This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

37450 

Vol. 83, No. 148 

Wednesday, August 1, 2018 

1 16 U.S.C. 825d(b) (2012). 

2However, section 305(b)(2) of the FPA, 16 U.S.C. 

825d(b)(2), exempts from this prohibition certain 

interlocks between public utilities and a financial 

institution that is authorized to underwrite or 

participate in the marketing of public utility 

securities. 

3 16 U.S.C. 825d(b). 

4Title I, Sec. 1, of the Public Utility Act of 1935 

(49 Stat. 803, 15 U.S.C. 79a). Title I was the Public 

Utility Holding Company Act of 1935. Title II 

became Parts II and III of the Federal Power Act, 

which include section 305(b). 

5 18 CFR part 45 (2017). 

6 16 U.S.C. 825d(c). 

7 18 CFR part 46. Section 305(c) of the FPA, as 

relevant here, requires that any person holding 

interlocking positions in both a public utility and 

any of the entities listed in section 305(c)(2) of the 

FPA file an annual report listing such interlocking 

positions. 16 U.S.C. 825d(c). The Commission 

implements section 305(c) in part 46 of its 

regulations and through its FERC Form No. 561. 

8 2016 Biennial Staff Memo Concerning 

Retrospective Analysis of Existing Rules, Docket 

No. AD12–6–002 (published Oct. 27, 2016) (81 FR 

76542, Nov. 3, 2016). 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 45 and 46 

[Docket No. RM18–15–000] 

Interlocking Officers and Directors; 

Requirements for Applicants and 

Holders 

AGENCY: Federal Energy Regulatory 

Commission, DOE. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Commission proposes to 

revise its regulations related to 

interlocking officers and directors to 

clarify and update the requirements for 

both applicants and holders. In 

particular, the Commission proposes to 

update its regulations to reflect statutory 

changes to the circumstances in which 

an applicant who would otherwise 

require Commission authorization to 

hold an interlocking position need not 

do so. The Commission also proposes to 

revise its regulations to clarify its 

position on late-filed applications and 

informational reports. The Commission 

further proposes to revise its regulations 

to clarify that an interlock holder is not 

required to file a notice of change when 

merely changing positions within a 

holding company. Additionally, the 

Commission proposes to revise its 

regulations to state that applicants do 

not need to list in their applications 

public utilities that do not have officers 

or directors. Next, the Commission 

proposes to revise its regulations with 

regard to public utilities owned by a 

natural person. Finally, the Commission 

proposes to update its regulations to 

remove a section containing definitions 

and phrases now rendered obsolete. 

DATES: Comments are due October 1, 

2018. 

ADDRESSES: Comments, identified by 

docket number, may be filed in the 

following ways: 

• Electronic Filing through http://

www.ferc.gov. Documents created 

electronically using word processing 

software should be filed in native 

applications or print-to-PDF format and 

not in a scanned format. 

• Mail/Hand Delivery: Those unable 

to file electronically may mail or handdeliver comments to: Federal Energy 

Regulatory Commission, Secretary of the 

Commission, 888 First Street NE, 

Washington, DC 20426. 

Instructions: For detailed instructions 

on submitting comments and additional 

information on the rulemaking process, 

see the Comment Procedures Section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

Amery Pore ́ (Technical Information), 

Office of Energy Market Regulation, 

Federal Energy Regulatory 

Commission, 888 First Street NE, 

Washington, DC 20426, (202) 502– 

6312 

Mary Ellen Stefanou (Legal 

Information), Office of the General 

Counsel, Federal Energy Regulatory 

Commission, 888 First Street NE, 

Washington, DC 20426, (202) 502– 

8989 

SUPPLEMENTARY INFORMATION: 

1. Section 305(b) of the Federal Power 

Act (FPA) 1 prohibits individuals from 

concurrently holding positions as an 

officer or director of more than one 

public utility; or concurrently holding 

the positions of officer or director of a 

public utility and of an entity 

authorized by law to underwrite or 

participate in the marketing of public 

utility securities; 2 or concurrently 

holding the positions of officer or 

director of a public utility and a 

company supplying electrical 

equipment to such public utility, unless 

the holding of such positions has been 

authorized by the Commission upon a 

showing that neither public nor private 

interests will be adversely affected.3

Congress enacted section 305(b) to 

prevent certain perceived abuses with 

holding companies, including (1) 

excessive charges to subsidiary public 

utility companies resulting from the 

lack of arm’s length bargaining or the 

restraint of free and independent 

competition; (2) allocation of charges for 

goods and services among subsidiary 

companies in different States so as to 

frustrate State regulation; (3) control of 

subsidiary public utility companies 

through disproportionately small 

investment resulting in account 

practices, and rate, dividend and other 

policies that complicated and 

obstructed State regulation; and (4) a 

general lack of economy of management 

and operation of public utilities, a lack 

of efficiency and adequacy of services or 

a lack of effective public regulation and 

a lack of economies in raising capital.4

2. The Commission implemented 

Congress’ mandate in part 45 of the 

Commission’s regulations.5 Consistent 

with the statute, part 45 provides that an 

application or informational filing be 

filed, and authorization granted, before 

a person may hold otherwise proscribed 

interlocking positions. Part 46 of the 

Commission’s regulations, which 

implements section 305(c) of the FPA,6

describes the annual filing requirements 

for those holding interlocking positions, 

including the relevant definitions. 

3. As described below, we propose 

revisions to parts 45 and 46 of our 

regulations.7

I. Discussion 

4. On October 27, 2016, Commission 

staff issued its 2016 Biennial Staff 

Memo Concerning Retrospective 

Analysis of Existing Rules,8 in which it 

identified certain Commission 

regulations as ripe for evaluation, 

including 18 CFR part 45. The Edison 

Electric Institute (EEI) submitted 

comments in support of the 

Commission’s suggested revisions to 18 


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9See Edison Electric Institute Comments, Docket 

No. AD12–6–002 (Nov. 28, 2016). 

10 18 CFR 45.2(b)(2). 

11See Public Law 106–102, sec. 737, 113 Stat. 

1338, 1479 (1999). 

12 18 CFR 45.2(b)(2). 

13See also 16 U.S.C. 825d(b)(2). 

14 16 U.S.C. 825d(b)(1). 

15The public utilities whose officers and 

directors are subject to the statutory directive in 

section 305(b) to file, as regulated entities 

themselves subject to and thus sensitive to the 

requirements of the FPA, would be well-advised to 

and should make every effort to ensure that their 

officers and directors, in turn, act in accordance 

with the statutory directives in section 305(b). 

16 If an applicant has a pending application, 

however, we would expect that the applicant would 

supplement his/her application should a change 

occur while the application is pending. In contrast, 

as noted above, an applicant who has been granted 

authorization and no longer has a pending 

application is differently situated, and any change 

in the positions held can be addressed in the next 

Form No. 561. 

CFR part 45 and proposed additional 

revisions.9

5. Based on our review of our 

regulations, as well as our review of the 

comments submitted by EEI, we propose 

the following changes to the regulations 

in part 45, as well as certain revisions 

to part 46. 

6. Section 45.2 of the Commission’s 

regulations describes the types of 

interlocking positions that require 

Commission authorization, including 

those between a public utility and 

entities authorized by law to underwrite 

or participate in the marketing of public 

utility securities.10 However, in 1999, 

Congress amended section 305(b)(2) of 

the FPA to provide that an applicant for 

certain interlocking positions is no 

longer required to obtain Commission 

authorization to hold such positions.11

As a result, the Commission proposes to 

revise § 45.2 of its regulations to add 

that an applicant for an interlocking 

position between a public utility and a 

‘‘bank, trust company, banking 

association, or firm that is authorized by 

law to underwrite or participate in the 

marketing of public utility securities,’’ 12

does not need Commission 

authorization when: 

(1) He/she does not participate in any 

deliberations or decisions of the public 

utility regarding the selection of the 

bank, trust company, banking 

association, or firm to underwrite or 

participate in the marketing of securities 

of the public utility, if he/she serves as 

an officer or director of a bank, trust 

company, banking association, or firm 

that is under consideration in the 

deliberation process; 

(2) the bank, trust company, banking 

association, or firm of which he/she is 

an officer or director does not engage in 

the underwriting of, or participate in the 

marketing of, securities of the public 

utility of which he/she holds the 

position of officer or director; 

(3) the public utility for which he/she 

serves or proposes to serve as an officer 

or director selects underwriters by 

competitive procedures; or 

(4) the issuance of securities of the 

public utility for which he/she serves or 

proposes to serve as an officer or 

director has been approved by all 

Federal and State regulatory agencies 

having jurisdiction over the issuance.13

7. Sections 45.3 and 45.9 of the 

Commission’s regulations require 

applications and informational filings 

be filed with the Commission before an 

applicant holds any interlocking 

positions within the purview of section 

305. The Commission’s regulations 

currently provide in § 45.3(a) that ‘‘latefiled applications will be denied’’ and 

in § 45.9(b) that ‘‘[f]ailure to timely file 

the informational report will constitute 

a failure to satisfy this condition and 

will constitute automatic denial.’’ 

8. The Commission expects its 

regulations to be followed. However, the 

Commission recognizes that good faith 

errors and oversights may occasionally 

result in the inadvertent violation of the 

timing of section 305(b)’s filing 

requirements. The Commission believes 

that it is not in the public interest to 

deny otherwise-qualified applicants’ 

late-filed applications and informational 

filings made under these regulations 

when the late filing is due solely to such 

good faith errors and oversights alone. 

Late-filed applications do not impede 

the Commission’s ability to decide the 

case. The statutory standard for 

authorization to hold otherwiseproscribed interlocks requires the 

Commission to determine whether the 

holding of otherwise-proscribed 

interlocks adversely affects neither 

public nor private interests, and that 

determination typically would not 

depend solely on the date an applicant 

happens to file.14 Nor would 

applications that are filed late solely 

due to good faith errors and oversights 

implicate the abuses that Congress 

attempted to prevent in promulgating 

section 305. Further, denying late-filed 

applications could cause unnecessary 

inefficiencies for companies. Therefore, 

the Commission proposes to delete the 

above-quoted language, and to replace it 

with language providing for 

consideration of late-filed applications 

for interlocking positions on a case-bycase basis.15

9. The Commission expects that 

applicants will be attentive to their 

obligation to timely file for the required 

authorizations and make every effort to 

ensure they act in accordance with the 

statutory directives in section 305(b). In 

cases where occasional errors and 

oversights occur, the Commission 

expects that those errors and oversights 

will be expeditiously identified and 

rectified, and applications to hold 

interlocking director positions promptly 

filed. The Commission would look 

unfavorably on section 305(b) 

applications where an applicant has not 

been attentive to his/her obligation to 

file for the required authorization. 

10. The Commission proposes to 

revise §§ 45.4 and 45.5 of its regulations 

to clarify that supplemental applications 

and notices of change need not be filed 

in the case of a person already 

authorized to hold interlocks identified 

in § 45.9(a) who may assume new or 

different positions that are still among 

those identified by § 45.9(a).16 For 

example, a promotion within a holding 

company system would not require an 

interlock holder to file a notice of 

change. Such changes in positions 

among related public utilities are 

already reported in the annual Form No. 

561s, and separate filings under § 45.4 

or § 45.5 are unnecessary. However, the 

Commission clarifies that, for such 

interlocking positions, a holder would 

still be required to file a notice of 

change when he/she no longer holds 

any interlocking positions within the 

scope of the statute and regulations. No 

longer holding any interlocking 

positions would constitute a ‘‘material 

or substantial change.’’ 

11. The Commission proposes to 

revise § 45.8(c)(1) of its regulations to 

state that applicants under part 45 do 

not need to list in their applications 

those public utilities that do not have 

officers or directors. The Commission 

recognizes the growing complexity of 

corporate structures. Thus, in the 

interest of reducing regulatory burdens, 

the Commission proposes to eliminate 

the requirement that applications under 

part 45 list those public utilities that do 

not have officers or directors. 

12. The Commission proposes to 

revise § 45.9 of its regulations to add the 

word ‘‘person’’ when defining the 

corporate relationships within the scope 

of the automatic authorizations 

addressed in § 45.9. The Commission 

would thus recognize that public 

utilities can be owned not just by a 

corporate entity but by a natural person, 

and the regulations should reflect this 

possibility. 

13. Finally, the Commission proposes 

to update its regulations in part 46 to 

remove § 46.2(b), because the 

definitions were rendered obsolete as a 

result of the enactment of the Energy 


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17See Energy Policy Act of 2005, Public Law 109– 

58, 1261–77, 119 Stat. 594, 972–78 (2005). 18 16 U.S.C. 79a et seq. 19EPAct 2005, Public Law 109–58, 1263. 20 44 U.S.C. 3507(d). 

21 5 CFR part 1320. 

22 18 CFR parts 45 and 46. 

23 44 U.S.C. 3507(d). 

24 ‘‘Burden’’ is the total time, effort, or financial 

resources expended by persons to generate, 

maintain, retain, or disclose or provide information 

to or for a Federal agency. For further explanation 

of what is included in the information collection 

burden, refer to 5 CFR 1320.3 

25The Commission staff thinks that the average 

respondent for this collection is similarly situated 

to the Commission, in terms of salary plus benefits. 

Based upon FERC’s 2018 annual average (for salary 

plus benefits) of $164,820, the average hourly cost 

is $79/hour. 

Policy Act of 2005 and the concurrent 

repeal of the Public Utility Holding 

Company Act of 1935.17 The 

Commission notes that § 46.2(b) 

currently references the definition of 

‘‘holding company system’’ and 

‘‘registered holding company system’’ in 

the Public Utility Holding Company Act 

(PUHCA) of 1935.18 However, the 

Commission recognizes that the Energy 

Policy Act of 2005 repealed the PUHCA 

of 1935.19 Thus, the Commission 

proposes to remove § 46.2(b). The 

Commission also proposes to update 

part 46 to change ‘‘Rural Electrification 

Administration’’ to ‘‘Rural Utilities 

Service’’ to reflect the name change of 

that organization. 

II. Information Collection Statement 

14. The Paperwork Reduction Act 

(PRA) 20 requires each federal agency to 

seek and obtain Office of Management 

and Budget (OMB) approval before 

undertaking a collection of information 

directed to 10 or more persons or 

contained in a rule of general 

applicability. OMB’s regulations 21

require approval of certain information 

collection requirements imposed by 

agency rules. Upon approval of a 

collection of information, OMB will 

assign an OMB control number and an 

expiration date. Respondents subject to 

the filing requirements of an agency rule 

will not be penalized for failing to 

respond to these collections of 

information unless the collections of 

information display a valid OMB 

control number. 

15. The revisions proposed in this 

NOPR would clarify and update the 

requirements 22 for those seeking and 

holding interlocking positions. The 

Commission anticipates that the 

revisions, once effective, would reduce 

regulatory burdens. The Commission 

will submit the proposed reporting 

requirements to OMB for its review and 

approval under section 3507(d) of the 

Paperwork Reduction Act.23

16. While the Commission expects 

that the regulatory revisions proposed 

herein will reduce the burdens on 

affected entities, the Commission 

nonetheless solicits public comments 

regarding the accuracy of the burden 

and cost estimates below. 

17. Burden Estimate: 24 The estimated 

burden and cost for the requirements 

contained in this NOPR follow. 

FERC FORM NO. 520 

[Application for authority to hold interlocking directorate positions] 

Number of 

respondents 

Annual 

number of 

responses 

per 

respondent 

Total 

number of 

responses 

Average burden 

& cost per 

response 25

Total annual 

burden hours 

(total annual 

cost) 

Cost per 

respondent 

($) 

(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1) 

Full ................................... 16 1 16 50 hrs.; $3,950 .......... 800 hrs.; $63,200 ...... $3,950 

Informational .................... 500 1 500 8 hrs.; $632 ............... 4,000 hrs.; $316,000 632 

Notice of Change ............. 100 1 100 0.25 hrs.; $19.75 ....... 25 hrs.; $1,975 .......... 19.75 

Total .......................... ........................ ........................ ........................ .................................... 4,825 hrs.; $381,175 ........................

Title: FERC–520 (Application for 

Authority to Hold Interlocking 

Directorate Positions). 

OMB Control No.: 1902–0083. 

Abstract: The FPA, as amended, 

mandates federal oversight and approval 

of certain electric corporate activities to 

ensure that neither public nor private 

interests are adversely affected. 

Accordingly, the Commission’s 

regulations prescribe related 

information filing requirements to 

achieve this goal. Such filing 

requirements are found in 18 CFR parts 

45 and 46. 

Overview of the Data Collection. 

FERC–520 provides information related 

to complex electric corporate activities, 

in particular, the holding of interlocking 

positions, and thereby serves to 

safeguard public and private interests, 

as the FPA requires. 

FERC–520 is divided into two types of 

applications: Full and informational. 

The full application, as specified in 18 

CFR 45.8, implements the FPA 

requirement under section 305(b) that it 

is unlawful for any person to 

concurrently hold the positions of 

officer or director of more than one 

public utility; or a public utility and a 

financial institution that is authorized to 

underwrite or participate in the 

marketing of public utility securities; or 

a public utility and an electrical 

equipment supplier to such public 

utility, unless authorized by the 

Commission. In order to obtain 

authorization, an applicant must 

demonstrate that neither public nor 

private interests will be adversely 

affected by the holding of the positions. 

The full application provides the 

Commission with information about any 

interlocking position for which the 

applicant seeks authorization including, 

but not limited to, a description of 

duties and the estimated time devoted 

to the position. 

An informational (abbreviated) 

application, as specified in 18 CFR 45.9, 

allows an applicant to receive automatic 

authorization for an interlocked position 

upon receipt of the filing by the 

Commission. The informational 

application applies only to those 

individuals who seek authorization as: 

(1) An officer or director of two or more 

public utilities where the same holding 

company owns, directly or indirectly, 

that percentage of each utility’s stock (of 

whatever class or classes) which is 

required by each utility’s by-laws to 

elect directors; (2) an officer or director 

of two public utilities, if one utility is 

owned, wholly or in part, by the other 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 148 / Wednesday, August 1, 2018 / Proposed Rules 37453 

26Regulations Implementing the National 

Environmental Policy Act, Order No. 486, FERC 

Stats. & Regs. ¶ 30,783 (1987). 

27 18 CFR 380.4(a)(16). 

28 5 U.S.C. 601–12. 

29 13 CFR 121.101. 

30 13 CFR 121.201. See also U.S. Small Business 

Administration, Table of Small Business Size 

Standards Matched to North American Industry 

Classification System Codes (effective Feb. 26, 

2016), https://www.sba.gov/sites/default/files/files/ 

Size_Standards_Table.pdf. 

and, as its primary business, owns or 

operates transmission or generation 

facilities to provide transmission service 

or electric power for sale to its owners; 

or (3) an officer or director of more than 

one public utility, if such person is 

already authorized under part 45 to hold 

different positions as officer or director 

of those utilities where the interlock 

involves affiliated public utilities. 

FERC–520 also includes the 

requirement to file a notice of change if 

there are new positions or changes to 

the positions held. The Commission is 

proposing to revise its requirements and 

no longer require a notice of change 

when a person is merely changing 

positions within a holding company 

system. This proposal is expected to 

reduce the number of filed notices of 

change by 50 percent annually (from 

200 filings to 100 filings) and to reduce 

the corresponding total burden. 

Type of Respondents: Individuals 

who plan to concurrently become or 

concurrently are officers or directors of 

public utilities and of certain other 

entities must request authorization to 

hold such interlocking positions by 

submitting a FERC–520. 

Internal Review: The Commission has 

reviewed the information collection 

requirements and has determined that 

certain changes are needed and that the 

remaining requirements are necessary. 

These requirements conform to the 

Commission’s need for efficient 

information collection, communication, 

and management within the energy 

industry. The Commission has specific, 

objective support for the burden 

estimates associated with the 

information collection requirements. 

Interested persons may obtain 

information on the reporting 

requirements by contacting the 

following: Federal Energy Regulatory 

Commission, 888 First Street NE, 

Washington, DC 20426 [Attention: Ellen 

Brown, Office of the Executive Director], 

email: DataClearance@ferc.gov, Phone: 

(202) 502–8663, fax: (202) 273–0873. 

Comments concerning the collection of 

information and the associated burden 

estimate(s) may also be sent to the 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, 725 17th Street NW, 

Washington, DC 20503 [Attention: Desk 

Officer for the Federal Energy 

Regulatory Commission]. Due to 

security concerns, comments should be 

sent electronically to the following 

email address: oira_submission@

omb.eop.gov. Please refer to FERC–520, 

OMB Control No. 1902–0083 in your 

submission. 

III. Environmental Analysis 

18. The Commission is required to 

prepare an Environmental Assessment 

or an Environmental Impact Statement 

for any action that may have a 

significant adverse effect on the human 

environment.26 We conclude that 

neither an Environmental Assessment 

nor an Environmental Impact Statement 

is required for this NOPR under 380.4(a) 

of the Commission’s regulations, which 

provides a categorical exemption for 

approval of ‘‘action under section [ ] 

. . . 305 of the FPA relating to . . . 

interlocking directorates, . . . .’’ 27

IV. Regulatory Flexibility Act 

19. The Regulatory Flexibility Act of 

1980 (RFA) 28 generally requires a 

description and analysis of proposed 

rules that will have significant 

economic impact on a substantial 

number of small entities. The Small 

Business Administration’s (SBA) Office 

of Size Standards develops the 

numerical definition of a small entity.29

These standards are provided in the 

SBA regulations at 13 CFR 121.201.30

20. This proposed rule, if adopted, 

would apply to those individuals 

seeking to hold and those currently 

holding interlocking positions. In order 

to obtain authorization, an applicant 

must demonstrate that neither public 

nor private interests will be adversely 

affected by the holding of the 

interlocking positions. 

21. There are an estimated 16 

respondents who could file full 

applications over the course of a year, 

who would provide one response 

annually with an estimated time 

commitment of 50 hours per response, 

and a resulting estimated cost of 

$3,950.00 per respondent. There are an 

estimated 500 respondents who could 

file informational applications over the 

course of a year, who would provide 

one response annually with an 

estimated time commitment of 8 hours 

per response, and a resulting estimated 

cost of $632.00 per respondent. In 

addition, there are an estimated 100 

respondents who could file a notice of 

change annually with an estimated time 

commitment of 0.25 hours, and a 

resulting cost of $19.75 per respondent. 

Therefore the average annual cost for 

each of the 616 respondents is $618.79. 

That cost is not significant. More 

importantly, this proposed rule reduces 

industry cost by eliminating the need 

for the filing of some notices of change. 

22. The Commission certifies that this 

proposed rule, if adopted, will not have 

a significant economic impact on a 

substantial number of small entities. 

V. Comment Procedures 

23. The Commission invites interested 

persons to submit comments on the 

matters and issues proposed in this 

notice of proposed rulemaking to be 

adopted, including any related matters 

or alternative proposals that 

commenters may wish to discuss. 

Comments are due October 1, 2018. 

Comments must refer to Docket No. 

RM18–15–000, and must include the 

commenter’s name, the organization 

they represent, if applicable, and their 

address in their comments. 

24. The Commission encourages 

comments to be filed electronically via 

the eFiling link on the Commission’s 

website at http://www.ferc.gov. The 

Commission accepts most standard 

word processing formats. Documents 

created electronically using word 

processing software should be filed in 

native applications or print-to-PDF 

format and not in a scanned format. 

Commenters filing electronically do not 

need to make a paper filing. 

25. Commenters that are not able to 

file comments electronically must send 

an original of their comments to: 

Federal Energy Regulatory Commission, 

Secretary of the Commission, 888 First 

Street NE, Washington, DC 20426. 

26. All comments will be placed in 

the Commission’s public files and may 

be viewed, printed, or downloaded 

remotely as described in the Document 

Availability section below. Commenters 

on this proposal are not required to 

serve copies of their comments on other 

commenters. 

VI. Document Availability 

27. In addition to publishing the full 

text of this document in the Federal 

Register, the Commission provides all 

interested persons an opportunity to 

view and/or print the contents of this 

document via the internet through the 

Commission’s Home Page (http://

www.ferc.gov) and in the Commission’s 

Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. 

Eastern time) at 888 First Street NE, 

Room 2A, Washington, DC 20426. 

28. From the Commission’s Home 

Page on the internet, this information is 

available on eLibrary. The full text of 

this document is available on eLibrary 


sradovich on DSK3GMQ082PROD with PROPOSALS
37454 Federal Register / Vol. 83, No. 148 / Wednesday, August 1, 2018 / Proposed Rules 

in PDF and Microsoft Word format for 

viewing, printing, and/or downloading. 

To access this document in eLibrary, 

type the docket number excluding the 

last three digits of this document in the 

docket number field. 

29. User assistance is available for 

eLibrary and the Commission’s website 

during normal business hours from the 

Commission’s Online Support at 202– 

502–6652 (toll free at 1–866–208–3676) 

or email at ferconlinesupport@ferc.gov, 

or the Public Reference Room at (202) 

502–8371, TTY (202)502–8659. Email 

the Public Reference Room at 

public.referenceroom@ferc.gov. 

List of Subjects 

18 CFR Part 45 

Electric utilities, Reporting and 

recordkeeping requirements. 

18 CFR Part 46 

Antitrust, Electric utilities, Holding 

companies, Reporting and 

recordkeeping requirements. 

By direction of the Commission. 

Issued: July 19, 2018. 

Kimberly D. Bose, 

Secretary. 

In consideration of the foregoing, the 

Commission proposes to amend parts 45 

and 46, chapter I, title 18, Code of 

Federal Regulations, as follows. 

PART 45—APPLICATION FOR 

AUTHORITY TO HOLD INTERLOCKING 

POSITIONS 

■ 1. The authority citation for part 45 

continues to read as follows: 

Authority: 16 U.S.C. 791a–825r, 2601– 

2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352; 

3 CFR 142. 

■ 2. Add § 45.2(d) to read as follows: 

§ 45.2 Positions requiring authorization. 

* * * * * 

(d) A person that holds or proposes to 

hold an interlocking position as officer 

or director of a public utility and of a 

corporation described by paragraph 

(b)(2) of this section shall not require 

authorization to hold such positions in 

the following circumstances— 

(1) The person does not participate in 

any deliberations or decisions of the 

public utility regarding the selection of 

the bank, trust company, banking 

association, or firm to underwrite or 

participate in the marketing of securities 

of the public utility, if the person serves 

as an officer or director of a bank, trust 

company, banking association, or firm 

that is under consideration in the 

deliberation process; 

(2) The bank, trust company, banking 

association, or firm of which the person 

is an officer or director does not engage 

in the underwriting of, or participate in 

the marketing of, securities of the public 

utility of which the person holds the 

position of officer or director; 

(3) The public utility for which the 

person serves or proposes to serve as an 

officer or director selects underwriters 

by competitive procedures; or 

(4) The issuance of securities of the 

public utility for which the person 

serves or proposes to serve as an officer 

or director has been approved by all 

Federal and State regulatory agencies 

having jurisdiction over the issuance. 

■ 3. Revise § 45.3(a) to read as follows: 

§ 45.3 Timing of filing application. 

(a) The holding of positions within 

the purview of section 305(b) of the Act 

shall be unlawful unless the holding 

shall have been authorized by order of 

the Commission. Nothing in this part 

shall be construed as authorizing the 

holding of positions within the purview 

of section 305(b) of the Act prior to 

order of the Commission on application 

therefor. Applications must be filed and 

authorization must be granted prior to 

holding any interlocking positions 

within the purview of section 305(b) of 

the Act; the Commission will consider 

late-filed applications on a case-by-case 

basis. The term ‘‘holding,’’ as used in 

this part, shall mean acting as, serving 

as, voting as, or otherwise performing or 

assuming the duties and responsibilities 

of officer or director within the purview 

of section 305(b) of the Act. 

* * * * * 

■ 4. Add § 45.4(c) to read as follows: 

§ 45.4 Supplemental applications. 

* * * * * 

(c) Changes in interlocking positions 

within the scope of § 45.9. 

Notwithstanding paragraphs (a) and (b) 

of this section, in the case of 

interlocking positions that are identified 

in § 45.9(a), a filing under this section 

will not be required if the only change 

to be reported is holding a different or 

additional interlocking position which 

is identified in § 45.9(a). 

■ 5. Revise § 45.5(b) to read as follows: 

§ 45.5 Supplemental information. 

* * * * * 

(b) Notice of changes. In the event of 

the applicant’s resignation, withdrawal, 

or failure of reelection or appointment 

in respect to any of the interlocking 

positions for which authorization has 

been granted by the Commission, or in 

the event of any other material or 

substantial change therein, the applicant 

shall, within 30 days after any such 

change occurs, give notice thereof to the 

Commission setting forth the position, 

corporation, and date of termination 

therewith, or other material or 

substantial change. In the case of 

interlocking positions that are identified 

in § 45.9(a), a notice of change under 

this section will not be required if the 

only change to be reported is holding a 

different or additional interlocking 

position which is identified in § 45.9(a). 

* * * * * 

■ 6. Revise § 45.8(c)(1) to read as 

follows: 

§ 45.8 Contents of application. 

* * * * * 

(c) * * * 

(1) Name of utility, unless said utility 

does not have officers or directors. 

* * * * * 

■ 7. Revise § 45.9(a)(1) and (b) to read as 

follows: 

§ 45.9 Automatic authorization of certain 

interlocking positions. 

(a) * * * 

(1) Officer or director of one or more 

other public utilities if the same holding 

company or person owns, directly or 

indirectly, that percentage of each 

utility’s stock (of whatever class or 

classes) which is required by each 

utility’s by-laws to elect directors; 

* * * * * 

(b) Conditions of authorization. As a 

condition of authorization, any person 

authorized to hold interlocking 

positions under this section must 

submit, prior to performing or assuming 

the duties and responsibilities of the 

position, an informational report in 

accordance with paragraph (c) of this 

section, unless that person is already 

authorized to hold interlocking 

positions of the type governed by this 

section. The Commission will consider 

failures to timely file the informational 

report on a case-by-case basis. 

* * * * * 

PART 46—PUBLIC UTILITY FILING 

REQUIREMENTS AND FILING 

REQUIREMENTS FOR PERSONS 

HOLDING INTERLOCKING POSITIONS 

■ 8. The authority citation for part 46 

continues to read as follows: 

Authority: 16 U.S.C. 792–828c; 16 U.S.C. 

2601–2645; 42 U.S.C. 7101–7352; E.O. 12009, 

3 CFR 142. 

■ 9. In § 46.2, revise paragraph (a), 

remove and reserve paragraph (b), and 

revise paragraphs (c) and (e) to read as 

follows: 

§ 46.2 Definitions. 

* * * * * 

(a) Public utility has the same 

meaning as in section 201(e) of the 

Federal Power Act. Such term does not 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 148 / Wednesday, August 1, 2018 / Proposed Rules 37455 

include any rural electric cooperative 

which is regulated by the Rural Utilities 

Service of the Department of Agriculture 

or any other entities covered in section 

201(f) of the Federal Power Act. 

* * * * * 

(c) Purchaser means any individual or 

corporation within the meaning of 

section 3 of the Federal Power Act who 

purchases electric energy from a public 

utility. Such term does not include the 

United States or any agency or 

instrumentality of the United States or 

any rural electric cooperative which is 

regulated by the Rural Utilities Service 

of the Department of Agriculture. 

* * * * * 

(e) Entity means any firm, company, 

or organization including any 

corporation, joint-stock company, 

partnership, association, business trust, 

organized group of persons, whether 

incorporated or not, or a receiver or 

receivers, trustee or trustees of any of 

the foregoing. Such term does not 

include municipality as defined in 

section 3 of the Federal Power Act and 

does not include any Federal, State, or 

local government agencies or any rural 

electric cooperative which is regulated 

by the Rural Utilities Service of the 

Department of Agriculture. 

* * * * * 

[FR Doc. 2018–16463 Filed 7–31–18; 8:45 am] 

BILLING CODE 6717–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 721 

[EPA–HQ–OPPT–2017–0366; FRL–9981–16] 

RIN 2070–AB27 

Significant New Use Rules on Certain 

Chemical Substances 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing significant 

new use rules (SNURs) under the Toxic 

Substances Control Act (TSCA) for 145 

chemical substances which were the 

subject of premanufacture notices 

(PMNs). The chemical substances are 

subject to Orders issued by EPA 

pursuant to section 5(e) of TSCA. This 

action would require persons who 

intend to manufacture (defined by 

statute to include import) or process any 

of these 145 chemical substances for an 

activity that is designated as a 

significant new use by this rule to notify 

EPA at least 90 days before commencing 

that activity. The required notification 

initiates EPA’s evaluation of the 

intended use within the applicable 

review period. Persons may not 

commence manufacture or processing 

for the significant new use until EPA 

has conducted a review of the 

premanufacture notice, made an 

appropriate determination on the 

notification, and has taken such actions 

as are required with that determination. 

In addition to this notice of proposed 

rulemaking, EPA is issuing the action as 

a direct final rule elsewhere in this issue 

of the Federal Register. 

DATES: Comments must be received on 

or before August 31, 2018. 

ADDRESSES: Submit your comments, 

identified by docket identification (ID) 

number EPA–HQ–OPPT–2017–0366, by 

one of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Do not submit electronically any 

information you consider to be 

Confidential Business Information (CBI) 

or other information whose disclosure is 

restricted by statute. 

• Mail: Document Control Office 

(7407M), Office of Pollution Prevention 

and Toxics (OPPT), Environmental 

Protection Agency, 1200 Pennsylvania 

Ave. NW, Washington, DC 20460–0001. 

• Hand Delivery: To make special 

arrangements for hand delivery or 

delivery of boxed information, please 

follow the instructions at http://

www.epa.gov/dockets/contacts.html. 

Additional instructions on 

commenting or visiting the docket, 

along with more information about 

dockets generally, is available at http:// 

www.epa.gov/dockets. 

FOR FURTHER INFORMATION CONTACT: 

For technical information contact: 

Kenneth Moss, Chemical Control 

Division (7405M), Office of Pollution 

Prevention and Toxics, Environmental 

Protection Agency, 1200 Pennsylvania 

Ave. NW, Washington, DC 20460–0001; 

telephone number: (202) 564–9232; 

email address: moss.kenneth@epa.gov. 

For general information contact: The 

TSCA-Hotline, ABVI-Goodwill, 422 

South Clinton Ave., Rochester, NY 

14620; telephone number: (202) 554– 

1404; email address: TSCA-Hotline@

epa.gov. 

SUPPLEMENTARY INFORMATION: In 

addition to this Notice of Proposed 

Rulemaking, EPA is issuing the action 

as a direct final rule elsewhere in this 

issue of the Federal Register. For further 

information about the proposed 

significant new use rules, please see the 

information provided in the direct final 

action, with the same title, that is 

located in the ‘‘Rules and Regulations’’ 

section of this issue of the Federal 

Register. 

List of Subjects in 40 CFR Part 721 

Environmental protection, Chemicals, 

Hazardous substances, Reporting and 

recordkeeping requirements. 

Dated: July 19, 2018. 

Jeffery T. Morris, 

Director, Office of Pollution Prevention and 

Toxics. 

[FR Doc. 2018–15996 Filed 7–31–18; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 622 

[Docket No. 171128999–8625–01] 

RIN 0648–BH43 

Fisheries of the Caribbean, Gulf of 

Mexico, and South Atlantic; Permit 

Renewal Applications 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: NMFS proposes to make 

administrative revisions to the renewal 

process for Federal vessel permits, 

licenses, and endorsements, and dealer 

permits (hereafter referred to 

collectively as permits) in the NMFS 

Southeast Region. This proposed rule 

would remove the regulatory 

requirement that NMFS must mail a 

renewal application to a permit holder 

(vessel or dealer) whose Federal permit 

is expiring. NMFS will continue to 

provide notice of the upcoming 

expiration date to the permit holder. 

This proposed rule would also remove 

the regulatory requirement that NMFS 

must notify an applicant of any 

deficiency in a renewal application only 

through sending a letter via traditional 

mail, such as through the U.S. Postal 

Service, which would allow NMFS 

expanded options for notifying permit 

holders. The purpose of this proposed 

rule is to reduce the administrative costs 

and burden to NMFS of renewing 

Federal permits, while still maintaining 

the needed information and services to 

the public. 

DATES: Written comments must be 

received by August 31, 2018. 

ADDRESSES: You may submit comments 

on the proposed rule identified by 


sradovich on DSK3GMQ082PROD with PROPOSALS