[Federal Register: November 14, 2008 (Volume 73, Number 221)]
[Proposed Rules]
[Page 67463-67467]
[DOCID:fr14no08-45]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 67

[Docket No. FEMA-B-1018]

Proposed Flood Elevation Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Proposed rule.

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SUMMARY: Comments are requested on the proposed Base (1 percent annual-
chance) Flood Elevations (BFEs) and proposed BFE modifications for the
communities listed in the table below. The purpose of this notice is to
seek general information and comment regarding the proposed regulatory
flood elevations for the reach described by the downstream and upstream
locations in the table below. The BFEs and modified BFEs are a part of
the floodplain management measures that the community is required
either to adopt or show evidence of having in effect in order to
qualify or remain qualified for participation in the National Flood
Insurance Program (NFIP). In addition, these elevations, once
finalized, will be used by insurance agents, and others to calculate
appropriate flood insurance premium rates for new buildings and the
contents in those buildings.

DATES: Comments are to be submitted on or before February 12, 2009.

ADDRESSES: The corresponding preliminary Flood Insurance Rate Map
(FIRM) for the proposed BFEs for each community are available for
inspection at the community's map repository. The respective addresses
are listed in the table below.
    You may submit comments, identified by Docket No. FEMA-B-1018, to
William R. Blanton, Jr., Chief, Engineering Management Branch,
Mitigation Directorate, Federal Emergency Management Agency, 500 C
Street, SW., Washington, DC 20472,<PHONE_NUMBER>, or (e-mail)
<EMAIL_ADDRESS>
FOR FURTHER INFORMATION CONTACT: William R. Blanton, Jr., Chief,
Engineering Management Branch, Mitigation Directorate, Federal
Emergency Management Agency, 500 C Street, SW., Washington, DC 20472,
(202) 646-3151 or (e-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) proposes to make determinations of BFEs and modified BFEs for
each community listed below, in accordance with section 110 of the
Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR
67.4(a).
    These proposed BFEs and modified BFEs, together with the floodplain
management criteria required by 44 CFR 60.3, are the minimum that are
required. They should not be construed to mean that the community must
change any existing ordinances that are more stringent in their
floodplain management requirements. The community may at any time enact
stricter requirements of its own, or pursuant to policies established
by other Federal, State, or regional entities. These proposed
elevations are used to meet the floodplain management requirements of
the NFIP and are also used to calculate the appropriate flood insurance
premium rates for new buildings built after these elevations are made
final, and for the contents in these buildings.
    Comments on any aspect of the Flood Insurance Study and FIRM, other
than the proposed BFEs, will be considered. A letter acknowledging
receipt of any comments will not be sent.
    Administrative Procedure Act Statement. This matter is not a
rulemaking governed by the Administrative Procedure Act (APA), 5 U.S.C.
553. FEMA publishes flood elevation determinations for notice and
comment; however, they are governed by the Flood Disaster Protection
Act of 1973, 42 U.S.C. 4105, and the National Flood Insurance Act of
1968, 42 U.S.C. 4001 et seq., and do not fall under the APA.
    National Environmental Policy Act. This proposed rule is
categorically excluded from the requirements of 44 CFR part 10,
Environmental Consideration. An environmental impact assessment has not
been prepared.
    Regulatory Flexibility Act. As flood elevation determinations are
not within the scope of the Regulatory Flexibility Act, 5 U.S.C. 601-
612, a regulatory flexibility analysis is not required.
    Executive Order 12866, Regulatory Planning and Review. This
proposed rule is not a significant regulatory action under the criteria
of section 3(f) of Executive Order 12866, as amended.
    Executive Order 13132, Federalism. This proposed rule involves no
policies that have federalism implications under Executive Order 13132.
    Executive Order 12988, Civil Justice Reform. This proposed rule
meets the applicable standards of Executive Order 12988.

List of Subjects in 44 CFR Part 67

    Administrative practice and procedure, Flood insurance, Reporting
and recordkeeping requirements.
    Accordingly, 44 CFR part 67 is proposed to be amended as follows:

PART 67--[AMENDED]

    1. The authority citation for part 67 continues to read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp., p. 376.

Sec.  67.4  [Amended]

    2. The tables published under the authority of Sec.  67.4 are
proposed to be amended as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                * Elevation in feet
                                                                                (NGVD)  + Elevation in
                                                                                feet (NAVD)
             State               City/town/county      Source of         Location**        Depth in feet above
                                                        flooding                                 ground
                                                                                -------------------------
                                                                                Existing     Modified
----------------------------------------------------------------------------------------------------------------
                                         Township of Columbia, Michigan
----------------------------------------------------------------------------------------------------------------
Michigan......................  Township of        Goose Creek......  Approximately            None         +945
                                 Columbia.                             0.6 mile
                                                                       upstream of M
                                                                       50.
                                                                      Approximately            None         +945
                                                                       0.7 mile
                                                                       upstream of M
                                                                       50.
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
+ North American Vertical Datum.
 Depth in feet above ground.
** BFEs to be changed include the listed downstream and upstream BFEs, and include BFEs located on the stream
 reach between the referenced locations above. Please refer to the revised Flood Insurance Rate Map located at
 the community map repository (see below) for exact locations of all BFEs to be changed.

Send comments to William R. Blanton, Jr., Chief, Engineering Management Branch, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.
                                                    ADDRESSES
Township of Columbia
Maps are available for inspection at Township Offices, 8500 Jefferson Road, Brooklyn, MI 49230.
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
                                                                  * Elevation in feet
                                                                 (NGVD) + Elevation in
                                                                feet (NAVD)
         Flooding source(s)            Location of referenced     Depth in feet above      Communities affected
                                            elevation**                 ground
                                                              --------------------------
                                                                Effective     Modified
----------------------------------------------------------------------------------------------------------------
                                Hamilton County, Florida, and Incorporated Areas
----------------------------------------------------------------------------------------------------------------
Little Alapaha River................  At the confluence with           +79          +81  Unincorporated Areas of
                                       Unnamed Tributary.                                 Hamilton County.
                                      At the confluence with          None          +85
                                       Little Alapaha River
                                       Unnamed Tributary.
Little Alapaha River Unnamed          At the confluence with          None          +85  Unincorporated Areas of
 Tributary.                            Little Alapaha River.                              Hamilton County.
                                      Approximately 950 feet          None         +125
                                       upstream of U.S.
                                       Highway 129.
Suwannee River Unnamed Tributary....  Just upstream of Jewett         None          +88  Town of White Springs.
                                       Street.
                                      Approximately 600 feet          None         +109
                                       upstream of 1st Street.
Timber Lake.........................  Entire shoreline.......         None         +135  Unincorporated Areas of
                                                                                Hamilton County.
Turket Creek........................  Just upstream of the            None          +92  Unincorporated Areas of
                                       confluence with the                                Hamilton County, Town
                                       Alapahoochee River.                                of Jennings.
                                      Approximately 1,000             None         +138
                                       feet upstream of
                                       Hamilton Avenue.
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
+ North American Vertical Datum.
 Depth in feet above ground.
** BFEs to be changed include the listed downstream and upstream BFEs, and include BFEs located on the stream
 reach between the referenced locations above. Please refer to the revised Flood Insurance Rate Map located at
 the community map repository (see below) for exact locations of all BFEs to be changed.
Send comments to William R. Blanton, Jr., Chief, Engineering Management Branch, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.
                                                    ADDRESSES
Town of Jennings
Maps are available for inspection at Jennings Town Hall, 1199 Hamilton Avenue, Jennings, FL.

Town of White Springs
Maps are available for inspection at White Springs Town Hall, 10363 Bridge Street, White Springs, FL.

                                     Unincorporated Areas of Hamilton County
Maps are available for inspection at Hamilton County Clerk's Office, 207 NE 1st Street, Room 106, Jasper, FL.
----------------------------------------------------------------------------------------------------------------

                                Lamar County, Mississippi, and Incorporated Areas
----------------------------------------------------------------------------------------------------------------
Gordons Creek.......................  Approximately 1,984             None         +252  Unincorporated Areas of
                                       feet upstream of                                   Lamar County.
                                       Interstate 59.
                                      At Interstate 59.......         None         +252
Little Beaver Creek.................  Approximately 0.8 miles         None         +227  Unincorporated Areas of
                                       downstream of Browns                               Lamar County.
                                       Bridge Road.
                                      Approximately 210 feet          None         +237
                                       upstream of Browns
                                       Bridge Road.
Mill Creek No. 1....................  Approximately 1,800             None         +260  Unincorporated Areas of
                                       feet downstream of                                 Lamar County, Town of
                                       Hardie Road.                                       Sumrall.
                                      Approximately 1.6 miles         None         +313
                                       upstream of State
                                       Highway 42.
Mixons Creek Tributary 3............  Approximately 935 feet          None         +187  Unincorporated Areas of
                                       upstream of the                                    Lamar County.
                                       confluence of Mixons
                                       Creek.
                                      Approximately 1.5 miles         None         +235
                                       upstream of the
                                       confluence of Mixons
                                       Creek.
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
+ North American Vertical Datum.
 Depth in feet above ground.
** BFEs to be changed include the listed downstream and upstream BFEs, and include BFEs located on the stream
 reach between the referenced locations above. Please refer to the revised Flood Insurance Rate Map located at
 the community map repository (see below) for exact locations of all BFEs to be changed.
Send comments to William R. Blanton, Jr., Chief, Engineering Management Branch, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.
                                                    ADDRESSES
Town of Sumrall
Maps are available for inspection at Town Hall, 4880 Highway 589, Sumrall, MS 39482.

                                      Unincorporated Areas of Lamar County
Maps are available for inspection at County Administrator's Office, 403 Main Street, Purvis, MS 39475.
----------------------------------------------------------------------------------------------------------------
                             Lauderdale County, Mississippi, and Incorporated Areas
----------------------------------------------------------------------------------------------------------------
McLemore Branch.....................  Approximately 2,427             None         +357  City of Meridian,
                                       feet upstream of the                               Unincorporated Areas
                                       confluence of Newell                               of Lauderdale County.
                                       Branch.
                                      Approximately 3,375             None         +403
                                       feet upstream of
                                       Windmill Drive.
Sowashee Creek Tributary 10.........  Approximately 700 feet          None         +360  Town of Marion,
                                       downstream of Dale                                 Unincorporated Areas
                                       Drive.                                             of Lauderdale County.
                                      Approximately 710 feet          None         +399
                                       upstream of Cotton Gin
                                       Road.
Sowashee Creek Tributary 8..........  Approximately 990 feet          None         +388  Town of Marion,
                                       upstream of the                                    Unincorporated Areas
                                       confluence of Sowashee                             of Lauderdale County.
                                       Creek Tributary 10.
                                      Approximately 2,475             None         +464
                                       feet upstream of State
                                       Highway 39.
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
+ North American Vertical Datum.
 Depth in feet above ground.
** BFEs to be changed include the listed downstream and upstream BFEs, and include BFEs located on the stream
 reach between the referenced locations above. Please refer to the revised Flood Insurance Rate Map located at
 the community map repository (see below) for exact locations of all BFEs to be changed.
Send comments to William R. Blanton, Jr., Chief, Engineering Management Branch, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.
                                                    ADDRESSES
City of Meridian
Maps are available for inspection at Meridian City Hall, 601 24th Avenue, Meridian, MS 39302.

Town of Marion
Maps are available for inspection at Marion Town Hall, 6021 Dale Drive, 39342, MS.

                                    Unincorporated Areas of Lauderdale County
Maps are available for inspection at Tax Assessor's Office, 500 Constitution Avenue, Meridian, MS 39301.
----------------------------------------------------------------------------------------------------------------

                                   Clark County, Ohio, and Incorporated Areas
----------------------------------------------------------------------------------------------------------------
Chapman Creek.......................  3300 feet upstream from         None         +950  Unincorporated Areas of
                                       confluence of Chapman                              Clark County
                                       Creek and Mad River.
                                      5200 feet upstream from         None         +959
                                       confluence of Chapman
                                       Creek and Mad River.
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
 Depth in feet above ground.
+ North American Vertical Datum.
** BFEs to be changed include the listed downstream and upstream BFEs, and include BFEs located on the stream
 reach between the referenced locations above. Please refer to the revised Flood Insurance Rate Map located at
 the community map repository (see below) for exact locations of all BFEs to be changed.
Send comments to William R. Blanton, Jr., Chief, Engineering Management Branch, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.
                                                    ADDRESSES
                                      Unincorporated Areas of Clark County
Maps are available for inspection at Springview Government Center, 3130 East Main Street, Springfield, OH 45505.
----------------------------------------------------------------------------------------------------------------
                                   Preble County, Ohio, and Incorporated Areas
----------------------------------------------------------------------------------------------------------------
Periwinkle Run......................  Confluence with                 None        +1049  Unincorporated Areas of
                                       Sevenmile Creek.                                   Preble County.
                                      2,270 feet upstream of          None        +1057
                                       confluence with
                                       Sevenmile Creek.
Sevenmile Creek.....................  Upstream of Eaton-New           None        +1049  Unincorporated Areas of
                                       Hope Road bridge.                                  Preble County.
                                      3,175 feet Upstream of          None        +1059
                                       Eaton-New Hope Road
                                       bridge.
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
+ North American Vertical Datum.
 Depth in feet above ground.
** BFEs to be changed include the listed downstream and upstream BFEs, and include BFEs located on the stream
 reach between the referenced locations above. Please refer to the revised Flood Insurance Rate Map located at
 the community map repository (see below) for exact locations of all BFEs to be changed.
Send comments to William R. Blanton, Jr., Chief, Engineering Management Branch, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.
                                                    ADDRESSES
                                      Unincorporated Areas of Preble County
Maps are available for inspection at Preble County Courthouse, 101 East Main Street, Eaton, OH 45320.
----------------------------------------------------------------------------------------------------------------
                                 Sauk County, Wisconsin, and Incorporated Areas
----------------------------------------------------------------------------------------------------------------
Baraboo River.......................  Columbia County                 +806         +802  City of Baraboo, City
                                       boundary.                                          of Reedsburg,
                                                                                Unincorporated Areas
                                                                                of Sauk County,
                                                                                Village of Lavalle,
                                                                                Village of North
                                                                                Freedom, Village of
                                                                                Rock Springs, Village
                                                                                of West Baraboo.
                                      3.7 miles downstream of         +904         +905
                                       Juneau County boundary.
Baraboo River Tributary.............  64 ft upstream of State         None         +849  Unincorporated Areas of
                                       Hwy 33.                                            Sauk County.
                                      350 ft upstream of              None         +880
                                       Berkley Boulevard.
Clark Creek.........................  Confluence with Baraboo         None         +818  Unincorporated Areas of
                                       River.                                             Sauk County.
                                      0.37 mi upstream from           None        +1234
                                       bridge at Tower Road.
Devil's Lake Tributary..............  Confluence with Baraboo         None         +819  City of Baraboo,
                                       River.                                             Unincorporated Areas
                                                                                of Sauk County.
                                      0.57 mi upstream from           None         +979
                                       County Highway DL.
Hay Creek...........................  0.56 mi upstream of             None         +909  Unincorporated Areas of
                                       County Highway F.                                  Sauk County.
                                      161 ft upstream of              None         +909
                                       County Highway F.
Hulbert Creek.......................  0.32 mi upstream of             +826         +827  City of Wisconsin
                                       U.S. Highway 12.                                   Dells.
                                      0.51 mi upstream of             +829         +831
                                       Trout Road (Wisconsin
                                       Dells).

Pine Creek..........................  874 ft downstream of            None         +858  Unincorporated Areas of
                                       Hatchery Road.                                     Sauk County.
                                      Confluence with Skillet         None         +869
                                       Creek.
Skillet Creek.......................  Confluence with Pine            None         +869  Unincorporated Areas of
                                       Creek.                                             Sauk County.
                                      28 ft upstream of               None         +981
                                       bridge at State
                                       Highway 159.
Tributary to Devil's Lake Tributary.  Confluence with Devil's         None         +871  Unincorporated Areas of
                                       Lake Tributary.                                    Sauk County.
                                      0.67 mi upstream from           None        +1117
                                       bridge at State
                                       Highway 159.
Wisconsin River.....................  6.9 miles upstream of           +710         +711  Village of Merrimac,
                                       Richland County                                    Unincorporated Areas
                                       boundary.                                          of Sauk County,
                                                                                Village of Prairie Du
                                                                                Sac, Village of Sauk
                                                                                City, Village of
                                                                                Spring Green.
                                      12.5 miles downstream           +807         +808
                                       of Kilbourn Dam.
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
+ North American Vertical Datum.
 Depth in feet above ground.
** BFEs to be changed include the listed downstream and upstream BFEs, and include BFEs located on the stream
 reach between the referenced locations above. Please refer to the revised Flood Insurance Rate Map located at
 the community map repository (see below) for exact locations of all BFEs to be changed.
Send comments to William R. Blanton, Jr., Chief, Engineering Management Branch, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472.

                                                    ADDRESSES
City of Baraboo
Maps are available for inspection at 135 4th Street, Barboo, WI 53913.

City of Reedsburg
Maps are available for inspection at 134 South Locust Street, Reedsburg, WI 53959.

City of Wisconsin Dells
Maps are available for inspection at 300 La Crosse Street, Wisconsin Dells, WI 53965.

                                       Unincorporated Areas of Sauk County
Maps are available for inspection at 505 Broadway, Baraboo, WI 53913.

Village of Lake Delton
Maps are available for inspection at 50 Wisconsin Dells Parkway South, Lake Delton, WI 53940.

Village of Lavalle
Maps are available for inspection at 103 West Main Street, La Valle, WI 53941.

Village of Merrimac
Maps are available for inspection at 100 Cook Street, Merrimac, WI 53561.

Village of North Freedom
Maps are available for inspection at 103 North Maple Street, North Freedom, WI 53951.

Village of Prairie Du Sac
Maps are available for inspection at 335 Galena Street, Prairie du Sac, WI 53578.

Village of Rock Springs
Maps are available for inspection at 201 West Broadway Avenue, Rock Springs, WI 53961.

Village of Sauk City
Maps are available for inspection at 726 Water Street, Sauk City, WI 53583.

Village of Spring Green
Maps are available for inspection at 154 North Lexington Street, Spring Green, WI 53588.

Village of West Baraboo
Maps are available for inspection at 500 Cedar Street, Baraboo, WI 53913.
----------------------------------------------------------------------------------------------------------------

(Catalog of Federal Domestic Assistance No. 97.022, ``Flood
Insurance.'')
    Dated: November 3, 2008.
Michael K. Buckley,
Acting Assistant Administrator, Mitigation Directorate, Department of
Homeland Security, Federal Emergency Management Agency.
[FR Doc. E8-27038 Filed 11-13-08; 8:45 am]

BILLING CODE 9110-12-P


[Federal Register Volume 79, Number 83 (Wednesday, April 30, 2014)]
[Notices]
[Pages 24425-24427]
[FR Doc No: 2014-09902]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9910-27-OA]

Notification of a Request for Nominations of Experts for a
Science Advisory Board Panel on Economy-Wide Modeling

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The EPA Science Advisory Board (SAB) Staff Office requests
public nominations of scientific experts to form an SAB panel to
provide advice through the chartered SAB on the appropriate role of
economy-wide modeling of the costs and benefits of air regulations in
informing the regulatory process.

DATES: Nominations should be submitted by May 21, 2014 per the
instructions below.

FOR FURTHER INFORMATION CONTACT: Any member of the public wishing
further information regarding this Notice and Request for Nominations
may contact Dr. Holly Stallworth, Designated Federal Officer (DFO), SAB
Staff Office, by telephone/voice mail at<PHONE_NUMBER> or via email at
<EMAIL_ADDRESS>General information concerning the EPA SAB
can be found at the EPA SAB Web site at http://www.epa.gov/sab.

SUPPLEMENTARY INFORMATION:
    Background: The SAB (42 U.S.C. 4365) is a chartered Federal
Advisory Committee that provides independent scientific and technical
peer review, advice, consultation, and recommendations to the EPA
Administrator on the technical basis for EPA actions. As a Federal
Advisory Committee, the SAB conducts business in accordance with the
Federal Advisory Committee Act (FACA) (5 U.S.C. App. 2) and related
regulations. The SAB will comply with the

provisions of FACA and all appropriate SAB Staff Office procedural
policies.
    On February 5, 2014, the EPA's National Center for Environmental
Economics (NCEE) and the Office of Air and Radiation (OAR) announced
(79 FR 6899--6900) that they had developed a draft ``analytic
blueprint'' of materials on the technical merits and challenges of
using economy-wide models to evaluate the social costs, benefits and
economic impacts associated with EPA's air regulations. These
materials, along with draft charge questions for the SAB and public
comments can be found in the docket at http://www.regulations.gov under
the docket identification, EPA-HQ-OA-2014-0129.
    The EPA has requested that the SAB provide review of the EPA's
modeling and ability to measure full regulatory impacts and to make
recommendations on the use of economy-wide modeling frameworks to
characterize the social costs, benefits, and economic impacts of air
regulations with the aim of improving benefit-cost and economic impact
analyses used to inform decision-making at the agency. As a first step,
the EPA has asked the SAB to provide feedback on its draft charge
questions and analytic blueprint following the 60-day public comment
period referenced in EPA-HQ-OA-2014-0129.
    With today's Notice, the Science Advisory Board Staff Office is
soliciting nominations for an expert panel to provide advice to EPA
through the chartered SAB on its draft analytical blueprint and any
subsequent materials developed on economy-wide modeling. To conduct
this review, the SAB Staff Office is forming an expert panel under the
auspices of the Chartered SAB.
    Technical Contact for EPA's Draft Report: For information
concerning EPA's draft charge questions and draft analytic blueprint on
economy-wide modeling, please contact Dr. Ann Wolverton, National
Center for Environmental Economics at<EMAIL_ADDRESS>or 202-566-
2278.
    Request for Nominations: The SAB Staff Office requests nominations
of environmental economists and other scientists with expertise in the
following areas: Cost-benefit analysis; computable general equilibrium
(CGE) modeling with experience in representing environmental and/or
energy policy; the use of detailed sector models and linking CGE models
to detailed sector models; non-CGE (macro) models for capturing general
equilibrium effects of environmental policy; dynamic stochastic
modeling in CGE and/or macro model contexts; representation of health
improvements and other types of benefits in a CGE or non-CGE framework
(e.g. use of state-dependent utility functions); transition dynamics in
a general equilibrium framework (e.g., in labor or capital markets;
spatial sorting models); interface of macro- and micro-economic
modeling; quantifying and monetizing spatially differentiated
mortality/morbidity/non-health welfare, and non-use effects of air
quality; and the representation of non-use or environmental preferences
in the utility function. The SAB Staff Office seeks labor economists
with a macroeconomic or general equilibrium perspective who have
expertise in the short-and long-run implications of regulatory
decisions for household labor market decisions (e.g., labor-leisure
trade-offs); and expertise in the labor market implications of
productivity improvements due to better health. The SAB Staff Office is
also seeking expertise on risk and uncertainty to formally characterize
uncertainty in CGE and non-CGE models including representation of the
effects of uncertainty on behavior of economic agents.
    Process and Deadline for Submitting Nominations: Any interested
person or organization may nominate qualified individuals in the areas
of expertise described above for possible service on this expert panel.
Self-nominations are allowed as well. Nominations should be submitted
in electronic format (preferred over hard copy) following the
instructions for ``Nominating Experts to Advisory Panels and Ad Hoc
Committees Being Formed,'' provided on the SAB Web site. The
instructions can be accessed through the ``Nomination of Experts'' link
on the blue navigational bar at the SAB Web site http://www.epa.gov/sab. To receive full consideration, nominations should include all of
the information requested below.
    EPA's SAB Staff Office requests contact information about the
person making the nomination; contact information about the nominee;
the disciplinary and specific areas of expertise of the nominee; the
nominee's resume or curriculum vitae; sources of recent grant and/or
contract support; and a biographical sketch of the nominee indicating
current position, educational background, research activities, and
recent service on other national advisory committees or national
professional organizations.
    Persons having questions about the nomination procedures, or who
are unable to submit nominations through the SAB Web site, should
contact Dr. Holly Stallworth, DFO, as indicated above in this notice.
Nominations should be submitted in time to arrive no later than May 21,
2014. EPA values and welcomes diversity. In an effort to obtain
nominations of diverse candidates, EPA encourages nominations of women
and men of all racial and ethnic groups.
    The EPA SAB Staff Office will acknowledge receipt of nominations.
The names and biosketches of qualified nominees identified by
respondents to this Federal Register notice, and additional experts
identified by the SAB Staff, will be posted in a List of Candidates on
the SAB Web site at http://www.epa.gov/sab. Public comments on this
List of Candidates will be accepted for 21 days. The public will be
requested to provide relevant information or other documentation on
nominees that the SAB Staff Office should consider in evaluating
candidates.
    For the EPA SAB Staff Office a balanced review panel includes
candidates who possess the necessary domains of knowledge, the relevant
scientific perspectives (which, among other factors, can be influenced
by work history and affiliation), and the collective breadth of
experience to adequately address the charge. In forming this expert
panel, the SAB Staff Office will consider public comments on the List
of Candidates, information provided by the candidates themselves, and
background information independently gathered by the SAB Staff Office.
Selection criteria to be used for panel membership include: (a)
Scientific and/or technical expertise, knowledge, and experience
(primary factors); (b) availability and willingness to serve; (c)
absence of financial conflicts of interest; (d) absence of an
appearance of a lack of impartiality; (e) skills working in committees,
subcommittees and advisory panels; and, (f) for the panel as a whole,
diversity of expertise and viewpoints.
    The SAB Staff Office's evaluation of an absence of financial
conflicts of interest will include a review of the ``Confidential
Financial Disclosure Form for Special Government Employees Serving on
Federal Advisory Committees at the U.S. Environmental Protection
Agency'' (EPA Form 3110-48). This confidential form allows government
officials to determine whether there is a statutory conflict between a
person's public responsibilities (which include membership on an EPA
federal advisory committee) and private interests and activities, or
the appearance of a lack of impartiality, as defined by federal

regulation. The form may be viewed and downloaded from the following
URL address http://yosemite.epa.gov/sab/sabproduct.nsf/Web/ethics?OpenDocument.
    The approved policy under which the EPA SAB Office selects
subcommittees and reviews panels is described in the following
document: Overview of the Panel Formation Process at the Environmental
Protection Agency Science Advisory Board (EPA-SAB-EC-02-010), which is
posted on the SAB Web site at http://www.epa.gov/sab/pdf/ec02010.pdf.

    Dated: April 24, 2014.
 Thomas H. Brennan,
Deputy Director, Science Advisory Board Staff Office.
[FR Doc. 2014-09902 Filed 4-29-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 86, Number 185 (Tuesday, September 28, 2021)]
[Notices]
[Pages 53718-53722]
[FR Doc No: 2021-20969]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93102; File No. SR-OCC-2021-007]

Self-Regulatory Organizations; the Options Clearing Corporation;
Order Granting Approval of Proposed Rule Change Concerning the Options
Clearing Corporation's Governance Arrangements

September 22, 2021.

I. Introduction

    On July 30, 2021, the Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change SR-OCC-2021-007 (``Proposed Rule Change'')
pursuant to Section 19(b) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 \2\ thereunder to provide OCC's
Board of Directors (``Board'') with the discretion to elect either an
Executive Chairman or a Non-Executive Chairman to preside over the
Board, provide the Board and stockholders with the discretion to elect
a Management Director, clarify the respective authority and
responsibility of any Executive Chairman or Non-Executive Chairman, and
make other clarifying, conforming, and administrative changes to OCC's
rules.\3\ The Proposed Rule Change was published for public comment in
the Federal Register on August 11, 2021.\4\ The Commission has received
no comments regarding the Proposed Rule Change. This order approves the
Proposed Rule Change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Notice of Filing infra note 4, 86 FR 44105.
    \4\ Securities Exchange Act Release No. 92584 (Aug. 5, 2021), 86
FR 44105 (Aug. 11, 2021) (File No. SR-OCC-2021-007) (``Notice of
Filing'').
---------------------------------------------------------------------------

II. Background \5\
---------------------------------------------------------------------------

    \5\ Capitalized terms used but not defined herein have the
meanings specified in OCC's Rules and By-Laws, available at https://www.theocc.com/about/publications/bylaws.jsp.
---------------------------------------------------------------------------

    Article III, Section I of OCC's By-Laws currently requires that the
Board be composed of nine Member Directors,\6\ five Exchange
Directors,\7\ five Public Directors,\8\ and an Executive Chairman (who
also serves as a Management Director \9\). OCC's Executive Chairman is
responsible for managing the Board while also being involved with the
``day-to-day'' management decisions of OCC. By contrast, a ``Non-
Executive Chairman'' is typically not an employee of the company and
focuses solely on leading and supporting its board of directors.
---------------------------------------------------------------------------

    \6\ Member Directors include Clearing Members or representatives
of a Clearing Member. OCC endeavors to achieve balanced
representation among Clearing Members on the Board of Directors to
assure that (i) not all Member Directors are representatives of the
largest Clearing Member organizations based on the prior year's
volume, and (ii) the mix of Member Directors includes
representatives of Clearing Member organizations that are primarily
engaged in agency trading on behalf of retail customers or
individual investors. See Article III, Section 5 of the OCC By-Laws.
    \7\ Exchange Directors represent the equity exchanges that are
holders of Class B Common Stock of the OCC. Exchange Directors need
not be Clearing Members or be associated with a Clearing Member
organization. See Article III, Section 6 of the OCC By-Laws.
    \8\ Public Directors are independent directors who are not
affiliated with any national securities exchange or national
securities association or with any broker or dealer. See Article
III, Section 6A of the OCC By-Laws.
    \9\ Management Directors also serve as employees of OCC. See
Article III, Section 7 of the OCC By-Laws.
---------------------------------------------------------------------------

    As described in more detail below, OCC proposes to revise its
governing documents, including its By-Laws, Rules, Board of Directors
Charter and Corporate Governance Principles (``Board Charter''), Audit
Committee Charter, Compensation and Performance Committee Charter,
Governance and Nominating Committee Charter, Risk Committee Charter,
Technology Committee Charter (such committee charters collectively
being the ``Board Committee Charters''), and Amended and Restated
Stockholders Agreement (``Stockholders Agreement''), to give the Board
discretion to elect either an Executive or Non-Executive Chairman to
preside over the Board. The Proposed Rule Change would also provide the
Board and stockholders with discretion to elect Management Directors
from OCC's management, which would be necessary if OCC does not have an
Executive Chairman. OCC notes that the Proposed Rule Change would
provide clarity around the authority and responsibilities of an
Executive Chairman versus a Non-Executive Chairman.\10\ OCC also
proposes to make additional clarifying, conforming, and administrative
changes to the documents listed above. OCC believes that the Proposed
Rule Change would provide appropriate flexibility to the Board to
evaluate OCC's governance arrangements, including whether OCC should
have an Executive or Non-

Executive Chairman, and adjust the composition of the Board and
leadership structure more quickly in response to changing business
conditions and personnel and the knowledge, skills, and experience of
its various Board members and senior officers.\11\
---------------------------------------------------------------------------

    \10\ See Notice of Filing supra note 4, 86 FR 44106.
    \11\ See Notice of Filing supra note 4, 86 FR 44106-07.
---------------------------------------------------------------------------

    Proposed Changes Relating to the Chairman Role and
Responsibilities. Under OCC's current By-Laws, the individual elected
by the Board to be responsible for certain control functions of OCC and
to preside at all meetings of the Board and stockholders is defined as
the``Executive Chairman.'' \12\ OCC believes that as a result of this
specificity, the Board likely would not consider Non-Executive Chairman
candidates unless the By-Laws state explicitly that the Board has the
ability to do so.\13\ Therefore, OCC proposes to revise Article III,
Section 9 (currently Reserved) and Article IV, Sections 1 and 6 of its
By-Laws to give its Board the discretion to elect either an Executive
or Non-Executive Chairman. OCC believes that revising its By-Laws to
provide this discretion would increase the potential pool of qualified
candidates for the position and enable the Board to select the Chairman
with the most suitable experience and skill set for OCC at any given
time.\14\
---------------------------------------------------------------------------

    \12\ See Article IV, Section 6 of the OCC By-Laws.
    \13\ See Notice of Filing supra note 4, 86 FR 44107.
    \14\ Id.
---------------------------------------------------------------------------

    OCC also proposes to update Article III, Section 9 to provide that,
upon the nomination of the Governance and Nominating Committee, the
Board shall elect from among its members a Chairman of the Board (as
opposed to an Executive Chairman), and if the Chairman is elected from
among the employees of OCC, such Chairman would be an ``Executive
Chairman'' for purposes of OCC's By-Laws and Rules. OCC proposes to
revise Article I of its By-Laws to add a definition for the term
``Chairman,'' which would be defined to mean the individual elected by
the Board as the Chairman of the Board pursuant to Article III, Section
9 of the By-Laws and that may be, but would not be required to be, an
Executive Chairman.
    OCC also proposes to revise Article III, Section 9 of the By-Laws
to provide the Board with additional flexibility to define the
Chairman's role and responsibilities. The proposed language would be a
general statement that the Chairman would have powers and perform such
duties as the Board may designate.\15\ OCC asserts that the Proposed
Rule Change would provide appropriate flexibility for the Board to
assign or remove responsibilities of the Chairman based on whether such
Chairman is an Executive or Non-Executive Chairman and based upon the
needs of OCC at any given point in time.\16\
---------------------------------------------------------------------------

    \15\ The proposed language would replace Article IV, Section 6,
which currently states that the Executive Chairman is responsible
for certain control functions of OCC, including internal audit and
public affairs and government relations, and has supervision of the
officers and agents appointed by him.
    \16\ See Notice of Filing supra note 4, 86 FR 44107.
---------------------------------------------------------------------------

    OCC proposes to revise the following sections of its By-Laws so
that any Chairman (whether Executive or Non-Executive) would retain the
following authority and responsibility currently given to the Executive
Chairman: Article II, Sections 2 and 4 concerning the authority to call
and provide notice of meetings of OCC's stockholders; Article III,
Section 10 concerning the authority to receive notice of resignation of
a member of the Board; Article III, Section 14 concerning the authority
to call special meetings of the Board; Article III, Section 15
concerning the authority to exercise emergency powers and call special
meetings of the Board during such an emergency; Article IV, Sections 2,
3, 9 and 13 concerning the authority to appoint officers, fix the
salaries of any appointed officers, and remove such officers; Article
VIIB, Section 1, Interpretation and Policy .01 concerning the
responsibility to promptly provide Non-Equity Exchanges with
information the Chairman considers to be of competitive significance to
such Non-Equity Exchanges that was disclosed to Exchange Directors at
or in connection with any meeting or action of the Board or one of its
committees; Article IX, Section 12 concerning the authority to sign
certificates for shares of OCC; and Article IX, Section 14 concerning
the authority to suspend the rules of OCC in emergency circumstances.
OCC wants the Chairman, whether Executive or Non-Executive, to retain
these authorities and responsibilities which OCC believes relate to
governance matters appropriately assigned to any Chairman of the
Board.\17\
---------------------------------------------------------------------------

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

    The Proposed Rule Change would revise the following Rules so that
any Chairman (whether Executive or Non-Executive) would retain the
following authority and responsibility currently given to the Executive
Chairman: Rule 505 concerning the authority to extend settlement times
upon a determination that an emergency or force majeure condition
exists; Rule 609A concerning the authority to waive margin deposits in
limited circumstances; Rule 1006(f) concerning the authority to use
Clearing Fund assets to borrow or otherwise obtain funds from third
parties; Rule 1104, Interpretation and Policy .02 concerning the
authority to elect to use one or more private auctions to liquidate
collateral, open positions and/or exercised/matured contracts of a
suspended Clearing Member; and Rule 1110 concerning the authority to
appoint an appeals panel to considered and decided appeals by suspended
Clearing Members. OCC believes that updating these Rules to allow the
Chairman to retain these critical responsibilities would help to ensure
the efficient management and operation of OCC in emergency or exigent
circumstances where other authorized officers are absent or otherwise
unable to perform their duties.\18\
---------------------------------------------------------------------------

    \18\ See Notice of Filing supra note 4, 86 FR 44108.
---------------------------------------------------------------------------

    Proposed Changes Relating to Responsibilities of Other Senior
Officers. OCC proposes to make conforming changes to Article IV,
Section 8 of the By-Laws to clarify that OCC's Chief Executive Officer
(``CEO'') would be responsible for all aspects of OCC's business and
for its day-to-day affairs, except for those that may report directly
to the Chairman, as determined by the Board.
    OCC proposes to revise several By-Law sections to transfer certain
responsibilities currently belonging to the Executive Chairman to the
CEO. OCC proposes to revise Article VI, Section 11 of the By-Laws to
assign to the CEO the responsibility for participating in the
Securities Committee and panels thereof for purposes of contract
adjustments. OCC also proposes similar changes to its By-Laws
concerning the fixing of: (i) Underlying interest values of binary and
range options (Article XIV, Section 5), (ii) exercise settlement
amounts of yield-based Treasury options (Article XVI, Section 4), (iii)
exercise settlement amounts of cash-settled securities options other
than OTC index options (Article XVII, Section 4), (iv) exercise
settlement amounts of cash-settled foreign currency options in
circumstances where certain prices or values are determined to be
unavailable or inaccurate for the contracts in question (Article XXII,
Section 4), and (v) the Closing Price for BOUNDs contracts (Article
XXIV). OCC believes that these responsibilities are best assigned to
the CEO familiar with OCC's day-to-day operations, rather than to a

Chairman who may or may not possess that familiarity.\19\
---------------------------------------------------------------------------

    \19\ See Notice of Filing supra note 4, 86 FR 44107.
---------------------------------------------------------------------------

    OCC also proposes conforming changes to its Rules concerning the
following responsibilities, which would remain with an Executive
Chairman (as well as the CEO and the Chief Operating Officer) if one
has been elected by the Board: Rule 1104(b) concerning the authority to
delay the immediate liquidation of a suspended Clearing Member's margin
deposits and to use such deposits to borrow or otherwise obtain funds
from third parties; Rule 1106(e) concerning the authority to determine
not to close out a suspended Clearing Member's unsegregated long
positions or short positions in options or BOUNDs, or long or short
positions in futures; and Rule 1106(f) concerning the authority to
execute hedging transactions to reduce the risk associated with any
collateral or positions not immediately liquidated or closed out
pursuant to Rules 1104(b) and 1006(e). OCC believes that these
responsibilities do not rise to the level of emergency or exigent
circumstances, and should therefore remain with senior executives more
closely familiar with the day-to-day operations of OCC. As a result,
OCC would not substantively change the requirements in these existing
rules.\20\
---------------------------------------------------------------------------

    \20\ See Notice of Filing supra note 4, 86 FR 44108.
---------------------------------------------------------------------------

    Proposed Changes Relating to OCC's Board and Committees. OCC
proposes to revise Article III, Section I of the By-Laws to provide
that the Board may have no less than five Public Directors, as opposed
to the current requirement that OCC have exactly five Public Directors.
The Proposed Rule Change would allow OCC to have a sixth Public
Director serving on its Board if there is a Public Director serving as
Chairman.\21\ The Chairman would preside at all meetings of the Board
of Directors, be responsible for carrying out the policies of the
Board, have general supervision over the Board and its activities, and
provide overall leadership to the Board of Directors.
---------------------------------------------------------------------------

    \21\ OCC notes that the proposed change, along with the
potential election of a Management Director that is not an Executive
Chairman (discussed below), could result in the Board having up to
21 total directors as opposed to its current 20 directors. OCC also
notes that if the Board elects a Non-Executive Chairman that is
determined to be an independent Public Director, such a Chairman
would be eligible to serve as the chair of any of OCC's Board
Committees pursuant to the requirements of each Board Committee
Charter. OCC does not believe that the potential addition of a
Public Director to its Board, increasing the overall Board size by
one director, would materially impact the composition,
representation, or decision-making process of the Board. See Notice
of Filing supra note 4, 86 FR 44107.
---------------------------------------------------------------------------

    OCC proposes to revise Article VIIA, Section 3 of the By-Laws and
Sections 2 and 3 of the Stockholder Agreement to provide the Board and
stockholders with the discretion to elect a Management Director if the
Board has elected a Non-Executive Chairman. OCC also proposes to revise
Article III, Section 12 of the By-Laws to reflect that any vacancy in
the position of Management Director may be filled by the Board until
the next meeting of the stockholders. In addition, OCC proposes to
revise Article IV, Sections 1 and 7 of the By-Laws to relocate certain
provisions concerning the election of the Vice Chairman of the Board.
    OCC proposes to revise Article III, Section 4 of the By-Laws to
remove specific references to various Board committees and their
compositions. OCC notes that each of the Board Committee Charters are
filed with the Commission as rules of OCC, and as a result, this
information is unnecessarily duplicated in OCC's By-Laws.\22\ OCC would
relocate from the By-Laws to each of the Board Committee Charters the
requirement that committee members are selected by the Board from among
the directors recommended by the then-constituted Governance and
Nominating Committee after consultation with the Chairman and serve at
the pleasure of the Board.
---------------------------------------------------------------------------

    \22\ See Notice of Filing supra note 4, 86 FR 44108.
---------------------------------------------------------------------------

    OCC proposes to make conforming changes to its Board Charter.
First, OCC would remove the qualifier ``Executive'' before most
occurrences of ``Executive Chairman'' throughout the charter. OCC would
revise the Board Charter to clarify that those provisions relating to
management structure, evaluation, and succession would be applicable
only to any Executive Chairman. The Proposed Rule Change would clarify
that, with respect to employee compensation, the Board would be
responsible for the compensation, incentive, and benefit programs and
evaluating the performance of any Executive Chairman. OCC also proposes
to revise the Board Charter to reflect that the election of a
Management Director would be at the discretion of the Board and provide
that a Management Director would no longer be eligible to serve if he
or she ceases to hold a senior officer position at OCC, by virtue of
which he or she was elected as a Management Director. OCC also proposes
to revise the Board Charter to include the Regulatory Committee in the
list of charters required to be established by the Board.\23\ In
addition, OCC proposes to revise its Board Charter to remove specific
requirements around the composition of the Governance and Nominating
Committee, which would align with proposed changes to the Governance
and Nominating Committee.
---------------------------------------------------------------------------

    \23\ See Securities Exchange Act Release No. 87577 (November 20,
2019), 84 FR 65202 (November 26, 2019) (SR-OCC-2019-008).
---------------------------------------------------------------------------

    OCC proposes changes to its Audit Committee Charter regarding the
functional and administrative reporting lines for the Chief Audit
Executive (``CAE'') and Chief Compliance Officer (``CCO'') and the
review and oversight of OCC's Internal Audit and Compliance functions
to accommodate the proposed changes to OCC's By-Laws. OCC would revise
the Audit Committee Charter to state that the CAE would continue to
report functionally to the Audit Committee and report administratively
to a member of the Management Committee designated by the Audit
Committee. The proposed rule change is intended to provide appropriate
flexibility for the administrative reporting line of the CAE and in the
officers that the committee may consult in their review of the Internal
Audit function.\24\ OCC also proposes similar changes to the functional
and administrative reporting lines of the CCO, who currently reports
functionally to the Audit Committee and administratively to the CEO,
and to the consultation requirements in reviewing the performance of
the CCO and Compliance Department. OCC believes that these changes
would provide for a consistent approach and similar flexibility for the
Audit Committee's oversight of OCC's Compliance function.\25\
---------------------------------------------------------------------------

    \24\ See Notice of Filing supra note 4, 86 FR 44109.
    \25\ Id.
---------------------------------------------------------------------------

    OCC proposes to revise its Compensation and Performance Committee
Charter to conform to the proposed changes to OCC's By-Laws.
Specifically, the proposed revisions would reflect that the committee's
responsibilities for reviewing the performance and compensation of
OCC's management team, including the executive officers of OCC, would
extend to any Executive Chairman of OCC.
    OCC proposes to revise its Governance and Nominating Committee
Charter to conform to the proposed changes to OCC's By-Laws by
clarifying that the Governance and Nominating Committee would consult
with any Chairman in its oversight and advising responsibilities to the
Board.

    OCC proposes changes to its Risk Committee Charter regarding the
functional and administrative reporting lines for the Chief Risk
Officer (``CRO''). Currently, the Risk Committee Charter provides that
the CRO reports functionally to the Risk Committee and administratively
to the CEO and that the Risk Committee consults with the CEO and other
committees as appropriate in reviewing the CRO's performance. OCC
proposes to revise the Risk Committee Charter to state that the CRO
would continue to report functionally to the Risk Committee and would
report administratively to a member of the Management Committee
designated by the Committee. The proposed change is intended to provide
flexibility for the administrative reporting line of the CRO and the
particular officers and committees the Risk Committee may consult in
their review of the CRO's performance depending on the Board's
allocation of responsibilities at a given point in time.\26\
---------------------------------------------------------------------------

    \26\ Id.
---------------------------------------------------------------------------

    Finally, OCC proposes to revise its Technology Committee Charter to
require that the chair of the committee be a Public Director. The
proposed change would align the Technology Committee Charter with OCC's
other Board Committee Charters, which also require that a Public
Director serves as committee chair. OCC notes that the proposed change
would not result in any practical change to the Technology Committee as
it is currently chaired by a Public Director.\27\
---------------------------------------------------------------------------

    \27\ Id.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Exchange Act directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Exchange Act and the rules and regulations
thereunder applicable to such organization.\28\ After carefully
considering the Proposed Rule Change, the Commission finds that the
proposal is consistent with the requirements of the Exchange Act and
the rules and regulations thereunder applicable to OCC. More
specifically, the Commission finds that the proposal is consistent with
Section 17A(b)(3)(A) of the Exchange Act,\29\ and Rule 17Ad-22(e)(2)
\30\ thereunder, as described in detail below.
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78s(b)(2)(C).
    \29\ 15 U.S.C. 78q-1(b)(3)(A).
    \30\ 17 CFR 240.17Ad-22(e)(2).
---------------------------------------------------------------------------

A. Consistency With Section 17A(b)(3)(A) of the Exchange Act

    Section 17A(b)(3)(A) of the Exchange Act requires, among other
things, that a clearing agency is so organized and has the capacity to
be able to facilitate the prompt and accurate clearance and settlement
of securities transactions and derivative agreements, contracts, and
transactions for which it is responsible.\31\
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78q-1(b)(3)(A).
---------------------------------------------------------------------------

    Based on its review of the record, and for the reasons described
below, the Commission believes that the proposed changes to revise
OCC's governing documents to provide Board discretion to elect either
an Executive or Non-Executive Chairman is consistent with being
organized to facilitate the prompt and accurate clearance and
settlement of securities transactions and derivative agreements,
contracts, and transactions for which OCC is responsible. By providing
the Board with discretion to choose a Chairman from a broader set of
candidates, the Board would gain greater flexibility to select someone
with the best and most appropriate experience for the role at any given
point in time, whether as part of OCC's day-to-day operations or
otherwise. The proposed changes allow the Board to reassign certain
day-to-day responsibilities to other senior officers, depending on
whether the Board elects a Chairman that is an Executive Chairman.
Similarly, the proposed changes to provide the Board with greater
flexibility to elect an additional Public Director under certain
circumstances and to preserve the authority of the Board and
stockholders to elect a Management Director are consistent with being
organized to facilitate prompt and accurate clearance and settlement
practices. This greater degree of flexibility would leave OCC better
prepared to adjust its Board composition to changing market conditions
and emerging business concerns, so that it can continue to successfully
facilitate the prompt and accurate clearing and settlement of
securities transactions and other transactions for which OCC is
responsible.
    OCC also proposes to change to its Audit and Risk Committee
Charters to adjust the administrative reporting lines for the CAE, CCO,
and CRO so that they each report administratively to a member of the
Management Committee designated by the Board Committee to which they
report functionally. These proposed changes are consistent with
facilitating prompt and accurate clearing and settlement practices, as
the changes would provide OCC with the flexilibity to adjust these
administrative reporting lines depending on the existing skill sets of
the officers serving on OCC's Management Committee. This could in turn
strengthen OCC's administrative review processes and ensure greater
accountability from the CAE, CCO, and CRO roles, which would support
the facilitation of prompt and accurate clearing and settlement of
transactions for which OCC is responsible.
    The Commission believes, therefore, that the proposal to provide
OCC's Board with the discretion to elect either an Executive Chairman
or a Non-Executive Chairman, provide the Board and stockholders with
the discretion to elect a Management Director, clarify the respective
authority and responsibility of any Executive Chairman or Non-Executive
Chairman, and make other clarifying, conforming, and administrative
changes to OCC's rules is consistent with the requirements of Section
17A(b)(3)(A) of the Exchange Act.\32\
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78q-1(b)(3)(A).
---------------------------------------------------------------------------

B. Consistency With Rule 17Ad-22(e)(2) Under the Exchange Act

    Rule 17Ad-22(e)(2)(i), (iv), (v), and (vi) under the Exchange Act
require covered clearing agencies to have governance arrangements that
are clear and transparent, establish that the board of directors and
senior management have appropriate experience and skills to discharge
their duties and responsibilities, specify clear and direct lines of
responsibility, and consider the interests of participants' customers,
securities issues and holders, and other relevant stakeholders of the
covered clearing agency.\33\
---------------------------------------------------------------------------

    \33\ 17 CFR 240.17Ad-22(e)(2)(i), (iv), (v), and (vi).
---------------------------------------------------------------------------

    Based on its review of the record, and for the reasons described
below, the Commission believes that the proposed changes described
above are consistent with Rule 17Ad-22(e)(2)(i) under the Exchange Act,
in that the Proposed Rule Change increases the clarity and transparency
of OCC's governance arrangements. In recognizing that there may be a
number of ways to address compliance with Rule 17Ad-22(e)(2), the
Commission has stated that a covered clearing agency generally should
consider, when establishing and maintaining policies and procedures
that address governance, whether the roles and responsibilities of
management have been clearly

specified.\34\ The proposal to update OCC's By-Laws to state explicitly
that the Board may choose either a Non-Executive Chairman or an
Executive Chairman rectifies current concerns that the Board likely
would not consider Non-Executive Chairman candidates if the ability to
do so were not already in the By-Laws.\35\ The Proposed Rule Change
clarifies that the Board need not disregard non-Executive Chairman
candidates, and that it actually has the option to elect either an
Executive Chairman who is closely involved in the day-to-day
responsibilities of running OCC, or a Non-Executive Chairman primarily
focused on the running of the Board. Additionally, OCC's proposal to
relocate from the By-Laws to each of the Board Committee Charters the
requirement that committee members are selected by the Board from among
the directors recommended by the then-constituted GNC after
consultation with the Chairman and serve at the pleasure of the Board
is consistent with increasing the clarity and transparency of OCC's
governance arrangements, as it would eliminate unnecessary duplication
in the governing documents, since OCC already files each of the Board
Committee Charters as OCC rules with the Commission. These proposed
changes are thus consistent with Rule 17Ad-22(e)(2)(i).
---------------------------------------------------------------------------

    \34\ See Securities Exchange Act Release 78961, 81 FR 70786,
70806 (Oct. 13, 2016) (File No. S7-03-14).
    \35\ See supra note 4 at 44107.
---------------------------------------------------------------------------

    The Commission believes that based on its review of the record and
for the reasons described below, the proposed changes are consistent
with Rule 17Ad-22(e)(2)(iv) under the Exchange Act, in that they help
to ensure that the Board and senior management have the appropriate
experience and skills to discharge their duties and responsibilities.
Specifically, OCC proposed changes to its By-Laws to ensure that the
Board and stockholders retain the discretion to elect a Management
Director to its Board if the Chairman is a Non-Executive Chairman, as
well as to ensure that the Board has the discretion to elect an
additional Public Director to its Board if the elected Chairman is a
Public Director. These changes would provide the Board with the ability
to increase the size of the Board by one Director to ensure that it
continues to have members with the appropriate skills and incentives to
fulfill the Board's multiple roles, by either replacing or
supplementing the elected Chairman's skills and background depending on
his or her competing demands.
    The Commission believes that the Proposed Rule Change is also
consistent with Rule 17Ad-22(e)(2)(v) under the Exchange Act, in that
the Proposed Rule Change does provide clear and direct lines of
responsibility. The Commission has previously stated that covered
clearing agencies should have policies and procedures that generally
entail documenting the responsibilities of the board of directors and
senior management, which could help foster accountability and
complement requirements that address the qualifications of the board
and management. This requires the covered clearing agency to further
specify the roles that each individual would fulfill and the lines of
responsibility that would exist within the board and within
management.\36\ In the current instance, the Proposed Rule Change
clarifies which authorities and responsibilities remain with the
Chairman, whether Executive or Non-Executive, and which authorities and
responsibilities are transferred to other senior officers such as the
CEO or COO if the elected Chairman is Non-Executive.
---------------------------------------------------------------------------

    \36\ See supra note 34 at 70804.
---------------------------------------------------------------------------

    Finally, the Commission believes that the Proposed Rule Change is
also consistent with Rule 17Ad-22(e)(2)(vi) under the Exchange Act, in
that the Proposed Rule Change provides for governance arrangements that
consider the interests of participants' customers, securities issues
and holders, and other relevant stakeholders of the covered clearing
agency. In recognizing that there may be a number of ways to address
compliance with Rule 17Ad-22(e)(2), the Commission has stated that a
covered clearing agency generally should consider, when establishing
and maintaining policies and procedures that address governance,
whether the major decisions of the covered clearing agency reflect
appropriately the legitimate interests of its direct and indirect
participants and other relevant stakeholders.\37\ OCC's proposed
changes to its Technology Charter to require an independent director as
the chair of the committee would help to ensure that the interests of
direct and indirect participants are considered as part of Technology
Committee determinations, and also makes the Technology Charter
consistent with the other Board Committee Charters.
---------------------------------------------------------------------------

    \37\ Id. at 70806-07.
---------------------------------------------------------------------------

    The Commission believes, therefore, that the proposal to provide
OCC's Board with the discretion to elect either an Executive Chairman
or a Non-Executive Chairman, provide the Board and stockholders with
the discretion to elect a Management Director, clarify the respective
authority and responsibility of any Executive Chairman or Non-Executive
Chairman, and make other clarifying, conforming, and administrative
changes to OCC's rules is consistent with the requirements of Rule
17Ad-22(e)(2)(i), (iv), (v), and (vi) under the Exchange Act.\38\
---------------------------------------------------------------------------

    \38\ 17 CFR 240.17Ad-22(e)(2)(i), (iv), (v), and (vi).
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
Proposed Rule Change is consistent with the requirements of the
Exchange Act, and in particular, the requirements of Section 17A of the
Exchange Act \39\ and the rules and regulations thereunder.
---------------------------------------------------------------------------

    \39\ In approving this Proposed Rule Change, the Commission has
considered the proposed rules' impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\40\ that the Proposed Rule Change (SR-OCC-2021-007) be,
and hereby is, approved.
---------------------------------------------------------------------------

    \40\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\41\
---------------------------------------------------------------------------

    \41\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-20969 Filed 9-27-21; 8:45 am]
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[Federal Register: February 26, 2009 (Volume 74, Number 37)]
[Rules and Regulations]
[Page 8735-8737]
[DOCID:fr26fe09-13]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2006-24145; Directorate Identifier 2006-NE-06-AD;
Amendment 39-15823; AD 2009-04-17]
RIN 2120-AA64

Airworthiness Directives; General Electric Company CF6-45 and
CF6-50 Series Turbofan Engines

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
General Electric Company (GE) CF6-45 and CF6-50 series turbofan
engines. This AD requires replacing certain forward and aft
centerbodies of the long fixed core exhaust nozzle (LFCEN) assembly.
This AD results from the engine manufacturer issuing new service
information. We are issuing this AD to prevent the forward and aft
centerbody of the LFCEN assembly from separating due to high imbalance
engine conditions, leading to damage to the airplane.

DATES: This AD becomes effective April 2, 2009. The Director of the
Federal Register approved the incorporation by reference of certain
publications listed in the regulations as of April 2, 2009.

ADDRESSES: You can get the service information identified in this AD
from General Electric Company via GE-Aviation, Attn: Distributions, 111
Merchant St., Room 230, Cincinnati, Ohio 45246, telephone (513) 552-
3272; fax<PHONE_NUMBER>.
    The Docket Operations office is located at the Docket Management
Facility, U.S. Department of Transportation, 1200 New Jersey Avenue,
SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-
0001.

FOR FURTHER INFORMATION CONTACT: Robert Green, Aerospace Engineer,
Engine Certification Office, FAA, Engine & Propeller Directorate, 12
New England Executive Park, Burlington, MA 01803; e-mail:
<EMAIL_ADDRESS>telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FAA proposed to amend 14 CFR part 39
with a proposed AD. The proposed AD applies to (GE) CF6-45 and CF6-50
series turbofan engines. We published the proposed AD in the Federal
Register on January 2, 2008, (73 FR 77). That action proposed to
require replacing the centerbodies with centerbodies that were modified
using the Accomplishment Instructions, Section 3, of GE SB No. CF6-50
S/B 78-0244, dated July 30, 2007, within 42 months of the effective
date of the proposed AD.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the regulatory evaluation,
any comments received, and other information. The street address for
the Docket Operations office (telephone<PHONE_NUMBER>) is provided in
the ADDRESSES section. Comments will be available in the AD docket
shortly after receipt.

Comments

    We provided the public the opportunity to participate in the

development of this AD. We have considered the comments received.

Requests To Allow Credit for Rework Performed Using GE Service Bulletin
CF6-50 S/B 78-0242

    Two commenters, Atlas Air and Evergreen International Airlines,
asked us to allow credit for rework performed using GE Service Bulletin
(SB) CF6-50 S/B 78-0242, dated September 26, 2005. The commenters state
the original issue and later revision of GE SB CF6-50 S/B 78-0244 state
in Section 1, Planning Information, that forward and aft centerbody
assemblies reworked in accordance with GE SB CF6-50 S/B 78-0242, meet
the requirement of the GE SB.
    We agree. The rework defined by GE SB CF6-50 S/B 78-0242 meets the
requirements of GE SB CF6-50 S/B 78-0244, Revision 1. Also, there might
be forward and aft centerbody assemblies that have been reworked using
the original issue of GE SB CF6-50 S/B 78-0244, which is acceptable. We
have added references to GE SB CF6-50 S/B 78-0244, dated July 30, 2007,
and GE SB CF6-50 S/B 78-0242, dated September 26, 2005, to paragraph
(f) of this AD.

Request To Add GE SB CF6-50 S/B 78-0244, Revision 1, Dated March 13,
2008 to the AD Compliance Section

    Two commenters, GE Aviation and Boeing Commercial Airplane
Services, ask us to reference SB CF6-50 S/B 78-0244, Revision 1, dated
March 13, 2008, in the compliance section of the proposed AD. The
commenters state that operators cannot get the rivets identified in
Section 2. Material Information, paragraph A. (1) of the original issue
of GE SB CF6-50 S/B 78-0244. Those rivets are part numbers (P/Ns)
NAS1398M3-2 and NAS 1398M3-3. GE identified alternative rivets P/Ns
NAS13984-2 and NAS13984-3 in SB CF6-50 S/B 78-0244, Revision 1, dated
March 13, 2008.
    We agree. We have changed GE SB CF6-50 S/B 78-0244, dated July 30,
2007, to GE SB CF6-50 S/B 78-0244, Revision 1, dated March 13, 2008, in
the regulatory text.

Recommendation To Use Rivet P/N NAS9307 as an Alternative to P/Ns
NAS13984-2 and NAS13984-3

    One commenter, Nordam Prism, recommends we allow using alternative
rivets, P/N NAS9307, for installing the forward centerbody forward
doubler. The commenter suggests the P/N NAS9307 rivet is more reliable
than the specified P/N NAS1398 rivet. The commenter states the P/N
NAS9307 rivet locking collar is designed as a positive security device
that forms the rivet sleeve into the locking stem, thereby promoting
joint integrity while in service. The commenter states the P/N NAS1398
rivet doesn't offer this feature, and the lock has a tendency to
release in service. The commenter further notes the P/N NAS9307 rivet
design provides a more consistent installation with visual confirmation
of an acceptable mechanical fit. Previous experience with P/N NAS1398
rivets would often result in inspectors not accepting rivet
installation due to misplaced locking collars. The resulting removal
increased the tendency for an oversized rivet hole. In this particular
GE SB CF6-50 S/B 78-0244 application, there exists no tolerance for
oversizing the hole and installing a larger rivet. The first article
assembly effectively used the P/N NAS9307 rivet in this application.
    We don't agree. GE states the P/N NAS9307 rivet doesn't offer a
0.094-inch diameter option that is consistent with the existing repair.
The proposed P/N NAS9307M-4-0X rivet size (0.125-inch diameter) would
work in this configuration, but the repair area might not accommodate
the next higher, P/N NAS9307M-5-0X rivet size (0.165-inch diameter),
precluding oversized rivet holes or future repairs. GE further notes
the spindle material of the P/N NAS9307 rivet might be made of PH15-7
corrosion resistant steel. The P/N PH15-7 material doesn't offer the
same corrosion resistance in an exhaust environment as the A386 spindle
material used in the P/N NAS1398 rivets. We didn't change the
Regulatory text.

Request To Remove the KC-10A Airplane From the ``Used on'' Section of
Paragraph (c) of the Proposed AD

    One commenter, Boeing Commercial Airplane Services, asks us to
remove the reference to the KC-10A airplane from the ``used on but not
limited to'' sentence in paragraph (c) of the proposed AD. Boeing
states the KC-10A doesn't use the LFCEN configuration.
    We agree. We supply the ``used on, but not limited to'' list of
airplanes in paragraph (c) of the proposed AD to aid operators and
users in identifying if their airplane might use the affected engines.
Since the list is for information only, we are not expanding the scope
of the proposed AD by adding or removing any airframe. We removed the
KC-10A from the ``installed on but not limited to'' sentence in
paragraph (c) of this AD.

Conclusion

    We have carefully reviewed the available data, including the
comments received, and determined that air safety and the public
interest require adopting the AD with the changes described previously.
We have determined that these changes will neither increase the
economic burden on any operator nor increase the scope of the AD.

Costs of Compliance

    We estimate that this AD will affect 379 GE CF6-45 and CF6-50
series turbofan engines installed on airplanes of U.S. registry. We
also estimate that it will take about 44 work hours per engine to
perform the actions, and that the average labor rate is $80 per work
hour. Required parts would cost about $11,000 per engine. Based on
these figures, we estimate the total cost of this AD to U.S. operators
to be $2,802,360.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, Section 106, describes the
authority of the FAA Administrator. Subtitle VII, Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701, ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We have determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    (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) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities

under the criteria of the Regulatory Flexibility Act.
    We prepared a summary of the costs to comply with this AD and
placed it in the AD Docket. You may get a copy of this summary at the
address listed under ADDRESSES.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Safety.

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the Federal Aviation Administration amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive:

2009-04-17 General Electric Company: Amendment 39-15823. Docket No.
FAA-2006-24145; Directorate Identifier 2006-NE-06-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective April 2,
2009.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to General Electric Company (GE) CF6-45A,
CF6-45A2, CF6-50A, CF6-50C, CF6-50CA, CF6-50C1, CF6-50C2, CF6-50C2B,
CF6-50C2D, CF6-50E, CF6-50E1, CF6-50E2, and CF6-50E2B series
turbofan engines with a long fixed core exhaust nozzle (LFCEN)
assembly forward centerbody, part number (P/N) 1313M55G01 or G02, P/
N 9076M28G09 or G10, and aft centerbody P/N 1313M56G01 or
9076M46G05, installed. These engines are installed on, but not
limited to, Airbus A300 series, Boeing 747 series, McDonnell Douglas
DC-10 series, and DC-10-30F (KDC-10) airplanes.

Unsafe Condition

    (d) This AD results from reports of separation of LFCEN assembly
forward and aft centerbodies due to high imbalance engine
conditions. This AD results from the GE issuing new service
information. We are issuing this AD to prevent the forward and aft
centerbody of the LFCEN assembly from separating due to high
imbalance engine conditions, leading to damage to the airplane.

Compliance

    (e) You are responsible for having the actions required by this
AD performed within 42 months after the effective date of this AD,
unless the actions have already been done.
    (f) Replace the forward centerbody, P/N 1313M55G01 or G02, P/N
9076M28G09 or G10, and aft centerbody, P/N 1313M56G01 or 9076M46G05
with a forward and aft centerbody that have been modified using with
the Accomplishment Instructions, Section 3, of GE Service Bulletin
No. CF6-50 S/B 78-0244, Revision 1, dated March 13, 2008, CF6-50 S/B
78-0244, dated July 30, 2007, or CF6-50 S/B 78-0242, dated September
26, 2005.

Alternative Methods of Compliance

    (g) The Manager, Engine Certification Office, has the authority
to approve alternative methods of compliance for this AD if
requested using the procedures found in 14 CFR 39.19.

Related Information

    (h) Contact Robert Green, Aerospace Engineer, Engine
Certification Office, FAA, Engine & Propeller Directorate, 12 New
England Executive Park, Burlington, MA 01803; e-mail:
<EMAIL_ADDRESS>telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>,
for more information about this AD.

Material Incorporated by Reference

    (i) None.

    Issued in Burlington, Massachusetts, on February 12, 2009.
Francis A. Favara,
Manager, Engine and Propeller Directorate, Aircraft Certification
Service.
[FR Doc. E9-3615 Filed 2-25-09; 8:45 am]

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