[Federal Register Volume 80, Number 104 (Monday, June 1, 2015)]
[Notices]
[Pages 31028-31029]
[FR Doc No: 2015-13075]

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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: EC15-144-000.
    Applicants: Rising Tree Wind Farm III LLC, Arbuckle Mountain Wind
Farm LLC.
    Description: Application for Authorization for Disposition of
Jurisdictional Facilities and Request for Expedited Action of Rising
Tree Wind Farm III LLC, et. al.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5190.
    Comments Due: 5 p.m. ET 6/11/15.

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

    Docket Numbers: EG15-89-000.
    Applicants: Greenleaf Power Management LLC.
    Description: Self-Certification as an EWG of Greenleaf Power
Management LLC.
    Filed Date: 5/20/15.
    Accession Number: 20150520-5219.
    Comments Due: 5 p.m. ET 6/10/15.

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

    Docket Numbers: ER13-1940-004.
    Applicants: Ohio Valley Electric Corporation.
    Description: Compliance filing per 35: Interregional Refile to be
effective 1/1/2015.

    Filed Date: 5/20/15.
    Accession Number: 20150520-5213.
    Comments Due: 5 p.m. ET 6/8/15.

    Docket Numbers: ER15-1016-000.
    Applicants: Shafter Solar, LLC.
    Description: Second Amendment to February 9, 2015 and March 24,
2015 Shafter Solar, LLC tariff filings.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5095.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1222-001.
    Applicants: Southern California Edison Company.
    Description: Tariff Amendment per 35.17(b): SCE's Response to
Deficiency re Unexecuted Edom Hills GIA & Distrib Serv Agmt to be
effective 9/30/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5111.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1375-000.
    Applicants: McCoy Solar, LLC.
    Description: Amendment to March 25, 2015 McCoy Solar, LLC tariff
filing.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5103.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1392-001.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Tariff Amendment per 35.17(b): 2015-05-21_Montezuma-
Tipton Att O Amendment to be effective 6/1/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5124.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1418-000.
    Applicants: Adelanto Solar II, LLC.
    Description: Amendment to March 31, 2015 Adelanto Solar II, LLC
tariff filing.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5150.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1665-000.
    Applicants: Greenleaf Power Management LLC.
    Description: Supplement to May 4, 2015 Greenleaf Power Management
LLC tariff filing.
    Filed Date: 5/20/15.
    Accession Number: 20150520-5266.
    Comments Due: 5 p.m. ET 6/10/15.

    Docket Numbers: ER15-1757-000.
    Applicants: New York Independent System Operator, Inc.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): NYISO
205 filing Executed Non-Conforming Interconnection Facilities Study
Agrmnt to be effective 4/23/2015.
    Filed Date: 5/20/15.
    Accession Number: 20150520-5214.
    Comments Due: 5 p.m. ET 6/10/15.

    Docket Numbers: ER15-1758-000.
    Applicants: Southern California Edison Company.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): Filing
of LGIA for RE Garland Project to be effective 5/21/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5001.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1759-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): 2015-
05-21_SA 2789 ATC-ITC Midwest Operating Agreement to be effective 7/21/
2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5082.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1760-000.
    Applicants: Southwestern Public Service Company.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): 2015-5-
21_SPS-RWSE-E&P-680-0.0.0-Filing to be effective 7/20/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5096.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1761-000.
    Applicants: Southwestern Public Service Company.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): 2015-5-
21_SPS-ChvCtySlr-E&P-681-0.0.0-Filing to be effective 7/20/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5101.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1762-000.
    Applicants: Southwestern Public Service Company.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): 2015-5-
21_SPS-OrWR-E&P-682-0.0.0-Filing to be effective 7/20/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5105.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1763-000.
    Applicants: El Paso Electric Company.
    Description: Notice of Cancellation of Rate Schedule 53 of El Paso
Electric Company.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5108.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1764-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): 2015-
05-21_SA 2789 Notice of Termination ATC-ITCM Operating Agreement to be
effective 7/21/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5133.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1765-000.
    Applicants: California Independent System Operator Corporation.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): 2015-
05-21 APS ABAOA and Termination of RS 17 to be effective 5/22/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5135.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1765-001.
    Applicants: California Independent System Operator Corporation.
    Description: Tariff Amendment per 35.17(b): 2015-05-21 Amended APS
ABAOA to be effective 7/23/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5147.
    Comments Due: 5 p.m. ET 6/11/15.

    Docket Numbers: ER15-1766-000.
    Applicants: PJM Interconnection, L.L.C., The Dayton Power and Light
Company.
    Description: Sec.  205(d) rate filing per 35.13(a)(2)(iii): DP&L
submits Original Service Agreement No. 4124 to be effective 5/22/2015.
    Filed Date: 5/21/15.
    Accession Number: 20150521-5176.
    Comments Due: 5 p.m. ET 6/11/15.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or 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<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: May 21, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-13075 Filed 5-29-15; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 87, Number 170 (Friday, September 2, 2022)]
[Notices]
[Page 54228]
[FR Doc No: 2022-19034]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4599-DR; Docket ID FEMA-2022-0001]

Oregon; Amendment No. 4 to Notice of a Major Disaster Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Oregon (FEMA-4599-DR), dated May 4, 2021, and related
determinations.

DATES: This change occurred on July 29, 2022.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) hereby gives notice that pursuant to the authority vested in the
Administrator, under Executive Order 12148, as amended, Toney L.
Raines, of FEMA is appointed to act as the Federal Coordinating Officer
for this disaster.
    This action terminates the appointment of Lance E. Davis as Federal
Coordinating Officer for this disaster.

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

Deanne Criswell,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2022-19034 Filed 9-1-22; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)]
[Notices]
[Pages 60541-60545]
[FR Doc No: 2018-25606]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84626; File No. SR-OCC-2018-804]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Advance Notice, as Modified by Partial Amendment
No. 1, Related to The Options Clearing Corporation's Margin Methodology
for Incorporating Variations in Implied Volatility

November 19, 2018.
    Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, entitled Payment, Clearing
and Settlement Supervision Act of 2010 (``Clearing Supervision Act'')
\1\ and Rule 19b-4(n)(1)(i) \2\ under the Securities Exchange Act of
1934 (``Exchange Act'' or ``Act''),\3\ notice is hereby given that on
October 22, 2018, The Options Clearing Corporation (``OCC'') filed with
the Securities and Exchange Commission (``Commission'') an advance
notice as described in Items I, II and III below, which Items have been
prepared by OCC. On October 30, 2018, OCC filed Partial Amendment No. 1
to the advance notice.\4\ The Commission is publishing this notice to
solicit comments on the advance notice from interested persons.
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    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ 15 U.S.C. 78a et seq.
    \4\ In Partial Amendment No. 1, OCC corrected an error in
Exhibit 5 without changing the substance of the advance notice.
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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    This advance notice is filed in connection with proposed changes to
enhance OCC's model for incorporating variations in implied volatility
within OCC's margin methodology (``Implied Volatility Model''), the
System for Theoretical Analysis and Numerical Simulations
(``STANS'').\5\ The proposed changes to OCC's Margins Methodology
document are contained in confidential Exhibit 5 of the filing.
Material proposed to be added is marked by underlining and material
proposed to be deleted is marked by strikethrough text. The proposed
changes are described in detail in Item 10 below. The proposed changes
do not require any changes to the text of OCC's By-Laws or Rules. The
advance notice is available on OCC's website at https://www.theocc.com/about/publications/bylaws.jsp. All terms with initial capitalization
that are not otherwise defined herein have the same meaning as set
forth in the OCC By-Laws and Rules.\6\
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    \5\ OCC also has filed a proposed rule change with the
Commission in connection with the proposed changes. See SR-OCC-2018-
014.
    \6\ OCC's By-Laws and Rules can be found on OCC's public
website: http://optionsclearing.com/about/publications/bylaws.jsp.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

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

(A) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants or Others

    Written comments were not and are not intended to be solicited with
respect to the proposed rule change and none have been received. OCC
will notify the Commission of any written comments received by OCC.

(B) Advance Notices Filed Pursuant to Section 806(e) of the Payment,
Clearing, and Settlement Supervision Act

Description of the Proposed Change
Background
STANS Overview
    STANS is OCC's proprietary risk management system for calculating
Clearing Member margin requirements.\7\ The STANS methodology utilizes
large-scale Monte Carlo simulations to forecast price and volatility
movements in determining a Clearing Member's margin requirement.\8\
STANS margin requirements are calculated at the portfolio level of
Clearing Member accounts with positions in marginable securities and
consists of an estimate of two primary components: A base component and
a stress test add-on component. The base component is an estimate of a
99% expected shortfall \9\ over a two-day time horizon. The
concentration/dependence stress test charge is obtained by considering
increases in the expected margin shortfall for an account that would
occur due to (i) market movements that are especially large and/or in
which certain risk factors would exhibit perfect or zero correlations
rather than correlations otherwise estimated using historical data or
(ii) extreme and adverse idiosyncratic movements for individual risk
factors to which the account is particularly exposed. The STANS
methodology is used to measure the exposure of portfolios of options
and futures cleared by OCC and cash instruments in margin
collateral.\10\
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    \7\ See Securities Exchange Act Release No. 53322 (February 15,
2006), 71 FR 9403 (February 23, 2006) (SR-OCC-2004-20). A detailed
description of the STANS methodology is available at http://optionsclearing.com/risk-management/margins/.
    \8\ See OCC Rule 601.
    \9\ The expected shortfall component is established as the
estimated average of potential losses higher than the 99% value at
risk threshold. The term ``value at risk'' or ``VaR'' refers to a
statistical technique that, generally speaking, is used in risk
management to measure the potential risk of loss for a given set of
assets over a particular time horizon.
    \10\ OCC notes that, pursuant to OCC Rule 601(e)(1), OCC also
calculates initial margin requirements for segregated futures
accounts using the Standard Portfolio Analysis of Risk Margin
Calculation System (``SPAN''). No changes are proposed to OCC's use
of SPAN because the proposed changes do not concern futures. See
Securities Exchange Act Release No. 72331 (June 5, 2014), 79 FR
33607 (June 11, 2014) (SR-OCC-2014-13).
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    The econometric models underlying STANS currently incorporate a
number of risk factors. A ``risk factor'' within OCC's margin system is
defined as a product or attribute whose historical data is used to
estimate and simulate the risk for an associated product. The majority
of risk factors utilized in the STANS methodology are the returns on
individual equity securities; however, a number of other risk factors
may be considered, including, among other things, returns on implied
volatility risk factors.\11\
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    \11\ In December 2015, the Commission approved a proposed rule
change and issued a Notice of No Objection to an advance notice
filing by OCC to its modify margin methodology by more broadly
incorporating variations in implied volatility within STANS. See
Securities Exchange Act Release No. 76781 (December 28, 2015), 81 FR
135 (January 4, 2016) (SR-OCC-2015-016) and Securities Exchange Act
Release No. 76548 (December 3, 2015), 80 FR 76602 (December 9, 2015)
(SR-OCC-2015-804). As discussed further below, implied volatility
risk factors in STANS are a set of chosen volatility pivot points
per product, depending on the tenor of the option.
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Current Implied Volatility Model in STANS
    Generally speaking, the implied volatility of an option is a
measure of the expected future volatility of the option's underlying
security at expiration, which is reflected in the current option
premium in the market. Using the Black-Scholes options pricing model,
the implied volatility is the standard deviation of the underlying
asset price necessary to arrive at the market price of an option of a
given strike, time to maturity, underlying asset price and the current
risk-free rate. In effect, the implied volatility is

responsible for that portion of the premium that cannot be explained by
the then-current intrinsic value of the option (i.e., the difference
between the price of the underlying and the exercise price of the
option), discounted to reflect its time value. OCC considers variations
in implied volatility within STANS to ensure that the anticipated cost
of liquidating options positions in an account recognizes the
possibility that implied volatility could change during the two-
business day liquidation time horizon and lead to corresponding changes
in the market prices of the options.
    OCC models the variations in implied volatility used to re-price
options within STANS for substantially all option contracts \12\
available to be cleared by OCC that have a residual tenor \13\ of less
than three years (``Shorter Tenor Options'').\14\ To address variations
in implied volatility, OCC models a volatility surface \15\ for Shorter
Tenor Options by incorporating into the econometric models underlying
STANS certain risk factors (i.e., implied volatility pivot points)
based on a range of tenors and option deltas.\16\ Currently, these
implied volatility pivot points consist of three tenors of one month,
three months and one year, and three deltas of 0.25, 0.5, and 0.75,
resulting in nine implied volatility risk factors. These pivot points
are chosen such that their combination allows the model to capture
changes in level, skew, convexity and term structure of the implied
volatility surface. OCC uses a GARCH model \17\ to forecast the
volatility for each implied volatility risk factor at the nine pivot
points.\18\ For each Shorter Tenor Option in the account of a Clearing
Member, changes in its implied volatility are simulated using forecasts
obtained from daily implied volatility market data according to the
corresponding pivot point and the price of the option is computed to
determine the amount of profit or loss in the account under the
particular STANS price simulation. Additionally, OCC uses simulated
closing prices for the assets underlying the options in the account of
a Clearing Member that are scheduled to expire within the liquidation
time horizon of two business days to compute the options' intrinsic
value and uses those values to help calculate the profit or loss in the
account.\19\
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    \12\ OCC's Implied Volatility Model excludes: (i) Binary
options, (ii) options on commodity futures, (iii) options on U.S.
Treasury securities, and (iv) Asians and Cliquets. These relatively
new products were introduced as the implied volatility margin
methodology changes were in the process of being completed by OCC,
and OCC had de minimus open interest in those options. OCC therefore
did not believe there was a substantive risk if those products were
excluded from the implied volatility model. See id.
    \13\ The ``tenor'' of an option is the amount of time remaining
to its expiration.
    \14\ OCC also incorporates variations in implied volatility as
risk factors for certain options with residual tenors of at least
three years (``Longer Tenor Options''); however, the proposed
changes described herein would not apply to OCC's model for Longer
Tenor Options. See Securities Exchange Act Release Nos. 68434
(December 14, 2012), 77 FR 57602 (December 19, 2012) (SR-OCC-2012-
14); 70709 (October 18, 2013), 78 FR 63267 (October 23, 2013) (SR-
OCC-2013-16).
    \15\ The term ``volatility surface'' refers to a three-
dimensional graphed surface that represents the implied volatility
for possible tenors of the option and the implied volatility of the
option over those tenors for the possible levels of ``moneyness'' of
the option. The term ``moneyness'' refers to the relationship
between the current market price of the underlying interest and the
exercise price.
    \16\ The ``delta'' of an option represents the sensitivity of
the option price with respect to the price of the underlying
security.
    \17\ The acronym ``GARCH'' refers to an econometric model that
can be used to estimate volatility based on historical data. See
generally Tim Bollerslev, ``Generalized Autoregressive Conditional
Heteroskedasticity,'' Journal of Econometrics, 31(3), 307-327
(1986).
    \18\ STANS relies on 10,000 price simulation scenarios that are
based generally on a historical data period of 500 business days,
which are updated daily to keep model results from becoming stale.
    \19\ For such Shorter Tenor Options that are scheduled to expire
on the open of the market rather than the close, OCC uses the
relevant opening price for the underlying assets.
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    OCC performed a number of analyses of its current Implied
Volatility Model and to support development of the proposed model
changes, including backtesting and impact analysis of the proposed
model enhancements as well as comparison of OCC's current model
performance against certain industry benchmarks.\20\ OCC's analysis
demonstrated that one attribute of the current model is that the
volatility changes forecasted by the GARCH model are extremely
sensitive to sudden spikes in volatility, which can at times result in
over reactive margin requirements that OCC believes are unreasonable
and procyclical.\21\
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    \20\ OCC has provided results of these analyses to the
Commission in confidential Exhibit 3 of the filing.
    \21\ A quality that is positively correlated with the overall
state of the market is deemed to be ``procyclical.'' For example,
procyclicality may be evidenced by increasing margin requirements in
times of stressed market conditions and low margin requirements when
markets are calm. Hence, anti-procyclical features in a model are
measures intended to prevent risk-based models from fluctuating too
drastically in response to changing market conditions.
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    For example, on February 5, 2018, the market experienced extreme
levels of volatility, with the Cboe Volatility Index (``VIX'') \22\
moving from 17% up to 37%, representing a relative move of 116% (which
is the largest relative daily jump in the history of the index). Under
OCC's current model, OCC observed that the GARCH forecast SPX
volatility for at-the-money implied volatility for a one-month tenor
was approximately 4 times larger than the comparable market index, the
Cboe VVIX Index, which is a volatility of volatility measure in that it
represents the expected volatility of the 30-day forward price of the
VIX. As a result, aggregated STANS margins jumped more than 80%
overnight due to the GARCH model and margins for certain individual
Clearing Members increased by a factor of 10.\23\
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    \22\ The VIX is an index designed to measure the 30-day expected
volatility of the Standard & Poor's 500 index (``SPX'').
    \23\ For example, under the current model the total margin
requirement calculated for one particular Clearing Member jumped
from $120 million on February 2, 2018, to $1.78 billion on February
5, 2018, representing a 14 times increase in the requirement.
---------------------------------------------------------------------------

    In addition, volatility tends to be mean reverting; that is,
volatility will quickly return to its long-run mean or average from an
elevated level, so it is unlikely that volatility would continue to
make big jumps immediately following a drastic increase. For example,
based on the VIX history from 1990-2018, VIX levels jumped above 35
(about the level observed on February 5, 2018) for approximately 293
days (i.e., 4% of the sample period). From the level of 35 or higher,
the range of daily change on the VIX index was between 27% and -35%.
However, the largest daily changes on one-month at-the-money SPX
implied volatility forecasted by OCC's current GARCH model on February
5, 2018, were far in excess of those historical realized amounts, which
points to extreme procyclicality issues that need to be addressed in
the current model.\24\
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    \24\ For example, OCC's current model resulted in a maximum
variation of 1100% in the one-month at-the-money SPX implied
volatility pivot when compared with a maximum 35% move in the VIX
for VIX levels greater than 30. Additionally, the model-generated
number is significantly higher than 116%, which is the largest
realized historical move in the VIX that occurred on February 5,
2018.
---------------------------------------------------------------------------

    OCC also performed backtesting of the current model and proposed
model enhancements to evaluate and compare the performance of each
model from a margin coverage perspective. OCC's backtesting
demonstrated that exceedance counts \25\ and overall coverage levels
over the backtesting period using the proposed model enhancements were
substantially similar to the results obtained from the current
production model. As a result, OCC believes the current model tends to

be overly conservative/reactive, and the proposed model is more
appropriately commensurate with the risks presented by changes in
implied volatility.
---------------------------------------------------------------------------

    \25\ Exceedance counts here refer to instances where the actual
loss on portfolio over the liquidation period of two business days
exceeds the margin amounts generated by the model.
---------------------------------------------------------------------------

    OCC believes that the sudden, extreme and unreasonable increases in
margin requirements that may be experienced under its current Implied
Volatility Model may stress certain Clearing Members' ability to obtain
sufficient liquidity to meet these significantly increased margin
requirements, particularly in periods of sudden, extreme volatility.
OCC therefore is proposing changes to its Implied Volatility Model to
limit procyclicality and produce margin requirements that OCC believes
are more reasonable and are also commensurate with the risks presented
by its cleared options products.
Proposed Changes
    OCC proposes to modify its Implied Volatility Model by introducing
an exponentially weighted moving average \26\ for the daily forecasted
volatility for implied volatility risk factors calculated using the
GARCH model. Specifically, when forecasting the volatility for each
implied volatility risk factor at each of the nine pivot points, OCC
would use an exponentially weighted moving average of forecasted
volatilities over a specified look-back period rather than using raw
daily forecasted volatilities. The exponentially weighted moving
average would involve the selection of a look-back period over which
the data would be averaged and a decay factor (or weighting factor),
which is a positive number between zero and one, that represents the
weighting factor for the most recent data point.\27\ The look-back
period and decay factor would be model parameters subject to monthly
review,\28\ along with other model parameters that are reviewed by
OCC's Model Risk Working Group (``MRWG'') \29\ in accordance with OCC's
internal procedure for margin model parameter review and sensitivity
analysis, and these parameters would be subject to change upon approval
of the MRWG.
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    \26\ An exponentially weighted moving average is a statistical
method that averages data in a way that gives more weight to the
most recent observations using an exponential scheme.
    \27\ The lower the number the more weight is attributed to the
more recent data (e.g., if the value is set to one, the
exponentially weighted moving average becomes a simple average).
    \28\ OCC initially would use a look-back period of 22 days and
an initial decay factor of 0.94 for the exponentially weighted
moving average. OCC believes the 22-day look-back is an appropriate
initial parameter setting as it would allow for close to monthly
updates of the GARCH parameters used in the model. The decay factor
value of 0.94 was selected based on the factor initially proposed by
JP Morgan's RiskMetrics methodology (see JPMorgan/Reuters, 1996.
``RiskMetrics--Technical Document'', Fourth edition).
    \29\ The MRWG is responsible for assisting OCC's Management
Committee in overseeing and governing OCC's model-related risk
issues and includes representatives from OCC's Financial Risk
Management department, Quantitative Risk Management department,
Model Validation Group, and Enterprise Risk Management department.
---------------------------------------------------------------------------

    The proposed changes are intended to reduce the oversensitivity of
the current Implied Volatility Model to large, sudden shocks in market
volatility and therefore result in margin requirements that are more
stable and that remain commensurate with the risks presented during
periods of sudden, extreme volatility.\30\ The proposed changes are
expected to produce margin requirements that are very similar to those
generated using OCC's existing model during quiet, less volatile market
periods; however, during more volatile periods, the proposed changes
would result in a more measured initial response to increases in the
volatility of volatility with margin requirements that may remain
elevated for a longer period of time after the shock subsides than
experienced under OCC's current model. The proposed changes are
intended to reduce procyclicality in OCC's margin methodology across
volatile market periods while continuing to capture changes in implied
volatility and produce margin requirements that are commensurate with
the risks presented by OCC's cleared options products. The proposed
changes therefore would reduce the risk that a sudden, extreme increase
in margin requirements may stress Clearing Members' ability to obtain
liquidity to meet such increased requirements, particularly in periods
of extreme volatility.
---------------------------------------------------------------------------

    \30\ As noted above, OCC has performed analysis of the impact of
the proposed changes, and OCC's backtesting of the proposed model
demonstrates comparable exceedance counts and coverage levels to the
current model during the most recent volatile period.
---------------------------------------------------------------------------

Implementation Timeframe

    OCC expects to implement the proposed changes within thirty (30)
days after the date that OCC receives all necessary regulatory
approvals for the proposed changes. OCC will announce the
implementation date of the proposed change by an Information Memorandum
posted to its public website at least 2 weeks prior to implementation.

Anticipated Effect on, and Management of, Risk

    The volatility changes forecasted by OCC's current Implied
Volatility Model are extremely sensitive to large, sudden spikes in
volatility, which can at times result in over reactive margin
requirements that OCC believes are unreasonable and procyclical (for
the reasons set forth above). Such sudden, unreasonable increases in
margin requirements may stress certain Clearing Members' ability to
obtain liquidity to meet those requirements, particularly in periods of
extreme volatility, and could result in a Clearing Member being delayed
in meeting, or ultimately failing to meet, its daily settlement
obligations to OCC. OCC notes that the proposed changes are expected to
produce margin requirements that are very similar to those generated
using OCC's existing model during quiet, less volatile market periods.
The proposed changes would, however, result in a more measured initial
response to increases in the volatility of volatility with margin
requirements that may remain elevated for a longer period after the
shock subsides than experienced under OCC's current model. The proposed
changes would therefore reduce the likelihood that OCC's Implied
Volatility Model would produce extreme, over reactive margin
requirements that could strain the ability of certain Clearing Members
to meet their daily margin requirements at OCC by reducing
procyclicality in OCC's margin methodology and ensuring more stable and
appropriate changes in margin requirements across volatile market
periods while continuing to capture changes in implied volatility and
produce margin requirements that are commensurate with the risks
presented.

Consistency With the Payment, Clearing and Settlement Supervision Act

    The stated purpose of the Clearing Supervision Act is to mitigate
systemic risk in the financial system and promote financial stability
by, among other things, promoting uniform risk management standards for
systemically important financial market utilities and strengthening the
liquidity of systemically important financial market utilities.\31\
Section 805(a)(2) of the Clearing Supervision Act \32\ also authorizes
the Commission to prescribe risk management standards for the payment,
clearing and settlement activities of designated clearing entities,
like OCC, for which the Commission is the supervisory agency. Section
805(b) of the Clearing Supervision Act \33\ states that the objectives
and principles for

risk management standards prescribed under Section 805(a) shall be to:
---------------------------------------------------------------------------

    \31\ 12 U.S.C. 5461(b).
    \32\ 12 U.S.C. 5464(a)(2).
    \33\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------

     Promote robust risk management;
     promote safety and soundness;
     reduce systemic risks; and
     support the stability of the broader financial system.
    OCC believes that the proposed changes described herein would
enhance its margin methodology in a manner consistent with the
objectives and principles of Section 805(b) of the Clearing Supervision
Act \34\ and the risk management standards adopted by the Commission in
Rule 17Ad-22 under the Act for the reasons set forth below.\35\
---------------------------------------------------------------------------

    \34\ Id.
    \35\ 17 CFR 240.17Ad-22. See Securities Exchange Act Release
Nos. 68080 (October 22, 2012), 77 FR 66220 (November 2, 2012) (S7-
08-11) (``Clearing Agency Standards''); 78961 (September 28, 2016),
81 FR 70786 (October 13, 2016) (S7-03-14) (``Standards for Covered
Clearing Agencies''). The Standards for Covered Clearing Agencies
became effective on December 12, 2016. OCC is a ``covered clearing
agency'' as defined in Rule 17Ad-22(a)(5) and therefore must comply
with the requirements of Rule 17Ad-22(e).
---------------------------------------------------------------------------

    OCC believes the proposed changes are consistent with the
objectives and principles of Section 805(b) of the Clearing Supervision
Act \36\ in that they would promote robust risk management and safety
and soundness while reducing systemic risks and supporting the
stability of the broader financial system. As discussed above, the
volatility changes forecasted by OCC's current Implied Volatility Model
are extremely sensitive to large, sudden spikes in volatility, which
can at times result in over reactive margin requirements that OCC
believes are unreasonable and procyclical. Such sudden, unreasonable
increases in margin requirements may stress certain Clearing Members'
ability to obtain liquidity to meet those requirements, particularly in
periods of extreme volatility, and could result in a Clearing Member
being delayed in meeting, or ultimately failing to meet, its daily
settlement obligations to OCC. OCC notes that the proposed changes are
expected to produce margin requirements that are very similar to those
generated using OCC's existing model during quiet, less volatile market
periods. The proposed changes would, however, result in a more measured
initial response to increases in the volatility of volatility with
margin requirements that may remain elevated for a longer period after
the shock subsides than experienced under OCC's current model. The
proposed changes would therefore reduce the likelihood that OCC's
Implied Volatility Model would produce extreme, over reactive margin
requirements by reducing procyclicality in OCC's margin methodology and
ensuring more stable and appropriate changes in margin requirements
across volatile market periods while continuing to provide for robust
management of the risks presented by the implied volatility of OCC's
cleared options products. Accordingly, OCC believes the proposed
changes would promote robust risk management and safety and soundness
while reducing systemic risks and supporting the stability of the
broader financial system.
---------------------------------------------------------------------------

    \36\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------

    Rules 17Ad-22(e)(6)(i) and (v) \37\ require a covered clearing
agency that provides central counterparty services to establish,
implement, maintain and enforce written policies and procedures
reasonably designed to cover its credit exposures to its participants
by establishing a risk-based margin system that (1) considers, and
produces margin levels commensurate with, the risks and particular
attributes of each relevant product, portfolio, and market and (2) uses
an appropriate method for measuring credit exposure that accounts for
relevant product risk factors and portfolio effects across products. As
noted above, OCC's current model for implied volatility demonstrates
extreme sensitivity to sudden spikes in volatility, which can at times
result in over reactive margin requirements that OCC believes are
unreasonable and procyclical. The proposed changes are designed to
reduce the oversensitivity of the model and produce margin requirements
that are commensurate with the risks presented during periods of
sudden, extreme volatility. The proposed model enhancements are
expected to produce margin requirements that are very similar to those
generated using OCC's existing model during quiet, less volatile market
periods; however, the proposed changes would result in a more measured
initial response to increases in the volatility of volatility with
margin requirements that may remain elevated for a longer period of
time after the shock subsides than experienced under OCC's current
model. The proposed changes are designed to reduce procyclicality in
OCC's margin methodology and ensure more stable changes in margin
requirements across volatile market periods while continuing to capture
changes in implied volatility and produce margin requirements that are
commensurate with the risks presented by OCC's cleared options. As a
result, OCC believes that the proposed changes are reasonably designed
to consider, and produce margin levels commensurate with, the risk
presented by the implied volatility of OCC's cleared options and use an
appropriate method for measuring credit exposure that accounts for this
product risk factor (i.e., implied volatility) in a manner consistent
with Rules 17Ad-22(e)(6)(i) and (v).\38\
---------------------------------------------------------------------------

    \37\ 17 CFR 240.17Ad-2(e)(6)(i) and (v).
    \38\ Id.
---------------------------------------------------------------------------

III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action

    The proposed change may be implemented if the Commission does not
object to the proposed change within 60 days of the later of (i) the
date the proposed change was filed with the Commission or (ii) the date
any additional information requested by the Commission is received. OCC
shall not implement the proposed change if the Commission has any
objection to the proposed change.
    The Commission may extend the period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission providing the clearing agency with prompt written notice
of the extension. A proposed change may be implemented in less than 60
days from the date the advance notice is filed, or the date further
information requested by the Commission is received, if the Commission
notifies the clearing agency in writing that it does not object to the
proposed change and authorizes the clearing agency to implement the
proposed change on an earlier date, subject to any conditions imposed
by the Commission.
    OCC shall post notice on its website of proposed changes that are
implemented.
    The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the advance
notice is consistent with the Clearing Supervision 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-OCC-2018-804 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2018-804. 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 advance notice that are filed with the
Commission, and all written communications relating to the advance
notice 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 a.m. and 3 p.m.
Copies of the filing also will be available for inspection and copying
at the principal office of the self-regulatory organization.
    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-OCC-2018-804 and
should be submitted on or before December 17, 2018.

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2018-25606 Filed 11-23-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 214 (Tuesday, November 7, 2017)]
[Notices]
[Pages 51669-51670]
[FR Doc No: 2017-24158]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Twenty Fifth RTCA SC-223 IPS and AeroMACS Plenary

AGENCY: Federal Aviation Administration (FAA), U.S. Department of
Transportation (DOT).

ACTION: Twenty Fifth RTCA SC-223 IPS and AeroMACS Plenary.

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

SUMMARY: The FAA is issuing this notice to advise the public of a
meeting of Twenty Fifth RTCA SC-223 IPS and AeroMACS Plenary.

DATES: The meeting will be held December 4-8, 2017 9:00 a.m.--5:00 p.m.

ADDRESSES: The meeting will be held at: RTCA Headquarters, 1150 18th
Street NW., Suite 910, Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Rebecca Morrison at [email protected]
or<PHONE_NUMBER>, or The RTCA Secretariat, 1150 18th Street NW., Suite
910, Washington DC, 20036, or by telephone at<PHONE_NUMBER>, fax at
(202) 833-9434, or Web site at http://www.rtca.org.

SUPPLEMENTARY INFORMATION: Pursuant to section 10(a)(2) of the Federal
Advisory Committee Act (Pub. L. 92-463, 5 U.S.C., App.), notice is
hereby given for a meeting of the Twenty Fifth RTCA SC-223 IPS and
AeroMACS Plenary. The agenda will include the following:

Monday, December 4, 2017 9:00 a.m.-5:00 p.m.

1. Welcome, Introductions, Administrative Remarks
2. Review of previous meeting notes and action items
3. Review of Current State of Industry Standards
    A. ICAO WG-I
    B. AEEC IPS Sub Committee
    C. EUROCAE WG status
4. Current State of Industry Activities
    A. SESAR Programs
    B. ESA IRIS Precursor
    C. Any Other Activities
5. IPS Technical Discussions
    A. Review of IPS high level profile (working papers)
    B. Review of IPS RFC detail Profiles
    C. Prioritization of additional IETF RFCs for Profiling
6. Any Other Topics of Interest
7. Plans for Next Meetings

Tuesday December 5, 2017 9:00 a.m.-5:00 p.m.

8. Continue with Plenary Agenda

Wednesday, December 6, 2017 9:00 a.m.-5:00 p.m.

9. Continue with Plenary Agenda

Thursday, December 7, 2017 9:00 a.m.-5:00 p.m.

10. Continue with Plenary Agenda

Friday, December 8, 2017 9:00 a.m.-12:00 p.m.

11. Continue with Plenary Agenda
12. Review of Action Items and Meeting Summary
13. Adjourn

    Attendance is open to the interested public but limited to space
availability. With the approval of the chairman, members of the public
may present oral statements at the meeting. Persons wishing to present
statements or obtain information should contact the person listed in
the FOR FURTHER INFORMATION CONTACT section. Members of the public may
present a written statement to the committee at any time.

    Issued in Washington, DC on November 2, 2017.
Mohannad Dawoud,
Management & Program Analyst, Partnership Contracts Branch, ANG-A17,
NextGen, Procurement Services Division,
    Federal Aviation Administration.
[FR Doc. 2017-24158 Filed 11-6-17; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 241 (Tuesday, December 15, 2020)]
[Notices]
[Pages 81265-81267]
[FR Doc No: 2020-27521]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2001-11213, Notice No. 25]

Drug and Alcohol Testing: Determination of Minimum Random Testing
Rates for 2021

AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).

ACTION: Notification of determination.

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

SUMMARY: This notification of determination announces FRA's minimum
annual random drug and minimum annual random alcohol testing rates for
covered service and maintenance-of-way (MOW) employees for calendar
year 2021.

DATES: This determination takes effect December 15, 2020.

FOR FURTHER INFORMATION CONTACT: Gerald Powers, FRA Drug and Alcohol
Program Manager, by email<EMAIL_ADDRESS>or by telephone: 202-
493-6313; or Sam Noe, FRA Drug and Alcohol Program Specialist, by
email<EMAIL_ADDRESS>or by telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: FRA is announcing the 2021 minimum annual
random drug and alcohol testing rates for covered service and MOW
employees. For calendar year 2021, the minimum annual random testing
rates for covered service employees will continue to be 25 percent for
drugs and 10 percent for alcohol, while the minimum annual random
testing rates for MOW employees will continue to be 50 percent for
drugs and will be lowered to 10 percent for alcohol. Because these
rates represent minimums, railroads and contractors may conduct FRA
random testing at higher rates.

Discussion

    To set its minimum annual random testing rates for each year, FRA
examines the last two complete calendar years of railroad industry drug
and alcohol program data submitted to its Management Information System
(MIS). FRA has also, however, reserved the right to consider factors
other than MIS-reported data before deciding whether to lower annual
minimum random testing rates. See 63 FR 71789 (Dec. 30, 1998).

Random Testing Rates for Covered Service Employees

    The rail industry's random drug testing positive rate for covered
service employees (employees subject to the Federal hours of service
laws and regulations) remained below 1.0 percent for 2018 and 2019. The
Administrator has therefore determined the minimum annual random drug
testing rate for the period January 1, 2021, through December 31, 2021,
will remain at 25 percent for covered service employees. The industry-
wide random alcohol testing violation rate for covered service
employees remained below 0.5 percent for 2018 and 2019. Therefore, the
Administrator has determined the minimum random alcohol testing rate
will remain at 10 percent for covered service employees for the period
January 1, 2021, through December 31, 2021.

Random Testing Rates for MOW Employees

    MOW employees became subject to FRA random drug and alcohol testing
in June 2017. See 81 FR 37894 (June 10, 2016). FRA now has MIS data for
two full consecutive years of the industry-wide performance rates for
MOW employees, 2018 and 2019. While FRA may lower the minimum random
drug testing rate to 25 percent whenever the industry-wide random drug
positive rate is less than 1.0 percent for two consecutive calendar
years while testing at the 50 percent rate, FRA has reserved the right
to consider other factors before deciding whether to lower annual
minimum random testing rates. See 63 FR 71789 (Dec. 30, 1998).
    As illustrated in the figures in the appendix below, in contrast to
the drug testing positive rate for covered service employees that
remained substantially below 1.0 percent for 2018 and 2019, the random
drug testing positive rate for MOW employees is not only trending
upwards, but also approaching the 1.0 percent positive rate threshold
at which point the Administrator will raise the drug testing rate under
49 CFR 219.625(d)(2). Specifically, the industry-wide random drug
testing violation rate for MOW employees increased from 0.69 percent in
2018 to 0.8 percent in 2019, and MOW employees continue to have a
higher positive testing rate than covered service employees.\1\ The
Administrator further notes that MOW employees who were performing
duties for a railroad before June 12, 2017, were exempted from the pre-
employment drug testing requirement. See 49 CFR 219.501(e). As such,
some MOW employees may remain who have never been subject to FRA drug
testing because they have not yet been randomly selected.
---------------------------------------------------------------------------

    \1\ While the drug testing positive rate for covered service
employees also increased from 0.50 percent in 2018 to 0.57 percent
in 2019, a concerning trend upwards, 0.57 percent is far below the
0.80 positive rate for MOW employees and remains substantially below
the 1.0 percent threshold for raising rates.
---------------------------------------------------------------------------

    Taking these factors into consideration, the Administrator finds it
is currently not in the interest of railroad safety to lower the random
drug testing rate for MOW employees. Therefore, for the period January
1, 2021, through December 31, 2021, the Administrator has determined
that the minimum annual random drug testing rate will continue to be 50
percent for MOW employees.
    Because the random alcohol testing violation rate for MOW employees
remained substantially below 0.5 percent for 2018 and 2019, and has
been trending downwards, the Administrator has determined that the
minimum annual random alcohol testing rate will be lowered to 10
percent for MOW employees for the period January 1, 2021, through
December 31, 2021.
BILLING CODE 4810-06-P

Appendix

[GRAPHIC] [TIFF OMITTED] TN15DE20.010

[GRAPHIC] [TIFF OMITTED] TN15DE20.011

    Issued in Washington, DC
Quintin C. Kendall,
Deputy Administrator.
[FR Doc. 2020-27521 Filed 12-14-20; 8:45 am]
BILLING CODE 4910-06-C


[Federal Register Volume 79, Number 143 (Friday, July 25, 2014)]
[Rules and Regulations]
[Page 43250]
[FR Doc No: 2014-17597]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2014-0582]

Drawbridge Operation Regulation; Lake Washington, Seattle, WA

AGENCY: Coast Guard, DHS.

ACTION: Notice of deviation from drawbridge regulation.

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SUMMARY: The Coast Guard has issued a temporary deviation from the
operating schedule that governs the Evergreen Point Floating Bridge
(State Route 520) across Lake Washington at Seattle, WA. This deviation
is necessary to accommodate the Seafair Air Show practice and event.
This deviation allows the bridge to remain in the closed position to
help minimize traffic congestion during the event.

DATES: This deviation is effective from 9:45 a.m. on July 31, 2014 to
2:40 p.m. August 3, 2014.

ADDRESSES: The docket for this deviation, [USCG-2014-0582] is available
at http://www.regulations.gov. Type the docket number in the ``SEARCH''
box and click ``SEARCH.'' Click on Open Docket Folder on the line
associated with this deviation. 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.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary deviation, call or email Mr. Steven Fischer, Bridge
Administrator, Thirteenth Coast Guard District; telephone<PHONE_NUMBER>,
email<EMAIL_ADDRESS>If you have questions on viewing the
docket, call Cheryl Collins, Program Manager, Docket Operations,
telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Washington State Department of
Transportation has requested that the draw span of the Evergreen Point
Floating Bridge (State Route 520) remain closed to vessel traffic
during the Seafair Airshow practice and event. The Intersate-90
floating bridge will be closed to road traffic during this time,
resulting in heavier than normal vehicle traffic on the Evergreen Point
Floating Bridge. The Evergreen Point Floating Bridge will remain closed
to vessel traffic to help with vehicular traffic congestion.
    The Evergreen Point Floating Bridge provides three navigational
openings for vessel passage, the movable floating span, subject to this
closure, and two fixed navigational openings; one on the east end of
the bridge and one on the west end. The fixed navigational opening on
the east end of the bridge provides a horizontal clearance of 150 feet
and a vertical clearance of 57 feet. The opening on the west end of the
bridge provides a horizontal clearance of 170 feet and a vertical
clearance of 45 feet.
    Vessels which do not require a bridge opening may continue to
transit beneath the bridges during this closure period. Under normal
conditions, during this time frame, the bridge operates in accordance
with 33 CFR 117.1049 which states the bridge shall open on signal if at
least two hours notice is given. The deviation allows the floating draw
span of the Evergreen Point Floating Bridge on Lake Washington to
remain in the closed position and need not open for maritime traffic
from 9:45 a.m. to 12 p.m. and 1:15 p.m. to 2:40 p.m. on July 31, 2014,
and 12:15 p.m. to 2:40 p.m. on August 1st, 2014, and 12:15 p.m. to 2:40
p.m. on August 2nd, 2014, and 12:15 p.m. to 2:40 p.m. on August 3rd,
2014. The bridge shall operate in accordance to 33 CFR 117.1049 at all
other times. Waterway usage on the Lake Washington Ship ranges from
commercial tug and barge to small pleasure craft. Vessels able to pass
through the bridge in the closed positions may do so at anytime. The
bridge will be able to open for emergencies and there is no immediate
alternate route for vessels to pass. The Coast Guard will also inform
the users of the waterways through our Local and Broadcast Notices to
Mariners of the change in operating schedule for the bridge so that
vessels can arrange their transits to minimize any impact caused by the
temporary deviation.
    In accordance with 33 CFR 117.35(e), the drawbridge must return to
its regular operating schedule immediately at the end of the designated
time period. This deviation from the operating regulations is
authorized under 33 CFR 117.35.

    Dated: July 15, 2014.
Steven M. Fischer,
Bridge Administrator, Thirteenth Coast Guard District.
[FR Doc. 2014-17597 Filed 7-24-14; 8:45 am]
BILLING CODE 9110-04-P