[Federal Register Volume 82, Number 46 (Friday, March 10, 2017)]
[Notices]
[Pages 13331-13332]
[FR Doc No: 2017-04719]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD17-11-000]

State Policies and Wholesale Markets Operated by ISO New England
Inc., New York Independent System Operator, Inc., and PJM
Interconnection, LLC; Notice of Technical Conference

    Take notice that the Federal Energy Regulatory Commission
(Commission) staff will hold a technical conference to discuss certain
matters affecting wholesale energy and capacity markets operated by the
Eastern Regional Transmission Organizations (RTOs) and Independent
System Operators (ISOs). The technical conference will take place on
May 1, 2017 and May 2, 2017 beginning at approximately 9:00 a.m. and
ending at approximately 5:00 p.m. The conference will be held at the
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426. All interested persons are invited to participate in the
conference. Commission members may participate in the conference.
    Competitive wholesale energy and capacity markets bring value to
customers by efficiently pricing energy and capacity, taking into
account the operational needs and the dynamics of the transmission
system, and providing transparent signals for investment and retirement
of resources. Over the years, the rules underpinning competitive
wholesale markets have evolved to address a myriad of issues while
ensuring the reliable delivery and sale of electricity at just and
reasonable rates. In recent years, there has been increased interest by
state policy makers to pursue policies that prioritize certain
resources or resource attributes. Because the wholesale competitive
markets, as currently designed, select resources based on principles of
operational and economic efficiency without specific regard to resource
type, there is an open question of how the competitive wholesale
markets, particularly in states or regions that restructured their
retail electricity service, can select resources of interest to state
policy makers while preserving the benefits of regional markets and
economic resource selection.
    Commission staff appreciates and has been closely monitoring each
of the Eastern RTO's/ISO's stakeholder discussions addressing wholesale
markets and state policies.\1\ These discussions have generally
recognized that alternative market designs could take the form of
changes to either the capacity or energy markets. Proposals to change
the wholesale energy market have generally focused on valuing various
resource attributes, including the value of fuel security or certain
environmental costs associated with the production of electric energy.
By comparison, proposals to change the capacity market have generally
focused on ways to preserve the integrity of the capacity market, while
also allowing customers to receive resource adequacy benefits from
state supported resources in the capacity market.
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    \1\ Commission staff is aware that the New England Power Pool
Participants Committee and Markets Committee have conducted several
meetings on wholesale markets and state public policy issues, and on
August 18, 2016, PJM held a meeting to ``address public policy goals
and market efficiency.'' Further, NYISO has initiated within its
Budget and Priorities Working Group a discussion of integrating
public policy in its markets.
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    Commission staff takes this opportunity to foster further
discussion regarding the development of regional solutions in the
Eastern RTOs/ISOs that reconcile the competitive market framework with
the increasing interest by states to support particular resources or
resource attributes. In particular, Commission staff seeks to discuss
long-term expectations regarding the relative roles of wholesale
markets and state policies in the Eastern RTOs/ISOs in shaping the
quantity and composition of resources needed to cost-effectively meet
future reliability and operational needs. At one end of the spectrum,
state policies would be satisfied through the wholesale energy and
capacity markets. At the other end of the spectrum, state policies
would be achieved outside of the wholesale markets, and the wholesale
markets would be designed to avoid conflict with those state policies.
There are numerous alternatives between these two ends of the spectrum.
As part of this discussion, Commission staff seeks to understand the
pros and cons of the various alternatives in the Eastern RTOs/ISOs. In
the end, Commission staff seeks to understand the potential for
sustainable wholesale market designs that both preserve the benefits of
regional markets and respect state policies.
    Supplemental notices will be issued prior to the technical
conference with further details regarding the agenda, speakers and
organization of the technical conference.
    Those wishing to participate in this conference should submit a
nomination form online by 5:00 p.m. on March 17, 2017 at: https://www.ferc.gov/whats-new/registration/05-01-17-speaker-form.asp.
    All interested persons may attend the conference, and registration
is not required. However, in-person attendees are encouraged to
register on-line at: https://www.ferc.gov/whats-new/registration/05-01-17-form.asp.
    The technical conference will be transcribed and there will be a
free webcast of the conference. The webcast will allow persons to
listen to the technical conference, but not participate. Transcripts
will be available immediately for a fee from Ace Reporting Company at
(202) 347-3700.
    Anyone with Internet access who wants to listen to the conference
can do so by navigating to www.ferc.gov's Calendar of Events and
locating the technical conference in the Calendar. The technical
conference will contain a link to its webcast. The Capitol Connection
provides technical support for the webcast and offers the option of
listening to the meeting via phone-bridge for a fee. If you have any
questions, visit

www.CapitolConnection.org or call<PHONE_NUMBER>.
    FERC conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations please
send an email to<EMAIL_ADDRESS>or call toll free (866) 208-
3372 (voice) or<PHONE_NUMBER> (TTY), or send a fax to<PHONE_NUMBER>
with the requested accommodations.

For Further Information Please Contact Individuals Identified for Each
Topic

    Technical Information: Amr Ibrahim, Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street NE.,
Washington, DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>    Legal Information: Kent Carter, Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    Logistical Information: Sarah McKinley, Office of External Affairs,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>
    Dated: March 3, 2017.
Kimberly D. Bose,
Secretary.
[FR Doc. 2017-04719 Filed 3-9-17; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 50916-50917]
[FR Doc No: 2018-21942]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL19-2-000]

Notice of Complaint: Tipmont Rural Electric Member Cooperative v.
Wabash Valley Power Authority

    Take notice that on October 1, 2018, pursuant to sections 206 and
306 of the Federal Power Act, 16 U.S.C. 824e and 825e and Rule 206 of
the Federal Energy Regulatory Commission's (Commission) Rules of
Practice and Procedure, 18 CFR 385.206, Tipmont Rural Electric Member
Cooperative (Complainant) filed a formal complaint against Wabash
Valley Power Authority (Respondent) requesting that the Commission find
that the Complainant may terminate services early under its wholesale
requirements power sales agreements with the Respondent, subject to the
Complaint paying any stranded cost that Respondent may incur as a
result of such early termination, all as more fully explained in the
complaint.
    The Complainant certifies that copies of the complaint were served
on the contacts for Respondent, as listed on the Commission's list of
Corporate Officials, to the extent such officials remain at Wabash
Valley.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will

not serve to make protestants parties to the proceeding. Any person
wishing to become a party must file a notice of intervention or motion
to intervene, as appropriate. The Respondent's answer and all
interventions, or protests must be filed on or before the comment date.
The Respondent's answer, motions to intervene, and protests must be
served on the Complainants.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the eFiling link at http://www.ferc.gov. Persons unable to file electronically should submit an
original and 5 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
eLibrary link and is available for electronic review in the
Commission's Public Reference Room in Washington, DC. There is an
eSubscription link on the website that enables subscribers to receive
email notification when a document is added to a subscribed docket(s).
For assistance with any FERC Online service, please email
[email protected], or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern Time on October 22, 2018.

    Dated: October 3, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-21942 Filed 10-9-18; 8:45 am]
 BILLING CODE 6717-01-P


population of less than 50,000.
    The SBA also stipulates in its size standards of how large an
entity may be and still be classified as a ``small entity.'' These
small business size standards are matched to industries described in
the North American Industry Classification System (NAICS) to determine
if an entity is considered small.
    This proposed rule does not place any requirements on small
entities. It does, however, offer them an alternative means to dispute
FEMA's determination for PA eligibility. If the entity chooses to
dispute a PA determination, and they select arbitration rather than a
second appeal, they would be responsible for their share of the cost of
the arbitration process.
    All small entities would have to meet the proposed requirements to
be eligible for arbitration. FEMA identified 3,778 applicants for
FEMA's PA Program that would be eligible for arbitration under the
proposed requirements for the time frame from 2009 through 2017. FEMA
used Slovin's formula and a 90 percent confidence interval to determine
the sample size.\31\ FEMA sampled 97 of these applicants and found that
73 (75 percent) met the definition of a small entity based on the
population size of local governments (less than 50,000 population),\32\
or PNPs based on size standards set by the SBA.\33\ The remaining 24
entities were not found to be considered as small entities. Eligible
small entities included 70 small government agencies and three PNP
organizations. Based on information presented in the Executive Orders
12866 and 13563, FEMA estimates 12 arbitration cases per year. If 75
percent of these are small entities, FEMA estimates 9 arbitration
requests per year from small entities with an average cost of between
$13,190 and $22,460 per case. Nine small entities may not represent a
substantial number of small entities impacted by this proposed rule and
FEMA does not believe the costs imposed to these small entities are
significant. FEMA welcomes any comments from the public on the number
of small entities presented in this analysis and any impacts imposed
onto them by this proposed rule.
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    \31\ Slovin's formula is n = N/(1 + N *e [caret]2). Therefore,
3,778/(1 + 3,778 * 0.1[caret]2) = 97 (rounded).
    \32\ Information on population sizes was obtained using the U.S.
Census Bureau's City and Town Population Totals 2010-2018. Available
at https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-cities-and-towns.html.
    \33\ Small Business Administration. ``Table of Size Standards''
(.xlxs). Available at https://www.sba.gov/document/support--table-size-standards. Revenue and employment information for individual
PNP's was obtained from PNP websites.
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4. A Description of the Projected Reporting, Recordkeeping and Other
Compliance Requirements of the Proposed Rule, Including an Estimate of
the Classes of Small Entities Which Will Be Subject to the Requirement
and the Type of Professional Skills Necessary for Preparation of the
Report or Record
    Arbitration--As an alternative to the appeal process, applicants
may request arbitration of the disputed determination. To be eligible
for Section 423 arbitration, a PA applicant's request must meet all
three of the following conditions: (1) The amount in dispute arises
from a disaster declared after January 1, 2016; (2) the disputed amount
exceeds $500,000 (or $100,000 if the applicant is in a ``rural area,''
defined as having a population of less than 200,000 living outside an
urbanized area); and (3) the applicant submitted a first appeal with
FEMA pursuant to the requirements established in 44 CFR 206.206.
    The applicant must submit a Request for Arbitration to the
recipient, CBCA, and FEMA. The Request for Arbitration must contain a
written statement, which specifies the amount in dispute, all
documentation supporting the position of the applicant, the disaster
number, and the name and address of the applicant's authorized
representative or counsel. FEMA estimates that it would take an
applicant 2 hours to complete the Request for Arbitration (these 2
hours are accounted for in the economic analysis through the 47 hours
of hearing preparation time for applicants) with a wage rate of $86.96
for a general and operations manager. FEMA estimates the opportunity
cost of time for completing the request would be $173.92 per applicant.
With an estimated 9 cases per year, FEMA estimates the total burden for
completing the request at $1,565 per year. The person completing the
request would need to be familiar with PA regulations and policies.
5. An Identification, to the Extent Practicable, of all Relevant
Federal Rules Which May Duplicate, Overlap, or Conflict With the
Proposed Rule
    FEMA's regulations on appeals, found at 44 CFR 206.206, are still
in effect and provide the required process for submitting first and
second appeals.\34\ Applicants must submit a request for a first appeal
prior to submitting a request for arbitration. Applicants may submit a
request for arbitration or a second appeal, but not both.
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    \34\ A link to the current Fact Sheet: https://www.fema.gov/media-library/assets/documents/175821. Accessed May 15, 2020.
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    Section of 1219 of DRRA requires CBCA to conduct the arbitrations.
Accordingly, applicants that request arbitration to dispute a FEMA
determination must also meet the CBCA electronic submission
requirement.
    There are overlapping provisions between FEMA's proposed rule and
CBCA's final rule.\35\ Applicants should also see CBCA regulations at
48 CFR parts 6101 and 6106 for additional procedures for requesting
arbitration.
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    \35\ A copy of CBCA's final rule can be found online at: https://www.govinfo.gov/content/pkg/FR-2019-06-21/pdf/2019-13081.pdf.
Accessed July 22, 2019.
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6. A Description of Any Significant Alternatives to the Proposed Rule
Which Accomplish the Stated Objectives of Applicable Statutes and Which
Minimize Any Significant Economic Impact of the Proposed Rule on Small
Entities
    The alternatives included: (1) Using another definition for
``rural'' and (2) not requiring electronic submission.
    FEMA considered using OMB's nonmetropolitan area definition as an
alternate definition of the term ``rural.'' OMB's nonmetropolitan area
is defined as areas outside the boundaries of metropolitan areas and
are further subdivided into two types:
    1. Micropolitan (micro) areas, which are nonmetro labor-market
areas centered on urban clusters of 10,000-49,999 persons and defined
with the same criteria used to define metro areas.
    2. All remaining counties, often labeled ``noncore'' counties
because they are not part of ``core-based'' metro or micro areas.
    OMB defines metropolitan areas to include:
    1. Central counties with one or more urbanized areas; urbanized
areas are densely-settled urban entities with 50,000 or more people.
    2. Outlying counties that are economically tied to the core
counties

as measured by labor-force commuting. Outlying counties are included if
25 percent of workers living in the county commute to the central
counties, or if 25 percent of the employment in the county consists of
workers coming out from the central counties--the so-called ``reverse''
commuting pattern.
    FEMA did not recommend using the OMB's definition as it combines
rural area populations into Metropolitan counties. The OMB definition
would also result in some rural areas such as the Grand Canyon being
considered a metropolitan county. This alternative would not result in
reducing the impact on small entities while accomplishing the stated
objective of the rule.
    FEMA considered not requiring electronic submission. Current
practices allow FEMA to accept physical mail for appeals. In addition,
FEMA currently accepts electronic submissions for requests for
arbitration under 44 CFR 206.209. As CBCA provided an electronic
address for applicants to submit their request for arbitration and
documentation, applicants must use electronic method if they choose the
arbitration process. Thus, FEMA believes requiring electronic
submission would not pose an additional undue burden on applicants that
are considered small entities.
Conclusion
    FEMA is interested in the potential impacts from this rule on small
businesses and requests public comment on these potential impacts. If
you think that this rule will have a significant economic impact on
you, your business, or organization, please submit a comment to the
docket at the address under ADDRESSES in this proposed rule. In your
comment, explain why, how, and to what degree you think this rule will
have an economic impact. FEMA does not believe this proposed rule will
have a significant economic impact on a substantial number of small
entities. However, FEMA is publishing this IRFA to aid the public in
commenting on the potential small business impacts of the proposed
requirements in this NPRM. FEMA invites all interested parties to
submit data and information regarding the potential economic impact on
small entities that would result from the adoption of this NPRM.

C. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 658, 1501-1504,
1531-1536, 1571 (the Act), pertains to any notice of proposed
rulemaking which implements any rule that includes a Federal mandate
that may result in the expenditure by State, local, and Tribal
governments, in the aggregate, or by the private sector, of $100
million (adjusted annually for inflation) or more in any one year. If
the rulemaking includes a Federal mandate, the Act requires an agency
to prepare an assessment of the anticipated costs and benefits of the
Federal mandate. The Act also pertains to any regulatory requirements
that might significantly or uniquely affect small governments. Before
establishing any such requirements, an agency must develop a plan
allowing for input from the affected governments regarding the
requirements. Exemptions from the Act are found at 2 U.S.C. 1503, they
include any regulation or proposed regulation that ``provides for
emergency assistance or relief at the request of any State, local, or
tribal government or any official of a State, local, or tribal
government.'' Thus, FEMA finds this rule to be exempt from the Act.
    Additionally, FEMA has determined that this rule would not result
in the expenditure by State, local, and Tribal governments, in the
aggregate, nor by the private sector, of $100 million or more (adjusted
annually for inflation) in any one year because of a Federal mandate,
and it would not significantly or uniquely affect small governments.
Therefore, no actions are deemed necessary under the provisions of the
Unfunded Mandates Reform Act of 1995.

D. Paperwork Reduction Act of 1995

    As required by the Paperwork Reduction Act of 1995 (PRA), Public
Law 104-13, 109 Stat. 163, (May 22, 1995) (44 U.S.C. 3501 et seq.), an
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
    In this proposed rule, FEMA is seeking a revision to the already
existing collection of information, OMB Control Number 1660-0017. The
annual cost to the Federal Government is decreasing from $1,920,626 to
$1,890,650. The decrease to the cost to the Federal Government occurred
since we deleted $29,976 in arbitration travel costs; as, we do not
have to include them per the PRA exceptions for civil & administrative
actions. See 44 U.S.C. 3518(c). This proposed rule serves as the 60-day
comment period for this proposed change pursuant to 5 CFR 1320.12. FEMA
invites the public to comment on the proposed collection of
information.
Collection of Information
    Title: PA Program.
    Type of information collection: Revision of a currently approved
collection.
    OMB Number: 1660-0017.
    Form Forms: FEMA Form 009-0-49 Request for Public Assistance; FEMA
Form 009-0-91 Project Worksheet (PW); FEMA Form 009-0-91A Project
Worksheet (PW)--Damage Description and Scope of Work Continuation
Sheet; FEMA Form 009-0-91B Project Worksheet (PW)--Cost Estimate
Continuation Sheet; FEMA Form 009-0-91C Project Worksheet (PW)--Maps
and Sketches Sheet; FEMA Form 009-0-91D Project Worksheet (PW)--Photo
Sheet; FEMA Form 009-0-120 Special Considerations Questions; FEMA Form
009-0-121 PNP Facility Questionnaire; FEMA Form 009-0-123 Force Account
Labor Summary Record; FEMA Form 009-0-124 Materials Summary Record;
FEMA Form 009-0-125 Rented Equipment Summary Record; FEMA Form 009-0-
126 Contract Work Summary Record; FEMA Form 009-0-127 Force Account
Equipment Summary Record; FEMA Form 009-0-128 Applicant's Benefits
Calculation Worksheet; FEMA Form 009-0-111, Quarterly Progress Report;
FEMA Form 009-0-141, FAC-TRAX System.
    Abstract: The information collected is utilized by FEMA to make
determinations for PA grants based on the information supplied by the
respondents.
    Affected Public: State, local, or Tribal Government.
    Estimated Number of Respondents: 1,012.
    Estimated Number of Responses: 398,068.
    Estimated Total Annual Burden Hours: 466,025.
    The proposed rule to implement section 423 arbitration would not
impact the total number of responses or burden hours. FEMA proposes to
add a new paragraph to 44 CFR 206.206 to add a right of arbitration for
applicants. The proposed regulation would provide applicants an
additional choice in FEMA's appeals and arbitration processes:
Applicants must choose either submitting a second appeal or submitting
a request for arbitration. Or, an applicant may select arbitration if
the Regional Administrator has received a first appeal, but has not
rendered a decision within 180 calendar days of receipt. There is no
change to the number of responses due to the proposed rule, as
applicants can only choose one option.
    FEMA estimated it will take approximately 2 hours to prepare a
letter for appeal or arbitration. This estimate is based on the
assumption that

most of the information necessary for preparing the appeal or
arbitration request is found in the existing Project Worksheet.
    Recipients will also provide a recommendation per each applicant
request for an appeal or arbitration. The total number of
recommendations would not change because of the proposed rule. FEMA
estimates it will take approximately 1 hour to prepare a
recommendation.
    Currently, the estimated time to complete a request and submit a
letter of recommendation for an appeal is three hours. FEMA also
estimates the time to complete a request and submit a letter of
recommendation for arbitration would also be three hours. The applicant
could re-use the same information from the request for an appeal or
arbitration and the recipient would review similar information in
providing its recommendation. The proposed rule would not impact the
estimate of the burden hours.
    Table A.12 provides estimates of annualized cost to respondents for
the hour burdens for the collection of information.

                                                       Estimated Annualized Burden Hours and Costs
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                                                                             Number of                Avg. burden     Total                     Total
                                                                Number of    responses    Total No.       per         annual    Avg. hourly     annual
        Type of respondent              Form name/form No.     respondents      per           of        response   burden  (in   wage rate    respondent
                                                                             respondent   responses    (in hours)     hours)                     cost
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State, Local or Tribal Government.  FEMA Form 009-0-49,                 56          129        7,224         0.25        1,806       $63.52     $114,717
                                     Request for PA/.
State, Local or Tribal Government.  FEMA Form 009-0-91,                 56          840       47,040         1.50       70,560        63.52    4,481,971
                                     Project Worksheet (PW)
                                     and a Request for Time
                                     Extension.
State, Local or Tribal Government.  FEMA Form 009-0-91A                 56          784       43,904         1.50       65,856        63.52    4,183,173
                                     Project Work Sheet (PW)
                                     Damage Description and
                                     Scope of Work.
                                    FEMA Form 009-0-91B,                56          784       43,904       1.3333       58,537        63.52    3,718,283
                                     Project Worksheet (PW)
                                     Cost Estimate
                                     Continuation Sheet and
                                     Request for additional
                                     funding for Cost
                                     Overruns.
State, Local or Tribal Government.  FEMA Form 009-0-91C                 56          728       40,768         1.50       61,152        63.52    3,884,375
                                     Project Worksheet (PW)
                                     Maps and Sketches Sheet.
State Local or Tribal Government..  FEMA Form 009-0-91D                 56          728       40,768         1.50       61,152        63.52    3,884,375
                                     Project Worksheet (PW)
                                     Photo Sheet.
State, Local or Tribal Government.  FEMA Form 009-0-120,                56          840       47,040         0.50       23,520        63.52    1,493,990
                                     Special Considerations
                                     Questions/.
State, Local or Tribal Government.  FEMA Form 009-0-128,                56          784       43,904         0.50       21,952        63.52    1,394,391
                                     Applicant's Benefits
                                     Calculation Worksheet/.
State, Local or Tribal Government.  FEMA Form 009-0-121, PNP            56           94        5,264         0.50        2,632        63.52      167,185
                                     Facility Questionnaire.
State, Local or Tribal Government.  FEMA Form 009-0-123,                56           94        5,264         0.50        2,632        63.52      167,185
                                     Force Account Labor
                                     Summary Record.
State, Local or Tribal Government.  FEMA Form 009-0-124,                56           94        5,264         0.25        1,316        63.52       83,592
                                     Materials Summary Record/
                                     .
State, Local or Tribal Government.  FEMA Form 009-0-125,                56           94        5,264         0.50        2,632        63.52      167,185
                                     Rented Equipment Summary
                                     Record.
State, Local or Tribal Government.  FEMA Form 009-0-126,                56           94        5,264         0.50        2,632        63.52      167,185
                                     Contract Work Summary
                                     Record/.
State, Local or Tribal Government.  FEMA Form 009-0-127,                56           94        5,264         0.25        1,316        63.52       83,592
                                     Force Account Equipment
                                     Summary Record/.
State, Local or Tribal Government.  State Administrative Plan           56            1           56         8.00          448        63.52       28,457
                                     and State Plan
                                     Amendments/No Form.
State, Local or Tribal Government.  FEMA Form 009-0-111,                56            4          224       100.00       22,400        63.52    1,422,848
                                     Quarterly Progress
                                     Report.
State, Local or Tribal Government.  Request for Appeals or              56            9          504         3.00        1,512        63.52       96,042
                                     Arbitrations &
                                     Recommendation/No Forms.
State, Local or Tribal Government.  Request for Arbitration &            4            5           20         3.00           60        63.52        3,811
                                     Recommendation resulting
                                     from Hurricanes Katrina
                                     or Rita/No Form.
State, Local or Tribal Government.  FEMA Form 009-0-141, FAC-           56          913       51,128         1.25       63,910        63.52    4,059,563
                                     TRAX System.
                                                              ------------------------------------------------------------------------------------------
    Total.........................  .........................        1,012  ...........      398,068  ...........      466,025  ...........   29,601,921
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The ``Avg. Hourly Wage Rate'' for each respondent includes a 1.46 multiplier to reflect a fully-loaded wage rate.

    Estimated Total Annual Respondent Cost: $29,601,921.
    Estimated Respondents' Operation and Maintenance Costs: N/A.
    Estimated Respondents' Capital and Start-Up Costs: N/A.
    Estimated Total Annual Costs to the Federal Government: $1,890,650.

E. Privacy Act

    Under the Privacy Act of 1974, 5 U.S.C. 552a, an agency must
determine whether implementation of a proposed regulation will result
in a system of records. A ``record'' is any item, collection, or
grouping of information about an individual that is maintained by an
agency, including, but not limited to, his/her education, financial
transactions, medical history, and criminal or employment history and
that contains his/her name, or the identifying number, symbol, or other
identifying particular assigned to the individual, such as a finger or
voice print or a photograph. See 5 U.S.C. 552a(a)(4). A ``system of
records'' is a group of records under the control of an agency from
which information is retrieved by the name of the individual or by some
identifying number, symbol, or other identifying particular assigned to
the individual. An agency cannot disclose any record which is contained
in a system of records except by following specific procedures.

    In accordance with DHS policy, FEMA has completed a Privacy
Threshold Analysis (PTA) for this proposed rule. DHS has determined
that this proposed rulemaking does not affect the 1660-0017 OMB Control
Number's current compliance with the E-Government Act of 2002 or the
Privacy Act of 1974, as amended. As a result, DHS has concluded that
the 1660-0017 OMB Control Number is covered by the DHS/FEMA/PIA-013
Grants Management Programs Privacy Impact Assessment (PIA).
Additionally, DHS has decided that the 1660-0017 OMB Control Number is
covered by the DHS/FEMA--009 Hazard Mitigation, Disaster Public
Assistance, and Disaster Loan Programs System of Records, 79 FR 16015,
Mar. 24, 2014 System of Records Notice (SORN).

F. National Environmental Policy Act of 1969 (NEPA)

    Section 102 of the National Environmental Policy Act of 1969
(NEPA), 83 Stat. 852 (Jan. 1, 1970) (42 U.S.C. 4321 et seq.) requires
agencies to consider the impacts of their proposed actions on the
quality of the human environment. The Council on Environmental
Quality's (CEQ) procedures for implementing NEPA, 40 CFR parts 1500
through 1508, require Federal agencies to prepare Environmental Impact
Statements (EISs) for major Federal actions significantly affecting the
quality of the human environment. Each agency can develop categorical
exclusions (catexes) to cover actions that have been demonstrated to
not typically trigger significant impacts to the human environment
individually or cumulatively. Agencies develop environmental
assessments (EAs) to evaluate those actions that are ineligible for an
agency's catexes and which have the potential to significantly impact
the human environment. At the end of the EA process, the agency will
determine whether to make a Finding of No Significant Impact (FONSI) or
whether to initiate the EIS process.
    Rulemaking is a major Federal action subject to NEPA. The list of
catexes at DHS Instruction Manual 023-01-001-01 (Revision 01),
``Implementation of the National Environmental Policy Act (NEPA),''
Appendix A, includes a catex for the promulgation of certain types of
rules, including rules that implement, without substantive change,
statutory or regulatory requirements and rules that interpret or amend
an existing regulation without changing its environmental effect.
(Catex A3(b) and (d)).
    The purpose of this rule is to propose regulations to implement the
new right of arbitration authorized by the DRRA, and to revise FEMA's
regulations regarding first and second PA appeals. These changes are to
implement statutory requirements and to amend existing regulation
without changing its environmental effect, consistent with Catex A3, as
defined in DHS Instruction Manual 023-01-001-01 (Rev. 01), Appendix A.
No extraordinary circumstances exist that will trigger the need to
develop an EA or EIS. See DHS Instruction Manual 023-01-001-01 V(B)(2).
An EA will not be prepared because a catex applies to this rulemaking
action and no extraordinary circumstances exist.

G. Executive Order 13175, Consultation and Coordination With Indian
Tribal Governments

    Executive Order 13175, ``Consultation and Coordination With Indian
Tribal Governments,'' 65 FR 67249, Nov. 9, 2000, applies to agency
regulations that have Tribal implications, that is, regulations that
have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal Government and Indian Tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian Tribes. Under this Executive Order, to the extent
practicable and permitted by law, no agency will promulgate any
regulation that has Tribal implications, that imposes substantial
direct compliance costs on Indian Tribal governments, and that is not
required by statute, unless funds necessary to pay the direct costs
incurred by the Indian Tribal government or the Tribe in complying with
the regulation are provided by the Federal Government, or the agency
consults with Tribal officials.
    The purpose of this rule is to propose regulations to implement the
new right of arbitration authorized by 42 U.S.C. 5189a(d) and to revise
FEMA's regulations regarding first and second PA appeals. Current
regulations at 44 CFR 206.206 only provide regulatory guidance on a
first and second PA appeal process, but not arbitration. The other
major proposed revisions to 44 CFR 206.206 include adding definitions;
adding subparagraphs to clarify what actions FEMA may take and will not
take while an appeal is pending and state that FEMA may issue separate
guidance as necessary, similar to current 44 CFR 206.209(m); adding a
finality of decision paragraph; requiring electronic submission for
appeals and arbitrations documents; and clarifying overall timeframe
limits for first and second appeals.
    Under the proposed rule, Indian Tribes have the same opportunity to
participate in arbitrations as other eligible applicants; however,
given the participation criteria required under 42 U.S.C. 5189a(d) and
its voluntary nature, FEMA anticipates a very small number, if any
Indian Tribes, will participate in the new proposed permanent right of
arbitration. FEMA also anticipates a very small number of Indian Tribes
will be affected by the other major revisions to 44 CFR 206.206. As a
result, FEMA does not expect this proposed rule to have a substantial
direct effect on one or more Indian tribes or impose direct compliance
costs on Indian Tribal governments. Additionally, since FEMA
anticipates a very small number, if any Indian Tribes will participate
in the arbitration portion of the proposed rule nor will be affected by
the rest of the proposed revisions to 44 CFR 206.206, FEMA does not
expect the regulations to have substantial direct effects on the
relationship between the Federal Government and Indian Tribes or on the
distribution of power and responsibilities between the Federal
Government and Indian Tribes.

H. Executive Order 13132, Federalism

    A rule has implications for federalism under Executive Order 13132
``Federalism'' (64 FR 43255, Aug. 10, 1999), if it has a substantial
direct effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government. FEMA has
analyzed this proposed rule under Executive Order 13132 and determined
that it does not have implications for federalism.

I. Executive Order 12630, Taking of Private Property

    This rule will not effect a taking of private property or otherwise
have taking implications under Executive Order 12630, ``Governmental
Actions and Interference With Constitutionally Protected Property
Rights'' (53 FR 8859, Mar. 18, 1988).

J. Executive Order 12898, Environmental Justice

    Executive Order 12898 ``Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations'' (59 FR
7629, Feb. 16, 1994), mandates that Federal agencies identify and
address, as appropriate, disproportionately high and adverse human
health or environmental effects of their programs, policies, and
activities on minority and

low-income populations. It requires each Federal agency to conduct its
programs, policies, and activities that substantially affect human
health or the environment in a manner that ensures that those programs,
policies, and activities do not have the effect of excluding persons
from participation in, denying persons the benefit of, or subjecting
persons to discrimination because of their race, color, or national
origin or income level.
    The purpose of this rule is to propose regulations to implement the
new right of arbitration authorized by the DRRA in 42 U.S.C. 5189a(d)
and to revise FEMA's regulations regarding first and second PA appeals.
Current regulations, at 44 CFR 206.206, only provide regulatory
guidance on a first and second PA appeal process, but not arbitration.
The other major proposed revisions to 44 CFR 206.206 include adding
definitions; adding subparagraphs to clarify what actions FEMA may take
and will not take while an appeal is pending and state that FEMA may
issue separate guidance as necessary, similar to current 44 CFR
206.209(m); adding a finality of decision paragraph; requiring
electronic submission for appeals and arbitrations documents; and
clarifying overall timeframe limits for first and second appeals. There
are no adverse effects and no disproportionate effects on minority or
low-income populations.

K. Executive Order 12988, Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, ``Civil Justice Reform'' (61 FR 4729,
Feb. 7, 1996), to minimize litigation, eliminate ambiguity, and reduce
burden.

L. Executive Order 13045, Protection of Children From Environmental
Health Risks and Safety Risks

    This proposed rule will not create environmental health risks or
safety risks for children under Executive Order 13045, ``Protection of
Children From Environmental Health Risks and Safety Risks'' (62 FR
19885, Apr. 23, 1997).

M. Congressional Review of Agency Rulemaking

    Under the Congressional Review of Agency Rulemaking Act (CRA), 5
U.S.C. 801-808, before a rule can take effect, the Federal agency
promulgating the rule must submit to Congress and to the Government
Accountability Office (GAO) a copy of the rule; a concise general
statement relating to the rule, including whether it is a major rule;
the proposed effective date of the rule; a copy of any cost-benefit
analysis; descriptions of the agency's actions under the Regulatory
Flexibility Act and the Unfunded Mandates Reform Act; and any other
information or statements required by relevant executive orders.
    FEMA will send this rule to the Congress and to GAO pursuant to the
CRA, if the rule is finalized. The rule is not a ``major rule'' within
the meaning of the CRA. It will not have an annual effect on the
economy of $100,000,000 or more; it will not result in a major increase
in costs or prices for consumers, individual industries, Federal,
State, or local government agencies, or geographic regions; and it will
not have significant adverse effects on competition, employment,
investment, productivity, innovation, or on the ability of United
States-based enterprises to compete with foreign-based enterprises in
domestic and export markets.

List of Subjects in 44 CFR Part 206

    Administrative practice and procedure, Coastal zone, Community
facilities, Disaster assistance, Fire prevention, Grant programs-
housing and community development, Housing, Insurance,
Intergovernmental relations, Loan programs-housing and community
development, Natural resources, Penalties, Reporting and recordkeeping
requirements.

    For the reasons stated in the preamble, the Federal Emergency
Management Agency proposes to amend 44 CFR part 206 as follows:

PART 206--FEDERAL DISASTER ASSISTANCE

0
1. The authority citation for part 206 continues to read as follows:

    Authority:  Robert T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121 through 5207; Homeland Security Act
of 2002, 6 U.S.C. 101 et seq.; Department of Homeland Security
Delegation 9001.1.

0
2. Revise Sec.  206.206 to read as follows:

Sec.  206.206   Appeals and arbitrations.

    (a) Definitions. The following definitions apply to this section:
    Administrator means the Administrator of the Federal Emergency
Management Agency.
    Amount in dispute means the difference between the amount of
financial assistance sought for a Public Assistance project and the
amount of financial assistance for which FEMA has determined such
Public Assistance project is eligible.
    Applicant refers to the definition at Sec.  206.201(a).
    Final agency determination means: (1) The decision of FEMA, if the
applicant or recipient does not submit a first appeal within the time
limits provided for in paragraph (b)(1)(ii)(A) of this section; or
    (2) The decision of FEMA, if the applicant or recipient withdraws
the pending appeal and does not file a request for arbitration within
30 calendar days of the withdrawal of the pending appeal; or
    (3) The decision of the FEMA Regional Administrator, if the
applicant or recipient does not submit a second appeal within the time
limits provided for in paragraph (b)(2)(ii)(A) of this section.
    Recipient refers to the definition at Sec.  206.201(m).
    Rural area means an area with a population of less than 200,000
outside an urbanized area.
    Urbanized area means the area as identified by the United States
Census Bureau.
    (b) Appeals and Arbitrations. An eligible applicant or recipient
may appeal or an eligible applicant may arbitrate any determination
previously made related to an application for or the provision of
Public Assistance according to the procedures of this section.
    (1) First Appeal. The applicant must make a first appeal in writing
and submit it electronically through the recipient to the Regional
Administrator. The recipient must include a written recommendation on
the applicant's appeal with the electronic submission of the
applicant's first appeal to the Regional Administrator. The recipient
may make recipient-related appeals to the Regional Administrator.
    (i) Content. A first appeal must:
    (A) Contain all documented justification supporting the applicant
or recipient's position;
    (B) Specify the amount in dispute, as applicable; and
    (C) Specify the provisions in Federal law, regulation, or policy
with which the applicant or recipient believes the FEMA determination
was inconsistent.
    (ii) Time Limits. (A) The applicant may make a first appeal through
the recipient within 60 calendar days from the date of the FEMA
determination that is the subject of the appeal and the recipient must
electronically forward to the Regional Administrator the applicant's
first appeal with a recommendation within 120 calendar days from the
date of the FEMA determination that is the subject of the appeal. FEMA
will deny all first appeals it receives from the recipient more than
120 calendar days from the date of the

FEMA determination that is the subject of the appeal.
    (B) Within 90 calendar days following receipt of a first appeal, if
there is a need for additional information, the Regional Administrator
will provide electronic notice to the recipient and applicant. If there
is no need for additional information, then FEMA will not provide
notification. The Regional Administrator will generally allow the
recipient 30 calendar days to provide any additional information.
    (C) The Regional Administrator will provide electronic notice of
the disposition of the appeal to the applicant and recipient within 90
calendar days of receipt of the appeal or within 90 calendar days
following the receipt of additional information or following expiration
of the period for providing the information.
    (iii) Technical Advice. In appeals involving highly technical
issues, the Regional Administrator may, at his or her discretion,
submit the appeal to an independent scientific or technical person or
group having expertise in the subject matter of the appeal for advice
or recommendation. The period for this technical review may be in
addition to other allotted time periods. Within 90 calendar days of
receipt of the report, the Regional Administrator will provide
electronic notice of the disposition of the appeal to the recipient and
applicant.
    (iv) Effect of an Appeal. (A) FEMA will take no action to implement
any determination pending an appeal decision from the Regional
Administrator, subject to the exceptions in paragraph (b)(1)(iv)(B) of
this section.
    (B) Notwithstanding paragraph (b)(1)(iv)(A) of this section, FEMA
may:
    (1) Suspend funding (see 2 CFR 200.338);
    (2) Defer or disallow other claims questioned for reasons also
disputed in the pending appeal; or
    (3) Take other action to recover, withhold, or offset funds if
specifically authorized by statute or regulation.
    (v) Implementation. If the Regional Administrator grants an appeal,
the Regional Administrator will take appropriate implementing
action(s).
    (vi) Guidance. FEMA may issue separate guidance as necessary to
supplement paragraph (b)(1) of this section.
    (2) Second Appeal. If the Regional Administrator denies a first
appeal in whole or in part, the applicant may make a second appeal in
writing and submit it electronically through the recipient to the
Assistant Administrator for the Recovery Directorate. The recipient
must include a written recommendation on the applicant's appeal with
the electronic submission of the applicant's second appeal to the
Assistant Administrator for the Recovery Directorate. The recipient may
make recipient-related second appeals to the Assistant Administrator
for the Recovery Directorate.
    (i) Content. A second appeal must:
    (A) Contain all documented justification supporting the applicant
or recipient's position;
    (B) Specify the amount in dispute, as applicable; and
    (C) Specify the provisions in Federal law, regulation, or policy
with which the applicant or recipient believes the FEMA determination
was inconsistent.
    (ii) Time Limits. (A) If the Regional Administrator denies a first
appeal in whole or in part, the applicant may make a second appeal
through the recipient within 60 calendar days from the date of the
Regional Administrator's first appeal decision and the recipient must
electronically forward to the Assistant Administrator for the Recovery
Directorate the applicant's second appeal with a recommendation within
120 calendar days from the date of the Regional Administrator's first
appeal decision. FEMA will deny all second appeals it receives from the
recipient more than 120 calendar days from the date of the Regional
Administrator's first appeal decision.
    (B) Within 90 calendar days following receipt of a second appeal,
if there is a need for additional information, the Assistant
Administrator for the Recovery Directorate will provide electronic
notice to the recipient and applicant. If there is no need for
additional information, then FEMA will not provide notification. The
Assistant Administrator for the Recovery Directorate will generally
allow the recipient 30 calendar days to provide any additional
information.
    (C) The Assistant Administrator for the Recovery Directorate will
provide electronic notice of the disposition of the appeal to the
recipient and applicant within 90 calendar days of receipt of the
appeal or within 90 calendar days following the receipt of additional
information or following expiration of the period for providing the
information.
    (iii) Technical Advice. In appeals involving highly technical
issues, the Assistant Administrator for the Recovery Directorate may,
at his or her discretion, submit the appeal to an independent
scientific or technical person or group having expertise in the subject
matter of the appeal for advice or recommendation. The period for this
technical review may be in addition to other allotted time periods.
Within 90 calendar days of receipt of the report, the Assistant
Administrator for the Recovery Directorate will provide electronic
notice of the disposition of the appeal to the recipient and applicant.
    (iv) Effect of an Appeal. (A) FEMA will take no action to implement
any determination pending an appeal decision from the Assistant
Administrator for the Recovery Directorate, subject to the exceptions
in paragraph (b)(2)(iv)(B) of this section.
    (B) Notwithstanding paragraph (b)(2)(iv)(A) of this section, FEMA
may
    (1) Suspend funding (see 2 CFR 200.338);
    (2) Defer or disallow other claims questioned for reasons also
disputed in the pending appeal; or
    (3) Take other action to recover, withhold, or offset funds if
specifically authorized by statute or regulation.
    (v) Implementation. If the Assistant Administrator for the Recovery
Directorate grants an appeal, the Assistant Administrator for the
Recovery Directorate will direct the Regional Administrator to take
appropriate implementing action(s).
    (vi) Guidance. FEMA may issue separate guidance as necessary to
supplement paragraph (b)(2) of this section.
    (3) Arbitration. (i) Applicability. An applicant may request
arbitration from the Civilian Board of Contract Appeals (CBCA) if:
    (A) There is a disputed agency determination arising from a major
disaster declared on or after January 1, 2016; and
    (B) The amount in dispute is greater than $500,000, or greater than
$100,000 for an applicant for assistance in a rural area; and
    (C) The Regional Administrator has denied a first appeal decision
or received a first appeal but not rendered a decision within 180
calendar days of receipt.
    (ii) Limitations. A request for arbitration is in lieu of a second
appeal.
    (iii) Request for Arbitration. (A) An applicant may initiate
arbitration by submitting an electronic request simultaneously to the
recipient, the CBCA, and FEMA. See 48 CFR part 6106.
    (B) Time Limits. (1) An applicant must submit a request for
arbitration within 60 calendar days from the date of the Regional
Administrator's first appeal decision; or
    (2) If the first appeal was timely submitted, and the Regional
Administrator has not rendered a decision within 180 calendar days of

receiving the appeal, an applicant may electronically submit a
withdrawal of the pending appeal simultaneously to the recipient, the
FEMA Regional Administrator, and the CBCA. The applicant may then
submit a request for arbitration within 30 calendar days from the date
of the withdrawal of the pending appeal.
    (C) Content of request. The request for arbitration must contain a
written statement that specifies the amount in dispute, all
documentation supporting the position of the applicant, the disaster
number, and the name and address of the applicant's authorized
representative or counsel.
    (iv) Expenses. Expenses for each party will be paid by the party
who incurred the expense.
    (v) Guidance. FEMA may issue separate guidance as necessary to
supplement paragraph (b)(3) of this section.
    (c) Finality of decision. A FEMA final agency determination or a
decision of the Assistant Administrator for the Recovery Directorate on
a second appeal constitute a final decision of FEMA. In the
alternative, a decision of the majority of the CBCA panel constitutes a
final decision, binding on all parties. See 48 CFR 6106.613. Final
decisions are not subject to further administrative review.

Pete Gaynor,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2020-16040 Filed 8-28-20; 8:45 am]
BILLING CODE 9111-19-P


[Federal Register Volume 86, Number 19 (Monday, February 1, 2021)]
[Notices]
[Pages 7751-7753]
[FR Doc No: 2021-02004]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90989; File No. SR-ICC-2021-002]

Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice Relating to the Clearance of an Additional Credit
Default Swap Contract

January 26, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4,\2\ notice is hereby given that on January 15,
2021, ICE Clear Credit LLC (``ICC'') filed with the Securities and
Exchange Commission the proposed rule change, security-based swap
submission, or advance notice as described in Items I, II and III
below, which Items have been prepared by ICC. The Commission is
publishing this notice to solicit comments on the proposed rule change,
security-based swap submission, or advance notice from interested
persons.
---------------------------------------------------------------------------

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

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice

    The principal purpose of the proposed rule change is to revise the
ICC Rulebook (the ``Rules'') to provide for the clearance of an
additional Standard Emerging Market Sovereign CDS contract (the ``EM
Contract'').

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice

    In its filing with the Commission, ICC included statements
concerning the purpose of and basis for the proposed rule change,
security-based swap submission, or advance notice and discussed any
comments it received on the proposed rule change, security-based swap
submission, or advance notice. The text of these statements may be
examined at the places specified in Item IV below. ICC 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, Security-Based Swap Submission, or
Advance Notice

(a) Purpose
    The purpose of the proposed rule change is to adopt rules that will
provide the basis for ICC to clear an additional credit default swap
contract. ICC proposes to make such change effective following
Commission approval of the proposed rule change. ICC believes the
addition of this contract will benefit the market for credit default
swaps by providing market participants the benefits of clearing,
including reduction in counterparty risk and safeguarding of margin
assets pursuant to clearing house rules. Clearing of the additional EM
Contract will not require any changes to ICC's Risk Management
Framework or other policies and procedures constituting rules within
the meaning of the Securities Exchange Act of 1934 (``Act'').
    ICC proposes amending Subchapter 26D of its Rules to provide for
the clearance of the additional EM Contract, namely Ukraine. This
additional EM Contract has terms consistent with the other EM Contracts
approved for clearing at ICC and governed by Subchapter 26D of the
Rules. A minor revision to Subchapter 26D (Standard Emerging Market
Sovereign (``SES'') Single Name) is made to provide for clearing the
additional EM Contract. Specifically, in Rule 26D-102 (Definitions),
``Eligible SES Reference Entities'' is modified to include Ukraine in
the list of specific Eligible SES Reference Entities to be cleared by
ICC.
(b) Statutory Basis
    Section 17A(b)(3)(F) of the Act \3\ requires, among other things,
that the rules of a clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities transactions and,
to the extent applicable, derivative agreements, contracts, and
transactions; to assure the safeguarding of securities and funds which
are in the custody or control of ICC or for which it is responsible;
and to comply with the provisions of the Act and the rules and
regulations thereunder. The additional EM Contract proposed for
clearing is similar to the EM Contracts currently cleared by ICC, and
will be cleared pursuant to ICC's existing clearing arrangements and
related financial safeguards, protections and risk management
procedures. Clearing of the additional EM Contract

will allow market participants an increased ability to manage risk and
ensure the safeguarding of margin assets pursuant to clearing house
rules. ICC believes that acceptance of the new EM Contract, on the
terms and conditions set out in the Rules, is consistent with the
prompt and accurate clearance and settlement of securities transactions
and derivative agreements, contracts and transactions cleared by ICC,
the safeguarding of securities and funds in the custody or control of
ICC or for which it is responsible, and the protection of investors and
the public interest, within the meaning of Section 17A(b)(3)(F) of the
Act.\4\
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78q-1(b)(3)(F).
    \4\ Id.
---------------------------------------------------------------------------

    Clearing of the additional EM Contract will also satisfy the
relevant requirements of Rule 17Ad-22,\5\ as set forth in the following
discussion.
---------------------------------------------------------------------------

    \5\ 17 CFR 240.17Ad-22.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(6)(i) \6\ requires each covered clearing agency 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, at a
minimum, considers, and produces margin levels commensurate with, the
risks and particular attributes of each relevant product, portfolio,
and market. In terms of financial resources, ICC will apply its
existing margin methodology to the new EM Contract, which is similar to
the EM Contracts currently cleared by ICC. ICC believes that this model
will provide sufficient margin requirements to cover its credit
exposure to its clearing members from clearing such contract,
consistent with the requirements of Rule 17Ad-22(e)(6)(i).\7\
---------------------------------------------------------------------------

    \6\ 17 CFR 240.17Ad-22(e)(6)(i).
    \7\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(ii) \8\ requires each covered clearing agency to
establish, implement, maintain, and enforce written policies and
procedures reasonably designed to effectively identify, measure,
monitor, and manage its credit exposures to participants and those
arising from its payment, clearing, and settlement processes, including
by maintaining additional financial resources at the minimum to enable
it to cover a wide range of foreseeable stress scenarios that include,
but are not limited to, the default of the two participant families
that would potentially cause the largest aggregate credit exposure for
the covered clearing agency in extreme but plausible market conditions.
ICC believes its Guaranty Fund, under its existing methodology, will,
together with the required initial margin, provide sufficient financial
resources to support the clearing of the additional EM Contract,
consistent with the requirements of Rule 17Ad-22(e)(4)(ii).\9\
---------------------------------------------------------------------------

    \8\ 17 CFR 240.17Ad-22(e)(4)(ii).
    \9\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(17) \10\ requires, in relevant part, each covered
clearing agency to establish, implement, maintain, and enforce written
policies and procedures reasonably designed to manage its operational
risks by (i) identifying the plausible sources of operational risk,
both internal and external, and mitigating their impact through the use
of appropriate systems, policies, procedures, and controls; and (ii)
ensuring that systems have a high degree of security, resiliency,
operational reliability, and adequate, scalable capacity. ICC believes
that its existing operational and managerial resources will be
sufficient for clearing of the additional EM Contract, consistent with
the requirements of Rule 17Ad-22(e)(17),\11\ as the new contract is
substantially the same from an operational perspective as existing
contracts.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.17Ad-22(e)(17)(i) and (ii).
    \11\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(8), (9) and (10) \12\ requires each covered
clearing agency to establish, implement, maintain, and enforce written
policies and procedures reasonably designed to define the point at
which settlement is final to be no later than the end of the day on
which payment or obligation is due and, where necessary or appropriate,
intraday or in real time; conduct its money settlements in central bank
money, where available and determined to be practical by the Board, and
minimize and manage credit and liquidity risk arising from conducting
its money settlements in commercial bank money if central bank money is
not used; and establish and maintain transparent written standards that
state its obligations with respect to the delivery of physical
instruments, and establish and maintain operational practices that
identify, monitor, and manage the risks associated with such physical
deliveries. ICC will use its existing rules, settlement procedures and
account structures for the new EM Contract, which is similar to the EM
Contracts currently cleared by ICC, consistent with the requirements of
Rule 17Ad-22(e)(8), (9) and (10) \13\ as to the finality and accuracy
of its daily settlement process and addressing the risks associated
with physical deliveries.
---------------------------------------------------------------------------

    \12\ 17 CFR 240.17Ad-22(e)(8), (9) and (10).
    \13\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(2)(i) and (v) \14\ requires each covered clearing
agency to establish, implement, maintain, and enforce written policies
and procedures reasonably designed to provide for governance
arrangements that are clear and transparent and specify clear and
direct lines of responsibility. ICC determined to accept the additional
EM Contract for clearing in accordance with its governance process,
which included review of the contract and related risk management
considerations by the ICC Risk Committee and approval by its Board.
These governance arrangements continue to be clear and transparent,
such that information relating to the assignment of responsibilities
and the requisite involvement of the ICC Board and committees is
clearly detailed in the ICC Rules and policies and procedures,
consistent with the requirements of Rule 17Ad-22(e)(2)(i) and (v).\15\
---------------------------------------------------------------------------

    \14\ 17 CFR 240.17Ad-22(e)(2)(i) and (v).
    \15\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(13) \16\ requires each covered clearing agency to
establish, implement, maintain, and enforce written policies and
procedures reasonably designed to ensure it has the authority and
operational capacity to take timely action to contain losses and
liquidity demands and continue to meet its obligations by, at a
minimum, requiring its participants and, when practicable, other
stakeholders to participate in the testing and review of its default
procedures, including any close-out procedures, at least annually and
following material changes thereto. ICC will apply its existing default
management policies and procedures for the additional EM Contract. ICC
believes that these procedures allow for it to take timely action to
contain losses and liquidity demands and to continue meeting its
obligations in the event of clearing member insolvencies or defaults in
respect of the additional single name, in accordance with Rule 17Ad-
22(e)(13).\17\
---------------------------------------------------------------------------

    \16\ 17 CFR 240.17Ad-22(e)(13).
    \17\ Id.
---------------------------------------------------------------------------

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

    The additional EM Contract will be available to all ICC
participants for clearing. The clearing of the additional EM Contract
by ICC does not preclude the offering of the additional EM Contract for
clearing by other market participants. Accordingly, ICC does not
believe that clearance of the additional EM Contract will impose any
burden on competition not necessary or

appropriate in furtherance of the purposes of the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule
Change, Security-Based Swap Submission, or Advance Notice Received From
Members, Participants or Others

    Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.

III. Date of Effectiveness of the Proposed Rule Change, Security-Based
Swap Submission, or Advance Notice 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 such 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, security-based swap submission, or advance notice 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-ICC-2021-002 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-ICC-2021-002. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change, security-based
swap submission, or advance notice that are filed with the Commission,
and all written communications relating to the proposed rule change,
security-based swap submission, or 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 10:00 a.m. and 3:00 p.m. Copies of
such filings will also be available for inspection and copying at the
principal office of ICE Clear Credit and on ICE Clear Credit's website
at https://www.theice.com/clear-credit/regulation.
    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-ICC-2021-002 and should be
submitted on or before February 22, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-02004 Filed 1-29-21; 8:45 am]
BILLING CODE 8011-01-P