[Federal Register Volume 76, Number 132 (Monday, July 11, 2011)]
[Proposed Rules]
[Pages 40660-40662]
[FR Doc No: 2011-17454]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2011-0547; FRL-9435-2]

Revisions to the California State Implementation Plan, San
Joaquin Valley Air Pollution Control District (SJVUAPCD)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve revisions to the San Joaquin
Valley Air Pollution Control District (SJVUAPCD) portion of the
California State Implementation Plan (SIP). These revisions concern
volatile organic compound (VOC) and oxides of nitrogen
(NOX), and particulate matter (PM) emissions from open
burning. We are approving a local rule that regulates these emission
sources under the Clean Air Act as amended in 1990 (CAA or the Act). We
are taking comments on this proposal and plan to follow with a final
action.

DATES: Any comments must arrive by August 10, 2011.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2011-0547, by one of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the on-
line instructions.
    2. E-mail<EMAIL_ADDRESS>    3. Mail or deliver: Andrew Steckel (Air-4), U.S. Environmental
Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA
94105-3901.
    Instructions: All comments 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 Confidential Business Information (CBI) or other information
whose disclosure is restricted by statute. Information that you
consider CBI or otherwise protected should be clearly identified as
such and should not be submitted through www.regulations.gov or e-mail.
www.regulations.gov is an ``anonymous access'' system, and EPA will not
know your identity or contact information unless you provide it in the
body of your comment. If you send e-mail directly to EPA, your e-mail
address will be automatically captured and included as part of the
public comment. 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.
    Docket: Generally, documents in the docket for this action are
available electronically at www.regulations.gov and in hard copy at EPA
Region IX, 75 Hawthorne Street, San Francisco, California. While all
documents in the docket are listed at www.regulations.gov, some
information may be publicly available only at the hard copy location
(e.g., copyrighted material, large maps), and some may not be publicly
available in either location (e.g., CBI). To inspect the hard copy
materials, please schedule an appointment during normal business hours
with the contact listed in the FOR FURTHER INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Joanne Wells, EPA Region IX, (415)
947-4118<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us'' and
``our'' refer to EPA.

Table of Contents

I. The State's Submittal
    A. What rule did the State submit?
    B. Are there other versions of this rule?
    C. What is the purpose of the submitted rule and rule revisions?
II. EPA's Evaluation and Action
    A. How is EPA evaluating the rule?
    B. Does the rule meet the evaluation criteria?
    C. EPA Recommendations To Further Improve the Rule
III. Proposed Action
IV. Statutory and Executive Order Reviews

I. The State's Submittal

A. What rule did the State submit?

    Table 1 lists the rule and portion of District Staff Report
addressed by this proposal with the dates that they were adopted by the
local air agency and submitted by the California Air Resources Board
(CARB).

                                            Table 1--Submitted Rules
----------------------------------------------------------------------------------------------------------------
               Local  agency                  Rule No.             Rule title             Adopted     Submitted
----------------------------------------------------------------------------------------------------------------
SJVUAPCD..................................         4103  Open Burning.................     04/15/10     04/05/11
SJVUAPCD..................................  ...........  Table 9-1, Final Staff Report     05/20/10     04/05/11
                                                          and Recommendations on
                                                          Agricultural Burning.
----------------------------------------------------------------------------------------------------------------

    On May 6, 2011, EPA determined that the submittal for SJVUAPCD Rule
4103 met the completeness criteria in 40 CFR Part 51 Appendix V, which
must be met before formal EPA review.

B. Are there other versions of this rule?

    We approved an earlier version of Rule 4103 into the SIP on
November 10, 2009 (74 FR 57907). The SJVUAPCD adopted revisions to the
SIP-approved version on April 15, 2010 and CARB submitted them to us on
April 5, 2011.

C. What is the purpose of the submitted rule and rule revisions?

    VOCs and NOX help produce ground-level ozone and smog,
which harm human health and the environment. PM emissions also harm
human health and the environment by causing, among other things,
premature mortality, aggravation of respiratory and cardiovascular
disease, decreased lung function, visibility impairment, and damage to
vegetation and ecosystems. Section 110(a) of the CAA requires States to
submit regulations that control VOC, NOX, and PM emissions.
SJVUAPCD Rule 4103 limits emissions of air pollutants, including VOC,
NOX and PM, that result from the open burning of
agricultural waste and other materials.
    Rule 4103 was revised largely to implement portions of California
Health and Safety Code (CH&SC) sections 41855.5 and 41855.6. CH&SC
section 41855.5 requires SJVUAPCD to prohibit specific crop categories
from open burning according to a schedule, the final phase of which
began on June 1, 2010. CH&SC section 41855.6 authorizes SJVUAPCD to
postpone the burn prohibition for specific crop categories if all of
the conditions listed in section 41855.6 are met.
    Specific revisions to the previous version of the rule include:
     New or revised definitions are provided in Section 3.0 for
the following terms: Air Pollution Control Officer, Board,
Environmental Protection Agency, Field Crops, Orchard Removals, Other
Materials, Other Weeds and Maintenance, Prunings, Surface Harvested
Prunings, Vineyard Removal Materials, Vineyard Materials and Weed
Abatement.
     Section 5.5.1 was amended to include all agricultural
crops and materials listed in CH&SC Section 41855.5, thereby
prohibiting the open burning of all materials not subject to a
postponement under Section 5.5.2.
     Section 5.5.2 was revised to include criteria that
SJVUAPCD must satisfy to postpone a burn prohibition under CH&SC
Section 41855.6.
     New Section 6.3 requires the SJVUAPCD Air Pollution
Control Officer (APCO) to prepare and present to the Board for review
and approval a ``Staff Report and Recommendations on Agricultural
Burning'' for any Board determination under section 5.5.2. The APCO
must also review and update this Report at least every five years.
     On May 20, 2010, the SJVUAPCD Board approved and
incorporated by reference a ``Staff Report and Recommendations on
Agricultural Burning'' prepared pursuant to section 6.3 of the rule.
The Staff Report recommended complete or partial postponement of the
burn prohibition for a number of crop categories. These recommendations
are summarized in Table 9-1 of the Staff Report.
    EPA's technical support document (TSD) has more information about
these rule revisions.

II. EPA's Evaluation and Action

A. How is EPA evaluating the rule?

    Generally, SIP rules must be enforceable (see section 110(a) of the
Act) and must not relax existing requirements (see sections 110(l) and
193). Section 172(c)(1) of the Act also requires implementation of all
reasonably available control measures (RACM) as expeditiously as
practicable in nonattainment areas. Because the San Joaquin Valley
(SJV) area is designated nonattainment for the fine particulate matter
(PM2.5) National Ambient Air Quality Standards (NAAQS) and designated
and classified as extreme nonattainment for the ozone NAAQS (see 40 CFR
81.305), the RACM requirement in CAA section 172(c)(1) applies to this
area.
    Guidance and policy documents that we use to evaluate
enforceability and RACM requirements consistently include the
following:
    1. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and
Deviations,'' EPA, May 25, 1988 (the Bluebook).
    2. ``Guidance Document for Correcting Common VOC & Other Rule
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).
    3. ``State Implementation Plans; General Preamble for the
Implementation of Title I of the Clean Air Act Amendments of 1990,'' 57
FR 13498 (April 16, 1992); 57 FR 18070 (April 28, 1992).
    4. Preamble, ``Final Rule to Implement the 8-Hour Ozone National
Ambient Air Quality Standard--Phase 2,'' 70 FR 71612 (November 29,
2005).
    5. Preamble, ``Clean Air Fine Particle Implementation Rule for the
1997 PM2.5 NAAQS,'' 72 FR 20586 (April 25, 2007).

B. Does the rule meet the evaluation criteria?

    We believe this rule is consistent with the applicable CAA
requirements and guidance regarding enforceability, RACM, and SIP
revisions. The TSD has more information on our evaluation.

C. EPA Recommendations To Further Improve the Rule

    The TSD describes additional rule revisions that we recommend for
the next time the local agency modifies the rule.

III. Proposed Action.

    Because EPA believes the submitted rule fulfills all relevant
requirements, we are proposing to fully approve it under section
110(k)(3) of the Act. We will accept comments from the public on this
proposal for the next 30 days. Unless we receive convincing new
information during the comment period, we intend to publish a final
approval action that will incorporate this rule into the federally
enforceable SIP.

IV. Statutory and Executive Order Reviews

    Under the Clean Air Act, 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 Clean Air Act. 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'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     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 Clean Air Act; and
     Does not provide EPA with the discretionary authority to
address disproportionate human health or environmental effects with
practical, appropriate, 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.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Ozone, Particulate matter, Reporting and
recordkeeping requirements, Volatile organic compounds.

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

    Dated: June 29, 2011.
Jared Blumenfeld,
Regional Administrator, Region IX.
[FR Doc. 2011-17454 Filed 7-8-11; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 78, Number 8 (Friday, January 11, 2013)]
[Notices]
[Page 2391]
[FR Doc No: 2013-00366]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP13-436-000]

CAlifornians for Renewable Energy, Inc., Michael E. Boyd, Robert
M. Sarvey v. Pacific Gas and Electric Company; Notice of Complaint

    Take notice that on January 3, 2013, pursuant to the Natural Gas
Act, 15 U.S.C. 717-717z (2012) and Rule 206, 18 CFR 385.206 (2012) of
the Rules of Practice and Procedure of the Federal Energy Regulatory
Commission (FERC); CAlifornians for Renewable Energy, Inc., Michael E.
Boyd, and Robert M. Sarvey (Complainants), filed a complaint against
Pacific Gas and Electric Company (PG&E or Respondent) alleging that
PG&E violated the terms and conditions of their blanket certificate \1\
through a failure to meet requirements to maintain its natural gas
transmission system.
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    \1\ See Letter Order Pursuant Sec.  375.307 Pacific Gas and
Electric Company Docket No. PR10-72-000 Issued: July 18, 2011,
Accession Number: 20110718-3048.
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    The Complainants certify that copies of the complaint were served
on the contacts for the Respondents as listed on the Commission's list
of Corporate Officials and on parties of the regulatory agencies the
Complainants reasonably expect to be affected by this complaint.
    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. The Respondent's
answer and all interventions, or protests must be filed on or before
the comment date. The Respondent's answer, motions to intervene, and
protests must be served on the Complainants.
    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 on-line 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 email
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern Time on January 23, 2013.

    Dated: January 4, 2013.
Kimberly D. Bose,
Secretary.
[FR Doc. 2013-00366 Filed 1-10-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 126 (Monday, July 1, 2013)]
[Notices]
[Pages 39426-39429]
[FR Doc No: 2013-15615]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69842; File No. SR-Phlx-2013-68]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Section B of Exchange's Pricing Schedule

June 25, 2013.
    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 June 21, 2013, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III, below,
which Items have been prepared by the Exchange. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the Exchange's Pricing Schedule at
Section B, entitled ``Customer Rebate Program'' to amend the various
defined categories associated with Customer rebates.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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 proposes to amend Section B of the Pricing Schedule,
entitled ``Customer Rebate Program,'' to provide members and member
organizations the ability to achieve greater Customer rebates by
transacting PIXL \3\ Orders.
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    \3\ PIXL is the Exchange's price improvement mechanism known as
Price Improvement XL or (PIXL\SM\). See Rule 1080(n).
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    Currently, the Exchange has in place a four tier structure Customer
Rebate Program at Section B of the Pricing Schedule which pays Customer
rebates on four Categories, A, B, C and D, of transactions. The four
tier structure pays rebates based on percentage thresholds of national
customer multiply-listed options volume by month based on four
Categories (A, B, C and D) of transactions. Specifically, the Exchange
bases a market participant's qualification for a certain Rebate Tier on
the percentage of total national customer volume in multiply-listed
options which are transacted monthly on Phlx as follows:

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                                                   Percentage thresholds of national
                                                  customer volume in multiply-listed
              Customer rebate tiers                 equity and ETF options classes,      Category A       Category B       Category C       Category D
                                                    excluding SPY options (monthly)
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Tier 1..........................................  0.00%-0.75%.......................           $0.00            $0.00            $0.00            $0.00
Tier 2..........................................  Above 0.75%-1.60%.................            0.12             0.17             0.17             0.08
Tier 3..........................................  Above 1.60%-2.60%.................            0.14             0.17             0.17             0.08
Tier 4..........................................  Above 2.60%.......................            0.15             0.17             0.17             0.09
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The Exchange totals Customer volume in Multiply Listed Options
(including Select Symbols and options overlying Standard and Poor's
Depositary Receipts/SPDRs (``SPY'')); \4\ that are electronically-
delivered and executed, except volume associated with electronic
Qualified Contingent Cross (``QCC'') Orders,\5\ as defined in Exchange
Rule 1080(o).\6\ Members and member organizations under Common
Ownership \7\ may aggregate their Customer volume for purposes of
calculating the Customer Rebate Tiers and receiving rebates.
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    \4\ SPY options are based on the SPDR exchange-traded fund
(``ETF''), which is designed to track the performance of the S&P 500
Index.
    \5\ A QCC Order is comprised of an order to buy or sell at least
1000 contracts that is identified as being part of a qualified
contingent trade, as that term is defined in Rule 1080(o)(3),
coupled with a contra-side order to buy or sell an equal number of
contracts. The QCC Order must be executed at a price at or between
the National Best Bid and Offer and be rejected if a Customer order
is resting on the Exchange book at the same price. A QCC Order shall
only be submitted electronically from off the floor to the PHLX XL
II System. See Rule 1080(o). See also Securities Exchange Act
Release No. 64249 (April 7, 2011), 76 FR 20773 (April 13, 2011) (SR-
Phlx-2011-47) (a rule change to establish a QCC Order to facilitate
the execution of stock/option Qualified Contingent Trades (``QCTs'')
that satisfy the requirements of the trade through exemption in
connection with Rule 611(d) of Regulation NMS). A Floor QCC Order
must: (i) Be for at least 1,000 contracts, (ii) meet the six
requirements of Rule 1080(o)(3) which are modeled on the QCT
Exemption, (iii) be executed at a price at or between the National
Best Bid and Offer; and (iv) be rejected if a Customer order is
resting on the Exchange book at the same price. In order to satisfy
the 1,000-contract requirement, a Floor QCC Order must be for 1,000
contracts and could not be, for example, two 500-contract orders or
two 500-contract legs. See Rule 1064(e). See also Securities
Exchange Act Release No. 64688 (June 16, 2011), 76 FR 36606 (June
22, 2011) (SR-Phlx-2011-56).
    \6\ The Exchange calculates volume and pays rebates based on a
member's or member organization's Phlx house account number.
    \7\ Common ownership means 75% common ownership or control.
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    Category A rebates are paid to members executing electronically-
delivered Customer Simple Orders in Penny Pilot Options and Customer
Simple Orders in Non-Penny Pilot Options in Section II symbols.\8\
Rebates are paid on Customer PIXL Orders in Section II symbols that
execute against non-Initiating Order \9\ interest, except in the case
of Customer PIXL Orders that are greater than 999 contracts. All
Customer PIXL Orders that are greater than 999 contracts are paid a
rebate regardless of the contra-party to the transaction.
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    \8\ Section II of the Pricing Schedule includes Multiply Listed
Options Fees, including options overlying equities, ETFs, ETNs and
indexes which are Multiply Listed.
    \9\ A member may electronically submit for execution an order it
represents as agent on behalf of a public customer, broker-dealer,
or any other entity (``PIXL Order'') against principal interest or
against any other order (except as provided in Rule 1080(n)(i)(E))
it represents as agent (``Initiating Order'') provided it submits
the PIXL order for electronic execution into the PIXL Auction
(``Auction'') pursuant to Rule 1080. See Exchange Rule 1080(n). Non-
Initiating Order interest could be a PIXL Auction Responder or a
resting order or quote that was on the Phlx book prior to the
auction.
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    Category B rebates are paid to members executing electronically-
delivered Customer Complex Orders in Penny Pilot Options and Non-Penny
Pilot Options in Section II symbols.
    Category C rebates are paid to members executing electronically-
delivered Customer Complex Orders \10\ in Select Symbols \11\ in
Section I.
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    \10\ A Complex Order is any order involving the simultaneous
purchase and/or sale of two or more different options series in the
same underlying security, priced at a net debit or credit based on
the relative prices of the individual components, for the same
account, for the purpose of executing a particular investment
strategy. Furthermore, a Complex Order can also be a stock-option
order, which is an order to buy or sell a stated number of units of
an underlying stock or exchange-traded fund (``ETF'') coupled with
the purchase or sale of options contract(s). See Exchange Rule 1080,
Commentary .08(a)(i).
    \11\ The Select Symbols are listed in Section I of the Pricing
Schedule.
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    Category D rebates are paid to members executing electronically-
delivered Customer Simple Orders in Select Symbols in Section I.
Rebates are paid on PIXL Orders in Section I symbols that execute
against non-Initiating Order interest.
    The Exchange is proposing to amend Categories B and C to offer
rebates on qualifying \12\ Customer PIXL Complex Orders in Section II
symbols for Category B and Section I symbols for Category C that
execute against non-Initiating Order interest, except in the case of
Customer PIXL Complex Orders that are greater than 999 contracts. All
Customer PIXL Complex Orders that are greater than 999 contracts would
be paid a rebate regardless of the contra-party to the transaction.
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    \12\ The Exchange pays rebates on certain Customer volumes as
specified in Section B of the Pricing Schedule.
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    The Exchange filed a proposed rule change to amend its Rules to
permit Complex Orders in PIXL.\13\ Specifically, the Exchange filed a
proposal to amend Rule 1080 to allow Complex Orders in the Exchange's
price-improving electronic auction, PIXL.\14\ The Exchange proposes to
permit members to receive a Customer rebate, pursuant to Section B of
the Exchange's Pricing Schedule, by transacting qualifying Customer
PIXL Complex Orders in Multiply Listed Section I and II symbols
provided the transactions are against non-Initiating Order interest and
not greater than 999 contracts. If the Customer PIXL Complex Order is
greater than 999 contracts, that transaction will be paid a rebate
regardless of the contra-party to the transaction. The Exchange
proposes for this rule change to become immediately effective, however
a member would not be able to transact PIXL Complex Orders, and thereby
receive Customer rebates, until SR-Phlx-2013-46 is approved by the
Commission.\15\
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    \13\ Securities Exchange Act Release No. 69550 (May 9, 2013), 78
FR 28654 (May 15, 2013) (SR-Phlx-2013-46) (notice of filing of
proposed rule change to accommodate Complex Orders in PIXL).
    \14\ The PIXL mechanism is a process whereby members and member
organizations electronically submit orders they represent as agent
against principal interest or other interest that they represent as
agent. The submitted orders are stopped at a price and are
subsequently entered into an auction seeking price improvement.
Currently, the PIXL mechanism accepts only simple orders. Securities
Exchange Act Release No. 69550 (May 9, 2013), 78 FR 28654 (May 15,
2013) (SR-Phlx-2013-46).
    \15\ The functionality to transact PIXL Complex Orders will not
be available unless and until such time as the Commission approves
SR-Phlx-2013-46. The purpose of this filing is to offer members the
opportunity to achieve certain rebates related to PIXL Complex
Orders when the functionality to transact such orders is approved by
the Commission.
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    The Exchange proposes to amend Category D to offer members a
similar

rebate opportunity. The Exchange proposes to pay rebates on qualifying
Customer PIXL Orders in Select Symbols in Section I that execute
against non-Initiating Order interest, except in the case of Customer
PIXL Order that are greater than 999 contracts. All Customer PIXL
Orders that are greater than 999 contracts would be paid a rebate
regardless of the contra-party to the transaction.
    The Exchange believes that offering members the opportunity to
obtain rebates from PIXL transactions, whether in Simple or Complex
Orders, will incentivize members to transact a greater number of PIXL
Orders.
    The Exchange also proposes to make technical amendments to the text
of Category A to clarify rule text and conform the text to the new
language which the Exchange proposes to add pursuant to this rule
change.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act \16\ in general,
and furthers the objectives of Section 6(b)(4) of the Act \17\ in
particular, in that it provides for an equitable allocation of
reasonable fees and other charges among Exchange members and member
organizations and other persons using its facilities.
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    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(4).
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    The Exchange's proposal to amend Categories B and C of the Customer
Rebate Program to pay rebates on qualifying Customer PIXL Complex
Orders in Section I (Category C) and II (Category B) symbols, provided
those transactions are contra to non-Initiating Order interest,\18\ and
also pay Customer PIXL Complex Order rebates on all orders greater than
999 contracts regardless of the contra-party is reasonable because the
Exchange desires to incentivize members to transact Complex Orders in
PIXL. Today, the Exchange incentivizes members to transact Simple
Orders in PIXL by offering similar rebates under Category A \19\ of the
Customer Rebate Program.
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    \18\ For example, a PIXL Responder or a resting order or quote
that was on the Phlx book prior to the auction.
    \19\ Category A rebates are paid to members and member
organizations executing electronically-delivered Customer Simple
Orders in Penny Pilot Options and Customer Simple Orders in Non-
Penny Pilot Options in Section II. Rebates are paid on Customer PIXL
Orders in Section II symbols that execute against non-Initiating
Order interest, except in the case of Customer PIXL Orders that are
greater than 999 contracts. All Customer PIXL Orders that are
greater than 999 contracts are paid a rebate regardless of the
contra-party to the transaction.
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    The Exchange's proposal to amend Category D of the Customer Rebate
Program to pay rebates on qualifying Customer PIXL Orders in Section I
Select Symbols provided those transactions are contra to non-Initiating
Order interest and also pay Customer PIXL Order rebates on all orders
greater than 999 contracts regardless of the contra-party is reasonable
because the Exchange desires to incentivize members to transact a
greater number of Simple Orders in PIXL. Today, the Exchange offers a
rebate for Simple Orders in PIXL under Category A of the Customer
Rebate Program.
    The Exchange believes that the proposals to amend Categories B, C
and D of the Customer Rebate Program to pay rebates on Customer Simple
and Complex Orders in PIXL, respectively, in Section I and II symbols,
provided those transactions are contra to non-Initiating Order
interest,\20\ and also pay Customer PIXL Complex Order rebates on all
orders greater than 999 contracts regardless of the contra-party are
equitable and not unfairly discriminatory because the Exchange will pay
Customer rebates to any market participant that transacts a qualifying
Customer PIXL Order in a Simple or Complex Order that executes against
non-Initiating Order interest and will also pay Customer rebates to any
market participant that transacts a qualifying Customer Simple or
Complex Order in PIXL which is greater than 999 contracts regardless of
the contra-party in Section I and II symbols. The Exchange will apply
the Category B, C and D rebates uniformly with respect to market
participants transacting qualifying PIXL Orders.
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    \20\ For example, a PIXL Auction Responder or a resting order or
quote that was on the Phlx book prior to the auction.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
    The Exchange believes that its proposal to amend Category B, C and
D of the Customer Rebate Program does not impose an undue burden on
competition because the Exchange is offering to pay Customer rebates on
qualifying PIXL Simple and Complex Orders in Section I and II symbols,
respectively, provided those transactions are contra to non-Initiating
Order interest, to all participants. The Exchange is also offering to
pay Customer rebates on PIXL Simple and Complex Orders in Section I and
II symbols, respectively, on all qualifying orders greater than 999
contracts regardless of the contra party for all market participants.
These rebates should attract Customer PIXL Simple and Complex Order
flow to the Exchange and benefit all market participants through the
increased liquidity such order flow will bring to the PIXL auction in
terms of order interaction. Today, the Exchange pays rebates on PIXL
Simple Orders only in Category A of the Customer Rebate Program. With
this proposal, the Exchange is providing an opportunity to obtain
Customer rebates by transacting both Simple and Complex Orders in PIXL,
respectively, in all categories of the Customer Rebate Program.
    The Exchange operates in a highly competitive market, comprised of
eleven exchanges, in which market participants can easily and readily
direct order flow to competing venues if they deem fee levels at a
particular venue to be excessive or rebates to be inadequate.
Accordingly, the fees that are assessed and the rebates paid by the
Exchange described in the above proposal are influenced by these robust
market forces and therefore must remain competitive with fees charged
and rebates paid by other venues and therefore must continue to be
reasonable and equitably allocated to those members that opt to direct
orders to the Exchange rather than competing venues.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\21\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
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    \21\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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_ADDRESS>Please include
File Number SR-Phlx-2013-68 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2013-68. 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 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; 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 Number SR-Phlx-2013-68 and
should be submitted on or before July 22, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-15615 Filed 6-28-13; 8:45 am]
BILLING CODE 8011-01-P