[Federal Register Volume 79, Number 160 (Tuesday, August 19, 2014)]
[Rules and Regulations]
[Pages 48998-49001]
[FR Doc No: 2014-19557]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2014-0582; FRL-9915-30-Region 7]

Approval and Promulgation of Implementation Plans; State of
Missouri, Certain Coals To Be Washed

AGENCY: Environmental Protection Agency.

ACTION: Direct final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking direct
final action to approve a revision to the State Implementation Plan
(SIP) submitted by the State of Missouri on May 8, 2012, related to a
Missouri rule titled ``Certain Coals to be Washed.'' This rule requires
specified coals to be washed prior to sale in the St. Louis
metropolitan area. This action amends the SIP to update an outdated
reference in the rule.

DATES: This direct final rule will be effective October 20, 2014,
without further notice, unless EPA receives adverse comment by
September 18, 2014. If EPA receives adverse comment, we will publish a
timely withdrawal of the direct final rule in the Federal Register
informing the public that the rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R07-
OAR-2014-0582, by one of the following methods:
    1. www.regulations.gov. Follow the on-line instructions for
submitting comments.
    2. Email<EMAIL_ADDRESS>    3. Mail or Hand Delivery: Amy Bhesania, Environmental Protection
Agency, Air Planning and Development Branch, 11201 Renner Boulevard,
Lenexa, Kansas 66219.
    Instructions: Direct your comments to Docket ID No. EPA-R07-OAR-
2014-0582. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
www.regulations.gov, including any personal information provided,
unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit through www.regulations.gov or
email information that you consider to be CBI or otherwise protected.
The www.regulations.gov Web site is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an email
comment directly to EPA without going through www.regulations.gov, your
email address will be automatically captured and included as part of
the comment that is placed in the public docket and made available on
the Internet. If you submit an electronic comment, EPA recommends that
you include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If EPA cannot read your
comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
    Docket: All documents in the docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy
form. Publicly available docket materials are available either
electronically in www.regulations.gov or in hard copy at the
Environmental Protection Agency, Air Planning and Development Branch,
11201 Renner Boulevard, Lenexa, Kansas 66219. The Regional Office's
official hours of business are Monday through Friday, 8:00 to 4:30
excluding legal holidays. The interested persons wanting to examine
these documents should make an appointment with the office at least 24
hours in advance.

FOR FURTHER INFORMATION CONTACT: Amy Bhesania, Environmental Protection
Agency, Air Planning and Development Branch, 11201 Renner Boulevard,
Lenexa, Kansas 66219 at<PHONE_NUMBER>, or by email at
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' or
``our'' refer to EPA. This section provides additional information by
addressing the following:

I. What is being addressed in this document?
II. Have the requirements for approval of a SIP revision been met?
III. What action is EPA taking?

I. What is being addressed in this document?

    EPA is taking direct final action to approve a revision to the SIP
submitted by the State of Missouri on May 8, 2012, related to Missouri
rule 10 CSR 10-5.130, ``Certain Coals to be Washed.'' This rule
requires specified coals to be washed prior to sale in the St. Louis
metropolitan area. This action amends the SIP to update an outdated
reference in the rule. Specifically, the reference in 10 CSR 10-
5.130(3) relating to Missouri rule 10 CSR 10-5.030, ``Maximum Allowable
Emission of Particulate Matter from Fuel Burning Equipment Used for
Indirect Heating'' was removed and replaced with a reference to 10 CSR
10-6.405, ``Restriction of Particulate Matter Emissions From Fuel
Burning Equipment Used For Indirect Heating.'' On September 13, 2012,
EPA took action to amend the Missouri SIP which rescinded area specific
indirect heating rules, 10 CSR 10-2.040, 10-3.060, 10-4.040, and 10-
5.030 and added a new rule, 10 CSR 10-6.405 which consolidated the area
rules into a single rule. 76 FR 56555. Today's action approves the
amendment which updates the reference to the current SIP approved rule.

II. Have the requirements for approval of a SIP revision been met?

    The state submission has met the public notice requirements for SIP
submissions in accordance with 40 CFR 51.102. The submission also
satisfied the completeness criteria of 40 CFR part 51, appendix V. In
addition, the revision meets the substantive SIP requirements of the
CAA, including section 110 and implementing regulations.

III. What action is EPA taking?

    EPA is taking direct final action to approve this SIP revision. We
are publishing this rule without a prior proposed rule because we view
this as a noncontroversial action and anticipate no adverse comment.
However, in the ``Proposed Rules'' section of today's Federal Register,
we are publishing a separate document that will serve as the proposed
rule to approve this SIP revision if adverse comments are received on
this direct final rule. We will not institute a second comment period
on this action. Any parties interested in commenting must do so at this
time. For further information about commenting on this rule, see the
ADDRESSES section of this document.
    If EPA receives adverse comment, we will publish a timely
withdrawal in the Federal Register informing the public that this
direct final rule will not take effect. We will address all public
comments in any subsequent final rule based on the proposed rule.

Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a ``significant regulatory action'' under the terms
of Executive Order 12866 (58 FR 51735, October 4, 1993) and is
therefore not subject to review under Executive Orders 12866 and 13563
(76 FR 3821, January 21, 2011).
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities

under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by October 20, 2014. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. Parties with objections to this direct final rule are
encouraged to file a comment in response to the parallel notice of
proposed rulemaking for this action published in the proposed rules
section of today's Federal Register, rather than file an immediate
petition for judicial review of this direct final rule, so that EPA can
withdraw this direct final rule and address the comment in the proposed
rulemaking. This action may not be challenged later in proceedings to
enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: August 7, 2014.
Karl Brooks,
Regional Administrator, Region 7.
    For the reasons stated in the preamble, the Environmental
Protection Agency is amending 40 CFR part 52 as set forth below:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart AA--Missouri

0
2. In Sec.  52.1320, the table in paragraph (c) is amended by revising
the entry under ``Chapter 5--Air Quality Standards and Air Pollution
Control Regulations for the St. Louis Metropolitan Area'' for ``10-
5.130'' to read as follows:

Sec.  52.1320  Identification of plan.

* * * * *
    (c) * * *

                                        EPA-Approved Missouri Regulations
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                                                State  effective
 Missouri  citation            Title                  date           EPA approval date          Explanation
----------------------------------------------------------------------------------------------------------------
                                    Missouri Department of Natural Resources
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
   Chapter 5--Air Quality Standards and Air Pollution Control Regulations for the St. Louis Metropolitan Area
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
10-5.130............  Certain Coals To Be     05/30/2012.........  08/19/2014 [Insert     ......................
                       Washed.                                      Federal Register
                                                                    citation]

                                                  * * * * * * *
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* * * * *
[FR Doc. 2014-19557 Filed 8-18-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: February 27, 2006 (Volume 71, Number 38)]
[Notices]
[Page 9843-9845]
[DOCID:fr27fe06-79]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53331; File No. SR-CBOE-2006-17]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend a Pilot Program Relating to Market-Maker Bid-Ask
Width Requirements for Non-Hybrid System Classes

February 17, 2006.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 15, 2006, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The CBOE has filed this proposal pursuant to section 19(b)(3)(A)(iii)
of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the
proposal effective upon filing with the Commission.\5\ The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The CBOE has asked the Commission to waive the 30-day
operative delay provided in Rule 19b-4(f)(6)(iii). 17 CFR 240.19b-
4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The CBOE proposes to extend until February 17, 2007, a pilot
program establishing a limited exemption from the bid/ask differential
requirements of CBOE Rule 8.7(b)(iv). The text of the proposed rule
change appears below. Proposed new language is italicized; proposed
deletions are [bracketed].

Chicago Board Options Exchange, Incorporated Rules

* * * * *

Rule 8.7. Obligations of Market-Makers

    (a)-(e) No Change.
    * * * Interpretations and Policies:
    .01-.12 No Change.
    .13 Market-Makers will be exempt from the requirements of
subparagraph (b)(iv) of this Rule for a period of 30 seconds in cases
where the Exchange automatically adjusts one side of the disseminated
quote to one minimum increment below (above) the NBBO bid (offer): (1)
because the size associated with that quote has been exhausted by
automatic executions; or (2) to comply with the terms of the Plan for
the Purpose of Creating and Operating an Intermarket Option Linkage.
This exemption will be in effect until [February 17, 2006] February 17,
2007 on a pilot basis.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to extend until February 17, 2007, a
pilot program that provides a limited exemption from the Market-Maker
bid/ask differential requirements contained in CBOE Rule 8.7(b)(iv).\6\
As part of accommodating compliance with the Plan for the Purpose of
Creating and Operating an Intermarket Options Linkage (the ``Linkage
Plan''),\7\ the Exchange introduced an ``autofade'' functionality for
classes NOT trading on the CBOE's Hybrid platform (``Hybrid'') (there
are currently fewer than 10 classes that are not on Hybrid).\8\ Because
dynamic quoting is a feature of the Hybrid system, it does not require
the autofade enhancement. Autofade causes one side of the CBOE's
disseminated quote to move to an inferior price when the quote is
required to fade pursuant to the terms of the Linkage Plan and/or when
the size associated with the quote has been depleted by automatic
Retail Automatic Execution System (``RAES'') executions (of both
Linkage orders and non-Linkage orders). Without this enhancement, the
system would not change the quote as required.
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    \6\ The Commission approved the pilot program on September 10,
2003. See Securities Exchange Act Release No. 48471 (September 10,
2003), 68 FR 54251 (September 16, 2003) (order approving File No.
SR-CBOE-2003-08). The pilot program was subsequently extended for an
additional 18 months, until February 17, 2006. See Securities
Exchange Act Release No. 50292 (August 31, 2004), 69 FR 54167
(September 7, 2004) (notice of filing and immediate effectiveness of
File No. SR-CBOE-2004-39).
    \7\ The Commission approved the Linkage Plan on July 28, 2000.
See Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR
48023 (August 4, 2000).
    \8\ Hybrid is the CBOE's trading platform that allows individual
Market Makers to submit electronic quotes in their appointed
classes. See CBOE Rule 1.1(aaa).
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    Linkage orders are generally Immediate or Cancel limit orders
priced at the national best bid or offer (``NBBO'') that must be acted
upon within 15 seconds. The Linkage Plan provides several instances in
which a Participant receiving a Linkage order must fade its quote. For
example, if a Participant receives a Principal Acting as Agent (``PA'')
order for a size greater than the Firm Customer Quote Size and does not
execute the entirety of the PA Order within 15 seconds, the Participant
is required to fade its quote. The CBOE's autofade functionality
automates the fading process to ensure that members (and the Exchange)
are in full compliance with this aspect of the Linkage Plan. Autofade
moves the CBOE's quote to a price that is one tick inferior to the
NBBO.\9\ This ensures that the Exchange will not immediately receive
additional Linkage orders to allow the quote to refresh (either
manually or through an autoquote update).
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    \9\ The only exception is when CBOE's NBBO quote (or next best
quote) is represented by a customer order in the book. In such
cases, the Exchange does not fade a booked order (it would have to
be traded).
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    As mentioned above, autofade also applies any time an automatic
execution of any order via RAES has depleted the size of the CBOE's
quote. Once a quote is exhausted, autofade moves the quote to a price
that is one tick inferior to the NBBO, as described above. For equity
option classes that are not trading on the Hybrid System, the CBOE
quote is generally derived from an autoquote system that is maintained
by the

Designated Primary Market-Maker (``DPM''). Certain DPMs utilize an
Exchange-provided autoquote system, while others employ proprietary
autoquote systems. In either case, the autoquote system calculates bid
and ask prices that are transmitted to the Exchange for dissemination
to the Options Price Reporting Authority (``OPRA''). The DPM and the
trading crowd separately input the size associated with the bid/ask
prices. When an automatic execution occurs through the RAES system, the
size associated with the quote is decremented until it is exhausted.
However, because the autoquote system is only calculating prices and
not quote sizes, the autoquote system is not aware that the size has
been exhausted (or in the case of a remaining balance on a Linkage
order, that the quote needs to fade in order to comply with the Linkage
Plan). Therefore, the autofade functionality was built to override
autoquote and move the quote price to one tick inferior to the NBBO.
The ``override'' period only lasts for 30 seconds. However, the
override can be overridden during that 30-second time period if the
quote is manually updated by a trader or if the autoquote system
transmits new bid/ask pricing to the Exchange.
    The exemption established by the pilot program is for limited
instances where the autofade functionality moves the quote in a manner
that causes the quote width to widen beyond the bid/ask parameters
provided in CBOE Rule 8.7(b)(iv). The CBOE seeks to extend on a pilot
basis the temporary exception to the requirements of CBOE Rule
8.7(b)(iv) in cases where autofade causes a quote that exceeds the
quote width parameters of that rule. The proposed exemption period
lasts for a maximum of 30 seconds after any given autofade that caused
a quote wider than allowed under CBOE Rule 8.7(b)(iv). Thus, to the
extent a quote remained outside of the maximum width after the 30-
second time period, the responsible broker or dealer disseminating the
quote would be deemed in violation of CBOE Rule 8.7(b)(iv) for
regulatory purposes. The CBOE proposes to extend the pilot for one more
year, until February 17, 2007.
2. Statutory Basis
    The CBOE believes that the proposed rule change will, among other
things, allow the Exchange to more easily comply with the requirements
of the Linkage Plan. Accordingly, the Exchange believes the proposed
rule change is consistent with section 6(b) of the Act,\10\ in general,
and furthers the objectives of section 6(b)(5) of the Act,\11\ in
particular, in that it should promote just and equitable principles of
trade, serve to remove impediments to, and perfect the mechanism of, a
free and open market and a national market system, and protect
investors and the public interest.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOE 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The CBOE neither solicited nor received comments on the proposal.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The CBOE has designated the proposed rule change as one that: (i)
Does not significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) does not become operative for 30 days from the date of
filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest. In
addition, as required under Rule 19b-4(f)(6)(iii),\12\ the CBOE
provided the Commission with written notice of its intention to file
the proposed rule change, along with a brief description and the text
of the proposed rule change, at least five business days prior to
filing the proposal with the Commission. Therefore, the foregoing rule
change has become effective pursuant to section 19(b)(3)(A) of the Act
\13\ and Rule 19b-4(f)(6) thereunder.\14\
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    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
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    Pursuant to Rule 19b-4(f)(6)(iii) under the Act, a proposal does
not become operative for 30 days after the date of its filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest. The CBOE has asked the
Commission to waive the 30-day operative delay to allow the pilot
program to continue without interruption.
    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the pilot program to continue to operate without
interruption through February 17, 2007.\15\ Accordingly, the Commission
waives the 30-day operative delay.
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    \15\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.

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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-CBOE-2006-17 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

    All submissions should refer to File No. SR-CBOE-2006-17. This file
number should be included on the subject line if e-mail 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 Web site (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 inspection and
copying in the Commission's Public Reference

Room. 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; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File No. SR-CBOE-2006-17 and should be submitted on or
before March 20, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. 06-1733 Filed 2-24-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: June 22, 2006 (Volume 71, Number 120)]
[Notices]
[Page 35883]
[DOCID:fr22jn06-62]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP06-391-000]

USGen New England, Inc.; Notice of Petition for Declaratory Order

June 15, 2006.
    Take notice that on June 14, 2006, USGen New England, Inc. (USGen),
filed a petition for a declaratory order pursuant to Rule 207 of the
Commission's Rules and Regulations (18 CFR 385.207) declaring that (1)
USGen is not contractually precluded from filing a Section 5 complaint
against Tennessee Gas Pipeline Company (Tennessee) challenging the
reasonableness of its rates and fuel charges; and (2) Tennessee's
tariff does not address the calculation of damages or mitigation of
damages arising from a breach by a shipper, and state law consequently
governs the determination of the mitigation of damages in the event of
a breach.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed on or before the comment date. On or
before the comment date, it is not necessary to serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible online at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on June 30, 2006.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-9812 Filed 6-21-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register: November 29, 2010 (Volume 75, Number 228)]
[Notices]
[Page 73065-73066]
[DOCID:fr29no10-60]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP11-22-000]

Tennessee Gas Pipeline Company; Notice of Application

November 18, 2010.
    Take notice that on November 5, 2010 Tennessee Gas Pipeline Company
(Tennessee), 1001 Louisiana Street, Houston, Texas 77002, filed in
Docket No. CP11-22-000, an application pursuant to section 3 of the
Natural Gas Act (NGA), to amend its authorization under NGA section 3
and Presidential Permits to allow it to import and export natural gas
from the United States to Canada utilizing Tennessee's existing cross-
border facilities. Specifically, Tennessee proposes that its
Presidential Permits be amended and reissued, and authorizations under
Section 3 of the NGA be amended to authorize Tennessee to operate bi-
directionally two existing international border crossings between
Canada and the United States located near Niagara Falls, New York.
Tennessee proposes no new facilities, all as more fully set forth in
the application which is on file with the Commission and open to public
inspection. This filing may also be viewed on the Commission's Web site
at http://www.ferc.gov using the ``eLibrary'' link. Enter the docket
number, excluding the last three digits, in the docket number field to
access the document. For assistance, call<PHONE_NUMBER> or TTY, (202)
208-3676.
    Any questions regarding this application should be directed to Mr.
Thomas Joyce, Manager, Certificates, Tennessee Gas Pipeline Company,
1001 Louisiana Street, Houston, Texas 77002, phone<PHONE_NUMBER> or
facsimile<PHONE_NUMBER> or e-mail<EMAIL_ADDRESS>    There are two ways to become involved in the Commission's review of
this project. First, any person wishing to obtain legal status by
becoming a party to the proceedings for this project should, on or
before the below listed comment date, file with the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, a
motion to intervene in accordance with the requirements of the
Commission's Rules of Practice and Procedure (18 CFR 385.214 or
385.211) and the Regulations under the NGA (18 CFR 157.10). A person
obtaining party status will be placed on the service list maintained by
the Secretary of the Commission and will receive copies of all
documents filed by the applicant and

by all other parties. A party must submit 14 copies of filings made
with the Commission and must mail a copy to the applicant and to every
other party in the proceeding. Only parties to the proceeding can ask
for court review of Commission orders in the proceeding.
    However, a person does not have to intervene in order to have
comments considered. The second way to participate is by filing with
the Secretary of the Commission, as soon as possible, an original and
two copies of comments in support of or in opposition to this project.
The Commission will consider these comments in determining the
appropriate action to be taken, but the filing of a comment alone will
not serve to make the filer a party to the proceeding. The Commission's
rules require that persons filing comments in opposition to the project
provide copies of their protests only to the party or parties directly
involved in the protest.
    Motions to intervene, protests and comments may be filed
electronically via the Internet in lieu of paper; see, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.
    Comment Date: December 9, 2010.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-29846 Filed 11-26-10; 8:45 am]
BILLING CODE 6717-01-P


Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 1 For the reasons set out in the preamble, title 40, chapter I of the Code of Federal Regulations is amended as follows:

PART 51  [ AMENDED]

1. The authority citation for part 51 continues to read as follows:

Authority: 23 U. S. C. 101; 42 U. S. C. 7401 7671q.

Subpart I  [ Amended]

2. Section 51.165 is amended:

a. By revising paragraph ( a)( 1)( v)( C)( 1).

b. By adding paragraphs ( a)( 1)( xliii) through ( xlvi),

and paragraphs ( h) and ( i).

The revision and additions read as follows:

§ 51.165 Permit requirements.

( a) * * *

( 1) * * *

( v) * * *

( C) * * *

( 1) Routine maintenance, repair and replacement.

Routine maintenance, repair and replacement shall include,

but not be limited to, any activity( s) that meets the requirements of the equipment replacement provisions contained in paragraph ( h) of this section.

* * * * * Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 2 ( xliii)( A) In general, process unit means any collection of structures and/ or equipment that processes,

assembles, applies, blends, or otherwise uses material inputs to produce or store an intermediate or a completed product. A single stationary source may contain more than one process unit, and a process unit may contain more than one emissions unit.

( B) Pollution control equipment is not part of the process unit, unless it serves a dual function as both process and control equipment. Administrative and warehousing facilities are not part of the process unit.

( C) For replacement cost purposes, components shared between two or more process units are proportionately allocated based on capacity.

( D) The following list identifies the process units at specific categories of stationary sources.

( 1) For a steam electric generating facility, the process unit consists of those portions of the plant that contribute directly to the production of electricity. For example, at a pulverized coal fired facility, the process unit would generally be the combination of those systems from the coal receiving equipment through the emission stack ( excluding post combustion pollution controls), including Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 3 the coal handling equipment, pulverizers or coal crushers,

feedwater heaters, ash handling, boiler, burners,

turbinegenerator set, condenser, cooling tower, water treatment system, air preheaters, and operating control systems. Each separate generating unit is a separate process unit.

( 2) For a petroleum refinery, there are several categories of process units: those that separate and/ or distill petroleum feedstocks; those that change molecular structures; petroleum treating processes; auxiliary facilities, such as steam generators and hydrogen production units; and those that load, unload, blend or store intermediate or completed products.

( 3) For an incinerator, the process unit would consist of components from the feed pit or refuse pit to the stack,

including conveyors, combustion devices, heat exchangers and steam generators, quench tanks, and fans.

( xliv) Functionally equivalent component means a component that serves the same purpose as the replaced component.

( xlv) Fixed capital cost means the capital needed to provide all the depreciable components. " Depreciable components" refers to all components of fixed capital cost and is calculated by subtracting land and working capital Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 4 from the total capital investment, as defined in paragraph ( a)( 1)( xlvi) of this section.

( xlvi) Total capital investment means the sum of the following: all costs required to purchase needed process equipment ( purchased equipment costs); the costs of labor and materials for installing that equipment ( direct installation costs); the costs of site preparation and buildings; other costs such as engineering, construction and field expenses, fees to contractors, startup and performance tests, and contingencies ( indirect installation costs); land for the process equipment; and working capital for the process equipment.

* * * * *

( h) Equipment Replacement Provision. Without regard to other considerations, routine maintenance, repair and replacement includes, but is not limited to, the replacement of any component of a process unit with an identical or functionally equivalent component( s), and maintenance and repair activities that are part of the replacement activity,

provided that all of the requirements in paragraphs ( h)( 1)

through ( 3) of this section are met.

( 1) Capital Cost threshold for Equipment Replacement ( i) For an electric utility steam generating unit, as Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 5 defined in 51.165( a)( 1)( xx), the fixed capital cost of the replacement component( s) plus the cost of any associated maintenance and repair activities that are part of the replacement shall not exceed 20 percent of the replacement value of the process unit, at the time the equipment is replaced. For a process unit that is not an electric utility steam generating unit the fixed capital cost of the replacement component( s) plus the cost of any associated maintenance and repair activities that are part of the replacement shall not exceed 20 percent of the replacement value of the process unit, at the time the equipment is replaced.

( ii) In determining the replacement value of the process unit; and, except as otherwise allowed under paragraph ( h)( 1)( iii) of this section, the owner or operator shall determine the replacement value of the process unit on an estimate of the fixed capital cost of constructing a new process unit, or on the current appraised value of the process unit.

( iii) As an alternative to paragraph ( h)( 1)( ii) of this section for determining the replacement value of a process unit, an owner or operator may choose to use insurance value ( where the insurance value covers only Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 6 complete replacement), investment value adjusted for inflation, or another accounting procedure if such procedure is based on Generally Accepted Accounting Principles,

provided that the owner or operator sends a notice to the reviewing authority. The first time that an owner or operator submits such a notice for a particular process unit, the notice may be submitted at any time, but any subsequent notice for that process unit may be submitted only at the beginning of the process unit's fiscal year.

Unless the owner or operator submits a notice to the reviewing authority, then paragraph ( h)( 1)( ii) of this section will be used to establish the replacement value of the process unit. Once the owner or operator submits a notice to use an alternative accounting procedure, the owner or operator must continue to use that procedure for the entire fiscal year for that process unit. In subsequent fiscal years, the owner or operator must continue to use this selected procedure unless and until the owner or operator sends another notice to the reviewing authority selecting another procedure consistent with this paragraph or paragraph ( h)( 1)( ii) of this section at the beginning of such fiscal year.

( 2) Basic Design Parameters. The replacement does not Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 7 change the basic design parameter( s) of the process unit to which the activity pertains.

( i) Except as provided in paragraph ( h)( 2)( iii) of this section, for a process unit at a steam electric generating facility, the owner or operator may select as its basic design parameters either maximum hourly heat input and maximum hourly fuel consumption rate or maximum hourly electric output rate and maximum steam flow rate. When establishing fuel consumption specifications in terms of weight or volume, the minimum fuel quality based on British Thermal Units content shall be used for determining the basic design parameter( s) for a coal fired electric utility steam generating unit.

( ii) Except as provided in paragraph ( h)( 2)( iii) of this section, the basic design parameter( s) for any process unit that is not at a steam electric generating facility are maximum rate of fuel or heat input, maximum rate of material input, or maximum rate of product output. Combustion process units will typically use maximum rate of fuel input.

For sources having multiple end products and raw materials,

the owner or operator should consider the primary product or primary raw material when selecting a basic design parameter. Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 8 ( iii) If the owner or operator believes the basic design parameter( s) in paragraphs ( h)( 2)( i) and ( ii) of this section is not appropriate for a specific industry or type of process unit, the owner or operator may propose to the reviewing authority an alternative basic design parameter( s)

for the source's process unit( s). If the reviewing authority approves of the use of an alternative basic design parameter( s), the reviewing authority shall issue a permit that is legally enforceable that records such basic design parameter( s) and requires the owner or operator to comply with such parameter( s).

( iv) The owner or operator shall use credible information, such as results of historic maximum capability tests, design information from the manufacturer, or engineering calculations, in establishing the magnitude of the basic design parameter( s) specified in paragraphs ( h)( 2)( i) and ( ii) of this section.

( v) If design information is not available for a process unit, then the owner or operator shall determine the process unit's basic design parameter( s) using the maximum value achieved by the process unit in the five year period immediately preceding the planned activity.

( vi) Efficiency of a process unit is not a basic Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 9 design parameter.

( 3) The replacement activity shall not cause the process unit to exceed any emission limitation, or operational limitation that has the effect of constraining emissions, that applies to the process unit and that is legally enforceable. Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 10 3. Section 51.166 is amended:

a. By revising paragraph ( b)( 2)( iii)( a).

b. By adding paragraphs ( b)( 53) through ( 56), and paragraphs ( y) and ( z).

The revision and additions read as follows:

§ 51.166 Prevention of significant deterioration of air quality.

( b) * * *

( 2) * * *

( iii) * * *

( a) Routine maintenance, repair and replacement.

Routine maintenance, repair and replacement shall include,

but not be limited to, any activity( s) that meets the requirements of the equipment replacement provisions contained in paragraph ( y) of this section.

* * * * *

( 53)( i) In general, process unit means any collection of structures and/ or equipment that processes, assembles,

applies, blends, or otherwise uses material inputs to produce or store an intermediate or a completed product. A single stationary source may contain more than one process unit, and a process unit may contain more than one emissions unit. Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 11 ( ii) Pollution control equipment is not part of the process unit, unless it serves a dual function as both process and control equipment. Administrative and warehousing facilities are not part of the process unit.

( iii) For replacement cost purposes, components shared between two or more process units are proportionately allocated based on capacity.

( iv) The following list identifies the process units at specific categories of stationary sources.

( a) For a steam electric generating facility, the process unit consists of those portions of the plant that contribute directly to the production of electricity. For example, at a pulverized coal fired facility, the process unit would generally be the combination of those systems from the coal receiving equipment through the emission stack ( excluding post combustion pollution controls), including the coal handling equipment, pulverizers or coal crushers,

feedwater heaters, ash handling, boiler, burners,

turbinegenerator set, condenser, cooling tower, water treatment system, air preheaters, and operating control systems. Each separate generating unit is a separate process unit.

( b) For a petroleum refinery, there are several categories of process units: those that separate and/ or Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 12 distill petroleum feedstocks; those that change molecular structures; petroleum treating processes; auxiliary facilities, such as steam generators and hydrogen production units; and those that load, unload, blend or store intermediate or completed products.

( c) For an incinerator, the process unit would consist of components from the feed pit or refuse pit to the stack,

including conveyors, combustion devices, heat exchangers and steam generators, quench tanks, and fans.

( 54) Functionally equivalent component means a component that serves the same purpose as the replaced component.

( 55) Fixed capital cost means the capital needed to provide all the depreciable components. " Depreciable components" refers to all components of fixed capital cost and is calculated by subtracting land and working capital from the total capital investment, as defined in paragraph ( b)( 56) of this section.

( 56) Total capital investment means the sum of the following: all costs required to purchase needed process equipment ( purchased equipment costs); the costs of labor and materials for installing that equipment ( direct installation costs); the costs of site preparation and Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 13 buildings; other costs such as engineering, construction and field expenses, fees to contractors, startup and performance tests, and contingencies ( indirect installation costs); land for the process equipment; and working capital for the process equipment.

* * * * *

( y) Equipment Replacement Provision. Without regard to other considerations, routine maintenance, repair and replacement includes, but is not limited to, the replacement of any component of a process unit with an identical or functionally equivalent component( s), and maintenance and repair activities that are part of the replacement activity,

provided that all of the requirements in paragraphs ( y)( 1)

through ( 3) of this section are met.

( 1) Capital Cost threshold for Equipment Replacement ( i) For an electric utility steam generating unit, as defined in 51.166( b)( 30), the fixed capital cost of the replacement component( s) plus the cost of any associated maintenance and repair activities that are part of the replacement shall not exceed 20 percent of the replacement value of the process unit, at the time the equipment is replaced. For a process unit that is not an electric utility steam generating unit the fixed capital cost of the Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 14 replacement component( s) plus the cost of any associated maintenance and repair activities that are part of the replacement shall not exceed 20 percent of the replacement value of the process unit, at the time the equipment is replaced.

( ii) In determining the replacement value of the process unit; and, except as otherwise allowed under paragraph ( y)( 1)( iii) of this section, the owner or operator shall determine the replacement value of the process unit on an estimate of the fixed capital cost of constructing a new process unit, or on the current appraised value of the process unit.

( iii) As an alternative to paragraph ( y)( 1)( ii) of this section for determining the replacement value of a process unit, an owner or operator may choose to use insurance value ( where the insurance value covers only complete replacement), investment value adjusted for inflation, or another accounting procedure if such procedure is based on Generally Accepted Accounting Principles,

provided that the owner or operator sends a notice to the reviewing authority. The first time that an owner or operator submits such a notice for a particular process unit, the notice may be submitted at any time, but any Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 15 subsequent notice for that process unit may be submitted only at the beginning of the process unit's fiscal year.

Unless the owner or operator submits a notice to the reviewing authority, then paragraph ( y)( 1)( ii) of this section will be used to establish the replacement value of the process unit. Once the owner or operator submits a notice to use an alternative accounting procedure, the owner or operator must continue to use that procedure for the entire fiscal year for that process unit. In subsequent fiscal years, the owner or operator must continue to use this selected procedure unless and until the owner or operator sends another notice to the reviewing authority selecting another procedure consistent with this paragraph or paragraph ( y)( 1)( ii) of this section at the beginning of such fiscal year.

( 2) Basic Design Parameters. The replacement does not change the basic design parameter( s) of the process unit to which the activity pertains.

( i) Except as provided in paragraph ( y)( 2)( iii) of this section, for a process unit at a steam electric generating facility, the owner or operator may select as its basic design parameters either maximum hourly heat input and maximum hourly fuel consumption rate or maximum hourly Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 16 electric output rate and maximum steam flow rate. When establishing fuel consumption specifications in terms of weight or volume, the minimum fuel quality based on British Thermal Units content shall be used for determining the basic design parameter( s) for a coal fired electric utility steam generating unit.

( ii) Except as provided in paragraph ( y)( 2)( iii) of this section, the basic design parameter( s) for any process unit that is not at a steam electric generating facility are maximum rate of fuel or heat input, maximum rate of material input, or maximum rate of product output. Combustion process units will typically use maximum rate of fuel input.

For sources having multiple end products and raw materials,

the owner or operator should consider the primary product or primary raw material when selecting a basic design parameter.

( iii) If the owner or operator believes the basic design parameter( s) in paragraphs ( y)( 2)( i) and ( ii) of this section is not appropriate for a specific industry or type of process unit, the owner or operator may propose to the reviewing authority an alternative basic design parameter( s)

for the source's process unit( s). If the reviewing authority approves of the use of an alternative basic design Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 17 parameter( s), the reviewing authority shall issue a permit that is legally enforceable that records such basic design parameter( s) and requires the owner or operator to comply with such parameter( s).

( iv) The owner or operator shall use credible information, such as results of historic maximum capability tests, design information from the manufacturer, or engineering calculations, in establishing the magnitude of the basic design parameter( s) specified in paragraphs ( y)( 2)( i) and ( ii) of this section.

( v) If design information is not available for a process unit, then the owner or operator shall determine the process unit's basic design parameter( s) using the maximum value achieved by the process unit in the five year period immediately preceding the planned activity.

( vi) Efficiency of a process unit is not a basic design parameter.

( 3) The replacement activity shall not cause the process unit to exceed any emission limitation, or operational limitation that has the effect of constraining emissions, that applies to the process unit and that is legally enforceable. Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 18 PART 52  [ Amended]

1. The authority citation for part 52 continues to read as follows:

Authority: 42 U. S. C. 7401, et seq.

Subpart A  [ Amended]

2. Section 52.21 is amended:

a. By revising paragraph ( b)( 2)( iii)( a).

b. By adding paragraphs ( b)( 55) through ( 58), and paragraphs ( cc) and ( dd).

The revision and additions read as follows:

§ 52.21 Prevention of significant deterioration of air quality.

( b) * * *

( 2) * * *

( iii) * * *

( a) Routine maintenance, repair and replacement.

Routine maintenance, repair and replacement shall include,

but not be limited to, any activity( s) that meets the requirements of the equipment replacement provisions contained in paragraph ( cc) of this section.

* * * * *

( 55)( i) In general, process unit means any collection of structures and/ or equipment that processes, assembles, Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 19 applies, blends, or otherwise uses material inputs to produce or store an intermediate or a completed product. A single stationary source may contain more than one process unit, and a process unit may contain more than one emissions unit.

( ii) Pollution control equipment is not part of the process unit, unless it serves a dual function as both process and control equipment. Administrative and warehousing facilities are not part of the process unit.

( iii) For replacement cost purposes, components shared between two or more process units are proportionately allocated based on capacity.

( iv) The following list identifies the process units at specific categories of stationary sources.

( a) For a steam electric generating facility, the process unit consists of those portions of the plant that contribute directly to the production of electricity. For example, at a pulverized coal fired facility, the process unit would generally be the combination of those systems from the coal receiving equipment through the emission stack ( excluding post combustion pollution controls), including the coal handling equipment, pulverizers or coal crushers,

feedwater heaters, ash handling, boiler, burners, turbine Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 20 generator set, condenser, cooling tower, water treatment system, air preheaters, and operating control systems. Each separate generating unit is a separate process unit.

( b) For a petroleum refinery, there are several categories of process units: those that separate and/ or distill petroleum feedstocks; those that change molecular structures; petroleum treating processes; auxiliary facilities, such as steam generators and hydrogen production units; and those that load, unload, blend or store intermediate or completed products.

( c) For an incinerator, the process unit would consist of components from the feed pit or refuse pit to the stack,

including conveyors, combustion devices, heat exchangers and steam generators, quench tanks, and fans.

( 56) Functionally equivalent component means a component that serves the same purpose as the replaced component.

( 57) Fixed capital cost means the capital needed to provide all the depreciable components. " Depreciable components" refers to all components of fixed capital cost and is calculated by subtracting land and working capital from the total capital investment, as defined in paragraph ( b)( 58) of this section. Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 21 ( 58) Total capital investment means the sum of the following: all costs required to purchase needed process equipment ( purchased equipment costs); the costs of labor and materials for installing that equipment ( direct installation costs); the costs of site preparation and buildings; other costs such as engineering, construction and field expenses, fees to contractors, startup and performance tests, and contingencies ( indirect installation costs); land for the process equipment; and working capital for the process equipment.

* * * * *

( cc) Without regard to other considerations, routine maintenance, repair and replacement includes, but is not limited to, the replacement of any component of a process unit with an identical or functionally equivalent component( s), and maintenance and repair activities that are part of the replacement activity, provided that all of the requirements in paragraphs ( cc)( 1) through ( 3) of this section are met.

( 1) Capital Cost threshold for Equipment Replacement ( i) For an electric utility steam generating unit, as defined in 52.21( b)( 31), the fixed capital cost of the replacement component( s) plus the cost of any associated Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 22 maintenance and repair activities that are part of the replacement shall not exceed 20 percent of the replacement value of the process unit, at the time the equipment is replaced. For a process unit that is not an electric utility steam generating unit the fixed capital cost of the replacement component( s) plus the cost of any associated maintenance and repair activities that are part of the replacement shall not exceed 20 percent of the replacement value of the process unit, at the time the equipment is replaced.

( ii) In determining the replacement value of the process unit; and, except as otherwise allowed under paragraph ( cc)( 1)( iii) of this section, the owner or operator shall determine the replacement value of the process unit on an estimate of the fixed capital cost of constructing a new process unit, or on the current appraised value of the process unit.

( iii) As an alternative to paragraph ( cc)( 1)( ii) of this section for determining the replacement value of a process unit, an owner or operator may choose to use insurance value ( where the insurance value covers only complete replacement), investment value adjusted for inflation, or another accounting procedure if such procedure Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 23 is based on Generally Accepted Accounting Principles,

provided that the owner or operator sends a notice to the reviewing authority. The first time that an owner or operator submits such a notice for a particular process unit, the notice may be submitted at any time, but any subsequent notice for that process unit may be submitted only at the beginning of the process unit's fiscal year.

Unless the owner or operator submits a notice to the reviewing authority, then paragraph ( cc)( 1)( ii) of this section will be used to establish the replacement value of the process unit. Once the owner or operator submits a notice to use an alternative accounting procedure, the owner or operator must continue to use that procedure for the entire fiscal year for that process unit. In subsequent fiscal years, the owner or operator must continue to use this selected procedure unless and until the owner or operator sends another notice to the reviewing authority selecting another procedure consistent with this paragraph or paragraph ( cc)( 1)( ii) of this section at the beginning of such fiscal year.

( 2) Basic Design Parameters. The replacement does not change the basic design parameter( s) of the process unit to which the activity pertains. Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 24 ( i) Except as provided in paragraph ( cc)( 2)( iii) of this section, for a process unit at a steam electric generating facility, the owner or operator may select as its basic design parameters either maximum hourly heat input and maximum hourly fuel consumption rate or maximum hourly electric output rate and maximum steam flow rate. When establishing fuel consumption specifications in terms of weight or volume, the minimum fuel quality based on British Thermal Units content shall be used for determining the basic design parameter( s) for a coal fired electric utility steam generating unit.

( ii) Except as provided in paragraph ( cc)( 2)( iii) of this section, the basic design parameter( s) for any process unit that is not at a steam electric generating facility are maximum rate of fuel or heat input, maximum rate of material input, or maximum rate of product output. Combustion process units will typically use maximum rate of fuel input.

For sources having multiple end products and raw materials,

the owner or operator should consider the primary product or primary raw material when selecting a basic design parameter.

( iii) If the owner or operator believes the basic design parameter( s) in paragraphs ( cc)( 2)( i) and ( ii) of Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 25 this section is not appropriate for a specific industry or type of process unit, the owner or operator may propose to the reviewing authority an alternative basic design parameter( s) for the source's process unit( s). If the reviewing authority approves of the use of an alternative basic design parameter( s), the reviewing authority shall issue a permit that is legally enforceable that records such basic design parameter( s) and requires the owner or operator to comply with such parameter( s).

( iv) The owner or operator shall use credible information, such as results of historic maximum capability tests, design information from the manufacturer, or engineering calculations, in establishing the magnitude of the basic design parameter( s) specified in paragraphs ( cc)( 2)( i) and ( ii) of this section.

( v) If design information is not available for a process unit, then the owner or operator shall determine the process unit's basic design parameter( s) using the maximum value achieved by the process unit in the five year period immediately preceding the planned activity.

( vi) Efficiency of a process unit is not a basic design parameter.

( 3) The replacement activity shall not cause the Internal and Deliberative Draft  Do not quote, cite, copy, or distribute August 27, 2003 26 process unit to exceed any emission limitation, or operational limitation that has the effect of constraining emissions, that applies to the process unit and that is legally enforceable.


[Federal Register Volume 83, Number 6 (Tuesday, January 9, 2018)]
[Notices]
[Pages 1046-1050]
[FR Doc No: 2018-00159]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82434; File No. SR-DTC-2017-024]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of Proposed Rule Change To Amend Procedures in the DTC
Settlement Service Guide Relating to the Intra-Month Collection of
Required Participants Fund Deposits

January 3, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 22, 2017, The Depository Trust Company (``DTC'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II and III below, which Items have
been prepared by the clearing agency. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change of DTC is annexed hereto as Exhibit 5.\3\
The proposed rule change would amend the Procedures, set forth in the
Settlement Guide, relating to the amount a Participant is required to
Deposit to the Participants Fund to satisfy a deficiency in its
Required Participants Fund Deposit (``Deficiency''),\4\ as a result of
an

increase in its Required Participants Fund Deposit calculated on an
intra-month basis, i.e., on a Business Day \5\ other than the last
Business Day of a month, as described below. Specifically, the proposed
rule change would codify in the Settlement Guide the practice currently
followed by DTC, to determine the ``Reference Amount'' (as defined
below) used by DTC, in conjunction with the existing methodology that
determines whether a Participant must Deposit an additional amount to
the Participants Fund to satisfy a Deficiency that occurs intra-
month.\6\ In addition, the proposed rule change would codify a practice
used by DTC relating to calculating a threshold amount, for any intra-
month increase in the Required Participants Fund Deposit for a
Participant that has been placed on the Watch List \7\ (``Watch List
Threshold''), to determine whether the Participant must Deposit an
additional amount to the Participants Fund to satisfy a Deficiency that
occurs intra-month. The proposed rule change would provide that the
Watch List Threshold would be lower than the Standard Threshold (as
defined below).\8\ The proposed rule change would also include
technical and clarifying changes to the text of the Settlement Guide
(a) for enhanced readability, (b) to make grammatical corrections, and
(c) to add new section headings, as discussed below.
---------------------------------------------------------------------------

    \3\ Each capitalized term not otherwise defined herein has its
respective meaning as set forth in the Rules, By-Laws and
Organization Certificate of The Depository Trust Company
(``Rules''), available at http://www.dtcc.com/legal/rules-and-procedures.aspx and the DTC Settlement Service Guide (``Settlement
Guide''), available at http://www.dtcc.com/~/media/Files/Downloads/
legal/service-guides/Settlement.pdf.
    \4\ The Required Participants Fund Deposit of a Participant is
the amount the Participant is required to Deposit to the
Participants Fund pursuant to Section 1 of Rule 4. Rule 4, Section
1, supra note 3. The Participants Fund, described more fully below,
is provided for in Rule 4. Rule 4, supra note 3. Deposit, in this
context, pursuant to Section 1 of Rule 1, means causing the
appropriate amount in cash to be paid to DTC for credit to the
Participants Fund pursuant to Section 1 of Rule 4. Rule 1, Section
1, supra note 3. The Settlement Guide, which is proposed to be
amended hereby, sets forth Procedures for the calculation and
payment of the Required Participants Fund Deposit. See Settlement
Guide, supra note 3 at 47-50. Procedures, in this context, pursuant
to Section 1 of Rule 1, means ``the Procedures, service guides, and
regulations of DTC adopted pursuant to Rule 27, as amended from time
to time.'' Rule 1, Section 1, supra note 3. The Settlement Guide
constitutes Procedures of DTC, as defined in the Rules. See
Settlement Guide, supra note 3 at 1.
    \5\ The term ``Business Day'' means any day on which DTC is open
for business. Rule 1, Section 1, supra note 3.
    \6\ See Settlement Guide, supra note 3 at 50-51 (describing this
methodology).
    \7\ The term ``Watch List'' means, at any time and from time to
time, the list of Participants whose credit ratings derived from the
Credit Risk Rating Matrix are 5, 6 or 7, as well as Participants
that, based on the Corporation's consideration of relevant factors,
including those set forth in Section 10 of Rule 2, are deemed by the
Corporation to pose a heightened risk to the Corporation and its
Participants. Rule 1, Section 1, supra note 3. Rule 1 states: ``The
term ``Credit Risk Rating Matrix'' means a matrix of credit ratings
of Participants specified in Section 10(a) of Rule 2. The matrix is
developed by the Corporation to evaluate the credit risk such
Participants pose to the Corporation and its Participants and is
based on factors determined to be relevant by the Corporation from
time to time, which factors are designed to collectively reflect the
financial and operational condition of a Participant. These factors
include (i) quantitative factors, such as capital, assets, earnings,
and liquidity, and (ii) qualitative factors, such as management
quality, market position/environment, and capital and liquidity risk
management.'' Id.
    \8\ Pursuant to the Settlement Guide, if there is a significant
increase to the Participant's Required Participants Fund Deposit as
calculated on an intra-month Business Day, such that the increase
meets a certain threshold amount (``Standard Threshold''), the
Participant is required to Deposit the difference between its Actual
Participants Fund Deposit and its Required Participants Fund
Deposit. See Settlement Guide, supra note 3 at 50-51.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. The clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

1. Purpose
    The proposed rule change would amend the Procedures set forth in
the Settlement Guide relating to the amount a Participant is required
to Deposit \9\ to the Participants Fund to satisfy a Deficiency, due to
an increase to its Required Participants Fund Deposit, as calculated on
an intra-month basis, as described below.\10\ Specifically, the
proposed rule change would codify the practices currently followed by
DTC with respect to (i) determining the Reference Amount for a
Participant (as described below) and (ii) the application of the Watch
List Threshold, as described below. The proposed rule change would also
include technical and clarifying changes to the text of the Settlement
Guide (a) for enhanced readability, (b) to make grammatical
corrections, and (c) to add new section headings, as discussed below.
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    \9\ Deposit, in this context, pursuant to Section 1 of Rule 1,
means causing the appropriate amount in cash to be paid to DTC for
credit to the Participants Fund pursuant to Section 1 of Rule 4.
Rule 1, Section 1, supra note 3.
    \10\ See Id.
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Background
    DTC maintains a cash Participants Fund in an aggregate amount based
on maintaining liquidity resources sufficient to complete net
settlement among non-defaulting Participants if a Participant, or
Affiliated Family of Participants, with the largest net settlement
obligation failed to settle.\11\ The Settlement Guide describes the
methodology for the calculation and procedures for payment of Required
Participants Fund Deposits.\12\ The aggregate Required Participants
Fund Deposits must equal $1.15 billion (BN); however, Participants may
make Voluntary Participants Fund Deposits to support their
activity.\13\ The minimum Required Participants Fund Deposit for each
Participant is $7,500.\14\ The Required Participants Fund Deposit for
each Participant is calculated based on a 60 business-day rolling
average (``60-day Rolling Average'') of the Participant's highest
intra-day Net Debit Balance peaks, to allocate ratably the first $450
million (``MM'') of the aggregate Participants Fund.\15\ An additional
algorithm proportionally allocates an additional $700 MM among
Participants whose Affiliated Family's Net Debit Caps exceed $2.15
BN.\16\ If a Participant defaults, its Actual Participants Fund Deposit
(the Required Participants Fund Deposit plus its Voluntary Participants
Fund Deposit) may be applied to satisfy any liability or loss due to
its default, including liquidity to complete settlement.\17\
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    \11\ The DTC net settlement system and the Rules are structured
so that the net settlement obligation of a Participant (its Net
Debit Balance) is limited by its Net Debit Cap. See Settlement
Guide, supra note 3 at 65. The maximum Net Debit Cap of any
Participant is $1.8 BN and the maximum Net Debit Cap for an
Affiliated Family of Participants is $2.85 BN. See Settlement Guide,
supra note 3 at 65-66. These limits are determined based on
liquidity resources available to DTC in the cash Participants Fund
or under a committed line of credit from a syndicate of commercial
lenders for $1.9 BN (``Line of Credit''). Id.
    \12\ Settlement Guide, supra note 3 at 47-50.
    \13\ Rule 4, Section 3, supra note 3. The term ``Voluntary
Participants Fund Deposit'' of a Participant means, any amount the
Participant has Deposited to the Participants Fund in excess of its
Required Participants Fund Deposit. Rule 1, Section 1, supra note 3.
    \14\ Settlement Guide, supra note 3 at 47-50.
    \15\ Id.
    \16\ Id.
    \17\ See Rule 4, supra note 3. See also Settlement Guide, supra
note 3 at 47-50.
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    The Required Participants Fund Deposit of each Participant is
calculated on a daily basis.\18\ As the calculation of the Required
Participants Fund Deposit of a Participant takes into account the 60-
day Rolling Average, however, the Required Participants Fund Deposit
remains stable and does not undergo material change from day-to-day.
Therefore, the Settlement Guide only requires collection of the full
amount of any Deficiency on a monthly basis unless an increase to its
Required Participants Fund Deposit as calculated intra-month exceeds
the Standard Threshold.\19\ In this regard, a Participant

must satisfy any Deficiency as calculated on the last Business Day of a
month.
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    \18\ Rule 4, Section 1, supra note 3.
    \19\ See Settlement Guide, supra note 3 at 50-51.
---------------------------------------------------------------------------

    Pursuant to the Settlement Guide, if there is a significant
increase to the Participant's Required Participants Fund Deposit as
calculated on an intra-month Business Day, such that the increase meets
the Standard Threshold, the Participant is required to Deposit the
difference between its Actual Participants Fund Deposit and its
Required Participants Fund Deposit.\20\ The Standard Threshold is met
when the difference between the Participant's Required Participants
Fund Deposit and the Reference Amount (a) equals or exceeds $500,000
and (b) represents a percentage increase of 25 percent or more over the
Reference Amount.\21\
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    \20\ See Id.
    \21\ See Id.
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Proposed Rule Changes
    As mentioned above, the proposed rule change would amend the
Procedures set forth in the Settlement Guide relating to the amount a
Participant is required to Deposit to the Participants Fund to satisfy
a Deficiency, due to an increase to its Required Participants Fund
Deposit, as calculated on an intra-month basis.\22\ Specifically, as
mentioned above, the proposed rule change would codify the practices
currently followed by DTC with respect to (i) determining the Reference
Amount for a Participant (as described below) and (ii) the application
of the Watch List Threshold, as described below. The proposed rule
change would also include technical and clarifying changes to the text
of the Settlement Guide (a) for enhanced readability, (b) to make
grammatical corrections, and (c) to add new section headings, as
discussed below.
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    \22\ See Id.
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Proposed Clarification of Reference Amount
    The Settlement Guide does not specify the Reference Amount used for
the purpose of determining the Standard Threshold. In practice, DTC
designates the Reference Amount for a Participant to be the
Participant's Required Participants Fund Deposit relating to the most
recent event that required the Participant to Deposit an additional
amount to the Participants Fund. This would be the most recent
occurrence, as it relates to the Participant, of (a) a month-end
calculation, (b) an intra-month calculation that meets the Standard
Threshold resulting in a collection of a Deficiency, or (c) an
adjustment to the Participant's Required Participants Fund Deposit
pursuant to Rule 9(A),\23\ as described below. Pursuant to the proposed
rule change, DTC would codify this practice, and would update it to
take into account increases that a Participant would be required to
Deposit because of an increase in its Required Participants Fund
Deposit that meets the Watch List Threshold, as described below. In
this regard, the proposed rule change would amend the Settlement Guide
to state that the Reference Amount for the determination of the
Standard Threshold and the Watch List Threshold for a Participant, on a
given intra-month Business Day, would equal the Participant's Required
Participants Fund Deposit as previously calculated on the latter of:
---------------------------------------------------------------------------

    \23\ Rule 9(A), Section 2, supra note 3. See also Settlement
Guide, supra note 1 at 50 (describing adjustments that may be made
pursuant to Rule 9(A).
---------------------------------------------------------------------------

    (a) The last Business Day of the prior month;
    (b) the most recent intra-month Business Day (prior to the then
current Business Day), when the amount resulting from daily calculation
of the Participant's Required Participants Fund Deposit met or exceeded
either the Standard Threshold or the Watch List Threshold and a deficit
collection was effectuated pursuant to the intra-month collection
procedures specified in the Settlement Guide; or
    (c) the most recent intra-month Business Day (prior to the then
current Business Day) when DTC effected an adjustment to the
Participant's Required Participants Fund Deposit pursuant to Rule
9(A).\24\
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    \24\ Rule 9(A), Section 2, supra note 3.
---------------------------------------------------------------------------

Proposed Watch List Threshold
    Pursuant to the Rules and Settlement Guide, DTC maintains the
ability to seek additional assurances \25\ and tools allowing it to
conduct enhanced surveillance \26\ of Participants that present
heighted risk to DTC.
---------------------------------------------------------------------------

    \25\ Infra note 30.
    \26\ Infra note 29.
---------------------------------------------------------------------------

    In this regard, DTC uses the Credit Risk Rating Matrix, the Watch
List and the enhanced surveillance to manage and monitor default risks
of Participants on an ongoing basis.\27\ The level and frequency of
such monitoring for a Participant is determined by the Participant's
risk of default as assessed by DTC.\28\ Participants that are deemed by
DTC to pose a heightened risk to DTC and its Participants are subject
to, among other things, closer and more frequent monitoring and
enhanced reporting requirements.\29\
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    \27\ See Securities Exchange Act Release No. 80734 (May 19,
2017), 82 FR 24177 (May 25, 2017) (SR-DTC-2017-002)
    \28\ See Id.
    \29\ Rule 2, Section 10, supra note 3. Section 10 of Rule 2
states: ``A Participant being subject to enhanced surveillance or
being placed on the Watch List shall result in more thorough
monitoring of the Participant's financial condition and/or
operational capability, which could include, for example, on-site
visits or additional due diligence information requests from the
Corporation. In addition, the Corporation may require a Participant
placed on the Watch List and/or subject to enhanced surveillance to
make more frequent financial disclosures, including, without
limitation, interim and/or pro forma reports. Participants that are
subject to enhanced surveillance are also reported to the
Corporation's management committees and regularly reviewed by a
cross-functional team comprised of senior management of the
Corporation. The Corporation may also take such additional actions
with regard to any Participant (including a Participant placed on
the Watch List and/or subject to enhanced surveillance) as are
permitted by the Rules and Procedures.'' Id.
---------------------------------------------------------------------------

    In addition to the above, pursuant to Rule 9(A), if DTC becomes
concerned with a Participant's operational or financial soundness, DTC
may require adequate assurances of financial or operational capacity
from the Participant, as a risk mitigant,\30\ including requiring the
Participant to Deposit an additional amount to the Participants
Fund.\31\ Any additional requirements are designed to provide
appropriate incentives to affected Participant(s) to address the
underlying condition or activity.
---------------------------------------------------------------------------

    \30\ Rule 9(A), Section 2, supra note 3.
    \31\ Any such additional amount shall be part of the Required
Participants Fund Deposit of the Participant. See Rule 4, Section
1(a), supra note 3.
---------------------------------------------------------------------------

    In determining whether it is appropriate to require a Participant
to Deposit an additional amount to the Participants Fund for a
Participant, DTC takes into account credit, market, operational or
other concerns regarding the Participant. Typically, the following
factors may be considered, including: (i) The Participant's liquidity
arrangements; (ii) the Participant's overall financial condition; (iii)
published news or reports and/or regulatory observations relating to
the Participant; and (iv) the Participant's internal credit rating, if
any.\32\
---------------------------------------------------------------------------

    \32\ See Settlement Guide, supra note 3 at 50.
---------------------------------------------------------------------------

    As a further mitigant of risks presented by Participants that
present heightened risk to DTC, and in light of the fact that a
Participant's internal credit rating is a contributing factor to both
DTC's determination to add a Participant to the Watch List and/or make
an adjustment with respect to the Participant's Required Participants
Required Participants Fund Deposit, the proposed rule change would
amend the Settlement Guide to add the Watch List Threshold.

    As mentioned above, the proposed rule change relating to the Watch
List Threshold would reflect criteria DTC currently uses in practice
for Participants that have been placed on the Watch List, to determine
whether a Participant that has been placed on the Watch List must
Deposit additional amount to the Participants Fund to satisfy a
Deficiency. The Watch List Threshold is lower than the Standard
Threshold and, when met, would require the Participant to Deposit the
full amount of any Deficiency. The proposed rule change would add text
to the Settlement Guide stating that the Watch List Threshold would
apply to a Participant if its Required Participants Fund Deposit
increases and the difference between the Required Participants Fund
Deposit and the Reference Amount equals or is greater than 10 percent
of the Reference Amount.
Technical and Clarifying Changes
    The proposed rule change would also include technical and
clarifying changes to the text of the ``Settlement of Participants Fund
Deposits'' section of the Settlement Guide:
    (a) To revise and re-order existing text for enhanced readability
and flow of content;
    (b) to add subheadings with respect to provisions relating to (i)
settlement of Required Participants Fund Deposits calculated at the end
of a month, (ii) collection of Required Participants Fund Deposits
calculated on an intra-month basis, (iii) return of any amount by which
a Participant's Actual Participants Fund Deposit exceeds its Required
Participants Fund Deposit;
    (c) to revise informal references to terms already defined in the
Rules to use the actual defined terms, as applicable, including
changing references from (i) ``requirement'' to ``Required Participants
Fund Deposit, (ii) referring informally to a Participant's ``deposit''
to ``Actual Participants Fund Deposit'' and (iii) ``business day'' to
``Business Day''; and
    (d) to make grammatical corrections.
Implementation Timeframe
    The proposed rule change would be effective upon approval of the
proposed rule change by the Commission.
2. Statutory Basis
    Section 17A(b)(3)(F) of the Securities Exchange Act of 1934, as
amended (``Act'') \33\ requires, inter alia, that the Rules promote the
prompt and accurate clearance and settlement of securities
transactions. DTC believes that the proposed rule changes are
consistent with this provision because they would (i) add provisions in
the Settlement Guide that provide for, among other things, the criteria
currently used by DTC to determine whether a Participant must increase
the amount of its Actual Participants Fund Deposit on an intra-month
basis, and (ii) include technical and clarifying changes to the text of
the Settlement Guide (a) for enhanced readability, (b) to make
grammatical corrections and (c) to add new section headings, as
discussed above. In this regard, the proposed changes would enhance the
transparency and clarity of the applicable provisions of the Settlement
Guide, which would facilitate stakeholders' ability to understand DTC's
criteria the determination of whether a Participant would be required
to make an additional Deposit to the Participants Fund based on the
intra-month calculation of its Required Participants Fund Deposit. As
mentioned above, the Participants Fund provides DTC with the liquidity
to complete end-of-day settlement notwithstanding the failure to settle
of the Participant or Affiliated Family of Participants with the
largest settlement obligation. Therefore, by providing stakeholders
with enhanced transparency with regard to the criteria and related
Procedures related to whether a Participant must Deposit additional
amounts to satisfy a Deficiency, DTC believes that the proposed rule
change would promote the prompt and accurate clearance and settlement
of securities transactions consistent with Section 17A(b)(3)(F) of the
Act.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    The proposed rule change is also designed to be consistent with
Rule 17Ad-22(e)(23)(ii) of the Act.\34\ Rule 17Ad-22(e)(ii) requires
DTC, inter alia, to establish, implement, maintain and enforce written
policies and procedures reasonably designed to provide sufficient
information to enable participants to identify and evaluate the risks
and material costs they incur by participating in the covered clearing
agency.\35\ As discussed above, the proposed rule change would (i)
provide greater transparency in the Settlement Guide with respect to,
the methodology used by DTC to determine whether a Participant must
Deposit an additional amount to the Participants Fund based on an
intra-month calculation of its Required Participants Fund Deposit and
(ii) make other clarifying changes for readability and grammatical
changes to the text of the Settlement Guide in this regard. By
providing for greater transparency and clarity in this regard, DTC
believes that the proposed rule change is consistent with Rule 17Ad-
22(e)(23)(ii), cited above.
---------------------------------------------------------------------------

    \34\ 17 CFR 240.17Ad-22(e)(23)(ii).
    \35\ DTC is a ``covered clearing agency'' as defined by new Rule
17Ad-22(a)(5) and must comply with subsection (e) of Rule 17Ad-22.
See Securities Exchange Act Release No. 78961 (September 28, 2016),
81 FR 70786 (October 13, 2016) (S7-03-14).
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(B) Clearing Agency's Statement on Burden on Competition

    DTC does not believe that the proposed rule change to add
provisions to the Settlement Guide relating to the Watch List
Threshold, as discussed above, would impact competition.\36\ The
proposed rule change codifies a procedure that is consistent with the
existing core concept relating to DTC's authority to impose an
adjustment on a Required Participants Fund Deposit on a Participant
because of its internal credit rating,\37\ i.e., relating to Credit
Risk Rating Matrix, which determines a Participant's placement on the
Watch List, as described above. Based on the foregoing, DTC believes
that the proposed rule change relating to addition of provisions to the
Settlement Guide relating to the Watch List Threshold would not have
any impact on competition.
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78q-1(b)(3)(I).
    \37\ See Settlement Guide at 50 (stating that a Participant's
internal credit rating is a factor DTC may take into consideration
in determining whether to increase the Participant's Required
Participants Fund Deposit, pursuant to Rule 9(A), cited above).
---------------------------------------------------------------------------

    DTC does not believe that the proposed rule change to codify in the
Settlement Guide the criteria DTC currently uses to determine the
Reference Amount would impact competition.\38\ The proposed rule change
consists of changes to the Settlement Guide that do not alter the
methodology by which Required Participants Fund Deposits are calculated
and collected. Based on the foregoing, DTC believes that the proposed
rule change clarifying the criteria for determining the Reference
Amount would not have any impact on competition.
---------------------------------------------------------------------------

    \38\ Supra note 36.
---------------------------------------------------------------------------

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

    Written comments relating to this proposed rule change have not
been solicited or received. DTC will notify the Commission of any
written comments received by DTC.

III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self- regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.
    The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.

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 [email protected]. Please include
File Number SR-DTC-2017-024 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-DTC-2017-024. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (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 DTC and on DTCC's website
(http://dtcc.com/legal/sec-rule-filings.aspx). 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-DTC-2017-024 and should be submitted on
or before January 30, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\39\
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    \39\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00159 Filed 1-8-18; 8:45 am]
 BILLING CODE 8011-01-P