[Federal Register Volume 80, Number 39 (Friday, February 27, 2015)]
[Notices]
[Pages 10704-10710]
[FR Doc No: 2015-04160]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[USCG-2011-1178]

National Preparedness for Response Exercise Program (PREP)
Guidelines

AGENCY: Coast Guard, DHS.

ACTION: Notice and request for comment.

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SUMMARY: The U.S. Coast Guard (USCG) announces that the updated draft
PREP Guidelines are available for public comment. The USCG is
publishing this notice on behalf of the National Scheduling
Coordination Committee (NSCC), which is comprised of representatives
from the USCG; Environmental Protection Agency (EPA); Pipeline and
Hazardous Materials Safety Administration (PHMSA) under the Department
of Transportation (DOT); and the Bureau of Safety and Environmental
Enforcement (BSEE) under the Department of the Interior (DOI).

DATES: Comments must reach USCG by April 28, 2015.

ADDRESSES: You may submit comments and additional materials, identified
by USCG docket number USCG-2011-1178, using any one of the following
methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail or Delivery: Docket Management Facility (M-30), U.S.
Department of Transportation, West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC 20590-0001. Deliveries
accepted between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays. The telephone number is<PHONE_NUMBER>.
    See the ``Public Participation and Request for Comments'' portion
of the SUPPLEMENTARY INFORMATION section below for further instructions
on submitting comments. To avoid duplication, please use only one of
these methods.

FOR FURTHER INFORMATION CONTACT:
    For USCG: Mr. Jonathan Smith, Office of Marine Environmental
Response Policy,<PHONE_NUMBER>.
    For BSEE: Mr. John Caplis, Oil Spill Preparedness Division, 703-
787-1364.

    For EPA: Mr. Troy Swackhammer, Office of Emergency Management,
Regulation and Implementation Division,<PHONE_NUMBER>.
    For PHMSA: Mr. Eddie Murphy, Office of Pipeline Safety, 202-366-
4595.
    For questions on viewing or submitting material to the docket: Ms.
Cheryl Collins, Program Manager, DOT Docket Operations,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Public Participation and Request for Comments

    We encourage you to participate in the revision of the PREP
Guidelines by submitting comments and related materials. All comments
received will be posted without change to http://www.regulations.gov
and will include any personal information you have provided.
    Submitting comments: If you submit a comment, please include the
docket number (USCG-2011-1178), indicate the specific section of the
PREP Guidelines to which each comment applies, and provide a reason for
each suggestion or recommendation. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. We recommend that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so that we can contact you if we have questions regarding
your submission.
    To submit your comment online, go to http://www.regulations.gov,
type ``USCG-2011-1178'' in the search box, and click ``Search.'' Then
click ``Comment Now!'' on the appropriate line. If you submit your
comments by mail or hand delivery, submit them in an unbound format, no
larger than 8\1/2\ by 11 inches, suitable for copying and electronic
filing. If you submit comments by mail and would like to know that they
reached the DOT Facility, please enclose a stamped, self-addressed
postcard or envelope. We will consider all comments and material
received during the comment period.
    Viewing comments and documents: To view comments as well as
documents mentioned in this notice as being available in the docket, go
to http://www.regulations.gov, type ``USCG-2011-1178'' and click
``Search.'' Then click the ``Open Docket Folder.'' Additional relevant
comments are available in docket BSEE-2014-0003 and may be viewed
online using the same procedure as for docket USCG-2011-1178. If you do
not have access to the Internet, you may view the docket online by
visiting the Docket Management Facility in Room W12-140 on the ground
floor of the DOT West Building, 1200 New Jersey Avenue SE., Washington,
DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays. We have an agreement with the DOT to use the Docket
Management Facility.
    Privacy Act: Anyone can search the electronic form of comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review a
Privacy Act and system of records notice regarding our public dockets
in the January 17, 2008, issue of the Federal Register (73 FR 3316).
    Public meeting: We do not currently plan to hold a public meeting,
but you may request one using any of the methods listed under
ADDRESSES. Please explain why you believe a public meeting would be
beneficial. If we determine that a public meeting would aid the
revision of the PREP Guidelines, we will hold one at a time and place
announced by a later notice in the Federal Register.

II. Acronyms

ACP Area Contingency Plan
AMPD Average Most Probable Discharge
APC Alternative Planning Criteria
BSEE Bureau of Safety and Environmental Enforcement
CFR Code of Federal Regulations
DOI Department of the Interior
DOT Department of Transportation
EPA Environmental Protection Agency
FOSC Federal On-Scene Coordinator
FPSO Floating Production, Storage, and Offloading
FR Federal Register
GIUE Government-Initiated Unannounced Exercise
GRPs Geographic Response Plans
GRS Geographic Response Strategies
HSEEP Homeland Security Exercise and Evaluation Program
IMT Incident Management Team
MFF Marine Firefighting
MMPD Maximum Most Probable Discharge
MOA Memorandum of Agreement
MODU Mobile Offshore Drilling Unit
MOU Memorandum of Understanding
NRT National Response Team
NSCC National Scheduling Coordination Committee
NTV Nontank Vessels
OPA 90 Oil Pollution Act of 1990
OSPD Oil Spill Preparedness Division
OSRO Oil Spill Removal Organization
OSRP Oil Spill Response Plan
PHMSA Pipeline and Hazardous Materials Safety Administration
PREP Preparedness for Response Exercise Program
QI Qualified Individual
SMFF Salvage and Marine Firefighting
SMT Spill Management Team
SONS Spill of National Significance
TTX Tabletop Exercise
USCG U.S. Coast Guard
VRP Vessel Response Plan
WCD Worst Case Discharge

III. Background

    On February 22, 2012, the USCG, on behalf of the NSCC, invited
comments and suggestions for updating the PREP Guidelines (77 FR
10542). The NSCC received public comments in docket number USCG-2011-
1178, and those comments can be viewed online as described in the
``Public Participation'' section earlier in this document. After
considering those comments, the NSCC issued a draft update to the PREP
Guidelines. The NSCC also issued a notice (79 FR 16363, March 24, 2014)
that announced the availability of the draft update to the PREP
Guidelines, invited comment on the draft, and provided responses to the
comments received in docket USCG-2011-1178. That second notice (79 FR
16363) was published as a BSEE-issued document in docket BSEE-2014-
0003. The NSCC has considered the comments received in docket BSEE-
2014-0003, and today announces the availability of an updated draft,
invites public comment on the updated draft, and responds to comments
received in the BSEE docket in response to the March 24, 2014, notice.
Although this document responds to comments received in the BSEE
docket, all further comments should be directed to the docket USCG-
2011-1178.\1\ The NSCC does not plan to use other dockets for this
revision of the PREP Guidelines.
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    \1\ On July 16, 2014, BSEE published a notice indicating that an
updated draft would be made available for public comment in the
original USCG docket, USCG-2011-1178 (79 FR 41592).
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IV. Summary of Comments and Changes

    When BSEE, on behalf of the NSCC, requested public review of the
first updated draft PREP Guidelines in its March 2014 notice, BSEE
received 83 comments from government agencies, regulated communities,
private industry, and non-governmental organizations. All of the
comments received are posted on http://www.regulations.gov, under
docket number BSEE-2014-0003. This document summarizes and responds to
those comments that were within the scope of the proposed update.
    The NSCC has incorporated numerous changes to the draft PREP
Guidelines document as a result of these public comments, and has also
updated the document to reflect other new planning requirements such as
the recent regulatory requirements relating to

nontank vessels (NTVs). In the following sections, we summarize the
comments that the NSCC received and the changes it has made to the
revised update of the PREP Guidelines.

A. Summary of Changes

    Definitions and Terminology: The NSCC has changed certain exercise-
related terms in order to harmonize PREP with other national-level
exercise programs. In particular, the term ``Spill Management Team
(SMT)'' has been replaced by the term ``Incident Management Team
(IMT).'' The term ``Tabletop Exercise (TTX)'' has been removed from the
PREP terminology and will now simply be referred to as an exercise. For
example, an SMT TTX will now be called an IMT exercise.
    Salvage and Marine Firefighting (SMFF) Additions: The draft PREP
Guidelines now include guidance for including SMFF providers and
equipment into a plan holder's exercise program, in response to
regulatory requirements at 33 Code of Federal Regulations (CFR)
155.4052. These updates appear throughout the Guidelines in applicable
sections.
    NTV Additions: The PREP Guidelines now include guidance for
exercises for NTV response plans, in response to regulatory
requirements at 33 CFR 155.5060.
    Use of Alternative Worst Case Discharges (WCD) Scenarios during IMT
Exercises: The draft Guidelines have been revised to allow for
alternative WCD scenarios to be exercised. Some Facilities and Complex
Facilities have more than one possible WCD, for example a storage tank
and a pipeline section. Such plan holders are encouraged to consider
adverse environmental impacts and to exercise more than just their
largest volume WCD scenario.
    Exercise Frequency: The draft Guidelines have been updated to
ensure consistency among NSCC agencies regarding the frequency of
equipment deployment exercises. In particular, the frequency of
deployment exercises for equipment that is owned by the facility,
operated by Oil Spill Removal Organizations (OSROs), and listed in EPA-
regulated plans has been changed from annually to semi-annually. This
change will ensure the readiness of equipment that is not regularly
used in actual spill response operations.
    Oil Spill Surveillance and Tracking Systems: USCG and BSEE
regulations require plan holders to ensure available resources for oil
spill surveillance and tracking. The PREP Guidelines establish a list
of the types of equipment to be exercised during internal deployment
exercises. This latest version of the Guidelines specifically
identifies oil spill surveillance and tracking systems as a type of
response equipment to be exercised during internal equipment deployment
exercises in order to test the plan holders abilities to effectively
support and direct other response activities and equipment, such as the
use of dispersants, in-situ burning, mechanical recovery, shoreline
protection, or wildlife recovery.
    Area-level Exercise Cycle: The exercise frequency for Area-level
exercises has been changed from three to four years. This change
applies only to the Area-level exercise cycle and does not change an
industry plan holder's exercise cycle as recommended in the draft PREP
Guidelines, nor does it change the frequency of any industry plan
holder exercises required by any oil spill planning regulations.

B. Summary of Comments and Responses

General Comments
    Additional Time to Review the Guidelines: One commenter asked for
an extended review period as they were not aware of the previous
posting of the Guidelines in the Federal Register.
    Response: In addition to the comment in the docket, the NSCC has
received numerous comments through other channels requesting additional
time to review the Guidelines. This version of the Guidelines is being
released today for public comment by the NSCC for a period of sixty
days to accommodate the numerous requests.
    Aligning PREP Terminology and Processes with Other National
Exercise Programs: Three commenters recommended aligning the PREP
Guidelines with various elements of the Homeland Security Exercise and
Evaluation Program (HSEEP).
    Response: The NSCC has decided to adopt certain terminology from
HSEEP in order to better align the two programs, especially where HSEEP
terms are more reflective of the lexicon used today within the National
Incident Management System. As a result, the term ``SMT'' has been
replaced by the term ``IMT.'' The term ``TTX'' has also been replaced
with the term ``exercise.'' Recommendations for replacing other terms,
such as changing deployment ``exercises'' to ``drills,'' were not
adopted because the NSCC did not want to introduce confusion by
changing established, recognized terms. The NSCC also did not believe
it was within the scope of the existing PREP mandate under OPA90 to
completely adopt the HSEEP exercise design and evaluation processes.
While the NSCC would encourage plan holders to consider adopting
various HSEEP best practices, HSEEP procedures are currently not
required by any of the Oil Pollution Act of 1990 (OPA90) implementing
regulations established by the NSCC member agencies.
    Unified Command during PREP Exercises: One commenter stated that
the definition of Unified Command in the PREP Guidelines was too broad
and should be more constrained to agencies with primary jurisdiction in
the incident.
    Response: The National Response Team (NRT) states in its Technical
Assistance Document on Unified Command that for entities to be
considered for inclusion within a Unified Command, they should have
authority or functional responsibility for an area of responsibility
that may be affected by an incident, as well as authority to command,
coordinate, or manage a major aspect of the response. The NSCC has
clarified the language within the definition to more closely align with
the NRT guidance.
    Use of the Acronym ``OSRO'' in PREP Terminology: One commenter
stated that the acronym ``OSRO'' was being used for two different terms
and definitions, i.e., ``Oil Spill Removal Organization'' and ``Oil
Spill Response Organization,'' which can create confusion.
    Response: The NSCC has removed the definition for Oil Spill
Response Organization from the Guidelines. The acronym ``OSRO'' now
only refers to an Oil Spill Removal Organization as defined in this
latest version of the draft PREP Guidelines.
    Use of Electronic Messaging for Qualified Individual (QI)
Notification Exercises (Section 2): One commenter requested that
electronic messaging be allowed as a primary means for notifying QIs of
a spill.
    Response: The NSCC has reviewed the language within the draft PREP
Guidelines and has determined that the language will remain the same.
The NSCC determined that voice should remain the primary means of
communication because it quickly confirms that the notification has
been received, and allows for immediate questions that may save time in
emergencies; however, electronic messaging is an acceptable alternative
if voice is unavailable. Confirmation of notification must be received
with any communication method.
    Equipment Deployment Exercises and Lessons Learned Regarding
Equipment Performance: One commenter noted a concern regarding the
conditions under

which equipment deployment exercises are conducted, as well as the lack
of mechanisms in place to capture field deployment information. This
commenter recommended that the USCG and BSEE develop a standard system
to evaluate the performance of spill response equipment under a range
of environmental conditions and capture that information in a lessons
learned database.
    Response: The primary purpose of the PREP Guidelines is to provide
guidance to industry on oil spill response exercises as required by OPA
90. The collection of information concerning the performance of spill
response equipment in a database is outside the scope of these
Guidelines.
    Dispersant-Related Objectives during PREP Exercises: One commenter
submitted an extensive set of recommendations regarding the need to
incorporate more specific dispersant-related objectives in unannounced,
deployment, IMT, and Area-level exercises.
    Response: Both BSEE and USCG regulations have requirements
concerning dispersant capabilities for many of their plan holders. Most
coastal Regional and Area Contingency Plans (ACPs) now have
preauthorization agreements in place for the use of dispersants and in-
situ burning. In order to ensure both government and industry
preparedness to use all available response countermeasures, the NSCC
incorporated additional recommended guidance regarding dispersants and
in-situ burning into the various exercise objectives. In particular,
the NSCC included in the draft Guidelines an exercise objective for
industry IMT exercises to prepare and submit usage plans for Federal
On-Scene Coordinator (FOSC) review and approval for each chemical,
biological, or in-situ burning countermeasure that is cited as a
response strategy within an Oil Spill Response Plan (OSRP) during the
course of their exercise cycle. The NSCC has similarly incorporated a
specific objective for Area-level IMT exercises to prepare usage plans
and recommendations for FOSC review and approval for any chemical or
biological countermeasures or in-situ burning that are identified as
response strategies in the ACP. Finally, the NSCC has provided
additional guidance necessary for properly conducting internal
equipment deployment exercises of dispersant and in-situ burning
equipment and procedures.
    Tidal Seal Boom Deployment: One commenter pointed out that under
the previous Guidelines, only fifty feet of tidal seal boom need be
deployed and that the revised version no longer included this
information.
    Response: The statement ``Only 50 feet of this type of boom need be
deployed'' has been included in this latest version of the draft
Guidelines.
    Government-Initiated Unannounced Exercises (GIUEs): One commenter
drew attention to the fact that guidelines for GIUEs are agency-
specific and that the NSCC gave a timeframe for when it will conduct
unannounced exercises in the area.
    Response: The timeframe has been removed to harmonize the
Guidelines.
    Area-Level Exercise Goals: One commenter noted that Area-level
exercise goals appear aggressive and that some Area-level exercises
approach a Spill of National Significance (SONS) in scope and
complexity, and recommended that the Guidelines limit exercises to a
single day.
    Response: NSCC members have determined that the language in the
PREP Guidelines will remain the same. The NSCC does not want to limit
the flexibility of Area Committees in designing exercises that meet
their needs.
    Testing Geographic Response Plans (GRPs) during PREP Exercises: One
commenter noted that GRPs and Geographic Response Strategies (GRSs),
which have been incorporated into many ACPs, should be incorporated
into PREP, tested during deployment exercises, and the resultant data
collected to be used to improve the GRPs/GRSs.
    Response: The NSCC agrees that the targeted testing of certain GRPs
and GRSs is a desirable preparedness activity that could improve the
quality of the strategies contained within an ACP. The PREP Guidelines
cover the testing of response strategies at Section 2, Guiding
Principles, Subpart J, Area Exercises. The NSCC encourages Area
Committees and FOSCs to consider exercising and evaluating GRPs as part
of the Area Exercise Cycle, subject to their discretion and available
funding.
    Removal of PREP Documentation and Certification Forms from
Appendix: One commenter raised concern about the removal of the forms
from the PREP Guidelines for documentation for self-certification.
    Response: The forms were removed from the PREP Guidelines to avoid
the appearance that any particular form of documentation was required.
While the forms are no longer in the Guidelines, industry may choose to
use those or any other form or template, at their own discretion, for
their internal documentation.
Multi-Agency Regulated Facility and Vessel Comments
    Complex Facilities Regulated by More Than One Federal Agency: One
commenter raised concern that complex facilities are addressed by WCD
amounts and not in average most probable discharge (AMPD) or maximum
most probable discharge (MMPD).
    Response: The NSCC has updated the definitions for AMPD and MMPD
with language about complex facilities similar to WCD for complex
facilities regulated by more than one federal agency.
    Agency Jurisdiction for PREP with Respect to Mobile Offshore
Drilling Units (MODU) and Floating Production, Storage, and Offloading
(FPSO) Vessels: One commenter asked for clarification of agency
jurisdiction for PREP with respect to MODUs and FPSO vessels.
    Response: MODUs and FPSO vessels may be properly characterized as
both offshore facilities and vessels. Multi-function offshore units
such as FPSOs and MODUs are regulated by both USCG and BSEE with
respect to these different functions, and each agency will have its own
separate jurisdiction and regulatory oversight of these functional
areas. In addition, the USCG and BSEE have entered into a general
Memorandum of Understanding (MOU), along with specific Memorandums of
Agreement (MOAs), with respect to jurisdictional oversight. As such, it
is up to each agency to provide guidance regarding the applicability of
its regulations and PREP Guidelines. When MODUs and FPSO vessels are
conducting operations as an offshore facility, the offshore facility
PREP Guidelines overseen by BSEE apply. When MODUs and FPSO are
operating as vessels, vessel PREP Guidelines overseen by USCG apply.
BSEE and the USCG will work closely together to ensure a coordinated
approach to PREP guidance and oversight with respect to these dual
purpose entities whenever possible.
USCG-Regulated Vessels and Marine Transportation-Related Facilities
Comments
    Economic Analysis for SMFF Requirements: Multiple commenters
requested that an economic analysis be conducted for the PREP
Guidelines regarding the SMFF exercise requirements.
    Response: The PREP Guidelines are voluntary guidelines that only
provide optional, recommended methods for complying with the existing
regulatory requirements. As such, economic analyses are not required to
be prepared

for the PREP Guidelines. The regulations themselves were subjected to
an economic analysis prior to their promulgation.\2\
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    \2\ Economic analysis information is found in the preambles to
the final rule for salvage and marine firefighting (73 FR 80618,
December 31, 2008) and the final rule for nontank vessel response
plans (78 FR 60099, September 30, 2013).
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    To address the concern about the economic burden of new exercise
requirements on vessel owners and operators, several modifications have
been made to the PREP Guidelines as follows:
    1. To comply with PREP Guidelines, vessels must conduct a Remote
Assessment and Consultation Exercise for Vessels annually. PREP
exercise requirements for Remote Assessment and Consultation Exercises
have been more completely defined to improve the effectiveness of
response planning for this service.
    2. PREP exercises for SMFF emergency lightering and MFF services do
not apply to NTVs with an oil capacity under 250 barrels.
    3. Plan holders may claim credit for combined PREP exercises,
incidents, and in the case of SMFF, they may claim PREP exercise credit
for non-emergency equipment deployments during large-scale operations.
    NTV and SMFF Definitions: Multiple comments were received asking
for clarification of the definitions related to new NTV and SMFF
regulations. In addition, one commenter noted that the PREP Guidelines
emphasize spill cleanup; however, the principle purpose of SMFF is
spill prevention and the commenter requested that spill prevention
language be included in the PREP Guidelines.
    Response: The following definitions have been reviewed and/or
updated within the PREP Guidelines: Marine Firefighting (MFF)
Organization, Plan Holder, Primary Resource Provider, Resource
Provider, Salvage Organization, SMFF Provider, and SMFF Response
Services. The USCG has replaced the words ``spill response'' with
``response, and ``spill management'' with ``incident management''
throughout the document to reflect that certain exercises may not
include a spill, but rather the prevention of a potential spill.
    Remote Assessment and Consultation Exercises for Vessels--Value:
Multiple commenters questioned the value of the remote assessment and
consultation exercise. Others suggested that the exercise be applied to
Vessel Response Plans (VRPs) instead of vessels.
    Response: These exercises ensure that professional remote
assessment and consultation services can be effectively activated
within one hour of the time anyone in the response organization
receives notification of the spill or potential spill. The early
initiation of a situational assessment by a competent SMFF professional
may prevent potential spills from turning into spills, and prevent
actual spills from escalating in size.
    Because of the short timeframe involved and the vessel-specific
response required, this exercise must be conducted by each vessel
covered under the response plan.
    Remote Assessment and Consultation Exercises for Vessels--
Participants: Several commenters expressed concern that the PREP
Guidelines' remote assessment and consultation exercise description of
participants did not reflect the process outlined in the VRP which
involves initial notification via the QI. In contrast, one commenter
said that since SMFF contractual agreements are directly between the
owner/operator and SMFF provider, the remote assessment and
consultation exercise participants should be the SMFF provider and
vessel owner/operator, excluding the QI.
    Response: In response to these comments, the PREP Guidelines' new
remote assessment and consultation exercise description reflects that
participants should be consistent with the VRP for notification/
activation and provision of remote assessment and consultation
services.
    Emergency Procedures Exercises for Vessels--Participating Elements
and Applicability to SMFF Providers: One commenter asked for
clarification about whether or not the emergency procedures exercise
includes SMFF resource providers.
    Response: The PREP Guidelines' description of On-Board Emergency
Procedures Exercise for vessels clearly indicates that the exercise
applies to manned tank vessels and NTVs carrying oil as cargo or fuel,
and that the participating elements are vessel personnel. Both the PREP
On-Board Emergency Procedures Exercises and PREP's Remote Assessment
and Consultation Exercises are based on scenarios found in the
shipboard response chapter of the VRP. These exercises may be conducted
separately. PREP allows exercises to be combined, and a vessel owner/
operator may choose to combine these two exercises to multiply the
benefits obtained in terms of reinforcing the procedures to achieve
quicker and more effective initial response to a spill or the threat of
a spill.
    Incident Management Exercises for Vessels--Participating Elements:
One commenter suggested that the plan holder be added to participating
elements of the IMT exercise for vessels because plan holders should be
aware of the IMT capabilities and their own requirements during an
incident from one of their vessels.
    Response: The USCG agrees that the regulated party should be
involved in the exercise, as reflected in the VRP. No change was
necessary to reflect this.
    Shore-Based Salvage and Shore-Based MFF Exercises for Vessels--
Separate or Combined Exercises: Multiple commenters requested that the
shore-based salvage and shore-based MFF exercises not be held
separately from IMT exercises. Some suggested that the salvage and MFF
exercises be combined with each other since the services for each will,
in most cases, be provided by the same primary resource provider.
    Response: To comply with the PREP Guidelines, salvage and MFF
components of the VRP must be exercised annually, either separately or
combined. IMT, salvage, and MFF exercises may also be combined.
    It is a basic PREP tenet that plan holders may claim credit for
exercises when conducted in conjunction with other exercises, and a
proper record is generated. Credit should be claimed for an actual
response when the objectives of the exercise(s) are met, the response
is evaluated, and a proper record is generated. Third party salvage and
MFF teams may provide documentation of their incidents and exercises to
their clients, and their clients may claim credit for the portions of
the exercise that are applicable to their VRPs.
    Shore-Based Salvage and Shore-Based MFF Exercises for Vessels--
Participating Elements: Several commenters requested that the vessel
owner/operator be included as a participating element for the shore-
based salvage and shore-based MFF exercises.
    Response: The management team, as established in a plan holder's
VRP, must participate in PREP annual shore-based exercises for salvage
and for MFF. The vessel owner/operator is not necessarily part of the
management team established in the VRP, but the vessel owner/operator
(or representative) may participate in the exercise.
    SMFF Equipment Deployment Exercises for Vessels--Participating
Elements: Multiple commenters requested removal of the requirement that
all SMFF equipment-operating personnel participate in an annual
equipment deployment exercises

because their routine work involves the deployment of this equipment.
    Response: SMFF providers may claim PREP exercise credit for
operational equipment deployments if exercise objectives are met and a
proper record is documented. This would include claiming credit for
participation of all SMFF personnel that were involved in the
operational deployment of the equipment.
    SMFF Equipment Deployment Exercises for Vessels--Exercise
Documentation: One commenter recommended that all vessel plan holders
identifying a contracted SMFF provider in their response plans must be
able to document completion of SMFF equipment deployment requirements.
    Response: It is the vessel plan holder's responsibility to ensure
that the contracted SMFF provider completes PREP equipment deployment
exercise requirements. All vessel plan holders identifying a contracted
SMFF provider in their response plans may claim PREP credit for their
SMFF provider's equipment deployment exercises following receipt of
exercise documentation from the provider.
    Equipment Deployment Exercises for Vessels--Regional Exercises:
Some commenters recommended a regional approach to SMFF equipment
deployment exercises involving exercises in the Atlantic, Gulf, and
Pacific regions, conducted on a rotational basis once every three
years.
    Response: When an SMFF provider proposes to conduct regional large-
scale equipment deployment exercises to meet equipment deployment
exercise requirements for their clients, the provider should request
Alternative Planning Criteria (APC) approval from the USCG for the
proposed exercises as described in 33 CFR 155.1055 and 155.5067.
    All vessel plan holders identifying a contracted SMFF provider in
their response plans may claim PREP credit for their SMFF provider's
equipment deployment exercises following receipt of exercise
documentation from the provider.
    GIUEs--SMFF Services: Multiple commenters recommended that GIUEs
not apply to SMFF services.
    Response: SMFF GIUE requirements have been removed from this
revision of the PREP Guidelines, and will not apply to SMFF services.
BSEE-Regulated Offshore Facilities Comments
    Notification Exercises for BSEE-Regulated Facilities: Three
commenters raised concerns over the Notification Exercises for offshore
facilities. One comment indicated that requiring notifications within
two weeks of beginning operations was too vague. Another comment raised
a concern that this two-week requirement may conflict with provisions
established by plan holders in their OSRP. A third commenter suggested
that the elements of information listed as objectives that must be
communicated during Notification Exercises greatly exceeds what is
currently contained within OSRPs or is required in the regulations.
    Response: Due to the criticality of the spill notification process
to an effective response, BSEE strongly recommends testing the plan
holder's notification processes very early in their operational
lifecycle, as well as preparing to gather and convey as much pertinent
information as possible, in the early phase of an incident. BSEE has
amended the language to clarify that for 24-hour manned production
facilities, a Notification Exercise should be conducted within two
weeks of beginning production operations. BSEE did not amend the
language that pertains to mobile drilling units in this section, as
BSEE believes that OSRPs should align, to the maximum extent possible,
with the guidance recommended in the PREP Guidelines, which provide
important additional detail concerning the implementation of the
regulations. BSEE acknowledges that the elements of information now
requested for a Notification Exercise is more detailed than the
information that is currently required by the regulations. As a result,
BSEE has amended the language in this section to indicate that a plan
holder should, rather than must, communicate as many of the elements of
information as possible during the Notification Exercise.
    Deployment Exercises for Source Control, Subsea Containment, and
Supporting Equipment: Two commenters raised concerns about exercises
involving source control and subsea containment equipment. One
commenter stated that there are high risks and time burdens associated
with unannounced exercises of this equipment, and questioned their
utility to demonstrate real readiness. One commenter stated that the
costs associated with conducting annual or biennial deployment
exercises for this equipment is too burdensome, and that such exercises
should only be conducted when there has been a material change to
equipment design, provider, or means of deployment, or at a minimum
frequency of five years.
    Response: When source control, subsea containment, and supporting
equipment are listed in an OSRP as a means for regaining control of a
well and securing a threatened or actual discharge of oil, the PREP
Guidelines allow for Regional BSEE Oil Spill Preparedness Division
(OSPD) representatives to direct an OSRP holder to conduct a deployment
exercise of this equipment. As the scope and cost of such deployment
exercises can be quite large, BSEE does not intend to require plan
holders or providers of source control, subsea containment, and
supporting equipment to conduct deployment exercises at the same semi-
annual or annual frequency as required for other spill response
equipment. BSEE also does not intend to routinely conduct GIUEs that
include the deployment of source control, subsea containment, and
supporting equipment as part of the scope of a GIUE; however, BSEE has
the authority and retains the prerogative to require GIUEs that have
the deployment of source control, subsea containment, and/or supporting
equipment as an element of that exercise, or to require deployment
exercises of this equipment that are coordinated in advance but have
some elements and objectives that will remain undisclosed until the
commencement of the exercise. As organizations that provide source
control, subsea containment, and supporting equipment cover multiple
plan holders, credit for any deployment exercise successfully conducted
by such a service provider will be extended to all plan holders who
contract with the provider for those services. This extension of credit
does not extend to IMT exercises where the management and oversight of
source control activities must be exercised to ensure proper
integration with other surface response activities and the overall
management of the incident. These IMT exercises must include
interaction between officials from a plan holder's specific
organization and its IMT, including those officials who would manage
source control and subsea containment capabilities, and therefore
should be conducted separately and singularly for each OSRP.
    GIUEs for BSEE-Regulated Facilities: One commenter requested
clarification regarding whether there is an annual limit to the number
of GIUEs that are conducted by BSEE.
    Response: The previous PREP Guidelines indicated that BSEE may
exceed 50 GIUEs per year nationally. It is unlikely that BSEE would
conceivably conduct 50 or more GIUEs in any given year. There is no
specified limit to the number of GIUEs that BSEE may conduct in a
calendar year. BSEE will use a number of factors that vary

from year to year in order to determine the need to conduct GIUEs, and
will use risk-based decision-making tools whenever possible. The
language in the revised Guidelines has been amended to indicate that
the number of GIUEs conducted by BSEE will be determined by the BSEE
OSPD Chief, and does not make any reference to a specific number that
may be conducted in a given year.

V. Request for Comments

    The NSCC members request public comments on the updated draft PREP
Guidelines, which are available in docket USCG-2011-1178 as described
in the ADDRESSES section of this notice.

    Dated: February 23, 2015.
P.J. Brown,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Response
Policy.
[FR Doc. 2015-04160 Filed 2-26-15; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 80, Number 90 (Monday, May 11, 2015)]
[Notices]
[Pages 26919-26920]
[FR Doc No: 2015-11281]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP15-904-000.
    Applicants: Gas Transmission Northwest LLC.
    Description: Petition of Gas Transmission Northwest LLC for
Approval of Stipulation and Agreement of Settlement.
    Filed Date: 4/23/15.
    Accession Number: 20150423-5271.
    Comments Due: 5 p.m. ET 5/5/15.

    Docket Numbers: RP15-929-000.
    Applicants: Equitrans, L.P.
    Description: Section 4(d) rate filing per 154.204: Negotiated Rate
Service Agreement--Mountaineer Keystone LLC to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5059.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-930-000.
    Applicants: TC Offshore LLC.
    Description: Section 4(d) rate filing per 154.403: Cashout 2015 to
be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5067.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-931-000.
    Applicants: ANR Pipeline Company.
    Description: Section 4(d) rate filing per 154.403: Cashout 2015 to
be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5070.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-932-000.
    Applicants: Florida Gas Transmission Company, LLC.
    Description: Section 4(d) rate filing per 154.204: Exhibit B
Update--Contract 117453 to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5082.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-933-000.
    Applicants: ETC Tiger Pipeline, LLC.
    Description: Section 4(d) rate filing per 154.403: Fuel Filing on
4-30-15 to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5083.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-934-000.
    Applicants: Fayetteville Express Pipeline LLC.
    Description: Section 4(d) rate filing per 154.403: Fuel Filing on
4-30-15 to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5084.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-935-000.
    Applicants: Kinder Morgan Louisiana Pipeline LLC.
    Description: Section 4(d) rate filing per 154.204: Filing to
Substitute Published Index Prices to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5155.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-936-000.
    Applicants: Alliance Pipeline L.P.
    Description: Section 4(d) rate filing per 154.204: May 1--31 2015
Auction to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5193.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-937-000.
    Applicants: Northern Natural Gas Company.
    Description: Section 4(d) rate filing per 154.403: 20150501 Winter
PRA Fuel Rates to be effective 11/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5195.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-938-000.
    Applicants: Cheyenne Plains Gas Pipeline Company, L.
    Description: Section 4(d) rate filing per 154.403(d)(2): FL&U to be
effective June 1, 2015 to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5204.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-939-000.
    Applicants: Wyoming Interstate Company, L.L.C.
    Description: Section 4(d) rate filing per 154.403(d)(2): FL&U to be
effective June 1, 2015 to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5213.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-940-000.
    Applicants: El Paso Natural Gas Company, L.L.C.
    Description: Section 4(d) rate filing per 154.601: Negotiated Rate
(EP Marketing) to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5273.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-941-000.
    Applicants: Discovery Gas Transmission LLC.
    Description: Section 4(d) rate filing per 154.204: 2015 System Map
Update to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5275.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-942-000.
    Applicants: Dominion Carolina Gas Transmission, LLC.
    Description: Compliance filing per 154.203: Compliance new tariff
(Baseline) to be effective 4/30/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5305.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-943-000.
    Applicants: Dominion Transmission, Inc.
    Description: Section 4(d) rate filing per 154.204: DTI--April 30,
2015 Negotiated Rate Agreements to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5308.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-944-000.
    Applicants: Dominion Carolina Gas Transmission, LLC.

    Description: Tariff Cancellation per 154.602: Cancellation of whole
tariff to be effective 4/30/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5320.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-945-000.
    Applicants: Enable Mississippi River Transmission, L.
    Description: Section 4(d) rate filing per 154.204: Negotiated Rate
Filing to Remove CES 5677 Eff 5-1-15 to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5404.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-946-000.
    Applicants: Algonquin Gas Transmission, LLC.
    Description: Section 4(d) rate filing per 154.204: US Gas 2015-05-
01 Ramapo Release to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5424.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-947-000.
    Applicants: Algonquin Gas Transmission, LLC.
    Description: Section 4(d) rate filing per 154.204: Negotiated
Rate--Nextera 510810 to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5486.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-948-000.
    Applicants: Questar Overthrust Pipeline Company.
    Description: Section 4(d) rate filing per 154.204: Capacity
Reserved for Future Expansion to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5500.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-949-000.
    Applicants: Midcontinent Express Pipeline LLC.
    Description: Section 4(d) rate filing per 154.403(d)(2): Fuel
Tracker 06/01/15 to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5514.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-950-000.
    Applicants: Equitrans, L.P.
    Description: Section 4(d) rate filing per 154.204: Negotiated
Capacity Release Agreement- 5/01/2015 to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5550.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-951-000.
    Applicants: Cheyenne Plains Gas Pipeline Company, L.
    Description: Section 4(d) rate filing per 154.601: Name Change
(Encore) to be effective 6/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5560.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-952-000.
    Applicants: Tallgrass Interstate Gas Transmission, L.
    Description: Section 4(d) rate filing per 154.204: Neg Rate 2015/4/
30 DCP Midstream to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5589.
    Comments Due: 5 p.m. ET 5/12/15.

    Docket Numbers: RP15-953-000.
    Applicants: Gulfstream Natural Gas System, L.L.C.
    Description: Section 4(d) rate filing per 154.403(d)(2): 2015 GNGS
TUP/SBA Filing to be effective 6/1/2015.
    Filed Date: 5/1/15.
    Accession Number: 20150501-5001.
    Comments Due: 5 p.m. ET 5/13/15.

    Docket Numbers: RP15-954-000.
    Applicants: Tuscarora Gas Transmission Company.
    Description: Section 4(d) rate filing per 154.204: TC Plus System
Implementation to be effective 6/1/2015.
    Filed Date: 5/1/15.
    Accession Number: 20150501-5033.
    Comments Due: 5 p.m. ET 5/13/15.

    Docket Numbers: RP15-955-000.
    Applicants: Gas Transmission Northwest LLC.
    Description: Section 4(d) rate filing per 154.204: Implementation
of TC Plus to be effective 6/1/2015.
    Filed Date: 5/1/15.
    Accession Number: 20150501-5037.
    Comments Due: 5 p.m. ET 5/13/15.

    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.

Filings in Existing Proceedings

    Docket Numbers: RP15-681-002.
    Applicants: MIGC LLC.
    Description: Compliance filing per 154.203: Amendment to Docket
Number RP15-681-000 to be effective 4/24/2015.
    Filed Date: 3/31/15.
    Accession Number: 20150331-5446.
    Comments Due: 5 p.m. ET 5/6/15.

    Docket Numbers: RP15-914-001.
    Applicants: Trailblazer Pipeline Company LLC.
    Description: Tariff Amendment per 154.205(b): Amend Koch K in RP15-
914 to be effective 5/1/2015.
    Filed Date: 4/30/15.
    Accession Number: 20150430-5004.
    Comments Due: 5 p.m. ET 5/12/15.

    Any person desiring to protest in any of the above proceedings must
file in accordance with Rule 211 of the Commission's Regulations (18
CFR 385.211) on or before 5:00 p.m. Eastern time on the specified
comment date.
    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: May 1, 2015.
Kimberly D. Bose,
Secretary.
[FR Doc. 2015-11281 Filed 5-8-15; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 65 (Friday, April 3, 2020)]
[Notices]
[Pages 19047-19050]
[FR Doc No: 2020-06956]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88513; File No. SR-DTC-2020-007]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Revise the Clearing Agency Investment Policy

March 30, 2020.
    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 March 26, 2020, The Depository Trust Company (``DTC'') 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 the clearing agency. DTC filed the proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change would revise the Clearing Agency
Investment Policy (``Investment Policy'') of DTC and its affiliates,
National Securities Clearing Corporation (``NSCC'') and Fixed Income
Clearing Corporation (``FICC,'' and together with DTC and NSCC, the
``Clearing Agencies'') in order to (1) include the proceeds of the
issuance of term debt by NSCC as part of the description of ``Default
Liquidity Funds'' within the section for ``Investable Funds''; (2)
clarify the allowable investments for DTC's Participants Fund; \5\ and
(3) enhance the description of collateral that may be posted in
connection with investments in reverse repurchase agreements; as
described in greater detail below.
---------------------------------------------------------------------------

    \5\ The respective Clearing Funds of NSCC and FICC, and the DTC
Participants Fund are described in the Rules & Procedures of NSCC
(``NSCC Rules''), the DTC Rules, By-laws and Organization
Certificate (``DTC Rules''), the Clearing Rules of the Mortgage-
Backed Securities Division of FICC (``MBSD Rules'') and the Rulebook
of the Government Securities Division of FICC (``GSD Rules''),
respectively, available at http://dtcc.com/legal/rules-and-procedures. See Rule 4 (Clearing Fund) of the NSCC Rules, Rule 4
(Participants Fund and Participants Investment) of the DTC Rules,
Rule 4 (Clearing Fund and Loss Allocation) of the GSD Rules and Rule
4 (Clearing Fund and Loss Allocation) of the MBSD Rules.
---------------------------------------------------------------------------

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

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

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

1. Purpose
    The Clearing Agencies are proposing to revise the Investment
Policy, which was adopted for each clearing agency in December 2016 \6\
and is maintained in compliance with Rule 17Ad-22(e)(16) under the
Act,\7\ in order to (1) include the proceeds of the issuance of term
debt by NSCC as part of the description of ``Default Liquidity Funds''
within the section for ``Investable Funds''; (2) clarify the allowable
investments for DTC's Participants Fund; and (3) enhance the
description of collateral that may be posted in connection with
investments in reverse repurchase agreements; as described in greater
detail below.
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    \6\ See Securities Exchange Act Release No. 79528 (December 12,
2016), 81 FR 91232 (December 16, 2016) (SR-DTC-2016-007, SR-FICC-
2016-005, SR-NSCC-2016-003).
    \7\ 17 CFR 240.17Ad-22(e)(16). As discussed in this filing, the
Investment Policy also addresses compliance with the requirements of
Rule 17Ad-22(e)(3). 17 CFR 240.17Ad-22(e)(3).
---------------------------------------------------------------------------

Overview of the Investment Policy
    The Investment Policy governs the management, custody and
investment of cash deposited to the respective NSCC and FICC Clearing
Funds, and the DTC Participants Fund, the proprietary liquid net assets
(cash and cash equivalents) of the Clearing Agencies, and other funds
held by the Clearing

Agencies pursuant to their respective rules.
    The Investment Policy identifies the guiding principles for
investments and defines the roles and responsibilities of DTCC staff in
administering the Investment Policy pursuant to those principles. The
Investment Policy is co-owned by DTCC's Treasury group (``Treasury'')
\8\ and the Counterparty Credit Risk team (``CCR'') within DTCC's Group
Chief Risk Office (``GCRO'').\9\ Treasury is responsible for
identifying potential counterparties to investment transactions,
establishing and managing investment relationships with approved
investment counterparties, and making and monitoring all investment
transactions with respect to the Clearing Agencies. CCR is responsible
for conducting a credit review of any potential counterparty, updating
those reviews on a quarterly basis, and establishing an investment
limit for each counterparty.
---------------------------------------------------------------------------

    \8\ Treasury is a part of the DTCC Finance Department and is
responsible for the safeguarding, investment and disbursement of
funds on behalf of the Clearing Agencies and in accordance with the
principles outlined in the Investment Policy.
    \9\ Among other responsibilities, GCRO is generally responsible
for the systems and processes designed to identify and manage
credit, market and liquidity risks to the Clearing Agencies.
---------------------------------------------------------------------------

    The Investment Policy also identifies sources of funds that may be
invested, and the permitted investments of those funds, including the
authority required to make such investments and the parameters of, and
limitations on, each type of investment. Allowable investments include
bank deposits, reverse repurchase agreements, direct obligations of the
U.S. government, money market mutual funds, high-grade corporate debt,
and hedge transactions. Finally, the Investment Policy defines the
approval authority required to exceed established investment limits.
Proposed Revisions to the Investment Policy
    The Investment Policy is reviewed and approved by the Boards
annually. In connection with the most recent annual review of the
Investment Policy and in order to reflect recent changes to NSCC's
default liquidity funds, the Clearing Agencies have decided to propose
certain revisions and updates. These proposed revisions, described in
greater detail below, are designed to update the Investment Policy and
help ensure that it reflects the Clearing Agencies' practices related
to investments of funds.
1. Include Additional NSCC Default Liquidity in Table of Investable
Funds
    First, the Clearing Agencies are proposing to amend the table of
investable funds in Section 5 of the Investment Policy to include
proceeds from the issuance of term debt by NSCC in the description of
NSCC's default liquidity funds.
    This table identifies the sources of investable funds that are
invested by the Clearing Agencies, and groups these sources of funds
into separate categories. One of the categories of investable funds is
the default liquidity funds of NSCC, which is currently described as
including the proceeds from the issuance of commercial paper and
extendible notes. NSCC recently proposed to raise additional prefunded
default liquidity through the periodic issuance and private placement
of term debt.\10\ The investment of these funds would be governed by
the Investment Policy.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 88146 (February 7,
2020), 85 FR 8046 (February 12, 2020) (SR-NSCC-2019-802).
---------------------------------------------------------------------------

    The proposed change to the Investment Policy would include proceeds
from the issuance of term debt in this category of ``Investable Funds''
to reflect the recent effectiveness of NSCC's proposal.\11\
---------------------------------------------------------------------------

    \11\ Id.
---------------------------------------------------------------------------

2. Clarify Allowable Investments for DTC's Participants Fund
    Second, the Clearing Agencies are proposing to make two revisions
to the Investment Policy to clarify how DTC's Participants Fund may be
invested. It has historically been DTC's practice to invest its
Participants Fund in cash deposit accounts only, so that the funds are
available for same-day access and settlement.
    The Clearing Agencies are proposing to update the Investment Policy
to more clearly reflect this practice. First, the Clearing Agencies are
proposing to amend the table of allowable investments in Section 6.1 of
the Investment Policy to include a separate column to identify the DTC
Participants Fund, and show these funds as being available for
investment only in bank deposits, including DTC's cash deposit account
at the Federal Reserve Bank of New York. Currently, the DTC
Participants Fund is included in the same column as the NSCC and FICC
Clearing Funds, which may also be invested in other investment types.
Therefore, as currently written, this table indicates that DTC's
Participants Fund may also be invested in those other investment types.
The proposed change to create a separate column for DTC's Participants
Fund would more clearly identify the allowable investments of these
funds.
    Also, the Clearing Agencies are proposing to amend Section 6.2.1 of
the Investment Policy, which describes the limits on investments in
bank deposits, to explicitly state that DTC's Participants Fund may
only be invested in demand deposit, savings or checking bank accounts
that provide same day access to funds. This proposed change would
clearly identify the limits on investments of DTC's Participants Fund
in certain types of bank deposits.
    The proposed changes would improve the Investment Policy by more
clearly identifying DTC's practice with respect to the investment of
its Participants Fund deposits.
3. Enhance Description of Collateral Related to Reverse Repurchase
Agreements
    Finally, the Clearing Agencies are proposing to amend Section 6.2.2
of the Investment Policy, which describes investment limits on
investments in reverse repurchase agreements. The proposed changes
would include additional detail to more clearly describe the collateral
that may be posted by a counterparty in connection with these
investments and to identify the required haircuts on such collateral.
    More specifically, in these arrangements, where the Clearing
Agencies are the purchaser of securities, the counterparty to the
transaction delivers to the custodian collateral (either securities or
cash). Currently, the Investment Policy states that securities posted
as collateral must have a market value equal to 102% or greater of the
cash invested. The proposed changes to the Investment Policy would
further state that U.S. Treasury securities, U.S. agency securities and
agency mortgage-backed securities posted as collateral must have a two
percent haircut; and cash posted as collateral shall have no haircut,
because cash does not carry any associated market risk that could lead
to a change in collateral value.
    The proposed changes would improve the Investment Policy by more
clearly describing the limits applicable to these types of investments.
2. Statutory Basis
    The Clearing Agencies believe that the proposed rule changes are
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a registered clearing agency. In
particular, the Clearing Agencies believe that the proposed
modifications to the Investment Policy

are consistent with Section 17A(b)(3)(F) of the Act \12\ and Rule 17Ad-
22(e)(16) under the Act,\13\ for the reasons described below.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78q-1(b)(3)(F).
    \13\ 17 CFR 240.17Ad-22(e)(16).
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act requires, in part, that the rules
of each of the Clearing Agencies be designed to assure the safeguarding
of securities and funds which are in the custody or control of each of
the Clearing Agencies or for which they are responsible.\14\ The
investment guidelines and governance procedures set forth in the
Investment Policy are designed to safeguard funds which are in the
custody or control of the Clearing Agencies or for which they are
responsible. Such protections include, for example, following a prudent
and conservative investment philosophy that places the highest priority
on maximizing liquidity and risk avoidance. The Clearing Agencies
believe each of these proposed changes would help facilitate the
effective execution of the Investment Policy pursuant to the guiding
principles set forth therein. Therefore, the Clearing Agencies believe
the proposed changes would allow the Clearing Agencies to continue to
operate the Investment Policy pursuant to a prudent and conservative
investment philosophy that assures the safeguarding of securities and
funds which are in their custody and control, or for which they are
responsible.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    First, the proposed change to include proceeds from NSCC's issuance
of term debt in the table of ``Investable Funds'' would make
investments of these funds subject to the guidelines and restrictions
set forth in the Investment Policy, and, therefore, would assure the
safeguarding of these funds.
    Second, the proposed changes to clarify the allowable investments
for DTC's Participants Fund and enhance the description of restrictions
applicable to investments in reverse repurchase agreements would
improve the clarity and accuracy of the Investment Policy. By creating
clearer descriptions, the Clearing Agencies believe these proposed
changes would make the Investment Policy more effective in governing
the management, custody, and investment of funds of and held by the
Clearing Agencies.
    For the reasons described above, the Clearing Agencies believe the
proposed changes would improve the effectiveness of the Investment
Policy and allow the Investment Policy to continue to be administered
in alignment with the investment guidelines and governance procedures
set forth therein. Given that such guidelines and governance procedures
are designed to safeguard funds which are in the custody or control of
the Clearing Agencies or for which they are responsible, the Clearing
Agencies believe the proposed changes are consistent with the
requirements of Section 17A(b)(3)(F) of the Act.\15\
---------------------------------------------------------------------------

    \15\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(16) under the Act requires the Clearing Agencies to
establish, implement, maintain and enforce written policies and
procedures reasonably designed to safeguard the Clearing Agencies' own
and their participants' assets, minimize the risk of loss and delay in
access to these assets, and invest such assets in instruments with
minimal credit, market, and liquidity risks.\16\
---------------------------------------------------------------------------

    \16\ When the Investment Policy was implemented, the Clearing
Agencies were subject to the requirements of subsection (d) of Rule
17Ad-22 under the Act, and the Investment Policy was designed to
meet the requirements of Rule 17Ad-22(d)(3). See supra note 6; 17
CFR 240.17Ad-22(d). The Commission subsequently adopted Rule 17Ad-
22(e) and amended Rule 17Ad-22(d) such that the Clearing Agencies
became subject to the new requirements of Rule 17Ad-22(e) and are no
longer subject to the requirements of Rule 17Ad-22(d). 17 CFR
240.17Ad-22(e).
---------------------------------------------------------------------------

    The Clearing Agencies believe that the Investment Policy follows a
prudent and conservative investment philosophy, placing the highest
priority on maximizing liquidity and avoiding risk of loss, by
requiring the segregation of funds of each Clearing Agency and of types
of funds of each Clearing Agency, using external credit ratings in the
evaluation of counterparties, and establishing investment limits by
counterparty as well as investment type. As originally implemented, the
Investment Policy was designed to meet the requirements of Rule 17Ad-
22(e)(16) under the Act.\17\
---------------------------------------------------------------------------

    \17\ Id.
---------------------------------------------------------------------------

    For the reasons stated above, the Clearing Agencies believe that
each of the proposed revisions would improve the clarity and
comprehensiveness of the Investment Policy and, therefore, make the
Investment Policy more effective in governing the management, custody,
and investment of funds of and held by the Clearing Agencies. In this
way, the proposed changes would better allow the Clearing Agencies to
maintain this document in a way that is designed to meet the
requirements of Rule 17Ad-22(e)(16). Therefore, the Clearing Agencies
believe the proposed revisions would be consistent with the
requirements of Rule 17Ad-22(e)(16) under the Act.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 240.17Ad-22(e)(16).
---------------------------------------------------------------------------

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

    Each of the Clearing Agencies believes that none of the proposed
revisions to the Investment Policy would have any impact, or impose any
burden, on competition. The Investment Policy applies equally to
allowable investments of FICC and NSCC Clearing Funds and DTC
Participants Fund deposits, as applicable, of each member of the
Clearing Agencies, and establishes a uniform policy at the Clearing
Agencies. The proposed changes to the Investment Policy would not
affect any changes on the fundamental purpose or operation of this
document and, as such, would also not have any impact, or impose any
burden, on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

    The Clearing Agencies have not solicited or received any written
comments relating to this proposal. The Clearing Agencies will notify
the Commission of any written comments received by the Clearing
Agencies.

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

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \19\ and
Rule 19b-4(f)(6) thereunder.\20\
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or 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-DTC-2020-007 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-DTC-2020-007. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of DTC and on DTCC's website
(http://dtcc.com/legal/sec-rule-filings.aspx). 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-DTC-2020-007 and should be submitted on
or before April 24, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06956 Filed 4-2-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 162 (Tuesday, August 21, 2018)]
[Notices]
[Pages 42354-42355]
[FR Doc No: 2018-17987]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2017-0226]

Fixing America's Surface Transportation Act Correlation Study

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice; request for comments.

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

SUMMARY: On June 27, 2017, the National Academy of Sciences (NAS)
published its report titled, ``Improving Motor Carrier Safety
Measurement.'' This report was commissioned by FMCSA consistent with
the requirements of Section 5221 of the Fixing America's Surface
Transportation (FAST) Act. The FAST Act also requires that the Agency
develop a corrective action plan to address any identified deficiencies
and submit it to Congress and the U.S. Department of Transportation's
(DOT) Office of Inspector General (OIG); this was completed on June 25,
2018. The purpose of this notice is to announce a public meeting to
discuss NAS recommendations 2, 3 and 4 and to solicit input to be
considered by the Agency.

DATES: The public meeting will take place on Wednesday, August 29,
2018, from 9:00 a.m. to 12:00 p.m., Eastern Time. A copy of the agenda
for the meeting will be available in advance of the meeting at https://www.fmcsa.dot.gov/fastact/csa. If all interested participants have had
an opportunity to comment, the meeting may conclude early.
    Public Comments: Comments must be received by October 22, 2018.

ADDRESSES: The meeting will be held at the FMCSA National Training
Center, 1310 N Courthouse Road, Suite 600, Arlington, VA 22201-2508.
Those interested in attending this public meeting must register at:
https://www.fmcsa.dot.gov/fastact/csa. Participants have the option of
registering to attend in person, or via webinar.

FOR FURTHER INFORMATION CONTACT: For information about the public
meeting or for information on facilities or services for individuals
with disabilities or to request special assistance at the meeting,
contact Ms. Barbara Baker, Compliance Division, at<PHONE_NUMBER> or by
email at [email protected], by August 27, 2018.
    If you have questions regarding viewing or submitting material to
the docket, contact Docket Services, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background

    Section 5221 of the FAST Act, titled ``Correlation Study,''
required FMCSA to commission the National Research Council of the
National Academies to conduct a study of FMCSA's Compliance, Safety,
Accountability (CSA) program and Safety Measurement System (SMS). SMS
is FMCSA's algorithm for identifying patterns of non-compliance and
prioritizing motor carriers for interventions. FMCSA is prohibited from
publishing SMS percentiles and alerts on the SMS website for motor
carriers transporting property until the NAS Correlation

Study is complete and all reporting and certification requirements
under the FAST Act are satisfied.
    On June 27, 2017, NAS published the report titled, ``Improving
Motor Carrier Safety Measurement.'' The report is available at https://www.nap.edu/catalog/24818/improving-motor-carrier-safety-measurement. A
copy of the report has been placed in the docket referenced at the
beginning of this notice.
    Pursuant to the FAST Act, FMCSA submitted the results of this study
to both Congress and the DOT OIG on August 7, 2017. The FAST Act also
requires FMCSA to submit an action plan to the Senate Committee on
Commerce, Science, and Transportation; and the House of Representatives
Transportation and Infrastructure Committee.
    To solicit input during the development of the corrective action
plan, FMCSA hosted a public meeting on September 8, 2017. Information
from the public meeting was incorporated into the action plan. The
corrective action plan was transmitted on June 25, 2018. The OIG is
required to review the action plan and submit a report to Congress on
the responsiveness of the FMCSA's plan to the NAS report's
recommendations.
    FMCSA's corrective action plan includes solicitation of input from
the public for recommendations 2, 3 and 4. As a result, FMCSA is
soliciting responses to the following questions at the public meeting
and through the docket referenced above.

NAS Recommendation 2

    FMCSA should continue to collaborate with States and other agencies
to improve the quality of the Motor Carrier Management Information
System (MCMIS) data in SMS. Two specific data elements require
immediate attention: Carrier exposure and crash data. The current
exposure data (e.g., Power Unit (PU) and Vehicle Miles Traveled (VMT)
data) are missing with high frequency, and data that are collected are
likely of unsatisfactory quality.

Questions

    1. What should FMCSA do to improve the collection of PU, VMT, and
driver count data? For example, should FMCSA use edit checks to verify
the accuracy of the data?
    2. VMT, PU, and number of inspections are the current measures of
exposure used in SMS. Are there other ways FMCSA should consider
measuring carrier exposure with data that is already available to
FMCSA?
    3. What are the current challenges that motor carriers face in
reporting VMT data?
    4. What information is available from the States to improve
exposure data?
    5. What additional data should FMCSA consider collecting from
carriers? Why?
    6. What external sources of exposure and crash data should FMCSA
explore?
    7. In addition to the data currently collected by FMCSA, what other
exposure data would motor carriers be willing to share?
    i. More frequent updates to mileage and PU data
    ii. Number/type of trips
    iii. Mileage breakdown by State
    iv. Other options?
    8. What incentives would encourage motor carriers to share
additional information?

NAS Recommendation 3

    FMCSA should investigate ways of collecting data that will likely
benefit the recommended methodology for safety assessment. This
includes data on carrier characteristics--such as information on driver
turnover rate, type of cargo, method and level of compensation, and
better information on exposure.

Questions

    1. What additional data should FMCSA consider collecting to support
the recommended methodology for safety assessment (i.e., IRT model)?
    a. Would this data be useful for safety assessments?
    b. What are the challenges to collecting or using the data
recommended by NAS?

i. Driver turnover rate
ii. Type of cargo
iii. Method of compensation
iv. Level of compensation
v. Better information on exposure

    2. What pay-related and/or driver-turnover-related data would
carriers be willing to share?

NAS Recommendation 4

    FMCSA should structure a user-friendly version of the MCMIS data
file used as input to SMS without any personally identifiable
information to facilitate its use by external parties, such as
researchers, and carriers.

Questions

    FMCSA is planning to develop a web page to make simplified MCMIS
data snapshots available to researchers, motor carriers, safety
consultants, and the public
    1. What features should this web page include?
    2. If the information collected in recommendation 3 above is used
within the IRT model, should it be made available publicly to allow a
full replication of the results?
    3. What features should a user-friendly MCMIS data file include?
    4. Would industry stakeholders find a user-friendly MCMIS data file
useful? Why?
    5. How often should this user-friendly MCMIS data file be updated
(e.g., monthly, quarterly, annually etc.)?

    Issued under the authority delegated in 49 CFR 1.87 on: August
13, 2018
Raymond P. Martinez,
Administrator.
[FR Doc. 2018-17987 Filed 8-20-18; 8:45 am]
 BILLING CODE 4910-EX-P


Note:  February 11, 2011
Copyright-Protected Materials: Citations for three journal articles and one unpublished manuscript that were provided as hard copies to the SAP members

The publishers provided Dow AgroSciences limited copyright-release for 30 hard copies of each item (noted below) to be made available to the panel members, the OPP Regulatory Docket and FIFRA SAP staff.  The publicly available hard copy may be viewed at the OPP Regulatory Public Docket (7502P), Environmental Protection Agency, Rm. S - 4400, One Potomac Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA

:: Luecke, RH.; Pearce, B.A; Wosilait, W.D.; Slikker, W.; Young, J.F. (2007) "Postnatal Growth
Considerations for PBPK Modeling." Journal of Toxicology and Environmental Health: Part A. 70: 1027-
1037.
:: Timchalk, C.; Nolan, RJ.; Mendrala, AL.; Dittenber, D.A; Brzak, K.A; Mattsson, J.L. (2002) "A
Physiologically Based Pharmacokinetic and Pharmacodynamic (PBPKJPD) Model for the
Organophosphate Insecticide Chlorpyrifos in Rats and Humans." Toxicological Sciences. 66:34-53.

:: Young, J.F.; Luecke, RH.; Pearce, B.A; Lee, T.; Ahn, H.; Baek, S.; Moon, H.; Dye, D.W.; Davis, T.M.;
Taylor, S. J. (2009) "Human OrganlTissue Growth Algorithms that Include Obese Individuals and
BlacklWhite Population Organ Weight Similarities from Autopsy Data." Journal of Toxicology and Environmental Health: Part A. 72:527-540.

::.Smith, J.N.; Timchalk, C.; Bartels, M.J.; Poet, T.S. (2010) "In vitro Age-Dependent Enzymatic Metabolism of Chlorpyrifos and Chlorpyrifos-Oxon in Human Hepatic Microsomes as well as Chlorpyrifos-Oxon in Plasma." Manuscript prepared for submission and publication process. [Note:  A one-page summary is found in Attachment A.]