Notice of Updated Department of State Public Guidance for the Protecting Europe's Energy Security Act (PEESA), as Amended, 19684-19686 [2021-07662]

Download as PDF 19684 Federal Register / Vol. 86, No. 70 / Wednesday, April 14, 2021 / Notices 2. Statutory Basis The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act 3 in general, and furthers the objectives of Section 6(b)(5) of the Act 4 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. The proposed rule change will promote just and equitable principles of trade, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with to, and facilitating transaction in securities. Further, the proposed rule change promotes the protection of investors and the public interest by providing an accurate URL to where the public and investors may find the current and complete copy of the OLPP. It is in the public and investors interest for Exchange rules to be accurate and concise so as to avoid the potential for confusion. jbell on DSKJLSW7X2PROD with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes the proposed rule change will not impose any burden on intra-market competition as every Member of the Exchange benefits from the location of the OLPP being corrected in the Exchange’s rulebook. Additionally, the proposed rule change is similar to the rules of other exchanges.5 The Exchange does not believe that the proposed rule change will impose any burden on inter-market competition as the proposed change is not a competitive filing and is being made solely to correct an inaccurate URL. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 6 and Rule 19b– 4(f)(6) 7 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– PEARL–2021–13 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–PEARL–2021–13. This file number should be included on the 6 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 7 17 3 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 5 See Nasdaq ISE Options 4, Section 6; and Cboe Exchange Rule 4.7(a). 4 15 VerDate Sep<11>2014 17:22 Apr 13, 2021 Jkt 253001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–PEARL–2021–13 and should be submitted on or before May 5, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–07602 Filed 4–13–21; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF STATE [Public Notice 11405] Notice of Updated Department of State Public Guidance for the Protecting Europe’s Energy Security Act (PEESA), as Amended ACTION: Notice. The Protecting Europe’s Energy Security Act (PEESA) was amended by the FY21 National Defense Authorization Act (NDAA) on January 1, 2021. The Department of State is issuing updated, clarifying public guidance and Frequently Asked Questions (FAQs) for PEESA, as amended, on April 09, 2021, to provide public notice of the SUMMARY: 8 17 E:\FR\FM\14APN1.SGM CFR 200.30–3(a)(12). 14APN1 Federal Register / Vol. 86, No. 70 / Wednesday, April 14, 2021 / Notices jbell on DSKJLSW7X2PROD with NOTICES Administration’s implementation of PEESA, as amended, and the range of activities captured under the amended legislation. DATES: Applicable Date: The public guidance and associated FAQs for PEESA, as amended, is effective on April 9, 2021. ADDRESSES: The Department of State will publish the PEESA, as amended, public guidance and associated FAQs, on its website, replacing the October 2020 PEESA public guidance (https:// www.state.gov/protecting-europesenergy-security-act-peesa/). FOR FURTHER INFORMATION CONTACT: Email CAATSA_PEESA_ Energysanctions@state.gov. SUPPLEMENTARY INFORMATION: Frequently Asked Questions on PEESA, as Amended by the National Defense Authorization Act for FY2021 The Department of State is committed to fully implementing sanctions authorities in the Protecting Europe’s Energy Security Act of 2019 (‘‘PEESA’’ or ‘‘the Act,’’ Title LXXV, National Defense Authorization Act for Fiscal Year 2020, Pub. L. 116–92), as amended on January 1, 2021 by the National Defense Authorization Act for FY2021 (FY2021 NDAA), Public Law 116–283. PEESA (Sec. 7503 of FY2020 NDAA), as amended (by FY2021 NDAA Sec. 1242). We continue to call on Russia to cease using its energy resources for coercive purposes. Russia uses its energy export pipelines to create national and regional dependencies on Russian energy supplies, leveraging these dependencies to expand its political, economic, and military influence, weaken European security, and undermine U.S. national security and foreign policy interests. These pipelines also reduce European energy diversification, and hence weaken European energy security. PEESA, as amended, provides the United States with the authority to advance U.S. national security and foreign policy objectives, in particular to address Russian pipeline projects that create risks to U.S. national security, threaten Europe’s energy security, and consequently, endanger Europe’s political and economic welfare. In accordance with PEESA Section 7503, as amended, the Secretary of State, in consultation with the Secretary of the Treasury, is to submit a report to Congress for the relevant period, identifying, among other things, (A) vessels that engaged in pipe-laying or pipe-laying activities at depths of 100 feet or more below sea level for the construction of the Nord Stream 2 pipeline project, the TurkStream VerDate Sep<11>2014 17:22 Apr 13, 2021 Jkt 253001 pipeline project, or any project that is a successor to either such project; and (B) foreign persons that the Secretary of State, in consultation with the Secretary of the Treasury, determines have knowingly: (i) Sold, leased or provided, or facilitated selling, leasing, or providing those vessels for the construction of such a project; (ii) facilitated deceptive or structured transactions to provide those vessels for the construction of such a project; (iii) provided for those vessels underwriting services or insurance or reinsurance necessary or essential for the completion of such a project; (iv) provided services or facilities for technology upgrades or installation of welding equipment for, or retrofitting or tethering of, those vessels if the services or facilities are necessary or essential for the completion of such a project; or (v) provided services for the testing, inspection, or certification necessary or essential for the completion or operation of the Nord Stream 2 pipeline. In addition, the FY2021 NDAA amendments to PEESA expanded the types of vessel activity subject to reporting requirements in Section 7503(a)(1)(A) from solely ‘‘pipe-laying’’ to also include ‘‘pipe-laying activities,’’ which are defined in Section 7503(k)(5) as ‘‘activities that facilitate pipe-laying, including site preparation, trenching, surveying, placing rocks, backfilling, stringing, bending, welding, coating, and lowering of pipe.’’ Furthermore, pursuant to Section 7503(c), sanctions are to be imposed on those foreign persons that are determined to meet the criteria pursuant to Section 7503(a)(1)(B)(i–v) of PEESA, as amended, and who are not certified for wind-down under the applicable winddown period and are not subject to the exceptions under PEESA, as amended. The amendments made to PEESA by the FY2021 NDAA require consultation with the governments of Norway, Switzerland, the United Kingdom, and member countries of the EU before imposing any sanctions. Persons with additional questions are encouraged to contact the State Department at CAATSA_PEESA_ Energysanctions@state.gov. Frequently Asked Questions Q: What conduct does Section 7503(a)(1)(B) of PEESA, as amended, cover? A: Section 7503(a)(1)(B)(i), as amended, requires that the report to Congress include foreign persons that the Secretary of State, in consultation with the Secretary of the Treasury, determines have knowingly ‘‘sold, PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 19685 leased, or provided or facilitated selling, leasing, or providing those vessels [i.e., the vessels listed for having engaged in pipe-laying or pipe-laying activities at depths of 100 feet or more below sea level] for the construction of such a project.’’ Such projects include Nord Stream 2, TurkStream, or any project that is a successor to either such project. Section 7503(a)(1)(B)(i) covers foreign persons who provide or finance the vessels and also covers certain forms of support provided to the vessels not already covered under Sections 7503(a)(1)(B)(ii–v). Additionally, Section 7503(a)(1)(B)(ii) covers foreign persons that the Secretary of State, in consultation with the Secretary of the Treasury, determines have knowingly facilitated deceptive or structured transactions to provide those vessels for the construction of such a project. Such projects include Nord Stream 2, TurkStream, or any project that is a successor to either such project. Further, Sections 7503(a)(1)(B)(iii)–(v) cover foreign persons that the Secretary of State, in consultation with the Secretary of the Treasury, determines have knowingly: Provided for those vessels underwriting services or insurance or reinsurance necessary or essential for the completion of any of the aforementioned projects; provided services or facilities for technology upgrades or installation of welding equipment for, or retrofitting or tethering of, those vessels if the services or facilities are necessary or essential for the completion of any of the aforementioned projects; or provided services for the testing, inspection, or certification necessary or essential for the completion or operation of the Nord Stream 2 pipeline. Q: Does PEESA provide for certain activities to be excepted from sanctions? A: PEESA, as amended, includes a number of exceptions specifying activities to which sanctions under PEESA shall not apply. For example, pursuant to Section 7503(e)(3) of PEESA, as amended, sanctions under this section shall not apply with respect to a person providing provisions to a vessel identified under Section 7503(a)(1)(A) if such provisions are intended for the safety and care of the crew aboard the vessel, the protection of human life aboard the vessel, or the maintenance of the vessel to avoid any environmental or other significant damage. Pursuant to Section 7503(e)(4) of PEESA, as amended, sanctions under this section shall not apply with respect to a person for engaging in activities necessary for or related to the repair or E:\FR\FM\14APN1.SGM 14APN1 19686 Federal Register / Vol. 86, No. 70 / Wednesday, April 14, 2021 / Notices maintenance of, or environmental remediation with respect to, Nord Stream 2, TurkStream, or any project that is a successor to either such project. Pursuant to Section 7503(e)(6) of PEESA, as amended, sanctions under this section shall not apply with respect to the European Union; the government of Norway, Switzerland, the United Kingdom or any member country of the European Union; or any entity of the European Union or a government noted herein that is not operating as a business enterprise. Q. How does the U.S. government plan to implement the wind-down specified in Section 1242(f) of the National Defense Authorization Act for Fiscal Year 2021 (NDAA)? A: Upon passage of the FY2021 NDAA on January 1, 2021, the amendments made to PEESA pursuant to Section 1242(f) of the FY2021 NDAA immediately became effective. In accordance with the wind-down provision in Section 1242(f) of the FY2021 NDAA, persons that were knowingly engaged in conduct subject to sanctions under the amendments to PEESA would have needed to cease construction-related activity or engage in good faith efforts to wind down sanctionable activity no later than 30 days after PEESA, as amended, became effective. That date was January 31, 2021. The wind-down provision in Section 1242(f) of the FY2021 NDAA is not applicable to activities that were already subject to sanctions under Section 7503 of PEESA prior to the amendments in the FY2021 NDAA. Following the conclusion of the winddown period, the Secretary of State, in consultation with the Secretary of the Treasury, is required to impose sanctions on those foreign persons that are determined to meet the criteria pursuant to Section 7503(a)(1)(B)(i–v) of PEESA, as amended, and who are not otherwise subject to the exceptions under PEESA, as amended. Virginia E. Palmer, Acting Assistant Secretary, Bureau of Energy Resources, Department of State. [FR Doc. 2021–07662 Filed 4–13–21; 8:45 am] ADDRESSES: [Public Notice: 11395] Notice of Determinations; Culturally Significant Objects Being Imported for Exhibition—Determinations: ‘‘The Buddha Transcendent’’ Exhibition Notice is hereby given of the following determinations: I hereby determine that certain objects being imported from abroad pursuant to an agreement with the foreign owner or custodian for temporary display in the exhibition ‘‘The Buddha Transcendent’’ at the Museum of Fine Arts, Houston, in Houston, Texas and at possible additional exhibitions or venues yet to be determined, are of cultural significance, and, further, that their temporary exhibition or display within the United States as aforementioned is in the national interest. I have ordered that Public Notice of these determinations be published in the Federal Register. FOR FURTHER INFORMATION CONTACT: Chi D. Tran, Program Administrator, Office of the Legal Adviser, U.S. Department of State (telephone: 202–632–6471; email: section2459@state.gov). The mailing address is U.S. Department of State, L/PD, SA–5, Suite 5H03, Washington, DC 20522–0505. SUPPLEMENTARY INFORMATION: The foregoing determinations were made pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), Executive Order 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681, et seq.; 22 U.S.C. 6501 note, et seq.), Delegation of Authority No. 234 of October 1, 1999, and Delegation of Authority No. 236–3 of August 28, 2000. SUMMARY: Matthew R. Lussenhop, Acting Assistant Secretary, Bureau of Educational and Cultural Affairs, Department of State. [FR Doc. 2021–07613 Filed 4–13–21; 8:45 am] BILLING CODE 4710–05–P SUSQUEHANNA RIVER BASIN COMMISSION Projects Approved for Consumptive Uses of Water BILLING CODE 4710–AE–P Susquehanna River Basin Commission. ACTION: Notice. jbell on DSKJLSW7X2PROD with NOTICES AGENCY: This notice lists the projects approved by rule by the Susquehanna River Basin Commission during the period set forth in DATES. SUMMARY: VerDate Sep<11>2014 17:22 Apr 13, 2021 Jkt 253001 PO 00000 Frm 00085 Fmt 4703 March 1–31, 2021. Susquehanna River Basin Commission, 4423 North Front Street, Harrisburg, PA 17110–1788. FOR FURTHER INFORMATION CONTACT: Jason E. Oyler, General Counsel and Secretary to the Commission, telephone: (717) 238–0423, ext. 1312; fax: (717) 238–2436; email: joyler@srbc.net. Regular mail inquiries may be sent to the above address. SUPPLEMENTARY INFORMATION: This notice lists the projects, described below, receiving approval for the consumptive use of water pursuant to the Commission’s approval by rule process set forth in 18 CFR 806.22(f) for the time period specified above: DATES: DEPARTMENT OF STATE Sfmt 4703 Water Source Approval—Issued Under 18 CFR 806.22(f) 1. Cabot Oil & Gas Corporation; Pad ID: BenediktK P1; ABR–202102003; Bridgewater Township, Susquehanna County, Pa.; Consumptive Use of Up to 5.0000 mgd; Approval Date: March 1, 2021. 2. SWN Production Company, LLC; Pad ID: WY–18 WEST PAD; ABR–201510008.R1; Eaton and Mehoopany Townships, Wyoming County, Pa.; Consumptive Use of Up to 4.9990 mgd; Approval Date: March 1, 2021. 3. SWN Production Company, LLC; Pad ID: GU–X SEYMOUR PAD; ABR– 201512010.R1; Stevens Township, Bradford County; and Rush Township, Susquehanna County; Pa.; Consumptive Use of Up to 4.9990 mgd; Approval Date: March 1, 2021. 4. SWN Production Company, LLC; Pad ID: Hayes Well Pad; ABR–201202034.R2; Silver Lake Township, Bradford County, Pa.; Consumptive Use of Up to 4.0000 mgd; Approval Date: March 1, 2021. 5. SWN Production Company, LLC; Pad ID: Demento Pad; ABR–201102036.R2; Silver Lake Township, Bradford County, Pa.; Consumptive Use of Up to 4.9900 mgd; Approval Date: March 2, 2021. 6. SWN Production Company, LLC; Pad ID: Knapik Well Pad; ABR–201102033.R2; Liberty Township, Susquehanna County, Pa.; Consumptive Use of Up to 4.0000 mgd; Approval Date: March 2, 2021. 7. BKV Operating, LLC; Pad ID: Yarasavage Well Pad; ABR–201102021.R2; Washington Township, Wyoming County, Pa.; Consumptive Use of Up to 5.0000 mgd; Approval Date: March 2, 2021. 8. Repsol Oil & Gas USA, LLC; Pad ID: HARTNETT (05 097) R; ABR– 201010045.R2; Orwell and Warren Townships, Bradford County, Pa.; Consumptive Use of Up to 6.0000 mgd; Approval Date: March 4, 2021. 9. Rockdale Marcellus, LLC; Pad ID: Guillaume 715; ABR–201011002.R2; Liberty Township, Tioga County, Pa.; Consumptive Use of Up to 4.9900 mgd; Approval Date: March 4, 2021. 10. SWN Production Company, LLC; Pad ID: E:\FR\FM\14APN1.SGM 14APN1

Agencies

[Federal Register Volume 86, Number 70 (Wednesday, April 14, 2021)]
[Notices]
[Pages 19684-19686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07662]


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DEPARTMENT OF STATE

[Public Notice 11405]


Notice of Updated Department of State Public Guidance for the 
Protecting Europe's Energy Security Act (PEESA), as Amended

ACTION: Notice.

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

SUMMARY: The Protecting Europe's Energy Security Act (PEESA) was 
amended by the FY21 National Defense Authorization Act (NDAA) on 
January 1, 2021. The Department of State is issuing updated, clarifying 
public guidance and Frequently Asked Questions (FAQs) for PEESA, as 
amended, on April 09, 2021, to provide public notice of the

[[Page 19685]]

Administration's implementation of PEESA, as amended, and the range of 
activities captured under the amended legislation.

DATES: Applicable Date: The public guidance and associated FAQs for 
PEESA, as amended, is effective on April 9, 2021.

ADDRESSES: The Department of State will publish the PEESA, as amended, 
public guidance and associated FAQs, on its website, replacing the 
October 2020 PEESA public guidance (https://www.state.gov/protecting-europes-energy-security-act-peesa/).

FOR FURTHER INFORMATION CONTACT: 
    Email [email protected].

SUPPLEMENTARY INFORMATION:

Frequently Asked Questions on PEESA, as Amended by the National Defense 
Authorization Act for FY2021

    The Department of State is committed to fully implementing 
sanctions authorities in the Protecting Europe's Energy Security Act of 
2019 (``PEESA'' or ``the Act,'' Title LXXV, National Defense 
Authorization Act for Fiscal Year 2020, Pub. L. 116-92), as amended on 
January 1, 2021 by the National Defense Authorization Act for FY2021 
(FY2021 NDAA), Public Law 116-283. PEESA (Sec. 7503 of FY2020 NDAA), as 
amended (by FY2021 NDAA Sec. 1242). We continue to call on Russia to 
cease using its energy resources for coercive purposes. Russia uses its 
energy export pipelines to create national and regional dependencies on 
Russian energy supplies, leveraging these dependencies to expand its 
political, economic, and military influence, weaken European security, 
and undermine U.S. national security and foreign policy interests. 
These pipelines also reduce European energy diversification, and hence 
weaken European energy security.
    PEESA, as amended, provides the United States with the authority to 
advance U.S. national security and foreign policy objectives, in 
particular to address Russian pipeline projects that create risks to 
U.S. national security, threaten Europe's energy security, and 
consequently, endanger Europe's political and economic welfare.
    In accordance with PEESA Section 7503, as amended, the Secretary of 
State, in consultation with the Secretary of the Treasury, is to submit 
a report to Congress for the relevant period, identifying, among other 
things, (A) vessels that engaged in pipe-laying or pipe-laying 
activities at depths of 100 feet or more below sea level for the 
construction of the Nord Stream 2 pipeline project, the TurkStream 
pipeline project, or any project that is a successor to either such 
project; and (B) foreign persons that the Secretary of State, in 
consultation with the Secretary of the Treasury, determines have 
knowingly: (i) Sold, leased or provided, or facilitated selling, 
leasing, or providing those vessels for the construction of such a 
project; (ii) facilitated deceptive or structured transactions to 
provide those vessels for the construction of such a project; (iii) 
provided for those vessels underwriting services or insurance or 
reinsurance necessary or essential for the completion of such a 
project; (iv) provided services or facilities for technology upgrades 
or installation of welding equipment for, or retrofitting or tethering 
of, those vessels if the services or facilities are necessary or 
essential for the completion of such a project; or (v) provided 
services for the testing, inspection, or certification necessary or 
essential for the completion or operation of the Nord Stream 2 
pipeline.
    In addition, the FY2021 NDAA amendments to PEESA expanded the types 
of vessel activity subject to reporting requirements in Section 
7503(a)(1)(A) from solely ``pipe-laying'' to also include ``pipe-laying 
activities,'' which are defined in Section 7503(k)(5) as ``activities 
that facilitate pipe-laying, including site preparation, trenching, 
surveying, placing rocks, backfilling, stringing, bending, welding, 
coating, and lowering of pipe.'' Furthermore, pursuant to Section 
7503(c), sanctions are to be imposed on those foreign persons that are 
determined to meet the criteria pursuant to Section 7503(a)(1)(B)(i-v) 
of PEESA, as amended, and who are not certified for wind-down under the 
applicable wind-down period and are not subject to the exceptions under 
PEESA, as amended. The amendments made to PEESA by the FY2021 NDAA 
require consultation with the governments of Norway, Switzerland, the 
United Kingdom, and member countries of the EU before imposing any 
sanctions.
    Persons with additional questions are encouraged to contact the 
State Department at [email protected].

Frequently Asked Questions

Q: What conduct does Section 7503(a)(1)(B) of PEESA, as amended, cover?

    A: Section 7503(a)(1)(B)(i), as amended, requires that the report 
to Congress include foreign persons that the Secretary of State, in 
consultation with the Secretary of the Treasury, determines have 
knowingly ``sold, leased, or provided or facilitated selling, leasing, 
or providing those vessels [i.e., the vessels listed for having engaged 
in pipe-laying or pipe-laying activities at depths of 100 feet or more 
below sea level] for the construction of such a project.'' Such 
projects include Nord Stream 2, TurkStream, or any project that is a 
successor to either such project. Section 7503(a)(1)(B)(i) covers 
foreign persons who provide or finance the vessels and also covers 
certain forms of support provided to the vessels not already covered 
under Sections 7503(a)(1)(B)(ii-v).
    Additionally, Section 7503(a)(1)(B)(ii) covers foreign persons that 
the Secretary of State, in consultation with the Secretary of the 
Treasury, determines have knowingly facilitated deceptive or structured 
transactions to provide those vessels for the construction of such a 
project. Such projects include Nord Stream 2, TurkStream, or any 
project that is a successor to either such project.
    Further, Sections 7503(a)(1)(B)(iii)-(v) cover foreign persons that 
the Secretary of State, in consultation with the Secretary of the 
Treasury, determines have knowingly: Provided for those vessels 
underwriting services or insurance or reinsurance necessary or 
essential for the completion of any of the aforementioned projects; 
provided services or facilities for technology upgrades or installation 
of welding equipment for, or retrofitting or tethering of, those 
vessels if the services or facilities are necessary or essential for 
the completion of any of the aforementioned projects; or provided 
services for the testing, inspection, or certification necessary or 
essential for the completion or operation of the Nord Stream 2 
pipeline.

Q: Does PEESA provide for certain activities to be excepted from 
sanctions?

    A: PEESA, as amended, includes a number of exceptions specifying 
activities to which sanctions under PEESA shall not apply. For example, 
pursuant to Section 7503(e)(3) of PEESA, as amended, sanctions under 
this section shall not apply with respect to a person providing 
provisions to a vessel identified under Section 7503(a)(1)(A) if such 
provisions are intended for the safety and care of the crew aboard the 
vessel, the protection of human life aboard the vessel, or the 
maintenance of the vessel to avoid any environmental or other 
significant damage.
    Pursuant to Section 7503(e)(4) of PEESA, as amended, sanctions 
under this section shall not apply with respect to a person for 
engaging in activities necessary for or related to the repair or

[[Page 19686]]

maintenance of, or environmental remediation with respect to, Nord 
Stream 2, TurkStream, or any project that is a successor to either such 
project.
    Pursuant to Section 7503(e)(6) of PEESA, as amended, sanctions 
under this section shall not apply with respect to the European Union; 
the government of Norway, Switzerland, the United Kingdom or any member 
country of the European Union; or any entity of the European Union or a 
government noted herein that is not operating as a business enterprise.

Q. How does the U.S. government plan to implement the wind-down 
specified in Section 1242(f) of the National Defense Authorization Act 
for Fiscal Year 2021 (NDAA)?

    A: Upon passage of the FY2021 NDAA on January 1, 2021, the 
amendments made to PEESA pursuant to Section 1242(f) of the FY2021 NDAA 
immediately became effective. In accordance with the wind-down 
provision in Section 1242(f) of the FY2021 NDAA, persons that were 
knowingly engaged in conduct subject to sanctions under the amendments 
to PEESA would have needed to cease construction-related activity or 
engage in good faith efforts to wind down sanctionable activity no 
later than 30 days after PEESA, as amended, became effective. That date 
was January 31, 2021. The wind-down provision in Section 1242(f) of the 
FY2021 NDAA is not applicable to activities that were already subject 
to sanctions under Section 7503 of PEESA prior to the amendments in the 
FY2021 NDAA. Following the conclusion of the wind-down period, the 
Secretary of State, in consultation with the Secretary of the Treasury, 
is required to impose sanctions on those foreign persons that are 
determined to meet the criteria pursuant to Section 7503(a)(1)(B)(i-v) 
of PEESA, as amended, and who are not otherwise subject to the 
exceptions under PEESA, as amended.

Virginia E. Palmer,
Acting Assistant Secretary, Bureau of Energy Resources, Department of 
State.
[FR Doc. 2021-07662 Filed 4-13-21; 8:45 am]
BILLING CODE 4710-AE-P