decades are now occupied by halophytic (salt-tolerant) vegetation such as mangroves and buttonwood (Alexander 1976, pp. 219-222). As discussed above in Background, a unique characteristic of the Florida Keys is the existence of a freshwater lens below each island that is critically important for humans, flora, fauna, and a variety of habitats.</P>
                <P>In eastern Miami-Dade County, a shallow layer of highly permeable limestone forms the unconfined Biscayne aquifer. Because this aquifer is unconfined, the top-most layer makes up the water table and directly interacts with natural and human-made bodies of water. The Biscayne aquifer merges with the floor of Biscayne Bay and the Atlantic Ocean, making it a coastal aquifer. Being a coastal aquifer, there is a potential for contamination from lowered water tables, primarily from over-pumping due to residential and commercial use, which could allow saltwater intrusion and could be exacerbated by sea level rise.</P>
                <P>The anticipated impacts of sea level rise and high tides for the rim rock crowned snake for our four future scenarios are shown below in tables 5 through 9. There is no table for pine rocklands habitat change in the upper Florida Keys, as there is no pine rocklands habitat there.</P>
                <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s50,12,12,15,17,17">
                    <TTITLE>
                        Table 5—Predicted Pine Rocklands Habitat Changes With an Intermediate (
                        <E T="01">I</E>
                        ) or Extreme (
                        <E T="01">E</E>
                        ) RSLR (Relative Sea Level Rise; Sweet et al. 2017, pp. vi, vii, 12, 21) and Moderate High Tide Effect (2.7 ft (0.82 
                        <E T="01">m</E>
                        )), in the Years 2040, 2060 and 2080, in Eastern Miami-Dade County
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Future
                            <LI>scenario</LI>
                        </CHED>
                        <CHED H="1">
                            RSLR
                            <LI>height</LI>
                            <LI>
                                (
                                <E T="01">m</E>
                                )
                            </LI>
                        </CHED>
                        <CHED H="1">Year</CHED>
                        <CHED H="1">
                            Current pine
                            <LI>
                                rocklands (
                                <E T="01">ac</E>
                                ) in
                            </LI>
                            <LI>Miami-Dade</LI>
                        </CHED>
                        <CHED H="1">
                            Area (
                            <E T="01">ac</E>
                            )of pine 
                            <LI>rocklands affected</LI>
                            <LI>by both RSLR </LI>
                            <LI>and high tide</LI>
                        </CHED>
                        <CHED H="1">
                            Percent of pine
                            <LI>rocklands affected</LI>
                            <LI>by both RSLR </LI>
                            <LI>and high tide</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>0.31</ENT>
                        <ENT>
                            2040 
                            <E T="02">I</E>
                        </ENT>
                        <ENT>2,275.02</ENT>
                        <ENT>4.3</ENT>
                        <ENT>0.19</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>0.54</ENT>
                        <ENT>
                            2060 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>13.6</ENT>
                        <ENT>0.60</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>0.83</ENT>
                        <ENT>
                            2080 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>51.5</ENT>
                        <ENT>2.26</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>0.60</ENT>
                        <ENT>
                            2040 
                            <E T="02">E</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>20.3</ENT>
                        <ENT>0.89</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s50,12,12,15,17,17">
                    <TTITLE>
                        Table 6—Predicted Rockland Hammock Habitat Changes With an Intermediate (
                        <E T="01">I</E>
                        ) or Extreme (
                        <E T="01">E</E>
                        ) RSLR (Relative Sea Level Rise; Sweet et al. 2017, pp. vi, vii, 12, 21) and Moderate High Tide Effect (2.7 ft (0.82 
                        <E T="01">m</E>
                        )), in the Years 2040, 2060 and 2080, in Eastern Miami-Dade County
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Future
                            <LI>scenario</LI>
                        </CHED>
                        <CHED H="1">
                            RSLR
                            <LI>height</LI>
                            <LI>
                                (
                                <E T="01">m</E>
                                )
                            </LI>
                        </CHED>
                        <CHED H="1">Year</CHED>
                        <CHED H="1">
                            Current rockland
                            <LI>
                                hammock (
                                <E T="01">ac</E>
                                ) 
                            </LI>
                            <LI>in Miami-Dade</LI>
                        </CHED>
                        <CHED H="1">
                            Area (
                            <E T="01">ac</E>
                            ) of rockland
                            <LI>hammock affected by both RSLR </LI>
                            <LI>and high tide</LI>
                        </CHED>
                        <CHED H="1">
                            Percent of rockland
                            <LI>hammock affected by both RSLR </LI>
                            <LI>and high tide</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>0.31</ENT>
                        <ENT>
                            2040 
                            <E T="02">I</E>
                        </ENT>
                        <ENT>609.37</ENT>
                        <ENT>58.0</ENT>
                        <ENT>9.51</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>0.54</ENT>
                        <ENT>
                            2060 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>78.9</ENT>
                        <ENT>12.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>0.83</ENT>
                        <ENT>
                            2080 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>113.4</ENT>
                        <ENT>18.61</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>0.60</ENT>
                        <ENT>
                            2040 
                            <E T="02">E</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>85.7</ENT>
                        <ENT>14.06</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="45716"/>
                <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s50,12,12,15,17,17">
                    <TTITLE>
                        Table 7—Predicted Rockland Hammock Habitat Changes With an Intermediate (
                        <E T="01">I</E>
                        ) or Extreme (
                        <E T="01">E</E>
                        ) RSLR (rElative Sea Level Rise; Sweet et al. 2017, pp. vi, vii, 12, 21) and Moderate High Tide Effect (2.7 ft (0.82 
                        <E T="01">m</E>
                        )), in the Years 2040, 2060 and 2080, in the Upper Florida Keys 
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Future
                            <LI>scenario</LI>
                        </CHED>
                        <CHED H="1">
                            RSLR
                            <LI>height</LI>
                            <LI>
                                (
                                <E T="01">m</E>
                                )
                            </LI>
                        </CHED>
                        <CHED H="1">Year</CHED>
                        <CHED H="1">
                            Current rockland
                            <LI>
                                hammock (
                                <E T="01">ac</E>
                                ) in 
                            </LI>
                            <LI>upper Keys</LI>
                        </CHED>
                        <CHED H="1">
                            Area (
                            <E T="01">ac</E>
                            ) of
                            <LI>rockland hammock</LI>
                            <LI>affected by both </LI>
                            <LI>RSLR and high tide</LI>
                        </CHED>
                        <CHED H="1">
                            Percent of rockland
                            <LI>hammock affected by both </LI>
                            <LI>RSLR and high tide</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>0.31</ENT>
                        <ENT>
                            2040 
                            <E T="02">I</E>
                        </ENT>
                        <ENT>7,005.60</ENT>
                        <ENT>3,273.8</ENT>
                        <ENT>46.73</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>0.54</ENT>
                        <ENT>
                            2060 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>3,930.8</ENT>
                        <ENT>56.11</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>0.83</ENT>
                        <ENT>
                            2080 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>4,686.5</ENT>
                        <ENT>66.90</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>0.60</ENT>
                        <ENT>
                            2040 
                            <E T="02">E</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>4,097.7</ENT>
                        <ENT>58.49</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s50,12,12,15,17,17">
                    <TTITLE>
                        Table 8—Predicted Pine Rocklands Habitat Changes With an Intermediate (
                        <E T="01">I</E>
                        ) or Extreme (
                        <E T="01">E</E>
                        ) RSLR (Relative Sea Level Rise; Sweet et al. 2017, pp. vi, vii, 12, 21) and Moderate High Tide Effect (2.7 ft (0.82 
                        <E T="01">m</E>
                        )), in the Years 2040, 2060 and 2080, in the Lower Florida Keys
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Future
                            <LI>scenario</LI>
                        </CHED>
                        <CHED H="1">
                            RSLR
                            <LI>height</LI>
                            <LI>
                                (
                                <E T="01">m</E>
                                )
                            </LI>
                        </CHED>
                        <CHED H="1">Year</CHED>
                        <CHED H="1">
                            Current pine 
                            <LI>
                                rocklands (
                                <E T="01">ac</E>
                                ) 
                            </LI>
                            <LI>in lower Keys</LI>
                        </CHED>
                        <CHED H="1">
                            Area (
                            <E T="01">ac</E>
                            ) of 
                            <LI>pine rocklands </LI>
                            <LI>affected by both </LI>
                            <LI>RSLR and high tide</LI>
                        </CHED>
                        <CHED H="1">
                            Percent of pine 
                            <LI>rocklands affected by both </LI>
                            <LI>RSLR and high tide</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>0.31</ENT>
                        <ENT>
                            2040 
                            <E T="02">I</E>
                        </ENT>
                        <ENT>1,899.35</ENT>
                        <ENT>1,674.4</ENT>
                        <ENT>88.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>0.54</ENT>
                        <ENT>
                            2060 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>1,834.9</ENT>
                        <ENT>96.61</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>0.83</ENT>
                        <ENT>
                            2080 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>1,898.9</ENT>
                        <ENT>99.98</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>0.60</ENT>
                        <ENT>
                            2040 
                            <E T="02">E</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>1,864.9</ENT>
                        <ENT>98.19</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s50,12,12,15,17,17">
                    <TTITLE>
                        Table 9—Predicted Rockland Hammock Habitat Changes With an Intermediate (
                        <E T="01">I</E>
                        ) or Extreme (
                        <E T="01">E</E>
                        ) RSLR (Relative Sea Level Rise; Sweet et al. 2017, pp. vi, vii, 12, 21) and Moderate High Tide Effect (2.7 ft [0.82 
                        <E T="01">m</E>
                        ]), in the Years 2040, 2060 and 2080, in the Lower Florida Keys
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Future
                            <LI>scenario</LI>
                        </CHED>
                        <CHED H="1">
                            RSLR
                            <LI>height</LI>
                            <LI>
                                (
                                <E T="01">m</E>
                                )
                            </LI>
                        </CHED>
                        <CHED H="1">Year</CHED>
                        <CHED H="1">
                            Current rockland
                            <LI>
                                hammock (
                                <E T="01">ac</E>
                                ) 
                            </LI>
                            <LI>in lower Keys</LI>
                        </CHED>
                        <CHED H="1">
                            Area (
                            <E T="01">ac</E>
                            ) of 
                            <LI>rockland hammock affected </LI>
                            <LI>by both </LI>
                            <LI>RSLR and high tide</LI>
                        </CHED>
                        <CHED H="1">
                            Percent of rockland
                            <LI>hammock affected by both </LI>
                            <LI>RSLR and high tide</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>0.31</ENT>
                        <ENT>
                            2040 
                            <E T="02">I</E>
                        </ENT>
                        <ENT>3,805.60</ENT>
                        <ENT>3,668.3</ENT>
                        <ENT>96.39</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>0.54</ENT>
                        <ENT>
                            2060 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>3,749.5</ENT>
                        <ENT>98.53</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>0.83</ENT>
                        <ENT>
                            2080 
                            <E T="02">I</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>3,778.4</ENT>
                        <ENT>99.29</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>0.60</ENT>
                        <ENT>
                            2040 
                            <E T="02">E</E>
                        </ENT>
                        <ENT O="xl"/>
                        <ENT>3,758.2</ENT>
                        <ENT>98.75</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Extreme weather events are another threat likely to impact pine rocklands and rockland hammock habitat. Plant species common to both habitats have little ability to tolerate salt stress due to saltwater intrusion or inundation owing to high tide events and sea level rise. Although the effects during severe storm events may be temporary, high mortality of pine rocklands and rockland hammock plant species may occur.</P>
                <P>Annual average temperature over the contiguous United States is projected to rise. Increases of approximately 2.5 °F (1.4 °C) are projected for the period 2021 to 2050 relative to 1976 to 2005 in all RCP greenhouse gas emission scenarios, implying recent record-setting years may be common in the next few decades. Much larger increases in temperature are projected by late century (2071 to 2100): 2.8 to 7.3 °F (1.6 to 4.1 °C) in RCP4.5, and 5.8 to 11.9 °F (3.2 to 6.6 °C) in RCP8.5 (USGCRP 2018, p. 159). In addition, extreme heat events in Florida are projected to increase relative to 1986 to 2005 (Service 2017, p. 2). Due to the already released, human-induced emissions of greenhouse gases present in the environment, another 0.5 °F (0.3 °C) increase in surface air temperature would be expected, even if there was a sudden end to all human-induced greenhouse gas emissions (Carter et al. 2014, pp. 414-415). For the State of Florida, this would equate to an increase of more than 30 to 40 days of extreme heat events for Florida's coastal areas (Service 2017, p. 2). An increase in temperature causes an increase in evapotranspiration in plants, which will change vegetation growth and survival, leading to changes in plant communities. These changes in vegetation could indirectly affect rim rock crowned snakes.</P>
                <P>
                    Extreme rainfall events have increased in frequency and intensity in the southeastern United States, and there is high confidence they will continue to increase in the future. Both the frequency and severity of extreme precipitation events are projected to continue increasing in the Southeast region (Easterling et al. 2017, p. 223). Future projections of average precipitation are uncertain, but an increase in intense rainfall is projected. Although average summer precipitation may not change, higher temperatures will increase the rate of soil moisture loss, and, thereby, droughts will likely be more intense (USGCRP 2018, pp. 1004, 1134). Dry consecutive days are expected to increase up to 30 percent in south Florida by 2100 (Service 2017, p. 7). Extreme conditions can be detrimental for the rim rock crowned snake. Decreased water availability, exacerbated by human population growth and land-use change, will continue to increase competition for water (USGCRP 2018, p. 1112). Increasing drought intensity will likely trigger more frequent wildfire events, which may be beneficial to rim rock crowned snake by increasing habitat 
                    <PRTPAGE P="45717"/>
                    quality. Additionally, greater rainfall rates during hurricanes are expected with about a 20 percent increase near the center of storms, increasing risks of severe and damaging flooding (Service 2017, pp. 4-5). Periods of extreme drought and/or heavy rainfall can cause losses and alteration in plant and animal communities, which could affect the rim rock crowned snake directly or indirectly. For example, with an increase in flooding frequency, rim rock crowned snakes may be more frequently displaced from underground refugia, leading to higher mortality risk. Alternatively, more periods of extreme drought may reduce the abundance of prey, decreasing the ability of rim rock crowned snakes to feed. Shifts in seasonal patterns of rainfall and temperature may reduce the rim rock crowned snake's overall resiliency, especially when extreme events occur within areas of multiple populations.
                </P>
                <HD SOURCE="HD3">Future Scenarios</HD>
                <P>In all four future scenarios, habitat supporting the rim rock crowned snake is expected to undergo significant losses due to regional sea level rise (including high tide and saltwater intrusion), particularly in the lower Florida Keys. Populations in Miami-Dade County would be the least impacted by regional sea level rise and saltwater intrusion. Under the highest climate impacts, by 2080, approximately 18.6 percent of rockland hammock habitat and only 2.3 percent of pine rocklands habitat in Miami-Dade County would be affected by regional sea level rise (see tables 5 and 6, above; see also Service 2023b, table 13). Therefore, no additional mortality in that part of the range from regional sea level rise and saltwater intrusion would be expected due to little habitat loss or alteration. However, as discussed earlier, land development pressure on remaining undeveloped lands in pine rocklands is expected to be high, as is fire suppression. Of the 2,884 ac (1,167 ha) of suitable habitat in Miami-Dade County, 76 percent is protected; however, these areas will still be affected by ongoing habitat degradation. The remaining unprotected habitat (24 percent) will likely be lost or degraded due to high development pressure, which could result in total loss, development encroachment, or fire suppression of the habitat. The result of these impacts is a decrease in resiliency for all populations of the rim rock crowned snake in Miami-Dade County under all future scenarios (see table 10, below).</P>
                <P>Storm events and associated storm surges will be a greater source of mortality and habitat alteration throughout the Florida Keys in all future scenarios, resulting in reduced population resiliency. Projected sea level rise will increase the inland penetration and residence time of saltwater during storm surge events, and impact the freshwater lens, both of which will accelerate habitat modification and loss. Additionally, sea level rise in the Florida Keys will increase saltwater intrusion and inundation, and root zone salinity over the coming decades. This will result in the loss of habitat, changes in freshwater-dependent habitat, and loss of individual snakes. In the upper Florida Keys, approximately 46.7 to 66.9 percent of rockland hammock habitat could be lost to sea level rise between 2040 and 2080, (see table 7, above). The most severe impacts are expected in the lower Florida Keys between 2040 and 2080, with habitat losses due to relative sea level rise and high tides of approximately 88.16 and 99.98 percent of pine rocklands and rockland hammock habitats, respectively (see tables 8 and 9, above). Overall, we expect a reduction of populations in the upper Florida Keys by 2040 and probable extirpation of populations in the lower Florida Keys by 2060 (see table 10, below).</P>
                <P>The ability of this species to adapt to changing environmental conditions is extremely limited. The rim rock crowned snake will not survive living in more saline or wet habitat, both of which will alter the vegetation community. This reduction in suitable habitat will lead to fewer populations and individuals occurring in the Keys. Therefore, a reduction in species representation in the lower and upper Florida Keys populations is expected. However, a reduction in species representation is not expected in the Miami-Dade County populations under any future scenario, despite a decline in resiliency of these populations.</P>
                <P>Redundancy is currently low for the rim rock crowned snake, and with the continued loss or degradation of its habitat in the lower and upper Florida Keys (as outlined above), we expect loss of populations, thereby further reducing the species' ability to withstand catastrophic events such as hurricanes. Although the rim rock crowned snake populations in Miami-Dade County are projected to remain extant in all future scenarios, the loss of populations in the lower (extirpation by 2040) and upper Florida Keys leaves the rim rock crowned snake more vulnerable to extinction.</P>
                <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s40,r25,r30,r30,r30,r30">
                    <TTITLE>Table 10—Predicted Population Condition of the Rim Rock Crowned Snake Under Four Future Scenarios </TTITLE>
                    <BOXHD>
                        <CHED H="1">Area</CHED>
                        <CHED H="1">Current</CHED>
                        <CHED H="1">2040 I</CHED>
                        <CHED H="1">2060 I</CHED>
                        <CHED H="1">2080 I</CHED>
                        <CHED H="1">2040 E</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Lower Florida Keys</ENT>
                        <ENT>Low</ENT>
                        <ENT>Possibly extirpated</ENT>
                        <ENT>Presumed extirpated</ENT>
                        <ENT>Presumed extirpated</ENT>
                        <ENT>Presumed extirpated.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Upper Florida Keys</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Miami-Dade County</ENT>
                        <ENT>Moderate</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low</ENT>
                        <ENT>Low.</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Determination</HD>
                <P>Section 4 of the Act (16 U.S.C. 1533) and its implementing regulations at 50 CFR part 424 set forth the procedures for determining whether a species meets the definition of an endangered species or a threatened species. The Act defines an endangered species as a species in danger of extinction throughout all or a significant portion of its range and a threatened species as a species likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range. The Act requires that we determine whether a species meets the definition of endangered species or threatened species because of any of the following factors: (A) The present or threatened destruction, modification, or curtailment of its habitat or range; (B) overutilization for commercial, recreational, scientific, or educational purposes; (C) disease or predation; (D) the inadequacy of existing regulatory mechanisms; or (E) other natural or manmade factors affecting its continued existence. We consider these five factors and the species' responses to these factors when making these determinations.</P>
                <P>
                    For both the Key ring-necked snake and the rim rock crowned snake, we presented summary evaluations of six threats analyzed in the SSAs: Development (Factor A), fire suppression (Factor A), sea level rise (Factor A), saltwater intrusion (Factor A), shifts in seasonal patterns of rainfall 
                    <PRTPAGE P="45718"/>
                    and temperature (Factor A), and storm events (Factor A). We also evaluated existing regulatory mechanisms (Factor D) and ongoing conservation measures. In the SSAs, we also considered four additional potential threats: Overutilization due to recreational, educational, and scientific use (Factor B); disease (Factor C); predation (Factor C), and invasive species (Factor E). We concluded that, as indicated by the best available scientific and commercial information, these four potential threats are currently having little to no impact on either the Key ring-necked snake or the rim rock crowned snake and their habitats, and thus their overall effects now and into the future are expected to be minimal. However, we consider them in the determination for each species, because although these minor threats may have low impacts on their own, combined with impacts of other threats, they could further reduce the already low numbers of Key ring-necked snakes or rim rock crowned snakes.
                </P>
                <HD SOURCE="HD2">Key Ring-Necked Snake: Status Throughout All of Its Range</HD>
                <P>The Key ring-necked snake is a narrow endemic that inhabits a limited range, with individuals recorded on seven islands. Historically, urban development and historical conversion of suitable habitat for agriculture greatly reduced the extent of suitable habitat for the Key ring-necked snake. Currently, degradation associated with urbanization and fire suppression of pine rocklands is decreasing the quality of remaining habitat, and thereby decreasing population resiliency. Only 1,899 ac (769 ha) of pine rocklands habitat and 3,806 ac (1,540 ha) of rockland hammock habitat in the lower Keys are protected or under conservation (82.6 percent of suitable habitat in total). However, the remaining parcels that are not protected are at very high risk of development. Since the Key ring-necked snake's range is so limited, any development of pine rocklands habitat would have a high level of impact on the subspecies, decreasing both population resiliency and the already limited redundancy. In addition, the pine rockland habitat that remains has declined in quality because the habitat is isolated and confined by surrounding urban development that restricts the use of prescribed fire, which is the principal management tool.</P>
                <P>Furthermore, sea level rise, higher tidal surges, coastal and inland flooding, and saltwater intrusion are already being observed in the Florida Keys. Before the effects of inundation due to sea level rise are fully realized, vegetation succession to a halophytic-dominated habitat occurs as pine rocklands plant species, particularly the dominant canopy species (slash pine), have little ability to tolerate saltwater. Thus, saltwater intrusion has resulted in degradation and loss of suitable pine rocklands habitat and the freshwater sources on which the Key ring-necked snake relies. Currently, habitat succession due to saltwater intrusion has resulted in conversion of suitable habitat for the Key ring-necked snake from rockland or hammock habitat into habitat that is unsuitable for the species such as salt-tolerant mangroves. Sea level rise is exacerbated by effects from increased rainfall and higher than average storm surges from hurricanes and other tropical storms. Because of their low mean elevation of less than 4 ft (1.2 m), the lowest parts of the Florida Keys are highly susceptible to flooding, with parts of the islands farther upland at risk of inundation and saltwater intrusion from these storm events. For example, in 2017, Hurricane Irma caused storm surge of 1.5-2.4 m (5-8 ft) in Lower Keys, 1.2-1.8 m (4-6 ft) ft in the Upper Keys (NOAA 2017, pp. 8-9). As a result of these ongoing impacts and others identified above, the seven known populations of the Key ring-necked snake are currently in low condition, and the overall viability of the species is reduced from historical levels.</P>
                <P>The primary threats currently facing the Key ring-necked snake are development, fire suppression, and the effects of sea level rise and saltwater intrusion. All climate-related environmental effects are interrelated, with increases in the magnitude of severe storms contributing to increased flooding events that have the potential to extirpate populations of the Key ring-necked snake. Although a severe hurricane is unlikely to affect all populations at once, if a hurricane were to extirpate most populations, it would leave the remainder of the subspecies significantly more vulnerable to other threats. In addition to effects associated with current rates of sea level rise, storms are also becoming more frequent and intense, accelerating habitat loss and modification and further reducing population resiliency.</P>
                <P>After evaluating threats to the species and assessing the cumulative effect of the threats under the Act's section 4(a)(1) factors, we find that the Key ring-necked snake is currently experiencing significant impacts due to development, fire suppression, and the effects of sea level rise throughout its very limited range. Given that the species is experiencing the impacts from these threats currently, we find that a threatened species status throughout all of its range is not appropriate. Because the Key ring-necked snake is endemic to only the lower Florida Key islands, and all populations for the species are in low condition due to impacts of threats (such as ongoing habitat degradation, fire suppression, and impacts from saltwater intrusion), we find the species is at a high risk of extinction. Thus, after assessing the best scientific and commercial data available, we determine that the Key ring-necked snake is in danger of extinction throughout all of its range.</P>
                <HD SOURCE="HD2">Key Ring-Necked Snake: Status Throughout a Significant Portion of Its Range</HD>
                <P>
                    Under the Act and our implementing regulations, a species may warrant listing if it is in danger of extinction or likely to become so within the foreseeable future throughout all or a significant portion of its range. We have determined that the Key ring-necked snake is in danger of extinction throughout all of its range and accordingly did not undertake an analysis of any significant portions of its range. Because the Key ring-necked snake warrants listing as endangered throughout all of its range, our determination does not conflict with the decision in 
                    <E T="03">Center for Biological Diversity</E>
                     v. 
                    <E T="03">Everson,</E>
                     435 F. Supp. 3d 69 (D.D.C. 2020) (
                    <E T="03">Everson</E>
                    ), because that decision related to significant portion of the range analyses for species that warrant listing as threatened, not endangered, throughout all of their range.
                </P>
                <HD SOURCE="HD2">Key Ring-Necked Snake: Determination of Status</HD>
                <P>Based on the best scientific and commercial data available, we determine that the Key ring-necked snake meets the Act's definition of an endangered species. Therefore, we are listing the Key ring-necked snake as an endangered species in accordance with sections 3(6) and 4(a)(1) of the Act.</P>
                <HD SOURCE="HD2">Rim Rock Crowned Snake: Status Throughout All of Its Range</HD>
                <P>
                    The rim rock crowned snake is endemic to only the southeastern part of the Florida peninsula and the Florida Keys. Currently, the resiliency of the seven populations in the Miami-Dade area is moderate, and the resiliency of the eight populations in the Florida Keys is low. However, the rim rock crowned snake is facing a variety of threats across its range. The effects of urbanization and degradation are impacting the rim rock crowned snake across its range, but the effects are 
                    <PRTPAGE P="45719"/>
                    particularly severe in eastern Miami-Dade County. Although 76 percent of remaining suitable habitat for the rim rock crowned snake in that part of the range is protected, the habitat is spread across Miami-Dade County in small, isolated fragments. These fragments are undergoing degradation due to urbanization, and pine rocklands habitat is being further degraded due to fire suppression, which causes it to undergo transition to dense canopy that is less suitable for the rim rock crowned snake. Thus, although individual populations are currently less likely to be lost to new development, ongoing habitat degradation associated with effects of urbanization and fire suppression in pine rocklands will continue to reduce the availability of features that the rim rock crowned snake needs, thus decreasing population resiliency. Although seven populations in this part of the species' range are extant, we expect the effects of habitat degradation will increase in magnitude into the future, particularly in pine rocklands habitat where prescribed burning does not occur, further reducing resiliency.
                </P>
                <P>Rangewide, the rim rock crowned snake is also facing threats due to the ongoing occurrence of more severe storms and the increased incidence and intensity of storm surge that accompanies these storms. Increased rainfall, along with the threats of sea level rise and higher than average storm surges, is already reducing the amount of available habitat due to inundation, particularly within the Florida Keys. Because of their low mean elevation of less than 4 ft (1.2 m), the lowest parts of the Florida Keys are highly susceptible to flooding, with parts of the islands farther upland at risk of inundation and saltwater intrusion from these storm events. Saltwater intrusion has resulted in degradation and loss of suitable pine rocklands and rockland hammock habitats—through vegetation shifting to halophytic species—in the Florida Keys, as well as the degradation and loss of the freshwater sources on which the rim rock crowned snake relies. All of this, in turn, negatively affects snake movement, reproduction, and food availability. Succession to more halophytic vegetation has likely altered the density and type of prey available to the rim rock crowned snake in these areas, decreasing population resiliency. In addition, the underground spaces, such as the limestone substrate that the rim rock crowned snake inhabits, are vulnerable to sea level rise, and increased frequency in flooding of underground areas increases the amount of time that species are displaced from refugia. This displacement makes them more vulnerable to predation, and combined with losses of foraging and breeding opportunities (reproduction), this further decreases population resiliency. Although a severe hurricane would be unlikely to flood all populations across the species' range at once, if a hurricane were to extirpate multiple populations, it would leave the remainder of the species significantly more vulnerable to other threats, including threats that currently only have a minor impact on the species.</P>
                <P>Given the species' limited distribution and limited ecological setting, species representation is currently low. However, the species has moderate redundancy, as it has multiple populations distributed throughout the Miami-Dade area (seven populations in moderate condition) and the upper and lower Florida Keys (eight populations in low condition). Thus, although these threats may cause the species to become endangered within the foreseeable future, we do not find that threats at their current magnitude are reducing resiliency and redundancy such that the species is in danger of extinction now throughout all of the species' range.</P>
                <P>In considering the foreseeable future for the rim rock crowned snake, we analyzed expected changes in development through 2070 based on the available model datasets, shifts in seasonal patterns of rainfall and temperature through 2100, and sea level rise and saltwater intrusion from 2030 to 2100. That said, we focused on changes that are expected in the next 60 years because virtually no habitat for either species is forecasted to be present in the lower Florida Keys by 2080. We determined that this timeframe represents a period of time for which we can reliably predict both the threats to the species and the species' response to those threats.</P>
                <P>Within the foreseeable future, we anticipate that threats associated saltwater intrusion, and sea level rise, will continue to increase in magnitude and have the greatest influence on population resiliency. Tropical storms will continue to become more frequent and intense, accelerating habitat modification and reducing population resiliency. Additionally, the Florida Keys, which are already in low condition, will continue to face increased saltwater intrusion and sea level rise. Acting together, these threats will cause irreversible habitat modification and loss that will be further exacerbated by ongoing and increasing levels of inundation. Populations of the rim rock crowned snake in the lower Florida Keys may be completely lost in the next 10 to 20 years. By 2040, the upper Keys populations will experience loss of nearly half of its current habitat, and the lower Keys populations may potentially be extirpated.</P>
                <P>In Miami-Dade County, the effects of storm events (for example, storm surges, high tide), saltwater intrusion, and sea level rise would not exert much influence on population resiliency within the foreseeable future. However, given that there is a relatively low amount of suitable habitat (2,884 ac (1,167 ha)) to begin with when compared to the Florida Keys (12,711 ac (5,144 ha)), these additional threats may exert pressure, which, in combination, could stress the resiliency of the Miami-Dade populations and further reduce species redundancy as a whole in the future. Dispersal of individual snakes to other populations is unlikely and would only occur in isolated, random circumstances.</P>
                <P>The urban environment of metropolitan Miami presents many challenges for dispersing snakes, including roads, highways, commercial and residential development, canals, and vast storm water retention areas. Encroachment and degradation are likely to increase in magnitude within the foreseeable future for most remaining habitat, and risk of development of the 24 percent of unprotected suitable habitat in Miami-Dade County is high. As the urban interface of metropolitan Miami increases in density, the likelihood of prescribed burning decreases, which in turn decreases remaining habitat quality. If the habitat in Miami-Dade County is the only remaining habitat within the rim rock crowned snake's range due to the effects of sea level rise and saltwater intrusion discussed above in the Florida Keys, extinction may occur much more quickly due to the small amount of suitable habitat left on the mainland, which will likely degrade in quality, with populations becoming increasingly isolated from one another.</P>
                <P>
                    After evaluating threats to the species and assessing the cumulative effect of the threats under the Act's section 4(a)(1) factors, we find that the rim rock crowned snake is facing threats across its range due to development, habitat fragmentation, and effects associated with sea level rise and saltwater intrusion. However, the species currently maintains enough population resiliency and species redundancy that it is not in danger of extinction now throughout all of its range. Within the foreseeable future, unprotected habitat in eastern Miami-Dade County will continue to be lost due to development, 
                    <PRTPAGE P="45720"/>
                    and protected habitat will continue to undergo degradation due to edge effects and fire suppression. In the Florida Keys, up to half of the available habitat in the upper Keys and nearly all habitat in the lower Keys could be lost by 2040. Thus, after assessing the best scientific and commercial data available, we conclude that the rim rock crowned snake is not currently in danger of extinction but is likely to become in danger of extinction within the foreseeable future throughout all of its range.
                </P>
                <HD SOURCE="HD2">Rim Rock Crowned Snake: Status Throughout a Significant Portion of Its Range</HD>
                <P>
                    Under the Act and our implementing regulations, a species may warrant listing if it is in danger of extinction or likely to become so within the foreseeable future throughout all or a significant portion of its range. The court in 
                    <E T="03">Everson</E>
                     vacated the provision of the Services' Final Policy on Interpretation of the Phrase “Significant Portion of Its Range” in the Endangered Species Act's Definitions of “Endangered Species” and “Threatened Species” (Final Policy; 79 FR 37578; July 1, 2014) that provided if the Services determine that a species is threatened throughout all of its range, the Services will not analyze whether the species is endangered in a significant portion of its range.
                </P>
                <P>Therefore, we proceed to evaluating whether the species is endangered in a significant portion of its range—that is, whether there is any portion of the species' range for which both (1) the portion is “significant”; and (2) the species is in danger of extinction in that portion. We can choose to address either question first. Regardless of which question we address first, if we reach a negative answer with respect to the first question that we address, we do not need to evaluate the other question for that portion of the species' range.</P>
                <P>
                    Following the court's holding in 
                    <E T="03">Everson,</E>
                     we now consider whether the species is in danger of extinction in a significant portion of its range.
                </P>
                <P>For the rim rock crowned snake, we considered whether there are any portions of the species' current range that may have a different status. For many species, we can divide its range in an infinite number of ways. As described in Current Condition, for the rim rock crowned snake, we divided the range into populations, including defining individual islands in the Florida Keys as populations. Due to the difference in threats between the populations in Miami-Dade County and the Florida Keys (table 4), we divided the range into a Florida Keys portion and a Miami-Dade portion.</P>
                <P>We then evaluated whether the rim rock crowned snake has a similar near-term risk of extinction in all areas across its range by assessing its extinction risk within each of these two areas. Our review indicated that the rim rock crowned snake's near-term extinction risk varies across its range such that its regulatory status may be different in a portion of the range; therefore, we evaluated whether it may be endangered based upon the “throughout a significant portion of its range” component. In undertaking this analysis, we reviewed the best scientific and commercial data available regarding threats to the species, its responses to those threats, and any associated conservation measures. We then assessed the cumulative effects of those threats and conservation measures under the Act's section 4(a)(1) factors.</P>
                <P>We identified and evaluated a portion of the range where the rim rock crowned snake may be in danger of extinction that includes the eight populations in the Florida Keys.</P>
                <P>We found that the rim rock crowned snake is not in danger of extinction in the near term in the remaining populations in Miami-Dade County; therefore, they are not included in the portion that we are evaluating for the endangered classification. First, we explain our reasoning that the rim rock crowned snake is not in danger of extinction throughout the rest of the range. Though the Miami-Dade portion of the range is currently affected by threats associated with development and fire suppression (Factor A), all population are currently in moderate condition. In addition, threats associated with the effects of high tide flooding and saltwater intrusion (Factor E) are only having a minimal effect on that portion of the range. Overall, though we expect the threats in this area to increase in the foreseeable future, this portion currently maintains population resiliency, redundancy with 15 populations, and similar representation to historical condition. Therefore, we conclude that the rim rock crowned snake is not in danger of extinction in the Miami-Dade area, but it may be in danger of extinction in the Florida Keys portion of the species' range.</P>
                <P>
                    For this portion of the range where the rim rock crowned snake 
                    <E T="03">may</E>
                     be in danger of extinction, we first addressed the rim rock crowned snake's status. In undertaking this analysis of whether the rim rock crowned snake is in danger of extinction throughout a portion of its range, we reviewed the best scientific and commercial data available regarding threats to the species, its responses to those threats, and any associated conservation measures. We then assessed the cumulative effects of those threats and conservation measures under the Act's section 4(a)(1) factors.
                </P>
                <P>In the Florida Keys, all eight populations are currently in low condition. Within the Florida Keys, the effects associated sea level rise (that is, higher tidal surges, coastal and inland flooding, and saltwater intrusion) are already being observed. Before the effects of inundation due to sea level rise are fully realized, vegetation succession to a halophytic-dominated habitat occurs as pine rocklands species, particularly the dominant canopy species (slash pine), have little ability to tolerate saltwater. Thus, saltwater intrusion has resulted in degradation and loss of suitable pine rocklands habitat and the freshwater sources on which the rim rock crowned snake relies. Currently, habitat succession due to saltwater intrusion has resulted in conversion of suitable habitat for the rim rock crowned snake from rockland or hammock habitat into habitat that is unsuitable for the species, such as salt-tolerant mangroves. Succession to more halophytic vegetation has likely altered the density and type of prey available to the rim rock crowned snake in these areas, decreasing population resiliency.</P>
                <P>Sea level rise is exacerbated by effects from increased rainfall and higher than average storm surges from hurricanes and other tropical storms. Underground spaces, such as the limestone substrate that the rim rock crowned snake inhabits, are vulnerable to sea level rise. Increased frequency in flooding of subterranean areas increases the amount of time that species are displaced from refugia, making them more vulnerable to predation and extreme temperatures. This, combined with losses of foraging and breeding opportunities, further decreases population resiliency.</P>
                <P>As mentioned above, within the Florida Keys portion, the eight populations currently have low resiliency. Given the species' current condition within the Keys and ongoing impacts from sea level rise which are already being realized, we find that the Florida Keys portion of the rim rock crowned snake is in danger of extinction.</P>
                <P>
                    We then proceeded to the significance question, asking whether this portion of the range (
                    <E T="03">i.e.,</E>
                     the Florida Keys portion of the rim rock crowned snake's range) is significant. The Service's most recent definition of “significant” within agency policy guidance has been invalidated by court order (see 
                    <E T="03">Desert Survivors</E>
                     v. 
                    <E T="03">
                        U.S. Department of the 
                        <PRTPAGE P="45721"/>
                        Interior,
                    </E>
                     321 F. Supp. 3d 1011, 1070-74 (N.D. Cal. 2018)). For the purposes of this analysis for the rim rock crowned snake, when considering whether the Florida Keys portion is significant, we considered whether the portion may (1) occur in a unique habitat or ecoregion for the species; (2) contain high quality or high value habitat relative to the remaining portions of the range, for the species' continued viability in light of the existing threats; (3) contain habitat that is essential to a specific life-history function for the species and that is not found in the other portions (for example, the principal breeding ground for the species); or (4) contain a large geographic portion of the suitable habitat relative to the remaining portions of the range for the species.
                </P>
                <P>The Florida Keys portion of the range contains the largest patches of intact pine rocklands and rockland hammock habitats within the rim rock crowned snake's range. Currently, the Florida Keys accounts for roughly 82 percent (12,711 of 15,595 ac (5,144 of 6,311 ha)) of suitable pine rocklands and rockland hammock habitat and 53 percent (8 of 15) of extant populations within the range of the rim rock crowned snake. In the lower Florida Keys, the total area of pine rocklands habitat is approximately 1,899 ac (769 ha), and the total area of rockland hammock habitat is approximately 3,806 ac (1,540 ha). While the hammock habitats are widespread across many islands in various sizes, pine rocklands remain on only five islands in the lower Florida Keys and none of the upper Florida Keys. The total area covered by rockland hammock in the upper Florida Keys is 7,006 ac (2,835 ha). The Florida Keys portion constitutes a large geographic area relative to the remaining portions of the range, as this area encompasses 82 percent of the rangewide suitable habitat for the rim rock crowned snake. Therefore, having assessed the Florida Keys portion's biological significance in terms of the above habitat considerations, we find this portion is significant to the rim rock crowned snake.</P>
                <P>
                    Accordingly, having determined that the Florida Keys portion of the species' range (1) is significant, and (2) is currently in danger of extinction, we find the rim rock crowned snake meets the Act's definition of an endangered species because it is in danger of extinction throughout a significant portion of its range. This is consistent with the courts' holdings in 
                    <E T="03">Desert Survivors</E>
                     v. 
                    <E T="03">Department of the Interior,</E>
                     321 F. Supp. 3d 1011 (N.D. Cal. 2018), 
                    <E T="03">and Center for Biological Diversity</E>
                     v. 
                    <E T="03">Jewell,</E>
                     248 F. Supp. 3d, 946, 959 (D. Ariz. 2017).
                </P>
                <HD SOURCE="HD2">Rim Rock Crowned Snake: Determination of Status</HD>
                <P>Based on the best scientific and commercial data available, we determine that the rim rock crowned snake meets the Act's definition of an endangered species because it is in danger of extinction throughout a significant portion of its range. Therefore, we are listing the rim rock crowned snake as an endangered species in accordance with sections 3(6) and 4(a)(1) of the Act.</P>
                <HD SOURCE="HD1">Available Conservation Measures</HD>
                <P>Conservation measures provided to species listed as endangered or threatened species under the Act include recognition as a listed species, planning and implementation of recovery actions, requirements for Federal protection, and prohibitions against certain practices. Recognition through listing results in public awareness, and conservation by Federal, State, Tribal, and local agencies, foreign governments, private organizations, and individuals. The Act encourages cooperation with the States and other countries and calls for recovery actions to be carried out for listed species. The protection required by Federal agencies, including the Service, and the prohibitions against certain activities are discussed, in part, below.</P>
                <P>The primary purpose of the Act is the conservation of endangered and threatened species and the ecosystems upon which they depend. The ultimate goal of such conservation efforts is the recovery of these listed species, so that they no longer need the protective measures of the Act. Section 4(f) of the Act calls for the Service to develop and implement recovery plans for the conservation of endangered and threatened species. Under section 4(f)(1)(B)(ii), recovery plans must, to the maximum extent practicable, include objective, measurable criteria which, when met, would result in a determination, in accordance with the provisions of section 4 of the Act, that the species be removed from the Lists of Endangered and Threatened Wildlife and Plants.</P>
                <P>Recovery plans provide a roadmap for us and our partners on methods of enhancing conservation and minimizing threats to listed species, as well as measurable criteria against which to evaluate progress towards recovery and assess the species' likely future condition. However, they are not regulatory documents and do not substitute for the determinations and promulgation of regulations required under section 4(a)(1) of the Act. A decision to revise the status of a species, or to delist a species, is ultimately based on an analysis of the best scientific and commercial data available to determine whether a species is no longer an endangered species or a threatened species, regardless of whether that information differs from the recovery plan.</P>
                <P>
                    The recovery planning process begins with development of a recovery outline made available to the public soon after a final listing determination. The recovery outline guides the immediate implementation of urgent recovery actions while a recovery plan is being developed. Recovery teams (composed of species experts, Federal and State agencies, nongovernmental organizations, and stakeholders) may be established to develop and implement recovery plans. The recovery outline, draft recovery plan, final recovery plan, and any revisions will be available on our website as they are completed (
                    <E T="03">https://www.fws.gov/program/endangered-species</E>
                    ) or from our Florida Ecological Services Field Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ).
                </P>
                <P>
                    Implementation of recovery actions generally requires the participation of a broad range of partners, including other Federal agencies, States, Tribes, nongovernmental organizations, businesses, and private landowners. Examples of recovery actions include habitat restoration (
                    <E T="03">e.g.,</E>
                     restoration of native vegetation), research, captive propagation and reintroduction, and outreach and education. The recovery of many listed species cannot be accomplished solely on Federal lands because their range may occur primarily or solely on non-Federal lands. To achieve recovery of these species requires cooperative conservation efforts on private, State, and Tribal lands.
                </P>
                <P>
                    When this rule is effective (see 
                    <E T="02">DATES</E>
                    , above), funding for recovery actions will be available from a variety of sources, including Federal budgets, State programs, and cost-share grants for non-Federal landowners, the academic community, and nongovernmental organizations. In addition, pursuant to section 6 of the Act, the State of Florida will be eligible for Federal funds to implement management actions that promote the protection or recovery of the Key ring-necked snake and the rim rock crowned snake. Information on our grant programs that are available to aid species recovery can be found at: 
                    <E T="03">https://www.fws.gov/service/financial-assistance.</E>
                </P>
                <P>
                    Please let us know if you are interested in participating in recovery 
                    <PRTPAGE P="45722"/>
                    efforts for the Key ring-necked snake and the rim rock crowned snake. Additionally, we invite you to submit any new information on this species whenever it becomes available and any information you may have for recovery planning purposes (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ).
                </P>
                <P>Section 7 of the Act is titled, “Interagency Cooperation,” and it mandates all Federal action agencies to use their existing authorities to further the conservation purposes of the Act and to ensure that their actions are not likely to jeopardize the continued existence of listed species or adversely modify critical habitat. Regulations implementing section 7 are codified at 50 CFR part 402.</P>
                <P>Section 7(a)(2) states that each Federal action agency shall, in consultation with the Secretary, ensure that any action they authorize, fund, or carry out is not likely to jeopardize the continued existence of a listed species or result in the destruction or adverse modification of designated critical habitat. Each Federal agency shall review its action at the earliest possible time to determine whether it may affect listed species or critical habitat. If a determination is made that the action may affect listed species or critical habitat, formal consultation is required (50 CFR 402.14(a)), unless the Service concurs in writing that the action is not likely to adversely affect listed species or critical habitat. At the end of a formal consultation, the Service issues a biological opinion, containing its determination of whether the Federal action is likely to result in jeopardy or adverse modification.</P>
                <P>
                    Examples of discretionary actions that may be subject to consultation procedures under section 7 are management of Federal lands administered by the Crocodile Lake National Wildlife Refuge (for the rim rock crowned snake) and the Key Deer National Wildlife Refuge (for both species), as well as actions that require a Federal permit (such as a permit from the U.S. Army Corps of Engineers under section 404 of the Clean Water Act (33 U.S.C. 1251 
                    <E T="03">et seq.</E>
                    ) or actions funded by Federal agencies such as the Federal Highway Administration, Federal Aviation Administration, or the Federal Emergency Management Agency. Federal actions not affecting listed species or critical habitat—and actions on State, Tribal, local, or private lands that are not federally funded, authorized, or carried out by a Federal agency—do not require section 7 consultation. Federal agencies should coordinate with the local Service Field Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ) with any specific questions on section 7 consultation and conference requirements.
                </P>
                <P>The Act and its implementing regulations set forth a series of general prohibitions and exceptions that apply to endangered wildlife. The prohibitions of section 9(a)(1) of the Act, and the Service's implementing regulations codified at 50 CFR 17.21, make it illegal for any person subject to the jurisdiction of the United States to commit, to attempt to commit, to solicit another to commit, or to cause to be committed any of the following acts in regard to endangered wildlife: (1) import into, or export from, the United States; (2) take (which includes harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or to attempt to engage in any such conduct) within the United States, within the territorial sea of the United States, or on the high seas; (3) possess, sell, deliver, carry, transport, or ship, by any means whatsoever, any such wildlife that has been taken illegally; (4) deliver, receive, carry, transport, or ship in interstate or foreign commerce, by any means whatsoever and in the course of commercial activity; or (5) sell or offer for sale in interstate or foreign commerce. Certain exceptions to these prohibitions apply to employees or agents of the Service, the National Marine Fisheries Service, other Federal land management agencies, and State conservation agencies.</P>
                <P>We may issue permits to carry out otherwise prohibited activities involving endangered wildlife under certain circumstances. Regulations governing permits for endangered wildlife are codified at 50 CFR 17.22, and general Service permitting regulations are codified at 50 CFR part 13. With regard to endangered wildlife, a permit may be issued: for scientific purposes, for enhancing the propagation or survival of the species, or for take incidental to otherwise lawful activities. The statute also contains certain exemptions from the prohibitions, which are found in sections 9 and 10 of the Act.</P>
                <P>
                    It is the policy of the Services, as published in the 
                    <E T="04">Federal Register</E>
                     on July 1, 1994 (59 FR 34272), to identify, to the extent known at the time a species is listed, specific activities that will not be considered likely to result in violation of section 9 of the Act. To the extent possible, activities that will be considered likely to result in violation will also be identified in as specific a manner as possible. The intent of this policy is to increase public awareness of the effect of a listing on proposed and ongoing activities within the range of the species.
                </P>
                <P>As discussed above, certain activities that are prohibited under section 9 may be permitted under section 10 of the Act. In addition, to the extent currently known, the following activities will not be considered likely to result in violation of section 9 of the Act:</P>
                <P>(1) Recreational use with minimal ground disturbance (for example, hiking, walking); and</P>
                <P>(2) Herbicide and pesticide use that is carried out in accordance with any existing regulations, permit and label requirements, and best management practices.</P>
                <P>
                    This list is intended to be illustrative and not exhaustive; additional activities that will not be considered likely to result in violation of section 9 of the Act may be identified during coordination with the local field office, and in some instances (
                    <E T="03">e.g.,</E>
                     with new information), the Service may conclude that one or more activities identified here will be considered likely to result in violation of section 9.
                </P>
                <P>To the extent currently known, the following is a list of examples of activities that will be considered likely to result in violation of section 9 of the Act in addition to what is already clear from the descriptions of the prohibitions found at 50 CFR 17.21:</P>
                <P>(1) Unauthorized handling or collecting of the species;</P>
                <P>(2) Sale or purchase of specimens, except for properly documented antique specimens of this taxon at least 100 years old, as defined by section 10(h)(1) of the Act;</P>
                <P>(3) Activities resulting in ground disturbance in occupied Key ring-necked snake or rim rock crowned snake habitat (for example, plowing, mowing, burning, land leveling or clearing, grading, disking, soil compaction, soil removal, dredging, excavation, deposition of dredged or fill material, erosion and deposition of sediment/soil); and</P>
                <P>(4) Introduction of nonnative species that compete with or prey upon the Key ring-necked snake or rim rock crowned snake.</P>
                <P>
                    This list is intended to be illustrative and not exhaustive; additional activities that will be considered likely to result in violation of section 9 of the Act may be identified during coordination with the local field office, and in some instances (
                    <E T="03">e.g.,</E>
                     with new or site-specific information), the Service may conclude that one or more activities identified here will not be considered likely to result in violation of section 9. Questions regarding whether specific activities would constitute violation of section 9 of the Act should be directed to the Florida Ecological Services Field 
                    <PRTPAGE P="45723"/>
                    Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    , above).
                </P>
                <HD SOURCE="HD1">Required Determinations</HD>
                <HD SOURCE="HD2">Government-to-Government Relationship With Tribes</HD>
                <P>In accordance with the President's memorandum of April 29, 1994 (Government-to-Government Relations with Native American Tribal Governments; 59 FR 22951, May 4, 1994), Executive Order 13175 (Consultation and Coordination with Indian Tribal Governments), the President's memorandum of November 30, 2022 (Uniform Standards for Tribal Consultation; 87 FR 74479, December 5, 2022), and the Department of the Interior's manual at 512 DM 2, we readily acknowledge our responsibility to communicate meaningfully with federally recognized Tribes and Alaska Native Corporations on a government-to-government basis. In accordance with Secretary's Order 3206 of June 5, 1997 (American Indian Tribal Rights, Federal-Tribal Trust Responsibilities, and the Endangered Species Act), we readily acknowledge our responsibilities to work directly with Tribes in developing programs for healthy ecosystems, to acknowledge that Tribal lands are not subject to the same controls as Federal public lands, to remain sensitive to Indian culture, and to make information available to Tribes.</P>
                <HD SOURCE="HD1">References Cited</HD>
                <P>
                    A complete list of references cited in this rulemaking is available on the internet at 
                    <E T="03">https://www.regulations.gov</E>
                     and upon request from the Florida Ecological Services Field Office (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ).
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 50 CFR Part 17</HD>
                    <P>Endangered and threatened species, Exports, Imports, Plants, Reporting and recordkeeping requirements, Transportation, Wildlife.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Regulation Promulgation</HD>
                <P>Accordingly, we amend part 17, subchapter B of chapter I, title 50 of the Code of Federal Regulations, as set forth below:</P>
                <PART>
                    <HD SOURCE="HED">PART 17—ENDANGERED AND THREATENED WILDLIFE AND PLANTS</HD>
                </PART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>1. The authority citation for part 17 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>16 U.S.C. 1361-1407; 1531-1544; and 4201-4245, unless otherwise noted.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>2. Amend § 17.11 in paragraph (h) by adding entries to the List of Endangered and Threatened Wildlife for “Snake, Key ring-necked” and “Snake, rim rock crowned” in alphabetical order under REPTILES to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 17.11 </SECTNO>
                        <SUBJECT>Endangered and threatened wildlife.</SUBJECT>
                        <STARS/>
                        <P>(h) * * *</P>
                        <GPOTABLE COLS="5" OPTS="L1,tp0,i1" CDEF="s50,r50,r50,xs54,r100">
                            <TTITLE> </TTITLE>
                            <BOXHD>
                                <CHED H="1">Common name</CHED>
                                <CHED H="1">Scientific name</CHED>
                                <CHED H="1">Where listed</CHED>
                                <CHED H="1">Status</CHED>
                                <CHED H="1">
                                    Listing citations and
                                    <LI>applicable rules</LI>
                                </CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW EXPSTB="04">
                                <ENT I="21">
                                    <E T="02">Reptiles</E>
                                </ENT>
                            </ROW>
                            <ROW EXPSTB="00">
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Snake, Key ring-necked</ENT>
                                <ENT>
                                    <E T="03">Diadophis punctatus acricus</E>
                                </ENT>
                                <ENT>Wherever found</ENT>
                                <ENT>E</ENT>
                                <ENT>
                                    91 FR [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     PAGE WHERE THE DOCUMENT BEGINS], July 21, 2026.
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Snake, rim rock crowned</ENT>
                                <ENT>
                                    <E T="03">Tantilla oolitica</E>
                                </ENT>
                                <ENT>Wherever found</ENT>
                                <ENT>E</ENT>
                                <ENT>
                                    91  FR [INSERT 
                                    <E T="02">FEDERAL REGISTER</E>
                                     PAGE WHERE THE DOCUMENT BEGINS], July 21, 2026.
                                </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                        </GPOTABLE>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Brian R. Nesvik,</NAME>
                    <TITLE>Director, U.S. Fish and Wildlife Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14637 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <CFR>50 CFR Part 17</CFR>
                <DEPDOC>[Docket No. FWS-HQ-ES-2025-0029; FXES11130900000-267-FF09E23000]</DEPDOC>
                <RIN>RIN 1018-BI74</RIN>
                <SUBJECT>Endangered and Threatened Wildlife and Plants; Regulations Pertaining to Endangered and Threatened Wildlife and Plants</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>We, the U.S. Fish and Wildlife Service (FWS or the Service), revise our regulations concerning protections of threatened species under the Endangered Species Act (Act). We are removing the “blanket rule” option for protecting newly listed threatened species pursuant to section 4(d) of the Act.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective August 20, 2026.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Public comments and materials received, as well as supporting documentation used in the preparation of this final regulation, are available at 
                        <E T="03">https://www.regulations.gov</E>
                         at Docket No. FWS-HQ-ES-2025-0029.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        John Tirpak, U.S. Fish and Wildlife Service, Division of Conservation and Classification; 703-358-2163; 
                        <E T="03">john_tirpak@fws.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>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The Endangered Species Act of 1973, as amended (hereafter referred to as the Act or ESA; 16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ), states that the purposes of the Act are to provide a means to conserve the ecosystems upon which endangered species and threatened species (listed species) depend, to provide a program for the conservation of listed species, and to achieve the purposes of certain treaties and conventions (16 U.S.C. 
                    <PRTPAGE P="45724"/>
                    1531(b)). Moreover, the Act states that it is the policy of Congress that all Federal departments and agencies shall seek to conserve endangered species and threatened species and shall use their authorities to further the purposes of the Act (16 U.S.C. 1531(c)(1)).
                </P>
                <P>This rulemaking action pertains to section 4 of the Act. Section 4 of the Act (16 U.S.C. 1533) and the regulations in title 50 of the Code of Federal Regulations (CFR) set forth the procedures for determining whether a species is an endangered species or a threatened species, issuing protective regulations for threatened species, and designating critical habitat for endangered and threatened species.</P>
                <P>
                    Section 9(a) of the Act provides a specific list of prohibitions for endangered species that are applicable automatically at the time of listing, but does not provide these same or comparable prohibitions automatically to threatened species. Instead, section 4(d) of the Act requires that whenever a species is listed as a threatened species the Secretary of the Interior (Secretary) shall issue regulations that are necessary and advisable to provide for the conservation of the species and also may by regulation prohibit with respect to any threatened species any act prohibited under section 9(a) for an endangered species; these are referred to as “4(d) rules.” Congress delegated to the Secretary the authority to determine what protections each threatened species should receive. Early in the administration of the Act, the Service promulgated “blanket rules,” for threatened species of wildlife and plants at 50 CFR 17.31(a) and 17.71(a), respectively. Pursuant to these blanket rules, as soon as a species was listed as threatened, nearly all the section 9(a) prohibitions that apply to endangered species would automatically apply to threatened species, unless we issued an alternative rule for that species (
                    <E T="03">i.e.,</E>
                     a species-specific rule, previously referred to as “special rules”). In those instances when we issued a species-specific rule for a species, that species-specific 4(d) rule contained the protective regulations for that species. On August 27, 2019, we issued a final rule that revised 50 CFR 17.31 and 17.71 (84 FR 44753; hereafter, “the 2019 rule”) and removed the “blanket rule” option for applying section 9(a) prohibitions to species newly listed as threatened after the effective date of those regulatory revisions (September 26, 2019). The “blanket rule” protections continued to apply to threatened species without an associated species-specific rule that were listed prior to September 26, 2019. Under the 2019 rule, we applied protections to a species newly listed as threatened only through issuance of a species-specific rule setting out the protective regulations that are necessary and advisable for that species. On April 5, 2024, we reinstated the “blanket rule” option at 50 CFR 17.31 and 17.71 for newly listed threatened species and finalized several other revisions to 50 CFR part 17 (89 FR 23919; hereafter, “the 2024 rule”). Those 2024 revised regulations became effective on May 6, 2024.
                </P>
                <P>
                    The 2024 rule is subject to pending litigation in 
                    <E T="03">Rocky Mountain Elk Foundation et al.</E>
                     v. 
                    <E T="03">U.S. Fish and Wildlife Serv. et al.;</E>
                     2:25-cv-00029-KLD (D. Mont.). A second case that was identified in the proposed rule, 
                    <E T="03">American Farm Bureau Federation et al.</E>
                     v. 
                    <E T="03">U.S. Fish and Wildlife Serv. et al.;</E>
                     1:25-cv-00947 (D.D.C.), has since been voluntarily dismissed. Prior litigation over the 2019 rule was not resolved on the merits; rather, on November 16, 2022, the United States District Court for the Northern District of California issued orders remanding the 2019 rule to the Service without vacating it, as the Service had voluntarily asked the Court to do. Soon after, the Service developed the 2024 rule.
                </P>
                <P>
                    In our 2025 proposed rule (90 FR 52587, November 21, 2025) we referred to two Executive Orders (E.O.s) as the impetus for reviewing and revising the regulations that pertain to protections for threatened species under section 4(d). E.O. 14154, “Unleashing American Energy,” issued January 20, 2025, directed all departments and agencies to review agency actions that impose an undue burden on the identification, development, or use of domestic energy resources, and, as appropriate and consistent with applicable law, consider suspending, revising, or rescinding agency actions that conflict with this national objective. To administer provisions of E.O. 14154, the Secretary subsequently issued Secretary's Order (S.O.) 3418 on February 3, 2025, which directed Assistant Secretaries to take steps, as appropriate, to suspend, revise, or rescind multiple actions that had been finalized under the prior Administration. The S.O. specifically referenced taking these steps with respect to the 2024 rule. E.O. 14219, “Ensuring Lawful Governance and Implementing the President's `Department of Government Efficiency' Deregulatory Initiative,” issued February 19, 2025, also directs all departments and agencies to review and rescind unlawful regulations that are “based on anything other than the best reading of the underlying statutory authority” (see also 
                    <E T="03">Loper Bright Enterprises</E>
                     v. 
                    <E T="03">Raimondo,</E>
                     603 U.S. 369 (2024) (hereafter, “
                    <E T="03">Loper Bright”</E>
                    )). While E.O.s 14154 and 14219 initiated our review, our goal in revising these regulations was to determine how best to craft protective regulations for threatened species under section 4(d) of the Act while also considering our experience administering the Act and policy preferences. Based on our evaluation, and for reasons discussed in more detail below, we are revising 50 CFR part 17.
                </P>
                <P>The Secretaries of the Interior and Commerce share responsibilities for administering most of the provisions of the Act. Generally, marine species and some anadromous (sea-run) species are under the jurisdiction of the Secretary of Commerce, and all other species are under the jurisdiction of the Secretary of the Interior. Authority to administer the Act has been delegated by the Secretary of the Interior to the Director of the Service and by the Secretary of Commerce to the Assistant Administrator for the National Marine Fisheries Service (NMFS). FWS and NMFS (collectively, the Services) separately administer section 4(d) for species within their respective jurisdictions. When we amended our section 4(d) regulations in 2019, and again in 2024, those amendments affected only species under FWS jurisdiction. This regulation similarly affects only species under FWS jurisdiction. Since this rulemaking is solely applicable to the FWS, when we refer to the Secretary, we mean the Secretary of the Interior.</P>
                <HD SOURCE="HD1">Regulatory Revisions</HD>
                <P>
                    We are revising the regulations in 50 CFR part 17, subparts D and G. Section 4(d) of the Act gives the Secretary the authority and discretion to develop and revise regulations for protecting threatened species. We are removing the future use of the “blanket rule” option from 50 CFR 17.31 and 17.71 for threatened species. Removing the future use of the “blanket rule” option from 50 CFR 17.31 and 17.71 is a superior choice from a policy perspective. This approach ensures that the Service will thoughtfully consider the protections that are necessary and advisable for the conservation of each threatened species. As we noted in the 2019 rule, “[w]here we have developed species-specific 4(d) rules, we have seen many benefits, including removing redundant permitting requirements, facilitating implementation of beneficial conservation actions, and making better use of our limited personnel and fiscal resources by focusing prohibitions on the stressors contributing to the 
                    <PRTPAGE P="45725"/>
                    threatened status of the species” (84 FR 44753 at 44754, August 27, 2019). This tailored approach may reduce future permitting burdens on the Service and regulated entities alike and is intended to allow the Service to better protect threatened species. This approach also brings the Service in line with the NMFS's longstanding practice of developing species-specific 4(d) rules rather than using a “blanket rule” option which will provide entities regulated by both the Service and NMFS more certainty in process.
                </P>
                <P>Removing the future use of the “blanket rule” option will result in no immediate changes to protections for currently listed threatened species that receive “blanket rule” protections. For every species newly listed as a threatened species after this final rule takes effect, and those reclassified in the future, we will comply with section 4(d) of the Act and issue the protective regulations that are necessary and advisable to provide for the conservation of that species. As is current practice, when we are proposing to protect a threatened species with a species-specific rule, the public will be afforded an opportunity to provide public comment on the proposed regulation.</P>
                <P>
                    We are also finalizing new regulatory text at 50 CFR 17.31(d) and 17.71(d) to explain that, going forward, whenever we propose a species-specific 4(d) rule, we will ensure that each rule includes a necessary and advisable determination (including consideration of conservation and economic impacts) and we will seek public comment on that determination. We include this additional regulatory text, to provide transparency to the public about our decision-making process and to address 
                    <E T="03">Kansas Natural Resources Coalition, et al.</E>
                     v. 
                    <E T="03">USFWS, et al.</E>
                     780 F.Supp.3d 650 (W.D. Tex. 2025) (hereafter, “
                    <E T="03">Kansas Natural Resources Coalition”</E>
                    ), in which the court interpreted section 4(d) and found that the Service failed to conduct the proper “necessary and advisable” considerations in issuing its 4(d) rule by not evaluating both conservation and economic impacts. In our proposed rule (90 FR 52587, November 21, 2025), we specifically requested comments on whether we should include any requirement in the regulatory text for concurrently finalizing species-specific rules for newly listed or reclassified threatened species and decline to include this requirement at this time. As is our current practice, we intend to finalize species-specific rules concurrent with the final listing or reclassification determination. Between the time that the 2019 rule went into effect in September 2019, and when the 2024 rule went into effect on May 6, 2024, we listed or reclassified 46 threatened species (35 wildlife and 11 plant species) and published interim or final species-specific 4(d) rules for each of those species. During that time, there were no newly listed threatened species for which time elapsed between listing and putting in place protective regulations because we published either interim or final species-specific rules concurrently with each final classification action.
                </P>
                <P>
                    These final regulations do not automatically require the reevaluation of any previous use of § 17.31(a) or § 17.71(a) for species without species-specific rules. However, we have always had the discretion to revise protective regulations (
                    <E T="03">e.g.,</E>
                     revise existing species-specific rules or promulgate species-specific rules for species currently protected under a “blanket rule”) at any time if it is necessary and advisable for the conservation of a threatened species. In addition, we intend to review the current protective regulations for each threatened species in conjunction with our required status review pursuant to section 4(c)(2) of the Act. We may find during a status review that revising protective regulations for the threatened species is necessary and advisable for the conservation of that species. Depending upon other listing, delisting, and reclassification priorities, we will determine when to pursue rulemaking, which would include public notice and comment, for any changes in protective regulations.
                </P>
                <P>
                    In this final rule, we summarize and discuss the comments received in response to the proposed rule (90 FR 52587, November 21, 2025) and provide additional explanation for our final regulation revisions. In the event any provision is invalidated or held to be impermissible as a result of a legal challenge, “the remainder of the regulation could function sensibly without the stricken provision” (
                    <E T="03">Belmont Mun. Light Dep't</E>
                     v. 
                    <E T="03">FERC,</E>
                     38 F.4th 173, 187 (D.C. Cir. 2022) (quoting 
                    <E T="03">MD/DC/DE Broad. Ass'n</E>
                     v. 
                    <E T="03">FCC,</E>
                     236 F.3d 13, 22 (D.C. Cir. 2001))). Because each of the provisions stands on its own, the Service views each of the provisions as operating independently from the other provisions. Thus, should a reviewing court invalidate any particular provision(s) of this rulemaking, the remaining provisions would still allow the Service to promulgate species-specific 4(d) rules. Specifically, these distinct provisions include: (1) removing the future use of the “blanket rule” option for wildlife from 50 CFR 17.31(a); (2) adding the requirement to make a necessary and advisable determination for each wildlife species-specific 4(d) rule (50 CFR 17.31(d)); (3) removing the future use of the “blanket rule” option for plants from 50 CFR 17.71(a); and (4) adding the requirement to make a necessary and advisable determination for each plant species-specific 4(d) rule (50 CFR 17.71(d)). In the event that any portion of this final rule is held to be invalid or impermissible, the Service intends that the remaining aspects of the regulatory provisions be severable.
                </P>
                <P>In finalizing the specific changes to the regulations in this document, the Service is establishing prospective standards only. These regulations will apply to species-specific 4(d) rules finalized after the effective date of this rule and will not alter the current protections for any threatened species whether protected by a “blanket rule” or species-specific 4(d) rule. For the effective date of this rule, see DATES, above. Nothing in these revisions to the regulations is intended to require that any prior 4(d) rule be revised.</P>
                <P>
                    This rule is one of two rules publishing in today's 
                    <E T="04">Federal Register</E>
                     that revise the regulations that administer the Act.
                </P>
                <HD SOURCE="HD1">Summary of Comments and Responses</HD>
                <P>In our November 21, 2025, proposed rule (90 FR 52587), we requested public comments by December 22, 2025. We received a total of 14,620 submissions representing approximately 343,767 individuals on the proposed rule by the close of the comment period. Commenters included individual members of the public, representatives from States, Tribes, industry organizations, and environmental organizations, among others.</P>
                <P>
                    During the public comment period, we received several requests for public hearings. Public hearings are not required for regulation revisions of this type, and we elected not to hold public hearings. We also received several requests for extensions of the public comment period. However, we elected not to extend the public comment period beyond the original 30-day public comment period because we found the 30-day comment period provided sufficient time for a thorough review of the proposed revisions. The Administrative Procedure Act (APA; 5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ) does not specify a minimum number of days for a comment period, but the comment period must be long enough to afford the public a meaningful opportunity to comment. In this case, with a 30-day public comment period, the public had a meaningful opportunity to comment 
                    <PRTPAGE P="45726"/>
                    on the proposed rule, as demonstrated by the thousands of comments received.
                </P>
                <P>The primary revisions are to portions of the regulations that were previously revised in 2019 and 2024. The number of comments received indicate that members of the public were aware of the proposed rule and had adequate time to review it. In addition, we provided five informational sessions for a wide variety of audiences. Over 2,100 attendees participated in these sessions, and we addressed questions from the participants as part of the sessions. Finally, on our website, we provided additional information about the regulations, such as frequently asked questions and a prerecorded presentation on the proposed revisions.</P>
                <P>
                    Most of the submissions were nonsubstantive in nature, expressing either general opposition to or support for the proposed rule with no supporting information or analysis. We received several hundred letters with detailed substantive comments with specific rationales for support of or opposition to specific portions of the proposed rule. We also received comments that were outside the scope of the rulemaking (such as comments to amend language in 50 CFR 17.32 to align with language in 50 CFR 17.22 and require a 30-day notice and comment period for threatened species permits, comments to suspend rulemaking until ongoing litigation challenging provisions of the 2019 rule (
                    <E T="03">Ctr. for Biological Diversity</E>
                     v. 
                    <E T="03">Dep't of the Interior,</E>
                     No. 4:24-cv-04651 (N.D. Cal.)) is concluded, or comments concerning issues that may arise during implementation for future species-specific 4(d) rules) that we are not responding to here. We note that, for each future proposed species-specific 4(d) rule, the Service will provide an opportunity for public comment. Below, we summarize and respond to the significant, substantive comments we received.
                </P>
                <HD SOURCE="HD2">Removal of Blanket Rules</HD>
                <P>
                    <E T="03">Comment 1:</E>
                     Multiple commenters supported rescinding “blanket rules” as proposed, arguing that eliminating the application of a standard set of protections to newly listed threatened species would improve conservation outcomes by fostering collaboration among stakeholders, increasing regulatory flexibility, and allowing for more precise, species-specific management.
                </P>
                <P>Conversely, multiple commenters opposed rescinding the “blanket rules,” citing their precautionary value and efficiency. They detailed how “blanket rules” could be effective at conserving threatened species and argued that applying protections to threatened species immediately upon listing reduces extinction risk, addresses unknown threats, and aligns with the preventative intent of the Act. Commenters pointed out that we recently stated that there is nothing in the current regulations that prevents us from using species-specific 4(d) rules to tailor the regulations to the conservation needs of the species when needed (89 FR 23919, April 5, 2024). They also warned that removing “blanket rules” could leave threatened species with no or delayed protections, accelerating declines and undermining conservation efforts.</P>
                <P>
                    <E T="03">Response:</E>
                     Pursuant to section 4(d) of the Act, we are required to develop protective regulations that are necessary and advisable to provide for the conservation of threatened species. In addition, section 4(d) authorizes the Secretary to prohibit with respect to any threatened species any act prohibited under section 9(a) with respect to endangered species. Our protective regulations have consistently been, and will continue to be, based upon the best available scientific and commercial information.
                </P>
                <P>Although the “blanket rules” at 50 CFR 17.31(a) and 17.71(a) have been applied in an effort to conserve many threatened species, we have found that implementing species-specific 4(d) rules is a more effective and efficient use of our personnel and fiscal resources as they focus protections on the identified stressors contributing to the threatened status of the species. As noted in our 2024 rule (89 FR 23919 at 23926), species-specific 4(d) rules can incentivize known beneficial actions for species by removing or reducing regulatory burden associated with those actions and can also remove or reduce regulatory burden associated with permitting of otherwise prohibited actions or forms or amounts of “take” considered inconsequential to the conservation of the species. In turn, this information may assist with streamlining future section 7 consultations, as we recognize that in most situations it would be unlikely that additional measures would be required to further minimize take that is excepted in a 4(d) rule. Additionally, if project activities could be tailored to avoid forms of take prohibited by the 4(d) rule, consultation should be more straightforward and predictable. Furthermore, we anticipate landowners will be incentivized to take actions that would improve the status of endangered species with the possibility of downlisting the species and potentially receiving regulatory relief in the resulting 4(d) rule.</P>
                <P>For these reasons, we conclude that while blanket rules may offer administrative simplicity in some cases, species-specific rules better align with the Act's mandate to adopt regulations that are “necessary and advisable” for the conservation of threatened species and ultimately provide a more effective and efficient framework for achieving conservation outcomes. While promulgating species-specific 4(d) rules for every threatened species may require additional Service resources at the time of listing, we believe tailored species-specific protections ultimately provide regulatory time-savings for us and our conservation partners.</P>
                <P>We reiterate our intention to finalize species-specific 4(d) rules concurrently with final listing or reclassification determinations. This approach adds efficiency, predictability, and transparency to the rulemaking process because it correlates the Service's analysis of threats impacting the species (as discussed in the final listing or reclassification rule) to our analysis of protective regulations for the species. As a result, we believe these measures to increase public awareness, transparency, and predictability will enhance and expedite conservation, defined in the Act to mean “to use and the use of all methods and procedures which are necessary to bring any endangered species or threatened species to the point at which the measures provided pursuant to [the Act] are no longer necessary” (16 U.S.C. 1532(3)).</P>
                <P>
                    <E T="03">Comment 2:</E>
                     Several commenters stated that rescinding the “blanket rules” will allow for political interference and industry pressure on the Service to reduce protections for threatened species to the detriment of species conservation.
                </P>
                <P>
                    <E T="03">Response:</E>
                     As explained in the preamble to the November 21, 2025, proposed rule (90 FR 52587), the intent of this regulation is to focus protections on the stressors contributing to the threatened status of the species and to facilitate the implementation of beneficial conservation efforts with the ultimate goal of delisting the species. This practice of tailoring regulations to individual threatened species is guided by the Service's extensive history of administering the Act. Our determination of what protective regulation is necessary and advisable, as a whole, for the conservation of a given threatened species has consistently been, and will continue to be, based upon the best scientific and commercial 
                    <PRTPAGE P="45727"/>
                    data available to us at the time we promulgate the 4(d) rule.
                </P>
                <P>
                    <E T="03">Comment 3:</E>
                     Some commenters stated that there is a requirement to conduct National Environmental Policy Act (NEPA; 42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ) analyses when issuing any species-specific 4(d) rules and this requirement will slow the administrative process and may delay listings and protection of threatened species.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We disagree that NEPA compliance delays the listing of or promulgation of protective regulations for threatened species. The Service intends to promulgate 4(d) rules in conjunction with rules to list species to efficiently provide regulatory protection to species that are determined to meet the criteria for listing. As supported by case law, we are not required to conduct NEPA analysis for species-specific 4(d) rules that are promulgated concurrent with listing decisions (
                    <E T="03">Center for Biological Diversity</E>
                     v. 
                    <E T="03">U.S.F.W.S.,</E>
                     2005 WL 2000928, slip op. at 12 (N.D. Cal. Aug. 19, 2005)). As a matter of practice, we do conduct NEPA analyses when we promulgate a species-specific stand-alone 4(d) rule (
                    <E T="03">i.e.,</E>
                     not concurrent with a classification determination), consistent with case law (
                    <E T="03">In re Polar Bear Endangered Species Act Listing and 4(d) Rule Litigation,</E>
                     818 F. Supp. 2d 214, 237 (D.D.C. 2011)). Furthermore, when we revise protections for a threatened species, the existing protections remain in effect until the revised 4(d) rule is finalized avoiding any gap in regulatory protection for the species in question.
                </P>
                <P>
                    <E T="03">Comment 4:</E>
                     Commenters asserted that the proposed rule provides no evidence that the existing “blanket rules” create a regulatory burden, while their removal will likely increase administrative workload for the Service by requiring species-specific rules for each threatened species. Many pointed to the Service's substantial workload, recent staffing reductions, and limited funding, suggesting these constraints would make timely development of species-specific rules impractical and exacerbate delays. Others suggested that the proposed regulation revisions could reduce the administrative and economic burden for the Service since species-specific 4(d) rules allow the Service to focus regulatory attention on specific activities that contribute to the threatened status.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Developing species-specific 4(d) rules is a prudent and efficient use of our resources because of the benefits gained from tailoring protections specific to the conservation needs of the species. From the period after the “blanket rules” were put into place in 2024 to current, we have finalized 5 species-specific rules and did not apply either of the “blanket rules” to any threatened species. Similar information regarding use of the “blanket rules” is available related to the previous rulemaking that rescinded the “blanket rules” (RIN 1018-BC97; 84 FR 44753, August 27, 2019; 
                    <E T="03">https://www.regulations.gov/document/FWS-HQ-ES-2018-0007-69539</E>
                    ). In general, the provisions of a 4(d) rule should be closely tied to the species' needs and primary factors influencing the biological status identified in the species status assessment report or other analysis of the species' biological status. Determining which protective regulations are appropriate for a species requires us to address the stressors leading to threatened species status. This determination logically flows from our analyses at the time of listing. In sum, because the analysis of all factors influencing the species has already been completed to inform the listing determination, we anticipate the development of species-specific protective regulations addressing these same factors concurrently will be more efficient. As discussed in our 2019 rule, we intend to review existing species-specific 4(d) rules that could be used as a model or applied to the species in question. For example, the Service has existing species-specific 4(d) rules for certain threatened fish species, which are found at 50 CFR 17.44(a), (c) and (h), that include protective regulations for multiple species. Where appropriate, the Service adds additional listed species of fish to the appropriate rule. This approach would be beneficial when there are species with similar threats or that occur in a similar geographic area, or species with similar life histories or similar biological needs. Therefore, in these situations, developing species-specific regulations will not be as time consuming or burdensome as the commenters predict because the Service will be able to rely on existing regulatory language. Similar examples include the Service's existing species-specific 4(d) rules for Mazama pocket gophers (50 CFR 17.40(a)), crocodilians (50 CFR 17.42(c)), and stoneflies (50 CFR 17.47(c)). Regardless of whether we ultimately add a new species to an existing regulation in the CFR, we will always conduct individual analyses for each species and make species-specific necessary and advisable determinations.
                </P>
                <P>As previously discussed, we also anticipate that while promulgating species-specific 4(d) rules for every threatened species may require additional Service resources at the time of listing, tailored species-specific protections ultimately provide regulatory time-savings for us, our conservation partners and the regulated community, and lead to better species conservation. Of the currently listed threatened species, approximately 48 percent of wildlife species and 6 percent of plant species are protected with species-specific 4(d) rules.</P>
                <P>
                    <E T="03">Comment 5:</E>
                     Several commenters suggested that when using the “blanket rule” protections, threatened species were treated the same as endangered species. Some indicated this resulted in overprotection and supported removal of “blanket rules” to reinstate meaning to the distinction between endangered species and threatened species, and others supported the similar treatment and supported maintaining “blanket rules.” Some commenters support removing automatic protections for endangered species as well.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The “blanket rules” do not treat threatened species exactly the same as endangered species. The Act's section 9(a) prohibitions that apply to an endangered species also apply to a threatened species protected by a “blanket rule,” however, the “blanket rules” also include broader exceptions to prohibitions than those included in our regulations for endangered species. Our endangered species regulations include a suite of exceptions, which allow for various entities to conduct otherwise prohibited acts without a permit under the Act (
                    <E T="03">e.g.,</E>
                     any person may take endangered wildlife in defense of their own life or the lives of others; Federal and State law enforcement officers may possess, deliver, carry, transport, or ship any endangered wildlife taken in violation of the Act as necessary in performing their official duties; certain individuals can take wildlife to aid, salvage, or dispose of endangered species). Protections for threatened species under the “blanket rules” also include these standard exceptions; however, because threatened species are not in danger of extinction but are likely to become so within the foreseeable future, we provided additional flexibility for managing threatened species. At 50 CFR 17.31(b) and 17.71(b), the exceptions are more numerous and broader than those for endangered species. These include additional exceptions for the FWS to conduct conservation actions such as habitat restoration that would cause “take” that would otherwise be prohibited under the Act without a permit. These provisions also include broader exceptions for agents or employees of State conservation 
                    <PRTPAGE P="45728"/>
                    agencies operating a conservation program in accordance with section 6(c) of the Act to conduct actions otherwise prohibited without a permit. Additionally, the general threatened species permitting provisions promulgated under the authority of section 4(d) at 50 CFR 17.32(a) provide broader issuance criteria and require less process than endangered species permitting provisions at 50 CFR 17.22(a) promulgated under the authority of section 10(a)(1)(A) of the Act, which also require compliance with section 10(c), section 10(d), and 50 CFR 17.22(d).
                </P>
                <P>With regard to the comment about removing automatic protections for endangered species, section 9(a) of the Act prescribes the prohibitions for endangered species. We cannot alter these prohibitions through regulatory revisions.</P>
                <P>
                    <E T="03">Comment 6:</E>
                     We received a few comments on topics that were not specifically addressed in our proposed regulatory amendment but instead focus on issues that may arise during implementation of this rulemaking. These included recommendations for future guidance documents or for consideration when developing individual species-specific 4(d) rules.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The Service appreciates these comments and suggestions on developing species-specific 4(d) rules. While that input may inform the development of future species-specific 4(d) rules, policies, or guidance, those comments are outside the scope of this rulemaking. To the extent commenters raised questions about the substance of future species-specific 4(d) rules that have not been proposed, we urge commenters to provide this feedback as applicable in the development of future species-specific 4(d) rules.
                </P>
                <P>
                    <E T="03">Comment 7:</E>
                     Multiple commenters stated that aligning our approach with NMFS is not a valid argument for rescinding the “blanket rules.” Some commenters pointed out that the FWS is responsible for many more species than NMFS and we may experience delays in crafting species-specific rules due to the higher administrative burden. Commenters also asserted that there is no good reason why alignment with NMFS is necessary or beneficial as the agencies have had different approaches for decades without issues and this is not mandated by the Act. Some commenters stated that the NMFS approach does not provide a model of efficacy to justify FWS alignment, because NMFS does not consistently promulgate species-specific 4(d) rules for threatened species. Commenters suggested that NMFS should instead adopt the “blanket rule” if consistency between the agencies is the goal. Other commenters supported aligning our approach with NMFS and suggested that NMFS has demonstrated success in implementing species-specific rules given their higher recovery rates of species than the Service despite not using the “blanket rules.”
                </P>
                <P>
                    <E T="03">Response:</E>
                     As noted above, Executive Orders and S.O. 3418 provided the impetus for our rulemaking; because the “blanket rule” was exclusive to FWS, NMFS did not participate in this rulemaking. Comments asserting actions NMFS should take are beyond the scope of this rulemaking. We are removing the potential for default application of the “blanket rules” as our preferred policy approach and recognize this will align our practice with NMFS for future threatened species listings.
                </P>
                <P>
                    <E T="03">Comment 8:</E>
                     Some commenters raised concerns regarding the ability of the Service to implement U.S. treaty obligations for threatened species that are also listed on the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Appendices. One of the commenters raised concerns about complicating permitting and confusing the regulated community by setting different standards for different threatened species listed at different times and about reducing the ability to prohibit and place permitting requirements on the import of foreign threatened species listed on the CITES Appendices. The commenter noted that CITES specifically allows countries to have such so-called “stricter domestic measures” beyond those required by CITES. They believe the conservation of the species necessitates the added scrutiny provided through administering ESA import permit requirements for threatened species by the United States, and they fear that eliminating the “blanket rules” for future threatened species listings will reduce the conservation benefit of the ESA to CITES implementation. Another commenter expressed concern that if ESA protections relating to prohibitions on import, export, and trade under section 9(a) are not applied to threatened species in the United States by default, the United States would be unable to prohibit trade contrary to the requirements of CITES.
                </P>
                <P>
                    <E T="03">Response:</E>
                     This rulemaking does not affect the ability of the Service to implement U.S. treaty obligations for species listed on the CITES Appendices that are also threatened species under the Act. The purpose of CITES is to regulate international trade in plants and animals to ensure such trade is legal and does not threaten the survival of species in the wild. The ESA, in part, implements CITES and its Appendices of CITES-listed species into U.S. law (see 16 U.S.C. 1532(4), 1537a, 1538(c), 1540; 50 CFR part 23). Separately, the ESA also provides Federal protection to species listed as endangered or threatened pursuant to section 4 of the ESA. As the commenter notes, Parties to the Convention may enact stricter domestic measures over the conditions of trade in CITES specimens, making CITES “a floor, not a ceiling, for protection” of CITES species (see 
                    <E T="03">Safari Club Int'l</E>
                     v. 
                    <E T="03">Zinke,</E>
                     878 F.3d 316, 321-322 (D.C. Cir. 2017) (citing CITES Art. XIV(1), 27 U.S.T. at 1108)). The listing of endangered species and threatened species and protections afforded thereto by the ESA are an example of a stricter domestic measure. The listing of a species as endangered or threatened under the ESA does not depend on whether or how it is listed under CITES and vice versa (see 16 U.S.C. 1532(6), 1532(20), 1533(a)(1), 1533(d), 1538(a); 50 CFR part 17; 50 CFR part 424). The two legal regimes have separate lists of protected wildlife (compare 50 CFR 23.91, 23.7, CITES Appendices (available at 
                    <E T="03">https://cites.org/eng/app/appendices.php</E>
                    ) with 50 CFR 17.11-17.12 (ESA lists), 16 U.S.C. 1533(c)). The two legal regimes have separate listing processes and species are listed pursuant to separate criteria (compare CITES Art. II, XV, XVI; CITES Resolution Conf. 9.24 (Rev. CoP17) on Criteria for amendment of Appendices I and II (available at 
                    <E T="03">https://cites.org/eng/res/index.php</E>
                    ); 50 CFR 23.89, 23.87 with 16 U.S.C. 1533(a)-(b); 50 CFR part 424). The prohibitions that attach to CITES species and ESA species under the ESA are also separate (compare CITES Arts. II(4), VIII; 16 U.S.C. 1538(c); 50 CFR 23.13 (CITES species prohibitions) with 16 U.S.C. 1538(a), 1533(d); 50 CFR 17.21, 17.31, 17.61, 17.71 (ESA species prohibitions)). The permitting processes for CITES species and ESA species under the ESA are also separate (compare CITES Arts. III-VII; 16 U.S.C. 1537a; 50 CFR part 23 (CITES species permitting provisions) with 16 U.S.C. 1539(a)-(d), 1533(d); 50 CFR 17.22, 17.32, 17.62, 17.72 (ESA species permitting provisions)). In short, a species may be listed under either, both, or neither the CITES Appendices and the ESA lists of endangered and threatened wildlife and plants.
                </P>
                <P>
                    The commenter is also incorrect that removal of the future use of the “blanket rule” option and use of species-specific 4(d) rules for future threatened listings would preclude prohibiting the import 
                    <PRTPAGE P="45729"/>
                    of threatened species. If a species-specific 4(d) rule prohibits import, then an import permit is required unless the species-specific 4(d) rule provides a separate exception. See 
                    <E T="03">Safari Club Int'l</E>
                     v. 
                    <E T="03">Zinke,</E>
                     878 F.3d 316, 328-29 (D.C. Cir. 2017) (“[s]ection 9(c)(2) in no way constrains... section 4(d) authority to condition the importation of threatened Appendix-II species. . .”); see also 71 FR 20168 at 20170-20171, April 19, 2006; 72 FR 48402 at 48404-48405, August 23, 2007. To the extent that the commenter is referring to section 9(c)(2) of the Act and our implementing regulations at 50 CFR 17.8, which provides an import exemption for qualifying imports of threatened species that are CITES Appendix-II wildlife, nothing in this rulemaking affects the operation of 50 CFR 17.8. As a result, these provisions continue to provide the limited exception to the § 17.31(a) prohibition against the importation of threatened wildlife for species that are currently subject to the provisions of the “blanket rule” and that are also included in CITES Appendix II (provided that the other requirements of 50 CFR 17.8(b) are also met).
                </P>
                <P>
                    <E T="03">Comment 9:</E>
                     One commenter suggested that nearly all zoos are impacted by ESA regulations including the current “blanket rules.” They suggest that under the current rule, zoos holding threatened species are required to go through burdensome, costly and unreasonably lengthy permitting processes. They suggest the “blanket rules” are overly burdensome and inefficient and not consistent with the congressional intent of the ESA to impose the enhancement and other permitting requirements applicable to species that are listed as threatened because they do not have a species-specific 4(d) rule.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The commenter suggests that “blanket rules” and species-specific rules include different permit processes or standards to obtain a permit for an otherwise prohibited act. For both threatened species protected by “blanket rules” and threatened species protected by species-specific rules, we issue permits pursuant to our general threatened species permitting regulations at 50 CFR 17.32 (wildlife) or 17.72 (plants) unless we specifically state otherwise in the species-specific rule (see 50 CFR 17.31(c) and 50 CFR 17.71(c)). The revisions in this final rule do not change the permitting regulations at 50 CFR 17.32 or 17.72.
                </P>
                <P>State Protections</P>
                <P>
                    <E T="03">Comment 10:</E>
                     A commenter requested that we clarify that section 4(d) rules are not intended to serve as a general compensatory mitigation authority and that any mitigation requirements under section 4(d) must be directly tied to conserving the species, not broader landscape policy goals. The commenter also requested that we indicate that where States have existing mitigation frameworks already in place, such as Wyoming, the Service should defer to the State management scheme that provides a structured mechanism for addressing certain impacts. The commenter suggested that any future section 4(d) rules should complement, not duplicate or conflict with, those frameworks.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Species-specific 4(d) rules are one of the tools that contribute to the conservation of threatened species. Species-specific 4(d) rules do not serve as a general compensatory mitigation authority. As part of the promulgation of these rules, we must determine that the rule is necessary and advisable to provide for the conservation of the species which is informed by the consideration of conservation and economic impacts as described in 50 CFR 17.31(d) and 50 CFR 17.71(d). In promulgating species-specific 4(d) rules, we consider existing conservation efforts and regulatory protections and may incorporate these actions in our species-specific 4(d) rules as appropriate.
                </P>
                <P>
                    Further, we recognize the authorities given to States in section 6 of the Act to conserve listed species and the partnership with the Service and States in conserving federally listed species. As stated in our “Revised Interagency Cooperative Policy Regarding the Role of State Agencies in Endangered Species Act Activities” (81 FR 8663, February 22, 2016), it is our practice to coordinate and collaborate with State agencies in developing the scientific foundation upon which the Service bases determinations for listing actions, including 4(d) rules that specify the prohibitions necessary and advisable for the conservation of species listed as threatened. We note that the preemptive effect of the Act and implementing regulations in part 17 with regard to State laws for endangered species or threatened species is pursuant to section 6(f) of the Act (see 16 U.S.C. 1535(f); the Supremacy Clause of the U.S. Constitution; 
                    <E T="03">H.J. Justin &amp; Sons, Inc.</E>
                     v. 
                    <E T="03">Deukmejian,</E>
                     702 F.2d 758, 759-60 (9th Cir. 1983); 
                    <E T="03">Man Hing Ivory &amp; Imports, Inc.</E>
                     v. 
                    <E T="03">Deukmejian,</E>
                     702 F.2d 760 (9th Cir. 1983); 
                    <E T="03">Cresenzi Bird Importers, Inc.</E>
                     v. 
                    <E T="03">New York,</E>
                     658 F. Supp. 1441, 1444-46 (S.D.N.Y. 1987), summarily aff'd, 831 F.2d 410 (2d Cir. 1987)).
                </P>
                <P>
                    <E T="03">Comment 11:</E>
                     One commenter expressed concern that adopting the practice of promulgating species-specific rules for each new listing would supersede the existing rule that provides States the authority to manage threatened species consistent with section 6 of the Act. They noted that each rule would go through a public process, opening it up for challenges on a case-by-case basis and suggested that over time, this practice may erode States' ability to conserve and recover imperiled species while significantly increasing workload and costs of implementation. They suggested additional regulation revisions to ensure that, at a minimum, States' level of management effectiveness that exists now (
                    <E T="03">e.g.,</E>
                     under 50 CFR 17.31) be maintained.
                </P>
                <P>
                    <E T="03">Response:</E>
                     As previously mentioned, we recognize the authorities given to States in section 6 of the Act to conserve listed species and the partnership among the Service and the States in conserving federally listed species. We made revisions to our regulations (50 CFR 17.31(c) and 17.71(c)) in 2024 that clarified that our exceptions at 50 CFR 17.31(b) and 17.71(b) providing State conservation agencies the authority to “take” threatened species when carrying out conservation programs always apply unless a species-specific 4(d) rule specifically prohibits that exception (89 FR 23919, April 5, 2024). Therefore, for all threatened species currently protected by species-specific rules and any threatened species protected by a species-specific rule in the future, State agencies with a section 6 cooperative agreement do not require permits under the Act for take of those threatened species while operating a conservation program pursuant to the terms of an approved cooperative agreement unless we specifically state otherwise in the associated rule.
                </P>
                <P>With regard to the comment about a public process, we are required to follow APA notice and comment procedures for all 4(d) rules. There is no change regarding this requirement as a result of this final rulemaking.</P>
                <P>
                    <E T="03">Comment 12:</E>
                     Commenters oppose the removal of the “blanket rules” because they suggest it could lead to inconsistent protections of threatened species across States, increasing extinction risk of species.
                </P>
                <P>
                    <E T="03">Response:</E>
                     The Act requires that the Service issue protective regulations under section 4(d) that are necessary and advisable to provide for the conservation of threatened species. While we may develop species-specific 4(d) rules with protections that vary across a species' range, this would be due to varying degrees of threats for the species and in line with the conservation needs of the species. We 
                    <PRTPAGE P="45730"/>
                    therefore do not foresee a risk of inconsistencies in threatened species protections across States, unless the best scientific and commercial data available indicates that certain protections should be tailored to a specific geographic area, with rationale provided within the species-specific 4(d) rulemaking.
                </P>
                <HD SOURCE="HD2">Blanket Rule Option</HD>
                <P>
                    <E T="03">Comment 13:</E>
                     Multiple commenters remarked on whether “blanket rules” are legal under the Act, whether they are the best interpretation of the Act, and whether they are consistent with congressional intent. Some commenters suggested that the “blanket rules” are unlawful because the statutory language and legislative history indicate that Congress intended for the protections for threatened species to differ from, and be more flexible than, the protections for endangered species, as well as for the Service to develop a separate and individualized set of protective regulations for each threatened species. Commenters also suggested that use of a “blanket rule” option is inconsistent with the best reading of the Act as required by 
                    <E T="03">Loper Bright</E>
                     and that the Service may only issue protective regulations for threatened species—including those prohibiting take—on a species-by-species basis, and only after determining that such regulation is “necessary and advisable for the conservation” of that species. Commenters noted that prior to 
                    <E T="03">Loper Bright,</E>
                     and analyzed under the 
                    <E T="03">Chevron</E>
                     framework (
                    <E T="03">Chevron, U.S.A., Inc.</E>
                     v. 
                    <E T="03">NRDC, Inc.,</E>
                     467 U.S. 837 (1984)) in which Federal courts defer to administrative agencies' reasonable interpretations of ambiguous statutes), at least one court upheld a “reasonable and permissible” reading of the ESA to allow for “blanket rules” (
                    <E T="03">Sweet Home Chapter of Communities for a Greater Oregon</E>
                     v. 
                    <E T="03">Babbitt,</E>
                     1 F.3d 1, 8 (D.C. Cir. 1993), 
                    <E T="03">modified on other grounds on reh'g,</E>
                     17 F.3d 1463 (D.C. Cir. 1994), 
                    <E T="03">rev'd on other grounds,</E>
                     515 U.S. 687 (1995) (hereafter, “
                    <E T="03">Sweet Home”</E>
                    )). However, they suggest this is not necessarily what a court would determine under 
                    <E T="03">Loper Bright.</E>
                </P>
                <P>
                    On the other hand, other commenters viewed the “blanket rules” as lawful (citing to 
                    <E T="03">Sweet Home</E>
                    ) and consistent with congressional intent. These commenters pointed out that we previously explained how “blanket rules” further the purposes of the Act by allowing the Service to protect species quickly without having to develop a new set of regulations for each species, and that courts have upheld the “blanket rules” (89 FR 23919 at 23924, April 5, 2024).
                </P>
                <P>
                    Further commenters stated that we misconstrued the Supreme Court's ruling in 
                    <E T="03">Loper Bright</E>
                     because there was nothing in the Court's decision that compels or even supports the decision to revise the implementing regulations. Further, these commenters stated that referring to the Court's decision does not sufficiently justify the Service's change in position or provide a rational basis to rely on for the revisions to the regulations because it does not change how agencies interpret statutes or promulgate regulations. These commenters stated 
                    <E T="03">Loper Bright</E>
                     requires courts, when reviewing an agency action, to determine the “best reading” of a statute rather than defer to an agency's interpretation of ambiguous statutory language (603 U.S. at 400).
                </P>
                <P>
                    <E T="03">Response:</E>
                     As we stated in the preamble to our 2019 rule and 2024 rule, the application of the “blanket rules” is legal, consistent with congressional intent, and consistent with a permissible reading of section 4(d) of the Act as found by the court in 
                    <E T="03">Sweet Home</E>
                     (1 F.3d at 8
                    <E T="03">;</E>
                     (“[W]e find it far from clear that 16 U.S.C. 1533(d) requires the FWS to extend protections to threatened species on a species-by-species basis . . . In light of the statute's ambiguity, [50 CFR 17.31(a)] is a reasonable and permissible construction of the ESA.”).
                </P>
                <P>
                    We recognize that we have reversed our position on the best approach in administering section 4(d) of the Act several times in these previous rulemakings. Most recently in our 2025 proposed rule preamble we referred to 
                    <E T="03">Loper Bright</E>
                     to support revision of the regulations to remove the “blanket rules.” We note that 4(d) blanket rules come in multiple forms. As the subject of this rulemaking, the revisions to the regulations to remove the “blanket rules” in 17.31(a) and 17.71(a) relate to rescinding the blanket application of section 9(a) prohibitions as a potential default for newly listed threatened species absent a species-specific 4(d) rule. Other 4(d) “blanket rules” relate to the promulgation of exceptions to prohibitions for threatened species (such as 17.31(b), 17.71(b)) and permitting provisions (such as 17.32(a), 17.72(a)) that are generally applicable to threatened species absent a species-specific 4(d) rule.
                </P>
                <P>
                    We consider removing the 
                    <E T="03">automatic application</E>
                     of the “blanket rule” option from 50 CFR 17.31(a) and 17.71(a) to be a preferred choice from a policy perspective. As discussed above, through our experience promulgating species-specific 4(d) rules, we have seen many benefits, including incentivizing known beneficial actions for the species by removing or reducing regulatory burden associated with those actions and removing or reducing regulatory burden—both on the Service and regulated entities—associated with permitting of otherwise prohibited actions or forms or amounts of “take” considered inconsequential to the conservation of the species. Therefore, considering these past decisions and our experience administering the Act, we find that revising the regulations to remove the automatic “blanket rule” option for future listings is the most appropriate way for the Service to administer section 4(d) of the Act.
                </P>
                <P>
                    <E T="03">Comment 14:</E>
                     We received multiple comments in opposition to or in support of including the new provision in 50 CFR 17.31(d) and 17.71(d) requiring the Service to make a necessary and advisable determination for all species-specific 4(d) rules going forward. Some commenters stated that this requirement is unnecessary if the section 4(d) rule includes only extension of section 9(a) prohibitions and exceptions to those prohibitions (see 
                    <E T="03">In re: Polar Bear Endangered Species Act Listing and 4(d) Rule Litigation,</E>
                     818 F. Supp. 2d 214, 228 (D.D.C. 2011) (citing 
                    <E T="03">Sweet Home</E>
                    ) and 
                    <E T="03">State of Louisiana ex rel. Guste</E>
                     v. 
                    <E T="03">Verity,</E>
                     853 F.2d 322, 332-33 &amp; n.22 (5th Cir. 1988)). Other commenters stated a necessary and advisable determination is required for all section 4(d) rules as a matter of statutory construction; that is, a regulation prohibiting take is merely an example of the types of regulations that could be promulgated and the necessary and advisable finding must apply to those regulations (see 
                    <E T="03">Home Depot U.S.A., Inc.</E>
                     v. 
                    <E T="03">Jackson,</E>
                     587 U.S. 435, 441 (2019)). Some commenters noted 
                    <E T="03">Sweet Home</E>
                     deferred to the Service under the now-overruled 
                    <E T="03">Chevron</E>
                     doctrine and suggest this is not necessarily what a court would determine under 
                    <E T="03">Loper Bright.</E>
                     Further, commenters stated that recent case law supports the requirement to include a necessary and advisable determination for all section 4(d) rules (see 
                    <E T="03">Kansas Natural Resources Coalition</E>
                    ).
                </P>
                <P>
                    <E T="03">Response:</E>
                     Regardless of whether or not we are required to make such a determination, we have chosen to be as transparent as possible and explain why, as a whole, each species-specific 4(d) rule is necessary and advisable to provide for the conservation of threatened species. This is in line with our past practice and with what we stated was our intention in our 2024 rule (89 FR 23919 at 23922, April 5, 2024). For species-specific 4(d) rules, we will continue to include the 
                    <PRTPAGE P="45731"/>
                    rationale for why the rule as a whole is necessary and advisable to provide for the conservation of the species that is the subject of the rule.
                </P>
                <P>
                    <E T="03">Comment 15:</E>
                     We received multiple comments on the new provision in 50 CFR 17.31(d) and 17.71(d) regarding the additional requirement to consider conservation and economic impacts as part of the required necessary and advisable determination for all species-specific 4(d) rules. Some commenters stated that the Service is required to consider economic costs and benefits of a section 4(d) rule to ensure that it is in fact necessary and advisable. For example, commenters cited to 
                    <E T="03">Michigan</E>
                     v. 
                    <E T="03">Environmental Protection Agency,</E>
                     576 U.S. 743 (2015) (hereafter, “
                    <E T="03">Michigan</E>
                     v. 
                    <E T="03">EPA”</E>
                    ), which discusses the phrase “appropriate and necessary,” where the Supreme Court held that similar statutory standards require the consideration of all relevant factors, including economic impacts. They also pointed out that earlier this year, a district court determined expressly that 
                    <E T="03">Michigan</E>
                     v. 
                    <E T="03">EPA</E>
                     applies to section 4(d) of the Act (
                    <E T="03">Kansas Natural Resources Coalition</E>
                    ) and that, both prior to and since 
                    <E T="03">Michigan</E>
                     v. 
                    <E T="03">EPA</E>
                     was issued, courts have found that similar types of broad grants of authority to agencies must include some consideration of economic impacts (
                    <E T="03">e.g., Mexican Gulf Fishing Co.</E>
                     v. 
                    <E T="03">U.S. Dep't of Commerce,</E>
                     60 F.4th 956, 965 (5th Cir. 2023), hereafter, “
                    <E T="03">Mexican Gulf Fishing Co.”</E>
                    ). Several commenters suggested the proposed revision means that the Service will have new discretion regarding whether any protective regulations under section 4(d) are necessary for species proposed for listing and supported the Service exercising this discretion.
                </P>
                <P>
                    In contrast, many commenters disagreed and stated that the consideration of economic impacts is unlawful because the Act clearly articulates where economic impacts should be considered, for example, in section 4(b)(2) which pertains to critical habitat designations (“shall designate critical habitat . . . after taking into consideration the economic impact, the impact on national security, and any other relevant impact”) and section 4(f)(1) which pertains to recovery plans (“incorporate in each plan . . . estimates of the time required and the cost to carry out those measures needed to achieve the plan's goal and to achieve intermediate steps toward that goal”). These commenters also stated that the Service's own guidance (U.S. Fish and Wildlife Service, “Guidance for Development of Species-Specific 4(d) Rules Under the Endangered Species Act” (
                    <E T="03">https://www.fws.gov/sites/default/files/documents/guidance-for-4d-rules-under-the-endangered-species-act_0.pdf</E>
                    )) does not include any reference to economic impacts playing a role in determining what protective regulations to promulgate. Commenters also state the Service's reliance on 
                    <E T="03">Kansas Natural Resources Coalition</E>
                     (which cited 
                    <E T="03">Michigan</E>
                     v. 
                    <E T="03">EPA</E>
                     and 
                    <E T="03">Mexican Gulf Fishing Co.</E>
                    ) was flawed. These commenters suggested that those courts ignored the distinction in the purposes of the statutes relevant in those cited cases from the purpose of the ESA which is to conserve species, citing 
                    <E T="03">TVA</E>
                     v. 
                    <E T="03">Hill</E>
                     437 U.S. 153, at 184 (1978) and its holding that “[t]he plain intent of Congress in enacting [the ESA] was to halt and reverse the trend toward species extinction, whatever the cost.”
                </P>
                <P>
                    <E T="03">Response:</E>
                     We recognize that section 4(d) of the Act does not refer to an analysis of economic impacts or estimate of costs in the same way as sections 4(b)(2) and 4(f). We also acknowledge that we came to a different conclusion in our 2024 final rule (89 FR 23919 at 23933-23934, April 5, 2024); however, we are including this requirement in regulations in response to 
                    <E T="03">Kansas Natural Resources Coalition</E>
                     and to increase transparency in our rulemaking process. In determining what protective regulation, as a whole, is necessary and advisable to provide for the conservation of a threatened species, we will consider both the conservation needs of the species and then consider the conservation and economic impacts of the 4(d) rule.
                </P>
                <HD SOURCE="HD2">Current Threatened Species</HD>
                <P>
                    <E T="03">Comment 16:</E>
                     Some commenters agreed with, and several commenters expressed concern about, our intention stated in the proposed rule to reevaluate current protections for all threatened species currently protected under “blanket rules.” Commenters suggested this was not an efficient use of Service resources given existing workload and classification backlog.
                </P>
                <P>
                    <E T="03">Response:</E>
                     As discussed in Regulatory Revisions, above, we intend to review protective regulations for each threatened species in conjunction with our required status reviews pursuant to section 4(c)(2) of the Act. We may find that revising protective regulations is necessary and advisable for the conservation of a given species. Depending upon other listing, delisting, and reclassification priorities, we will determine when to pursue rulemaking, which would include public notice and comment, for any changes in protective regulations.
                </P>
                <HD SOURCE="HD2">Required Timeframes for Species-Specific Rules</HD>
                <P>
                    <E T="03">Comment 17:</E>
                     Several commenters recommended that we finalize regulations to require final species-specific 4(d) rules to be published concurrently with final listing determinations. Commenters suggested a variety of alternative timelines (
                    <E T="03">e.g.,</E>
                     30-180 days after listing or reclassification). They argued that this approach would provide clarity and certainty for stakeholders, ensure timely protections for threatened species, and prevent gaps in protection that could occur between listing or reclassification and the development of species-specific regulations. Others suggested this practice would ease the Service's administrative burden by ensuring the Service only has to receive and respond to one round of public comments and finalize one rulemaking as opposed to two.
                </P>
                <P>
                    Other commenters argued against including any timeframes in regulations. They stated that the Act does not require it and it would only create new opportunities for missed-deadline litigation. Alternatively, multiple commenters stated that the Act does in fact require concurrent section 4(d) rules regardless of what is in regulation. For instance, one commenter reasoned that section 4(d) directs the agency to issue species-specific 4(d) rules concurrently with listing because it “ `. . . provides that `[w]henever any species is listed as a threatened species[,] the Secretary shall issue such regulations as he deems necessary and advisable to provide for the conservation of such species' (16 U.S.C. 1533(d)). `Whenever' means `at whatever time,' and the term `shall' creates a mandatory duty.” They suggest the wording “. . . as he deems necessary and advisable” in section 4(d) of the Act makes it unclear whether the Secretary has discretion about whether or not to issue regulations, or whether these are required under the law. Others argued that without a mandatory timeframe, the Service could promulgate species-specific rules at any time, which departs from the Act's directive to use all available resources and authority to conserve threatened species (see 16 U.S.C. 1531(b), (c)(1), 1533(d), 1536(a)(1)). At least one commenter noted that the requirement to issue a species-specific 4(d) rule concurrently with the listing of a threatened species is also bolstered by the legislative history. They specifically reference S. Rep. No. 93-307, 93d Cong., 1st Sess. 8 (1973) which states that section 4(d) “requires the Secretary, 
                    <PRTPAGE P="45732"/>
                    once he has listed a species of fish or wildlife as a threatened species, to issue regulations to protect that species.”
                </P>
                <P>
                    <E T="03">Response:</E>
                     We decline to include any timeframes in these regulations. We intend to continue to finalize species-specific 4(d) rules concurrently with final listing rules. We agree this approach is the most efficient. As we point out above, during the period from 2019 to 2024 when “blanket rules” at 50 CFR 17.31(a) and 17.71(a) were not available for new threatened species listings and during the time period after we reinstated the “blanket rules,” we consistently published either interim or final species-specific 4(d) rules concurrently with final listing rules.
                </P>
                <HD SOURCE="HD2">Required Determinations and Other Legal Requirements</HD>
                <P>
                    <E T="03">Comment 18:</E>
                     Several commenters stated that we did not provide enough justification or logical rationale for the rescission of the “blanket rules” and suggested that we did not comply with the APA. For example, commenters suggested that we did not provide a transparent, reasoned explanation for the proposed changes or a complete and transparent analysis. Some commenters stated that, at a minimum, the Service has not shown that there are good reasons for the new policy (see 
                    <E T="03">FCC</E>
                     v. 
                    <E T="03">Fox Television Stations, Inc.,</E>
                     556 U.S. 502, 515 (2009); hereafter, 
                    <E T="03">FCC</E>
                     v. 
                    <E T="03">Fox</E>
                    ). One commenter expressed concern about the Service's reliance on the APA's “good cause” exception (suggesting that we promulgated the rule without notice and comment and instead provided an immediate effective date for the rule).
                </P>
                <P>
                    <E T="03">Response:</E>
                     We do not agree with the assertion that we did not provide enough justification or logical rationale for the rule in compliance with the APA. We published our proposal, broadly explained our proposed revisions, explained our rationale for changes, and explicitly asked for public comment. We have now reviewed the public comments and in this final rule have provided responses to relevant, significant comments. We have provided the public with our rationale and a meaningful opportunity to comment on all aspects of the proposed rule. Thus, the process that we used to promulgate this rule complied with the applicable requirements of the APA. The process for revising regulations is governed by the APA as interpreted by relevant case law, with which the Service has complied fully.
                </P>
                <P>
                    Contrary to a commenter's assertion, we did not rely upon the APA's “good cause” exception and did not publish a rule with an immediate effective date. We published notice of the proposed rulemaking in the 
                    <E T="04">Federal Register</E>
                     (90 FR 52587, November 21, 2025), we provided an opportunity for public comment, we considered the relevant matter presented in those comments, and we have provided a rational explanation for our action.
                </P>
                <P>In our 2019 4(d) rule (84 FR 44753, August 27, 2019), we explained that we were ending the “blanket rule” option for species newly listed as threatened species after the effective date of those regulatory revisions because: It would make our regulatory approach for threatened species similar to NMFS's approach; either using “blanket rules” or promulgating species-specific rules is a reasonable approach to implementing the Secretary's discretion afforded under section 4(d) of the Act; and promulgating species-specific 4(d) rules that are tailored to the specific species can provide conservation benefits for threatened species. In our 2024 rule (89 FR 23919, April 5, 2024), we reinstated the “blanket rules” because we found, that “blanket rules” allowed for a more efficient method to protect threatened species for which we find their protections are appropriate, it is more straightforward and transparent to have species-specific 4(d) rules in one place in the CFR and “blanket rule” protections described in another, and the reinstatement of the “blanket rules” ensures there is never a lapse in threatened species protections. We now find—as explained in our preambles to the November 21, 2025, proposed rule (90 FR 52587) and this final rule—that revising the regulations to remove the future automatic application of the “blanket rule” option is the preferable choice. This tailored approach ensures that the Service will thoughtfully consider the protections that are necessary and advisable for the conservation of each threatened species, which may reduce future permitting burdens on the Service and regulated entities, facilitate implementation of beneficial conservation actions, incentivize conservation efforts from partners, and align our practices with the NMFS. We have found that implementing species-specific 4(d) rules make better use of our limited personnel and fiscal resources than the “blanket rules” by focusing protections on the specific stressors contributing to the threatened status of the species.</P>
                <P>
                    This is sufficient explanation under the Supreme Court's decision in 
                    <E T="03">FCC</E>
                     v. 
                    <E T="03">Fox</E>
                     (556 U.S. at 515), which concludes “it suffices that the new policy is permissible under the statute, that there are good reasons for it, and that the agency believes it to be better, which the conscious change of course adequately indicates.”
                </P>
                <P>
                    <E T="03">Comment 19:</E>
                     Multiple commenters argue that E.O.s 14219 and 14154, and the related S.O. 3418, do not require or support the proposed rule. Comments assert that the “blanket rules” do not place undue burden on the U.S. energy sector. At least one commenter stated that the Service needs to explain how the “blanket rules” are inconsistent with, or otherwise presented obstacles to, the policies articulated by E.O.s 14219 and 14154 and the related S.O. 3418.
                </P>
                <P>
                    <E T="03">Response:</E>
                     As explained above, while E.O.s 14154 and 14219 initiated our review, our goal in revising these regulations was to determine how best to craft protective regulations for threatened species under section 4(d) of the Act while also considering our experience administering the Act. E.O. 14154 (“Unleashing American Energy”) directed agencies to immediately review agency actions to identify those actions that potentially impose an undue burden on the identification, development, or use of domestic energy resources, and, as appropriate and consistent with applicable law, consider suspending, revising, or rescinding agency actions identified as unduly burdensome that conflict with this national objective. The subsequently issued S.O. 3418 specifically identified the 2024 regulations as needing such a review. In addition, E.O. 14219 (“Ensuring Lawful Governance and Implementing the President's “Department of Government Efficiency Deregulatory Initiative”), issued on February 19, 2025, directed agencies to review and rescind unlawful regulations that are “based on anything other than the best reading of the underlying statutory authority.” As a consequence of these actions and orders, we initiated a review of the regulations that had been finalized in 2024.
                </P>
                <P>
                    <E T="03">Comment 20:</E>
                     Commenters stated that the Service failed to comply with NEPA because we merely solicited public comment on potential impacts of the regulatory revisions rather than drafting an environmental impact statement for public input. According to the commenters, this shifts the burden to the commenters to gather and review technical environmental and economic information during the 30-day comment period, prejudicing their ability to comment and protect their rights and interests. Multiple commenters asserted that a NEPA analysis was required because the proposed regulatory revisions constitute a “major Federal action” with significant environmental impacts. Some commenters asserted that 
                    <PRTPAGE P="45733"/>
                    the Service needs to prepare an environmental assessment or environmental impact statement pursuant to NEPA for these revisions to the regulations prior to adoption of the proposed changes, and that this rulemaking action should not be categorically excluded. Specifically, they suggest that we need to take a hard look at the foreseeable impacts of the regulatory changes, along with a reasonable range of alternatives. Some commenters stated that they do not believe that the proposed regulation changes are merely administrative or procedural actions, nor would result in environmental effects that are “too broad or speculative” for analysis. Some commenters noted “extraordinary circumstances” that preclude a categorical exclusion such as “[having] significant impacts on species listed, or proposed to be listed, on the List of Endangered or Threatened Species or [having] significant impacts on designated Critical Habitat for these species” described at 43 CFR 46.215(g).
                </P>
                <P>Commenters stated that NEPA did not permit the Services to consider each of the ESA rule changes proposed on November 21, 2025, independently and the Services were instead required to consider these four regulatory actions, along with the proposed “harm” rule (90 FR 16102, April 17, 2025), collectively to avoid improperly segmenting their actions and obscuring the full environmental consequences of deregulation.</P>
                <P>
                    <E T="03">Response:</E>
                     NEPA establishes procedures for agencies to follow to determine the level of NEPA review (42 U.S.C. 4336). The Service elected to invite the public to provide comments on whether the proposed regulations may have a significant impact on the human environment, consistent with our past practice in promulgating both the 2019 and 2024 regulations. This approach did not place a burden on commenters to develop technical analyses, as one commenter suggested, nor deprive or limit their ability to participate in the comment period effectively. There is no requirement under NEPA to make any draft environmental document or categorical exclusion documentation available to the public for comment. Exceeding the statutory minimum requirements here and allowing public input on our NEPA compliance does not violate NEPA.
                </P>
                <P>
                    The Service also voluntarily solicited input from the public on the extent to which the proposed rule fell within a categorical exclusion. Per NEPA, agencies must prepare EAs for actions that do not have a reasonably foreseeable significant effect on the quality of the human environment (or if the significance of the effect is unknown) unless, 
                    <E T="03">inter alia,</E>
                     the action is excluded under one of the agency's categorical exclusions (42 U.S.C. 4336(b)(2)). We have complied with NEPA by determining that the rule is covered by a categorical exclusion found at 43 CFR 46.210(i). We explain this determination in an environmental action statement (EAS) that is posted in the docket for this rule. As explained in the EAS, this rulemaking primarily provides the framework for protections to threatened species but does not apply this framework to any species; it is not until we list a species as threatened and issue a species-specific 4(d) rule that this framework applies to that species. Because the revisions are intended to clarify, interpret, and implement portions of the Act concerning procedures for determining protective regulations for threatened species, we consider the action to be fundamentally administrative, technical, or procedural in nature. We determined that none of the extraordinary circumstances apply to this situation. We appreciate that commenters may have preferred an environmental document that analyzed a range of alternatives, but because we have a categorical exclusion that can be applied to this action, we did not prepare an EA nor was an EIS required, as set forth above.
                </P>
                <P>
                    As explained more fully in our categorical exclusion document, this rulemaking clarifies the procedures for protecting threatened species under section 4(d) of the Act but does not apply these procedures to any species. As a result, the revisions to our regulations are of an administrative, technical, legal or procedural nature and none of the extraordinary circumstances apply (see Required Determinations, below, and our supporting NEPA documentation at available at 
                    <E T="03">https://www.regulations.gov</E>
                     at Docket No. FWS-HQ-ES-2025-0029). To the extent that some commenters assert that the rules are ineligible for this categorical exclusion because they are substantive and non-ministerial, such characteristics are not the focus of the agency's categorical exclusion.
                </P>
                <P>
                    Lastly, we disagree with comments stating that the Service was required to consider all four ESA regulatory provisions proposed on November 21, 2025, as well as the rule to rescind the Services' definition of “harm” under the ESA, in one environmental document to avoid improperly segmenting their actions. Each of these rules are separate actions and are not dependent on one another, 
                    <E T="03">i.e.,</E>
                     any one of the individual rulemaking actions could proceed without any of the others and are not an interdependent part of a larger Federal action. Even within each of the separate, individual rulemaking actions, the regulatory provisions that are subject to revision can be severable from other regulatory provisions addressed in the same rulemaking action. Although each of the four regulations proposed on November 21, 2025, followed a review initiated by E.O.s 14154 and 14219 and S.O. 3418, none of these Executive or Cabinet-level orders are exclusively directed at the ESA and none of the regulations being finalized rely directly on these orders for the specific revisions we are now finalizing in this rule. We also note that two of the rules that the commenters identified (including this rule) are only applicable to FWS could not appropriately be evaluated by NMFS in any NEPA document, as NOAA and the Department of Commerce do not have decision-making authority over rules that apply only to other agencies. See NOAA Companion Manual at 34 that defines “connected action” in relevant part as “a separate Federal action within the authority of NOAA . . .”.
                </P>
                <P>
                    <E T="03">Comment 21:</E>
                     One commenter stated the proposed rule fails to fulfill the Alaska Native Claims Settlement Act (43 U.S.C. 1601-1629h).
                </P>
                <P>
                    <E T="03">Response:</E>
                     Our obligation to have a government-to-government relationship with federally recognized Tribes is paramount and is covered by S.O. 3206 and 3225. While S.O. 3225 discusses Alaska Natives and other Native organizations, its purpose is to protect subsistence rights and ways of life, and states that the Departments of Commerce and the Interior will seek to enter into cooperative agreements for the conservation of specific species, such as marine mammals and migratory birds, and the co-management of subsistence uses with these organizations.
                </P>
                <P>
                    In the Consolidated Appropriations Act of 2004 (Pub. L. 108-199, Div. H, sec. 161), Congress required that the Director of the Office of Management and Budget (and, subsequently, all Federal agencies) consult with Alaska Native Corporations (ANCs) on the same basis as Indian Tribes under E.O. 13175. Consistent with this obligation, the Service will consult on Federal decisions that have a substantial, direct effect on an ANC. This obligation to consult does not extend beyond the E.O. 13175 context and does not apply here. We will continue to collaborate with federally recognized Tribes and ANCs on a government-to-government basis on issues related to federally listed species and their habitats and will work with 
                    <PRTPAGE P="45734"/>
                    them as we administer the provisions of the ESA.
                </P>
                <P>
                    <E T="03">Comment 22:</E>
                     Some commenters suggested additional analyses are required for our required determinations (for example, Regulatory Flexibility Act, Federalism, Unfunded Mandates Reform Act, Paperwork Reduction Act, E.O. 12866, and Statement of Energy Effects). Several commenters stated that we need to complete intra-Service section 7 consultation on the rulemaking.
                </P>
                <P>
                    <E T="03">Response:</E>
                     Regarding all required determinations for the rulemaking, the primary change that this final rule makes is to put a regulatory framework in place for future application. In the future, for each threatened species, we will apply regulatory protections for that threatened species that are necessary and advisable by promulgating a species-specific 4(d) rule for that species. These changes provide transparency and clarity, and there are no identifiable, quantifiable effects from this rule. We further explain our rationale and compliance for each of the identified Required Determinations, below, in the respective sections below.
                </P>
                <HD SOURCE="HD2">Other</HD>
                <P>
                    <E T="03">Comment 23:</E>
                     One commenter requests that the Service add an additional subsection to 50 CFR 17.31 and 17.71 that would require review of take prohibitions of listed threatened species every five years.
                </P>
                <P>
                    <E T="03">Response:</E>
                     While we decline to add this requirement in regulation, we intend to review protective regulations for each threatened species in conjunction with status reviews conducted in accordance with section 4(c)(2) of the Act.
                </P>
                <P>
                    <E T="03">Comment 24:</E>
                     A commenter pointed out that in the preamble in the proposed rule, the Service clarified that the change in approach will apply to “every species newly listed as a threatened species, and those reclassified in the future,” but in the proposed amendment to 50 CFR 17.31(a) the Service states that the new text shall apply “to threatened species of wildlife that were added to the List of Endangered and Threatened Wildlife at § 17.11(h) on or prior to August 20, 2026,” and does not include the term “reclassification.” The commenter noted an identical change to 50 CFR 17.71(a) for threatened plants. They recommend that we include the term “reclassified” in the additions to § 17.31(a) and § 17.71(a).
                </P>
                <P>
                    <E T="03">Response:</E>
                     We decline to revise the regulatory text because it includes the case of reclassified species, as written. For plant and animal species listed as threatened species prior to the effective date of this final rule, protections from the “blanket rules” apply unless the species has a species-specific 4(d) rule. When either an unlisted species is listed as a threatened species or a species is reclassified from an endangered species to a threatened species after the effective date of this final rule, it is considered newly listed as a threatened species for purposes of this rulemaking because it is added as a threatened species to one of the lists at § 17.11(h) and § 17.12(h) after the effective date, and this final rule will apply.
                </P>
                <P>
                    <E T="03">Comment 25:</E>
                     One commenter requested that the Service limit protecting threatened species to only regulations that are consistent with the U.S. Constitution and requested we make specific commitments concerning the content of future rulemakings.
                </P>
                <P>
                    <E T="03">Response:</E>
                     We only promulgate regulations that are consistent with the U.S. Constitution. The specific content of future individual rulemakings is beyond the scope of this rulemaking.
                </P>
                <HD SOURCE="HD1">Required Determinations</HD>
                <HD SOURCE="HD2">Regulatory Planning and Review (Executive Orders 12866 and 13563)</HD>
                <P>E.O. 12866 provides that the Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget will review all significant rules. OIRA has determined that this rule is significant and has reviewed it. This rule is considered an E.O. 14192 deregulatory action and we anticipate cost-savings from the future implementation of the rule; however, cost-savings cannot be projected or quantified.</P>
                <P>E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the Nation's regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. E.O. 13563 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this final rule in a manner consistent with these requirements.</P>
                <HD SOURCE="HD2">Regulatory Flexibility Act (5 U.S.C. 601 et seq.)</HD>
                <P>
                    Under the Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA; title II of Pub. L. 104-121, March 29, 1996), whenever a Federal agency is required to publish a notice of rulemaking for any proposed or final rule, it must prepare, and make available for public comment, a regulatory flexibility analysis that describes the effect of the rule on small entities (
                    <E T="03">i.e.,</E>
                     small businesses, small organizations, and small government jurisdictions). However, no regulatory flexibility analysis is required if the head of an agency, or that person's designee, certifies that the rule will not have a significant economic impact on a substantial number of small entities. SBREFA amended the RFA to require Federal agencies to provide a statement of the factual basis for certifying that a rule will not have a significant economic impact on a substantial number of small entities. We certified at the proposed rule stage that the proposed rule would not have a significant economic impact on a substantial number of small entities (90 FR 52587, November 21, 2025). Nothing in this final rule changes the basis for that conclusion, and we received no information that changes the factual basis of this certification. The following discussion explains our rationale.
                </P>
                <P>
                    This rulemaking revises the Service's regulations protecting threatened species under the ESA. This final rule is fundamentally a procedural change for the Service that affects only the form of the Service's decisions with respect to regulations that provide for the conservation of threatened species. The Service is therefore the only entity that is directly affected by this regulation change at 50 CFR part 17. The statute states, “[w]henever any species is listed as a threatened species . . ., the Secretary shall issue such regulations as he deems necessary and advisable to provide for the conservation of such species.” This requires the Secretary to make a decision about what protections to apply to threatened species. Even with the “blanket rules” in place, it fell to the Secretary to decide what protections to put in place for the species. That decision was in the form of whether to allow the relevant “blanket rule” to apply or to promulgate a species-specific rule. The need for that decision is even ensconced in the “blanket rules” themselves—they expressly contemplate that the Secretary could choose to promulgate a species-specific rule that would replace the use of the “blanket rule.” With promulgation of this rule, when species get listed in the future, the “blanket rules” will no longer be in place, but the 
                    <PRTPAGE P="45735"/>
                    Secretary will still be required to make a decision about what regulations to put in place for that species. The only thing that this rulemaking will change is that the decision about what regulations to put in place will now necessarily be in the form of promulgating a species-specific rule. To the extent any regulations that provide for the conservation of threatened species affect external entities, those effects result from the substance of the subsequent rulemaking where the Service will decide what regulations would provide for the species' conservation, not from this rulemaking, which affects only the form of that decision. External entities, including any small businesses, small organizations, or small governments, are not directly regulated by this rule and thus will not experience any direct economic impacts from this rule. Therefore, we certify that this rule will not have a significant economic effect on a substantial number of small entities.
                </P>
                <HD SOURCE="HD2">Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.)</HD>
                <P>
                    In accordance with the Unfunded Mandates Reform Act (2 U.S.C. 1501 
                    <E T="03">et seq.</E>
                    ), we make the following finding:
                </P>
                <P>(a) On the basis of information contained above in the Regulatory Flexibility Act section, this rule will not “significantly or uniquely” affect small governments. We have determined and certify pursuant to the Unfunded Mandates Reform Act, 2 U.S.C. 1502, that this rule will not impose a cost of $100 million or more in any given year on local or State governments or private entities. A small government agency plan is not required. As explained above, small governments will not be affected because the rule will not place additional requirements on any city, county, or other local municipalities.</P>
                <P>(b) This rule will not produce a Federal mandate on State, local, or Tribal governments or the private sector of $100 million or greater in any year; that is, this rule is not a “significant regulatory action” under the Unfunded Mandates Reform Act. This rule will impose no obligations on State, local, or Tribal governments.</P>
                <HD SOURCE="HD2">Takings—E.O. 12630</HD>
                <P>In accordance with E.O. 12630, this rule will not have significant takings implications. This rule will not directly affect private property, nor will it cause a physical or regulatory taking. It will not result in a physical taking because it will not effectively compel a property owner to suffer a physical invasion of property. Further, the rule will not result in a regulatory taking because it will not deny all economically beneficial or productive use of the land or aquatic resources, it will substantially advance a legitimate government interest (conservation and recovery of threatened species), and it will not present a barrier to all reasonable and expected beneficial use of private property.</P>
                <HD SOURCE="HD2">Federalism—E.O. 13132</HD>
                <P>In accordance with E.O. 13132 (Federalism), this rule does not have significant federalism effects. A federalism summary impact statement is not required. This rule pertains only to the Service's protective regulations for threatened species promulgated under the ESA and will not have substantial direct effects on the States, on the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <HD SOURCE="HD2">Civil Justice Reform—E.O. 12988</HD>
                <P>This rule will not unduly burden the judicial system and meets the applicable standards provided in sections 3(a) and 3(b)(2) of E.O. 12988. This rule will revise the Service's regulations for protecting threatened species pursuant to the ESA.</P>
                <HD SOURCE="HD2">Government-to-Government Relationship With Tribes</HD>
                <P>In accordance with the President's memorandum of (“Government-to-Government Relations with Native American Tribal Governments”; 59 FR 22951, May 4, 1994), E.O. 13175 (“Consultation and Coordination with Indian Tribal Governments”), the President's memorandum of November 30, 2022 (“Uniform Standards for Tribal Consultation; 87 FR 74479, December 5, 2022”), and the Department of the Interior's manual at 512 DM 2, we considered possible effects of this rule on federally recognized Indian Tribes and Alaska Native Corporations (ANCs). An informational webinar was held for federally recognized Tribes on December 3, 2025, and in response to Tribal interest, the Services held a question-and-answer session for federally recognized Tribes on December 10, 2025, to provide additional time for Tribal input and questions. After the opening of the public comment period, we received comments, requests for coordination, or requests for government-to-government consultation from multiple Tribes.</P>
                <P>The Service has reached a conclusion that the changes to these regulations do not directly affect specific species or Tribal lands. This rule revises regulations for protecting threatened species pursuant to the Act. This rule is general in nature and does not directly affect any specific Tribal lands, treaty rights, or Tribal trust resources. Therefore, we conclude that this rule does not have Tribal implications under section 1(a) of E.O. 13175. Thus, formal government-to-government consultation is not required by E.O. 13175 and related policies of the Department of the Interior. These regulations will not have substantial direct effects 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. We will continue to collaborate with Tribes and ANCs on issues related to federally listed species and their habitats and work with them as we administer the provisions of the Act (see S.O. 3206 (“American Indian Tribal Rights, Federal-Tribal Trust Responsibilities, and the Endangered Species Act,” June 5, 1997)).</P>
                <HD SOURCE="HD2">Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)</HD>
                <P>
                    This rule does not contain any new collection of information that requires approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ). OMB has previously approved the information collection requirements associated with permitting and reporting requirements and assigned OMB Control Number 1018-0094 (expires 04/30/2027). 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>
                <HD SOURCE="HD2">National Environmental Policy Act (42 U.S.C. 4321 et seq.)</HD>
                <P>
                    We analyzed this rule pursuant to the National Environmental Policy Act (NEPA), the Department of the Interior regulations on Implementation of the National Environmental Policy Act (43 CFR part 46), and the Department of the Interior Manual Handbook of National Environmental Policy Act Implementing Procedures (516 DM 1). Federal agencies must prepare an environmental impact statement for a proposed major Federal action that would have a reasonably foreseeable significant effect on the quality of the human environment. (42 U.S.C. 4332(c)). We have determined that a detailed statement under NEPA is not required because the rule is covered by a categorical exclusion, and we prepared an EAS accordingly. Please see our supporting NEPA documentation, available at 
                    <E T="03">https://www.regulations.gov</E>
                      
                    <PRTPAGE P="45736"/>
                    at Docket No. FWS-HQ-ES-2025-0029, for additional details.
                </P>
                <P>We find that the categorical exclusion found at 43 CFR 46.210(i) applies to these regulation changes. At 43 CFR 46.210(i), the Department of the Interior has found that the following category of actions do not individually or cumulatively have a significant effect on the human environment and are, therefore, categorically excluded from the requirement for completion of an environmental assessment or environmental impact statement: Policies, directives, regulations, and guidelines: that are of an administrative, financial, legal, technical, or procedural nature; or whose environmental effects are too broad, speculative, or conjectural to lend themselves to meaningful analysis and will later be subject to the NEPA process, either collectively or case-by-case. We have also considered whether any of the extraordinary circumstances described in 43 CFR 46.215 apply, and we did not identify any extraordinary circumstances that apply to this rulemaking.</P>
                <HD SOURCE="HD2">Energy Supply, Distribution or Use—E.O. 13211</HD>
                <P>E.O. 13211 (Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use) requires agencies to prepare statements of energy effects “to the extent permitted by law” when undertaking actions identified as significant energy actions (66 FR 28355; May 22, 2001). E.O. 13211 defines a “significant energy action” as an action that (i) is a significant regulatory action under E.O. 12866 (or any successor order); and (ii) is likely to have a significant adverse effect on the supply, distribution, or use of energy. The revised regulations are not expected to affect energy supplies, distribution, and use. Therefore, this action is not a significant energy action, and there is no requirement to prepare a statement of energy effects for this action.</P>
                <HD SOURCE="HD2">
                    Endangered Species Act of 1973 (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    )
                </HD>
                <P>
                    In developing this rule, FWS is acting in our unique statutory role as administrator of the ESA and is engaged in a legal exercise of interpreting the standards of the ESA. The FWS's administration of the ESA is not in itself subject to the ESA's provisions, including section 7(a)(2). The FWS has a historical practice of issuing its general regulations under the ESA without undertaking section 7 consultation. This practice accords with the plain language, structure, and purposes of the ESA, which does not place a consultation obligation on the FWS's administration of the Act. Although the FWS consults on actions through intra-agency consultations where appropriate (
                    <E T="03">e.g.,</E>
                     issuance of section 10(a) permits and actions under statutory authorities other than the ESA), in those instances the FWS is acting principally as an “action agency” implementing provisions of the ESA or other statutes. Here, by contrast, the FWS is acting solely in our role as administrators of the ESA; we are also not administering the ESA to propose or take a specific action. The FWS is carrying out the most fundamental exercise of our role as administrator of the ESA, and the ESA cannot reasonably be construed as requiring the FWS to “consult” with ourselves under section 7(a)(2) in such cases.
                </P>
                <HD SOURCE="HD1">Authority</HD>
                <P>
                    We issue this rule under the authority of the Endangered Species Act, as amended (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 50 CFR Part 17</HD>
                    <P>Endangered and threatened species, Exports, Imports, Plants, Reporting and recordkeeping requirements, Transportation, Wildlife.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Regulation Promulgation</HD>
                <P>For the reasons discussed in the preamble, we hereby amend part 17, subchapter B of chapter I, title 50 of the Code of Federal Regulations, as set forth below:</P>
                <PART>
                    <HD SOURCE="HED">PART 17—ENDANGERED AND THREATENED WILDLIFE AND PLANTS</HD>
                </PART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>1. The authority citation for part 17 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">
                            <E T="04">Authority:</E>
                              
                        </HD>
                        <P>16 U.S.C. 1361-1407; 1531-1544; and 4201-4245, unless otherwise noted.</P>
                    </AUTH>
                </REGTEXT>
                <SUBPART>
                    <HD SOURCE="HED">Subpart D—Threatened Wildlife</HD>
                </SUBPART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>2. Amend § 17.31 by revising paragraph (a) and adding paragraph (d) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 17.31 </SECTNO>
                        <SUBJECT>Prohibitions.</SUBJECT>
                        <P>(a) Except as provided in §§ 17.4 through 17.8, or in a permit issued pursuant to § 17.32, the provisions of paragraph (b) of this section and all of the provisions of § 17.21 (for endangered species of wildlife), except § 17.21(c)(3) and (5), apply to threatened species of wildlife that were added to the List of Endangered and Threatened Wildlife at § 17.11(h) on or prior to August 20, 2026, unless the Secretary has promulgated species-specific provisions (see paragraph (c) of this section).</P>
                        <STARS/>
                        <P>(d) Each species-specific rule proposed after August 20, 2026 will include a necessary and advisable determination (including consideration of conservation and economic impacts consistent with the findings and declaration of purposes and policy of the Endangered Species Act, 16 U.S.C. 1531, based on the best scientific and commercial data available) and will seek public comment on that determination.</P>
                    </SECTION>
                </REGTEXT>
                <SUBPART>
                    <HD SOURCE="HED">Subpart G—Threatened Plants</HD>
                </SUBPART>
                <REGTEXT TITLE="50" PART="17">
                    <AMDPAR>3. Amend § 17.71 by revising paragraph (a) and adding paragraph (d) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 17.71 </SECTNO>
                        <SUBJECT>Prohibitions.</SUBJECT>
                        <P>(a) Except as provided in a permit issued pursuant to § 17.72, the provisions of paragraph (b) of this section and all of the provisions of § 17.61, except § 17.61(c)(2) through (4), apply to threatened species of plants that were added to the List of Endangered and Threatened Plants at § 17.12(h) on or prior to August 20, 2026, unless the Secretary has promulgated species-specific provisions (see paragraph (c) of this section), with the following exception: Seeds of cultivated specimens of species treated as threatened are exempt from all the provisions of § 17.61, provided that a statement that the seeds are of “cultivated origin” accompanies the seeds or their container during the course of any activity otherwise subject to the regulations in this subpart.</P>
                        <STARS/>
                        <P>(d) Each species-specific rule proposed after August 20, 2026 will include a necessary and advisable determination (including consideration of conservation and economic impacts consistent with the findings and declaration of purposes and policy of the Endangered Species Act, 16 U.S.C. 1531, based on the best scientific and commercial data available) and will seek public comment on that determination.</P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Kevin Lilly,</NAME>
                    <TITLE>Principal Deputy for Fish and Wildlife and Parks, Exercising the Delegated Authority of the Assistant Secretary for Fish and Wildlife and Parks, Department of the Interior.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14633 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <PRTPAGE P="45737"/>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 648</CFR>
                <DEPDOC>[Docket No. 260209-0039; RTID 0648-XF892]</DEPDOC>
                <SUBJECT>Fisheries of the Northeastern United States; Summer Flounder Fishery; Quota Transfer From North Carolina 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 State of North Carolina is transferring a portion of its 2026 commercial summer flounder quota to the Commonwealth of Massachusetts. This adjustment to the 2026 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 2026 commercial quotas for North Carolina and Massachusetts.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective July 20, 2026, through December 31, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Matthew Rigdon, Fishery Management Specialist, (978) 281-9336.</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 2026 allocations were published on February 19, 2026 (91 FR 7896).</P>
                <P>
                    The final rule implementing amendment 5 to the FMP, as published in the 
                    <E T="04">Federal Register</E>
                     on December 17, 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>North Carolina is transferring 5,000 pounds (lb; 2,268 kilograms (kg)) of summer flounder 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 2026 are: North Carolina, 2,902,006 lb (1,316,328 kg); and Massachusetts, 1,046,297 lb (474,592 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: July 16, 2026.</DATED>
                    <NAME>Shannon Bettridge,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14697 Filed 7-20-26; 8:45 am]</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 679</CFR>
                <DEPDOC>[Docket No. 260305-0066; RTID 0648-XF422]</DEPDOC>
                <SUBJECT>Fisheries of the Exclusive Economic Zone off Alaska; Pacific Cod by Catcher/Processors Using Trawl Gear in the Bering Sea and Aleutian Islands Management Area</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 is prohibiting directed fishing for Pacific cod by American Fisheries Act (AFA) trawl catcher/processors in the Bering Sea and Aleutian Islands management area (BSAI). This action is necessary to prevent exceeding the annual 2026 Pacific cod total allowable catch (TAC) allocated to AFA trawl catcher/processors in the BSAI.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective 1200 hours, Alaska local time (A.l.t.), July 20, 2026, through 1200 hours, A.l.t., December 31, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Andrew Olson, 907-586-7228.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>NMFS manages the groundfish fishery in the BSAI exclusive economic zone according to the Fishery Management Plan for Groundfish of the BSAI (FMP) prepared and recommended by the North Pacific Fishery Management Council under authority of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679.</P>
                <P>The annual apportionment of the 2026 Pacific cod TAC allocated to AFA trawl catcher/processors in the BSAI is 2,712 metric tons (mt) as established by the final 2026 and 2027 harvest specifications for groundfish in the BSAI (91 FR 11750, March 10, 2026).</P>
                <P>In accordance with § 679.20(d)(1)(i) and § 679.20(d)(1)(ii)(B), the Regional Administrator, Alaska Region, NMFS (Regional Administrator) has determined that the annual 2026 Pacific cod TAC allocated to AFA trawl catcher/processors in the BSAI is necessary to account for the incidental catch in other anticipated fisheries. Therefore, the Regional Administrator is establishing a directed fishing allowance of 2,112 mt and is setting aside the remaining 600 mt as incidental catch to support other anticipated groundfish fisheries. In accordance with § 679.20(d)(1)(iii), the Regional Administrator finds that this directed fishing allowance has been or will be reached. Consequently, NMFS is prohibiting directed fishing for Pacific cod by AFA trawl catcher/processors in the BSAI to prevent exceeding this sector's allocation of Pacific cod TAC.</P>
                <P>While this closure is effective the maximum retainable amounts at § 679.20(e) and (f) apply at any time during a trip.</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 part 679, which was issued pursuant to section 304(b) of the Magnuson-Stevens Act, and is exempt from review under Executive Order 12866.
                    <PRTPAGE P="45738"/>
                </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 would be impracticable and contrary to the public interest. This requirement is impracticable and contrary to the public interest as it would prevent NMFS from responding to the most recent fisheries data on Pacific cod catch in a timely fashion and would delay the closure of directed fishing for Pacific cod by AFA trawl catcher/processors in the BSAI, which could lead to this sector exceeding its annual 2026 allocation of Pacific cod TAC. NMFS was unable to publish a notice providing time for public comment because the most recent, relevant data on Pacific cod catch only became available as of July 16, 2026.</P>
                <P>There is good cause under 5 U.S.C. 553(d)(3) to establish an effective date less than 30 days after date of publication. This finding is based upon the reasons provided above for waiver of prior notice and opportunity for public comment.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Shannon Bettridge,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14671 Filed 7-17-26; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
    </RULES>
    <VOL>91</VOL>
    <NO>138</NO>
    <DATE>Tuesday, July 21, 2026</DATE>
    <UNITNAME>Proposed Rules</UNITNAME>
    <PRORULES>
        <PRORULE>
            <PREAMB>
                <PRTPAGE P="45739"/>
                <AGENCY TYPE="F">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 71</CFR>
                <DEPDOC>[Docket No. FAA-2026-3598; Airspace Docket No. 26-ASW-5]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Establishment of Class E Airspace; Mountain Home, TX: Withdrawal</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed rule, withdrawal.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This action withdraws the notice of proposed rulemaking (NPRM) published in the 
                        <E T="04">Federal Register</E>
                         on April 7, 2026, proposing to establish Class E airspace at Rancho Paraiso Airport, Mountain Home, TX. The FAA has determined that withdrawal of that NPRM is warranted while it reevaluates newly-received airspace data.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The proposed rule published April 7, 2026 (91 FR 17616) is withdrawn as of July 21, 2026.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Raul Garza Jr., Federal Aviation Administration, Operations Support Group, Central Service Center, 10101 Hillwood Parkway, Fort Worth, TX 76177; telephone (817) 222-5874.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">History</HD>
                <P>
                    An NPRM was published in the 
                    <E T="04">Federal Register</E>
                     on April 7, 2026 (91 FR 17616) under Docket No. FAA-2026-3598, proposing to amend 14 CFR part 71 by establishing Class E airspace extending upward from 700 feet above the surface within a 7.6-mile radius of Rancho Paraiso Airport, Mountain Home, TX. Subsequent to publication, new airspace data was received, changing the airspace requirements. Therefore, the FAA is withdrawing the NPRM and expects to publish a new NPRM after fully evaluating the new data to establish Class E airspace extending upward from 700 feet above the surface at Rancho Paraiso Airport, Mountain Home, TX, to support the new instrument procedures being developed.
                </P>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>49 U.S.C. 106(f), 106(g), 40103, 40113, 40120; E.O. 10854; 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
                </AUTH>
                <SIG>
                    <DATED>Issued in Fort Worth, TX, on July 17, 2026.</DATED>
                    <NAME>Jerry J. Creecy,</NAME>
                    <TITLE>Acting Manager, Operations Support Group, ATO Central Service Center.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14668 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">PENSION BENEFIT GUARANTY CORPORATION</AGENCY>
                <CFR>29 CFR Parts 4071 and 4302</CFR>
                <RIN>RIN 1212-AB50</RIN>
                <SUBJECT>Penalties for Failure To Provide Certain Notices or Other Material Information</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Pension Benefit Guaranty Corporation.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This proposed rule would provide the Pension Benefit Guaranty Corporation's policies for calculating, imposing, and waiving monetary penalties to pension plans for failure to provide certain required notices or other material information timely to PBGC and plan participants.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before September 21, 2026 to be assured of consideration.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Email: reg.comments@pbgc.gov.</E>
                         Include RIN 1212-AB50 in the subject line.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail or Hand Delivery:</E>
                         Legislative and Regulatory Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024-2101.
                    </P>
                    <P>Commenters are strongly encouraged to submit comments electronically. Commenters who submit comments on paper by mail should allow sufficient time for mailed comments to be received before the close of the comment period.</P>
                    <P>
                        All submissions must include the agency's name (Pension Benefit Guaranty Corporation, or PBGC) and the Regulation Identifier Number (RIN) for this rulemaking (RIN 1212-AB50). All comments received will be posted without change to PBGC's website, 
                        <E T="03">www.pbgc.gov,</E>
                         including any personal information provided. Do not submit comments that include any personally identifiable information (such as name, address, or other contact information) or confidential business information that you do not want publicly disclosed. Comments may be submitted anonymously.
                    </P>
                    <P>Commenters are encouraged to provide citations to the published materials referenced, including active hyperlinks. Likewise, commenters who reference materials which have not been published are encouraged to upload relevant data collection instruments, data sets, and detailed findings as a part of their comment. Providing such citations and documentation will assist us in analyzing the comments.</P>
                    <P>
                        Copies of comments may also be obtained by writing to Disclosure Division, (
                        <E T="03">disclosure@pbgc.gov</E>
                        ), Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024-2101, or calling 202-326-4040 during normal business hours. If you are deaf or hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
                    </P>
                    <P>
                        Pursuant to the Administrative Procedure Act at 5 U.S.C. 553(b)(4), a plain language summary of the proposed rule is available at 
                        <E T="03">http://www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Joseph Krettek (
                        <E T="03">krettek.joseph@pbgc.gov,</E>
                         202-229-6772), Assistant General Counsel, Office of the General Counsel, or Andrew Wilson (
                        <E T="03">wilson.andrew1@pbgc.gov,</E>
                         202-860-8354), Attorney, Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024-2101. If you are deaf or hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Executive Summary</HD>
                <HD SOURCE="HD2">A. Purpose and Authority</HD>
                <P>
                    The purpose of this rulemaking is to provide the Pension Benefit Guaranty Corporation's (PBGC's) policies for 
                    <PRTPAGE P="45740"/>
                    assessing and waiving monetary penalties for failure to provide certain notices or other material information as required by statute or regulation. This proposed rule would state the penalty amounts that PBGC generally imposes for failure to furnish information timely and would explain the circumstances under which PBGC may waive penalties.
                </P>
                <P>Legal authority for this action comes from section 4002(b)(3) of the Employee Retirement Income Security Act of 1974 (ERISA), which authorizes PBGC to issue regulations to carry out the purposes of title IV of ERISA; section 4071 of ERISA (Penalty for Failure to Timely Provide Required Information); and section 4302 of ERISA (Penalty for Failure to Provide Notice).</P>
                <HD SOURCE="HD2">B. Major Provisions</HD>
                <P>This proposed rule would:</P>
                <P>• Establish that, for most failures to timely provide required notices or other material information, PBGC assesses penalties that are significantly below the maximum amounts allowed under the statute;</P>
                <P>• Provide that PBGC, in its discretion and based on the facts and circumstances of each case, generally waives penalties for failure to timely provide required information, upon a showing of reasonable cause, error of law, or PBGC delay, or in other circumstances, as the agency deems appropriate;</P>
                <P>• Encourage voluntary self-reporting and self-correction by providing lower penalties for violations reported and corrected early; and</P>
                <P>• State that penalty amounts are intended to reflect the potential for harm to plan participants and to PBGC's insurance program caused by the untimely filing, meaning that higher potential for harm generally results in a higher penalty than lower potential for harm.</P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>PBGC administers two insurance programs for private-sector defined benefit pension plans under title IV of ERISA: a single-employer plan termination insurance program and a multiemployer plan insolvency insurance program. In addition, PBGC administers a special financial assistance (SFA) program for certain eligible financially distressed multiemployer plans.</P>
                <P>
                    Under the single-employer plan termination insurance program, covered plans that are underfunded may terminate either in a distress termination under section 4041(c) of ERISA or in an involuntary termination (one initiated by PBGC) under section 4042 of ERISA. When such a plan terminates, PBGC typically is appointed statutory trustee of the plan, and becomes responsible for paying benefits in accordance with the provisions of title IV.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         PBGC also pays non-guaranteed benefits when there are sufficient plan assets or recoveries.
                    </P>
                </FTNT>
                <P>Under the multiemployer insurance program, PBGC provides financial assistance under section 4261 of ERISA to plans that are insolvent and thus unable to pay benefits at the guaranteed level. This financial assistance is primarily in the form of financial assistance loans, paid to the plans periodically so that they are able to pay plan benefits when due. Under the SFA program, PBGC provides financial assistance under section 4262 of ERISA to certain financially troubled multiemployer plans upon application for assistance. Plans that receive SFA are subject to specified restrictions and conditions.</P>
                <P>
                    For PBGC's effective operation of its insurance programs, covered plans and their sponsors (filers) are required by statute and regulation to provide certain notices or other material information (required information or information requirement) to PBGC and other parties, such as plan participants (recipients). Some required information must be provided annually; 
                    <SU>2</SU>
                    <FTREF/>
                     other required information must be provided upon the occurrence of certain events,
                    <SU>3</SU>
                    <FTREF/>
                     and all required information is prescribed a statutory or regulatory due date by which the filer must furnish the required information. Required information allows PBGC to evaluate plans' premium calculations, evaluate plans' financial health, assess the risk of plan sponsors, preserve the assets of the insurance programs, and perform other tasks to carry out its agency functions.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         “Payment of Premiums,” OMB control no. 1212-0009; “Annual Financial and Actuarial Reporting,” OMB control no. 1212-0049.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         “Reportable Events,” OMB control no. 1212-0013; “Notice of Failure to Make Required Contributions,” OMB control no. 1212-0041; “Notices Following a Substantial Cessation of Operations,” OMB control no. 1212-0073; “Termination of Single-Employer Plans,” OMB control no. 1212-0036.; “Notice of Insolvency,” OMB control no. 1212-0033; “Duties of Plan Sponsor Following Mass Withdrawal,” OMB control no. 1212-0032.
                    </P>
                </FTNT>
                <P>
                    Section 4071 of ERISA authorizes PBGC to assess a civil penalty for failure to provide a notice or other material information as required by subtitles A, B, C, or D of title IV or sections 303(k)(4) or 306(g)(4) of ERISA or their corresponding regulations. PBGC's regulation on Penalties for Failure to Provide Certain Notices or Other Material Information (29 CFR part 4071) specifies the maximum daily amount that may be assessed by PBGC for these violations. Section 4071 of ERISA and part 4071 of PBGC's regulations have limited applicability to multiemployer plans. Except for premium information requirements, most of the information requirements subject to section 4071 pertain to single-employer plans only. PBGC adjusts the maximum penalty amounts allowable under statute annually 
                    <SU>4</SU>
                    <FTREF/>
                     and sets the maximum penalty assessed under part 4071 of PBGC's regulation after January 8, 2025, at $2,739 per day of delinquency.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, and as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, section 701, this amount is generally adjusted annually for inflation.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         This amount may be assessed after January 8, 2025, for any noncompliance with a provision covered under section 4071 of ERISA that occurred after November 2, 2015, the date of enactment of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, regardless of whether of the noncompliance occurred before the effective date of the 2025 adjustment.
                    </P>
                </FTNT>
                <P>Section 4302 of ERISA authorizes PBGC to assess a civil penalty for failure to provide a notice as required by subtitle E of title IV, which provides the notice requirements unique to multiemployer plans. PBGC's regulation on Penalties for Failure to Provide Certain Multiemployer Plan Notices (29 CFR part 4302) specifies the maximum daily penalties that may be assessed by PBGC for multiemployer notice violations. The maximum penalty is adjusted annually and was set at $365 per day of delinquency for penalties assessed after January 8, 2025.</P>
                <P>
                    On March 3, 1992, at 57 FR 7605, PBGC issued its first policy statement on how it would exercise its penalty authority under section 4071 of ERISA. PBGC followed up on July 18, 1995,
                    <SU>6</SU>
                    <FTREF/>
                     with a revised statement of policy (the “1995 Policy”), which is currently in effect.
                    <SU>7</SU>
                    <FTREF/>
                     Under the 1995 Policy, PBGC seeks to promote voluntary compliance, encourage self-corrections, and avoid unduly harsh penalties, particularly on small businesses and plans. Under the 1995 Policy, PBGC considers the facts and circumstances of each case to assure that the penalty fits the violation. Relevant factors include the seriousness of the violation, potential for harm to plan participants and to PBGC's 
                    <PRTPAGE P="45741"/>
                    insurance program, willfulness, and prior violations. In addition, under the 1995 Policy, penalty amounts increase with each day of delinquency and stop accruing once the required information is furnished. Finally, the policy states that penalties are lower for plans with fewer than 100 participants than for larger plans.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         60 FR 36837.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         On January 12, 2001, at 66 FR 2856, PBGC published a proposed rule to revise and codify its policies for penalties assessed under section 4071 of ERISA. Other than a provision concerning administrative review, the portion of the 2001 proposed rule regarding section 4071 penalties was never finalized. 
                        <E T="03">See</E>
                         77 FR 22488 (Apr. 16, 2012).
                    </P>
                </FTNT>
                <P>This proposed rule, when finalized, would supersede the 1995 Policy. PBGC has determined that the 1995 Policy is not adequate for addressing many situations of untimely filings. It lacks sufficient detail for certain situations of untimeliness under part 4071, does not cover untimeliness under part 4302, and does not reflect any changes in law, since 1995, under title IV. While this proposed rule, when finalized, would supersede the 1995 Policy, the changes do not reflect a change in PBGC's position on penalties. The proposed rule is intended to offer greater detail and certainty for the public by including more information about the mitigating and aggravating factors PBGC will consider in assessing or waiving penalties.</P>
                <HD SOURCE="HD1">III. Overview of Proposed Rule</HD>
                <P>Proposed parts 4071 and 4302 mirror each other. Subparts A would contain general provisions, including definitions and the maximum daily amount. Subparts B would contain rules for requesting reconsideration of penalties. Subparts C and D would provide assessment rules and rules for waivers.</P>
                <HD SOURCE="HD1">IV. Assessment Rules</HD>
                <P>Proposed §§ 4071.11 and 4302.11 would provide PBGC's general standards for assessing information penalties. PBGC would use its discretion to assess information penalties as appropriate under the facts and circumstances of each case, treating similar facts and circumstances consistently. When assessing penalties, if PBGC has prior knowledge of a filer's circumstances such that PBGC would waive the penalty upon request, PBGC could decide in its discretion to assess no penalty.</P>
                <HD SOURCE="HD1">V. Penalty Amounts</HD>
                <HD SOURCE="HD2">A. Part 4071</HD>
                <P>
                    In proposed part 4071, PBGC encourages compliance and correction by not assessing penalties that are overly punitive. Under proposed § 4071.11(c), PBGC would assess a general penalty of $25 per day for the first 90 days of delinquency and $50 per day beginning on the 91st day of delinquency and thereafter. The 1995 Policy stated that, in general, PBGC will assess a penalty of $25 per day for the first 90 days of delinquency and $50 per day beginning on the 91st day of delinquency and thereafter. By setting per diem—as opposed to flat rate—penalties, PBGC is encouraging voluntary self-reporting and self-correction. All per diem penalty amounts under part 4071 will be reviewed annually and adjusted for inflation as needed.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, and as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, section 701, these penalties are generally adjusted annually for inflation.
                    </P>
                </FTNT>
                <P>Also in this proposed rule, PBGC recognizes the limitations on the resources of small plans. Under proposed § 4071.11(d), PBGC would proportionately reduce the general penalty amounts of $25 and $50 per day for untimely information concerning plans with fewer than 100 participants. The penalty would be reduced proportionately based on the number of participants by multiplying the general penalty times a fraction where the numerator is equal to the number of plan participants and the denominator is 100, subject to a floor of $10 per day. For example, when assessing a penalty for 12 days of delinquency on a plan with 30 participants, PBGC would assess 30 percent of the general penalty, but not less than a total of $120. Under proposed § 4071.11(e), a plan's participant count is the number of participants for whom flat-rate premiums were payable for the plan year preceding the plan year in which the noncompliance occurred, or, for filings or notices related to a plan's termination, the number of persons entitled to distributions (distributees).</P>
                <P>These general rules would apply, as discussed later, for certain reportable events, premium information requirements, certain standard termination information requirements, and certain annual financial and actuarial information reporting requirements. In addition, they would apply for late filings or notices for distress terminations under part 4041 and other untimely furnishing of required information not otherwise specified.</P>
                <HD SOURCE="HD3">1. Reportable Events</HD>
                <P>
                    Proposed § 4071.12 covers noncompliance with the reporting requirements under PBGC's regulation on Reportable Events and Certain Other Notification Requirements (29 CFR part 4043), applicable to single-employer plans.
                    <SU>9</SU>
                    <FTREF/>
                     Required information under this part can be time sensitive, as it may indicate that a plan sponsor is not able to maintain a plan or that a plan is not financially secure. Failure to provide required information to PBGC by the regulatory deadlines may hinder PBGC's efforts to assist sponsors in maintaining existing plans and to protect participants and the single-employer insurance program. The 1995 Policy allowed PBGC to assess penalties as high as the maximum statutory amount for failure to provide an advance notice of a reportable event under section 4043(b) of ERISA or a notice of a missed contribution under what is now section 303(k)(4) of ERISA (Form 200).
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         29 CFR 4043.4(c), which waives reporting requirements under section 4043 of ERISA for multiemployer plans.
                    </P>
                </FTNT>
                <P>
                    Proposed § 4071.12 divides the information requirements in part 4043 into three categories and provides different penalty amounts for each category based on the time sensitivity of the required reports and on the level of risk of harm to participants and to the PBGC insurance program arising from untimely filings. Category 1 is for specified events, including active participant reduction, distribution to a substantial owner, and extraordinary dividend or stock redemption. For this category, PBGC would apply the general penalty of $25 and $50 per day, reduced proportionately for filings concerning plans with fewer than 100 participants, but not lower than $10 per day. Category 2 is for all reportable events that are not in the first or third categories. For Category 2 events, the penalty would be $100 per day, reduced proportionately for filings concerning plans with fewer than 100 participants, but not lower than $25 per day. Category 3 is for the most time sensitive events, including failure to make contributions over $1 million and advance notice reportable events. For Category 3 events, the penalty would be $1,000 per day. Category 3 penalties are not subject to proportionate reduction, as information requirements for reportable events in the third category are generally not applicable to plans with fewer than 100 participants. The three categories of penalties are listed in the following table.
                    <PRTPAGE P="45742"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,nj,tp0,i1" CDEF="xs50,r75,r75">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Reportable
                            <LI>event</LI>
                            <LI>category</LI>
                        </CHED>
                        <CHED H="1">Reportable event type</CHED>
                        <CHED H="1">Penalty amount</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>
                            • Active participant reduction
                            <LI O="xl">• Distribution to a substantial owner.</LI>
                            <LI O="xl">• Extraordinary dividend or stock redemption.</LI>
                        </ENT>
                        <ENT>
                            • $25 per day for first 90 days, $50 per day thereafter.
                            <LI>• Reduced proportionately for plans with under 100 participants, subject to a floor of $10 per day.</LI>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>
                            • Failure to make required minimum funding payment
                            <LI O="xl">• Inability to pay benefits when due.</LI>
                            <LI O="xl">• Change in controlled group.</LI>
                            <LI O="xl">• Liquidation.</LI>
                        </ENT>
                        <ENT>
                            • $100 per day.
                            <LI>• Reduced proportionately for plans with under 100 participants, subject to a floor of $25 per day.</LI>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>• Transfer of benefit liabilities</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>• Application for minimum funding waiver</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>• Loan default</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>• Insolvency or similar settlement</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>• Other reportable event</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>
                            • Failure to make contributions over $1 million
                            <LI O="xl">• Advance notice reportable events.</LI>
                        </ENT>
                        <ENT>• $1,000 per day (not subject to reduction, as these information requirements are generally not applicable to plans with under 100 participants).</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD3">2. Section 4062(e) Events and Substantial Employer Withdrawals</HD>
                <P>Proposed § 4071.13 covers noncompliance with the reporting requirements of sections 4062(e) and 4063 of ERISA, applicable to single-employer plans. Section 4062(e) requires the submission of notices to PBGC following a substantial cessation of operations. Section 4063 requires notice to PBGC following the withdrawal of a substantial employer from a multiple employer plan. The penalty for noncompliance with these notification requirements is generally $1,000 per day. Like the filings under section 4043, filings required by sections 4062(e) and 4063 of ERISA are highly time sensitive. These filings allow PBGC to assess and enforce an employer's liability to a plan, which is critical to the agency's safeguarding of plans and of the PBGC insurance program. The penalty amount reflects the importance of the required information. Also, the penalty for noncompliance with the information requirements under sections 4062(e) and 4063 of ERISA is not subject to proportionate reduction, as these information requirements are generally not applicable to plans with fewer than 100 participants.</P>
                <HD SOURCE="HD3">3. Premium Information Requirements</HD>
                <P>Proposed § 4071.14 covers noncompliance with the reporting requirements under PBGC's regulation on Payment of Premiums (29 CFR part 4007). For violations of section 4007, PBGC would apply the general penalty of $25 and $50 per day, reduced proportionately for filings concerning plans with fewer than 100 participants, but not lower than $10 per day. However, in general, before issuing an assessment of a penalty for noncompliance with the reporting requirements of part 4007, PBGC sends multiple past due filing notices to the filer, and if the filer in a timely manner after receiving the past due filing notices submits the past due premium filing, PBGC does not assess a penalty under section 4071 for the late premium filing.</P>
                <HD SOURCE="HD3">4. Standard Terminations</HD>
                <P>Proposed § 4071.15(b) covers noncompliance with the standard termination information requirements under subpart B of PBGC's regulation on Termination of Single-Employer Plans (29 CFR part 4041). For a standard termination of a single-employer plan, PBGC requires, among other notices, the filing of a standard termination notice (“Form 500”) and a post-distribution certification (“Form 501”) to PBGC, and the issuance of notices of intent to terminate and notices of plan benefits to affected parties. For an untimely Form 501, notice of intent to terminate, or notice of plan benefits, PBGC would apply the general penalty of $25 and $50 per day. For an untimely Form 500, the proposed penalty is $50 per day for the first 90 days of delinquency and $100 per day beginning on the 91st day of delinquency and thereafter. In addition, all information penalties assessed on plans with under 100 distributees for untimely standard termination filings and notices would be subject to proportional reduction under § 4071.11(d), but not lower than $10 per day.</P>
                <P>
                    PBGC also proposes penalty caps for standard termination filings and notices not provided timely. Generally, penalties are assessed to encourage compliance and discourage noncompliance by filers as a whole and particularly by noncompliant filers against whom penalties have been assessed. However, in the case of a noncompliant standard termination, this purpose of encouraging compliance by the terminating plan is diminished. A standard termination, once completed, ends a plan's relationship with the PBGC insurance program, and there is little opportunity to self-correct failures and no opportunity to take preventative measures to ensure future compliance. To avoid assessing penalties that may become unduly harsh, particularly for small business, PBGC is proposing penalty caps for certain standard termination information. PBGC proposes that the penalty amounts for an untimely post-distribution certification and an untimely notice of plan benefits are limited to $100 times the number of distributees or participants, as applicable. PBGC also proposes that, for a plan with under 100 distributees, the penalty for an untimely standard termination notice is capped at 5 percent of the value of benefits distributed at plan termination (
                    <E T="03">e.g.,</E>
                     a plan with 90 distributees with the value of benefits distributed at plan termination equal to $200,000 would have a penalty cap of $10,000.).
                </P>
                <P>
                    The proposed penalty for an untimely notice of intent to terminate would not be assessed for the period after distribution of assets has begun. Finally, PBGC generally would treat multiple failures to timely furnish either notices of intent to terminate or notices of plan benefits as single incidents. The penalty amounts and caps are listed in the following table.
                    <PRTPAGE P="45743"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,nj,tp0,i1" CDEF="s50,r75,r75">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Standard termination
                            <LI>information requirement</LI>
                        </CHED>
                        <CHED H="1">Penalty amount</CHED>
                        <CHED H="1">Cap</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Standard termination notice</ENT>
                        <ENT>
                            • $50 per day for first 90 days, $100 per day thereafter
                            <LI>• Reduced proportionately for plans with under 100 distributees, subject to a floor of $10 per day</LI>
                        </ENT>
                        <ENT>5 percent of benefits distributed at plan termination for plans with under 100 distributees.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Post distribution certification</ENT>
                        <ENT>
                            • $25 per day for first 90 days, $50 per day thereafter
                            <LI>• Reduced proportionately for plans with under 100 distributees, subject to a floor of $10 per day</LI>
                        </ENT>
                        <ENT>
                            $100 multiplied by the number of distributees or participants, as applicable.
                            <LI>Not assessed for the period after distribution of assets has begun.</LI>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Notice of plan benefits</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Notice of intent to terminate</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD3">5. Annual Financial and Actuarial Information Reporting</HD>
                <P>Proposed § 4071.16 covers noncompliance with information requirements under PBGC's regulation on Annual Financial and Actuarial Information Reporting (29 CFR part 4010). Under this regulation, filers for certain underfunded single-employer plans must report identifying, financial, and actuarial information to PBGC. The penalty for noncompliance with the information requirements under part 4010, except for the information requirements under § 4010.6(a)(2), would be generally $100 per day. For the information requirements under § 4010.6(a)(2), which are applicable where a full filing was required for the preceding year but only a limited filing is required for the current year, PBGC would apply the general penalty of $25 per day for the first 90 days and $50 per day thereafter. The penalties for noncompliance with the information requirements under part 4010 are not subject to proportionate reduction with respect to plans with fewer than 100 participants because filing requirements under part 4010 apply on a controlled group basis, not a plan basis, and therefore, penalties for noncompliance are assessed on a controlled group basis. PBGC determined that there is no need to include a proportionate reduction in situations where the aggregate number of participants in the controlled group is less than 100 because 4010 reporting requirements are generally waived if the number of participants is less than 500.</P>
                <HD SOURCE="HD2">B. Part 4302</HD>
                <P>
                    PBGC historically has not assessed penalties for untimely multiemployer plan notices covered under part 4302, such as filings under part 4245 (Duties of Plan Sponsor of an Insolvent Plan) and filings under part 4281 (Duties of Plan Sponsor Following Mass Withdrawal).
                    <SU>10</SU>
                    <FTREF/>
                     Instead, in the event of an untimely notice, PBGC informs the filer of the requirement, and the filer generally complies. Generally, PBGC will continue this practice and is codifying it for filings required under the multiemployer plan insolvency insurance program. If a filer remains noncompliant after being informed of the lateness, PBGC assesses a penalty under part 4302.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Section 4302 of ERISA also applies to an annual statement of compliance required by 29 CFR 4262.16(i) and other multiemployer plan notices and filings.
                    </P>
                </FTNT>
                <P>
                    Under proposed § 4302.11(c), PBGC may assess the maximum statutory amount, which for 2025 is $365 per day of delinquency. PBGC believes that this amount is not overly punitive because it is well below the maximum amount allowed under part 4071 (which may be assessed on multiemployer plans for untimely premium and termination filings), and because PBGC generally would not assess any penalty unless the filer failed to comply with a past due notice of the late filing. This system of assessing the maximum penalty after informing the filer of the lateness will encourage compliance, voluntary self-reporting, and self-correction. There are no reductions applicable to small plans, as very few multiemployer plans have under 100 participants.
                    <SU>11</SU>
                    <FTREF/>
                     However, PBGC may exercise its discretion to waive the penalty for a small plan if the circumstances warrant. All per diem penalty amounts under part 4302 will be reviewed annually and adjusted for inflation as needed.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Based on data from premium filings, PBGC estimates that only 46 of the approximately 1,319 multiemployer plans are small plans with under 100 participants. These figures represent participant count information reported in the most recent premium filing submitted as of November 30, 2024 (
                        <E T="03">i.e.,</E>
                         the 2024 filing if already submitted and the 2023 filing, otherwise).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, and as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, section 701, this penalty is generally adjusted annually for inflation.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">VI. Requests for Reconsideration</HD>
                <P>
                    Under §§ 4071.5 and 4302.5, a filer aggrieved by PBGC's initial determination with respect to information penalties would have the opportunity to request reconsideration in accordance with PBGC's regulation on Rules for Administrative Review of Agency Decisions (29 CFR part 4003). A filer can submit the reconsideration request in writing within 30 days of the date of the initial determination of which reconsideration is sought, explain why the determination was wrong, and convey the sought result.
                    <SU>13</SU>
                    <FTREF/>
                     The same department of PBGC that issued the information penalty would receive and consider the request, and a PBGC official with a level of authority higher than that of the person who issued the initial determination would render the final decision on the request for reconsideration.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         For more information about reconsiderations, see 29 CFR part 4003, subpart C. Information filed with a request for consideration is governed by OMB control no. 1212-0063.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">VII. Waivers</HD>
                <P>
                    Under §§ 4071.21 and 4302.21 of the proposed rule, PBGC, in its discretion, may waive in whole or in part penalties assessed on filers under section 4071 or 4302 of ERISA. Whether PBGC grants a waiver would depend on the facts and circumstance of each case, and PBGC would be consistent in its treatment of similar facts and circumstances. In determining whether to grant a waiver, PBGC would determine whether the filer's situation is one of reasonable cause (discussed in §§ 4071.22 and 4302.22), error of law (discussed in §§ 4071.23 and 4302.23), or PBGC delay (discussed in §§ 4071.24 and 4302.24).
                    <SU>14</SU>
                    <FTREF/>
                     In addition, PBGC would examine the presence of mitigating factors listed in §§ 4071.25 and 4302.25 or aggravating factors listed in §§ 4071.27 and 4302.27. Finally, under §§ 4071.26 and 4302.26, PBGC would have the authority to grant a waiver in other circumstances if the 
                    <PRTPAGE P="45744"/>
                    agency deemed it appropriate to do so,
                    <SU>15</SU>
                    <FTREF/>
                     while remaining consistent in its treatment of similar facts and circumstances. A filer would be able to submit information relevant to a waiver both before and after the assessment of an information penalty.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         These situations are intended to mirror the situations of reasonable cause, legal errors, and pendency of PBGC procedures found in 29 CFR part 4007, App., question 21(b)(2), (3), and (4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         This provision is intended to mirror PBGC's authority to waive penalties in 29 CFR part 4007, App., question 21(b)(5).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Reasonable Cause</HD>
                <P>Proposed §§ 4071.22 and 4302.22 state that PBGC generally will waive a penalty upon a showing of reasonable cause. A showing of reasonable cause means that the filer has demonstrated that the untimeliness was due to circumstances beyond the control of the filer, and that the filer could not have complied with the deadline by the exercise of ordinary business care and prudence. The specific circumstances that constitute reasonable cause will vary. PBGC considers the size of a plan or employer and the seriousness of the violation in determining reasonable cause. A lack of knowledge of a deadline or other legal obligation on the part of a filer does not constitute reasonable cause.</P>
                <P>PBGC is aware that many filers rely on the assistance of outside advisors, such as actuaries, attorneys, and third-party administrators, to learn of and fulfill their filing and notice requirements. For purposes of determining reasonable cause under the proposed regulation, PBGC imputes the actions of outside advisors to the filer. Thus, in determining whether a filer should receive a waiver of penalty, PBGC considers whether a filer's outside advisor exercised ordinary business care and prudence in the actions or inactions that led to the untimeliness. A filer's exercise of ordinary business care and prudence in selecting and interacting with the outside advisor is not a relevant factor in determining reasonable cause.</P>
                <HD SOURCE="HD2">B. Error of Law</HD>
                <P>Proposed §§ 4071.23 and 4302.23 state that PBGC generally waives a penalty under sections 4071 and 4302 of ERISA if the filer demonstrates that the untimeliness was due to an “erroneous interpretation” or a “change in the law.” PBGC proposes errors of law as grounds for a waiver because it does not wish to penalize filers that take reasonable and defensible (even if ultimately incorrect) legal positions.</P>
                <HD SOURCE="HD2">C. PBGC Delay</HD>
                <P>Under proposed §§ 4071.24 and 4302.24, PBGC generally will waive the portion of a penalty that accrues because of a delay in PBGC's response to a non-frivolous argument against a PBGC notice requirement. Thus, if a filer submits a non-frivolous argument regarding a deadline with which it failed to comply and PBGC is delayed in its response to this argument, then PBGC likely will waive any portion of the penalty that accrued during the time of the delay.</P>
                <HD SOURCE="HD2">D. Mitigating Factors</HD>
                <P>Under proposed §§ 4071.25 and 4302.25, PBGC is more likely to waive a penalty issued under sections 4071 and 4302 of ERISA if the filer demonstrates one or both of the following mitigating factors: self-correction and preventive measures. Self-correction means that a filer promptly corrected the noncompliance upon discovering it and notified PBGC of the noncompliance before PBGC notified the filer of the possible noncompliance. PBGC will also consider preventive measures, meaning that it will look at whether the filer cooperates with PBGC in taking steps to ensure further compliance. PBGC proposes to provide that it may reduce or waive penalties for filers that self-correct or take preventative measures because those actions ultimately serve to protect plans, participants, and the PBGC insurance program. PBGC specifically requests comments on mitigating factors that PBGC should consider when reviewing violations and assessing or waiving penalties.</P>
                <HD SOURCE="HD2">E. Aggravating Factors</HD>
                <P>Under proposed §§ 4071.27 and 4302.27, PBGC is less likely to waive a penalty and is more likely to increase a penalty possibly up to the maximum amount when one or more aggravating factors is present: potential for harm, repeated offenses, and willfulness. Potential for harm means that the specific instance of noncompliance could cause significantly greater harm than is typical, whether or not harm actually occurs. PBGC may also consider whether a filer has a pattern of noncompliance or if the instance of noncompliance is conscious and purposeful rather than inadvertent or accidental. Each of these factors is ultimately detrimental to PBGC's ability to efficiently run the insurance program. PBGC specifically requests comments on aggravating factors that PBGC should consider when reviewing violations and assessing or waiving penalties.</P>
                <HD SOURCE="HD1">VIII. Compliance With Rulemaking Guidelines</HD>
                <HD SOURCE="HD2">A. Executive Orders 12866, 13563, and 14192</HD>
                <P>The Office of Management and Budget (OMB) has determined that this proposed rule is a “significant regulatory action” under section 3(f) of Executive Order 12866. Accordingly, OMB has reviewed the proposed rule under Executive Order 12866.</P>
                <P>Executive Order 12866 directs 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).</P>
                <P>PBGC has examined the economic and policy implications of this proposed rule and has concluded that there will be no significant economic impact as a result of the proposed amendments to PBGC's regulations. Most of the proposed amendments merely codify or explain existing PBGC policies and practices. For instance, PBGC is codifying its practice of sending out past due notices before assessing penalties under part 4071 for untimely premium filings and under part 4302 for untimely multiemployer notices. In addition, PBGC is clearly outlining the grounds for waivers and reductions of penalties for transparency. For the specific instances of lateness where PBGC is increasing penalties, those assessments are not expected to have a significant economic impact.</P>
                <P>
                    PBGC considered an alternative approach for establishing the per diem penalty amounts under parts 4071 and 4302. Instead of maintaining the figures from the 1995 Policy, PBGC evaluated whether to use the Bureau of Labor Statistics inflation calculator to adjust those amounts to their present-day value. Because the objective of this proposed rule is to enhance transparency rather than increase potential penalty burdens, PBGC is proposing to maintain the 1995 Policy amounts. As stated earlier in this rule, if this rule is finalized, PBGC will adjust the per diem amounts under parts 4071 and 4302 annually for inflation consistent with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, and as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. PBGC invites comment on a regulatory alternative where PBGC would adjust the 1995 Policy amounts to account for 
                    <PRTPAGE P="45745"/>
                    inflation from 1995 up to the current day as the starting point for parts 4071 and 4302.
                </P>
                <P>PBGC examined data from 2019 through 2024 on the number of filing violations, number of waivers, the amount of penalties collected, and the average penalty amount. The table below shows this data for the following filings: standard termination post-distribution certification, premiums, annual financial and actuarial information under 29 CFR part 4010, and reportable events. Note that the data below includes the portion attributable to small entities.</P>
                <GPOTABLE COLS="5" OPTS="L2,nj,tp0,i1" CDEF="s50,12,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Filing type</CHED>
                        <CHED H="1">
                            Total number of
                            <LI>violations under</LI>
                            <LI>29 CFR part</LI>
                            <LI>4071</LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>waivers issued</LI>
                        </CHED>
                        <CHED H="1">
                            Total amount
                            <LI>collected</LI>
                        </CHED>
                        <CHED H="1">
                            Average 
                            <LI>penalty amount</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Standard Termination Post-Distribution Certification</ENT>
                        <ENT>1,683</ENT>
                        <ENT>1,656</ENT>
                        <ENT>$60,187.50</ENT>
                        <ENT>$2,243</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Premiums</ENT>
                        <ENT>2,259</ENT>
                        <ENT>1,858</ENT>
                        <ENT>243,880.99</ENT>
                        <ENT>499.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4010 Information</ENT>
                        <ENT>448</ENT>
                        <ENT>* 28</ENT>
                        <ENT>0</ENT>
                        <ENT>0</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Reportable Events</ENT>
                        <ENT>947</ENT>
                        <ENT>0</ENT>
                        <ENT>0</ENT>
                        <ENT>0</ENT>
                    </ROW>
                    <TNOTE>* There were an additional 197 waivers issued under the one-time 4010 filing waiver in PBGC's Technical Update 23-1 (August 7, 2023).</TNOTE>
                </GPOTABLE>
                <P>As noted in the table, there was no penalty amount collected for both 4010 information violations and reportable events violations. In addition, there were no waivers issued for reportable events violations because there was an internal non-enforcement policy. During this time frame (2019-2024), PBGC did not collect data on violations and penalties for standard termination notices, notices of plan benefits, notices of intent to termination, or any multiemployer plan notices because it was not enforcing penalties for filing violations.</P>
                <P>PBGC has maintained an informal, internal non-enforcement policy for 4010 information and reportable events while this proposed rule was being developed and chose to refrain from imposing penalties for these filings until formal regulatory guidance could be implemented. PBGC is not proposing to codify this temporary non-enforcement approach. Instead, this proposed regulation is intended to provide the public greater clarity on PBGC's penalty practices and to support a consistent and transparent framework for assessing and waiving penalties.</P>
                <P>It is uncertain how the implementation of this regulation, if finalized, will modify the volume of violations and waivers and the amount of penalties collected by PBGC. The goal is that the transparency created by this regulation would incentivize compliance, thereby reducing the number of violations and amount of penalties collected.</P>
                <P>Section 6 of Executive Order 13563 requires agencies to rethink existing regulations by periodically reviewing their regulatory program for rules that “may be outmoded, ineffective, insufficient, or excessively burdensome.” These rules should be modified, streamlined, expanded, or repealed as appropriate. PBGC has identified the proposed amendments to the regulations on penalties for failure to provide certain notices or other material information as consistent with the principles for review under Executive Order 13563. PBGC believes that, by codifying PBGC's policies on assessing and waiving penalties, this proposed rule will update and provide expanded and clearer guidance to the public.</P>
                <P>
                    Executive Order 14192 requires agencies to identify at least ten existing regulations to be repealed when the agency issues a new regulation and that new incremental costs associated with new regulations shall, to the extent permitted by law, be offset by the elimination of existing costs associated with prior regulations. As OMB explains in its memorandum, “Guidance Implementing Section 3 of Executive Order 14192, Titled `Unleashing Prosperity Through Deregulation,' ” an “Executive Order 14192 regulatory action” is defined as a significant regulatory action (as defined in section 3(f) of Executive Order 12866) that would impose total costs greater than zero.
                    <SU>16</SU>
                    <FTREF/>
                     This rule, if finalized, qualifies as an “Executive Order 14192 deregulatory action” (as defined in M-25-20) because it includes simplifications and efficiencies that, even if not quantifiable, are consistent with Executive Order 14192's purpose to reduce the regulatory burden on the public. This regulatory action would not impose total costs greater than zero. Instead, this proposed rulemaking promotes transparency, which is intended to reduce any regulatory burden on the public.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         Office of Management and Budget, Memorandum M-25-20: Guidance Implementing Section 3 of Executive Order 14192, Titled “Unleashing Prosperity Through Deregulation” (Mar. 26, 2025).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Regulatory Flexibility Act</HD>
                <P>
                    The Regulatory Flexibility Act 
                    <SU>17</SU>
                    <FTREF/>
                     (RFA) imposes certain requirements respecting rules that are subject to the notice-and-comment requirements of section 553(b) of the Administrative Procedure Act, or any other law,
                    <SU>18</SU>
                    <FTREF/>
                     and that are likely to have a significant economic impact on a substantial number of small entities. Under 5 U.S.C. 603, an agency must prepare an initial regulatory flexibility analysis at the time of the publication of the proposed rule describing the impact of the rule on small entities and seek public comment on such impact, unless an agency certifies that the proposed rule will not, if promulgated, have a significant economic impact on a substantial number of small entities. Small entities include small businesses, organizations, and governmental jurisdictions.
                    <SU>19</SU>
                    <FTREF/>
                     For purposes of the RFA requirements with respect to this proposed rule, PBGC considers a small entity to be a plan with fewer than 100 participants.
                    <SU>20</SU>
                    <FTREF/>
                     This is substantially the same criterion PBGC uses in other regulations 
                    <SU>21</SU>
                    <FTREF/>
                     and is consistent with certain requirements in title I of ERISA 
                    <SU>22</SU>
                    <FTREF/>
                     and the Internal 
                    <PRTPAGE P="45746"/>
                    Revenue Code 
                    <SU>23</SU>
                    <FTREF/>
                     (“the Code”), as well as the definition of a small entity that PBGC and the Department of Labor (“DOL”) have used for purposes of the RFA.
                    <SU>24</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         5 U.S.C. 601 
                        <E T="03">et seq.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         The applicable definition of “rule” is found in section 601 of the RFA. 
                        <E T="03">See</E>
                         5 U.S.C. 601(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The applicable definitions of “small business,” “small organization,” and “small governmental jurisdiction” are found in section 601 of the RFA. 
                        <E T="03">See</E>
                         5 U.S.C. 601.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         PBGC consulted with the Small Business Administration's Office of Advocacy before making this determination. Memorandum received from the U.S. Small Business Administration, Office of Advocacy on March 9, 2021.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See, e.g.,</E>
                         special rules for small plans under part 4007 (Payment of Premiums).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See, e.g.,</E>
                         section 104(a)(2) of ERISA, which permits the Secretary of Labor to prescribe simplified annual reports for pension plans that cover fewer than 100 participants.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See, e.g.,</E>
                         section 430(g)(2)(B) of the Code, which permits plans with 100 or fewer participants to use valuation dates other than the first day of the plan year.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See, e.g.,</E>
                         PBGC's proposed rule on Reportable Events and Certain Other Notification Requirements, 78 FR 20039, 20057 (April 3, 2013) and DOL's final rule on Prohibited Transaction Exemption Procedures, 76 FR 66637, 66644 (Oct. 27, 2011).
                    </P>
                </FTNT>
                <P>Most small plans are maintained by small employers. Some large employers may maintain small plans, but it is highly unlikely that a small employer would have reporting requirements for a plan with over 100 participants. PBGC believes that assessing the impact of the final rule on small plans is an appropriate substitute for evaluating the effect on small entities. The definition of small entity considered appropriate for this purpose differs, however, from a definition of small business based on size standards promulgated by the Small Business Administration (13 CFR 121.201) pursuant to the Small Business Act. PBGC therefore requests comments on the appropriateness of the size standard used in evaluating the impact on small entities of this proposed rule.</P>
                <P>
                    As of November 30, 2024, there are 18,821 
                    <SU>25</SU>
                    <FTREF/>
                     small single-employer plans covered under title IV of ERISA. These allowances for assessment of increased penalties would affect only a fraction of the 18,821 small single-employer plans. Penalties will be assessed only on entities that have a filing requirement and are late with that required filing. Of these 18,821 small single-employer plans, only a fraction 
                    <SU>26</SU>
                    <FTREF/>
                     have any non-premium filing requirements each year. PBGC expects that most plans will comply with their filing requirements and thus not face any penalties. While it is possible that individual small plans may be impacted by the increase in penalties for late filings under part 4010, part 4041, or part 4043, and have to pay more in penalties than they would before the rule, the overall effect on small plans will not be significant. PBGC does not expect a substantial number of small entities to face significant economic impact as a result of codifying the penalty policy.
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         These figures represent participant count information reported in the most recent premium filing submitted as of November 30, 2024.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         PBGC estimates approximately 2,500 total annual filings under parts 4010, 4041 and 4043 as provided to OMB for purposes of the Paperwork Reduction Act.
                    </P>
                </FTNT>
                <P>
                    PBGC collected data on the number of violations and waivers for small entities and amount of penalties collected from 2019 through 2024. It is important to note that controlled groups that have fewer than 500 participants in all plans are exempt from the Annual Financial and Actuarial Information Reporting 
                    <SU>27</SU>
                    <FTREF/>
                     under 29 CFR part 4010.
                    <SU>28</SU>
                    <FTREF/>
                     As a result of this exemption, small entities under the proposed definition do not make filings under 29 CFR part 4010.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         OMB control no. 1212-0049.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         29 CFR 4010.11(b).
                    </P>
                </FTNT>
                <GPOTABLE COLS="5" OPTS="L2,nj,tp0,i1" CDEF="s50,12,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Filing type</CHED>
                        <CHED H="1">
                            Number of
                            <LI>violations by</LI>
                            <LI>small entities</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>waivers for</LI>
                            <LI>small entities</LI>
                        </CHED>
                        <CHED H="1">
                            Amount
                            <LI>collected from</LI>
                            <LI>small entities</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>penalty</LI>
                            <LI>amount per</LI>
                            <LI>small entity</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Standard Termination, Post-Distribution Certification</ENT>
                        <ENT>1,485</ENT>
                        <ENT>1,460</ENT>
                        <ENT>$49,787.50</ENT>
                        <ENT>$2,007.50</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Premiums</ENT>
                        <ENT>2,145</ENT>
                        <ENT>1,765</ENT>
                        <ENT>173,610.65</ENT>
                        <ENT>278.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Reportable Events</ENT>
                        <ENT>521</ENT>
                        <ENT>0</ENT>
                        <ENT>0</ENT>
                        <ENT>0</ENT>
                    </ROW>
                </GPOTABLE>
                <P>For post-distribution certification filing violations by small entities, 98 percent received waivers, and for premium filing violations, 82 percent received waivers. The average penalty collected per small entity is lower than the maximum daily penalty permitted under statute. It is important to note that, as stated above, there were no waivers issued or penalties collected for reportable event filing violations due to non-enforcement. It is uncertain how many filers will receive waivers and how much will be collected in penalties after the publication of a final rule.</P>
                <P>The intent of this proposed rule is not to collect additional monies but rather to increase transparency and increase compliance with filing requirements. PBGC does not anticipate any additional penalty collections for most of the instances of lateness addressed in this proposed rule. For instance, as stated above, this proposed rule codifies PBGC's existing practices of informing filers of untimely late premium filings and untimely multiemployer notices before assessment of penalties, and the total penalties collected from small or large plans for failure to comply with those requirements are not expected to increase.</P>
                <P>In the instances where PBGC may allow penalties above the stated amounts in the regulation, PBGC has drafted the rule to minimize the impact on small plans. As described earlier in the preamble, PBGC would reduce the general penalty amounts of $25 and $50 per day for untimely information concerning plans with fewer than 100 participants. The penalty would be lowered proportionately based on the number of participants by multiplying the general penalty times a fraction where the numerator is equal to the number of plan participants and the denominator is 100, subject to a floor of $10 per day. Penalties for untimely standard termination notices would be capped at 5 percent of benefits distributed at plan termination for plans with under 100 distributees, and penalties for untimely post distribution certification would be capped at $100 per distributee. Finally, PBGC would take plan size into account when determining whether penalties should be waived. PBGC requests comments about the possible impact of this penalty regulation on small entities, using the proposed definition discussed in this section.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects</HD>
                    <CFR>29 CFR Part 4071</CFR>
                    <P>Penalties.</P>
                    <CFR>29 CFR Part 4302</CFR>
                    <P>Penalties. </P>
                </LSTSUB>
                  
                <P>In consideration of the foregoing, PBGC proposes to amend 29 CFR parts 4071 and 4302 as follows.</P>
                <AMDPAR>1. Revise part 4071 to read as follows:</AMDPAR>
                <PART>
                    <HD SOURCE="HED">PART 4071—PENALTIES FOR FAILURE TO PROVIDE CERTAIN NOTICES OR OTHER MATERIAL INFORMATION</HD>
                    <CONTENTS>
                        <SUBPART>
                            <HD SOURCE="HED">Subpart A—Purpose and Definitions</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4071.1 </SECTNO>
                            <SUBJECT>Purpose and scope.</SUBJECT>
                            <SECTNO>4071.2 </SECTNO>
                            <SUBJECT>Definitions</SUBJECT>
                            <SECTNO>4071.3 </SECTNO>
                            <SUBJECT>Maximum daily amount.</SUBJECT>
                        </SUBPART>
                        <SUBPART>
                            <HD SOURCE="HED">Subpart B—Opportunity for Reconsideration</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4071.5 </SECTNO>
                            <SUBJECT>Reconsideration</SUBJECT>
                        </SUBPART>
                        <SUBPART>
                            <PRTPAGE P="45747"/>
                            <HD SOURCE="HED">Subpart C—Assessment Rules</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4071.11 </SECTNO>
                            <SUBJECT>General assessment.</SUBJECT>
                            <SECTNO>4071.12 </SECTNO>
                            <SUBJECT>Reportable events.</SUBJECT>
                            <SECTNO>4071.13 </SECTNO>
                            <SUBJECT>Section 4062(e) events and substantial employer withdrawals.</SUBJECT>
                            <SECTNO>4071.14 </SECTNO>
                            <SUBJECT>Premium information requirements.</SUBJECT>
                            <SECTNO>4071.15 </SECTNO>
                            <SUBJECT>Plan termination information requirements.</SUBJECT>
                            <SECTNO>4071.16 </SECTNO>
                            <SUBJECT>Annual financial and actuarial information reporting.</SUBJECT>
                        </SUBPART>
                        <SUBPART>
                            <HD SOURCE="HED">Subpart D—Waivers</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4071.21 </SECTNO>
                            <SUBJECT>Waivers.</SUBJECT>
                            <SECTNO>4071.22 </SECTNO>
                            <SUBJECT>Reasonable cause.</SUBJECT>
                            <SECTNO>4071.23 </SECTNO>
                            <SUBJECT>Error of law.</SUBJECT>
                            <SECTNO>4071.24 </SECTNO>
                            <SUBJECT>PBGC delay.</SUBJECT>
                            <SECTNO>4071.25 </SECTNO>
                            <SUBJECT>Mitigating factors.</SUBJECT>
                            <SECTNO>4071.26 </SECTNO>
                            <SUBJECT>Other circumstances.</SUBJECT>
                            <SECTNO>4071.27 </SECTNO>
                            <SUBJECT>Aggravating factors.</SUBJECT>
                        </SUBPART>
                    </CONTENTS>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 114-74, 129 Stat. 599-601; 29 U.S.C. 1302(b)(3), 1371.</P>
                    </AUTH>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart A—Purpose and Definitions</HD>
                        <SECTION>
                            <SECTNO>§ 4071.1 </SECTNO>
                            <SUBJECT>Purpose and scope.</SUBJECT>
                            <P>This part specifies the penalty amounts that may be assessed by PBGC under section 4071 of ERISA for failure to provide certain notices or other material information.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.2 </SECTNO>
                            <SUBJECT>Definitions.</SUBJECT>
                            <P>The following terms are defined in § 4001.2 of this chapter: ERISA and PBGC. In addition, for purposes of this part:</P>
                            <P>
                                <E T="03">Filer</E>
                                 means a person required to timely provide section 4071 information.
                            </P>
                            <P>
                                <E T="03">Information penalty</E>
                                 means a penalty under section 4071 of ERISA for failure to timely provide section 4071 information.
                            </P>
                            <P>
                                <E T="03">Noncompliance</E>
                                 means failure to timely provide section 4071 information.
                            </P>
                            <P>
                                <E T="03">Section 4071 information</E>
                                 means any notice or other material information to which section 4071 of ERISA applies.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.3 </SECTNO>
                            <SUBJECT>Maximum daily amount.</SUBJECT>
                            <P>The maximum daily amount of the penalty under section 4071 of ERISA is $2,739. Such amount has been adjusted to account for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, and as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.</P>
                        </SECTION>
                    </SUBPART>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart B—Opportunity for Reconsideration</HD>
                        <SECTION>
                            <SECTNO>§ 4071.5 </SECTNO>
                            <SUBJECT>Reconsideration.</SUBJECT>
                            <P>A person aggrieved by an initial determination with respect to penalties under section 4071 of ERISA may request reconsideration in accordance with the rules prescribed in subpart C of part 4003 of this chapter.</P>
                        </SECTION>
                    </SUBPART>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart C—Assessment Rules</HD>
                        <SECTION>
                            <SECTNO>§ 4071.11 </SECTNO>
                            <SUBJECT>General assessment.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Assessment is discretionary.</E>
                                 PBGC generally assesses information penalties under this subpart in such amounts as PBGC, in its discretion, determines are appropriate under the facts and circumstances of each case.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Assessment principles.</E>
                                 In exercising its discretion to assess information penalties, PBGC considers the penalty waiver principles in subpart D of this part and is consistent in its treatment of similar facts and circumstances.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Daily amount.</E>
                                 If no other section in this subpart applies, information penalties are generally $25 per day for the first 90 days late and $50 per day thereafter.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Penalty reduction.</E>
                                 Where a penalty is subject to reduction for plans with under 100 participants, the penalty is generally reduced to an amount equal to the greater of—
                            </P>
                            <P>(1) $10 per day, or</P>
                            <P>(2) The unreduced penalty amount multiplied by a fraction—</P>
                            <P>(i) The numerator of which is the number of plan participants, and</P>
                            <P>(ii) The denominator of which is 100.</P>
                            <P>
                                (e) 
                                <E T="03">Counting participants.</E>
                                 Where the amount of an information penalty depends on the number of plan participants, the relevant number of participants is generally—
                            </P>
                            <P>(i) For a filing or notice related to a plan termination, the number of persons entitled to distributions under the plan, and</P>
                            <P>(ii) In any other case, the number of participants for whom flat-rate premiums were payable for the plan year preceding the plan year in which the noncompliance occurred.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.12 </SECTNO>
                            <SUBJECT>Reportable events.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 In assessing penalties for noncompliance with reporting requirements under part 4043 of this chapter, PBGC is guided by the standards in this section.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Category 1 events.</E>
                                 For Category 1 events, PBGC is guided by the standards in § 4071.11(c), and the penalty amount is subject to reduction as provided in § 4071.11(d).
                            </P>
                            <P>
                                (c) 
                                <E T="03">Category 2 events.</E>
                            </P>
                            <P>(1) For Category 2 events, the penalty generally assessed is $100 per day.</P>
                            <P>(2) For plans with under 100 participants, the penalty amount is subject to reduction as provided in § 4071.11(d), except that it may not be reduced below $25 per day.</P>
                            <P>
                                (d) 
                                <E T="03">Category 3 events.</E>
                                 For Category 3 events, the penalty generally assessed is $1,000 per day, and the penalty amount is not subject to reduction under § 4071.11(d).
                            </P>
                            <P>
                                (e) 
                                <E T="03">Event categories.</E>
                                 For purposes of this section—
                            </P>
                            <P>(1) Category 1 events are those described in §§ 4043.23 (active participant reduction), 4043.27 (distribution to a substantial owner), and 4043.31 (extraordinary dividend or stock redemption) of this chapter.</P>
                            <P>(2) Category 2 events are those described in §§ 4043.25 (failure to make required minimum funding payment), 4043.26 (inability to pay benefits when due), 4043.29 (change in controlled group), 4043.30 (liquidation), 4043.32 (transfer of benefit liabilities), 4043.33 (application for minimum funding waiver), 4043.34 (loan default), and 4043.35 (insolvency or similar settlement) of this chapter and other reportable events that are not Category 1 events or Category 3 events.</P>
                            <P>(3) Category 3 events are those described in §§ 4043.62 (advance notice of change in contributing sponsor or controlled group), 4043.63 (advance notice of liquidation), 4043.64 (advance notice of extraordinary dividend or stock redemption), 4043.65 (advance notice of transfer of benefit liabilities), 4043.66 (advance notice of application for minimum funding waiver), 4043.67 (advance notice of loan default), 4043.68 (advance notice of insolvency or similar settlement), and 4043.81 (PBGC Form 200, notice of failure to make required contributions over $1 million; supplementary information).</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.13 </SECTNO>
                            <SUBJECT>Section 4062(e) events and substantial employer withdrawals.</SUBJECT>
                            <P>(a) In assessing penalties for noncompliance with reporting requirements under sections 4062(e) and 4063 of ERISA, PBGC is guided by the standards in this section.</P>
                            <P>(b) For events under section 4062(e) of ERISA and substantial employer withdrawals under section 4063 of ERISA, the penalty generally assessed is $1,000 per day, and the penalty amount is not subject to reduction under § 4071.11(d).</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.14 </SECTNO>
                            <SUBJECT>Premium information requirements.</SUBJECT>
                            <P>In assessing information penalties for noncompliance with premium-related information submission requirements under part 4007 of this chapter, PBGC is guided by the standards in § 4071.11(c), and the penalty amount is subject to reduction as provided in § 4071.11(d).</P>
                        </SECTION>
                        <SECTION>
                            <PRTPAGE P="45748"/>
                            <SECTNO>§ 4071.15 </SECTNO>
                            <SUBJECT>Plan termination information requirements.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 (1) In assessing penalties for noncompliance with information requirements under part 4041 of this chapter, PBGC is guided by the standards in this section.
                            </P>
                            <P>(2) PBGC generally does not assess an information penalty for noncompliance with filing and issuance requirements in connection with a plan termination under section 4041 of ERISA if PBGC nullifies the termination.</P>
                            <P>
                                (b) 
                                <E T="03">Standard terminations.</E>
                                 For information requirements under subpart B of part 4041 of this chapter, PBGC is guided by the standards in § 4071.11(c) and the penalty amount is subject to reduction as provided in § 4071.11(d), except with respect to penalty amounts as follows—
                            </P>
                            <P>(1) If a post-distribution certification has not been filed in accordance with § 4041.29 of this chapter, the information penalty generally assessed is not more than $100 times the number of distributees.</P>
                            <P>(2) If a standard termination notice has not been filed before the distribution of benefit liabilities in accordance with § 4041.25 of this chapter, the information penalty generally assessed is $50 per day for the first 90 days late and $100 per day thereafter, and for under 100 participants, the penalty amount is subject to reduction as provided in § 4071.11(d) and is not more than 5 percent of the value of benefits distributed at plan termination.</P>
                            <P>(3) If a notice of intent to terminate has not been issued in accordance with § 4041.23 of this chapter, the information penalty generally is not assessed for any period after distribution of benefits has begun.</P>
                            <P>(4) If a notice of plan benefits has not been issued in accordance with § 4041.24 of this chapter, the information penalty generally assessed is not more than $100 times the number of participants.</P>
                            <P>
                                (c) 
                                <E T="03">Distress terminations.</E>
                                 For information requirements under subpart C of part 4041 of this chapter, PBGC is guided by the standards in § 4071.11(c), and the penalty amount is subject to reduction as provided in § 4071.11(d).
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.16 </SECTNO>
                            <SUBJECT>Annual financial and actuarial information reporting.</SUBJECT>
                            <P>(a) In assessing penalties for noncompliance with reporting requirements under part 4010 of this chapter, PBGC is guided by the standards in this section.</P>
                            <P>(b) Except as provided in paragraph (c) of this section, for information requirements under part 4010 of this chapter, the penalty generally assessed is $100 per day.</P>
                            <P>(c) For information requirements under § 4010.6(a)(2), PBGC is guided by the standards in § 4071.11(c), and the penalty amount is not subject to reduction under § 4071.11(d).</P>
                        </SECTION>
                    </SUBPART>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart D—Waivers</HD>
                        <SECTION>
                            <SECTNO>§ 4071.21 </SECTNO>
                            <SUBJECT>Waivers.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Waivers are discretionary.</E>
                                 PBGC waives all or a portion of information penalties to the extent that PBGC, in its discretion, determines is appropriate under the facts and circumstances of each case.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Waiver principles.</E>
                                 In exercising its discretion to waive information penalties, PBGC is guided by the provisions of §§ 4071.22-4071.26 for waiver of information penalties and § 4071.27 for aggravating factors. The principles in §§ 4071.22-4071.26 make it more likely that a penalty will be waived and tend to decrease the amount of any penalty, and the principles in § 4071.27 make it less likely that a penalty will be waived and tend to increase the amount of any penalty.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Consistency.</E>
                                 In exercising its discretion to waive information penalties, PBGC is consistent in its treatment of similar facts and circumstances.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.22 </SECTNO>
                            <SUBJECT>Reasonable cause.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to reasonable cause, that is—
                            </P>
                            <P>(1) The noncompliance arose from circumstances beyond the control of the filer, and</P>
                            <P>(2) The filer could not avoid noncompliance by the exercise of ordinary business care and prudence.</P>
                            <P>
                                (b) 
                                <E T="03">Outside advisors.</E>
                                 In determining to what extent there was reasonable cause, PBGC generally treats outside advisors as part of the filer.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Size of filer.</E>
                                 In determining whether ordinary business care and prudence was exercised, PBGC recognizes that the size of the organization may affect what ordinary business care and prudence would require.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Seriousness of matter.</E>
                                 In determining whether ordinary business care and prudence was exercised, PBGC recognizes that the importance of a matter generally influences the degree of business care and prudence appropriate to attending to the matter.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.23 </SECTNO>
                            <SUBJECT>Error of law.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Erroneous interpretation.</E>
                                 PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to reasonable reliance on an erroneous interpretation of law if either—
                            </P>
                            <P>(1) The interpretation was not frivolous and was timely disclosed to PBGC, or</P>
                            <P>(2) The interpretation was supported by substantial weight of authority.</P>
                            <P>
                                (b) 
                                <E T="03">Change in law.</E>
                                 PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to excusable ignorance of a recent change in the law, if—
                            </P>
                            <P>(1) The filer's behavior would have been compliant under the law before the change,</P>
                            <P>(2) The change was very recent,</P>
                            <P>(3) The change received little notice, and</P>
                            <P>(4) The change was technical.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.24 </SECTNO>
                            <SUBJECT>PBGC delay.</SUBJECT>
                            <P>PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to PBGC delay in considering non-frivolous arguments of the filer about the applicability of a statutory or regulatory requirement to provide section 4071 information.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.25 </SECTNO>
                            <SUBJECT>Mitigating factors.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 In deciding whether to waive an information penalty, PBGC may consider the mitigating factors in this section.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Self-correction.</E>
                                 It is a mitigating factor if the filer—
                            </P>
                            <P>(1) Promptly, upon discovery, corrected the noncompliance, and</P>
                            <P>(2) Notified PBGC of the noncompliance before PBGC notified the filer of possible noncompliance.</P>
                            <P>
                                (c) 
                                <E T="03">Preventive measures.</E>
                                 It is a mitigating factor if the filer cooperates with PBGC in taking steps to ensure future compliance.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Identical information requirements.</E>
                                 PBGC generally treats noncompliance with a requirement to provide multiple persons with notices that contain identical information requirements as a single incidence of noncompliance.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.26 </SECTNO>
                            <SUBJECT>Other circumstances.</SUBJECT>
                            <P>PBGC may waive information penalties in other circumstances if PBGC determines that it is appropriate to do so.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4071.27 </SECTNO>
                            <SUBJECT>Aggravating factors.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 PBGC generally does not waive information penalties and may assess a penalty as much as the maximum daily amount specified in § 4071.3 when any of the aggravating factors in this section are applicable.
                                <PRTPAGE P="45749"/>
                            </P>
                            <P>
                                (b) 
                                <E T="03">Potential for harm.</E>
                                 Noncompliance has the potential for significantly more harm than is typically associated with noncompliance with information requirements, whether or not any harm is in fact caused.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Repeat offender.</E>
                                 The filer has a previous instance of noncompliance with respect to an information requirement subject to section 4071 of ERISA that applied to the filer.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Willfulness.</E>
                                 An instance of noncompliance is conscious and purposeful rather than inadvertent and accidental.
                            </P>
                        </SECTION>
                    </SUBPART>
                </PART>
                <AMDPAR>2. Revise part 4302 to read as follows:</AMDPAR>
                <PART>
                    <HD SOURCE="HED">PART 4302—PENALTIES FOR FAILURE TO PROVIDE CERTAIN MULTIEMPLOYER NOTICES</HD>
                    <CONTENTS>
                        <SUBPART>
                            <HD SOURCE="HED">Subpart A—Purpose and Definitions</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4302.1 </SECTNO>
                            <SUBJECT>Purpose and scope.</SUBJECT>
                            <SECTNO>4302.2 </SECTNO>
                            <SUBJECT>Definitions</SUBJECT>
                            <SECTNO>4302.3 </SECTNO>
                            <SUBJECT>Maximum daily amount.</SUBJECT>
                        </SUBPART>
                        <SUBPART>
                            <HD SOURCE="HED">Subpart B—Opportunity for Reconsideration</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4302.5 </SECTNO>
                            <SUBJECT>Reconsideration</SUBJECT>
                        </SUBPART>
                        <SUBPART>
                            <HD SOURCE="HED">Subpart C—Assessment Rules</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4302.11 </SECTNO>
                            <SUBJECT>General assessment.</SUBJECT>
                        </SUBPART>
                        <SUBPART>
                            <HD SOURCE="HED">Subpart D—Waivers</HD>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>4302.21 </SECTNO>
                            <SUBJECT>Waivers.</SUBJECT>
                            <SECTNO>4302.22 </SECTNO>
                            <SUBJECT>Reasonable cause.</SUBJECT>
                            <SECTNO>4302.23 </SECTNO>
                            <SUBJECT>Error of law.</SUBJECT>
                            <SECTNO>4302.24 </SECTNO>
                            <SUBJECT>PBGC delay.</SUBJECT>
                            <SECTNO>4302.25 </SECTNO>
                            <SUBJECT>Mitigating factors.</SUBJECT>
                            <SECTNO>4302.26 </SECTNO>
                            <SUBJECT>Other circumstances.</SUBJECT>
                        </SUBPART>
                    </CONTENTS>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 114-74, 129 Stat. 599-601; 29 U.S.C. 1302(b)(3), 1452.</P>
                    </AUTH>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart A—Purpose and Definitions</HD>
                        <SECTION>
                            <SECTNO>§ 4302.1 </SECTNO>
                            <SUBJECT>Purpose and scope.</SUBJECT>
                            <P>This part specifies the penalty amounts that may be assessed by PBGC under section 4302 of ERISA for failure to provide certain notices required for multiemployer plans.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.2 </SECTNO>
                            <SUBJECT>Definitions.</SUBJECT>
                            <P>The following terms are defined in § 4001.2 of this chapter: ERISA and PBGC. In addition, for purposes of this part:</P>
                            <P>
                                <E T="03">Filer</E>
                                 means a person required to timely provide section 4302 information.
                            </P>
                            <P>
                                <E T="03">Information penalty</E>
                                 means a penalty under section 4302 of ERISA for failure to timely provide section 4302 information.
                            </P>
                            <P>
                                <E T="03">Noncompliance</E>
                                 means failure to timely provide section 4302 information.
                            </P>
                            <P>
                                <E T="03">Section 4302 information</E>
                                 means any multiemployer notice to which section 4302 of ERISA applies.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.3 </SECTNO>
                            <SUBJECT>Maximum daily amount.</SUBJECT>
                            <P>The maximum daily amount of the penalty under section 4302 of ERISA is $365. Such amount has been adjusted to account for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, and as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.</P>
                        </SECTION>
                    </SUBPART>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart B—Opportunity for Reconsideration</HD>
                        <SECTION>
                            <SECTNO>§ 4302.5 </SECTNO>
                            <SUBJECT>Reconsideration.</SUBJECT>
                            <P>As permitted by § 4003.1(c)(1) of this chapter, PBGC allows a person aggrieved by an initial determination with respect to penalties under section 4302 of ERISA to request reconsideration in accordance with the rules prescribed in subpart C of part 4003 of this chapter.</P>
                        </SECTION>
                    </SUBPART>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart C—Assessment Rules</HD>
                        <SECTION>
                            <SECTNO>§ 4302.11 </SECTNO>
                            <SUBJECT>General assessment.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Assessment is discretionary.</E>
                                 PBGC generally assesses information penalties under this subpart in such amounts as PBGC, in its discretion, determines are appropriate under the facts and circumstances of each case.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Assessment principles.</E>
                                 In exercising its discretion to assess information penalties, PBGC considers the penalty waiver principles in subpart D of this part and is consistent in its treatment of similar facts and circumstances.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Daily amount.</E>
                                 Information penalties are generally the maximum daily amount specified in § 4302.3 for each day late.
                            </P>
                        </SECTION>
                    </SUBPART>
                    <SUBPART>
                        <HD SOURCE="HED">Subpart D—Waivers</HD>
                        <SECTION>
                            <SECTNO>§ 4302.21 </SECTNO>
                            <SUBJECT>Waivers.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Waivers are discretionary.</E>
                                 PBGC waives all or a portion of information penalties to the extent that PBGC in its discretion determines is appropriate under the facts and circumstances of each case.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Waiver principles.</E>
                                 In exercising its discretion to waive information penalties, PBGC is guided by the provisions of §§ 4302.22-4302.26 for waiver of information penalties, and the principles in §§ 4302.22-4302.25 make it more likely that a penalty will be waived and tend to decrease the amount of any penalty.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Consistency.</E>
                                 In exercising its discretion to waive information penalties, PBGC is consistent in its treatment of similar facts and circumstances.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.22 </SECTNO>
                            <SUBJECT>Reasonable cause.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to reasonable cause, that is—
                            </P>
                            <P>(1) The noncompliance arose from circumstances beyond the control of the filer, and</P>
                            <P>(2) The filer could not avoid noncompliance by the exercise of ordinary business care and prudence.</P>
                            <P>
                                (b) 
                                <E T="03">Outside advisors.</E>
                                 In determining to what extent there was reasonable cause, PBGC generally treats outside advisors as part of the filer.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Size of filer.</E>
                                 In determining whether ordinary business care and prudence was exercised, PBGC recognizes that the size of the organization may affect what ordinary business care and prudence would require.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Seriousness of matter.</E>
                                 In determining whether ordinary business care and prudence was exercised, PBGC recognizes that the importance of a matter generally influences the degree of business care and prudence appropriate to attending to the matter.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.23 </SECTNO>
                            <SUBJECT>Error of law.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Erroneous interpretation.</E>
                                 PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to reasonable reliance on an erroneous interpretation of law if either—
                            </P>
                            <P>(1) The interpretation was not frivolous and was timely disclosed to PBGC, or</P>
                            <P>(2) The interpretation was supported by substantial weight of authority.</P>
                            <P>
                                (b) 
                                <E T="03">Change in law.</E>
                                 PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to excusable ignorance of a recent change in the law, if—
                            </P>
                            <P>(1) The filer's behavior would have been compliant under the law before the change,</P>
                            <P>(2) The change was very recent,</P>
                            <P>(3) The change received little notice, and</P>
                            <P>(4) The change was technical.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.24 </SECTNO>
                            <SUBJECT>PBGC delay.</SUBJECT>
                            <P>
                                PBGC generally waives information penalties to the extent that PBGC determines that noncompliance was due to PBGC delay in considering non-
                                <PRTPAGE P="45750"/>
                                frivolous arguments of the filer about the applicability of a statutory or regulatory requirement to provide section 4302 information.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.25 </SECTNO>
                            <SUBJECT>Mitigating factors.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 In deciding whether to waive an information penalty, PBGC may consider the mitigating factors in this section.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Self-correction.</E>
                                 It is a mitigating factor if the filer—
                            </P>
                            <P>(1) Promptly upon discovery corrected the noncompliance, and</P>
                            <P>(2) Notified PBGC of the noncompliance before PBGC notified the filer of possible noncompliance.</P>
                            <P>
                                (c) 
                                <E T="03">Preventive measures.</E>
                                 It is a mitigating factor if the filer cooperates with PBGC in taking steps to ensure future compliance.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Identical information requirements.</E>
                                 PBGC generally treats noncompliance with a requirement to provide multiple persons with notices that contain identical information requirements as a single incidence of noncompliance.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.26 </SECTNO>
                            <SUBJECT>Other circumstances.</SUBJECT>
                            <P>PBGC may waive information penalties in other circumstances if PBGC determines that it is appropriate to do so.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 4302.27 </SECTNO>
                            <SUBJECT>Aggravating factors.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">In general.</E>
                                 PBGC generally does not waive information penalties when any of the aggravating factors in this section are applicable.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Potential for harm.</E>
                                 Noncompliance has the potential for significantly more harm than is typically associated with noncompliance with information requirements, whether or not any harm is in fact caused.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Repeat offender.</E>
                                 The filer has a previous instance of noncompliance with respect to an information requirement subject to section 4302 of ERISA that applied to the filer.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Willfulness.</E>
                                 An instance of noncompliance is conscious and purposeful rather than inadvertent and accidental.
                            </P>
                        </SECTION>
                    </SUBPART>
                    <SIG>
                        <NAME>Janet Dhillon,</NAME>
                        <TITLE>Director, Pension Benefit Guaranty Corporation.</TITLE>
                    </SIG>
                </PART>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14627 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7709-02-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <CFR>50 CFR Part 17</CFR>
                <DEPDOC>[Docket No. FWS-R8-ES-2026-2477; FXES1111090FEDR-267-FF09E21000]</DEPDOC>
                <SUBJECT>Endangered and Threatened Wildlife and Plants; 12-Month Finding for the San Francisco Estuary Distinct Population Segment of White Sturgeon</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notification of 12-month finding.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        We, the U.S. Fish and Wildlife Service (Service), announce a 12-month finding on a petition to list the San Francisco Estuary (SFE) distinct population segment (DPS) of white sturgeon (
                        <E T="03">Acipenser transmontanus;</E>
                         San Francisco Estuary white sturgeon) as a threatened species under the Endangered Species Act of 1973, as amended (Act). After a thorough review of the best available scientific and commercial information, we find that listing the SFE DPS of white sturgeon as an endangered or threatened species is warranted but precluded by higher priority actions to amend the Lists of Endangered and Threatened Wildlife and Plants. We will develop a proposed rule to list the SFE DPS white sturgeon as our priorities allow. However, we ask the public to submit to us any new information relevant to the status of the species or its habitat at any time.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The finding in this document was made on July 21, 2026.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        A detailed description of the basis for this finding is available on the internet at 
                        <E T="03">https://www.regulations.gov</E>
                         under docket number FWS-R8-ES-2026-2477.
                    </P>
                    <P>
                        Supporting information used to prepare this finding is available for public inspection, by appointment, during normal business hours, by contacting the person specified under 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                        . Please submit any new information, materials, comments, or questions concerning this finding to the person specified under 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                        .
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Heather Swinney, Acting Field Supervisor, San Francisco Bay-Delta Fish and Wildlife Office, telephone: 916-594-3646, email: 
                        <E T="03">CAwhitesturgeon@fws.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>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    Under section 4(b)(3)(B) of the Act (16 U.S.C. 15333(b)(3)(B)), we are required to make a finding on whether or not a petitioned action is warranted within 12 months after receiving any petition that we have determined contains substantial scientific or commercial information indicating that the petitioned action may be warranted (“12-month finding”). We must make a finding that the petitioned action is (1) not warranted, (2) warranted, or (3) warranted but precluded. “Warranted but precluded” means that (a) the petitioned action is warranted, but the immediate proposal of a regulation implementing the petitioned action is precluded by other pending proposals to determine whether species are endangered or threatened species, and (b) expeditious progress is being made to add qualified species to the Lists of Endangered and Threatened Wildlife and Plants (Lists) and to remove from the Lists species for which the protections of the Act are no longer necessary. Section 4(b)(3)(C) of the Act requires that, when we find that a petitioned action is warranted but precluded, we treat the petition as though it is resubmitted on the date of such finding, that is, requiring that a subsequent finding be made within 12 months of that date. We must publish these 12-month findings in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD1">Summary of Information Pertaining to the Five Factors</HD>
                <P>
                    Section 4 of the Act (16 U.S.C. 1533) and the implementing regulations at part 424 of title 50 of the Code of Federal Regulations (50 CFR part 424) set forth procedures for adding species to, removing species from, or reclassifying species on the Lists (found in 50 CFR part 17). The Act defines “endangered species” as any species that is in danger of extinction throughout all or a significant portion of its range (16 U.S.C. 1532(6)) and “threatened species” as any species that is likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range (16 U.S.C. 1532(20)). Under section 4(a)(1) of the Act, a species may be determined to be an endangered 
                    <PRTPAGE P="45751"/>
                    species or a threatened species because of any of the following five factors:
                </P>
                <P>(A) The present or threatened destruction, modification, or curtailment of its habitat or range;</P>
                <P>(B) Overutilization for commercial, recreational, scientific, or educational purposes;</P>
                <P>(C) Disease or predation;</P>
                <P>(D) The inadequacy of existing regulatory mechanisms; or</P>
                <P>(E) Other natural or manmade factors affecting its continued existence.</P>
                <P>These factors represent broad categories of natural or human-caused actions or conditions that could have an effect on a species' continued existence. In evaluating these actions and conditions, we look for those that may have a negative effect on individuals of the species, as well as other actions or conditions that may ameliorate any negative effects or may have positive effects.</P>
                <P>We use the term “threat” to refer in general to actions or conditions that are known to or are reasonably likely to negatively affect individuals of a species. The term “threat” includes actions or conditions that have a direct impact on individuals (direct impacts), as well as those that affect individuals through alteration of their habitat or required resources (stressors). The term “threat” may encompass—either together or separately—the source of the action or condition or the action or condition itself.</P>
                <P>However, the mere identification of any threat(s) does not necessarily mean that the species meets the statutory definition of an “endangered species” or a “threatened species.” In determining whether a species meets either definition, we must evaluate all identified threats by considering the expected response by the species, and the effects of the threats—in light of those actions and conditions that will ameliorate the threats—on an individual, population, and species level. We evaluate each threat and its expected effects on the species, then analyze the cumulative effect of all of the threats on the species as a whole. We also consider the cumulative effect of the threats in light of those actions and conditions that will have positive effects on the species, such as any existing regulatory mechanisms or conservation efforts. The Secretary of the Interior determines whether the species meets the definition of an “endangered species” or a “threatened species” only after conducting this cumulative analysis and describing the expected effect on the species.</P>
                <P>
                    The Act does not define the term “foreseeable future,” which appears in the statutory definition of “threatened species.” Our implementing regulations at 50 CFR 424.11(d) set forth a framework for evaluating the foreseeable future on a case-by-case basis, which is further described in the 2009 Memorandum Opinion on the foreseeable future from the Department of the Interior, Office of the Solicitor (M-37021, January 16, 2009; “M-Opinion,” available online at 
                    <E T="03">https://www.doi.gov/sites/doi.opengov.ibmcloud.com/files/uploads/M-37021.pdf</E>
                    ). The foreseeable future extends as far into the future as the U.S. Fish and Wildlife Service can make reasonably reliable predictions about the threats to the species and the species' responses to those threats. We need not identify the foreseeable future in terms of a specific period of time. We will describe the foreseeable future on a case-by-case basis, using the best scientific and commercial data available and taking into account considerations such as the species' life-history characteristics, threat projection timeframes, and environmental variability. In other words, the foreseeable future is the period of time over which we can make reasonably reliable predictions. “Reliable” does not mean “certain”; it means sufficient to provide a reasonable degree of confidence in the prediction, in light of the conservation purposes of the Act.
                </P>
                <P>It is not always possible or necessary to define foreseeable future as a particular number of years. Analysis of the foreseeable future uses the best scientific and commercial data available and should consider the timeframes applicable to the relevant threats and to the species' likely responses to those threats in view of its life-history characteristics. Data that are typically relevant to assessing the species' biological response include species-specific factors such as lifespan, reproductive rates or productivity, certain behaviors, and other demographic factors.</P>
                <P>In conducting our evaluation of the five factors provided in section 4(a)(1) of the Act to determine whether the SFE white sturgeon meets the definition of an “endangered species” or a “threatened species,” we considered and thoroughly evaluated the best scientific and commercial data available regarding the past, present, and future stressors and threats. We reviewed the petition, information available in our files, and other available published and unpublished information. Our evaluation may include information from recognized experts; Federal, State, and Tribal governments; academic institutions; foreign governments; private entities; and other members of the public.</P>
                <P>
                    The species assessment form for the SFE white sturgeon contains more detailed biological information, a thorough analysis of the listing factors. To inform our status review, we completed a species status assessment (SSA) report for the SFE white sturgeon. This SSA report contains a thorough review of the taxonomy, life history, ecology, current status, and projected future status for this species. This supporting information can be found on the internet at 
                    <E T="03">https://www.regulations.gov</E>
                     under docket number FWS-R8-ES-2026-2477.
                </P>
                <HD SOURCE="HD1">Previous Federal Actions</HD>
                <P>
                    On December 6, 2023, we received a petition from the San Francisco Baykeeper (Baykeeper), The Bay Institute (BI), Restore the Delta (RD), and California Sportfishing Restoration Alliance (CSRA) requesting that we list the SFE DPS of white sturgeon as a threatened species under the Act. On October 8, 2024, we published a 90-day finding that the petition presented substantial scientific or commercial information indicating that listing the SFE DPS of white sturgeon may be warranted (89 FR 81388). On February 10, 2025, the Baykeeper, BI, RD, and CSRA filed a complaint against the Service for not issuing a finding on the petition within the statutory timeframe and on September 3, 2025, a court order was issued to submit the 12-month finding to the 
                    <E T="04">Federal Register</E>
                     by June 3, 2026 (
                    <E T="03">S.F. Baykeeper, et al.</E>
                     v. 
                    <E T="03">United States Fish &amp; Wildlife Serv., et al.,</E>
                     No. 25-cv-01360-LJC, ECF 33 (N.D. Cal. Sep. 3, 2025)). On December 23, 2025, the court granted an extension of this deadline to July 16, 2026 (
                    <E T="03">S.F. Baykeeper, et al.</E>
                     v. 
                    <E T="03">United States Fish &amp; Wildlife Serv., et al.,</E>
                     No. 25-cv-01360-LJC, ECF 47 (N.D. Cal. Dec. 23, 2025)).
                </P>
                <HD SOURCE="HD1">Distinct Population Segment (DPS) Analysis</HD>
                <P>
                    Section 3(16) of the Act defines “species” to include “any subspecies of fish or wildlife or plants, and any distinct population segment of any species of vertebrate fish or wildlife which interbreeds when mature” (16 U.S.C. 1532 (16)). To guide the interpretation of the DPS provisions of the Act, we and the National Marine Fisheries Service (National Oceanic and Atmospheric Administration-Fisheries) published the Policy Regarding the Recognition of Distinct Vertebrate Population Segments under the Endangered Species Act (DPS Policy) on February 7, 1996 (61 FR 4722).
                    <PRTPAGE P="45752"/>
                </P>
                <P>Under our DPS Policy, we use two elements to assess whether a population segment under consideration for listing may be recognized as a DPS: (1) The population segment's discreteness from the remainder of the species to which it belongs, and (2) the significance of the population segment to the species to which it belongs. If we determine that a population segment being considered for listing is a DPS, then the population segment's conservation status is evaluated based on the five listing factors established by the Act to determine if listing it as either an endangered species or threatened species is warranted.</P>
                <P>Discreteness is evaluated based on specific criteria provided in the DPS Policy. If a population segment is considered discrete under the DPS Policy, we must then consider whether the discrete segment is “significant” to the taxon to which it belongs. If we determine that a population segment is discrete and significant, we then evaluate it for endangered or threatened status based on the Act's standards. The DPS evaluation in this finding concerns the SFE (including the Sacramento River and San Joaquin River) population of the white sturgeon that we were petitioned to list as a threatened species (Figure 1).</P>
                <HD SOURCE="HD2">Discreteness Analysis</HD>
                <P>Under our DPS Policy, a population segment of a vertebrate species may be considered discrete if it satisfies either one of the following conditions: (1) it is markedly separated from other populations of the same taxon as a consequence of physical, physiological, ecological, or behavioral factors (quantitative measures of genetic or morphological discontinuity may provide evidence of this separation); or (2) it is delimited by international governmental boundaries within which differences in control of exploitation, management of habitat, conservation status, or regulatory mechanisms exist that are significant in light of section 4(a)(1)(D) of the Act.</P>
                <HD SOURCE="HD2">Markedly Separated From Other Populations of the Same Taxon</HD>
                <P>Historically, white sturgeon have been observed broadly along the west coast of North America from the Aleutian Islands, Alaska to Ensenada, Mexico. Currently, along the West Coast, three spawning populations of white sturgeon have been identified: the Fraser River, the Columbia River, and the southernmost in the Sacramento-San Joaquin river system (Hildebrand et al. 2016, p. 262). Within the Columbia River basin there exist multiple populations, some of which have become landlocked through dam construction or via natural processes such as the federally listed Kootenai Sturgeon (Hildebrand et al. 2016, pp. 264, 278). In the Fraser River basin, which is without significant barriers to movement on the mainstem, white sturgeon appear to have segregated into up to four populations (Hildebrand et al. 2016, pp. 264-265). In contrast, the Sacramento-San Joaquin basin does not appear to possess population structure, suggesting there is only a single population in the basin (SFE white sturgeon) (Schreier et al. 2013, p. 1278).</P>
                <P>The SFE white sturgeon is markedly separated from other populations of this species. The nearest breeding population of white sturgeon is over 700 miles (1127 kilometers) away in the Columbia River Estuary. Thus, the distance between the SFE population of white sturgeon and the nearest other extant breeding population represents marked geographical separation. White sturgeon are capable of long-distance movements, and a few SFE white sturgeon individuals have been captured near the Columbia River Estuary. However, the majority of individuals remain in or near their natal estuaries, and genetic exchange between populations is believed to be rare.</P>
                <P>
                    In addition, genetic data indicate separation between the SFE population and other white sturgeon spawning populations (Schreier et al. 2013, p. 8; Willis et al. 2022, p. 8). Several investigations have revealed population genetic structuring among the SFE white sturgeon, Columbia, and Fraser River systems. Studies identifed signifcant differences between these river systems in allozyme allele or mitochondrial DNA haplotype frequencies (Bartley et al. 1985, p. 109; Hildebrand et al. 2016, p. 264). The genetic signature of the SFE white sturgeon population is found in the lower Columbia and lower Fraser collections; however, the genetic signatures of the lower Columbia and lower Fraser collections were far less apparent in the SFE white sturgeon collection (Schreier et al. 2013, pp. 1280, 1282). This suggests a low level of gene flow occurs among the three populations (lower Columbia, lower Fraser, and SFE), but the gene flow may be predominantly in a northward direction (
                    <E T="03">i.e.,</E>
                     SFE white sturgeon may contribute genes to the lower Columbia or lower Fraser populations), with very little gene flow from other populations entering the SFE white sturgeon population. Researchers have documented movement of some individuals between these three populations (Chadwick 1959, p. 300; DeVore et al. 1999, p. 18; Welch et al. 2006, entire), although the frequency is not well understood and they appear to be relatively rare. Furthermore, we do not consider complete reproductive isolation a necessary prerequisite to recognizing discreteness.
                </P>
                <P>The SFE population of white sturgeon is markedly separate from the other populations of white sturgeon (Columbia River and Fraser River), as evidenced by the distances between breeding populations and quantitative measures of genetic distinctiveness. As a result, we have determined that the SFE population of white sturgeon meets the condition of discreteness under our DPS policy.</P>
                <HD SOURCE="HD2">Significance Analysis</HD>
                <P>The DPS Policy states that if a population segment is considered discrete under one or both of the discreteness criteria, its biological and ecological significance will then be considered in light of Congressional guidance that the authority to list DPSs be used “sparingly” while encouraging the conservation of genetic diversity. In carrying out this examination, the Service considers available scientific evidence of the DPS's importance to the taxon to which it belongs. As specified in the DPS Policy, this consideration of the significance may include, but is not limited to, the following: (1) persistence of the discrete population segment in an ecological setting unusual or unique to the taxon; (2) evidence that its loss would result in a significant gap in the range of the taxon; (3) evidence that it is the only surviving natural occurrence of a taxon that may be more abundant elsewhere as an introduced population outside its historical range; or (4) evidence that the discrete population segment differs markedly from other populations of the species in its genetic characteristics. The DPS Policy further states that because precise circumstances are likely to vary considerably from case to case, it is not possible to describe prospectively all the classes of information that might bear on the biological and ecological importance of a discrete population segment. We evaluated the SFE white sturgeon discrete population segment to see if it met the conditions of significance under our DPS policy.</P>
                <HD SOURCE="HD3">Evidence That Loss of the DPS Would Result in a Significant Gap in the Range of the Taxon</HD>
                <P>
                    The SFE white sturgeon population makes up between one-third and one-half of the inland waters of the entire range of the white sturgeon. Its loss would sever critical latitudinal 
                    <PRTPAGE P="45753"/>
                    connectivity, eliminate the primary reproductive stronghold in California, and truncate the southern range of the entire taxon by hundreds of miles. The SFE white sturgeon population is a reproducing population with distinct spawning runs and is a core resident population rather than a transient sink. If the SFE white sturgeon population were lost, there are no neighboring river systems in California or Oregon capable of absorbing or replacing this reproductive output, resulting in a permanent ecological vacancy across all of California. Loss of the SFE white sturgeon population would represent a signifcant gap in the species' geographic range, substantially reducing the range of this fsh along the Pacifc Coast.
                </P>
                <P>The DPS Policy requires evaluating the biological and ecological significance of a population segment once it is determined to be discrete, emphasizing that DPS designation should be used sparingly while supporting genetic diversity conservation. Loss of this population would create a significant gap in the species' U.S. range, as the SFE population comprises more than half of that range, and would disrupt northward genetic exchange with Columbia and Fraser River populations.</P>
                <HD SOURCE="HD2">Conclusion of Distinct Population Segment Review</HD>
                <P>Our DPS Policy directs us to evaluate whether populations of a species are separate from each other to the degree they qualify as discrete segments and whether those segments are significant to the remainder of the species to which it belongs. Based on an analysis of the best available scientific and commercial data, we conclude that the SFE white sturgeon population is discrete due to it being markedly separated from other populations of the same taxon. Furthermore, we conclude that the SFE white sturgeon population is significant because the loss of the discrete population segment would result in a significant gap in the range of the taxon. Because the SFE white sturgeon population is both discrete and significant, we find that it is a distinct population segment under our DPS Policy and is, therefore, a uniquely listable entity under the Act.</P>
                <BILCOD>BILLING CODE 4333-15-P</BILCOD>
                <GPH SPAN="3" DEEP="502">
                    <PRTPAGE P="45754"/>
                    <GID>EP21JY26.001</GID>
                </GPH>
                <BILCOD>BILLING CODE 4333-15-C</BILCOD>
                <HD SOURCE="HD2">Conservation Status</HD>
                <P>
                    Based on our DPS Policy (61 FR 4722; February 7, 1996), if a population segment of a vertebrate species is both discrete and significant relative to the taxon as a whole (
                    <E T="03">i.e.,</E>
                     it is a distinct population segment), its evaluation for endangered or threatened status will be based on the Act's definition of those terms and a review of the factors enumerated in section 4(a) of the Act. Having found that the SFE white sturgeon population meets the definition of a DPS, we then evaluated the status of the SFE white sturgeon population to determine whether it met the definition of an endangered or threatened species under the Act.
                </P>
                <HD SOURCE="HD1">Summary of Finding</HD>
                <P>
                    The SFE white sturgeon is a long-lived (can exceed 100 years of age), late-maturing (average age of 14 years), iteroparous (
                    <E T="03">i.e.,</E>
                     reproducing multiple times throughout their life cycle) species with a life cycle tied tightly to freshwater flow, habitat connectivity, and diverse river-estuary environments. This population depends on access to coarse-substrate riverine spawning grounds in the Sacramento and San Joaquin Rivers, flow-driven cues (March-July outflow exceeds 37,000 cubic feet per second) for spawning migrations, and suitable temperatures (&lt;20 °C (68 °F)) and substrates (gravel or coarser substrate) for egg and larval survival, while juveniles and adults require broad estuarine habitat with tolerable salinity ranges for juveniles (~0-15 parts per thousand), abundant benthic prey (
                    <E T="03">e.g.,</E>
                     invertebrates, bivalves, crustaceans, and fish), and seasonally shifting distribution patterns.
                </P>
                <P>
                    We have carefully assessed the best scientific and commercial information 
                    <PRTPAGE P="45755"/>
                    available regarding the past, present, and future threats to the SFE white sturgeon, and we evaluated all relevant factors under the five listing factors, including any regulatory mechanisms and conservation measures addressing these stressors. The primary threats to the SFE white sturgeon's biological status include loss and degradation of habitat from dams, water diversions, contaminants, harmful algal blooms (HABs), and drought (Factor A); poaching and effects from historical harvest (Factor B); and potential increase in water temperature (Factor E). Conservation efforts, such as a State-regulated catch-and-release fishery, are addressing some of the impacts from overharvest, and there are various efforts to improve water quality throughout the range of the SFE white sturgeon. However, these efforts and the existing regulatory mechanisms (Factor D) are not sufficient to mitigate all of the threats. We found no evidence that the SFE white sturgeon is currently impacted by disease or predation (Factor C), nor did we find information to suggest that the species will be impacted by this factor in the future. We also acknowledge that individual SFE white sturgeon are killed from entrainment but we found no evidence to suggest that this mortality has population level effects at this time.
                </P>
                <P>The range of the entire species of the white sturgeon extends from the Aleutian Islands in Alaska south to Ensenada, Mexico (Ruiz-Campos et al. 2011, p. 37; Hildebrand et al. 2016, p. 262). Historically there was connectivity between the SFE white sturgeon population and the rest of the white sturgeon populations throughout the species' range. The SFE white sturgeon population is now separated by approximately 700 miles (1127 kilometers) from the next closest spawning population of white sturgeon in the Columbia River. The range of the SFE white sturgeon has been further limited due to impoundments obstructing access to many of its historical reaches and water diversions creating dry river sections in the San Joaquin River (Jackson et al. 2016, p. 172). Loss of connectivity in fish populations results in reduced movement, lower genetic exchange, and a higher risk of decline or local extinctions. Fragmentation caused by dams, culverts, or other barriers disrupts the natural flow of individuals across a river network, which is essential for healthy population dynamics (Leite et al. 2022, entire).</P>
                <P>
                    The viability of the SFE white sturgeon population is shaped by a suite of interacting threats and management responses. Historically, dam construction and levee systems curtailed access to upstream spawning grounds, altered sediment transport, and reduced access to the floodplain. Construction of dams and other impoundments have precluded access to known spawning locations, although due to poor historical records of habitat use the full extent of spawning habitat and range loss is unknown. Flow regulation and large-scale water diversions have flattened the hydrograph (
                    <E T="03">i.e.,</E>
                     reduced the peak volume of water flowing at any one time), reducing spring flows that cue spawning and likely affecting coarse substrate availability during egg incubation and larval rearing. Recruitment success is positively associated with March-July outflows, with little to no recruitment occurring during drought years, making the species vulnerable to drought and operational constraints. Contaminant exposure, particularly selenium and mercury, remains a chronic stressor. Selenium concentrations found in adult fish may be reducing survival of offspring in early-life stages, while mercury bioaccumulation is likely impairing reproductive potential and overall health (Gundersen et al. 2017, p. 342). HABs add acute and chronic risks. For example, 
                    <E T="03">Microcystis</E>
                     blooms exert sublethal effects, while the 2022 
                    <E T="03">Heterosigma akashiwo</E>
                     bloom caused unprecedented adult SFE sturgeon and green sturgeon mortality. It was estimated that more than half of the adult SFE white sturgeon population resided in the region affected by the 2022 HAB bloom (Walter et al. 2026, p. 10). Additional stressors include entrainment at export facilities, ship strikes, and residual poaching, which affect individual sturgeon and we have concluded that they are likely having cumulative impacts when considered together with ongoing population-level impacts.
                </P>
                <P>The SFE white sturgeon has a long history of exploitation, beginning with heavy commercial harvest that began in the 1860s. The fishery was closed in the early 1900s due to rapidly declining catch rates and low population numbers (Moyle 2002, p. 109). A recreational fishery was opened in 1954 and that fishery remained open (with varying harvest and slot limits over the years), yet population declines persisted due to the species' vulnerability to overharvest stemming from long lifespans, late maturity, and periodic spawning. Harvest above a sustainable rate contributed to truncated age structure, very low survival beyond the slot size (generally meaning fish large enough to spawn), and population growth below replacement, (Blackburn et al. 2019, p. 903). Following a major HAB-related die-off, the fishery became catch-and-release only in 2024, which reduced harvest pressure; however, some mortality and stress—especially for spawning-condition fish—still occur. Despite these protections, poaching remains an ongoing, unquantified threat due to the high value of sturgeon caviar (Israel et al. 2009, p. 22; Hildebrand et al. 2016, pp. 290, 295).</P>
                <P>
                    These threats operate synergistically rather than in isolation. Dams and flow regulations have likely limited availability of spawning habitat and potentially exacerbated sedimentation, while contaminants and HABs may compound physiological stress during drought years. Acute mortality events (
                    <E T="03">e.g.,</E>
                     HAB-driven fish kills) remove large fecund adults, amplifying demographic vulnerability already heightened by potential entrainment losses and historical harvest. Together, these stressors create a feedback loop of reduced recruitment, high adult mortality, and lowered resilience, pushing the population toward long-term viability risk.
                </P>
                <P>
                    Conservation actions aim to mitigate these pressures through flow and habitat management, regulatory protections, and targeted research. Programs under the Central Valley Project Improvement Act (Pub. L. 102-575, Title 34) and objectives under the California State Water Resources Control Board Revised Water Right Decision 1641 (D-1641) provide environmental flows and monitoring aimed to benefit other at-risk species by providing increased freshwater flow at critical times and life stages and monitoring relative abundances; these increased environmental flows may also benefit white sturgeon and monitoring provides useful population indices. Other projects like the Yolo Bypass Salmonid Habitat Restoration and Fish Passage Project (“Big Notch”) improve passage and floodplain connectivity. The 2024 State Water Project incidental take permit introduced a White Sturgeon Science Program, entrainment protection measures, and compensatory habitat restoration planning. Nutrient management strategies including updated watershed nutrient National Pollutant Discharge Elimination System wastewater permits seek to reduce HAB risk, and new monitoring programs piloted by CDFW (mark—recapture, salvage protocols) enhance population tracking. While these actions represent meaningful progress, their effectiveness depends on sustained implementation 
                    <PRTPAGE P="45756"/>
                    and adaptive management under changing hydrologic and climatic conditions.
                </P>
                <HD SOURCE="HD2">Current Condition</HD>
                <P>The SFE white sturgeon population has generally declined since the 1980s. Recent population growth estimates suggest population growth is below replacement level (&lt;1), and that under current conditions the population would likely continue to decline (Blackburn et al. 2019, entire). In recent decades, the SFE white sturgeon population was overexploited, and at times harvest substantially exceeded what are believed to be sustainable rates (5-10 percent) (Beamesderfer and Farr 1997, p. 411; Blackburn et al. 2019, p. 898). Additionally, the 2022 HAB resulted in significant adult mortality, and reoccurrence of such HABs may continue to be a threat in the near-term. Successful juvenile recruitment appears to be largely limited to wet years (which create ideal outflows for spawning). However, a general pattern of decreasing recruitment in wet years has been observed in recent years. This emerging pattern may be the result of decreased spawning stock resulting from previous overharvest of mature fish or could also be indicative of reduced survival of young-life stages from degraded environmental conditions.</P>
                <P>In 2024, the State of California revised their regulations and changed the SFE white sturgeon fishery to catch and release only (T14 CCR § 5.80). Reduced adult mortality from fishing pressure provides some opportunity for the population to rebound.</P>
                <P>Redundancy is likely more limited than it was historically, prior to construction of major dams, which limited the species range and reduced available spawning habitat as the SFE white sturgeon can no longer move beyond the Shasta Dam on the Sacramento River or beyond the Friant Dam on the San Joaquin River. It appears most of the spawning occurs in a limited reach of the Sacramento River, which may make the SFE population vulnerable to habitat alterations in this area. Despite confirmed spawning in both the Sacramento and San Joaquin rivers, the SFE population appears to be a single intermixed population without genetic substructure. The population appears to have reasonable genetic diversity, and polyploidy (the heritable condition in which an organism's cells contain more than two complete sets of chromosomes) may aid in preservation of such diversity. However, because the population appears to be a singular genetic unit, overall representation is likely limited.</P>
                <HD SOURCE="HD2">Future Condition</HD>
                <P>We analyzed two plausible future scenarios. We projected these scenarios out to 2150, because this timeframe is biologically meaningful to the species and we can predict changes to resiliency, representation, and redundancy from influences on viability. Future projections out to 2150 is a biologically meaningful timeframe because it captures approximately 5 generations and allows us to observe how the modeled variables affect the population over time, while having high confidence in the species' response to the threats. The two future scenarios represented an upper and lower limit that captured the plausible range of future conditions for the SFE white sturgeon. The upper limit plausible scenario predicted a modest increase in abundance over time and a 0 percent probability of quasi-extinction (population decline to such low numbers that it is unlikely to recover, even though some individuals still persist), whereas the lower limit plausible scenario predicted a 60 percent probability of quasi-extinction of the population by the year 2150. There is a high degree of uncertainty associated with both scenarios, and a population decline is still a potential outcome in the upper limit scenario.</P>
                <P>Even at upper limit plausible parameter values, which resemble current conditions, the population dynamics were still associated with high uncertainty. Population stability, however, did appear to be the more likely outcome in this scenario. Predicted abundances were relatively more sensitive to HAB parameters, compared to fishing mortality or recruitment success probability, if other conditions were poor.</P>
                <P>The population appears to be resilient to any single threat modeled in isolation, but when threats co-occur, resiliency declines. Neither reduced recruitment, high fishing mortality, high HAB mortality, or high HAB frequency alone resulted in quasi-extinction, although population declines were predicted in some of these scenarios. However, when multiple threats affected the population, abundance quickly decreased and the population reached quasi-extinction by year 2150. In the lower limit future scenario, outflow is predicted to decrease between March and July (Knowles et al. 2018, entire; Service 2024, pp. 27, 183), which will likely negatively impact recruitment (Gingras et al. 2014, slide 16). The level of fishing mortality is difficult to project as it is tied to political and management decisions that are also difficult to predict. However, there is public pressure to reopen the fishery to some level of harvest. It is also possible that winter and spring outflow will be further reduced by construction of new water storage and transport systems, thereby negatively impacting juvenile recruitment, and operation of these facilities may increase entrainment mortality. In our model, the population showed low resilience when two or more threats were impacting the population. Though there is variability and uncertainty in how each individual threat will impact the SFE white sturgeon in the future, considering all the future threats together suggest the population likely possesses low resilience to worsening conditions.</P>
                <P>Precipitation patterns are anticipated to shift such that more precipitation is expected to occur as rainfall and less as snow. Rain on snow events are also anticipated to increase, ultimately resulting in a hydrograph that peaks earlier in the year and a descending limb that may drop off faster. Historically, peak flow typically occurred between February and March which coincides with peak white sturgeon spawning in March in the Sacramento River (Arroyo-Esquivel et al. 2026, p. 14). We expect the frequency of years in which mean March-July outflow exceeds 37,000 cubic feet per second, which is associated with successful recruitment, to decrease. We anticipate this will negatively affect the number of years in which we observe successful recruitment in the future. Current redundancy of the SFE white sturgeon population has likely declined from historical levels due to the construction of fish barriers in the San Joaquin and Sacramento Rivers, which have reduced access to upstream spawning reaches and consequently narrowed the population's overall distribution. Future redundancy is expected to remain similar because no new on-channel reservoirs are planned and the population will continue to occupy both river systems and the broader San Francisco Estuary, where wide distribution and varied habitat use offer some protection against catastrophic events. While HAB events may become more frequent and represent a relatively novel source of mortality, their impact will depend heavily on the population's abundance at the time; if numbers decline substantially due to other threats or environmental variability, a large-scale mortality event could become significantly more detrimental to the population's long-term redundancy.</P>
                <P>
                    The wide distribution and high mobility of white sturgeon in the San 
                    <PRTPAGE P="45757"/>
                    Francisco estuary provides a level of redundancy that allows some protection from potential catastrophic events. SFE white sturgeon are typically present from the lower bays up into the lower portions of the Sacramento and San Joaquin Rivers, and during spawning their distribution extends further upstream in these rivers. Any local catastrophic event, such as a chemical or oil spill, would most likely only affect a portion of the population. However, such events would be more impactful if they occurred in certain locations and at certain times of year. White sturgeon density can be high in the Delta (upstream of the confluence of the Sacramento and San Joaquin Rivers) in the fall and winter, so a catastrophic event in this region could impact a significant proportion of the population. However, the Delta is a large and complex system composed of numerous channels and sloughs, which may provide some protection for individuals not in the immediate vicinity. The high mobility of SFE white sturgeon may likewise allow individuals to reduce exposure or avoid hazardous areas.
                </P>
                <P>A catastrophic event such as a chemical or oil spill in or above spawning habitat on the Sacramento River during spawning season could also be detrimental. During spawning, a proportion of reproductive adults can be present in spawning habitat in the Sacramento River, but due to spawning periodicity not all adults are present. However, the adult population could be substantially harmed if a chemical or oil spill occurred. Adult mortality resulting from such an event would reduce spawning stock and future egg supply, potentially impacting future resiliency. Incubating eggs and larvae present would also likely experience mortality. However, failed recruitment is common in this population so these losses would likely be manageable. While such events would be detrimental to the population and may impact future resiliency, it seems unlikely they would directly lead to rangewide extirpation.</P>
                <P>The SFE white sturgeon population is a single genetically intermixed population. Although the population is widely distributed throughout the SFE and is known to spawn in both the Sacramento and San Joaquin Rivers, there does not appear to be any genetic substructure within the population. Because white sturgeon are polyploid, they may be able to retain a greater amount of genetic diversity at lower population numbers compared to other diploid species. There may be an abundance threshold, below which deleterious effects become more prevalent, although the abundance at which this may occur is unknown.</P>
                <P>Elevated or pulse flows appear to be a spawning cue for the SFE white sturgeon population (Kohlhorst et al. 1991, p. 289; Schaffter 1997, pp. 12-13; Fish 2010, p. 81; Klimley et al. 2015, p. 13). It is feasible the population could shift more spawning effort to earlier in the year if earlier elevated flows act as an adequate spawning cue. However, there may be other cues used for spawning such as temperature or daylength, which could pose a challenge to the population aligning spawning with peak or elevated flows as they historically have. SFE white sturgeon appear to have a somewhat protracted spawning season of February through June (Heublein et al. 2017, p. 1), suggesting some individuals in the population spawn earlier in the year. The presence of earlier spawning in the system suggests the population may have the adaptive capacity to shift spawning effort earlier to better align with prevailing hydrology. However, ultimately the population's ability to adapt and respond to changing conditions is uncertain.</P>
                <P>We also anticipate that there may be an increase the water temperatures, which could impact egg and larval survival. Water temperatures in Sacramento River spawning habitats are predicted to more commonly exceed optimal incubation and rearing temperatures (13.5-16 degrees Celsius (°C); 56.3-60.8 degrees Fahrenheit (F)) and occasionally exceed lethal temperatures (20 °C; 68 °F), particularly in late spring (DWR 2013, pp. 141-142). Shifting spawning earlier in the year may help avoid the negative impacts of warmer late spring water temperatures. As discussed above, some individuals appear to spawn earlier in the year, suggesting the population may have the adaptive capacity to avoid sub-optimal or lethal incubation and rearing temperatures. Jackson et al. (2016, pp. 176-177) collected viable eggs in the San Joaquin River when temperatures exceeded 20 °C and did not note any deformities. Although the eventual fate of these eggs if left undisturbed is unknown, this observation may suggest some tolerance of higher temperatures is present in the population.</P>
                <P>The presence of HABs in the bays and cyanobacteria HABs in the Delta may require behavioral adaptations to avoid short-term poor water quality in local or regional areas. Relatively high mobility and evidence of different habitat use patterns between individuals may provide adaptive capacity by allowing white sturgeon to shift habitat use patterns and adapt to changing conditions. However, a large (estimated greater than 50 percent) portion of the population was not capable of escaping poor conditions created by the 2022 HAB. Therefore, whether the SFE white sturgeon can respond or adapt to changing conditions depends on the magnitude and timing of the change. And whether or not they will be able to adapt to the presence of HABs remains uncertain.</P>
                <P>SFE white sturgeon may possess the capacity to adapt to future changing conditions. The primary adaptive response will likely require behavioral adaptations to shift habitat use away from degraded areas and to shift reproductive timing to align with more favorable spawning and rearing conditions. To some extent, some individuals exhibit behavior or characteristics that may mitigate some of the predicted negative impacts referenced above.</P>
                <HD SOURCE="HD3">Conclusion</HD>
                <P>
                    The SFE white sturgeon Species Status Assessment report provides additional details on the viability of the SFE white sturgeon (Service 2026). On the basis of the best scientific and commercial information available, we find that the petitioned action to list the SFE DPS of white sturgeon under the Act is warranted. We will make a determination on the status of the species as threatened or endangered when we complete a proposed listing determination. When we complete a proposed listing determination, we will examine whether the species may be endangered or threatened throughout all of its range or whether the species may be endangered or threatened in a significant portion of its range. However, an immediate proposal of a regulation implementing this action is precluded by work on higher priority listing actions and final listing determinations. This work includes all the actions listed in the National Listing Workplan (Workplan) discussed below under 
                    <E T="03">Preclusion</E>
                     and in the tables below under 
                    <E T="03">Expeditious Progress,</E>
                     as well as other actions at various stages of completion, such as 90-day findings for new petitions.
                </P>
                <HD SOURCE="HD1">Preclusion and Expeditious Progress</HD>
                <P>
                    To make a finding that a particular action is warranted but precluded, the Service must make two determinations. First, that the immediate proposal and timely promulgation of a final regulation is precluded by pending proposals to determine whether any species is endangered or threatened. Secondly, that expeditious progress is being made to add qualified species to 
                    <PRTPAGE P="45758"/>
                    either of the Lists and to remove species from the Lists (16 U.S.C. 1533(b)(3)(B)(iii)).
                </P>
                <HD SOURCE="HD2">Preclusion</HD>
                <P>A listing proposal is precluded if the Service does not have sufficient resources available to complete the proposal, because there are competing demands for those resources, and the relative priority of those competing demands is higher. Thus, in any given fiscal year (FY), multiple factors dictate whether it will be possible to undertake work on a proposed listing regulation or whether promulgation of such a proposal is precluded by higher priority listing actions, including: (1) the amount of resources available for completing the listing function; (2) the estimated cost of completing the proposed listing regulation; and (3) the Service's workload, along with the Service's prioritization of the proposed listing regulation in relation to other actions in its workload.</P>
                <HD SOURCE="HD3">Available Resources</HD>
                <P>
                    The resources available for listing actions are determined through the annual Congressional appropriations process. In FY 1998 and for each fiscal year since then, Congress has placed a statutory cap on funds that may be expended for the Listing Program (spending cap). This spending cap was designed to prevent the listing function from depleting funds needed for other functions under the Act (
                    <E T="03">e.g.,</E>
                     recovery functions, such as removing species from the Lists) or for other Service programs (see House Report 105-163, 105th Congress, 1st Session, July 1, 1997). The funds within the spending cap are available to support work involving the following listing actions: proposed and final rules to add species to the Lists or to change the status of species from threatened to endangered; 90-day and 12-month findings on petitions to add species to the Lists or to change the status of a species from threatened to endangered; annual “resubmitted” petition findings on prior warranted-but-precluded petition findings as required under section 4(b)(3)(C)(i) of the Act; critical habitat petition findings; proposed rules designating critical habitat or final critical habitat determinations; and litigation-related, administrative, and program-management functions (including preparing and allocating budgets, responding to Congressional and public inquiries, and conducting public outreach regarding listing and critical habitat).
                </P>
                <P>For more than two decades the size and cost of the workload in these categories of actions have far exceeded the amount of funding available to the Service under the spending cap for completing listing and critical habitat actions under the Act. Since we cannot exceed the spending cap without violating the Anti-Deficiency Act (31 U.S.C. 1341(a)(1)(A)), each year we have been compelled to determine that work on at least some actions was precluded by work on higher priority actions. We make our determinations of preclusion on a nationwide basis to ensure that the species most in need of listing will be addressed first, and because we allocate our listing budget on a nationwide basis. Through the spending cap and the amount of funds needed to complete court-mandated actions within the cap, Congress and the courts have in effect determined the amount of money remaining (after completing court-mandated actions) for listing activities nationwide. Therefore, the funds that remain within the listing cap, after paying for work needed to comply with court orders or court-approved settlement agreements, set the framework within which we make our determinations of preclusion and expeditious progress.</P>
                <P>For FY 2025, through the Full-Year Continuing Appropriations and Extensions Act, 2025 (Pub. L. 119-4, March 15, 2025), Congress appropriated the Service $22,000,000 under a consolidated cap for all domestic and foreign listing work, including status assessments, listings, domestic critical habitat determinations, and related activities. For FY 2026, through the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026 (Pub. L. 119-74, January 23, 2026), Congress appropriated $14,000,000 for all domestic and foreign listing work (a decrease of 36 percent). The amount of funding Congress will appropriate in future years is uncertain.</P>
                <HD SOURCE="HD3">Costs of Listing Actions</HD>
                <P>The work involved in preparing various listing documents can be extensive, and may include, but is not limited to: gathering and assessing the best scientific and commercial data available and conducting analyses used as the basis for our decisions; writing and publishing documents; and obtaining, reviewing, and evaluating public comments and peer-review comments on proposed rules and incorporating relevant information from those comments into final rules. The number of listing actions that we can undertake in a given year also is influenced by the complexity of those listing actions; that is, more complex actions generally are more costly. Our practice of proposing to designate critical habitat concurrent with listing species requires additional coordination and an analysis of the economic impacts of the designation and thus adds to the complexity and cost of our work. Since completing all of the work for outstanding listing and critical habitat actions has for so long required more funding than has been available within the spending cap, the Service has developed several ways to determine the relative priorities of the actions within its workload to identify the work it can complete with the funding it has available for listing and critical habitat actions each year.</P>
                <HD SOURCE="HD3">Prioritizing Listing Actions</HD>
                <P>The Service's Listing Program workload is broadly composed of four types of actions, which the Service prioritizes as follows: (1) compliance with court orders and court-approved settlement agreements requiring that petition findings or listing or critical habitat determinations be completed by a specific date; (2) essential litigation-related, administrative, and listing program-management functions; (3) section 4 (of the Act) listing and critical habitat actions with absolute statutory deadlines; and (4) section 4 listing actions that do not have absolute statutory deadlines.</P>
                <P>
                    In previous years, the Service received many new petitions, including multiple petitions to list numerous species—a single petition sought to list 404 domestic species. The emphasis that petitioners placed on seeking listing for hundreds of species at a time through the petition process significantly increased the number of actions within the third category of our workload, actions that have absolute statutory deadlines for making findings on those petitions. In addition, the necessity of dedicating all of the Listing Program funding towards determining the status of 251 candidate species and complying with other court-ordered requirements between 2011 and 2016 added to the number of petition findings awaiting action. Because we are not able to work on all of these at once, the Service's most recent effort to prioritize its workload focuses on addressing the backlog in petition findings that has resulted from the influx of large multispecies petitions and the 5-year period in which the Service was compelled to suspend making 12-month findings for most of those petitions. The number of petitions that are awaiting status reviews and accompanying 12-month findings illustrates the considerable extent of this backlog. As 
                    <PRTPAGE P="45759"/>
                    a result of the outstanding petitions to list hundreds of species and our efforts to make initial petition findings within 90 days of receiving the petition to the maximum extent practicable, we had 365 12-month petition findings for domestic and foreign species at the beginning of FY 2026 we had yet to initiate or complete.
                </P>
                <P>To determine the relative priorities of the outstanding 12-month petition findings, the Service finalized a prioritization methodology (methodology) (81 FR 49248; July 27, 2016) after providing the public with notice and an opportunity to comment on the draft methodology (81 FR 2229; January 15, 2016). Under the methodology, we assign each 12-month finding to one of five priority bins: (1) the species is critically imperiled, (2) strong data are already available about the status of the species, (3) new science is underway that would inform key uncertainties about the status of the species, (4) conservation efforts are in development or underway and likely to address the status of the species, or (5) the available data on the species are limited. As a general rule, 12-month findings with a lower bin number have a higher priority than, and are scheduled before, 12-month findings with a higher bin number. However, we make some limited exceptions—for example, we may schedule a lower priority finding earlier if batching it with a higher priority finding would generate efficiencies. We may also consider if there are any special circumstances whereby an action should be bumped up (or down) in scheduling. For instance, we may diverge from priority order when the current highest priorities are clustered in a geographic area, such that our scientific expertise at the field office level is fully occupied with their existing workload. We recognize that the geographic distribution of our scientific expertise will in some cases require us to balance workload across geographic areas. Since before Congress first established the spending cap for the Listing Program in 1998, the Listing Program workload has required considerably more resources than the amount of funds Congress has allowed. Therefore, it is important that we be as efficient as possible in our listing process.</P>
                <P>
                    In 2025, we assigned the 12-month finding for the SFE white sturgeon to bin 3, given long-term ecological monitoring that was taking place in the same area as the SFE white sturgeon range. We determined that these efforts could likely provide information for key uncertainties related to the species' viability. However, in order to comply with a court order in 
                    <E T="03">S.F. Baykeeper, et al.</E>
                     v. 
                    <E T="03">United States Fish &amp; Wildlife Serv., et al.,</E>
                     No. 25-cv-01360-LJC, 2025 U.S. Dist. LEXIS 171897 (N.D. Cal. Sep. 3, 2025), we are completing the 12-month finding for SFE white sturgeon before other higher priority actions in bin 2.
                </P>
                <P>After finalizing the prioritization methodology, we then applied that methodology to develop a multiyear workplan for completing the outstanding status assessments and accompanying 12-month findings. The purpose of the Workplan is to provide transparency and predictability to the public about when we anticipate completing specific 12-month findings for domestic species while allowing for flexibility to update the Workplan when new information changes the priorities. In May 2024, the Service released a Workplan for addressing the Act's domestic listing and critical habitat decisions over the subsequent 5 years.</P>
                <P>
                    Tables 1 and 2 under 
                    <E T="03">Expeditious Progress,</E>
                     below, identify the higher priority listing actions that we completed through FY 2026 (May 31, 2026), as well as those we have been working on in FY 2026 but have not yet completed. In addition to the actions scheduled in the Workplan, the overall Listing Program workload also includes the development and revision of listing regulations, or to address the repercussions of any new court decisions, as well as proposed and final critical habitat designations or revisions for species that have already been listed. These higher priority actions preclude immediate proposal of a regulation implementing the SFE white sturgeon population petitioned action in FY 2026.
                </P>
                <HD SOURCE="HD2">Expeditious Progress</HD>
                <P>As explained above, a determination that listing is warranted but precluded must also demonstrate that expeditious progress is being made to add and remove qualified species to and from the Lists. Please note that, in the CFR, the “Lists” are grouped as one list of endangered and threatened wildlife (50 CFR 17.11(h)) and one list of endangered and threatened plants (50 CFR 17.12(h)). However, the “Lists” referred to in the Act mean one list of endangered species (wildlife and plants) and one list of threatened species (wildlife and plants). Therefore, under the Act, expeditious progress includes actions to reclassify species—either removing them from the list of threatened species and adding them to the list of endangered species or removing them from the list of endangered species and adding them to the list of threatened species.</P>
                <P>As with our “precluded” finding, the evaluation of whether expeditious progress is being made is a function of the resources available and the competing demands for those funds. As discussed earlier, the FY 2025 appropriations law included a spending cap of $22,000,000 for listing activities, and the FY 2026 appropriations law included a spending cap of $14,000,000 for listing activities, which was a significant decrease in funding from FY 2025. Though our competing demands for resources has not changed substantially, our resources available have substantially declined. As discussed below, given the limited resources available for listing, the competing demands for those funds, and the completed work cataloged in the tables below, we find that we are making expeditious progress in adding qualified species to the Lists.</P>
                <P>
                    The work of the Service's domestic listing program includes all three of the steps necessary for adding species to the Lists: (1) identifying species that 
                    <E T="03">may</E>
                     warrant listing (90-day petition findings); (2) undertaking an evaluation of the best available scientific data about those species and the threats they face to determine whether or not listing is warranted (a status review and accompanying 12-month finding); and (3) adding qualified species to the Lists (by publishing proposed and final listing rules). We explain in more detail below how we are making expeditious progress in all three of the steps necessary for adding qualified species to the Lists (identifying, evaluating, and adding species). Subsequent to discussing our expeditious progress in adding qualified species to the List, we explain our expeditious progress in removing from the Lists species that no longer require the protections of the Act.
                </P>
                <P>First, we are making expeditious progress in identifying species that may warrant listing. In FY 2025 and FY 2026 (as of September 30, 2025), we completed 90-day findings on petitions to list 36 species.</P>
                <P>
                    Second, we are making expeditious progress in evaluating the best scientific and commercial data available about species and threats they face (status reviews) to determine whether or not listing is warranted. Table 1 shows work that we completed and table 2 shows ongoing work at the time of this publication. In FY 2025 and FY 2026 (as of May 31, 2026), we completed 12-month findings for 39 domestic species and 12 foreign species. In addition, we initiated 12-month findings for 50 domestic species and 12 foreign species. 
                    <PRTPAGE P="45760"/>
                    Although we did not complete those actions during FY 2025, we made expeditious progress towards doing so by initiating and making progress on the status reviews to determine whether adding the species to the Lists is warranted.
                </P>
                <P>Third, we are making expeditious progress in adding qualified species to the Lists (table 1). In FY 2025 and FY 2026 (as of May 31, 2026), we published final listing rules for three domestic species and three foreign species, including final critical habitat designations for two of those domestic species and final protective regulations under section 4(d) of the Act for the other. In addition, we published proposed rules to list an additional 18 domestic species and 11 foreign species (including concurrent proposed critical habitat designations for 6 species and concurrent protective regulations under the Act's section 4(d) for 8 domestic species and 5 foreign species).</P>
                <P>As required by the Act, we are also making expeditious progress in removing species from the Lists that no longer require the protections of the Act. Specifically, we are making expeditious progress in removing (delisting) domestic species, as well as reclassifying endangered species to threatened species status (downlisting). This work is being completed under the recovery program in light of the resources available for recovery actions, which are funded through the recovery line item in the budget of the Endangered Species Program. Work on recovery actions does count towards our assessment of making expeditious progress because the Act states that expeditious progress includes both adding qualified species to, and removing qualified species from, the Lists of Endangered and Threatened Wildlife and Plants. During FY 2025 and FY 2026, we finalized downlisting rules for 2 domestic species with concurrent final protective regulations under the Act's section 4(d), finalized delisting rules for 6 domestic species, and proposed delisting rules for 18 domestic species.</P>
                <P>The tables below catalog the Service's progress in FY 2025 and FY 2026 (as of May 31, 2026) as it pertains to our evaluation of making expeditious progress. Table 1 includes completed and published domestic listing actions. Table 2 includes domestic listing actions funded and initiated in previous fiscal years and in FY 2025 that are not yet complete as of May 31, 2026. Table 3 includes completed and published proposed and final downlisting and delisting actions for domestic species.</P>
                <GPOTABLE COLS="4" OPTS="L2,nj,i1" CDEF="xs50,r100,r100,12">
                    <TTITLE>Table 1—Published Domestic and Foreign Listing Actions (Proposed and Final Listing, 12-Month Petition Findings, 90-Day Findings, and Uplisting Rules) in FY 2025 and FY 2026 </TTITLE>
                    <TDESC>[As of May 31, 2026]</TDESC>
                    <BOXHD>
                        <CHED H="1">Publication date</CHED>
                        <CHED H="1">Title</CHED>
                        <CHED H="1">Action(s)</CHED>
                        <CHED H="1">
                            <E T="02">Federal</E>
                            <LI>
                                <E T="02">Register</E>
                            </LI>
                            <LI>citation</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">10/1/2024</ENT>
                        <ENT>Threatened Species Status With Section 4(d) Rule for Bethany Beach Firefly</ENT>
                        <ENT>Proposed Listing—Threatened with a Section 4(d) Rule</ENT>
                        <ENT>89 FR 79857</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10/1/2024</ENT>
                        <ENT>12-Month Not-Warranted Finding for the Las Vegas Bearpoppy</ENT>
                        <ENT>12-month Petition Finding</ENT>
                        <ENT>89 FR 79880</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10/8/2024</ENT>
                        <ENT>90-Day Findings for 8 Species</ENT>
                        <ENT>90-day Petition Findings</ENT>
                        <ENT>89 FR 81388</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10/30/2024</ENT>
                        <ENT>Endangered Species Status for Ocmulgee Skullcap and Designation of Critical Habitat</ENT>
                        <ENT>Final Listing—Endangered with Critical Habitat</ENT>
                        <ENT>89 FR 86670</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">11/21/2024</ENT>
                        <ENT>Listing the Giraffe</ENT>
                        <ENT>Proposed Listing—Endangered; Proposed Listing—Threatened with a Section 4(d) Rule; 12-month Petition Findings</ENT>
                        <ENT>89 FR 92524</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">11/22/2024</ENT>
                        <ENT>Threatened Species Status With Section 4(d) Rule for Pecos Pupfish and Designation of Critical Habitat</ENT>
                        <ENT>Proposed Listing—Threatened with a Section 4(d) Rule and Critical Habitat</ENT>
                        <ENT>89 FR 92744</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/5/2024</ENT>
                        <ENT>Endangered Species Status for Swale Paintbrush</ENT>
                        <ENT>Final Listing—Endangered</ENT>
                        <ENT>89 FR 96602</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/10/2024</ENT>
                        <ENT>Endangered Species Status for the Peñasco Least Chipmunk and Designation of Critical Habitat</ENT>
                        <ENT>Final Listing—Endangered with Critical Habitat</ENT>
                        <ENT>89 FR 99656</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/10/2024</ENT>
                        <ENT>Endangered Species Status for the Fluminense Swallowtail Butterfly, Harris' Mimic Swallowtail Butterfly, and Hahnel's Amazonian Swallowtail Butterfly</ENT>
                        <ENT>Final Listing—Endangered</ENT>
                        <ENT>89 FR 99129</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/10/2024</ENT>
                        <ENT>12-Month Not-Warranted Finding for the Rio Grande Cutthroat Trout</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>89 FR 99207</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/12/2024</ENT>
                        <ENT>Threatened Species Status With Section 4(d) Rule for Monarch Butterfly and Designation of Critical Habitat</ENT>
                        <ENT>Proposed Listing—Threatened with a Section 4(d) Rule and Critical Habitat</ENT>
                        <ENT>89 FR 100662</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/13/2024</ENT>
                        <ENT>Endangered Species Status for Eastern Hellbender</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>89 FR 100934</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/17/2024</ENT>
                        <ENT>Endangered Species Status for Suckley's Cuckoo Bumble Bee</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>89 FR 102074</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/19/2024</ENT>
                        <ENT>Endangered Species Status for Puerto Rican Skink, Lesser Virgin Islands Skink, and Virgin Islands Bronze Skink and Designation of Critical Habitat; Threatened Species Status With Section 4(d) Rule for Culebra Skink and Designation of Critical Habitat; Not Warranted Species Status for Mona Skink, Greater Virgin Islands Skink, Greater Saint Croix Skink, and Lesser Saint Croix Skink</ENT>
                        <ENT>Proposed Listing—Endangered; Proposed Listing—Threatened with a Section 4(d) Rule; 12-month Petition Finding</ENT>
                        <ENT>89 FR 103938</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/26/2024</ENT>
                        <ENT>Endangered Species Status for the Blue Tree Monitor</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>89 FR 104952</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/8/2025</ENT>
                        <ENT>90-Day Finding on Two Petitions for Gray Wolf</ENT>
                        <ENT>90-day Petition Findings</ENT>
                        <ENT>90 FR 1419</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/8/2025</ENT>
                        <ENT>Endangered Species Status for the Bleached Sandhill Skipper</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>90 FR 1421</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/14/2025</ENT>
                        <ENT>Threatened Status for the Florida Manatee and Endangered Status for the Antillean Manatee</ENT>
                        <ENT>Proposed Listing—Endangered; Proposed Listing—Threatened with a Section 4(d) Rule</ENT>
                        <ENT>90 FR 3131</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="45761"/>
                        <ENT I="01">1/15/2025</ENT>
                        <ENT>12-Month Finding for the Greater Yellowstone Ecosystem of the Grizzly Bear in the Lower-48 States</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 3763</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/15/2025</ENT>
                        <ENT>12-Month Finding for the Northern Continental Divide Ecosystem of the Grizzly Bear in the Lower-48 States</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 3783</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/16/2025</ENT>
                        <ENT>Threatened Species Status With Section 4(d) Rule for Clear Lake Hitch</ENT>
                        <ENT>Proposed Listing—Threatened with a Section 4(d) Rule</ENT>
                        <ENT>90 FR 4916</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/21/2025</ENT>
                        <ENT>90-Day Findings for Eight Species</ENT>
                        <ENT>90-day Petition Findings</ENT>
                        <ENT>90 FR 7038</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/21/2025</ENT>
                        <ENT>Endangered Species Status for Big Red Sage</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>90 FR 7043</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3/11/2025</ENT>
                        <ENT>12-Month Not-Warranted Finding for the Spinytail Crayfish</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 11696</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5/21/2025</ENT>
                        <ENT>Endangered Species Status for Fish Lake Valley Tui Chub</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>90 FR 21720</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6/5/2025</ENT>
                        <ENT>Endangered Species Status for Ghost Orchid</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>90 FR 23869</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6/10/2025</ENT>
                        <ENT>Two Species Not Warranted for Listing as Endangered or Threatened Species</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 24378</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6/17/2025</ENT>
                        <ENT>Endangered Species Status for Seven Species of Pangolin</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>90 FR 25564</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6/17/2025</ENT>
                        <ENT>Three Species Not Warranted for Listing as Endangered or Threatened Species</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 25559</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7/1/2025</ENT>
                        <ENT>Endangered Species Status for Barrens Darter</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>90 FR 28701</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8/14/2025</ENT>
                        <ENT>Threatened Species Status With Section 4(d) Rule for the Borneo Earless Monitor</ENT>
                        <ENT>Proposed Listing—Threatened with a Section 4(d) Rule</ENT>
                        <ENT>90 FR 39161</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8/25/2025</ENT>
                        <ENT>12-Month Not-Warranted Finding for the Northern California-Southern Oregon Distinct Population Segment of Fisher</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 41355</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8/25/2025</ENT>
                        <ENT>90-Day Findings for Nine Species</ENT>
                        <ENT>90-day Petition Findings</ENT>
                        <ENT>90 FR 41359</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8/29/2025</ENT>
                        <ENT>Threatened Species Status With Section 4(d) Rule for Southern Hognose Snake</ENT>
                        <ENT>Proposed Listing—Threatened with a Section 4(d) Rule</ENT>
                        <ENT>90 FR 42151</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">9/4/2025</ENT>
                        <ENT>Five Species Not Warranted for Listing as Endangered or Threatened Species</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 42725</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">11/18/2025</ENT>
                        <ENT>12-Month Not Warranted Finding for the Okinawa Woodpecker</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>90 FR 51632</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3/24/26</ENT>
                        <ENT>Designation of Critical Habitat for 22 Species in the Commonwealth of the Northern Mariana Islands and the Territory of Guam</ENT>
                        <ENT>Proposed Critical Habitat Designation</ENT>
                        <ENT>91 FR 14074</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4/17/26</ENT>
                        <ENT>Endangered Species Status for Jamaican Swallowtail</ENT>
                        <ENT>Proposed Listing—Endangered</ENT>
                        <ENT>91 FR 20610</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4/27/2026</ENT>
                        <ENT>Designation of Critical Habitat for the Rayed Bean, Sheepnose, Snuffbox, and Spectaclecase Mussels</ENT>
                        <ENT>Final Critical Habitat Designations</ENT>
                        <ENT>91 FR 22590</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5/4/2026</ENT>
                        <ENT>12-Month Not-Warranted Finding for the Temblor Legless Lizard</ENT>
                        <ENT>12-month Petition Findings</ENT>
                        <ENT>91 FR 23934</ENT>
                    </ROW>
                    <TNOTE>
                        <E T="02">Note:</E>
                         Batched 12-month findings may include findings regarding listing and delisting petitions. The total number of 12-month findings reported in this assessment of preclusion and expeditious progress pertains to listing petitions only.
                    </TNOTE>
                </GPOTABLE>
                <GPOTABLE COLS="2" OPTS="L2,nj,i1" CDEF="s150,r50">
                    <TTITLE>Table 2—Domestic and Foreign Listing Actions (Proposed and Final Listings and Uplistings) Initiated in Previous FYs That Were Not Published as of May 31, 2026</TTITLE>
                    <BOXHD>
                        <CHED H="1">Species</CHED>
                        <CHED H="1">Action</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Amur sturgeon</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Beautiful parachute spider</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Big Bar hesperian</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bi-state sage grouse</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Blanding's turtle</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Blueridge springfly</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brawleys Fork crayfish</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">California spotted owl (Coastal-Southern California DPS)</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">California spotted owl (Sierra Nevada DPS)</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Cascade Caverns salamander</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Cascade torrent salamander</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Chesapeake logperch</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Chisos Mountain crested coral-root</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Ciliate-leaf tickseed</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Coosa creekshell</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Cumberland moccasinshell</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Delaware County cave crayfish</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Dukes' skipper</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="45762"/>
                        <ENT I="01">Eastern diamondback rattlesnake</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Ferris's copper</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Flat-tailed tortoise</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Florida Keys mole skink</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Florida pine snake</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grand Wash springsnail</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hardin crayfish</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Kern Canyon slender salamander</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Key ring-neck snake</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Kingman springsnail</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Large-flowered Barbara's-buttons</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Lobed roachfly</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Longnose darter</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Long-tailed chinchilla</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Louisiana pigtoe</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Lowland loosestrife</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Miami cave crayfish</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Mysore ornamental tarantula</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Navasota false foxglove</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Northern bog lemming</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Oklahoma cave crayfish</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Palatka skipper (or Klot's skipper)</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Peacock parachute spider</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Peppered shiner</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Persian sturgeon</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Piebald madtom</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Quitobaquito tryonia</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Rameshwaram parachute spider</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Redslate ornamental tarantula</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Relictual slender salamander</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Rim rock crown snake</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Robust redhorse</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Russian sturgeon</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Salamander mussel</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Saltmarsh sparrow</ENT>
                        <ENT>Discretionary proposed listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Sanibel Island rice rat</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shasta chaparral</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shasta hesperian</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shasta sideband</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shasta snow-wreath</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Ship sturgeon</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Short-tailed chinchilla</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Siberian sturgeon</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Silverspot butterfly</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Southern elktoe</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Spider tortoise</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Stellate sturgeon</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Streamside salamander</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tamaulipan spot-tailed earless lizard</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tennessee clubshell</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tennessee pigtoe</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Texas heelsplitter</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Texas kangaroo rat</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Texas salamander</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Texas trillium</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tharp's bluestar</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Threecorner milkvetch</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Toothless blindcat</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tri-colored bat</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">[Unnamed] brush-pea</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Virginia stone</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Western bumble bee</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Western chicken turtle</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Western ridged mussel</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">White Sands pupfish</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Widemouth blindcat</ENT>
                        <ENT>Final listing determination.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Wintu sideband</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Wonderful parachute spider</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Wood turtle</ENT>
                        <ENT>12-month finding.</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="45763"/>
                <GPOTABLE COLS="4" OPTS="L2,nj,i1" CDEF="xs50,r100,r100,12">
                    <TTITLE>Table 3—Published Domestic and Foreign Proposed and Final Downlistings and Delistings in FY 2025 and FY 2026</TTITLE>
                    <TDESC>[As of May 31, 2026]</TDESC>
                    <BOXHD>
                        <CHED H="1">Publication date</CHED>
                        <CHED H="1">Title</CHED>
                        <CHED H="1">Action(s)</CHED>
                        <CHED H="1">
                            <E T="02">Federal</E>
                            <LI>
                                <E T="02">Register</E>
                            </LI>
                            <LI>citation</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">10/25/2024</ENT>
                        <ENT>Reclassification of the Red-Cockaded Woodpecker From Endangered to Threatened With a Section 4(d) Rule</ENT>
                        <ENT>Final Downlisting—Threatened with a Section 4(d) Rule</ENT>
                        <ENT>89 FR 85294</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10/29/2024</ENT>
                        <ENT>Removing Chipola Slabshell and Fat Threeridge From the Federal List of Endangered and Threatened Wildlife</ENT>
                        <ENT>Proposed Rule—Delisting</ENT>
                        <ENT>89 FR 85909</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12/11/2024</ENT>
                        <ENT>Reclassification of the Rough Popcornflower From Endangered to Threatened With a Section 4(d) Rule</ENT>
                        <ENT>Proposed Rule—Downlisting with Section 4(d) Rule</ENT>
                        <ENT>89 FR 99809</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1/7/2025</ENT>
                        <ENT>Removal of Ute Ladies'-Tresses From the List of Endangered and Threatened Plants</ENT>
                        <ENT>Proposed Rule—Delisting</ENT>
                        <ENT>90 FR 1054</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5/29/2025</ENT>
                        <ENT>Removal of Colorado Hookless Cactus From the List of Endangered and Threatened Plants</ENT>
                        <ENT>Final Rule—Delisting</ENT>
                        <ENT>90 FR 22650</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6/17/2025</ENT>
                        <ENT>Removal of Gila Chub From the List of Endangered and Threatened Wildlife</ENT>
                        <ENT>Proposed Rule—Delisting</ENT>
                        <ENT>90 FR 25552</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7/8/2025</ENT>
                        <ENT>Removal of the Dwarf-flowered Heartleaf From the List of Endangered and Threatened Plants</ENT>
                        <ENT>Final Rule—Delisting</ENT>
                        <ENT>90 FR 30004</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7/22/2025</ENT>
                        <ENT>Removal of Roanoke Logperch From the List of Endangered and Threatened Wildlife</ENT>
                        <ENT>Final Rule—Delisting</ENT>
                        <ENT>90 FR 34372</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8/5/2025</ENT>
                        <ENT>Removal of Virginia Sneezeweed From the List of Endangered and Threatened Plants</ENT>
                        <ENT>Proposed Rule—Delisting</ENT>
                        <ENT>90 FR 37445</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">9/26/2025</ENT>
                        <ENT>Regulations for Eleven Species Treated as Listed Due to Similarity of Appearance</ENT>
                        <ENT>Proposed Rule—Delisting</ENT>
                        <ENT>90 FR 46371</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2/10/26</ENT>
                        <ENT>Removal of the Southeast U.S. Distinct Population Segment of the Wood Stork From the List of Endangered and Threatened Wildlife</ENT>
                        <ENT>Final Rule—Delisting</ENT>
                        <ENT>91 FR 5826</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2/26/2026</ENT>
                        <ENT>Removal of Geocarpon Minimum From the List of Endangered and Threatened Plants</ENT>
                        <ENT>Proposed Rule—Delisting</ENT>
                        <ENT>91 FR 9532</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2/26/2026</ENT>
                        <ENT>Removal of Northern and Southern Distinct Population Segments of the Lesser Prairie-Chicken From the list of Endangered and Threatened Wildlife in Compliance With Court Order</ENT>
                        <ENT>Final Rule—Delisting</ENT>
                        <ENT>91 FR 9474</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4/30/2026</ENT>
                        <ENT>Removal of the North Park Phacelia From the List of Endangered and Threatened Plants</ENT>
                        <ENT>Proposed Rule—Delisting</ENT>
                        <ENT>91 FR 23231</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5/19/2026</ENT>
                        <ENT>Reclassification of the Rough Popcornflower From Endangered to Threatened With a Section 4(d) Rule</ENT>
                        <ENT>Final Rule—Downlisting with Section 4(d) Rule</ENT>
                        <ENT>91 FR 29071</ENT>
                    </ROW>
                </GPOTABLE>
                <P>When a petitioned action is found to be warranted but precluded, the Service is required by the Act to treat the petition as resubmitted on an annual basis until a proposal or withdrawal is published. If the petitioned species is not already listed under the Act, the species becomes a “candidate” and is reviewed annually in the Candidate Notice of Review. The number of candidate species remaining in FY 2025 is the lowest it has been since 1975.</P>
                <P>Another way that we have been expeditious in making progress in adding and removing qualified species to and from the Lists is that we have made our actions as efficient and timely as possible, given the requirements of the Act and regulations and constraints relating to workload and personnel. We are continually seeking ways to streamline processes or achieve economies of scale, such as batching related actions together for publication. Given our severely limited budget for implementing section 4 of the Act, these efforts also contribute toward our expeditious progress in adding and removing qualified species to and from the Lists.</P>
                <P>The SFE white sturgeon will be added to the candidate list, and we will continue to evaluate this species as new information becomes available. Continuing review will determine if a change in status is warranted, including the need to make prompt use of emergency listing procedures.</P>
                <P>
                    A detailed discussion of the basis for this finding can be found in the SFE white sturgeon species assessment form and other supporting documents at 
                    <E T="03">http://www.regulations.gov</E>
                     under docket number FWS-R8-ES-2026-2477 (see 
                    <E T="02">ADDRESSES</E>
                    , above).
                </P>
                <HD SOURCE="HD1">New Information</HD>
                <P>
                    We intend that any proposed listing rule for the SFE white sturgeon will be as accurate as possible. Therefore, we will continue to accept additional information and comments from all concerned governmental agencies, the scientific community, industry, or any other interested party concerning this finding. We request that you submit any new information concerning the taxonomy of, biology of, ecology of, status of, threats to, or conservation actions for the SFE white sturgeon to the person specified under 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    , whenever it becomes available. New information will help us monitor this species and make appropriate decisions about its conservation and status. We encourage all stakeholders to continue cooperative monitoring and conservation efforts.
                </P>
                <HD SOURCE="HD1">References Cited</HD>
                <P>
                    The list of the references cited in the petition finding is available on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     under docket number FWS-R8-ES-2026-2477 and upon request from the 
                    <PRTPAGE P="45764"/>
                    person specified under 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    .
                </P>
                <HD SOURCE="HD1">Authors</HD>
                <P>The primary authors of this document are the staff members of the Fish and Wildlife Service's Species Assessment Team.</P>
                <HD SOURCE="HD1">Authority</HD>
                <P>
                    The authority for this action is section 4 of the Endangered Species Act of 1973, as amended (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <SIG>
                    <NAME>Brian Nesvik,</NAME>
                    <TITLE>Director, U.S. Fish and Wildlife Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14638 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 660</CFR>
                <RIN>RIN 0648-BO46</RIN>
                <SUBJECT>Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; Pacific Coast Groundfish Fishery Management Plan; Amendment 38; 2027-28 Biennial Specifications and Management Measures</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 availability of proposed fishery management plan amendment and associated draft Environmental Assessment (EA); request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS announces that the Pacific Fishery Management Council (Council) submitted amendment 38 to the Pacific Coast Groundfish Fishery Management Plan (Groundfish FMP) to the Secretary of Commerce for review. If approved, amendment 38 would revise the Groundfish FMP to reflect the rebuilt status of yelloweye rockfish and the California stock of quillback rockfish, removing all references to their respective rebuilding plans from the FMP. In accordance with the National Environmental Policy Act (NEPA) of 1969, NMFS also announces the availability of a draft EA that analyzes the potential effects of the action. NMFS requests public comment on the draft EA.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments on amendment 38 must be received on or before Saturday, September 19, 2026.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments on this document, identified by NOAA-NMFS-2026-1354, by the following method:</P>
                    <P>
                        • 
                        <E T="03">Electronic Submission:</E>
                         Submit all electronic public comments via the Federal e-Rulemaking Portal. Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and enter NOAA-NMFS-2026-1354 in the Search box. Click on the “Comment” icon, complete the required fields, and enter or attach your comments.
                    </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>
                        Electronic copies of proposed amendment 38 may be obtained from 
                        <E T="03">https://www.regulations.gov</E>
                         and the NMFS West Coast Region website at 
                        <E T="03">https://www.fisheries.noaa.gov/region/west-coast.</E>
                         The draft integrated analysis, including an EA that addresses the NEPA, as well as analyses that address Executive Order 12866, the Regulatory Flexibility Act, and the statutory requirements of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) (collectively referred to as “the Analysis”), may be obtained from the Groundfish Actions NEPA website at 
                        <E T="03">https://www.fisheries.noaa.gov/west-coast/laws-policies/groundfish-actions-nepa-documents.</E>
                         For access to the stock assessment documents referenced in this notice, please visit the Pacific Fishery Management Council website at 
                        <E T="03">https://www.pcouncil.org/.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Meghan Roberts, 206-526-4048, 
                        <E T="03">meghan.roberts@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    NMFS manages the Federal groundfish fisheries in the exclusive economic zone seaward of Washington, Oregon, and California under the Groundfish FMP. The Council prepared and NMFS implemented the Groundfish FMP under the authority of the Magnuson-Stevens Act, 16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                     and by regulations at 50 CFR parts 600 and 660. The Magnuson-Stevens Act requires that each regional fishery management council submit any FMP or plan amendment it prepares to NMFS for review and approval, disapproval, or partial approval by the Secretary of Commerce. The Magnuson-Stevens Act also requires that NMFS, upon receiving an FMP or amendment, immediately publish a notice that the FMP or amendment is available for public review and comment. This notice announces that proposed amendment 38 to the Groundfish FMP is available for public review and comment. NMFS will consider the public comments received during the comment period described above in determining whether to approve, partially approve, or disapprove amendment 38 to the Groundfish FMP.
                </P>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    Yelloweye rockfish (
                    <E T="03">Sebastes ruberrimus</E>
                    ) was declared overfished in 2002. A 2025 update stock assessment estimated that the stock of yelloweye rockfish off the continental U.S. West Coast is currently at 40.1 percent of its unexploited level (
                    <E T="03">see</E>
                     Status of Yelloweye rockfish off the U.S. West Coast in 2025 at 
                    <E T="03">https://www.pcouncil.org/</E>
                    ). At its September 2025 meeting, the Council's Scientific and Statistical Committee (SSC) recommended the new assessment as the best scientific information available (BSIA) and suitable for informing management decisions. At the September 2025 meeting, the Council voted to adopt the September 2025 update assessment for yelloweye rockfish off the U.S. West Coast, using data through 2024 (see the Council's September 2025 Decision Summary at 
                    <E T="03">https://www.pcouncil.org/</E>
                    ). In April 2026, NMFS's Northwest Fisheries Science Center (NWFSC) and Southwest Fisheries Science Center (SWFSC) endorsed the 2025 stock assessment as the BSIA. NMFS updated the overfished status of yelloweye rockfish from overfished to rebuilt on May 19, 2026.
                </P>
                <P>
                    The California stock of quillback rockfish (
                    <E T="03">Sebastes maliger</E>
                    ) was declared overfished in 2023, based on the results of an update stock assessment completed in 2021 (see Status of quillback rockfish in U.S. waters off the coast of California in 2021 using catch and length data at 
                    <E T="03">https://www.pcouncil.org/</E>
                    ). A benchmark stock assessment was completed for the California stock of quillback rockfish in 2025, which incorporated California-specific data (see Status of Quillback rockfish in U.S. waters off California in 2025 at 
                    <E T="03">https://www.pcouncil.org/</E>
                    ). This benchmark stock assessment considerably revised the Council's and NMFS's past and current perception of stock status and indicates that the stock 
                    <PRTPAGE P="45765"/>
                    is currently above the target biomass level. The 2025 assessment estimates that the California stock of quillback rockfish off the continental U.S. West Coast is currently at 43.5 percent of its unexploited level. At its August 2025 meeting, the Council's SSC recommended the new assessment as the BSIA and suitable for informing management decisions. At the September 2025 meeting, the Council voted to adopt the September 2025 benchmark assessment for the California stock of quillback rockfish off the U.S. West Coast, using data through 2024 (see the Council's September 2025 Decision Summary at 
                    <E T="03">https://www.pcouncil.org/</E>
                    ). Also in September 2025, NMFS's NWFSC and SWFSC endorsed the 2025 stock assessment as the BSIA. NMFS updated the overfished status of the California stock of quillback rockfish from overfished to rebuilt on September 16, 2025.
                </P>
                <P>
                    At the June 2026 meeting, the Council recommended that the Groundfish FMP be amended to reflect the rebuilt status of yelloweye rockfish and the California stock of quillback rockfish (see June 2026 Decision Summary at 
                    <E T="03">https://www.pcouncil.org</E>
                    ). In terms of specific changes to the Groundfish FMP, amendment 38 would remove all mention of yelloweye rockfish and the California stock of quillback rockfish as rebuilding and all references to their rebuilding plans.
                </P>
                <P>NMFS welcomes comments on the proposed FMP amendment through the end of the comment period. A proposed rule to implement amendment 38 has been submitted for Secretarial review and approval. NMFS expects to publish and request public review and comment on proposed regulations to implement amendment 38 in the near future. For public comments on the proposed rule to be considered in the approval or disapproval decision on amendment 38, those comments must be received by the end of the comment period on the amendment. All comments received by the end of the comment period for the amendment, whether specifically directed to the amendment or the proposed rule, will be considered in the approval/disapproval decision.</P>
                <EXTRACT>
                    <FP>
                        (Authority: 16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                        )
                    </FP>
                </EXTRACT>
                <SIG>
                    <DATED> Dated: July 17, 2026. </DATED>
                    <NAME>Shannon Bettridge, </NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14694 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </PRORULE>
    </PRORULES>
    <VOL>91</VOL>
    <NO>138</NO>
    <DATE>Tuesday, July 21, 2026</DATE>
    <UNITNAME>Notices</UNITNAME>
    <NOTICES>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="45766"/>
                <AGENCY TYPE="F">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>[B-86-2026]</DEPDOC>
                <SUBJECT>Foreign-Trade Zone (FTZ) 202, Notification of Proposed Production Activity; PolyPeptide Laboratories Inc.; (Peptides); Torrance, California</SUBJECT>
                <P>PolyPeptide Laboratories, Inc. submitted a notification of proposed production activity to the FTZ Board (the Board) for its facilities in Torrance, California within FTZ 202. The notification conforming to the requirements of the Board's regulations (15 CFR 400.22) was received on July 13, 2026.</P>
                <P>
                    Pursuant to 15 CFR 400.14(b), FTZ production activity would be limited to the specific foreign-status material(s)/component(s) and specific finished product(s) described in the submitted notification (summarized below) and subsequently authorized by the Board. The benefits that may stem from conducting production activity under FTZ procedures are explained in the background section of the Board's website—accessible via 
                    <E T="03">www.trade.gov/ftz.</E>
                </P>
                <P>The proposed finished products include: liraglutide, sodium; nectin; linaclotide; and peptides (duty-free).</P>
                <P>The proposed foreign-status materials/components include: Fmoc-linker; phenylalanine; threonine; Fmoc-Lys(Mtt)-OH; histidine; Fmoc-Phe-Thr(Psi(Me,Me)pro)-OH; Fmoc-Leu-Ser(Psi(Me,Me)pro)-OH; pGlu-OH; diisopropylcarbodiimide; ethyl cyanoglyoxylate-2-oxime; tryptophan; Boc-His(Trt)-Ala-Glu(OtBu)-Gly-OH; arginine; Fmoc-His(Trt)-OH; D-valine; glutamine; glycine; valine; Fmoc-Lys(Boc)-OH; cysteine; methionine; aspartic acid; alanine; Boc-His(Trt)-Ala-Glu(OtBu)-Gly-OH; isoleucine; Fmoc-Phe-Thr(Psi(me,Me)pro)-OH; Fmoc-Leu-Ser(Psi(Me,Me)Pro)-OH; O(6)-NPE-N(2)-iBu protected G PMO Monomer; Fmoc-Glu(OtBu)-OH.H20; MBH-Br Resin; Rink Amide-MBHA Resin; and, 2-CTC Resin (duty rate ranges from duty-free to 6.5%).</P>
                <P>The request indicates that certain materials/components are subject to duties under section 122 of the Trade Act of 1974 (Section 122), section 232 of the Trade Expansion Act of 1962 (section 232), or section 301 of the Trade Act of 1974 (section 301), depending on the country of origin. The applicable section 122, section 232, and section 301 decisions require subject merchandise to be admitted to FTZs in privileged foreign status (19 CFR 146.41).</P>
                <P>
                    Public comment is invited from interested parties. Submissions shall be addressed to the Board's Executive Secretary and sent to: 
                    <E T="03">ftz@trade.gov.</E>
                     The closing period for their receipt is August 31, 2026.
                </P>
                <P>A copy of the notification will be available for public inspection in the “Online FTZ Information System” section of the Board's website.</P>
                <P>
                    For further information, contact Brian Warnes at 
                    <E T="03">brian.warnes@trade.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Elizabeth Whiteman,</NAME>
                    <TITLE>Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14692 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>[S-281-2026]</DEPDOC>
                <SUBJECT>Approval of Subzone Status; Pratt &amp; Whitney Engine Services, Inc.; Bridgeport, West Virginia</SUBJECT>
                <P>On May 26, 2026, the Executive Secretary of the Foreign-Trade Zones (FTZ) Board docketed an application submitted by the West Virginia Economic Development Authority, grantee of FTZ 240, requesting subzone status subject to the existing activation limit of FTZ 240, on behalf of Pratt &amp; Whitney Engine Services, Inc. in Bridgeport, West Virginia.</P>
                <P>
                    The application was processed in accordance with the FTZ Act and Regulations, including notice in the 
                    <E T="04">Federal Register</E>
                     inviting public comment (91 FR 31999, May 29, 2026). The FTZ staff examiner reviewed the application and determined that it meets the criteria for approval. Pursuant to the authority delegated to the FTZ Board Executive Secretary (15 CFR 400.36(f)), the application to establish Subzone 240B was approved on July 16, 2026, subject to the FTZ Act and the Board's regulations, including section 400.13, and further subject to FTZ 240's 2,000-acre activation limit.
                </P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Elizabeth Whiteman,</NAME>
                    <TITLE>Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14693 Filed 7-20-26; 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-570-212]</DEPDOC>
                <SUBJECT>Hardwood and Decorative Plywood From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances 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) determines that countervailable subsidies are being provided to producers and exporters of hardwood and decorative plywood (plywood) from the People's Republic of China (China). The period of investigation (POI) is January 1, 2024, through December 31, 2024.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable July 21, 2026.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Rebecca Janz or Gregory Taushani, 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) 482-2972 or (202) 482-1012, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On January 22, 2026, Commerce published the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                     and invited interested parties to comment.
                    <SU>1</SU>
                    <FTREF/>
                     In accordance with section 
                    <PRTPAGE P="45767"/>
                    701(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce aligned the final countervailing duty (CVD) determination with the final determination in the less-than-fair-value investigation of plywood from China.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">
                            See Hardwood and Decorative Plywood from the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, 
                            <PRTPAGE/>
                            and Alignment of Final Determination with Final Antidumping Duty Determination,
                        </E>
                         91 FR 2727 (January 22, 2026) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum (PDM).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">Id.,</E>
                         91 FR at 2727-28.
                    </P>
                </FTNT>
                <P>
                    For a complete discussion of the events that followed the 
                    <E T="03">Preliminary Determination, see</E>
                     the Issues and Decision Memorandum.
                    <SU>3</SU>
                    <FTREF/>
                     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, which is available to registered users at 
                    <E T="03">https://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/frnotices.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Hardwood and Decorative Plywood from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is plywood from China. 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 the Preliminary Scope Memorandum, we set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope) in scope-specific case briefs or other written comments.
                    <SU>4</SU>
                    <FTREF/>
                     We received scope case and rebuttal briefs from multiple interested parties. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, 
                    <E T="03">see</E>
                     the Final Scope Memorandum.
                    <SU>5</SU>
                    <FTREF/>
                     In the Final Scope Memorandum, Commerce determined that it not is modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                    <SU>6</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     Appendix I.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Preliminary Scope Decision Memorandum,” dated February 24, 2026 (Preliminary Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Final Scope Decision Memorandum,” dated concurrently with this notice (Final Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China, Indonesia, the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations,</E>
                         90 FR 25225, (June 16, 2025) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    Because the mandatory respondents (
                    <E T="03">i.e.,</E>
                     Linyi Evergreen Wood Co., Ltd (Linyi Evergreen) and Xuzhou Shelter Import and Export Co., Ltd (Xuzhou Shelter)) did not participate in this investigation, Commerce did not conduct verification.
                </P>
                <HD SOURCE="HD1">Analysis of Comments Received</HD>
                <P>
                    The subsidy programs under investigation and the issues raised in the case brief filed by the Coalition for Fair Trade in Hardwood Plywood (the petitioner) in this investigation are discussed in the Issues and Decision Memorandum. For a list of the topics discussed, and the issue raised to which we responded in the Issues and Decision Memorandum, 
                    <E T="03">see</E>
                     Appendix II.
                </P>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce 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>7</SU>
                    <FTREF/>
                     For a full description of the methodology underlying our final determination, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum. In making this final determination, Commerce relied on facts otherwise available, including with an adverse inference, pursuant to sections 776(a) and (b) of the Act. For further discussion of our application of adverse facts available, 
                    <E T="03">see</E>
                     the “Use of Facts Otherwise Available and Application of Adverse Inferences” section in the Issues and Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>7</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>
                <HD SOURCE="HD1">Final Affirmative Determination of Critical Circumstances</HD>
                <P>
                    In the 
                    <E T="03">Preliminary Determination,</E>
                     in accordance with section 703(e) of the Act and 19 CFR 351.206, Commerce preliminarily determined that critical circumstances exist with respect to imports of plywood for Linyi Evergreen, Xuzhou Shelter, the non-responsive companies, and all other exporters or producers not individually examined.
                    <SU>8</SU>
                    <FTREF/>
                     For this final determination, in accordance with section 705(a)(2) of the Act and 19 CFR 351.206, Commerce continues to find that critical circumstances exist for Linyi Evergreen, Xuzhou Shelter, the non-responsive companies, and all other exporters or producers not individually examined. With respect to finding that critical circumstances exist for Linyi Evergreen, Xuzhou Shelter, and the non-responsive companies, we relied on adverse facts available (AFA), pursuant to sections 776(a) and (b) of the Act. For further discussion of our critical circumstances analysis, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 2727.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Changes Since the Preliminary Determination</HD>
                <P>
                    Based on comments received from the petitioner, we made certain changes to the selection of the AFA rate and the countervailable subsidy rate calculation for the non-responsive respondents, including Linyi Evergreen and Xuzhou Shelter, and for all other producers/exporters. For a discussion of these changes, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <HD SOURCE="HD1">All-Others Rate</HD>
                <P>
                    Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and 
                    <E T="03">de minimis</E>
                     countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. 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 entirely under section 776 of the Act, Commerce may use any reasonable method to establish the estimated subsidy rate for all other producers and/or exporters.
                </P>
                <PRTPAGE P="45768"/>
                <P>
                    In this investigation, the estimated subsidy rates for the individually examined respondents are based entirely on facts available, pursuant section 776 of the Act. This rate is the only rate available in this proceeding to derive the all-others rate. Consequently, as a reasonable method, we are assigning the countervailable subsidy rate assigned to the mandatory respondents in this investigation to all other producers and exporters, pursuant to section 705(c)(5)(A)(ii) of the Act.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See, e.g., Melamine from Germany: Final Affirmative Countervailing Duty Determination,</E>
                         89 FR 97586 (December 9, 2024); 
                        <E T="03">see also Overhead Door Counterbalance Torsion Springs from the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination in Part,</E>
                         90 FR 39374 (August 15, 2025).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>Commerce determines that the following estimated countervailable subsidy rates exist for the period January 1, 2024, through December 31, 2024:</P>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s150,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Company</CHED>
                        <CHED H="1">
                            Subsidy rate
                            <LI>(percent</LI>
                            <LI>
                                <E T="03">ad valorem</E>
                                )
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Xuzhou Shelter Import and Export Co., Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Evergreen Wood Co., Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bergey (Tianjin) International</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Larkcop International Co., Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Dongstar Import &amp; Export Co., Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Jiahe Wood Industry Co. Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Ocean International Trading Co</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Xuzhou Edlon Wood Products Co., Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Xuzhou New Defu Wood International</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Xuzhou Tianshan Wood Co., Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Yishui Win-Win Wood Co., Ltd</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others</ENT>
                        <ENT>* 88.96</ENT>
                    </ROW>
                    <TNOTE>* Rate is based on facts available with adverse inferences.</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>Normally, Commerce discloses its calculations performed in connection with the preliminary determination to interested parties 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, in accordance with 19 CFR 351.224(b). However, because Commerce relied entirely on AFA, in accordance with section 776 of the Act, and the applied AFA rates are based on rates calculated in prior proceedings, there are no calculations to disclose.</P>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    As a result of our 
                    <E T="03">Preliminary Determination,</E>
                     and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise that were entered, or withdrawn from warehouse, for consumption on or after October 24, 2025, which is 90 days before date of publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>10</SU>
                    <FTREF/>
                     In accordance with section 703(d) of the Act, we instructed CBP to discontinue the suspension of liquidation of all entries of subject merchandise entered, or withdrawn from warehouse, on or after May 22, 2026, but to continue the suspension of liquidation of all entries of subject merchandise on or before May 21, 2026.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 2728.
                    </P>
                </FTNT>
                <P>If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a CVD order, reinstate the suspension of liquidation under section 706(a) of the Act, and require a cash deposit of estimated countervailing duties for entries of subject merchandise in the amounts indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled.</P>
                <HD SOURCE="HD1">ITC Notification</HD>
                <P>In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final affirmative determination that countervailable subsidies are being provided to producers and exporters of plywood from China. As Commerce's final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of plywood from China. In addition, we are making available to the ITC all non-privileged and non-proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance.</P>
                <P>If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated, and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, countervailing duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the “Suspension of Liquidation” section.</P>
                <HD SOURCE="HD1">Administrative Protective Order</HD>
                <P>This notice will serve as the final reminder to parties subject to an APO of their responsibility concerning the 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 violation that is subject to sanction.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination is issued and published in accordance with sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).</P>
                <SIG>
                    <PRTPAGE P="45769"/>
                    <DATED>Dated: July 15, 2026.</DATED>
                    <NAME>Christopher Abbott,</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 merchandise covered by the investigation is hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this investigation, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers in combination with a core or without a core. The veneers and, if present, the core are glued or otherwise bonded together. A hardwood and decorative plywood panel must have at least either the face or back veneer composed of one or more species of hardwood, softwood, or bamboo, regardless of any surface coverings. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2024 (including any revisions to that standard).</P>
                    <P>For purposes of the investigation a “veneer” is a slice of wood regardless of thickness which is cut, sliced or sawed from a log, bolt, or flitch. The face and back veneers are the outermost veneer of wood irrespective of additional surface coatings or covers as described below. The core of hardwood and decorative plywood (for those products that include a core) consists of the layer or layers of one or more material(s) that are situated between the face and back veneers. The core may be composed of a range of materials, including but not limited to hardwood, softwood, particleboard, or medium density fiberboard (MDF).</P>
                    <P>All hardwood and decorative plywood is included within the scope of the investigation regardless of whether or not the face and/or back veneers are surface coated or covered and whether or not such surface coating(s) or covers obscures the grain, textures, or markings of the wood. Examples of surface coatings and covers include, but are not limited to: ultra violet light cured polyurethanes; oil or oil-modified or water-based polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; paper; aluminum; high pressure laminate; MDF; medium density overlay (MDO); and phenolic film. Additionally, the face veneer of hardwood and decorative plywood may be sanded; smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing.</P>
                    <P>All hardwood and decorative plywood is included within the scope even if it is trimmed; cut-to-size; notched; punched; drilled; or has undergone other forms of minor processing. All hardwood and decorative plywood is included within the scope of the investigation, without regard to dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width, or length). However, the most common panel sizes of hardwood and decorative plywood are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 1219 x 3048 mm (48 x 120 inches). Subject merchandise also includes hardwood and decorative plywood that has been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.</P>
                    <P>
                        The scope of the investigation excludes the following items: (1) structural plywood (also known as “industrial plywood” or “industrial panels”) that (a) is certified, manufactured, and stamped to meet U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), including, but not limited to, the “bond performance” requirements and the performance criteria detailed in U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and (b) where the relevant standard identifies core species requirements, has a core made entirely of one or more of the following wood species: Pseudotsuga menziesii (Douglas Fir), Larix occidentalis (Western Larch), Tsuga heterophylla (Western Hemlock), Abies balsamea (Balsam Pine/Balsam Fir), Abies magnifica (California Red Fir), Abies grandis (Grand Fir), Abies procera (Noble Fir), Abies amabilis (Pacific Silver Fir), Abies concolor (White Fir), Abies lasiocarpa (Subalpine Fir), Picea glauca (White Spruce), Picea engelmannii (Engelmann Spruce), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus banksiana (Jack Pine), Pinus taeda (Loblolly Southern Pine), Pinus palustris (Longleaf Southern Pine), Pinus echinata (Shortleaf Southern Pine), Pinus elliottii (Slash Southern Pine), Pinus serotina (Pond Pine), Pinus resinosa (Red Pine), Pinus virginiana (Virginia Pine), Pinus monticola (Western White Pine), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus contorta (Lodgepole Pine), Pinus strobus (Eastern White Pine), and Pinus lambertiana (Sugar Pine); (2) products which have a face and back veneer of cork; (3) hardwood plywood subject to the antidumping and countervailing duty orders on hardwood plywood from China. 
                        <E T="03">See Certain Hardwood Plywood Products from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order,</E>
                         83 FR 504 (January 4, 2018); and 
                        <E T="03">Certain Hardwood Plywood Products from the People's Republic of China: Countervailing Duty Order,</E>
                         83 FR 513 (January 4, 2018); (4) multilayered wood flooring, as described in the antidumping duty and countervailing duty orders on multilayered wood flooring from China. 
                        <E T="03">See Multilayered Wood Flooring from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order,</E>
                         76 FR 76690 (December 8, 2011); and 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Countervailing Duty Order,</E>
                         76 FR 76693 (December 8, 2011), as amended by 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Amended Antidumping and Countervailing Orders,</E>
                         77 FR 5484 (February 3, 2012); (5) multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo; (6) plywood which has a shape or design other than a flat panel, with the exception of any minor processing described above; (7) products made entirely from bamboo and adhesives (also known as “solid bamboo”); and (8) Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface Film Plywood (PSF), defined as a panel with an “Exterior” or “Exposure 1” bond classification as is defined by The Engineered Wood Association, having an opaque phenolic film layer with a weight equal to or greater than 90g/m3 permanently bonded on both the face and back veneers and an opaque, moisture resistant coating applied to the edges.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are wooden furniture goods that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation is “ready to assemble” (RTA) furniture. RTA furniture is defined as (A) furniture packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes (1) all wooden components (in finished form) required to assemble a finished unit of furniture, (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, adhesive glues) required to assemble a finished unit of furniture, and (3) instructions providing guidance on the assembly of a finished unit of furniture; (B) unassembled bathroom vanity cabinets, having a space for one or more sinks, that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional component shape/size, painted or stained prior to importation, and stacked within a singled shipping package, except for furniture feet which may be packed and shipped separately; or (C) unassembled bathroom vanity linen closets that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional shape/size, painted or stained prior to importation, and stacked within a single shipping package, except for furniture feet which may be packed and shipped separately.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are kitchen cabinets that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation are RTA kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes: (1) all wooden components (in finished form) required to assemble a 
                        <PRTPAGE P="45770"/>
                        finished unit of cabinetry; (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, hooks, adhesive glues) required to assemble a finished unit of cabinetry; and (3) instructions providing guidance on the assembly of a finished unit of cabinetry. Excluded from the scope of this investigation are finished table tops, which are table tops imported in finished form with pre-cut or drilled openings to attach the underframe or legs. The table tops are ready for use at the time of import and require no further finishing or processing. Excluded from the scope of this investigation are finished countertops that are imported in finished form and require no further finishing or manufacturing.
                    </P>
                    <P>Also excluded from the scope of the investigation are laminated veneer lumber (LVL) door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger-jointed or lap-jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer oriented with the grain running perpendicular to the other layers; and (5) top layer machined with a curved edge and one or more profile channels throughout.</P>
                    <P>Also excluded from the scope of this investigation are certain door stiles and rails made of LVL that have a width not to exceed 50 millimeters, a thickness not to exceed 50 millimeters, and a length of less than 2,450 millimeters.</P>
                    <P>Also excluded from the scope of this investigation are finished two-ply products that are made of one ply of wood veneer and one ply of a non-wood veneer material and the two-ply product cannot be glued or otherwise adhered to additional plies or that are made of two plies of wood veneer and have undergone staining, cutting, notching, punching, drilling, or other processing on the surface of the veneer such that the two-ply product cannot be glued or otherwise adhered to additional plies.</P>
                    <P>Imports of hardwood and decorative plywood are primarily entered under the following HTSUS numbers:</P>
                    <P>4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4155; 4412.31.4160; 4412.31.4165; 4412.31.4180; 4412.31.4200; 4412.31.4500; 4412.31.4850; 4412.31.4860; 4412.31.4863; 4412.31.4865; 4412.31.4866; 4412.31.4869; 4412.31.4875; 4412.31.4880; 4412.31.5130; 4412.31.5135; 4412.31.5150; 4412.31.5155; 4412.31.5160; 4412.31.5165; 4412.31.5170; 4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5260; 4412.31.5262; 4412.31.5264; 4412.31.5265; 4412.31.5266; 4412.31.5268; 4412.31.5270; 4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 4412.32.2510; 4412.32.2520; 4412.32.2530; 4412.32.2610; 4412.32.2630; 4412.32.3130; 4412.32.3135; 4412.32.3140; 4412.32.3150; 4412.32.3155; 4412.32.3160; 4412.32.3165; 4412.32.3170; 4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.5700; 4412.33.0620; 4412.33.0640; 4412.33.0670; 4412.33.2630; 4412.33.3235; 4412.33.3255; 4412.33.3265; 4412.33.3275; 4412.33.3285; 4412.33.5700; 4412.34.2600; 4412.34.3235; 4412.34.3255; 4412.34.3265; 4412.34.3275; 4412.34.3285; 4412.34.5700; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5050; 4412.41.0000; 4412.42.0000; 4412.51.1030; 4412.51.1050; 4412.51.3111; 4412.51.3121; 4412.51.3141; 4412.51.3161; 4412.51.3175; 4412.51.4100; 4412.52.1030; 4412.52.1050; 4412.52.3121; 4412.52.3161; 4412.52.3175; 4412.52.4100; 4412.91.0600; 4412.91.1020; 4412.91.1030; 4412.91.1040; 4412.91.3110; 4412.91.3120; 4412.91.3130; 4412.91.3140; 4412.91.3150; 4412.91.3160; 4412.91.3170; 4412.91.4100; 4412.92.0700; 4412.92.1120; 4412.92.1130; 4412.92.1140; 4412.92.3120; 4412.92.3150; 4412.92.3160; 4412.92.3170; 4412.92.4200; 4412.94.1020; 4412.94.1030; 4412.94.1040; 4412.94.1050; 4412.94.3110; 4412.94.3111; 4412.94.3120; 4412.94.3121; 4412.94.3130; 4412.94.3131; 4412.94.3140; 4412.94.3141; 4412.94.3150; 4412.94.3160; 4412.94.3161; 4412.94.3170; 4412.94.3171; 4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5115; 4412.99.5701; and 4412.99.5710.</P>
                    <P>Imports of hardwood and decorative plywood may also enter under HTSUS subheadings 4412.10.9000; 4412.94.5100; 4412.94.9500; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500; 9403.90.7005; 9403.90.7010; and 9403.90.7080.</P>
                    <P>The HTSUS codes are provided for the convenience of the U.S. government and customs purposes, and do not define the scope of the investigation. The written description of the merchandise under investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</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. Changes Since the 
                        <E T="03">Preliminary Determination</E>
                    </FP>
                    <FP SOURCE="FP-2">IV. Critical Circumstances Determination</FP>
                    <FP SOURCE="FP-2">V. Use of Facts Otherwise Available and Application of Adverse Inferences</FP>
                    <FP SOURCE="FP-2">VI. Discussion of the Issue</FP>
                    <FP SOURCE="FP1-2">Comment: Selection of Rates Based on Adverse Facts Available (AFA) for Certain Less-Than-Adequate Remuneration (LTAR) Programs</FP>
                    <FP SOURCE="FP-2">VII. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14611 Filed 7-20-26; 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-552-852]</DEPDOC>
                <SUBJECT>Hardwood and Decorative Plywood From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, in Part</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 countervailable subsidies are being provided to producers and exporters of hardwood and decorative plywood (plywood) from the Socialist Republic of Vietnam (Vietnam). The period of investigation (POI) is January 1, 2024, through December 31, 2024.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable July 21, 2026.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Katherine Smith, 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) 482-0557.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On January 22, 2026, Commerce published the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                     and invited interested parties to comment.
                    <SU>1</SU>
                    <FTREF/>
                     In accordance with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce aligned the final countervailing duty (CVD) determination with the final determination in the less-than-fair-value investigation of plywood from Vietnam.
                    <SU>2</SU>
                    <FTREF/>
                     On June 23, 2026, we issued a post-preliminary determination regarding certain subsidy programs.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Determination of Critical Circumstances, and Alignment of Final Determination with Final Antidumping Duty Determination,</E>
                         91 FR 2741 (January 22, 2026) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 2742; 
                        <E T="03">see also Hardwood and Decorative Plywood from the Socialist Republic of Vietnam: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Negative Determination of Critical Circumstances, and Postponement of Final Determination and Extension of Provisional Measures,</E>
                         91 FR 10059 (March 2, 2026).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Post-Preliminary Analysis Memorandum for the Countervailing Duty Investigation of Hardwood and Decorative Plywood from the Socialist Republic of Vietnam,” dated June 23, 2026 (Post-Preliminary Analysis).
                    </P>
                </FTNT>
                <PRTPAGE P="45771"/>
                <P>
                    For a complete discussion of the events that occurred since Commerce published the 
                    <E T="03">Preliminary Determination, see</E>
                     the Issues and Decision Memorandum.
                    <SU>4</SU>
                    <FTREF/>
                     The Issues and Decision Memorandum is a public document and is on file electronically via Antidumping and Countervailing Duty Centralized Electronic Access System (ACCESS), which 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/frnotices</E>
                    .
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination in the Countervailing Duty Investigation of Hardwood and Decorative Plywood from the Socialist Republic of Vietnam,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is plywood from Vietnam. 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 the Preliminary Scope Memorandum, we set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope) in scope-specific case briefs or other written comments.
                    <SU>5</SU>
                    <FTREF/>
                     We received scope case and rebuttal briefs from multiple interested parties. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, 
                    <E T="03">see</E>
                     the Final Scope Memorandum.
                    <SU>6</SU>
                    <FTREF/>
                     In the Final Scope Memorandum, Commerce determined that it not is modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice</E>
                    .
                    <SU>7</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     Appendix I.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Preliminary Scope Decision Memorandum,” dated February 24, 2026 (Preliminary Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Final Scope Decision Memorandum,” dated concurrently with this notice (Final Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China, Indonesia, the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations,</E>
                         90 FR 25225, (June 16, 2025) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    As provided in section 782(i) of the Act, in May 2026, Commerce verified the information reported by the Government of Vietnam and Trieu Thai Son Co., Ltd and its cross-owned affiliate Nhat Duy Production and Trading Co., Ltd for use in our final determination. We used standard verification procedures, including an examination of relevant accounting records and original source documents provided at verification.
                    <SU>8</SU>
                    <FTREF/>
                     We attempted verification of Junma Phu Tho Co., Ltd. (Junma), but could not complete verification of Junma's information as required under section 782(i) of the Act.
                    <SU>9</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     the Issues and Decision Memorandum for more information.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Verification of the Questionnaire Responses of Trieu Thai Son Co., Ltd and Nhat Duy Production and Trading Co., Ltd,” dated June 22, 2026.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Verification of the Questionnaire Responses of Junma Phu Tho Co., Ltd,” dated June 22, 2026 (Junma's Verification Report). We note that we did not verify or rely on certain accounting records of Junma. 
                        <E T="03">See</E>
                         Junma's Verification Report for additional details.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Analysis of Subsidy Programs and Comments Received</HD>
                <P>
                    The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs that were submitted by parties in this investigation, are discussed in the Issues and Decision Memorandum. For a list of the issues raised by parties, and to which we responded in the Issues and Decision Memorandum, 
                    <E T="03">see</E>
                     Appendix II.
                </P>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce 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>10</SU>
                    <FTREF/>
                     For a full description of the methodology underlying our final determination, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum. In making this final determination, Commerce relied, in part, on facts available, including adverse facts available (AFA), pursuant to sections 776(a) and (b) of the Act. For further discussion of our application of AFA, 
                    <E T="03">see</E>
                     the section “Use of Facts Otherwise Available and Application of Adverse Inferences” in the Issues and Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         sections 771(5)(B) and (D) of the Act regarding financial contribution; 
                        <E T="03">see also</E>
                         section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination of Critical Circumstances</HD>
                <P>
                    In the 
                    <E T="03">Preliminary Determination,</E>
                     in accordance with section 703(e) of the Act, Commerce preliminarily found that critical circumstances did not exist with respect to imports of plywood from Junma, Trieu Thai, or all other exporters or producers not individually examined. For the final determination, pursuant to section 705(a)(2) of the Act and 19 CFR 351.206, we are now finding that critical circumstances exist for Junma, based on facts otherwise available, including with an adverse inference, pursuant to sections 776(a) and (b) of the Act. We continue to find that critical circumstances do not exist with respect to Trieu Thai and all other producers and exporters that enter subject merchandise under the all-others countervailable subsidy rate, based on an updated massive imports analysis over a 14-month period. For a discussion of the final critical circumstances analysis, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Changes Since the Preliminary Determination and Post-Preliminary Analysis</HD>
                <P>
                    Based on our review and analysis of the information received during verification, our post-preliminary analysis, and comments received from parties, for this final determination, we made certain changes to the countervailable subsidy rate calculations for Junma, Trieu Thai, and for all other producers/exporters. For a discussion of these changes, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <HD SOURCE="HD1">All-Others Rate</HD>
                <P>
                    Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and 
                    <E T="03">de minimis</E>
                     rates, and any rates determined entirely under section 776 of the Act.
                </P>
                <P>
                    In this investigation, we calculated an individual estimated countervailable subsidy rate for mandatory respondent Trieu Thai that is not is not zero, 
                    <E T="03">de minimis,</E>
                     or based entirely on facts otherwise available. However, we calculated an individual total net countervailable subsidy rate based entirely on facts otherwise available with an adverse inference for mandatory respondent Junma. Therefore, the only rate that is not zero, 
                    <E T="03">de minimis,</E>
                     or based entirely on facts otherwise available is the rate calculated for Trieu Thai. Accordingly, we are assigning the rate calculated for Trieu Thai to all other producers and exporters, pursuant to section 705(c)(5)(A)(i) of the Act.
                    <PRTPAGE P="45772"/>
                </P>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>Commerce determines that the following estimated net countervailable subsidy rates exist for the period January 1, 2024, through December 31, 2024:</P>
                <GPOTABLE COLS="02" OPTS="L2,tp0,i1" CDEF="s200,12">
                    <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">Junma Phu Tho Co., Ltd </ENT>
                        <ENT>* 165.39</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Trieu Thai Son Co., Ltd; Nhat Duy Production and Trading Co., Ltd </ENT>
                        <ENT>47.68</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others </ENT>
                        <ENT>47.68</ENT>
                    </ROW>
                    <TNOTE>* Rate is based on facts available with adverse inferences</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Commerce intends to disclose its calculations performed to interested parties in this final determination within five days of its public announcement, or if there is no public announcement, within five days of the date of the publication of this notice in the 
                    <E T="04">Federal Register</E>
                    , in accordance with 19 CFR 351.224(b).
                </P>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    As a result of our 
                    <E T="03">Preliminary Determination,</E>
                     and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise that were entered, or withdrawn from warehouse, for consumption on or after January 22, 2026, the date of publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>11</SU>
                    <FTREF/>
                     In accordance with section 703(d) of the Act, we instructed CBP to discontinue the suspension of liquidation of all entries of subject merchandise entered, or withdrawn from warehouse, on or after, May 22, 2026, but to continue the suspension of liquidation of all entries of subject merchandise on or before May 21, 2026.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 2742.
                    </P>
                </FTNT>
                <P>
                    Section 705(c)(4)(B) of the Act provides that, given an affirmative final determination of critical circumstances, any suspension of liquidation previously ordered shall apply to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the date on which the suspension of liquidation was first ordered. As explained above, Commerce determines that critical circumstances exist for imports of subject merchandise produced and/or exported by Junma but do not exist with respect to Trieu Thai or all other producers/exporters. Accordingly, pursuant to section 705(c)(4)(B) of the Act, Commerce will instruct CBP to suspend liquidation of all appropriate entries from Junma, but not Trieu Thai or all other producers and exporters, that were entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a CVD order, reinstate the suspension of liquidation under section 706(a) of the Act, and require a cash deposit of estimated countervailing duties for entries of subject merchandise in the amounts indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled.</P>
                <HD SOURCE="HD1">ITC Notification</HD>
                <P>In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final affirmative determination that countervailable subsidies are being provided to producers and exporters of plywood from Vietnam. As Commerce's final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of plywood from Vietnam. In addition, we are making available to the ITC all non-privileged and non-proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance.</P>
                <P>If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, countervailing duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the “Suspension of Liquidation” section.</P>
                <HD SOURCE="HD1">Administrative Protective Order</HD>
                <P>This notice will serve as the final reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO, in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/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 violation which is subject to sanction.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination is issued and published in accordance with sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).</P>
                <SIG>
                    <DATED> Dated: July 15, 2026.</DATED>
                    <NAME>Christopher Abbott,</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 merchandise covered by the investigation is hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this investigation, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers in combination with a core or without a core. The veneers and, if present, the core are glued or otherwise bonded together. A hardwood and decorative plywood panel must have at least either the face or back veneer composed of one or more species of hardwood, softwood, or bamboo, regardless of any surface coverings. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and 
                        <PRTPAGE P="45773"/>
                        Decorative Plywood, ANSI/HPVA HP-1-2024 (including any revisions to that standard).
                    </P>
                    <P>For purposes of the investigation a “veneer” is a slice of wood regardless of thickness which is cut, sliced or sawed from a log, bolt, or flitch. The face and back veneers are the outermost veneer of wood irrespective of additional surface coatings or covers as described below. The core of hardwood and decorative plywood (for those products that include a core) consists of the layer or layers of one or more material(s) that are situated between the face and back veneers. The core may be composed of a range of materials, including but not limited to hardwood, softwood, particleboard, or medium density fiberboard (MDF).</P>
                    <P>All hardwood and decorative plywood is included within the scope of the investigation regardless of whether or not the face and/or back veneers are surface coated or covered and whether or not such surface coating(s) or covers obscures the grain, textures, or markings of the wood. Examples of surface coatings and covers include, but are not limited to: ultra violet light cured polyurethanes; oil or oil-modified or water-based polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; paper; aluminum; high pressure laminate; MDF; medium density overlay (MDO); and phenolic film. Additionally, the face veneer of hardwood and decorative plywood may be sanded; smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing.</P>
                    <P>All hardwood and decorative plywood is included within the scope even if it is trimmed; cut-tosize; notched; punched; drilled; or has undergone other forms of minor processing. All hardwood and decorative plywood is included within the scope of the investigation, without regard to dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width, or length). However, the most common panel sizes of hardwood and decorative plywood are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 1219 x 3048 mm (48 x 120 inches). Subject merchandise also includes hardwood and decorative plywood that has been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.</P>
                    <P>
                        The scope of the investigation excludes the following items: (1) structural plywood (also known as “industrial plywood” or “industrial panels”) that (a) is certified, manufactured, and stamped to meet U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), including, but not limited to, the “bond performance” requirements and the performance criteria detailed in U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and (b) where the relevant standard identifies core species requirements, has a core made entirely of one or more of the following wood species: Pseudotsuga menziesii (Douglas Fir), Larix occidentalis (Western Larch), Tsuga heterophylla (Western Hemlock), Abies balsamea (Balsam Pine/Balsam Fir), Abies magnifica (California Red Fir), Abies grandis (Grand Fir), Abies procera (Noble Fir), Abies amabilis (Pacific Silver Fir), Abies concolor (White Fir), Abies lasiocarpa (Subalpine Fir), Picea glauca (White Spruce), Picea engelmannii (Engelmann Spruce), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus banksiana (Jack Pine), Pinus taeda (Loblolly Southern Pine), Pinus palustris (Longleaf Southern Pine), Pinus echinata (Shortleaf Southern Pine), Pinus elliottii (Slash Southern Pine), Pinus serotina (Pond Pine), Pinus resinosa (Red Pine), Pinus virginiana (Virginia Pine), Pinus monticola (Western White Pine), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus contorta (Lodgepole Pine), Pinus strobus (Eastern White Pine), and Pinus lambertiana (Sugar Pine); (2) products which have a face and back veneer of cork; (3) hardwood plywood subject to the antidumping and countervailing duty orders on hardwood plywood from China. 
                        <E T="03">See Certain Hardwood Plywood Products from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order,</E>
                         83 FR 504 (January 4, 2018); and 
                        <E T="03">Certain Hardwood Plywood Products from the People's Republic of China: Countervailing Duty Order,</E>
                         83 FR 513 (January 4, 2018); (4) multilayered wood flooring, as described in the antidumping duty and countervailing duty orders on multilayered wood flooring from China. 
                        <E T="03">See Multilayered Wood Flooring from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order,</E>
                         76 FR 76690 (December 8, 2011); and 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Countervailing Duty Order,</E>
                         76 FR 76693 (December 8, 2011), as amended by 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Amended Antidumping and Countervailing Orders,</E>
                         77 FR 5484 (February 3, 2012); (5) multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo; (6) plywood which has a shape or design other than a flat panel, with the exception of any minor processing described above; (7) products made entirely from bamboo and adhesives (also known as “solid bamboo”); and (8) Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface Film Plywood (PSF), defined as a panel with an “Exterior” or “Exposure 1” bond classification as is defined by The Engineered Wood Association, having an opaque phenolic film layer with a weight equal to or greater than 90g/m3 permanently bonded on both the face and back veneers and an opaque, moisture resistant coating applied to the edges.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are wooden furniture goods that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation is “ready to assemble” (RTA) furniture. RTA furniture is defined as (A) furniture packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes (1) all wooden components (in finished form) required to assemble a finished unit of furniture, (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, adhesive glues) required to assemble a finished unit of furniture, and (3) instructions providing guidance on the assembly of a finished unit of furniture; (B) unassembled bathroom vanity cabinets, having a space for one or more sinks, that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional component shape/size, painted or stained prior to importation, and stacked within a singled shipping package, except for furniture feet which may be packed and shipped separately; or (C) unassembled bathroom vanity linen closets that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional shape/size, painted or stained prior to importation, and stacked within a single shipping package, except for furniture feet which may be packed and shipped separately.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are kitchen cabinets that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation are RTA kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes: (1) all wooden components (in finished form) required to assemble a finished unit of cabinetry; (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, hooks, adhesive glues) required to assemble a finished unit of cabinetry; and (3) instructions providing guidance on the assembly of a finished unit of cabinetry. Excluded from the scope of the investigation are finished table tops, which are table tops imported in finished form with pre-cut or drilled openings to attach the underframe or legs. The table tops are ready for use at the time of import and require no further finishing or processing. Excluded from the scope of the investigation are finished countertops that are imported in finished form and require no further finishing or manufacturing. Also excluded from the scope of the investigation are laminated veneer lumber (“LVL”) door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger-jointed or lap-jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer 
                        <PRTPAGE P="45774"/>
                        oriented with the grain running perpendicular to the other layers; and (5) top layer machined with a curved edge and one or more profile channels throughout.
                    </P>
                    <P>Also excluded from the scope of this investigation are certain door stiles and rails made of LVL that have a width not to exceed 50 millimeters, a thickness not to exceed 50 millimeters, and a length of less than 2,450 millimeters.</P>
                    <P>Also excluded from the scope of this investigation are finished two-ply products that are made of one ply of wood veneer and one ply of a non-wood veneer material and the two-ply product cannot be glued or otherwise adhered to additional plies or that are made of two plies of wood veneer and have undergone staining, cutting, notching, punching, drilling, or other processing on the surface of the veneer such that the two-ply product cannot be glued or otherwise adhered to additional plies.</P>
                    <P>Imports of hardwood and decorative plywood are primarily entered under the following HTSUS numbers: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4155; 4412.31.4160; 4412.31.4165; 4412.31.4180; 4412.31.4200; 4412.31.4500; 4412.31.4850; 4412.31.4860; 4412.31.4863; 4412.31.4865; 4412.31.4866; 4412.31.4869; 4412.31.4875; 4412.31.4880; 4412.31.5130; 4412.31.5135; 4412.31.5150; 4412.31.5155; 4412.31.5160; 4412.31.5165; 4412.31.5170; 4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5260; 4412.31.5262; 4412.31.5264; 4412.31.5265; 4412.31.5266; 4412.31.5268; 4412.31.5270; 4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 4412.32.2510; 4412.32.2520; 4412.32.2530; 4412.32.2610; 4412.32.2630; 4412.32.3130; 4412.32.3135; 4412.32.3140; 4412.32.3150; 4412.32.3155; 4412.32.3160; 4412.32.3165; 4412.32.3170; 4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.5700; 4412.33.0620; 4412.33.0640; 4412.33.0670; 4412.33.2630; 4412.33.3235; 4412.33.3255; 4412.33.3265; 4412.33.3275; 4412.33.3285; 4412.33.5700; 4412.34.2600; 4412.34.3235; 4412.34.3255; 4412.34.3265; 4412.34.3275; 4412.34.3285; 4412.34.5700; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5050; 4412.41.0000; 4412.42.0000; 4412.51.1030; 4412.51.1050; 4412.51.3111; 4412.51.3121; 4412.51.3141; 4412.51.3161; 4412.51.3175; 4412.51.4100; 4412.52.1030; 4412.52.1050; 4412.52.3121; 4412.52.3161; 4412.52.3175; 4412.52.4100; 4412.91.0600; 4412.91.1020; 4412.91.1030; 4412.91.1040; 4412.91.3110; 4412.91.3120; 4412.91.3130; 4412.91.3140; 4412.91.3150; 4412.91.3160; 4412.91.3170; 4412.91.4100; 4412.92.0700; 4412.92.1120; 4412.92.1130; 4412.92.1140; 4412.92.3120; 4412.92.3150; 4412.92.3160; 4412.92.3170; 4412.92.4200; 4412.94.1020; 4412.94.1030; 4412.94.1040; 4412.94.1050; 4412.94.3110; 4412.94.3111; 4412.94.3120; 4412.94.3121; 4412.94.3130; 4412.94.3131; 4412.94.3140; 4412.94.3141; 4412.94.3150; 4412.94.3160; 4412.94.3161; 4412.94.3170; 4412.94.3171; 4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5115; 4412.99.5701; and 4412.99.5710.</P>
                    <P>Imports of hardwood and decorative plywood may also enter under HTSUS subheadings 4412.10.9000; 4412.94.5100; 4412.94.9500; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500; 9403.90.7005; 9403.90.7010; and 9403.90.7080. The HTSUS codes are provided for the convenience of the U.S. government and customs purposes, and do not define the scope of the investigation. The written description of the merchandise under investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</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. Changes Since the 
                        <E T="03">Preliminary Determination</E>
                         and Post-Preliminary Analysis
                    </FP>
                    <FP SOURCE="FP-2">IV. Critical Circumstances Determination</FP>
                    <FP SOURCE="FP-2">V. Use of Facts Otherwise Available and Application of Adverse Inferences</FP>
                    <FP SOURCE="FP-2">VI. Calculation of the All-Others Rate</FP>
                    <FP SOURCE="FP-2">VII. Subsidies Valuation Information</FP>
                    <FP SOURCE="FP-2">VIII. Interest Rate, Discount Rate, and Benchmarks</FP>
                    <FP SOURCE="FP-2">IX. Analysis of Programs</FP>
                    <FP SOURCE="FP-2">X. Discussion of the Issues</FP>
                    <FP SOURCE="FP1-2">Comment 1: Whether Commerce Should Apply Adverse Facts Available to Junma</FP>
                    <FP SOURCE="FP1-2">Comment 2: Whether Commerce's Verification Report Reflects the Verification at Junma</FP>
                    <FP SOURCE="FP1-2">Comment 3: Whether Commerce Should Countervail Loans Under the Preferential Lending to Exporters Program by State-Owned Commercial Banks</FP>
                    <FP SOURCE="FP1-2">Comment 4: Whether Commerce's Application of Facts Available to the Provision of Input Less-Than-Adequate Remuneration (LTAR) Programs is Warranted</FP>
                    <FP SOURCE="FP1-2">Comment 5: Whether Commerce Should Accept Junma's Sales Denominators</FP>
                    <FP SOURCE="FP1-2">Comment 6: Whether Commerce Should Accept Junma's Input Purchase Data and Reporting of Unused Programs</FP>
                    <FP SOURCE="FP1-2">Comment 7: Whether Commerce Should Countervail the Government of China's Provision of Veneers for LTAR Program</FP>
                    <FP SOURCE="FP1-2">Comment 8: Whether Commerce Correctly Calculated the Subsidy Under the Industrial Promotion Grant Under Decree 45/2012</FP>
                    <FP SOURCE="FP1-2">Comment 9: Whether Commerce Should Modify Certain Benchmarks for the Final Determination</FP>
                    <FP SOURCE="FP1-2">Comment 10: Whether Commerce Should Reject One of Trieu Thai's Corrections from Verification</FP>
                    <FP SOURCE="FP1-2">Comment 11: Whether Commerce Used the Correct Conversion in the GOV's Provision of Veneers for LTAR</FP>
                    <FP SOURCE="FP-2">XI. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14613 Filed 7-20-26; 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-560-844]</DEPDOC>
                <SUBJECT>Hardwood and Decorative Plywood From Indonesia: Final 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) determines that hardwood and decorative plywood (plywood) from Indonesia is being, or likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is April 1, 2024, through March 31, 2025.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable July 21, 2026.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Joy Zhang or Matthew Palmer, 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) 482-1168 or (202) 482-1678, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On March 2, 2026, Commerce published in the 
                    <E T="04">Federal Register</E>
                     its 
                    <E T="03">Preliminary Determination</E>
                     in the LTFV investigation of plywood from Indonesia.
                    <SU>1</SU>
                    <FTREF/>
                     A summary of the events that occurred since Commerce published the 
                    <E T="03">Preliminary Determination,</E>
                     as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum.
                    <SU>2</SU>
                    <FTREF/>
                     The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Dury Centralized Electronic Service System (ACCESS) 
                    <PRTPAGE P="45775"/>
                    ACCESS is available to registered users at 
                    <E T="03">https://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/frnotices.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from Indonesia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures,</E>
                         91 FR 10067 (March 2, 2026) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum (PDM).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination in the Less-Than-Fair-Value Investigation of Hardwood and Decorative Plywood from Indonesia,” dated concurrently with, and hereby adopted by, this notice.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is plywood from Indonesia. 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 the Preliminary Scope Memorandum, we set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope) in scope-specific case briefs or other written comments.
                    <SU>3</SU>
                    <FTREF/>
                     We received scope case and rebuttal briefs from multiple interested parties. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, 
                    <E T="03">see</E>
                     the Final Scope Memorandum.
                    <SU>4</SU>
                    <FTREF/>
                     In the Final Scope Memorandum, Commerce determined that it not is modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                    <SU>5</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     Appendix I.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Preliminary Scope Decision Memorandum,” dated February 24, 2026 (Preliminary Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Final Scope Decision Memorandum,” dated concurrently with this notice (Final Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China, Indonesia, the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations,</E>
                         90 FR 25225, (June 16, 2025) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    As provided in section 782(i) of the Tariff Act of 1930, as amended (the Act), in April 2026, we conducted verifications of the sales and cost information submitted by the mandatory respondents, PT Wijaya Cahaya Timer Tbk. (WCT) and PT Wijaya Triutama Plywood Industri (WTU) (collectively, WCT/WTU), as well as PT Sengon Indah Mas (SIM) and PT Java Wood Industri (JWI) (collectively, SIM/JWI), for use in the final determination.
                    <SU>6</SU>
                    <FTREF/>
                     We conducted the verifications using standard verification procedures, which included an examination of relevant sales and accounting records, and original source documents provided by WCT and SIM/JWI.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Memoranda, “Verification of the Sales Response of PT Sengon Indah Mas and PT Java Wood Industri,” dated May 20, 2026 (SIM/JWI Sales Verification Report); “Verification of the Sales Response of PT Wijaya Cahaya Timer Tbk.,” dated May 19, 2026 (WCT Sales Verification Report); “Verification of the Cost Response of PT Wijaya Cahaya Timer Tbk. And PT Wijaya Triutama Plywood Industri (WTU),” dated May 28, 2026 (WCT/WTU's Cost Verification Report); and “Verification of the Cost Responses of PT Sengon Indah Mas and PT Java Wood Industri,” dated June 4, 2026 (SIM/JWI's Cost Verification Report).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Analysis of Comments Received</HD>
                <P>All issues raised in the case and rebuttal briefs submitted by interested parties in this investigation are addressed in the Issues and Decision Memorandum. A list of the issues addressed in the Issues and Decision Memorandum is attached to this notice as Appendix II.</P>
                <HD SOURCE="HD1">Changes Since the Preliminary Determination</HD>
                <P>
                    We made certain changes to the 
                    <E T="03">Preliminary Determination.</E>
                     For a discussion of these changes, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Methodology</HD>
                <P>Commerce is conducting this investigation in accordance with section 731 of the Act. Export price is calculated in accordance with section 772(a) of the Act. Normal value is calculated in accordance with section 773 of the Act.</P>
                <P>
                    Pursuant to sections 776(a) and (b) of the Act, Commerce relies upon facts otherwise available, with adverse inferences, for PT. Mustika Buana Sejahtera. For a full description of the methodology underlying the determination to apply facts otherwise available, with adverse inferences, for PT. Mustika Buana Sejahtera, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum. This determination remains unchanged in the final determination.
                </P>
                <HD SOURCE="HD1">All-Others Rate</HD>
                <P>
                    Section 735(c)(5)(A) of the Act provide that Commerce shall determine an estimated weighted-average dumping margin for all exporters and producers not individually examined, 
                    <E T="03">i.e.,</E>
                     the all-others rate.
                    <SU>7</SU>
                    <FTREF/>
                     This rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for exporters and producers individually investigated, excluding zero and 
                    <E T="03">de minimis</E>
                     margins, and margins determined entirely under section 776 of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.109(f).
                    </P>
                </FTNT>
                <P>
                    In this investigation, Commerce calculated weighted-average dumping margins SIM/JWI,
                    <SU>8</SU>
                    <FTREF/>
                     and WCT/WTU 
                    <SU>9</SU>
                    <FTREF/>
                     that are not zero, 
                    <E T="03">de minimis,</E>
                     or based entirely on facts otherwise available. Therefore, Commerce calculated the all-others rate using a weighted average of the weighted-average dumping margins calculated for the examined respondents using each company's publicly-ranged values for the merchandise under consideration.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Commerce determines that these companies are a single entity. 
                        <E T="03">See Preliminary Determination</E>
                         PDM; 
                        <E T="03">see also</E>
                         Memorandum, “Preliminary Affiliation and Collapsing Memorandum,” dated February 24, 2026 (pertaining to SIM/JWI).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Commerce determines that these companies are a single entity. 
                        <E T="03">See Preliminary Determination</E>
                         PDM; 
                        <E T="03">see also</E>
                         Memorandum, “Preliminary Affiliation and Collapsing Memorandum,” dated February 24, 2026 (pertaining to WCT/WTU).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         With two respondents under examination, Commerce normally calculates: (A) a weighted-average of the estimated weighted-average dumping margins calculated for the examined respondents; (B) a simple average of the estimated weighted-average dumping margins calculated for the examined respondents; and (C) a weighted-average of the estimated weighted-average dumping margins calculated for the examined respondents using each company's publicly-ranged U.S. sales values for the merchandise under consideration. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. 
                        <E T="03">See, e.g., Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part,</E>
                         75 FR 53661, 53662 (September 1, 2010), and accompanying Issues and Decision Memorandum at Comment 1. As complete publicly ranged sales data were available, Commerce based the all-others rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data, 
                        <E T="03">see</E>
                         Memorandum, “All-Others Rate Calculation,” dated concurrently with this notice.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>
                    Commerce determines that the following estimated weighted-average dumping margins exist for the POI, April 1, 2024, through March 31, 2025:
                    <PRTPAGE P="45776"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,nj,tp0,i1" CDEF="s100,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Exporter or producer</CHED>
                        <CHED H="1">
                            Weighted-
                            <LI>average</LI>
                            <LI>dumping</LI>
                            <LI>margin</LI>
                            <LI>(percent)</LI>
                        </CHED>
                        <CHED H="1">
                            Cash deposit
                            <LI>rate</LI>
                            <LI>(adjusted for</LI>
                            <LI>subsidy</LI>
                            <LI>offset(s))</LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">PT Wijaya Cahaya Timber TBK/PT Wijaya Triutama Plywood Industri</ENT>
                        <ENT>15.40</ENT>
                        <ENT>15.39</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PT Sengon Indah Mas/PT Java Wood Industri</ENT>
                        <ENT>23.88</ENT>
                        <ENT>23.78</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PT. Mustika Buana Sejahtera</ENT>
                        <ENT>* 84.94</ENT>
                        <ENT>84.94</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others</ENT>
                        <ENT>18.10</ENT>
                        <ENT>18.06</ENT>
                    </ROW>
                    <TNOTE>* Rate based on facts available with adverse inferences.</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Commerce intends to disclose the calculations performed in connection with this final determination to parties to the proceeding within five days of any public announcement or, if there is no public announcement, within five days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    , in accordance with 19 CFR 351.224(b).
                </P>
                <HD SOURCE="HD1">Continuation of Suspension of Liquidation</HD>
                <P>
                    In accordance with section 735(c)(1)(B) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of entries of subject merchandise, as described in Appendix I, entered, or withdrawn from warehouse, for consumption on or after March 2, 2026, the date of publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), upon the publication of this notice, Commerce will instruct CBP to require a cash deposit equal to the estimated weighted-average dumping margin or the estimated all-others rate, as follows: (1) The cash deposit rate for the respondents listed above will be equal to the company-specific estimated weighted-average dumping margins determined in this final determination; (2) if the exporter is not a respondent identified above, but the producer is, then the cash deposit rate will be equal to the company-specific estimated weighted-average dumping margin established for that producer of the subject merchandise; and (3) the cash deposit rate for all other producers and exporters will be equal to the all-others estimated weighted-average dumping margin.</P>
                <P>These suspension of liquidation instructions and cash deposit requirements will remain in effect until further notice.</P>
                <HD SOURCE="HD1">International Trade Commission Notification</HD>
                <P>In accordance with section 735(d) of the Act, Commerce will notify the International Trade Commission (ITC) of its final affirmative determination of sales at LTFV. Because Commerce's final determination is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports or sales (or the likelihood of sales) for importation of plywood from Indonesia no later than 45 days after this final determination. If the ITC determines that such injury does not exist, this proceeding will be terminated, all cash deposits posted will be refunded, and suspension of liquidation will be lifted. If the ITC determines that such injury does exist, Commerce will issue an antidumping duty order directing CBP to assess, upon further instruction by Commerce, antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed in the “Suspension of Liquidation” section above.</P>
                <HD SOURCE="HD1">Administrative Protective Order (APO)</HD>
                <P>This notice serves as a final reminder to parties subject to an 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 subject to sanction.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This final determination and notice are issued and published in accordance with sections 735(d) and 777(i) of the Act, and 19 CFR 351.210(c).</P>
                <SIG>
                    <DATED> Dated: July 15, 2026.</DATED>
                    <NAME>Christopher Abbott,</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 merchandise covered by the investigation is hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this investigation, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers in combination with a core or without a core. The veneers and, if present, the core are glued or otherwise bonded together. A hardwood and decorative plywood panel must have at least either the face or back veneer composed of one or more species of hardwood, softwood, or bamboo, regardless of any surface coverings. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2024 (including any revisions to that standard).</P>
                    <P>For purposes of the investigation a “veneer” is a slice of wood regardless of thickness which is cut, sliced or sawed from a log, bolt, or flitch. The face and back veneers are the outermost veneer of wood irrespective of additional surface coatings or covers as described below. The core of hardwood and decorative plywood (for those products that include a core) consists of the layer or layers of one or more material(s) that are situated between the face and back veneers. The core may be composed of a range of materials, including but not limited to hardwood, softwood, particleboard, or medium density fiberboard (MDF).</P>
                    <P>
                        All hardwood and decorative plywood is included within the scope of the investigation regardless of whether or not the face and/or back veneers are surface coated or covered and whether or not such surface coating(s) or covers obscures the grain, textures, or markings of the wood. Examples of surface coatings and covers include, but are not limited to: ultra violet light cured polyurethanes; oil or oil-modified or water-based polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; paper; aluminum; high pressure laminate; MDF; medium density overlay (MDO); and phenolic film. Additionally, the 
                        <PRTPAGE P="45777"/>
                        face veneer of hardwood and decorative plywood may be sanded; smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing.
                    </P>
                    <P>All hardwood and decorative plywood is included within the scope even if it is trimmed; cut-to size; notched; punched; drilled; or has undergone other forms of minor processing. All hardwood and decorative plywood is included within the scope of the investigation, without regard to dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width, or length). However, the most common panel sizes of hardwood and decorative plywood are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 1219 x 3048 mm (48 x 120 inches). Subject merchandise also includes hardwood and decorative plywood that has been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.</P>
                    <P>
                        The scope of the investigation excludes the following items: (1) structural plywood (also known as “industrial plywood” or “industrial panels”) that (a) is certified, manufactured, and stamped to meet U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), including, but not limited to, the “bond performance” requirements and the performance criteria detailed in U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and (b) where the relevant standard identifies core species requirements, has a core made entirely of one or more of the following wood species: Pseudotsuga menziesii (Douglas Fir), Larix occidentalis (Western Larch), Tsuga heterophylla (Western Hemlock), Abies balsamea (Balsam Pine/Balsam Fir), Abies magnifica (California Red Fir), Abies grandis (Grand Fir), Abies procera (Noble Fir), Abies amabilis (Pacific Silver Fir), Abies concolor (White Fir), Abies lasiocarpa (Subalpine Fir), Picea glauca (White Spruce), Picea engelmannii (Engelmann Spruce), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus banksiana (Jack Pine), Pinus taeda (Loblolly Southern Pine), Pinus palustris (Longleaf Southern Pine), Pinus echinata (Shortleaf Southern Pine), Pinus elliottii (Slash Southern Pine), Pinus serotina (Pond Pine), Pinus resinosa (Red Pine), Pinus virginiana (Virginia Pine), Pinus monticola (Western White Pine), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus contorta (Lodgepole Pine), Pinus strobus (Eastern White Pine), and Pinus lambertiana (Sugar Pine); (2) products which have a face and back veneer of cork; (3) hardwood plywood subject to the antidumping and countervailing duty orders on hardwood plywood from China. 
                        <E T="03">See Certain Hardwood Plywood Products from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order,</E>
                         83 FR 504 (January 4, 2018); and 
                        <E T="03">Certain Hardwood Plywood Products from the People's Republic of China: Countervailing Duty Order,</E>
                         83 FR 513 (January 4, 2018); (4) multilayered wood flooring, as described in the antidumping duty and countervailing duty orders on multilayered wood flooring from China. 
                        <E T="03">See Multilayered Wood Flooring from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order,</E>
                         76 FR 76690 (December 8, 2011); and 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Countervailing Duty Order,</E>
                         76 FR 76693 (December 8, 2011), as amended by 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Amended Antidumping and Countervailing Orders,</E>
                         77 FR 5484 (February 3, 2012); (5) multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo; (6) plywood which has a shape or design other than a flat panel, with the exception of any minor processing described above; (7) products made entirely from bamboo and adhesives (also known as “solid bamboo”); and (8) Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface Film Plywood (PSF), defined as a panel with an “Exterior” or “Exposure 1” bond classification as is defined by The Engineered Wood Association, having an opaque phenolic film layer with a weight equal to or greater than 90g/m3 permanently bonded on both the face and back veneers and an opaque, moisture resistant coating applied to the edges.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are wooden furniture goods that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation is “ready to assemble” (RTA) furniture. RTA furniture is defined as (A) furniture packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes (1) all wooden components (in finished form) required to assemble a finished unit of furniture, (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, adhesive glues) required to assemble a finished unit of furniture, and (3) instructions providing guidance on the assembly of a finished unit of furniture; (B) unassembled bathroom vanity cabinets, having a space for one or more sinks, that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional component shape/size, painted or stained prior to importation, and stacked within a singled shipping package, except for furniture feet which may be packed and shipped separately; or (C) unassembled bathroom vanity linen closets that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional shape/size, painted or stained prior to importation, and stacked within a single shipping package, except for furniture feet which may be packed and shipped separately.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are kitchen cabinets that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation are RTA kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes: (1) all wooden components (in finished form) required to assemble a finished unit of cabinetry; (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, hooks, adhesive glues) required to assemble a finished unit of cabinetry; and (3) instructions providing guidance on the assembly of a finished unit of cabinetry. Excluded from the scope of the investigation are finished table tops, which are table tops imported in finished form with pre-cut or drilled openings to attach the underframe or legs. The table tops are ready for use at the time of import and require no further finishing or processing. Excluded from the scope of the investigation are finished countertops that are imported in finished form and require no further finishing or manufacturing. Also excluded from the scope of the investigation are laminated veneer lumber (“LVL”) door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger-jointed or lap-jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer oriented with the grain running perpendicular to the other layers; and (5) top layer machined with a curved edge and one or more profile channels throughout.
                    </P>
                    <P>Also excluded from the scope of this investigation are certain door stiles and rails made of LVL that have a width not to exceed 50 millimeters, a thickness not to exceed 50 millimeters, and a length of less than 2,450 millimeters.</P>
                    <P>Also excluded from the scope of this investigation are finished two-ply products that are made of one ply of wood veneer and one ply of a non-wood veneer material and the two-ply product cannot be glued or otherwise adhered to additional plies or that are made of two plies of wood veneer and have undergone staining, cutting, notching, punching, drilling, or other processing on the surface of the veneer such that the two-ply product cannot be glued or otherwise adhered to additional plies.</P>
                    <P>
                        Imports of hardwood and decorative plywood are primarily entered under the following HTSUS subheadings: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4155; 4412.31.4160; 4412.31.4165; 4412.31.4180; 4412.31.4200; 4412.31.4500; 
                        <PRTPAGE P="45778"/>
                        4412.31.4850; 4412.31.4860; 4412.31.4863; 4412.31.4865; 4412.31.4866; 4412.31.4869; 4412.31.4875; 4412.31.4880; 4412.31.5130; 4412.31.5135; 4412.31.5150; 4412.31.5155; 4412.31.5160; 4412.31.5165; 4412.31.5170; 4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5260; 4412.31.5262; 4412.31.5264; 4412.31.5265; 4412.31.5266; 4412.31.5268; 4412.31.5270; 4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 4412.32.2510; 4412.32.2520; 4412.32.2530; 4412.32.2610; 4412.32.2630; 4412.32.3130; 4412.32.3135; 4412.32.3140; 4412.32.3150; 4412.32.3155; 4412.32.3160; 4412.32.3165; 4412.32.3170; 4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.5700; 4412.33.0620; 4412.33.0640; 4412.33.0670; 4412.33.2630; 4412.33.3235; 4412.33.3255; 4412.33.3265; 4412.33.3275; 4412.33.3285; 4412.33.5700; 4412.34.2600; 4412.34.3235; 4412.34.3255; 4412.34.3265; 4412.34.3275; 4412.34.3285; 4412.34.5700; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5050; 4412.41.0000; 4412.42.0000; 4412.51.1030; 4412.51.1050; 4412.51.3111; 4412.51.3121; 4412.51.3141; 4412.51.3161; 4412.51.3175; 4412.51.4100; 4412.52.1030; 4412.52.1050; 4412.52.3121; 4412.52.3161; 4412.52.3175; 4412.52.4100; 4412.91.0600; 4412.91.1020; 4412.91.1030; 4412.91.1040; 4412.91.3110; 4412.91.3120; 4412.91.3130; 4412.91.3140; 4412.91.3150; 4412.91.3160; 4412.91.3170; 4412.91.4100; 4412.92.0700; 4412.92.1120; 4412.92.1130; 4412.92.1140; 4412.92.3120; 4412.92.3150; 4412.92.3160; 4412.92.3170; 4412.92.4200; 4412.94.1020; 4412.94.1030; 4412.94.1040; 4412.94.1050; 4412.94.3110; 4412.94.3111; 4412.94.3120; 4412.94.3121; 4412.94.3130; 4412.94.3131; 4412.94.3140; 4412.94.3141; 4412.94.3150; 4412.94.3160; 4412.94.3161; 4412.94.3170; 4412.94.3171; 4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5115; 4412.99.5701; and 4412.99.5710.
                    </P>
                    <P>Imports of hardwood and decorative plywood may also enter under HTSUS subheadings 4412.10.9000; 4412.94.5100; 4412.94.9500; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500; 9403.90.7005; 9403.90.7010; and 9403.90.7080.</P>
                    <P>The HTSUS subheadings are provided for the convenience of the U.S. government and customs purposes, and do not define the scope of the investigation. The written description of the merchandise under investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</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. Changes Since the 
                        <E T="03">Preliminary Determination</E>
                    </FP>
                    <FP SOURCE="FP-2">IV. Discussion of the Issues</FP>
                    <FP SOURCE="FP1-2">Comment 1: Whether Commerce Should Alter Its Particular Market Situation Adjustment</FP>
                    <FP SOURCE="FP1-2">Comment 2: Whether Commerce Should Adjust Its Constructed Value Profit and Selling Expense Ratios</FP>
                    <FP SOURCE="FP1-2">Comment 3: Whether Commerce Should Apply Partial Facts Available to WCT's Unreported Billing Adjustments</FP>
                    <FP SOURCE="FP1-2">Comment 4: Whether Commerce Should Revise WCT's Cost Adjustment</FP>
                    <FP SOURCE="FP1-2">Comment 5: Whether Commerce Should Revise Its WTU's General and Administrative Expense Ratio Adjustment</FP>
                    <FP SOURCE="FP1-2">Comment 6: Whether WCT and WTU Should Be Treated as the Same Manufacturer</FP>
                    <FP SOURCE="FP1-2">Comment 7: Whether Commerce Should Correct Its Adjustment for WCT's Unreconciled Costs</FP>
                    <FP SOURCE="FP1-2">Comment 8: Whether Commerce Should Continue to Rely on Japan, and all Japanese Sales, for SIM/JWI's Comparison Market</FP>
                    <FP SOURCE="FP1-2">Comment 9: Whether SIM and JWI Should Be Treated as the Same Manufacturer</FP>
                    <FP SOURCE="FP1-2">Comment 10: Whether SIM/JWI's Comparison Market Gross Unit Price in U.S. Dollars Should Be Used in the Margin Calculations</FP>
                    <FP SOURCE="FP-2">V. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14612 Filed 7-20-26; 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-570-211]</DEPDOC>
                <SUBJECT>Hardwood and Decorative Plywood From the People's Republic of China: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances</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 hardwood and decorative plywood (plywood) from the People's Republic of China (China) is, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is October 1, 2024, through March 31, 2025. The final dumping margins of sales at LTFV are listed below in the “Final Determination” section of this notice.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable July 21, 2026.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Preston Cox, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (240) 956-8630.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On March 2, 2026, Commerce published the preliminary determination of this LTFV investigation and invited interested parties to comment.
                    <SU>1</SU>
                    <FTREF/>
                     No interested party submitted comments. Thus, Commerce made no changes from the 
                    <E T="03">Preliminary Determination,</E>
                     which is herein adopted as the final determination of this investigation. Additionally, because the final determination remains unchanged from the 
                    <E T="03">Preliminary Determination,</E>
                     no decision memorandum accompanies this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Preliminary Affirmative Determination of Critical Circumstances,</E>
                         91 FR 10073 (March 2, 2026) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum (PDM).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The products covered by this investigation is plywood from China. For a complete description of the scope of this investigation, 
                    <E T="03">see</E>
                     Appendix.
                </P>
                <HD SOURCE="HD1">Scope Comments</HD>
                <P>
                    In the Preliminary Scope Memorandum, we set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope) in scope-specific case briefs or other written comments.
                    <SU>2</SU>
                    <FTREF/>
                     We received scope case and rebuttal briefs from multiple interested parties. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, 
                    <E T="03">see</E>
                     the Final Scope Memorandum.
                    <SU>3</SU>
                    <FTREF/>
                     In the Final Scope Memorandum, Commerce determined that it not is modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                    <SU>4</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     Appendix I.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Preliminary Scope Decision Memorandum,” dated February 24, 2026 (Preliminary Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Final Scope Decision Memorandum,” dated concurrently with this notice (Final Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China, Indonesia, the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations,</E>
                         90 FR 25225, (June 16, 2025) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    Because Commerce found that the mandatory respondents are not eligible for a separate rate and are, therefore, part of the China-wide entity, and 
                    <PRTPAGE P="45779"/>
                    because Commerce found that the China-wide entity has been uncooperative, Commerce did not conduct verification.
                </P>
                <HD SOURCE="HD1">China-Wide Entity and Use of Adverse Facts Available (AFA)</HD>
                <P>
                    As discussed in the 
                    <E T="03">Preliminary Determination,</E>
                     pursuant to sections 776(a) and (b) of the Tariff Act of 1930, as amended (the Act), Commerce relied upon facts otherwise available with adverse inferences with respect to the China-wide entity. The China-wide entity includes Linyi Evergreen Wood Co., Ltd. (Evergreen) and Xuzhou Shelter Import and Export Co., Ltd. (Xuzhou Shelter), the companies selected for individual examination, because they failed to respond to Commerce's antidumping duty (AD) questionnaire, as well as nine other producers/exporters 
                    <SU>5</SU>
                    <FTREF/>
                     who failed to respond to Commerce's quantity and value (Q&amp;V) questionnaire and/or failed to submit a separate rate application, as instructed in the 
                    <E T="03">Initiation Notice.</E>
                    <SU>6</SU>
                    <FTREF/>
                     There is no new information on the record that would cause us to revisit our decision in the 
                    <E T="03">Preliminary Determination.</E>
                     Accordingly, for the final determination, we continue to find that the application of AFA pursuant to sections 776(a) and (b) of the Act is warranted with respect to the China-wide entity and the non-responsive companies.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The companies that failed to respond to our Q&amp;V questionnaire are: Celtic Co., Ltd., Hangzhou Zen Bamboo and Hardwood Prod. Ltd., Jiangsu High Hope Arser Co., Ltd., Larkcop International Co. Ltd., Linyi Dongstar Import &amp; Export Co., Ltd., Linyi Jiahe Wood Industry Co., Ltd., Panlinks Company Limited, Xuzhou Tianshan Wood Co., Ltd., and Yishui Win-Win Wood Co., Ltd.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See Initiation Notice,</E>
                         90 FR at 25212 (“Commerce requires that respondents from China and Vietnam submit a response to both the Q&amp;V questionnaire and the separate rate application by the respective deadlines in order to receive consideration for separate-rate status”); 
                        <E T="03">see also Preliminary Determination,</E>
                         91 FR at 10074, and PDM at 1-2.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Affirmative Determination of Critical Circumstances</HD>
                <P>
                    As discussed in the 
                    <E T="03">Preliminary Determination,</E>
                     in accordance with section 733(e) of the Act and 19 CFR 351.206, Commerce determined that critical circumstances exist with respect to imports of plywood from China for the companies not individually examined and eligible for a separate rate (
                    <E T="03">i.e.,</E>
                     Linyi Hanbo Import Co., Ltd., Shanghai Brightwood Trading Co., Ltd., Lianyungang Yuantai International Trade Co., Ltd., and Linyi Vata Imp. &amp; Exp. Co., Ltd.) and the China-wide entity. There is no new information on the record that would cause us to revisit our decision in the 
                    <E T="03">Preliminary Determination.</E>
                     Accordingly, for the final determination, we continue to find that critical circumstances exist with respect to imports of plywood from China for these entities.
                </P>
                <HD SOURCE="HD1">Combination Rates</HD>
                <P>
                    In the 
                    <E T="03">Initiation Notice,</E>
                    <SU>7</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>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See Initiation Notice,</E>
                         90 FR at 25217.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</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://www.trade.gov/enforcement-and-compliance-policy-bulletins-0.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Separate Rates</HD>
                <P>
                    As discussed in the 
                    <E T="03">Preliminary Determination,</E>
                     we preliminarily granted a separate rate to certain companies that we did not select for individual examination.
                    <SU>9</SU>
                    <FTREF/>
                     However, because we preliminarily found that the mandatory respondents are ineligible for an individually calculated separate rate and are part of the China-wide entity subject to a rate based entirely under section 776 of the Act, we preliminarily applied to the non-selected respondents eligible for a separate rate the margin calculated using the U.S. price in the petition and the surrogate value of birch logs imported into Malaysia, based on information provided by the petitioner, 
                    <E T="03">i.e.,</E>
                     187.27 percent.
                    <SU>10</SU>
                    <FTREF/>
                     There is no new information on the record that would cause us to revisit our decision in the 
                    <E T="03">Preliminary Determination.</E>
                     Accordingly, for the final determination, we continue to find that the mandatory respondents are ineligible for an individually calculated separate rate and are part of the China-wide entity subject to a rate based entirely under section 776 of the Act. We also continue to find that respondents eligible for a separate rate are subject to the rate of 187.27 percent.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Preliminary Determination, 91 FR at 10074-75, and PDM at 8-12.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See Initiation Notice,</E>
                         90 FR at 25217.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>
                    Commerce determines that the following estimated weighted-average dumping margins exist:
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The China-Wide Entity includes Linyi Evergreen and Xuzhou Shelter.
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,nj,tp0,i1" CDEF="s100,r150,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Producer</CHED>
                        <CHED H="1">Exporter</CHED>
                        <CHED H="1">
                            Estimated
                            <LI>weighted-</LI>
                            <LI>average</LI>
                            <LI>dumping</LI>
                            <LI>margin</LI>
                            <LI>(percent)</LI>
                        </CHED>
                        <CHED H="1">
                            Cash deposit rate (adjusted for subsidy 
                            <LI>offsets)</LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Linyi Xinshancheng Board Factory</ENT>
                        <ENT>Linyi Hanbo Import Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Feixian Yukang Board Factory</ENT>
                        <ENT>Linyi Hanbo Import Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Feixian Jialun Board Factory</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Feixian Shuxin Board Factory</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Feixian Dongining Board Factory</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Jillklm Wood Industry Co., Ltd</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Linhai Wood Industry Co., Ltd</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Lanshan District Caihai Board Factory</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Feixian Haokai Wood Industry Co., Ltd</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Feixian Chenhui Board Factory</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Xuzhou Dingfeng Wood Industry Co., Ltd</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Fengxian Shuangxingyuan Wood Industry Co., Ltd</ENT>
                        <ENT>Shanghai Brightwood Trading Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shandong Yimeijia New Materials Co., Ltd</ENT>
                        <ENT>Lianyungang Yuantai International Trade Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Feixian Jialun Board Factory</ENT>
                        <ENT>Lianyungang Yuantai International Trade Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Dongfang Fuchao Wood Industry Co., Ltd</ENT>
                        <ENT>Lianyungang Yuantai International Trade Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <PRTPAGE P="45780"/>
                        <ENT I="01">Linyi Xinshancheng Wood Co., Ltd</ENT>
                        <ENT>Linyi Vata Imp. &amp; Exp. Co., Ltd</ENT>
                        <ENT>187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="01">
                            China-Wide Entity 
                            <SU>11</SU>
                        </ENT>
                        <ENT>* 187.27</ENT>
                        <ENT>185.96</ENT>
                    </ROW>
                    <TNOTE>* Rate based on facts available with adverse inferences.</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Because we have not modified our calculation of the margins in the 
                    <E T="03">Preliminary Determination,</E>
                     we are adopting the 
                    <E T="03">Preliminary Determination</E>
                     as the final determination. Consequently, there are no new calculations to disclose in accordance with 19 CFR 351.224(b) for the final determination of this investigation.
                </P>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    In accordance with section 735(c)(1)(B) of the Act, we will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all appropriate entries of subject merchandise, as described in the appendix to this notice, which were entered, or withdrawn from warehouse, for consumption on or after March 2, 2026, the date of publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    . Because Commerce found that critical circumstances exist with respect companies not individually examined but eligible for a separate rate, as well as the China-wide entity, pursuant to section 735(c)(4)(B) of the Act, suspension of liquidation will continue with respect to all applicable entries of subject merchandise from these entities, as described in the appendix to this notice, which were entered, or withdrawn from warehouse, for consumption on or after December 2, 2025, which is 90 days before the date of publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>
                    If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue an AD order, reinstate the suspension of liquidation under section 736(a) of the Act, and require a cash deposit of estimated antidumping duties for entries of subject merchandise in the amounts indicated above, effective on the date of publication of the ITC's affirmative final determination in the 
                    <E T="04">Federal Register</E>
                    . If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled.
                </P>
                <P>Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), upon resumption of suspension of liquidation, Commerce will also instruct CBP to require a cash deposit for estimated antidumping duties for appropriate entries as follows: (1) for the producer/exporter combinations listed in the table above, the applicable cash deposit rate is listed in the table for that combination; (2) for all combinations of Chinese producers/exporters of subject merchandise that have not established eligibility for a separate rate, the cash deposit rate will be equal to the cash deposit rate listed for the China-wide entity in the table above; and (3) for all third-country exporters of the subject merchandise that are not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Chinese producer/exporter combination or the China-wide entity that supplied that third-country exporter. These suspension of liquidation instructions will remain in effect until further notice.</P>
                <P>
                    To determine the cash deposit rate, Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic pass-through and export subsidies countervailed in a companion countervailing duty (CVD) proceeding, when CVD provisional measures are in effect. Accordingly, where Commerce has made a final affirmative determination for domestic pass-through or export subsides, Commerce offsets the estimated weighted-average dumping margin by the appropriate CVD rate. Commerce has continued to adjust the cash deposit rate for export subsidies found in the companion CVD investigation by the appropriate export subsidy rate; however, the suspension of liquidation of provisional measures in the companion CVD case has been discontinued.
                    <SU>12</SU>
                    <FTREF/>
                     Therefore, we are not instructing CBP to collect cash deposits based on the estimated weighted-average dumping margin adjusted for export subsidies at this time.
                    <SU>13</SU>
                    <FTREF/>
                     If the ITC makes a final affirmative determination of injury due to both dumping and subsidies, then the cash deposit rate will be revised effective on the date of publication of the ITC's final affirmative determination in the 
                    <E T="04">Federal Register</E>
                     to be the company-specific estimated weighted-average dumping margin adjusted for export subsidies.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         section 703(d) of the Act, which states that the provisional measures may not be in effect for more than four months, which in the companion CVD case is 120 days after the publication of the preliminary determination, or May 21, 2026 (
                        <E T="03">i.e.,</E>
                         the last day provisional measures are in effect).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination,</E>
                         91 FR 2727 (January 22, 2026); 
                        <E T="03">see also</E>
                         section 703(d) of the Act, which states that the provisional measures may not be in effect for more than four months, which in the companion CVD case is 120 days after the publication of the preliminary determination, or May 21, 2026.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">ITC Notification</HD>
                <P>
                    In accordance with section 735(d) of the Act, Commerce will notify the ITC of its final affirmative determination of sales at LTFV. Because Commerce's final determination is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports, or sales (or the likelihood of sales) for importation, of active anode material no later than 45 days after this final determination. If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated, all cash deposits will be refunded or canceled, and suspension of liquidation will be lifted. If the ITC determines that such injury does exist, Commerce will issue an AD order directing CBP to assess, upon further instructions by Commerce, antidumping duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the “Suspension of Liquidation” section.
                    <PRTPAGE P="45781"/>
                </P>
                <HD SOURCE="HD1">Administrative Protective Order (APO)</HD>
                <P>This notice serves as the only reminder to parties subject to an APO of their responsibility concerning the disposition 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>This determination and this notice are issued and published in accordance with sections 735(d) and 777(i) of the Act, and 19 CFR 351.210(c).</P>
                <SIG>
                    <DATED>Dated: July 15, 2026.</DATED>
                    <NAME>Christopher Abbott,</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">Scope of the Investigation</HD>
                    <P>The merchandise covered by this investigation is hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this investigation, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers in combination with a core or without a core. The veneers and, if present, the core are glued or otherwise bonded together. A hardwood and decorative plywood panel must have at least either the face or back veneer composed of one or more species of hardwood, softwood, or bamboo, regardless of any surface coverings. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2024 (including any revisions to that standard).</P>
                    <P>For purposes of the investigation a “veneer” is a slice of wood regardless of thickness which is cut, sliced or sawed from a log, bolt, or flitch. The face and back veneers are the outermost veneer of wood irrespective of additional surface coatings or covers as described below. The core of hardwood and decorative plywood (for those products that include a core) consists of the layer or layers of one or more material(s) that are situated between the face and back veneers. The core may be composed of a range of materials, including but not limited to hardwood, softwood, particleboard, or medium density fiberboard (MDF).</P>
                    <P>All hardwood and decorative plywood is included within the scope of the investigation regardless of whether or not the face and/or back veneers are surface coated or covered and whether or not such surface coating(s) or covers obscures the grain, textures, or markings of the wood. Examples of surface coatings and covers include, but are not limited to: ultra violet light cured polyurethanes; oil or oil-modified or water-based polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; paper; aluminum; high pressure laminate; MDF; medium density overlay (MDO); and phenolic film. Additionally, the face veneer of hardwood and decorative plywood may be sanded; smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing.</P>
                    <P>All hardwood and decorative plywood is included within the scope even if it is trimmed; cut-to-size; notched; punched; drilled; or has undergone other forms of minor processing. All hardwood and decorative plywood is included within the scope of the investigation, without regard to dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width, or length). However, the most common panel sizes of hardwood and decorative plywood are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 1219 x 3048 mm (48 x 120 inches). Subject merchandise also includes hardwood and decorative plywood that has been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.</P>
                    <P>
                        The scope of the investigation excludes the following items: (1) structural plywood (also known as “industrial plywood” or “industrial panels”) that (a) is certified, manufactured, and stamped to meet U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), including, but not limited to, the “bond performance” requirements and the performance criteria detailed in U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and (b) where the relevant standard identifies core species requirements, has a core made entirely of one or more of the following wood species: Pseudotsuga menziesii (Douglas Fir), Larix occidentalis (Western Larch), Tsuga heterophylla (Western Hemlock), Abies balsamea (Balsam Pine/Balsam Fir), Abies magnifica (California Red Fir), Abies grandis (Grand Fir), Abies procera (Noble Fir), Abies amabilis (Pacific Silver Fir), Abies concolor (White Fir), Abies lasiocarpa (Subalpine Fir), Picea glauca (White Spruce), Picea engelmannii (Engelmann Spruce), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus banksiana (Jack Pine), Pinus taeda (Loblolly Southern Pine), Pinus palustris (Longleaf Southern Pine), Pinus echinata (Shortleaf Southern Pine), Pinus elliottii (Slash Southern Pine), Pinus serotina (Pond Pine), Pinus resinosa (Red Pine), Pinus virginiana (Virginia Pine), Pinus monticola (Western White Pine), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus contorta (Lodgepole Pine), Pinus strobus (Eastern White Pine), and Pinus lambertiana (Sugar Pine); (2) products which have a face and back veneer of cork; (3) hardwood plywood subject to the antidumping and countervailing duty orders on hardwood plywood from China. 
                        <E T="03">See Certain Hardwood Plywood Products from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order,</E>
                         83 FR 504 (January 4, 2018); and 
                        <E T="03">Certain Hardwood Plywood Products from the People's Republic of China: Countervailing Duty Order,</E>
                         83 FR 513 (January 4, 2018); (4) multilayered wood flooring, as described in the antidumping duty and countervailing duty orders on multilayered wood flooring from China. 
                        <E T="03">See Multilayered Wood Flooring from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order,</E>
                         76 FR 76690 (December 8, 2011); and 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Countervailing Duty Order,</E>
                         76 FR 76693 (December 8, 2011), as amended by 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Amended Antidumping and Countervailing Orders,</E>
                         77 FR 5484 (February 3, 2012); (5) multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo; (6) plywood which has a shape or design other than a flat panel, with the exception of any minor processing described above; (7) products made entirely from bamboo and adhesives (also known as “solid bamboo”); and (8) Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface Film Plywood (PSF), defined as a panel with an “Exterior” or “Exposure 1” bond classification as is defined by The Engineered Wood Association, having an opaque phenolic film layer with a weight equal to or greater than 90g/m3 permanently bonded on both the face and back veneers and an opaque, moisture resistant coating applied to the edges.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are wooden furniture goods that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation is “ready to assemble” (RTA) furniture. RTA furniture is defined as (A) furniture packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes (1) all wooden components (in finished form) required to assemble a finished unit of furniture, (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, adhesive glues) required to assemble a finished unit of furniture, and (3) instructions providing guidance on the assembly of a finished unit of furniture; (B) unassembled bathroom vanity cabinets, having a space for one or more sinks, that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional component shape/size, painted or stained prior to importation, and stacked within a singled shipping package, 
                        <PRTPAGE P="45782"/>
                        except for furniture feet which may be packed and shipped separately; or (C) unassembled bathroom vanity linen closets that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional shape/size, painted or stained prior to importation, and stacked within a single shipping package, except for furniture feet which may be packed and shipped separately.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are kitchen cabinets that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation are RTA kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes: (1) all wooden components (in finished form) required to assemble a finished unit of cabinetry; (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, hooks, adhesive glues) required to assemble a finished unit of cabinetry; and (3) instructions providing guidance on the assembly of a finished unit of cabinetry. Excluded from the scope of the investigation are finished table tops, which are table tops imported in finished form with pre-cut or drilled openings to attach the underframe or legs. The table tops are ready for use at the time of import and require no further finishing or processing. Excluded from the scope of the investigation are finished countertops that are imported in finished form and require no further finishing or manufacturing.
                    </P>
                    <P>Also excluded from the scope of the investigation are laminated veneer lumber (LVL) door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger-jointed or lap-jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer oriented with the grain running perpendicular to the other layers; and (5) top layer machined with a curved edge and one or more profile channels throughout.</P>
                    <P>Also excluded from the scope of the investigation are certain door stiles and rails made of LVL that have a width not to exceed 50 millimeters, a thickness not to exceed 50 millimeters, and a length of less than 2,450 millimeters.</P>
                    <P>Also excluded from the scope of the investigation are finished two-ply products that are made of one ply of wood veneer and one ply of a non-wood veneer material and the two-ply product cannot be glued or otherwise adhered to additional plies or that are made of two plies of wood veneer and have undergone staining, cutting, notching, punching, drilling, or other processing on the surface of the veneer such that the two-ply product cannot be glued or otherwise adhered to additional plies.</P>
                    <P>Imports of hardwood and decorative plywood are primarily entered under the following HTSUS numbers: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4155; 4412.31.4160; 4412.31.4165; 4412.31.4180; 4412.31.4200; 4412.31.4500; 4412.31.4850; 4412.31.4860; 4412.31.4863; 4412.31.4865; 4412.31.4866; 4412.31.4869; 4412.31.4875; 4412.31.4880; 4412.31.5130; 4412.31.5135; 4412.31.5150; 4412.31.5155; 4412.31.5160; 4412.31.5165; 4412.31.5170; 4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5260; 4412.31.5262; 4412.31.5264; 4412.31.5265; 4412.31.5266; 4412.31.5268; 4412.31.5270; 4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 4412.32.2510; 4412.32.2520; 4412.32.2530; 4412.32.2610; 4412.32.2630; 4412.32.3130; 4412.32.3135; 4412.32.3140; 4412.32.3150; 4412.32.3155; 4412.32.3160; 4412.32.3165; 4412.32.3170; 4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.5700; 4412.33.0620; 4412.33.0640; 4412.33.0670; 4412.33.2630; 4412.33.3235; 4412.33.3255; 4412.33.3265; 4412.33.3275; 4412.33.3285; 4412.33.5700; 4412.34.2600; 4412.34.3235; 4412.34.3255; 4412.34.3265; 4412.34.3275; 4412.34.3285; 4412.34.5700; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5050; 4412.41.0000; 4412.42.0000; 4412.51.1030; 4412.51.1050; 4412.51.3111; 4412.51.3121; 4412.51.3141; 4412.51.3161; 4412.51.3175; 4412.51.4100; 4412.52.1030; 4412.52.1050; 4412.52.3121; 4412.52.3161; 4412.52.3175; 4412.52.4100; 4412.91.0600; 4412.91.1020; 4412.91.1030; 4412.91.1040; 4412.91.3110; 4412.91.3120; 4412.91.3130; 4412.91.3140; 4412.91.3150; 4412.91.3160; 4412.91.3170; 4412.91.4100; 4412.92.0700; 4412.92.1120; 4412.92.1130; 4412.92.1140; 4412.92.3120; 4412.92.3150; 4412.92.3160; 4412.92.3170; 4412.92.4200; 4412.94.1020; 4412.94.1030; 4412.94.1040; 4412.94.1050; 4412.94.3110; 4412.94.3111; 4412.94.3120; 4412.94.3121; 4412.94.3130; 4412.94.3131; 4412.94.3140; 4412.94.3141; 4412.94.3150; 4412.94.3160; 4412.94.3161; 4412.94.3170; 4412.94.3171; 4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5115; 4412.99.5701; and 4412.99.5710.</P>
                    <P>Imports of hardwood and decorative plywood may also enter under HTSUS subheadings 4412.10.9000; 4412.94.5100; 4412.94.9500; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500; 9403.90.7005; 9403.90.7010; and 9403.90.7080.</P>
                    <P>The HTSUS codes are provided for the convenience of the U.S. government and customs purposes, and do not define the scope of the investigation. The written description of the merchandise under investigation is dispositive.</P>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14610 Filed 7-20-26; 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-552-851]</DEPDOC>
                <SUBJECT>Hardwood and Decorative Plywood from the Socialist Republic of Vietnam: Final Affirmative Determination of Sales at Less Than Fair Value and Final Negative Determination of Critical Circumstances</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 hardwood and decorative plywood (plywood) from the Socialist Republic of Vietnam (Vietnam) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is October 1, 2024, through March 31, 2025.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable July 21, 2026.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Kabir Archuletta and Robert Shore, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2593 and (202) 482-3261, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On March 2, 2026, Commerce published in the 
                    <E T="04">Federal Register</E>
                     its preliminary affirmative determination in the LFTV investigation of plywood from Vietnam, in which Commerce also postponed the final determination until July 15, 2026.
                    <SU>1</SU>
                    <FTREF/>
                     In May 2026, Commerce issued a post-preliminary analysis in which we computed a post-preliminary dumping margin for Nhat Duy Production and Trading Co., Ltd./Trieu Thai Son Co., Ltd. (collectively, Trieu Thai) based on additional information submitted in its supplemental questionnaire responses.
                    <SU>2</SU>
                    <FTREF/>
                     We invited interested parties to comment on the 
                    <PRTPAGE P="45783"/>
                    <E T="03">Preliminary Determination</E>
                     and post-preliminary analysis.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the Socialist Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Negative Determination of Critical Circumstances, and Postponement of Final Determination and Extension of Provisional Measures,</E>
                         91 FR 10059 (March 2, 2026) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum (PDM).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Post-Preliminary Analysis for the Affirmative Determination in the Less-Than-Fair-Value Investigation of Hardwood and Decorative Plywood from the Socialist Republic of Vietnam,” dated May 13, 2026.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 10062-63; and Memorandum, “Less-Than-Fair-Value Investigation of Hardwood and Decorative Plywood from the Socialist Republic of Vietnam: Establishment of Briefing Schedule,” dated May 14, 2026.
                    </P>
                </FTNT>
                <P>
                    A summary of the events that occurred since the 
                    <E T="03">Preliminary Determination,</E>
                     as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum.
                    <SU>4</SU>
                    <FTREF/>
                     The Issues and Decision Memorandum is a public document and is made available to the public via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System, which is available to registered users at 
                    <E T="03">https://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/frnotices</E>
                    .
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination in the Less-Than-Fair-Value Investigation of Hardwood and Decorative Plywood from the Socialist Republic of Vietnam,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is plywood from Vietnam. 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 the Preliminary Scope Memorandum, we set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope) in scope-specific case briefs or other written comments.
                    <SU>5</SU>
                    <FTREF/>
                     We received scope case and rebuttal briefs from multiple interested parties. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, 
                    <E T="03">see</E>
                     the Final Scope Memorandum.
                    <SU>6</SU>
                    <FTREF/>
                     In the Final Scope Memorandum, Commerce determined that it not is modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice</E>
                    .
                    <E T="51">7</E>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     Appendix I.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Preliminary Scope Decision Memorandum,” dated February 24, 2026 (Preliminary Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Final Scope Decision Memorandum,” dated concurrently with this notice (Final Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China, Indonesia, the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations,</E>
                         90 FR 25225, (June 16, 2025) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    As provided in section 782(i) of the Tariff Act of 1930, as amended (the Act), in June 2026, Commerce verified the sales and factors of production information submitted by Nhat Duy Production and Trading Co., Ltd./Trieu Thai Son Co., Ltd. (collectively, Trieu Thai) 
                    <SU>8</SU>
                    <FTREF/>
                     for use in our final determination. We used standard verification procedures, including an examination of relevant sales and accounting records, and original source documents provided by Trieu Thai.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         In the 
                        <E T="03">Preliminary Determination,</E>
                         Commerce determined that Nhat Duy Production and Trading Co., Ltd. and Trieu Thai Son Co., Ltd. are a single entity, and no party commented on this finding. Accordingly, we continue to treat these companies as a single entity for this final determination. 
                        <E T="03">See Preliminary Determination</E>
                         PDM at 11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Memoranda, “Verification of the Response of Trieu Thai Son Co., Ltd. in the Less-Than-Fair Value Investigation of Hardwood and Decorative Plywood from the Socialist Republic of Vietnam,” dated June 16, 2026; and “Verification of the Responses of Nhat Duy Production and Trading Co., Ltd. in the Less-Than-Fair Value Investigation of Hardwood and Decorative from the Socialist Republic of Vietnam,” dated June 17, 2026.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Analysis of Comments Received</HD>
                <P>
                    All issues raised in the case and rebuttal briefs submitted by interested parties in this investigation are addressed in the Issues and Decision Memorandum. For a list of the issues raised by interested parties and addressed in the Issues and Decision Memorandum, 
                    <E T="03">see</E>
                     Appendix II to this notice.
                </P>
                <HD SOURCE="HD1">Changes Since the Preliminary Determination and Post-Preliminary Analysis</HD>
                <P>
                    Based on Commerce's analysis of the comments received and findings at verification, we made certain changes since the 
                    <E T="03">Preliminary Determination</E>
                     and post-preliminary analysis. For a discussion of these changes, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Negative Determination of Critical Circumstances</HD>
                <P>
                    In accordance with section 733(e)(1) of the Act and 19 CFR 351.206, we preliminarily determined that critical circumstances did not exist with respect to imports of plywood from Vietnam because the conditions set forth in section 773(e)(1)(B) of the Act had not been met (
                    <E T="03">i.e.,</E>
                     U.S. imports did not increase by 15 percent from the base to the comparison period).
                    <SU>10</SU>
                    <FTREF/>
                     We received no comments on this finding. Accordingly, pursuant to section 735(a)(3) of the Act, we find that critical circumstances do not exist with respect to imports of plywood from Vietnam.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 10060.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Separate Rates and the Vietnam-Wide Entity</HD>
                <P>
                    We found that 52 companies, including the two mandatory respondents (
                    <E T="03">i.e.,</E>
                     Junma Phu Tho Co., Ltd. and Trieu Thai), were eligible for a separate rate in the 
                    <E T="03">Preliminary Determination</E>
                    .
                    <SU>11</SU>
                    <FTREF/>
                     No party commented on these determinations. Therefore, we continue to find that Junma, Trieu Thai, and the other 50 non-individually examined companies qualify for a separate rate in this investigation.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See Preliminary Determination</E>
                         PDM at 14-15.
                    </P>
                </FTNT>
                <P>
                    In the 
                    <E T="03">Preliminary Determination,</E>
                     we assigned the estimated weighted-average dumping margin calculated for Trieu Thai as the estimated weighted-average dumping margin for the companies eligible for a separate rate because it was the only calculated rate in this investigation which was not zero, 
                    <E T="03">de minimis,</E>
                     or based entirely on facts available.
                    <SU>12</SU>
                    <FTREF/>
                     We received comments from interested parties with respect to the determination of this separate rate. For this final determination, we continue to assign the estimated weighted-average dumping margin calculated for Trieu Thai as the estimated weighted-average dumping margin for the companies eligible for a separate rate. For further discussion of the separate rate, 
                    <E T="03">see</E>
                     Comment 3 in the Issues and Decision Memorandum.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 10061.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See also Preliminary Determination</E>
                         PDM at 11-15.
                    </P>
                </FTNT>
                <P>
                    Additionally, because we preliminarily did not find that the Vietnam-wide entity failed to cooperate in this investigation, we assigned the estimated weighted-average dumping margin calculated for Trieu Thai as the estimated weighted-average dumping margin for the Vietnam-wide entity.
                    <SU>14</SU>
                    <FTREF/>
                     No party commented on our preliminary finding with respect to the Vietnam-wide entity. Therefore, we also continue to assign the estimated weighted-average dumping margin calculated for Trieu Thai to the Vietnam-wide entity.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 10060-63.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Combination Rates</HD>
                <P>
                    Consistent with the 
                    <E T="03">Initiation Notice,</E>
                    <SU>15</SU>
                    <FTREF/>
                     the 
                    <E T="03">
                        Preliminary 
                        <PRTPAGE P="45784"/>
                        Determination,
                    </E>
                     and Policy Bulletin 05.1,
                    <SU>16</SU>
                     Commerce determined producer/exporter combination rates for companies eligible for a separate rate.
                    <SU>17</SU>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See Initiation Notice,</E>
                         90 FR at 25217.
                    </P>
                    <P>
                        <SU>16</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,” dated 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>
                        .
                        <PRTPAGE/>
                    </P>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See Preliminary Determination</E>
                         PDM at 14.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>Commerce determines that the following estimated weighted-average dumping margins exist:</P>
                <GPOTABLE COLS="4" OPTS="L2,nj,tp0,i1" CDEF="s150,r150,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Producer</CHED>
                        <CHED H="1">Exporter</CHED>
                        <CHED H="1">
                            Weighted-
                            <LI>average </LI>
                            <LI>dumping </LI>
                            <LI>margin </LI>
                            <LI>(percent)</LI>
                        </CHED>
                        <CHED H="1">
                            Cash deposit rate 
                            <LI>(adjusted for</LI>
                            <LI>subsidy </LI>
                            <LI>offsets) </LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Junma Phu Tho Co., Ltd.</ENT>
                        <ENT>Junma Phu Tho Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Nhat Duy Production and Trading Co., Ltd./Trieu Thai Son Co., Ltd.</ENT>
                        <ENT>Nhat Duy Production and Trading Co., Ltd./Trieu Thai Son Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">186 Yen Bai Producing and Trading Co., Ltd.</ENT>
                        <ENT>186 Yen Bai Producing and Trading Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">A-One Timber Co., JSC</ENT>
                        <ENT>A-One Timber Co., JSC</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">An An Plywood Joint Stock Company</ENT>
                        <ENT>An An Plywood Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Chien Linh Ngan Trading and Manufacturing Company Limited</ENT>
                        <ENT>An My Packaging Production Limited Liability Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Ly Hai Linh Company Limited</ENT>
                        <ENT>An My Packaging Production Limited Liability Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Benchmark Industries Company Limited</ENT>
                        <ENT>Benchmark Industries Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bison Advance Technology Panel Joint Stock Company</ENT>
                        <ENT>Bison Advance Technology Panel Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">C-Holding Wood Company Limited</ENT>
                        <ENT>C-Holding Wood Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Country Wood Furniture Industries Co., Ltd.</ENT>
                        <ENT>Country Wood Furniture Industries Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Phuc Khanh Construction Investment and Trading Joint Stock Company</ENT>
                        <ENT>Dai Hong Phat International Trading Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shuang Yuan Plywood Manufacturing Company Limited</ENT>
                        <ENT>Dai Hong Phat International Trading Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet Phat Export Company Limited</ENT>
                        <ENT>Dai Hong Phat International Trading Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet Nam Vinh Phu Wood Company Limited</ENT>
                        <ENT>Dai Hong Phat International Trading Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Eagle Industries Company Limited</ENT>
                        <ENT>Eagle Industries Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Fulin Wood Import Export Company Limited</ENT>
                        <ENT>Fulin Wood Import Export Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Greatwood Hung Yen Joint Stock Company</ENT>
                        <ENT>Greatwood Hung Yen Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Greatwood Joint Stock Company</ENT>
                        <ENT>Greatwood Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Guanyue Wood Co., Ltd.</ENT>
                        <ENT>Guanyue Wood Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Quang Minh Industrial Development Company Limited</ENT>
                        <ENT>Hanbao Industry &amp; Trade Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet North Import Export Trading Company Limited</ENT>
                        <ENT>HLC Vietnam Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HMTD Plywood Company Limited</ENT>
                        <ENT>HMTD Plywood Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hoang Gia Yen Bai Company Limited</ENT>
                        <ENT>Hoang Gia Yen Bai Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Huiling Wood Products (Vietnam) Co., Ltd.</ENT>
                        <ENT>Huiling Wood Products (Vietnam) Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Due Tri Wood Co., Ltd.</ENT>
                        <ENT>Hukon International (Vietnam) Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Eastmark Plywood Company Limited</ENT>
                        <ENT>Hukon International (Vietnam) Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Greenwood Company Limited</ENT>
                        <ENT>Hukon International (Vietnam) Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Guan Wei Wood (Vietnam) Company Limited</ENT>
                        <ENT>Hukon International (Vietnam) Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Kangda Board (Vietnam) Co., Ltd.</ENT>
                        <ENT>Kangda Board (Vietnam) Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Kim Gia Trading and Manufacturing Joint Stock Company</ENT>
                        <ENT>KG Vina Plywood Trading and Import Export Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Minh Long DV TM Joint Stock Company</ENT>
                        <ENT>KG Vina Plywood Trading and Import Export Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Truong Minh Dat One Member Trading Company Limited</ENT>
                        <ENT>KG Vina Plywood Trading and Import Export Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Lam Viet Joint Stock Company</ENT>
                        <ENT>Lam Viet Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Long Viet Plywood Technology Joint Stock Company</ENT>
                        <ENT>Long Viet Plywood Technology Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">MGM Plywood Company Limited</ENT>
                        <ENT>MGM Plywood Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Dinh Ngoc Phat Joint Stock Company</ENT>
                        <ENT>Millennium Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Huy Khanh Co., Ltd.</ENT>
                        <ENT>Millennium Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">My Hanh Wood Processing Company Limited</ENT>
                        <ENT>Millennium Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Thang Long Urban Development and Construction Investment JSC</ENT>
                        <ENT>Millennium Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Woodsland Joint Stock Company</ENT>
                        <ENT>Millennium Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Zhong Sheng Wood Company Limited</ENT>
                        <ENT>Millennium Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Minh Long DV TM Joint Stock Company</ENT>
                        <ENT>Minh Long DV TM Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Nam Huy Trading Limited Company</ENT>
                        <ENT>Nam Huy Trading Limited Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Nam Tien Production and Export Co., Ltd.</ENT>
                        <ENT>Nam Tien Production and Export Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Nhung Xuong Company Limited</ENT>
                        <ENT>Nhung Xuong Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">NN Co., Ltd.</ENT>
                        <ENT>NN Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hong Ngoc Production and Trading Company Limited</ENT>
                        <ENT>Oilriver International Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vietnam Honglin Building Materials Company Limited</ENT>
                        <ENT>Oilriver International Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Phu Thai Dong Nai Company Limited</ENT>
                        <ENT>Phu Thai Dong Nai Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="45785"/>
                        <ENT I="01">Phuc Khanh Construction Investment and Trading Joint Stock Company</ENT>
                        <ENT>Phuc Khanh Construction Investment and Trading Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">New Create Plywood Company Limited</ENT>
                        <ENT>Sagacity Sailing Industry Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tekcom Corporation</ENT>
                        <ENT>Tekcom Corporation</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Thai Hoang Trading and Construction JSC</ENT>
                        <ENT>Thai Hoang Trading and Construction JSC</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Thanh An Wood Production Joint Stock Company</ENT>
                        <ENT>Thanh An Wood Production Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Thanh Truc Manufacture and Trading Company Limited</ENT>
                        <ENT>Thanh Truc Manufacture and Trading Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tien Dat Furniture Corporation</ENT>
                        <ENT>Tien Dat Furniture Corporation</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Tinh Bao Wood Company Limited</ENT>
                        <ENT>Tinh Bao Wood Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet Bac Plywood Limited Liability Company</ENT>
                        <ENT>Viet Bac Plywood Limited Liability Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet Genius Production Trading Company Limited</ENT>
                        <ENT>Viet Genius Production Trading Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet Nam My Gia Wood Company Limited</ENT>
                        <ENT>Viet Nam My Gia Wood Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet Nam Woodbest Company Limited</ENT>
                        <ENT>Viet Nam Woodbest Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Viet Wood Production and Trading Company Limited</ENT>
                        <ENT>Viet Wood Production and Trading Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Dinh Ngoc Phat Joint Stock Company</ENT>
                        <ENT>Wanek Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Huy Khanh Co., Ltd.</ENT>
                        <ENT>Wanek Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">My Hanh Wood Processing Company Limited</ENT>
                        <ENT>Wanek Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Thang Long Urban Development and Construction Investment JSC</ENT>
                        <ENT>Wanek Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Woodsland Joint Stock Company</ENT>
                        <ENT>Wanek Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Zhong Sheng Wood Company Limited</ENT>
                        <ENT>Wanek Furniture Co., Ltd.</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Western Hanoi H2H Forest Products Joint Stock Company</ENT>
                        <ENT>Western Hanoi H2H Forest Products Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Woodsland Joint Stock Company</ENT>
                        <ENT>Woodsland Joint Stock Company</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Yen Bai Plywood Company Limited</ENT>
                        <ENT>Yen Bai Plywood Company Limited</ENT>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Vietnam-Wide Entity</ENT>
                        <ENT/>
                        <ENT>90.12</ENT>
                        <ENT>84.95</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    We intend to disclose the calculations and analysis performed to interested parties in this final determination within five days of its public announcement, or if there is no public announcement, within five days of the date of the publication of this notice in the 
                    <E T="04">Federal Register</E>
                    , in accordance with 19 CFR 351.224(b).
                </P>
                <HD SOURCE="HD1">Continuation of Suspension of Liquidation</HD>
                <P>
                    In accordance with section 735(c)(1)(B) of the Act, we will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all appropriate entries of subject merchandise, as described in Appendix I of this notice, which are entered, or withdrawn from warehouse, for consumption on or after March 2, 2026, the date of publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), Commerce will instruct CBP to require the following cash deposits of estimated antidumping duties for all appropriate entries: (1) for the producer/exporter combinations listed in the table above, the applicable cash deposit rate will be equal to the estimated weighted-average dumping margin listed in the table for that combination, adjusted for subsidy offsets, if appropriate; (2) for all combinations of Vietnamese producers/exporters of the merchandise under consideration that have not established eligibility for separate rates, the cash deposit rate will be equal to the estimated weighted-average dumping margin established for the Vietnam-wide entity, adjusted for subsidy offsets if appropriate; and (3) for all third country exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Vietnam producer/exporter combination (or Vietnam-wide entity) that supplied that third county exporter or, if the producer/exporter combination does not have its own rate, the cash deposit will be the cash deposit rate for the Vietnam-wide entity. These suspension of liquidation instructions and cash deposit requirements will remain in effect until further notice.</P>
                <P>
                    To determine the cash deposit rate, Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic pass-through and export subsidies countervailed in a companion countervailing duty (CVD) proceeding, when CVD provisional measures are in effect. Accordingly, where Commerce has made a final affirmative determination for domestic pass-through or export subsidies, Commerce offsets the estimated weighted-average dumping margin by the appropriate CVD rate. Commerce has continued to adjust the cash deposit rate for export subsidies found in the companion CVD investigation by the appropriate export subsidy rate; however, the suspension of liquidation of provisional measures in the companion CVD case has been discontinued.
                    <SU>18</SU>
                    <FTREF/>
                     Therefore, we are not instructing CBP to collect cash deposits based on the adjusted estimated weighted-average dumping margin for export subsidies at this time.
                    <SU>19</SU>
                    <FTREF/>
                     If the U.S. International Trade Commission (ITC) makes a final affirmative determination of injury due to both dumping and subsidies, then the cash deposit rate will be revised effective on the date of publication of the ITC's final affirmative determination in the 
                    <E T="04">Federal Register</E>
                     to be the company-specific 
                    <PRTPAGE P="45786"/>
                    estimated weighted-average dumping margin adjusted for export subsidies.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Determination of Critical Circumstances, and Alignment of Final Determination with Final Antidumping Duty Determination,</E>
                         91 FR 2741 (January 22, 2026); 
                        <E T="03">see also</E>
                         section 703(d) of the Act, which states that the provisional measures may not be in effect for more than four months, which in the companion CVD case is 120 days after the publication of the preliminary determination, or May 22, 2026.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">ITC Notification</HD>
                <P>In accordance with section 735(d) of the Act, we will notify the ITC of our final affirmative determination of sales at LTFV. Because Commerce's final determination is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of plywood from Vietnam. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all cash deposits will be refunded or canceled, and suspension of liquidation will be lifted. If the ITC determines that such injury does exist, Commerce will issue an antidumping duty order directing CBP to assess, upon further instruction by Commerce, antidumping duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the section, “Continuation of Suspension of Liquidation.”</P>
                <HD SOURCE="HD1">Administrative Protective Order (APO)</HD>
                <P>This notice will serve as the final reminder to parties subject to an APO of their responsibility concerning the 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 the terms of an APO is a violation which is subject to sanction.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination and notice are issued and published pursuant to sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).</P>
                <SIG>
                    <DATED> Dated: July 15, 2026.</DATED>
                    <NAME>Christopher Abbott,</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 merchandise covered by the investigation is hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this investigation, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers in combination with a core or without a core. The veneers and, if present, the core are glued or otherwise bonded together. A hardwood and decorative plywood panel must have at least either the face or back veneer composed of one or more species of hardwood, softwood, or bamboo, regardless of any surface coverings. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2024 (including any revisions to that standard).</P>
                    <P>For purposes of the investigation a “veneer” is a slice of wood regardless of thickness which is cut, sliced or sawed from a log, bolt, or flitch. The face and back veneers are the outermost veneer of wood irrespective of additional surface coatings or covers as described below. The core of hardwood and decorative plywood (for those products that include a core) consists of the layer or layers of one or more material(s) that are situated between the face and back veneers. The core may be composed of a range of materials, including but not limited to hardwood, softwood, particleboard, or medium density fiberboard (MDF).</P>
                    <P>All hardwood and decorative plywood is included within the scope of the investigation regardless of whether or not the face and/or back veneers are surface coated or covered and whether or not such surface coating(s) or covers obscures the grain, textures, or markings of the wood. Examples of surface coatings and covers include, but are not limited to: ultra violet light cured polyurethanes; oil or oil-modified or water-based polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; paper; aluminum; high pressure laminate; MDF; medium density overlay (MDO); and phenolic film. Additionally, the face veneer of hardwood and decorative plywood may be sanded; smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing.</P>
                    <P>All hardwood and decorative plywood is included within the scope even if it is trimmed; cut-to-size; notched; punched; drilled; or has undergone other forms of minor processing. All hardwood and decorative plywood is included within the scope of the investigation, without regard to dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width, or length). However, the most common panel sizes of hardwood and decorative plywood are 1219 × 1829 mm (48 × 72 inches), 1219 × 120 inches). Subject merchandise also includes hardwood and decorative plywood that has been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.</P>
                    <P>
                        The scope of the investigation excludes the following items: (1) structural plywood (also known as “industrial plywood” or “industrial panels”) that (a) is certified, manufactured, and stamped to meet U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), including, but not limited to, the “bond performance” requirements and the performance criteria detailed in U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and (b) where the relevant standard identifies core species requirements, has a core made entirely of one or more of the following wood species: Pseudotsuga menziesii (Douglas Fir), Larix occidentalis (Western Larch), Tsuga heterophylla (Western Hemlock), Abies balsamea (Balsam Pine/Balsam Fir), Abies magnifica (California Red Fir), Abies grandis (Grand Fir), Abies procera (Noble Fir), Abies amabilis (Pacific Silver Fir), Abies concolor (White Fir), Abies lasiocarpa (Subalpine Fir), Picea glauca (White Spruce), Picea engelmannii (Engelmann Spruce), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus banksiana (Jack Pine), Pinus taeda (Loblolly Southern Pine), Pinus palustris (Longleaf Southern Pine), Pinus echinata (Shortleaf Southern Pine), Pinus elliottii (Slash Southern Pine), Pinus serotina (Pond Pine), Pinus resinosa (Red Pine), Pinus virginiana (Virginia Pine), Pinus monticola (Western White Pine), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus contorta (Lodgepole Pine), Pinus strobus (Eastern White Pine), and Pinus lambertiana (Sugar Pine); (2) products which have a face and back veneer of cork; (3) hardwood plywood subject to the antidumping and countervailing duty orders on hardwood plywood from China. 
                        <E T="03">See Certain Hardwood Plywood Products from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order,</E>
                         83 FR 504 (January 4, 2018); and 
                        <E T="03">Certain Hardwood Plywood Products from the People's Republic of China: Countervailing Duty Order,</E>
                         83 FR 513 (January 4, 2018); (4) multilayered wood flooring, as described in the antidumping duty and countervailing duty orders on multilayered wood flooring from China. 
                        <E T="03">See Multilayered Wood Flooring from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order,</E>
                         76 FR 76690 (December 8, 2011); and 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Countervailing Duty Order,</E>
                         76 FR 76693 (December 8, 2011), as amended by 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Amended Antidumping and Countervailing Orders,</E>
                         77 FR 5484 (February 3, 2012); (5) multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo; (6) plywood which has a shape or design other than a flat panel, with the exception of any minor processing described above; (7) products 
                        <PRTPAGE P="45787"/>
                        made entirely from bamboo and adhesives (also known as “solid bamboo”); and (8) Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface Film Plywood (PSF), defined as a panel with an “Exterior” or “Exposure 1” bond classification as is defined by The Engineered Wood Association, having an opaque phenolic film layer with a weight equal to or greater than 90g/m3 permanently bonded on both the face and back veneers and an opaque, moisture resistant coating applied to the edges.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are wooden furniture goods that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation is “ready to assemble” (RTA) furniture. RTA furniture is defined as (A) furniture packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes (1) all wooden components (in finished form) required to assemble a finished unit of furniture, (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, adhesive glues) required to assemble a finished unit of furniture, and (3) instructions providing guidance on the assembly of a finished unit of furniture; (B) unassembled bathroom vanity cabinets, having a space for one or more sinks, that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional component shape/size, painted or stained prior to importation, and stacked within a singled shipping package, except for furniture feet which may be packed and shipped separately; or (C) unassembled bathroom vanity linen closets that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional shape/size, painted or stained prior to importation, and stacked within a single shipping package, except for furniture feet which may be packed and shipped separately.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are kitchen cabinets that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation are RTA kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes: (1) all wooden components (in finished form) required to assemble a finished unit of cabinetry; (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, hooks, adhesive glues) required to assemble a finished unit of cabinetry; and (3) instructions providing guidance on the assembly of a finished unit of cabinetry. Excluded from the scope of the investigation are finished table tops, which are table tops imported in finished form with pre-cut or drilled openings to attach the underframe or legs. The table tops are ready for use at the time of import and require no further finishing or processing. Excluded from the scope of the investigation are finished countertops that are imported in finished form and require no further finishing or manufacturing.
                    </P>
                    <P>Also excluded from the scope of the investigation are laminated veneer lumber (“LVL”) door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger-jointed or lap-jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer oriented with the grain running perpendicular to the other layers; and (5) top layer machined with a curved edge and one or more profile channels throughout.</P>
                    <P>Also excluded from the scope of this investigation are certain door stiles and rails made of LVL that have a width not to exceed 50 millimeters, a thickness not to exceed 50 millimeters, and a length of less than 2,450 millimeters.</P>
                    <P>Also excluded from the scope of this investigation are finished two-ply products that are made of one ply of wood veneer and one ply of a non-wood veneer material and the two-ply product cannot be glued or otherwise adhered to additional plies or that are made of two plies of wood veneer and have undergone staining, cutting, notching, punching, drilling, or other processing on the surface of the veneer such that the two-ply product cannot be glued or otherwise adhered to additional plies.</P>
                    <P>Imports of hardwood and decorative plywood are primarily entered under the following HTSUS numbers: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4155; 4412.31.4160; 4412.31.4165; 4412.31.4180; 4412.31.4200; 4412.31.4500; 4412.31.4850; 4412.31.4860; 4412.31.4863; 4412.31.4865; 4412.31.4866; 4412.31.4869; 4412.31.4875; 4412.31.4880; 4412.31.5130; 4412.31.5135; 4412.31.5150; 4412.31.5155; 4412.31.5160; 4412.31.5165; 4412.31.5170; 4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5260; 4412.31.5262; 4412.31.5264; 4412.31.5265; 4412.31.5266; 4412.31.5268; 4412.31.5270; 4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 4412.32.2510; 4412.32.2520; 4412.32.2530; 4412.32.2610; 4412.32.2630; 4412.32.3130; 4412.32.3135; 4412.32.3140; 4412.32.3150; 4412.32.3155; 4412.32.3160; 4412.32.3165; 4412.32.3170; 4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.5700; 4412.33.0620; 4412.33.0640; 4412.33.0670; 4412.33.2630; 4412.33.3235; 4412.33.3255; 4412.33.3265; 4412.33.3275; 4412.33.3285; 4412.33.5700; 4412.34.2600; 4412.34.3235; 4412.34.3255; 4412.34.3265; 4412.34.3275; 4412.34.3285; 4412.34.5700; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5050; 4412.41.0000; 4412.42.0000; 4412.51.1030; 4412.51.1050; 4412.51.3111; 4412.51.3121; 4412.51.3141; 4412.51.3161; 4412.51.3175; 4412.51.4100; 4412.52.1030; 4412.52.1050; 4412.52.3121; 4412.52.3161; 4412.52.3175; 4412.52.4100; 4412.91.0600; 4412.91.1020; 4412.91.1030; 4412.91.1040; 4412.91.3110; 4412.91.3120; 4412.91.3130; 4412.91.3140; 4412.91.3150; 4412.91.3160; 4412.91.3170; 4412.91.4100; 4412.92.0700; 4412.92.1120; 4412.92.1130; 4412.92.1140; 4412.92.3120; 4412.92.3150; 4412.92.3160; 4412.92.3170; 4412.92.4200; 4412.94.1020; 4412.94.1030; 4412.94.1040; 4412.94.1050; 4412.94.3110; 4412.94.3111; 4412.94.3120; 4412.94.3121; 4412.94.3130; 4412.94.3131; 4412.94.3140; 4412.94.3141; 4412.94.3150; 4412.94.3160; 4412.94.3161; 4412.94.3170; 4412.94.3171; 4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5115; 4412.99.5701; and 4412.99.5710.</P>
                    <P>Imports of hardwood and decorative plywood may also enter under HTSUS subheadings 4412.10.9000; 4412.94.5100; 4412.94.9500; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500; 9403.90.7005; 9403.90.7010; and 9403.90.7080.</P>
                    <P>The HTSUS codes are provided for the convenience of the U.S. government and customs purposes, and do not define the scope of the investigation. The written description of the merchandise under investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</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. Changes Since the 
                        <E T="03">Preliminary Determination</E>
                         and Post-Preliminary Analysis
                    </FP>
                    <FP SOURCE="FP-2">IV. Discussion of the Issues</FP>
                    <FP SOURCE="FP1-2">Comment 1: Calculation of a Final Rate for Junma</FP>
                    <FP SOURCE="FP1-2">Comment 2: Selection of a Final Rate for Junma</FP>
                    <FP SOURCE="FP1-2">Comment 3: Rate Assigned to the Separate Rate Companies</FP>
                    <FP SOURCE="FP1-2">Comment 4: Economic Comparability of the Philippines to Vietnam</FP>
                    <FP SOURCE="FP1-2">Comment 5: Selection of the Primary Surrogate Country</FP>
                    <FP SOURCE="FP1-2">Comment 6: Selection of Surrogate Values (SVs) for Certain Factors of Production (FOPs)</FP>
                    <FP SOURCE="FP1-2">Comment 7: Other SV Issues</FP>
                    <FP SOURCE="FP-2">V. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14614 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="45788"/>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-560-845]</DEPDOC>
                <SUBJECT>Hardwood and Decorative Plywood From Indonesia: Final 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) determines that countervailable subsidies are being provided to producers and exporters of hardwood and decorative plywood (plywood) from Indonesia. The period of investigation (POI) is January 1, 2024, through December 31, 2024.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable July 21, 2026.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Benito Ballesteros or Samuel Evans, AD/CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2420 or (202) 482-2420, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On January 22, 2026, Commerce published the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                     and invited interested parties to comment.
                    <SU>1</SU>
                    <FTREF/>
                     In accordance with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce aligned the final countervailing duty (CVD) determination with the final determination in the less-than-fair-value investigation of plywood from Indonesia.
                    <SU>2</SU>
                    <FTREF/>
                     On April 29, 2026, we issued a post-preliminary determination regarding certain subsidy programs.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from Indonesia: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination with Final Antidumping Duty Determination,</E>
                         91 FR 2730 (January 22, 2026) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">Id.,</E>
                         91 FR at 2731.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Post-Preliminary Analysis,” dated April 29, 2026.
                    </P>
                </FTNT>
                <P>
                    For a complete discussion of the events that followed the 
                    <E T="03">Preliminary Determination, see</E>
                     the Issues and Decision Memorandum.
                    <SU>4</SU>
                    <FTREF/>
                     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), which is available to registered users at 
                    <E T="03">https://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/frnotices.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Hard Empty Capsules from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is plywood from Indonesia. 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 the Preliminary Scope Memorandum, we set aside a period of time for parties to raise issues regarding product coverage (
                    <E T="03">i.e.,</E>
                     scope) in scope-specific case briefs or other written comments.
                    <SU>5</SU>
                    <FTREF/>
                     We received scope case and rebuttal briefs from multiple interested parties. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, 
                    <E T="03">see</E>
                     the Final Scope Memorandum.
                    <SU>6</SU>
                    <FTREF/>
                     In the Final Scope Memorandum, Commerce determined that it not is modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                    <SU>7</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     Appendix I.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Preliminary Scope Decision Memorandum,” dated February 24, 2026 (Preliminary Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Hardwood and Decorative Plywood from Indonesia, the People's Republic of China, and the Socialist Republic of Vietnam: Final Scope Decision Memorandum,” dated concurrently with this notice (Final Scope Memorandum).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See Hardwood and Decorative Plywood from the People's Republic of China, Indonesia, the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations,</E>
                         90 FR 25225, (June 16, 2025) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    As provided in section 782(i) of the Act, in March 2026, Commerce verified the information reported by the Government of Indonesia, PT. Sengon Indah Mas (Sengon) and PT. Wijaya Cahaya Timber Tbk. (WCT) for use in our final determination. We used standard verification procedures, including an examination of relevant accounting records and original source documents provided at verification.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Memoranda, “Verification of the Questionnaire Responses of the Government of Indonesia,” dated April 22, 2026; “Verification of the Questionnaire Responses of PT. Wijaya Cahaya Timber Tbk. and Affiliates,” dated May 21, 2026; and “Verification of the Questionnaire Responses of PT. Sengon Indah Mas,” dated May 22, 2026.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Analysis of Subsidy Programs and Comments Received</HD>
                <P>
                    The subsidy programs under investigation and the issues raised in the case and rebuttal briefs submitted by interested parties in this investigation are discussed in the Issues and Decision Memorandum. For a list of the issues raised by interested parties and addressed in the Issues and Decision Memorandum, 
                    <E T="03">see</E>
                     Appendix II.
                </P>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce 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>9</SU>
                    <FTREF/>
                     For a full description of the methodology underlying our final determination, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum. In making this final determination, Commerce relied, in part, on facts otherwise available, including with an adverse inference, pursuant to sections 776(a) and (b) of the Act. For further discussion of our application of adverse facts available, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         sections 771(5)(B) and (D) of the Act regarding financial contribution; 
                        <E T="03">see also</E>
                         section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Changes Since the Preliminary Determination</HD>
                <P>
                    Based on our review and analysis of the information examined at verification and comments received from interested parties, we made changes to our subsidy rate calculations for Sengon and WCT. For a discussion of these changes, 
                    <E T="03">see</E>
                     the Issues and Decision Memorandum.
                </P>
                <HD SOURCE="HD1">All-Others Rate</HD>
                <P>
                    Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and 
                    <E T="03">de minimis</E>
                     countervailable subsidy rates, and any rates determined entirely under section 776 of the Act.
                </P>
                <P>
                    In this investigation, we continue to calculate individual total net countervailable subsidy rates for Sengon and WCT that are not zero, 
                    <E T="03">de minimis,</E>
                     or based entirely on facts otherwise available. Therefore, we continue to calculate the all-others rate using a 
                    <PRTPAGE P="45789"/>
                    weighted average of the individual estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged sales value for its exports to the United States of subject merchandise,
                    <SU>10</SU>
                    <FTREF/>
                     in accordance with section 705(c)(5)(A)(i) of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         With two respondents under examination, Commerce normally calculates: (A) a weighted-average of the estimated subsidy rates calculated for the examined respondents; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company's publicly-ranged U.S. sale quantities for the merchandise under consideration. Commerce then compares (B) and (C) to (A) and selects the rate closest to (A) as the most appropriate rate for all other producers and exporters. 
                        <E T="03">See, e.g., Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part,</E>
                         75 FR 53661, 53663 (September 1, 2010); 
                        <E T="03">see also Forged Steel Fluid End Blocks from Italy: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination with Final Antidumping Duty Determination,</E>
                         85 FR 31460, 31461 (May 26, 2020), unchanged in 
                        <E T="03">Forged Steel Fluid End Blocks from Italy: Final Affirmative Countervailing Duty Determination,</E>
                         85 80022, 80023 (December 11, 2020).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Determination</HD>
                <P>Commerce determines that the following estimated countervailable subsidy rates exist for the period January 1, 2024, through December 31, 2024:</P>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s50,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Company</CHED>
                        <CHED H="1">
                            Subsidy rate
                            <LI>(percent</LI>
                            <LI>
                                <E T="03">ad valorem</E>
                                )
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">PT. Mustika Buana Sejahtera</ENT>
                        <ENT>* 128.66</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            PT. Sengon Indah Mas 
                            <SU>11</SU>
                        </ENT>
                        <ENT>4.22</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            PT. Wijaya Cahaya Timber Tbk.
                            <SU>12</SU>
                        </ENT>
                        <ENT>58.39</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others</ENT>
                        <ENT>40.87</ENT>
                    </ROW>
                    <TNOTE>* Rate is based on facts available with adverse inferences.</TNOTE>
                </GPOTABLE>
                <HD SOURCE="HD1">
                    Disclosure
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         As discussed in the Issues and Decision Memorandum, Commerce has found Sengon to be cross owned with PT. Java Wood Industri.
                    </P>
                    <P>
                        <SU>12</SU>
                         As discussed in the Issues and Decision Memorandum, Commerce has found the following companies to be cross-owned with WCT: PT Wijaya Triutama Plywood Industri; PT Fortuna Anugrah Sumber Terpadu; PT Semangat Maju Sentosa; PT Mandiri Sejahtera Jaya Abadi; PT Maju Aman Selalu; and Company A. Because WCT claimed business proprietary treatment for the name of Company A, we cannot disclose it here. For further information, 
                        <E T="03">see</E>
                         WCT's Letter, WCT Response to Certain Portions of Supplemental Questionnaires,” dated September 5, 2025, at 4.
                    </P>
                </FTNT>
                <P>
                    Commerce intends to disclose its calculations performed to interested parties in this final determination within five days of its public announcement or, if there is no public announcement, within five days of the date of the publication of this notice in the 
                    <E T="04">Federal Register</E>
                    , in accordance with 19 CFR 351.224(b).
                </P>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    As a result of our 
                    <E T="03">Preliminary Determination,</E>
                     and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise from Indonesia that were entered, or withdrawn from warehouse, for consumption, on or after January 22, 2026, the date of the publication of the 
                    <E T="03">Preliminary Determination</E>
                     in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>13</SU>
                    <FTREF/>
                     In accordance with section 703(d) of the Act, we instructed CBP to discontinue the suspension of liquidation of all entries of subject merchandise entered, or withdrawn from warehouse, on or after May 22, 2026, but to continue the suspension of liquidation of all entries of subject merchandise on or before May 21, 2026.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See Preliminary Determination,</E>
                         91 FR at 2730.
                    </P>
                </FTNT>
                <P>If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a CVD order, reinstate the suspension of liquidation under section 706(a) of the Act, and require a cash deposit of estimated countervailing duties for entries of subject merchandise in the amounts indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or cancelled.</P>
                <HD SOURCE="HD1">ITC Notification</HD>
                <P>In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final affirmative determination that countervailable subsidies are being provided to producers and exporters of plywood from Indonesia. As Commerce's final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of plywood from Indonesia. In addition, we are making available to the ITC all non-privileged and non-proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance.</P>
                <P>If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated, and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, countervailing duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the “Suspension of Liquidation” section.</P>
                <HD SOURCE="HD1">Administrative Protective Order</HD>
                <P>This notice will serve as the final reminder to parties subject to an APO of their responsibility concerning the 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 violation which is subject to sanction.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination is issued and published in accordance with sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).</P>
                <SIG>
                    <DATED> Dated: July 15, 2026.</DATED>
                    <NAME>Christopher Abbott,</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 merchandise covered by the investigation is hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this investigation, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers in combination with a core or without a core. The veneers and, if present, the core are glued or otherwise bonded together. A hardwood and decorative plywood panel must have at least either the face or back veneer composed of one or more species of hardwood, softwood, or bamboo, regardless of any surface coverings. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2024 (including any revisions to that standard).</P>
                    <P>
                        For purposes of the investigation a “veneer” is a slice of wood regardless of thickness which is cut, sliced or sawed from a log, bolt, or flitch. The face and back 
                        <PRTPAGE P="45790"/>
                        veneers are the outermost veneer of wood irrespective of additional surface coatings or covers as described below. The core of hardwood and decorative plywood (for those products that include a core) consists of the layer or layers of one or more material(s) that are situated between the face and back veneers. The core may be composed of a range of materials, including but not limited to hardwood, softwood, particleboard, or medium density fiberboard (MDF).
                    </P>
                    <P>All hardwood and decorative plywood is included within the scope of the investigation regardless of whether or not the face and/or back veneers are surface coated or covered and whether or not such surface coating(s) or covers obscures the grain, textures, or markings of the wood. Examples of surface coatings and covers include, but are not limited to: ultra violet light cured polyurethanes; oil or oil-modified or water-based polyurethanes; wax; epoxy-ester finishes; moisture-cured urethanes; paints; stains; paper; aluminum; high pressure laminate; MDF; medium density overlay (MDO); and phenolic film. Additionally, the face veneer of hardwood and decorative plywood may be sanded; smoothed or given a “distressed” appearance through such methods as hand-scraping or wire brushing.</P>
                    <P>All hardwood and decorative plywood is included within the scope even if it is trimmed; cut-to size; notched; punched; drilled; or has undergone other forms of minor processing. All hardwood and decorative plywood is included within the scope of the investigation, without regard to dimension (overall thickness, thickness of face veneer, thickness of back veneer, thickness of core, thickness of inner veneers, width, or length). However, the most common panel sizes of hardwood and decorative plywood are 1219 x 1829 mm (48 x 72 inches), 1219 x 2438 mm (48 x 96 inches), and 1219 x 3048 mm (48 x 120 inches). Subject merchandise also includes hardwood and decorative plywood that has been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope product.</P>
                    <P>
                        The scope of the investigation excludes the following items: (1) structural plywood (also known as “industrial plywood” or “industrial panels”) that (a) is certified, manufactured, and stamped to meet U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), including, but not limited to, the “bond performance” requirements and the performance criteria detailed in U.S. Products Standard PS 1-09, PS 2-09, PS-1-22, PS 2-10, or PS 2-18 for Structural Plywood (including any revisions to that standard or any substantially equivalent international standard intended for structural plywood), and (b) where the relevant standard identifies core species requirements, has a core made entirely of one or more of the following wood species: Pseudotsuga menziesii (Douglas Fir), Larix occidentalis (Western Larch), Tsuga heterophylla (Western Hemlock), Abies balsamea (Balsam Pine/Balsam Fir), Abies magnifica (California Red Fir), Abies grandis (Grand Fir), Abies procera (Noble Fir), Abies amabilis (Pacific Silver Fir), Abies concolor (White Fir), Abies lasiocarpa (Subalpine Fir), Picea glauca (White Spruce), Picea engelmannii (Engelmann Spruce), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus banksiana (Jack Pine), Pinus taeda (Loblolly Southern Pine), Pinus palustris (Longleaf Southern Pine), Pinus echinata (Shortleaf Southern Pine), Pinus elliottii (Slash Southern Pine), Pinus serotina (Pond Pine), Pinus resinosa (Red Pine), Pinus virginiana (Virginia Pine), Pinus monticola (Western White Pine), Picea mariana (Black Spruce), Picea rubens (Red Spruce), Picea sitchensis (Sitka Spruce), Pinus contorta (Lodgepole Pine), Pinus strobus (Eastern White Pine), and Pinus lambertiana (Sugar Pine); (2) products which have a face and back veneer of cork; (3) hardwood plywood subject to the antidumping and countervailing duty orders on hardwood plywood from China. 
                        <E T="03">See Certain Hardwood Plywood Products from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order,</E>
                         83 FR 504 (January 4, 2018); and 
                        <E T="03">Certain Hardwood Plywood Products from the People's Republic of China: Countervailing Duty Order,</E>
                         83 FR 513 (January 4, 2018); (4) multilayered wood flooring, as described in the antidumping duty and countervailing duty orders on multilayered wood flooring from China. 
                        <E T="03">See Multilayered Wood Flooring from the People's Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order,</E>
                         76 FR 76690 (December 8, 2011); and 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Countervailing Duty Order,</E>
                         76 FR 76693 (December 8, 2011), as amended by 
                        <E T="03">Multilayered Wood Flooring from the People's Republic of China: Amended Antidumping and Countervailing Orders,</E>
                         77 FR 5484 (February 3, 2012); (5) multilayered wood flooring with a face veneer of bamboo or composed entirely of bamboo; (6) plywood which has a shape or design other than a flat panel, with the exception of any minor processing described above; (7) products made entirely from bamboo and adhesives (also known as “solid bamboo”); and (8) Phenolic Film Faced Plyform (PFF), also known as Phenolic Surface Film Plywood (PSF), defined as a panel with an “Exterior” or “Exposure 1” bond classification as is defined by The Engineered Wood Association, having an opaque phenolic film layer with a weight equal to or greater than 90g/m3 permanently bonded on both the face and back veneers and an opaque, moisture resistant coating applied to the edges.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are wooden furniture goods that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation is “ready to assemble” (RTA) furniture. RTA furniture is defined as (A) furniture packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes (1) all wooden components (in finished form) required to assemble a finished unit of furniture, (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, adhesive glues) required to assemble a finished unit of furniture, and (3) instructions providing guidance on the assembly of a finished unit of furniture; (B) unassembled bathroom vanity cabinets, having a space for one or more sinks, that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional component shape/size, painted or stained prior to importation, and stacked within a singled shipping package, except for furniture feet which may be packed and shipped separately; or (C) unassembled bathroom vanity linen closets that are imported with all unassembled hardwood and hardwood plywood components that have been cut-to-final dimensional shape/size, painted or stained prior to importation, and stacked within a single shipping package, except for furniture feet which may be packed and shipped separately.
                    </P>
                    <P>
                        Also excluded from the scope of the investigation are kitchen cabinets that, at the time of importation, are fully assembled and are ready for their intended uses. Also excluded from the scope of the investigation are RTA kitchen cabinets. RTA kitchen cabinets are defined as kitchen cabinets packaged for sale for ultimate purchase by an end-user that, at the time of importation, includes: (1) all wooden components (in finished form) required to assemble a finished unit of cabinetry; (2) all accessory parts (
                        <E T="03">e.g.,</E>
                         screws, washers, dowels, nails, handles, knobs, hooks, adhesive glues) required to assemble a finished unit of cabinetry; and (3) instructions providing guidance on the assembly of a finished unit of cabinetry. Excluded from the scope of the investigation are finished table tops, which are table tops imported in finished form with pre-cut or drilled openings to attach the underframe or legs. The table tops are ready for use at the time of import and require no further finishing or processing. Excluded from the scope of the investigation are finished countertops that are imported in finished form and require no further finishing or manufacturing. Also excluded from the scope of the investigation are laminated veneer lumber (“LVL”) door and window components with (1) a maximum width of 44 millimeters, a thickness from 30 millimeters to 72 millimeters, and a length of less than 2413 millimeters, (2) water boiling point exterior adhesive, (3) a modulus of elasticity of 1,500,000 pounds per square inch or higher, (4) finger-jointed or lap-jointed core veneer with all layers oriented so that the grain is running parallel or with no more than 3 dispersed layers of veneer oriented with the grain running perpendicular to the other layers; and (5) top layer machined with a curved edge and one or more profile channels throughout.
                    </P>
                    <P>
                        Also excluded from the scope of this investigation are certain door stiles and rails made of LVL that have a width not to exceed 
                        <PRTPAGE P="45791"/>
                        50 millimeters, a thickness not to exceed 50 millimeters, and a length of less than 2,450 millimeters.
                    </P>
                    <P>Also excluded from the scope of this investigation are finished two-ply products that are made of one ply of wood veneer and one ply of a non-wood veneer material and the two-ply product cannot be glued or otherwise adhered to additional plies or that are made of two plies of wood veneer and have undergone staining, cutting, notching, punching, drilling, or other processing on the surface of the veneer such that the two-ply product cannot be glued or otherwise adhered to additional plies.</P>
                    <P>Imports of hardwood and decorative plywood are primarily entered under the following HTSUS numbers: 4412.10.0500; 4412.31.0520; 4412.31.0540; 4412.31.0560; 4412.31.0620; 4412.31.0640; 4412.31.0660; 4412.31.2510; 4412.31.2520; 4412.31.2610; 4412.31.2620; 4412.31.4040; 4412.31.4050; 4412.31.4060; 4412.31.4070; 4412.31.4080; 4412.31.4140; 4412.31.4150; 4412.31.4155; 4412.31.4160; 4412.31.4165; 4412.31.4180; 4412.31.4200; 4412.31.4500; 4412.31.4850; 4412.31.4860; 4412.31.4863; 4412.31.4865; 4412.31.4866; 4412.31.4869; 4412.31.4875; 4412.31.4880; 4412.31.5130; 4412.31.5135; 4412.31.5150; 4412.31.5155; 4412.31.5160; 4412.31.5165; 4412.31.5170; 4412.31.5175; 4412.31.5235; 4412.31.5255; 4412.31.5260; 4412.31.5262; 4412.31.5264; 4412.31.5265; 4412.31.5266; 4412.31.5268; 4412.31.5270; 4412.31.5275; 4412.31.6000; 4412.31.6100; 4412.31.9100; 4412.31.9200; 4412.32.0520; 4412.32.0540; 4412.32.0560; 4412.32.0570; 4412.32.0620; 4412.32.0640; 4412.32.0670; 4412.32.2510; 4412.32.2520; 4412.32.2530; 4412.32.2610; 4412.32.2630; 4412.32.3130; 4412.32.3135; 4412.32.3140; 4412.32.3150; 4412.32.3155; 4412.32.3160; 4412.32.3165; 4412.32.3170; 4412.32.3175; 4412.32.3185; 4412.32.3235; 4412.32.3255; 4412.32.3265; 4412.32.3275; 4412.32.3285; 4412.32.5600; 4412.32.5700; 4412.33.0620; 4412.33.0640; 4412.33.0670; 4412.33.2630; 4412.33.3235; 4412.33.3255; 4412.33.3265; 4412.33.3275; 4412.33.3285; 4412.33.5700; 4412.34.2600; 4412.34.3235; 4412.34.3255; 4412.34.3265; 4412.34.3275; 4412.34.3285; 4412.34.5700; 4412.39.4051; 4412.39.4052; 4412.39.4059; 4412.39.4061; 4412.39.4062; 4412.39.4069; 4412.39.5050; 4412.41.0000; 4412.42.0000; 4412.51.1030; 4412.51.1050; 4412.51.3111; 4412.51.3121; 4412.51.3141; 4412.51.3161; 4412.51.3175; 4412.51.4100; 4412.52.1030; 4412.52.1050; 4412.52.3121; 4412.52.3161; 4412.52.3175; 4412.52.4100; 4412.91.0600; 4412.91.1020; 4412.91.1030; 4412.91.1040; 4412.91.3110; 4412.91.3120; 4412.91.3130; 4412.91.3140; 4412.91.3150; 4412.91.3160; 4412.91.3170; 4412.91.4100; 4412.92.0700; 4412.92.1120; 4412.92.1130; 4412.92.1140; 4412.92.3120; 4412.92.3150; 4412.92.3160; 4412.92.3170; 4412.92.4200; 4412.94.1020; 4412.94.1030; 4412.94.1040; 4412.94.1050; 4412.94.3110; 4412.94.3111; 4412.94.3120; 4412.94.3121; 4412.94.3130; 4412.94.3131; 4412.94.3140; 4412.94.3141; 4412.94.3150; 4412.94.3160; 4412.94.3161; 4412.94.3170; 4412.94.3171; 4412.94.3175; 4412.94.4100; 4412.99.0600; 4412.99.1020; 4412.99.1030; 4412.99.1040; 4412.99.3110; 4412.99.3120; 4412.99.3130; 4412.99.3140; 4412.99.3150; 4412.99.3160; 4412.99.3170; 4412.99.4100; 4412.99.5100; 4412.99.5115; 4412.99.5701; and 4412.99.5710.</P>
                </EXTRACT>
                <EXTRACT>
                    <P>Imports of hardwood and decorative plywood may also enter under HTSUS subheadings 4412.10.9000; 4412.94.5100; 4412.94.9500; 4412.99.6000; 4412.99.7000; 4412.99.8000; 4412.99.9000; 4412.99.9500; 9403.90.7005; 9403.90.7010; and 9403.90.7080. The HTSUS codes are provided for the convenience of the U.S. government and customs purposes, and do not define the scope of the investigation. The written description of the merchandise under investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</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. Use of Facts Available and Adverse Inferences</FP>
                    <FP SOURCE="FP-2">IV. Upstream Subsidy Allegation</FP>
                    <FP SOURCE="FP-2">V. Subsidies Valuation</FP>
                    <FP SOURCE="FP-2">VI. Analysis of Programs</FP>
                    <FP SOURCE="FP-2">VII. Discussion of the Issues</FP>
                    <FP SOURCE="FP1-2">Comment 1: Whether Transnational Subsidies Are Countervailable</FP>
                    <FP SOURCE="FP1-2">Comment 2: Whether to Apply Facts Available to Find that Transnational Subsidies Provide a Financial Contribution and Are Specific</FP>
                    <FP SOURCE="FP1-2">Comment 3: Whether to Adjust the Logs Benchmark</FP>
                    <FP SOURCE="FP1-2">Comment 4: Whether to Adjust the Veneers Benchmark</FP>
                    <FP SOURCE="FP1-2">Comment 5: Whether to Adjust the Coating Chemicals Benchmark</FP>
                    <FP SOURCE="FP1-2">Comment 6: Whether to Include all Import Duties and Taxes in the Benchmark Calculations</FP>
                    <FP SOURCE="FP1-2">Comment 7: Whether to Adjust the Ocean Freight Benchmark</FP>
                    <FP SOURCE="FP1-2">Comment 8: Whether to Adjust Sengon's Sales Denominator</FP>
                    <FP SOURCE="FP1-2">Comment 9: Whether to Adjust WCT's Inland Freight Calculation</FP>
                    <FP SOURCE="FP1-2">Comment 10: Whether to Conduct an Upstream Subsidy Investigation</FP>
                    <FP SOURCE="FP-2">VIII. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14609 Filed 7-20-26; 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-427-828]</DEPDOC>
                <SUBJECT>Certain Carbon and Alloy Steel Cut-to-Length Plate From France: Preliminary Results of Antidumping Duty Administrative Review; 2024-2025</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 Dillinger France S.A. (Dillinger) did not make sales of subject merchandise at less than normal value (NV) during the period of review (POR), May 1, 2024 through April 30, 2025. Interested parties are invited to comment on these preliminary results of review.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable July 21, 2026.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Christopher Doyle, AD/CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5882.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On June 25, 2025, based on timely requests for review, in accordance with 19 CFR 351.221(c)(1)(i), we initiated an administrative review of the antidumping duty order on certain carbon and alloy steel cut-to-length plate (CTL plate) from France.
                    <SU>1</SU>
                    <FTREF/>
                     This review covers one producer/exporter of the subject merchandise, Dillinger.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>
                         90 FR 26967 (June 25, 2025); 
                        <E T="03">see also 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 (May 25, 2017) (
                        <E T="03">Order</E>
                        ).
                    </P>
                </FTNT>
                <P>
                    Due to the lapse in appropriations and Federal Government shutdown, on November 14, 2025, Commerce tolled all deadlines in administrative proceedings by 47 days,
                    <SU>2</SU>
                    <FTREF/>
                     and, due to a backlog of documents that were electronically filed via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS) during the Federal Government shutdown, on November 24, 2025, Commerce tolled all deadlines in administrative proceedings by an additional 21 days.
                    <SU>3</SU>
                    <FTREF/>
                     In March 2026, we extended the preliminary results of this review.
                    <SU>4</SU>
                    <FTREF/>
                     Further, in May 2026, we extended the preliminary results of this review to no later than July 15, 2026.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Deadlines Affected by the Shutdown of the Federal Government,” dated November 14, 2025.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Tolling of all Case Deadlines,” dated November 24, 2025.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Extension of Deadline for Preliminary Results of 2024-2025 Antidumping Administrative Review,” dated March 18, 2026.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Extension of Deadline for Preliminary Results of 2024-2025 Antidumping Administrative Review,” dated May 12, 2026.
                    </P>
                </FTNT>
                <P>
                    For a complete description of the events that followed the initiation of this review, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                    <SU>6</SU>
                    <FTREF/>
                     A list of the 
                    <PRTPAGE P="45792"/>
                    topics discussed in the Preliminary Decision Memorandum is attached as an appendix to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via ACCESS, which 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/frnotices</E>
                    .
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Decision Memorandum for the Preliminary Results of the Administrative 
                        <PRTPAGE/>
                        Review of the Antidumping Duty Order on Certain Carbon and Alloy Steel Cut-to-Length Plate from France; 2024-2025,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Order</HD>
                <P>
                    The merchandise subject to the 
                    <E T="03">Order</E>
                     is CTL plate from France. For a complete description of the scope of the 
                    <E T="03">Order, see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce is conducting this review in accordance with section 751(a) of the Tariff Act of 1930, as amended (the Act). Export price is calculated in accordance with section 772 of the Act. NV is calculated in accordance with section 773 of the Act. For a full description of the methodology underlying our conclusions, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Preliminary Results of Review</HD>
                <P>As a result of this review, we preliminarily determine the following estimated weighted-average dumping margin exists for the period May 1, 2024, through April 30, 2025:</P>
                <GPOTABLE COLS="02" OPTS="L2,nj,tp0,i1" CDEF="s25,9C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Producer/exporter</CHED>
                        <CHED H="1">
                            Weighted-
                            <LI>average </LI>
                            <LI>dumping </LI>
                            <LI>margin </LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Dillinger France S.A </ENT>
                        <ENT>0.00</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>Commerce intends to disclose its calculations performed to interested parties for these preliminary results within five days of any public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b).</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. Pursuant to 19 CFR 351.309(c)(1)(ii), we have modified the deadline for interested parties to submit case briefs to Commerce to no later than 21 days after the date of the publication of this notice.
                    <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 briefs 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/>
                     All briefs must be filed electronically using ACCESS. An electronically filed document must be received successfully in its entirety in ACCESS by 5:00 p.m. Eastern Time on the established deadline.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309.
                    </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 Procedures</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)(iii) and (d)(2)(iii), we 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 public executive summary of each issue to no more than 450 words, not including citations. We intend to use the public executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final results in this administrative review. We request that interested parties include footnotes for relevant citations in the public 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 Procedures.</E>
                    </P>
                </FTNT>
                <P>
                    Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing must submit a written request to the Assistant Secretary for Enforcement and Compliance, filed electronically via ACCESS by 5:00 p.m. Eastern Time within 30 days after the date of publication of this notice. Requests should contain: (1) the party's name, address, and telephone number; (2) the number of participants; and (3) a list of 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, Commerce will inform parties of the scheduled date for the hearing.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                          
                        <E T="03">See</E>
                         19 CFR 351.310(d).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Assessment Rates</HD>
                <P>Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b)(1), Commerce will determine, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with the final results of this review.</P>
                <P>
                    If Dillinger's weighted-average dumping margin is not zero or 
                    <E T="03">de minimis</E>
                     (
                    <E T="03">i.e.,</E>
                     less than 0.50 percent) in the final results of this review, Commerce intends to calculate importer-specific assessment rates on the basis of the ratio of the total amount of dumping calculated for each importer's examined sales to the total entered value of those sales. Where we do not have entered values for all U.S. sales to a particular importer, we will calculate an importer-specific, per-unit assessment rate on the basis of the ratio of the total amount of dumping calculated for the importer's examined sales to the total quantity of those sales.
                    <SU>13</SU>
                    <FTREF/>
                     To determine whether an importer-specific, per-unit assessment rate is 
                    <E T="03">de minimis,</E>
                     in accordance with 19 CFR 351.106(c)(2), we also will calculate an importer-specific 
                    <E T="03">ad valorem</E>
                     ratio based on estimated entered values. If Dillinger's weighted-average dumping margin is zero or 
                    <E T="03">de minimis</E>
                     or where an importer-specific 
                    <E T="03">ad valorem</E>
                     assessment rate is zero or 
                    <E T="03">de minimis,</E>
                     we will instruct CBP to liquidate appropriate entries without regard to antidumping duties.
                    <SU>14</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                          
                        <E T="03">See</E>
                         19 CFR 351.212(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                          
                        <E T="03">See</E>
                         19 CFR 351.106(c)(2); 
                        <E T="03">see also Antidumping Proceeding: Calculation of the Weighted-Average Dumping Margin and Assessment Rate in Certain Antidumping Proceedings; Final Modification,</E>
                         77 FR 8101, 8103 (February 14, 2012).
                    </P>
                </FTNT>
                <P>
                    In accordance with Commerce's “automatic assessment” practice, for entries of subject merchandise during the POR produced by Dillinger for which it did not know that the merchandise was destined for the United States, we intend to instruct CBP to liquidate those entries at the all-others rate calculated in the less-than-fair-value (LTFV) investigation if there is no rate for the intermediate company(ies) involved in the transaction.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         For a full discussion of this practice, 
                        <E T="03">see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties,</E>
                         68 FR 23954 (May 6, 2003).
                    </P>
                </FTNT>
                <P>
                    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).
                    <PRTPAGE P="45793"/>
                </P>
                <HD SOURCE="HD1">Cash Deposit Requirements</HD>
                <P>
                    The following deposit requirements will be effective for all shipments of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date of the final results of this administrative review, as provided by section 751(a)(2)(C) of the Act: (1) the cash deposit rate for the company listed above will be that established in the 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 previously investigated or reviewed companies not covered by this review, the cash deposit rate will continue to be the company-specific cash deposit rate published for the most recently completed segment of this proceeding in which the company participated; (3) if the exporter is not a firm covered in this review, or the LTFV investigation, but the manufacturer is, then the cash deposit rate will be the rate established for the most recent segment for the manufacturer of the merchandise; and (4) the cash deposit rate for all other manufacturers or exporters will continue to be 6.15 percent, the all-others rate established in the LTFV investigation.
                    <SU>16</SU>
                    <FTREF/>
                     These cash deposit requirements, when imposed, shall remain in effect until further notice.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See Order</E>
                        .
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Results of Review</HD>
                <P>Unless otherwise extended, Commerce intends to issue the final results of this administrative review, including the results of its analysis of the issues raised in any written briefs, not later than 120 days after the date of publication of this notice, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h)(1).</P>
                <HD SOURCE="HD1">Notification to Importers</HD>
                <P>This notice also serves as a preliminary 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 double antidumping duties.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>We are issuing and publishing these preliminary results of review in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).</P>
                <SIG>
                    <DATED> Dated: July 15, 2026.</DATED>
                    <NAME>Christopher Abbott,</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>
                <APPENDIX>
                    <HD SOURCE="HED">Appendix</HD>
                    <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 
                        <E T="03">Order</E>
                    </FP>
                    <FP SOURCE="FP-2">IV. Discussion of the Methodology</FP>
                    <FP SOURCE="FP-2">V. Recommendation</FP>
                </APPENDIX>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14628 Filed 7-20-26; 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-XF844]</DEPDOC>
                <SUBJECT>Pacific 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 Pacific Fishery Management Council's (Pacific Council) Ad-hoc Sacramento River Fall Chinook (SRFC) Workgroup will hold an online meeting in August 2026.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The online meeting will be held on Thursday, August 6, 2026, from 2 p.m. until 4 p.m. Pacific Time or until business for the day concludes.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        This meeting will be held online. Specific meeting information, including directions on how to join the meeting and system requirements will be provided in the meeting announcement on the Pacific Council's website (see 
                        <E T="03">www.pcouncil.org</E>
                        ). You may send an email to Mr. Hayden York (
                        <E T="03">hayden.york@pcouncil.org</E>
                        ) or contact him at (503) 820-2424 for technical assistance.
                    </P>
                    <P>
                        <E T="03">Council address:</E>
                         Pacific Fishery Management Council, 7700 NE Ambassador Place, Suite 101, Portland, OR 97220-1384.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Angela Forristall, Staff Officer, Pacific Council; telephone: (503) 820-2419.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The primary purpose of the meeting is to prepare for the August 19 and 20, 2026 peer review meeting on methods to evaluate a revised spawner abundance at maximum sustainable yield (S
                    <E T="52">MSY</E>
                    ) for Sacramento River fall Chinook. The SRWG will be preparing responses to questions submitted by peer review panelists and may discuss other items related to planning and coordination for the peer review meeting. Additional discussions may include, but are not limited to, future meetings, workload planning, and upcoming Pacific Council agenda items.
                </P>
                <P>Although non-emergency issues not contained in the meeting agenda may be discussed, those issues may not be the subject of formal action during this meeting. Action will be restricted to those issues specifically listed in this document and any issues arising after publication of this document 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>
                    Requests for sign language interpretation or other auxiliary aids should be directed to Mr. Hayden York (
                    <E T="03">hayden.york@pcouncil.org;</E>
                     (503) 820-2424) at least 10 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: July 17, 2026. </DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14682 Filed 7-20-26; 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>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Basic Requirements for Special Exception Permits and Authorizations To Take, Import, and Export Marine Mammals, Threatened and Endangered Species, and for Maintaining a Captive Marine Mammal Inventory Under Section 104 of the Marine Mammal Protection Act, the Fur Seal Act, and/or Section 10(a)(1)(A) of the Endangered Species Act</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 
                    <PRTPAGE P="45794"/>
                    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 March 9, 2026, during a 60-day comment period. This notice allows for an additional 30 days for public comments.
                </P>
                <P>
                    <E T="03">Agency:</E>
                     National Oceanic &amp; Atmospheric Administration (NOAA), Commerce.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Basic Requirements for Special Exception Permits and Authorizations to Take, Import, and Export Marine Mammals, Threatened and Endangered Species, and for Maintaining a Captive Marine Mammal Inventory Under Section 104 of the Marine Mammal Protection Act, the Fur Seal Act, and/or Section 10(a)(1)(A) of the Endangered Species Act.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0648-0084.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     NOAA FORMs 89-880, 89-881, and 89-882.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Regular submission (revision and extension of a current information collection).
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     656.
                </P>
                <P>
                    <E T="03">Average Hours Per Response:</E>
                     The estimated average amount of time it takes to complete each information collection instrument is as follows. Scientific research and enhancement permit applications, 50 hours; public display permit applications, 50 hours; protected species parts applications, 20 hours; photography permit applications, 16 hours; General Authorization Letters of Intent, 10 hours; major permit modification requests, 35 hours; minor permit modification requests, 3 hours; scientific research and enhancement permit reports, 12 hours; protected species parts only permit reports, 8 hours; General Authorization reports, 8 hours; public display permit reports, 2 hours; photography permit reports, 2 hours; public display inventory reporting, 2 hours; and general record keeping, 2 hours per each type.
                </P>
                <P>
                    <E T="03">Total Annual Burden Hours:</E>
                     6,923. The total annual burden hours were calculated by multiplying the anticipated number of responses for each information collection instrument by the estimated time per response listed above. The number of anticipated responses was determined from reviewing the number of applications received from 2023-2026 and the number of active permit holders and marine mammal facilities as of May 18, 2026.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The NMFS, Office of Protected Resources, Permits and Conservation Division is proposing a revision and extension of the currently approved information collection OMB Control Number 0648-0084. The information collection request (IRC) is under the authority of the Marine Mammal Protection Act (MMPA), the Fur Seal Act (FSA), and the Endangered Species Act (ESA). This information collection applies to certain protected species for which NMFS is responsible: cetaceans (whales, dolphins and porpoises) and pinnipeds (seals and sea lions); and, for ESA scientific research and enhancement permits: smalltooth sawfish, sea turtles (in water), sturgeon (Atlantic and shortnose), pillar corals, and certain foreign ESA-listed species. This information collection may be used for future ESA-listed species.
                </P>
                <P>
                    The MMPA, FSA, and ESA prohibit “take” (
                    <E T="03">e.g.,</E>
                     to harass or kill), import, and export of marine mammals and endangered and threatened species, with limited exceptions. Pursuant to Section 104 of the MMPA and Section 10(a)(1)(A) of the ESA, individuals, business or other for-profit organizations, not-for-profit institutions, and government agencies may obtain special exception permits to take, import, or export marine mammals or endangered or threatened species for scientific research or enhancement purposes. Section 104 of the MMPA also provides for Letters of Confirmation under a General Authorization for scientific research; permits for commercial and educational photography of marine mammals; and permits for capture and/or import of marine mammals for public display.
                </P>
                <P>Persons or institutions seeking to take, import, or export protected species must apply for a permit or authorization and demonstrate the statutory and regulatory requirements are met. The regulations pertaining to permits and associated reporting under the MMPA and FSA are at 50 CFR part 216; the regulations for permit requirements under the ESA are at 50 CFR part 222. The required information in this collection is used by NMFS to make the determinations required by the MMPA, FSA, ESA, and their implementing regulations prior to issuing a permit or authorization; to establish appropriate conditions; to evaluate the impacts on protected species; and, to ensure compliance with the Acts.</P>
                <P>Information required includes the name, affiliation, contact information and qualifications of the applicant and others listed on the application; the purpose of the request; the species, age, sex, and number of animals; the proposed methods and mitigation to minimize impacts to the species; location; a description of the impacts to the species and environment; and the requested time frame of the permit. Permit and authorization holders must submit reports on the activities they carry out.</P>
                <P>
                    The MMPA requires NMFS to maintain an inventory of marine mammals in public display facilities and for those facilities to report certain information to NMFS' (via the National Inventory of Marine Mammals [NIMM]). The NIMM forms include an institutional contact form, a marine mammal data sheet (MMDS), and a transfer/transport notification form. Inventory information required by the MMPA includes the animal's name or other identification; sex; birth date; date animal enters and leaves a collection; source of the animal (
                    <E T="03">e.g.,</E>
                     stranding); where an animal is transferred or transported; and date and cause of death (when determined). Exporting facilities must provide documentation to NMFS that the recipient facility meets standards comparable to those required in the United States. The NIMM forms facilitate compliance with MMPA reporting requirements and allow NMFS to keep NIMM up to date. We are not proposing any changes to the MMDS or the other NIMM forms at this time.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals; Business or other for-profit organizations; Not-for-profit institutions; State, Local, or Tribal government; Federal government.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Permit applications, typically once every five or ten years; permit reports, annually or more frequently if incidents occur; amendments and modifications to permits, as frequently as requested by permit holders; public display inventory reporting, 15 days prior to transporting or transferring marine mammals and 30 days after the date of birth or death of a marine mammal.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Public display forms are mandatory; permit applications are required to receive a permit.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     MMPA (16 U.S.C. 1361 
                    <E T="03">et seq.</E>
                    ), FSA (16 U.S.C. 1151 
                    <E T="03">et seq.</E>
                    ), and ESA (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ).
                </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 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 
                    <PRTPAGE P="45795"/>
                    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 0648-0084.
                </P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Departmental PRA Compliance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14643 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">COMMODITY FUTURES TRADING COMMISSION</AGENCY>
                <SUBJECT>Agricultural Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Commodity Futures Trading Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Commodity Futures Trading Commission (CFTC) announces that on July 29, 2026, from 1:00 p.m. to 4:00 p.m. Eastern Daylight Time, the Agricultural Advisory Committee (AAC or Committee) will hold an in-person public meeting at the CFTC's Washington, DC headquarters, with options for the public to attend virtually. At this meeting, the AAC will discuss: topics related to the Basel III proposal, risk management tools for agricultural end users, 24/7 trading and emerging markets, and recent CFTC activity in the agricultural industry.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting will be held on July 29, 2026, from 1:00 p.m. to 4:00 p.m. Eastern Daylight Time. Please note that the meeting may end early if the AAC has completed its business. Members of the public who wish to submit written statements in connection with the meeting should submit them by Friday, August 7, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting will take place in the Conference Center at the CFTC's headquarters, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. You may submit comments, specifically referencing “Agricultural Advisory Committee,” by any of the following methods:</P>
                    <P>
                        <E T="03">Regulations.gov:</E>
                         Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and press the “Search” button, then proceed as follows:
                    </P>
                    <P>1. Under Refine Documents Results—check the box to “Only show documents open for comment”;</P>
                    <P>2. Under Agency—select “See More” and check the box for “Commodity Futures Trading Commission,” then press the Apply button;</P>
                    <P>
                        3. Identify the AAC meeting in the list of CFTC documents open for comment, press the “Comment” button to open the submission form, and follow the instructions on the form. Alternatively, if you are viewing this proposal on 
                        <E T="03">https://www.federalregister.gov,</E>
                         click the “Submit A Public Comment” button at the top of the page to open the comment form. Follow the instructions on the form to submit your comment to 
                        <E T="03">Regulations.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Send to—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>
                         Address to—CFTC Comment Submission, Attn: Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581.
                    </P>
                    <P>
                        Please submit your comments using only one of these methods. To avoid possible delays with mail or in-person deliveries, submissions through 
                        <E T="03">Regulations.gov</E>
                        are encouraged. All comments must be submitted in English or, if not, accompanied by an English translation. Do not include in your comment text or attachments any personal identifying information or business information that you do not want published online. Comments (regardless of submission method) will be published without review for, and without removal of, any personal identifying information or information your business may consider confidential.
                    </P>
                    <P>The CFTC reserves the right, but shall have no obligation, to review, pre-screen, filter, or redact all or any part of your comment submission. The CFTC also reserves the right, without further notification, to refuse to publish or to remove from public view all or any part of your submission to the extent it contains content inappropriate for publication in a comment file, such as—without limitation—obscene language, threats of violence, solicitations for commercial sales or illegal activity, or obvious spam. If a submission that is refused for or withdrawn from publication because of inappropriate content also contains comments regarding the AAC meeting, such submission will be retained in the record for the matter and will be considered as required under the Administrative Procedure Act and other applicable laws, and may be accessible under the FOIA.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Emma Johnston, Senior Agriculture Advisor to Chairman Michael S. Selig and AAC Designated Federal Officer, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC; (202) 418-5172; or 
                        <E T="03">AAC@cftc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Registration for the meeting is not required. The meeting will be open to the public with seating on a first-come, first-served basis. Members of the public may also listen to the meeting by calling a domestic or international toll or toll-free number to connect to a live, listen-only audio feed. Call-in participants should be prepared to provide their first name, last name, and affiliation.</P>
                <P>
                    <E T="03">Domestic Toll-Free Number:</E>
                     833-435-1820 or 833-568-8864.
                </P>
                <P>
                    <E T="03">Domestic Toll Number:</E>
                     +1 646-828-7666 or +1 551-285-1373.
                </P>
                <P>
                    <E T="03">International Toll- and Toll-Free Numbers:</E>
                     Will be posted on the CFTC's website, 
                    <E T="03">https://cftc-gov.zoomgov.com/u/amMZfJmkr,</E>
                     on the page for the meeting, under Related Links.
                </P>
                <P>
                    <E T="03">Call-In/Webinar ID:</E>
                     165 552 9048.
                </P>
                <P>
                    <E T="03">Pass Code/Pin Code:</E>
                     291081.
                </P>
                <P>
                    Members of the public may also view a live webcast of the meeting via the 
                    <E T="03">https://www.cftc.gov</E>
                     website. The meeting agenda may change to accommodate other Committee priorities. For agenda updates, please visit 
                    <E T="03">https://www.cftc.gov/About/AdvisoryCommittees/AAC.</E>
                </P>
                <P>
                    After the meeting, a transcript of the meeting will be published through a link on the CFTC's website, 
                    <E T="03">https://www.cftc.gov.</E>
                     Persons requiring special accommodations to attend the meeting because of a disability should notify the contact person above. 
                </P>
                <EXTRACT>
                    <FP>(Authority: 5 U.S.C. 1009(a)(2).) </FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Robert Sidman,</NAME>
                    <TITLE>Deputy Secretary of the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14675 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6351-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">CONSUMER PRODUCT SAFETY COMMISSION</AGENCY>
                <SUBJECT>Request for Comment: Commission Agenda and Priorities</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Consumer Product Safety Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Consumer Product Safety Commission (Commission or CPSC) seeks public comment from interested parties about the Commission's agenda and priorities for fiscal year (FY) 2027, which begins October 1, 2026, and for FY 2028, which begins October 1, 2027.</P>
                </SUM>
                <DATES>
                    <PRTPAGE P="45796"/>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments by August 12, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You can submit comments by email to 
                        <E T="03">cpsc-os@cpsc.gov</E>
                         with the subject line, “Agenda and Priorities FY 2027 and/or 2028.” Comments must be received by the Office of the Secretary not later than 5:00 p.m. EDT on August 12, 2026.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        CPSC's Office of the Secretary at 
                        <E T="03">cpsc-os@cpsc.gov.</E>
                         If you have any questions, you may contact Alberta E. Mills, Office of the Secretary, U.S. Consumer Product Safety Commission, via the email above, by mail at 4330 East-West Highway, Bethesda, MD 20814, or by telephone at (301) 504-7479.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>Section 4(j) of the Consumer Product Safety Act (CPSA), 15 U.S.C. 2053(j), requires the Commission to establish an agenda for action under the laws the Commission administers and, to the extent feasible, select priorities for action at least 30 days before the beginning of each fiscal year. Section 4(j) of the CPSA provides further that before establishing its agenda and priorities, the Commission shall provide an opportunity for the submission of comments.</P>
                <HD SOURCE="HD1">II. Submission of Written Comments</HD>
                <P>
                    The Commission is preparing the agency's FY 2027 Operating Plan and FY 2028 Congressional Budget Request. FY 2027 begins October 1, 2026, and FY 2028 begins October 1, 2027. Through this notice, the Commission invites the public to comment on the Commission's agenda and priorities that will be established in the FY 2027 Operating Plan and the FY 2028 Congressional Budget Request. Proposed priorities should be aligned with the agency's Strategic Plan for fiscal years 2026-2030, which is available at 
                    <E T="03">https://www.cpsc.gov/About-CPSC/Agency-Reports/Performance-and-Budget.</E>
                </P>
                <P>
                    Written comments should be captioned, “Agenda and Priorities FY 2027 and/or 2028” and sent to the CPSC Office of the Secretary at 
                    <E T="03">cpsc-os@cpsc.gov</E>
                     not later than 5 p.m. EDT on August 12, 2026.
                </P>
                <SIG>
                    <NAME>Alberta E. Mills,</NAME>
                    <TITLE>Secretary, Consumer Product Safety Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14700 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6355-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DOD-2026-OS-1025]</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 August 20, 2026.</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>
                     Military Spouse Employment Partnership (MSEP) Career Portal; OMB Control Number 0704-0563.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Revision.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                </P>
                <P>
                    <E T="03">New Partner Application Registration:</E>
                     150.
                </P>
                <P>
                    <E T="03">Become a Partner Application:</E>
                     150.
                </P>
                <P>
                    <E T="03">New Partner User Registration:</E>
                     300.
                </P>
                <P>
                    <E T="03">Monthly Reporting:</E>
                     650.
                </P>
                <P>
                    <E T="03">Total Respondents:</E>
                     1,250.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                </P>
                <P>
                    <E T="03">New Partner Application Registration:</E>
                     1.
                </P>
                <P>
                    <E T="03">Become a Partner Application:</E>
                     1.
                </P>
                <P>
                    <E T="03">New Partner User Registration:</E>
                     1.
                </P>
                <P>
                    <E T="03">Monthly Reporting:</E>
                     12.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     8,400.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                </P>
                <P>
                    <E T="03">New Partner Application Registration:</E>
                     10 minutes.
                </P>
                <P>
                    <E T="03">Become a Partner Application:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">New Partner User Registration:</E>
                     10 minutes.
                </P>
                <P>
                    <E T="03">Monthly Reporting:</E>
                     2 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     373 hours.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The information collection requirement is necessary to allow MSEP Partners to apply to be part of the partnership, report spouse hires, and access spouse employment data. The MSEP Partner Portal is the sole web platform utilized to connect the program office with MSEP employer partners and potential partners. Participating companies, called MSEP Partners, are vetted and approved participants in the MSEP Program and have pledged to recruit, hire, promote and retain military spouses in portable careers. MSEP is a targeted recruitment and employment partnership that connects American businesses with military spouses who possess essential 21st-century workforce skills and attributes and are seeking portable, fulfilling careers. The MSEP program is part of the overall Spouse Education and Career Opportunities (SECO) program which falls under the auspices of the office of the Deputy Assistant Secretary of Defense for Military Community &amp; Family Policy.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households; Business or Other For-Profit.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                </P>
                <P>
                    <E T="03">New Partner Application Registration:</E>
                     Once.
                </P>
                <P>
                    <E T="03">Become a Partner Application:</E>
                     Once.
                </P>
                <P>
                    <E T="03">New Partner User Registration:</E>
                     On Occasion.
                </P>
                <P>
                    <E T="03">Monthly Reporting:</E>
                     On Occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Required to obtain benefits.
                </P>
                <P>
                    <E T="03">DoD Clearance Officer:</E>
                     Mr. Reginald Lucas.
                </P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14657 Filed 7-20-26; 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>Renewal of Department of Defense Federal Advisory Committees—Board of Visitors, National Defense University</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Renewal of Federal advisory committee.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD (referred to herein as “the Department of War” or “DoW”) is publishing this notice to announce it is renewing the Board of Visitors, National Defense University (BoV NDU) as a discretionary Federal advisory committee.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Jim Freeman, Advisory Committee 
                        <PRTPAGE P="45797"/>
                        Management Officer for the DoW, 703-692-5952.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The DoW is renewing the BoV NDU in accordance with chapter 10 of title 5 United States Code (U.S.C.) (commonly known as the “Federal Advisory Committee Act” or “FACA”) and 41 Code of Federal Regulations (CFR) 102-3.50(d), and DoW policies and procedures. The public or interested organizations may submit written statements about the BoV NDU mission and functions. Written statements may be submitted at any time or in response to the stated agenda of planned meetings of the BoV NDU. All written statements shall be submitted to the BoV NDU Designated Federal Officer (DFO), and this individual will ensure that all written statements are provided to the membership for their consideration. The BoV NDU's DFO is Ms. Joycelyn Stevens, and she may be contacted at (202) 685-0079, or 
                    <E T="03">stevensj7@ndu.edu.</E>
                </P>
                <P>Consistent with 41 CFR 102-3.65(a), the DoW is publishing the BoV NDU's Public Interest Determination.</P>
                <P>Pursuant to 41 CFR 102-3.60(a), to establish, renew, reestablish, or merge a discretionary (agency discretion) advisory committee, an agency must first consult with the General Services Administration's Committee Management Secretariat (the Secretariat) and, as part of the consultation, provide a written public interest determination approved by the head of the agency to the Secretariat with a copy to the Office of Management and Budget. In addition, pursuant to 41 CFR 102-3.35, an agency shall follow the same consultation process and document in writing the same determination of need before creating a subcommittee under a discretionary committee that is not made up entirely of members of a parent advisory committee.</P>
                <P>Information on the following factors for the BoV NDU is provided to the Secretariat to demonstrate that renewing the BoV NDU is in the public interest:</P>
                <P>
                    1. 
                    <E T="03">Annual Budget:</E>
                     The DoW estimates annual operating costs to support the BoV NDU are $182,212, which includes personnel travel, meetings, and contract support.
                </P>
                <P>a. Federal personnel on a full-time equivalent (FTE) basis: The estimated annual personnel costs to the DoW are 0.9 full-time equivalent at $155,180, which includes basic pay with cost-of-living allowance (COLA).</P>
                <P>b. Other Federal internal costs: Other costs for the BoV NDU include administrative and contract costs at $9,744.</P>
                <P>c. Proposed payments to members: Consistent with 10 U.S.C. 173, members of the BoV NDU are not compensated for their services, except for travel and per diem reimbursement for official BoV NDU-related business.</P>
                <P>d. Proposed number of members: As authorized by the Secretary of War (SecWar), the BoV NDU will be composed of not more than 12 members.</P>
                <P>e. Reimbursable costs: The estimated reimbursement costs, to include travel, for BoV NDU staff and members are $17,288.</P>
                <P>
                    2. 
                    <E T="03">If applicable, the total dollar value of grants is expected to be recommended during the fiscal year:</E>
                     N/A.
                </P>
                <P>
                    3. 
                    <E T="03">Criteria for selecting members to ensure the committee has the necessary expertise and fairly balanced membership:</E>
                     As described in its proposed charter and membership balance plan, the BoV NDU is composed of members who have distinguished backgrounds in defense, intelligence, management, leadership, academia, national military strategy, joint planning at all levels of war, joint doctrine, joint command and control, or joint requirements and development.
                </P>
                <P>In selecting members, the DoW seeks to capitalize on recognized talented, innovative private and public sector leaders to provide the broadest knowledge and expertise based on a balanced BoV NDU membership composition. The BoV NDU membership is not static, and the SecWar and Deputy Secretary of War (“the DoW Appointing Authority”) may change the membership based upon work assigned to the BoV NDU by the DoW Appointing Authority or the Chairman of the Joint Chiefs of Staff (CJCS), as the BoV NDU's DoW Sponsor.</P>
                <P>
                    4. 
                    <E T="03">List of all other DoW Federal Advisory Committees:</E>
                     A complete listing of DoW Federal advisory committees can be located at: 
                    <E T="03">https://www.facadatabase.gov/FACA/s/account/001t000000DCAooAAH/department-of-defense.</E>
                </P>
                <P>
                    5. 
                    <E T="03">Justification that the information or advice provided by the Federal advisory committee or subcommittee is not available from another Federal advisory committee, another Federal Government source, or any other more cost-effective and less burdensome source:</E>
                     The BoV NDU's unique role in providing the independent governance required for academic accreditation for NDU cannot be replicated by another Federal Government source. No standard internal government office or military chain of command can replicate this independent oversight, which is legally and procedurally necessary for NDU to grant degrees. Furthermore, this specific governance structure ensures the DoW complies with the Goldwater-Nichols Department of Defense Reorganization Act of 1986's mandate to maintain rigorous standards for the military education of officers. By acting as an objective guardian of institutional integrity, the BoV NDU directly advises the CJCS, delivering essential external accountability and bi-annual assessments.
                </P>
                <P>Furthermore, while the BoV NDU operates under the direct oversight of the DoW and the CJCS, it provides a specialized advisory capability that standard internal Federal functions cannot replicate. It uniquely bridges external academic and strategic expertise with internal military governance, directly supporting the CJCS and NDU leadership with focused, expert recommendations. This structured relationship allows the BoV NDU to effectively champion NDU's needs within the DoW—such as successfully advocating for critical infrastructure funding from the Joint Staff and the Office of the Secretary of War (OSW). By functioning as a dedicated advisory body rather than a traditional bureaucratic office, the BoV NDU is uniquely positioned to guide strategic innovations—such as integrating emerging AI technologies and wargaming—while ensuring the NDU remains strictly aligned with high-level Administration and DoW priorities regarding the warrior ethos and warfighting advantage.</P>
                <P>
                    6. 
                    <E T="03">If the consultation is a committee renewal, a summary of the previous accomplishments of the committee and the reasons it needs to continue:</E>
                     Enhancing Warrior Ethos in Curriculum: At the BoV NDU's recommendation, in 2022 NDU established an ethics working group responsible for auditing and suggesting improvements to how ethics and the profession of arms is reinforced within curriculum. In Academic Year 2024, NDU also instituted a new institutional learning outcome to ensure all programs purposefully develop graduates' abilities to apply principles governing the profession of arms, civil-military relations, and ethics to support strategic level decision-making. The BoV NDU is monitoring progress.
                </P>
                <P>
                    Shaping NDU's Strategic Plan: The BoV NDU advises on NDUs strategic goals and monitors the implementation of NDU's Strategic Plan. NDU's Interim Strategic Plan for 2026-27 prioritizes three objectives: warfighting output, decision advantage, and institutional adaptation. The plan demands innovation in design and delivery of Joint Professional Military Education (JPME), incorporating emerging technologies, wargaming, and 
                    <PRTPAGE P="45798"/>
                    simulation into the applied decision making of NDU programs. The BoV NDU has also been a strong advocate for strengthening relationships with the defense industrial base, supporting NDU's successful petition to expand the number of private sector fellow positions within the student body.
                </P>
                <P>Fostering Accountability &amp; Stability: The BoV NDU is a significant advocate for stable funding for NDU, monitoring fiscal, physical infrastructure, and technological requirements. This support was instrumental in securing Joint Staff and OSW funding to replace failing classroom infrastructure at North and South campuses in fiscal year 2024. The BoV NDU also routinely reviews NDU's military and civilian accreditation compliance. In Academic Year 2024, they reviewed improvements to NDU's institutional assessment processes, ensuring that the University has a sustainable approach for identifying and implementing improvements.</P>
                <P>The BoV NDU has contributed to the achievement of the NDU's mission for five decades, safeguarding the quality of senior-level joint professional military education. It provides expert recommendations on curriculum and instructional innovation focused on DoW priority areas: rigorous standards, warrior ethos, and military leadership in complex, joint environments. Additionally, it guides and monitors strategic planning and implementation. Most recently, these efforts have focused on integration of emerging technologies, wargaming, and simulation into NDU programs. The BoV NDU also plays a critical role in institutional accountability and quality, providing routine updates to the CJCS on requirements and trends in institutional performance. This governance function is required for compliance with academic accreditation, which both enables the NDU to grant degrees and facilitates DoW's compliance with the Goldwater-Nichols Department of Defense Reorganization Act of 1986, 10 U.S.C. 2152 direction to ensure “schools maintain rigorous standards for the military education of officers.”</P>
                <P>
                    7. 
                    <E T="03">Explanation of why the committee/subcommittee is essential to the conduct of agency business:</E>
                     The BoV NDU provides expert guidance on vital issues for improving NDU and its six colleges as they deliver military education tailored for senior-level warfighters and national security partners (JPME I, II and III), the intelligence community, DoW's Cyber Workforce, DoW's Senior Acquisition Workforce, and joint special operators. More specifically, BoV NDU review encompasses curriculum, strategic innovation (
                    <E T="03">e.g.,</E>
                     incorporation of emerging technologies), and institutional effectiveness. This includes reviewing how NDU programs are implementing executive and DoW priorities. The BoV NDU also serves as a guardian of institutional integrity, advising the CJCS to ensure that the NDU continues to fulfill its mission to educate for warfighting advantage to win in competition, crisis, and conflict. This governance function is required for academic accreditation, which both enables the NDU to grant degrees and facilitates DoW's compliance with the Goldwater-Nichols Department of Defense Reorganization Act of 1986, 10 U.S.C. 2152, direction that “schools maintain rigorous standards for the military education of officers.” Following each bi-annual meeting, the BoV NDU provides written recommendations to the CJCS, directly contributing to institutional improvement.
                </P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14677 Filed 7-20-26; 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-2026-OS-0629]</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 August 20, 2026.</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>
                     Navy New Parent Support Program (NPSP) Evaluation Addendum: Phase II; OMB Control Number 0704-0645.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     15,000.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     15,000.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     3,750.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     This information collection is necessary to better understand the benefits and limitations of using the Family Needs Screener (FNS) within Family Advocacy Program's New Parent Support Program (NPSP) as an intake tool to identify potential risk and protective factors for family violence and services offered by NPSP.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On Occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Mr. Reginald Lucas.
                </P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14656 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF ENERGY</AGENCY>
                <SUBJECT>Environmental Management Site-Specific Advisory Board, Paducah</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Environmental Management, Department of Energy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of open meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This notice announces an in-person/livestreamed meeting of the Environmental Management Site-Specific Advisory Board (EM SSAB), Paducah. The Federal Advisory Committee Act requires that public notice of this meeting be announced in the 
                        <E T="04">Federal Register</E>
                        .
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Thursday, August 20, 2026; 5:30-7 p.m. CDT.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        West Kentucky Community and Technical College (WKCTC), Emerging Technology Center, Room 215, 5100 Alben Barkley Drive, Paducah, Kentucky 42001. This meeting will be held in-person at the WKCTC Emerging Technology Center, Room 215 and livestreamed. The meeting will be streamed on YouTube at 
                        <E T="03">https://www.youtube.com/@pppoadvisoryboards8584;</E>
                         no registration is necessary.
                    </P>
                </ADD>
                <FURINF>
                    <PRTPAGE P="45799"/>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Zachary Boyarski at by Phone: (270) 441-6812 or Email: 
                        <E T="03">Zachary.Boyarski@pppo.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Purpose of the Board:</E>
                     At the request of the Assistant Secretary or Field Managers, the Board may provide community-based advice and recommendations concerning any EM program activities, such as clean-up activities and environmental restoration; waste management and disposition; excess facilities; future land use and long-term stewardship; communications; and budget priorities. The Board also provides an avenue to fulfill public participation requirements outlined in the Comprehensive Environmental Response, Compensation, and Liability Act (CERLA), the Resource Conservation and Recovery Act (RCRA), Federal Facility Agreements, Consent Orders, Consent Decrees and Settlement Agreements.
                </P>
                <P>
                    <E T="03">Tentative Agenda:</E>
                     (agenda topics are subject to change; please contact Zachary Boyarski for the most current agenda)
                </P>
                <FP SOURCE="FP-1">• Administrative Activities</FP>
                <FP SOURCE="FP-1">• Public Comment Period</FP>
                <P>
                    <E T="03">Public Participation:</E>
                     The meeting is open to the public and public comment can be given orally or in writing. Fifteen minutes are allocated during the meeting for public comment and those wishing to make oral comment will be given a minimum of two minutes to speak. Written comments received at least two working days prior to the meeting will be provided to the members and included in the meeting minutes. Written comments received within two working days after the meeting will be included in the minutes. For additional information on public comment and to submit written comment, please contact Zachary Boyarski at 
                    <E T="03">Zachary.Boyarski@pppo.gov.</E>
                     The EM SSAB, Paducah, welcomes the attendance of the public at its meetings and will make every effort to accommodate persons with physical disabilities or special needs. If you require special accommodations due to a disability, please contact Zachary Boyarski at least seven days in advance of the meeting.
                </P>
                <P>
                    <E T="03">Meeting conduct:</E>
                     The Designated Federal Officer is empowered to conduct the meeting in a fashion that will facilitate the orderly conduct of business. Questioning of board members or presenters by the public is not permitted.
                </P>
                <P>
                    <E T="03">Minutes:</E>
                     Minutes will be available at the following website: 
                    <E T="03">https://www.energy.gov/pppo/pgdp-cab/listings/meeting-materials.</E>
                </P>
                <P>
                    <E T="03">Signing Authority:</E>
                     This document of the Department of Energy was signed on July 16, 2026, by David Borak, Committee Management Officer, 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 July 16, 2026.</DATED>
                    <NAME>Jennifer Hartzell,</NAME>
                    <TITLE>Alternate Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14658 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBJECT>Request for Information on Domestic Reuse and Repurposing of Savannah River Site Heavy Water Inventory</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Environmental Management, Department of Energy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for information (RFI).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Energy (DOE) Office of Environmental Management (EM) publishes the following questions regarding potential collaboration for the reuse of its heavy water inventory at the Savannah River Site (SRS). SRS has about 530,000 gallons of heavy water, which may be processed using scalable methods to remove tritium and other impurities, to ensure the water meets commercial standards for new heavy water. The purpose of this RFI is to seek input on how DOE-EM can facilitate the beneficial reuse of this material specifically to support domestic scientific, medical, and industrial needs, thereby strengthening the United States (U.S.) isotope supply chain. DOE-EM is also open to discussions regarding the potential for interested parties to lease land or develop facilities on the SRS site for heavy water processing or repurposing activities. Respondents should note that industry partners would be responsible for the subsequent extraction of isotopes or repurposing of the material.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Responses to the RFI must be received no later than September 21, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested parties are to submit comments electronically to 
                        <E T="03">heavywaterrfi@doe.gov</E>
                         with the subject line “EM Heavy Water RFI Collaboration Response” no later than September 21, 2026.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rosa Elmetti, (202) 586-7652, 
                        <E T="03">heavywaterrfi@doe.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Purpose of the RFI:</E>
                     The primary purpose of this RFI is to gather comprehensive insights from industry and other interested stakeholders regarding the potential beneficial reuse of DOE's heavy water inventory at SRS. DOE-EM seeks to explore innovative pathways for repurposing this valuable material to address critical domestic needs. Specifically, this RFI aims to:
                </P>
                <P>• Identify potential applications for heavy water, deuterium, or derived isotopes that can directly benefit U.S. domestic markets and strengthen national supply chains.</P>
                <P>• Assess technical capabilities for handling, processing, de-tritiating, and purifying heavy water, particularly where tritium is present.</P>
                <P>• Evaluate collaboration frameworks with external partners, including potential on-site facility development at SRS, to facilitate the efficient utilization of the heavy water.</P>
                <P>• Inform future strategy for the long-term management of the heavy water inventory, potentially leading to future solicitation or partnership opportunities.</P>
                <P>This RFI is a crucial step in DOE-EM's commitment to responsible stewardship of its resources and to fostering innovation that supports U.S. national interests.</P>
                <P>
                    SRS currently stores approximately 530,000 gallons of heavy water (deuterium oxide, D2O) located at the −40 level in the moderator storage tank in C, K, and L reactor buildings and drums stored in L and K reactor facilities. This inventory, stored in various moderator tanks and drums, exhibits varying levels of contaminants, tritium, and deuterium enrichment. The heavy water was previously utilized as a moderator in tritium/plutonium production reactors and was retained due to its high deuterium concentration, making it a valuable resource. DOE-EM recognizes the potential value of this material for addressing national needs for limited-supply isotopes, or for various domestic industrial applications such as neutron moderation, research 
                    <PRTPAGE P="45800"/>
                    and development, medical isotope production, or reactor coolant.
                </P>
                <P>Partnering with interested parties for the beneficial reuse of this heavy water offers an attractive alternative for this legacy material. DOE-EM intends to facilitate access to this valuable resource. However, prospective industry partners would be solely responsible for the subsequent extraction of isotopes, de-tritiation, purification, or repurposing of the material, including the management and disposal of any waste streams or byproducts generated from these activities.</P>
                <P>This RFI seeks information on innovative approaches for the beneficial reuse of heavy water at SRS in alignment with DOE's strategic goals. Furthermore, this RFI seeks to ensure that the heavy water inventory at SRS contributes directly to U.S. national interests by fostering domestic research, development, and production capabilities. Therefore, information on how to prioritize and demonstrate a clear benefit to U.S.-based entities and markets are of particular interest.</P>
                <P>Currently, DOE does not possess a dedicated facility for the de-tritiation of heavy water. While the Savannah River National Laboratory (SRNL) has demonstrated expertise in de-tritiation and can support the development of project plans, cost estimates, and independent reviews, any direct engagement with SRNL for such services would need to be negotiated separately between the interested party and SRNL. Industry partners are free to pursue collaboration with any entity they deem appropriate for de-tritiation or other processing needs.</P>
                <P>Furthermore, DOE may have an interest in receiving and utilizing the tritium once it has been successfully separated from the heavy water by an industry partner. This potential arrangement would provide a beneficial disposition pathway for the tritium and support internal DOE programmatic requirements.</P>
                <P>THIS IS A REQUEST FOR INFORMATION ONLY. THIS NOTICE DOES NOT CONSTITUTE A FUNDING OPPORTUNITY ANNOUNCEMENT (FOA). NO FOA EXISTS AT THIS TIME. DOE will not provide funding or compensation for any information submitted in response to this RFI. This RFI is not seeking or accepting applications for financial assistance, and a response to this RFI will not be viewed as a binding commitment to develop or pursue the ideas discussed. No material submitted for review will be returned.</P>
                <P>Questions seeking input on potential collaboration with DOE-EM on Heavy Water Inventory: To help identify and prioritize opportunities for DOE-EM to potentially collaborate with interested parties for the reuse of the heavy water inventory at SRS, DOE-EM is seeking information from potential partners including, but not limited to:</P>
                <P>• Organizations with a demonstrated need for deuterium or other isotopes with limited supplies and no substitutes, or for other industrial applications.</P>
                <P>• Entities with expertise in heavy water processing, purification, or de-tritiation technologies.</P>
                <P>• Research institutions or companies interested in developing new uses for heavy water or its constituents.</P>
                <P>• Parties with capabilities to manage or utilize tritiated heavy water safely and effectively.</P>
                <P>• Potential partners interested in collaborating on the development of a project plan for heavy water reuse, including cost estimation and independent review support.</P>
                <P>• Parties interested in the possibility of leasing land or developing facilities on the SRS site for heavy water repurposing or processing activities.</P>
                <P>• Parties with demonstrated commitment to domestic utilization and the development of U.S.-based capabilities.</P>
                <P>The purpose of this RFI is solely to solicit input for DOE-EM's consideration to inform possible engagement with potential partners. DOE-EM will not provide funding or compensation for any information submitted in response to this RFI, and DOE-EM may use information submitted to this RFI on a non-attribution basis.</P>
                <P>
                    <E T="03">Specific Questions:</E>
                     To facilitate a comprehensive response, please address the following questions, categorizing your input as outlined.
                </P>
                <HD SOURCE="HD1">Category 1: Technical &amp; Operational Capabilities</HD>
                <HD SOURCE="HD2">A. Heavy Water Needs and Applications</HD>
                <P>1. What specific needs or demands does your organization have for heavy water, deuterium, or other isotopes that could potentially be met by the SRS inventory?</P>
                <P>
                    2. What potential applications or markets does your organization foresee for the heavy water from SRS, beyond those explicitly mentioned (
                    <E T="03">e.g.,</E>
                     deuterium, cooling)?
                </P>
                <P>3. How would your proposed utilization of the heavy water and any resulting products primarily benefit U.S. domestic needs and contribute to the resilience of the U.S. isotope supply chain?</P>
                <P>4. Please outline any plans for the domestic processing, distribution, and end-use of heavy water or its derived products within the U.S.</P>
                <HD SOURCE="HD2">B. Handling and Processing Expertise</HD>
                <P>5. Describe your organization's technical capabilities and experience in handling, processing, or utilizing heavy water, particularly if it contains tritium. Please provide specific examples of relevant projects or expertise.</P>
                <P>6. Are there any innovative approaches or technologies your organization could apply to the de-tritiation or purification of heavy water, especially considering DOE's current lack of a dedicated de-tritiation facility?</P>
                <HD SOURCE="HD2">C. Volume Requirements and Scalability</HD>
                <P>7. What are your proposed plan's heavy water volume requirements? Please specify:</P>
                <P>8. The minimum viable quantity of heavy water required to initiate your proposed plan.</P>
                <P>9. The optimal quantity of heavy water for maximizing the impact or efficiency of your plan.</P>
                <P>10. How your plan's scalability accommodates varying amounts from the available inventory.</P>
                <HD SOURCE="HD2">D. Waste Management and Byproducts</HD>
                <P>11. What are your proposed plans for the management and disposal of any waste streams or byproducts generated from your processing or repurposing activities involving the SRS heavy water?</P>
                <P>
                    12. If your process involves the separation of tritium, please describe its anticipated form (
                    <E T="03">e.g.,</E>
                     tritiated water (HTO), tritium gas (HT)).
                </P>
                <P>13. Would your organization be open to returning any separated tritium to DOE?</P>
                <HD SOURCE="HD2">E. Anticipated Challenges and Mitigation</HD>
                <P>14. What are the key technical, logistical, or regulatory challenges your organization anticipates in utilizing the heavy water from SRS?</P>
                <P>15. How would you propose to address these identified challenges?</P>
                <HD SOURCE="HD1">Category 2: Site Interest &amp; Logistical Considerations</HD>
                <HD SOURCE="HD2">A. Collaboration with DOE-EM</HD>
                <P>
                    1. How would your organization propose collaborating with DOE-EM to facilitate the reuse of the SRS heavy water inventory? This could include involvement in de-tritiation, purification, or direct utilization.
                    <PRTPAGE P="45801"/>
                </P>
                <HD SOURCE="HD2">B. On-Site Facility Requirements</HD>
                <P>2. Would your organization be interested in exploring the possibility of leasing land or developing a facility on the SRS site for heavy water processing, repurposing, or related activities?</P>
                <P>3. If interested in an on-site facility, please provide details on your potential interest and any preliminary requirements or considerations, such as:</P>
                <P>
                    • What kind of operational footprint (
                    <E T="03">e.g.,</E>
                     land area, building size) would your proposed activities require?
                </P>
                <P>
                    • What specific utility requirements (
                    <E T="03">e.g.,</E>
                     water, power, specialized gas lines) would your facility need?
                </P>
                <P>
                    • What existing site infrastructure (
                    <E T="03">e.g.,</E>
                     access roads, security, waste handling) would be critical for your operations?
                </P>
                <P>• What information would you need to determine the suitability of a specific site location within SRS?</P>
                <HD SOURCE="HD1">Comment Submission Procedures:</HD>
                <P>
                    1. 
                    <E T="03">Electronic Submission:</E>
                     Responses must be submitted electronically via email to the address specified in the RFI: 
                    <E T="03">heavywaterrfi@doe.go</E>
                    v. The subject line of the email must clearly state “EM Heavy Water RFI Collaboration Response.”
                </P>
                <P>
                    2. 
                    <E T="03">File Format and Size:</E>
                     All responses must be submitted as a Microsoft Word document (.doc/.docx). The document should be no more than 10 pages in length, use black, Times New Roman, 12-point font, and have 1-inch margins. The total file size cannot exceed 2MB.
                </P>
                <P>Respondents should embed any tables, charts, or figures directly within the Word document rather than as separate attachments, to maintain the specified file count and simplify processing.</P>
                <P>
                    3. 
                    <E T="03">No Other Means of Submission:</E>
                     Responses submitted via any other means (
                    <E T="03">e.g.,</E>
                     postal mail, fax, hand delivery) will not be considered.
                </P>
                <P>4. Acknowledgement of Receipt: Upon successful electronic submission, respondents will receive an automated email confirmation of receipt. This confirmation will serve as proof that the submission was received by DOE.</P>
                <P>
                    5. 
                    <E T="03">Confidential Business Information (CBI):</E>
                     Pursuant to 10 CFR 1004.11, any person submitting information that he or she believes to be confidential and exempt by law from public disclosure should submit via email two well-marked copies: one copy of the document marked “confidential” including all the information believed to be confidential, and one copy of the document marked “non-confidential” with the information believed to be confidential deleted. Submit these documents via email. For the non-confidential version, respondents should replace CBI with “[REDACTED]” or similar placeholders to maintain document readability and context where possible. DOE will make its own determination about the confidential status of the information and treat it according to its determination.
                </P>
                <P>
                    <E T="03">Signing Authority:</E>
                     This document of the Department of Energy was signed on July 16, 2026, by Timothy J. Walsh, Assistant Secretary, Office of Environmental Management, 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 July 16, 2026.</DATED>
                    <NAME>Jennifer Hartzell,</NAME>
                    <TITLE>Alternate Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14659 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">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 changes of its EIA-860S: State Level Generator Air Permit Inventory Report, OMB Control Number 1905-0215. The voluntary collection will ensure the EIA-860 sampling frame comprehensively covers the power generator population. This request is critically important for enhancing the completeness and accuracy of the EIA-860 sampling frame, particularly in relation to backup generators. The original collection was approved by the Office of Management and Budget on February 12, 2026, under the emergency approval provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Comments on this information collection must be received no later than August 20, 2026. 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>
                        Kenneth Pick, Survey Methodologist, at (202) 586-5562 by email at 
                        <E T="03">EIA-FRNcomments@eia.gov.</E>
                         The form and instructions are available on EIA's website at 
                        <E T="03">www.eia.gov/survey/.</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>
                     1905-0215;
                </P>
                <P>
                    (2) 
                    <E T="03">Information Collection Request Title:</E>
                     Voluntary State Level Generator Air Permit Inventory Report;
                </P>
                <P>
                    (3) 
                    <E T="03">Type of Request:</E>
                     Three-year extension with changes;
                </P>
                <P>
                    (4) 
                    <E T="03">Purpose:</E>
                     The central mission of the U.S. Energy Information Administration (EIA), as established by the Department of Energy (DOE) Organization Act of 1977, is to collect, evaluate, assemble, analyze, and disseminate energy data. Section 7135 specifies that, among other characteristics, the data should be relevant to the adequacy of energy resources to meet demand. The EIA-860, Annual Electric Power Industry Report, is a critical tool for this mission, maintaining a census of U.S. electricity generating units with a capacity of 1 megawatt or greater, and informing DOE's emergency response activities, among other purposes.
                </P>
                <P>
                    On February 12, 2026, the Office of Management and Budget (OMB) granted emergency approval under the Paperwork Reduction Act (PRA) for EIA to immediately commence annual data collection on the EIA-860S. The purpose of this urgent collection is to ensure the EIA-860 sampling frame comprehensively covers the power generator population. This emergency request is critically important for enhancing the completeness and accuracy of the EIA-860 sampling frame, particularly in relation to backup generators. While the EIA-860 typically includes backup generators exceeding the 1 MW threshold, many are inconsistently reported or omitted due to capacity limitations or intermittent operation, resulting in significant data gaps. The absence of thorough data on these generators creates a substantial 
                    <PRTPAGE P="45802"/>
                    void in our understanding of the total U.S. grid capacity and overall resilience. This deficiency could impede effective emergency response and potentially lead to widespread power outages, economic disruptions, and loss of life. The reliable operation of the U.S. electrical grid is critically dependent on detailed information regarding its components, including backup generation facilities. EIA has observed unprecedented increases in electricity demand, with forecasts indicating sustained growth in 2026 and 2027, marking the strongest four-year growth period since the turn of the century. This escalating demand, coupled with existing capacity challenges, places significant strain on the national electric grid, posing risks to national and economic security.
                </P>
                <P>These concerns are underscored by three Executive Orders issued by President Donald J. Trump: Executive Order 14156, “Declaring a National Energy Emergency” (January 20, 2025), which cites “precariously inadequate and intermittent energy supply, and an increasingly unreliable grid”; Executive Order 14262, “Strengthening the Reliability and Security of the United States Electric Grid” (April 8, 2025), which highlights the strain on the grid from increased demand and the risk of unreliability; and Executive Order 14365, “Ensuring a National Policy Framework for Artificial Intelligence” (December 11, 2025), which notes an “unprecedented surge in electricity demand driven by rapid technological advancements, including the expansion of artificial intelligence data centers and increase in domestic manufacturing.”</P>
                <P>Further emphasizing the urgency are the 40 emergency orders issued by DOE under section 202(c) of the Federal Power Act (FPA) since January 2025, a stark increase compared to one such order in each of 2023 and 2024. These orders, affecting regions nationwide, inherently signify official declarations of an “emergency” within the electric power system. </P>
                <P>Due to the unanticipated nature of these circumstances and the urgent need to improve the sampling frame of the EIA-860 survey, EIA was unable to allow for the time periods normally required for clearance under the PRA before collecting this information. The approval granted by OMB is through August 31, 2026. EIA now seeks to extend clearance for the survey for an additional three years as an annual voluntary standby form. The implementation of this annual voluntary standby form will enable EIA to periodically collect administrative data, thereby enhancing the EIA-860 frame's completeness and accuracy through rigorous reconciliation and validation processes, while preserving the fundamental purpose and structural integrity of the primary EIA-860 survey.</P>
                <P>
                    (4a) Changes to Information Collection: Based on feedback received during the emergency data collection and the 60-day 
                    <E T="04">Federal Register</E>
                     Notice (FRN) comment period, EIA has revised this information collection to improve data accuracy and reduce respondent burden. Specifically, the estimated number of respondents has increased from 56 to 150 to account for jurisdictions where counties and regional air districts, rather than state-level agencies, issue air permits. The estimated reporting burden per response was increased from 5 hours to 10 hours, and the reporting status has been changed from mandatory to voluntary. To further mitigate respondent burden, EIA will implement a “web-scraping first” protocol for jurisdictions with public-facing air permit portals; respondents will only be requested to voluntarily report new air permits issued since their last reporting period. Finally, the survey instructions have been clarified to request air permits for all power generators, rather than limiting the scope to backup generators, which better aligns with respondents' standard record-keeping practices;
                </P>
                <P>
                    (5) 
                    <E T="03">Annual Estimated Number of Respondents:</E>
                     150;
                </P>
                <P>
                    (6) 
                    <E T="03">Annual Estimated Number of Total Responses:</E>
                     150;
                </P>
                <P>
                    (7) 
                    <E T="03">Annual Estimated Number of Burden Hours:</E>
                     1,500;
                </P>
                <P>
                    (8) 
                    <E T="03">Annual Estimated Reporting and Recordkeeping Cost Burden:</E>
                     The cost of the burden hours is estimated to be $142,410 (1,500 burden hours times $94.94 per hour). EIA estimates that respondents will have no additional costs associated with the surveys other than the burden hours and maintenance of the information as part of the normal course of business.
                </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 July 15, 2026.</DATED>
                    <NAME>Pushpal Mukhopadhyay,</NAME>
                    <TITLE>Director, Office of Statistical Methods &amp; Research, U. S. Energy Information Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14660 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. AD26-7-000]</DEPDOC>
                <SUBJECT>PJM Governance and Stakeholder Reforms; Third Supplemental Notice of Commission-Led Technical Conference</SUBJECT>
                <P>As announced in the May 12, 2026 Notice, the June 5, 2026 Supplemental Notice, and the July 2, 2026 Second Supplemental Notice in the above-referenced proceeding, the Federal Energy Regulatory Commission (Commission) will convene a Chairman and Commissioner-led technical conference. The one-day technical conference will take place from 9:00 a.m. to 4:00 p.m. Eastern Time on Thursday, July 23, 2026, in the Kevin J. McIntyre Commission Meeting Room at the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426.</P>
                <P>The purpose of this technical conference is to discuss PJM Interconnection, L.L.C.'s (PJM) governance and stakeholder processes, with a particular focus on identifying and evaluating concrete, actionable reforms to improve PJM's ability to address operational and market needs in a timely and efficient manner. The conference will explore specific governance features and stakeholder processes in PJM that impact timely action on operational and market needs. The conference will also explore potential reforms to PJM governance structure and stakeholder processes. An updated agenda for this conference is attached to this Third Supplemental Notice.</P>
                <P>Commission staff will post pre-filed statements submitted by panelists on the FERC technical conference web page prior to the conference and in eLibrary. With the exception of the opening statements of invited speakers, all other panels will proceed immediately to questions from the Chairman and Commissioners.</P>
                <P>Prior to the technical conference, all interested persons are also invited to file in the docket captioned above comments on the issues to be discussed at the conference, including on the questions listed in the attached agenda. Commenters need not answer all the questions but are encouraged to organize responses using the numbering and sequencing in the attached agenda.</P>
                <P>
                    The Commission will not discuss any specific proceeding pending before the Commission at this technical conference. Consistent with that 
                    <PRTPAGE P="45803"/>
                    approach to this technical conference, panelists and commenters should not address specific proceedings pending before the Commission in their respective pre-filed statements and comments. Pending proceedings before the Commission that may involve issues related to the agenda for this technical conference include, but are not limited to:
                </P>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,p1,8/9,i1" CDEF="s200,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Constellation Energy Generation, LLC v. PJM Interconnection, L.L.C</ENT>
                        <ENT>Docket No. EL25-20.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PJM Interconnection, L.L.C</ENT>
                        <ENT>Docket No. EL25-49.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PJM Interconnection, L.L.C</ENT>
                        <ENT>Docket No. EL26-67.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PJM Interconnection, L.L.C</ENT>
                        <ENT>Docket No. ER26-455.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Virginia Electric and Power Company</ENT>
                        <ENT>Docket No. ER26-744.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PJM Interconnection, L.L.C</ENT>
                        <ENT>Docket No. ER26-751.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PJM Interconnection, L.L.C</ENT>
                        <ENT>Docket No. ER26-1479.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">PJM Interconnection, L.L.C</ENT>
                        <ENT>Docket No. ER26-1563.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The technical conference will be open to the public. Advance registration is not required, and there is no fee for attendance. Information will also be posted on the Calendar of Events on the Commission's website, 
                    <E T="03">www.ferc.gov,</E>
                     prior to the event. To stay apprised of issuances in this docket, there is an “eSubscription” link on the Commission's website that enables subscribers to receive email notification when a document is added to a subscribed docket.
                </P>
                <P>
                    The technical conference will be transcribed and webcast. Transcripts will be available for a fee from Ace Reporting (202-347-3700). A link to the webcast of this event will be available in the Commission Calendar of Events at 
                    <E T="03">www.ferc.gov.</E>
                     The Commission provides technical support for the free webcasts. Please call 202-502-8680 or email 
                    <E T="03">customer@ferc.gov</E>
                     if you have any questions.
                </P>
                <P>
                    Commission technical conferences are accessible under section 508 of the Rehabilitation Act of 1973. For accessibility accommodations, please send an email to 
                    <E T="03">accessibility@ferc.gov</E>
                     or call toll free 1-866-208-3372 (voice) or 202-208-8659 (TTY) or send a fax to 202-208-2106 with the required accommodations.
                </P>
                <P>
                    For more information about this technical conference, please contact Alandro Valdez at 
                    <E T="03">alandro.valdez@ferc.gov</E>
                     or 202-502-8986. For legal information, please contact Emmett Barnes at 
                    <E T="03">emmett.barnes@ferc.gov</E>
                     or 202-502-8413.
                </P>
                <EXTRACT>
                    <FP>(Authority: 16 U.S.C. 825h.)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14691 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CP26-540-000]</DEPDOC>
                <SUBJECT>Tennessee Gas Pipeline Company, L.L.C.; Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed South Texas Enhancement Project</SUBJECT>
                <P>The staff of the Federal Energy Regulatory Commission (FERC or Commission) will prepare an environmental document that will discuss the environmental impacts of the South Texas Enhancement Project (STEP or Project) involving construction and operation of facilities by Tennessee Gas Pipeline Company L.L.C. (TGP) in Brooks and Nueces Counties, Texas. The Commission will use this environmental document in its decision-making process to determine whether the project is in public convenience and necessity.</P>
                <P>
                    This notice announces the opening of the scoping process the Commission will use to gather input from the public and interested agencies regarding the project. As part of the National Environmental Policy Act (NEPA) review process, the Commission takes into account concerns the public may have about proposals and the environmental impacts that could result from its action whenever it considers the issuance of a Certificate of Public Convenience and Necessity. This gathering of public input is referred to as “scoping.” The main goal of the scoping process is to focus the analysis in the environmental document on the important environmental issues. Additional information about the Commission's NEPA process is described below in the 
                    <E T="03">NEPA Process and Environmental Document</E>
                     section of this notice.
                </P>
                <P>
                    By this notice, the Commission requests public comments on the scope of issues to address in the environmental document. To ensure that your comments are timely and properly recorded, please submit your comments so that the Commission receives them in Washington, DC on or before 5:00 p.m. Eastern Time on August 17, 2026. Comments may be submitted in written form. Further details on how to submit comments are provided in the 
                    <E T="03">Public Participation</E>
                     section of this notice.
                </P>
                <P>Your comments should focus on the potential environmental effects, reasonable alternatives, and measures to avoid or lessen environmental impacts. Your input will help the Commission staff determine what issues they need to evaluate in the environmental document. Commission staff will consider all written comments during the preparation of the environmental document.</P>
                <P>If you submitted comments on this project to the Commission before the opening of this docket on June 5, 2026, you will need to file those comments in Docket No. CP26-540-000 to ensure they are considered as part of this proceeding.</P>
                <P>This notice is being sent to the Commission's current environmental mailing list for this project. State and local government representatives should notify their constituents of this proposed project and encourage them to comment on their areas of concern.</P>
                <P>
                    If you are a landowner receiving this notice, a pipeline company representative may contact you about the acquisition of an easement to construct, operate, and maintain the proposed facilities. The company would seek to negotiate a mutually acceptable easement agreement. You are not required to enter into an agreement. However, if the Commission approves the project, the Natural Gas Act conveys the right of eminent domain to the company. Therefore, if you and the company do not reach an easement agreement, the pipeline company could initiate condemnation proceedings in court. In such instances, compensation would be determined by a judge in accordance with state law. The 
                    <PRTPAGE P="45804"/>
                    Commission does not subsequently grant, exercise, or oversee the exercise of that eminent domain authority. The courts have exclusive authority to handle eminent domain cases; the Commission has no jurisdiction over these matters.
                </P>
                <P>
                    TGP provided landowners with a fact sheet prepared by the FERC entitled “An Interstate Natural Gas Facility On My Land? What Do I Need To Know?” which addresses typically asked questions, including the use of eminent domain and how to participate in the Commission's proceedings. This fact sheet along with other landowner topics of interest are available for viewing on the FERC website (
                    <E T="03">www.ferc.gov</E>
                    ) under the Natural Gas, Landowner Topics link.
                </P>
                <HD SOURCE="HD1">Public Participation</HD>
                <P>
                    There are three methods you can use to submit your comments to the Commission. Please carefully follow these instructions so that your comments are properly recorded. The Commission encourages electronic filing of comments and has staff available to assist you at (866) 208-3676 or 
                    <E T="03">FercOnlineSupport@ferc.gov.</E>
                </P>
                <P>
                    (1) You can file your comments electronically using the eComment feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to FERC Online. Using eComment is an easy method for submitting brief, text-only comments on a project;
                </P>
                <P>
                    (2) You can file your comments electronically by using the eFiling feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to FERC Online. With eFiling, you can provide comments in a variety of formats by attaching them as a file with your submission. New eFiling users must first create an account by clicking on “eRegister.” You will be asked to select the type of filing you are making; a comment on a particular project is considered a “Comment on a Filing”; or
                </P>
                <P>(3) You can file a paper copy of your comments by mailing them to the Commission. Be sure to reference the project docket number (CP26-540-000) in your letter. Submissions sent via the U.S. Postal Service must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426. Submissions sent via any other carrier must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.</P>
                <P>
                    Additionally, the Commission offers a free service called eSubscription which makes it easy to stay informed of all issuances and submittals regarding the dockets/projects to which you subscribe. These instant email notifications are the fastest way to receive notification and provide a link to the document files which can reduce the amount of time you spend researching proceedings. Go to 
                    <E T="03">https://www.ferc.gov/ferc-online/overview</E>
                     to register for eSubscription.
                </P>
                <P>
                    For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, contact the Office of Public Participation at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <HD SOURCE="HD1">Summary of the Proposed Project</HD>
                <P>TGP proposes to construct, install, modify, operate, and maintain interstate, natural gas transmission pipeline, metering, and compression facilities in Brooks and Nueces Counties in Texas. The STEP would reallocate and create a total of about 319,000 dekatherms per day of natural gas to be moved from existing receipt points in Hidalgo, Starr and Jim Wells Counties to the Agua Dulce area in Nueces County, Texas. According to TGP, the Project would meet shippers' increasing demands for additional and more reliable natural gas service.</P>
                <P>The STEP would consist of the following facilities:</P>
                <P>
                    • 1.54 miles of 30-inch-diamater pipeline connecting three existing natural gas transmission systems in Nueces County, Texas; 
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         A pipeline loop is a segment of pipe constructed parallel to an existing pipeline to increase capacity. A “pig” is a tool that the pipeline company inserts into and pushes through the pipeline for cleaning the pipeline, conducting internal inspections, or other purposes.
                    </P>
                </FTNT>
                <P>• Modifications to three existing meter stations located in Nueces County, Texas;</P>
                <P>• Construction of a new 15,900 horsepower compressor station in Brooks County, Texas;</P>
                <P>• Installation of an overpressure protection facility regulation skid to tie the newly constructed STEP Loop into TGP's existing system;</P>
                <P>
                    • Installation of a mainline line valve and pig trap 
                    <SU>1</SU>
                     facility on STEP Loop corridor adjacent to the proposed OPP facility;
                </P>
                <P>• Construction of associated facilities including access roads and contractor yards necessary to support the construction and operation of the Project.</P>
                <P>
                    The general location of the project facilities is shown in appendix 1.
                    <SU>2</SU>
                    <FTREF/>
                     Figure 1 shows the location of the proposed pipeline loop and meter stations to be upgraded in Nueces, County, TX. Figure 2 shows the location of the proposed new compressor station in Brooks County, TX.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The appendices referenced in this notice will not appear in the 
                        <E T="04">Federal Register</E>
                        . Copies of the appendices were sent to all those receiving this notice in themail and are available at 
                        <E T="03">www.ferc.gov</E>
                         using the link called “eLibrary.” For instructions on connecting to eLibrary, refer to the last page of this notice. For assistance, contact FERC at 
                        <E T="03">FERCOnlineSupport@ferc.gov</E>
                         or call toll free, (886) 208-3676 or TTY (202) 502-8659.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Land Requirements for Construction</HD>
                <P>Construction of the proposed facilities would disturb about 73.60 acres of land for the aboveground facilities and the pipeline. Following construction, TGP would maintain about 32.45 acres for permanent operation of the project's facilities; the remaining acreage would be restored and revert to former uses. The proposed pipeline route would be located near existing natural gas transmission infrastructure.</P>
                <HD SOURCE="HD1">NEPA Process and the Environmental Document</HD>
                <P>Any environmental document issued by the Commission will discuss impacts that could occur as a result of the construction and operation of the proposed project under the relevant general resource areas:</P>
                <P>• geology and soils;</P>
                <P>• water resources and wetlands;</P>
                <P>• vegetation and wildlife;</P>
                <P>• threatened and endangered species;</P>
                <P>• cultural resources;</P>
                <P>• land use;</P>
                <P>• air quality and noise;</P>
                <P>• reliability and safety; and</P>
                <P>• socioeconomics.</P>
                <P>Commission staff will also evaluate reasonable alternatives to the proposed project or portions thereof. They will make recommendations on how to lessen or avoid impacts on the various resource areas. Your comments will help Commission staff identify and focus on the issues that might have an effect on the human environment and potentially eliminate others from further study and discussion in the environmental document.</P>
                <P>
                    Following this scoping period, Commission staff will determine whether to prepare an Environmental Assessment (EA) or an Environmental Impact Statement (EIS). The EA or the EIS will present Commission staff's independent analysis of the issues. If Commission staff prepares an EA, a 
                    <E T="03">Notice of Schedule for the Preparation of an Environmental Assessment</E>
                     will be issued. The EA may be issued for an allotted public comment period. The Commission would consider timely 
                    <PRTPAGE P="45805"/>
                    comments on the EA before making its decision regarding the proposed project. If Commission staff prepares an EIS, a 
                    <E T="03">Notice of Intent to Prepare an EIS/Notice of Schedule</E>
                     will be issued, which will open up an additional comment period. Staff will then prepare a draft EIS which will be issued for public comment. Commission staff will consider all timely comments received during the comment period on the draft EIS and revise the document, as necessary, before issuing a final EIS. Any EA or draft and final EIS will be available in electronic format in the public record through eLibrary 
                    <SU>3</SU>
                    <FTREF/>
                     and the Commission's natural gas environmental documents web page (
                    <E T="03">https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents</E>
                    ). If eSubscribed, you will receive instant email notification when the environmental document is issued.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         For instructions on connecting to eLibrary, refer to the last page of this notice.
                    </P>
                </FTNT>
                <P>
                    With this notice, the Commission is asking agencies with jurisdiction by law and/or special expertise with respect to the environmental issues of this project to formally cooperate in the preparation of the environmental document.
                    <SU>4</SU>
                    <FTREF/>
                     Agencies that would like to request cooperating agency status should follow the instructions for filing comments provided under the 
                    <E T="03">Public Participation</E>
                     section of this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Cooperating agency responsibilities are addressed in Section 107(a)(3) of NEPA (42 U.S.C. 4336(a)(3)).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Consultation Under Section 106 of the National Historic Preservation Act</HD>
                <P>
                    In accordance with the Advisory Council on Historic Preservation's implementing regulations for section 106 of the National Historic Preservation Act, the Commission is using this notice to initiate consultation with the applicable State Historic Preservation Office(s), and to solicit their views and those of other government agencies, interested Indian tribes, and the public on the project's potential effects on historic properties.
                    <SU>5</SU>
                    <FTREF/>
                     The environmental document for this project will document findings on the impacts on historic properties and summarize the status of consultations under section 106.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The Advisory Council on Historic Preservation's regulations are at Title 36, Code of Federal Regulations, Part 800. Those regulations define historic properties as any prehistoric or historic district, site, building, structure, or object included in or eligible for inclusion in the National Register of Historic Places.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Environmental Mailing List</HD>
                <P>The environmental mailing list includes federal, state, and local government representatives and agencies; elected officials; Native American Tribes; environmental and public interest groups; other interested parties; and local libraries and media outlets. This list also includes all affected landowners (as defined in the Commission's regulations) who are potential right-of-way grantors, whose property may be used temporarily for project purposes, or who own homes within certain distances of aboveground facilities, and anyone who submits comments on the project and includes a mailing address with their comments. Commission staff will update the environmental mailing list as the analysis proceeds to ensure that Commission notices related to this environmental review are sent to all individuals, organizations, and government entities interested in and/or potentially affected by the proposed project.</P>
                <P>If you need to make changes to your name/address, or if you would like to remove your name from themailing list, please complete one of the following steps:</P>
                <P>
                    (1) Send an email to 
                    <E T="03">GasProjectAddressChange@ferc.gov</E>
                     stating your request. You must include the docket number CP26-540-000 in your request. If you are requesting a change to your address, please be sure to include your name and the correct address. If you are requesting to delete your address from themailing list, please include your name and address as it appeared on this notice. This email address is unable to accept comments.
                </P>
                <P>Or</P>
                <P>
                    (2) Return the attached “
                    <E T="03">Mailing List Update Form”</E>
                     (appendix 2).
                </P>
                <HD SOURCE="HD1">Additional Information</HD>
                <P>
                    Additional information about the project is available from the FERC website at 
                    <E T="03">www.ferc.gov</E>
                     using the eLibrary link. Click on the eLibrary link, click on “General Search” and enter the docket number in the “Docket Number” field. Be sure you have selected an appropriate date range. For assistance, please contact FERC Online Support at 
                    <E T="03">FercOnlineSupport@ferc.gov</E>
                     or (866) 208-3676, or for TTY, contact (202) 502-8659. The eLibrary link also provides access to the texts of all formal documents issued by the Commission, such as orders, notices, and rulemakings.
                </P>
                <P>
                    Public sessions or site visits will be posted on the Commission's calendar located at 
                    <E T="03">https://www.ferc.gov/news-events/events</E>
                     along with other related information.
                </P>
                <EXTRACT>
                    <FP>(Authority: 18 CFR 2.1)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14687 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission </SUBAGY>
                <SUBJECT>Combined Notice of Filings #2</SUBJECT>
                <P>Take notice that the Commission received the following electric rate filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3169-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., Entergy Arkansas, LLC, Entergy Services, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Entergy Arkansas, LLC submits tariff filing per 35.13(a)(2)(iii: MSS-4R Nuclear Production Tax Credits to be effective 9/15/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/15/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260715-5162.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/5/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3170-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Entergy Services, LLC, System Energy Resources, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: System Energy Resources, Inc. submits tariff filing per 35.13(a)(2)(iii: SERI UPSA Production Tax Credits to be effective 9/15/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/15/26. 
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260715-5164.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/5/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3171-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Idaho Power Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Idaho Power—Great Basin Construction Agreement to be effective 7/16/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/15/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260715-5166.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/5/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3172-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     The Empire District Electric Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Request for Approval of Incentive Rate Treatments of The Empire District Electric Company.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/2/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260702-5248.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 7/23/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3173-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     AEP Texas Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: AEPTX-Gregory Power Partners Generation Interconnection Agreement to be effective 7/1/2026.
                    <PRTPAGE P="45806"/>
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5039.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3174-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     J.P. Morgan Ventures Energy Corporation.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: J.P. Morgan Ventures Energy Corp. MBR Rate Tariff Revision to be effective 9/15/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5043.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3175-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     RPCA STORAGE 1, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: RPCA Storage 1, LLC MBR Tariff to be effective 9/15/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5044.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3176-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     ISO New England Inc., New England Power Pool Participants Committee.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: ISO New England Inc. submits tariff filing per 35.13(a)(2)(iii: ISO-NE/NEPOOL; Rev. to Adjust Parameters for Day-Ahead Ancillary Services Market to be effective 9/14/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5063.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3177-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Midcontinent Independent System Operator, Inc., Michigan Electric Transmission Company, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Michigan Electric Transmission Company, LLC submits tariff filing per 35.13(a)(2)(iii: 2026-07-16_Metadata Clean Up for Schedule 33-METC Blackstart Template to be effective 8/24/2019.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5077.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3178-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Sebree Solar, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Shared Facilities Agreement—Sebree Solar I and II to be effective 7/17/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5098.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3179-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Puget Sound Energy, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Cancellation of Airgas ESCA to be effective 6/20/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5124.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3180-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Green Recurive Utility Service LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Baseline Tariff Filing—Data Infrastructure Carriage Tariff to be effective 7/16/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5137.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.</P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.
                </P>
                <P>
                    For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, contact the Office of Public Participation at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14689 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CX26-2-000]</DEPDOC>
                <SUBJECT>Order Adopting Categorical Exclusions From Tennessee Valley Authority Under the National Environmental Policy Act Notice of Adoption of Categorical Exclusions Under the National Environmental Policy Act</SUBJECT>
                <P>
                    On July 16, 2026, the Commission issued an order in Docket No. CX26-2-000, pursuant to section 109 of the National Environmental Policy Act (NEPA), 42 U.S.C. 4336c, adopting two categorical exclusions from the Tennessee Valley Authority (TVA) relating the development of recreation sites and public use areas. 
                    <E T="03">Order Adopting Categorical Exclusions from TVA under NEPA,</E>
                     196 FERC ¶ 61,037 (2026). The adopted categorical exclusions will be used for actions concerning water power projects.
                </P>
                <P>
                    The adoption becomes effective 31 days after the issuance date of the Commission's order, 
                    <E T="03">i.e.,</E>
                     on August 17, 2026.
                </P>
                <P>
                    The Commission provides all interested persons an opportunity to view and/or print the contents of its order via the internet through the Commission's Home Page (
                    <E T="03">http://www.ferc.gov</E>
                    ) using the “eLibrary” link. Enter the docket number excluding the last three digits in the docket number field to access the document. From FERC's Home Page on the internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field. User assistance is available for eLibrary and the FERC's website during normal business hours from FERC Online Support at 202-502-6652 (toll free at 1-866-208-3676) or email at 
                    <E T="03">ferconlinesupport@ferc.gov,</E>
                     or the Public Reference Room at (202) 502-8371, TTY (202) 502-8659. Email the Public Reference Room at 
                    <E T="03">public.referenceroom@ferc.gov.</E>
                </P>
                <P>
                    For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14685 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. IC26-25-000]</DEPDOC>
                <SUBJECT>Commission Information Collection Activities (FERC-725S); Comment Request; Extension</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Energy Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the requirements of the Paperwork Reduction Act of 1995, the Federal Energy Regulatory Commission (Commission or FERC) is soliciting 
                        <PRTPAGE P="45807"/>
                        public comment on the currently approved information collection FERC-725S (OMB Control No. 1902-0270), Emergency Preparedness and Operations (EOP) Reliability Standards. There are no proposed changes to the reporting requirements.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments on the collection of information are due August 20, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Send written comments on FERC-725S to OMB through 
                        <E T="03">https://www.reginfo.gov/public/do/PRA/icrPublicCommentRequest?ref_nbr=202607-1902-006.</E>
                         You can also visit 
                        <E T="03">https://www.reginfo.gov/public/do/PRAMain</E>
                         and use the drop-down under “Currently under Review” to select the “Federal Energy Regulatory Commission” where you can see the open opportunities to provide comments. Comments should be sent within 30 days of publication of this notice.
                    </P>
                    <P>
                        Please submit a copy of your comments to the Commission via email to 
                        <E T="03">DataClearance@FERC.gov.</E>
                         You must specify Docket No. (IC26-25-000) and the FERC Information Collection number (FERC-725S) in your email. If you are unable to file electronically, comments may be filed by USPS mail or by hand (including courier) delivery:
                    </P>
                    <P>
                        • 
                        <E T="03">Mail via U.S. Postal Service Only:</E>
                         Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street NE, Washington, DC 20426.
                    </P>
                    <P>
                        • 
                        <E T="03">All other delivery methods:</E>
                         Federal Energy Regulatory Commission, Secretary of the Commission, 12225 Wilkins Avenue Rockville, MD 20852.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         To view comments and issuances in this docket, please visit 
                        <E T="03">https://elibrary.ferc.gov/eLibrary/search.</E>
                         Once there, you can also sign up for automatic notification of activity in this docket.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Kayla Williams at 
                        <E T="03">DataClearance@FERC.gov,</E>
                         telephone at (202) 502-6468.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title:</E>
                     FERC-725S, Emergency Preparedness and Operations (EOP) Reliability Standards
                </P>
                <P>
                    <E T="03">OMB Control No.:</E>
                     1902-0270
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Three-year approval of the FERC-725S information collection requirements with no changes to the current reporting requirements.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The Electricity Modernization Act of 2005, which is Title XII of the Energy Policy Act of 2005 (EPAct 2005), includes section 215 to the Federal Power Act (FPA).
                    <SU>1</SU>
                    <FTREF/>
                     FPA section 215 requires a Commission-certified Electric Reliability Organization (ERO) to develop mandatory and enforceable Reliability Standards, subject to Commission review and approval. Section 215 of the FPA requires a Commission-certified ERO to develop mandatory and enforceable Reliability Standards, subject to Commission review and approval. In 2006, the Commission certified the North American Electric Reliability Corporation (NERC) as the ERO pursuant to section 215 of the FPA. FERC-725S consists of the following Emergency Preparedness and Operations (EOP) Reliability Standards.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         16 U.S.C. 824
                        <E T="03">o.</E>
                         The approved Reliability Standards are available on the Commission's eLibrary document retrieval system on the NERC website, 
                        <E T="03">www.nerc.com.</E>
                    </P>
                </FTNT>
                <P>• EOP-004-4 (Event Reporting),</P>
                <P>• EOP-005-3 (System Restoration from Blackstart Resources),</P>
                <P>• EOP-006-3 (System Restoration Coordination),</P>
                <P>• EOP-008-2 (Loss of Control Center Functionality),</P>
                <P>• EOP-010-1 (Geomagnetic Disturbance Operations),</P>
                <P>• EOP-011-4 (Emergency Operations), and</P>
                <P>• EOP-012-3 (Extreme Cold Weather Preparedness and Operations).</P>
                <P>These Reliability Standards enhance reliability by:</P>
                <P>(1) providing accurate reporting of events to NERC's event analysis group to analyze the impact on the reliability of the bulk electric system, staff estimates that for EOP-004-4, fifty percent of the applicable entities will have an annual reporting burden, and this is captured in the associated table below.</P>
                <P>(2) delineating the roles and responsibilities of entities that support system restoration from blackstart resources which generate power without the support of the bulk electric system (Reliability Standard EOP-005-3).</P>
                <P>(3) clarifying the procedures and coordination requirements for reliability coordinator personnel to execute system restoration processes (Reliability Standard EOP-006-3).</P>
                <P>(4) refining the required elements of an operating plan used to continue reliable operations of the bulk electric system in the event that primary control center functionality is lost (Reliability Standard EOP-008-2).</P>
                <P>(5) addressing the effects of operating Emergencies by ensuring each Transmission Operator and Balancing Authority has developed Operating Plan(s) to mitigate operating Emergencies, and that those plans are coordinated within a Reliability Coordinator Area (EOP-010-1).</P>
                <P>(6) streamlining the requirements for Emergency operations of Bulk Electric System. Attachment 1, which is incorporated into Requirements R2 and R6, provides the process and descriptions of the levels used by the Reliability Coordinator when communicating the condition of a Balancing Authority that is experiencing an Energy Emergency (EOP-011-4).</P>
                <P>(7) addressing the effects of operating in extreme cold weather by ensuring each Generator Owner has developed and implemented plan(s) to mitigate the reliability impacts of extreme cold weather on its applicable generating units (EOP-012-3).</P>
                <P>The applicable entities for different standards within the EOP family of standards include balancing authorities (BA, distribution providers (DP), distribution providers-underfrequency load shed (DP-UFLS), generator operators (GOP), generator owners (GO), reliability coordinators (RC), transmission operators (TOP) and transmission owners (TO). Estimate entity counts are taken from April 20, 2026, NERC Compliance Registration information.</P>
                <P>
                    <E T="03">Type of Respondents:</E>
                     Public utilities subject to the FPA.
                </P>
                <P>
                    <E T="03">Estimate of Annual Burden</E>
                     
                    <SU>2</SU>
                    <FTREF/>
                    <E T="03"> and cost</E>
                     
                    <SU>3</SU>
                    <FTREF/>
                    : With the exception of adjustments due to the Commission's recent experience with this information collection, the Commission estimates there will be no changes in the annual public reporting burden for the FERC-725S, as follows: 
                    <E T="51">4 5</E>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Burden is defined as the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. For further explanation of what is included in the information collection burden, refer to 5 Code of Federal Regulations 1320.3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The estimated hourly cost (salary plus benefits) is a combination of the following categories from the BLS website, 
                        <E T="03">http://www.bls.gov/oes/current/naics2_22.htm:</E>
                         75% of the average of an Electrical Engineer (17-2071) $71.19/hr., × .75 = 53.3925 ($53.39-rounded) ($53.39/hour); and 25% of an Information and Record Clerk (43-4199) $40.51/hr., $40.51 × .25 = 10.1275 ($10.13 rounded) ($10.13/hour), for a total ($53.39 + $10.13 = $63.52/hour)
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The number of respondents is based on NERC compliance registration information as of April 20, 2026.
                    </P>
                    <P>
                        <SU>5</SU>
                         For EOP-004-4 it is estimated that fifty percent of applicable entity will have an annual reporting burden and values in the table reflect that consideration (rounded up).
                    </P>
                </FTNT>
                <PRTPAGE P="45808"/>
                <GPOTABLE COLS="7" OPTS="L2(,0,),nj,p7,7/8,i1" CDEF="s50,r15,12,12,xs60,xs80,15">
                    <TTITLE>FERC-725S EOP-004-4  </TTITLE>
                    <TDESC>[Event reporting]</TDESC>
                    <BOXHD>
                        <CHED H="1">
                            Reliability standard and associated 
                            <LI>requirement</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>
                                respondents 
                                <E T="0731">4 5</E>
                            </LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>responses </LI>
                        </CHED>
                        <CHED H="1">
                            Average burden
                            <LI>&amp; cost per</LI>
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual burden
                            <LI>&amp; total</LI>
                            <LI>annual cost</LI>
                            <LI>rounded</LI>
                        </CHED>
                        <CHED H="1">
                            Cost per
                            <LI>respondent</LI>
                            <LI>($) </LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="s">
                        <ENT I="25"> </ENT>
                        <ENT>(1)</ENT>
                        <ENT>(2)</ENT>
                        <ENT>(1) * (2) = (3)</ENT>
                        <ENT>(4)</ENT>
                        <ENT>(3) * (4) = (5) </ENT>
                        <ENT>(5) ÷ (1)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annual review and record retention for EOP-004-4</ENT>
                        <ENT>6 (RC)</ENT>
                        <ENT>1</ENT>
                        <ENT>6</ENT>
                        <ENT>8 hrs. $508.16</ENT>
                        <ENT>48 hrs. $3,049</ENT>
                        <ENT>$508.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>49 (BA)</ENT>
                        <ENT>1</ENT>
                        <ENT>49</ENT>
                        <ENT>8 hrs. $508.16</ENT>
                        <ENT>392 hrs. $24,900</ENT>
                        <ENT>508.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>171 (TO)</ENT>
                        <ENT>1</ENT>
                        <ENT>171</ENT>
                        <ENT>8 hrs. $508.16</ENT>
                        <ENT>1,368 hrs. $86,896</ENT>
                        <ENT>508.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>85 (TOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>85</ENT>
                        <ENT>8 hrs. $508.16</ENT>
                        <ENT>680 hrs. $43,194</ENT>
                        <ENT>508.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>689 (GO)</ENT>
                        <ENT>1</ENT>
                        <ENT>689</ENT>
                        <ENT>8 hrs. $508.16</ENT>
                        <ENT>5,512 hrs. $350,122</ENT>
                        <ENT>508.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>508 (GOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>508</ENT>
                        <ENT>8 hrs. $508.16</ENT>
                        <ENT>4,064 hrs. $258,145</ENT>
                        <ENT>508.16</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="22"> </ENT>
                        <ENT>150 (DP)</ENT>
                        <ENT>1</ENT>
                        <ENT>150</ENT>
                        <ENT>8 hrs. $508.16</ENT>
                        <ENT>1,200 hrs. $76,224</ENT>
                        <ENT>508.16</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total EOP-004-4</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT>1,658</ENT>
                        <ENT/>
                        <ENT>13,264 hrs.; $842,530</ENT>
                        <ENT/>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="7" OPTS="L2(,0,),nj,p7,7/8,i1" CDEF="s50,r15,12,12,xs60,xs80,15">
                    <TTITLE>FERC-725S EOP-005-3</TTITLE>
                    <TDESC>[System restoration from blackstart resources]</TDESC>
                    <BOXHD>
                        <CHED H="1">
                            Reliability standard and associated 
                            <LI>requirement</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Annual 
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Average burden
                            <LI>&amp; cost per</LI>
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>burden &amp;</LI>
                            <LI>total annual</LI>
                            <LI>cost rounded</LI>
                        </CHED>
                        <CHED H="1">
                            Cost per
                            <LI>respondent</LI>
                            <LI>($) </LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="s">
                        <ENT I="25"> </ENT>
                        <ENT>(1)</ENT>
                        <ENT>(2)</ENT>
                        <ENT>(1) * (2) = (3)</ENT>
                        <ENT>(4)</ENT>
                        <ENT>(3) * (4) = (5) </ENT>
                        <ENT>(5) ÷ (1)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annual review and record retention for EOP-005-3</ENT>
                        <ENT>1,016 (GOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>1,016</ENT>
                        <ENT>16 hrs. $1,016.32</ENT>
                        <ENT>16,256 hrs. $1,032,581</ENT>
                        <ENT>$1,016.32</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>170 (TOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>170</ENT>
                        <ENT>24 hrs. 1,524.48</ENT>
                        <ENT>4,080 hrs. $259,162</ENT>
                        <ENT>1,524.48</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>341 (TO)</ENT>
                        <ENT>1</ENT>
                        <ENT>341</ENT>
                        <ENT>16 hrs. 1,016.32</ENT>
                        <ENT>5,456 hrs. $346,565</ENT>
                        <ENT>1,016.32</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="22"> </ENT>
                        <ENT>299 (DP)</ENT>
                        <ENT>1</ENT>
                        <ENT>299</ENT>
                        <ENT>16 hrs. 1,016.32</ENT>
                        <ENT>4,784 hrs. $303,880</ENT>
                        <ENT>1,016.32</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total EOP-005-3</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT>1,826</ENT>
                        <ENT/>
                        <ENT>30,576 hrs. $1,942,188</ENT>
                        <ENT/>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="7" OPTS="L2(,0,),nj,p7,7/8,i1" CDEF="s50,r15,12,12,xs60,xs80,15">
                    <TTITLE>FERC-725S EOP-006-3</TTITLE>
                    <TDESC>[System restoration coordination]</TDESC>
                    <BOXHD>
                        <CHED H="1">
                            Reliability standard and associated 
                            <LI>requirement</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents </LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent </LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>responses </LI>
                        </CHED>
                        <CHED H="1">
                            Average burden
                            <LI>&amp; cost per</LI>
                            <LI>response </LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>burden &amp;</LI>
                            <LI>total annual</LI>
                            <LI>cost rounded</LI>
                        </CHED>
                        <CHED H="1">
                            Cost per
                            <LI>respondent</LI>
                            <LI>($) </LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="s">
                        <ENT I="25"> </ENT>
                        <ENT>(1)</ENT>
                        <ENT>(2)</ENT>
                        <ENT>(1) * (2) = (3)</ENT>
                        <ENT>(4)</ENT>
                        <ENT>(3) * (4) = (5) </ENT>
                        <ENT>(5) ÷ (1)</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">Annual review and record retention for EOP-006-3</ENT>
                        <ENT>12 (RC)</ENT>
                        <ENT>1</ENT>
                        <ENT>12</ENT>
                        <ENT>48 hrs. $3,048.96</ENT>
                        <ENT>576 hrs. $36,588</ENT>
                        <ENT>$3,048.96</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total EOP-006-3</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT>12</ENT>
                        <ENT/>
                        <ENT>576 hrs. $36,588</ENT>
                        <ENT/>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="7" OPTS="L2(,0,),nj,p7,7/8,i1" CDEF="s50,r15,12,12,xs60,xs80,15">
                    <TTITLE>FERC-725S EOP-008-2</TTITLE>
                    <TDESC>[Loss of control center functionality]</TDESC>
                    <BOXHD>
                        <CHED H="1">
                            Reliability standard and associated 
                            <LI>requirement</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Annual 
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Average burden
                            <LI>&amp; cost per</LI>
                            <LI>response </LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>burden &amp;</LI>
                            <LI>total annual</LI>
                            <LI>cost rounded</LI>
                        </CHED>
                        <CHED H="1">
                            Cost per 
                            <LI>respondent</LI>
                            <LI>($) </LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="s">
                        <ENT I="25"> </ENT>
                        <ENT>(1)</ENT>
                        <ENT>(2)</ENT>
                        <ENT>(1) * (2) = (3)</ENT>
                        <ENT>(4)</ENT>
                        <ENT>(3) * (4) = (5) </ENT>
                        <ENT>(5) ÷ (1)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annual review and record retention for EOP-008-2</ENT>
                        <ENT>12 (RC)</ENT>
                        <ENT>1</ENT>
                        <ENT>12</ENT>
                        <ENT>24 hrs.; $1,524.48</ENT>
                        <ENT>288 hrs.; $18,294</ENT>
                        <ENT>$1524.48</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>170 (TOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>170</ENT>
                        <ENT>24 hrs.; $1,524.48</ENT>
                        <ENT>4,080 hrs.; $259,162</ENT>
                        <ENT>1524.48</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="22"> </ENT>
                        <ENT>98 (BA)</ENT>
                        <ENT>1</ENT>
                        <ENT>98</ENT>
                        <ENT>24 hrs.; $1,524.48</ENT>
                        <ENT>2,352 hrs.; $149,399</ENT>
                        <ENT>1524.48</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total EOP-008-2</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT>280</ENT>
                        <ENT/>
                        <ENT>6,720 hrs.; $426,854</ENT>
                        <ENT/>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="45809"/>
                <GPOTABLE COLS="7" OPTS="L2(,0,),nj,p7,7/8,i1" CDEF="s50,r15,12,12,xs60,xs80,15">
                    <TTITLE>FERC-725S EOP-010-1 </TTITLE>
                    <TDESC>[Geomagnetic disturbance operations]</TDESC>
                    <BOXHD>
                        <CHED H="1">
                            Reliability standard and associated 
                            <LI>requirement</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents </LI>
                        </CHED>
                        <CHED H="1">
                            Annual 
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Average burden
                            <LI>&amp; cost per</LI>
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">
                            Total annualLI&gt;burden &amp;
                            <LI>total annual</LI>
                            <LI>cost rounded</LI>
                        </CHED>
                        <CHED H="1">
                            Cost per
                            <LI>respondent</LI>
                            <LI>($)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="s">
                        <ENT I="25"> </ENT>
                        <ENT>(1)</ENT>
                        <ENT>(2)</ENT>
                        <ENT>(1) * (2) = (3)</ENT>
                        <ENT>(4)</ENT>
                        <ENT>(3) * (4) = (5) </ENT>
                        <ENT>(5) ÷ (1)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annual review and record retention for EOP-010-1</ENT>
                        <ENT>12 (RC)</ENT>
                        <ENT>1</ENT>
                        <ENT>12</ENT>
                        <ENT>20 hrs.; $1,270.40</ENT>
                        <ENT>240 hrs.; $15,245</ENT>
                        <ENT>$1,270.40</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="22"> </ENT>
                        <ENT>170 (TOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>170</ENT>
                        <ENT>20 hrs.; $1,270.40</ENT>
                        <ENT>3,400 hrs.; $215,968</ENT>
                        <ENT>1,270.40</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total EOP-010-1</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT>182</ENT>
                        <ENT/>
                        <ENT>3,640 hrs.; $231,213</ENT>
                        <ENT/>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="7" OPTS="L2(,0,),nj,p7,7/8,i1" CDEF="s50,r15,12,12,xs60,xs80,15">
                    <TTITLE>FERC-725S EOP-011-4</TTITLE>
                    <TDESC>[Emergency operations]</TDESC>
                    <BOXHD>
                        <CHED H="1">
                            Reliability standard and associated 
                            <LI>requirement</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents </LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>responses </LI>
                        </CHED>
                        <CHED H="1">
                            Average burden
                            <LI>&amp; cost per</LI>
                            <LI>response </LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>burden &amp; total annual</LI>
                            <LI>cost rounded</LI>
                        </CHED>
                        <CHED H="1">
                            Cost per
                            <LI>respondent </LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="s">
                        <ENT I="25"> </ENT>
                        <ENT>(1)</ENT>
                        <ENT>(2)</ENT>
                        <ENT>(1) * (2) = (3)</ENT>
                        <ENT>(4)</ENT>
                        <ENT>(3) * (4) = (5) </ENT>
                        <ENT>(5) ÷ (1)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annual review and record retention for EOP-011-4</ENT>
                        <ENT>12 (RC)</ENT>
                        <ENT>1</ENT>
                        <ENT>12</ENT>
                        <ENT>40 hrs.; $2,540.80</ENT>
                        <ENT>480 hrs.; $30,490</ENT>
                        <ENT>$2,540.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>98 (BA)</ENT>
                        <ENT>1</ENT>
                        <ENT>98</ENT>
                        <ENT>40 hrs.; $2,540.80</ENT>
                        <ENT>3,920 hrs.; $248,998</ENT>
                        <ENT>2,540.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>341 (TO)</ENT>
                        <ENT>1</ENT>
                        <ENT>341</ENT>
                        <ENT>40 hrs.; $2,540.80</ENT>
                        <ENT>13,640 hrs.; $866,413</ENT>
                        <ENT>2,540.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>170 (TOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>170</ENT>
                        <ENT>40 hrs.; $2,540.80</ENT>
                        <ENT>6,800 hrs.; $431,936</ENT>
                        <ENT>2,540.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>72 (DP-UFLS)</ENT>
                        <ENT>1</ENT>
                        <ENT>72</ENT>
                        <ENT>20 hrs.; $1,270.40</ENT>
                        <ENT>1,440 hrs.; $91,469</ENT>
                        <ENT>1,270.40</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="22"> </ENT>
                        <ENT>299 (DP)</ENT>
                        <ENT>1</ENT>
                        <ENT>299</ENT>
                        <ENT>40 hrs.; $2,540.80</ENT>
                        <ENT>11,960 hrs.; $759,699</ENT>
                        <ENT>2,540.80</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total EOP-011-4</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT>992</ENT>
                        <ENT/>
                        <ENT>38,240 hrs.; 2,429,005</ENT>
                        <ENT/>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="7" OPTS="L2(,0,),nj,p7,7/8,i1" CDEF="s50,r15,12,12,xs60,xs80,15">
                    <TTITLE>FERC-725S EOP-012-3 </TTITLE>
                    <TDESC>[Extreme cold weather preparedness and operations]</TDESC>
                    <BOXHD>
                        <CHED H="1">
                            Reliability standard and associated 
                            <LI>requirement</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Annual 
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total number of
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Average burden
                            <LI>&amp; cost per</LI>
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>burden &amp;</LI>
                            <LI>total annual cost</LI>
                        </CHED>
                        <CHED H="1">
                            Cost per
                            <LI>respondent</LI>
                            <LI>($)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="s">
                        <ENT I="25"> </ENT>
                        <ENT>(1)</ENT>
                        <ENT>(2)</ENT>
                        <ENT>(1) * (2) = (3)</ENT>
                        <ENT>(4)</ENT>
                        <ENT>(3) * (4) = (5) </ENT>
                        <ENT>(5) ÷ (1)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Annual review and record retention for EOP-012-3</ENT>
                        <ENT>1378 (GO)</ENT>
                        <ENT>1</ENT>
                        <ENT>1,378</ENT>
                        <ENT>40 hrs.; $2,540.80</ENT>
                        <ENT>55,120 hrs.; $3,501,222</ENT>
                        <ENT>$2,540.80</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="22"> </ENT>
                        <ENT>1016 (GOP)</ENT>
                        <ENT>1</ENT>
                        <ENT>1,016</ENT>
                        <ENT>50 hrs.; $3,176.00</ENT>
                        <ENT>50,800 hrs.; $3,226,816</ENT>
                        <ENT>3,176.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total EOP-012-3</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT>2,394</ENT>
                        <ENT/>
                        <ENT>105,920 hrs.; $6,728,038</ENT>
                        <ENT/>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Comments:</E>
                     Comments are invited on: (1) whether the collection of information is necessary for the proper performance of the functions of the Commission, including whether the information will have practical utility; (2) the accuracy of the agency's estimate of the burden and cost of the collection of information, 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>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14684 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission </SUBAGY>
                <SUBJECT>Combined Notice of Filings #1</SUBJECT>
                <P>Take notice that the Commission received the following exempt wholesale generator filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     EG26-276-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     RCPA Storage 1, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     RPCA Storage 1, LLC submits Notice of Self-Certification of Exempt Wholesale Generator Status.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/15/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260715-5131.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/5/26.
                </P>
                <P>Take notice that the Commission received the following electric rate filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER10-2253-017; ER10-3319-022.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Astoria Energy II LLC, Astoria Energy LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Northeast Region of Astoria Energy LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5409.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER10-2435-026; ER10-2440-017; ER26-787-001
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PowerTransitions Marketing LLC, Dartmouth Power Associates Limited Partnership, Camden Plant Holdings, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Updated Market Power Analysis for Northeast Region of Camden Plant Holdings, L.L.C., et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5410.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER15-1019-016; ER16-2226-007; ER22-2703-012.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Pattern Energy Management Services LLC, McHenry 
                    <PRTPAGE P="45810"/>
                    Battery Storage, LLC, Fowler Ridge IV Wind Farm LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Northeast Region of Fowler Ridge IV Wind Farm, LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5414.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER17-2386-008.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Great Bay Solar I, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 12/30/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5087.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER17-2386-009.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Great Bay Solar I, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 3/1/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5088.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER18-276-002; ER10-1618-023; ER10-1342-010.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     CP Energy Marketing (US) Inc., Rolling Hills Generating, L.L.C., Panda Hummel Station LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Northeast Region of Hummel Station LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5416.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER19-158-023; ER15-1456-015; ER21-2346-004; ER21-2347-004; ER10-2674-020; ER10-2585-011; ER11-2449-010; ER15-1598-014; ER15-1599-028; ER14-1569-028; ER25-12-006; ER10-2616-035; ER11-4400-032; ER20-1436-009; ER20-1438-009; ER19-2807-020; ER10-2421-020; ER12-1769-022; ER19-967-007; ER15-1600-013; ER15-748-011; ER15-1602-013; ER11-4634-014; ER10-1547-020; ER14-883-024; ER10-2619-018; ER13-2475-019; ER17-1906-007; ER12-192-022; ER15-1596-027; ER19-102-020; ER19-968-008; ER11-2457-020; ER10-2767-004; ER15-1605-013; ER10-1518-003; ER10-2617-017; ER10-2677-021; ER12-75-023; ER12-2253-021; ER12-2251-021; ER10-1975-036; ER10-2613-014; ER15-1457-015; ER14-2245-022; ER19-2811-019; ER19-2809-019; ER19-2803-018; ER19-2810-019; ER25-202-006; ER15-1607-013.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Dynegy Washington II, LLC, Vision Trading Company LLC, Viridian Energy PA, LLC, Cincinnati Bell Energy LLC, Viridian Energy NY, LLC, Viridian Energy, LLC, TriEagle Energy, LP, Syracuse, L.L.C., Sithe/Independence Power Partners, L.P., North Jersey Energy Associates, L.P., Public Power &amp; Utility of NY, Inc, Public Power &amp; Utility of Maryland, LLC, Public Power &amp; Utility, Inc., Pleasants Energy, LLC, Ontelaunee Power Operating Co., LLC, Milford Power Company, LLC, Dynegy Miami Fort, LLC, MASSPOWER, Massachusetts Gas &amp; Electric, Inc., Manchester Street, L.L.C., Luminant Energy Company LLC, Dynegy Commercial Asset Management, LLC, Liberty Electric Power, LLC, Lake Road Generating Company, LLC, Kincaid Generation, L.L.C., Dynegy Kendall Energy, LLC, Illinois Power Marketing Company, Hopewell Cogeneration Limited Partnership, Hazleton Generation LLC, Dynegy Hanging Rock II, LLC, Garrison Energy Center LLC, Dynegy Fayette II, LLC, Fairless Energy, L.L.C., Viridian Energy NG, LLC, Energy Services Providers, Inc., Energy Rewards, LLC, Energy Harbor Nuclear Generation LLC, Energy Harbor LLC, Dynegy Power Marketing, LLC, Dynegy Marketing and Trade, LLC, Dynegy Energy Services Mid-Atlantic, LLC, Dynegy Energy Services, LLC, Dynegy Energy Services (East), LLC, Dynegy Dicks Creek, LLC, Connecticut Gas &amp; Electric, Inc., Casco Bay Energy Company, LLC, Calumet Energy Team, LLC, Blackstone Power Generation LLC, Bellingham Power Generation LLC, Beaver Falls, L.L.C., Ambit Northeast, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Northeast Region of Ambit Northeast, LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5413.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER19-1195-008.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     GSG 6, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 12/30/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5093.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER19-1195-009.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     GSG 6, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 3/1/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5095.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER19-1506-008.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Minonk Wind, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 12/30/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5100.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER19-1506-009.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Minonk Wind, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 3/1/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5104.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER20-1385-005; ER22-1103-004; ER22-210-003; ER17-1370-015; ER16-581-016; ER16-2271-015; ER22-1929-004; ER21-1254-009; ER21-1498-004; ER10-3194-011; ER10-3195-012; ER22-1945-004; ER22-1927-004; ER22-1928-004; ER20-1853-004.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Whitehorn Solar LLC, Bracewell LLP, Salt City Solar LLC, Bracewell LLP, Sunnybrook Farm Solar, LLC, Bracewell LLP, Powells Creek Farm Solar, LLC, MATEP Limited Partnership, MATEP LLC, Hawtree Creek Farm Solar, LLC, Genbright LLC, Bracewell LLP, ENGIE Solidago Solar LLC, ENGIE Resources LLC, ENGIE Portfolio Management, LLC, ENGIE Energy Marketing NA, Inc., ENGIE 2020 ProjectCo-NH1 LLC, BRP Capital &amp; Trade LLC, Bluestone Farm Solar, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Northeast Region of Bluestone Farm Solar, LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5415.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER20-2256-002; ER22-1698-005; ER23-1772-002; ER16-2227-006; ER24-1667-001; ER15-1045-007.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Pilot Hill Wind, LLC, Morris Ridge Solar Energy Center, LLC, Kelly Creek Wind, LLC, Fox Squirrel Solar LLC, EDF Spring Field WPC, LLC, Copenhagen Wind Farm, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Northeast Region of Copenhagen Wind Farm, LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5408.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER21-1501-007.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Sandy Ridge Wind, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 12/30/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5107.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER21-1501-008.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Sandy Ridge Wind, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 3/1/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5111.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER21-1937-004.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Altavista Solar, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 6/1/2021.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5112.
                    <PRTPAGE P="45811"/>
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER21-1937-005.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Altavista Solar, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 6/1/2022.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5113.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER23-2112-005.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Sandy Ridge Wind 2, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 9/16/2023.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5123.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER23-2112-006.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Sandy Ridge Wind 2, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 6/1/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5125.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER23-2749-001; ER11-4589-005; ER23-1220-002.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     High Point Solar LLC, EcoGrove Wind, LLC, AEUG Union Solar, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Triennial Market Power Analysis for Northeast Region of AEUG Union Solar, LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     6/30/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260630-5411.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/31/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-81-005.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Shady Oaks Wind 2, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 12/15/2023.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5115.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-81-006.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Shady Oaks Wind 2, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Compliance Filing Regarding Effective Date to be effective 6/1/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5116.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-2244-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Hillsboro Solar, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Response to Deficiency Letter, Revised MBR Tariff, Request for Expedited Action to be effective 6/17/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5081.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-2699-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Sun Chief Solar Farm, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Response to Deficiency Letter, Revised MBR Tariff, Request for Expedited Action to be effective 7/13/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5086.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-2868-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Beekman PV I, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: MBR Application Supplement to be effective 9/1/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5075.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER26-3168-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Tucson Electric Power Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Service Agreement No. 647 to be effective 6/16/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/15/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260715-5155.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/5/26.
                </P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.</P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.
                </P>
                <P>
                    For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, contact the Office of Public Participation at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026. </DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14690 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CP26-549-000] </DEPDOC>
                <SUBJECT>ETC Tiger Pipeline, LLC; Notice of Application and Establishing Intervention Deadline</SUBJECT>
                <P>Take notice that on July 1, 2026, ETC Tiger Pipeline, LLC (ETC Tiger), 1300 Main Street, Houston, Texas, 77002 filed an application under section 7(c) of the Natural Gas Act (NGA) and Part 157 of the Commission's regulations requesting authorization for its Franklin Farms Project (Project). The Project consists of: (1) approximately 13.24 miles of new 36-inch-diameter greenfield pipeline (Franklin Farms Lateral); (2) the Franklin Farms Delivery Meter, the Bee Bayou Delivery Meter, and the Trio Farm Delivery Meter; (3) approximately 1.75 miles of 20-inch-diameter pipeline lateral (FF Trio Farm Lateral); (4) the MEP Receipt Meter, the Gulf South Pipeline Receipt Meter, the Gulf Crossing Pipeline Receipt Meter, and the Gulf Run Pipeline Bi-directional Meter; (5) three new mainline valves; and (6) related appurtenant facilities, all located in Richland Parish, Louisiana. The Project will provide approximately 1,000,000 dekatherms per day of firm transportation capacity to serve Entergy Louisiana, LLC's power generation facility for its Richland Parish Data Center. ETC Tiger estimates the total cost of the Project to be $137,388,622, all as more fully set forth in the application which is on file with the Commission and open for public inspection.</P>
                <P>
                    In addition to publishing the full text of this document in the 
                    <E T="04">Federal Register</E>
                    , the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the internet through the Commission's Home Page (
                    <E T="03">http://www.ferc.gov</E>
                    ). From the Commission's Home Page on the internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field.
                </P>
                <P>
                    User assistance is available for eLibrary and the Commission's website during normal business hours from FERC Online Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at 
                    <E T="03">ferconlinesupport@ferc.gov,</E>
                     or the Public Reference Room at (202) 502-
                    <PRTPAGE P="45812"/>
                    8371, TTY (202) 502-8659. Email the Public Reference Room at 
                    <E T="03">public.referenceroom@ferc.gov.</E>
                </P>
                <P>
                    Any questions regarding the application should be directed to Blair Lichtenwalter, Senior Director, Regulatory Affairs, ETC Tiger Pipeline, LLC, 1300 Main Street, Houston, Texas 77002, at (713) 989-2605. or by email at 
                    <E T="03">blair.lichtenwalter@energytransfer.com.</E>
                </P>
                <P>
                    Pursuant to section 157.9 of the Commission's Rules of Practice and Procedure,
                    <SU>1</SU>
                    <FTREF/>
                     within 90 days of this Notice the Commission staff will either: complete its environmental review and place it into the Commission's public record (eLibrary) for this proceeding; or issue a Notice of Schedule for Environmental Review. If a Notice of Schedule for Environmental Review is issued, it will indicate, among other milestones, the anticipated date for the Commission staff's issuance of the final environmental impact statement (FEIS) or environmental assessment (EA) for this proposal. The filing of an EA in the Commission's public record for this proceeding or the issuance of a Notice of Schedule for Environmental Review will serve to notify federal and state agencies of the timing for the completion of all necessary reviews, and the subsequent need to complete all federal authorizations within 90 days of the date of issuance of the Commission staff's FEIS or EA.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         18 CFR 157.9.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Public Participation</HD>
                <P>There are three ways to become involved in the Commission's review of this project: you can file comments on the project, you can protest the filing, and you can file a motion to intervene in the proceeding. There is no fee or cost for filing comments or intervening. The deadline for filing a motion to intervene is 5:00 p.m. Eastern Time on August 6, 2026. How to file protests, motions to intervene, and comments is explained below.</P>
                <P>
                    For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, contact the Office of Public Participation (OPP) at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <HD SOURCE="HD2">Comments</HD>
                <P>Any person wishing to comment on the project may do so. Comments may include statements of support or objections, to the project as a whole or specific aspects of the project. The more specific your comments, the more useful they will be.</P>
                <HD SOURCE="HD2">Protests</HD>
                <P>
                    Pursuant to sections 157.10(a)(4) 
                    <SU>2</SU>
                    <FTREF/>
                     and 385.211 
                    <SU>3</SU>
                    <FTREF/>
                     of the Commission's regulations under the NGA, any person 
                    <SU>4</SU>
                    <FTREF/>
                     may file a protest to the application. Protests must comply with the requirements specified in section 385.2001 
                    <SU>5</SU>
                    <FTREF/>
                     of the Commission's regulations. A protest may also serve as a motion to intervene so long as the protestor states it also seeks to be an intervenor.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         18 CFR 157.10(a)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         18 CFR 385.211.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Persons include individuals, organizations, businesses, municipalities, and other entities. 18 CFR 385.102(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         18 CFR 385.2001.
                    </P>
                </FTNT>
                <P>To ensure that your comments or protests are timely and properly recorded, please submit your comments on or before 5:00 p.m. Eastern Time on August 6, 2026.</P>
                <P>There are three methods you can use to submit your comments or protests to the Commission. In all instances, please reference the Project docket number CP26-549-000 in your submission.</P>
                <P>
                    (1) You may file your comments electronically by using the eComment feature, which is located on the Commission's website at 
                    <E T="03">www.ferc.gov</E>
                     under the link to Documents and Filings. Using eComment is an easy method for interested persons to submit brief, text-only comments on a project;
                </P>
                <P>
                    (2) You may file your comments or protests electronically by using the eFiling feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to Documents and Filings. With eFiling, you can provide comments in a variety of formats by attaching them as a file with your submission. New eFiling users must first create an account by clicking on “eRegister.” You will be asked to select the type of filing you are making; first select “General” and then select “Comment on a Filing”; or
                </P>
                <P>(3) You can file a paper copy of your comments or protests by mailing them to the following address below. Your written comments must reference the Project docket number (CP26-549-000).</P>
                <P>
                    <E T="03">To file via USPS:</E>
                     Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426.
                </P>
                <P>
                    <E T="03">To file via any other courier:</E>
                     Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852.
                </P>
                <P>
                    The Commission encourages electronic filing of comments (options 1 and 2 above) and has eFiling staff available to assist you at (202) 502-8258 or 
                    <E T="03">FercOnlineSupport@ferc.gov.</E>
                </P>
                <P>Persons who comment on the environmental review of this project will be placed on the Commission's environmental mailing list, and will receive notification when the environmental documents (EA or EIS) are issued for this project and will be notified of meetings associated with the Commission's environmental review process.</P>
                <P>
                    The Commission considers all comments received about the project in determining the appropriate action to be taken. 
                    <E T="03">However, the filing of a comment alone will not serve to make the filer a party to the proceeding</E>
                    . To become a party, you must intervene in the proceeding. For instructions on how to intervene, see below.
                </P>
                <HD SOURCE="HD2">Interventions</HD>
                <P>
                    Any person, which includes individuals, organizations, businesses, municipalities, and other entities,
                    <SU>6</SU>
                    <FTREF/>
                     has the option to file a motion to intervene in this proceeding. Only intervenors have the right to request rehearing of Commission orders issued in this proceeding and to subsequently challenge the Commission's orders in the U.S. Circuit Courts of Appeal.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         18 CFR 385.102(d).
                    </P>
                </FTNT>
                <P>
                    To intervene, you must submit a motion to intervene to the Commission in accordance with Rule 214 of the Commission's Rules of Practice and Procedure 
                    <SU>7</SU>
                    <FTREF/>
                     and the regulations under the NGA 
                    <SU>8</SU>
                    <FTREF/>
                     by the intervention deadline for the project, which is 5:00 p.m. Eastern Time on August 6, 2026. As described further in Rule 214, your motion to intervene must state, to the extent known, your position regarding the proceeding, as well as your interest in the proceeding. For an individual, this could include your status as a landowner, ratepayer, resident of an impacted community, or recreationist. You do not need to have property directly impacted by the project in order to intervene. For more information about motions to intervene, refer to the FERC website at 
                    <E T="03">https://www.ferc.gov/resources/guides/how-to/intervene.asp.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         18 CFR 385.214.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         18 CFR 157.10.
                    </P>
                </FTNT>
                <P>There are two ways to submit your motion to intervene. In both instances, please reference the Project docket number CP26-549-000 in your submission.</P>
                <P>
                    (1) You may file your motion to intervene by using the Commission's eFiling feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to Documents and Filings. New eFiling users must first create an account by clicking on 
                    <PRTPAGE P="45813"/>
                    “eRegister.” You will be asked to select the type of filing you are making; first select “General” and then select “Intervention.” The eFiling feature includes a document-less intervention option; for more information, visit 
                    <E T="03">https://www.ferc.gov/docs-filing/efiling/document-less-intervention.pdf.;</E>
                     or
                </P>
                <P>(2) You can file a paper copy of your motion to intervene, along with three copies, by mailing the documents to the address below. Your motion to intervene must reference the Project docket number CP26-549-000.</P>
                <P>
                    <E T="03">To file via USPS:</E>
                     Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426.
                </P>
                <P>
                    <E T="03">To file via any other courier:</E>
                     Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852.
                </P>
                <P>
                    The Commission encourages electronic filing of motions to intervene (option 1 above) and has eFiling staff available to assist you at (202) 502-8258 or 
                    <E T="03">FercOnlineSupport@ferc.gov.</E>
                </P>
                <P>
                    Protests and motions to intervene must be served on the applicant either by mail at: Blair Lichtenwalter, Senior Director, Regulatory Affairs, ETC Tiger Pipeline, LLC, 1300 Main Street, Houston, Texas 77002 or by email (with a link to the document) at 
                    <E T="03">blair.lichtenwalter@energytransfer.com.</E>
                     Any subsequent submissions by an intervenor must be served on the applicant and all other parties to the proceeding. Contact information for parties can be downloaded from the service list at the eService link on FERC Online. Service can be via email with a link to the document.
                </P>
                <P>
                    All timely, unopposed 
                    <SU>9</SU>
                    <FTREF/>
                     motions to intervene are automatically granted by operation of Rule 214(c)(1).
                    <SU>10</SU>
                    <FTREF/>
                     Motions to intervene that are filed after the intervention deadline are untimely, and may be denied. Any late-filed motion to intervene must show good cause for being late and must explain why the time limitation should be waived and provide justification by reference to factors set forth in Rule 214(d) of the Commission's Rules and Regulations.
                    <SU>11</SU>
                    <FTREF/>
                     A person obtaining party status will be placed on the service list maintained by the Secretary of the Commission and will receive copies (paper or electronic) of all documents filed by the applicant and by all other parties.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The applicant has 15 days from the submittal of a motion to intervene to file a written objection to the intervention.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         18 CFR 385.214(c)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         18 CFR 385.214(b)(3) and (d).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Tracking the Proceeding</HD>
                <P>
                    Throughout the proceeding, additional information about the project will be available from OPP at (202) 502-6595 or on the FERC website at 
                    <E T="03">www.ferc.gov</E>
                     using the “eLibrary” link as described above. The eLibrary link also provides access to the texts of all formal documents issued by the Commission, such as orders, notices, and rulemakings.
                </P>
                <P>
                    In addition, the Commission offers a free service called eSubscription which allows you to keep track of all formal issuances and submittals in specific dockets. This can reduce the amount of time you spend researching proceedings by automatically providing you with notification of these filings, document summaries, and direct links to the documents. For more information and to register, go to 
                    <E T="03">www.ferc.gov/docs-filing/esubscription.asp.</E>
                </P>
                <P>
                    <E T="03">Intervention Deadline:</E>
                     5:00 p.m. Eastern Time on August 6, 2026.
                </P>
                <EXTRACT>
                    <FP>(Authority: 18 CFR 2.1.)</FP>
                </EXTRACT>
                <SIG>
                    <DATED> Dated: July 16, 2026.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14686 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Combined Notice of Filings</SUBJECT>
                <P>Take notice that the Commission has received the following Natural Gas Pipeline Rate and Refund Report filings:</P>
                <HD SOURCE="HD1">Filings in Existing Proceedings</HD>
                <P>
                    <E T="03">Docket Numbers:</E>
                     PR26-42-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Louisiana River Market, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 284.123 Rate Filing: Application for Blanket Certificate—Supplemental Filing to be effective 7/16/2026.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/16/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260716-5003.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 8/6/26.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     RP26-339-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Trailblazer Pipeline Company LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Report Filing: TPC 2026-07-15 NGA Section 4 Rate Case Test Period Updates to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     7/15/26.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20260715-5130.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 7/27/26.
                </P>
                <P>Any person desiring to protest in any the above proceedings must file in accordance with Rule 211 of the Commission's Regulations (18 CFR 385.211) on or before 5:00 p.m. Eastern time on the specified comment date.</P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.
                </P>
                <P>
                    For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, contact the Office of Public Participation at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14688 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
                <DEPDOC>[357488]</DEPDOC>
                <SUBJECT>Sunshine Act Meeting; Open Commission Meeting Wednesday, July 22, 2026</SUBJECT>
                <DATE>July 15, 2026.</DATE>
                <P>The Federal Communications Commission will hold an Open Meeting on the subjects listed below on Wednesday, July 22, 2026 which is scheduled to commence at 10:30 a.m. in the Commission Meeting Room of the Federal Communications Commission, 45 L Street NE, Washington, DC.</P>
                <P>
                    While attendance at the Open Meeting is available to the public, the FCC headquarters building is not open access, and all guests must check in with and be screened by FCC security at the main entrance on L Street. Attendees at the Open Meeting will not be required to have an appointment but must otherwise comply with protocols outlined at: 
                    <E T="03">www.fcc.gov/visit.</E>
                     Open Meetings are streamed live at: 
                    <E T="03">www.fcc.gov/live</E>
                     and on the FCC's YouTube channel.
                    <PRTPAGE P="45814"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,nj,tp0,i1" CDEF="xs48,r50,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Item No.</CHED>
                        <CHED H="1">Bureau</CHED>
                        <CHED H="1">Subject</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>WIRELESS TELECOMMUNICATIONS</ENT>
                        <ENT>
                            <E T="03">TITLE:</E>
                             Upper C-band (3.98-4.2 GHz) (GN Docket No. 25-59); Expanding Flexible Use of the 3.7 to 4.2 GHz Band (GN Docket No. 18-122). 
                            <E T="03">SUMMARY:</E>
                             To maintain U.S. spectrum leadership, create a robust spectrum pipeline, and fulfill Congress' direction in the One Big Beautiful Bill Act, the Commission will consider a Report and Order, Order of Proposed Modification, and Order on Reconsideration that makes 160 megahertz of the Upper C-band available in the contiguous United States for flexible-use, next-generation terrestrial wireless services via a system of competitive bidding. The introduction of new wireless services may begin in December 2030, following the first tranche of adjacent band radio altimeter retrofits to be required by FAA. Among other steps, the item also adopts measures designed to ensure successful co-existence with adjacent band radio altimeters, creates a transition process to fairly and expeditiously relocate incumbent satellite operations, establishes rebates to support the FAA's radio altimeter retrofit requirements, and resolves various pending petitions for reconsideration related to the 2020 Report and Order and Order of Proposed Modification reconfiguring the Lower C-band.
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>SPACE</ENT>
                        <ENT>
                            <E T="03">TITLE:</E>
                             Space Modernization for the 21st Century (SB Docket No. 25-306). 
                            <E T="03">SUMMARY:</E>
                             The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would overhaul the Commission's rules for licensing space and earth stations to increase speed, predictability, and flexibility in order to support the American space economy. The Order would replace part 25 with a new rule part—part 100—that would create a “licensing assembly line” to process applications. The FNPRM would seek comment on and propose additional changes which build upon the new part 100.
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>CONSUMER &amp; GOVERNMENTAL AFFAIRS</ENT>
                        <ENT>
                            <E T="03">TITLE:</E>
                             Empowering Broadband Consumers Through Transparency (CG Docket No. 22-2); Delete, Delete, Delete (GN Docket No. 25-133). 
                            <E T="03">SUMMARY:</E>
                             The Commission will consider a Report and Order that would modify the broadband label rules to make labels easier to read and understand and more useful for consumers, while reducing compliance burdens on providers.
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>WIRELINE COMPETITION</ENT>
                        <ENT>
                            <E T="03">TITLE:</E>
                             Improving the Effectiveness of the Robocall Mitigation Database (WC Docket No. 24-213); Call Authentication Trust Anchor (WC Docket No. 17-97); Advanced Methods to Target and Eliminate Unlawful Robocalls (CG Docket No. 17-59). 
                            <E T="03">SUMMARY:</E>
                             The Commission will consider a Further Notice of Proposed Rulemaking that aims to materially strengthen the integrity of the United States voice ecosystem and further deter illegal calls by proposing measures to ensure that only legitimate, transparent, and accountable providers gain or maintain access to the Robocall Mitigation Database.
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5</ENT>
                        <ENT>OFFICE OF ENGINEERING &amp; TECHNOLOGY</ENT>
                        <ENT>
                            <E T="03">TITLE:</E>
                             Strengthening Rules Governing Dangerous Gear (ET Docket No. 21-232).
                            <E T="03"> SUMMARY:</E>
                             The Commission will consider a Third Report and Order and Third Further Notice of Proposed Rulemaking aimed at further strengthening national security in the equipment authorization program by closing component-level and supply-chain loopholes in the Commission's Covered List rules. The item would close the “component part loophole” by prohibiting authorization of devices that incorporate logic-bearing hardware components produced by Covered List entities; clarify that the marketing rules reach online marketplaces that list, distribute, or offer unauthorized equipment and require those marketplaces to display the FCC ID at the online point of sale; require full certification for any modification or permissive change made by a Covered List entity; and adopt a narrowed, statutorily-grounded definition of “critical infrastructure” in response to the D.C. Circuit's partial remand. The accompanying Further Notice would seek comment on bifurcating the Covered List into producer/provider-based and production location-based categories, enhancing supply-chain transparency through hardware and software bills of materials, and strengthening enforcement.
                        </ENT>
                    </ROW>
                </GPOTABLE>
                <STARS/>
                <P>
                    The meeting will be webcast at: 
                    <E T="03">www.fcc.gov/live.</E>
                     Open captioning will be provided as well as a text only version on the FCC website. Other reasonable accommodations for people with disabilities are available upon request. In your request, include a description of the accommodation you will need and a way we can contact you if we need more information. Last minute requests will be accepted but may be impossible to fill. Send an email to: 
                    <E T="03">fcc504@fcc.gov</E>
                     or call the Consumer &amp; Governmental Affairs Bureau at 202-418-0530.
                </P>
                <P>
                    Press Access—Members of the news media are welcome to attend the meeting and will be provided reserved seating on a first-come, first-served basis. Following the meeting, the Chairman may hold a news conference in which he will take questions from credentialed members of the press in attendance. Also, senior policy and legal staff will be made available to the press in attendance for questions related to the items on the meeting agenda. Commissioners may also choose to hold press conferences. Press may also direct questions to the Office of Media Relations (OMR): 
                    <E T="03">MediaRelations@fcc.gov.</E>
                     Questions about credentialing should be directed to OMR.
                </P>
                <P>
                    Additional information concerning this meeting may be obtained from the Office of Media Relations, (202) 418-0500. Audio/Video coverage of the meeting will be broadcast live with open captioning over the internet from the FCC Live web page at 
                    <E T="03">www.fcc.gov/live.</E>
                </P>
                <P>
                    <E T="03">Authority:</E>
                     This meeting is held, in accordance with the Government in the Sunshine Act (Sunshine Act), Public Law 94-409, as amended (5 U.S.C. 552b).
                </P>
                <SIG>
                    <PRTPAGE P="45815"/>
                    <FP>Federal Communications Commission</FP>
                    <NAME>Marlene Dortch,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14674 Filed 7-17-26; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 6712-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL MARITIME COMMISSION</AGENCY>
                <SUBJECT>Notice of Agreements Filed</SUBJECT>
                <P>
                    The Commission hereby gives notice of filing of the following agreement under the Shipping Act of 1984. Interested parties may submit comments, relevant information, or documents regarding the agreement to the Secretary by email at 
                    <E T="03">Secretary@fmc.gov,</E>
                     or by mail, Federal Maritime Commission, 800 North Capitol Street, Washington, DC 20573. Comments will be most helpful to the Commission if received within 12 days of the date this notice appears in the 
                    <E T="04">Federal Register</E>
                    , and the Commission requests that comments be submitted within 7 days on agreements that request expedited review. Copies of the agreement are available through the Commission's website (
                    <E T="03">www.fmc.gov</E>
                    ) or by contacting the Office of General Counsel at (202)-523-5740 or 
                    <E T="03">GeneralCounsel@fmc.gov.</E>
                </P>
                <P>
                    <E T="03">Agreement No.:</E>
                     201475.
                </P>
                <P>
                    <E T="03">Agreement Name:</E>
                     Indamex India-America Express-TII Slot Charter Agreement.
                </P>
                <P>
                    <E T="03">Parties:</E>
                     Hapag-Lloyd AG; and Ocean Network Express Pte. Ltd.
                </P>
                <P>
                    <E T="03">Filing Party:</E>
                     Wayne Rohde, Cozen O'Connor.
                </P>
                <P>
                    <E T="03">Synopsis:</E>
                     The Agreement authorizes Hapag-Lloyd to charter space to ONE in the trades between India and Oman, on the one hand, and ports on the U.S. East Coast, on the other hand.
                </P>
                <P>
                    <E T="03">Proposed Effective Date:</E>
                     7/16/2026.
                </P>
                <P>
                    <E T="03">Location: https://www2.fmc.gov/FMC.Agreements.Web/Public/AgreementHistory/92688.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Jennifer Everling,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14678 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6730-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">FEDERAL MARITIME COMMISSION</AGENCY>
                <DEPDOC>[Docket No. 25-29]</DEPDOC>
                <SUBJECT>MAC Industries Inc. dba MAC Container Line, Complainant v. COSCO Shipping Lines Co., Ltd., COSCO Shipping Lines (North America) Inc., and COSCO Shipping Lines (India) Private, Respondents; Notice of Filing of Amended Complaint</SUBJECT>
                <P>
                    Notice is given that an amended complaint has been filed with the Federal Maritime Commission (the “Commission”) by MAC Industries Inc. dba MAC Container Line (the “Complainant”) against COSCO Shipping Lines Co., Ltd. (COSCO), COSCO Shipping Lines (North America) Inc., and COSCO Shipping Lines (India) Private (the “Respondents”). Complainant states that the Commission has jurisdiction over the complaint pursuant to the Shipping Act of 1984, as amended, 46 U.S.C. 40101 
                    <E T="03">et seq.,</E>
                     and over Respondent COSCO as a “common carrier” and a vessel operating “ocean common carrier” and over COSCO Shipping Lines (North America) Inc. and COSCO Shipping Lines (India) Private as general agents of COSCO.
                </P>
                <P>Complainant is a non-vessel-operating common carrier headquartered in San Clemente, California.</P>
                <P>Complainant identifies Respondent COSCO as a global ocean carrier with its corporate office in Shanghai, China, conducting business in the United States through its general agent, Respondent COSCO Shipping Lines (North America) Inc., a company existing under the laws of Delaware with its principal place of business in Secaucus, New Jersey, and conducting business in India through Respondent COSCO Shipping Lines (India) Private, with a principal corporate office in Mumbai, India.</P>
                <P>Complainant alleges that Respondents violated 46 U.S.C. 41102(b)(2), 41102(c), 41102(d), and 41104(a)(2)(A), (a)(3), (a)(4)(C), (a)(4)(E), (a)(8), (a)(9), (a)(10), (a)(14) and (a)(15). Complainant alleges these violations arose from Respondents' unreasonable assessment of detention charges even after Respondents had taken control of the equipment in dispute, retaliatory actions against Complainant by way of refusing to accept future bookings, threatening to cancel and then canceling service contracts, and other acts or omissions by Respondents.</P>
                <P>An answer to the amended complaint must be filed with the Commission within 25 days after the date of service.</P>
                <P>
                    The full text of the amended complaint can be found in the Commission's electronic Reading Room at 
                    <E T="03">https://www2.fmc.gov/readingroom/proceeding/25-29/.</E>
                     This proceeding has been assigned to the Office of Administrative Law Judges. The initial decision of the presiding judge shall be issued by December 22, 2026, and the final decision of the Commission shall be issued by July 6, 2027.
                </P>
                <EXTRACT>
                    <FP>(Authority: 46 U.S.C. 41301; 46 CFR 502.61(c))</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Served: July 16, 2026.</DATED>
                    <NAME>David Eng,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14646 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6730-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL RESERVE SYSTEM</AGENCY>
                <SUBJECT>Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company</SUBJECT>
                <P>The notificants listed below have applied under the Change in Bank Control Act (Act) (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the applications are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).</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 paragraph 7 of the Act.
                </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, Benjamin W. McDonough, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551-0001, not later than August 5, 2026.</P>
                <P>
                    <E T="03">A. Federal Reserve Bank of Atlanta</E>
                     (Erien O. Terry, Assistant Vice President) 1000 Peachtree Street NE, Atlanta, Georgia 30309. Comments can also be sent electronically to 
                    <E T="03">Applications.Comments@atl.frb.org:</E>
                </P>
                <P>
                    1. 
                    <E T="03">
                        Hugh Wayne Clark, Red Boiling Springs, Tennessee; Hugh Clark, Brandon Clark, Emily Hagan, Kyra Gregory, Mali Clark, Avery Hagan, and Colter Hagan, and certain minor 
                        <PRTPAGE P="45816"/>
                        children, all of Lafayette, Tennessee;
                    </E>
                     as a group acting in concert, to retain voting shares of Macon Banctrust, Inc., and thereby indirectly retain voting shares of Macon Bank and Trust Company, both of Lafayette, Tennessee.
                </P>
                <SIG>
                    <P>Board of Governors of the Federal Reserve System.</P>
                    <NAME>Erin Cayce,</NAME>
                    <TITLE>Assistant Secretary of the Board. </TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14669 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL TRADE COMMISSION</AGENCY>
                <SUBJECT>Granting of Requests for Early Termination of the Waiting Period Under the Premerger Notification Rules</SUBJECT>
                <P>
                    Section 7A of the Clayton Act, 15 U.S.C. 18a, as added by Title II of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, requires persons contemplating certain mergers or acquisitions to give the Federal Trade Commission and the Assistant Attorney General advance notice and to wait designated periods before consummation of such plans. Section 7A(b)(2) of the Act permits the agencies, in individual cases, to terminate this waiting period prior to its expiration and requires that notice of this action be published in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>The following transactions were granted early termination—on the dates indicated—of the waiting period provided by law and the premerger notification rules. The listing for each transaction includes the transaction number and the parties to the transaction. The grants were made by the Federal Trade Commission and the Assistant Attorney General for the Antitrust Division of the Department of Justice. Neither agency intends to take any action with respect to these proposed acquisitions during the applicable waiting period.</P>
                <GPOTABLE COLS="3" OPTS="L2,nj,p1,8/9,i1" CDEF="xs54,xls12,r100">
                    <TTITLE>Early Terminations Granted</TTITLE>
                    <TDESC>[06/01/2026 through 06/30/2026]</TDESC>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/01/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00" RUL="s">
                        <ENT I="01">20251620</ENT>
                        <ENT>S</ENT>
                        <ENT>Ascension Health Alliance; Ambulatory TopCo, LLC; Ascension Health Alliance.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/03/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">20261369</ENT>
                        <ENT>G</ENT>
                        <ENT>RedBird IMI JV Aggregator, L.P.; Banijay Holding UK Limited; RedBird IMI JV Aggregator, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261370</ENT>
                        <ENT>G</ENT>
                        <ENT>Stephane Courbit; Banijay Holding UK Limited; Stephane Courbit.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261384</ENT>
                        <ENT>G</ENT>
                        <ENT>Nemetschek SE; Thoma Bravo Discover Fund III-P, L.P.; Nemetschek SE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261390</ENT>
                        <ENT>G</ENT>
                        <ENT>IREN Limited; Mirantis, Inc.; IREN Limited.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261394</ENT>
                        <ENT>G</ENT>
                        <ENT>Eli Lilly and Company; Ajax Therapeutics, Inc.; Eli Lilly and Company.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261402</ENT>
                        <ENT>G</ENT>
                        <ENT>Mr. Michael Angelakis; Life Time Group Holdings, Inc.; Mr. Michael Angelakis.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261403</ENT>
                        <ENT>G</ENT>
                        <ENT>Mr. Arkadiy Volozh; Hanrui Wang; Mr. Arkadiy Volozh.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261404</ENT>
                        <ENT>G</ENT>
                        <ENT>Hubbell Incorporated; Sentinel Capital Partners VII, L.P.; Hubbell Incorporated.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261408</ENT>
                        <ENT>G</ENT>
                        <ENT>Bayer AG; Perfuse Therapeutics, Inc.; Bayer AG.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261409</ENT>
                        <ENT>G</ENT>
                        <ENT>VG Enterprise Holdings LLC; Ty-Crop Holdings Ltd.; VG Enterprise Holdings LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261423</ENT>
                        <ENT>G</ENT>
                        <ENT>Aquarion Water Authority; Eversource Energy; Aquarion Water Authority.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261440</ENT>
                        <ENT>G</ENT>
                        <ENT>Strategic Value Special Situations Feeder Fund V, L.P.; New Fortress Energy Inc.; Strategic Value Special Situations Feeder Fund V, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261444</ENT>
                        <ENT>G</ENT>
                        <ENT>NTT, Inc.; WinWire Holdings, LLC; NTT, Inc.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">20261454</ENT>
                        <ENT>G</ENT>
                        <ENT>Solaris Energy Infrastructure, Inc.; Diane Lowrance; Solaris Energy Infrastructure, Inc.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/10/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00" RUL="s">
                        <ENT I="01">20261235</ENT>
                        <ENT>G</ENT>
                        <ENT>Otsuka Holdings Co., Ltd.; Transcend Therapeutics, Inc.; Otsuka Holdings Co., Ltd.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/11/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">20261395</ENT>
                        <ENT>G</ENT>
                        <ENT>LightBay Investment Partners II LP; Christopher W. Pace; LightBay Investment Partners II LP.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261418</ENT>
                        <ENT>G</ENT>
                        <ENT>John T. Kim; Amkor Technology, Inc.; John T. Kim.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261419</ENT>
                        <ENT>G</ENT>
                        <ENT>Susan Y. Kim; Amkor Technology, Inc.; Susan Y. Kim.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261437</ENT>
                        <ENT>G</ENT>
                        <ENT>Onto Innovation Inc.; Rigaku Holdings Corporation; Onto Innovation Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261441</ENT>
                        <ENT>G</ENT>
                        <ENT>Rigel Pharmaceuticals, Inc.; Arvinas, Inc.; Rigel Pharmaceuticals, Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261447</ENT>
                        <ENT>G</ENT>
                        <ENT>Belden Inc.; Vistance Networks, Inc.; Belden Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261462</ENT>
                        <ENT>G</ENT>
                        <ENT>BW Phoenix Co-Invest, L.P.; Estate of Hubert S. Finkelstein; BW Phoenix Co-Invest, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261465</ENT>
                        <ENT>G</ENT>
                        <ENT>Fengate Infrastructure Fund V (U.S.) LP; Estate of Hubert S. Finkelstein; Fengate Infrastructure Fund V (U.S.) LP.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261477</ENT>
                        <ENT>G</ENT>
                        <ENT>Astorg VIII SCSp; Thermo Fisher Scientific Inc.; Astorg VIII SCSp.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261479</ENT>
                        <ENT>G</ENT>
                        <ENT>AP X Lux Holdings, SCSp; Forvia SE; AP X Lux Holdings, SCSp.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261489</ENT>
                        <ENT>G</ENT>
                        <ENT>AP X Emma Holdings, L.P.; MidOcean Partners V, L.P.; AP X Emma Holdings, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261494</ENT>
                        <ENT>G</ENT>
                        <ENT>AP X Emma Holdings, L.P.; OPV Gem Aggregator LP; AP X Emma Holdings, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261498</ENT>
                        <ENT>G</ENT>
                        <ENT>ASSF IV HOS UTP 2, L.P. c/o ASSF Operating Manager IV, L.P.; Helix Energy Solutions Group, Inc.; ASSF IV HOS UTP 2, L.P. c/o ASSF Operating Manager IV, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261499</ENT>
                        <ENT>G</ENT>
                        <ENT>Helix Energy Solutions Group, Inc.; Hornbeck Offshore Services, Inc.; Helix Energy Solutions Group, Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261515</ENT>
                        <ENT>G</ENT>
                        <ENT>NRG Energy, Inc.; Q-Generation (VIII) Investment Partners, LLC; NRG Energy, Inc.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">20261519</ENT>
                        <ENT>G</ENT>
                        <ENT>Mercury Parent Holdings, Inc.; EdgeCo Holdings, L.P.; Mercury Parent Holdings, Inc.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/16/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">20261467</ENT>
                        <ENT>G</ENT>
                        <ENT>Chi Kin Kelvin Yeung; Vivasor Holding Company; Chi Kin Kelvin Yeung.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261468</ENT>
                        <ENT>G</ENT>
                        <ENT>Iridium Communications Inc.; Aireon Holdings LLC; Iridium Communications Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261472</ENT>
                        <ENT>G</ENT>
                        <ENT>AEIF 4 Aggregator SCSp; TrueNoord CF LP; AEIF 4 Aggregator SCSp.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="45817"/>
                        <ENT I="01">20261475</ENT>
                        <ENT>G</ENT>
                        <ENT>Strategic Value Special Situations Feeder Fund V, L.P.; Birdsboro Power Holdings II LLC; Strategic Value Special Situations Feeder Fund V, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261490</ENT>
                        <ENT>G</ENT>
                        <ENT>Thea Paola Angelini; Catalyst Pharmaceuticals, Inc.; Thea Paola Angelini.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261493</ENT>
                        <ENT>G</ENT>
                        <ENT>Mutares SE &amp; Co. KGaA; Saudi Arabian Oil Company; Mutares SE &amp; Co. KGaA.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261512</ENT>
                        <ENT>G</ENT>
                        <ENT>Teachers Insurance and Annuity Association of America; Schroders plc; Teachers Insurance and Annuity Association of America.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261514</ENT>
                        <ENT>G</ENT>
                        <ENT>STG Parent Topco, LLC; Reception Holdings, L.P.; STG Parent Topco, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261518</ENT>
                        <ENT>G</ENT>
                        <ENT>Suncoast Credit Union; Launch Credit Union; Suncoast Credit Union.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261531</ENT>
                        <ENT>G</ENT>
                        <ENT>Allianz SE; Joshua Motta; Allianz SE.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261533</ENT>
                        <ENT>G</ENT>
                        <ENT>Daiichi Life Group, Inc.; Genstar Capital Partners IX, L.P.; Daiichi Life Group, Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261545</ENT>
                        <ENT>G</ENT>
                        <ENT>Archimedes Tech SPAC Partners II Co.; Forge Nano, Inc.; Archimedes Tech SPAC Partners II Co.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261548</ENT>
                        <ENT>G</ENT>
                        <ENT>MARA Holdings, Inc.; FTAI Infrastructure Inc.; MARA Holdings, Inc.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">20261573</ENT>
                        <ENT>G</ENT>
                        <ENT>Partners Group Access PF 957 L. P.; Avenue Aviation Opportunities Fund II (Onshore), L.P.; Partners Group Access PF 957 L.P.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/18/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00" RUL="s">
                        <ENT I="01">20251894</ENT>
                        <ENT>S</ENT>
                        <ENT>Aurobindo Pharma Limited; Lannett Seller Holdco, Inc.; Aurobindo Pharma Limited.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/25/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">20261547</ENT>
                        <ENT>G</ENT>
                        <ENT>Global-E Online Ltd.; Passport Global Newco, Inc.; Global-E Online Ltd.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261559</ENT>
                        <ENT>G</ENT>
                        <ENT>Antonia Ax:son Johnson; Scott Glaze and Melissa Glaze; Antonia Ax:son Johnson.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261576</ENT>
                        <ENT>G</ENT>
                        <ENT>Bells Aggregator Limited Partnership; Phased Right Incorporated; Bells Aggregator Limited Partnership.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261584</ENT>
                        <ENT>G</ENT>
                        <ENT>Warren Equity Partners Fund IV, L.P.; Guardian Capital Partners Fund III (Q), L.P.; Warren Equity Partners Fund IV, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261592</ENT>
                        <ENT>G</ENT>
                        <ENT>EQT Active Core Infrastructure (No.3) SCSp; Americold Realty Trust, Inc.; EQT Active Core Infrastructure (No.3) SCSp.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261600</ENT>
                        <ENT>G</ENT>
                        <ENT>Mill Point Capital Partners III, L.P.; Total Safety Holdings LLC; Mill Point Capital Partners III, L.P.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261601</ENT>
                        <ENT>G</ENT>
                        <ENT>Elon Musk; Mesh Optical Technologies Corporation; Elon Musk.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261605</ENT>
                        <ENT>G</ENT>
                        <ENT>TPG Growth VI DE AIV I, LP; Broad Sky Partners, LP; TPG Growth VI DE AIV I, LP.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261611</ENT>
                        <ENT>G</ENT>
                        <ENT>Lennox International Inc.; Platinum Equity Small Cap Fund II, L.P. c/o Platinum Equity; Lennox International Inc.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">20261618</ENT>
                        <ENT>G</ENT>
                        <ENT>Harvest Partners IX (Parallel), L.P.; Keystone Capital Fund II, LP; Harvest Partners IX (Parallel), L.P.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/29/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00" RUL="s">
                        <ENT I="01">20260276</ENT>
                        <ENT>G</ENT>
                        <ENT>Highmark Health; Valley Medical Facilities, Inc.; Highmark Health.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">06/30/2026</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">20261580</ENT>
                        <ENT>G</ENT>
                        <ENT>Bristol-Myers Squibb Company; Jiangsu Hengrui Pharmaceuticals Co., Ltd.; Bristol-Myers Squibb Company.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261597</ENT>
                        <ENT>G</ENT>
                        <ENT>Travere Therapeutics, Inc.; Everest Medicines Limited; Travere Therapeutics, Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261599</ENT>
                        <ENT>G</ENT>
                        <ENT>Incyte Corporation; Star Therapeutics LLC; Incyte Corporation.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261619</ENT>
                        <ENT>G</ENT>
                        <ENT>TACHI-S CO., LTD; Marks Gatherway Inc.; TACHI-S CO., LTD.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261628</ENT>
                        <ENT>G</ENT>
                        <ENT>Ensign Natural Resources Holdings II LLC; ConocoPhillips; Ensign Natural Resources Holdings II LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261630</ENT>
                        <ENT>G</ENT>
                        <ENT>Accenture plc; Whalar Group Limited; Accenture plc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261634</ENT>
                        <ENT>G</ENT>
                        <ENT>CapVest Equity Partners V SCSp; Insignia Capital Partners, L.P.; CapVest Equity Partners V SCSp.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20261658</ENT>
                        <ENT>G</ENT>
                        <ENT>Hull Street Energy Partners III, L.P.; FirstLight Holding Inc.; Hull Street Energy Partners III, L.P.</ENT>
                    </ROW>
                </GPOTABLE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Theresa Kingsberry (phone: 202-326-3100), Program Support Specialist, Federal Trade Commission, Bureau of Competition, Premerger Notification Office, Washington, DC 20024.</P>
                    <SIG>
                        <P>By direction of the Commission.</P>
                        <NAME>Joel Christie,</NAME>
                        <TITLE>Acting Secretary.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14664 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6750-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Meeting of the Advisory Board on Radiation and Worker Health, Subcommittee for Procedure Reviews, National Institute for Occupational Safety and Health</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 meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Federal Advisory Committee Act, the Centers for Disease Control and Prevention (CDC) announces the following meeting for the Subcommittee on Procedures Reviews (SPR) of the Advisory Board on Radiation and Worker Health (ABRWH or the Advisory Board). This meeting is open to the public, but without an oral public comment period. The public is welcome to submit written comments in advance of the meeting, to the contact person below. The public is also welcome to listen to the meeting by joining the audio conference (information below). The audio conference line has 150 ports for callers.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting will be held on October 28, 2026, from 11 a.m. to 4:30 p.m., EDT.</P>
                    <P>Written comments must be received on or before October 21, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You may submit comments by mail or email to: Rashaun Roberts, Ph.D., Designated Federal Officer, National Institute for Occupational Safety and Health, Centers for Disease 
                        <PRTPAGE P="45818"/>
                        Control and Prevention, 1090 Tusculum Avenue, Mailstop C-24, Cincinnati, Ohio 45226. Email: 
                        <E T="03">ocas@cdc.gov.</E>
                    </P>
                    <P>Written comments received in advance of the meeting will be included in the official record of the meeting.</P>
                    <P>
                        <E T="03">Meeting Information:</E>
                         Audio Conference Call via FTS Conferencing. The USA toll-free dial-in number is 1-866-659-0537; the passcode is 9933701.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rashaun Roberts, Ph.D., Designated Federal Officer, National Institute for Occupational Safety and Health, Centers for Disease Control and Prevention, 1090 Tusculum Avenue, Mailstop C-24, Cincinnati, Ohio 45226, Telephone: (513) 533-6800, Email: 
                        <E T="03">ocas@cdc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Background:</E>
                     The Advisory Board was established under the Energy Employees Occupational Illness Compensation Program Act of 2000 to advise the President on a variety of policy and technical functions required to implement and effectively manage the compensation program. Key functions of the Advisory Board include providing advice on the development of probability of causation guidelines, which have been promulgated by the Department of Health and Human Services (HHS) as a final rule; advice on methods of dose reconstruction, which have also been promulgated by HHS as a final rule; advice on the scientific validity and quality of dose estimation and reconstruction efforts being performed for purposes of the compensation program; and advice on petitions to add classes of workers to the Special Exposure Cohort (SEC). In December 2000, the President delegated responsibility for funding, staffing, and operating the Advisory Board to HHS, which subsequently delegated this authority to the CDC. NIOSH implements this responsibility for CDC.
                </P>
                <P>The charter was issued on August 3, 2001, renewed at appropriate intervals, and rechartered under Executive Order 14109 (September 29, 2023) on March 22, 2024. Unless continued by the President, the Advisory Board will terminate on September 30, 2027, consistent with Executive Order 14354 of September 29, 2025. </P>
                <P>
                    <E T="03">Purpose:</E>
                     The Advisory Board is charged with (a) providing advice to the Secretary, HHS, on the development of guidelines under Executive Order 13179; (b) providing advice to the Secretary, HHS, on the scientific validity and quality of dose reconstruction efforts performed for this program; and (c) upon request by the Secretary, HHS, advising the Secretary on whether there is a class of employees at any Department of Energy facility who were exposed to radiation but for whom it is not feasible to estimate their radiation dose, and on whether there is reasonable likelihood that such radiation doses may have endangered the health of members of this class. The ABRWH Subcommittee on Procedure Reviews (SPR) is responsible for overseeing, tracking, and participating in the reviews of all procedures used in the dose reconstruction process by the NIOSH Division of Compensation Analysis and Support (DCAS) and its dose reconstruction contractor (Oak Ridge Associated Universities—ORAU).
                </P>
                <P>
                    <E T="03">Matters to be Considered:</E>
                     The agenda will include discussions on the following:
                </P>
                <P>1. Administrative items, including: a. SPR-approved documents for December Board meeting and b. Updated list of documents awaiting National Institute for Occupational Safety and Health (NIOSH) responses; 2. Carry-over items from June 5, 2026, SPR Meeting including a. DCAS-PER-090, rev. 0 “Grand Junction Operation Office” presentation and b. ORAUT-TKBS-0016-4, rev. 02 “Mound Plant—Occupational Environmental Dose” presentation. 3. NIOSH responses to SC&amp;A reviews including: a DCAS-PER-040, rev. 0 ST4 “Mallinckrodt TBD (ORAUT-TKBS-0005) Revision, b. DCAS-PER-051, rev 0 ST-1-3 “Weldon Spring Plant Program, ” and c. DCAS-PER-073, rev. 0 “Birdsboro Steel and Foundry Company Program Evaluation Report”; 4. Documents with no SPR formal close-out: a. ORAUT-OTIB-0022, rev. 00 “Guidance on Wound Modeling for Internal Dose Reconstruction” presentation and b. ORAUT-OTIB-0011, rev. 00, “Tritium Calculated and Missed Dose Estimates” presentation, and 5. Recently issued SC&amp;A report: a. “Assessment of Professional Judgements in Six Case Reviews Performed under Program Evaluation Report” (PER)-017. Agenda items are subject to change as priorities dictate. For additional information, please contact Toll Free 1 (800) 232-4636.</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. 2026-14661 Filed 7-20-26; 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 Identifier: CMS-R-284 and CMS-10105]</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 September 21, 2026.</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” 
                        <PRTPAGE P="45819"/>
                        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 and associated materials (see 
                    <E T="02">ADDRESSES</E>
                    ).
                </P>
                <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>
                     Revision of a currently approved collection
                    <E T="03">; Title of Information Collection:</E>
                     Transformed—Medicaid Statistical Information System (T-MSIS)
                    <E T="03">; Use:</E>
                     The data reported in T-MSIS are used by federal, state, and local officials, as well as by private researchers and corporations to monitor past and projected future trends in the Medicaid and CHIP programs. The data provides the only national level information available on enrollees, beneficiaries, and expenditures. It also provides the only national level information available on Medicaid utilization. The information is the basis for analyses and for cost savings estimates for the Department's cost sharing legislative initiatives to Congress. The collected data are also crucial to our actuarial forecasts.
                </P>
                <P>Section 71109 of the Working Families Tax Cut legislation (WFTC) (Pub. L. 119-21) amended sections 1903(v) and 2107(e)(1) of the Social Security Act (the Act) by restricting, with limited exceptions, Federal Financial Participation (FFP) for medical assistance (Medicaid) and child or pregnancy-related health assistance (CHIP) to the following groups beginning October 1, 2026: (1) U.S. citizens and U.S. nationals; (2) Lawful Permanent Residents (LPRs); (3) Cuban/Haitian entrants; and (4) Compact of Free Association (COFA) migrants (collectively referred to as “FFP-eligible noncitizens”).</P>
                <P>The statutory amendments necessitate an update to the valid value set for the IMMIGRATION-STATUS data element reported to CMS through T-MSIS to accurately reflect updates to state eligibility determination processes and support compliance, program oversight, and proper FFP claiming. To support oversight of the implementation of changes to IMMIGRATION-STATUS, two valid values are being added to the ELIGIBILITY-TERMINATION-REASON data element to identify disenrollment reasons related to changes in immigration status or immigration verifications.</P>
                <P>The TRANSACTION-TYPE (FTX388) data element will be updated to include a new valid value with an effective date of October 1, 2026, for per-member-per-month home health service payments. These payments are already expected to be reported as part of state T-MSIS submissions but are not currently uniquely identifiable as states typically report these data in the “other” valid value. Implementation of this data element will support oversight of home health programs.</P>
                <P>We also propose three non-substantive changes that would not impact current state T-MSIS reporting. The purpose of these updates is to eliminate ambiguity and potentially reduce both CMS and state burden by reducing the need for technical assistance to address any questions on these topics.</P>
                <P>
                    <E T="03">Form Number:</E>
                     CMS-R-284 (OMB control number: 0938-0345)
                    <E T="03">; Frequency:</E>
                     Quarterly, monthly, and once
                    <E T="03">; Affected Public:</E>
                     State, Local, or Tribal Governments
                    <E T="03">; Number of Respondents:</E>
                     54
                    <E T="03">; Total Annual Responses:</E>
                     648
                    <E T="03">; Total Annual Hours:</E>
                     15,390. (For policy questions regarding this collection contact Brian Johnston at 410-786-0143.)
                </P>
                <P>
                    2. 
                    <E T="03">Type of Information Collection Request:</E>
                     Revision of a currently approved collection; 
                    <E T="03">Title of Information Collection:</E>
                     The In-Center Hemodialysis Consumer Assessment of Healthcare Providers and Systems Survey Mode Experiment; 
                    <E T="03">Use:</E>
                     The national implementation of the ICH CAHPS Survey is designed to allow third-party, CMS-approved survey vendors to administer the ICH CAHPS Survey using mail-only, telephone-only, or mixed (mail with telephone follow-up) modes of survey administration. Experience from previous CAHPS surveys shows that mail, telephone, and mail with telephone follow-up data collection modes work well for respondents, vendors, and health care providers. Any additional forms of information technology, such as web surveys, is under investigation as a potential survey option in this population.
                </P>
                <P>Data collected in the national implementation of the ICH CAHPS Survey are used for the following purposes:</P>
                <P>To provide a source of information from which selected measures can be publicly reported to beneficiaries as a decision aid for dialysis facility selection.</P>
                <P>To aid facilities with their internal quality improvement efforts and external benchmarking with other facilities.</P>
                <P>To provide CMS with information for monitoring and public reporting purposes.</P>
                <P>
                    To support the ESRD Quality Improvement Program. To determine if and by how much patient characteristics affect the patients' rating of the care they receive and adjust results based on those factors. 
                    <E T="03">Form Number:</E>
                     CMS-10105 (OMB control number: 0938-0926); 
                    <E T="03">Frequency:</E>
                     Yearly; 
                    <E T="03">Affected Public:</E>
                     Individuals and Households; 
                    <E T="03">Number of Respondents:</E>
                     211,770; 
                    <E T="03">Total Annual Responses:</E>
                     211,770; 
                    <E T="03">Total Annual Hours:</E>
                     42,267. (For policy questions regarding this collection 
                    <PRTPAGE P="45820"/>
                    contact Lauren Popham at 410-786-8568.)
                </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. 2026-14699 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4169-6901-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Children and Families</SUBAGY>
                <DEPDOC>[Office of Management and Budget #: 0970-0157]</DEPDOC>
                <SUBJECT>Submission for Office of Management and Budget Review; Temporary Assistance for Needy Families (TANF) Financial Report, ACF-196T</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Family Assistance, 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) is requesting a 3-year extension of the Guidance for the Tribal Temporary Assistance for Needy Families (TANF) Program, Form 123 (Office of Management and Budget (0970-0157, expiration date: August 31, 2026). While the statutory requirements remain unchanged, ACF is proposing revisions to the instructions for clarification and to ensure they are as clear and streamlined as possible. ACF estimates a 33 percent reduction in response time with the proposed revisions to the instructions.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments due</E>
                         August 20, 2026.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The public may view and comment on this information collection request at: 
                        <E T="03">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202607-0970-008.</E>
                         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>
                     42 U.S.C. 612 (section 412 of the Social Security Act) requires each Indian tribe that elects to administer and operate a TANF program to submit a TANF Tribal Plan. This request includes the renewal of the guidance for completing the initial Tribal TANF Plan. The TANF Tribal Plan is a mandatory statement submitted to the Secretary of HHS by the Indian tribe, which consists of an outline of how the Indian Tribes TANF program will be administered and operated. It is used by the Secretary to determine whether the plan is approvable and to determine that the Indian tribe is eligible to receive a TANF assistance grant. It is also made available to the public. The instructions have been edited for clarification and general improvements for respondents, including the following types of updates:
                </P>
                <P>• Eliminated redundant explanations and revised text to use shorter, clearer sentences.</P>
                <P>• Streamlined content and focused on the elements tribes need to develop and submit an approvable TANF plan.</P>
                <P>• Removed or condensed material that does not directly support plan preparation.</P>
                <P>• Organized plan requirements in a clearer, checklist-like format aligned with how federal staff review plans, making it easier for tribes to identify and address required elements without cross-referencing multiple sections.</P>
                <P>
                    <E T="03">Respondents:</E>
                     Indian tribes applying to operate a TANF program and to renew their Tribal Family Assistance Plan.
                </P>
                <HD SOURCE="HD1">Annual Burden Estimates</HD>
                <P>The proposed edits are expected to result in reduced reading time, improved usability, reduced cognitive load and enhanced accessibility. Overall, the edits are expected to reduce the estimated time per response. ACF has reduced the estimated response time from 68 hours to 45.6 hours. The number of agencies has been increased to reflect current grant recipients. Overall, annual burden estimates have decreased from 1,700 hours to 1,170 hours.</P>
                <GPOTABLE COLS="5" OPTS="L2,nj,tp0,i1" CDEF="s35,12C,12C,12C,12C">
                    <TTITLE> </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</LI>
                            <LI>hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Guidance For the Tribal TANF Program</ENT>
                        <ENT>77</ENT>
                        <ENT>
                            * 
                            <FR>1/3</FR>
                        </ENT>
                        <ENT>45.6</ENT>
                        <ENT>1,170</ENT>
                    </ROW>
                    <TNOTE>
                        * 
                        <E T="02">Note:</E>
                         Over the 3-year approval period, ACF estimates one-third of tribes will submit a plan each year. To estimate total annual burden, we use one-third as the annual number of responses per respondent.
                    </TNOTE>
                </GPOTABLE>
                <EXTRACT>
                    <FP>(Authority: 42 U.S.C. 612)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Mary B. Jones, </NAME>
                    <TITLE>ACF/OPRE Certifying Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14619 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4184-36-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-2026-N-4699]</DEPDOC>
                <SUBJECT>Expedited Investigational New Drug Pilot Program; Request for Information; Extension of the Comment Period</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; request for information; establishment of a public docket; extension of the comment period.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Food and Drug Administration (FDA or the Agency) is extending the comment period for the notice that appeared in the 
                        <E T="04">Federal Register</E>
                         of June 24, 2026, to open a public docket to solicit input and comments on a proposal to establish a pilot program, the Expedited Investigational New Drug (IND) pilot program, to shorten the time it takes from drug identification to first-in-human (FIH) study, while protecting clinical trial participants.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>FDA is extending the comment period on the notice published on June 24, 2026 (91 FR 37996). Either electronic or written comments, data, or information must be received by August 24, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You may submit comments, data, and information as follows. Please note that late, untimely filed comments 
                        <PRTPAGE P="45821"/>
                        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 24, 2026. 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>• Mail/Hand delivery/Courier (for written/paper submissions): 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 Docket No. FDA-2026-N-4699 for “Expedited Investigational New Drug Pilot Program; Request for Information.” 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>
                        Benjamin Cook, Office of the Commissioner, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 2, Rm. 2114, Silver Spring, MD 20993-0002, 240-338-4685, 
                        <E T="03">ExpeditedINDPilot@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of June 24, 2026 (91 FR 37996), FDA published a notice to open a public docket to solicit input and comments on a proposal to establish a pilot program, the Expedited IND pilot program, to shorten the time it takes from drug identification to FIH study, while protecting clinical trial participants. FDA is extending the comment period until August 24, 2026. The Agency is taking this action to allow interested persons additional time to submit comments.
                </P>
                <SIG>
                    <NAME>Grace R. Graham,</NAME>
                    <TITLE>Deputy Commissioner for Policy, Legislation, and International Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14672 Filed 7-20-26; 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>Health Resources and Services Administration</SUBAGY>
                <SUBJECT>Recharter for the Advisory Commission on Childhood Vaccines</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Health Resources and Services Administration (HRSA), Department of Health and Human Services.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Federal Advisory Committee Act (FACA), the Department of Health and Human Services is hereby giving notice that the Advisory Commission on Childhood Vaccines (ACCV) has been rechartered. The effective date of the renewed charter is July 21, 2026.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        CAPT George Reed Grimes, Director, Division of Injury Compensation Programs, Health Systems Bureau, HRSA, 5600 Fishers Lane, 14W-18, Rockville, Maryland 20857; 800-338-2382; or 
                        <E T="03">ACCV@hrsa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The ACCV provides advice and recommendations to the Secretary of Health and Human Services on policy, program development, and other matters of significance related to implementation of the National Vaccine Injury Compensation Program and concerning other matters as described under section 2119(f) of the Public Health Service Act (42 U.S.C. 300aa-19(f)).</P>
                <P>The renewed charter for ACCV was approved on July 16, 2026. The filing date is July 21, 2026. Recharter of the ACCV gives authorization for the commission to operate until July 21, 2028.</P>
                <P>
                    A copy of the ACCV charter is available on the ACCV website at 
                    <E T="03">https://www.hrsa.gov/advisory-committees/vaccines/index.html.</E>
                     A copy of the charter also can be obtained by accessing the FACA database that is maintained by the Committee Management Secretariat under the General Services Administration. The 
                    <PRTPAGE P="45822"/>
                    website address for the FACA database is 
                    <E T="03">http://www.facadatabase.gov/.</E>
                </P>
                <SIG>
                    <NAME>Maria G. Button,</NAME>
                    <TITLE>Director, Executive Secretariat. </TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14649 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4165-15-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 Neurological Disorders and Stroke; Notice of Meeting</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of a meeting of the Advisory Council on Parkinson's Research, Care, and Services (ACPRCS).</P>
                <P>This is the second meeting of the ACPRCS, which was established by the Dr. Emmanuel Bilirakis and Honorable Jennifer Wexton National Plan to End Parkinson's Act of 2024 (Pub. L. 118-66). The Advisory Council is charged with providing advice to the HHS Secretary on Parkinson's-related issues. The meeting will include presentations from non-profit organizations focused on Parkinson's and related disorders; plans for producing a federal inventory of Parkinson's programs; and the Council Subcommittees will report out on their progress.</P>
                <P>
                    The meeting is virtual and will be open to the public to view via HHS Live Streaming: 
                    <E T="03">www.hhs.gov/live.</E>
                     Individuals wishing to participate in need of special assistance or other reasonable accommodations should submit a request to the Contact Person listed on this notice at least seven (7) business days prior to the meeting.
                </P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         Advisory Council on Parkinson's Research, Care, and Services (ACPRCS).
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         August 24, 2026.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         10:00 a.m. to 4:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         Presentations from non-profit organizations focused on Parkinson's and related disorders; a discussion of the federal inventory of Parkinson's programs; and progress reports from the Council Subcommittees.
                    </P>
                    <P>
                        <E T="03">Address:</E>
                         National Institutes of Health, Neuroscience Center, 6001 Executive Boulevard, Rockville, MD 20852.
                    </P>
                    <P>
                        <E T="03">Meeting Format:</E>
                         Virtual Meeting.
                    </P>
                    <P>
                        <E T="03">Cost:</E>
                         The meeting is free and open to the public.
                    </P>
                    <P>
                        <E T="03">Deadlines:</E>
                         Public Comment Due 
                        <E T="03">Date:</E>
                         August 10th by 5:00 p.m. ET. For public comment instructions and guidelines, see below.
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Jordan Gladman, Ph.D., Deputy Executive Officer, National Institute of Neurological Disorders and Stroke, National Institutes of Health, Bethesda, MD 20892, 
                        <E T="03">nationalPDplan@nih.gov</E>
                        .
                    </P>
                </EXTRACT>
                <P>
                    <E T="03">Public Comments:</E>
                     The ACPRCS welcomes written and oral/virtual public comments and asks the public to review and adhere to its Public Comment Guidelines provided at 
                    <E T="03">https://www.ninds.nih.gov/current-research/trans-agency-activities/national-plan-end-parkinsons.</E>
                </P>
                <P>
                    Submissions are accepted in writing via email addressed to 
                    <E T="03">NationalPDplan@nih.gov.</E>
                     Please include the phrase “public comment” in the subject line as well as the body of the message. A limited number of slots are available for individuals to provide a 2-3-minute oral summary or excerpt of their written comment to the Council during the meeting via videoconference. For those interested in that opportunity, please indicate “Interested in providing oral/virtual comment” in your written submission, along with your name, email, and professional/organizational affiliation so that Council support staff can contact you if a slot is available.
                </P>
                <P>For any given meeting, comment slots will be assigned on a first-come, first-served basis, with priority given to individuals and organizations that have not previously provided comments. This will help ensure that as many individuals and organizations as possible have an opportunity to share comments. Commenters going over their allotted 3-minute slot may be asked to conclude immediately in order to allow other comments and the rest of the meeting to proceed on schedule.</P>
                <P>Public comment submissions received by 5:00 p.m. ET on August 10th will be provided to the Council prior to the meeting for their consideration. The Council is not able to respond individually to comments. All public comments become part of the public record. Attachments of copyrighted publications are not permitted, but web links or citations for any copyrighted works cited may be provided.</P>
                <P>
                    <E T="03">Technical issue</E>
                    s: If you experience any technical problems with the webcast, please email 
                    <E T="03">nationalPDplan@nih.gov.</E>
                </P>
                <P>
                    <E T="03">Disability Accommodation</E>
                    s: All ACPRCS Full Council Meetings provide Closed Captioning through 
                    <E T="03">www.hhs.gov/live.</E>
                     Individuals whose full participation in the meeting will require special accommodations (
                    <E T="03">e.g.,</E>
                     sign language or interpreting services) must submit a request to the Contact Person listed on the notice at least seven (7) business days prior to the meeting. Such requests should include a detailed description of the accommodation needed and a way for the ACPRCS to contact the requester if more information is needed to fill the request.
                </P>
                <P>Meeting schedule subject to change.</P>
                <P>
                    <E T="03">More Information:</E>
                     Information about the ACPRCS is available on: 
                    <E T="03">https://www.ninds.nih.gov/current-research/trans-agency-activities/national-plan-end-parkinsons.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Rosalind M Niamke, </NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14666 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4167-05-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 Neurological Disorders and Stroke; Notice of Meeting</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of a meeting of the National Advisory Neurological Disorders and Stroke Council.</P>
                <P>The meeting will be open to the public as indicated below. Individuals who plan to participate and need special assistance, such as sign language interpretation or other reasonable accommodations, should notify the Contact Person listed below in advance of the 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 Advisory Neurological Disorders and Stroke Council.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         August 10, 2026.
                    </P>
                    <P>
                        <E T="03">Open:</E>
                         August 10, 12:00 p.m. to 12:15 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To discuss upcoming Concept Clearance Initiatives and other business of the Council. The meeting will be available via NIH Videocast. 
                        <E T="03">https://videocast.nih.gov/.</E>
                    </P>
                    <P>
                        <E T="03">Closed:</E>
                         August 10, 2026, 12:15-1:30 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, 6001 Executive Boulevard, Room 1131, Rockville, Maryland 20852 (Virtual Meeting)
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Andrea Meredith, Ph.D., Director, Extramural Activities, National 
                        <PRTPAGE P="45823"/>
                        Institute of Neurological Disorders and Stroke, NIH, 6001 Executive Blvd., 5th Floor, MSC 9531,   Bethesda, MD 20892  (301) 496-9248, 
                        <E T="03">andrea.meredith@nih.gov</E>
                        .
                    </P>
                </EXTRACT>
                <P>Any interested person may file written comments with the committee by forwarding the statement to the Contact Person listed on this notice at least 10 days in advance of the meeting. The statement should include the name, address, telephone number and when applicable, the business or professional affiliation of the interested person.</P>
                <P>
                    Information is also available on the Institute's/Center's home page: 
                    <E T="03">www.ninds.nih.gov,</E>
                     where an agenda and any additional information for the meeting will be posted when available.
                </P>
                <EXTRACT>
                    <FP>(Catalogue of Federal Domestic Assistance Program Nos. 93.853, Clinical Research Related to Neurological Disorders; 93.854, Biological Basis Research in the Neurosciences, National Institutes of Health, HHS.) </FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Rosalind M. Niamke, </NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14667 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4167-05-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <SUBJECT>Determination Pursuant to Section 102 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, as Amended</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of determination.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Secretary of Homeland Security has determined, pursuant to law, that it is necessary to waive certain laws, regulations, and other legal requirements in order to ensure the expeditious construction of barriers and roads in the vicinity of the international land border in the state of Arizona.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This determination takes effect on July 21, 2026.</P>
                </DATES>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Important mission requirements of the Department of Homeland Security (“DHS”) include border security and the detection and prevention of illegal entry into the United States. Border security is critical to the nation's national security. Recognizing the critical importance of border security, Congress has mandated DHS to achieve and maintain operational control of the international land border. Secure Fence Act of 2006, Public Law 109-367, section 2, 120 Stat. 2638 (Oct. 26, 2006) (8 U.S.C. 1701 note). Congress defined “operational control” as the prevention of all unlawful entries into the United States, including entries by terrorists, other unlawful aliens, instruments of terrorism, narcotics, and other contraband. 
                    <E T="03">Id.</E>
                     Consistent with that mandate, the President's Executive Order on Securing Our Borders directs that I take all appropriate action to deploy and construct physical barriers to ensure complete operational control of the southern border of the United States. Executive Order 14165, section 3 (Jan. 20, 2025).
                </P>
                <P>Congress has provided to the Secretary of Homeland Security a number of authorities necessary to carry out DHS's border security mission. One of those authorities is found at section 102 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, as amended (“IIRIRA”). Public Law 104-208, Div. C, 110 Stat. 3009-546, 3009-554 (Sept. 30, 1996) (8 U.S.C. 1103 note), as amended by the REAL ID Act of 2005, Public Law 109-13, Div. B, 119 Stat. 231, 302, 306 (May 11, 2005) (8 U.S.C. 1103 note), as amended by the Secure Fence Act of 2006, Public Law 109-367, section 3, 120 Stat. 2638 (Oct. 26, 2006) (8 U.S.C. 1103 note), as amended by the Department of Homeland Security Appropriations Act, 2008, Public Law 110-161, Div. E, Title V, section 564, 121 Stat. 2090 (Dec. 26, 2007). In section 102(a) of IIRIRA, Congress provided that the Secretary of Homeland Security shall take such actions as may be necessary to install additional physical barriers and roads (including the removal of obstacles to detection of illegal entrants) in the vicinity of the United States border to deter illegal crossings in areas of high illegal entry into the United States. In section 102(b) of IIRIRA, Congress mandated that in carrying out the authority of section 102(a), I provide for the installation of additional fencing, barriers, roads, lighting, cameras, and sensors to achieve and maintain operational control of the border. Finally, in section 102(c) of IIRIRA, Congress granted to the Secretary of Homeland Security the authority to waive all legal requirements that I, in my sole discretion, determine necessary to ensure the expeditious construction of barriers and roads authorized by section 102 of IIRIRA.</P>
                <HD SOURCE="HD1">Determination and Waiver</HD>
                <HD SOURCE="HD2">Section 1</HD>
                <P>The United States Border Patrol Tucson Sector is an area of high illegal entry. Between fiscal year 2021 through June 1, 2026, the United States Border Patrol (“Border Patrol”) apprehended over 1,333,000 illegal aliens attempting to enter the United States between border crossings in the Tucson Sector. In that same time period Border Patrol seized over 17,200 pounds of marijuana, over 750 pounds of cocaine, over 150 pounds of heroin, over 11,750 pounds of methamphetamine, and over 3,475 pounds of fentanyl.</P>
                <P>Since the President took office, DHS has delivered the most secure border in history. More can and must be done, however. As the statistics cited above demonstrate, the Tucson Sector is an area of high illegal entry where illegal aliens regularly attempt to enter the United States and smuggle illicit drugs, and given my mandate to achieve and maintain operational control of the border, I must use my authority under section 102 of IIRIRA to install additional barriers and roads in the Tucson Sector. Therefore, DHS will take immediate action to construct additional barriers and roads in a segment of the border in the Tucson Sector. The segment where such construction will occur is referred to herein as the “project area,” which is more specifically described in Section 2 below.</P>
                <HD SOURCE="HD2">Section 2</HD>
                <P>I determine that the following area in the vicinity of the United States border, located in the State of Arizona within the United States Border Patrol Tucson Sector, is an area of high illegal entry (the “project area”): Starting at Border Monument 163 and extending east to Border Monument 140.</P>
                <P>There is presently an acute and immediate need to construct additional physical barriers and roads in the vicinity of the border of the United States in order to prevent unlawful entries into the United States in the project area pursuant to section 102(a) and 102(b) of IIRIRA. In order to ensure the expeditious construction of additional physical barriers and roads in the project area, I have determined that it is necessary that I exercise the authority that is vested in me by section 102(c) of IIRIRA.</P>
                <P>
                    Accordingly, pursuant to section 102(c) of IIRIRA, I hereby waive in their entirety, with respect to the construction of physical barriers and roads (including, but not limited to, accessing the project areas, creating and using staging areas, the conduct of earthwork, excavation, fill, and site preparation, and installation and upkeep of physical barriers, roads, supporting elements, drainage, erosion controls, safety features, lighting, 
                    <PRTPAGE P="45824"/>
                    cameras, and sensors) in the project area, all of the following statutes, including all federal, state, or other laws, regulations, and legal requirements of, deriving from, or related to the subject of, the following statutes, as amended: The National Environmental Policy Act (Pub. L. 91-190, 83 Stat. 852 (Jan. 1, 1970) (42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    )); the Endangered Species Act (Pub. L. 93-205, 87 Stat. 884 (Dec. 28, 1973) (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    )); the Federal Water Pollution Control Act (commonly referred to as the Clean Water Act (33 U.S.C. 1251 
                    <E T="03">et seq.</E>
                    )); the National Historic Preservation Act (Pub. L. 89-665, 80 Stat. 915 (Oct. 15, 1966), as amended, repealed, or replaced by Pub. L. 113-287 (Dec. 19, 2014) (formerly codified at 16 U.S.C. 470 
                    <E T="03">et seq.,</E>
                     now codified at 54 U.S.C. 100101 note and 54 U.S.C. 300101 
                    <E T="03">et seq.</E>
                    )); the Migratory Bird Treaty Act (16 U.S.C. 703 
                    <E T="03">et seq.</E>
                    ); the Migratory Bird Conservation Act (16 U.S.C. 715 
                    <E T="03">et seq.</E>
                    ); the Clean Air Act (42 U.S.C. 7401 
                    <E T="03">et seq.</E>
                    ); the Archeological Resources Protection Act (Pub. L. 96-95 (16 U.S.C. 470aa 
                    <E T="03">et seq.</E>
                    )); the Paleontological Resources Preservation Act (16 U.S.C. 470aaa 
                    <E T="03">et seq.</E>
                    ); the Federal Cave Resources Protection Act of 1988 (16 U.S.C. 4301 
                    <E T="03">et seq.</E>
                    ); the National Trails System Act (16 U.S.C. 1241 
                    <E T="03">et seq.</E>
                    ), the Safe Drinking Water Act (42 U.S.C. 300f 
                    <E T="03">et seq.</E>
                    ); the Noise Control Act (42 U.S.C. 4901 
                    <E T="03">et seq.</E>
                    ); the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act (42 U.S.C. 6901 
                    <E T="03">et seq.</E>
                    ); the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 9601 
                    <E T="03">et seq.</E>
                    ); the Archaeological and Historic Preservation Act (Pub. L. 86-523, as amended, repealed, or replaced by Pub. L. 113-287 (Dec. 19, 2014) (formerly codified at 16 U.S.C. 469 
                    <E T="03">et seq.,</E>
                     now codified at 54 U.S.C. 312502 
                    <E T="03">et seq.</E>
                    )); the Antiquities Act (formerly codified at 16 U.S.C. 431 
                    <E T="03">et seq.</E>
                     and 16 U.S.C. 431a 
                    <E T="03">et seq.,</E>
                     now codified 54 U.S.C. 320301 
                    <E T="03">et seq.</E>
                    ); the Historic Sites, Buildings, and Antiquities Act (formerly codified at 16 U.S.C. 461 
                    <E T="03">et seq.,</E>
                     now codified at 54 U.S.C. 320301-320303 &amp; 320101-320106); the Eagle Protection Act (16 U.S.C. 668 
                    <E T="03">et seq.</E>
                    ); the Native American Graves Protection and Repatriation Act (25 U.S.C. 3001 
                    <E T="03">et seq.</E>
                    ); the Administrative Procedure Act (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ); Section 438 of the Energy Independence and Security Act (42 U.S.C. 17094); the National Fish and Wildlife Act of 1956 (Pub. L. 84-1024 (16 U.S.C. 742a, 
                    <E T="03">et seq.</E>
                    )); the Fish and Wildlife Coordination Act (Pub. L. 73-121 (16 U.S.C. 661 
                    <E T="03">et seq.</E>
                    )); the Wild and Scenic Rivers Act (Pub. L. 90-542 (16 U.S.C. 1281 
                    <E T="03">et seq.</E>
                    )); the Farmland Protection Policy Act (7 U.S.C. 4201 
                    <E T="03">et seq.</E>
                    ); the Federal Land Policy and Management Act (Pub L. 94-579 (43 U.S.C. 1701 
                    <E T="03">et seq.</E>
                    )); the Wilderness Act (Pub. L. 88-577 (16 U.S.C. 1131 
                    <E T="03">et seq.</E>
                    )); the National Wildlife Refuge System Administration Act (Pub. L. 89-669 (16 U.S.C. 668dd-668ee)); the National Wildlife Refuge System Improvement Act of 1997 (Pub. L. 105-57); the Wild Horse and Burro Act (16 U.S.C. 1331 
                    <E T="03">et seq.</E>
                    ); the National Park Service Organic Act and the National Park Service General Authorities Act (Pub. L. 64-235, 39 Stat. 535 (Aug. 25, 1916) and Pub. L. 91-383, 84 Stat. 825 (Aug. 18, 1970) as amended, repealed, or replaced by Pub. L. 113-287, 128 Stat. 3094 (Dec. 19, 2014) (formerly codified at 16 U.S.C. 1, 2-4 and 16 U.S.C. 1a-1 
                    <E T="03">et seq.,</E>
                     now codified at 54 U.S.C. 100101-100102, 54 U.S.C. 100301-100303, 54 U.S.C. 100501-100507, 54 U.S.C. 100701-100707, 54 U.S.C. 100721-100725, 54 U.S.C. 100751-100755, 54 U.S.C. 100901-100906, 54 U.S.C. 102101-102102)); Sections 401(7), 403, and 404 of the National Parks and Recreation Act of 1978 (Pub. L. 95-625, 92 Stat. 3467 (Nov. 10, 1978)); 50 Stat. 1827 (April 13, 1937); Sections 301(a)-(f) of the Arizona Desert Wilderness Act (Pub. L. 101-628); The National Forest Management Act of 1976 (16 U.S.C. 1600 
                    <E T="03">et seq.</E>
                    ); and The Multiple Use and Sustained Yield Act of 1960 (16 U.S.C. 528-531).
                </P>
                <P>This waiver does not revoke or supersede any other waiver determination made pursuant to section 102(c) of IIRIRA. Such waivers shall remain in full force and effect in accordance with their terms. I reserve the authority to execute further waivers from time to time as I may determine to be necessary under section 102 of IIRIRA.</P>
                <SIG>
                    <NAME>Markwayne Mullin,</NAME>
                    <TITLE>Secretary of Homeland Security.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14604 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-14-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <DEPDOC>[Docket No. FWS-R8-ES-2026-2708; FXES11140800000-267-FF08ECAR00]</DEPDOC>
                <SUBJECT>Receipt of Incidental Take Permit Application and Proposed Habitat Conservation Plan for Los Angeles County Sanitation Districts Joint Outfall J Unit 1E Trunk Sewer Rehabilitation Project, City of Rancho Palos Verdes, CA; Categorical Exclusion</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>We, the U.S. Fish and Wildlife Service (Service), announce receipt of an application from Los Angeles County Sanitation Districts, the applicant, for an incidental take permit (ITP) under the Endangered Species Act of 1973, as amended. The applicant requests the ITP to take the federally threatened coastal California gnatcatcher incidental to the Joint Outfall J Unit 1E Trunk Sewer Rehabilitation project, in the City of Rancho Palos Verdes, Los Angeles County, California. We request public comment on the application, which includes the applicant's proposed habitat conservation plan, and the Service's preliminary determination that the proposed permitting action may be eligible for a categorical exclusion pursuant to the National Environmental Policy Act (NEPA), Department of the Interior's (DOI) NEPA regulations, and the DOI Departmental Manual. To make this preliminary determination, we prepared a joint draft environmental action statement and low-effect screening form, which is also available for public review. We invite comment from the public and local, State, Tribal, and Federal agencies.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>We must receive your written comments on or before August 20, 2026.</P>
                    <P>
                        To ensure your comment is received and considered, you must submit it using one of the methods identified in the 
                        <E T="02">ADDRESSES</E>
                         section of this document. Comments submitted through any method not authorized in this document, or sent to an address not listed here, will not be considered.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">Obtaining Documents:</E>
                         You may obtain copies of the documents this notice announces, along with any comments and other materials that we receive, online in Docket No. FWS-R8-ES-2026-2708 at 
                        <E T="03">https://www.regulations.gov.</E>
                        <PRTPAGE P="45825"/>
                    </P>
                    <P>
                        <E T="03">Submitting Comments:</E>
                         All submissions must include the docket number [FWS-R8-ES-2026-2708] for this document. You must submit comments using one of the following methods:
                    </P>
                    <P>
                        • 
                        <E T="03">Electronic Submission:</E>
                         Federal eRulemaking Portal at 
                        <E T="03">https://www.regulations.gov.</E>
                         In the Search box, enter FWS-R8-ES-2026-2708, which is the docket number for this action. Then click the Search button. On the resulting page, you may submit a comment by clicking on “Comment.” Please ensure that you have found the correct document before submitting your comments.
                    </P>
                    <P>
                        • 
                        <E T="03">U.S. mail:</E>
                         Public Comments Processing, Attn: Docket No. FWS-R8-ES-2026-2708, Policy and Regulations Branch, U.S. Fish and Wildlife Service, MS: PRB (JAO/3W), 5275 Leesburg Pike, Falls Church, VA 22041-3803.
                    </P>
                    <P>Comments submitted through any method not authorized in this document, or sent to an address not listed here, will not be considered. We will not accept comments via email, fax, or hand delivery. We are not required to consider comments that are submitted after the comment period ends or that are submitted via a method outside of these instructions. Comments containing profanity, vulgarity, threats, or other inappropriate content will not be considered.</P>
                    <P>
                        We will post all comments at 
                        <E T="03">https://www.regulations.gov.</E>
                         You may request that we withhold personal identifying information from public review; however, we cannot guarantee that we will be able to do so. See Public Availability of Comments for more information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. Jonathan Snyder, Acting Field Supervisor, Carlsbad Fish and Wildlife Office, 
                        <E T="03">jonathan_d_snyder@fws.gov</E>
                         (email) or 760-309-7993. 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 received an application from Los Angeles County Sanitation Districts, the applicant, for a 7-year incidental take permit (ITP) for one covered species pursuant to section 10(a)(1)(B) of the Endangered Species Act of 1973, as amended (ESA; 16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ). The application addresses the potential “take” of the threatened coastal California gnatcatcher (gnatcatcher; 
                    <E T="03">Polioptila californica californica</E>
                    ) associated with the construction of the Joint Outfall J Unit 1E Trunk Sewer Rehabilitation project, in the City of Rancho Palos Verdes, Los Angeles County, California. We request public comment on the application, which includes the applicant's habitat conservation plan (HCP), and on the Service's preliminary determination that this proposed ITP qualifies as “low effect,” and may qualify for a categorical exclusion pursuant to the National Environmental Policy Act (42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ), the Department of the Interior's (DOI) NEPA regulations (43 CFR 46), and the DOI Departmental Manual (516 DM 1 Appendix 2 section 8.5(C)(2)). To make this preliminary determination, we prepared a joint draft environmental action statement and low-effect screening form, which is also available for public review.
                </P>
                <HD SOURCE="HD1">Background</HD>
                <P>The Service listed the coastal California gnatcatcher as threatened on March 30, 1993 (58 FR 16742) and published a revised final rule designating critical habitat on December 19, 2007 (72 FR 72010). Section 9 of the ESA prohibits take of fish and wildlife species listed as endangered (16 U.S.C. 1538). Under the ESA, “take” is defined to include the following activities: “to harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or to attempt to engage in any such conduct” (16 U.S.C. 1532). Section 4(d) of the ESA allows the Secretary to extend protections for endangered species to those listed as threatened. Under section 10(a)(1)(B) of the ESA (16 U.S.C. 1539(a)(1)(B)), we may issue permits to authorize take of listed fish and wildlife species that is incidental to, and not the purpose of, carrying out an otherwise lawful activity. Regulations governing incidental take permits for threatened species are in the Code of Federal Regulations (CFR) at 50 CFR 17.32. Issuance of an ITP also must not jeopardize the existence of federally listed fish, wildlife, or plant species, pursuant to section 7 of the ESA and 50 CFR 402.02. The permittee would receive assurances under our “No Surprises” regulations (50 CFR 17.32(b)(5)).</P>
                <HD SOURCE="HD1">Applicant's Proposed Project</HD>
                <P>The proposed rehabilitation project site is between Maritime Road and Catalina Vista south of Palos Verdes Drive South in the City of Rancho Palos Verdes, Los Angeles County, California. The project alignment runs through a mix of actively landscaped golf course and native habitat dominated by coastal sage scrub vegetation set aside pursuant to the Ocean Trails Habitat Conservation Plan issued in 1996. The native habitat within the golf course, the preserve area adjacent to the golf course, and Shoreline Park have been conserved, in part, to protect the coastal California gnatcatcher. The proposed project will rehabilitate 9,362 feet of an existing underground sewer line to prevent leakage and will require access to the pipeline at several existing manholes. The applicant requests a 7-year ITP under section 10(a)(1)(B) of the ESA. If we approve the permit, the applicant anticipates taking gnatcatcher resulting from temporary impacts to 1.71 acres, including about 0.84 acre of native coastal sage scrub vegetation that this species uses for breeding, feeding, and sheltering. The take would be incidental to the applicant's activities associated with access for the rehabilitation project and associated habitat restoration activities.</P>
                <P>The applicant's proposed HCP contains measures to minimize the effects of construction activities on the gnatcatcher. During construction, a biological monitor will be present to ensure avoidance and minimization measures are understood by the contractors and implemented as anticipated. To the extent practical, vegetation impacts will occur outside the breeding season to avoid active nests. Impacts to coastal sage scrub will be restored onsite where the impacts occurred, and the applicant will restore an additional 6 acres offsite within Shoreline Park and/or the San Ramon Reserve, also known as Switchbacks, in the City of Rancho Palos Verdes. The areas of native habitat to be temporarily impacted and potential offsite restoration areas are already subject to in-perpetuity habitat management by the Palos Verdes Peninsula Land Conservancy.</P>
                <HD SOURCE="HD1">Proposed Action and Alternatives</HD>
                <P>
                    The proposed action consists of the issuance of an incidental take permit and implementation of the proposed HCP, which includes measures to avoid, minimize, and mitigate impacts to the gnatcatcher. To comply with the requirements for an HCP under ESA section 10(a), alternatives to the project and the incidental take of gnatcatcher were evaluated. Under the No Action Alternative, the sewer line rehabilitation would not be conducted, and the pipeline would be susceptible to leakage with potential for extensive damage to habitat and inhabited property. Under 
                    <PRTPAGE P="45826"/>
                    the Breeding Season Avoidance Alternative, the project would reduce potential for impacts to gnatcatchers by initiating work after the gnatcatcher breeding season, and the pipeline upgrades may not be completed until the following season rendering the pipelines susceptible to leakage with potential for extensive damage to habitat and inhabited property along with additional project costs.
                </P>
                <HD SOURCE="HD1">Our Preliminary Determination</HD>
                <P>The Service has made a preliminary determination that our proposed issuance of an ESA section 10(a)(1)(B) ITP authorizing take of the federally threatened coastal California gnatcatcher resulting from the applicant's proposed project would individually and cumulatively have a minor effect on the coastal California gnatcatcher and the human environment and may qualify for application of a categorical exclusion pursuant to DOI's NEPA regulations and the DOI Departmental Manual.</P>
                <HD SOURCE="HD1">Next Steps</HD>
                <P>The Service will evaluate the application and comments received to determine whether to issue the requested ITP. We will also conduct an intra-Service consultation pursuant to section 7 of the ESA to evaluate the effects of the proposed take. After considering the preceding and other matters, we will determine whether the permit issuance criteria of section 10(a)(1)(B) of the ESA have been met. If met, the Service will issue the permit to the applicant for incidental take of the gnatcatcher.</P>
                <HD SOURCE="HD1">Public Availability of Comments</HD>
                <P>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>
                <HD SOURCE="HD1">Authority</HD>
                <P>
                    We provide this notice under section 10 of the Endangered Species Act (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ) and its implementing regulations (50 CFR 17.22 and 17.32) and the National Environmental Policy Act (42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ) and its implementing regulations (43 CFR 46).
                </P>
                <SIG>
                    <NAME>Jonathan Snyder,</NAME>
                    <TITLE>Acting Field Supervisor, Carlsbad Fish and Wildlife Office, Carlsbad, California.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14680 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Reclamation</SUBAGY>
                <DEPDOC>[RR040U2000, XXXR4081G3, RX.05940913.FY19400]</DEPDOC>
                <SUBJECT>Public Meeting of the Glen Canyon Dam Adaptive Management Work Group</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Reclamation, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Federal Advisory Committee Act of 1972, the Bureau of Reclamation (Reclamation) is publishing this notice to announce that a Federal Advisory Committee meeting of the Glen Canyon Dam Adaptive Management Work Group (AMWG) will take place. The meeting is open to the public.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting will be held in-person and virtually on Wednesday, August 12, 2026, beginning at 9:30 a.m. to approximately 5:00 p.m. (MDT); and Thursday, August 13, 2026, from 8:30 a.m. to approximately 3:30 p.m. (MDT).</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The in-person meeting will be held in Ballroom B at Little America, 2515 East Butler Ave., Flagstaff, Arizona 86004.</P>
                    <P>
                        Please follow the link provided to register for the virtual meeting held on Wednesday, August 12, 2026. 
                        <E T="03">https://events.gcc.teams.microsoft.com/event/787a9f1f-f38b-4d47-964a-a0cc0325a25a@0693b5ba-4b18-4d7b-9341-f32f400a5494.</E>
                    </P>
                    <P>
                        Please follow the link provided to register for the virtual meeting held on Thursday, August 13, 2026. 
                        <E T="03">https://events.gcc.teams.microsoft.com/event/15bfc020-4bda-455f-80c7-38cc6524577d@0693b5ba-4b18-4d7b-9341-f32f400a5494.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. William Stewart, Bureau of Reclamation, telephone (385) 622-2179, email at 
                        <E T="03">wstewart@usbr.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 Glen Canyon Dam Adaptive Management Program (GCDAMP) was implemented as a result of the Record of Decision on the Operation of Glen Canyon Dam Final Environmental Impact Statement to comply with consultation requirements of the Grand Canyon Protection Act (Pub. L. 102-575) of 1992. The AMWG makes recommendations to the Secretary of the Interior concerning Glen Canyon Dam operations and other management actions to protect resources downstream of Glen Canyon Dam, consistent with the Grand Canyon Protection Act. The AMWG meets two to three times a year.</P>
                <P>
                    <E T="03">Agenda:</E>
                     The AMWG will meet to receive updates on: (1) current basin hydrology and water year 2026 operations; (2) experiments considered for implementation in 2026; (3) the status of threatened and endangered species; (4) long-term funding considerations; and (5) recommendations to the Secretary for the 2027 budget. The AMWG will also discuss other administrative and resource issues pertaining to the GCDAMP. To view a copy of the agenda and documents related to the above meeting, please visit Reclamation's website at 
                    <E T="03">https://www.usbr.gov/uc/progact/amp/amwg.html.</E>
                </P>
                <P>
                    <E T="03">Meeting Accessibility/Special Accommodations:</E>
                     The meeting is open to the public. Please make requests in advance for sign language interpreter services, assistive listening devices, or other reasonable accommodations. We ask that you contact Mr. William Stewart (see 
                    <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>
                     Time will be allowed on both days for any individual or organization wishing to make extemporaneous and/or formal oral comments. Depending on the number of persons wishing to speak, and the time available, the time for individual comments may be limited. Interested parties should contact Mr. William Stewart (see 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    ) for placement on the public speaker list for this meeting. Members of the public may also choose to submit written comments by emailing them to 
                    <E T="03">wstewart@usbr.gov.</E>
                     Due to time constraints during the meeting, the AMWG is not able to read written 
                    <PRTPAGE P="45827"/>
                    public comments. All written comments will be made part of the public record and will be provided to the AMWG members.
                </P>
                <P>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">Authority:</E>
                     5 U.S.C. Ch. 10.
                </P>
                <SIG>
                    <NAME>William Stewart,</NAME>
                    <TITLE>Adaptive Management Group Chief, Upper Colorado Basin—Interior Region 7.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14650 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4332-90-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">INTERNATIONAL TRADE COMMISSION</AGENCY>
                <SUBJECT>Notice of Receipt of Complaint; Solicitation of Comments Relating to the Public Interest</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. 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 has received a complaint entitled 
                        <E T="03">Certain Transformers and Components Thereof, DN 3925;</E>
                         the Commission is soliciting comments on any public interest issues raised by the complaint or complainant's filing pursuant to the Commission's Rules of Practice and Procedure.
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lisa R. Barton, Secretary to the Commission, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, telephone (202) 205-2000. The public version of the complaint can be accessed on the Commission's Electronic Document Information System (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                         For help accessing EDIS, please email 
                        <E T="03">EDIS3Help@usitc.gov.</E>
                    </P>
                    <P>
                        General information concerning the Commission may also be obtained by accessing its internet server at United States International Trade Commission (USITC) at 
                        <E T="03">https://www.usitc.gov</E>
                        . The public record for this investigation may be viewed on the Commission's Electronic Document Information System (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                         Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal on (202) 205-1810.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Commission has received a complaint and a submission pursuant to § 210.8(b) of the Commission's Rules of Practice and Procedure filed on behalf of Ayr Energy, Inc. on July 16, 2026. The complaint alleges violations of section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain transformers and components thereof. The complaint names as respondents: Zetwerk Manufacturing Businesses Private Limited of India; Zetwerk Manufacturing USA Inc. of San Francisco, CA; KRYFS Power Components Ltd. of India; and Unimacts Global, LLC of Lexington, MA. The complainant requests that the Commission issue a limited exclusion order, cease and desist orders, and impose a bond upon respondents' alleged infringing articles during the 60-day Presidential review period pursuant to 19 U.S.C. 1337(j).</P>
                <P>Proposed respondents, other interested parties, members of the public, and interested government agencies are invited to file comments on any public interest issues raised by the complaint or § 210.8(b) filing. Comments should address whether issuance of the relief specifically requested by the complainant in this investigation would affect the public health and welfare in the United States, competitive conditions in the United States economy, the production of like or directly competitive articles in the United States, or United States consumers.</P>
                <P>In particular, the Commission is interested in comments that:</P>
                <P>(i) explain how the articles potentially subject to the requested remedial orders are used in the United States;</P>
                <P>(ii) identify any public health, safety, or welfare concerns in the United States relating to the requested remedial orders;</P>
                <P>(iii) identify like or directly competitive articles that complainant, its licensees, or third parties make in the United States which could replace the subject articles if they were to be excluded;</P>
                <P>(iv) indicate whether complainant, complainant's licensees, and/or third party suppliers have the capacity to replace the volume of articles potentially subject to the requested exclusion order and/or a cease and desist order within a commercially reasonable time; and</P>
                <P>(v) explain how the requested remedial orders would impact United States consumers.</P>
                <P>
                    Written submissions on the public interest must be filed no later than by close of business, eight calendar days after the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . There will be further opportunities for comment on the public interest after the issuance of any final initial determination in this investigation. Any written submissions on other issues must also be filed by no later than the close of business, eight calendar days after publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . Complainant may file replies to any written submissions no later than three calendar days after the date on which any initial submissions were due, notwithstanding § 201.14(a) of the Commission's Rules of Practice and Procedure. No other submissions will be accepted, unless requested by the Commission. Any submissions and replies filed in response to this Notice are limited to five (5) pages in length, inclusive of attachments.
                </P>
                <P>
                    Persons filing written submissions must file the original document electronically on or before the deadlines stated above. Submissions should refer to the docket number (“Docket No. 3925”) in a prominent place on the cover page and/or the first page. (
                    <E T="03">See</E>
                     Handbook for Electronic Filing Procedures, Electronic Filing Procedures 
                    <SU>1</SU>
                    <FTREF/>
                    ). Please note the Secretary's Office will accept only electronic filings unless an exemption is granted. Filings must be made through the Commission's Electronic Document Information System (EDIS, 
                    <E T="03">https://edis.usitc.gov.</E>
                    ) Persons with questions regarding filing should contact the Secretary at 
                    <E T="03">EDIS3Help@usitc.gov.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Handbook for Electronic Filing Procedures: 
                        <E T="03">https://www.usitc.gov/secretary/documents/handbook_on_filing_procedures.pdf</E>
                        .
                    </P>
                </FTNT>
                <P>
                    Any person desiring to submit a document to the Commission in confidence must request confidential treatment. All such requests should be directed to the Secretary to the Commission and must include a full statement of the reasons why the Commission should grant such treatment. 
                    <E T="03">See</E>
                     19 CFR 201.6. Documents for which confidential treatment by the Commission is properly sought will be treated accordingly. 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, 
                    <PRTPAGE P="45828"/>
                    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,
                    <SU>2</SU>
                    <FTREF/>
                     solely for cybersecurity purposes. All nonconfidential written submissions will be available for public inspection at the Office of the Secretary and on EDIS.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         All contract personnel will sign appropriate nondisclosure agreements.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Electronic Document Information System (EDIS): 
                        <E T="03">https://edis.usitc.gov.</E>
                    </P>
                </FTNT>
                <P>This action is taken under the authority of section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and of §§ 201.10 and 210.8(c) of the Commission's Rules of Practice and Procedure (19 CFR 201.10, 210.8(c)).</P>
                <SIG>
                    <P>By order of the Commission.</P>
                    <DATED>Issued: July 17, 2026.</DATED>
                    <NAME>Lisa Barton,</NAME>
                    <TITLE>Secretary to the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14681 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7020-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">INTERNATIONAL TRADE COMMISSION</AGENCY>
                <DEPDOC>[Investigation No. 337-TA-1431]</DEPDOC>
                <SUBJECT>Certain Nanolaminate Alloy Coated Metal Parts and Products Containing Same; Notice of Commission Decision To Review, and, on Review, To Affirm a Final Initial Determination Finding No Violation of Section 337; Termination of the Investigation</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. 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 has determined to review and, on review, to affirm with modified analysis a final initial determination (“FID”) of the presiding administrative law judge (“ALJ”) finding no violation of section 337 of the Tariff Act of 1930, as amended (“section 337”). The investigation is terminated.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Houda Morad, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, telephone (202) 708-4716. Copies of non-confidential documents filed in connection with this investigation may be viewed on the Commission's electronic docket (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 on (202) 205-1810.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    On January 22, 2025, the Commission instituted this investigation based on a complaint filed by Modumetal, Inc. of Snohomish, Washington (“Complainant” or “Modumetal”). 90 FR 7704-05 (Jan. 22, 2025). The complaint, as supplemented, alleges violations of section 337 (19 U.S.C. 1337) based upon the importation into the United States, the sale for importation, and the sale within the United States after importation of certain nanolaminate alloy coated metal parts and products containing same by reason of the infringement of certain claims of U.S. Patent Nos. 10,253,419 (“the '419 patent”) and 11,242,613 (“the '613 patent”). 
                    <E T="03">Id.</E>
                     at 7704. The complaint further alleges that a domestic industry exists. 
                    <E T="03">Id.</E>
                     The Commission's notice of investigation named the following respondents: Parker Hannifin Corporation of Cleveland, Ohio, and Lu Chu Shin Yee Works Co., Ltd. of Kaohsiung City, Taiwan (collectively, “Respondents”). 
                    <E T="03">Id.</E>
                     The Office of Unfair Import Investigations is not a party to this investigation. 
                    <E T="03">Id.</E>
                </P>
                <P>
                    The Commission previously amended the complaint and notice of investigation to add seven new respondents: Jiangsu DVP Hi Press Tech Co. of Jiangsu, China (“Jiangsu DVP Hi Press”); Kunshan Huizong Machine Co. of Jiangsu, China (“Kunshan”); Maxort Philippines Inc. of Laguna, Philippines; Paloma Turning Co. Pvt Ltd. of Karnataka, India; Shaoxing Xuantong Fluid Connectors Manufacturing Co., Ltd. of Zhejiang, China; Overseas International Group of Shanghai, China (“Overseas”); and Zhejiang Unifull Industrial Fibre Co., Ltd. of Zhejiang, China (“Zhejiang Unifull”). Order No. 13 (May 8, 2025), 
                    <E T="03">unreviewed by</E>
                     90 FR 23563-64 (June 3, 2025).
                </P>
                <P>
                    The Commission previously further amended the notice of investigation to: (1) replace Zhejiang Unifull with Zhejiang Fitting Machinery Co., Ltd., also of Zhejiang China; (2) correct the name of Jiangsu DVP Hi Press to Jiangsu DVP Hi Pressure Technology Co., Ltd., also of Jiangsu, China; (3) correct the name of Overseas to Shanghai Overseas Enterprises Co., also of Shanghai, China; and (4) remove reference to Kunshan to conform to evidence. Order No. 18 (June 10, 2025), 
                    <E T="03">unreviewed by</E>
                     90 FR 31241-42 (July 14, 2025).
                </P>
                <P>
                    On April 30, 2026, the ALJ issued the FID finding no violation of section 337 (as corrected on May 6, 2026). Specifically, the FID finds no infringement of the asserted claims, 
                    <E T="03">i.e.,</E>
                     claims 1-3, 5, and 7 of the '419 patent and claims 1-3 and 5 of the '613 patent. The FID also finds that the asserted claims are not invalid for anticipation, obviousness, or lack of enablement. The FID further finds that Modumetal has not satisfied the technical prong of the domestic industry requirement with respect to both the '419 and '613 patents, but that Modumetal has contingently satisfied the economic prong for both patents.
                </P>
                <P>
                    The FID further includes the ALJ's recommended determination (“RD”), which recommends, should the Commission find a violation of section 337, that the Commission issue a limited exclusion order prohibiting the unlicensed entry of infringing products imported by or on behalf of the respondents. The RD, however, recommends no cease and desist order against any of the respondents and no bond (
                    <E T="03">i.e.,</E>
                     a zero percent (0%) bond) during the period of Presidential review.
                </P>
                <P>On May 12, 2026, Complainant petitioned for Commission review of the FID's findings relating to claim construction, non-infringement, and failure to satisfy the technical prong of the domestic industry requirement. On the same day, Respondents filed a contingent petition for Commission review of the FID's finding that the asserted claims are not invalid for anticipation, obviousness, or lack of enablement, as well as the FID's finding that Modumetal has contingently satisfied the economic prong of the domestic industry requirement. On May 20, 2026, the parties filed responses to each other's petitions.</P>
                <P>
                    The Commission did not receive any statements on the public interest from the parties pursuant to Commission Rule 210.50(a)(4), 19 CFR 210.50(a)(4). The Commission also did not receive any submission in response to its post-RD 
                    <E T="04">Federal Register</E>
                     notice. 91 FR 24607-08 (May 6, 2026).
                </P>
                <P>
                    Having examined the record of this investigation, including the FID and the parties' submissions, the Commission has determined to review the FID in its entirety and on review, to affirm with modified analysis the FID's determination of no violation of section 337. Specifically, as explained in the Commission Opinion issued concurrently herewith, the Commission has determined to: (1) affirm with 
                    <PRTPAGE P="45829"/>
                    modified analysis the FID's finding of no infringement; (2) affirm with modified analysis the FID's finding on failure to satisfy the technical prong of the domestic industry requirement; (3) take no position on the FID's findings as to the economic prong of the domestic industry requirement; and (4) take no position on the FID's invalidity findings. The Commission adopts all findings in the FID that are not inconsistent with the Commission's opinion.
                </P>
                <P>The investigation is terminated.</P>
                <P>The Commission's vote for this determination took place on July 16, 2026.</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: July 16, 2026.</DATED>
                    <NAME>Lisa Barton,</NAME>
                    <TITLE>Secretary to the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14639 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7020-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
                <DEPDOC>[NASA Document Number: 26-041]</DEPDOC>
                <SUBJECT>Name of Information Collection: NASA Assurance of Civil Rights Compliance.</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 reinstatement of an information collection.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NASA, as part of its continuing effort to reduce paperwork and respondent burden, under the Paperwork Reduction Act (PRA), invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are due by August 20, 2026.</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 to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under Review—Open for Public Comments”.
                    </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, 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>The National Aeronautics and Space Administration (NASA) Office of Equal Opportunity and the Office of Procurement, in accordance with Title VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, requires grant awardees to submit an assurance of non-discrimination (NASA Form 1206) as part of their initial grant application package.</P>
                <P>The requirement for assurance of nondiscrimination compliance associated with federally assisted programs is long standing, derives from civil rights implementing regulations, and extends to the grant recipient's sub-grantees, contractors, successors, transferees, and assignees. Grant selectees are required to submit compliance information triennially when their award period exceeds 36 consecutive months. This information collection will also be used to enable NASA to conduct post-award civil rights compliance reviews.</P>
                <P>NASA is committed to effectively performing the Agency's communication function in accordance with Section 203(a)(3) of the National Aeronautics and Space Act of 1958 (as amended) dictates that NASA “provide for the widest practicable and appropriate dissemination of information concerning its activities and the results thereof”, and to enhance public understanding of, and participation in, the nation's aeronautical and space program.</P>
                <HD SOURCE="HD1">II. Methods of Collection</HD>
                <P>Electronic.</P>
                <HD SOURCE="HD1">III. Data</HD>
                <P>
                    <E T="03">Title:</E>
                     NASA Assurance of Civil Rights Compliance.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     2700-0148.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Notice of reinstatement of an information collection.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Business, other for-profit, or not-for-profit.
                </P>
                <P>
                    <E T="03">Estimated Annual Number of Activities:</E>
                     1.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents per Activity:</E>
                     250.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     250.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     4 hours.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     1,000.
                </P>
                <HD SOURCE="HD1">IV. Request for Comments</HD>
                <P>
                    <E T="03">Comments are invited on:</E>
                     (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>PRA Clearance Officer, National Aeronautics and Space Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14615 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7510-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
                <DEPDOC>[Notice: 26-040]</DEPDOC>
                <SUBJECT>Privacy Act of 1974; System of Records</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 a modified system of records.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to the provisions of the Privacy Act of 1974 (5 U.S.C. 552a), the National Aeronautics and Space Administration is issuing public notice of its proposal to significantly alter a previously noticed system of records: Special Personnel Records/NASA 10SPER. This notice incorporates locations and NASA standard routine uses previously published separately from, and cited by reference in, this and other NASA systems of records notices as Appendix A and B, respectively. This notice updates physical safeguards, as set forth below under the caption 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        . Finally, this notice updates the name and contact information of the Chief Privacy Officer and also the location of the Department of Interior data hosting facility.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Submit comments within 30 calendar days from the date of this 
                        <PRTPAGE P="45830"/>
                        publication. The changes will take effect at the end of that period if no adverse comments are received.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit comments to Stayce Hoult, Chief Privacy Officer, Office of the Chief Information Officer, Mary W. Jackson NASA Headquarters, Washington, DC 20546-0001, 256-544-7705, or 
                        <E T="03">NASA-PAOfficer@nasa.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        NASA Chief Privacy Officer, Stayce Hoult, 256-544-7705, or 
                        <E T="03">NASA-PAOfficer@nasa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This system notice includes minor revisions to NASA's existing system of records notice to bring its format into compliance with OMB guidance. It incorporates in whole, as appropriate, information formerly published separately in the 
                    <E T="04">Federal Register</E>
                     as Appendix A, Location Numbers and Mailing Addresses of NASA Installations at which Records are Located, and Appendix B, Standard Routine Uses—NASA. This notice also updates PHYSICAL SAFEGUARDS to reflect current information technology security protocols, and the Chief Privacy Officer name and contact information. Finally, the name and location of The Department of Interior data hosting center was updated to reflect a Headquarters move from Denver, CO to a DOI hosting facility in Albuquerque, NM.
                </P>
                <SIG>
                    <NAME>Stayce Hoult,</NAME>
                    <TITLE>NASA Chief Privacy Officer, National Aeronautics and Space Administration.</TITLE>
                </SIG>
                <PRIACT>
                    <HD SOURCE="HD1">SYSTEM NAME AND NUMBER:</HD>
                    <P>Special Personnel Records, NASA 10SPER.</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>Unclassified.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>Mary W. Jackson NASA Headquarters, Washington, DC 20546-0001.</P>
                    <P>Ames Research Center (NASA), Moffett Field, CA 94035-1000.</P>
                    <P>Armstrong Flight Research Center (NASA), PO Box 273, Edwards, CA 93523-0273.</P>
                    <P>John H. Glenn Research Center at Lewis Field (NASA), 21000 Brook Park Road, Cleveland, OH 44135-3191.</P>
                    <P>Goddard Space Flight Center (NASA), Greenbelt, MD 20771-0001.</P>
                    <P>Lyndon B. Johnson Space Center (NASA), Houston, TX 77058-3696.</P>
                    <P>John F. Kennedy Space Center (NASA), Kennedy Space Center, FL 32899-0001.</P>
                    <P>Langley Research Center (NASA), Hampton, VA 23681-2199.</P>
                    <P>George C. Marshall Space Flight Center (NASA), Marshall Space Flight Center, AL 35812-0001.</P>
                    <P>NASA Shared Services Center (NSSC), Building 5100, Stennis Space Center, MS 39529-6000.</P>
                    <P>New Jersey Post of Duty, 402 East State Street, Trenton, NJ 08608.</P>
                    <P>Department of Interior OST Data Center, 1011 Indian School Rd. NW, Albuquerque, NM 87104.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>Associate Administrator for Human Capital Management, NASA Headquarters (see System Location above for address).</P>
                    <P>
                        <E T="03">Subsystem Managers:</E>
                    </P>
                    <P>Director, Personnel Division, Office of Inspector General and Chief, Elementary and Secondary Programs Branch, Educational Division, NASA Headquarters (see System Location above for address).</P>
                    <P>
                        <E T="03">Director of Personnel:</E>
                    </P>
                    <P>NASA Headquarters (see System Location above for address).</P>
                    <P>NASA Armstrong Flight Research Center (see System Location above for address).</P>
                    <P>NASA Glenn Research Center (see System Location above for address).</P>
                    <P>NASA Goddard Space Flight Center (see System Location above for address).</P>
                    <P>NASA Kennedy Space Center (see System Location above for address).</P>
                    <P>
                        <E T="03">Director of Human Resources:</E>
                    </P>
                    <P>NASA Ames Research Center (see System Location above for address).</P>
                    <P>NASA Johnson Space Center (see System Location above for address).</P>
                    <P>NASA Marshall Space Flight Center (see System Location above for address).</P>
                    <P>Director, Office of Human Resources, NASA Langley Research Center (see System Location above for address).</P>
                    <P>Human Resources Officer, NASA Stennis Space Center (see System Location above for address).</P>
                    <P>Director, Human Resources Services Division, NASA Shared Services Center (see System Location above for address).</P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>51 U.S.C. 20113 (a) and 44 U.S.C. 3101.</P>
                    <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD>
                    <P>Records in this system enable NASA to manage personnel records used to make personnel employment decisions and facilitate decisions regarding the rights and benefits of employees and other special personnel associated with NASA, as and listed in CATEGORIES OF INDIVIDUALS of this system notice.</P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>This system maintains information on (1) candidates for and recipients of awards or NASA training; (2) civilian and active duty military detailees to NASA; (3) participants in enrollee programs; (4) Faculty, Science, National Research Council and other Fellows, and associates; (5) NASA contract and grant awardees and their associates having access to NASA premises and records; (6) individuals with interest in NASA matters including Advisory Committee Members; (6) NASA employees and family members, prospective employees, and former employees; (7) participants in former, existing, and future educational programs who have served as part of the NASA workforce.; and (8) members of the public as noted. While not considered `individuals' under The Privacy Act, this system may also maintain records on international individuals when appropriate.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>Special Program Files including: (1) Foreign National Scientist files; (2) Applications for, and issuance of, passports and visas together with other information for international government travel; (3) Award files; (4) Counseling files, Life and Health Insurance, Retirement, Upward Mobility, and Work Injury Counseling files; (5) Military and Civilian detailee files; (6) Personnel Development files such as nominations for and records of training or education, Upward Mobility Program files, Intern Program files, Apprentice files, and Enrollee Program files; (7) Special Employment files such as Federal Junior Fellowship Program files, Pathways Program files, Summer Employment files, Worker-Trainee Opportunity Program files, NASA Executive Position files, Expert and Consultant files, and Cooperative Education Program files; (8) Welfare to Work files; and (9) Supervisory Appraisals under Competitive Placement Plan.</P>
                    <P>
                        Correspondence and related information including: (1) Claims correspondence and records about insurance such as life, health, and travel; (2) Congressional and other Special Interest correspondence, including employment inquiries; (3) Correspondence and records concerning travel related to permanent change of address; (4) Debt complaint correspondence; (5) Employment interview records; (6) Information related to outside employment and activities of NASA employees; (7) Placement follow-ups; (8) Preemployment inquiries and reference checks; (9) Preliminary records related to possible adverse actions; (10) Records related to reductions in force; (11) 
                        <PRTPAGE P="45831"/>
                        Records under administrative as well as negotiated grievance procedures; (12) Separation information including exit interview records, death certificates and other information concerning death, retirement records, and other information pertaining to separated employees; (13) Special planning analysis and administrative information; (14) Performance appraisal records; (15) Working papers for prospective or pending retirements.
                    </P>
                    <P>Special Records and Rosters including: (1) Locator files, (2) Ranking lists of employees; (3) Promotion candidate lists; (4) Retired military employee records; (5) Retiree records; (6) Follow-up records for educational programs, such as the SHARP and other existing or future programs.</P>
                    <P>Agency-wide and Center automated personnel information: Rosters, applications, recommendations, assignment information, and evaluations of Faculty, Science, National Research Council, and other Fellows, associates, and guest workers including those at NASA Centers but not on NASA rolls; also, information about NASA contract and grant awardees and their associates having access to NASA premises and records.</P>
                    <P>
                        Information about members of advisory committees and similar organizations: All NASA-maintained information of the same types as, but not limited to, that information required in systems of records for which the Office of Personnel Management and other Federal personnel-related agencies publish Government-wide Privacy Act Notices in the 
                        <E T="04">Federal Register</E>
                        .
                    </P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>Individual on whom the record is maintained and Personnel Office(s).</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>Any disclosures of information will be compatible with the purpose for which the Agency collected the information. Under the following routine uses that are unique to this system of records, information in this system may be disclosed:</P>
                    <P>(1) disclosures to organizations or individuals having contract, legal, administrative or cooperative relationships with NASA, including labor unions, academic organizations, governmental organizations, non-profit organizations, and contractors and to organizations or individuals seeking or having available a service or other benefit or advantage. The purpose of such disclosures is to satisfy a need or needs, further cooperative relationships, offer information, or respond to a request; (2) disclosures to Federal agencies developing statistical or data presentations having need of information about individuals in the records; and (3) responses to other Federal agencies and other organizations having legal or administrative responsibilities related to programs and individuals in the records.</P>
                    <P>In addition, the following Standard Routine Uses of information contained in Systems of Records (SORs), subject to the Privacy Act of 1974, are standard for many NASA systems. Any disclosures of information will be compatible with the purpose for which NASA collected the information.</P>
                    <P>
                        1. 
                        <E T="03">Law Enforcement</E>
                        —When a record on its face, or in conjunction with other information, indicates a violation or potential violation of law, whether civil, criminal or regulatory in nature, and whether arising by general statute or particular program statute, or by regulation, rule, or order, disclosure may be made to the appropriate agency, whether Federal, foreign, State, local, or tribal, or other public authority responsible for enforcing, investigating or prosecuting such violation or charged with enforcing or implementing the statute, or rule, regulation, or order, if NASA determines by careful review that the records or information are both relevant and necessary to any enforcement, regulatory, investigative or prosecutive responsibility of the receiving entity.
                    </P>
                    <P>
                        2. 
                        <E T="03">Certain Disclosures to Other Agencies</E>
                        —A record from this SOR may be disclosed to a Federal, State, or local agency maintaining civil, criminal, or other relevant enforcement information or other pertinent information, such as current licenses, if necessary, to obtain information relevant to a NASA decision concerning the hiring or retention of an employee, the issuance of a security clearance, the letting of a contract, or the issuance of a license, grant, or other benefit.
                    </P>
                    <P>
                        3. 
                        <E T="03">Certain Disclosures to Other Federal Agencies</E>
                        —A record from this SOR may be disclosed to a Federal agency, in response to its request, for a matter concerning the hiring or retention of an employee, the issuance of a security clearance, the reporting of an investigation of an employee, the letting of a contract, or the issuance of a license, grant, or other benefit by the requesting agency, to the extent that the information is relevant and necessary to the requesting agency's decision on the matter.
                    </P>
                    <P>
                        4. 
                        <E T="03">Department of Justice</E>
                        —A record from this SOR may be disclosed to the Department of Justice when a) NASA, or any component thereof; or b) any employee of NASA in his or her official capacity; or c) any employee of NASA in his or her individual capacity where the Department of Justice has agreed to represent the employee; or d) the United States, where NASA determines that litigation is likely to affect NASA or any of its components, is a party to litigation or has an interest in such litigation, and by careful review, the use of such records by the Department of Justice is deemed by NASA to be relevant and necessary to the litigation.
                    </P>
                    <P>
                        5. 
                        <E T="03">Courts</E>
                        —A record from this SOR may be disclosed in an appropriate proceeding before a court, grand jury, or administrative or adjudicative body, when NASA 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 and necessary to the proceeding.
                    </P>
                    <P>
                        6. 
                        <E T="03">Response to an Actual or Suspected Compromise or Breach of Personally Identifiable Information</E>
                        —A record from this SOR may be disclosed to appropriate agencies, entities, and persons when (1) NASA suspects or has confirmed that there has been a breach of the system of records; (2) NASA has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, NASA (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 NASA's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.
                    </P>
                    <P>
                        7. 
                        <E T="03">Contractors</E>
                        —A record from this SOR may be disclosed to contractors, grantees, experts, consultants, students, volunteers, and others performing or working on a contract, service, grant, cooperative agreement, or other assignment for the federal government, when necessary to accomplish a NASA function related to this SOR. Individuals provided information under this routine use are subject to the same Privacy Act requirements and limitations on disclosure as are applicable to NASA employees.
                    </P>
                    <P>
                        8. 
                        <E T="03">Members of Congress</E>
                        —A record from this SOR may be disclosed to a Member of Congress or to a Congressional staff member in response to an inquiry of the Congressional office made at the written request of the constituent about whom the record is maintained.
                        <PRTPAGE P="45832"/>
                    </P>
                    <P>
                        9. 
                        <E T="03">Disclosures to Other Federal Agencies in Response to an Actual or Suspected Compromise or Breach of Personally Identifiable Information</E>
                        —A record from this SOR may be disclosed to another Federal agency or Federal entity, when NASA 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>
                        10. 
                        <E T="03">National Archives and Records Administration</E>
                        —A record from this SOR may be disclosed as a routine use to the officers and employees of the National Archives and Records Administration (NARA) pursuant to records management inspections being conducted under the authority of 44 U.S.C. 2904 and 2906.
                    </P>
                    <P>
                        11. 
                        <E T="03">Audit</E>
                        —A record from this SOR may be disclosed to another agency, or organization for purpose of performing audit or oversight operations as authorized by law, but only such information as is necessary and relevant to such audit or oversight function.
                    </P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>Records in this system are maintained as hard-copy documents and on electronic media.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>Records are retrieved from the system by any one or a combination of name, birth date, Social Security Number, or NASA unique identification number.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>Records are maintained and dispositioned in accordance with NASA Records Retention Schedules (NRRS) Schedule 3, Item 19.</P>
                    <HD SOURCE="HD2">ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:</HD>
                    <P>Electronic records are maintained on secure NASA servers and protected in accordance with all Federal standards and those established in NASA regulations at 14 CFR 1212.605. Additionally, NASA server and data management environments employ infrastructure encryption technologies both in data transmission and at rest on servers. Electronic messages sent within and outside of the Agency that convey sensitive data are encrypted and transmitted by staff via pre-approved electronic encryption systems as required by NASA policy. Approved security plans are in place for information systems containing the records in accordance with the Federal Information Security Management Act of 2002 (FISMA) and OMB Circular A-130, Management of Federal Information Resources. Only authorized personnel requiring information in the official discharge of their duties are authorized access to records through approved access or authentication methods. Access to electronic records is achieved only from workstations within the NASA Intranet or via a secure Virtual Private Network (VPN) connection that requires two-factor hardware token authentication or via employee PIV badge authentication from NASA-issued computers. The Department of Interior (DOI) data hosting center in Albuquerque, New Mexico is also compliant with the FISMA and OMB Circular A-130 security standards and requirements.</P>
                    <P>Non-electronic records are secured in locked rooms or locked file cabinets. For information systems maintained by NASA partners, who collect, store, and process records on behalf of NASA, NASA requires documentation and verification of commensurate safeguards in accordance with FISMA, NASA Procedural Requirements (NPR) 2810.1A, and NASA ITS-HBK-2810.02-05.</P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>
                        In accordance with 14 CFR part 1212, Privacy Act—NASA Regulations, information may be obtained by contacting in person or in writing the system or subsystem manager listed above at the location where the records are created and/or maintained. Requests must contain the identifying data concerning the requester (
                        <E T="03">e.g.,</E>
                         first, middle, and last name; date of birth; description; and time periods of the records desired). NASA Regulations also address contesting contents and appealing initial determinations regarding records access.
                    </P>
                    <HD SOURCE="HD2">CONTESTING RECORD PROCEDURES:</HD>
                    <P>
                        In accordance with 14 CFR part 1212, Privacy Act—NASA Regulations, information may be obtained by contacting in person or in writing the system or subsystem manager listed above at the location where the records are created and/or maintained. Requests must contain the identifying data concerning the requester (
                        <E T="03">e.g.,</E>
                         first, middle, and last name; date of birth; description; and time periods of the records desired). NASA Regulations also address contesting contents and appealing initial determinations regarding records access.
                    </P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>
                        In accordance with 14 CFR part 1212, Privacy Act—NASA Regulations, information may be obtained by contacting in person or in writing the system or subsystem manager listed above at the location where the records are created and/or maintained. Requests must contain the identifying data concerning the requester (
                        <E T="03">e.g.,</E>
                         first, middle, and last name; date of birth; description; and time periods of the records desired). NASA Regulations also address contesting contents and appealing initial determinations regarding records access.
                    </P>
                    <HD SOURCE="HD2">EXEMPTIONS PROMULGATED FOR THE SYSTEM:</HD>
                    <P>None.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>• 88 FR 30166.</P>
                    <P>• 81 FR 2244.</P>
                    <P>• 80 FR 72745.</P>
                    <P>• 76 FR 64115.</P>
                    <P>• 72 FR 55817.</P>
                    <P>• 64 FR 69556.</P>
                    <P>• 63 FR 4290. </P>
                </PRIACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14603 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7510-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL COUNCIL ON DISABILITY</AGENCY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE: </HD>
                    <P>The Members of the National Council on Disability (NCD) will hold a virtual Council meeting on Wednesday, August 19, 2026, 12-2 p.m. Eastern Daylight Time (EDT).</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE: </HD>
                    <P>
                        This meeting will occur via Zoom for Government videoconference. Details are available on NCD's event page at 
                        <E T="03">https://www.ncd.gov/meeting/2026-08-19-august-19-2026-council-meeting/.</E>
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS: </HD>
                    <P>Open to the public.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P>NCD's virtual quarterly meeting will include a finance report, governance report; followed by updates from the Council Members regarding engagements with the community since the last meeting; a presentation and vote on the disability curriculum project; a disability middle class framework presentation; and Council discussion on the middle class framework pillars before adjournment.</P>
                    <P>
                        <E T="03">Agenda:</E>
                         The times provided below are approximations for when each agenda item is anticipated to be discussed (all Eastern Daylight Time):
                        <PRTPAGE P="45833"/>
                    </P>
                </PREAMHD>
                <HD SOURCE="HD1">Wednesday, August 19, 2026</HD>
                <FP SOURCE="FP-1">12:00 p.m.-12:05 p.m.—Welcome and call to order; Acceptance of the agenda</FP>
                <FP SOURCE="FP-1">12:05 p.m.-12:15 p.m.—Finance report—FY27 budget presentation, Q&amp;A, vote</FP>
                <FP SOURCE="FP-1">12:15 p.m.-12:20 p.m.—Governance report—summarize electronic votes, memorialize</FP>
                <FP SOURCE="FP-1">12:20 p.m.-12:40 p.m.—Council Member Reports</FP>
                <FP SOURCE="FP-1">12:40 p.m.-12:55 p.m.—Disability curriculum presentation, Q&amp;A, vote</FP>
                <FP SOURCE="FP-1">12:55 p.m.-1:10 p.m.—Disability Middle Class presentation/summary of suggested core areas</FP>
                <FP SOURCE="FP-1">1:10 p.m.-1:45 p.m.—Discussion of Council/Selection of 4 key pillars of framework, next steps</FP>
                <FP SOURCE="FP-1">1:45-2:00 p.m.—New Business, Adjourn</FP>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION: </HD>
                    <P>
                        Nicholas Sabula, Public Affairs Specialist, NCD, 1331 F Street NW, Suite 850, Washington, DC 20004; 202-272-2004 (V), or 
                        <E T="03">nsabula@ncd.gov.</E>
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">ACCOMMODATIONS:</HD>
                    <P>
                         ASL Interpreters will be provided in-room and included during the live streamed meeting, and CART has been arranged for this meeting and will be embedded into the Zoom platform as well as available via streamtext link. The web link to access CART Streamtext: 
                        <E T="03">https://www.streamtext.net/player?event=NCD</E>
                         If you require additional accommodations, please notify Stacey Brown by sending an email to 
                        <E T="03">sbrown@ncd.gov</E>
                         as soon as possible and no later than 24 hours prior to the meeting.
                    </P>
                </PREAMHD>
                <FP>Due to last-minute confirmations or cancellations, NCD may substitute items without advance public notice.</FP>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Anne C. Sommers McIntosh,</NAME>
                    <TITLE>Director of Legislative Affairs and Outreach.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14618 Filed 7-17-26; 11:15 am]</FRDOC>
            <BILCOD>BILLING CODE 8421-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[NRC-2017-0091]</DEPDOC>
                <SUBJECT>Regulatory Analysis Guidelines; Regulatory Analysis Technical Evaluation Handbook; Withdrawal and Resolution of Public Comments</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Nuclear Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Nuclear Regulatory Commission (NRC) is withdrawing NUREG/BR-0058, Revision 5, “Regulatory Analysis Guidelines of the U.S. Nuclear Regulatory Commission,” and NUREG/BR-0184, “Regulatory Analysis Technical Evaluation Handbook.” The NRC continues to prepare regulatory analyses for rulemakings and other regulatory actions consistent with the principles of Office of Management and Budget (OMB) Circular A-4, “Regulatory Analysis,” and is discontinuing issuance of related NRC-specific guidance.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The withdrawal is effective July 21, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Please refer to Docket ID NRC-2017-0091 when contacting the NRC about the availability of information regarding this document. You may obtain publicly available information related to this document using 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-2017-0091. Address questions about Docket IDs in 
                        <E T="03">Regulations.gov</E>
                        to Bridget Curran; telephone: 301-415-1003; email: 
                        <E T="03">Bridget.Curran@nrc.gov.</E>
                         For technical questions, contact the individual(s) listed in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section of this document.
                    </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 ADAMS Public 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 ADAMS accession number for each document referenced (if it is available in ADAMS) is provided the first time that it is mentioned in this document.
                    </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>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        David Suchy, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-4130; email: 
                        <E T="03">David.Suchy@nrc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The NRC is withdrawing agency-specific regulatory analysis guidance documents NUREG/BR-0058, Revision 5, “Regulatory Analysis Guidelines of the U.S. Nuclear Regulatory Commission,” (ADAMS Accession No. ML17100A480) and NUREG/BR-0184, “Regulatory Analysis Technical Evaluation Handbook” (ADAMS Accession No. ML050190193). The NRC previously issued NUREG/BR-0058, Revision 5, and various appendixes, for public comment. See 82 FR 18163, 86 FR 20208, and 87 FR 40280. The draft appendices also incorporated pertinent information from NUREG/BR-0184, “Regulatory Analysis Technical Handbook.”</P>
                <P>The six public comments associated with Docket ID NRC-2017-0091 were considered during the past revision efforts but the NRC will not be responding due to the withdrawal of NUREG/BR-0058 entirely, not just revision 5. The NRC is taking this action in response to Executive Order (E.O.) 14192, “Unleashing Prosperity Through Deregulation” (90 FR 9065; January 31, 2025) and E.O. 14215, “Ensuring Accountability for All Agencies” (90 FR 10447; February 18, 2025). Accordingly, the NRC will be preparing regulatory analyses for rulemakings and other regulatory actions consistent with the principles of OMB Circular A-4, “Regulatory Analysis”, making NUREG/BR-0058 and NUREG/BR-0184 unnecessary.</P>
                <EXTRACT>
                    <FP>
                        (Authority: 42 U.S.C. 2011 
                        <E T="03">et seq.</E>
                        )
                    </FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>Araceli Billoch Colon,</NAME>
                    <TITLE>Acting Director, Division of Guidance, Rulemaking, Economic Analysis, and Technical Editing, Office of Nuclear Material Safety and Safeguards.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14634 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[NRC-2026-3433]</DEPDOC>
                <SUBJECT>Biweekly Notice; Applications and Amendments to Facility Operating Licenses and Combined Licenses Involving No Significant Hazards Considerations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Nuclear Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Biweekly notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to section 189a.(2) of the Atomic Energy Act of 1954, as amended (the Act), the U.S. Nuclear Regulatory Commission (NRC) is publishing this regular biweekly notice. The Act requires the Commission to publish notice of any amendments 
                        <PRTPAGE P="45834"/>
                        issued, or proposed to be issued, and grants the Commission the authority to issue and make immediately effective any amendment to an operating license or combined license, as applicable, upon a determination by the Commission that such amendment involves no significant hazards consideration (NSHC), notwithstanding the pendency before the Commission of a request for a hearing from any person.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be filed by August 20, 2026. A request for a hearing or petitions for leave to intervene must be filed by September 21, 2026. This biweekly notice includes all amendments issued, or proposed to be issued, from June 23, 2026, to July 6, 2026. The last biweekly notice was published on July 7, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by any of the following methods (unless this document describes a different method for submitting comments on a specific subject); 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-2026-3433. Address questions about Docket IDs in 
                        <E T="03">Regulations.gov</E>
                         to Bridget Curran; telephone: 301-415-1003; email: 
                        <E T="03">Bridget.Curran@nrc.gov.</E>
                         For technical questions, contact the individual(s) 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 Nuclear Material Safety and Safeguards, Mail Stop: TWFN-5-A85, 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>
                        Susan Lent, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-1365; email: 
                        <E T="03">Susan.Lent@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-2026-3433, facility name, unit number(s), docket number(s), application date, and subject 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-2026-3433.
                </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 ADAMS Public 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>
                     For the convenience of the reader, instructions about obtaining materials referenced in this document are provided in the “Availability of Documents” section.
                </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-2026-3433, facility name, unit number(s), docket number(s), application date, and subject, 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. Notice of Consideration of Issuance of Amendments to Facility Operating Licenses and Combined Licenses and Proposed No Significant Hazards Consideration Determination</HD>
                <P>
                    For the facility-specific amendment requests shown in this notice, the Commission finds that the licensees' analyses provided, consistent with section 50.91 of title 10 of 
                    <E T="03">the Code of Federal Regulations</E>
                     (10 CFR) “Notice for public comment; State consultation,” are sufficient to support the proposed determinations that these amendment requests involve NSHC. Under the Commission's regulations in 10 CFR 50.92, operation of the facilities in accordance with the proposed amendments 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.
                </P>
                <P>The Commission is seeking public comments on these proposed determinations. Any comments received within 30 days after the date of publication of this notice will be considered in making any final determinations.</P>
                <P>
                    Normally, the Commission will not issue the amendments until the expiration of 60 days after the date of publication of this notice. The Commission may issue any of these license amendments before expiration of the 60-day period provided that its final determination is that the amendment involves NSHC. In addition, the Commission may issue any of these amendments 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 on any of these amendments prior to the expiration of either the comment period or the notice period, it will publish in the 
                    <E T="04">Federal Register</E>
                     a notice of issuance. If the Commission makes a final NSHC determination for any of these amendments, any hearing will take place after issuance. The Commission expects that the need to take action on any amendment before 60 days have elapsed will occur very infrequently.
                </P>
                <HD SOURCE="HD2">A. 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 
                    <PRTPAGE P="45835"/>
                    affected by any of these actions may file a request for a hearing and petition for leave to intervene (petition) with respect to that 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 Commission or a 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 license 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 license 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 the NRC's public website (
                    <E T="03">https://www.nrc.gov/about-nrc/regulatory/adjudicatory/hearing.html#participate</E>
                    ).
                </P>
                <HD SOURCE="HD2">B. Electronic Submissions (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 (
                    <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 their 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 their 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 (
                    <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 is created, the participant must submit adjudicatory documents in the Portable Document Format. Guidance on submissions is available on the NRC's public website (
                    <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 in order 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 (
                    <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 publicly available on the NRC's public website (
                    <E T="03">https://adams.nrc.gov/ehd</E>
                    ), unless otherwise 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 
                    <PRTPAGE P="45836"/>
                    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>The following table provides the plant name, docket number, date of application, ADAMS accession number, and location in the application of the licensees' proposed NSHC determinations. For further details with respect to these license amendment applications, see the applications for amendment, which are available for public inspection in ADAMS. For additional direction on accessing information related to this document, see the “Obtaining Information and Submitting Comments” section of this document.</P>
                <GPOTABLE COLS="2" OPTS="L2,nj,p1,8/9,i1" CDEF="s100,r200">
                    <TTITLE>License Amendment Request(s)</TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Duke Energy Carolinas, LLC; Oconee Nuclear Station, Units 1, 2, and 3; Oconee County, SC; Duke Energy Progress, LLC; Shearon Harris Nuclear Power Plant, Unit 1; Wake and Chatham Counties, NC</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-269, 50-270, 50-287, 50-400.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application date</ENT>
                        <ENT>May 21, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26141A391.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Location in Application of NSHC</ENT>
                        <ENT>Page E-18-E19 of the Enclosure.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The proposed amendments would modify the Shearon Harris Nuclear Power Plant, Unit 1, and Oconee Nuclear Station, Units 1, 2, and 3 technical specifications (TSs) to allow the use of online monitoring (OLM) methodology for determining the calibration frequency of pressure, level, and flow transmitters. The amendments would revise the TS definitions related to channel calibration and add a new administrative program for OLM, thereby transitioning from time-based to condition-based calibration frequencies for affected transmitters. These changes also clarify the scope of transmitters subject to OLM and the associated programmatic controls for calibration activities and dynamic response assessments using noise analysis techniques.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proposed Determination</ENT>
                        <ENT>NSHC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Name of Attorney for Licensee, Mailing Address</ENT>
                        <ENT>Tracey Mitchell LeRoy, Deputy General Counsel, Duke Energy Corporation, 525 S Tryon Street, Charlotte, NC 28202.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">NRC Project Manager, Telephone Number</ENT>
                        <ENT>Tony Sierra, 301-287-9531.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Entergy Operations, Inc.; Arkansas Nuclear One, Unit 2; Pope County, AR; Entergy Operations, Inc., System Energy Resources, Inc., Cooperative Energy, A Mississippi Electric Cooperative, and Entergy Mississippi, LLC; Grand Gulf Nuclear Station, Unit 1; Claiborne County, MS; Entergy Louisiana, LLC, and Entergy Operations, Inc.; River Bend Station, Unit 1; West Feliciana Parish, LA; Entergy Operations, Inc.; Waterford Steam Electric Station, Unit 3; St. Charles Parish, LA</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-368, 50-416, 50-458, 50-382.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application date</ENT>
                        <ENT>March 31, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26090A114.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Location in Application of NSHC</ENT>
                        <ENT>Pages 4-5 of the Enclosure.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The proposed amendments would adopt Technical Specifications Task Force (TSTF) Traveler TSTF-599, “Eliminate Periodic Surveillance Test of Simultaneous Start of Redundant Diesel Generators,” which is an approved change to the Standard Technical Specifications, into the Arkansas Nuclear One, Unit 2; Grand Gulf Nuclear Station, Unit 1; River Bend Station, Unit 1; and Waterford Steam Electric Station, Unit 3 technical specifications.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proposed Determination</ENT>
                        <ENT>NSHC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Name of Attorney for Licensee, Mailing Address</ENT>
                        <ENT>Susan Raimo, Associate General Counsel-Nuclear, 101 Constitution Avenue NW, Washington, DC 20001.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">NRC Project Manager, Telephone Number</ENT>
                        <ENT>Jason Drake, 301-415-8378.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Northern States Power Company; Prairie Island Nuclear Generating Plant, Units 1 and 2; Goodhue County, MN</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-282, 50-306.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application date</ENT>
                        <ENT>June 23, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26174A386.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Location in Application of NSHC</ENT>
                        <ENT>Pages 4-5 of the Enclosure.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The proposed amendments would adopt Technical Specification (TS) Task Force (TSTF) Traveler 585 (TSTF-585), “Revise LCO [Limiting Condition for Operation] 3.0.3 to Require Managing Risk.” TSTF-585 revises LCO 3.0.3 to require assessing and managing plant risk whenever LCO 3.0.3 is entered. If the risk assessment determines that continuing plant operation is acceptable and other conditions are satisfied, 24 hours from entry into LCO 3.0.3 is permitted to initiate a shutdown. Otherwise, initiation of the shutdown is required immediately. The proposed amendments would also revise or add some TS Required Actions to direct a plant shutdown instead of entry into LCO 3.0.3.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proposed Determination</ENT>
                        <ENT>NSHC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Name of Attorney for Licensee, Mailing Address</ENT>
                        <ENT>Andrew Van Duzer, Assistant General Counsel; Xcel Energy; 701 Pennsylvania Ave. NW; Suite 250; Washington, DC 20004.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">NRC Project Manager, Telephone Number</ENT>
                        <ENT>Robert Kuntz, 301-415-3733.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <PRTPAGE P="45837"/>
                        <ENT I="21">
                            <E T="02">PSEG Nuclear LLC; Hope Creek Generating Station; Salem County, NJ; PSEG Nuclear LLC; Salem Nuclear Generating Station, Unit Nos. 1 and 2; Salem County, NJ</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-354, 50-272, 50-311.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application date</ENT>
                        <ENT>May 27, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26148A253.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Location in Application of NSHC</ENT>
                        <ENT>Pages 3-4 of the Enclosure.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The proposed amendments would revise technical specifications to adopt Technical Specifications Task Force (TSTF) Traveler TSTF-599, Revision 1, “Eliminate Periodic Surveillance Test of Simultaneous Start of Redundant Diesel Generators,” with site-specific variations and editorial changes. The proposed changes would eliminate the periodic surveillance requirement to verify that all required diesel generators achieve rated frequency and voltage within the specified time period when started simultaneously.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proposed Determination</ENT>
                        <ENT>NSHC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Name of Attorney for Licensee, Mailing Address</ENT>
                        <ENT>Francis Romano, PSEG-Services Corporation, 80 Park Plaza, T-10, Newark, NJ 07102.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">NRC Project Manager, Telephone Number</ENT>
                        <ENT>Audrey Klett, 301-415-0489.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Tennessee Valley Authority; Sequoyah Nuclear Plant, Units 1 and 2; Hamilton County, TN; Tennessee Valley Authority; Watts Bar Nuclear Plant, Units 1 and 2; Rhea County, TN</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-327, 50-328, 50-390, 50-391.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application date</ENT>
                        <ENT>June 2, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26153A303.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Location in Application of NSHC</ENT>
                        <ENT>Pages E8-E9 of the Enclosure.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The proposed amendments would revise certain specifications in Sequoyah Nuclear Plant, Units 1 and 2, and Watts Bar Nuclear Plant, Units 1 and 2 to remove the term “CORE ALTERATIONS” and make other changes. The proposed changes are requested in accordance with Technical Specifications Task Force (TSTF) Traveler TSTF-471, Revision 1, “Eliminate use of term CORE ALTERATIONS in ACTIONS and Notes.”</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proposed Determination</ENT>
                        <ENT>NSHC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Name of Attorney for Licensee, Mailing Address</ENT>
                        <ENT>Edward C. Meade; (Interim) Executive VP and General Counsel; Tennessee Valley Authority; 400 West Summit Hill Drive; WT 6A; Knoxville, TN 37902.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">NRC Project Manager, Telephone Number</ENT>
                        <ENT>Kimberly Green, 301-415-1627.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Virginia Electric and Power Company; Surry Power Station, Unit Nos. 1 and 2; Surry County, VA</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-280, 50-281.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application date</ENT>
                        <ENT>May 18, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26138A237.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Location in Application of NSHC</ENT>
                        <ENT>Pages 25-27 of Enclosure 1.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The proposed amendments would revise Technical Specification (TS) 2.3, “Limiting Safety System Settings, Protective Instrumentation,” TS 3.7, “Instrumentation Systems,” and TS 4.1, “Operational Safety Review,” to adjust the reactor trip on turbine trip interlock function from P-7 (Low Power Reactor Trip Block) to P-8 (Power Range Neutron Flux).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proposed Determination</ENT>
                        <ENT>NSHC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Name of Attorney for Licensee, Mailing Address</ENT>
                        <ENT>W.S. Blair, Senior Counsel, Dominion Energy Services, Inc., 120 Tredegar St., RS-2, Richmond, VA 23219.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">NRC Project Manager, Telephone Number</ENT>
                        <ENT>John Klos, 301-415-5136.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Virginia Electric and Power Company; Surry Power Station, Unit Nos. 1 and 2; Surry County, VA</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-280, 50-281.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application date</ENT>
                        <ENT>May 27, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26147A328.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Location in Application of NSHC</ENT>
                        <ENT>Pages 35-37 of Attachment 1.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The proposed amendments would add a footnote to Technical Specification (TS) 3.16, “Emergency Power System,” to allow a one-time extension of the Allowed Outage Time in TS 3.16 Action B.1.a.3 from 7 days to 14 days for Surry Power Station, Unit No. 2, supportive of the replacement of feeder cables on the Unit No. 1 Emergency Diesel Generator.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Proposed Determination</ENT>
                        <ENT>NSHC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Name of Attorney for Licensee, Mailing Address</ENT>
                        <ENT>W.S. Blair, Senior Counsel, Dominion Energy Services, Inc., 120 Tredegar St., RS-2, Richmond, VA 23219.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">NRC Project Manager, Telephone Number</ENT>
                        <ENT>John Klos, 301-415-5136.</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">III. Notice of Issuance of Amendments to Facility Operating Licenses and Combined Licenses</HD>
                <P>During the period since publication of the last biweekly notice, the Commission has issued the following amendments. The Commission has determined for each of these amendments that the application complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations. The Commission has made appropriate findings as required by the Act and the Commission's rules and regulations in 10 CFR chapter I, which are set forth in the license amendment.</P>
                <P>
                    A notice of consideration of issuance of amendment to facility operating license or combined license, as 
                    <PRTPAGE P="45838"/>
                    applicable, proposed NSHC determination, and opportunity for a hearing in connection with these actions, were published in the 
                    <E T="04">Federal Register</E>
                     as indicated in the safety evaluation for each amendment.
                </P>
                <P>Unless otherwise indicated, the Commission has determined that these amendments satisfy the criteria for categorical exclusion in accordance with 10 CFR 51.22. Therefore, pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared for these amendments. If the Commission has prepared an environmental assessment under the special circumstances provision in 10 CFR 51.22(b) and has made a determination based on that assessment, it is so indicated in the safety evaluation for the amendment.</P>
                <P>
                    For further details with respect to each action, see the amendment and associated documents such as the Commission's letter and safety evaluation, which may be obtained using the ADAMS accession numbers indicated in the following table. The safety evaluation will provide the ADAMS accession numbers for the application for amendment and the 
                    <E T="04">Federal Register</E>
                     citation for any environmental assessment. All of these items can be accessed as described in the “Obtaining Information and Submitting Comments” section of this document.
                </P>
                <GPOTABLE COLS="2" OPTS="L2,nj,p1,8/9,i1" CDEF="s100,r200">
                    <TTITLE>License Amendment Issuance(s)</TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Dominion Energy Nuclear Connecticut, Inc.; Millstone Power Station, Unit No. 3; New London County, CT</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket No</ENT>
                        <ENT>50-423.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>July 1, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26168A238.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment No</ENT>
                        <ENT>296.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendment</ENT>
                        <ENT>The amendment revised the Millstone Power Station, Unit No. 3, technical specification to adopt Technical Specification Task Force (TSTF) Traveler TSTF-601, Revision 1, “Extend Shield Building Completion Time After Refueling.” The amendment permits extension of the completion time when the Unit No. 3 “Secondary Containment” is inoperable while in Hot Standby or Hot Shutdown, and Startup (criticality) has not been entered following refueling.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>No.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Florida Power &amp; Light Company, et al.; St. Lucie Plant, Unit Nos. 1 and 2; St. Lucie County, FL; Florida Power &amp; Light Company; Turkey Point Nuclear Generating Unit Nos. 3 and 4; Miami-Dade County, FL; NextEra Energy Point Beach, LLC; Point Beach Nuclear Plant, Units 1 and 2; Manitowoc County, WI; NextEra Energy Seabrook, LLC; Seabrook Station, Unit No. 1; Rockingham County, NH</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-266, 50-301, 50-443, 50-335, 50-389, 50-250, 50-251.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>July 2, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26177A282.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Nos</ENT>
                        <ENT>Point Beach (Unit 1-280, Unit 2-282); Seabrook (Unit 1-181); St. Lucie (Unit 1-258, Unit 2-215); Turkey Point (Unit 3-306, Unit 4-299).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The amendments revised the technical specifications for each license to adopt an online monitoring program to transition from time-based frequency to condition-based frequency for checking the calibrations of some pressure, flow, and level transmitters.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>No.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Florida Power &amp; Light Company; St. Lucie Plant, Unit No. 1; St. Lucie County, FL</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket No</ENT>
                        <ENT>50-335.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>June 18, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26163A185.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment No</ENT>
                        <ENT>257.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendment</ENT>
                        <ENT>The amendment revised Technical Specification (TS) 3.7.15, “Spent Fuel Pool Storage,” and TS 4.3, “Fuel Storage,” to support updated spent fuel pool and new fuel vault criticality analyses.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>Yes.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">PSEG Nuclear LLC; Salem Nuclear Generating Station, Unit Nos. 1 and 2; Salem County, NJ</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-272, 50-311.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>June 26, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26149A187.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Nos</ENT>
                        <ENT>354 (Unit 1) and 336 (Unit 2).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The amendments revised the nuclear criticality safety analysis and the technical specifications for fresh and spent fuel storage. The amendments also included minor editorial changes to the technical specifications.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>No.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Southern Nuclear Operating Company, Inc.; Vogtle Electric Generating Plant, Units 3 and 4; Burke County, GA</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>52-025, 52-026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>June 23, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26163A214.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="45839"/>
                        <ENT I="01">Amendment Nos</ENT>
                        <ENT>216 (Unit 3) and 213 (Unit 4).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The amendments modified Technical Specification 3.5.2, “Core Makeup Tanks (CMTs)—Operating,” to revise the minimum allowable CMT boron concentration and the minimum average CMT boron concentration.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>Yes.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Tennessee Valley Authority; Watts Bar Nuclear Plant, Units 1 and 2; Rhea County, TN</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket Nos</ENT>
                        <ENT>50-390, 50-391.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>June 25, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26155A167.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Nos</ENT>
                        <ENT>181 (Unit 1) and 86 (Unit 2).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendments</ENT>
                        <ENT>The amendments revised various technical specifications within Watts Bar Nuclear Plant, Units 1 and 2, Technical Specification Sections 1.4, 3.4, 3.7, and 3.9, by adopting several Technical Specifications Task Force travelers.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>No.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Union Electric Company; Callaway Plant, Unit No. 1; Callaway County, MO</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket No</ENT>
                        <ENT>50-483.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>June 24, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26134A082.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment No</ENT>
                        <ENT>242.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendment</ENT>
                        <ENT>The amendment revised the Callaway Plant, Unit No. 1 Technical Specifications (TSs) to adopt Technical Specifications Task Force (TSTF)-599, Revision 1, “Eliminate Periodic Surveillance Test of Simultaneous Start of Redundant Diesel Generators,” which is an approved change to the Standard Technical Specifications, into the Callaway TSs. The amendment eliminates the periodic surveillance requirement to verify that all required diesel generators achieve rated frequency and voltage within the specified time period when started simultaneously.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>No.</ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Vistra Operations Company LLC; Davis-Besse Nuclear Power Station, Unit 1; Ottawa County, OH</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket No</ENT>
                        <ENT>50-346.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment Date</ENT>
                        <ENT>June 17, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26149A026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Amendment No</ENT>
                        <ENT>313.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendment</ENT>
                        <ENT>The amendment adopted Technical Specification Task Force Traveler 585, “Revise LCO [Limiting Condition for Operation] 3.0.3 to Require Managing Risk“.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Public Comments Received as to Proposed NSHC (Yes/No)</ENT>
                        <ENT>No.</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="2" OPTS="L2,nj,p1,8/9,i1" CDEF="s100,r100">
                    <TTITLE>License Amendment Request(s)—Repeat of Individual Federal Register Notice</TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Vistra Operations Company LLC; Beaver Valley Power Station, Unit 1; Beaver County, PA</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Docket No</ENT>
                        <ENT>50-334.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Application Date</ENT>
                        <ENT>June 26, 2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ADAMS Accession No</ENT>
                        <ENT>ML26146A267.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Brief Description of Amendment</ENT>
                        <ENT>The proposed amendment would revise the technical specifications to allow an alternative completion time for restoring equipment to accommodate repairs, specifically to allow a one-time extended Completion Time from 72 hours to 12 days to restore one train of Emergency Core Cooling System to Operable.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Date &amp; Cite of 
                            <E T="02">Federal Register</E>
                             Individual Notice
                        </ENT>
                        <ENT>June 17, 2026 (91 FR 36883).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Expiration Dates for Public Comments &amp; Hearing Requests</ENT>
                        <ENT>July 20, 2026 (Public Comments); August 17, 2026 (Hearing Request).</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Authority:</E>
                     42 U.S.C. 2011 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 13, 2026.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>Mahmoud Jardaneh,</NAME>
                    <TITLE>Acting Director, Division of Licensing Projects 1, Office of Nuclear Reactor Regulation.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14652 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="45840"/>
                <AGENCY TYPE="S">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[Docket No. 040-38417; CEQ ID EAXX-429-00-000-1784130326; NRC-2026-3499]</DEPDOC>
                <SUBJECT>DISA Technologies, Inc.; Environmental Assessment and Finding of No Significant Impact</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Nuclear Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; issuance.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Nuclear Regulatory Commission (NRC) is considering an amendment to source materials license SUA-1605, which the NRC issued to DISA Technologies, Inc. (DISA) in 2025 for the operation of its high-pressure slurry ablation (HPSA) technology to remediate abandoned uranium mine (AUM) waste. If approved, the amendment would modify the license to allow the use of SNF Inc.'s FLOPAM AN 934 SH (FLOPAM), an anionic, polyacrylamide flocculant (APAM) in solid (powder or granular) form, in the HPSA process at abandoned uranium mine waste sites. The NRC staff is issuing a generic environmental assessment (EA) and finding of no significant impact (FONSI) associated with the proposed license amendment. This generic EA supplements the NRC staff's 2025 generic EA for the license issuance.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The EA and FONSI referenced in this document are available on July 21, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Please refer to Docket ID NRC-2026-3499 when contacting the NRC about the availability of information regarding this document. You may obtain publicly available information related to this document using 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-2026-3499. Address questions about Docket IDs in 
                        <E T="03">Regulations.gov</E>
                         to Bridget Curran; telephone: 301-415-1003; email: 
                        <E T="03">Bridget.Curran@nrc.gov.</E>
                         For technical questions, contact the individual(s) listed in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section of this document.
                    </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 ADAMS Public 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 “Environmental Assessment for Proposed License Amendment for Use of Flocculant in the High-Pressure Slurry Ablation Process” is available in ADAMS under Accession No. ML26196A294.
                    </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>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Christine Pineda, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-6789; email: 
                        <E T="03">Christine.Pineda@nrc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>The NRC is making available to the public the “Environmental Assessment for Proposed License Amendment for Use of Flocculant in the High-Pressure Slurry Ablation Process.” The NRC is also developing a separate Safety Evaluation Report.</P>
                <HD SOURCE="HD1">II. Introduction</HD>
                <P>The NRC is considering the approval of a license amendment that would authorize DISA to use flocculant in its HPSA process. DISA specifically requests to use solid FLOPAM, a specific formulation of APAM, a synthetic, water-soluble polymer that is used primarily to pull suspended particles out of liquids through a process called flocculation. Solid APAMs such as FLOPAM are used in applications such as mining and mineral processing, wastewater treatment, and in land applications such as agriculture to improve irrigation and control soil erosion. DISA's license authorizes operation of the HPSA process on AUM waste, which results in the concentration of source material (uranium and thorium) for authorized storage and disposition (ADAMS Accession No. ML26008A090). Using a solid APAM such as FLOPAM in the HPSA process would improve the separation of solid materials from process water after the materials have passed through the HPSA unit.</P>
                <P>
                    As required by section 51.21 of title 10 of the 
                    <E T="03">Code of Federal Regulations</E>
                     (10 CFR), “Criteria for and identification of licensing and regulatory actions requiring environmental assessments,” the NRC has prepared an EA documenting its evaluation. The NRC concluded that the proposed license amendment would have no significant impact if conditions and proposed operations at each site are consistent with the potential impacts and assumptions detailed in the generic EA, which supplements the NRC's 2025 generic EA for license issuance (ADAMS Accession No. ML25265A212). The NRC will review information submitted by DISA for each site against the generic EA and the 2025 generic EA to determine what areas may require site-specific environmental impact analysis.
                </P>
                <P>A summary of the generic EA follows. Based on the results of the EA, the NRC has determined not to prepare an environmental impact statement for the license amendment and is issuing a FONSI.</P>
                <HD SOURCE="HD1">III. Summary of the Generic Environmental Assessment</HD>
                <HD SOURCE="HD2">Description of the Proposed Action</HD>
                <P>The proposed action is a license amendment to allow DISA to use FLOPAM, a specific APAM formulation, in the HPSA process. DISA would need to identify any use of an alternative formulation of flocculant in the site-specific premobilization notification (PMN) for NRC review. The NRC's EA assesses the impacts of using specifically solid form FLOPAM and similar APAMs, and therefore any use of non-solid APAM or non-APAM flocculants would require additional environmental review.</P>
                <P>
                    DISA found through testing that FLOPAM would improve the separation of solid materials from water after materials have passed through the HPSA unit. The improvement in separation would result in increasing the concentration of uranium and thorium in the fines concentrates. DISA would add FLOPAM to the fines concentrates during a thickener stage that would occur after the fines concentrates are separated from the coarse material. From the thickener stage, the clumped fines concentrates would flow to a filter press for dewatering, where process water would be recycled. DISA proposes to add 
                    <PRTPAGE P="45841"/>
                    approximately 150 grams (about five ounces) of FLOPAM per ton of fines concentrates.
                </P>
                <P>The NRC staff expects that most of the FLOPAM would be sorbed onto the fines concentrates or removed from process water via DISA's water treatment system. Residual quantities of FLOPAM would likely remain dissolved in the process water and would recirculate throughout the HPSA system as the process water is reused. The NRC staff conservatively assumes that FLOPAM concentrations in recirculating water would be less than 10 milligrams per liter (mg/L), a concentration that is comparable to concentrations applied to agricultural fields to improve irrigation.</P>
                <P>The NRC staff has determined that recirculation of residual FLOPAM and similar APAMs through the HPSA system could mechanically degrade the APAM's chemical structure, leading to the formation of acrylamide monomer (AMD) in trace amounts. AMD has been found to break down within hours to weeks.</P>
                <HD SOURCE="HD2">The Need for the Proposed Action</HD>
                <P>The purpose of the proposed action is to enable DISA to more effectively concentrate uranium and thorium in the fines concentrates that result from the HPSA process, thus also removing these materials more effectively from the process water and coarse material. Since the coarse material and process water would be deposited on the ground after the HPSA processing is complete, improving the removal of uranium and thorium would reduce the amount of these radionuclides that are deposited back onto the ground surface.</P>
                <HD SOURCE="HD2">Environmental Impacts of the Proposed Action</HD>
                <P>The NRC staff developed a generic assessment of the potential environmental impacts of using FLOPAM and similarly formulated solid APAMs in the HPSA process. The NRC staff determined that this change in the HPSA process would not affect the NRC's evaluation in the 2025 generic EA of the following resource areas: land use, transportation, geologic resources, air quality, noise, historic and cultural resources, visual and scenic resources, socioeconomics, and public health.</P>
                <P>The NRC staff determined that the proposed action would not have significant impacts on water resources, soils, ecological resources, occupational health and safety, and waste management. Using solid form FLOPAM or APAMs would not change the quantities of coarse material or fines concentrates resulting from the HPSA process. It should increase the concentrations of radionuclides in the fines concentrates, reduce concentrations of radionuclides dissolved in process water, and reduce the concentrations of radionuclides in the coarse material. Discharged process water containing residual solid FLOPAM or similar APAMs and potentially very small quantities of AMD would not have significant impacts to native soils. The NRC staff will conduct site-specific assessments of the impacts of depositing coarse material back on the sites, including the presence of trace quantities of APAM and AMD in the coarse material.</P>
                <P>The NRC staff has determined that the potential impacts of FLOPAM and similar solid APAMs use on surface water would not be significant primarily because the staff does not expect discharges to surface waters. Further, solid APAMs are widely used in land applications and has been found to be nontoxic, only residual quantities would remain in process water (less than concentrations used in agriculture), and DISA would need to ensure compliance with applicable standards for discharges to the ground surface. The NRC staff expects that the amount of FLOPAM remaining in process water discharged to the ground would be less than 10 mg/L, which is comparable to amounts of FLOPAM and similar solid APAMs used in agriculture. Any trace quantities of AMD contained in the process water discharges are likely to undergo microbial degradation within hours to weeks.</P>
                <P>
                    Solid FLOPAM and similar APAM use is not likely to result in a change to the potential for groundwater impacts as assessed in the NRC's 2025 generic EA. The 2025 EA concluded that proposed HPSA operations would have no impact on groundwater as long as DISA does not disturb native soils below the site water table (
                    <E T="03">e.g.,</E>
                     in areas with shallow aquifers) and does not breach a confining layer.
                </P>
                <P>The NRC staff does not expect that solid APAM use in the concentration proposed would significantly affect ecological resources. FLOPAM is commonly used, does not bioaccumulate, and in the concentrations proposed would not have a negative effect on flora or fauna. Peer-reviewed publications concerning the ecological toxicity, fate, transport, and degradation of solid APAM (such as FLOPAM) indicate that the concentrations at which APAM could have negative effects on studied aquatic organisms are more than 10 times the anticipated concentrations of APAM in HPSA process water that would be discharged onsite (and 10 times the quantities used in agriculture). Process water would be discharged to the ground and not into water bodies. FLOPAM does not bioaccumulate and lethal doses to certain aquatic organisms were found to be greater than 100 mg/L. The primary hazard presented by the use of solid APAMs (such as FLOPAM) is the degradation of APAM polymer to AMD. While AMD is recognized as a harmful substance, published research indicates that AMD biodegrades in oxygenated surface water, soils, shallow groundwater, and aerobic sediments within hours to 30 days. DISA would need to abide by any applicable federal, state, local, or tribal requirements for discharges of process water containing APAM or AMD.</P>
                <P>Similarly, FLOPAM and similar solid APAMs use in accordance with the manufacturer's instructions would not have significant effects on worker health. FLOPAM does not have chronic or acute toxicity effects. DISA has used FLOPAM in testing processes and has not experienced issues related to worker health and safety.</P>
                <P>The use of FLOPAM and similar solid APAMs would not generate a separate waste stream. The solid APAM used in the HPSA process would end up in existing streams: the fines concentrates, process water, water treatment media (filters), and coarse material, as discussed above and in the generic EA. Therefore, solid APAM use would not have significant effects on waste management.</P>
                <P>Before mobilizing to a site, DISA would provide site-specific information to the NRC in a PMN, which the NRC staff would review to determine whether the conclusions and assumptions in the generic EA and in the 2025 generic EA apply for that site. If any site conditions, proposed operations, or potential impacts are not consistent with the impacts and assumptions in the EAs, the NRC staff would assess whether further analysis is needed.</P>
                <HD SOURCE="HD2">Environmental Impacts of the Alternatives to the Proposed Action</HD>
                <P>
                    As an alternative to the proposed license amendment, the NRC considered the no-action alternative. Under the no-action alternative, the NRC would not amend the license and DISA would not be allowed to use FLOPAM in its HPSA process. If the NRC does not amend DISA's license to allow use of FLOPAM or a similar solid APAMs in HPSA operations, DISA would need to identify another way to improve the separation of uranium-bearing solids from the process water. The potential 
                    <PRTPAGE P="45842"/>
                    environmental impacts of the no-action alternative would depend on the nature of an alternative separation method. Alternatively, DISA might choose not to operate HPSA, and section 2.2 of the 2025 generic EA describes other site remediation activities that could occur at the AUM waste sites.
                </P>
                <HD SOURCE="HD2">Agencies and Persons Consulted</HD>
                <P>The NRC provided a draft of this EA for awareness to the 14 states identified by DISA for potential HPSA operations. The final EA will be sent to the U.S. Environmental Protection Agency, the 14 states, Federally recognized Indian tribes, and DISA.</P>
                <P>
                    The proposed action is a license amendment that itself has no potential to affect threatened or endangered species under the Endangered Species Act (ESA). Upon receiving the site-specific PMNs, the NRC will assess the potential effects of HPSA operations on threatened and endangered species at each site, and the need for consultation under Section 7 of the ESA for each site. The NRC staff's National Historic Preservation Act (NHPA) Section 106 responsibilities are complete for the licensing undertaking according to section 800.3(a)(1) title 36 of the 
                    <E T="03">Code of Federal Regulations,</E>
                     which states: “If the undertaking is a type of activity that does not have the potential to cause effects on historic properties, assuming such historic properties were present, the agency official has no further obligations under Section 106 or this part.” The NRC's consultation and assessment of the potential effects of HPSA operations on cultural and historic properties would occur when specific sites are identified.
                </P>
                <HD SOURCE="HD1">IV. Finding of No Significant Impact</HD>
                <P>Based on its review, in accordance with the requirements of 10 CFR part 51, the NRC has determined that granting the license amendment would not significantly affect the quality of the human environment at a specific site if the site conditions, proposed operations, and potential impacts at the site are consistent with the assumptions and potential impacts assessed in this EA and in the 2025 generic EA. In accordance with 10 CFR 51.31, the NRC concludes that the proposed action does not warrant the preparation of an environmental impact statement, and, pursuant to 10 CFR 51.32, a FONSI is appropriate. If the PMN indicates there are differences in site conditions, proposed operations, or potential impacts, the NRC will evaluate whether these differences require further analysis. If DISA proposes to use a flocculant other than FLOPAM, DISA will need to include this information in the PMN and the NRC staff will determine whether additional environmental review is needed. Subject to confirmation of site-specific conditions and upon the successful conclusion of site-specific consultation under Section 106 of the NHPA, the NRC staff concludes that the proposed HPSA operations with the use of FLOPAM or other similar solid APAMs will not have significant impacts on historic and cultural resources at AUM waste sites. Subject to confirmation of site-specific conditions and upon the successful conclusion of site-specific consultation under Section 7 of the ESA, the NRC staff also concludes that the proposed HPSA operations with the use of FLOPAM or other similar solid APAMs will have no effect or would not be likely to adversely affect any Federally listed threatened or endangered species.</P>
                <P>
                    <E T="03">Authority:</E>
                     42 U.S.C. 2011 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>Robert Sun,</NAME>
                    <TITLE>Chief, Environmental Review Materials Branch, Division of Spent Fuel Storage, and Transportation, Office of Nuclear Material Safety, and Safeguards.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14653 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">POSTAL REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[Docket Nos. K2025-1611; MC2026-312 and K2026-308]</DEPDOC>
                <SUBJECT>New Postal Products</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Postal Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Commission is noticing a recent Postal Service filing for the Commission's consideration concerning a negotiated service agreement. This notice informs the public of the filing, invites public comment, and takes other administrative steps.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments are due:</E>
                         July 24, 2026.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit comments electronically via the Commission's Filing Online system at 
                        <E T="03">https://www.prc.gov.</E>
                         Those who cannot submit comments electronically should contact the person identified in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section by telephone for advice on filing alternatives.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>David A. Trissell, General Counsel, at 202-789-6820.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Introduction</FP>
                    <FP SOURCE="FP-2">II. Public Proceeding(s)</FP>
                    <FP SOURCE="FP-2">III. Summary Proceeding(s)</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>Pursuant to 39 CFR 3041.405, the Commission gives notice that the Postal Service filed request(s) for the Commission to consider matters related to Competitive negotiated service agreement(s). The request(s) may propose the addition of a negotiated service agreement from the Competitive product list or the modification of an existing product currently appearing on the Competitive product list.</P>
                <P>
                    The public portions of the Postal Service's request(s) can be accessed via the Commission's website (
                    <E T="03">http://www.prc.gov</E>
                    ). Non-public portions of the Postal Service's request(s), if any, can be accessed through compliance with the requirements of 39 CFR 3011.301.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See</E>
                         Docket No. RM2018-3, Order Adopting Final Rules Relating to Non-Public Information, June 27, 2018, Attachment A at 19-22 (Order No. 4679).
                    </P>
                </FTNT>
                <P>Section II identifies the docket number(s) associated with each Postal Service request, if any, that will be reviewed in a public proceeding as defined by 39 CFR 3010.101(p), the title of each such request, the request's acceptance date, and the authority cited by the Postal Service for each request. For each such request, the Commission appoints an officer of the Commission to represent the interests of the general public in the proceeding, pursuant to 39 U.S.C. 505 and 39 CFR 3000.114 (Public Representative). The Public Representative does not represent any individual person, entity or particular point of view, and, when Commission attorneys are appointed, no attorney-client relationship is established. Section II also establishes comment deadline(s) pertaining to each such request.</P>
                <P>The Commission invites comments on whether the Postal Service's request(s) identified in Section II, if any, are consistent with the policies of title 39. Applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3035, and 39 CFR part 3041. Comment deadline(s) for each such request, if any, appear in Section II.</P>
                <P>
                    Section III identifies the docket number(s) associated with each Postal Service request, if any, to add a standardized distinct product to the Competitive product list or to amend a standardized distinct product, the title of each such request, the request's 
                    <PRTPAGE P="45843"/>
                    acceptance date, and the authority cited by the Postal Service for each request. Standardized distinct products are negotiated service agreements that are variations of one or more Competitive products, and for which financial models, minimum rates, and classification criteria have undergone advance Commission review. 
                    <E T="03">See</E>
                     39 CFR 3041.110(n); 39 CFR 3041.205(a). Such requests are reviewed in summary proceedings pursuant to 39 CFR 3041.325(c)(2) and 39 CFR 3041.505(f)(1). Pursuant to 39 CFR 3041.405(c)-(d), the Commission does not appoint a Public Representative or request public comment in proceedings to review such requests.
                </P>
                <HD SOURCE="HD1">II. Public Proceeding(s)</HD>
                <P>
                    1. 
                    <E T="03">Docket No(s).:</E>
                     K2025-1611; 
                    <E T="03">Filing Title:</E>
                     USPS Request Concerning Amendment One to Priority Mail &amp; USPS Ground Advantage Contract 813, with Material Filed Under Seal; 
                    <E T="03">Filing Acceptance Date:</E>
                     July 16, 2026; 
                    <E T="03">Filing Authority:</E>
                     39 CFR. 3035.105 and 39 CFR 3041.505; 
                    <E T="03">Public Representative:</E>
                     Jennaca Upperman; 
                    <E T="03">Comments Due:</E>
                     July 24, 2026.
                </P>
                <HD SOURCE="HD1">III. Summary Proceeding(s)</HD>
                <P>
                    1. 
                    <E T="03">Docket No(s).:</E>
                     MC2026-312 and K2026-308; 
                    <E T="03">Filing Title:</E>
                     USPS Request to Add New Mid-Market Standardized Distinct Product, PM-GA Contract 1045, and Notice of Filing Materials Under Seal; 
                    <E T="03">Filing Acceptance Date:</E>
                     July 16, 2026; 
                    <E T="03">Filing Authority:</E>
                     39 U.S.C. 3642 and 3633, 39 CFR 3035.105, and 39 CFR 3041.325.
                </P>
                <P>
                    This Notice will be published in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <NAME>Danielle LeFlore,</NAME>
                    <TITLE>Legal Assistant.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14676 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-FW-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">POSTAL SERVICE</AGENCY>
                <SUBJECT>International Product Change—Priority Mail Express International, Priority Mail International &amp; First-Class Package International Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Postal Service.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a Priority Mail Express International, Priority Mail International &amp; First-Class Package International Service contract to the list of Negotiated Service Agreements in the Competitive Product List in the Mail Classification Schedule.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of notice:</E>
                         July 21, 2026.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Christopher C. Meyerson, (202) 268-7820.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on July 13, 2026, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail Express International, Priority Mail International &amp; First-Class Package International Service Contract 117 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2026-299 and K2026-296.
                </P>
                <SIG>
                    <NAME>Kevin Rayburn,</NAME>
                    <TITLE>Attorney, Ethics and Legal Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14695 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-105931; File No. SR-ICC-2026-006]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Proposed Rule Change to the Risk Management Model Description for the CDS Clearing Service</SUBJECT>
                <DATE>July 16, 2026.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on July 6, 2026, ICE Clear Credit LLC (“ICC” or “ICE Clear Credit”) 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 primarily by ICC. 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. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The principal purpose of the proposed rule change is to revise the Risk Management Model Description for the CDS Clearing Service. These revisions do not require any changes to the ICC CDS Clearing Rules (the “Rules”).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         ICC's Rules are available on ICC's public website: 
                        <E T="03">https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, ICC 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. ICC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.</P>
                <HD SOURCE="HD2">(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">(a) Purpose</HD>
                <P>
                    The primary purpose of the proposed rule change is to amend the Risk Management Model Description to enhance the contagion risk methodology. In particular, the proposed change is intended to improve risk management by introducing a new term, Profit Given Default (“PGD”), within the amended contagion risk methodology. As more fully described below, PGD is designed to provide portfolio benefits (
                    <E T="03">i.e.,</E>
                     reduced risk requirements) when a Clearing Participant (“CP”) clears applicable offsetting positions. This change would enhance ICC's risk management by providing a more capital-efficient approach for capturing the accumulation of exposures that exhibit strong positive correlation between a CP and single name Risk Factors during stress market conditions.
                    <SU>4</SU>
                    <FTREF/>
                     In addition, this change would provide some portfolio benefits to incentivize CPs to hedge their accumulation of wrong-way-risk (“WWR”) exposure, while allowing ICC to continue to maintain a conservative approach to managing the accumulation of directional WWR exposure. In addition, ICC proposes minor revisions to update certain references to publicly available sources of information. ICC believes that such revisions will facilitate the prompt and accurate clearance and settlement of securities transactions and derivative agreements, contracts, and transactions for which it is responsible. ICC proposes to make such changes effective following Commission approval of the proposed rule change. The proposed revisions are described in detail as follows.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Such conditions may arise when there is a strong positive correlation between a CP's default risk and the occurrence of large losses in a CP's portfolio.
                    </P>
                </FTNT>
                <PRTPAGE P="45844"/>
                <HD SOURCE="HD3">I. Contagion Risk Methodology Enhancement</HD>
                <P>
                    ICC proposes an enhancement to the contagion risk methodology within the Jump-to-Default (“JTD”) component of the risk management model. The JTD component represents one component of the Initial Margin (“IM”) requirement that ICC calculates for each CP portfolio.
                    <SU>5</SU>
                    <FTREF/>
                     This component accounts for losses from credit events on single names where a CP has sold or bought protection. The JTD component includes a (i) WWR consideration, which accounts for potential losses under stress market conditions 
                    <SU>6</SU>
                    <FTREF/>
                     when a CP and certain single name Risk Factors are strongly positively correlated,
                    <SU>7</SU>
                    <FTREF/>
                     (ii) a contagion risk consideration, which captures the accumulation of such single name Risk Factors remaining exposures across the portfolio, and (iii) an idiosyncratic JTD consideration, which accounts for credit events associated with single name Risk Factors.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         ICC's IM requirements consist of a set of individual components that account for credit spread and recovery rate risk, bid-offer risk, basis risk, JTD risk, concentration risk, and interest rate risk.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         supra note 2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Specific WWR results from self-referencing trades (
                        <E T="03">i.e.,</E>
                         trades whose underlying reference entity is the CP itself, or an entity that is guaranteed by, or affiliated with the CP). General WWR results from trades that involve Risk Factors that are highly correlated with the CP, or with an entity that is guaranteed by, or affiliated with the CP. Each index, sub-index or underlying single name reference entity is considered a separate Risk Factor.
                    </P>
                </FTNT>
                <P>
                    The current risk management methodology incorporates considerations of idiosyncratic credit events 
                    <SU>8</SU>
                    <FTREF/>
                     and associated potential losses. These credit event losses are termed Loss-Given-Default (“LGD”). The LGD quantity is calculated on a Risk Factor Group (“RFG”) 
                    <SU>9</SU>
                    <FTREF/>
                     level, and accounts for exposure from credit events associated with reference entities in a given RFG. LGD is calculated by applying a single name-specific set of recovery rates to the single name positions that would lead to a loss if a credit event occurs.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         For example, company-specific credit events that are not tied to broader market conditions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         A set of single name Risk Factors related by a common parental ownership structure are considered a RFG.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 82853 (March 12, 2018), 83 FR 11570 (March 15, 2018) (File No. SR-ICC-2018-001) (containing additional information on ICC's LGD framework).
                    </P>
                </FTNT>
                <P>
                    ICC proposes to introduce the concept of Profit Given Default (“PGD”) 
                    <SU>11</SU>
                    <FTREF/>
                     in the Risk Management Model Description. PGD is designed to provide portfolio benefits (
                    <E T="03">i.e.,</E>
                     reduced risk requirements due to recognized potential gains, during stress market conditions) when a CP has applicable offsetting positions, which would encourage CPs to clear applicable offsetting positions to hedge and diversify exposure for certain single name Risk Factors that are strongly positively correlated to CPs under stress market conditions. ICC proposes to incorporate PGD in the contagion risk methodology to provide a more capital-efficient approach for capturing the accumulation of exposures that exhibit strong positive correlation between a CP and single name Risk Factors during stress market conditions, as further described below.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         PGD is a concept that ICC proposes to introduce to complement the existing LGD framework by recognizing the effects of applicable offsetting positions within a CP's portfolio under the amended contagion methodology. Both LGD and PGD are an extension of the existing P/LGD framework. Whereas LGD reflects credit event losses, PGD represents potential gains, during stress market conditions, that may arise from positions that offset such exposures. As proposed, PGD is defined such that it reflects only non-negative values (
                        <E T="03">i.e.,</E>
                         potential offsetting gains or zero). Such change would thus provide some portfolio benefits to incentivize CPs to hedge their WWR exposure. For the avoidance of doubt, the introduction of PGD into the risk methodology does not otherwise constitute a hedging mechanism.
                    </P>
                </FTNT>
                <P>
                    ICC proposes amendments to the Risk Management Model Description to introduce the concept of PGD in Section I. ICC would amend equation 5 to define PGD for a RFG as the greater of zero or the sum of the Profit/LGD calculations for each Risk Factor in a given RFG, such that PGD cannot be a negative value.
                    <SU>12</SU>
                    <FTREF/>
                     PGD would thus reflect either potential offsetting gains or zero.
                    <SU>13</SU>
                    <FTREF/>
                     PGD would also be included in equation 6 to allow for the RFG level PGD to be attributed to each Risk Factor within the considered RFG and in equation 7 to addresses cases where the RFG contains only one Risk Factor.
                    <SU>14</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">Id.</E>
                         ICC calculates Profit/LGD for each Risk Factor as the sum of the worst credit event outcomes per Risk Sub-Factor (“RSF”). RSF refers to a specific single name reference obligation seniority and doc clause combination.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Currently, only limited offsets in the event Risk Factors exhibit positive Profit/LGD are provided as part of the RFG LGD calculation. 
                        <E T="03">See</E>
                         supra note 8.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Where a RFG contains only one Risk Factor, ICC computes the LGD as the risk exposure due to a credit event for a given underlying reference entity.
                    </P>
                </FTNT>
                <P>ICC proposes to incorporate these changes in the portfolio level contagion risk analysis in Section IV.4. Equation 65 sets out the contagion risk consideration that captures the effects of the accumulation of uncollateralized LGD from Risk Factors generating general WWR. The proposed amendments integrate PGD in equation 65 by incorporating the PGD at the Risk Factor level (as defined in equation 6) for a considered RFG. Such change would provide a more capital efficient approach when capturing the accumulation of exposures exhibiting a strong positive correlation between a CP and single name Risk Factors during stress market conditions. Moreover, such change would provide some portfolio benefits to incentivize CPs to hedge their WWR exposure, while allowing ICC to continue to maintain a conservative approach to managing directional WWR exposure.</P>
                <P>
                    Furthermore, ICC has analyzed the impact of the proposed change to the contagion methodology on its CPs' total requirements (
                    <E T="03">i.e.,</E>
                     IM and Guaranty Fund).
                    <SU>15</SU>
                    <FTREF/>
                     On average, ICC observed a very small impact across its CPs based on this analysis.
                    <SU>16</SU>
                    <FTREF/>
                     However, depending on CPs' cleared positions and the extent to which applicable offsetting positions are present, certain CPs may see a reduction in their total requirements under the enhanced methodology.
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         confidential Exhibit 3 for additional information and analysis regarding the impact of the proposed change to the contagion methodology on CPs' total requirements.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">II. Additional Changes</HD>
                <P>
                    ICC proposes minor revisions to update certain references to publicly available sources of information. Currently, Section IV.2 of the Risk Management Model Description references a proprietary classification system that ICC uses to categorize cleared single name Risk Factors in the banking sector and to assign country of domicile. Under the proposed changes, banking sector categorization would be based on the publicly available list of Global Systemically Important Banks 
                    <SU>18</SU>
                    <FTREF/>
                     and the country of domicile assignment would follow the publicly accessible Global Legal Entity Identifier Foundation system.
                    <SU>19</SU>
                    <FTREF/>
                     ICC also proposes a clarifying footnote explaining how sovereign single name Risk Factors are mapped to the ultimate parent's country of domicile. These publicly available sources are globally recognized and offer additional transparency, as they are publicly accessible. The proposed changes do not amend ICC's risk methodology, which continues to apply to cleared single name Risk Factors, with strong positive correlation with CPs, within the sovereign and banking sectors.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         See the list of Global Systemically Important Banks available at the following: 
                        <E T="03">https://www.fsb.org/2025/11/2025-list-of-global-systemically-important-banks-g-sibs/#23eb4050-ebe3-46ad-bd07-87b6a9781b4c.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         Information on the Global Legal Entity Identifier Foundation is available at the following: 
                        <E T="03">https://www.gleif.org/en.</E>
                    </P>
                </FTNT>
                <PRTPAGE P="45845"/>
                <HD SOURCE="HD3">(b) Statutory Basis</HD>
                <P>
                    ICC believes that the proposed rule change is consistent with the requirements of Section 17A of the Securities Exchange Act of 1934 (the “Act”) 
                    <SU>20</SU>
                    <FTREF/>
                     and the regulations thereunder applicable to it, including the applicable standards under Rule 17Ad-22.
                    <SU>21</SU>
                    <FTREF/>
                     In particular, Section 17A(b)(3)(F) of the Act 
                    <SU>22</SU>
                    <FTREF/>
                     requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts and transactions, to assure the safeguarding of securities and funds in the custody or control of the clearing agency or for which it is responsible, and to protect investors and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         15 U.S.C. 78q-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.17ad-22.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         15 U.S.C. 78q-1(b)(3)(F).
                    </P>
                </FTNT>
                <P>
                    ICC proposes to amend the Risk Management Model Description to enhance the contagion risk methodology and update certain references to publicly available sources of information. As described above, the proposed changes incorporate a new concept of PGD in the Risk Management Model Description to provide a more capital-efficient approach for capturing the accumulation of exposures that exhibit strong positive correlation between a CP and single name Risk Factors during stress market conditions. ICC believes that this amended methodology enhances ICC's risk management methodology by providing a more capital-efficient approach. The additional changes provide transparency with respect to ICC's risk management practices by utilizing publicly available sources of information. ICC believes that having policies procedures that clearly, accurately, and transparently document its risk management practices is an important component to the effectiveness of ICC's risk management system and supports ICC's ability to maintain adequate financial resources, which promotes the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions, the safeguarding of securities and funds in the custody or control of ICC or for which it is responsible, and the protection of investors and the public interest. Accordingly, in ICC's view, the proposed rule change is designed to promote the prompt and accurate clearance and settlement of the contracts cleared at ICC, to assure the safeguarding of securities and funds in the custody or control of ICC or for which it is responsible, and to protect investors and the public interest, within the meaning of Section 17A(b)(3)(F) of the Act.
                    <SU>23</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Rule 17Ad-22(e)(3)(i) 
                    <SU>24</SU>
                    <FTREF/>
                     requires ICC to establish, implement, maintain and enforce written policies and procedures reasonably designed to maintain a sound risk management framework for comprehensively managing legal, credit, liquidity, operational, general business, investment, custody, and other risks that arise in or are borne by it, which includes risk management policies, procedures, and systems designed to identify, measure, monitor, and manage the range of risks that arise in or are borne by it, that are subject to review on a specified periodic basis and approved by the Board annually. The Risk Management Model Description documents key aspects of ICC's risk management approach, and the proposed amendments would ensure further transparency in the documentation, including by updating certain references to publicly available sources. Such changes thereby support the continued effective maintenance and operation of ICC's risk management framework, including the Risk Management Model Description. As such, the amendments would satisfy the requirements of Rule 17Ad-22(e)(3)(i).
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         17 CFR 240.17ad-22(e)(3)(i).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Rule 17Ad-22(e)(4)(ii) 
                    <SU>26</SU>
                    <FTREF/>
                     requires ICC to establish, implement, maintain, and enforce written policies and procedures reasonably designed to effectively identify, measure, monitor, and manage its credit exposures to participants and those arising from its payment, clearing, and settlement processes, including by maintaining additional financial resources at the minimum to enable it to cover a wide range of foreseeable stress scenarios that include, but are not limited to, the default of the two participant families that would potentially cause the largest aggregate credit exposure for ICC in extreme but plausible market conditions. As discussed above, the proposed changes would provide a more capital efficient approach when capturing the accumulation of exposures exhibiting a strong positive correlation between a CP and single name Risk Factors during stress market conditions. Moreover, the proposed changes would provide some portfolio benefits to incentivize CPs to hedge their WWR exposure, while allowing ICC to continue to maintain a conservative approach to managing directional WWR exposures. The proposed rule change would thereby enhance ICC's contagion risk methodology and ICC would continue to ensure that it has the ability to manage risks, maintain appropriate financial resources, and withstand the pressures of defaults, consistent with the requirements of Rule 17Ad-22(e)(4)(ii).
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         17 CFR 240.17ad-22(e)(4)(ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">Id</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">(B) Clearing Agency's Statement on Burden on Competition</HD>
                <P>ICC does not believe the proposed rule change would have any impact, or impose any burden, on competition. The proposed changes to the Risk Management Model Description will apply uniformly across all market participants. Therefore, ICC does not believe the proposed rule change would impose any burden on competition that is inappropriate in furtherance of the purposes of the Act.</P>
                <HD SOURCE="HD2">(C) Clearing Agency's Statement on Comments on the Proposed Rule Change</HD>
                <P>Written comments relating to the proposed rule change have not been solicited or received. ICC will notify the Commission of any written comments received by ICC.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change</HD>
                <P>
                    Within 45 days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will:
                </P>
                <P>(A) by order approve or disapprove such proposed rule change, or</P>
                <P>(B) institute proceedings to determine whether the proposed rule change should be 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-regulations/self-regulatory-organization-rulemaking</E>
                    ); or
                    <PRTPAGE P="45846"/>
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-ICC-2026-006 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.</P>
                <FP>
                    All submissions should refer to file number SR-ICC-2026-006. 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 of submission. The Commission will post all comments on the Commission's internet website 
                    <E T="03">(https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking</E>
                    ). Copies of the filing will be available for inspection and copying at the principal office of ICE Clear Credit and on ICE Clear Credit's website at 
                    <E T="03">https://www.ice.com/clear-credit/regulation.</E>
                </FP>
                <P>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-ICC-2026-006 and should be submitted on or before August 11, 2026.</P>
                <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>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary. </TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14626 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[OMB Control No. 3235-0179]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 31a-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 (SEC or “Commission”) is soliciting comments on the proposed collection of information described below.
                </P>
                <P>
                    Section 31(a)(1) of the Investment Company Act of 1940 (the “Act”) 
                    <SU>1</SU>
                    <FTREF/>
                     requires registered investment companies (“funds”) and certain underwriters, broker-dealers, investment advisers, and depositors to maintain and preserve records as prescribed by Commission rules.
                    <SU>2</SU>
                    <FTREF/>
                     Rule 31a-1 under the Act specifies the books and records that each of these entities must maintain.
                    <SU>3</SU>
                    <FTREF/>
                     Rule 31a-2 under the Act specifies the time periods that entities must retain certain books and records, including those required to be maintained under rule 31a-1.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 80a1 
                        <E T="03">et seq.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         15 U.S.C. 80a30(a)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         17 CFR 270.31a1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 270.31a2.
                    </P>
                </FTNT>
                <P>Retention of records, as required by the rule, is necessary to ensure access to material business and financial information about funds and certain related entities. Commission staff periodically inspect the operations of funds to ensure they are in compliance with the Act and regulations under the Act. Due to the limits on the Commission's resources, however, each fund may only be inspected at intervals of several years. In addition, the prosecution of persons who have engaged in certain violations of the federal securities laws may not be limited by timing restrictions. For these reasons, Commission staff often need information relating to events or transactions that occurred years ago. Without the requirement to preserve books, records, and other documents, Commission staff would have difficulty determining whether the fund was in compliance with the law in such areas as valuation of its portfolio securities, computation of the prices investors paid, and, when purchasing and selling fund shares, types and amounts of expenses the fund incurred, kinds of investments the fund purchased, actions of affiliated persons, or whether the fund had engaged in any illegal or fraudulent activities.</P>
                <P>
                    Rule 31a-2 requires every fund to preserve permanently, and in an easily accessible place for the first two years, all books and records required under rule 31a-1(b)(1)-(4).
                    <SU>5</SU>
                    <FTREF/>
                     Every fund must preserve for at least six years, and in an easily accessible place for the first two years: all books and records required under rule 31a-1(b)(5)-(12); 
                    <SU>6</SU>
                    <FTREF/>
                     all vouchers, memoranda, correspondence, checkbooks, bank statements, canceled checks, cash reconciliations, canceled stock certificates, and all schedules evidencing and supporting each computation of net asset value of fund shares, including schedules evidencing and supporting each computation of an adjustment to net asset value based on swing pricing policies and procedures; all schedules evidencing and supporting each computation of a liquidity fee by a money market fund pursuant to rule 2a-7(c)(2); 
                    <SU>7</SU>
                    <FTREF/>
                     other documents required to be maintained by rule 31a-1(a) and not enumerated in rule 31a-1(b); any advertisement, pamphlet, circular, form letter, or other sales literature addressed or intended for distribution to prospective investors; 
                    <SU>8</SU>
                    <FTREF/>
                     any record of the initial determination that a director is not an interested person of the fund, and each subsequent determination that the director is not an interested person of the fund; 
                    <SU>9</SU>
                    <FTREF/>
                     any materials used by the disinterested directors of a fund to determine that a person who is acting as legal counsel to those directors is an independent legal counsel; 
                    <SU>10</SU>
                    <FTREF/>
                     and any documents or other written information considered by the directors of the fund pursuant to section 15(c) of the Act in approving the terms or renewal of a contract or agreement between the fund and an investment advisor.
                    <SU>11</SU>
                    <FTREF/>
                     Every underwriter, broker, or dealer that is a majority-owned subsidiary of a fund must preserve records required to be preserved by brokers and dealers under rules adopted under section 17 of the Securities Exchange Act of 1934 (the “Exchange Act”) 
                    <SU>12</SU>
                    <FTREF/>
                     for the periods 
                    <PRTPAGE P="45847"/>
                    established in those rules.
                    <SU>13</SU>
                    <FTREF/>
                     Every depositor of a fund and every principal underwriter of a fund (other than a closed-end fund) must preserve for at least six years records required to be maintained by brokers and dealers under rules adopted under section 17 of the Exchange Act to the extent the records are necessary or appropriate to record the entity's transactions with the fund.
                    <SU>14</SU>
                    <FTREF/>
                     Every investment adviser that is a majority-owned subsidiary of a fund must preserve the records required to be preserved by investment advisers under rules adopted under section 204 of the Investment Advisers Act of 1940 (the “Investment Advisers Act”) 
                    <SU>15</SU>
                    <FTREF/>
                     for the periods specified in those rules.
                    <SU>16</SU>
                    <FTREF/>
                     Every investment adviser that is not a majority-owned subsidiary of a fund must preserve for at least six years records required to be maintained by registered investment advisers under rules adopted under section 204 of the Investment Advisers Act to the extent the records are necessary or appropriate to reflect the adviser's transactions with the fund.
                    <SU>17</SU>
                    <FTREF/>
                     Compliance with rule 31a-2 is mandatory.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         17 CFR 270.31a2(a)(1). These include, among other records, journals detailing daily purchases and sales of securities; general and auxiliary ledgers reflecting all assets, liability, reserve, capital, income, and expense accounts; separate ledgers reflecting for each portfolio security as of the trade date all “long” and “short” positions carried by the fund for its own account; and corporate charters, certificates of incorporation, by-laws, and minute books. 17 CFR 270.31a-1(b)(1)-(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         17 CFR 270.31a2(a)(2). These include, among other records, records of each brokerage order given in connection with purchases and sales of securities by the fund; records of all other portfolio purchases or sales; records of all puts, calls, spreads, straddles, and other options in which the fund has an interest, which it has granted, or which it has guaranteed; records of proof of money balances in all ledger accounts; files of all advisory material received from the investment adviser; and memoranda identifying persons, committees, or groups authorizing the purchase or sale of securities for the fund. 17 CFR 270.31a1(b)(5)-(12).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">Id. See also</E>
                         17 CFR 270.2a-7(c)(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         17 CFR 270.31a2(a)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         17 CFR 270.31a2(a)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         17 CFR 270.31a2(a)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         17 CFR 270.31a2(a)(6). Section 15 of the Act requires that fund directors, including a majority of independent directors, annually approve the fund's advisory contract and that the directors first obtain from the adviser the information reasonably necessary to evaluate the contract. The information request requirement in section 15 provides fund directors, including independent directors, a tool for obtaining the information they need to represent shareholder interests. 15 U.S.C. 80a-15(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         15 U.S.C. 78q.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         17 CFR 270.31a2(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         17 CFR 270.31a2(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 80b4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         17 CFR 270.31a2(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         17 CFR 270.31a2(e).
                    </P>
                </FTNT>
                <P>We estimate that approximately 2,741 funds are required to comply with rule 31a-2 annually. Each fund is estimated to spend 221 hours per year preserving the required books and records, at a monetized cost burden of $49,283 per fund. The total annual burden is approximately 605,761 burden hours and total annual time costs of approximately $135,084,703. The Commission estimates that funds incur about $40,602 in external cost burden each year, resulting in an aggregate external cost burden of approximately $111,290,082. 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>Written comments are invited on: (a) whether this proposed collection of information is necessary for the proper performance of the functions of the SEC, including whether the information will have practical utility; (b) the accuracy of the SEC's estimate of the burden imposed by the proposed collection of information, including the validity of the methodology and the 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 respondents, including through the use of automated, electronic collection techniques or other forms of information technology.</P>
                <P>
                    Please direct your written comments on this 60-Day Collection Notice to Austin Gerig, Director/Chief Data Officer, Securities and Exchange Commission, c/o Tanya Ruttenberg via email to 
                    <E T="03">PaperworkReductionAct@sec.gov</E>
                     by September 21, 2026. There will be a second opportunity to comment on this SEC request following the 
                    <E T="04">Federal Register</E>
                     publishing a 30-Day Submission Notice.
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14632 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[OMB Control No. 3235-0151]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 17Ac3-1 and Form TA-W</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 (“SEC” or “Commission”) is soliciting comments on the proposed collection of information provided for in Rule 17Ac3-1(a) (17 CFR 240.17Ac3-1(a)) and Form TA-W (17 CFR 249b.101), under the Securities Exchange Act of 1934 (15 U.S.C. 78a 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <P>
                    Section 17A of the Exchange Act 
                    <SU>1</SU>
                    <FTREF/>
                     generally requires transfer agents performing any transfer agent function with respect to any security registered under Section 12 of the Exchange Act 
                    <SU>2</SU>
                    <FTREF/>
                     or issued by certain insurance or investment companies to register with an appropriate regulatory agency (“ARA”) as defined in Section 3(a)(34)(B) of the Exchange Act.
                    <SU>3</SU>
                    <FTREF/>
                     Section 17A(c)(4)(B) of the Exchange Act 
                    <SU>4</SU>
                    <FTREF/>
                     authorizes transfer agents registered with an ARA to withdraw from registration by filing with the ARA a written notice of withdrawal and by agreeing to such terms and conditions as the ARA deems necessary or appropriate in the public interest, for the protection of investors, or in furtherance of the purposes of Section 17A.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78q-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         15 U.S.C. 78l.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78c(a)(34)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         15 U.S.C. 78q-1(c)(4)(B).
                    </P>
                </FTNT>
                <P>
                    In order to implement Section 17A(c)(4)(B), the Commission promulgated Rule 17Ac3-1(a) and accompanying Form TA-W (“the form”).
                    <SU>5</SU>
                    <FTREF/>
                     Rule 17Ac3-1(a) provides that notice of withdrawal from registration as a transfer agent with the Commission shall be filed on Form TA-W. The Commission later amended Rule 17Ac3-1(a) and accompanying Form TA-W to require that the form be filed in electronic format on EDGAR.
                    <SU>6</SU>
                    <FTREF/>
                     Form TA-W requires the withdrawing transfer agent to provide the Commission with certain information, including: (1) the locations where transfer agent activities are or were performed; (2) the reasons for ceasing the performance of such activities; (3) disclosure of unsatisfied judgments or liens; and (4) information regarding successor transfer agents.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Exchange Act Release No. 13914 (Sep. 1, 1977), 42 FR 44983 (Sep. 8, 1977); 17 CFR 240.17Ac3-1 and 17 CFR 249b.101—Form TA-W.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Exchange Act Release No. 54864 (Dec. 4, 2007), 71 FR 74698 (Dec. 12, 2006).
                    </P>
                </FTNT>
                <P>
                    From 2023 through 2025, respondents annually filed approximately 12 Forms TA-W with the Commission. The Commission therefore estimates that 12 transfer agents are expected to rely on Rule 17Ac3-1 and Form TA-W annually over the subsequent 3 years. The Commission estimates that it takes approximately 30 minutes per transfer agent to complete a Form TA-W. The estimated aggregate annual time burden is thus approximately 6 hours (12 filings × 0.5 hours), which comprises a one-time reporting burden. The estimated internal labor cost of compliance per filing is approximately $72 (0.5 hours × $144 average hourly rate for a general office clerk).
                    <SU>7</SU>
                    <FTREF/>
                     The estimated aggregate 
                    <PRTPAGE P="45848"/>
                    internal compliance cost per year is thus approximately $864 (12 filings × $72 per filing).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         For purposes of calculating the dollar cost burdens associated with respondents using Form TA-W, the Commission relies on the Occupational Employment and Wage Statistics (“OEWS”) from the U.S. Bureau of Labor Statistics (“BLS”). 
                        <E T="03">See Occupational Employment and Wage Classification,</E>
                         U.S. Bureau of Labor Statistics, 
                        <E T="03">https://www.bls.gov/oes/; see also Standard Occupational Classification, U.S. Bureau of Labor Statistics, https://www.bls.gov/soc/</E>
                         (describing occupational classification system used by BLS); 
                        <E T="04">Exec. Off. Of the President, Off. Of Mgmt.</E>
                         &amp; Budget, North American Industrial Classification System (2022), 
                        <E T="03">available at</E>
                          
                        <E T="03">https://www.census.gov/naics/reference_files_tools/2022_NAICS_Manual.pdf</E>
                         (describing the industry adjusted for changes in the seasonally adjusted employment cost index for private wages and salaries between the data reference period and when the data are released by BLS. 
                        <E T="03">See Employment Cost Index, U.S. Bureau of Labor Statistics, https://www.bls.gov/eci/.</E>
                         The adjusted mean hourly wage is then multiplied by a factor that accounts for nonwage costs borne by employers, such as bonuses, benefits, and overhead. 
                        <PRTPAGE/>
                        This factor is calculated as an average over the 10 most recently available years of data of the ratio of the Bureau of Economic Analysis's annual gross output data for the North American Industry Classification System (“NAICS) number to total annual wages across all occupations for the NAICS number in the OEWS data.
                    </P>
                </FTNT>
                <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>
                    <E T="03">Written comments are invited on:</E>
                     (a) whether this proposed collection of information is necessary for the proper performance of the functions of the SEC, including whether the information will have practical utility; (b) the accuracy of the SEC's estimate of the burden imposed by the proposed collection of information, including the validity of the methodology and the 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 respondents, including through the use of automated, electronic collection techniques or other forms of information technology.
                </P>
                <P>
                    Please direct your written comments on this 60-Day Collection Notice to Austin Gerig, Director/Chief Data Officer, Securities and Exchange Commission, c/o Tanya Ruttenberg via email to 
                    <E T="03">PaperworkReductionAct@sec.gov</E>
                     by September 21, 2026.
                </P>
                <SIG>
                    <DATED>Dated: July 16, 2026.</DATED>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14631 Filed 7-20-26; 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. 34-105927; File No. SR-OCC-2026-006]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by The Options Clearing Corporation Concerning the Synthetic Futures Model</SUBJECT>
                <DATE>July 16, 2026.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Exchange Act” or “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on July 8, 2026, The Options Clearing Corporation (“OCC”) 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 primarily by OCC. OCC filed the proposed rule change pursuant to Section 19(b)(3)(A) 
                    <SU>3</SU>
                    <FTREF/>
                     of the Act and paragraph (f) of Rule 19b-4 
                    <SU>4</SU>
                    <FTREF/>
                     thereunder, such that the proposed rule change was immediately effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>This proposed rule change would expand the use of an existing OCC margin model used to margin certain futures products that OCC clears in its capacity as a derivatives clearing organization (“DCO”) registered with the Commodity Futures Trading Commission (“CFTC”).</P>
                <P>OCC provided proposed changes to its STANS Methodology Description as confidential Exhibit 5 to File No. SR-OCC-2026-006. Material proposed to be added to the STANS Methodology Description as currently in effect is underlined and material proposed to be deleted is marked with strikethrough text. All capitalized terms not defined herein have the same meaning as set forth in the OCC By-Laws and Rules.</P>
                <HD SOURCE="HD1">II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, OCC 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. OCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.</P>
                <HD SOURCE="HD2">(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its capacity as a DCO registered with the CFTC, OCC clears certain futures products on behalf of CFTC-registered designated contract markets (“DCMs”). In its role as a DCO, OCC guarantees the performance of its Clearing Members by becoming the buyer to every seller and the seller to every buyer, thereby guaranteeing performance of the futures contracts regardless of the potential default of one of its Clearing Members. OCC manages its financial risk exposure to its Clearing Members through financial safeguards, including the collection of margin collateral from Clearing Members designed to, among other things, address the market risk associated with a Clearing Member's positions during the period of time OCC has determined it would take to liquidate those positions.</P>
                <P>
                    To calculate Clearing Member margin requirements, OCC has developed models within its proprietary margin methodology, the System for Theoretical Analysis and Numerical Simulations (“STANS”). With respect to futures products, one of those models is OCC's Synthetic Futures Model, which OCC uses to model settlement prices for certain futures products. Originally developed to margin futures on Cboe's Volatility Index (“VIX”),
                    <SU>5</SU>
                    <FTREF/>
                     OCC has since extended the Synthetic Futures Model to other futures products cleared by OCC. The Synthetic Futures Model generates prices and correlations using risk factors that are based on observed futures prices (
                    <E T="03">i.e.,</E>
                     the “synthetic” futures contract),
                    <SU>6</SU>
                    <FTREF/>
                     as opposed to using the underlying itself. Accordingly, this model is more appropriate for pricing futures products where the underlying contract is not traded and, as such, cannot be valued using the cost-of-carry relationship applied to traded contracts.
                    <SU>7</SU>
                    <FTREF/>
                     This approach enables the model to account for variations in futures volatility across the term structure. The Synthetic Futures component within STANS is used for futures products where it is crucial to explicitly capture the dynamics of various tenors of a product, such as futures on volatility indices, futures on interest rates, and futures on crude oil.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 85873 (May 16, 2019), 84 FR 23620 (May 22, 2019) (SR-OCC-2019-002). OCC now models VIX price returns using the Volatility Index Futures Model, implemented in 2022. 
                        <E T="03">See</E>
                         Exchange Act Release No. 95319 (July 19, 2022), 87 FR 44167 (July 25, 2022) (SR-OCC-2022-001).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         A “synthetic” futures time series, for the intended purposes of OCC, relates to a uniform substitute for a time series of daily settlement prices for actual futures contracts, which persists over many expiration cycles and thus can be used as a basis for econometric analysis.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Exchange Act Release No. 85873, 
                        <E T="03">supra</E>
                         note 5, at 23621.
                    </P>
                </FTNT>
                <P>
                    The Cboe Futures Exchange (“CFE”) now intends to list two new futures products on indices whose value measures the total return of the 50 best performing stocks and the 50 lowest performing stocks, respectively, included in the Cboe U.S. Large-Mid Cap 100 Equal Weighted Index (“Lead &amp; 
                    <PRTPAGE P="45849"/>
                    Lag Futures”). This proposed rule change would allow OCC to use its Synthetic Futures Model to support CFE's Lead &amp; Lag Futures and other futures that a DCM may list in the future with similar dynamics for which OCC's Quantitative Risk Management business unit (“QRM”) determines the Synthetic Futures Model is appropriate.
                </P>
                <HD SOURCE="HD3">1. Purpose</HD>
                <HD SOURCE="HD3">Background</HD>
                <P>
                    On May 16, 2019, the Commission approved a proposed rule change by OCC to enhance its margin model to simulate price returns for VIX futures 
                    <SU>8</SU>
                    <FTREF/>
                     and allow for more appropriate modeling of the risk attributes of such products. The proposed methodology enhancements included (1) introducing synthetic futures into the process for daily re-estimation of prices and correlations for VIX and (2) an enhanced statistical distribution for modeling price returns for synthetic futures. Prior to that change, OCC modeled the futures settlement prices for VIX futures in STANS based on the index underlying the futures contract. This approach was subject to several limitations, including that, among other things, (i) the underlying (
                    <E T="03">i.e.,</E>
                     the index), is not a traded contract and, therefore, cannot be replicated by static portfolios of traded contracts; and (ii) the term structure of the futures market cannot be modeled using the underlying index.
                    <SU>9</SU>
                    <FTREF/>
                     Due to the limitations of modeling the term structure, the model used for VIX prior to the change could under-margin positions in certain trading strategies that involve spreads between delivery dates.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">Id.</E>
                         at n. 7 (“Similar to a stock index (
                        <E T="03">e.g.,</E>
                         SPX), a Volatility Index does not have an expiration. By contrast, there may be a variety of futures contracts with varying expiry dates on any one Volatility Index. For example, the VIX does not have an expiration date, but market participants may trade VIX futures that expire on different dates.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 85873, at 23621, 
                        <E T="03">supra</E>
                         note 5. (“[B]ecause of the term structure of the futures market, futures on a volatility index are less volatile and may have a lower probability of extreme price movements than the underlying index itself. Additionally, due to the limitations of modeling the term structure, the current model may under-margin positions in certain strategies that Clearing Members may deploy that involve spreads between delivery dates.”).
                    </P>
                </FTNT>
                <P>
                    To address these limitations, the Synthetic Futures Model generates prices and correlations using risk factors that are based on observed futures prices (
                    <E T="03">i.e.,</E>
                     the synthetic futures contract,
                    <SU>11</SU>
                    <FTREF/>
                    ) as opposed to using the underlying index itself. This allows the model to capture differences in volatility of futures across the term structure. Such differences in volatility are exhibited for futures products whose underlying deliverable is linked to a different tenor of a market observable risk factor. These risk factors are then used in the generation of Monte Carlo scenarios for the futures by using volatility and correlations obtained from the existing simulation models in STANS.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See supra</E>
                         note 6.
                    </P>
                </FTNT>
                <P>
                    OCC has since expanded use of the Synthetic Futures Model to other futures products. On July 10, 2020, OCC filed a proposed rule change to expand the use of the Synthetic Futures Model to CFE's AMERIBOR Futures.
                    <SU>12</SU>
                    <FTREF/>
                     On September 30, 2020, OCC filed another proposed rule change to further expand the use of the Synthetic Futures Model to Treasury yield index futures.
                    <SU>13</SU>
                    <FTREF/>
                     On April 29, 2021, OCC filed another proposed rule change to extend the use of the Synthetic Futures Model to futures linked to crude oil.
                    <SU>14</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 89392 (July 24, 2020), 85 FR 45938, at n. 13 (July 30, 2020) (SR-OCC-2020-007). (“AMERIBOR Futures are futures on the American Interbank Offered Rate disseminated by the American Financial Exchange, LLC, which is a transactions-based interest rate benchmark that represents market-based borrowing costs.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 90139 (Oct. 8, 2020), 85 FR 65886 (Oct. 16, 2020) (SR-OCC-2020-012).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 91833 (May 10, 2021), 86 FR 26586 (May 14, 2021) (SR-OCC-2021-005).
                    </P>
                </FTNT>
                <P>The Synthetic Futures Model would allow OCC to facilitate innovative futures products where the underlying assets are not actively traded contracts. In situations where the term structure of the futures market cannot be determined by referencing the underlying asset, this model employs risk factors derived from synthetic futures contracts to generate prices.</P>
                <HD SOURCE="HD3">Proposed Changes</HD>
                <P>
                    OCC now proposes to expand the use of the Synthetic Futures Model to additional futures products that may be listed by DCMs, provided the model is suitable for accurately representing the dynamics across the various tenors of these products. Specifically, OCC proposes revising its STANS Margins Methodology to clarify the intended scope and use of its Synthetic Futures Model to measure the risk of these futures within STANS. Under the proposed rule change, OCC also proposes removing any historical lists of in-scope products from its STANS Methodology Description of the Synthetic Futures Model. This is appropriate since some of the listed futures products no longer trade (
                    <E T="03">i.e.,</E>
                     crude oil futures), while others now use a different model (
                    <E T="03">i.e.,</E>
                     VIX futures). As outlined in the STANS Methodology Description, OCC would implement the model specifically for futures products where it is crucial to explicitly capture the dynamics of various tenors of the product. OCC believes that the Synthetic Futures Model would provide more appropriate margin coverage 
                    <SU>15</SU>
                    <FTREF/>
                     for these futures products than other models in OCC's inventory.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         OCC provided, as confidential Exhibit 3A to File No. SR-OCC-2026-006, diagnostic testing to evaluate the expected shortfall and coverage levels produced by the Synthetic Futures Model using returns derived from the underlying lead and lag indices of the futures contracts. The L/S expected shortfall coverage rates are both 99.45% for the lead index, and 98.89% and 100% for the lag index.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         For example, OCC also maintains a “Generic Futures Model,” which is a simple model based on the cost of carry. Certain futures products cannot be priced using the cost-of-carry relationship because the underlying (
                        <E T="03">i.e.,</E>
                         the index) does not trade.
                    </P>
                </FTNT>
                <P>
                    Under the existing STANS Methodology Description, the Synthetic Futures Model would be used to construct a synthetic series of futures based on the daily historical returns of the contracts with approximately the same tenor as traded futures. The traded futures contracts would be mapped to the simulated return scenarios of the corresponding synthetics to produce theoretical prices. When market data is unavailable to construct the synthetic time-series of futures, such as the launch of new products or where the underlying is untraded or not investible (
                    <E T="03">i.e.,</E>
                     the product cannot be replicated by static portfolios of traded contracts such as an index), proxy data from similar products or statistical methods would be used instead to calibrate the model parameters.
                    <SU>17</SU>
                    <FTREF/>
                     OCC would reassess the underlying assumptions and statistical method used to generate the proxy data for these futures products once three months of market data are accumulated, and quarterly thereafter. Market data will completely replace the proxy data once OCC has sufficient time series to meet the minimum data requirements for calibration and estimation under the STANS Methodology.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         For example, when OCC began to clear Small Crude Oil futures, it used proxy data constructed from similar tenor ICE WTI futures. 
                        <E T="03">See</E>
                         Exchange Act Release No. 91833, 
                        <E T="03">supra</E>
                         note 14, 86 FR at 26587 n.13. For the Lead-Lag Futures, the returns would be simulated using a statistical approach based on the assumptions that: (i) for front-month futures contracts, as times approaches the maturity, the futures price moves in tandem with and eventually converges to the price of the corresponding underlying index; and (ii) any non-front month futures may be priced by expectation of future underlying index move and a risk premium.
                    </P>
                </FTNT>
                <P>
                    Going forward, OCC's Financial Risk Management (“FRM”) Department would determine to employ the Synthetic Futures Model for futures 
                    <PRTPAGE P="45850"/>
                    products consistent with OCC's existing Model Risk Management (“MRM”) Policy,
                    <SU>18</SU>
                    <FTREF/>
                     which provides that FRM reviews new products in accordance with its Risk Methodology Development &amp; Implementation Procedure to determine whether or not a new Risk Model 
                    <SU>19</SU>
                    <FTREF/>
                     is required or if the use of an existing Risk Model is fit for purposes.
                    <SU>20</SU>
                    <FTREF/>
                     OCC believes FRM is the appropriate decisionmaker for making such model selection determinations because the Quantitative Risk Management (“QRM”) business unit within FRM is responsible for, among other things, developing Risk Models such as the Synthetic Futures Model and monitoring the use and performance of such Risk Models according to relevant procedures. The MRM Policy further provides that FRM recommends approval to the Model Risk Working Group (“MRWG”) 
                    <SU>21</SU>
                    <FTREF/>
                     subsequent to effective challenge and approval by OCC's second-line Model Risk Management business unit.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Exchange Act Release No. 82473 (Jan. 9, 2018), 83 FR 2271, 2272 (Jan. 16, 2018) (discussing the MRM Policy's section on Risk Model implementations with respect to new products). OCC has subsequently amended the MRM Policy, including, in relevant part, to update the names of relevant procedures. 
                        <E T="03">See, e.g.,</E>
                         Exchange Act Release No. 97484 (May 11, 2023), 88 FR 31549, 31551-52 (May 17, 2023) (SR-OCC-2023-004) (discussing changes associated with the Risk Methodology Development and Implementation Procedure).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         To manage credit and liquidity risk arising from its relationship with its members, OCC uses quantitative methods to make estimates, forecasts, and projections in the context of its credit risk models, margin system and related models, and liquidity risk models (each a “Risk Model”). 
                        <E T="03">See</E>
                         Exchange Act Release No. 97763 (June 20, 2023), 88 FR 41453, 41453 (June 26, 2023) (SR-OCC-2023-004).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         OCC filed its existing Model Risk Management Policy and Risk Methodology Development &amp; Implementation Procedure as confidential Exhibits 3B and 3C to File No. SR-OCC-2026-006, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         The MRWG is a cross-function working group that assists OCC's Management Committee in overseeing and governing OCC's model-related risk issues.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 82473, 
                        <E T="03">supra</E>
                         note 18, 83 FR at 2272 (discussing MRWG approval after review by OCC's Model Validation Group (“MVG”)). OCC's Model Risk Management unit was formerly known as MVG. 
                        <E T="03">See</E>
                         Exchange Act Release No.95842 (Sept. 20, 2022), 87 FR 58409, 58419 (Sept. 26, 2022) (SR-OCC-2022-010) (proposing conforming changes to OCC's risk management policies regarding the name of OCC's Model Risk Management business unit).
                    </P>
                </FTNT>
                <P>
                    Specifically, QRM reviews all new products proposed to be listed by participant exchanges, including new futures contracts proposed to be listed by DCMs for which OCC provides clearance and settlement services. As part of this review process, QRM determines whether a current model in OCC's model inventory is appropriate for the product. For example, certain models in OCC's model inventory are specific to particular types of underlying interests, such as OCC's S&amp;P 500 Implied Volatility Simulation Model.
                    <SU>23</SU>
                    <FTREF/>
                     QRM makes such model selections for new products based on the consistency of the product specifications with the application of the STANS Methodology Description and QRM's determination of the appropriateness of the model's margin treatment for the product. To the extent that any changes to the STANS Methodology Description would be required, or if clearance of the product using existing models would materially affect the nature or level of risk presented by OCC, OCC would file such changes with the Commission following approval of such changes by OCC's Risk Committee in accordance with the existing MRM Policy.
                    <SU>24</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 95319, 
                        <E T="03">supra</E>
                         note 5, 87 FR at 44168 (July 25, 2022) (SR-OCC-2022-001) (discussing STANS Methodology Description changes to implement a new model for incorporating variations in implied volatility within STANS for products based on the S&amp;P 500 Index).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         For example, following such a QRM review, OCC filed a proposed rule change to modify the STANS Methodology Description's discussion of the Variance Futures Model based on changes to the product specifications for a re-listing of CFE's variance futures product. 
                        <E T="03">See</E>
                         Exchange Act Release No. 100528 (July 15, 2024), 89 FR 58836 (July 19, 2024) (SR-OCC-2024-008).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    OCC believes the proposed rule change is consistent with Section 17A of the Exchange Act 
                    <SU>25</SU>
                    <FTREF/>
                     and Rule 17ad-22(e)(6) 
                    <SU>26</SU>
                    <FTREF/>
                     thereunder applicable to OCC. Section 17A(b)(3)(F) of the Act 
                    <SU>27</SU>
                    <FTREF/>
                     requires, in part, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions, and to assure the safeguarding of securities and funds which are in the custody or control of the clearing agency or for which it is responsible. The proposed rule change would make minor changes to OCC's Margins Methodology so that the Synthetic Futures Model can be used to model price returns for certain futures products. OCC believes the Synthetic Futures Model may provide better margin coverage for these products than other margin models maintained by OCC. OCC uses the margin it collects from a defaulting Clearing Member to protect other Clearing Members from losses and ensure that OCC is able to continue the prompt and accurate clearance and settlement of its cleared products. Moreover, OCC believes that accurate calculation of margin requirements is necessary to help OCC manage the risk of a Clearing Member default without recourse to the assets of non-defaulting Clearing Members, which supports the safeguarding of securities and funds in OCC's custody or control. OCC therefore believes that the proposed rule change is designed to promote the prompt and accurate clearance and settlement of derivative transactions in accordance with Section 17A(b)(3)(F) of the Act.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         15 U.S.C. 78q-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         17 CFR 240.17ad-22(e)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         15 U.S.C. 78q-1(b)(3)(F).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Exchange Act Rules 17ad-22(e)(6)(i), (iii), and (v) 
                    <SU>29</SU>
                    <FTREF/>
                     further require that a covered clearing agency establish, implement, maintain and enforce written policies and procedures reasonably designed to cover its credit exposures to its participants by establishing a risk-based margin system that, among other things: (1) considers, and produces margin levels commensurate with, the risks and particular attributes of each relevant product, portfolio, and market; (2) calculates margin sufficient to cover its potential future exposure to participants in the interval between the last margin collection and the close out of positions following a participant default; and (3) uses an appropriate method for measuring credit exposure that accounts for relevant product risk factors and portfolio effects across products. OCC believes that using the Synthetic Futures Model for certain futures products would produce margin levels commensurate with the risks and particular attributes of the products in question, generate margin requirements to cover OCC's potential future exposure to its participants, and appropriately consider relevant product risk factors for these futures products. In this way, OCC believes the proposed rule change is consistent with the requirements of Rules 17ad-22(e)(6)(i), (iii), and (v).
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         17 CFR 240.17ad-22(e)(6)(i), (iii), and (v).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">(B) Clearing Agency's Statement on Burden on Competition</HD>
                <P>
                    Section 17A(b)(3)(I) of the Act 
                    <SU>31</SU>
                    <FTREF/>
                     requires that the rules of a clearing agency not impose any burden on competition, not necessary or appropriate in furtherance of the purposes of the Act. OCC does not believe that the proposed rule changes would have any impact or impose a burden on competition. The Synthetic Futures Model would be used to model returns for certain futures products for all Clearing Members upon the launch of new products. OCC does not believe that the proposed rule change would 
                    <PRTPAGE P="45851"/>
                    unfairly inhibit access to OCC's services or disadvantage or favor any particular participant in relationship to another participant. Accordingly, OCC does not believe that the proposed rule change would have any impact or impose a burden on competition.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         15 U.S.C. 78q-1(b)(3)(I).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">(C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others</HD>
                <P>Written comments were not and are not intended to be solicited with respect to the proposed change and none have been 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) of the Act 
                    <SU>32</SU>
                    <FTREF/>
                     and paragraph (f) of Rule 19b-4 
                    <SU>33</SU>
                    <FTREF/>
                     thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         17 CFR 240.19b-4(f).
                    </P>
                </FTNT>
                <P>
                    The proposal shall not take effect until all regulatory actions required with respect to the proposal are completed.
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         Notwithstanding its immediate effectiveness, implementation of this rule change will be delayed until this change is deemed certified under CFTC Regulation 40.6.
                    </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-OCC-2026-006  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-OCC-2026-006. 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 such filing will be available for inspection and copying at the principal office of OCC and on OCC's website at 
                    <E T="03">https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.</E>
                     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-OCC-2026-006 and should be submitted on or before August 11, 2026.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14623 Filed 7-20-26; 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. 34-105926; File No. SR-24X-2026-21]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Limited Liability Agreement for 24X Bermuda Holdings LLC To Provide for Board Observer Roles</SUBJECT>
                <DATE>July 16, 2026.</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 July 9, 2026, 24X National Exchange LLC (“24X” or the “Exchange”) 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 self-regulatory organization. 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 limited liability agreement for 24X Bermuda Holdings LLC to provide for a board observer role at the Board of Managers of 24X Bermuda Holdings LLC for each of Rakuten Securities Holdings, Inc. and Shinhan Securities Co., Ltd. The proposed rule change is available on the Exchange's website at 
                    <E T="03">https://equities.24exchange.com/regulation</E>
                     and at the principal office of the Exchange.
                </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 self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange is filing with the Commission a proposed rule change to amend the Third Amended and Restated Limited Liability Company Agreement (the “24X Bermuda Holdco LLC Agreement”) of 24X Bermuda Holdings LLC (“24X Bermuda Holdco”) to set forth and delineate the rights, responsibilities and obligations of certain non-voting board observers with respect to meetings of the Board of Managers of 24X Bermuda Holdco (“Board Observers”) and to provide for a Board Observer role for Rakuten Securities Holdings, Inc. (“Rakuten”) and a Board Observer role for Shinhan Securities Co., Ltd. (“Shinhan”). The Exchange notes that it is not novel to allow non-voting persons to attend board meetings as observers. For example, MEMX Holdings LLC, the parent of MEMX LLC, and TXSE Group Inc., the parent of TXSE Stock Exchange LLC, allow certain shareholders to appoint non-voting board observers who may participate in its board meetings,
                    <FTREF/>
                    <SU>3</SU>
                      
                    <PRTPAGE P="45852"/>
                    BOX Exchange LLC allows observers to attend its board meetings,
                    <SU>4</SU>
                    <FTREF/>
                     and IEX Group, Inc., the parent of the Investors Exchange LLC, allows observers to attend its board meetings.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Section 8.13 of Eighth Amended and Restated LLC Agreement of MEMX Holdings LLC 
                        <PRTPAGE/>
                        (July 29, 2025), available at 
                        <E T="03">https://info.memxtrading.com/regulation/governance/;</E>
                         and Section 2 of the Seventh Amended and Restated Stockholders' Agreement of TXSE Group Inc.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Section 5.02 of the Bylaws of BOX Exchange LLC, available at 
                        <E T="03">https://boxexchange.com/assets/BOX-Exchange-Bylaws-250923.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Section 26(b) of IEX Group, Inc. Bylaws, available at 
                        <E T="03">https://cdn.prod.website-files.com/6446df2ab25baae1e88f964e/677d5737fa6fc75b2c9f23c9_Bylaws%20IEXG%20-%2003%20Dec%202024.pdf.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">a. Right To Appoint Board Observers</HD>
                <HD SOURCE="HD3">i. Rakuten</HD>
                <P>
                    On May 27, 2025, 24X US Holdings LLC (“24X US Holdco”) issued to Rakuten a convertible promissory note in exchange for certain consideration, and, on September 18, 2025, 24X US Holdco and Rakuten agreed to convert the convertible promissory note into Voting Common Units of 24X US Holdco.
                    <SU>6</SU>
                    <FTREF/>
                     In connection with this transaction, it was agreed that, provided Rakuten maintained a certain level of ownership in 24X US Holdco, Rakuten would have the right to have a board member or a board observer at 24X US Holdco, or, if 24X US Holdco did not have a board, the right to have a board observer at 24X Bermuda Holdco. 24X US Holdco currently does not have a board. Therefore, 24X Bermuda Holdco proposes to amend the 24X Bermuda LLC Agreement to include Section 3.3(l)(i)(A) to provide for a board observer role, and the Exchange is filing this proposed rule change to implement this change. Section 3.3(1)(i)(A) would read as follows:
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The amendments related to a Board Observer role for Rakuten are related to a capital raise transaction for 24X US Holdco. The transaction with Rakuten was described in a 24X rule filing to amend the limited liability agreement for 24X US Holdco to facilitate the transaction. Securities Exchange Act Rel. No. 104871 (Feb. 19, 2026), 91 FR 8937 (Feb. 24, 2026) (SR-24X-2026-04).
                    </P>
                </FTNT>
                <P>For so long as Rakuten Securities Holdings, Inc. and its Affiliates (“Rakuten”) continue to own beneficially an aggregate of at least 453,167 Voting Common Units in 24X US Holdings LLC, which number is subject to appropriate adjustment for any unit splits, unit dividends, combinations, recapitalizations and similar events (the “Rakuten Threshold”), and Rakuten does not have the right to nominate a Manager to the Board of Managers of the Company, Rakuten shall have the right, but not the obligation, to appoint one (1) observer to the Board of Managers of the Company (a “Board Observer”). If either (x) Rakuten ceases to meet the Rakuten Threshold or (y) 24X US Holdings LLC establishes a board of managers (or comparable governing body), Rakuten shall no longer have the right to appoint a Board Observer and the Board Observer appointed by Rakuten shall automatically and immediately be removed from his or her position as such.</P>
                <P>
                    Such a provision that provides a party with an ownership interest related to an exchange with the ability to act as a board observer is similar to those currently in place for parent companies of other national securities exchanges.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Section 8.13 of Eighth Amended and Restated LLC Agreement of MEMX Holdings LLC (July 29, 2025); and Section 2 of the Seventh Amended and Restated Stockholders' Agreement of TXSE Group Inc.
                    </P>
                </FTNT>
                <P>Relatedly, the Exchange proposes to add a definition of “Board Observer” as Section 1.76 of Article I of the 24X Bermuda Holdco LLC Agreement. The definition would state that the term “Board Observer” “has the meaning set forth in Section 3.3(1)(i)(A).”</P>
                <HD SOURCE="HD3">ii. Shinhan</HD>
                <P>
                    On November 24, 2025, 24X US Holdco issued to Shinhan a convertible promissory note in exchange for certain consideration, and, on April 15, 2026, 24X and Shinhan agreed to convert the convertible promissory note into Voting Common Units of 24X US Holdco.
                    <SU>8</SU>
                    <FTREF/>
                     In connection with this transaction, it was agreed that, provided Shinhan maintained a certain level of ownership in 24X US Holdco, Shinhan would have the right to have a board member or board observer at 24X US Holdco, or, if 24X US Holdco did not have a board, the right to have a board observer at 24X Bermuda Holdco. As noted above, 24X US Holdco currently does not have a board. Therefore, 24X Bermuda Holdco proposes to amend the 24X Bermuda LLC Agreement to include Section 3.3(l)(i)(B) to provide for a board observer role, and the Exchange is filing this proposed rule change to implement this change. Section 3.3(l)(i)(B) would read as follows:
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The amendments related to a Board Observer role for Shinhan are related to a capital raise transaction for 24X US Holdco. The transaction with Shinhan was described in two 24X rule filings to amend the limited liability agreement for 24X US Holdco to facilitate the transaction. Securities Exchange Act Rel. No. 105158 (Apr. 7, 2026), 91 FR 18506 (Apr. 10, 2026) (SR-24X-2026-10); Securities Exchange Act Rel. No. 105595 (Jun. 1, 2026), 91 FR 33836 (Jun. 4, 2026) (SR-24X-2026-18).
                    </P>
                </FTNT>
                <P>For so long as Shinhan Securities Co., Ltd. and its Affiliates (“Shinhan”) continue to own beneficially an aggregate of at least 420,000 Voting Common Units in 24X US Holdings LLC, which number is subject to appropriate adjustment for any unit splits, unit dividends, combinations, recapitalizations and similar events (the “Shinhan Threshold”), and Shinhan does not have the right to nominate a Manager to the Board of Managers of the Company, Shinhan shall have the right, but not the obligation, to appoint one (1) Board Observer to the Board of Managers of the Company. If either (x) Shinhan ceases to meet the Shinhan Threshold or (y) 24X US Holdings LLC establishes a board of managers (or comparable governing body), Shinhan shall no longer have the right to appoint a Board Observer and the Board Observer appointed by Shinhan shall automatically and immediately be removed from his or her position as such.</P>
                <P>
                    This provision is similar to the proposed Board Observer provisions for Rakuten. As discussed above with regard to the comparable Rakuten Board Observer provision, this provision is similar to those currently in place for parent companies of other national securities exchanges.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Section 8.13 of Eighth Amended and Restated LLC Agreement of MEMX Holdings LLC (July 29, 2025); and Section 2 of the Seventh Amended and Restated Stockholders' Agreement of TXSE Group Inc.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">b. Board Discussions</HD>
                <P>
                    The Exchange proposes to add a new paragraph (ii) to Section 3.3(l) of the 24X Bermuda LLC Agreement to address the participation of Board Observers in board discussions. This paragraph would state that “[a] Board Observer shall have the right to participate in any discussions taking place at a meeting of the Board but shall not have any rights to participate in the vote of the Board.” Such a provision regarding the participation of Board Observers in Board discussions is similar to those currently in place for parent companies of other national securities exchanges.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Section 8.13(d) of the Eighth Amended and Restated Limited Liability Company Agreement of MEMX Holdings LLC.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">c. Board Materials</HD>
                <P>The Exchange proposes to add a new paragraph (iii) to Section 3.3(l) of the 24X Bermuda LLC Agreement to address Board Observers and board materials. This paragraph would state:</P>
                <P>
                    The Company shall provide to each Board Observer copies of all notices, board materials, reports, minutes and consents at the time and in the manner as they are provided to the Managers of the Board; provided that each Board Observer shall be subject to the confidentiality obligations set forth in 
                    <PRTPAGE P="45853"/>
                    Section 12.6; and provided that no Board Observer nominated by Rakuten pursuant to paragraph (l)(i)(A) or by Shinhan pursuant to paragraph (l)(i)(B) shall have a right to participate in discussions regarding or receive materials or information regarding confidential matters not relating to 24X US Holdings LLC. Each Board Observer shall be entitled to be present in person as an observer at any meeting of the Board or, if a meeting is held by video or telephone conference, to participate therein for the purpose of listening thereto and/or participating in discussions therein; provided that no Board Observer shall be under an obligation to the Company to attend or participate in any such meeting. Notwithstanding the foregoing, no Board Observer shall be entitled to receive any information or materials or be present at a meeting of the Board (or, if applicable, a portion of the meeting of the Board) where such information or materials are discussed if, in the reasonable judgment of the Board (i) the Board Observer's having access to such information or materials would result in a waiver of any applicable legal privilege, or that (ii) disclosure of such information or materials to the Board Observer is not permitted under Applicable Law.
                </P>
                <P>
                    Such a provision regarding Board Observers and board materials is similar to those currently in place for parent companies of other national securities exchanges.
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Section 8.13(e) of the Eighth Amended and Restated Limited Liability Company Agreement of MEMX Holdings LLC.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">d. Removal of Board Observers</HD>
                <P>The Exchange proposes to add a new paragraph (iv) to Section 3.3(l) of the 24X Bermuda LLC Agreement to address the removal of Board Observers. This paragraph would state:</P>
                <P>A Board Observer may be removed from his or her position as such, or replaced at any time, with or without cause, upon, and only upon, the written request of the Person that appointed such Board Observer, as applicable; provided, that notwithstanding the foregoing, a Board Observer may be subject to a statutory disqualification (within the meaning of Section 3(a)(39) of the Exchange Act). A Board Observer who becomes subject to a statutory disqualification shall automatically and immediately be removed from the Board.</P>
                <P>
                    Such a provision regarding the removal of Board Observers is similar to those currently in place for parent companies of other national securities exchanges.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Section 8.4(a) of the Eighth Amended and Restated Limited Liability Company Agreement of MEMX Holdings LLC.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">e. Resignation of Board Observers</HD>
                <P>The Exchange also proposes to add a new paragraph (v) to Section 3.3(l) of the 24X Bermuda LLC Agreement to address the resignation of Board Observers. This paragraph would state:</P>
                <P>A Board Observer may resign at any time from his or her position as such by delivering his or her written resignation to the Board. Any such resignation shall be effective upon receipt thereof unless it is specified to be effective at some other time or upon the occurrence of some other event. The Board's acceptance of a resignation shall not be necessary to make it effective.</P>
                <P>
                    Such a provision regarding the resignation of Board Observers is similar to those currently in place for parent companies of other national securities exchanges.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Section 8.4(c) of the Eighth Amended and Restated Limited Liability Company Agreement of MEMX Holdings LLC.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Exchange Act 
                    <SU>14</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Section 6(b)(5) of the Exchange Act 
                    <SU>15</SU>
                    <FTREF/>
                     in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanisms 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) of the Exchange Act 
                    <SU>16</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange also believes that the proposed rule change would further the objectives of Section 6(b)(1) of the Act,
                    <SU>17</SU>
                    <FTREF/>
                     in particular, in that such amendments enable the Exchange to be so organized as to have the capacity to be able to carry out the purposes of the Act and to comply with the provisions of the Act, the rules and regulations thereunder, and the rules of the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         15 U.S.C. 78f.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the proposed amendments to the 24X Bermuda Holdco LLC Agreement regarding the Board Observer role are consistent with the Act. As noted above, the proposed amendment to the 24X Bermuda Holdco LLC Agreement is intended to foster clarity and transparency with respect to Board Observers for Rakuten and Shinhan attending the 24X Bermuda Holdco Board of Managers meetings, and to delineate the roles, responsibilities, and obligations of Board Observers with respect to such meetings. The proposed amendment contains detailed provisions to that effect, and also provides for instances where Board Observers' participation in a particular meeting may be limited, or disallowed, as well as exclusion of an individual subject to a statutory disqualification. The Exchange believes that the inclusion of Board Observers in Board meetings provides a valuable opportunity for other constituencies to participate in the work of the Board of Managers in a manner that safeguards the Exchange's regulatory independence and its operation as a self-regulatory organization. Rakuten and Shinhan are also bound by confidentiality agreements that they previously entered into with 24X Bermuda Holdco. The Exchange believes that the proposed amendments thereby fulfill the goals of Section 6(b) of the Exchange Act 
                    <SU>18</SU>
                    <FTREF/>
                     in that they are designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and national market system, and in general operate to protect investors and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <P>
                    Additionally, as noted above, allowing board observers to attend board meetings is not novel; as with all boards or governing bodies, the members of such board or body may decide to have certain individuals present at meetings. First, inviting board observers to board meetings is a common corporate practice for enhancing the board's access to additional useful knowledge and expertise. As a corporate matter, the Board of Managers of 24X Bermuda Holdco currently has the ability to invite individuals to attend 24X Bermuda Holdco Board meetings as non-voting board observers at its discretion, on an ad hoc basis. In addition, other exchanges have implemented similar board observer 
                    <PRTPAGE P="45854"/>
                    roles for their investors.
                    <SU>19</SU>
                    <FTREF/>
                     Thus, this proposed rule change does not raise any new or novel issues that have not already been considered by the Commission.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Section 8.13 of Eighth Amended and Restated LLC Agreement of MEMX Holdings LLC (July 29, 2025); and Section 2 of the Seventh Amended and Restated Stockholders' Agreement of TXSE Group Inc.
                    </P>
                </FTNT>
                <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 Exchange Act. The proposed amendments relate to the rights, responsibilities and obligations of Board Observers at 24X Bermuda Holdco Board meetings and, as such, are concerned solely with the corporate governance of 24X Bermuda Holdco, the Exchange's indirect parent corporation, and do not present any issues that impact competition.</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 solicited or received with respect to the proposed rule change.</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)(iii) of the Act 
                    <SU>20</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder 
                    <SU>21</SU>
                    <FTREF/>
                     in that it effects a change that: (i) does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file a proposed rule change under that subsection at least five business days prior to the date of filing, or such shorter time as designated by the Commission. The Exchange has provided such notice.
                    </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 will institute proceedings to determine whether the proposed rule change 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-24X-2026-21 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <FP>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</FP>
                <FP>
                    All submissions should refer to file number SR-24X-2026-21. 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 filing 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-24X-2026-21 and should be submitted on or before August 11, 2026.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>23</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14622 Filed 7-20-26; 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. 34-105928; File No. SR-LCH SA-2026-005]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Providing Clearing Services for Fee Grid for the Triparty Collateral Mechanism</SUBJECT>
                <DATE>July 16, 2026.</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 July 9, 2026, Banque Centrale de Compensation, which conducts business under the name LCH SA (“LCH SA”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change (“Proposed Rule Change”) described in Items I, II and III below, which Items have been primarily prepared by LCH SA. LCH SA filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and paragraph (f)(2) of Rule 19b-4 thereunder,
                    <SU>4</SU>
                    <FTREF/>
                     such that the proposed rule change was immediately effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the Proposed Rule Change from interested persons.
                </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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(2).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    LCH SA (“LCH SA”), is proposing to make certain securities eligible for transfer as initial margin through the triparty collateral mechanism 
                    <SU>5</SU>
                    <FTREF/>
                     and amend its fee grid (the “Fee Grid”) by incorporating fees for transferring those securities as initial margin through the triparty mechanism (the “Proposed Rule Change”).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         See Self-Regulatory Organizations; LCH SA; Order Approving Proposed Rule Change Relating to Triparty Collateral Mechanism; Securities Exchange Act Release No. 34-98009 (July 27, 2023); 88 FR 50923 (August 2, 2023) (File No. SR-LCH SA-2023-004).
                    </P>
                </FTNT>
                <P>
                    The text of the Proposed Rule Change has been annexed [sic] as Exhibit 5 to File No. SR-LCH SA-2026-005.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         All capitalized terms not defined herein have the same definition as in the CDS Clearing Rule Book available at 
                        <E T="03">https://www.lseg.com/content/dam/post-trade/en_us/documents/lch/rulebooks/lch-sa/lch-sa-cdsclear-rule-book.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    The implementation of the Proposed Rule Change is expected to be effective from July 10, 2026 or later, but will be 
                    <PRTPAGE P="45855"/>
                    contingent on LCH SA's receipt of all necessary regulatory approvals.
                </P>
                <HD SOURCE="HD1">II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, LCH SA 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. LCH SA 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 purpose of the Proposed Rule Change is to amend the Fee Grid for the Triparty Collateral mechanism, extending eligibility to CADES instruments, GBP-denominated UK government bonds (UKTB, UKT), and USD-denominated instruments, including U.S. T-bills and U.S. Treasury bonds, US Treasury Notes, Treasury inflation protected securities, and Treasury floating-rate notes. The instruments are already eligible to be posted (but not yet as Triparty) as collateral with LCH. The extension of Triparty eligibility to these securities is reflected in the Risk Notice through an asterisk, indicating their availability under the Triparty framework.</P>
                <P>As part of the process to further enhance its triparty collateral solution with Euroclear Bank and Euroclear France, LCH SA is proposing to amend the fees it charges clearing members for certain securities collateral posted as initial margin through the triparty collateral solution. In collaboration with Euroclear France as the CSD and Euroclear Bank as the ICSD, the triparty extension targets to enrich the commercial offering and align it with current bilateral eligibility, in line with members' evolving collateral requirements.</P>
                <P>LCH SA is proposing the following triparty fees applicable across all LCH SA business lines:</P>
                <P>• For CADES bonds deposited under Triparty the applicable fee is 14.5 bps.</P>
                <P>• For UK and US govies deposited within the triparty framework the fee will be aligned with the existing rate applied to other government securities, set at 12.5 bps.</P>
                <P>The applicable Fee Grid has been annexed as Exhibit 5. No amendments to the Rule Book or Procedures are required for these changes to become effective. Please note that LCH SA has added a reference to digital assets in the fee grid. This change is already effective in production but was not included in the previous version of the fee grid that was shared with the SEC.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    LCH SA believes that the Proposed Rule Change is consistent with the requirements of Section 17A of the Securities Exchange Act of 1934 (the “Act”) and the regulations thereunder. Section 17A(b)(3)(D) 
                    <SU>7</SU>
                    <FTREF/>
                     of the Act requires that the rules of a clearing agency provide for the equitable allocation of reasonable dues, fees, and other charges among its participants.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         15 U.S.C. 78q-1(b)(3)(D).
                    </P>
                </FTNT>
                <P>The wider offering of eligible collateral through the triparty collateral solution with the relevant proposed applicable fees will provide greater collateral optimization opportunities for LCH SA Clearing Members. The proposed fees are consistent to the current fees ensuring a gap of 1.5bps between collateral posted under triparty and collateral posted under non-triparty. LCH SA does not anticipate the Proposed Rule Change to result in any material increase in Clearing Members current fees applied and/or expenses nor result in any material changes to any business line revenue.</P>
                <P>
                    For all the reasons mentioned above, LCH SA believes that the Proposed Rule Change is consistent with the requirements of Section 17A(b)(3)(D) 
                    <SU>8</SU>
                    <FTREF/>
                     of the Act in that the amendments to the Fee Grid are reasonable and equitable among its participants.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         15 U.S.C. 78q-1(b)(3)(D).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Clearing Agency's Statement on Burden on Competition</HD>
                <P>
                    Section 17A(b)(3)(I) 
                    <SU>9</SU>
                    <FTREF/>
                     of the Act requires that the rules of a clearing agency not impose any burden on competition, not necessary or appropriate in furtherance of the purposes of the Act. LCH SA does not believe that the Proposed Rule Change would impose any burden on competition. The purpose of the Proposed Rule Change is for LCH SA to amend and adapt its Fee Grid across all Clearing Services offered to meet Clearing Members' and Clients' evolving business needs.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         15 U.S.C. 78q-1(b)(3)(I).
                    </P>
                </FTNT>
                <P>LCH SA believes the Proposed Rule Change would not burden any Clearing Members or other market participants given that the proposed amendments to the Fee Grid will apply equally to all Clearing Members and Clients in accordance with all applicable regulatory requirements. Therefore, LCH SA does not believe that the Proposed Rule Change would impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <HD SOURCE="HD2">C. Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others</HD>
                <P>Written comments relating to the Proposed Rule Change have not been solicited or received. LCH SA will notify the Commission of any written comments received by LCH SA.</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 upon filing pursuant to Section 19(b)(3)(A) 
                    <SU>10</SU>
                    <FTREF/>
                     of the Act and paragraph (f) of Rule 19b-4 
                    <SU>11</SU>
                    <FTREF/>
                     thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         17 CFR 240.19b-4(f)(2).
                    </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-regulations/self-regulatory-organization-rulemaking</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-LCH SA-2026-005 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-LCH SA-2026-005. 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 
                    <PRTPAGE P="45856"/>
                    post all comments on the Commission's internet website (
                    <E T="03">http://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking</E>
                    ). Copies of such filing will be available for inspection and copying at the principal office of LCH SA and on LCH SA's website at 
                    <E T="03">http://www.lch.com/resources/rules-and-regulations/proposed-rule-changes-0.</E>
                </FP>
                <P>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.</P>
                <P>All submissions should refer to file number SR-LCH SA-2026-005 and should be submitted on or before August 11, 2026.</P>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>12</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14624 Filed 7-20-26; 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. 34-105929; File No. SR-CBOE-2026-035]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Approving a Proposed Rule Change, as Modified and Superseded by Amendment No. 1, To Amend Rule 4.21 (Series of FLEX Options)</SUBJECT>
                <DATE>July 16, 2026.</DATE>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>
                    On April 9, 2026, Cboe Exchange, Inc. (“Exchange” or “Cboe Options”) filed with the Securities and Exchange Commission (“Commission”), 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/>
                     a proposed rule change to amend Rule 4.21 (Series of FLEX Options) with respect to cash-settlement-eligible FLEX equity options overlying exchange-traded funds. The proposed rule change was published for comment in the 
                    <E T="04">Federal Register</E>
                     on April 22, 2026.
                    <SU>3</SU>
                    <FTREF/>
                     On June 2, 2026, pursuant to Section 19(b)(2) of the Act,
                    <SU>4</SU>
                    <FTREF/>
                     the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.
                    <SU>5</SU>
                    <FTREF/>
                     On July 8, 2026, the Exchange filed Amendment No. 1 to the proposed rule change, which amended and superseded the proposed rule change in its entirety.
                    <SU>6</SU>
                    <FTREF/>
                     The Commission is publishing this Notice and Order to solicit comment on Amendment No. 1 in Sections II and III below, which sections are being published verbatim as filed by the Exchange, and to approve the proposed rule change, as modified and superseded by Amendment No. 1, on an accelerated basis.
                </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>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 105277 (Apr. 20, 2026), 91 FR 21557. The Commission received one comment on the proposed rule change, which is available on the Commission's website at 
                        <E T="03">https://www.sec.gov/rules-regulations/public-comments/sr-cboe-2026-035.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         15 U.S.C. 78s(b)(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 105600 (June 2, 2026), 91 FR 34262 (June 5, 2026). The Commission designated July 21, 2026, as the date by which the Commission shall approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Amendment No. 1 is available on the Commission's website at 
                        <E T="03">https://www.sec.gov/rules-regulations/public-comments/sr-cboe-2026-035.</E>
                         In Amendment No. 1, the Exchange proposed to heighten the eligibility thresholds for newly FLEX-eligible ETFs that would allow FLEX options overlying such ETFs to be eligible for cash-settlement based on the previous one-month period of trading, and committed to monitor the appropriateness of the proposed thresholds.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe Exchange, Inc. (“Cboe” or the “Exchange”) is filing with the Securities and Exchange Commission (“Commission” or “SEC”) a proposed rule change to amend Rule 4.21 (Series of FLEX Options). The proposed amendment relates to Flexible Exchange (“FLEX”) Equity Options where the underlying security is an exchange-traded fund (“ETF”) that is eligible for cash settlement. Specifically, the proposed amendments would: (1) permit newly FLEX-eligible ETFs that satisfy heightened eligibility thresholds of $600 million average daily notional value and 5,616,000 shares ADV, based on the previous one-month period of trading statistics to be eligible for cash settlement as a contract term; (2) establish tiered criteria governing the treatment of cash-settled FLEX ETF Options where the underlying ETF ceases to satisfy the requirements of Rule 4.21(b)(5)(A)(ii) at the time of the Exchange's bi-annual review; and (3) eliminate the existing provision limiting cash settlement as a contract term to no more than 50 underlying ETFs. 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 Commission's website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ), the Exchange's website (
                    <E T="03">https://www.cboe.com/us/options/regulation/rule_filings/cone/</E>
                    ), and at the principal office of the Exchange.
                </P>
                <HD SOURCE="HD1">III. 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>This Amendment No. 1 to SR-CBOE-2026-035 amends and replaces in its entirety the proposal as originally submitted on April 9, 2026. The Exchange submits this Amendment No. 1 in order to clarify certain points and add additional details to the proposal.</P>
                <P>The Exchange proposes to amend Rule 4.21 (Series of FLEX Options), as it relates to FLEX Equity Options where the underlying security is an ETF that is eligible for cash settlement. Specifically, the proposed amendments would: (1) permit newly FLEX-eligible ETFs that satisfy heightened eligibility thresholds of $600 million average daily notional value and 5,616,000 shares ADV, based on the previous one-month period of trading statistics to be eligible for cash settlement as a contract term; (2) establish tiered criteria governing the treatment of cash-settled FLEX ETF Options where the underlying ETF ceases to satisfy the requirements of Rule 4.21(b)(5)(A)(ii) at the time of the Exchange's bi-annual review; and (3) eliminate the existing provision limiting cash settlement as a contract term to no more than 50 underlying ETFs.</P>
                <HD SOURCE="HD3">Background</HD>
                <P>
                    Prior to the adoption of the rules described herein, FLEX Equity Options were generally required to be settled by physical delivery of the underlying security upon exercise. FLEX Index 
                    <PRTPAGE P="45857"/>
                    Options, by contrast, have long been settled by delivery in cash. Cash settlement was also available for customized equity options transacted in the over-the-counter (“OTC”) market, where settlement restrictions do not apply. The absence of a cash-settled exchange-traded alternative for equity-based FLEX Options created a gap between the exchange-traded and OTC markets that exchange-traded participants sought to bridge.
                </P>
                <P>
                    On August 1, 2023, the Exchange submitted a filing with the Commission, which became immediately effective, adopting cash settlement as an optional contract term for certain FLEX Equity Options where the underlying security is an ETF.
                    <SU>7</SU>
                    <FTREF/>
                     Specifically, Rule 4.21(b)(5)(A)(ii) permits cash settlement for FLEX Equity Options where the underlying ETF has, measured over the prior six-month period, an average daily notional value of $500 million or more and a national average daily volume (“ADV”) of at least 4,680,000 shares.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act No. 98044 (August 2, 2023) 88 FR 53548 (August 8, 2023) (SR-CBOE-2023-036) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Allow Certain Flexible Exchange Equity Options To Be Cash Settled).
                    </P>
                </FTNT>
                <P>The Exchange adopted these specific thresholds to limit cash-settled FLEX ETF Options to the most highly liquid and actively-traded ETFs, thereby mitigating concerns about susceptibility to manipulation at settlement. With respect to the notional value threshold, the Exchange determined that average daily notional value is an appropriate proxy for manipulation resistance because, as a general matter, the more expensive an underlying ETF's price, the less cost-effective manipulation becomes, and the more volume traded in an ETF, the more difficult manipulation of its price becomes. With respect to the ADV threshold, the Exchange determined that a requirement of 4,680,000 shares per day is appropriate because it represents average trading in the underlying ETF of approximately 200 shares per second, a level of continuous trading activity that the Exchange believes meaningfully limits the ability to influence the ETF's price for purposes of establishing a settlement value. The Exchange acknowledged that no security is immune from all manipulation, but determined that the combination of these two requirements would appropriately limit cash settlement of FLEX ETF Options to underlying securities that are less susceptible to manipulation.</P>
                <P>Under this framework, the Exchange conducts a bi-annual review on January 1 and July 1 of each year to identify qualifying ETFs, with newly eligible ETFs permitted to list cash-settled FLEX options beginning on February 1 and August 1, respectively. The rule caps the number of eligible underlying ETFs at 50; if more than 50 ETFs satisfy the criteria, the Exchange selects the top 50 by highest ADV. This cap was designed to prevent the scope of cash-settled FLEX ETF Options from expanding considerably without a corresponding evaluation of whether the level of the requirements remains reasonable, while still providing flexibility to add ETFs given that the initial list of eligible ETFs numbered well below 50 at the time of adoption. In the event a previously eligible ETF fails to satisfy the criteria at the time of a bi-annual review, any new positions overlying that ETF must be physically settled and any existing open cash-settled positions may be traded only to close. This provision was designed to address how to wind down outstanding cash-settled positions in an ETF that no longer qualifies under the liquidity and volume criteria, thereby addressing manipulation concerns while still permitting market participants to exit existing positions.</P>
                <P>In connection with the adoption of this framework, the Exchange committed to conducting a five-year review of cash-settled FLEX ETF Option trading activity and furnishing the Commission with five annual reports. Pursuant to this commitment, the Exchange has submitted two annual monitoring reports to the Commission covering the periods of August 1, 2023 through July 31, 2024 and August 1, 2024 through July 31, 2025, respectively. The reports assessed trading volume and open interest in cash-settled FLEX ETF options relative to physically settled options on the same underlying ETFs, market maker participation, position limit activity, and manipulation concerns. The Exchange had no recommendations for enhancements to the listing standards based on either review.</P>
                <P>In both review periods, neither the Exchange nor any affiliated Cboe securities exchange had an open investigation, inquiry, or enforcement matter relating to the manipulation of cash-settled FLEX ETF options or their underlying ETFs. Financial Industry Regulatory Authority (“FINRA”), acting as the Exchange's regulatory services provider for position limit surveillance, confirmed the same finding for both periods. While both reports note that certain regulatory matters arose during each period involving the applicable ETFs or related physically-settled options, the Exchange's surveillance and investigatory staff confirmed in each instance that the activity did not appear to relate to manipulation of an ETF for the purpose of benefiting a cash-settled FLEX ETF option position.</P>
                <P>Both review periods reflected broad and stable market maker participation across the eligible underlying ETFs. The highest levels of FLEX market maker participation were observed in SPY (9 to 12 per month), QQQ (6 to 10 per month), and IWM (3 to 15 per month). Participation in less actively traded eligible ETFs was more limited but consistent across both periods, reflecting a well-supported and liquid product across the eligible universe.</P>
                <HD SOURCE="HD3">Proposal</HD>
                <P>The Exchange proposes to amend Rule 4.21(b)(5)(A)(ii) to refine two aspects of the framework governing cash-settled FLEX ETF Options and to eliminate the 50-ETF cap. First, the Exchange proposes to permit newly FLEX-eligible ETFs to qualify for cash settlement as a contract term based on one month of trading statistics outside of the Exchange's regular bi-annual review cycle. Second, the Exchange proposes to replace the existing provision governing ETFs that cease to satisfy the eligibility criteria with a tiered framework that more precisely calibrates treatment to the actual state of open interest in cash-settled FLEX ETF Options overlying the affected ETF. Third, the Exchange proposes to eliminate the existing cap limiting cash settlement as a contract term to no more than 50 underlying ETFs.</P>
                <HD SOURCE="HD3">One-Month Lookback for Newly Eligible ETFs</HD>
                <P>
                    Under the current rule, the Exchange determines eligible underlying ETFs bi-annually, on January 1 and July 1 of each year, using six months of prior trading statistics, with newly eligible ETFs permitted to list cash-settled FLEX options beginning on February 1 and August 1, respectively. No mechanism currently exists to add newly FLEX-eligible ETFs to the eligible list between bi-annual reviews. As a result, an ETF that becomes FLEX-eligible after a bi-annual review has been conducted may not be considered for cash-settled FLEX ETF Option eligibility for up to six months, even if it otherwise satisfies the notional value and ADV requirements of Rule 4.21(b)(5)(A)(ii). The Exchange proposes to address this gap by permitting, outside of the regular bi-annual review, the Exchange to determine that a newly FLEX-eligible ETF satisfies heightened notional value and trading volume requirements of $600 million average daily notional 
                    <PRTPAGE P="45858"/>
                    value and 5,616,000 shares ADV based on the previous one-month period of trading statistics. Any ETF satisfying such requirements on that basis shall be eligible for cash settlement as a contract term.
                </P>
                <P>The Exchange believes a one-month lookback is appropriate in this context because an ETF that has newly become FLEX-eligible and simultaneously satisfies both the $600 million average daily notional value threshold and the 5,616,000-share ADV requirement over the prior month has already demonstrated the degree of liquidity and trading activity that the eligibility criteria are designed to capture. These thresholds represent a 20% increase over the standard $500 million and 4,680,000-share thresholds that apply to the bi-annual review, reflecting the Exchange's determination that heightened criteria are appropriate for ETFs seeking to qualify based on a shorter lookback period. The Exchange believes its annual monitoring reports demonstrate the existing criteria have proven to be an effective proxy for identifying ETFs that are not readily susceptible to manipulation. Requiring newly eligible ETFs to await the next bi-annual review before becoming eligible for cash settlement would delay investor access to the product.</P>
                <P>
                    The Exchange's back-testing analysis of newly listed FLEX ETFs supports the appropriateness of the heightened thresholds.
                    <SU>8</SU>
                    <FTREF/>
                     Under the standard eligibility criteria ($500 million average daily notional value and 4,680,000 shares ADV), 10 ETFs would have qualified based on one month of trading data. Under the 20% increased thresholds ($600 million average daily notional value and 5,616,000 shares ADV), only eight ETFs qualified. The two ETFs excluded by the heightened thresholds did not qualify at their next six-month bi-annual review, demonstrating that the heightened thresholds effectively filter out ETFs whose initial trading activity may not be sustained.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         For purposes of the back-testing analysis, the Exchange reviewed all newly listed FLEX-eligible ETFs from January 1, 2025 through April 6, 2026.
                    </P>
                </FTNT>
                <P>The Exchange believes the heightened thresholds for the one-month lookback appropriately address the concern that a newly listed ETF may experience elevated trading activity in its initial period that is not representative of sustained liquidity. By requiring newly eligible ETFs to satisfy thresholds that are 20% above the standard bi-annual review criteria, the Exchange ensures that only those ETFs demonstrating a meaningfully higher level of liquidity and trading activity—beyond what may reflect initial market interest—are eligible for cash settlement based on the shorter lookback period.</P>
                <P>The Exchange represents that it will continue to monitor the one-month lookback criteria on an ongoing basis to assess the appropriateness of the threshold. As part of this ongoing monitoring, the Exchange will evaluate whether the heightened criteria continue to effectively identify ETFs with sustained liquidity and trading activity, and will propose adjustments to the threshold if warranted by the Exchange's review.</P>
                <HD SOURCE="HD3">Tiered Criteria for ETFs Ceasing To Satisfy Eligibility Requirements</HD>
                <P>Under the current rule, if the Exchange determines at the time of a bi-annual review that an underlying ETF ceases to satisfy the eligibility criteria, any new position overlying that ETF must be physically settled and any existing open cash-settled positions may be traded only to close. While this provision addresses the wind-down of cash-settled activity in a straightforward manner, it does not distinguish between ETFs with active open interest and those with no meaningful cash-settled activity, nor does it account for the possibility that an ETF may temporarily fall below the eligibility thresholds and subsequently recover.</P>
                <P>The Exchange proposes to replace this provision with a tiered framework that more precisely calibrates the treatment of an ineligible ETF to the actual state of the market for cash-settled FLEX ETF Options overlying that ETF. Under the proposed framework, if no open interest in cash-settled FLEX Equity Options overlying the ETF exists during the previous six-month period at the time of the bi-annual review determination, the existing treatment will apply: any new position must be physically settled and any open cash-settled positions may be traded only to close. Where open interest in cash-settled FLEX Equity Options overlying the ETF does exist during the previous six-month period, the Exchange will permit the opening of new cash-settled positions in that ETF for a period of one year from the date of the bi-annual review, after which any new position must be physically settled and any remaining open cash-settled positions may be traded only to close. This one-year continuation period is intended to provide market participants holding or seeking to manage existing cash-settled positions with a reasonable and predictable runway to do so, rather than abruptly restricting new position activity at the time of the bi-annual review determination.</P>
                <P>The proposed framework also includes a recovery provision: if the underlying ETF satisfies the eligibility criteria at the time of either bi-annual review conducted during the one-year continuation period, that period will terminate and the ETF will resume full eligibility for cash settlement as a contract term. The Exchange believes this provision appropriately accounts for the possibility that an ETF's trading statistics may fluctuate around the eligibility thresholds and prevents an unnecessarily disruptive wind-down in cases where the ETF promptly returns to eligibility.</P>
                <HD SOURCE="HD3">Elimination of the 50-ETF Cap</HD>
                <P>
                    The Exchange also proposes to eliminate the existing provision limiting cash settlement as a contract term to no more than 50 underlying ETFs. The cap was adopted at the outset of the program to prevent the scope of cash-settled FLEX ETF Options from expanding considerably without a corresponding evaluation of whether the level of the eligibility requirements remained reasonable. While the number of ETFs satisfying the eligibility criteria remained well below 50 during the initial period of the program's operation, the number of qualifying ETFs has grown over the two-year period to exceed that threshold,
                    <SU>9</SU>
                    <FTREF/>
                     such that the cap now operates as an active constraint on the availability of cash-settled FLEX ETF Options on ETFs that otherwise satisfy the established eligibility criteria. The Exchange does not believe this result is consistent with the purpose of the cap, which was intended as a programmatic guardrail rather than a permanent numerical ceiling. As noted above, the Exchange's two annual reviews have identified no manipulation concerns. Given the same eligibility criteria and position and exercise limits would apply to any cash-settled FLEX ETF option, as would the Exchange's surveillance program, the Exchange believes the 50-ETF cap is no longer necessary. The Exchange believes these protections and the eligibility criteria themselves sufficiently mitigate any manipulation concerns associated with cash-settled FLEX ETF Options.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         As of February 1, 2026, 60 ETFs were eligible.
                    </P>
                </FTNT>
                <P>
                    The Exchange also notes that, consistent with its commitment in the original proposal, it will continue to furnish the Commission with annual reports for the remainder of the five-year review period. The Exchange believes that the continued reporting commitment, together with the proposed amendments, appropriately positions the cash-settled FLEX ETF 
                    <PRTPAGE P="45859"/>
                    Option framework to address the operational gaps identified through the Exchange's review to date while preserving the monitoring mechanisms that allow the Exchange and the Commission to evaluate the ongoing impact of the program.
                </P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with 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>10</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>11</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.
                </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)(5).
                    </P>
                </FTNT>
                <P>The Exchange believes the proposed rule change is consistent with Section 6(b)(5) of the Act because each of the proposed amendments is designed to refine an existing, Commission-approved framework in a manner that is reasonably calibrated to address identified operational gaps while preserving and reinforcing the manipulation-mitigating features of that framework.</P>
                <HD SOURCE="HD3">One-Month Lookback for Newly Eligible ETFs</HD>
                <P>
                    The Exchange believes the proposed one-month lookback for newly FLEX-eligible ETFs is consistent with the Act because it removes an impediment to the offering of cash-settled FLEX ETF Options on ETFs that have already demonstrated the liquidity and trading activity that the eligibility criteria are designed to capture, without compromising the manipulation-resistant features of those criteria. Under the current rule, an ETF that becomes FLEX-eligible 
                    <SU>12</SU>
                    <FTREF/>
                     after a bi-annual review has been conducted must wait up to six months before it may be considered for cash-settled FLEX ETF Option eligibility, even if it satisfies both the $600 million average daily notional value threshold and the 5,616,000 -share ADV requirement at the time it becomes FLEX-eligible. The Exchange believes this gap is not necessary to protect against manipulation. An ETF that satisfies both heightened thresholds over the prior one-month period has demonstrated degree of liquidity and breadth of trading activity exceeding that which the six-month bi-annual review is designed to identify as indicative of reduced susceptibility to manipulation. The heightened thresholds, which represent a 20% increase over the standard $500 million and 4,680,000-share thresholds applicable to the bi-annual review, are designed to account for the possibility that a newly listed ETF may experience elevated trading activity in its initial period that is not representative of sustained liquidity. As noted above, the Exchange's annual monitoring reports have demonstrated the existing eligibility criteria are an effective and reliable proxy for identifying ETFs that are not readily susceptible to manipulation, and the Exchange has identified no manipulation concerns in connection with cash-settled FLEX ETF Options or their underlying ETFs during that period. The Exchange therefore believes that permitting a one-month lookback for newly FLEX-eligible ETFs between bi-annual reviews, subject to the heightened thresholds, removes an impediment to and perfects the mechanism of a free and open market and protects investors and the public interest by providing timely investor access to a cash-settlement alternative on ETFs that satisfy the established eligibility criteria, while maintaining the protections afforded by those criteria.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         For example, an ETF option may become eligible to be listed on the Exchange (and FLEX eligible) on January 15, but even it satisfies the cash-settled FLEX criteria well before the next bi-annual review in July, the ETF would not be eligible for cash-settled FLEX until that July review.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         This is a similar concept to the one in Rule 4.3, Interpretation and Policy .01(b)(2) that permits “expedited” listing of options on securities with significant market capitalization at their initial public offerings.
                    </P>
                </FTNT>
                <P>The Exchange's back-testing analysis further supports the consistency of the heightened thresholds with the Act's anti-manipulation objectives. Under the standard criteria, 10 newly listed FLEX ETFs would have qualified based on one month of trading data, but under the 20% increased thresholds only 8 qualified. The two names excluded (AMDL and SIVR) did not qualify at their next six-month bi-annual review, confirming that the heightened thresholds effectively identify and exclude ETFs whose initial trading statistics do not reflect sustained market activity. The Exchange believes this empirical evidence demonstrates that the heightened thresholds are reasonably designed to prevent ETFs with potentially transient liquidity from qualifying for cash settlement based on the shorter lookback period.</P>
                <HD SOURCE="HD3">Tiered Criteria for ETFs Ceasing To Satisfy Eligibility Requirements.</HD>
                <P>The Exchange believes the proposed tiered framework for ETFs that cease to satisfy the eligibility criteria at the time of a bi-annual review is consistent with the Act because it is reasonably designed to prevent fraudulent and manipulative acts and practices while also promoting just and equitable principles of trade and protecting investors. The current rule applies a single, uniform wind-down treatment to any ETF that falls below the eligibility thresholds at bi-annual review, regardless of whether active open interest in cash-settled FLEX ETF Options overlying that ETF exists. The Exchange believes this one-size-fits-all approach does not adequately account for the legitimate interests of market participants that hold existing cash-settled positions or that need the ability to open new positions to manage existing risk exposure in an ETF that has temporarily fallen below the thresholds.</P>
                <P>
                    The proposed tiered framework addresses this concern in a manner consistent with the Act's investor protection and anti-manipulation objectives. Where no open interest in cash-settled FLEX ETF Options overlying the affected ETF has existed during the previous six-month period, the current treatment would continue to apply, because the Exchange believes an immediate restriction on new cash-settled positions would not disrupt market participants' activity. Where open interest does exist at the time of the bi-annual review, the proposed one-year continuation period provides market participants with a reasonable and predictable runway to manage existing positions, which the Exchange believes promotes just and equitable principles of trade. The Exchange further believes that the recovery provision, under which the continuation period terminates and full eligibility is restored if the ETF satisfies the criteria at either bi-annual review during the one-year period, is consistent with the Act because it prevents an unnecessarily disruptive wind-down where an ETF's trading statistics temporarily dip below the eligibility thresholds and then recover, and it reinforces the principle that the eligibility criteria, rather than arbitrary timing, are the appropriate determinant 
                    <PRTPAGE P="45860"/>
                    of cash-settlement eligibility. Taken together, the Exchange believes the tiered framework is a reasonable means to address manipulation concerns while not unduly burdening market participants with existing cash-settled positions, as it eliminates the current immediate disruption to their investment strategies.
                </P>
                <HD SOURCE="HD3">Elimination of the 50-ETF Cap</HD>
                <P>The Exchange believes the elimination of the 50-ETF cap is consistent with the Act because the cap is no longer necessary to protect against the concerns it was designed to address and, as currently operative, functions as an impediment to the offering of cash-settled FLEX ETF Options on ETFs that otherwise satisfy the established eligibility criteria. The cap was adopted at the outset of the program to prevent the scope of cash-settled FLEX ETF Options from expanding considerably without a corresponding evaluation of whether the level of the eligibility requirements remained reasonable. While the number of qualifying ETFs remained well below 50 during the initial period of the program's operation, that number has more recently grown to exceed the cap, such that the cap now actively restricts the availability of cash-settled FLEX ETF Options on ETFs that fully satisfy the notional value and ADV requirements of Rule 4.21(b)(5)(A)(ii). The Exchange believes that retaining this arbitrary restriction is inconsistent with the Act's objectives because the two-year monitoring record demonstrates that the eligibility criteria themselves limit the availability of cash settlement to FLEX ETF Options. The liquidity and trading activity requirements mitigate manipulation concerns for any ETF that satisfies those requirements, not just the top 50. During the first two years of availability of cash-settled FLEX ETF Options, the Exchange has identified (and its annual monitoring reports demonstrated) no manipulation concerns in connection with cash-settled FLEX ETF Options or their underlying ETFs. The Exchange believes the eligibility criteria, position and exercise limits, and surveillance program applicable to the 50 ETFs eligible for FLEX options with cash-settlement provide adequate protections against manipulation and market disruption to all ETFs that satisfy the criteria, regardless of the number of qualifying ETFs. The Exchange therefore believes that eliminating the cap removes an impediment to and perfects the mechanism of a free and open market, protects investors and the public interest, and is otherwise consistent with the Act.</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.</P>
                <P>The Exchange does not believe the proposed rule change will impose any burden on intramarket competition. The proposed amendments apply uniformly to all market participants that trade cash-settled FLEX ETF Options on the Exchange. All newly FLEX-eligible ETFs would be eligible for the one-month lookback, subject to the same heightened eligibility thresholds ($600 million average daily notional volume and 5,616,000 shares ADV) and any ETF that satisfies those heightened criteria within that one-month lookback would be eligible for cash-settlement, and cash-settled FLEX options on such ETFs would be available to all market participants. The tiered framework for ETFs ceasing to satisfy the eligibility criteria applies in the same manner to all market participants holding or seeking to open positions in cash-settled FLEX ETF Options overlying the affected ETF, and the one-year continuation period and recovery provision provide all such participants with the same predictable and equitable treatment. The elimination of the 50-ETF cap permits any ETF that satisfies the eligibility criteria to be eligible for FLEX cash-settlement rather than arbitrarily restricting that product availability to 50 ETFs. The Exchange believes the proposed rule promotes competition, as it would treat all ETFs that satisfy the eligibility criteria for cash-settled FLEX Options in the same manner.</P>
                <P>The Exchange does not believe the proposed rule change will impose any burden on intermarket competition. Cash-settled FLEX ETF Options with the same underlying ETF may be listed on multiple exchanges, and the proposed amendments do not restrict the ability of other exchanges to adopt similar or competing frameworks.</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">IV. Discussion and Commission Findings</HD>
                <P>
                    After careful review, the Commission finds that the proposed rule change, as modified and superseded by Amendment No. 1 (“Amended Proposal”), is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.
                    <SU>14</SU>
                    <FTREF/>
                     In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Exchange Act,
                    <SU>15</SU>
                    <FTREF/>
                     which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, 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; and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         15 U.S.C. 78f(b). In approving this proposed rule change, the Commission has considered the proposed rule change's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    The Exchange has proposed to update its program for permitting cash settlement as an optional contract term for FLEX options overlying certain highly liquid and actively traded ETFs in light of the evolution of the ETF market since the program's inception and the program's demonstrated success thus far.
                    <SU>16</SU>
                    <FTREF/>
                     These updates—namely, (i) permitting newly FLEX-Eligible ETFs to join the program if they satisfy heightened liquidity and trading criteria based on a one-month lookback, (ii) removing the now-outdated 50 ETF cap, and (iii) refining the Exchange's approach when ETFs previously included the program cease to meet the program's eligibility criteria—enhance the program while maintaining its core protections. The Exchange would continue to conduct bi-annual reviews to identify ETFs eligible for the program, would maintain the pre-existing minimum liquidity and trading criteria that must be met based on a six-month lookback, and would continue to submit annual monitoring reports to the Commission for the remainder of the required five-year period.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         Among other things, to date, the Exchange has identified no manipulation concerns in connection with the cash-settled FLEX ETF options included in the program or their underlying ETFs. 
                        <E T="03">See</E>
                         Section III, 
                        <E T="03">supra.</E>
                    </P>
                </FTNT>
                <P>
                    More specifically, each aspect of the Amended Proposal is reasonably designed to enhance the cash-settlement 
                    <PRTPAGE P="45861"/>
                    program for FLEX ETF options in a manner that is consistent with the Act. First, the proposed creation of a one-month lookback for newly FLEX-eligible ETFs with heightened liquidity and trading thresholds removes an impediment to offering cash settlement for FLEX options on highly-liquid ETFs while accounting for the possibility that a newly listed ETF may experience elevated trading activity in its initial period that is not representative of sustained liquidity.
                    <SU>17</SU>
                    <FTREF/>
                     In addition, the Exchange has committed to conduct a periodic review of the one-month lookback provision to ensure that it continues to achieve its intended purpose.
                    <SU>18</SU>
                    <FTREF/>
                     Second, the proposed tiered framework for ETFs that cease to satisfy the eligibility criteria at the time of a bi-annual review is designed to maintain the protections of the existing approach while minimizing market disruption with respect to products for which meaningful open interest remains or ineligibility for the program is only temporary. And third, the elimination of the 50-ETF cap is designed to remove a static limitation on the program that no longer serves its initially intended purpose without disturbing the program's core requirement that any FLEX-eligible ETF must meet minimum eligibility criteria before cash settlement may be offered as a contract term for FLEX options thereon.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         Notably, the Exchange states that it conducted back-testing that supports the consistency of the heightened thresholds with the Act's anti-manipulation objectives. Under the current criteria, 10 newly listed ETFs would have qualified for the program based on one month of trading data, but under the proposed heightened thresholds, only 8 would have qualified. The two ETFs that would not have qualified under the heightened thresholds also would not have qualified at their next six-month bi-annual review, which provides evidence that the heightened thresholds effectively identify and exclude ETFs whose initial trading statistics do not reflect sustained market activity. 
                        <E T="03">See</E>
                         Section III, 
                        <E T="03">supra.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Section III, 
                        <E T="03">supra.</E>
                    </P>
                </FTNT>
                <P>
                    The commenter strongly supports the proposal and expresses a view consistent with the Commission's findings above.
                    <SU>19</SU>
                    <FTREF/>
                     The commenter characterizes the Amended Proposal as an enhancement to the FLEX ETF option cash settlement program that maintains the program's strong market integrity and manipulation protections.
                    <SU>20</SU>
                    <FTREF/>
                     According to the commenter, the Amended Proposal sets forth appropriate refinements to the program that respond to the evolution of the ETF market and market participant's experience with the program.
                    <SU>21</SU>
                    <FTREF/>
                     In this vein, the commenter states that: (i) more than 50 highly liquid ETFs now satisfy the pre-existing liquidity criteria; (ii) the bi-annual review cycle creates unnecessary delays before cash settlement can be offered for newly FLEX-eligible, highly liquid ETFs; (iii) there is excessive rigidity in the existing wind-down provision for ETFs that cease to satisfy the qualifying criteria because the provision applies uniformly regardless of the existence of meaningful open interest in a position or the likelihood that a given ETF will resume satisfying the qualifying criteria; and (iv) the program, to date, has not triggered manipulation concerns, settlement-related volatility, or abusive practices.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Letter to the Commission from the Security Traders Association, dated May 13, 2026 (“STA Letter”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>For the foregoing reasons, the Amended Proposal is consistent with the Act.</P>
                <HD SOURCE="HD1">V. Solicitation of Comments on Amendment No. 1 to the Proposed Rule Change</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change, as modified by Amendment No. 1, 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-2026-035 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <FP>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</FP>
                <FP>
                    All submissions should refer to file number SR-CBOE-2026-035. 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 filing 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-2026-035 and should be submitted on or before August 11, 2026.</P>
                <HD SOURCE="HD1">VI. Accelerated Approval of Proposed Rule Change, as Modified and Superseded by Amendment No. 1</HD>
                <P>
                    The Commission finds good cause to approve the Amended Proposal prior to the thirtieth day after the date of publication of notice of filing Amendment No. 1 in the 
                    <E T="04">Federal Register</E>
                    . Amendment No. 1, without altering the purpose of the original proposal, enhances the original proposal by strengthening the one-month lookback criteria for inclusion of newly FLEX-eligible ETFs in the FLEX ETF option cash settlement program and including related analysis and representations, as explained above and set forth fully in Sections II and III above.
                </P>
                <P>
                    The Commission therefore finds that Amendment No. 1 raises no novel regulatory issues that have not previously been subject to comment and is reasonably designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, protect investors and the public interest. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act, to approve the Amended Proposal on an accelerated basis prior to the thirtieth day after publication of notice of filing of Amendment No. 1 in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD1">VII. Conclusion</HD>
                <P>
                    It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
                    <SU>23</SU>
                    <FTREF/>
                     that the proposed rule change (SR-CBOE-2026-035), as modified and superseded by Amendment No. 1, be, and hereby is, approved on an accelerated basis.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         15 U.S.C. 78f(b)(2).
                    </P>
                </FTNT>
                <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>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14625 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="45862"/>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-105925; File No. SR-FINRA-2026-016]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 4515.01 (Allocations of Orders Made by Investment Advisers)</SUBJECT>
                <DATE>July 16, 2026.</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 July 9, 2026, the Financial Industry Regulatory Authority, Inc. (“FINRA”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by FINRA. 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>FINRA is proposing to amend FINRA Rule 4515.01 (Allocations of Orders Made by Investment Advisers) to expand the current exception from the rule's principal approval requirements to apply to all allocations of bulk investment adviser orders, irrespective of when allocation instructions are received.</P>
                <P>
                    The text of the proposed rule change is available on FINRA's website at 
                    <E T="03">http://www.finra.org</E>
                     and at the principal office of FINRA.
                </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, FINRA 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. FINRA 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>
                <HD SOURCE="HD3">Background</HD>
                <P>
                    FINRA Rule 4515 (Approval and Documentation of Changes in Account Name or Designation) requires members to place the account name(s) or designation(s) on the customer order form or other similar record before an order is executed. No change in such account name(s) (including related accounts) or designation(s) (including error accounts) shall be made unless the change has been authorized by a qualified and registered principal designated by the member. The essential facts relied upon by the principal approving the change must be documented in writing and preserved in accordance with Exchange Act Rule 17a-4(b). With respect to any change that takes place prior to the execution of the trade, the required principal approval and documentation must occur prior to execution. FINRA originally adopted Rule 4515 in 2002 to address concerns about abuses such as cherry-picking, where advantageous trades are allocated to preferred customer accounts.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         NASD Rule 3110(d), the predecessor to FINRA Rule 4515, was adopted in response to a case that involved the misappropriation of customer funds. The case brought attention to operational and sales practice abuses at firms and the importance of ensuring that firms effectively monitor the activities of their employees. 
                        <E T="03">See SEC</E>
                         v. 
                        <E T="03">Gruttadauria,</E>
                         No. 1:02 CV 324, *2-*3 (N.D. Ohio January 13, 2009). In its filing, FINRA (then NASD) noted its belief that because changes in account names or designations in connection with order executions can be subject to abuse, such changes should be approved by a qualified person and the basis for the change should be adequately documented. Such abuse can include, among others, cherry-picking. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 46859 (November 20, 2002), 67 FR 70990, 70991-993 (November 27, 2002) (Notice of Filing of File No. SR-NASD-2002-162).
                    </P>
                </FTNT>
                <P>
                    Rule 4515.01 provides a limited exception to the requirements of Rule 4515 for orders from investment advisers (“IAs”) for which there is more than one customer (herein referred to as “IA bulk orders”).
                    <SU>4</SU>
                    <FTREF/>
                     Specifically, members are not required to obtain principal approval for any account name or designation changes relating to IA bulk orders provided that the member receives allocation instructions from the IA no later than the end of the trade date.
                    <SU>5</SU>
                    <FTREF/>
                     This exception applies to outside IAs and associated persons of a member who provide investment advisory services on behalf of a member acting as an IA.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         In 2010, as the NASD and NYSE rulebooks were consolidated (the “Rulebook Consolidation”), NASD Rule 3110(d) was redesignated as FINRA Rule 4515 and modified to include an exception for IA bulk orders, which was modeled after a corresponding exception in the NYSE rule. Specifically, as part of the Rulebook Consolidation, NYSE Rule Interpretation 410/02 was adopted, with certain changes, as FINRA Rule 4515.01. Rule 4515.01 expanded the NYSE rule to provide members additional time (until noon of the next business day following the trading session) to obtain specific account designations or customer names from IAs for order records, limited the exception to IA bulk orders and clarified that members must allocate orders in compliance with the IA's intent and fiduciary duty. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 63181 (October 26, 2010), 75 FR 67155, 67158 (November 1, 2010) (Notice of Filing of File No. SR-FINRA 2010-052); 
                        <E T="03">see also NYSE Information Memo 00-19,</E>
                         Timely Designation and Allocation of Account Information—Records of Orders (July 21, 2000); Retired Incorporated NYSE Rule Interpretation 410/02 (Records of Orders).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         In connection with the transition to one business day after the trade date (“T+1”) settlement, FINRA amended Rule 4515.01 to shorten the time frame by which members have to receive allocation instructions from noon of the next business day following the trading session to no later than the end of the trade date. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 99075 (December 4, 2023), 88 FR 85678, 85679 (December 8, 2023) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2023-017).
                    </P>
                </FTNT>
                <P>
                    Further, Rule 4515.01 prohibits members from knowingly facilitating the allocation of orders from IAs in a manner other than in compliance with both (1) the IA's intent at the time of trade execution to allocate shares on a percentage basis to the participating accounts; and (2) the IA's fiduciary duty with respect to allocations for such participating accounts, including but not limited to allocations based on the performance of a transaction between the time of execution and the time of allocation.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See supra</E>
                         note 4.
                    </P>
                </FTNT>
                <P>
                    Today, the allocation process is more automated than when the rule was first adopted due to advances in trade processing technology. Among other things, advances in technology over the years have generally reduced the need for manual intervention in trade processing and enabled the transaction settlement cycle to be compressed to T+1.
                    <SU>7</SU>
                    <FTREF/>
                     Many members use straight-through processing (“STP”), which refers generally to processes that allow 
                    <PRTPAGE P="45863"/>
                    for the automation of the entire trade lifecycle from trade execution through settlement without manual intervention.
                    <SU>8</SU>
                    <FTREF/>
                     Developments in STP technology have enabled members to better manage asset allocation and have generally reduced risk in the settlement process by, for example, automating allocation matching.
                    <SU>9</SU>
                    <FTREF/>
                     As the SEC observed in proposing T+1 settlement, “[i]mproved automation in the settlement process has enabled better straight-through processing and contributed to increases in affirmation rates on trade date and increases in settlement rates, with an attendant decrease in exceptions and fails.” 
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 80295 (March 22, 2017), 82 FR 15564, 15575 (March 29, 2017) (File No. S7-22-16) (“SEC T+2 Adopting Release”) (stating, “significant advancements in technology and the changes in market infrastructures and operations that have occurred since 1993, which are widely assimilated into market practices, provide a basis to accommodate shortening the standard settlement cycle to T+2.”) and Securities Exchange Act Release No. 96930 (February 15, 2023), 88 FR 13872, 13873 (March 6, 2023) (File No. S7-05-22) (“SEC T+1 Adopting Release”) (citing Securities Exchange Act Release No. 94196 (February 9, 2022), 87 FR 10436 (February 24, 2022) (“T+1 Proposing Release”). 
                        <E T="03">See also supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13873 n.9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         SEC T+2 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 15572.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         T+1 Proposing Release, 
                        <E T="03">supra</E>
                         note 7, at 10471.
                    </P>
                </FTNT>
                <P>
                    Available data suggests that for the vast majority of allocation transactions, members receive allocation instructions by the end of the trade date.
                    <SU>11</SU>
                    <FTREF/>
                     As a result, these transactions are not subject to the principal review and approval requirements under Rule 4515. In the small percentage of instances where allocation instructions are not received on trade date, principal review and approval are required under Rule 4515.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Item II.B., 
                        <E T="03">infra. See also</E>
                         Depository Trust &amp; Clearing Corporation, Our Year of Execution: Annual Report 37 (2024), 
                        <E T="03">https://www.dtcc.com/annuals/2024/files/DTCC-Annual-Report-2024-Print.pdf</E>
                         (“DTCC Annual Report”) (describing the general impact of T+1 on the industry and reporting “same-day affirmation rates on transactions surged to 95%” following the adoption of T+1).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Amendments to Rule 4515.01</HD>
                <P>
                    FINRA is proposing to amend Rule 4515.01 to expand the current exception from the rule's principal approval requirements to apply to all IA bulk orders, notwithstanding when the allocation instructions are received. Specifically, FINRA is proposing to amend Rule 4515.01 to remove the phrase “provided that members receive specific account designations or customer names from such investment advisers by no later than the end of the day on the trade date” and replace it with the phrase “without the principal approval required by this Rule.” 
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         For the avoidance of doubt, FINRA notes that the proposed rule change would apply to delivery versus payment (“DVP”) and receive versus payment (“RVP”) arrangements and to prime brokers that receive allocation instructions directly from the IA.
                    </P>
                </FTNT>
                <P>
                    FINRA believes the proposed rule change is appropriate given the technological advances and increased use of STP in trade processing since the adoption of Rule 4515. As discussed below, the proposed rule change would address the operational challenges and risks of pausing allocation processing imposed by the current rule requirement, which is of limited value in identifying the concerns it was adopted to address and does not justify the burdens it imposes. In addition, FINRA believes that the proposed rule change is reasonable in light of regulatory changes designed to facilitate the timely completion of transactions.
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13872.
                    </P>
                </FTNT>
                <P>Moreover, FINRA does not believe that the proposed rule change would give rise to investor protection concerns considering existing regulatory safeguards that would continue to apply to members and IAs.</P>
                <HD SOURCE="HD3">Operational Challenges and Limitations of the Current Rule</HD>
                <P>
                    The current requirement that members obtain principal approval where allocation instructions are received after trade date may present operational challenges and risks. While available data suggests that the overall percentage of trades with late allocation instructions is relatively small,
                    <SU>14</SU>
                    <FTREF/>
                     the actual number of trades requiring daily principal review could be substantial, particularly for firms with high trade volume. Further, obtaining the required principal approval would require pausing the transaction process, which may be particularly challenging for members using STP. If a member processes allocation instructions manually, obtaining the required approval could cause further processing delays. Delays could be particularly significant where members have limited time to process the allocations, for example, if instructions are received late in the day from the IA.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Item II.B., 
                        <E T="03">infra.</E>
                    </P>
                </FTNT>
                <P>
                    Processing delays also create the risk that customer accounts do not accurately reflect cash and securities positions. As the SEC highlighted in the SEC T+2 Adopting Release, delays in settlement may cause routine rebalancing or asset allocation changes in an investor's portfolio to become “lengthy and complicated multi-step processes.” 
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         SEC T+2 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 15572.
                    </P>
                </FTNT>
                <P>
                    FINRA believes that, in light of modern allocation processing, these operational challenges and risks outweigh the regulatory benefits of the rule. As noted above, only a small percentage of allocation instructions are received after trade date,
                    <SU>16</SU>
                    <FTREF/>
                     and in turn only a small percentage of IA bulk orders are reviewed and approved by principals today. In addition, there may be legitimate operational or technical reasons why allocation instructions are received after trade date. For example, the IA may need to obtain customer approval or set up a new customer account in connection with the allocations. Accordingly, the current rule does not necessarily target those allocations that may be at risk of abuses like cherry-picking.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Item II.B., 
                        <E T="03">infra.</E>
                    </P>
                </FTNT>
                <P>FINRA believes the proposed rule change will address these operational challenges and risks and support industry efforts to enhance processing efficiency and member compliance with T+1 settlement timelines, without diminishing investor protection.</P>
                <HD SOURCE="HD3">Regulatory Changes Since Adoption of the Rule</HD>
                <P>
                    Since the adoption of Rule 4515, there have been significant changes in the regulatory landscape that support the timely completion of transactions. In February 2023, the SEC amended Exchange Act Rule 15c6-1 to shorten the standard settlement cycle for most broker-dealer transactions from T+2 to T+1.
                    <SU>17</SU>
                    <FTREF/>
                     T+1 settlement, which became effective on May 28, 2024, was adopted to reduce credit, market and liquidity risks in securities transactions and reflects technological developments in STP.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13872.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13926, 13936.
                    </P>
                </FTNT>
                <P>
                    To facilitate compliance with T+1 settlement, the SEC also adopted Exchange Act Rule 15c6-2, which addresses same-day confirmation, allocation and affirmation requirements.
                    <SU>19</SU>
                    <FTREF/>
                     Exchange Act Rule 15c6-2(a) requires that members, “[e]nter into a written agreement with the relevant parties to ensure completion of the allocation, confirmation, affirmation, or any combination thereof, for the transaction as soon as technologically practicable and no later than the end of the day on trade date in such form as necessary to achieve settlement of the transaction” or “[e]stablish, maintain, and enforce written policies and procedures reasonably designed to ensure completion of the allocation, confirmation, affirmation, or any combination thereof, for the transaction as soon as technologically practicable and no later than the end of the day on trade date in such form as necessary to achieve settlement of the 
                    <PRTPAGE P="45864"/>
                    transaction.” 
                    <SU>20</SU>
                    <FTREF/>
                     Among other things, such policies and procedures must measure and monitor allocation rates and investigate any discrepancies in trade information.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13872; 
                        <E T="03">see also</E>
                         17 CFR 240.15c6-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 240.15c6-2(a)(1)-(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.15c6-2(b).
                    </P>
                </FTNT>
                <P>
                    The SEC has also emphasized the importance of automated processes by adopting Exchange Act Rule 17Ad-27, which requires clearing agencies providing central matching services to develop written policies and procedures that facilitate STP of securities transactions.
                    <SU>22</SU>
                    <FTREF/>
                     In adopting this rule, the SEC noted that “eliminating the use of tools that encourage or require manual processing, alongside the continued development and implementation of more efficient automated systems in the institutional trade processing environment, is essential to reducing risk and costs to ensure the prompt and accurate clearance and settlement of securities transactions, particularly in a T+1 environment.” 
                    <SU>23</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13892; 
                        <E T="03">see also</E>
                         17 CFR 240.17Ad-27.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13899.
                    </P>
                </FTNT>
                <P>FINRA believes that the current principal approval requirement in Rule 4515.01, which could introduce delays in the allocation process, does not align with recent industry efforts to enhance the efficiency of transaction processing to meet T+1 settlement standards. The proposed rule change would align Rule 4515 with the current regulatory landscape and objectives of Exchange Act Rules 15c6-2 and 17Ad-27.</P>
                <HD SOURCE="HD3">Investor Protection</HD>
                <P>FINRA does not believe that the proposed rule change would raise investor protection concerns given that allocations would continue to be subject to existing regulatory standards and review by both the SEC with respect to IAs and FINRA with respect to member broker-dealers.</P>
                <P>
                    For example, under the Investment Advisers Act of 1940 (“Advisers Act”), IAs owe their customers a fiduciary duty, comprising a duty of loyalty and duty of care.
                    <SU>24</SU>
                    <FTREF/>
                     IAs are also subject to SEC examinations, which can include reviews of allocation practices.
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         15 U.S.C. 80b-6. 
                        <E T="03">See</E>
                         Investment Advisers Act Release No. 5248 (June 5, 2019), 84 FR 33669, 33669 (July 12, 2019) (Commission Interpretation Regarding Standard of Conduct for Investment Advisers).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         SEC Division of Examinations, 
                        <E T="03">Fiscal Year 2026: Examination Priorities</E>
                         9 (November 17, 2025), 
                        <E T="03">https://www.sec.gov/files/2026-exam-priorities.pdf.</E>
                         The report notes allocation practices as a priority examination item for 2026.
                    </P>
                </FTNT>
                <P>Further, members would continue to be prohibited under Rule 4515.01 from “knowingly [facilitating] the allocation of orders from investment advisers in a manner other than in compliance with both (i) the investment adviser's intent at the time of trade execution to allocate shares on a percentage basis to the participating accounts and (ii) the investment adviser's fiduciary duty with respect to allocations for such participating accounts, including but not limited to allocations based on the performance of a transaction between the time of execution and the time of allocation.” This provision serves as an effective gatekeeping check against fraudulent allocation schemes by requiring members to decline to process an allocation they know to be inconsistent with the IA's intent or fiduciary duty. FINRA Rule 2010, which requires members to “observe high standards of commercial honor and just and equitable principles of trade,” provides additional protection against a member's facilitation of such misconduct.</P>
                <P>
                    FINRA does not believe the proposed rule change would encourage members to purposely delay the allocation process. Members must comply with T+1 settlement requirements, including the requirements of Exchange Act Rule 15c6-2(b) to have agreements or policies and procedures reasonably designed to ensure timely completion of allocations and to measure, monitor and address patterns of late allocations. For example, under Exchange Act Rule 15c6-2(b)(5), a member's written policies and procedures must “measure, monitor, and document the rates of allocations, confirmations, and affirmations completed as soon as technologically practicable and no later than the end of the day on trade date.” 
                    <SU>26</SU>
                    <FTREF/>
                     In addition, as a general matter, delays run counter to member and customer interests to promptly settle transactions and can cause settlement risk and operational inefficiencies, among other things.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         17 CFR 240.15c6-2(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         SEC T+1 Adopting Release, 
                        <E T="03">supra</E>
                         note 7, at 13929-13931.
                    </P>
                </FTNT>
                <P>Additionally, FINRA Rule 3110 requires members to maintain policies and procedures reasonably designed to achieve compliance with applicable securities laws and regulations, including the requirements under FINRA Rule 4515.01 and Exchange Act Rule 15c6-2 described above.</P>
                <P>In sum, FINRA believes the proposed rule change recognizes modern technologies, addresses operational challenges and is reasonable in light of changes to the regulatory landscape, while maintaining investor protection and supporting timely and efficient allocation processing.</P>
                <P>
                    If the Commission approves the proposed rule change, FINRA will announce the effective date of the proposed rule change in a 
                    <E T="03">Regulatory Notice.</E>
                </P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Exchange Act,
                    <SU>28</SU>
                    <FTREF/>
                     which requires, among other things, that FINRA rules 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, and, in general, to protect investors and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         15 U.S.C. 78
                        <E T="03">o</E>
                        -3(b)(6).
                    </P>
                </FTNT>
                <P>The proposed rule change is consistent with the Exchange Act because it eliminates operational burdens that can delay timely allocation processing and the attendant risks, while preserving investor protection safeguards. Specifically, the proposed rule change would facilitate timely transaction processing and support T+1 settlement compliance by enabling members to complete IA bulk orders without principal review and approval, regardless of when allocation instructions are received. The proposed rule change also maintains investor protection by preserving existing safeguards. For example, IAs are subject to fiduciary duties under the Advisers Act and members will remain subject to Rule 4515.01's prohibition on knowingly facilitating improper allocations, as well as Rules 2010 and 3110.</P>
                <P>Finally, the proposed rule change is consistent with FINRA's ongoing efforts to ensure its rules remain efficient and effective in light of technological advances and regulatory changes. FINRA believes that the proposed rule change promotes just and equitable principles of trade and protects investors and the public interest by eliminating a requirement with limited regulatory benefits given current industry practices while preserving sufficient investor protections.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act.
                    <PRTPAGE P="45865"/>
                </P>
                <HD SOURCE="HD3">Economic Impact Assessment</HD>
                <P>FINRA has undertaken an economic impact assessment to analyze the regulatory need for the proposed rule change, its potential economic impacts, including anticipated costs, benefits, and distributional and competitive effects, relative to the current baseline, and the alternatives FINRA considered in assessing how best to meet FINRA's regulatory objectives.</P>
                <HD SOURCE="HD3">Regulatory Need</HD>
                <P>Rule 4515 currently requires principal approval for all changes to account names or designations, with a narrow exception for IA bulk orders when allocation instructions are received by trade date. FINRA proposes to eliminate the principal approval requirement for all IA bulk orders, regardless of when allocation instructions arrive. The proposed rule change addresses operational challenges created by the current requirement, which disrupts STP workflows and increases settlement delay risks under the T+1 settlement cycle. The proposed rule change would enable members to maintain automated STP workflows while supporting timely transaction processing.</P>
                <HD SOURCE="HD3">Economic Baseline</HD>
                <P>
                    Identifying the baseline for this analysis is constrained by data limitations. During recent FINRA reviews of three members, the members reported same-day allocation rates exceeding 98 percent, indicating that late allocations of IA bulk orders represented less than two percent of their activity for the review period. A broader review of Consolidated Audit Trail (“CAT”) equity allocation data covering November 1, 2024 through October 31, 2025 revealed that approximately 1.5 percent of allocations by trade count (representing 3.5 percent by dollar volume) occur after the trade date. Moreover, FINRA's analysis of CAT data suggests that same day allocation rates have been increasing, both leading up to and since the implementation of T+1 settlement.
                    <SU>29</SU>
                    <FTREF/>
                     However, because CAT data does not distinguish between IA bulk orders and other allocation types, these statistics may have limited applicability to this analysis. Additionally, a Depository Trust &amp; Clearing Corporation (“DTCC”) report covering the three-week period following the implementation of T+1 settlement suggests that approximately 98-99 percent of all allocations are completed on the trade date.
                    <SU>30</SU>
                    <FTREF/>
                     However, since not all allocations are processed through DTCC, the value of these statistics is similarly limited.
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         The percentage of allocations occurring after the trade day declined from 2.3 percent two years before the T+1 implementation to 1.7 percent one year before, and further to 1.6 percent in the year following the implementation.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         DTCC, Daily Reporting Metrics (June 2024), 
                        <E T="03">https://www.dtcc.com/-/media/Files/PDFs/T2/SIFMA-UST1-Daily-Reporting-Metrics-Template-GC.pdf.</E>
                         Furthermore, the DTCC Annual Report states that industry affirmation rates improved to nearly 96 percent following T+1 settlement compared to 84.5 percent in the pre-T+1 period, consistent with improvements in same day allocation statistics from CAT data. 
                        <E T="03">See</E>
                         DTCC Annual Report, 
                        <E T="03">supra</E>
                         note 11, at 19.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Economic Impacts</HD>
                <P>The proposed rule change would directly impact members that accept late allocation instructions, IAs that issue late allocation instructions and investors who execute trades through IAs.</P>
                <HD SOURCE="HD3">Potential Benefits</HD>
                <P>The existing principal approval requirement for changes in IA bulk order allocations that occur after the trade date may create significant operational disruptions and delays by inserting a manual step into predominantly automated workflows. Removing this requirement would enable members to maintain STP for IA allocations and preserve associated operational efficiencies.</P>
                <P>Disruptions in STP increase the risk of delayed settlement, particularly within the timelines of the T+1 settlement cycle. By avoiding such disruptions, the proposed rule change would help mitigate the risk of delayed settlement. This approach would enable members to better meet IA client expectations regarding allocation trades and associated operational timelines.</P>
                <HD SOURCE="HD3">Potential Costs</HD>
                <P>
                    One potential concern is increased opportunity for misconduct such as cherry-picking. The current rule's principal approval requirement is intended to safeguard against such practices. However, as discussed above, it appears the vast majority of IA allocation instructions already receive no principal review because they arrive on the trade date.
                    <SU>31</SU>
                    <FTREF/>
                     Moreover, principals reviewing post-trade-date allocations would see sub-account allocations for the first time without a benchmark to identify potential abuses, such as cherry-picking, and must evaluate each instruction in isolation without the ability to assess long-term patterns.
                    <SU>32</SU>
                    <FTREF/>
                     Therefore, FINRA believes the efficacy of the principal approval approach as a safeguard against cherry-picking may be limited, and the regulatory cost of its removal may be similarly limited.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         DTCC Annual Report, 
                        <E T="03">supra</E>
                         note 11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         Principals would likely need to analyze IA behavior over a longer period to statistically identify consistent patterns indicative of cherry-picking.
                    </P>
                </FTNT>
                <P>Importantly, other regulatory safeguards remain in place, as discussed above. FINRA believes that potential concerns about increased opportunity for misconduct will be mitigated by these other remaining safeguards.</P>
                <HD SOURCE="HD3">Competitive Effects</HD>
                <P>FINRA has considered the potential competitive effects the proposed rule change may have on members. While members operate under different business models—some requiring allocation instructions from IAs at the time of the block order and others permitting later submission—FINRA does not believe that the current principal approval requirement is likely to influence members' choice of operational model. By removing this requirement, the proposed rule change may enhance competitive flexibility, enabling members to compete on operational efficiency and service quality. Because the proposed rule change applies equally to all members, FINRA does not believe it would create competitive disadvantages among members.</P>
                <HD SOURCE="HD3">Alternatives Considered</HD>
                <P>FINRA considered an alternative approach in which the principal approval process would remain in place but occur post-allocation if allocation instructions were not received by the end of the trade day. Under this alternative, because principal oversight would occur post-allocation, the trade may need to be reversed, creating significant costs for members. Given the potential for substantial new costs and the lack of economically significant benefits from the principal review process, FINRA believes that eliminating the principal approval requirement represents the most efficient path to addressing the operational challenges created by the current requirement while maintaining investor protections through alternative safeguards.</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>
                    Written comments were neither solicited nor received.
                    <PRTPAGE P="45866"/>
                </P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    Within 45 days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will:
                </P>
                <P>(A) by order approve or disapprove such proposed rule change, or</P>
                <P>(B) institute proceedings to determine whether the proposed rule change should be 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-FINRA-2026-016  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-FINRA-2026-016. 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 filing will be available for inspection and copying at the principal office of FINRA. 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-FINRA-2026-016 and should be submitted on or before August 11, 2026.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>33</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14621 Filed 7-20-26; 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. 34-105924; File No. SR-TXSE-2026-011]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Texas Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt the Initial Schedule of Fees and Rebates Applicable to Members of the Exchange and Adopt a Monthly Membership Fee</SUBJECT>
                <DATE>July 16, 2026.</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 July 7, 2026, Texas Stock Exchange LLC (the “Exchange” or “TXSE”) filed with the Securities and Exchange Commission (“SEC” or “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 is filing with the Securities and Exchange Commission (“Commission”) a proposed rule change to adopt the initial schedule of fees and rebates applicable to Members of the Exchange pursuant to Exchange Rule 15.110 (Authority to Prescribe Dues, Fees, Assessments and Other Charges) and adopt a monthly membership fee on the Texas Stock Exchange LLC (the “Exchange” or “TXSE”). The Exchange proposes to implement the rule change upon commencement of its operations as a national securities exchange.</P>
                <P>
                    The text of the proposed rule change is available on the Commission's website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ) at the Exchange's website (
                    <E T="03">https://www.txse.com/regulations/rules-filings</E>
                    ), and at the principal office of the Exchange.
                </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 parts 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 adopt a fee schedule (the “Fee Schedule”) applicable to the use of the Exchange. The Exchange will commence operations as a national securities exchange on July 10, 2025, and will implement the Fee Schedule as of that date.</P>
                <P>
                    The Exchange first notes that upon commencement of operations as a national securities exchange, it will operate in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. More specifically, the Exchange will be only one of numerous equities venues to which market participants may direct their order flow. Based on publicly available information, no single registered equities exchange currently has more than approximately 16% of total monthly market share.
                    <SU>3</SU>
                    <FTREF/>
                     Thus, in such a low-concentrated and highly competitive market, no single equities exchange possesses significant pricing power in the execution of order flow and the Exchange currently represents a small percentage of the overall market.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Market share percentage calculated as of June 25, 2026; see Cboe Global Markets, U.S. Equities Market Volume Summary, available at: 
                        <E T="03">https://www.cboe.com/us/equities/market_share/.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Transaction Fees</HD>
                <P>
                    Below is a description of the fees and rebates that the Exchange intends to impose under the initial proposed Fee Schedule, which will be applicable to transactions executed in all trading sessions. The Exchange does not initially propose to assess volume-based fees or rebates. Accordingly, all fees and rebates described below are applicable 
                    <PRTPAGE P="45867"/>
                    to all Members, regardless of the overall volume of a Member's trading activities on the Exchange.
                </P>
                <P>The Exchange proposes to adopt a pricing strategy that incentivizes adding displayed liquidity on the Exchange in order to encourage and facilitate price discovery and price formation, which the Exchange believes benefits all Members and investors. Details of this pricing strategy are laid out below:</P>
                <HD SOURCE="HD3">1. Standard Fee for Removing Displayed Liquidity</HD>
                <P>
                    The Exchange proposes a fee of $0.0030 per share for executions of orders that (i) are displayed on the TXSE Book 
                    <SU>4</SU>
                    <FTREF/>
                     and (ii) remove liquidity from the Exchange (“Remove Liquidity”), in securities priced at or above $1.00 per share or 0.15% of the total dollar value (“TDV”) for securities priced under $1.00.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         “TXSE Book” means the System's electronic file of orders. See Exchange Rule 1.005(ff). The “System” shall mean the electronic communications and trading facility designated by the Board through which securities orders of Users are consolidated for ranking and execution. See Exchange Rule 1.1005(ff).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         This pricing is referred to as “Remove displayed liquidity” on the proposed Fee Schedule.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Standard Rebate for Adding Displayed Liquidity</HD>
                <P>
                    The Exchange proposes to provide a rebate of $0.0031 per share for executions of orders that: (i) are displayed on the TXSE Book and (ii) add liquidity to the Exchange (“Added Displayed Liquidity”), in all securities traded on the Exchange priced at or above $1.00 per share or 0.15% of the TDV for securities priced under $1.00.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The pricing is referred to by the Exchange as “Add displayed liquidity” on the proposed Fee Schedule.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">3. Standard Fee for Adding or Removing Non-Displayed Liquidity</HD>
                <P>
                    The Exchange proposes a fee of $0.0002 per share for executions of orders that (i) are not displayed on the TXSE Book and (ii) add or remove liquidity from the Exchange, in securities priced at or above $1.00 per share or 0.05% of the total dollar value (“TDV”) for securities priced under $1.00.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         This pricing is referred to by the Exchange “Add non-displayed liquidity” and “Remove non-displayed liquidity” on the proposed Fee Schedule to represent the execution of an order that adds non-displayed liquidity.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Annual Membership Fee</HD>
                <P>
                    The Exchange is proposing to establish a monthly membership fee for Members of the Exchange of $200 (“Monthly Membership Fee”) that will be assessed beginning January 1, 2027. The Monthly Membership Fee is proposed to be assessed to each active Member on the first day of each month. For example, the Monthly Membership Fee for January 2027 will be assessed to all active Members at the close of business on January 1, 2027, the first business day of the month. However, if a Member is pending a voluntary termination of rights as a Member pursuant to TXSE Rule 2.008 prior to the time any Monthly Membership Fee will be assessed and the Member does not utilize the facilities of the Exchange while such voluntary termination of rights is pending, then the Member will not be obligated to pay the Monthly Membership Fee, as such Member will not be considered to have an “active” Membership. The Exchange believes this to be appropriate because there are several pre-conditions and then a 30-day waiting period before a voluntary resignation shall take effect pursuant to TXSE Rule 2.008. As proposed, the Monthly Membership Fee will not be prorated, which the Exchange believes is reasonable based on the frequency that the fee is assessed (
                    <E T="03">i.e.,</E>
                     monthly instead of applying to a longer period) and the relatively low proposed fee of $200. The Exchange does not presently contemplate proposing any application fees, trading rights or trading permit fees, market participant identifier (“MPID”) fees or so-called “headcount” fees.
                </P>
                <HD SOURCE="HD3">Other Changes</HD>
                <P>The Exchange also proposes to add two additional sections to the proposed Fee Schedule entitled “Definitions” and “Additional Fees.” The proposed Definitions section would set forth defined terms used throughout the Fee Schedule to promote clarity and facilitate market participants' understanding of the Exchange's pricing. The proposed Additional Fees section would state that Chapter 15 of the Exchange Rules contains other dues, fees, assessments, and provisions governing the collection of Exchange fees. For completeness and ease of reference, the proposed Fee Schedule would include a high-level summary of certain sections described in Chapter 15. The summary is intended solely as a convenience for market participants to facilitate review of the Exchange's pricing and fee structure and would not modify, replace, or supersede the applicable provisions of Chapter 15, which would continue to govern the assessment and collection of such fees.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed fees and rebates are consistent with the objectives of Section 6(b)(5) of the Act 
                    <SU>8</SU>
                    <FTREF/>
                     in that they are designed 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 national market system, and, in general, to protect investors and the public interest, and, particularly, are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                    <SU>9</SU>
                    <FTREF/>
                     in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its Members and other persons using its facilities.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         15 U.S.C. 78f(b)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         15 U.S.C. 78f(b)(4).
                    </P>
                </FTNT>
                <P>
                    Upon its commencement of operations as a national securities exchange, the Exchange will operate in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. The Exchange believes that the proposed Fee Schedule reflects a simple and competitive pricing structure designed to incentivize market participants to add aggressively priced displayed liquidity and direct their order flow to the Exchange, which the Exchange believes would promote price discovery and price formation and deepen liquidity that is subject to the Exchange's transparency, regulation, and oversight as an exchange, thereby enhancing market quality to the benefit of all Members and investors. The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, while adopting a series of steps to improve the current market model, the Commission highlighted the importance of market forces in determining prices and SRO revenues, and also recognized that current regulation of the market system “has been remarkably successful in promoting market competition in its 
                    <PRTPAGE P="45868"/>
                    broader forms that are most important to investors and listed companies.” 
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (“Regulation NMS Adopting Release”).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Transactions Fees</HD>
                <P>The Exchange believes that charging a fee to the liquidity remover, and providing a rebate to the liquidity adder, is reasonable, equitable and not unfairly discriminatory because it incentivizes liquidity provision on the Exchange. The Exchange also notes that several other exchanges charge fees for removing liquidity and provide rebates for adding liquidity, and that this aspect of the Exchange's proposed Fee Schedule does not raise any new or novel issues that have not previously been considered by the Commission in connection with the fees and rebates of other exchanges. The Exchange notes that unlike other exchanges, TXSE is not proposing any volume based tiers or rebates and rather is proposing a simple flat fee for each of the categories listed below.</P>
                <P>The Exchange also believes that it is reasonable, equitable and not unfairly discriminatory to provide a rebate for executions resulting from adding displayed liquidity compared to a fee for executions of adding non-displayed liquidity as this structure is designed to incentivize Members to send the Exchange displayable orders, thereby contributing to price discovery and price formation, consistent with the overall goal of enhancing market quality. Moreover, the Exchange notes that there are precedents for exchanges to provide rebates that distinguish between displayed and non-displayed volume to incentivize displayed orders and facilitate price discovery.</P>
                <HD SOURCE="HD3">Standard Fee for Removing Liquidity</HD>
                <P>
                    The Exchange believes that it is appropriate, reasonable, and consistent with the Act to charge a standard fee of $0.0030 per share for executions of orders that remove liquidity from the TXSE Book in securities priced at or above $1.00 per share or 0.15% of the TDV for securities priced under $1.00 because it is comparable to the transaction fee charged by another exchange to remove liquidity.
                    <SU>11</SU>
                    <FTREF/>
                     The Exchange further believes that this fee is equitably allocated and not unfairly discriminatory because it applies equally to all Members and, when coupled with higher rebates for adding displayed liquidity, as described below, is designed to facilitate increased activity on the Exchange to the benefit of all Members by providing more trading opportunities and promoting price discovery.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         For example, the MEMX Fee Schedule assess fees to remove liquidity for securities at or above $1.00 that range from $0.0029-$0.0030 per share (fees for securities below $1.00 the fees are 0.28% of total dollar value); see 
                        <E T="03">https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Standard Rebate for Adding Displayed Liquidity</HD>
                <P>
                    The Exchange believes that it is appropriate, reasonable, and consistent with the Act to provide a standard rebate of $0.0031 per share for executions of orders that: (i) are displayed on the TXSE Book and (ii) add liquidity to the Exchange, in all securities traded on the Exchange priced at or above $1.00 per share or 0.15% of the TDV for securities priced under $1.00 because this rebate is consistent with transaction rebates provided by other exchanges.
                    <SU>12</SU>
                    <FTREF/>
                     The Exchange further believes that this rebate structure is equitably allocated and not unfairly discriminatory because it applies equally to all Members.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The MEMX Fee Schedule reflects rebates for “adding” displayed liquidity that range from $0.0015 to $0.0037 for shares executed at or above $1.00, with 0.15% of total dollar value for shares executed below $1.00, see 
                        <E T="03">https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Standard Fee for Adding and Removing Non-Displayed Liquidity</HD>
                <P>
                    The Exchange believes that it is appropriate, reasonable, and consistent with the Act to provide a standard fee of $0.0002 per share for executions of orders that: (i) are not displayed on the TXSE Book and (ii) either add or remove liquidity to the Exchange, in all securities traded on the Exchange priced at or above $1.00 per share or 0.05% of the TDV for securities priced under $1.00 because this fee is consistent with transaction fees provided by other exchanges.
                    <SU>13</SU>
                    <FTREF/>
                     The Exchange further believes that this fee structure is equitably allocated and not unfairly discriminatory because it applies equally to all Members.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         The IEX Fee Schedule reflects a fee for “adding” non-displayed liquidity of $0.0010 for shares executed at or above $1.00, with 0.05% of total dollar value for shares executed below $1.00, see 
                        <E T="03">https://www.iex.io/resources/trading/fee-schedule?utm_source=chatgpt.com#transaction-fees.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Membership Fee</HD>
                <P>
                    The Exchange believes that there is value in becoming a Member of the Exchange and that the proposed Monthly Membership Fee is reasonable. The Monthly Membership Fee is lower than 
                    <SU>14</SU>
                    <FTREF/>
                     or identical to 
                    <SU>15</SU>
                    <FTREF/>
                     the membership fees imposed by several other national securities exchanges that charge such fees. Moreover, insofar as the Exchange does not charge—nor does it presently contemplate charging—application fees, trading rights fees, trading permit fees, or fees for multiple MPIDs, the comparative price of membership is less or significantly less than comparative prices at other exchanges. The Exchange also does not charge—nor does it presently contemplate charging—so-called “headcount fees,” 
                    <E T="03">e.g.,</E>
                     fees charged for each Form U-4 filed for registration of a representative or a principal or the transfer or re-licensing of such personnel, further highlighting the reasonableness of the proposed Monthly Membership Fee.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         For example, NYSE Arca, Inc. charges Equity Trading Permit Holders an annual fee of $15,000 (see NYSE Arca Equities Fees and Charges, effective July 1, 2025, available at: 
                        <E T="03">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</E>
                        ); Long Term Stock Exchange, Inc. charges an annual membership fee of $10,000; (see Long Term Stock Exchange, Inc. fee schedule, available at: 
                        <E T="03">https://ltse.com/trading/fee-schedules</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         See MEMX LLC membership fees, available at: 
                        <E T="03">https://info.memxtrading.com/membership-fees/.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes that the proposed Monthly Membership Fee is not unfairly discriminatory because it would be assessed equally across all Members or market participants that seek to become Members, and because no market participant is required to become a member of the Exchange. Instead, many market participants are expected to wait until the Exchange consistently achieves a certain percentage of market share before they would join as Members of the Exchange.</P>
                <P>
                    Accordingly, the vigorous competition among national securities exchanges provides many alternatives for market participants to voluntarily decide whether membership to the Exchange is appropriate and worthwhile, and no broker-dealer is required to become a member of the Exchange. Specifically, neither the trade-through requirements under Regulation NMS nor broker-dealers' best execution obligations require a broker-dealer to become a member of every exchange. The Exchange acknowledges that competitive forces may require certain broker dealers to be members of all equities exchanges. However, the Exchange believes that the proposed fee of $200 as a Monthly Membership Fee is reasonable, equitably allocated, and not unfairly discriminatory, even for a broker-dealer that deemed it necessary to join the Exchange for business purposes, as those business reasons should presumably result in revenue capable of covering the proposed fee.
                    <PRTPAGE P="45869"/>
                </P>
                <P>The Exchange further believes that the proposed fees would be an equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities, and are not unfairly discriminatory. As the Commission noted in its Concept Release Concerning Self-Regulation:</P>
                <EXTRACT>
                    <P>
                        The Commission to date has not issued detailed rules specifying proper funding levels of [self-regulatory organization (“SRO”)] regulatory programs, or how costs should be allocated among the various SRO constituencies. Rather, the Commission has examined the SROs to determine whether they are complying with their statutory responsibilities. This approach was developed in response to the diverse characteristics and roles of the various SROs and the markets they operate. The mechanics of SRO funding, including the amount of revenue that is spent on regulation and how that amount is allocated among various regulatory operations, is related to the type of market that an SRO is operating. Thus, each SRO and its financial structure is, to a certain extent, unique. While this uniqueness can result in different levels of SRO funding across markets, it also is a reflection of one of the primary underpinnings of the National Market System. Specifically, by fostering an environment in which diverse markets with diverse business models compete within a unified National Market System, investors and market participants benefit.
                        <SU>16</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             Securities Exchange Act Release No. 34-50700 (November 22, 2004), 69 FR 71255, 71267-68 (December 8, 2004) (File No. S7-40-04).
                        </P>
                    </FTNT>
                </EXTRACT>
                <HD SOURCE="HD3">Additional Changes</HD>
                <P>Lastly, the Exchange believes the additional changes are reasonable, equitable and not unfairly discriminatory. In particular, the Exchange believes that the proposed changes will provide greater clarity to market participants when looking at either the Fee Schedule or Chapter 15 of the TXSE Rulebook. This proposed change does not propose any substantive changes fees charged by the Exchange. Therefore, the Exchange does not believe that the proposed change raises any new or novel issues not already considered by the Commission.</P>
                <P>In conclusion, the Exchange submits that its proposed fee structure satisfies the requirements of Sections 6(b)(4) and 6(b)(5) of the Act for the reasons discussed above in that it provides for the equitable allocation of reasonable dues, fees, and other charges among its Members and other persons using its facilities, does not permit unfair discrimination between customers, issuers, brokers, or dealers, and is designed to promote just and equitable principles of trade, 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, particularly as the proposal neither targets nor will it have a disparate impact on any particular category of market participant. As described more fully below in the Exchange's statement regarding the burden on competition, the Exchange believes that it is subject to significant competitive forces, and that its proposed fee and rebate structure is an appropriate effort to address such forces. Finally, effective regulation is central to the proper functioning of the securities markets. Recognizing the importance of such efforts, Congress decided to require national securities exchanges to register with the Commission as self-regulatory organizations to carry out the purposes of the Act. The Exchange therefore believes that it is critical to ensure that regulation is appropriately funded. The Monthly Membership Fee is expected to provide a source of funding towards the Exchange's costs related to onboarding Members and providing ongoing support.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    Section 6(b)(8) of the Act 
                    <SU>17</SU>
                    <FTREF/>
                     requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Rather, as discussed above, the Exchange believes that the proposed change would encourage the submission of additional order flow to a public exchange, thereby promoting market depth, execution incentives, and enhanced execution opportunities, as well as price discovery and transparency for all Members. As a result, the Exchange believes that the proposed change furthers the Commission's goal in adopting Regulation NMS of fostering competition among orders, which promotes “more efficient pricing of individual stocks for all types of orders, large and small.” 
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         15 U.S.C. 78f(b)(8).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         Regulation NMS Adopting Release at 37499.
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the Exchange believes that the proposed pricing structure will increase competition and is intended to draw volume to the Exchange as it commences operations. The Exchange believes that the ever-shifting market share among the exchanges from month to month demonstrates that market participants can shift order flow or reduce use of certain categories of products in response to new or different pricing structures being introduced into the market. Accordingly, competitive forces constrain the Exchange's transaction fees and rebates, and market participants can readily trade on competing venues if they deem pricing levels at those other venues to be more favorable. Although this pricing is intended to attract liquidity to the Exchange, most other exchanges in operation today already offer multiple incentives to their participants, including tiered pricing that provides higher rebates or discounted executions, and other exchanges will be able to modify such incentives in order to compete with the Exchange. Accordingly, with respect to a participant deciding to either submit an order to add liquidity or seeking to remove liquidity, there are multiple exchanges that will continue to be competitively priced for such orders when compared to the Exchange's pricing. Further, while pricing incentives can cause shifts of liquidity between trading centers, market participants make determinations on where to provide liquidity or route orders to take liquidity based on factors other than pricing, including execution quality, technology, functionality, and other considerations. Consequently, the Exchange believes that the degree to which its fees and rebates could impose any burden on competition is extremely limited and does not believe that such fees would burden competition of Members or competing venues in a manner that is not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <P>
                    The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed fees and rebates apply equally to all Members. The proposed pricing structure is intended to encourage market participants to add displayed and non-displayed liquidity to the Exchange by providing rebates that are comparable to those offered by other exchanges as well as to provide a competitive rate charged for removing liquidity, which the Exchange believes will help to encourage Members to send orders to the Exchange to the benefit of all Exchange participants. As the 
                    <PRTPAGE P="45870"/>
                    proposed rates are equally applicable to all market participants, the Exchange does not believe there is any burden on intramarket competition.
                </P>
                <P>
                    Lastly, the Exchange believes that the proposed membership fees would not impose any burden on intermarket or intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed membership fees will be lower than the cost of membership on other exchanges,
                    <SU>19</SU>
                    <FTREF/>
                     and therefore, may stimulate intramarket competition by attracting additional market participants to become Members on the Exchange, or at least should not deter interested participants from joining the Exchange. In addition, membership fees are subject to competition from other exchanges. Accordingly, if the changes proposed herein are unattractive to market participants, it is likely the Exchange will see a decline in membership as a result. The proposed fee change will not impact intermarket competition because it will apply to all Members equally. The Exchange operates in a highly competitive market in which market participants can determine whether or not to join the Exchange based on the value received compared to the cost of joining and maintaining membership on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See supra</E>
                         notes 14 and 15.
                    </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>The Exchange has neither solicited nor received written 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>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act 
                    <SU>20</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(2) thereunder,
                    <SU>21</SU>
                    <FTREF/>
                     because it establishes or changes a due, or fee.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         17 CFR 240.19b-4(f)(2).
                    </P>
                </FTNT>
                <P>At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend the rule change if it appears to the Commission that the action is necessary or appropriate in the public interest, for the protection of investors, or would otherwise further 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-TXSE-2026-011 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-TXSE-2026-011. 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 filing 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-TXSE-2026-011 and should be submitted on or before August 11, 2026.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>22</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14620 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Investment Company Act Release No. 36255; File No. 812-16029]</DEPDOC>
                <SUBJECT>360 Funds and M3Sixty Capital, LLC</SUBJECT>
                <DATE>July 16, 2026.</DATE>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Securities and Exchange Commission (“Commission” or “SEC”).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <P>Notice of an application under section 6(c) of the Investment Company Act of 1940 (“Act”) for an exemption from section 15(a) of the Act, as well as from certain disclosure requirements in rule 20a-1 under the Act, Item 19(a)(3) of Form N-1A, Items 22(c)(1)(ii), 22(c)(1)(iii), 22(c)(8) and 22(c)(9) of Schedule 14A under the Securities Exchange Act of 1934, and sections 6-07(2)(a), (b), and (c) of Regulation S-X (“Disclosure Requirements”).</P>
                <PREAMHD>
                    <HD SOURCE="HED">SUMMARY OF APPLICATION:</HD>
                    <P> The requested exemption would permit Applicants to enter into and materially amend subadvisory agreements with subadvisers without shareholder approval and would grant relief from the Disclosure Requirements as they relate to fees paid to the subadvisers.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">APPLICANTS:</HD>
                    <P> 360 Funds and M3Sixty Capital, LLC.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">FILING DATES:</HD>
                    <P> The application was filed on May 15, 2026 and amended on June 26, 2026 and July 15, 2026.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">HEARING OR NOTIFICATION OF HEARING:</HD>
                    <P>
                         An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing on any application by emailing the SEC's Secretary at 
                        <E T="03">Secretarys-Office@sec.gov</E>
                         and serving the Applicants with a copy of the request by email, if an email address is listed for the relevant Applicant below, or personally or by mail, if a physical address is listed for the relevant Applicant below. The email should include the file number referenced above. Hearing requests should be received by the Commission by 5:30 p.m., Eastern time, on August 10, 2026, and should be accompanied by proof of service on the Applicants, in the form of an affidavit, or, for lawyers, a certificate of service. Pursuant to rule 0-5 under the Act, hearing requests should state the nature of the writer's interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by emailing the Commission's Secretary.
                    </P>
                </PREAMHD>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">The Commission:</E>
                          
                        <E T="03">Secretarys-Office@sec.gov.</E>
                    </P>
                    <P>
                        <E T="03">Applicants:</E>
                         Randall K. Linscott, President, 360 Funds, 4300 Shawnee Mission Parkway, Suite 100, Fairway, Kansas 66205; Bo James Howell, FinTech Law, LLC, 
                        <E T="03">Bo.Howell@fintechlaw.ai.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Kris Easter Guidroz, Senior Counsel, or Thomas Ahmadifar, Branch Chief, at (202) 551-6825 (Division of Investment Management, Chief Counsel's Office).</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <PRTPAGE P="45871"/>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    For Applicants' representations, legal analysis, and conditions, please refer to Applicants' amended application, dated July 15, 2026, which may be obtained via the Commission's website by searching for the file number at the top of this document, or for an Applicant using the Company name search field on the SEC's EDGAR system. The SEC's EDGAR system may be searched at 
                    <E T="03">https://www.sec.gov/search-filings.</E>
                     You may also call the SEC's Office of Investor Education and Assistance at (202) 551-8090.
                </P>
                <SIG>
                    <P>For the Commission, by the Division of Investment Management, under delegated authority.</P>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14616 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[OMB Control No. 3235-0031]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 17f-2(e)</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 (“SEC” or “Commission”) is soliciting comments on the proposed collection of information provided for in Rule 17f-2(e) (17 CFR 240.17f-2(e)), under the Securities Exchange Act of 1934 (15 U.S.C. 78a 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <P>
                    Section 17(f)(2) requires, in pertinent part, that every member of a national securities exchange, broker, dealer, registered transfer agent, and registered clearing agency (collectively, “covered entities”) require that each of their partners, directors, officers, and employees be fingerprinted and submit (or cause to be submitted) such fingerprints to the U.S. Attorney General for identification and appropriate processing.
                    <SU>1</SU>
                    <FTREF/>
                     Section 17(f)(2) also authorizes the Commission, by rule, to exempt from the fingerprinting requirements of Section 17(f)(2) upon specified terms, conditions, and periods, any class of partners, directors, officers, and employees of a covered entity, if the Commission finds that such action is not inconsistent with the public interest or the protection of investors. Rule 17f-2 promulgated under Section 17(f)(2) provides for certain exemptions from the fingerprinting requirement of Section 17(f)(2).
                    <SU>2</SU>
                    <FTREF/>
                     Under Rule 17f-2, a covered entity may claim an exemption from the fingerprint requirements of Rule 17f-2 provided they make and keep current a statement entitled “Notice Pursuant to Rule 17f-2” containing the information specified in Rule 17f-2(e)(1) to support their claim of exemption (“Notice”).
                    <SU>3</SU>
                    <FTREF/>
                     Rule 17f-2(e)(2) requires covered entities to keep a copy of the Notice in an easily accessible place at the organization's principal office and at the office employing the persons for whom exemptions are claimed, and to make the Notice available for inspection upon request by the Commission, appropriate regulatory agency (if not the Commission), or other designated examining authority. Notices prepared pursuant to Rule 17f-2(e) must be maintained for different lengths of time depending on the type of entity maintaining the Notice. Under Rule 240.17a-1, every registered clearing agency must keep and preserve at least one copy of all documents made or received by it in the course of its business for a period of not less than five years. Under Rule 240.17a-4 certain members of national securities exchanges, brokers, and dealers must maintain the Notice during the life of their enterprise. Under Rule 240.17Ad-7, registered transfer agents must maintain the Notice in an easily accessible place. The recordkeeping requirement under Rule 17f-2(e) assists the Commission and other regulatory agencies with helping ensure compliance with Rule 17f-2.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78q(f)(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.17f-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         17 CFR 240.17f-2(e).
                    </P>
                </FTNT>
                <P>Based on the Commission's experience with Rule 17f-2(e), we estimate that approximately 75 respondents will incur an average burden of 30 minutes per year to comply with this rule, which represents the time it takes for a staff person at a covered entity to properly document a claimed exemption from the fingerprinting requirements of Rule 17f-2 in the required Notice (0.4 hours, constituting a reporting type of burden) and to properly retain the Notice according to the entity's record retention policies and procedures (0.1 hours, constituting a recordkeeping type of burden). The estimated aggregate annual burden for all covered entities is approximately 38 hours (75 entities × 0.5 hours, rounded up).</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>Written comments are invited on: (a) whether this proposed collection of information is necessary for the proper performance of the functions of the SEC, including whether the information will have practical utility; (b) the accuracy of the SEC's estimate of the burden imposed by the proposed collection of information, including the validity of the methodology and the 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 respondents, including through the use of automated, electronic collection techniques or other forms of information technology.</P>
                <P>
                    Please direct your written comments on this 60-Day Collection Notice to Austin Gerig, Director/Chief Data Officer, Securities and Exchange Commission, c/o Tanya Ruttenberg via email to 
                    <E T="03">PaperworkReductionAct@sec.gov</E>
                     by September 21, 2026.
                </P>
                <SIG>
                    <DATED> Dated: July 16, 2026.</DATED>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2026-14630 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <DEPDOC>[Disaster Declaration #21706 and #21707; MISSOURI Disaster Number MO-20029]</DEPDOC>
                <SUBJECT>Administrative Declaration of a Disaster for the State of Missouri</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 notice of an Administrative declaration of a disaster for the state of Missouri dated July 15, 2026. Incident: Severe Storms, Tornadoes, and Flooding.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Issued on July 15, 2026.</P>
                    <P>
                        <E T="03">Incident Period:</E>
                         April 23, 2026 through April 28, 2026.
                    </P>
                    <P>
                        <E T="03">Physical Loan Application Deadline Date:</E>
                         September 14, 2026.
                    </P>
                    <P>
                        <E T="03">Economic Injury (EIDL) Loan Application Deadline Date:</E>
                         April 15, 2027.
                    </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>
                        Jennifer Talarico, Office of Disaster 
                        <PRTPAGE P="45872"/>
                        Recovery and 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 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 in person at other locally announced locations. For further assistance 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. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
                </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>
                     Greene.
                </FP>
                <FP SOURCE="FP-2">Contiguous Counties:</FP>
                <FP SOURCE="FP1-2">Missouri: Christian, Dade, Dallas, Lawrence, Polk, Webster.</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>5.750</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Homeowners without Credit Available Elsewhere</ENT>
                        <ENT>2.875</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">Private Non-Profit Organizations with Credit Available Elsewhere</ENT>
                        <ENT>3.625</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="02">Private Non-Profit Organizations without Credit Available Elsewhere</ENT>
                        <ENT>3.625</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">Private Non-Profit Organizations without Credit Available Elsewhere</ENT>
                        <ENT>3.625</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The number assigned to this disaster for physical damage is 21706B and for economic injury is 217070.</P>
                <P>The states which received an SBA Administrative declaration are Missouri.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance Number 59008)</FP>
                    <FP>(Authority: 13 CFR 123.3(b).)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>James Stallings,</NAME>
                    <TITLE>Associate Administrator, Office of Disaster Recovery &amp; Resilience.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14606 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8026-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SMALL BUSINESS ADMINISTRATION</AGENCY>
                <SUBJECT>Small Business Investment Company (“SBIC”) Program: SBA Model Form of Agreement for Limited Partnership SBICs</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Small Business Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Small Business Administration (“SBA”) intends to update the SBA Model Form of Limited Partnership Agreement (the “Model”) to more closely align with customary provisions generally outlined in private funds, while maintaining those regulatory and policy provisions within the Model that are necessary to minimize the risk of loss in the SBIC program and ensure consistency with SBA's updated regulations and policies. SBA welcomes comments from the public on the current Model (Version 3.0) and on how best to achieve this objective. Specific recommendations for change, with supporting rationale, are welcome. SBA intends to consider such comments in drafting a revised Model, for potential release at a later date.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comment Date:</E>
                         Comments on the Model must be received on or before September 21, 2026.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        You may submit your comments, identified by SBA-2026-0166, at 
                        <E T="03">Federal eRulemaking Portal: https://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        SBA will post all comments on 
                        <E T="03">https://www.regulations.gov.</E>
                         If you wish to submit confidential business information (“CBI”), as defined in the User Notice at 
                        <E T="03">https://www.regulations.gov,</E>
                         please submit the information to Thomas Smith, Attorney Advisor, Office of General Counsel, U.S. Small Business Administration, 409 Third Street SW, Washington, DC 20416, or send an email to 
                        <E T="03">Thomas.Smith@sba.gov</E>
                         with “SBA-2026-0166 Small Business Investment Company Program: SBA Model Form of Agreement of Limited Partnership SBICs” in the subject heading. Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination on whether it will publish the information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Tami Howie, Acting Deputy Associate Administrator, Office of Investment and Innovation, 
                        <E T="03">Tami.Howie@sba.gov,</E>
                         (202) 921-6232, or Thomas Furman, Attorney Advisor, Office of General Counsel, 
                        <E T="03">Thomas.Furman@sba.gov,</E>
                         (202) 412-8087.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The SBIC program was established under the Small Business Investment Act of 1958, as amended (“SBIC Act”) to improve and stimulate the national economy in general and the small-business segment thereof in particular by establishing a program to stimulate and supplement the flow of private equity capital and long-term loan funds to small-businesses. SBICs are privately owned and managed investment funds, licensed and regulated by SBA, that use private capital raised from investors SBA-guaranteed leverage to make equity and debt investments in qualifying small businesses.</P>
                <P>
                    The SBIC Act requires SBA's written approval of an SBIC applicant's applicable legal documents, and SBA's SBIC licensing application (SBA Form 2181; OMB Control No. 3245-0062) requires an applicant to submit, among other things, its organizational documents. SBA notes that a substantial majority of applicants to the SBIC program are formed as limited partnerships, and accordingly, SBA has periodically published model limited partnership agreements to assist SBICs in streamlining the review of each SBIC's organizational documents. The original version of the Model was developed in 2000 and last updated in 2016 to assist applicants in producing a limited partnership agreement suitable for an SBIC and to facilitate the licensing process by including provisions required by the regulations governing the SBIC program (13 CFR part 107) and other SBA policy requirements designed to minimize the risk of loss to SBA in providing financial assistance to SBICs. The current Model is available at 
                    <E T="03">https://www.sba.gov/document/support--model-lpa-version-30-standard-and-impact-sbics.</E>
                </P>
                <P>
                    Since the Model was last updated in 2016, new regulations have been promulgated within the SBIC program and changes to common market terms and conditions have occurred within the private equity and venture capital industry. SBA is soliciting comments and recommendations from the public on updating the Model and will consider such comments when revising the Model. Once the Model is finalized, SBA will publish a notice in the 
                    <E T="04">Federal Register</E>
                     and post the final revised version of the Model on the SBIC website at 
                    <E T="03">https://www.sba.gov/documents.</E>
                    <PRTPAGE P="45873"/>
                </P>
                <P>
                    <E T="03">Authority:</E>
                     15 U.S.C. 681.
                </P>
                <SIG>
                    <NAME>Joshua Carter,</NAME>
                    <TITLE>Associate Administrator for Investment and Innovation.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14696 Filed 7-20-26; 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>Bessie Coleman Women in Aviation (BCWA) Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), U.S. Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; solicitation of nominations for membership.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>DOT solicits nominations for membership to serve on the Bessie Coleman Women in Aviation (BCWA) Advisory Committee, which is intended to provide independent advice and recommendations to the Secretary of Transportation through the FAA Administrator to promote the recruitment, retention, employment, education, training, career advancement, and well-being of women in aviation professions and aviation-focused Federal civil service positions.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The deadline for nominations for Committee members must be received on or before August 20, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Email all nomination materials to 
                        <E T="03">BCWAAC@faa.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Thomas W. Cuddy, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591, telephone (202) 267-5869; email to 
                        <E T="03">BCWAAC@faa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The BCWA Advisory Committee was established by the Secretary on November 15, 2024, in accordance with section 403 of the FAA Reauthorization Act of 2024, Public Law 118-63, and it is operated in accordance with the Federal Advisory Committee Act (FACA), 5 United States Code (U.S.C.) ch. 10. The purpose of the BCWA Advisory Committee is to provide independent advice and recommendations to the Secretary of Transportation through FAA and in response to specific taskings received directly from DOT or FAA or approved by a majority of the voting members of the Committee. In response to DOT or FAA requests, the BCWA Advisory Committee may provide DOT and FAA with information that may be used for planning purposes.</P>
                <P>The BCWA Advisory Committee will act solely in an advisory capacity and does not exercise program management responsibilities. Decisions directly affecting the implementation of transportation policy will remain with the Secretary of Transportation and the FAA Administrator, as appropriate. The BCWA Advisory Committee duties include:</P>
                <P>a. Undertaking tasks assigned only by DOT or FAA or approved by a majority of the voting members of the Committee, without duplicating the objectives of the Air Carrier Training Aviation Rulemaking Committee.</P>
                <P>b. Responding to ad hoc informational requests from DOT or FAA and/or providing input to DOT or FAA on the overall BCWA Advisory Committee structure (including structure of the subcommittees and or task groups).</P>
                <P>c. Make recommendations for strategic objectives, priorities, and policies that would improve the recruitment, retention, training, and career advancement of women in aviation professions.</P>
                <P>d. Evaluate opportunities for the Administration to improve the recruitment and retention of women in the Administration.</P>
                <P>The Committee will be continuing but is subject to renewal every 2 years. The Committee is expected to meet at least twice per year to carry out its responsibilities. Unless otherwise required by law or approved by the Secretary, all meetings will be held virtually. BCWA Advisory Committee meetings will be open to the public, except as provided under section 10(d) of FACA, as implemented by 41 Code of Federal Regulation (CFR) part 102-3.</P>
                <P>In this notice, DOT is soliciting nominations for membership to the Committee. The Committee shall report to the Secretary of Transportation through the FAA Administrator and shall comprise approximately 25 voting members, representing:</P>
                <P>(i) Aircraft manufacturers and aerospace companies.</P>
                <P>(ii) Public and private aviation labor organizations, including collective bargaining representatives of—</P>
                <P>(I) aviation safety inspectors and safety engineers of FAA;</P>
                <P>(II) air traffic controllers;</P>
                <P>(III) certified aircraft maintenance technicians; and</P>
                <P>(IV) commercial airline crewmembers.</P>
                <P>(iii) General aviation operators.</P>
                <P>(iv) Air carriers.</P>
                <P>(v) Business aviation operators, including powered-lift operators.</P>
                <P>(vi) Unmanned aircraft systems operators.</P>
                <P>(vii) Aviation safety management experts.</P>
                <P>(viii) Aviation maintenance, repair, and overhaul entities.</P>
                <P>(ix) Airport owners, operators, and employees.</P>
                <P>(x) Institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)), a postsecondary vocational institution (as defined in section 102(c) of the Higher Education Act of 1965 (20 U.S.C. 1002)), or a high school or secondary school (as such terms are defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)).</P>
                <P>(xi) A flight school that provides flight training, as defined in part 61 of title 14, CFR, or that holds a pilot school certificate under part 141 of title 14, CFR.</P>
                <P>(xii) Aviation maintenance technician schools governed under part 147 of title 14, CFR.</P>
                <P>(xiii) Engineering business associations.</P>
                <P>(xiv) Civil Air Patrol.</P>
                <P>(xv) Nonprofit organizations within the aviation industry.</P>
                <P>Additional nonvoting members may be appointed from among officers or employees of FAA, as well as from the Department of Education and Department of Labor.</P>
                <P>The Chairperson shall serve a 2-year term. Each voting and nonvoting member of the Committee shall be appointed for a 2-year term and may continue to serve until their replacement is chosen or they are reappointed. The Department is interested in ensuring membership is balanced fairly in terms of the points of view represented and the functions to be performed by the advisory committee.</P>
                <P>
                    <E T="03">Process and Deadline for Submitting Nominations:</E>
                     Qualified individuals can self-nominate or be nominated by any individual or organization. To be considered for the BCWA Advisory Committee, nominators should submit the following information:
                </P>
                <P>(1) Name, title, and relevant contact information (including phone and email address) of the individual requesting consideration;</P>
                <P>(2) A letter of support from a company, union, trade association, academic, or nonprofit organization on letterhead containing a brief description of why the nominee should be considered for membership;</P>
                <P>(3) Short biography of nominee, including professional and academic credentials;</P>
                <P>
                    (4) An affirmative statement that the nominee meets all Committee eligibility requirements and identifies which stakeholder group they would represent.
                    <PRTPAGE P="45874"/>
                </P>
                <P>Please do not send company, trade association, or organization brochures or any other information. Materials submitted should total two pages or fewer. Should more information be needed, DOT staff will contact the nominee, obtain information from the nominee's past affiliations, or obtain information from publicly available sources, such as the internet.</P>
                <P>Nominations must be received before August 20, 2026. Nominees selected for appointment to the Committee will be notified by return email and by a letter of appointment.</P>
                <SIG>
                    <P>Issued in Washington, DC.</P>
                    <NAME>Daniel Blum,</NAME>
                    <TITLE>Executive Director, Acting, Office of Aviation Policy &amp; Plans.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14617 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>National Highway Traffic Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. NHTSA-2025-0127]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Request for Comment; 49 CFR Part 595, Subpart B, Retrofit Air Bag Switches</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments on a request for reinstatement with modification of a previously approved information collection.</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) summarized below will be submitted to the Office of Management and Budget (OMB) for review and approval. The ICR describes the nature of the information collection and its expected burden. This notice describes a collection of information for which NHTSA intends to seek OMB approval associated with the process of obtaining authorization for the installation of retrofit air bag switches. A 
                        <E T="04">Federal Register</E>
                         Notice with a 60-day comment period soliciting comments on the following information collection was published on July 22,2025. No comments were received.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before August 20, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection, including suggestions for reducing burden, should be submitted to the Office of Management and Budget at 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         To find this particular information collection, select “Currently under Review—Open for Public Comment” or use the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For additional information or access to background documents, contact Ms. Carla Rush (
                        <E T="03">carla.rush@dot.gov</E>
                        ), U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590, Telephone: (202) 366-1810. Please identify the relevant collection of information by referring to its OMB Control Number.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Under the PRA (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), a Federal agency must receive approval from the OMB before it collects certain information from the public and a person is not required to respond to a collection of information by a Federal agency unless the collection displays a valid OMB control number. In compliance with these requirements, this notice announces that the following information collection request will be submitted OMB.
                </P>
                <P>
                    <E T="03">Title:</E>
                     49 CFR part 595, subpart B, Retrofit Air Bag Switches.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2127-0588.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     HS Forms 603 and 2035.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Reinstatement with modification of a previously approved information collection.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         This ICR is to request a reinstatement with modification of a previously approved information collection that was not renewed and expired on February 29, 2020 (OMB Control No. 2127-0588).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Type of Review Requested:</E>
                     Regular.
                </P>
                <P>
                    <E T="03">Requested Expiration Date of Approval:</E>
                     Three years from date of approval.
                </P>
                <P>
                    <E T="03">Summary of the Collection of Information:</E>
                     This information collection is associated with the process of obtaining authorization for the installation of retrofit air bag switches. The modifications to the previously approved information collection include accounting for the installation return form that the air bags switch installers must return to NHTSA, updating the estimated number of requests per year, accounting for printing costs, and allowing electronic submission of the request form.
                </P>
                <P>
                    <E T="03">Description of the Need for the Information and Proposed Use of the Information:</E>
                     The completed retrofit air bag switch request form serves a variety of purposes. First, it seeks to ensure that the vehicle owner has read the agency's air bag information brochure. Second, the request form includes a list of the eligibility criteria for a retrofit on-off switch with a check box next to each justification, and the applicant must select which justification they are requesting an air bag switch under as part of completing the request form. Third, by requiring that the vehicle owner initial a statement about the safety consequences of turning off an air bag, the form seeks to ensure that the authorization is made with full knowledge of those consequences. Fourth, by requiring the owners to certify the accuracy of the information provided on the form and to acknowledge the applicability of 18 U.S.C. 1001, the form will increase the likelihood of accurate certifications.
                </P>
                <P>The submission of the completed air bag switch installation forms by the dealers and repair businesses to NHTSA, as required by the regulation, will serve several agency purposes. First, they will aid the agency in monitoring the number of air bag switch installations performed. They also will enable the agency to determine whether the dealers and repair businesses are complying with the terms of the exemption, including the requirement that dealers and repair businesses only perform approved retrofit air bag switch installations. Finally, the submission of the completed installation forms to the agency will provide a record of which vehicles have an installed retrofit air bag switch.</P>
                <P>
                    <E T="03">60-Day Notice:</E>
                     A 
                    <E T="04">Federal Register</E>
                     notice with a 60-day comment period soliciting public comments on this information collection was published on July 22, 2025 (90 FR 34578). No comments were received.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Private individuals, motor vehicle dealers, and repair businesses.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     300.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Once.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden:</E>
                     NHTSA estimates that the time to complete the air bag switch request form is 0.5 hour and the time to complete the switch installation return form is 0.1 hour. Based on the previously approved information collection, on average we receive 150 air bag switch request forms annually.
                    <SU>2</SU>
                    <FTREF/>
                     We are assuming that 
                    <PRTPAGE P="45875"/>
                    everyone who submits a switch request form would be approved and would have a switch installed. This means that we would expect 150 installation return forms to be filled out. Therefore, the total estimated burden hours for this collection of information is 90 hours.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         There has been a recent decline in retrofit air bag switch requests; however, that can be attributed to the recent occurrence of Coronavirus Disease 2019 (COVID-19) and because the request form lists the expired date (February 2020) of the previously approved information collection. In addition, subpart B of part 595 specifies that only vehicles manufactured before September 1, 2015, may be modified by a dealer or motor vehicle repair business to install a retrofit air bag switch, which 
                        <PRTPAGE/>
                        may also account for the decline in requests the agency received.
                    </P>
                </FTNT>
                <P>
                    To calculate the labor cost associated with filling out the forms associated with this information collection NHTSA used the median wage estimate for all occupations for the respondents that would be filling out the forms. The Bureau of Labor Statistics (BLS) estimates that this median hourly wage is $23.80 in 2024 dollars.
                    <SU>3</SU>
                    <FTREF/>
                     We did not attribute a labor cost for the burden associated with filling out the installation return forms because the form is completed during the air bag switch installation. Therefore, NHTSA estimates the total labor cost associated with the 90 burden hours to be $1,785.00 annually.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Bureau of Labor Statistics, May 2024 National Occupational Employment and Wage Estimates, median wage for all occupations, available at 
                        <E T="03">https://www.bls.gov/oes/current/oes_nat.htm#00-0000.</E>
                    </P>
                </FTNT>
                <P>
                    <E T="03">Estimated Total Annual Burden Cost:</E>
                     In order to provide the agency with the information requested the respondents must mail, fax, or email the forms. In the previously approved information collection email submission was not an option and some respondents used fax to avoid mail delays. We believe that with this information collection respondents largely will opt to use the email submission option. NHTSA estimates there will be no additional costs to respondents that choose to submit the forms electronically. Therefore, assuming all the respondents will mail the forms to NHTSA will be a conservative cost burden estimate (overestimate). Using the above estimates of the number of forms submitted (300 annually), the estimated cost of printing and mailing the forms first-class by individuals ($1.53 per form), yields a cost burden to the respondents of $459.00 annually.
                </P>
                <P>
                    <E T="03">Public Comments Invited:</E>
                     You are asked to comment on any aspects of this information collection, including (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 respondents, including 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>
                <P>
                    <E T="03">Authority:</E>
                     The Paperwork Reduction Act of 1995; 44 U.S.C. Chapter 35, as amended; 49 CFR 1.49; and DOT Order 1351.29A.
                </P>
                <SIG>
                    <NAME>Jane Doherty,</NAME>
                    <TITLE>Acting Associate Administrator for Rulemaking.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14642 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-59-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>National Highway Traffic Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. NHTSA-2026-1123] </DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Notice and Request for Comment; 49 CFR Part 575—Consumer Information Regulations (Sections 103 and 105)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments on a request for reinstatement with change of a previously approved information collection.</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) summarized below will be submitted to the Office of Management and Budget (OMB) for review and approval. The ICR describes the nature of the information collection and its expected burden. This Information Collection Request seeks OMB approval to reinstate with changes a previously approved information collection under 49 CFR part 575 (Sections 103 and 105), requiring manufacturers to provide and submit consumer information related to truck-camper loading and utility vehicle rollover warnings in support of NHTSA's safety and consumer information programs. A 
                        <E T="04">Federal Register</E>
                         Notice with a 60-day comment period soliciting comments on the following information collection was published on January 20, 2026 (91 FR 2422). No comments were received.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before August 20, 2026.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection, including suggestions for reducing burden, should be submitted to the Office of Management and Budget at 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         To find this particular information collection, select “Currently under Review—Open for Public Comment” or use the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For additional information or access to background documents, contact Dr. Hebbani Lokesh (
                        <E T="03">hebbani.lokesh@dot.gov</E>
                        ) Address: National Highway Traffic Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590. Dr. Hebbani Lokesh's telephone number is (771) 215-6934.
                    </P>
                    <P>Please identify the relevant collection of information by referring to its OMB Control Number. </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                     Under the PRA (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), a Federal agency must receive approval from the Office of Management and Budget (OMB) before it collects certain information from the public and a person is not required to respond to a collection of information by a Federal agency unless the collection displays a valid OMB control number. In compliance with these requirements, this notice announces that the following information collection request will be submitted OMB.
                </P>
                <P>
                    <E T="03">Title:</E>
                     49 CFR part 575—Consumer Information Regulations (Sections 103 and 105).
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2127-0049.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     Request for approval to reinstate with changes a previously approved information collection. 
                </P>
                <P>
                    <E T="03">Type of Review Requested:</E>
                     Regular. 
                </P>
                <P>
                    <E T="03">Length of Approval Requested:</E>
                     Three years from date of approval. 
                </P>
                <P>
                    <E T="03">Summary of the Collection of Information:</E>
                     This information collection pertains to 49 CFR part 575. Part 575.103, “Truck-camper loading,” which requires manufacturers of light trucks that are capable of accommodating slide-in campers to provide information on the cargo weight rating and the longitudinal limits within which the center of gravity for the cargo weight rating should be located. Section 103 also requires manufacturers of slide-in campers to affix to each camper a label that contains information relating to identification and proper loading of the camper and to provide more detailed loading information in the owner's manual. 49 CFR part 575.105, “Vehicle rollover,” requires manufacturers of certain utility vehicles to affix a label in a prominent location 
                    <PRTPAGE P="45876"/>
                    alerting drivers that the handling and maneuvering characteristics of utility vehicles require special driving practices when these vehicles are operated. Also, as required by 49 CFR part 575.6(d)(1)(i), vehicle manufacturers must submit to NHTSA's Administrator, prior to new model introduction, two copies of the information specified in Part 575.103 and Part 575.105 that is applicable to the vehicles offered for sale. The information must be submitted at least 90 days before information on such vehicles is first provided for examination by prospective purchasers. 
                </P>
                <P>
                    <E T="03">Description of the Need for the Information and Proposed Use of the Information:</E>
                     49 U.S.C. 30117 (a) specifies that the Secretary of Transportation may require that each manufacturer of a motor vehicle or motor vehicle equipment provide technical information related to performance and safety required to carry out this chapter. This section further authorizes the Secretary to require manufacturers to notify first purchasers and prospective purchasers of these data. To carry out this statutory directive, the agency promulgated 49 CFR part 575, Consumer Information Regulations. The regulation requires manufacturers to provide performance and safety information to their dealers who will distribute this information to potential first purchasers of new vehicles. These manufacturers also furnish the agency with copies. Every manufacturer of motor vehicles and motor vehicle equipment must provide NHTSA with performance and safety information and technical data to comply with the following:
                </P>
                <P>• Truck-camper loading (information about trucks that can accommodate slide-in campers) (Part 575.103).</P>
                <P>• Vehicle rollover (information about handling and maneuvering characteristics of utility vehicles) (Part 575.105).</P>
                <P>
                    <E T="03">60-Day Notice:</E>
                     A 
                    <E T="04">Federal Register</E>
                     notice with a 60-day comment period soliciting public comments on the following information collection was published on January 20, 2026 (91 FR 2422). No comments were received. 
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Motor vehicle manufacturers. 
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     35 (18 utility vehicle and truck manufacturers and 17 slide-in camper manufacturers). 
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     As needed. 
                </P>
                <P>
                    <E T="03">Estimated Number of Responses:</E>
                     The agency estimates 15 responses annually.  NHTSA estimates there are currently 17 slide-in camper manufacturers, 7 manufacturers of trucks capable of accommodating slide-in campers, and 18 utility vehicle manufacturers subject to Part 575 Sections 103 and 575.105. Because of overlap, the total number of distinct respondents is estimated at 35. Based on prior years' experience, NHTSA estimates that approximately 15 submissions will be received annually. Of these, about 12 will be associated with the introduction of new model vehicles and about three will be revisions to previously submitted information. Manufacturers submit only when they introduce a new model or change previously provided information.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     22,865 hours per year.
                </P>
                <P>The light truck manufacturers gather only pre-existing data for the purposes of this regulation. The agency estimates light truck manufacturers use a total of 135 hours (about nine hours per manufacturer) to gather and arrange data in proper format.</P>
                <P>Light truck manufacturers' significant burden is printing and distributing copies of this consumer information to their dealers and attaching the labels to light trucks that are capable of accommodating slide-in campers. The agency estimates about 800,000 copies of this information will be printed. Although most high-speed printing methods are fast, we assume a total burden of 60 hours (four hours per manufacturer) to print this information.</P>
                <P>The final step is to estimate the burden to print the truck-camper labels and utility vehicle information in the owner's manual or on a separate document included with the owner's manual. Since this information is listed in the owner's manual, NHTSA estimates 105 hours (seven hours per manufacturer) are spent printing the consumer information in the owner's manual. OMB approved the owner's manual information collection under a separate request (approval OMB Control Number 2127-0541).</P>
                <P>The estimated annual burden is 300 hours. This number is derived from multiplying total responses (15) by the total burden hours per manufacturer (20 hours).</P>
                <P>In addition to submission hours, NHTSA accounts for the burden associated with affixing truck-camper loading labels (Part 575.103) and utility vehicle rollover labels (Part 575.105). NHTSA estimates that labeling 13,000 slide-in camper units and 4,500,000 utility vehicles requires approximately 22,565 hours annually (4,513,000 units × 0.005 hours per label).</P>
                <P>The combined estimated total annual burden is therefore 22,865 hours (300 hours for submissions + 22,565 hours for labeling). </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Cost:</E>
                     $1,579,550.
                </P>
                <P>The burden estimates are based on the printing costs.</P>
                <P>NHTSA estimates that each label costs $0.35 to print. With approximately 4,513,000 labels annually, the total annual printing cost is $1,579,550. Thus, the estimated total annual cost burden, exclusive of labor costs, is $1,579,550.Label printing: 4,513,000 labels × $0.35 = $1,579,550</P>
                <P>
                    <E T="03">Public Comments Invited:</E>
                     You are asked to comment on any aspects of this information collection, including (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 respondents, including 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>
                <P>
                    <E T="03">Authority:</E>
                     The Paperwork Reduction Act of 1995; 44 U.S.C. Chapter 35, as amended; 49 CFR 1.49; and DOT Order 1351.29A.
                </P>
                <SIG>
                    <NAME>Jane Doherty,</NAME>
                    <TITLE>Acting Associate Administrator, Rulemaking.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14641 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-59-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <SUBJECT>VA National Academic Affiliations Council</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Veterans Affairs.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of intent to file.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>We are giving notice that the Secretary of Veterans Affairs intends to reestablish the Department of Veterans Affairs (VA) National Academic Affiliations Council for a 2-year period. The Secretary has determined that the Council is necessary and in the public interest.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Jeffrey Moragne, Committee Management Officer, Department of Veterans Affairs, Advisory Committee Management Office (00AC), 811 
                        <PRTPAGE P="45877"/>
                        Vermont Avenue, 4th Floor, NW, Washington, DC 20420; telephone (202) 714-1578; or email at 
                        <E T="03">Jeffrey.Moragne@va.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Pursuant to the Federal Advisory Committee ACT, the Secretary of Veterans Affairs intends to reestablish the VA National Academic Affiliations Council (NAAC or Council) for two (2) years from the filing date. The purpose of the Council is charged with developing and recommending ways to enhance the unique partnership between the VA and the nation's universities, health professions schools, and teaching hospitals.. The Council's activities include the following:</P>
                <P>• Developing and recommending strategies for effective communication on academic affiliations between VA and relevant stakeholder organizations, including recommendations about the optimal function of affiliation partnership councils;</P>
                <P>• Developing and recommending mechanisms to expand the number and type of mutually advantageous affiliations between VA and the academic community;</P>
                <P>• Identifying and recommending opportunities to better align the missions and operations of VA and its academic affiliates;</P>
                <P>• Identifying policy, regulatory, and administrative impediments to effective affiliation management; and</P>
                <P>• Developing and recommending appropriate mechanisms to share faculty, trainees, space, equipment, and other health care resources.</P>
                <P>Also in pursuant to 41 CFR 102-3.65, the Department of Veterans Affairs provides this written notice determination stating that the Council is in the public interest and found to be in accordance with the Federal Advisory Community Act (FACA), the FACA 2025 Final Rule, and current to the U.S. General Services Administration, Committee Management Secretariat guidance. The following factors below provide an overview of the Council's operations and public interest intent.</P>
                <P>Annual Budget—The overall operating costs for the Council is $385,000. All members receive travel expenses and a per diem allowance in accordance with the Federal Travel Regulation for any travel made in connection with their duties as members of the Committee. The expected costs are broken into:</P>
                <P>(i) Federal personnel (based on full-time equivalent (FTE) usage basis) is $340,000 and 1.5 with other Federal internal costs being $3,000.</P>
                <P>(ii) Proposed payments to Non-Federal Members is $0. Payments to Federal Members are $5,000. The Committee is composed of approximately 12 voting members who may be Regular Government Employees or Special Government Employees.</P>
                <P>(iii) Reimbursable costs equate to travel reimbursement for Non-Federal Members is $15,000, for Federal Members is $0 and for Federal Staff is $22,000.</P>
                <P>Membership Selection—The Committee is composed of members having experience and specific expertise relevant to the mission/function of the Council includes experience in health professions education, clinical workforce development, and special competence to evaluate and improve VA relationships with the national academic community. This expertise will be evident by experiences such as: direct and long-standing familiarity with health professions education in a discipline or disciplines, in a leadership position; knowledge and expertise in innovation in health professions education; direct knowledge and/or participation in affiliation relationships with VA; or direct experience in health systems similar to or comparable to VA.</P>
                <P>Existing Federal Advisory Committees—The following list of 27 VA advisory committees includes 18 that are statutory (with an asterisk *) and 9 non-statutory committees.</P>
                <FP SOURCE="FP-2">(1) VA National Academic Affiliations Council</FP>
                <FP SOURCE="FP-2">(* 2) Advisory Committee on Cemeteries and Memorials</FP>
                <FP SOURCE="FP-2">(3) Cooperative Studies Scientific Evaluation Committee</FP>
                <FP SOURCE="FP-2">(* 4) Advisory Committee on Disability Compensation</FP>
                <FP SOURCE="FP-2">(* 5) Veterans' Advisory Committee on Education</FP>
                <FP SOURCE="FP-2">(* 6) Veterans' Advisory Committee on Environmental Hazards (Administratively Inactive)</FP>
                <FP SOURCE="FP-2">(* 7) Advisory Committee on Former Prisoners of War</FP>
                <FP SOURCE="FP-2">(* 8) Geriatrics and Gerontology Advisory Committee</FP>
                <FP SOURCE="FP-2">(* 9) Research Advisory Committee on Gulf War Veterans' Illnesses</FP>
                <FP SOURCE="FP-2">(10) Health Systems Research Service Merit Review Board</FP>
                <FP SOURCE="FP-2">(* 11) Advisory Committee on Homeless Veterans</FP>
                <FP SOURCE="FP-2">(12) Joint Brain, Behavioral, and Mental Health and Medical Health Scientific Merit Review Board</FP>
                <FP SOURCE="FP-2">(* 13) Advisory Committee on Minority Veterans</FP>
                <FP SOURCE="FP-2">(14) National Research Advisory Council</FP>
                <FP SOURCE="FP-2">(* 15) Advisory Committee on U.S. Outlying Areas and Freely Associated States</FP>
                <FP SOURCE="FP-2">(* 16) Advisory Committee on Prosthetics and Special Disabilities Programs</FP>
                <FP SOURCE="FP-2">(* 17) Advisory Committee on the Readjustment of Veterans</FP>
                <FP SOURCE="FP-2">(* 18) Veterans' Advisory Committee on Rehabilitation</FP>
                <FP SOURCE="FP-2">(19) Rehabilitation Research, Development, and Translation Scientific Merit Review Board</FP>
                <FP SOURCE="FP-2">(20) Veterans' Rural Health Advisory Committee</FP>
                <FP SOURCE="FP-2">(* 21) Special Medical Advisory Group</FP>
                <FP SOURCE="FP-2">(* 22) Advisory Committee on Structural Safety of Department of Veterans Affairs Facilities</FP>
                <FP SOURCE="FP-2">(* 23) Advisory Committee on Tribal and Indian Affairs</FP>
                <FP SOURCE="FP-2">(24) Veterans' Family, Caregiver, and Survivor Advisory Committee</FP>
                <FP SOURCE="FP-2">(* 25) Veterans and Community Oversight and Engagement Board</FP>
                <FP SOURCE="FP-2">(26) Department of Veterans Affairs Voluntary Service National Advisory Committee</FP>
                <FP SOURCE="FP-2">(* 27) Advisory Committee on Women Veterans</FP>
                <P>Justification—Without the NAAC, VA would lose the structured advisory infrastructure through which critical guidance on clinical education, research, and care delivery have been delivered. The guidance and recommendations provided by the NAAC are uniquely informed by its composition of senior academic and clinical leaders and therefore cannot be replicated or obtained through any other federal committee government source or more cost effective less burdensome alternative.</P>
                <P>
                    Summary of Previous Committee Accomplishments—The Council's standard operations entail conducting four meetings per year; two face-to-face meetings, one of which is local in Washington, DC to receive updates from VA Senior Leaders, and one is a face-to-face meeting on site at one of the VA's across the country. Two additional virtual meetings take place annually. The NAAC members meet to provide recommendations to the Secretary of Veterans Affairs and Under Secretary for Health on matters affecting the unique partnership between the VA and the nation's universities, health professions schools, and teaching hospitals. The NAAC's recommendations highlight significant collaborative efforts between VA and its academic partners to advance Veteran care, workforce readiness, and innovation in health professions education (HPE). Since the Council's establishment, the NAAC has produced 96 recommendations for VA. Of these recommendations, 54% (52 recommendations) were fully 
                    <PRTPAGE P="45878"/>
                    implemented by VA, 42% (41 recommendations) were partially implemented, and 4% (3 recommendations) are pending the Secretary's review.
                </P>
                <P>Why Committee is Essential—For 80 years, VA has educated health professions trainees (HPTs) and is now the nation's largest health care training platform. Under the Office of Academic Affiliations oversight, VA annually provides clinical education and training programs to more than 124,000 HPTs from more than 60 health professions. In partnership with nearly 1,500 academic affiliates, VA conducts HPE programs offered at 142 VA medical facilities to advance HPTs knowledge and skills in caring for Veterans. The NAAC serves as a “strategic compass” for VA by supporting its education mission and ensuring that education policies, training infrastructure, and affiliation partnerships evolve in step with changes in U.S. health care, emerging professions, and national workforce shortages. By providing evidence-informed recommendations, the NAAC helps ensure VA maintains a robust pathway of highly qualified health professionals who support Veteran care across all Veterans Health Administration medical centers.</P>
                <P>In conclusion, this Notice of Intent states that reestablishing this council is in the public interest, essential to the conduct of agency business, and that the information provided is not available through any other advisory committee or source within the Federal Government.</P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Jelessa M. Burney,</NAME>
                    <TITLE>Federal Advisory Committee Management Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14651 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8320-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <DEPDOC>[Docket No. VA-2025-VACO-0001]</DEPDOC>
                <SUBJECT>Privacy Act of 1974; System of Records</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Veterans Affairs.</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>Pursuant to the Privacy Act of 1974, notice is hereby given that the Department of Veterans Affairs (VA) is modifying the system of records titled “Automated Safety Incident Surveillance and Tracking System (ASISTS)-VA” (99VA13). This system is used to identify specific cases of work-related injuries and illnesses, track and evaluate medical care of and services provided to injured or ill workers, and determine emerging causes, clusters of incidents, and outbreaks.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Comments on this modified system of records must be received no later than 30 days after the date of publication in the 
                        <E T="04">Federal Register</E>
                        . If no public comment is received during the period allowed for comment or unless otherwise published in the 
                        <E T="04">Federal Register</E>
                         by VA, the modified system of records will become effective a minimum of 30 days after date of publication in the 
                        <E T="04">Federal Register</E>
                        . If VA receives public comments, VA shall review the comments to determine whether any changes to the notice are necessary.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments may be submitted through 
                        <E T="03">www.regulations.gov</E>
                         under docket number VA-2025-VACO-0001 or mailed to VA Privacy Service (005X6F), 810 Vermont Avenue NW, Washington, DC 20420. Comments should indicate that they are submitted in response to “Automated Safety Incident Surveillance and Tracking System (ASISTS)-VA” (99VA13). Instructions for accessing agency documents, submitting comments, and viewing the docket are available on 
                        <E T="03">www.regulations.gov</E>
                         under “FAQ.” 
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                         Stephania Griffin, Veterans Health Administration, 
                        <E T="03">Stephania.Griffin@va.gov</E>
                         or 704-245-2492.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>VA is modifying the system by revising the System Name; System Number; System Location; System Manager; Authority for Maintenance of the System; Purpose; Categories of Records in the System; Records Source Categories; Routine Uses of Records Maintained in the System; Policies and Practices for Storage of Records; Policies and Practices for Retrieval of Records; Policies and Practices for Retention and Disposal of Records; Administrative, Technical and Physical Safeguards; Record Access Procedures; Contesting Record Procedures; and Notification Procedure.</P>
                <P>The System Name will be changed from “Automated Safety Incident Surveillance and Tracking System (ASISTS)-VA” to “Performance Logic-Employee Safety Incident Investigation Platform (ESIIP) Records-VA.”</P>
                <P>The System Number will be changed from 99VA13 to 99VA10 to reflect the current VHA organizational routing symbol.</P>
                <P>The System Location is being updated to replace the current language with: “Records are maintained electronically or on paper at Department of Veterans Affairs (VA) Medical Centers (address locations are listed in VA Appendix 1 of the biennial Privacy Act Issuance publication), Veterans Integrated Service Networks (VISN), and VA Data Processing Centers. Information from these records or copies of these records may be maintained by Performance Logic and the Veterans Health Administration (VHA) Central Office at 811 Vermont Avenue NW, Washington, DC 20571. Records are also located at the VA Enterprise Cloud at participating servers in the United States.”</P>
                <P>
                    The System Manager is being updated to replace “Office of Public Health and Environmental Hazards (13), Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, Officials maintaining the system: Director at the facility where the employee was associated” with “Director, VHA Office of Occupational Safety and Health, 
                    <E T="03">vhaoccsafetyandhealthaction@va.gov,</E>
                     811 Vermont Avenue NW, Washington, DC 20571.”
                </P>
                <P>The Authority for Maintenance of the System is being updated to include 29 CFR 1960; 29 CFR 1904; and 29 CFR 1910.1030.</P>
                <P>The Purpose is being updated to remove references to Workers' Compensation as the updated system has no function for submitting Workers' Compensation claims. This section is being rewritten to state, “The records and information may be used for managing work-related injuries and illnesses by identifying, characterizing, and tracking occupational injuries and illnesses and the progress of injured or ill current and former employees, trainees, contractors, subcontractors, volunteers, and other individuals working with or performing services for VHA.</P>
                <P>
                    With respect to occupational safety, information regarding a workplace injury or illness, including the description of the incident, any correction action taken, results of any investigation, and recommendations for employees' safety and health, is entered into ESIIP by the supervisor of an injured or ill employee and/or the health and safety personnel of the facility. These records are used to identify specific incidents of work- related injuries and illnesses; track and evaluate services and medical care of injured or ill workers; and determine emerging causes, clusters of incidents, and outbreaks. In addition, VHA uses the information to identify system-wide problems and opportunities for focused education; evaluate through statistical analysis the effectiveness health and 
                    <PRTPAGE P="45879"/>
                    safety systems; develop and manage the planning, distribution, and utilization of resources; and support further research in the area of occupational medicine. Some of these data are then compiled for reporting to the Occupational Safety and Health Administration (OSHA) of the Department of (DoL), in accordance with 29 CFR part 1960. Further, the records may be used by institutional members of an accident review board or an incident review board, a multidisciplinary group of health and safety professionals and representatives from human resources, safety, occupational health, and unions/labor representatives and infection control to determine root causes of injuries and illnesses; and by VA hospitals and regional offices, VA Central Office, and the VA Office of the Inspector General for audits, reviews, and investigations of such events.
                </P>
                <P>The records will be used to identify specific cases of work-related injuries and illnesses; track and evaluate medical care of and services provided to injured or ill workers, and determine emerging causes, clusters of incidents, and outbreaks. The records will also be used to identify system-wide problems and opportunities for focused education and intervention; evaluate the effectiveness of health and safety systems performance, especially after interventions, through statistical analysis; to develop and manage the planning, distribution, and utilization of resources; and support further research in the area of occupational medicine. The data may also be used for the review of root causes of injuries, for audits, reviews, and investigations of incidents involving workplace injuries and illnesses.</P>
                <P>Data may be accessed locally, at the VISN level and Program Office level through Performance Logic directly. Nationally, data may be accessed through the rolled-up master file and data use agreements with the System Manager.</P>
                <P>ESIIP users are at the facility, VISN and national level. At the facility level: safety and occupational health staff and safe patient handling and mobility coordinators, VHA supervisory, and VHA management staff. At the VISN level: VISN safety staff. At the national level: VHA Occupational Safety and Health.”</P>
                <P>
                    The Categories of Records in the System section is being updated to remove Social Security number from #1. Being added to #2 is employee, contractor, volunteer, trainee. “Health officer” is added to #5 and “medical treatment beyond first aid” is added to #7. “8. Information required for filing a workers' compensation claim with the DoL Office of Workers' Compensation Programs (OWCP) under the Federal Employee Compensation Act (FECA), 5 U.S.C. 8101 
                    <E T="03">et seq.</E>
                     ASISTS does not contain, in whole or in part, workers' compensation claim forms filed under the FECA, any duplicates or copies of such documents, or any information that is derived from claim records” is being removed from #8 and replaced with “8. Forms attached to emails include information for the OSHA 301 form, OSHA 300 Log and VA Form 2162”. Being added is #9, Information required for annual occupational injury and illness data submission to the Bureau of Labor statistics including employee name, occupation, date of birth, date of hire, sex, and incident details.
                </P>
                <P>The Records Source Categories section will clarify that these are VA employees. This section is being updated to include “Information can also be provided by the ASISTS legacy system (previous system); ESIIP has replaced ASISTS.”</P>
                <P>Routine Uses of Records Maintained in the System section is being updated to clarify Routine Use #13 to state Federal Agencies, for Fraud and Abuse Preventing and Detecting: To other Federal agencies, such as CMS or USPS, to assist such agencies in preventing and detecting possible fraud or abuse by individuals in their operations and programs, such as detecting duplicate payments for care, or mail fraud related to delivery of VA medications.</P>
                <P>The following Routines Uses are being added:</P>
                <P>
                    <E T="03">Routine Use #14, “Data Breach Response and Remediation, for Another Federal Agency:</E>
                     To another Federal agency or Federal entity, when VA 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>
                    <E T="03">Routine Use #15, “Former Employee or Contractor, Representative, for Litigation Involving Individual:</E>
                     To a former VA employee or contractor, as well as the authorized representative of a current or former employee or contractor of VA, in pending or reasonably anticipated litigation against the individual regarding health care provided during the period of their employment or contract with VA.”
                </P>
                <P>The Policies and Practices for Storage of Records section is being updated to remove and replace, “Records are maintained magnetic tape, disk, or laser optical media with copies of back-up computer files maintained at off-site locations in most cases” with “Records are maintained on paper and stored into the VA Azure cloud.”</P>
                <P>The Policies and Practices for Retrieval of Records section is being updated to remove the Social Security number.</P>
                <P>The Policies and Practices for Retention and Disposal of Records section is being updated to remove, “At the current time, VA does not have records disposition authority for these records that has been approved by the Archivist of the United States. The System Manager has initiated action to seek and obtain such disposition authority in accordance with VA Handbook 6300.1, Records Management Procedures. The records will not be destroyed until VA obtains a National Archives and Records Administration (NARA) approved records disposition authority. Once VA has obtained NARA-approved records disposition authority, the agency will amend this notice to reflect that authority, and any destruction of electronic records will occur when no longer needed for administrative, legal, audit, or other operational purposes.” This section is being updated to include “General Records Schedule 2.7, item 020” at the end of the sentence “Records in this system are retained and disposed of in accordance with the schedule approved by the Archivist of the United States”.</P>
                <P>The Administrative, Technical and Physical Safeguards section is being updated to include #4. VA Enterprise Cloud data storage conforms to security protocols as stipulated in VA Directives 6500 and 6517 as a service cloud computing environment that has been authorized at the high-impact level under the Federal Risk and Authorization Management Program. Access control standards are stipulated in specific agreements with cloud vendors to restrict and monitor access. The secure site-to-site encrypted network connection is limited to access via the VA trusted internet connection.</P>
                <P>
                    The Record Access Procedures section is being amended to state, “Individuals seeking information on the existence and content of records in this system pertaining to them should contact the system manager in writing as indicated above or may write or visit the VA medical facility location where they normally receive their care. A request for access to records must contain the requester's full name, address, 
                    <PRTPAGE P="45880"/>
                    telephone number, be signed by the requester, and describe the records sought in sufficient detail to enable VA personnel to locate them with a reasonable amount of effort.”
                </P>
                <P>The Contesting Record Procedures section is being amended to state, “Individuals seeking to contest or amend records in this system pertaining to them should contact the system manager in writing as indicated above or may write or visit the VA medical facility location where they normally receive their care. A request to contest or amend records must state clearly and concisely what record is being contested, the reasons for contesting it, and the proposed amendment to the record.”</P>
                <P>The Notification Procedure section is being amended to state, “Generalized notice is provided by the publication of this notice. For specific notice, see Record Access Procedure, above.”</P>
                <P>The Report of Intent to Amend a System of Records Notice and an advance copy of the system notice have been sent to the appropriate Congressional committees and to the Director of the Office of Management and Budget (OMB) as required by 5 U.S.C. 552a(c) (Privacy Act) and guidelines issued by OMB (65 FR 77677), December 12, 2000.</P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>The Senior Agency Official for Privacy, or designee, approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. Eddie Pool, Assistant Secretary for Information and Technology and Chief Information Officer, Department of Veterans Affairs approved this document on September 12, 2025 for publication.</P>
                <SIG>
                    <DATED>Dated: July 17, 2026.</DATED>
                    <NAME>Stephanie Hotchkiss,</NAME>
                    <TITLE>Government Information Specialist, VA Privacy Service, Office of Information and Technology, Department of Veterans Affairs.</TITLE>
                </SIG>
                <PRIACT>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>“Performance Logic-Employee Safety Incident Investigation Platform (ESIIP) Records-VA” (99VA10)</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>Unclassified.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>Records are maintained electronically or on paper at Department of Veterans Affairs (VA) Medical Centers (address locations are listed in VA Appendix 1 of the biennial Privacy Act Issuance publication), Veterans Integrated Service Networks (VISN), and VA Data Processing Centers. Information from these records or copies of these records may be maintained by Performance Logic and the Veterans Health Administration (VHA) Central Office at 811 Vermont Avenue NW, Washington, DC, 20571. Records are also located at the VA Enterprise Cloud at participating servers in the United States.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>
                        Official responsible for policies and procedures: Director, VHA Office of Occupational Safety and Health, 
                        <E T="03">vhaoccsafetyandhealthaction@va.gov,</E>
                         811 Vermont Avenue NW, Washington, DC 20571.
                    </P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>5 U.S.C. Chapters 11, 31, 33,</P>
                    <P>43, 61, 63, and 83; 38 U.S.C. 501; 38 U.S.C. Chapter 74; 29 CFR 1960; 29 CFR 1904;</P>
                    <P>and 29 CFR 1910.1030.</P>
                    <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD>
                    <P>The records and information may be used for managing work-related injuries and illnesses by identifying, characterizing, and tracking occupational injuries and illnesses and the progress of injured or ill current and former employees, trainees, contractors, subcontractors, volunteers, and other individuals working with or performing services for VHA.</P>
                    <P>With respect to occupational safety, information regarding a workplace injury or illness, including the description of the incident, any correction action taken, results of any investigation, and recommendations for employees' safety and health, is entered into ESIIP by the supervisor of an injured or ill employee and/or the health and safety personnel of the facility. These records are used to identify specific incidents of work- related injuries and illnesses; track and evaluate services and medical care of injured or ill workers; and determine emerging causes, clusters of incidents, and outbreaks. In addition, VHA uses the information to identify system-wide problems and opportunities for focused education; evaluate through statistical analysis the effectiveness of health and safety systems; develop and manage the planning, distribution, and utilization of resources; and support further research in the area of occupational medicine. Some of these data are then compiled for reporting to the Occupational Safety and Health Administration (OSHA) of the Department of (DoL), in accordance with 29 CFR part 1960. Further, the records may be used by institutional members of an accident review board or an incident review board, a multidisciplinary group of health and safety professionals and representatives from human resources, safety, occupational health, and unions/labor representatives and infection control to determine root causes of injuries and illnesses; and by VA hospitals and regional offices, VA Central Office, and the VA Office of the Inspector General for audits, reviews, and investigations of such events.</P>
                    <P>The records will be used to identify specific cases of work-related injuries and illnesses; track and evaluate medical care of and services provided to injured or ill workers, and determine emerging causes, clusters of incidents, and outbreaks. The records will also be used to identify system-wide problems and opportunities for focused education and intervention; evaluate the effectiveness of health and safety systems performance, especially after interventions, through statistical analysis; to develop and manage the planning, distribution, and utilization of resources; and support further research in the area of occupational medicine. The data may also be used for the review of root causes of injuries, for audits, reviews, and investigations of incidents involving workplace injuries and illnesses.</P>
                    <P>Data may be accessed locally, at the VISN level and Program Office level through Performance Logic directly. Nationally, data may be accessed through the rolled-up master file and data use agreements with the System Manager.</P>
                    <P>ESIIP users are at the facility, VISN and national level. At the facility level: safety and occupational health staff and safe patient handling and mobility coordinators, VHA supervisory, and VHA management staff. At the VISN level: VISN safety staff. At the national level: VHA Occupational Safety and Health.</P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>The records include information concerning current and former employees, trainees, contractors, subcontractors, volunteers, and other individuals working with or performing services for VA. For the purpose of this system of records, these individuals are characterized collectively as employees.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>The records in this system include:</P>
                    <P>1. Personal identifiers, including the injured or ill employee's name, date of birth, age, and sex;</P>
                    <P>
                        2. Residential and professional contact data, including home and/or 
                        <PRTPAGE P="45881"/>
                        mailing address, home telephone number, emergency contact information, personnel status (
                        <E T="03">i.e.</E>
                         employee, contractor, volunteer, trainee), and duty station;
                    </P>
                    <P>3. Employment information, including personnel status, occupation, grade and step, date of hire, and station number;</P>
                    <P>4. Information about injuries and illnesses attributed to work, including the location of injury, cause, severity, type of injury, body parts affected, risk, and contributing factors;</P>
                    <P>5. Information from reviews and investigation of incidents conducted by the employee's supervisor and the safety personnel of that facility, including any corrective actions taken by the supervisor and the findings of the health officer;</P>
                    <P>6. Abstract information, including environmental and epidemiological registries, studies of effectiveness of health and safety systems, and further research in the area of occupational medicine;</P>
                    <P>7. Information required for reporting to OSHA of DoL, including the name of the treating physician or other health care professional, hospitalization, medical treatment beyond first aid, safety device;</P>
                    <P>8. Forms attached to emails include information for the OSHA 301 form, OSHA 300 Log and VA Form 2162; and</P>
                    <P>9. Information required for annual occupational injury and illness data submission to the Bureau of Labor Statistics, including employee name, occupation, date of birth, date of hire, sex, and incident details.</P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>Information in this system of records is provided by VA employees, trainees, contractors, subcontractors, volunteers, and other affected individuals; supervisors; health and safety professionals at facilities; clinical personnel; workers' compensation personnel; and human resources staff. Information can also be provided by the ASISTS legacy system (previous system); ESIIP has replaced ASISTS.</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>1. Law Enforcement, for Reporting Violations of Law: To a Federal, state, local, territorial, tribal, or foreign law enforcement authority or other appropriate entity charged with the responsibility of investigating or prosecuting such violation or charged with enforcing or implementing such law, provided that the disclosure is limited to information that, either alone or in conjunction with other information, indicates a violation or potential violation of law, whether civil, criminal, or regulatory in nature. The disclosure of the names and addresses of Veterans and their dependents from VA records under this routine use must also comply with the provisions of 38 U.S.C. 5701(f).</P>
                    <P>2. Congress: 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>3. National Archives and Records Administration (NARA): To NARA in records management inspections conducted under 44 U.S.C. 2904 and 2906, or other functions authorized by laws and policies governing NARA operations and VA records management responsibilities.</P>
                    <P>Department of Justice (DoJ) for Litigation or Administrative Proceeding: To the DoJ, or in a proceeding before a court, adjudicative body, or other administrative body before which VA is authorized to appear, when any of the following is a party to such proceedings or has an interest in such proceedings, and VA determines that use of such records is relevant and necessary to the proceedings:</P>
                    <P>(a) VA or any component thereof;</P>
                    <P>(b) Any VA employee in his or her official capacity;</P>
                    <P>(c) Any VA employee in his or her official capacity where DoJ has agreed to represent the employee; or</P>
                    <P>(d) The United States, where VA determines that litigation is likely to affect the agency or any of its components.</P>
                    <P>4. The Joint Commission, for Accreditation: To survey teams of the Joint Commission, College of American Pathologists, American Association of Blood Banks, and similar national accreditation agencies or boards with which VA has a contract or agreement to conduct such reviews, as relevant and necessary for the purpose of program review or the seeking of accreditation or certification.</P>
                    <P>5. Merit Systems Protection Board (MSPB): To the MSPB in connection with appeals, special studies of the civil service and other merit systems, review of rules and regulations, investigation of alleged or possible prohibited personnel practices, and such other functions promulgated in 5 U.S.C. 1205 and 1206, or as authorized by law.</P>
                    <P>6. Equal Employment Opportunity Commission (EEOC): To the EEOC in connection with investigations of alleged or possible discriminatory practices, examination of Federal affirmative employment programs, or other functions of the Commission as authorized by law.</P>
                    <P>Federal Labor Relations Authority (FLRA): To the FLRA in connection with the investigation and resolution of allegations of unfair labor practices, the resolution of exceptions to arbitration awards when a question of material fact is raised; matters before the Federal Service Impasses Panel; and the investigation of representation petitions and the conduct or supervision of representation elections.</P>
                    <P>7. Contractors: To contractors, grantees, experts, consultants, students, and others performing or working on a contract, service, grant, cooperative agreement, or other assignment for VA, when reasonably necessary to accomplish an agency function related to the records.</P>
                    <P>8. Unions: To labor unions operating at the facility level as members of institutional review boards, also known as accident review boards, to review root causes of injuries.</P>
                    <P>9. DoL: To the DoL for the electronic filing of workers compensation claims, as provided by 5 U.S.C. 8121.</P>
                    <P>10. Data Breach Response and Remediation, for VA: To appropriate agencies, entities, and persons when (1) VA suspects or has confirmed that there has been a breach of the system of records; (2) VA has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, VA (including its information systems, programs, and operations), the Federal Government, or national security; and (3) the disclosure made to such agencies, entities, or persons is reasonably necessary to assist in connection with VA efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.</P>
                    <P>11. Federal Agencies, for Preventing and Detecting Fraud and Abuse: To other Federal agencies, such as CMS or USPS, to assist such agencies in preventing and detecting possible fraud or abuse by individuals in their operations and programs, such as detecting duplicate payments for care, or mail fraud related to delivery of VA medications.</P>
                    <P>
                        12. Data Breach Response and Remediation, for Another Federal Agency: To another Federal agency or Federal entity, when VA 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 
                        <PRTPAGE P="45882"/>
                        entity (including its information systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.
                    </P>
                    <P>13. Former Employee or Contractor, Representative, for Litigation Involving Individual: To a former VA employee or contractor, as well as the authorized representative of a current or former employee or contractor of VA, in pending or reasonably anticipated litigation against the individual regarding health care provided during the period of their employment or contract with VA.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>Records are maintained on paper and electronically. The records and backup records are stored in the VA Azure Cloud.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>Records are retrieved</P>
                    <P>by name or other assigned identifiers of the individuals on whom they are maintained.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>Records in this system are retained and disposed of in accordance with the schedule approved by the Archivist of the United States, General Records Schedule 2.7, item 020. Records in this system are retained and disposed of in accordance with the schedule approved by the Archivist of the United States.</P>
                    <HD SOURCE="HD2">ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:</HD>
                    <P>Access to VA working space and record storage areas is restricted to VA employees on a “need-to-know” basis. Generally, VA file areas are locked after normal duty hours and are protected from outside access by the Federal Protective Service. Strict control measures are enforced to ensure that disclosure is limited to a “need to know” basis.</P>
                    <P>1. Access to records maintained at facilities, VA Headquarters, and VISN offices is restricted to VA employees who have a need for the information in the performance of their official duties. Access to information stored on automated storage media is controlled by individually unique passwords/codes that must be changed periodically by the employee. Authorized VA employees at remote locations including VA health care facilities may access information stored in the computer. Access is controlled by individually unique passwords/codes. Records are maintained in manned rooms during nonworking hours. The facilities are protected from outside access during working hours by security personnel.</P>
                    <P>2. Access to information that populates workers' compensation claim forms submitted to DOL is accessible to only the employee filing the claim, his or her supervisor, and the workers' compensation personnel of the facility.</P>
                    <P>3. VA Enterprise Cloud data storage conforms to security protocols as stipulated in VA Directives 6500 and 6517 as a service cloud computing environment that has been authorized at the high-impact level under the Federal Risk and Authorization Management Program. Access control standards are stipulated in specific agreements with cloud vendors to restrict and monitor access. The secure site-to-site encrypted network connection is limited to access via the VA trusted internet connection.</P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>Individuals seeking information on the existence and content of records in this system pertaining to them should contact the System Manager in writing as indicated above or write or visit the VA facility location where they normally receive their care. A request for access to records must contain the requester's full name, address, and telephone number, be signed by the requester, and describe the records sought in sufficient detail to enable VA personnel to locate them with a reasonable amount of effort.</P>
                    <HD SOURCE="HD2">CONTESTING RECORD PROCEDURES:</HD>
                    <P>Individuals seeking to contest or amend records in this system pertaining to them should contact the System Manager in writing as indicated above or may write or visit the VA facility location where they normally receive their care. A request to contest or amend records must state clearly and concisely what record is being contested, the reasons for contesting it, and the proposed amendment to the record.</P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>Individuals who wish to be notified if a record in this system of records pertains to them should submit the request following the procedures described in “Record Access Procedures,” above.</P>
                    <HD SOURCE="HD2">EXEMPTIONS PROMULGATED FOR THE SYSTEM:</HD>
                    <P>None.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>74 FR 14613 (March 31, 2009).</P>
                </PRIACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2026-14662 Filed 7-20-26; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8320-01-P</BILCOD>
        </NOTICE>
    </NOTICES>
    <VOL>91</VOL>
    <NO>138</NO>
    <DATE>Tuesday, July 21, 2026</DATE>
    <UNITNAME>Proposed Rules</UNITNAME>
    <NEWPART>
        <PTITLE>
            <PRTPAGE P="45883"/>
            <PARTNO>Part II</PARTNO>
            <AGENCY TYPE="P"> Securities and Exchange Commission</AGENCY>
            <CFR>17 CFR Parts 240, 270, and 303</CFR>
            <TITLE> Electronic Delivery of Information Under the Federal Securities Laws; Proposed Rule</TITLE>
        </PTITLE>
        <PRORULES>
            <PRORULE>
                <PREAMB>
                    <PRTPAGE P="45884"/>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <CFR>17 CFR Parts 240, 270, and 303</CFR>
                    <DEPDOC>[Release No. 33-11430; 34-105921; 39-2564; IA-6980; IC-36252; File No. S7-2026-25]</DEPDOC>
                    <RIN>RIN 3235-AN57</RIN>
                    <SUBJECT>Electronic Delivery of Information Under the Federal Securities Laws</SUBJECT>
                    <AGY>
                        <HD SOURCE="HED">AGENCY:</HD>
                        <P>Securities and Exchange Commission.</P>
                    </AGY>
                    <ACT>
                        <HD SOURCE="HED">ACTION:</HD>
                        <P>Proposed rule.</P>
                    </ACT>
                    <SUM>
                        <HD SOURCE="HED">SUMMARY:</HD>
                        <P>The Securities and Exchange Commission (the “SEC” or the “Commission”) is proposing Regulation E-Delivery. The proposed rule sets forth conditions for covered entities to deliver covered information to covered recipients electronically without first obtaining their affirmative consent. The proposed rule further establishes conditions under which the Commission would consider delivery requirements under the Federal securities laws to be satisfied by electronic delivery. The Commission also is proposing to rescind the rule providing alternative means for registered investment companies to satisfy shareholder report transmission requirements, and to amend rules addressing the dissemination of proxy materials and tender offer materials.</P>
                    </SUM>
                    <EFFDATE>
                        <HD SOURCE="HED">DATES:</HD>
                        <P>
                            This proposal was published in the 
                            <E T="04">Federal Register</E>
                             on July 21, 2026. Comments should be received on or before September 21, 2026.
                        </P>
                    </EFFDATE>
                    <ADD>
                        <HD SOURCE="HED">ADDRESSES:</HD>
                        <P>Comments may be submitted by any of the following methods:</P>
                    </ADD>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/comments/s7-2026-25/electronic-delivery-information-under-federal-securities-laws</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov</E>
                        . Please include File Number S7-2026-25 in the subject line;
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to File Number S7-2026-25. 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 website (
                        <E T="03">https://www.sec.gov/rules-regulations/public-comments/s7-2026-25</E>
                        ). Do not include personally 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. Studies, memoranda, or other substantive items may be added by the Commission or staff to the comment file during this rulemaking. A notification of the inclusion in the comment file of any such materials will be made available on the Commission's website. To ensure direct electronic receipt of such notifications, sign up through the “Stay Connected” option at 
                        <E T="03">www.sec.gov</E>
                         to receive notifications by email.
                    </FP>
                    <P>
                        A summary of the proposal of not more than 100 words is posted on the Commission's website (
                        <E T="03">https://www.sec.gov/rules-regulations/2026/07/s7-2026-25</E>
                        ).
                    </P>
                    <FURINF>
                        <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                        <P>Andrew Deglin, Pamela Ellis, and Sam Thomas, Senior Counsels; Ted Uliassi, Branch Chief; Amanda Hollander Wagner, Senior Special Counsel; Brian McLaughlin Johnson and Robert Holowka, Assistant Directors, Rulemaking Office, Division of Investment Management, (202) 551-6792 or (202) 551-6787; Laura McKenzie, Special Counsel, or Christina Chalk, Associate Chief, in the Office of Mergers and Acquisitions, (202) 551-3440; Kasey Levit, Special Counsel, or Heather Maples, Senior Special Counsel, in the Office of Chief Counsel, (202) 551-3500, Division of Corporation Finance; Emily Hellman and Leah Levi, Special Counsels; Meredith MacVicar, Senior Special Counsel; Kelly Shoop, Branch Chief; Lourdes Gonzalez, Assistant Chief Counsel, Office of Chief Counsel, Division of Trading and Markets, (202) 551-5550; Kevin Schopp, Senior Special Counsel, Office of Clearance and Settlement, Division of Trading and Markets, (202) 551-5550, Securities and Exchange Commission, 100 F Street NE, Washington, DC, 20549.</P>
                    </FURINF>
                </PREAMB>
                <SUPLINF>
                    <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                    <P>The Commission is proposing to amend or add the following rules and forms:</P>
                    <GPOTABLE COLS="3" OPTS="L2,nj,tp0,i1" CDEF="s100,r50,r50">
                        <TTITLE> </TTITLE>
                        <BOXHD>
                            <CHED H="1">Commission reference</CHED>
                            <CHED H="1">Name</CHED>
                            <CHED H="1">17 CFR citation</CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Securities Exchange Act of 1934</ENT>
                            <ENT>Rule 14a-1</ENT>
                            <ENT>§ 240.14a-1.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14a-2</ENT>
                            <ENT>§ 240.14a-2.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14a-3</ENT>
                            <ENT>§ 240.14a-3.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Ruel 14a-5</ENT>
                            <ENT>§ 240.14a-5.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14a-7</ENT>
                            <ENT>§ 240.14a-7.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14a-13</ENT>
                            <ENT>§ 240.14a-13.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14a-16</ENT>
                            <ENT>§ 240.14a-16.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14a-101</ENT>
                            <ENT>§ 240.14a-101.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14b-1</ENT>
                            <ENT>§ 240.14b-1.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14b-2</ENT>
                            <ENT>§ 240.14b-2.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14c-1</ENT>
                            <ENT>§ 240.14c-1.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14c-2</ENT>
                            <ENT>§ 240.14c-2.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14c-3</ENT>
                            <ENT>§ 240.14c-3.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14c-4</ENT>
                            <ENT>§ 240.14c-4.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14c-7</ENT>
                            <ENT>§ 240.14c-7.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14c-101</ENT>
                            <ENT>§ 240.14c-101.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 14d-5</ENT>
                            <ENT>§ 240.14d-5.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="22"> </ENT>
                            <ENT>Rule 17a-3</ENT>
                            <ENT>§ 240.17a-3.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Investment Company Act of 1940</ENT>
                            <ENT>Rule 30e-3</ENT>
                            <ENT>§ 270.30e-3.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Regulation E-Delivery (17 CFR 303.100 through 303.104)</ENT>
                            <ENT>Regulation E-Delivery</ENT>
                            <ENT>§§ 303.100 through 303.104.</ENT>
                        </ROW>
                    </GPOTABLE>
                    <PRTPAGE P="45885"/>
                    <HD SOURCE="HD1">Table of Contents</HD>
                    <EXTRACT>
                        <FP SOURCE="FP-2">I. Introduction and Background</FP>
                        <FP SOURCE="FP1-2">A. Current Commission Approach Regarding the Use of Electronic Media</FP>
                        <FP SOURCE="FP1-2">B. Information About E-Delivery Preferences</FP>
                        <FP SOURCE="FP1-2">C. Other Developments Informing the Commission's Approach to Delivering Information</FP>
                        <FP SOURCE="FP1-2">D. Overview of Proposed New E-Delivery Framework</FP>
                        <FP SOURCE="FP-2">II. Discussion</FP>
                        <FP SOURCE="FP1-2">A. Considerations and Goals Informing Proposed E-Delivery Approach</FP>
                        <FP SOURCE="FP1-2">B. E-Delivery Methods and Requirements</FP>
                        <FP SOURCE="FP1-2">1. General Use and Scope of Proposed Rule</FP>
                        <FP SOURCE="FP1-2">2. Disclosure of E-Delivery</FP>
                        <FP SOURCE="FP1-2">3. Delivery of Statement of Availability of Covered Information to an Electronic Address</FP>
                        <FP SOURCE="FP1-2">4. Direct Delivery of Covered Information that Does Not Include Personal Financial Information to an Electronic Address</FP>
                        <FP SOURCE="FP1-2">5. Delivery of Covered Information that Includes PFI</FP>
                        <FP SOURCE="FP1-2">6. Timing, Form, and Manner of E-Delivery</FP>
                        <FP SOURCE="FP1-2">7. Obligation of Covered Entities to Provide Paper Copies of Covered Information and Permit Opting Out of E-Delivery</FP>
                        <FP SOURCE="FP1-2">8. Updates to Electronic Address and Choice of Type of Electronic Address</FP>
                        <FP SOURCE="FP1-2">9. Identifying and Remediating E-Delivery Failures</FP>
                        <FP SOURCE="FP1-2">C. Requirements for website Availability of Covered Information</FP>
                        <FP SOURCE="FP1-2">D. Special Provision for Covered Recipients Receiving Paper: Required Notices and Transition Process for Default Electronic Delivery</FP>
                        <FP SOURCE="FP1-2">1. Scope of Application and Transition Process for Default E-Delivery</FP>
                        <FP SOURCE="FP1-2">2. Required Notices During the Transition Process</FP>
                        <FP SOURCE="FP1-2">E. E-SIGN Act</FP>
                        <FP SOURCE="FP1-2">F. Amendments to Current Commission Rules to Facilitate Proposed E-Delivery Approach</FP>
                        <FP SOURCE="FP1-2">1. Rescission of Rule Addressing internet Availability of Fund Shareholder Reports</FP>
                        <FP SOURCE="FP1-2">2. Amendments to Requirements for the Dissemination of Proxy Materials and Tender Offer Materials</FP>
                        <FP SOURCE="FP1-2">G. Existing Commission Guidance</FP>
                        <FP SOURCE="FP1-2">H. Compliance Period</FP>
                        <FP SOURCE="FP-2">III. Economic Analysis</FP>
                        <FP SOURCE="FP1-2">A. Introduction</FP>
                        <FP SOURCE="FP1-2">B. Baseline and Affected Parties</FP>
                        <FP SOURCE="FP1-2">1. Guidance and Existing Regulations Governing Use of Electronic Media</FP>
                        <FP SOURCE="FP1-2">2. Affected Parties</FP>
                        <FP SOURCE="FP1-2">3. External Studies</FP>
                        <FP SOURCE="FP1-2">C. Benefits and Costs</FP>
                        <FP SOURCE="FP1-2">1. Benefits</FP>
                        <FP SOURCE="FP1-2">2. Costs</FP>
                        <FP SOURCE="FP1-2">3. Monetized Benefits and Costs</FP>
                        <FP SOURCE="FP1-2">D. Effects on Efficiency, Competition and Capital Formation</FP>
                        <FP SOURCE="FP1-2">E. Reasonable Alternatives</FP>
                        <FP SOURCE="FP1-2">1. Charging for Paper Delivery</FP>
                        <FP SOURCE="FP1-2">2. Additional Paper Notices Following Transition to Default E-Delivery</FP>
                        <FP SOURCE="FP1-2">3. Access Equals Delivery Approach to E-Delivery</FP>
                        <FP SOURCE="FP1-2">4. Alternative Notice and Access Approach To E-Delivery (Permitting Paper Notice)</FP>
                        <FP SOURCE="FP1-2">5. Alternatives to Proposed Definition of PFI and Requirements Regarding E-Delivery of Covered Information Containing PFI</FP>
                        <FP SOURCE="FP1-2">6. Alternatives to Proposed Transition Process</FP>
                        <FP SOURCE="FP1-2">7. Alternatives for Smaller Covered Entities</FP>
                        <FP SOURCE="FP1-2">F. Request for Comment</FP>
                        <FP SOURCE="FP-2">IV. Paperwork Reduction Act Analysis</FP>
                        <FP SOURCE="FP1-2">A. Reg E-Delivery: Disclosure of Electronic Delivery</FP>
                        <FP SOURCE="FP1-2">B. Reg E-Delivery: E-Delivery Methods</FP>
                        <FP SOURCE="FP1-2">C. Reg E-Delivery: Delivery of Covered Information in Paper on Request</FP>
                        <FP SOURCE="FP1-2">D. Reg E-Delivery: Identifying and Remediating E-Delivery Failures</FP>
                        <FP SOURCE="FP1-2">E. Reg E-Delivery: Requirements for website Availability of Covered Information</FP>
                        <FP SOURCE="FP1-2">F. Reg E-Delivery: Initial and Follow-Up Notices</FP>
                        <FP SOURCE="FP1-2">G. Reg E-Delivery: Aggregate Paperwork Reduction Act Burden</FP>
                        <FP SOURCE="FP1-2">H. Rule 30e-3</FP>
                        <FP SOURCE="FP1-2">I. Regulations 14A and 14C and Rule 14d-5</FP>
                        <FP SOURCE="FP1-2">J. Request for Comment</FP>
                        <FP SOURCE="FP-2">V. Initial Regulatory Flexibility Analysis</FP>
                        <FP SOURCE="FP1-2">A. Reasons for and Objectives of the Proposed Actions</FP>
                        <FP SOURCE="FP1-2">B. Legal Basis</FP>
                        <FP SOURCE="FP1-2">C. Small Entities Subject to the Proposed Rule</FP>
                        <FP SOURCE="FP1-2">D. Projected Reporting, Recordkeeping, and Other Compliance Requirements</FP>
                        <FP SOURCE="FP1-2">E. Duplicative, Overlapping, or Conflicting Federal Rules</FP>
                        <FP SOURCE="FP1-2">F. Significant Alternatives</FP>
                        <FP SOURCE="FP1-2">G. General Request for Comment</FP>
                        <FP SOURCE="FP-2">VI. Congressional Review Act</FP>
                        <FP SOURCE="FP-2">VII. Other Matters</FP>
                        <FP SOURCE="FP-2">Statutory Authority</FP>
                    </EXTRACT>
                    <HD SOURCE="HD1">I. Introduction and Background</HD>
                    <P>
                        The Commission is proposing Regulation E-Delivery (“Reg E-Delivery” or the “proposed rule”). If it is adopted, issuers and market intermediaries, among others, that comply with the conditions of Reg E-Delivery would be assured that they have satisfied, through the use of electronic delivery (“e-delivery”), applicable requirements to deliver required disclosures, reports, and other regulatory materials under the Federal securities laws.
                        <SU>1</SU>
                        <FTREF/>
                         Reg E-Delivery would not require obtaining affirmative consent from investors and others before using e-delivery. Currently, many required regulatory disclosures and reports under the Federal securities laws typically are delivered in paper, unless the person with a right to receive these disclosures and reports affirmatively elects otherwise. If adopted as proposed, Reg E-Delivery generally would supersede the Commission's current approach in its E-Delivery Guidance, which is based largely on an “opt-in” approach to e-delivery.
                        <SU>2</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             Reg E-Delivery, if it is adopted, would be codified at 17 CFR 303.100-104. This release generally uses the term “e-delivery” unless the context would more appropriately require “electronic delivery” (in particular, referencing specific provisions of proposed Reg E-Delivery that use the term “electronic delivery”). Reg E-Delivery would address only the procedural aspects under the Federal securities laws of electronic delivery, and, except as provided in the proposed rule, would not otherwise affect the rights and responsibilities of any party under the Federal securities laws. 
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">infra</E>
                             footnote 3, at text accompanying n.11.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             If adopted as proposed, Reg E-Delivery would supersede the 1995 Guidance and 1996 Guidance in their entirety, with certain principles from these releases reaffirmed in any release adopting Reg E-Delivery. We anticipate that we would retain the majority of the 2000 Guidance, and only certain sections and examples would be superseded by Reg E-Delivery. 
                            <E T="03">See infra</E>
                             footnote 3 and section II.G.
                        </P>
                    </FTNT>
                    <P>
                        The Commission has long appreciated that using electronic media to deliver regulatory information may enhance a recipient's ability to access, research, and analyze this information as well as provide issuers, market intermediaries, and others with a rapid, cost-efficient, widespread, and secure delivery method.
                        <SU>3</SU>
                        <FTREF/>
                         Our proposal draws on the Commission's experience of more than 30 years with the use of electronic media to provide investors and others with information. Our proposal also reflects the significant advances in electronic communication technologies and the increased adoption of those technologies, particularly following the COVID-19 pandemic, that have occurred since the Commission's initial publication of guidance on the use of electronic media to deliver required regulatory documents and reports.
                        <SU>4</SU>
                        <FTREF/>
                         These advances and adoptions include, among others, the breadth of means through which individuals can now access data, such as through smartphones and tablets; and the growth of cloud storage of data (in turn increasing the data that is available online). More recently, particularly in the financial industry, these advances and potential technological breakthroughs also include, among others, the use of artificial intelligence (“AI”); the use of blockchain technology 
                        <PRTPAGE P="45886"/>
                        in connection with securities offerings and the transfer of shares; and the issuance, custody and trading of assets that are issued or transferred using distributed ledger technology.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Use of Electronic Media for Delivery Purposes, Investment Company Act Release No. 21399 (Oct. 6, 1995) [60 FR 53458 (Oct. 13, 1995)] (“1995 Guidance”) (stating that the Commission believes that the use of electronic media should be at least an equal alternative to the use of paper-based media, and accordingly, issuer or third-party information that can be delivered in paper under the Federal securities laws may be delivered in electronic format); Use of Electronic Media by Broker-Dealers, Transfer Agents, and Investment Advisers for Delivery of Information, Investment Company Act Release No. 21945 (May 9, 1996) [61 FR 24644 (May 15, 1996)] (“1996 Guidance”); Use of Electronic Media, Investment Company Act Release No. 24426 (Apr. 28, 2000) [65 FR 25843 (May 4, 2000)] (“2000 Guidance”) (1995 Guidance, 1996 Guidance, and 2000 Guidance, collectively “E-Delivery Guidance”); 
                            <E T="03">see also infra</E>
                             section I.B.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             
                            <E T="03">See infra</E>
                             section I.B.
                        </P>
                    </FTNT>
                    <P>
                        In light of these developments, diverse financial industry stakeholders have suggested through multiple channels, including in response to Commission rulemakings, that the Commission consider updating the current e-delivery framework.
                        <SU>5</SU>
                        <FTREF/>
                         After considering their suggestions, which we discuss in more detail below, we are proposing a new rule that reflects the preferences of many individuals and other recipients of information. Proposed Reg E-Delivery would set forth conditions for delivering information electronically without first obtaining recipients' affirmative consent, while providing the ability to “opt out” of e-delivery and promptly receive regulatory disclosures and reports in paper, free of charge.
                    </P>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             
                            <E T="03">See infra</E>
                             sections I.B and I.C.
                        </P>
                    </FTNT>
                    <P>
                        Proposed Reg E-Delivery also would establish conditions under which the Commission would consider delivery requirements under the Federal securities laws to have been satisfied by e-delivery. These conditions reflect our understanding of common e-delivery practices, while providing flexibility to accommodate others that may arise. They are also designed to help ensure that materials are delivered in a user-friendly format while also protecting personal financial information.
                        <SU>6</SU>
                        <FTREF/>
                         The proposed conditions furthermore are designed to provide relevant and consistent information about the process to opt out of e-delivery, receive paper copies of covered information upon request, and update one's electronic address (all free of charge). This would help ensure that investors and other recipients receive information in their preferred format, particularly in view of the default e-delivery approach under the proposed rule. We recognize that these conditions may differ from how some firms currently deliver materials electronically, the terms of which are often set forth in account agreements or otherwise by contract.
                        <SU>7</SU>
                        <FTREF/>
                         To the extent those firms wish to rely on Reg E-Delivery to deliver information using e-delivery, they will need to alter certain of their e-delivery practices to align with the conditions imposed by Reg E-Delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             
                            <E T="03">See infra</E>
                             section I.B. We understand, for example, that some current e-delivery methods may require the recipient to use multiple “clicks” to access information online, which may make it challenging for that recipient to access information easily. We also understand that investors and others may have concerns about the security of regulatory disclosures and reports that contain personal financial information being delivered using e-delivery. 
                            <E T="03">See infra</E>
                             sections II.B.3 and II.B.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             
                            <E T="03">See infra</E>
                             section III.B.1 (comparing the proposed conditions to the E-Delivery Guidance).
                        </P>
                    </FTNT>
                    <P>The Commission also is proposing to rescind rule 30e-3 under the Investment Company Act of 1940 (the “Investment Company Act”) and to amend certain rules in Regulations 14A and 14C and rule 14d-5 under the Securities Exchange Act of 1934 (the “Exchange Act”) to facilitate, and promote consistency with, the proposed new e-delivery framework.</P>
                    <P>The proposal is expected to provide cost savings to issuers, market intermediaries, and ultimately investors and others who receive regulatory information, by permitting those who elect to rely on Reg E-Delivery to provide required regulatory disclosures and reports by e-delivery as the default delivery option. We anticipate that this aspect of the proposal could be more cost-effective and efficient than providing paper delivery to those who do not otherwise express a preference for paper delivery. The proposal also is designed to encourage the benefits that increased e-delivery would bring to recipients of regulatory information, for example through increased accessibility, security, and the opportunity for a more engaging experience with disclosure.</P>
                    <HD SOURCE="HD2">A. Current Commission Approach Regarding the Use of Electronic Media</HD>
                    <P>
                        Recognizing that the Federal securities laws generally do not prescribe the particular medium (
                        <E T="03">i.e.,</E>
                         in paper format) by which regulatory disclosures and reports are to be delivered, the Commission historically has addressed the use of e-delivery through interpretative guidance.
                        <SU>8</SU>
                        <FTREF/>
                         Through the Commission's E-Delivery Guidance, the Commission discussed the three factors—notice, access, and evidence of delivery—that issuers and certain market intermediaries using e-delivery should consider as they assess their compliance with the delivery requirements under the Federal securities laws.
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section I (explaining that “[t]he federal securities statutes do not prescribe the medium to be used for providing information by or on behalf of issuers, or by or on behalf of third parties with respect to issuers”); 1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section II (providing guidance intended for broker-dealers, transfer agents, and investment advisers in using electronic media to satisfy delivery requirements under the Federal securities laws).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             
                            <E T="03">See</E>
                             E-Delivery Guidance, 
                            <E T="03">supra</E>
                             footnote 3.
                        </P>
                    </FTNT>
                    <P>
                        • 
                        <E T="03">Notice:</E>
                         This factor reflects the extent to which an electronic communication provides timely and adequate notice that information is available electronically.
                    </P>
                    <P>
                        • 
                        <E T="03">Access:</E>
                         This factor reflects the principle that the recipient of regulatory information should be able to access information electronically in a format that is comparable to what would have been provided in paper format, and the means to access that information should not be so burdensome that the intended recipient cannot effectively access it.
                    </P>
                    <P>
                        • 
                        <E T="03">Evidence of delivery:</E>
                         This factor reflects the principle that the issuer or market intermediary should have reason to believe that delivery of information electronically has resulted or would result in satisfaction of the delivery requirements under the Federal securities laws.
                    </P>
                    <P>
                        In each E-Delivery Guidance release, the Commission provided a non-exclusive and non-exhaustive series of examples to illustrate how these concepts apply to specific facts and circumstances. These examples were designed in part to apply the notice, access, and evidence of delivery framework to different types of communications and methods of e-delivery, and in the context of different relationships between the individual receiving the communication and the issuer or market intermediary sending the communication. In each release, the Commission also expressed its views on the use of informed consent as a way to satisfy the “evidence of delivery” factor, including when procedures incorporating informed consent would be necessary to satisfy evidence of delivery, and what actions an issuer or intermediary would need to take to obtain informed consent.
                        <SU>10</SU>
                        <FTREF/>
                         Because of the guidance regarding informed consent, issuers and market intermediaries generally deliver regulatory documents and reports in paper format unless the recipient consents or “opts in” to e-delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Informed consent generally requires that the investor agrees, given notice and access, to accept delivery of a regulatory disclosure or report electronically, instead of by paper. 
                            <E T="03">See, e.g.,</E>
                            1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.29 and accompanying text; 2000 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section II.A.1 (providing guidance regarding informed consent obtained telephonically).
                        </P>
                    </FTNT>
                    <P>
                        In the E-Delivery Guidance, the Commission stated that an issuer or market intermediary that structures its delivery in accordance with the principles and examples set forth in those releases could be assured that it was satisfying its delivery obligations under the Federal securities laws. Nevertheless, the Commission recognized that an issuer or market intermediary could develop a method of e-delivery that differs from the principles and examples that also could 
                        <PRTPAGE P="45887"/>
                        satisfy delivery obligations under the Federal securities laws.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section II.B.
                        </P>
                    </FTNT>
                    <P>
                        Since the publication of the E-Delivery Guidance, the Commission has continued to explore how e-delivery could be used by issuers and market intermediaries to improve their ability to communicate with investors and others, as well as how electronic media could be used to enhance required disclosure.
                        <SU>12</SU>
                        <FTREF/>
                         Over the past twenty-plus years, the Commission also has addressed disclosure approaches involving electronic media in discrete contexts involving standardized documents—including the development of concise, layered disclosure and overlays to that disclosure, such as calculators, hover-over or pop-up information, and interactive features to customize disclosure—without changing the general framework discussed in the E-Delivery Guidance.
                        <SU>13</SU>
                        <FTREF/>
                         The adoption of these disclosure approaches reflected the Commission's acknowledgement of the potential benefits of using electronic media to deliver regulatory information, as well as interest in harnessing the power of technological advances to provide better access to information.
                        <SU>14</SU>
                        <FTREF/>
                         Further, in releases recognizing that many Americans have demonstrated a growing preference for consuming information through electronic media as the use of the internet has grown, the Commission has sought information about the use of the internet to communicate and find information about fund investments.
                        <SU>15</SU>
                        <FTREF/>
                         In addition, cognizant of the experiences of investors, issuers, intermediaries, and other entities during the COVID-19 pandemic that illustrated some disadvantages and risks of reliance on delivery of regulatory disclosure documents and reports solely in paper, the Commission and its staff provided temporary emergency relief to market participants from various requirements under the Federal securities laws, including paper delivery requirements.
                        <SU>16</SU>
                        <FTREF/>
                         We understand that disclosure approaches involving e-delivery have provided cost savings to issuers, market intermediaries, and ultimately to investors and other recipients of regulatory information.
                        <SU>17</SU>
                        <FTREF/>
                         Meanwhile, the Commission, as well as the current Chairman of the Commission, have signaled their interest in initiatives that would foster and harness the benefits of electronic media, and other innovative new technologies for investors.
                        <SU>18</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Meanwhile, staff has observed that, in the decades following the publication of the E-Delivery Guidance, a number of examples in the guidance have become technologically outdated. 
                            <E T="03">See, e.g.,</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at Example 4 (discussing, in part, consent to delivery using a floppy disk).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Securities Offering Reform, Securities Act Release No. 8591 (July 19, 2005) [70 FR 44721 (Aug. 3, 2005)] (in part, adopting an “access equals delivery” model for the delivery of final prospectuses, subject to certain conditions) (“Securities Offering Reform Adopting Release”); internet Availability of Proxy Materials, Securities Exchange Act Release No. 55146 (Jan. 22, 2007) [72 FR 4148 (Jan. 29, 2007)] (“E-Proxy Adopting Release”); Enhanced Disclosure and New Prospectus Delivery Option for Registered Open-End Management Investment Companies, Investment Company Act Release No. 28584 (Jan. 13, 2009) [74 FR 4545 (Jan. 26, 2009)] (“2009 Summary Prospectus Adopting Release”); Updated Disclosure Requirements and Summary Prospectus for Variable Annuity and Variable Life Insurance Contracts, Investment Company Act Release No. 33814 (Mar. 11, 2020) [85 FR 29614 (May 18, 2020)] (“VASP Adopting Release”); Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements, Investment Company Act Release No. 34731 (Oct. 26, 2022) [87 FR 72758 (Nov. 25, 2022)] (“Tailored Shareholder Reports Adopting Release”) at section II (discussing, in part, how funds have incentives to present more interactive, dynamic disclosure on their websites and that funds are encouraged to use online tools such as expense calculators to enhance an investor's understanding of material in annual reports); Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Personal Information, Securities Exchange Act Release No. 100155 (May 16, 2024) [89 FR 47688 (June 3, 2024)] (“Regulation S-P Adopting Release”) at n.200 (addressing circumstances under which certain required notices under Regulation S-P may be provided electronically).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             
                            <E T="03">See, e.g.,</E>
                             2009 Summary Prospectus Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at paragraph accompanying nn.24-29.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Request for Comment on Fund Retail Investor Experience and Disclosure, Investment Company Act Release No. 33113 (June 5, 2018) [83 FR 26891 (June 11, 2018)].
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Letter from Fidelity Investments, The Charles Schwab Corporation, and BlackRock, Inc. to SEC Chairman Jay Clayton (Sept. 8, 2020) (“the work of print vendors and suppliers relied upon by the financial services industry has been hindered by the pandemic crisis and related Federal, State and local orders and ordinances”), 
                            <E T="03">available at https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/about-fidelity/digital-delivery-letter.pdf</E>
                            ; Order Under Section 36 of the Securities Exchange Act of 1934 Modifying Exemptions from the Reporting and Proxy Delivery Requirements for Public Companies, Securities Exchange Act Release No. 88465 (Mar. 25, 2020) (among other relief, suspending the requirement to furnish proxy statements, annual reports, and other soliciting materials, as applicable, through the U.S. mail, subject to certain conditions); Order under Section 6(c) and Section 38(a) of the Investment Company Act of 1940 Granting Exemptions from Specified Provisions of the Investment Company Act and Certain Rules Thereunder; Commission Statement Regarding Prospectus Delivery, Investment Company Act Release No. 33824 (Mar. 25, 2020) (in part, temporarily exempting registered management investment companies from the requirement to transmit annual and semi-annual reports to investors); Staff Guidance for Conducting Shareholder Meetings in Light of COVID-19 Concerns (last updated Apr. 7, 2020), 
                            <E T="03">available at https://www.sec.gov/ocr/staff-guidance-conducting-annual-meetings-light-covid-19-concerns</E>
                             (in part, permitting issuers to furnish proxy materials through the “notice-only” e-delivery option, without meeting all aspects of the notice and timing requirements of rule 14a-16, because of delays in printing and mailing of the full set of their materials due to the impact of COVID-19); Staff Statement Regarding Temporary International Mail Service Suspensions to Certain Jurisdictions Related to the COVID-19 Pandemic (June 24, 2020), 
                            <E T="03">available at https://www.sec.gov/tm/temporary-international-mail-service-suspension</E>
                            . By contrast, the Commission is not aware of similar delivery challenges with regulatory documents and reports that were electronically delivered during that period.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Letter from Broadridge Financial Solutions, Inc. to FINRA (July 14, 2025) (“Broadridge Letter”) 
                            <E T="03">available at https://www.finra.org/sites/default/files/NoticeComment/Broadridge%20Comment%20Letter%20to%20FINRA%20-%2007-14-2025.pdf</E>
                             (stating, for example, that broker-dealers save an average of $0.75 on paper and postage when a typical account statement is e-delivered instead of mailed and that equity operating companies save several dollars on each proxy statement that is e-delivered instead of mailed); Letters from Investment Company Institute to Chairman Paul S. Atkins (Nov. 18, 2025 and Apr. 11, 2025), 
                            <E T="03">available at https://www.ici.org/system/files/2025-11/25-cl-edelivery-framework-recommendations.pdf</E>
                             and 
                            <E T="03">https://www.ici.org/system/files/2025-04/25-cl-chair-atkins-investor-priorities.pdf</E>
                             (“Nov. 2025 ICI Letter” and “Apr. 2025 ICI Letter,” respectively, and collectively, “ICI Letters”) (suggesting, in part, that default e-delivery would save funds and their shareholders annual savings of between $589 million to $797 million and projected cumulative savings of $3 billion to $4 billion over five years, and stating that funds are operationally ready to implement e-delivery as a default delivery method).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             
                            <E T="03">See, e.g.,</E>
                             SEC Chair Atkins on Protecting Investors, Promoting Markets, Powering Growth—A Conversation at SIFMA's 2025 Annual Meeting (Nov. 5, 2025) (discussing the SEC's agenda and priorities, including e-delivery), 
                            <E T="03">available at https://www.sifma.org/news/blog/sec-chair-atkins-on-protecting-investors-promoting-markets-powering-growth</E>
                            ; Chairman Paul Atkins, 
                            <E T="03">American Leadership in the Digital Finance Revolution,</E>
                             Securities and Exchange Commission (July 31, 2025) 
                            <E T="03">available at https://www.sec.gov/newsroom/speeches-statements/atkins-digital-finance-revolution-073125</E>
                             (discussing the launch of Project Crypto); Commissioner Hester Peirce, Misery Loves [Investment] Company: Remarks at the 2026 Investment Company Institute Investment Management Conference (Mar. 24, 2026), 
                            <E T="03">available at https://www.sec.gov/newsroom/speeches-statements/peirce-remarks-investment-company-institute-032426</E>
                             (“We should consider a proposal either to make electronic delivery the default or even to allow firms to offer disclosure in whatever form they prefer”); 
                            <E T="03">see also</E>
                             Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13 (acknowledging the concerns raised by commenters about the method of delivery of fund regulatory materials and stating, in part, that “reconsidering the Commission's e-delivery regime for fund materials, however, merits further consideration”).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">B. Information About E-Delivery Preferences</HD>
                    <P>
                        Our understanding about preferences for electronic media is informed by many sources, including studies and data about Americans' access to and use of the internet and recently-conducted investor testing surveys, as well as past disclosure reform initiatives. Since the decades-old E-Delivery Guidance releases were published, there have 
                        <PRTPAGE P="45888"/>
                        been significant advances in electronic communications technologies as well as in the way Americans use those technologies. For example, access to the internet in the United States (“U.S.”) has expanded to the point where the Federal Communications Commission now reports that nearly all areas of the U.S., whether rural or urban, have access to advanced telecommunications capability through high-speed broadband or satellite services.
                        <SU>19</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Federal Communications Commission, 
                            <E T="03">Fourteenth Broadband Deployment Report</E>
                             (Jan. 13, 2021), p. 19 and Appendix H, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://docs.fcc.gov/public/attachments/FCC-21-18A1.pdf</E>
                             (“Broadband Deployment Report”). The term “advanced telecommunications capability” is defined, without regard to any transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology. 47 U.S.C. 1302(d)(1); 
                            <E T="03">see also</E>
                             Broadband Deployment Report at n.5.
                        </P>
                    </FTNT>
                    <P>
                        Consistent with their nearly universal access to advanced telecommunications capability, Americans' use of the internet has evolved over time. For example, based on surveys on this topic conducted on behalf of the Pew Research Center (“2025 Pew Survey”), a not-for-profit research organization, the percentage of U.S. adults who use the internet has almost doubled from approximately 50% in 2000 to approximately 96% in 2025.
                        <SU>20</SU>
                        <FTREF/>
                         Moreover, 16% of U.S. adults responding to the 2025 Pew Survey reported that they are “smartphone-only” internet users, meaning they own a smartphone, but do not subscribe to a home broadband service.
                        <SU>21</SU>
                        <FTREF/>
                         Use of the internet has grown to the point to where, in response to an Internal Revenue Service (“IRS”) paperless processing initiative, over 90% of all individual tax returns for fiscal year 2024 were filed electronically.
                        <SU>22</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Pew Research Center, internet, Broadband Fact Sheet (Nov. 20, 2025) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.pewresearch.org/internet/fact-sheet/internet-broadband/</E>
                             (“2025 Pew internet Fact Sheet”) (also reporting that subscription to a broadband service has become so widespread that 54% of households with less than $30,000 annual income subscribe to home broadband); R. Gelles-Watnick, Americans' Use of Mobile Technology and Home Broadband (Jan. 31, 2024) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.pewresearch.org/internet/2024/01/31/americans-use-of-mobile-technology-and-home-broadband/</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             
                            <E T="03">See</E>
                             2025 Pew internet Fact Sheet, 
                            <E T="03">supra</E>
                             footnote 20.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             
                            <E T="03">See</E>
                             Internal Revenue Service Data Book—October 1, 2023 to September 30, 2024 at table 4 (reporting that 93.3% of all individual tax returns for fiscal year 2024 were filed electronically) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.irs.gov/statistics/returns-filed-taxes-collected-and-refunds-issued</E>
                            ; Fact Sheet: Taxpayers will have the option to go paperless for IRS correspondence by the 2024 filing season, IRS to achieve paperless processing for all tax returns by filing season 2025, FS-2023-18, Aug. 2023 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.irs.gov/newsroom/irs-launches-paperless-processing-initiative</E>
                            ; Internal Revenue Service; Taxpayer Files Return on Paper, Taxpayer Advocate Service, Internal Revenue Service (updated Apr. 16, 2026) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.taxpayeradvocate.irs.gov/notices/taxpayer-files-return-on-paper/</E>
                            .
                        </P>
                    </FTNT>
                    <P>
                        In addition, available evidence suggests that investors and other recipients of regulatory information not only increasingly expect, but also prefer, that regulatory documents and reports under the Federal securities laws be delivered electronically.
                        <SU>23</SU>
                        <FTREF/>
                         In mid-2025, staff in the Office of Investor Research (“OIR”) within the Commission's Office of the Investor Advocate engaged in investor testing to explore investor preferences for e-delivery of financial disclosures.
                        <SU>24</SU>
                        <FTREF/>
                         In analyzing the data from a nationally representative survey panel, OIR found that the vast majority of U.S investors (nearly 80%) prefer some form of e-delivery for financial disclosure documents that do not include personal information, and also that a majority (approximately 63%) prefers some form of e-delivery even for documents that do include personal information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             
                            <E T="03">See</E>
                             FINRA Investor Education Foundation, Investors in the United States—A Report of the National Financial Capability Study (4th Ed. Dec. 2025) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.finrafoundation.org/sites/finrafoundation/files/2025-11/NFCS_Investor_Survey_Report_White_Paper.pdf</E>
                             (“FINRA Foundation National Financial Capability Study”) (based on two linked surveys conducted in 2024 that included a state-by state online survey of 25,539 U.S. adults across all 50 states and Washington, DC and an investor online survey of 2,861 U.S. adults who have investments outside of retirement account, reporting, in part, that email continues to be most popular method for receiving disclosures (39%) followed by paper delivery (32%); Most Investors Want Electronic, Not Paper, Delivery of Investor Documents (Summer 2022), FSG Global YouGov survey commissioned by SIFMA (survey of 1300 individual investors conducted nationwide between May 16-19, 2022 where the investors surveyed held at least $5,000 across retirement accounts, college-savings investments, stocks, bonds, mutual funds, or a brokerage account, excluding property and cryptocurrency investments) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sifma.org/wp-content/uploads/2022/07/SIFMA-Survey-Results-for-SEC-July-2022.pdf</E>
                             (“SIFMA Survey”) (finding, in part, that 81% of investors surveyed would prefer at least one type of investor communication be sent via e-delivery rather than physical mail, and that the majority of investors surveyed (79%) have already opted in to receive investor communications electronically, either through email, a financial institution's website, or a mobile application).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             
                            <E T="03">See</E>
                             Exploring Investor Preferences for Electronic Delivery of Financial Disclosures, U.S. Securities and Exchange Commission Office of the Investor Advocate (May 2026), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/files/exploring-investor-preferences-electronic-delivery-financial-disclosures.pdf</E>
                            . That statement and any other staff statements referenced in this release are not a rule, regulation, guidance, or statement of the Commission, and the Commission has neither approved nor disapproved their content. Staff statements have no legal force or effect: they do not alter or amend applicable law, and they create no new or additional obligations for any person. The OIR investor testing included a survey of 5,497 participants. The questions about the e-delivery of investment related disclosures were shown only to investors, leaving a total of 4,295 respondents. In response to the Commission's 2020 proposal on tailored shareholder reports (Tailored Shareholder Reports, Treatment of Annual Prospectus Updates for Existing Investors, and Risk Disclosure for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements, Investment Company Act Release No. 33963 (Aug. 5, 2020) [85 FR 70716 (Nov. 5, 2020)] (“Tailored Shareholder Reports Proposing Release”), comment file 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/comments/s7-09-20/s70920.htm</E>
                            ), the Consumer Federation of America submitted a letter stating that as the Commission implements policy changes to promote e-delivery, the Commission should continue to engage in testing to determine whether it achieves the goal of promoting better investor engagement. 
                            <E T="03">See</E>
                             Letter of Consumer Federation of America (Dec. 15, 2020) (“CFA 2020 Letter”).
                        </P>
                    </FTNT>
                    <P>
                        Other nationwide investor surveys have reported similar investor preferences for e-delivery of investor communications.
                        <SU>25</SU>
                        <FTREF/>
                         For example, several recent nationwide financial industry surveys of investors, including one conducted on behalf of the Investment Company Institute (“ICI”), an asset management industry trade group, reported that e-delivery has become so pervasive that over 80% of the U.S. individuals surveyed, including older individuals, would be comfortable with e-delivery as the default delivery method for investor communications, as long as paper delivery still could be requested.
                        <SU>26</SU>
                        <FTREF/>
                         In addition, the ICI Survey reported that (1) 82% of U.S. individuals surveyed recalled receiving communications about financial documents electronically (30% of those respondents recalled receiving both electronic and paper communications about financial documents) and (2) 79% of fund investors who reported that they only received paper copies of financial documents also supported e-delivery as a default delivery method.
                        <SU>27</SU>
                        <FTREF/>
                         Further, the ICI Survey sought to better understand 
                        <PRTPAGE P="45889"/>
                        why some investors are receiving paper documents. The survey found that nearly one-third of fund investors receiving some of their financial communications as paper documents wanted e-delivery and had signed up for e-delivery but still received paper documents, and that 6% of fund investors receiving some of their financial communications as paper documents currently received those documents in paper because they thought that signing up for e-delivery would take too much time.
                        <SU>28</SU>
                        <FTREF/>
                         The ICI Survey suggested that an e-delivery default could overcome such frictions.
                        <SU>29</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>25</SU>
                             
                            <E T="03">See</E>
                             Holden, Schrass, Seligman, and Bogdan, 
                            <E T="03">Americans' Views on E-Delivery of Financial Documents</E>
                             (2025) Washington, DC: Investment Company Institute 
                            <E T="03">available at</E>
                              
                            <E T="03">www.ici.org/system/files/2025-09/25-ici-paper-edelivery.pdf</E>
                             (survey designed by ICI staff and administered by NORC at the University of Chicago using the AmeriSpeak® probability-based panel in July 2025 of 1,132 U.S. individuals, including 400 mutual fund or ETF investors) (“ICI Survey”); SIFMA Survey, 
                            <E T="03">supra</E>
                             footnote 23 (also finding that comfort with e-delivery as the default was high regardless of age, education level, income level, and the amount of assets held).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25 (finding that 84% of all respondents and 88% of fund investors, including 87% of fund investors age 65 and older, agreed with the statement “As long as people can still request paper at no cost, it's a good idea to make e-delivery the default”); FINRA Foundation National Financial Capability Study, 
                            <E T="03">supra</E>
                             footnote 23 (finding, in part, that most popular method for receiving disclosures is by email (39%)); SIFMA Survey, 
                            <E T="03">supra</E>
                             footnote 23 (finding 85% of U.S. investors surveyed would be comfortable with e-delivery as the default for investor communications).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             
                            <E T="03">See id.</E>
                             (based on responses to the following question “[w]hy do you currently receive some of your financial communications as paper documents?”); 
                            <E T="03">see supra</E>
                             footnote 25 (discussing the challenges in obtaining email addresses from investors); 
                            <E T="03">see infra</E>
                             footnote 41 (discussing surveys submitted by commenters suggesting why investors are not receiving regulatory documents and reports by e-delivery).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25 (suggesting that an e-delivery default would benefit nearly four-in-ten fund investors currently receiving at least some paper documents).
                        </P>
                    </FTNT>
                    <P>
                        Consistent with these findings, another recent nationwide financial industry survey of investors conducted on behalf of Broadridge Financial Solutions, Inc. (“Broadridge”), a financial technology company, found that prospective new investors not only would prefer e-delivery as the default method of communication but also trust email over physical mail by over a three to one factor (57% to 18%).
                        <SU>30</SU>
                        <FTREF/>
                         That survey also found that deliveries by email and “push notifications from firms' apps” currently comprise 71% of all account statement deliveries, 83% of all trade confirmation deliveries, and 58% of the tax forms sent to U.S. investors surveyed, and that most investors surveyed, including investors age 55 and older, use a laptop or desktop to access their accounts while over 60% use a mobile device.
                        <SU>31</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             
                            <E T="03">See</E>
                             Survey of Investor Delivery Preferences for Required Regulatory Communications (July 2025), Forrester Research survey commissioned by Broadridge (survey conducted in November-December 2024 of over 5,000 individuals, consisting of 4,506 who are U.S. investors with brokerage, investment, or non-workplace retirement accounts and 501 individuals who do not currently have an account but plan to open one within 6-12 months) (“Broadridge Survey”) submitted as part of Broadridge Letter, 
                            <E T="03">supra</E>
                             footnote 17 (finding, in part, that 76% of prospective new investors would prefer e-delivery of account statements as the default method of communication; 65% of prospective new investors would prefer e-delivery of tax documents and other mandatory disclosures as the default method of communication).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Other nationwide surveys conducted several years ago found similar results. For example, a 2022 nationwide survey conducted on behalf of the Securities Industry and Financial Markets Association (“SIFMA”), a securities industry trade group, found that 81% of the individual investors surveyed reported that they would prefer that at least one type of investment communication be sent via e-delivery.
                        <SU>32</SU>
                        <FTREF/>
                         In addition, two linked nationwide surveys conducted in 2021 on behalf of the FINRA Investor Education Foundation found, in part, that investors surveyed prefer email (39%) over paper (32%) for receiving disclosures.
                        <SU>33</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             SIFMA Survey, 
                            <E T="03">supra</E>
                             footnote 23.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             FINRA Foundation National Financial Capability Study, 
                            <E T="03">supra</E>
                             footnote 23; 
                            <E T="03">see also,</E>
                             AARP Retirement Account Statements: Paper or Electronic (May 2022) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.aarp.org/content/dam/aarp/research/surveys_statistics/econ/2022/retirement-accounts-statements-survey-report.doi.10.26419-2Fres.00529.001.pdf</E>
                             (“2022 AARP Study”) (finding, in part, that 42% of adults would prefer to receive electronic statements only from employer-sponsored retirement plans; that 37% of adults would prefer to receive electronic statements and mailed statements at least once a year from employer-sponsored retirement plans; 20% of adults would prefer to receive only paper statements from employer-sponsored retirement plans; and that among adults receiving paper from their retirement accounts, only three in ten actively chose this option while 58% just accepted the default setting regarding paper statements). The study was based on 1,228 adults age 25 or older who currently had money in an employer-sponsored plan or who work/worked for an employer that offers a traditional pension and expect to receive pension income. The adults were interviewed by phone or online from February 8-27, 2022.
                        </P>
                    </FTNT>
                    <P>
                        Other developments in the asset management industry similarly reflect increasing use of electronic communications among investors. We have observed growth in social sentiment investing tools offered by financial services firms that seek to aggregate or analyze social media data from various sources such as X and Facebook.
                        <SU>34</SU>
                        <FTREF/>
                         Examples of social sentiment investing tools include direct trading from social media websites or mobile applications, social networking platforms, social media data analysis, and crowdsourced research and analysis that investors may use to inform their investment decisions.
                        <SU>35</SU>
                        <FTREF/>
                         We believe that the increased use of these tools suggests investor comfort with electronic communications. We also have observed growth in financial intermediary models, such as robo-advisers, and growth in the ability to execute security trades through mobile applications.
                        <SU>36</SU>
                        <FTREF/>
                         We understand that these financial intermediary models and tools use electronic communications and delivery as their primary mode of communication with investors.
                    </P>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Investor Bulletin: Social Sentiment Tools—Think Twice Before Trading Based on Social Media (Apr. 3, 2019), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-18</E>
                            ; 
                            <E T="03">see also, e.g.,</E>
                             Securities and Exchange Commission, Division of Examinations, Risk Alert: Observations from Examinations of Advisers that Provide Electronic Advice (Nov. 9, 2021), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/files/exams-eia-risk-alert.pdf</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             It has been estimated that the robo-advisory services market size (in revenues) was $14.29 billion in 2025, and that the robo-advisory services market is expected to reach $54.73 billion by 2030. 
                            <E T="03">See Robo-advisory Services Market Size, Competitive Landscape 2030, available at</E>
                              
                            <E T="03">https://mordorintelligence.com/industry-reports/robo-advisory-services-market</E>
                            ; 
                            <E T="03">see also</E>
                             FINRA Foundation National Financial Capability Study, 
                            <E T="03">supra</E>
                             footnote 23 (reporting, in part, that online trading through a website is the most commonly cited method (62%) followed by a mobile application (46%) that survey respondents reported using to execute trades). Further, the number of internet advisers has grown from 57 in 2010 to 222 in 2024. 
                            <E T="03">See</E>
                             Investment Adviser Statistics, Form ADV data for the reporting period ending December 2024, U.S. Securities and Exchange Commission, Division of Investment Management, Analytics Office, Table 1.1, 
                            <E T="03">available at</E>
                             im-investment-adviser-statistics-20250430.pdf.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">C. Other Developments Informing the Commission's Approach to Delivering Information</HD>
                    <P>In addition to evidence about preferences regarding the e-delivery of required regulatory disclosures and reports, our proposal is informed by various financial industry stakeholders and other developments regarding e-delivery. Given the evolving preferences and trends regarding the use of electronic media, diverse financial industry stakeholders have advocated through multiple forums, including Commission advisory committees, Commission rulemakings, and letters to the Commission's Chairman, for the modernization of the Commission's e-delivery framework.</P>
                    <P>
                        The Commission has advisory committees to provide diverse perspectives and recommendations on a variety of regulatory priorities and initiatives. One of these advisory committees, the Asset Management Advisory Committee (“AMAC,” currently inactive), was composed of a group of outside experts on asset management, including individuals representing the views of retail and institutional investors, small and large funds, intermediaries, and other market participants. In 2020, AMAC recommended that the Commission permit firms to use an investor's “digital address,” such as an email address or smartphone telephone number, as the primary address when delivering regulatory documents, in light of the operational challenges that arose at the onset of the COVID-19 pandemic. The AMAC recommendation observed that the expanding use of digital tools to 
                        <PRTPAGE P="45890"/>
                        communicate with investors was essential for financial services operations during the pandemic.
                        <SU>37</SU>
                        <FTREF/>
                         Other Commission advisory committees put forth similar recommendations over the past decade.
                        <SU>38</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             
                            <E T="03">See</E>
                             Asset Management Advisory Committee, Preliminary Recommendations of Operations Panel Regarding COVID-19 Operational Issues (Nov. 5, 2020), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/spotlight/amac/operational-issues-amac-recommendations-final-110520.pdf</E>
                             (adopted by full Committee at Nov. 5, 2020 meeting).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Investor Advisory Committee, Recommendation of the Investor Advisory Committee Regarding Promotion of Electronic Delivery and Development of a Summary Disclosure Document for Delivery of Investment Company Shareholder Reports (Dec. 7, 2017), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/spotlight/investor-advisory-committee-2012/recommendation-promotion-of-electronic-delivery-and-development.pdf</E>
                             (recommending that the Commission continue to explore methods to encourage a transition to e-delivery that respect investor preferences and that increase, rather than reduce, the likelihood that investors will see and read important disclosure documents).
                        </P>
                    </FTNT>
                    <P>
                        Outside of the Commission's advisory committees, financial industry stakeholders have advocated in Commission rulemakings for the modernization of the Commission's E-Delivery Guidance.
                        <SU>39</SU>
                        <FTREF/>
                         For example, in a recent disclosure-related rulemaking, commenters urged that the Commission reevaluate its e-delivery approach to modernize its E-Delivery Guidance.
                        <SU>40</SU>
                        <FTREF/>
                         One such commenter suggested that, in its experience, the requirement to affirmatively opt-in to receive documents by e-delivery creates an element of inertia.
                        <SU>41</SU>
                        <FTREF/>
                         Another commenter suggested that the Commission reevaluate the delivery of fund regulatory documents through a separate rulemaking.
                        <SU>42</SU>
                        <FTREF/>
                         In addition, another commenter, while agreeing that the time was right for the Commission to reconsider its approach to disclosure in a digital age, also suggested that e-delivery be part of a broader disclosure modernization project driven by investor preferences and an analysis of what works to improve investor engagement with disclosure.
                        <SU>43</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             
                            <E T="03">See, e.g.,</E>
                             VASP Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13; Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13; Investment Company Names, Investment Company Act Release No. 35000 (Sept. 20, 2023) [88 FR 70436 (Oct. 11, 2023), Investment Company Names Correction, Investment Company Act Release No. 35000A (Oct. 24, 2023) [88 FR 73755 (Oct. 27, 2023)].
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             
                            <E T="03">See, e.g.,</E>
                             certain comments submitted in response to the Tailored Shareholder Reports Proposing Release, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/comments/s7-09-20/s70920.htm</E>
                            : Letter of Investment Company Institute (Dec. 21, 2020) (“ICI 2020 Comment Letter”) (in part, expressing disappointment that the Commission did not propose to modernize the 25-year old guidance that governs e-delivery); Letter of Dechert LLP (Jan. 4, 2021) (“Dechert 2021 Comment Letter”) (suggesting that the Commission make e-delivery of fund documents to shareholders a default, with the option to opt in to paper, as desired); and Letter of Federated Hermes (Jan. 4, 2021) (“Federated Hermes 2021 Comment Letter”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             
                            <E T="03">See</E>
                             certain comments submitted in response to the Tailored Shareholder Reports Proposing Release, 
                            <E T="03">supra</E>
                             footnote 24: Letter of T. Rowe Price (Jan. 5, 2021) (reporting that when investors were asked why they do not receive financial communications electronically, 11% reported that signing up for e-delivery is too time consuming and 27% reported that they had signed up for e-delivery but still receive paper copies); 
                            <E T="03">see also</E>
                             SIFMA survey, 
                            <E T="03">supra</E>
                             footnote 23; 
                            <E T="03">see also</E>
                             Letter from the Committee of Annuity Insurers (Feb. 14, 2019) (suggesting that the low election of e-delivery of variable contract statutory prospectuses and underlying funds is reflective of the outdated and cumbersome electronic enrollment process) submitted in response to Updated Disclosure Requirements and Summary Prospectus for Variable Annuity and Variable Life Insurance Contracts, Investment Company Act Release No. 33286 (Oct. 30, 2018) [83 FR 61730 (Nov. 30, 2018] (“VASP Proposal”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             
                            <E T="03">See, e.g.,</E>
                             certain comments submitted in response to the Tailored Shareholder Reports Proposing Release, 
                            <E T="03">supra</E>
                             footnote 24: Federated Hermes 2021 Comment Letter (stating that the mutual fund industry should adapt to the preferences of modern shareholders who rely on electronic communication methods for many aspects of their daily lives); Dechert 2021 Comment Letter; and ICI 2020 Comment Letter.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             
                            <E T="03">See</E>
                             CFA 2020 Letter; 
                            <E T="03">see also</E>
                             Comment Letter of Federated Hermes on S7-2026-01 (Mar. 12, 2026) (“Federated Hermes 2026 Comment Letter”) (expressing support for making electronic delivery the default method for investor communications across the financial services industry).
                        </P>
                    </FTNT>
                    <P>
                        Financial industry stakeholders also have advocated directly with the Commission's current Chairman for modernization of the Commission's E-Delivery Guidance. These stakeholders have suggested that the modernization of the Commission's e-delivery framework should be a priority, particularly because of the benefits that a more modern e-delivery framework could bestow upon investors.
                        <SU>44</SU>
                        <FTREF/>
                         While observing the nearly universal use and availability of the internet, financial industry stakeholders have suggested that the benefits of e-delivery also include a faster and more secure shareholder experience; more dynamic communications, including the use of pop-up messages from firms' mobile phone applications; opportunities for layered disclosure; enhanced abilities to access, read, and search material; ease of storage and retrieval; enhanced investor protection security protocols; and cost savings that would accrue to investors. These financial industry stakeholders have urged the Commission to adopt a rule to make e-delivery the default delivery method for regulatory disclosures and reports while preserving an option to opt out of e-delivery.
                        <SU>45</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             
                            <E T="03">See, e.g.,</E>
                             ICI Letters, 
                            <E T="03">supra</E>
                             footnote 17; Letter from Committee on Capital Markets Regulation to Chairman Paul Atkins (Nov. 14, 2025) available at 
                            <E T="03">https://capmktsreg.org/wp-content/uploads/2025/11/CCMR-Letter-to-SEC-Re.-E-Delivery-11.14.25.pdf</E>
                             (“CCMR Letter”); Letter from Securities Industry and Financial Markets Association and its Asset Management Group to Chairman Paul Atkins (Sept. 15, 2025), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sifma.org/resources/submissions/letters/modernizing-delivery-requirements-under-the-federal-securities-laws-sifma-and-sifma-amg/</E>
                             (“SIFMA Letter”); Letter from Investment Advisers Association to Chairman Paul S. Atkins (May 1, 2025), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.investmentadviser.org/resources/iaa-letter-to-sec-chairman-atkins/</E>
                             (“IAA Letter”); 
                            <E T="03">see also</E>
                             Letter from The Capital Group Companies, Inc. to Chairman Paul S. Atkins (Dec. 19, 2025) 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.linkedin.com/feed/update/urn:li:activity:7468725136398012416/</E>
                             (“Capital Group Letter”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Certain other U.S. regulators whose authority involves consumer financial services have transitioned to a framework that no longer looks to paper as a default delivery method. For example, in 2020, the Department of Labor adopted and implemented rules that create a safe harbor for employee benefit plan administrators to use electronic media as the default to furnish documents and information to participants and beneficiaries of ERISA plans, subject to certain conditions.
                        <SU>46</SU>
                        <FTREF/>
                         In addition, other self-regulatory organizations whose authority involves consumer financial services are exploring and/or transitioning to a framework that no longer looks to paper as a default delivery method.
                        <SU>47</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             
                            <E T="03">See</E>
                             Department of Labor, Default Electronic Disclosure by Employee Pension Benefit Plans Under ERISA, 85 FR 31884 (May 27, 2020) (“Default E-Delivery DOL Adopting Release”). SECURE Act 2.0 amended ERISA section 105(a)(2) [Employee Retirement Income Security Act of 1974, 29 U.S.C. 1001 
                            <E T="03">et seq.</E>
                            ] to add a new requirement “Provision of Paper Statements.” For plan years beginning after December 31, 2025, it requires at least one pension benefit statement furnished for a calendar year for an individual account plan, and at least one pension benefit date furnished every three years for a defined benefit plan unless the plan issues the statement in compliance with Department of Labor's 2002 e-delivery safe harbor or the plan permits participants or beneficiaries to request e-delivery of pension benefit statements. 
                            <E T="03">See</E>
                             SECURE 2.0 Act of 2022, Division T of the Consolidated Appropriations Act, 2023, Public Law 117-328, 136 Stat. 4459 (2022). In addition, the Commission is aware of certain bipartisan congressional support for permitting default e-delivery of the Commission's required regulatory disclosures and reports. 
                            <E T="03">See, e.g.,</E>
                             Incentivizing New Adventures and Economic Strength Through Capital Formation Act of 2025 (“INVEST Act of 2025”), H.R. 3383, 119th Congress, 1st Sess. (2025) at § 205. This bill has not been enacted.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             
                            <E T="03">See</E>
                             FINRA Regulatory Notice 25-07 (Apr. 14, 2025); MSRB Notice 2024-15 (Dec. 11, 2024); 
                            <E T="03">see also</E>
                             MSRB Rule G-32 (permitting dealers selling municipal debt securities in a primary offering to rely on the MSRB's EMMA website as an alternative to physical delivery of official statements).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">D. Overview of Proposed New E-Delivery Framework</HD>
                    <P>
                        Reg E-Delivery, if adopted, would be the Commission's primary rule addressing e-delivery, and would generally supersede the Commission's current guidance-based e-delivery 
                        <PRTPAGE P="45891"/>
                        framework. If adopted, issuers and market intermediaries, among others, that comply with the conditions of Reg E-Delivery would be assured that they have satisfied, through the use of e-delivery, applicable requirements to deliver regulatory disclosures and reports under the Federal securities laws. As described below, Reg E-Delivery would permit the use of default e-delivery (that is, using e-delivery as the default delivery method, with the ability to opt out of default e-delivery, and also to receive paper copies of covered information on request). In addition, regardless of whether an entity chooses to use default e-delivery, Reg E-Delivery would establish conditions under which the Commission would consider delivery requirements under the Federal securities laws to have been satisfied by e-delivery.
                    </P>
                    <HD SOURCE="HD2">The proposal includes the following principal elements:</HD>
                    <P>
                        • 
                        <E T="03">Scope of proposed rule:</E>
                         Reg E-Delivery would address e-delivery of “covered information” by “covered entities” to “covered recipients.” 
                        <SU>48</SU>
                        <FTREF/>
                         Covered information, in general, would be defined as any information required to be delivered to a covered recipient under the Federal securities laws.
                        <SU>49</SU>
                        <FTREF/>
                         Covered entities would include any person that has an obligation to deliver covered information to a covered recipient under the Federal securities laws. Covered recipients would include any current or prospective customer, client, investor, security holder, counterparty, or similar recipient of information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             
                            <E T="03">See infra</E>
                             section II.A for additional information about the principal elements of the proposal.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             As used in this context, the term “require” means required to: comply with or rely on a regulation; or, satisfy a condition for reliance on a regulatory safe harbor or a regulatory exception. For the avoidance of doubt, Reg E-Delivery would not affect the ability of a covered entity to rely on regulatory provisions that permit compliance with document delivery conditions through the inclusion in an electronic communication of an active hyperlink to the document required to be delivered. 
                            <E T="03">See, e.g.,</E>
                             Securities Act rule 134(f) and Note 1 to Securities Act rule 433(b)(2)(i).
                        </P>
                    </FTNT>
                    <P>
                        • 
                        <E T="03">E-delivery permitted to be the default delivery method for covered information:</E>
                         Reg E-Delivery would permit (but not require) covered entities to use e-delivery as the default method of delivery for covered information, subject to certain conditions.
                    </P>
                    <P>
                        • 
                        <E T="03">General e-delivery requirements:</E>
                         Regardless of whether a covered entity chooses to default covered recipients to e-delivery, or continues to require covered recipients to affirmatively consent to e-delivery, a covered entity would be able to rely on the proposed rule to satisfy its delivery obligation for covered information electronically where: (1) the covered recipient has provided an electronic address; (2) the covered entity has provided a prominent disclosure to the covered recipient that it will send covered information to the electronic address provided; and (3) the covered recipient has not opted out of e-delivery. Reg E-Delivery also would include general requirements for the method, timing, and ability to opt out of e-delivery, as well as requirements for websites on which covered information is available. These would include:
                    </P>
                    <P>
                        • 
                        <E T="03">Permissible methods of e-delivery:</E>
                         Under proposed Reg E-Delivery, a covered entity would be able to use two methods of e-delivery, depending on the type of information being provided: direct delivery and a statement of availability. The permissible delivery method would depend on whether the covered information includes personal financial information (“PFI”), which the proposal would define—similar to the 1996 Guidance—as information specific to a covered recipient's personal financial matters. For covered information that does not include PFI, a covered entity could electronically deliver covered information directly to a covered recipient's electronic address (
                        <E T="03">e.g.,</E>
                         attached to or included in the body of an email). For covered information that includes PFI, a covered entity would not be permitted to deliver this information directly to an electronic address, but instead would be required to deliver a statement of availability to the covered recipient's electronic address (
                        <E T="03">e.g.,</E>
                         an email with a link to the website address where the covered recipient can access the transmitted information). The statement of availability would be required to include, among other items, a website address that would require the use of a process reasonably designed to safeguard the PFI, and that would lead the covered recipient directly to the covered information immediately after the covered recipient completes such process. A covered entity also would be permitted to use this e-delivery method for covered information that does not include PFI.
                    </P>
                    <P>
                        • 
                        <E T="03">Statement regarding the process to receive paper, opt out of e-delivery, and update electronic address:</E>
                         Regardless of the e-delivery method, the delivery of covered information would need to include a prominent statement explaining the process to: (1) obtain a paper version of covered information, upon request, as well as the covered entity's obligation to provide a paper copy of covered information in paper format free of charge; (2) opt out of e-delivery at any time and receive delivery in paper format with respect to all or a subset of covered information, free of charge, following an opt-out election; and (3) update one's electronic address, free of charge. This statement also would, at a minimum, direct a covered recipient to a website through which one can make these requests and updates.
                    </P>
                    <P>
                        • 
                        <E T="03">Timing requirements for e-delivery:</E>
                         Regardless of the e-delivery method used—statement of availability or direct delivery of covered information—the covered entity must deliver the covered information no later than the date by which the covered information is required to be delivered under the Federal securities laws.
                    </P>
                    <P>
                        • 
                        <E T="03">Requirements for website availability of required disclosures and reports:</E>
                         If a covered entity uses the statement of availability method for e-delivery, Reg E-Delivery would require that the covered entity ensure there is a website (which could include another internet or electronic-based information repository, such as a mobile application) where a covered recipient would be able to access the covered information. Proposed Reg E-Delivery includes minimum requirements for: (1) the length of time the covered information must be made available on the website; and (2) the format for presenting covered information on the website. A covered recipient only would be able to access covered information that includes PFI on the website through the use of a process reasonably designed to safeguard the covered information.
                    </P>
                    <P>
                        • 
                        <E T="03">Identifying and mitigating failed e-delivery:</E>
                         Covered entities would be required to adopt and implement written policies and procedures reasonably designed to identify and remediate failed e-delivery (which, as discussed below, would include detecting an invalid or inoperable electronic address via bounce-backs or other means). If any failed e-delivery is identified, the covered entity must promptly take reasonable remediation steps, including obtaining a new electronic address or delivering the covered information in paper format until the covered recipient provides a new electronic address.
                    </P>
                    <P>
                        • 
                        <E T="03">Required notices and transition process for default e-delivery for covered recipients currently receiving information in paper format.</E>
                         Reg E-Delivery would include a special provision for covered recipients who, at the time of the rule's effectiveness, are currently receiving any covered information in paper format, where the covered entity wishes to transition such 
                        <PRTPAGE P="45892"/>
                        covered recipients to default e-delivery under the rule. Under this provision, a covered entity that wishes to transition current covered recipients receiving paper to default e-delivery would generally be required to provide a covered recipient currently receiving any covered information in paper format (and for whom the covered entity has an electronic address) with a paper initial notice at least 180 days before the transition to default e-delivery, and a paper follow-up notice 30 days before the transition. The notices would alert the covered recipient about the upcoming transition to e-delivery, specify the electronic address where covered information would be provided, and include a prominent statement describing the ability to: opt out of e-delivery and receive paper copies at any time, free of charge; the ability to update or confirm one's electronic address; and the process by which a covered recipient could opt out of e-delivery and/or update or confirm one's electronic address. This transition requirement would not apply to: (1) covered recipients who already receive e-delivery for all covered information; or (2) covered entities that do not wish to transition their e-delivery processes to default e-delivery for existing covered recipients.
                    </P>
                    <P>
                        • 
                        <E T="03">Application of the E-SIGN Act:</E>
                         To the extent that any covered information delivered under proposed Reg E-Delivery otherwise would have been subject to the consumer consent requirements of the Electronic Signatures in Global and National Commerce Act, Public Law 106-229 (114 Stat. 464) (2000) (the “E-SIGN Act”), we are proposing that such covered information would be exempt from these requirements.
                        <SU>50</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             
                            <E T="03">See infra</E>
                             section II.E.
                        </P>
                    </FTNT>
                    <P>
                        • 
                        <E T="03">Amendments to current Commission rules to facilitate proposed Reg E-Delivery:</E>
                         To facilitate the proposed e-delivery rule and to take a modernized approach to the use of electronic media in Commission rules and forms, we are proposing amendments to current Commission rules to, among other things, rescind rule 30e-3 under the Investment Company Act and amend certain rules in Regulations 14A and 14C and rule 14d-5 under the Exchange Act.
                        <SU>51</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             17 CFR 270.30e-3; 
                            <E T="03">see infra</E>
                             section II.F.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Current e-delivery guidance:</E>
                         If the proposed rule is adopted, it would be the Commission's primary rule addressing e-delivery, providing conditions whereby a covered entity would be deemed to have satisfied applicable delivery requirements under the Federal securities laws using e-delivery (with limited exception). As described in more detail below, much of the 1995 Guidance and 1996 Guidance provides a framework for analyzing whether an electronic communication is delivered or transmitted for purposes of the Federal securities laws that is different in some respects from the framework in proposed Reg E-Delivery. Therefore, if adopted, Reg E-Delivery would supersede the 1995 Guidance and 1996 Guidance in their entirety, with certain principles from these releases reaffirmed in any release adopting Reg E-Delivery.
                        <SU>52</SU>
                        <FTREF/>
                         We anticipate that we would retain the majority of the 2000 Guidance, and only certain sections and examples would be superseded by Reg E-Delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             
                            <E T="03">See infra</E>
                             section II.G.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">II. Discussion</HD>
                    <HD SOURCE="HD2">A. Considerations and Goals Informing Proposed E-Delivery Approach</HD>
                    <P>
                        The proposed new e-delivery approach is designed to address the concern that issuers, market intermediaries and ultimately, investors and other recipients of information required under the Federal securities laws may be bearing unnecessary costs and expenses associated with a default delivery method that no longer reflects the preference of most covered recipients.
                        <SU>53</SU>
                        <FTREF/>
                         Over the past decades, our E-Delivery Guidance has provided a useful lens through which to evaluate whether the Federal securities laws' delivery obligations have been satisfied. We continue to believe, as stated in the E-Delivery Guidance, that the use of electronic media should be at least an equal alternative to the use of paper-based media, and accordingly, issuer or third-party information that can be delivered in paper under the Federal securities laws may be delivered in electronic form.
                        <SU>54</SU>
                        <FTREF/>
                         Nevertheless, some aspects of the E-Delivery Guidance have not kept pace with the evolution in technology and the ways that investors and other recipients of covered information have come to use technology in the decades since the Commission published the E-Delivery Guidance.
                        <SU>55</SU>
                        <FTREF/>
                         Requiring recipients to receive regulatory disclosures and reports in paper format unless they opt in to e-delivery is outdated in today's world where it is common to communicate electronically, and investor testing and other evidence have shown that many investors currently receive, and prefer to receive, at least some regulatory disclosures and reports electronically. Paper, printing, and mailing costs associated with the delivery of regulatory disclosures and reports can be significant, and those costs routinely exceed the costs of e-delivery.
                        <SU>56</SU>
                        <FTREF/>
                         While we continue to believe that preferences for delivery in paper format should be honored, we also believe it is difficult to justify the costs and expenses associated with paper delivery as a required default delivery method when an investor or other recipient of covered information who has an electronic address does not affirmatively express a preference for delivery in paper format.
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Multiple surveys, including one conducted by Commission staff, have suggested that investors prefer e-delivery of at least some regulatory documents. The results of those surveys are discussed above. 
                            <E T="03">See supra</E>
                             section I.B; 
                            <E T="03">see also</E>
                             ICI 2020 Comment Letter, 
                            <E T="03">supra</E>
                             footnote 40 (suggesting that the e-delivery of disclosure documents will better satisfy investor preferences and reduce costs to fund shareholders). Certain commenters to Commission rulemaking proposals, however, have suggested otherwise. 
                            <E T="03">See</E>
                             CFA 2020 Letter, 
                            <E T="03">supra</E>
                             footnote 24.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             
                            <E T="03">See supra</E>
                             footnote 3.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             
                            <E T="03">See</E>
                             Prepared Remarks Before SEC Speaks, Paul S. Atkins, Chairman (Mar. 19, 2026), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/newsroom/speeches-statements/atkins-remarks-sec-speaks-031926-prepared-remarks-sec-speaks</E>
                             (discussing, as “an example of the gulf between regulation and reality,” that “our rules still default to paper delivery for shareholder communications,” and stating that “[i]n an age of algorithmic trading and artificial intelligence, I believe that requirement ought to be a relic, not a standard”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>56</SU>
                             For example, Broadridge has stated that based on its processing of positions/accounts held in street name in the 2025 proxy season (Jan.-June 2025), the actual postage alone was $3.05 for a full set of proxy materials. This excludes the costs of printing that can vary. Broadridge estimates that digital proxy communications, which accounted for 90% of all positions processed by Broadridge in the 2025 proxy season, resulted in approximately $5 billion in savings in comparison to the use of full packages for all proxy communications in the first six months of 2025. 
                            <E T="03">See</E>
                             Broadridge Letter, 
                            <E T="03">supra</E>
                             footnote 17. 
                            <E T="03">See also infra</E>
                             section III.
                        </P>
                    </FTNT>
                    <P>
                        In addition, the current e-delivery framework, by generally defaulting covered recipients to receive delivery in paper format if no delivery preference is affirmatively expressed or otherwise agreed to, may be unduly restricting the use and therefore the overall benefits that e-delivery could provide to disclosure. Covered entities may have less of an incentive to develop tools that use electronic media to foster more engaging covered information.
                        <SU>57</SU>
                        <FTREF/>
                         E-delivery offers the opportunity to provide recipients of covered information with a potentially more personalized, interactive, and efficient experience with disclosure than 
                        <PRTPAGE P="45893"/>
                        delivering paper. For example, a delivery method other than static paper permits the inclusion of overlays in regulatory disclosure and reports, such as calculators, hover-overs, or pop-up information, which have the potential to enhance engagement. In addition, e-delivered documents are better suited than paper documents for AI tools that could help covered recipients digest and analyze disclosures. E-delivery also has accessibility and retention benefits, in that it allows for, among other things, font size adjustment and other accessibility tools such as translation tools, the use of search tools, and the ability to retain disclosure in convenient electronic formats. Further, e-delivered documents can be more rapidly delivered than paper documents delivered through U.S. mail, which can be a particular benefit for investors and others in non-U.S. locations who may not be able to receive documents in a timely fashion or without significant expense incurred by the sender.
                        <SU>58</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3 (“The Commission believes that, given the numerous benefits of electronic distribution of information and the fact that in many respects it may be more useful to investors than paper, its use should not be disfavored.”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Moreover, we understand that the U.S. Postal Service may temporarily suspend international mail acceptance for certain destinations due to inadequate transportation options or service disruptions within the country. 
                            <E T="03">See, e.g.,</E>
                             U.S. Postal Service, Service Alerts: International Service Disruptions (last updated Jan. 30, 2026), 
                            <E T="03">https://about.usps.com/newsroom/service-alerts/international/</E>
                            .
                        </P>
                    </FTNT>
                    <P>
                        We believe, however, that our e-delivery approach should appropriately account for those individuals and other recipients of information who currently receive all or some required regulatory disclosures and reports in paper format—both by notifying them meaningfully of any upcoming transition to default e-delivery and by honoring the preferences of those covered recipients who prefer paper to express this preference and continue receiving paper promptly at no cost. We recognize that there are a variety of reasons why individuals and other recipients of information required under the Federal securities laws may prefer delivery in a paper format. Some may prefer to view certain information in paper (for example, some covered recipients may prefer the ease with which paper documents can be shared with accounting or tax service providers), while electing to have other documents delivered electronically. Further, some may prefer the physical reminder and convenience that paper delivery may bring, and some may have limited or no access to a printer. Our proposal would require covered entities to provide meaningful notifications if they decide to transition current covered recipients who receive required regulatory disclosures and reports in paper format to e-delivery, to provide similar disclosures to new covered recipients prior to using e-delivery, and would permit all covered recipients to opt out from e-delivery at any time.
                        <SU>59</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             
                            <E T="03">See infra</E>
                             sections II.B and II.C.
                        </P>
                    </FTNT>
                    <P>
                        We also recognize that e-delivery may present certain risks. Among those risks are risks associated with missed or misdirected e-delivery of PFI, in particular; privacy and cybersecurity risks associated with delivering PFI by e-delivery; and website communication system outages.
                        <SU>60</SU>
                        <FTREF/>
                         Our proposal, as discussed in more detail below, contains safeguards that are designed to address these risks.
                        <SU>61</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             We recognize that financial industry stakeholders may utilize a combination of security messages, back-end surveillance reports, and multifactor authentication that are designed to detect and combat security risks. 
                            <E T="03">See</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17. Further, we recognize that electronic media may have limitations that make them less effective at communicating information than paper and that electronic delivery and paper delivery are not fully interchangeable. For example, there can be some burdens on users associated with accessing materials online, including having to use a password to access various platforms or being required to have internet availability to access these materials, which may create disincentives and/or barriers to these materials. Also, for some, digesting complex material may be more challenging on, for example, a smartphone or computer screen than using a paper document. We also recognize that paper delivery also presents certain risks. 
                            <E T="03">See supra</E>
                             footnote 16 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>61</SU>
                             
                            <E T="03">See infra</E>
                             sections II.B and II.C.
                        </P>
                    </FTNT>
                    <P>
                        In addition, we recognize that there is a risk that covered recipients may not read and/or respond to the covered information.
                        <SU>62</SU>
                        <FTREF/>
                         Although there may be numerous reasons why a covered recipient may not read and/or be responsive to covered information delivered electronically (including delivery into a spam or similar folder), one reason may be the volume of electronically delivered covered information. Elements of our proposal may help to ameliorate these risks. By delivering covered information electronically, the covered entity would have the opportunity to make the covered information more engaging through the use of various online tools, such as calculators or hover-overs, as well as through the flexibility of formats that could be used for information delivered electronically. In turn, the more engaging disclosure delivered by e-delivery may improve the potential that the covered information would be read.
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             
                            <E T="03">See, e.g.,</E>
                             SIFMA, SIFMA Asset Management Group, Financial Services Institute, Investment Adviser Association, E-Delivery: Modernizing the Regulatory Communications Framework to Meet Investor Needs for the 21st Century (Sept. 2020), 
                            <E T="03">available at https://higherlogicdownload.s3.amazonaws.com/INVESTMENTADVISER/aa03843e-7981-46b2-aa49-c572f2ddb7e8/UploadedImages/publications/Electronic-Delivery-with-SIFMA-9-15-2020.pdf</E>
                             (recognizing that there has been a correlation between the use of the internet access approach for the delivery of proxy materials permitted by rule 14a-16 and reduced investor voting rates, but suggesting that an improved investor experience, particularly with the flexibility afforded by electronic formats—such as online access, email or a firm's mobile application—would result in greater and more meaningful investor participation).
                        </P>
                    </FTNT>
                    <P>
                        It is important for a covered recipient to be able to access the covered information, especially time-sensitive covered information, in an efficient manner. Therefore, our proposal includes certain elements that are designed to reduce barriers to a covered recipient accessing covered information electronically.
                        <SU>63</SU>
                        <FTREF/>
                         The proposed conditions in Reg E-Delivery, which we designed to help ensure that materials are delivered in a user-friendly format and provide relevant and consistent information about investors' ability to express delivery preferences (free of charge), reflect our understanding of common e-delivery practices but may differ from how some covered entities currently deliver information electronically under the E-Delivery Guidance. We address the anticipated benefits of these proposed conditions, as well as their costs, in more detail below.
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             
                            <E T="03">See infra</E>
                             sections II.B.3, II.B.4, and II.C.; 
                            <E T="03">see</E>
                             proposed Reg E-Delivery §§ 303.102(c)(1) and 303.102(c)(2) (proposed e-delivery methods which, in part, require a website address for covered information that does not include PFI that leads the covered recipient directly to the covered information). Our proposal, however, would require a process reasonably designed to safeguard covered information that includes PFI delivered electronically (for example, use of passwords) which could present some barriers to viewing information that are absent with paper delivery. 
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1)(iii)(B).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">Alternatives Considered</HD>
                    <P>Under the proposed e-delivery approach, allowable e-delivery methods would include either: (1) delivery of a statement of availability of covered information to an electronic address, or (2) direct delivery of covered information that does not include PFI to an electronic address.</P>
                    <P>
                        As an alternative to the proposed approach, we considered proposing an “access equals delivery” model or a modified version of that model for e-delivery. Under an access equals delivery approach, an issuer or intermediary would post some or all of its regulatory disclosures and reports online, rather than delivering them directly (or a notice of availability directly) to investors and other recipients of information required under the Federal securities laws by electronic means or in paper format. For example, an alternative could include an access equals delivery approach for all covered 
                        <PRTPAGE P="45894"/>
                        information that does not include PFI and for routine updates, and delivery of a statement of availability for covered information that includes PFI or that includes material changes. A covered recipient would be informed at the time of purchase (or at the start of a client/customer relationship) that covered information would be made available electronically online. This approach would require covered recipients to access a website to “pull” covered information for their investments, and would place the burden on covered recipients to seek out information without providing them any contemporaneous notification that updated disclosures are electronically available.
                    </P>
                    <P>
                        An access equals delivery approach is appropriate in certain contexts.
                        <SU>64</SU>
                        <FTREF/>
                         However, in circumstances where the Federal securities laws currently require direct delivery of disclosure, we continue to believe, as reflected in the proposed requirements of Reg E-Delivery, that a contemporaneous notification that disclosures are electronically available is necessary. Furthermore, while we appreciate that many investors and other covered recipients increasingly prefer electronic communications over paper mailings, we have no reason to believe that most covered recipients would prefer an approach where they would not receive contemporaneous notification that covered information is available online.
                    </P>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             
                            <E T="03">See, e.g.,</E>
                             rule 172 under the Securities Act, which allows issuers, brokers, and dealers to satisfy some final prospectus delivery obligations if a final prospectus is or will be on file with the Commission within the time required by the rules and other conditions are satisfied (rule 172 does not apply to offerings by registered open-end investment companies). 17 CFR 230.172; 
                            <E T="03">see also</E>
                             Examples 14 and 15, 1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3 (discussing how the requirement that supplemental sales literature be preceded or accompanied by a prospectus could be met by having the final prospectus appear in close proximity on a website or through a hyperlink to the supplemental sales literature); Securities Offering Reform Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <P>
                        In addition, we considered the appropriateness of a “notice and access” approach whereby covered recipients could receive a paper notice, such as a postcard, that information is available online. Under this approach, a covered entity would be permitted to provide a paper notice to covered recipients who have not provided an electronic address, which would include a legend as well as other information designed to alert the recipient about the type and importance of the information that is available and the website address where the information could be found. There is a limited Commission rule that currently permits this approach for certain registrants for certain communications.
                        <SU>65</SU>
                        <FTREF/>
                         However, the approach in that rule was designed for investors who did not elect to receive disclosures through e-delivery.
                        <SU>66</SU>
                        <FTREF/>
                         We anticipate that most covered recipients who provide an electronic address would be transitioned to e-delivery under the proposed rule if adopted (unless they opt out), and a covered recipient who has declined to provide an electronic address may be more likely to prefer to receive covered information in paper format. Moreover, as described below, we have concerns that such an approach would entail barriers to accessing covered information.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             
                            <E T="03">See</E>
                             17 CFR 270.30e-3 (“rule 30e-3”); s
                            <E T="03">ee infra</E>
                             section II.F.1 (discussing how rule 30e-3 applies only to delivery obligations of registered closed-end funds and certain insurance company separate accounts, and even as to those entities applies only to their obligations to deliver shareholder reports); 
                            <E T="03">see also</E>
                             17 CFR 240.14a-16.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             
                            <E T="03">See infra</E>
                             section II.F.1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             
                            <E T="03">See infra</E>
                             footnote 87 and accompanying paragraph.
                        </P>
                    </FTNT>
                    <P>
                        We also considered whether to include as part of this proposal additional measures intended to update the Commission's disclosure regime more broadly to enhance disclosure quality, including engagement with and understanding of disclosure. In recent rulemakings, the Commission has adopted approaches designed to encourage investor engagement and understanding of disclosure.
                        <SU>68</SU>
                        <FTREF/>
                         We determined, however, that such an undertaking, while important, would merit separate consideration, particularly in light of the scope of parties and information that this proposal covers.
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             
                            <E T="03">See supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <P>We request general comment on the proposed e-delivery approach (with more specific questions in the sections below about particular aspects of this approach and particular provisions of proposed Reg E-Delivery):</P>
                    <P>1. Are there risks presented by paper delivery, other than the risks identified above, that would be ameliorated by a default e-delivery system? Conversely, are there risks presented by electronic delivery that would be aggravated by a default e-delivery system?</P>
                    <P>2. What are the risks, costs, and benefits for covered recipients associated with the current standards for e-delivery? Has the balance between these costs, risks, and benefits changed with advances in technology? If so, what protections should be available to covered recipients who do not want to receive electronic communications?</P>
                    <P>3. Is our proposed general approach to e-delivery appropriate? Should we instead have proposed another approach to e-delivery, and why would that approach be preferable? If another approach would be preferable, would commenters recommend this approach universally for all covered information and for all covered entities, or only for certain categories of covered information or covered entities, and, if so, for which categories?</P>
                    <P>
                        4. More specifically, some financial industry stakeholders have suggested that the Commission permit an access equals delivery approach for institutional investors.
                        <SU>69</SU>
                        <FTREF/>
                         Those stakeholders have stated that institutional investors may have hundreds of accounts, and as a result, may receive multiple duplicative communications. Would an access equals delivery approach be appropriate for certain categories of covered recipients, such as institutional investors, but not for other covered recipients? If the proposed rule were to include different requirements based on the type of covered recipient, what should those requirements be and why? Further, if a different approach is recommended for institutional investors, how should institutional investors be defined and why? Should institutional investors be defined consistent with Financial Industry Regulatory Authority, Inc. (“FINRA”) rules, which define an institutional account as an account of entities such as a bank, registered investment company, or investment adviser registered with the Commission or with a state securities commission, or some other standard? 
                        <SU>70</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             
                            <E T="03">See, e.g.,</E>
                             FINRA Rule 4512(c); 
                            <E T="03">see also, e.g.,</E>
                             Markets in Financial Instruments Directive Annex II Part I of Directive 2014/65/EU (MiFID II), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32014L0065#anx_II</E>
                             (defining “professional client,” another possible definition to leverage for purposes the request for comment discusses).
                        </P>
                    </FTNT>
                    <P>
                        5. Further, some financial industry stakeholders have suggested that the Commission adopt an access equals delivery approach based on the type of covered information as opposed to (or in addition to) the type of covered recipient.
                        <SU>71</SU>
                        <FTREF/>
                         For example, should there be an access equals delivery approach for certain regulatory documents, such as fund prospectuses and shareholder reports, but not for other documents, such as documents that contain PFI? If so, what regulatory documents should be included in an access equals delivery approach? Would such an approach be 
                        <PRTPAGE P="45895"/>
                        preferable to an access equals delivery approach based on the covered recipient?
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Capital Group Letter, 
                            <E T="03">supra</E>
                             footnote 44.
                        </P>
                    </FTNT>
                    <P>6. Would a “notice and access” approach, as described above, be preferable to the approach in proposed Reg E-Delivery, particularly for those covered recipients who have not provided an electronic address? Why or why not?</P>
                    <P>7. Many of the policy choices in the proposal are framed in terms of our understanding of investor preferences, and shifting the burdens associated with the default method of delivering covered information based on shifts in these preferences over time. How, if at all, should our consideration of a shift in the default delivery method address other primary factors, such as information comprehension or retention when covered information is received in paper versus electronically, and should we consider factors such as the device to which the covered information is delivered?</P>
                    <P>
                        8. Are there special considerations that the Commission should address related to electronically delivering regulatory materials associated with assets that are issued or transferred using distributed ledger technology, and if so, what are these? 
                        <SU>72</SU>
                        <FTREF/>
                         To what extent could blockchain and similar technologies be used to deliver the covered information to covered recipients?
                    </P>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             In section II.B.1 below, we ask questions about whether the proposed definitions of “electronic address” and “electronic delivery” appropriately account for the delivery of covered information using blockchain or other similar technologies.
                        </P>
                    </FTNT>
                    <P>9. Are there particular international access considerations regarding e-delivery that our proposal should address, and would the proposed e-delivery rule enhance access of covered information for investors and others in non-U.S. locations? Are there concerns that our proposal would raise for non-U.S. resident covered recipients?</P>
                    <P>10. Should Reg E-Delivery also allow for any electronic delivery method agreed to between a covered entity and a covered recipient? See, for example, the scenarios discussed in Request for Comment #81 in section II.B.7 below.</P>
                    <P>11. Our proposed e-delivery rule is designed not only to provide covered recipients with covered information in the format that they prefer, efficiently and cost-effectively, but also to improve engagement with disclosures for covered recipients who currently receive covered information in paper format. Are there other aspects of the Commission's disclosure requirements that should be considered that would improve engagement with regulatory disclosures?</P>
                    <P>12. Greater use of electronic media to deliver covered information could have benefits that include the enhanced ability for covered entities to provide AI tools to help covered recipients access, understand, and use covered information. We request general information and feedback about the use of AI tools to inform our understanding of what opportunities and challenges could be associated with the use of these tools to enhance covered entities' disclosure, covered recipients' ability to access and use this disclosure, and related policy considerations.</P>
                    <HD SOURCE="HD2">B. E-Delivery Methods and Requirements</HD>
                    <HD SOURCE="HD3">1. General Use and Scope of Proposed Rule</HD>
                    <P>
                        Proposed Reg E-Delivery sets forth the conditions and circumstances under which covered entities would be permitted to use e-delivery to deliver covered information to covered recipients without first obtaining their affirmative consent. In addition, Reg E-Delivery would establish conditions under which the Commission would consider delivery requirements under the Federal securities laws to have been satisfied through e-delivery.
                        <SU>73</SU>
                        <FTREF/>
                         Reg E-Delivery, however, would permit covered entities to choose when and whether to use electronic delivery to meet their delivery obligations. For example, a covered entity could choose to limit its use of e-delivery under Reg E-Delivery to certain covered information, such as covered information that does not contain PFI, and to certain covered recipients, such as to institutional investors.
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             The ultimate responsibility for satisfying applicable delivery requirements under the Federal securities laws would remain with the covered entity to which the law assigns the responsibility to deliver covered information. Further, covered entities are reminded that the substantive requirements and liability provisions of the Federal securities laws apply equally to electronic and paper-based media. 
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.11; 1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.4. The proposed conditions are designed to reflect the principles that an electronic medium would not provide an adequate means for the delivery of required disclosure if the medium does not permit effective communication to investors or is practically unavailable, and that the use of a particular medium should not be so burdensome that intended recipients cannot effectively access the information provided. 
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.24 and accompanying text.
                        </P>
                    </FTNT>
                    <P>
                        Further, the delivery methods that we are proposing under Reg E-Delivery would not be the exclusive delivery methods that a covered entity could use to deliver covered information electronically to a covered recipient, unless a rule or statute provides otherwise.
                        <SU>74</SU>
                        <FTREF/>
                         If a covered entity develops a method of e-delivery that differs from those contemplated in Reg E-Delivery but provides assurance comparable to paper delivery that the required information will be delivered, that method could be used to satisfy the covered entity's delivery or transmission requirements under the Federal securities laws.
                        <SU>75</SU>
                        <FTREF/>
                         The use of Reg E-Delivery, however, would provide assurances that, if a covered entity satisfies its conditions when using e-delivery, the covered entity will have satisfied applicable requirements to deliver covered information under the Federal securities laws.
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             
                            <E T="03">See, e.g.,</E>
                             proposed rule 14a-16(1)(i)-(ii), discussed in section II.F.2 below.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             The Commission included similar “assurance comparable to paper delivery” language in discussing the role of the E-Delivery Guidance relative to a determination that delivery or transmission requirements are satisfied. 
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section II.B (stating that the factors discussed in the guidance are not the only factors relevant to determining whether the legal requirements pertaining to delivery or transmission of documents have been satisfied, and that if an issuer or third party develops a method of electronic delivery that differs from those discussed in the guidance, but provides assurance comparable to paper delivery that the required information will be delivered, that method may satisfy delivery or transmission obligations).
                        </P>
                    </FTNT>
                    <P>Proposed Reg E-Delivery includes two operative provisions. The first, section 303.102, includes the electronic delivery methods and requirements that a covered entity must satisfy for a covered entity to use e-delivery to deliver covered information under the rule. The second, section 303.104, is a transition rule that would address the delivery of covered information to covered recipients who are receiving any covered information in paper format at the time of the effective date of Reg E-Delivery. This section provides additional conditions that must be satisfied before a covered entity would be permitted to transition those covered recipients from default paper delivery to default e-delivery, recognizing that these covered recipients—unlike covered recipients who begin receiving information by e-delivery after any adoption of Reg E-Delivery—would be experiencing a change in the way they receive covered information. We discuss section 303.102 in section II.B of the release below, and we discuss section 303.104 in section II.D.</P>
                    <HD SOURCE="HD3">Definition of “Electronic Delivery” and “Electronic Address”</HD>
                    <P>
                        The proposed rule would define “electronic delivery” to mean the delivery of covered information to a 
                        <PRTPAGE P="45896"/>
                        covered recipient's electronic address.
                        <SU>76</SU>
                        <FTREF/>
                         The requirements for e-delivery under the proposal would entail delivery to an electronic address that a covered recipient provides (or, for example in the case of electronic addresses that are mobile applications, accepts to use) to receive covered information. Under the proposal, an electronic address would mean an identifier used to communicate with a covered recipient electronically, including: an email address; a mobile phone number; or any other means of electronic communication capable of receiving electronic delivery pursuant to an electronic delivery method that the rule sets forth and alerting a covered recipient that covered information is available.
                        <SU>77</SU>
                        <FTREF/>
                         Other means of communication could mean, for example, a social media or electronic messaging platform username or other identifier, as well as an inbox available in a covered entity's web portal, as long as each of these is capable of receiving and alerting the covered recipient about the delivery of covered information.
                        <SU>78</SU>
                        <FTREF/>
                         Our proposed definition of the term “electronic address” is designed to be technologically neutral to encompass current and future forms of electronic communications that meet the rule's requirements. For example, such forms of electronic communication could include blockchain messaging to the extent that it otherwise meets the requirements of the proposed definition and can satisfy the other requirements of the proposed rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.101.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.101.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             
                            <E T="03">See infra</E>
                             section II.B.8 for a discussion about the choice of e-delivery method when the issuer or market intermediary has multiple electronic addresses for the covered recipient.
                        </P>
                    </FTNT>
                    <P>
                        The proposed definition of “electronic address” would require that the means of electronic communication used alert the covered recipient each time that covered information is available. Such an alert could be, for example, an email, a text, a notification from an electronic application, or some other form of notification that the covered information has been delivered. This proposed requirement would help ensure that covered recipients are aware that covered information is available for them to review. The proposed requirement also recognizes that some covered information may be time sensitive and/or important to a covered recipient in making an upcoming investment-related decision or taking other action.
                        <SU>79</SU>
                        <FTREF/>
                         For example, if an investor must promptly report any inaccuracies or discrepancies regarding a trade confirmation, being alerted that a trade confirmation is available electronically would help facilitate the completion of this time-sensitive task.
                        <SU>80</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             
                            <E T="03">See also infra</E>
                             section II.B.3 for discussion about the proposed requirement that the statement of availability identify whether the covered information may require action by the covered recipient within a fixed time frame to exercise certain rights.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             Broker-dealers often require as a term of their customer account agreements that customers review and promptly report any discrepancies.
                        </P>
                    </FTNT>
                    <P>
                        If a covered entity does not have an electronic address for a covered recipient (either provided by or accepted for use by the covered recipient), the covered entity would not be able to rely on the proposed rule to deliver covered information electronically to that recipient.
                        <SU>81</SU>
                        <FTREF/>
                         Therefore, the proposed rule does not, for example, include as a method of e-delivery an approach where, for a covered recipient who has not provided an electronic address, the covered entity could send a paper postcard with instructions about how to access information electronically (such as by including a QR code or a URL where information is available online).
                        <SU>82</SU>
                        <FTREF/>
                         A covered recipient who has declined even to provide an electronic address may be relatively more likely to prefer to receive covered information in paper format and may be less likely to act on a postcard or other paper delivery informing the covered recipient that covered information is available online. Further, where an individual is relatively less technologically savvy, even if such person is generally comfortable using electronic media to access information, there could be barriers to accessing this information. These barriers could occur, for example, because the individual may encounter obstacles in using a QR code or URL that is included in a paper notice, or because the individual misplaces the paper notice before accessing the information electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             To default a covered recipient currently receiving paper into e-delivery under the proposed transition process, a covered entity must have an electronic address for the covered recipient. 
                            <E T="03">See infra</E>
                             section II.D.1; 
                            <E T="03">see also</E>
                             proposed Reg E-Delivery § 303.101 (definition of “covered recipient receiving paper”). Similarly, outside of the transition process, a covered entity may deliver covered information to a covered recipient who has not opted out of e-delivery by delivering that information to an electronic address that a covered recipient provided (or accepts to use) to receive covered information if the covered entity satisfies certain requirements. 
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(a).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">See also infra</E>
                             section II.F.1 (proposing to rescind rule 30e-3 under the Investment Company Act).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">Definition of “Covered Entity”</HD>
                    <P>
                        The e-delivery framework under proposed Reg E-Delivery would be available to any person required to deliver covered information to a covered recipient, defined collectively in the proposed rule as “covered entities.” 
                        <SU>83</SU>
                        <FTREF/>
                         The proposed definition of a “covered entity” therefore would include persons registered with the Commission under the Exchange Act, the Investment Advisers Act of 1940 (the “Advisers Act”), and the Investment Company Act, as well as persons with a class of securities registered under the Exchange Act, persons conducting securities offerings registered or exempt from the registration requirements under the Securities Act of 1933 (the “Securities Act”), persons subject to the requirements of the Trust Indenture Act of 1939 (the “Trust Indenture Act”) and other persons required by the Federal securities laws to deliver covered information to covered recipients. It also includes third parties that are required to deliver covered information to covered recipients, including, for example, bidders for third-party tender offers and dissidents in contested proxy solicitations.
                        <SU>84</SU>
                        <FTREF/>
                         Examples of “covered entities” under Reg E-Delivery, which we anticipate would be the primary entities who would rely on the proposed rule, would include:
                    </P>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.101.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             The proposed rule only includes third parties expressly required to deliver covered information to covered recipients under the Federal securities law. If a covered entity chooses to use an agent or other third party to deliver information on its behalf, the covered entity that is responsible for delivering the information under the Federal securities laws would ultimately be responsible for compliance with Reg E-Delivery.
                        </P>
                    </FTNT>
                    <P>• An issuer that is conducting a registered securities offering under the Securities Act or other parties with delivery obligations in connection with a registered securities offering;</P>
                    <P>• An issuer that is conducting a securities offering exempt from the registration requirements under the Securities Act;</P>
                    <P>• An issuer that has a class of securities registered under section 12 of the Exchange Act or that is required to file reports under section 15(d) of the Exchange Act;</P>
                    <P>• An obligor or trustee under an indenture subject to the qualification requirements of the Trust Indenture Act;</P>
                    <P>• An investment company that is registered under the Investment Company Act, including an insurance company separate account that is a management investment company offering a variable annuity or variable life insurance contract;</P>
                    <P>
                        • A business development company (as defined in section 2(a)(48) of the Investment Company Act);
                        <PRTPAGE P="45897"/>
                    </P>
                    <P>• A registered index-linked annuity or registered market value adjustment annuity contract that offers securities under the Securities Act;</P>
                    <P>• A broker or dealer that is registered under the Exchange Act;</P>
                    <P>• A municipal securities dealer that is registered under the Exchange Act;</P>
                    <P>
                        • A government securities broker or government securities dealer that is registered under the Exchange Act; 
                        <SU>85</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             Government securities brokers or dealers must comply with rules adopted by the U.S. Department of the Treasury under Title I of the Government Securities Act (“GSA”). 
                            <E T="03">See</E>
                             17 CFR 400.1(b). In 1997, Treasury issued a letter stating its view that government securities brokers or dealers registered under Section 15C of the Exchange Act (“15C firms”) may use electronic delivery for confirmations pursuant to applicable Treasury rules provided they adhere to the guidelines established in the Commission's 1995 Guidance and 1996 Guidance. 
                            <E T="03">See</E>
                             letter dated October 27, 1997 from Treasury to Michael A. Macchiaroli, Division of Market Regulation, Securities and Exchange Commission, 
                            <E T="03">available at https://www.treasurydirect.gov/laws-and-regulations/gsa/regulatory-cites/cite-10-27-1997-2/</E>
                            . This proposal does not address any obligations of government securities brokers or dealers pursuant to rules promulgated by Treasury under the GSA.
                        </P>
                    </FTNT>
                    <P>• A security-based swap dealer, a major security-based swap participant, a security-based swap execution facility, and a security-based swap data repository that is registered under the Exchange Act;</P>
                    <P>• A funding portal that is registered under rule 400 of Regulation Crowdfunding and pursuant to section 4A(a)(1) of the Securities Act;</P>
                    <P>• An investment adviser that is registered with the Commission under the Advisers Act;</P>
                    <P>• A transfer agent that is registered with the Commission under the Exchange Act or another appropriate regulatory agency as defined in section 3(a)(34)(B) of the Exchange Act; and</P>
                    <P>• Any person, including any third party, required to deliver covered information to a covered recipient pursuant to Regulation 14A, Regulation 14C, Regulation 14D, Regulation 14E, rule 13e-3 or rule 13e-4 of the Exchange Act.</P>
                    <P>
                        The proposed definition of “covered entity” is designed to help ensure that all persons that are required to deliver covered information under the Federal securities laws have available to them the same e-delivery framework under the proposed rule. However, persons that have delivery obligations to covered recipients pursuant only to the rules of self-regulatory organizations as defined in section 3(a)(26) of the Exchange Act (“SROs”)—such as municipal advisors registered with the Commission—are not included within the scope of Reg E-Delivery, because these delivery obligations are imposed solely by SRO rules.
                        <SU>86</SU>
                        <FTREF/>
                         The proposed definition of a covered entity is designed to remain evergreen by allowing for any future persons that may be required to deliver covered information. Additionally, the proposed scope of covered entities that would be permitted to rely on the proposed rule builds on the scope of persons covered by the current E-Delivery Guidance.
                        <SU>87</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             Under section 19 of the Exchange Act, the Commission may approve an SRO's proposed rule change only if it finds that the proposed rule change is consistent with the requirements of the Exchange Act, including the public interest and the protection of investors.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             
                            <E T="03">See supra</E>
                             footnote 3. The scope of entities that would be permitted to rely on the proposed rule is also consistent with the scope of covered entities in the e-delivery bills currently being considered by Congress. 
                            <E T="03">See supra</E>
                             footnote 46; 
                            <E T="03">see also infra</E>
                             section II.G.
                        </P>
                    </FTNT>
                    <P>The proposed definition of “covered entity” would include an obligor or trustee that is required to deliver covered information to a covered recipient under the Trust Indenture Act. The Trust Indenture Act regulates debt offerings, including transactions that are registered under the Securities Act and certain transactions that are exempt from Securities Act registration. Accordingly, including the Trust Indenture Act within the scope of Reg E-Delivery would help to provide a consistent e-delivery framework for Federal securities laws that frequently operate together.</P>
                    <P>
                        Unlike most delivery requirements under the Federal securities laws, the Trust Indenture Act requires certain information to be provided to indenture security holders “by mail.” 
                        <SU>88</SU>
                        <FTREF/>
                         In addition, the Commission's E-Delivery Guidance releases did not address delivery obligations under the Trust Indenture Act. As a result, there is no existing guidance available to indenture obligors or trustees that would provide assurance that they may satisfy delivery requirements under the Trust Indenture Act using e-delivery. Nonetheless, since the Commission's publication of the E-Delivery Guidance, staff has received few, if any, inquiries regarding the availability of e-delivery for delivery obligations under the Trust Indenture Act and has limited visibility into current delivery practices relating to these obligations. Accordingly, we solicit comment below on whether delivery obligations arising under the Trust Indenture Act should be included within the scope of Reg E-Delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             
                            <E T="03">See, e.g.,</E>
                             section 313(c) of the Trust Indenture Act (requiring reports to be “transmitted by mail” to indenture security holders).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">Definition of “Covered Information”</HD>
                    <P>
                        The proposed rule would use the defined term “covered information” to denote the information that is eligible to be delivered using e-delivery.
                        <SU>89</SU>
                        <FTREF/>
                         “Covered information” would be defined to mean any information required to be delivered to a covered recipient under the Securities Act, the Exchange Act, the Trust Indenture Act, the Investment Company Act, the Advisers Act, or any other of the Federal securities laws, but excludes information required to be delivered under 17 CFR part 227 (Regulation Crowdfunding), 17 CFR 240.15c2-11, or 17 CFR 240.15Fi-2 (Acknowledgment and verification of security-based swap transactions (“trade acknowledgment rule”)).
                        <SU>90</SU>
                        <FTREF/>
                         The terms “deliver” or “delivery” would be defined broadly to encompass any term used to describe the delivery of information under the Federal securities laws. Specifically, the term “deliver” or “delivery” would be defined to mean, as applicable, deliver, furnish, transmit, send, give, mail, provide, forward, make available, or disseminate information, as described under the Federal securities laws.
                        <SU>91</SU>
                        <FTREF/>
                         Covered information therefore would include, for example: (for investment companies) fund prospectuses, fund annual and semi-annual shareholder reports, notices under Investment Company Act rule 19a-1, proxy statements and information statements; 
                        <SU>92</SU>
                        <FTREF/>
                         (for issuers, other soliciting persons, and/or certain third parties) issuer prospectuses, issuer annual reports to security holders, proxy statements and information statements, tender offer statements and solicitation/recommendation statements, and offering circulars; 
                        <SU>93</SU>
                        <FTREF/>
                         (for 
                        <PRTPAGE P="45898"/>
                        obligors and indenture trustees) bondholders' lists and reports to security holders; 
                        <SU>94</SU>
                        <FTREF/>
                         (for broker-dealers) trade confirmations, disclosures pursuant to Form CRS, and Reg S-AM disclosures; 
                        <SU>95</SU>
                        <FTREF/>
                         and (for investment advisers) Form ADV Part 2 Brochures, marketing and testimonial disclosures, agency cross transaction disclosures, and custody rule account statement notices.
                        <SU>96</SU>
                        <FTREF/>
                         This list is non-exhaustive; the proposed definition of “covered information” includes disclosures not listed here but that may be required under, for example, Regulation Best Interest,
                        <SU>97</SU>
                        <FTREF/>
                         as well as disclosures that would be required of covered entities in the future under applicable laws and regulations. Covered information, however, would not include information that is required to be filed with the Commission or otherwise made available generally to the public but not delivered to particular recipients.
                        <SU>98</SU>
                        <FTREF/>
                         Consistent with the approach taken with the current E-Delivery Guidance, covered information would also not include disclosures made pursuant to any applicable state laws or SRO rules, including FINRA and the Municipal Securities Rulemaking Board (“MSRB”).
                        <SU>99</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.101.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             
                            <E T="03">Id.</E>
                             Covered entities may at times choose to voluntarily deliver additional information electronically to covered recipients or their designees beyond that which is legally required under the Federal securities laws. For such non-required information, it would not be necessary to conform the e-delivery of such information to the standards of proposed Reg E-Delivery, although we anticipate that covered entities may wish to adopt these e-delivery standards for consistency with how covered information is delivered.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>91</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>92</SU>
                             Statutes and Commission rules that may involve a requirement for an investment company to deliver covered information include, for example: 15 U.S.C. 80a-7(e); 15 U.S.C. 80a-27(e); 17 CFR 270.3a-4(a)(2)(iii); 17 CFR 270.23c-1(a)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             Statutes and Commission rules that may involve a requirement for an issuer, other soliciting person, and/or a third party to deliver covered information include, for example: 15 U.S.C. 77d(d)(3); 15 U.S.C. 77e (b)(2); 15 U.S.C. 77
                            <E T="03">lll</E>
                            (a); 15 U.S.C. 77nnn; 17 CFR 230.134; 17 CFR 230.144A(d)(4); 17 CFR 230.147(f)(3); 17 CFR 230.147A(f)(3); 17 CFR 230.153a; 17 CFR 230.153b; 17 CFR 230.173; 17 CFR 230.251(d)(2)(i)(B); 17 CFR 230.251(d)(2)(ii); 17 CFR 230.428; 17 CFR 230.433; 17 CFR 230.502(b); 17 CFR 230.502(d)(2); 17 CFR 230.605(a); 17 CFR 230.701(e); 17 CFR 240.13e-3(f); 
                            <PRTPAGE/>
                            17 CFR 240.13e-4; 17 CFR 240.14a-3(b); 17 CFR 240.14a-16; 17 CFR 240.14c-2; 17 CFR 240.14c-3(a); 17 CFR 240.14d-4; 17 CFR 240.14e-2; 17 CFR 240.14f-1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Statutes that may involve a requirement for obligors and indenture trustees to deliver covered information include, for example: 15 U.S.C. 77
                            <E T="03">lll;</E>
                             15 U.S.C. 77mmm; 15 U.S.C. 77nnn; 15 U.S.C. 77ooo(b).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Statutes and Commissions rules that may involve a requirement for broker-dealers to deliver covered information include, for example: 17 CFR 248.1-248.30; 17 CFR 248.202(c); 17 CFR 240.10b-16; 17 CFR 240.9b-1(d); 17 CFR 240.14b-1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Statutes and Commission rules that may involve a requirement for an investment adviser to deliver covered information include, for example: 15 U.S.C. 80b-5(a)(3); 17 CFR 275.204-3; 17 CFR 275.206(4)-6.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Regulation Best Interest: The Broker-Dealer Standard of Conduct, Securities Exchange Act Release No. 86031 (June 5, 2019) [84 FR 33318] (July 12, 2019)].
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             For example, covered information would not include disclosures required to be made public under Regulation FD either through filing or furnishing a Form 8-K or by disseminating the information through another method, or combination of methods, of disclosure that is reasonably designed to provide broad, non-exclusionary distribution of the information to the public. Similarly, covered information would not include a code of ethics posted to an issuer's website in order to satisfy Item 406(c) of Regulation S-K or Form ADV Part 1 filed by an investment adviser on the Investment Adviser Registration Depository (IARD).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.11. Other broker-dealer disclosures may be governed by SRO rules. For example, Reg E-Delivery may apply indirectly to the extent an SRO rule provides that members may deliver information electronically so long as it is compliant with Commission E-Delivery Guidance. 
                            <E T="03">See, e.g.,</E>
                             FINRA Rule 2231.03 (governing the delivery of customer account statements). In addition, certain delivery requirements relevant to securities accounts would not be covered as they are governed by other agencies' rules (
                            <E T="03">e.g.,</E>
                             IRS rules for Form 1099s).
                        </P>
                    </FTNT>
                    <P>Reg E-Delivery is designed to provide a framework for using e-delivery to satisfy all delivery requirements under the Federal securities laws, except to the extent Federal securities laws otherwise already explicitly permit or require e-delivery. Therefore, defining “covered information” broadly in terms of obligations under the Federal securities laws is designed to create a more consistent approach for all covered entities and help to clarify that this e-delivery framework will be available for new disclosure requirements in the future.</P>
                    <P>
                        As stated above, “covered information” excludes information required to be delivered under Regulation Crowdfunding, rule 15c2-11, and the trade acknowledgment rule for security-based swap transactions.
                        <SU>100</SU>
                        <FTREF/>
                         Each of these rules, adopted by the Commission well after the E-Delivery Guidance was issued, reflects a policy choice to require or permit an e-delivery framework tailored to these specific situations. First, with respect to Regulation Crowdfunding, the Commission determined not to require issuers to provide physical copies of information to investors, because of the unique, online-only nature of crowdfunding platforms and the fact that issuers may not have email addresses for investors.
                        <SU>101</SU>
                        <FTREF/>
                         The Commission stated that “Congress contemplated that crowdfunding would, by its very nature, occur over the internet or other similar electronic media that is accessible to the public.” 
                        <SU>102</SU>
                        <FTREF/>
                         Second, the disclosures pursuant to Rule 15c2-11(b)(5)(ii), amendments to which were adopted by the Commission in 2020, require broker-dealers to make available to certain investors, upon request, specified information that is already publicly available, and permits—but does not require—the broker-dealer to provide that information electronically.
                        <SU>103</SU>
                        <FTREF/>
                         In adopting this amendment, the Commission intended to “alleviate the concern that issuer information may be difficult for investors to locate on their own” and was designed to “make such information easier to find while providing a cost-effective means for broker-dealers to distribute” such information.
                        <SU>104</SU>
                        <FTREF/>
                         Finally, with respect to the trade acknowledgment rule, the Commission imposed an electronic delivery requirement to promote the objectives of Exchange Act section 15F(i)(1) for timely and accurate confirmation and documentation of security-based swaps.
                        <SU>105</SU>
                        <FTREF/>
                         In adopting the electronic delivery requirement, the Commission took into account its understanding that electronic delivery was the norm for security-based swap transactions, and timely delivery was particularly important to “reduce operational risk by decreasing the amount of time within which a counterparty may recognize and work to resolve any potential discrepancies in the trade documentation.” 
                        <SU>106</SU>
                        <FTREF/>
                         The Commission believes that the costs that would be imposed by changing these rules would far outweigh any perceived increased investor protection benefits, particularly in light of the fact that we are not aware of any issues in the implementation of the e-delivery framework in those rules that would merit reconsideration of the approach to e-delivery set forth therein.
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             17 CFR 227.302(a), 17 CFR 240.15c2-11(b), and 17 CFR 240.15Fi-2(c).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             
                            <E T="03">See</E>
                             Regulation Crowdfunding, Securities Exchange Act Release No. 76324 (Oct. 30, 2015) [80 FR 71388] (Nov. 16, 2015) at 71406-17407.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             
                            <E T="03">Id.</E>
                             at 71424.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             
                            <E T="03">See</E>
                             Publication or Submission of Quotations Without Specified Information, Securities Exchange Act Release No. 89891 (Sept. 16, 2020) [85 FR 68124] (Oct. 27, 2020) at 68135.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             
                            <E T="03">See</E>
                             Trade Acknowledgment and Verification of Security-Based Swap Transactions, Securities Exchange Act Release No. 78011 (June 8, 2016) [81 FR 39808 (June 17, 2016)], at 39817.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">Definition of “Covered Recipient”</HD>
                    <P>
                        The proposed rule would use the defined term “covered recipient” to mean any current or prospective customer, client, investor, security holder (including an indenture security holder), counterparty, or similar recipient to whom a covered entity is required to deliver covered information.
                        <SU>107</SU>
                        <FTREF/>
                         This term is designed to include those persons to whom covered entities have delivery obligations under the Federal securities laws and rules. As there already are regulatory requirements for registered entities that provide for delivery of appropriate information to government entities, the proposed definition of “covered recipient” does not include the Commission, another Federal or state regulator, or SRO.
                        <SU>108</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             Proposed Reg E-Delivery § 303.101. As discussed below, Reg E-Delivery as proposed includes requirements for covered recipients who, as of the rule's effective date, are currently receiving any covered information in paper, where the covered entity wishes to transition to using e-delivery as the default method of delivery. 
                            <E T="03">See infra</E>
                             section II.D.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             
                            <E T="03">See supra</E>
                             footnote 99 and accompanying text.
                        </P>
                    </FTNT>
                    <PRTPAGE P="45899"/>
                    <P>
                        The “similar recipient of information” language in the proposed definition of “covered recipient” is designed to include any legal representative of a covered recipient or any other person whom the covered recipient has designated to receive covered information on the recipient's behalf. Covered recipients may in certain circumstances need to designate other persons or entities to receive covered information in addition to or instead of the covered recipient. This may be the case, for example, for financial professionals assisting investors, family members monitoring the finances of elderly relatives or legal representatives of a covered recipient (
                        <E T="03">e.g.,</E>
                         trustees who represent the assets of a natural person, executors, conservators, and persons holding a power of attorney for the covered recipient). The “similar recipient of information” also would include any person who is no longer a current customer (or similar) but to whom a covered entity is required to deliver certain covered information based on a prior obligation to deliver information. For example, covered entities may be required to send notifications regarding the unauthorized access or use of a former customer's information under Regulation S-P.
                        <SU>109</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             
                            <E T="03">See</E>
                             17 CFR 248.30(a)(4), (d)(1)(i)(B).
                        </P>
                    </FTNT>
                    <P>We request comment on the general use and scope of proposed Reg E-Delivery:</P>
                    <P>
                        13. Is the proposed definition of “electronic delivery” appropriate? The proposed definition of the term “deliver” or “delivery” is designed to encompass all terms under the Federal securities laws that refer to delivery. Are there other terms that should be included? Would an alternative approach to the definition of “deliver” or “delivery” be preferred? Should the proposed rule instead incorporate a broader definition, such as including a provision like “an electronic method reasonably designed to ensure receipt of such regulatory document by the investor,” similar to what is included in currently unenacted Congressional legislation? 
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">See supra</E>
                             footnote 46.
                        </P>
                    </FTNT>
                    <P>14. Is the proposed definition of “electronic address” appropriate? The proposed rule would permit a covered entity to deliver covered information to a covered recipient's electronic address that is capable of receiving covered information and alerting the covered recipient that covered information is available. Are these conditions appropriate, and would these conditions be able to be satisfied for all types of electronic addresses that covered entities and covered recipients may wish to use (for instance, web-based portals and mobile applications)? Would it be readily understood that these could be included in the definition as “any other means of electronic communication capable of receiving electronic delivery pursuant to an electronic delivery method as set forth in section 303.102(c) and alerting a covered recipient that covered information is available”? Would the “capable of . . . alerting” condition raise questions in the context of mobile applications to the extent that a mobile application can be “offloaded” (generally meaning core installation files are removed but certain user-specific information, such as log-in information, is saved), and the mobile application no longer provides “push” notifications that information is available? Similarly, would this condition raise questions in the context of mobile applications to the extent that app notifications can be limited or disabled by the user? Are there other conditions regarding an electronic address that the proposed rule should impose? Are there additional forms of electronic addresses that we should include as examples of an electronic address in the rule's definition?</P>
                    <P>15. We designed our proposed definitions of “electronic address” and “electronic delivery” to be technologically neutral. As such, our proposed definitions of “electronic address” and “electronic delivery” would include the use of blockchain or similar technology to deliver covered information, to the extent blockchain messaging otherwise meets the requirements of the proposed definitions and can satisfy the other requirements of the proposed rule. Do the proposed definitions of “electronic address” and “electronic delivery” achieve the goal of being technologically neutral, and are these definitions appropriately evergreen to account for future technological advancements?</P>
                    <P>
                        16. Are there broader concerns associated with the use of particular types of electronic addresses for e-delivery, such as concerns regarding the sufficiency or reliability of notice provided to covered recipients? If so, please describe the nature of these concerns, including any specific address types (
                        <E T="03">e.g.,</E>
                         email, mobile phone number, web portal, or app-based notifications) that may present challenges in ensuring timely and effective notice. Are there additional safeguards or requirements the Commission should consider to address these concerns?
                    </P>
                    <P>17. The Commission acknowledges that there is a risk that covered information could be delivered to a spam or similar folder associated with an electronic address or that the covered information could be mistaken for a phishing attempt. Are there guardrails that the Commission should impose on covered entities to address the risk of misdirected or mistaken e-delivery?</P>
                    <P>18. In addition, the Commission acknowledges that there is risk, as there is with paper delivery, that the covered information may not be opened. This could occur for multiple reasons, including because the covered recipient may have a paper delivery preference, but did not express that delivery preference, or because of the volume of electronic communications that the covered recipient receives. Even though there are no required regulatory guardrails to address this risk in the context of paper delivery, are there any requirements we should include in Reg E-Delivery? For example, would requiring read receipts on emails help address these concerns in the context of e-delivery, and if so, why? Relatedly, could these concerns be addressed by tools, such as AI tools, that could alert the covered recipient that there is covered information available to review?</P>
                    <P>
                        19. When a covered recipient provides an electronic address, the covered recipient may expect to view covered information through that address or through the website of the covered entity. For example, a covered recipient may provide an electronic address that is an email, but the covered entity may require the covered recipient to download a mobile application or log into a website portal to view the covered information, such as covered information that contains PFI. Should Reg E-Delivery include limits on the use of an electronic address such as a mobile application or a website portal to view covered information if the steps to access the covered information are overly burdensome (and if so, how should this be defined)? 
                        <SU>111</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             We discuss a related point below relating to “reasonable access” to covered information available on a website. 
                            <E T="03">See infra</E>
                             footnote 135 and accompanying text.
                        </P>
                    </FTNT>
                    <P>
                        20. Rather than requiring a covered entity to have an electronic address for a covered recipient, as proposed, we considered proposing an approach whereby, if a covered entity does not have a covered recipient's electronic address, the covered entity could instead send a paper notification alerting such covered recipient that covered information is available online. 
                        <PRTPAGE P="45900"/>
                        Do commenters agree with our rationale, discussed above, for not proposing this approach? Is it appropriate that, as proposed, we require that a covered entity deliver covered information to a covered recipient's electronic address for a covered entity to rely on Reg E-Delivery to deliver covered information electronically to the covered recipient? Would the use of a paper notification alerting the covered recipient that covered information is available be a viable alternative to requiring that the covered entity have an electronic address for the covered recipient? If so, should this alternative be limited to publicly available covered information (
                        <E T="03">e.g.,</E>
                         prospectuses, investment adviser brochures, Regulation Best Interest disclosures, Form CRS) or to covered information not containing PFI? Should such an approach be prohibited where the covered information is time-sensitive and requires the covered recipient to act within a set time frame? How would commenters respond to the Commission's concerns about recipients encountering barriers to accessing information electronically, as described above?
                    </P>
                    <P>21. To what extent do covered entities anticipate relying on proposed Reg E-Delivery if adopted? Are some categories of covered entities more likely to rely on it than others? And are there certain types of covered information currently delivered in paper that would be particularly more likely to be delivered electronically under proposed Reg E-Delivery? If so, which?</P>
                    <P>22. Should the definition of “covered entity” include an obligor or trustee under an indenture subject to the qualification requirements of the Trust Indenture Act? If not, why? Are there any entities with delivery obligations under the Trust Indenture Act that should be excluded from the definition of “covered entity”? Are there are any specific delivery obligations or types of information required to be provided pursuant to the Trust Indenture Act that should be excluded from the definition of “covered information”? If so, why? How do obligors and trustees currently deliver information required to be provided pursuant to the Trust Indenture Act? How do they provide such information “by mail”? Would it be more efficient for obligors and trustees to deliver such information electronically, or are the current method(s) of delivery sufficient? If available, please provide data to support your views on any of the foregoing.</P>
                    <P>23. Should government securities brokers or dealers registered with the Commission under Section 15C of the Exchange Act be excluded from the definition of “covered entity”?</P>
                    <P>24. Are there entities that have delivery obligations under the Federal securities laws (other than those expressly excluded from the proposed rule) that the proposed definition of “covered entity” would not capture? If so, what are they and should they be eligible to use the Reg E-Delivery framework?</P>
                    <P>25. Should the definition of “covered information” include information delivered pursuant to SRO delivery requirements, including, at a minimum, information that requires delivery to consumers in writing and that may need an exemption from the E--SIGN Act to allow for default e-delivery?</P>
                    <P>26. Is the proposed definition of “covered information” appropriate? If not, why? What would be an appropriate definition of “covered information”? Is there another term that would be more appropriate to use to designate information that is eligible to be delivered using e-delivery under the proposed rule than “covered information”? Should the Commission define specific types of information that would be “covered information” under Reg E-Delivery? Are there any types of information that should be excluded from the definition of “covered information” under Reg E-Delivery? Under the proposal, “covered information” only captures information “required to be delivered,” and therefore disclosures that are provided in connection with covered entities' anti-fraud or fiduciary obligations are not included as “covered information,” because specific disclosures are not required to be delivered in connection with anti-fraud or fiduciary obligations. Should these disclosures, however, be included in the definition of “covered information”?</P>
                    <P>
                        27. Are there types of information included in the proposed definition of “covered information” that could be problematic or even unsuitable for e-delivery generally, or unsuitable for e-delivery under the proposed framework? If so, what are they and why would they be problematic or unsuitable? Are the proposed exclusions from “covered information” (
                        <E T="03">i.e.,</E>
                         information required under Regulation Crowdfunding, the trade acknowledgement rule, and rule 15c2-11) appropriate? Should the Commission revise those separate rules accordingly so that delivery of the information pursuant to each of those rules would be covered under Reg E-Delivery?
                    </P>
                    <P>28. Instead of, or in addition to, the principles-based definition of covered information, should we provide in the rule a non-exhaustive list of the disclosures for which covered entities may rely on Reg E-Delivery? Are there certain covered entities for which greater specificity of what constitutes covered information would be helpful? What are those entities and why would additional specificity be helpful or needed?</P>
                    <P>29. Would the proposed definition of “covered information” risk disruption to any types of offerings where offering participants may currently satisfy delivery obligations (including those imposed as a condition to reliance on any Commission rule or safe harbor from registration) using e-delivery? For example, the Commission has little visibility into how issuers and others comply with delivery conditions of the Regulation S and rule 144A safe harbors. To the extent offering participants in these markets currently rely on e-delivery, would including these delivery conditions within the scope of the proposed rule potentially disrupt those markets or create unnecessary burdens? What would be the nature, extent, costs and benefits of any such disruptions or burdens?</P>
                    <P>30. Is the proposed definition of “covered recipient” appropriate? Why or why not? The term “similar recipient to whom a covered entity is required to deliver covered information” is designed to include, for example, any person who is no longer a current customer (or similar) but to whom a covered entity is required to deliver certain covered information based on a prior obligation to deliver information, such as under Regulation S-P. Should the definition instead more specifically address persons with whom a covered entity formerly had a customer, client, or similar relationship?</P>
                    <P>31. Should legal representatives of covered recipients or others whom the covered recipient has designated to receive covered information be specifically included in the definition of “covered recipient”? Please explain.</P>
                    <P>32. Are there any other types of relationships or groups of individuals that should be included in the proposed definition of “covered recipient”? If so, why? Are any of the types of persons included in the proposed definition of “covered recipient” not appropriate? If so, why?</P>
                    <HD SOURCE="HD3">2. Disclosure of E-Delivery</HD>
                    <P>
                        Under the proposed rule, a covered entity may deliver covered information to a covered recipient who has not opted out of e-delivery by delivering that information to an electronic address that a covered recipient provided (or 
                        <PRTPAGE P="45901"/>
                        accepted to use) to receive covered information if the covered entity satisfies certain requirements.
                        <SU>112</SU>
                        <FTREF/>
                         The covered entity generally must provide certain disclosures to such covered recipients before using e-delivery.
                        <SU>113</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(a).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b); 
                            <E T="03">see also infra</E>
                             section II.D (describing a special provision requiring certain notices to be provided to covered recipients receiving any covered information in paper form as of the effective date of Reg E-Delivery).
                        </P>
                    </FTNT>
                    <P>
                        To rely on proposed Reg E-Delivery, a covered entity that intends to e-deliver covered information by default would need to provide a clear and conspicuous disclosure to the covered recipient that describes the types of covered information that will be delivered electronically to the electronic address the covered recipient provides (or accepts to use) to receive covered information, unless the covered recipient opts out of e-delivery.
                        <SU>114</SU>
                        <FTREF/>
                         If applicable, this disclosure must state whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity. Alternatively, for a covered entity that intends only to use e-delivery where a covered recipient affirmatively elects to receive covered information electronically,
                        <SU>115</SU>
                        <FTREF/>
                         the required disclosure would need to state that the covered recipient may opt to have covered information delivered electronically to the electronic address the covered recipient provides or accepts to use to receive covered information.
                        <SU>116</SU>
                        <FTREF/>
                         For new covered recipients, covered entities, whether they are pursuing default e-delivery or an opt-in approach, could incorporate these required disclosures into their onboarding or account opening processes.
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b)(1)(i); 
                            <E T="03">see also infra</E>
                             section II.B.3 (discussing the rule's applicability in circumstances where a covered recipient's request for paper or to opt out of e-delivery could result in potential restrictions on or termination of the covered recipient's relationship with the covered entity).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             Reg E-Delivery would not preclude a covered entity from continuing to obtain affirmative consent from covered recipients, instead of using e-delivery as the default method of delivery, if the covered entity prefers this approach. 
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b)(1)(ii). Section II.H 
                            <E T="03">infra</E>
                             addresses scenarios relating to the transition from the E-Delivery Guidance to Reg E-Delivery, including for covered entities that have obtained affirmative consent to e-delivery from certain covered recipients in the past in reliance on past guidance and may wish to continue obtaining affirmative consent going forward. Such affirmative consent could be obtained, for example, by electronic means, and also could be obtained telephonically as long as a record of that consent (containing as much detail as any written or electronic consent including whether the consent obtained is global and what electronic media will be used) is retained. As discussed below in section II.E, we are proposing in Reg E-Delivery an exemption from the consumer consent requirements of the E-SIGN Act (which includes the means by which such consent must be provided under the E-SIGN Act).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b)(1)(ii).
                        </P>
                    </FTNT>
                    <P>
                        The proposed disclosure requirement is designed to help ensure that covered recipients who provide an electronic address to receive covered information are aware of how the covered entity intends to use the electronic address in communicating with the covered recipient and to inform the covered recipient of the specific items of covered information that will be electronically delivered using the covered recipient's electronic address. For the covered recipients of covered entities that do not intend to pursue the default e-delivery model under Reg E-Delivery, the disclosure would inform such covered recipients that they need to affirmatively elect to receive covered information electronically if that is their preference.
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             As discussed below, we are proposing that covered information delivered under proposed Reg E-Delivery would be exempt from the consumer consent requirements of the E-SIGN Act (to the extent it otherwise would have been subject to such requirements), including the related consumer disclosure requirements. 
                            <E T="03">See infra</E>
                             section II.E.
                        </P>
                    </FTNT>
                    <P>
                        Under the proposed rule, covered information may be delivered to an electronic address that a covered recipient provides to receive covered information, such as an email address or mobile phone number that the covered recipient provides to the covered entity, or to an electronic address that the covered recipient “accepts to use” to receive covered information, such as an inbox in a mobile application or in a covered entity's web portal that a covered recipient agrees to use. For example, a covered recipient that provides an email address to a covered entity in the process of onboarding with that entity would be assumed to be comfortable with receiving communications from the covered entity about a variety of matters and thus would be deemed to have “provided” that email address “to receive covered information” within the meaning of the proposed rule. Similarly, when a covered recipient, for example, uses a mobile application or an online account to access covered information, a covered recipient has “accepted to use” that mobile application or online account as an electronic address to receive covered information under the proposal by taking steps that indicate a willingness to receive covered information at that electronic address.
                        <SU>118</SU>
                        <FTREF/>
                         However, a covered recipient has not provided or accepted to use an electronic address to receive covered information if the covered recipient provided the address only for a purpose other than to receive covered information, for example, in a request for technical support. It also would not be appropriate for a covered entity to use an electronic address that a covered recipient has provided solely in circumstances that indicate that the recipient may not wish to receive covered information electronically (such as requesting paper copies of proxy materials in the context of rule 14a-16 under the Exchange Act). In addition to the other content the previous paragraph describes, the disclosure also must describe the methods of electronic delivery that may be used (
                        <E T="03">i.e.,</E>
                         a statement of availability or direct delivery of covered information, as described in more detail below).
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             By contrast, a covered entity may receive an electronic address for a covered recipient from an affiliated entity or from a third party. In such a case, receipt by the covered entity of the covered recipient's electronic address from a person other than a covered recipient generally would not meet the requirement that the electronic address be provided by a covered recipient to receive covered information, and the proposed rule would not permit this covered entity to commence e-delivery to this covered recipient by providing a disclosure of e-delivery to this electronic address. 
                            <E T="03">But see infra</E>
                             requests for comment in this section II.B.2 (requesting comment on whether covered entities should be permitted to use an electronic address provided by affiliates or other third parties under some circumstances).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b)(2).
                        </P>
                    </FTNT>
                    <P>
                        A covered entity would not be required to provide the disclosure of e-delivery to a covered recipient who received e-delivery of all covered information by or on behalf of the covered entity as of the effective date of the rule, because those covered recipients already are receiving regulatory communications at the electronic address they have provided.
                        <SU>120</SU>
                        <FTREF/>
                         Similarly, a covered entity would not be required to provide this disclosure to a covered recipient who received an initial notice, as described below, because such a recipient would be subject to a special provision that requires covered entities to provide separate specific disclosures to them about the upcoming transition to default e-delivery.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b)(3).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">Id.; see also infra</E>
                             section II.D.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirement to provide disclosure of e-delivery:</P>
                    <P>
                        33. Is the requirement that covered entities provide a clear and conspicuous disclosure before using e-delivery to deliver covered information to a covered 
                        <PRTPAGE P="45902"/>
                        recipient necessary? Why or why not? Do commenters agree that this disclosure would help ensure that covered recipients who provide an electronic address are aware of how the covered entity intends to use the electronic address in communicating with the covered recipient?
                    </P>
                    <P>34. Is allowing covered entities to e-deliver covered information to an electronic address that the covered recipient provides (or accepts to use) to receive covered information appropriate? Why or why not? Is there another way we could specify the type of electronic address that can be used for electronic delivery to address the goal that covered entities would not use electronic addresses that covered recipients would not expect to be used for such a purpose?</P>
                    <P>35. Should Reg E-Delivery, as proposed, require that the electronic address to which a covered entity may e-deliver covered information be one that the covered recipient “provides” or “accepts to use” to receive covered information? Would it be difficult for a covered entity to determine whether a covered recipient has provided or accepted to use an electronic address to receive covered information, particularly when the electronic address is an online account or mobile app that a covered recipient may use for multiple purposes aside from viewing covered information, such as placing orders or monitoring investment values? How would covered entities implement this requirement?</P>
                    <P>
                        36. Are there circumstances under which Reg E-Delivery should permit a covered entity to use an electronic address for a covered recipient that the covered entity receives from an affiliate or from a third party, rather than directly from the covered recipient? If so, what are those circumstances and how would permitting such use be consistent with the goal of ensuring that covered recipients who provide an electronic address are aware of how the electronic address will be used and what types of covered information will be electronically delivered to that electronic address? For example, are there circumstances under which an underwriter of a securities offering should be permitted to use an electronic address provided to the issuer in the offering, or vice versa? Or, if a covered recipient is onboarded though one covered entity but will receive products or services from another, affiliated covered entity that is part of the same enterprise, should the latter covered entity be permitted to use the electronic address that the covered recipient provided to the former covered entity? Or if a covered recipient is onboarded through one covered entity that contracts with another, unaffiliated covered entity to provide services for the covered recipient (
                        <E T="03">e.g.,</E>
                         an introducing broker-dealer contracting with a clearing broker-dealer, or a separately managed account program sponsor contracting with an investment adviser managing accounts in the program), should the latter covered entity be permitted to use the electronic address that the covered recipient provided to the former covered entity?
                    </P>
                    <P>37. Should the requirement to disclose e-delivery, as proposed, exclude covered recipients who received e-delivery of all covered information as of the effective date of Reg E-Delivery, as well as covered recipients who received an initial notice under Reg E-Delivery as described below in section II.D? Why or why not?</P>
                    <P>
                        38. Should covered entities be required to describe the methods through which covered information may be delivered in the disclosure of e-delivery, as proposed, or would an alternative approach be more appropriate? 
                        <SU>122</SU>
                        <FTREF/>
                         For example, should covered entities be required to specify how each individual item of covered information will be delivered? If so, would this have the effect of “locking in” covered entities to a particular e-delivery method or preventing them from changing to the other method (if permissible under the proposed rule)? 
                        <SU>123</SU>
                        <FTREF/>
                         If the disclosure of e-delivery requires the delivery method for each item of covered information to be specified, should covered entities be required to notify covered recipients before changing the method? If so, how? Or should the disclosure of e-delivery itself indicate the specified method is subject to change?
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             
                            <E T="03">See also infra</E>
                             section II.D.2 (posing a similar question in the context of the transition period for default e-delivery).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             
                            <E T="03">See infra</E>
                             section II.B.5 (describing the proposed requirements for the delivery of covered information that contains PFI).
                        </P>
                    </FTNT>
                    <P>
                        39. We understand that covered entities generally maintain records of covered recipients' consent to receive covered information via e-delivery both to operationalize and implement e-delivery to these recipients and to document compliance with delivery requirements under the Federal securities laws, the entity's policies and procedures, and any applicable recordkeeping requirements under the Federal securities laws.
                        <SU>124</SU>
                        <FTREF/>
                         We anticipate that similar practices would continue following any adoption of proposed Reg E-Delivery and are therefore not proposing an express recordkeeping provision regarding the disclosure of e-delivery. Should we instead include a direct, dedicated recordkeeping provision in Reg E-Delivery that would require covered entities to maintain records regarding the provision of the disclosure of e-delivery? Or should such a provision be included in the books and records rules of the respective categories of covered entities (as applicable)?
                    </P>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.22 (“Issuers and other persons required to satisfy delivery requirements should consider establishing record-keeping or other procedures to evidence satisfaction of applicable requirements through electronic means. Presumably, such procedures would be analogous to comparable procedures followed when a paper document is delivered.”).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. Delivery of Statement of Availability of Covered Information to an Electronic Address</HD>
                    <P>
                        Under the proposed rule, a covered entity could choose to deliver covered information by delivering a statement of availability of covered information to a covered recipient's electronic address, which would alert the covered recipient that the covered information is available at a website address that the statement of availability provides. The proposed rule would require this method for covered information that includes PFI, as described in more detail below, and would permit this method for all other covered information.
                        <SU>125</SU>
                        <FTREF/>
                         The statement of availability of covered information would be subject to certain timing, format, content, and manner of delivery requirements, as described below.
                        <SU>126</SU>
                        <FTREF/>
                         We understand that many covered entities already employ comparable methods to alert covered recipients of the online availability of investor materials, statements, account changes, or payments.
                        <SU>127</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             
                            <E T="03">See</E>
                             discussion of the delivery of covered information that includes PFI at 
                            <E T="03">infra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             The proposed content requirements for statements of availability do not address the content requirements of the covered information that is delivered via a statement of availability. Electronically delivered documents must be prepared, updated, and delivered consistent with the provisions of the Federal securities laws in the same manner as paper documents.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25, at 6 and 15 (stating that asset managers often deliver a notice or electronic communication to investors, alerting them to the availability of materials such as annual reports or prospectuses on the fund's website); 
                            <E T="03">see also</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44 (stating that firms already use mobile phone applications, text, and email alerts to provide important notifications to customers).
                        </P>
                    </FTNT>
                    <P>
                        First, the statement of availability would be required to include a prominent statement identifying the covered entity and the type of covered information that is available.
                        <FTREF/>
                        <SU>128</SU>
                          
                        <PRTPAGE P="45903"/>
                        Identifying the covered information being delivered via the statement of availability and the covered entity delivering the information would help ensure that covered recipients understand the information available to them. Second, the statement of availability must include a brief description of the covered information that, as applicable, identifies whether the covered information may require action by the covered recipient within a fixed time frame to exercise certain rights, and whether the covered information is delivered by a person delivering on behalf of the covered entity.
                        <SU>129</SU>
                        <FTREF/>
                         Brief descriptions of the covered information would inform covered recipients of the information available and could increase the likelihood that they click through and review the information.
                        <SU>130</SU>
                        <FTREF/>
                         For some types of covered information, it would be appropriate for the brief description to simply explain the content of the covered information in a few words (
                        <E T="03">e.g.,</E>
                         that a trade confirmation provides information about recent securities transactions in the customer's account). In other cases, it would be appropriate for the brief description to include additional detail, for instance to clarify for the covered recipient the time frame within which an action must be taken or the party sending the covered information to the covered recipient (
                        <E T="03">e.g.,</E>
                         situations where the covered recipient receives competing statements from the issuer and a third party, such as third-party tender offers and contested proxy solicitations). We would encourage covered entities to design their statements of availability so as to increase their salience, user-friendliness, and enhance covered recipients' understanding of the required regulatory disclosures delivered.
                        <SU>131</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1)(i).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1)(ii). For example, shareholders voting by proxy must do so by the deadline specified in proxy materials, and shareholders tendering shares into an offer must do so by the deadline specified in tender offer materials.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">See</E>
                             Form CRS Relationship Summary; Amendments to Form ADV, Investment Advisers Act Release No. 5247 (June 5, 2019) [84 FR 33492 at 33507 and 33527-28] (July 12, 2019)] (“CRS Release”) (discussing the use of text features to make information more engaging, accessible, and effective while providing hyperlinks or other means to facilitate access to additional information); 
                            <E T="03">see also</E>
                             Form CRS, pp. 3-5 (describing the use of references and hyperlinks or other means of facilitating access to additional information); Broadridge Letter, 
                            <E T="03">supra</E>
                             footnote 17 (stating that in Broadridge's operational data on e-delivery open- and click-through rates show that descriptive and engaging user-friendly notifications increased engagement).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             
                            <E T="03">See</E>
                             Broadridge Letter, 
                            <E T="03">supra</E>
                             footnote 17 (stating that Broadridge's operational data on e-delivery open and click-through rates show that for 17.9 million statements e-delivered in March 2025, click-through rates were four times greater (at 17%) for email deliveries that provided direct notification each time a new disclosure document was available, along with user-friendly summary information, than for e-deliveries of the plain vanilla variety (at 4%)).
                        </P>
                    </FTNT>
                    <P>
                        Third, the statement of availability would be required to include a link to the website address where the covered information is available.
                        <SU>132</SU>
                        <FTREF/>
                         The rule would define “website” as “an internet website or other internet- or electronic-based location where information is stored or presented, such as a mobile application, to which a covered recipient has been provided reasonable access.” 
                        <SU>133</SU>
                        <FTREF/>
                         The purpose of this definition is to capture the standard websites and mobile applications that covered entities use today to provide information to covered recipients while remaining flexible enough to evolve with e-delivery practices and other technological advances that may impact those practices.
                        <SU>134</SU>
                        <FTREF/>
                         Other internet or electronic-based locations where information is stored or presented could include, for example, smartphone apps or other mobile platforms. The “reasonable access” requirement of the definition is meant to ensure that such electronic locations are easily accessible to covered recipients and do not involve overly burdensome restrictions on access including fee requirements or the collection of nonessential information (for instance, related to marketing) or otherwise that may inhibit expedient navigation to covered information.
                        <SU>135</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.101(c)(1)(iii).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.101.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             We note that the CRS Release discussed the use of evergreen concepts to expand the types of technology referenced in the instructions to keep them relevant as new technologies continue to be developed. 
                            <E T="03">See supra</E>
                             footnote 125, at 84 FR 33507.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             Processes reasonably designed to safeguard covered information (
                            <E T="03">e.g.,</E>
                             passwords, multifactor authentication) would not be considered as negating the provision of reasonable access. However, as an example, predicating account access on the completion of surveys to collect nonessential data, such as data on covered recipient preferences that the covered entity would use to market additional products or services to the covered recipient, would negate the provision of reasonable access. A covered entity would not be deemed to have provided a covered recipient with reasonable access to a mobile application merely by making the application generally available to download.
                        </P>
                    </FTNT>
                    <P>
                        The website address in the statement of availability would need to meet the proposed rule's requirements for website availability of covered information.
                        <SU>136</SU>
                        <FTREF/>
                         As described in more detail below, these website availability requirements are designed to help ensure that covered information is available for an appropriate time period and presented in a convenient format for covered recipients to review and retain.
                        <SU>137</SU>
                        <FTREF/>
                         The statement of availability would also have to state that covered information made available on a website may be superseded by subsequent versions of the covered information.
                        <SU>138</SU>
                        <FTREF/>
                         This is intended to put covered recipients on notice that covered information will not be available indefinitely and therefore that they may need to download or print such documents should they need them for their personal records.
                        <SU>139</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1)(iii)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             
                            <E T="03">See</E>
                             discussion at 
                            <E T="03">infra</E>
                             section II.C.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery §§ 303.102(c)(1)(iv) and 303.103.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See infra</E>
                             section II.C (discussing requirements for availability period of covered information to remain on the website address that the statement of availability includes).
                        </P>
                    </FTNT>
                    <P>
                        With respect to covered information that does not include PFI, the website address would need to lead directly to the covered information that is described in the statement of availability.
                        <SU>140</SU>
                        <FTREF/>
                         In many circumstances, these disclosures may already be posted on the covered entity's public-facing website pursuant to applicable Commission rules or otherwise and the statement of availability could link directly to the specific covered information it delivers. Investors and other covered recipients are more likely to review information that they can access directly. They are less likely to review information if they must click through multiple pages to access it or if they are directed to a landing page where they have to sort through a large number of documents that are not the subject of the statement of availability received by the covered recipient (
                        <E T="03">e.g.,</E>
                         a landing page with covered information for funds not held by the covered recipient).
                        <SU>141</SU>
                        <FTREF/>
                         This proposed requirement is consistent with other Commission disclosure requirements that rely on hyperlinks.
                        <SU>142</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1)(iii)(A); 
                            <E T="03">see also infra</E>
                             section II.B.5 (discussing the delivery of covered information that includes PFI). While covered information that does not contain PFI would not require the use of a process reasonably designed to safeguard PFI, it could be accessible within a personalized electronic portal (such as a covered recipient's online account or app).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             For example, Broadridge notes that it can take one step or upward of a dozen steps to review disclosures on an application creating significant “friction” and “fall-off” rates that impair effective disclosure. Broadridge Letter, 
                            <E T="03">supra</E>
                             footnote 17.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             
                            <E T="03">See</E>
                             CRS Release, 
                            <E T="03">supra</E>
                             footnote 125; 
                            <E T="03">see also</E>
                             Form CRS pp. 4-5; 
                            <E T="03">see also</E>
                             Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at text accompanying nn.441-443 (describing requirements for the website address where required information is available, appearing on the cover page of a fund shareholder report, which 
                            <PRTPAGE/>
                            website must permit an investor to navigate to required documents with a single click or tap).
                        </P>
                    </FTNT>
                    <PRTPAGE P="45904"/>
                    <P>Finally, the statement of availability would also be required to include a prominent statement describing the following topics:</P>
                    <P>• The covered entity's obligation to provide a paper copy of the covered information free of charge, upon request;</P>
                    <P>• The ability to opt out of e-delivery at any time and receive all or a subset of covered information provided after the opt-out in paper format, free of charge;</P>
                    <P>• The ability to update one's electronic address free of charge (including, if applicable, an explanation of how to change the type of electronic address that will be used for delivery, such as email or mobile phone number); and</P>
                    <P>
                        • The process for a covered recipient to request paper copies, opt out of e-delivery, and update one's electronic address, which at a minimum must direct a covered recipient to a website through which one can make these requests and updates. If applicable, a covered entity must disclose whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity.
                        <SU>143</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1)(v).
                        </P>
                    </FTNT>
                    <FP>
                        As discussed in more detail in sections II.B.7 and II.B.8 below, covered entities would be obligated, under the proposed rule, to provide paper copies of covered information on request and to permit covered recipients to opt out of e-delivery going forward and to update their electronic addresses, all free of charge. The proposed rule requires covered entities to describe these obligations of covered entities and the process for a covered recipient to make these requests in statements of availability to help ensure that covered recipients are aware of these options and are able to easily act upon them if they choose to do so. We understand that there are certain firms with e-delivery business models that currently reserve the right, when a person establishes a customer or client relationship with such firm or otherwise through contract, to restrict or close the account of a person who requests paper.
                        <SU>144</SU>
                        <FTREF/>
                         In such circumstances, under the proposed rule, if the covered entity could restrict or terminate a customer account or relationship after a covered recipient requested paper or opted out of e-delivery, it must describe this approach in response to the rule's requirement to explain the process for requesting paper and opting out of e-delivery and disclose any relevant restrictions associated with a covered recipient's request for paper or to opt out of e-delivery. This requirement is designed to inform covered recipients of the potential consequences that may result from requesting a paper copy of covered information or opting out of e-delivery under these circumstances.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             
                            <E T="03">See</E>
                             requests for comment in 
                            <E T="03">infra</E>
                             section II.B.7; 
                            <E T="03">see also</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at text accompanying n.16 (stating that the Commission recognized that various offerings might now be made exclusively through electronic means).
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirements associated with the proposed statement of availability of covered information as a method of e-delivery under the rule:</P>
                    <P>40. Is it appropriate that the proposed rule permits delivery of a statement of availability of covered information to a covered recipient's electronic address as an e-delivery method? Are there other methods of e-delivery we should consider?</P>
                    <P>41. Do covered recipients have certain preferences in how statements of availability are presented? Would covered recipients favor a statement of availability as opposed to direct delivery of information in certain circumstances over others?</P>
                    <P>42. Are the proposed content requirements for a statement of availability reasonable? Should we require, as proposed, the prominent statement alerting the covered recipient that covered information is available and identifying the covered information and the covered entity?</P>
                    <P>
                        43. The proposed content requirements for statements of availability do not address the content requirements of covered information, and do not change the requirements for covered information under the provisions of the Federal securities laws. In addition to the proposed requirements of Reg E-Delivery, should we include a requirement reflecting the principle that covered information delivered through e-delivery must present information in substantially the same order as would otherwise be required when the same covered information is delivered in paper format? 
                        <SU>145</SU>
                        <FTREF/>
                         Would this unduly constrain the format or effectiveness of electronically delivered covered information or curtail covered entities' ability to develop a more personalized, interactive, and efficient experience with regulatory disclosure through e-delivery?
                    </P>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.20; 1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section II.A.
                        </P>
                    </FTNT>
                    <P>44. Should the brief description of the covered information provided by the covered entity be optional instead of mandatory as proposed? Do the proposed mandatory brief descriptions have the potential to be overly burdensome or unnecessary? If they were optional, for which types of covered information do commenters expect covered entities to provide a brief description on an optional basis, and what content would they include in the brief description? We are aware that certain email functionality exists that provides “previews” of documents to give covered recipients a portion of the information in the document being made available and the ability to click into the document on the covered entity's website. How would such functionality interact with the statement of availability and direct delivery requirements outlined in the proposed rule?</P>
                    <P>45. Should covered recipients be required to indicate how long each item of covered information would be available on the website in the statement of availability rather than only being required to state that covered information made available on a website may be superseded by subsequent versions of the covered information, as proposed?</P>
                    <P>46. Is the proposed definition of “website” as an internet website or other internet or electronic-based location where information is stored or presented, such as a mobile application, to which a covered recipient has been provided reasonable access, appropriate? Would this definition remain evergreen as technologies develop? Would another term be more descriptive and broadly encompassing of the range of potentially applicable technologies that could serve to make covered information available?</P>
                    <P>47. Is the proposed requirement that the website address included in the statement of availability lead the covered recipient directly to the covered information appropriate? Are there instances in which a small number of “clicks” to navigate to the covered information would not be burdensome or confusing for covered recipients?</P>
                    <P>
                        48. Should we require the inclusion of the website address where the covered information is available as proposed, or should we provide flexibility on this requirement? Are there potential cybersecurity or fraud concerns with providing links to websites where covered recipients provide passwords or other similar credentials to access covered information?
                        <PRTPAGE P="45905"/>
                    </P>
                    <P>49. Is covered information provided electronically pursuant to the current E-Delivery Guidance generally available on websites? Is the covered information made available through the use of a password or other credentials? When is information available on a secure website that requires a password or other credentials versus on the public-facing portion of a website? To facilitate easy access to covered information that does not contain PFI, should we expressly prohibit log-ins or similar processes that precede a covered recipient's access to covered information that is delivered through a statement of availability, or is requiring the website address where the covered information is available that is included in the statement of availability to lead the covered recipient “directly” to the covered information, as proposed, sufficient? Would such an express prohibition interfere with covered entities' ability to provide links to online account inboxes or similar personalized portals in statements of availability?</P>
                    <P>50. Should we include the reasonable access provision in the website definition? Should we define “reasonable access” in the proposed rule? If so, how should we define it? Should “reasonable access” mean that a covered recipient can access an internet website or other internet or electronic-based location without undue burden or complexity, fees or charges, or surveys or other unnecessary prerequisites? In addition to requiring the payment of additional fees, the submission of additional customer or investor information, or an excessive number of “clicks” to access covered information, are there any other practices that would prevent reasonable access? As an alternative to the proposal, should the rule explicitly permit covered entities to require covered recipients to download mobile applications or another similar means of facilitating access to view covered information, or should the rule prohibit this practice as an unreasonable limitation?</P>
                    <P>
                        51. Should we require, as proposed, that statements of availability include a prominent statement describing the covered entity's obligation to provide a paper copy of covered information upon request, the covered recipient's ability to opt out of e-delivery and update the covered recipient's electronic address, and the processes for covered recipients to make these choices? Do commenters have different suggestions for the content of the prominent statement in statements of availability? In addition, should we require, as proposed, that statements of availability, if applicable, must disclose whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity? Should we also, as proposed, require a similar disclosure to be included in the disclosure of e-delivery and the initial transition notice? 
                        <SU>146</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.2; 
                            <E T="03">infra</E>
                             section II.D.2.
                        </P>
                    </FTNT>
                    <P>52. We are not proposing an express recordkeeping provision in proposed Reg E-Delivery relating to the statement of availability. Should we instead include a direct, dedicated recordkeeping provision in Reg E-Delivery that would require covered entities to maintain a record of the statement of availability? Or should such a provision be included in the books and records rules of the respective categories of covered entities (as applicable)?</P>
                    <HD SOURCE="HD3">4. Direct Delivery of Covered Information That Does Not Include Personal Financial Information to an Electronic Address</HD>
                    <P>
                        The proposed rule also provides an option for covered entities to deliver covered information directly to an electronic address.
                        <SU>147</SU>
                        <FTREF/>
                         Under this approach, the covered entity must include all of the covered information being delivered either in the body of the communication or as an attachment. This method would not be permitted for covered information that includes PFI, but would be permitted for all other covered information, based on the assumption that some documents are not suitable for direct delivery. This would provide covered entities flexibility in how they communicate with covered recipients and reflect that covered recipients may have different preferences about how they receive and access covered information delivered electronically. There also may be circumstances where direct delivery of covered information may facilitate ease of access to covered information, increasing the likelihood that a covered recipient would review the disclosure by minimizing the clicks necessary to access the covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(2).
                        </P>
                    </FTNT>
                    <P>
                        A message directly delivering covered information would include substantially the same information that we propose to require for statements of availability regarding the nature of the information being delivered and the covered entity's obligation to provide paper copies upon request or permit covered recipients to update their electronic address.
                        <SU>148</SU>
                        <FTREF/>
                         These disclosures would be equally relevant to covered recipients regardless of whether they receive information directly or via a statement of availability, and are designed to provide covered recipients with prominent disclosures about covered entities' obligations and processes associated with providing covered information in the format covered recipients prefer.
                        <SU>149</SU>
                        <FTREF/>
                         In addition, the proposed rule would require direct delivery to include all of the covered information being delivered either in the body of the communication or as an attachment 
                        <SU>150</SU>
                        <FTREF/>
                         (in either case presented in a widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format).
                        <SU>151</SU>
                        <FTREF/>
                         These requirements are designed to help ensure that a covered recipient receives complete covered information through direct delivery and is able to easily 
                        <PRTPAGE P="45906"/>
                        review and preserve that covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             In addition, direct deliveries of covered information would be subject to the same prominence requirements as described in proposed Reg E-Delivery § 303.102(c)(1). 
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(2). We discuss the application of the proposed rule to covered entities that reserve the right, when a person establishes a customer or client relationship with such firm or otherwise through contract, to restrict or close the account of a person who requests paper at 
                            <E T="03">supra</E>
                             footnote 144 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             Proposed Reg E-Delivery § 303.102(c)(2) states that “the direct delivery of the covered information must include the information described in paragraphs (c)(1)(i), (c)(1)(ii), and (c)(1)(v) [pertaining to the statement of availability].”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             Covered recipients would be permitted to include some of the information in the body of the communication and some as an attachment to the same communication as long as all of the covered information is included in the delivery.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             
                            <E T="03">Id.</E>
                             Additionally, we note that other Commission rules include similar “convenient for reading and printing” requirements regarding the electronic presentation of covered information. 
                            <E T="03">See, e.g.,</E>
                             17 CFR 230.498 Summary Prospectuses for open-end management investment companies (stating that materials must be on the website in a format, or formats, that are convenient for both reading online and printing on paper), 17 CFR 240.14a-16 internet availability of proxy materials (stating that the materials “must be presented on the website in a format, or formats, convenient for both reading online and printing on paper”), 17 CFR 270.30e-3 (stating that the materials “must be presented on the website in a format, or formats, that are convenient for both reading online and printing on paper”), and Form CRS Release 
                            <E T="03">supra</E>
                             footnote 130 at text accompanying nn.144-168 (stating that firms may use various tools to facilitate access to electronic media). The proposed “convenient for reading . . . being printed . . . and permanently retaining” requirements in Reg E-Delivery also reflect the principle that there should be an opportunity to retain a permanent record of information delivered electronically. 
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at text following n.22; 1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.22; 
                            <E T="03">see also</E>
                             proposed Reg E-Delivery § 303.103(c) and 
                            <E T="03">infra</E>
                             section II.C.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirements for the direct delivery of covered information to an electronic address:</P>
                    <P>53. Should we allow for the direct delivery of covered information to electronic addresses?</P>
                    <P>54. Would covered recipients prefer the direct delivery of covered information when possible as opposed to a statement of availability format? Should we require the direct delivery of information for certain types of covered information or in certain circumstances?</P>
                    <P>55. Are there unique cybersecurity or fraud risks associated with the direct delivery of covered information, as opposed to other types of information that covered entities deliver to investors, customers, clients, or other recipients?</P>
                    <P>56. Are there any difficulties in providing direct disclosure to a covered recipient's electronic address? For example, are there problems delivering large file sizes, formatting documents, or operational difficulties in providing information directly for any particular categories of covered information? If so, for which categories, and should we modify the proposed rule as a result, or are these factors that covered entities should consider in determining how and whether to deliver covered information directly?</P>
                    <P>57. Should we be less prescriptive with regard to any of the proposed requirements for direct delivery to facilitate evolving technology or types of disclosure? For example, would the proposed requirement that covered information be presented in a widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format, limit the ability to include electronic tools or overlays in electronically presented covered information? Are there any particular requirements in the proposed rule we should remove or modify so as to make the rule more evergreen over time or to enable covered recipients to develop more interactive or engaging user experiences with electronically delivered covered information?</P>
                    <P>58. Should we provide additional detail regarding what would constitute delivering information in a widely available format that is convenient for reading in electronic format? For example, should we specify whether this requires optimization for mobile devices? Do covered entities currently e-deliver covered information in a format that optimizes for or permits reading on mobile devices?</P>
                    <HD SOURCE="HD3">5. Delivery of Covered Information That Includes PFI</HD>
                    <P>
                        The proposed rule defines PFI and includes conditions for the e-delivery and website availability 
                        <SU>152</SU>
                        <FTREF/>
                         of covered information containing PFI that are designed to provide enhanced protections for this sensitive information. We are proposing to define PFI as information specific to a covered recipient's personal financial matters, such as an account number or details regarding a specific securities transaction.
                        <SU>153</SU>
                        <FTREF/>
                         The examples in the proposed definition are non-exclusive. The proposed definition is consistent with the definition of PFI used in the 1996 Guidance, where the Commission recognized the “need to maintain the confidentiality and security” of PFI.
                        <SU>154</SU>
                        <FTREF/>
                         The Commission recognizes the need to protect the confidentiality and security of this information has only grown as the use of technology has become more pervasive and threats have increased.
                        <SU>155</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             
                            <E T="03">See infra</E>
                             section II.C.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             Proposed Reg E-Delivery § 303.101. PFI would include information related to non-natural persons, such as the account numbers or details regarding specific securities transactions of an institution or business entity.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section II.B.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             Internet crime has increased as the use of the internet has risen. 
                            <E T="03">See</E>
                             Federal Bureau of Investigation, 2024 internet Crime Report (Apr. 23, 2025) at 3, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.ic3.gov/AnnualReport/Reports/2024_IC3Report.pdf</E>
                             (stating that during its infancy 25 years ago, the FBI Crime Complaint Center received roughly 2,000 complaints every month, whereas, over the past five years the Center has averaged 2,000 complaints a day). For instance, in 2024, individuals reported 64,882 complaints regarding Personal Data Breach and 21,403 complaints regarding Identity Theft to internet Crime Complaint Center, a significant increase over the FBI's reported 2019 statistic. 
                            <E T="03">See id.</E>
                             at 9; 
                            <E T="03">see also</E>
                             Federal Bureau of Investigation, 2019 internet Crime Report (Feb. 11, 2020) at 15, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.ic3.gov/AnnualReport/Reports/2019_ic3Report.pdf</E>
                            ; 
                            <E T="03">see also</E>
                             2025 FINRA Annual Regulatory Oversight Report (Jan. 2025) at 3, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.finra.org/sites/default/files/2025-01/2025-annual-regulatory-oversight-report.pdf</E>
                             (“describing increasing cybersecurity and cyber-enabled fraud risks”).
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule would not permit the e-delivery of covered information containing PFI through the direct delivery method described above.
                        <SU>156</SU>
                        <FTREF/>
                         In 1996, the Commission stated that information specific to personal financial matters required intermediaries to take reasonable precautions to ensure the integrity, confidentiality, and security of that information. As discussed in the 1996 Guidance, PFI can be found in a variety of materials. For example, the information reported to customers in trade confirmations under Exchange Act rule 10b-10 relates to specific securities transactions and includes the identity and number of shares bought or sold and the net dollar price for the shares. Under Exchange Act rule 10b-16, a broker-dealer that imposes finance charges on a customer's account during a quarterly period must deliver a quarterly statement disclosing, among other things, the account's beginning and closing balances as well as debits and credits entered during the period. Similarly, under Advisers Act rule 206(3)-2, investment advisers engaging in agency cross transactions involving clients are required to send the clients disclosure about those transactions. Additionally, under Exchange Act rule 17a-3(a)(17), a broker-dealer must furnish each customer within 30 days of opening an account and thereafter at intervals no greater than 36 months, a copy of the account record, which may include PFI.
                    </P>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.4.
                        </P>
                    </FTNT>
                    <P>We recognize that certain covered information, such as trade confirmations, can be consequential because of their importance in identifying potential discrepancies or fraud. For example, confirmations of transactions that brokers-dealers send to their customers pursuant to Exchange Act rule 10b-10 may contain information requiring prompt action by the recipient (such as an apparent error or an indication of possible fraudulent activity) and are commonly retained by customers as personal financial records, including for tax purposes. Moreover, if an unauthorized person accesses this PFI, it puts a covered recipient at risk of substantial harm. For instance, someone may use the information to improperly access the covered recipient's financial accounts. For these reasons, it is appropriate to require covered entities to take reasonable precautions to ensure the integrity, confidentiality, and security of PFI in covered information delivered to covered recipients electronically.</P>
                    <P>
                        Many covered entities already have obligations to protect the security of such information. For example, under Regulation S-P, broker-dealers, investment companies, registered investment advisers, and transfer agents are required to develop, implement and maintain written policies and procedures that address administrative, technical, and physical safeguards for the protection of customer information.
                        <SU>157</SU>
                        <FTREF/>
                         These policies and procedures must include an incident response program that is reasonably designed to detect, respond to, and recover from unauthorized access to or use of customer information, including 
                        <PRTPAGE P="45907"/>
                        customer notification procedures.
                        <SU>158</SU>
                        <FTREF/>
                         Under Regulation S-P, the response program must include procedures for the covered institution to notify each affected individual whose sensitive customer information was, or is reasonably likely to have been, used without authorization, unless the covered institution determines, after a reasonable investigation of the facts and circumstances of the incident of unauthorized access to or use of sensitive customer information, that the sensitive customer information 
                        <SU>159</SU>
                        <FTREF/>
                         has not been, and is not reasonably likely to be used in a manner that would result in substantial harm or inconvenience. Covered institutions that hold transactional accounts for consumers may also be subject to Regulation S-ID.
                        <SU>160</SU>
                        <FTREF/>
                         Such entities must develop and implement a written identity theft program that includes policies and procedures to identify relevant types of identity theft red flags, detect the occurrence of those red flags, and respond appropriately to the detected red flags. Other statutes and regulations beyond the Federal securities laws may also require similar protections of PFI.
                        <SU>161</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             17 CFR 248.30.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">See</E>
                             Regulation S-P Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13. Large entities were required to comply with amended Regulation S-P by December 3, 2025, and smaller entities are required to comply by June 3, 2026. All 50 states and the District of Columbia impose some form of data breach notification requirement under state law. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             
                            <E T="03">See</E>
                             17 CFR 248.30(d)(9). Sensitive customer information is defined as any component of customer information alone or in conjunction with any other information, the compromise of which could create a reasonably likely risk of substantial harm or inconvenience to an individual identified with the information.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Regulation S-ID applies to “financial institutions” or “creditors” that offer or maintain “covered accounts.” Entities that are likely to qualify as financial institutions or creditors and maintain covered accounts include most registered brokers, dealers, funding portals, investment companies, and some registered investment advisers. 
                            <E T="03">See</E>
                             17 CFR 248.201; 
                            <E T="03">see also</E>
                             Identity Theft Red Flag Rules, Investment Advisers Act Release No. 3582 (Apr. 10, 2013) [78 FR 23637 (Apr. 19, 2013)]; 
                            <E T="03">see also</E>
                             17 CFR 227.403(b).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             
                            <E T="03">See, e.g.,</E>
                             16 CFR 314 (Federal Trade Commission Standards for Safeguarding Customer Information).
                        </P>
                    </FTNT>
                    <P>
                        Many covered entities have already chosen to use an approach akin to the proposal's statement of availability, instead of direct delivery, to address confidentiality and security concerns that arise in connection with the e-delivery of covered information containing PFI or other non-public information. Covered entities commonly will deliver an electronic notification informing a recipient that information is available, while providing access to the document via a link to a secure website such as an online portal.
                        <SU>162</SU>
                        <FTREF/>
                         The website offers enhanced security measures, including encryption and multi-factor authentication.
                        <SU>163</SU>
                        <FTREF/>
                         Additionally, covered entities may utilize back-end surveillance protocols designed to detect suspicious online activity patterns.
                        <SU>164</SU>
                        <FTREF/>
                         This method of delivery provides greater security than if the information were delivered directly to a covered recipient's email account, which may not implement the same degree of security precautions. Generally, we are concerned that direct delivery would not sufficiently ensure the integrity, confidentiality, and security of covered information containing PFI.
                        <SU>165</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25, at n.13 (“For investor-specific forms that contain non-public information, the notice informs investors their statement or tax form is available. Investors are then free to log into their account, using pre-existing authentication credentials (often multi-factor), to retrieve their personalized content.”); 
                            <E T="03">see also</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, at 6 and 13. This commonly appears in guidance to customers regarding e-delivery. 
                            <E T="03">See e.g.,</E>
                             LPL Financial at 
                            <E T="03">https://www.lpl.com/investors/lpl-account-view/going-paperless.html</E>
                             (“While email is used to notify you when you have new documents available, any documents that contain sensitive personal or financial information must be protected by a secure login process.”), J.P. Morgan at 
                            <E T="03">https://am.jpmorgan.com/us/en/asset-management/adv/shareholder-account-access/edelivery/edelivery-faqs/</E>
                             (“No personal information regarding your account will be sent via email. Instead you will be emailed a notification that new regulatory materials are available and the email will include a link to the document that you are required to receive.”), and Fidelity Investments at 
                            <E T="03">https://digital.fidelityinvestments.com/edelivery</E>
                             (“Fidelity will send you an email notification as soon as your documents are available for viewing online. The email includes a convenient direct link to the documents area within NetBenefits.com. To protect your security, log in is required.”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44, at 8-9; 
                            <E T="03">see also</E>
                             CCMR Letter, 
                            <E T="03">supra</E>
                             footnote 44, at 4-5; Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, at 6; ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25, at 6.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">See</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, at 6.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">But see infra</E>
                             requests for comment in this section II.B.5 (asking whether direct delivery of covered information containing PFI should be permitted in some circumstances).
                        </P>
                    </FTNT>
                    <P>
                        Accordingly, the proposed rule would require covered entities to deliver covered information containing PFI solely via a statement of availability and would require that such information be protected by a process reasonably designed to safeguard the PFI.
                        <SU>166</SU>
                        <FTREF/>
                         As noted above, the Commission understands that many covered entities already e-deliver documents containing PFI via a statement of availability or secure means, and do not directly deliver those documents to a covered recipient's email address.
                        <SU>167</SU>
                        <FTREF/>
                         This requirement is designed to reduce the likelihood that non-authorized persons can access the covered recipient's PFI and to help ensure that the PFI is protected in a secure environment provided by the covered entity or its service providers so that the PFI is reasonably safe from potential inadvertent disclosure or misuse.
                        <SU>168</SU>
                        <FTREF/>
                         A process reasonably designed to safeguard PFI could include the use of passwords (currently the most common means of securing sensitive information), but also could include other processes reasonably designed to safeguard information.
                        <SU>169</SU>
                        <FTREF/>
                         Such processes could include, for example and where appropriate, two-factor authentication, biometrics, cryptography or other technologies that have not yet been developed. These other processes may provide enhanced security, be easier for covered recipients to use, or provide other benefits over the use of passwords.
                    </P>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             Proposed Reg E-Delivery § 303.102(c)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">See supra</E>
                             footnote 162 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             discussion of requirements for website availability at 
                            <E T="03">infra</E>
                             section II.C.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">See</E>
                             discussion and accompanying text at 
                            <E T="03">supra</E>
                             footnote 135.
                        </P>
                    </FTNT>
                    <P>
                        In addition, the proposed rule would require that the website address included in the statement of availability lead directly to the covered information immediately after the covered recipient completes the process reasonably designed to safeguard the PFI.
                        <SU>170</SU>
                        <FTREF/>
                         This requirement is designed to facilitate easy access to the covered information after the completion of the safeguarding process and maximize the likelihood that covered recipients review the covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             Proposed Reg E-Delivery § 303.102(c)(1)(iii).
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirements associated with the delivery of covered information that includes PFI:</P>
                    <P>59. Does the rule, as proposed, contain sufficient protections for e-delivery of covered information containing PFI? If not, what additional requirements should the Commission impose? Are there other methods of securely delivering covered information containing PFI, aside from those we have proposed, that we should specify?</P>
                    <P>
                        60. Does the rule, as proposed, contain unnecessary restrictions on the e-delivery of covered information containing PFI? If so, should we instead permit more flexible or principles-based alternatives? Do existing laws or regulations (
                        <E T="03">e.g.,</E>
                         Regulation S-P) already provide sufficient protections for the e-delivery of covered information containing PFI?
                    </P>
                    <P>
                        61. What safeguards do covered entities now use to protect e-delivery of covered information containing PFI? Is 
                        <PRTPAGE P="45908"/>
                        the proposed rule largely consistent with current industry practices? If not, how is it different? How are covered entities currently delivering this information electronically? How do the proposed requirements regarding the delivery of covered information containing PFI compare to privacy laws or other regulations regarding the delivery of materials containing personal information that may be applicable in non-U.S. jurisdictions where covered entities operate or have covered recipients? How do covered entities currently handle delivering materials containing personal information across multiple jurisdictions with potentially different regimes, and how would the proposed requirements interact with them?
                    </P>
                    <P>
                        62. Should we prohibit the direct delivery of covered information containing PFI to a covered recipient's electronic addresses, as proposed? Are there circumstances where prohibiting the delivery of covered information containing PFI to a covered recipient's electronic address creates problems for the necessary communication of information to covered recipients (for example, situations where a covered recipient asks for their trade confirmations to be sent directly to their email)? Are there current practices whereby covered information containing PFI can potentially be directly delivered in a secure manner, or are such practices reasonably anticipated, such that we should provide exceptions for the direct delivery of covered information containing PFI to electronic addresses? 
                        <SU>171</SU>
                        <FTREF/>
                         If so, what should be the parameters for such an exception? What would the costs of the proposal be for covered entities that currently deliver PFI in a secure manner and their recipients?
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             For example, we understand that some covered entities may be able to directly deliver materials with embedded multifactor authentication. ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25, at 6.
                        </P>
                    </FTNT>
                    <P>63. Instead of providing the option of direct delivery, should the rule require covered entities to deliver a statement of availability of covered information for all covered information under the rule, and not just covered information including PFI? What would be the costs and benefits of such a requirement? To what extent would restrictions such as requiring user ID and password affect the speed with which recipients access such information and the likelihood they would access it at all?</P>
                    <P>
                        64. Does the proposed definition of the term “personal financial information” appropriately capture the type of information that should be subject to heightened protections? If not, how should the definition be changed? Are there other terms, such as “sensitive customer information” as used in Regulation S-P,
                        <SU>172</SU>
                        <FTREF/>
                         that would be more appropriate here because they capture additional pieces of information that are included in existing covered information delivery requirements and should be subject to heightened protections beyond those already provided by existing privacy law? Are there other terms that would capture less information, to the extent commenters believe this would be appropriate? If so, what are they and why would those terms be more appropriate?
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             
                            <E T="03">See</E>
                             17 CFR 248.30(d)(9); 
                            <E T="03">see also</E>
                             Regulation S-P Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <P>65. Should we require covered information that contains PFI to be accessed only through the use of a process reasonably designed to safeguard the covered information, as proposed? Are there other conditions that we should require for accessing covered information that contains PFI? If so, what are they?</P>
                    <P>66. Is the language we use to describe a secure log-in method as a “process reasonably designed to safeguard the personal financial information” reasonably clear? Will such language remain evergreen as secure electronic systems that safeguard PFI evolve with technology over time?</P>
                    <HD SOURCE="HD3">6. Timing, Form, and Manner of E-Delivery</HD>
                    <P>
                        The proposed rule provides that the e-delivery (whether statement of availability or the direct delivery of covered information) must be delivered 
                        <SU>173</SU>
                        <FTREF/>
                         no later than the date by which the covered information is required to be delivered under the Federal securities laws.
                        <SU>174</SU>
                        <FTREF/>
                         This provision is designed to ensure that covered entities provide covered information within the same time frame as they would provide paper documents. This proposed requirement also is consistent with the Commission's E-Delivery Guidance stating that documents delivered using e-delivery should be prepared, updated, and delivered consistent with the provisions of the Federal securities laws in the same manner as paper documents.
                        <SU>175</SU>
                        <FTREF/>
                         Moreover, requiring e-delivery of covered information no later than specified in the Federal securities laws would help ensure that covered recipients can take appropriate actions in response to the receipt of covered information, including actions that require a prompt response or a decision by the covered recipient within a certain time frame. For example, for covered information containing PFI, untimely delivery could cause a covered recipient to fail to identify problematic or fraudulent activity in their account as promptly as would be desirable.
                    </P>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.101 (defining “deliver” or “delivery” to mean, as applicable, to deliver, furnish, transmit, send, give, mail, provide, forward, make available, or disseminate information, as described in the Federal securities laws).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(d). We recognize that there may be circumstances where there are e-delivery failures including bounce-backs. 
                            <E T="03">See</E>
                             discussion at 
                            <E T="03">infra</E>
                             section II.B.9 regarding identifying and mitigating e-delivery failures.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3. The 1995 Guidance also provides that the Federal securities laws do not preclude the delivery of a document through different media.
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule states that a statement of availability may provide that multiple items of covered information are available for review in a single statement, and similarly, a direct delivery may include multiple items of covered information.
                        <SU>176</SU>
                        <FTREF/>
                         This provision provides flexibility to covered entities to place more than one item of covered information in a single delivery if, for example, it reduces the logistical and operational burdens of e-delivery. It also recognizes that delivering items of covered information that relate to the same investment or relationship together can improve the covered recipient's ability to contextualize and understand the covered information, as well as the fact that delivering certain items of covered information together (where not prohibited under the Federal securities laws) is currently a common business practice and, in some cases, a practical necessity to comply with the requirements of the Federal securities laws.
                        <SU>177</SU>
                        <FTREF/>
                         Under the proposed rule, a covered entity delivering multiple pieces of covered information may also choose to combine the two methods of delivery in a single delivery, for example, by sending a statement of availability for one piece of covered information to the covered recipient's electronic address and attaching another related piece of covered information as a direct delivery, provided that all of the requirements of the proposed rule are 
                        <PRTPAGE P="45909"/>
                        met for each piece of covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(e).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             For example, a covered recipient may purchase shares of an investment company through a broker-dealer. In such circumstances, the proposed rule would permit the broker-dealer to send a statement of availability of a trade confirmation and a statutory prospectus together. 
                            <E T="03">See also</E>
                             section 5(b)(2) of the Securities Act (making it unlawful to deliver a security for the purpose of sale or for delivery after sale unless the security is accompanied or preceded by a prospectus).
                        </P>
                    </FTNT>
                    <P>In addition, the proposed rule provides that a statement of availability or direct delivery of covered information must be delivered separately from communications that are not covered information, except as otherwise provided under the Federal securities laws. Additionally, the statement of availability or direct delivery would need to contain only the content required by the proposed rule, except that it also may include any content expressly required under the Federal securities laws, and pictures, logos, or similar design or text elements that are not misleading and do not make the covered information unclear. This would allow a covered entity to include, for example, contact information for questions about the covered information or technical support for the covered recipient's account, as such information would not make the covered information unclear.</P>
                    <P>These requirements for form and manner of e-delivery are designed to help ensure that the e-delivery is not lost or buried in other communications or marketing materials so that covered recipients are more likely to see the e-delivery and review the covered information. Specifically, the separate delivery requirement is meant to ensure that other documents do not obscure the regulatorily required covered information. For example, certain marketing materials that are not regulatory disclosures required under the Federal securities laws, or other mail from affiliates of the covered entity, should not obscure the covered information that is required to be delivered. The proposed requirements would also help ensure that the e-delivery contains only the content required by the rule with no superfluous information, clearly describes the available information, outlines the process to review the items in the case of statements of availability, and (as described in more detail below) discusses how to change delivery preferences.</P>
                    <P>We request comment on the proposed timing, form, and manner of delivery requirements:</P>
                    <P>67. Should we include the timing of electronic delivery requirements in the proposed rule? Or, is this provision duplicative of existing timing requirements imposed by the Federal securities laws?</P>
                    <P>68. Should we require that covered information be delivered electronically no later than the date by which the covered information is required to be delivered under the Federal securities laws, as proposed?</P>
                    <P>69. Are there any delivery requirements under the Federal securities laws that raise unique timing requirements that this provision would affect? If so, what are they and how should we modify the timing requirements in these cases?</P>
                    <P>70. Should we change the timing of when a statement of availability must be delivered or direct delivery made to a covered recipient's electronic address and, if so, how? Explain how such changes would enhance the likelihood that the covered recipient would pay attention to the disclosure or disclosures or otherwise would improve the disclosure experience.</P>
                    <P>71. Should the proposed rule generally require the statement of availability or the direct delivery of covered information to be delivered separately from other communications that are not covered information, as proposed? Would this increase the likelihood that covered information is noticed and reviewed? Are there circumstances where they should be permitted to be included with other types of communications? Or, would the separate delivery requirement result in an excessive number of electronic deliveries that could deter recipients from noticing and reviewing covered information? Should the statements of availability and direct deliveries, as proposed, only contain the content required under the rule with exceptions for including any content expressly required under the Federal securities laws, and pictures, logos, or similar design or text elements that are not misleading and do not make the covered information unclear? Is this formulation sufficiently principles-based to ensure that the disclosures are prominent and clear while providing covered entities appropriate flexibility in the design of their electronic deliveries? Should we provide covered entities greater flexibility in the information they include?</P>
                    <P>72. Should we require separate communications for each item of covered information or allow statements of availability and direct deliveries to include multiple items of covered information, as proposed?</P>
                    <P>73. Should we adopt any other form and manner requirements for e-delivery? For example, should we specifically incorporate plain English concepts? Should we adopt any particular font, headings, white space, or formatting requirements to make disclosures easier to read? Should the Commission consider factors other than design, delivery, and content?</P>
                    <HD SOURCE="HD3">7. Obligation of Covered Entities To Provide Paper Copies of Covered Information and Permit Opting Out of E-Delivery</HD>
                    <P>
                        The proposed rule provides that a covered entity must send, free of charge, one paper format copy of any of the covered information that the covered entity has delivered through e-delivery to a covered recipient during the period the covered entity is required to retain the covered information under the Federal securities laws (or during the preceding two years if there is no such requirement), to any such covered recipient requesting such a copy. The covered entity must send the copy of the covered information by U.S. first class mail or another reasonably prompt means within three business days after receiving a request, unless otherwise specified in the Federal securities laws.
                        <SU>178</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(f)(1); 
                            <E T="03">see also infra</E>
                             text accompanying footnote 195 (discussing that the proposed requirements for a covered entity to comply with covered recipients' elections to receive paper, as a practical matter, would entail relevant operations and compliance systems, as well as related recordkeeping).
                        </P>
                    </FTNT>
                    <P>
                        The delivery of paper versions of covered information upon request would facilitate ease of access to and review of covered information by covered recipients through their preferred method. Requiring covered entities to send a paper copy of covered information electronically delivered during the applicable record retention period would provide a reasonable amount of time for covered recipients to request current and historical covered information in paper format.
                        <SU>179</SU>
                        <FTREF/>
                         In addition, limiting the obligation to provide copies in paper format to the time period covered entities are already required to maintain the item of covered information as a record would help ensure that covered entities are able to accommodate requests for paper copies and help control the operational and logistical costs imposed on covered entities to do so. If there is no applicable record retention requirement under the Federal securities laws,
                        <SU>180</SU>
                        <FTREF/>
                         the proposed 
                        <PRTPAGE P="45910"/>
                        rule provides that a covered entity must send, upon request, one paper copy of any item of covered information delivered through e-delivery to a covered recipient in the two years preceding the date of the covered recipient's request. This provision imposes a requirement on covered entities as to how long they must provide free copies in paper format to covered recipients in the absence of a specific record retention requirement for the requested item of covered information. The proposed two-year retention period would align with the two-year period referenced in the E-Delivery Guidance,
                        <SU>181</SU>
                        <FTREF/>
                         and provides a reasonable period of time for covered recipients to request a paper copy of covered information given that this covered information was previously delivered electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             For example, Exchange Act rule 17a-4 requires broker-dealers to retain certain records for six years; rule 31a-2 under the Investment Company Act requires funds to maintain records for a period of not less than six years; and rule 204-2 under the Advisers Act requires advisers to maintain records for a period of not less than five years. Covered entities may, as permitted by these or similar recordkeeping rules, maintain these records electronically and print them to facilitate requests for paper documents.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             For example, there is no record retention requirement for proxy statements or annual reports required to be furnished to security holders under Regulation 14A. Proxy statements and annual 
                            <PRTPAGE/>
                            reports are, however, filed and submitted, respectively, on EDGAR.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">See</E>
                             1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.17 (“the Commission believes it is reasonable to expect that broker-dealers would provide customers with information in paper form upon request for a period of two years”).
                        </P>
                    </FTNT>
                    <P>
                        The requirement to send a copy of covered information by U.S. first class mail or another reasonably prompt means within three business days of receiving the request (unless a shorter or longer period is specified in the Federal securities laws) is designed to ensure that covered recipients promptly receive their covered information in their preferred format but also balances the fact that printing and mailing paper documents are operational processes that may take time to complete.
                        <SU>182</SU>
                        <FTREF/>
                         The “unless otherwise specified in the Federal securities laws” exception acknowledges that in some cases the Federal securities laws provide different time frames or processes for responding to covered recipient requests for covered information and is designed to avoid disrupting these existing requirements and practices.
                        <SU>183</SU>
                        <FTREF/>
                         This proposed provision also is intended to prevent fees from discouraging covered recipients if they wish to review a paper copy of covered information that has been provided and, if delivered via a statement of availability, may no longer be available on the covered entity's website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             We note that in some circumstances the Commission has required information to be sent in three business days. 
                            <E T="03">See</E>
                             17 CFR 230.498(f) (stating that “the Fund (or a financial intermediary through which shares of the Fund may be purchased or sold) must send, at no cost to the requestor and by U.S. first class mail or other reasonably prompt means, a paper copy of the Fund's Statutory Prospectus, Statement of Additional Information, and most recent annual and semi-annual reports to shareholders to any person requesting such a copy within three business days after receiving a request for a paper copy”); 
                            <E T="03">see also</E>
                             17 CFR 270.30e-3(e) (stating “[a] paper copy of any of the materials specified in paragraph (b)(1) of this section must be transmitted to any person requesting such a copy, at no cost to the requestor and by U.S. first class mail or other reasonably prompt means, within three business days after a request for a paper copy is received”); 17 CFR 270.30e-1(b)(3) (requiring the delivery upon request of paper copies of disclosures required by Items 7 through 11 of Form N-CSR, which open-end funds must make available online, within three business days).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             For example, beneficial owners of shares of a corporate issuer are entitled to receive paper copies of proxy materials upon request, but the time periods specified in the rules governing the time a broker has to request a copy from the issuer after receiving the beneficial owner's request (
                            <E T="03">i.e.,</E>
                             three business days), the time the issuer then has to send a paper copy to the broker after receiving the broker's request (
                            <E T="03">i.e.,</E>
                             three business days), and the time the broker then has to send the paper copy to the beneficial owner after receiving the proxy materials from the issuer (
                            <E T="03">i.e.,</E>
                             three business days) allow for up to a total of nine business days for delivery of a paper copy to a beneficial owner following the beneficial owner's request to the broker. 
                            <E T="03">See</E>
                             17 CFR 240.14a-16(j)(1) (requiring issuers or other soliciting persons to send a paper copy of proxy materials to any record holder requesting such a copy within three business days after receiving such request); 17 CFR 240.14b-1(d)(4)(i) (requiring a broker or dealer to request a copy of proxy materials from the issuer or other soliciting person within three business days after receiving a request for a copy from a beneficial owner); 17 CFR 240.14b-1(d)(4)(ii) (requiring a broker or dealer to forward a copy of proxy materials to a beneficial owner within three business days after receiving the materials from the issuer or other soliciting person).
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule also requires a covered entity to permit a covered recipient to opt out of e-delivery at any time and receive delivery only in paper format, free of charge, with respect to any or all covered information after opting out and requires that the covered entity promptly comply with such an election.
                        <SU>184</SU>
                        <FTREF/>
                         This proposed provision is designed to allow covered recipients to opt out easily from any or all forms of e-delivery should they wish to do so—without a charge or fee impeding this choice—and have the covered entity implement that change in a reasonable period of time after the opt-out request so that covered recipients receive the information in their preferred format. The requirement for free paper delivery of covered information is appropriate in light of the proposed rule's opt-out framework for e-delivery, whereby covered recipients could be defaulted into e-delivery unless they elect otherwise, to help ensure that covered recipients who prefer or require paper delivery of covered information are not deterred from electing paper delivery by the imposition of a fee.
                        <SU>185</SU>
                        <FTREF/>
                         The requirement to promptly comply with a covered recipient's opt-out election is designed to ensure that covered entities do not take a protracted period to respond to opt-out requests so that covered recipients receive covered information in their preferred format in a timely manner while also avoiding the imposition of a prescriptive time period that might not be feasible for covered entities in all cases. As a practical matter, the proposed requirements for a covered entity to permit a covered recipient to opt out of e-delivery, and for a covered entity to comply with covered recipients' elections, would entail relevant operations and compliance systems, as well as related recordkeeping associated with covered recipients' elections.
                        <SU>186</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(f)(2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             Because Reg E-Delivery differs in approach from the E-SIGN Act in that it would permit use of e-delivery by covered entities without first obtaining affirmative consent from covered recipients, proposed Reg E-Delivery would include different requirements from the consumer disclosure requirements associated with the E-SIGN Act, including those that address the possibility of fees being charged for paper.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             
                            <E T="03">See supra</E>
                             footnotes 124, 178; 
                            <E T="03">see also infra</E>
                             footnote 195. As relevant, such systems also would entail relevant supervision to prevent violations. 
                            <E T="03">See, e.g.,</E>
                             1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3 (stating that, regardless of whether information is delivered in paper or electronic form, broker-dealers and investment advisers must reasonably supervise firm personnel with a view to preventing violations, and therefore should consider the need for systems and procedures to deter or detect misconduct by firm personnel in connection with the delivery of information, whether by electronic or paper means).
                        </P>
                    </FTNT>
                    <P>
                        The proposed requirements would allow covered recipients to choose which types of covered information are provided in paper format or electronically on a document-by-document basis.
                        <SU>187</SU>
                        <FTREF/>
                         It is our understanding that covered recipients may prefer to receive certain categories of covered information in paper format and only have other types of information available to them electronically.
                        <SU>188</SU>
                        <FTREF/>
                         We understand that many covered entities currently maintain the operational flexibility to meet covered recipients' preferences to receive certain covered information electronically while delivering other covered information in paper format. However, we understand that tracking covered recipients' preferences to receive some items of covered information in paper format and others electronically, and delivering covered information accordingly, might be costly for some covered entities, particularly smaller covered entities, or those who 
                        <PRTPAGE P="45911"/>
                        do not use certain customer or investor management vendors or software.
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(f)(2) (requiring a covered entity to permit a covered recipient to opt out of electronic delivery for “any or all” covered information).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             For example, the ICI report on Americans' Views on E-Delivery of Financial Documents indicates that more shareholders prefer to receive fund shareholder reports (20%) versus fund prospectus (17%) and trade confirmations (17%) in paper. Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17.
                        </P>
                    </FTNT>
                    <P>Accordingly, we solicit comment below on whether covered entities should be allowed to offer e-delivery on an all-or-nothing or a document-by-document basis. The proposed requirement that a covered entity permit a covered recipient to opt to receive paper delivery free of charge would mean that the covered entity could not directly or indirectly impose a charge on a covered recipient who opts to receive paper delivery, such as by imposing a separate charge for paper delivery or imposing a charge that is waived only for covered recipients who receive disclosures electronically.</P>
                    <P>
                        We understand that some firms, by account agreement or otherwise by contract, may limit or restrict a covered recipient's ability to revoke consent to e-delivery, receive paper delivery, or charge a fee for paper delivery. If those firms intend to rely on Reg E-Delivery for assurance that their delivery requirements are satisfied by using e-delivery, and currently do not provide paper versions of covered information to covered recipients, they may need to alter certain of their current delivery practices to align with Reg E-Delivery's requirement to permit a covered recipient to opt out of e-delivery at any time and receive delivery only in paper format, free of charge.
                        <SU>189</SU>
                        <FTREF/>
                         We understand that certain firms reserve the right to restrict or close the account of a person who requests paper. These firms would be required to disclose whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity, as discussed above.
                        <SU>190</SU>
                        <FTREF/>
                         If a covered recipient were to request paper copies of covered information that had previously been delivered electronically, the covered entity would be required to provide these copies, and then could exercise, as permissible by law, any disclosed right to restrict or terminate the covered recipient's relationship if the covered recipient requests paper. Similarly, if a covered recipient were to request to opt out of e-delivery, the covered entity could exercise, as permissible by law, any disclosed right to restrict or terminate the covered recipient's relationship. While this covered entity must comply with all requirements of Reg E-Delivery so long as a person is a covered recipient, Reg E-Delivery does not affect a covered entity's disclosed right to restrict or terminate a relationship.
                    </P>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             Above we discuss the application of the disclosure requirements in proposed Reg E-Delivery in the context of firms' pre-existing contracts that may permit firms to restrict or close accounts that request paper copies or opt out of e-delivery. 
                            <E T="03">See supra</E>
                             footnote 144 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             
                            <E T="03">See supra</E>
                             text accompanying footnotes 143-144.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirements for covered entities to provide paper copies of covered information on request and to permit covered recipients to opt out of e-delivery:</P>
                    <P>
                        74. Generally, should the Commission require covered entities to provide paper delivery of covered information? If so, should paper delivery be required to be provided at no cost to the covered recipient, as proposed? Should we instead allow covered entities to charge for providing covered information in paper format? If covered entities could charge covered recipients for paper delivery, would this act as a significant impediment to covered recipients' receiving covered information in their preferred format? To what extent do covered entities currently charge for the delivery of covered information? If covered entities charge for paper delivery, how is it done in practice and what are the typical charges? If the Commission permitted covered entities to charge for providing paper documents, should Reg E-Delivery incorporate limitations to address what a reasonable fee would be (
                        <E T="03">e.g.,</E>
                         no more than the paper, printing, and postage cost of providing the materials, or no fees that materially exceed underlying costs of delivery)?
                    </P>
                    <P>
                        75. Is it appropriate that the proposed rule requires covered entities to allow covered recipients to receive certain covered information in paper on a document-by-document basis, or would an alternative, where covered entities would offer only all-or-nothing paper delivery for those who elect paper be preferable? If so, why? Should there be an alternative that combines these approaches in some way, and if so, how? For example, instead of providing document-by-document optionality should the rule require covered entities to give covered recipients a choice between, at a minimum, receiving personalized disclosures, like account statements or tax documents that include PFI one way (
                        <E T="03">e.g.,</E>
                         paper), and more generalized disclosures like prospectuses another way (
                        <E T="03">e.g.,</E>
                         electronically)? Do covered recipients already enrolled in e-delivery programs utilize document-by-document requests for paper? Are there operational difficulties associated with partial opt-outs from e-delivery that we should consider if covered recipients only want certain document types in paper format? Should we permit all-or-nothing global opt-outs from e-delivery for certain types of covered entities or smaller entities?
                    </P>
                    <P>76. We understand that multiple clicks or perceived friction may lead to covered recipients abandoning attempts to follow through in selecting their actual delivery preferences. Accordingly, should we require that covered entities must provide a direct link, or similar, for covered recipients to opt out of e-delivery?</P>
                    <P>
                        77. Should we require covered entities to provide paper copies of covered information previously delivered electronically upon a covered recipient's request, as proposed? What are the operational burdens and costs involved in responding to individual requests for covered information? How would covered entities evidence that they have complied with this proposed rule if a customer orally requests to receive covered information through paper delivery? We understand that covered entities generally maintain records regarding covered recipients' electronic or paper delivery elections and requests for paper copies, both to operationalize and implement delivery through the method requested by the recipient and to document compliance with delivery requirements under the Federal securities laws, the entity's policies and procedures, and any applicable recordkeeping requirements under the Federal securities laws.
                        <SU>191</SU>
                        <FTREF/>
                         We anticipate that similar practices would continue following any adoption of proposed Reg E-Delivery. Should we include a direct, dedicated recordkeeping provision in proposed Reg E-Delivery that would require covered entities to maintain records regarding requests for paper copies and elections to opt out of e-delivery for any or all covered information? Or should such a provision be included in the books and records rules of the respective categories of covered entities (as applicable)?
                    </P>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             
                            <E T="03">See supra</E>
                             footnote 124.
                        </P>
                    </FTNT>
                    <P>
                        78. Should the proposed rule obligate covered entities to send a free copy of covered information delivered electronically in paper format during the period the covered entity is required to retain the covered information under the Federal securities laws, or during the preceding two years if there is no such requirement, as proposed? Does aligning this provision with existing recordkeeping retention requirements strike the appropriate balance between providing a reasonable period of time to accommodate covered recipient requests for covered information in paper format and avoiding the imposition of undue 
                        <PRTPAGE P="45912"/>
                        burdens on covered entities? If there is no specific record retention period under the Federal securities laws, should the rule require covered entities to send free paper copies of covered information that has been delivered through e-delivery during the preceding two years? Is the proposed two-year time period appropriate, or should it be more or less? Should the rule use a time period based on the amount of time a record must be kept in a “easily accessible place” 
                        <SU>192</SU>
                        <FTREF/>
                         (or similar requirements) under existing recordkeeping rules? Should we instead provide a single, fixed time period for a copy of all covered information to be delivered in paper format upon request? If so, how long should this fixed period be? Should we provide one period during which a covered entity would be required to provide a paper copy of covered information and another, shorter period during which the covered entity would be required to provide a copy 
                        <E T="03">free of charge</E>
                        ? Why or why not?
                    </P>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             
                            <E T="03">See, e.g.,</E>
                             17 CFR 270.31a-2(a).
                        </P>
                    </FTNT>
                    <P>
                        79. Would the proposed requirement to deliver requested information within three business days provide a reasonable period for covered entities to provide paper copies of covered information to covered recipients upon request? While other Commission rules require certain information that is available electronically to be sent within three business days of a request for a paper copy, is the context different in the case of requests for paper copies of previously delivered covered information under Reg E-Delivery, such that a longer time period might be appropriate? For example, is a longer period warranted since such requests can relate to a variety of different types of covered information dating back several years, including the covered recipient's personal or account information as opposed to generic disclosures about assets or investments held by the covered recipient? 
                        <SU>193</SU>
                        <FTREF/>
                         Would covered entities be able to send paper copies within three business days in light of the request intake, record retrieval, printing, and mailing processes that would be involved? Does three business days provide sufficient time given that some circumstances (
                        <E T="03">e.g.,</E>
                         weather events or natural disasters that cause office closures, or circumstances where a covered recipient requests a relatively large volume of covered information) might delay a covered entity's ability to respond? If we were to provide a longer time period to respond to requests for paper copies, what time period would be appropriate? Five business days? One week? Or, would a principles-based time period, such as “promptly,” appropriately provide flexibility, given potential delays in a covered entity's ability to respond to requests for covered information and that some types of covered information may not require immediate action by the covered recipient? As another alternative, should we provide a different time frame for certain types of covered entities, such as small entities, to respond to requests for paper copies of covered information?
                    </P>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See supra</E>
                             footnotes 179, 182 and accompanying text.
                        </P>
                    </FTNT>
                    <P> </P>
                    <P>80. If a covered recipient opts out of electronic delivery for any or all covered information, the rule requires that a covered entity must “promptly” comply with the covered recipient's opt-out election. Instead of “promptly,” should we impose a requirement that a covered recipient must comply with the election within a specific time frame? If so, how long should that time frame be? Three business days after receiving the covered recipient's request? Five business days? One week? Two weeks?</P>
                    <P>81. Should we exclude any types of covered entities from the requirements to permit covered recipients to opt out of e-delivery, and to deliver paper copies of covered information, free of charge upon request? We understand that there are certain firms that would be covered entities under the proposed rule that currently reserve the right to charge a reasonable fee, restrict the account, or close the account of covered recipients who request paper. To what extent do covered entities currently restrict, by account agreement or otherwise, a covered recipient's ability to revoke consent to e-delivery or otherwise restrict paper delivery of covered information? How should Reg E- Delivery apply to such covered entities? Should such covered entities be excluded from any of the requirements of the proposed rule, such as the requirements to deliver paper copies of covered information to covered recipients upon request, to allow covered recipients to opt out of e-delivery, or to include statements regarding obtaining paper copies or opting out of e-delivery in statements of availability or direct deliveries of covered information? Would specific disclosure of such practices by covered entities at account opening or otherwise be sufficient to protect covered recipients and ensure that they receive covered information? Would excluding these covered entities from these requirements be appropriate because covered recipients engaging the services of such covered entities reasonably would expect to receive covered information electronically?</P>
                    <P>82. Should we exclude any types of covered information from the requirement to deliver paper copies of covered information, free of charge upon request? For example, should covered entities be permitted to charge for the paper format delivery of covered information that does not contain PFI?</P>
                    <P>83. Should covered entities be permitted to charge covered recipients who request paper copies of previously e-delivered covered information, but not covered recipients who opt out of e-delivery going forward?</P>
                    <P>84. Should there be a limit on the number of free paper copies that a covered recipient receives, and if so, under what circumstances? Is there the potential for covered recipients to abuse their ability to request free paper copies or scenarios where such requests are particularly burdensome or costly for covered entities? Should Reg E-Delivery permit any other limits on the ability of covered recipients to request paper or opt out of e-delivery, such as limiting paper requests or the ability to opt out of e-delivery to certain types of covered information or restricting the ability to opt out to a certain point in time rather than permitting opt outs at any time?</P>
                    <HD SOURCE="HD3">8. Updates to Electronic Address and Choice of Type of Electronic Address</HD>
                    <P>
                        Under the proposed rule covered entities providing e-delivery must permit a covered recipient, free of charge, to update their electronic address upon request.
                        <SU>194</SU>
                        <FTREF/>
                         If the covered entity offers a choice as to the type of electronic address to be used for e-delivery (for example, email or mobile phone number), the covered entity must also permit the covered recipient to select a preference free of charge.
                        <SU>195</SU>
                        <FTREF/>
                         This provision is necessary to ensure that covered recipients are able to update and change their preferred electronic address if the need arises so that they may continue to receive covered information. It also would allow—in circumstances where the covered entity offers e-delivery using multiple types of electronic addresses—for covered recipients to choose the best means of delivery for them at any given time. For example, covered recipients 
                        <PRTPAGE P="45913"/>
                        could change their delivery preference from email to text message, if the covered entity offers e-delivery using both of these types of electronic address. Additionally, this provision would allow covered recipients to elect to use new forms of electronic communications not necessarily available when they selected their initial means of delivery. The proposed rule would require covered entities to permit covered recipients to update or change their electronic addresses at any time, free of charge, so that they are not deterred from making these choices and receiving covered information at their preferred electronic address, by fees or other charges.
                    </P>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery §§ 303.102(g).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             
                            <E T="03">Id.</E>
                             The proposed requirements that obligate covered entities to permit covered recipients to update and choose the type of electronic address (like the proposed requirements for a covered entity to comply with covered recipients' elections to receive paper) would, as a practical matter, entail a need for relevant operations and compliance systems, as well as related recordkeeping.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirements regarding updating and choosing the type of electronic address for e-delivery:</P>
                    <P>85. Should covered entities be required to permit covered recipients to update or change their electronic address for e-delivery, as proposed? Should updating electronic addresses be free of charge, as proposed? Are fees charged for changing electronic addresses currently?</P>
                    <P>86. Do covered entities offer delivery to multiple electronic address types or are there certain types of electronic addresses (for example email, text, or mobile applications) that are primarily used? Should the rule require covered entities to deliver to multiple electronic address types?</P>
                    <HD SOURCE="HD3">9. Identifying and Remediating E-Delivery Failures</HD>
                    <P>
                        Under the proposed rule, covered entities would be required to adopt and implement written policies and procedures reasonably designed to identify and remediate failed e-delivery.
                        <SU>196</SU>
                        <FTREF/>
                         If a covered entity identifies an e-delivery failure it would be required promptly to take reasonable remediation steps, including obtaining a new electronic address or delivering the covered information in paper format until the covered recipient provides a new electronic address.
                        <SU>197</SU>
                        <FTREF/>
                         This provision is designed to ensure that covered entities actually deliver the required covered information and that covered entities have a program to identify circumstances where covered recipients are not receiving required covered information and take appropriate steps to remediate the issue. For example, if a covered entity identifies an individual e-delivery failure, such as an automated response that the covered recipient's electronic address is invalid received in connection with the delivery of an item of covered information (a “bounce-back”), the covered entity's delivery obligation with respect to that covered information would not be met and the covered entity would need to take further steps to deliver it. Rather than immediately transitioning the covered recipient to paper delivery on a global basis, however, the covered entity could send the covered information in paper while attempting to re-establish a valid or functional electronic address for future deliveries. On the other hand, persistent e-delivery failures would need to be addressed by reverting the covered recipient globally to paper delivery unless the covered recipient can provide an alternative electronic address. Extended delays in resolving these issues and finding valid or functional electronic addresses do not exempt covered entities from their obligations under Federal securities laws to deliver covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(h).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        It is our understanding that many covered entities currently maintain operations and systems capable of detecting invalid or inoperable email addresses via bounce-backs or other means. Some covered entities are able to halt e-delivery to such addresses and send paper notifications of failed delivery or switch to physical mailings of covered information.
                        <SU>198</SU>
                        <FTREF/>
                         Additionally, some covered entities' current compliance programs generally require remediation efforts in their policies and procedures.
                        <SU>199</SU>
                        <FTREF/>
                         Depending on the covered entities' business models, technologies, and communication types involved, covered entities may have significant visibility into whether certain electronic addresses are valid, whether recipients have clicked on certain links, or whether or when recipients have accessed the covered entity's electronic platform.
                        <SU>200</SU>
                        <FTREF/>
                         As communications technology continues to evolve, covered entities will likely have even more visibility into whether and when there are delivery failures or covered recipients are engaging with their communications. Though such capabilities may exist now or in the future, the proposed remediation provisions are not intended to require covered entities to monitor account engagement, clickthrough rates, whether a message was opened, or reviewed; instead, the proposed requirements aim to address whether there was an actual failure to deliver. It is our understanding that the proposed rule's principles-based remediation provisions in the case of failed e-deliveries or bounce-backs are generally consistent with existing industry practices and would continue to help ensure that covered recipients receive the covered information to which they are entitled.
                    </P>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44 (stating firms typically have a process to monitor and remediate e-delivery failures, including email bounce-backs, such as to notify a customer by postal delivery of an e-delivery failure and to switch a customer to postal delivery after successive e-delivery failures).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             For example, investment advisers and investment companies are required to adopt policies and procedures reasonably designed to prevent violations of the Advisers Act and the rules thereunder for advisers and the Federal securities laws for investment companies. 
                            <E T="03">See</E>
                             Advisers Act rule 206(4)-7 (17 CFR 275.206(4)-7) and Investment Company Act rule 38a-1 (17 CFR 270.38a-1). Failure to deliver covered information could result in a violation of such laws and rules. We also note in the paper mailing context that Exchange Act rule 17Ad-17 requires that when mail is returned as undeliverable, transfer agents must use “reasonable care” to find the account holder's correct address. State escheatment laws may also require some covered entities to monitor accounts for inactivity.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             We understand that some entities or their service providers systematically collect points of contact and account activity. 
                            <E T="03">See, e.g.,</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17 (stating funds have mechanisms built into their websites or online investor accounts to periodically prompt shareholders to confirm or update their contact information and/or to provide back-up contact information).
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirements for identifying and remediating failed e-delivery:</P>
                    <P>87. Should we require that the covered entities adopt and implement written policies and procedures that are reasonably designed to identify and remediate e-delivery failures, as proposed? What types of policies and procedures currently exist under the various regulatory regimes for the respective types of covered entities contemplated by the proposed rule? Do covered entities generally recognize the concept of e-delivery failures and have the ability reasonably to determine whether or not a failure to deliver to a covered recipient has occurred? What systems are involved in identifying and mitigating e-delivery failures, and what are the costs associated with such efforts?</P>
                    <P>
                        88. Should the rule, as proposed, require the covered entity to promptly take “reasonable remediation steps” to obtain a new electronic address or deliver a paper version of covered information when it identifies an e-delivery failure? What steps do covered entities take to obtain a new electronic address for covered recipients currently? What do covered entities view as a reasonable period of time to attempt to obtain a new electronic address before reverting to paper delivery? If a covered entity identifies a 
                        <PRTPAGE P="45914"/>
                        failed e-delivery to an electronic address and its reasonable steps to obtain a new electronic address fail, should the covered recipient be deemed to have opted out of e-delivery?
                    </P>
                    <P>89. Delivery failures may be used as evidence to consider an account abandoned for state escheatment purposes. State escheatment laws typically require financial services firms to identify abandoned property and attempt to notify the owner that the property is at risk of transfer to the state. How does this proposed rule intersect with covered entities' current obligations under state escheatment laws? What practices do covered entities use today to comply with such requirements? Can these existing practices be leveraged to facilitate e-delivery of covered information and/or identify and remediate e-delivery failures? Would the proposed rule's requirement for covered entities to adopt and implement written policies and procedures reasonably designed to identify and remediate failed electronic delivery, any other of the proposed requirements, or the use of e-delivery under Reg E-Delivery reduce the frequency of accounts being deemed to be abandoned under state escheatment laws? Should the Commission consider any requirements related to electronic contact or otherwise to help covered entities evidence that covered persons' accounts are not abandoned property?</P>
                    <P>90. In addition to or as an alternative to the proposed requirements for identifying and remediating e-delivery failures, should covered entities be required to verify that covered information was successfully transmitted to a valid or current electronic address (and, in the case of covered information delivered through a statement of availability, that covered information is available on the website that the covered entity provided) in the required time period? Do covered entities already confirm the validity of electronic addresses by sending activation links or other similar means during onboarding processes or otherwise?</P>
                    <P>91. As an alternative, should we require covered entities to include a notice of the failed e-delivery to the covered recipient in paper format as part of the mitigation process?</P>
                    <HD SOURCE="HD2">C. Requirements for Website Availability of Covered Information</HD>
                    <P>
                        As discussed in section II.B.3, one of the ways in which covered entities would be permitted to electronically deliver covered information to covered recipients under proposed Reg E-Delivery would be to deliver a statement that covered information is available on a website. We are proposing certain requirements for the website where covered information is made available, relating to: (1) timing; (2) availability period; (3) format and retainability; (4) accessing covered information that contains PFI; and (5) continuous availability and periods of temporary unavailability.
                        <SU>201</SU>
                        <FTREF/>
                         The proposed rule also specifies that the website may not be the address of any Commission electronic filing system.
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             Proposed Reg E-Delivery §§ 303.102(c)(1)(iii) through (iv) and 303.103(a) through (e).
                        </P>
                    </FTNT>
                    <P>
                        We are proposing to require the covered information to be available on the applicable website no later than the date by which the covered information must be delivered under the Federal securities laws or rules, and no later than the date by which the statement of availability of covered information is delivered.
                        <SU>202</SU>
                        <FTREF/>
                         E-delivery does not change or negate the fundamental obligations under the law to deliver required information. Therefore, availability on a website after the required date of delivery or the date of delivery of the statement of availability would not satisfy a covered entity's delivery obligations.
                        <SU>203</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             Proposed Reg E-Delivery § 303.103(a).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>203</SU>
                             
                            <E T="03">See</E>
                             17 CFR 230.498A(h)(1) and 17 CFR 230.498(e)(1) ([prospectus] must be accessible on the website “on or before the time that the [prospectus] is sent or given”).
                        </P>
                    </FTNT>
                    <P>
                        Similarly, we are proposing to require that the covered information must remain available for covered recipients to access on the website for a certain period of time, so that covered recipients have time both to review the information on the website and to download it or otherwise save it for their future use if desired. For covered information that already has a website availability period provided for under the Federal securities laws, the availability period would be provided by those time periods.
                        <SU>204</SU>
                        <FTREF/>
                         If no website availability period is provided in law or regulation, we are proposing to require that covered information that contains PFI would need to be available on the website for at least three years after posting, and covered information that does not include PFI would need to be available for at least one year. Where a website availability period for a specific type of information is provided by existing laws, the particular uses and needs for that information have been considered and that period specified under existing laws (whether it is longer, shorter or different from the proposed period under Reg E-Delivery) would be more appropriate. For example, a fund annual report must be available 60 days after the end of the fiscal half-year or fiscal year of the company until 60 days after the end of the next fiscal half-year or fiscal year of the company to match the schedules for the distribution of the shareholder reports.
                        <SU>205</SU>
                        <FTREF/>
                         Similarly, the time period for proxy materials to remain online under Exchange Act rule 14a-16 is tied to the timing of the related meeting of security holders, which is tailored for the informational purposes of these materials.
                        <SU>206</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>204</SU>
                             Proposed Reg E-Delivery § 303.103(b).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>205</SU>
                             
                            <E T="03">See</E>
                             17 CFR 270.30e-1(b)(2); 
                            <E T="03">see also, e.g.,</E>
                             17 CFR 230.498(e); 17 CFR 230.498A(h 17 CFR 240.14a-16(b)(1) (examples of availability periods provided by existing regulations).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>206</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(b)(1).
                        </P>
                    </FTNT>
                    <P>We are proposing three years as an appropriate online availability period for covered information that contains PFI. This information often relates to an individual's specific financial records. The three-year availability period is designed to balance the potential need for covered recipients to access this information from recent years (it would cover, for example, routine tax filings and most standard IRS audits) with the costs of maintaining this information online for longer time periods. For covered information that does not contain PFI, we are proposing one year as an appropriate default availability period, as such general disclosure does not contain the personalized data that individuals may require for an extended period of time for their financial records and accounting.</P>
                    <P>
                        We are also proposing to require that covered information be presented in a format that is convenient for both reading online and printing on paper.
                        <SU>207</SU>
                        <FTREF/>
                         Persons accessing the covered information would need to be able to retain the covered information permanently, free of charge, in an electronic format that meets these requirements. As information posted to a website would not be required to be available indefinitely, covered recipients should have the ability to 
                        <PRTPAGE P="45915"/>
                        retain this information permanently for their records if they choose. Information posted to a website that is not capable of being printed on paper in an easily readable format or otherwise savable could be difficult or impossible to retain. The Commission has imposed similar format and retainability requirements in other rules where website posting is required in connection with satisfying delivery obligations.
                        <SU>208</SU>
                        <FTREF/>
                         These requirements are designed to be technology-neutral.
                    </P>
                    <FTNT>
                        <P>
                            <SU>207</SU>
                             Proposed Reg E-Delivery § 303.103(c); 
                            <E T="03">see also supra</E>
                             footnote 151 (addressing the “convenient for reading and printing” requirements in other Commission rules for information available on a website); E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at text accompanying n.82 (“require[s] the electronically posted proxy materials to be presented on the internet website in a format, or formats, convenient for both printing and viewing online”); VASP Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at text accompanying n.460. In addition to complying with the proposed presentation and format requirements under Reg E-Delivery if adopted, covered entities are required to comply with all applicable accessibility-related requirements under the Americans with Disabilities Act or otherwise. 
                            <E T="03">See, e.g.,</E>
                             Americans with Disabilities Act of 1990, Public Law 101-336, 104 Stat. 328 (1990).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>208</SU>
                             
                            <E T="03">See, e.g.,</E>
                             17 CFR 230.498(e)(2)(i) and 17 CFR 230.498A(h)(2)(i) (requiring that information on the internet be presented in a format that is human-readable and capable of being printed on paper in human-readable format for open-end management investment companies and separate accounts offering annuity and life insurance contracts); 17 CFR 240.14a-16(c) (requiring materials to be presented in a format convenient for both reading online and printing in paper when delivering proxy materials electronically).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, where covered information that includes PFI appears on a website, the proposed rule would require that such information be delivered only through statement of availability, and be accessible only through the use of a process reasonably designed to safeguard the covered information.
                        <SU>209</SU>
                        <FTREF/>
                         This proposed requirement would reflect that covered information that contains PFI may contain highly sensitive information that could result in fraud, identify theft or other malfeasance if posted to a publicly available website (that is, a website that could be accessed other than through the use of a process reasonably designed to safeguard the covered information).
                        <SU>210</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>209</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery §§ 303.102(c)(1) and 303.103(d); 
                            <E T="03">see also supra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>210</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P> </P>
                    <P>
                        In circumstances where a covered entity's website and covered information become temporarily unavailable, we are proposing two additional protections. First, the covered entity must adopt and implement written policies and procedures reasonably designed to ensure that the covered information is made available and remains available in the manner required by the rule.
                        <SU>211</SU>
                        <FTREF/>
                         These could include, for example, the covered entity (or a service provider) monitoring the website where covered information is available to ensure that it becomes aware of any temporary unavailability in a timely manner. Second, once such an unavailability occurs, the covered entity would be required to take prompt action to ensure that the covered information becomes available in the manner required by Reg E-Delivery as soon as practicable following the earlier of the time at which the covered entity knows or reasonably should have known that the covered information is temporarily unavailable.
                        <SU>212</SU>
                        <FTREF/>
                         The Commission has previously included similar provisions for temporary noncompliance with online availability obligations in conjunction with other rules.
                        <SU>213</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>211</SU>
                             Proposed Reg E-Delivery § 303.103(e)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>212</SU>
                             Proposed Reg E-Delivery § 303.103(e)(2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>213</SU>
                             
                            <E T="03">See, e.g.,</E>
                             17 CFR 270.30e-1(b)(2)(vi); 17 CFR 270.30e-3(b)(5); 17 CFR 230.498(e)(4); 17 CFR 230.498A(h)(4); 
                            <E T="03">see also</E>
                             VASP Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at section II.A.5.f; 2009 Summary Prospectus Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at section III.B.3.e; Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at text accompanying n.449; Optional internet Availability of Investment Company Shareholder Reports, Investment Company Act Release No. 33115 (June 22, 2018) [83 FR 29158] (“Rule 30e-3 Adopting Release”) at text accompanying nn.113-135.
                        </P>
                    </FTNT>
                    <P>
                        We are proposing to provide that the website address relied upon for compliance with Reg E-Delivery may not be the address of a Commission electronic filing system.
                        <SU>214</SU>
                        <FTREF/>
                         This proposed approach is consistent with certain other Commission rules addressing the online availability of information.
                        <SU>215</SU>
                        <FTREF/>
                         A primary example of a Commission electronic filing system is the Commission's Electronic Data Gathering, Analysis, and Retrieval System (“EDGAR”), which is used by registrants and other entities to submit many filings that are subject to review by staff.
                        <SU>216</SU>
                        <FTREF/>
                         Disclosure through posting on a website other than a Commission electronic filing system allows for the overlay of interactive graphics or other tools that covered entities may choose to use to assist covered recipients in viewing and understanding the information presented in various disclosures.
                        <SU>217</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>214</SU>
                             Proposed Reg E-Delivery § 303.103.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>215</SU>
                             
                            <E T="03">See, e.g.,</E>
                             E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at text accompanying n.81. Other Commission rules similarly provide that EDGAR cannot be used to satisfy certain website posting requirements. 
                            <E T="03">See, e.g.,</E>
                             17 CFR 240.14a-16(b)(3); 17 CFR 270.30e-1(b)(2)(iii); 17 CFR 17 CFR 230.498(b)(1)(v)(A).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>216</SU>
                             
                            <E T="03">See</E>
                             17 CFR 232.100.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>217</SU>
                             
                            <E T="03">See</E>
                             Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at section II.A.4.
                        </P>
                    </FTNT>
                    <P>We request comment on the following:</P>
                    <P>92. Are the proposed requirements for website availability of covered information appropriate?</P>
                    <P>93. Should the required availability period for covered information containing PFI be different than for covered information not containing PFI? Is one year an appropriate availability period for covered information that does not contain PFI? Is three years an appropriate availability period for covered information that contains PFI? Should the availability period be longer or shorter? Should the availability period for covered information that contains PFI match a specific period during which covered information may be needed, such as time frames for IRS audits? Would an availability period of 1, 2, 4, or 5 years be more appropriate than 3 years? If so, why? Is it appropriate to require availability of covered information for a period consistent with applicable website availability periods under the Federal securities laws, or the proposed periods of one or three years if no such website availability periods apply? Are there circumstances where covered information should be available on a website after the customer relationship (or similar relationship) with the covered entity has ended? If so, describe the circumstances where this would be appropriate and how long such an availability period should last.</P>
                    <P>94. For covered information on a website that is required to be available for a certain period of time, should we require any specific disclosure on the website regarding how long the covered information will be available there and when it may disappear or be superseded?</P>
                    <P>95. Should we be less prescriptive with regard to any of the formatting, readability, printability, and retainability requirements for covered information posted to a website? If so, why? Would any of these proposed requirements limit the ability of a covered entity to use electronic tools or overlays when providing electronically presented information to provide better quality disclosure, or otherwise impede disclosure innovation? Are there additional requirements or greater specificity that would be beneficial to include in the proposed rule's requirements for website availability?</P>
                    <P>
                        96. Do the proposed formatting, readability, printability, and retainability requirements sufficiently address challenges covered recipients may encounter using different devices to review material (
                        <E T="03">e.g.,</E>
                         reading disclosures on smartphones)?
                    </P>
                    <P>
                        97. Should we, as proposed, impose restrictions on covered entities' use of a safeguarding process such as a password or biometrics to access a website that contains covered information that does 
                        <E T="03">not</E>
                         contain PFI? Could this create barriers to the ability of covered recipients to view covered information that is legally required to be delivered to them? Are there certain circumstances in which passwords or similar processes should be allowed to access covered information that does not contain PFI? If so, what are they?
                        <PRTPAGE P="45916"/>
                    </P>
                    <P>98. Is it appropriate to allow covered entities to be considered to have met the proposed website availability requirements during periods of temporary unavailability of a website, as proposed? Should we be more specific regarding how long a period of time for which the site may be unavailable or the events that may lead to such unavailability? Should we specify what written policies and procedures a covered entity must adopt and implement that are reasonably designed to ensure the covered information is made and remains available? Should we require written policies and procedures requiring monitoring for website unavailability or other website issues? If so, what should those policies and procedures contain? Is it appropriate to require a covered entity to take “prompt action” during a period of temporary unavailability? Should we instead require the covered entity to take action within a specific period of time? If so, how much time? Would 24 hours, 48 hours, 72 hours, 1 week, or some other period of time be appropriate? Should we be more specific regarding how a covered entity can reasonably know that the covered information is temporarily unavailable? If so, how?</P>
                    <P>99. Do commenters agree that the website for accessing covered information under Reg E-Delivery should not be permitted to be a Commission electronic filing system? Are there certain Commission electronic filings systems that should be permitted to be used for accessing covered information? Alternatively, should covered entities be allowed to use covered information posted to the Commission's filing system to satisfy their obligations to deliver any covered information, or certain types of covered information? If so, which types of covered information and why?</P>
                    <P>100. Are there any additional requirements for website availability of covered information that we should adopt? For example, with respect to covered information that does not include PFI, would covered recipients value a requirement that covered information must be maintained on a website that does not employ tracking technologies such as cookies to access such website, and if so why?</P>
                    <P>101. Well-designed websites or internet-connected apps may benefit covered recipients by effectively communicating covered information, including by adopting features not possible with paper, such as interactive videos, calculators, and layered design. What common features have covered entities adopted in their websites or apps that are effective in communicating covered information to covered recipients and attracting covered recipients to engage in activity with their accounts online? What are the benefits and drawbacks of these features? Should any such features be required beyond this rulemaking? Would such features be consistent with the proposed requirement to provide covered information in paper on demand?</P>
                    <HD SOURCE="HD2">D. Special Provision for Covered Recipients Receiving Paper: Required Notices and Transition Process for Default Electronic Delivery</HD>
                    <HD SOURCE="HD3">1. Scope of Application and Transition Process for Default E-Delivery</HD>
                    <P>
                        The transition requirements of the proposed rule apply to a covered entity's e-delivery to covered recipients receiving paper, that is, covered recipients who, as of the effective date of Reg E-Delivery, receive any covered information in paper from or on behalf of the entity, and for whom such covered entity has an electronic address.
                        <SU>218</SU>
                        <FTREF/>
                         Section 303.104 of proposed Reg E-Delivery provides covered entities with an opportunity to transition this specific group of covered recipients to default e-delivery through the provision of certain paper notices (described below) to these recipients. Covered entities would not be permitted to use the transition process under this provision to impose default e-delivery on covered recipients who elect to continue to receive delivery of covered information in paper after the effective date of Reg E-Delivery. Therefore, once a covered entity has used this transition process with respect to covered recipients receiving paper, it cannot again use the transition process with respect to those covered recipients who elect to receive paper in response to the notices they received during the process.
                    </P>
                    <FTNT>
                        <P>
                            <SU>218</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(a). “Covered recipient receiving paper” includes a covered recipient receiving some or all covered information in paper format as of the effective date of Reg E-Delivery whether by default (as a result of not opting in to e-delivery pursuant to the E-Delivery Guidance) or preference (such as selecting paper delivery in the onboarding process or withdrawing a prior consent to e-delivery) and for whom such covered entity has an electronic address.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, this approach would allow covered entities to use e-delivery to deliver covered information to covered recipients receiving paper without first obtaining their affirmative consent, but also would honor the preferences of recipients who favor paper delivery.
                        <SU>219</SU>
                        <FTREF/>
                         For covered recipients that become entitled to covered information after the effective date of the rule (
                        <E T="03">e.g.,</E>
                         new investors in a registered investment company or new clients of an investment adviser), a covered entity relying on Reg E-Delivery to e-deliver covered information to such recipients would be subject to the general requirements of the proposed rule (
                        <E T="03">i.e.,</E>
                         in proposed Reg E-Delivery § 303.102-103),
                        <SU>220</SU>
                        <FTREF/>
                         but would not be subject to the transition provisions (in proposed Reg E-Delivery § 303.104) and so would not need to send the initial and follow-up notices to such recipients. After covered recipients receiving paper are shifted to e-delivery pursuant to the transition provisions, a covered entity would generally be required to e-deliver covered information to such recipients pursuant to the other provisions of Reg E-Delivery (
                        <E T="03">i.e.,</E>
                         in proposed Reg E-Delivery § 303.102-103),
                        <SU>221</SU>
                        <FTREF/>
                         but would not be required to provide the disclosure of e-delivery (in proposed Reg E-Delivery § 303.102(b)).
                        <SU>222</SU>
                        <FTREF/>
                         This disclosure would be unnecessary for covered recipients who were provided with the paper notices during the transition process because they serve largely the same function as the disclosure of e-delivery by notifying covered recipients that covered information will be delivered electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>219</SU>
                             
                            <E T="03">See supra</E>
                             sections I, II.A.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>220</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102-103; 
                            <E T="03">supra</E>
                             sections II.B-II.C.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>221</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>222</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b); 
                            <E T="03">supra</E>
                             sections II.B.2.
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule applies the transition process's notice requirements only to covered recipients receiving paper because providing notice to those that already receive e-delivery during the transition process would be unnecessary, as those covered recipients have already expressed a preference for e-delivery and would not be experiencing a change in delivery method of covered information.
                        <SU>223</SU>
                        <FTREF/>
                         This would make the transition notices potentially duplicative of past efforts and confusing for covered recipients already receiving e-delivery. Similarly, recipients for whom covered entities have delivery obligations that commence after the effective date would not be experiencing a change in how they receive covered information from the covered entity. Accordingly, covered 
                        <PRTPAGE P="45917"/>
                        entities would provide these covered recipients with a disclosure of e-delivery at the initiation of their relationship with the covered entity and would not be required to send transition notices to such covered recipients.
                        <SU>224</SU>
                        <FTREF/>
                         Additional information related to e-delivery under the proposed rule for these covered recipients—like covered recipients' ability to request paper delivery free of charge under the proposal—would be provided to them in connection with the delivery of covered information under the proposed rule as discussed above.
                    </P>
                    <FTNT>
                        <P>
                            <SU>223</SU>
                             We recognize, however, that a covered recipient that currently receives electronic delivery of covered information containing PFI from a covered entity that does not deliver such covered information in a manner that conforms with the requirements of the proposed rule would experience a change in e-delivery method. 
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c) and 
                            <E T="03">supra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>224</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b); 
                            <E T="03">supra</E>
                             section II.B.2.
                        </P>
                    </FTNT>
                    <P>
                        Covered recipients receiving paper for whom the covered entity has an electronic address, however, could begin receiving information electronically under the proposed rule—under the time frame that the proposed rule provides—unless they elect to continue to receive covered information in paper. The notice requirements are designed to alert such covered recipients receiving paper to the upcoming change in delivery method and provide them an opportunity to elect to continue to receive paper delivery or to update an electronic address they have on file with the covered entity.
                        <SU>225</SU>
                        <FTREF/>
                         Limiting the scope of the transition requirements to covered recipients receiving paper for whom the covered entity has an electronic address, as opposed to requiring covered entities to send a transition notice to all covered recipients, reflects a balance between the costs of sending these notices with the benefits of putting covered recipients who will be experiencing a change in delivery methods on notice of that upcoming change. Providing paper notices to covered recipients who already receive e-delivery would be a significant burden and expense with limited if any benefit, given that those recipients have already made the choice to receive regulatory documents by e-delivery and would not be affected by the implementation of default e-delivery.
                        <SU>226</SU>
                        <FTREF/>
                         This proposed approach allows firms to continue to provide covered information electronically to those who have already opted in to e-delivery, which both reduces costs and respects the choices that the covered recipients made prior to the proposed rule's effective date. Similarly, a requirement to send notices to covered recipients for whom the covered entity does not have an electronic address could be confusing to these covered recipients, as they would not be experiencing a transition to e-delivery if they have not provided an electronic address.
                        <SU>227</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>225</SU>
                             
                            <E T="03">See supra</E>
                             section II.A (discussing the importance of notice in a transition period). Industry participants support a transition period that includes notices of the switch to e-delivery. 
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44 (stating that after a transition period that includes notice to customers about the switch from postal to e-delivery, firms should be permitted to designate e-delivery as the default method of delivery for required customer communications, and to deliver customer communications electronically to an e-delivery address that the firm has on file for the customer) and Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17 (recommending a mandatory transition period of no more than one year to notify investors who currently receive paper delivery of the change to e-delivery).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>226</SU>
                             For example, the ICI notes that 84% of fund investors receive at least some of their financial documents electronically. Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17. A 2022 survey commissioned by SIFMA found that 79% of broker-dealer customers have already opted to receive customer communications electronically through email, a financial institution's website, or a mobile application. SIFMA, Most Investors Want Electronic, Not Paper, Delivery of Investor Documents (Summer 2022), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sifma.org/wp-content/uploads/2022/07/SIFMA-Survey-Results-for-SEC-July-2022.pdf</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>227</SU>
                             Reg E-Delivery would not prevent a covered entity from contacting a covered recipient and requesting that covered recipient's electronic address to receive covered information. If, through this outreach, the covered entity obtains an electronic address for a covered recipient that receives any covered information in paper format as of the effective date of Reg E-Delivery, the covered entity could rely on Reg E-Delivery to deliver all covered information to this covered recipient electronically after providing the disclosure of e-delivery required by proposed Reg E-Delivery § 303.102(b). 
                            <E T="03">See also infra</E>
                             footnote 440.
                        </P>
                    </FTNT>
                    <P>
                        The proposed transition process would include certain timing requirements. The proposed rule provides that a covered entity may use e-delivery as the default delivery method for any covered recipients receiving paper beginning 180 days after the covered entity provides a prescribed initial notice to the covered recipient receiving paper (which we describe in more detail below), if the covered recipient receiving paper does not opt out of e-delivery after receiving such notice. Some covered recipients receive e-delivery of only a subset of covered information. If a covered entity intends to default the covered recipient into e-delivery for the remainder of the covered information it provides, it must comply with the transition period's requirements with respect to that remainder. The proposed 180-day period is designed to provide sufficient time for covered recipients receiving paper to receive and respond to notices of upcoming default e-delivery and opt out, either in whole or in part.
                        <SU>228</SU>
                        <FTREF/>
                         In addition, the proposed rule allows covered entities to decide when to provide the initial notice and, if they choose, to take more than 180 days to begin e-delivery of covered information to covered recipients receiving paper.
                        <SU>229</SU>
                        <FTREF/>
                         This flexibility is designed to help covered entities manage the transition to default e-delivery, providing them with time to operationalize any necessary changes to their processes and systems.
                    </P>
                    <FTNT>
                        <P>
                            <SU>228</SU>
                             Industry participants similarly have suggested a six to twelve month transition period. 
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44. Though it relates to Form 144 filings with the Commission, six months has been considered a reasonable period to transition from paper to electronic formats in another context. 
                            <E T="03">See</E>
                             Updating EDGAR Filing Requirements and Form 144 Filings, Securities Act Release No. 11070 (June 2, 2022) [87 FR 35393 (June 10, 2022)].
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>229</SU>
                             We would interpret the “provision” of the notice, and the beginning of the 180-day period under the proposed rule, to be the day the covered entity mailed the notices.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirement for a transition process and its scope and timing requirements:</P>
                    <P>
                        102. Should certain types of covered recipients, covered entities, or covered information not be subject to the transition process and its notice provisions? For example, should the proposed rule exclude from the group of covered recipients who could be transitioned to e-delivery under the rule individuals over a certain age, either as of a certain date or at the time the covered entity starts the transition process? 
                        <SU>230</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>230</SU>
                             
                            <E T="03">See</E>
                             Federated Hermes 2026 Comment Letter, 
                            <E T="03">supra</E>
                             footnote 43 (suggesting that “[c]oncerns about the impact of e-delivery on senior citizens could potentially be addressed by “grandfathering” investors over the age of seventy-five without an affirmative opt out.”).
                        </P>
                    </FTNT>
                    <P>103. Should the transition process only apply to covered recipients receiving paper, as proposed, which is limited under the proposed definition to covered recipients for whom the covered entity has an electronic address? Should we also require that covered entities must have an electronic address “provided by” the covered recipient in order to be able to use the transition process with respect to that covered recipient, or would it be unnecessarily burdensome for covered entities to establish that a covered recipient has provided an electronic address in the case of covered recipients receiving paper (as they are defined in the proposed rule) as opposed to other covered recipients? Should the paper notices be sent to all covered recipients regardless of whether they currently receive paper or e-delivery?</P>
                    <P>
                        104. As proposed, the transition process (including the initial paper notice regarding the upcoming change to default e-delivery) would be limited to covered recipients who receive any information in paper format as of the effective date of Reg E-Delivery and 
                        <PRTPAGE P="45918"/>
                        cannot be applied to covered recipients who request paper delivery after the effective date. Do commenters agree with this approach? Without this requirement, would there be a risk that covered entities could use the transition process with respect to covered recipients who elect to receive paper delivery, including by sending another initial notice to covered recipients who already received one and opted out of e-delivery? Is there another way to tailor the transition process to the appropriate group of covered recipients and prohibit the repeat provision of the initial notice to a covered recipient (aside from limiting the transition process to covered recipients receiving paper as of the effective date, as proposed)?
                    </P>
                    <P>105. As discussed below, the initial notice as proposed would require covered entities to include the electronic address that would be used to deliver covered information to the covered recipient receiving paper, which, by definition, means that the covered entity has an electronic address for such covered recipient. Instead of the proposed approach, should we require that the initial notice also be provided to covered recipients currently receiving paper for whom the covered entity does not have an electronic address and include an explanation that the covered recipient will not be transitioned to e-delivery and will continue to receive covered information in paper free of charge unless the covered recipient provides their electronic address? Would this alternative enable covered entities to transition more covered recipients into e-delivery, or would this alternative be unnecessary as is this an exercise that covered entities could undertake on their own initiative should they wish to obtain the electronic addresses necessary to transition such covered recipients to e-delivery?</P>
                    <P>106. Should a covered entity have to comply with the timing and notice requirements of the proposed transition provision for covered recipients who receive some, but not all, documents electronically? For example, if covered recipients receive some documents electronically, should they still have the benefit of the full transition process and notices if they are already familiar with the covered entity's e-delivery processes?</P>
                    <P>
                        107. Should covered recipients who have already affirmatively elected to receive paper versions of covered information as of the effective date receive the initial notice (as proposed, this group of covered recipients would be included in the definition of “covered recipients receiving paper”)? Is it appropriate to require notices of the upcoming change to e-delivery to such covered recipients given that they have already expressed a choice to receive paper? Could doing so cause confusion? For covered recipients that have provided electronic addresses and have already elected prior to the effective date of Reg E-Delivery to receive certain documents in paper on a document-by-document basis, does receiving a transition notice to transition all of their covered information to electronic delivery raise any particular issues, or is it sufficient that this notice would describe each type of covered information that would be transitioned to e-delivery and provide an opportunity to select paper delivery for any or all of this covered information? 
                        <SU>231</SU>
                        <FTREF/>
                         Are covered entities able to identify and distinguish those covered recipients receiving paper based on an affirmative choice, such as withdrawing their previous consent to e-delivery, from those receiving paper by default? Would doing so be burdensome?
                    </P>
                    <FTNT>
                        <P>
                            <SU>231</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(i)(A) and 
                            <E T="03">infra</E>
                             section II.D.2.
                        </P>
                    </FTNT>
                    <P>108. Instead of the proposed approach, should all covered recipients (even those who have already opted in to e-delivery under the E-Delivery Guidance) receive notices? More specifically, should any notices be required to be sent to those covered recipients that have already affirmatively elected to receive e-delivery as of the effective date? If so, should those recipients receive their notices electronically, or should all notices under this approach be in paper format? Would delivering notices to covered recipients that had opted in to e-delivery prior to the effective date of the proposed rule potentially create confusion given they have already made a choice?</P>
                    <P>109. Is it appropriate, as proposed, to provide a transition process that gives covered entities flexibility to choose when they provide the initial notice for default to e-delivery and begin the 180-day notice process?</P>
                    <P>110. Is 180 days, as proposed, an appropriate amount of time for the transition process? Should we instead require a longer or shorter period? Should the transition process be 90 days, for example, or a year?</P>
                    <P>111. Should the proposed rule incorporate any special considerations for security-based swap dealers, major security-based swap data participants, and security-based swap data repositories that currently rely on standardized disclosures used by the majority of market participants?</P>
                    <HD SOURCE="HD3">2. Required Notices During the Transition Process</HD>
                    <P>
                        The transition process would require covered entities to provide two separate notices in paper to covered recipients receiving paper, namely the initial notice and a follow-up notice. First, the proposed rule would require covered entities to provide a clear and conspicuous initial notice in paper format meeting certain content requirements to each covered recipient receiving paper.
                        <SU>232</SU>
                        <FTREF/>
                         Covered entities would be required to provide the initial notice in paper format to the covered recipient's last known physical address of record, as this method corresponds to how covered recipients receiving paper receive covered information and would help ensure that these recipients receive notice of the upcoming transition to default e-delivery. The initial notice requirement is designed to provide a clear and conspicuous announcement of the transition to e-delivery as a default and the covered entity's approach to the transition so that covered recipients can make informed decisions regarding their preferred delivery method for covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>232</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c).
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule would impose certain content requirements so that the notices cover key information regarding the transition to e-delivery under the proposed rule.
                        <SU>233</SU>
                        <FTREF/>
                         The initial notice would include a prominent statement that alerts the covered recipient receiving paper about the upcoming transition to e-delivery of covered information.
                        <SU>234</SU>
                        <FTREF/>
                         Such a prominent statement would need to clearly stand out within the notice (
                        <E T="03">e.g.,</E>
                         by use of bold font, size, formatting, etc.). The purpose of this proposed requirement is to help ensure that covered recipients receiving paper recognize the importance of the transition and to encourage them to read further to understand the transition to e-delivery in greater detail. This prominent statement would also be required to include a brief description of each type of covered information that the covered entity would deliver electronically.
                        <FTREF/>
                        <SU>235</SU>
                          
                        <PRTPAGE P="45919"/>
                        The brief description would also identify which covered information may require action by the covered recipient within a fixed time frame to exercise certain rights, and which covered information may be delivered by someone other than the covered entity providing the notice or a person delivering on behalf of the covered entity.
                        <SU>236</SU>
                        <FTREF/>
                         For example, these would include proxy statements or tender offer statements giving shareholders a limited time period to vote their shares at a shareholder meeting or tender their shares into an offer, respectively. These also would include proxy statements delivered by dissidents in contested director elections and tender offer statements delivered by third-party bidders. As another example, this would also include trade confirmations, as broker-dealers often require as a term of their customer account agreements that investors review and promptly report any discrepancies. The information required in the brief description would help covered recipients make an informed decision about how they wish to receive required information under the Federal securities laws, including whether to request paper delivery for some or all of the covered information that otherwise would be delivered electronically under the proposed rule. If applicable, the prominent statement would also need to include a statement disclosing whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity.
                        <SU>237</SU>
                        <FTREF/>
                         This requirement is designed to inform covered recipients about any potential consequences that may result from requesting a paper copy or opting out of e-delivery under these circumstances.
                    </P>
                    <FTNT>
                        <P>
                            <SU>233</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>234</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(i).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>235</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(i)(A). For covered recipients receiving paper that receive some covered information in paper and some electronically, the covered entity would need only to list the covered information that the covered recipient is currently receiving in paper that would be shifted to e-delivery and not a full enumeration of all covered information (including covered information that the recipient is currently receiving electronically).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>236</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>237</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.3 (discussing the rule's applicability in circumstances where a covered recipient's request for paper or to opt out of e-delivery could result in potential restrictions on or termination of the covered recipient's relationship with the covered entity).
                        </P>
                    </FTNT>
                    <P>
                        The initial notice would be required to provide a description of the methods of e-delivery that may be used (
                        <E T="03">e.g.,</E>
                         an email providing a link to the covered information that is being delivered), but would not require covered entities to specify how each individual item of covered information will be delivered.
                        <SU>238</SU>
                        <FTREF/>
                         Describing the proposed rule's two methods of delivery would inform covered recipients of how covered information will generally be delivered following the transition to e-delivery and where covered recipients can access that covered information. This information would also allow covered recipients to make a choice regarding whether e-delivery or opting-out to paper delivery under such circumstances would best fit their needs. Moreover, this approach would allow covered entities to proceed with the transition process notices without the burden of having to identify the delivery method for each item of covered information in advance and would provide flexibility for covered entities to change delivery methods to the extent permitted by the proposed rule.
                        <SU>239</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>238</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(i)(B).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>239</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1) (requiring that covered information including PFI be delivered through delivery of a statement of availability and that the website where the covered information is available must require the use of a process reasonably designed to safeguard the PFI).
                        </P>
                    </FTNT>
                    <P>
                        The initial notice would also be required to include the electronic address that the covered entity would use to deliver covered information electronically to the covered recipient.
                        <SU>240</SU>
                        <FTREF/>
                         The proposed requirement to personalize the notices to identify the electronic address the covered entity would use is designed to help ensure that covered recipients are on notice of where the covered information would be provided electronically if they do not opt out of e-delivery.
                        <SU>241</SU>
                        <FTREF/>
                         This would allow covered recipients to review the electronic address on file with the covered entity and potentially amend it if it is wrong or outdated. If the covered recipient has never provided an electronic address and receives covered information in paper format, the covered entity would not include the covered recipient in the transition or send an initial notice.
                        <SU>242</SU>
                        <FTREF/>
                         We anticipate that for some long-dated accounts—for example, those established prior to the widespread use of electronic addresses—an electronic address may never have been collected or provided. These covered recipients would be outside of the scope of the transition—as under the rule they could not receive e-delivery if an electronic address is not available—and would continue to receive covered information in paper free of charge.
                        <SU>243</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>240</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(ii).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>241</SU>
                             Electronic addresses available to receive covered information and the preferences of covered recipients can vary. We understand that common types of electronic addresses include email addresses, phone numbers, online accounts, web-based portals, mobile applications, or other means developed to deliver communications electronically. 
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44. The Department of Labor also required plan administrators to identify the specific electronic address that will be used for e-delivery. 
                            <E T="03">See</E>
                             Default E-Delivery DOL Adopting Release, 
                            <E T="03">supra</E>
                             footnote 46, at 31901 (stating that “the additional burden, if any, of including this personalized information will be more than offset by the benefit to both the plan administrator and covered individuals of stating, up front, the electronic address that will be used”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>242</SU>
                             
                            <E T="03">See supra</E>
                             footnote 218 (the proposed definition of “covered recipient receiving paper” (who are the covered recipients included in the scope of proposed Reg E-Delivery § 303.104) specifies that the covered entity has such covered recipient's electronic address).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>243</SU>
                             For example, there are circumstances where certain securities or products were sold prior to the widespread adoption of email. Such circumstances would typically involve paper applications where only physical addresses and telephone numbers were collected. Covered entities that service “set it and forget it” products or assets purchased decades ago by covered recipients are more likely to have covered recipients that have not provided an electronic address.
                        </P>
                    </FTNT>
                    <P>
                        The proposed notice would also be required to include the date when the default to e-delivery would begin, which must be no earlier than 180 days after the date of the provision of the initial notice (unless, as discussed below, the covered recipient updates or confirms an electronic address after receiving the initial notice).
                        <SU>244</SU>
                        <FTREF/>
                         This notice would give covered recipients a sense of the transition's timing and allow them to take the necessary steps to prepare. In addition, requiring a minimum of 180 days, but permitting covered entities to take additional time before the transition to e-delivery, would provide flexibility to covered entities to manage the transition and implement any necessary changes within time frames that meet their business needs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>244</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(iii); 
                            <E T="03">see also infra</E>
                             footnote 255 and accompanying and following text. The transition period would begin on the date the initial notice is provided pursuant to proposed Reg E-Delivery § 303.104(b). 
                            <E T="03">See supra</E>
                             footnote 229.
                        </P>
                    </FTNT>
                    <P>
                        The proposed notice would also be required to include a prominent statement describing the ability of the covered recipient to opt out of e-delivery at any time and receive all or a subset of covered information in paper format, free of charge, following an opt-out election.
                        <SU>245</SU>
                        <FTREF/>
                         As discussed above, the proposed rule is designed to honor covered recipient preferences for paper delivery, and requiring the notice to include information about how to opt out of e-delivery would facilitate this goal.
                        <SU>246</SU>
                        <FTREF/>
                         Moreover, the requirement to permit opting out of e-delivery for a subset of covered information would allow covered recipients to select which 
                        <PRTPAGE P="45920"/>
                        types of information they would receive in paper format.
                        <SU>247</SU>
                        <FTREF/>
                         For example, customers of a broker-dealer may wish to receive trade confirmations in paper to keep in their physical records while receiving lengthier issuer prospectuses electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>245</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(iv)(A); 
                            <E T="03">see also supra</E>
                             section II.B.7 (discussing “free of charge” requirements).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>246</SU>
                             
                            <E T="03">See supra</E>
                             footnote 144 and accompanying and following text for discussion of circumstances, under the proposed rule, where the covered entity could potentially restrict or terminate a customer account or relationship after a covered recipient requested paper or opted out of e-delivery.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>247</SU>
                             
                            <E T="03">See supra</E>
                             footnote 188 and accompanying paragraph.
                        </P>
                    </FTNT>
                    <P>
                        The required prominent statement would also have to describe the ability of covered recipients to update or confirm an electronic address free of charge including, if applicable, an explanation of how to change the type of electronic address that will be used for delivery, such as email or mobile phone number.
                        <SU>248</SU>
                        <FTREF/>
                         Requiring the notice to include a description of the process for a covered recipient to update or confirm their electronic address would help ensure that the covered entity has a current electronic address on file for the covered recipient. In addition, a covered entity may choose to deliver covered information through several different types of electronic addresses (
                        <E T="03">e.g.,</E>
                         email, mobile application, etc.) and if it does so, we propose that covered entities must describe the ability to select or change the type of electronic media through which to receive e-delivery. Providing a process for covered recipients to change the type of electronic address that will be used for delivery would enhance their ability to receive and digest covered information in their preferred manner.
                    </P>
                    <FTNT>
                        <P>
                            <SU>248</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(iv)(B).
                        </P>
                    </FTNT>
                    <P>
                        The prominent statement would also describe the process for a covered recipient to opt out of e-delivery and/or update or confirm the covered recipient's electronic address, which at a minimum must include a toll-free telephone number and a website provided by the covered entity.
                        <SU>249</SU>
                        <FTREF/>
                         This description is necessary so covered recipients can understand the process for initiating these choices and can easily implement their preferences using the covered entities' systems. Furthermore, requiring the covered entity to provide a toll-free number and a website would help ensure that covered recipients are able to easily contact the covered entity to make these choices. It is also our understanding that most covered entities and their service providers already provide toll-free numbers and websites for various investor, customer, and client inquiries.
                        <SU>250</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>249</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(iv)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>250</SU>
                             
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44. We anticipate in many circumstances that the toll-free number could be an existing number that the covered entity already provides to covered recipients for customer service or similar inquiries.
                        </P>
                    </FTNT>
                    <P>
                        The prominent statement would also have to state whether the covered entity intends to begin e-delivery of covered information earlier than 180 days after the date of the provision of the initial notice if the covered recipient updates or confirms an electronic address following the delivery of initial notice.
                        <SU>251</SU>
                        <FTREF/>
                         This would facilitate the proposed approach, described in more detail below, of permitting a covered entity to begin using e-delivery for any covered recipient receiving paper who updates or confirms an electronic address at any time after receiving the initial notice.
                        <SU>252</SU>
                        <FTREF/>
                         Requiring covered entities to state whether they intend to promptly begin using e-delivery under these circumstances would also help covered recipients understand the implications of updating or confirming their electronic address on the timing of the transition to receiving covered information electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>251</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(iv)(D).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>252</SU>
                             
                            <E T="03">Id.; see also infra</E>
                             paragraph accompanying footnote 255.
                        </P>
                    </FTNT>
                    <P>
                        Lastly, the proposed rule requires that the initial notice be provided separately from other types of communications and contain only the information required by the rule, except that it also may include pictures, logos, or similar design elements so long as they are not misleading and do not make the notice unclear.
                        <SU>253</SU>
                        <FTREF/>
                         This separate delivery requirement is designed to help avoid the risk of the notice being overlooked and increase the likelihood that covered recipients see and review the notice. Additionally, the proposed requirement would help ensure that the initial notice includes clear and essential information related to e-delivery that is not obscured by other content.
                    </P>
                    <FTNT>
                        <P>
                            <SU>253</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(2).
                        </P>
                    </FTNT>
                    <P>
                        After the covered entity provides the initial notice, the proposed rule would require the covered entity to provide a clear and conspicuous follow-up notice in paper format to each covered recipient receiving paper, at their last known physical address of record.
                        <SU>254</SU>
                        <FTREF/>
                         The follow-up notice must be provided 30 days prior to the date for transitioning to default e-delivery identified in the initial notice and would need to comply with the content and other requirements of the initial notice. The proposed requirement for a second, follow-up notice is designed to increase the likelihood that covered recipients receiving paper would see and review the notice and (if they wish) make an election to opt out of e-delivery or update their current electronic address. A second notice would also remind covered recipients of the upcoming changes if they forgot or failed to make an election after the initial notice. The required timing of 30 days prior to the date the covered entity transitions to default e-delivery would provide covered recipients with enough time to opt out of e-delivery if they choose and would also limit how soon after the initial notice the follow up notice could be sent to help ensure that the follow up notice functions as a separate reminder to covered recipients regarding the upcoming transition to default e-delivery. Similar to the initial notice, the follow-up notice would need to be “clear and conspicuous” and generally include all content that is required in the initial notice to help ensure covered recipients receive the same important information and explanation of their delivery options in a manner that would assist them in navigating the upcoming transition to e-delivery so their preferences are met.
                    </P>
                    <FTNT>
                        <P>
                            <SU>254</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(d).
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule would not require the covered entity to provide a follow-up notice if a covered recipient receiving paper updates or confirms an electronic address in response to receiving the initial notice, and the covered recipient has not opted out of e-delivery.
                        <SU>255</SU>
                        <FTREF/>
                         A covered entity may begin using e-delivery for such covered recipients receiving paper at any time after the covered recipient updates or confirms an electronic address in response to the initial or follow-up notice. Covered recipients receiving paper who have updated or confirmed an electronic address after receiving one of these notices have indicated that they are ready to receive covered information electronically at the electronic address they have updated or confirmed without the need for an additional notice or for additional time to prepare for the transition. For these reasons, it is not necessary to require covered entities to send a follow-up notice since the covered recipient has already indicated that she is on notice of the transition to e-delivery and has not opted out. Furthermore, this exception would avoid any added costs and operational burdens associated with the follow-up notice for covered recipients who have demonstrated their willingness to receive information electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>255</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(e).
                        </P>
                    </FTNT>
                    <P>
                        Similarly, the proposed rule would provide that a covered entity need not provide the follow-up notice if a covered recipient, at any time after receiving the initial notice, opts out of electronic delivery and elects to receive 
                        <PRTPAGE P="45921"/>
                        all or a subset of covered information in paper format.
                        <SU>256</SU>
                        <FTREF/>
                         Covered recipients who opt out of e-delivery after receiving the initial notice have indicated their preference for paper format and therefore do not require the follow-up notice. It would be misleading to send these covered recipients the follow-up notice for an upcoming transition to electronic delivery that they will not be experiencing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>256</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(f).
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed requirements for the initial and follow-up notices of the default to e-delivery:</P>
                    <P>112. In lieu of the proposed initial and follow-up notices, should we take a different approach to informing covered recipients of a default to e-delivery? Should we require additional notices or remove any of the proposed notices? Should covered recipients receiving paper receive only one paper notice before a covered entity can default the covered recipient into e-delivery, rather than the initial notice and follow-up notice, as proposed? Should we adjust the timing of the notices? Should we limit how soon the follow-up notice could be provided after the initial notice by requiring the follow-up notice to be provided 30 days prior to the date the covered entity transitions to default e-delivery, as proposed? Do commenters have other suggestions on when the follow-up notice should be required to be provided (for example, 60 days prior to the date the covered recipient transitions to default e-delivery or some other number of days)?</P>
                    <P>
                        113. In addition to the proposed initial and follow-up notices, should covered recipients receiving paper be provided with one paper notice at any time after they are defaulted into e-delivery (
                        <E T="03">e.g.,</E>
                         180 days afterwards, one year afterwards, or in each of the two years afterwards) reminding them of the ability to opt out and receive covered information in paper format, and to update their contact information? Would the additional costs of issuing a subsequent notice be warranted if it serves to inform covered recipients of the transition, especially those who may have missed the initial and follow-up notices and are unaware that they were defaulted to electronic delivery?
                    </P>
                    <P>114. Does the rule, as proposed, provide covered entities with enough flexibility to determine, based on their own circumstances, how to notify covered recipients receiving paper of the upcoming change to the delivery method? If not, what else might be necessary?</P>
                    <P>
                        115. Should we prescribe specific language to be included in the prominent statements that are required in the notices? For example, should we provide a template notice with prescribed headings concerning the transition to e-delivery, the option to opt out of e-delivery and receive paper versions of covered information, and the process for updating an electronic address? Should we not prescribe language and make the notice's content requirements more principles-based? Should we require the proposed brief statement to identify the electronic address of the covered recipient that the covered entity has on file (if available) that it intends to use to satisfy its delivery obligations to the covered recipient? Would it be operationally difficult or burdensome to personalize the notices in this manner? Are there potential privacy or cybersecurity concerns in providing personal electronic addresses in mailings? If so, should we require that the electronic address be partially anonymized (
                        <E T="03">e.g., Jo*******oE@xyz.com</E>
                        ) to address these concerns? Should we instead only require the statement to specify the electronic method for delivering to the covered recipient, such as the email address on file, a mobile phone number on file or an inbox available in a covered entity's website?
                    </P>
                    <P>116. Should the notices contain any additional required contents, and if so, what should that content be?</P>
                    <P>
                        117. Should the notices require covered entities to state the e-delivery methods that may be used, as proposed, or would an alternative approach be more appropriate? 
                        <SU>257</SU>
                        <FTREF/>
                         For example, should covered entities be required to specify how each individual item of covered information will be delivered in all or any of the notices? If so, would this have the effect of “locking in” covered entities to a particular e-delivery method or preventing them from changing to the other method (if permissible under the rule)? If all or any of the notices require the delivery method for each item of covered information to be specified, should covered entities be required to notify covered recipients before changing the method? If so, how? Or should the notice itself indicate the specified method is subject to change?
                    </P>
                    <FTNT>
                        <P>
                            <SU>257</SU>
                             
                            <E T="03">See also supra</E>
                             section II.B.2 (posing a similar question in the context of the disclosure of e-delivery).
                        </P>
                    </FTNT>
                    <P>118. Are covered entities able to operationalize a means of updating or confirming a covered recipient's electronic address in the paper notice (for example, through a QR code, website, mobile application, mail, or toll-free telephone number)?</P>
                    <P>119. Should we require the separate delivery of the initial notice from other types of covered recipient communications, as proposed?</P>
                    <P>120. Should the transition process include, as proposed, an exception from the follow-up notice, if a covered recipient receiving paper updates or confirms an electronic address in response to receiving the initial notice? Similarly, if a covered recipient opts out of e-delivery at any time after receiving the initial notice, should the rule, as proposed, state that a covered entity is not required to provide the follow-up notice? Alternatively, should we prohibit providing additional notices once a covered recipient opts out of e-delivery? Is there potential for harm or abuse of the transition provisions if covered entities send follow-up notices to covered recipients who have already opted out of e-delivery?</P>
                    <P>
                        121. We are not proposing an express recordkeeping provision in proposed Reg E-Delivery relating to the provision of the initial and follow-up notices. Should we instead include a direct, dedicated recordkeeping provision in proposed Reg E-Delivery that would require covered entities to maintain records regarding these notices? 
                        <SU>258</SU>
                        <FTREF/>
                         Or should such a provision be included in the books and records rules of the respective categories of covered entities (as applicable)?
                    </P>
                    <FTNT>
                        <P>
                            <SU>258</SU>
                             
                            <E T="03">See</E>
                             discussion 
                            <E T="03">supra</E>
                             footnote 124.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">E. E-SIGN Act</HD>
                    <P>
                        For the reasons discussed below, to the extent that any covered information delivered under proposed Reg E-Delivery otherwise is subject to the consumer consent requirements of the E-SIGN Act, we are proposing an exemption from these consent requirements.
                        <SU>259</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>259</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.100 (providing that, notwithstanding 15 U.S.C. 7001(c), a covered entity may rely on Regulation E-Delivery to use electronic delivery to deliver covered information to covered recipients, provided that the requirements in §§ 303.102-104 are satisfied, as applicable).
                        </P>
                    </FTNT>
                    <P>
                        Section 101(c) of the E-SIGN Act sets forth special provisions that apply when a statute, regulation, or other rule of law requires that information relating to a transaction be provided or made available to a consumer in writing. Specifically, section 101(c) of the E-SIGN Act provides that such written information may be provided to a consumer electronically as long as the consumer has affirmatively consented to e-delivery and addresses how a consumer may consent to receiving such 
                        <PRTPAGE P="45922"/>
                        information electronically.
                        <SU>260</SU>
                        <FTREF/>
                         We understand that covered entities have interpreted section 101(c) of the E-SIGN Act as requiring that a covered entity seek to obtain or confirm the covered recipient's affirmative consent to e-delivery via email or other electronic means and that the covered recipient respond in kind.
                        <SU>261</SU>
                        <FTREF/>
                         While most information defined as “covered information” for purposes of proposed Reg E-Delivery is not required to be delivered “in writing,” some is. For example, prospectuses as defined in section 2(a)(10) of the Securities Act,
                        <SU>262</SU>
                        <FTREF/>
                         confirmations of transactions under Exchange Act rule 10b-10, certain notifications under Regulation S-P, certain distribution notices under section 19(a) of the Investment Company Act, and certain information under Schedule 14C are all required or defined to be “in writing,” such that the affirmative consent requirement in section 101(c) of the E-SIGN Act could apply to the extent such information is provided to consumers.
                        <SU>263</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>260</SU>
                             Section 106(1) of the E-SIGN Act defines “consumer” as “an individual who obtains, through a transaction, products or services which are primarily for personal, family, or household purposes, and also means the legal representative of such an individual.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>261</SU>
                             
                            <E T="03">See, e.g.,</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44, at n.17 (“Applying E-Sign's requirements results in a cumbersome, multiple-step process for collecting consents, and, in the experience of financial services firms, many customers become confused, believing that they have already signed up for electronic delivery. Not infrequently, customers overlook or ignore the confirming email from the firm or call their representatives to clear up their confusion. In a 2022 survey commissioned by SIFMA, over a quarter of customers surveyed who do not receive electronic delivery currently say they have signed up but still receive paper documents.”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>262</SU>
                             Section 2(a)(10) of the Securities Act defines the term “prospectus” to include certain communications that are “written or by radio or television.” 
                            <E T="03">See</E>
                             15 U.S.C. 77b(a)(10) (defining the term “prospectus,” in relevant part, to mean “any prospectus, notice, circular, advertisement, letter, or communication, written or by radio or television, which offers any security for sale or confirms the sale of any security”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>263</SU>
                             Statutes and Commission rules that may involve a requirement for a covered entity to deliver information to consumers in writing include: (for broker-dealers) 17 CFR 240.15
                            <E T="03">l</E>
                            -1(a)(2)(i), 17 CFR 248.1-248.30, 17 CFR 240.10b-10, 17 CFR 240.10b-16, 17 CFR 240.8c-1 and 17 CFR 240.15c2-1, 17 CFR 240.15c1-5 and 17 CFR 240.15c1-6, 17 CFR 240.15c2-5, 17 CFR 240.15c3-3(b)(3)(iv), 17 CFR 240.15c3-3(b)(4)(i)(B) through (C) and (b)(4)(iv), 17 CFR 240.15c3-3(j), 17 CFR 240.15c3-3(o)(2) and (o)(3)(ii), 17 CFR 240.15g-2 through 17 CFR 240.15g-6, 17 CFR 240.15g-9(a)(2)(ii)(A), 17 CFR 240.15g-9(b)(1), (b)(3) and (b)(4), 17 CFR 242.606(b)(2), 17 CFR 242.607(a), 17 CFR 240.15c3-1d, 17 CFR 240.15Ba1-1, 15 U.S.C. 78k(d)(2), and 15 U.S.C. 78o(b)(13); (for funding portals) 17 CFR 248.1-248.30, 17 CFR 240.17Ad-15(g), 17 CFR 240.17Ad-17(c), 17 CFR 248.30; (for security-based swap dealers and major security-based swap participants) 17 CFR 240.15Fh-3 and 17 CFR 240.15Fh-5, 17 CFR 240.18a-4, 17 CFR 240.18a-7 and 17 CFR 240.18a-10; (for security-based swap data repositories) 17 CFR 240.13n-10; (for security-based swap execution facilities) 17 CFR 242.812; (for registered investment advisers) 15 U.S.C. 80b-6(3) and rules 17 CFR 275.206(3)-2, 17 CFR 275.206(4)-2(a)(2) and (a)(5), 17 CFR 248.1-248.30; (for investment companies and entities excluded from the definition of “investment company”) 17 CFR 270.3a-4(a)(2)(iii), 15 U.S.C. 80a-7(e), 15 U.S.C. 80a-16(c), 15 U.S.C. 80a-19(a)(2), 17 CFR 270.19a-1, 17 CFR 270.23c-1(a)(5), 15 U.S.C. 80a-27(e), 17 CFR 270.30e-1(f), 17 CFR 270.30e-3, 15 U.S.C. 80a-29(i), 15 U.S.C. 80a-63, 17 CFR 248.1-248.30; (for issuers) 17 CFR 230.428 and Form S-8, 17 CFR 230.502(b) and (d), 17 CFR 230.504(b)(3), 17 CFR 230.147(f)(3), 17 CFR 230.147A(f)(3); (for issuers and/or other soliciting parties) 17 CFR 240.14c-2.
                        </P>
                    </FTNT>
                    <P>
                        Under section 104(d)(1) of the E-SIGN Act, a Federal regulatory agency may exempt, without condition, a specified category or type of record from the consumer consent requirements in section 101(c) if the exemption is necessary to eliminate a substantial burden on electronic commerce and will not increase the material risk of harm to consumers. Pursuant to the authority in section 104(d)(1) of the E-SIGN Act, the Commission is proposing to exempt covered information from the consent requirements of the E-SIGN Act, to the extent such requirements otherwise would apply to the delivery of covered information under Reg E-Delivery (because the covered information is required or defined to be “in writing,” as described above), in order to eliminate a substantial burden on electronic commerce.
                        <SU>264</SU>
                        <FTREF/>
                         Specifically, we understand that the consent requirements of E-SIGN may significantly burden covered recipients' ability to receive covered information in the format that meets their preference, for instance because they may believe they have signed up for e-delivery when they have actually not done so (where a multi-step consent process has not been met).
                        <SU>265</SU>
                        <FTREF/>
                         Additionally, these requirements may burden covered entities and covered recipients that prefer to provide affirmative consent in a manner different from that specified in the E-SIGN Act, including telephonic or other oral consent, consent on paper, or consent by other electronic means. As described in detail in the sections above, the provisions of Reg E-Delivery collectively would eliminate this burden by permitting covered recipients to receive covered information in the format that meets their preference and in a manner more consistent with existing business relationships and practices.
                    </P>
                    <FTNT>
                        <P>
                            <SU>264</SU>
                             Provisions of proposed Reg E-Delivery that could be viewed as involving consumer consent (although they do not require information relating to a transaction be provided or made available to a consumer in writing) include proposed Reg E-Delivery § 303.102(b), § 303.102(f), § 303.102(g), § 303.104(c)(1)(iv), § 303.104(d), and § 303.104(e).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>265</SU>
                             
                            <E T="03">See</E>
                             SIFMA Letter, 
                            <E T="03">supra</E>
                             footnote 44, at n.17; 
                            <E T="03">see also</E>
                             discussion at 
                            <E T="03">supra</E>
                             section II.A.
                        </P>
                    </FTNT>
                    <P>
                        Furthermore, the proposal would not increase the material risk of harm to consumers. As described above, we understand that most covered recipients prefer receiving covered information electronically, reflecting the evolution in technology and the ways that investors and other recipients of covered information have come to use technology in the decades since the Commission published the E-Delivery Guidance Releases (and since the enactment of E-SIGN in 2000).
                        <SU>266</SU>
                        <FTREF/>
                         Reg E-Delivery as proposed includes safeguards to help ensure that the preferences of covered recipients who prefer to continue receiving covered information in paper format are honored, and that the process for expressing these preferences is transparent and not overly burdensome.
                        <SU>267</SU>
                        <FTREF/>
                         The transition process for covered recipients currently receiving paper would address these goals, as well as the conditions under which the Commission would consider delivery requirements under the Federal securities laws to have been satisfied by electronic delivery (including, among others, the requirements for disclosure of e-delivery, the content of e-delivery, the provision of paper upon request, and the requirements for website availability, all discussed above).
                    </P>
                    <FTNT>
                        <P>
                            <SU>266</SU>
                             
                            <E T="03">See supra</E>
                             sections I.B and II.A.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>267</SU>
                             
                            <E T="03">See supra</E>
                             sections II.B.2, II.B.3, II.B.4, II.B.7, and II.D.
                        </P>
                    </FTNT>
                    <P>We request comment on the Commission's determination to propose a regulatory exemption from the consent requirements of the E-SIGN Act:</P>
                    <P>122. Is the proposed regulatory exemption appropriate? Do commenters agree that Reg E-Delivery as proposed is necessary to eliminate a substantial burden on electronic commerce and would not increase the material risk of harm to consumers? Are there any respects in which covered entities would prefer to use other affirmative consent processes in connection with any covered information that should be included in the proposed exemption (including telephonic or other oral consent, or consent on paper)?</P>
                    <P>
                        123. In addition to the statutory and regulatory provisions described above that may involve a requirement for covered entities to deliver information to consumers in writing, are there any other such requirements under the Federal securities laws that the Commission should specifically include in any adoption of the proposed exemption?
                        <PRTPAGE P="45923"/>
                    </P>
                    <HD SOURCE="HD2">F. Amendments to Current Commission Rules To Facilitate Proposed E-Delivery Approach </HD>
                    <HD SOURCE="HD3">1. Rescission of Rule Addressing Internet Availability of Fund Shareholder Reports</HD>
                    <P>
                        We are proposing to rescind rule 30e-3. Subject to certain conditions, rule 30e-3 under the Investment Company Act generally permits investment companies to satisfy shareholder report delivery requirements by making those reports available online and then providing a notice of that availability through a paper notice, such as a postcard, rather than directly mailing the report (or emailing an electronic version of the report or a link to the report) to shareholders.
                        <SU>268</SU>
                        <FTREF/>
                         In 2022, the Commission amended the scope of rule 30e-3 to exclude investment companies registered under Form N-1A. Rule 30e-3 therefore currently only applies to shareholder reports delivered by registered closed-end funds and insurance company separate accounts that are management investment companies offering variable annuity and variable life insurance contracts.
                    </P>
                    <FTNT>
                        <P>
                            <SU>268</SU>
                             
                            <E T="03">See</E>
                             Rule 30e-3 Adopting Release, 
                            <E T="03">supra</E>
                             footnote 213.
                        </P>
                    </FTNT>
                    <P>
                        Rule 30e-3 was designed as a rule for investors who receive disclosure through paper delivery as opposed to e-delivery. By contrast, under the proposed rule, covered entities could use e-delivery to deliver covered information to covered recipients who have provided an electronic address—only those covered recipients who either have declined to provide an electronic address, affirmatively opted out of e-delivery, or who have never responded to a covered entity's request to provide an electronic address would continue to receive paper. To the extent that investors who currently receive shareholder reports today under rule 30e-3 have provided an electronic address, funds relying on Reg E-Delivery would be permitted to transition these investors to e-delivery unless they affirmatively opt out.
                        <SU>269</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>269</SU>
                             
                            <E T="03">See infra</E>
                             footnote 615 and accompanying text (discussing costs associated with proposed rescission of rule 30e-3).
                        </P>
                    </FTNT>
                    <P>
                        Rule 30e-3 would no longer be necessary if the Commission adopts Reg E-Delivery. Rule 30e-3 already has a limited scope, in that it applies only to delivery obligations of registered closed-end funds and certain insurance company separate accounts, and even as to those entities applies only to their obligations to deliver shareholder reports. The rule's scope practically would be further limited by Reg E-Delivery because, if that rule is adopted, we anticipate that covered entities eligible to use rule 30e-3 would instead rely on Reg E-Delivery where a covered recipient has provided an electronic address. Further, as discussed above, under Reg E-Delivery, e-delivery would not include the use of a paper postcard with a URL (or QR code or other pathway) that would require a covered recipient to take an extra step to access covered information electronically.
                        <SU>270</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>270</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.1.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed recission of rule 30e-3:</P>
                    <P>124. Do commenters agree with the proposal to rescind rule 30e-3? Do commenters agree that rule 30e-3 would no longer be necessary if the Commission were to adopt Reg E-Delivery because of the current limited scope of rule 30e-3, and because covered entities eligible to use rule 30e-3 would be more likely to instead rely on Reg E-Delivery where a covered recipient has provided an electronic address? Why or why not?</P>
                    <P>125. Are there any difficulties that funds that currently rely on rule 30e-3 (which includes certain funds registered on Forms N-2 and N-3) would encounter with the proposed recission of rule 30e-3? What are those difficulties, and is the one-year transition period that the Commission is proposing for the new e-delivery framework, discussed below in section II.I, sufficient to help mitigate those difficulties? Would smaller funds require a longer compliance period to help mitigate those difficulties?</P>
                    <HD SOURCE="HD3">2. Amendments to Requirements for the Dissemination of Proxy Materials and Tender Offer Materials</HD>
                    <HD SOURCE="HD3">(a) Background</HD>
                    <P>
                        Providing issuers and other soliciting persons with the flexibility to furnish proxy materials to shareholders in an effective and cost-efficient manner by taking advantage of technological developments in electronic communications and the growth of the internet has been the focus of Commission guidance 
                        <SU>271</SU>
                        <FTREF/>
                         and numerous rules.
                        <SU>272</SU>
                        <FTREF/>
                         Recognizing the expanded use of the internet to disseminate information in a reliable and cost-effective way and the difficulties faced by issuers in relying on affirmative consent to electronic delivery of proxy materials, in January 2007, the Commission adopted a “notice and access” model permitting issuers and other soliciting persons to satisfy their obligations to deliver proxy materials by posting their proxy materials on a website and providing shareholders with a notice informing them that the materials are available at a specific website address and explaining how to access those materials.
                        <SU>273</SU>
                        <FTREF/>
                         To provide shareholders with the ability to choose whether to access proxy materials by paper, email, or the internet, the Commission subsequently adopted amendments to the proxy rules in July 2007 requiring issuers and other soliciting persons to post their proxy materials on a website, regardless of whether the soliciting person elects to furnish its proxy materials to shareholders by delivering only a notice of the internet availability of the proxy materials (referred to as the notice-only delivery option) or by delivering a full set of the proxy materials (referred to as the full set delivery option).
                        <SU>274</SU>
                        <FTREF/>
                         The notice and access model for furnishing proxy materials to shareholders, together with the universal requirement for internet availability of proxy materials, was intended by the Commission to provide a lower cost alternative for furnishing proxy materials to shareholders, improve the efficiency of the proxy process, and facilitate shareholder communication by allowing shareholders to choose how to access proxy materials.
                        <SU>275</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>271</SU>
                             
                            <E T="03">See, e.g.,</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3 (describing and providing examples of appropriate electronic delivery practices for, among other information, proxy solicitation materials); 1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3 (providing an example of electronic delivery of proxy materials and processing of voting instructions); 2000 Guidance, 
                            <E T="03">supra</E>
                             footnote 3 (providing an example of appropriate electronic delivery of proxy solicitation materials).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>272</SU>
                             
                            <E T="03">See, e.g.,</E>
                             E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13 (establishing an optional notice and access delivery method); Shareholder Choice Regarding Proxy Materials, Release No. 34-56135 (July 26, 2007) [72 FR 42222 (Aug. 1, 2007)] (the “Shareholder Choice Adopting Release”) (requiring that proxy materials be posted online and shareholders be notified of the electronic availability of such materials); Internet Availability of Proxy Materials; Regulation of Takeovers and Security Holder Communications; Cross-Border Tender and Exchange Offers, Business Combinations and Rights Offerings; Certain Other Related Rule Corrections, Release No. 34-55146A (Mar. 17, 2008) [73 FR 17810 (Apr. 1, 2008)] (the “Technical Amendments Release”) (revising the rule text to explicitly exclude all business combination transactions from the notice and access method); and Amendments to Rules Requiring Internet Availability of Proxy Materials, Release No. 33-9108 (Feb. 22, 2010) [75 FR 9074 (Feb. 26, 2010)] (the “Amendments Adopting Release”) (allowing additional flexibility in the formatting and language to be used in the notice of internet availability).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>273</SU>
                             
                            <E T="03">See</E>
                             E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>274</SU>
                             
                            <E T="03">See</E>
                             Shareholder Choice Adopting Release, 
                            <E T="03">supra</E>
                             footnote 272.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>275</SU>
                             
                            <E T="03">See id.</E>
                             at sections II, VI.A, and VI.C.1.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, under the current proxy rules, an issuer or other soliciting person can satisfy its obligation to 
                        <PRTPAGE P="45924"/>
                        furnish proxy materials to shareholders by posting its proxy materials on a website and sending a notice of internet availability of proxy materials (the “notice of internet availability”) or providing a full set of proxy materials (the “full set”) to record holders.
                        <SU>276</SU>
                        <FTREF/>
                         A soliciting person does not have to choose one option or the other as the exclusive means for providing proxy materials to shareholders. Rather, a soliciting person may use the notice-only delivery option to provide proxy materials to some shareholders and the full set delivery option to provide proxy materials to other shareholders.
                        <SU>277</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>276</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-3(a); 17 CFR 240.14a-16 (“rule 14a-16”). The notice-only delivery option may not be used by an issuer or other soliciting person in connection with a proxy solicitation related to a business combination transaction. 
                            <E T="03">See</E>
                             17 CFR 240.14a-16(m). For purposes of this section only, the term “proxy materials” includes: (1) with respect to issuers, proxy statements on Schedule 14A, proxy cards, information statements on Schedule 14C, annual reports to security holders required by Exchange Act rules 14a-3 and 14c-3; or (2) with respect to other soliciting persons, proxy statements on Schedule 14A and proxy cards. Because the focus of this section is information that is required to be delivered to shareholders under the proxy rules, the term “proxy materials” does not include soliciting material required to be filed under Exchange Act rule 14a-12 or additional soliciting material required to be filed under Exchange Act rule 14a-6(b). For the avoidance of doubt, a full set of proxy materials for a soliciting person other than the issuer would include a proxy statement on Schedule 14A and proxy card.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>277</SU>
                             
                            <E T="03">See</E>
                             Shareholder Choice Adopting Release, 
                            <E T="03">supra</E>
                             footnote 272, at section II.A.
                        </P>
                    </FTNT>
                    <P>
                        If the issuer has obtained affirmative consent to electronic delivery of proxy materials from a record holder, the issuer generally would deliver the notice of internet availability or the full set to the record holder electronically. As a practical matter, other soliciting persons cannot rely on affirmative consents to electronic delivery that the issuer has obtained from shareholders to deliver the notice or full set to record holders electronically.
                        <SU>278</SU>
                        <FTREF/>
                         However, if the issuer elects to send the soliciting person's proxy materials, the issuer may share the benefit of any affirmative consent to electronic delivery of proxy materials that it has obtained from shareholders by delivering the soliciting person's proxy materials electronically to consenting shareholders. The current proxy rules permit issuers and other soliciting persons to “household” the notice of internet availability or full set, as applicable, by sending a single copy of the notice of internet availability or a single copy of the full set to more than one record holder at a shared address if the conditions for householding are satisfied.
                        <SU>279</SU>
                        <FTREF/>
                         The issuer or other soliciting person must provide a paper or email copy of the proxy materials at no charge to record holders requesting such copy.
                        <SU>280</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>278</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-7 (“rule 14a-7”). Rule 14a-7 sets forth the obligation of issuers either to provide a shareholder list including names, addresses, and securities positions of its record holders to a requesting shareholder or to send the shareholder's proxy materials on the shareholder's behalf, except when the issuer is soliciting proxies in connection with a going-private transaction or a roll-up transaction. If the issuer is concerned about sharing the shareholder list information with the requesting shareholder, the issuer may choose to send the shareholder's proxy materials on the shareholder's behalf.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>279</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-3(e), including the note to paragraph (e)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>280</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(j)(1) through (2).
                        </P>
                    </FTNT>
                    <P>
                        Brokers, banks, and similar intermediaries generally furnish proxy materials to beneficial owners on behalf of issuers and other soliciting persons.
                        <SU>281</SU>
                        <FTREF/>
                         The Shareholder Communications Rules impose obligations on issuers, other soliciting persons, and intermediaries to ensure that beneficial owners receive proxy materials and are given the opportunity to participate in the shareholder voting process.
                        <SU>282</SU>
                        <FTREF/>
                         Generally, these rules require issuers and other soliciting persons to send their proxy materials to intermediaries for forwarding to the beneficial owners. Within five business days of receiving proxy materials from the issuer or other soliciting person, the intermediary must forward the materials to beneficial owners.
                        <SU>283</SU>
                        <FTREF/>
                         Intermediaries forward the proxy materials, other than the proxy card, to beneficial owners along with a request for voting instructions that is similar to the proxy card.
                        <SU>284</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>281</SU>
                             The discussion in this section of “beneficial owners” refers to beneficial owners whose names and addresses do not appear directly in issuers' stock registers because they hold their securities through a broker, bank, trustee, or similar intermediary.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>282</SU>
                             17 CFR 240.14a-13, 17 CFR 240.14b-1, 17 CFR 240.14b-2, and 17 CFR 240.14c-7 are referred to collectively as the “Shareholder Communications Rules.” For additional discussion of the Shareholder Communications Rules, see E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>283</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(b)(2); 17 CFR 240.14b-2(b)(3). This requirement does not apply where the issuer has notified the intermediary pursuant to rule 14a-13(c) or rule 14c-7(c) that the issuer will send the annual report to security holders to non-objecting beneficial owners. 
                            <E T="03">See</E>
                             17 CFR 240.14b-1(c)(2)(ii); 17 CFR 240.14b-2(c)(2)(ii). “Non-objecting beneficial owners” are beneficial owners who do not object to having their names and addresses provided to issuers, at their request.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>284</SU>
                             A bank may include an executed proxy in lieu of a request for voting instructions when forwarding proxy materials to beneficial owners. 
                            <E T="03">See</E>
                             17 CFR 240.14b-2(b)(3).
                        </P>
                    </FTNT>
                    <P>
                        An intermediary may satisfy its obligation to forward proxy materials to beneficial owners by sending a notice of internet availability only if the issuer or other soliciting person requests it to do so and, in such cases, the intermediary must do so.
                        <SU>285</SU>
                        <FTREF/>
                         The intermediary may choose whether to direct beneficial owners to the issuer's or other soliciting person's website or to its own website to access the proxy materials.
                        <SU>286</SU>
                        <FTREF/>
                         If the intermediary has obtained affirmative consent to electronic delivery of proxy materials from a beneficial owner, the intermediary generally would deliver the full set of proxy materials to the beneficial owner electronically. Intermediaries are permitted, but not required, to “household” the notice of internet availability or full set, as applicable, by sending a single copy of the notice of internet availability or a single copy of the full set to more than one beneficial owner at a shared address if the conditions for householding are satisfied by the intermediary.
                        <SU>287</SU>
                        <FTREF/>
                         The intermediary is required to provide a requesting beneficial owner with a copy of the proxy materials, at no charge to the beneficial owner.
                        <SU>288</SU>
                        <FTREF/>
                         If a beneficial owner requests a copy of the proxy materials from the intermediary, the intermediary must in turn request such a copy from the issuer or other soliciting person within three business days after receiving the request from the beneficial owner and must forward the materials to the beneficial owner within three business days after receiving the copy from the issuer or other soliciting person.
                        <SU>289</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>285</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(d)(1); 17 CFR 240.14b-2(d)(1). The intermediary must prepare its own notice of internet availability and deliver it to beneficial owners after receiving the information required to be included in such notice from the issuer or other soliciting person and tailoring it for beneficial owners. 17 CFR 240.14b-1(e); 17 CFR 14b-2(e).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>286</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(d)(2); 17 CFR 240.14b-2(d)(2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>287</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1, note to paragraph (b)(2); 17 CFR 240.14b-2, note to paragraph (b)(3).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>288</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(4) (requiring the notice of internet availability of proxy materials to provide instructions for a security holder to request a paper or e-email copy of the proxy materials, 
                            <E T="03">at no charge</E>
                            ) (emphasis added); 17 CFR 240.14b-1(e)(1) (requiring the broker or dealer's notice of internet availability to include all information, as it relates to beneficial owners, required in a registrant's notice of internet availability under 17 CFR 240.14a-16(d), provided that the broker or dealer provides its own, or its agent's, toll-free telephone number, email address, and a website to service requests for copies from beneficial owners); 17 CFR 240.14b-1(d)(4)(i) through (ii); 17 CFR 240.14b-2(e)(1) (requiring the bank's notice of internet availability to include all information, as it relates to beneficial owners, required in a registrant's notice of internet availability under 17 CFR 240.14a-16(d), provided that the bank provides its own, or its agent's, toll-free telephone number, email address, and website to service requests for copies from beneficial owners); 17 CFR 240.14b-2(d)(4)(i) through (ii).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>289</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(d)(4)(i) through (ii); 17 CFR 240.14b-2(d)(4)(i) through (ii).
                        </P>
                    </FTNT>
                    <PRTPAGE P="45925"/>
                    <HD SOURCE="HD3">(b) Proposed Amendments to Exchange Act Regulations 14A and 14C</HD>
                    <P>
                        During the Commission's nearly two decades of experience with the notice and access model for delivering proxy materials,
                        <SU>290</SU>
                        <FTREF/>
                         there have been significant advances in electronic communication technologies and individuals' use of those technologies. In light of proposed Reg E-Delivery,
                        <SU>291</SU>
                        <FTREF/>
                         we are proposing to further update the delivery framework for proxy materials consistent with Reg E-Delivery to facilitate e-delivery, improve engagement with proxy materials, accommodate evolving delivery preferences of shareholders, and provide cost savings to issuers, intermediaries, and ultimately to shareholders by making e-delivery of proxy materials more efficient.
                        <SU>292</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>290</SU>
                             
                            <E T="03">See supra</E>
                             footnotes 271 and 272.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>291</SU>
                             
                            <E T="03">See supra</E>
                             section I.D.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>292</SU>
                             
                            <E T="03">See infra</E>
                             section III.D.
                        </P>
                    </FTNT>
                    <P>
                        If adopted, covered entities that comply with the conditions of Reg E-Delivery would be assured that they have satisfied, through the use of e-delivery, applicable requirements to deliver covered information under the Federal securities laws. Reg E-Delivery would also permit the use of e-delivery as the default method of delivery, subject to certain conditions.
                        <SU>293</SU>
                        <FTREF/>
                         Regulations 14A and 14C prescribe specific methods for issuers and other soliciting persons to furnish proxy materials and information statements to shareholders. Therefore, when electing to deliver these materials to shareholders electronically, issuers, other soliciting persons, and intermediaries cannot exclusively rely on Reg E-Delivery to satisfy their delivery obligations. Instead, they must look to Regulations 14A and 14C, as applicable, for the requirements they must comply with when delivering proxy materials and information statements, whether electronically or in paper format. To facilitate e-delivery of proxy materials and information statements, we are proposing to expressly incorporate the requirements associated with the permitted e-delivery methods and the requirements for website availability of information under Reg E-Delivery into the delivery framework for proxy materials. As proposed, issuers, other soliciting persons, and intermediaries would not be required to implement a default e-delivery system or use e-delivery to satisfy their obligations to deliver proxy materials under Regulation 14A or information statements under Regulation 14C. However, if an issuer, other soliciting person, or intermediary elects to use e-delivery to furnish proxy materials, the amendments we are proposing to Regulations 14A and 14C would require the issuer, other soliciting person, or intermediary to comply with the requirements associated with the permitted e-delivery methods and the requirements for website availability of information under Reg E-Delivery, in addition to the requirements in proposed amended Regulations 14A and 14C. We believe that expressly incorporating these requirements into the delivery framework for proxy materials would facilitate e-delivery, while preserving important features of the current requirements under Regulations 14A and 14C for shareholders,
                        <SU>294</SU>
                        <FTREF/>
                         and would promote consistent shareholder experiences through the uniform application of e-delivery requirements across all information required to be delivered under the Federal securities laws (with limited exception).
                        <SU>295</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>293</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>294</SU>
                             For example, the procedural and timing requirements for coordinating with intermediaries to deliver proxy materials to shareholders and additional content and timing requirements to facilitate proxy voting.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>295</SU>
                             Information required to be delivered under Regulation Crowdfunding, rule 15c2-11, and the trade acknowledgement rule for security-based swap transactions is excluded from the definition of “covered information.” 
                            <E T="03">See supra</E>
                             section II.B.1
                        </P>
                    </FTNT>
                    <P>Specifically, we are proposing amendments to the following rules:</P>
                    <P>• Rules 14a-1 and 14c-1 to include the definition of “address,” as proposed to be amended, to apply it more broadly in Regulations 14A and 14C;</P>
                    <P>• Rule 14a-3 to: (1) remove the provision related to the business combination exclusion in rule 14a-16; (2) revise certain other provisions to align with the requirements under Reg E-Delivery and the requirements in proposed amended rule 14a-16; (3) remove the definition of “address,” which we are proposing to include, as revised, in rules 14a-1 and 14c-1 instead; (4) clarify that certain references to “address” refer to a “mailing address” and not an electronic address; and (5) add a provision to clarify that when householding a statement of availability of proxy materials, the registrant must include for each shareholder at the shared address any control/identification numbers that the shareholder needs to access its form of proxy and instructions on how to access the form of proxy;</P>
                    <P>• Rule 14a-7 to: (1) clarify that the obligation to mail the requesting security holder's soliciting material to security holders is not limited to mailing a paper copy of such material; (2) revise certain other provisions to align with the requirements under Reg E-Delivery and the requirements in proposed amended rule 14a-16; (3) remove the requirement to provide names of shareholders who have made a permanent election to receive paper copies of proxy materials because we are proposing to remove this election from current rule 14a-16; (4) clarify that a security holder list must include all addresses; (5) clarify that providing a security holder list is not an option if the issuer cannot provide all of the security holder list information; and (6) remove the note providing that reasonably prompt methods of distribution may be used instead of mailing, which we believe would be unnecessary if proposed amendments to rule 14a-7 are adopted as proposed;</P>
                    <P>• Rule 14a-13 to: (1) update the means of conducting a broker search and requesting a list of non-objecting beneficial owners to remove reliance on first class mail; and (2) clarify that a list of non-objecting (or consenting) beneficial owners must include all addresses;</P>
                    <P>• Rule 14a-16 to expressly incorporate the permitted e-delivery methods, the requirements associated with those e-delivery methods, and the requirements for website availability of information under Reg E-Delivery into the delivery framework for proxy materials;</P>
                    <P>• Rule 14a-101 to: (1) revise Items 5 and 22 to clarify that certain references to “address” refer to a “mailing address” and not an electronic address; (2) revise Item 23 to align with the e-delivery methods under Reg E-Delivery and proposed amended rule 14a-16; and (3) add a requirement in Item 1 to disclose the website address where the proxy materials are available in the proxy statement itself;</P>
                    <P>
                        • Rules 14b-1 and 14b-2 to: (1) revise certain provisions to align with the requirements of Reg E-Delivery and the requirements in proposed amended rule 14a-16; (2) clarify that a list of non-objecting (or consenting) beneficial owners must include all addresses; (3) revise the deadline for intermediaries to send a statement of availability of proxy materials to beneficial owners; (4) include a note providing that intermediaries would be deemed to have met the requirements for website availability of information under Reg E-Delivery if they do not establish a separate website for beneficial owners to access the proxy materials; and (5) remove the record keeping and copy delivery requirements associated with the current permanent election for paper copies, which we are proposing to remove from rule 14a-16 as unnecessary 
                        <PRTPAGE P="45926"/>
                        if proposed Reg E-Delivery and amendments to rule 14a-16 are adopted as proposed;
                    </P>
                    <P>• Rules 14c-2, 14c-3, 14c-7 and 14c-101 to reflect the statement of availability method of e-delivery under Reg E-Delivery and proposed amended rule 14a-16;</P>
                    <P>• Certain rules under Regulations 14A and 14C to remove or revise provisions that we believe are outdated or would be unnecessary if Reg E-Delivery is adopted; and</P>
                    <P>• Certain rules under Regulations 14A and 14C to make changes that conform to the other amendments we are proposing to Regulations 14A and 14C.</P>
                    <P>We request comment on the approach we are proposing:</P>
                    <P>126. Should we amend current rule 14a-16 to expressly incorporate the permitted e-delivery methods, requirements associated with those e-delivery methods, and requirements for website availability of information under proposed Reg E-Delivery into the delivery framework for proxy materials, as proposed? Why or why not?</P>
                    <P>127. Is there an alternative approach that would promote consistent shareholder experiences across all information required to be delivered under the Federal securities laws? Is promoting a consistent shareholder experience an appropriate objective as we consider ways to facilitate electronic delivery of proxy materials? If not, what should be the primary objectives?</P>
                    <HD SOURCE="HD3">(c) Proposed Amendments to Exchange Act Rule 14a-16</HD>
                    <P>
                        We are proposing to amend rule 14a-16 to expressly incorporate the permitted e-delivery methods, the requirements associated with those e-delivery methods, and the requirements for website availability of information under Reg E-Delivery into the delivery framework for proxy materials.
                        <SU>296</SU>
                        <FTREF/>
                         The proposed amendments also would streamline rule 14a-16 to revise or remove requirements that are outdated or would be unnecessary under the proposed Reg E-Delivery framework.
                    </P>
                    <FTNT>
                        <P>
                            <SU>296</SU>
                             These Reg E-Delivery requirements would be expressly incorporated into proposed rule 14a-16, as well as proposed rules 14b-1 and 14b-2, through new defined terms that we propose to include in rule 14a-1, including “direct electronic delivery,” “electronic delivery requirements,” “statement of availability,” and “website availability requirements.”
                        </P>
                    </FTNT>
                    <P>
                        As described above, rule 14a-16 currently requires an issuer or other soliciting person to satisfy its obligation to furnish proxy materials to shareholders by posting its proxy materials on a website and sending a notice of internet availability or a full set of proxy materials to record holders. Currently, whether the soliciting person delivers a notice of internet availability or a full set electronically generally depends on whether the soliciting person has obtained affirmative consent to electronic delivery of proxy materials from the record holder. We are proposing to amend rule 14a-16 to establish that the e-delivery methods of Reg E-Delivery would constitute the only permissible methods of delivering proxy materials electronically and to require soliciting persons to comply with the applicable requirements of Reg E-Delivery, in addition to the applicable requirements in proposed amended rule 14a-16, when delivering proxy materials electronically.
                        <SU>297</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>297</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(a)(1)(i) and (ii) (providing that a registrant must use the following delivery methods when furnishing proxy materials to a security holder: a statement of availability, provided that the applicable requirements of Reg E-Delivery are satisfied; direct e-delivery, provided that the applicable requirements of Reg E-Delivery are satisfied; or paper format); proposed rule 14a-16(f) (imposing the same requirements on soliciting persons other than the registrant).
                        </P>
                    </FTNT>
                    <P>
                        Delivering a full set of proxy materials in paper would be the only alternative to e-delivery under proposed amended rule 14a-16.
                        <SU>298</SU>
                        <FTREF/>
                         That is, we are proposing to amend current rule 14a-16 to remove an alternative that is presently available—the option to send a notice of internet availability in paper. Currently, the notice of internet availability is delivered only to shareholders who have not consented to receive proxy materials through electronic means, unless the issuer elects to deliver a full set of proxy materials in paper format. Since the Commission adopted the notice and access model, which implemented the notice-only delivery option as an alternative to the full set delivery option, the number of shareholders who receive physical mailings of proxy materials has decreased significantly.
                        <SU>299</SU>
                        <FTREF/>
                         Further, we anticipate that additional shareholders would be transitioned to e-delivery under proposed Reg E-Delivery, if adopted as proposed, and that shareholders who have not consented to e-delivery of proxy materials and have declined to provide an electronic address under Reg E-Delivery may be more likely to continue to prefer receiving a full set of proxy materials in paper, rather than a notice of internet availability in paper. Therefore, the notice of internet availability as an alternative to e-delivery would not be necessary if the Commission adopts Reg E-Delivery and, if retained, could cause shareholder confusion.
                    </P>
                    <FTNT>
                        <P>
                            <SU>298</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(a)(1)(iii).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>299</SU>
                             Based on aggregated data provided by a proxy services provider for processing of positions held beneficially in “street name,” we understand that approximately 10% of deliveries of proxy materials by issuers for uncontested meetings in calendar year 2025 were physical mailings (2% full set by mail and 8% notice by mail), which represents a significant decrease from the 2008 proxy season (following the Commission's adoption of the notice and access model for proxy materials), during which 46% of deliveries of proxy materials were physical mailings.
                        </P>
                    </FTNT>
                    <P>
                        We are proposing corresponding amendments to rule 14a-16 to remove the current deadline for delivery of a notice of internet availability. The deadline imposed by current rule 14a-16 was intended to provide shareholders with sufficient time to receive the notice of internet availability, access the proxy materials at the website address specified in the notice, and request and receive a paper copy of the proxy materials before the shareholder meeting.
                        <SU>300</SU>
                        <FTREF/>
                         With the proposed removal of the notice of internet availability as an alternative method to furnish proxy materials to shareholders, the related deadline for sending the notice would no longer be necessary. Because shareholders would be able to access proxy materials more efficiently with direct e-delivery or e-delivery of a statement of availability of proxy materials, a similar deadline is unnecessary for e-delivery of proxy materials under proposed amended rule 14a-16. If Reg E-Delivery is adopted as proposed, regardless of the e-delivery method used, proxy materials would be required to be delivered no later than the date on which proxy materials are required to be delivered under the Federal securities laws.
                        <SU>301</SU>
                        <FTREF/>
                         The Federal securities laws generally do not impose a deadline for mailing proxy materials for a routine annual meeting of shareholders. Similarly, proposed amended rule 14a-16 would not impose a deadline for mailing proxy materials in paper format, which is the same approach taken under current rule 14a-16. Accordingly, if Reg E-Delivery is adopted as proposed, the deadline for delivering proxy materials for a routine annual meeting, whether delivered electronically or in paper, would 
                        <PRTPAGE P="45927"/>
                        generally be established by applicable state law.
                        <SU>302</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>300</SU>
                             E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13 (adopting a 40-day deadline for sending the notice of internet availability to shareholders in advance of the shareholder meeting date “to provide shareholders with sufficient time to receive the Notice, request copies of the materials, if desired, and review the proxy materials prior to executing a proxy”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>301</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(d); proposed rule 14a-16(a)(1)(i) through (ii) (requiring compliance with “electronic delivery requirements,” which are defined in proposed rule 14a-1 as the requirements in § 303.102 of Reg E-Delivery, for e-delivery of a statement of availability of proxy materials and direct e-delivery of proxy materials).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>302</SU>
                             State corporate law in the issuer's jurisdiction of organization and the issuer's governing documents generally establish the time period during which a notice of an annual or special shareholders' meeting must be provided to shareholders. Because the state law notice is typically included as part of the proxy statement, the minimum time period established under state law and the issuer's governing documents would operate as a deadline for mailing the proxy statement. In practice, most issuers distribute proxy materials far in advance of the minimum time period established under state law.
                        </P>
                    </FTNT>
                    <P>
                        If Reg E-Delivery is adopted, the e-delivery of a statement of availability of proxy materials under proposed amended rule 14a-16 would serve a similar function that the delivery of a notice of internet availability serves today under current rule 14a-16.
                        <SU>303</SU>
                        <FTREF/>
                         Although we are proposing to remove the notice of internet availability, which is typically delivered in paper format, we would retain, as revised for consistency with Reg E-Delivery, certain requirements associated with the notice that should apply equally to a statement of availability of proxy materials delivered electronically. For example, we are proposing to retain the requirement in current rule 14a-16 that a soliciting person provide a record holder or respondent bank with all the information required to be included in the notice of internet availability in sufficient time for the record holder or respondent bank to prepare and deliver the notice by the deadline, as amended to incorporate the content requirements and deadline for a statement of availability under sections 303.102(c)(1) and (d) of Reg E-Delivery.
                        <SU>304</SU>
                        <FTREF/>
                         Because sections 303.102(c)(2) and (d) of Reg E-Delivery would similarly prescribe certain content requirements and a deadline for direct e-delivery, we are proposing to amend rule 14a-16 to add a parallel requirement for direct e-delivery of proxy materials.
                        <SU>305</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>303</SU>
                             While current rule 14a-16 would allow for electronic delivery of a notice of internet availability, assuming the shareholder consented to receive proxy materials electronically, we understand this approach is not common for practical reasons.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>304</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(e)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>305</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(e)(1).
                        </P>
                    </FTNT>
                    <P>
                        We are proposing a number of conforming changes throughout Regulations 14A and 14C to reflect the permissible e-delivery methods under Reg E-Delivery being incorporated into rule 14a-16 and the removal of the notice of internet availability alternative from rule 14a-16.
                        <SU>306</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>306</SU>
                             
                            <E T="03">See</E>
                             proposed rules 14a-3(e), 14a-7(a)(2)(i), 14a-101 (Item 23), 14b-1(b)(2) (note), 14b-1(e), 14b-2(b)(3) (note), 14c-2, 14c-3, 14c-7(a)(5), 14c-101 (Item 5).
                        </P>
                    </FTNT>
                    <P>
                        The requirement that a soliciting person make its proxy materials available on a website, regardless of the method of delivery used, would be retained in proposed amended rule 14a-16.
                        <SU>307</SU>
                        <FTREF/>
                         We are proposing to amend rule 14a-16 to require that the proxy materials be made available on a website meeting the requirements in Reg E-Delivery no later than the date on which the proxy statement or annual report, as applicable, is sent to shareholders and, if applicable, no later than the date on which the statement of availability is delivered to shareholders.
                        <SU>308</SU>
                        <FTREF/>
                         We are proposing to retain the current requirement that proxy materials remain available on the website through the shareholder meeting and the prohibition on the Commission's electronic filing system being the website used for this purpose.
                        <SU>309</SU>
                        <FTREF/>
                         Similarly, we are proposing to retain the current requirement that additional soliciting materials be made available on the website no later than the day such materials are first sent to shareholders or made public and remain on the website through conclusion of the shareholder meeting.
                        <SU>310</SU>
                        <FTREF/>
                         We are proposing to remove from current rule 14a-16 the presentation and formatting requirements for proxy materials made available on a website because the same requirements are included in the website requirements in Reg E-Delivery, which would be incorporated into rule 14a-16.
                        <SU>311</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>307</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(b)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>308</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(b)(1)(i) (requiring compliance with “website availability requirements,” which are defined in proposed rule 14a-1 as the requirements of § 303.103 of Reg E-Delivery).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>309</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(b)(1)(i) and (ii).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>310</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(b)(2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>311</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.103(c), which is incorporated into proposed rule 14a-16(b)(1)(i) as “website availability requirements,” as defined in proposed rule 14a-1.
                        </P>
                    </FTNT>
                    <P>
                        Under current rule 14a-16, soliciting persons may not use the notice and access model to furnish proxy materials related to a business combination transaction, which means soliciting persons must use the full set delivery option for these transactions.
                        <SU>312</SU>
                        <FTREF/>
                         This exclusion was included in rule 14a-16 when initially adopted due to the Commission's desire to gain more experience with the notice and access model and the considerable length and complexity of typical proxy statements for business combination transactions.
                        <SU>313</SU>
                        <FTREF/>
                         After nearly two decades of experience with the notice and access model and given the significant advances in electronic communication technologies and individuals' use of those technologies during this time, we propose to amend rule 14a-16 to permit soliciting persons to choose between delivering a full set in paper or using permissible e-delivery methods under Reg E-Delivery, which allow notice and access (in the form of a statement of availability), in connection with business combination transactions.
                    </P>
                    <FTNT>
                        <P>
                            <SU>312</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(m).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>313</SU>
                             
                            <E T="03">See</E>
                             E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at section II.D.
                        </P>
                    </FTNT>
                    <P>
                        Current rule 14a-16 sets forth content, delivery, and filing requirements for the notice of internet availability.
                        <SU>314</SU>
                        <FTREF/>
                         Because, as proposed, Reg E-Delivery would include content requirements for the statement of availability, which would be incorporated into proposed amended rule 14a-16, we propose to amend rule 14a-16 to remove duplicative content requirements. Specifically, we are proposing to remove the following content requirements from the statement of availability of proxy materials because the same or substantially similar requirements would be included in Reg E-Delivery:
                    </P>
                    <FTNT>
                        <P>
                            <SU>314</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16.
                        </P>
                    </FTNT>
                    <P>
                        • Website address where the proxy materials are available; 
                        <SU>315</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>315</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(3); proposed Reg E-Delivery § 102(c)(1)(iii).
                        </P>
                    </FTNT>
                    <P>
                        • Instructions for requesting a paper or email copy of the proxy materials at no charge; 
                        <SU>316</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>316</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(4); proposed Reg E-Delivery § 303.102(c)(1)(v)(A) and (D). Although, as proposed, section 303.102(c)(1)(v)(D) of Reg E-Delivery would not require instructions on how to request an email copy of proxy materials delivered electronically. We believe that such a requirement would be unnecessary given that the statement of availability would include a direct link to the proxy materials in a format that is capable of being retained permanently.
                        </P>
                    </FTNT>
                    <P>
                        • List of materials being made available at the specified website; 
                        <SU>317</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>317</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(7); proposed Reg E-Delivery § 303.102(c)(1)(ii).
                        </P>
                    </FTNT>
                    <P>
                        • Website and email address where shareholders can request a copy of the current proxy materials; 
                        <SU>318</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>318</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(8) (requirement to include in the notice of internet availability a toll-free telephone number, an email address, and an internet website where the shareholder can request a copy of the proxy statement for the particular meeting); proposed Reg E-Delivery §§ 303.102(f) (requirement to provide, upon request, paper copies of materials delivered electronically); 303.102(c)(1)(v)(D) (requirement to include in a statement of availability a description of the process to request paper copies that provides, at a minimum, a website through which the right to obtain a paper copy can be exercised).
                        </P>
                    </FTNT>
                    <P>
                        • Requirements relating to pictures, logos, or similar design elements.
                        <SU>319</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>319</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(g)(3); proposed Reg E-Delivery § 303.102(e).
                        </P>
                    </FTNT>
                    <P>
                        Similarly, we are proposing to amend rule 14a-16 to remove the following 
                        <PRTPAGE P="45928"/>
                        requirements, which are duplicative of substantially similar requirements in Reg E-Delivery that would be incorporated into proposed amended rule 14a-16:
                    </P>
                    <P>
                        • Requirement that the proxy materials made available on the website be in a format convenient for both reading online and printing on paper; 
                        <SU>320</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>320</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(c); proposed Reg E-Delivery § 303.103(c).
                        </P>
                    </FTNT>
                    <P>
                        • Soliciting person's obligation to provide copies of the proxy materials for one year after the conclusion of the meeting; 
                        <SU>321</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>321</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(j)(3); proposed Reg E-Delivery § 303.102(f)(1) (in the context of proxy materials, would require a soliciting person to send, free of charge, one paper copy of the proxy materials delivered electronically to a shareholder in the two years preceding the date of the shareholder's request to any such shareholder requesting such a copy).
                        </P>
                    </FTNT>
                    <P>
                        • Obligation of soliciting persons other than registrants to provide copies of their proxy materials only to those shareholders they solicit.
                        <SU>322</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>322</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(l); proposed Reg E-Delivery § 303.102(f)(1) (in the context of proxy materials, would require a soliciting person to deliver paper copies only to shareholders to whom the soliciting person has delivered proxy materials electronically).
                        </P>
                    </FTNT>
                    <P>We are also proposing to remove certain content and other requirements that were helpful at the time rule 14a-16 was initially adopted due to the novelty of the notice and access model for delivering proxy materials but we believe are no longer necessary after nearly 20 years of experience with the notice and access model and increased use of electronic communications technology to access proxy materials. Specifically, we are proposing to remove the:</P>
                    <P>
                        • Requirement to indicate that the notice of internet availability is not a form for voting and presents only an overview of the more complete proxy materials and encourage shareholders to access and review the proxy materials before voting; 
                        <SU>323</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>323</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(2).
                        </P>
                    </FTNT>
                    <P>
                        • Requirement to indicate in the notice of internet availability that a paper or email copy of the proxy materials will not be provided except upon request; 
                        <SU>324</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>324</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(4).
                        </P>
                    </FTNT>
                    <P>
                        • Requirement to identify each matter to be acted on and state the soliciting person's recommendations in the notice of internet availability; 
                        <SU>325</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>325</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(6); 17 CFR 240.14a-16(l)(3)(i).
                        </P>
                    </FTNT>
                    <P>
                        • Requirement to include information in the notice of internet availability on how to obtain directions to attend the meeting and vote in person; 
                        <SU>326</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>326</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(11).
                        </P>
                    </FTNT>
                    <P>
                        • Provisions permitting certain materials, such as a pre-addressed, postage-paid reply card and an explanation of the reasons for the use of the notice and access model, to accompany a notice of internet availability; 
                        <SU>327</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>327</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(f)(2).
                        </P>
                    </FTNT>
                    <P>
                        • Requirement that plain English principles be used in the organization, language, and design of the notice of internet availability; 
                        <SU>328</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>328</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(g).
                        </P>
                    </FTNT>
                    <P>
                        In addition, we are proposing to remove requirements that are primarily relevant where notices of internet availability are delivered in paper format. We believe these requirements would no longer be necessary if the amendments to rule 14a-16 are adopted as proposed, because these amendments would remove the option to send a notice of internet availability in paper format, and if Reg E-Delivery is adopted as proposed, because Reg E-Delivery would allow shareholders to make a permanent election to receive proxy materials in paper format by opting out of e-delivery.
                        <SU>329</SU>
                        <FTREF/>
                         Specifically, we are proposing to remove the:
                    </P>
                    <FTNT>
                        <P>
                            <SU>329</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(f) (requirement that covered recipients be able to request paper copies of the covered information or opt out of electronic delivery effectively provides the ability to make a permanent election to receive paper copies and may be exercised pursuant to information required to be included in a statement of availability under section 102(c)(1)(v) of Reg E-Delivery and in direct delivery under section 102(c)(2) of Reg E-Delivery).
                        </P>
                    </FTNT>
                    <P>
                        • Requirement to include a toll-free telephone number where shareholders can request a copy of the current proxy materials; 
                        <SU>330</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>330</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(8) (requiring in the notice of internet availability a toll-free telephone number, an email address, and an internet website where the shareholder can request a copy of the proxy statement for the particular meeting). Section 303.102(c)(1)(v)(D) of Reg E-Delivery, which would be incorporated into proposed amended rule 14a-16, would require a statement of availability to include a description of the process to request paper copies that provides, at a minimum, a website through which the right to obtain a paper copy can be exercised.
                        </P>
                    </FTNT>
                    <P>
                        • Requirement to provide electronic copies of proxy materials to requesting record holders; 
                        <SU>331</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>331</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(j)(2).
                        </P>
                    </FTNT>
                    <P>
                        • Requirement to include in the notice of internet availability instructions for a shareholder to make a permanent election to receive paper or email copies of the proxy materials 
                        <SU>332</SU>
                        <FTREF/>
                         and the associated recordkeeping requirement; 
                        <SU>333</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>332</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>333</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(j)(4).
                        </P>
                    </FTNT>
                    <P>
                        • Requirement that the form of proxy is accompanied or preceded by a copy, via the same medium, of the proxy statement and any annual report to security holders; 
                        <SU>334</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>334</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(h)(2). 17 CFR 240.14a-4(f) imposes a substantially similar requirement such that an issuer (or other soliciting person) cannot deliver a form of proxy unless the security holder concurrently receives, or has previously received, a definitive proxy statement that has been filed with the Commission.
                        </P>
                    </FTNT>
                    <P>
                        • Requirement for the notice of internet availability of a soliciting person other than the registrant to indicate that there may be additional agenda items of which the soliciting person is not aware and whether execution of the soliciting person's form of proxy will invalidate a prior vote on matters not presented on the soliciting person's form of proxy; 
                        <SU>335</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>335</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(l)(3)(i) and (ii).
                        </P>
                    </FTNT>
                    <P>
                        • Provisions regarding the delivery of a full set of proxy materials as it relates to the notice of internet availability,
                        <SU>336</SU>
                        <FTREF/>
                         including (i) the requirement to incorporate in the proxy statement all the information required to appear in a notice of internet availability if a notice is not delivered separately, and (ii) a provision regarding instructions required in a notice of internet availability but not required to be included in a proxy statement if a full set of proxy materials is delivered.
                    </P>
                    <FTNT>
                        <P>
                            <SU>336</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(n).
                        </P>
                    </FTNT>
                    <P>Proposed amended rule 14a-16 would retain certain content and other requirements that are specific to proxy materials and not otherwise required under Reg E-Delivery. If Reg E-Delivery is adopted as proposed, a statement of availability of proxy materials would include the information required by section 303.102(c)(1) of Reg E-Delivery and the following information:</P>
                    <P>
                        • A prominent legend that states “Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting To Be Held [insert meeting date, time, and location]” 
                        <SU>337</SU>
                        <FTREF/>
                        ;
                    </P>
                    <FTNT>
                        <P>
                            <SU>337</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(c)(1)(i) (retaining requirement in 17 CFR 240.14a-16(d)(1), without specifying that such legend must be in bold-face type, supplemented with “date, time, and location of the meeting” required by 17 CFR 240.14a-16(d)(5)).
                        </P>
                    </FTNT>
                    <P>
                        • Any control/identification numbers 
                        <SU>338</SU>
                        <FTREF/>
                         that the shareholder needs to access its form of proxy and instructions on how to access the form of proxy; 
                        <SU>339</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>338</SU>
                             We note that we do not view a control number for executing a proxy or similar information necessary for executing a proxy or accessing proxy materials as personal financial information and inclusion thereof should not limit a covered entity's choice to use direct electronic delivery pursuant to section 102(c)(2) of Reg E-Delivery.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>339</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(c)(1)(ii) (retaining requirements in 17 CFR 240.14a-16(d)(9) and (10)).
                        </P>
                    </FTNT>
                    <P>
                        • The date by which a shareholder should make a request to obtain a paper copy of the proxy materials to facilitate 
                        <PRTPAGE P="45929"/>
                        timely delivery before the shareholder meeting.
                        <SU>340</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>340</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(c)(1)(iii) (retaining part of the requirement in 17 CFR 240.14a-16(d)(4)). This information would also be required in the direct e-delivery of proxy materials under proposed rule 14a-16(a)(1)(ii).
                        </P>
                    </FTNT>
                    <P>
                        The statement of availability of proxy materials would still be required to be delivered separately from other communications, except that, as is the case under current rule 14a-16, it may be combined with, or accompanied by, a permitted state law shareholders' meeting notice,
                        <SU>341</SU>
                        <FTREF/>
                         and in the case of a registered investment company, it may accompany a prospectus, summary prospectus, or report to shareholders.
                        <SU>342</SU>
                        <FTREF/>
                         While we are proposing to retain this requirement, we are not proposing to retain the exception allowing a notice of internet availability to be accompanied by a form of proxy if at least 10 calendar days have passed since the date the notice of internet availability was first sent to shareholders.
                        <SU>343</SU>
                        <FTREF/>
                         We believe this exception would be unnecessary since a statement of availability of proxy materials would only be delivered electronically and would provide direct access to the proxy statement and form of proxy via a direct link to a website that includes the proxy materials. We are also proposing to retain the requirement that a notice of internet availability be filed with the Commission no later than the date it is first sent to shareholders, as amended to apply to statements of availability instead of notices of internet availability.
                        <SU>344</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>341</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(e)(1); 17 CFR 240.14a-16(f)(1); 17 CFR 240.14a-16(f)(2)(ii); proposed rule 14a-16(c)(3)(i).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>342</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(f)(2)(iii); proposed rule 14a-16(c)(3)(ii).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>343</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(h)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>344</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(i); proposed rule 14a-16(c)(4).
                        </P>
                    </FTNT>
                    <P>
                        Issuers would still be required to provide shareholders with a means to execute a proxy as of the time a statement of availability is first sent to shareholders.
                        <SU>345</SU>
                        <FTREF/>
                         Additionally, issuers would still be able to send a form of proxy only if accompanied or preceded by the proxy statement.
                        <SU>346</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>345</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(b)(4); proposed rule 14a-16(d).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>346</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(h)(2); 17 CFR 240.14a-4(f). While we are not proposing to retain the requirement in 17 CFR 240.14a-16(h)(2) in proposed amended rule 14a-16, 17 CFR 240.14a-4(f) imposes a substantially similar requirement such that an issuer (or other soliciting person) cannot deliver a form of proxy unless the security holder concurrently receives, or has previously received, a definitive proxy statement that has been filed with the Commission.
                        </P>
                    </FTNT>
                    <P>
                        Proposed amended rule 14a-16 would also retain the current guidelines as to privacy of persons accessing a website used to post proxy materials 
                        <SU>347</SU>
                        <FTREF/>
                         and the use of electronic addresses of shareholders provided for the purpose of requesting copies of proxy materials,
                        <SU>348</SU>
                        <FTREF/>
                         as amended to include electronic addresses of shareholders provided for the purpose of opting out of e-delivery under Reg E-Delivery.
                        <SU>349</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>347</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(k)(1); proposed rule 14a-16(g)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>348</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(k)(2); proposed rule 14a-16(g)(2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>349</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(g)(2). The term “opt out of electronic delivery” used in proposed rule 14a-16(g)(2) would be defined in Rule 14a-1, as proposed to be amended, by referring to section 303.102(f)(2) of Reg E-Delivery.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed amendments to rule 14a-16:</P>
                    <P>
                        128. Current rule 14a-16(a)(1) provides a 40-calendar-day deadline for issuers to provide a notice of internet availability, which is typically delivered in paper format. If Reg E-Delivery and the amendments to rule 14a-16 are adopted as proposed, a statement of availability of proxy materials would be required to be delivered no later than the date by which the proxy materials are required to be delivered under the Federal securities laws.
                        <SU>350</SU>
                        <FTREF/>
                         Should we instead retain the 40-calendar-day deadline for the statement of availability of proxy materials, which would be required to be delivered electronically? Should we adopt a different deadline? For example, should we amend rule 14a-16 to implement a principles-based deadline that requires the statement of availability to be sent to shareholders by a date that would provide shareholders with a meaningful opportunity to request and obtain paper copies of the proxy materials before the shareholder meeting? Should we adopt a deadline that is a specific number of days less than 40 (
                        <E T="03">e.g.,</E>
                         5 or 10 calendar days prior to the date by which the proxy materials are required to be delivered under the Federal securities laws)? Why or why not? Are there certain state laws that we should consider in developing a deadline for the statement of availability to be sent to the shareholders?
                    </P>
                    <FTNT>
                        <P>
                            <SU>350</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(d).
                        </P>
                    </FTNT>
                    <P>
                        129. Should the Reg E-Delivery deadline for delivering covered information (
                        <E T="03">i.e.,</E>
                         no later than the date on which the covered information is required to be delivered under the Federal securities laws) apply to proxy materials, as proposed? If not, why not?
                    </P>
                    <P>130. Are there timing requirements for proxy materials that this provision would affect? If so, how should we modify the timing requirements in these cases?</P>
                    <P>
                        131. Certain kinds of covered information, such as proxy statements, request that shareholders act within a certain time frame to exercise their rights. Are the provisions of proposed rule 14a-16(c)(1)(i) and sections 303.102(c)(1)(i) and (ii) and 303.102(c)(2) of Reg E-Delivery adequate to alert shareholders to these deadlines to take action? 
                        <SU>351</SU>
                        <FTREF/>
                         Why or why not? Would a different method of distinguishing such time-sensitive covered information be preferred? Alternatively, is the prominent legend required by proposed rule 14a-16(c)(1)(i) no longer necessary given the disclosure required by sections 303.102(c)(1)(i) and (ii) and 303.102(c)(2) of Reg E-Delivery such that we should remove the legend requirement from proposed rule 14a-16?
                    </P>
                    <FTNT>
                        <P>
                            <SU>351</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(c)(1)(i) (requiring the statement of availability of proxy materials to include a prominent legend that states “Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting To Be Held [insert meeting date, time, and location]”); proposed Reg E-Delivery §§ 303.102(c)(1)(i) (which would require in a statement of availability of proxy materials a prominent statement alerting the shareholder that the proxy materials are available) and 303.102(c)(1)(ii) (which would require in a statement of availability of proxy materials a brief description of the proxy materials that indicates the proxy materials may require action by the shareholder receiving the proxy materials within a fixed time frame to exercise certain rights); proposed Reg E-Delivery § 303.102(c)(2) (requiring the same description as section 303.102(c)(1)(i) and (ii) in direct electronic deliveries of proxy materials).
                        </P>
                    </FTNT>
                    <P>
                        132. While we believe easy accessibility of electronically delivered proxy materials warrants paring down requirements from the notice of internet availability for the content that must be included in the statement of availability of proxy materials, does the statement of availability as proposed provide adequate information? Should any of the requirements we propose to remove be retained? Should we retain the requirement to include a toll-free telephone number and email address where shareholders can request a copy of the proxy materials, or is a website sufficient for this purpose given that, unlike notices of internet availability, statements of availability would only be delivered electronically with shareholders accessing the statement of availability (and potentially the proxy materials) electronically before determining to request a copy? Should the statement be required to refer shareholders to the proxy statement for more information on meeting details and agenda items? Would the proxy statement being one click away sufficiently serve the same purpose that rule 14a-16(d)(6) currently does to identify each matter intended to be acted on and the soliciting person's 
                        <PRTPAGE P="45930"/>
                        recommendations? Would other content requirements for the statement of availability of proxy materials be appropriate?
                    </P>
                    <P>133. Is the requirement in section 303.102(f)(1) of Reg E-Delivery to provide, upon request, paper copies of materials delivered electronically in the two years preceding the date of the shareholder's request substantially more burdensome than the requirement under current rule 14a-16(j)(3) to provide copies of proxy materials for one year following conclusion of the relevant meeting or corporate action?</P>
                    <P>134. As proposed, rule 14a-16 would require any electronic delivery of proxy materials to comply with Reg E-Delivery and its requirements. Is there currently any beneficial flexibility that would be lost by not having any method of electronic delivery other than under Reg E-Delivery? If yes, should proposed rule 14a-16 be modified to allow for such flexibility? What are the modifications that should be included to retain any existing flexibility?</P>
                    <P>135. Are there any difficulties that issuers would encounter with the proposed amendments to rule 14a-16? What are those difficulties and is the two-year transition period that the Commission is proposing for the new e-delivery framework and proposed amendments to rule 14a-16, discussed below in section II.H., sufficient to help mitigate those difficulties? Would smaller issuers require a longer compliance period to help mitigate those difficulties?</P>
                    <HD SOURCE="HD3">(d) Proposed Amendments to Shareholder Communications Rules (Exchange Act Rules 14a-13, 14b-1, 14b-2, and 14c-7)</HD>
                    <P>
                        Many shareholders hold their shares indirectly through a broker, bank, or similar intermediary. Because these “beneficial owners” do not hold their shares directly, their names and addresses do not appear on issuers' stock registers and the issuers must deliver proxy materials to the intermediaries, who are obligated to forward the materials to beneficial owners. The Shareholder Communications Rules 
                        <SU>352</SU>
                        <FTREF/>
                         set forth the obligations of issuers and intermediaries to ensure proper and timely delivery of proxy materials to beneficial owners to facilitate beneficial owners' participation in the voting process. The amendments we are proposing to rule 14a-16 necessitate corresponding amendments to the Shareholder Communications Rules to: (1) align with the proposed Reg E-Delivery framework; (2) reflect our proposed amendments to rule 14a-16; and (3) update the rules to reflect modern practices and technological advancements, similar to the amendments we are proposing to rule 14a-16. Specifically, we propose to amend the Shareholder Communications Rules to:
                    </P>
                    <FTNT>
                        <P>
                            <SU>352</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-13; 17 CFR 240.14b-1; 17 CFR 240.14b-2; 17 CFR 240.14c-7; 
                            <E T="03">supra</E>
                             footnote 282.
                        </P>
                    </FTNT>
                    <P>
                        • Revise the intermediary's obligation to forward proxy materials to its customers who are beneficial owners of the issuer's securities to specify that such materials may be delivered: (1) by direct e-delivery, provided that the applicable requirements of Reg E-Delivery are satisfied; or (2) in paper format.
                        <SU>353</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>353</SU>
                             
                            <E T="03">See</E>
                             proposed rules 14b-1(b)(2)(i)(A) and (B) and 14b-2(b)(3)(i)(A) and (B).
                        </P>
                    </FTNT>
                    <P>
                        • As a result of the revision discussed immediately above, amend the broker's or dealer's obligation to forward proxy materials to its customers who are beneficial owners of the issuer's securities 
                        <SU>354</SU>
                        <FTREF/>
                         to replicate the requirement under the current rules for the broker's or dealer's notice of internet availability 
                        <SU>355</SU>
                        <FTREF/>
                         that the broker's or dealer's request for voting instructions sent with the proxy statement include a brief description, if applicable, of the rules that permit the broker or dealer to vote the securities if the beneficial owner does not return his or her voting instructions.
                        <SU>356</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>354</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(b)(2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>355</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(e)(2); 17 CFR 240.14b-1(d)(5)(i)(B).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>356</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14b-1(b)(2)(ii).
                        </P>
                    </FTNT>
                    <P>
                        • Revise certain references to “addresses” to refer to “all addresses” to clarify that a list of non-objecting (or consenting) beneficial owners must include all addresses, which would include both mailing and electronic addresses, if available; 
                        <SU>357</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>357</SU>
                             
                            <E T="03">See</E>
                             proposed rules 14a-13(b); 14b-1(b)(3)(i); 14b-2(b)(4)(ii).
                        </P>
                    </FTNT>
                    <P>
                        • Remove the 40-calendar day deadline for delivering a notice of internet availability, which we propose to remove from rule 14a-16, as discussed above, and impose a different deadline for an intermediary's delivery of a statement of availability of proxy materials, which must be sent to beneficial owners no later than five business days after receiving the information required to be included in the statement from a soliciting person or such later date specified by the soliciting person; 
                        <SU>358</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>358</SU>
                             
                            <E T="03">See</E>
                             proposed rules 14b-1(d)(1) and 14b-2(d)(1). This five-business day period mirrors the time period that intermediaries have for many of their obligations under rules 14b-1 and 14b-2, including to forward proxy materials to beneficial owners after receipt from the soliciting person. 
                            <E T="03">See supra</E>
                             footnote 283 and accompanying text.
                        </P>
                    </FTNT>
                    <P>
                        • Add a note to clarify that when an intermediary does not establish its own website to host proxy materials 
                        <SU>359</SU>
                        <FTREF/>
                         and instead refers beneficial owners to the issuer or other soliciting person's website for access to the proxy materials, the website availability requirements of section 303.103 of Reg E-Delivery will be deemed to be met as they relate to the intermediary's obligations under that provision; 
                        <SU>360</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>359</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(d)(2) (providing that a broker or dealer may opt to establish a website at which beneficial owners are able to access the proxy materials); 17 CFR 240.14b-2(d)(2) (providing that a bank may opt to establish a website at which beneficial owners are able to access the proxy materials).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>360</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14b-1(d) (Note to paragraphs (d)(1) and (d)(2)); proposed rule 14b-2(d) (Note to paragraphs (d)(1) and (d)(2)).
                        </P>
                    </FTNT>
                    <P>
                        • Remove requirements that are relevant only to notices of internet availability delivered in paper format; 
                        <SU>361</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>361</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(d)(3); 17 CFR 240.14b-2(d)(3); 17 CFR 240.14b-1(d)(5); 17 CFR 240.14b-2(d)(5).
                        </P>
                    </FTNT>
                    <P>
                        • Remove the record keeping and copy delivery requirements associated with the current permanent election for paper or email copies, which we are proposing to remove from rule 14a-16 as unnecessary if proposed Reg E-Delivery and amendments to rule 14a-16 are adopted as proposed; 
                        <SU>362</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>362</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(d)(4)(iii); 17 CFR 240.14b-2(d)(4)(iii).
                        </P>
                    </FTNT>
                    <P>
                        • Revise the content requirements for an intermediary's statement of availability of proxy materials to incorporate the content requirements of section 303.102(c)(1) of Reg E-Delivery and add the requirement to include the website address where beneficial owners are able to access the intermediary's request for voting instructions; 
                        <SU>363</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>363</SU>
                             
                            <E T="03">See</E>
                             proposed rules 14b-1(e)(1) and (3) and 14b-2(e)(1) and (2).
                        </P>
                    </FTNT>
                    <P>• Revise references to “Notice of internet Availability of Proxy Materials” throughout to refer to “statement of availability of proxy materials,” where appropriate, to reflect the statement of availability method of e-delivery under Reg E-Delivery and proposed amended rule 14a-16; and</P>
                    <P>
                        • To reflect the increased use of electronic communications as opposed to first class mail, particularly between issuers and intermediaries, update requirements to respond or inquire by “first class mail or other equally prompt means” to require only that such responses or inquiries be made promptly.
                        <SU>364</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>364</SU>
                             
                            <E T="03">See</E>
                             proposed rules 14a-13(a)(1), 14a-13(b)(1), 14b-1(b)(1), 14b-2(b)(1)(i) and (ii), 14b-2(b)(4)(i), 14c-7(a)(1), 14c-7(b)(1).
                        </P>
                    </FTNT>
                    <PRTPAGE P="45931"/>
                    <P>We request comment on the proposed amendments to rules 14a-13, 14b-1, 14b-2 and 14c-7:</P>
                    <P>136. Should issuers be required to indicate to record holders the date by which proxy materials or statements of availability of proxy materials should be sent to beneficial owners as part of the broker search inquiry pursuant to rules 14a-13(a)(1)(ii) and 14c-7(a)(1)(ii)?</P>
                    <P>
                        137. Brokers, dealers, and banks currently must forward proxy materials to beneficial owners within five business days of receiving the proxy materials from the issuer or other soliciting person.
                        <SU>365</SU>
                        <FTREF/>
                         We believe technological advancements have led to more efficient coordination among soliciting persons and intermediaries since this deadline was adopted. Is a five-business day period currently needed? Why or why not? Should we shorten this deadline to three business days to facilitate more timely delivery of proxy materials? If not, what is the appropriate amount of time for forwarding proxy materials after receipt of those materials? Considering there could be “piggybacking” of intermediaries (
                        <E T="03">e.g.,</E>
                         the beneficial owner holds shares through a bank that in turn holds those shares through another bank or broker), what is the appropriate amount of time to ensure timely delivery of proxy materials to the ultimate beneficial owner where there are multiple levels of intermediaries?
                    </P>
                    <FTNT>
                        <P>
                            <SU>365</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(b)(2); 17 CFR 240.14b-2(b)(3).
                        </P>
                    </FTNT>
                    <P>
                        138. Brokers, dealers, and banks are currently required to transmit a compiled list of non-objecting beneficial owners within five business days after such list is compiled.
                        <SU>366</SU>
                        <FTREF/>
                         Is a five-business day period needed currently? Why or why not? Should we shorten this deadline to three business days to facilitate more timely communication with these beneficial owners? If not, what should the deadline be?
                    </P>
                    <FTNT>
                        <P>
                            <SU>366</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(b)(3)(ii); 17 CFR 240.14b-2(b)(4)(iii).
                        </P>
                    </FTNT>
                    <P>
                        139. Currently, an intermediary must compile a list of non-objecting beneficial owners as of a date that is no earlier than five business days after the issuer's request is received by the intermediary.
                        <SU>367</SU>
                        <FTREF/>
                         Is five business days needed to compile this list currently? Should this required lead time be shortened to three business days to facilitate more timely communication with these beneficial owners? Why or why not?
                    </P>
                    <FTNT>
                        <P>
                            <SU>367</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-13(b)(2); 17 CFR 240.14b-1(b)(3)(i); 17 CFR 240.14b-2(b)(4)(ii); 17 CFR 240.14c-7(b)(2).
                        </P>
                    </FTNT>
                    <P>
                        140. Currently, banks must execute and return an omnibus proxy to the issuer and furnish corresponding notice to respondent banks within five business days after the record date.
                        <SU>368</SU>
                        <FTREF/>
                         Should this deadline be shortened to three business days to facilitate more timely proxy processing? Why or why not? If not, what is the appropriate deadline?
                    </P>
                    <FTNT>
                        <P>
                            <SU>368</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-2(b)(2).
                        </P>
                    </FTNT>
                    <P>
                        141. Should the deadline for an intermediary to prepare and send a statement of availability be no later than five business days after receiving the information required to be included in the statement from a soliciting person or such later date specified by the soliciting person, as proposed? 
                        <SU>369</SU>
                        <FTREF/>
                         Why or why not? If not, what deadline would be appropriate?
                    </P>
                    <FTNT>
                        <P>
                            <SU>369</SU>
                             
                            <E T="03">See</E>
                             proposed rules 14b-1(d)(1) and 14b-2(d)(1).
                        </P>
                    </FTNT>
                    <P>
                        142. Brokers, dealers, and banks are currently required to request a copy of proxy materials from a soliciting person within three business days after receiving such request from a beneficial owner, and to forward the copy to the requesting beneficial owner within three business days after receipt of the copy from the soliciting person.
                        <SU>370</SU>
                        <FTREF/>
                         Should we shorten the period of time intermediaries have to request and forward proxy materials to two business days to facilitate more timely receipt of copies by beneficial owners? Why or why not? If not, what deadline would be appropriate?
                    </P>
                    <FTNT>
                        <P>
                            <SU>370</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14b-1(d)(4)(i) through (ii); 17 CFR 240.14b-2(d)(4)(i) through (ii).
                        </P>
                    </FTNT>
                    <P>143. Do the provisions of current rule 14b-2 reflect current bank procedures for proxy processing? Would any other changes be helpful to better align the rule requirements with current bank proxy processing procedures or to facilitate electronic delivery?</P>
                    <P>144. Current rule 17a-3(a)(9) generally requires broker-dealers to create and keep current records of the beneficial owners of each cash, margin, and security-based swap account they hold, and whether such beneficial holders object to the disclosure to issuers of their identity, address and securities positions. Broker-dealers use lists compiled pursuant to current rule 17a-3(a)(9) in complying with their obligations to provide beneficial ownership information and to facilitate dissemination of proxy and other materials under rule 14b-1(b). Should we amend current rule 17a-3 or another Commission rule to facilitate electronic delivery by issuers and other soliciting persons to non-objecting beneficial owners? If so, how?</P>
                    <P>(e) Proposed Amendments to Exchange Act Rule 14a-7</P>
                    <P>
                        Soliciting persons other than the issuer rely on the issuer to furnish proxy materials to the issuer's record holders. Rule 14a-7 sets forth the obligation of issuers either to provide a shareholder list to a requesting shareholder or to send the shareholder's proxy materials on the shareholder's behalf. While note 1 to current rule 14a-7 permits the use of “reasonably prompt methods of distribution” other than mailing,
                        <SU>371</SU>
                        <FTREF/>
                         we are proposing to amend rule 14a-7 to change references to “mail” to “send” to clarify that both electronic and paper delivery are acceptable under the rule. The changes we are proposing to rules 14a-1, 14a-3, and 14c-1 would incorporate the definition of “electronic address” under Reg E-Delivery into the definition of “address” in current rule 14a-3 and relocate this amended definition to proposed rules 14a-1 and 14c-1 so that term would apply more broadly to Regulations 14A and 14C.
                        <SU>372</SU>
                        <FTREF/>
                         We are also proposing to amend certain references to “address” in current rule 14a-7 to refer to “all addresses” to clarify that a shareholder list must include all addresses.
                        <SU>373</SU>
                        <FTREF/>
                         As a result, a shareholder list provided under proposed amended rule 14a-7 would include both mailing and electronic addresses of the record holders, if available, and the issuer would include both addresses in a shareholder list delivered to a requesting shareholder. The issuer would be required to identify security holders who receive proxy materials in paper or have requested paper copies of the proxy materials for the upcoming meeting, thereby identifying for a requesting shareholder the preferred method of distribution of the proxy materials for those shareholders.
                        <SU>374</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>371</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-7 (Note 1). Because this note will no longer be necessary if the amendments to rule 14a-7 are adopted as proposed, we are proposing to delete it and add the provisions in Note 2 to rule 14a-7 to a single note to that rule.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>372</SU>
                             
                            <E T="03">See infra</E>
                             footnotes 381 and 382 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>373</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-7(a)(2)(ii)(A) and (B).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>374</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-7(a)(2)(ii)(D).
                        </P>
                    </FTNT>
                    <P>
                        Current rule 14a-7(c) restricts the use of shareholder list information for any purpose other than to solicit a shareholder for the upcoming meeting or action by consent and provides safeguards on the use of any electronic address provided as part of a shareholder list.
                        <SU>375</SU>
                        <FTREF/>
                         We believe these provisions provide adequate protection against the use of electronic addresses by third parties for purposes other than delivery of proxy materials. However, where an issuer cannot provide all of 
                        <PRTPAGE P="45932"/>
                        the information required to be included in a shareholder list, such as electronic addresses, proposed amended rule 14a-7 would clarify that the issuer must then distribute the requesting shareholder's proxy materials.
                        <SU>376</SU>
                        <FTREF/>
                         For example, if the representations made by an issuer when it obtains an electronic address or affirmative consent to electronic delivery from a shareholder prevent it from sharing that electronic address with third parties, the issuer would be obligated to deliver the proxy materials on behalf of the third party.
                    </P>
                    <FTNT>
                        <P>
                            <SU>375</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-7(c)(2)(i) and (ii); 17 CFR 240.14a-7(d).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>376</SU>
                             
                            <E T="03">See</E>
                             proposed note to paragraph (b)(2) of rule 14a-7.
                        </P>
                    </FTNT>
                    <P>
                        We are proposing to amend current rule 14a-7 to remove the requirement to provide the names of shareholders who have made a permanent election to receive paper copies of proxy materials because we are proposing to remove this election from rule 14a-16 as unnecessary if proposed Reg E-Delivery and amendments to rule 14a-16 are adopted as proposed.
                        <SU>377</SU>
                        <FTREF/>
                         In addition, we are proposing to revise certain other requirements in current rule 14a-7(a)(2)(i) to align with the requirements under Reg E-Delivery and the requirements in proposed amended rule 14a-16.
                        <SU>378</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>377</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-7(a)(2)(ii)(D).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>378</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-7(a)(2)(i). For example, the requirement to deliver multiple copies of the notice of internet availability in a single envelope to a shared address if the requesting shareholder furnishes multiple copies for that address would be removed as it is relevant only for paper notices of internet availability, which we propose to eliminate.
                        </P>
                    </FTNT>
                    <P>We request comment on the following:</P>
                    <P>145. Does providing electronic addresses to third-party soliciting persons present additional privacy and other concerns not present with mailing addresses?</P>
                    <P>146. Should issuers always be required to electronically deliver proxy materials on behalf of third parties, rather than doing so at the issuer's election?</P>
                    <P>147. Is there a concern that if proxy materials are delivered electronically by soliciting persons other than the issuer, shareholders may not receive or access those materials due to technical issues or cybersecurity concerns?</P>
                    <P>148. Current rule 14a-7(a)(1) provides that an issuer must notify a requesting shareholder within five business days following its receipt of a request whether it intends to mail such shareholder's soliciting materials or provide such shareholder with a shareholder list that would allow the requesting shareholder to mail its soliciting materials to the issuer's shareholders. Should we shorten this deadline from five business days to three business days to facilitate more timely dissemination of the requesting shareholder's proxy materials? Why or why not?</P>
                    <P>
                        149. Currently, issuers must respond within five business days to a shareholder's request for a list of the names, addresses and security positions of the record holders.
                        <SU>379</SU>
                        <FTREF/>
                         If Reg E-Delivery is adopted, should we increase the amount of time registrants have to respond to a request by a shareholder, because issuers must comply with the additional step of providing both mailing and electronic addresses, if available,? Or should we decrease this time period, given advances in technology and proxy processes?
                    </P>
                    <FTNT>
                        <P>
                            <SU>379</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-7(a)(2)(ii).
                        </P>
                    </FTNT>
                    <P>(f) Proposed Amendments to Implement Conforming Changes (Exchange Act Rules 14a-1, 14a-3, 14a-101, 14c-1, 14c-2, 14c-3, 14c-4, and 14c-101)</P>
                    <P>The amendments we are proposing to incorporate the requirements associated with permitted e-delivery methods and the requirements for website availability of information under Reg E-Delivery into the delivery framework for proxy materials would necessitate conforming changes to certain other rules in Regulations 14A and 14C. To that end, we are proposing to:</P>
                    <P>
                        • Move “address,” as a defined term, from current rule 14a-3(e)(1)(iv) to proposed amended rules 14a-1 and 14c-1 so that term would apply more broadly to Regulations 14A and 14C; 
                        <SU>380</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>380</SU>
                             To comply with the 
                            <E T="03">Federal Register Document Drafting Handbook,</E>
                             we would also revise proposed amended rules 14a-1 and 14c-1 to remove the numbering from the definitions in those rules. 
                            <E T="03">See</E>
                             National Archives and Records Administration, Office of the Federal Register, 
                            <E T="03">Federal Register Document Drafting Handbook,</E>
                             Chapter 8-15 (Oct. 1998 Revision) (“In sections or paragraphs containing only definitions, we recommend that you do not use paragraph designations if you list the terms in alphabetical order.”). We are also proposing to make conforming changes to certain rules that reference definition numbering, which we are proposing to eliminate. 
                            <E T="03">See, e.g.,</E>
                             17 CFR 240.14a-2(b)(9); 17 CFR 240.14a-13(b)(3); 17 CFR 240.14c-7(a) (Note 1); 17 CFR 240.14c-7(b)(3); 17 CFR 240.17a-3(a)(9)(ii). Moreover, we are proposing some non-substantial technical changes to certain other rules. 
                            <E T="03">See, e.g.,</E>
                             paragraph (2) in the definition of “Associate” in 17 CFR 240.14c-1; 17 CFR 240.14c-7(b)(2); 17 CFR 240.14d-5(g)(1). Additionally, we recognize that the current text of 17 CFR 240.14a-1(
                            <E T="03">l</E>
                            ) provides that the terms “solicit” and “solicitation” include certain “proxy voting advice that makes a recommendation to a security holder as to its vote, consent, or authorization on a specific matter for which security holder approval is solicited.” 17 CFR 240.14a-1(
                            <E T="03">l</E>
                            )(1)(iii)(A). The Commission adopted that rule text, as well as additional rule text in 17 CFR 240.14a-1(
                            <E T="03">l</E>
                            )(2)(v) and 17 CFR 240.14a-2(b)(9), in 2020. 
                            <E T="03">See Exemptions From the Proxy Rules for Proxy Voting Advice,</E>
                             Release No. 34-89372 (July 22, 2020) [85 FR 55082 (Sept. 3, 2020)] (“2020 Proxy Voting Advice Release”). On July 1, 2025, the United States Court of Appeals for the District of Columbia affirmed the United States District Court for the District of Columbia's vacatur of the definitional amendment codified at 17 CFR 240.14a-1(l)(1)(iii)(A). 
                            <E T="03">See Institutional S'holder Servs., Inc.</E>
                             v. 
                            <E T="03">SEC,</E>
                             142 F.4th 757, 768 (D.C. Cir. 2025). That vacatur had the legal effect of reverting 17 CFR 240.14a-1(
                            <E T="03">l</E>
                            ) to the form of the rule that existed prior to Nov. 2, 2020, when the current form of the rule became effective. 
                            <E T="03">See</E>
                             2020 Proxy Voting Advice Release. We will address the impact of the Court's vacatur in a subsequent release.
                        </P>
                    </FTNT>
                    <P>
                        • Due to the broader application of “address,” which is currently defined to include electronic mail addresses 
                        <SU>381</SU>
                        <FTREF/>
                         and would be defined to include electronic addresses, as that term is defined in Reg E-Delivery,
                        <SU>382</SU>
                        <FTREF/>
                         revise certain other rules in Regulations 14A and 14C to clarify the “address” referred to in those rules is a “mailing” address; 
                        <SU>383</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>381</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-3(e)(1)(iv).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>382</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-1; proposed rule 14c-1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>383</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-3(e)(1)(ii)(B)(
                            <E T="03">1</E>
                            ) and (2)(ii); proposed rule 14a-3(e)(2)(ii); proposed rule 14a-101, Item 5(b)(1)(i) and (ii) and (ix) and Item 22(a)(3)(i), (b)(Table), (c)(Instruction), (c)(2), (c)(3), and (c)(4).
                        </P>
                    </FTNT>
                    <P>
                        • Revise “mailing address” to be “address” in certain rules to permit the issuer to include an electronic address (in lieu of or in addition to a mailing address) to receive a shareholder's request for separate proxy materials where proxy materials are subject to householding and being delivered to a shared address; 
                        <SU>384</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>384</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-101, Item 23(c); proposed rule 14c-101(c), Item 5(c).
                        </P>
                    </FTNT>
                    <P>
                        • Add defined terms to rule 14a-1 to expressly incorporate certain Reg E-Delivery requirements into proposed rules 14a-16, 14b-1, and 14b-2; 
                        <SU>385</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>385</SU>
                             
                            <E T="03">See supra</E>
                             notes 296 and 349.
                        </P>
                    </FTNT>
                    <P>
                        • Revise the references to “Notice of internet Availability of Proxy Materials” throughout to refer to “statement of availability of proxy materials,” where appropriate, to reflect the statement of availability method of e-delivery under Reg E-Delivery and proposed amended rule 14a-16; 
                        <SU>386</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>386</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-3(e), proposed rule 14a-101, Item 23; proposed rule 14c-2(d); proposed rule 14c-3(c), proposed rule 14c-7(a)(5); proposed rule 14c-101, Item 5.
                        </P>
                    </FTNT>
                    <P>
                        • Remove provisions in current rule 14a-3(a)(3) related to the business combination exclusion in current rule 14a-16(m), which we are proposing to remove because such exclusion is no longer warranted in light of experience with the notice and access delivery model and increased use of electronic communication technologies; 
                        <SU>387</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>387</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-3(a).
                        </P>
                    </FTNT>
                    <P>
                        • Replace the legibility requirement for proxy statements, annual reports, and information statements delivered through an electronic medium in the 
                        <PRTPAGE P="45933"/>
                        current rules 
                        <SU>388</SU>
                        <FTREF/>
                         with the e-delivery format requirements in Reg E-Delivery to make format requirements for electronically delivered documents more consistent; 
                        <SU>389</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>388</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-3(b)(2)(ii); 17 CFR 240.14a-5(d)(2); 17 CFR 240.14c-4(d).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>389</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(2) (providing that direct e-delivery of covered information must be presented in a “widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format”); proposed rules 14a-3(b)(2)(ii), 14a-5(d)(2), and 14c-4(d). We are similarly proposing this conforming change to current rule 14a-5. 
                            <E T="03">See</E>
                             proposed rule 14a-5(d)(2).
                        </P>
                    </FTNT>
                    <P>
                        • Add requirements with respect to the delivery of proxy materials in the householding provisions in proposed amended rule 14a-3(e)(1) to account for e-delivery of a statement of availability, including the requirement that any control/identification number needed to access the form of proxy be included for each shareholder at the shared address to which the statement of availability of proxy materials is householded; 
                        <SU>390</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>390</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-3(e)(1)(i)(E).
                        </P>
                    </FTNT>
                    <P>
                        • Revise the exception from delivery obligations under current rule 14a-3(e)(2) to apply only to paper delivery to a physical mailing address as the exception would appear inapplicable to electronic delivery; 
                        <SU>391</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>391</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-3(e)(2)
                        </P>
                    </FTNT>
                    <P>
                        • Move the current requirement 
                        <SU>392</SU>
                        <FTREF/>
                         to include a unit number for multi-unit buildings to the note to proposed amended rule 14a-3(e)(1)(ii)(B)(4) so the requirement remains in rule 14a-3(e)(1) after “address” becomes a defined term in proposed amended 14a-1; and
                    </P>
                    <FTNT>
                        <P>
                            <SU>392</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-3(e)(1)(iv).
                        </P>
                    </FTNT>
                    <P>
                        • Add an item to rule 14a-101 requiring disclosure of the website address where proxy materials are available.
                        <SU>393</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>393</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-101 (Item 1(d)). The disclosure required by Item 1(d) of Schedule 14A will be required in Schedule 14C pursuant to Item 1 of Schedule 14C, which states that a Schedule 14C must include the information called for by all of the items of Schedule 14A, with limited exceptions, to the extent each item would be applicable to any matter to be acted upon at a shareholder meeting if proxies were to be solicited in connection with the meeting.
                        </P>
                    </FTNT>
                    <P>We request comment on the proposed amendments to implement conforming changes to rules 14a-1, 14a-3, 14a-101, 14c-1, 14c-2, 14c-3, 14c-4, and 14c-101:</P>
                    <P>150. The definition of “address” in current rule 14a-3(e)(iv), which we are proposing to move to rules 14a-1 and 14c-1, includes “facsimile telephone number.” Should this reference to fax numbers be retained or is this technology outdated such that it is no longer helpful to include it as a specific example?</P>
                    <P>151. Current rule 14a-3(a)(3)(ii) provides for circumstances where state law would prevent a proxy statement from being furnished in accordance with rule 14a-16. Because we are unaware of circumstances in which state law would prevent a proxy statement from being furnished in accordance with proposed amended rule 14a-16, we are proposing to delete this provision. Are there circumstances where state law would prevent a proxy statement from being furnished in accordance with proposed amended rule 14a-16 such that we should retain this provision? If so, please detail those circumstances.</P>
                    <P>152. Current rule 14a-3(e)(2) provides an exception to an issuer's requirement to deliver proxy materials if certain deliveries to a shareholder's address have been returned as undeliverable. We are proposing to amend this provision to limit the exception to deliveries to a shareholder's mailing address. Should this exception also apply to deliveries to a shareholder's electronic address? Alternatively, should this exception be eliminated entirely?</P>
                    <P>153. Current rule 14a-3(e) allows the practice of “householding,” whereby a soliciting person can send one copy of proxy materials to multiple shareholders that share an address. Is it beneficial to continue allowing householding for electronic mail addresses as the current rules appear to contemplate? Do circumstances exist where householding for shared email or other electronic addresses occurs? Is allowing householding for electronic addresses impractical or harmful such that householding should be allowed for only physical mailing addresses?</P>
                    <P>
                        154. Should references to “a format readily communicated to investors” be changed in all rules under the Securities Act and the Exchange Act 
                        <SU>394</SU>
                        <FTREF/>
                         to conform with the “widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format” standard used in Reg E-Delivery and our proposed changes to Regulations 14A and 14C?
                    </P>
                    <FTNT>
                        <P>
                            <SU>394</SU>
                             
                            <E T="03">See, e.g.,</E>
                             17 CFR 230.253(d)(2); 17 CFR 230.420(b); 17 CFR 230.481(f); 17 CFR 230.605(c)(2); 17 CFR 240.12b-12; 17 CFR 240.14a-5(d)(2); 17 CFR 240.14c-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Proposed Amendments to Exchange Act Rule 14d-5</HD>
                    <P>
                        Current tender offer rules provide some flexibility in the manner in which tender offer materials are disseminated for both issuer and third-party tender offers.
                        <SU>395</SU>
                        <FTREF/>
                         While these rules expressly provide that bidders may use reasonably prompt methods of distribution other than mailing, we are proposing amendments to rule 14d-5 to clarify that electronic delivery of tender offer materials is an acceptable method of dissemination and to further facilitate electronic delivery of tender offer materials.
                        <SU>396</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>395</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.13e-4(e); 17 CFR 240.14d-4.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>396</SU>
                             We have not proposed changes to the corresponding rule applicable to issuer tender offers (17 CFR 240.13e-4(e)), because we believe the language of that rule is broad enough to encompass electronic delivery of tender offer materials. In addition, we believe that a bidder who is also the issuer has access to stockholder lists and other information about its shareholders to facilitate electronic delivery without additional rule changes.
                        </P>
                    </FTNT>
                    <P>Specifically, we are proposing to amend:</P>
                    <P>
                        • Certain language throughout rule 14d-5 to clarify that the permitted means for disseminating tender offer materials are not limited to mailing or other types of delivery in paper format, by substituting more general terms when describing the means of dissemination; 
                        <SU>397</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>397</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14d-5(a)(4)(ii); proposed rule 14d-5(b); proposed rules 14d-5(b)(2) and (4) through (6); proposed rule 14d-5(f)(3)(iii); proposed rule 14d-5(f)(4)(v). By contrast, rule 13e-4 already contemplates dissemination by mailing “or otherwise furnishing” issuer tender offer materials. 17 CFR 240.13e-4(e)(1)(ii)(A).
                        </P>
                    </FTNT>
                    <P>
                        • Certain provisions in rule 14d-5 to clarify the requirements that are only applicable for the mailing of tender offer materials in paper format; 
                        <SU>398</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>398</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14d-5(a)(4)(ii); proposed rule 14d-5(b)(7); proposed rule 14d-5(g).
                        </P>
                    </FTNT>
                    <P>
                        • The note to rule 14d-5 to confirm that electronic delivery in accordance with section 303.102 of Reg E-Delivery is a reasonably prompt method of dissemination that may be used instead of mailing.
                        <SU>399</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>399</SU>
                             
                            <E T="03">See</E>
                             proposed note to rule 14d-5.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, tender offer materials of third-party bidders can be delivered electronically to the same extent as an issuer's tender offer materials. Existing tender offer rules require an issuer to facilitate the dissemination of a third-party bidder's tender offer materials because the issuer has access to contact information for its shareholders not available to third parties.
                        <SU>400</SU>
                        <FTREF/>
                         This system will continue if Reg E-Delivery is adopted as proposed, but with some proposed changes specifically to facilitate electronic delivery. To that end, we are proposing to revise certain references to “addresses” in current rule 14d-5 to refer to “all addresses” 
                        <SU>401</SU>
                        <FTREF/>
                         and add a 
                        <PRTPAGE P="45934"/>
                        note to current rule 14d-5(c) to provide that for purposes of paragraph (c), the term “address” means any mailing address or electronic address. As a result, any stockholder list or security position listing that an issuer provides to a third-party bidder under rule 14d-5(c) must include all addresses, which would include both mailing and electronic addresses, if available.
                        <SU>402</SU>
                        <FTREF/>
                         Where the issuer cannot provide all of the requisite stockholder list information, the proposed note to current rule 14d-5(c) would require issuers to distribute the third-party bidder's tender offer materials instead of providing the stockholder list.
                        <SU>403</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>400</SU>
                             
                            <E T="03">See</E>
                             17 CFR.14d-5 (requiring the issuer to coordinate dissemination of tender offer materials by providing a stockholder list with contact information for record holders, or by disseminating such materials on behalf of the third-party bidder).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>401</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14d-5(c)(1) and (2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>402</SU>
                             
                            <E T="03">See</E>
                             proposed note to rule 14d-5(c) (providing that the term “address” as used in rule 14d-5(c) means any mailing address, which would include a street address, a post office box, or other similar destination to which paper documents are delivered, facsimile telephone number, or electronic address, as defined in § 303.101 of Reg E-Delivery).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>403</SU>
                             
                            <E T="03">See</E>
                             proposed note to rule 14d-5(c) (providing that if the subject company cannot provide all of the stockholder list information specified in paragraph (c)(1), the subject company shall send the bidder's tender offer materials in accordance with paragraph (b)). We are proposing a substantially similar provision for proxy materials. 
                            <E T="03">See</E>
                             proposed note to paragraph (b)(2) of rule 14a-7.
                        </P>
                    </FTNT>
                    <P>We request comment on the following matters:</P>
                    <P>155. Are the proposed rule changes appropriate to address any changes to the methods of disseminating tender offer materials if Reg E-Delivery is adopted as proposed?</P>
                    <P>156. Are these rule changes needed? Are there additional changes that are necessary or appropriate to facilitate the electronic delivery of tender offer materials?</P>
                    <P>
                        157. Current rule 14d-4(a)(2) 
                        <SU>404</SU>
                        <FTREF/>
                         permits the dissemination of cash tender offers by publication of a summary advertisement in a newspaper or newspapers, where the bidder furnishes the tender offer materials in a reasonably prompt manner to any security holder who requests them.
                        <SU>405</SU>
                        <FTREF/>
                         Given changes in the way security holders access news and other information and that these summary advertisements are not always accessible online (including in a newspaper's digital version), should we amend current rule 14d-4(a)(2) to expand or modify the manner in which tender offer materials may be disseminated pursuant to rule 14d-4(a)(2)? For example, would permitting dissemination by means of a widely-distributed press release instead of a summary advertisement (in addition to furnishing the tender offer materials promptly upon request) be necessary or appropriate to facilitate electronic delivery of tender offer materials?
                    </P>
                    <FTNT>
                        <P>
                            <SU>404</SU>
                             17 CFR 240.14d-4(a)(2).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>405</SU>
                             Current rule 14d-4(d) specifies the types of newspaper or newspapers that may be used in order to adequately disseminate the summary advertisement, as required by rule 14d-4(a)(2). 
                            <E T="03">See</E>
                             17 CFR 240.14d-4(d).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(h) Electronic Delivery of Covered Information by Third-Party Covered Entities</HD>
                    <P>
                        As discussed above, the proposed definition of a “covered entity” would include third parties that are required to deliver covered information to covered recipients who are not their own shareholders, such as bidders in third-party tender offers and dissidents in contested proxy solicitations.
                        <SU>406</SU>
                        <FTREF/>
                         Third-party covered entities' obligation to deliver covered information to covered recipients generally arises in connection with a specific one-time transaction involving the issuer (
                        <E T="03">e.g.,</E>
                         a tender offer or contested election of directors).
                        <SU>407</SU>
                        <FTREF/>
                         As a result, we do not expect that third-party covered entities would seek to implement default electronic delivery systems for the delivery of covered information relating to such transactions.
                        <SU>408</SU>
                        <FTREF/>
                         Following adoption of Reg E-Delivery and proposed amended Regulations 14A and 14C and rule 14d-5, we expect these third parties would be able to deliver covered information electronically to the same extent the issuer itself could do so in connection with a transaction. That is, if a covered recipient has provided the issuer with affirmative consent to electronic delivery or the covered recipient has been defaulted into e-delivery by the issuer in accordance with Reg E-Delivery, the third party would be able to deliver (or have the issuer deliver on its behalf) its covered information to the covered recipient electronically, unless the covered recipient has opted to receive paper for the type of covered information that the third-party covered entity is required to deliver.
                        <SU>409</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>406</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.1
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>407</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-3;17 CFR 240.14d-4.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>408</SU>
                             The discussion in this section relates to third-party covered entities delivering covered information to covered recipients on their own behalf and not intermediaries delivering the third party's covered information to covered recipients that are the intermediary's customers.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>409</SU>
                             
                            <E T="03">See supra</E>
                             section II.D.2
                        </P>
                    </FTNT>
                    <P>
                        The existing proxy and tender offer rules facilitate third parties' ability to use electronic delivery to the same extent the issuer itself is able do so by requiring coordination between issuers and third parties for the delivery of tender offer or proxy materials to the issuers' shareholders.
                        <SU>410</SU>
                        <FTREF/>
                         As a general matter, issuers that are the subject of third-party tender offers or proxy solicitations can elect whether to send the third party's tender offer or proxy materials to their shareholders or provide the third party with a shareholder list that allows the third party to send its materials to the issuer's shareholders.
                        <SU>411</SU>
                        <FTREF/>
                         If the issuer sends its own materials to a shareholder by electronic delivery because the shareholder has provided the issuer with affirmative consent or the shareholder has been defaulted into e-delivery by the issuer in accordance with Reg E-Delivery, we would expect the issuer to send the third party's materials to the shareholder electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>410</SU>
                             
                            <E T="03">See</E>
                             17 CFR 2401.14a-7; 17 CFR 240.14d-5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>411</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-7(a)(2); 17 CFR 240.14d-5(a)(3); 17 CFR 240.14d-5(b); 17 CFR 240.14d-5(c).
                        </P>
                    </FTNT>
                    <P>
                        If the issuer elects to provide the third party with its shareholder list so that the third party can deliver its materials itself, the shareholder list must include, among other things, the names and addresses of the record holders and beneficial owners in the issuer's possession.
                        <SU>412</SU>
                        <FTREF/>
                         As discussed above,
                        <SU>413</SU>
                        <FTREF/>
                         we are proposing to incorporate the definition of “electronic address” under Reg E-Delivery into the definition of “address” in current rule 14a-3 and relocate this amended definition to proposed rule 14a-1 so that term would apply more broadly to Regulation 14A. As a result, a shareholder list provided under proposed amended rule 14a-7 would include electronic addresses of the record holders, if available. If the issuer cannot or will not provide electronic addresses on the shareholders list due to, for example, the terms of any agreement between the issuer and shareholder regarding electronic delivery or shareholder privacy concerns, we would expect the issuer to send the third party's materials to its shareholders. As discussed above,
                        <SU>414</SU>
                        <FTREF/>
                         we are proposing to add a clarifying note to current rule 14a-7(b)(2) and current rule 14d-5(c) to confirm that the issuer cannot elect to provide the third party with a shareholder list if the issuer cannot or will not provide all the information required to be included on the shareholder list.
                        <SU>415</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>412</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-7(a)(2)(ii)(A) through (B); 17 CFR 240.14d-5(c)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>413</SU>
                             
                            <E T="03">See supra</E>
                             section II.F.2.e.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>414</SU>
                             
                            <E T="03">See supra</E>
                             section II.F.2.f.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>415</SU>
                             
                            <E T="03">See</E>
                             proposed note to paragraph (b)(2) of rule 14a-7; proposed note to paragraph (c) of rule 14d-5.
                        </P>
                    </FTNT>
                    <P>We request comment on the electronic delivery of covered information by third-party covered entities:</P>
                    <P>
                        158. When the issuer delivers proxy or tender offer materials on behalf of third parties in accordance with current 
                        <PRTPAGE P="45935"/>
                        rule 14a-7(a)(2)(i) 
                        <SU>416</SU>
                        <FTREF/>
                         or current rule 14d-5(b),
                        <SU>417</SU>
                        <FTREF/>
                         respectively, the existing proxy and tender offer rules do not expressly require issuers to use electronic delivery to the same extent the issuer itself is able to when delivering its own materials. Are third parties currently able to electronically deliver proxy and tender offer materials to shareholders to the same extent the issuer itself can? Why or why not? Should we amend our rules to expressly require issuers delivering proxy or tender offer materials on behalf of third parties to use electronic delivery to the same extent the issuer itself is able to when delivering its own materials? Why or why not?
                    </P>
                    <FTNT>
                        <P>
                            <SU>416</SU>
                             17 CFR 240.14a-7(a)(2)(i).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>417</SU>
                             17 CFR 240.14d-5(b).
                        </P>
                    </FTNT>
                    <P>159. Are there meaningful concerns about shareholders' willingness to receive or access electronically delivered covered information from third parties versus from issuers? For example, if shareholders received covered information from third parties, would they hesitate to access such information due to security or other concerns?</P>
                    <P>160. Are additional rule changes necessary to accommodate or facilitate electronic delivery of covered information by third parties? For example, should we amend the proxy and tender offer rules to eliminate the ability of issuers to elect to provide a shareholder list to third parties and to specifically require issuers to disseminate third parties' materials on behalf of third parties?</P>
                    <P>
                        161. Do the proposed disclosure requirements in Reg E-Delivery 
                        <SU>418</SU>
                        <FTREF/>
                         sufficiently alert shareholders about the possibility of receiving covered information, such as proxy and tender offer materials, electronically from third parties? If not, would additional disclosure or other requirements be helpful?
                    </P>
                    <FTNT>
                        <P>
                            <SU>418</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104(c)(1)(i)(A) (requiring in the initial transition notice a brief description of each type of covered information that will be delivered electronically which must identify which covered information may be delivered by someone other than the covered entity providing the transition notice).
                        </P>
                    </FTNT>
                    <P>
                        162. Do the proposed disclosure requirements in Reg E-Delivery 
                        <SU>419</SU>
                        <FTREF/>
                         sufficiently alert shareholders when covered information is being delivered by (or on behalf of) a third party? If not, would additional disclosure or other requirements be helpful?
                    </P>
                    <FTNT>
                        <P>
                            <SU>419</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(c)(1)(i) (requiring in a statement of availability a prominent statement identifying the covered entity, which would be the third-party covered entity in the circumstances discussed in this section); proposed § 102(c)(2) (requiring the same for direct delivery of covered information).
                        </P>
                    </FTNT>
                    <P>163. Where an issuer delivers covered information through electronic means other than an email or text message, such as a web portal or mobile application, do our proposed rules adequately permit a third party to electronically deliver its covered information in the same manner?</P>
                    <P>
                        164. For going private transactions that are not subject to either the proxy or tender offer rules, would affiliates be able to access required contact information for electronic delivery under current rules,
                        <SU>420</SU>
                        <FTREF/>
                         by virtue of their affiliation with the issuer? Or are additional rule amendments needed to facilitate the exchange of that information?
                    </P>
                    <FTNT>
                        <P>
                            <SU>420</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.13e-3(f)(1)(i).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Supplementing Electronic Delivery of Proxy Materials or Tender Offer Materials With Delivery in Paper Format</HD>
                    <P>When delivering proxy materials or tender offer materials currently, we would expect issuers and third parties to generally use the form of delivery preferred by the shareholders to the extent shareholders have indicated a preference. For example, if the issuer has obtained affirmative consent to electronic delivery of proxy materials or tender offer materials from a record holder, we would expect the issuer to generally deliver the proxy materials or tender offer materials to the record holder electronically. We recognize there are circumstances, however, where an issuer or third party may prefer to deliver such materials in paper format even if the shareholders have indicated a preference to receive or access such materials electronically. For example, where an issuer or third party is soliciting or seeking a response from shareholders within a specific time frame, such as soliciting proxy authority from shareholders to vote their shares at an upcoming shareholder meeting or asking shareholders to tender their shares during an offer period, the issuer or third party may determine that delivering the proxy materials or tender offer materials in paper format would better serve this purpose. While the proposed rules are designed to allow shareholders to receive proxy materials and tender offer materials in the format they prefer, nothing in the proposed rules would prevent an issuer or third party from supplementing the electronic delivery of proxy materials or tender offer materials with delivery of those materials in paper format.</P>
                    <P>We request comment on the ability of soliciting persons to also deliver proxy materials and tender offer materials in paper format following electronic delivery of such materials in accordance with proposed Reg E-Delivery and proposed amendments to Regulations 14A and 14C and rule 14d-5:</P>
                    <P>165. Based on staff conversations with proxy service providers, we understand that notice and access is generally not used by soliciting persons in proxy contests because of lower response rates and expect that soliciting persons may wish to maintain the option to not use e-delivery in these and other circumstances. Should a soliciting person be able to deliver proxy materials in paper format, as described in the release, to shareholders who have consented to e-delivery or are defaulted into e-delivery under Reg E-Delivery? If so, under what circumstances? Should we impose additional requirements or restrictions for soliciting persons that elect to also deliver proxy materials in paper format following e-delivery of the proxy materials in accordance with Reg E-Delivery and proposed amended rule 14a-16? Should soliciting persons be able to deliver proxy materials in paper format without regard to a shareholder's prior consent to e-delivery or a shareholder having been defaulted into e-delivery under Reg E-Delivery?</P>
                    <HD SOURCE="HD2">G. Existing Commission Guidance</HD>
                    <P>We anticipate that Reg E-Delivery, if adopted, would supersede the 1995 Guidance and 1996 Guidance in their entirety, with certain principles from these releases reaffirmed in any release adopting Reg E-Delivery. We anticipate that we would retain the majority of the 2000 Guidance, and only certain sections and examples would be superseded by Reg E-Delivery. We describe in more detail and request comment below.</P>
                    <P>
                        Much of the 1995 Guidance and 1996 Guidance provides a framework for analyzing whether an electronic communication is delivered or transmitted for purposes of the Federal securities laws that is different in some respects from the framework in proposed Reg E-Delivery. The 1995 Guidance and 1996 Guidance are generally based on a three-part analysis—of whether the e-delivery satisfies requirements for notice, access, and evidence to show delivery. For instance, these releases identify the following examples of procedures evidencing satisfaction of the delivery requirements, among others: (1) obtaining informed consent from an investor to receive information through electronic media; and (2) obtaining evidence that an investor actually received information through electronic 
                        <PRTPAGE P="45936"/>
                        media. The 2000 Guidance similarly includes some discussion and examples that involve applications of the concepts of notice, access, and evidence to show delivery.
                    </P>
                    <P>
                        Reg E-Delivery embodies similar general principles of notification and disclosure, but subject to more specific requirements. The main difference is the proposed move from the interpretive framework for evidence to show delivery, to a rules-based framework providing for a default e-delivery approach. Specifically, Reg E-Delivery sets forth conditions for covered entities to deliver covered information to covered recipients electronically without first obtaining covered recipients' affirmative consent.
                        <SU>421</SU>
                        <FTREF/>
                         Reg E-Delivery further establishes specific conditions under which the Commission would consider delivery requirements under the Federal securities laws to have been satisfied by electronic delivery. These conditions reflect our understanding of common e-delivery practices. They also are designed to assist covered recipients in accessing covered information in the format that they prefer, impose specific limits on access to PFI, and provide relevant information about their option to opt out of e-delivery, receive paper copies of covered information upon request, and update one's electronic address (all free of charge), particularly in view of the default e-delivery approach that would be permitted under the proposed rule.
                        <SU>422</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>421</SU>
                             Section II.H 
                            <E T="03">infra</E>
                             addresses scenarios relating to the transition from the E-Delivery Guidance to Reg E-Delivery, making clear that to the extent covered entities have obtained affirmative consent to e-delivery from certain covered recipients in the past in reliance on past guidance, these covered entities may continue e-delivery under Reg E-Delivery for these covered recipients, and no particular transition process is necessary. (Covered entities that elect to rely on Reg E-Delivery and that already have obtained affirmative consent would, nevertheless, be subject to the provisions of Reg E-Delivery addressing general disclosure, delivery methods, right to free paper copies, and website availability). Section II.I also discusses the hypothetical scenario of covered recipients who have provided affirmative consent in the past and then revoke affirmative consent following the adoption of Reg E-Delivery. 
                            <E T="03">See also supra</E>
                             sections II.A and II.B.2, discussing scenarios under which covered entities may choose to continue obtaining consent to e-delivery under Reg E-Delivery from new covered recipients in the future.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>422</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery §§ 303.102(b) through (h), and 303.103.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the discussion and examples in the E-Delivery Guidance that are based on a framework of notice, access, and evidence to show delivery (including the principle that informed consent may provide evidence of delivery) reflect an approach to e-delivery that is distinct in various specific respects from the approach in Reg E-Delivery. The majority of the discussion in the 1995 Guidance and 1996 Guidance involves applications of these concepts.
                        <SU>423</SU>
                        <FTREF/>
                         We therefore anticipate that Reg E-Delivery, if adopted, would supersede these releases in their entirety, with certain principles from these releases reaffirmed in any release adopting Reg E-Delivery as discussed below.
                        <SU>424</SU>
                        <FTREF/>
                         The 2000 Guidance is not as heavily focused on these concepts. Therefore, we anticipate that we would retain the majority of the 2000 Guidance (and only certain sections and examples would be superseded by Reg E-Delivery).
                        <SU>425</SU>
                        <FTREF/>
                         Any retained 2000 Guidance would need to be read and interpreted alongside any later modifying rules or guidance.
                    </P>
                    <FTNT>
                        <P>
                            <SU>423</SU>
                             This includes the following sections and examples of the 1995 Guidance: Section II.B; section II.C; Examples 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, 12, 23, 24, 25, 26, 28, 29, 31, 32, 33, 37, 42, 43, 45, 46, and 47 in section II.D. This also includes the following sections and examples of the 1996 Guidance: section II.A.1; section II.A.2; section II.A.3; section II.B.2; Examples 1, 2, 3, and 5 in section IV.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>424</SU>
                             To the extent a covered entity chooses to obtain consent from covered recipients to use e-delivery under Reg E-Delivery, this would be addressed in the required disclosure requirement under the rule described above in section II.B.2, which addresses an opt-in approach.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>425</SU>
                             Specifically, Reg E-Delivery would supersede the following sections and examples of the 2000 Guidance: section II.A.1 (“Electronic Delivery—Telephonic Consent”); section II.A.2 (“Electronic Delivery—Global Consent”); section II.A.3 (“Electronic Delivery—Use of Portable Document Format”); certain examples in section II.E (“Examples”)—Examples 1, 2, 3, 4, and 5; and section II.D. Section II.D in the 2000 Guidance is framed as a request for comment, and some concepts in section II.D are inconsistent with the proposed Reg E-Delivery approach. This section is also unnecessary to retain because of these inconsistencies with proposed Reg E-Delivery, and because the period for seeking public input has passed. However, this release requests comment on certain of the topics addressed in section II.D (
                            <E T="03">e.g.,</E>
                             section II.D.1 (“Access Equals Delivery,” 
                            <E T="03">see supra</E>
                             section II.A) and section II.D.4 (“Electronic-Only Offerings,” 
                            <E T="03">see supra</E>
                             section II.B.7, particularly, requests for comment on firms with an all-electronic business model)).
                        </P>
                    </FTNT>
                    <P>
                        In addition, we are concerned that certain principles in the E-Delivery Guidance, as discussed in this paragraph, may not result in actual or meaningful delivery of covered information. We have these concerns about consent-based approaches such as those discussed in Examples 42, 43, 45, or 46 in the 1995 Guidance.
                        <SU>426</SU>
                        <FTREF/>
                         These examples rely on approaches where an individual gives consent to be informed via a paper-based notice that updated versions of prospectuses or other information are available online. Where an individual has not provided an electronic address, delivery of paper mail that includes a URL, QR code, or that otherwise informs the individual that information is available online may not result in actual or meaningful delivery of covered information.
                        <SU>427</SU>
                        <FTREF/>
                         Moreover, Example 46 discusses the provision of a notice of availability of a semi-annual fund shareholder report significantly before the report is made available online (
                        <E T="03">e.g.,</E>
                         a fiscal quarter before the information is made available). A notice that is provided multiple months before information is made available online may not result in actual or meaningful delivery of covered information, because a recipient could have misplaced the notice or forgotten about the notice prior to the time the information is made available online.
                        <SU>428</SU>
                        <FTREF/>
                         For these reasons, none of the approaches discussed in Examples 42, 43, 45, or 46 in the 1995 Guidance would provide assurance comparable to paper delivery that the required information will be delivered in a way that is meaningful to the recipient's ability to access the information online.
                    </P>
                    <FTNT>
                        <P>
                            <SU>426</SU>
                             
                            <E T="03">See supra</E>
                             footnote 423.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>427</SU>
                             
                            <E T="03">See supra</E>
                             section II.A; 
                            <E T="03">see also supra</E>
                             section II.F.1 (discussing proposed rescission of rule 30e-3 under the Investment Company Act).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>428</SU>
                             The proposed timing approach provided in Reg E-Delivery, whereby the e-delivery must be delivered no later than the date by which covered information is required to be delivered under the Federal securities laws (and must either be a direct delivery of covered information, or a statement of availability that includes a website address where covered information is available), does not entail these same concerns because e-delivery would not occur in advance of when covered information is actually available. 
                            <E T="03">See supra</E>
                             section II.B.6.
                        </P>
                    </FTNT>
                    <P>We anticipate that, if Reg E-Delivery were adopted, certain principles in the 1995 Guidance and 1996 Guidance that are not based on a framework of the concepts of notice, access, and evidence to show delivery would continue to remain relevant and would be reaffirmed. This would likely include the following principles:</P>
                    <P>
                        (1) 
                        <E T="03">Investors who must receive notice of an update to a preliminary prospectus that is posted online:</E>
                         If a company places a preliminary prospectus on a website and then materially amends the registration statement (also updating the preliminary prospectus on the website) and determines that recirculation of the updated prospectus is required prior to effectiveness, the company must send notice of the update only to those investors who are expected to purchase securities in the offering (or take other measures to deliver the information to those investors). (Reaffirmation of the principles in 1995 Guidance, Example 9)
                    </P>
                    <P>
                        (2) “
                        <E T="03">Envelope theory” of covered information provided through electronic media:</E>
                         Where different pieces of 
                        <PRTPAGE P="45937"/>
                        covered information are delivered together electronically (
                        <E T="03">e.g.,</E>
                         both are included as attachments to the same email and neither is comparatively more burdensome to access), they should be considered delivered together as if they were in the same paper envelope. An example includes an email with a fund's final prospectus and supplemental sales literature included as separate pdf attachments: the fund may send supplemental sales literature in this fashion.
                        <SU>429</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>429</SU>
                             
                            <E T="03">See</E>
                             rule 160 under the Securities Act. Rule 160 exempts from the consumer consent requirements of the E-SIGN Act prospectuses of registered investment companies that are used for the sole purpose of permitting supplemental sales literature to be provided to prospective investors. In adopting this rule, the Commission stated that, consistent with the E-Delivery Guidance, the rule permits a registered investment company to provide its prospectus and supplemental sales literature on its website or by other electronic means without first obtaining investor consent to the electronic format of the prospectus. 
                            <E T="03">See</E>
                             Exemption From section 101(c)(1) of the Electronic Signatures in Global and National Commerce Act for Registered Investment Companies, Securities Act Release No. 7877 (July 27, 2000) [65 FR 47281 (Aug. 2, 2000)].
                        </P>
                    </FTNT>
                    <P>Similarly, where one electronically provided document includes a hyperlink to another electronic document, the hyperlinked document is generally considered delivered together with the first document as if they were in the same paper envelope. An example is a company's sales literature delivered through e-delivery that includes a hyperlink to the website address where the company's final prospectus is available online.</P>
                    <P>
                        Moreover, documents in close proximity on a website are generally considered delivered together as if they were in the same paper envelope. An example is a company that places its final prospectus and supplemental sales literature on its website. Both the sales literature and the prospectus are clearly identified and can be accessed on the same screen. In this example, the prospectus would accompany the sales literature. However, in order for a prospectus to be considered delivered along with the sales literature, the prospectus cannot be significantly more burdensome to access (
                        <E T="03">e.g.,</E>
                         no additional software is necessary to read the prospectus, although the documents may be in different formats).
                    </P>
                    <P>
                        (Reaffirmation of the principles in 1995 Guidance, Examples 14, 15, 34, 35, 38, 39, 40; 1996 Guidance, Example 4. 
                        <E T="03">See also</E>
                         2000 Guidance, Section II.A.4 (“Clarification of the `Envelope Theory' ”))
                    </P>
                    <P>
                        (3) 
                        <E T="03">Evidence of accessing covered information online:</E>
                         Where a company has evidence that an individual has accessed covered information online (
                        <E T="03">e.g.,</E>
                         through downloading, or by entering user credentials), delivery requirements for that covered information are satisfied. (Reaffirmation of the principles in 1995 Guidance, Examples 36, 48 and 49 (extending principles focused on prospectus delivery to the delivery of any covered information))
                    </P>
                    <P>
                        (4) 
                        <E T="03">Implications of delivering a Statement of Additional Information (“SAI”) in paper, where prospectus is delivered via e-delivery:</E>
                         Where a fund places its prospectus on a website and does not also include the SAI on the website (but instead provides a paper copy of the SAI free of charge to any person who requests it), paper delivery of the SAI does not prevent a fund from satisfying its prospectus delivery requirements electronically.
                        <SU>430</SU>
                        <FTREF/>
                         (Reaffirmation of the principles in 1995 Guidance, Example 52)
                    </P>
                    <FTNT>
                        <P>
                            <SU>430</SU>
                             
                            <E T="03">See</E>
                             Form N-1A, General Instruction C.2 and Item 1(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        (5) 
                        <E T="03">Differences in format and content between paper and electronic versions of a prospectus:</E>
                         Where an electronic version of a fund prospectus has the same text as the paper version, but the text appears in a different format (
                        <E T="03">e.g.,</E>
                         certain text is included as a block in the margin of a page of the paper version, but that formatting is modified in the electronic version to enhance online readability), the fund need not make a separate filing under Securities Act rule 497 with respect to the electronic version. The mere difference in format without any difference in text would not qualify the electronic version as a different “form of prospectus” for which filing is required. This principle extends to differences in different electronic versions of a prospectus (
                        <E T="03">e.g.,</E>
                         a mobile-optimized prospectus versus a prospectus that one reads on a personal computer). However, where content differs between the paper and electronic version, both versions should be filed with the Commission as part of the company's registration statement, or separately pursuant to rule 497. (Reaffirmation of the principles in 1996 Guidance, Example 6 (extended also to discuss differences in different electronic versions of a prospectus), Example 7)
                    </P>
                    <P>
                        (6) 
                        <E T="03">Communications from Broker-Dealers' Customers and Investment Advisers' Clients—</E>
                        In addition to requirements to deliver information, the Exchange Act and the Advisers Act provide for broker-dealers and investment advisers to “receive” or “obtain” responses from their customers or clients. For example, Exchange Act rules 8c-1 and 15c2-1 require, under certain circumstances, broker-dealers to obtain a customer's written consent in order to hypothecate securities. Similarly, under the Advisers Act, certain provisions call for clients to consent to a transaction or acknowledge receipt of certain disclosures.
                        <SU>431</SU>
                        <FTREF/>
                         The Commission generally views an electronic communication from a customer to a broker-dealer or from a client to an investment adviser as satisfying the requirements for such written consent or acknowledgement. (Reaffirmation of the principles in 1996 Guidance, Section II.C, regarding communications from customers and clients)
                    </P>
                    <FTNT>
                        <P>
                            <SU>431</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Advisers Act §§ 205(a)(2) and 206(3); 17 CFR 275.206(3)-2(a)(1).
                        </P>
                    </FTNT>
                    <P>
                        There are certain aspects of the 1995 Guidance that we would not reaffirm, if Reg E-Delivery were adopted, because they have been rendered moot or unnecessary by subsequent Commission rules.
                        <SU>432</SU>
                        <FTREF/>
                         These include:
                    </P>
                    <FTNT>
                        <P>
                            <SU>432</SU>
                             Similarly, if Reg E-Delivery were adopted, the Commission anticipates that it would not reaffirm certain aspects of the 1995 Guidance or the 1996 Guidance that seem to be truisms. This includes the following examples in the 1995 Guidance: Examples 17, 18, 19, 21, 22, 27, 41, and 44 in section II.D. This also includes the discussion of the permissibility of using various electronic media to disseminate advertisements for an investment adviser's services or other information that is not subject to a delivery requirement, in the second paragraph of section II.D of the 1996 Guidance.
                        </P>
                    </FTNT>
                    <P>
                        (1) 
                        <E T="03">Filing additional materials included as part of prospectus using electronic media:</E>
                         Example 13 in the 1995 Guidance provides that, when a company delivers a prospectus through electronic media and additional materials are included in the delivery as part of the prospectus (
                        <E T="03">e.g.,</E>
                         a movie illustrating the company's operations), the company would need to file these materials with the Commission as an appendix to the prospectus just as it would have to supplementally provide these materials to the Commission in sales material. This example is now addressed in rule 304(a) of Regulation S-T, and therefore need not additionally be reaffirmed in this release.
                        <SU>433</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>433</SU>
                             
                            <E T="03">See</E>
                             rule 304(a) of Regulation S-T (providing that if a filer includes graphic, image, audio or video material in a document delivered to investors and others that is not reproduced in an electronic filing, the electronically filed version of that document must include a fair and accurate narrative description, tabular representation or transcript of the omitted material).
                        </P>
                    </FTNT>
                    <P>
                        (2) 
                        <E T="03">Preliminary prospectus online linking to a research report.</E>
                         Example 16 in the 1995 Guidance provides that, where a company places a preliminary prospectus online and provides direct access via hyperlink to a broker's research report on the company, the direct and quick access to the research report would be similar to the company 
                        <PRTPAGE P="45938"/>
                        including the paper version of the research report in the same envelope that it is using to mail the paper version of the preliminary prospectus to potential investors. This example is now outdated in light of the Commission's Securities Offering Reform amendments adopted in 2005 (specifically, amendments to rules 137, 138, and 139 under the Securities Act, expanding the circumstances in which offering participants and persons who are not offering participants will have safe harbor exemptions for dissemination of research reports during a registered offering).
                        <SU>434</SU>
                        <FTREF/>
                         Therefore, this example need not additionally be reaffirmed in this release.
                    </P>
                    <FTNT>
                        <P>
                            <SU>434</SU>
                             
                            <E T="03">See</E>
                             Securities Offering Reform Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <P>
                        (3) 
                        <E T="03">Offering materials online in the context of Regulation D offerings:</E>
                         Example 20 in the 1995 Guidance provides that, where a company is selling its common stock in a private placement pursuant to Securities Act rule 506 of Regulation D, and the company places its offering materials on its website, the placing of the offering materials online would not be consistent with the prohibition against general solicitation or advertising in rule 502(c) of Regulation D.
                        <SU>435</SU>
                        <FTREF/>
                         It is unnecessary to reaffirm topics addressing the extent to which the use of internet websites entails general solicitation, as this has been addressed in numerous Commission releases following the publication of the 1995 Guidance.
                        <SU>436</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>435</SU>
                             Subsequent to the 1995 Guidance, Regulation D was amended to permit general solicitation in connection with offerings conducted under Rule 506(c). 
                            <E T="03">See</E>
                             Eliminating the Prohibition Against General Solicitation and General Advertising in Rule 506 and Rule 144A Offerings, Securities Act Release No. 9415 (July 10, 2013) [78 FR 44771 (July 24, 2013)]. Accordingly, this example remains applicable only for offerings conducted under Rule 506(b) of Regulation D.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>436</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets, Securities Act Release No. 10884 (Nov. 2, 2020) [86 FR 3496 (Jan. 14, 2021)] (“The Commission has stated that other uses of publicly available media, such as unrestricted websites, also constitute general solicitation and general advertising.”); Concept Release on Harmonization of Securities Offering Exemptions, Securities Act Release No. 10649 (June 18, 2019) [84 FR 30460 (June 26, 2019)]; 
                            <E T="03">see also</E>
                             2000 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at section II.C.2 (“Online Private Offerings under Regulation D”).
                        </P>
                    </FTNT>
                    <P>
                        (4) 
                        <E T="03">Timing for maintaining fund prospectuses and annual and semi-annual reports online:</E>
                         Example 50 in the 1995 Guidance addresses these timing points, which are now addressed by the principles in proposed Reg E-Delivery, rules 498 and 498A under the Securities Act, and rule 30e-1 under the Investment Company Act.
                    </P>
                    <P>
                        (5) 
                        <E T="03">Hyperlinks and sequencing requirements in a Form N-1A prospectus:</E>
                         Example 51 in the 1995 Guidance discusses these requirements, where a prospectus is transmitted electronically. These requirements are now addressed in Form N-1A and rule 498 under the Securities Act.
                    </P>
                    <P>We request comment on the following:</P>
                    <P>166. If Reg E-Delivery were adopted, is it appropriate that the rule would supersede the 1995 Guidance and 1996 Guidance in their entirety, with certain principles from these releases reaffirmed in any release adopting Reg E-Delivery? Would this be appropriate in light of the fact that much of the 1995 Guidance and 1996 Guidance are based on a framework of notice, access, and evidence to show delivery, and therefore reflect an approach to e-delivery that is distinct from the approach in proposed Reg E-Delivery? Alternatively, should the Commission adopt only the provisions of proposed Reg E-Delivery that provide a framework and requirements for an opt-out default, not the general provisions relating to disclosure, electronic delivery methods, or website availability, and retain the general interpretive framework of the E-Delivery Guidance as it applies to the use of affirmative consent or other evidence of delivery?</P>
                    <P>167. If Reg E-Delivery were adopted, should we generally reaffirm the 2000 Guidance, except for those sections and examples of the 2000 Guidance that involve applications of the concepts of notice, access, and evidence to show delivery? Are there any additional sections that should be retained? For example, would it be helpful to retain section II.A.2 (“Global Consent”), given that covered entities could continue seeking affirmative consent from covered recipients even though they would not be required to do so under the proposed rule? Or would it be helpful to reaffirm the 2000 Guidance in its entirety? Alternatively, should Reg E-Delivery, if adopted, supersede the 2000 Guidance in its entirety, with only certain principles reaffirmed in any release adopting Reg E-Delivery?</P>
                    <P>168. Do commenters agree that the consent-based approaches discussed in Examples 42, 43, 45, or 46 in the 1995 Guidance may not result in actual or meaningful delivery of covered information? Why or why not? Do commenters agree that a notice that is provided multiple months before information is made available online would not result in actual or meaningful delivery of covered information?</P>
                    <P>169. Are there any other aspects of the 1995, 1996, or 2000 Guidance that describe e-delivery practices that may not result in actual or meaningful delivery of covered information?</P>
                    <P>170. If Reg E-Delivery were adopted, should the Commission retain the E-Delivery Guidance releases in their entirety, and permit covered entities to choose whether to comply with Reg E-Delivery or alternatively to reference the earlier E-Delivery Guidance releases when effecting e-delivery to covered recipients? Would such an approach enhance choice or would it be confusing for covered entities and/or covered recipients? Would this be helpful to preserve flexibility for covered entities that develop a method of e-delivery that differs from Reg E-Delivery but results in the required information being delivered?</P>
                    <P>
                        171. If Reg E-Delivery were adopted, should we reaffirm certain principles from the 1995 Guidance and 1996 Guidance that do not involve applications of the concepts of notice, access, and evidence to show delivery? Would this reaffirmation assist practitioners and others who otherwise could be confused about what aspects of the 1995 Guidance and 1996 Guidance continue to apply? Would this reaffirmation be helpful in updating outdated technological concepts in the 1995 Guidance and 1996 Guidance? Alternatively or additionally, should we reaffirm any principles from the E-Delivery Guidance that 
                        <E T="03">do</E>
                         involve applications of the concepts of notice, access, and evidence to show delivery? If so, what principles and why? For example, to the extent that covered entities anticipate continuing to obtain affirmative consent to use e-delivery, would restating any of these principles be helpful? Should any of the principles from the E-Delivery Guidance be incorporated in Reg E-Delivery? For example, should Reg E-Delivery address any of the principles in the above discussion of the “envelope theory” of covered information provided through electronic media, for instance to address the delivery of a fund's prospectus along with supplemental sales literature?
                    </P>
                    <P>172. Do commenters agree with the inclusion and framing of the E-Delivery Guidance principles we would anticipate retaining, as discussed above? Should any of the included principles not be retained? Are there any additional principles from the 1995 Guidance and 1996 Guidance that should be retained?</P>
                    <HD SOURCE="HD2">H. Compliance Period</HD>
                    <P>
                        As discussed above, we anticipate that if Reg E-Delivery were adopted, it would generally supersede the existing 
                        <PRTPAGE P="45939"/>
                        E-Delivery Guidance.
                        <SU>437</SU>
                        <FTREF/>
                         Specifically, we anticipate that Reg E-Delivery would supersede the 1995 Guidance and 1996 Guidance in their entirety, with certain principles from these releases reaffirmed in any release adopting Reg E-Delivery.
                        <SU>438</SU>
                        <FTREF/>
                         We anticipate that we would retain the majority of the 2000 Guidance (and only certain sections and examples would be superseded by Reg E-Delivery). We anticipate providing a two-year interim period running from the rule's effective date (which we propose to be 60 days after publication of any final rule in the 
                        <E T="04">Federal Register</E>
                        ) before rescinding the 1995 Guidance and 1996 Guidance (with certain principles reaffirmed in any release adopting Reg E-Delivery).
                        <SU>439</SU>
                        <FTREF/>
                         Following this, covered entities that wish to be assured that they have satisfied applicable requirements to deliver covered information under the Federal securities laws through the use of e-delivery would have to comply with the requirements of Reg E-Delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>437</SU>
                             
                            <E T="03">See supra</E>
                             section II.G.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>438</SU>
                             
                            <E T="03">See supra</E>
                             footnote 425 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>439</SU>
                             We anticipate rescinding these releases on the date that the Commission would adopt Reg E-Delivery, with the rescission effective two years following Reg E-Delivery's effective date.
                        </P>
                    </FTNT>
                    <P>The two-year interim period would be designed to keep this guidance in place while covered entities are reviewing their practices for compliance with Reg E-Delivery, as well as while covered recipients receiving paper are (as applicable) being moved to default e-delivery, as discussed above in section II.D. The two-year interim period would provide covered entities that are transitioning covered recipients receiving paper to default e-delivery with flexibility regarding when to provide the required initial notice. Also, this period would permit covered entities, if they choose, to take more than 180 days to begin e-delivery of covered information to covered recipients receiving paper (the transition time that the proposed rule specifies following the initial notice), before the rescission of the 1995 Guidance and 1996 Guidance would be effective. In addition, the two-year interim period would give covered entities time to adjust their current e-delivery practices, for example, to develop the required e-delivery disclosures, conform their e-delivery statements of availability (or direct delivery of covered information) to reflect the content that Reg E-Delivery would require, and to ensure that they are prepared to comply with Reg E-Delivery's other requirements. A two-year interim period would provide time for covered entities to review their processes and systems in light of the requirements of Reg E-Delivery and make any necessary updates.</P>
                    <P>We considered a tiered compliance period, with a longer compliance period for small entities. While reliance on Reg E-Delivery is voluntary, we anticipate that covered entities that choose to rely on the rule would review their current e-delivery processes for consistency with the rule's requirements and update those processes as appropriate. Therefore, small entities may benefit from additional time to review and update processes. While covered entities would have some flexibility on when to start relying on proposed Reg E-Delivery, they effectively would be constrained by the period that the E-Delivery Guidance is in place to the extent that they want to use an approach that either the E-Delivery Guidance or Reg E-Delivery provides. Because it would be confusing to rescind the E-Delivery Guidance with respect to certain covered entities but not others, a tiered compliance period for small covered entities would not be workable in the context of proposed Reg E-Delivery. Taking all of this into account, we are proposing a relatively long compliance period (two years) for all covered entities, not just small covered entities.</P>
                    <P>After the publication of Reg E-Delivery as it may be finalized, but before the effective date of any E-Delivery Guidance rescission, a covered entity could rely either on the E-Delivery Guidance or on Reg E-Delivery when using e-delivery to satisfy delivery requirements under the Federal securities laws. To promote regulatory consistency, however, any covered entity that would elect to rely on Reg E-Delivery during this period would only be able to rely on Reg E-Delivery and the principles of the E-Delivery Guidance that the Commission would reaffirm, as discussed above. A covered entity would not, for example, be able to transition covered recipients receiving paper to default e-delivery under Reg E-Delivery without complying with the other requirements of Reg E-Delivery that are not covered under the E-Delivery Guidance (such as the content requirements for statements of availability, the provision of paper copies of covered information at no charge upon request, etc.).</P>
                    <P>
                        Further, a covered entity that received affirmative consent under the E-Delivery Guidance to deliver all covered information by or on behalf of the covered entity electronically to the covered recipient as of the effective date of Reg E-Delivery, if adopted, would not be required to provide disclosure to that covered recipient about the e-delivery of covered information.
                        <SU>440</SU>
                        <FTREF/>
                         That covered recipient already is receiving regulatory communications at the electronic address provided. Nevertheless, that covered entity would be required to comply with all other provisions of Reg E-Delivery to be assured of the delivery safe harbor that the rule would provide.
                        <SU>441</SU>
                        <FTREF/>
                         In addition, a covered recipient who provided affirmative consent under the E-Delivery Guidance may revoke that affirmative consent on or after the effective date of Reg E-Delivery. In that case, the covered recipient would opt out of e-delivery using the processes that the covered entity describes under the requirements in proposed Reg E-Delivery and would be treated like other covered recipients who request paper delivery under Reg E-Delivery.
                        <SU>442</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>440</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b); 
                            <E T="03">see supra</E>
                             section II.B.2. Covered entities that obtain a covered recipient's affirmative consent to e-delivery after the effective date of Reg E-Delivery would, however, have to provide the disclosure of E-Delivery required under § 303.102(b)(ii) before relying on Reg E-Delivery to use e-delivery to deliver covered information to that covered recipient. 
                            <E T="03">See also supra</E>
                             footnote 224.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>441</SU>
                             
                            <E T="03">See supra</E>
                             sections II.B and II.C.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>442</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(f); 
                            <E T="03">see supra</E>
                             section II.B.7.
                        </P>
                    </FTNT>
                    <P>
                        Similarly, we anticipate that following a two-year interim period running from the rule's effective date, covered entities with delivery obligations under Regulations 14A, 14C, and 14D would have to comply with the applicable requirements of the proposed amended rules in Regulations 14A and 14C and proposed amended rule 14d-5, including the provisions of Reg E-Delivery that are incorporated into such amended rules. The two-year interim period would allow covered entities to review their practices for compliance with these proposed amended rules and give covered entities time to adjust their current e-delivery practices for proxy materials to, for example, to develop the required e-delivery disclosures, conform their e-delivery statements of availability of proxy materials (or direct delivery of proxy materials) to reflect the content that the proposed amended rules would require, and to ensure that they are prepared to comply with other requirements in the proposed amended rules. A two-year interim period would provide time for covered entities to review their processes and systems in light of the requirements in the proposed amended rules in Regulations 14A and 14C and proposed amended rule 14d-5 (including the requirements of Reg E-Delivery incorporated into such rules) and make any necessary updates. 
                        <PRTPAGE P="45940"/>
                        In addition, after the publication of Reg E-Delivery and the proposed amended rules in Regulations 14A and 14C as they may be finalized, but before the effective date of any E-Delivery Guidance rescission, when using e-delivery to satisfy delivery requirements under Regulations 14A and 14C, a covered entity could rely either on the current rules in Regulations 14A and 14C and the E-Delivery Guidance or on the proposed amended rules in Regulations 14A and 14C (including the requirements of Reg E-Delivery incorporated into such rules) and the principles of the E-Delivery Guidance that the Commission would reaffirm.
                    </P>
                    <P>We request comment on the proposed interim period:</P>
                    <P>173. Would a two-year interim period provide covered entities that seek to rely on Reg E-Delivery sufficient time to come into compliance with Reg E-Delivery? Should the interim period be shorter or longer? Would a one-year or sixteen-month interim period be beneficial and feasible? Does the E-Delivery Guidance need to remain in place while covered entities are transitioning to Reg E-Delivery? Please explain.</P>
                    <P>
                        174. Would a two-year interim period be sufficient to provide covered entities with delivery obligations under Regulations 14A, 14C, and 14D time to come into compliance with the proposed amended rules in Regulations 14A and 14C and proposed amended rule 14d-5 (including the requirements of Reg E-Delivery incorporated into such rules)? Should the interim period for compliance with these rules be shorter or longer? Please explain. Should the interim period for compliance with the proposed amended rules in Regulations 14A and 14C instead be tied to the timing of shareholder meetings such that compliance is required for any shareholder meeting held after a specific date (
                        <E T="03">e.g.,</E>
                         for any shareholder meeting held after July 31, 2028)?
                    </P>
                    <P>175. Rather than the two-year proposed compliance period, should we adopt tiered compliance periods for small and large covered entities? For example, should we provide two years for small covered entities to continue relying on the E-Delivery Guidance, before the effective date of its rescission, with some shorter period for large covered entities?</P>
                    <P>176. Should Reg E-Delivery explicitly address any scenarios related to the transition from reliance on the E-Delivery Guidance to reliance on Reg E-Delivery? For example, should Reg E-Delivery address scenarios where covered entities have obtained a covered recipient's affirmative consent to e-delivery obtained in reliance on the E-Delivery Guidance Releases? Should Reg E-Delivery explicitly address what the Commission expects if that affirmative consent is revoked by a covered recipient after Reg E-Delivery's effective date?</P>
                    <HD SOURCE="HD1">III. Economic Analysis</HD>
                    <HD SOURCE="HD2">A. Introduction</HD>
                    <P>
                        Paper, printing, and mailing costs associated with the delivery of regulatory disclosures and reports can be significant, and those costs routinely exceed the costs of e-delivery.
                        <SU>443</SU>
                        <FTREF/>
                         Further, since the E-Delivery Guidance releases were published, access to and usage of electronic communications technologies have expanded significantly.
                        <SU>444</SU>
                        <FTREF/>
                         Proposed Reg E-Delivery, if adopted, would be the Commission's primary rule addressing e-delivery. Under proposed Reg E-Delivery, a covered entity would, at its option, be able to use e-delivery as the default delivery method to satisfy its requirements under the Federal securities laws to deliver or transmit covered information to covered recipients. The use of e-delivery under the proposed rule, regardless of whether a covered entity chooses to use electronic or paper delivery as the default delivery method, would be subject to certain conditions on the method, timing, and ability to change delivery methods, as well as requirements for websites on which covered information is available.
                        <SU>445</SU>
                        <FTREF/>
                         Covered entities that comply with the conditions of Reg E-Delivery would be assured that they have satisfied, through the use of e-delivery, applicable requirements to deliver covered information under the Federal securities laws. Also, covered recipients that affirmatively express a preference for delivery in paper format would receive it free of charge.
                    </P>
                    <FTNT>
                        <P>
                            <SU>443</SU>
                             
                            <E T="03">See supra</E>
                             section II.A.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>444</SU>
                             
                            <E T="03">See supra</E>
                             sections I.B and II.A and 
                            <E T="03">infra</E>
                             section III.B.3.b.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>445</SU>
                             
                            <E T="03">See supra</E>
                             section I.D for an overview of the requirements of proposed Reg-E-Delivery.
                        </P>
                    </FTNT>
                    <P>
                        The proposal, if adopted, would generally supersede the current guidance-based e-delivery framework, which effectively defaults investors and other recipients of covered information to deliveries in paper format if no delivery preference is affirmatively expressed. Reg E-Delivery would reduce barriers to the use of e-delivery by replacing the current framework that is based largely on an opt-out e-delivery approach.
                        <SU>446</SU>
                        <FTREF/>
                         The proposed conditions for e-delivery under the proposed rule, which generally reflect our understanding of current common e-delivery practices, are designed to help ensure that information delivered electronically is delivered in a user-friendly format while also protecting PFI and providing a mechanism for covered recipients to change delivery methods.
                    </P>
                    <FTNT>
                        <P>
                            <SU>446</SU>
                             
                            <E T="03">See supra</E>
                             section II.A at text before and accompanying footnote 57; 
                            <E T="03">see also</E>
                             section II.F for a more detailed discussion of the proposal to rescind rule 30e-3, section II.G for a discussion of the anticipated superseding of much of the E-Delivery Guidance by Reg E-Delivery (if adopted), and section I.B for a discussion of survey data on investor preferences.
                        </P>
                    </FTNT>
                    <P>
                        The Commission also addresses the application of the E-SIGN Act with respect to proposed Reg E-Delivery. To the extent that any covered information delivered under proposed Reg E-Delivery would have been subject to the consumer consent requirements of the E-SIGN Act, such covered information would be exempt from these requirements.
                        <SU>447</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>447</SU>
                             
                            <E T="03">See supra</E>
                             section II.E.
                        </P>
                    </FTNT>
                    <P>We are mindful of the costs imposed by, and the benefits obtained from, our rules. Section 2(b) of the Securities Act, section 3(f) of the Exchange Act, section 2(c) of the Investment Company Act and section 202(c) of the Advisers Act state that when the Commission is engaging in rulemaking under such titles and is required to consider or determine whether the action is necessary or appropriate in (or, with respect to the Investment Company Act, consistent with) the public interest, the Commission shall consider whether the action will promote efficiency, competition, and capital formation, in addition to the protection of investors. Further, section 23(a)(2) of the Exchange Act requires the Commission to consider, among other matters, the impact such rules will have on competition and states that the Commission shall not adopt any rule that will impose a burden on competition not necessary or appropriate in furtherance of the purposes of the Exchange Act. The following analysis considers, in detail, the potential economic effects that may result from the proposed rule, including the benefits and costs to investors and other market participants as well as the broader implications of the proposed rule for efficiency, competition, and capital formation.</P>
                    <P>
                        Where possible, we have attempted to quantify the benefits, costs, and effects on efficiency, competition, and capital formation expected to result from the proposed rule. We are providing both a qualitative assessment and quantified estimates of the potential economic 
                        <PRTPAGE P="45941"/>
                        effects of the proposed rule (and related proposed amendments) where feasible. As explained in more detail below, because we do not have, and in certain cases do not believe we can reasonably obtain, reliable quantitative evidence to use as a basis for our analysis, we are unable to quantify certain economic effects.
                    </P>
                    <HD SOURCE="HD2">B. Baseline and Affected Parties</HD>
                    <P>
                        The baseline against which the benefits, costs, and the impact on efficiency, competition, and capital formation of the proposed rule and the proposed amendments to existing Commission rules to facilitate the proposed e-delivery framework are measured consists of the current state of the securities markets and the current regulatory framework with respect to e-delivery of covered information.
                        <SU>448</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>448</SU>
                             
                            <E T="03">See, e.g., Nasdaq Stock Mkt. LLC</E>
                             v. 
                            <E T="03">SEC,</E>
                             34 F.4th 1105, 1111-14 (D.C. Cir. 2022). This approach also follows SEC staff guidance on economic analysis for rulemaking.
                            <E T="03">See</E>
                             SEC Staff, Current Guidance on Economic Analysis in SEC Rulemakings (Mar. 16, 2012), 
                            <E T="03">available at https://www.sec.gov/divisions/riskfin/rsfi_guidance_econ_analy_secrulemaking.pdf</E>
                             (“The economic consequences of proposed rules (potential costs and benefits including effects on efficiency, competition, and capital formation) should be measured against a baseline, which is the best assessment of how the world would look in the absence of the proposed action.”); 
                            <E T="03">see also id.</E>
                             at 7 (“The baseline includes both the economic attributes of the relevant market and the existing regulatory structure. . .”).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">1. Guidance and Existing Regulations Governing Use of Electronic Media</HD>
                    <P>
                        The Federal securities laws generally do not prescribe paper as the sole means of delivery of regulatory documents; however, required regulatory disclosures and reports have generally been delivered in paper unless the person with the right to receive these disclosures and reports has elected otherwise.
                        <SU>449</SU>
                        <FTREF/>
                         The Commission has expressed interpretive views on the use of e-delivery in the E-Delivery Guidance 
                        <SU>450</SU>
                        <FTREF/>
                         and, over time, many investors have increasingly expressed a preference for e-delivery of financial and other regulatory disclosures.
                    </P>
                    <FTNT>
                        <P>
                            <SU>449</SU>
                             
                            <E T="03">See supra</E>
                             footnote 8 and accompanying text; 
                            <E T="03">see also</E>
                             requests for comment 
                            <E T="03">supra</E>
                             section II.B.7 (it is our understanding that there may be certain firms that currently reserve the right, when a person establishes a customer or client relationship with such firm or otherwise through contract, to restrict or close the account of a person who requests paper).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>450</SU>
                             
                            <E T="03">See</E>
                             E-Delivery Guidance, 
                            <E T="03">supra</E>
                             footnote 3.
                        </P>
                    </FTNT>
                    <P>
                        The E-Delivery Guidance is largely based on an “opt in” approach to e-delivery and provides an interpretive framework for issuers and certain other market intermediaries to rely on to transmit disclosure materials and other required information electronically in lieu of paper. In the E-Delivery Guidance, the Commission discussed three main elements to consider in satisfying delivery requirements electronically—notice, access and evidence of delivery—and much of the E-Delivery Guidance includes discussions and examples of how these elements may be satisfied.
                        <SU>451</SU>
                        <FTREF/>
                         For instance, the 1995 Guidance and 1996 Guidance provide a framework for analyzing whether an electronic communication has been delivered or transmitted under the Federal securities laws and provide a non-exhaustive and non-exclusive list of examples of procedures that would satisfy the delivery requirements, including, for example: (1) obtaining informed consent from an investor to receive information through electronic media; and (2) obtaining evidence that an investor actually received information through electronic media.
                        <SU>452</SU>
                        <FTREF/>
                         The 2000 Guidance similarly includes some discussion and examples that involve applications of the concepts of notice, access, and evidence to show delivery, including through obtaining informed consent from the investor.
                        <SU>453</SU>
                        <FTREF/>
                         Issuers and other market intermediaries acting consistently with the E-Delivery Guidance typically obtain an investor's informed consent to e-delivery to satisfy the “evidence of delivery” condition.
                        <SU>454</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>451</SU>
                             
                            <E T="03">See supra</E>
                             footnote 423 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>452</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance and 1996 Guidance 
                            <E T="03">supra</E>
                             footnote 3; 
                            <E T="03">see also supra</E>
                             section II.G. In addition to the examples discussed above, the E-Delivery Guidance also includes the following as examples of procedures evidencing satisfaction of the delivery requirements: (1) disseminating information through certain facsimile methods; (2) an investor's accessing a document with hyperlinking to a required document and (3) using forms or other material available only by accessing the information.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>453</SU>
                             
                            <E T="03">See</E>
                             2000 Guidance, 
                            <E T="03">supra</E>
                             footnote 3.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>454</SU>
                             
                            <E T="03">See</E>
                             E-Delivery Guidance, 
                            <E T="03">supra</E>
                             footnote 3; 
                            <E T="03">see also</E>
                             Tailored Shareholders Report Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <P>
                        E-delivery practices under the E-Delivery Guidance vary. In terms of the format of e-delivery, we understand that it is common for investors and other recipients of information who have elected to receive e-delivery typically to receive an email or other electronic notice that contains a link to where the materials are available online or an email that includes the materials as attachments, similar to the notice of availability approach and direct delivery approaches discussed in sections II.B.3 and II.B.4 above. The E-Delivery Guidance includes no generally-applicable requirements for content, format, or manner of delivery.
                        <SU>455</SU>
                        <FTREF/>
                         The timing of e-delivery generally occurs within the same time frame as investors and other recipients of covered information would receive paper documents.
                        <SU>456</SU>
                        <FTREF/>
                         While the E-Delivery Guidance does not include specific requirements for PFI, it does state that information specific to personal financial matters requires intermediaries to take reasonable precautions to ensure the integrity, confidentiality, and security of that information.
                        <SU>457</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>455</SU>
                             
                            <E T="03">See contra supra</E>
                             sections II.B.3, II.B.4, and II.B.6 (discussing content, format, and manner of delivery requirements under proposed Reg E-Delivery). 
                            <E T="03">But see</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at text following n.22 (stating that, as is the case with paper delivery, there should be an opportunity to retain a permanent record of the electronically delivered information); 1995 Guidance at text accompanying n.14 (paper-based requirements relating to font size, bold-face type, red ink, graphics, and mailing may be modified as appropriate for documents delivered in electronic format).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>456</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at text accompanying n.11 (stating that the release addresses only the procedural aspects under the Federal securities laws of electronic delivery, and does not affect the rights and responsibilities of any party under the Federal securities laws); 
                            <E T="03">see also id.</E>
                             at text accompanying n.26 (stating that if disclosure is made available by posting it on the internet, making it available through online services, or making it available by similar means, the document should be accessible for as long as the delivery requirement applies); 
                            <E T="03">see also supra</E>
                             section II.B.6.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>457</SU>
                             
                            <E T="03">See</E>
                             1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3; 
                            <E T="03">see also supra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <P>
                        The E-Delivery Guidance addresses the right to revoke consent of e-delivery and receive paper, and to request paper copies of electronically delivered information.
                        <SU>458</SU>
                        <FTREF/>
                         While we understand that many covered entities provide free paper copies of electronically delivered covered information, the E-Delivery Guidance does not directly address the provision of free paper copies, in the context of investors and others who affirmatively elect e-delivery (although it does discuss charges associated with electronic delivery, and the provision of free paper, in certain specific contexts).
                        <SU>459</SU>
                        <FTREF/>
                         Because the E-Delivery 
                        <PRTPAGE P="45942"/>
                        Guidance is based largely on an informed consent model of e-delivery, it also does not address other aspects of proposed Reg E-Delivery that are designed to provide protections to covered recipients in light of the proposal to permit a default e-delivery method, such as the ability to update one's electronic address (and choice of type of electronic address) for free,
                        <SU>460</SU>
                        <FTREF/>
                         and the proposed disclosure and notice requirements associated with the use of e-delivery.
                        <SU>461</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>458</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at text accompanying n.27 (stating the Commission believes that, as a matter of policy, where a person has a right to receive a document under the Federal securities laws and chooses to receive it electronically, that person should be provided with a paper version of the document if any consent to receive documents electronically were revoked or the person specifically requests a paper copy (regardless of whether any previously provided consent was revoked)).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>459</SU>
                             
                            <E T="03">See, e.g.,</E>
                             1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.23 and accompanying text (in discussing the provision of consent to e-delivery, stating that the broker-dealer, transfer agent, or investment adviser should inform the customer that there may be potential costs associated with electronic delivery, such as on-line charges), and at n.57 (discussing charges associated with obtaining paper versions of investment adviser written disclosure statements, or 
                            <PRTPAGE/>
                            “brochures,” under Advisers Act rule 204-3); 
                            <E T="03">see also</E>
                             2000 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at Example 5 (discussing the provision of free PDF viewing software and the use of a toll-free telephone number to request paper copies); 
                            <E T="03">see also</E>
                             Brown &amp; Wood, SEC Staff No-Action Letter (Feb. 17, 1995) (providing a staff no-action position regarding conditions in order for a prospectus to be considered delivered electronically, including delivery of a paper copy upon request without charge); 
                            <E T="03">see also supra</E>
                             section II.B.7. The E-Delivery Guidance also discusses procedures that would likely be viewed as “unduly burdensome” in the context of determining whether intended recipients can effectively access the information provided. 
                            <E T="03">See</E>
                             1995 Guidance at text accompanying n.24. Certain rules under the Federal securities laws specifically provide for the delivery of free paper copies (
                            <E T="03">see, e.g.,</E>
                             rule 14a-16 under the Exchange Act; rule 30e-1 under the Investment Company Act). 
                            <E T="03">But see</E>
                             section 101(c) of the E-SIGN (addressing the possibility of fees being charged for paper).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>460</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.8.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>461</SU>
                             
                            <E T="03">See supra</E>
                             sections II.B.2, II.D.2.
                        </P>
                    </FTNT>
                    <P>
                        There are no specific requirements in the E-Delivery Guidance for policies and procedures reasonably designed to identify and remediate e-delivery failures.
                        <SU>462</SU>
                        <FTREF/>
                         There are also no specific requirements in the E-Delivery Guidance for policies and procedures designed to ensure website availability of required information, or specific requirements for presentation of covered information on a website.
                        <SU>463</SU>
                        <FTREF/>
                         However, the E-Delivery Guidance states that an electronic medium would not provide an adequate means for the delivery of required disclosure, and thus not serve the statutory purposes, if the medium does not permit effective communication to investors or is practically unavailable.
                        <SU>464</SU>
                        <FTREF/>
                         Similarly, the E-Delivery Guidance states that issuers and other entities providing e-delivery should have reason to believe that the electronic means they select will result in the satisfaction of the delivery requirements, and should consider the need to establish procedures to ensure that these delivery obligations are met.
                        <SU>465</SU>
                        <FTREF/>
                         Therefore, we anticipate that covered entities using e-delivery under the E-Delivery Guidance have generally developed processes to identify e-delivery failures and website availability failures. Our understanding is that covered entities' practices with respect to website presentation of covered information are varied.
                        <SU>466</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>462</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.9.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>463</SU>
                             
                            <E T="03">See supra</E>
                             section II.C. The presentation of covered information on a website is generally addressed through the discussion in the E-Delivery Guidance about the use of electronic media that are so burdensome that intended recipients cannot effectively access the information provided. 
                            <E T="03">See, e.g.,</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at n.24 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>464</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance, 
                            <E T="03">supra</E>
                             footnote 3, at text accompanying n.20; 
                            <E T="03">see also id.</E>
                             at text accompanying nn.21-22 (stating that the Commission would view information distributed through electronic means as satisfying the delivery or transmission requirements of the Federal securities laws if such distribution results in the delivery to the intended recipients of substantially equivalent information as these recipients would have had if the information were delivered to them in paper form).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>465</SU>
                             
                            <E T="03">See</E>
                             1995 Guidance and 1996 Guidance, 
                            <E T="03">supra</E>
                             footnote 3.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>466</SU>
                             
                            <E T="03">See, e.g., supra</E>
                             footnote 141 and accompanying text; 
                            <E T="03">see also, e.g.,</E>
                             ADI 2025-15, website Posting Requirements, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/about/divisions-offices/division-investment-management/accounting-disclosure-information/adi-2025-15-website-posting-requirements</E>
                            .
                        </P>
                    </FTNT>
                    <P>
                        Since the publication of the E-Delivery Guidance, electronic communications methods have evolved with advances in technology and the increased population of investors and others electing to receive financial documents and other regulatory materials electronically.
                        <SU>467</SU>
                        <FTREF/>
                         The regulatory framework has also evolved and, since the publication of the E-Delivery Guidance, the Commission and other U.S. regulators 
                        <SU>468</SU>
                        <FTREF/>
                         have increasingly taken action to broaden both the scope of permissible electronic communications and to transition out of a regulatory framework in which paper is considered the default delivery method.
                    </P>
                    <FTNT>
                        <P>
                            <SU>467</SU>
                             
                            <E T="03">See supra</E>
                             footnote 25 and accompanying text; 
                            <E T="03">see also supra</E>
                             section I.B for a more detailed discussion regarding advancements in telecommunications capability and changes in e-delivery preference.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>468</SU>
                             
                            <E T="03">See supra</E>
                             footnote 46 and accompanying text (discussing that some SROs have also taken steps to permit disclosure through electronic media and shift from a framework that looks to paper as a default delivery method).
                        </P>
                    </FTNT>
                    <P>
                        Over the past decades, the Commission has adopted rules that entail disclosure approaches involving electronic media. Among other rules, as described in more detail in section I.A and section II.F, these included a string of amendments to the proxy rules under the Exchange Act, beginning in 2007 with the E-Proxy Adopting Release 
                        <SU>469</SU>
                        <FTREF/>
                         and the Shareholder Choice Regarding Proxy Materials Adopting Release 
                        <SU>470</SU>
                        <FTREF/>
                         and continuing in 2010 with the Amendments to Rules Requiring internet Availability of Proxy Materials Adopting Release.
                        <SU>471</SU>
                        <FTREF/>
                         In each case, an issuer or other soliciting person can satisfy its obligation to furnish proxy materials under the current proxy rules to shareholders by posting its proxy materials on a website and sending the notice of internet availability or providing a full set of proxy materials to record holders.
                        <SU>472</SU>
                        <FTREF/>
                         In addition, under the current proxy rules, issuers are required to make copies of the proxy materials available to shareholders on request, at no charge to the shareholders.
                        <SU>473</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>469</SU>
                             
                            <E T="03">See</E>
                             E-Proxy Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>470</SU>
                             
                            <E T="03">See also</E>
                             Shareholder Choice Adopting Release, 
                            <E T="03">supra</E>
                             footnote 272.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>471</SU>
                             
                            <E T="03">See</E>
                             Amendments Adopting Release, 
                            <E T="03">supra</E>
                             footnote 272.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>472</SU>
                             
                            <E T="03">See</E>
                             rule 14a-16; 
                            <E T="03">see also supra</E>
                             footnote 276.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>473</SU>
                             17 CFR 240.14a-16(j)(1).
                        </P>
                    </FTNT>
                    <P>
                        Commission rules that involve the use of electronic media to deliver regulatory information also include rule 30e-3 under the Investment Company Act, which the Commission adopted in 2018.
                        <SU>474</SU>
                        <FTREF/>
                         This rule provides certain registered investment companies with an optional method to satisfy their obligations to transmit shareholder reports by making such reports and other materials accessible online, free of charge, at a website address specified in a notice to shareholders.
                        <SU>475</SU>
                        <FTREF/>
                         Investment companies that choose to rely on the rule are required to make their shareholder reports available online and to provide shareholders with paper notices of the website availability of the shareholder reports. The rule was designed to accommodate the preferences of all investors regarding the means of communications—whether they wished to receive reports in paper or electronically, or simply to be notified that the reports are available online.
                        <SU>476</SU>
                        <FTREF/>
                         In 2022, the Commission adopted rules to narrow the scope of rule 30e-3 such that open-end funds could no longer rely on the rule to satisfy their shareholder report transmission obligations.
                        <SU>477</SU>
                        <FTREF/>
                         Under this narrower scope, only filers of Form N-2 (registered closed-end management companies and business development companies) and Form N-3 (managed 
                        <PRTPAGE P="45943"/>
                        insurance company separate accounts) that have shareholder report transmission obligations under Investment Company Act rule 30e-1 may choose to rely on rule 30e-3.
                    </P>
                    <FTNT>
                        <P>
                            <SU>474</SU>
                             
                            <E T="03">See</E>
                             Rule 30e-3 Adopting Release, 
                            <E T="03">supra</E>
                             footnote 213. In addition, Securities Act rule 172 provides an “access equals delivery” model for final prospectus delivery obligations for certain offerings. Under this rule, subject to certain exclusions and conditions, final prospectus delivery obligations under section 5(b)(2) of the Securities Act are deemed satisfied through the filing of the final prospectus with the Commission. 
                            <E T="03">See</E>
                             Securities Offering Reform Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13; 
                            <E T="03">see also supra</E>
                             section II.F.1 for a more detailed discussion of rule 30e-3.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>475</SU>
                             
                            <E T="03">See</E>
                             Rule 30e-3 Adopting Release, 
                            <E T="03">supra</E>
                             footnote 213.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>476</SU>
                             
                            <E T="03">See id.</E>
                             at text following n.17.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>477</SU>
                             
                            <E T="03">See</E>
                             Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">2. Affected Parties</HD>
                    <P>
                        The proposed rule would affect the delivery by covered entities of covered information to covered recipients. Below we present baseline statistics on the covered entities, which would include any person required to deliver covered information to a covered recipient under the Federal securities laws—including registered investment advisers, regulated investment companies, registered broker-dealers, transfer agents, corporate issuers, indenture trustees and obligors with delivery obligations under the Trust Indenture Act, third parties that are required to deliver covered information to covered recipients who are not their own shareholders,
                        <SU>478</SU>
                        <FTREF/>
                         municipal securities dealers, security-based swap dealers (“SBSDs”) and major security-based swap participants (“MSBSPs”), security-based swap data repositories (“SBSDRs”), security-based swap execution facilities (“SBSEFs”),
                        <SU>479</SU>
                        <FTREF/>
                         and funding portals. For each covered entity, we also provide available baseline statistics on covered recipients that may receive covered information from the entity under the proposed rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>478</SU>
                             
                            <E T="03">See</E>
                             section II.B.1 for a description of covered entities and covered recipients under the proposed rule.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>479</SU>
                             In this release, SBSDs, MSBPs, SBSDRs and SBSEFs are collectively referred to as the “SBS Entities.”
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Registered Investment Advisers</HD>
                    <P>
                        Registered investment advisers provide a variety of services to their clients, including financial planning advice, portfolio management, and pension consulting.
                        <SU>480</SU>
                        <FTREF/>
                         These advisers are required to deliver information to their clients pursuant to Federal securities laws that would be covered by the proposed rule. This information primarily includes firm brochures and brochure supplements,
                        <SU>481</SU>
                        <FTREF/>
                         client relationship summaries,
                        <SU>482</SU>
                        <FTREF/>
                         privacy notices,
                        <SU>483</SU>
                        <FTREF/>
                         data breach notices,
                        <SU>484</SU>
                        <FTREF/>
                         and quarterly statements.
                        <SU>485</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>480</SU>
                             
                            <E T="03">See</E>
                             Form ADV, Item G.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>481</SU>
                             17 CFR 275.204-3.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>482</SU>
                             17 CFR 275.204-5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>483</SU>
                             17 CFR 248.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>484</SU>
                             17 CFR 248.3.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>485</SU>
                             17 CFR 270.3a-4.
                        </P>
                    </FTNT>
                    <P>
                        As of December 31, 2025, there were 16,442 investment advisers registered with the Commission with a total of more than 65 million clients and $177 trillion in assets under management.
                        <SU>486</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>486</SU>
                             Form ADV data for the reporting period ending December 2025 with filings received through March 31, 2026. The number of clients is based on Item 5.D(a-n) and Item 5.F(2)(c).
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="209">
                        <GID>EP21JY26.005</GID>
                    </GPH>
                    <PRTPAGE P="45944"/>
                    <P>
                        Figure 1 shows the cumulative distribution of the number of clients (all types) across investment advisers registered with the Commission as of December 31, 2025. The distribution is right-skewed, with a small number of advisers serving large numbers of clients: 16 advisers reported more than one million clients, while approximately 94% of advisers reported fewer than 2,000 clients. The median adviser reported 98 clients.
                        <SU>487</SU>
                        <FTREF/>
                         For comparison, the figure includes a log-normal reference curve, which illustrates how the observed distribution departs from a symmetric benchmark.
                    </P>
                    <FTNT>
                        <P>
                            <SU>487</SU>
                             Form ADV, Items 5D(a). 
                            <E T="03">See supra</E>
                             footnote 486.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(b) Regulated Investment Companies</HD>
                    <P>
                        The regulated investment companies that would be permitted to rely on the proposed rule would include registered open-end and closed-end funds, business development companies (“BDCs”), and unit investment trusts (“UITs”). The primary covered information that regulated investment companies are required to deliver to shareholders pursuant to the Federal securities laws includes: prospectuses/summary prospectuses, shareholder reports, proxy voting materials, and privacy notices. As of December 31, 2025,
                        <SU>488</SU>
                        <FTREF/>
                         there were 14,296 regulated investment companies, including 12,710 open-end management investment companies,
                        <SU>489</SU>
                        <FTREF/>
                         707 closed-end management investment companies,
                        <SU>490</SU>
                        <FTREF/>
                         693 UITs,
                        <SU>491</SU>
                        <FTREF/>
                         15 insurance company separate accounts that are management investment companies offering variable annuities or variable life insurance contracts,
                        <SU>492</SU>
                         and 171 BDCs.
                        <SU>493</SU>
                         We do not have direct access to data on the number of fund shareholders that would be covered by the proposed rule. One industry study, however, estimates that funds delivered covered information to 544.3 million accounts through 272.2 million physical mailings in 2025.
                        <SU>494</SU>
                         According to a service provider, funds in that year provided 290 million deliveries of fund reports and annual prospectuses and, as a percentage of all positions held, 15% of fund reports and 7% of prospectuses were sent by physical mail. Regarding the extent to which funds use an intermediary to deliver information, one industry study estimates that between 67% and 85% of fund mailings of proxy voting materials, shareholder reports and prospectuses are intermediated.
                        <SU>495</SU>
                         Another industry report estimates that, in 2025, 73% of mutual fund-owning households held mutual funds through employer-sponsored retirement plans and 72% owned mutual funds outside such plans, which purchased funds through both investment professionals and the direct market channel.
                        <SU>496</SU>
                         The same report estimates that in 2025, almost half (49%) of households owning mutual funds held funds purchased through an investment professional, and 27% owned funds purchased through the direct market channel.
                        <SU>497</SU>
                         As of December 31, 2025, approximately 75 million households received covered information from regulated investment companies.
                        <SU>498</SU>
                    </P>
                    <FTNT>
                        <P>
                            <SU>488</SU>
                             The number of registered investment companies (excluding BDCs) was based on Form N-CEN data for the reporting period ending December 2025 with filings received through March 31, 2026.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>489</SU>
                             Form N-1A filers; includes all open-end funds, including ETFs registered on Form N-1A.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>490</SU>
                             Form N-2 filers not classified as BDCs.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>491</SU>
                             The number of UITs includes Form N-4, N-6, N-8B-2, and S-6 filers.
                        </P>
                        <P>
                            <SU>492</SU>
                             Form N-3 filers.
                        </P>
                        <P>
                            <SU>493</SU>
                             The number of BDCs was based on Form 10-K filings and related amendments in calendar year 2025.
                        </P>
                        <P>
                            <SU>494</SU>
                             
                            <E T="03">See</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, at Appendix B, computed as sum of the entries in Table 1 except account statements, tax documents, and trade confirmations.
                        </P>
                        <P>
                            <SU>495</SU>
                             
                            <E T="03">See</E>
                             ICI survey, 
                            <E T="03">supra</E>
                             footnote 25, at Appendix B.
                        </P>
                        <P>
                            <SU>496</SU>
                             
                            <E T="03">See</E>
                             ICI, 2026 Investment Company Fact Book: A Review of Trends and Activities in the Investment Company Industry, at 86, 
                            <E T="03">available at https://www.ici.org/system/files/2026-04/2026-factbook.pdf.</E>
                        </P>
                        <P>
                            <SU>497</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                        <P>
                            <SU>498</SU>
                             56% of 134.8 million households (in 2025) = 75 million households owning funds. 
                            <E T="03">See id.</E>
                             at 79. The source for the total number of households is the U.S. Census Bureau via FRED®, 
                            <E T="03">available at https://fred.stlouisfed.org/series/TTLHH.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(c) Registered Broker-Dealers</HD>
                    <P>
                        Brokers,
                        <SU>499</SU>
                        <FTREF/>
                         as well as dealers 
                        <SU>500</SU>
                        <FTREF/>
                         would be permitted to rely on the proposed rule.
                        <SU>501</SU>
                        <FTREF/>
                         In the market for broker-dealer services, a relatively small set of large- and medium-sized broker-dealers accounts for a significant share of total assets while smaller broker-dealers compete in niche or regional segments of the market.
                        <SU>502</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>499</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78c(a)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>500</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78c(a)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>501</SU>
                             This would include government securities brokers and government securities dealers registered with the Commission under the Exchange Act. As noted above, this proposal does not address any obligations of 15C firms pursuant to rules promulgated by Treasury under the GSA. 
                            <E T="03">See supra</E>
                             footnote 85. There are currently no 15C firms, but they would be included as covered entities if any 15C firms are registered in the future.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>502</SU>
                             
                            <E T="03">See</E>
                             Regulation Best Interest, 
                            <E T="03">supra</E>
                             footnote 97, at page 33406.
                        </P>
                    </FTNT>
                    <P>
                        The primary information that broker-dealers are required to deliver under the Federal securities laws includes: disclosures pursuant to Regulation Best Interest,
                        <SU>503</SU>
                        <FTREF/>
                         Form CRS,
                        <SU>504</SU>
                        <FTREF/>
                         quarterly free credit balance notices,
                        <SU>505</SU>
                        <FTREF/>
                         disclosure of credit terms of margin loans as required under the Exchange Act,
                        <SU>506</SU>
                        <FTREF/>
                         initial and annual privacy notices as required pursuant to Regulation S-P,
                        <SU>507</SU>
                        <FTREF/>
                         and trade confirmations as required under the Exchange Act for each transaction effected for or with a customer.
                        <SU>508</SU>
                        <FTREF/>
                         Industry-wide, broker-dealers generate approximately 40.6 billion written trade confirmations per year in the aggregate.
                        <SU>509</SU>
                        <FTREF/>
                         We do not have direct access to the aggregate volume of the other deliveries, which broker-dealers maintain as records.
                    </P>
                    <FTNT>
                        <P>
                            <SU>503</SU>
                             17 CFR 240.15l-1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>504</SU>
                             17 CFR 275.204-5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>505</SU>
                             17 CFR 230.15c3-3(j)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>506</SU>
                             17 CFR 240.10b-16.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>507</SU>
                             17 CFR 248.4; 17 CFR 248.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>508</SU>
                             17 CFR 240.10b-10. Broker-dealers also have delivery obligations under SRO rules, which are outside the scope of this rulemaking.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>509</SU>
                             This estimate is the average of the total values reported on items 8107, 8108, and 8109 over the last three years (2023-2025) based on Schedule I on FOCUS filings.
                        </P>
                    </FTNT>
                    <P>
                        In addition, we understand that investors frequently are not direct shareholders of record, but instead hold their securities in “street name” through accounts with their broker-dealer.
                        <SU>510</SU>
                        <FTREF/>
                         In the case of broker-dealers, SRO rules provide that broker-dealer member firms are required to distribute certain disclosure documents, such as annual reports and interim reports, to customers for which they hold securities in street name, so long as the broker-dealer is assured that its reasonable expenses incurred in doing so will be reimbursed.
                        <SU>511</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>510</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at n.603 (citing the Rule 30e-3 Adopting Release, 
                            <E T="03">supra</E>
                             footnote 213).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>511</SU>
                             
                            <E T="03">See</E>
                             Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at section IV.B.1.
                        </P>
                    </FTNT>
                    <P>
                        Based on an analysis of Schedule I to the FOCUS reports and Form BD filings, there were 3,262 registered broker-dealers during the fourth quarter of 2025.
                        <SU>512</SU>
                        <FTREF/>
                         Of these, 274 were dually registered as investment advisers.
                        <SU>513</SU>
                        <FTREF/>
                         There were approximately 308 million customer accounts reported by those broker-dealers that hold customer cash and securities (“carrying broker-dealers”).
                        <SU>514</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>512</SU>
                             The numbers in this section exclude notice-registered broker-dealers.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>513</SU>
                             The number of broker-dealers dually registered as investment advisers was estimated based on FOCUS filings for broker-dealers during the fourth quarter of 2025 and Form ADV filings for investment advisers for the reporting period ending December 2025 with filings received through March 31, 2026.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>514</SU>
                             The number of customer accounts reported by carrying broker-dealers was estimated based on Form X-17A-5 Schedule I, Item I8080 for 2025.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Transfer Agents</HD>
                    <P>
                        Transfer agents may be registered with the Commission under the Exchange Act, or another appropriate 
                        <PRTPAGE P="45945"/>
                        regulatory agency as defined in section 3(a)(34)(B) of the Exchange Act.
                        <SU>515</SU>
                        <FTREF/>
                         Transfer agents maintain records of security ownership on behalf of issuers, process changes of ownership, and communicate information from issuers to securityholders. Transfer agents also act as paying agents, by accepting payments from issuers of securities and distributing the payments to the holders of those securities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>515</SU>
                             15 U.S.C. 78c(a)(34)(B).
                        </P>
                    </FTNT>
                    <P>Transfer agents are covered entities under the proposed rule and could rely on the proposed rule in delivering covered information to covered recipients. Specifically, transfer agents have obligations under the Federal securities laws to:</P>
                    <P>
                        • Deliver information in response to inquiries and requests; 
                        <SU>516</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>516</SU>
                             17 CFR 240.17Ad-5.
                        </P>
                    </FTNT>
                    <P>
                        • Notify guarantors and presentors of rejections of requests for transfer due to inadequate signature guarantees; 
                        <SU>517</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>517</SU>
                             17 CFR 240.17Ad-15.
                        </P>
                    </FTNT>
                    <P>
                        • Send notifications to security holders that do not negotiate checks within certain time periods of the checks being sent; 
                        <SU>518</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>518</SU>
                             17 CFR 240.17Ad-17.
                        </P>
                    </FTNT>
                    <P>
                        • Send data breach notifications to affected customers pursuant to Regulation S-P 
                        <SU>519</SU>
                        <FTREF/>
                         and Regulation S-AM.
                        <SU>520</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>519</SU>
                             17 CFR 248.1-248.30.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>520</SU>
                             17 CFR 248.101-248.128.
                        </P>
                    </FTNT>
                    <P>
                        As of December 31, 2025, there were 269 transfer agents registered with the Commission, with an additional 55 registered with another appropriate regulatory agency as defined in section 3(a)(34)(B) of the Exchange Act.
                        <SU>521</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>521</SU>
                             
                            <E T="03">See</E>
                             SEC, Statistics &amp; Data Visualizations: Transfer Agents (Mar. 17, 2026), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/data-research/statistics-data-visualizations/transfer-agents</E>
                            .
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Corporate Issuers and Transaction Participants</HD>
                    <P>
                        Corporate issuers with a class of securities registered under the Exchange Act or that are required to file reports under section 15(d) of the Exchange Act, obligors or trustees with delivery obligations under the Trust Indenture Act, and entities conducting securities offerings that are registered or exempt from the registration requirements under the Securities Act would be covered entities under proposed Reg E-Delivery.
                        <SU>522</SU>
                        <FTREF/>
                         These covered entities would be able to rely on the proposed rule to e-deliver covered information that would primarily include: issuer prospectuses, issuer offering circulars, tender offer statements and solicitation/recommendation statements.
                        <SU>523</SU>
                        <FTREF/>
                         In the case of proxy statements, information statements, and issuer annual reports to security holders, which are also covered information, covered entities would be required to comply with the applicable requirements of proposed Reg E-Delivery, in addition to the applicable requirements in proposed amended rule 14a-16, when delivering this covered information electronically. Under proposed Reg E-Delivery, covered entities would also include third parties that are required, pursuant to Regulations 14A, 14C, and 14D, to deliver covered information to covered recipients. Such third parties would include bidders in third-party tender offers and dissidents in contested proxy solicitations that are required to deliver covered information to the issuer's security holders.
                    </P>
                    <FTNT>
                        <P>
                            <SU>522</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.1.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>523</SU>
                             Information required under Regulation Crowdfunding is excluded from the definition of “covered information” under this proposal because offerings under Regulation Crowdfunding must be conducted exclusively through an online platform operated by a registered intermediary, a broker-dealer or funding portal and are already subject to specific e-delivery requirements. 
                            <E T="03">See supra</E>
                             section II.B.1.
                        </P>
                    </FTNT>
                    <P>
                        In 2025, approximately 3,900 issuers were conducting a registered securities offering under the Securities Act,
                        <SU>524</SU>
                        <FTREF/>
                         and approximately 1,500 issuers were conducting a securities offering exempt from the registration requirements under the Securities Act.
                        <SU>525</SU>
                        <FTREF/>
                         During the same year, 7,579 issuers had a class of securities registered under section 12 of the Exchange Act 
                        <SU>526</SU>
                        <FTREF/>
                         or were required to file reports under section 15(d) of the Exchange Act. There were approximately 700 obligors or trustees under an indenture subject to the qualification requirements of the Trust Indenture Act,
                        <SU>527</SU>
                        <FTREF/>
                         approximately 50 bidders in third-party tender offers,
                        <SU>528</SU>
                        <FTREF/>
                         30 dissidents (or dissident groups) in contested proxy solicitations,
                        <SU>529</SU>
                        <FTREF/>
                         and 50 filing persons on Schedule 13E-3.
                        <SU>530</SU>
                        <FTREF/>
                         There were 9,654 issuers and transaction participants in total.
                        <SU>531</SU>
                        <FTREF/>
                         As of December 31, 2025, approximately 28 million households owned stocks directly.
                        <SU>532</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>524</SU>
                             This estimate is based on unique filers of 424B prospectuses in 2025 that also previously filed one or more of the following corporate issuer registration statements in the three preceding years: Forms S-1, S-3, S-3ASR, S-4, S-11, SF-1, SF-3, F-1, F-3, F-3ASR, F-4, F-6, F-7, F-8, and F-10; and unique filers that did not file 424B prospectuses but filed one or more Forms S-8 or S-20 in 2025.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>525</SU>
                             This estimate is based on unique filers of Regulation D and Regulation A filings in 2025, according to staff analysis of EDGAR filings on Form 1-A (excluding post-qualification amendments) and on Form D (including Form D amendments). The filers of Regulation D are included only to the extent that a filer sells to non-accredited investors.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>526</SU>
                             This estimate is based on unique filers of Forms 10-K, 20-F, and 40-F (excluding BDCs) in 2025.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>527</SU>
                             This estimate is based on unique filers of 424B prospectuses specifically related to debt offerings during 2025 that also previously filed one or more of the following corporate issuer registration statements in the three preceding years: Forms S-1, S-3, S-3ASR, S-4, S-11, SF-1, SF-3, F-1, F-3, F-3ASR, F-4, F-6, F-7, F-8, and F-10; and unique indenture trustees identified in those same 424B prospectuses.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>528</SU>
                             This estimate is based on unique filers of Schedule TO-T in 2025. The Schedule TO-T filing appears twice in EDGAR for each tender offer: once for the bidder (also referred to as offeror) and once for the issuer. To avoid double counting, we excluded issuers and only counted bidders.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>529</SU>
                             This estimate is based on unique filers of DEFC14As in 2025. Both issuers and dissidents (there could be more than one dissident) can file their own DEFC14As resulting in two or more DEFC14A filings for the same shareholder vote. We only counted the unique dissidents in DEFC14A filings.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>530</SU>
                             This estimate is based on unique filers of Schedule 13E-3 in 2025.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>531</SU>
                             This estimate is based on unique entities among all issuers, obligors or trustees, bidders in third-party tender offers, dissidents (or dissident groups) in contested proxy solicitations, and filing persons on Schedule 13E-3.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>532</SU>
                             21% of 134.8 million households (in 2025) = 28 million households owning stocks directly. The percentage of households owning stocks directly was estimated using the 2022 Survey of Consumer Finances (SCF) data, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.federalreserve.gov/econres/scfindex.htm</E>
                            . The source of the total number of households is U.S. Census Bureau via FRED®, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://fred.stlouisfed.org/series/TTLHH</E>
                            . This estimate only includes household investors and does not include institutional investors.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(f) Other Covered Entities</HD>
                    <P>
                        As of December 31, 2025, there were 16 municipal securities dealers registered with the Commission on Form MSD. These municipal securities dealers are banks, or separately identifiable departments or divisions of banks with customer delivery obligations. The primary covered information that municipal securities dealers registered with the Commission on Form MSD are required to deliver to covered recipients includes preliminary and final official statements (upon the request of potential customers),
                        <SU>533</SU>
                        <FTREF/>
                         and, under certain circumstances, the written disclosure of any control relationship with an issuer and of any participation or financial interest in a distribution.
                        <SU>534</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>533</SU>
                             17 CFR 15c2-12(b)(2); 17 CFR 15c2-12(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>534</SU>
                             17 CFR 15c1-5; 17 CFR 15c1-6. Municipal securities dealers also have delivery obligations under SRO rules, which are outside the scope of this rulemaking.
                        </P>
                    </FTNT>
                    <P>
                        As of December 31, 2025, there were 54 SBSDs conditionally registered with the Commission.
                        <SU>535</SU>
                        <FTREF/>
                         To date, no applications for registration as an 
                        <PRTPAGE P="45946"/>
                        MSBSP have been filed with the Commission.
                        <SU>536</SU>
                        <FTREF/>
                         There were three SBSDRs registered with the Commission as of December 31, 2025.
                        <SU>537</SU>
                        <FTREF/>
                         There were eight SBSEFs registered with the Commission as of March 24, 2026.
                        <SU>538</SU>
                        <FTREF/>
                         All SBS Entities are covered entities under proposed Reg E-Delivery and would be permitted to rely on the proposed rule to satisfy their respective delivery obligations for covered information. The primary covered information that SBS Entities are required to deliver pursuant to the Federal securities laws is counterparty disclosures.
                        <SU>539</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>535</SU>
                             
                            <E T="03">See</E>
                             SEC Statistics &amp; Data Visualizations: Security-Based Swap Dealers (SBSDs), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/data-research/statistics-data-visualizations/security-based-swap-dealers-sbsds</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>536</SU>
                             
                            <E T="03">See</E>
                             List of Security-Based Swap Dealers and Major Security-Based Swap Participants (last reviewed or updated Jan. 2, 2025), 
                            <E T="03">available at https://www.sec.gov/about/divisions-offices/division-trading-markets/list-registered-security-based-swap-dealers-major-security-based-swap-participants</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>537</SU>
                             The three SBSDRs that are currently registered with the Commission are: ICE Trade Vault, LLC, DTCC Data Repository (U.S.), LLC, and KOR Reporting, Inc.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>538</SU>
                             The eight SBSEFs that are currently registered with the Commission are: Bloomberg SEF LLC, GFI Swaps Exchange LLC, GLMX TECHNOLOGIES, LLC, ICE Swap Trade, LLC, tpSEF Inc., Tradition SEF LLC, TW SEF LLC, and WEMATCH.LIVE LLC. 
                            <E T="03">See</E>
                             Security-Based Swap Execution Facilities (SBSEFs), 
                            <E T="03">available at https://www.sec.gov/about/divisions-offices/division-trading-markets/security-based-swap-execution-facilities-sbsefs</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>539</SU>
                             
                            <E T="03">See e.g.,</E>
                             17 CFR 240.15Fh; 17 CFR 240.13n-10; 17 CFR 242.812.
                        </P>
                    </FTNT>
                    <P>
                        Funding portals are registered with the Commission and are members of FINRA.
                        <SU>540</SU>
                        <FTREF/>
                         As of April 9, 2026, there were 75 registered funding portals that were members of FINRA (excluding funding portals that had withdrawn their registration and FINRA membership).
                        <SU>541</SU>
                        <FTREF/>
                         The primary covered information that funding portals are required to deliver pursuant to the Federal securities laws includes: initial and annual privacy notices, opt-out notices and data breach notifications to affected customers pursuant to Regulation S-P 
                        <SU>542</SU>
                        <FTREF/>
                         and Regulation S-AM 
                        <SU>543</SU>
                        <FTREF/>
                         and disclosures required pursuant to Regulation S-ID.
                        <SU>544</SU>
                        <FTREF/>
                         These registered funding portals are covered entities under proposed Reg E-Delivery and would be permitted to rely on the proposed rule to satisfy their customer delivery obligations for covered information.
                        <SU>545</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>540</SU>
                             17 CFR 227.400. 
                            <E T="03">See</E>
                             Regulation Crowdfunding, 
                            <E T="03">supra</E>
                             footnote 101.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>541</SU>
                             
                            <E T="03">See</E>
                             FINRA, Funding Portals We Regulate, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.finra.org/about/funding-portals-we-regulate</E>
                             (last updated Apr. 7, 2026).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>542</SU>
                             17 CFR 248.1-248.30.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>543</SU>
                             17 CFR 248.101-248.128.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>544</SU>
                             17 CFR 248.202.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>545</SU>
                             This excludes information delivered under Regulation Crowdfunding, as detailed in section II.B.1.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">3. External Studies</HD>
                    <HD SOURCE="HD3">(a) Investor Experience With the Opt-In Requirement</HD>
                    <P>
                        Some studies have produced findings that are consistent with the view that the current opt-in requirement for e-delivery has limited the ability of covered entities to provide e-delivery of covered information to investors. For example, one study reports findings from a survey of 1,300 individual investors (fielded May 16-19, 2022; investors had at least $5,000 in relevant accounts) in which 42% of surveyed investors agreed with “I still receive financial statements through the mail, but I would prefer to receive them all electronically.” 
                        <SU>546</SU>
                        <FTREF/>
                         Another study reports that, among fund investors who receive some regulatory disclosures in paper, 6% say that signing up for e-delivery “takes too much time.” 
                        <SU>547</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>546</SU>
                             
                            <E T="03">See</E>
                             SIFMA Survey, 
                            <E T="03">supra</E>
                             footnote 23.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>547</SU>
                             
                            <E T="03">See</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, at Figure 9 (“6 percent of fund investors indicate that signing up for e-delivery took too much time, which suggest that they want e-delivery but did not have time to sign up for it”).
                        </P>
                    </FTNT>
                    <P>
                        Even investors who decide to opt out of paper delivery (
                        <E T="03">i.e.,</E>
                         who choose e-delivery) may face obstacles to receiving e-delivery. According to one survey, 27% of respondents who do not currently receive e-delivery said “I have signed up for e-delivery but still receive paper documents.” 
                        <SU>548</SU>
                        <FTREF/>
                         According to another survey, among fund investors who receive some regulatory disclosures in paper, 32% say they “signed up for e-delivery but still receive paper documents.” 
                        <SU>549</SU>
                        <FTREF/>
                         This pattern could reflect difficulties in processing or responding to investor requests on the part of senders. Alternatively, it could reflect investor confusion about whether a request was successfully completed—for instance, whether a sign-up process required a confirmation step that some investors did not take. Under either interpretation, the frictions facing investors would extend beyond the time and attention burden of deciding to opt out and into the mechanics of the opt-out process.
                    </P>
                    <FTNT>
                        <P>
                            <SU>548</SU>
                             
                            <E T="03">See</E>
                             SIFMA Survey, 
                            <E T="03">supra</E>
                             footnote 23.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>549</SU>
                             
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25, at Figure 9.
                        </P>
                    </FTNT>
                    <P>
                        In another study, investors were asked through an online survey whether they prefer paper,  E-Delivery, or have no preference, and whether they receive paper or  E-Delivery currently.
                        <SU>550</SU>
                        <FTREF/>
                         Table 1 presents some of the reported findings. As shown, between 58% and 78% of investors 
                        <E T="03">prefer</E>
                         to receive  E-Delivery depending upon the type of document. The evidence also shows that, depending on the document, between 58% and 83% of surveyed investors said they received  E-Delivery (email or app push notifications), and between 17% and 42% said they received paper delivery. The percentage of respondents who said they received paper exceeded the percentage who expressed a preference for paper for all types of documents. Regarding  E-Delivery, the reports of receipt and preference were more closely aligned; this finding is consistent with the fact that to get email delivery these participants had to affirmatively request it.
                    </P>
                    <FTNT>
                        <P>
                            <SU>550</SU>
                             
                            <E T="03">See</E>
                             Broadridge Survey, 
                            <E T="03">supra</E>
                             footnote 30.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s100,12,10,12,12,12">
                        <TTITLE>Table 1—Survey Evidence: Alignment Between Form and Preference of Delivery</TTITLE>
                        <TDESC>
                            [E-Delivery vs. Paper Mail] 
                            <SU>a</SU>
                        </TDESC>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Account 
                                <LI>statements</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Tax forms
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Shareholder reports/
                                <LI>proxy </LI>
                                <LI>materials</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Summary
                                <LI>prospectus for</LI>
                                <LI>mutual funds</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">
                                Trade
                                <LI>confirmations</LI>
                                <LI>(%)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="05" RUL="s">
                            <ENT I="21">
                                <E T="02">Participants currently receiving/preferring email or app “push” notification (E-Delivery)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Currently receive email or app “push” notification</ENT>
                            <ENT>71</ENT>
                            <ENT>58</ENT>
                            <ENT>69</ENT>
                            <ENT>72</ENT>
                            <ENT>83</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Prefer to receive email or app “push” notification</ENT>
                            <ENT>70</ENT>
                            <ENT>58</ENT>
                            <ENT>69</ENT>
                            <ENT>70</ENT>
                            <ENT>78</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="03">Difference</ENT>
                            <ENT>1</ENT>
                            <ENT>0</ENT>
                            <ENT>0</ENT>
                            <ENT>2</ENT>
                            <ENT>5</ENT>
                        </ROW>
                        <ROW EXPSTB="05" RUL="s">
                            <PRTPAGE P="45947"/>
                            <ENT I="21">
                                <E T="02">Participants currently receiving/preferring paper delivery (postal mail)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Currently receive postal mail</ENT>
                            <ENT>29</ENT>
                            <ENT>42</ENT>
                            <ENT>31</ENT>
                            <ENT>28</ENT>
                            <ENT>17</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Prefer to receive postal mail</ENT>
                            <ENT>25</ENT>
                            <ENT>38</ENT>
                            <ENT>23</ENT>
                            <ENT>22</ENT>
                            <ENT>15</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="03">Difference</ENT>
                            <ENT>4</ENT>
                            <ENT>4</ENT>
                            <ENT>8</ENT>
                            <ENT>6</ENT>
                            <ENT>2</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Participant expressed no preference for a delivery method</ENT>
                            <ENT>6</ENT>
                            <ENT>4</ENT>
                            <ENT>7</ENT>
                            <ENT>8</ENT>
                            <ENT>7</ENT>
                        </ROW>
                        <TNOTE>
                            <SU>a</SU>
                             Source: 
                            <E T="03">See</E>
                             Broadridge Survey, 
                            <E T="03">supra</E>
                             footnote 30 at Figure 1. (“Question: Considering the delivery methods of communication from your primary brokerage/investment firm, please tell us: A. How do you receive each of the following communications? B. How do you prefer to receive each of these communications?”) The percentages that “currently receive or prefer to receive email or an app “push” notification” in the Table are the sum of the percentages from Figure 1 that (a) currently receive or prefer to receive email and (b) currently receive or prefer to receive an app “push” notification.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        Another study asked adults with employer-sponsored retirement plans whether they would prefer to receive statements in one of three formats: (1) electronic only, (2) mail only, or (3) a combination of electronic statements supplemented with paper statements at least once per year.
                        <SU>551</SU>
                        <FTREF/>
                         In this study, 42% preferred electronic only, 20% mail only, and 37% preferred a combination of electronic and mail delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>551</SU>
                             
                            <E T="03">See</E>
                             2022 AARP Study, 
                            <E T="03">supra</E>
                             footnote 33.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(b) Access to Internet and E-Delivery</HD>
                    <P>
                        Finally, some recent surveys present findings of large changes in internet access, use, and preferences in recent years.
                        <SU>552</SU>
                        <FTREF/>
                         One recent survey reported that 96% of adults said they used the internet regularly in 2025, compared to just 52% who said they used the internet regularly in 2000.
                        <SU>553</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>552</SU>
                             
                            <E T="03">See supra</E>
                             section I.B.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>553</SU>
                             
                            <E T="03">See</E>
                             2025 Pew Internet Fact Sheet, 
                            <E T="03">supra</E>
                             footnote 20.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="228">
                        <GID>EP21JY26.006</GID>
                    </GPH>
                    <P>
                        As population-wide internet usage has increased, the gap in usage between different age groups has also narrowed. According to the same survey, 90% of adults in the 65+ age group used the internet in 2025, up from 14% in 2000. Almost all adults in the other surveyed age groups (18-29, 30-49, and 50-64) used the internet in 2025.
                        <SU>554</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>554</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="228">
                        <PRTPAGE P="45948"/>
                        <GID>EP21JY26.007</GID>
                    </GPH>
                    <HD SOURCE="HD3">(c) Volume of Paper Delivered</HD>
                    <P>
                        We do not have direct access to data on the total number of deliveries of covered information that occur by paper mail currently. We also do not have access to data on the total number of covered recipients who currently receive  E-Delivery. Some industry studies and reports on deliveries of certain covered information by certain covered entities, however, provide evidence on the current annual volume of paper mailings for such covered information, which could, after adoption of the proposed rule, begin to be delivered in electronic form. Specifically, one study presents evidence regarding the potential cost savings from funds and broker-dealers defaulting to  E-Delivery for certain covered information, which it analyzes partially based on a survey of the frequency of paper mailings per account for those types of covered information.
                        <SU>555</SU>
                        <FTREF/>
                         Table 2 details the findings of the study regarding disclosures by funds, and disclosures relating to transactions in fund shares, that would be covered information under the proposed rule, either through delivery obligations of the fund (proxy voting materials, shareholder reports, prospectuses and summary prospectuses) or of the broker-dealer (trade confirmations).
                        <SU>556</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>555</SU>
                             
                            <E T="03">See</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>556</SU>
                             The study does not consider all types of covered information under the proposed rule and considers some documents that are not covered information under the proposed rule. The study presents findings on account statements, for example, which are not covered information under the proposed rule.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="5" OPTS="L2,nj,i1" CDEF="s100,12,12,10,10">
                        <TTITLE>Table 2—Estimates of the Numbers of Physical Documents Funds and Broker-Dealers Send by Mail Annually </TTITLE>
                        <TDESC>
                            [Covered information with available data] 
                            <SU>a</SU>
                        </TDESC>
                        <BOXHD>
                            <CHED H="1">Document type</CHED>
                            <CHED H="1">
                                Number of
                                <LI>accounts</LI>
                                <LI>(millions)</LI>
                            </CHED>
                            <CHED H="1">
                                Accounts w/electronic
                                <LI>delivery</LI>
                                <LI>(%)</LI>
                            </CHED>
                            <CHED H="1">Frequency</CHED>
                            <CHED H="1">
                                Number of mailings
                                <LI>(millions)</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Delivered by Funds</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00" RUL="s">
                            <ENT I="01">Proxy voting materials</ENT>
                            <ENT>544.3</ENT>
                            <ENT>88</ENT>
                            <ENT>0.5</ENT>
                            <ENT>32.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Shareholder reports</ENT>
                            <ENT>544.3</ENT>
                            <ENT>82</ENT>
                            <ENT>2</ENT>
                            <ENT>196</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Prospectuses/Summary prospectuses</ENT>
                            <ENT>544.3</ENT>
                            <ENT>92</ENT>
                            <ENT>1</ENT>
                            <ENT>43.5</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="03">Sub-total estimated number of physical mailings per year</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                            <ENT>272</ENT>
                        </ROW>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">Delivered by Broker-Dealers</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00" RUL="s">
                            <ENT I="01">Trade confirmations</ENT>
                            <ENT>307.9</ENT>
                            <ENT>83</ENT>
                            <ENT>2</ENT>
                            <ENT>104.7</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Estimated number of physical mailings per year</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                            <ENT>377</ENT>
                        </ROW>
                        <TNOTE>
                            <SU>a</SU>
                             
                            <E T="03">See</E>
                             ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, at app. B, tbl1 (providing estimates of the numbers of mailings annually of documents eligible for default E-Delivery to fund shareholders).
                        </TNOTE>
                    </GPOTABLE>
                    <PRTPAGE P="45949"/>
                    <HD SOURCE="HD2">C. Benefits and Costs</HD>
                    <P>
                        Covered entities that comply with the conditions of Reg E-Delivery would generally be permitted (but not required) to use  E-Delivery as the default delivery method to deliver covered information to covered recipients.
                        <SU>557</SU>
                        <FTREF/>
                         Covered entities that choose to rely on Reg E-Delivery  for  E-Delivery of covered information, would be assured that they have satisfied, through the use of  E-Delivery, their applicable requirements to deliver covered information under the Federal securities laws.
                        <SU>558</SU>
                        <FTREF/>
                         Additionally, Reg E-Delivery would permit (but not require) covered entities to use E-Delivery as the default method of delivery for covered information, subject to certain conditions. Covered entities that would choose to pursue the default E-D model under Reg E-Delivery  would be permitted to e-deliver covered information without first obtaining recipients' affirmative consent to pursue the default. We estimate that the vast majority of covered entities that deliver covered information electronically would thus choose to comply with the conditions of Reg E-Delivery to satisfy their delivery requirements under the Federal securities laws.
                        <SU>559</SU>
                        <FTREF/>
                         The choice to rely on proposed Reg E-Delivery  to e-deliver covered information would not affect the content of information that covered recipients receive, although covered recipients may benefit in some ways from enhanced abilities to access, read, and search material in electronic formats.
                    </P>
                    <FTNT>
                        <P>
                            <SU>557</SU>
                             While compliance with the requirements of proposed Reg E-Delivery  would be optional for most covered entities that choose to rely on Reg E-Delivery  to e-deliver covered information, if an issuer, other soliciting person, or intermediary elects to use E-Delivery to furnish a proxy statement, information statement, or annual report to security holders, the amendments we are proposing to Regulations 14A and 14C would require the issuer, other soliciting person, or intermediary to comply with the requirements associated with the permitted E-Delivery methods and the requirements for website availability of information under Reg E-Delivery, in addition to the requirements in proposed amended Regulations 14A and 14C. For purposes of the discussion in section III, when describing the requirements of proposed Reg E-Delivery as “optional,” we are not referring to issuers, other soliciting persons, or intermediaries that are required to furnish a proxy statement, information statement, or annual report to security holders under Regulations 14A or 14C. 
                            <E T="03">See supra</E>
                             section II.F.2.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>558</SU>
                             Reg E-Delivery  would not preclude a covered entity from continuing to obtain affirmative consent from covered recipients, instead of using e-delivery as the default method of delivery, if the covered entity prefers this approach. 
                            <E T="03">See supra</E>
                             footnote 115.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>559</SU>
                             
                            <E T="03">See infra</E>
                             footnote 658 and accompanying text.
                        </P>
                    </FTNT>
                    <P>Covered entities that choose to rely on proposed Reg E-Delivery  would be required to meet the requirements of the proposed rule concerning the methods for e-delivery described in section II.B, the requirements for website availability that are described in section II.C, and, to the extent they choose to use E-Delivery as their default delivery method, notification regarding the upcoming change in the default form of delivery during the transition process for covered recipients who are currently receiving paper described in section II.D.</P>
                    <P>
                        The proposed rule would supersede practices under the baseline that covered entities and covered recipients currently follow under the E-Delivery Guidance, rule 30e-3, rule 14a-16, and the E-SIGN Act. If adopted, Reg E-Delivery  would supersede the parts of the E-Delivery Guidance that provide a somewhat different framework for analyzing whether delivery has been satisfied—specifically, the provisions of the E-Delivery Guidance that are based on more general applications of the concept of notice and access, and a different approach to evidence of delivery, as discussed in section II.G. The Commission is also proposing to rescind rule 30e-3 and to amend rules relating to the dissemination of proxy materials and tender offer materials to facilitate the proposed new E-Delivery framework, as discussed in section II.F. Finally, the Commission is proposing that certain categories of covered information delivered under proposed Reg E-Delivery  would be exempt from the consumer consent requirements of the E-SIGN Act as discussed in section II.E above, and therefore the practices under proposed Reg E-Delivery  would effectively replace these consumer consent requirements. The Commission is proposing a two-year transition period from the time of the publication of the rule in the 
                        <E T="04">Federal Register</E>
                         until the rule's compliance date.
                    </P>
                    <HD SOURCE="HD3">1. Benefits</HD>
                    <HD SOURCE="HD3">(a) Benefits to Covered Entities</HD>
                    <P>
                        The benefits to covered entities that choose to implement default e-delivery in reliance on the proposed rule would take the form of cost savings. These covered entities would no longer incur paper, printing, and postage costs to deliver covered information to covered recipients, unless a covered recipient expressly affirms a preference for paper delivery.
                        <SU>560</SU>
                        <FTREF/>
                         Evidence in the academic literature supports the view that moving from an opt-in regime to an opt-out regime, with e-delivery as the new default, would increase the share of deliveries made electronically.
                        <SU>561</SU>
                        <FTREF/>
                         The magnitude of the cost savings for a covered entity would depend on multiple factors, including the number of covered recipients currently receiving paper delivery, the number of covered recipients that have or have not provided electronic addresses, the number of covered recipients that would expressly affirm a preference for paper delivery under the proposed rule, and the frequency of delivery of the covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>560</SU>
                             We anticipate that any covered entities that maintain a default paper delivery approach would choose to rely on the proposed rule for e-deliveries to covered recipients that have affirmatively chosen to receive covered documents electronically. We expect most such covered entities currently follow the E-Delivery Guidance. To the extent those covered entities would rely on proposed Reg E-Delivery, they may benefit from increased legal certainty (and associated reduction in legal costs) resulting from the assurance that they have satisfied, through the use of e-delivery, applicable requirements to deliver required disclosures, reports, and other regulatory materials under the Federal securities laws. But they would not experience the benefits from the savings in printing and mailing costs from defaulting to e-delivery, as discussed in this section.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>561</SU>
                             While we are not aware of academic studies analyzing paper versus electronic delivery of covered information, academic evidence that defaults materially affect real-world choices across domains is summarized in Jon M. Jachimowicz et al., 
                            <E T="03">When and Why Defaults Influence Decisions: A Meta-Analysis of Default Effects,</E>
                             3 Behav. Pub. Pol'y 159 (2019) (reporting substantially higher uptake under opt-out defaults than opt-in defaults). Classic field evidence includes Brigitte C. Madrian &amp; Dennis F. Shea, 
                            <E T="03">The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior,</E>
                             Q.J.E. (2001) (showing large participation changes under automatic enrollment/defaults) and Richard H. Thaler and Shlomo Bernatzi, 
                            <E T="03">Save More Tomorrow</E>
                            <E T="51">TM</E>
                              
                            <E T="03">Using Behavioral Economics to Increase Employee Saving</E>
                            , 
                            <E T="03">Journal of Political Economy</E>
                             112(1):S164-S187 (2004) (showing higher rates of enrollment in employee savings plans when enrollment is automatic compared to when enrollment requires an employee to complete a form).
                        </P>
                    </FTNT>
                    <P>
                        In quantifying the magnitude of these cost savings, we assume that 95% of covered entities for which we provide such estimates would rely on the proposed rule to default to an e-delivery model of delivery and that 95% of current recipients of paper mailings from those covered entities would transition to e-delivery (
                        <E T="03">i.e.,</E>
                         not opt out). These two assumptions imply that current paper deliveries would be reduced by a factor of 0.9025 
                        <SU>562</SU>
                        <FTREF/>
                         (“cost reduction factor”) for those entities as a result of the proposal. In addition, for types of covered entities for which we do not have direct estimates for the number of paper mailings of covered information under the baseline, we make the assumption that 15% of covered information is currently sent in 
                        <PRTPAGE P="45950"/>
                        paper.
                        <SU>563</SU>
                        <FTREF/>
                         Using these assumptions, we estimate that reliance on the proposed rule to use default e-delivery would yield annual savings in the cost of paper, printing and postage from substitution of e-delivery for paper delivery of approximately $35.2 million by registered investment advisers,
                        <SU>564</SU>
                        <FTREF/>
                         $196.5 million by regulated investment companies,
                        <SU>565</SU>
                        <FTREF/>
                         $103.0 million by broker-dealers,
                        <SU>566</SU>
                        <FTREF/>
                         and $127.9 million from corporate issuers (e-delivery of corporate proxy materials).
                        <SU>567</SU>
                        <FTREF/>
                         These estimates yield total aggregate cost savings from the proposed rule of about $462.6 million annually.
                        <SU>568</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>562</SU>
                             0.9025 = 0.95 × 0.95. To the extent that current paper deliveries would be reduced by more than 90.25 percent, cost savings would be larger; to the extent that paper deliveries would be reduced by less than this percentage, cost savings would be lower.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>563</SU>
                             As indicated in Table 1 and 2, the percentage of covered recipients who currently receive e-delivery varies across covered entities and by document type. For the purpose of estimating cost savings, we make the assumption, based on this evidence, that 15% of deliveries currently occur by paper mail.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>564</SU>
                             For adviser deliveries of covered information, we estimate $35.1975 million savings (=65 million × 0.15 × 5 × $0.80 × 0.9025), based on staff estimates including the number of adviser clients currently (65 million, 
                            <E T="03">see supra</E>
                             section III.B.2.a, the percentage sent by paper mail currently (0.15), the number of deliveries per client (5), and the cost reduction factor (0.9025).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>565</SU>
                             For fund deliveries of covered information, we estimate: $196.528 million savings (=272.2 million × $0.80 × 0.9025), based on the number of mailings (272.2 million, see 
                            <E T="03">supra</E>
                             footnote 494) the cost reduction factor (0.9025), and an estimate of $0.80 for the per unit cost of printing and mailing (
                            <E T="03">see</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 15, at app. B, tbl2. We use the sum of the printing ($0.57) and mailing ($0.23) unit cost provided for shareholder reports ($0.80 = $0.57 + $0.23), which is greater than that for prospectuses/summary prospectuses and less than that for trade confirmations or mailing of fund-related proxy voting information.) We exclude from these estimates the preference management fee that we discuss in 
                            <E T="03">infra</E>
                             section III.C.2.b and that would reduce the net cost savings for some covered entities.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>566</SU>
                             For broker-dealer deliveries of covered information, we estimate $102.957 million savings (=142.6 million × 0.9025 × $0.80), based on the above estimate of trade confirmation mailings (142.6 million; 
                            <E T="03">see</E>
                             section III.B.2.c, the cost reduction factor (0.9025) and a $0.80 per-unit cost of paper printing and mailing described above (
                            <E T="03">see id.</E>
                            ).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>567</SU>
                             For deliveries of corporate proxy materials, we estimate $127.9 million in the cost of paper, printing, and postage (before netting out the preference management fee). This estimate is based on proprietary industry data as well as the cost reduction factor (0.9025).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>568</SU>
                             We estimate savings of $462.6 million annually ($35.2 million + $196.5 million + $103.0 million + $127.9 million) in the cost of paper, printing, and postage from reliance on the proposed rule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(b) Benefits to Covered Recipients</HD>
                    <HD SOURCE="HD3">i. Default E-Delivery</HD>
                    <P>Table 3 illustrates scenarios under which covered recipients would be affected under the proposed rule.</P>
                    <GPOTABLE COLS="4" OPTS="L2,nj,i1" CDEF="s75,r75,r75,r75">
                        <TTITLE>Table 3—Delivery Scenarios for Covered Recipients, With and Without the Proposed Rule</TTITLE>
                        <BOXHD>
                            <CHED H="1">
                                <E T="03">Current delivery scenario</E>
                                <LI>
                                    <E T="03">(under the baseline)</E>
                                </LI>
                            </CHED>
                            <CHED H="1">
                                <E T="03">Delivery scenario under proposed Reg E-Delivery</E>
                            </CHED>
                            <CHED H="2">
                                <E T="03">Covered entity</E>
                                <LI>
                                    <E T="03">chooses not to change default delivery to e-delivery under Reg E-Delivery and covered recipient does not amend preference</E>
                                </LI>
                            </CHED>
                            <CHED H="2">
                                <E T="03">Covered entity</E>
                                <LI>
                                    <E T="03">chooses to change default delivery to e-delivery under Reg E-Delivery, and, in turn, covered recipient expresses preference for paper</E>
                                </LI>
                            </CHED>
                            <CHED H="2">
                                <E T="03">Covered entity</E>
                                <LI>
                                    <E T="03">chooses to change default delivery to e-delivery under Reg E-Delivery, and, in turn, covered recipient does not express preference for paper</E>
                                </LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">
                                <E T="03">Covered recipient has expressed a preference for e-delivery under E-Delivery Guidance and thus receives e-delivery</E>
                            </ENT>
                            <ENT>Covered recipient continues to receive e-delivery</ENT>
                            <ENT>Covered recipient's delivery is changed from e-delivery to paper format</ENT>
                            <ENT>Covered recipient continues to receive e-delivery.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                <E T="03">Covered recipient has not expressed a preference for e-delivery under E-Delivery Guidance and thus receives paper</E>
                            </ENT>
                            <ENT>Covered recipient continues to receive delivery in paper format</ENT>
                            <ENT>Covered recipient continues to receive delivery in paper format</ENT>
                            <ENT>Covered recipient's delivery is changed from paper format to e-delivery.</ENT>
                        </ROW>
                    </GPOTABLE>
                    <P>
                        The benefits to covered recipients of covered entities that use Reg E-Delivery to implement default e-delivery would include: (1) benefits from the elimination of the burden of having to communicate a preference for e-delivery for those covered recipients that do not have a preference for paper; and (2) benefits that electronic documents can provide or support, such as benefits enabled through search functions and summary tools (
                        <E T="03">e.g.,</E>
                         AI tools), to facilitate the enhanced review of the covered information by covered recipients. In addition, to the extent that covered entities that choose to implement default e-delivery pass through their cost savings from printing, mailing and postage to their covered recipients, then these covered recipients would also experience benefits in the form of reduced costs arising from their relationship with covered entities under the proposed rule.
                    </P>
                    <P>
                        <E T="03">Reduced burden for some covered recipients.</E>
                         The proposed rule would eliminate the requirement for covered recipients that have provided an electronic address to the covered entity to communicate their preferences for e-delivery in order to receive e-delivery. Covered recipients who prefer e-delivery and would, under the baseline, incur costs of their time and attention to communicate their preference would benefit from the elimination of these costs.
                        <SU>569</SU>
                        <FTREF/>
                         For others who prefer e-delivery but would not have requested it under the baseline, the benefits would also include delivery of covered information in their preferred form (e-delivery) rather than the paper delivery that they would have received otherwise. The magnitude of these benefits would vary according to the strength of the covered recipient's preference for electronic relative to paper delivery.
                        <SU>570</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>569</SU>
                             Some academic studies show that consumers adopt the default choice even when they would prefer opting out, because opting out requires time, attention, and (often) information acquisition, and many recipients do not choose to incur those costs; 
                            <E T="03">see, e.g.,</E>
                             Oren Bar-Gill &amp; Omri Ben-Shahar, 
                            <E T="03">Optimal Defaults in Consumer Markets,</E>
                             45 J. Legal Stud. S137 (2016) (modeling default design when recipients may be imperfectly informed and must incur information/attention costs to decide whether to opt out). Evidence that defaults materially affect real-world choices across domains is summarized in Jon M. Jachimowicz et al., 
                            <E T="03">When and Why Defaults Influence Decisions: A Meta-Analysis of Default Effects,</E>
                             3 Behav. Pub. Pol'y 159 (2019) (reporting substantially higher uptake under opt out defaults than opt in defaults). Classic field evidence includes Brigitte C. Madrian &amp; Dennis F. Shea, 
                            <E T="03">The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior,</E>
                             Q.J.E. (2001) (showing large participation changes under automatic enrollment/defaults). Experimental evidence linking defaults to attention/decision time includes Andrew Caplin &amp; Daniel J. Martin, 
                            <E T="03">Defaults and Attention: The Drop Out Effect</E>
                             (NBER Working Paper No. 17988, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>570</SU>
                             The ease with which an individual covered recipient communicates her preferred choice as an alternative to the default depends on the magnitude of opt-out frictions (including cognitive and informational costs) that are required for individuals to recognize the choice, become informed, and depart from the default, as discussed in section III.B.3.
                        </P>
                    </FTNT>
                    <PRTPAGE P="45951"/>
                    <P>
                        <E T="03">Enhanced review of covered information.</E>
                         The proposed rule may benefit some covered recipients by enabling covered entities to provide them with a potentially more personalized, interactive, and efficient experience with disclosure than delivery in a paper format. For example, a delivery method other than static paper permits the inclusion of overlays in regulatory disclosure and reports, such as calculators, hover-overs, or pop-up information, which have the potential to enhance engagement. In addition, e-delivered documents are better suited for AI tools that could help covered recipients digest and analyze disclosures. E-delivery also has accessibility and retention benefits, in that it allows for, among other things, font size adjustment and other accessibility tools such as translation tools, the use of search tools, and the ability to retain disclosure in convenient electronic formats.
                    </P>
                    <HD SOURCE="HD3">ii. Conditions of Reg E-Delivery</HD>
                    <P>
                        <E T="03">Disclosure of E-Delivery and Special Provisions for Covered Recipients Receiving Paper.</E>
                         Before relying on the proposed rule to e-deliver covered information to covered recipients who become entitled to receive covered information after the effective date of the rule (
                        <E T="03">e.g.,</E>
                         new investors in a registered investment company or new clients of an investment adviser), or who receive any covered information in paper as of the effective date of Reg E-Delivery, a covered entity must provide certain disclosures to such covered recipients.
                        <SU>571</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>571</SU>
                             
                            <E T="03">See supra</E>
                             footnote 461 and accompanying text.
                        </P>
                    </FTNT>
                    <P>
                        For covered recipients that become entitled to receive covered information after the effective date of the rule, a covered entity relying on Reg E-Delivery to e-deliver covered information to such recipients would have to provide certain disclosures under Reg E-Delivery section 303.102(b).
                        <SU>572</SU>
                        <FTREF/>
                         Specifically, a covered entity that intends to e-deliver covered information by default would need to provide a clear and conspicuous disclosure to the covered recipient that describes the types of covered information that will be delivered electronically to the electronic address the covered recipient provides (or accepts to use) to receive covered information, unless the covered recipient opts out of e-delivery. Alternatively, for a covered entity that intends only to use e-delivery where a covered recipient affirmatively elects to receive covered information electronically, the required disclosure would need to state that the covered recipient may opt to have covered information delivered electronically to the electronic address the covered recipient provides or accepts to use to receive covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>572</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.102(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        The proposed disclosure requirements in Reg E-Delivery section 303.102(b) would benefit covered recipients of covered entities that would use Reg E-Deliver to implement default e-delivery by helping ensure that covered recipients who provide an electronic address to receive covered information are aware of how the covered entity intends to use the electronic address in communicating with the covered recipient and to inform the covered recipient of the specific items of covered information that will be electronically delivered using the covered recipient's electronic address. For covered entities that do not intend to pursue the default e-delivery model under Reg E-Delivery, the disclosure would inform such covered recipients that they need to affirmatively elect to receive covered information electronically if that is their preference.
                        <SU>573</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>573</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.2.
                        </P>
                    </FTNT>
                    <P>
                        Reg E-Delivery would include a special provision for covered recipients who, as of the effective date of Reg E-Delivery, are receiving any covered information in paper format, where the covered entity wishes to transition such covered recipients to default e-delivery under the rule.
                        <SU>574</SU>
                        <FTREF/>
                         Under this provision, a covered entity that wishes to transition covered recipients receiving paper to default e-delivery would generally be required to provide those covered recipients currently receiving any covered information in paper format (and for whom the covered entity has an electronic address) with a paper initial notice at least 180 days before the transition to default e-delivery, and a paper follow-up notice 30 days before the transition.
                        <SU>575</SU>
                        <FTREF/>
                         The proposed notice requirements in Reg E-Delivery section 303.104 would benefit covered recipients currently receiving paper by alerting them to the upcoming change in delivery method and providing them an opportunity to elect to continue to receive paper delivery if that is their preference or to update an electronic address they have on file with the covered entity. The proposed 180-day period would benefit covered recipients by providing sufficient time for covered recipients receiving paper to receive and respond to notices of upcoming default e-delivery and opt out, either in whole or in part. The proposed requirement for a second, follow-up notice would benefit investors by increasing the likelihood that covered recipients receiving paper would see and review the notice and (if they wish) make an election to opt out of e-delivery or update their current electronic address.
                        <SU>576</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>574</SU>
                             
                            <E T="03">See</E>
                             proposed Reg E-Delivery § 303.104.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>575</SU>
                             The notices would alert the covered recipient about the upcoming transition to e-delivery, specify the electronic address where covered information would be provided, and include a prominent statement describing the ability to: opt out of e-delivery and receive paper copies at any time, free of charge; the ability to update or confirm one's electronic address; and the process by which a covered recipient could opt out of e-delivery and/or update or confirm one's electronic address.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>576</SU>
                             
                            <E T="03">See supra</E>
                             section II.D.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">E-Delivery Methods and Requirements.</E>
                         Covered entities that choose to rely on proposed Reg E-Delivery to e-deliver any covered information to covered recipients would be required to meet the requirements of the proposed rule concerning the methods for e-delivery described in section II.B.
                    </P>
                    <P>
                        Under the proposed rule, a covered entity could choose to deliver covered information either directly to an electronic address or by providing a statement of availability.
                        <SU>577</SU>
                        <FTREF/>
                         Under the baseline, covered entities already commonly follow a similar approach, and will typically send an email or other electronic notice that contains a link to where the materials are available online or an email that includes the materials as attachments to covered recipients. Providing covered entities with a choice between both electronic delivery methods would therefore continue to allow covered entities to tailor the choice of delivery method to the type of covered information and the covered recipient's preferences. If information is delivered directly, the direct delivery would be subject to certain content requirements, and the covered entity must include all of the covered information being delivered either in the body of the communication or as an attachment. These requirements would benefit any covered recipients of covered entities that currently do not follow similar practices by helping ensure that a covered recipient receives complete covered information through direct delivery and is able to easily review and preserve that covered information.
                        <SU>578</SU>
                        <FTREF/>
                         If covered information is delivered through a statement of availability, the statement similarly would be subject to certain content requirements. These requirements 
                        <PRTPAGE P="45952"/>
                        would benefit any covered recipients of covered entities that currently do not follow similar practices by helping ensure that covered recipients understand the process by which the covered information will be made available to them and by increasing the likelihood that covered recipients click through and review the covered information.
                        <SU>579</SU>
                        <FTREF/>
                         The proposed rule also requires that a statement of availability or direct delivery must include a prominent statement describing the covered entity's obligation to provide a paper copy of covered information upon request and the covered recipient's ability to opt out of electronic delivery and update its electronic address. This proposed disclosure requirement would also benefit covered recipients by helping to ensure that covered entities provide disclosure that makes covered recipients aware of these delivery options and to permit them to more easily act upon them if they choose to do so.
                        <SU>580</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>577</SU>
                             The proposed rule would require delivery of covered information that includes PFI using a statement of availability. 
                            <E T="03">See supra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>578</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.4.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>579</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.3; 
                            <E T="03">see also supra</E>
                             footnote 130.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>580</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.3.
                        </P>
                    </FTNT>
                    <P>
                        In addition, the proposed rule would subject both directly delivered information as well as delivery effectuated through a statement of availability to conditions on the timing, format, and manner of e-delivery. While the E-Delivery Guidance includes no generally applicable requirements for content, format, or manner of delivery, the timing of e-delivery generally already occurs within the same time frame as required under proposed Reg E-Delivery. Therefore, while the proposed rule would not affect the timing of e-delivery of covered information, the proposed rule would benefit covered recipients by helping ensure that the e-delivery is not lost or buried in other communications or marketing materials so that covered recipients are more likely to see the e-delivery and review the covered information.
                        <SU>581</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>581</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.6.
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule would also include conditions for the e-delivery and website availability of covered information containing PFI that are designed to provide enhanced protections for this sensitive information. Among other requirements, the proposed rule would not permit the e-delivery of covered information containing PFI through direct delivery (it could only be delivered through the statement of availability method of e-delivery) and would require that such information be protected by a process reasonably designed to safeguard the PFI. While the E-Delivery Guidance does not include the specific requirements for PFI that are included in proposed Reg E-Delivery, it does state that information specific to personal financial matters requires intermediaries to take reasonable precautions to ensure the integrity, confidentiality, and security of that information.
                        <SU>582</SU>
                        <FTREF/>
                         To the extent that any covered entities currently follow practices that are less protective of covered information containing PFI than those they would implement when relying on Reg E-Delivery, these conditions would benefit their investors by helping reduce the risk of unauthorized accesses to PFI and any associated risk of substantial financial harm to the covered recipient.
                        <SU>583</SU>
                        <FTREF/>
                         In addition, the proposed rule would require that the website address included in the statement of availability lead directly to the covered information immediately after the covered recipient completes the process reasonably designed to safeguard the PFI. To the extent that covered entities currently do not provide similarly seamless access to covered information containing PFI after informing a covered recipient of the availability of the information, this requirement would benefit investors by allowing for easy access to the covered information after the completion of the safeguarding process.
                        <SU>584</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>582</SU>
                             While PFI generally is delivered through a statement of availability method, we understand that some entities may directly deliver materials with embedded multifactor authentication. 
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnotes 25, 171.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>583</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>584</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule provides that a covered entity must send, free of charge, one paper format copy of any of the covered information that the covered entity has delivered through e-delivery to a covered recipient during the period the covered entity is required to retain the covered information under the Federal securities laws (or during the preceding two years if there is no such requirement), to any such covered recipient requesting such a copy. As discussed above, the E-Delivery Guidance does not directly require the provision of free paper copies, in the context of investors and others who affirmatively elect e-delivery.
                        <SU>585</SU>
                        <FTREF/>
                         While we understand that many covered entities provide free paper copies of electronically delivered covered information, we also understand that there are certain firms that currently reserve the right, when a person establishes a customer or client relationship with such firm or otherwise through contract, to charge a fee for paper deliveries.
                        <SU>586</SU>
                        <FTREF/>
                         Any covered recipients that currently incur a fee for paper delivery and who would affirmatively request to receive paper delivery under the proposed rule would benefit by receiving paper format delivery free of charge.
                    </P>
                    <FTNT>
                        <P>
                            <SU>585</SU>
                             
                            <E T="03">See supra</E>
                             footnote 459.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>586</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.3 and section II.B.7.
                        </P>
                    </FTNT>
                    <P>
                        Under the proposed rule, covered entities providing e-delivery must permit a covered recipient, free of charge, to update their electronic address upon request. In addition, if the covered entity offers a choice as to the type of electronic address to be used for e-delivery (for example, email or mobile phone number), the covered entity must also permit the covered recipient to select a preference free of charge.
                        <SU>587</SU>
                        <FTREF/>
                         These provisions would benefit investors by ensuring that covered recipients are able to receive electronic delivery to the electronic address of their preference and, where the covered entity supports multiple types of electronic addresses, to select the covered recipient's preferred means of delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>587</SU>
                             
                            <E T="03">See supra</E>
                             footnote 460 and accompanying text.
                        </P>
                    </FTNT>
                    <P>
                        Finally, the proposed rule would require covered entities to adopt and implement written policies and procedures reasonably designed to identify and remediate failed e-delivery. If a covered entity identifies an e-delivery failure, it would be required promptly to take reasonable remediation steps, including obtaining a new electronic address or delivering the covered information in paper format until the covered recipient provides a new electronic address. We anticipate that firms using e-delivery under the E-Delivery Guidance generally already are following processes to identify and remediate e-delivery failures, even though the E-Delivery Guidance does not specifically require the adoption of policies and procedures addressing failed e-delivery.
                        <SU>588</SU>
                        <FTREF/>
                         To the extent that some covered entities would be more effective at identifying or remediating failed e-delivery when relying on proposed Reg E-Delivery (because the proposed rule includes the requirement to adopt policies and procedures addressing these topics), their covered recipients would benefit by more reliably receiving the covered information and, in the case of delivery failures, benefit in that these failures are remediated effectively.
                    </P>
                    <FTNT>
                        <P>
                            <SU>588</SU>
                             
                            <E T="03">See supra</E>
                             footnotes 464 and 465 and accompanying text.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Website Availability Requirements.</E>
                         Covered entities that choose to rely on 
                        <PRTPAGE P="45953"/>
                        proposed Reg E-Delivery and deliver covered information through a statement of availability, rather than direct delivery, would be required to maintain a website that meets certain requirements relating to: (1) timing; (2) availability period; (3) format and retainability; and (4) continuous availability and periods of temporary unavailability. The covered entity also would be required to adopt and implement written policies and procedures reasonably designed to ensure that the covered information is made available and remains available in the manner required by the proposed rule.
                    </P>
                    <P>
                        Regarding the availability of covered information, we anticipate that firms using e-delivery under the E-Delivery Guidance have generally already developed processes to identify website availability failures.
                        <SU>589</SU>
                        <FTREF/>
                         The proposed requirements for Reg E-Delivery therefore are likely to be generally consistent with existing practices of most covered entities. For covered entities where this may not be the case, these requirements would benefit covered recipients of such covered entities by helping ensure that they can access the covered information in a timely manner and that they have both the time to review the information on the website and the ability to retain the covered information permanently for their records if they choose. The requirements would further benefit covered recipients by ensuring that the covered information would be available in a format that is convenient for both reading online and printing on paper, thus facilitating review of that covered information in both formats. Finally, in circumstances where a covered entity's website and covered information become temporarily unavailable, the proposed rule would benefit covered recipients by requiring protections to help ensure continuous access to the covered information.
                        <SU>590</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>589</SU>
                             
                            <E T="03">See supra</E>
                             footnotes 464 and 465 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>590</SU>
                             
                            <E T="03">See supra</E>
                             section II.C.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">2. Costs</HD>
                    <HD SOURCE="HD3">(a) Compliance Costs</HD>
                    <P>
                        Covered entities that would rely on the proposed rule would incur compliance costs associated with satisfying the conditions of the proposed new framework, including: the costs of any legal, management, administrative, IT personnel, compliance consultants, and other personnel and external resources; the costs of preparing revisions to relevant written compliance or supervisory policies and procedures; and, to the extent that covered information containing PFI is not currently e-delivered in conformity with the requirements of the proposed rule, the costs of changing how such covered information is delivered going forward, even for covered recipients already receiving e-delivery.
                        <SU>591</SU>
                        <FTREF/>
                         These compliance costs would differ depending on the extent to which related compliance processes already align with the requirements of proposed Reg E-Delivery, or where they do not align, the ease with which they can be adapted to comply. For purposes of estimating compliance costs, we assume that all covered entities that would rely on proposed Reg E-Delivery would also transition recipients to default e-delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>591</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Disclosure of E-Delivery.</E>
                         Before relying on the proposed rule to transition covered recipients to default e-delivery, a covered entity must provide a clear and conspicuous disclosure to the covered recipient that describes the covered information that will be delivered electronically to the electronic address that the covered recipient provides (or accepts to use) to receive the covered information, unless the covered recipient opts out of e-delivery. The disclosure also must describe the methods of e-delivery that may be used under the proposed rule. The covered entity need not provide this disclosure to covered recipients who receive an initial notice, or who receive e-delivery of all covered information by or on behalf of the covered entity as of the effective date of the proposed rule.
                        <SU>592</SU>
                        <FTREF/>
                         We estimate that, in the aggregate, covered entities that rely on the proposed rule would incur one-time initial costs of approximately $33 million to prepare the disclosure of e-delivery and recurring annual compliance costs estimated at $11 million (as of the first year).
                        <SU>593</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>592</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.2 and 
                            <E T="03">infra</E>
                             section IV.A.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>593</SU>
                             
                            <E T="03">See infra</E>
                             section IV.A (initial costs of $33,232,500 = 1.5 hrs. x $527.5/hr. x 42,000 covered entities; annual recurring costs of $11,077,500 = 0.5 hrs. x $527.5/hr. x 42,000 covered entities). These disclosures would have to be prepared for new covered recipients that establish relationships with the covered entity going forward, and the estimates then assume that, on an ongoing basis, covered entities would confirm from a compliance perspective that the initially prepared disclosure continues to meet the requirements of Reg E-Delivery.
                        </P>
                    </FTNT>
                    <P>In addition, covered entities may incur costs associated with delivering this disclosure. We anticipate that virtually all entities would provide this disclosure electronically when first establishing a relationship with a new covered recipient, as the disclosure would not be required to be delivered in paper form. We anticipate that the incremental costs of incorporating these disclosures into existing account-opening or similar workflows would be minimal.</P>
                    <P>
                        <E T="03">Methods of E-Delivery.</E>
                         Proposed Reg E-Delivery would permit a covered entity to use two methods of e-delivery, depending on the type of information being provided: statement of availability, and direct delivery of covered information to an electronic address.
                        <SU>594</SU>
                        <FTREF/>
                         The proposed rule includes content requirements for both the statement of availability and the direct delivery of covered information.
                        <SU>595</SU>
                        <FTREF/>
                         The permissible delivery method would depend on whether the covered information includes PFI. For covered information that does not include PFI, a covered entity would be permitted to e-deliver covered information directly to a covered recipient's electronic address. For covered information that includes PFI, a covered entity would not be permitted to deliver this information directly to an electronic address but instead would be required to deliver a statement of availability to the covered recipient's electronic address.
                        <SU>596</SU>
                        <FTREF/>
                         The covered entity would deliver the statement of availability or the direct delivery of covered information to the covered recipient no later than the date by which the covered information is required to be delivered under the Federal securities laws.
                        <SU>597</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>594</SU>
                             
                            <E T="03">See supra</E>
                             sections II.B.3 and II.B.4.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>595</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>596</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.5.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>597</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.6.
                        </P>
                    </FTNT>
                    <P>
                        We estimate that, in the aggregate, covered entities would incur one-time initial costs of approximately $199 million associated with preparing a template statement of availability and/or a template for the direct delivery of covered information, meeting the requirements of Reg E-Delivery, and recurring annual costs of approximately $66 million for confirming, from a compliance perspective, that the initially-prepared templates continue to meet the requirements of Reg E-Delivery.
                        <SU>598</SU>
                        <FTREF/>
                         This estimate reflects the average cost of compliance across covered entities; these costs would be lower for covered entities delivering proxy statements, information statements, or annual reports to security holders under Regulations 14A and 14C by means of a statement of availability because the content required in a statement of availability is similar to the 
                        <PRTPAGE P="45954"/>
                        content required in a notice of internet availability under current rule 14a-16.
                    </P>
                    <FTNT>
                        <P>
                            <SU>598</SU>
                             
                            <E T="03">See infra</E>
                             section IV.B ($199,395,000 = 9 hrs. × $527.5/hr. ×  42,000 covered entities; $66,465,000 = 3 hrs. ×  $527.5/hr. × 42,000 covered entities).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Obligation of Covered Entities To Provide Paper Copies of Covered Information and Permit Opting Out of E-Delivery.</E>
                         Covered entities that choose to rely on the proposed rule would be required to provide paper delivery at no extra charge to any covered recipient who requests paper delivery.
                        <SU>599</SU>
                        <FTREF/>
                         We estimate that, in the aggregate, covered entities would incur one-time initial costs of approximately $33 million,
                        <SU>600</SU>
                        <FTREF/>
                         and recurring annual costs of $32 million per year, which includes the paper and mailing costs related to the free delivery of documents upon request.
                        <SU>601</SU>
                        <FTREF/>
                         This estimate reflects the average cost of compliance across covered entities; these costs would be lower for covered entities delivering proxy statements, information statements, or annual reports to security holders under Regulations 14A and 14C because those entities must provide paper copies for free under current rule 14a-16.
                    </P>
                    <FTNT>
                        <P>
                            <SU>599</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.7.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>600</SU>
                             
                            <E T="03">See infra</E>
                             section IV.C $33,232,500 = 1.5 hrs. ×  $527.5/hr. ×  42,000 covered entities.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>601</SU>
                             
                            <E T="03">See infra</E>
                             section IV.C $32,035,500 = (0.5 hrs. ×  $527.5/hr. + $500 printing and mailing cost) × 42,000 covered entities).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Identifying and Remediating E-Delivery Failures.</E>
                         Covered entities that choose to rely on the proposed rule would be required to adopt and implement written policies and procedures reasonably designed to identify and remediate failed electronic delivery.
                        <SU>602</SU>
                        <FTREF/>
                         These policies and procedures would be designed so that, if any failed electronic delivery is identified, the covered entity would under the conditions of the proposed rule promptly take reasonable remediation steps, including obtaining a new electronic address or delivering the covered information in paper format until the covered recipient provides a new electronic address. We estimate that, in aggregate, covered entities would incur one-time initial costs of $66 million and recurring annual costs of $22 million to adopt and implement written policies and procedures reasonably designed to identify and remediate failed electronic delivery.
                        <SU>603</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>602</SU>
                             
                            <E T="03">See infra</E>
                             section II.B.9.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>603</SU>
                             
                            <E T="03">See infra</E>
                             section IV.D (one-time initial costs of $66,465,000 = 3 hrs. ×  $527.5/hr. × 42,000 covered entities; annual recurring costs of $22,155,000 = 1 hrs. × $527.5/hr. ×  42,000 covered entities).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Website Availability of Covered Information.</E>
                         Proposed Reg E-Delivery would require covered entities that rely on the proposed rule and deliver covered information through a statement of availability, rather than direct delivery, to maintain a website that meets certain requirements.
                        <SU>604</SU>
                        <FTREF/>
                         The covered entity also would be required to adopt and implement written policies and procedures reasonably designed to ensure that the covered information is made available and remains available in the manner required by the proposed rule.
                        <SU>605</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>604</SU>
                             
                            <E T="03">See supra</E>
                             section II.C.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>605</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        We estimate that, in aggregate, covered entities would incur one-time initial costs of $114 million and recurring annual costs of $51 million to comply with the website availability requirements of the proposed rule.
                        <SU>606</SU>
                        <FTREF/>
                         This is based on the estimate that 42,000 covered entities would choose to rely on the rule and that all would incur the cost of complying with these website requirements. However, Reg E-Delivery does not require the use of a website if a covered entity uses the direct delivery approach for covered information, so some covered entities would not incur website-related costs.
                        <SU>607</SU>
                        <FTREF/>
                         In addition, based on our understanding of current e-delivery practices,
                        <SU>608</SU>
                        <FTREF/>
                         we anticipate that covered entities that currently make covered information available on their website would typically already have websites in place that substantially meet the proposed requirements. Accordingly, to the extent that covered entities already have such websites in place or do not rely on a website to deliver covered information, their incremental compliance costs associated with this requirement would be lower.
                        <SU>609</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>606</SU>
                             
                            <E T="03">See infra</E>
                             section IV.E (one-time initial costs of $114,345,000 = 4.5 hrs. ×  $605/hr. ×  42,000 covered entities; annual recurring costs of $50,820,000 = 2 hrs. × $605/hr. × 42,000 covered entities).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>607</SU>
                             For example, covered information by investment companies and corporate issuers would not include PFI, and thus those covered entities could choose to rely on the direct delivery approach for all covered documents.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>608</SU>
                             
                            <E T="03">See supra</E>
                             footnote 457 and accompanying text. In addition, covered entities delivering proxy statements, information statements, or annual reports to security holders under Regulations 14A and 14C must post those materials on a website under current rule 14a-16, regardless of whether a statement of availability (or notice of internet availability under current rule 14a-16) is used.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>609</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.5. (Many covered entities have already chosen to use an approach akin to the proposal's statement of availability E-delivery method, instead of direct delivery, to address confidentiality and security concerns that arise in connection with the e-delivery of covered information containing PFI or other non-public information.)
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Initial and Follow-up Notices.</E>
                        <SU>610</SU>
                        <FTREF/>
                         Proposed Reg E-Delivery would require the covered entities that choose to rely on the proposed rule to transition covered recipients to default E-delivery to prepare and send out notices to covered recipients currently receiving paper as part of the process of transition to E-delivery. During the transition process, the covered entity would be required to deliver an initial notice to covered recipients receiving paper for whom the covered entity has an electronic address, and could be obligated to send a follow-up notice to any covered recipient that does not update or confirm an electronic address at any time after receiving the initial notice.
                        <SU>611</SU>
                        <FTREF/>
                         Both such notices would be delivered in paper.
                    </P>
                    <FTNT>
                        <P>
                            <SU>610</SU>
                             
                            <E T="03">See supra</E>
                             section II.D.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>611</SU>
                             
                            <E T="03">See supra</E>
                             section II.B.6.
                        </P>
                    </FTNT>
                    <P>
                        We anticipate that virtually all covered entities that choose to rely on the proposed rule would also choose to transition covered recipients to default e-delivery to take advantage of the associated savings in paper and mailing costs. These covered entities would incur costs of preparing and reviewing the notices that they are required to send to covered recipients who have not expressed a preference for electronic delivery. As the two different notices require nearly identical information and would vary little, we anticipate that covered entities would prepare them simultaneously. We estimate that, in the aggregate, covered entities would incur initial one-time costs of approximately $66 million for preparing and reviewing these notices.
                        <SU>612</SU>
                        <FTREF/>
                         These covered entities would also incur costs of paper, printing, and postage to deliver the notices to covered recipients, with aggregate costs estimated at $217 million in the first year after the proposed rule goes into effect.
                        <SU>613</SU>
                        <FTREF/>
                         These estimates are based on the assumption that covered entities would send the same number of notices for each of the initial and follow-up notices. If a covered entity chooses not to send the follow-up notice to a covered recipient who updates or confirms an electronic address after receiving the initial notice, the cost would be lower.
                    </P>
                    <FTNT>
                        <P>
                            <SU>612</SU>
                             
                            <E T="03">See infra</E>
                             section IV.F ($66,465,000 = 3 hrs. ×  $527.5/hr. ×  42,000 covered entities).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>613</SU>
                             
                            <E T="03">See infra</E>
                             section IV.F (“We estimate that the annual printing and mailing costs for the transition notices would be approximately $217,000,000 in the first year and $0 in subsequent years”).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Systems.</E>
                         Meeting the requirements of the proposed rule would entail establishing relevant operations and compliance systems. These systems would need to be designed to permit covered recipients to opt out of E-delivery, to implement and track covered recipients' delivery preferences, and to detect invalid or inoperable electronic addresses.
                    </P>
                    <P>
                        It is our understanding that many covered entities already maintain operations and systems that can be 
                        <PRTPAGE P="45955"/>
                        easily adopted to comply with the requirements of the proposed rule.
                        <SU>614</SU>
                        <FTREF/>
                         The incremental costs of compliance related to systems may thus be quite limited for covered entities relying on Reg E-Delivery. In addition, for any covered entity that does not already have such systems in place, compliance costs may be mitigated if the entity relies, or is able to rely, on a third party or intermediary for system services, thereby gaining access to economies of scale and scope. We do not have access to data on whether the requirements of the proposed rule regarding methods ofe-delivery  and system requirements would require covered entities to make substantial changes to their existing systems or to what extent any such burden may vary across covered entities according to whether they already have such systems in place, and therefore we do not quantify these costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>614</SU>
                             
                            <E T="03">See, e.g., supra</E>
                             footnote 198.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Rule 30e-3.</E>
                         Covered entities that currently rely on rule 30e-3 would have to make further updates to their systems and procedures to reflect that the shareholder report transmission approach under rule 30e-3 is no longer permitted. However, we do not anticipate that the costs of transitioning to Reg E-Delivery for covered entities that currently rely on rule 30e-3 would be significantly different than the costs for entities that do not rely on rule 30e-3 under the baseline. Specifically, we believe that the costs associated with rescinding current operating procedures related to the implementation of rule 30e-3 would be minimal, and that the costs of developing new policies and systems to rely on Reg E-Delivery would not be greater than for other entities relying on Reg E-Delivery. In addition, some funds that rely on rule 30e-3 may already post certain fund materials on websites that are maintained by the fund, a broker-dealer firm, or a third-party service provider of the fund or intermediary, which would mitigate the incremental compliance costs for these funds associated with the website requirements of Reg E-Delivery.
                        <SU>615</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>615</SU>
                             
                            <E T="03">See</E>
                             Optional internet Availability of Investment Company Shareholder Reports, Investment Company Release No. 33115 (June 22, 2018) [83 FR 2918 (June 22, 2018)] (discussing web-hosting conditions).
                        </P>
                    </FTNT>
                    <P>However, some funds that currently rely on rule 30e-3 may not have electronic addresses for all investors. To the extent this is the case, those funds would not be able to rely on Reg E-Delivery and instead would have to deliver shareholder reports in paper or obtain these customers' electronic addresses. We do not have data on the extent to which funds currently rely on rule 30e-3, or the extent to which those funds have electronic addresses for their customers. We are therefore unable to quantify the aggregate costs associated with this effect.</P>
                    <P>
                        <E T="03">E-SIGN Act.</E>
                         Covered entities that choose to rely on proposed Reg E-Delivery would need to make further updates to their systems and policies and procedures to e-deliver any covered information that would otherwise be subject to the consumer consent requirements of the E-SIGN Act, in order to remove the implementation of those requirements (from which we are proposing an exemption). We believe that the costs to covered entities to update current systems and operating procedures to remove the implementation of the E-SIGN Act's consumer consent requirements would be minimal, and that the costs of developing new policies and systems to rely on Reg E-Delivery for delivering covered information subject to the consumer consent requirements of the E-SIGN Act would not be greater than for other covered entities relying on Reg E-Delivery.
                    </P>
                    <HD SOURCE="HD3">(b) Fees and Costs To Deliver Covered Documents Electronically</HD>
                    <P>Covered entities may face costs of usinge-delivery  as a substitute for paper mail delivery in reliance on the proposed rule. The cost of usinge-delivery  could include the cost of paying a third party for the service of reliably forwarding covered information to covered recipients. The third party may require an initial and/or recurring payment as compensation for its setup or fixed cost of providing this service. The third party also could charge the covered entity on a per-unit (per e-delivery ) basis to cover its costs.</P>
                    <P>The form and magnitude of a covered entity's payment to a third party for increased use ofe-delivery  under the proposed rule may depend on whether the third party has sole access to the recipient's contact information (and the covered entity does not have such access), as occurs when a shareholder owns shares in a company through an intermediated account and thus in “street name,” through a nominee, such as a broker-dealer or bank. The costs ofe-delivery  would in that instance include costs of compensating the nominee for the service of reliably forwarding the covered information to the covered recipient.</P>
                    <P>
                        The fees that some covered entities pay broker-dealers to forward covered information to intermediated account-holders are the subject of SRO rules, which set forth maximum rates for compensating broker-dealers for their expenses incurred in forwarding, on behalf of issuers including funds, materials to customers that hold securities in street name.
                        <SU>616</SU>
                        <FTREF/>
                         There is a maximum “preference management fee” set forth in the SRO rate schedule that applies with respect to each account for which the nominee has eliminated the need to send materials in paper format.
                        <SU>617</SU>
                        <FTREF/>
                         It varies with the type of covered information. The preference management fee for e-delivery of a set of corporate proxy materials is $0.32,
                        <SU>618</SU>
                        <FTREF/>
                         or approximately 4.1% of a recent industry estimate of the cost of paper, printing and postage for delivery of corporate proxy materials.
                        <SU>619</SU>
                        <FTREF/>
                         The preference management fee is $0.10 for e-delivery of fund shareholder reports, prospectuses and summary prospectuses and $0.16 for e-delivery of fund proxy voting materials,
                        <SU>620</SU>
                        <FTREF/>
                         or 13.5% and 6.8%, respectively, of the estimated costs of paper, printing and postage for delivery of those materials from a recent industry study.
                        <SU>621</SU>
                        <FTREF/>
                         The 
                        <PRTPAGE P="45956"/>
                        study also provided estimates of the preference management fees that funds would pay under SRO rules for the service of forwarding covered information in electronic form that is currently sent by paper mail to their covered recipients. In the aggregate, the study estimated that funds would be required to pay an additional $11-$25 million annually in incremental preference management fees, if they were to transition all of their paper-mail deliveries to e-delivery.
                        <SU>622</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>616</SU>
                             
                            <E T="03">See</E>
                             NYSE Rule 451 and FINRA Rule 2251. There are maximum rates in these rules that apply to any method of distribution, including paper and electronic delivery.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>617</SU>
                             
                            <E T="03">Id.</E>
                             Nominees, or the service provider to which they may outsource the distribution service, typically charge the maximum allowable rates under the SRO rate schedule. 
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 90303, SR-NYSE-2020-96 (Nov. 13, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>618</SU>
                             NYSE Rule 451.90(4)(a) provides for a “Preference Management Fee” of “32 cents” “[f]or each set of proxy materials described in Section 1(b).” NYSE Rule 451.90(1(b) provides a definition of “set of proxy materials” (“proxy statement form of proxy and annual report when processed as a unit”). 
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 90303, SR-NYSE-20202-96, at 31 (Nov. 13, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>619</SU>
                             The estimate of 4.1% (= $0.32/$7.87) is obtained by dividing the preference management fee ($0.32) by an industry estimate of the cost of mailing the full-set paper proxy package ($7.87), which is the sum of the $4.82 for printing and $3.05 for postage (
                            <E T="03">See</E>
                             Broadridge Proxy Season Key Statistics &amp; Performance Rating, 2025, at 3, 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.broadridge.com/_assets/pdf/2025proxykeystats_report.pdf</E>
                            ).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>620</SU>
                             
                            <E T="03">See</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, app. B tbl3 (stating a preference management fee of $0.16 associated with the delivery of fund proxy voting materials); 
                            <E T="03">see also</E>
                             NYSE Rule 451(4)(a) (preference management fees for proxy materials if the account is a managed account) and NYSE Rule 451.90(4)(b) (setting preference management fee rates for investment company shareholder reports, prospectuses, and proxy materials distributed through broker and bank nominee accounts).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>621</SU>
                             The estimate of 13.5% for shareholder reports and prospectuses, including summary prospectuses, is obtained by dividing the preference management fee ($0.10) by a weighted average of the “print unit cost” and the “mail unit cost” for shareholder reports and prospectuses, as reported in the Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, app. B, tbl2. (0.135 = $0.10/((196 x $0.80) + (43.5 x $0.48))/(196 + 43.5)). The estimate of 6.8% for proxy voting materials is obtained by dividing the preference management fee ($0.16) for proxy voting materials by the sum of the “print unit cost” ($1.93) and the midpoint of the “mail unit cost” ($0.41) for mailing 
                            <PRTPAGE/>
                            fund proxy voting materials from 
                            <E T="03">id.</E>
                             (0.068 =$0.16/($1.93 + $0.41)).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>622</SU>
                             
                            <E T="03">See</E>
                             Nov. 2025 ICI Letter, 
                            <E T="03">supra</E>
                             footnote 17, app. B tbl3.
                        </P>
                    </FTNT>
                    <P>
                        The preference management fees set forth in the SRO rate schedule could apply to the use of e-delivery by corporations and investment companies, to the extent they must rely on nominees to forward materials in electronic form on their behalf. To estimate the cost of the preference management fee payments by corporations from increased use of e-delivery instead of paper mail under the proposed rule, we obtained proprietary data from a service provider on the estimated total cost to corporations of using paper mail to deliver proxy materials. We analyzed the data using the assumptions that 90.25% of mail deliveries of corporate proxy materials would default to e-delivery under the proposed rule 
                        <SU>623</SU>
                        <FTREF/>
                         and that corporations would pay the preference management fee from the SRO rate schedule of $0.32 for e-delivery of proxy voting materials. Based on this analysis, we estimate that the cost of the preference management fee to corporations relying on the proposed rule to deliver proxy voting materials to covered recipients would be $7 million per year.
                    </P>
                    <FTNT>
                        <P>
                            <SU>623</SU>
                             
                            <E T="03">See supra</E>
                             footnote 562 and accompanying text.
                        </P>
                    </FTNT>
                    <P>
                        To estimate the cost of the preference management fee payments by investment companies from the increased use of e-delivery instead of paper mail under the proposed rule, we obtained data from an industry survey on the preference management fees that investment companies pay currently, by type of covered information, the number of mailings of covered information that occur in paper form currently, and the percentage of those mailings that are to intermediated accounts. We analyzed the data using the assumption that 90.25% of mail deliveries by investment companies would default to e-delivery under the proposed rule and that investment companies would pay the preference management fees from the SRO rate schedule of $0.10 for e-delivery of fund shareholder reports, prospectuses, and summary prospectuses and $0.16 for e-delivery of fund proxy voting materials. Based on this analysis, we estimate that the cost of the preference management fee to investment companies relying on the proposed rule to delivery fund proxy voting materials, shareholder reports, and prospectuses, including summary prospectuses, to covered recipients would be $20 million per year.
                        <SU>624</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>624</SU>
                             To obtain the estimate of $20.0 million per year, we multiply the reduction factor (0.9025) by an estimate of the number of investment company mailings of covered information annually (272.2 million) from Table 2 and estimates of the “percentage of intermediated mailings” (76%, the mid-point of the range “67% to 85%”) and the weighted average of the suppression management fee for such mailings from 
                            <E T="03">id.</E>
                             ($0.1072 = $0.16 × 32.5) + ($0.10 × (196 + 43.5))/272.2) from 
                            <E T="03">id.</E>
                             ($20.010 million = 0.0925 ×  272.2 million × 0.76 ×  $0.1072).
                        </P>
                    </FTNT>
                    <P>
                        We thus estimate that the combined cost of the preference management fee to corporations and investment companies would be $27 million per year.
                        <SU>625</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>625</SU>
                             $25 million = $7 million (for corporations) + $20 million (for investment companies).
                        </P>
                    </FTNT>
                    <P>In cases where the covered entity does not rely on a third party to forward covered information to covered recipients, the covered entity may incur costs of e-delivery in the form of costs of maintaining internal technological systems that are sufficient to comply with the requirements of the proposed rule relating to the reliability of e-delivery. However, as most such entities that would increase their reliance on electronic delivery under the proposed rule are likely to already have such systems in place to effectuate existing electronic deliveries, we anticipate that for those entities, any marginal cost of making additional electronic deliveries would not be significant.</P>
                    <HD SOURCE="HD3">(c) Costs to Covered Recipients</HD>
                    <P>
                        Some costs of the proposed Reg E-Delivery would be borne by covered recipients who prefer paper delivery. First, under the proposed rule, a covered recipient may choose to request paper delivery from a covered entity that chooses to rely on the proposed rule. The covered recipients could incur costs (
                        <E T="03">e.g.,</E>
                         time commitment) in making the request for paper delivery.
                        <SU>626</SU>
                        <FTREF/>
                         Second, a covered recipient who prefers paper may nevertheless choose not to request paper. In that instance, the mismatch between the actual and preferred form of delivery would be a cost of the proposed rule. This mismatch could impede the review and usefulness of covered information for some of these covered recipients.
                        <SU>627</SU>
                        <FTREF/>
                         To the extent that covered recipients regard the ability to print the covered information as a substitute for receiving paper delivery, they would weigh the cost of printing the information against the cost of communicating their preferences or adjusting to e-delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>626</SU>
                             Alternatively, where a covered recipient has not provided a covered entity with an email address under the baseline, the covered recipient may simply decide to continue to not provide such an email address to that covered entity, in which instance the covered recipient will continue to receive paper delivery even when the covered entity relies on the proposed rule. 
                            <E T="03">See</E>
                             section II.B. There would be no additional cost for requesting paper deliver in these circumstances.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>627</SU>
                             For example, one working paper found evidence that switching from paper to electronic dissemination of proxy statements leads to a decrease in voter participation; 
                            <E T="03">see</E>
                             Rachel Geoffroy, 
                            <E T="03">Electronic Proxy Statement Dissemination and Shareholder Monitoring</E>
                             (Working Paper 2018), 
                            <E T="03">available at https://ssrn.com/abstract=3264846</E>
                             (examining how the means of disseminating proxy statements affects shareholder monitoring and estimating that a switch from paper to electronic dissemination reduces total voting participation by about 1% to 2%).
                        </P>
                    </FTNT>
                    <P>
                        The magnitude of these costs to covered recipients would vary across recipients depending on the strength of their preferences for paper relative to e-delivery and on how easily they are able to communicate their preferences under the proposed rule. For example, recipients who are indifferent between paper and e-delivery need not incur any such costs. Conversely, recipients that have provided the covered entity with an electronic address but prefer paper delivery and face greater burdens (
                        <E T="03">e.g.,</E>
                         time constraints, other frictions) in communicating this preference could incur more significant costs from the change in the delivery default.
                        <SU>628</SU>
                        <FTREF/>
                         These recipients would have to (1) incur the burden of requesting paper from covered entities that rely on the proposed rule, (2) experience the inconvenience or disutility of receiving e-delivery when they prefer paper or (3) incur the cost of printing the electronically delivered documents themselves.
                    </P>
                    <FTNT>
                        <P>
                            <SU>628</SU>
                             
                            <E T="03">See</E>
                             section II.B.7.
                        </P>
                    </FTNT>
                    <P>
                        The costs from the proposed rule on covered recipients who prefer paper delivery and would receive default e-delivery would be mitigated to some extent by the provisions of the proposed rule that are designed to permit and ensure easy communication of preferences. For example, every time covered information is delivered via e-delivery under the proposed rule, the e-delivery includes information about how to request paper, so these instructions would be frequently communicated to covered recipients.
                        <SU>629</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>629</SU>
                             
                            <E T="03">See</E>
                             sections II.B.3, II.B.4, II.B.7, II.D.
                        </P>
                    </FTNT>
                    <P>
                        There may also be costs to covered recipients receiving e-delivery of 
                        <PRTPAGE P="45957"/>
                        covered documents. E-delivery may present certain risks to covered recipients, including privacy and cybersecurity risks associated with delivering PFI by e-delivery; and website communication system outages.
                        <SU>630</SU>
                        <FTREF/>
                         Any such costs would be mitigated by the safeguards that are designed to address these risks.
                        <SU>631</SU>
                        <FTREF/>
                         In addition, it may be more costly for some covered recipients to access covered information that contains PFI to the extent complying with the requirements of proposed Reg E-Delivery make it more difficult for the covered recipient to receive and make use of the covered information. For example, some covered recipients who do not currently access information containing PFI by going into the covered entity's website would be required to do so and enter their user ID and password (or other process reasonably designed to safeguard the PFI) under the proposed rule, and this could be a cost of the rule for those covered recipients.
                    </P>
                    <FTNT>
                        <P>
                            <SU>630</SU>
                             
                            <E T="03">See supra</E>
                             footnote 60.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>631</SU>
                             
                            <E T="03">See supra</E>
                             sections II.B and II.C.
                        </P>
                    </FTNT>
                    <P>
                        For some recipients who benefit from storing physical copies of documents, the migration from paper to electronic delivery as a result of the proposed rule could introduce costs arising from the extra steps (
                        <E T="03">e.g.,</E>
                         downloading and printing) that the recipient would need to take to retrieve and retain the document and associated disincentive that this may create to retain the document.
                    </P>
                    <P>Finally, as with cost savings, to the extent that covered entities pass through their compliance cost and other costs to deliver covered documents (including fees) to their covered recipients, then these covered recipients would also experience increased costs arising from their relationship with covered entities under the proposed rule.</P>
                    <HD SOURCE="HD3">3. Monetized Benefits and Costs</HD>
                    <P>
                        In this section, we present estimates of aggregate monetized benefits and costs. These totals include only benefits and costs that are monetized in the economic analysis and thus do not encompass all of the proposed rule's benefits and costs. For example, we were not able to quantify the burden in time and attention for certain covered recipients who prefer to receive paper to opt out of default e-delivery.
                        <SU>632</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>632</SU>
                             
                            <E T="03">See supra</E>
                             section III.C.2.c.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Initial and Annual Aggregate Monetized Benefits and Costs</HD>
                    <P>
                        We estimate that the proposed rule would yield aggregate annual cost savings (
                        <E T="03">i.e.,</E>
                         benefits) for covered entities of approximately $463 million annually.
                        <SU>633</SU>
                        <FTREF/>
                         This figure is based on a set of assumptions, including that 95% of covered entities would choose to rely on the proposed rule and that 95% of current recipients of paper mailings from those covered entities would transition to e-delivery.
                        <SU>634</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>633</SU>
                             
                            <E T="03">See supra</E>
                             section III.C.1.a.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>634</SU>
                             
                            <E T="03">See id.</E>
                             and 
                            <E T="03">supra</E>
                             footnote 562 and accompanying text.
                        </P>
                    </FTNT>
                    <P>In section III.C.2.a, we provided estimates of annual aggregate compliance costs to covered entities that we estimate would choose to rely on proposed Reg E-Delivery across certain provisions of the proposed rule. In section III.C.2.b, we provide estimates of annual aggregate preference management fees. As shown in Table 4, we estimate initial one-time costs to covered entities of $511 million, and annual costs of $426 million in the first year and $209 million in the second year onward.</P>
                    <GPOTABLE COLS="4" OPTS="L2,nj,i1" CDEF="s150,10,10,10">
                        <TTITLE>Table 4—Aggregate Monetized Cost Estimates By Source </TTITLE>
                        <TDESC>[Millions of $]</TDESC>
                        <BOXHD>
                            <CHED H="1">
                                <E T="03">Source of cost</E>
                            </CHED>
                            <CHED H="1">Initial costs</CHED>
                            <CHED H="1">Annual costs</CHED>
                            <CHED H="2">Year 1</CHED>
                            <CHED H="2">
                                Year 2
                                <LI>onward</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">
                                <E T="03">Disclosure of E-Delivery (for new covered recipients)</E>
                            </ENT>
                            <ENT>33</ENT>
                            <ENT>11</ENT>
                            <ENT>11</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                <E T="03">E-Delivery Methods</E>
                            </ENT>
                            <ENT>199</ENT>
                            <ENT>66</ENT>
                            <ENT>66</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                <E T="03">Delivery in Paper on Request</E>
                            </ENT>
                            <ENT>33</ENT>
                            <ENT>32</ENT>
                            <ENT>32</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                <E T="03">Identifying and Remediating E-Delivery Failures</E>
                            </ENT>
                            <ENT>66</ENT>
                            <ENT>22</ENT>
                            <ENT>22</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                <E T="03">Website Availability</E>
                            </ENT>
                            <ENT>114</ENT>
                            <ENT>51</ENT>
                            <ENT>51</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">
                                <E T="03">Initial and Follow-up Notices (for covered recipients currently receiving paper as of Reg E-Delivery effective date)</E>
                            </ENT>
                            <ENT>66</ENT>
                            <ENT>217</ENT>
                            <ENT>0</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">
                                <E T="03">Preference Management Fees</E>
                            </ENT>
                            <ENT>0</ENT>
                            <ENT>27</ENT>
                            <ENT>27</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">
                                <E T="03">Total</E>
                            </ENT>
                            <ENT>511</ENT>
                            <ENT>426</ENT>
                            <ENT>209</ENT>
                        </ROW>
                        <TNOTE>
                            <SU>a</SU>
                             This table provides a summary of the costs associated with each of the compliance conditions (sources of compliance cost) discussed in section III.C.2.a. The cost of compliance with the “Notices” requirement is zero in years 2 and onward because notices would be sent out only in year 1.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        We summarize our estimates of aggregate monetized benefits and costs in Table 5.
                        <SU>635</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>635</SU>
                             
                            <E T="03">See infra</E>
                             Table 6 for present value of monetized benefits and costs over 10 years.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s100,10,10,10">
                        <TTITLE>Table 5—Aggregate Monetized Benefits and Costs Estimates</TTITLE>
                        <TDESC>[Millions of $]</TDESC>
                        <BOXHD>
                            <CHED H="1">Aggregated monetized effects</CHED>
                            <CHED H="1">
                                Initial
                                <LI>effects</LI>
                            </CHED>
                            <CHED H="1">Year 1</CHED>
                            <CHED H="1">
                                Year 2
                                <LI>onward</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Benefits</ENT>
                            <ENT>0</ENT>
                            <ENT>463</ENT>
                            <ENT>463</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Costs</ENT>
                            <ENT>511</ENT>
                            <ENT>426</ENT>
                            <ENT>209</ENT>
                        </ROW>
                    </GPOTABLE>
                    <PRTPAGE P="45958"/>
                    <HD SOURCE="HD3">(b) Present Values and Annualized Values of Aggregate Monetized Benefits and Costs</HD>
                    <P>
                        Consistent with the requirements of Executive Order 12866, the Commission reports estimated total monetized benefits and costs for all affected entities in two additional ways specified in OMB Circular A-4.
                        <SU>636</SU>
                        <FTREF/>
                         These two presentations address the fact that the benefits and costs of the proposed rule accrue at different points in time, and that benefits and costs realized sooner are generally more valuable than those realized later.
                        <SU>637</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>636</SU>
                             
                            <E T="03">See</E>
                             E.O. No. 12866 (Sept. 30, 1993), 58 FR 51735, 51741 (Oct. 4, 1993) (requiring agencies to provide an analysis of benefits, costs, and regulatory alternatives to OIRA for significant regulatory actions); OMB, Circular A-4, at 31-34, 45 (Sept. 17, 2003) (providing guidance to agencies regarding compliance with E.O. 12866); 
                            <E T="03">see also</E>
                             E.O. No. 14215 (Feb. 18, 2025), 90 FR 10447, 10448 (Feb. 24, 2025) (requiring independent agencies to comply with E.O. No. 12866). In addition, E.O. 14192 requires agencies to provide their best approximation of the total costs or savings associated with each new regulation or repealed regulation consistent with the analyses required by E.O. 12866. 
                            <E T="03">See</E>
                             E.O. No. 14192 (Jan. 31, 2025), 90 FR 9065, 9066 (Feb. 6, 2025).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>637</SU>
                             
                            <E T="03">See</E>
                             Circular A-4, at 32.
                        </P>
                    </FTNT>
                    <P>
                        We report (1) the present values of expected benefits and costs that are monetized in our economic analysis, aggregated across all affected entities over a 10-year time horizon starting in 2026, and (2) the annualized values over the same time horizon, derived from the present values. This time horizon represents the period over which the principal benefits and costs that are monetized in the Economic Analysis are expected to accrue.
                        <SU>638</SU>
                        <FTREF/>
                         The present values and annualized values account for the timing of benefits and costs through discounting, which is a procedure that accounts for the time value of money.
                        <SU>639</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>638</SU>
                             
                            <E T="03">See id.</E>
                             at 31 (stating that “[t]he ending point should be far enough in the future to encompass all the significant benefits and costs likely to result from the rule”). For the purposes of this analysis, we assume the effective date of the proposal, as well as the start year for the analysis's time horizon, is the present year.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>639</SU>
                             
                            <E T="03">See id.</E>
                             at 32 (“The Rationale for Discounting”) and 45 (“Treatment of Benefits and Costs over Time”); 
                            <E T="03">see also</E>
                             OIRA, Regulatory Impact Analysis: A Primer, at 11 (Aug. 15, 2011), 
                            <E T="03">available at https://www.reginfo.gov/public/jsp/Utilities/circular-a-4_regulatory-impact-analysis-a-primer.pdf</E>
                             (“To provide an accurate assessment of benefits and costs that occur at different points in time or over different time horizons, an agency should use discounting. Agencies should provide benefit and cost estimates using both 3 percent and 7 percent annual discount rates expressed as a present value as well as annualized.”); Harvey S. Rosen &amp; Ted Gayer, Public Finance 151 (8th ed. 2008) (defining present value as “the value today of a given amount of money to be paid or received in the future”).
                        </P>
                    </FTNT>
                    <P>Throughout this Economic Analysis, we have provided estimates of the benefits and costs of the proposed rule on an annual basis. The monetized benefits are the cost savings from the proposed rule that were presented in section III.C.1.a. The monetized costs are the compliance costs and fee costs from the proposed rule that were presented in sections III.C.2.a and III.C.2.b, respectively.</P>
                    <P>Table 6 provides the present discounted values of these monetized annual benefits and costs. The analysis uses annual real discount rates of three percent and seven percent over a 10-year time horizon, starting in 2026. We estimate that the present value of total monetized benefits is about $4,008 million using a three percent discount rate and about $3,364 million using a seven percent discount rate. We estimate that the present value of total monetized costs is about $2,534 million using a three percent discount rate and about $2,239 million using a seven percent discount rate.</P>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s100,10,10">
                        <TTITLE>Table 6—Present Value of Monetized Benefits and Costs Over 10 Years From 2026 to 2035</TTITLE>
                        <TDESC>
                            [Millions of 2026 dollars] 
                            <SU>a</SU>
                        </TDESC>
                        <BOXHD>
                            <CHED H="1">
                                Estimated effects 
                                <SU>b</SU>
                            </CHED>
                            <CHED H="1">
                                3% real
                                <LI>discount rate</LI>
                            </CHED>
                            <CHED H="1">
                                7% real
                                <LI>discount rate</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Benefits</ENT>
                            <ENT>$4,008</ENT>
                            <ENT>$3,364</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Costs</ENT>
                            <ENT>2,534</ENT>
                            <ENT>2,239</ENT>
                        </ROW>
                        <TNOTE>
                            <SU>a</SU>
                             This Table includes only benefits and costs that are monetized. As discussed in this economic analysis, there are other benefits and costs that we are not able to monetize.
                        </TNOTE>
                        <TNOTE>
                            <SU>b</SU>
                             For each discount rate, the present value calculations are based on these assumptions: (i) all one-time monetized costs are incurred immediately and not discounted; (ii) all recurring annual monetized benefits and costs begin to accrue in the first year in which affected entities rely on the proposed rule; (iii) recurring monetized benefits and costs occur in a steady stream. We use a mid-year discount rate.
                        </TNOTE>
                    </GPOTABLE>
                    <P>
                        Table 7 reports annualized aggregate monetized benefits and costs using real discount rates of 3 percent and 7 percent over a 10-year horizon.
                        <SU>640</SU>
                        <FTREF/>
                         The lump sum present values of aggregate monetized benefits and costs reported in Table 6 are converted in Table 7 into a constant stream of annualized benefits and costs over a 10-year time horizon, starting in 2026.
                        <SU>641</SU>
                        <FTREF/>
                         Annualized benefits and costs may differ from the sum of recurring monetized annual benefits and costs discussed earlier in this Economic Analysis because they incorporate the timing of benefits and costs through discounting, and combine one-time and recurring benefits and costs.
                        <SU>642</SU>
                        <FTREF/>
                         We estimate that annualized total monetized benefits are about $463 million per year using a three percent discount rate and about $463 million per year using a seven percent discount rate. We estimate that annualized total monetized costs are about $293 million per year using a three percent discount rate and about $308 million per year using a seven percent discount rate.
                    </P>
                    <FTNT>
                        <P>
                            <SU>640</SU>
                             This approach is consistent with the recommended treatment of benefits and costs over time in Circular A-4. 
                            <E T="03">See id.</E>
                             at 45 (“You should present annualized benefits and costs using real discount rates of 3 and 7 percent”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>641</SU>
                             For each discount rate, the annualized monetized benefits (costs, respectively) in Table 7 represent the constant annual stream of benefits (costs, respectively) whose present value over the time horizon equates the corresponding present value in Table 6. 
                            <E T="03">See</E>
                             note a, Table 7 for additional calculation details.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>642</SU>
                             The annualized benefits and costs present these values over the 10-year time horizon, starting in the present year.
                        </P>
                    </FTNT>
                    <PRTPAGE P="45959"/>
                    <GPOTABLE COLS="3" OPTS="L2,i1" CDEF="s150,10,10">
                        <TTITLE>Table 7—Annualized Monetized Benefits and Costs Over 10 Years from 2026 to 2035</TTITLE>
                        <TDESC>
                            [Millions of 2026 dollars] 
                            <SU>a</SU>
                        </TDESC>
                        <BOXHD>
                            <CHED H="1">
                                Estimated effects 
                                <SU>b</SU>
                            </CHED>
                            <CHED H="1">
                                3% real 
                                <LI>discount rate</LI>
                            </CHED>
                            <CHED H="1">
                                7% real 
                                <LI>discount rate</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Benefits</ENT>
                            <ENT>$463</ENT>
                            <ENT>$463</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Cost</ENT>
                            <ENT>293</ENT>
                            <ENT>308</ENT>
                        </ROW>
                        <TNOTE>
                            <SU>a</SU>
                             This Table includes only benefits and costs that are monetized. As discussed in this economic analysis, there are other benefits and costs that we are not able to monetize.
                        </TNOTE>
                        <TNOTE>
                            <SU>b</SU>
                             For each discount rate, the annualized values are calculated by dividing the corresponding present values in Table 6 by the sum of discount factors over the time horizon. The discount factor in year t of the time horizon is equal to 1/(1 + discount rate) 
                            <SU>(t-0.5)</SU>
                            .
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD2">D. Effects on Efficiency, Competition and Capital Formation</HD>
                    <P>
                        The proposed rule is expected to lower the costs to covered entities of delivering covered information to covered recipients. Lower delivery costs would reduce the resources that covered entities devote to certain compliance activities and allow those resources to be reallocated toward alternative productive uses (such as the provision of investment advice for an adviser), thereby enhancing the efficiency of capital allocation and potentially lowering barriers to entry.
                        <SU>643</SU>
                        <FTREF/>
                         Conversely, the costs of complying with the provisions of proposed Reg E-Delivery would reduce these effects.
                        <FTREF/>
                        <SU>644</SU>
                         To the extent that any net cost savings would be proportionally larger for larger covered entities compared to smaller covered entities, this could create a competitive advantage for larger covered entities.
                        <SU>645</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>643</SU>
                             
                            <E T="03">See, e.g.,</E>
                             Craig Lewis &amp; Joshua White, 
                            <E T="03">Deregulating Innovation Capital: The Effects of the JOBS Act on Biotech Startups,</E>
                             12 Rev. Corp. Fin. Stud. 240 (2023); 
                            <E T="03">see also</E>
                             Michael Dambra &amp; Matthew Gustafson, 
                            <E T="03">Do the Burdens to Being Public Affect the Investment and Innovation of Newly Public Firms?,</E>
                             67 Mgmt. Sci. 594 (2021) (finding that the JOBS Act exemptions led to more efficient investment for newly public companies with the elimination of certain disclosure, auditing, and governance requirements for a subset of newly public firms). 
                            <E T="03">See also supra</E>
                             section III.C.1 (discussing the anticipated cost savings in printing, mailing and postage costs for covered entities that choose to implement default e-delivery). These cost savings could be partially offset by any fees and costs to deliver covered information electronically, as discussed in section III.C.2.b.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>644</SU>
                             While we anticipate that covered entities would, in aggregate, experience net cost savings as a result of relying on proposed Reg E-Delivery, some covered entities, including any covered entities that may choose not to implement default e-delivery, could experience net cost increases. 
                            <E T="03">See supra</E>
                             section III.C.2.a (discussing the costs of complying with the conditions of proposed Reg E-Delivery to e-deliver covered information, which costs are summarized in Table 4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>645</SU>
                             To the extent smaller covered entities would rely on a third-party service provider to transition to compliance with proposed Reg E-Delivery, this could mitigate any competitive disadvantage, as it would allow such covered entities to gain access to economies of scale and scope indirectly. 
                            <E T="03">See supra</E>
                             section III.C.2.a (discussing the use of service providers to access economies of scale and scope in the context of establishing operations and compliance systems).
                        </P>
                    </FTNT>
                    <P>To the extent that some covered entities pass through the associated cost savings to covered recipients, covered recipients would also benefit, such as through lower fees. Where covered recipients are investors, a reduction in their costs of investing could help promote capital formation and competition among certain covered entities for that capital.</P>
                    <P>
                        The proposed rule is expected to increase the number of covered recipients receiving electronic delivery of covered information. Some of those recipients could benefit from an enhanced review of that information,
                        <SU>646</SU>
                        <FTREF/>
                         which can improve their ability to incorporate such information in their valuation of asset prices and to make informed decisions about whether to buy or sell securities or how to allocate investments in funds. This could add to the efficiency gains of the proposed rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>646</SU>
                             
                            <E T="03">See supra</E>
                             section III.C.1.b. E-delivery also sidesteps the risk that paper mail may get lost or stolen.
                        </P>
                    </FTNT>
                    <P>
                        Conversely, the proposed rule would impose costs on covered recipients who prefer paper delivery, as they would have to either allocate their time and attention to request paper delivery or experience disutility from being migrated to e-delivery, which may include the out-of-pocket cost of printing e-delivery documents in paper form. To the extent that some of those covered recipients may nevertheless choose not to request paper, the mismatch between the actual and preferred form of delivery could impede the review and usefulness of covered information for some of these covered recipients, reducing the efficiency of informed capital allocation.
                        <SU>647</SU>
                        <FTREF/>
                         Also, by increasing the number of covered recipients that get e-delivery of covered information, the proposed rule would increase the number of covered recipients that can be exposed to certain risks associated with e-delivery, such as privacy and cybersecurity risks associated with delivering PFI by e-delivery and website communication system outages.
                        <SU>648</SU>
                        <FTREF/>
                         These effects could offset some of the efficiency gains of the proposed rule.
                    </P>
                    <FTNT>
                        <P>
                            <SU>647</SU>
                             
                            <E T="03">See supra</E>
                             footnote 627 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>648</SU>
                             
                            <E T="03">See supra</E>
                             footnote 630 and accompanying text.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">E. Reasonable Alternatives</HD>
                    <HD SOURCE="HD3">1. Charging for Paper Delivery</HD>
                    <P>The proposed rule would require covered entities to permit covered recipients to opt out of e-delivery on a document-by-document basis, free of charge. The proposed rule also would require covered entities to provide a paper copy of any covered information, free of charge upon request, for as long as the covered entity is required to retain the covered information under the Federal securities laws. We considered permitting covered entities that choose to rely on the proposed rule to charge for paper delivery at their discretion. In that instance, we could require covered entities to disclose their policy on providing paper free of charge (or as applicable, their policy for charging for opting out of e-delivery or for requests for paper copies) in the notices that they send to covered recipients of their intent to rely on the proposed rule. We also considered whether information about the cost of providing paper delivery to the recipient should be included in the notice and, if so, what other information should be disclosed about a covered entity's policies on providing paper free of charge and whether or how this should be disclosed.</P>
                    <P>
                        The effect of charging for paper delivery under Reg E-Delivery would be to provide a disincentive for recipients to opt out of e-delivery or to request paper copies of covered information, and which would likely reduce the occurrence of paper deliveries under the proposed rule. This would increase the savings in printing and mailing costs from the proposed rule and could potentially increase the number of 
                        <PRTPAGE P="45960"/>
                        covered entities that choose to rely on the proposed rule. The proposed requirements to permit opting out of e-delivery for free, and to permit covered recipients to request paper copies of covered information for free, are however designed to assist covered recipients in accessing covered information in the format they prefer, particularly in view of the default e-delivery approach that would be permitted under the proposed rule.
                    </P>
                    <P>We also considered requiring the provision of free copies only for a limited time period; allowing more time or a more flexible standard for covered entities to respond to requests for paper copies; and permitting covered recipients to opt out only on a “global” basis, where they would receive all covered information from that covered entity in paper. We considered providing for delivery of free copies for a limited time period with exceptions that are tailored to the potential value of the paper delivery to the recipient, such as according to the type of covered information. The benefit of these alternatives would be to tailor the requirement for provision of paper on request free of charge more narrowly to the type of covered information and the circumstances of the covered entity and covered recipient, and to reduce the incentives to request paper for those recipients for whom e-delivery is a good (and less costly) substitute. The cost of these alternatives would be the potential loss of access to covered information for some recipients compared to the proposed rule and additional compliance costs associated with the need to tailor compliance and administrative systems to support this more granular approach. The proposed rule would apply the requirements to provide paper at no charge on request equally across all covered entities. We believe that the proposed rule strikes the appropriate balance by ensuring that all covered recipients can access covered information in their preferred format, while maintaining administrative simplicity and supporting investor protection. This approach avoids the risk that fees or restrictive policies could deter recipients from obtaining important information, and it provides a clear, uniform standard that is easier for both covered entities and recipients to understand and implement.</P>
                    <HD SOURCE="HD3">2. Additional Paper Notices Following Transition to Default E-Delivery</HD>
                    <P>
                        To help ensure that covered recipients are aware of the transition to default e-delivery and their ability to receive documents in paper, the transition provision of the proposed rule would require covered entities to provide those covered recipients currently receiving any covered information in paper format (and for whom the covered entity has an electronic address) with a paper initial notice at least 180 days before the transition to default e-delivery, and a paper follow-up notice 30 days before the transition.
                        <SU>649</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>649</SU>
                             
                            <E T="03">See supra</E>
                             section II.D.2.
                        </P>
                    </FTNT>
                    <P>As an alternative, we considered also requiring entities to mail additional paper notices to covered recipients who have not opted out of default e-delivery after the transition to default e-delivery. Specifically, we considered requiring covered entities to send follow-up notices, either after one year or annually, after the covered entity begins delivering covered information electronically to each covered recipient. Receiving a one-time or annual reminder in paper form after the transition to e-delivery may be more salient to these recipients than the initial and follow-up notices they would receive through e-delivery under the proposal. However, this alternative would result in an increase in costs, as covered entities would be required to print and mail additional notices, potentially every year in perpetuity, rather than just before the transition to e-delivery.</P>
                    <P>For these reasons, the Commission believes the proposed rule, which requires only an initial and follow-up notice before the transition to e-delivery, more appropriately balances the need to inform covered recipients of their rights with the need to avoid imposing unnecessary and potentially recurring costs on covered entities. This approach ensures that recipients are adequately notified of their ability to opt out of e-delivery before the transition, while maintaining administrative efficiency and cost-effectiveness.</P>
                    <HD SOURCE="HD3">3. Access Equals Delivery Approach to E-Delivery</HD>
                    <P>As a further alternative to the proposed framework, the Commission considered an “access equals delivery” model of e-delivery. Under such a model, a covered entity would post covered information online, rather than delivering it directly (or a notice of availability directly) to investors and other recipients of information required under the Federal securities laws by electronic means or in paper format. In this approach, the covered entity would not notify covered recipients of the availability of the covered information. This would depart from the proposed approach of requiring that the covered entity deliver the covered information (or a notice of availability of covered information) directly to the covered recipient, either by electronic means (e-delivery) or in paper format (mail). Under the alternative access-equals-delivery approach, covered recipients could access a website and “pull” the covered information for their use and review. We also considered a variation of this approach that would permit differences in the notice requirements across different types of covered recipients. For example, we could restrict the use of access equals delivery under the proposal to the delivery of covered information to covered recipients who are institutional investors and clients of the covered entity, as opposed to retail.</P>
                    <P>
                        One benefit of this alternative is that it would confer greater savings from the elimination of costs of printing and mailing (either the covered information, or notices of availability that covered information is available online) than under the proposed rule. These cost savings could be significant for covered entities, as they would no longer need to send physical documents or notices. The alternative would, however, impose additional costs and risks on covered recipients by requiring them to seek out information without any accompanying notice that information is available online. Because recipients may not know when new information is posted, they may not be aware of significant developments, miss time-sensitive disclosures, or be unable to make optimal investment decisions. This lack of notification could be particularly problematic for retail investors, who may not have the resources or habits to regularly check for updates. Restricting the use of access equals delivery to institutional recipients could lessen this cost relative to a broader approach, as institutional investors may have more robust systems for monitoring disclosures. However, the benefits of this alternative—primarily cost savings for covered entities—would not be conferred on all recipients and would come at the expense of eliminating the benefits of the proposed rule's requirements to provide notices that are designed to alert recipients to the availability and location of covered information. These notices are designed to help recipients make informed decisions based on the documents that covered entities are required to send under the securities laws. Accordingly, the new framework that we are proposing does not follow an access equals delivery approach.
                        <PRTPAGE P="45961"/>
                    </P>
                    <HD SOURCE="HD3">4. Alternative Notice and Access Approach to E-Delivery (Permitting Paper Notice)</HD>
                    <P>
                        As an additional alternative, the Commission considered a notice and access approach under which covered recipients would receive a paper notice, such as a postcard, that the covered information is available online. This notice would go out to all recipients, whether or not they provide an electronic address. The covered entity would provide a paper notice that includes a legend as well as other information designed to alert the recipient about the type and importance of the information that is available and the website address where the information could be found. There is a limited Commission rule that currently permits this approach for certain registrants for certain communications.
                        <SU>650</SU>
                        <FTREF/>
                         However, the approach in this rule was designed for investors who did not elect to receive disclosures through e-delivery.
                        <SU>651</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>650</SU>
                             
                            <E T="03">See</E>
                             17 CFR 270.30e-3 and 
                            <E T="03">supra</E>
                             footnote 65; s
                            <E T="03">ee also supra</E>
                             section II.F.1; 
                            <E T="03">see also</E>
                             17 CFR 240.14a-16.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>651</SU>
                             
                            <E T="03">See infra</E>
                             section II.F.1.
                        </P>
                    </FTNT>
                    <P>
                        The Commission preliminarily believes that most covered recipients who provide an electronic address would be transitioned to e-delivery under the proposed rule if adopted, and a covered recipient who has declined to provide an electronic address may be more likely to prefer to receive covered information in paper format. Thus, the Commission preliminarily believes that the alternative approach may impose a greater cost on covered recipients who prefer paper delivery than under the proposed rule, while being less effective in eliminating the costs of printing and mailing documents in paper form. In addition, this approach would impose costs on recipients by requiring them to take additional steps to access covered information. The lack of a direct electronic link or notification would make it less convenient for recipients to access the information and could make it more difficult for them to act on the covered information in a timely manner.
                        <SU>652</SU>
                        <FTREF/>
                         This could make it more difficult for some covered recipients to act upon important updates or to make informed decisions based on the covered information.
                    </P>
                    <FTNT>
                        <P>
                            <SU>652</SU>
                             If the paper notice were to include a QR code or URL, this could partially mitigate the inconvenience of not having a direct electronic link for those covered recipients that are comfortable using QR codes or transcribing URLs.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">5. Alternatives to Proposed Definition of PFI and Requirements Regarding E-Delivery of Covered Information Containing PFI</HD>
                    <P>The proposed rule defines PFI as information specific to a covered recipient's personal financial matters, such as an account number or details regarding a specific securities transaction, and requires covered information containing PFI to be delivered through the statement of availability method with a password or other reasonably designed process. We considered alternative approaches to providing enhanced protection of sensitive information under the new e-delivery framework. We considered, for example, using a broader definition than PFI, such as “personally identifiable information” or permitting covered information containing PFI to be delivered through direct delivery under certain conditions. We understand that a small minority of entities may currently use a direct secure delivery approach, which may involve secure email or encrypted attachments, and that permitting direct secure delivery as an alternative could impose lower costs on those entities compared to the proposed requirement to use the statement of availability method.</P>
                    <P>We also considered a more principles-based approach, such as requiring covered entities to implement reasonable safeguards for sensitive information without specifying the delivery method or the exact definition of PFI. Under this alternative, covered entities would have flexibility to determine the appropriate level of protection based on the nature of the information and the risks involved, rather than following prescriptive requirements.</P>
                    <P>
                        These alternatives would be less restrictive and provide covered entities with more flexibility in the transmission of sensitive information, including as technology and cyber threats may evolve. We understand, however, that the proposed approach closely aligns with industry practices that have become commonplace and have evolved to reflect industry experience with threats and the protection of integrity, confidentiality, and security associated with the delivery of private information over electronic media. The proposed approach would thus impose limited costs as it would require little or no departure from current standard practices for most covered entities and would provide protections for covered recipients consistent with those provided by current industry best practices.
                        <SU>653</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>653</SU>
                             
                            <E T="03">See</E>
                             section II.B.5 and associated requests for comment.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">6. Alternatives to Proposed Transition Process</HD>
                    <P>
                        The proposed rule requires notices to be sent to covered recipients receiving paper for whom the covered entity has an electronic address and who would therefore be subject to a change from paper to default e-delivery. The two notices would be mailed over a period of about 180 days to only the covered recipients who receive paper and for whom the covered entity has an electronic address. We considered an alternative requiring the covered entity to send the notice to all covered recipients for whom the entity has electronic addresses, even for those who have previously consented to e-delivery. This approach would provide notices of the transition to a greater number of covered recipients. Some of the covered recipients who had previously consented to e-delivery may become aware of their ability to revert their consent and opt out of e-delivery. The result could be a better alignment between the form of delivery and preferences for those covered recipients. The alternative approach would, however, be more costly in terms of the time and attention of the covered recipients who receive the notices and the cost of paper, printing, and postage that is paid by the covered entity. Accordingly, we are proposing that notices only be sent to those covered recipients receiving paper for whom the covered entity has an electronic address.
                        <SU>654</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>654</SU>
                             
                            <E T="03">See</E>
                             section II.D.1.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">7. Alternatives for Smaller Covered Entities</HD>
                    <P>
                        The proposed rule would apply to all covered entities, regardless of their size. As an alternative, we considered providing smaller entities with greater flexibility in meeting the requirements of the proposed rule than larger entities. For example, we considered providing additional time for smaller entities to provide paper copies of covered information to covered recipients upon request. This could reduce the cost of compliance for smaller entities that do not have dedicated staff to time their workflow in a way that lowers the cost of relying on the proposed rule. However, this could be a source of inconvenience to some recipients who expect to receive their documents in a shorter time frame and in particular for covered recipients who have received 
                        <PRTPAGE P="45962"/>
                        paper copies of covered information from other covered entities within three business days of their request. In addition, we considered providing for smaller entities to provide only all-or-nothing paper delivery to those who elect paper (as opposed to permitting covered recipients to pick and choose what covered information they would receive electronically). This could benefit covered recipients who prefer paper delivery but would not otherwise request to receive covered information in paper form versus electronically under proposed Reg E-Delivery due to costs of their time and attention and other frictions. This would reduce some of the systems costs for smaller entities, recognizing that systems for tracking and fulfilling the bespoke paper preferences of covered recipients could be costly. Without such a system, however, more covered recipients may require paper delivery for all documents (rather than receiving e-delivery for some information and paper for other information, for example), which could lead to a higher volume and thus cost of paper delivery. In addition, this approach would not confer the benefit of a standardized framework for e-delivery that the proposed rule would provide.
                    </P>
                    <HD SOURCE="HD3">F. Request for Comment</HD>
                    <P>We seek comment on the economic analysis, including whether the analysis has: (1) identified all benefits and costs, including all effects on efficiency, competition, and capital formation; (2) given due consideration to each benefit and cost, including each effect on efficiency, competition, and capital formation; and (3) identified and considered reasonable alternatives to the proposed rule. We request and encourage any interested person to submit comments regarding the proposed rules, our analysis of the potential effects of the proposed rules, and other matters that may have an effect on the proposed rule. We request that commenters identify sources of data and information as well as provide data (with documentation) and information to assist us in analyzing the economic consequences of the proposed rules and proposed amendments. If available, we request that commenters provide examples to illustrate answers. We also are interested in comments on the qualitative benefits and costs we have identified and any benefits and costs we may have overlooked. In addition to our general request for comments on the economic analysis associated with the proposed rules and proposed amendments, we request specific comments on the following aspects of the proposal:</P>
                    <P>177. How might changes in the cost of transmitting covered information affect the quantity, quality, or timing of transmissions?</P>
                    <P>178. Does the Commission's economic analysis accurately describe the current frequency of paper delivery? Under what circumstances is paper delivery most frequently used now? If available, please provide information on the type of information and number of documents being delivered under each method.</P>
                    <P>179. If Reg E-Delivery is adopted, which types of covered information would covered recipients be most likely to begin receiving electronically compared to the current baseline? Would the benefits of Reg E-Delivery be enhanced with respect to any particular type of covered information or covered entity? If available, please provide estimates of the anticipated cost savings likely to result for each such type of covered information.</P>
                    <P>180. What specific changes in practice, spending, and staffing might result if Reg E-Delivery is adopted? Would those changes be more significant for some covered entities than others?</P>
                    <P>181. Recipients of covered information who prefer e-delivery would benefit from the proposed rule, particularly from savings in the time and attention currently required to obtain their covered information from covered recipients in their preferred format, to the extent the covered entity implements default e-delivery. In addition to the evidence that we have provided, what is the evidence of benefits to recipients from the proposed rule? To what extent would those benefits include potential savings to recipients who prefer e-delivery from the proposed rule? What other benefits would accrue to recipients from the proposed rule?</P>
                    <P>182. Recipients of covered information who prefer paper would experience costs from a default to e-delivery in terms of the burden on their time and attention to obtain their preferred form of delivery. How else would the proposed rule affect covered recipients who prefer paper delivery?</P>
                    <P>
                        183. According to an industry study, recipients of regulatory documents report that they sometimes request, but do not receive, e-delivery.
                        <SU>655</SU>
                        <FTREF/>
                         Please provide an explanation for this reported finding. Please also provide evidence on the extent to which covered entities have in the past not provided e-delivery when it is requested. Conversely, to what extent, if any, have covered entities provided e-delivery to recipients who did not request it or who preferred paper)?
                    </P>
                    <FTNT>
                        <P>
                            <SU>655</SU>
                             
                            <E T="03">See supra</E>
                             footnote 548 and accompanying text.
                        </P>
                    </FTNT>
                    <P>184. Under what conditions do covered entities currently provide paper delivery at no charge on request? Under what conditions do covered entities currently charge, directly or indirectly, for paper delivery?</P>
                    <P>185. How would the requirement for entities relying on the proposed rule to provide paper at no charge on request affect the extent to which covered entities choose to rely on the proposed rule? How would it affect the cost or cost savings from the proposed rule, including whether and how cost savings are passed along to covered recipients and other parties? How would this requirement affect the experiences of covered recipients in reviewing the covered information?</P>
                    <P>186. Economies of scale and scope can limit the incremental cost of compliance for covered entities and other affected parties. To what extent would the presence or absence of scale economies in the supply of services to parties affected by the proposed rule influence the cost of compliance with the proposed rule?</P>
                    <P>187. Could the reduction in the total number of paper documents sent result in an increase in the price or fee that covered entities pay for paper delivery?</P>
                    <P>188. Could an increase in the total number of electronic transmissions of covered information cause an increase in the price or fee that covered entities pay for electronic delivery. If so, please explain how.</P>
                    <P>189. The proposed rule would facilitate a reduction in costs of paper, printing, and postage that are associated with the delivery of covered information by paper mail. To what extent, and under what conditions, would these cost savings accrue entirely to the covered entity and to what extent, and under what conditions, would they be passed on to the covered recipients or other parties? Please explain with attention to the mechanism through which a covered entity may fully retain, or pass along, the savings and how the result may vary with type of covered entity, covered information, covered recipient or other factors.</P>
                    <P>
                        190. The cost of providing paper delivery will vary across covered entities according to the type of covered information, and on the extent to which they rely on intermediaries to transmit covered information and on what choices covered entities and potentially intermediaries make about, 
                        <E T="03">e.g.,</E>
                         the 
                        <PRTPAGE P="45963"/>
                        kind of mail used, as industry studies have shown. To what extent would variation in the kind of mail used across covered entities, or the choices they make in this regard, affect the benefit or cost of the proposed rule? Please provide estimates of the differences in the benefits or costs of the proposed rule in relation to the differences in choice of mail, by type of covered information and covered recipient, if available, along with details on how the estimates are derived.
                    </P>
                    <P>191. What costs would covered entities incur in transitioning from reliance on the E-Delivery Guidance to reliance on Reg E-Delivery in addition to those costs that are quantified and discussed in the economic analysis?</P>
                    <P>192. What costs would covered entities incur as a result of the transition from reliance on rule 30e-3 to reliance on Reg E-Delivery? Please provide details and examples, with attention to how or whether these costs would vary with the scale of operations of the affected entity or the scale of operations of any provider of services to the affected entity. Provide quantitative estimates, if available.</P>
                    <P>193. What costs would covered entities incur in transition from reliance on rule 14a-16 to reliance on revised rule 14a-16 and Reg E-Delivery for the delivery of covered information? Please provide details and examples, with attention to how or whether these costs would vary with the scale of operations of the affected entity and its service providers. Provide quantitative estimates, if available.</P>
                    <P>194. The proposed rule requires the delivery of information in paper form, free of charge, on request by covered entities after the transition to e-delivery. Under what conditions would entities likely receive requests for paper delivery from covered recipients whose deliveries were previously defaulted to e-delivery? What are the likely costs of this requirement to covered entities and recipients? Please explain and provide quantitative information, if available, to support your explanation. Please also explain, and present evidence regarding the implications of this requirement for cost of relying on the proposed rule and the choice of a covered entity to rely on the rule.</P>
                    <P>195. It is our understanding that most covered entities and their service providers already provide toll-free numbers and websites for various investor, customer, client or other covered recipient inquiries and that, based on this, the cost to most entities of maintaining the websites and systems (for such inquiries) that are required by Reg E-Delivery would be small. Is our understanding correct? Under what circumstances and to what extent would covered entities not already have such systems in place? Under what, if any, conditions would a covered entity face significant costs of the web systems requirements of the proposed rule relative to current practice?</P>
                    <P>196. The proposed rescission of rule 30e-3 would cause covered entities to incur a one-time cost of updating their systems and procedures to conform to the requirements of the new e-delivery framework. This cost may vary across covered entities based on factors that include whether they rely on a service provider or intermediary for the maintenance of those systems and procedures. We are requesting comment on the cost to entities that rely on rule 30e-3 of transitioning to the proposed new framework for E-Delivery, including the magnitude of the cost, and whether and how covered entities may rely on service providers or intermediaries to mitigate this cost.</P>
                    <P>197. The proposed rule limits the scope for a covered entity to default a covered recipient into paper delivery, such as through restriction on the electronic addresses to which a covered entity may e-deliver covered information. These restrictions and other conditions of the proposed rule are designed to prevent the e-delivery of covered information to recipients who lack internet access or lack the digital literacy that is necessary to avoid being made worse off by a transition from paper to e-delivery. Are there any scenarios under which these restrictions and conditions do not sufficiently protect against e-delivery to recipients who would be worse off from receiving covered information by e-delivery? For each such scenario, what would be the effect on the covered recipient and what, if any, changes to the proposed rule would mitigate that effect. Please consider in your answer whether or how the ability of the covered entity to choose whether to rely on the rule (and thus, whether to provide e-delivery) could serve to mitigate the potential harm.</P>
                    <P>198. For some types of covered information, is it possible that lowering the incremental cost of delivering the covered information (for entities relying on the rule) could create an incentive for the covered entity (or, in the case of proxy materials, a third party) to increase the number or frequency of deliveries or to change the delivery timing beyond what is required under applicable law? We request comment on whether (and under what conditions) the proposed rule would affect the timing or frequency of deliveries of covered information to covered recipients. Please provide specific examples regarding the type of covered information and the conditions under which a change could occur.</P>
                    <P>199. What, if any, effect on the physical storage of documents and the costs of storage would arise from the change from paper to e-delivery under the proposed rule? Would the total cost decline? Would the form of storage change?</P>
                    <P>200. We understand that covered entities generally have chosen an approach to transmitting information containing PFI that does not involve direct delivery. Covered entities commonly will deliver an electronic notification informing a recipient that a disclosure is available, while providing access to the document via a link to a secure website such as an online portal. We request comment on the degree to which there are any exceptions to this practice, such as by using a direct secure delivery method. What would be the effect of requiring any entities that currently do not sent a statement of availability to comply with the provisions of the proposed rule relating to PFI.</P>
                    <P>201. We have provided estimated savings in the cost of paper, printing and postage from reliance on the proposed rule based on assumptions about the percent of deliveries that currently occur in paper and that 90.25 percent of those paper deliveries would default to e-delivery under the proposed rule. What alternative assumptions should we consider as a basis for estimating the savings in paper, printing and postage from the proposed rule? Does your answer vary according to the type of covered entity or covered information for which the estimate is being generated?</P>
                    <HD SOURCE="HD1">IV. Paperwork Reduction Act Analysis</HD>
                    <P>
                        New proposed rule Reg E-Delivery contains “collection of information” requirements within the meaning of the Paperwork Reduction Act of 1995 (the “PRA”).
                        <SU>656</SU>
                        <FTREF/>
                         The Commission is submitting these collections of information to the Office of Management and Budget (“OMB”) for review in accordance with 44 U.S.C. 3507(d) and 5 CFR 1320.11. The new collections of information relate to (1) proposed section 303.102(b) of Reg E-Delivery regarding disclosure of e-delivery, (2) proposed section 303.102(c) of Reg E-Delivery regarding e-delivery methods, (3) proposed section 303.102(f) of Reg E-Delivery regarding the obligation of covered 
                        <PRTPAGE P="45964"/>
                        entities to provide free paper copies of covered information and to permit covered recipients to opt out of e-delivery; (4) proposed section 303.103 of Reg E-Delivery regarding requirements for website availability of covered information; and (5) proposed section 303.104 of Reg E-Delivery regarding notices of the default to e-delivery. The Commission is also providing analysis regarding information collections associated with the proposed rescission of rule 30e-3, and amendments to Regulations 14A and 14C regarding the dissemination of proxy materials and information statements to shareholders. 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>
                    <FTNT>
                        <P>
                            <SU>656</SU>
                             
                            <E T="03">See</E>
                             44 U.S.C. 3501 
                            <E T="03">et seq.</E>
                        </P>
                    </FTNT>
                    <P>We discuss below the collection of information burdens associated with the proposed rule. These PRA burden estimates are not the only economic effects of the proposed rulemaking. Section III above discusses the economic effects of the proposed rulemaking comprehensively. The discussion in Section III incorporates an estimate of the proposed rulemaking's aggregated monetized benefits and costs, including the estimate that the proposed rule would yield aggregate annual cost savings for covered entities of approximately $463 million annually.</P>
                    <P>The PRA burden estimates discussed below do not include the time and cost burdens associated with underlying statutory and regulatory requirements to deliver covered information. These are accounted for as appropriate in the existing collections of information associated with the respective regulatory requirements addressing this covered information. If Reg E-Delivery is adopted, the Commission will make any needed adjustments to the burden estimates for existing collections of information associated with Commission rules regarding the delivery of covered information (specifically, cost burdens associated with print and mail) in connection with its submission of these collections of information to OMB for extension or renewal. As discussed in the economic analysis, we anticipate the overall result would be to reduce burdens on covered entities. The anticipated burden reduction may be dispersed across the existing collections of information, however, and the burden reduction associated with any given OMB control number may vary depending on the assumptions reflected in the prior supporting statements for each collection. We invite public comment on possible burden adjustments resulting from this rule (for example the possible changes in printing and mailing costs or the possible changes in time devoted to paper and digital communication) and note that the OMB extension and renewal processes will also provide an opportunity for public comment when the existing collections are adjusted.</P>
                    <HD SOURCE="HD2">A. Reg E-Delivery: Disclosure of Electronic Delivery</HD>
                    <P>Proposed section 303.102(b) of Reg E-Delivery, if adopted, would require a covered entity, before using electronic delivery to deliver covered information to a covered recipient, to provide certain disclosures to that covered recipient, as described in section II.B.2 above. A covered entity would not have to provide this disclosure if the covered recipient received an initial notice under the requirements to transition to default e-delivery, as described in section II.D above, or who received e-delivery of all covered information by or on behalf of the covered entity as of the effective date of Reg E-Delivery.</P>
                    <P>
                        The table below summarizes our PRA initial and ongoing annual burden estimates associated with the proposed requirements regarding disclosure of e-delivery under section 303.102(b). As of December 31, 2025, we estimate that there were 44,134 covered entities that could choose to rely on Reg E-Delivery.
                        <SU>657</SU>
                        <FTREF/>
                         We estimate that 95% of these covered entities would actually rely on Reg E-Delivery to use electronic delivery, meaning that approximately 42,000 covered entities would be required to prepare and deliver the required disclosure.
                        <SU>658</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>657</SU>
                             Our estimates indicate that as of December 31, 2025, there were 14,296 registered investment companies (including business development companies); 16,442 registered investment advisers; 3,262 broker-dealers; 324 transfer agents; 75 funding portals; 9,654 corporate issuers excluding business development companies (
                            <E T="03">see supra</E>
                             section III.B.2.e for a discussion of the calculation of this figure); 16 municipal securities dealers; 54 security-based swap dealers; 0 major security-based swap participants; 3 security-based swap data repositories; and 8 security-based swap execution facilities, for a total of 44,134 covered entities. 
                            <E T="03">See supra</E>
                             section III.B.2.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>658</SU>
                             For example, in 2018, we estimated that 90% of all funds would rely on rule 30e-3, which, subject to certain conditions, permits funds to satisfy shareholder report delivery requirements by making those reports available online. 
                            <E T="03">See</E>
                             Rule 30e-3 Adopting Release, 
                            <E T="03">supra</E>
                             footnote 213. Given the continued and historical shift to e-delivery, we estimate that the percentage of covered entities that would utilize e-delivery, and therefore rely on proposed Reg E-Delivery, has likely risen to 95%. 95% × 44,134 covered entities (
                            <E T="03">see supra</E>
                             footnote 657) = 41,927 covered entities. We round this to 42,000 covered entities.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,r25,8,r25">
                        <TTITLE>
                            Table 8—Reg E-Delivery § 303.102(
                            <E T="01">b</E>
                            ) PRA Estimates
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Internal initial hour burdens</CHED>
                            <CHED H="1">
                                Internal annual burden 
                                <SU>1</SU>
                            </CHED>
                            <CHED H="1">
                                Wage rate 
                                <SU>2</SU>
                            </CHED>
                            <CHED H="1">Internal annual time costs</CHED>
                        </BOXHD>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">PROPOSED ESTIMATES FOR REG E-DELIVERY § 303.102(b)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Internal preparation of required disclosure </ENT>
                            <ENT>1.5</ENT>
                            <ENT>
                                1 hour 
                                <SU>3</SU>
                            </ENT>
                            <ENT>
                                <SU>4</SU>
                                 $528
                            </ENT>
                            <ENT>$528. </ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="03">
                                Number of responses 
                                <SU>5</SU>
                            </ENT>
                            <ENT/>
                            <ENT>× 42,000 responses</ENT>
                            <ENT/>
                            <ENT>× 42,000 responses.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="05">Total annual burden for § 102(b))</ENT>
                            <ENT/>
                            <ENT>42,000 hours</ENT>
                            <ENT/>
                            <ENT>
                                $22,000,000.
                                <SU>6</SU>
                            </ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Notes:</E>
                        </TNOTE>
                        <TNOTE>
                            <SU>1</SU>
                             Includes ongoing annual burden hours, plus initial burden estimates annualized over a 3-year period. 
                            <PRTPAGE P="45965"/>
                        </TNOTE>
                        <TNOTE>
                            <SU>2</SU>
                             To calculate the occupational hourly rates used in this release, the Commission uses occupational mean hourly wage data from the Occupational Employment and Wage Statistics (OEWS) program of the Bureau of Labor Statistics (BLS) for “Securities, Commodity Contracts, and Other Financial Investments and Related Activities” (NAICS 523)+. 
                            <E T="03">See Occupational Employment and Wage Statistics,</E>
                             U.S. BUREAU OF LABOR STATISTICS, 
                            <E T="03">https://www.bls.gov/oes/</E>
                            ; 
                            <E T="03">see also Standard Occupational Classification,</E>
                             U.S. BUREAU OF LABOR STATISTICS, 
                            <E T="03">https://www.bls.gov/soc/</E>
                             (describing occupational classification system used by BLS); EXEC. OFF. OF THE PRESIDENT, OFF. OF MGMT. &amp; BUDGET, NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (2022), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.census.gov/naics/reference_files_tools/2022_NAICS_Manual.pdf</E>
                             (describing the industry classification system used by BLS and other agencies). The mean hourly wage for each occupation is adjusted for changes in the seasonally adjusted employment cost index for private wages and salaries between the data reference period and when the data are released by BLS. 
                            <E T="03">See Employment Cost Index,</E>
                             U.S. BUREAU OF LABOR STATISTICS, 
                            <E T="03">https://www.bls.gov/eci/</E>
                            . The adjusted mean hourly wage is then multiplied by a factor that accounts for nonwage costs borne by employers, such as bonuses, benefits, and overhead. This factor is calculated as an average over the 10 most recently available years of data of the ratio of the Bureau of Economic Analysis's annual gross output data for NAICS 523 to total annual wages across all occupations for NAICS 523 in the OEWS data. 
                            <E T="03">See Gross Output by Industry,</E>
                             U.S. BUREAU OF ECONOMIC ANALYSIS, 
                            <E T="03">https://www.bea.gov/data/industries/gross-output-by-industry</E>
                            ; 
                            <E T="03">Occupational Employment and Wage Statistics,</E>
                             U.S. BUREAU OF LABOR STATISTICS, 
                            <E T="03">https://www.bls.gov/oes/</E>
                            . The final product is the occupational hourly rate. 
                            <E T="03">See generally</E>
                             UPDATED METHODOLOGY FOR CALCULATING OCCUPATIONAL HOURLY RATES (Dec. 19, 2025), 
                            <E T="03">available at</E>
                              
                            <E T="03">https://www.sec.gov/files/method-occupational-hourly-rates.pdf</E>
                            .
                        </TNOTE>
                        <TNOTE>
                            <SU>3</SU>
                             This estimate assumes that, after the initial 1.5 hours that a covered entity would spend on the disclosure of electronic delivery, which we annualize over a 3-year period, the covered entity would incur 0.5 burden hours annually associated with ongoing compliance with this requirement. The estimate of 1 hour is based on the following calculation: (1.5 initial hour burden/3) = .5 hour + 0.5 ongoing annual burden. This estimate includes the preparation of the notice, as well as any related recordkeeping.
                        </TNOTE>
                        <TNOTE>
                            <SU>4</SU>
                             $528 reflects a $527.50 blended wage rate, based on current estimates for an attorney ($774) and paralegal ($281). We round this to $528.
                        </TNOTE>
                        <TNOTE>
                            <SU>5</SU>
                             This estimate assumes that, because each covered entity prepares general or template disclosure that would be provided to covered recipients, there is 1 response per covered entity (therefore, number of responses = number of covered entities relying on Reg E-Delivery).
                        </TNOTE>
                        <TNOTE>
                            <SU>6</SU>
                             $528 × 42,000 = $22,176,000. The PRA internal annual time cost estimates in this release are rounded to the nearest million.
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD2">B. Reg E-Delivery: E-Delivery Methods</HD>
                    <P>Proposed section 303.102(c) of Reg E-Delivery, if adopted, would permit a covered entity to use two methods of e-delivery, depending on the type of information being provided: statement of availability, and direct delivery of covered information to an electronic address, as described in sections II.B.3 and II.B.4 above. The permissible delivery method would depend on whether the covered information includes PFI. For covered information that does not include PFI, a covered entity would be permitted to electronically deliver covered information directly to a covered recipient's electronic address. For covered information that includes PFI, a covered entity would not be permitted to deliver this information directly to an electronic address, but instead would be required to deliver a statement of availability to the covered recipient's electronic address. The proposed rule includes content requirements for both the statement of availability and the direct delivery of covered information.</P>
                    <P>
                        The table below summarizes our PRA initial and ongoing annual burden estimates associated with the statement of availability requirements, as well as the requirements associated with directly delivering covered information to an electronic address, as described in Reg E-Delivery section 303.102(c). As discussed above, we estimate that approximately 42,000 covered entities would rely on Reg E-Delivery.
                        <SU>659</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>659</SU>
                             
                            <E T="03">See supra</E>
                             footnote 658 and accompanying text.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s100,12,r50,6C,8,r50">
                        <TTITLE>
                            Table 9—Reg E-Delivery § 303.102(
                            <E T="01">c</E>
                            ) PRA Estimates
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Internal initial hour burdens</CHED>
                            <CHED H="1">
                                Internal annual burden 
                                <SU>1</SU>
                            </CHED>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Wage rate 
                                <SU>2</SU>
                            </CHED>
                            <CHED H="1">Internal annual time costs</CHED>
                        </BOXHD>
                        <ROW EXPSTB="05" RUL="s">
                            <ENT I="21">
                                <E T="02">PROPOSED ESTIMATES FOR REG E-DELIVERY § 303.102(c)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Preparation of statements of availability of covered information to an electronic address and/or direct delivery of covered information</ENT>
                            <ENT>9</ENT>
                            <ENT>
                                6 hours 
                                <SU>3</SU>
                            </ENT>
                            <ENT O="xl">×</ENT>
                            <ENT>
                                <SU>4</SU>
                                 $528
                            </ENT>
                            <ENT>$3,168.</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">
                                Number of responses 
                                <SU>5</SU>
                            </ENT>
                            <ENT/>
                            <ENT>× 42,000 responses</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>× 42,000 responses.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total annual burden for § 303.102(c)</ENT>
                            <ENT/>
                            <ENT>252,000 hours</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>
                                 $133,000,000.
                                <SU>6</SU>
                            </ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Notes:</E>
                        </TNOTE>
                        <TNOTE>
                            <SU>1</SU>
                             Includes ongoing annual burden hours, plus initial burden estimates annualized over a 3-year period. 
                        </TNOTE>
                        <TNOTE>
                            <SU>2</SU>
                             
                            <E T="03">See supra</E>
                             footnote 2 to Table 8 (discussing calculation of the occupational hourly rates used in this release).
                        </TNOTE>
                        <TNOTE>
                            <SU>3</SU>
                             This estimate assumes that, after the initial 9 hours that a covered entity would spend on developing a template statement of availability and/or a template for the direct delivery of covered information, which we annualize over a 3-year period, the covered entity would incur 3 burden hours annually associated with ongoing compliance with this requirement. The estimate of 6 hours is based on the following calculation: (9 initial hour burden/3) = 3 hours + 3 hours ongoing annual burden.
                        </TNOTE>
                        <TNOTE>
                            <SU>4</SU>
                             $528 reflects a $527.50 blended wage rate, based on current estimates for an attorney ($774) and paralegal ($281). We round this to $528.
                        </TNOTE>
                        <TNOTE>
                            <SU>5</SU>
                             This estimate assumes that, because each covered entity prepares general or template statement of availability or direct delivery mailing that would be provided to covered recipients, there is 1 response per covered entity (therefore, number of responses = number of covered entities relying on Reg E-Delivery).
                        </TNOTE>
                        <TNOTE>
                            <SU>6</SU>
                             $3,168 × 42,000 = $133,056,000. The PRA internal annual time cost estimates in this release are rounded to the nearest million.
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD2">C. Reg E-Delivery: Delivery of Covered Information in Paper on Request</HD>
                    <P>Section 102(f) of Reg E-Delivery would obligate the covered entity to provide one paper copy of covered information, free of charge upon request. We describe this requirement in more detail in section II.B.7 above. The burdens associated with this collection of information would involve the burdens associated with responses to these requests, including print and mail costs associated with providing paper copies of covered information.</P>
                    <P>
                        While Reg E-Delivery permits covered recipients to opt out of e-delivery generally (to receive paper versions of all or a subset of covered information 
                        <PRTPAGE P="45966"/>
                        following the request), the burdens estimated below do not include the print and mail costs associated with opting out of e-delivery generally. These would be burdens associated with the underlying statutory and regulatory requirements to deliver covered information, and these are accounted for as appropriate in existing collections of information associated with the respective other regulatory requirements addressing this covered information. The burdens associated with ad hoc paper copy requests, however, are a burden associated with Reg E-Delivery because these would be additive to the costs of providing covered information as addressed in existing collections of information associated with the regulatory requirements for this covered information.
                    </P>
                    <P>
                        The table below summarizes our PRA initial and ongoing annual burden estimates associated with the requirements in Reg E-Delivery § 303.102(f). As discussed above, we estimate that approximately 42,000 covered entities would rely on Reg E-Delivery.
                        <SU>660</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>660</SU>
                             
                            <E T="03">See supra</E>
                             footnote 658 and accompanying text.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="7" OPTS="L2,nj,i1" CDEF="s100,12,r50,4C,8,r50,r50">
                        <TTITLE>
                            Table 10—Reg E-Delivery § 303.102(
                            <E T="01">f</E>
                            ) PRA Estimates
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Internal initial hour burdens</CHED>
                            <CHED H="1">
                                Internal annual 
                                <LI>
                                    burden 
                                    <SU>1</SU>
                                </LI>
                            </CHED>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Wage rate 
                                <SU>2</SU>
                            </CHED>
                            <CHED H="1">Internal annual time costs</CHED>
                            <CHED H="1">Annual external cost burden</CHED>
                        </BOXHD>
                        <ROW EXPSTB="06" RUL="s">
                            <ENT I="21">
                                <E T="02">PROPOSED ESTIMATES FOR REG E-DELIVERY § 303.102(f)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Delivery of covered information in paper on request</ENT>
                            <ENT>1.5 </ENT>
                            <ENT>
                                1  hour 
                                <SU>3</SU>
                            </ENT>
                            <ENT O="xl">×</ENT>
                            <ENT>
                                <SU>4</SU>
                                 $528
                            </ENT>
                            <ENT>$528</ENT>
                            <ENT>
                                $500.
                                <SU>5</SU>
                            </ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Number of responses</ENT>
                            <ENT/>
                            <ENT>× 42,000 responses</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>× 42,000 responses</ENT>
                            <ENT>× 42,000 responses.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total annual burden for § 303.102(f)</ENT>
                            <ENT/>
                            <ENT>42,000 hours</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>
                                <SU>6</SU>
                                 $22,000,000
                            </ENT>
                            <ENT>$21,000,000.</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Notes:</E>
                        </TNOTE>
                        <TNOTE>
                            <SU>1</SU>
                             Includes ongoing annual burden hours, plus initial burden estimates annualized over a 3-year period. 
                        </TNOTE>
                        <TNOTE>
                            <SU>2</SU>
                             
                            <E T="03">See supra</E>
                             footnote 2 to Table 8 (discussing calculation of the occupational hourly rates used in this release).
                        </TNOTE>
                        <TNOTE>
                            <SU>3</SU>
                             This estimate assumes that, after the initial 1.5 hours that a covered entity would spend on processes associated with providing paper copies of covered information, and processing e-delivery opt-out requests, which we annualize over a 3-year period, the covered entity would incur 0.5 burden hours annually associated with ongoing compliance with this requirement. The estimate of 1 hour is based on the following calculation: (1.5 initial hour burden/3) = 0.5 hours + 0.5 hours ongoing annual burden.
                        </TNOTE>
                        <TNOTE>
                            <SU>4</SU>
                             $528 reflects a $527.50 blended wage rate, based on current estimates for an attorney ($774) and paralegal ($281). We round this to $528.
                        </TNOTE>
                        <TNOTE>
                            <SU>5</SU>
                             Because we do not have specific data regarding the cost of printing and mailing the materials that must be provided on request, or the number of requests for printed materials that covered entities would receive annually, for purposes of our analysis we estimate $500 per year for each covered entity to collectively print and mail such materials upon request. 
                            <E T="03">See</E>
                             similar estimates in Tailored Shareholder Reports Adopting Release, 
                            <E T="03">supra</E>
                             footnote 13, at section V.B (Table 8).
                        </TNOTE>
                        <TNOTE>
                            <SU>6</SU>
                             $528 × 42,000 = $22,176,000. The PRA internal annual time cost estimates in this release are rounded to the nearest million.
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD2">D. Reg E-Delivery: Identifying and Remediating E-Delivery Failures</HD>
                    <P>Section 102(h) of Reg E-Delivery would require that covered entities adopt and implement written policies and procedures reasonably designed to identify and remediate e-delivery failures, as described in greater detail in section II.B.9, above.</P>
                    <P>
                        The table below summarizes our PRA initial and ongoing annual burden estimates associated with the adoption and implementation of the written policies and procedures requirements in Reg E-Delivery § 303.102(h). As discussed above, we estimate that approximately 42,000 covered entities would rely on Reg E-Delivery.
                        <SU>661</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>661</SU>
                             
                            <E T="03">See supra</E>
                             footnote 658 and accompanying text.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s150,12,r50,6C,8,r50">
                        <TTITLE>
                            Table 11—Reg E-Delivery § 303.102(
                            <E T="01">h</E>
                            ) PRA Estimates
                        </TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Internal initial
                                <LI>hour burdens</LI>
                            </CHED>
                            <CHED H="1">
                                Internal annual
                                <LI>
                                    burden 
                                    <SU>1</SU>
                                </LI>
                            </CHED>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Wage rate 
                                <SU>2</SU>
                            </CHED>
                            <CHED H="1">Internal annual time costs</CHED>
                        </BOXHD>
                        <ROW EXPSTB="05" RUL="s">
                            <ENT I="21">
                                <E T="02">PROPOSED ESTIMATES FOR REG E-DELIVERY § 303.102(h)</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Adoption and Implementation of Written Policies and Procedures</ENT>
                            <ENT>3</ENT>
                            <ENT>
                                2 hours 
                                <SU>3</SU>
                            </ENT>
                            <ENT>×</ENT>
                            <ENT>
                                <SU>4</SU>
                                 $528
                            </ENT>
                            <ENT>$1,056.</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Number of responses</ENT>
                            <ENT/>
                            <ENT>× 42,000 responses</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>× 42,000 responses.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total annual burden for § 303.102(h)</ENT>
                            <ENT/>
                            <ENT>84,000 hours</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>
                                 $44,000,000.
                                <SU>5</SU>
                            </ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Notes:</E>
                        </TNOTE>
                        <TNOTE>
                            <SU>1</SU>
                             Includes ongoing annual burden hours, plus initial burden estimates annualized over a 3-year period. 
                        </TNOTE>
                        <TNOTE>
                            <SU>2</SU>
                             
                            <E T="03">See supra</E>
                             footnote 2 to Table 8 (discussing calculation of the occupational hourly rates used in this release).
                        </TNOTE>
                        <TNOTE>
                            <SU>3</SU>
                             This estimate assumes that, after the initial 3 hours that a covered entity would spend on the adoption and implementation of written policies and procedures, which we annualize over a 3-year period, the covered entity would incur 1 burden hour annually associated with ongoing compliance. The estimate of 2 hours is based on the following calculation: (3 initial hour burden/3) = 1 hour + 1 hour ongoing annual burden.
                        </TNOTE>
                        <TNOTE>
                            <SU>4</SU>
                             $528 reflects a $527.50 blended wage rate, based on current estimates for an attorney ($774) and paralegal ($281). We round this to $528.
                        </TNOTE>
                        <TNOTE>
                            <SU>5</SU>
                             $1,056 × 42,000 = $44,352,000. The PRA internal annual time cost estimates in this release are rounded to the nearest million.
                        </TNOTE>
                    </GPOTABLE>
                    <PRTPAGE P="45967"/>
                    <HD SOURCE="HD2">E. Reg E-Delivery: Requirements for website Availability of Covered Information</HD>
                    <P>If a covered entity uses the statement of availability method for e-delivery, the covered information must be posted to a website (which is not the Commission's electronic filing system), meeting certain requirements as described in section II.C above. This would include minimum requirements for: (1) the length of time the covered information must be made available on the website; and (2) the format for presenting covered information on the website. In circumstances where a covered entity's website and covered information become temporarily unavailable, Reg E-Delivery section 303.103 would provide that the website availability requirements would be deemed to be met as long as two conditions are met: (1) the covered entity adopts and implements written policies and procedures reasonably designed to ensure that the covered information is made available and remains available in the manner required by the rule; and (2) the covered entity, once such an unavailability occurs, takes prompt action to ensure that the covered information becomes available in the manner required by Reg E-Delivery as soon as practicable following the earlier of the time at which the covered entity knows or reasonably should have known that the covered information is temporarily unavailable.</P>
                    <P>
                        The table below summarizes our PRA initial and ongoing annual burden estimates associated with the website availability requirements in Reg E-Delivery § 303.103. As discussed above, we estimate that approximately 42,000 covered entities would rely on Reg E-Delivery.
                        <SU>662</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>662</SU>
                             
                            <E T="03">See supra</E>
                             footnote 658 and accompanying text.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="6" OPTS="L2,nj,i1" CDEF="s100,12,r50,6C,8,r50">
                        <TTITLE>Table 12—Reg E-Delivery § 303.103 PRA Estimates</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Internal initial hour burdens </CHED>
                            <CHED H="1">
                                Internal annual burden 
                                <SU>1</SU>
                            </CHED>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Wage rate 
                                <SU>2</SU>
                            </CHED>
                            <CHED H="1">Internal annual time costs</CHED>
                        </BOXHD>
                        <ROW EXPSTB="05" RUL="s">
                            <ENT I="21">
                                <E T="02">PROPOSED ESTIMATES FOR REG E-DELIVERY § 303.103</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">
                                Website availability requirements for covered information 
                                <SU>3</SU>
                            </ENT>
                            <ENT>4.5</ENT>
                            <ENT>
                                2.5 hours 
                                <SU>4</SU>
                            </ENT>
                            <ENT>×</ENT>
                            <ENT>
                                <SU>5</SU>
                                 $605
                            </ENT>
                            <ENT>$1,512.5.</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">
                                Number of responses 
                                <SU>5</SU>
                            </ENT>
                            <ENT/>
                            <ENT>× 42,000 responses</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>× 42,000 responses.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total annual burden for § 303.103</ENT>
                            <ENT/>
                            <ENT>105,000 hours</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT>
                                $64,000,000.
                                <SU>6</SU>
                            </ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Notes:</E>
                        </TNOTE>
                        <TNOTE>
                            <SU>1 </SU>
                             Includes ongoing annual burden hours, plus initial burden estimates annualized over a 3-year period. 
                        </TNOTE>
                        <TNOTE>
                            <SU>2 </SU>
                             
                            <E T="03">See supra</E>
                             footnote 2 to Table 8 (discussing calculation of the occupational hourly rates used in this release).
                        </TNOTE>
                        <TNOTE>
                            <SU>3 </SU>
                             The estimate for website posting of covered information includes burdens related to the development of a posting protocol for the website, the timing and availability requirements regarding the covered information posted on the website, the format and retainability requirements of the covered information posted on the website, and the development of monitoring of safeguards to protect PFI. This estimate also includes estimates for the adoption and implementation of written policies and procedures reasonably designed to ensure that the covered information is made available and remains available in the manner required by the rule, and the quarterly maintenance of the website.
                        </TNOTE>
                        <TNOTE>
                            <SU>4 </SU>
                             This estimate assumes that, after the initial 4.5 hours that a covered entity would spend on compliance burdens relating to the website availability requirements, which we annualize over a 3-year period, the covered entity would incur 2 burden hours annually associated with ongoing compliance. The estimate of 2.5 hours is based on the following calculation: (4.5 initial hour burden/3) = 1.5 hours + 1 hour ongoing annual burden.
                        </TNOTE>
                        <TNOTE>
                            <SU>5 </SU>
                             $605 reflects a blended wage rate, based on current estimates for an attorney ($774) and a computer programmer ($436).
                        </TNOTE>
                        <TNOTE>
                            <SU>6 </SU>
                             $1,512.50 × 42,000 = $63,525,000. The PRA internal annual time cost estimates in this release are rounded to the nearest million.
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD2">F. Reg E-Delivery: Initial and Follow-Up Notices</HD>
                    <P>New proposed section 303.104 of Reg E-Delivery would require covered entities to provide certain notices to covered recipients regarding an upcoming transition to default e-delivery as described in greater detail in section II.D above. Under the proposed rule, covered entities would be required to deliver initial notices to covered recipients receiving paper and could be obligated to send a follow-up notice to any covered recipient that does not provide or confirm an electronic address at any time after receiving the initial notice. The collection of information is necessary to alert covered recipients receiving paper of the upcoming change in delivery method and provide them with an opportunity to elect to continue to receive paper delivery if that is their preference or to update an electronic address they have on file with the covered entity.</P>
                    <HD SOURCE="HD3">Internal Hours Burden</HD>
                    <PRTPAGE P="45968"/>
                    <P>
                        The respondents to this information collection would be the covered entities required to deliver notices of the transition to e-delivery, including registered investment companies, investment advisers, broker-dealers, transfer agents, funding portals, and corporate issuers. We estimate that approximately 42,000 covered entities would rely on Reg E-Delivery and would be required to send notices to covered recipients regarding an upcoming transition to default e-delivery.
                        <SU>663</SU>
                        <FTREF/>
                         The two different notices require nearly identical information and would vary little, so we anticipate that covered entities would prepare them simultaneously. With respect to these covered entities, we estimate compliance with the notice requirements of Reg E-Delivery would require an average of 3 hours per covered entity in the first year.
                        <SU>664</SU>
                        <FTREF/>
                         We do not anticipate that there would be burdens related to the notices after the first year. We estimate that the covered entity would prepare the notices internally and that this would be carried out by an attorney and paralegal at an average of $528.
                        <SU>665</SU>
                        <FTREF/>
                         Accordingly, amortizing burdens over three years, we estimate that the notice requirement would impose an average total internal annual hour burden of 42,000 hours on applicable covered entities.
                        <SU>666</SU>
                        <FTREF/>
                         Accounting for such amortization, we estimate the total cost of the internal annual burden hours to be $22,000,000.
                        <SU>667</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>663</SU>
                             
                            <E T="03">See supra</E>
                             footnote 657 and accompanying text (estimating 44,134 covered entities). To calculate the number of covered entities that would send transition notices, we exclude bidders in third-party tender offers and dissidents in contested proxy solicitations. 
                            <E T="03">See supra</E>
                             section III.B.2.e. This calculation would result in 44,082 covered entities instead of 44,134 covered entities. We assume that 95% of covered entities would utilize proposed Reg E-Delivery to transition covered recipients to default e-delivery (
                            <E T="03">see supra</E>
                             footnote 658). 95% × 44,082 covered entities = 41,878 covered entities. We round this to 42,000 covered entities.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>664</SU>
                             We estimate that the initial and follow-up notices would collectively incur 3 hours of burden to develop in the first year of compliance with the rule and would only need to be performed once.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>665</SU>
                             $528 reflects a $527.50 blended wage rate, based on current estimates for an attorney ($774) and paralegal ($281). 
                            <E T="03">See supra</E>
                             footnote 2 to Table 8 (discussing calculation of the occupational hourly rates used in this release). We round this to $528.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>666</SU>
                             This estimate is based on the following calculations: 42,000 covered entities × 1 hour annualized burden = 42,000 total internal annual hour burden.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>667</SU>
                             This estimate is based on the following calculations: average total internal annual hour burden of 42,000 × $528 (blended rate for an attorney and paralegal, as discussed in 
                            <E T="03">supra</E>
                             footnote 665) = $22,176,000 total cost of the internal annual burden. The PRA internal annual time cost estimates in this release are rounded to the nearest million.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">External Burden</HD>
                    <P>
                        In addition, we estimate that covered entities would incur external costs if they rely on Reg E-Delivery and are required to provide notice of the transition to default e-delivery.
                        <SU>668</SU>
                        <FTREF/>
                         We estimate that in the first year, each covered entity would incur printing and mailing costs related to the transition notices. These costs account for the preparation and transmission of the two separate notices. We estimate that covered entities would send approximately the same number of notices for each of the initial and follow-up notices.
                        <SU>669</SU>
                        <FTREF/>
                         We estimate that 95% of covered entities would rely on Reg E-Delivery and would transition covered recipients receiving paper to e-delivery 
                        <SU>670</SU>
                        <FTREF/>
                         and that covered entities would need to send paper notices to 30% of their respective covered recipients because we estimate that percentage of covered recipients receives at least some (if not necessarily all) covered information in paper.
                        <SU>671</SU>
                        <FTREF/>
                         Based on this formulation, we estimate that 135,660,000 covered recipients 
                        <SU>672</SU>
                        <FTREF/>
                         would receive transition notices.
                        <SU>673</SU>
                        <FTREF/>
                         We estimate printing costs for the notices to be approximately $0.57 and mailing cost to be approximately $0.23.
                        <SU>674</SU>
                        <FTREF/>
                         We estimate that the annual printing and mailing costs for the transition notices would be approximately $217,000,000 in the first year and $0 in subsequent years.
                        <SU>675</SU>
                        <FTREF/>
                         Amortized over three years, we estimate annual external burden costs of approximately $72,000,000.
                        <SU>676</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>668</SU>
                             We note that cost estimates may vary across covered entities based on factors that include whether they rely on a service provider or intermediary for the delivery of notices and maintenance of relevant systems and procedures.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>669</SU>
                             Some covered recipients would not need to receive a subsequent notice if they update or confirm an electronic address in response to the initial notice (
                            <E T="03">see supra</E>
                             section II.D.2) so this likely is an overestimate.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>670</SU>
                             
                            <E T="03">See supra</E>
                             footnote 663 and accompanying text.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>671</SU>
                             We estimate 30% of covered recipients are covered recipients receiving paper after averaging data of persons currently receiving mail provided in the Broadridge Survey presented in Table 1 “Survey Evidence: Alignment between Form and Preference of Delivery (E-Delivery vs. Paper Mail” 
                            <E T="03">supra</E>
                             section III.B.3. We note that the ICI Survey found that 84% of fund investors recall receiving at least some of their financial documents electronically. More specifically 51% recalled receiving all documents in paper, 33% both electronic and paper documents, and 16% receive paper only. 
                            <E T="03">See</E>
                             ICI Survey, 
                            <E T="03">supra</E>
                             footnote 25.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>672</SU>
                             
                            <E T="03">See supra</E>
                             section III.B.2 discussing our estimation of covered recipient aggregate household accounts. Our estimates indicate that as of December 31, 2025, that registered investment companies (including business development companies) had 75 million households; registered investment advisers had 65 million clients; broker-dealers had 308 million customer accounts at carrying brokers; and corporate issuers (excluding business development companies) had 28 million households for a total of 476 million covered recipients.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>673</SU>
                             This estimate is based on the following calculations: (476 million total number of covered recipients) × 0.95 (percentage of covered entities utilizing transition) × 0.30 (percentage of covered recipients receiving paper) = 135,660,000 total number of covered recipients who will receive transition notice mailings.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>674</SU>
                             
                            <E T="03">See</E>
                             ICI Letter 
                            <E T="03">supra</E>
                             footnote 17 (outlining printing and mailing costs in Table 2). We estimate that the notice's mailing and print costs would be similar to that of fund shareholder reports in length and operational burden ($0.57 for print costs and $0.23 for mailing costs, respectively).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>675</SU>
                             $0.80 ($0.57 + $0.23, 
                            <E T="03">see supra</E>
                             footnote 674) × 135,660,000 covered recipients × 2 notices in year 1 = $217,056,000. We round this to the nearest million.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>676</SU>
                             $217,000,000/3 = $72,333,333. We round this to the nearest million.
                        </P>
                    </FTNT>
                    <GPOTABLE COLS="5" OPTS="L2,nj,i1" CDEF="s100,12,r50,8,r50">
                        <TTITLE>Table 13—Reg E-Delivery § 303.104 PRA Estimates</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Internal initial hour burdens</CHED>
                            <CHED H="1">
                                Internal annual burden 
                                <SU>1</SU>
                            </CHED>
                            <CHED H="1">Wage rate</CHED>
                            <CHED H="1">Internal annual time costs</CHED>
                        </BOXHD>
                        <ROW EXPSTB="04" RUL="s">
                            <ENT I="21">
                                <E T="02">PROPOSED ESTIMATES FOR REG E-DELIVERY § 303.104</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00">
                            <ENT I="01">Internal preparation of notices</ENT>
                            <ENT>3 </ENT>
                            <ENT>
                                1 hour 
                                <SU>3</SU>
                            </ENT>
                            <ENT>
                                $528 
                                <SU>2</SU>
                            </ENT>
                            <ENT>$528.</ENT>
                        </ROW>
                        <ROW RUL="s">
                            <ENT I="01">
                                Number of responses 
                                <SU>4</SU>
                            </ENT>
                            <ENT/>
                            <ENT>× 42,000 responses</ENT>
                            <ENT/>
                            <ENT>× 42,000 responses.</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total initial internal burden</ENT>
                            <ENT/>
                            <ENT>42,000 hours</ENT>
                            <ENT/>
                            <ENT>
                                Total initial internal burden hours
                                <LI>
                                    $22,000,000.
                                    <SU>5</SU>
                                </LI>
                            </ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Notes:</E>
                        </TNOTE>
                        <TNOTE>
                            <SU>1</SU>
                             Includes initial burden estimates annualized over a 3-year period. After the initial dissemination of the transition notices we do not anticipate additional costs related to the notices.
                            <PRTPAGE P="45969"/>
                        </TNOTE>
                        <TNOTE>
                            <SU>2.</SU>
                             $528 reflects a $527.50 blended wage rate, based on current estimates for an attorney ($774) and paralegal ($281). We round this to $528.
                        </TNOTE>
                        <TNOTE>
                            <SU>3</SU>
                             This estimate assumes that, after the initial 3 hours that a covered entity would spend on compliance burdens relating to developing the notices, there would be no further ongoing compliance cost related to developing the notices. The amortized annual estimate of 1 hour is based on the following calculation: (3 initial hour burden/3 years) = 1 hour.
                        </TNOTE>
                        <TNOTE>
                            <SU>4</SU>
                             This estimate assumes that, because each covered entity prepares general or template disclosure that would be provided to covered recipients, there is 1 response per covered entity (therefore, number of responses = number of covered entities relying on Reg E-Delivery).
                        </TNOTE>
                        <TNOTE>
                            <SU>5</SU>
                             $528 × 42,000 = $22,176,000. The PRA internal annual time cost estimates in this release are rounded to the nearest million.
                        </TNOTE>
                    </GPOTABLE>
                    <GPOTABLE COLS="7" OPTS="L2,nj,p8,8/8,i1" CDEF="s100,12,4C,8,8,16,16">
                        <TTITLE>Table 14—Reg E-Delivery § 303.104 External Printing and Mailing Estimates</TTITLE>
                        <BOXHD>
                            <CHED H="1"> </CHED>
                            <CHED H="1">
                                Covered
                                <LI>recipient </LI>
                                <LI>accounts</LI>
                            </CHED>
                            <CHED H="1"> </CHED>
                            <CHED H="1">Cost per notice</CHED>
                            <CHED H="1">Number of notices</CHED>
                            <CHED H="1">
                                Initial external 
                                <LI>burden costs</LI>
                            </CHED>
                            <CHED H="1">
                                External annual
                                <LI>burden cost</LI>
                            </CHED>
                        </BOXHD>
                        <ROW EXPSTB="06" RUL="s">
                            <ENT I="21">
                                <E T="02">PROPOSED ESTIMATES FOR REG E-DELIVERY § 303.104</E>
                            </ENT>
                        </ROW>
                        <ROW EXPSTB="00" RUL="n,s">
                            <ENT I="01">External printing and mailing costs</ENT>
                            <ENT>
                                135,660,000 
                                <SU>1</SU>
                            </ENT>
                            <ENT>×</ENT>
                            <ENT>
                                <SU>2</SU>
                                 $0.80
                            </ENT>
                            <ENT>×  2</ENT>
                            <ENT>
                                <SU>3</SU>
                                 $217,000,000
                            </ENT>
                            <ENT>
                                <SU>4</SU>
                                 72,000,000
                            </ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total annual burden for § 104</ENT>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                            <ENT/>
                            <ENT>$72,000,000</ENT>
                        </ROW>
                        <TNOTE>
                            <E T="02">Notes:</E>
                        </TNOTE>
                        <TNOTE>
                            <SU>1</SU>
                             This estimate is based on the following calculations: (476 million total number of covered recipients) × 0.95 (percentage of covered entities utilizing transition) × 0.30 (percentage of covered recipients receiving paper) = 135,660,000 total number of covered recipients who would receive transition notice mailings.
                        </TNOTE>
                        <TNOTE>
                            <SU>2</SU>
                             
                            <E T="03">See</E>
                             ICI Survey (outlining printing and mailing costs in Table 2). We estimate that the notice's mailing and print costs would be similar to that of fund shareholder reports in length and operational burden ($0.57 for mailing costs and $0.23 for print cost, respectively).
                        </TNOTE>
                        <TNOTE>
                            <SU>3</SU>
                             
                            <E T="03">See supra</E>
                             footnote 661.
                        </TNOTE>
                        <TNOTE>
                            <SU>3</SU>
                             Includes initial printing and mailing burden estimates of the notices annualized over a 3-year period. After the initial dissemination of the transition notices, we do not anticipate additional costs related to the notices.
                        </TNOTE>
                        <TNOTE>
                            <SU>4</SU>
                             We estimate that, in the first year, each covered entity would incur printing and mailing costs related to the transition notices, and would incur no print and mail costs in subsequent years. The external annual burden cost estimate of $72,000,000 is based on the following calculation: ($217,000,000 initial external printing and mailing costs/3) = $72,333,333 rounded to the nearest million, $72,000,000.
                        </TNOTE>
                    </GPOTABLE>
                    <HD SOURCE="HD2">G. Reg E-Delivery: Aggregate Paperwork Reduction Act Burden</HD>
                    <P>We estimate that the aggregate burden to comply with Reg E-Delivery would be: 567,000 annual internal hour burden, $307,000,000 annual internal cost burden, and $93,000,000 annual external cost burden:</P>
                    <GPOTABLE COLS="4" OPTS="L2,nj,tp0,p8,8/8,i1" CDEF="s150,10,12,12">
                        <TTITLE> </TTITLE>
                        <BOXHD>
                            <CHED H="1">Reg E-Delivery information collection</CHED>
                            <CHED H="1">
                                Annual 
                                <LI>internal </LI>
                                <LI>hour burden </LI>
                                <LI>(hours)</LI>
                            </CHED>
                            <CHED H="1">Annual internal cost burden</CHED>
                            <CHED H="1">
                                Annual 
                                <LI>external cost burden</LI>
                            </CHED>
                        </BOXHD>
                        <ROW>
                            <ENT I="01">Disclosure of Electronic Delivery (Reg E-Delivery § 303.102(b))</ENT>
                            <ENT>42,000 </ENT>
                            <ENT>$22,000,000</ENT>
                            <ENT>N/A</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">E-Delivery Methods (Reg E-Delivery § 303.102(c))</ENT>
                            <ENT>252,000 </ENT>
                            <ENT>133,000,000</ENT>
                            <ENT>N/A</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Delivery of Covered Information in Paper on Request (Reg E-Delivery § 303.102(f))</ENT>
                            <ENT>42,000 </ENT>
                            <ENT>22,000,000</ENT>
                            <ENT>21,000,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Adoption and Implementation of Written Policies and Procedures Regarding E-Delivery Failures (Reg E-Delivery § 303.102(h))</ENT>
                            <ENT>84,000 </ENT>
                            <ENT>44,000,000</ENT>
                            <ENT>N/A</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="01">Requirements for Website Availability of Covered Information (Reg E-Delivery § 303.103)</ENT>
                            <ENT>105,000 </ENT>
                            <ENT>64,000,000</ENT>
                            <ENT>N/A</ENT>
                        </ROW>
                        <ROW RUL="n,s">
                            <ENT I="01">Initial and Follow-Up Notices (Reg E-Delivery § 303.104)</ENT>
                            <ENT>42,000 </ENT>
                            <ENT>22,000,000</ENT>
                            <ENT>72,000,000</ENT>
                        </ROW>
                        <ROW>
                            <ENT I="03">Total Burden</ENT>
                            <ENT>567,000 </ENT>
                            <ENT>307,000,000</ENT>
                            <ENT>93,000,000</ENT>
                        </ROW>
                    </GPOTABLE>
                    <HD SOURCE="HD2">H. Rule 30e-3</HD>
                    <P>
                        In our most recent PRA submission for rule 30e-3 under the Investment Company Act, we estimated for this rule a total hour burden of 1,406 hours and a total annual external cost burden of $5,129,088.
                        <SU>677</SU>
                        <FTREF/>
                         Because we are proposing to rescind rule 30e-3, those PRA burdens would be reduced to zero.
                    </P>
                    <FTNT>
                        <P>
                            <SU>677</SU>
                             This estimate is based on the last time the rule's information collection was submitted for PRA renewal in 2025.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">I. Regulations 14A and 14C and Rule 14d-5</HD>
                    <P>
                        As we discuss in greater detail above,
                        <SU>678</SU>
                        <FTREF/>
                         Regulations 14A and 14C prescribe specific requirements for issuers and other soliciting persons to furnish proxy materials and information statements to shareholders.
                        <SU>679</SU>
                        <FTREF/>
                         Under the current proxy rules, an issuer or other soliciting person may furnish proxy materials to shareholders by delivering a notice of internet availability or a full set of proxy materials.
                        <SU>680</SU>
                        <FTREF/>
                         Moreover, if the issuer or other soliciting person has obtained affirmative consent to electronic delivery of proxy materials from a record holder, the issuer or other soliciting person could deliver the notice of internet availability or the full set to the record holder electronically. We are proposing to expressly incorporate the requirements associated with the permitted e-delivery methods and the requirements for website availability of information under Reg E-Delivery into the delivery framework for proxy materials and information statements while preserving certain requirements unique to proxy statements and information statements required to be delivered under Regulations 14A and 14C.
                        <SU>681</SU>
                        <FTREF/>
                         We are also proposing amendments that would streamline the existing proxy rules by revising or removing requirements that are outdated or would be unnecessary if Reg E-Delivery is adopted.
                        <SU>682</SU>
                        <FTREF/>
                         One result of these amendments would be that if an issuer, other soliciting person, or intermediary were to use e-delivery to furnish proxy materials or an information statement, the issuer, other soliciting person, or intermediary would 
                        <PRTPAGE P="45970"/>
                        be required to comply with the requirements associated with the permitted e-delivery methods (
                        <E T="03">i.e.,</E>
                         a statement of availability of proxy materials or direct delivery of proxy materials) and website availability of information under Reg E-Delivery, in addition to the requirements in proposed amended Regulations 14A and 14C. Another result of these amendments would be that if an issuer or other soliciting person were to use the notice and access model to furnish a proxy statement or an information statement, the notice would not be permitted to be sent in paper form. Instead, an issuer or other soliciting person would be required to send such notice (
                        <E T="03">i.e.,</E>
                         a statement of availability of proxy materials) electronically.
                    </P>
                    <FTNT>
                        <P>
                            <SU>678</SU>
                             
                            <E T="03">See supra</E>
                             section II.F.2.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>679</SU>
                             
                            <E T="03">See</E>
                             rule 14a-16.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>680</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>681</SU>
                             
                            <E T="03">See supra</E>
                             section II.F.2.b.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>682</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        We recognize that, because the proposed amendments to Regulations 14A 
                        <SU>683</SU>
                        <FTREF/>
                         and 14C 
                        <SU>684</SU>
                        <FTREF/>
                         could change the way in which the notice would be required to be provided for certain shareholders (
                        <E T="03">i.e.,</E>
                         electronically rather than in paper form), the proposed amendments could reduce some of the paperwork burdens associated with Regulations 14A and 14C.
                        <SU>685</SU>
                        <FTREF/>
                         We also note, however, that the proposed amendments would not eliminate any information collection requirements under Regulation 14A or 14C or significantly alter the substance of the notice that an issuer or other soliciting person would be required to provide to shareholders under those regulations. Because we cannot estimate with precision the potential reduction in burden associated with the proposed amendments, and in order to err on the side of potentially overstating burdens rather than understating burdens, we do not estimate any reduction in the paperwork burdens associated with Regulations 14A and 14C. Additionally, many of the content requirements for the direct delivery of covered information apply to the statement of availability under Reg E-Delivery. While the content required in the statement of availability under Reg E-Delivery (which is incorporated into proposed amended rule 14a-16) 
                        <SU>686</SU>
                        <FTREF/>
                         is similar to the content required in the notice of internet availability under current rule 14a-16,
                        <SU>687</SU>
                        <FTREF/>
                         there are no corresponding content requirements in current rule 14a-16 for the direct e-delivery of proxy materials. However, we expect the content required in a direct e-delivery of proxy materials to be similar to the content included in a direct e-delivery of proxy materials in the absence of such requirements, with a modest increase in content. As a result, we do not believe that these requirements will increase the annual burden associated with collections of information under Regulations 14A and 14C, nor do we believe there will be any change in the information collection for Regulation 14D as a result of the changes to rule 14d-5.
                    </P>
                    <FTNT>
                        <P>
                            <SU>683</SU>
                             OMB Control No. 3235-0059.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>684</SU>
                             OMB Control No. 3235-0057.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>685</SU>
                             
                            <E T="03">See</E>
                             E-Proxy Adopting Release at 4161 (discussing the estimated burden hours for these collections of information).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>686</SU>
                             
                            <E T="03">See</E>
                             proposed rule 14a-16(c)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>687</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.14a-16(d).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">J. Request for Comment</HD>
                    <P>
                        We request comment on whether these estimates are reasonable. Pursuant to 44 U.S.C. 3506(c)(2)(B), the Commission solicits comments in order to: (1) evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information will have practical utility; (2) evaluate the accuracy of the Commission's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) determine whether there are ways to enhance the quality, utility, and clarity of the information to be collected; and (4) determine whether there are 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. Persons wishing to submit comments on the collection of information requirements of the proposed amendments should direct them to the OMB Desk Officer for the Securities and Exchange Commission, 
                        <E T="03">MBX.OMB.OIRA.SEC_desk_officer@omb.eop.gov</E>
                        , and should send a copy to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, using any of the methods in the 
                        <E T="02">ADDRESSES</E>
                         section, with reference to File No. S7-2026-25. OMB is required to make a decision concerning the collections of information between 30 and 60 days after publication of this release; therefore a comment to OMB is best assured of having its full effect if OMB receives it within 30 days after publication of this release. Requests for materials submitted to OMB by the Commission with regard to these collections of information should be in writing, refer to File No. S7-2026-25, and be submitted to the Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736.
                    </P>
                    <HD SOURCE="HD1">V. Initial Regulatory Flexibility Analysis</HD>
                    <P>
                        The Regulatory Flexibility Act (“RFA”) requires an agency, when issuing a rulemaking proposal, to prepare and make available for public comment an Initial Regulatory Flexibility Analysis (“IRFA”) that describes the impact of the proposed rule on small entities, unless the Commission certifies that the rule, if adopted, would not have a significant economic impact on a substantial number of small entities.
                        <SU>688</SU>
                        <FTREF/>
                         This IRFA has been prepared in accordance with the RFA. It relates to the proposed new Reg E-Delivery.
                    </P>
                    <FTNT>
                        <P>
                            <SU>688</SU>
                             
                            <E T="03">See</E>
                             5 U.S.C. 601 
                            <E T="03">et seq.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">A. Reasons for and Objectives of the Proposed Actions</HD>
                    <P>
                        Proposed Reg E-Delivery would permit the use of default e-delivery (that is, using e-delivery as the default delivery method, with the ability to opt out of default e-delivery, and also to receive paper copies of covered information on request). In addition, regardless of whether an entity chooses to use default e-delivery, Reg E-Delivery would establish conditions under which the Commission would consider delivery requirements under the Federal securities laws to have been satisfied by e-delivery. These are designed to help ensure that investors and other recipients receive information in their preferred format, particularly in view of the default e-delivery approach that would be permitted under the proposed rule. The proposal also is designed to encourage the benefits that increased e-delivery would bring to recipients of regulatory information, for example through increased accessibility, security, and the opportunity for a more engaging experience with disclosure. To facilitate the proposed e-delivery rule and to take a modernized approach to the use of electronic media in Commission rules and forms, we are also proposing to rescind and make amendments to current Commission rules.
                        <SU>689</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>689</SU>
                             Rule 30e-3 under the Investment Company Act and certain rules in Regulations 14A and 14C and rule 14d-5 under the Exchange Act.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">B. Legal Basis</HD>
                    <P>
                        The Commission is proposing the rules contained in this document under the authority set forth in the Securities Act, particularly, sections 3(b), 4(a)(2), 4A, 7, 10, 19, 27A, and 28 thereof [15 U.S.C. 77a 
                        <E T="03">et seq.</E>
                        ]; the Trust Indenture Act, particularly sections 304, 305, 314, and 319 thereof [15 U.S.C. 77ddd-eee, 77nnn, 77sss]; the Exchange Act, 
                        <PRTPAGE P="45971"/>
                        particularly, sections 3D, 13, 14, 15, 15F, 17A, 23 and 35A thereof [15 U.S.C. 78a 
                        <E T="03">et seq.</E>
                        ]; the Investment Company Act, particularly, sections 6, 8, 19, 20, 24, 30, and 38 thereof [15 U.S.C. 80a 
                        <E T="03">et seq.</E>
                        ]; the Advisers Act, particularly, sections 203(c)(1), 204, 206A, and 211(a) [15 U.S.C. 80b-3(c)(1), 80B-, and 80b-11(a)]; and the E-SIGN Act, particularly section 104(d)(1) [15 U.S.C. 7001 
                        <E T="03">et seq.</E>
                        ].
                    </P>
                    <HD SOURCE="HD2">C. Small Entities Subject to the Proposed Rule</HD>
                    <P>
                        Proposed Reg E-Delivery would be available to any entity required to deliver covered information to a covered recipient, including entities that are considered to be a small business or small organization (collectively, “small entity”) for purposes of the RFA.
                        <SU>690</SU>
                        <FTREF/>
                         For purposes of the RFA, under the Exchange Act a broker, dealer, or funding portal is a small entity if it: (1) had total capital of less than $500,000 on the date in its prior fiscal year as of which its audited financial statements were prepared or, if not required to file audited financial statements, on the last business day of its prior fiscal year; and (2) is not affiliated with any person that is not a small entity.
                        <SU>691</SU>
                        <FTREF/>
                         Under the Investment Company Act, an investment company is a small entity if, together with other investment companies in the same group of related investment companies, it has net assets of $50 million or less as of the end of its most recent fiscal year.
                        <SU>692</SU>
                        <FTREF/>
                         Under the Advisers Act, a small entity is an investment adviser that: (1) manages less than $25 million in assets; (2) has total assets of less than $5 million on the last day of its most recent fiscal year; and (3) does not control, is not controlled by, and is not under common control with another investment adviser that manages $25 million or more in assets, or any person that has had total assets of $5 million or more on the last day of the most recent fiscal year.
                        <SU>693</SU>
                        <FTREF/>
                         For purposes of the RFA, under our rules under the Securities Act and the Exchange Act, an issuer of securities or a person, other than an investment company, is a “small business” or “small organization” it if had total assets on the last day of its most recent fiscal year of $5 million or less and that is engaged or proposing to engage in small business financing.
                        <SU>694</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>690</SU>
                             The Commission has a pending proposal addressing the definition under the Investment Company Act and Advisers Act of small organization and small business for purposes of the Regulatory Flexibility Act. The Commission encourages commenters to review the proposal to determine whether it might affect their comments on this IRFA. 
                            <E T="03">See</E>
                             Amendments to the “Small Business” and “Small Organization” Definitions for Investment Companies and Investment Advisers for Purposes of the Regulatory Flexibility Act, Investment Company Act Release No. 35864 (Jan. 7, 2026) [91 FR 1107 (Jan. 12, 2026)].
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>691</SU>
                             17 CFR 240.0-10.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>692</SU>
                             17 CFR 270.0-10(a).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>693</SU>
                             17 CFR 275.0-7.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>694</SU>
                             17 CFR 230.157 and 17 CFR 240.0-10(a). The Commission has proposed amendments to the definitions of “small business” and “small organization” in 17 CFR 230.157 and 17 CFR 240.0-10(a). 
                            <E T="03">See</E>
                             Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies, Securities Act Release No. 11419 (May 19, 2026) [91 FR 30086 (May 21, 2026)]. We encourage commenters to review that proposal to determine whether it might affect their comments on this IRFA.
                        </P>
                    </FTNT>
                    <P>
                        Based on Commission filings, we estimate that approximately 630 broker-dealers,
                        <SU>695</SU>
                        <FTREF/>
                         73 funding portals,
                        <SU>696</SU>
                        <FTREF/>
                         129 transfer agents,
                        <SU>697</SU>
                        <FTREF/>
                         67 investment companies,
                        <SU>698</SU>
                        <FTREF/>
                         466 registered investment advisers,
                        <SU>699</SU>
                        <FTREF/>
                         and 707 issuers 
                        <SU>700</SU>
                        <FTREF/>
                         may be considered small entities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>695</SU>
                             Estimate based on FOCUS Report data collected by the Commission as of 2025 Q4.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>696</SU>
                             Estimate based on staff analysis and public filings.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>697</SU>
                             Estimate based on the transfer agents who reported a value of fewer than 1,000 in response to questions 4(a) and 5(a) on the latest Form TA-2(/A) as of December 31, 2025.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>698</SU>
                             Based on Commission staff approximation that as of December 2025, approximately 27 open-end funds (including 7 exchange-traded funds), 34 closed-end funds, 1 unit investment trust and 5 business development companies are small entities.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>699</SU>
                             Estimate based on Form ADV data for the reporting period ending December 2025 with filings received through March 31, 2026.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>700</SU>
                             Estimate based on staff analysis of issuers that filed an annual report (
                            <E T="03">i.e.,</E>
                             Form 10-K, Form 20-F, or Form 40-F), excluding BDCs and issuers of asset-backed securities, in calendar year 2025 and had total assets of $5 million or less on the last day of the fiscal year covered in that annual report.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">D. Projected Reporting, Recordkeeping, and Other Compliance Requirements</HD>
                    <P>The proposed rule would create, amend, or eliminate current reporting, recordkeeping, or other compliance requirements for small entities.</P>
                    <P>
                        Reg E-Delivery is designed to be a regulatory safe harbor to permit the use of e-delivery as the default method of delivery, subject to appropriate conditions.
                        <SU>701</SU>
                        <FTREF/>
                         As described above, proposed Reg E-Delivery also would establish conditions under which the Commission would consider delivery requirements under the Federal securities laws to have been satisfied by e-delivery. In addition to Reg E-Delivery, we are also proposing to rescind and make amendments to current Commission rules to facilitate the proposed e-delivery rule and to take a modernized approach to the use of electronic media in Commission rules and forms.
                        <SU>702</SU>
                        <FTREF/>
                         Covered entities would not be required to deliver covered information under the proposed rule, insofar as they would not be required to use e-delivery to deliver covered information. Additionally, as discussed above, the Commission recognizes that while Reg E-Delivery would be the only regulatory safe harbor whereby a covered entity would be deemed to have satisfied applicable delivery requirements under the Federal securities laws using e-delivery (with limited exception), a covered entity could develop a method of e-delivery that differs from Reg E-Delivery but results in the required information being delivered in a manner that satisfies applicable delivery requirements under the Federal securities laws. Further, Reg E-Delivery provides a framework under which many covered entities are able to deliver covered information using a variety of methods that are appropriate to their resources and business model. In some important respects related to investor protection, such as transition notices and protection of PFI, there are specific requirements to which covered entities must adhere if they rely on Reg E-Delivery. For those covered entities that would choose to deliver covered information using e-delivery subject to the requirements of proposed Reg E-Delivery, there may be some aspects of these requirements that would present particular challenges to covered entities that are small entities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>701</SU>
                             
                            <E T="03">See supra</E>
                             section II.A.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>702</SU>
                             
                            <E T="03">See supra</E>
                             footnote 689.
                        </P>
                    </FTNT>
                    <P>For example, proposed Reg E-Delivery would provide requirements for website availability of covered information, but some small entities do not currently have a website. As discussed above, covered entities would be able to deliver covered information using one of several permissible methods under the proposed rule, including direct delivery of covered information that does not include PFI, which would not require the use of a website. The use of a website for e-delivery is therefore optional for covered entities delivering covered information that does not include PFI, and these provisions of the rule would only apply to covered entities that choose to e-deliver covered information under the proposed rule as part of their business model.</P>
                    <P>
                        Proposed Reg E-Delivery would require PFI to only be accessible through a specified process reasonably designed to safeguard the covered information. Some small entities may not have user portals protected by a password (or other process reasonably designed to safeguard the PFI) or systems to automatically filter PFI, and therefore may incur greater expenses in securing such information. Nevertheless, we expect most, if not all, small entities to already have some 
                        <PRTPAGE P="45972"/>
                        processes in place for handling various types of personal information. The Commission has provided provisions in the 1996 Guidance for PFI, and protecting sensitive personal information is already covered by various duties covered entities have and the Commission rules regarding protection of such information by most covered entities regardless of size.
                        <SU>703</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>703</SU>
                             
                            <E T="03">See</E>
                             Reg S-P.
                        </P>
                    </FTNT>
                    <P>Proposed Reg E-Delivery would require covered entities to provide paper copies of covered information free of charge on request in certain circumstances. Some small entities may not have agreements in place to deliver paper copies on demand and would incur greater expense per delivery than larger firms with established processes to meet these requirements. We are requesting comment on providing additional time for small entities to provide paper copies.</P>
                    <P>Proposed Reg E-Delivery would require mailing of notices to covered recipients during the transition process for default e-delivery. Some small entities may not have systems in place for mass mailing to covered recipients that are required for those notices. Such services are available in the market for small entities to purchase. We acknowledge that small entities may pay a higher rate for this service than large clients, but notifying covered recipients of this change and appraising them of their ability to opt out of e-delivery is critical to protecting covered recipients during this transition.</P>
                    <P>Reg E-Delivery would require covered entities to allow covered recipients to receive certain documents in paper on a document-by-document basis. Providing different means of delivery for different documents may be particularly challenging for small entities. We are requesting comment on allowing small entities to offer only all-or-nothing paper delivery for those who elect paper.</P>
                    <HD SOURCE="HD2">E. Duplicative, Overlapping, or Conflicting Federal Rules</HD>
                    <P>
                        Reg E-Delivery, if adopted, would be the only regulatory safe harbor for e-delivery by covered entities under the Federal securities laws, so it is not duplicative of other rules or regulations. There are other data privacy rules (including Regulation S-P) that may overlap with the PFI provisions in some ways, but these generally do not create significant additional burden since information needs to only be protected once, even if this is required by different rules. Similarly, there are other Commission rules on web posting of information.
                        <SU>704</SU>
                        <FTREF/>
                         Additionally, some Commission registrants that also serve retirement plans may be subject to Department of Labor delivery rules and regulations governing ERISA disclosures.
                        <SU>705</SU>
                        <FTREF/>
                         While some aspects of these disclosure requirements may overlap with the proposed disclosure requirements of covered entities, they do not impose duplicative burdens because to the extent the same disclosure is required by multiple rules or regulations, a covered entity's obligations are generally satisfied once disclosure is made once.
                    </P>
                    <FTNT>
                        <P>
                            <SU>704</SU>
                             
                            <E T="03">See, e.g.,</E>
                             rule 30-1 under the Investment Company Act; rule 498 under the Securities Act.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>705</SU>
                             
                            <E T="03">See</E>
                             29 CFR 2520.104b-1(c); 29 CFR 2520.104b-31; section 338 of the SECURE 2.0 Act.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD2">F. Significant Alternatives</HD>
                    <P>The RFA directs the Commission to consider significant alternatives that would accomplish our stated objectives, while minimizing any significant economic impact on small entities. The Commission considered several alternatives for small entities in relation to our proposed amendments such as establishing different time frames to provide paper copies of documents or permitting small entities to provide only for all-or-nothing paper delivery for those who elect paper (as opposed to permitting covered recipients to pick and choose what covered information they would receive electronically) to account for resources available to small entities. We understand that current e-delivery practices under the E-Delivery Guidance do not significantly vary among small entities versus larger entities. The Commission believes that establishing different e-delivery requirements for small entities would not be consistent with the Commission's goal of industry oversight and investor protection.</P>
                    <HD SOURCE="HD2">G. General Request for Comment</HD>
                    <P>The Commission requests comments regarding this IRFA. We request comments on the number of small entities that may be affected by our proposed rules and guidelines, and whether the proposed rules and guidelines would have any effects not considered in this analysis. We request that commenters describe the nature of any effects on small entities subject to the rules, and provide empirical data to support the nature and extent of such effects. We also request comment on the proposed compliance burdens and the effect these burdens would have on smaller entities.</P>
                    <HD SOURCE="HD2">VI. Congressional Review Act</HD>
                    <P>
                        For purposes of Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996 (also known as the Congressional Review Act),
                        <SU>706</SU>
                        <FTREF/>
                         the Commission must seek OMB's determination whether a final regulation constitutes a “major” rule. Under the Act, a rule is considered “major” where, if adopted, it results in or is likely to result in:
                    </P>
                    <FTNT>
                        <P>
                            <SU>706</SU>
                             
                            <E T="03">See</E>
                             5 U.S.C. chapter 8.
                        </P>
                    </FTNT>
                    <P>• An annual effect on the economy of $100 million or more;</P>
                    <P>• A major increase in costs or prices for consumers or individual industries; or</P>
                    <P>
                        • Significant adverse effects on competition, investment, or innovation.
                        <SU>707</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>707</SU>
                             
                            <E T="03">See</E>
                             5 U.S.C. 804(2) (defining “major rule”).
                        </P>
                    </FTNT>
                    <P>To help inform OMB's determination whether any final rule that results from the proposal would be a “major rule,” we solicit comment and data on:</P>
                    <P>• The potential effect on the U.S. economy on an annual basis;</P>
                    <P>• Any potential increase in costs or prices for consumers or individual industries; and</P>
                    <P>• Any potential effect on competition, investment, or innovation.</P>
                    <P>Commenters are requested to provide empirical data and other factual support, to the extent possible, to inform this decision regarding whether the final rule following this proposal is likely to be a “major rule” for the purposes of the Congressional Review Act. Based on current information available to SEC, we believe this rule, if finalized as proposed, is likely to be a “major rule.”</P>
                    <HD SOURCE="HD1">VII. Other Matters</HD>
                    <P>This action is an economically significant regulatory action under section 3(f)(1) of Executive Order 12866 and has been reviewed by the Office of Management and Budget. This action, if finalized as proposed, is expected to be an Executive Order 14192 deregulatory action.</P>
                    <HD SOURCE="HD3">Statutory Authority</HD>
                    <P>
                        The Commission is proposing the rules contained in this document under the authority set forth in the Securities Act, particularly, sections 3(b), 4(a)(2), 4A, 7, 10, 19, 27A, and 28 thereof [15 U.S.C. 77a 
                        <E T="03">et seq.</E>
                        ]; the Trust Indenture Act, particularly sections 304, 305, 314, and 319 thereof [15 U.S.C. 77ddd-eee, 77nnn, 77sss]; the Exchange Act, particularly, sections 3D, 13, 14, 15, 15F, 17A, 23, and 35A thereof [15 U.S.C. 78a 
                        <E T="03">et seq.</E>
                        ]; the Investment Company Act, particularly, sections 6, 8, 19, 20, 
                        <PRTPAGE P="45973"/>
                        24, 30, and 38 thereof [15 U.S.C. 80a 
                        <E T="03">et seq.</E>
                        ]; the Advisers Act, particularly, sections 203(c)(1), 204, 206A, and 211(a) [15 U.S.C. 80b-3(c)(1), 80b-4, and 80b-11(a)]; and the E-SIGN Act, particularly section 104(d)(1) [15 U.S.C. 7001 
                        <E T="03">et seq.</E>
                        ].
                    </P>
                    <LSTSUB>
                        <HD SOURCE="HED">List of Subjects</HD>
                        <CFR>17 CFR Part 240</CFR>
                        <P>Brokers, Reporting and recordkeeping requirements, Securities.</P>
                        <CFR>17 CFR Part 270</CFR>
                        <P>Investment companies, Reporting and recordkeeping requirements, Securities.</P>
                        <CFR>17 CFR Part 303</CFR>
                        <P>Brokers, Communications, Computer technology, Electronic filing, internet, Investment companies, Personally identifiable information, Reporting and recordkeeping requirements, Securities.</P>
                    </LSTSUB>
                    <PART>
                        <HD SOURCE="HED">PART 240—GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934</HD>
                    </PART>
                    <AMDPAR>1. The general authority citation for part 240 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>
                            15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77Z-2, 77Z-3, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78c-3, 78c-5, 78d, 78e, 78f, 78g, 78i, 78j, 78j-1, 78j-4, 78k, 78k-1, 78
                            <E T="03">l,</E>
                             78m, 78n, 78n-1, 78
                            <E T="03">o,</E>
                             78
                            <E T="03">o</E>
                            -4, 78
                            <E T="03">o</E>
                            -10, 78p, 78q, 78q-1, 78s, 78u-5, 78w, 78x, 78dd, 78
                            <E T="03">ll,</E>
                             78mm, 80a-20, 80a-23, 80a-29, 80a-37, 80b-3, 80b-4, 80b-11, 1681w(a)(1), 6801-6809, 6825, 7201 
                            <E T="03">et seq.,</E>
                             and 8302; 7 U.S.C. 2(c)(2)(E); 12 U.S.C. 5221(e)(3); 18 U.S.C. 1350; and Pub. L. 111-203, 939A, 124 Stat. 1376 (2010); and Pub. L. 112-106, sec. 503 and 602, 126 Stat. 326 (2012), unless otherwise noted.
                        </P>
                    </AUTH>
                    <EXTRACT>
                        <STARS/>
                        <P>Sections 240.14a-1, 240.14a-3, 240.14a-13, 240.14b-1, 240.14b-2, 240.14c-1, and 240.14c-7 also issued under secs. 12, 15 U.S.C. 781, and 14, Pub. L. 99-222, 99 Stat. 1737, 15 U.S.C. 78n.</P>
                        <STARS/>
                        <P>Sections 240.14a-3, 240.14a-13, 240.14b-1, and 240.14c-7 also issued under secs. 12, 14, and 17, 15 U.S.C. 781, 78n, and 78g.</P>
                        <STARS/>
                        <P>Sections 240.14c-1 to 240.14c-101 also issued under sec. 14, 48 Stat. 895; 15 U.S.C. 78n.</P>
                        <STARS/>
                        <P>Section 240.17a-3 also issued under secs. 2, 17, 23a, 48 Stat. 897, as amended; 15 U.S.C. 78d-1, 78d-2, 78q; secs. 12, 14, 17, 23(a), 48 Stat. 892, 895, 897, 901; secs. 1, 4, 8, 49 Stat. 1375, 1379; sec. 203(a), 49 Stat. 704; sec. 5, 52 Stat. 1076; sec. 202, 68 Stat. 686; secs. 3, 5, 10, 78 Stat. 565-568, 569, 570, 580; secs. 1, 3, 82 Stat. 454, 455; secs. 28(c), 3-5, 84 Stat. 1435, 1497; sec. 105(b), 88 Stat. 1503; secs. 8, 9, 14, 18, 89 Stat. 117, 118, 137, 155; 15 U.S.C. 78l, 78n, 78q, 78w(a).</P>
                        <STARS/>
                    </EXTRACT>
                    <AMDPAR>2. Amend § 240.14a-1 by revising it to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14a-1 </SECTNO>
                        <SUBJECT>Definitions.</SUBJECT>
                        <P>Unless the context otherwise requires, all terms used in this regulation have the same meanings as in the Act or elsewhere in the general rules and regulations thereunder. In addition, the following definitions apply unless the context otherwise requires:</P>
                        <P>
                            <E T="03">Address.</E>
                             The term “address” means a mailing address, which would include a street address, a post office box number, or other similar destination to which paper documents are delivered, a facsimile telephone number, or an electronic address, as defined in § 303.101 of Regulation E-Delivery (§§ 303.100 through 104).
                        </P>
                        <P>
                            <E T="03">Associate.</E>
                             The term “associate,” used to indicate a relationship with any person, means:
                        </P>
                        <P>(1) Any corporation or organization (other than the registrant or a majority owned subsidiary of the registrant) of which such person is an officer or partner or is, directly or indirectly, the beneficial owner of 10 percent or more of any class of equity securities;</P>
                        <P>(2) Any trust or other estate in which such person has a substantial beneficial interest or as to which such person serves as trustee or in a similar fiduciary capacity; and</P>
                        <P>(3) Any relative or spouse of such person, or any relative of such spouse, who has the same home as such person or who is a director or officer of the registrant or any of its parents or subsidiaries.</P>
                        <P>
                            <E T="03">Direct electronic delivery.</E>
                             The term “direct electronic delivery” means direct electronic delivery in accordance with § 303.102(c)(2) of Regulation E-Delivery.
                        </P>
                        <P>
                            <E T="03">Electronic delivery requirements.</E>
                             The term “electronic delivery requirements” means the requirements in § 303.102 of Regulation E-Delivery.
                        </P>
                        <P>
                            <E T="03">Employee benefit plan.</E>
                             For purposes of §§ 240.14a-13, 240.14b-1, and 240.14b-2, the term “employee benefit plan” means any purchase, savings, option, bonus, appreciation, profit sharing, thrift, incentive, pension, or similar plan primarily for employees, directors, trustees, or officers.
                        </P>
                        <P>
                            <E T="03">Entity that exercises fiduciary powers.</E>
                             The term “entity that exercises fiduciary powers” means any entity that holds securities in nominee name or otherwise on behalf of a beneficial owner but does not include a clearing agency registered pursuant to section 17A of the Act or a broker or a dealer.
                        </P>
                        <P>
                            <E T="03">Exempt employee benefit plan securities.</E>
                             For purposes of §§ 240.14a-13, 240.14b-1, and 240.14b-2, the term “exempt employee benefit plan securities” means:
                        </P>
                        <P>(1) Securities of the registrant held by an employee benefit plan, as defined in this section, where such plan is established by the registrant; or</P>
                        <P>(2) If notice regarding the current solicitation has been given pursuant to § 240.14a-13(a)(1)(ii)(C) or if notice regarding the current request for a list of names, addresses, and securities positions of beneficial owners has been given pursuant to § 240.14a-13(b)(3), securities of the registrant held by an employee benefit plan, as defined in this section, where such plan is established by an affiliate of the registrant.</P>
                        <P>
                            <E T="03">Last fiscal year.</E>
                             The term “last fiscal year” of the registrant means the last fiscal year of the registrant ending prior to the date of the meeting for which proxies are to be solicited or if the solicitation involves written authorizations or consents in lieu of a meeting, the earliest date they may be used to effect corporate action.
                        </P>
                        <P>
                            <E T="03">Opt out of electronic delivery.</E>
                             The term “opt out of electronic delivery” refers to opting out of electronic delivery pursuant to § 303.102(f)(2) of Regulation E-Delivery.
                        </P>
                        <P>
                            <E T="03">Proxy.</E>
                             The term “proxy” includes every proxy, consent, or authorization within the meaning of section 14(a) of the Act. The consent or authorization may take the form of failure to object or to dissent.
                        </P>
                        <P>
                            <E T="03">Proxy statement.</E>
                             The term “proxy statement” means the statement required by § 240.14a-3(a) whether or not contained in a single document.
                        </P>
                        <P>
                            <E T="03">Record date.</E>
                             The term “record date” means the date as of which the record holders of securities entitled to vote at a meeting or by written consent or authorization shall be determined.
                        </P>
                        <P>
                            <E T="03">Record holder.</E>
                             For purposes of §§ 240.14a-13, 240.14a-16, 240.14b-1, and 240.14b-2, the term “record holder” means any broker, dealer, voting trustee, bank, association, or other entity that exercises fiduciary powers which holds securities of record in nominee name or otherwise or as a participant in a clearing agency registered pursuant to section 17A of the Act.
                        </P>
                        <P>
                            <E T="03">Registrant.</E>
                             The term “registrant” means the issuer of the securities in respect of which proxies are to be solicited.
                        </P>
                        <P>
                            <E T="03">Respondent bank.</E>
                             For purposes of §§ 240.14a-13, 240.14a-16, 240.14b-1, and 240.14b-2, the term “respondent bank” means any bank, association, or other entity that exercises fiduciary powers which holds securities on behalf of beneficial owners and deposits such 
                            <PRTPAGE P="45974"/>
                            securities for safekeeping with another bank, association, or other entity that exercises fiduciary powers.
                        </P>
                        <P>
                            <E T="03">Solicitation.</E>
                        </P>
                        <P>(1) The terms “solicit” and “solicitation” include:</P>
                        <P>(i) Any request for a proxy whether or not accompanied by or included in a form of proxy:</P>
                        <P>(ii) Any request to execute or not to execute, or to revoke, a proxy; or</P>
                        <P>(iii) The furnishing of a form of proxy or other communication to security holders under circumstances reasonably calculated to result in the procurement, withholding, or revocation of a proxy, including:</P>
                        <P>(A) Any proxy voting advice that makes a recommendation to a security holder as to its vote, consent, or authorization on a specific matter for which security holder approval is solicited, and that is furnished by a person that markets its expertise as a provider of such proxy voting advice, separately from other forms of investment advice, and sells such proxy voting advice for a fee.</P>
                        <P>(B) [Reserved]</P>
                        <P>(2) The terms do not apply, however, to:</P>
                        <P>(i) The furnishing of a form of proxy to a security holder upon the unsolicited request of such security holder;</P>
                        <P>(ii) The performance by the registrant of acts required by § 240.14a-7;</P>
                        <P>(iii) The performance by any person of ministerial acts on behalf of a person soliciting a proxy;</P>
                        <P>(iv) A communication by a security holder who does not otherwise engage in a proxy solicitation (other than a solicitation exempt under § 240.14a-2) stating how the security holder intends to vote and the reasons therefor, provided that the communication:</P>
                        <P>(A) Is made by means of speeches in public forums, press releases, published or broadcast opinions, statements, or advertisements appearing in a broadcast media, or newspaper, magazine, or other bona fide publication disseminated on a regular basis,</P>
                        <P>(B) Is directed to persons to whom the security holder owes a fiduciary duty in connection with the voting of securities of a registrant held by the security holder, or</P>
                        <P>(C) Is made in response to unsolicited requests for additional information with respect to a prior communication by the security holder made pursuant to this paragraph (l)(2)(iv); or</P>
                        <P>(v) The furnishing of any proxy voting advice by a person who furnishes such advice only in response to an unprompted request.</P>
                        <P>
                            <E T="03">Statement of availability.</E>
                             The term “statement of availability” means a statement of availability delivered in accordance with § 303.102(c)(1) of Regulation E-Delivery.
                        </P>
                        <P>
                            <E T="03">website availability requirements.</E>
                             The term “website availability requirements” means the requirements in § 303.103 of Regulation E-Delivery.
                        </P>
                    </SECTION>
                    <AMDPAR>3. Amend § 240.14a-2 by revising paragraph (b)(9) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14a-2 </SECTNO>
                        <SUBJECT>Solicitations to which § 240.14a-3 to § 240.14a-15 apply.</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(9) Paragraphs (b)(1) and (b)(3) of this section shall not be available to a person furnishing proxy voting advice covered by § 240.14a-1 (“proxy voting advice business”) unless the proxy voting advice business includes in its proxy voting advice or in an electronic medium used to deliver the proxy voting advice prominent disclosure of:</P>
                        <P>(i) Any information regarding an interest, transaction, or relationship of the proxy voting advice business (or its affiliates) that is material to assessing the objectivity of the proxy voting advice in light of the circumstances of the particular interest, transaction, or relationship; and</P>
                        <P>(ii) Any policies and procedures used to identify, as well as the steps taken to address, any such material conflicts of interest arising from such interest, transaction, or relationship.</P>
                    </SECTION>
                    <AMDPAR>4. Amend § 240.14a-3 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraph (a) to remove paragraph (a)(3) and add “or” between paragraphs (a)(1) and (a)(2);</AMDPAR>
                    <AMDPAR>b. Revising paragraph (b)(2)(ii); and</AMDPAR>
                    <AMDPAR>c. Revising paragraph (e).</AMDPAR>
                    <P>The revisions read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 240.14a-3 </SECTNO>
                        <SUBJECT>Information to be furnished to security holders.</SUBJECT>
                        <P>(a) No solicitation subject to this regulation shall be made unless each person solicited is concurrently furnished or has previously been furnished with:</P>
                        <P>(1) A publicly-filed preliminary or definitive proxy statement, in the form and manner described in § 240.14a-16, containing the information specified in Schedule 14A (§ 240.14a-101); or</P>
                        <P>(2) A preliminary or definitive written proxy statement included in a registration statement filed under the Securities Act of 1933 on Form S-4 or F-4 (§ 239.25 or § 239.34 of this chapter) or Form N-14 (§ 239.23 of this chapter) and containing the information specified in such Form.</P>
                        <P>(b) * * *</P>
                        <P>(2) * * *</P>
                        <P>(ii) Where the annual report to security holders is delivered through an electronic medium, issuers may satisfy legibility requirements applicable to printed documents, such as type size and font, by presenting all required information in a widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format.</P>
                        <STARS/>
                        <P>(e)</P>
                        <P>(1)</P>
                        <P>(i) A registrant will be considered to have delivered an annual report to security holders, proxy statement, or statement of availability of proxy materials, as described in § 240.14a-16, to all security holders of record who share an address if:</P>
                        <P>(A) The registrant delivers one annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, to the shared address;</P>
                        <P>(B) The registrant addresses the annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, to the security holders as a group (for example, “ABC Fund [or Corporation] Security Holders,” “Jane Doe and Household,” “The Smith Family”), to each of the security holders individually (for example, “John Doe and Richard Jones”), or to the security holders in a form to which each of the security holders has consented in writing;</P>
                        <P>Note to paragraph (e)(1)(i)(B): Unless the registrant addresses the annual report to security holders, proxy statement, or statement of availability of proxy materials to the security holders as a group or to each of the security holders individually, it must obtain, from each security holder to be included in the household group, a separate affirmative written consent to the specific form of address the registrant will use.</P>
                        <P>(C) The security holders consent, in accordance with paragraph (e)(1)(ii) of this section, to delivery of one annual report to security holders or proxy statement, as applicable;</P>
                        <P>(D) With respect to delivery of the proxy statement, the registrant delivers, together with or subsequent to delivery of the proxy statement, a separate proxy card for each security holder at the shared address;</P>
                        <P>
                            (E) With respect to delivery of the statement of availability of proxy materials, the registrant includes for each security holder at the shared address any control/identification numbers that the security holder needs to access its form of proxy and instructions on how to access the form of proxy; and
                            <PRTPAGE P="45975"/>
                        </P>
                        <P>(F) The registrant includes an undertaking in the proxy statement to deliver promptly upon written or oral request a separate copy of the annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, to a security holder at a shared address to which a single copy of the document was delivered.</P>
                        <P>
                            (ii) 
                            <E T="03">Consent</E>
                            —
                        </P>
                        <P>
                            (A) 
                            <E T="03">Affirmative written consent.</E>
                             Each security holder must affirmatively consent, in writing, to delivery of one annual report to security holders or proxy statement, as applicable. A security holder's affirmative written consent will be considered valid only if the security holder has been informed of:
                        </P>
                        <P>
                            (
                            <E T="03">1</E>
                            ) The duration of the consent;
                        </P>
                        <P>
                            (
                            <E T="03">2</E>
                            ) The specific types of documents to which the consent will apply;
                        </P>
                        <P>
                            (
                            <E T="03">3</E>
                            ) The procedures the security holder must follow to revoke consent; and
                        </P>
                        <P>
                            (
                            <E T="03">4</E>
                            ) The registrant's obligation to begin sending individual copies to a security holder within thirty days after the security holder revokes consent.
                        </P>
                        <P>
                            (B) 
                            <E T="03">Implied consent.</E>
                             The registrant need not obtain affirmative written consent from a security holder for purposes of paragraph (e)(1)(ii)(A) of this section if all of the following conditions are met:
                        </P>
                        <P>
                            (
                            <E T="03">1</E>
                            ) The security holder has the same last name as the other security holders at the shared mailing address or the registrant reasonably believes that the security holders are members of the same family;
                        </P>
                        <P>
                            (
                            <E T="03">2</E>
                            ) The registrant has sent the security holder a notice at least 60 days before the registrant begins to rely on this section concerning delivery of annual reports to security holders, proxy statements, or statements of availability of proxy materials to that security holder. The notice must:
                        </P>
                        <P>
                            (
                            <E T="03">i</E>
                            ) Be a separate written document;
                        </P>
                        <P>
                            (
                            <E T="03">ii</E>
                            ) State that only one annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, will be delivered to the shared mailing address unless the registrant receives contrary instructions;
                        </P>
                        <P>
                            (
                            <E T="03">iii</E>
                            ) Include a toll-free telephone number, or be accompanied by a reply form that is pre-addressed with postage provided, that the security holder can use to notify the registrant that the security holder wishes to receive a separate annual report to security holders, proxy statement, or statement of availability of proxy materials;
                        </P>
                        <P>
                            (
                            <E T="03">iv</E>
                            ) State the duration of the consent;
                        </P>
                        <P>
                            (
                            <E T="03">v</E>
                            ) Explain how a security holder can revoke consent;
                        </P>
                        <P>
                            (
                            <E T="03">vi</E>
                            ) State that the registrant will begin sending individual copies to a security holder within thirty days after the security holder revokes consent; and
                        </P>
                        <P>
                            (
                            <E T="03">vii</E>
                            ) Contain the following prominent statement, or similar clear and understandable statement, in bold-face type: “Important Notice Regarding Delivery of Security Holder Documents.” This statement also must appear on the envelope in which the notice is delivered. Alternatively, if the notice is delivered separately from other communications to security holders, this statement may appear either on the notice or on the envelope in which the notice is delivered.
                        </P>
                        <P>
                            Note to paragraph (e)(1)(ii)(B)(
                            <E T="03">2</E>
                            ): The notice should be written in plain English. See § 230.421(d)(2) of this chapter for a discussion of plain English principles.
                        </P>
                        <P>
                            (
                            <E T="03">3</E>
                            ) The registrant has not received the reply form or other notification indicating that the security holder wishes to continue to receive an individual copy of the annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, within 60 days after the registrant sent the notice required by paragraph (e)(1)(ii)(B)(
                            <E T="03">2</E>
                            ) of this section; and
                        </P>
                        <P>
                            (
                            <E T="03">4</E>
                            ) The registrant delivers the document to a post office box or residential street address.
                        </P>
                        <P>
                            Note to paragraph (e)(1)(ii)(B)(
                            <E T="03">4</E>
                            ): The registrant can assume that a street address is residential unless the registrant has information that indicates the street address is a business. If the registrant has reason to believe that the address is a street address of a multi-unit building, the address must include the unit number.
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Revocation of consent.</E>
                             If a security holder, orally or in writing, revokes consent to delivery of one annual report to security holders, proxy statement, or statement of availability of proxy materials to a shared address, the registrant must begin sending individual copies to that security holder within 30 days after the registrant receives revocation of the security holder's consent.
                        </P>
                        <P>Note to paragraph (e)(1): A person other than the registrant making a proxy solicitation may deliver a single proxy statement to security holders of record or beneficial owners who have separate accounts and share an address if: (a) the registrant or intermediary has followed the procedures in this section; and (b) the registrant or intermediary makes available the shared address information to the person in accordance with § 240.14a-7(a)(2)(i) and (ii).</P>
                        <P>(2) Notwithstanding paragraphs (a) and (b) of this section, unless state law requires otherwise, a registrant is not required to send an annual report to security holders or proxy statement to a security holder if:</P>
                        <P>(i) An annual report to security holders and a proxy statement for two consecutive annual meetings; or</P>
                        <P>(ii) All, and at least two, payments (if sent by first class mail) of dividends or interest on securities, or dividend reinvestment confirmations, during a twelve month period, have been mailed to such security holder's mailing address and have been returned as undeliverable. If any such security holder delivers or causes to be delivered to the registrant written notice setting forth his then current mailing address for security holder communications purposes, the registrant's obligation to deliver an annual report to security holders or a proxy statement under this section is reinstated.</P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>5. Amend § 240.14a-5 by revising paragraph (d)(2) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14a-5 </SECTNO>
                        <SUBJECT>Presentation of information in proxy statement.</SUBJECT>
                        <STARS/>
                        <P>(d) * * *</P>
                        <P>(2) Where a proxy statement is delivered through an electronic medium, issuers may satisfy legibility requirements applicable to printed documents, such as type size and font, by presenting all required information in a widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format.</P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>6. Amend § 240.14a-7 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraph (a);</AMDPAR>
                    <AMDPAR>b. Revising paragraph (b)(2);</AMDPAR>
                    <AMDPAR>c. Adding a note to paragraph (b)(2);</AMDPAR>
                    <AMDPAR>d. Removing Note 1 to § 240.14a-7; and</AMDPAR>
                    <AMDPAR>e. Redesignating Note 2 to § 240.14a-7.</AMDPAR>
                    <P>The revisions, addition, and redesignation read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 240.14a-7 </SECTNO>
                        <SUBJECT>Obligations of registrants to provide a list of, or send soliciting material to, security holders.</SUBJECT>
                        <P>
                            (a) If the registrant has made or intends to make a proxy solicitation in connection with a security holder meeting or action by consent or authorization, upon the written request by any record or beneficial holder of securities of the class entitled to vote at the meeting or to execute a consent or authorization to provide a list of security holders or to send the 
                            <PRTPAGE P="45976"/>
                            requesting security holder's materials, regardless of whether the request references this section, the registrant shall:
                        </P>
                        <P>(1) Deliver to the requesting security holder within five business days after receipt of the request:</P>
                        <P>(i) Notification as to whether the registrant has elected to send the security holder's soliciting materials or provide a security holder list if the election under paragraph (b) of this section is to be made by the registrant;</P>
                        <P>(ii) A statement of the approximate number of record holders and beneficial holders, separated by type of holder and class, owning securities in the same class or classes as holders which have been or are to be solicited on management's behalf, or any more limited group of such holders designated by the security holder if available or retrievable under the registrant's or its transfer agent's security holder data systems; and</P>
                        <P>(iii) The estimated cost of sending a proxy statement, form of proxy, or other communication to such holders, including to the extent known or reasonably available, the estimated costs of any bank, broker, and similar person through whom the registrant has solicited or intends to solicit beneficial owners in connection with the security holder meeting or action;</P>
                        <P>(2) Perform the acts set forth in either paragraphs (a)(2)(i) or (a)(2)(ii) of this section, at the registrant's or requesting security holder's option, as specified in paragraph (b) of this section:</P>
                        <P>(i) Send copies of any proxy statement, form of proxy, or other soliciting material, including a statement of availability of proxy materials (as described in § 240.14a-16), furnished by the security holder to the record holders, including banks, brokers, and similar entities, designated by the security holder. A sufficient number of copies must be sent to the banks, brokers, and similar entities for distribution to all beneficial owners designated by the security holder. The security holder may designate only record holders and/or beneficial owners who would not receive the proxy materials in paper format or have not requested paper copies of the proxy statement. If the registrant has received affirmative written or implied consent to deliver a single proxy statement to security holders at a shared address in accordance with the procedures in § 240.14a-3(e)(1), a single copy of the proxy statement or statement of availability of proxy materials furnished by the security holder shall be sent to that address. The registrant shall send the security holder material with reasonable promptness after tender of the material to be sent, envelopes or other containers therefore, postage or payment for postage and other reasonable expenses of effecting such distribution. The registrant shall not be responsible for the content of the material; or</P>
                        <P>(ii) Deliver the following information to the requesting security holder within five business days of receipt of the request:</P>
                        <P>(A) A reasonably current list of the names, all addresses, and security positions of the record holders, including banks, brokers, and similar entities holding securities in the same class or classes as holders which have been or are to be solicited on management's behalf, or any more limited group of such holders designated by the security holder if available or retrievable under the registrant's or its transfer agent's security holder data systems;</P>
                        <P>(B) The most recent list of names, all addresses, and security positions of beneficial owners as specified in § 240.14a-13(b), in the possession, or which subsequently comes into the possession, of the registrant;</P>
                        <P>(C) The names of security holders at a shared address that have consented to delivery of a single copy of proxy materials to a shared address, if the registrant has received written or implied consent in accordance with § 240.14a-3(e)(1); and</P>
                        <P>(D) The names of security holders who, as of the date that the registrant receives the request, receive the proxy materials in paper format or have requested paper copies of the proxy materials for the meeting to which the solicitation relates.</P>
                        <P>(iii) All security holder list information shall be in the form requested by the security holder to the extent that such form is available to the registrant without undue burden or expense. The registrant shall furnish the security holder with updated record holder information on a daily basis or, if not available on a daily basis, at the shortest reasonable intervals; provided, however, the registrant need not provide beneficial or record holder information more current than the record date for the meeting or action.</P>
                        <P>(b) * * *</P>
                        <P>(2) With respect to all other requests pursuant to this section, the registrant shall have the option to either send the security holder's material or furnish the security holder list as set forth in this section.</P>
                        <P>Note to paragraph (b)(2): If the registrant cannot provide all of the security holder list information specified in paragraph (a)(2)(ii) of this section, the registrant must send the security holder's material to record holders in accordance with paragraph (a)(2)(i) of this section.</P>
                        <STARS/>
                        <P>(e) The security holder shall reimburse the reasonable expenses incurred by the registrant in performing the acts requested pursuant to paragraph (a) of this section.</P>
                        <P>Note to § 240.14a-7: When providing the information required by § 240.14a-7(a)(1)(ii), if the registrant has received affirmative written or implied consent to delivery of a single copy of proxy materials to a shared address in accordance with § 240.14a-3(e)(1), it shall exclude from the number of record holders those to whom it does not have to deliver a separate proxy statement.</P>
                    </SECTION>
                    <AMDPAR>7. Amend § 240.14a-13 by revising paragraphs (a)(1), (b), (b)(1), and (b)(3) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14a-13 </SECTNO>
                        <SUBJECT>Obligation of registrants in communicating with beneficial owners.</SUBJECT>
                        <P>(a) * * *</P>
                        <P>(1) Promptly:</P>
                        <STARS/>
                        <P>(b) Any registrant requesting pursuant to § 240.14b-1(b)(3) or § 240.14b-2(b)(4)(ii) and (iii) a list of names, all addresses, and securities positions of beneficial owners of its securities who either have consented or have not objected to disclosure of such information shall:</P>
                        <P>(1) Promptly inquire of each record holder and each respondent bank identified to the registrant pursuant to § 240.14b-2(b)(4)(i) whether such record holder or respondent bank holds the registrant's securities on behalf of any respondent banks and, if so, the name and address of each such respondent bank;</P>
                        <P>(2) * * *</P>
                        <P>
                            (3) Make such request to the following persons that hold the registrant's securities on behalf of beneficial owners: all brokers, dealers, banks, associations, and other entities that exercise fiduciary powers; 
                            <E T="03">Provided however,</E>
                             such request shall not cover beneficial owners of “exempt employee benefit plan securities,” as that term is defined in § 240.14a-1; and, at the option of the registrant, such request may give notice of any employee benefit plan established by an affiliate of the registrant that holds securities of the registrant that the registrant elects to treat as exempt employee benefit plan securities;
                        </P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>8. Amend § 240.14a-16 by revising it to read as follows:</AMDPAR>
                    <SECTION>
                        <PRTPAGE P="45977"/>
                        <SECTNO>§ 240.14a-16 </SECTNO>
                        <SUBJECT>Delivery and website availability of proxy materials.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Delivery Methods.</E>
                        </P>
                        <P>(1) A registrant must use the following delivery methods when furnishing to a security holder a proxy statement pursuant to § 240.14a-3(a), or an annual report to security holders pursuant to § 240.14a-3(b):</P>
                        <P>
                            (i) 
                            <E T="03">Statement of availability.</E>
                             Delivery to the security holder of a statement of availability, provided that the applicable electronic delivery requirements and the website availability requirements are satisfied;
                        </P>
                        <P>
                            (ii) 
                            <E T="03">Direct electronic delivery.</E>
                             Direct electronic delivery to the security holder, provided that the applicable electronic delivery requirements, the website availability requirements, and the requirement of paragraph (c)(1)(iii) of this section (date for paper copy request) are satisfied; or
                        </P>
                        <P>
                            (iii) 
                            <E T="03">Paper format.</E>
                             Delivery to the security holder in paper format.
                        </P>
                        <P>(2) A registrant must satisfy all applicable requirements of this section when using any of the delivery methods listed in paragraph (a) of this section.</P>
                        <P>
                            (b) 
                            <E T="03">Website Availability of Proxy Materials.</E>
                        </P>
                        <P>(1) The proxy statement or annual report required to be furnished to security holders in accordance with this section must:</P>
                        <P>(i) Be available on a website (which may not be the address of any Commission electronic filing system) that meets the website availability requirements no later than the date on which the proxy statement or annual report, as applicable, is sent to security holders and, if applicable, no later than the date on which the statement of availability is delivered to security holders; and</P>
                        <P>(ii) Remain available on the website at least through the conclusion of the meeting of security holders.</P>
                        <P>(2) All additional soliciting materials sent to security holders or made public after the proxy statement has been sent must:</P>
                        <P>(i) Be available on the website described in paragraph (b)(1)(i) of this section no later than the date on which such materials are first sent to security holders or made public; and</P>
                        <P>(ii) Remain available on the website at least through the conclusion of the meeting of security holders.</P>
                        <P>
                            (c) 
                            <E T="03">Statement of Availability of Proxy Materials.</E>
                        </P>
                        <P>A registrant must comply with the following requirements when furnishing its proxy statement or annual report to security holders through the delivery of a statement of availability pursuant to paragraph (a)(1)(i) of this section.</P>
                        <P>(1) The statement of availability of proxy materials must include:</P>
                        <P>(i) A prominent legend that states “Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting To Be Held [insert meeting date, time, and location]”;</P>
                        <P>(ii) Any control/identification numbers that the security holder needs to access its form of proxy and instructions on how to access the form of proxy;</P>
                        <P>(iii) The date by which a security holder should make a request to obtain a paper copy of the proxy materials to facilitate timely delivery before the shareholder meeting; and</P>
                        <P>(iv) The information required by § 303.102(c)(1) of Regulation E-Delivery (§§ 303.100 through 104).</P>
                        <P>(2) If the registrant or soliciting person is conducting a consent solicitation rather than a proxy solicitation or furnishing an information statement pursuant to § 240.14c-2, the statement of availability must be revised accordingly, including disclosure of the earliest date on which a corporate action may be taken if such action is to be taken pursuant to written consent.</P>
                        <P>(3) A statement of availability of proxy materials must be delivered separately from other communications, except:</P>
                        <P>(i) It may be combined with, or accompanied by, a notice of security holder meeting required under State law, unless prohibited by State law; and</P>
                        <P>
                            (ii) In the case of an investment company registered under the Investment Company Act of 1940, the statement of availability of proxy materials may accompany the company's prospectus, a summary prospectus that satisfies the requirements of § 230.498(b) or § 230.498A(b) or (c) of this chapter, or a report that is required to be transmitted to stockholders by section 30(e) of the Investment Company Act (15 U.S.C. 80a-29(e)) and its implementing regulations (
                            <E T="03">e.g.,</E>
                             §§ 270.30e-1 and 270.30e-2 of this chapter).
                        </P>
                        <P>(4) A form of the statement of availability of proxy materials must be filed with the Commission pursuant to § 240.14a-6(b) no later than the date that the statement of availability is first sent to security holders.</P>
                        <P>
                            (d) 
                            <E T="03">Form of Proxy.</E>
                        </P>
                        <P>The registrant must provide security holders with a means to execute a proxy as of the time a statement of availability, if any, is first sent to security holders.</P>
                        <P>
                            (e) 
                            <E T="03">Obligation to Provide Information and Copies to Record Holders and Respondent Banks.</E>
                        </P>
                        <P>(1) If the registrant furnishes its proxy statement, information statement, or annual report to security holders through either delivery of a statement of availability pursuant to paragraph (a)(1)(i) of this section or direct electronic delivery pursuant to paragraph (a)(1)(ii) of this section, it must provide the record holder or respondent bank with all information required for the statement of availability or direct electronic delivery, as applicable, in sufficient time for the record holder or respondent bank to prepare and deliver such materials to beneficial owners in accordance with the electronic delivery requirements.</P>
                        <P>(2) If the registrant furnishes its proxy statement, information statement, or annual report to security holders through either delivery of a statement of availability pursuant to paragraph (a)(1)(i) of this section or direct electronic delivery pursuant to paragraph (a)(1)(ii) of this section, the registrant must send the requested paper copies of such documents by U.S. first class mail or through other reasonably prompt means to any requesting record holder or respondent bank within three business days after receiving the request and at no cost to the record holder or respondent bank.</P>
                        <P>
                            (f) 
                            <E T="03">Soliciting Person Other than Registrant.</E>
                        </P>
                        <P>A soliciting person other than the registrant must furnish a proxy statement pursuant to § 240.14a-3(a) to a security holder in accordance with this section and must comply with the requirements imposed on registrants by this section.</P>
                        <P>
                            (g) 
                            <E T="03">Security Holder Information.</E>
                        </P>
                        <P>(1) A registrant or its agent shall maintain the website where the proxy materials are made available in accordance with paragraph (c) of this section in a manner that does not infringe on the anonymity of a person accessing such website.</P>
                        <P>(2) The registrant and its agents shall not use any electronic address obtained from a security holder solely to request a copy of proxy materials, pursuant to paragraph (e) of this section, or opt out of electronic delivery for any purpose other than to send a copy of those materials to that security holder. The registrant shall not disclose such information to any person other than an employee or agent to the extent necessary to send a copy of the proxy materials pursuant to paragraph (e) of this section or to implement the opt out of electronic delivery.</P>
                    </SECTION>
                    <AMDPAR>9. Amend § 240.14a-101 by:</AMDPAR>
                    <AMDPAR>a. Revising the header and checkboxes section at the beginning of this section;</AMDPAR>
                    <AMDPAR>
                        b. Adding paragraph (d) of Item 1;
                        <PRTPAGE P="45978"/>
                    </AMDPAR>
                    <AMDPAR>c. Revising paragraphs (b)(1)(i), (b)(1)(ii), and (b)(1)(ix) of Item 5;</AMDPAR>
                    <AMDPAR>d. Revising paragraphs (a)(3)(i), (b)(1), and (c) through (c)(4) of Item 22; and</AMDPAR>
                    <AMDPAR>e. Revising Item 23.</AMDPAR>
                    <P>The revisions and additions read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 240.14a-101</SECTNO>
                        <SUBJECT>Schedule 14A. Information required in proxy statement.</SUBJECT>
                        <HD SOURCE="HD1">Schedule 14A Information</HD>
                        <HD SOURCE="HD1">Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934</HD>
                        <HD SOURCE="HD1">(Amendment No.)</HD>
                        <FP SOURCE="FP-2">Filed by the Registrant [ ]</FP>
                        <FP SOURCE="FP-2">Filed by a party other than the Registrant [ ]</FP>
                        <FP SOURCE="FP-2">Check the appropriate box:</FP>
                        <FP SOURCE="FP1-2">[ ] Preliminary Proxy Statement</FP>
                        <FP SOURCE="FP1-2">[ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FP>
                        <FP SOURCE="FP1-2">[ ] Definitive Proxy Statement</FP>
                        <FP SOURCE="FP1-2">[ ] Definitive Additional Materials</FP>
                        <FP SOURCE="FP1-2">[ ] Soliciting Material under § 240.14a-12</FP>
                        <FP SOURCE="FP-2">(Name of Registrant as Specified in Its Charter)</FP>
                        <FP SOURCE="FP-2">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</FP>
                        <FP SOURCE="FP-2">Payment of Filing Fee (Check all boxes that apply):</FP>
                        <FP SOURCE="FP1-2">[ ] No fee required</FP>
                        <FP SOURCE="FP1-2">[ ] Fee paid previously with preliminary materials</FP>
                        <FP SOURCE="FP1-2">[ ] Fee computed on table in exhibit required by Item 25(c) per Exchange Act Rules 14a-6(i)(1) and 0-11</FP>
                        <STARS/>
                        <P>
                            <E T="03">Item 1. Date, time and place information.</E>
                        </P>
                        <STARS/>
                        <P>(d) State the website address where the proxy materials are available.</P>
                        <STARS/>
                        <P>
                            <E T="03">Item 5. Interest of certain Persons in Matters To Be Acted Upon</E>
                        </P>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) * * *</P>
                        <P>(i) Name and business mailing address of the participant.</P>
                        <P>(ii) The participant's present principal occupation or employment and the name, principal business, and mailing address of any corporation or other organization in which such employment is carried on.</P>
                        <P>(iii) * * *</P>
                        <P>(iv) * * *</P>
                        <P>(v) * * *</P>
                        <P>(vi) * * *</P>
                        <P>(vii) * * *</P>
                        <P>(viii) * * *</P>
                        <P>(ix) State the amount of securities of the registrant owned beneficially, directly or indirectly, by each of the participant's associates and the name and mailing address of each such associate.</P>
                        <STARS/>
                        <P>
                            <E T="03">Item 22. Information required in investment company proxy statement.</E>
                        </P>
                        <P>(a) * * *</P>
                        <P>
                            (3) 
                            <E T="03">General disclosure.</E>
                             Furnish the following information in the proxy statement of a Fund or Funds:
                        </P>
                        <P>(i) State the name and mailing address of the Fund's investment adviser, principal underwriter, and Administrator.</P>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) Provide the information required by the following table for each director, nominee for election as director, Officer of the Fund, person chosen to become an Officer of the Fund, and, if the Fund has an advisory board, member of the board. Explain in a footnote to the table any family relationship between the persons listed.</P>
                        <GPOTABLE COLS="6" OPTS="L2,nj,tp0,i1" CDEF="s50,r50,r50,r50,r100,r100">
                            <TTITLE> </TTITLE>
                            <BOXHD>
                                <CHED H="1">(1)</CHED>
                                <CHED H="1">(2)</CHED>
                                <CHED H="1">(3)</CHED>
                                <CHED H="1">(4)</CHED>
                                <CHED H="1">(5)</CHED>
                                <CHED H="1">(6)</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="01">Name, Mailing Address, and Age</ENT>
                                <ENT>Position(s) Held with Fund</ENT>
                                <ENT>Term of Office and Length of Time Served</ENT>
                                <ENT>Principal Occupation(s) During Past 5 Years</ENT>
                                <ENT>Number of Portfolios in Fund Complex Overseen by Director or Nominee for Director</ENT>
                                <ENT>Other Directorships Held by Director or Nominee for Director.</ENT>
                            </ROW>
                        </GPOTABLE>
                        <P>Instructions to paragraph (b)(1).</P>
                        <P>1. For purposes of this paragraph, the term “family relationship” means any relationship by blood, marriage, or adoption, not more remote than first cousin.</P>
                        <P>2. No nominee or person chosen to become a director or Officer who has not consented to act as such may be named in response to this Item. In this regard, see Rule 14a-4(d) under the Exchange Act (§ 240.14a-4(d)).</P>
                        <P>3. If fewer nominees are named than the number fixed by or pursuant to the governing instruments, state the reasons for this procedure and that the proxies cannot be voted for a greater number of persons than the number of nominees named.</P>
                        <P>4. For each director or nominee for election as director who is or would be an “interested person” of the Fund within the meaning of section 2(a)(19) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(19)), describe, in a footnote or otherwise, the relationship, events, or transactions by reason of which the director or nominee is or would be an interested person.</P>
                        <P>5. State the principal business of any company listed under column (4) unless the principal business is implicit in its name.</P>
                        <P>6. Include in column (5) the total number of separate portfolios that a nominee for election as director would oversee if he were elected.</P>
                        <P>
                            7. Indicate in column (6) directorships not included in column (5) that are held by a director or nominee for election as director in any company with a class of securities registered pursuant to section 12 of the Exchange Act (15 U.S.C. 78
                            <E T="03">l</E>
                            ), or subject to the requirements of section 15(d) of the Exchange Act (15 U.S.C. 78o(d)), or any company registered as an investment company under the Investment Company Act of 1940, (15 U.S.C. 80a), as amended, and name the companies in which the directorships are held. Where the other directorships include directorships overseeing two or more portfolios in the same Fund Complex, identify the Fund Complex and provide the number of portfolios overseen as a director in the Fund Complex rather than listing each portfolio separately.
                        </P>
                        <STARS/>
                        <P>
                            (c) 
                            <E T="03">Approval of investment advisory contract.</E>
                             If action is to be taken with respect to an investment advisory contract, include the following information in the proxy statement.
                        </P>
                        <P>
                            <E T="03">Instruction.</E>
                             Furnish information with respect to a prospective investment adviser to the extent applicable (including the name and mailing address of the prospective investment adviser).
                        </P>
                        <P>(1) * * *</P>
                        <P>(2) State the name, mailing address, and principal occupation of the principal executive officer and each director or general partner of the investment adviser.</P>
                        <P>
                            <E T="03">Instruction.</E>
                             If the investment adviser is a partnership with more than ten general partners, name:
                        </P>
                        <P>(i) * * *</P>
                        <P>
                            (ii) * * *
                            <PRTPAGE P="45979"/>
                        </P>
                        <P>(3) State the names and mailing addresses of all Parents of the investment adviser and show the basis of control of the investment adviser and each Parent by its immediate Parent.</P>
                        <P>
                            <E T="03">Instructions.</E>
                        </P>
                        <P>1. If any person named is a corporation, include the percentage of its voting securities owned by its immediate Parent.</P>
                        <P>2. If any person named is a partnership, name the general partners having the three largest partnership interests (computed by whatever method is appropriate in the particular case).</P>
                        <P>(4) If the investment adviser is a corporation and if, to the knowledge of the persons making the solicitation or the persons on whose behalf the solicitation is made, any person not named in answer to paragraph (c)(3) of this Item 22 owns, of record or beneficially, ten percent or more of the outstanding voting securities of the investment adviser, indicate that fact and state the name and mailing address of each such person.</P>
                        <STARS/>
                        <P>
                            <E T="03">Item 23. Delivery of documents to security holders sharing an address.</E>
                             If one annual report to security holders, proxy statement, or statement of availability of proxy materials is being delivered to two or more security holders who share an address in accordance with § 240.14a-3(e)(1), furnish the following information:
                        </P>
                        <P>(a) State that only one annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, is being delivered to multiple security holders sharing an address unless the registrant has received contrary instructions from one or more of the security holders;</P>
                        <P>(b) Undertake to deliver promptly upon written or oral request a separate copy of the annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, to a security holder at a shared address to which a single copy of the documents was delivered and provide instructions as to how a security holder can notify the registrant that the security holder wishes to receive a separate copy of an annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable;</P>
                        <P>(c) Provide the phone number and address to which a security holder can direct a notification to the registrant that the security holder wishes to receive a separate annual report to security holders, proxy statement, or statement of availability of proxy materials, as applicable, in the future; and</P>
                        <P>(d) Provide instructions how security holders sharing an address can request delivery of a single copy of annual reports to security holders, proxy statements, or statements of availability of proxy materials if they are receiving multiple copies of annual reports to security holders, proxy statements, or statements of availability of proxy materials.</P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>10. Amend § 240.14b-1 by revising it to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14b-1 </SECTNO>
                        <SUBJECT>Obligation of registered brokers and dealers in connection with the prompt forwarding of certain communications to beneficial owners.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Definitions.</E>
                             Unless the context otherwise requires, all terms used in this section shall have the same meanings as in the Act and, with respect to proxy soliciting material, as in § 240.14a-1 thereunder and, with respect to information statements, as in § 240.14c-1 thereunder. In addition, as used in this section, the term “registrant” means:
                        </P>
                        <P>(1) The issuer of a class of securities registered pursuant to section 12 of the Act; or</P>
                        <P>(2) An investment company registered under the Investment Company Act of 1940.</P>
                        <P>
                            (b) 
                            <E T="03">Dissemination and beneficial owner information requirements.</E>
                             A broker or dealer registered under section 15 of the Act shall comply with the following requirements for disseminating certain communications to beneficial owners and providing beneficial owner information to registrants.
                        </P>
                        <P>(1) The broker or dealer shall respond promptly to the registrant no later than seven business days after the date it receives an inquiry made in accordance with § 240.14a-13(a) or § 240.14c-7(a) by indicating, by means of a search card or otherwise:</P>
                        <P>(i) The approximate number of customers of the broker or dealer who are beneficial owners of the registrant's securities that are held of record by the broker, dealer, or its nominee;</P>
                        <P>(ii) The number of customers of the broker or dealer who are beneficial owners of the registrant's securities who have objected to disclosure of their names, addresses, and securities positions if the registrant has indicated, pursuant to § 240.14a-13(a)(1)(ii)(A) or § 240.14c-7(a)(1)(ii)(A), that it will distribute the annual report to security holders to beneficial owners of its securities whose names, addresses, and securities positions are disclosed pursuant to paragraph (b)(3) of this section; and</P>
                        <P>
                            (iii) The identity of the designated agent of the broker or dealer, if any, acting on its behalf in fulfilling its obligations under paragraph (b)(3) of this section; 
                            <E T="03">Provided, however,</E>
                             that if the broker or dealer has informed the registrant that a designated office(s) or department(s) is to receive such inquiries, receipt for purposes of paragraph (b)(1) of this section shall mean receipt by such designated office(s) or department(s).
                        </P>
                        <P>(2) Following receipt of the proxy, other proxy soliciting material, information statement, and/or annual report to security holders from the registrant or other soliciting person, the broker or dealer shall:</P>
                        <P>(i) forward such materials to its customers who are beneficial owners of the registrant's securities no later than five business days after receipt of the proxy material, information statement, or annual report to security holders:</P>
                        <P>(A) by direct electronic delivery to the beneficial owners, provided that the applicable electronic delivery requirements and the website availability requirements are satisfied; or</P>
                        <P>(B) in paper format; and</P>
                        <P>(ii) include in the broker's or dealer's request for voting instructions to be sent with the proxy statement and annual report, a brief description, if applicable, of the rules that permit the broker or dealer to vote the securities if the beneficial owner does not return his or her voting instructions.</P>
                        <P>Note to paragraph (b)(2): At the request of a registrant, or on its own initiative so long as the registrant does not object, a broker or dealer may, but is not required to, deliver one annual report to security holders, proxy statement, information statement, or statement of availability of proxy materials to more than one beneficial owner sharing an address if the requirements set forth in § 240.14a-3(e)(1) (with respect to annual reports to security holders, proxy statements, and statements of availability of proxy materials) and § 240.14c-3(c) (with respect to annual reports to security holders, information statements, and statements of availability of proxy materials) applicable to registrants, with the exception of § 240.14a-3(e)(1)(i)(F), are satisfied instead by the broker or dealer.</P>
                        <P>(3) The broker or dealer shall, through its agent or directly:</P>
                        <P>
                            (i) Provide the registrant, upon the registrant's request, with the names, all addresses, and securities positions, compiled as of a date specified in the registrant's request which is no earlier than five business days after the date the 
                            <PRTPAGE P="45980"/>
                            registrant's request is received, of its customers who are beneficial owners of the registrant's securities and who have not objected to disclosure of such information; 
                            <E T="03">Provided, however,</E>
                             that if the broker or dealer has informed the registrant that a designated office(s) or department(s) is to receive such requests, receipt shall mean receipt by such designated office(s) or department(s); and
                        </P>
                        <P>(ii) Transmit the data specified in paragraph (b)(3)(i) of this section to the registrant no later than five business days after the record date or other date specified by the registrant.</P>
                        <P>Note 1: Where a broker or dealer employs a designated agent to act on its behalf in performing the obligations imposed on the broker or dealer by paragraph (b)(3) of this section, the five business day time period for determining the date as of which the beneficial owner information is to be compiled is calculated from the date the designated agent receives the registrant's request. In complying with the registrant's request for beneficial owner information under paragraph (b)(3) of this section, a broker or dealer need only supply the registrant with the names, addresses, and securities positions of non-objecting beneficial owners.</P>
                        <P>Note 2: If a broker or dealer receives a registrant's request less than five business days before the requested compilation date, it must provide a list compiled as of a date that is no more than five business days after receipt and transmit the list within five business days after the compilation date.</P>
                        <P>
                            (c) 
                            <E T="03">Exceptions to dissemination and beneficial owner information requirements.</E>
                             A broker or dealer registered under section 15 of the Act shall be subject to the following with respect to its dissemination and beneficial owner information requirements.
                        </P>
                        <P>(1) With regard to beneficial owners of exempt employee benefit plan securities, the broker or dealer shall:</P>
                        <P>(i) Not include information in its response pursuant to paragraph (b)(1) of this section or forward proxies (or in lieu thereof requests for voting instructions), proxy soliciting material, information statements, or annual reports to security holders pursuant to paragraph (b)(2) of this section to such beneficial owners; and</P>
                        <P>(ii) Not include in its response, pursuant to paragraph (b)(3) of this section, data concerning such beneficial owners.</P>
                        <P>(2) A broker or dealer need not satisfy:</P>
                        <P>(i) Its obligations under paragraphs (b)(2), (b)(3), and (d) of this section if the registrant or other soliciting person, as applicable, does not provide assurance of reimbursement of the broker's or dealer's reasonable expenses, both direct and indirect, incurred in connection with performing the obligations imposed by paragraphs (b)(2), (b)(3), and (d) of this section; or</P>
                        <P>(ii) Its obligation under paragraph (b)(2) of this section to forward annual reports to security holders to non-objecting beneficial owners identified by the broker or dealer, through its agent or directly, pursuant to paragraph (b)(3) of this section if the registrant notifies the broker or dealer pursuant to § 240.14a-13(c) or § 240.14c-7(c) that the registrant will send the annual report to security holders to such non-objecting beneficial owners identified by the broker or dealer and delivered in a list to the registrant pursuant to paragraph (b)(3) of this section.</P>
                        <P>(3) In its response pursuant to paragraph (b)(1) of this section, a broker or dealer shall not include information about annual reports to security holders, proxy statements, or information statements that will not be delivered to security holders sharing an address because of the broker or dealer's reliance on the procedures referred to in the Note to paragraph (b)(2) of this section.</P>
                        <P>(d) Following receipt from the soliciting person of all of the information listed in § 240.14a-16(c), the broker or dealer shall:</P>
                        <P>(1) Prepare and send a statement of availability of proxy materials, provided that the applicable electronic delivery requirements and the website availability requirements are satisfied, and containing the information required in paragraph (e) of this section to beneficial owners no later than five business days after the date it receives such information from the soliciting person or such later date specified by the soliciting person; and</P>
                        <P>(2) Establish a website at which beneficial owners are able to access the broker or dealer's request for voting instructions and, at the broker or dealer's option, establish a website at which beneficial owners are able to access the proxy statement and other soliciting materials, provided that such websites are maintained in a manner consistent with paragraph (b) of § 240.14a-16; and</P>
                        <P>
                            <E T="03">Note to paragraphs (d)(1) and (d)(2):</E>
                             If the broker or dealer will not establish a separate website where beneficial owners are able to access the proxy statement and other soliciting materials and the statement of availability of proxy materials refers to the website address provided by the registrant where beneficial owners are able to access the proxy statement and other soliciting materials, the website availability requirements will be deemed to be met as they relate to the broker or dealer's obligations under that provision.
                        </P>
                        <P>(3) Upon receipt of a request for a copy of the materials from a beneficial owner:</P>
                        <P>(i) Request a copy of the soliciting materials from the registrant or other soliciting person, in the form requested by the beneficial owner, within three business days after receiving the beneficial owner's request;</P>
                        <P>(ii) Forward a copy of the soliciting materials to the beneficial owner, in the form requested by the beneficial owner, within three business days after receiving the materials from the registrant or other soliciting person; and</P>
                        <P>
                            (e) 
                            <E T="03">Content of Statement of Availability of Proxy Materials.</E>
                             The broker's or dealer's statement of availability of proxy materials shall:
                        </P>
                        <P>(1) Include all information, as it relates to beneficial owners, required by § 240.14a-16(c);</P>
                        <P>(2) Include a brief description, if applicable, of the rules that permit the broker or dealer to vote the securities if the beneficial owner does not return his or her voting instructions;</P>
                        <P>(3) Include the website address established pursuant to paragraph (d)(2) of this section where beneficial owners are able to access the broker's or dealer's request for voting instructions; and</P>
                        <P>(4) Otherwise be prepared and sent in a manner consistent with paragraphs (c)(1), (c)(2), and (c)(3) of § 240.14a-16.</P>
                    </SECTION>
                    <AMDPAR>11. Amend § 240.14b-2 by revising it to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14b-2 </SECTNO>
                        <SUBJECT>Obligation of banks, associations and other entities that exercise fiduciary powers in connection with the prompt forwarding of certain communications to beneficial owners.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Definitions.</E>
                             Unless the context otherwise requires, all terms used in this section shall have the same meanings as in the Act and, with respect to proxy soliciting material, as in § 240.14a-1 thereunder and, with respect to information statements, as in § 240.14c-1 thereunder. In addition, as used in this section, the following terms shall apply:
                        </P>
                        <P>
                            (1) The term 
                            <E T="03">bank</E>
                             means a bank, association, or other entity that exercises fiduciary powers.
                        </P>
                        <P>
                            (2) The term 
                            <E T="03">beneficial owner</E>
                             includes any person who has or shares, pursuant to an instrument, agreement, or otherwise, the power to vote, or to direct the voting of a security.
                        </P>
                        <P>
                            <E T="03">Note 1:</E>
                             If more than one person shares voting power, the provisions of the 
                            <PRTPAGE P="45981"/>
                            instrument creating that voting power shall govern with respect to whether consent to disclosure of beneficial owner information has been given.
                        </P>
                        <P>
                            <E T="03">Note 2:</E>
                             If more than one person shares voting power or if the instrument creating that voting power provides that such power shall be exercised by different persons depending on the nature of the corporate action involved, all persons entitled to exercise such power shall be deemed beneficial owners; 
                            <E T="03">Provided, however,</E>
                             that only one such beneficial owner need be designated among the beneficial owners to receive proxies or requests for voting instructions, other proxy soliciting material, information statements, and/or annual reports to security holders, if the person so designated assumes the obligation to disseminate, in a timely manner, such materials to the other beneficial owners.
                        </P>
                        <P>
                            (3) The term 
                            <E T="03">registrant</E>
                             means:
                        </P>
                        <P>(i) The issuer of a class of securities registered pursuant to section 12 of the Act; or</P>
                        <P>(ii) An investment company registered under the Investment Company Act of 1940.</P>
                        <P>
                            (b) 
                            <E T="03">Dissemination and beneficial owner information requirements.</E>
                             A bank shall comply with the following requirements for disseminating certain communications to beneficial owners and providing beneficial owner information to registrants.
                        </P>
                        <P>(1) The bank shall:</P>
                        <P>(i) Respond promptly to the registrant, no later than one business day after the date it receives an inquiry made in accordance with § 240.14a-13(a) or § 240.14c-7(a) by indicating the name and address of each of its respondent banks that holds the registrant's securities on behalf of beneficial owners, if any; and</P>
                        <P>(ii) Respond promptly to the registrant no later than seven business days after the date it receives an inquiry made in accordance with § 240.14a-13(a) or § 240.14c-7(a) by indicating, by means of a search card or otherwise:</P>
                        <P>(A) The approximate number of customers of the bank who are beneficial owners of the registrant's securities that are held of record by the bank or its nominee;</P>
                        <P>(B) If the registrant has indicated, pursuant to § 240.14a-13(a)(1)(ii)(A) or § 240.14c-7(a)(1)(ii)(A), that it will distribute the annual report to security holders to beneficial owners of its securities whose names, addresses, and securities positions are disclosed pursuant to paragraphs (b)(4)(ii) and (iii) of this section:</P>
                        <P>
                            (
                            <E T="03">1</E>
                            ) With respect to customer accounts opened on or before December 28, 1986, the number of beneficial owners of the registrant's securities who have affirmatively consented to disclosure of their names, addresses, and securities positions; and
                        </P>
                        <P>
                            (
                            <E T="03">2</E>
                            ) With respect to customer accounts opened after December 28, 1986, the number of beneficial owners of the registrant's securities who have not objected to disclosure of their names, addresses, and securities positions; and
                        </P>
                        <P>(C) The identity of its designated agent, if any, acting on its behalf in fulfilling its obligations under paragraphs (b)(4)(ii) and (iii) of this section;</P>
                        <P>
                            <E T="03">Provided, however,</E>
                             that, if the bank or respondent bank has informed the registrant that a designated office(s) or department(s) is to receive such inquiries, receipt for purposes of paragraphs (b)(1)(i) and (ii) of this section shall mean receipt by such designated office(s) or department(s).
                        </P>
                        <P>(2) Where proxies are solicited, the bank shall, within five business days after the record date:</P>
                        <P>(i) Execute an omnibus proxy, including a power of substitution, in favor of its respondent banks and forward such proxy to the registrant; and</P>
                        <P>(ii) Furnish a notice to each respondent bank in whose favor an omnibus proxy has been executed that it has executed such a proxy, including a power of substitution, in its favor pursuant to paragraph (b)(2)(i) of this section.</P>
                        <P>(3) Following receipt of the proxy, other proxy soliciting material, information statement, and/or annual report to security holders from the registrant or other soliciting person, the bank shall:</P>
                        <P>(i) forward such materials to each beneficial owner on whose behalf it holds securities, no later than five business days after the date it receives such material:</P>
                        <P>(A) by direct electronic delivery to the beneficial owners, provided that the applicable electronic delivery requirements and the website availability requirements are satisfied; or</P>
                        <P>(B) in paper format; and</P>
                        <P>(ii) where a proxy is solicited, forward, with the other proxy soliciting material and/or the annual report to security holders, either:</P>
                        <P>(A) A properly executed proxy:</P>
                        <P>
                            (
                            <E T="03">1</E>
                            ) Indicating the number of securities held for such beneficial owner;
                        </P>
                        <P>
                            (
                            <E T="03">2</E>
                            ) Bearing the beneficial owner's account number or other form of identification, together with instructions as to the procedures to vote the securities;
                        </P>
                        <P>
                            (
                            <E T="03">3</E>
                            ) Briefly stating which other proxies, if any, are required to permit securities to be voted under the terms of the instrument creating that voting power or applicable state law; and
                        </P>
                        <P>
                            (
                            <E T="03">4</E>
                            ) If the proxy is in paper format, being accompanied by an envelope addressed to the registrant or its agent, if not provided by the registrant; or
                        </P>
                        <P>(B) A request for voting instructions (for which registrant's form of proxy may be used and which shall be voted by the record holder bank or respondent bank in accordance with the instructions received), and if the voting instructions are in paper format, an envelope addressed to the record holder bank or respondent bank.</P>
                        <P>
                            <E T="03">Note to paragraph (b)(3):</E>
                             At the request of a registrant, or on its own initiative so long as the registrant does not object, a bank may, but is not required to, deliver one annual report to security holders, proxy statement, information statement, or statement of availability of proxy materials to more than one beneficial owner sharing an address if the requirements set forth in § 240.14a-3(e)(1) (with respect to annual reports to security holders, proxy statements, and statements of availability of proxy materials) and § 240.14c-3(c) (with respect to annual reports to security holders, information statements, and statements of availability of proxy materials) applicable to registrants, with the exception of § 240.14a-3(e)(1)(i)(F), are satisfied instead by the bank.
                        </P>
                        <P>(4) The bank shall:</P>
                        <P>(i) Respond promptly to the registrant no later than one business day after the date it receives an inquiry made in accordance with § 240.14a-13(b)(1) or § 240.14c-7(b)(1) by indicating the name and address of each of its respondent banks that holds the registrant's securities on behalf of beneficial owners, if any;</P>
                        <P>(ii) Through its agent or directly, provide the registrant, upon the registrant's request, and within the time specified in paragraph (b)(4)(iii) of this section, with the names, all addresses, and securities position, compiled as of a date specified in the registrant's request which is no earlier than five business days after the date the registrant's request is received, of:</P>
                        <P>(A) With respect to customer accounts opened on or before December 28, 1986, beneficial owners of the registrant's securities on whose behalf it holds securities who have consented affirmatively to disclosure of such information, subject to paragraph (b)(5) of this section; and</P>
                        <P>
                            (B) With respect to customer accounts opened after December 28, 1986, 
                            <PRTPAGE P="45982"/>
                            beneficial owners of the registrant's securities on whose behalf it holds securities who have not objected to disclosure of such information;
                        </P>
                        <P>
                            <E T="03">Provided, however,</E>
                             that if the record holder bank or respondent bank has informed the registrant that a designated office(s) or department(s) is to receive such requests, receipt for purposes of paragraphs (b)(4)(i) and (ii) of this section shall mean receipt by such designated office(s) or department(s); and
                        </P>
                        <P>(iii) Through its agent or directly, transmit the data specified in paragraph (b)(4)(ii) of this section to the registrant no later than five business days after the date specified by the registrant.</P>
                        <P>
                            <E T="03">Note 1:</E>
                             Where a record holder bank or respondent bank employs a designated agent to act on its behalf in performing the obligations imposed on it by paragraphs (b)(4)(ii) and (iii) of this section, the five business day time period for determining the date as of which the beneficial owner information is to be compiled is calculated from the date the designated agent receives the registrant's request. In complying with the registrant's request for beneficial owner information under paragraphs (b)(4)(ii) and (iii) of this section, a record holder bank or respondent bank need only supply the registrant with the names, addresses, and securities positions of affirmatively consenting and non-objecting beneficial owners.
                        </P>
                        <P>
                            <E T="03">Note 2:</E>
                             If a record holder bank or respondent bank receives a registrant's request less than five business days before the requested compilation date, it must provide a list compiled as of a date that is no more than five business days after receipt and transmit the list within five business days after the compilation date.
                        </P>
                        <P>(5) For customer accounts opened on or before December 28, 1986, unless the bank has made a good faith effort to obtain affirmative consent to disclosure of beneficial owner information pursuant to paragraph (b)(4)(ii) of this section, the bank shall provide such information as to beneficial owners who do not object to disclosure of such information. A good faith effort to obtain affirmative consent to disclosure of beneficial owner information shall include, but shall not be limited to, making an inquiry:</P>
                        <P>(i) Phrased in neutral language, explaining the purpose of the disclosure and the limitations on the registrant's use thereof;</P>
                        <P>(ii) Either in at least one mailing separate from other account mailings or in repeated mailings; and</P>
                        <P>(iii) In a mailing that includes a return card, postage paid enclosure.</P>
                        <P>
                            (c) 
                            <E T="03">Exceptions to dissemination and beneficial owner information requirements.</E>
                             The bank shall be subject to the following with respect to its dissemination and beneficial owner information requirements.
                        </P>
                        <P>(1) With regard to beneficial owners of exempt employee benefit plan securities, the bank shall not:</P>
                        <P>(i) Include information in its response pursuant to paragraph (b)(1) of this section; or forward proxies (or in lieu thereof requests for voting instructions), proxy soliciting material, information statements, or annual reports to security holders pursuant to paragraph (b)(3) of this section to such beneficial owners; or</P>
                        <P>(ii) Include in its response pursuant to paragraphs (b)(4) and (b)(5) of this section data concerning such beneficial owners.</P>
                        <P>(2) The bank need not satisfy:</P>
                        <P>(i) Its obligations under paragraphs (b)(2), (b)(3), (b)(4), and (d) of this section if the registrant or other soliciting person, as applicable, does not provide assurance of reimbursement of its reasonable expenses, both direct and indirect, incurred in connection with performing the obligations imposed by paragraphs (b)(2), (b)(3), (b)(4), and (d) of this section; or</P>
                        <P>(ii) Its obligation under paragraph (b)(3) of this section to forward annual reports to security holders to consenting and non-objecting beneficial owners identified pursuant to paragraphs (b)(4)(ii) and (iii) of this section if the registrant notifies the record holder bank or respondent bank, pursuant to § 240.14a-13(c) or § 240.14c-7(c), that the registrant will send the annual report to security holders to beneficial owners whose names, addresses, and securities positions are disclosed pursuant to paragraphs (b)(4)(ii) and (iii) of this section.</P>
                        <P>(3) For the purposes of determining the fees which may be charged to registrants pursuant to § 240.14a-13(b)(5), § 240.14c-7(a)(5), and paragraph (c)(2) of this section for performing obligations under paragraphs (b)(2), (b)(3), and (b)(4) of this section, an amount no greater than that permitted to be charged by brokers or dealers for reimbursement of their reasonable expenses, both direct and indirect, incurred in connection with performing the obligations imposed by paragraphs (b)(2) and (b)(3) of § 240.14b-1, shall be deemed to be reasonable.</P>
                        <P>(4) In its response pursuant to paragraph (b)(1)(ii)(A) of this section, a bank shall not include information about annual reports to security holders, proxy statements, or information statements that will not be delivered to security holders sharing an address because of the bank's reliance on the procedures referred to in the Note to paragraph (b)(3) of this section.</P>
                        <P>(d) Following receipt from the soliciting person of all of the information listed in § 240.14a-16(c), the bank shall:</P>
                        <P>(1) Prepare and send a statement of availability of proxy materials, provided that the applicable electronic delivery requirements and the website availability requirements are satisfied, and containing the information required in paragraph (e) of this section to beneficial owners no later than five business days after the date it receives such information from the soliciting person or such later date specified by the soliciting person; and</P>
                        <P>(2) Establish a website at which beneficial owners are able to access the bank's request for voting instructions and, at the bank's option, establish a website at which beneficial owners are able to access the proxy statement and other soliciting materials, provided that such websites are maintained in a manner consistent with paragraph (b) of § 240.14a-16; and</P>
                        <P>
                            <E T="03">Note to paragraphs (d)(1) and (d)(2):</E>
                             If the bank will not establish a separate website where beneficial owners are able to access the proxy statement and other soliciting materials and the statement of availability of proxy materials refers to the website address provided by the registrant where beneficial owners are able to access the proxy statement and other soliciting materials, the website availability requirements will be deemed to be met as they relate to the bank's obligations under that provision.
                        </P>
                        <P>(3) Upon receipt of a request for a copy of the materials from a beneficial owner:</P>
                        <P>(i) Request a copy of the soliciting materials from the registrant or other soliciting person, in the form requested by the beneficial owner, within three business days after receiving the beneficial owner's request;</P>
                        <P>(ii) Forward a copy of the soliciting materials to the beneficial owner, in the form requested by the beneficial owner, within three business days after receiving the materials from the registrant or other soliciting person; and</P>
                        <P>
                            (e) 
                            <E T="03">Content of Statement of Availability of Proxy Materials.</E>
                             The bank's statement of availability of proxy materials shall:
                        </P>
                        <P>(1) Include all information, as it relates to beneficial owners, required by § 240.14a-16(c);</P>
                        <P>
                            (2) Include the website address established pursuant to paragraph (d)(2) 
                            <PRTPAGE P="45983"/>
                            of this section where beneficial owners are able to access the bank's request for voting instructions; and
                        </P>
                        <P>(3) Otherwise be prepared and sent in a manner consistent with paragraphs (c)(1), (c)(2), and (c)(3) of § 240.14a-16.</P>
                    </SECTION>
                    <AMDPAR>12. Amend § 240.14c-1 by revising it to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14c-1 </SECTNO>
                        <SUBJECT>Definitions.</SUBJECT>
                        <P>Unless the context otherwise requires, all terms used in this regulation have the same meanings as in the Act or elsewhere in the general rules and regulations thereunder. In addition, the following definitions apply unless the context otherwise requires:</P>
                        <P>
                            <E T="03">Address.</E>
                             The term “address” means a mailing address, which would include a street address, a post office box number, or other similar destination to which paper documents are delivered, a facsimile telephone number, or an electronic address, as defined in § 303.101 of Regulation E-Delivery (§§ 303.100 through 104).
                        </P>
                        <P>
                            <E T="03">Associate.</E>
                             The term “associate,” used to indicate a relationship with any person, means:
                        </P>
                        <P>(1) Any corporation or organization (other than the registrant or a majority owned subsidiary of the registrant) of which such person is an officer or partner or is, directly or indirectly, the beneficial owner of 10 percent or more of any class of equity securities;</P>
                        <P>(2) Any trust or other estate in which such person has a substantial beneficial interest or as to which such person serves as trustee or in a similar fiduciary capacity; and</P>
                        <P>(3) Any relative or spouse of such person, or any relative of such spouse, who has the same home as such person or who is a director or officer of the registrant or any of its parents or subsidiaries.</P>
                        <P>
                            <E T="03">Employee benefit plan.</E>
                             For purposes of § 240.14c-7, the term “employee benefit plan” means any purchase, savings, option, bonus, appreciation, profit sharing, thrift, incentive, pension, or similar plan primarily for employees, directors, trustees, or officers.
                        </P>
                        <P>
                            <E T="03">Entity that exercises fiduciary powers.</E>
                             The term “entity that exercises fiduciary powers” means any entity that holds securities in nominee name or otherwise on behalf of a beneficial owner but does not include a clearing agency registered pursuant to section 17A of the Act, or a broker or a dealer.
                        </P>
                        <P>
                            <E T="03">Exempt employee benefit plan securities.</E>
                             For purposes of § 240.14c-7, the term “exempt employee benefit plan securities” means:
                        </P>
                        <P>(1) Securities of the registrant held by an employee benefit plan, as defined in this section, where such plan is established by the registrant; or</P>
                        <P>(2) If notice regarding the current distribution of information statements has been given pursuant to § 240.14c-7(a)(1)(ii)(C) or if notice regarding the current request for a list of names, addresses, and securities positions of beneficial owners has been given pursuant to § 240.14c-7(b)(3), securities of the registrant held by an employee benefit plan, as defined in this section, where such plan is established by an affiliate of the registrant.</P>
                        <P>
                            <E T="03">Information statement.</E>
                             The term “information statement” means the statement required by § 240.14c-2, whether or not contained in a single document.
                        </P>
                        <P>
                            <E T="03">Last fiscal year.</E>
                             The term “last fiscal year” of the registrant means the last fiscal year of the registrant ending prior to the date of the meeting with respect to which an information statement is required to be distributed, or if the information statement involves consents or authorizations in lieu of a meeting, the earliest date on which they may be used to effect corporate action.
                        </P>
                        <P>
                            <E T="03">Proxy.</E>
                             The term “proxy” includes every proxy, consent, or authorization within the meaning of section 14(a) of the Act. The consent or authorization may take the form of failure to object or to dissent.
                        </P>
                        <P>
                            <E T="03">Record date.</E>
                             The term “record date” means the date as of which the record holders of securities entitled to vote at a meeting or by written consent or authorization shall be determined.
                        </P>
                        <P>
                            <E T="03">Record holder.</E>
                             For purposes of § 240.14c-7, the term “record holder” means any broker, dealer, voting trustee, bank, association, or other entity that exercises fiduciary powers which holds securities of record in nominee name or otherwise or as a participant in a clearing agency registered pursuant to section 17A of the Act.
                        </P>
                        <P>
                            <E T="03">Registrant.</E>
                             The term “registrant” means:
                        </P>
                        <P>(1) The issuer of a class of securities registered pursuant to section 12 of the Act; or</P>
                        <P>(2) An investment company registered under the Investment Company Act of 1940 that has made a public offering of its securities.</P>
                        <P>
                            <E T="03">Respondent bank.</E>
                             For purposes of § 240.14c-7, the term “respondent bank” means any bank, association, or other entity that exercises fiduciary powers which holds securities on behalf of beneficial owners and deposits such securities for safekeeping with another bank, association, or other entity that exercises fiduciary powers.
                        </P>
                    </SECTION>
                    <AMDPAR>13. Amend § 240.14c-2 by revising paragraph (d) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14c-2 </SECTNO>
                        <SUBJECT>Distribution of information statement.</SUBJECT>
                        <STARS/>
                        <P>(d) A registrant shall transmit an information statement to security holders pursuant to paragraph (a) of this section by satisfying the requirements set forth in § 240.14a-16; provided, however, that the registrant shall revise the information required in the statement of availability of proxy materials, if any, including changing the title of that statement, to reflect the fact that the registrant is not soliciting proxies for the meeting.</P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>14. Amend § 240.14c-3 by revising paragraph (c) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14c-3 </SECTNO>
                        <SUBJECT>Annual report to be furnished security holders.</SUBJECT>
                        <STARS/>
                        <P>(c) A registrant will be considered to have delivered a statement of availability of proxy materials, annual report to security holders or information statement to security holders of record who share an address if the requirements set forth in § 240.14a-3(e)(1) are satisfied with respect to the statement of availability of proxy materials, annual report to security holders, or information statement, as applicable.</P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>15. Amend § 240.14c-4 by revising paragraph (d) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14c-4 </SECTNO>
                        <SUBJECT>Presentation of information in information statement.</SUBJECT>
                        <STARS/>
                        <P>(d) Where an information statement is delivered through an electronic medium, issuers may satisfy legibility requirements applicable to printed documents, such as type size and font, by presenting all required information in a widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format.</P>
                    </SECTION>
                    <AMDPAR>16. Amend § 240.14c-7 by revising paragraphs (a)(1), (a)(5), (b)(1), (b)(2), and (b)(3) and Note 1 to paragraph (a) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14c-7 </SECTNO>
                        <SUBJECT>Providing copies of material for certain beneficial owners.</SUBJECT>
                        <P>(a) * * *</P>
                        <P>(1) Promptly:</P>
                        <STARS/>
                        <P>
                            (5) Upon the request of any record holder or respondent bank that is supplied with statements of availability of proxy materials, information statements and/or annual reports to security holders pursuant to paragraph (a)(3) of this section, pay its reasonable 
                            <PRTPAGE P="45984"/>
                            expenses for completing the sending of such material to beneficial owners.
                        </P>
                        <P>
                            <E T="03">Note 1:</E>
                             If the registrant's list of security holders indicates that some of its securities are registered in the name of a clearing agency registered pursuant to section 17A of the Act (
                            <E T="03">e.g.,</E>
                             “Cede &amp; Co.,” nominee for the Depository Trust Company), the registrant shall make appropriate inquiry of the clearing agency and thereafter of the participants in such clearing agency who may hold on behalf of a beneficial owner or respondent bank, and shall comply with the above paragraph with respect to any such participant (
                            <E T="03">see</E>
                             § 240.14c-1).
                        </P>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) Promptly inquire of each record holder and each respondent bank identified to the registrant pursuant to § 240.14b-2(e)(1) whether such record holder or respondent bank holds the registrant's securities on behalf of any respondent banks and, if so, the name and address of each such respondent bank;</P>
                        <P>
                            (2) Request such list be compiled as of a date no earlier than five business days after the date the registrant's request is received by the record holder or respondent bank; 
                            <E T="03">Provided, however,</E>
                             that if the record holder or respondent bank has informed the registrant that a designated office(s) or department(s) is to receive such requests, the request shall be made to such designated office(s) or department(s);
                        </P>
                        <P>
                            (3) Make such request to the following persons that hold the registrant's securities on behalf of beneficial owners: all brokers, dealers, banks, associations, and other entities that exercise fiduciary powers; 
                            <E T="03">Provided, however,</E>
                             such request shall not cover beneficial owners of “exempt employee benefit plan securities,” as that term is defined in § 240.14a-1; and, at the option of the registrant, such request may give notice of any employee benefit plan established by an affiliate of the registrant that holds securities of the registrant that the registrant elects to treat as exempt employee benefit plan securities;
                        </P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>17. Amend § 240.14c-101 by revising Item 5 to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.14c-101 </SECTNO>
                        <SUBJECT>Schedule 14C. Information required in information statement.</SUBJECT>
                        <STARS/>
                        <P>
                            <E T="03">Item 5. Delivery of documents to security holders sharing an address.</E>
                             If one annual report to security holders, information statement, or statement of availability of proxy materials is being delivered to two or more security holders who share an address, furnish the following information in accordance with § 240.14a-3(e)(1):
                        </P>
                        <P>(a) State that only one annual report to security holders, information statement, or statement of availability of proxy materials, as applicable, is being delivered to multiple security holders sharing an address unless the registrant has received contrary instructions from one or more of the security holders;</P>
                        <P>(b) Undertake to deliver promptly upon written or oral request a separate copy of the annual report to security holders, information statement, or statement of availability of proxy materials, as applicable, to a security holder at a shared address to which a single copy of the documents was delivered and provide instructions as to how a security holder can notify the registrant that the security holder wishes to receive a separate copy of an annual report to security holders, information statement, or statement of availability of proxy materials, as applicable;</P>
                        <P>(c) Provide the phone number and address to which a security holder can direct a notification to the registrant that the security holder wishes to receive a separate annual report to security holders, information statement, or statement of availability of proxy materials, as applicable, in the future; and</P>
                        <P>(d) Provide instructions how security holders sharing an address can request delivery of a single copy of annual reports to security holders, information statements, or statements of availability of proxy materials if they are receiving multiple copies of annual reports to security holders, information statements, or statements of availability of proxy materials.</P>
                        <STARS/>
                    </SECTION>
                    <AMDPAR>18. Amend § 240.14d-5 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraphs (a)(4)(ii), (b), (c), (f)(3)(iii), (f)(4)(v), (g)(1), (g)(2), and Note to § 240.14d-5; and</AMDPAR>
                    <AMDPAR>b. Adding a note to paragraph (c).</AMDPAR>
                    <P>The revisions and addition read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 240.14d-5 </SECTNO>
                        <SUBJECT>Dissemination of certain tender offers by the use of stockholder lists and security position listings.</SUBJECT>
                        <P>(a) * * *</P>
                        <P>(4) * * *</P>
                        <P>(ii) if the subject company elects to comply with paragraph (b) of this section, appropriate information concerning the location for delivery of the bidder's tender offer materials, the approximate number of security holders that will receive the tender offer materials in paper format, and the approximate direct costs incidental to the dissemination to security holders of the bidder's tender offer materials computed in accordance with paragraph (g)(2) of this section.</P>
                        <P>
                            (b) 
                            <E T="03">Dissemination of tender offer materials by the subject company.</E>
                             A subject company which elects pursuant to paragraph (a)(3) of this section to comply with the provisions of this paragraph shall perform the acts prescribed by the following paragraphs.
                        </P>
                        <P>(1) The subject company shall promptly contact each participant named on the most recent security position listing of any clearing agency within the access of the subject company and make inquiry of each such participant as to the approximate number of beneficial owners of the subject company securities being sought in the tender offer held by each such participant.</P>
                        <P>(2) No later than the third business day after delivery of the bidder's tender offer materials pursuant to paragraph (g)(1) of this section, the subject company shall begin to send or cause to be sent (and if sent by mail, by means of first class mail) a copy of the bidder's tender offer materials to each person whose name appears as a record holder of the class of securities for which the offer is made on the most recent stockholder list referred to in paragraph (a)(2) of this section. The subject company shall use its best efforts to send in a timely manner but in no event shall the dissemination of the bidder's tender offer materials be completed in a substantially greater period of time than the subject company would complete the dissemination to security holders of its own materials relating to the tender offer.</P>
                        <P>(3) No later than the third business day after the delivery of the bidder's tender offer materials pursuant to paragraph (g)(1) of this section, the subject company shall begin to transmit or cause to be transmitted a sufficient number of sets of the bidder's tender offer materials to the participants named on the security position listings described in paragraph (b)(1) of this section. The subject company shall use its best efforts to complete the transmittal in a timely manner but in no event shall such transmittal be completed in a substantially greater period of time than the subject company would complete a transmittal to such participants pursuant to security position listings of clearing agencies of its own material relating to the tender offer.</P>
                        <P>
                            (4) The subject company shall promptly give oral notification to the bidder, which notification shall be confirmed in writing, of the commencement of the dissemination 
                            <PRTPAGE P="45985"/>
                            pursuant to paragraph (b)(2) of this section and of the transmittal pursuant to paragraph (b)(3) of this section.
                        </P>
                        <P>(5) During the tender offer and any extension thereof the subject company shall use reasonable efforts to update the stockholder list and shall send or cause to be sent promptly following each update a copy of the bidder's tender offer materials (to the extent sufficient sets of such materials have been furnished by the bidder) to each person who has become a record holder since the later of</P>
                        <P>(i) the date of preparation of the most recent stockholder list referred to in paragraph (a)(2) of this section or</P>
                        <P>(ii) the last preceding update.</P>
                        <P>(6) If the bidder has elected pursuant to paragraph (f)(1) of this section to require the subject company to disseminate amendments disclosing material changes to the tender offer materials pursuant to this section, the subject company, promptly following delivery of each such amendment, shall send or cause to be sent a copy of each such amendment to each record holder whose name appears on the shareholder list described in paragraphs (a)(2) and (b)(5) of this section and shall transmit or cause to be transmitted sufficient copies of such amendment to each participant named on security position listings who received sets of the bidder's tender offer materials pursuant to paragraph (b)(3) of this section.</P>
                        <P>(7) The subject company shall not include any communication other than the bidder's tender offer materials or amendments thereto in the envelopes or other containers furnished by the bidder for tender offer materials that are mailed.</P>
                        <P>(8) Promptly following the termination of the tender offer, the subject company shall reimburse the bidder the excess, if any, of the amounts advanced pursuant to paragraph (f)(3)(iii) over the direct costs incidental to compliance by the subject company and its agents in performing the acts required by this section computed in accordance with paragraph (g)(2) of this section.</P>
                        <P>
                            (c) 
                            <E T="03">Delivery of stockholder lists and security position listings.</E>
                             A subject company which elects pursuant to paragraph (a)(3) of this section to comply with the provisions of this paragraph shall perform the acts prescribed by the following paragraphs.
                        </P>
                        <P>(1) No later than the third business day after the date of the bidder's request, the subject company must furnish to the bidder at the subject company's principal executive office a copy of the names and all addresses of the record holders on the most recent stockholder list referred to in paragraph (a)(2) of this section; the names and all addresses of participants identified on the most recent security position listing of any clearing agency that is within the access of the subject company; and the most recent list of names, all addresses, and security positions of beneficial owners as specified in § 240.14a-13(b), in the possession of the subject company, or that subsequently comes into its possession. All security holder list information must be in the format requested by the bidder to the extent the format is available to the subject company without undue burden or expense.</P>
                        <P>(2) If the bidder has elected pursuant to paragraph (f)(1) of this section to require the subject company to disseminate amendments disclosing material changes to the tender offer materials, the subject company shall update the stockholder list by furnishing the bidder with the name and all addresses of each record holder named on the stockholder list, and not previously furnished to the bidder, promptly after such information becomes available to the subject company during the tender offer and any extensions thereof.</P>
                        <P>Note to paragraph (c): For purposes of this paragraph (c), the term “address” means any mailing address, which would include a street address, a post office box, or other similar destination to which paper documents are delivered, facsimile telephone number, or electronic address, as defined in § 303.101 of Regulation E-Delivery (§§ 303.100 through 104). If the subject company cannot provide all of the stockholder list information specified in paragraph (c)(1) of this section, the subject company must send the bidder's tender offer materials in accordance with paragraph (b) of this section.</P>
                        <STARS/>
                        <P>(f) * * *</P>
                        <P>(3) * * *</P>
                        <P>(iii) The bidder shall advance to the subject company an amount equal to the approximate cost of disseminating the bidder's tender offer materials to security holders computed in accordance with paragraph (g)(2) of this section;</P>
                        <STARS/>
                        <P>(4) * * *</P>
                        <P>(v) The bidder shall mail by means of first class mail or otherwise furnish with reasonable promptness, at its own expense, a copy of its tender offer materials to each person whose identity appears on the stockholder list as furnished and updated by the subject company pursuant to paragraphs (c)(1) and (2) of this section;</P>
                        <STARS/>
                        <P>
                            (g) 
                            <E T="03">Delivery of materials, computation of direct costs.</E>
                        </P>
                        <P>
                            (1) Whenever the bidder is required to deliver tender offer materials or amendments to tender offer materials, the bidder shall deliver to the subject company at the location specified by the subject company in its notice given pursuant to paragraph (a)(4) of this section a number of sets of the materials or of the amendment, as the case may be, at least equal to the approximate number of security holders receiving the tender offer materials by mail, as specified by the subject company in such notice, together with appropriate envelopes or other containers therefor: 
                            <E T="03">Provided, however,</E>
                             that such delivery shall be deemed not to have been made unless the bidder has complied with paragraph (f)(3)(iii) of this section at the time the materials or amendments, as the case may be, are delivered.
                        </P>
                        <P>(2) If applicable, the approximate direct cost of mailing the bidder's tender offer materials shall be computed by adding (i) the direct cost incidental to the mailing of the subject company's last annual report to shareholders (excluding employee time), less the costs of preparation and printing of the report, and postage, plus (ii) the amount of first class postage required to mail the bidder's tender offer materials. The approximate direct costs incidental to the mailing of the amendments to the bidder's tender offer materials shall be computed by adding (iii) the estimated direct costs of preparing mailing labels, of updating shareholder lists, and of third party handling charges plus (iv) the amount of first class postage required to mail the bidder's amendment. Direct costs incidental to the mailing of the bidder's tender offer materials and amendments thereto when finally computed may include all reasonable charges paid by the subject company to third parties for supplies or services, including costs attendant to preparing shareholder lists, mailing labels, handling the bidder's materials, contacting participants named on security position listings and for postage, but shall exclude indirect costs, such as employee time which is devoted to either contesting or supporting the tender offer on behalf of the subject company. The final billing for direct costs shall be accompanied by an appropriate accounting in reasonable detail.</P>
                        <P>
                            <E T="03">Note to § 240.14d-5:</E>
                             Reasonably prompt methods of distribution to security holders, including electronic 
                            <PRTPAGE P="45986"/>
                            delivery in accordance with § 303.102 of Regulation E-Delivery, may be used instead of mailing. If alternative methods are chosen, the approximate direct costs of distribution shall be computed by adding the estimated direct costs of preparing the document for distribution through the chosen medium (including updating of shareholder lists) plus the estimated reasonable cost of distribution through that medium. Direct costs incidental to the distribution of tender offer materials and amendments thereto may include all reasonable charges paid by the subject company to third parties for supplies or services, including costs attendant to preparing shareholder lists, handling the bidder's materials, and contacting participants named on security position listings, but shall not include indirect costs, such as employee time which is devoted to either contesting or supporting the tender offer on behalf of the subject company.
                        </P>
                    </SECTION>
                    <AMDPAR>19. Amend § 240.17a-3 by revising paragraph (a)(9)(ii) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 240.17a-3 </SECTNO>
                        <SUBJECT>Records to be made by certain exchange members, brokers and dealers.</SUBJECT>
                        <STARS/>
                        <P>(a) * * *</P>
                        <P>(9) * * *</P>
                        <P>(ii) Except with respect to “exempt employee benefit plan securities,” as that term is defined in § 240.14a-1, but only to the extent such securities are held by employee benefit plans established by the issuer of the securities, whether or not the beneficial owner of securities registered in the name of such members, brokers or dealers, or a registered clearing agency or its nominee objects to disclosure of his or her identity, address, and securities positions to issuers;</P>
                        <STARS/>
                    </SECTION>
                    <PART>
                        <HD SOURCE="HED">PART 270—GENERAL RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940</HD>
                    </PART>
                    <AMDPAR>20. The authority citation for part 270 continues to read in part as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority: </HD>
                        <P>
                            15 U.S.C. 80a-1 
                            <E T="03">et seq.,</E>
                             80a-34(d), 80a-37, 80a-39, and Pub. L. 111-203, sec. 939A, 124 Stat. 1376 (2010), unless otherwise noted.
                        </P>
                    </AUTH>
                    <STARS/>
                    <AMDPAR>21. Remove § 270.30e-3.</AMDPAR>
                    <AMDPAR>22. Add part 303 to read as follows:</AMDPAR>
                    <PART>
                        <HD SOURCE="HED">PART 303—REGULATION E-DELIVERY: DELIVERING COVERED INFORMATION THROUGH ELECTRONIC DELIVERY</HD>
                        <CONTENTS>
                            <SECHD>Sec.</SECHD>
                            <SECTNO>303.100 </SECTNO>
                            <SUBJECT>Purpose and Scope</SUBJECT>
                            <SECTNO>303.101 </SECTNO>
                            <SUBJECT>Definitions</SUBJECT>
                            <SECTNO>303.102 </SECTNO>
                            <SUBJECT>Use of Electronic Delivery; Electronic Delivery Methods and Requirements</SUBJECT>
                            <SECTNO>303.103 </SECTNO>
                            <SUBJECT>Requirements for website Availability of Covered Information</SUBJECT>
                            <SECTNO>303.104 </SECTNO>
                            <SUBJECT>Transition Process for Covered Recipients Receiving Paper</SUBJECT>
                        </CONTENTS>
                        <AUTH>
                            <HD SOURCE="HED">Authority: </HD>
                            <P>15 U.S.C. 77c, 77d, 77d-1, 77g, 77j, 77s, 77z-2, and 77z-3, 77ddd, 77eee, 77nnn, 77sss, 78c-4, 78m, 78n, 78o, 78o-10, 78q-1, 78w, 78ll, 80a-6, 80a-8, 80a-19(a), 80a-20, 80a-24, 80a-29, 80a-37, 80b-3, 80b-4, 80b-11, and 7004.</P>
                        </AUTH>
                        <SECTION>
                            <SECTNO>§ 303.100 </SECTNO>
                            <SUBJECT>Purpose and Scope.</SUBJECT>
                            <P>Notwithstanding 15 U.S.C. 7001(c), a covered entity may rely on Regulation E-Delivery to use electronic delivery to deliver covered information to covered recipients, provided that the requirements in §§ 303.102 through104 are satisfied, as applicable.</P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 303.101 </SECTNO>
                            <SUBJECT>Definitions.</SUBJECT>
                            <P>As used in § 303.100 through § 303.104, unless the context requires otherwise:</P>
                            <P>
                                <E T="03">Commission</E>
                                 means the Securities and Exchange Commission.
                            </P>
                            <P>
                                <E T="03">Covered entity</E>
                                 means any person required to deliver covered information to a covered recipient.
                            </P>
                            <P>
                                <E T="03">Covered information</E>
                                 means any information required to be delivered to a covered recipient under the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, or any other of the Federal securities laws, except information required to be delivered under 17 CFR part 227 (Regulation Crowdfunding), 17 CFR 240.15c2-11, or 17 CFR 240.15Fi-2.
                            </P>
                            <P>
                                <E T="03">Covered recipient</E>
                                 means any current or prospective customer, client, investor, security holder, counterparty, or similar recipient to whom a covered entity is required to deliver covered information.
                            </P>
                            <P>
                                <E T="03">Covered recipient receiving paper</E>
                                 means a covered recipient who, as of the effective date of Regulation E-Delivery, receives any covered information in paper format from or on behalf of a covered entity, and for whom such covered entity has an electronic address.
                            </P>
                            <P>
                                <E T="03">Deliver</E>
                                 (or as relevant, 
                                <E T="03">delivery</E>
                                ) means, as applicable, to deliver, furnish, transmit, send, give, mail, provide, forward, make available, or disseminate information, as described in the Federal securities laws.
                            </P>
                            <P>
                                <E T="03">Electronic address</E>
                                 means an identifier used to communicate with a covered recipient electronically, including: an email address; a mobile phone number; or any other means of electronic communication capable of receiving electronic delivery pursuant to an electronic delivery method as set forth in § 303.102(c) and alerting a covered recipient that covered information is available.
                            </P>
                            <P>
                                <E T="03">Electronic delivery</E>
                                 means delivery of covered information to a covered recipient's electronic address.
                            </P>
                            <P>
                                <E T="03">Personal financial information</E>
                                 means information specific to a covered recipient's personal financial matters, such as an account number or details regarding a specific securities transaction.
                            </P>
                            <P>
                                <E T="03">Website</E>
                                 means an internet website or other internet- or electronic-based location where information is stored or presented, such as a mobile application, to which a covered recipient has been provided reasonable access.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 303.102 </SECTNO>
                            <SUBJECT>Use of Electronic Delivery; Electronic Delivery Methods and Requirements.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Use of electronic delivery.</E>
                                 A covered entity may deliver covered information to a covered recipient who has not opted out of electronic delivery under paragraph (f)(2) of this section by delivering that information to an electronic address that the covered recipient provides (or accepts to use) to receive covered information, and satisfying the requirements in paragraphs (b) through (h) of this section.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Disclosure of electronic delivery.</E>
                            </P>
                            <P>(1) Before relying on this section to deliver covered information to a covered recipient electronically, a covered entity must provide a clear and conspicuous disclosure to the covered recipient that:</P>
                            <P>(i) Describes the types of covered information that will be delivered electronically to the electronic address the covered recipient provides (or accepts to use) to receive covered information, unless the covered recipient opts out of electronic delivery, and, if applicable, discloses whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity; or</P>
                            <P>(ii) States that the covered recipient may opt to have covered information delivered electronically to the electronic address the covered recipient provides (or accepts to use) to receive covered information.</P>
                            <P>(2) This disclosure also must describe the methods of electronic delivery that may be used pursuant to § 303.102(c).</P>
                            <P>
                                (3) A covered entity is not required to provide this disclosure to a covered recipient who received an initial notice, as described in § 303.104(c), or who received electronic delivery of all 
                                <PRTPAGE P="45987"/>
                                covered information by or on behalf of the covered entity as of the effective date of Regulation E-Delivery.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Electronic delivery methods.</E>
                                 A covered entity must use the electronic delivery methods set forth in paragraphs (c)(1) or (c)(2), as applicable.
                            </P>
                            <P>
                                (1) 
                                <E T="03">Delivery of statement of availability of covered information to an electronic address.</E>
                                 A covered entity must deliver covered information that includes personal financial information, and may deliver all other covered information, through delivery of a statement of availability of covered information as set forth in this paragraph (c)(1). A statement of availability must include the following content.
                            </P>
                            <P>(i) A prominent statement alerting the covered recipient that covered information is available, which identifies the covered information and the covered entity.</P>
                            <P>(ii) A brief description of the covered information (that, as applicable, identifies whether the covered information may require action by the covered recipient within a fixed time frame to exercise certain rights, and whether the covered information is delivered by a person delivering on behalf of the covered entity).</P>
                            <P>(iii) A website address where the covered information is available, that:</P>
                            <P>(A) With respect to covered information that does not include personal financial information, leads the covered recipient directly to the covered information that is described in the statement of availability;</P>
                            <P>(B) With respect to covered information that includes personal financial information, requires the use of a process reasonably designed to safeguard the personal financial information, and leads the covered recipient directly to the covered information immediately after the covered recipient completes such process; and</P>
                            <P>(C) Meets the requirements in § 303.103.</P>
                            <P>(iv) A statement that covered information made available on a website may be superseded by subsequent versions of the covered information.</P>
                            <P>(v) A prominent statement describing:</P>
                            <P>(A) The covered entity's obligation to provide a paper copy of covered information free of charge, upon request;</P>
                            <P>(B) The ability to opt out of electronic delivery at any time and receive all or a subset of covered information in paper format, free of charge, following an opt-out election;</P>
                            <P>(C) The ability to update one's electronic address free of charge (including, if applicable, an explanation of how to change the type of electronic address that will be used for delivery, such as email or mobile phone number); and</P>
                            <P>(D) The process for a covered recipient to request paper copies, opt out of e-delivery, and update one's electronic address, which at a minimum must direct a covered recipient to a website through which one can make these requests and updates. If applicable, a covered entity must disclose whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity.</P>
                            <P>
                                (2) 
                                <E T="03">Direct delivery of covered information that does not include personal financial information to an electronic address.</E>
                                 A covered entity may deliver covered information that does not include personal financial information directly to a covered recipient's electronic address. The direct delivery of the covered information must include the information described in paragraphs (c)(1)(i), (c)(1)(ii), and (c)(1)(v) of this section (with the same prominence requirements as described in these paragraphs), as well as all of the covered information being delivered either in the body of the communication or as an attachment (in either case presented in a widely available format that is convenient for reading in electronic format, being printed on paper, and permanently retaining in an electronic format).
                            </P>
                            <P>
                                (d) 
                                <E T="03">Timing of electronic delivery.</E>
                                 The statement of availability as described in paragraph (c)(1) or the direct delivery of covered information as described in paragraph (c)(2) must be delivered no later than the date by which the covered information is required to be delivered under the Federal securities laws.
                            </P>
                            <P>
                                (e) 
                                <E T="03">Other requirements for form and manner of electronic delivery.</E>
                                 A statement of availability as described in paragraph (c)(1) may provide that multiple items of covered information are available for review, and multiple items of covered information may be included in a direct delivery of covered information as described in paragraph (c)(2). In addition, a statement of availability or direct delivery of covered information must be delivered separately from communications that are not covered information, except as otherwise provided under the Federal securities laws. The statement of availability or direct delivery must contain only the content required in paragraph (c)(1) and (c)(2), as applicable, except that it also may include any content expressly required under the Federal securities laws, and pictures, logos, or similar design or text elements that are not misleading and do not make the covered information unclear.
                            </P>
                            <P>
                                (f) 
                                <E T="03">Obligation of covered entity to provide paper copies of covered information on request and to permit covered recipients to opt out of electronic delivery.</E>
                            </P>
                            <P>
                                (1) 
                                <E T="03">Paper copies of covered information.</E>
                                 The covered entity must send, free of charge, one paper copy of any of the covered information that the covered entity has delivered through electronic delivery to a covered recipient during the period the covered entity is required to retain the covered information under the Federal securities laws, or in the two years preceding the date of the covered recipient's request if there is no such requirement, to any such covered recipient requesting such a copy. Unless otherwise specified in the Federal securities laws, the covered entity must send the paper copy of covered information by U.S. first class mail or another reasonably prompt means within three business days after receiving the covered recipient's request.
                            </P>
                            <P>
                                (2) 
                                <E T="03">Opting out of electronic delivery for any or all covered information.</E>
                                 A covered entity must permit a covered recipient to opt out of electronic delivery at any time and receive delivery only in paper format, free of charge, with respect to any or all covered information after opting out. The covered entity must promptly comply with a covered recipient's opt-out election.
                            </P>
                            <P>
                                (g) 
                                <E T="03">Updates to electronic address and choice of type of electronic address used for electronic delivery.</E>
                                 A covered entity must permit a covered recipient, free of charge, to update the covered recipient's electronic address upon request, including as applicable updating the covered recipient's choice as to the type of electronic address to be used for electronic delivery (for example, email, mobile phone number).
                            </P>
                            <P>
                                (h) 
                                <E T="03">Identifying and remediating electronic delivery failures.</E>
                                 The covered entity must adopt and implement written policies and procedures reasonably designed to identify and remediate failed electronic delivery. If any failed electronic delivery is identified, the covered entity must promptly take reasonable remediation steps, including obtaining a new electronic address or delivering the covered information in paper format until the covered recipient provides a new electronic address.
                            </P>
                        </SECTION>
                        <SECTION>
                            <PRTPAGE P="45988"/>
                            <SECTNO>§ 303.103 </SECTNO>
                            <SUBJECT>Requirements for website Availability of Covered Information.</SUBJECT>
                            <P>When a covered entity uses the electronic delivery method in § 303.102(c)(1) (delivery of statement of availability of covered information to an electronic address), the covered information must be posted to a website, which may not be the address of any Commission electronic filing system, meeting the following requirements.</P>
                            <P>
                                (a) 
                                <E T="03">Timing.</E>
                                 The covered information must be available on the website no later than the date by which the covered information must be delivered under the Federal securities laws, and no later than the date by which the statement of availability of covered information is delivered.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Availability period.</E>
                                 The covered information must remain available on the website for at least three years for covered information that includes personal financial information or at least one year for covered information that does not include personal financial information, unless a different website availability period is provided for the covered information under the Federal securities laws.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Format and retainability.</E>
                                 The covered information must be presented on the website in a format, or formats, that are convenient for both reading online and printing on paper; persons accessing the covered information must be able to retain the covered information permanently, free of charge, in an electronic format that meets these requirements.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Accessing covered information that contains personal financial information.</E>
                                 Covered information that contains personal financial information must be accessible on the website only through the use of a process reasonably designed to safeguard the covered information.
                            </P>
                            <P>
                                (e) 
                                <E T="03">Continuous availability and periods of temporary unavailability.</E>
                                 The requirements set forth in paragraphs (a) through (d) of this section will be deemed to be met notwithstanding the fact that the website and covered information become temporarily unavailable, provided that:
                            </P>
                            <P>
                                (1) 
                                <E T="03">Policies and Procedures.</E>
                                 The covered entity adopts and implements written policies and procedures reasonably designed to ensure that the covered information is made available and remains available in the manner required by this section; and
                            </P>
                            <P>
                                (2) 
                                <E T="03">Prompt action.</E>
                                 The covered entity takes prompt action to ensure that the covered information becomes available in the manner required by this section as soon as practicable following the earlier of the time at which the covered entity knows or reasonably should have known that the covered information is temporarily unavailable.
                            </P>
                        </SECTION>
                        <SECTION>
                            <SECTNO>§ 303.104 </SECTNO>
                            <SUBJECT>Transition Process for Covered Recipients Receiving Paper.</SUBJECT>
                            <P>
                                (a) 
                                <E T="03">Scope.</E>
                                 This section provides requirements regarding a covered entity's transition to default electronic delivery for covered recipients receiving paper.
                            </P>
                            <P>
                                (b) 
                                <E T="03">Transition timing.</E>
                                 Except as otherwise provided in paragraph (e) of this section, a covered entity may use electronic delivery as the default delivery method for any covered recipient receiving paper beginning 180 days following the date of the provision of the initial notice described in paragraph (c) of this section, if the covered entity provides a follow-up notice as required by paragraph (d) of this section and the covered recipient receiving paper has not opted out of electronic delivery.
                            </P>
                            <P>
                                (c) 
                                <E T="03">Initial notice.</E>
                                 A covered entity must provide a clear and conspicuous initial notice in paper format to each covered recipient receiving paper at the covered recipient's last known physical address of record.
                            </P>
                            <P>
                                (1) 
                                <E T="03">Required content.</E>
                                 The initial notice must include the following.
                            </P>
                            <P>(i) A prominent statement that alerts the covered recipient about the upcoming transition to electronic delivery of covered information, which must include:</P>
                            <P>(A) A brief description of each type of covered information that will be delivered using electronic delivery (identifying which covered information may require action by the covered recipient within a fixed time frame to exercise certain rights, and which covered information may be delivered by someone other than the covered entity providing the notice or a person delivering on behalf of the covered entity), and, if applicable, discloses whether a covered recipient's request for paper or to opt out of e-delivery could result in restrictions on or termination of the covered recipient's relationship with the covered entity; and</P>
                            <P>(B) A description of the methods of electronic delivery that may be used pursuant to § 303.102(c).</P>
                            <P>(ii) The electronic address that will be used to deliver covered information to the covered recipient.</P>
                            <P>(iii) The date when the default to electronic delivery will begin, which must be no earlier than 180 days after the date of the provision of the initial notice.</P>
                            <P>(iv) A prominent statement describing:</P>
                            <P>(A) The ability to opt out of electronic delivery at any time and receive all or a subset of covered information in paper format, free of charge, following an opt-out election;</P>
                            <P>(B) The ability to update or confirm one's electronic address free of charge (including, if applicable, an explanation of how to change the type of electronic address that will be used for delivery, such as email or mobile phone number);</P>
                            <P>(C) The process for a covered recipient to opt out of e-delivery and/or update or confirm one's electronic address, which at a minimum must include a toll-free telephone number and a website provided by the covered entity; and</P>
                            <P>(D) Whether the covered entity intends to begin using electronic delivery to deliver covered information earlier than 180 days after the date of the provision of the initial notice if the covered recipient updates or confirms an electronic address following delivery of the initial notice.</P>
                            <P>
                                (2) 
                                <E T="03">Separate provision of initial notice; permitted content.</E>
                                 The initial notice must be provided separately from other communications and may contain only the information required by paragraph (c)(1) of this section, except that it also may include pictures, logos, or similar design elements that are not misleading and do not make the notice unclear.
                            </P>
                            <P>
                                (d) 
                                <E T="03">Follow-up notice.</E>
                                 A covered entity must provide a clear and conspicuous follow-up notice in paper format to each covered recipient receiving paper at the covered recipient's last known physical address of record. The date of the provision of the follow-up notice must be 30 days prior to the date identified in paragraph (b) of this section. The follow-up notice must comply with the content and other requirements described in paragraph (c).
                            </P>
                            <P>
                                (e) 
                                <E T="03">Effect of Provision or Confirmation of Electronic Address.</E>
                                 A covered entity may begin using electronic delivery pursuant to § 303.102 at any time for any covered recipient receiving paper who updates or confirms an electronic address in response to receiving the initial notice or follow-up notice described in paragraphs (c) and (d) of this section, and who has not opted out of electronic delivery. If a covered recipient receiving paper updates or confirms an electronic address at any time after receiving the initial notice described in paragraph (c) of this section, a covered entity is not required to provide the follow-up notice described in paragraph (d) of this section.
                            </P>
                            <P>
                                (f) 
                                <E T="03">Effect of Opting Out of Electronic Delivery.</E>
                                 If a covered recipient, at any 
                                <PRTPAGE P="45989"/>
                                time after receiving the initial notice described in paragraph (c) of this section, opts out of electronic delivery and elects to receive all or a subset of covered information in paper format, as described in paragraph (c)(1)(i)(A), a covered entity is not required to provide the follow-up notice described in paragraph (d) of this section.
                            </P>
                        </SECTION>
                        <SIG>
                            <P>By the Commission.</P>
                            <DATED>Dated: July 16, 2026.</DATED>
                            <NAME>Vanessa A. Countryman,</NAME>
                            <TITLE>Secretary.</TITLE>
                        </SIG>
                    </PART>
                </SUPLINF>
                <FRDOC>[FR Doc. 2026-14679 Filed 7-20-26; 8:45 am]</FRDOC>
                <BILCOD> BILLING CODE 8011-01-P</BILCOD>
            </PRORULE>
        </PRORULES>
    </NEWPART>
</FEDREG>
