[Federal Register: January 27, 2006 (Volume 71, Number 18)]
[Notices]
[Page 4625-4631]
[DOCID:fr27ja06-93]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53166; File No. SR-Phlx-2006-05]

Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Order Granting Accelerated Approval to a Proposed
Rule Change and Amendment No. 1 Thereto Relating to the Phlx XL Risk
Monitor Mechanism

January 23, 2006.
    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 January 13, 2006, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. On January
19, 2006, the Exchange filed Amendment No. 1 to the proposed rule
change.\3\ The Commission is publishing this notice to solicit comments
on the proposed rule change, as amended, from interested persons. In
addition, the Commission is granting accelerated approval of the
proposed rule change, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 corrected certain technical errors in the
text of the proposed rule change.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to adopt Phlx Rule 1093, Phlx XL Risk Monitor
Mechanism, to provide Exchange specialists, Streaming Quote Traders
(``SQTs''),\4\ Remote Streaming Quote Traders (``RSQTs''),\5\ and non-
SQT ROTs \6\ who are required to submit continuous two-sided electronic
quotations pursuant to Phlx Rule 1014(b)(ii)(E) \7\ (collectively,
``Phlx XL participants'') protection from the unreasonable risk
associated with the execution of an excessive number of contracts
resulting from near simultaneous executions in a single option issue.
Such protection would be provided by way of the implementation of a
Risk Monitor Mechanism. The Exchange also proposes conforming changes
to Phlx Rule 1017, Openings in Options, and to Phlx Rule 1082, Firm
Quotations, to describe the Exchange's disseminated quotation when the
disseminated size is exhausted and the specialist has not yet revised
its quotation. The text of the proposed rule change, as amended, is
below. Proposed new language is in italics; proposed deletions are in
[brackets].
---------------------------------------------------------------------------

    \4\ An SQT is an Exchange Registered Options Trader (``ROT'')
who has received permission from the Exchange to generate and submit
option quotations electronically through the Exchange's Automated
Options Market (``AUTOM'') in eligible options to which such SQT is
assigned. An SQT may only submit such quotations while such SQT is
physically present on the floor of the Exchange. See Phlx Rule
1014(b)(ii)(A).
    \5\ An RSQT is an ROT that is a member or member organization
with no physical trading floor presence who has received permission
from the Exchange to generate and submit option quotations
electronically through AUTOM in eligible options to which such RSQT
has been assigned. An RSQT may only submit such quotations
electronically from off the floor of the Exchange. See Phlx Rule
1014(b)(ii)(B).
    \6\ A non-SQT ROT is an ROT who is neither an SQT nor an RSQT.
See Phlx Rule 1014(b)(ii)(C).
    \7\ Phlx Rule 1014(b)(ii)(E) requires non-SQT ROTs who transact
more than 20% of their contract volume in an option electronically
versus in open outcry during a particular calendar quarter to submit
proprietary electronic quotations in such an option during the
subsequent calendar quarter for a certain number of series in such
option, depending on the percent of total volume transacted
electronically versus in open outcry on the Exchange in such option.
---------------------------------------------------------------------------

Phlx XL Risk Monitor Mechanism

    Rule 1093. (a) The Phlx XL system (the ``system'') will maintain a
counting program (``counting program'') for each specialist, SQT, RSQT,
and non-SQT ROT who is required to submit continuous two-sided
electronic quotations pursuant to Rule 1014(b)(ii)(E) (collectively,
``Phlx XL participants'') assigned in a particular option. The counting
program will count the number of contracts traded in such an option by
each Phlx XL participant within a specified time period, not to exceed
15 seconds, established by each Phlx XL participant (the ``specified
time period''). The specified time period will commence for an option
when a transaction occurs in any series in such option.
    (b)(i) Risk Monitor Mechanism. The system will engage the Risk
Monitor Mechanism in a particular option when the counting program has
determined that a Phlx XL participant has traded a Specified Engagement
Size (as defined below) established by such Phlx XL participant during
the specified time period. When such Phlx XL participant has traded the
Specified Engagement Size during the specified time period, the Risk
Monitor Mechanism will automatically remove such Phlx XL participant's
quotations from the Exchange's disseminated quotation in all series of
the particular option.
    (ii) Specified Engagement Size. The Specified Engagement Size is
determined by the following: (A) For each series in an option, the
counting program will determine the percentage that the number of
contracts executed in that series represents relative to the
disseminated size in that series (``series percentage''); (B) The
counting program will determine the sum of the series percentages in
the option issue (``issue percentage''); (C) Once the counting program
determines that the issue percentage equals or exceeds a percentage
established by the Phlx XL participant, not less than 100% (``Specified
Percentage''), the number of executed contracts in the option issue
equals the Specified Engagement Size. For example, if a Phlx XL
participant is quoting in four series of a particular option issue, and
sets its Specified Percentage at 100%, the Specified Engagement Size
would be determined as follows:

Example I

----------------------------------------------------------------------------------------------------------------
                                                                                Number of
                             Series                                    Size          contracts      Percentage
                                                                                executed
----------------------------------------------------------------------------------------------------------------
Series 1........................................................             100              40              40
Series 2........................................................              50              20              40
Series 3........................................................             200              20              10
Series 4........................................................             150              15              10
                                                                 -----------------
    Total.......................................................             500              95             100
----------------------------------------------------------------------------------------------------------------

    In this example the Specified Engagement Size is 95 contracts,
which is the aggregate number of contracts executed among all series
during the specified time period that represents an issue percentage
equal to the Specified Percentage of 100%.

Example II

----------------------------------------------------------------------------------------------------------------
                                                                                Number of
                             Series                                    Size          contracts      Percentage
                                                                                executed
----------------------------------------------------------------------------------------------------------------
Series 1........................................................             100               0               0
Series 2........................................................              50               0               0
Series 3........................................................             200               0               0
Series 4........................................................             150             150             100
                                                                 -----------------
    Total.......................................................             500             150             100
----------------------------------------------------------------------------------------------------------------

    In this example the Specified Engagement Size is 150 contracts,
which is the aggregate number of contracts executed among all series
during the specified time period that represents an issue percentage
equal to the Specified Percentage of 100%.
    If a Phlx XL participant is quoting in four series of a particular
option, and sets its Specified Percentage at 200%, the Specified
Engagement Size would be determined as follows:

Example III

----------------------------------------------------------------------------------------------------------------
                                                                                Number of
                             Series                                    Size          contracts      Percentage
                                                                                executed
----------------------------------------------------------------------------------------------------------------
Series 1........................................................             100              80              80
Series 2........................................................              50              40              80
Series 3........................................................             200              40              20
Series 4........................................................             150              30              20
                                                                 -----------------
    Total.......................................................             500             190             200
----------------------------------------------------------------------------------------------------------------

    In this example the Specified Engagement Size is 190 contracts,
which is the aggregate number of contracts executed among all series
during the specified time period that represents an issue percentage
equal to the Specified Percentage of 200%. The Specified Engagement
Size will be automatically offset by a number of contracts that are
executed on the opposite side of the market in the same option issue
during the specified time period (the ``Net Offset Specified Engagement
Size''). For example, a Phlx XL participant that buys calls and also
sells calls or buys puts in the same option during the specified time
period would have a Net Offset Specified Engagement Size as follows:

Example IV

----------------------------------------------------------------------------------------------------------------
                                                                   Sell call/buy    Net offset
             Series                    Size          Buy call           put            size         Percentage
----------------------------------------------------------------------------------------------------------------
Series 1........................             100              60              20              40              40
Series 2........................              50             100              80              20              40
Series 3........................             200             150             130              20              10
Series 4........................             150              75              60              15              10
                                 -----------------
    Total.......................             500             385             290              95             100
----------------------------------------------------------------------------------------------------------------

    The Net Offset Specified Engagement Size for each series is
determined by offsetting the number of contracts executed on the
opposite side of the market for each series during the specified time
period. The Risk Monitor Mechanism shall be engaged once the Net Offset
Specified Engagement Size is for a net number of contracts executed
among all series in an option issue during the specified time period
that

represents an issue percentage equal to or greater than the Specified
Percentage.
    (c) Any marketable orders, or quotes that are executable against a
Phlx XL participant's disseminated quotation that are received prior to
the time the Risk Monitor Mechanism is engaged will be automatically
executed at the disseminated price up to the Phlx XL participant's
disseminated size, regardless of whether such an execution results in
executions in excess of the Phlx XL participant's Specified Engagement
Size.
    (d) In the event that the specialist's quote is removed by the Risk
Monitor Mechanism and there are no other Phlx XL participants quoting
in the particular option, the system will automatically provide two-
sided quotes that comply with the Exchange's rules concerning quote
spread parameters on behalf of the specialist until such time as the
specialist revises the quotation. All quotations generated by the
Exchange on behalf of a specialist shall be considered ``firm
quotations'' and shall be the obligation of the specialist.
    (e) The system will automatically reset the counting program and
commence a new specified time period when:
    (i) A previous counting period has expired and a transaction occurs
in any series in such option; or
    (ii) The Phlx XL participant refreshes his/her quotation, in a
series for which an order has been executed (thus commencing the
specified time period) prior to the expiration of the specified time
period.
* * * * *

Obligations and Restrictions Applicable to Specialists and Registered
Options Traders

Rule 1014. (a) No change.
(b) ROT. (i) No change.
    (ii) (A)-(C) No change.
    (D) Market Making Obligations Applicable in Streaming Quote
Options. In addition to the other requirements for ROTs set forth in
this Rule 1014, an SQT and an RSQT shall be responsible to quote
continuous, two-sided markets in not less than 60% of the series in
each Streaming Quote Option (as defined in Rule 1080(k)) in which such
SQT or RSQT is assigned, provided that a Directed SQT or RSQT (as
defined in Rule 1080(l)(i)(C)) shall be responsible to quote
continuous, two-sided markets in not less than [100] 99% of the series
in each Streaming Quote Option in which they receive Directed Orders
(as defined in Rule 1080(l)(i)(A)). The specialist shall be responsible
to quote continuous, two-sided markets in not less than [100] 99% of
the series in each Streaming Quote Option in which such specialist is
assigned.
    (E) No change.
(c)-(h) No change.
Commentary: No change.
* * * * *

Openings in Options

Rule 1017. (a) No change.
(b) The system will calculate an Anticipated Opening Price (``AOP'')
and Anticipated Opening Size (``AOS'') when a quote or trade has been
disseminated by the primary market for the underlying security, and
under the conditions set forth below. The specialist assigned in the
particular option must enter opening quotes not later than one minute
following the dissemination of a quote or trade by the primary market
for the underlying security. An AOP may only be calculated if: (i) the
Exchange has received market orders, or the book is crossed (highest
bid is higher than the lowest offer) or locked (highest bid equals the
lowest offer); and (ii) either (A) the specialist's quote has been
submitted; (B) the quotes of at least two Phlx XL participants that are
required to submit continuous, two-sided quotes in [100] 99% of the
series in all option issues in which such Phlx XL participant is
assigned (``[100] 99% participants''), have been submitted within two
minutes of the opening trade or quote on the primary market for the
underlying security (or such shorter time as determined by the Options
Committee and disseminated to membership via Exchange Circular); or (C)
if neither the specialist's quote nor the quotes of two [100] 99%
participants have been submitted within two minutes of the opening
trade or quote on the primary market for the underlying security (or
such shorter time as determined by the Options Committee and
disseminated to membership via Exchange circular), one [100] 99%
participant has submitted their quote.
In situations where an AOP may be calculated and there is an order/
quote imbalance, the system will immediately send an imbalance notice
indicating the imbalance side (buy or sell) and the AOP and AOS (an
``Imbalance Notice'') to Phlx XL participants provided that the primary
market for the underlying security has disseminated the opening quote
or trade. Phlx XL participants that have not submitted opening quotes
will then submit their opening quotes, and Phlx XL participants that
have submitted opening quotes may submit revised opening quotes;
thereafter the system will disseminate an updated Imbalance Notice
every five seconds (or such shorter period as determined by the Options
Committee and disseminated to membership via Exchange Circular) until
the series is open. If no imbalance exists, no Imbalance Notice will be
sent, and the system will establish an opening price as described in
paragraph (c) below.
(c)-(d) No change.
(e) The system will not open a series if one of the following
conditions is met:
    (i) there is no quote from the specialist or a [100] 99%
participant;
    (ii)-(iii) No change.
(f)-(j) No change.
Commentary: No change.
* * * * *

Firm Quotations

Rule 1082. (a) (i) No change.
    (ii) (A)-(B) No change.
    (C)(1) If an SQT or RSQT's (other than a Directed SQT or RSQT)
quotation size in a particular series in a Streaming Quote Option is
exhausted or removed by the Risk Monitor Mechanism, such SQT or RSQT's
quotation shall be deleted from the Exchange's disseminated quotation
until the time the SQT or RSQT revises his/her quotation.
    (2) If the Exchange's disseminated size in a particular series in a
Streaming Quote Option is exhausted at that particular price level, and
no specialist, SQT or RSQT has revised their quotation immediately
following the exhaustion of the Exchange's disseminated size at such
price level, the Exchange shall automatically [disseminate the
specialist's most recent disseminated price prior to the time of such
exhaustion] provide two-sided quotes that comply with the Exchange's
rules concerning quote spread parameters on behalf of the specialist
until such time as the specialist revises the quotation, with a size of
one contract.
    (iii)-(iv) No change.
(b)-(d) No change.
Commentary: No change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it had received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below. The Phlx has prepared summaries, set forth in Sections
A, B, and C below, of the

most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to provide Phlx XL
participants protection from the unreasonable risk of multiple nearly
simultaneous executions. The risk to Phlx XL participants is not
limited to a single series in an option issue; Phlx XL participants
have exposure in all series of a particular option issue, requiring
them to offset or hedge their overall position in an option issue.
    Phlx XL participants submit proprietary electronic quotations in
options in which they are assigned based on proprietary pricing models
that rely on various factors such as the price and market volatility of
the underlying security. The Phlx XL participant's pricing model and
automated quotation system will continuously enter updated quotations
in all series of an option based on changes in the various factors
included in its pricing models. In addition to the Phlx XL
participant's own proprietary quoting system, the Risk Monitor
Mechanism would provide an additional tool to the Phlx XL participant
to help manage the risk associated with providing liquidity in a large
number of series across an option in which it is assigned.
    Specialists trading on Phlx XL, together with SQTs and RSQTs that
receive Directed Orders \8\ are currently required to submit
continuous, two-sided quotations in 100% of the series in each option
in which they are assigned.\9\ SQTs and RSQTs that do not receive
Directed Orders are required to submit continuous, two-sided quotations
in 60% of the series in each option in which they are assigned.\10\
Phlx XL participants are thus exposed to the possibility of near-
simultaneous executions that can create large, unintended principal
positions that expose the Phlx XL participant to unnecessary market
risk. Consequently, Phlx XL participants may be more likely to widen
their quotations, quote less aggressively, and limit their disseminated
size in order to address these risks. The Risk Monitor Mechanism is
intended to address these concerns by assisting Phlx XL participants in
managing their market risk.
---------------------------------------------------------------------------

    \8\ See Phlx Rule 1080(l).
    \9\ See Phlx Rule 1014(b)(ii)(D). The proposed rule change would
reduce the percentage quoting requirement as described more fully
below.
    \10\ Id.
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Phlx XL Risk Monitor Mechanism

    The Phlx XL Risk Monitor Mechanism would begin with a counting
program that would count the number of contracts traded in a particular
option by each Phlx XL participant within a specified time period
established by each Phlx XL participant (the ``specified time
period''). The specified time period would commence for an option when
a transaction occurs in any series in such option. The specified time
period may not exceed 15 seconds; Phlx XL participants may, however,
set the specified time period for less than 15 seconds.
    The system would engage the Risk Monitor Mechanism in a particular
option when the counting program has determined that a Phlx XL
participant has traded a Specified Engagement Size (as defined below)
established by such Phlx XL participant during the specified time
period. When such Phlx XL participant has traded the Specified
Engagement Size during the specified time period, the Risk Monitor
Mechanism would automatically remove such Phlx XL participant's
quotations from the Exchange's disseminated quotation in all series of
the particular option until such Phlx XL participant submits a new,
revised quotation.
    Specified Engagement Size. Each Phlx XL participant would establish
a Specified Engagement Size.\11\ When such Phlx XL participant has
traded the Specified Engagement Size during the specified time period,
the Risk Monitor Mechanism would automatically remove such Phlx XL
participant's quotations from the Exchange's disseminated quotation in
all series of the particular option.
---------------------------------------------------------------------------

    \11\ A Phlx XL participant could establish the Specified
Engagement Size as 100% or greater of the number of contracts
executed in each series during the specified time period relative to
the disseminated size. For example, a Phlx XL participant could
establish the Specified Engagement Size as 200%, in which case the
Risk Monitor Mechanism would not be engaged until 200% of the number
of contracts in each series have been executed during the specified
time period relative to the disseminated size. A Phlx XL participant
could also establish the Specified Engagement Size as, for example,
120%, in which case the Risk Monitor Mechanism would not be engaged
until 120% of the number of contracts in each series have been
executed during the specified time period relative to the
disseminated size. In any event, however, a Phlx XL participant may
not establish a Specified Engagement Size that is less than 100%.
---------------------------------------------------------------------------

    The Specified Engagement Size is determined as follows: For each
series in an option, the counting program would determine the
percentage that the number of contracts executed in that series
represents relative to the disseminated size in that series (the
``series percentage''). The counting program would then determine the
sum of the series percentages in the underlying option issue (the
``issue percentage''). Once the counting program determines that the
issue percentage equals or exceeds a percentage established by the Phlx
XL participant which may not be less than 100% (the ``Specified
Percentage''), the number of executed contracts in the option issue
equals the Specified Engagement Size.
    For example, if a Phlx XL participant is quoting in four series of
a particular option issue, and sets its Specified Percentage at 100%,
the Specified Engagement Size would be determined as follows:
Example I

----------------------------------------------------------------------------------------------------------------
                                                                                Number of
                             Series                                    Size          contracts      Percentage
                                                                                executed
----------------------------------------------------------------------------------------------------------------
Series 1........................................................             100              40              40
Series 2........................................................              50              20              40
Series 3........................................................             200              20              10
Series 4........................................................             150              15              10
                                                                 -----------------
    Total.......................................................             500              95             100
----------------------------------------------------------------------------------------------------------------

    In this example the Specified Engagement Size is 95 contracts,
which is the aggregate number of contracts executed among all series
during the specified time period that represents an issue percentage
equal to the Specified Percentage of 100%.
Example II

----------------------------------------------------------------------------------------------------------------
                                                                                Number of
                             Series                                    Size          contracts      Percentage
                                                                                executed
----------------------------------------------------------------------------------------------------------------
Series 1........................................................             100               0               0
Series 2........................................................              50               0               0
Series 3........................................................             200               0               0
Series 4........................................................             150             150             100
                                                                 -----------------
    Total.......................................................             500             150             100
----------------------------------------------------------------------------------------------------------------

    In this example the Specified Engagement Size is 150 contracts,
which is the aggregate number of contracts executed among all series
during the specified time period that represents an issue percentage
equal to the Specified Percentage of 100%.
    If a Phlx XL participant is quoting in four series of a particular
option, and sets its Specified Percentage at 200%, the Specified
Engagement Size would be determined as follows:
Example III

----------------------------------------------------------------------------------------------------------------
                                                                                Number of
                             Series                                    Size          contracts      Percentage
                                                                                executed
----------------------------------------------------------------------------------------------------------------
Series 1........................................................             100              80              80
Series 2........................................................              50              40              80
Series 3........................................................             200              40              20
Series 4........................................................             150              30              20
                                                                 -----------------
    Total.......................................................             500             190             200
----------------------------------------------------------------------------------------------------------------

    In this example the Specified Engagement Size is 190 contracts,
which is the aggregate number of contracts executed among all series
during the specified time period that represents an issue percentage
equal to the Specified Percentage of 200%.
    Offset on the Opposite Side of the Market. The Risk Monitor
Mechanism would calculate the number of contracts executed on one side
of the market during the specified time period, and offset that number
of contracts by the number of contracts executed on the opposite side
of the market during the specified time period. The purpose of this
provision is to account for the offset in risk of one option position
created by a position in the same option issue on the opposite side of
the market. Because the risk in such a situation is neutral, the
Exchange believes that Phlx XL participants should continue executing
contracts until the actual risk that is created by the Specified
Engagement Size is realized.
    The Specified Engagement Size would thus be automatically offset by
a number of contracts that are executed on the opposite side of the
market in the same option issue during the specified time period (the
``Net Offset Specified Engagement Size''). The Risk Monitor Mechanism
would be engaged when the Net Offset Specified Engagement Size is for a
number of contracts executed among all series during the specified time
period that represents an issue percentage that is equal to or greater
than the specified percentage. For example, a Phlx XL participant that
buys calls and also sells calls or buys puts in the same option during
the specified time period would have a Net Offset Specified Engagement
Size as follows:
Example IV

----------------------------------------------------------------------------------------------------------------
                                                                   Sell call/buy    Net offset
             Series                    Size          Buy call           put            size         Percentage
----------------------------------------------------------------------------------------------------------------
Series 1........................             100              60              20              40              40
Series 2........................              50             100              80              20              40
Series 3........................             200             150             130              20              10
Series 4........................             150              75              60              15              10
                                 -----------------
    Total.......................             500             385             290              95             100
----------------------------------------------------------------------------------------------------------------

    In this example, 675 contracts have been executed during the
specified time period (buy calls 385 + sell calls/buy puts 290). The
Net Offset Specified Engagement Size for each series is determined by
offsetting the number of contracts executed on the opposite side of the
market for each series during the specified time period. The Risk
Monitor Mechanism would be engaged once the Net Offset Specified
Engagement Size is executed for a net number of contracts among all
series during the specified time period that represents an issue
percentage that is equal to or greater than the specified percentage.
    Firm Quotations. In order to remain consistent with the Exchange's
rules concerning Firm Quotations,\12\ the proposed rule change would
provide that any marketable orders, or quotes that are executable
against a Phlx XL participant's disseminated quotation,

that are received prior to the time the Risk Monitor Mechanism is
engaged would be automatically executed at the disseminated price up to
the Phlx XL participant's disseminated size, regardless of whether such
an execution results in executions in excess of the Phlx XL
participant's Specified Engagement Size. Therefore, it is possible for
a Phlx XL participant to execute a number of contracts that is greater
than the Specified Engagement Size before the Risk Monitor Mechanism
removes their quote from the Exchange's disseminated market.
---------------------------------------------------------------------------

    \12\ See Phlx Rule 1082.
---------------------------------------------------------------------------

    Further, the proposed rule change would establish that, in the
event that the specialist's quote is exhausted or removed by the Risk
Monitor Mechanism, and there are no other Phlx XL participants quoting
in the particular option, the system would automatically provide two-
sided quotes that comply with the Exchange's rules concerning quote
spread parameters on behalf of the specialist until such time as the
specialist revises the quotation. All quotations generated by the
Exchange on behalf of a specialist would be considered ``firm
quotations'' and shall be the obligation of the specialist. The
Exchange proposes conforming changes to Rule 1082 to reflect this
situation.
    The purpose of this provision is to ensure that the Exchange
disseminates continuous quotations in all series traded on the
Exchange, even in situations where no Phlx XL participant is
disseminating its own quotations due to, for example, system
malfunctions. The Exchange believes that it should ``take control'' of
a Phlx XL participant's quotation only in limited circumstances (i.e.,
only when the Exchange's failure to do so would result in no
disseminated market from the Exchange), and that the Phlx XL
participants then quoting should determine the Exchange's disseminated
price and size.
    The Exchange proposes to amend Phlx Rule 1014(b)(ii)(D) to reduce
the obligation of specialists and Phlx XL participants that receive
Directed Orders \13\ to quote continuous, two-sided markets in not less
than 100% of the series in each option in which they are assigned. The
new obligation would be to quote in 99% of such series. The purpose of
this proposal is to make the Exchange's rules concerning quoting
requirements consistent with the Risk Monitor Mechanism's functionality
(i.e., the removal of individual specialist and Directed SQT and RSQT
quotations from the Exchange's disseminated market). If the quoting
obligation were to remain at 100% for these particular Phlx XL
participants, a rule violation would occur each time the Risk Monitor
Mechanism removes their quotation. Thus, the Exchange proposes to
reduce this obligation so that removal of individual quotations does
not result in violations of Exchange rules.
---------------------------------------------------------------------------

    \13\ See Phlx Rule 1080(l).
---------------------------------------------------------------------------

    For consistency, the Exchange proposes conforming amendments to
Phlx Rule 1017, Openings in Options, to change references to ``100%
participants'' and re-name them ``99% participants.''
    Re-Setting the Counting System. Finally, the proposed rule change
provides that the system would automatically reset the counting program
and commence a new specified time period when either: (i) a previous
counting period has expired and a transaction occurs in any series in
such option; or (ii) the Phlx XL participant refreshes his/her
quotation, in a series for which an order has been executed (thus
commencing the specified time period) prior to the expiration of the
specified time period.
    The commencement of the specified time period is event-driven,
i.e., upon the execution of a transaction in a particular series in an
option. The system would only initiate a specified time period when
such an execution occurs. If there is no activity in an option, the
system would not repeatedly commence and calculate the expiration of a
new specified time period for such option unnecessarily. Once an
execution occurs, however, a specified time period would commence.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act,\14\ in general, and furthers the objectives of
Section 6(b)(5) of the Act,\15\ in particular, in that it is designed
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest, by assisting Phlx XL participants in managing their
risk through the Risk Monitor Mechanism.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were either solicited or received.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-Phlx-2006-05 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-Phlx-2006-05. This
file number should be included on the subject line if e-mail 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 inspection
and copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the Phlx. 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 publicly available. All
submissions should refer to File Number SR-Phlx-2006-05 and should be
submitted on or before February 17, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

    After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations thereunder, applicable to a national
securities exchange.\16\ In particular, the Commission believes that
the proposed rule change is consistent with Section 6(b)(5) of the
Act,\17\ which requires among other things, that the rules of the
Exchange are designed to promote just and equitable principles of
trade, to remove impediments to and perfect the mechanism of a free and
open market and a national market system, and, in general, to protect
investors and the public interest. The Commission notes that the
proposal does not alter the obligations of Phlx XL participants, except
for the fact that it will reduce specialists and Phlx XL participants
that receive directed orders continuous quoting obligation from 100% of
the series in each option in which it is assigned to 99% of the series
in each option in which it is assigned. The Commission notes that this
reduction should provide specialists and Phlx XL participants that
receive directed orders a brief amount of time to update their quotes
after the Risk Monitor Mechanism removes their quotes from the
Exchange's disseminated quotation. In addition, the Commission believes
that the proposed rule change should provide Phlx XL participants
assistance in effectively managing their quotations.
---------------------------------------------------------------------------

    \16\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
    \17\ 15 U.S.C. 78f(b)(5).
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    The Phlx has requested that the Commission find good cause for
approving the proposed rule change prior to the thirtieth day after
publication of notice thereof in the Federal Register. The Commission
notes that similar proposals to provide protection from risk for market
makers have been approved for other options exchanges.\18\ The
Commission believes that granting accelerated approval of the proposal
should provide Phlx XL participants with similar protections from the
risk associated with an excessive number of near simultaneous
executions in a single options class. Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2) of the Act,\19\ for approving
the proposed rule change, as amended, prior to the thirtieth day after
the date of publication of notice thereof in the Federal Register.
---------------------------------------------------------------------------

    \18\ See Securities Exchange Act Release Nos. 51049 (January 18,
2005), 70 FR 3756 (January 26, 2005) (SR-BSE-2004-52); 51050
(January 18, 2005), 70 FR 3758 (January 26, 2005) (SR-ISE-2004-31);
and 51740 (May 25, 2005), 70 FR 32686 (June 3, 2005) (SR-PCX-2005-
64).
    \19\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\20\ that the proposed rule change (SR-Phlx-2006-05) and Amendment
No. 1 thereto be, and hereby are, approved on an accelerated basis.
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    \20\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-1017 Filed 1-26-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 79, Number 214 (Wednesday, November 5, 2014)]
[Notices]
[Pages 65651-65652]
[FR Doc No: 2014-26258]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of Revocation of Market-Based Rate Tariff

------------------------------------------------------------------------
                                                          Docket Nos.
------------------------------------------------------------------------
Electric Quarterly Reports...........................      ER02-2001-018
Bell Independent Power...............................      ER11-4577-000
BlueChip Energy LLC..................................      ER11-3467-000
Burgess Capital LLC..................................      ER11-4584-001
Caerus Energy, LLC...................................       ER13-167-002
D & L Harris and Associates..........................      ER12-2522-000
Dynamic PL, LLC......................................      ER11-4530-000
EconoPower, LLC......................................      ER13-1132-000
Energy Investments, LLC..............................      ER11-4468-000
FFC Energy, LLC......................................      ER11-4120-000
Fulcrum Power Marketing LLC..........................      ER10-2761-000
Glacial Energy Holdings..............................      ER11-3614-005
Intelligen Resources, L.P............................      ER12-2244-000
ISO Trader, LLC......................................      ER10-2650-000
Moguai Energy LLC....................................      ER11-4600-001
NDR Energy Group, LLC................................       ER13-454-002
People's Power & Gas, LLC............................      ER11-3753-001
Porter-Walker LLC....................................       ER13-327-001
QC Power Strategies Fund LLC.........................       ER13-354-001
RG Steel Sparrows Point LLC..........................      ER11-3547-002
RMH Energy, LP.......................................      ER10-2544-000
Smart Papers Holdings LLC............................        ER12-42-000
Thompson River Power, LLC............................      ER10-2988-002
Torofino Physical Trading LLC........................      ER11-3432-001

Visage Energy Corp...................................      ER12-2573-000
Vision Power Services, LLC...........................      ER11-4692-000
Vlast LLC............................................      ER12-1720-000
------------------------------------------------------------------------

    On October 9, 2014, the Commission issued an order announcing its
intent to revoke the market-based rate authority of the public
utilities listed in the caption of that order, which had failed to file
their required Electric Quarterly Reports.\1\ The Commission directed
those public utilities to file the required Electric Quarterly Reports
within 15 days of the date of issuance of the order or face revocation
of their authority to sell power at market-based rates and termination
of their electric market-based rate tariffs.\2\
---------------------------------------------------------------------------

    \1\ Electric Quarterly Reports, 149 FERC ] 61,023 (2014)
(October 9 Order).
    \2\ Id. at Ordering Paragraph A.
---------------------------------------------------------------------------

    The time period for compliance with the October 9 Order has
elapsed. The above-captioned companies failed to file their delinquent
Electric Quarterly Reports. The Commission hereby revokes the market-
based rate authority and terminates the electric market-based rate
tariffs of the companies who are named in the caption of this order.

    Dated: October 30, 2014.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014-26258 Filed 11-4-14; 8:45 am]
BILLING CODE 6717-01-P


SUPPORTING STATEMENT FOR EPA INFORMATION COLLECTION REQUEST NUMBER 2100.01 " REPORTING REQUIREMENTS UNDER EPA'S CLIMATE LEADERS PROGRAM"

February 27, 2003 TABLE OF CONTENTS 1. IDENTIFICATION OF THE INFORMATION COLLECTION .......................................... 1 1( a) TITLE AND NUMBER OF THE INFORMATION COLLECTION ........................ 1 1( b) SHORT CHARACTERIZATION / ABSTRACT .................................................. 1 2. NEED FOR AND USE OF THE COLLECTION ............................................................ 1 2( a) NEED / AUTHORITY FOR THE COLLECTION ................................................ 1 2( b) PRACTICAL UTILITY/ USERS OF THE DATA .................................................. 2 3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA ...... 2 3( a) NONDUPLICATION .......................................................................................... 2 3( b) PUBLIC NOTICE REQUIRED PRIOR TO ICR SUBMISSION TO OMB ............ 2 3( c) CONSULTATIONS ........................................................................................... 2 3( d) EFFECTS OF LESS FREQUENT COLLECTION ............................................. 2 3( e) GENERAL GUIDELINES .................................................................................. 3 3( f) CONFIDENTIALITY .......................................................................................... 3 3( g) SENSITIVE QUESTIONS ................................................................................. 3 4. THE RESPONDENTS AND THE INFORMATION REQUESTED ................................. 3 4( a) RESPONDENTS NAICS CODES ..................................................................... 3 4( b) INFORMATION REQUESTED .......................................................................... 3 5. THE INFORMATION COLLECTED AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT ........................................... 5 5( a) AGENCY ACTIVITIES ...................................................................................... 5 5( b) COLLECTION METHODOLOGY AND MANAGEMENT ................................... 6 5( c) SMALL ENTITY FLEXIBILITY ........................................................................... 6 5( d) COLLECTION SCHEDULE ............................................................................... 7 6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION ............................... 7 6( a) ESTIMATING RESPONDENT BURDEN .......................................................... 7 6( b) ESTIMATING RESPONDENT COSTS ............................................................. 7 6( c) ESTIMATING AGENCY BURDEN AND COST ................................................ 7 6( d) ESTIMATING THE RESPONSIBLE UNIVERSE AND TOTAL BURDEN AND COSTS ..................................................................... 10 6( e) BOTTOM LINE BURDEN HOURS AND COSTS ............................................ 10 6( f) REASONS FOR CHANGE IN BURDEN ......................................................... 11 6( g) BURDEN STATEMENT .................................................................................. 11 1 1. IDENTIFICATION OF THE INFORMATION COLLECTION 1( a) Title and Number of the Information Collection This ICR is entitled " Reporting Requirements Under EPA's Climate Leaders Program," EPA ICR Number 2100.01.

1( b) Characterization of the Information Collection Climate Leaders is an EPA sponsored voluntary program that encourages companies to develop a corporate GHG inventory and to establish greenhouse gas ( GHG) reduction goals. Partners in the program benefit from participation by receiving public recognition from EPA for achieving progress toward their GHG reduction goals. Partners also receive assistance in the form of identification of new cost effective GHG reduction opportunities. The program is run through EPA's Climate Protection Partnerships Division ( CPPD) in the Office of Air & Radiation.

Participation in the program begins with the submittal to EPA of a Letter of Intent ( LOI) that outlines responsibilities of the Climate Leaders Partner and EPA. The LOI begins a partnership between the Climate Leaders Partner and EPA wherein the Partner agrees to develop a corporate GHG inventory and to report this inventory annually to EPA using Climate Leaders Reporting Forms. To reduce the burden on Partners, EPA provides technical support during each step of the corporate GHG inventory and reporting process. Upon completion of their inventory, Partners then agree to set GHG reduction goals. Partners are encouraged to publicize their involvement in the program, and EPA provides additional opportunities for public recognition to Partners who meet or exceed their goals. The LOI agreement can be terminated by the Climate Leaders Partner or EPA with no notice or penalties.

This ICR provides a comprehensive description of the information collections under the Climate Leaders program. Sections 1 through 5 of this ICR describe the specific information collections ( e. g., from the standpoint of need, use, and respondent activities). In Section 6, EPA estimates the annual hour and cost burden to respondents and the Agency under these collections.

2. NEED FOR AND USE OF THE COLLECTION 2( a) Need/ Authority for the Collection In an effort to mitigate global climate change, the President announced a Climate Change Strategy on February 14, 2002, wherein he set a national U. S. GHG intensity goal of 18 percent by 2012. Part of that strategy challenges companies to set GHG reduction goals by working with EPA through the Climate Leaders program.

To formally establish participation in the Climate Leaders program, EPA collects general company information in the LOI. This information typically includes the identification of a company Liaison and other contact information. 2 EPA also provides technical assistance to Partners to help them develop companyspecific GHG inventories using standardized Climate Leaders Reporting Forms. Partners report their GHG inventory to EPA annually, and this information allows EPA to evaluate a Partner's progress and performance, and to assess overall program results.

2( b) Practical Utility/ Users of the Data EPA uses information submitted in the LOI to set up a database of Partner contact information, which facilitates information dissemination to Partners. EPA uses information submitted in the GHG inventory Reporting Forms to monitor the progress of Partners in reducing GHG emissions, in order to provide them with credible public recognition when they meet or exceed their goal. EPA also uses this information to provide technical assistance.

3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA 3( a) Nonduplication The information to be obtained under this ICR has not been collected by EPA or any other Federal agency, nor is it available from any other source.

3( b) Public Notice Required Prior to ICR Submission to OMB In compliance with the Paperwork Reduction Act of 1995 ( PRA), EPA solicited public comments on the ICR through an announcement in the Federal Register ( 67 FR 117, June 18, 2002). The comment period closed on August 19, 2002. Two companies provided comments. Both companies requested that EPA provide flexibility in reporting and that EPA work to harmonize with other GHG reporting schemes. Since the first Federal Register notice, EPA held a meeting in October 2002 with Climate Leaders Partners and is working to provide additional flexibility in the Reporting Forms. EPA also continues to harmonize with State, Federal, and international GHG reporting schemes in order to minimize reporting burdens on companies that participate in more than one reporting scheme.

3( c) Consultations EPA consulted with six Climate Leaders Partners to obtain their views on this method of data collection and obtained their input on the burden estimate. Organizations consulted included:

° Miller Brewing Company, Quinton Hancock, tel. 414 931 3570 ° PSEG, Mark Brownstein, tel. 973 430 7196 ° BP p. l. c. Corporation, Denise Michaelson, tel. 213 486 0709 ° General Motors Corporation, Kristen Zimmerman, tel. 313 665 9164 ° Norm Thompson Outfitters, Derek Smith, email dsmith@ nortom. com ° National Renewable Energy Laboratory, Dan Bilello, email dan_ bilello@ nrel. gov 3 3( d) Effects of Less Frequent Collection The development of an LOI is a one time information submittal from companies that choose to become Partners. EPA also asks Partners to prepare and submit an annual GHG inventory via Climate Leaders Reporting Forms. EPA believes that any reduction in the frequency of this information collection would impede efforts by EPA to evaluate results of the program and to provide credible public recognition. Further, since this is a voluntary program, ongoing evaluation of results is critical to the program's success.

3( e) General Guidelines This information collection request was prepared in compliance with OMB's implementing regulations and EPA's guidelines for ICR preparation.

3( f) Confidentiality Participation in Climate Leaders is voluntary. For Partners that are concerned about data confidentiality, EPA will consider proposals whereby these Partners can keep data confidential by designating a third party to house their Reporting Forms. EPA will be able to review that data annually by making an on site visit to ensure credibility. Another alternative that EPA offers Partners is to have a third party conduct a credible GHG inventory audit, and provide that audit to EPA for review. EPA will not make company or agency specific information collected under this ICR and claimed as confidential business information (" CBI") available to the general public without a Partner's permission, except in accordance with EPA's CBI regulations at 40 CFR, Part 2, subpart B. If a Partner asserts a claim of confidentiality covering all or part of the information collections covered in this ICR, EPA must and will treat the information in accordance with these regulations. EPA will also ensure that the information collections comply with the Privacy Act of 1974 and OMB Circular 108.

3( g) Sensitive Questions No questions of a sensitive nature are asked in the LOI or the Reporting Forms.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED 4( a) Respondents/ NAICS Codes The following is a list of North American Industry Classification System ( NAICS) codes and associated industries that may be affected by information collections covered in this ICR:

Industry Sector NAICS Code Chemicals ( except agriculture) 422690 Primary Metal Manufacturing 331 Breweries 313120 4 Industry Sector NAICS Code Cement and Concrete Product Manufacturing 3273 Carpet and Rug Mills 314110 Oil & Gas Extraction 211 Petroleum Refineries 324110 Motor Vehicle Manufacturing 3362 Electric Power Generation, Transmission and Distribution 2211 Clothing Stores 4481 4( b) Information Requested EPA asks all Partners to develop and submit a simple, one page Letter of Intent to indicate their intention to participate in the program. Partners also submit Climate Leaders Reporting Forms on an annual basis. The Reporting Forms document a Partner's GHG emissions in the past year. EPA uses this data, combined with the company's goal, baseline emissions, and previous inventories to track Partners' progress toward their GHG reduction goals.

Letter of Intent EPA asks Climate Leaders Partners to develop and submit an LOI.

( i) Data items:

Partners provide the following information in the LOI:

° The name, title, address, and telephone, email address and facsimile number of a Liaison; and ° The name, address, and telephone number of the Partner's CEO, President, or Chairman, if applicable.

( ii) Respondent activities:

In developing the LOI, Partners perform the following activities:

° Receive and review the LOI;

° Gather address and contact information to complete the LOI; and ° Sign the LOI and submit it to EPA. 5 GHG Inventory Protocol Reporting Forms In order to assist the Agency in evaluating whether Partners are on track to meet their GHG reduction targets, EPA asks Partners to complete and submit Climate Leaders GHG inventory protocol Reporting Forms annually. Partners that are on track to meet their targets are given high level public recognition to champion their achievements.

( i) Data items:

The Partner submits the following information in the Reporting Forms:

° Entity wide energy use data and/ or emissions data from the company's operations.

( ii) Respondent activities:

Partners conduct the following activities in preparing the Reporting Forms:

° Review the data requirements and previous inventories;

° Gather the requested data and other information for the report;

° Complete and compile the individual forms; and ° Sign and submit the forms to EPA.

Note: EPA provides a variety of forms of technical assistance to help Partners complete their Reporting Forms, including on site visits to collect and calculate data, assistance filling out the forms, and assistance using electronic tools such as spreadsheets.

Additional Activities During participation in the program, Partners may be requested to notify EPA of any change, such as a change in Climate Leaders Liaison.

( i) Data items:

° Changes in information, such as the name of a new liaison or change in address.

( ii) Respondent activities:

° Provide EPA with new information, such as the name of a new liaison or change in address. 6 5. THE INFORMATION COLLECTED AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT 5( a) Agency Activities EPA performs various activities after a Partner submits the LOI and Reporting Forms.

Letter of Intent EPA performs the following activities following the submittal of an LOI:

° Participate in calls with Partners;

° Review the LOI to ensure completeness and accuracy, and follow up, if necessary; and ° Enter LOI information into a contact tracking data base.

Reporting Forms EPA performs the following activities after the submittal of a Partner's GHG inventory protocol Reporting Forms:

° Review the forms to ensure completeness and accuracy, and conduct follow up, if necessary;

° Work with Partners to publicize their progress towards their GHG goal; and ° Enter information into database.

Additional Activities EPA may also perform the following additional activities:

° Enter any changes in Partner's information, such as the name of a new Liaison, into a database. 7 5( b) Collection Methodology and Management In collecting and analyzing the information associated with this ICR, EPA uses a stateof the art telephone system, personal computers, and applicable data base and modeling software. EPA will ensure the accuracy and completeness of collected information by reviewing each submittal. EPA will enter the contact information obtained from the LOI into a data base, and will use the Climate Leaders Inventory Protocol Reporting Forms to monitor the progress of Partners in reducing GHGs in order to ensure credibility when providing Partners with public recognition for meeting their GHG reduction goals.

5( c) Small Entity Flexibility Because Climate Leaders is designed primarily for large industrial and commercial companies, EPA expects that less than 5 of the Climate Leaders Partners will be small entities ( having fewer than 1,000 employees). EPA has designed its program to minimize respondent burden while obtaining sufficient and accurate information. In addition, the burden associated with Climate Leaders is inherently reduced since the agreement to participate is voluntary.

5( d) Collection Schedule EPA collects initial contact information via the LOI, which is completed and submitted by each Partner upon agreement to participate in the program. EPA collects information annually via the Climate Leaders Inventory Protocol Reporting Forms to monitor progress. Finally, EPA may collect other program information on a periodic basis or as the information is submitted; these items include notification of changes in Liaison and notification of changes in a Partner's operations.

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION 6( a) Estimating Respondent Burden EPA consulted with fewer than nine members of the respondent universe to estimate the burden associated with participation in Climate Leaders. EPA then reviewed comments received during the comment period. Exhibit 1 presents the estimated annual respondent burden for information collection activities associated with Climate Leaders.

6( b) Estimating Respondent Costs Labor Costs For purposes of this analysis, EPA estimates an average hourly respondent labor cost ( including fringe and overhead) of $ 178 for legal staff, $ 106 for managerial staff, $ 80 for technical staff, and $ 41 for clerical staff. These rates are based on data gathered through consultations with Climate Leaders Partners. 8 1 Based on current market prices ( January 2003). Capital Costs Capital costs usually include any produced physical good needed to provide the needed information, such as machinery, computers, and other equipment. EPA anticipates that Partners will compile data via existing spreadsheet software programs;. Therefore, new data management systems will not be needed. However, EPA anticipates that there will be some capital costs related to the purchase of file cabinets for retaining GHG inventory data in file cabinets. EPA took the following steps to estimate the cost of the file cabinets:

Estimate the number of file cabinets per Partner needed for the information repository. Given that the standard size, five drawer, lateral file cabinet is expected to hold approximately 16,000 pages of material, EPA estimates that each Partner would need to purchase only one file cabinet to retain copies of the applications and other documentation within the time period of this ICR. The approximate cost of purchasing a file cabinet is estimated at $ 580.1

Calculate the annualized cost. EPA used the following formula to calculate the annual cost for acquiring a file cabinet:

Annualized Net Present Value = $ 580 x [ 1/(  1/( 1+ k) t)]

where: k = discount rate of 7 percent; and t = length of longest Partner GHG goal ( 10 years).

EPA estimates that each Partner will pay an annual cost of $ 83 for its file cabinet. This capital cost is shown in Exhibit 1.

Operation and Maintenance Costs Operation and maintenance ( O& M) costs are those costs associated with an information collection incurred continually over the life of the ICR. They are defined by the PRA as " the recurring dollar amount of costs associated with O& M or purchasing services." EPA does not anticipate that Partners will incur O& M costs in carrying out the information collections covered in this ICR.

6( c) Estimating Agency Burden and Cost Exhibit 2 presents the estimated Agency burden hours and costs for the information collection activities associated with this ICR. EPA estimates an average hourly labor cost ( labor plus overhead) of $ 70.82 for legal staff, $ 66.22 for managerial staff, $ 48.55 for technical staff, and $ 21.73 for clerical staff. To derive these hourly estimates, EPA first obtained salary figures for the following government service levels in the 2002 Federal Pay Schedule:

° Legal Staff GS 15, Step 1; 9 2 Note that the number of new Partners is expected to decline over the three years because there are a limited number of large companies in the industrial sector that can be expected to make GHG reduction targets. ° Managerial Staff GS 14, Step 4; ° Technical Staff GS 12, Step 5; and ° Clerical Staff GS 6, Step 1.

EPA then divided annual compensation estimates by 2,080, which is the number of hours in the Federal work year. EPA then multiplied hourly rates by the standard Federal government overhead factor of 1.6.

6( d) Estimating the Respondent Universe and Total Burden and Costs Currently, there are 37 Partners in the Climate Leaders program. As seen in the table below, EPA anticipates that, over the three year period of this ICR, 45 additional companies ( i. e., 20 + 15+ 10 = 45) will join the Program. 2 This results in a total of 82 Partners in the Program at the end of the three years.

Respondent Universe 2003 2004 2005 Average Existing Partners at the beginning of the year 37 57 72 55 New Partners during the year 20 15 10 15 Partners submitting inventories at the end of the year 37 57 72 55 In the following paragraphs, EPA describes the data and assumptions used in estimating annual hour and cost burden to Partners under the Climate Leaders program.

Letter of Intent Each company seeking to become a Partner signs and submits an LOI to EPA to participate in the program. EPA estimates that, on average, 15 new Partners will submit an LOI each year during the three year period covered in this ICR.

GHG Reporting Forms All Partners are asked to complete and submit an annual GHG inventory via the Climate Leaders Reporting Forms only after one year of participation in the program. Due to this one year time lag, EPA estimates that, on average, 55 Partners will submit GHG Reporting Forms each year during the three year period covered in this ICR. 10 Additional Activities EPA expects that some additional information submittals may be requested of some Partners. EPA's experience with other voluntary programs indicates that approximately 10 percent of all Partners experience a change, such as in their company Liaison, each year. Thus, EPA estimates that, each year, seven Partners ( i. e., average of 70 Partners in the Program over the three years x 0.10 = 7) will notify EPA of a change. 11 EXHIBIT 1 ESTIMATED ANNUAL RESPONDENT BURDEN AND COST Hours and Costs Per Respondent Per Activity Total Hours and Costs Leg. Mgr. Tech. Cler. Respon. Labor Capital/ Number of Total $ 178/ $ 106/ $ 80/ $ 41/ Hours/ Cost/ Startup O & M Respondts Total Cost/

INFORMATION COLLECTION ACTIVITY Hour Hour Hour Hour Year Year Cost Cost Hours/ Year Year Receive and review the LOI 0.5 3.0 1.5 0.0 5.0 $ 527 $ 0 $ 0 70 350 $ 36,890 Gather address and contact information to complete LOI 0.0 0.0 0.5 0.0 0.5 $ 21 $ 0 $ 0 70 35 $ 1,470 Sign and submit LOI to EPA 0.5 1.0 1.0 0.0 2.5 $ 275 $ 0 $ 0 70 175 $ 19,250 SUBTOTAL 1.0 4.0 3.0 0.0 8.0 $ 823 $ 0 $ 0 70 560 $ 57,610 Review the data requirements and previous inventories 1.0 2.0 10.0 0.0 13.0 $ 1,190 $ 0 $ 0 55 715 $ 65,450 Gather the requested data and other information for the report 0.0 0.0 40.0 0.0 40.0 $ 3,200 $ 0 $ 0 55 2,200 $ 176,000 Complete and compile the individual forms 0.0 0.0 20.0 0.0 20.0 $ 1,600 $ 0 $ 0 55 1,100 $ 88,000 Sign and submit the forms to EPA 0.0 5.0 0.0 2.0 7.0 $ 612 $ 0 $ 0 55 385 $ 33,660 SUBTOTAL 1.0 7.0 70.0 2.0 80.0 $ 6,602 $ 0 $ 0 55 4,400 $ 363,110 Provide EPA with new information 0.00 0.00 2.00 0.00 2.00 $ 160 $ 0 $ 0 7 14 $ 1,120 Purchase file cabinets 0.00 0.00 0.00 2.00 2.00 $ 82 $ 83 $ 0 70 140 $ 11,550 TOTAL varies varies varies varies varies varies varies $ 0 varies 5,114 $ 433,390 Letter of Intent GHG Inventory Protocol Reporting Forms Additional Activities File Cabinets 12 EXHIBIT 2 ESTIMATED ANNUAL AGENCY BURDEN AND COST Hours and Costs Per Respondent Per Activity Total Hours and Costs Number of Leg. Mgr. Tech. Cler. Respon. Labor Capital/ Respondts Total Total $ 63.31/ $ 59.20/ $ 43.41/ $ 19.42/ Hours/ Cost/ Startup O & M Hours/ Cost/

INFORMATION COLLECTION ACTIVITY Hour Hour Hour Hour Year Year Cost Cost Year Year Participate in calls with Partners 2.00 8.00 6.00 0.00 16.00 $ 861 $ 0 $ 0 70 1,120 $ 60,270 Review the LOI and follow up, if necessary 0.00 2.00 4.00 0.00 6.00 $ 292 $ 0 $ 0 70 420 $ 20,440 Enter LOI contact information into database 0.00 0.00 0.00 4.00 4.00 $ 78 $ 0 $ 0 70 280 $ 5,460 SUBTOTAL 2.00 10.00 10.00 4.00 26.00 $ 1,231 $ 0 $ 0 70 1,820 $ 86,170 Review forms and conduct follow up, if necessary 0.00 6.00 20.00 0.00 26.00 $ 1,223 $ 0 $ 0 55 1,430 $ 67,265 Work with Partners to publicize their GHG goal 1.00 6.00 8.00 0.00 15.00 $ 766 $ 0 $ 0 55 825 $ 42,130 Enter information into database 0.00 0.00 2.00 0.00 2.00 $ 87 $ 0 $ 0 55 110 $ 4,785 SUBTOTAL 1.00 12.00 30.00 0.00 43.00 $ 2,076 $ 0 $ 0 55 2,365 $ 114,180 Enter any changes into database 0.00 0.00 0.00 2.00 2.00 $ 39 $ 0 $ 0 7 14 $ 273 TOTAL varies varies varies varies varies varies $ 0 $ 0 varies 4,199 $ 200,623 Additional Activities Letter of Intent GHG Inventory Protocol Reporting Forms 13 6( e) Bottom Line Burden Hours and Costs Respondent Tally Exhibit 1 shows the total annual hour and cost burden to respondents. As shown in the exhibit, EPA estimates the annual respondent burden to be 5,114 hours and $ 433,390. The bottom line burden to respondents over three years is estimated to be 15,342 hours and $ 1,300,170.

Agency Tally Exhibit 2 shows the total annual hour and cost burden to the Agency. As shown in this exhibit, EPA estimates the annual Agency burden to be 4,199 hours and $ 200,623. The bottom line burden to the Agency over three years in estimated to be 12,597 hours and $ 601,869.

6( f) Reasons for Change in Burden The burden outlined below for the information collection envisioned under this ICR is necessary to help the Agency's determine whether Climate Leaders is achieving its goals under the Administration's Climate Strategy. The activities undertaken by Partners in Climate Leaders are anticipated to offset some of this burden as Partners identify new emission reduction opportunties that result in savings to the company through, for example, enhanced energy efficiency.

6( g) Burden Statement The estimated average reporting burden for each Climate Leaders Partner to complete and submit an LOI is 8 hours. The burden estimate includes time to receive, review, sign, and submit the LOI.

The estimated average reporting burden to prepare and submit Climate Leaders inventory protocol Reporting Forms for each Climate Leaders Partner is estimated to be 80 hours. The burden estimate includes time to review the requirements, gather the requested data and other information, complete the Reporting Forms, and submit the report to EPA.

The annual public reporting and recordkeeping burden f or this collection of information is estimated to average 88 hours per response. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection 14 of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR part 9 and 48 CFR chapter 15.

To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID No. OAR 2002 0094, which is available for public viewing at the Air and Radiation Docket and Information Center, in the EPA Docket Center ( EPA/ DC), EPA West, Room B102, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public Reading Room is open from 8: 30 a. m. to 4: 30 p. m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is ( 202) 566 1744, and the telephone number for the Air Docket is ( 202) 566 1742. An electronic version of the public docket is available through EPA Dockets ( EDOCKET) at http:// www. epa. gov/ edocket. Use EDOCKET to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically. Once in the system, select " search," then key in the docket ID number identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office for EPA. Please include the EPA Docket ID No. ( OAR 2002 0094).


[Federal Register: August 18, 2010 (Volume 75, Number 159)]
[Notices]
[Page 51161]
[DOCID:fr18au10-183]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

Sunshine Act Meetings; Unified Carrier Registration Plan Board of
Directors

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

TIME AND DATE: September 9, 2010, 12 noon to 3 p.m., Eastern Daylight
Time.

PLACE: This meeting will take place telephonically. Any interested
person may call<PHONE_NUMBER> passcode 4856462 to participate in this
meeting by telephone.

STATUS: Open to the public.

MATTERS TO BE CONSIDERED: The Unified Carrier Registration Plan Board
of Directors (the Board) will continue its work in developing and
implementing the Unified Carrier Registration Plan and Agreement and to
that end, may consider matters properly before the Board.

FOR FURTHER INFORMATION CONTACT: Mr. Avelino Gutierrez, Chair, Unified
Carrier Registration Board of Directors at<PHONE_NUMBER>.

    Issued on: August 16, 2010.
Larry W. Minor,
Associate Administrator for Policy and Program Development.
[FR Doc. 2010-20590 Filed 8-16-10; 4:15 pm]
BILLING CODE 4910-EX-P