[Federal Register Volume 82, Number 239 (Thursday, December 14, 2017)]
[Notices]
[Pages 59031-59035]
[FR Doc No: 2017-26913]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82247; File No. SR-OCC-2017-808]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Advance Notice, as Modified by Amendment No. 1,
Concerning the Adoption of a New Minimum Cash Requirement for the
Clearing Fund

December 8, 2017.
    Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, entitled Payment, Clearing
and Settlement Supervision Act of 2010 (``Clearing Supervision Act'')
\1\ and Rule 19b-4(n)(1)(i) under the Securities Exchange Act of 1934
(``Act''),\2\ notice is hereby given that on November 14, 2017, The
Options Clearing Corporation (``OCC'') filed with the Securities and
Exchange Commission (``Commission'') an advance notice as described in
Items I, II and III below, which Items have been prepared by OCC. On
November 22, 2017, OCC filed Amendment No. 1 to the advance notice.\3\
The Commission is publishing this notice to solicit comments on the
advance notice from interested persons.
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    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ In Amendment No. 1, OCC modified the proposed change to
Article VIII, Section 4(a) of the By-Laws to clarify that interest
earned on Clearing Fund cash deposits held at a Federal Reserve Bank
accruing to the benefit of Clearing Members would be calculated
daily based on each Clearing Member's pro rata share of Clearing
Fund cash. OCC did not propose any other changes to the filing in
Amendment No. 1.
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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    This advance notice is filed in connection with a proposed change
would (1) revise OCC's By-Laws to adopt a new minimum cash requirement
for the Clearing Fund; (2) revise OCC's By-Laws to provide for the
pass-through of interest earned on Clearing Fund cash held in OCC's
Federal Reserve bank account; (3) enact changes to OCC's Fee Policy
that reflect the pass through of interest earned on Clearing Fund cash
held in OCC's Federal Reserve bank account; and (4) make certain
conforming changes to OCC's Rules and By-Laws to affect the
aforementioned changes.
    The proposed changes to OCC's By-Laws and Rules were submitted as
Exhibits 5A and 5B of the filing, and OCC's Fee Policy was submitted as
confidential Exhibit 5C of the filing.\4\ The proposed change is
described in detail in Item 10 below. All terms with initial
capitalization not defined herein have the same meaning as set forth in
OCC's By-Laws and Rules.\5\
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    \4\ OCC has filed a proposed rule change with the Commission in
connection with the proposed change. See SR-OCC-2017-019.
    \5\ OCC's By-Laws and Rules can be found on OCC's public
website: http://optionsclearing.com/about/publications/bylaws.jsp.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

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

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

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

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

Description of the Proposed Change
    OCC proposes to establish a minimum cash contribution requirement
for its Clearing Fund in order to increase the amount of qualifying
liquid resources available to OCC to account for extreme scenarios that
may result in liquidity demands exceeding OCC's current Cover 1
liquidity resources, as calculated under the current historically-based
methodology, and provide for a more consistent level of cash resources
in its available prefunded financial resources. The proposed rule
change also would provide for the pass-through of interest income
earned on such deposits to its Clearing Members. OCC's current
practices and the proposed changes to such practices are described in
more detail below.
Current Practice
    Presently, Article VIII, Section 3(a) of OCC's By-Laws provides
that Clearing Fund contributions shall be in the form of cash and
Government securities, but neither OCC's By-Laws nor Rules

provides a minimum cash requirement for contributions in the Clearing
Fund. Article VIII, Section 4(a) of OCC's By-Laws allows for OCC to
invest cash contributions to the Clearing Fund, partially or wholly, in
OCC's account in Government securities, and to the extent that such
contributions are not so invested they shall be deposited by OCC in a
separate account or accounts for Clearing Fund contributions in
approved custodians. Article VIII, Section 4(a) of OCC's By-Laws,
however, presently does not account for the treatment of interest
earned on cash deposits held in the OCC's Federal Reserve bank account.
Proposed Change
1. Minimum Cash Clearing Fund Requirement
    OCC proposes to establish a minimum cash contribution requirement
for its Clearing Fund in order to increase the amount of highly liquid
resources available to OCC to account for extreme scenarios that may
result in liquidity demands exceeding OCC's current Cover 1 liquidity
resources, as calculated under the current historically-based
methodology, and provide for a more consistent level of cash resources
in its available prefunded financial resources.\6\ Specifically, the
proposed rule change would require that Clearing Members collectively
contribute $3 billion in cash to the Clearing Fund (``Cash Clearing
Fund Requirement''). Each Clearing Member's proportionate share of the
Cash Clearing Fund Requirement shall be equal in percentage to its
proportionate share of the Clearing Fund as determined by the Clearing
Fund allocation methodology in current Rule 1001.
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    \6\ OCC's Current Cover 1 liquidity resources are sized based on
the liquidity needed to address exposures derived solely from
historical results. Introducing the Cash Clearing Fund Requirement
would increase OCC's liquidity resources to address the exposures
observed in a stress liquidity analysis performed using proposed
sizing stress tests for OCC's Clearing Fund.
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    OCC has historically sized its liquidity resources based on
historically observed liquidity demands and analysis of potential large
forecasted liquidity demands over at least the next twelve months. OCC
forecasts its future daily settlement activity under normal market
conditions (e.g., mark-to-market settlements, and settlements resulting
from the expiration of derivatives contracts) and compares such demands
to its resources to ensure that at all times it will maintain a
positive liquidity position to meet settlement obligations.
    OCC has performed an analysis of its stress liquidity demands based
on a 1-in-70 year hypothetical market event. OCC started its analysis
by selecting the largest historical peak monthly settlements that
occurred over the historical look back period of data generated by the
stress test system. It then also selected certain large non-expiration
days to supplement the analysis. From this it estimated the mark-to-
market and cash settled exercise and assignment obligations for the
members driving the historical peak demand under the proposed stress
tests scenario to determine the stressed peak demand. Through this
analysis, OCC observed that peak stressed liquidity demands of the
largest 1 or 2 members, which normally occur in conjunction with
certain monthly expirations, can exceed the size OCC's committed
liquidity facilities (which currently total $3 billion). In these
cases, while OCC did have cash in the Clearing Fund to supplement its
liquidity resources, and the total of credit facilities and cash in the
Clearing Fund did cover these peak stressed liquidity demands, OCC is
unable to rely on these cash contributions to be present at any given
time since there is no obligation on members to maintain any amount of
their contribution in cash. As a result, OCC believes it is necessary
to increase or otherwise ensure the availability of highly liquid
resources in the Clearing Fund to account for extreme scenarios that
may result in liquidity demands exceeding OCC's Cover 1 liquidity
resources, as calculated under the current historically-based
methodology. The proposed Cash Clearing Fund Requirement, when taken
together with OCC's $3 billion in committed liquidity facilities, would
provide liquidity resources sufficient to cover 100% of the peak
stressed liquidity demands of the largest 1 or 2 members observed in
OCC's analysis.
    In addition, the proposed changes would allow OCC's Executive
Chairman, Chief Administrative Officer (``CAO''), or Chief Operating
Officer (``COO''), upon providing notice to the Risk Committee, to
temporarily increase the amount of cash required to be maintained in
the Clearing Fund up to an amount that includes the size of the
Clearing Fund as determined in accordance with Rule 1001 for the month
in question for the protection of OCC, clearing members or the general
public. Any determination by the Executive Chairman, CAO and/or COO to
implement a temporary increase in Clearing Fund size would (i) be based
upon then-existing facts and circumstances, (ii) be in furtherance of
the integrity of OCC and the stability of the financial system, and
(iii) take into consideration the legitimate interests of Clearing
Members and market participants.
    The proposed rule change would require that any temporary increase
in the Cash Clearing Fund Requirement be reviewed by the Risk Committee
as soon as practicable, but in any event within 20 calendar days of the
increase. In its review, the Risk Committee shall determine whether (1)
the increase in the minimum Cash Clearing Fund Requirement is no longer
required or (2) OCC's Clearing Fund contribution requirements and other
related rules should be modified to ensure that OCC continues to
maintain sufficient liquid resources to cover its largest aggregate
payment obligations in extreme but plausible market conditions. In the
event that the Risk Committee would determine to permanently increase
the Cash Clearing Fund Requirement, OCC would initiate any regulatory
approval process required to effect such a change.\7\ A Clearing Member
will be required to satisfy any increase in its required cash
contribution pursuant to an increase in the Cash Clearing Fund
Requirement no later than one hour before the close of the Fedwire on
the business day following OCC's issuance of an instruction to increase
cash contributions.
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    \7\ However, OCC will not decrease the Cash Clearing Fund
Requirement while the regulatory approvals for a change in the Cash
Clearing Fund Requirement are being obtained to ensure that OCC
continues to maintain sufficient liquid resources to cover its
liquidity demands during that time.
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    These changes would be reflected in new paragraph (a)(i) of Section
3 of Article VIII of OCC's By-Laws, as well as in new Interpretation
and Policy .04 to Section 3 of Article VIII.
2. Interest Pass Through for Clearing Fund Cash Held at the Federal
Reserve
    In connection with the proposed Cash Clearing Fund Requirement,
substantially all of OCC's Clearing Fund deposits consisting of cash
would be held in an account established by OCC at a Federal Reserve
Bank.\8\ OCC proposes that it would pass the interest income earned in
such account through to its Clearing Members. As a result, OCC proposes
to revise Article VIII, Section 4(a) of OCC's By-Laws to include a
sentence to provide that any interest earned on cash deposits held at

a Federal Reserve Bank shall accrue to the benefit of Clearing Members
(calculated daily based on each Clearing Member's pro rata share of
Clearing Fund cash deposits), provided that such Clearing Members have
provided OCC with all tax documentation as OCC may from time to time
require in order to effectuate such payment.\9\
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    \8\ OCC notes that it would retain the discretion to maintain a
small portion of Clearing Fund cash deposits in other accounts
(e.g., accounts with commercial banks) for various reasons,
including facilitating normal substitution activity by its Clearing
Members.
    \9\ Article VIII, Section 4(a) currently states that all
interested gained on cash Clearing Fund deposits belongs to OCC.
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3. Changes to the Fee Policy to Accommodate Interest Passed Through to
Clearing Members
    In order to accommodate the pass through of interest income, OCC
would also amend its Fee Policy to add definitions for ``Pass-Through
Interest Revenue'' and ``Operating Expenses'' to exclude from the
calculation of the Business Risk Buffer projected interest revenue and
expense, respectively, related to the pass-through of earned interest
from OCC to Clearing Members.\10\ OCC also proposes to add a new
example of the Business Risk Buffer calculation reflecting this change
and make clarifying changes throughout the Policy to incorporate the
use of the new defined terms. In addition, OCC proposes to amend the
Fee Policy to remove references to ``Proposed Rule 17Ad-22(e)(15)'' to
reflect the adoption of the Commission's Covered Clearing Agency
Standards.
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    \10\ While interest income earned by OCC from its Federal
Reserve bank account would be passed on to its Clearing Members, OCC
anticipates that it would charge a cash management fee to cover
associated costs (i.e., administrative and similar costs). OCC would
file a separate proposed rule change with the Commission, subject to
receiving all necessary regulatory approvals for the proposed
changes described herein, prior to implementing any cash management
fee.
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4. Conforming Changes
    In conjunction with the aforementioned changes, OCC is also
proposing to make four related conforming changes. First, OCC proposes
to revise Interpretation and Policy .01 of Rule 1001 to reflect that
the new minimum Clearing Fund size is $3 billion (instead of $1
billion) plus 110% of the size of OCC's committed liquidity facilities,
which conforms to the proposed new minimum cash requirement for the
Clearing Fund. Second, OCC proposes to amend the definition of
``Approved Custodian'' in Article I, Section 1 of the By-Laws to
clarify that the Federal Reserve Bank may also be an Approved
Custodian, to the extent it is available to OCC. Third, OCC is
proposing to delete existing Article VIII, Section 4(b), regarding the
establishment of a segregated funds account for cash contributions to
the Clearing Fund. The segregated funds account allows a Clearing
Member to contribute cash to a bank or trust company account maintained
in the name of OCC, subject to OCC's exclusive control, but the account
also includes the name of the Clearing Member and any interest accrues
to the Clearing Member rather than OCC. OCC proposes to eliminate the
account type because Clearing Members have not expressed interest in
using such an account, no such accounts are in use today, and moving
forward, substantially all cash Clearing Fund contributions will held
in OCC's account at the Federal Reserve Bank. Fourth, OCC proposes to
introduce new language to Article VIII, Section 4(a) to clarify that
cash contributions to the Clearing Fund that are deposited at approved
custodians may be commingled with the Clearing Fund contributions of
different Clearing Members.
Expected Effect on and Management of Risk
    The proposal is expected to improve OCC's liquidity risk management
by establishing the Cash Clearing Fund Requirement and by permitting
OCC to temporarily increase that requirement. The Cash Clearing Fund
Requirement would increase the amount of highly liquid resources
available to OCC to account for extreme scenarios that may result in
liquidity demands exceeding OCC's current Cover 1 liquidity resources,
as calculated under the current historically-based methodology. The
Cash Clearing Fund Requirement also would provide a more consistent
level of cash resources in OCC's available prefunded financial
resources, thereby further strengthening OCC's liquidity risk
management.
    The proposed ability to allow OCC to temporarily increase its
minimum Clearing Fund cash up to an amount that includes the size of
the Clearing Fund as determined in accordance with Rule 1001 is
expected to enhance OCC's liquidity risk management by providing a
process to effectively replenish the liquid resources that OCC may
employ during a stress event and would provide OCC with an additional
means of addressing liquidity shortfalls that otherwise would not be
covered by OCC's liquid resources and would provide a form of
replenishment of OCC's liquid resources. OCC recognizes that exercising
its authority to increase the minimum amount of cash in the Clearing
Fund could potentially impose a liquidity constraint on its clearing
members, and for this reason, OCC has limited its authority to increase
the minimum amount of cash in the Clearing Fund to circumstances in
which such increase would protect OCC, clearing members or the general
public and required that any such increase be based upon then-existing
facts and circumstances, be in furtherance of the integrity of OCC and
the stability of the financial system, and take into consideration the
legitimate interests of clearing members and market participants.
    OCC expects that its proposal to pass through interest earned on
Clearing Fund cash deposits at a Federal Reserve Bank ultimately may
potentially benefit clearing members' by providing them with a
comparatively higher rate of return on their deposited cash (as
compared to a comparable account with a commercial bank). This
potential increased rate of return may ultimately strengthen the
financial position of certain of OCC's clearing members.
Consistency With the Clearing Supervision Act
    The stated purpose of the Clearing Supervision Act is to mitigate
systemic risk in the financial system and promote financial stability
by, among other things, promoting uniform risk management standards for
systemically important financial market utilities and strengthening the
liquidity of systemically important financial market utilities.\11\
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    \11\ 12 U.S.C. 5461(b).
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    Section 805(a)(2) of the Clearing Supervision Act \12\ also
authorizes the Commission to prescribe risk management standards for
the payment, clearing and settlement activities of designated clearing
entities, like OCC, for which the Commission is the supervisory agency.
Section 805(b) of the Clearing Supervision Act \13\ states that the
objectives and principles for risk management standards prescribed
under Section 805(a) shall be to:
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    \12\ 12 U.S.C. 5464(a)(2).
    \13\ 12 U.S.C. 5464(b).
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     Promote robust risk management;
     promote safety and soundness;
     reduce systemic risks; and
     support the stability of the broader financial system.
    The Commission has adopted risk management standards under Section
805(a)(2) of the Clearing Supervision Act and the Act in furtherance of
these objectives and principles, including those standards adopted
pursuant to the Commission rules cited below.\14\ For the

reasons set forth below, OCC believes that the proposed change is
consistent with the risk management standards promulgated under Section
805(a) of the Clearing Supervision Act.\15\
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    \14\ 17 CFR 240.17Ad-22. See Securities Exchange Act Release
Nos. 68080 (October 22, 2012), 77 FR 66220 (November 2, 2012) (S7-
08-11) (``Clearing Agency Standards''); 78961 (September 28, 2016),
81 FR 70786 (October 13, 2016) (S7-03-14) (``Standards for Covered
Clearing Agencies''). The Standards for Covered Clearing Agencies
became effective on December 12, 2016. OCC is a ``covered clearing
agency'' as defined in Rule 17Ad-22(a)(5) and therefore is subject
to section (e) of Rule 17Ad-22.
    \15\ 12 U.S.C. 5464(b)(1) and (4).
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    Rule 17Ad-22(e)(7) \16\ requires that a covered clearing agency
(``CCA'') establish, implement, maintain and enforce written policies
and procedures reasonably designed to effectively measure, monitor and
manage liquidity risk that arises in or is borne by the CCA. Rule 17Ad-
22(e)(7)(i) \17\ requires CCAs to establish, implement, maintain, and
enforce written policies and procedures reasonably designed to
effectively measure, monitor, and manage the liquidity risk that arises
in or is borne by OCC by maintaining sufficient liquid resources at the
minimum in all relevant currencies to effect same-day settlement, and
where appropriate, intraday and multiday settlement of payment
obligations with a high degree of confidence under a wide range of
stress scenarios, that includes but is not limited to, the default of
the participant family that would generate the largest aggregate
payment obligation for OCC in extreme but plausible market conditions.
As explained above, OCC has performed an analysis of its stress
liquidity demands using proposed sizing stress tests for the Clearing
Fund and has observed that peak stressed liquidity demands of the
largest 1 or 2 members, which normally occur in conjunction with
certain monthly expirations, can exceed the size OCC's committed
liquidity facilities (which currently total $3 billion). OCC believes
that the proposed minimum $3 billion Cash Clearing Fund Requirement
will adjust OCC's available liquidity resources to account for extreme
scenarios that may result in liquidity demands exceeding OCC's Cover 1
liquidity resources. In this regard, OCC believes the proposed Cash
Clearing Fund Requirement is designed to satisfy the requirements of
Rule 17Ad-22(e)(7)(i).\18\
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    \16\ 17 CFR 240.17Ad-22(e)(7).
    \17\ 17 CFR 240.17Ad-22(e)(7)(i).
    \18\ 17 CFR 240.17Ad-22(e)(7)(i).
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    Further, Rule 17Ad-22(e)(7)(viii) \19\ requires that a CCA address
foreseeable liquidity shortfalls that would not be covered by its
liquid resources and Rule 17Ad-22(e)(7)(ix) \20\ requires that a CCA
describe its process to replenish any liquid resources that it may
employ during a stress event. OCC believes that the proposed authority
to temporarily increase the minimum cash requirement from $3 billion up
to an amount that includes the size of the Clearing Fund (as determined
in accordance with Rule 1001 for the month in question) would provide
OCC with an additional means of addressing liquidity shortfalls that
otherwise would not be covered by OCC's liquid resources. Further,
because the Clearing Fund is a resource that is replenished in
accordance with Section 6 of Article VIII of OCC's By-Laws, to the
extent that Clearing Members are required to replenish their required
contributions--in whole or in part--with cash following a proportionate
charge during, the proposed change would provide a form of
replenishment of OCC's liquid resources. In this regard, OCC believes
the proposed authority to require up to an all cash Clearing Fund
requirement is designed to satisfy the requirements of Rules 17Ad-
22(e)(7)(viii) and (ix).\21\
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    \19\ 17 CFR 240.17Ad-22(e)(7)(viii).
    \20\ 17 CFR 240.17Ad-22(e)(7)(ix).
    \21\ 17 CFR 240.17Ad-22(e)(7)(viii) and (ix).
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III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-OCC-2017-808 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2017-808. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the advance notice that are filed with the
Commission, and all written communications relating to the advance
notice between the Commission and any person, other than those that may
be withheld from the public in accordance with the provisions of 5
U.S.C. 552, will be available for website viewing and printing in the
Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of OCC and on OCC's website at
https://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_17_808.pdf.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-OCC-2017-808 and

should be submitted on or before December 29, 2017.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-26913 Filed 12-13-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 248 (Monday, December 28, 2020)]
[Notices]
[Pages 84443-84446]
[FR Doc No: 2020-28512]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90732; File Nos. SR-NYSE-2020-73, SR-NYSEAMER-2020-66,
SR-NYSENAT-2020-28, SR-NYSEArca-2020-82, SR-NYSECHX-2020-26]

Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE
American LLC; NYSE National, Inc.; NYSE Arca, Inc.; NYSE Chicago, Inc.;
Notice of Filings of Amendment No. 1 and Order Granting Approval of
Proposed Rule Changes, Each as Modified by Amendment No. 1, Amending
the Exchanges' Co-Location Services To Establish Procedures for the
Allocation of Cabinets to Co-Located Users if Cabinet Inventory Falls
Below Certain Thresholds

December 18, 2020.

I. Introduction

    On September 2, 2020, New York Stock Exchange LLC, NYSE American,
LLC, NYSE National, Inc., NYSE Arca, Inc., and NYSE Chicago, Inc. (the
``Exchanges'') each filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to establish procedures for the allocation of
cabinets to co-located Users if the Exchange cannot satisfy all User
demand for cabinets.\3\ Each proposed rule change was published for
comment in the Federal Register on September 21, 2020 \4\ or September
22, 2020.\5\ On November 3, 2020, the Commission extended the time
period within which to approve, disapprove, or institute proceedings to
determine whether to approve or disapprove the proposed rule
changes.\6\ The Commission received no comments on the proposed rule
changes. On December 16, 2020, each Exchange filed Amendment No. 1 to
its proposed rule change.\7\ Amendment No. 1 replaces and supersedes
each of the original filings in their entirety. This order provides
notice of the filings of Amendment No. 1 to each of the proposed rule
changes, and grants approval of the proposed rule changes, each as
modified by Amendment No. 1, on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See infra note 8 for the definition of ``User.''
    \4\ See Securities Exchange Act Release Nos. 89879 (September
15, 2020), 85 FR 59361 (SR-NYSE-2020-73); 89880 (September 15,
2020), 85 FR 59365 (SR-NYSEAMER-2020-66) (each, a ``Notice'').
    \5\ See Securities Exchange Act Release Nos. 89884 (September
16, 2020), 85 FR 59576 (SR-NYSENAT-2020-28); 89883 (September 16,
2020), 85 FR 59568 (SR-NYSEArca-2020-82); 89886 (September 16, 2020)
85 FR 59582 (SR-NYSECHX-2020-26) (each, a ``Notice''). For ease of
reference, page citations to the Notices refer to the Notice for SR-
NYSE-2020-73, supra note 4, as published in the Federal Register.
    \6\ See Securities Exchange Act Release Nos. 90330 (November 3,
2020), 85 FR 71364 (November 9, 2020) (SR-NYSE-2020-73) and 90327
(November 3, 2020), 5 FR 71373 (November 9, 2020) (SR-NYSEAMER-2020-
66), in which the Commission designated December 20, 2020 as the
date by which it should approve, disapprove, or institute
proceedings to determine whether to disapprove these proposed rule
changes; and Securities Exchange Act Release Nos. 90329 (November 3,
2020) 85 FR 71381 (November 9, 2020) (SR-NYSENAT-2020-28); 90326
(November 3, 2020) 85 FR 71365 (November 9, 2020) (SR-NYSEArca-2020-
82); 90328 (November 3, 2020) 85 FR 71373 (November 9, 2020) 85 FR
71384 (November 9, 2020) (SR-NYSECHX-2020-26), in which the
Commission designated December 21, 2020 as the date by which it
should approve, disapprove, or institute proceedings to determine
whether to disapprove these proposed rule changes.
    \7\ Amendment No. 1 revises the proposals by: (i) Adding
representations that the Exchanges are not presently in a situation
where they cannot satisfy all User demand for cabinets; do not
anticipate being so in the foreseeable future; and are currently
working to expand the number of cabinets available in co-location;
(ii) stating that the Cabinet Threshold level of 40 cabinets (chosen
as a threshold not easily triggered) is offered as a reasonable
buffer during which the Purchasing Limits would apply before the
Cabinet Waitlist would become effective; (iii) clarifying that the
determination of the whether the Cabinet Threshold is reached is not
dependent on whether cabinets are configured to be subdivided into
partial cabinets; (iv) specifying that if the Purchasing Limit of a
maximum of four new dedicated cabinets applies, the maximum may be
comprised of a mix of dedicated and partial cabinets, with two
partial cabinets counting as one dedicated cabinet; (v) clarifying
that if a User requests, in writing, a number of cabinets that, if
provided, would cause the available cabinet inventory to be below 40
cabinets, the Purchasing Limits would only apply to the portion of
the User's order below the Cabinet Threshold; and (vi) deleting the
initially proposed 8 kW power limit for new dedicated cabinets when
the cabinet Purchasing Limits are in effect. Amendment No 1 for each
filing is available on the Commission's website at: https://www.sec.gov/comments/sr-nyse-2020-73/srnyse202073-8154095-226755.pdf; https://www.sec.gov/comments/sr-nyseamer-2020-66/srnyseamer202066-8154097-226756.pdf; https://www.sec.gov/comments/sr-nysenat-2020-28/srnysenat202028-8154096-226737.pdf; https://www.sec.gov/comments/sr-nysearca-2020-82/srnysearca202082-8154094-226736.pdf; https://www.sec.gov/comments/sr-nysechx-2020-26/srnysechx202026-8154093-226754.pdf.
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II. Description of the Proposed Rule Changes, as Modified by Amendment
No. 1.

    As more fully set forth in the Notices and their co-location fee
schedules, the Exchanges offer co-location customers (``Users'') \8\
options for purchasing cabinet space to house their servers and other
equipment in co-location.\9\ Cabinets are offered as dedicated cabinets
or partial cabinets, and currently made available on a first-come,
first-serve basis.\10\ Users are assessed an initial fee depending on
type of cabinet purchased, and a monthly fee based on the power, in
kilowatts (kW), they purchase with the cabinet.\11\ Users can also
purchase

``PNU cabinets,'' which are cabinets in which power is not utilized.
PNU cabinets are reserved cabinet space that may be converted to a
dedicated cabinet when the User requests it.\12\
---------------------------------------------------------------------------

    \8\ For purposes of the Exchanges' co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See Securities
Exchange Act Release No. 76008 (September 29, 2015), 80 FR 60190
(October 5, 2015) (SR-NYSE-2015-40). A User that incurs co-location
fees for a particular co-location service pursuant to any one
Exchange's co-location price list is not subject to co-location fees
for the same co-location service charged by an affiliated SRO. See
Notice, supra note 4 at n. 5.
    \9\ See Notice, supra note 4 at 59362. See also, e.g., NYSE
Price List, available at: https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf.
    \10\ See Notice, supra note 5 at 59362.
    \11\ Partial cabinets are available in 8-rack units of space
with power with options to purchase 1 kW (for $1,500 per month) or
2kW (for $2,700 per month) of power. A dedicated cabinet includes
enough space for approximately four separate eight-rack units and
includes the following options to purchase power: 4-8 kW (for $1,200
per month), 9-20 kW (for $1,050 per month), 21-40 kW (for $950 per
month), and 41 or more kW (for $900 per month). See Securities
Exchange Act Release Nos. 70978 (December 4, 2013), 78 FR 77739,
77740 (December 24, 2013) (SR-NYSE-2013-81); 71131 (December 18,
2013), 78 FR 77750 (December 24, 2013) (SR-NYSEMKT-2013-103); 71130
(December 18, 2013), 78 FR 77765 (December 24, 2013) (SR-NYSEArca-
2013-143); 83351 (May 31, 2018), 83 FR 26314 (June 6, 2018) (SR-
NYSENAT-2018-07);87408 (October 28, 2019), 84 FR 58778 (November 1,
2019) (SR-NYSECHX-2019-12) (adding partial cabinets and related
pricing). See Securities Exchange Act Release Nos. 62732 (August 16,
2010), 75 FR 51512, 51513 (August 20, 2010) (SR-NYSE-2010-56); 62960
(September 21, 2010), 75 FR 59310 (September 27, 2010) (SR-NYSE-
2010-56); 65237 (August 31, 2011), 76 FR 55432 (September 7, 2011)
(SR-NYSE-2011-46); 62731 (August 16, 2010), 75 FR 51515 (August 20,
2010) (SR-NYSEAmex-2010-80); 62961 (September 21, 2010), 75 FR 59299
(September 27, 2010) (SR-NYSEAmex-2010-80); 65240 (August 31, 2011),
76 FR 55434 (September 7, 2011) (SR-NYSEAmex-2011-65); 63275
(November 8, 2010), 75 FR 70048 (November 16, 2010) (SR-NYSEArca-
2010-100); 65236 (August 31, 2011), 76 FR 55437 (September 7, 2011)
(SR-NYSEArca-2011-65); 83351 (May 31, 2018), 83 FR 26314 (June 6,
2018) (SR-NYSENAT-2018-07);87408 (October 28, 2019), 84 FR 58778
(November 1, 2019) (SR-NYSECHX-2019-12) (adding dedicated cabinets
and related pricing).
    \12\ PNU cabinets are available at a monthly charge of $360 per
kW allocated to the PNU cabinet. See Securities Exchange Act Release
Nos. 70913 (November 21, 2013), 78 FR 70987, 70988 (November 27,
2013) (SR-NYSE-2013-74); 70914 (November 21, 2013), 78 FR 71000
(November 27, 2013) (SR-NYSEMKT-2013-93); 70916 (November 21, 2013),
78 FR 70989 (November 27, 2013) (SR-NYSEArca-2013-124); 83351 (May
31, 2018), 83 FR 26314 (June 6, 2018) (SR-NYSENAT-2018-07); 87408
(October 28, 2019), 84 FR 58778 (November 1, 2019) (SR-NYSECHX-2019-
12).
---------------------------------------------------------------------------

    The Exchanges propose to amend their co-location rules to add new
General Notes 7 and 8 to each fee schedule setting forth procedures for
allocating cabinet space if, in the future, a situation arises where
the Exchanges cannot fully satisfy User demand for the purchase of new
cabinets.\13\ The Exchanges represent that they are not presently in
such a situation, do not anticipate being so in the foreseeable future,
and are currently working to expand the number of cabinets available in
co-location, but believe that it would be prudent to have cabinet
allocation procedures in place to address demand for the purchase of
new cabinets if needed.\14\
---------------------------------------------------------------------------

    \13\ See Notice, supra note 4 at 59362.
    \14\ See Amendment No. 1.
---------------------------------------------------------------------------

    As further described below, if cabinet inventory falls to 40
cabinets or fewer (the ``Cabinet Threshold''), certain limits
(``Purchasing Limits'') would apply to the purchase of new cabinets and
remain in effect until unallocated cabinet inventory is more than 40
cabinets. Further, if the available cabinet inventory is zero, the
Exchanges would create and maintain a waitlist (``Cabinet Waitlist'')
until unallocated cabinet inventory is more than 10 cabinets.
    If unallocated cabinet inventory is at or below 40 cabinets,
whether or not such cabinets are configured to be subdivided into
partial cabinets, the following Purchasing Limits would apply: \15\ (i)
A User with PNU cabinets would be required to either convert its PNU
cabinets into dedicated cabinets or relinquish its PNU cabinets before
being permitted to purchase new cabinets; \16\ (ii) a User's purchase
of new cabinets (dedicated and partial) would be limited to a maximum
of four dedicated cabinets, which maximum may be comprised of a mix of
dedicated and partial cabinets, with two partial cabinets counting as
one dedicated cabinet; \17\ (iii) If a User requests, in writing, a
number of cabinets that, if provided, would cause the available cabinet
inventory to be below 40 cabinets, the Purchasing Limits would only
apply to the portion of the User's order below the Cabinet Threshold;
\18\ (iv) a User purchasing new cabinets would be required to wait 30
days from the date of its signed order form before purchasing new
cabinets again; \19\ and (v) new PNU cabinets would not be offered.\20\
These Purchasing Limits would be discontinued when the unallocated
cabinet inventory is more than 40 cabinets.\21\
---------------------------------------------------------------------------

    \15\ See Notice, supra note 4 at 59362 and Amendment No. 1.
    \16\ See Notice, supra note 4, at 59363.
    \17\ See id. and Amendment No. 1 (specifying that the maximum
may be comprised of a mix of dedicated and partial cabinets, with
two partial cabinets counting as one dedicated cabinet.) In the
original Notices, the proposed that when the Purchasing Limits were
in effect, Users would be limited to purchasing 8 kW of power when
purchasing a new dedicated cabinet. In Amendment No. 1, the
Exchanges deleted this proposed limitation. Noting that the they
makes dedicated cabinets available with standard power allocation of
either 4 kW or 8 kW, and that partial cabinets are available in
increments of eight-rack units of space, and each eight-rack unit
may be allocated up to 2 kW, the Exchanges also noted that currently
a User may request power upgrades to dedicated cabinets beyond 8 kW.
See Securities Exchange Act Release Nos. 70978 (December 18, 2013),
78 FR 77739 (December 24, 2013) (SR-NYSE-2013-81); 71131 (December
18, 2013), 78 FR 77750 (December 24, 2013) (SR-NYSEMKT-2013-103);
71130 (December 18, 2013), 78 FR 77765 (December 24, 2014) (SR-
NYSEArca-2013-143); 83351 (May 31, 2018), 83 FR 26314 (June 6, 2018)
(SR-NYSENAT-2018-07); and 87408 (October 28, 2019), 84 FR 58778
(November 1, 2019) (SR-NYSECHX-2019-12).
    \18\ See Amendment No. 1. For example, if the Exchange had 50
available cabinets and a User requested to purchase 20 cabinets, the
Purchasing Limits would not apply to the User's purchase of the
first 10 cabinets. Once the available inventory reached 40 cabinets,
the Purchasing Limits would be activated, limiting the User's
purchase of additional cabinets to 4 cabinets. In all, the User
would be permitted to purchase a total of 14 cabinets out of its
original order of 20 cabinets. Id.
    \19\ See Notice, supra note 4, at 59363.
    \20\ Id.
    \21\ Id.
---------------------------------------------------------------------------

    If the available cabinet inventory is zero, or a User submits a
written request for a number of cabinets that, if provided, would cause
the available cabinet inventory to be zero, the Exchanges would create
and maintain a Cabinet Waitlist, as follows: \22\ (i) A User with PNU
cabinets would be placed on the waitlist for the portion of its new
cabinet request that exceeds its existing PNU cabinets (subject to the
Purchasing Limits), and the User would not be placed on the waitlist if
it could meet its request by converting its PNU cabinets to dedicated
cabinets; \23\ (ii) a User would be placed on the waitlist based on the
date its signed order is received and may only have one order for new
cabinets that is subject to the Purchasing Limits on the waitlist at a
time; (iii) as cabinets become available, the Exchanges would offer
them to the User at the top of the waitlist.\24\
---------------------------------------------------------------------------

    \22\ Id.
    \23\ Id.
    \24\ Id.
---------------------------------------------------------------------------

    In addition, a User would be removed from the Cabinet Waitlist when
its order is completed and would remain at the top of the Cabinet
Waitlist if its order is not completed.\25\ A User would be removed
from the Cabinet Waitlist (a) at the User's request or (b) if the User
turns down an offer of a cabinet of the same size it requested in its
order.\26\ The User may turn down an Exchange's offer of a cabinet of a
different size than the User requested in its order and remain at the
top of the waitlist until its order is completed.\27\ A User that is
removed from the Cabinet Waitlist but subsequently submits a new
written order for cabinets would be added to the bottom of the Cabinet
Waitlist.\28\ The Exchanges would cease use of the Cabinet Waitlist
when unallocated cabinet inventory is more than 10 cabinets.\29\
---------------------------------------------------------------------------

    \25\ Id.
    \26\ Id.
    \27\ Id.
    \28\ Id.
    \29\ Id.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
changes, each as modified by Amendment No. 1, are consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\30\ In particular, the
Commission finds that the proposed rule changes, each is modified by
Amendment No. 1, are consistent with Section 6(b)(5) of the Act,\31\
which requires that the rules of a national securities exchange be
designed, among

other things, to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, 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, and not be designed to permit unfair discrimination
between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------

    \30\ In approving this proposed rule change, as modified by
Amendment No. 1, the Commission notes that it has considered the
proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
    \31\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchanges propose rational, objective procedures for allocating
cabinet space in a situation in which all User demand cannot fully be
satisfied, and particularly for responding to User demand for new
cabinets when inventory falls and remains below specified thresholds.
As noted above, the Exchanges represent that they are not presently in
such a situation, do not anticipate being so in the foreseeable future,
and are currently working to expand the number of cabinets available in
co-location.
    The proposed cabinet allocation procedures, establishing a
Purchasing Limit on order size for new cabinet space when the Cabinet
Threshold is reached and a Cabinet Waitlist when inventory falls to
zero, are measures designed to respond to increasing demand for
cabinets and facilitate an equitable distribution of new cabinet
purchases if cabinet inventory becomes limited. The Commission notes
the Exchanges' representation that the proposed Cabinet Threshold of 40
cabinets would not be easily triggered, yet would establish a
reasonable buffer before the Cabinet Waitlist is effective. Because the
Purchasing Limits provide a method for making limited cabinet space
available to Users requesting new cabinets that is transparent, as well
as reasonably designed to accommodate Users' needs while mitigating the
potential for some Users to seek to obtain additional cabinet space
resulting in limitations on other Users, the Commission believes the
Purchasing Limits would promote just and equitable principles of trade
and protect investors and the public interest and are not designed to
permit unfair discrimination between customers, issuers, brokers or
dealers.
    Further, the Commission believes that the establishment of the
Cabinet Waitlist based on the date of receipt of signed orders,
limiting the size and number of orders a User may have on the waitlist
at any one time, and removing a User from the waitlist if it turns down
a cabinet that is the size that it requested, should prevent Users from
utilizing the waitlist as a method to obtain a greater portion of the
cabinets available, thereby facilitating a more equitable distribution
of cabinets. Similarly, a 30-day delay before a User subject to the
Purchasing Limits could purchase cabinets again, is reasonably designed
to prevent a User from obtaining a greater portion of the cabinets
available.
    For the foregoing reasons, Commission finds that the proposals,
each as modified by Amendment No. 1, are consistent with the Act.

IV. Solicitation of Comments on Amendment No. 1

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment No. 1
to 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 Numbers SR-NYSE-2020-73, SR-NYSEAMER-2020-66, SR-NYSENAT-2020-28,
SR-NYSEArca-2020-82, SR-NYSECHX-2020-26 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 Numbers SR-NYSE-2020-73, SR-
NYSEAMER-2020-66, SR-NYSENAT-2020-28, SR-NYSEArca-2020-82, SR-NYSECHX-
2020-26. 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 Numbers SR-NYSE-2020-73, SR-NYSEAMER-
2020-66, SR-NYSENAT-2020-28, SR-NYSEArca-2020-82, SR-NYSECHX-2020-26
and should be submitted on or before January 19, 2021.

V. Accelerated Approval of Proposed Rule Changes, Each as Modified by
Amendment No. 1

    The Commission finds good cause to approve the proposed rule
changes, each as modified by Amendment No. 1, prior to the 30th day
after the date of publication of notice of Amendment No. 1 in the
Federal Register. As noted above, Amendment No. 1. revises the
proposals by: (i) Adding the Exchanges' representations that they are
not presently in a situation where they cannot satisfy all User demand
for cabinets, do not anticipate being so in the foreseeable future, and
are currently working to expand the number of cabinets available in co-
location; (ii) specifying that the Cabinet Threshold level of 40
cabinets (chosen as a threshold not easily triggered) is offered as a
reasonable buffer during which the Purchasing Limits would apply before
the Cabinet Waitlist would become effective; (iii) clarifying that the
determination of the whether the Cabinet Threshold is reached is not
dependent on whether cabinets are configured to be subdivided into
partial cabinets, (iv) specifying that if the Purchasing Limit of a
maximum of four new dedicated cabinets applies, the maximum may be
comprised of a mix of dedicated and partial cabinets, with two partial
cabinets counting as one dedicated cabinet; (v) clarifying that if a
User requests, in writing, a number of cabinets that, if provided,
would cause the available cabinet inventory to be below 40 cabinets,
the Purchasing Limits would only apply to the portion of the User's
order below the Cabinet Threshold; and (vi) deleting the initially
proposed 8 kW power limit for new dedicated cabinets when the cabinet
Purchasing Limits are in effect. The Commission believes that Amendment
No. 1 provides additional clarity and detail to the rule text and
additional analysis and examples of aspects of the proposal, thereby
facilitating the Commission's ability to make the

findings set forth above to approve the proposal.
    Accordingly, pursuant to Section 19(b)(2) of the Exchange Act,\32\
the Commission finds good cause to approve the proposed rule changes,
each as modified by Amendment No. 1, on an accelerated basis.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\33\ that the proposed rule changes (SR-NYSE-2020-73, SR-NYSEAMER-
2020-66, SR-NYSENAT-2020-28, SR-NYSEArca-2020-82, SR-NYSECHX-2020-26),
each as modified by Amendment No. 1 be, and hereby are, approved on an
accelerated basis.
---------------------------------------------------------------------------

    \33\ See id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\34\
---------------------------------------------------------------------------

    \34\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-28512 Filed 12-23-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 10 (Friday, January 15, 2021)]
[Notices]
[Pages 4046-4047]
[FR Doc No: 2021-00858]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2530-057]

Brookfield White Pine Hydro LLC; Notice of Application Accepted
for Filing, Soliciting Motions To Intervene and Protests, Ready for
Environmental Analysis, and Soliciting Comments, Recommendations,
Preliminary Terms and Conditions, and Preliminary Fishway Prescriptions

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: New Major License.
    b. Project No.: 2530-057.
    c. Date filed: November 20, 2020.
    d. Applicant: Brookfield White Pine Hydro LLC (White Pine Hydro).
    e. Name of Project: Hiram Hydroelectric Project.
    f. Location: The existing project is located on the Saco River in
the towns of Hiram, Baldwin, Brownfield, and Denmark within Oxford and
Cumberland Counties, Maine. The project does not affect federal lands.
    g. Filed Pursuant to: Federal Power Act 16 U.S.C. 791 (a)--825(r).
    h. Applicant Contact: Luke Anderson, Licensing Manager, Brookfield
White Pine Hydro LLC, 150 Main Street, Lewiston, ME 04240; Telephone
(207) 755-5600.
    i. FERC Contact: Dianne Rodman,<PHONE_NUMBER> or
<EMAIL_ADDRESS>    j. Deadline for filing motions to intervene and protests, comments,
recommendations, preliminary terms and conditions, and preliminary
prescriptions: 60 days from the issuance date of this notice; reply
comments are due 105 days from the issuance date of this notice.
    The Commission strongly encourages electronic filing. Please file
using the Commission's eFiling system at https://ferconline.ferc.gov/FERCOnline.aspx. Commenters can submit brief comments up to 6,000
characters, without prior registration, using the eComment system at
https://ferconline.ferc.gov/QuickComment. You must include your name
and contact information at the end of your comments. For assistance,
please contact FERC Online Support at<EMAIL_ADDRESS>(866)
208-3676 (toll free), or<PHONE_NUMBER> (TTY). In lieu of electronic
filing, you may submit a paper copy. Submissions sent via the U.S.
Postal Service must be addressed to: Kimberly D. Bose,

Secretary, Federal Energy Regulatory Commission, 888 First Street NE,
Room 1A, Washington, DC 20426. Submissions sent via any other carrier
must be addressed to: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852.
The first page of any filing should include docket number P-2530-057.
    Intervenors--those on the Commission's service list for this
proceeding--are reminded that if they file comments with the
Commission, they must also serve a copy of their filing on each person
whose name appears on the official service list. Note that the list is
periodically updated. The official service list can be obtained on the
Commission's website (https://www.ferc.gov)--click on Documents and
Filing and click on eService--or call the Office of the Secretary,
Dockets Branch at<PHONE_NUMBER>. In addition, if any party files
comments or documents with the Commission relating to the merits of an
issue that may affect the responsibilities of a particular resource
agency, they must also serve a copy of the document on the resource
agency.
    k. This application has been accepted for filing and is now ready
for environmental analysis.
    The Council on Environmental Quality (CEQ) issued a final rule on
July 15, 2020, revising the regulations under 40 CFR parts 1500--1518
that federal agencies use to implement NEPA (see Update to the
Regulations Implementing the Procedural Provisions of the National
Environmental Policy Act, 85 FR 43,304). The Final Rule became
effective on and applies to any NEPA process begun after September 14,
2020. An agency may also apply the regulations to ongoing activities
and environmental documents begun before September 14, 2020, which
includes the proposed Hiram Project. Commission staff intends to
conduct its NEPA review in accordance with CEQ's new regulations.
    l. The existing Hiram Project consists of a 255-acre, 7.5-mile-long
impoundment at normal full pond elevation 349.0 feet; a 448-foot-long
dam located at the top of Great Falls fitted with an inflatable dam
across the spillway crest; an intake that is integral to the dam; a
320-foot-long, 15.5-foot-diameter penstock that bifurcates to one 170-
foot-long by 10-foot-wide penstock (to Unit 1), and one 80-foot-long by
15.5-foot-diameter penstock (to Unit 2); a powerhouse containing two
turbine-generator units, Unit 1 rated at 2.4 megawatts (MW) and Unit 2
at 8.1 MW, for a total installed capacity of 10.5 MW; and appurtenant
facilities. The project's transmission facilities include: (1)
Generator leads; (2) a substation located adjacent to, and north of,
the powerhouse; and (3) a transmission circuit connecting the
substation to a non-project switching station. The project generates an
annual average of 45,142 megawatt-hours.
    White Pine Hydro proposes to continue to: Operate the project in a
run-of-river mode from October 1 through November 15, with head pond
drawdowns limited to 1 foot or less from the full pond elevation, or
from the spillway crest when the inflatable dam is down. From November
16 through September 30, White Pine Hydro proposes to continue to cycle
daily operations whereby it would turn on and off its generating units
when inflow is sufficient to meet load demands, resulting in drawdown
of the head pond by up to 2 feet from the full pond elevation during
normal project operation, or from the spillway crest when the
inflatable dam is down. During this period, White Pine Hydro would
continue to provide a minimum flow of 300 cubic feet per second (cfs),
of inflow, whichever is less below the powerhouse.
    White Pine Hydro proposes to remove from the current project
boundary 152 acres of land and 25 acres of water.
    m. A copy of the application can be viewed on the Commission's
website at https://www.ferc.gov using the ``eLibrary'' link. Enter the
docket number excluding the last three digits in the docket number
field to access the document. For assistance, contact FERC Online
Support.
    Register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    n. Anyone may submit comments, a protest, or a motion to intervene
in accordance with the requirements of Rules of Practice and Procedure,
18 CFR 385.210, .211, and .214. In determining the appropriate action
to take, the Commission will consider all protests or other comments
filed, but only those who file a motion to intervene in accordance with
the Commission's Rules may become a party to the proceeding. Any
comments, protests, or motions to intervene must be received on or
before the specified comment date for the particular application.
    All filings must (1) bear in all capital letters the title PROTEST,
MOTION TO INTERVENE, COMMENTS, REPLY COMMENTS, RECOMMENDATIONS,
PRELIMINARY TERMS AND CONDITIONS, or PRELIMINARY FISHWAY PRESCRIPTIONS;
(2) set forth in the heading the name of the applicant and the project
number of the application to which the filing responds; (3) furnish the
name, address, and telephone number of the person protesting or
intervening; and (4) otherwise comply with the requirements of 18 CFR
385.2001 through 385.2005. All comments, recommendations, terms and
conditions or prescriptions must set forth their evidentiary basis and
otherwise comply with the requirements of 18 CFR 4.34(b). Agencies may
obtain copies of the application directly from the applicant. A copy of
any protest or motion to intervene must be served upon each
representative of the applicant specified in the particular
application. A copy of all other filings in reference to this
application must be accompanied by proof of service on all persons
listed in the service list prepared by the Commission in this
proceeding, in accordance with 18 CFR 4.34(b) and 385.2010.
    o. Procedural Schedule:
    The application will be processed according to the following
schedule. Revisions to the schedule may be made as appropriate.

------------------------------------------------------------------------
              Milestone                           Target date
------------------------------------------------------------------------
Deadline for filing comments,          March 2021
 recommendations, preliminary terms
 and conditions, and preliminary
 fishway prescriptions.
Deadline for Filing Reply Comments...  April 2021
------------------------------------------------------------------------

    p. Final amendments to the application must be filed with the
Commission no later than 30 days from the issuance date of this notice.
    q. A license applicant must file no later than 60 days following
the date of issuance of the notice of acceptance and ready for
environmental analysis provided for in Sec.  5.22: (1) A copy of the
water quality certification; (2) a copy of the request for
certification, including proof of the date on which the certifying
agency received the request; or (3) evidence of waiver of water quality
certification. Please note that the certification request must be sent
to the certifying authority and to the Commission concurrently.

    Dated: January 11, 2021.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2021-00858 Filed 1-14-21; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 20 (Tuesday, January 31, 2012)]
[Proposed Rules]
[Pages 4707-4708]
[FR Doc No: 2012-2046]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2011-0847; Airspace Docket No. 11-ASW-11]

Proposed Amendment of Class E Airspace; Springhill, LA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend Class E airspace at Springhill,
LA. Decommissioning of the Springhill non-directional beacon (NDB) at
Springhill Airport, Springhill, LA, has made this action necessary for
the safety and management of Instrument Flight Rules (IFR) operations
at Springhill Airport. The geographic coordinates of the airport also
would be amended.

DATES: 0901 UTC. Comments must be received on or before March 16, 2012.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590-0001. You
must identify the docket number FAA-2011-0847/Airspace Docket No. 11-
ASW-11, at the beginning of your comments. You may also submit comments
through the Internet at http://www.regulations.gov. You may review the
public docket containing the proposal, any comments received, and any
final disposition in person in the Dockets Office between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The Docket Office
(telephone 1-800-647-5527), is on the ground floor of the building at
the above address.

FOR FURTHER INFORMATION CONTACT: Scott Enander, Central Service Center,
Operations Support Group, Federal Aviation Administration, Southwest
Region, 2601 Meacham Blvd. Fort Worth, TX 76137; telephone: (817) 321-
7716.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2011-0847/
Airspace Docket No. 11-ASW-11.'' The postcard will be date/time stamped
and returned to the commenter.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at http://www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see ADDRESSES section for address and phone number) between 9
a.m., and 5 p.m., Monday through Friday, except Federal holidays. An
informal docket may also be examined during normal business hours at
the office of the Central Service Center, 2601 Meacham Blvd. Fort
Worth, TX 76137.
    Persons interested in being placed on a mailing list for future
NPRMs should contact the FAA's Office of Rulemaking<PHONE_NUMBER>, to
request a copy of Advisory Circular No. 11-2A, Notice of Proposed
Rulemaking Distribution System, which describes the application
procedure.

The Proposal

    This action proposes to amend Title 14, Code of Federal Regulations
(14 CFR), Part 71 by modifying Class E airspace extending upward from
700 feet above the surface for standard instrument approach procedures
at Springhill Airport, Springhill, LA. Airspace reconfiguration is
necessary due to the decommissioning of the Springhill NDB and the
cancellation of the NDB approach. This action would also amend the
geographic coordinates of the airport to coincide with the FAA's
aeronautical database. Controlled airspace is necessary for the safety
and management of IFR operations at the airport.
    Class E airspace areas are published in Paragraph 6005 of FAA Order
7400.9V, dated August 9, 2011, and effective September 15, 2011, which
is incorporated by reference in 14 CFR 71.1. The Class E airspace
designation listed in this document would be published subsequently in
the Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore, (1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a Regulatory Evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, will not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the U.S. Code. Subtitle 1, Section 106 describes
the authority of the FAA Administrator. Subtitle VII, Aviation
Programs, describes in more detail the scope of the agency's authority.
This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would modify controlled airspace at Springhill Airport,
Springhill, LA.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

    1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of FAA Order
7400.9V, Airspace Designations and Reporting Points, dated August 9,
2011, and effective September 15, 2011, is amended as follows:

Paragraph 6005 Class E airspace areas extending upward from 700
feet or more above the surface of the earth.

* * * * *

ASW LA E5 Springhill, LA [Amended]

Springhill Airport, LA
    (Lat. 32[deg]59'00'' N., long. 93[deg]24'33'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.4-mile radius of Springhill Airport.

    Issued in Fort Worth, TX, on January 12, 2012.
Walter L. Tweedy,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2012-2046 Filed 1-30-12; 8:45 am]
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