[Federal Register Volume 81, Number 233 (Monday, December 5, 2016)]
[Notices]
[Pages 87641-87644]
[FR Doc No: 2016-29044]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79423; File No. SR-CBOE-2016-078]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change, as Modified
by Amendment No. 1 Thereto, Relating to Disaster Recovery

November 29, 2016.
    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 November 16, 2016, Chicago Board Options Exchange, Incorporated
(``CBOE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. On November 28, 2016, the Exchange filed Amendment No. 1 to
the proposal.\3\ The Commission is publishing this notice to solicit
comments on the proposed rule change, as modified by Amendment No. 1,
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange provided in new footnote 11
additional explanation about how its business continuity and
disaster recovery plans are reasonably designed to achieve two-hour
resumption of trading systems essential to conducting business on
the Exchange.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 6.18 relating to disaster
recovery. The text of the proposed rule change is available on the
Exchange's Web site (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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
Background
    The Exchange adopted Rule 6.18 in 2006 for the limited purpose of
providing alternative means of operation in the event of a physical
disaster. In particular, Rule 6.18, as originally adopted, was intended
to deal with trading floor closures, providing for the operation of a
``Disaster Recovery Facility'' (``DRF'') in the event that a disaster
or other unusual circumstance rendered the trading floor inoperable.\4\
Under original Rule 6.18, if the Exchange were forced to halt trading
due to a disaster or other physical impairment of its trading floor,
the Exchange and its members \5\ could operate remotely in a screen-
based only environment from the DRF while the trading floor was
unavailable. While operating from the DRF, open outcry trading would be
suspended.
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    \4\ See Securities Exchange Act Release No. 54171 (July 19,
2006), 71 FR 42427 (July 26, 2006) (Order Approving Proposed Rule
Change and Amendment No. 1 Thereto Regarding a Disaster Recovery
Facility) (SR-CBOE-2006-001).
    \5\ Prior to its demutualization in 2010, the Exchange was a
member-owned organization. See Securities Exchange Act Release No.
62382 (June 25, 2010), 75 FR 38164 (July 1, 2010) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to
Conforming Changes in Connection With Demutualization) (SR-CBOE-
2010-058). Individuals and organizations that may trade on CBOE are
now referred to as Trading Permit Holders (``TPHs'').
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    In 2012, Rule 6.18 was amended in connection with the Exchange's
relocation of its primary data center to the East Coast and the
consequent conversion of its former primary data center to a back-up
data center in Chicago.\6\ Specifically, Rule 6.18 was amended to
address other situations in which the primary data center could
continue to operate despite the trading floor being rendered inoperable
or in which the back-up data center might be used despite the trading
floor being operational. Specifically, as amended, Rule 6.18 provided
that in the event that the Exchange were forced to switch operations to
the back-up data center, the Exchange's trading floor could still be
used and that in the event that the trading floor were inoperable, the
Exchange could still operate using a floorless configuration or screen-
based only environment on the Exchange's primary data center.
References to the DRF and other irrelevant portions of the original
rule were eliminated or replaced with references to Exchange's primary
and back-up data centers as appropriate.
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    \6\ See Securities Exchange Act Release No. 68301 (November 27,
2012), 77 FR 71650 (December 3, 2012) (Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change To Amend CBOE
Rule 6.18 Concerning the Exchange's Disaster Recovery Facility) (SR-
CBOE-2012-111).
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    In 2015, Rule 6.18 was again amended to add greater detail to the
Exchange's disaster recovery rules and harmonize the disaster recovery
rules with newly implemented disaster recovery-related regulatory
imperatives of Regulation Systems Compliance and Integrity
(``Regulation SCI''), which superseded and replaced the SEC's voluntary
Automation Review Policy.\7\ In doing so, the Exchange made certain
changes to Rule 6.18 to provide additional details regarding the
Exchange's back-up trading systems, business continuity and disaster
recovery plans, and testing and update its disaster recovery rules to
ensure consistency with Regulation SCI.
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    \7\ See Securities Exchange Act Release No. 76203 (October 20,
2015), 80 FR 65258 (October 26, 2015) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change Relating to
Disaster Recovery) (SR-CBOE-2015-088); see also Securities Exchange
Act Release No. 73639 (November 19, 2014), 79 FR at 72252 (December
5, 2014) (Regulation Systems Compliance and Integrity) (File No. S7-
01-13); Securities Exchange Act Release No. 27445 (November 16,
1989), 54 FR 48703 (November 24, 1989) (Automated Systems of Self-
Regulatory Organizations) (File No. S7-29-89); Securities Exchange
Act Release No. 29185 (May 9, 1991), 56 FR 22490 (May 15, 1991)
(Automated Systems of Self-Regulatory Organizations) (File No. S7-
12-91).
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    The Exchange now proposes to make additional changes to its
disaster recovery rules to provide the Exchange authority to take
additional steps necessary to preserve the Exchange's ability to
conduct business in the event that the Exchange's data centers become
inoperable or otherwise unavailable for use due to a significant
systems failure, disaster or other unusual circumstances and make clear
in the Rules the intermediary steps that the Exchange may take to
disable certain systems and users' connectivity while continuing to
operate its primary data center. The Exchange believes this authority
serves the interests of all investors and the general public, because
it helps the Exchange ensure its continuous operation and ability to
maintain fair and orderly markets in the event of a

significant systems failure or other unusual circumstance.
Proposal
    The Exchange proposes to amend Rule 6.18 relating to disaster
recovery. Specifically, the Exchange proposes to make changes to Rule
6.18 to: (1) Allow the Exchange to establish additional temporary
requirements applicable to certain market participants to help ensure
the operation of fair and orderly markets during use of the Exchange's
back-up data center; (2) provide that the Exchange may determine to
temporarily operate in an exclusively floor-based environment via open
outcry in order to preserve the Exchange's ability to conduct business
in the event that the Exchange's data centers become inoperable or
otherwise unavailable for use due to a significant systems failure,
disaster, or other unusual circumstances; (3) permit the Exchange to
deactivate certain nonessential systems and systems functionalities in
response to limited systems disruptions or malfunctions, security
intrusions, systems compliance issues, or other unusual circumstances;
and (4) permit the Exchange to restrict access of a TPH or associated
person to the Hybrid Trading System \8\ and other Exchange systems if
such access poses a significant threat to the Exchange's ability to
operate systems essential to maintain a fair and orderly market.
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    \8\ Under Rule 1.1(aaa), the ``Hybrid Trading System'' refers to
(i) the Exchange's trading platform that allows Market-Makers to
submit electronic quotes in their appointed classes and (ii) any
connectivity to the foregoing trading platform that is administered
by or on behalf of the Exchange, such as a communications hub.
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    The Exchange proposes to add new Rule 6.18(b)(iv)(B) (Alternative
BCP/DR Participant Obligations), which would provide that the Exchange
may, if necessary for the maintenance of fair and orderly markets,
establish additional temporary requirements applicable to Designated
BCP/DR Participants \9\ and/or other market participants during use of
the back-up data center. Proposed Rule 6.18(b)(iv)(B) is intended as an
extension of the Exchange's authority under current Rule 6.18(b)(iv)
(Trading Permit Holder Participation), which requires TPHs to take
appropriate actions as instructed by the Exchange to accommodate the
Exchange's ability to conduct business via the back-up data center. The
Exchange believes this extended authority would afford the Exchange
with necessary flexibility to address any unexpected contingencies that
may arise if a disaster or other unusual circumstances occur, causing
the Exchange to use the back-up data center.
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    \9\ Under Rule 6.18(b)(iv)(A), Designated BCP/DR Participants
are defined as designated TPH that the Exchange determines are, as a
whole, necessary for the maintenance of fair and orderly markets in
the event of the activation of the Exchange's business continuity
and disaster recovery plans. Rule 6.18(b)(iv)(A)(1) and (2) provide
that Designated BCP/DR Participants will be identified based on
criteria determined by the Exchange and announced via Regulatory
Circular, which may include whether the TPH is an appointed
Designated Primary Market-Maker (``DPM''), Lead Market-Maker
(``LMM'') or Market-Maker in a class and the quality of markets
provided by the DPM, LMM, or Market-Maker, the amount of volume
transacted by the market participant in a class or on the Exchange
in general, operational capacity, trading experience, and historical
contribution to fair and orderly markets on the Exchange and shall
include, at a minimum, all Market-Makers in option classes
exclusively listed on the Exchange that stream quotes in such
classes and all DPMs in multiply listed option classes.
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    For example, if circumstances that led to use of the back-up data
center also caused a decrease in liquidity on the Exchange, the
Exchange might determine that it is necessary, in the interests of fair
and orderly markets, to temporarily heighten the quoting obligations of
Market-Makers or tighten bid/ask differentials during the use of the
back-up data center to enhance liquidity and continue to provide a
viable, competitive marketplace. Proposed Rule 6.18(b)(iv)(B) would
give the Exchange authority to take these types of action to help
ensure the maintenance of a fair and orderly market in the event the
Exchange were to switch operations to the back-up data center. In such
cases, the Exchange would notify market participants of any such
additional temporary requirements prior to implementation in a
reasonable manner as determined by the Exchange.\10\ The Exchange also
proposes non-substantive changes to the lettering in paragraph (b)(iv)
to accommodate the addition of new Rule 6.18(b)(iv)(B). Accordingly,
current Rule 6.18(b)(iv)(B) would become Rule 6.18(b)(iv)(C), and
current Rule 6.18(b)(iv)(C) would become Rule 6.18(b)(iv)(D).
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    \10\ The Exchange would make these notifications on the Systems
Notification page on the Exchange's Web site, via the Exchange's
Order Management Terminals (``OMTs''), via an Exchange-used
messaging service, and/or other reasonable notification mechanisms.
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    The Exchange proposes to add Rule 6.18(c) (Operation via Open
Outcry), which would provide that if the Exchange's data centers become
inoperable or otherwise unavailable for use due to a significant
systems failure, disaster or other unusual circumstances, the Exchange
may temporarily operate in an exclusively floor-based environment via
open outcry in order to preserve the Exchange's ability to conduct
business.\11\ Similar to the Exchange's authority in current Rule
6.18(c) (proposed Rule 6.18(d)), which permits the Exchange to operate
in a screen-based only environment if the trading floor facility is
inoperable, proposed Rule 6.18(c) would afford the Exchange necessary
flexibility to temporarily operate in open outcry in the event that the
Exchange's data centers are inoperable due to a significant systems
failure, disaster, or other unusual circumstances. The Exchange
believes that the providing authority for it to temporarily operate in
an exclusively floor-based environment in such a situation would help
ensure the Exchange's ability to continue to conduct business and help
preserve the Exchange's ability to continuously provide a fair and
orderly market. The Exchange also proposes non-substantive changes to
the lettering in Rule 6.18 to accommodate the addition of new Rule
6.18(c). Accordingly, current Rule 6.18(c) would become Rule 6.18(d).
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    \11\ In accordance with Rule 1001(a)(2)(v) of Regulation SCI,
the Exchange maintains written policies and procedures reasonably
designed to ensure that its trading systems (including with respect
to both the Exchange's primary and back-up data center trading
systems), have levels of capacity, integrity, resiliency,
availability, and security adequate to maintain the Exchange's
operational capability and promote the maintenance of fair and
orderly markets, including, but not limited to business continuity
and disaster recovery plans that are reasonably designed to achieve
next two-hour resumption of its critical SCI systems, as defined in
Rule 1000 of Regulation SCI. See Securities Exchange Act Release No.
73639 (November 19, 2014), 79 FR 72252 (December 5, 2014)
(Regulation Systems Compliance and Integrity) (File No. S7-01-13).
Notably, the Exchange employs business continuity and disaster
recovery standards reasonably designed to achieve two-hour
resumption of all trading systems that are essential to conducting
business on the Exchange and which the Exchange believes are
reasonably designed to support resumption in a significantly shorter
amount of time, including, but not limited to with respect to those
systems that are essential to the trading of proprietary products
and products exclusively licensed for trading on the Exchange.
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    The Exchange also proposes to add Rule 6.18(e) (Deactivation of
Certain Systems), which would provide that in the event of a systems
disruption or malfunction, security intrusion, systems compliance
issue, or other unusual circumstances, the Exchange may, in accordance
with the Rules or if necessary to maintain fair and orderly markets or
to protect investors, temporarily deactivate certain systems or systems
functionalities that are not essential to conducting business on the
Exchange. Many of the systems and systems functionalities described in
the Rules are provided optionally by the Exchange to enhance
participants' trading experience, but are not required to be active
under the Rules and are not

necessary for the Exchange to conduct business.\12\ As is described in
the Rules, many of the Exchange's systems functionalities may be made
available (or unavailable) by the Exchange on a class-by-class basis.
Such systems and systems functionalities that are non-essential to
conducting business on the Exchange include, but are not limited to,
Public Automated Routing (``PAR'') \13\ workstations, the Automated
Improvement Mechanism (``AIM''),\14\ and the Solicitation Auction
Mechanism (``SAM'').\15\
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    \12\ See, e.g., Rules 6.2, 6.2A, 6.2B, 6.12, 6.13, 6.13A, 6.13B,
6.14A, 6.53, 6.53C, 6.74A, and 6.74B.
    \13\ See generally Rule 6.12, Rule 6.12A.
    \14\ See generally Rule 6.74A.
    \15\ See generally Rule 6.74B.
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    In addition, the activation of other functionalities may not be
described by rule, but could be suspended temporarily (e.g., until the
end of a trading session or until systems disruptions could be
remedied) if disruption or malfunction of that functionality were to
interfere with the Exchange's ability to conduct business in a fair and
orderly manner. For example, if a certain order type were to cause a
wider system malfunction or a certain complex order product could not
be created without triggering widespread systems issues \16\ the
Exchange might announce, via its systems status page or otherwise, the
suspension of the availability of that order type or complex product.
If such an event impacts a non-essential system or system
functionality, the Exchange may deem it necessary to maintain fair and
orderly markets to deactivate that system or functionality until any
issues or [sic] resolved to prevent any potential harm to investors.
Proposed Rule 6.18(e) would also provide that the Exchange would notify
market participants of any such deactivation, and subsequent
reactivation, promptly and in a reasonable manner determined by the
Exchange. The Exchange may make these notifications on the Systems
Notification page on the Exchange's Web site, via OMT, via an Exchange-
used messaging service such as SendWordNow \17\ Regulatory Circular,
and/or other reasonable notification mechanisms.
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    \16\ For example, if the creation of a certain complex order
product (e.g. the October/November calendar spread in class XYZ)
were to cause significant trading disruptions in an entire class
(e.g., trading in all of XYZ) [sic]. Notably, under such
circumstances, these products would still be available via other
means such as legging.
    \17\ See CBOE Regulatory Circular RG14-030 (Send Word Now Smart
Notification Services).
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    Finally, the Exchange proposes Rule 6.18(f) (Connectivity
Restriction), which would permit the Exchange to temporarily restrict a
TPH's or associated person's access to the Hybrid Trading System or
other electronic trading systems if it is determined by the President
(or designee) of the Exchange, that because of a systems issue, such
access threatens the Exchange's ability to operate systems essential to
the maintenance of fair and orderly markets. Such access would remain
restricted until the end of the trading session or an earlier time if
the President (or designee) of the Exchange, in consultation with the
affected TPH(s), determines that lifting the restriction no longer
poses a threat to the Exchange's ability to operate systems essential
to conducting business or continuing to maintain a fair and orderly
market on the Exchange or investors. In the current electronic trading
environment, if a TPH's systems malfunctions or is compromised, it
could disrupt the Exchange's systems or market or harm other investors.
For example, software malfunctions may pose a risk to the Exchange's
systems, investors, and the general public without proper risk
controls. Proposed Rule 6.18(f) would simply give the Exchange the
authority to activate additional risk controls to stem the access of a
TPH that has experienced a systems disruption or malfunction, which
poses undue risk to the Exchange.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\18\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \19\ 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) \20\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ Id.
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    The proposed rule change is designed to promote the Exchange's
ability to ensure the continued operation of a fair and orderly market
in the event of a systems failure, disaster, or other unusual
circumstances that might threaten the ability to conduct business on
the Exchange. The Exchange recognizes that switching operations to the
back-up data center may occur in times of uncertainty or great
volatility in the markets. It is at these times that the investors may
have the greatest need for viable, trustworthy marketplaces. The
proposed rule change seeks to ensure that such a marketplace will exist
when most needed and thus, the Exchange believes that the proposed rule
protects investors in the most fundamental sense.
    In particular, the Exchange believes that proposed Rule
6.18(b)(iv)(B) allowing it to establish additional temporary
requirements applicable to Designated BCP/DR Participants and/or other
market participants during use of the back-up data center is consistent
with the Act in that additional temporary requirements such as
heightened quoting obligations for Market-Makers or more constricted
bid-ask differentials would help ensure the maintenance of a fair and
orderly market in the event of a disaster, which is in the interests of
all market participants, investors, and the general public. The
Exchange believes that adopting rules that help ensure that markets are
open and available during times of turmoil and emergency is an
important goal consistent with the Act. In the same vein, the Exchange
believes that proposed Rule 6.18(c) to temporarily operate in an
exclusively floor-based environment via open outcry in order to
preserve the Exchange's ability to conduct business serves the
interests of market participants, investors, and the general public by
helping to ensure that the Exchange's market remains open and available
for trading. The Exchange also believes that deactivation of certain
systems in proposed Rule 6.18(e), whether by rule or otherwise, in
order to ensure that the Exchange is able to provide a fair and orderly
market in the face of systems disruptions and malfunction is in the
best interests of market participants, investors, and the general
public.
    Similarly, the Exchange believes that the proposed connectivity
restriction in proposed Rule 6.18(f) would help ensure that the
Exchange remains open and available to all market participants. The
Exchange notes that similar [sic]

connectivity restrictions are already in place on the Exchange.\21\
Furthermore, the Exchange believes that proposed Rule 6.18(f) is
consistent with Section 6(b)(7) \22\ of the Act, which requires the
Exchange to adopt rules that provide a fair procedure for the
disciplining of members and persons associated with members, the denial
of membership to any person seeking membership therein, the barring of
any person from becoming associated with a member thereof, and the
prohibition or limitation by the exchange of any person with respect to
access to services offered by the exchange or a member thereof. The
Exchange notes that proposed Rule 6.18(f) is not aimed at denying
access to a particular TPH, but rather making sure that the Exchange
remains accessible to all other TPHs that do not threaten the
Exchange's ability to conduct normal business operations. The Exchange
notes that as soon as the Exchange, working with the TPH organization
that poses a threat to the Exchange, were able to confirm that the TPH
organization no longer posed such a threat, access to the Exchange
would be restored to that TPH. The Exchange believes that this is a
fair result and is [sic] the best interests of all market participants,
investors, and the general public.
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    \21\ See Rules 6.23A(b); 6.23C(a).
    \22\ 15 U.S.C. 78f(b)(7).
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    The Exchange also believes that the proposed rule change promotes
just and equitable principles of trade by adding detail and clarity to
the Rules. The proposed rule change seeks to provide additional clarity
to the Exchange's disaster recovery rules, putting all market
participants on notice as to how the Exchange will function in case of
significant systems disruption or other disaster situation. The
Exchange is continuously updating the Rules to provide additional
detail, clarity, and transparency regarding its operations and trading
systems and regulatory authority. The Exchange believes that the
adoption of detailed, clear, and transparent rules reduces burdens on
competition and promotes just and equitable principles of trade. The
Exchange also believes that adding greater detail to the Rules
regarding the Exchange's ability to ensure the continuous operation of
the market and preserve the ability to conduct business on the Exchange
will increase confidence in the markets and encourage wider
participation in the markets and greater investment.

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. Rather, the proposed rule
change will help ensure that competitive markets remain operative in
the event of a systems failure or other disaster event. The Exchange
notes that the proposed rule change is designed to provide the Exchange
with authority to require market participants to participate in, and
provide necessary liquidity to, the market to ensure that the Exchange
functions in a fair and orderly manner in the event of a significant
systems failure, disaster, or other unusual circumstances. Accordingly,
the Exchange believes that the proposed rule change is designed to
ensure fair and competitive markets at time when they may be most
needed.

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 written comments on the
proposed rule change.

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

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

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 1, 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-2016-078 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2016-078. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CBOE-2016-078,
and should be submitted on or before December 27, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-29044 Filed 12-2-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 250 (Wednesday, December 30, 2020)]
[Notices]
[Pages 86614-86617]
[FR Doc No: 2020-28803]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90774; File No. SR-NASDAQ-2020-092]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Extend the Expiration Date of the Temporary Amendments Set Forth in
SR-NASDAQ-2020-076 Concerning Video Conference Hearings

December 22, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on December 17, 2020, The Nasdaq Stock Market LLC
(``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Exchange has designated the proposed rule change as constituting a
``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-4
under the Act,\3\ which renders the proposal effective upon receipt of
this filing by the Commission. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to extend the expiration date of the
temporary amendments in SR-NASDAQ-2020-076 from December 31, 2020 to
April 30, 2021. The proposed rule change would not make any changes to
the text of the Exchange rules.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules, at
the principal office of the Exchange, 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
    In response to the COVID-19 global health crisis and the
corresponding need to restrict in-person activities, the Exchange filed
proposed rule change SR-NASDAQ-2020-076, which allows the Exchange's
Office of Hearing Officers (``OHO'') and the Exchange Review Council
(``ERC'') to conduct hearings, on a temporary basis, by video
conference, if warranted by the current COVID-19-related public health
risks posed by an in-person hearing. The COVID-19 conditions
necessitating these temporary amendments persist, with cases rapidly
escalating nationwide. Based on its assessment of current COVID-19
conditions, and the lack of certainty as to when COVID-19-related
health concerns will subside, the Exchange has determined that there is
a continued need for this temporary relief for several months beyond
December 31, 2020. Accordingly, the Exchange proposes to extend the
expiration date of the temporary rule amendments in SR-NASDAQ-2020-076
from December 31, 2020, to April 30, 2021.
    On November 5, 2020, the Exchange filed with the Commission a
proposed rule change for immediate effectiveness, SR-NASDAQ-2020-076,
to temporarily amend Exchange Rules 1015, 9261, 9524 and 9830 to grant
OHO and the ERC authority \4\ to conduct hearings in connection with
appeals of Membership Application Program decisions, disciplinary
actions, eligibility proceedings and temporary and permanent cease and
desist orders by video conference, if warranted by the current COVID-
19-related public health risks posed by an in-person hearing (the
``November 5 Filing'').\5\ The Commission published its notice of
filing and immediate effectiveness for the November 5 Filing on
November 10, 2020.\6\ The temporary amendments, as originally proposed
in the November 5 Filing, will expire on December 31, 2020, absent
another proposed rule change filing by the Exchange.
---------------------------------------------------------------------------

    \4\ For OHO hearings under Exchange Rules 9261 and 9830, the
proposed rule change temporarily grants authority to the Chief or
Deputy Chief Hearing Officer to order that a hearing be conducted by
video conference. For ERC hearings under Exchange Rules 1015 and
9524, this temporary authority is granted to the ERC or relevant
Subcommittee.
    \5\ The temporary amendments set forth in the November 5 Filing
were subject to a 30-day operative delay and, accordingly, became
operative on December 6, 2020. See infra note 6 and accompanying
text.
    \6\ See Exchange Act Release No. 90390 (November 10, 2020), 85
FR 73302 (November 17, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-NASDAQ-2020-076).
---------------------------------------------------------------------------

    The Exchange proposed the temporary amendments allowing for
specified OHO and ERC hearings to be conducted by video conference in
response to the COVID-19-related public health risks posed in
connection with conducting traditional, in-person hearings. As set
forth in the November 5 Filing, the Exchange relies on COVID-19 data
and the guidance issued by public health authorities to determine
whether the current public health risks presented by an in-person
hearing may warrant a hearing by video conference.\7\ As noted above,
the COVID-19-related public health risks necessitating this temporary
relief have not yet abated, with COVID-19 cases surging nationwide.
---------------------------------------------------------------------------

    \7\ As noted in the November 5 Filing, the temporary proposed
rule change grants discretion to OHO and the ERC to order a video
conference hearing. In deciding whether to schedule a hearing by
video conference, OHO and the ERC may consider a variety of other
factors in addition to COVID-19 trends.
---------------------------------------------------------------------------

    Based on its assessment of current COVID-19 conditions, including
the recent escalation in COVID-19 cases nationwide, the Exchange does
not believe the COVID-19-related health concerns necessitating this
relief will subside by December 31, 2020, and has determined that there
will be a continued need for this temporary relief for several months
beyond December 31, 2020. Accordingly, the Exchange proposes to extend
the expiration date of the temporary rule amendments in the November 5
Filing from December 31, 2020, to April 30, 2021. The extension of
these temporary amendments allowing for specified OHO and ERC hearings
to proceed by video conference will allow the Exchange's critical
adjudicatory functions to continue to operate effectively in these
extraordinary circumstances--enabling the Exchange to fulfill its
statutory obligations to protect investors and maintain fair and
orderly markets--while also protecting the health and safety of hearing
participants.
    The Exchange has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, so the Exchange can implement the proposed rule
change immediately.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ in particular, in that it is designed 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,
by continuing to provide greater harmonization between the Exchange
rules and FINRA rules of similar purpose,\10\ resulting in less
burdensome and more efficient regulatory compliance.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ See Exchange Act Release No. 90619 (December 9, 2020), 85
FR 81250 (December 15, 2020) (SR-FINRA-2020-042). In SR-FINRA-2020-
042, FINRA proposed rule changes to extend the expiration date of
the temporary rule amendments set forth in SR-FINRA-2020-015 and SR-
FINRA-2020-027 from December 31, 2020, to April 30, 2021. SR-FINRA-
2020-015 provided temporary relief from some timing, method of
service and other procedural requirements in FINRA's rules. SR-
FINRA-2020-027 allowed FINRA's OHO and the NAC to conduct hearings,
on a temporary basis, by video conference, if warranted by the
current COVID-19-related public health risks posed by an in-person
hearing.
---------------------------------------------------------------------------

    The proposed rule change, which extends the expiration date of the
temporary amendments to the Exchange rules set forth in the November 5
Filing, will continue to aid the Exchange's efforts to timely conduct
hearings in connection with its core adjudicatory functions. Given
current COVID-19 conditions and the uncertainty around when those
conditions will improve, without this relief allowing OHO and ERC
hearings to continue to proceed by video conference, such hearings may
need to be postponed indefinitely. The Exchange must be able to perform
its critical adjudicatory functions in order to fulfill its statutory
obligations to protect investors and maintain fair and orderly markets.
As such, this relief is essential to the Exchange's ability to fulfill
its statutory obligations and allows hearing participants to avoid the
serious COVID-19-related health and safety risks associated with in-
person hearings.
    Among other things, this relief will allow OHO to conduct temporary
cease and desist proceedings by video conference so that the Exchange
can take immediate action to stop ongoing customer harm and will allow
the ERC to timely provide members, disqualified individuals and other
applicants an

approval or denial of their applications. As set forth in detail in the
November 5 Filing, this temporary relief allowing OHO and ERC hearings
to proceed by video conference accounts for fair process considerations
and will continue to provide fair process while avoiding the COVID-19-
related public health risks for hearing participants. Accordingly, the
proposed rule change extending this temporary relief is in the public
interest and consistent with the Act's purpose.

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

    The Exchange does not believe that the temporary proposed rule
change will result in any burden on competition that is not necessary
or appropriate in furtherance of the purposes of the Act. As set forth
in the November 5 Filing, the proposed rule change is intended solely
to extend temporary relief necessitated by the continued impacts of the
COVID-19 outbreak and the related health and safety risks of conducting
in-person activities. The Exchange believes that the proposed rule
change will prevent unnecessary impediments to its operations,
including its critical adjudicatory processes, and its ability to
fulfill its statutory obligations to protect investors and maintain
fair and orderly markets that would otherwise result if the temporary
amendments were to expire on December 31, 2020.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) \11\ of the Act and Rule 19b-
4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
pursuant to Rule 19b-4(f)(6)(iii), the Commission may designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative so that the proposed rule change
may become operative immediately upon filing. As noted above, the
Exchange states that the COVID-related health and safety risks of
conducting in-person activities, which necessitated these temporary
amendments, persist and that cases are rapidly escalating nationwide.
Based on the Exchange's assessment of the current COVID-19 conditions,
including the lack of certainty as to when COVID-19-related health
concerns will subside, the Exchange has determined that that there is a
continued need for this temporary relief for several months beyond
December 31, 2020. Accordingly, the Exchange states that waiver of the
operative delay would allow the proposed changes, which are designed to
minimize disruptions to the Exchange's operations in order to maintain
fair processes and fulfill its obligations to protect investors and
maintain fair and orderly markets, to be operative on the date of
filing so the Exchange can implement the extension of these temporary
amendments immediately.
    The Exchange also indicates that this filing is eligible to become
operative immediately because the proposal would continue to provide
greater harmonization between the Exchange rules and FINRA rules that
serve a similar purpose, resulting in less burdensome and more
efficient regulatory compliance. This proposal would serve to extend
the expiration date of the temporary amendments to the Exchange rules
set forth in the November 5 Filing, which is consistent with FINRA's
extension to its comparable rules, where FINRA requested and the
Commission granted a waiver of the 30-day operative delay.\13\ The
Exchange also states that this temporary relief is necessary in order
to continue performing critical adjudicatory functions necessary to
meet its statutory obligations in light of COVID-19 related health and
safety risks associated with in-person hearings.
---------------------------------------------------------------------------

    \13\ See supra note 10 (referencing FINRA's proposal to extend
the expiration date of temporary rule amendments allowing hearings
to be conducted on a temporary basis by video conference if
warranted by COVID-19 related health risks). See also November 5
Filing, 85 FR at 73303 (stating that with certain exceptions, the
text of Exchange Rules 1015, 9261, 9524 and 9830 are substantially
the same as FINRA's rules).
---------------------------------------------------------------------------

    The Commission observes that this proposal, like the Exchange's
November 5 Filing and FINRA's comparable filing,\14\ provides only
temporary relief during the period in which the Exchange's operations
are impacted by COVID-19. As proposed, the changes would be in place
through April 30, 2021. 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.\15\
---------------------------------------------------------------------------

    \14\ See supra note 10 and accompanying text.
    \15\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2020-092 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-NASDAQ-2020-092. 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, on
business days between the hours of 10:00 a.m. and 3:00 p.m., located at
100 F Street NE, Washington, DC 20549. Copies of such 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-NASDAQ-2020-092 and should
be submitted on or before January 20, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2020-28803 Filed 12-29-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: February 15, 2008 (Volume 73, Number 32)]
[Notices]
[Page 8912-8913]
[DOCID:fr15fe08-114]

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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.

Extension:
    Rule 701; OMB Control No. 3235-0522; SEC File No. 270-306.

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget the request for extension of the previously approved
collection of information discussed below.
    Rule 701(17 CFR 230.701) under the Securities Act of 1933 (15
U.S.C. 77a et seq.) requires issuers conducting employee benefit plan
offerings in excess of $5 million in reliance on the rule to provide
the employees covered by the plan with risk and financial statement
disclosures. The purpose of Rule 701 is to ensure that a basic level of
information is available to employees and others when substantial
amounts of securities are issued in compensatory arrangements.
Information provided under Rule 701 is mandatory. Approximately 300
companies annually rely on the Rule 701 exemption and it takes 2 hours
per response. We estimate that 25% of the 2 hours per response (.5
hours) is prepared by the company for a total annual reporting burden
of 150

hours (.5 hours per response x 300 responses).
    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 control number.
    Written comments regarding the above information should be directed
to the following persons: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503 or send an e-mail to
<EMAIL_ADDRESS>and (ii) R. Corey Booth, Director/Chief Information

Officer, Securities and Exchange Commission, C/O Shirley Martinson,
6432 General Green Way, Alexandria, VA 22312; or send an e-mail to:
<EMAIL_ADDRESS>Comments must be submitted to OMB within 30 days

of this notice.

    Dated: February 11, 2008.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-2875 Filed 2-14-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 186 (Friday, September 25, 2015)]
[Notices]
[Pages 57835-57837]
[FR Doc No: 2015-24337]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2014-0935]

Letter of Recommendation for Washington State Ferries Liquefied
Natural Gas Conversion; Seattle, WA

AGENCY: Coast Guard, DHS.

ACTION: Notice and response to comments

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SUMMARY: On June 27, 2014, Coast Guard Sector Puget Sound received a
Letter of Intent (LOI) and Waterway Suitability Assessment (WSA) from
Washington State Ferries (WSF) for a proposal to modify existing
Washington State Ferry marine terminal operations to include the
handling of Liquefied Natural Gas (LNG). The LNG would be transferred
to and used as a marine fuel by six Issaquah Class Ferries converted to
use LNG propulsion systems. In accordance with regulation and policy
guidance, the Captain of the Port (COTP), Coast Guard Sector Puget
Sound, in cooperation with key port stakeholders, will review and
validate the information in the WSA. The COTP will then issue a Letter
of Recommendation (LOR) to the State of Washington Department of
Transportation that conveys the Coast Guard's recommendation on the
suitability of the following waterways for LNG marine traffic as it
relates to safety and security: Guemes Channel, Rosario Strait,
Thatcher Pass, Harney Channel, Upright Channel, Wasp Channel, San Juan
Channel, Spieden Channel, Haro Strait, Sidney Channel, Possession
Sound, Admiralty Inlet, Puget Sound, Sinclair Inlet, Rich Passage,
Elliot Bay, Admiralty Passage, North East Passage, and Colvos Passage.
    As part of this validation process, the Coast Guard, on November
12, 2014, published a ``Notice and Request for Comments'' in the
Federal Register which solicited public comments to inform the COTP's
recommendation. A number of comments were received, including two
outside the comment period. This document summarizes those comments,
explains whether or not they are appropriate for consideration under
regulation, and provides additional information to help inform the
public about the various issues raised in them.

FOR FURTHER INFORMATION CONTACT: For further information about this
document call or email LT Sarah Rodi[ntilde]o, Coast Guard Sector Puget
Sound; telephone<PHONE_NUMBER>, email<EMAIL_ADDRESS>
Background

    In accordance with 33 CFR 127.007, the COTP, Coast Guard Sector
Puget Sound, received an LOI and WSA from WSF on June 27, 2014
regarding WSF's proposal to modify existing Washington State Ferry
marine terminal operations and add the handling of LNG. The LNG would
be transferred to and used as a marine fuel by six Issaquah Class
Ferries converted to use LNG propulsion systems. The LOI notes that if
the conversion is completed, each vessel would require fueling by truck
once every 7 to 10 days.
    Pursuant to 33 CFR 127.009, and using the guidance set forth in
reference to the Coast Guard's Navigation and Vessel Inspection
Circular (NVIC) 01-2011, ``Guidance Related to Waterfront Liquefied
Natural Gas (LNG) Facilities,'' the COTP is reviewing and validating
WSF's WSA in cooperation with key port stakeholders. To assist the
COTP, the Coast Guard on November 12, 2014 published a ``Notice and
Request for Comments'' in the Federal Register (79 FR 67179) seeking
public comments on WSF's proposal. Once the COTP finishes the review
and validation of WSF's WSA, he will develop the LOR with accompanying
analysis and provide it to the State of Washington Department of
Transportation as the agency with jurisdiction over WSF's proposed
activity.
    Thirteen comments were received, including two outside the comment
period. This document summarizes those comments, explains whether or
not they are appropriate for consideration under 33 CFR 127.009, and
provides additional information to help inform the public about the
various issues raised in them. Comments that fell outside the scope of
the WSA but are relevant to the vessel design modifications will be
forwarded on to the Coast Guard Marine Safety Center (MSC) to be
considered during the design review and approval process in accordance
with 46 CFR 71.65-10.
    WSF's LOI, WSA, and other supporting documentation can be viewed
at: http://www.wsdot.wa.gov/Ferries/Environment/LNG.htm. The public
comments received by the Coast Guard can be viewed at: http://www.regulations.gov/#!docketBrowser;rpp=100;so=DESC;sb=docId;po=0;dct=PS;D=USCG-2014-0935.
A copy of NVIC 01-2011 is available for viewing on the Coast Guard's
Web site at http://www.uscg.mil/hq/cg5/nvic/2010s.asp.
    The Coast Guard sincerely appreciates the comments received.

Summary and Discussion of Comments Received

Cost and Funding of Conversion

    Multiple comments expressed concern that the proposed conversion is
too expensive and that the funding that would pay for the conversion
should be spent in a different manner. The COTP's role with regard to
WSF's proposal is limited to issuing an LOR to the Washington State
Department of Transportation regarding the suitability of the waterway
for LNG marine traffic based on the criteria listed in 33 CFR 127.009.
Cost of vessel conversion issues fall outside the scope of the LOR. As
such, these comments will not be considered by the COTP in issuing the
LOR.

Pollution

    Two comments expressed concern that LNG poses a pollution threat to
the environment. As an issue relevant under 33 CFR 127.009, the COTP
will consider those comments in issuing the LOR. For the public's
awareness, the Coast Guard will examine WSF's Emergency and Operations
Manuals as required by 33 CFR 127.019 covering the transfer system and
transfer procedures. These manuals include but are not limited to LNG
release response procedures, local response organizations contact

procedures, and emergency shutdown procedures.

Security

    Several comments expressed concern that exposed LNG tanks on the
proposed converted ferries pose a security risk. As an issue relevant
under 33 CFR 127.009, the COTP will consider those comments in issuing
the LOR. For the public's awareness on this topic, the Coast Guard
oversees a multilayered security framework under 33 CFR parts 101-105
to enhance maritime security throughout the Puget Sound region. If the
WSF proposal is approved by the Washington State Department of
Transportation, the marine terminal would be required to submit a
facility security plan in accordance with 33 CFR part 105. Washington
State Ferries is currently required to comply with 33 CFR part 104
which requires in-depth security assessments and Coast Guard-approved
vessel security plans. WSF currently has Coast Guard-approved vessel
security plans covering each of its vessels. These security plans would
be reviewed and amended as necessary to reflect the conversion to LNG
fuel.

Design of Converted Ferries

    Multiple comments expressed concern about the design of the
proposed converted ferries and that the use of LNG poses an unnecessary
risk to passengers. The COTP's role with regards to the subject
proposal is limited to issuing an LOR to the Washington State
Department of Transportation regarding the suitability of the waterway
for LNG marine traffic based on the items listed in 33 CFR 127.009.
This comment fell outside the scope of the Waterways Suitability
Assessment but is relevant to the vessel design modification and will
be forwarded on to the Coast Guard MSC to be considered during the
design approval process in accordance with 46 CFR 71.65-10. At this
time, final plans have not been submitted by WSF to MSC.
    One comment stated that WSF should be required to update its
Emergency Manual and include it as part of the docket. This comment
fell outside the scope of the WSA but for the public's awareness,
Operations and Emergency Manuals are required under 33 CFR 127.019. As
such, the Coast Guard will examine Emergency and Operation Manuals for
compliance with 33 CFR 127.305 and 33 CFR 127.307. WSF will be required
to submit copies of these manuals to the COTP 30 days prior to
transferring LNG. The COTP may also require WSF to update other
required safety plans as necessary.
    Two comments expressed concern that a seaplane or other aircraft
could collide with an LNG tank onboard a converted ferry. As an issue
relevant under 33 CFR 127.009, the COTP will consider those comments in
issuing the LOR. For the public's awareness on this topic, historical
data shows that instances of unintentional aircraft collisions with
ferries are extremely low. Malicious or intentional collisions will be
considered in the security threat mitigation strategies explained
previously.
    Two comments expressed concern that a large commercial vessel could
collide with a converted ferry carrying LNG causing a tank rupture and
explosion. As an issue relevant under 33 CFR 127.009, the COTP will
consider those comments in issuing the LOR. For the public's awareness
on this topic, the risk of collision between large commercial vessels
is mitigated significantly through a number of systems, processes, and
requirements already in place today including the Coast Guard's Vessel
Traffic Service (VTS), Automated Identification System (AIS), and
Automatic Radar Plotting Aids (ARPA) as well as established traffic
separation schemes and the International Regulations for Preventing
Collisions at Sea (COLREGS) Navigation Rules governing vessel
navigation. In addition, Federal and state laws require large vessels
transiting within Puget Sound, including WSF ferries, to be under the
direction and control of a federally licensed pilot. A federally
licensed pilot is an experienced navigator with expertise specific to
Puget Sound who provides significant risk mitigation in regards to
collisions. Of note, VTS Puget Sound closely monitors and, as
necessary, directs all large commercial vessel traffic throughout the
Puget Sound including the routes transited by the Issaquah class
ferries. The Issaquah class ferry routes have remained unchanged for at
least 55 years and there are no proposed changes to the routes.
    One comment expressed the opinion that the Coast Guard should
define strict criteria for conducting risk analysis and research. The
Coast Guard in our role as stewards of safety and security in the
maritime arena regularly integrate risk management into every aspect of
our maritime governance and operations. 33 CFR part 127 and NVIC 01-
2011 contain tailored requirements and guidance based on risk. In
addition, the Coast Guard has commissioned studies from Sandia National
Laboratories to examine the risks associated with potential LNG spills.
These reports are titled ``Guidance on Risk Analysis and Safety
Implication of a Large Liquefied Natural Gas (LNG) Over Water'' (2004)
and ``Breach and Safety Analysis of Spills over Water from Large
Liquefied Natural Gas Carriers'' (2008). These studies are available
online at: http://www.energy.ca.gov/lng/documents/2004-12_SANDIA-DOE_RISK_ANALYSIS.PDF and http://www.lngfacts.org/resources/SANDIA_2008_Report_-_Large_LNG_Vessel_Sa.pdf.
    Further, NVIC 01-11 was written based on Risk Based Decision
Making, COMDTINST M16010.3, which can be found at: http://www.uscg.mil/hq/cg5/cg5211/risk.asp.
    One comment expressed concern about WSF's plan to fuel the
converted ferries by parking a tank truck on the terminal transfer
span, placing the vehicle on an inclined plane. As an issue relevant
under 33 CFR 127.009, the COTP will consider this comment in issuing
the LOR. For the public's awareness, the Coast Guard will examine WSF's
Operations Manual as required by 33 CFR 127.019 covering the transfer
system and transfer procedures.

Regulatory Guidance

    One comment expressed concern that currently there are no Federal
regulations regarding LNG fueled passenger vessels. The commenter is
correct that there are currently no Federal regulations in place that
specifically govern the installation and use of LNG as a marine fuel.
This concept is new in the United States, although it is more commonly
used internationally. The Coast Guard has issued vessel design and LNG
bunkering policy documents that provide guidelines for facility and
vessel owner operators to use in consideration of facility operations
and vessel design. Those documents can be found at: http://www.uscg.mil/hq/cg5/lgcncoe/docs/Bunking%20Policy%20LTR.pdf and http://www.uscg.mil/hq/cg5/lgcncoe/docs/LNGF%20Policy%20LTR.pdf.
    One comment expressed concern that there is not explicit guidance
regarding the criteria for developing or evaluating a WSA. The
requirements and guidance are located in 33 CFR 127.007 and NVIC 01-11.

Problems With the WSA

    One comment expressed concern that the WSA referenced unverified
probability calculations for tank collisions from SOLAS Chapter II-1.
As an issue relevant under 33 CFR 127.009, the COTP will consider those
comments in issuing the LOR. For the public's awareness on this topic,
there is a lack

of historical information regarding tank collision probabilities, due
to a lack of previous occurrences. However, it should be noted that the
current resources available for mitigating vessel collisions
(previously described above) considerably reduce the probability of
vessel collisions.
    One comment stated that the SOLAS model used for collision damage
in the WSA is meant to be used on vessels designed for an ocean route
and the WSF ferries were constructed for lakes, bays and sounds route.
As an issue relevant under 33 CFR 127.009, the COTP will consider those
comments in issuing the LOR. For the public's awareness on this topic,
DNV-GL determined that the use of this model was the best approach
available because a probability model does not exist for a vessel of
similar structure as the WSF ferries.
    One commenter stated that DNV did not utilize the correct tank
volume of fuel in the risk assessment models. The correct tank volume
was incorporated in Revision 03 of the WSA.
    One comment stated that DNV-GL used inappropriate ignition
probability models when utilizing the International Association of Oil
and Gas Producers (OGP) Scenario 24 Floating Production, Storage, and
Offloading (FPSO) Vessels Gas model. As an issue relevant under 33 CFR
127.009, the COTP will consider those comments in issuing the LOR. For
the public's awareness on this topic, no statistically significant data
exists for ignition probability models for LNG as fuel onboard
passenger ferries. The model used by DNV-GL is meant to model ignition
probability onboard larger scale offshore vessels and was chosen
because it represents a more conservative and representative model for
application to the WSF vessel design.
    One comment expressed concern that the societal risks identified in
the WSA required that risks falling in the range between ``broadly
acceptable'' and ``maximum tolerable'' be mitigated so that they are As
Low As Reasonably Possible (ALARP) and that the WSA did not address
mitigating factors to reach the ALARP mitigation. As an issue relevant
under 33 CFR 127.009, the COTP will consider those comments in issuing
the LOR. During the validation process, the COTP will determine if
appropriate risk management strategies have been identified.
    One comment expressed concern that the WSA was not completed
objectively and appears to be incomplete. As an issue relevant under 33
CFR 127.009, the COTP will consider those comments in issuing the LOR.
As part of the LOR process and in accordance with NVIC 01-2011, the
COTP has been and will continue to review and validate the WSA in
cooperation with key port stakeholders. This validation will determine
if the WSA presents a realistic and credible analysis of the public
safety and security implications of introducing LNG marine traffic into
the port and waterway.
    This response to comments is issued under authority of 33 CFR
127.009.

    Dated: August 20, 2015.
M. W. Raymond,
Captain, U.S. Coast Guard, Captain of the Port, Sector Puget Sound.
[FR Doc. 2015-24337 Filed 9-24-15; 8:45 am]
 BILLING CODE 9110-04-P


[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8857-8858]
[FR Doc No: 2020-03064]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2879-012]

Green Mountain Power Corporation; Notice of Application Tendered
For Filing With the Commission and Establishing Procedural Schedule for
Licensing and Deadline for Submission of Final Amendments

    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.: 2879-012.
    c. Date Filed: January 30, 2020.
    d. Applicant: Green Mountain Power Corporation (Green Mountain
Power).
    e. Name of Project: Bolton Falls Hydroelectric Project.
    f. Location: The existing project is located on the Winooski River
in Washington County, Vermont. 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: Mr. John Greenan, P.E., Engineer, Green
Mountain Power Corporation, 1252 Post Road, Rutland, Vermont 05701;
phone:<PHONE_NUMBER> or email at<EMAIL_ADDRESS>    i. FERC Contact: Michael Tust,<PHONE_NUMBER> or
<EMAIL_ADDRESS>    j. This application is not ready for environmental analysis at this
time.
    k. Project Description: The project consists of the following
constructed facilities: (1) A 92-foot-high, 275-foot-wide timber crib
dam with a 5-foot-high rubber dam atop the timber crib construction
with a maximum crest elevation of 397 feet referenced to National
Geodetic Vertical 1929 Datum and a 196-foot-long reinforced concrete
spillway cap at a crest elevation of 392 feet; (2) a 59-acre
impoundment with a total storage capacity of 300 acre-feet at a normal
operating elevation of 397 feet; (3) a forebay with two concrete
intakes, each with a 3-inch-spaced trashrack; (4) two 10-foot diameter,
120-foot-long steel penstocks encased in concrete, extending from each
intake through the dam to the generating units; (5) a 73-foot-long, 57-
foot-wide powerhouse containing two horizontal, 3,750-kilowatt Kaplan
turbines with a total installed capacity of 7,500 kilowatts; (6) a 36-
inch diameter steel bypass pipe with an invert elevation of 383 feet
that discharges near the left side of the spillway base; (7) an
approximately 130-foot long, 5-kilovolt underground transmission line
connecting to an adjacent switchyard; (8) a 600-foot-long, 34.5-
kilovolt overhead transmission line connecting to a second switchyard;
and (9) appurtenant facilities. Green Mountain Power also maintains
day-use recreation facilities at the project, including a picnic area,
parking lot, trails, fishing access, and a canoe launch and portage
trail.
    Green Mountain Power proposes to operate in automated run-of-river
mode as it does under its current practice but instead of providing a
300-cfs minimum flow into the bypassed reach via spill over the dam or
through the powerhouse, Green Mountain Power proposes to provide a
seasonal aesthetic spill flow of 75 cfs or inflow, whichever is less,
into the bypassed reach during daylight hours from April 1 through
December 15. Green Mountain Power would only provide leakage flows from
the dam into the bypassed reach during nighttime hours from April 1
through December 15 as well as during day and nighttime hours from
December 16 through March 31. Under normal flow conditions during
periods when aesthetic spillage is required, Green Mountain proposes to
maintain the impoundment at an elevation of 397.25 feet. During periods
when aesthetic spillage over the dam is not required, Green Mountain
Power proposes to maintain the reservoir at an elevation of 397 feet as
it does under its existing operation. In addition to operating and
maintaining its existing recreation facilities, Green Mountain Power
proposes the following improvements to its recreation facilities: (1)
Relocate the existing parking area out of the floodplain; (2) place
barriers and signage to redirect foot traffic away from areas with
state-designated rare creeping lovegrass at the day-use area; (3) add
two picnic tables and an information kiosk to the day-use area; (4)
improve signage at the portage landing and along the portage trail for
boaters; (5) construct an improved portage landing; and (6) clear brush
along the portage trail.
    Green Mountain Power is proposing to remove approximately 9.2 acres
of lands and water from the current project boundary because these
areas do not contain any project recreation facilities and are not
necessary for project operation and maintenance. These areas include
4.2 acres of land south of the existing portage trail and northwest of
the VELCO transmission line, 2.9 acres of land south of Power Plant
Road, and 2.1 acres of the Winooski River and shoreline downstream of
the dam located outside of the project bypassed reach and tailrace. In
addition, Green Mountain Power is proposing to add approximately 7.6
acres of land to the project boundary. These areas include: (1)
Approximately 1.4 acres of land along a secondary access road located
to the south of the portage trail take-out; (2) approximately 4.1 acres
of land along the middle section of the portage trail to fully enclose
the portage trail; and (3) approximately 2.1 acres of lands along the
primary project access road to provide vehicular and pedestrian access
to the project for operation and maintenance purposes as well as access
to the project's day-use recreation area.
    l. Locations of the Application: A copy of the application is
available for review at the Commission in the Public Reference Room or
may be viewed on the Commission's website at http://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, please contact FERC Online Support at
<EMAIL_ADDRESS>(866) 208-3676 (toll free), or (202) 502-
8659 (TTY).
    m. You may also 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. Procedural Schedule: The application will be processed according
to the following preliminary Hydro Licensing Schedule. Revisions to the
schedule may be made as appropriate.

------------------------------------------------------------------------
              Milestone                           Target date
------------------------------------------------------------------------
Notice of Acceptance/Notice of Ready  March 2020.
 for Environmental Analysis.
Filing of recommendations,            May 2020.
 preliminary terms and conditions,
 and fishway prescriptions.
Commission issues Draft               November 2020.
 Environmental Assessment (EA).
Comments on Draft EA................  December 2020.
Modified terms and conditions.......  February 2021.
Commission issues Final EA..........  May 2021.
------------------------------------------------------------------------

    o. Final amendments to the application must be filed with the
Commission no later than thirty (30) days from the issuance date of the
notice of ready for environmental analysis.

    Dated: February 10, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-03064 Filed 2-14-20; 8:45 am]
 BILLING CODE 6717-01-P