[Federal Register Volume 78, Number 96 (Friday, May 17, 2013)]
[Proposed Rules]
[Pages 29089-29091]
[FR Doc No: 2013-11753]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2013-0021]
RIN 1625-AA00

Safety Zones; Hawaiian Island Commercial Harbors, HI

AGENCY: Coast Guard, DHS.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Coast Guard proposes to establish permanent safety zones
in Hawaii's nine commercial harbors (Nawiliwili and Port Allen, Kauai;
Barber's Point and Honolulu Harbor, Oahu; Kaunakakai, Molokai;
Kaumalapau, Lanai; Kahalui, Maui and Kawaihae and Hilo on the Island of
Hawaii). The purpose of these safety zones is to expedite the
evacuation of the harbors in the event a tsunami warning is issued for
the main Hawaiian Islands.

DATES: Comments and related material must be received by the Coast
Guard on or before June 17, 2013.

ADDRESSES: You may submit comments identified by docket number using
any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail or Delivery: Docket Management Facility (M-30), U.S.
Department of Transportation, West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC 20590-0001. Deliveries
accepted between 9 a.m. and 5 p.m., Monday through Friday, except
federal holidays. The telephone number is<PHONE_NUMBER>.
    See the ``Public Participation and Request for Comments'' portion
of the SUPPLEMENTARY INFORMATION section below for further instructions
on submitting comments. To avoid duplication, please use only one of
these three methods.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Lieutenant Commander Scott O. Whaley, Waterways
Management Division, U.S. Coast Guard Sector Honolulu; telephone (808)
522-8264 (ext. 352), email<EMAIL_ADDRESS>If you have
questions on viewing or submitting material to the docket, call Barbara
Hairston, Program Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Acronyms

DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking

A. Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided.

1. Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation. You may submit your comments and material online at
http://www.regulations.gov, or by fax, mail, or hand delivery, but
please use only one of these means. If you submit a comment online, it
will be considered received by the Coast Guard when you successfully
transmit the comment. If you fax, hand deliver, or mail your comment,
it will be considered as having been received by the Coast Guard when
it is received at the Docket Management Facility. We recommend that you
include your name and a mailing address, an email address, or a
telephone number in the body of your document so that we can contact
you if we have questions regarding your submission.
    To submit your comment online, go to http://www.regulations.gov,
type the docket number USCG-2013-0021 in the ``SEARCH'' box and click
``SEARCH.'' Click on ``Submit a Comment'' on the line associated with
this rulemaking.
    If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit comments by mail and would
like to know that they reached the Facility, please enclose a stamped,
self-addressed postcard or envelope. We will consider all comments and
material received during the comment period and may change the rule
based on your comments.

2. Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
type the docket number USCG-2013-0021 in the ``SEARCH'' box and click
``SEARCH.'' Click on Open Docket Folder on the line associated with
this rulemaking. You may also visit the Docket Management Facility in
Room W12-140 on the ground floor of the Department of Transportation
West Building, 1200 New Jersey Avenue SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays.

3. Privacy Act

    Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

4. Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for one, using one of the methods specified under ADDRESSES.
Please explain why you believe a public meeting would be beneficial. If
we determine that one would aid this rulemaking, we will hold one at a
time and place announced by a later notice in the Federal Register.

B. Basis and Purpose

    Tsunamis can occur at any time. There is no tsunami season. The
destructive potential of a tsunami can take lives, cause millions of
dollars in property damage, and alter sensitive ecologies. The tsunami
generated by the 9.0 earthquake that struck Japan in 2011 reached
Hawaiian shores in approximately seven hours. More recently, in 2012 a
tsunami was generated by a 7.7 earthquake originating from the Queen
Charlotte Islands of British Columbia. The surge created from this
earthquake reached the Hawaiian shores in less than four hours. No time
can be wasted in the evacuation of the harbors once a tsunami warning
has been issued.
    The purpose for this rule is to evacuate and close Hawaii's
commercial harbors, collectively or individually, after a tsunami
warning has been issued. It is crucial to minimize the number of
vessels in Hawaii's commercial harbors to reduce the amount of vessel
and port damage and potential harbor blockage that could occur in the
event of a tsunami reaching the shores of the Hawaiian Islands. All
Hawaiian Islands rely heavily on their commercial harbors for receiving
goods and services. Dedicated on-island commercial salvage assets are
limited so blockage of a

channel or harbor by a vessel that failed to evacuate could have
devastating impacts on local residents for a significant period of
time.
    The Coast Guard has met with industry partners, commercial
mariners, and recreational boaters in the creation of this rule.
Vessels are much safer at sea beyond the 300 feet or 50 fathom curve
than in port during a tsunami.
    The statutory basis for this rulemaking is 33 U.S.C. 1231, which
gives the Coast Guard, under a delegation from the Secretary of
Homeland Security, regulatory authority to enforce the Ports and
Waterways Safety Act.

C. Discussion of Proposed Rule

    This rule will create safety zones encompassing each of Hawaii's
commercial harbors. In the event a tsunami warning is issued, the Coast
Guard will enforce these safety zones, closing those harbors within the
anticipated impact area of the tsunami. When the safety zones are
activated for enforcement, no vessels will be permitted to enter the
closed harbors. Enforcement of these safety zones will also trigger an
immediate evacuation of the closed harbors. The harbors will remain
closed until the Coast Guard reopens the specific harbor(s) impacted.
Once the threat has passed and harbors have been assessed as safe for
reentry of commercial navigation, the safety zones will be deactivated
allowing vessels to transit the harbors in accordance with already
established regulations.

D. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on a number of these statutes or executive orders.

1. Regulatory Planning and Review

    This proposed rule is not a significant regulatory action under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
as supplemented by Executive Order 13563, Improving Regulation and
Regulatory Review, and does not require an assessment of potential
costs and benefits under section 6(a)(3) of Executive Order 12866 or
under section 1 of Executive Order 13563. The Office of Management and
Budget has not reviewed it under those Orders. This safety zone will
only be activated for enforcement in the event the state of Hawaii is
issued a tsunami warning for the safety of lives and property.

2. Impact on Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered the impact of this proposed rule on small entities. The
Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule
will not have a significant economic impact on a substantial number of
small entities. This safety zone would be activated, and thus subject
to enforcement only when a tsunami warning is issued for the Main
Hawaiian Islands. Once the threat has passed and harbors have been
assessed as safe for reentry of commercial navigation, the safety zone
will be deactivated allowing vessels to transit the harbors in
accordance with already established regulations.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

3. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule. If the rule would affect
your small business, organization, or governmental jurisdiction and you
have questions concerning its provisions or options for compliance,
please contact the person listed in the FOR FURTHER INFORMATION
CONTACT, above. The Coast Guard will not retaliate against small
entities that question or complain about this proposed rule or any
policy or action of the Coast Guard.

4. Collection of Information

    This proposed rule will not call for a new collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520.).

5. Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this proposed rule under that Order and
determined that this rule does not have implications for federalism.

6. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

7. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this proposed rule would not
result in such an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

8. Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

9. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

10. Protection of Children From Environmental Health Risks

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

11. Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

12. Energy Effects

    This proposed rule is not a ``significant energy action'' under
Executive Order 13211, Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use.

13. Technical Standards

    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

14. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have made a preliminary determination that this action is one of a
category of actions that do not individually or cumulatively have a
significant effect on the human environment. This rule will evacuate
commercial harbors which anticipate tsunami impact. This rule is
categorically excluded, under figure 2-1, paragraph (34)(g), of the
Instruction. We seek any comments or information that may lead to the
discovery of a significant environmental impact from this proposed
rule.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50
U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L.
107-295, 116 Stat. 2064; Department of Homeland Security Delegation
No. 0170.1.

0
2. Add Sec.  165. 14-1414 to read as follows:

Sec.  165. 14-1414   Safety Zones; Hawaiian Islands Commercial Harbors;
HI.

    (a) Location. The following areas are safety zones: The commercial
harbors of Nawiliwili and Port Allen, Kauai; Barber's Point and
Honolulu Harbor, Oahu; Kaunakakai, Molokai; Kaumalapau, Lanai; Kahalui,
Maui and Kawaihae and Hilo on the Island of Hawaii. The activation of
these safety zones may include any combination of these harbors, or all
of these harbors, dependent upon details in the tsunami warning. This
safety zone extends from the surface of the water to the ocean floor.
    (b) Regulations. When the safety zone is activated and, therefore,
subject to enforcement, no person or vessel may enter or remain in the
safety zone except for support vessels, support personnel, and other
vessels authorized by the Captain of the Port, Sector Honolulu (COTP),
or a designated representative of the COTP. All other applicable
regulations in 33 CFR 165 remain in effect and subject to enforcement.
You may contact the Coast Guard on VHF Channel 16 (156.800 MHz) or at
telephone number<PHONE_NUMBER> to obtain clarification on safety zone
transits and locations. Coast Guard patrol boats will be enforcing the
safety zone and providing on-scene direction.
    (c) Enforcement period. Paragraph (b) of this section will be
enforced when a tsunami warning has been issued for the Hawaiian
Islands. The COTP will notify the public of any enforcement, suspension
of enforcement, or termination of enforcement through the following
appropriate means to ensure the widest publicity: broadcast notice to
mariners, notices of enforcement, press releases and Homeport.
Following the passage of a tsunami and harbor assessments, de-
activation of these safety zones will be conducted through radio
broadcast by the U.S. Coast Guard.
    (d) Penalties. Vessels or persons violating this rule would be
subject to the penalties set forth in 33 U.S.C. 1232 and 50 U.S.C. 192.

    Dated: April 6, 2013.
J.M. Nunan,
Captain, U.S. Coast Guard, Captain of the Port Honolulu.
[FR Doc. 2013-11753 Filed 5-16-13; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 84, Number 248 (Friday, December 27, 2019)]
[Notices]
[Pages 71529-71531]
[FR Doc No: 2019-27897]

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. DOT-OST--2019-0184]

National Freight Strategic Plan: Request for Information

ACTION: Request for information (RFI).

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SUMMARY: The safe and efficient movement of freight is vital to the
Nation's economic growth and to the creation of well-paying jobs for
millions of Americans. The Fixing America's Surface Transportation
(FAST) Act required DOT to develop a National Freight Strategic Plan
(NFSP) that includes eleven statutorily required components to address
multimodal freight transportation. The Department of Transportation
(DOT) seeks information from the public, including stakeholders (e.g.,
State and local agencies, private owners and operators, industry trade
groups, shippers and beneficial cargo owners, etc.) to aid development
of the NFSP.

DATES: Comments must be received on or before February 10, 2020. DOT
will consider comments filed after this date to the extent practicable.

ADDRESSES: You may submit comments identified by DOT Docket Number OST-
2019-0184 by any of the following methods:
     Electronic Submission: Go to http://www.regulations.gov.
Search by using the docket number (provided above). Follow the
instructions for submitting comments on the electronic docket site.
     Mail: Docket Management Facility; U.S. Department of
Transportation, 1200 New Jersey Avenue SE, Room PL-401, Washington, DC
20590-0001.
     Hand Delivery: Room PL-401 of the Department of
Transportation, 1200 New Jersey Avenue SE, Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal Holidays.
    Instructions: All submissions must include the agency name and
docket numbers.
    Note: All comments received, including any personal information,
will be posted without change to the docket and is accessible via
http://www.regulations.gov. Input submitted online via
www.regulations.gov is not

immediately posted to the site. It may take several business days
before your submission is posted.

FOR FURTHER INFORMATION CONTACT: Ryan Endorf at<EMAIL_ADDRESS>or
at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background

    The nation's freight transportation system is a complex network of
almost seven million miles of highways, railways, navigable waterways,
and pipelines. The components of this network are linked through
hundreds of seaports, airports, and intermodal facilities. This system
accommodates the movement of raw materials and finished products from
the entire spectrum of the agricultural, manufacturing, energy, retail,
and other sectors of the United States' economy.
    The Moving Ahead for Progress in the 21st Century Act (MAP-21; Pub.
L. 112-141) required DOT to develop a National Freight Strategic Plan
(NFSP). On October 18, 2015, DOT issued the draft NFSP (compliant with
the MAP-21 requirements) for public comment, available at
www.transportation.gov/freight and at http://www.regulations.gov/#!docketDetail;D=DOT-OST-2015-0248. On December 4, 2015, the President
signed the FAST Act (Pub. L. 114-94) into law. Section 8001 of the FAST
Act continues the requirement that the DOT develop an NFSP, expanding
the focus to include a multimodal approach.
    The FAST Act required DOT to develop a National Freight Strategic
Plan (NFSP) that included (1) an assessment of the condition and
performance of the National Multimodal Freight Network; (2) forecasts
of freight volumes for the succeeding 5-, 10-, and 20-year periods; (3)
an identification of major trade gateways and national freight
corridors that connect major population centers, trade gateways, and
other major freight generators; (4) an identification of bottlenecks on
the National Multimodal Freight Network that create significant freight
congestion, based on a quantitative methodology developed by the Under
Secretary, which shall include at a minimum--(a) information from the
Freight Analysis Framework (FAF); and (b) to the maximum extent
practicable, an estimate of the cost of addressing each bottleneck and
an operational improvements that could be implemented; (5) an
assessment of statutory, regulatory, technological, institutional,
financial, and other barriers to improved freight transportation
performance, and a description of opportunities for overcoming those
barriers; (6) a process for addressing multistate projects and
encouraging jurisdictions to collaborate; (7) strategies to improve
freight intermodal connectivity; (8) an identification of corridors
providing access to energy exploration, development, installation, or
production areas; (9) an identification of corridors providing access
to major areas for manufacturing, agriculture, or natural resources;
(10) an identification of best practices for improving the performance
of the National Multimodal Freight Network, including critical commerce
corridors and rural and urban access to critical freight corridors; and
(11) an identification of best practices to mitigate the impacts of
freight movement on communities.
    A national freight strategy will be helpful to inform
infrastructure planning and to support future freight efficiencies. The
safe and efficient movement of freight is vital to the Nation's
economic growth and to the creation of well-paying jobs for millions of
Americans. In 2015, the U.S. transportation system moved approximately
49 million tons of freight per day worth more than $52 billion and DOT
estimates 13.3 million people were employed in transportation or
transportation-related industries in 2017. DOT estimates the net value
of U.S. transportation capital to be $7.7 trillion in 2016 with the
public sector owning $4.2 trillion and the private sector owning $3.5
trillion. DOT estimates that freight tonnage will increase by 44
percent between 2015 and 2045 which will place increasing strain on our
Nation's freight system. Today, that freight system moves approximately
18 billion tons of freight every year across all the modes, but
congestion has been increasing, particularly on our Nation's highways.
The trucking industry experienced almost 1.2 billion hours of delay in
2016 because of traffic congestion on the National Highway System, at a
cost of $34 billion in truck driver wages, not including wasted fuel
and increased inventory carrying costs for affected shippers and
beneficial cargo owners (BCOs). Prior to 2005, virtually all crude oil
was moved via pipeline; however, by 2011, rail shipments of crude oil
have increased substantially and increases in domestic energy
production, including increased liquefied natural gas movements will
require more interplay between pipelines, rail, and tanker/barge
movements. Air cargo transportation is particularly important for high
value commodities, such as electronics and pharmaceuticals, and the FAF
projects air cargo to be the fastest growing freight mode with annual
tonnage growth of 4.3 percent.
    Rural and urban citizens and businesses depend on the safe and
efficient movement of freight. Many agricultural, energy, raw inputs,
and other natural resources to our manufacturing products originate in
rural areas, such as farm commodities, coal and other fuel inputs, and
raw materials. Approximately two-thirds of freight tonnage shipped by
rail in the U.S. originates in rural areas. Urban areas drive domestic
freight demand and depend on reliable deliveries from ports and
railroads by trucks via freight intermodal connectors to meet that
demand. To safely and efficiently deliver goods to consumers, freight
supply chains have become increasingly complex and shippers and BCOs
are reliant on the interplay between multiple transportation modes.
More than ever, transportation planning and infrastructure investment,
particularly for freight, must be considered within the broader systems
context that accounts for all modes and both public- and private-sector
actors to retain the United States' global competitive advantage.
    DOT recognizes the importance of engaging with the public and
private industry to develop a clear, national vision for freight
transportation that is inclusive of both public- and private-sector
perspectives. Through State Freight Plans, all fifty States and the
District of Columbia have contemplated the importance and impacts of
freight movement to their local and regional economy and have developed
infrastructure investment plans to improve freight flows across their
States. As daily users of the system, private sector and non-public
perspectives are vital inputs for understanding operational challenges
along the freight system.
    DOT seeks information directly from the public and stakeholders to
inform development of this national freight strategy. DOT seeks
comments and relevant information on any of the eleven statutorily
defined plan components (as noted above); in addition, DOT specifically
requests comments and data in response to the following questions:
    1. What are the three most important challenges facing the U.S.
freight transportation system?
    2. What should be long- and short-term national freight system
goals? How can States, local agencies, and private stakeholders most
effectively advance these national goals?

    3. How should DOT measure freight transportation system
performance? In your response, consider both safety and efficiency, as
well as performance thresholds across multimodal metrics (i.e., hours
of delay, infrastructure conditions, planning time index) that
represent untenable performance for the public or private sector.
Consider how performance metrics could be employed to inform DOT's
discretionary grant programs.
    4. What industry freight-specific knowledge is critical to
understanding supply chains and how economic trends impact freight
logistics and cargo movements? How can such data and/or knowledge be
procured or shared amongst public and private sector partners? Are
there technological innovations, such as Blockchain and the Internet of
Things (IoT), that DOT should know about?
    5. What should be considered regarding vital operational or
equipment innovations, emerging technology advances from research
communities, as well as infrastructure or facility concepts in freight
transportation?
    6. What approach should the federal government use to invest in the
multimodal freight system? How would this approach apply to each
transportation mode, for freight in general, for specific industries,
or for freight assets owned by the private sector (i.e., rail,
pipelines, maritime)? What are best practices for identifying projects
that involve both public and private sector assets and for encouraging
communication between the public and private sector to complete those
projects?
    7. What barriers (such as regulatory, technological, institutional,
statutory) are critical to freight efficiency that DOT should better
understand? Please consider which of these affect freight origination
and/or destination areas, as well as intermodal transfers, and describe
the root causes of the inefficiencies.
    8. What information is critical to understanding the unique
infrastructure and operational freight impacts faced by local
communities? Please detail any best practices in economic development
and planning processes that support freight intensive activity or
innovative financing. Describe current and prospective infrastructure
safety enhancements that should be considered.
    9. How would you define a bottleneck in your industry? (Consider
both surface and maritime transportation).
    10. What else should DOT consider (including the eleven statutory
criteria listed above) or do to improve freight transportation in the
U.S.?

Public Comment

    The DOT invites comments by all those interested in the draft
National Freight Strategic Plan. Comments on the draft NFSP may be
submitted and viewed at Docket Number DOT-OST-2019-0184. The web
address is: XXXXXX. Comments must be received on or before [45 days
from posting of this notice] to receive full consideration by DOT with
respect to the final NFSP. After [45 days from posting of this notice],
comments will continue to be available for viewing by the public.

    Dated: December 19, 2019.
Joel Szabat,
Acting Under Secretary Transportation for Policy.
[FR Doc. 2019-27897 Filed 12-26-19; 8:45 am]
BILLINGCODE 4910-9X-P


[Federal Register Volume 87, Number 203 (Friday, October 21, 2022)]
[Notices]
[Page 64030]
[FR Doc No: 2022-22919]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC23-7-000.
    Applicants: American Falls Solar, LLC, American Falls Solar II,
LLC, CSOLAR IV South, LLC, CSOLAR IV West, LLC, EG CSolar Holdco LLC,
EG NC II ID Holdco LLC.
    Description: Joint Application for Authorization Under Section 203
of the Federal Power Act of American Falls Solar, LLC, et al.
    Filed Date: 10/14/22.
    Accession Number: 20221014-5237.
    Comment Date: 5 p.m. ET 11/4/22.

    Docket Numbers: EC23-8-000.
    Applicants: Diversion Wind Energy LLC, Wagon Wheel Wind Project,
LLC, Southwestern Electric Power Company.
    Description: Joint Application for Authorization Under Section 203
of the Federal Power Act of Diversion Wind Energy LLC, et al.
    Filed Date: 10/14/22.
    Accession Number: 20221014-5239.
    Comment Date: 5 p.m. ET 11/4/22.

    Docket Numbers: EC23-9-000.
    Applicants: Roosevelt Wind Project, LLC, Milo Wind Project, LLC.
    Description: Joint Application for Authorization Under Section 203
of the Federal Power Act of Milo Wind Project, LLC, et al.
    Filed Date: 10/14/22.
    Accession Number: 20221014-5241.
    Comment Date: 5 p.m. ET 11/4/22.

    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG23-9-000.
    Applicants: FGE Goodnight I, LLC.
    Description: The FGE Goodnight I, LLC submits Notice of Self-
Certification of Exempt Wholesale Generator Status.
    Filed Date: 10/14/22.
    Accession Number: 20221014-5211.
    Comment Date: 5 p.m. ET 11/4/22.

    Docket Numbers: EG23-10-000.
    Applicants: AL Solar D, LLC.
    Description: AL Solar D, LLC submits Notice of Self-Certification
of Exempt Wholesale Generator Status.
    Filed Date: 10/17/22.
    Accession Number: 20221017-5062.
    Comment Date: 5 p.m. ET 11/7/22.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER22-2988-000.
    Applicants: DLS--Laskin Project Co, LLC, DLS--Sylvan Project Co,
LLC, DLS--Jean Duluth Project Co, LLC.
    Description: Request for Authorization to Undertake Affiliate Sales
of DLS--Laskin Project Co, LLC, et al.
    Filed Date: 9/30/22.
    Accession Number: 20220930-5467.
    Comment Date: 5 p.m. ET 10/21/22.

    Docket Numbers: ER23-111-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Amended ISA, Service
Agreement No. 6369; Queue No. AE2-029 to be effective 2/10/2022.
    Filed Date: 10/17/22.
    Accession Number: 20221017-5041.
    Comment Date: 5 p.m. ET 11/7/22.

    Docket Numbers: ER23-112-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Original Service Agreement
No. 6653; Queue No. AD2-031/AF1-159 to be effective 9/16/2022.
    Filed Date: 10/17/22.
    Accession Number: 20221017-5044.
    Comment Date: 5 p.m. ET 11/7/22.

    Docket Numbers: ER23-113-000.
    Applicants: AL Solar D, LLC.
    Description: Baseline eTariff Filing: AL Solar D, LLC MBR
Application Filing to be effective 10/18/2022.
    Filed Date: 10/17/22.
    Accession Number: 20221017-5060.
    Comment Date: 5 p.m. ET 11/7/22.

    Docket Numbers: ER23-115-000.
    Applicants: Tri-State Generation and Transmission Association, Inc.
    Description: Sec.  205(d) Rate Filing: Amendment to Rate Schedule
FERC No. 34 to be effective 12/16/2022.
    Filed Date: 10/17/22.
    Accession Number: 20221017-5076.
    Comment Date: 5 p.m. ET 11/7/22.

    Docket Numbers: ER23-116-000.
    Applicants: El Paso Electric Company.
    Description: Sec.  205(d) Rate Filing: OATT Revisions Filing of
Attachment M Related to Cluster Study Network Upgrades to be effective
10/19/2022.
    Filed Date: 10/17/22.
    Accession Number: 20221017-5085.
    Comment Date: 5 p.m. ET 11/7/22.

    Docket Numbers: ER23-117-000.
    Applicants: Duke Energy Progress, LLC.
    Description: Sec.  205(d) Rate Filing: DEP-Sumac Solar--ASOA SA No.
406 to be effective 10/1/2022.
    Filed Date: 10/17/22.
    Accession Number: 20221017-5116.
    Comment Date: 5 p.m. ET 11/7/22.

    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by querying
the docket number. Any person desiring to intervene or protest in any
of the above proceedings must file in accordance with Rules 211 and 214
of the Commission's Regulations (18 CFR 385.211 and 385.214) on or
before 5:00 p.m. Eastern time on the specified comment date. Protests
may be considered, but intervention is necessary to become a party to
the proceeding. eFiling is encouraged. More detailed information
relating to filing requirements, interventions, protests, service, and
qualifying facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call (866)
208-3676 (toll free). For TTY, call<PHONE_NUMBER>.

    Dated: October 17, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-22919 Filed 10-20-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 149 (Tuesday, August 4, 2015)]
[Notices]
[Pages 46266-46267]
[FR Doc No: 2015-19066]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP15-91-000]

East Tennessee Natural Gas, LLC; Supplemental Notice of Intent To
Prepare an Environmental Assessment for the Proposed Loudon Expansion
Project and Request for Comments on Environmental Issues

    On March 24, 2015, the Federal Energy Regulatory Commission (FERC
or Commission) issued in Docket No. CP15-91-000 a Notice of Intent to
Prepare an Environmental Assessment for the Proposed Loudon Expansion
Project and Request for Comments on Environmental Issues (NOI). In
response to scoping comments and data requested by FERC staff, East
Tennessee Natural Gas, LLC (East Tennessee) has developed Route G-1 as
its new proposed route for the above-referenced project in Monroe and
Loudon Counties, Tennessee. FERC staff is further evaluating
Alternative Route B as described in East Tennessee's February 20, 2015
filing, the Eastside Alternate Route as described in its May 8, 2015
filing, Alternate Route G as described in its July 10, 2015 filing, as
well as the originally proposed route (Route F). This Supplemental
Notice is being issued to seek comments on the new Proposed Route G-1
and the alternatives mentioned above, and opens a new scoping period
for interested parties to file comments on environmental issues
specific to these routes.
    The March 24, 2015 NOI announced that the FERC staff will prepare
an environmental assessment (EA) to address the environmental impacts
of the Loudon Expansion Project (Project). Please refer to the NOI for
more information about the overall facilities proposed by East
Tennessee in Tennessee, and FERC staff's EA process. The Commission
will use the EA in its decision-making process to determine whether the
Project is in the public convenience and necessity.
    We \1\ are now specifically seeking comments on the new Proposed
Route G-1, Alternate Route B, Alternate Route G, and the Eastside
Alternate Route to help the Commission staff evaluates all potential
environmental impacts. Please note that this supplemental scoping
period will close on August 27, 2015.
---------------------------------------------------------------------------

    \1\ ``We,'' ``us,'' and ``our'' refer to the environmental staff
of the Commission's Office of Energy Projects.
---------------------------------------------------------------------------

    This Supplemental Notice is being sent to the Commission's current
environmental mailing list for this Project, including landowners along
the originally proposed route (Route F) and new landowners that would
be affected by the new proposed route (Route G-1) or the alternate
routes (Alternate Routes B, G, and the Eastside Alternate Route).
    If you are a landowner receiving this notice, a pipeline company
representative may contact you about the acquisition of an easement to
construct, operate, and maintain the proposed facilities. The company
would seek to negotiate a mutually acceptable agreement. However, if
the Commission approves the Project, that approval conveys with it the
right of eminent domain. Therefore, if the easement negotiations fail
to produce an agreement, the pipeline company could initiate
condemnation proceedings where compensation would be determined in
accordance with state law.
    A fact sheet prepared by the FERC entitled ``An Interstate Natural
Gas Facility on My Land? What Do I Need To Know?'' is available for
viewing on the FERC Web site (www.ferc.gov). This fact sheet addresses
a number of typically asked questions, including the use of eminent
domain and how to participate in the Commission's proceedings.

Public Participation

    For your convenience, there are three methods you can use to submit
your comments to the Commission. The Commission will provide equal
consideration to all comments received, whether filed in written form
or provided verbally. The Commission encourages electronic filing of
comments and has expert staff available to assist you at<PHONE_NUMBER>
or<EMAIL_ADDRESS>Please carefully follow these instructions so that
your comments are properly recorded.
    (1) You can file your comments electronically using the eComment
feature located on the Commission's Web site (www.ferc.gov) under the
link to Documents and Filings. This is an easy method for interested
persons to submit brief, text-only comments on a project;
    (2) You can file your comments electronically using the eFiling
feature located on the Commission's Web site (www.ferc.gov) under the
link to Documents and Filings. With eFiling, you can provide comments
in a variety of formats by attaching them as a file with your
submission. New eFiling users must first create an account by clicking
on ``eRegister.'' You must select the type of filing you are making. If
you are filing a comment on a particular

project, please select ``Comment on a Filing;'' or
    (3) You can file a paper copy of your comments by mailing them to
the following address: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street NE., Room 1A, Washington, DC
20426.

Summary of the New Proposed Route G-1 and Alternate Routes B, G, and
Eastside

    Following original Route F until milepost (MP) 1.5, the new
Proposed Route G-1 would then turn east, cross under Tennessee State
Highway 72 and parallel it until MP 3.1 where it would meet and be
collated with East Tennessee's existing Loudon-Lenoir City Lateral
pipeline. Alternate Route G and the Eastside Alternate Route would
follow similar paths but each route would be located slightly farther
east, rejoining and paralleling the Loudon-Lenoir City Lateral pipeline
at approximately MP 3.5. All three of these routes would cross Tellico
Lake. Alternate Route B would start at the same location as all other
routes, but would then proceed west of those routes, avoiding Lake
Tellico completely, rejoining and paralleling the Loudon-Lenoir City
Lateral pipeline at approximately MP 5.4.
    Overview and aerial maps of the previously proposed route, newly
proposed route, and the three alternate routes are included in Appendix
1.\2\
---------------------------------------------------------------------------

    \2\ The appendices referenced in this notice are not being
printed in the Federal Register. Copies of appendices were sent to
all those receiving this notice in the mail and are available at
www.ferc.gov using the link called ``eLibrary'' or from the
Commission's Public Reference Room, 888 First Street NE.,
Washington, DC 20426, or call<PHONE_NUMBER>. For instructions on
connecting to eLibrary, refer to the last page of this notice.
---------------------------------------------------------------------------

Currently Identified Environmental Issues

    We have identified several issues that we think deserve attention
for our comparison of the new proposed route and three alternatives
based on a review of the proposed facilities and the environmental
information provided by East Tennessee. This preliminary list of issues
may be changed based on your comments and our analysis.
     Waterbodies;
     karst geology, including caves; and
     candidate and listed threatened or endangered species.

Environmental Mailing List

    The environmental mailing list includes federal, state, and local
government representatives and agencies; elected officials;
environmental and public interest groups; Native American Tribes; other
interested parties; commenters; and local libraries and newspapers.
This list also includes landowners affected by the pipelines as
currently proposed, as well as landowners that may be affected by the
Kemblesville Loop Alternative Route 2. We will update the environmental
mailing list as the analysis proceeds to ensure that we send the
information related to this environmental review to all individuals,
organizations, and government entities interested in and/or potentially
affected by the proposed Project.
    Copies of the completed EA will be sent to the environmental
mailing list for public review and comment. If you would prefer to
receive a paper copy of the document instead of a CD version or would
like to remove your name from the mailing list, please return the
attached Information Request (Appendix 2).

Becoming an Intervenor

    In addition to involvement in the EA scoping process, you may want
to become an ``intervenor'' which is an official party to the
Commission's proceeding. Intervenors play a more formal role in the
process and are able to file briefs, appear at hearings, and be heard
by the courts if they choose to appeal the Commission's final ruling.
An intervenor formally participates in the proceeding by filing a
request to intervene. Instructions for becoming an intervenor are in
the User's Guide under the ``e-filing'' link on the Commission's Web
site.

Additional Information

    Additional information about the Project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC Web site (www.ferc.gov) using the eLibrary link. Click on the
eLibrary link, click on ``General Search'' and enter the docket number,
excluding the last three digits in the Docket Number field (i.e., CP15-
91). Be sure you have selected an appropriate date range. For
assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to www.ferc.gov/docs-filing/esubscription.asp.

    Dated: July 28, 2015.
Kimberly D. Bose,
Secretary.
[FR Doc. 2015-19066 Filed 8-3-15; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 148 (Tuesday, August 2, 2011)]
[Notices]
[Page 46287]
[FR Doc No: 2011-19470]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER11-4111-000]

Hudson Ranch Power I LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Hudson Ranch Power I LLC's application for market-based rate authority,
with an accompanying rate tariff, noting that such application includes
a request for blanket authorization, under 18 CFR part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214). Anyone filing a motion to intervene or protest must serve a
copy of that document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is August 15, 2011.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed docket(s). For assistance with
any FERC Online service, please e-mail<EMAIL_ADDRESS>or
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

    Dated: July 26, 2011.
Nathaniel J. Davis, Sr.,
 Deputy Secretary.
[FR Doc. 2011-19470 Filed 8-1-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 86, Number 132 (Wednesday, July 14, 2021)]
[Notices]
[Pages 37197-37200]
[FR Doc No: 2021-14901]

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

[Release No. 34-92354; File No. SR-CBOE-2021-020]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, To Adopt Rule
6.10 To Introduce a Voluntary Multilateral Compression Service for SPX
Options

July 8, 2021.

I. Introduction

    On March 24, 2021, Cboe Exchange, Inc. (``Exchange'' or ``Cboe'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
adopt new Cboe Rule 6.10 to introduce a voluntary compression service
for market makers. The proposed rule change was published for comment
in the Federal Register on April 12, 2021.\3\ On May 25, 2021, the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\4\ On July 7, 2021, the Exchange filed Amendment No. 1 to the
proposed rule change, which replaced and superseded the proposed rule
change in its entirety.\5\ The Commission is publishing this notice to
solicit comments on the Exchange's proposal, as modified by Amendment
No. 1, from interested persons and is approving the Exchange's
proposal, as

modified by Amendment No. 1, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 91482 (April 6,
2021), 86 FR 19067. Comments on the proposed rule change can be
found on the Commission's website at: https://www.sec.gov/comments/sr-cboe-2021-020/srcboe2021020.htm.
    \4\ See Securities Exchange Act Release No. 92011, 86 FR 29334
(June 1, 2021). The Commission designated July 11, 2021, as the date
by which it should approve, disapprove, or institute proceedings to
determine whether to disapprove the proposed rule change.
    \5\ In Amendment No. 1, the Exchange: (1) Narrowed the list of
index options that could be compressed to include only SPX options
and limited the compression service to closing positions only, (2)
expanded eligibility from only market makers to all TPHs, (3) added
detail to the participation requirements to ensure that the proposed
compression service is limited to legitimate compression purposes,
(4) added further detail regarding the proposed compression service,
and (5) added additional justification for the proposed rule change.
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change, as Modified by Amendment
No. 1

    The Exchange proposes to adopt new Cboe Rule 6.10 to provide
Trading Permit Holders (``TPHs'') with an additional voluntary
compression tool that they can use to reduce required capital
attributable to their S&P 500 Index (``SPX'') options holdings.\6\ The
Exchange's proposal is designed to address the impact on liquidity
providers of the limited amount of capital available from clearing
broker-dealers that is a consequence of, among other things, the fact
that a number of clearing TPHs are now subsidiaries of U.S. bank
holding companies that must, as a result of this affiliation, comply
with additional bank capital regulatory requirements. In particular,
bank capital rules do not currently permit deductions for hedged
securities or offsetting options positions to the same extent that the
federal securities laws and self-regulatory organization rules do for
securities. The impact of this dynamic most acutely impacts SPX options
due to the popularity of SPX options and the significant number of open
index options positions combined with their large notional value.
---------------------------------------------------------------------------

    \6\ Currently, the Exchange offers other methods by which TPHs
can compress certain types of options holdings, including (1) Cboe
Rule 5.6, which allows for compression orders in SPX options and (2)
Cboe Rule 6.8, which allows TPHs to transfer positions off-exchange
if the transfer does not result in a change of ownership and reduced
the risk-weighted assets associated with those positions.
---------------------------------------------------------------------------

    In its filing, the Exchange explains that it has observed that
these bank capital rules have caused clearing broker-dealers to impose
stricter position limits on their clearing members, which can impact
the liquidity that TPHs, notably market makers who are frequently the
counterparties to a significant portion of SPX option trades, might be
able to supply.\7\ This impact would be most pronounced when markets
are volatile, precisely at the time when the market would benefit from
increased liquidity provision.
---------------------------------------------------------------------------

    \7\ See Amendment No. 1, at 8-10.
---------------------------------------------------------------------------

    The bank regulatory agencies have approved replacing the Current
Exposure Method (``CEM'') with the Standardized Approach to
Counterparty Credit Risk (``SA-CCR'') in the near future, and the
Exchange believes SA-CCR will be ``less punitive'' to clearing broker-
dealers because SA-CCR ``will help correct many of CEM's flaws by
incorporating risk-sensitive principles, such as delta weighting
options positions and more beneficial netting of derivative contracts
that have economically meaningful relationships.'' \8\ Nevertheless,
the Exchange believes that SA-CCR ``will not eliminate [TPHs'] need for
compression'' as the ability to compress SPX positions can ``enable
them to provide more meaningful liquidity to the market, particularly
during times of volatility when the market needs this liquidity most.''
\9\ The Exchange further asserts that ``this additional liquidity may
result in tighter spreads and more execution opportunities, which
benefits all investors.'' \10\
---------------------------------------------------------------------------

    \8\ See id. at 10.
    \9\ See id. at 11.
    \10\ See id.
---------------------------------------------------------------------------

    As described more fully in the Notice, as modified by Amendment No.
1, in order to be able to participate in the new multilateral
compression service, a TPH must request access to the service and
complete a standard test to demonstrate its capacity to participate.
While the Exchange initially proposed that only registered market
makers would be eligible to participate and a larger number of index
options would be eligible for inclusion, the Exchange has modified its
proposal to allow any TPH to request access and to limit the service to
SPX options only, where the need for compression is most present.\11\
---------------------------------------------------------------------------

    \11\ See generally Amendment No. 1.
---------------------------------------------------------------------------

    The Exchange will offer multilateral compression periodically,
initially twice per month, in order to allow TPHs to respond to intra-
month reviews of regulatory capital for their positions by their
clearing broker-dealers.\12\ To participate, a TPH must submit a
``position list'' after the close of trading on the specified day that
details all of the open SPX positions it would like to close out and
compress. The list must specify the amount of capital reduction
associated with each closing position, the theoretical value of each
position, the maximum cost the TPH is willing to accept to compress all
of the positions (in the aggregate), the maximum cost per unit of
capital reduction the TPH is willing to accept, and at least one risk
constraint of the TPH's choosing including a minimum and maximum value.
TPHs have flexibility in choosing these values as specified in the
proposed rule.\13\
---------------------------------------------------------------------------

    \12\ See Amendment No. 1, at 17.
    \13\ See, e.g., proposed Cboe Rule 6.10(b)(2) (concerning a
theoretical value ``calculated in a manner of the compression
participant's choosing'').
---------------------------------------------------------------------------

    After the deadline for submission of the position lists, the
Exchange runs an automated process to match offsetting positions in an
anonymized manner. The process identifies the outcome that would result
in the maximum aggregate capital reduction among all participating TPHs
(picking at random from among equal outcomes). The Exchange determines
the compression price for each option, which will be ``as close as
possible to the midpoint of the [national best bid and offer] at the
close of the trading day or the daily marking time, subject to
adjustment using generally accepted volatility and options pricing
models in the event of wide markets, market volatility, or other
unusual circumstances.'' \14\
---------------------------------------------------------------------------

    \14\ Proposed Cboe Rule 6.10(c)(2).
---------------------------------------------------------------------------

    The Exchange then notifies the TPH participants of each TPH's
individual compression proposal.\15\ Each TPH with at least one
offsetting position must notify the Exchange whether it accepts its
individual proposal.\16\ If all compression participants accept their
individual proposals, then the Exchange effects the transactions at the
specified prices off the exchange.\17\ If one compression participant
declines, then no compression transactions are effected.\18\
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    \15\ See id.
    \16\ See proposed Cboe Rule 6.10(d).
    \17\ See id. In Amendment No. 1, the Exchange represented that
it will disseminate compression transaction information to OPRA. The
Exchange further states that it has completed system work to apply
an indicator to such information and is working with OPRA so that
OPRA is able to incorporate that indicator. The Exchange expects
OPRA to complete its work in 2021, but notes that the indicator may
not be available upon implementation of the compression service. See
Amendment No. 1, at 27.
    \18\ See id.
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III. Discussion and Commission Findings

    After careful review of the proposal and the comments received, all
of which supported the proposal and recommended that the Commission
approve it, the Commission finds that the proposed rule change, as
modified by Amendment No. 1, is consistent with the Act and the rules
and regulations thereunder applicable to a national securities
exchange.\19\ In particular, the Commission finds that the proposed
rule change, as modified by Amendment No. 1, is consistent with Section
6(b)(5) of the Act,\20\ which requires, among other things, that the
rules of a national securities exchange be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, 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.
---------------------------------------------------------------------------

    \19\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In support of its proposal, the Exchange states that compression
transactions under Cboe Rule 6.10 will have a narrow scope and are
intended and designed to achieve the limited purpose of capital
reduction.\21\ The Exchange further explains that it understands that
TPHs have no need for price discovery or price improvement for
compression transactions, because the purpose of the transfer is to
reduce capital requirements attributable to the TPHs' positions and the
price of the compression transaction is a secondary concern.\22\ The
Exchange further states that its proposal is needed because liquidity
providers accumulate SPX positions to accommodate executions of
customer orders, and do so at increasing levels during times of market
volatility.\23\ While TPHs hold these positions prior to expiration,
many may have little to no value and closure of these positions may
have little impact on the risk exposure of the TPH's portfolio.\24\
Yet, maintenance of these positions requires ongoing risk management
and capital, which can impact the capital the TPHs have available to
trade.\25\ The Exchange asserts that its proposal will limit the use of
the compression service to legitimate compression purposes and provide
an objective process to allow TPHs to manage capital and margin
requirements so that they have sufficient capital available to provide
to the markets, which will benefit all market participants.\26\
---------------------------------------------------------------------------

    \21\ See Amendment No. 1, at 37.
    \22\ See id.
    \23\ See id. at 38.
    \24\ See id.
    \25\ See id.
    \26\ See id. at 41. Two commenters supported the proposed rule
change, asserting that the proposed compression service procedure
would provide an additional risk management tool that can be used by
Cboe market makers to efficiently manage the capital and margin
requirements of their portfolios. See Letters to Vanessa Countryman,
Secretary, Commission, from Joanna Mallers, Secretary, FIA Principal
Traders Group, dated May 3, 2021, at 2; and Michael Golding, Head of
Trading, Optiver US LLC and Aldo van Audenaerde, Head of Trading,
AMS Derivatives B.V., dated April 22, 2021, at 1.
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposal will provide a
narrowly-tailored, objective, and not unfairly discriminatory mechanism
for TPHs to efficiently compress open SPX positions for the purpose of
reducing required capital. As the Commission has previously observed,
the affiliation of clearing brokers with bank holding companies has
introduced the need for liquidity providers and their clearing firms to
more conservatively manage holdings to comply with applicable bank
regulatory capital requirements.\27\ The ability to compress positions
in an efficient, cost-effective manner can help liquidity providers and
their clearing firms manage associated bank capital constraints.
Tailored compression tools that are carefully designed to directly
address the greatest need for compression, where portfolio holdings
have a material impact on available capital, can have beneficial
effects on the market and available liquidity especially during periods
of volatile trading without impacting trading or conferring any
inappropriate benefits on any market participant.
---------------------------------------------------------------------------

    \27\ See, e.g., Securities Exchange Act Release No. 91079
(October 14, 2020), 85 FR 66590 (October 20, 2020) (order granting
approval of proposed rule change to adopt position compression cross
orders in SPX options).
---------------------------------------------------------------------------

    The proposal's focus on closing positions in SPX options
appropriately recognizes the role SPX options play as major component
of the capital impact felt by clearing broker-dealers and the TPHs for
whom they clear, which results from the large notional value and
popularity of SPX options as a frequently traded product with large
open interest. Compression trades are unlike arm's length transactions
as their sole purpose is to close open positions to compress SPX
portfolio positions to reduce required capital charges. The Exchange's
proposal is a narrowly-tailored means of doing so and, as a result,
should facilitate the ability of compression participants to provide
liquidity and trade, especially during volatile periods. As such, the
Exchange's proposal 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.
    Further, the mechanics of the compression service are reasonably
designed to provide an objective process by which TPHs can avail
themselves of the ability to potentially compress their open SPX
positions for capital reduction purposes. The proposed process does not
prioritize any TPH but rather aims to find the greatest aggregate
capital reduction among the SPX options submitted for consideration,
and honors each TPH's customized risk constraints in doing so.
Ultimately, however, all TPHs selected for participation must approve
of the compression transaction proposed by the Exchange and if any one
TPH declines the proposed transaction then the compression transaction
for all TPHs will not occur. If approved, transactions take place after
the close of regular trading hours and the trades will be reported to
OPRA with an indicator attached to note they are compression
trades,\28\ thus providing public transparency of these compression
trades.
---------------------------------------------------------------------------

    \28\ See supra note 17.
---------------------------------------------------------------------------

    Accordingly, for the reasons discussed above, the Commission finds
that the proposed rule change, as modified by Amendment No. 1, is
consistent with the Act, including Section 6(b)(5) of the Act \29\ and
the rules and regulations thereunder applicable to a national
securities exchange.
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    \29\ 15 U.S.C. 78f(b)(5).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 1, is consistent with the Act.
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2021-020 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-2021-020. 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-2021-020, and should be submitted on or before August 4, 2021.

V. Accelerated Approval of Proposed Rule Change, as Modified by
Amendment No. 1

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 1, prior to the 30th day after the
date of publication of notice of the filing of Amendment No. 1 in the
Federal Register. Amendment No. 1 narrowed the scope of parts of the
proposed rule change and also provided additional rationale and support
for the proposed rule change. Specifically, in Amendment No. 1, the
Exchange: (1) Narrowed the list of index options that could be
compressed to include only SPX options and limited the compression
service to closing positions only, (2) expanded eligibility from only
market makers to all TPHs, (3) added detail to the participation
requirements to ensure that the proposed compression service is limited
to legitimate compression purposes, (4) added further detail regarding
the proposed compression service, and (5) added additional
justification for the proposed rule change.
    The changes to the proposal and additional information provided in
Amendment No. 1 focus the proposal on SPX and closing-only positions,
expand eligibility to the compression service, and add necessary detail
to the rule text to more fully and clearly reflect the applicable
requirements and describe how the compression service will operate.
Collectively, these changes, supported by the additional and clarified
rationale, better calibrate the proposal to the greatest need for
compression and remove potential ambiguity about how the service will
work without introducing material new concepts over the original
proposal. The changes in Amendment No. 1 assist the Commission in
evaluating the Exchange's proposal and in determining that it is
consistent with the Act. Accordingly, the Commission finds good cause,
pursuant to Section 19(b)(2) of the Act,\30\ to approve the proposed
rule change, as modified by Amendment No. 1, on an accelerated basis.
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    \30\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\31\ that the proposed rule change (SR-CBOE-2021-020), as modified
by Amendment No. 1, be, and hereby is, approved on an accelerated
basis.
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    \31\ Id.
    \32\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-14901 Filed 7-13-21; 8:45 am]
BILLING CODE 8011-01-P