[Federal Register Volume 82, Number 15 (Wednesday, January 25, 2017)]
[Notices]
[Pages 8455-8459]
[FR Doc No: 2017-01605]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79818; File No. SR-OCC-2017-001]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Concerning The Options
Clearing Corporation's Margin Coverage During Times of Increased
Volatility

January 18, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 4, 2017, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by OCC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    This proposed rule change by OCC would modify the current process
for systematically monitoring market conditions and performing
adjustments to its margin coverage when current market volatility
increases beyond historically observed levels.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

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

1. Purpose
    OCC's margin methodology, the System for Theoretical Analysis and
Numerical Simulations (``STANS''), is OCC's proprietary risk management
system that calculates Clearing Members' \3\ margin requirements.\4\
STANS utilizes large-scale Monte Carlo simulations to forecast price
movement and correlations in determining a Clearing Member's margin
requirement.\5\ The STANS margin requirement is a portfolio calculation
at the level of Clearing Member legal entity marginable net positions
tier account (tiers can be customer, firm, or market marker) and
consists of an estimate of 99% 2-day expected shortfall and an add-on
for model risk (the concentration/dependence stress test charge).
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    \3\ See OCC By-Laws Article 1(C)(14).
    \4\ 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/.
    \5\ See OCC Rule 601.
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    The majority of risk factors utilized in the STANS methodology are
total returns on individual equity securities. Other risk factors
considered include: returns on equity indices; changes in the
calibrated coefficients of a model describing the yield curve for U.S.
government securities; ``returns'' on the nearest-to-expiration futures
contracts of various kinds; and changes in foreign exchange rates. For
the volatility of each risk factor, the Monte Carlo simulations use the
greater of: (i) The short-term volatility level predicted by the model;
and (ii) an estimate of its longer-run level. In between the monthly
re-estimations of all the models, volatilities are automatically re-
scaled to the greater of the short-term or the longer-run levels

to mitigate pro-cyclicality \6\ in the margin levels. (This daily
volatility measure is called the ``uniform scale factor.'') The uniform
scale factor is a multiplier used in connection with STANS calculations
to account for, among other things, the difference between short-term
and long-term volatility forecasts for equities. It is specifically
defined as the ratio of long-run volatility (10Y+) over short-run
volatility (2Y). It is used to ``scale up'' the short-run volatility of
the securities (e.g., IBM) that are subject to monthly update, in order
to estimate long-run volatility. It is also used to capture data gaps
between monthly updates.
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    \6\ A quality that is positively correlated with the overall
state of the economy is deemed to be pro-cyclical.
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    An approach employed by OCC to mitigate pro-cyclicality within
STANS is to estimate market volatility based on current market
conditions (``current market estimate'') and compare this current
market estimate to a long-run estimate of market volatility (``long-run
market estimate''). This comparison utilizes certain market benchmarks
(or factors), which serve as proxies for the overall volatility of an
asset class or group of products. If the long-run market estimate for a
factor is found to be greater than the current market estimate, the
volatility estimates for all products tied to that factor are adjusted
(or scaled) up in a manner proportionate to the relationship between
the current market volatility and the long-run market volatility for
that factor.
    Current STANS includes a single factor (``uniform scale factor''),
which serves as the proxy for the equity asset class. This uniform
scale factor is calibrated based on changes in the volatility of the
Standard & Poor's 500[supreg] Index (``SPX'') and applied to all
``equity-based products'' in the manner described above. Currently, the
uniform scale factor is the only scale factor used in STANS. The
proposed change is intended to enhance the STANS margin calculations by
providing for the capability to increase the number of scale factors
used within STANS in cases where a more appropriate proxy has been
identified for a particular asset class or group of products to measure
the relationship between current vs. long-run market volatility.

Summary of the Proposed Changes

    OCC proposes a number of enhancements to its STANS margin
methodology that are designed to more accurately compute Clearing
Member margin requirements to reflect the risk of Clearing Member
portfolios. Specifically, OCC proposes to: (1) Adjust the longer-run
volatility forecast used in OCC's computation of the uniform scale
factor so that it would rely only on post-1957 price information (i.e.,
price information since the introduction of the SPX) in order to more
accurately account for the behavior of SPX returns only since the
inception of the index; (2) expand the number of scale factors used for
equity-based products to more accurately measure the relationship
between current and long-run market volatility with proxies that
correlate more closely to certain products carried within the equity
asset class; (3) apply relevant scale factors to the greater of (i) the
estimated variance of 1-day return scenarios or (ii) the historical
variance of the daily return scenarios of a particular instrument, as a
floor to mitigate procyclicality; and (4) implement processing changes
that would update the statistical models for common factors related to
Treasury securities on a daily basis. The proposed changes are
discussed in more detail below.
    OCC believes that the current approach to scale factors in STANS
would be improved by providing the functionality to establish multiple
scale factors intended to more accurately measure the relationship
between current and long-run market volatility with proxies that
correlate more closely to groups of products within an asset class
(e.g., Russell 1000 Index and Russell 1000 ETFs), which would enhance
the accuracy of the margin requirements in STANS.\7\ By incorporating
this process to scale margin coverages when current market volatility
exceeds historically heightened levels that have been established to
mitigate pro-cyclicality, OCC's margin methodology is able to
expeditiously respond to severe changes in market volatility and thus
better protect the integrity of our financial markets.
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    \7\ In this case, accuracy is measured against backtesting
results. Pursuant to OCC's Model Risk Management Policy, an accurate
99% value-at-risk model should expect exceedances at a rate of 1%
per independent trial. If the exceedance rate is too high, the model
is missing key risks; if the exceedance rate is too low, the model
is not consistent with the organization's risk appetite. To the
extent that the conditional variances of not all relevant risk
factors move in lock-step to the conditional variance of SPX,
multiple scale factors offers the opportunity to be more accurate.
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Scale Factor for Equity-Based Products

Current Uniform Scale Factor for Equity-Based Products
    The uniform scale factor for the SPX roughly represents the ratio
of OCC's estimates of the long-run market volatility to the forecast
market volatility determined by most recent 24-month daily historical
returns.\8\ To determine the estimate of current market volatility, OCC
relies on daily pricing information for equity securities and exchange-
traded funds over a twenty-four month period ending with the last day
of the immediately preceding month. To populate this twenty-four month
time series, OCC relies on external vendors, with which it maintains
redundant relationships for resiliency,\9\ to adjust the daily pricing
information to account for corporate actions involving these
securities. This daily pricing information is received from its
vendor(s) after the close of each month, at which time OCC updates its
twenty-four month time series adding the new month and dropping the
last month of data. This process of updating the time series on a
monthly basis is referred to as a ``pending'' time series due to the
batch process used to update the time series. The long-run time series
used by the uniform scale factor is updated on a daily basis (i.e.,
non-pending update) with pricing information for the SPX dating back to
January 1, 1946. OCC calculates the uniform scale factor each business
day by comparing the current market volatility, using pending price
updates to the long-run time series using non-pending, or current,
market prices.
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    \8\ The uniform scale factor has been a part of STANS since it
was installed in 2006. See Securities Exchange Act Release No. 53322
(February 15, 2006), 71 FR 9403 (February 23, 2006) (SR-OCC-2004-
20).
    \9\ Specifically, OCC maintains both a primary and backup data
center that receive live price feeds from multiple price vendors. In
the event of service disruption OCC is able to transition to an
alternate data center and/or pricing vendor, as applicable.
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    The uniform scale factor is applied to all equity products and is
used to adjust individual equity current market volatility estimates on
a daily basis based on the comparison of the current market volatility
and the long-run volatility estimate, which is updated daily. Should it
be observed that the current market volatility is less than the long-
run volatility, all products tied to the uniform scale factor will be
adjusted higher based on the ratio of the long-run volatility estimate
to the current market volatility estimate to account for the observed
change in volatility. In addition, the uniform scale factor is also
used to account for the fact that the distribution of returns for the
SPX has a ``fat tail'' \10\ because the scale factor

seeks to match estimates of expected margin shortfalls under the
scenarios in STANS for a hypothetical long position in the SPX.
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    \10\ A fat-tailed distribution is a probability distribution
that exhibits large skewness or kurtosis. Compared with a standard
normal distribution or bell curve, it has a higher probability of
occurrence of extreme events.
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    The uniform scale factor resulting from the calculations described
above is applied as a multiplier to hypothetical returns on a long
portfolio of equities produced during the Monte Carlo market scenarios
run within STANS. By ``scaling up'' hypothetical returns in this way,
the uniform scale factor relies on an assumption that more recent
behavior of SPX returns will provide an appropriate proxy for the
volatility in equity price returns that occur between monthly updates
of price data for the pending short-run time series. Accordingly, the
uniform scale factor helps OCC set margin requirements that account for
this proxy to ensure that Clearing Members maintain margin assets that
would be sufficient in light of historical volatility of the SPX.
Proposed Changes to the Uniform Scale Factor for Equity-Based Products
    The average longer-run volatility forecast used in OCC's
computation of the uniform scale factor currently relies on daily
pricing information for component securities of the SPX dating back to
January of 1946. This time series predates, however, the 1957
introduction of the SPX. To accurately account for the behavior of SPX
returns only since the inception of the index, OCC proposes to adjust
the longer-run volatility forecast so that it would rely only on the
post-1957 information. OCC believes that this approach would reduce
model risk \11\ and improve the quality of the data by avoiding the
need to make assumptions related to the composition of the index before
its actual development.\12\
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    \11\ OCC defines ``model risk'' as the potential for adverse
consequences of incorrect or misused model outputs and reports.
    \12\ As defined in OCC's Model Risk Management Policy, Model
Risk, in the sense of material exposure to the consequences of poor
assumptions, is reduced by making models adhere accurately to
observed phenomena. In this case, by reducing the role of the
uniform scale factor as a proxy between monthly updates of
univariate models for risk factors and by allowing certain risk
factors to bypass the monthly update process, as described below,
OCC believes that this proposed change would reduce model risk.
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Proposed New Scale Factors for Equity-Based Products
    To more accurately measure the relationship between current and
long-run market volatility with proxies that correlate more closely to
certain products carried within the equity asset class, OCC proposes to
expand the number of scale factors to include: (1) Russell 2000[supreg]
Index (12/29/1978); (2) Dow Jones Industrial Average Index (9/23/1997);
(3) NASDAQ-100 Index (2/4/1985) and (4) S&P 100 Index (1/2/1976).\13\
While the SPX scale factor will continue to serve as the default scale
factor for most equity products, the index options, futures and ETFs
which map to these indexes will be assigned to these scale factors and
whose current volatility estimates will be adjusted based on the
aforementioned methodology.
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    \13\ The dates in parentheticals are the dates from which OCC
has historical data on the specified index.
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    Consistent with OCC's existing Margin Policy,\14\ OCC will evaluate
the performance and use of these scale factors and determine if changes
to the mapping of products to scale factors or the addition of new
scale factors are warranted. Prior to any changes being implemented OCC
would present its findings to the Enterprise Risk Management Committee
and obtain approval to make the recommended enhancements.
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    \14\ OCC's Margin Policy describes OCC's approach to prudently
managing market and credit exposures presented by its Clearing
Members.
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Proposed Anti-Procyclical Measure for Equity-Based Scale Factors
    In order to mitigate against pro-cyclicality, OCC intends to apply
the relevant scale factor to the greater of (i) the estimated variance
of the 1-day return scenarios or (ii) the historical variance of the
daily return scenarios of a particular instrument, as a floor. OCC
believes this floor would mitigate pro-cyclicality in the relevant
return scenarios because it would result in a higher estimate of
volatility during periods of relatively lower market volatility than if
only the estimated variance in (i) above was used.

Proposed Daily Statistical Updates for the Treasury Yield Curve Model

    In addition to implementing the scale factors described above, OCC
is also proposing to implement processing changes that would update the
statistical models for common factors related to Treasury securities on
a daily basis. These model changes would allow OCC to monitor and
respond to material changes in the volatility of Treasury securities
while also mitigating pro-cyclicality without implementing a scale
factor specific to Treasury securities. OCC believes that updating its
Treasury securities models on a daily basis is a more appropriate way
to monitor and respond to material changes in the volatility of
Treasury securities while also mitigating pro-cyclicality since the
Treasury yield curve model is relatively less complex, with only three
factors, and the structure of the Treasuries securities model does not
lend itself to a returns-based scale factor (as is used with equity and
volatility derivatives, as described above).
    Specifically, OCC is proposing to enhance its existing yield curve
model that OCC uses to project U.S. Treasury security returns, which is
updated monthly. The model contains underlying data set and time series
information for Treasury securities, which run from February 4, 2008
(based on available historical data) and, after implementing the
proposed enhancements, the model would be updated on a daily basis as
new data and time series information becomes available. The proposed
enhancements would promote a more accurate approach to margining within
STANS, as it relates to Treasury securities, particularly when markets
are volatile because the daily statistical updates would prevent the
model from becoming stale between monthly updates.

Impact Analysis and Outreach

    Based on simulation testing for the period from January 14, 2015,
to March 6, 2015, risk margins (i.e., expected shortfall plus the
concentration/dependence add-on) would have been approximately 5.2%
higher in aggregate as a consequence of these changes. This is mostly
due to higher coverage for the Russell 2000 Index and index ETF
products under the new methodology.
    In order to inform Clearing Members of the proposed change, OCC
provided a general update at a recent OCC Roundtable \15\ meeting and
would continue to provide updates at Roundtable meetings on a quarterly
basis going forward. In addition, OCC would publish an Information
Memorandum to all Clearing Members describing the proposed change and
will provide additional periodic Information Memoranda updates prior to
the implementation date. OCC would also provide at least thirty days
prior notice to Clearing Members before implementing the change.
Additionally, OCC would perform targeted and direct outreach with
Clearing Members that

would be most impacted by the proposed change and OCC would work
closely with such Clearing Members to coordinate the implementation and
associated funding for such Clearing Members resulting from the
proposed change.\16\ Finally, OCC would discuss the proposed change
with its cross-margin clearing house partners to ensure they are aware
of the proposed change.\17\
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    \15\ The OCC Roundtable was established to bring Clearing
Members, exchanges and OCC together to discuss industry and
operational issues. It is comprised of representatives of the senior
OCC staff, participant exchanges and Clearing Members, representing
the diversity of OCC's membership in industry segments, OCC-cleared
volume, business type, operational structure and geography.
    \16\ Specifically, OCC will discuss with those Clearing Members
how they plan to satisfy any increase in their margin requirements
associated with the proposed change.
    \17\ Cross-margin accounts are not uniquely affected by the
proposed change and would be affected by the proposed change in the
same manner as any other type of OCC account.
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2. Statutory Basis
    OCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act \18\ because it would assure the
safeguarding of securities and funds in the custody and control of OCC
by enhancing the current approach for monitoring market conditions and
performing adjustments to OCC's margin coverage on equity and Treasury-
based products for which OCC provides clearance and settlement services
when current volatility increase beyond historically observed levels.
OCC uses the margin it collects from a defaulting Clearing Member to
protect other Clearing Members from loss as a result of the defaulting
Clearing Member. By more accurately computing Clearing Member margin
requirements OCC can assure the safeguarding of securities and funds in
its custody and control.
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    \18\ 15 U.S.C. 78q-1(b)(3)(F).
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    The proposed model changes described above would enhance the manner
in which OCC computes margin requirements for Clearing Members.
Specifically, the proposed changes to the uniform scale factor for
equity-based products to rely only on post-1957 information would
reduce model risk and improve the quality of data by avoiding
unnecessary assumptions related to the composition of the SPX before
its inception. The proposed four new scale factors for equity-based
products would more accurately measure the relationship between current
and long-run market volatility with proxies that are correlated more
closely to certain products within the equity asset class. The proposed
daily statistical updates for the Treasury yield curve model would
allow OCC to monitor and respond to material changes in the volatility
of Treasury securities while also mitigating pro-cyclicality. Taken
together, the changes to the uniform scale factor, the addition of new
equity-based scale factors, and the introduction of daily statistical
updates for the Treasury yield curve model would cause STANS to more
accurately compute Clearing Member margin requirements to reflect the
risk of Clearing Member portfolios thereby reducing the risk that
Clearing Member margin assets would be insufficient should OCC need to
use such assets to close-out the positions of a defaulted Clearing
Member. Further, the proposed rule change would make it less likely
that the default of a Clearing Member would stress the financial
resources available to OCC, which include mutualized resource funds
deposited by non-defaulting Clearing Members as Clearing Fund.
    OCC believes that the proposed rule change is also consistent with
Rule 17Ad-22(b)(2) \19\ because it would limit OCC's credit exposures
to its participants under normal market conditions and use risk-based
models and parameters to set OCC's margin requirements. As described
above, the risk-based model and parameter changes to the uniform scale
factor, the addition of new equity-based scale factors, and the
introduction of daily statistical updates for the Treasury yield curve
model cause STANS to more accurately compute Clearing Member margin
requirements. By more accurately computing Clearing Member margin
requirements, OCC reduces its credit exposure to its Clearing Members.
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    \19\ 17 CFR 240.17Ad-22(b)(2).
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    The proposed rule changes are not inconsistent with the existing
rules of OCC, including any other rules proposed to be amended.

(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impact or
impose any burden on competition.\20\ The proposed rule change would
allow OCC to adjust Clearing Member margin requirements when current
volatility increases beyond historical levels. While as a result of the
proposed rule change Clearing Members may experience daily margin
fluctuations of up to ten percent, such fluctuations are equal in
amount to fluctuations Clearing Members typically experience as a
result of changes in market price, volatility or interest rates.
Therefore, OCC believes that the proposed rule change would not
unfairly inhibit access to OCC's services or disadvantage or favor any
particular user in relationship to another user. In addition, the
proposed rule change would be applied uniformly to all Clearing Members
in establishing their margin requirements.
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    \20\ 15 U.S.C. 78q-1(b)(3)(I).
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    For the foregoing reasons, OCC believes that the proposed rule
change is in the public interest, would be consistent with the
requirements of the Act applicable to clearing agencies, and would not
impact or impose a burden on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self- regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-OCC-2017-001 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2017-001. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's

Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the
submission, all subsequent amendments, all written statements with
respect to the proposed rule change that are filed with the Commission,
and all written communications relating to the proposed rule change
between the Commission and any person, other than those that may be
withheld from the public in accordance with the provisions of 5 U.S.C.
552, will be available for Web site viewing and printing in the
Commission's Public Reference Room, 100 F Street NE., Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC and on OCC's Web site at
http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_17_001.pdf.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly.
    All submissions should refer to File Number SR-OCC-2017-001 and
should be submitted on or before February 15, 2017.
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    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated Authority.\21\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-01605 Filed 1-24-17; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 151 (Tuesday, August 10, 2021)]
[Notices]
[Pages 43719-43722]
[FR Doc No: 2021-16994]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2021-0055 (Notice No. 2021-06)]

Hazardous Materials: Information Collection Activities

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Transportation (DOT).

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this
notice announces that the Information Collection Requests (ICRs)
discussed below will be forwarded to the Office of Management and
Budget for renewal and extension. These ICRs describe the nature of the
information collections and their expected burdens.

DATES: Interested persons are invited to submit comments on or before
September 9, 2021.

ADDRESSES: Written comments and recommendations for the proposed
information collection should be sent within 30 days of publication of
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
    We invite comments on: (1) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the Department, including whether the information will have practical
utility; (2) the accuracy of the Department's estimate of the burden of
the proposed information collection; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on respondents,
including the use of automated collection techniques or other forms of
information technology.
    Docket: For access to the dockets to read background documents or
comments received, go to http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Steven Andrews or Shelby Geller,
Standards and Rulemaking Division,<PHONE_NUMBER><EMAIL_ADDRESS>
Pipeline and Hazardous Materials Safety Administration, U.S. Department
of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-
0001.

SUPPLEMENTARY INFORMATION: Section 1320.8(d), title 5, Code of Federal
Regulations (CFR) requires PHMSA to provide interested members of the
public and affected agencies an opportunity to comment on information
collection and recordkeeping requests. This notice identifies
information collection requests that PHMSA will be submitting to the
Office of Management and Budget (OMB) for renewal and extension. These
information collections are contained in 49 CFR 171.6 of the Hazardous
Materials Regulations (HMR; 49 CFR parts 171-180). PHMSA has revised
burden estimates where appropriate to reflect current reporting levels
or adjustments based on changes in proposed or final rules published
since the information collections were last approved. The following
information is provided for each information collection: (1) Title of
the information collection, including former title if a change is being
made; (2) OMB control number; (3) summary of the information collection
activity; (4) description of affected public; (5) estimate of total
annual reporting and recordkeeping burden; and (6) frequency of
collection. PHMSA will request a 3-year term of approval for each
information collection activity and will publish a notice in the
Federal Register upon OMB's approval.
    A notice and request for comments with a 60-day comment period on
these ICRs was published in the Federal Register on May 18, 2021, [86
FR 27009] under Docket No. PHMSA-2021-0055 (Notice No. 2021-04). PHMSA
did not receive any comments in response to this notice.
    PHMSA requests comments on the following information collections:
    Title: Rulemaking, Special Permits, and Preemption Requirements.
    OMB Control Number: 2137-0051.
    Summary: This information collection applies to procedures for
requesting changes, exceptions, and other determinations in relation to
the HMR. Specific areas covered in this information collection include
part 105, subparts A and B, ``Hazardous Materials Program Definitions
and General Procedures''; part 106, subpart B, ``Participating in the
Rulemaking Process''; part 107, subpart B, ``Special Permits''; and
part 107, subpart C, ``Preemption.'' The Federal hazardous materials
transportation law directs the Secretary of Transportation to prescribe
regulations for the safe transportation of hazardous materials in
commerce. PHMSA is authorized to accept petitions for rulemaking and
appeals, as well as applications for special permits, preemption
determinations, and waivers of preemption. The types of information
collected include:
    (1) Petitions for Rulemaking: Any person may petition PHMSA to add,
amend, or delete a regulation in parts 110, 130, 171 through 180, or
may petition the Office of the Chief Counsel to add, amend, or delete a
regulation in parts 105, 106, or 107. Petitions submitted to PHMSA are
required to contain information as specified in Sec.  106.100 of the
HMR.
    (2) Appeals: Except as provided in Sec.  106.40(e), any person may
submit an appeal to our actions in accordance with the Appeals
procedures found in Sec. Sec.  106.110 through 106.130.
    (3) Applications for Special Permit: Any person applying for a
special permit must include the citation of the specific regulation
from which the applicant seeks relief; specification of the proposed
mode or modes of transportation; detailed description of the proposed
special permit (e.g., alternative packaging, test, procedure, or
activity), including as appropriate, written descriptions, drawings,
flow charts, plans and other supporting documents, etc. Under this OMB
control number, applicants may apply for a new special permit, renew or
modify an existing special permit, or request party status to a special
permit. These procedures can be found in part 107, subpart B of the
HMR.
    (4) Applications for Preemption Determination: With the exception
of highway routing matters covered under 49 U.S.C. 5125(c), any person
directly affected by any requirement of a state, political subdivision,
or Native American tribe may apply to the Chief Counsel for a
determination whether that requirement is preempted by Sec.
107.202(a), (b), or (c). The application must include the text of the
state, political subdivision, or Native American tribe requirement for
which the determination is sought; specify each requirement of the
federal hazardous materials transportation law, regulations issued
under the federal hazardous material transportation law, or hazardous
material transportation security regulations or directives issued by
the Secretary of Homeland Security with which the applicant seeks the
state, political subdivision, or Native American tribe requirement to
be compared; explain why the applicant believes the state, political
subdivision, or Native American tribe requirement should or should not
be preempted under the standards of Sec.  107.202; and state how the
applicant is affected by the state, political subdivision, or Native
American tribe requirement.
    (5) Waivers of Preemption: With the exception of requirements
preempted under 49 U.S.C. 5125(c), any person may apply to the Chief
Counsel for a waiver of preemption with respect to any requirement
that: (1) The state, political subdivision thereof, or Native American
tribe acknowledges to be preempted under the federal hazardous
materials transportation law, or (2) has been determined by a court of
competent jurisdiction to be so preempted. The Chief Counsel may waive
preemption with respect to such requirement upon a determination that
such requirement affords an equal or greater level of protection to the
public than is afforded by the requirements of

the federal hazardous materials transportation law or the regulations
issued thereunder, and does not unreasonably burden commerce.
    The information collected under these application procedures is
used in the review process by PHMSA in determining the merits of the
petitions for rulemakings and for reconsideration of rulemakings, as
well as applications for special permits, preemption determinations,
and waivers of preemption to the HMR. The procedures governing these
petitions for rulemaking and for reconsideration of rulemakings are
covered in subpart B of part 106. Applications for special permits,
preemption, determinations, and waivers of preemption are covered under
subparts B and C of part 107. Rulemaking procedures help PHMSA
determine whether a regulatory change is necessary, is consistent with
public interest, and maintains a level of safety equal to or superior
to that of current regulations. Special permit procedures provide the
information required for analytical purposes to determine whether the
requested relief provides for a comparable level of safety as provided
by the HMR. Additionally, PHMSA uses information from preemption
procedures to determine whether a requirement of a state, political
subdivision, or Indian tribe is preempted under 49 U.S.C. 5125, or
regulations issued thereunder, or whether a waiver of preemption should
be issued. The following information collections and their burdens are
associated with this OMB Control Number:

----------------------------------------------------------------------------------------------------------------
                                          Annual          Annual                                   Annual burden
       Information collection           respondents      responses         Time per response           hours
----------------------------------------------------------------------------------------------------------------
Petition for Rulemaking.............              20              20  8 hours...................             160
New Special Permit Application......             168             168  7 hours...................           1,176
Party Status Special Permit                      576             576  1.5 hours.................             864
 Application.
Renewal Special Permit Application..             936             936  1.5 hours.................           1,404
Modification Special Permit                      132             132  1 hour....................             132
 Application.
Special Permit Application--                   1,852           1,852  6 minutes.................             185
 Recordkeeping.
Designated Agent for Special Permit              100             100  2 hours...................             200
 Application.
Confidential Handling for Special                 31              31  15 minutes................            7.75
 Permit Application.
Preemption..........................               2               2  60 hours..................             120
Preemption Reconsideration..........               1               1  30 hours..................              30
----------------------------------------------------------------------------------------------------------------

    Affected Public: Shippers, carriers, packaging manufacturers, and
other affected entities.
    Annual Reporting and Recordkeeping Burden:
    Number of Respondents: 3,818.
    Total Annual Responses: 3,818.
    Total Annual Burden Hours: 4,278.75.
    Frequency of Collection: On occasion.
    Title: Flammable Cryogenic Liquids.
    OMB Control Number: 2137-0542.
    Summary: Provisions in Sec.  177.840(a)(2) specify certain safety
procedures and documentation requirements for drivers of motor vehicles
transporting flammable cryogenic liquids. This information allows the
driver to take appropriate remedial actions to prevent a catastrophic
release of the flammable cryogenics should the temperature of the
material begin to rise excessively or if the travel time will exceed
the safe travel time. These requirements are intended to ensure a high
level of safety when transporting flammable cryogenics due to their
extreme flammability and high compression ratio when in a liquid state.
The following information collections and their burdens are associated
with this OMB Control Number:

----------------------------------------------------------------------------------------------------------------
                                          Annual          Annual                                   Annual burden
       Information collection           respondents      responses         Time per response           hours
----------------------------------------------------------------------------------------------------------------
Flammable Cryogenic Liquids.........             175          18,200  3.5 minutes...............           1,062
Flammable Cryogenic Liquids--                    175          18,200  30 seconds................             152
 Recordkeeping.
----------------------------------------------------------------------------------------------------------------

    Affected Public: Carriers of cryogenic materials.
    Annual Reporting and Recordkeeping Burden:
    Number of Respondents: 350.
    Total Annual Responses: 36,400.
    Total Annual Burden Hours: 1,214.
    Frequency of Collection: On occasion.
    Title: Response Plans for Shipments of Oil.
    OMB Control Number: 2137-0591.
    Summary: In recent years, several major oil discharges damaged the
marine environment of the United States. Under authority of the Federal
Water Pollution Control Act, as amended by the Oil Pollution Act of
1990 (33 U.S.C. 1251 et seq.), PHMSA issued regulations in 49 CFR part
130 that require preparation of basic written spill response plans. The
following information collections and their burdens are associated with
this OMB Control Number:

----------------------------------------------------------------------------------------------------------------
                                          Annual          Annual                                   Annual burden
       Information collection           respondents      responses         Time per response           hours
----------------------------------------------------------------------------------------------------------------
Basic Written Response Plan--New                  80              80  33 hours..................           2,640
 Plans.
Basic Written Response Plan--                  7,920           7,920  1 hour....................           7,920
 Updating Plans.
----------------------------------------------------------------------------------------------------------------

    Affected Public: Carriers that transport oil in bulk, by motor
vehicle or rail.
    Annual Reporting and Recordkeeping Burden:
    Number of Respondents: 8,000.
    Total Annual Responses: 8,000.
    Total Annual Burden Hours: 10,560.
    Frequency of Collection: On occasion.
    Title: Requirements for United Nations (UN) Cylinders.
    OMB Control Number: 2137-0621.
    Summary: This information collection and recordkeeping burden is
the result

of efforts to amend the HMR to adopt standards for the design,
construction, maintenance, and use of cylinders and multiple-element
gas containers (MEGCs) based on the standards contained in the UN
Recommendations on the Transport of Dangerous Goods. Aligning the HMR
with the UN Recommendations promotes flexibility, permits the use of
technological advances for the manufacture of the pressure receptacles,
provides for a broader selection of pressure receptacles, reduces the
need for special permits, and facilitates international commerce in the
transportation of compressed gases. Information collection requirements
address domestic and international manufacturers of cylinders that
request approval by the approval agency for cylinder design types. The
approval process for each cylinder design type includes review, filing,
and recordkeeping of the approval application. The approval agency is
required to maintain a set of the approved drawings and calculations
for each design it reviews and a copy of each initial design type
approval certificate approved by the Associate Administrator for the
Office of Hazardous Materials Safety for not less than 20 years. The
following information collections and their burdens are associated with
this OMB Control Number:

----------------------------------------------------------------------------------------------------------------
                                           Total           Total                                   Total burden
       Information collection           respondents      responses         Time per response           hours
----------------------------------------------------------------------------------------------------------------
UN Pressure Receptacle Approval--New              35              35  6 hours...................             210
 Request.
UN Pressure Receptacle Approval--                100             100  6 hours...................             600
 Modified Request.
UN Pressure Receptacle Approval--                 75              75  6 minutes.................             7.5
 Recordkeeping.
----------------------------------------------------------------------------------------------------------------

    Affected Public: Fillers, owners, users, and retesters of UN
cylinders.
    Annual Reporting and Recordkeeping Burden:
    Number of Respondents: 210.
    Total Annual Responses: 210.
    Total Annual Burden Hours: 817.5.
    Frequency of Collection: On occasion.

    Issued in Washington, DC, on August 4, 2021, under authority
delegated in 49 CFR 1.97.
William A. Quade,
Deputy Associate Administrator of Hazardous Materials Safety, Pipeline
and Hazardous Materials Safety Administration.
[FR Doc. 2021-16994 Filed 8-9-21; 8:45 am]
BILLING CODE 4910-60-P