[Federal Register: July 30, 2010 (Volume 75, Number 146)]
[Rules and Regulations]
[Page 44917-44920]
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 180

[EPA-HQ-OPP-2010-0232; FRL-8835-3]

Castor Oil, Ethoxylated, Dioleate; Tolerance Exemption

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This regulation establishes an exemption from the requirement
of a tolerance for residues of castor oil, ethoxylated, dioleate; when
used as an inert ingredient in a pesticide chemical formulation under
40 CFR 180.960. Exponent, on behalf of Plant Impact plc, submitted a
petition to EPA under the Federal Food, Drug, and Cosmetic Act (FFDCA),
requesting an exemption from the requirement of a tolerance. This
regulation eliminates the need to establish a maximum permissible level
for residues of castor oil, ethoxylated, dioleate on food or feed
commodities.

DATES: This regulation is effective July 30, 2010. Objections and
requests for hearings must be received on or before September 28, 2010,
and must be filed in accordance with the instructions provided in 40
CFR part 178 (see also Unit I.C. of the SUPPLEMENTARY INFORMATION).

ADDRESSES: EPA has established a docket for this action under docket
identification (ID) number EPA-HQ-OPP-2010-0232. All documents in the
docket are listed in the docket index available at http://
www.regulations.gov. Although listed in the index, some information is
not publicly available, e.g., Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute. Certain
other material, such as copyrighted material, is not placed on the
Internet and will be publicly available only in hard copy form.
Publicly available docket materials are available in the electronic
docket at http://www.regulations.gov, or, if only available in hard
copy, at the OPP Regulatory Public Docket in Rm. S-4400, One Potomac
Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. The Docket
Facility is open from 8:30 a.m. to 4 p.m., Monday through Friday,
excluding legal holidays. The Docket Facility telephone number is (703)
305-5805.

FOR FURTHER INFORMATION CONTACT: Deirdre Sunderland, Registration
Division (7505P), Office of Pesticide Programs, Environmental
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-
0001; telephone number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this Action Apply to Me?

    You may be potentially affected by this action if you are an
agricultural producer, food manufacturer, or pesticide manufacturer.
Potentially affected entities may include, but are not limited to:
     Crop production (NAICS code 111).
     Animal production (NAICS code 112).
     Food manufacturing (NAICS code 311).
     Pesticide manufacturing (NAICS code 32532).
    This listing is not intended to be exhaustive, but rather provides
a guide for readers regarding entities likely to be affected by this
action. Other types of entities not listed in this unit could also be
affected. The North American Industrial Classification System (NAICS)
codes have been provided to assist you and others in determining
whether this action might apply to certain entities. If you have any
questions regarding the applicability of this action to a particular
entity, consult the person listed under FOR FURTHER INFORMATION
CONTACT.

B. How Can I Get Electronic Access to Other Related Information?

    You may access a frequently updated electronic version of 40 CFR
part 180 through the Government Printing Office's e-CFR site at http://
www.gpoaccess.gov/ecfr.

C. Can I File an Objection or Hearing Request?

    Under FFDCA section 408(g), 21 U.S.C. 346a, any person may file an
objection to any aspect of this regulation and may also request a
hearing on those objections. You must file your objection or request a
hearing on this regulation in accordance with the instructions provided
in 40 CFR part 178. To ensure proper receipt by EPA, you must identify
docket ID number EPA-HQ-OPP-2010-0232 in the subject line on the first
page of your submission. All objections and requests for a hearing must
be in writing, and must be received by the Hearing Clerk on or before
September 28, 2010. Addresses for mail and hand delivery of objections
and hearing requests are provided in 40 CFR 178.25(b).
    In addition to filing an objection or hearing request with the
Hearing Clerk as described in 40 CFR part 178, please

submit a copy of the filing that does not contain any CBI for inclusion
in the public docket. Information not marked confidential pursuant to
40 CFR part 2 may be disclosed publicly by EPA without prior notice.
Submit a copy of your non-CBI objection or hearing request, identified
by docket ID number EPA-HQ-OPP-2010-0232, by one of the following
methods.
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
     Mail: Office of Pesticide Programs (OPP) Regulatory Public
Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania
Ave., NW., Washington, DC 20460-0001.
     Delivery: OPP Regulatory Public Docket (7502P),
Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South
Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only
accepted during the Docket Facility's normal hours of operation (8:30
a.m. to 4 p.m., Monday through Friday, excluding legal holidays).
Special arrangements should be made for deliveries of boxed
information. The Docket Facility telephone number is<PHONE_NUMBER>.

II. Background and Statutory Findings

    In the Federal Register of May 19, 2010 (75 FR 28009) (FRL-8823-2),
EPA issued a notice pursuant to section 408 of FFDCA, 21 U.S.C. 346a,
announcing the receipt of a pesticide petition (PP 9E7648) filed by,
Exponent Inc., 1150 Connecticut Ave., NW., Suite 1100, Washington, DC
20036, on behalf of Plant Impact plc, 12 S. Preston Office Village,
Cuerdan Way, Bamber Bridge, Preston, PR5 6BL, United Kingdom. The
petition requested that 40 CFR 180.960 be amended by establishing an
exemption from the requirement of a tolerance for residues of castor
oil, ethoxylated, dioleate; 110531-96-9. That notice included a summary
of the petition prepared by the petitioner and solicited comments on
the petitioner's request. The Agency did not receive any comments
    Section 408(c)(2)(A)(i) of FFDCA allows EPA to establish an
exemption from the requirement for a tolerance (the legal limit for a
pesticide chemical residue in or on a food) only if EPA determines that
the exemption is ``safe.'' Section 408(c)(2)(A)(ii) of FFDCA defines
``safe'' to mean that ``there is a reasonable certainty that no harm
will result from aggregate exposure to the pesticide chemical residue,
including all anticipated dietary exposures and all other exposures for
which there is reliable information.'' This includes exposure through
drinking water and use in residential settings, but does not include
occupational exposure. Section 408(b)(2)(C) of FFDCA requires EPA to
give special consideration to exposure of infants and children to the
pesticide chemical residue in establishing an exemption from the
requirement of a tolerance and to ``ensure that there is a reasonable
certainty that no harm will result to infants and children from
aggregate exposure to the pesticide chemical residue. . . .'' and
specifies factors EPA is to consider in establishing an exemption.

III. Risk Assessment and Statutory Findings

    EPA establishes exemptions from the requirement of a tolerance only
in those cases where it can be shown that the risks from aggregate
exposure to pesticide chemical residues under reasonably foreseeable
circumstances will pose no appreciable risks to human health. In order
to determine the risks from aggregate exposure to pesticide inert
ingredients, the Agency considers the toxicity of the inert in
conjunction with possible exposure to residues of the inert ingredient
through food, drinking water, and through other exposures that occur as
a result of pesticide use in residential settings. If EPA is able to
determine that a finite tolerance is not necessary to ensure that there
is a reasonable certainty that no harm will result from aggregate
exposure to the inert ingredient, an exemption from the requirement of
a tolerance may be established.
    Consistent with FFDCA section 408(b)(2)(D), EPA has reviewed the
available scientific data and other relevant information in support of
this action and considered its validity, completeness and reliability
and the relationship of this information to human risk. EPA has also
considered available information concerning the variability of the
sensitivities of major identifiable subgroups of consumers, including
infants and children. In the case of certain chemical substances that
are defined as polymers, the Agency has established a set of criteria
to identify categories of polymers expected to present minimal or no
risk. The definition of a polymer is given in 40 CFR 723.250(b) and the
exclusion criteria for identifying these low-risk polymers are
described in 40 CFR 723.250(d). Castor oil, ethoxylated, dioleate
conforms to the definition of a polymer given in 40 CFR 723.250(b) and
meets the following criteria that are used to identify low-risk
polymers.
    1. The polymer is not a cationic polymer nor is it reasonably
anticipated to become a cationic polymer in a natural aquatic
environment.
    2. The polymer does contain as an integral part of its composition
the atomic elements carbon, hydrogen, and oxygen.
    3. The polymer does not contain as an integral part of its
composition, except as impurities, any element other than those listed
in 40 CFR 723.250(d)(2)(ii).
    4. The polymer is neither designed nor can it be reasonably
anticipated to substantially degrade, decompose, or depolymerize.
    5. The polymer is manufactured or imported from monomers and/or
reactants that are already included on the TSCA Chemical Substance
Inventory or manufactured under an applicable TSCA section 5 exemption.
    6. The polymer is not a water absorbing polymer with a number
average molecular weight (MW) greater than or equal to 10,000 daltons.
    Additionally, the polymer also meets as required the following
exemption criteria specified in 40 CFR 723.250(e).
    7. The polymer's number average MW of 1,260 is greater than 1,000
and less than 10,000 daltons. The polymer contains less than 10%
oligomeric material below MW 500 and less than 25% oligomeric material
below MW1,000, and the polymer does not contain any reactive functional
groups.
    Thus, castor oil, ethoxylated, dioleate meets the criteria for a
polymer to be considered low risk under 40 CFR 723.250. Based on its
conformance to the criteria in this unit, no mammalian toxicity is
anticipated from dietary, inhalation, or dermal exposure to castor oil,
ethoxylated, dioleate.

IV. Aggregate Exposures

    For the purposes of assessing potential exposure under this
exemption, EPA considered that castor oil, ethoxylated, dioleate could
be present in all raw and processed agricultural commodities and
drinking water, and that non-occupational non-dietary exposure was
possible. The number average MW of castor oil, ethoxylated, dioleate is
1,260 daltons. Generally, a polymer of this size would be poorly
absorbed through the intact gastrointestinal tract or through intact
human skin. Since castor oil, ethoxylated, dioleate conform to the
criteria that identify a low-risk polymer, there are no concerns for
risks associated with any potential exposure scenarios that are
reasonably foreseeable. The Agency has determined that a tolerance is
not necessary to protect the public health.

V. Cumulative Effects From Substances With a Common Mechanism of
Toxicity

    Section 408(b)(2)(D)(v) of FFDCA requires that, when considering
whether to establish, modify, or revoke a tolerance, the Agency
consider ``available information'' concerning the cumulative effects of
a particular pesticide's residues and ``other substances that have a
common mechanism of toxicity.''
    EPA has not found castor oil, ethoxylated, dioleate to share a
common mechanism of toxicity with any other substances, and castor oil,
ethoxylated, dioleate does not appear to produce a toxic metabolite
produced by other substances. For the purposes of this tolerance
action, therefore, EPA has assumed that castor oil, ethoxylated,
dioleate does not have a common mechanism of toxicity with other
substances. For information regarding EPA's efforts to determine which
chemicals have a common mechanism of toxicity and to evaluate the
cumulative effects of such chemicals, see EPA's website at http://
www.epa.gov/pesticides/cumulative.

VI. Additional Safety Factor for the Protection of Infants and Children

    Section 408(b)(2)(C) of FFDCA provides that EPA shall apply an
additional tenfold margin of safety for infants and children in the
case of threshold effects to account for prenatal and postnatal
toxicity and the completeness of the data base unless EPA concludes
that a different margin of safety will be safe for infants and
children. Due to the expected low toxicity of castor oil, ethoxylated,
dioleate, EPA has not used a safety factor analysis to assess the risk.
For the same reasons the additional tenfold safety factor is
unnecessary.

VII. Determination of Safety

    Based on the conformance to the criteria used to identify a low-
risk polymer, EPA concludes that there is a reasonable certainty of no
harm to the U.S. population, including infants and children, from
aggregate exposure to residues of castor oil, ethoxylated, dioleate.

VIII. Other Considerations

A. Analytical Enforcement Methodology

    An analytical method is not required for enforcement purposes since
the Agency is establishing an exemption from the requirement of a
tolerance without any numerical limitation.

B. International Residue Limits

    In making its tolerance decisions, EPA seeks to harmonize U.S.
tolerances with international standards whenever possible, consistent
with U.S. food safety standards and agricultural practices. EPA
considers the international maximum residue limits (MRLs) established
by the Codex Alimentarius Commission (Codex), as required by FFDCA
section 408(b)(4). The Codex Alimentarius is a joint U.N. Food and
Agriculture Organization/World Health Organization food standards
program, and it is recognized as an international food safety
standards-setting organization in trade agreements to which the United
States is a party. EPA may establish a tolerance that is different from
a Codex MRL; however, FFDCA section 408(b)(4) requires that EPA explain
the reasons for departing from the Codex level.
     The Codex has not established a MRL for castor oil, ethoxylated,
dioleate.

 IX. Conclusion

    Accordingly, EPA finds that exempting residues of castor oil,
ethoxylated, dioleate from the requirement of a tolerance will be safe.

 X. Statutory and Executive Order Reviews

    This final rule establishes a tolerance under section 408(d) of
FFDCA in response to a petition submitted to the Agency. The Office of
Management and Budget (OMB) has exempted these rules from review under
Executive Order 12866, entitled Regulatory Planning and Review (58 FR
51735, October 4, 1993). Because this final rule has been exempted from
review under Executive Order 12866, this final rule is not subject to
Executive Order 13211, entitled Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use (66 FR 28355,
May 22, 2001) or Executive Order 13045, entitled Protection of Children
from Environmental Health Risks and Safety Risks (62 FR 19885, April
23, 1997). This final rule does not contain any information collections
subject to OMB approval under the Paperwork Reduction Act (PRA), 44
U.S.C. 3501 et seq., nor does it involve any technical standards that
would require Agency consideration of voluntary consensus standards
pursuant to section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (NTTAA), Public Law 104-113, section 12(d) (15
U.S.C. 272 note).
    Since tolerances and exemptions that are established on the basis
of a petition under section 408(d) of FFDCA, such as the tolerance in
this final rule, do not require the issuance of a proposed rule, the
requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et
seq.) do not apply.
    This final rule directly regulates growers, food processors, food
handlers, and food retailers, not States or tribes, nor does this
action alter the relationships or distribution of power and
responsibilities established by Congress in the preemption provisions
of section 408(n)(4) of FFDCA. As such, the Agency has determined that
this action will not have a substantial direct effect on States or
tribal governments, on the relationship between the national government
and the States or tribal governments, or on the distribution of power
and responsibilities among the various levels of government or between
the Federal Government and Indian tribes, or otherwise have any unique
impacts on local governments. Thus, the Agency has determined that
Executive Order 13132, entitled Federalism (64 FR 43255, August 10,
1999) and Executive Order 13175, entitled Consultation and Coordination
with Indian Tribal Governments (65 FR 67249, November 9, 2000) do not
apply to this final rule. In addition, this final rule does not impose
any enforceable duty or contain any unfunded mandate as described under
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Public Law
104-4).
    Although this action does not require any special considerations
under Executive Order 12898, entitled Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income
Populations (59 FR 7629, February 16, 1994), EPA seeks to achieve
environmental justice, the fair treatment and meaningful involvement of
any group, including minority and/or low-income populations, in the
development, implementation, and enforcement of environmental laws,
regulations, and policies. As such, to the extent that information is
publicly available or was submitted in comments to EPA, the Agency
considered whether groups or segments of the population, as a result of
their location, cultural practices, or other factors, may have a
typical or disproportionately high and adverse human health impacts or
environmental effects from exposure to the pesticide discussed in this
document, compared to the general population.

XI. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., generally
provides that before a rule may take effect, the agency promulgating
the rule must

submit a rule report to each House of the Congress and to the
Comptroller General of the United States. EPA will submit a report
containing this rule and other required information to the U.S. Senate,
the U.S. House of Representatives, and the Comptroller General of the
United States prior to publication of this rule in the Federal
Register. This rule is not a ``major rule'' as defined by 5 U.S.C.
804(2).

List of Subjects in 40 CFR Part 180

    Environmental protection, Administrative practice and procedure,
Agricultural commodities, Pesticides and pests, Reporting and
recordkeeping requirements.

    Dated: July 22, 2010.
Lois Rossi,
Director, Registration Division, Office of Pesticide Programs.

0
Therefore, 40 CFR chapter I is amended as follows:

PART 180--[AMENDED]

0
1. The authority citation for part 180 continues to read as follows:

    Authority: 21 U.S.C. 321(q), 346a and 371.

0
2. In Sec. 180.960, the table is amended by adding alphabetically the
following polymer to read as follows:

Sec.  180.960  Polymers; exemptions from the requirement of a
tolerance.

* * * * *

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                        Polymer                                                  CAS No.
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
Castor oil, ethoxylated, dioleate, minimum number                                                    110531-96-9
 average molecular weight (in amu), 1260..............

                                                  * * * * * * *
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[FR Doc. 2010-18778 Filed 7-29; 8:45 am]
BILLING CODE 6560-50-S


[Federal Register: February 5, 2010 (Volume 75, Number 24)]
[Rules and Regulations]
[Page 5887]
[DOCID:fr05fe10-4]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Part 73

[Docket No. FDA-2007-C-0044] (formerly Docket No. 2007C-0474)

Listing of Color Additives Exempt From Certification; Astaxanthin
Dimethyldisuccinate; Confirmation of Effective Date

AGENCY: Food and Drug Administration, HHS.

ACTION: Final rule; confirmation of effective date.

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SUMMARY: The Food and Drug Administration (FDA) is confirming the
effective date of December 8, 2009, for the final rule that appeared in
the Federal Register of November 5, 2009. The final rule amended the
color additive regulations to provide for the safe use of astaxanthin
dimethyldisuccinate as a color additive in the feed of salmonid fish to
enhance the color of their flesh.

DATES:  The effective date for the final rule published in the Federal
Register of November 5, 2009 (74 FR 57248) is confirmed as December 8,
2009.

FOR FURTHER INFORMATION CONTACT: Felicia M. Ellison, Center for Food
Safety and Applied Nutrition (HFS-265), Food and Drug Administration,
5100 Paint Branch Pkwy., College Park, MD 20740-3835,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In the Federal Register of November 5, 2009
(74 FR 57248), FDA amended the color additive regulations to add Sec.
73.37 (21 CFR 73.37) to provide for the safe use of astaxanthin
dimethyldisuccinate as a color additive in the feed of salmonid fish to
enhance the color of their flesh.
    FDA gave interested persons until December 7, 2009, to file
objections or requests for a hearing. The agency received no objections
or requests for a hearing on the final rule. Therefore, FDA finds that
the effective date of the final rule that published in the Federal
Register of November 5, 2009, should be confirmed.

List of Subjects in 21 CFR Part 73

    Color additives, Cosmetics, Drugs, Medical devices.

0
Therefore, under the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
321, 341, 342, 343, 348, 351, 352, 355, 361, 362, 371, 379e) and under
authority delegated to the Commissioner of Food and Drugs, and
redelegated to the Director, Office of Food Additive Safety, notice is
given that no objections or requests for a hearing were filed in
response to the November 5, 2009, final rule. Accordingly, the
amendments issued thereby became effective December 8, 2009.

    Dated: January 22, 2010.
Mitchell A. Cheeseman,
Acting Director, Office of Food Additive Safety, Center for Food Safety
and Applied Nutrition.
[FR Doc. 2010-2522 Filed 2-4-10; 8:45 am]
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[Federal Register Volume 76, Number 200 (Monday, October 17, 2011)]
[Rules and Regulations]
[Pages 64005-64006]
[FR Doc No: 2011-26246]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 97

[Docket No. 30806; Amdt. No. 3446 ]

Standard Instrument Approach Procedures, and Takeoff Minimums and
Obstacle Departure Procedures; Miscellaneous Amendments

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This establishes, amends, suspends, or revokes Standard
Instrument Approach Procedures (SIAPs) and associated Takeoff Minimums
and Obstacle Departure Procedures for operations at certain airports.
These regulatory actions are needed because of the adoption of new or
revised criteria, or because of changes occurring in the National
Airspace System, such as the commissioning of new navigational
facilities, adding new obstacles, or changing air traffic requirements.
These changes are designed to provide safe and efficient use of the
navigable airspace and to promote safe flight operations under
instrument flight rules at the affected airports.

DATES: This rule is effective October 17, 2011. The compliance date for
each SIAP, associated Takeoff Minimums, and ODP is specified in the
amendatory provisions.
    The incorporation by reference of certain publications listed in
the regulations is approved by the Director of the Federal Register as
of October 17, 2011.

ADDRESSES: Availability of matters incorporated by reference in the
amendment is as follows:
    For Examination--
    1. FAA Rules Docket, FAA Headquarters Building, 800 Independence
Avenue, SW., Washington, DC 20591;
    2. The FAA Regional Office of the region in which the affected
airport is located;
    3. The National Flight Procedures Office, 6500 South MacArthur
Blvd., Oklahoma City, OK 73169 or
    4. The National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, call 202-741-
6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
    Availability--All SIAPs and Takeoff Minimums and ODPs are available
online free of charge. Visit http://www.nfdc.faa.gov to register.
Additionally, individual SIAP and Takeoff Minimums and ODP copies may
be obtained from:
    1. FAA Public Inquiry Center (APA-200), FAA Headquarters Building,
800 Independence Avenue, SW., Washington, DC 20591; or
    2. The FAA Regional Office of the region in which the affected
airport is located.

FOR FURTHER INFORMATION CONTACT: Richard A. Dunham III, Flight
Procedure Standards Branch (AFS-420), Flight Technologies and Programs
Divisions, Flight Standards Service, Federal Aviation Administration,
Mike Monroney Aeronautical Center, 6500 South MacArthur Blvd. Oklahoma
City, OK 73169 (Mail Address: P.O. Box 25082, Oklahoma City, OK 73125)
Telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: This rule amends Title 14 of the Code of
Federal Regulations, part 97 (14 CFR part 97), by establishing,
amending, suspending, or revoking SIAPS, Takeoff Minimums and/or ODPS.
The complete regulators description of each SIAP and its associated
Takeoff Minimums or ODP for an identified airport is listed on FAA form
documents which are incorporated by reference in this amendment under 5
U.S.C. 552(a), 1 CFR part 51, and 14 CFR part 97.20. The applicable FAA
Forms are FAA Forms 8260-3, 8260-4, 8260-5, 8260-15A, and 8260-15B when
required by an entry on 8260-15A.
    The large number of SIAPs, Takeoff Minimums and ODPs, in addition
to their complex nature and the need for a special format make
publication in the Federal Register expensive and impractical.
Furthermore, airmen do not use the regulatory text of the SIAPs,
Takeoff Minimums or ODPs, but instead refer to their depiction on
charts printed by publishers of aeronautical materials. The advantages
of incorporation by reference are realized and publication of the
complete description of each SIAP, Takeoff Minimums and ODP listed on
FAA forms is unnecessary. This amendment provides the affected CFR
sections and specifies the types of SIAPs and the effective dates of
the, associated Takeoff Minimums and ODPs. This amendment also
identifies the airport and its location, the procedure, and the
amendment number.

The Rule

    This amendment to 14 CFR part 97 is effective upon publication of
each separate SIAP, Takeoff Minimums and ODP as contained in the
transmittal. Some SIAP and Takeoff Minimums and textual ODP amendments
may have been issued previously by the FAA in a Flight Data Center
(FDC) Notice to Airmen (NOTAM) as an emergency action of immediate
flight safety relating directly to published aeronautical charts. The
circumstances which created the need for some SIAP and Takeoff Minimums
and ODP amendments may require making them effective in less than 30
days. For the remaining SIAPS and Takeoff Minimums and ODPS, an
effective date at least 30 days after publication is provided.
    Further, the SIAPs and Takeoff Minimums and ODPS contained in this
amendment are based on the criteria contained in the U.S. Standard for
Terminal Instrument Procedures (TERPS). In developing these SIAPS and
Takeoff Minimums and ODPs, the TERPS criteria were applied to the
conditions existing or anticipated at the affected airports. Because of
the close and immediate relationship between these SIAPs, Takeoff
Minimums and ODPs, and safety in air commerce, I find that notice and
public procedures before adopting these SIAPS, Takeoff Minimums and
ODPs are impracticable and contrary to the public interest and, where
applicable, that good cause exists for making some SIAPs effective in
less than 30 days.

Conclusion

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26,1979); and
(3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. For the same reason, the FAA
certifies that this amendment will not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 97

    Air traffic control, Airports, Incorporation by reference,
Navigation (air).

    Issued in Washington, DC, on September 30, 2011.
Ray Towles,
Deputy Director, Flight Standards Service.

Adoption of the Amendment

    Accordingly, pursuant to the authority delegated to me, Title 14,
Code of Federal Regulations, part 97 (14 CFR part 97) is amended by
establishing, amending, suspending, or revoking Standard Instrument
Approach Procedures and/or Takeoff Minimums and/or Obstacle Departure
Procedures effective at 0902 UTC on the dates specified, as follows:

PART 97--STANDARD INSTRUMENT APPROACH PROCEDURES

0
1. The authority citation for part 97 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40103, 40106, 40113, 40114, 40120,
44502, 44514, 44701, 44719, 44721-44722.

0
2. Part 97 is amended to read as follows:

Effective 20 OCT 2011

Albert Lea, MN, Albert Lea Muni, RNAV (GPS) RWY 17, Amdt 2
Albert Lea, MN, Albert Lea Muni, RNAV (GPS) RWY 35, Amdt 1
Albert Lea, MN, Albert Lea Muni, VOR RWY 17, Amdt 1
Albert Lea, MN, Albert Lea Muni, VOR/DME RWY 35, Amdt 1

Effective 17 NOV 2011

Blytheville, AR, Blytheville Muni, NDB RWY 18, Amdt 3, CANCELLED
Blytheville, AR, Blytheville Muni, NDB RWY 36, Amdt 2, CANCELLED
Windsor Locks, CT, Bradley Intl, COPTER ILS OR LOC RWY 6, Amdt 1
Fitzgerald, GA, Fitzgerald Muni, LOC RWY 1, Orig-B, CANCELLED
Iron Mountain Kingsford, MI, Ford, ILS OR LOC RWY 1, Amdt 12A
Lexington, MO, Lexington Muni, Takeoff Minimums and Obstacle DP,
Orig, CANCELLED
Lexington, MO, Lexington Muni, VOR/DME OR GPS RWY 22, Orig-A,
CANCELLED
Gulfport, MS, Gulfport-Biloxi Intl, ILS OR LOC RWY 32, Amdt 4C
Albemarle, NC, Stanly County, Takeoff Minimums and Obstacle DP, Amdt
1
Maxton, NC, Laurinburg-Maxton, RNAV (GPS) RWY 5, Amdt 1A
Fulton, NY, Oswego County, VOR RWY 33, Amdt 5A, CANCELLED
Steubenville, OH, Jefferson County Airpark, Takeoff Minimums and
Obstacle DP, Amdt 1
Clemson, SC, Oconee County Rgnl, NDB RWY 25, Amdt 1
Clemson, SC, Oconee County Rgnl, RNAV (GPS) RWY 7, Amdt 2
Clemson, SC, Oconee County Rgnl, RNAV (GPS) RWY 25, Amdt 2
Clemson, SC, Oconee County Rgnl, Takeoff Minimums and Obstacle DP,
Amdt 3
Conway, SC, Conway-Horry County, NDB RWY 4, Orig-B
Conway, SC, Conway-Horry County, NDB RWY 22, Amdt 1
Conway, SC, Conway-Horry County, RNAV (GPS) RWY 4, Amdt 1
Conway, SC, Conway-Horry County, RNAV (GPS) RWY 22, Amdt 1
Houston, TX, Dan Jones Intl, Takeoff Minimums and Obstacle DP, Orig
Pearsall, TX, Mc Kinley Field, Takeoff Minimums and Obstacle DP,
Orig
Weatherford, TX, Parker County, Takeoff Minimums and Obstacle DP,
Orig
Beckley, WV, Raleigh County Memorial, Takeoff Minimums and Obstacle
DP, Amdt 5

Effective 15 DEC 2011

Anvik, AK, Anvik, NDB RWY 35, Orig, CANCELLED
Osceola, IA, Osceola Muni, Takeoff Minimums and Obstacle DP, Orig
Bloomington/Normal, IL, Central IL Rgnl Arpt at Bloomington-Normal,
ILS OR LOC RWY 29, Amdt 10A
Rantoul IL, Rantoul Natl Avn Cntr-Frank Elliott Fld, Takeoff
Minimums and Obstacle DP, Amdt 1
Dodge City, KS, Dodge City Rgnl, Takeoff Minimums and Obstacle DP,
Orig
Fitchburg, MA, Fitchburg Muni, NDB-A, Amdt 4B
Nantucket, MA, Nantucket Memorial, RNAV (GPS) RWY 33, Orig-B
Easton, MD, Easton/Newnam Field, RNAV (GPS) RWY 22, Amdt 1
Longville, MN, Longville Muni, Takeoff Minimums and Obstacle DP,
Orig
McGregor, MN, Isedor Iverson, Takeoff Minimums and Obstacle DP, Orig
Park Rapids, MN, Park Rapids Muni-Konshok Field, Takeoff Minimums
and Obstacle DP, Orig
Red Wing, MN, Red Wing Rgnl, RNAV (GPS) RWY 27, Amdt 2B
Malta, MT, Malta, RNAV (GPS) RWY 8, Amdt 1
Malta, MT, Malta, RNAV (GPS) RWY 26, Amdt 1
Malta, MT, Malta, Takeoff Minimums and Obstacle DP, Orig
Miles City, MT, Frank Wiley Field, Takeoff Minimums and Obstacle DP,
Orig
Miles City, MT, Frank Wiley Field, VOR RWY 4, Amdt 12
Miles City, MT, Frank Wiley Field, VOR/DME RWY 4, Orig
Plymouth, NC, Plymouth Muni, Takeoff Minimums and Obstacle DP, Amdt
2
Beatrice, NE, Beatrice Muni, Takeoff Minimums and Obstacle DP, Amdt
1
Tonopah, NV, Tonopah, GPS RWY 15, Orig-B, CANCELLED
Tonopah, NV, Tonopah, RNAV (GPS) RWY 15, Orig
Aiken, SC, Aiken Muni, NDB RWY 25, Amdt 10A
Aiken, SC, Aiken Muni, VOR/DME-A, Amdt 1A
Bumpass, VA, Lake Anna, RNAV (GPS) RWY 8, Orig
Bumpass, VA, Lake Anna, RNAV (GPS) RWY 26, Orig
Bumpass, VA, Lake Anna, Takeoff Minimums and Obstacle DP, Orig
Renton, WA, Renton Muni, NDB RWY 16, Amdt 7
Renton, WA, Renton Muni, RNAV (GPS) Y RWY 16, Amdt 4
Renton, WA, Renton Muni, RNAV (GPS) Z RWY 16, Amdt 2
Renton, WA, Renton Muni, Takeoff Minimums and Obstacle DP, Amdt 8
Janesville, WI, Southern Wisconsin Rgnl, ILS OR LOC RWY 32, Amdt 1A
Janesville, WI, Southern Wisconsin Rgnl, VOR RWY 4, Amdt 27,
CANCELLED
Janesville, WI, Southern Wisconsin Rgnl, VOR/DME RWY 22, Amdt 1,
CANCELLED
Newcastle, WY, Mondell Field, RNAV (GPS) RWY 13, Orig
Newcastle, WY, Mondell Field, RNAV (GPS) RWY 31, Orig

[FR Doc. 2011-26246 Filed 10-14-11; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 231 (Thursday, December 1, 2016)]
[Notices]
[Pages 86760-86762]
[FR Doc No: 2016-28830]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79402; File No. SR-NYSEArca-2016-131]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change Relating To Listing and Trading of Shares of the
Virtus Enhanced U.S. Equity ETF Under Commentary .01 to NYSE Arca
Equities Rule 5.2(j)(3)

November 25, 2016.

I. Introduction

    On October 3, 2016, NYSE Arca, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade
shares (``Shares'') of the Virtus Enhanced U.S. Equity ETF (``Fund''),
a series of Virtus ETF Trust II (``Trust''), under Commentary .01 to
NYSE Arca Equities Rule 5.2(j)(3) (``Investment Company Units''). The
proposed rule change was published for comment in the Federal Register
on October 20, 2016.\3\ The Commission received no comments on the
proposed rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 79101 (October 14,
2016), 81 FR 72630 (``Notice'').
---------------------------------------------------------------------------

II. Exchange's Description of the Proposal \4\
---------------------------------------------------------------------------

    \4\ The Commission notes that additional information regarding
the Fund, the Trust, and the Shares, including investment
strategies, risks, creation and redemption procedures, fees,
portfolio holdings disclosure policies, calculation of net asset
value (``NAV''), distributions, and taxes, among other things, can
be found in the Notice, and the Registration Statement, as
applicable. See Notice, supra note 3, and Registration Statement,
infra note 6.
---------------------------------------------------------------------------

    The Exchange proposes to list and trade Shares of the Fund under
Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3), which governs the
listing and trading of Investment Company Units on the Exchange. The
Exchange represents that it has submitted the proposed rule change
because the underlying index of the Fund does not meet all of the
generic listing requirements of Commentary .01(a)(A) to NYSE Arca
Equities Rule 5.2(j)(3), applicable to the listing of Investment
Company Units based upon an index of ``US Component Stocks.''
Specifically, as discussed in the Notice,\5\ options on the S&P 500
index may be Index components. Consequently, the Index is not composed
entirely of US Component Stocks, and therefore the Shares do not
satisfy the requirements for generic listing under Commentary .01(a)(A)
to NYSE Arca Equities Rule 5.2(j)(3).
---------------------------------------------------------------------------

    \5\ See Notice, supra note 3, 81 FR at 72631.
---------------------------------------------------------------------------

    The Fund will be an index-based exchange traded fund (``ETF''). The
Shares will be offered by the Trust, which is registered with the
Commission as an investment company and has filed a registration
statement on Form N-1A (the ``Registration Statement'') with the
Commission on behalf of the Fund.\6\
---------------------------------------------------------------------------

    \6\ The Exchange represents that, on September 1, 2016, the
Trust filed a Registration Statement on Form N-1A under the
Securities and Exchange Act of 1933 and the Investment Company Act
of 1940 (``1940 Act'') (File Nos. 333-206600 and 811-23078).
According to the Exchange, the Trust has obtained certain exemptive
relief from the Commission under the 1940 Act. See Investment
Company Act Release No. 30825 (December 11, 2013) (File No. 812-
14212).
---------------------------------------------------------------------------

    The investment adviser to the Fund will be Virtus ETF Advisers LLC
(``Adviser''). ETF Distributors LLC will serve as the distributor
(``Distributor'') of Fund shares on an agency basis. The Bank of New
York Mellon (``Administrator'') will be the administrator, custodian
and transfer agent for the Fund.

A. The Fund's Principal Investments

    According to the Exchange, the Fund's investment objective is to
seek investment results that, before fees and expenses, closely
correspond to the price and yield performance of the Rampart Enhanced
U.S. Equity Index (``Index'').\7\ Under normal market conditions,\8\
the Fund will invest not less than 80% of its total assets in component
securities of the Index. Additionally, under normal market conditions,
the Fund will invest not less than 80% of its total assets in U.S.
exchange-traded common stocks. The Fund will also seek to generate
additional income by writing SPX call options and will seek additional
capital appreciation by purchasing SPX call options.
---------------------------------------------------------------------------

    \7\ According to the Exchange, the Index was developed by
Rampart Investment Management Company, LLC (``Index Provider''), and
is calculated and maintained by NYSE Global Index Group (``Index
Calculation Agent''). The Index Provider is affiliated with the
Adviser and the Distributor. The Index Calculation Agent is not
affiliated with the Adviser, Distributor, Administrator, or the
Trust.
    \8\ The term ``normal market conditions'' is defined in NYSE
Arca Equities Rule 8.600(c)(5). On a temporary basis, including for
defensive purposes, during the initial invest-up period and during
periods of high cash inflows or outflows, the Fund may depart from
its principal investment strategies; for example, it may hold a
higher than normal proportion of its assets in cash. During such
periods, the Fund may not be able to achieve its investment
objectives. The Fund may adopt a defensive strategy when the Adviser
believes securities in which the Fund normally invests have elevated
risks due to political or economic factors and in other
extraordinary circumstances.
---------------------------------------------------------------------------

B. The Fund's Non-Principal Investments

    While the Fund, under normal market conditions will invest at least
80% of its net assets in the securities and financial instruments
described above, the Fund may invest its remaining assets in the
securities and financial instruments described below.
    The Fund may invest in short-term, high quality securities issued
or guaranteed by the U.S. government (in addition to U.S. Treasury
securities) and non-U.S. governments, and each of their agencies and
instrumentalities; debt securities issued by U.S. government sponsored
enterprises; repurchase

agreements backed by U.S. government and non-U.S. government
securities; money market mutual funds; and deposit and other
obligations of U.S. and non-U.S. banks and financial institutions
(``Money Market Instruments'').
    The Fund may invest in ETFs.\9\
---------------------------------------------------------------------------

    \9\ The Fund will not invest in leveraged ETFs, (e.g., 2X or 3X)
or inverse or inverse leveraged ETFs (e.g., -1X or -2X).
---------------------------------------------------------------------------

    The Fund may invest in U.S. exchange-traded equity index futures
contracts.
    The Fund may invest in U.S. exchange-traded index options (other
than SPX) and U.S. exchange-traded options on ETFs.
    The Fund may invest in U.S. exchange-traded options on futures
contacts and U.S. exchange-traded options on stocks.

C. Investment Restrictions

    The Exchange represents that the Fund will not invest in any non-
U.S. equity securities. The Fund's investments will be consistent with
the Fund's investment objective and will not be used to enhance
leverage.
    The Fund intends to qualify each year as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as
amended.\10\
---------------------------------------------------------------------------

    \10\ 26 U.S.C. 851.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \11\
and the rules and regulations thereunder applicable to a national
securities exchange.\12\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\13\ which
requires, among other things, that the Exchange's rules be 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 regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f.
    \12\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \13\ 17 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission also finds that the proposal to list and trade the
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Act,\14\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last-
sale information for the Shares will be available via the Consolidated
Tape Association (``CTA''). The current value of the Index will be
widely disseminated by one or more major market data vendors as
required by NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(b)(iii).
In addition, during the Core Trading Session (9:30 a.m. to 4:00 p.m.
Eastern Time), an IIV for the Shares will be disseminated by one or
more major market data vendors and updated at least every 15
seconds.\15\ Information regarding market price and trading volume of
the Shares will be continually available on a real-time basis
throughout the day on brokers' computer screens and other electronic
devices. The Web site for the Fund will include the prospectus for the
Fund and additional data relating to the net asset value (``NAV'') and
other applicable quantitative information. Information regarding each
portfolio holding will be disclosed by the Trust on each business day
before commencement of trading in Shares in the Core Trading Session on
the Exchange.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \15\ The Exchange states that it understands that several major
market data vendors display and/or make widely available IIV's taken
from the CTA or other data feeds. See Notice, supra note 3, 81 FR at
72634, n.20.
---------------------------------------------------------------------------

    The Commission believes that the proposal to list and trade the
Shares is reasonably designed to promote fair disclosure of information
that may be necessary to price the Shares appropriately and to prevent
trading when a reasonable degree of transparency cannot be assured. The
Exchange may consider all relevant factors in exercising its discretion
to halt or suspend trading in the Shares of a Fund. Shares of the Fund
will be halted if the ``circuit breaker'' parameters in NYSE Arca
Equities Rule 7.12 are reached. Trading may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) The extent to
which trading is not occurring in the securities and/or the financial
instruments of the Fund; or (2) whether other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present.
    If the IIV, Index value or the value of the Index components is not
being disseminated as required, the Exchange may halt trading during
the day in which the disruption occurs; if the interruption persists
past the day in which it occurred, the Exchange will halt trading no
later than the beginning of the trading day following the
interruption.\16\ The Exchange will obtain a representation from the
Fund that the NAV for the Fund will be calculated daily and will be
made available to all market participants at the same time.\17\ Under
NYSE Arca Equities Rule 7.34(a)(5), if the Exchange becomes aware that
the NAV for the Fund is not being disseminated to all market
participants at the same time, it will halt trading in the Shares until
such time as the NAV is available to all market participants.
---------------------------------------------------------------------------

    \16\ See id. at 72634.
    \17\ See id.
---------------------------------------------------------------------------

    In support of this proposal, the Exchange has made the following
representations:
    (1) The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rules 5.2(j)(3) and 5.5(g)(2), except
that the Index will not meet the requirements of NYSE Arca Equities
Rule 5.2(j)(3), Commentary .01(a)(A)(1-5) in that the Index will
include options.
    (2) The Exchange represents that trading in the Shares will be
subject to the existing Exchange trading surveillances procedures, as
well as cross-market surveillances administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the
Exchange.\18\ The Exchange represents that these procedures are
adequate to properly monitor Exchange trading of the Shares in all
trading sessions and to deter and detect violations of Exchange rules
and federal securities laws applicable to trading on the Exchange.\19\
---------------------------------------------------------------------------

    \18\ FINRA conducts cross-market surveillances on behalf of the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
    \19\ See id.
---------------------------------------------------------------------------

    (3) The Exchange or FINRA, on behalf of the Exchange will
communicate as needed regarding trading in the Shares, ETFs, options,
and futures with markets and other entities that are members of the
Intermarket Surveillance Group (``ISG''), and the Exchange or FINRA, on
behalf of the Exchange may obtain trading information regarding trading
in the Shares, ETFs, options, and futures from those markets and other
entities that are members of ISG or with which

the Exchange has in place a comprehensive surveillance sharing
agreement.\20\ The Exchange is able to access from FINRA, as needed,
trade information for certain fixed income securities held by the Fund
reported to FINRA's Trade Reporting and Compliance Engine.\21\
---------------------------------------------------------------------------

    \20\ For a list of the current members of ISG, see
www.isgportal.org.
    \21\ See id.
---------------------------------------------------------------------------

    (4) For initial and continued listing of the Shares, the Trust is
required to comply with Rule 10A-3 under the Act.\22\
---------------------------------------------------------------------------

    \22\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (5) Prior to the commencement of trading of Shares in the Fund, the
Exchange will inform its ETP Holders in an Information Bulletin
(``Bulletin'') of the special characteristics and risks associated with
trading the Shares. Specifically, the Bulletin will discuss the
following: (a) The procedures for purchases and redemptions of Shares
in Creation Unit aggregations (and that Shares are not individually
redeemable); (b) NYSE Arca Equities Rule 9.2(a), which imposes a duty
of due diligence on its ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (c) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated IIV or Index value will not be calculated or
publicly disseminated; (d) how information regarding the IIV and Index
value will be disseminated; (e) the requirement that ETP Holders
deliver a prospectus to investors purchasing newly issued Shares prior
to or concurrently with the confirmation of a transaction; and (f)
trading information.
    (6) A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange.\23\
---------------------------------------------------------------------------

    \23\ See Notice, supra note 3, 81 FR at 76234.
---------------------------------------------------------------------------

    (7) The Exchange represents that all statements and representations
made in this filing regarding (a) the description of the portfolio, (b)
limitations on portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance procedures shall
constitute continued listing requirements for listing the Shares on the
Exchange.\24\
---------------------------------------------------------------------------

    \24\ See id. at 72635.
---------------------------------------------------------------------------

    (8) The issuer has represented to the Exchange that it will advise
the Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will surveil for compliance with the
continued listing requirements. If the Fund is not in compliance with
the applicable listing requirements, the Exchange will commence
delisting procedures under NYSE Arca Equities Rule 5.5(m).\25\
---------------------------------------------------------------------------

    \25\ See id.
---------------------------------------------------------------------------

    This approval order is based on all of the Exchange's
representations, including those set forth above and in the Notice.
    For the foregoing reasons, the Commission finds that the proposed
rule change, is consistent with Section 6(b)(5) of the Act \26\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\27\ that the proposed rule change (SR-NYSEArca-2016-131), be, and
it hereby is, approved.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78s(b)(2).
    \28\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
Brent J. Fields,
Secretary.
[FR Doc. 2016-28830 Filed 11-30-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Rules and Regulations]
[Pages 19176-19179]
[FR Doc No: 2018-09338]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2018-0380; Product Identifier 2018-NE-14-AD; Amendment
39-19267; AD 2018-09-10]
RIN 2120-AA64

Airworthiness Directives; CFM International S.A. Turbofan Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for all CFM
International S.A. (CFM) Model CFM56-7B engines. This AD requires
initial and repetitive inspections of the concave and convex sides of
the fan blade dovetail to detect cracking and replacement of any blades
found cracked. This AD was prompted by a recent engine failure due to a
fractured fan blade, that resulted in the engine inlet cowl
disintegrating and debris penetrating the fuselage, causing a loss of
pressurization, and prompting an emergency descent. We are issuing this
AD to address the unsafe condition on these products.

DATES: This AD is effective May 14, 2018.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of May 14,
2018.
    We must receive comments on this AD by June 18, 2018.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking 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 final rule, contact CFM
International Inc., Aviation Operations Center, 1 Neumann Way, M/D Room
285, Cincinnati, OH 45125; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>;
email: [email protected]. You may view this service
information at the FAA, Engine and Propeller Standards Branch, 1200
District Avenue, Burlington, MA. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>. It is also available on
the internet at http://www.regulations.gov by searching for and
locating Docket No. FAA-2018-0380.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
0380; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, the regulatory evaluation, any comments received, and
other information. The street address for the Docket Operations (phone:
800-647-5527) is listed above. Comments will be available in the AD
docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Christopher McGuire, Aerospace
Engineer, ECO Branch, FAA, 1200 District Avenue, Burlington, MA 01803;
phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION:

Discussion

    A recent event involving an engine failure due to a fractured fan
blade resulted in the engine inlet cowl disintegrating and debris
penetrating the fuselage, causing a loss of pressurization, and
prompting an emergency descent. One passenger fatality occurred as a
result. In response to this event, the FAA issued Emergency

AD 2018-09-51 (``AD 2018-09-51''), to address certain high-time CFM56-
7B engines, specifically including those with 30,000 or more total
accumulated flight cycles since new. AD 2018-09-51 requires a one-time
ultrasonic inspection (USI) of the concave and convex sides of the fan
blade dovetail.
    Since the issuance of AD 2018-09-51, the FAA has been working
closely with CFM to develop an additional compliance plan to address
the risk of fan blade failure for the entire CFM56-7B fleet. This AD
addresses the unsafe condition affecting CFM56-7B engines by requiring
initial and repetitive inspections of fan blades based on accumulated
fan blade cycles. This condition, if not addressed, could result in fan
blade failure due to cracking, which could lead to in an engine in-
flight shutdown (IFSD), uncontained release of debris, damage to the
airplane, and possible airplane decompression. We are issuing this AD
to address the unsafe condition on these products.

Related Service Information Under 1 CFR part 51

    We reviewed CFM Service Bulletin (SB) CFM56-7B S/B 72-1033, dated
April 20, 2018, and Subtask 72-21-01-220-091, of Task 72-21-01-200-001,
from the CFM56-7B Engine Shop Manual (ESM), Revision 57, dated January
15, 2018. CFM SB CFM56-7B S/B 72-1033 describes procedures for
performing a USI of the affected fan blades. Subtask 72-21-01-220-091,
of Task 72-21-01-200-001, from the CFM56-7B ESM, describes procedures
for performing an eddy current inspection (ECI) of the affected fan
blades. This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Other Related Service Information

    We also reviewed CFM SB CFM56-7B S/B 72-1019, dated March 24, 2017,
and Revision 1, dated June 13, 2017; CFM SB CFM56-7B S/B 72-1024, dated
July 26, 2017; and General Electric Field Support Technology (FST)
procedure 2370, dated December 9, 2016. These SBs and the FST procedure
provide information on performing the USI inspection.

Other Related Rulemaking

    The FAA previously issued a Notice of Proposed Rulemaking (see
Docket No. FAA-2017-0313 at http://www.regulations.gov), to address an
unsafe condition based on a similar event that occurred in 2016. We
will be withdrawing that proposal because this new action represents a
more comprehensive corrective action plan than previously proposed.

FAA's Determination

    We are issuing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of the same type design.

AD Requirements

    This AD requires initial and repetitive USIs or ECIs of certain fan
blades and, if they fail the inspection, their replacement with parts
eligible for installation.

FAA's Justification and Determination of the Effective Date

    An unsafe condition exists that requires the immediate adoption of
this AD without providing an opportunity for public comments prior to
adoption. The FAA has found that the risk to the flying public
justifies waiving notice and comment prior to adoption of this rule
because certain fan blades must be inspected, and, if needed, replaced
before further flight. Failure to inspect and replace these parts
within the required compliance times could lead to failure of the fan
blades, engine IFSD, uncontained release of debris, damage to the
airplane, and possible airplane decompression. Therefore, we find good
cause that notice and opportunity for prior public comment are
impracticable. In addition, for the reasons stated above, we find that
good cause exists for making this amendment effective in less than 30
days.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety and was not preceded by notice and an opportunity for public
comment. However, we invite you to send any written data, views, or
arguments about this final rule. Send your comments to an address
listed under the ADDRESSES section. Include the docket number FAA-2018-
0380 and Product Identifier 2018-NE-14-AD at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this final rule. We will
consider all comments received by the closing date and may amend this
final rule 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 final rule.

Costs of Compliance

    We estimate that this AD affects 3,716 engines installed on
airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Inspect engine fan blade..............  2 work-hours x $85 per                $0            $170        $631,720
                                         hour = $170.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary replacements
that would be required based on the results of the inspection. We have
no way of determining the number of aircraft that might need these
replacements:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Replace fan blade.............................  1 work-hour x $85 per hour = $85          $8,500          $8,585
----------------------------------------------------------------------------------------------------------------

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.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to engines, propellers, and
associated appliances to the Manager, Engine and Propeller Standards
Branch, Policy and Innovation Division.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) 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.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2018-09-10 CFM International S.A.: Amendment 39-19267; Docket No.
FAA-2018-0380; Product Identifier 2018-NE-14-AD.

(a) Effective Date

    This AD is effective May 14, 2018.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to CFM International S.A. (CFM) CFM56-7B20,
CFM56-7B22, CFM56-7B22/B1, CFM56-7B24, CFM56-7B24/B1, CFM56-7B26,
CFM56-7B26/B2, CFM56-7B27, CFM56-7B27A, CFM56-7B26/B1, CFM56-7B27/
B1, CFM56-7B27/B3, CFM56-7B20/2, CFM56-7B22/2, CFM56-7B24/2, CFM56-
7B26/2, CFM56-7B27/2, CFM56-7B20/3, CFM56-7B22/3, CFM56-7B22/3B1,
CFM56-7B24/3, CFM56-7B24/3B1, CFM56-7B26/3, CFM56-7B26/3B1, CFM56-
7B26/3B2, CFM56-7B27/3, CFM56-7B27/3B1, CFM56-7B27/3B3, CFM56-7B27A/
3, CFM56-7B26/3F, CFM56-7B26/3B2F, CFM56-7B27/3F, CFM56-7B27/3B1F,
CFM56-7B20E, CFM56-7B22E, CFM56-7B22E/B1, CFM56-7B24E, CFM56-7B24E/
B1, CFM56-7B26E, CFM56-7B26E/B1, CFM56-7B26E/B2, CFM56-7B27AE,
CFM56-7B27E, CFM56-7B27E/B1, CFM56-7B27E/B3, CFM56-7B26E/F, CFM56-
7B26E/B2F, CFM56-7B27E/F, and CFM56-7B27E/B1F engine models.

(d) Subject

    Joint Aircraft System Component (JASC) Code 7230, Turbine Engine
Compressor Section.

(e) Unsafe Condition

    This AD was prompted by a recent engine failure due to a fan
blade fracture that resulted in the engine inlet cowl disintegrating
and debris penetrating the fuselage, causing a loss of
pressurization, and prompting an emergency descent. We are issuing
this AD to prevent failure of the fan blade. The unsafe condition,
if not addressed, could result in failure of the fan blade, the
engine inlet cowl disintegrating and debris penetrating the
fuselage, causing a loss of pressurization, and prompting an
emergency descent.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Required Actions

    (1) Perform an ultrasonic inspection (USI) or eddy current
inspection (ECI) of the concave and convex sides of the fan blade
dovetail as follows:
    (i) Perform an initial inspection on each fan blade before the
fan blade accumulates 20,000 cycles since new, or within 113 days
from the effective date of this AD, whichever occurs later.
    (ii) If cycles since new on a fan blade is unknown, perform an
initial inspection within 113 days from the effective date of this
AD.
    (iii) Thereafter, repeat this inspection no later than 3,000
cycles since the last inspection.
    (iv) Use the Accomplishment Instructions, paragraphs 3.A.(3)(a)
through (i), of CFM Service Bulletin (SB) CFM56-7B S/B 72-1033,
dated April 20, 2018, to perform a USI or use the instructions in
subtask 72-21-01-220-091, of task 72-21-01-200-001, from CFM CFM56-
7B Engine Shop Manual, Revision 57, dated January 15, 2018, to
perform an ECI.
    (2) If any unserviceable indication, as specified in the
applicable service information in paragraph (g)(1)(iv) of this AD,
is found during the inspections required by paragraph (g) of this
AD, replace the fan blade before further flight with a part eligible
for installation.

(h) Installation Prohibition

    Do not install any replacement fan blade unless it meets one of
the following criteria:
    (1) The replacement fan blade has fewer than 20,000 cycles since
new, or;
    (2) The replacement fan blade has been inspected within the last
300 cycles in accordance with paragraph (g) of this AD.

(i) Definition

    For the purpose of this AD, a ``replacement fan blade'' is a fan
blade that is being installed into an engine from which it was not
previously removed. Removing and reinstalling a fan blade for the
purpose of relubrication is not subject to the Installation
Prohibition of this AD.

(j) Credit for Previous Actions

    (1) You may take credit for the USI required by paragraph (g) of
this AD, if those actions were performed before the effective date
of this AD using CFM SB CFM56-7B S/B 72-1019, dated March 24, 2017;
or Revision 1, dated June 13, 2017; or CFM SB CFM56-7B S/B 72-1024,
dated July 26, 2017; or General Electric Field Support Technology
procedure 2370, dated December 9, 2016.
    (2) You may take credit for the ECI required by paragraph (g) of
this AD, if those actions were performed before the effective date
of this AD using the instructions in subtask 72-21-01-220-091, of
task 72-21-01-200-001, from CFM56-7B Engine Shop Manual, earlier
than Revision 57, dated January 15, 2018.

(k) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, ECO Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or local Flight Standards District Office, as
appropriate. If sending information directly to the manager of the
certification office, send it to the attention of the person
identified in paragraph (l) of this AD. You may email your request
to: [email protected].
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(l) Related Information

    For more information about this AD, contact Christopher McGuire,
Aerospace Engineer, ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
[email protected].

(m) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) CFM International, S.A. (CFM) Service Bulletin CFM56-7B S/B
72-1033, dated April 20, 2018.
    (ii) Subtask 72-21-01-220-091, of Task 72-21-01-200-001, from
the CFM CFM56-7B Engine Shop Manual, Revision 57, dated January 15,
2018.
    (3) For CFM service information identified in this AD, contact
CFM International Inc., Aviation Operations Center, 1 Neumann Way,
M/D Room 285, Cincinnati, OH 45125; phone:<PHONE_NUMBER>; fax: 877-
432-3329; email: [email protected].
    (4) You may view this service information at the FAA, Engine and
Propeller Standards Branch, Policy and Innovation Division, 1200
District Avenue, Burlington, MA. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Burlington, Massachusetts, on April 27, 2018.
Robert J. Ganley,
Manager, Engine & Propeller Standards Branch, Aircraft Certification
Service.
[FR Doc. 2018-09338 Filed 5-1-18; 8:45 am]
BILLING CODE 4910-13-P