[Federal Register Volume 78, Number 3 (Friday, January 4, 2013)]
[Notices]
[Pages 792-795]
[FR Doc No: 2012-31670]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68549; File No. SR-NSCC-2012-10]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change To Eliminate the
Offset of Its Obligations With Institutional Delivery Transactions that
Settle at The Depository Trust Company for the Purpose of Calculating
Its Clearing Fund Under Procedure XV of Its Rules & Procedures

December 28, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 17, 2012, the National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change described in Items I, II and
III below, which Items have been prepared primarily by NSCC. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    NSCC proposes to modify its Rules & Procedures (``Rules'') to
eliminate the offset of NSCC obligations with institutional delivery
(``ID'') transactions that settle at the Depository Trust Company
(``DTC'') for the purpose of calculating the NSCC clearing fund
(``Clearing Fund'') under Procedure XV of the Rules.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\3\
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    \3\ The Commission has modified the text of the summaries
prepared by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

(a) Proposal Overview
    A primary objective of NSCC's Clearing Fund is to have on deposit
from each applicable Member assets sufficient to satisfy losses that
may otherwise be incurred by NSCC as the result of the default of the
Member and the resultant close out of that Member's unsettled positions
under NSCC's trade guaranty. Each Member's Clearing Fund required
deposit is calculated daily pursuant to a formula set forth in
Procedure XV of the Rules designed to provide sufficient funds to cover
this risk of loss. The Clearing Fund formula accounts for a variety of
risk factors through the application of a number of components, each
described in Procedure XV.\4\
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    \4\ In addition to those described in this filing, Clearing Fund
components also include (i) A mark-to-market component which, with
certain exclusions, takes into account any difference between the
contract price and market price for net positions of each security
in a Member's portfolio through settlement; (ii) a ``special
charge'' in view of price fluctuations in or volatility or lack of
liquidity of any security; (iii) an additional charge relating to a
Member's outstanding fail positions; (iv) a ``specified activity
charge'' for transactions scheduled to settle on a shortened
settlement cycle (i.e., less than T+3 or T+3 for ``as-of''
transactions); (v) an additional charge that NSCC may require of
Members on surveillance status; and (vii) an ``Excess Capital
Premium'' that takes into account the degree to which a Member's
collateral requirement compares to the Member's excess net capital
by applying a charge if a Member's Required Deposit, minus any
amount applied from the charges described in (ii) and (iii) above,
is above its required capital.
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    The Value-at-Risk component, or ``VaR'', is a core component of
this formula and is designed to calculate the amount of money that may
be lost on a portfolio over a given period of time assumed necessary to
liquidate the portfolio, within a given level of confidence.\5\ The
Market Maker Domination component, or ``MMDOM'', is charged to Market
Makers,\6\ or firms that clear for them. In calculating the MMDOM, if
the sum of the absolute values of net unsettled positions in a security
for which the firm in question makes a market is greater than that
firm's excess net capital, NSCC may then charge the firm an amount
equal to such excess or the sum of each of the absolute values of the
affected net unsettled positions, or a combination of both. MMDOM
operates to identify concentration within a given CUSIP.
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    \5\ NSCC's equity VaR model assumes a 99% confidence interval,
uses a 150-day historical look-back period, and assumes a three-day
liquidation period. In effect, NSCC assumes the market conditions
observed over the past 150 days are predictive of the market
conditions expected over the course of the next three business days.
Pursuant to Procedure XV, NSCC may exclude from the VaR charge ``Net
Unsettled Positions in classes of securities whose volatility is (x)
less amendable to statistical analysis, such as OTC Bulletin Board
or Pink Sheet issues or issues trading below a designated dollar
threshold, or (y) amendable to generally accepted statistical
analysis in a complex manner, such as municipal or corporate
bonds.'' The charge for such positions is determined by multiplying
the absolute value of the positions by a pre-determined percentage.
    \6\ As used in Procedure XV, the term Market Maker means a firm
that is registered by FINRA as a Market Maker.
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    Pursuant to Procedure XV of the Rules, NSCC may calculate the VaR
and MMDOM components of a Member's Clearing Fund requirement after
taking into account any offsetting pending (i.e., non-fail) ID
transactions that have been confirmed and/or affirmed through an
institutional delivery system acceptable to NSCC (typically Omgeo LLC
(``Omgeo''), a joint venture of the Depository Trust and Clearing
Corporation and Thomson Reuters) (``ID Offset'').\7\ NSCC is proposing
to eliminate the ID Offset from its Clearing Fund calculations in order
to eliminate the market risk that, in the event NSCC ceases to act for
a Member with pending ID transactions, it may be unable to complete
those pending ID transactions in the time frame contemplated by its
current Clearing Fund calculations and, as a result, may have
insufficient margin in its Clearing Fund.
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    \7\ The changes proposed by this rule filing will not impact
NSCC's ID Net Service.
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    NSCC reviews its risk management processes against federal
securities laws and rulemaking promulgated by the Commission, and
applicable regulatory and industry guidelines, including, but not
limited to the Principles for Financial Market Infrastructures
(``PFMI'') of the Committee on Payment and Settlement Systems and the
Technical Committee of the International Organization of Securities
Commissions (``CPSS-IOSCO'').\8\ In accordance with Commission
rules,\9\ specifically Rule 17Ad-22(b)(1) addressing measurement and
management of credit exposures, Rule 17Ad-22(b)(2) addressing margin
requirements, and Rule 17Ad-22(d)(11) addressing default procedures,
and also in accordance with the PFMIs, this proposed rule change should
enhance NSCC's ability to more effectively

manage its credit exposures to participants, help ensure that it is
able to cover its credit exposures to its participant for all products
through an effective, risk-based margin system, limit NSCC's exposures
and losses, and enhance protections against market risk that may arise
when it ceases to act for a Member with open ID transaction activity.
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    \8\ CPSS-IOSCO PFMI (April 2012), available at http://www.bis.org/publ/cpss101a.pdf.
    \9\ Securities and Exchange Commission Release No. 34-68080;
File No. S7-08-11 (available at http://www.sec.gov/rules/final/2012/34-68080.pdf), to be effective on January 2, 2013.
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ID Transactions
    The parties involved in an institutional trade include the
institutional investor (such as mutual funds, insurance companies,
hedge funds, bank trust departments, and pension funds), the investment
manager (who enters trade orders on behalf of institutional investors),
the buying broker and the selling broker, and custodian banks.\10\
Trades between the buying broker and the selling broker are typically
settled through NSCC's Continuous Net Settlement system (``CNS'').\11\
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    \10\ Prime broker ID transactions settling at NSCC are not
included in the ID Offset, as they are included in the Member's NSCC
activity once such transactions are affirmed, and, therefore, are
not addressed in this filing. The ID transactions included in the ID
Offset and described in this rule filing are activity that is held
in custody at a bank.
    \11\ CNS is NSCC's core netting and allotting system, where all
eligible compared and recorded transactions for a particular
settlement date are netted by issue into one net long (buy) or net
short (sell) position, and NSCC becomes the contra-party for
settlement purposes, assuming the obligation of its Members that are
receiving securities to receive and pay for those securities, and
the obligation of Members that are delivering securities to make the
delivery.
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    Before ID trades are sent to DTC, where they settle delivery versus
payment, the trade allocation details are matched between the executing
broker and the institutional investor. After an executing broker has
provided a final notice of execution associated with the client's
order, most institutional clients will provide trade allocation details
to the executing broker using a service provided by Omgeo. When the
executing broker accepts and processes the trade allocations, an
electronic confirmation is provided through Omgeo's TradeSuite service
to the institutional investor or its agent (typically the institutional
client's custodian bank) for affirmation. Omgeo links with the various
parties to institutional trades to provide real-time central matching
capabilities, electronically comparing trade details and notifying
parties of any exceptions. After the trade allocation details are
affirmed, the trade is considered matched and institutional delivery
details are sent to DTC for settlement.
    Completion of the money and securities settlement of institutional
trades occurs at DTC. Because investment managers are not participants
of and do not have direct accounts at DTC, their securities are held in
custodial accounts with banks who are participants at DTC. Therefore,
when the institutional delivery details for confirmed and affirmed ID
trades are sent to DTC from Omgeo, the delivering investment manager's
custodian bank, or broker, as the case may be, must authorize the
delivery, generating a deliver order that will settle in accordance
with DTC's rules.
    NSCC Risk Management receives a daily feed from Omgeo, including
both ID trades that have only been confirmed as well as those that have
also been affirmed. For purposes of the ID Offset, NSCC includes ID
trades that are confirmed and/or affirmed on trade date (T) and those
ID trades which have been affirmed on T+1 and remain affirmed through
settlement date (SD).
ID Offset
    Procedure XV currently allows for a Member's net unsettled NSCC
position in a particular CUSIP to be compared to any pending ID
transactions settling at DTC for potential offset for purposes of
calculating the VaR and the MMDOM components of a Member's Clearing
Fund requirement, defined as the ID Offset. The ID Offset is based on
the assumption that, in the event of a Member insolvency, NSCC will be
able to close out any trades for which there is a corresponding ID
transaction settling at DTC by completing that ID transaction.
Therefore, the VaR and the MMDOM components are calculated after taking
into account any offsetting pending (i.e., non-fail) ID transactions
that have been confirmed and/or affirmed, reducing the Clearing Fund
requirement for those Members with ID transactions. ID transactions are
included in the ID Offset only if they are on the opposite side of the
market from the Member's net NSCC position (i.e., only if they reduce
that net position).
Potential Inability To Complete ID Transactions
    Generally, when NSCC ceases to act for a Member, it is obligated,
for those transactions to which the trade guaranty has attached, to pay
for deliveries made by non-defaulting Members that are due, through
CNS, to the failed Member (``Long Allocations'') on the day of
insolvency and the days following. As described above, the current
calculation of the VaR and MMDOM components of NSCC's Clearing Fund are
based on the assumption that, in the event of a Member default, NSCC
will be able to complete the pending ID transactions that were used to
offset that Member's unsettled NSCC position. If NSCC is unable to
complete the ID transactions as contemplated by this calculation, then
NSCC may need to liquidate a portfolio that could be substantially
different than the portfolio that NSCC collected Clearing Fund for,
leaving NSCC potentially under collateralized and exposed to market
risk.
    There are a number of reasons why NSCC may not be able to complete
an insolvent Member's open ID transactions. First, NSCC does not
guarantee ID transactions and completion of these transactions by the
counterparty of the ID transaction, which is not a Member of NSCC, is
voluntary. Further, the institutional customer is not a Member of NSCC,
is not bound by NSCC's Rules, and is not party to any legally binding
contract with NSCC that requires the institutional customer or its
custodian to complete the transaction. Finally, based on news that a
Member may be in distress or insolvent, the institutional customer or
its investment advisor may feel compelled to take immediate market
action with respect to the institutional buy or sell transaction, in
order to reduce its market risk; this effectively eliminates the option
for NSCC to complete these transactions, either entirely or on the
timetable assumed by the Clearing Fund calculation.
    While NSCC's Risk Management systems net ID transactions by CUSIP
across all settlement days for the purposes of the ID Offset, ID
transactions settle trade by trade between the executing broker and the
custodian. As a result, the netted ID position used to offset the NSCC
position could potentially be comprised of thousands of individual
trades with hundreds of different counterparties. It would be time
consuming for NSCC to contact each counterparty individually to get
their agreement to complete ID transactions, which would delay the
determination of the portfolio requiring liquidation in the event of a
cease to act, and thus hold up the prompt close out of the defaulter's
open positions, exposing NSCC to additional market risk not covered by
the margin collected.
Implementation Time Frame
    Following Commission approval, in order to mitigate the impact of
this proposed rule change, NSCC proposes to implement the changes set
forth in this filing on over an 18-month period. On a date no earlier
than 10 days

following notice to Members by Important Notice (``Initial
Implementation Date''), NSCC proposes to eliminate the ID Offset from
ID transactions that have only been confirmed, but have not yet been
affirmed. At this time, NSCC will continue to apply the ID Offset to ID
transactions that have been affirmed. During the 12-month period
following the Initial Implementation Date, NSCC will discuss with
Members, whose business will be affected by the elimination of the ID
Offset, mechanisms to mitigate this impact.
    Beginning on a date approximately 12 months from the Initial
Implementation Date, and no earlier than 10 days following notice to
Members by Important Notice, NSCC will eliminate from the ID Offset all
affirmed ID transactions that have reached settlement date at the time
the Clearing Fund calculations are run. Three months later, or
approximately 15 months following the Initial Implementation Date, and
on a date no earlier than 10 days following notice to Members by
Important Notice, NSCC will eliminate from the ID Offset all affirmed
ID transactions that have reached either settlement date or the day
prior to settlement date. Finally, on a date approximately 18 months
following the Initial Implementation Date, and no earlier than 10 days
following notice to Members by Important Notice, NSCC will eliminate
the ID Offset entirely for all ID transactions. Members will be advised
of each proposed implementation date through issuance of NSCC Important
Notices, which are publically available at www.dtcc.com.
    The table below illustrates this proposed implementation schedule:

     Proposed Implementation Schedule for Elimination of ID Offsets
------------------------------------------------------------------------
                 Action                      Scheduled implementation
------------------------------------------------------------------------
Eliminate from ID Offset those ID        Following approval of rule
 transactions that have only been         filing, and on a date no
 confirmed, but have not yet been         earlier than 10 days following
 affirmed.                                notice to Members by Important
                                          Notice (``Initial
                                          Implementation Date'').
Eliminate from ID Offset all affirmed    12 months following the Initial
 ID transactions that have reached        Implementation Date, and on a
 Settlement Date (``SD'').                date no earlier than 10 days
                                          following notice to Members by
                                          Important Notice.
Eliminate from ID Offset all affirmed    15 months following the Initial
 ID transactions that have reached SD     Implementation Date, and on a
 and the day prior to SD (SD-1).          date no earlier than 10 days
                                          following notice to Members by
                                          Important Notice.
Eliminate from ID Offset all ID          18 months following the Initial
 transactions.                            Implementation Date , and on a
                                          date no earlier than 10 days
                                          following notice to Members by
                                          Important Notice.
------------------------------------------------------------------------

Proposed Rule Changes
    NSCC proposes to amend Procedure XV to eliminate the ID Offset from
calculation of the VaR and Market Maker Domination components of a
Member's Clearing Fund requirement as currently provided for in, with
respect to CNS transactions, Section I(A)(1)(a)(i) and Section
I(A)(1)(d), and, with respect to Balance Order transactions, Section
I(A)(2)(a)(i) and Section I(A)(2)(c).
    (b) As a central counterparty, NSCC occupies an important role in
the securities settlement system by interposing itself between
counterparties to financial transactions and thereby reducing the risk
faced by participants and contributing to global financial stability.
In this role, however, NSCC is necessarily subject to certain risks in
the event of the default or failure of a Member. NSCC believes that the
proposed rule change should help mitigate the risk that NSCC will be
under collateralized when it ceases to act for that Member and is
unable to complete the Member's ID transactions in the time frame
contemplated by its Clearing Fund calculation. As such, NSCC believes
the proposal is consistent with the requirements of the Act,
specifically Section 17A(b)(3)(F),\12\ and the rules and regulations
thereunder applicable to NSCC, specifically Rule 17Ad-22(b)(1)
addressing measurement and management of credit exposures, Rule 17Ad-
22(b)(2) addressing margin requirements, and Rule 17AD-22(d)(11)
addressing default procedures.\13\
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    \12\ 15 U.S.C. 78q-1(b)(3)(F).
    \13\ Securities and Exchange Commission Release No. 34-68080;
File No. S7-08-11 (available at http://www.sec.gov/rules/final/2012/34-68080.pdf), to be effective on January 2, 2013.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC believes that the proposed rule change will not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The rule change will mitigate
the market risk that may arise after NSCC has ceased to act for that
Member if it is unable to complete the ID transactions in the time
frame contemplated by its Clearing Fund calculation, leaving NSCC
potentially under collateralized. By mitigating its exposure to this
market risk, NSCC believes that the proposed rule change should
contribute to the goal of financial stability in the event of Member
default, and will render not unreasonable or inappropriate any burden
on competition that the changes could be regarded as imposing.
    Further, NSCC intends to implement this rule change over an
extended period of time, as described herein, allowing Members to
address any impact this change may have on their business. This
implementation schedule is designed to be fair and not
disproportionately impact any Members more than others, and the
proposal to implement this rule change over an extended period of time
will provide all impacted Members with time to identify mechanisms to
mitigate the impact of this proposal on their business.

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

    While written comments relating to the proposed rule change have
not yet been solicited, NSCC has received a letter on behalf of certain
Members seeking further review of the impact of the proposed rule
change, and consideration of alternatives. NSCC notified the Commission
of the contents of the letter and promptly delivered a response to
those Members addressing their concerns. A Member working group has
been established to discuss mechanisms for impacted Members to

mitigate the potential impact of the rule changes described in this
filing.

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.\14\ The clearing
agency shall post notice on its Web site of proposed changes that are
implemented.
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    \14\ NSCC also filed the proposals contained in this proposed
rule change as an advance notice Pursuant to Section 806(e)(1) of
the Payment, Clearing, and Settlement Supervision Act of 2010
(``Clearing Supervision Act'') and Rule 19b-4(n)(1)(i) thereunder.
12 U.S.C. 5465(e)(1); 17 CFR 240.19b-4(n)(i). Proposed changes filed
under the Clearing Supervision Act may be implemented either: at the
time the Commission notifies the clearing agency that it does not
object to the proposed change and authorizes its implementation, or,
if the Commission does not object to the proposed rule change,
within 60 days of the later of (i) the date that the advance notice
was filed with the Commission or (ii) the date that any additional
information requested by the Commission is received. 12 U.S.C.
5465(e)(1)(G).
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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-NSCC-2012-10 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2012-10. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filings also will be available
for inspection and copying at the principal office of NSCC and on
NSCC's Web site at http://www.dtcc.com/downloads/legal/rule_filings/2012/nscc/NSCC-2012-10.pdf. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NSCC-2012-10 and should be submitted on or before
January 25, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-31670 Filed 1-3-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Notices]
[Pages 50659-50660]
[FR Doc No: 2018-21772]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CD18-14-000]

Wallowa Resources Community Solutions Inc.; Notice of Preliminary
Determination of a Qualifying Conduit Hydropower Facility and
Soliciting Comments and Motions To Intervene

    On September 26, 2018, the Wallowa Resources Community Solutions
Inc., filed a notice of intent to construct a qualifying conduit
hydropower facility, pursuant to section 30 of the Federal Power Act
(FPA), as amended by section 4 of the Hydropower Regulatory Efficiency
Act of 2013 (HREA). The proposed Arrowhead Pipeline Hydro Station
Project would have an installed capacity of 61 kilowatts (kW), and
would be located on the existing Arrowhead Irrigation Pipeline. The
project would be located near the Township of Joseph in Wallowa County,
Oregon.
    Applicant Contact: Kyle Petrocine, Wallowa Resources Community
Solutions Inc., 401 NE 1st Street,

Enterprise, OR 97828, Phone No<PHONE_NUMBER>, email:
[email protected].
    FERC Contact: Robert Bell, Phone No.<PHONE_NUMBER>; Email:
[email protected].
    Qualifying Conduit Hydropower Facility Description: The proposed
project would consist of: (1) A single turbine and induction generator
connected to an existing irrigation pipeline with a total generating
capacity of 61 kW, and (2) appurtenant facilities. The proposed project
would have an estimated annual generation of 87 megawatt-hours.
    A qualifying conduit hydropower facility is one that is determined
or deemed to meet all of the criteria shown in the table below.

      Table 1--Criteria for Qualifying Conduit Hydropower Facility
------------------------------------------------------------------------
                                                           Satisfies (Y/
      Statutory provision              Description              N)
------------------------------------------------------------------------
FPA 30(a)(3)(A), as amended by   The conduit the                       Y
 HREA.                            facility uses is a
                                  tunnel, canal,
                                  pipeline, aqueduct,
                                  flume, ditch, or
                                  similar manmade water
                                  conveyance that is
                                  operated for the
                                  distribution of water
                                  for agricultural,
                                  municipal, or
                                  industrial consumption
                                  and not primarily for
                                  the generation of
                                  electricity.
FPA 30(a)(3)(C)(i), as amended   The facility is                       Y
 by HREA.                         constructed, operated,
                                  or maintained for the
                                  generation of electric
                                  power and uses for
                                  such generation only
                                  the hydroelectric
                                  potential of a non-
                                  federally owned
                                  conduit.
FPA 30(a)(3)(C)(ii), as amended  The facility has an                   Y
 by HREA.                         installed capacity
                                  that does not exceed 5
                                  megawatts.
FPA 30(a)(3)(C)(iii), as         On or before August 9,                Y
 amended by HREA.                 2013, the facility is
                                  not licensed, or
                                  exempted from the
                                  licensing requirements
                                  of Part I of the FPA.
------------------------------------------------------------------------

    Preliminary Determination: The proposed Arrowhead Pipeline Hydro
Station Project will not interfere with the primary purpose of the
conduit, which is to transport water for irrigation to ranches and farm
in Oregon's Southern Alder Slope Valley. Therefore, based upon the
above criteria, Commission staff preliminarily determines that the
proposal satisfies the requirements for a qualifying conduit hydropower
facility, which is not required to be licensed or exempted from
licensing.
    Comments and Motions To Intervene: Deadline for filing comments
contesting whether the facility meets the qualifying criteria is 45
days from the issuance date of this notice.
    Deadline for filing motions to intervene is 30 days from the
issuance date of this notice.
    Anyone may submit comments or a motion to intervene in accordance
with the requirements of Rules of Practice and Procedure, 18 CFR
385.210 and 385.214. Any motions to intervene must be received on or
before the specified deadline date for the particular proceeding.
    Filing and Service of Responsive Documents: All filings must (1)
bear in all capital letters the ``COMMENTS CONTESTING QUALIFICATION FOR
A CONDUIT HYDROPOWER FACILITY'' or ``MOTION TO INTERVENE,'' as
applicable; (2) state in the heading the name of the applicant and the
project number of the application to which the filing responds; (3)
state the name, address, and telephone number of the person filing; and
(4) otherwise comply with the requirements of sections 385.2001 through
385.2005 of the Commission's regulations.\1\ All comments contesting
Commission staff's preliminary determination that the facility meets
the qualifying criteria must set forth their evidentiary basis.
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    \1\ 18 CFR 385.2001-2005 (2017).
---------------------------------------------------------------------------

    The Commission strongly encourages electronic filing. Please file
motions to intervene and comments using the Commission's eFiling system
at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can submit
brief comments up to 6,000 characters, without prior registration,
using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information at the
end of your comments. For assistance, please contact FERC Online
Support at [email protected],<PHONE_NUMBER> (toll free), or
(202) 502-8659 (TTY). In lieu of electronic filing, please send a paper
copy to: Secretary, Federal Energy Regulatory Commission, 888 First
Street NE, Washington, DC 20426. A copy of all other filings in
reference to this application must be accompanied by proof of service
on all persons listed in the service list prepared by the Commission in
this proceeding, in accordance with 18 CFR 4.34(b) and 385.2010.
    Locations of Notice of Intent: Copies of the notice of intent can
be obtained directly from the applicant or such copies can be viewed
and reproduced at the Commission in its Public Reference Room, Room 2A,
888 First Street NE, Washington, DC 20426. The filing may also be
viewed on the web at http://www.ferc.gov/docs-filing/elibrary.asp using
the ``eLibrary'' link. Enter the docket number (i.e., CD18-14) in the
docket number field to access the document. For assistance, call toll-
free 1-866-208-3676 or email [email protected]. For TTY, call
(202) 502-8659.

    Dated: October 1, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-21772 Filed 10-5-18; 8:45 am]
 BILLING CODE 6717-01-P