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Code · REGISTER · 2006-07-03 · PROPOSED RULES · Advisory Advisory Council on Historic Preservation See Historic Preservation, Advisory Council Agricultural Agricultural Marketing Service PROPOSED RULES National Organic Program: Allowed and prohibit · Unknown

Unknown. Final rules

39,093 words·~178 min read·/register/2006/07/03/06-5957·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2006-07-03.xml --- 71 127 Monday, July 3, 2006 Contents Advisory Advisory Council on Historic Preservation See Historic Preservation, Advisory Council Agricultural Agricultural Marketing Service PROPOSED RULES National Organic Program: Allowed and prohibited substances; national list, 37854-37857 E6-10393 Agriculture Agriculture Department See Agricultural Marketing Service See Commodity Credit Corporation See Farm Service Agency See Forest Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 37887-37889 E6-10336 E6-10337 E6-10389 E6-10391 Alcohol Alcohol and Tobacco Tax and Trade Bureau PROPOSED RULES Alcohol; viticultural area designations:
Outer Coastal Plain, NJ, 37870-37874 E6-10384 NOTICES Agency information collection activities; proposals, submissions, and approvals, 37977-37978 E6-10385 Centers Centers for Disease Control and Prevention NOTICES Agency information collection activities; proposals, submissions, and approvals, 37938-37940 E6-10358 E6-10359 Meetings: Disease, Disability, and Injury Prevention and Control Special Emphasis Panels, 37940 06-5972 National Center for Injury Prevention and Control Initial Review Group, 37940 E6-10353 Coast Guard Coast Guard RULES Ports and waterways safety; regulated navigation areas, safety zones, security zones, etc.:
Cooper River and Patriots Point, SC, 37825-37827 E6-10366 Fox Lake, IL; Mineola Bay fireworks, 37833-37835 E6-10319 Lake Macatawa, Holland, MI, 37837-37839 E6-10326 Lake Michigan and Kenosha Harbor, WI, 37822-37824 E6-10392 Lake Michigan Captain of the Port Zone, MI, 37824-37825 E6-10365 Lake Michigan, Dunes Acres, Michigan City, IN, 37827-37829 E6-10330 Lake Michigan, New Buffalo, MI; Ship and Shore Festival Fireworks, 37835-37837 E6-10317 Pentwater, MI; July 3rd fireworks display, 37831-37833 E6-10321 St.
Lawrence River and Alexandria Bay, NY; Fourth of July fireworks display, 37829-37831 E6-10320 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Commodity Commodity Credit Corporation PROPOSED RULES Loan and purchase programs: Marketing assistance loans; grain security storage requirements, 37857-37862 E6-10368 NOTICES Loan and purchase programs: Marketing assistance loans; emergency storage of grain collateral, 37889-37890 E6-10367 Commodity Commodity Futures Trading Commission RULES Commodity Exchange Act:
Market and large trader reporting; amendments, 37809-37822 E6-10383 Consumer Consumer Product Safety Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 37910 E6-10400 Defense Defense Department See Navy Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 37910-37911 06-5948 06-5949 Arms sales notification; transmittal letter, etc., 37911-37915 06-5947 Education Education Department RULES Postsecondary education:
Academic Competitiveness Grant and National Science and Mathematics Access to Retain Talent Grant Programs; grant and loan programs amendments, 37990-38012 06-5937 NOTICES Agency information collection activities; proposals, submissions, and approvals, 37920-37921 E6-10363 Committees; establishment, renewal, termination, etc.: Education Sciences National Board; Institute of Education Sciences priorities development; comment request, 38014-38020 06-5959 Grants and cooperative agreements; availability, etc.:
Innovation and improvement— Charter Schools Program, 37921-37926 E6-10396 Postsecondary education— Upward Bound Program, 37926-37928 E6-10398 Special education and rehabilitative services: Blind vending facilities under Randolph-Shepard Act— Arbitration panel decisions, 37928-37930 E6-10397 Employment Employment and Training Administration NOTICES Grants and cooperative agreements; availability, etc.: Community-Based Job Training Grants, 37948-37960 06-5951 President's High Growth Job Training Initiative— Advanced manufacturing industry; correction, 37960 E6-10362 Energy Energy Department See Federal Energy Regulatory Commission EPA Environmental Protection Agency PROPOSED RULES Water pollution control:
National Pollutant Discharge Elimination System— Concentrated animal feeding operations; permitting requirements and effluent limitations guidelines; court order response; public meetings, 37880-37881 E6-10426 NOTICES Environmental statements; availability, etc.: Agency comment availability, 37933-37934 E6-10395 Agency weekly receipts, 37934 E6-10394 Executive Executive Office of the President See Presidential Documents Farm Farm Service Agency NOTICES Loan and purchase programs:
Marketing assistance loans; emergency storage of grain collateral, 37889-37890 E6-10367 FAA Federal Aviation Administration RULES Airworthiness directives: Boeing Correction, 37980 C6-5585 PROPOSED RULES Airworthiness directives: BAE Systems (Operations) Ltd., 37868-37870 E6-10352 FBI Federal Bureau of Investigation NOTICES Agency information collection activities; proposals, submissions, and approvals, 37945-37947 E6-10404 06-5939 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation combined filings, 37931-37933 E6-10328 *Applications, hearings, determinations, etc.:* Duke Energy Oakland LLC, 37930 E6-10332 New York Power Authority, 37930 E6-10333 Virginia Electric & Power Co., 37930-37931 E6-10331 Federal Railroad Federal Railroad Administration NOTICES Railroad safety:
Hazardous materials— Railroad tank car safety, 37974-37975 E6-10371 Federal Reserve Federal Reserve System NOTICES Agency information collection activities; proposals, submissions, and approvals, 37935 E6-10339 Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species: Critical habitat designations— Mountain yellow-legged frog, 37881-37886 E6-10458 Forest Forest Service NOTICES Meetings: Resource Advisory Committees— Lincoln County, 37890 06-5953 Resource Advisory Councils— Southwest Idaho, 37890 06-5973 National Forest System lands:
National trail classification system; trail class matrix and design perameters; policy and directives, 38022-38052 06-5967 Government Government Ethics Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 37936-37937 E6-10345 Health Health and Human Services Department See Centers for Disease Control and Prevention See Substance Abuse and Mental Health Services Administration NOTICES Grants and cooperative agreements; availability, etc.:
Family Planning Services, 37982-37988 06-5956 Meetings: Physical Fitness and Sports, President's Council, 37937 E6-10347 Privacy Act: system of records, 37937-37938 E6-10346 Historic Historic Preservation, Advisory Council NOTICES Reports and guidance documents; availability, etc.: Treatment of burial sites, human remains, and funerary objects; policy statement, 37887 06-5946 Homeland Homeland Security Department See Coast Guard See U.S. Citizenship and Immigration Services Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See Minerals Management Service See National Park Service International International Trade Administration NOTICES Antidumping:
Freshwater crawfish tail meat from— China, 37902-37904 E6-10375 Helical spring lock washers from— China and Taiwan, 37904 E6-10382 Honey from— China, 37904-37905 E6-10376 Stainless steel bar from— India, 37905-37906 E6-10386 Stainless steel sheet and strip in coils from— Korea, 37906-37908 E6-10387 Antidumping and countervailing duties: Administrative review requests, 37890-37901 E6-10380 E6-10381 Five-year (sunset reviews)— Advance notification, 37901-37902 E6-10388 International International Trade Commission NOTICES Import investigations:
Stainless steel angle from— Various countries, 37945 E6-10344 Tin- and chromium-coated steel sheet from— Japan, 37944-37945 E6-10342 Justice Justice Department See Federal Bureau of Investigation See Justice Programs Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 37945 06-5941 Justice Justice Programs Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 37947 06-5940 Labor Labor Department See Employment and Training Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 37948 E6-10361 Land Land Management Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 37943 06-5958 Oil and gas leases:
Wyoming, 37943-37944 E6-10377 E6-10378 Minerals Minerals Management Service PROPOSED RULES Outer Continental Shelf ; oil, gas and sulphur operations: Platforms and structures; pipelines and pipeline rights-of-way, 37874-37880 E6-10401 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: West Coast States and Western Pacific fisheries— Pacific Coast groundfish, 37839-37853 06-5957 NOTICES Environmental statements; notice of intent: Delaware River, DE, NJ and PA; crude oil discharge from M/T ATHOS I; natural resource damage assessment and restoration planning, 37908-37910 E6-10340 National Park National Park Service NOTICES National Register of Historic Places; pending nominations, 37944 E6-10322 Navy Navy Department NOTICES Environmental statements; record of decision:
Avon Park Air Force Range, FL, 37915-37920 E6-10356 Nuclear Nuclear Regulatory Commission PROPOSED RULES National Source Tracking System; manufacture, transfer, receipt, or disposal of nationally tracked sealed sources; establishment, 37862 E6-10422 NOTICES Agency information collection activities; proposals, submissions, and approvals, 37960-37961 E6-10350 Environmental statements; availability, etc.: Humboldt Bay Power Plant, 37961-37962 E6-10354 Rio Algom Mining LLC, 37962-37964 E6-10349 Yankee Atomic Electric Co., 37964-37965 E6-10355 Presidential Presidential Documents EXECUTIVE ORDERS Defense and national security:
Classified national security information access; extending duration of EO 13381 for one year (EO 13408), 37807 06-5984 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc., 37965-37971 E6-10334 E6-10338 Pacific Exchange, Inc., 37971-37974 E6-10335 Substance Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 37940-37941 E6-10351 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, control, etc.:
New Mexico Gateway Railroad LLC, 37975-37976 06-5820 Railroad services abandonment: Consolidated Rail Corp., 37976-37977 E6-10373 Thrift Thrift Supervision Office PROPOSED RULES Savings associations: Subordinated debt securities and mandatorily redeemable preferred stock; inclusion as supplementary capital, 37862-37868 E6-10341 Transportation Transportation Department See Federal Aviation Administration See Federal Railroad Administration See Surface Transportation Board NOTICES *Applications, hearings, determinations, etc.:* Mokulele Flight Service, Inc., 37974 E6-10390 Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau See Thrift Supervision Office U.S.-China U.S.-China Economic and Security Review Commission NOTICES Hearings, 37978-37979 E6-10348 U.S.
Citizenship U.S. Citizenship and Immigration Services NOTICES Temporary protected status program designations; terminations, extensions, etc.: El Salvador, 37941-37943 06-5975 Veterans Veterans Affairs Department NOTICES Committees; establishment, renewal, termination, etc.: Blue Ribbon Panel on VA-Medical School Affiliations, 37979 06-5935 Separate Parts In This Issue Part II Health and Human Services Department, 37982-37988 06-5956 Part III Education Department, 37990-38012 06-5937 Part IV Education Department, 38014-38020 06-5959 Part V Agriculture Department, Forest Service, 38022-38052 06-5967 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.
To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 71 127 Monday, July 3, 2006 Rules and Regulations COMMODITY FUTURES TRADING COMMISSION 17 CFR Parts 1, 15, 16, 17, 18, 19, 21, and 37 RIN 3038-AC22 Market and Large Trader Reporting AGENCY: Commodity Futures Trading Commission.
ACTION: Final rules. SUMMARY: The Commodity Futures Trading Commission is adopting new and amended market and large trader reporting rules. The final rules accomplish the following: Codify a reporting level for contracts based on 3-Year U.S. Treasury Notes; clarify the reporting obligations of registered derivatives transaction execution facilities and their market participants; require designated contract markets to publicly disseminate integrated volume data for each contract that separately identifies the volume generated from block trades; establish a reporting framework for exclusively self-cleared contracts; and implement a number of conforming, clarifying, and technical amendments.
DATES: Effective July 3, 2006. FOR FURTHER INFORMATION CONTACT: Gary Martinaitis, Associate Deputy Director for Market Information, Market Surveillance Section (telephone 202.418.5209, e-mail *gmartinaitis@cftc.gov* ), or Bruce Fekrat, Special Counsel, Office of the Director (telephone 202.418.5578, e-mail *bfekrat@cftc.gov* ), Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. SUPPLEMENTARY INFORMATION:
I. Market and Large Trader Reporting Rules The market and large trader reporting rules (reporting rules) are contained in parts 15 through 21 of the Commission's regulations. 1 Collectively, the reporting rules effectuate the Commission's market and financial surveillance programs. 2 The market surveillance programs analyze market data to detect and prevent market disruptions and enforce speculative position limits. The financial surveillance programs use market data to measure the financial risks that large contract positions may pose to Commission registrants and clearing organizations. 1 17 CFR parts 15 to 21. 2 *See* 69 FR 76392 (December 21, 2004).
The Commission's reporting rules are implemented partly pursuant to the authority of sections 4a, 4c(b), 4g, and 4i of the Commodity Exchange Act (Act or CEA). 3 Section 4a of the Act permits the Commission to set, approve exchange-set, and enforce speculative position limits. 4 Section 4c(b) of the Act gives the Commission plenary authority to regulate transactions involving commodity options. 5 Section 4g of the Act imposes reporting and recordkeeping obligations on registered entities, and obligates futures commission merchants (FCMs), introducing brokers, floor brokers, and floor traders to file such reports as the Commission may require on proprietary and customer positions executed on any board of trade. 6 Lastly, section 4i of the Act requires the filing of such reports as the Commission may require when positions made or obtained on designated contract markets or registered derivatives transaction execution facilities (DTEFs) equal or exceed Commission-set levels. 7 3 7 U.S.C. 1 *et seq.* 4 7 U.S.C. 6a. 5 7 U.S.C. 6c(b). 6 7 U.S.C. 6g. 7 7 U.S.C. 6i.
In addition, CEA section 8a(5) is an enabling provision that grants to the Commission the authority to adopt rules that in its judgment are reasonably necessary to accomplish any of the purposes of the Act. 7 U.S.C. 12a(5). Pursuant to CEA section 3(b), the Act seeks to ensure the financial integrity of regulated transactions and prevent price manipulation and other disruptions to market integrity. 7 U.S.C. 5(b). Together, these purposes warrant the maintenance of an effective and vigorous system of market and financial surveillance.
II. Procedural Background A. The Proposed Rules On December 15, 2005, the Commission published a notice of proposed rulemaking in the **Federal Register** for public comment. 8 In that notice, the Commission proposed new and amended reporting rules that addressed recent market developments and clarified the application of the reporting rules to transactions executed on DTEFs. The Commission received one comment letter from the Chicago Mercantile Exchange (CME). 9 In its comment letter, the CME expressed general support for the Commission's proposed rules.
With two minor exceptions (a technical amendment to Commission rule 37.2 and a revised definition of an exclusively self-cleared contract), the Commission is adopting the new and amended reporting rules as proposed. For this reason, the CME's comments are discussed below in tandem with an overview of the final reporting rules. 8 70 FR 74246. 9 Letter from Craig S. Donohue, Chief Executive Officer, Chicago Mercantile Exchange, to Jean A. Webb, Secretary of the Commission (February 13, 2006)(on file with the Commission), available at *http://www.cftc.gov/foia/comment05/foi05—009_1.htm.* B.
Overview of the Final Reporting Rules and CME Comments The final rules effectuate several substantive changes to the Commission's reporting rules. First, the final rules codify a reporting level for 3-Year U.S. Treasury Note futures and option contracts (3-Year T-Notes). The codification in Commission rule 15.03(b) is in response to a designated contract market's listing of 3-Year T-Notes and the possibility that other designated contract markets will seek to offer 3-Year T-Notes for trading.
Second, the final rules clarify the application of the reporting rules to transactions executed on DTEFs. In the interest of regulatory clarity, the final rules define DTEFs directly into the reporting rules and emphasize the Commission's discretion to exempt DTEFs and their market participants from the reporting rules when necessary and appropriate. In its comment letter, the CME stated that defining DTEFs directly into the reporting rules would “avert any ambiguity regarding” the application of the reporting rules to DTEFs.
The CME remarked that the lack of regulatory ambiguity would discourage attempts to engage in regulatory arbitrage. Third, the final reporting rules amend the public dissemination requirement of Commission rule 16.01. The final reporting rules require designated contract markets to present publicly disseminated market information, when required to do so by rule 16.01, in a format that readily enables the consideration of the data. The final reporting rules also require designated contract markets to publicly disseminate, for each contract, integrated volume data that separately identifies the volume generated from block trades.
In its comment letter, the CME noted that integrated volume data that separately identifies the volume generated from block trades improves the ability of market participants to assess material variables such as a market's liquidity and the utility of contracts as vehicles for hedging and price basing. Lastly, the final rules establish a specific reporting framework for contracts that are exclusively self-cleared. The final rules address certain aspects of the reporting rules that do not comport well with un-intermediated market structures.
The final rules accomplish this by placing the exchange in the regulatory position of large traders with respect to any obligation to report under part 17 of the Commission's regulations. In its comment letter, the CME emphasized the relevance of large trader data to the protection of market integrity. Furthermore, the CME stated that the Commission's reporting framework struck an appropriate balance between relieving technical compliance burdens and requiring the timely submission of vital trading data.
III. Establishing a Contract Reporting for Level 3-Year U.S. Treasury Notes The Commission's reporting rules require FCMs, foreign brokers, and clearing members (collectively reporting firms) to identify and provide daily position reports on customer and proprietary accounts that maintain reportable positions. 10 Positions in commodity futures and option contracts become reportable when they equal or exceed the reporting levels codified in Commission rule 15.03(b). 11 Rule 15.03(b) establishes reporting levels for all contracts that are subject to the Commission's reporting rules.
Rule 15.03(b) applies specified reporting levels to certain contracts and a standard default reporting level of 25 to all other contracts. 12 Since the default contract reporting level is strictly set at 25, its application to some newly listed contracts is (on occasion) inefficient from a regulatory surveillance perspective. 10 *See* 17 CFR part 17. 11 *See* 17 CFR 15.00 and 15.03. The firms that carry accounts that become reportable are required to identify those accounts on Form 102 and report positions in the accounts to the Commission. *See* 17 CFR 17.00 and 17.01.
When necessary, the Commission separately calls upon persons that own or control reportable positions (large traders) to verify and supplement the submitted data in accordance with part 18 of the Commission's regulations. *See* 17 CFR part 18. 12 With respect to liquid contracts, the Commission typically calibrates contract reporting levels to ensure that the aggregate of all positions reported to the Commission represents approximately 70 to 90 percent of the open interest in any given contract.
The Commission analyzes factors such as the terms and conditions of a contract, its trading volume, its level of open interest, its typical open position size, and the Commission's regulatory experience with similar contracts prior to revising or codifying new contract reporting levels in Commission rule 15.03(b). *See* 69 FR 76392, 76393 (December 21, 2004). U.S. Futures Exchange, LLC listed 3-Year T-Notes for trading in January of 2005. As discussed in the proposed rules, rule 15.03(b) did not at that time specify a reporting level for 3-Year T-Notes.
In order to employ regulatory resources more efficiently and lessen any undue burden associated with the obligation to report, staff in the Division of Market Oversight (DMO staff) granted no-action relief to reporting firms and traders holding or controlling positions in 3-Year T-Notes that, for the purpose of complying with the Commission's reporting rules, adhered to a reporting level of 750 contracts instead of the otherwise applicable default reporting level of 25. 13 DMO staff premised its grant of relief primarily on the conclusion that historical trading in 2-Year T-Notes served as precedent for trading in 3-Year T-Notes. 14 Based on the Commission's surveillance experience with 2-Year T-Notes, the liquidity of the securities underlying treasury futures and option contracts, and the securities available for delivery against 3-Year T-Notes, 15 the Commission is herein codifying a reporting level of 750 contracts for 3-Year T-Notes. 13 CFTC Staff Letter 05-03 Comm.
Fut. L. Rep.
(CCH)¶ 30,024 (January 26, 2005). 14 *Id.* The contract reporting level for 2-Year T-Notes is currently 1,000 contracts. 17 CFR 15.03(b). 15 The deliverable supply for the March 2005 3-Year T-Notes had a value of approximately $95 billion. IV. Registered Derivatives Transaction Execution Facilities A. Authority To Subject DTEFs to the Reporting Rules As discussed in the proposed rules, the CEA, as amended by the Commodity Futures Modernization Act of 2000 (CFMA), 16 gives the Commission the statutory authority to subject transactions on DTEFs to the reporting rules. 17 Section 4c(b) of the Act, regardless of the venue of trading, gives the Commission plenary authority to regulate transactions involving commodity options. Sections 4a and 4i of the Act explicitly reference transactions executed on or subject to the rules of DTEFs. Lastly, section 4g of the Act imposes reporting and recordkeeping obligations on registered entities and certain Commission registrants trading on registered entities and boards of trade. The term registered entity is defined by CEA section 1a(29) to include DTEFs. 18 Likewise, section 1a(2) of the Act defines a board of trade to include “any organized exchange or other trading facility.” 19 16 CFMA, Appendix E of Public Law 106-554, 114 Stat. 2763. 17 Although the Commission has received indications of interest from potential DTEF applicants, no board of trade has registered or applied for registration with the Commission as a DTEF. 18 7 U.S.C. 1a(29). 19 7 U.S.C. 1a(2). B. Commission Rule 37.2 In 2001, the Commission adopted a series of DTEF rules in part 37 to effectuate the CFMA. 20 With the exception of a limited grouping of reserved rules, the Commission (in rule 37.2) exempted DTEFs and transactions on DTEFs from all regulations otherwise pertinent to trading facilities. By including parts 15 to 21 in the limited grouping of reserved rules, the Commission, acting pursuant to its statutory authority, unambiguously reserved the applicability of the reporting rules to transactions executed on DTEFs. 21 Although unambiguously reserved, Commission rule 37.2 expressed the applicability of the reporting rules to DTEFs and their market participants through incorporation by reference and without substantial clarity. More specifically, Commission rule 37.2 provided that DTEFs are not, as applicable to the market, exempt from parts 15 to 21, and further provided that parts 15 to 21, when applicable to DTEFs, shall be viewed as though they were set forth in rule 37.2 and included specific reference to DTEFs. 20 66 FR 42256 (August 10, 2001). 21 17 CFR 37.2. At the time Commission rule 37.2 was adopted, the incorporation of the reporting rules by reference was necessary because the expressed provisions of parts 15 to 21, with the exception of Commission rule 15.05, applied only to contract markets and did not mention DTEFs. 22 As part of the Commission's continuing effort to better implement the amendments introduced to the Act by the CFMA, the Commission is herein defining DTEFs directly into rules 15.00 to 15.04 and parts 16 through 21. 23 Defining DTEFs directly into the reporting rules clarifies the application of the rules to transactions executed on DTEFs. The final rules are not designed to alter the pre-existing reporting obligations of DTEFs or their market participants in any way. 22 Commission rule 15.05 relates to the appointment of an agent for service of process for foreign persons. 17 CFR 15.05. Rule 15.05 is self-effectuating and permits the Commission to expeditiously communicate with foreign persons and entities that trade on the domestic commodity exchanges. *See* 45 FR 30426 (May 8, 1980). The rule was amended in 2001 to explicitly apply to designated contract markets and registered derivatives transaction execution facilities. *See* 66 FR 42256 (August 10, 2001). 23 The Commission is also implementing technical amendments to Commission rule 37.2 to reconcile that rule with the new and amended reporting rules. C. Clarification Through the Replacement of Terms The final reporting rules define DTEFs directly into rules 15.00 to 15.04 and throughout the provisions of parts 16 through 21. The final rules accomplish this by replacing the term contract market with the new term reporting market throughout the applicable provisions of the reporting rules. 24 New Commission rule 15.00(m) defines reporting market to mean a designated contract market and, unless determined otherwise by the Commission with respect to some or all of the contracts listed by the facility, a DTEF. 24 More specifically, the Commission is replacing the term contract market with the term reporting market in the rule 15.00 definition of a reportable position, in rules 15.01(a), 16.06, 18.05, and 21.01, and throughout the subparagraphs of rules 16.00, 16.01, 16.07, 17.00, 17.04, 18.00, 21.02, and 21.03. In addition, the Commission is replacing the term contract market with the term reporting market in the heading of part 16, part 17, and the heading of sections 21.02 and 21.03. Other conforming amendments that reconcile existing rules with the replacement of terms are discussed in Section VII of this notice of rulemaking. The language that defines the term reporting market emphasizes the Commission's authority to exempt transactions on DTEFs from the reporting rules when necessary and appropriate. As discussed in the notice of proposed rulemaking, the discretion embedded within the definition of reporting market reconciles the Commission's responsibility to diligently regulate transactions on DTEFs with the Congressional directive to permit DTEFs to operate more flexibly. 25 In determining whether to consider DTEFs reporting markets with respect to particular contracts, the Commission will consider several factors, including a DTEF's surveillance capabilities and the characteristics of the commodities that underlie DTEF transactions. 26 In all cases, the Commission will remain mindful of the operational flexibility granted to DTEFs. 25 In comparison with designated contract markets, DTEFs are required to comply with a less comprehensive set of Core Principles. *Compare* 7 U.S.C. 7(d) (Core Principles for designated contract markets) *with* 7a(d) (Core Principles for DTEFs). In certain respects, DTEFs have greater operational flexibility than designated contract markets. For example, pursuant to section 5(d)(11) of the Act, transactions on designated contract markets, with the exception of security futures products, must be cleared through Commission registered derivatives clearing organizations. *See* 7 U.S.C. 7(d)(11) and guidance on Core Principle 11 in Appendix B to 17 CFR part 38. In contrast, pursuant to section 5a(c)(4) of the Act, transactions on DTEFs may be cleared through clearing organizations other than Commission registered clearing organizations. *See* 7 U.S.C. 7a(c)(4) and guidance on Registration Criterion 4 in Appendix A to 17 CFR part 37. 26 When the Commission adopted rule 37.2 in August of 2001, it specifically determined to defer the extension of routine large trader reporting requirements to DTEF transactions involving Treasury instruments. *See* 66 FR 42256, 42261 (August 10, 2001). When the Commission adopted rule 41.25 in November of 2001, it specifically determined to require part 16 reports from all DTEFs listing security futures products. *See* 66 FR 55078 (November 1, 2001). Under the new and amended reporting rules, the Commission will, without exception, deem such DTEFs to be part 16 reporting markets for security futures products. D. Market Data Commission rule 16.01 requires the submission of market data to the Commission on a daily basis. 27 Amended rule 16.01 requires reporting markets, as opposed to contract markets, to submit directly to the Commission data on trading volume, open interest, futures delivery notices, exchanges of futures, option deltas, prices, and critical dates on a daily basis. Unless the Commission exercises the discretion embedded within the definition of reporting market to determine otherwise, data associated with contracts on DTEFs is data associated with contracts on reporting markets and therefore subject to inclusion in market reports submitted to the Commission. 27 17 CFR 16.01. Commission rule 16.01 also requires the dissemination of market data to the general public. Section 5(d)(8) of the Act requires designated contract markets to disseminate a specific set of market data publicly for all actively traded contracts on a daily basis. 28 In contrast, section 5a(d)(5) of the Act requires DTEFs to publicly disseminate the same market data only for contracts that perform a significant price discovery function for transactions in the cash market for the commodity underlying the contract. 29 Because of the divergent statutory triggers, the Commission believes that designated contract markets and DTEFs should not of necessity be subject to the same public dissemination requirement. Therefore, amended rule 16.01 only requires designated contract markets, as opposed to reporting markets, to publicly disseminate data on trading volume, open interest, futures delivery notices, exchanges of futures, option deltas, and prices on a daily basis. 28 7 U.S.C. 7(d)(8). 29 *Compare* 7 U.S.C. 7(d)(8) (designated contract market Core Principle 8), *with* 7 U.S.C. 7a(d)(5) (DTEF Core Principle 5). The language triggering the DTEF public dissemination requirement is similar to the language triggering the same requirement for exempt boards of trade (7 U.S.C. 7a-3(d)) and exempt commercial markets (7 U.S.C. 2(h)(4)(D)). Aside from the requirement to comply with minimal notice and reporting obligations, exempt boards of trade and exempt commercial markets are generally not subject to Commission oversight. *See* 17 CFR part 36. As discussed above, section 5a(d)(5) of the Act requires DTEFs to publicly disseminate a specific set of market data for contracts that perform a significant price discovery function for transactions in the cash market for the commodity underlying the contract. 30 Since amended rule 16.01 exempts DTEFs from its public dissemination requirement, the public dissemination requirement for DTEF transactions will be set by section 5a(d)(5) of the Act and implemented pursuant to any regulations adopted thereunder. 31 New paragraph
(e)of rule 16.01 emphasizes this by clarifying that DTEFs, although exempt from the public dissemination requirement of Commission rule 16.01, must nonetheless comply with section 5a(d)(5) of the Act and any regulation adopted thereunder. 30 30 The Commission recently applied to DTEFs and exempt boards of trade the same standard that currently applies to exempt commercial markets for determining whether a contract performs a significant price discovery function for transactions in the cash market for an underlying commodity. 71 FR 1953, 1958 (January 12, 2006). More specifically, in making such a determination with respect to DTEFs and exempt boards of trades, the Commission will consider
(1)whether cash market bids, offers or transactions are directly based on, or quoted at a differential to, the prices generated on the market on a more than occasional basis; or
(2)whether market prices are routinely disseminated in a widely distributed industry publication and are routinely consulted by industry participants in pricing cash market transactions. *Id.* 31 *See* Commission guidance on DTEF Core Principle 5 in Appendix B to part 37 of the Commission's regulations. 17 CFR part 37 Appendix B. V. Block Trade Volume and the Publication of Market Data The passage of the CFMA facilitated the availability of transactions, including block trades, that are subject to the rules of an exchange, but lawfully negotiated and executed away from the centralized marketplace. 32 Block trades are typically subject to exchange rules that establish minimum size thresholds, participant eligibility requirements, pricing limits, and trade reporting parameters. 33 It is generally believed that market participants trade within the constraints established by block trade rules to counter potential price and execution risks associated with the execution of larger sized orders in a centralized market. 32 For example, the CFMA specifically permitted designated contract markets to establish trading rules that authorize the exchange of futures for swaps, or allow a futures commission merchant, acting as principal or agent, to enter into or confirm the execution of a contract for the purchase or sale of a commodity for future delivery if the contract is reported, recorded, or cleared in accordance with the rules of a designated contract market or DTEF. *See* 7 U.S.C. 7(b)(3). 33 *See* 69 FR 39880, 39882 (July 1, 2004). Commission rule 1.38(b) currently requires designated contract markets to separately identify and mark all block trades and other off-centralized market transactions. 34 In December of 2004, the Commission recognized the growing importance and use of off-centralized market transactions by adopting final rules that required designated contract markets to separately identify, report, and publish for each contract the volume generated from exchanges of futures for commodities or for derivatives positions. 35 To more comprehensively recognize the growing importance and use of off-centralized market transactions, the Commission is now amending rule 16.01 to require designated contract markets to record and make readily available to the news media and the general public, as part of the total mix of market data publicly disseminated for each contract pursuant to rule 16.01, the volume generated from block trades. 34 17 CFR 1.38(b). 35 69 FR 76392, 76394 (December 21, 2004). As indicated in the proposed rules, several designated contract markets do disseminate public reports that separately account for the volume generated from block trades. 36 The final amendments to rule 16.01 codify this industry practice, and require all designated contract markets to record the volume generated from block trades for each contract, and make that information readily available to the news media and the general public as a part of the total mix of market data publicly disseminated daily pursuant to rule 16.01. 37 However, final rule 16.01 does not separately require designated contract markets to submit a contract's block trade volume on a daily basis to the Commission. The Commission has assessed the cost of integrating separate block trade volume data into its information systems and has determined that cost to be considerable. The Commission will therefore independently derive and compile such data as necessary to fulfill its market and financial surveillance responsibilities. 36 For example, the Chicago Board of Trade publicly disseminates daily block trade volume data for eligible contracts in a category of volume termed Wholesale Trades. *See* CBOT Delayed Charts, *available at http://cbt.com/cbot/pub/page/0,3181,801,00.html* . The CME also disseminates daily volume data through its Web site that separately accounts for the volume generated from block trades. 37 As previously discussed, the final rules do not subject DTEFs to the public dissemination requirement of rule 16.01. The Commission believes that designated contract markets must generally satisfy their obligation to publicly disseminate market data on a daily basis by making such information readily available to the news media and the general public through the internet and on web pages that are conveniently accessed and easily navigable. Final rule 16.01(e), through two additional requirements, emphasizes the obligation to disseminate market data in a manner that is both useful and accessible. First, final rule 16.01(e) specifically requires designated contract markets to publish integrated volume data for each contract. Second, final rule 16.01(e) requires designated contract markets to present market data in a format that readily enables members of the news media and the general public to consider the data. The publication of a contract's total volume of trading, alongside the volume generated from exchanges of futures and block trades, will enhance the ability of market participants and the general public to effectively analyze the determinants of market prices, the depth of market liquidity, and the utility of contracts as hedging and pricing tools. The expressed requirement to present market data in a format that readily enables members of the news media and the general public to consider the data will make designated contract markets fully aware of their present obligation to publicly disseminate market data in a format that is readily accessible and user friendly. VI. Exclusively Self-Cleared Contracts A. Market Structure In February of 2004, the Commission designated HedgeStreet, Inc. (HedgeStreet or Exchange) as a contract market pursuant to sections 5 and 6(a) of the Act. 38 HedgeStreet initially offered, and continues to offer, small sized contracts to retail traders in a market structure that is substantially different from the structure of other active designated contract markets. 39 For example, HedgeStreet offers small sized and fully collateralized European style binary options on various commodities in a market structure that permits no intermediary to handle the orders or funds of traders. 40 38 7 U.S.C. 7 and 8(a); Order of Designation as a Contract Market (February 18, 2004). 39 *See* Order of Registration as a Derivatives Clearing Organization (February 18, 2004); *see also* Staff Designation Memorandum from the Division of Market Oversight (Staff Memorandum) at 47 (February 10, 2004). 40 Staff Memorandum at 29. In December of 2005, the Commission amended HedgeStreet's Order of Designation to permit the Exchange to offer larger sized contracts that could be cleared by members of The Clearing Corporation. *See* HedgeStreet's Amended Order of Designation as a Contract Market, paragraph B (December 5, 2005) (on file with the Commission), *available at http://www.cftc.gov/dea/deahedgestreet_submissions_comments.htm.* As discussed in the proposed rules and in more detail in the subsections below, market structures without clearing intermediation, in certain respects, do not comport well with the reporting rules. The reporting rules were designed to collect information from markets that hosted a select group of well-capitalized clearing intermediaries with direct access to the exchange. 41 The Commission is therefore establishing an alternative reporting framework for contracts that are cleared only by traders to rectify this inconsistency. For ease of reference, the term exclusively self-cleared contract is used herein to refer to such contracts, and defined by new Commission rule 15.00(f) to mean a contract for which no person, other than a reporting market and its clearing organization, is permitted to accept any money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trade. 41 *See* 17 CFR parts 16 to 18. In its prior notice of rulemaking, the Commission proposed to define the term exclusively self-cleared contract as a contract that did not involve an intermediary's handling of customer funds. 42 Final Commission rule 15.00(f), however, adopts a narrowly worded definition that focuses only on the absence of certain intermediaries. More specifically, the definition hinges on the absence of clearing intermediaries that accept collateral or extend credit in lieu thereof to secure trades. The final definition clarifies that the presence of executing intermediaries will have no bearing on whether a contract comes within the regulatory definition of an exclusively self-cleared contract. 43 42 *See* Proposed Commission rule 15.00(f), 70 FR 74246, 74254 (December 15, 2005). 43 The definition of the term exclusively self-cleared contract is devised for use in parts 15 through 21 only and is not meant to give meaning to the terms intermediary, intermediation, principle-to-principle trading, or trading for one's own account (or any variant of those terms) in any way as used by the Commission, in the Act, or in Commission regulations promulgated under the Act. B. Commission Rules 17.00 and 17.01 and Exclusively Self-Cleared Contracts Pursuant to Commission rule 17.00, FCMs, foreign brokers, and clearing members file daily reports with the Commission particularizing futures and option positions when the accounts that they carry acquire positions that are at or above the contract reporting levels delineated in rule 15.03(b). 44 An FCM, by definition, is a person that accepts the property of customers to “margin, guarantee, or secure” customer trades. 45 Likewise, a foreign broker is a person located outside the United States or its territories “who carries an account” for any other person. 46 With respect to transactions in exclusively self-cleared contracts, there are no intermediaries that secure customer trades or carry customer accounts and therefore, there are no FCMs or foreign brokers with reporting obligations under part 17 of the Commission's regulations. In contrast, the term clearing member is defined by Commission rule 1.3(c) to include “any person who is a member of, or enjoys the privileges of clearing trades in his own name through, the clearing organization of a contract market.” 47 As a result, all traders of exclusively self-cleared contracts squarely fit within the regulatory definition of a clearing member, and consequently, can have routine reporting obligations under part 17 of the Commission's regulations. 44 *See* 17 CFR 15.00, 15.03 and 17.00. 45 7 U.S.C. 1a(20). 46 17 CFR 15.00. 47 17 CFR 1.3(h). The Commission is amending the regulatory definition of a clearing member in rule 1.3 to explicitly extend the definition to members of DTEFs. As mentioned previously, the reporting rules were not designed to impose routine position and identifying reporting obligations on traders. 48 In 1981, the Commission explicitly disposed of routine trader reporting obligations in order to “substantially decrease certain paperwork burdens on large traders and on the Commission itself.” 49 Instead, the Commission looked to intermediaries and well capitalized clearing members to “facilitate the Commission's market surveillance efforts” in the absence of routine trader reporting. 50 Since 1981, the design of the reporting rules has been to place the burden of reporting large position and identifying data in the first instance on market intermediaries and well capitalized persons that clear customer or proprietary positions. 51 48 *See* 17 CFR parts 16 to 18. 49 46 FR 59960 (December 8, 1981). 50 *Id* . 51 *See Id* . Intermediaries and clearing members typically are Commission registrants with vigorous internal controls, substantial resources, and extensive experience with regulatory compliance. With respect to exclusively self-cleared contracts, and in particular with respect to retail oriented exclusively self-cleared contracts, traders in general may not have the requisite resources or regulatory experience to comply with part 17 of the Commission's regulations. In order to not place any daily reporting burden on traders, the Commission is herein adopting final rules that place reporting markets in the regulatory position of market participants that trade in exclusively self-cleared contracts. 52 As discussed above, all traders in exclusively self-cleared contracts are effectively clearing members. Pursuant to the final reporting rules, reporting markets, a term which includes designated contract markets and DTEFs, with respect to exclusively self-cleared contracts, are obligated to submit reportable position and identifying data on behalf of all traders. 53 52 The Commission, through an order, applied this reporting framework to HedgeStreet. *See* Order of Designation as a Contract Market, paragraph 5 (February 18, 2004). 53 The reporting framework for exclusively self-cleared contracts is narrowly tailored to be contract specific. In other words, a reporting market may list both exclusively self-cleared and other contracts. The alternative reporting approach, however, would only apply to exclusively self-cleared contracts. The Commission believes that this is a desirable result since reporting markets, by virtue of their regulated status, substantial resources, internal controls, and lines of communication with the Commission, are better able to submit position and identifying data to the Commission on a daily basis. 54 Therefore, under final Commission rules 17.00(i) and 17.01(h), reporting markets listing exclusively self-cleared contracts must, unless determined otherwise by the Commission, provide the data required by Commission rules 17.00(a) through
(h)and 17.01(a) through (g), to the Commission on behalf of all market participants trading in exclusively self-cleared contracts. Individual traders remain subject to the special call provisions of part 18 of the Commission's regulations. 54 The Commission may, at some future date, consider amending the reporting obligations of clearing members with respect to contracts with low notional values that are not exclusively self-cleared. The Commission would consider amending these reporting obligations when retail market participants that self-clear are responsible for a substantial proportion of a contract's trading volume. C. Clearing Member Reports Designated contract markets, on a daily basis, report each clearing member's open long and short positions, purchases and sales, exchanges of futures, and futures delivery notices. 55 The data is reported separately by proprietary and customer accounts by futures month and, for options, by puts and calls by expiration date and strike price. 56 As previously discussed, all traders holding positions in exclusively self-cleared contracts on reporting markets are clearing members. In the absence of regulatory action, reporting markets listing such contracts would be required by Commission rule 16.00(a) to submit position data for every single trader on a daily basis regardless of the number of contracts that individual traders hold. 55 17 CFR 16.00(a). 56 *Id* . The Commission generally believes that the submission of voluminous and disaggregated clearing member reports for transactions in exclusively self-cleared contracts can place an undue burden on reporting markets without substantially furthering the Commission's market or financial surveillance efforts. The Commission typically uses clearing member reports to spot account aggregation issues and audit the filings of reporting firms. The submission of clearing member reports for every trader that takes a position in an exclusively self-cleared contract will not typically facilitate the Commission's aggregation of large positions. For exclusively self-cleared contracts, issuing appropriately worded special calls directly to traders under part 18 of the Commission's regulations will better facilitate the Commission's analysis of potential aggregation issues. Furthermore, since clearing member and large trader reports for exclusively self-cleared contracts (in the absence of regulatory action) would be submitted by the same person, clearing member reports for exclusively self-cleared contracts would not typically facilitate the Commission's review of large trader reports. Based upon the foregoing, final rule 16.00 does not by default require clearing member reports for contracts that are exclusively self-cleared. VII. Conforming, Clarifying and Technical Amendments The Commission is amending several other provisions to reconcile them with the substantive rules adopted herein, to update and better organize the layout of the reporting rules, and to correct certain non-substantive errors. These amendments are categorized below by their respective parts. A. Part 1 of the Commission's Regulations Prior Commission rule 1.3(c) defined clearing member in terms of a member of a contract market. Prior Commission rule 1.3(d) defined a clearing organization in terms of an entity associated with a contract market. In conformity with the intent of this notice of final rulemaking, the Commission is amending rules 1.3(c) and 1.3(d) to make specific reference to DTEFs. B. Part 15 of the Commission's Regulations The Commission is further amending rule 15.00, the definitional section for parts 15 through 21, to present the definitions contained in that section alphabetically. The Commission is also re-ordering the contract reporting levels and categories delineated in rule 15.03(b), for certain reporting levels and categories, in alphabetical order. The Commission is amending final paragraph
(a)of rule 15.05 to clarify that the provisions of that rule apply to all regulated transactions executed on or subject to the rules of DTEFs. 57 Since the thrust of rule 15.05 relates to the appointment of an agent for service of process on foreign brokers and foreign customers, the term foreign broker is amended by final rule 15.00(g) to explicitly extend to transactions on DTEFs. 57 *See* note 22, *supra.* Commission rule 15.01 provides a list of persons that may be required to report pursuant to parts 15 through 21 of the Commission's regulations. Final paragraph
(a)of rule 15.01 clarifies that both designated contract markets, and when applicable DTEFs, are required to provide reports to the Commission pursuant to part 16, and that pursuant to this final notice of rulemaking, reporting markets may be required to provide reports under part 17 if they list exclusively self-cleared contracts. Final paragraph
(b)of rule 15.01 clarifies that part 17 applies to all clearing members and that part 21 may require reports from introducing brokers and traders in addition to FCMs, clearing members, and foreign brokers. Final paragraph
(b)of rule 15.01 deletes the reference to part 20 since that part remains reserved and contains no operative provisions. C. Part 16 of the Commission's Regulations The prior heading to part 16 only referenced contract markets. The final heading to part 16 specifically refers to reporting markets. Prior rule 16.07(b) incorrectly referenced rule 16.00(d)(1) as a provision that gives the Commission the authority to approve the form and manner of filing reports with the Commission. The correct reference, as provided in final rule 16.07(b), is to Commission rule 16.01(d)(1). Paragraph
(a)of prior rule 16.01 referred to the total quantity of futures exchanged for commodities or for derivatives positions. Since exchanges of futures generate trading volume, final rule 16.01(a)(5) now refers to the total volume of futures exchanged for commodities or for derivatives positions. D. Part 17 of the Commission's Regulations The Commission is conforming the capitalization format of rule 17.00(b)(2) and 17.00(g)(2)(iv) with the format used in the other paragraphs of rule 17.00. The Commission is capitalizing the word form when used to refer to Form 102 throughout the provisions of rules 17.01, 17.02, and 17.03. Final rule 17.01(f) clarifies that Form 102 is alternately referred to as a report. Final rules 17.01(a), 17.01(b), and 17.01(d) provide the appropriate italicization format for each rule's introductory phrase. The final heading to part 17 and rule 17.02 reflect the possibility that under the alternative reporting approach for exclusively self-cleared contracts, reporting markets may be required to file reports with the Commission on behalf of their clearing members. Final rule 17.01(a) also replaces the second instance of the term identifier with the term designator. Lastly, the Commission is amending the introductory text of rule 17.03 to correctly refer to paragraph
(d)of that section. E. Part 19 of the Commission's Regulations As a result of the alphabetization of definitions, the Commission is amending paragraph
(a)of rule 19.00 to correctly refer to the re-ordered sections defining the term reportable position in rule 15.00. A final amendment to rule 19.00(b) correctly refers to rule 19.01 instead of rule 19.10, which is inoperative and reserved. Lastly, final paragraph
(a)of rule 19.01 capitalizes the word form when used to refer to Form 204. F. Part 21 of the Commission's Regulations A final amendment to Commission rule 21.01, which was last updated in 1983, extends the rule's requirement that each FCM and introducing broker file with the Commission upon special call the names and addresses of all persons who exercise trading control over a customer's account in commodity futures to all persons who also exercise trading control over a customer's account in commodity options. An amendment to paragraph
(d)of rule 21.03 replaces the phrase “by telex or a similarly expeditious means of communication” with the phrase “by email or a similarly expeditious means of communication.” G. Part 37 The limited grouping of reserved rules in rule 37.2 is amended to indicate that the final rules define DTEFs directly into parts 15 through 21 of the Commission's regulations. VIII. Related Matters A. Cost Benefit Analysis Section 15(a) of the Act requires the Commission to consider the costs and benefits of its actions before issuing new regulations under the Act. By its terms, section 15(a) does not require the Commission to quantify the costs and benefits of new regulations or to determine whether the benefits of the proposed regulations outweigh their costs. Rather, section 15(a) requires the Commission to “consider the cost and benefits” of the subject rules. As discussed in the notice of proposed rulemaking, the new and amended reporting rules tend to reduce the aggregate burden associated with the reporting requirements of parts 15 through 21 of the Commissions regulations. 58 The reporting level of 750 contracts for 3-Year T-Notes, for example, is significantly higher than the default reporting level that would be applicable in the absence of regulatory action. Contract reporting levels trigger reporting obligations that permit the Commission to be aware of significant positions that may affect the integrity and efficiency of the commodity derivatives markets. The information collected develops the Commission's understanding of market power, and gives the Commission the opportunity to prevent the occurrence, and contain the effects, of financial disturbances. Based upon the Commission's surveillance experience with 2-Year T-Notes, the liquidity of the securities underlying treasury futures and option contracts, and the securities available for delivery against 3-Year T-Notes, the Commission believes that a reporting level of 750 contracts will allow it to adequately protect market participants and the integrity of regulated markets, while limiting the regulatory burden of reporting. 58 70 FR 74246, 74251. With respect to transactions executed on or subject to the rules of DTEFs, the new and amended reporting rules merely clarify the reporting obligations of registered entities, intermediaries, and traders and are not designed to alter their pre-existing reporting obligations. The prior language of Commission rule 37.2 reserved the applicability of parts 15 to 21 to DTEFs, but did so through incorporation by reference and without clarity. As part of the Commission's continuing effort to better implement the amendments introduced to the Act by the CFMA, the new and amended reporting rules define DTEFs directly into rules 15.00 to 15.04 and parts 16 through 21 of the Commission's regulations. The Commission believes that the new and amended reporting rules will serve the public's interest by enhancing regulatory clarity. The final amendments to Commission rule 16.01 relating to block trades and contract volume recognize the growing importance and use of off-centralized market transactions. The new and amended reporting rules require all reporting markets to record the volume generated from block trades for each contract, and require designated contract markets to make that information readily available to the news media and the general public. In order to emphasize the obligation to disseminate market data in a manner that is both useful and accessible, the new and amended reporting rules require designated contract markets to publish integrated volume data, and present all market data in a format that would readily enable members of the news media and the general public to consider the data. The Commission believes that the format requirement will ensure that designated contract markets are fully aware of their present obligation to publicly disseminate market data in a user friendly manner. In addition, the integrated publication of volume, along with the public dissemination of block trade volume data, will benefit market participants and the general public by facilitating their ability to effectively analyze the key determinants of prices and market depth. The new and amended reporting rules also establish a distinct reporting framework for exclusively self-cleared contracts. The new and amended reporting rules protect market participants and strengthen the financial integrity of the regulated markets by shifting the reporting responsibilities of traders onto reporting markets that are able to comply with routine reporting obligations. The reporting rules, prior to their amendment by this notice of rulemaking, were designed to collect information from heavily intermediated markets that permitted un-intermediated trading and clearing access only to well capitalized members. Intermediaries and clearing members typically are Commission registrants with vigorous internal controls, substantial resources, and extensive experience with regulatory compliance. Traders of exclusively self-cleared contracts, and in particular traders of retail oriented exclusively self-cleared contracts, do not in general have the resources or regulatory experience to comply with routine large trader reporting obligations. In the absence of Commission action, reporting obligations for exclusively self-cleared contracts would be placed on individual traders that do not have the ability to comply with technical requirements. The Commission's new and amended reporting rules address this deficiency and ensure that the Commission will receive the trading data it needs to protect market participants, the public, and the integrity of registered entities. The Commission's notice of proposed rulemaking analyzed the aforementioned costs and benefits and solicited comment thereon. 59 No relevant comments were received with respect to the Commission's analysis. After considering these factors, the Commission has determined to amend parts 15, 16, 17, 18, 19, 21, and 37 as set forth below. 59 *Id.* B. The Regulatory Flexibility Act The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 *et seq.* , requires that agencies consider the impact of their rules on small businesses. The Commission has previously determined that exchanges, futures commission merchants and large traders are not “small entities” for the purposes of the RFA. 60 The requirements related to the new and amended reporting rules fall mainly on exchanges and FCMs. Similarly, foreign brokers and traders report only if holding large positions. In addition, the new and amended reporting rules tend to relieve regulatory burdens. Accordingly, the Chairman, on behalf of the Commission, hereby certifies, pursuant to 5 U.S.C. 605(b), that the actions adopted herein will not have a significant economic impact on a substantial number of small entities. 60 47 FR 18618 (April 30, 1982). C. The Paperwork Reduction Act When publicizing notices of rulemaking, the Paperwork Reduction Act
(PRA)61 imposes certain requirements on Federal agencies, including the Commission, in connection with conducting or sponsoring any collection of information as defined by the PRA. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. The revision of collections of information contained in this final notice of rulemaking have been reviewed and approved by the Office of Management and Budget pursuant to the PRA, under control numbers 3038-0009 and 3038-0012. In the notice of proposed rulemaking, the Commission estimated the paperwork burden that would be imposed by these rules and solicited comments on the estimates. The Commission received no relevant comments. 62 The Commission continually invites comment on the accuracy of burden estimates and suggestions on how to further reduce these burdens. Comments should be directed to Gary Martinaitis, Associate Deputy Director for Market Information, Market Surveillance Section, Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581 (telephone 202-418-5209, e-mail *gmartinaitis@cftc.gov* ). 61 Public Law 104-13 (May 13, 1995). 62 70 FR 74246, 74253. List of Subjects 17 CFR Part 1 Brokers, Commodities futures, Consumer protection, Reporting and recordkeeping requirements. 17 CFR Part 15 Brokers, Commodity futures, Reporting and recordkeeping requirements. 17 CFR Part 16 Commodity futures, Reporting and recordkeeping requirements. 17 CFR Part 17 Commodity futures, Reporting and recordkeeping requirements. 17 CFR Part 18 Commodity futures, Reporting and recordkeeping requirements. 17 CFR Part 19 Brokers, Commodity futures, Reporting and recordkeeping requirements. 17 CFR Part 21 Brokers, Commodity futures, Reporting and recordkeeping requirements. 17 CFR Part 37 Commodity futures, Reporting and recordkeeping requirements. In consideration of the foregoing, and pursuant to the authority contained in the Act, and, in particular, sections 4a, 4c, 4g, 4i, 5, 5a and 8a of the Act, the Commission hereby amends Chapter I of Title 17 of the Code of Federal Regulations as follows: PART 1—GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT 1. The authority citation for part 1 continues to read as follows: Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6j, 6k, 6l, 6m, 6n, 6o, 6p, 7, 7a, 7b, 8, 9, 12, 12a, 12c, 13a, 13a-1, 16, 16a, 19, 21, 23, and 24, as amended by the Commodity Futures Modernization Act of 2000, Appendix E of Public Law 106-554, 114 Stat. 2763 (2000). 2. Revise paragraphs
(c)and
(d)of § 1.3 to read as follows: § 1.3 Definitions
(c)*Clearing member.* This term means any person who is a member of, or enjoys the privilege of clearing trades in his own name through, the clearing organization of a designated contract market or registered derivatives transaction execution facility.
(d)*Clearing organization.* This term means the person or organization which acts as a medium for clearing transactions in commodities for future delivery or commodity option transactions, or for effecting settlements of contracts for future delivery or commodity option transactions, for and between members of any designated contract market or registered derivatives transaction execution facility. PART 15—REPORTS—GENERAL PROVISIONS 3. The authority citation for part 15 continues to read as follows: Authority: 7 U.S.C. 2, 5, 6, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 7, 7a, 9, 12a, 19 and 21, as amended by the Commodity Futures Modernization Act of 2000, Appendix E of Pub. L. 106-554, 114 Stat. 2763 (2000); 5 U.S.C. 552 and 552(b). 4. Revise § 15.00 to read as follows: § 15.00 Definitions of terms used in parts 15 to 21 of this chapter. As used in parts 15 to 21 of this chapter:
(a)*Cash or Spot,* when used in connection with any commodity, means the actual commodity as distinguished from a futures or option contract in such commodity.
(b)*Compatible data processing media* means data processing media approved by the Commission or its designee. The Commission hereby delegates, until the Commission orders otherwise, the authority to approve data processing media for data submissions to the Executive Director to be exercised by such Director or by such other employee or employees of such Director as designated from time to time by the Director. The Executive Director may submit to the Commission for its consideration any matter which has been delegated in this paragraph. Nothing in this paragraph prohibits the Commission, at its election, from exercising the authority delegated in this paragraph.
(c)*Customer* means “customer” (as defined in § 1.3(k)) and “option customer” (as defined in § 1.3(jj)).
(d)*Customer trading program* means any system of trading offered, sponsored, promoted, managed or in any other way supported by, or affiliated with, a futures commission merchant, an introducing broker, a commodity trading advisor, a commodity pool operator, or other trader, or any of its officers, partners or employees, and which by agreement, recommendations, advice or otherwise, directly or indirectly controls trading done and positions held by any other person. The term includes, but is not limited to, arrangements where a program participant enters into an expressed or implied agreement not obtained from other customers and makes a minimum deposit in excess of that required of other customers for the purpose of receiving specific advice or recommendations which are not made available to other customers. The term includes any program which is of the character of, or is commonly known to the trade as, a managed account, guided account, discretionary account, commodity pool or partnership account.
(e)*Discretionary account* means a commodity futures or commodity option trading account for which buying or selling orders can be placed or originated, or for which transactions can be effected, under a general authorization and without the specific consent of the customer, whether the general authorization for such orders or transactions is pursuant to a written agreement, power of attorney, or otherwise.
(f)*Exclusively self-cleared contract* means a contract for which no persons, other than a reporting market and its clearing organization, are permitted to accept any money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trade.
(g)*Foreign broker* means any person located outside the United States or its territories that carries an account in commodity futures or commodity options on any designated contract market or registered derivatives transaction execution facility for any other person.
(h)*Foreign trader* means any trader (as defined in paragraph
(o)of this section) who resides or is domiciled outside of the United States, its territories or possessions.
(i)*Guided account program* means any customer trading program which limits trading to the purchase or sale of a particular contract for future delivery of a commodity or a particular commodity option that is advised or recommended to the participant in the program.
(j)*Managed Account Program* means a customer trading program which includes two or more discretionary accounts traded pursuant to a common plan, advice or recommendations.
(k)*Open contracts* means “open contracts” (as defined in § 1.3(t)) and commodity option positions held by any person on or subject to the rules of a designated contract market or registered derivatives transaction execution facility which have not expired, been exercised, or offset.
(l)*Reportable position* means:
(1)For reports specified in parts 17, 18 and § 19.00(a)(2) and (a)(3) of this chapter any open contract position that at the close of the market on any business day equals or exceeds the quantity specified in § 15.03 of this part in either:
(i)Any one future of any commodity on any one reporting market, excluding future contracts against which notices of delivery have been stopped by a trader or issued by the clearing organization of a reporting market; or
(ii)Long or short put or call options that exercise into the same future of any commodity, or long or short put or call options for options on physicals that have identical expirations and exercise into the same physical, on any one reporting market.
(2)For the purposes of reports specified in § 19.00(a)(1) of this chapter, any combined futures and futures-equivalent option open contract position as defined in part 150 of this chapter in any one month or in all months combined, either net long or net short in any commodity on any one reporting market, excluding futures positions against which notices of delivery have been stopped by a trader or issued by the clearing organization of a reporting market, which at the close of the market on the last business day of the week exceeds the net quantity limit in spot, single or in all-months fixed in § 150.2 of this chapter for the particular commodity and reporting market.
(m)*Reporting market* means a designated contract market and, unless determined otherwise by the Commission with respect to the facility or a specific contract listed by the facility, a registered derivatives transaction execution facility.
(n)*Special account* means any commodity futures or option account in which there is a reportable position.
(o)*Trader* means a person who, for his own account or for an account which he controls, makes transactions in commodity futures or options, or has such transactions made. 5. Revise paragraphs
(a)and
(b)in § 15.01 to read as follows: § 15.01 Persons required to report.
(a)Reporting markets—as specified in part 16, 17, and 21 of this chapter.
(b)Futures commission merchants, clearing members, foreign brokers, introducing brokers, and traders—as specified in parts 17 and 21 of this chapter. 6. Revise paragraph
(b)in § 15.03 to read as follows: § 15.03 Reporting levels.
(b)The quantities for the purpose of reports filed under parts 17 and 18 of this chapter are as follows: Commodity Number of contracts Agricultural: Cocoa 100 Coffee 50 Corn 250 Cotton 100 Feeder Cattle 50 Frozen Concentrated Orange Juice 50 Lean Hogs 100 Live Cattle 100 Milk, Class III 50 Oats 60 Rough Rice 50 Soybeans 150 Soybean Meal 200 Soybean Oil 200 Sugar No. 11 500 Sugar No. 14 100 Wheat 150 Broad-Based Security Indexes: Municipal Bond Index 300 S&P 500 Stock Price Index 1,000 Other Broad-Based Securities Indexes 200 Financial: 30-Day Fed Funds 600 3-Month (13-Week) U.S. Treasury Bills 150 2-Year U.S. Treasury Notes 1,000 3-Year U.S. Treasury Notes 750 5-Year U.S. Treasury Notes 2,000 10-Year U.S. Treasury Notes 2,000 30-Year U.S. Treasury Bonds 1,500 1-Month LIBOR Rates 600 3-Month Eurodollar Time Deposit Rates 3,000 3-Month Euroyen 100 2-Year German Federal Government Debt 500 5-Year German Federal Government Debt 800 10-Year German Federal Government Debt 1,000 Goldman Sachs Commodity Index 100 Major Foreign Currencies 400 Other Foreign Currencies 100 U.S. Dollar Index 50 Natural Resources: Copper 100 Crude Oil, Sweet 350 Crude Oil, Sweet—No. 2 Heating Oil Crack Spread 250 Crude Oil, Sweet—Unleaded Gasoline Crack Spread 150 Gold 200 Natural Gas 200 No. 2 Heating Oil 250 Platinum 50 Silver Bullion 150 Unleaded Gasoline 150 Unleaded Gasoline—No. 2 Heating Oil Spread Swap 150 Security Futures Products: Individual Equity Security 1,000 Narrow-Based Security Index 200 Hedge Street Products 1 125,000 TRAKRS 1 50,000 All Other Commodities 25 1 For purposes of part 17, positions in HedgeStreet Products and TRAKRS should be reported by rounding down to the nearest 1,000 contracts and dividing by 1,000. 7. Revise paragraphs
(a)and
(h)in § 15.05 to read as follows: § 15.05 Designation of agent for foreign brokers, customers of a foreign broker and foreign traders.
(a)For purposes of this section, the term “futures contract” means any contract for the purchase or sale of any commodity for future delivery traded or executed on or subject to the rules of any designated contract market or registered derivatives transaction execution facility; the term “option contract” means any contract for the purchase or sale of a commodity option, or as applicable, any other instrument subject to the Act pursuant to section 5a(g) of the Act, traded or executed on or subject to the rules of any designated contract market or registered derivatives transaction execution facility; the term “customer” means any person for whose benefit a foreign broker makes or causes to be made any futures contract or option contract; and the term “communication” means any summons, complaint, order, subpoena, special call, request for information, or notice, as well as any other written document or correspondence.
(h)The provisions of paragraphs (e),
(f)and
(g)of this section shall not apply to a designated contract market or registered derivatives transaction execution facility on which all transactions of foreign brokers, their customers or foreign traders in futures or option contracts are executed through, or the resulting transactions are maintained in, accounts carried by a registered futures commission merchant or introduced by a registered introducing broker subject to the provisions of paragraphs (a), (b),
(c)and
(d)of this section. PART 16—REPORTS BY REPORTING MARKETS 8. Revise the heading of part 16 as set forth above. 9. The authority citation for part 16 is revised to read as follows: Authority: 7 U.S.C. 6a, 6c, 6g, 6i, 7, 7a and 12a, unless otherwise noted. 10. In § 16.00, revise paragraphs
(a)introductory text, (a)(1), (a)(5), and
(b)introductory text; and add paragraph
(c)to read as follows: § 16.00 Clearing member reports.
(a)*Information to be provided.* Each reporting market shall submit to the Commission, in accordance with paragraph
(b)of this section, a report for each business day, showing for each clearing member, by proprietary and customer account, the following information separately for futures by commodity and by future, and, for options, by underlying futures contract for options on futures contracts or by underlying physical for options on physicals, and by put, by call, by expiration date and by strike price:
(1)The total of all long open contracts and the total of all short open contracts carried at the end of the day covered by the report, excluding from open futures contracts the number of contracts against which delivery notices have been stopped or against which delivery notices have been issued by the clearing organization of the reporting market;
(5)For futures, the quantity of the commodity for which delivery notices have been issued by the clearing organization of the reporting market and the quantity for which notices have been stopped during the day covered by the report.
(b)*Form, manner and time of filing reports.* Unless otherwise approved by the Commission or its designee, reporting markets shall submit the information required by paragraph
(a)of this section as follows:
(c)*Exclusively self-cleared contracts.* Unless determined otherwise by the Commission, paragraph
(a)of this section shall not apply to transactions involving exclusively self-cleared contracts. 11. In § 16.01 revise paragraphs (a), (b), (c), and
(d)introductory text; and delete the Note to paragraph (a); and add paragraph
(e)to read as follows: § 16.01 Trading volume, open contracts, prices, and critical dates.
(a)*Trading volume and open contracts.* Each reporting market shall record for each business day the following information separately for futures by commodity and by future, and, for options, by underlying futures contract for options on futures contracts or by underlying physical for options on physicals, and by put, by call, by expiration date and by strike price:
(1)The option delta, where a delta system is used;
(2)The total gross open contracts, excluding from futures those contracts against which notices have been stopped;
(3)For futures, open contracts against which delivery notices have been stopped on that business day;
(4)The total volume of trading, excluding transfer trades or office trades;
(5)The total volume of futures exchanged for commodities or for derivatives positions which are included in the total volume of trading;
(6)The total volume of block trades which are included in the total volume of trading.
(b)*Prices.* Each reporting market shall record the following information separately for futures, by commodity and by future, and, for options, by underlying futures contract for options on futures contracts or by underlying physical for options on physicals, and by put, by call, by expiration date and by strike price:
(1)For the trading session and for the opening and closing periods of trading as determined by each reporting market:
(i)The lowest price of a sale or offer, whichever is lower, and the highest price of a sale or bid, whichever is higher, that the reporting market reasonably determines accurately reflect market conditions. If vacated or withdrawn, bids and offers shall not be used in making this determination. A bid is vacated if followed by a higher bid or price and an offer is vacated if followed by a lower offer or price.
(ii)If there are no transactions, bids, or offers during the opening or closing periods, the reporting market may record as appropriate:
(A)The first price (in lieu of opening price data) or the last price (in lieu of closing price data) occurring during the trading session, clearly indicating that such prices are the first and the last price; or
(B)Nominal opening or nominal closing prices which the reporting market reasonably determines accurately reflect market conditions, clearly indicating that such prices are nominal.
(2)The settlement price established by each reporting market or its clearing organization.
(3)*Additional information.* Each reporting market shall record the following information with respect to transactions in commodity futures and commodity options on that reporting market:
(i)The method used by the reporting market in determining nominal prices and settlement prices; and
(ii)If discretion is used by the reporting market in determining the opening and closing ranges or the settlement prices, an explanation that certain discretion may be employed by the reporting market and a description of the manner in which that discretion may be employed.
(c)*Critical dates.* Each reporting market shall report to the Commission for each futures contract the first notice date and the last trading date and for each option contract the expiration date in accordance with paragraph
(d)of this section.
(d)*Form, manner and time of filing reports.* Unless otherwise approved by the Commission or its designee, reporting markets shall submit to the Commission the information specified in paragraphs (a)(1) through (a)(5),
(b)and
(c)of this section as follows:
(e)*Publication of recorded information.*
(1)Designated contract markets shall make the information in paragraph
(a)of this section readily available to the news media and the general public without charge, in a format that readily enables the consideration of such data, no later than the business day following the day to which the information pertains. The information in paragraphs (a)(4) through (a)(6) of this section shall be made readily available in a format that presents the information together.
(2)Designated contract markets shall make the information in paragraphs (b)(1) and (b)(2) of this section readily available to the news media and the general public, and the information in paragraph (b)(3) of this section readily available to the general public, in a format that readily enables the consideration of such data, no later than the business day following the day to which the information pertains.
(3)Registered derivatives transaction execution facilities shall comply with the publication of trading information requirement of section 5a(d)(5) of the Act and any Commission regulation adopted thereunder. 12. Revise § 16.06 to read as follows: § 16.06 Errors or omissions. Unless otherwise approved by the Commission or its designee, reporting markets shall file corrections to errors or omissions in data previously filed with the Commission pursuant to § § 16.00 and 16.01 in the format and using the coding structure and electronic data submission procedures approved in writing by the Commission or its designee. 13. In § 16.07, revise paragraphs
(a)and
(b)to read as follows: § 16.07 Delegation of authority to the Director of the Division of Market Oversight and the Executive Director.
(a)Pursuant to §§ 16.00(b) and 16.01(d), as applicable, the authority to determine whether reporting markets must submit data in hard copy, and the time that such data may be submitted where the Director determines that a reporting market is unable to meet the requirements set forth in the regulations;
(b)Pursuant to §§ 16.00(b)(1), 16.01(d)(1), and 16.06, the authority to approve the format, coding structure and electronic data transmission procedures used by reporting markets. PART 17—REPORTS BY REPORTING MARKETS, FUTURES COMMISSION MERCHANTS, MEMBERS OF REPORTING MARKETS, AND FOREIGN BROKERS 14. Revise the heading of part 17 as set forth above. 15. The authority citation for part 17 is revised to read as follows: Authority: 7 U.S.C. 6a, 6c, 6d, 6f, 6g, 6i, 7, 7a and 12a, unless otherwise noted. 16. In § 17.00, revise paragraphs (a)(1), (b)(2), and (g)(2)(iv); and add paragraph
(i)to read as follows: § 17.00 Information to be furnished by futures commission merchants, clearing members and foreign brokers.
(a)* * *
(1)Each futures commission merchant, clearing member and foreign broker shall submit a report to the Commission for each business day with respect to all special accounts carried by the futures commission merchant, clearing member or foreign broker, except for accounts carried on the books of another futures commission merchant on a fully-disclosed basis. Except as otherwise authorized by the Commission or its designee, such report shall be made in accordance with the format and coding provisions set forth in paragraph
(g)of this section. The report shall show each futures position, separately for each reporting market and for each future, and each put and call options position separately for each reporting market, expiration and strike price in each special account as of the close of market on the day covered by the report and, in addition, the quantity of exchanges of futures for commodities or for derivatives positions and the number of delivery notices issued for each such account by the clearing organization of a reporting market and the number stopped by the account. The report shall also show all positions in all futures months and option expirations of that same commodity on the same reporting market for which the special account is reportable.
(b)* * *
(2)*Accounts controlled by two or more persons* —Accounts that are subject to day-to-day trading control by two or more persons shall, together with other accounts subject to control by exactly the same persons, be considered a single account.
(g)* * *
(2)* * *
(iv)*Report date.* The format is YYYYMMDD, where YYYY is the year, MM is the month, and DD is the day of the month.
(i)*Exclusively self-cleared contracts.* Unless determined otherwise by the Commission, reporting markets that list exclusively self-cleared contracts shall meet the requirements of paragraphs
(a)through
(h)of this section, as they apply to trading in such contracts by all clearing members, on behalf of all clearing members. 17. In § 17.01, revise the introductory text and paragraphs (a),
(b)introductory text, (d),
(f)and (g); and add paragraph
(h)to read as follows: § 17.01 Special account designation and identification. When a special account is reported for the first time, the futures commission merchant, clearing member, or foreign broker shall identify the account to the Commission on Form 102, in the form and manner specified in § 17.02, showing the information in paragraphs
(a)through
(f)of this section.
(a)*Special account designator.* A unique identifier for the account, *provided* , that the same designator is assigned for option and futures reporting, and the designator is not changed or assigned to another account without prior approval of the Commission or its designee.
(b)*Special account identification.* The name, address, business phone, and for individuals, the person's job title and employer for the following:
(d)*Commercial use.* For futures or options, commodities in which positions or transactions in the account are associated with a commercial activity of the account owner in a related cash commodity or activity ( *i.e.* , those considered as hedging, risk-reducing, or otherwise off-setting with respect to the cash commodity or activity).
(f)*Reporting firms.* The name and address of the futures commission merchant, clearing member, or foreign broker carrying the account, and the name, title and business phone of the authorized representative of the firm filing the Form 102 and the date of the Form 102. The authorized representative shall sign the Form 102 or satisfy such other requirements for authenticating the report as instructed in writing by the Commission or its designee.
(g)*Form 102 updates.* If, at the time an account is in special account status and a Form 102 filed by a futures commission merchant, clearing member, or foreign broker is then no longer accurate because there has been a change in the information required under paragraph
(b)of this section since the previous filing, the futures commission merchant, clearing member, or foreign broker shall file an updated Form 102 with the Commission within three business days after such change occurs.
(h)*Exclusively self-cleared contracts.* Unless determined otherwise by the Commission, reporting markets that list exclusively self-cleared contracts shall meet the requirements of paragraphs
(a)through
(g)of this section, as they apply to trading in such contracts by all clearing members, on behalf of all clearing members. 18. Revise § 17.02 to read as follows: § 17.02 Form, manner and time of filing reports. Unless otherwise instructed by the Commission or its designee, the reports required to be filed by reporting markets, futures commission merchants, clearing members and foreign brokers under § § 17.00 and 17.01 shall be filed as specified in paragraphs
(a)and
(b)of this section.
(a)*Section 17.00(a) reports.* Reports filed under § 17.00(a) shall be submitted through electronic data transmission procedures approved in writing by the Commission or its designee not later than 9 a.m. on the business day following that to which the information pertains. Unless otherwise specified by the Commission or its designee, the stated time is eastern time for information concerning markets located in that time zone, and central time for information concerning all other markets.
(b)*Section 17.01 reports.* For data submitted pursuant to § 17.01 on Form 102:
(1)On call by the Commission or its designee, identify the type of special account specified by items 1(a), 1(b), or 1(c) of Form 102, and the name and location of the person to be identified in item 1(d) on the Form 102, and submit such information by facsimile or telephone, in accordance with instructions by the Commission or its designee, on the same day that the special account in question is first reported to the Commission; and
(2)Submit a completed Form 102 within three business days of the first day that the special account in question is reported to the Commission in accordance with instructions by the Commission or its designee. 19. In § 17.03, revise the introductory text and paragraph
(c)to read as follows: § 17.03 Delegation of authority to the Director of the Division of Market Oversight and to the Executive Director. The Commission hereby delegates, until the Commission orders otherwise, the authority set forth in paragraphs
(a)and
(b)of this section to the Director of the Division of Market Oversight and the authority set forth in paragraphs
(c)and
(d)of this section to the Executive Director to be exercised by such Director or by such other employee or employees of such Director as designated from time to time by the Director. The Director of the Division of Market Oversight or the Executive Director may submit to the Commission for its consideration any matter which has been delegated in this paragraph. Nothing in this paragraph prohibits the Commission, at its election, from exercising the authority delegated in this paragraph.
(c)Pursuant to § 17.01(f), the authority to determine whether to permit an authorized representative of a firm filing the Form 102 to use a means of authenticating the report other than by signing the Form 102 and, if so, to determine the alternative means of authentication that shall be used. 20. In § 17.04, revise paragraphs (a), (b)(1)(i), and (b)(2) to read as follows: § 17.04 Reporting omnibus accounts to the carrying futures commission merchant or foreign broker.
(a)Any futures commission merchant, clearing member or foreign broker who establishes an omnibus account with another futures commission merchant or foreign broker shall report to that futures commission merchant or foreign broker the total open long positions and the total open short positions in each future of a commodity and, for commodity options transactions, the total open long put options, the total open short put options, the total open long call options, and the total open short call options for each commodity options expiration date and each strike price in such account at the close of trading each day. The information required by this section shall be reported in sufficient time to enable the futures commission merchant or foreign broker with whom the omnibus account is established to comply with part 17 of these regulations and reporting requirements established by the reporting markets.
(b)* * *
(1)* * *
(i)The positions represent transactions on a reporting market which requires long and short positions in the same future or option held in accounts for the same trader to be recorded and reported on a gross basis; or
(2)Include only the net long or net short positions of the trader if the positions represent transactions on a reporting market which does not require long and short positions in the same future or option held in accounts for the same trader to be recorded and reported on a gross basis. PART 18—REPORTS BY TRADERS 21. The authority citation for part 18 continues to read as follows: Authority: 7 U.S.C. 2, 4, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 12a and 19; 5 U.S.C. 552 and 552(b), unless otherwise noted. 22. In § 18.00 revise the introductory text to read as follows: § 18.00 Information to be furnished by traders. Every trader who owns, holds or controls, or has held, owned or controlled, a reportable futures or options position in a commodity shall within one business day after a special call upon such trader by the Commission or its designee file reports to the Commission concerning transactions and positions in such futures or options. Reports shall be filed for the period of time that the trader held or controlled a reportable position and shall be prepared and submitted as instructed in the call. The report shall show for each day covered by the report the following information, as specified in the call, separately for each future or option and for each reporting market: 23. Revise § 18.05 to read as follows: § 18.05 Maintenance of books and records. Every trader who holds or controls a reportable futures or option position shall keep books and records showing all details concerning all positions and transactions for future delivery in the commodity on all reporting markets, all positions and transactions in the commodity option, and all positions and transactions in the cash commodity, its products and byproducts and, in addition, commercial activities that the trader hedges in the commodity underlying the futures contract in which the trader is reportable, and shall upon request furnish to the Commission any pertinent information concerning such positions, transactions or activities. (Approved by the Office of Management and Budget under control number 3038-0007) PART 19—REPORTS BY PERSONS HOLDING BONA FIDE HEDGE POSITIONS PURSUANT TO § 1.3(Z) OF THIS CHAPTER AND BY MERCHANTS AND DEALERS IN COTTON 24. The authority citation for part 19 continues to read as follows: Authority: 7 U.S.C. 6g(a), 6i and 12a(5), unless otherwise noted. 25. In § 19.00, revise paragraphs
(a)and
(b)introductory text to read as follows: § 19.00 General provisions.
(a)*Who must file series '04 reports.* The following persons are required to file series '04 reports:
(1)All persons holding or controlling futures and option positions that are reportable pursuant to § 15.00(l)(2) of this chapter and any part of which constitute bona fide hedging positions as defined in § 1.3(z) of this chapter;
(2)Merchants and dealers of cotton holding or controlling positions for futures delivery in cotton that are reportable pursuant to § 15.00(l)(1)(i) of this chapter, or
(3)All persons holding or controlling positions for future delivery that are reportable pursuant to § 15.00(l)(1) of this chapter who have received a special call for series '04 reports from the Commission or its designee. Filings in response to a special call shall be made within one business day of receipt of the special call unless otherwise specified in the call. For the purposes of this paragraph, the Commission hereby delegates to the Director of the Division of Market Oversight, or to such other person designated by the Director, authority to issue calls for series '04 reports.
(b)*Manner of reporting.* The manner of reporting the information required in § 19.01 is subject to the following: 26. In § 19.01, revise paragraph
(a)introductory text to read as follows: § 19.01 Reports on stocks and fixed price purchases and sales pertaining to futures positions in wheat, corn, oats, soybeans, soybean oil, soybean meal or cotton.
(a)*Information required.* Persons required to file '04 reports under § 19.00(a)(1) or § 19.00(a)(3) of this chapter shall file CFTC Form 304 reports for cotton and Form 204 reports for other commodities showing the composition of the fixed price cash position of each commodity hedged including: PART 21—SPECIAL CALLS 27. The authority for part 21 continues to read as follows: Authority: 7 U.S.C. 1a, 2, 2a, 4, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 7, 7a, 12a, 19 and 21; 5 U.S.C. 552 and 552(b), unless otherwise noted. 28. Revise § 21.01 to read as follows: § 21.01 Special calls for information on controlled accounts from futures commission merchants and introducing brokers. Upon call by the Commission, each futures commission merchant and introducing broker shall file with the Commission the names and addresses of all persons who, by power of attorney or otherwise, exercise trading control over any customer's account in commodity futures or commodity options on any reporting market. (Approved by the Office of Management and Budget under control number 3038-0009) 29. Revise the heading and introductory text of § 21.02 to read as follows: § 21.02 Special calls for information on open contracts in accounts carried or introduced by futures commission merchants, members of reporting markets, introducing brokers, and foreign brokers. Upon special call by the Commission for information relating to futures or option positions held or introduced on the dates specified in the call, each futures commission merchant, member of a reporting market, introducing broker, or foreign broker, and, in addition, for option information, each reporting market, shall furnish to the Commission the following information concerning accounts of traders owning or controlling such futures or option positions, except for accounts carried on a fully disclosed basis by another futures commission merchant, as may be specified in the call: 30. Revise the heading and paragraphs (c), (d),
(e)introductory text, and
(f)of § 21.03 to read as follows: § 21.03 Selected special calls—duties of foreign brokers, domestic and foreign traders, futures commission merchants, introducing brokers, and reporting markets.
(c)Upon a determination by the Commission that information concerning accounts may be relevant information in enabling the Commission to determine whether the threat of a market manipulation, corner, squeeze, or other market disorder exists on any reporting market, the Commission may issue a call for information from a futures commission merchant or customer pursuant to the provisions of this section.
(d)In the event the call is issued to a foreign broker or foreign trader, its agent, designated pursuant to § 15.05 of this chapter, shall, if directed, promptly transmit calls made by the Commission pursuant to this section by electronic mail or a similarly expeditious means of communication.
(e)The futures commission merchant, introducing broker, or customer to whom the special call is issued must provide to the Commission the information specified below for the commodity, reporting market and delivery months or option expiration dates named in the call. Such information shall be filed at the place and within the time specified by the Commission.
(f)If the Commission has reason to believe that a futures commission merchant or customer has not responded as required to a call made pursuant to this section, the Commission in writing may inform the reporting market specified in the call and that reporting market shall prohibit the execution of, and no futures commission merchant, introducing broker, or foreign broker shall accept an order for, trades on the reporting market and in the months or expiration dates specified in the call for or on behalf of the futures commission merchant or customer named in the call, unless such trades offset existing open contracts of such futures commission merchant or customer. PART 37—DERIVATIVES TRANSACTION EXECUTION FACILITIES 31. The authority for part 37 continues to read as follows: Authority: 7 U.S.C. 2, 5, 6, 6c, 6(c), 7a and 12a, as amended by Appendix E of Public Law 106-554, 114 Stat. 2763A-365. 32. Revise § 37.2 to read as follows: § 37.2 Exemption. Contracts, agreements or transactions traded on a derivatives transaction execution facility registered as such with the Commission under section 5a of the Act, the facility and the facility's operator are exempt from all Commission regulations for such activity, except for the requirements of this part 37 and:
(a)Parts 15 through 21, part 40 and part 41 of this chapter, including any related definitions and cross-referenced sections; and
(b)Sections 1.3, 1.31, 1.59(d), 1.60, 1.63(c), 33.10, and part 190 of this chapter, including any related definitions and cross-referenced sections, which are applicable as though they were set forth in this part 37 and included specific reference to derivatives transaction execution facilities. Issued in Washington, DC, on June 28, 2006, by the Commission. Eileen A. Donovan, Acting Secretary of the Commission. [FR Doc. E6-10383 Filed 6-30-06; 8:45 am] BILLING CODE 6351-01-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-080] RIN 1625-AA00 Safety Zone; 4th of July Fireworks Display, Kenosha, WI AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone for the 4th of July Fireworks Display in Kenosha, Wisconsin. This safety zone is necessary to safeguard vessels and spectators from hazards associated with fireworks displays. This rule is intended to restrict vessel traffic from a portion of Lake Michigan and Kenosha Harbor. DATES: This safety zone is effective from 8:15 p.m. (local) to 10:30 p.m. on July 4, 2006. ADDRESSES: Documents indicated in this preamble as being available in the docket, are part of docket [CGD09-06-080] and are available for inspection or copying at U.S. Coast Guard Sector Lake Michigan between 7 a.m. and 3:30 p.m. (local), Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Chief Warrant Officer Brad Hinken, U.S. Coast Guard Sector Lake Michigan, at
(414)747-7154. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. The permit application was not received in time to publish an NPRM followed by a final rule before the effective date. Under 5 U.S.C. 553(d)(3), good cause exists for making this rule effective less than 30 days after publication in the **Federal Register** . Delaying this rule would be contrary to the public interest of ensuring the safety of spectators and vessels during this event and immediate action is necessary to prevent possible loss of life or property. The Coast Guard has not received any complaints or negative comments previously with regard to this event. Background and Purpose This safety zone is necessary to protect the public from the hazards associated with fireworks displays. Based on accidents that have occurred in other Captain of the Port zones, and the explosive hazards of fireworks, the Captain of the Port, Sector Lake Michigan, has determined fireworks launches in close proximity to watercraft pose significant risk to public safety and property. As such, the COTP is proposing to implement a safety zone to ensure the safety of both participants and spectators in these areas. The likely combination of large numbers of recreation vessels, congested waterways, darkness punctuated by bright flashes of light, alcohol use, and debris falling into the water could easily result in serious injuries or fatalities. Establishing a safety zone to control vessel movement around the location of the launch platform will help ensure the safety of persons and property at these events and help minimize the associated risks. Discussion of Rule The Coast Guard is establishing a safety zone on the waters of Lake Michigan near Kenosha, Wisconsin. The safety zone will include all waters of Lake Michigan surrounding the fireworks launch platform bounded by the arc of a circle with a 560-foot radius with its center in the approximate position 42°35.17′ N, 087°48.27′ W (NAD 83). Vessels assisting in the enforcement of the Safety Zone may be contacted on VHF-FM channels 16 or 23A. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). We expect the economic impact of this rule to be so minimal that a full Regulatory Evaluation under the regulatory policies and procedures of DHS is unnecessary. This determination is based upon the size and location of the safety zone within the waterway. Recreational vessels may transit through the safety zone with permission from the Captain of the Port Lake Michigan or his designated on-scene patrol commander. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: The safety zone will be enforced for only a few hours per day on each day of the event and vessel traffic can safely pass outside of the safety zone during the event. Before the effective period, we would issue maritime advisories widely available to users of the lake. If you think your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment (see ADDRESSES ) explaining why you think it qualifies and how and to what degree this rule would economically affect it. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule so that they can better evaluate its effects on them and participate in the rulemaking. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact Sector Lake Michigan (see ADDRESSES ). 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. Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not effect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children. Indian Tribal Governments This rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would 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. We invite your comments on how this rule might impact tribal government, even if that impact may not constitute a “tribal implication” under that Order. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD, which guides the Coast Guard in complying with the National Environmental Policy Act of 1969
(NEPA)(42 U.S.C. 4321-4370f), and have made a preliminary determination that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, we believe that this rule should be categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. A final “Environmental Analysis Check List” and a final “Categorical Exclusion Determination” are available in the docket where indicated under ADDRESSES . List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1231; 50 U.S.C. 191, 33 CFR 1.05-1(g), 6.04-1, 6.04-6 and 160.5, Department of Homeland Security Delegation No. 0170. 2. A new temporary § 165.T09-080 is added to read as follows: § 165.T09-080 Safety Zone; 4th of July Fireworks Display Kenosha, Wisconsin.
(a)*Location.* The following area is a Safety Zone:
(1)The safety zone will include all waters of Lake Michigan surrounding the fireworks launch platform bounded by the arc of a circle with a 560-foot radius with its center in the approximate position 42°35.17′ N, 087°48.27′ W (NAD 83).
(b)*Effective Dates and Times.* This safety zone is effective from 8:15 p.m. (local) to 10:30 p.m. on July 4th, 2006. The Captain of the Port, Sector Lake Michigan, or the on scene Patrol Commander may terminate this event at anytime.
(c)*Regulations.* In accordance with the general regulations in § 165.23 of this part, entry into this zone is subject to the following requirements:
(1)This safety zone is closed to all marine traffic, except as may be permitted by the Captain of the Port or his duly appointed representative.
(2)The “duly appointed representative” of the Captain of the Port is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Lake Michigan, to act on his behalf. The representative of the Captain of the Port will be aboard either a Coast Guard or Coast Guard Auxiliary vessel.
(3)Vessel operators desiring to enter or operate within the Safety Zone shall contact the Captain of the Port or his representative to obtain permission to do so. Vessel operators given permission to enter or operate in the Safety Zone shall comply with all directions given to them by the Captain of the Port or his representative.
(4)The Captain of the Port may be contacted by telephone via the Sector Lake Michigan Operations Center at
(414)747-7182 during working hours. Vessels assisting in the enforcement of the Safety Zone may be contacted on VHF-FM channels 16 or 23A. Vessel operators may determine the restrictions in effect for the safety zone by coming alongside a vessel patrolling the perimeter of the Safety Zone.
(5)Coast Guard Sector Lake Michigan will issue a Marine Safety Information Broadcast Notice to Mariners to notify the maritime community of the Safety Zone and restriction imposed. Dated: June 22, 2006. S.P. LaRochelle, Captain, U.S. Coast Guard, Captain of the Port Sector Lake Michigan. [FR Doc. E6-10392 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-076] Safety Zone: Captain of the Port Sector Lake Michigan Zone AGENCY: Coast Guard, DHS. ACTION: Notice of enforcement of regulation. SUMMARY: The Coast Guard will enforce safety zones for annual fireworks displays in the Captain of the Port Sector Lake Michigan Zone during July 2006. This action is necessary to provide for the safety of life and property on navigable waters during these events. These safety zones will restrict vessel traffic from a portion of the Captain of the Port Sector Lake Michigan Zone. DATES: *Effective Dates:* Effective from 12:01 a.m. (local) on July 1, 2006 to 11:59 p.m. (local) on July 31, 2006. FOR FURTHER INFORMATION CONTACT: Chief Warrant Officer Brad Hinken, Sector Lake Michigan,
(414)747 7154. SUPPLEMENTARY INFORMATION: The Coast Guard will enforce the permanent safety zones in 33 CFR 100.901 (published July 1, 2005), for fireworks displays in the Captain of the Port Sector Lake Michigan Zone during July 2006. The following safety zones are in effect for fireworks displays occurring in the month of July 2006:
(1)*Venetian Festival Fireworks Display* , St. Joseph River, Michigan. Location: St. Joseph River, within a 1,000-foot radius of the fireworks launching site, located at the St. Joseph South Pier, in approximate position 42°06′48″ N 086°29′15″ W. Enforcement Date: The Venetian Festival Fireworks Display safety zone will be enforced from 9 p.m. (local) to 11:30 p.m. (local) on July 15, 2006.
(2)*South Haven 4th of July Fireworks* , South Haven, Michigan. Location: Lake Michigan, Black River, South Haven, MI within a 1000 foot radius of the fireworks launching site located on the North Pier, in approximate position 42°24′08″ N 086°17′03″ W. (NAD 1902). Enforcement Date: The South Haven 4th of July Fireworks safety zone will be enforced from 9 p.m. (local) to 11 p.m. (local) on July 5, 2006.
(3)*Van Andel Fireworks Show* , Holland, MI. Location: Lake Michigan, Holland Harbor, MI, South Pier, within a 1000 foot radius of the fireworks launching site located in approximate position 42°46′21″ N 086°12′48″ W. Enforcement Dates: The Van Andel Fireworks Show safety zone will be enforced from 9 p.m. (local) to 11 p.m. (local) on July 3, 2006 and from 9 p.m. (local) to 11 p.m. (local) on July 4, 2006.
(4)*City Fireworks* , Frankfort, MI. Location: Lake Michigan, Frankfort, MI within a 1000 foot radius of the fireworks launching site located on Lake Michigan Beach in approximate position 44°38′ N 086°14′50″ W. Enforcement Dates: The City Fireworks safety zone will be enforced from 9 p.m. (local) to 11 p.m. (local) on July 4, 2006.
(5)*4th of July Fireworks,* St. Joseph, MI. Location: St. Joseph River, within a 1000 foot radius of the fireworks launching site, located at the St. Joseph South Pier, in approximate position 42°06′48″ N 086°29′15″ W. Enforcement Dates: The 4th of July Fireworks safety zone will be enforced from 7 p.m. (local) to 9 p.m. (local) on July 3, 2006.
(6)*Grand Haven Area Jaycees Annual 4th of July Fireworks Display* , Grand Haven, MI. Location: That portion of the Grand River, Grand Haven, MI from the pier heads (mile 0.0) to the U.S. 31 Bascule Bridge (mile 2.89). Enforcement Dates: The Grand Haven Area Jaycees Annual 4th of July Fireworks Display safety zone will be enforced from 7 p.m. (local) to 11 p.m. (local) on July 4, 2006. In order to ensure the safety of spectators and transiting vessels, these safety zones will be in effect for the duration of the events. In the event that these safety zones affect shipping, commercial vessels may request permission from the Captain of the Port, Sector Lake Michigan to transit through the safety zone. Requests must be made in advance and approved by the Captain of Port before transits will be authorized. The Captain of the Port may be contacted via U.S. Coast Guard Sector Lake Michigan on channel 16, VHF-FM. The Coast Guard will give notice to the public via a Broadcast Notice to Mariners that the regulation is in effect. Dated: June 22, 2006. S.P. LaRochelle, Captain, U.S. Coast Guard, Captain of the Port Sector Lake Michigan. [FR Doc. E6-10365 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [COTP Charleston 06-111] RIN 1625-AA00 Safety Zone; 4th July Fireworks, Cooper River, Patriots Point, Mount Pleasant, SC AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a safety zone on the navigable waters of the Cooper River for a Fourth of July fireworks display. The safety zone extends 1000 feet in all directions from USS Yorktown located at Patriots Point, Mt. Pleasant, SC, in approximate position 32°47′27″ N 079°54′34″ W. The rule prohibits entry, anchoring, mooring or transiting within the safety zone without the permission of the Captain of the Port Charleston or his designated representative. This regulation is necessary to protect life and property on the navigable waters of the Cooper River from the hazards associated with the launching of fireworks. DATES: This rule is effective from 6 p.m. on July 4 until 12:01 a.m on July 5, 2006. ADDRESSES: You may mail comments and related material to Commander Coast Guard Sector Charleston (WWM), 196 Tradd Street, Charleston, South Carolina 29401. This Office maintains the public docket for this rulemaking. Comments and material received from the public, as well as documents indicated in this preamble as being available in the docket, will become part of this docket and will be available for inspection or copying at Waterways Management Division 7:30 a.m. and 4 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Chief Warrant Officer James J. McHugh, Sector Charleston office of Waterways Management, at
(843)724-7647. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a NPRM. The exact location and time of the event was not provided with sufficient time for public comment. Publishing a NPRM, which would incorporate a comment period before a final rule could be issued and delay the rule's effective date, is contrary to public interest because immediate action is necessary to protect the public and waters of the United States. For the same reasons, under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the **Federal Register** . The Coast Guard will issue a broadcast notice to mariners and will place Coast Guard vessels in the vicinity of this zone to advise mariners of the restriction. Background and Purpose This rule allows the Coast Guard Captain of the Port Charleston, South Carolina, to establish a safety zone in order to provide for a minimum separation set back area for the Patriots Point July Fourth Fireworks event, as recommended by the National Fire Protection Association for firework displays. The safety zone is necessary to protect the participants and spectators, and to ensure no unsafe conditions exist. Discussion of Rule The safety zone will be in effect and enforced in an area extending 1000 feet in any direction from USS Yorktown located at Patriots Point, Mt. Pleasant, SC in approximate position 32°47′27″ N, 079°54′34″ W. The safety zone will be enforced from 6:00 p.m. until 12:01 a.m. for the Fireworks display. The safety zone will be activated by a local Broadcast to Mariners and a Marine Safety Information Bulletin. Persons and vessels will be prohibited from entering, anchoring, mooring or transiting within the safety zone without the permission of the Captain Of the Port Charleston or his designated representative. Any concerned traffic may request permission to pass through the safety zone from the COTP or his designated representative on VHF-FM channel 16 or via phone at
(843)720-3240. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under the order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security
(DHS)because these regulations will only be in effect for a short period of time and the impact on routine navigation is expected to be minimal. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule would not have a significant economic impact on a substantial number of small entities. This rule will not have a significant economic impact on a substantial number of small entities for the following reasons: this rule is for a highly publicized event and will only be in effect for a limited time and for a limited area. The Coast Guard Patrol Commander can authorize transits through the regulated area on a as needed basis. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule so that they can better evaluate its effects on them and participate in the rulemaking. If the rule will affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance; please contact Chief Warrant Officer James J. McHugh, Sector Charleston Office of Waterways Management, at 843 724-7647. 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. Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule would not effect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children. Indian Tribal Governments This rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would 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. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD and Department of Homeland Security Management Directive 5100.1, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969
(NEPA)(42 U.S.C. 4321-4370f), and have concluded that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, this rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. A final “Environmental Analysis Checklist” and a final “Categorical Exclusion Determination” are available in the docket where indicated under addresses. List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165, as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191; 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. 2. Add § 165.T07-111 to read as follows: § 165.T07-111 Safety Zone; Cooper River, Patriots Point, Mt. Pleasant, SC.
(a)*Location.* The Coast Guard is establishing a safety zone for a fireworks display. The safety zone extends 1000 feet in all directions from USS Yorktown located at Patriots Point, Mt. Pleasant, SC, in approximate position 32°47′27″ N 079°54′34″ W. These coordinates are based upon the North American datum of 1983 (NAD83).
(b)*Definitions.* The following definitions apply to this section: *Designated representative* means Coast Guard Patrol Commanders, including Coast Guard coxswains, petty officers or other officers operating Coast Guard vessel and a Federal, State, and local officers designated by or assisting the Captain of the Port Charleston
(COTP)in the enforcement of the safety zone.
(c)*Regulations.*
(1)Under the general regulations in § 165.23, entry into, transiting, or anchoring within this safety zone is prohibited unless authorized by the COTP, Charleston, South Carolina or the COTP's designated representative.
(2)The safety zone is closed to all vessel traffic, except as may be permitted by the COTP or the COTP's designated representative.
(3)Vessel operators desiring to enter or operate within the safety zone must contact the COTP or the COTP's designated representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by thee COTP or the COTP's designated representative.
(d)*Effective period.* This rule is effective from 6 p.m. on July 4 until 12:01 a.m on July 5, 2006. Dated: June 21, 2006. J.E. Cameron, Captain, U.S. Coast Guard, Captain of the Port, Charleston, South Carolina. [FR Doc. E6-10366 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-072] RIN 1625-AA00 Safety Zone; Lake Michigan: Michigan City Independence Day Fireworks, Dunes Acres, Michigan City, IN AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone in Lake Michigan near Dunes Acres, Michigan City, IN, for the Michigan City Independence Day Fireworks on July 1, 2006. This safety zone is needed to protect participants and spectators from the hazards associated with fireworks displays. Entry into this zone is prohibited unless authorized by the Captain of the Port or his designated on scene representative. DATES: This rule is effective from 9 p.m. (local) on July 1, 2006 through 11 p.m. (local) on July 1, 2006. ADDRESSES: Documents indicated in this preamble as being available in the docket, are part of docket [CGD09-06-072] and are available for inspection or copying at U.S. Coast Guard Sector Lake Michigan, 2420 South Lincoln Memorial Drive, Milwaukee, WI 53207 between 7 a.m. and 3:30 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Chief Warrant Officer Brad Hinken, Sector Lake Michigan,
(414)747-7154. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. The permit application was not submitted in time to allow for publication of an NPRM followed by a temporary final rule before the effective date. Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days from the date of publication in the **Federal Register** . Any delay of the effective date of this rule would be contrary to the public interest by exposing the public to the known dangers associated with fireworks displays. Background and Purpose This temporary safety zone is necessary to ensure the safety of vessels and spectators from hazards associated with a fireworks display. Based on accidents that have occurred in other Captain of the Port zones, and the explosive hazards of fireworks, the Captain of the Port Lake Michigan has determined fireworks launches in close proximity to watercraft pose significant risk to public safety and property. The likely combination of large numbers of recreation vessels, congested waterways, darkness punctuated by bright flashes of light, alcohol use, and debris falling into the water could easily result in serious injuries or fatalities. Establishing a safety zone to control vessel movement around the location of the launch platform will help ensure the safety of persons and property at these events and help minimize the associated risks. This safety zone is necessary to ensure the safety of the public and boating traffic in the Dunes Acres area during this event. This safety zone is intended to restrict vessel traffic from a portion of Lake Michigan. The size of the zone was determined by fireworks shell size and previous experiences in the Captain of the Port Lake Michigan zone and local knowledge about wind, waves, and currents in this particular area. Discussion of Rule A temporary safety zone is necessary to ensure the safety of spectators and vessels during the setup, loading and launching of a fireworks display in conjunction with the Michigan City Independence Day fireworks display. The fireworks display will occur between 9 p.m. (local) and 11 p.m. (local) on July 1, 2006. The safety zone will encompass all waters of Lake Michigan from within a 500-foot radius of the fireworks launching site located in approximate position 41°-39.24′N and 086°-04.98′W. All persons and vessels shall comply with the instructions of the Captain of the Port Lake Michigan or his designated on scene representative. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Lake Michigan or his designated on scene representative. The Captain of the Port Lake Michigan may be contacted via VHF Channel 16. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security. We expect the economic impact of this rule to be so minimal that a full Regulatory Evaluation under the regulatory policies and procedures of DHS is unnecessary. This determination is based upon the size and location of the safety zone within the waterway. Vessels will only be restricted from the safety zone for a short period of time. Vessels may transit through the safety zone with permission from the Captain of the Port Lake Michigan or his designated on scene representative. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This rule will affect the following entities, some of which may be small entities: The owners or operators of vessels intending to transit or anchor near Dunes Acres, Michigan City, IN, within the safety zone. This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: This rule will only be in effect for two hours. Vessel traffic may enter or transit through the safety zone with the permission of the Captain of the Port Lake Michigan or his designated on scene representative. Before the effective period, we will issue maritime advisories and ensure they are widely available to users of Lake Michigan. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small entities in understanding the rule so that they can better evaluate its effects on them and participate in the rulemaking process. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance; please contact Coast Guard Sector Lake Michigan (See ADDRESSES ). Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local government and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not concern an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments 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. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedure; and related management system practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD and Department of Homeland Security Management Directive 5100.1, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have concluded that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, this rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. This event establishes a safety zone therefore paragraph (34)(g) of the Instruction applies. A final “Environmental Analysis Check List” and a final “Categorical Exclusion Determination” are available in the docket where indicated under ADDRESSES . List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, and Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. 2. A new temporary § 165.T09-072 is added to read as follows: § 165.T09-072 Safety Zone; Michigan City Independence Day Fireworks, Dunes Acres, Michigan City, Indiana.
(a)*Location.* The following area is a safety zone: all water of Lake Michigan within a 500-foot radius of the fireworks launching site located in approximate position 41°-39.24′ N and 086°-04.98′ W.
(b)*Effective period.* This rule is effective from 9 p.m. (local) on July 1, 2006 through 11 p.m. (local) on July 1, 2006.
(c)*Regulations.* In accordance with the general regulations in 33 CFR 165.23 of this part, entry into this zone is subject to the following requirements:
(1)This safety zone is closed to all marine traffic, except as may be permitted by the Captain of the Port or his duly appointed representative.
(2)The “designated on scene representative” of the Captain of the Port is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Lake Michigan to act on his behalf. The designated on scene representative of the Captain of the Port will be aboard either a Coast Guard or Coast Guard Auxiliary vessel.
(3)Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port or his representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone shall comply with all directions given to them by the Captain of the Port or his designated on scene representative.
(4)The Captain of the Port may be contacted by telephone via the Sector Lake Michigan Operations Center at
(414)747-7182. Vessels assisting in the enforcement of the safety zone may be contacted on VHF-FM channel 16. Vessel operators may determine the restrictions in effect for the safety zone by coming alongside a vessel patrolling the perimeter of the safety zone.
(5)Coast Guard Sector Lake Michigan will issue a Marine Safety Information Broadcast Notice to Mariners to notify the maritime community of the safety zone and restriction imposed. Dated: June 22, 2006. S.P. LaRochelle, Captain, U.S. Coast Guard, Captain of the Port Sector Lake Michigan. [FR Doc. E6-10330 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-075] RIN 1625-AA00 Safety Zone; Independence Day Fireworks, Heart Island, Alexandria Bay, NY AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone encompassing the navigable waters of the St. Lawrence River during the Independence Fireworks on July 3, 2006. This safety zone is necessary to ensure the safety of spectators and vessels from the hazards associated with fireworks displays. This safety zone is intended to restrict vessel traffic from a portion of the St. Lawrence River, Heart Island, New York. DATES: This rule will be effective from 9 p.m. (local) until 10 p.m. (local) on July 3, 2006. ADDRESSES: Comments and material received from the public, as well as documents indicated in this preamble as being available in the docket, are part of docket [CGD09-06-075] and are available for inspection or copying at: U.S. Coast Guard Sector Buffalo, 1 Fuhrmann Blvd, Buffalo, New York 14203, between 8 a.m. and 4 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: LT Tracy Wirth, U.S. Coast Guard Sector Buffalo, at
(716)843-9573. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. The permit application was not received in time to publish an NPRM followed by a final rule before the effective date. Under 5 U.S.C. 553(d)(3), good cause exists for making this rule effective less than 30 days after publication in the **Federal Register** . Delaying this rule would be contrary to the public interest of ensuring the safety of spectators and vessels during this event, and immediate action is necessary to prevent possible loss of life or property. The Coast Guard has not received any complaints or negative comments previously with regard to this event. Background and Purpose Temporary safety zones are necessary to ensure the safety of vessels and spectators from the hazards associated with fireworks displays. Based on recent accidents that have occurred in other Captain of the Port zones and the explosive hazard of fireworks, the Captain of the Port Buffalo has determined fireworks launches in close proximity to watercraft pose significant risks to public safety and property. The likely combination of large numbers of recreational vessels, congested waterways, darkness punctuated by bright flashes of light, alcohol use, and debris falling into the water could easily result in serious injuries or fatalities. Establishing a safety zone to control vessel movement around the locations of the launch platforms will help ensure the safety of persons and property at these events and help minimize the associated risk. Discussion of Rule A temporary safety zone is necessary to ensure the safety of spectators and vessels during the setup, loading and launching of a fireworks display in conjunction with the Independence Day Fireworks Celebration. The fireworks display will occur between 9 p.m. (local) until 10 p.m. (local) on July 3, 2006. The safety zone consists of all navigable waters of the St. Lawrence River in a 500-foot radius around a point at approximate position 44°20′39″ N, 075°55′16″ W. All Geographic coordinates are North American Datum of 1983 (NAD 83). The size of this zone was determined using the National Fire Prevention Association guidelines and local knowledge concerning wind, waves, and currents. All persons and vessels shall comply with the instructions of the Coast Guard Captain of the Port or the designated on-scene representative. The Captain of the Port of Buffalo, or his designated on-scene representative, has the authority to terminate the event. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Buffalo or his designated on-scene representative. The Captain of the Port or his designated on-scene representative may be contacted via VHF Channel 16. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). We expect the economic impact of this rule to be so minimal that a full Regulatory Evaluation under the regulatory policies and procedures of DHS is unnecessary. This determination is based on the minimal time that vessels will be restricted from the zone and the zone is an area where the Coast Guard expects insignificant adverse impact to mariners from the zones' activation. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this rule would have a significant impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This rule will affect the following entities, some of which might be small entities: The owners or operators of commercial vessels intending to transit a portion of the St Lawrence River during the activated safety zone. This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: This safety zone is only in effect for a very limited duration from 9 p.m. (local) until 10 p.m. (local) on the day of the event. Vessel traffic can safely pass outside the safety zone during the event. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offered to assist small entities in understanding this rule so that they can better evaluate its effects and participate in the rulemaking process. Small businesses may send comments on actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under Executive Order 13132 and have determined that this rule does not have implications for federalism under that Order. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children The Coast Guard has analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not concern an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments 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. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. It has not been designated by the Administrator of the Office of Information and Regulatory Affairs as a significant energy action. Therefore, it does not require a Statement of energy effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedure; and related management system practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.1D, which guides the Coast Guard in complying with the National Environmental Policy Act of 1969
(NEPA)(42 U.S.C. 4321-4370f), and have made a preliminary determination that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, we believe that this rule should be categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. This event establishes a safety zone therefore paragraph (34)(g) of the Instruction applies. A final “Environmental Analysis Check List” and a final “Categorical Exclusion Determination” are available in the docket where indicated under ADDRESSES . List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1 2. A new temporary § 165.T09-075 is added to read as follows: § 165.T09-075 Safety Zone; Independence Day Fireworks, Heart Island, Alexandria Bay, NY.
(a)*Location.* The following area is a temporary safety zone: all navigable waters of the St. Lawrence River in a 500-foot radius around a point at approximate position 44°20′39″ N, 075°55′16″ W. All geographic coordinates are North American Datum of 1983 (NAD 83).
(b)*Effective time and date.* This section is effective from 9 p.m. (local) until 10 p.m. (local) on July 3rd, 2006.
(c)*Regulations.*
(1)In accordance with the general regulations in section 165.23 of this part, entry into, transiting, or anchoring within this safety zone is prohibited unless authorized by the Captain of the Port Buffalo, or his designated on-scene representative.
(2)This safety zone is closed to all vessel traffic, except as may be permitted by the Captain of the Port Buffalo or his designated on-scene representative.
(3)The “on-scene representative” of the Captain of the Port is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port to act on his behalf. The on-scene representative of the Captain of the Port will be aboard either a Coast Guard or Coast Guard Auxiliary vessel. The Captain of the Port or his designated on-scene representative may be contacted via VHF Channel 16.
(4)Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port Buffalo or his on-scene representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone shall comply with all directions given to them by the Captain of the Port Buffalo or his on-scene representative. Dated: June 20, 2006. S.J. Ferguson, Captain, U.S. Coast Guard, Captain of the Port Buffalo. [FR Doc. E6-10320 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-078] RIN 1625-AA00 Safety Zone; Pentwater July 3rd Fireworks, Pentwater, MI AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone in Pentwater, MI, for the Pentwater July 3rd Fireworks. This safety zone is needed to protect participants and spectators from the hazards associated with fireworks displays. Entry into this zone is prohibited unless authorized by the Captain of the Port or his duly appointed representative. DATES: This rule is effective from 9 p.m. (local) on July 3, 2006 through 11 p.m. (local) on July 3, 2006. ADDRESSES: Documents indicated in this preamble as being available in the docket, are part of docket CGD09-06-078 and are available for inspection or copying at U.S. Coast Guard Sector Lake Michigan, 2420 South Lincoln Memorial Drive, Milwaukee, WI 53207 between 7 a.m. and 3:30 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Chief Warrant Officer Brad Hinken, Sector Lake Michigan,
(414)747-7154. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. The permit application was not submitted in time to allow for publication of an NPRM followed by a temporary final rule. Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days from the date of publication. Any delay of the effective date of this rule would be contrary to the public interest by exposing the public to the known dangers associated with fireworks displays. Background and Purpose This safety zone is necessary to ensure the safety of the public and boating traffic in the Pentwater area during this event. This safety zone is intended to restrict vessel traffic from a portion of Lake Michigan in Pentwater. The size of the zone was determined by fireworks shell size and previous experiences in the Captain of the Port Lake Michigan zone and local knowledge about wind, waves, and currents in this particular area. Discussion of Rule The safety zone will encompass all waters of Lake Michigan within a 1000-foot radius of the fireworks launching site located on the north breakwater in approximate position 43°46.56′ N and 086°26.38′ W (NAD 83). All persons and vessels shall comply with the instructions of the Captain of the Port Lake Michigan or his designated on scene patrol personnel. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Lake Michigan or his designated on scene representative. The Captain of the Port Lake Michigan may be contacted via VHF Channel 16. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security. We expect the economic impact of this rule to be so minimal that a full Regulatory Evaluation under the regulatory policies and procedures of DHS is unnecessary. This determination is based upon the size and location of the safety zone within the waterway. Vessels will only be restricted from the safety zone for a short period of time. Vessels may transit through the safety zone with permission from the Captain of the Port Lake Michigan or his designated on-scene patrol commander. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This rule will affect the following entities, some of which may be small entities: The owners or operators of vessels intending to transit or anchor near Pentwater, MI, within the safety zone. This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: This rule will only be in effect for two hours. Vessel traffic may enter or transit through the safety zone with the permission of the Captain of the Port Lake Michigan or his designated on-scene representative. Before the effective period, we will issue maritime advisories and ensure they are widely available to users of Lake Michigan. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small entities in understanding the rule so that they can better evaluate its effects on them and participate in the rulemaking process. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance; please contact Coast Guard Sector Lake Michigan (See ADDRESSES ). Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local government and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not concern an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments 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. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedure; and related management system practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD, which guides the Coast Guard in complying with the National Environmental Policy Act of 1969
(NEPA)(42 U.S.C. 4321-4370f), and have made a determination that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, we believe that this rule should be categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. This event establishes a safety zone therefore paragraph (34)(g) of the Instruction applies. A final “Environmental Analysis Check List” and a final “Categorical Exclusion Determination” are available in the docket where indicated under ADDRESSES . List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, and Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. 2. A new temporary § 165.T09-078 is added to read as follows: § 165.T09-078 Safety Zone; Pentwater July 3rd Fireworks, Pentwater, Michigan.
(a)*Location.* The following area is a safety zone: All waters of Lake Michigan within a 1000-foot radius of the fireworks launching site located on the north breakwater in approximate position 43°−46.56′ N and 086°−26.38′ W (NAD 83).
(b)*Effective period.* This rule is effective from 9 p.m. (local) on July 3, 2006 until 11 p.m. (local) on July 3, 2006.
(c)*Regulations.* In accordance with the general regulations in 33 CFR 165.23 of this part, entry into this zone is subject to the following requirements:
(1)This safety zone is closed to all marine traffic, except as may be permitted by the Captain of the Port or his duly appointed representative.
(2)The “duly appointed representative” of the Captain of the Port is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Lake Michigan to act on his behalf. The representative of the Captain of the Port will be aboard either a Coast Guard or Coast Guard Auxiliary vessel.
(3)Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port or his representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone shall comply with all directions given to them by the Captain of the Port or his duly appointed representative.
(4)The Captain of the Port may be contacted by telephone via the Sector Lake Michigan Operations Center at
(414)747-7182. Vessels assisting in the enforcement of the safety zone may be contacted on VHF-FM channel 16. Vessel operators may determine the restrictions in effect for the safety zone by coming alongside a vessel patrolling the perimeter of the safety zone.
(5)Coast Guard Sector Lake Michigan will issue a Marine Safety Information Broadcast Notice to Mariners to notify the maritime community of the safety zone and restriction imposed. Dated: June 22, 2006. S.P. LaRochelle, Captain, U.S. Coast Guard, Captain of the Port Sector Lake Michigan. [FR Doc. E6-10321 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-071] RIN 1625-AA00 Safety Zone; Mineola Bay Fireworks, Fox Lake, IL AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone for the Mineola Bay Fireworks Display in Fox Lake, IL on July 1, 2006. The safety zone is necessary to protect vessels and spectators from potential airborne hazards during a planned fireworks display. This safety zone is intended to restrict vessels from a portion of Mineola Bay, Fox Lake, IL. DATES: This temporary final rule is effective from 9:30 p.m. (local) until 10 p.m. (local) on July 1, 2006. ADDRESSES: Documents indicated in this preamble as being available in the docket, are part of docket [CDG09-06-071] and are available for inspection or copying at Marine Safety Unit Chicago, 215 W. 83rd Street, Suite D, Burr Ridge, Illinois 60527, between 7:30 a.m. and 4 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: MST1 Franklin Spedoske, U.S. Coast Guard Marine Safety Unit Chicago, at
(630)986-2155. Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. The permit application was not received in time to publish an NPRM followed by a final rule before the effective date. Under 5 U.S.C. 553(d)(3), good cause exists for making this rule effective less than 30 days after publication in the **Federal Register** . Delaying this rule would be contrary to the public interest of ensuring the safety of spectators and vessels during this event, and immediate action is necessary to prevent possible loss of life or property. The Coast Guard has not received any complaints or negative comments previously with regard to this event. Background and Purpose A temporary safety zone is necessary to ensure the safety of vessels and spectators from the hazards associated with fireworks display. Based on the explosive hazard of fireworks, the Captain of the Port Lake Michigan has determined firework launches in close proximity to watercraft pose significant risks to public safety and property. The likely combination of large numbers of recreational vessels, congested waterways, punctuated by bright flashes of light, alcohol use, and debris falling into the water could easily result in serious injuries or fatalities. Establishing a safety zone to control vessel movement around the location of the launch platform will help ensure the safety of persons and property of these events and help minimize the associated risks. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Lake Michigan or his designated on-scene representative and may be contacted via VHF radio Channel 16. Discussion of Rule A temporary safety zone is necessary to ensure the safety of spectators and vessels during the setup, loading and launching of a fireworks display in conjunction with the Mineola Bay Fireworks display. The fireworks display will occur between 9:30 p.m. (local) and 10 p.m. (local) on July 1, 2006. The safety zone will encompass all waters and adjacent shoreline of Mineola Bay bounded by the arc of a circle with a radius of 600-feet with its center in the approximate position 42°23′45″ N; 088°10′05″ W. These coordinates are based upon North American Datum 1983 (NAD 1983). The size of this zone was determined using the National Fire Prevention Association guidelines and local knowledge concerning wind, waves, and currents. All persons and vessels shall comply with the instructions of the Coast Guard Captain of the Port or the designated on-scene representative. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Lake Michigan or his designated on-scene representative. The Captain of the Port or his designated on-scene representative may be contacted via VHF Channel 16. Regulatory Evaluation This temporary rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866 and does not require an assessment of potential costs and benefits under section 6(a)(3) of that order. The Office of Management and Budget has not reviewed it under that order. It is not significant under the regulatory policies and procedures of the Department of Homeland Security
(DHS)(44 FR 11040; February 26, 1979). The Coast Guard expects the economic impact of this proposal to be so minimal that a full Regulatory Evaluation under paragraph 10(e) of the regulatory policies and procedures of DHS is unnecessary. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: This rule will be in effect from 9:30 p.m. (local) until 10 p.m. (local) on July 1, 2006 for one event. In the event that this temporary safety zone affects shipping, commercial vessels may request permission from the Captain of the Port Lake Michigan to transit through the safety zone. The Coast Guard will give notice to the public via a Broadcast to Mariners that the regulation is in effect. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offered to assist small entities in understanding the rule so that they could better evaluate its effects on them and participate in the rulemaking process. Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions, call 1-888-REG-FAIR (1-888-734-3247). Collection of Information This rule contains no information collection requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not effect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not create an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments 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. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. It has not been designated by the Administrator of the Office of Information and Regulatory Affairs as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD and Department of Homeland Security Management Directive 5100.1, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969
(NEPA)(42 U.S.C. 4321-4370f), and have concluded that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, this rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. This rule fits the category from paragraph (34)(g) because it establishes a safety zone. A final “Environmental Analysis Check List” and a final “Categorical Exclusion Determination” are available in the docket where indicated under ADDRESSES . List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for Part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1 2. A new temporary safety zone § 165.T09-071 is added to read as follows: § 165.T09-071 Safety Zone; Mineola Bay Fireworks, Fox Lake, IL.
(a)*Location* . The following is a safety zone: all waters and adjacent shoreline of Mineola Bay bounded by the arc of a circle with a radius of 600-feet with its center in the approximate position 42°23′45″ N, 088°10′05″ W (NAD 1983).
(b)*Definitions* . The following definitions apply to this section: *Designated on-scene representative* means Coast Guard Patrol Commanders including Coast Guard coxswains, petty officers, and other officers operating Coast Guard vessels, and federal, state, and local officers designated by or assisting the Captain of the Port (COTP), Buffalo, New York, in the enforcement of regulated navigation areas and safety and security zones.
(c)*Effective time and date* . This rule is effective from 9:30 p.m. (local) until 10 p.m. (local) on July 1, 2006.
(d)*Regulations* . In accordance with § 165.23, entry into this zone is prohibited unless authorized by the Coast Guard Captain of the Port, Lake Michigan, or the designated on scene representative. Section 165.23 also contains other general requirements. Dated: June 22, 2006. S.P. LaRochelle, Captain, U.S. Coast Guard, Captain of the Port Sector Lake Michigan. [FR Doc. E6-10319 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-070] RIN 1625-AA00 Safety Zone; Ship and Shore Festival Fireworks, Lake Michigan, New Buffalo, MI AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone in Lake Michigan, New Buffalo, MI, for the Ship and Shore Festival Fireworks on July 2, 2006. This safety zone is needed to protect participants and spectators from the hazards associated with fireworks displays. Entry into this zone is prohibited unless authorized by the Captain of the Port or his duly appointed representative. DATES: This rule is effective from 9 p.m. (local) on July 2, 2006 through 11 p.m. (local) on July 2, 2006. ADDRESSES: Documents indicated in this preamble as being available in the docket, are part of docket CGD09-06-070 and are available for inspection or copying at U.S. Coast Guard Sector Lake Michigan, 2420 South Lincoln Memorial Drive, Milwaukee, WI 53207 between 7 a.m. and 3:30 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Chief Warrant Officer Brad Hinken, Sector Lake Michigan,
(414)747-7154. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. The permit application was not submitted in time to allow for publication of an NPRM followed by a temporary final rule. Under 5 U.S.C. 553(d)(3), the Coast Guard also finds that good cause exists for making this rule effective less than 30 days from the date of publication. Any delay of the effective date of this rule would be contrary to the public interest by exposing the public to the known dangers associated with fireworks displays. Background and Purpose This temporary safety zone is necessary to ensure the safety of vessels and spectators from hazards associated with a fireworks display. Based on accidents that have occurred in other Captain of the Port zones, and the explosive hazards of fireworks, the Captain of the Port Lake Michigan has determined fireworks launches in close proximity to watercraft pose significant risk to public safety and property. The likely combination of large numbers of recreation vessels, congested waterways, darkness punctuated by bright flashes of light, alcohol use, and debris falling into the water could easily result in serious injuries or fatalities. Establishing a safety zone to control vessel movement around the location of the launch platform will help ensure the safety of persons and property at these events and help minimize the associated risks. This safety zone is necessary to ensure the safety of the public and boating traffic in the New Buffalo area during this event. The size of the zone was determined by fireworks shell size and previous experiences in the Captain of the Port Lake Michigan zone and local knowledge about wind, waves, and currents in this particular area. Discussion of Rule A temporary safety zone is necessary to ensure the safety of spectators and vessels during the setup, loading and launching of a fireworks display in conjunction with the Ship and Shore Festival Fireworks display. The fireworks display will occur between 9 p.m. (local) and 11 p.m. (local) on July 2, 2006. The safety zone will encompass all waters of Lake Michigan and New Buffalo Harbor within a 1000-foot radius of the fireworks launching site located approximately 600-feet north of the north pier in position 41-48.15′ N and 086-44.81′ W (NAD 83). All persons and vessels shall comply with the instructions of the Captain of the Port Lake Michigan or his designated on scene patrol personnel. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Lake Michigan or his designated on scene representative. The Captain of the Port Lake Michigan may be contacted via VHF Channel 16. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. We expect the economic impact of this rule to be so minimal that a full Regulatory Evaluation is unnecessary. This determination is based upon the size and location of the safety zone within the waterway. Vessels will only be restricted from the safety zone for a short period of time. Vessels may transit through the safety zone with permission from the Captain of the Port Lake Michigan or his designated on-scene patrol commander. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This rule will affect the following entities, some of which may be small entities: The owners or operators of vessels intending to transit or anchor near New Buffalo, MI, within the safety zone. This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: This rule will only be in effect for two hours. Vessel traffic may enter or transit through the safety zone with the permission of the Captain of the Port Lake Michigan or his designated on-scene representative. Before the effective period, we will issue maritime advisories and ensure they are widely available to users of New Buffalo Harbor. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding the rule so that they can better evaluate its effects on them and participate in the rulemaking process. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance; please contact Coast Guard Sector Lake Michigan (See ADDRESSES .) Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local government and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not concern an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments 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. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedure; and related management system practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD, which guides the Coast Guard in complying with the National Environmental Policy Act of 1969
(NEPA)(42 U.S.C. 4321-4370f), and have concluded that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, this rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. Under figure 2-1, paragraph 34(g), of the Instruction, an “Environmental Analysis Check List” and a “Categorical Exclusion Determination” are available in the docket where indicated under ADDRESSES . List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR Part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. 2. A new temporary § 165.T09-070 is added to read as follows: § 165.T09-070 Safety Zone; Ship and Shore Festival Fireworks New Buffalo, Michigan.
(a)*Location.* The following area is a safety zone: All waters of Lake Michigan and New Buffalo Harbor within a 1000-foot radius of the fireworks launching site located approximately 600-feet north of the north pier in position 41°-48.15′ N and 086°-44.81′ W (NAD 83).
(b)*Effective period.* This rule is effective from 9 p.m. (local) on July 2, 2006 until 11 p.m. (local) on July 2, 2006.
(c)*Regulations.* In accordance with the general regulations in 33 CFR 165.23 of this part, entry into this zone is subject to the following requirements:
(1)This safety zone is closed to all marine traffic, except as may be permitted by the Captain of the Port or his duly appointed representative.
(2)The “duly appointed representative” of the Captain of the Port is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Lake Michigan to act on his behalf. The representative of the Captain of the Port will be aboard either a Coast Guard or Coast Guard Auxiliary vessel.
(3)Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port or his representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone shall comply with all directions given to them by the Captain of the Port or his representative.
(4)The Captain of the Port may be contacted by telephone via the Sector Lake Michigan Operations Center at
(414)747-7182. Vessels assisting in the enforcement of the safety zone may be contacted on VHF-FM channel 16. Vessel operators may determine the restrictions in effect for the safety zone by coming alongside a vessel patrolling the perimeter of the safety zone.
(5)Coast Guard Sector Lake Michigan will issue a Marine Safety Information Broadcast Notice to Mariners to notify the maritime community of the safety zone and restriction imposed. Dated: June 22, 2006. S.P. LaRochelle, Captain, U.S. Coast Guard, Captain of the Port Sector Lake Michigan. [FR Doc. E6-10317 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [CGD09-06-074] RIN 1625-AA00 Safety Zone; Celebration Freedom Fireworks, Lake Macatawa, Holland, MI AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone in Lake Macatawa, Holland, MI, on July 1, 2006 for the Celebration Freedom Fireworks. This safety zone is needed to protect participants and spectators from the hazards associated with fireworks Displays. Entry into this zone is prohibited unless authorized by the Captain of the Port or his duly appointed representative. DATES: This rule is effective from 9 p.m. (local) on July 1, 2006 through 11:30 p.m. (local) on July 3, 2006. ADDRESSES: Documents indicated in this preamble as being available in the docket, are part of docket CGD09-06-074 and are available for inspection or copying at U.S. Coast Guard Sector Lake Michigan, 2420 South Lincoln Memorial Drive, Milwaukee, WI 53207 between 7 a.m. and 3:30 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Chief Warrant Officer Brad Hinken, Sector Lake Michigan,
(414)747-7154. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking
(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. The permit application was not submitted in time to allow for publication of an NPRM followed by a temporary final rule before the effective date. Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days from the date of publication. Any delay of the effective date of this rule would be contrary to the public interest by exposing the public to the known dangers associated with fireworks displays. Background and Purpose This temporary safety zone is necessary to ensure the safety of vessels and spectators from hazards associated with a fireworks display. Based on accidents that have occurred in other Captain of the Port zones, and the explosive hazards of fireworks, the Captain of the Port Lake Michigan has determined fireworks launches in close proximity to watercraft pose significant risk to public safety and property. The likely combination of large numbers of recreation vessels, congested waterways, darkness punctuated by bright flashes of light, alcohol use, and debris falling into the water could easily result in serious injuries or fatalities. Establishing a safety zone to control vessel movement around the location of the launch platform will help ensure the safety of persons and property at these events and help minimize the associated risks. This safety zone is necessary to ensure the safety of the public and boating traffic in the Holland, Michigan area during this event. This safety zone is intended to restrict vessel traffic from a portion of the Lake Macatawa in Holland, Michigan. The size of the zone was determined by fireworks shell size and previous experiences in the Captain of the Port Lake Michigan zone and local knowledge about wind, waves, and currents in this particular area. Discussion of Rule A temporary safety zone is necessary to ensure the safety of spectators and vessels during the setup, loading and launching of a fireworks display in conjunction with the Celebration Fireworks display. The fireworks display will occur between 9 p.m. (local) and 11:30 p.m. (local) on July 1, 2006 with alternate rain date of July 3, 2006. The safety zone will encompass all waters of Lake Macatawa, Holland, MI. within a 1000′ radius of the fireworks launching site located at Kollen Park, in position 42°-47′20″ N and 086°-07′12″ W (NAD 83). All persons and vessels shall comply with the instructions of the Captain of the Port Lake Michigan or his designated on-scene patrol personnel. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Lake Michigan or his designated on scene representative. The Captain of the Port Lake Michigan may be contacted via VHF Channel 16 or via telephone 414-474-7182. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security. We expect the economic impact of this rule to be so minimal that a full Regulatory Evaluation under the regulatory policies and procedures of DHS is unnecessary. This determination is based upon the size and location of the safety zone within the waterway. Vessels will only be restricted from the safety zone for a short period of time. Vessels may transit through the safety zone with permission from the Captain of the Port Lake Michigan or his designated on-scene patrol commander. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This rule will affect the following entities, some of which may be small entities: The owners or operators of vessels intending to transit or anchor near Holland, MI, within the safety zone. This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: This rule will only be in effect for two and one-half hours. Vessel traffic may enter or transit through the safety zone with the permission of the Captain of the Port Lake Michigan or his designated on scene representative. Before the effective period, we will issue maritime advisories and ensure they are widely available to users of Lake Macatawa. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small entities in understanding the rule so that they can better evaluate its effects on them and participate in the rulemaking process. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance; please contact Coast Guard Sector Lake Michigan (See ADDRESSES ). Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local government and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule would not result in such expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not concern an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments 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. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedure; and related management system practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD, which guides the Coast Guard in complying with the National Environmental Policy Act of 1969
(NEPA)(42 U.S.C. 4321-4370f), and have made a determination that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, we believe that this rule should be categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. This event establishes a safety zone therefore paragraph (34)(g) of the Instruction applies. A final “Environmental Analysis Check List” and a final “Categorical Exclusion Determination” are available in the docket where indicated under ADDRESSES . List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, and Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. 2. A new temporary § 165.T09-074 is added to read as follows: § 165.T09-074 Safety Zone; Celebration Freedom Fireworks, Lake Macatawa, Holland, Michigan.
(a)*Location.* The following area is a safety zone: all waters of Lake Macatawa, Holland, MI. within a 1000′ radius of the fireworks launching site located at Kollen Park, in position 42°47′20″ N and 086°07′12″ W (NAD 83).
(b)*Effective period.* This rule is effective from 9:00 p.m. (local) on July 1, 2006 through 11:30 p.m. (local) on July 3, 2006.
(c)*Enforcement period.* This rule will be enforced from 9 p.m. (local) on July 1, 2006 until 11:30 p.m. (local) on July 1, 2006. The alternate rain date for enforcement of this rule is from 9 p.m. (local) on July 3, 2006 through 11:30 p.m. (local) on July 3, 2006.
(d)*Regulations.* In accordance with the general regulations in 33 CFR 165.23 of this part, entry into this zone is subject to the following requirements:
(1)This safety zone is closed to all marine traffic, except as may be permitted by the Captain of the Port or his duly appointed representative.
(2)The “duly appointed representative” of the Captain of the Port is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Lake Michigan to act on his behalf. The representative of the Captain of the Port will be aboard either a Coast Guard or Coast Guard Auxiliary vessel.
(3)Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port or his representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone shall comply with all directions given to them by the Captain of the Port or his representative.
(4)The Captain of the Port may be contacted by telephone via the Sector Lake Michigan Operations Center at
(414)747-7182. Vessels assisting in the enforcement of the safety zone may be contacted on VHF-FM channel 16. Vessel operators may determine the restrictions in effect for the safety zone by coming alongside a vessel patrolling the perimeter of the safety zone.
(5)Coast Guard Sector Lake Michigan will issue a Marine Safety Information Broadcast Notice to Mariners to notify the maritime community of the safety zone and restriction imposed. Dated: June 22, 2006. S.P. LaRochelle, Captain, U.S. Coast Guard, Captain of the Port Sector Lake Michigan. [FR Doc. E6-10326 Filed 6-30-06; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 660 [Docket No.051014263-6028-03; I.D. 062706B] Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; Specifications and Management Measures; Inseason Adjustments AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Inseason adjustments to groundfish management measures; request for comments. SUMMARY: NMFS announces changes to management measures in the commercial and recreational Pacific Coast groundfish fisheries. These actions, which are authorized by the Pacific Coast Groundfish Fishery Management Plan (FMP), are intended to allow fisheries to access more abundant groundfish stocks while protecting overfished and depleted stocks. DATES: Effective 0001 hours (local time) July 1, 2006. Comments on this rule will be accepted through August 2, 2006. ADDRESSES: You may submit comments, identified by I.D. 062706B, by any of the following methods: • E-mail: *GroundfishInseason9.nwr@noaa.gov* . Include I.D. 062706B in the subject line of the message. • Federal eRulemaking Portal: *www.regulations.gov* . Follow the instructions for submitting comments. • Mail: D. Robert Lohn, Administrator, Northwest Region, NMFS, Attn: Jamie Goen, 7600 Sand Point Way NE, Seattle, WA 98115-0070. • Fax: 206-526-6736, Attn: Jamie Goen. FOR FURTHER INFORMATION CONTACT: Jamie Goen (Northwest Region, NMFS), phone: 206-526-6150; fax: 206-526-6736; or e-mail: *jamie.goen@noaa.gov* . SUPPLEMENTARY INFORMATION: Electronic Access This **Federal Register** document is available on the Government Printing Office's website at: *www.gpoaccess.gov/fr/index.html* . Background information and documents are available at the Pacific Fishery Management Council's (Pacific Council's) website at: *www.pcouncil.org* . Background The Pacific Coast Groundfish FMP and its implementing regulations at Title 50 in the Code of Federal Regulations (CFR), part 660, subpart G, regulate fishing for over 80 species of groundfish off the coasts of Washington, Oregon, and California. Groundfish specifications and management measures are developed by the Pacific Council, and are implemented by NMFS. The specifications and management measures for 2005-2006 were codified in the CFR (50 CFR part 660, subpart G). They were published in the **Federal Register** as a proposed rule on September 21, 2004 (69 FR 56550), and as a final rule on December 23, 2004 (69 FR 77012). The final rule was subsequently amended on March 18, 2005 (70 FR 13118); March 30, 2005 (70 FR 16145); April 19, 2005 (70 FR 20304); May 3, 2005 (70 FR 22808); May 4, 2005 (70 FR 23040); May 5, 2005 (70 FR 23804); May 16, 2005 (70 FR 25789); May 19, 2005 (70 FR 28852); July 5, 2005 (70 FR 38596); August 22, 2005 (70 FR 48897); August 31, 2005 (70 FR 51682); October 5, 2005 (70 FR 58066); October 20, 2005 (70 FR 61063); October 24, 2005 (70 FR 61393); November 1, 2005 (70 FR 65861); and December 5, 2005 (70 FR 723850). Longer-term changes to the 2006 specifications and management measures were published in the **Federal Register** as a proposed rule on December 19, 2005 (70 FR 75115) and as a final rule on February 17, 2006 (71 FR 8489). The final rule was subsequently amended on March 27, 2006 (71 FR 10545), April 11, 2006 (71 FR 18227), April 26, 2006 (71 FR 24601), May 11, 2006 (71 FR 27408), May 22, 2006 (71 FR 29257), and June 1, 2006 (71 FR 31104). The changes to current groundfish management measures implemented by this action were recommended by the Pacific Council, in consultation with Pacific Coast Treaty Indian Tribes and the States of Washington, Oregon, and California, at its June 12-16, 2006, meeting in Foster City, CA. At that meeting, the Pacific Council recommended:
(1)allowing the lingcod commercial harvest guideline to be exceeded while staying within the OY;
(2)implementing a darkblotched rockfish bycatch limit for the commercial limited entry primary whiting fishery;
(3)modifying the limited entry trawl rockfish conservation areas
(RCAs)and trip limits north of 38° N. lat. and the non-groundfish trawl RCA between 40°10′ N. lat. and 38° N. lat. to protect darkblotched rockfish;
(4)announcing triggers for the catch of canary rockfish and petrale sole in the limited entry trawl fishery that would prompt NMFS to implement an inseason action between the June and September Pacific Council meetings;
(5)increasing the limited entry fixed gear and open access trip limit for deeper nearshore rockfish during September through October between 40°10′ N. lat. and 34°27′ N. lat.;
(6)modifying the recreational RCA boundaries south of 40°10′ N. lat.;
(7)increasing the recreational fishing season for the (rockfish, cabezon, and greenling complex)(RCG complex), lingcod and California scorpionfish between 36° N. lat. and 34°27′ N. lat. through October;
(8)increasing the recreational fishing season for California scorpionfish south of 34°27′ N. lat. to July-December;
(9)allowing the tribal fisheries to test gear modifications; and
(10)implementing tribal harvest targets for Dover sole and arrowtooth flounder that combine trip limits from July through December. Pacific Coast groundfish landings will be monitored throughout the year and further adjustments to trip limits or management measures will be made as necessary to allow achievement of, or to avoid exceeding, optimum yields (OYs). Lingcod Commercial Harvest Guidelines The 2006 commercial harvest guideline for lingcod of 214.7 mt is projected to be exceeded before the end of the year by approximately 135.3 mt. However, the anticipated total catch, 487 mt north of 42° N. lat. and 405.1 mt south of 42° N. lat, is not expected to exceed either of the lingcod OYs (1,801 mt north of 42° N. lat. and 612 mt south of 42° N. lat), or the coastwide ABC (2,716 mt). Allowing the lingcod commercial harvest guideline to be exceeded will prevent the commercial fishery from being unnecessarily constrained. Therefore, NMFS will not take action to constrain lingcod fisheries at this time, but will continue to monitor the fisheries to avoid risk of exceeding the lingcod OYs for the remainder of the year. Limited Entry Trawl Whiting Fishery Bycatch Limits for Darkblotched Rockfish Prior to the start of the 2006 whiting season, the projected catch of darkblotched rockfish by the non-tribal sectors of the whiting fishery (catcher-processors, motherships, and vessels delivering shoreside) was 16.2 mt. Since the start of the 2006 primary whiting season, higher than anticipated darkblotched rockfish catch has occurred in the shore-based and at-sea whiting fisheries. Data available on June 9, 2006, indicates that 30 mt of darkblotched rockfish could be taken by the non-tribal whiting sectors if the current catch rates continue throughout the season. The Pacific Council recommended a 25-mt darkblotched rockfish bycatch limit for the non-tribal whiting sectors to reduce the likelihood of the darkblotched rockfish OY being exceeded, and to reduce the risk of the whiting fishery affecting the seasons for other groundfish fisheries that encounter darkblotched rockfish. In the non-tribal sectors of the limited entry trawl whiting fishery, overfished species bycatch limits are currently in place for canary (4.7 mt) and widow rockfish (200 mt). A 25-mt bycatch limit for darkblotched rockfish in the non-tribal whiting fishery is not equivalent to a bycatch allocation. The non-tribal whiting fishery may not have the full 25 mt available to achieve the whiting OY if the catch of darkblotched rockfish in other fisheries is higher than projected. In addition to the non-tribal whiting fishery, higher than anticipated darkblotched rockfish catch has occurred in the limited entry bottom trawl fishery. Even with restrictions to the bottom trawl fishery to reduce darkblotched rockfish catch, there is still a risk that the darkblotched rockfish OY may be exceeded if the current darkblotched bycatch rate in the whiting fishery continues without a bycatch limit. Previously, the Pacific Council considered a bycatch limit for darkblotched rockfish at its March and April 2006 meetings. However, a limit was not adopted at that time for the following reasons: the need for whiting vessels to have flexibility to change fishing locations to avoid Chinook salmon, canary and widow rockfish; darkblotched rockfish encounters could increase if the fishery chose to operate in deeper waters to avoid Chinook salmon or overfished shelf species; the increased abundance of darkblotched rockfish as it nears the rebuilt stock level could also result in an increased bycatch rate for darkblotched rockfish; and, the past success of whiting fishery participants to modify their fishing behavior to avoid all species of concern. However, current catch of darkblotched rockfish in both the whiting and non-whiting fisheries is such that action should be taken to slow the catch of darkblotched rockfish. Therefore, the Pacific Council recommended and NMFS is implementing, a darkblotched rockfish bycatch limit of 25 mt for the non-tribal limited entry trawl whiting fishery. Limited Entry Trawl RCAs and Trip Limits North of 38° N. Higher than expected darkblotched rockfish catch early in the year is projected to result in the darkblotched rockfish OY being exceeded by late summer unless the non-whiting limited entry trawl fishery north of 38° N. lat. is constrained. Darkblotched rockfish catch is approximately 40-50 percent higher than what was projected at the start of the fishing year. Preseason projections in January 2006 had indicated that 80-90 mt of darkblotched rockfish would be taken by the end of June. However, current Pacific Fisheries Information Network (PacFIN) data indicates that 122 mt will be taken by the end of June 2006. If measures are not taken to constrain the non-whiting limited entry trawl fishery, the groundfish fishery as a whole (including the whiting fishery) is projected to take 284.1 mt of darkblotched rockfish through the end of the year, exceeding the 200 mt OY. Approximately 20-30 mt are needed for the period 6 (November-December) petrale fishery to occur. With an OY of 200 mt and a projected catch of 122 mt through the end of June, the total catch of darkblotched rockfish needs to be less than 170 mt through the end of October for the period 6 petrale fishery to occur. To slow the catch rate of darkblotched rockfish in the non-whiting limited entry trawl fishery, the Pacific Council recommended increasing the size of the RCA north of 38° N. lat. for July through December, and reducing cumulative limits for slope rockfish and splitnose rockfish, species that co-occur with darkblotched rockfish. The Pacific Council estimates that 165.6 mt of darkblotched rockfish will be caught through the end of the year by the non-whiting portions of the groundfish fishery as a result of these inseason actions, including the darkblotched rockfish that would be associated with a petrale sole fishery in period 6. However, if darkblotched rockfish mortality continues to be higher than projected or approaches the OY even with these inseason actions, there will not be an opportunity for a period 6 petrale fishery. In addition to increasing the size of the trawl RCAs, the Pacific Council recommended reducing trip limits for slope, darkblotched, and splitnose rockfish. Reducing these slope rockfish limits is intended to eliminate any incentive to target slope species and to reduce darkblotched rockfish catch. Even though slope species tend to be sparse seaward of 250-fm (457-m), some vessels are currently targeting the slope, darkblotched and splitnose rockfish trip limits and may continue to do so even with the seaward boundary of the trawl RCA extended out to a boundary line approximating 250 fm (457 m). Reducing the slope, darkblotched, and splitnose rockfish trip limits to 1,000 lb (454 kg) per 2 months is expected to eliminate the incentive to target these species, while allowing incidentally-caught amounts of these species to be retained. In addition, it should ensure an opportunity for a period 6 petrale sole fishery by reducing the mortality of darkblotched rockfish. The management measures affecting darkblotched rockfish are more restrictive north of 40°10′ N. lat. and less restrictive south of 38° N. lat., because darkblotched rockfish are less abundant in this southern portion of their range. Generally, the area between of 40°10′ N. lat. and 38° N. lat. is subject to transitional slope rockfish management measures, somewhere between the management measures north and south of this area. Inseason data for 2006 shows that darkblotched rockfish landings off California are approximately 6.7 mt south of 40°10′ N. lat. and approximately 8 mt north of 40°10′ N. lat. to the CA/OR border. Data provided by the California Department of Fish and Game
(CDFG)for the area between 40°10′ N. lat and 38° N. lat indicate that in 2005, 79 percent of darkblotched rockfish came from shallower than 200 fm (366 m), while the remaining amount came from 200-250 fm (366-457 m) (none deeper than 250 fm (457 m)). However, over a longer period of time, data indicated that 9 percent of the darkblotched rockfish catch was from waters deeper than 250 fm (457 m), approximately 20 percent was from 200-250 fm (366-457 m), and approximately 70 percent was from waters shallower than 200-fm (366-m). Because of the clear need to reduce darkblotched rockfish mortality to as low as possible, the Pacific Council decided against transitional management in this area for slope rockfish trip limits. The Pacific Council recommended that the slope rockfish trip limit reductions be applied to the area between 40°10′ N. lat and 38° N. lat. Moving the seaward line of the trawl RCA to deeper depths is predicted to result in an increase in trawl fishing effort in the areas shoreward of the RCA, potentially affecting other overfished species such as canary rockfish. The Pacific Council considered moving the shoreward trawl RCA boundary to protect overfished species, but this option generated a number of concerns from state management agencies, the coastal tribes, and coastal fishers. Among these concerns are Dungeness crab impacts in nearshore habitat, particularly during the summer when trawl mortality of soft-shelled molting crab is likely high. Additionally, the nearshore area is a nursery ground for juvenile flatfish and other groundfish species. Concentrating trawl effort in this area could increase mortalities on juvenile and unmarketable fish. Therefore, the Pacific Council recommended that the shoreward boundary of the RCA remain as previously scheduled, a boundary line approximating 100 fm (183 m) in July-August and 75 fm (137 m) in September-December north of 40°10′ N. lat., and a boundary line approximating 100 fm (183 m) in July-October and 75 fm (137 m) in November-December between 40°10′ N. lat. and 38° N. lat. Because of concerns that the catch of canary rockfish could increase over current projections and in order to try to accommodate the petrale fishery in period 6, the Pacific Council recommended inseason triggers for canary rockfish and petrale sole for NMFS to take action before the September 2006 Pacific Council meeting. (See next section for more detail on triggers.) Because the Dover sole, thornyheads, and sablefish
(DTS)fishery is projected to shift into deeper waters to protect darkblotched rockfish, raising the shortspine thornyhead trip limit is expected to reduce regulatory discards while still keeping the total catch of shortspine thornyhead within the 1,011-mt shortspine thornyhead commercial harvest guideline. NMFS will make the same changes to the seaward boundary of the open access non-groundfish trawl RCA south of 40°10′ N. lat. that it is making to the trawl RCA. Historically, the limited entry and open access trawl RCAs have been similar, except that the shoreward boundary of the open access non-groundfish trawl RCA for ridgeback prawn trawl does not move shoreward of a boundary line approximating 100 fm (183 m) south of 34°27′ N. lat. These RCAs are similar because trawl gear, whether limited entry groundfish trawl or open access non-groundfish trawl, tends to intercept overfished groundfish species. Therefore, the Pacific Council recommended, and NMFS is implementing the following RCA and trip limit changes for the limited entry trawl fishery:
(1)North of 40°10′ N. lat., move the seaward boundary of the trawl RCA from 200 fm (366 m) in July-December (with petrale sole modifications for the November-December period) to 250 fm (457 m) from July-December (with petrale sole modifications for the November-December period);
(2)north of 40°10′ N. lat., reduce minor slope and darkblotched rockfish trawl trip limits (large, small, and selective flatfish trawl) from 4,000 lb (1,814 kg) per 2 months to 1,000 lb (454 kg) per 2 months for July-December;
(3)north of 40°10′ N. lat., increase the shortspine thornyhead trip limit for large and small footrope trawl from 5,800 lb (2,631 kg) per 2 months to 7,500 lb (3,402 kg) per 2 months for July-October;
(4)between 38° N. lat and 40°10′ N. lat., move the seaward boundary of the trawl RCA (both limited entry trawl RCA and non-groundfish trawl RCA) from 150 fm (274 m) in July-December to 200 fm (366 m) in July-August, and to 250 fm (457 m) in September-December (with petrale sole modifications for the November-December period);
(5)between 38° N. lat and 40°10′ N. lat., reduce minor slope and darkblotched rockfish trawl trip limits from 8,000 lb (3,629 kg) per 2 months to 1,000 lb (454 kg) per 2 months for July-December;
(6)between 38° N. lat and 40°10′ N. lat., reduce splitnose rockfish trawl trip limits from 8,000 lb (3,629 kg) per 2 months to 1,000 lb (454 kg) per 2 months for July-December; and
(7)between 38° N. lat and 40°10′ N. lat., increase shortspine thornyhead trip limits from 4,900 lb (2,223 kg) per 2 months to 7,500 lb (3,402 kg) per 2 months for July-October. Inseason Triggers for the Limited Entry Trawl Fishery In recent years, there has been limited ability to respond to unexpected undesirable changes in harvest trends between the June and September Pacific Council meetings. By the September Pacific Council meeting, the Pacific Council must often recommend more drastic management measure changes to reverse higher than expected catch trends from the summer fisheries. Recommendations from the September Pacific Council meeting are implemented by NMFS via an inseason action effective at the beginning of October. As a mechanism to take action between meetings, if necessary in 2006, the Pacific Council recommended routine management measures that it would like NMFS to take if a specific undesirable harvest trends occur in the fishery between Pacific Council meetings. For example, if higher than projected catch rates of key species reach a pre-specified threshold, NMFS could respond by reducing trip limits or shifting RCA boundaries in keeping with recommendations made by the Pacific Council at its previous meeting. At its June 2006 meeting, the Pacific Council recommended this mechanism for addressing concern for the potential loss of the period 6 petrale fishery, and concern over potential effects on canary rockfish if trawl effort increases in areas shoreward of the RCA. Therefore, The Pacific Council recommended the following triggers and inseason actions:
(1)If the catch of canary rockfish in the limited entry bottom trawl sector is projected to reach 7.75 mt by the end of a month, NMFS will move the shoreward boundary of the RCA in to the shore north of 40°10′ N. lat. at the end of that month; and
(2)if the catch of petrale sole in the LE bottom trawl sector is projected to reach 2,000 mt (72 percent of the OY) by August 31, NMFS will reduce cumulative trip limits for petrale sole, “other flatfish” and English sole, and arrowtooth flounder for period 5 (September-October). Petrale sole trip limits for each type of bottom trawl gear and each area will be reduced by 8,000 lb (3,629 kg) per 2 months coastwide, and trip limits of “Other Flatfish” and English sole and arrowtooth flounder will also be reduced to 4 times the petrale sole limit if those limits are more than 4 times the petrale sole limit (e.g., the petrale sole limit could be 2,000 lb (907 kg), and the “other flatfish” and English sole limit 8,000 lb (3,629 kg).). NMFS will track landings and intends to implement these management measures if the triggers are met. Limited Entry Fixed Gear and Open Access Deeper Nearshore Rockfish Trip Limits California Department of Fish and Game
(CDFG)recommended, that the trip limit for deeper nearshore rockfish between 40°10′ N. lat. and 34°27′ N. lat. be increased to 500 lb (227 kg) per 2 months during September-October, which matches the trip limit for all other open periods in that area. CDFG manages its nearshore fishery with State harvest targets that are more conservative than Federal limits. A review of landings indicate that the deeper nearshore rockfish state harvest target is behind projections for this year. With this inseason adjustment, the deeper nearshore rockfish state harvest target is projected to be achieved by the end of December 2006. This fishery will continue to be monitored and further changes made, if necessary. Because catch of deeper nearshore rockfish is currently behind projections and there are not expected to be increased impacts on overfished species as a result of this action, the Pacific Council recommended increasing the deeper nearshore rockfish trip limit in this area. Therefore, the Pacific Council recommended and NMFS is implementing, an increase in the deeper nearshore rockfish trip limits for limited entry fixed gear and open access fisheries between 40°10′ N. lat. and 34°27′ N. lat. from 400 lb (181 kg) per 2 months to 500 lb (227 kg) per 2 months during September-October. California Recreational RCAs and Seasons In 2005, NMFS implemented inseason changes to California′s recreational RCAs and seasons. These changes were based on 2004 California Recreational Fisheries Survey
(CRFS)data showing:
(1)that recreational harvest of overfished species was below California′s recreational harvest targets; and
(2)that CRFS improved California′s ability to monitor recreational fisheries inseason. The inseason action published in the **Federal Register** on May 4, 2005 (70 FR 23040), provided more recreational fishing opportunity while keeping projected impacts within recreational harvest targets. In March 2006, CRFS estimates on the recreational take for 2005 became available. These estimates indicated that even under the revised recreational management measures implemented through the March 2005 inseason action, California recreational harvest targets for overfished species were not exceeded and, for some species, catch was well below projected impacts. However, due to the shallow depth restrictions of 20 fm (37 m) between 40°10′ N. lat. and 36° N. lat., fishing pressure increased on nearshore groundfish species resulting in take that met or exceeded these species OYs or harvest targets. These results suggest that the 2006 recreational management measures could be further revised to allow for additional fishing opportunity for shelf species, such as vermillion rockfish, while reducing fishing pressure on nearshore groundfish species, such as nearshore rockfish and cabezon. In order to provide this additional opportunity while remaining within recreational harvest targets, CDFG recommended liberalizing RCAs south of 40°10′ N. lat. and liberalizing seasons for the RCG complex, lingcod, and California scorpionfish between 36° N. lat. and 34°27′ N. lat. Under CDFG′s proposal, their recreational model projects impacts on overfished species to be: 65 mt of bocaccio, 7.7 mt of canary rockfish, 7.7 mt of widow rockfish, 0.3 mt of cowcod, 262 mt of lingcod, and 1.5 mt of yelloweye rockfish. All projected catch estimates continue to remain within harvest targets, allocations and/or California harvest guidelines. In addition, CDFG recommended that NMFS take action to conform Federal regulations to state regulations for California scorpionfish in state waters. The seasons for California scorpionfish were changed in California State regulations on March 20, 2006, to make the seasons for California scorpionfish match those for the RCG complex and the recreational RCAs in state waters. The 2005 season was only 3 months long and resulted in landings well under the state harvest target. This action extends the 2006 season by 3 months. The additional projected take of California scorpionfish as a result of this action is expected to stay within the state harvest target. Therefore, CDFG recommended that NMFS take action to conform Federal regulations to state regulations for Federal waters to change the California scorpionfish season south of 34°27′ N. lat. from open October-December to open July-December. California's ability to track the fishery in a timely and accurate manner using CRFS and to take prompt inseason action later in the year to close the fishery if expected harvests exceed projections should minimize any risk to overfished species that may be associated with liberalizing the fishery. Therefore, the Pacific Council recommended, and NMFS is implementing, the following recreational RCA and season changes: (1between 40°10′ N. lat. and 36° N. lat., move the shoreward boundary of the recreational RCA from the 20-fm (37-m) depth contour to a boundary line approximating 30 fm (55 m) in July-December;
(2)between 36° N. lat. and 34°27′ N. lat., open the area shoreward of the recreational RCA through the month of October (i.e., the recreational RCA extends from a boundary line approximating the 40-fm (73-m) depth contour to the exclusive economic zone
(EEZ)from May-October);
(3)south of 34°27′ N. lat., move the shoreward boundary of the recreational RCA from a boundary line approximating 30-fm (55-m) depth contour to a boundary line approximating 60 fm (110 m) in September-October (i.e., closed between 60 fm (110 m) and the EEZ in March-December);
(4)between 36° N. lat. and 34°27′ N. lat., extend the open season for RCG complex, lingcod, and California scorpionfish through the month of October; and
(5)south of 34°27′ N. lat., extend the open season for California scorpionfish from October-December to July-December. Tribal Trawl Fisheries The Makah Tribe proposed examining the effectiveness of different trawl gear configurations combined with area management to reduce impacts on overfished species and Pacific halibut. The Makah Tribe proposed testing small footrope trawl gear compared to pineapple - cutback headrope trawl gear (aka: selective flatfish trawl gear) for differences in bycatch and plans to provide a report on its efforts to the Pacific Council in November 2006. To complete this work the Makah Tribe would create combined harvest targets for its trawl fleet for Dover sole and arrowtooth flounder that are equivalent to the limited entry cumulative limits specified for periods 4, 5, and 6 (July-December) which were in place at the beginning of the year. When multiplied by the number of vessels in the fleet, 10, this represents a total fleet harvest target of 476.3 mt (1,050,000 lb) for Dover sole and 1360.8 mt (3,000,000 lb) for arrowtooth flounder. This proposal would give the Makah Tribe more flexibility to harvest more abundant species, such as Dover sole and arrowtooth flounder, while keeping incidental catch of overfished species low, namely Pacific ocean perch, canary rockfish, widow rockfish and darkblotched rockfish. These changes are not expected to result in any OYs being exceeded. Therefore, the Pacific Council recommended and NMFS is implementing a tribal harvest target of 1360.8 mt for Dover sole and 476.3 mt for arrowtooth flounder for the remainder of 2006 to replace the vessel specific trip limits for these species. Classification These actions are taken under the authority of 50 CFR 660.370(c) and are exempt from review under Executive Order 12866. These actions are authorized by the Pacific Coast groundfish FMP and its implementing regulations, and are based on the most recent data available. The aggregate data upon which these actions are based are available for public inspection at the Office of the Administrator, Northwest Region, NMFS, (see ADDRESSES ) during business hours. 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. The data upon which these recommendations were based was provided to the Pacific Council, and the Pacific Council made its recommendations at its June 12-16, 2006, meeting in Foster City, CA. There was not sufficient time after that meeting to draft this notice and undergo proposed and final rulemaking before these actions need to be in effect at the start of the next cumulative limit period, July 1, 2006, as explained below. For the actions to be implemented in this notice, prior notice and opportunity for comment would be impracticable because affording the time necessary for prior notice and opportunity for public comment would impede the Agency′s function of managing fisheries using the best available science to approach without exceeding the OYs for federally managed species. The adjustments to management measures in this document affect commercial and recreational groundfish fisheries. Changes to the limited entry trawl fishery must be implemented in a timely manner by July 1, 2006, to reduce mortality of darkblotched rockfish, an overfished species. Changes to the recreational fishery must be implemented by July 1, 2006, in order to provide opportunities for anglers to catch groundfish within harvest targets while reducing the effects on nearshore stocks. Changes to the tribal trawl fisheries must be implemented in a timely manner by July 1, 2006, in order to allow the Makah Tribe to provide an opportunity for fishers to test gear modifications to reduce catch of overfished species in 2006. Delaying any of these changes would keep management measures in place that are not based on the best available data and which could lead to early closures of the fishery if harvest of groundfish exceeds levels projected for 2006 and that deny fishermen access to available harvest. This would impair achievement of one of the Pacific Coast Groundfish FMP objectives of providing for year-round harvest opportunities or extending fishing opportunities as long as practicable during the fishing year. For these reasons, good cause also exists to waive the 30 day delay in effectiveness requirement under 5 U.S.C. 553 (d)(3). List of Subjects in 50 CFR Part 660 Fisheries, Fishing, Indian fisheries. Dated: June 27, 2006. James P. Burgess, Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service. For the reasons set out in the preamble, 50 CFR part 660 is amended as follows: PART 660—FISHERIES OFF WEST COAST STATES 1. The authority citation for part 660 continues to read as follows: Authority: 16 U.S.C. 1801 *et seq.* 2. In § 660.373, paragraph (b)(4) is revised to read as follows: § 660.373 Pacific whiting (whiting) fishery management.
(b)* * *
(4)2005 2006 bycatch limits in the whiting fishery. The bycatch limits for the whiting fishery may be used inseason to close a sector or sectors of the whiting fishery to achieve the rebuilding of an overfished or depleted stock, under routine management measure authority at § 660.370 (c)(1)(ii). These limits are routine management measures under § 660.370
(c)and, as such, may be adjusted inseason or may have new species added to the list of those with bycatch limits. For 2005, the whiting fishery bycatch limits for the sectors identified § 660.323(a) are 4.7 mt of canary rockfish and 212 mt of widow rockfish. For 2006, the whiting fishery bycatch limits are 4.7 mt of canary rockfish, 200 mt of widow rockfish, and 25 mt of darkblotched rockfish. 3. In § 660.384, paragraphs (c)(3)(i)(A)(2) through (4), (c)(3)(ii)(A)(3), (c)(3)(iii)(A)(3), and (c)(3)(v)(A)(2) are revised to read as follows: § 660.384 Recreational fishery management measures.
(c)* * *
(3)* * *
(i)* * *
(A)* * * ( *2* ) Between 40°10′ N. lat. and 36° N. lat., recreational fishing for all groundfish (except “other flatfish”) is prohibited seaward of the 30 fm (55 m) depth contour along the mainland coast and along islands and offshore seamounts from July 1 through December 31; and is closed entirely from January 1 through June 30 (i.e., prohibited seaward of the shoreline). Coordinates for the boundary line approximating the 30 fm (55 m) depth contour are specified in § 660.391. Closures around the Farallon Islands (see paragraph (c)(3)(i)(C) of this section) and Cordell Banks (see paragraph (c)(3)(i)(D) of this section) also apply in this area. ( *3* ) Between 36° N. lat. and 34°27′ N. lat., recreational fishing for all groundfish (except “other flatfish” as specified in paragraph (c)(3)(iv) of this section) is prohibited seaward of a boundary line approximating the 40 fm (73 m) depth contour along the mainland coast and along islands and offshore seamounts from May 1 through October 31; and is closed entirely from January 1 through April 30 and from November 1 through December 31 (i.e., prohibited seaward of the shoreline). Coordinates for the boundary line approximating the 40 fm (73 m) depth contour are specified in § 660.391. ( *4* ) South of 34°27′ N. lat., recreational fishing for all groundfish (except California scorpionfish as specified below in this paragraph and in paragraph
(v)and “other flatfish” as specified in paragraph (c)(3)(iv) of this section) is prohibited seaward of a boundary line approximating the 60 fm (110 m) depth contour from March 1 through December 31 along the mainland coast and along islands and offshore seamounts; except in the CCAs where fishing is prohibited seaward of the 20 fm (37 m) depth contour when the fishing season is open (see paragraph (c)(3)(i)(B) of this section). Recreational fishing for all groundfish (except “other flatfish”) is closed entirely from January 1 through February 28 (i.e., prohibited seaward of the shoreline). Recreational fishing for California scorpionfish south of 34°27′ N. lat. is prohibited seaward of a boundary line approximating the 60 fm (110 m) depth contour from July 1 through December 31, except in the CCAs where fishing is prohibited seaward of the 20 fm (37 m) depth contour when the fishing season is open. Recreational fishing for California scorpionfish south of 34°27′ N. lat. is closed entirely from January 1 through June 30 (i.e., prohibited seaward of the shoreline). Coordinates for the boundary line approximating the 60 fm (110 m) depth contour are specified in § 660.392.
(ii)* * *
(A)* * * ( *3* ) Between 36° N. lat. and 34°27′ N. lat., recreational fishing for the RCG Complex is open from May 1 through October 31 (i.e., it′s closed from January 1 through April 30 and from November 1 through December 31).
(iii)* * *
(A)* * * ( *3* ) Between 36° N. lat. and 34°27′ N. lat., recreational fishing for lingcod is open from May 1 through October 31 (i.e., it′s closed from January 1 through April 30 and from November 1 through December 31).
(v)* * *
(A)* * * ( *2* ) Between 36° N. lat. and 34°27′ N. lat., recreational fishing for California scorpionfish is open from May 1 through October 31 (i.e., it′s closed from January 1 through April 30 and from November 1 through December 31). ( *3* ) South of 34°27.00′ N. lat., recreational fishing for California scorpionfish is open from July 1 through December 31 (i.e., it′s closed from January 1 through June 30). 4. In § 660.385, paragraph
(d)is revised to read as follows: § 660.385 Washington coastal tribal fisheries management measures.
(d)*Flatfish and other fish.* Treaty fishing vessels using bottom trawl gear are subject to the limits applicable to the non-tribal limited entry trawl fishery for English sole, rex sole, and other flatfish that are published at the beginning of the year. For Dover sole and arrowtooth flounder from July-December 2006, the Makah Tribe will manage its fishery to a harvest target of 476.3 mt for Dover sole and 1360.8 mt for arrowtooth flounder. Treaty fishing vessels are restricted to a 50,000 lb (22,680 kg) per 2 month limit for petrale sole for the entire year. 5. In part 660, subpart G, Table 3 (North and South), Table 4 (South), and Table 5 (South) are revised to read as follows: BILLING CODE 3510-22-S ER03JY06.000 ER03JY06.001 ER03JY06.002 ER03JY06.003 ER03JY06.004 ER03JY06.005 ER03JY06.006 ER03JY06.007 ER03JY06.008 [FR Doc. 06-5957 Filed 6-30-06; 8:45 am]
Connectionstraces to 38
Traces to 38 documents
U.S. Code
23 references not yet in our index
  • 17 CFR 17
  • 17 CFR 18
  • Pub. L. 106-554
  • 114 Stat. 2763
  • 17 CFR 38
  • 17 CFR 37
  • 17 CFR 36
  • Pub. L. 104-13
  • 17 CFR 1
  • 17 CFR 15
  • 17 CFR 16
  • 17 CFR 19
  • 17 CFR 21
  • 33 CFR 165
  • 5 USC 601-612
  • Pub. L. 104-121
  • 44 USC 3501-3520
  • 2 USC 1531-1538
  • 42 USC 4321-4370f
  • 33 USC 1231
  • Pub. L. 107-295
  • 50 CFR 660
  • 50 CFR 660.370(c)
Citation graph
cites case law
Unknown
Final rules
U.S.C.§ 1
U.S.C.§ 6a
U.S.C.§ 6c
U.S.C.§ 6g
U.S.C.§ 6i
U.S.C.§ 12a
U.S.C.§ 5
C.F.R.§ 15.00
C.F.R.§ 17.00
Cite17 CFR 17
Cite17 CFR 18
Pub. L.Pub. L. 106-554
Cites 61 · showing 12Cited by 0 across 0 sources
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