1 SUPPORTING STATEMENT 1. Identification of the Information Collection Title: Cooperative Agreements and Superfund Contracts for Superfund Response Actions ( OMB Control number 2050 0179; EPA ICR No. 1487.07).

This is a request for a renewal of an existing Information Collection Request ( ICR) due to expire on September 30, 2001. The title of this submission is: " Cooperative Agreements and Superfund Contracts for Superfund Response Actions." This ICR authorizes the collection of information under EPA's Superfund Rule ( 40 CFR 35 Subpart O) that establishes the administrative requirements for CERCLA funded cooperative agreements for State, political subdivisions, and Federally recognized Indian tribal government response actions. The regulation includes only those provisions as mandated by CERCLA, required by OMB circulars, or added by EPA to ensure sound and effective financial assistance management. The information required by this regulation will be used by EPA award officials to make assistance awards, to approve payments, and to verify that the recipients, in using Federal funds appropriately, comply with OMB Circulars and meet the cost recovery provisions of CERCLA.

2. Need for/ Use of the Collection 2( a). Need   This ICR is necessary due to the information collection and reporting requirements in the Superfund rule ( 40 CFR Part 35 Subpart O) entitled, " Cooperative Agreements and Superfund Contracts for Superfund Response Actions." Due to the statutory cost recovery requirements in CERCLA and the need to carefully track all costs, Superfund recipients must comply with administrative requirements sufficient to meet these provisions of the law. The regulation sets forth the pre award, post award, and after the cooperative agreement requirements which are conditions for receiving/ managing a Superfund cooperative agreement or a Superfund State Contract ( SSC). This information is needed by EPA project officers, grant specialists, and finance officials to manage/ oversee the funding activities and cleanup activities at Superfund sites. EPA also uses the information to update the Comprehensive Environmental Response, Compensation, and Liability Information System ( CERCLIS) which tracks progress made at Superfund sites.

2( b). Use   The pre award information is used to qualify cooperative agreement applicants and award cooperative agreements. The post award information is used to meet the statutory and regulatory requirements and monitor recipient performance. The closeout information is used to meet reporting and record keeping requirements necessary for cost recovery purposes and for closing out awards. The information is necessary to ensure minimum fiscal control and accountability for Hazardous Substances Superfund money to deter waste, fraud, and abuse. 2 The Superfund rule also supplements EPA's general assistance regulation, 40 CFR Part 31, the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Part 31, which implements the requirements of OMB Circular A 102, became effective for awards made on or after October 1, 1988. The Part 31 rule ( common rule) established uniformity among Federal agencies that award Federal grants and cooperative agreements to States, political subdivisions thereof, and Federally recognized Indian Tribal Governments. Many of the information collection requirements for Superfund cooperative agreements were approved under the OMB Paperwork Clearance # 2030 0020 associated with 40 CFR Part 31 prior to this ICR. See Table 1 below.

Table 1  Burdens covered under other ICRs Task/ Burden # of ICR task/ burden is imposed under SF 269 ( annually) 2030 0020 SF 334 2030 0020 SF 424 2030 0020 SF 424A 2030 0020 List of Sites partially covered under HRS EPA 5700 48 2030 0020 EPA 5700 49 2030 0020 Anti lobbying certification 0348 0046 Health and safety plan partially covered under HRS Quality assurance plan 2030 0403 Site description NCP Site specific statement of work ( SOW) NCP Site specific community relations plan NCP Schedule of deliverables NCP Quarterly Progress reports Part 31 Property inventory reports Part 31 Financial reports Part 31 Due to statutory cost recovery requirements, and the need to carefully track costs by site and activity, Superfund recipients must comply with all administrative requirements to satisfy the provisions of the law. There are additional requirements in the Superfund rule, which 3 supplements Part 31, and are essential for effective cost recovery from potentially responsible parties. The following identifies the information collection requirements contained in this regulation:

( 1) Sections 35.6055( a)( 2) and ( b)( 2)( I) and ( ii); 35.6105( a)( 2)( I)( ii)( v), ( vii); 35.6105( b); 35.6110( b)( 2); 35.6120; 35.6145; 35.6155( a), ( c); 35.6230( a), ( c); 35.6300( a)( 3); 35.6315( c); 35.6320; 35.6340( a), 35.6350' 35.6500; 35.6550( a)( ii), ( b)( I)( iii) and ( 2( I); 35.6585; 35.6595( a); 35.6650; 35.6700; 35.6705, 35.6710; 35.6805; and 35.6815( a)( d), of the Superfund rule contain collection of information requirements. These involve: applications; certifications regarding debarment, suspension and other responsibility matters; procurement certifications; antilobbying certifications; intergovernmental reviews; health and safety plans; community relations plans; quality assurance plans; accounting and financial records, property purchase cost comparison and user rate analysis; property procurement and disposition, cost, price, or profit analysis; technical performance reports; property inventory reports; procurement reports; financial reports; records retention; records access; and closeout.

All of the above sections were originally cleared under ICR No. 0938.07 ( OMB Control number 2030 0020) for use through 9/ 30/ 01.

3. Non duplication, Consultations, and other Collection Criteria 3( a). Non duplication   There is no other known source for this information.

3( b). Public Notice Required Prior to ICR Submission to OMB. The first notification of this request for renewal of an existing Information Collection Request ( ICR) was published in the Federal Register on May 10, 2001 ( copy attached   Table A). No responses were received during the sixty day comment period.

3( c). Consultations  A panel of EPA regional staff members and state environmental agency staff with extensive experience in managing and supervising Superfund cooperative agreements were consulted in detail during the process of producing this information collection. These consultations consisted of several conference calls where potential and actual burdens imposed on states and political subdivisions by the Superfund rule were discussed. The experience of the staff involved allowed for a more detailed burden calculation.

3( d). Effects of Less Frequent Collection   There is no fixed schedule for the collection of this information. It is required on an " as needed" basis as stated in the final Superfund rule ( 40 CFR 35 Subpart O) entitled " Cooperative Agreements and Superfund Contracts for Superfund Response Actions."

3( e). General Guidelines   The information collection is consistent with the guidelines set forth in 5 CFR 1320.6 of the Paperwork Reduction Act Guidelines. 4 3( f). Confidentiality   No confidentiality is provided and no sensitive information is collected under this ICR.

3( g). Sensitive Questions   Sensitive questions are not associated with the information collection activities performed under the Superfund rule.

4. Respondents and Information Requested 4( a). Respondents/ SIC Codes   Respondents in this collection effort are State, political subdivision, and Federally recognized Indian tribal governments. There are currently no systems applying current technology that would reduce this burden. In consideration of Federalism, Executive Order 13132, reporting and record keeping is kept to a minimum. The Standard Industrial Code for all respondents is 921190 ( Other General Government Support).

4( b). Information Requested   Local and Indian tribal government recipients are required to follow the minimum financial, property, procurement, and general administrative procedures necessary to recover funds for the Hazardous Substance Superfund. State recipients are also required to adhere to these standards due to cost recovery. Recipients may choose to follow their own procurement procedures by certifying that their procedures meet the intent of the regulatory requirements. Data respondents are typically required to submit includes, but is not limited to: financial statements, bills, receipts, reports, etc.

5. The Information Collected   Agency Activities, Collection, Methodology and Information Management 5( a). Agency Activities   Most of the information will be collected using standardized reports and record keeping appropriate to support cost recovery. The grants information is entered into GICS, the Agency's database for tracking the status of grant/ cooperative agreement actions. The technical ( programmatic) information is entered into CERCLIS the Agency's database for tracking the status of all response activities at Superfund sites, and financial information is entered into IFMS, the Agency's database for tracking financial management.

5( b). Collection Methodology and Management   These reports are reviewed in accordance with the requirements of 40 CFR Part 35 Subpart O. Superfund recipients must retain records for 10 years following the submission of the final Financial Status Report, and must retain those records longer if an enforcement action is ongoing. This ensures that response action information will be available to support EPA litigation efforts to recover Superfund costs from responsible parties. The Agency also conducts periodic on site reviews to ensure recipient compliance with applicable requirements. 5 5( c). Small Entity Flexibility   The information requirements do not pertain to small business or other small entities.

5( d). Collection Schedule   The collection schedule for these Cooperative Agreements and Superfund Contracts is variable depending on such factors as: Date of applications, magnitude of efforts, and project periods, etc.

6. Estimating the Respondent Burden and Cost of Collection 6( a). Estimating the respondent burden  A " unit" burden is the burden incurred by a respondent for performing a Cooperative Agreement ( CA) specific activity. States incur burdens under an estimated 358 Cooperative Agreement and Superfund State Contract ( SSC) activities per year for reporting, certifications, schedules, notifications, assurances, and record keeping activities. The estimated burden is incurred by activities under the following types of CAs/ SSCs and other requirements:

° Pre remedial Cooperative Agreements; ° Remedial Response Cooperative Agreements; ° Enforcement Cooperative Agreements; ° Removal Cooperative Agreements; ° Core Program Cooperative Agreements; ° Support Agency Cooperative Agreements; ° Records Retention; ° Superfund State Contract; ° Conclusion of the SSC; and ° Consolidated Funding.

The estimated average burden associated with each CA/ SSC/ Other requirement is discussed below and summarized in Table 2. 6 Table 2  State Burden Activity Unit Burden ( Hours) Unit Labor Cost ( Dollars) Total Unit Cost ( Dollars) Average number of respondents per Year ( Full) Average number of potential respondents* ( Amendments) Total Burden ( Hours) Total Cost ( Dollars)

Pre remedial CA 6.8 $ 32.46 $ 220.78 33 26 283.33 $ 9,199.17 Remedial response CA 10.84 $ 32.46 $ 351.87 30 19 393.85 $ 12,784.61 Enforcement CA 43.36 $ 32.46 $ 1,407.47 1 0 43.36 $ 1,407.47 Removal response CA 42.36 $ 32.46 $ 1,375.00 21 1 903.68 $ 29,333.33 Core program CA 8 $ 32.46 $ 259.68 22 22 234.67 $ 7,617.28 Support agency CA 4 $ 32.46 $ 129.84 45 36 228.00 $ 7,400.88 Records retention 5.6 $ 32.46 $ 181.44 375 0 2100 $ 68,040.00 SSC 20 $ 32.46 $ 649.20 52 0 1040.00 $ 33,758.40 Conclusion of SSC 1.5 $ 32.46 $ 48.69 0 0 0 $ 0.00 Consolidated funding 68 $ 32.46 $ 2,207.28 2 3 204.00 $ 6,621.84 TOTAL 581 107 5430.89 $ 176,162.98 TOTAL NUMBER OF RESPONDENTS 581*

TOTAL BURDEN HOURS WITHOUT AMENDMENTS 5115 AVERAGE BURDEN HOURS PER RESPONDENT* 8.8*

AVERAGE TOTAL COST PER BURDEN HOUR $ 32.46 * Amendment respondents are assumed to have only 1/ 3 of the burden imposed as Full respondents, since the process of amending is not as extensive as it is for a new application for a CA. Current Subpart O language does not address amendments / changes to CAs, which are covered under Part 31, so neither the number of recipients, nor the respective burden hours, are included in this calculation.

If any burdens were found to be imposed in the ICR by a rule that supercedes Subpart O, those burdens, or a percentage of those burdens, were removed from the overall burden calculation for Subpart O ( See Table 1). The average yearly number of respondents was 7 calculated using the CERCLIS3 and IFMS databases. The answers provided by a nation wide Consolidated funding survey of EPA regions was also used to assist in the estimation of imposed burden. The total number of respondents has increased since the last ICR was issued, as has the overall burden imposed. The extensive discussion of the requirements of this rule with EPA regional staff, the process used in meeting those requirements, and the evolution of those processes, resulted in a slightly higher burden estimate than was estimated in the prior ICR.

6( b): Estimating the respondent burden  The unit burden ( hours) imposed upon States, Indian tribes, and Political subdivisions was determined by gathering the burden estimates for all tasks associated with each activity type. This data was provided through interviews and meetings with EPA Regional staff members and State environmental agency staff who work extensively with Superfund Cooperative agreements and Superfund State contracts. The estimated burden for each task was averaged and the activity burden was calculated by aggregating the average burden for each task within the activity, minus any tasks or burden covered under other ICR's.

In estimating the unit labor cost, a weighted hourly rate is used. This wage rate reflects the assumptions that the total number of hours that are necessary for each activity are divided across three labor categories. 20 percent of the total hours for each activity are allocated to managerial and professional staff for their direction, professional input, and review of activities. 70 percent of the hours are allocated to technical staff for conducting a technical analysis and activities. 10 percent of the total hours are allocated to the support staff for their preparation of documents.

For all activities covered by this ICR, wage rates for State, Tribal, and Political subdivision personnel are estimated to be comparable to those of Federal government personnel. These wage rates were estimated based upon corresponding Federal GS wage rates as of January 2001. The rates, as outlined below, also include fringe benefits estimated to be 60% of direct salary.

Management GS 13, step 1 $ 43.96/ hour Technical GS 11, step 1 $ 30.84/ hour Clerical GS 7, step 1 $ 20.84/ hour Based upon the above, the weighted average [( 43.96* 0.2)+( 30.84* 0.7)+( 20.84* 0.1)] is $ 32.46/ hour.

The estimated burden associated with Pre remedial Cooperative Agreements represents the number of hours that are spent in research, data collection, analysis, negotiation, and preparation of the Pre remedial Cooperative Agreement. EPA estimates that approximately 33 Pre remedial Cooperative Agreements involving states, tribes, or Political subdivisions, will be in place each year. EPA estimates that an average of 6.8 hours are necessary to prepare all the plans, compliance documents, lists and schedules required in the application for this type of cooperative agreement within Subpart O. 8 The estimated burden associated with Remedial Response Cooperative Agreements represents the number of hours that are spent in research, plan preparation, data collection, analysis, and negotiation in preparing the materials required for a Remedial response Cooperative Agreement. EPA estimates that approximately 30 Remedial response Cooperative Agreements, which involve states, Tribes, and Political subdivisions, will be in place each year. EPA estimates that an average of 10.84 hours are necessary to prepare all the materials required in an application for this type of cooperative agreements. Those materials include: a project narrative, which includes much more site specific information than a project narrative for a Pre remedial CA; compliance documents and certifications; CERCLA assurances; and notifications. The majority of the burden under this CA is associated with the preparation of the schedule of deliverables. Though the format of that schedule is fairly standard, the planning and negotiation involved can be time consuming. This estimate is based on a consensus of EPA regional staff who deal almost exclusively with cooperative agreements.

The estimated burden associated with Enforcement Cooperative Agreements represents the number of hours that are spent in research, plan and certification documentation preparation, such as the quality assurance plan, data collection, and analysis in the preparation of materials involved in acquiring and operating within an Enforcement Cooperative Agreement. EPA estimates that an average of 1 Enforcement Cooperative Agreement will be in place each year. The Superfund grants program workgroup estimates that 43.36 hours are needed to fulfill the requirements imposed by this type of cooperative agreement. Those requirements include: creating the site description; creating the site specific statement of work; producing the statement designating lead site project manager; creating the site specific health and safety plan; producing the quality assurance plan; developing the schedule of deliverables; and producing a copy of the applicable state, local, or tribal statutes. The majority of the burden is imposed by the creation of the site specific statement of work, the quality assurance plan, and the schedule of deliverables.

The estimated burden associated with Removal Response Cooperative Agreements represents the number of hours that are spent in research, plan preparation, data collection, analysis, and negotiation in preparing the materials required for a Removal Response Cooperative Agreement. EPA estimates that approximately 21 Removal Response Cooperative Agreements, which involve states, Tribes, and Political subdivisions, will be in place each year. EPA estimates that an average of 42.36 hours are necessary to prepare all the materials required for this type of cooperative agreement. Those required materials include: a site description; a site specific statement of work; a statement designating lead site project manager; a site specific community relations plan; a site specific health and safety plan; a quality assurance plan; a schedule of deliverables. Program experience has shown that the majority of the burden imposed under the requirements for this type of cooperative agreement can be attributed to the schedule of deliverables and the quality assurance plan.

The estimated burden associated with Core Program Cooperative Agreements represents the number of hours that are spent in research, data collection, analysis, and negotiation in preparing the materials required for a Core Program Cooperative Agreement. EPA estimates that 22 Core 9 Program Cooperative Agreements, which involve states, Tribes, and Political subdivisions, will be in place each year. Superfund program experience indicates that 8 hours are needed to fulfill the requirements imposed by this type of cooperative agreement. Those requirements include a statement of work, and a background statement. Those two requirements are responsible for the burden attributed to Core Program Cooperative Agreements.

The estimated burden associated with Support Agency Cooperative Agreements represents the number of hours that are spent in research, data collection, analysis, and negotiation in preparing the materials required for a Support Agency Cooperative Agreement. EPA estimates that approximately 45 Support Agency Cooperative Agreements, which involve states, Tribes, and Political subdivisions, will be in place each year. EPA estimates that an average of 8 hours are needed to prepare all the materials required for this type of cooperative agreement. The burden imposed by a Support Agency Cooperative Agreement can attributed to the required statement of work.

The estimated burden associated with the Project Records requirements represents the number of hours that are spent each year beyond the 10 year ( Superfund) retention requirement for record maintenance, storage, and any document requests that would be made throughout the year. All cooperative agreements must meet these Project Records requirements, and incur the resulting burden. EPA estimates that approximately 152 cooperative agreements will be in place each year. Superfund program experience indicates that an average of 5.6 hours will be required each year to meet the burden imposed by Subpart O's Project Records requirements.

The estimated burden associated with the Contents of an SSC represents the number of hours that are spent in research, data collection, analysis, negotiation, and preparation of the SSC each year. EPA estimates that approximately 52 SSCs are in place each year. The Superfund grants program workgroup estimates that 20 hours are needed to meet the burden imposed by the requirements under an SSC. Those requirements include: General Authorities; Purpose statement; site description; statement to follow guidance; statement of work; schedule of deliverables; SPOC; CERCLA assurances; list of Support agency Cooperative Agreements; sanctions for failure to comply with the terms of the SSC; site access; joint inspection of the remedy; exclusion of third party benefits; State review; and a list of responsible party activities.

The estimated burden associated with Consolidated Funding represents the number of hours that are spent in research, data collection, analysis, negotiation, and preparation of Consolidated Funding agreements each year. EPA estimates that approximately 2 Consolidated Funding agreements are in place each year. EPA estimates that approximately 68 hours a year are necessary to meet the requirements of a Consolidated Funding agreement. The majority of the burden complying with the requirements of this type of agreement are due to the fact that to initiate one Consolidated Funding Cooperative Agreement imposes about the same burden as three regular cooperative agreements. The amendment process, however, is much less costly and the number of amendments for Consolidated Funding Cooperative Agreements are far fewer than for a regular cooperative agreement. Amendment costs are tracked under Part 31. 10 6( c). Estimating Agency Burden and Costs  A " unit" burden is the burden incurred by a respondent for performing a Cooperative Agreement ( CA) specific activity. The Federal Government incurs a burden under an estimated 581 Cooperative Agreement and Superfund State Contract ( SSC) activities per year for reporting, certifications, schedules, notifications, assurances, and record keeping activities. The unit burden ( hours) imposed upon the Federal government was determined by gathering the burden estimates for all tasks associated with each activity type. This data was provided through interviews and meetings with EPA Regional and Headquarters staff members who work extensively with Superfund Cooperative agreements and Superfund State contracts. The estimated burden for each task was averaged and the activity burden was calculated by aggregating the average burden for each task within the activity, minus any tasks or burden covered under other ICR's.

In estimating the unit labor cost, a weighted hourly rate is used. This wage rate reflects the assumptions that the total number of hours that are necessary for each activity are divided across three labor categories. 20 percent of the total hours for each activity are allocated to managerial and professional staff for their direction, professional input, and review of activities. 70 percent of the hours are allocated to technical staff for conducting a technical analysis and activities. 10 percent of the total hours are allocated to the support staff for their preparation of documents.

For all activities covered by this ICR, wage rates were estimated based upon the Federal GS wage rates as of January 2001. The rates, as outlined below, also include fringe benefits estimated to be 60% of direct salary.

Management GS 13, step 1 $ 43.96/ hour Technical GS 11, step 1 $ 30.84/ hour Clerical GS 7, step 1 $ 20.84/ hour Based upon the above, the weighted average [( 43.96* 0.2)+( 30.84* 0.7)+( 20.84* 0.1)] is $ 32.46/ hour.

The estimated burden is incurred by activities under the following types of CAs/ SSCs and other requirements:

° Pre remedial Cooperative Agreements; ° Remedial Response Cooperative Agreements; ° Enforcement Cooperative Agreements; ° Removal Cooperative Agreements; ° Core Program Cooperative Agreements; ° Support Agency Cooperative Agreements; ° Records Retention; ° Superfund State Contract; ° Conclusion of the SSC ° Consolidated Funding. 11 The estimated average burden associated with each CA/ SSC/ Other requirement is discussed below and summarized in Table 3, below.

Table 3  Federal Burden Activity Unit Burden ( Hours) Unit Labor Cost ( Dollars) Total Unit Cost ( Dollars) Average number of respondents per Year ( Full) Average number of potential respondents* ( Amendments) Total Burden ( Hours) Total Cost ( Dollars)

Pre remedial CA 23 $ 32.46 $ 746.58 33 26 958.3 $ 31,107.39 Remedial response CA 36.4 $ 32.46 $ 1,181.54 30 19 1322.53 $ 42,929.32 Enforcement CA 35 $ 32.46 $ 1,136.10 1 0 35 $ 1,136.10 Removal response CA 36 $ 32.46 $ 1,168.56 21 1 768 $ 24,929.28 Core program CA 15 $ 32.46 $ 486.90 22 22 440 $ 14,282.40 Support agency CA 14 $ 32.46 $ 454.44 45 36 798 $ 25,903.08 Records retention 2 $ 32.46 $ 64.92 375 0 750 $ 24,345.00 SSC 40 $ 32.46 $ 1,298.40 52 0 2080 $ 67,516.80 Conclusion of SSC 13 $ 32.46 $ 421.98 0 0 0 $ 0 Consolidated funding $ 32.46 2 3 TOTAL 581 107* 7151.83* $ 232,149.37 TOTAL NUMBER OF RESPONDENTS 581*

AVERAGE BURDEN HOURS PER RESPONDENT* 12.31*

AVERAGE TOTAL COST PER BURDEN HOUR $ 32.46 * Amendment respondents are assumed to have only 1/ 3 of the burden imposed as Full respondents, since the process of amending is not as extensive as it is for a new application for a CA. Current Subpart O language does not address amendments / changes to CAs, 12 which are covered under Part 31, so neither the number of recipients, nor the respective burden hours, are included in this calculation.

As shown in Table 3, the total number of hours and the cost to EPA are summarized below.

Federal Hours/ Respondent x # of Respondents  12.31 hours x 581 respondents = 7152 hours Federal Cost/ Respondent x # of Respondents  $ 399.57 x 581 respondents = $ 232,150 6( d): Estimating the Respondent Universe and Total Burden and Costs  EPA estimates that an average of 581 respondents per year will enter into cooperative agreements annually to lead Superfund cleanups and 107 respondents will amend these cooperative annually during the period covered by this ICR. The burden imposed by amendments to cooperative agreements is covered under 40 CFR Part 31. Table 2 details these costs by activity.

The burden imposed on respondents is shown in Table 2, and summarized below.

State Hours/ Respondent x # of Respondents  8.8 hours x 581 respondents = 5,115 hours State Cost/ Respondent x # of Respondents  $ 303.21 x 581 respondents = $ 176,163 6( e). Bottom line Burden Hours and Cost Tables  The unit burden ( hours) imposed upon the Federal government and respondents was determined by gathering the burden estimates for all tasks associated with each activity type. This data was provided through interviews and meetings with EPA Regional and Headquarters staff members who work extensively with Superfund Cooperative agreements and Superfund State contracts. The estimated burden for each task was averaged and the activity burden was calculated by aggregating the average burden for each task within the activity, minus any tasks or burden covered under other ICR's.

TOTAL ESTIMATED RESPONDENT ( STATE) BURDEN AND COST SUMMARY State Hours/ Respondent x # of Respondents  8.8 hours x 581 respondents = 5,115 hours State Cost/ Respondent x # of Respondents  $ 303.21 x 581 respondents = $ 176,163 TOTAL ESTIMATED AGENCY BURDEN AND COST SUMMARY Federal Hours/ Respondent x # of Respondents  12.31 hours x 581 respondents = 7152 hours Federal Cost/ Respondent x # of Respondents  $ 399.57 x 581 respondents = $ 232,149 6( e). Reason for changes  EPA regional staff members and state environmental agency staff with extensive experience in managing and supervising Superfund cooperative agreements were consulted in detail during the process of producing this information collection. These 13 consultations consisted of several conference calls where potential and actual burdens imposed on states and political subdivisions by the Superfund rule were discussed. The experience of the staff involved provides for more accuracy in the burden calculation.

This data is requested to comply with the provisions mandated by: Statute or regulations ( 40 CFR Part 30 AND 31); OMB Circulars; or added by EPA to ensure sound and effective assistance management. Accurate, complete data is required to obtain funding, while no pledge of confidentiality is provided.

6( g): Burden Statement The average calculated burden imposed by the Superfund rule upon States and Political subdivisions is 8.8 hours per respondent, at an average cost of $ 303.21 per respondent and a total of 5,112 hours, and a total cost of $ 176,163. The average calculated burden imposed by the Superfund rule upon the Federal Government is 12.31 hours per respondent for a total of 7152 hours, at an average cost of $ 399.57 per respondent and a total cost of $ 232,149.

Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.

Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, Collection Strategies Division, U. S. Environmental Protection Agency ( 2822), 1200 Pennsylvania Ave., NW, Washington, D. C. 20460; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Include the EPA ICR number and OMB control number in any correspondence.


[Federal Register Volume 84, Number 239 (Thursday, December 12, 2019)]
[Notices]
[Pages 67985-67987]
[FR Doc No: 2019-26810]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87682; File No. SR-CBOE-2019-110]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Rule 5.31, Opening Auction Process

December 9, 2019.
    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 December 2, 2019, Cboe Exchange, Inc. (``Cboe Options'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 5.31.

(additions are in italics; deletions are [bracketed])

* * * * *

Rules of Cboe Exchange, Inc.

* * * * *

Rule 5.31. Opening Auction Process

    (a)-(c) No change.
    (d) Opening Rotation Triggers. Upon the occurrence of one of the
following triggers for a class, the System initiates the opening
rotation for the series in that class, and the Exchange disseminates
a message to market participants indicating the initiation of the
opening rotation.
    (1) Regular Trading Hours. The System initiates the opening
rotation (A) [A]after a time period (which the Exchange determines
for all classes) following the System's observation after 9:30 a.m.
of the first disseminated ([A]i) transaction on the primary market
in the security underlying an equity option or ([B]ii) index value
for the index underlying an index option (except for VIX Index
options)[, the System initiates the opening rotation] or (B) at 9:30
a.m. for VIX Index options.
* * * * *

    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange 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 Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Prior to the Exchange's technology migration, which occurred on
October 7, 2019, the Exchange's System initiated the opening rotation
procedure for index options either at a specified time or at the time
the Exchange received a disseminated index value (determined on a
class-by-class basis).\3\ The Exchange determined that options on the
Cboe Volatility Index (the ``VIX Index'') would be one of the classes
to open at a specified time rather than after it received the first
disseminated VIX Index value. The Exchange proposes to revert to
opening VIX options at a specified time. Specifically, the Exchange
proposes to amend Rule 5.31(d)(1) to provide that the System will
initiate the opening rotation for VIX options at 9:30 a.m. Eastern
time, rather than after the System's observation after 9:30 a.m.
Eastern time of the first disseminated value of the VIX Index.\4\
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    \3\ See Securities Exchange Act Release No. 86879 (September 5,
2019), 84 FR 47984 (September 11, 2019) (SR-CBOE-2019-034) (which
proposed rule filing amended and relocated the Exchange's rule
regarding the opening process, included former Rule 6.2(b)(i)(A)(2),
which stated that with respect to index options, at 8:30 a.m.
Central time, or at the later of 8:30 a.m. Central time and the time
the Exchange receives a disseminated index value for classes
determined by the Exchange, the System initiated the opening
rotation procedure for regular trading hours).
    \4\ The proposed rule change also makes nonsubstantive changes
to the structure of Rule 5.31(d)(1).
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    The System generally does not receive the first disseminated value
of the VIX Index until approximately 9:31 a.m., which means the System
cannot initiate the opening rotation procedure for VIX options until
after that time. This delay prevents investors from being able to
effect trades in VIX options while trading in other products, which may
prevent investors from being able to engage in their standard trading,
hedging, and volatility risk management activities during that time.
    The value of the VIX Index is calculated using the bid and ask
quotes of SPX options listed on the Exchange. Pursuant to Rule
5.31(d)(1), the System will initiate the opening rotation procedure for
SPX options following the receipt of the first disseminated SPX value
after 9:30 a.m., which as noted above, generally occurs at 9:30:01.
Therefore, the opening rotation for SPX options will generally begin a
few seconds after 9:30 a.m. The VIX Index value cannot be calculated,
and thus disseminated, until the SPX option

series used to calculate the value are all open for trading. Once that
occurs, and the VIX Index value is disseminated, the Exchange can then
initiate the opening rotation for VIX Index options. As a result, VIX
Index options are not eligible to open for trading for a longer amount
of time than other index options. The Exchange understands that market
participants generally do not use the spot value of the VIX Index for
pricing VIX options but rather use the pricing of VIX Index futures
(``VX futures'') that trade on the Cboe Futures Exchange (``CFE''),
which are trading at 9:30 a.m. Thus, the Exchange does not believe it
is necessary to delay the opening of trading of VIX Index options until
the Exchange receives a disseminated value of the VIX Index.\5\
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    \5\ The Exchange notes the opening rotation for VIX Index
options during the Global Trading Hours session begins at a
specified time, rather than after dissemination of the VIX Index
value. See Rule 5.31(d)(2).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\6\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ Id.
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    In particular, the Exchange believes the proposed rule change will
remove impediments to and perfect the mechanism of a free and open
market and protect investors, because it will permit VIX Index options
to open, and thus permit market participants to begin trading these
options, at an earlier time. The Exchange believes opening VIX Index
options earlier will permit investors to begin effecting trades in
these options at a similar time as they may begin effecting trades in
other options. Investors will therefore be able to use VIX Index
options as part of their trading, hedging, and portfolio risk
management activities during that time, which ultimately benefits
investors. The Exchange notes the opening rotation for VIX Index
options during the Global Trading Hours session begins at a specified
time, rather than after dissemination of the VIX Index value.\9\
Additionally, the rules of another options exchange permit index
options to open at 9:30 a.m., rather than wait for the dissemination of
the underlying index value.\10\
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    \9\ See Rule 5.31(d)(2).
    \10\ See BOX Exchange LLC (``BOX'') Rule 6080(b).
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    The proposed rule change does not modify the opening auction
process, but rather makes it possible for it to begin in a timelier
manner for one option class. Therefore, the Exchange believes its
opening process will continue to contribute to a fair and orderly
opening of VIX options.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition, because the proposed rule change will apply in
the same manner to all Users. Trading in VIX Index options will open
and be available to all Users at the same time; the proposed rule
change merely makes it possible for trading in these options to open
earlier. The Exchange does not believe that the proposed rule change
will impose any burden on intermarket competition, because the rules of
another options exchange permit index options to open at 9:30 a.m.,
rather than wait to open until the exchange receives the first
disseminated value of the underlying index value.\11\ The Exchange
notes the opening rotation for VIX Index options during the Global
Trading Hours session begins at a specified time, rather than after
dissemination of the VIX Index value.\12\
---------------------------------------------------------------------------

    \11\ Id.
    \12\ See Rule 5.31(d)(2).
---------------------------------------------------------------------------

    The proposed rule change relates solely to the time at which
trading in VIX Index options (which are a proprietary product that only
trades on the Exchange) may begin. To the extent that the proposed
changes make the Exchange a more attractive marketplace for market
participants at other exchanges, such market participants are welcome
to become Exchange market participants.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
Because the 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, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \15\ and Rule 19b-
4(f)(6) thereunder.\16\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative for 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\18\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately. The Exchange states that
it believes the proposed rule change will protect investors by
permitting investors to begin trading VIX Index options at a similar
time at which they may begin to trade other options, thus allowing
investors to use VIX Index options as part of their trading, hedging,
and portfolio risk management activities. The Exchange also represents
that the proposed rule

change does not modify the opening auction process, but rather makes it
possible for this process to begin in a timelier manner for one option
class. Therefore, the Exchange believes its opening process will
continue to contribute to a fair and orderly opening of VIX options.
The Exchange further notes that initiating the opening process for an
index option at a specified time, rather than following dissemination
of the first value of the underlying index, is not novel or unique. The
Exchange represents that prior to October 7, 2019, VIX Index options
opened at a specified time, rather than after dissemination of the VIX
Index value. The opening rotation for VIX Index options during the
Global Trading Hours session also begins at a specified time, rather
than after dissemination of the VIX Index value.\19\ Additionally, the
Exchange notes that the rules of another options exchange permit index
options to open at 9:30 a.m., rather than waiting for the dissemination
of the underlying index value.\20\ For these reasons, the Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposal operative upon filing.\21\
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    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
    \19\ See Cboe Options Rule 5.31(d)(2).
    \20\ See BOX Rule 6080(b).
    \21\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    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 change 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-CBOE-2019-110 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2019-110. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2019-110, and should be submitted
on or before January 2, 2020.
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    \22\ 17 CFR 200.30-3(a)(12), (59).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-26810 Filed 12-11-19; 8:45 am]
 BILLING CODE 8011-01-P