[Federal Register Volume 80, Number 211 (Monday, November 2, 2015)]
[Rules and Regulations]
[Pages 67302-67312]
[FR Doc No: 2015-27806]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 157, 260, and 284

[Docket Nos. RM96-1-038 and RM14-2-003; Order No. 587-W]

Standards for Business Practices of Interstate Natural Gas
Pipelines; Coordination of the Scheduling Processes of Interstate
Natural Gas Pipelines and Public Utilities

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
amending its regulations to incorporate by reference the latest version
(Version 3.0) of seven business practice standards adopted by the
Wholesale Gas Quadrant of the North American Energy Standards Board
(NAESB) applicable to interstate natural gas pipelines. These updated
business practice standards contain and supplement the revisions to the
NAESB scheduling standards accepted by the Commission in Order No. 809
as part of the Commission's efforts to harmonize gas-electric
scheduling coordination, and are required to be implemented on April 1,
2016, the same date as the regulations adopted in Order No. 809. In
addition, the updated standards revise

the codes used to identify receipt and delivery locations in the Index
of Customers. Further, for consistency with the revisions to the Index
of Customers, the Commission is also amending its regulations to make
conforming changes to the Commission's regulations on interstate
natural gas pipeline filings and postings.

DATES: This rule will become effective December 2, 2015. Implementation
of these standards is required on April 1, 2016. The incorporation by
reference of certain publications listed in this rule is approved by
the Director of the Federal Register as of December 2, 2015.

FOR FURTHER INFORMATION CONTACT:
    Stanley Wolf (technical issues), Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street NE.,
Washington, DC 20426, Telephone:<PHONE_NUMBER>, Email:
<EMAIL_ADDRESS>    Oscar F. Santillana (technical issues), Office of Energy Market
Regulation, Federal Energy Regulatory Commission, 888 First Street NE.,
Washington, DC 20426, Telephone:<PHONE_NUMBER>,Email:
<EMAIL_ADDRESS>    Gary D. Cohen (legal issues), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, Telephone:<PHONE_NUMBER>,Email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Order No. 587-W

Final Rule

Table of Contents

                                                               Paragraph
                                                                Numbers

I. Background...............................................           4
II. Discussion..............................................          12
    A. Incorporation by Reference of the NAESB Standards....          12
        1. The NAESB WGQ Version 3.0 Business Practice                12
         Standards..........................................
        2. NAESB's Process..................................          14
        3. NOPR Proposal....................................          15
        4. Comments.........................................          16
        5. Commission Determination.........................          17
        6. Required Compliance Filings......................          18
    B. Use of Proprietary Codes To Replace Common Codes.....          19
        1. NOPR Proposal....................................          19
        2. Comments.........................................          21
        3. Commission Determination.........................          22
    C. Index of Customers...................................          24
        1. Filing Format....................................          24
            a. NOPR Proposal................................          24
            b. Comment......................................          25
            c. Commission Determination.....................          26
        2. Index of Customers Instruction Manual............          27
            a. NOPR Proposal................................          27
            b. Comments.....................................          28
            c. Commission Determination.....................          31
    D. Cross-References/Conforming Changes..................          36
        1. NOPR Proposal....................................          36
        2. Comments.........................................          37
        3. Commission Determination.........................          38
III. Implementation Schedule................................          40
IV. Notice of Use of Voluntary Consensus Standards..........          43
V. Incorporation By Reference...............................          45
VI. Information Collection Statement........................          47
VII. Environmental Analysis.................................          53
VIII. Regulatory Flexibility Act............................          54
IX. Document Availability...................................          56
X. Effective Date and Congressional Notification............          59

Order No. 587-W

Final Rule

(Issued October 16, 2015)

    1. In this final rule, the Federal Energy Regulatory Commission
(Commission) amends its regulations at 18 CFR 284.12 to incorporate by
reference the latest version (Version 3.0) of seven business practice
standards applicable to interstate natural gas pipelines adopted by the
Wholesale Gas Quadrant (WGQ) of the North American Energy Standards
Board (NAESB). Interstate natural gas pipelines are required to
implement these standards April 1, 2016.
    2. The NAESB WGQ Version 3.0 package of standards includes
standards governing coordination of the scheduling processes of
interstate natural gas pipelines and public utilities that the
Commission incorporated by reference in Docket No. RM14-2-000.\1\ These
updated business practice standards will replace the earlier version of
these business practice standards that previously were incorporated by
reference. The standards also revise the codes used to identify receipt
and delivery locations in the Index of Customers. In addition, for
consistency with the revisions to the Index of Customers, the
Commission is also amending its regulations at 18 CFR 157.14, 157.18,
260.8, and 284.13 to have receipt and delivery point information in
various interstate natural gas pipeline filings and postings use the
same location point names as provided for in the NAESB WGQ Version 3.0
Standards. Finally, we also are making conforming changes to 18 CFR
284.126.
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    \1\ Coordination of the Scheduling Processes of Interstate
Natural Gas Pipelines and Public Utilities, Order No. 809, Final
Rule, 80 FR 23197 (Apr. 24, 2015), FERC Stats. & Regs. ] 31,368
(Order No. 809).

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    3. In addition, the Commission terminates, as moot, the proceeding
in Docket No. RM14-2-003, as the standard corrections NAESB filed in
Docket No. RM14-2-003 are included as part of the Version 3.0 standards
that the Commission is incorporating by reference here, with the same
implementation date of April 1, 2016.

I. Background

    4. Since 1996, the Commission has adopted regulations to
standardize the business practices and communication methodologies of
interstate natural gas pipelines to create a more integrated and
efficient pipeline grid. These regulations have been promulgated in the
Order No. 587 series of orders,\2\ wherein the Commission has
incorporated by reference standards for interstate natural gas pipeline
business practices and electronic communications that were developed
and adopted by NAESB's WGQ. Upon incorporation by reference, this
version of these standards will become part of the Commission's
regulations and compliance by interstate natural gas pipelines will
become mandatory and will replace the earlier version of these
standards that the Commission previously incorporated by reference in
2012.\3\
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    \2\ This series of orders began with the Commission's issuance
of Standards for Business Practices of Interstate Natural Gas
Pipelines, Order No. 587, FERC Stats. & Regs. ] 31,038 (1996).
    \3\ Standards for Business Practices of Interstate Natural Gas
Pipelines, Final Rule, Order No. 587-V, FERC Stats. & Regs. ] 31,332
(2012) (Order No. 587-V).
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    5. On July 23, 2013, as corrected on July 25, 2013, NAESB filed a
report informing the Commission that it had adopted and ratified
Version 2.1 of its business practice standards applicable to natural
gas pipelines. NAESB reported that the WGQ reviewed, at the request of
the industry, the necessity of maintaining the current location common
codes system to determine if the system provides a significant benefit
to the industry and should be continued.\4\ NAESB (in its previous
corporate incarnation as the Gas Industry Standards Board) adopted a
system of registering common codes to identify interconnection points
between pipelines using a single code for the shared point. The
industry chose an independent third party to assign and maintain the
common code database.
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    \4\ NAESB Version 2.1 Report dated July 23, 2013 (NAESB Version
2.1 Report). As explained in the NAESB Version 2.1 Report, this
request was received by NAESB in November 2010 and was included by
the NAESB Board of Directors in the 2011 WGQ Annual Plan as part of
Item No. 7 and as part of the 2012 WGQ Annual Plan Item No. 8. See
NAESB Version 2.1 Report at 3. The proposed modifications made in
response to this request were developed by the WGQ's Business
Practices Subcommittee and jointly by the Information Requirements/
Technical Subcommittees.
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    6. NAESB reported that, after extensive discussions, the WGQ
reached the conclusion that the NAESB WGQ Standards should no longer
support the location common codes system, as the NAESB membership
concluded that the system provided little commercial benefit to the
industry at large. Consistent with this determination, the Version 2.1
Standards added seven new standards, modified six standards, and
deleted three standards to match up with a transition from common codes
to the proprietary codes used by interstate pipelines to identify
points.\5\ These will be the codes assigned by the transportation
service providers for the identification of locations.\6\ The standards
require pipelines to post sufficient information on their Web sites to
permit shippers and the Commission to identify the interconnection
points between pipelines that were previously identified through the
common codes.
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    \5\ NAESB Version 2.1 Report at 2.
    \6\ Id. at 4.
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    7. Additionally, as requested by the Commission in Order No. 587-
V,\7\ NAESB modified the standards to include reporting requirements
for ``Design Capacity'' for each location by transportation service
providers.\8\ Other changes to the existing standards were made at the
request of industry. These include changes to the NAESB WGQ Additional
Standards, Nominations Related Standards, Flowing Gas Related
Standards, Invoicing Related Standards, Quadrant Electronic Delivery
Mechanism Standards, Capacity Release Related Standards, and Data Set
Standards.\9\ NAESB further reported on the changes it made to the
NAESB WGQ Interpretations and Contracts and Manuals that the Commission
has declined to incorporate by reference in past Final Rules.\10\ NAESB
also reported on all the minor corrections it made to the standards
since Version 2.0 of the Standards.\11\ Finally, NAESB reported on
items that it considered changing but on which it took no action.\12\
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    \7\ See supra n.3.
    \8\ NAESB Version 2.1 Report at 2-3.
    \9\ Id. at 3.
    \10\ See, e.g., Order No. 587-V, FERC Stats. & Regs. ] 31,332 at
n.11.
    \11\ NAESB Version 2.1 Report at 18.
    \12\ Id. at 17-18.
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    8. On November 14, 2014, NAESB filed a report informing the
Commission that it had adopted and ratified Version 3.0 of its business
practice standards applicable to natural gas pipelines. NAESB reported
that all of the modifications made in the Version 2.1 Standards are
included in the Version 3.0 Standards and thus no action is needed on
the Version 2.1 Standards.\13\ The Version 3.0 Standards introduced
modifications to the standards to support efforts to harmonize gas-
electric scheduling coordination that NAESB had separately filed and
that the Commission incorporated by reference in Order No. 809.\14\ In
addition, the Version 3.0 Standards contain revisions to the capacity
release standards regarding posting requirements for offers to purchase
released capacity that were the subject of the Commission's order to
show cause in Docket No. RP14-442-000.\15\ Other revisions in the
Version 3.0 Standards are: (1) Revisions to the standards to define
``Operating Capacity'' and ``Design Capacity'' in response to the
Commission request in Order No. 587-V; \16\ (2) elimination of the WGQ
Interpretations, which the Commission has long declined to incorporate
by reference; (3) modifications to standards to reflect the elimination
of the WGQ's interpretations of the standards; (4) modifications for
maintenance purposes, which includes changes to eliminate the
appearance of the electronic data interchange in the imbalance trading
process; (5) modifications to reflect new data elements; and (6) edits
for clarity and to increase user-friendliness. The Version 3.0
standards have also been revised to include 29 minor corrections.\17\
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    \13\ NAESB Version 3.0 Report dated November 14, 2014 (NAESB
Version 3.0 Report) at 2.
    \14\ See supra n.1.
    \15\ Posting of Offers to Purchase Capacity, 146 FERC ] 61,203,
at P 6 (2014) (Show Cause Order); B-R Pipeline Co., 149 FERC ]
61,031 (2014) (order accepting compliance filings).
    \16\ Order No. 587-V, FERC Stats. & Regs. ] 31,332 at P 8.
    \17\ The NAESB Version 3.0 Report also provides information on
other NAESB activities and tools unrelated to standards development.
A complete listing of all the revisions made in NAESB's WGQ Version
3.0 Business Practice Standards to NAESB's prior business practice
standards can be found in the Appendix to the Version 3.0 NOPR, 80
FR 43987, FERC Stats. & Regs. ] 32,708 at 34,767.
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    9. On July 7, 2015, NAESB filed a report informing the Commission
that it made errata corrections to the WGQ Version 3.0 Business
Practice Standards.\18\ These corrections incorporated a 9:00 a.m.
Central Clock Time (CCT) start to the gas operating day, consistent
with the Commission's findings in Order No. 809 \19\ and also corrected
other minor errors.
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    \18\ NAESB adopted two minor corrections, MC15009 and MC15012,
approved on April 30, 2015 and May 29, 2015, respectively.
    \19\ Order No. 809, FERC Stats. & Regs. ] 31,368 at P 171.

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    10. On July 16, 2015, the Commission issued a Notice of Proposed
Rulemaking (Version 3.0 NOPR) proposing to amend its regulations to
incorporate by reference, with certain enumerated exceptions, the NAESB
Version 3.0 business practice standards (referenced above) applicable
to natural gas pipelines.\20\ In addition, the Version 3.0 NOPR
proposed certain conforming changes to the Commission's regulations at
18 CFR 157.14 and 157.18 (dealing with exhibits) and 260.8 (dealing
with system flow diagrams).
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    \20\ Standards for Business Practices of Interstate Natural Gas
Pipelines, Notice of Proposed Rulemaking, 80 FR 43979 (July 24,
2015), FERC Stats. & Regs. ] 32,708 (July 16, 2015) (Version 3.0
NOPR).
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    11. In response to the Version 3.0 NOPR, comments were filed by
three commenters. All three commenters express support for the
Commission's proposal to incorporate by reference NAESB's Version 3.0
business practice standards. Tennessee Valley Authority (TVA) comments
that it fully supports the full package of revisions reflected in the
NAESB Version 3.0 Standards that are subject to the NOPR. Interstate
Natural Gas Association of America (INGAA) comments that it ``supports
the Commission's proposal to amend its regulations to incorporate by
reference Version 3.0 of the business practice standards adopted by
[NAESB's WGQ] applicable to natural gas pipelines,'' subject to a few
suggested modifications.\21\ It supports the Version 3.0 NOPR's
proposal to introduce the use of proprietary location codes and to
discontinue the use of industry common codes, but it offers suggested
minor modifications to the regulatory text accomplishing this
transition. Southern Star Central Gas Pipeline (Southern Star),
likewise, comments that it ``supports the incorporation by reference of
the NAESB WGQ Version 3.0 business practice standards in 18 CFR Sec.
284.12 as proposed.'' \22\ ``[H]owever, Southern Star asks the
Commission to clarify its proposed corresponding changes to 18 CFR
157.14, 157.18, 260.8, and 284.13 to avoid confusion and ensure
consistent compliance with the regulations.'' \23\ In the discussion
below, we will address the comments in greater detail. In addition, on
September 25, 2015, NAESB filed a report with the Commission in Docket
No. RM96-1-038 announcing that it had made additional minor
corrections.\24\ In this Final Rule, the version of the NAESB WGQ
business practice standards that we are incorporating by reference into
our regulations will include these additional minor corrections.
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    \21\ INGAA at 1.
    \22\ Southern Star at 2.
    \23\ Id.
    \24\ MC15003, MC15004, and MC15005, which were adopted by the
WGQ Executive Committee on April 9, 2015.
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II. Discussion

A. Incorporation by Reference of the NAESB Standards

1. The NAESB WGQ Version 3.0 Business Practice Standards
    12. The NAESB WGQ Version 3.0 Business Practice Standards made a
number of changes to the earlier version of those standards that the
Commission previously incorporated by reference in 2012 in Order No.
587-V.\25\ Notable among these changes was a change, made at the
request of the industry, to introduce the use of proprietary codes to
identify the location of points of receipt and delivery. Consistent
with this determination, the Version 2.1 Standards added seven new
standards, modified six standards, and deleted three standards to match
up with a transition from common codes to proprietary codes. Under the
new standards, each transportation service provider assigns the
proprietary codes it will use to identify the locations of its points
of receipt and delivery. The standards require pipelines to post
sufficient information on their Web sites to permit shippers and the
Commission to identify the interconnection points between pipelines
that were previously identified through the common codes.
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    \25\ Standards for Business Practices of Interstate Natural Gas
Pipelines, Order No. 587-V, FERC Stats. & Regs. ] 31,332 (2012).
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    13. Additionally, as requested by the Commission in Order No. 587-
V,\26\ NAESB modified the standards to include reporting requirements
for ``Design Capacity'' for each location by transportation service
providers. Other changes to the existing standards were made at the
request of industry. These include changes to the NAESB WGQ Additional
Standards, Nominations Related Standards, Flowing Gas Related
Standards, Invoicing Related Standards, Quadrant Electronic Delivery
Mechanism Standards, Capacity Release Related Standards, and Data Set
Standards. NAESB further reports on the changes it made to the NAESB
WGQ Interpretations and Contracts and Manuals that the Commission has
declined to incorporate by reference in past final rules.\27\ NAESB's
Version 3.0 report also identified the minor corrections it made to the
standards since Version 2.0 of the Standards.
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    \26\ Id. P 30.
    \27\ See, e.g., id. n.11.
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2. NAESB's Process
    14. NAESB used its consensus procedures to develop and approve the
Version 3.0 Standards. As the Commission found in Order No. 587, the
adoption of consensus standards is appropriate because the consensus
process helps ensure the reasonableness of the standards by requiring
that the standards draw support from a broad spectrum of industry
participants representing all segments of the industry. Moreover, since
the industry itself has to conduct business under these standards, the
Commission's regulations should reflect those standards that have the
widest possible support. In section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (NTT&AA), Congress affirmatively
requires federal agencies to use technical standards developed by
voluntary consensus standards organizations, like NAESB, as means to
carry out policy objectives or activities determined by the agencies
unless an agency determines that the use of such standards would be
inconsistent with applicable law or otherwise impractical.
3. NOPR Proposal
    15. In the Version 3.0 NOPR, the Commission proposed to incorporate
by reference, in its regulations, Version 3.0 of the NAESB WGQ's
consensus business practice standards, with the exception of NAESB's
standards specifying the terms of optional model contracts and its
eTariff-related standards.\28\
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    \28\ Version 3.0 NOPR, 80 FR 43982, FERC Stats. & Regs. ] 32,708
at P 20.
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4. Comments
    16. As explained above, all of the commenters supported the
Commission's proposal to incorporate by reference the NAESB WGQ Version
3.0 business practice standards as proposed in the Version 3.0
NOPR.\29\
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    \29\ See discussion at P 11, supra.
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5. Commission Determination
    17. After a review of the comments filed in response to the Version
3.0 NOPR, the Commission is amending Part 284 of its regulations to
incorporate by reference seven of the NAESB WGQ's Version 3.0 business
practice standards. Further, as explained in the Version 3.0 NOPR, we
are not incorporating by reference the NAESB WGQ's optional model
contracts and eTariff-related

standards.\30\ In the discussion below, we also will discuss the
various comments suggesting modifications to the regulatory text
proposed in the Version 3.0 NOPR in the conforming changes we proposed
to other provisions of our regulations.
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    \30\ We are also, as discussed in Section II.D below, making a
number of conforming changes in other provisions of our regulations,
for consistency with our action here.
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6. Required Compliance Filings
    18. To implement the standards we are incorporating by reference in
this Final Rule, we will require each interstate natural gas pipeline
to file a separate tariff record reflecting the changed standards by
February 1, 2016, to take effect on April 1, 2016, and the natural gas
pipelines will be required to comply with these standards on and after
April 1, 2016.\31\
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    \31\ To aid in compliance, promptly after issuance of this Final
Rule, the Commission will post a sample tariff record on the
Commission's Web site that may be accessed at http://www.ferc.gov/docs-filing/elibrary.asp. All pipelines are to file their tariff
records in conformance with this sample tariff record.
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B. Use of Proprietary Codes To Replace Common Codes

1. NOPR Proposal
    19. As explained in the Version 3.0 NOPR, at industry's request,
NAESB reviewed the location common codes system and concluded that the
NAESB WGQ Business Practice Standards should no longer support the
location common codes system, as the NAESB membership concluded that
the system provided little commercial benefit to the industry at
large.\32\ The industry determined that having a third party maintain a
common code database is not worth the expense and effort and revised
the standards to introduce the use of proprietary codes to identify the
location of points of receipt and delivery. The revised standards
include requirements to replace much of the information previously
contained in the third party database. These standards require
interstate pipelines to post on their internet Web sites information on
each of the proprietary points that can be used among other things to
determine which points are interconnecting points, one of the primary
reasons for adoption of the common code database.
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    \32\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 4.
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    20. In the Version 3.0 NOPR, the Commission proposed to incorporate
by reference the standards that revised the prior standards to
introduce the use of proprietary codes to identify the location of
points of receipt and delivery and that included requirements for the
pipelines to post on their Web sites information on each of the
proprietary points that can be used to determine which points are
interconnecting points between pipelines.\33\ We also proposed that
these same codes be used by the Commission in its Index of Customers to
identify the points on shippers' contracts and we proposed to revise
Sec.  284.13(c) of the regulations to assure that these provisions
operate in harmony.\34\ In the NOPR, we proposed to revise the
Commission's regulations at Sec.  284.13(c)(2)(vi) to reflect the use
of the term ``location code'' rather than ``industry common code'' to
identify the location of receipt and delivery points, and we also
proposed to require pipelines to post information on their internet Web
site regarding such location points, including the coordinates of each
point, and an identification of the upstream or downstream entity, if
any, at that point, and date the point becomes active or inactive.\35\
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    \33\ Id. PP 15-16.
    \34\ Id.
    \35\ Id. at proposed regulatory text for Sec.  284.13(c)(2)(vi).
(80 FR 43987).
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2. Comments
    21. Southern Star & INGAA both support the Commission's proposal to
use the term ``location code,'' rather than ``industry common code'' to
identify the location of receipt and delivery points.\36\ Southern Star
and INGAA, however, point out that the term ``common code'' recurs in a
number of places in the Commission's regulations other than in the
Index of Customers, and contend that, as a result, the Commission
should establish a separate regulation at 18 CFR 284.13(f) for the
posting requirement to eliminate the need for repetition.\37\
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    \36\ INGAA at 2. Southern Star at 3.
    \37\ Southern Star at 2-3.
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3. Commission Determination
    22. We will incorporate by reference NAESB's standards requiring
interstate pipelines to refer to location points using their own
proprietary code, together with a posting of information regarding
these codes on the pipelines' Web site, rather than requiring the
pipelines to maintain a common code database implemented by a third
party. Given the ability of the Commission and customers to continue to
identify interconnection points referenced in the Index of Customers
through the Web site postings, the Commission also will revise its
regulations governing the filing of the Index of Customers and other
regulations requiring the specification of location point codes to
align with the NAESB standards.
    23. We also will adopt Southern Star and INGAA's recommendations to
modify the regulations to create a separate requirement at 18 CFR
284.13(f) for the posting of information regarding the location points
to make cross-reference easier. Consistent with the proposal in the
Version 3.0 NOPR, we are requiring interstate pipelines to file their
Index of Customers using the new location names and codes for all
active points. In addition, as proposed in the Version 3.0 NOPR, we are
requiring pipelines to maintain and post on their Web sites a complete
listing of all inactive points. Finally, for the convenience of those
reviewing past Index of Customers filings, or those wishing to compare
past Index of Customers filings to newer Index of Customers filings, we
will post the old common code file for past indices on the Commission's
Web site prior to April 1, 2016.

C. Index of Customers

1. Filing Format
a. NOPR Proposal
    24. In the Version 3.0 NOPR, we explained that pipelines currently
file the Index of Customers using a tab-delimited file format
consistent with Form No. 549B--Index of Customers Instruction
Manual.\38\ While we did not propose any changes to that formatting in
the Version 3.0 NOPR, we further explained that,
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    \38\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 17.

    [b]ecause tab-delimited file formats can be difficult and can
result in errors that impose burdens both on Commission and pipeline
staff to correct, we also are adding the Index of Customers form to
the list of forms that are being updated as part of the Commission's
forms refresh project in Docket No. AD15-11-000 (Forms Project).
Adding the Index of Customers to the Forms Project will move the
Commission towards the use of a standard approach for all Commission
forms that will result in more efficient filing and processing of
forms.\[\\39\\]\
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    \39\ Id.

b. Comment
    25. TVA comments that, while it was neutral in the past, it has
come to appreciate that a user-friendly format for the Index of
Customers is extremely beneficial to TVA in long-range planning. TVA
asserts that, with growing staff to support the growth of gas-fired
generation at TVA and counterparties, a user-friendly format for
locations codes is a beneficial tool to

avoid potential miscommunication of receipt and delivery points from
occurring.\40\
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    \40\ TVA at 3.
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c. Commission Determination
    26. The transition from the current tab delimited file format for
the Index of Customers information reported on Form No. 549B to a more
up-to-date format will improve the efficient filing and processing of
this information. As we explained in the Version 3.0 NOPR, the
Commission issued an order (Forms Project Order) initiating a
proceeding in Docket No. AD15-11-000 to consider the transition to a
new filing format for a number of other Commission forms and has
enlisted the assistance of NAESB in this endeavor.\41\ As we explained
in Forms Project Order, the current software which the Commission
requires industry to use for the electronic filing of many of the forms
(Visual Fox Pro) is no longer supported by its developer.\42\ The
Commission enlisted NAESB in an effort to transition to an electronic
filing format based on the use of Extensible Mark-Up Language (XML),
which NAESB helped to develop for electronic tariff filing.\43\ We
recognize that NAESB's highest priority is to develop the XML standards
for the forms to replace the unsupported and outdated Visual Fox Pro
software. While the Index of Customers can still be filed in the
current tab delimited format, we agree with TVA that continued use of
this format is inefficient for both the industry and the Commission.
Accordingly, we request that NAESB consider revisions to the Index of
Customers as part of their ongoing deliberations.
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    \41\ Electronic Filing Protocols for Commission Forms, 151 FERC
] 61,025 (2015).
    \42\ Id. P 1.
    \43\ Electronic Tariff Filings, Order No. 714, FERC Stats. &
Regs. ] 31,276 (2008).
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2. Index of Customers Instruction Manual

a. NOPR Proposal

    27. In the Version 3.0 NOPR, the Commission proposed to post on the
Commission's Web site a revised instruction manual for the filing of
Form No. 549B--Index of Customers.\44\ As promised, after issuance of
the Version 3.0 NOPR, the Commission posted the proposed revised
instruction manual on its Web site. The only proposed changes to the
instruction manual were to Item ID yj (Point identification Code
Qualifier) and Item ID yk (Point identification Code) to specify that
the new proprietary location names and codes were to be used in
identifying points of receipt and delivery in the Index of Customers.
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    \44\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 17 &
n.26.
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b. Comments

    28. Southern Star and INGAA both suggest that three changes are
needed to the proposed instruction manual for the Index of Customers:
\45\ First, in the instructions for Item yh (the Point Identifier
Code), the commenters suggest that the references to G1-Gas Transaction
Point 1 and G2-Gas Transaction Point 2 should be deleted as these are
antiquated codes that are no longer used in the referenced NAESB
business standard.
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    \45\ Southern Star at 5-6 and INGAA at 7-9.
---------------------------------------------------------------------------

    29. Second, for Item yj (the Point identification Code Qualifier),
the commenters suggest that the instructions should simply read ``Enter
95'' as all location codes will now be assigned by the pipeline (the
Transportation Service Provider).
    30. Third, for Item yk (the Point Identification Code), the
commenters suggest that the instructions should simply read ``Enter the
Transportation Service Provider's Location (LOC)'' as there is no
longer an industry common code to enter. INGAA asserts that this item
should read ``Enter the pipeline's location code.'' It makes this
suggestion because ``Pipeline'' is the term utilized throughout the
Instruction Manual.

c. Commission Determination

    31. As to the suggestion to revise the instruction manual to delete
references to references to G1 and G2 in the instructions for Item yh
(the Point Identifier Code), we find this suggestion reasonable and
will make this change.
    32. As to the suggestion to revise the instruction manual to revise
the instructions for Item yj, we see merit in this suggestion, but
believe the suggested language would be clearer if it read ``Enter 95
whenever item yk is the Transmission Service Provider's Location
(LOC)'' and will revise the instruction manual accordingly.
    33. As to the suggestion to revise the instruction manual to revise
the instructions for Item yk to read ``Enter the Transmission Service
Provider's Location (LOC),'' we find this suggestion reasonable and
will make this change.
    34. As to the suggestion to revise the instruction manual to revise
the instructions for Item yj to substitute the term ``Pipeline'' in
lieu of the term ``Transmission Service Provider,'' we are not
persuaded to make this revision, as the term ``Transmission Service
Provider'' matches the terminology in the standards we are
incorporating. As we did after we issued the Version 3.0 NOPR, we will
post a link to the revised instruction manual on our Web site after
issuance of this Final Rule.\46\
---------------------------------------------------------------------------

    \46\ To aid in compliance, promptly after issuance of this Final
Rule, a Revised Instruction Manual for filing Form No. 549B, Index
of Customers, will be posted on the Commission's Web site and may be
accessed at http://www.ferc.gov/industries/gas/indus-act/pipelines/standards.asp. All pipelines are to file their Index of Customers in
accordance with the instructions provided in this manual.
---------------------------------------------------------------------------

    35. Finally, our review of the comments also brought to our
attention that Item yi (Point Name) also needs revision to reflect the
transition to the use of proprietary location codes in the Version 3.0
standards. Thus, the Instructions for Item ID yi will now read as
follows: ``Enter the Location Name (LOC Name) of the point or
facility.''

D. Cross-References/Conforming Changes

1. NOPR Proposal
    36. In the Version 3.0 NOPR, the Commission proposed conforming
changes to reference the new location names and codes at 18 CFR 157.14
and 18 CFR 157.18 (dealing with exhibits), in 18 CFR 260.8 (dealing
with system flow diagrams), and in 18 CFR 284.13 (dealing with
reporting requirements for interstate pipelines).
2. Comments
    37. Along with their comments suggesting that the Commission move
its proposed regulation at Sec.  284.13(c)(2)(6) into a new subsection
Sec.  284.13(f), the commenters point out the Commission missed two
references to common codes in Sec.  284.13(b) and suggest revisions to
the accompanying cross references proposed in the Version 3.0 NOPR.\47\
INGAA further requests two minor additional modifications.\48\ In Sec.
157.14(a), INGAA argues that the Commission should remove the reference
to Exhibit H(iv) that appears in the proposed regulatory text because
Exhibit H(iv) no longer exists. In addition, INGAA requests the
Commission to clarify that it did not intend to delete certain language
after the asterisks in both Sec. Sec.  157.14(a) and 157.18(c).
Specifically, INGAA states that the Commission should revise the
language at the beginning of item 2 of its proposed amendment to Sec.
157.14(a) to state that ``Section 157.14 is amended by revising the
introductory language of paragraph (a) to read as follows:'' (emphasis
added), and insert ``(1)'' before the asterisks. In INGAA's view,

this would remove any doubt about how much of the existing section is
being replaced with the new proposed language.
---------------------------------------------------------------------------

    \47\ INGAA at 2-4, Southern Star at 3-4.
    \48\ INGAA at 7.
---------------------------------------------------------------------------

3. Commission Determination
    38. Given the Commission's determination that, as proposed by the
commenters, the proper provision in which to place the requirement for
pipelines to use ``location code'' rather than ``industry common code''
to identify the location of receipt and delivery points is at 18 CFR
284.13(f), we will make appropriate cross-references. We agree with
INGAA that the inclusion of Exhibit H(iv) in the regulatory text of
proposed Sec.  157.14(a) is in error. Reference to this exhibit was
deleted in Order No. 699 as an erroneous or outdated reference.\49\
Thus, we will delete any reference to Exhibit H(iv) in the regulatory
text we are promulgating in this Final Rule. In addition, as requested,
we will clarify that our revisions to Sec.  157.14(a) and Sec.
157.18(c) are not intended to delete language that follows later in
these provisions.
---------------------------------------------------------------------------

    \49\ Conforming Changes, Order No. 699, FERC Stats. & Regs. ]
31,254 at P 10 (cross-referenced at 120 FERC ] 61,134 (2007)).
---------------------------------------------------------------------------

    39. Finally, as a result of the INGAA comment that we needed to
make additional conforming changes that were overlooked, we also will
make a conforming change to 18 CFR 284.126 to remove the reference to
common codes. Intrastate pipelines filing Form No. 549D should identify
their location codes and names in their list of jurisdictional points
of receipt and delivery.

III. Implementation Schedule

    40. In the Version 3.0 NOPR, the Commission stated that we
anticipated acting on the proposed rule in order to permit these
standards to become effective April 1, 2016 at the same time as the
Gas-Electric Harmonization standards, with compliance filings due
February 1, 2016.\50\ We explained that requiring implementation of the
updated business practice standards and the Gas-Electric Harmonization
standards on the same date should reduce the compliance burden on the
pipelines and avoid confusion.\51\ We also explained our policies on
tariff filings and on waiver requests.\52\
---------------------------------------------------------------------------

    \50\ Version 3.0 NOPR, FERC Stats. & Regs. ] 32,708 at P 23.
    \51\ Id.
    \52\ Id. PP 23-27.
---------------------------------------------------------------------------

    41. None of the comments took issue with the Commission's proposed
implementation schedule. Nor did the comments take issue or seek
clarification with regard to the Commission's explanation of its
policies on tariff filings and on waiver requests. We are not modifying
these policies in this Final Rule and stand by the explanation of those
policies we made in the Version 3.0 NOPR. The Commission will require
interstate natural gas pipelines to comply with the revised NAESB
standards that we are incorporating by reference in this Final Rule
beginning on April 1, 2016. Thus, among other requirements, when
pipelines make their Index of Customers filing for the second quarter
of 2016 and thereafter they should do so using the new location names
and codes for all active points. We are requiring this implementation
schedule to give the interstate natural gas pipelines subject to these
standards adequate time to implement these changes. In addition, the
interstate natural gas pipelines must file tariff records to reflect
the changed standards by February 1, 2016.
    42. In addition, consistent with the requirements in Order Nos.
587-V and 809,\53\ the Commission is including the following compliance
filing requirements to increase the transparency of the pipelines'
incorporation by reference of the NAESB WGQ Standards so that shippers
and the Commission will know which tariff provision(s) implements each
standard as well as the status of each standard.
---------------------------------------------------------------------------

    \53\ Order No. 587-V, FERC Stats. & Regs. ] 31,332 at PP 36-37;
Order No. 809, FERC Stats. & Regs. ] 31,368 at P 169.
---------------------------------------------------------------------------

    (1) The pipelines must designate a single tariff record under which
every NAESB standard currently incorporated by reference by the
Commission is listed.\54\ This section should be a separate tariff
record under the Commission's electronic tariff filing requirement and
should be filed electronically using the eTariff portal using the Type
of Filing Code 580. The Commission will post on its eLibrary Web site
(under Docket No. RM96-1-038) a sample tariff record, to provide filers
an illustrative example to aid them in preparing their compliance
filings; \55\
---------------------------------------------------------------------------

    \54\ See supra n.31.
    \55\ Id.
---------------------------------------------------------------------------

    (2) For each standard, each pipeline must specify in the tariff
record a list of all the NAESB standards currently incorporated by
reference by the Commission:

    (a) whether the standard is incorporated by reference;
    (b) for those standards not incorporated by reference, the
tariff provision that complies with the standard; \56\ and
---------------------------------------------------------------------------

    \56\ For example, pipelines are required to include the full
text of the NAESB nomination and capacity release timeline standards
(WGQ Standards 1.3.2(i-vi) and 5.3.2) in their tariffs. See, e.g.,
Standards for Business Practices of Interstate Natural Gas
Pipelines, Order No. 587-U, FERC Stats. & Regs. ] 31,307, at P 39 &
n.42 (2010). The pipeline would indicate which tariff provision
complies with each of these standards.
---------------------------------------------------------------------------

    (c) a statement identifying any standards for which the pipeline
has been granted a waiver, extension of time, or other variance with
respect to compliance with the standard.\57\
---------------------------------------------------------------------------

    \57\ Shippers can use the Commission's electronic tariff system
to locate the tariff record containing the NAESB standards, which
will indicate the docket in which any waiver or extension of time
was granted.

    (3) If the pipeline is requesting a continuation of an existing
waiver or extension of time, it must include a table in its transmittal
letter that states the standard for which a waiver or extension of time
was granted, and the docket number or order citation to the proceeding
in which the waiver or extension was granted.

IV. Notice of Use of Voluntary Consensus Standards

    43. Office of Management and Budget Circular A-119 (section 11)
(February 10, 1998) provides that federal agencies should publish a
request for comment in a NOPR when the agency is seeking to issue or
revise a regulation proposing to adopt a voluntary consensus standard
or a government-unique standard. In this Final Rule, the Commission is
amending its regulations to incorporate by reference voluntary
consensus standards developed by NAESB's WGQ. In section 12(d) of
NTT&AA, Congress affirmatively requires federal agencies to use
technical standards developed by voluntary consensus standards
organizations to carry out policy objectives or activities determined
by the agencies unless use of such standards would be inconsistent with
applicable law or otherwise impractical.\58\
---------------------------------------------------------------------------

    \58\ Pub L. No. 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
---------------------------------------------------------------------------

    44. In section 12(d) of NTT&AA, Congress affirmatively requires
federal agencies to use technical standards developed by voluntary
consensus standards organizations to carry out policy objectives or
activities determined by the agencies unless use of such standards
would be inconsistent with applicable law or otherwise impractical.

V. Incorporation by Reference

    45. The Office of the Federal Register requires agencies
incorporating material by reference in final rules to discuss, in the
preamble of the final rule, the ways that the materials it incorporates
by

reference are reasonably available to interested parties and how
interested parties can obtain the materials.\59\ The regulations also
require agencies to summarize, in the preamble of the final rule, the
material it incorporates by reference. The seven NAESB standards being
incorporated by reference in this Final Rule can be summarized as
follows:
---------------------------------------------------------------------------

    \59\ 1 CFR 51.5. See Incorporation by Reference, 79 FR 66267
(Nov. 7, 2014).

     Additional Standards (Version 3.0, November 14, 2014,
with minor corrections applied through June 29, 2015). These
standards cover general areas or standards applicable to multiple
business activities, such as creditworthiness and gas/electric
operational communications.
     Nominations Related Standards (Version 3.0, November
14, 2014, with minor corrections applied through June 29, 2015).
These standards define the business processes used to schedule
natural gas service on pipelines.
     Flowing Gas Related Standards (Version 3.0, November
14, 2014, with minor corrections applied through June 29, 2015).
These standards define the business processes related to the
communication of entitlement rights to flowing gas at a location,
the entitlement rights on a contractual basis, the management of
imbalances, and the measurement and gas quality information of the
actual flow of gas.
     Invoicing Related Standards (Version 3.0, November 14,
2014, with minor corrections applied through June 29, 2015). These
standards define the business process for the communication of
charges for services rendered (Invoice), communication of details
about funds rendered in payment for services rendered (Payment
Remittance), and communication of the financial status of a
customer's account (Statement of Account).
     Quadrant Electronic Delivery Mechanism Related
Standards (Version 3.0, November 14, 2014, with minor corrections
applied through June 29, 2015). These standards establish the
framework for the electronic dissemination and communication of
information between parties in the North American wholesale gas
marketplace for EDI/EDM transfers, batch flat file/EDM transfers,
informational postings Web sites, EBB/EDM and interactive flat file/
EDM.
     Capacity Release Related Standards (Version 3.0,
November 14, 2014, with minor corrections applied through June 29,
2015). These standards define the business processes for
communication of information related to the release or transfer of
any portion of a transmission service requester's contract rights
for transportation on pipelines.
     Internet Electronic Transport Related Standards
(Version 3.0, November 14, 2014, with minor corrections applied
through June 29, 2015). These standards define the implementation of
various technologies necessary to communicate transactions and other
electronic data using standard protocols for electronic commerce
over the internet between NAESB trading partners.

    46. Our regulations provide that copies of the NAESB standards
incorporated by reference may be obtained from the North American
Energy Standards Board, 801 Travis Street, Suite 1675, Houston, TX
77002, Phone:<PHONE_NUMBER>. NAESB's Web site is at http://www.naesb.org/. Copies may be inspected at the Federal Energy
Regulatory Commission, Public Reference and Files Maintenance Branch,
888 First Street NE., Washington, DC 20426, Phone:<PHONE_NUMBER>,
http://www.ferc.gov.\60\ The procedures utilized by NAESB make its
standards reasonably available to those affected by the Commission
regulations.\61\ Participants can join NAESB, for an annual membership
cost of $7,000, which entitles them to full participation in NAESB and
enables them to obtain these standards at no cost.\62\ Non-members may
obtain the Individual Standards Manual or Booklets for each standard by
email for $250 per manual or booklet, which in the case of these
standards would total $1,000.\63\ Nonmembers also may obtain the
complete set of Standards Manuals, Booklets, and Contracts on CD for
$2,000. NAESB also provides a free electronic read-only version of the
standards for a three business day period or, in the case of a
regulatory comment period, through the end of the comment period.\64\
In addition, NAESB considers requests for waivers of the charges on a
case by case basis based on need.
---------------------------------------------------------------------------

    \60\ 18 CFR 284.12.
    \61\ As a private, consensus standards developer, NAESB needs
the funds obtained from its membership fees and sales of its
standards to finance the organization. The parties affected by these
Commission regulations generally are highly sophisticated and have
the means to acquire the information they need to effectively
participate in Commission proceedings.
    \62\ North American Energy Standards Board Membership
Application, https://www.naesb.org/pdf4/naesbapp.pdf.
    \63\ NAESB Materials Order Form, https://www.naesb.org//pdf/ordrform.pdf.
    \64\ Procedures for non-members to evaluate work products before
purchasing, https://www.naesb.org/misc/NAESB_Nonmember_Evaluation.pdf. See Incorporation by Reference, 79
FR at 66271, n. 51 & 53 (Nov. 7, 2014) (citing to NAESB's procedure
of providing ``no-cost, no-print electronic access,'' NAESB Comment,
at 1, available at http://www.regulations.gov/#!documentDetail;D=OFR-2013-0001-0023).
---------------------------------------------------------------------------

VI. Information Collection Statement

    47. The collections of information for this Final Rule are being
submitted to the Office of Management and Budget (OMB) for review under
section 3507(d) of the Paperwork Reduction Act of 1995 \65\ and OMB's
implementing regulations.\66\ OMB must approve information collection
requirements imposed by agency rules. The burden estimates for this
Final Rule are for one-time implementation of the information
collection requirements of this Final Rule (including tariff filing,
documentation of the process and procedures, and IT work), and ongoing
burden.
---------------------------------------------------------------------------

    \65\ 44 U.S.C. 3507(d).
    \66\ 5 CFR 1320.
---------------------------------------------------------------------------

    48. The Commission solicits comments from the public on the
Commission's need for this information, whether the information will
have practical utility, the accuracy of the burden estimates,
recommendations to enhance the quality, utility, and clarity of the
information to be collected, and any suggested methods for minimizing
respondents' burden, including the use of automated information
techniques. The burden estimates are for implementing the information
collection requirements of this Final Rule. The Commission asks that
any revised burden estimates submitted by commenters include the
details and assumptions used to generate the estimates.
    49. The collections of information related to this Final Rule fall
under FERC-545 (Gas Pipeline Rates: Rate Change (Non-Formal)) \67\ and
FERC-549C (Standards for Business Practices of Interstate Natural Gas
Pipelines).\68\ The following estimates of reporting burden are related
only to this Final Rule and include the costs to pipelines to comply
with the Commission's directives in this Final Rule. The burden
estimates are primarily related to start-up to implement these
standards and regulations and will not result in ongoing costs.
---------------------------------------------------------------------------

    \67\ FERC-545 covers rate change filings made by natural gas
pipelines, including tariff changes.
    \68\ FERC-549C covers Standards for Business Practices of
Interstate Natural Gas Pipelines.

                                                      One-Time Effects of NOPR in Docket RM96-1-038
                                                                        [Rounded]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Number of    Annual  number                                              Total annual burden       Cost per
                                         respondents    of responses    Total number   Average burden and  cost  hours and total  annual    respondent
                                            \69\       per respondent   of responses         per response                  cost              \70\ ($)
                                                  (1)             (2)     (1)*(2)=(3)  (4).....................  (3)*(4)=(5)............         (5)/(1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-545A \71\.......................             165               1             165  10 hrs.; $837...........  1,650 hrs.; $138,056...            $837
FERC-549C \72\.......................             165               1             165  22 hrs.; $1,841.........  3,630 hrs.; $303,722...          $1,841
                                      ------------------------------------------------------------------------------------------------------------------
    Totals...........................  ..............  ..............  ..............  ........................  5,280 hrs.; $441,778...
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Information Collection Costs: The Commission estimates the average
annualized cost for all respondents to be the following:
---------------------------------------------------------------------------

    \69\ The number of respondents is the number of entities in
which a change in burden from the current standards to the proposed
exists, not the total number of entities from the current or
proposed standards that are applicable.
    \70\ Wage data is based on the Bureau of Labor Statistics data
for 2012 (``May 2012 National Industry-Specific Occupational
Employment and Wage Estimates, [for] Sector 22--Utilities'' at
http://bls.gov/oes/current/naics2_22.htm) and is compiled for the
top 10 percent earned. For the estimate of the benefits component,
see http://www.bls.gov/news.release/ecec.nr0.htm.
    \71\ The mean hourly cost of tariff filings and implementation
for interstate natural gas pipelines is $83.67. This represents the
average wage (salary and benefits for 2,080 annual work-hours) of
the following occupational categories: ``Legal'' ($128.02 per hour),
``Computer Analyst'' ($83.50 per hour), and ``Office and
Administrative'' ($39.49 per hour). Wage data is available from the
Bureau of Labor Statistics at http://bls.gov/oes/current/naics2_22.htm and is compiled for the top 10 percent earned. For the
estimate of the benefits component, see http://www.bls.gov/news.release/ecec.nr0.htm.
    \72\ The mean hourly cost of tariff filings and implementation
for interstate natural gas pipelines is $83.67. It is composed of
the skill sets and related hourly costs described above.

------------------------------------------------------------------------
                                             FERC-545        FERC-549C
------------------------------------------------------------------------
Annualized Capital/Startup Costs........        $138,056        $303,722
Annualized Costs (Operations &                       N/A             N/A
 Maintenance)...........................
                                         -------------------------------
    Total Annualized Costs..............        $138,056        $303,722
------------------------------------------------------------------------
Total Cost for all Respondents = $441,778.

    OMB regulations require OMB to approve certain information
collection requirements imposed by agency rule. The Commission is
submitting notification of this Final Rule to OMB. These information
collections are mandatory requirements.
    Title: FERC-545,\73\ Gas Pipeline Rates: Rates Change (Non-Formal);
FERC-549C, Standards for Business Practices of Interstate Natural Gas
Pipelines
---------------------------------------------------------------------------

    \73\ In the supporting statement for the NOPR, we submitted Gas
and Pipeline Rates: Rate Changes (non-formal) under the temporary
collection no. FERC-545A to ensure timely submission to OMB as
another unrelated item was pending OMB review under FERC-545 (and
only one item per collection can be pending at OMB).
---------------------------------------------------------------------------

    Action: Information collections.
    OMB Control Nos.: 1902-0154, 1902-0174
    Respondents: Business or other for profit (i.e., Natural Gas
Pipelines, applicable to only a few small businesses). Although the
intraday reporting requirements will affect electric plant operators,
the Commission is not imposing the reporting burden of adopting these
standards on those entities.
    Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
    50. Internal Review: The Commission has reviewed the proposed
business practice standards of natural gas pipelines and has determined
that the revisions the Commission makes in this Final Rule to its
regulations are necessary to establish more efficient coordination
between the natural gas and electric industries. Requiring such
information ensures both a common means of communication and common
business practices to eliminate miscommunication for participants
engaged in the sale of electric energy at wholesale and the
transportation of natural gas. These requirements conform to the
Commission's plan for efficient information collection, communication,
and management within the natural gas pipeline industry. The Commission
has assured itself, by means of its internal review, that there is
specific, objective support for the burden estimates associated with
the information requirements.
    51. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director, email:
<EMAIL_ADDRESS>phone:<PHONE_NUMBER>, fax:<PHONE_NUMBER>].
    52. Comments concerning the collections of information and the
associated burden estimates should be sent to the Commission and to the
Office of Management and Budget, Office of Information and Regulatory
Affairs, Washington, DC 20503 [Attention: Desk Officer for the Federal
Energy Regulatory Commission, telephone:<PHONE_NUMBER>, fax: (202)
395-4718]. For security reasons, comments to OMB should be submitted by
email to<EMAIL_ADDRESS>Comments submitted to OMB should
include OMB Control Numbers 1902-0154 and 1902-0174.

VII. Environmental Analysis

    53. The Commission concludes that neither an Environmental
Assessment nor an Environmental Impact Statement is required for this
Final Rule under section 380.4(a) of the Commission's regulations,
which provides a categorical exemption for actions that are clarifying,
corrective, or procedural, or that do not substantively change the
effect of legislation or regulations being amended, for information
gathering, analysis, and dissemination, or for the

sale, exchange, or transportation of natural gas under sections 4, 5,
and 7 of the Natural Gas Act that require no construction of
facilities.\74\
---------------------------------------------------------------------------

    \74\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
---------------------------------------------------------------------------

VIII. Regulatory Flexibility Act

    54. The Regulatory Flexibility Act of 1980 (RFA) \75\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The Small Business Administration (SBA) revised its size standard
(effective January 22, 2014) for electric utilities from a standard
based on megawatt hours to a standard based on the number of employees
including affiliates.\76\
---------------------------------------------------------------------------

    \75\ 5 U.S.C. 601-612.
    \76\ SBA Final Rule on ``Small Business Size Standards:
Utilities,'' 78 FR 77343 (Dec. 23, 2013).
---------------------------------------------------------------------------

    55. This Final Rule applies only to interstate natural gas
pipelines, most of which are not small businesses. The Commission
estimates that approximately 165 interstate pipeline entities are
potential respondents subject to the data reporting requirements of
FERC-545 and also are subject to data collection FERC 549-C reporting
requirements. For the year 2012 (the most recent year for which
information is available), only eleven companies not affiliated with
larger companies had annual revenues of less than $25.5 million and are
defined by the SBA as ``small entities.'' These companies constitute
about seven percent of the total universe of potential respondents. The
Commission estimates that the one-time implementation cost of the
proposals in this Final Rule is $441,778 (or $2,677 per entity,
regardless of entity size).\77\ The Commission does not consider the
estimated $2,677 impact per entity to be significant. Moreover, these
requirements are designed to benefit all customers, including small
businesses that must comply with them. Further, as noted above,
adoption of consensus standards helps ensure the reasonableness of the
standards by requiring that the standards draw support from a broad
spectrum of industry participants representing all segments of the
industry. Because of that representation and the fact that industry
conducts business under these standards, the Commission's regulations
should reflect those standards that have the widest possible support.
Accordingly, pursuant to Sec.  605(b) of the RFA,\78\ the Commission
certifies that this Final Rule will not have a significant economic
impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \77\ This number is derived by dividing the total cost figure by
the number of respondents. $441,778/165 = $2,677.
    \78\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------

IX. Document Availability

    56. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5:00
p.m. Eastern time) at 888 First Street NE., Room 2A, Washington, DC
20426.
    57. From FERC's Home Page on the Internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number excluding the last three digits of this document in the docket
number field.
    58. User assistance is available for eLibrary and the FERC's Web
site during normal business hours from FERC Online Support at 202-502-
6652 (toll free at 1-866-208-3676) or email at
<EMAIL_ADDRESS>or the Public Reference Room at (202) 502-
8371, TTY<PHONE_NUMBER>. Email the Public Reference Room at
<EMAIL_ADDRESS>
X. Effective Date and Congressional Notification

    59. These regulations are effective December 2, 2015. The
Commission has determined (with the concurrence of the Administrator of
the Office of Information and Regulatory Affairs of OMB) that this rule
is not a ``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996. This Final Rule is being
submitted to the Senate, House, and Government Accountability Office.

List of Subjects

18 CFR Parts 157 and 260

    Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 284

    Incorporation by reference, Natural gas, Reporting and
recordkeeping requirements.

    By the Commission.
    Issued: October 16, 2015.
Kimberly D. Bose,
Secretary.
    In consideration of the foregoing, the Commission amends parts 157,
260, and 284, chapter I, title 18, Code of Federal Regulations, as
follows.

PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER
SECTION 7 OF THE NATURAL GAS ACT

0
1. The authority citation for part 157 continues to read as follows:

    Authority: 15 U.S.C. 717-717z.

0
2. Section 157.14 is amended by revising paragraph (a) to read as
follows:

Sec.  157.14  Exhibits.

    (a) To be attached to each application. All exhibits specified must
accompany each application when tendered for filing. Together with each
exhibit applicant must provide a full and complete explanation of the
data submitted, the manner in which it was obtained, and the reasons
for the conclusions derived from the exhibits. If the Commission
determines that a formal hearing upon the application is required or
that testimony and hearing exhibits should be filed, the Secretary will
promptly notify the applicant that submittal of all exhibits and
testimony of all witnesses to be sponsored by the applicant in support
of his case-in-chief is required. Submittal of these exhibits and
testimony must be within 20 days from the date of the Secretary's
notice, or any other time as the Secretary will specify. Exhibits,
except exhibits F, F- 1, G, G-I, and G-II, must be submitted to the
Commission on electronic media as prescribed in Sec.  385.2011 of this
chapter. Receipt and delivery point information required in various
exhibits must be labeled with a location point name and code in
conformity with the location name and code the pipeline has adopted in
conformance with Sec.  284.13(f) of this chapter. Intervenors and
persons becoming intervenors after the date of the Secretary's notice
must be advised by the applicant of the afore-specified exhibits and
testimony, and must be furnished with copies upon request. If this
section requires an applicant to reveal Critical Energy Infrastructure
Information (CEII), as defined by Sec.  388.113(c) of this chapter, to
any person, the applicant shall follow the procedures set out in Sec.
157.10(d).
* * * * *

0
3. Section 157.18 is amended by revising paragraph (c) introductory
text to read as follows:

Sec.  157.18  Applications to abandon facilities or service; exhibits.

    (c) Exhibit V--Flow diagram showing daily design capacity and
reflecting operation of applicant's system after abandonment. Receipt
and delivery point information required in various exhibits must be
labeled with a location point name and code in accordance with the
location name and code the pipeline has adopted in conformance with
Sec.  284.13(f) of this chapter. A flow diagram showing daily design
capacity and reflecting operating conditions of applicant's system
after abandonment of facilities on that segment of the system affected
by the abandonment, including the following:
* * * * *

PART 260--STATEMENTS AND REPORTS (SCHEDULES)

0
4. The authority citation for part 260 continues to read as follows:

    Authority: 15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352.

0
5. Section 260.8 is amended by revising paragraph (a) to read as
follows:

Sec.  260.8  System flow diagrams: Format No. FERC 567.

    (a) Each Major natural gas pipeline company, having a system
delivery capacity in excess of 100,000 Mcf per day (measured at 14.73
p.s.i.a. and 60[deg] F), shall file with the Commission by June 1 of
each year five (5) copies of a diagram or diagrams reflecting operating
conditions on its main transmission system during the previous twelve
months ended December 31. For purposes of system peak deliveries, the
heating season overlapping the year's end shall be used. Facilities
shall be those installed and in operation on December 31 of the
reporting year. All volumes shall be reported on a uniform stated
pressure and temperature base. Receipt and delivery point information
required in various exhibits must be labeled with a location point name
and code in accordance with the location name and code adopted by the
pipeline in accordance with Sec.  284.13(f) of this chapter.
* * * * *

PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES

0
6. The authority citation for part 284 continues to read as follows:

    Authority: 15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352;
43 U.S.C. 1331-1356.

0
7. Section 284.12 is amended by revising paragraph (a)(1) to read as
follows:

Sec.  284.12  Standards for pipeline business operations and
communications.

    (a) * * *
    (1) An interstate pipeline that transports gas under subparts B or
G of this part must comply with the business practices and electronic
communications standards as promulgated by the North American Energy
Standards Board, as incorporated herein by reference in paragraphs
(a)(1)(i) thru (vii) of this section.
    (i) Additional Standards (Version 3.0, November 14, 2014, with
minor corrections applied through June 29, 2015);
    (ii) Nominations Related Standards (Version 3.0, November 14, 2014,
with minor corrections applied through June 29, 2015);
    (iii) Flowing Gas Related Standards (Version 3.0, November 14,
2014, with minor corrections applied through June 29, 2015);
    (iv) Invoicing Related Standards (Version 3.0, November 14, 2014,
with minor corrections applied through June 29, 2015);
    (v) Quadrant Electronic Delivery Mechanism Related Standards
(Version 3.0, November 14, 2014, with minor corrections applied through
June 29, 2015);
    (vi) Capacity Release Related Standards (Version 3.0, November 14,
2014, with minor corrections applied through June 29, 2015); and
    (vii) Internet Electronic Transport Related Standards (Version 3.0,
November 14, 2014, with minor corrections applied through June 29,
2015).
* * * * *

0
8. Section 284.13 is amended by revising paragraphs (b)(1)(vi),
(b)(2)(iv) and (c)(2)(vi), and adding paragraph (f) to read as follows:

Sec.  284.13  Reporting requirements for interstate pipelines.

    (b) * * *
    (1) * * *
    (vi) The receipt and delivery points and the zones or segments
covered by the contract, including the location name and code adopted
by the pipeline in conformance with paragraph (f) of this section for
each point, zone or segment;
* * * * *
    (2) * * *
    (iv) The receipt and delivery points and the zones or segments
covered by the contract, including the location name and code adopted
by the pipeline in conformance with paragraph (f) of this section for
each point, zone or segment;
* * * * *
    (c) * * *
    (2) * * *
    (vi) The receipt and delivery points and the zones or segments
covered by the contract, including the location name and code adopted
by the pipeline in conformance with paragraph (f) of this section for
each point, zone or segment;
* * * * *
    (f) Location codes. An interstate pipeline must maintain a posting
on its publicly available Internet Web site of the pipeline's location
names and codes for all current and inactive receipt and delivery
points on its system, including, for each point: Direction of flow, the
location of the point, the location zone if such exists, the Commission
company identification code (CID), if any, of the upstream and/or
downstream entity, the location type, the current status as active and
inactive, and the date(s) the point becomes active or inactive. The
pipeline must provide the information in downloadable file formats, in
conformity with the requirements of 18 CFR 284.12 of this chapter.

0
9. Section 284.126 is amended by revising paragraph (b)(1)(iv) to read
as follows:

Sec.  284.126  Reporting requirements.

    (b) * * *
    (1) * * *
    (iv) The primary receipt and delivery points covered by the
contract, identified by the list of points that the pipeline has
published with the Commission;
* * * * *
[FR Doc. 2015-27806 Filed 10-30-15; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 18 (Friday, January 26, 2018)]
[Notices]
[Pages 3816-3819]
[FR Doc No: 2018-01363]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82548; File No. SR-CBOE-2018-005]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Fees Schedule Concerning Firm Incentive Programs

January 19, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 12, 2017, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``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.
---------------------------------------------------------------------------

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

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule. The text of the
proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, 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 its Fees Schedule. Particularly, the
Exchange proposes to amend Footnote 11 of its Fees Schedule, which
governs the Clearing Trading Permit Holder Fee Cap, Proprietary
Products Sliding Scale, Proprietary VIX Sliding Scale, and Supplemental
VIX Total Firm Discount (collectively, ``Firm Incentive Programs'')
which applies to (i) Clearing Trading Permit Holder proprietary orders
(``F'' origin code), and (ii) orders of Non-Trading Permit Holder
Affiliates (``Non-TPH Affiliates'') of a Clearing Trading Permit Holder
(``Clearing TPH'') orders (``L'' origin code). Footnote 11 currently
defines a ``Non-Trading Permit Holder Affiliate'' for this purpose as a
100% wholly-owned affiliate or subsidiary of a Clearing TPH that is
registered as a United States or foreign broker-dealer and that is not
a Cboe Options Trading Permit Holder (``TPH''). It also provides that
only proprietary orders of the Non-TPH Affiliate effected for purposes
of hedging the proprietary over-the-counter trading of the Clearing TPH
or its affiliates will be included in calculating the Firm Incentive
Programs. Additionally, Footnote 11 provides that the Exchange will
aggregate the fees and trading activity of separate Clearing TPHs for
the purposes of the Firm Incentive Programs if there is at least 75%
common ownership between the Clearing TPHs as reflected on each
Clearing TPH's Form BD, Schedule A. Footnote 11 further states that
each Clearing TPH is responsible for notifying the TPH Department of
all of its affiliations so that fees and contracts of the Clearing TPH
and its affiliates may be aggregated and each Clearing TPH is required
to inform the Exchange immediately of any event that causes an entity
to cease to be an affiliate. A Clearing TPH is also required to certify
the affiliate status of any Non-TPH Affiliate whose trading activity it
seeks to aggregate.
    The Exchange first proposes to modify which ``L'' orders may be
included in calculating the Firm Incentive Programs. Particularly, the
Exchange proposes to eliminate the requirement that to be included in
calculating the Firm Incentive Programs, ``L'' orders must be
proprietary orders of a Non-TPH Affiliate effected for purposes of
hedging the proprietary over-the-counter trading of the Clearing TPH or
its affiliates. In its place, the Exchange proposes to provide that all
proprietary orders of a Non-TPH Affiliate may be included in the above-
mentioned calculations. The Exchange wishes to encourage Non-TPH
Affiliates to send all of their proprietary orders to the Exchange, not
just transactions that are effected for purposes of hedging over-the-
counter trading.
    Next, the Exchange proposes to clarify that in order to provide
``L'' origin code rates to ``L'' origin code orders, the orders need to
clear through an Exchange-registered OCC number. The Exchange notes
that if an order marked with an ``L'' origin code uses a non-Exchange
registered OCC clearing number, the orders would not be aggregated with
any ``F'' orders, as the clearing number is not known to the Exchange's
billing system. In order to avoid confusion, the Exchange proposes to
make clear that only proprietary orders of a Non-TPH Affiliate that
clears through a Cboe Options-registered OCC clearing number(s) will be
included in calculating the Firm Incentive Programs. Similarly, the
Exchange wishes to further clarify Footnote 16 and add a reference to
``L'' origin codes to Footnote 16. Footnote 16 currently provides that
Broker-Dealer transaction fees (i.e., fees assessed for orders with a
``B'' origin code) will apply to certain orders with an ``F'' origin
code if those orders are from OCC members that are not Cboe Options
TPHs. As noted above, if an order uses a non-Exchange registered OCC
clearing number, the clearing number is not known to the Exchange's
billing system. This is true regardless of if the order came from an
OCC member that is or is not a Cboe Options TPH. As such, the Exchange
proposes to also clarify that ``F'' and ``L'' orders will be billed as
``B'' orders if the orders are from OCC numbers that are not from Cboe
Options TPHs or are not registered with the Exchange.
    The Exchange next proposes to eliminate the requirement that each
Clearing TPH certify the affiliate status of any Non-TPH Affiliate
who's trading activity it seeks to aggregate. The Exchange believes
that it is incumbent on any TPH marking an order with any origin code
to ensure that it is marking the order appropriately and meeting any
stated criteria. Orders should only be marked with an ``L'' origin code
if it meets the definition provided for in Footnote 11, which, as noted
above, requires that the order be from a 100% wholly-owned affiliate or
subsidiary of a Clearing TPH that is registered as a United States or
foreign broker-dealer and that is not a Cboe Options TPH. Accordingly,
the Exchange does not believe it's necessary for further certification
and therefore does not believe this language is necessary to maintain
in the Fees Schedule.
    Lastly, the Exchange proposes to (i) relocate to a new Footnote and
(2) modify, the language currently in Footnote 11 requiring each
Clearing TPH to notify the TPH Department of all of its affiliations
and of any event that causes an entity to cease to be an affiliate.
Particularly, the Exchange notes that the definition of an
``affiliate'' as used in Footnote 11 (i.e., 75% common ownership
between the firms as reflected on each firm's Form BD, Schedule A) is
also referenced numerous times throughout the Fees Schedule.
Particularly, there are a number of other occasions for which the
Exchange may aggregate activity between affiliates.\3\ As such, the
Exchange believes it would be more appropriate to relocate the notice
requirement to its own footnote (proposed Footnote 39) and expand the
scope of the notice requirement to apply to all TPHs (not just Clearing
TPHs). Accordingly, the Fees Schedule will now provide that each TPH is
responsible for notifying the Exchange of all its affiliates and is
required to inform the Exchange immediately of any event that causes an
entity to cease to be an affiliate, in a form and manner to be
determined by the Exchange. As noted above, an ``affiliate'' is defined
as having at least 75% common ownership between two entities as
reflected on each entity's Form BD, Schedule A.
---------------------------------------------------------------------------

    \3\ See e.g., Cboe Exchange, Inc. Fees Schedule, Footnote 10,
which provides the Exchange will aggregate the trading activity of
separate Liquidity Provider firms for purposes of the Liquidity
Provider Sliding Scale if there is at least 75% common ownership
between the firms as reflected on each firm's Form BD, Schedule A.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations

thereunder applicable to the Exchange and, in particular, the
requirements of Section 6(b) of the Act.\4\ Specifically, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \5\ requirements that the rules of an exchange be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with Section 6(b)(4) of
the Act,\6\ which requires that Exchange rules provide for the
equitable allocation of reasonable dues, fees, and other charges among
its Trading Permit Holders and other persons using its facilities.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes allowing a Clearing TPH to aggregate its
trading activity for purposes of the Firm Incentive Programs with its
Non-TPH Affiliate(s) for all proprietary orders of the Non-TPH
Affiliate(s) and not just those effected for purposes of hedging the
proprietary over-the-counter trading of the Clearing TPH or its
affiliates is equitable, reasonable and not unfairly discriminatory.
Particularly, the Exchange notes that ``L'' orders will continue to get
the benefit of ``L'' order rates (now just a wider universe of orders).
The Exchange believes it's equitable and not unfairly discriminatory to
expand the scope of allowable ``L'' orders, as it still requires Non-
TPH Affiliate(s) to be registered as a United States or foreign broker-
dealer and for there to be complete identity of common ownership
between the Clearing TPH and Non-TPH Affiliate. The Exchange does not
believe it's necessary to continue to require the Non-TPH Affiliate's
orders be effected for purposes of hedging. The elimination of this
requirement would encourage the sending of all Non-TPH Affiliate's
proprietary orders, which thereby brings greater trading activity,
volume and liquidity, benefitting all market participants.
    The Exchange next believes that clarifying Footnote 11 to state
that only proprietary orders of a Non-TPH Affiliate (``L'' origin code)
that clear through a Cboe Options-registered OCC clearing number(s)
will be processed as an ``L'' order, maintains transparency in the Fees
Schedule and reduces potential confusion. For the same reasons, the
Exchange is further clarifying Footnote 16 to provide that both ``F''
and ``L'' orders will be processed as Broker-Dealer (origin code ``B'')
orders if they are from an OCC number that does not belong to a Cboe
Options TPH or is not registered with the Exchange. As noted above,
orders marked with either an ``F'' or ``L'' origin code that clear
through a non-Exchange registered OCC clearing number are not processed
as such, as the clearing number is not known to the Exchange's billing
system. The Exchange believes that explicitly clarifying this
requirement in both Footnote 11 and Footnote 16 will reduce potential
confusion. The alleviation of confusion removes impediments to and
perfects the mechanism of a free and open market and a national market
system, and, in general, protects investors and the public interest.
    The Exchange next believes it's reasonable to eliminate the
requirement that each Clearing TPH certify the affiliate status of any
Non-TPH Affiliate who's trading activity it seeks to aggregate because
the Exchange believes marking an order with an ``L'' origin code should
serve as certification that the order meets the requirements described
above. Therefore, the Exchange does not believe this current language
is necessary to maintain in the Fees Schedule. Eliminating unnecessary
language reduces potential confusion, thereby removing impediments to
and perfecting the mechanism of a free and open market and a national
market system, and, in general, protecting investors and the public
interest.
    Lastly, the Exchange believes its proposal to (i) relocate the
language requiring each Clearing TPH to notify the TPH Department of
all of its affiliations and of any event that causes an entity to cease
to be an affiliate from Footnote 11 to a new Footnote and (ii) modify
the language to expand the scope of the language such that the notice
requirement applies to the entire Fees Schedule, and all TPHs
generally, promotes transparency in the Fees Schedule and reduces
confusion. As noted above, the definition of an affiliate (i.e., 75%
common ownership between the firms as reflected on each firm's Form BD,
Schedule A) is referenced numerous times throughout the Fees Schedule
and there are a number of other occasions for which the Exchange
aggregates activity between such affiliates. As such, the Exchange
believes it would be more appropriate for the language requiring notice
of affiliations and termination of such relationships to be applicable
to all TPHs and therefore be relocated to its own footnote which would
apply to the entire Fees Schedule. Additionally, clarifying that such
information shall be communicated to the Exchange in a form and manner
to be determined by the Exchange allows the Exchange to provide a
uniform and orderly manner in which to receive the information.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will
impose any burdens on competition that are not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because to the extent Non-TPH
Affiliates receive beneficial pricing, the Exchange notes that Non-TPH
Affiliate(s) are required to have complete identity of common ownership
between itself and its affiliated Clearing TPH, and Clearing TPHs have
clearing obligations that other market participants do not have.
Moreover, the proposed changes are intended to encourage market
participants to bring increased volume to the Exchange (which benefits
all market participants). Additionally, the clarifying rule changes are
not intended to address any competitive issues but rather to provide
more clarity and transparency regarding Non-TPH Affiliates and
affiliates. The Exchange does not believe that the proposed change will
cause any unnecessary burden on intermarket competition because the
proposed change only affects trading on Cboe Options. To the extent
that the proposed changes make Cboe Options a more attractive
marketplace for market participants at other exchanges, such market
participants are welcome to become Cboe Options market participants.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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)

of the Act \7\ and paragraph (f) of Rule 19b-4 \8\ thereunder. At any
time within 60 days of the filing of the proposed rule change, the
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act. If the Commission takes such
action, the Commission will institute proceedings to determine whether
the proposed rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CBOE-2018-005 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2018-005. 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 the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2018-005 and should be submitted on
or before February 16, 2018.
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01363 Filed 1-25-18; 8:45 am]
 BILLING CODE 8011-01-P