[Federal Register Volume 79, Number 127 (Wednesday, July 2, 2014)]
[Notices]
[Pages 37842-37843]
[FR Doc No: 2014-15570]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2002-11714; FMCSA-2003-14223; FMCSA-2006-24015;
FMCSA-2006-24783]

Qualification of Drivers; Exemption Applications; Vision

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

ACTION: Notice of renewal of exemptions; request for comments.

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SUMMARY: FMCSA announces its decision to renew the exemptions from the
vision requirement in the Federal Motor Carrier Safety Regulations for
4 individuals. FMCSA has statutory authority to exempt individuals from
the vision requirement if the exemptions granted will not compromise
safety. The Agency has concluded that granting these exemption renewals
will provide a level of safety that is equivalent to or greater than
the level of safety maintained without the exemptions for these
commercial motor vehicle (CMV) drivers.

DATES: This decision is effective August 1, 2014. Comments must be
received on or before August 1, 2014.

ADDRESSES: You may submit comments bearing the Federal Docket
Management System (FDMS) numbers: Docket No. [Docket No. FMCSA-2002-
11714; FMCSA-2003-14223; FMCSA-2006-24015; FMCSA-2006-24783], using any
of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the on-line instructions for submitting
comments.
     Mail: Docket Management Facility; U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and
5 p.m., Monday through Friday, except Federal Holidays.
     Fax: 1-202-493-2251.
    Instructions: Each submission must include the Agency name and the
docket number for this notice. Note that DOT posts all comments
received without change to http://www.regulations.gov, including any
personal information included in a comment. Please see the Privacy Act
heading below.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov at any time or Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The Federal Docket Management System (FDMS) is
available 24 hours each day, 365 days each year. If you want
acknowledgment that we received your comments, please include a self-
addressed, stamped envelope or postcard or print the acknowledgement
page that appears after submitting comments on-line.
    Privacy Act: Anyone may search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or of the person signing the comment, if
submitted on behalf of an association, business, labor union, etc.).
You may review DOT's Privacy Act Statement for the Federal Docket
Management System (FDMS) published in the Federal Register on January
17, 2008 (73 FR 3316).

FOR FURTHER INFORMATION CONTACT: Elaine M. Papp, Chief, Medical
Programs Division,<PHONE_NUMBER><EMAIL_ADDRESS>FMCSA,
Department of Transportation, 1200 New Jersey Avenue SE., Room W64-224,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.
Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Background

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may renew an exemption
from the vision requirements in 49 CFR 391.41(b)(10), which applies to
drivers of CMVs in interstate commerce, for a two-year period if it
finds ``such exemption would likely achieve a level of safety that is
equivalent to or greater than the level that would be achieved absent
such exemption.'' The procedures for requesting an exemption (including
renewals) are set out in 49 CFR part 381.

Exemption Decision

    This notice addresses 4 individuals who have requested renewal of
their exemptions in accordance with FMCSA procedures. FMCSA has
evaluated these 4 applications for renewal on their merits and decided
to extend each exemption for a renewable two-year period. They are:

Ronald B. Brown (ME), Trixie L. Brown (IN), Brian G. Hagen (IL), Barney
J. Wade (MS).

    The exemptions are extended subject to the following conditions:
(1) That each individual has a physical examination every year (a) by
an ophthalmologist or optometrist who attests that the vision in the
better eye continues to meet the requirements in 49 CFR 391.41(b)(10),
and (b) by a medical examiner who attests that the individual is
otherwise physically qualified under 49 CFR 391.41; (2) that each
individual provides a copy of the ophthalmologist's or optometrist's
report to the medical examiner at the time of the annual medical
examination; and (3) that each individual provide a copy of the annual
medical certification to the employer for retention in the driver's
qualification file and retains a copy of the certification on his/her
person while driving for presentation to a duly authorized Federal,
State, or local enforcement official. Each exemption will be valid for
two years unless rescinded earlier by FMCSA. The

exemption will be rescinded if: (1) The person fails to comply with the
terms and conditions of the exemption; (2) the exemption has resulted
in a lower level of safety than was maintained before it was granted;
or (3) continuation of the exemption would not be consistent with the
goals and objectives of 49 U.S.C. 31136(e) and 31315.

Basis for Renewing Exemptions

    Under 49 U.S.C. 31315(b)(1), an exemption may be granted for no
longer than two years from its approval date and may be renewed upon
application for additional two year periods. In accordance with 49
U.S.C. 31136(e) and 31315, each of the 4 applicants has satisfied the
entry conditions for obtaining an exemption from the vision
requirements (67 FR 15662; 67 FR 37907; 68 FR 10302; 68 FR 19596; 69 FR
26921; 70 FR 44946; 70 FR 74103; 71 FR 14568; 71 FR 27033; 71 FR 30228;
71 FR 32184; 71 FR 41311; 73 FR 36955; 73 FR 42403; 75 FR 36778; 75 FR
38602; 77 FR 40946). Each of these 4 applicants has requested renewal
of the exemption and has submitted evidence showing that the vision in
the better eye continues to meet the requirement specified at 49 CFR
391.41(b)(10) and that the vision impairment is stable. In addition, a
review of each record of safety while driving with the respective
vision deficiencies over the past two years indicates each applicant
continues to meet the vision exemption requirements. These factors
provide an adequate basis for predicting each driver's ability to
continue to drive safely in interstate commerce. Therefore, FMCSA
concludes that extending the exemption for each renewal applicant for a
period of two years is likely to achieve a level of safety equal to
that existing without the exemption.

Request for Comments

    FMCSA will review comments received at any time concerning a
particular driver's safety record and determine if the continuation of
the exemption is consistent with the requirements at 49 U.S.C. 31136(e)
and 31315. However, FMCSA requests that interested parties with
specific data concerning the safety records of these drivers submit
comments by August 1, 2014.
    FMCSA believes that the requirements for a renewal of an exemption
under 49 U.S.C. 31136(e) and 31315 can be satisfied by initially
granting the renewal and then requesting and evaluating, if needed,
subsequent comments submitted by interested parties. As indicated
above, the Agency previously published notices of final disposition
announcing its decision to exempt these 4 individuals from the vision
requirement in 49 CFR 391.41(b)(10). The final decision to grant an
exemption to each of these individuals was made on the merits of each
case and made only after careful consideration of the comments received
to its notices of applications. The notices of applications stated in
detail the qualifications, experience, and medical condition of each
applicant for an exemption from the vision requirements. That
information is available by consulting the above cited Federal Register
publications.
    Interested parties or organizations possessing information that
would otherwise show that any, or all, of these drivers are not
currently achieving the statutory level of safety should immediately
notify FMCSA. The Agency will evaluate any adverse evidence submitted
and, if safety is being compromised or if continuation of the exemption
would not be consistent with the goals and objectives of 49 U.S.C.
31136(e) and 31315, FMCSA will take immediate steps to revoke the
exemption of a driver.

Submitting Comments

    You may submit your comments and material online or by fax, mail,
or hand delivery, but please use only one of these means. FMCSA
recommends that you include your name and a mailing address, an email
address, or a phone number in the body of your document so that FMCSA
can contact you if there are questions regarding your submission.
    To submit your comment online, go to http://www.regulations.gov and
in the search box insert the docket numbers FMCSA-2002-11714; FMCSA-
2003-14223; FMCSA-2006-24015; FMCSA-2006-24783 and click the search
button. When the new screen appears, click on the blue ``Comment Now!''
button on the right hand side of the page. On the new page, enter
information required including the specific section of this document to
which each comment applies, and provide a reason for each suggestion or
recommendation. If you submit your comments by mail or hand delivery,
submit them in an unbound format, no larger than 8\1/2\ by 11 inches,
suitable for copying and electronic filing. If you submit comments by
mail and would like to know that they reached the facility, please
enclose a stamped, self-addressed postcard or envelope.
    We will consider all comments and material received during the
comment period and may change this proposed rule based on your
comments. FMCSA may issue a final rule at any time after the close of
the comment period.

Viewing Comments and Documents

    To view comments, as well as any documents mentioned in this
preamble, To submit your comment online, go to http://www.regulations.gov and in the search box insert the docket number
FMCSA-2002-11714; FMCSA-2003-14223; FMCSA-2006-24015; FMCSA-2006-24783
and click ``Search.'' Next, click ``Open Docket Folder'' and you will
find all documents and comments related to the proposed rulemaking.

    Dated: June 23, 2014.
 Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2014-15570 Filed 7-1-14; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 50911-50912]
[FR Doc No: 2018-21939]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC19-2-000.
    Applicants: AL Sandersville, LLC, Effingham County Power, LLC, MPC
Generating, LLC, Walton County Power, LLC, Washington County Power,
LLC.
    Description: Joint Application for Authorization Under Section 203
of the Federal Power Act, et al. of AL Sandersville, LLC, et. al.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5078.
    Comments Due: 5 p.m. ET 10/24/18.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER10-1521-004; ER10-1520-004;ER10-1522-003.
    Applicants: Occidental Power Marketing, L.P., Occidental Power
Services, Inc., Occidental Chemical Corporation.
    Description: Second Supplement to June 29, 2018 Updated Market
Power Analysis for the Central Region of the Occidental MBRA Entities.
    Filed Date: 9/28/18.
    Accession Number: 20180928-5171.
    Comments Due: 5 p.m. ET 10/19/18.

    Docket Numbers: ER17-2515-004.
    Applicants: Chambers Cogeneration, Limited Partnership.
    Description: Compliance filing: Settlement Compliance Filing to be
effective 11/1/2017.
    Filed Date: 10/1/18.
    Accession Number: 20181001-5150.
    Comments Due: 5 p.m. ET 10/22/18.

    Docket Numbers: ER18-1424-001.
    Applicants: Rio Bravo Fresno, A California Joint Venture.
    Description: Report Filing: refund report 2018 to be effective N/A.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5171.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER18-1427-001.
    Applicants: Rio Bravo Rocklin, A California Joint Venture.
    Description: Report Filing: refund report 2018 to be effective N/A.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5174.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER18-2175-001.
    Applicants: Mid-Atlantic Interstate Transmission, LLC, West Penn
Power Company, The Potomac Edison Company, Monongahela Power Company,
Trans-Allegheny Interstate Line Company, American Transmission Systems,
Incorporated, PJM Interconnection, L.L.C.
    Description: Tariff Amendment: MAIT et al submit Supplement in
ER18-2175-000 re: IAs, SA Nos 2149 and 3743 to be effective 10/5/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5013.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER18-2426-001.
    Applicants: The Potomac Edison Company, PJM Interconnection, L.L.C.
    Description: Tariff Amendment: Potomac submits Supplemental Filing
in ER18-2426-000 re: IA SA No. 4452 to be effective 11/13/2018.

    Filed Date: 10/3/18.
    Accession Number: 20181003-5007.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-29-001.
    Applicants: NorthWestern Corporation.
    Description: Tariff Amendment: New Baseline--Service Agreements
under Montana OATT (Part 1) to be effective 10/8/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5008.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-29-002.
    Applicants: NorthWestern Corporation.
    Description: Tariff Amendment: New Baseline--Service Agreements
under Montana OATT (Part 2) to be effective 10/8/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5012.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-29-003.
    Applicants: NorthWestern Corporation.
    Description: Tariff Amendment: New Baseline--Service Agreements
under Montana OATT (Part 3 of 3) to be effective 10/8/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5014.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-33-001.
    Applicants: NorthWestern Corporation.
    Description: Tariff Amendment: New Baseline--Other Rate Schedules
(Montana) to be effective 10/8/2018.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5183.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER19-34-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Sec.  205(d) Rate Filing: 2018-10-02_MISO Pseudo-Tie
Congestion Overlap Phase 2 Filing to be effective 3/1/2019.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5155.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER19-35-000.
    Applicants: CPV Biomass Holdings, LLC.
    Description: Tariff Cancellation: Notice of Cancellation of Market-
Based Rate Tariff to be effective 10/3/2018.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5156.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER19-36-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Tariff Cancellation: Notice of Cancellation of WMPA SA
No. 4910; Queue No. AC2-161 to be effective 11/5/2018.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5157.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER19-37-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Sec.  205(d) Rate Filing: 2018-10-02_SA 3176 NSP-NSP
GIA (J460) to be effective 9/28/2018.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5184.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER19-38-000.
    Applicants: Dominion Energy Fairless, LLC.
    Description: Baseline eTariff Filing: Informational Reort--Rate
Schedule No. 2 to be effective 12/7/2018.
    Filed Date: 10/2/18.
    Accession Number: 20181002-5185.
    Comments Due: 5 p.m. ET 10/23/18.

    Docket Numbers: ER19-39-000.
    Applicants: Southern California Edison Company.
    Description: Sec.  205(d) Rate Filing: Eldorado Substation
Additional Facilities and Interconnection Agreement to be effective 12/
3/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5002.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-40-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1628R13 Western Farmers
Electric Cooperative NITSA to be effective 12/1/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5011.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-41-000.
    Applicants: Mid-Atlantic Interstate Transmission, LLC, PJM
Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: MAIT submits IA SA No. 4577
to be effective 12/3/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5018.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-42-000.
    Applicants: NorthWestern Corporation.
    Description: Tariff Cancellation: Cancellation of NWE Montana OATT
under Tariff ID 28 to be effective 10/8/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5075.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-43-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Tariff Cancellation: Notice of Cancellation of WMPA SA
No. 3389; Queue No. X3-081 to be effective 10/17/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5076.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-44-000.
    Applicants: Idaho Power Company.
    Description: Tariff Cancellation: Notice of Cancellation of Rate
Schedule 163--Comm Agree--LaGrande-Pocatello to be effective 12/3/2018.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5080.
    Comments Due: 5 p.m. ET 10/24/18.

    Docket Numbers: ER19-45-000.
    Applicants: Citizens Sunrise Transmission LLC.
    Description: Sec.  205(d) Rate Filing: Annual TRBAA Filing October
2018 to be effective 1/1/2019.
    Filed Date: 10/3/18.
    Accession Number: 20181003-5086.
    Comments Due: 5 p.m. ET 10/24/18.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: October 3, 2018.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2018-21939 Filed 10-9-18; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 249 (Monday, December 31, 2018)]
[Notices]
[Pages 67801-67808]
[FR Doc No: 2018-28376]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84951; File No. SR-FICC-2018-013]

Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing of Proposed Rule Change To Expand Sponsoring Member
Eligibility in the Government Securities Division Rulebook and Make
Other Changes

December 21, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, as amended, (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on December 13, 2018, Fixed Income Clearing
Corporation (``FICC'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by the
clearing agency.\3\ 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\ On December 13, 2018, FICC filed this proposed rule change
as an advance notice (SR-FICC-2018-802) with the Commission pursuant
to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act entitled the Payment, Clearing,
and Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1), and
Rule 19b-4(n)(1)(i) under the Act, 17 CFR 240.19b-4(n)(1)(i). A copy
of the advance notice is available at http://www.dtcc.com/legal/sec-rule-filings.aspx.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change would amend the FICC Government Securities
Division (``GSD'') Rulebook (``Rules'') \4\ in order to (i) allow a
broader group of Netting Members to participate in FICC as Sponsoring
Members, (ii) allow a Sponsoring Member to establish a Sponsoring
Member Omnibus Account that may contain transactions between a
Sponsored Member and a Netting Member other than the Sponsoring Member,
which Sponsoring Member Omnibus Account could be in addition to or in
lieu of a Sponsoring Member Omnibus Account in which only transactions
between a Sponsored Member and its Sponsoring Member would be
permitted, and (iii) make certain conforming and technical changes in
Rules 1 and 3A.
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    \4\ Capitalized terms not defined herein are defined in the
Rules, available at http://www.dtcc.com/~/media/Files/Downloads/
legal/rules/ficc_gov_rules.pdf.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

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

1. Purpose
    The purpose of this proposed rule change is to (i) allow a broader
group of Netting Members to participate in FICC as Sponsoring Members,
(ii) allow a Sponsoring Member to establish a Sponsoring Member Omnibus
Account that may contain transactions between a Sponsored Member and a
Netting Member other than the Sponsoring Member, which Sponsoring
Member Omnibus Account could be in addition to or in lieu of a
Sponsoring Member Omnibus Account in which only transactions between a
Sponsored Member and its Sponsoring Member would be permitted, and
(iii) make certain conforming and technical changes in Rules 1 and 3A.
(i) Background
    Under Rule 3A (Sponsoring Members and Sponsored Members), Bank
Netting Members that are ``well-capitalized'' (as defined by the
Federal Deposit Insurance Corporation's applicable regulations) \5\ and
have at least $5 billion in equity capital are permitted to sponsor, as
``Sponsoring Members,'' qualified institutional buyers as defined by
Rule 144A \6\ under the Securities Act of 1933, as amended
(``Securities Act''),\7\ and certain legal entities that, although not
organized as entities specifically listed in paragraph (a)(1)(i) of
Rule 144A under the Securities Act, satisfy the financial requirements
necessary to be qualified institutional buyers as specified in that
paragraph (i.e., Sponsored Members) into GSD membership.
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    \5\ 12 U.S.C. 1831o(a).
    \6\ 17 CFR 230.144A.
    \7\ 15 U.S.C. 77a et seq.
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    Under Rule 3A, a Sponsoring Member is permitted to submit to FICC
for comparison, novation, and netting certain types of eligible
securities transactions between itself and its Sponsored Members
(Sponsored Member Trades).\8\ The Sponsoring Member is required to
establish an omnibus account at FICC for all its Sponsored Members'
FICC-cleared securities transactions (Sponsoring Member Omnibus
Account),\9\ which is separate from the Sponsoring Member's regular
netting accounts. For operational and administrative purposes, FICC
interacts solely with the Sponsoring Member as agent for purposes of
the day-to-day satisfaction of its Sponsored Members' obligations to
FICC, including their securities and funds-only settlement
obligations.\10\
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    \8\ Rule 1, definition of ``Sponsored Member Trade,'' supra note
4.
    \9\ Rule 1, definition of ``Sponsoring Member Omnibus Account,''
supra note 4.
    \10\ Rule 3A, Sections 5, 6, 7, 8, and 9, supra note 4.
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Governance and Risk Management of Sponsoring Members
    All Sponsoring Members are subject to the following governance,
market risk management, and credit risk management processes
specifically related to their status as Sponsoring Members under the
current Rules, which would continue to apply equally to all Sponsoring
Members notwithstanding the proposed rule changes described in this
filing.
    The governance process applicable to the approval of every
applicant to become a Sponsoring Member is set forth in Rule 3A. In
order to become a Sponsoring Member, an applicant is required to go
through an application process, which includes a risk management review
of the applicant by FICC specifically related to the activity it
proposes to submit to FICC as a Sponsoring Member, and an approval of
such applicant by the FICC Board of Directors \11\ as a new Sponsoring
Member.\12\ This application process is separate from the applicant's
original Netting Member application process. If the FICC Board of
Directors denies the application of a Sponsoring Member applicant, FICC
is required to handle such denial in the same way as set forth in
Section 6 of Rule 2A with respect to

Netting Member applications.\13\ FICC may also require that a
Sponsoring Member applicant be a Netting Member for a time period
deemed necessary by FICC prior to being considered to become a
Sponsoring Member.\14\
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    \11\ FICC Board of Directors means the Board of Directors of
Fixed Income Clearing Corporation or a committee thereof acting
under delegated authority. Rule 1, supra note 4.
    \12\ Rule 3A, Section 2, supra note 4.
    \13\ Rule 3A, Section 2(b) and Rule 2A, Section 6, supra note 4.
    \14\ Rule 3A, Section 2(a), supra note 4.
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    Once a Sponsoring Member is approved by the FICC Board of
Directors, it is subject to ongoing credit surveillance and may be
placed on the Watch List and/or may be subject to enhanced surveillance
based on relevant factors as set forth in Rule 3, as FICC deems
necessary to protect FICC and its members.\15\
---------------------------------------------------------------------------

    \15\ Rule 3, Section 12, supra note 4.
---------------------------------------------------------------------------

    FICC mitigates the market risk associated with Sponsored Member
activity through the collection of Clearing Fund from the Sponsoring
Member.\16\ A Sponsoring Member is required to maintain a Required Fund
Deposit for all the Sponsored Member activity, which is calculated
twice daily on a gross basis, in its Sponsoring Member Omnibus
Account.\17\ Specifically, for purposes of calculating the Unadjusted
GSD Margin Portfolio Amount for a Sponsoring Member Omnibus Account,
each Sponsored Member's activity is assigned a separate VaR Charge,
and, as such, the Unadjusted GSD Margin Portfolio Amount for the
Sponsoring Member Omnibus Account is not reduced by any netting of
positions as between different Sponsored Members within that Sponsoring
Member Omnibus Account.\18\ In addition, for purposes of calculating
the Unadjusted GSD Margin Portfolio Amount applicable to a Sponsoring
Member Omnibus Account, FICC applies the higher of the Required Fund
Deposit calculation as of the beginning of the current Business Day and
intraday on the current Business Day.\19\ FICC has the right to apply
all such Clearing Fund deposits plus all other Clearing Fund deposits
of the Sponsoring Member for its Netting System accounts against any
obligations owing to FICC by the Sponsoring Member, including (but not
limited to) in a Sponsoring Member default situation.\20\ In a
Sponsoring Member default situation, FICC may apply all such Clearing
Fund deposits against any obligations owing to FICC by the Sponsoring
Member before any of the other resources in the GSD default loss
waterfall would be used, including, in the final tranche of such
waterfall, potential loss mutualization to Netting Members.\21\
---------------------------------------------------------------------------

    \16\ Rule 3A, Section 10, supra note 4.
    \17\ Rule 3A, Section 10(a), supra note 4.
    \18\ Rule 3A, Section 10(c), supra note 4.
    \19\ Id.
    \20\ Rule 3A, Section 10(b), supra note 4.
    \21\ See Rule 3A, Section 10(b) and Rule 4, Section 6, supra
note 4.
---------------------------------------------------------------------------

    Moreover, Sponsoring Members are also responsible for providing
FICC with a Sponsoring Member Guaranty \22\ whereby the Sponsoring
Member guarantees to FICC the payment and performance by its Sponsored
Members of their obligations under the Rules.\23\ Although Sponsored
Members are principally liable to FICC for their own settlement
obligations under the Rules, the Sponsoring Member is required to
provide a Sponsoring Member Guaranty to FICC with respect to such
obligations whereby if a Sponsored Member defaults and does not satisfy
its settlement obligations to FICC, the Sponsoring Member is required
to satisfy those settlement obligations on behalf of its defaulted
Sponsored Member. As long as the Sponsoring Member performs under the
Sponsoring Member Guaranty, it would not separately be considered in
default to FICC, but failure to do so would be grounds for FICC to
cease to act for the Sponsoring Member.\24\
---------------------------------------------------------------------------

    \22\ Section 2(c) of Rule 3A provides ``Each Netting Member to
become a Sponsoring Member shall also sign and deliver to [FICC] a
Sponsoring Member Guaranty . . . .'' A ``Sponsoring Member
Guaranty'' is defined in Rule 1 as ``a guaranty . . . that a
Sponsoring Member delivers to [FICC] whereby the Sponsoring Member
guarantees to [FICC] the payment and performance by its Sponsored
Members of their obligations under [the] Rules, including, without
limitation, all of the securities and funds-only settlement
obligations of its Sponsored Members under [the] Rules.'' Supra note
4.
    \23\ Rule 3A, Section 2(c), supra note 4.
    \24\ Rule 3A, Section 2(g), supra note 4.
---------------------------------------------------------------------------

Proposed Rule Changes To Expand Sponsoring Member Eligibility
    As described above, Rule 3A (Sponsoring Members and Sponsored
Members) currently provides that Bank Netting Members that are ``well-
capitalized'' (as defined by the Federal Deposit Insurance
Corporation's applicable regulations) \25\ and have at least $5 billion
in equity capital are eligible to become Sponsoring Members.\26\
---------------------------------------------------------------------------

    \25\ 12 U.S.C. 1831o(a).
    \26\ Rule 3A, Section 2(a), supra note 4.
---------------------------------------------------------------------------

    In 2017, the Commission approved FICC rule filing SR-FICC-2017-
003,\27\ which expanded the types of entities that are eligible to
participate in FICC as Sponsored Members under Rule 3A. Since that
time, Netting Members that are not Bank Netting Members have expressed
interest to FICC in participating in FICC as Sponsoring Members.
---------------------------------------------------------------------------

    \27\ Securities Exchange Act Release No. 80563 (May 1, 2017), 82
FR 21284 (May 5, 2017) (SR-FICC-2017-003).
---------------------------------------------------------------------------

    The proposed rule change would create two categories of Netting
Members that would be eligible to become Sponsoring Members. The first
category of Netting Members would include currently eligible Bank
Netting Members that are ``well-capitalized'' (as defined by the
Federal Deposit Insurance Corporation's applicable regulations) \28\
and have at least $5 billion in equity capital (hereinafter and in the
proposed rule change, ``Category 1 Sponsoring Members''). The second
category of Netting Members eligible to become Sponsoring Members would
include Netting Members that are Tier One Netting Members, except for
Inter-Dealer Broker Netting Members and Non-IDB Repo Brokers with
respect to activity in their Segregated Repo Accounts (hereinafter and
in the proposed rule change, ``Category 2 Sponsoring Members''). As
such, the proposed rule change would provide that Category 2 Sponsoring
Member applicants could include, for example, Dealer Netting Members,
Futures Commission Merchant Netting Members, and Foreign Netting
Members.
---------------------------------------------------------------------------

    \28\ 12 U.S.C. 1831o(a).
---------------------------------------------------------------------------

    FICC is proposing that neither Inter-Dealer Broker Netting Members
nor Non-IDB Repo Brokers with respect to activity in their Segregated
Repo Accounts be eligible to become Category 2 Sponsoring Members.
Although Inter-Dealer Broker Netting Members and Non-IDB Repo Brokers
are types of Netting Members, a cap applies to their respective loss
allocation obligations to FICC under Rule 4, Section 7 \29\ that does
not apply to other types of Netting Members; therefore, FICC does not
believe it would be appropriate to allow either Inter-Dealer Broker
Netting Members or Non-IDB Repo Brokers to be eligible to become
Category 2 Sponsoring Members. However, to the

extent an Inter-Dealer Broker Netting Member or Non-IDB Repo Broker
also has another type of Netting Member status with respect to which it
is not subject to the loss allocation cap described above, such Inter-
Dealer Broker Netting Member or Non-IDB Repo Broker could apply to
become a Category 2 Sponsoring Member under such other Netting Member
status.
---------------------------------------------------------------------------

    \29\ Section 7 of Rule 4 provides that ``an Inter-Dealer Broker
Netting Member, or a Non-IDB Repo Broker with respect to activity in
its Segregated Repo Account, shall not be subject to an aggregate
loss allocation in an amount greater than $5 million pursuant to
this Section 7 for losses and liabilities resulting from an Event
Period.'' Supra note 4. The limit on loss allocation for these
Members reflects their risk profile. Specifically, an Inter-Dealer
Broker Netting Member is required to (A) limit its business to
acting exclusively as a broker, (B) conduct all of its business in
Repo Transactions with Netting Members, and (C) conduct at least 90
percent of its business in transactions that are not Repo
Transactions with Netting Members. Rule 3, Section 8(e), supra note
4. Likewise, a Non-IDB Repo Broker is required to operate in the
same way as a Broker with respect to activity in its Segregated Repo
Account. Rule 1, definition of ``Repo Broker,'' supra note 4.
---------------------------------------------------------------------------

    The minimum financial requirements applicable to Netting Member
applicants to become Category 2 Sponsoring Members would be the same as
those that apply to them with respect to their respective Netting
Member category under Section 4(b) of Rule 2A. However, since a
Category 2 Sponsoring Member may have substantially less capital than a
Category 1 Sponsoring Member, the proposed rule change would provide
that FICC could impose financial requirements on an applicant to become
a Category 2 Sponsoring Member that are greater than the financial
requirements applicable to such applicant in its capacity as a Netting
Member under Section 4(b) of Rule 2A. FICC's determination as to
whether to impose such increased financial requirements on a Category 2
Sponsoring Member applicant would be based upon the level of the
anticipated positions and obligations of such applicant, the
anticipated risk associated with the volume and types of transactions
such applicant proposes to process through FICC as a Category 2
Sponsoring Member, and the overall financial condition of such
applicant. Such a determination by FICC to impose increased financial
requirements on a Category 2 Sponsoring Member applicant would be
subject to the approval of the FICC Board of Directors in connection
with its approval of the application of such Category 2 Sponsoring
Member, and, once approved, FICC would thereafter regularly review such
Category 2 Sponsoring Member regarding its continued adherence to such
increased financial requirements.
    In addition to reserving the right of FICC to impose financial
requirements on a Category 2 Sponsoring Member that are greater than
the financial requirements applicable to it in its capacity as a
Netting Member under Section 4(b) of Rule 2A, the proposed rule change
would also impose an activity limit on a Category 2 Sponsoring Member's
Sponsored Member activity so that such Sponsoring Member would only be
permitted to novate new Sponsored Member activity to FICC to the extent
the sum of the VaR Charges of its Sponsoring Member Omnibus Account(s)
and its Netting System accounts (hereinafter ``Aggregate VaR Charges'')
do not exceed its Netting Member Capital. The ratio of a Category 2
Sponsoring Member's Aggregate VaR Charges to its Netting Member Capital
would be calculated by FICC on at least an hourly basis for monitoring
purposes. To the extent a Category 2 Sponsoring Member's Aggregate VaR
Charges exceed its Netting Member Capital, it would not be permitted to
submit new Sponsored Member activity to FICC until its Netting Member
Capital equals or exceeds its Aggregate VaR Charges, unless otherwise
determined by FICC in order to promote orderly settlement, which would
include, but not be limited to, circumstances in which the novation of
such activity would have a risk-reducing impact on the Category 2
Sponsoring Member's overall FICC-cleared portfolio.
    FICC selected the ratio of Aggregate VaR Charges to Netting Member
Capital for purposes of establishing the activity limit for Category 2
Sponsoring Members because this ratio is an important indicator that a
Category 2 Sponsoring Member's financial resources, as measured by its
net assets or equity capital, are sufficient to meet the largest
component of its Required Fund Deposit (i.e., VaR Charges). VaR Charges
and Netting Member Capital are also metrics that already exist in the
Rules for purposes of determining Netting Members' Excess Capital
Ratios, and, in turn, whether an Excess Capital Premium could be
applied by FICC to Netting Members' Required Fund Deposits as provided
in Section 14 of Rule 3 (Ongoing Membership Requirements).\30\ As such,
Netting Members that are interested in becoming Category 2 Sponsoring
Members should already be familiar with and should be currently
monitoring their FICC-cleared portfolio with respect to such metrics.
---------------------------------------------------------------------------

    \30\ Rule 3, Section 14, supra note 4.
---------------------------------------------------------------------------

    FICC proposes to apply the above-referenced activity limit only on
Category 2 Sponsoring Members and not on Category 1 Sponsoring Members.
This is because Category 1 Sponsoring Members are ``well-capitalized''
\31\ and, as banks, subject to extensive prudential supervision and
regulation with respect to their obligations under guaranties of
performance, such as the Sponsoring Member Guaranty; therefore, FICC
believes the imposition of a limit on their Sponsored Member activity
would be unnecessary. However, given that FICC would not require
Category 2 Sponsoring Members to be banks or bank holding company
affiliates, a Category 2 Sponsoring Member may not be subject to a
regulatory standard equivalent to ``well-capitalized'' \32\ and/or may
not be subject to the same type of prudential supervision and
regulation as a Category 1 Sponsoring Member; therefore, FICC believes
it would be prudent from a risk management perspective to impose a
limit on Category 2 Sponsoring Members' Sponsored Member activity.
---------------------------------------------------------------------------

    \31\ 12 U.S.C. 1831o(a).
    \32\ Id.
---------------------------------------------------------------------------

    Moreover, in order to be consistent with FICC's authority under
Section 7 of Rule 3 (Ongoing Membership Requirements) with respect to
Members and applicants to become such, FICC proposes to reserve the
right to require each Sponsoring Member, or any Netting Member
applicant to become such, to furnish to FICC such adequate assurances
of its financial responsibility and operational capability within the
meaning of Section 7 of Rule 3 as FICC may at any time or from time to
time deem necessary or advisable in order to protect FICC and its
members, to safeguard securities and funds in the custody or control of
FICC and for which FICC is responsible, or to promote the prompt and
accurate clearance and settlement of securities transactions. Such a
determination by FICC to impose adequate assurances on a Sponsoring
Member applicant would be subject to the approval of the FICC Board of
Directors in connection with its approval of the application of such
Sponsoring Member, and, once approved, FICC would thereafter regularly
review such Sponsoring Member regarding its continued adherence to such
adequate assurances requirements, as appropriate. Any adequate
assurances requirements imposed on a Sponsoring Member after its
approval would be memorialized in writing to the Sponsoring Member and
regularly reviewed by senior risk management of FICC.
Proposed Rule Changes To Expand Sponsored Member Trade Definition
    Currently, the term ``Sponsored Member Trade'' is defined in Rule 1
as ``a transaction between a Sponsored Member and its Sponsoring
Member. . . .'' \33\ Certain prospective Sponsoring Members have
expressed an interest in allowing Sponsored Members to submit to FICC
eligible securities transactions with Netting Members other than their
Sponsoring Members. In light of the fact that in all cases, a
Sponsoring Member is in control of

which securities transactions it submits for clearing on behalf of its
Sponsored Members \34\ and, in turn, its related obligations to FICC
with respect to the Clearing Fund,\35\ loss allocation,\36\ Capped
Contingency Liquidity Facility[supreg] (``CCLF[supreg]''),\37\ the
Sponsoring Member Guaranty,\38\ and fees,\39\ FICC is proposing to
allow a Sponsoring Member to establish a Sponsoring Member Omnibus
Account that may contain transactions between a Sponsored Member and a
Netting Member other than the Sponsoring Member, which Sponsoring
Member Omnibus Account could be in addition to or in lieu of a
Sponsoring Member Omnibus Account in which only transactions between a
Sponsored Member and its Sponsoring Member would be permitted.\40\
---------------------------------------------------------------------------

    \33\ Rule 1, definition of ``Sponsored Member Trade,'' supra
note 4.
    \34\ Section 6(b) of Rule 3A provides ``The Sponsoring Member
shall act as processing agent for performing all functions and
receiving Reports and information set forth in the trade submission
and comparison Rules on behalf of its Sponsored Members.'' Supra
note 4.
    \35\ Section 10(a) of Rule 3A provides ``Each Sponsoring Member
shall make and maintain so long as such Member is a Sponsoring
Member a deposit to the Clearing Fund as a Required Fund Deposit to
support the activity in the Sponsoring Member Omnibus Account . . .
.'' Supra note 4.
    \36\ Rule 3A, Section 12, supra note 4.
    \37\ Approved by the Commission, CCLF will be implemented on
November 15, 2018. Securities Exchange Act Release No. 82090
(November 15, 2017), 82 FR 55427 (November 21, 2017) (SR-FICC-2017-
002).
    \38\ Section 2 of Rule 3A provides ``Each Netting Member to
become a Sponsoring Member shall also sign and deliver to [FICC] a
Sponsoring Member Guaranty . . . .'' A ``Sponsoring Member
Guaranty'' is defined in Rule 1 as ``a guaranty . . . that a
Sponsoring Member delivers to [FICC] whereby the Sponsoring Member
guarantees to [FICC] the payment and performance by its Sponsored
Members of their obligations under [the] Rules, including, without
limitation, all of the securities and funds-only settlement
obligations of its Sponsored Members under [the] Rules.'' Supra note
4.
    \39\ Fee Structure, supra note 4.
    \40\ To the extent a Sponsoring Member elects to establish a
Sponsoring Member Omnibus Account that may contain transactions
between a Sponsored Member and a Netting Member other than the
Sponsoring Member, the Required Fund Deposit for such Sponsoring
Member Omnibus Account would be calculated to be inclusive of all
transactions submitted into such account, including any transactions
between a Sponsored Member and a Netting Member other than the
Sponsoring Member as well as any transactions between a Sponsored
Member and the Sponsoring Member.
---------------------------------------------------------------------------

Benefits of the Proposal
    FICC believes that the novation of eligible securities transactions
to FICC provides Sponsoring Members and their Sponsored Members the
benefits of FICC's independent risk management and guaranty of
completion of settlement of such transactions. In addition, Sponsoring
Members may be able to offset or otherwise reduce their balance sheets
with respect to their obligations to FICC on Sponsored Member Trades,
as well as take lesser capital charges than would be required to the
extent they engaged in the same securities transactions with their
Sponsored Members outside of a central counterparty.\41\ By
participating in FICC as Sponsored Members, eligible institutional
firms may be afforded increased lending capacity and income because
balance sheet and capital constraints on their Sponsoring Members may
be alleviated. Specifically, the opportunity for Sponsoring Members to
intermediate their Sponsored Members' securities transactions in a more
capital efficient manner through FICC may allow such Sponsoring Members
to engage in a greater number of securities transactions, thereby
potentially increasing their Sponsored Members' opportunity to lend
and, in turn, their income.
---------------------------------------------------------------------------

    \41\ Sponsoring Members interested in such relief should discuss
this matter with their accounting and regulatory capital experts.
---------------------------------------------------------------------------

    FICC believes that the proposed rule changes to expand Sponsoring
Member eligibility and the Sponsored Member Trade definition, as
described above, would help to safeguard the U.S. financial market by
lowering the risk of liquidity drain, protecting against fire sale
risk,\42\ and decreasing settlement and operational risk.
---------------------------------------------------------------------------

    \42\ Fire sale risk is the risk of rapid asset sales of
securities held by cash lenders when a dealer defaults. This rapid
sale has the potential to create a market crisis because cash
lenders are likely to sell large amounts of securities in a short
period of time, which could dramatically reduce the price of such
securities that such lenders are looking to sell.
---------------------------------------------------------------------------

    FICC believes that expanding the types of Netting Members that are
eligible to participate in FICC as Sponsoring Members would increase
the number of Sponsoring Members and, in turn, the number of Sponsored
Member Trades that would be cleared and settled by FICC. Similarly,
FICC believes that the proposed rule changes to expand the Sponsored
Member Trade definition would also increase the number of Sponsored
Member Trades that would be cleared and settled by FICC. FICC believes
having more Sponsored Member Trades that clear and settle through FICC
would mitigate the risk of a large scale exit by firms from the U.S.
financial market in a stress scenario and therefore lower the risk of a
liquidity drain in such a scenario. Specifically, to the extent firms
would otherwise be engaging in the same type of eligible securities
transactions (e.g., repurchase agreement transactions) outside of a
central counterparty, FICC believes having such securities transactions
novated to FICC and subject to FICC's guaranty of completion of
settlement would reduce the risk that such firms discontinue such
securities transactions in a Netting Member default situation.
    Similarly, FICC believes having more Sponsored Member Trades that
clear and settle through FICC would also reduce the potential for
market disruption from fire sales. Specifically, in a Netting Member
default situation, more securities transactions with the defaulted
Netting Member could be centrally hedged and liquidated in an orderly
manner by FICC rather than by individual counterparties in potential
fire sale conditions.
    In addition, to the extent firms would otherwise be engaging in
eligible securities transactions (e.g., repurchase agreement
transactions) outside of a central counterparty, FICC believes having
more Sponsored Member Trades that clear and settle through FICC would
also decrease settlement and operational risk in the U.S. financial
market in that such securities transactions would now be eligible to be
net settled \43\ and subject to guaranteed settlement, novation, and
independent risk management through FICC.
---------------------------------------------------------------------------

    \43\ It should be noted that net settlements of securities for
Sponsored Member Trades would be executed by the Sponsoring Member's
designated clearing bank in accordance with Rule 12 (Securities
Settlement).
---------------------------------------------------------------------------

(ii) Proposed Changes to the Rules
Rule 1 (Definitions)
    FICC is proposing to add two defined terms: ``Category 1 Sponsoring
Member'' and ``Category 2 Sponsoring Member'' to Rule 1. In order to
conform Rule 1 with the inclusion of these additional defined terms,
FICC is also proposing to amend the definition of ``Sponsoring Member''
to include references to a Category 1 Sponsoring Member and a Category
2 Sponsoring Member.
    FICC is also proposing to amend the definition of ``Sponsored
Member Trade.'' Currently, the term ``Sponsored Member Trade'' is
defined in Rule 1 as ``a transaction between a Sponsored Member and its
Sponsoring Member. . . .'' \44\ As described above, in light of the
fact that certain prospective Sponsoring Members have expressed an
interest in allowing Sponsored Members to submit to FICC eligible
securities transactions with Netting Members other than their
Sponsoring Member, and that, in all cases, a Sponsoring Member is in
control of which securities transactions

it submits for clearing on behalf of its Sponsored Members \45\ and, in
turn, its related obligations to FICC with respect to the Clearing
Fund,\46\ loss allocation,\47\ CCLF,\48\ Sponsoring Member
Guaranty,\49\ and fees,\50\ FICC is proposing to expand the Sponsored
Member Trade definition to provide that a Sponsored Member Trade is a
transaction that satisfies the requirements of Section 5 of Rule 3A and
that is (a) between a Sponsored Member and its Sponsoring Member or (b)
between a Sponsored Member and a Netting Member.
---------------------------------------------------------------------------

    \44\ Rule 1, definition of ``Sponsored Member Trade,'' supra
note 4.
    \45\ Supra note 34.
    \46\ Supra note 35.
    \47\ Supra note 36.
    \48\ Supra note 37.
    \49\ Supra note 38.
    \50\ Supra note 39.
---------------------------------------------------------------------------

    Similarly, FICC is proposing to amend the definition of
``Sponsoring Member Omnibus Account'' in Rule 1 to provide that a
Sponsoring Member may elect to establish one or more Sponsoring Member
Omnibus Accounts, and that each Sponsoring Member Omnibus Account may
contain activity within the meaning of clause (a) of the proposed
Sponsored Member Trade definition or activity within the meaning of
clause (b) of such definition. In addition, FICC is proposing a
technical change to revise ``the Account'' to ``an Account'' to reflect
that a Sponsoring Member may have more than one Sponsoring Member
Omnibus Account under this proposal.
Rule 3A (Sponsoring Members and Sponsored Members)
    Currently, only Bank Netting Members that are ``well-capitalized''
\51\ and have at least $5 billion in equity capital are eligible to
apply to become Sponsoring Members. In order to establish a second
category of Netting Members eligible to become Sponsoring Members, FICC
is proposing to amend Section 2(a) of Rule 3A by (i) renaming
Sponsoring Members that are well-capitalized Bank Netting Members as
Category 1 Sponsoring Members and (ii) adding a sentence to Section
2(a) of Rule 3A that provides that a Netting Member that is a Tier One
Netting Member, other than an Inter-Dealer Broker Netting Member, or a
Non-IDB Repo Broker with respect to activity in its Segregated Repo
Account, would be eligible to apply to become a Category 2 Sponsoring
Member. In addition, FICC is proposing a technical change to add a
missing parenthesis in Section 2(a) of Rule 3A.
---------------------------------------------------------------------------

    \51\ 12 U.S.C. 1831o(a).
---------------------------------------------------------------------------

    FICC is proposing a conforming change to reorganize Section 2(b) of
Rule 3A into four (4) subsections, grouping the current first three
sentences in that section into subsection (i) and the current last
sentence in that section into subsection (iii).
    Under the proposal, Netting Members that are Tier One Netting
Members, except for Inter-Dealer Broker Netting Members and Non-IDB
Repo Brokers with respect to activity in their Segregated Repo
Accounts, would be eligible to apply to become Category 2 Sponsoring
Members. Accordingly, an applicant to become a Category 2 Sponsoring
Member may have substantially less capital than a Category 1 Sponsoring
Member. Therefore, FICC is proposing to add a new subsection (ii) to
Section 2(b) of Rule 3A that would provide FICC with the right to
impose financial requirements on a Netting Member applying to become a
Category 2 Sponsoring Member that are greater than the financial
requirements applicable to the applicant in its capacity as a Netting
Member under Section 4(b) of Rule 2A, based upon the level of the
anticipated positions and obligations of such applicant, the
anticipated risk associated with the volume and types of transactions
such applicant proposes to process through FICC as a Category 2
Sponsoring Member, and the overall financial condition of such
applicant. FICC is also proposing to add that the Board would approve
any increased financial requirements imposed by FICC in connection with
the approval of an application of a Netting Member to become a Category
2 Sponsoring Member, and FICC would thereafter regularly review such
Category 2 Sponsoring Member regarding its compliance with such
increased financial requirements.
    In addition, in order to be consistent with FICC's authority under
Section 7 of Rule 3 (Ongoing Membership Requirements) with respect to
Members and applicants to become such, FICC is proposing to add a new
subsection (iv) to Section 2(b) of Rule 3A that would require each
Sponsoring Member, or any Netting Member applicant to become such, to
furnish to FICC such adequate assurances of its financial
responsibility and operational capability within the meaning of Section
7 of Rule 3 as FICC may at any time or from time to time deem necessary
or advisable in order to protect FICC and its members, to safeguard
securities and funds in the custody or control of FICC and for which
FICC is responsible, or to promote the prompt and accurate clearance
and settlement of securities transactions. FICC is also proposing to
add that the Board would approve any adequate assurances imposed by
FICC in connection with the approval of an application of a Netting
Member to become a Sponsoring Member, and FICC would thereafter
regularly review such Sponsoring Member regarding its compliance with
such adequate assurances, as appropriate. Furthermore, FICC is
proposing to add that any adequate assurances imposed on a Sponsoring
Member by FICC after its approval would be communicated in writing to
the Sponsoring Member, and FICC would thereafter regularly review such
Sponsoring Member regarding its compliance with such adequate
assurances, as appropriate.
    Moreover, in order to conform to the proposal to allow a Netting
Member that is a Tier One Netting Member, other than an Inter-Dealer
Broker Netting Member, or a Non-IDB Repo Broker with respect to
activity in its Segregated Repo Account, to apply to become a Category
2 Sponsoring Member, FICC is proposing to amend Section 2(e) of Rule 3A
by deleting the reference to Bank Netting Members and adding language
that provides that each Sponsoring Member would submit to FICC the
reports and information required to be submitted for its respective
type of Netting Member.
    Furthermore, in order to impose an activity limit on a Category 2
Sponsoring Member's Sponsored Member activity, as described above, FICC
is proposing to add a new sentence to Section 2(h) of Rule 3A that
provides if the sum of the VaR Charges of its Sponsoring Member Omnibus
Account(s) and its Netting System accounts exceeds its Netting Member
Capital, a Category 2 Sponsoring Member would not be permitted to
submit activity into its Sponsoring Member Omnibus Account(s), unless
otherwise determined by FICC in order to promote orderly settlement.
FICC would also make a conforming change to the first sentence in this
section to add ``Category 1'' before the first reference to Sponsoring
Member.
2. Statutory Basis
    FICC believes this proposal is consistent with the requirements of
the Act, and the rules and regulations thereunder applicable to a
registered clearing agency. Specifically, FICC believes this proposal
is consistent with Section 17A(b)(3)(F) of the Act \52\ and Rule 17Ad-
22(e)(18),\53\ as promulgated under the Act, for the reasons described
below.
---------------------------------------------------------------------------

    \52\ 15 U.S.C. 78q-1(b)(3)(F).
    \53\ 17 CFR 240.17Ad-22(e)(18).
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be

designed to (i) assure the safeguarding of securities and funds which
are in the custody or control of the clearing agency or for which it is
responsible, (ii) remove impediments to and perfect the mechanism of a
national system for the prompt and accurate clearance and settlement of
securities transactions, and (iii) promote the prompt and accurate
clearance and settlement of securities transactions.\54\
---------------------------------------------------------------------------

    \54\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    FICC believes that the proposal is designed to remove certain
impediments to the clearance and settlement of securities transactions,
including the risk of liquidity drain, fire sale risk, and settlement
and operational risks as it would enable a greater number of securities
transactions to be cleared and settled by a central counterparty.
Specifically, FICC believes that the clearance and settlement of
securities transactions through a central counterparty would help to
safeguard the U.S. financial market by lowering the risk of a liquidity
drain through the central counterparty's guaranty of completion of
settlement of centrally cleared securities transactions, and would
protect against fire sale risk through the central counterparty's
ability to centralize and control the hedging and liquidation of a
failed counterparty's portfolio. FICC also believes that having more
securities transactions clear and settle through a central counterparty
would decrease the settlement and operational risks that market
participants would otherwise face to the extent they were required to
clear and settle their securities transactions bilaterally because
those securities transactions would be eligible to be net settled and
subject to guaranteed settlement, novation, and independent risk
management by the central counterparty.
    FICC believes that the proposed rule changes to expand the
Sponsored Member Trade definition would increase the number of
Sponsored Member Trades that would be cleared and settled by FICC. FICC
also believes that the proposed rule changes to expand Sponsoring
Member eligibility would increase the number of Sponsoring Members and,
in turn, the number of Sponsored Member Trades that would be cleared
and settled by FICC.
    By lowering the risk of liquidity drain in the U.S. financial
market, protecting against fire sale risk, and making a greater number
of securities transactions eligible to be net settled and subject to
guaranteed settlement, novation, and independent risk management by
FICC, FICC believes that these proposed rule changes would remove
impediments to and perfect the mechanism of a national system for the
prompt and accurate clearance and settlement of securities
transactions, consistent with the requirements of the Act. Therefore,
FICC believes that the proposed rule changes to expand the Sponsored
Member Trade definition as well as expand Sponsoring Member eligibility
are consistent with Section 17A(b)(3)(F) of the Act.\55\
---------------------------------------------------------------------------

    \55\ Id.
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act requires that the Rules be designed
to assure the safeguarding of securities and funds which are in the
custody or control of FICC or for which it is responsible.\56\ FICC
believes that the risk management that would apply to the proposal
would allow FICC to assure the safeguarding of securities and funds
which are in the custody or control of FICC or for which it is
responsible. Specifically, as provided under the current Rules and as
described above, all Sponsoring Members would continue to be subject to
an approval process that is separate from their original Netting Member
applications, ongoing credit surveillance in their capacity as
Sponsoring Members, as well as the calculation of Required Fund
Deposits with respect to their Sponsoring Member Omnibus Accounts
whereby no offsets for netting of positions as between different
Sponsored Members are permitted and the higher of the Required Fund
Deposit calculation as of the beginning of the current Business Day and
intraday on the current Business Day is applied by FICC.
---------------------------------------------------------------------------

    \56\ Id.
---------------------------------------------------------------------------

    In addition, as provided under the proposed rule change and as
described above, Category 2 Sponsoring Member applicants would be
subject to the same financial requirements as those that apply to them
with respect to their respective Netting Member category under Section
4(b) of Rule 2A, but FICC would reserve the right to impose greater
financial requirements on the Category 2 Sponsoring Member applicant
based upon the level of the anticipated positions and obligations of
such applicant, the anticipated risk associated with the volume and
types of transactions such applicant proposes to process through FICC
as a Category 2 Sponsoring Member, and the overall financial condition
of such applicant. An activity limit would also be imposed on a
Category 2 Sponsoring Member's Sponsored Member activity so that such
Sponsoring Member would only be permitted to novate new Sponsored
Member activity to FICC to the extent its Aggregate VaR Charges do not
exceed its Netting Member Capital, unless otherwise determined by FICC
in order to promote orderly settlement, which would include, but not be
limited to, circumstances in which the novation of such activity would
have a risk-reducing impact on the Category 2 Sponsoring Member's
overall FICC-cleared portfolio.
    Moreover, as provided under the proposed rule change and as
described above, FICC would reserve the right to require each
Sponsoring Member, or any Netting Member applicant to become such, to
furnish to FICC such adequate assurances of its financial
responsibility and operational capability within the meaning of Section
7 of Rule 3 as FICC may at any time or from time to time deem necessary
or advisable in order to protect FICC and its members, to safeguard
securities and funds in the custody or control of FICC and for which
FICC is responsible, or to promote the prompt and accurate clearance
and settlement of securities transactions.
    By structuring the proposal in a way that addresses potential
market and credit risks, FICC believes that the proposed rule change
would assure the safeguarding of securities and funds which are in the
custody or control of FICC or for which it is responsible, consistent
with Section 17A(b)(3)(F) of the Act.\57\
---------------------------------------------------------------------------

    \57\ Id.
---------------------------------------------------------------------------

    In addition, FICC believes that the proposed rule changes to make
certain conforming and/or technical changes in Rule 1 and Rule 3A would
be designed to promote the prompt and accurate clearance and settlement
of securities transactions by ensuring that the Rules remain clear and
accurate to Members. Having clear and accurate Rules would facilitate
Members' understanding of those rules and provide Members with
increased predictability and certainty regarding their obligations. As
such, FICC believes these proposed changes would promote the prompt and
accurate clearance and settlement of securities, consistent with
Section 17A(b)(3)(F) of the Act.\58\
---------------------------------------------------------------------------

    \58\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(18) under the Act requires, in part, that FICC
establish, implement, maintain and enforce written policies and
procedures reasonably designed to establish objective, risk-based, and
publicly disclosed criteria for participation.\59\ The proposed rule
changes to expand

Sponsoring Member eligibility would establish objective, risk-based,
and publicly disclosed criteria for additional types of Netting Members
to participate in FICC as Sponsoring Members. Specifically, as
described above, an applicant to become a Category 2 Sponsoring Member
would be required to be a Netting Member that is a Tier One Netting
Member, other than an Inter-Dealer Broker Netting Member, or a Non-IDB
Repo Broker with respect to activity in its Segregated Repo Account,
and the Rules establish objective, risk-based, and publicly disclosed
criteria in Rules 2A and 3 for Netting Members.\60\ Therefore, FICC
believes that the proposed rule changes to expand Sponsoring Member
eligibility are consistent with Rule 17Ad-22(e)(18) under the Act cited
above.
---------------------------------------------------------------------------

    \59\ 17 CFR 240.17Ad-22(e)(18).
    \60\ Rules 2A and 3, supra note 4.
---------------------------------------------------------------------------

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

    FICC believes that the proposed rule changes to expand Sponsoring
Member eligibility could have an impact on competition by both
promoting competition and burdening competition. The proposed rule
change to expand Sponsoring Member eligibility could promote
competition by increasing the types of Netting Members that may
participate in FICC as Sponsoring Members. This could promote
competition by enabling firms that are not Bank Netting Members and
that were not previously eligible to participate in GSD as Sponsoring
Members to now do so as Category 2 Sponsoring Members. At the same
time, the proposed rule change would also impose certain requirements
on Category 2 Sponsoring Members that are different than those that
would apply to Category 1 Sponsoring Members. Specifically, the
proposed rule change would provide for a limit on the activity Category
2 Sponsoring Members could submit to FICC on behalf of their Sponsored
Members, and also provide that FICC could impose greater financial
requirements on a Category 2 Sponsoring Member applicant than would
otherwise apply to such firm in its capacity as a Netting Member, based
upon the level of the anticipated positions and obligations of such
applicant, the anticipated risk associated with the volume and types of
transactions such applicant proposes to process through FICC as a
Category 2 Sponsoring Member, and the overall financial condition of
such applicant. These requirements may impact firms that are unable to
comply therewith, and thereby burden competition by excluding them from
being able to participate in FICC as Category 2 Sponsoring Members.
However, FICC does not believe that the proposed rule change would
result in a significant burden on competition given that: (i) The
metrics proposed by FICC for the limit on Category 2 Sponsoring
Members' Sponsored Member activity, namely VaR Charges and Netting
Member Capital, already exist in the Rules for purposes of determining
whether FICC could apply an Excess Capital Premium to a Netting
Member's Required Fund Deposit, therefore, Netting Members interested
in becoming Category 2 Sponsoring Members should already be familiar
with and should be currently monitoring their FICC-cleared portfolio
with respect to such metrics, and (ii) while FICC may subject Category
2 Sponsoring Members to greater financial requirements than would
otherwise apply to them as Netting Members, current Sponsoring Members
who would be considered Category 1 Sponsoring Members under the
proposed rule change are already subject to greater financial
requirements than would otherwise apply to them as Bank Netting
Members, i.e., they are required to have at least $5 billion in equity
capital and be ``well capitalized'' \61\ rather than have of $100
million in equity capital, and capital levels and ratios that meet the
applicable minimum levels required by their Appropriate Regulatory
Agency.\62\ Moreover, FICC would not restrict the ability of Category 2
Sponsoring Members to enter into securities transactions with Sponsored
Members outside of GSD.
---------------------------------------------------------------------------

    \61\ 12 U.S.C. 1831o(a).
    \62\ Rule 2A, Section 4(b)(ii)(A)(1), supra note 4.
---------------------------------------------------------------------------

    Regardless of whether the potential burden on competition discussed
in the previous paragraph is significant, FICC believes that any
resulting burden on competition that may be created by the proposed
rule change would be necessary and appropriate in furtherance of the
purposes of the Act, as permitted by Section 17A(b)(3)(I) of the
Act.\63\ FICC believes that any burden on competition that may be
created by the proposed rule change would be necessary in furtherance
of the purposes of the Act \64\ because, as described above in Item
II(A)2, the Rules must be designed to assure the safeguarding of
securities and funds that are in FICC's custody or control or for which
it is responsible.\65\ FICC has designed the risk management processes
that would be applicable to the Category 2 Sponsoring Members to assure
the safeguarding of securities and funds that are in FICC's custody or
control or for which it is responsible. As described above, FICC would
subject Category 2 Sponsoring Members to the same governance, market
risk management, and credit risk management processes as those that
apply to Category 1 Sponsoring Members, as well as impose a limit on
the activity they could submit to FICC on behalf of their Sponsored
Members. FICC would also have the right to subject Category 2
Sponsoring Members to greater financial requirements in their capacity
as Category 2 Sponsoring Members than would otherwise apply to them in
their capacity as Netting Members.
---------------------------------------------------------------------------

    \63\ 15 U.S.C. 78q-1(b)(3)(I).
    \64\ Id.
    \65\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    FICC also believes any burden on competition that may be created by
the requirements FICC proposes to impose on Category 2 Sponsoring
Members that are different than those that apply to Category 1
Sponsoring Members would be appropriate in furtherance of the purposes
of the Act \66\ because the proposed rule change must be structured in
the context of FICC's prudent risk management processes. Because FICC
would not require Category 2 Sponsoring Members to be banks or bank
holding company affiliates, a Category 2 Sponsoring Member may not be
subject to a regulatory standard equivalent to ``well-capitalized''
\67\ and/or may not be subject to the same type of prudential
supervision and regulation as a Category 1 Sponsoring Member. As such,
FICC believes it would be prudent from a risk management perspective to
subject them to a limit on the activity they could submit to FICC on
behalf of their Sponsored Members and have the right to subject them to
greater financial requirements in their capacity as Category 2
Sponsoring Members than would otherwise apply to them in their capacity
as Netting Members, as described above.
---------------------------------------------------------------------------

    \66\ 15 U.S.C. 78q-1(b)(3)(I).
    \67\ 12 U.S.C. 1831o(a).
---------------------------------------------------------------------------

    FICC does not believe that the proposed rule changes to exclude
Inter-Dealer Broker Netting Members and Non-IDB Repo Brokers with
respect to activity in their Segregated Repo Accounts from being
eligible to become Category 2 Sponsoring Members would have an impact
on competition because, as described above, Inter-Dealer Broker Netting
Members and Non-IDB Repo Brokers could apply to become Category 2
Sponsoring Members under another Netting Member status.

    FICC believes that the proposed rule change to expand the Sponsored
Member Trade definition could have an impact on competition by
promoting competition. The proposed rule change to expand the Sponsored
Member Trade definition could promote competition by increasing the
number of potential counterparties a Sponsored Member could have in
clearing. Under the current Rules, the Sponsoring Member must be the
counterparty to all of its Sponsored Members' FICC-cleared securities
transactions.\68\ The proposed rule changes would provide that as long
as a Sponsoring Member establishes a Sponsoring Member Omnibus Account
to which securities transactions between its Sponsored Members and
other Netting Members could be submitted, its Sponsored Members could
transact in clearing with Netting Members other than itself, which
could increase trading opportunities for Sponsored Members and Netting
Members and thereby promote competition.
---------------------------------------------------------------------------

    \68\ Rule 1, definition of ``Sponsored Member Trade,'' supra
note 4.
---------------------------------------------------------------------------

    FICC does not believe that the proposed rule changes to make the
conforming and technical changes described above would have an impact
on competition.\69\ These changes would simply provide specificity,
clarity, and additional transparency within the Rules and not affect
Members' rights and obligations. As such, FICC believes that these
proposed rule changes would not have any impact on competition.
---------------------------------------------------------------------------

    \69\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

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

    Written comments relating to the proposed rule change have not been
solicited or received. FICC will notify the Commission of any written
comments received by FICC.

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 self-regulatory organization 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.
    The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the 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-FICC-2018-013 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FICC-2018-013. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of FICC and on DTCC's website
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-FICC-2018-013 and should be submitted on
or before January 22, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\70\
---------------------------------------------------------------------------

    \70\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2018-28376 Filed 12-28-18; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 148 (Thursday, August 5, 2021)]
[Notices]
[Pages 42820-42823]
[FR Doc No: 2021-16687]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP21-467-000]

Texas Gas Transmission, LLC; Notice of Scoping Period Requesting
Comments on Environmental Issues for the Proposed Henderson County
Expansion Project

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) will prepare an environmental document that will discuss
the environmental impacts of the Henderson County Expansion Project
involving construction and operation of facilities by Texas Gas
Transmission, LLC (Texas Gas) in Henderson and Webster Counties,

Kentucky and Posey and Johnson Counties, Indiana. The Commission will
use this environmental document in its decision-making process to
determine whether the project is in the public convenience and
necessity.
    This notice announces the opening of the scoping process the
Commission will use to gather input from the public and interested
agencies regarding the project. As part of the National Environmental
Policy Act (NEPA) review process, the Commission takes into account
concerns the public may have about proposals and the environmental
impacts that could result from its action whenever it considers the
issuance of a Certificate of Public Convenience and Necessity. This
gathering of public input is referred to as ``scoping.'' The main goal
of the scoping process is to focus the analysis in the environmental
document on the important environmental issues. Additional information
about the Commission's NEPA process is described below in the NEPA
Process and Environmental Document section of this notice.
    By this notice, the Commission requests public comments on the
scope of issues to address in the environmental document. To ensure
that your comments are timely and properly recorded, please submit your
comments so that the Commission receives them in Washington, DC on or
before 5:00 p.m. Eastern Time on August 30, 2021. Comments may be
submitted in written form. Further details on how to submit comments
are provided in the Public Participation section of this notice.
    Your comments should focus on the potential environmental effects,
reasonable alternatives, and measures to avoid or lessen environmental
impacts. Your input will help the Commission staff determine what
issues they need to evaluate in the environmental document. Commission
staff will consider all written comments during the preparation of the
environmental document.
    If you submitted comments on this project to the Commission before
the opening of this docket on June 25, 2021, you will need to file
those comments in Docket No. CP21-467-000 to ensure they are considered
as part of this proceeding.
    This notice is being sent to the Commission's current environmental
mailing list for this project. State and local government
representatives should notify their constituents of this proposed
project and encourage them to comment on their areas of concern.
    If you are a landowner receiving this notice, a pipeline company
representative may contact you about the acquisition of an easement to
construct, operate, and maintain the proposed facilities. The company
would seek to negotiate a mutually acceptable easement agreement. You
are not required to enter into an agreement. However, if the Commission
approves the project, the Natural Gas Act conveys the right of eminent
domain to the company. Therefore, if you and the company do not reach
an easement agreement, the pipeline company could initiate condemnation
proceedings in court. In such instances, compensation would be
determined by a judge in accordance with state law. The Commission does
not subsequently grant, exercise, or oversee the exercise of that
eminent domain authority. The courts have exclusive authority to handle
eminent domain cases; the Commission has no jurisdiction over these
matters.
    Texas Gas provided landowners with a fact sheet prepared by the
FERC entitled ``An Interstate Natural Gas Facility On My Land? What Do
I Need To Know?'' which addresses typically asked questions, including
the use of eminent domain and how to participate in the Commission's
proceedings. This fact sheet along with other landowner topics of
interest are available for viewing on the FERC website (www.ferc.gov)
under the Natural Gas Questions or Landowner Topics link.

Public Participation

    There are three methods you can use to submit your comments to the
Commission. Please carefully follow these instructions so that your
comments are properly recorded. The Commission encourages electronic
filing of comments and has staff available to assist you at (866) 208-
3676 or<EMAIL_ADDRESS>    (1) You can file your comments electronically using the eComment
feature, which is located on the Commission's website (www.ferc.gov)
under the link to FERC Online. Using eComment is an easy method for
submitting brief, text-only comments on a project;
    (2) You can file your comments electronically by using the eFiling
feature, which is located on the Commission's website (www.ferc.gov)
under the link to FERC Online. With eFiling, you can provide comments
in a variety of formats by attaching them as a file with your
submission. New eFiling users must first create an account by clicking
on ``eRegister.'' You will be asked to select the type of filing you
are making; a comment on a particular project is considered a ``Comment
on a Filing''; or
    (3) You can file a paper copy of your comments by mailing them to
the Commission. Be sure to reference the project docket number (CP21-
467-000) on your letter. Submissions sent via the U.S. Postal Service
must be addressed to: Kimberly D. Bose, Secretary, Federal Energy
Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC
20426. Submissions sent via any other carrier must be addressed to:
Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission,
12225 Wilkins Avenue, Rockville, MD 20852.
    Additionally, the Commission offers a free service called
eSubscription which makes it easy to stay informed of all issuances and
submittals regarding the dockets/projects to which you subscribe. These
instant email notifications are the fastest way to receive notification
and provide a link to the document files which can reduce the amount of
time you spend researching proceedings. Go to https://www.ferc.gov/ferc-online/overview to register for eSubscription.

Summary of the Proposed Project

    Texas Gas proposes to construct and operate a new lateral and meter
and regulator (M&R) station, upgrade an existing M&R station, and add
additional compression to and modify Texas Gas' existing Slaughters
Compressor Station. The Henderson County Expansion Project would
provide up to 220 million standard cubic feet of natural gas per day to
Southern Indiana Gas and Electric Company d/b/a CenterPoint Energy
Indiana South (CenterPoint) at its AB Brown Generating Station in Posey
County, Indiana. According to Texas Gas, its project would support
CenterPoint's retirement of four existing coal-fired units and
implementation of new intermittent renewable resources (i.e., solar and
wind) by providing the reliability of intermittent natural gas service
during natural fluctuations in wind and solar availability.
    The Henderson County Expansion Project would consist of the
following facilities:
     Henderson County Lateral--Construction of an approximately
24-mile-long, 20-inch-diameter natural gas transmission pipeline
extending from a new tie-in facility in Henderson County, Kentucky to
the new AB Brown M&R Station in Posey County, Indiana.
     AB Brown M&R Station and Point of Demarcation Site (Posey
County, Indiana)--Construction of a delivery M&R station, receiver
facility, and a

0.08-mile-long, 16-inch-diameter interconnecting pipeline terminating
at the new Point of Demarcation Site which would serve as CenterPoint's
tie-in for project facilities for its AB Brown Plant.
     Slaughters Compressor Station (Webster County, Kentucky)--
Installation of a new 4,863-horsepower Solar Centaur 50 turbine
compressor unit with piping modifications and other appurtenant
facilities, abandonment in place of the existing Compressor Unit 5, and
placement on standby of existing Compressor Units 6 and 7.
     New ancillary facilities including a main line valve and
tie-in facility in Henderson County, Kentucky and upgrades to an
existing M&R station in Johnson County, Indiana.
    The general location of the project facilities is shown in appendix
1.\1\
---------------------------------------------------------------------------

    \1\ The appendices referenced in this notice will not appear in
the Federal Register. Copies of the appendices were sent to all
those receiving this notice in the mail and are available at
www.ferc.gov using the link called ``eLibrary.'' For instructions on
connecting to eLibrary, refer to the last page of this notice. At
this time, the Commission has suspended access to the Commission's
Public Reference Room due to the proclamation declaring a National
Emergency concerning the Novel Coronavirus Disease (COVID-19),
issued by the President on March 13, 2020. For assistance, contact
FERC at [email protected] or call toll free,<PHONE_NUMBER>
or TTY<PHONE_NUMBER>.
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Land Requirements for Construction

    Construction of the proposed facilities would disturb about 402
acres of land for the aboveground facilities and the pipeline.
Following construction, Texas Gas would maintain about 152 acres for
permanent operation of the project's facilities; the remaining acreage
would be restored and revert to former uses. About 47.5 percent of the
proposed pipeline route parallels existing pipeline, utility, or road
rights-of-way.

NEPA Process and the Environmental Document

    Any environmental document issued by the Commission will discuss
impacts that could occur as a result of the construction and operation
of the proposed project under the relevant general resource areas:

 Geology and soils;
 water resources and wetlands;
 vegetation and wildlife;
 threatened and endangered species;
 cultural resources;
 land use;
 air quality and noise; and
 reliability and safety.

    Commission staff will also evaluate reasonable alternatives to the
proposed project or portions of the project and make recommendations on
how to lessen or avoid impacts on the various resource areas. Your
comments will help Commission staff identify and focus on the issues
that might have an effect on the human environment and potentially
eliminate other issues from further study and discussion in the
environmental document.
    Following this scoping period, Commission staff will determine
whether to prepare an Environmental Assessment (EA) or an Environmental
Impact Statement (EIS). The EA or the EIS will present Commission
staff's independent analysis of the issues. If Commission staff
prepares an EA, a Notice of Schedule for the Preparation of an
Environmental Assessment will be issued. The EA may be issued for an
allotted public comment period. The Commission would consider timely
comments on the EA before making its decision regarding the proposed
project. If Commission staff prepares an EIS, a Notice of Intent to
Prepare an EIS/Notice of Schedule will be issued, which will open up an
additional comment period. Staff would then prepare a draft EIS which
would be issued for public comment. Commission staff will consider all
timely comments received during the comment period on the draft EIS and
revise the document, as necessary, before issuing a final EIS. Any EA
or draft and final EIS will be available in electronic format in the
public record through eLibrary \2\ and the Commission's natural gas
environmental documents web page (https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents). If eSubscribed, you
will receive instant email notification when the environmental document
is issued.
---------------------------------------------------------------------------

    \2\ For instructions on connecting to eLibrary, refer to the
last page of this notice.
---------------------------------------------------------------------------

    With this notice, the Commission is asking agencies with
jurisdiction by law and/or special expertise with respect to the
environmental issues of this project to formally cooperate in the
preparation of the environmental document.\3\ Agencies that would like
to request cooperating agency status should follow the instructions for
filing comments provided under the Public Participation section of this
notice.
---------------------------------------------------------------------------

    \3\ The Council on Environmental Quality regulations addressing
cooperating agency responsibilities are at Title 40, Code of Federal
Regulations, Section 1501.8.
---------------------------------------------------------------------------

Consultation Under Section 106 of the National Historic Preservation
Act

    In accordance with the Advisory Council on Historic Preservation's
implementing regulations for section 106 of the National Historic
Preservation Act, the Commission is using this notice to initiate
consultation with the applicable State Historic Preservation Office(s),
and to solicit their views and those of other government agencies,
interested Indian tribes, and the public on the project's potential
effects on historic properties.\4\ The environmental document for this
project will document findings on the impacts on historic properties
and summarize the status of consultations under section 106.
---------------------------------------------------------------------------

    \4\ The Advisory Council on Historic Preservation's regulations
are at Title 36, Code of Federal Regulations, Part 800. Those
regulations define historic properties as any prehistoric or
historic district, site, building, structure, or object included in
or eligible for inclusion in the National Register of Historic
Places.
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Environmental Mailing List

    The environmental mailing list includes federal, state, and local
government representatives and agencies; elected officials;
environmental and public interest groups; Native American Tribes; other
interested parties; and local libraries and newspapers. This list also
includes all affected landowners (as defined in the Commission's
regulations) who are potential right-of-way grantors, whose property
may be used temporarily for project purposes, or who own homes within
certain distances of aboveground facilities, and anyone who submits
comments on the project and includes a mailing address with their
comments. Commission staff will update the environmental mailing list
as the analysis proceeds to ensure that Commission notices related to
this environmental review are sent to all individuals, organizations,
and government entities interested in and/or potentially affected by
the proposed project.
    If you need to make changes to your name/address, or if you would
like to remove your name from the mailing list, please complete one of
the following steps:
    (1) Send an email to<EMAIL_ADDRESS>stating your
request. You must include the docket number CP21-467-000 in your
request. If you are requesting a change to your address, please be sure
to include your name and the correct address. If you are requesting to
delete your address from the mailing list, please include your name and
address as it appeared on this notice. This email address is unable to
accept comments.

OR

    (2) Return the attached ``Mailing List Update Form'' (appendix 2).

Additional Information

    Additional information about the project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC website at www.ferc.gov using the eLibrary link. Click on the
eLibrary link, click on ``General Search'' and enter the docket number
in the ``Docket Number'' field. Be sure you have selected an
appropriate date range. For assistance, please contact FERC Online
Support at<EMAIL_ADDRESS>or<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of all formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    Public sessions or site visits will be posted on the Commission's
calendar located at https://www.ferc.gov/news-events/events along with
other related information.

    Dated: July 29, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021-16687 Filed 8-4-21; 8:45 am]
BILLING CODE 6717-01-P