UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

WASHINGTON, D.C.  20460

	OFFICE OF CHEMICAL SAFETY

	AND POLLLUTION PREVENTION

  SEQ CHAPTER \h \r 1 MEMORANDUM

Date:  11/17/10

SUBJECT:	Fluoxastrobin.  Petition for the Establishment of Permanent
Tolerances for Uses on Squash/Cucumber Subgroup 9B.  Summary of
Analytical Chemistry and Residue Data.

PC Code:  028869	DP Barcode:  380846

Decision No.:  433137 	Registration No.:  66330-64

Petition No.:  NA	Regulatory Action:  Section 3 Registration

Risk Assessment Type:  NA	Case No.:  NA

TXR No.:  NA	CAS No.:  361377-29-9

MRID No.:  48088301	40 CFR:  180.609

FROM:	Meheret Negussie, Chemist

		Risk Assessment Branch III

		Health Effects Division (HED 7509P)  SEQ CHAPTER \h \r 1

THROUGH:	Leung Cheng, Senior Chemist

		Risk Assessment Branch III

		Health Effects Division (HED 7509P)

TO:		Nancy Tsaur, Risk Assessor

		RAB III/HED (HED 7509P)

			and

		Tony Kish, RM# 22

		Fungicide Branch		  SEQ CHAPTER \h \r 1   SEQ CHAPTER \h \r 1

		Registration Division (RD 7505P)

  SEQ CHAPTER \h \r 1   SEQ CHAPTER \h \r 1

Executive Summary

Fluoxastrobin is a fungicide used for the control of fungal diseases in
tuberous and corm vegetables, fruiting vegetables, the leaf petiole
vegetables, peanuts, low growing berries, field corn, wheat, soybeans,
peanuts, and as a seed treatment for potato and peanut, and as a
soilborne/seedling disease control.  It works by interfering with
respiration in plant-pathogenic fungi and is a potent inhibitor of spore
germination and mycelial growth.  It belongs to the strobilurin class of
fungicides (Group 11), also termed methoxyacrylates.  Fluoxastrobin is
the accepted common name for the pesticidally active E isomer of
[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dihydro-
1,4,2-dioxazin-3-yl)methanone O-methyloxime.  The Z-isomer of
fluoxastrobin is typically present at much lower levels (E:Z ratio of
approximately 90:10).  The petitioner has requested that fluoxastrobin
(E-isomer only) be designated as the active ingredient.

Arysta LifeScience North America (Arysta) is proposing the establishment
of tolerances for combined residues of the fungicide fluoxastrobin
(1E)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime and its Z-isomer
(1Z)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime in/on the following raw
agricultural commodities:

Crop subgroup 9B Squash/Cucumbers	0.50 ppm

In conjunction with this petition, Arysta is requesting amended
registration of the 4 lb ai/gal suspension concentrate (SC) formulation
of fluoxastrobin, Fluoxastrobin 480 SC Fungicide (EPA Reg. No.
66330-64), to add uses on squash/cucumber subgroup 9B.  The product is
proposed for up to four foliar applications to squash/cucumber subgroup
9B at up to 0.16 lb ai/A/application for a total application rate of
0.68 lb ai/A; a 1-day preharvest interval (PHI) is proposed.  For
soilborne disease control, a rate of 0.16-0.24 fl. oz./1000 row feet (
0.005-0.075 lb ai/A) is proposed.

Tolerances for combined residues of fluoxastrobin and its Z-isomer in/on
primary crop

commodities are established under 40 CFR §180.609(a)(1) at levels
ranging from 0.010 ppm (peanut and the tuberous and corm vegetable
subgroup 1C) to 20.0 ppm (peanut hay).  Tolerances are established under
 SEQ CHAPTER \h \r 1  40 CFR §180.609(a)(2) for the combined residues
of fluoxastrobin, its Z-isomer, and its phenoxy-hydroxypyrimidine
metabolite, 6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinol, in cattle, goat,
horse, and sheep commodities at levels ranging from 0.02 ppm (milk) to
0.50 ppm (milk fat); no tolerances are currently established for poultry
commodities.  Tolerances for indirect or inadvertent combined residues
of fluoxastrobin and its Z-isomer are established under 40 CFR   SEQ
CHAPTER \h \r 1 §180.609(d) for rotated crop commodities [alfalfa
forage and hay; cotton gin byproducts; forage, fodder, and straw of
cereal grains except corn (crop group 16); grass forage and hay; and
foliage of legume vegetables (crop group 7)] at 0.020-0.50 ppm.

The nature of the residue in plants and livestock is adequately
understood.  In plants, the results of metabolism studies conducted on
wheat, peanut, and tomato indicate that metabolism of fluoxastrobin is
similar in dissimilar crops.  HED has concluded that the residues of
concern for risk assessment and tolerance setting purposes are
fluoxastrobin and its Z-isomer.  Acceptable metabolism studies on goats
and laying hens are also available.  The available data indicate that
the metabolism in goats and hens is similar.  Metabolism of
fluoxastrobin was found to be more extensive in livestock than in
plants, and metabolites consisting of single rings (e.g., 2-chlorophenol
and 2-cyanophenol) were observed in each of the livestock metabolism
studies.  HED has concluded that in livestock commodities, the residues
of concern are fluoxastrobin, its Z-isomer, and the
phenoxy-hydroxypyrimidine metabolite (HEC 7154) for risk assessment and
tolerance setting purposes.

Acceptable high performance liquid chromatography methods with tandem
mass spectroscopic detection (LC/MS/MS) are available for tolerance
enforcement for plant and livestock commodities.  Bayer AG method 00604
and confirmatory method 00946 have been adequately validated for the
determination of residues of fluoxastrobin and its Z-isomer in plant
commodities, and Bayer AG method 00691 and confirmatory method 00945
have been adequately validated for determination of fluoxastrobin, its
Z-isomer, and HEC 7154 in ruminant commodities.

Samples from the submitted crop field trials were analyzed for residues
of fluoxastrobin and its Z-isomer using an acceptable LC/MS/MS method.
Samples of cucumber and squash were analyzed using Bayer AG Method
00668.  The method was adequately validated prior to and/or in
conjunction with the analysis of the field trial.  The validated limit
of quantitation (LOQ) was 0.01 ppm for combined residues of
fluoxastrobin and its Z-isomer in/on all crop commodities.

Adequate multiresidue methods testing data have been submitted.  The
data indicate that the multiresidue methods are not adequate for
enforcement of tolerances for fluoxastrobin.

Adequate storage stability data are available to support storage
conditions and intervals of samples from the cucumber and squash field
trials.

There are no livestock feedstuffs associated with the proposed uses on
squash/cucumber subgroup 9B.

The submitted crop field trial data for cucumbers and summer squash
reflect the proposed use patterns and are acceptable pending submission
of a revised label and an additional field trial data for cucumber in
region 2.  The submitted data will support the proposed tolerances for
Squash/cucumber subgroup 9B at 0.5 ppm.

The nature of the residue in rotational crops is understood based on an
adequate confined rotational crop study.  HED has concluded that the
residues of concern for rotational crops for risk assessment and
tolerance setting purposes are fluoxastrobin and its Z-isomer.  Adequate
field rotational crop data are available which indicate that residues of
fluoxastrobin and its Z-isomer may accumulate in rotated crops.  The
available data support the established tolerances for indirect or
inadvertent residues established under 40 CFR 180.609(d), and indicate
that the following rotational crop restrictions are appropriate for
fluoxastrobin:  a 0-day plantback interval (PBI) for any crop listed on
the label; a 30-day PBI for the root vegetables subgroup (e.g., carrot,
radish, sugar beet, and turnip), bulb vegetables (e.g., onion and
garlic), leafy greens subgroup (e.g., lettuce and spinach), Brassica
vegetables (e.g., broccoli, cauliflower, cabbage, and mustard greens),
alfalfa, cotton, legume vegetables (dry and succulent peas and beans),
cereal grains, and forage grasses; and a 12-month PBI for all other
crops.

There are no Codex, Canadian, or Mexican maximum residue limits (MRLs)
established for fluoxastrobin.

Regulatory Recommendations and Residue Chemistry Deficiencies

HED has examined the residue chemistry database for fluoxastrobin.
Pending submission of revised Sections B, F, and resolution of the
deficiencies identified below, there are no residue chemistry issues
that would preclude granting conditional registration for the requested
uses of fluoxastrobin on squash/cucumber subgroup 9B or establishment of
the following tolerances for combined residues of fluoxastrobin and its
Z-isomer:

Squash/cucumber subgroup 9B	0.50 ppm

A human health risk assessment is forthcoming.

Note to PM:  According to HED’s Interim Guidance on Tolerance
Expressions (5/27/09, S. Knizner), the tolerance expressions for
fluoxastrobin should be revised as follow:

Under 40 CFR §180.609(a)(1) and §180.609(d):  “Tolerances are
established for residues of fluoxastrobin, including is metabolites and
degradates, in or on the commodities in the table below.  Compliance
with the tolerance levels specified below is to be determined by
measuring only the sum of
(1E)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime and its Z-isomer,
(1Z)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime.

Under 40 CFR §180.609(a)(2):  “Tolerances are established for
residues of fluoxastrobin, including is metabolites and degradates, in
or on the commodities in the table below.  Compliance with the tolerance
levels specified below is to be determined by measuring only the sum
of(1E)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-d
ihydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime, its Z-isomer,
(1Z)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime, and the
phenoxy-hydroxypyrimidine metabolite,
6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinol, calculated as the
stoichiometric equivalent of fluoxastrobin.

860.1200  Directions for Use

The proposed use directions for squash/cucumber subgroup 9B should be
revised to correct the application rate from a range of 0.09 to 0.16 lbs
ai/A to a range of 0.09 to 0.18 lb ai/A.

The statement “Do not apply more than 21.8 fl oz (0.68 lbs ai) of
EVITO 480 SC per acre per year” should be revised to “Do not apply
more than 22.8 fl oz (0.72 lbs ai/A ) of EVITO 480 SC per acre per
year”.

The proposed use directions for squash/cucumber subgroup 9B should be
revised to include use of a non-ionic surfactant (NIS).

860.1500 Crop Field Trials

To fulfill geographic distribution requirements, an additional cucumber
field trial must be conducted in region 2.

860.1550 Proposed Tolerances

A revised Section F is needed that reflect correct commodity definition
(Table 10).

860.1650 Submittal of Analytical Reference Standards

Arysta must provide an analytical reference standard of the metabolite
HEC 7154 to the EPA National Pesticide Standards Repository.

Background

The chemical structure and nomenclature of fluoxastrobin, its Z-isomer,
and the phenoxy-hydroxypyrimidine metabolite are presented in Table 1.
The physicochemical properties of the technical grade of fluoxastrobin
are presented in Table 2.

. No. 66330-64) indicates that the master label is the basis for three
different labels, including Evito™ 480 SC Fungicide.

Table 2.          Physicochemical Properties of Technical Grade
Fluoxastrobin.

Parameter	Value	Reference (MRID)

Melting range	103 -105 ºC	45865525

pH	6.3 (1% in CIPAC-D water)	45865520

Density	1.4216 ±  0.0025 g/mL	45865303

Water solubility	at 20 ºC:

0.0019 g/L;

0.0024 g/L at pH 4

0.0023 g/L at pH 7

0.00227 g/L at pH 9	45865520, 45865525

Solvent solubility		at 20 ºC:

n-heptane	0.05 g/L

xylene	38 g/L

dichloromethane	>250 g/L

2-propanol	6.7 g/L

1-octanol	1.1 g/L

polyethylene glycol 400	100-250 g/L

acetone	>250 g/L

ethyl acetate	>250 g/L

acetonitrile	>250 g/L

dimethylsulfoxide	>250 g/L	45865520, 45865525

Vapor pressure 	<1x10-5  hPa (20 ºC) 	45865525

Dissociation constant, pKa	No acidic or  basic properties in the pH
range between 4 and 9; estimated to be -2.1 ± 0.3	45865303

Octanol/water partition coefficient, Log(POW)	2.85 (20 ºC); POW = 708
45865525

UV/visible absorption spectrum	Peak maxima (nm) 250; molar absorptivity
(1000 cm²/mol) 19358; sample melting point 103.1-107.7 ºC	45865303

860.1200  Directions for Use

Arysta has submitted proposed use directions (Section B) for the 4 lb
ai/gal SC formulation of fluoxastrobin (Fluoxastrobin 480 SC Fungicide;
EPA Reg. No. 66330-64) in/on squash/cucumber subgroup 9B.

The proposed use directions for squash/cucumber subgroup 9B are
presented in Table 3.

Table 3.	Summary of Directions for Use of Fluoxastrobin.

Applic. Timing, Type, and Equip.	Formulation

[EPA Reg. No.]	Applic. Rate

lb ai/A	Max. No. Applic. per Season	Max. Seasonal Applic. Rate

(lb ai/A)	PHI

(days)	Use Directions and Limitations

Squash/Cucumber subgroup 9B:  Chayote (fruit); Chinese waxgourd (Chinese
preserving melon);  cucumber; gherkin; gourd, edible (includes hyotan,
cucuzza, hechima, Chinese okra); Momordica spp (includes balsam apple,
balsam pear, bitter melon, Chinese cucumber); pumpkin; squash, summer
(includes crookneck squash, scallop squash, straightneck squash,
vegetable marrow, and zucchini); and squash, winter (includes butternut
squash, calabaza, hubbard squash, acorn squash, and spaghetti squash)

Broadcast, Foliar,

Ground, Chemigation	4 lb ai/gal SC

[66330-64]	0.09-0.16

(3-5.7 fl. oz/A)	4	0.68

(21.8 fl. oz/A)	1	Applications are to begin preventatively and continue
as needed on a minimum 7-14 day interval.  Use higher rates when disease
is severe.

For belly-rot control, the first application should me made at the 1-3
leaf crop stage, and the second application 10-14 days later, or at vine
tip-over, whichever occurs first.

Soilborne Disease Control (Root rot)

0.005-0.0075 lb/1000 row feet (0.16-0.24 fl. oz/1000 row feet)

Do not use the 0.24 fl oz/1000 row feet rate on rows spaced narrower
than 22 inches.

Do not use the 0.16 fl oz/1000 row feet rate on rows spaced less than 15
inches.

For twin rows spaced 7.5-8” apart on 30 inch centers, use the 0.16 fl
oz/1000 row feet rate for 15” rows only.

The proposed use directions for squash/cucumbers include the following
resistance management restriction: Alternate every application of the
product with at least one application of another registered, non-Group
11 fungicide.  Do not make more than 4 applications of EVITO 480 SC
fungicide and or a Group 11 fungicide per season.  Do not use EVITO 480
SC for control of gummy stem blight where resistance to Group 11 (Qol)
fungicides exists.

The use directions submitted in Section B do not include application
spray volumes, specifications for application via chemigation and
adjuvant use.  The registered label recommends a minimum spray volume of
10 gal/A for ground equipment.  The registered label states that
chemigation applications are to be made through sprinkler-type
irrigation systems only.  The registered label does not specify adjuvant
use in any tank-mix partner.

The use directions submitted in Section B prohibits use of EVITO 480 SC
to squash/cucumber subgroup 9B crops grown in a greenhouse.  In
addition, it prohibits tank mix with emulsifiable concentrate (EC)-based
insecticides, or the following products: malathion, Kelthane®,
Thiodan®, Phaser®, Lannate®, Lorsban®, M-Pede®, or Botran®.

The use directions submitted in Section B do not include rotational crop
restrictions.  The following crop restrictions appear on the registered
label:  0-day PBI for any crop listed on the label; 30-day PBI for root
vegetables (e.g., carrot, radish, sugar beet, and turnips), bulb
vegetables (e.g., onion and garlic), leafy greens subgroup (e.g.,
lettuce and spinach), Brassica vegetables (e.g., broccoli, cauliflower,
cabbage, and mustard greens), alfalfa, cotton, legume vegetables (dry
and succulent peas and beans), cereal grains, and forage grasses; and a
12-month PBI for all other crops.

Conclusions.  The submitted use directions are adequate to allow
evaluation of the residue data relative to the proposed use.  With the
changes to the proposed use noted below, the submitted field trial data
for cucumbers and squash reflect the maximum proposed use rates, the
minimum retreatment intervals (RTIs), and the proposed PHIs:

The proposed use directions for squash/cucumber subgroup 9B should be
revised to correct the application rate from 0.09 to 0.16 lbs ai/A to
0.09 to 0.18 lbs ai/A.

The statement “Do not apply more than 21.8 fl oz (0.68 lbs ai) of
EVITO 480 SC per acre per year” should be revised to “Do not apply
more than 22.8 fl oz (0.72 lbs ai/A ) of EVITO 480 SC per acre per
year”.

The proposed use directions for squash/cucumber subgroup 9B should be
revised to include use of a NIS.

860.1300 Nature of the Residue - Plants

Residue Chemistry Memo DP# 289106, 1/25/05, W. Wassell (PP#3F6556)

The nature of the residue in plants is adequately understood based on
acceptable metabolism studies in wheat, peanuts, and tomatoes.  The data
indicate that metabolism is similar in three dissimilar crops.  HED
previously concluded that the residues of concern in primary crops for
risk assessment and tolerance setting purposes are fluoxastrobin and its
Z-isomer.

860.1300 Nature of the Residue - Livestock

Residue Chemistry Memo DP# 334234, 10/30/08, A. Acierto (PP#3F6556)

Residue Chemistry Memo DP# 289106, 1/25/05, W. Wassell (PP#3F6556)

The nature of the residue in ruminants and poultry is adequately
understood based on acceptable metabolism studies with goats and hens.
The data indicate that metabolism is similar in ruminants and poultry.
Metabolism of fluoxastrobin was found to be more extensive in livestock
than in plants; metabolites consisting of single rings (e.g.,
2-chlorophenol and 2-cyanophenol) were observed in each of the livestock
metabolism studies.  HED previously concluded that the residues of
concern for livestock commodities for risk assessment and tolerance
setting purposes are fluoxastrobin, its Z-isomer, and HEC 7154.

860.1340 Residue Analytical Methods

Residue Chemistry Memo DP# 334234, 10/30/08, A. Acierto (PP#3F6556)

Residue Chemistry Memo DP# 289106, 1/25/05, W. Wassell (PP#3F6556)

Plant commodity methods

Enforcement method:  Acceptable LC/MS/MS methods are available for
tolerance enforcement for plant commodities.  Bayer AG Method 00604 and
the confirmatory Method 00946 have been adequately validated for the
determination of residues of fluoxastrobin and its Z-isomer in/on plant
commodities.

Data collection methods:  Samples of cucumber, cantaloupe, and squash
from the submitted crop field trials were analyzed for residues of
fluoxastrobin and its Z-isomer using an acceptable LC/MS/MS method.  All
samples from the cucurbit vegetable crop field trials were analyzed
using Bayer AG Method 00668.  The methods were adequately validated
prior to and/or in conjunction with the analysis of the field trial.
The validated LOQs were 0.01 ppm for combined residues of fluoxastrobin
and its Z-isomer in/on cucumber, cantaloupe, and squash samples.

For Method 00668, samples (~ 1g) were soaked in acetone:water (75:25,
v:v) for 30 minutes, then subjected to microwave extraction for 1.5
minutes at 40 °C and centrifuged.  The residues were extracted twice
more, once with microwave extraction and once at ambient temperature,
and the resulting supernatants were combined.  The combined extracts
were evaporated under nitrogen to aqueous remainder, then subjected to
cleanup via solid phase extraction on a Bond-Elut ENV cartridge.
Residues were eluted with ethyl acetate, evaporated to dryness, then
redissolved in acetonitrile:water (60:40, v:v) for analysis by
HPLC/MS/MS.

Livestock commodity methods

Acceptable LC/MS/MS methods are available for tolerance enforcement for
livestock commodities.  Bayer AG Method 00691 and the confirmatory
Method 00945 have been adequately validated for determination of
fluoxastrobin, its Z-isomer, and HEC 7154 in ruminant commodities.  The
method LOQs for fluoxastrobin (E+Z isomers) and HEC 7154 are 0.01 ppm
for each analyte in milk, muscle, and fat, and 0.02 ppm for each analyte
in liver and kidney.

Conclusions.  The residue analytical methods data are adequate.
Acceptable methods are available for tolerance enforcement purposes for
the residues of concern in/on plant and livestock commodities, and
samples of cucumber, cantaloupe, and squash from the submitted crop
field trials were analyzed for residues of fluoxastrobin and its
Z-isomer using acceptable data collection methods.

860.1360 Multiresidue Methods

Residue Chemistry Memo DP# 289106, 1/25/05, W. Wassell (PP#3F6556)

Acceptable multiresidue methods test data were previously submitted for
fluoxastrobin, its Z-isomer, and HEC 7154.  The data indicate that the
multiresidue methods are not adequate for tolerance enforcement of
fluoxastrobin residues in/on plant or livestock commodities. The results
were forwarded to FDA.

860.1380 Storage Stability

Residue Chemistry Memo DP# 334234, 10/30/08, A. Acierto (PP#3F6556)

Residue Chemistry Memo DP# 289106, 1/25/05, W. Wassell (PP#3F6556)

Sufficient storage stability data are available to demonstrate that
combined residues of fluoxastrobin and its Z-isomer are stable during
frozen storage (≤-15 °C) in/on raw agricultural crop commodities for
up to ~20-23 months.  The data reflect five representative crops:  an
oilseed (soybean), a non-oily grain (wheat), a leafy vegetable (mustard
greens), a tuber crop (potato), and an acidic fruiting vegetable
(tomato), and demonstrate that residues of fluoxastrobin and its
Z-isomer are stable during frozen storage in/on soybean seed for ~21
months, mustard greens, tomato, wheat grain, hay, and straw for ~22
months, peanut and potato for ~23 months, and wheat forage for ~20
months.

The storage durations and conditions of samples from the submitted crop
field trials and processing studies are presented in Table 4.

TABLE 4.	Summary of Storage Conditions and Durations of Samples from
Crop Field Trials.

Matrix 	Storage Temperature

(°C)	Actual Storage Duration1	Interval of Demonstrated Storage
Stability

Cucumber	~-20	196-227 days (6.5-7.5 months)	Residues of fluoxastrobin
and its Z-isomer are stable during frozen storage in/on five diverse
crops for up to 20-23 months.2

Cantaloupe

117-218 days (3.9-7.2 months)

	Summer Squash

123-225 days (4-7.5 months)

	1  Interval from harvest to completion of analysis.  Method extraction
and analysis procedures were conducted over several days; the durations
from initial to final extraction were 2-7 days, and analyses were
conducted over 0-2 days; analysis of final extracts was completed within
0-1 day of extraction.

2  Refer to DP# 289106, 01/25/05, W. Wassell.

Conclusions.  The available storage stability data for fluoxastrobin on
representative crops are adequate to support the storage durations and
conditions of samples of cucumber, cantaloupe, and summer squash from
the submitted crop field trials.

860.1400 Water, Fish, and Irrigated Crops

This guideline requirement is not relevant to the current petition as
there are no aquatic uses currently proposed for fluoxastrobin.

860.1460 Food Handling

This guideline requirement is not relevant to the current petition as
there are no food handling uses being proposed for fluoxastrobin.

860.1480 Meat, Milk, Poultry, and Eggs

There are no livestock feedstuffs associated with the proposed uses on
squash/cucumber subgroup 9B.  The dietary burdens for fluoxastrobin
residues in livestock diets will not be affected by the subject action;
therefore, data requirements pertaining to meat, milk, poultry, and eggs
are not relevant to the proposed uses.

860.1500 Crop Field Trials

DER Reference:	48088301.der.doc (Squash/cucumber subgroup 9B)

Arysta has submitted field trial data for fluoxastrobin on cucumber,
cantaloupe, and summer squash as the representative crops of the
cucurbit vegetable, crop group 9.  Seventeen field trials were conducted
in the U.S. during the 2008 growing season.  Six cucumber trials were
conducted in region 2 (GA; 2 trials), 3 (FL; 1 trial), 5 (MI; 2 trials),
and 6 (OK; 1 trial).  Six cantaloupe trials were conducted in region 10
(CA; 3 trials) and region 2 (GA; 1 trial), 5 (MI; 1 trial), 6 (TX; 1
trial).  Five summer squash trials were conducted in region 1 (PA; 1
trial), 2 (GA; 1 trial), 3 (FL; 1 trial), 5 (MI; 1 trial) and 10 (CA; 1
trial).

At each test location, four foliar broadcast applications of a 4 lb
ai/gal SC formulation of fluoxastrobin were made at 0.17-0.19 lb
ai/A/application, with a 6- to 8-day RTI, for a total rate of 0.68-0.73
lb ai/A.  Applications were made at BBCH 19-BBCH 90 growth stages using
ground equipment in spray volumes of 14-29 gal/A.  For some trials,
growth stages were not specified as BBCH growth stages.  A NIS was added
to the spray mixtures in some trials.  In the cantaloupe trials,
adjuvant was used at one location only.  In the squash trials, adjuvant
was used at all locations except one.  In the cucumber trials, adjuvant
was used at 2 of the 5 trial locations.  Samples of mature cucumber,
cantaloupe, and summer squash fruits were collected 1 day after the last
application.  Samples of cucumber, cantaloupe, and summer squash were
harvested at 0-, 1-, 3-, 7-, and 10-day PHIs to evaluate residue
decline.

Samples of cucumber, cantaloupe, and summer squash were analyzed for
residues of fluoxastrobin (E-isomer) and its Z-isomer using an LC/MS/MS
method, Bayer AG Method 00668.  The method LOQ was 0.01 ppm for combined
residues of fluoxastrobin and its Z-isomer in cucurbit vegetables.
Quantifiable residues (0.01-0.88) were observed in treated cucumber,
cantaloupe, and squash samples.  The method is adequate based on
acceptable method validation and concurrent recovery data.  The
fortification levels used in concurrent method validation were adequate
to bracket field trial residue results.

Samples of cucurbit vegetables were stored frozen for up to 7.5 months
prior to analysis.  Acceptable storage stability data were previously
submitted which indicate that residues of fluoxastrobin and its Z-isomer
are stable during frozen storage in/on various representative crops for
up to 23 months.  These data are adequate to support the storage
conditions and durations of samples from the cucurbit vegetables crop
field trial study.

Combined residues of fluoxastrobin and its Z-isomer were 0.04-0.18 ppm
in/on cucumber, 0.08-0.88 ppm, in/on cantaloupe, and 0.01-0.18 ppm in/on
summer squash samples.  In the cantaloupe trials, adjuvant was used at
one location only.  The residue for the trial with adjuvant was 0.09
ppm; the range for trials without adjuvant was 0.14 – 0.83 ppm.  In
the squash trials, adjuvant was used at all locations except one.  The
residue was 0.04 ppm where adjuvant was not used, and ranged from 0.06
to 0.15 ppm where adjuvant was used.  In the cucumber trials, adjuvant
was used at 2 of the 5 trial locations.   Residues ranged from 0.04 to
0.09 ppm where adjuvant was used and from 0.07 to 0.17 ppm where
adjuvant was not used.   For all crops, no side-by-side trials were
conducted with and without adjuvant, and therefore it is impossible to
separate the effect of adjuvant use from the effects of trial location
 .

In the residue decline studies, combined residues of fluoxastrobin and
its Z-isomer generally declined with increasing sampling interval.

Table C.5.   Summary of Residue Data from Cucurbit Field Trials with
Fluoxastrobin.

Crop matrix	Total Applic. Rate

 (lb ai/A)	PHI (days)	Residue Levels (ppm) 1

	N2	Min.	Max.	HAFT3	Median	Mean	Std. Dev.

Cucurbit Vegetables (proposed use = 0.017 lb ai/A total application
rate, 1-day PHI)

Cucumber	0.68-0.71	1	12	0.04	0.18	0.17	0.08	0.09	0.04

Cantaloupe	0.68-0.73	1	12	0.08	0.88	0.83	0.34	0.35	0.25

Summer squash	0.68-0.71	1	10	0.01	0.18	0.16	0.08	0.08	0.05

1  Combined residues of fluoxastrobin and its Z-isomer.

2 N = number of samples (includes only target PHI samples from decline
trials)

3 HAFT = Highest average field trial

Conclusions.  The submitted cucumber and summer squash field trial
studies are acceptable and reflect the proposed use patterns.  Samples
were analyzed for residues of fluoxastrobin and its Z-isomer using
acceptable methods, and the studies are supported by adequate storage
stability data.

For cucumbers, the number of field trials is not in accordance with
OPPTS 860.1500.  Six trials were conducted; however, the two field
trials conducted in region 2 could not be counted as independent trials
since both trials have the same address.  One additional cucumber trial
must be conducted in region 2.

Pending revision of the proposed use patterns and submission of the
outstanding field trial data, the submitted field trial data will
support the proposed tolerance of 0.5 ppm for squash/cucumber subgroup
9B.

The field trial data for cucumber and summer squash were separately
entered into the Agency’s tolerance spreadsheet as specified by the
Guidance for Setting Pesticide Tolerances Based on Field Trial Data SOP
to determine an appropriate tolerance level; see Appendix II.  The
tolerance spreadsheet recommends individual tolerances of 0.25 ppm for
cucumber and 0.5 ppm for summer squash.  Because the minimum and maximum
recommended tolerances differ by less than 5x, a crop group tolerance is
appropriate for squash/cucumber subgroup 9B.  The recommended value is
0.5 ppm, the maximum of the recommended individual tolerances.  The
recommended tolerance level is the same as the level proposed by the
petitioner (0.5 ppm).

860.1520 Processed Food and Feed

HED does not require residue data for any processed commodities
associated with squash/cucumber subgroup 9B.  Therefore, data
requirements for processed food and feed are not relevant to this
tolerance petition.

  SEQ CHAPTER \h \r 1 860.1650 Submittal of Analytical Reference
Standards

Analytical standards for fluoxastrobin and Z-fluoxastrobin are currently
available in the EPA National Pesticide Standards Repository
(Repository) (email communication with Charles Stafford, ACB, 9/23/10),
with expiration dates of 2011-2018; the reference standard for the
metabolite HEC 7154 [6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinol] has
expired and must be submitted to the Repository.

Standards were supplied by the previous registrant, Bayer CropScience.
ACB requests that the new registrant, Arysta, provide analytical
reference standard of the metabolite HEC 7154 to the Repository

Conclusions.  The new registrant, Arysta, must provide an analytical
reference standard of the metabolite HEC 7154 to the Repository.

860.1850 Confined Accumulation in Rotational Crops

Residue Chemistry Memo DP# 334234, 10/30/08, A. Acierto (PP#3F6556)

Residue Chemistry Memo DP# 289106, 1/25/05, W. Wassell (PP#3F6556)

Residue Chemistry Memo DP# 292422, 1/24/05, S. Winfield

Available confined rotational crop data are adequate to satisfy data
requirements and to delineate the nature of the residue in rotated crop
commodities.  The confined rotational crop studies indicate the
potential for quantifiable residues of fluoxastrobin in rotated crop
commodities.  HED previously concluded that the residues of concern for
rotational crops for risk assessment and tolerance setting purposes are
fluoxastrobin and its Z-isomer.

860.1900 Field Accumulation in Rotational Crops

Residue Chemistry Memo DP# 334234, 10/30/08, A. Acierto (PP#3F6556)

Residue Chemistry Memo DP# 289106, 1/25/05, W. Wassell (PP#3F6556)

Acceptable limited field rotational crop and extensive field rotational
crop studies were previously reviewed under PP#3F6556.  Adequate field
rotational crop data are available on the representative crops of
mustard greens (leafy vegetable), turnips (root vegetable), and wheat
(cereal grain).  The primary crops each received four spray applications
of fluoxastrobin at ~0.18 lb ai/A, for total application rates of ~0.72
lb ai/A.  The limited field rotational crop data, which indicated no
quantifiable residues of fluoxastrobin and its Z-isomer in mustard
greens and turnip roots and tops at a 30-day PBI, are adequate to
support the proposed 30-day PBI for root and tuber vegetables, bulb
vegetables, leafy vegetables, and Brassica vegetables.  Extensive field
rotational crop studies reflecting a 1-month PBI support the established
indirect or inadvertent tolerances on alfalfa forage and hay; cotton gin
byproducts; forage, fodder, and straw of cereal grains; grass forage and
hay; and foliage of legume vegetables.  These data support the
established rotational crop restrictions on the master label (EPA
Registration No. 66330-64).

860.1550 Proposed Tolerances

Residue Chemistry Memo DP#s 356953 and 357691, 7/8/09, M. Negussie
(PP#8F7406 and PP#8F7437)

Tolerances for plant commodities are established under 40 CFR
§180.609(a)(1) for the combined residues of fluoxastrobin and its
Z-isomer; tolerances for livestock commodities are established under 40
CFR §180.609(a)(2) for combined residues of fluoxastrobin, its
Z-isomer, and the phenoxy-hydroxypyrimidine metabolite.  The tolerance
expression proposed by the petitioner is appropriate for Squash/cucumber
subgroup 9B.

The tolerance proposed by Arysta is the same as the recommended
tolerance by RAB3 and is listed in Table 10, along with the revised
commodity definition.

Pending submission of an additional field trial for cucumber, adequate
field trial data reflecting the proposed use patterns are available for
purposes of establishing tolerances in Squash/cucumber subgroup 9B.  The
field trial data for cucumber and squash were separately entered into
the Agency’s tolerance spreadsheet as specified by the Guidance for
Setting Pesticide Tolerances Based on Field Trial Data SOP (rev. August
2009) to determine an appropriate tolerance level; see Appendix II.  The
tolerance spreadsheet recommends individual tolerances of 0.25 ppm for
cucumber and 0.5 ppm for summer squash.  Because the minimum and maximum
recommended tolerances differ by less than 5x, a crop group tolerance is
appropriate for squash/cucumber subgroup 9B.  The recommended value is
0.5 ppm, the maximum of the recommended individual tolerances.  Based on
the tolerance spreadsheet, the proposed tolerances of 0.5 ppm for
Squash/cucumber subgroup 9B is appropriate.

Table 10. 	Tolerance Summary for Fluoxastrobin

Commodity	Tolerance (ppm)	Comments; Correct Commodity Definition

	Established	Proposed	Recommended

	40 CFR §180.609(a)(1)

Crop subgroup 9B Squash/Cucumbers	--	0.5	0.5	Squash/cucumber subgroup 9B

References

DP#s:		292422 and 303256

Subject:	Fluoxastrobin:  Human Health Risk Assessment for Proposed Uses
on Peanuts, Tuberous and Corm Vegetables (Subgroup 1C), Leaf Petiole
Vegetables (Subgroup 4B), Fruiting Vegetables (Group 8), Turf, and as a
Seed Treatment on Potato (Seed Pieces), Peanut and Turf.  PC Code:
028889.  Petition No.: 3F6556.

From:		S. Winfield

To:		C. Giles-Parker

Dated:		1/24/05

MRIDs:	None

DP#:		289106

Subject:	PP#3F6556.  Fluoxastrobin.  Petition for the Establishment of
Permanent Tolerances for Use on Peanuts, Tuberous and Corm Vegetables
Subgroup, Leaf Petiole Vegetables Subgroup, Fruiting Vegetables Group,
and Seed Treatment of Peanut and Potato.  First Food/Feed Use.  Summary
of Analytical Chemistry and Residue Data.

From:		W. Wassell

To:		D. McNeilly

Dated:		1/25/05

MRIDs:	45865507-45865534 and 45865601-45865611

DP#:	334234

Subject:	Fluoxastrobin.  Supplemental Residue Data for Livestock
Metabolism, Residue Analytical Methods, Storage Stability, Crop Field
Trials, and Rotational Crop Field Trials, Submitted to Fulfill
Conditions of Registration for Fluoxastrobin 480 SC (EPA Reg. No.
66330-64).

From:	A. Acierto

To:	J. Bazuin/T. Kish

Dated:	10/30/08

MRIDs:	46486101-46486104 and 46925801-46925804

DP#s:		356953 and 357691

Subject:	Fluoxastrobin:  Petitions for the Establishment of Permanent
Tolerances for New Uses on Low-Growing Berry Crop Subgroup 13-07G
(PP#8F7406), Soybean and Field Corn (PP#8F7437).  Summary of Analytical
Chemistry and Residue Data.

From:		M. Negussie

To:		T. Kish

Dated:		07/08/09

MRIDs:	47494701 and 47549202-47549205

  SEQ CHAPTER \h \r 1 Attachments:

International Residue Limit Status sheet

Appendix I - Tolerance Assessment Calculations

Template Version April 2008

International Residue Limits.

Summary of US and International Tolerances and Maximum Residue Limits

Residue Definition:

US	Canada	Mexico2	Codex3

40 CFR 180.609

Plant: fluoxastrobin,
(1E)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime and its Z isomer,
(1Z)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime

Livestock: fluoxastrobin,
(1E)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime, its Z isomer,
(1Z)-[2-[[6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinyl]oxy]phenyl](5,6-dih
ydro-1,4,2-dioxazin-3-yl)methanone O-methyloxime, and its
phenoxy-hydroxypyrimidine, 6-(2-chlorophenoxy)-5-fluoro-4-pyrimidinol
None

None

Commodity1	Tolerance (ppm) /Maximum Residue Limit (mg/kg)

	US	Canada	Mexico2	Codex

Squash/cucumber subgroup 9B	0.5

	Completed:  M. Negussie; 09/23/2010

1 Includes only commodities of interest for this action.  Tolerance
values should be the HED recommendations and not those proposed by the
applicant.

2 Mexico adopts US tolerances and/or Codex MRLs for its export purposes.

3 * = absent at the limit of quantitation; Po = postharvest treatment,
such as treatment of stored grains.  PoP = processed postharvest treated
commodity, such as processing of treated stored wheat. (fat) = to be
measured on the fat portion of the sample. MRLs indicated as proposed
have not been finalized by the CCPR and the CAC.

Appendix I.  Tolerance Assessment Calculations.

For each of the crops listed below, the Guidance for Setting Pesticide
Tolerances Based on Field Trial Data (SOP), along with the tolerance
spreadsheet (August 2009 version), was used for calculating recommended
tolerances.  As specified in the SOP, the minimum of the 95% upper
confidence limit (UCL) on the 95th percentile and the point estimate of
the 99th percentile was selected as the tolerance value in cases when
the dataset was large (greater than 15 samples) and reasonably
lognormal.  For datasets that were not lognormal, the upper bound on the
89th percentile was selected as the tolerance value (distribution-free
method).  The rounding procedures specified in the SOP were also used.

Cucumber

The dataset used to establish tolerances for combined residues of
fluoxastrobin and its Z-isomer on cucumber consisted of field trial data
representing application rates of 0.68-0.73 lb ai/A (4 applications at
0.17-0.19 lb ai/A/application) with a 1-day PHI.  The field trial
application rates and PHIs are in accordance with the label application
rate and minimum label PHI, respectively.  The residue values entered
into the tolerance spreadsheet are provided in Table I-1.

All field trial sample results for cucumber and squash were above the
LOQ (LOQ = 0.01 ppm).  The datasets were small (12 and 10 samples,
respectively).  Visual inspection of the lognormal probability plots
(Figures I-1 and I-3) and the approximate Shapiro-Francia test
statistics (Figures I-2 and I-4) indicated that the datasets for
cucumber and squash were reasonably lognormal.

Using the tolerance spreadsheet, the recommended tolerance for cucumber
is 0.25 ppm and 0.5 ppm for squash.  Because the minimum and maximum
recommended tolerances differ by less than 5x, a crop group tolerance is
appropriate for squash/cucumber subgroup 9B.  The recommended value is
0.5 ppm, the maximum of the recommended individual tolerances, which is
the same as the proposed tolerance (0. 5 ppm).

Table I-1.	Residue data used to calculate tolerances for fluoxastrobin
on cucumber.

Regulator:	EPA	EPA	EPA

Chemical:	Fluoxastrobin	Fluoxastrobin	Fluoxastrobin

Crop:	Cucumber	Cantaloupe	Squash

PHI:	1-day	1-day	1-day

App. Rate:	0.68-0.73 lb ai/A	0.68-0.71 lb ai/A	0.68-0.71 lb ai/A

Submitter:	Arysta LifeScience	Arysta LifeScience	Arysta LifeScience

MRID Citation:	MRID 48088301	MRID 48088301	MRID 48088301

	Combined residues of fluoxastrobin and its Z-isomer (ppm)

	0.06	0.09	0.10

	0.09	0.08	0.12

	0.04	0.19	0.07

	0.05	0.09	0.05

	0.10	0.34	0.11

	0.08	0.34	0.18

	0.18	0.88	0.04

	0.16	0.78	0.04

	0.11	0.33	0.01

	0.06	0.27	0.12

	0.07	0.41

0.07	0.42

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Figure I-2.   Tolerance spreadsheet summary of fluoxastrobin field trial
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Figure I-3.  Lognormal probability plot of fluoxastrobin field trial
data for summer squash.

Figure I-4.   Tolerance spreadsheet summary of fluoxastrobin field trial
data for summer squash.

Page   PAGE  22  of   NUMPAGES  22

Fluoxastrobin	Summary of Analytical Chemistry and Residue Data	DP#:
380846


[Federal Register: September 18, 2009 (Volume 74, Number 180)]
[Proposed Rules]
[Page 47897-47900]
[DOCID:fr18se09-9]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

========================================================================

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0865; Directorate Identifier 2009-NM-023-AD]
RIN 2120-AA64

Airworthiness Directives; Boeing Model 747-100, 747-100B, 747-
100B SUD, 747-200B, 747-200C, 747-200F, 747-300, 747SR, and 747SP
Series Airplanes Equipped With General Electric CF6-45 or -50 Series
Engines, or Equipped With Pratt & Whitney JT9D-3 or -7 (Excluding -70)
Series Engines

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

ACTION: Notice of proposed rulemaking (NPRM).

-----------------------------------------------------------------------

SUMMARY: The FAA proposes to supersede an existing airworthiness
directive (AD) that applies to certain Boeing Model 747-100, 747-100B,
747-100B SUD, 747-200B, 747-200C, 747-200F, 747-300, 747SR, and 747SP
series airplanes. The existing AD currently requires repetitive
inspections to detect cracks and fractures of the strut front spar
chord assembly (including the forward side) at each strut location, and
repair if necessary. This proposed AD would add a one-time inspection
for cracking of the forward side of the front spar chord assembly on
the inboard and outboard struts, installation of a cap skin doublers
for certain airplanes, and repair if necessary. These actions would
terminate the repetitive inspections of the forward side of the strut
front spar chord assembly; the inspections of the aft side assembly
continue as specified in the existing AD. This proposed AD results from
a report of a fractured front spar assembly for strut No. 3, which
resulted in the loss of the strut upper link load path. We are
proposing this AD to detect and correct cracks and fractures of the
nacelle strut front spar chord assembly. Fracture of the front spar
chord assembly could lead to loss of the strut upper link load path and
consequent fracture of the diagonal brace, which could result in in-
flight separation of the strut and engine from the airplane.

DATES: We must receive comments on this proposed AD by November 2,
2009.

ADDRESSES: You may send comments by any of the following methods:
     Federal rulemaking Portal: Go to http://
www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-
544-5000, extension 1; fax<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
Internet https://www.myboeingfleet.com. You may review copies of the
referenced service information at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue, SW., Renton, Washington. For information
on the availability of this material at the FAA, call<PHONE_NUMBER> or
425-227-1152.

Examining the AD Docket

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

FOR FURTHER INFORMATION CONTACT: Ken Paoletti, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
917-6434; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2009-0865;
Directorate Identifier 2009-NM-023-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD because of those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    On December 26, 2006, we issued AD 2007-01-15, amendment 39-14887
(72 FR 1427, January 12, 2007), for certain Boeing Model 747-100, 747-
100B, 747-100B SUD, 747-200B, 747-200C, 747-200F, 747-300, 747SR, and
747SP series airplanes. That AD requires repetitive inspections to
detect cracks and fractures of the strut front spar chord assembly,
including the forward side, at each strut location, and repair if
necessary. That AD resulted from a strut front spar chord assembly that
was found fractured, forward of the inspections that are required by AD
2004-25-05, amendment 39-13893 (69 FR 71349), which was superseded by
AD 2007-01-15. We issued AD 2007-01-05 to detect and correct cracks and
fractures of the nacelle strut front spar chord assembly. Fracture of
the front spar chord assembly could lead to loss of the strut upper
link load path and consequent fracture of the diagonal brace, which
could result in in-flight separation of the strut and engine from the
airplane.

Actions Since Existing AD Was Issued

    The preamble to AD 2007-01-15 specifies that we consider the
requirements ``interim action'' and that

the manufacturer is developing a modification to address the unsafe
condition. That AD explains that we might consider further rulemaking
if a modification is developed, approved, and available. The
manufacturer now has developed such a modification only for the front
spar chord assembly forward of the upper link attachment. Therefore, we
have determined that further rulemaking is indeed necessary; this
proposed AD follows from that determination.

Relevant Service Information

    We have reviewed Boeing Alert Service Bulletin 747-54A2230, dated
October 30, 2008. The service bulletin describes the following
procedures:
     A one-time open-hole high frequency eddy current (HFEC)
inspection for cracking of the forward side of the front spar chord
assembly on the inboard and outboard struts. For airplanes on which the
cap skin doubler is not installed, the service bulletin also includes
procedures for installing the cap skin doubler.
     For airplanes on which no crack is found, the service
bulletin states that no further action is required.
     For airplanes on which any crack is found, the service
bulletin specifies the corrective action of contacting Boeing for
additional instructions and doing the repair before further flight. The
service bulletin specifies that doing the repair ends the need for the
repetitive inspections of the forward side of the strut front spar
chord assembly.
    The service bulletin specifies doing the inspection, and the
installation of the cap skin doubler for certain airplanes, within 48
months after the date on the service bulletin for the outboard strut,
and within 36 months after the date on the service bulletin for the
inboard strut.

FAA's Determination and Requirements of the Proposed AD

    We have evaluated all pertinent information and identified an
unsafe condition that is likely to develop on other airplanes of the
same type design. For this reason, we are proposing this AD, which
would supersede AD 2007-01-15 and retain the requirements of the
existing AD. This proposed AD would also require accomplishing the
actions specified in the service bulletin described previously, except
as discussed under ``Difference Between the Proposed AD and the Service
Bulletin.''

Difference Between the Proposed AD and the Service Bulletin

    Boeing Alert Service Bulletin 747-54A2230, dated October 30, 2008,
specifies to contact the manufacturer for instructions on how to repair
certain conditions, but this proposed AD would require repairing those
conditions in one of the following ways:
     Using a method that we approve; or
     Using data that meet the certification basis of the
airplane, and that has been approved by an Authorized Representative
for the Boeing Commercial Airplanes Delegation Option Authorization
Organization whom we have authorized to make those findings.

Changes to Existing AD

    This proposed AD would retain all requirements of AD 2007-01-15.
Since AD 2007-01-15 was issued, the AD format has been revised, and
certain paragraphs have been rearranged. As a result, the corresponding
paragraph identifiers have changed in this proposed AD, as listed in
the following table:

                      Revised Paragraph Identifiers
------------------------------------------------------------------------
                                             Corresponding  requirement
       Requirement in AD 2007-01-15             in this  proposed AD
------------------------------------------------------------------------
Paragraph (f).............................  paragraph (g).
Paragraph (g).............................  paragraph (h).
Paragraph (h).............................  paragraph (i).
Paragraph (i).............................  paragraph (j).
Paragraph (j).............................  paragraph (k).
Paragraph (k).............................  paragraph (l).
Paragraph (l).............................  paragraph (m).
Paragraph (m).............................  paragraph (q).
------------------------------------------------------------------------

Interim Action

    We consider the actions in this proposed AD to be interim actions
for the strut front spar chord assembly at each strut location,
excluding the forward side (the terminating action for the forward side
is included in this proposed AD). If the manufacturer develops a
modification for the remainder of the front spar chord assembly, we
might consider additional rulemaking.

Costs of Compliance

    There are about 411 airplanes of the affected design in the
worldwide fleet. The following table provides the estimated costs for
U.S. operators to comply with this proposed AD.

                                                                     Estimated Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Number of U.S.-
              Action                     Work hours        Average labor          Parts          Cost per airplane     registered         Fleet cost
                                                           rate per hour                                                airplanes
--------------------------------------------------------------------------------------------------------------------------------------------------------
Inspections (required by AD 2007-  17...................             $80  $0..................  $1,360 per                       85  $115,600 per
 01-15).                                                                                inspection cycle.                    inspection cycle.
One-time inspection and cap skin   30 to 116 \1\........              80  $893 to $36,737 \1\.  $3,293 to $46,017                85  $279,905 to
 doubler installation (new                                                                       \1\.                                 $3,911,445.\1\
 proposed action).
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Depending on airplane configuration.

Authority for This Rulemaking.

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

Regulatory Findings

    We have determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that the proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD and placed it in the AD docket. See the
ADDRESSES section for a location to examine the regulatory evaluation.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

    2. The FAA amends Sec.  39.13 by removing amendment 39-14887 (72 FR
1427, January 12, 2007) and adding the following new AD:

Boeing: Docket No. FAA-2009-0865; Directorate Identifier 2009-NM-
023-AD.

Comments Due Date

    (a) The FAA must receive comments on this AD action by November
2, 2009.

Affected ADs

    (b) This AD supersedes AD 2007-01-15.

Applicability

    (c) This AD applies to Boeing Model 747-100, 747-100B, 747-100B
SUD, 747-200B, 747-200C, 747-200F, 747-300, 747SR, and 747SP series
airplanes, certificated in any category, equipped with General
Electric CF6-45 or -50 series engines, or equipped with Pratt &
Whitney JT9D-3 or -7 (excluding -70) series engines, as identified
in Boeing Alert Service Bulletin 747-54A2224, Revision 1, dated
November 16, 2006.

Subject

    (d) Air Transport Association (ATA) of America Code 54:
Nacelles/Pylons.

Unsafe Condition

    (e) This AD results from a report of a fractured front spar
assembly for strut No. 3, which resulted in the loss of the strut
upper link load path. The Federal Aviation Administration is issuing
this AD to detect and correct cracks and fractures of the nacelle
strut front spar chord assembly. Fracture of the front spar chord
assembly could lead to loss of the strut upper link load path and
consequent fracture of the diagonal brace, which could result in in-
flight separation of the strut and engine from the airplane.

Compliance

    (f) You are responsible for having the actions required by this
AD performed within the compliance times specified, unless the
actions have already been done.

Restatement of Requirements of AD 2004-25-05, Amendment 39-13893

Aft Side Detailed and High Frequency Eddy Current (HFEC) Inspections
With New Service Information

    (g) Within 90 days after December 27, 2004 (the effective date
of AD 2004-25-05, which was superseded by AD 2007-01-15), perform
detailed and HFEC inspections to detect any cracks or fractures of
the front spar chord assembly for strut numbers 1 through 4
inclusive, in accordance with Boeing Alert Service Bulletin 747-
54A2224, dated September 30, 2004; or in accordance with Part 1--Aft
Side Inspection of the Accomplishment Instructions of Boeing Alert
Service Bulletin 747-54A2224, Revision 1, dated November 16, 2006.
As of January 29, 2007 (the effective date of AD 2007-01-15), only
Part 1--Aft Side Inspection of the Accomplishment Instructions of
Revision 1 of Boeing Alert Service Bulletin 747-54A2224, Revision 1,
dated November 16, 2006, may be used.
    (h) Accomplishment of the detailed and HFEC inspections in
accordance with Boeing 747 Fleet Team Digest 747-FTD-54-04002, dated
April 15, 2004, May 4, 2004, June 1, 2004, July 12, 2004, or July
28, 2004; or Boeing Message 1-C6ELC (Service Request ID No.:
218724992), dated April 14, 2004; before December 27, 2004, is
considered acceptable for compliance with the requirements of
paragraph (g) of this AD.

Repetitive Inspections

    (i) For airplanes on which no crack or fracture is detected
during the inspections required by paragraph (g) of this AD: At the
applicable times specified in Table 1--Repetitive Intervals of this
AD, repeat the detailed and HFEC inspections required by paragraph
(g) of this AD.

                      Table 1--Repetitive Intervals
------------------------------------------------------------------------
   For airplanes identified in Boeing
  Alert Service Bulletin 747-54A2224,       Repeat the inspections at
 dated September 30, 2004; or Revision      intervals not to exceed--
    1, dated November 16, 2006; as--
------------------------------------------------------------------------
Group 1................................  1,000 flight cycles or 18
                                          months, whichever occurs
                                          first.
Group 2 and Group 3....................  1,200 flight cycles or 18
                                          months, whichever occurs
                                          first.
Group 4 and Group 6....................  1,500 flight cycles or 18
                                          months, whichever occurs
                                          first.
Group 5................................  2,000 flight cycles or 18
                                          months, whichever occurs
                                          first.
------------------------------------------------------------------------

Corrective Action

    (j) If any crack or fracture is found during any inspection
required by paragraphs (g) and (i) of this AD, and Boeing Alert
Service Bulletin 747-54A2224, dated September 30, 2004; or Revision
1, dated November 16, 2006; specifies contacting Boeing for
appropriate action: Before further flight, repair the crack or
fracture using a method approved in accordance with the procedures
specified in paragraph (q) of this AD.

Restatement of Requirements of AD 2007-01-15

Forward Side Detailed and HFEC Inspections

    (k) Within 90 days after January 29, 2007, do detailed and HFEC
inspections for any cracks or fracture of the front spar chord
assembly for strut numbers 1, 2, 3, and 4, in accordance with Part
2--Forward Side Inspection of the Accomplishment Instructions of
Boeing Alert Service Bulletin 747-54A2224, Revision 1, dated
November 16, 2006. If no crack or fracture is found, repeat the
inspections thereafter at the applicable interval specified in Table
1 of this AD. Doing the inspections required by paragraph (n) of
this AD terminates the forward side detailed and HFEC inspection
requirements of this paragraph.

Corrective Action for Forward Side Inspection

    (l) If any crack or fracture is found during any inspection
required by paragraph (k) of this AD, and Boeing Alert Service
Bulletin 747-54A2224, Revision 1, dated November 16, 2006, specifies
to contact Boeing for appropriate action: Before further flight,
repair the crack or fracture using a method approved in accordance
with the procedures specified in paragraph (q) of this AD.

Credit for Inspections Done According to Boeing 747 Fleet Team Digest

    (m) Detailed and HFEC inspections done before January 29, 2007,
in accordance with Boeing 747 Fleet Team Digest 747-FTD-54-06002,
dated June 29, 2006; or October 16, 2006; are acceptable for
compliance with the initial inspection required by paragraph (k) of
this AD.

New Requirements of This AD

Inspection and Corrective Actions

    (n) At the applicable time specified in paragraph 1.E.,
``Compliance,'' of Boeing Alert Service Bulletin 747-54A2230, dated
October 30, 2008; except that where the service bulletin specifies a
compliance time after the date on the service bulletin, this AD
requires compliance within the specified compliance time after the
effective date of this AD: Do an open-hole high frequency eddy
current (HFEC) inspection for cracking of the of the forward side of
the front spar chord assembly on the inboard and outboard struts;
and, for airplanes on which the cap skin doubler is not installed,
install the cap skin doubler; in accordance with the Accomplishment
Instructions of Boeing Alert Service Bulletin 747-54A2230, dated
October 30, 2008.
    (o) If any crack is found during the inspection required by
paragraph (n) of this AD: Before further flight, repair the crack
using a method approved in accordance with the procedures specified
in paragraph (q) of this AD.
    (p) Doing all applicable actions required by paragraphs (n) and
(o) of this AD terminates the repetitive forward side detailed and
HFEC inspection requirements of paragraph (k) of this AD. All aft
side inspection requirements of this AD remain in effect.

Alternative Methods of Compliance (AMOCs)

    (q)(1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19. Send information to
ATTN: Ken Paoletti, Aerospace Engineer, Airframe Branch, ANM-120S,
FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue, SW.,
Renton, Washington 98057-3356; telephone<PHONE_NUMBER>; fax (425)
917-6590. Or, e-mail information to 9-ANM-Seattle-ACO-AMOC-
<EMAIL_ADDRESS>    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your principal maintenance inspector (PMI) or
principal avionics inspector (PAI), as appropriate, or lacking a
principal inspector, your local Flight Standards District Office.
The AMOC approval letter must specifically reference this AD.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD, if it is approved by an
Authorized Representative for the Boeing Commercial Airplanes
Delegation Option Authorization Organization who has been authorized
by the Manager, Seattle ACO, to make those findings. For a repair
method to be approved, the repair must meet the certification basis
of the airplane, and the approval must specifically refer to this
AD.
    (4) AMOCs approved previously in accordance with AD 2007-01-15,
are approved as AMOCs for the corresponding provisions of this AD.

    Issued in Renton, Washington, on September 11, 2009.
Stephen P. Boyd,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E9-22577 Filed 9-17-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Notices]
[Pages 10166-10169]
[FR Doc No: 2019-05085]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85301; File No. SR-MIAX-2019-09]

Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule

March 13, 2019.
    Pursuant to the provisions of 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 February 28, 2019, Miami International
Securities Exchange, LLC (``MIAX Options'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') a proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the Exchange. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange is filing a proposal to amend the MIAX Options Fee
Schedule (the ``Fee Schedule'').
    While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on March 1, 2019.
    The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings, at MIAX's principal
office, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its Fee Schedule to (i) decrease the
amount of the per contract credit assessable to Agency Orders (defined
below) in a cPRIME Auction (``cPRIME Agency Order Credit'') for Members
\3\ in Tier 4 of the Priority Customer Rebate Program (``PCRP'') \4\
and (ii) establish an alternative cPRIME Agency Order Credit amount for
cPRIME Agency Orders in Tier 4 of the PCRP, that will apply instead of
the credit otherwise applicable to such orders, if a certain threshold
is satisfied by the Member.
---------------------------------------------------------------------------

    \3\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
    \4\ Under the PCRP, MIAX Options credits each Member the per
contract amount resulting from each Priority Customer order
transmitted by that Member which is executed electronically on the
Exchange in all multiply-listed option classes (excluding, in simple
or complex as applicable, QCC and cQCC Orders, mini-options,
Priority Customer-to-Priority Customer Orders, C2C and cC2C Orders,
PRIME and cPRIME AOC Responses, PRIME and cPRIME Contra-side Orders,
PRIME and cPRIME Orders for which both the Agency and Contra-side
Order are Priority Customers, and executions related to contracts
that are routed to one or more exchanges in connection with the
Options Order Protection and Locked/Crossed Market Plan referenced
in Exchange Rule 1400), provided the Member meets certain percentage
thresholds in a month as described in the Priority Customer Rebate
Program table. See Fee Schedule, Section (1)(a)(iii).
---------------------------------------------------------------------------

    Exchange Rule 518(b)(7) defines a cPRIME Order as a type of complex
order \5\ that is submitted for participation in a cPRIME Auction and
trading of cPRIME Orders is governed by Rule 515A, Interpretations and
Policies .12.\6\ cPRIME Orders are processed and executed in the
Exchange's PRIME mechanism, the same mechanism that the Exchange uses
to process and execute simple PRIME orders, pursuant to Exchange Rule
515A.\7\ PRIME is a process by which a Member may electronically submit
for execution an order it represents as agent (an ``Agency Order'')
against principal interest and/or solicited interest. The Member that
submits the Agency Order (``Initiating Member'') agrees to guarantee
the execution of the Agency Order by submitting a contra-side order
representing principal interest or solicited interest (``Contra-Side
Order''). When the Exchange receives a properly designated Agency Order
for Auction processing, a request for response (``RFR'') detailing the
option, side, size

and initiating price is broadcasted to MIAX Options participants up to
an optional designated limit price. Members may submit responses to the
RFR, which can be either an Auction or Cancel (``AOC'') order or an AOC
eQuote. A cPRIME Auction is the price-improvement mechanism of the
Exchange's System pursuant to which an Initiating Member electronically
submits a complex Agency Order into a cPRIME Auction. The Initiating
Member, in submitting an Agency Order, must be willing to either (i)
cross the Agency Order at a single price against principal or solicited
interest, or (ii) automatically match against principal or solicited
interest, the price and size of a RFR that is broadcast to MIAX Options
participants up to an optional designated limit price. Such responses
are defined as cPRIME AOC Responses or cPRIME eQuotes.
---------------------------------------------------------------------------

    \5\ A ``complex order'' is any order involving the concurrent
purchase and/or sale of two or more different options in the same
underlying security (the ``legs'' or ``components'' of the complex
order), for the same account, in a ratio that is equal to or greater
than one-to-three (.333) and less than or equal to three-to-one
(3.00) and for the purposes of executing a particular investment
strategy. A complex order can also be a ``stock-option'' order,
which is an order to buy or sell a stated number of units of an
underlying security coupled with the purchase or sale of options
contract(s) on the opposite side of the market, subject to certain
contingencies set forth in the proposed rules governing complex
orders. For a complete definition of a ``complex order,'' see
Exchange Rule 518(a)(5). See also Securities Exchange Act Release
No. 78620 (August 18, 2016), 81 FR 58770 (August 25, 2016) (SR-MIAX-
2016-26).
    \6\ See Securities Exchange Act Release No. 81131 (July 12,
2017), 82 FR 32900 (July 18, 2017) (SR-MIAX-2017-19). (Order
Granting Approval of a Proposed Rule Change to Amend MIAX Options
Rules 515, Execution of Orders and Quotes; 515A, MIAX Price
Improvement Mechanism (``PRIME'') and PRIME Solicitation Mechanism;
and 518, Complex Orders).
    \7\ Id.
---------------------------------------------------------------------------

cPRIME Agency Order Fees
    In the PCRP, the Exchange assesses an Agency Order Credit for
cPRIME Agency Orders. The Exchange currently credits each Member $0.10
per contract per leg for each Priority Customer \8\ complex order
submitted into the cPRIME Auction as a cPRIME Agency Order in Tiers 1,
2 and 3. The Exchange currently credits each Member $0.22 per contract
per leg for each Priority Customer complex order submitted into the
cPRIME Auction as a cPRIME Agency Order in Tier 4. However, no credit
is assessed if the cPRIME Agency Order executes against a Contra-Side
Order which is also from another a Priority Customer. Further, the per
contract credit for cPRIME Agency Orders will continue to be assessable
to the first 1,000 contracts per leg for each cPRIME Agency Order,
which applies to all Tiers of the PCRP. The Exchange proposes to
decrease the cPRIME Agency Order Credit for Members who are in Tier 4
of the PCRP from $0.22 to $0.10. The purpose of such decrease in Tier 4
is to align the credit offered for cPRIME Agency Orders in all Tiers to
now be $0.10. The Exchange previously increased the cPRIME Agency Order
Credit for Members who are in Tier 4 of the PCRP from $0.10 to $0.22 in
order to encourage market participants to submit more Priority Customer
cPRIME Agency Orders and therefore increase Priority Customer order
flow.\9\ The Exchange now believes, that it is appropriate to adjust
this credit to be consistent with the other PCRP Tiers.
---------------------------------------------------------------------------

    \8\ ``Priority Customer'' means a person or entity that (i) is
not a broker or dealer in securities, and (ii) does not place more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial accounts(s). A ``Priority
Customer Order'' means an order for the account of a Priority
Customer. See Exchange Rule 100.
    \9\ See Securities Exchange Act Release No. 81372 (August 10,
2017), 82 FR 157 (August 16, 2017) (SR-MIAX-2017-40).
---------------------------------------------------------------------------

Alternative Credit for cPRIME Agency Orders
    The Exchange additionally proposes to establish an alternative
cPRIME Agency Order Credit amount for cPRIME Agency Orders in Tier 4 of
the PCRP that will apply instead of the credit otherwise applicable to
such orders, if a certain threshold is satisfied by the Member.
Specifically, the Exchange proposes the following additional threshold:
If any Member or its Affiliate \10\ that qualifies for PCRP Tier 4
executes Priority Customer standard, non-paired complex volume at least
equal to or greater than their Priority Customer cPRIME Agency Order
volume, on a monthly basis, then the Member will receive a credit of
$0.22 per contract for cPRIME Agency Orders instead of the credit
otherwise applicable to such orders in Tier 4. The Exchange believes
that establishing this additional threshold will encourage market
participants to submit more complex orders and therefore increase
Priority Customer order flow. Specifically, the Exchange believes that
by encouraging market participants to execute Priority Customer
standard, non-paired complex volume at least equal to or greater than
their Priority Customer cPRIME Agency Order volume in order to receive
a credit of $0.22 per contract for cPRIME Agency Orders instead of the
credit otherwise applicable to such orders in Tier 4 of the PCRP will
increase volume of Priority Customer standard, non-paired complex order
and of Priority Customer complex orders, which will result in increased
liquidity which benefits all Exchange participants by providing more
trading opportunities and tighter spreads.
---------------------------------------------------------------------------

    \10\ For purposes of the MIAX Options Fee Schedule, the term
``Affiliate'' means (i) an affiliate of a Member of at least 75%
common ownership between the firms as reflected on each firm's Form
BD, Schedule A, (``Affiliate''), or (ii) the Appointed Market Maker
of an Appointed EEM (or, conversely, the Appointed EEM of an
Appointed Market Maker). An ``Appointed Market Maker'' is a MIAX
Market Maker (who does not otherwise have a corporate affiliation
based upon common ownership with an EEM) that has been appointed by
an EEM and an ``Appointed EEM'' is an EEM (who does not otherwise
have a corporate affiliation based upon common ownership with a MIAX
Market Maker) that has been appointed by a MIAX Market Maker,
pursuant to the following process. A MIAX Market Maker appoints an
EEM and an EEM appoints a MIAX Market Maker, for the purposes of the
Fee Schedule, by each completing and sending an executed Volume
Aggregation Request Form by email to<EMAIL_ADDRESS>no
later than 2 business days prior to the first business day of the
month in which the designation is to become effective. Transmittal
of a validly completed and executed form to the Exchange along with
the Exchange's acknowledgement of the effective designation to each
of the Market Maker and EEM will be viewed as acceptance of the
appointment. The Exchange will only recognize one designation per
Member. A Member may make a designation not more than once every 12
months (from the date of its most recent designation), which
designation shall remain in effect unless or until the Exchange
receives written notice submitted 2 business days prior to the first
business day of the month from either Member indicating that the
appointment has been terminated. Designations will become operative
on the first business day of the effective month and may not be
terminated prior to the end of the month. Execution data and reports
will be provided to both parties.
---------------------------------------------------------------------------

    The proposed rule change is scheduled to become operative March 1,
2019.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \11\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\12\ in that it
is an equitable allocation of reasonable dues, fees and other charges
among Exchange members and issuers and other persons using its
facilities, and 6(b)(5) of the Act,\13\ in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------

    The Exchange's proposal to decrease the cPRIME Agency Order Credit
assessable to Priority Customer cPRIME Agency Orders by Members in Tier
4 of the PCRP is consistent with Section 6(b)(4) of the Act \14\
because it applies equally to all participants with similar order flow
in that tier. The Exchange believes that the proposed PCRP rebate
decrease in Tier 4 for Priority Customer orders submitted into cPRIME
Auctions is fair, equitable, and not unreasonably discriminatory. The
PCRP is reasonably designed because it will incentivize providers of
Priority Customer order flow to send that Priority Customer order flow
to the Exchange in order to obtain the highest volume threshold and
receive credits in a manner that enables the Exchange to improve its
overall competitiveness and strengthen its

market quality for all market participants. Additionally, the Exchange
believes that for competitive and business reasons, it is now
appropriate to decrease the cPRIME Agency Order Credit in PCRP Tier 4
to be aligned with existing cPRIME Agency Order Credits in PRCP Tiers
1, 2 and 3.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    In addition, the proposal is also consistent with Section 6(b)(5)
of the Act \15\ because it perfects the mechanisms of a free and open
market and a national market system and protects investors and the
public interest because, by aligning the credit offered to Members in
Tier 4 to the credits offered for the same types of orders in Tiers 1,
2 and 3, Priority Customer order flow will be increased and an increase
in Priority Customer order flow will bring greater volume and
liquidity, which benefit all market participants by providing more
trading opportunities and tighter spreads. To the extent Priority
Customer order flow is increased by the proposal, market participants
will increasingly compete for the opportunity to trade on the Exchange
including sending more orders and providing narrower and larger-sized
quotations in the effort to trade with such Priority Customer order
flow.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------

    The Exchange's proposal to establish an alternative cPRIME Agency
Order Credit amount for cPRIME Agency Orders in Tier 4 of the PCRP that
will apply instead of the credit otherwise applicable to such orders,
if a certain threshold is satisfied by the Member is consistent with
Section 6(b)(4) of the Act \16\ because it applies equally to all
participants with similar order flow in that tier. The Exchange
believes that the proposed alternative threshold by which any Member or
its Affiliate that qualifies for PCRP volume Tier 4 and executes
Priority Customer standard, non-paired complex volume at least equal to
or greater than their Priority Customer cPRIME Agency Order volume, on
a monthly basis, receives a credit of $0.22 per contract for cPRIME
Agency Orders instead of the credit otherwise applicable to such orders
in Tier 4 is fair, equitable, and not unreasonably discriminatory
because it will encourage Members to submit both Priority Customer
standard, non-paired complex orders and Priority Customer complex
orders, which will increase liquidity, which benefit all market
participants by providing more trading opportunities and tighter
spreads. The PCRP is reasonably designed because it will incentivize
providers of Priority Customer order flow to send that Priority
Customer order flow to the Exchange in order to obtain the highest
volume threshold and receive a credit in a manner that enables the
Exchange to improve its overall competitiveness and strengthen its
market quality for all market participants.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    In addition, the proposal is also consistent with Section 6(b)(5)
of the Act \17\ because it perfects the mechanisms of a free and open
market and a national market system and protects investors and the
public interest because, while only certain Priority Customer order
flow qualifies for the rebate program under the PCRP and specifically
only order flow by Members in Tier 4 of the PCRP that meet the
additional threshold will receive the greater rebate, an increase in
Priority Customer order flow will bring greater volume and liquidity,
which benefit all market participants by providing more trading
opportunities and tighter spreads. To the extent Priority Customer
order flow is increased by the proposal, market participants will
increasingly compete for the opportunity to trade on the Exchange
including sending more orders and providing narrower and larger-sized
quotations in the effort to trade with such Priority Customer order
flow.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------

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

    MIAX Options does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that the
proposed decrease to the cPRIME Agency Order Credit assessable to
cPRIME Agency Orders by Members in Tier 4 of the PCRP is intended to
promote consistency across all cPRIME Agency Order tiers of the PCRP.
The Exchange believes that aligning the cPRIME credits assessable to
cPRIME Agency Orders in all tiers will not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act because it will continue to encourage Priority Customer
order flow and an increase in Priority Customer order flow will bring
greater volume and liquidity, which benefit all market participants by
providing more trading opportunities and tighter spreads. The Exchange
further believes that its proposal to establish an alternative cPRIME
Agency Order Credit amount for cPRIME Agency Orders in Tier 4 of the
PCRP that will apply instead of the credit otherwise applicable to such
orders, if a certain threshold is satisfied by the Member will not have
an impact on intra-market competition. Specifically, the Exchange
believes that the proposal to establish an additional threshold by
which any Member or its Affiliate that qualifies for PCRP Tier 4 and
executes Priority Customer standard, non-paired complex volume at least
equal to or greater than their Priority Customer cPRIME Agency Order
volume, on a monthly basis, receives a credit of $0.22 per contract for
cPRIME Agency Orders instead of the credit otherwise applicable to such
orders in Tier 4, will encourage Members to submit both Priority
Customer standard, non-paired complex orders and Priority Customer
complex orders, which will increase liquidity, which benefits all
market participants by providing more trading opportunities and tighter
spreads. Because the proposal offers an additional threshold by which a
Member can receive a higher credit for cPRIME Agency Orders instead of
the credit otherwise applicable to such orders in Tier 4, and aligns
the credits otherwise offered for such orders in all tiers, the
Exchange believes that the proposed rule change will not impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
    The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues if they
deem fee levels at a particular venue to be excessive. In such an
environment, the Exchange must continually adjust its fees to remain
competitive with other exchanges and to attract order flow. The
Exchange believes that the proposed rule change reflects this
competitive environment because they modify the Exchange's fees in a
manner that encourages market participants to provide liquidity and to
send order flow to the Exchange.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\18\ and Rule

19b-4(f)(2) \19\ thereunder. At any time within 60 days of the filing
of the proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
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    \18\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \19\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-MIAX-2019-09 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MIAX-2019-09. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-MIAX-2019-09 and should be submitted on
or before April 9, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05085 Filed 3-18-19; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 227 (Monday, November 25, 2019)]
[Notices]
[Page 64885]
[FR Doc No: 2019-25521]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER20-387-000]

Traverse Wind Energy LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced Traverse Wind
Energy LLC's application for market-based rate authority, with an
accompanying rate tariff, noting that such application includes a
request for blanket authorization, under 18 CFR part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is December 9, 2019.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
5 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for electronic review in the
Commission's Public Reference Room in Washington, DC. There is an
eSubscription link on the website that enables subscribers to receive
email notification when a document is added to a subscribed docket(s).
For assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For TTY,
call<PHONE_NUMBER>.

    Dated: November 19, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019-25521 Filed 11-22-19; 8:45 am]
 BILLING CODE 6717-01-P