[Federal Register Volume 85, Number 64 (Thursday, April 2, 2020)]
[Rules and Regulations]
[Pages 18431-18435]
[FR Doc No: 2020-06786]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2019-0876; Product Identifier 2019-NM-070-AD; Amendment
39-19877; AD 2020-05-27]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc., Airplanes

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

ACTION: Final rule.

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SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
certain Bombardier, Inc., Model BD-700-1A10 and BD-700-1A11 airplanes.
This AD was prompted by a report that cracking was discovered in a
channel within a structural support member for the rudder quadrant,
rudder feel unit assembly, and environmental control system due to
fatigue. This AD requires repetitive inspections of the rudder quadrant
box assembly for any cracking, and modification of the rudder quadrant
box assembly. The FAA issuing this AD to address the unsafe condition
on these products.

DATES: This AD is effective May 7, 2020.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of May 7, 2020.

ADDRESSES: For service information identified in this final rule,
contact Bombardier, Inc., 400 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 1Y9, Canada; telephone<PHONE_NUMBER>; fax 514-855-
7401; email<EMAIL_ADDRESS>internet https://www.bombardier.com. You may view this service information at the FAA,
Transport Standards Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call 206-
231-3195. It is also available on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2019-
0876.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2019-
0876; 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 address for Docket Operations is U.S. Department
of Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Andrea Jimenez, Aerospace Engineer,
Airframe and Mechanical Systems Section, FAA, New York ACO Branch, 1600
Stewart Avenue, Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued Canadian AD CF-2019-11, dated March
22, 2019 (also referred to as the Mandatory Continuing Airworthiness
Information, or ``the MCAI''), to correct an unsafe condition for
certain Bombardier, Inc., Model BD-700-1A10 and BD-700-1A11 airplanes.
You may examine the MCAI in the AD docket on the internet at https://www.regulations.gov by searching for

and locating Docket No. FAA-2019-0876.
    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 by adding an AD that would apply to certain Bombardier,
Inc., Model BD-700-1A10 and BD-700-1A11 airplanes. The NPRM published
in the Federal Register on December 16, 2019 (84 FR 68370). The NPRM
was prompted by a report that cracking was discovered in a channel
within a structural support member for the rudder quadrant, rudder feel
unit assembly, and environmental control system due to fatigue. The
NPRM proposed to require repetitive inspections of the rudder quadrant
box assembly for any cracking, and modification of the rudder quadrant
box assembly. The FAA is issuing this AD to address cracking in the
rudder quadrant support structure, which can lead to progressive
deterioration in the performance of the systems it supports, and could
eventually lead to uncommanded rudder movement and bleed air leakage.
See the MCAI for additional background information.

Comments

    The FAA gave the public the opportunity to participate in
developing this final rule. The FAA received no comments on the NPRM or
on the determination of the cost to the public.

Conclusion

    The FAA reviewed the relevant data and determined that air safety
and the public interest require adopting this final rule as proposed,
except for minor editorial changes. The FAA has determined that these
minor changes:
     Are consistent with the intent that was proposed in the
NPRM for addressing the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Related Service Information Under 1 CFR Part 51

    Bombardier has issued the following service information.
     Bombardier Service Bulletin 700-53-054, Basic Issue, dated
October 1, 2018.
     Bombardier Service Bulletin 700-53-5013, Basic Issue,
dated October 1, 2018.
     Bombardier Service Bulletin 700-53-6012, Basic Issue,
dated October 1, 2018.
     Bombardier Service Bulletin 700-1A11-53-029, Basic Issue,
dated October 1, 2018.
    This service information describes procedures for repetitive
detailed visual inspections of the rudder quadrant box assembly for any
cracking. These documents are distinct since they apply to different
airplane models.
    Bombardier also issued the following service information:
     Bombardier Service Bulletin 700-53-052, Basic Issue, dated
October 1, 2018.
     Bombardier Service Bulletin 700-53-6010, Basic Issue,
dated October 1, 2018.
     Bombardier Service Bulletin 700-1A11-53-027, Basic Issue,
dated October 1, 2018.
     Bombardier Service Bulletin 700-53-5011, Basic Issue,
dated October 1, 2018.
    This service information describes procedures for modification of
the rudder quadrant box assembly. The modification includes surface and
bolt-hole eddy current inspections for cracking of the left-hand (LH)
channel; a detailed visual inspection for cracking of the forward and
aft half ribs and bottom and top skins; replacement of the rudder
quadrant box half ribs, air systems support fitting, and LH channel;
and installation of new rudder quadrant box back-up fittings. These
documents are distinct since they apply to different airplane models.
    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.

Costs of Compliance

    The FAA estimates that this AD affects 123 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:

                                                          Estimated Costs for Required Actions
--------------------------------------------------------------------------------------------------------------------------------------------------------
               Labor cost                  Parts cost                   Cost per  product                             Cost on U.S. operators
--------------------------------------------------------------------------------------------------------------------------------------------------------
2 work-hours x $85 per hour = $170 per               $0  $170 per inspection cycle......................  $20,910 per inspection cycle.
 inspection cycle.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The FAA estimates the following costs to do any necessary on-
condition action that would be required based on the results of any
required actions. The FAA has no way of determining the number of
aircraft that might need this on-condition action:

                 Estimated Costs of On-Condition Action
------------------------------------------------------------------------
                                                             Cost per
              Labor cost                   Parts cost        product
------------------------------------------------------------------------
46 work-hours x $85 per hour = $3,910.            $355           $4,265
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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.
    The FAA 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

    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) Will not affect intrastate aviation in Alaska, 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.

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):

2020-05-27 Bombardier, Inc.: Amendment 39-19877; Docket No. FAA-
2019-0876; Product Identifier 2019-NM-070-AD.

(a) Effective Date

    This AD is effective May 7, 2020.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Bombardier, Inc., Model BD-700-1A10 and BD-
700-1A11 airplanes, certificated in any category, serial numbers
9001 through 9844 inclusive, and 9998.

(d) Subject

    Air Transport Association (ATA) of America Code 53, Fuselage.

(e) Reason

    This AD was prompted by a report that cracking was discovered in
a channel within a structural support member for the rudder
quadrant, rudder feel unit assembly, and environmental control
system due to fatigue. The FAA is issuing this AD to address
cracking in the rudder quadrant support structure, which can lead to
progressive deterioration in the performance of the systems it
supports, and could eventually lead to uncommanded rudder movement
and bleed air leakage.

(f) Compliance

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

(g) Initial and Repetitive Inspections

    For airplanes that have accumulated fewer than 2,900 total
flight cycles as of the effective date of this AD, and that have not
been modified as specified in paragraph (i) of this AD: At the
applicable time specified in paragraph (g)(1) or (2) of this AD, do
a detailed visual inspection for cracking of the rudder quadrant box
assembly, in accordance with paragraph 2.B. of the Accomplishment
Instructions of the applicable service bulletin specified in figure
1 to paragraph (g) of this AD. Repeat the inspection thereafter at
intervals not to exceed 1,000 flight cycles.
    (1) For airplanes that have accumulated fewer than 2,000 total
flight cycles as of the effective date of this AD: Inspect within
1,000 flight cycles after the effective date of this AD.
    (2) For airplanes that have accumulated 2,000 total flight
cycles or more, but fewer than 2,900 total flight cycles, as of the
effective date of this AD: Inspect within 100 flight cycles after
the effective date of this AD.
[GRAPHIC] [TIFF OMITTED] TR02AP20.003

(h) Corrective Actions for Inspection Findings

    If any cracking is found during any inspection specified in
paragraph (g) of this AD, do the actions specified in paragraph (i)
of this AD at the applicable time specified in paragraphs (h)(1)
through (4) of this AD.
    (1) If any crack of 1.20 inch (30.48 mm) or longer is found on
the forward (FWD) upper half rib: Do the actions within 100 flight
cycles after discovery of the crack.
    (2) If any crack of 0.40 inch (10.16 mm) or longer is found on
the AFT lower half rib, do the actions within 100 flight cycles
after discovery of the crack.
    (3) If any crack is found on the left-hand (LH) channel that has
grown from the air system's support fitting aft fastener hole to the
adjacent air systems support fitting fastener hole (which is 0.625
inch (15.88 mm) from hole edge to hole edge) or longer, do the
actions before further flight.

    (4) If any crack is found on the LH channel that is less than
0.625 inch (15.88 mm) from hole edge to hole edge (which is the
distance from the air system's support fitting aft fastener hole to
the adjacent air system's support fitting fastener hole), do the
actions within 50 flight cycles after discovery of the crack.

(i) Modification of the Rudder Quadrant Box Assembly

    At the applicable time specified in paragraph (i)(1) or (2) of
this AD, except as required by paragraph (h) of this AD: Modify the
rudder quadrant box assembly. The modification includes surface and
bolt-hole eddy current inspections for cracking of the left-hand
channel; a detailed visual inspection for cracking of the forward
and aft half ribs and bottom and top skins; applicable corrective
actions; replacement of the rudder quadrant box half ribs, air
systems support fitting, and LH channel; and installation of new
rudder quadrant box back-up fittings. Do the modification and
associated actions in accordance with paragraph 2.B., 2.C., and
2.D., of the Accomplishment Instructions of the applicable service
bulletin specified in figure 2 to paragraph (i) of this AD; except,
where the applicable service bulletin specifies to contact
Bombardier for appropriate action, corrective actions must be done
before further flight in accordance with the procedures specified in
paragraph (l)(2) of this AD.
    (1) For airplanes that have accumulated 2,900 total flight
cycles or fewer as of the effective date of this AD, do the required
actions before the accumulation of 3,000 total flight cycles, or
within 60 months after the effective date of this AD, whichever
occurs first.
    (2) For airplanes that have accumulated more than 2,900 total
flight cycles as of the effective date of this AD, do the required
actions within 100 flight cycles or 12 months, whichever occurs
first, after the effective date of this AD.
[GRAPHIC] [TIFF OMITTED] TR02AP20.004

(j) Alternative Modification

    Airplanes that have been modified as specified by any
modification identified in paragraphs (j)(1) through (4) of this AD
(which are not required by this AD), meet the requirements specified
in paragraph (i) of this AD.
    (1) Bombardier Repair Modification R700T400669, Revision C,
dated January 19, 2018, or Bombardier Repair Modification
R700T400669, Revision G, dated May 30, 2018.
    (2) Bombardier In-Service Modification IS700-53-0024, Revision
A, dated July 24, 2018.
    (3) Bombardier Service Request for Product Support Action
(SRPSA) 000220372.
    (4) Bombardier Service Request for Product Support Action
(SRPSA) 000271526.

(k) Terminating Action for Repetitive Inspections

    Accomplishing the actions in paragraph (i) or (j) of this AD
terminates all of the requirements in paragraph (g) of this AD.

(l) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO 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 ATTN: Program Manager, Continuing Operational
Safety, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. 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.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, New York ACO
Branch, FAA; or Transport Canada Civil Aviation (TCCA); or
Bombardier, Inc.'s TCCA Design Approval Organization (DAO). If
approved by the DAO, the approval must include the DAO-authorized
signature.

(m) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) Canadian AD CF-2019-11, dated March 22, 2019, for related
information. This MCAI may be found in the AD docket on the internet
at https://www.regulations.gov by searching for and locating Docket
No. FAA-2019-0876.
    (2) For more information about this AD, contact Andrea Jimenez,
Aerospace Engineer, Airframe and Mechanical Systems Section, FAA,
New York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY
11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
(n) 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 this AD specifies otherwise.

    (i) Bombardier Service Bulletin 700-53-052, Basic Issue, dated
October 1, 2018.
    (ii) Bombardier Service Bulletin 700-53-054, Basic Issue, dated
October 1, 2018.
    (iii) Bombardier Service Bulletin 700-53-5011, Basic Issue,
dated October 1, 2018
    (iv) Bombardier Service Bulletin 700-53-5013, Basic Issue, dated
October 1, 2018.
    (v) Bombardier Service Bulletin 700-53-6010, Basic Issue, dated
October 1, 2018.
    (vi) Bombardier Service Bulletin 700-53-6012, Basic Issue, dated
October 1, 2018.
    (vii) Bombardier Service Bulletin 700-1A11-53-027, Basic Issue,
dated October 1, 2018.
    (viii) Bombardier Service Bulletin 700-1A11-53-029, Basic Issue,
dated October 1, 2018.
    (3) For service information identified in this AD, contact
Bombardier, Inc., 400 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 1Y9, Canada; telephone<PHONE_NUMBER>; fax 514-855-
7401; email<EMAIL_ADDRESS>internet https://www.bombardier.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call
206-231-3195.
    (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, email<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on March 10, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-06786 Filed 4-1-20; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: November 16, 2006 (Volume 71, Number 221)]
[Notices]
[Page 66772]
[DOCID:fr16no06-65]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of Application for Amendment of License and Soliciting
Comments, Motions To Intervene, and Protests

November 8, 2006.
    Take notice that the following application has been filed with the
Commission and is available for public inspection:
    a. Application Type: Amendment of License.
    b. Project No: 12379-029.
    c. Date Filed: September 7, 2006.
    d. Applicant: Alaska Electric Light and Power Company.
    e. Name of Project: Lake Dorothy Project.
    f. Location: The project is located on the Dorothy Creek, near
Juneau, Alaska.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791(a)-825(r).
    h. Applicant Contact: Corry V. Hildebrand, Lake Dorothy Hydro Inc.,
5601 Tonsgard Court, Juneau, AK 99801-7201.
    i. FERC Contact: Any questions on this notice should be addressed
to: Anumzziatta Purchiaroni at<PHONE_NUMBER>, or e-mail address:
<EMAIL_ADDRESS>
    j. Deadline for filing comments and or motions: November 24, 2006.
    k. Description of Request: The licensee is requesting the
Commission's approval to excavate a 150-feet long starter tunnel
section prior construction of the powerhouse. The licensee proposes to
construct the starter tunnel as part of the contract for the Lake
Dorothy tap tunnel currently under construction. The purpose of the
tunnel is to minimize disturbance or damage to the powerhouse and
adjacent facilities from blasting activities associated with the tunnel
excavation.
    l. Locations of the Application: A copy of the application is
available for inspection and reproduction at the Commission's Public
Reference Room, located at 888 First Street, NE., Room 2A, Washington,
DC 20426, or by calling<PHONE_NUMBER>. Information about this filing
may also be viewed on the Commission's Web site at http://www.ferc.gov

using the ``eLibrary'' link. Enter the docket number excluding the last
three digits in the docket number field to access the document. You may
also register online at http://www.ferc.gov/docs-filing/esubscription.asp
 to be notified via e-mail of new filings and

issuances related to this or other pending projects. For assistance,
call 1-866-208-3676 or e-mail<EMAIL_ADDRESS>for TTY, call
(202) 502-8659. A copy is also available for inspection and
reproduction at the address in item (h) above.
    m. Individuals desiring to be included on the Commission's mailing
list should so indicate by writing to the Secretary of the Commission.
    n. Comments, Protests, or Motions to Intervene: Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210, .211,
.214. In determining the appropriate action to take, the Commission
will consider all protests or other comments filed, but only those who
file a motion to intervene in accordance with the Commission's Rules
may become a party to the proceeding. Any comments, protests, or
motions to intervene must be received on or before the specified
comment date for the particular application.
    o. Filing and Service of Responsive Documents: Any filings must
bear in all capital letters the title ``COMMENTS'', ``RECOMMENDATIONS
FOR TERMS AND CONDITIONS'', ``PROTEST'', OR ``MOTION TO INTERVENE'', as
applicable, and the Project Number of the particular application to
which the filing refers. All documents (original and eight copies)
should be filed with: Magalie R. Salas, Secretary, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington DC 20426. A
copy of any motion to intervene must also be served upon each
representative of the Applicant specified in the particular
application.
    p. Agency Comments: Federal, State, and local agencies are invited
to file comments on the described application. A copy of the
application may be obtained by agencies directly from the Applicant. If
an agency does not file comments within the time specified for filing
comments, it will be presumed to have no comments. One copy of an
agency's comments must also be sent to the Applicant's representatives.
    q. Comments, protests and interventions may be filed electronically
via the Internet in lieu of paper. See, 18 CFR 385.2001(a)(1)(iii) and
the instructions on the Commission's Web site at http://www.ferc.gov

under the ``e-Filing'' link.

Magalie R. Salas,
Secretary.
[FR Doc. E6-19329 Filed 11-15-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 81, Number 164 (Wednesday, August 24, 2016)]
[Notices]
[Pages 57977-57981]
[FR Doc No: 2016-20212]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78618; File No. SR-BOX-2016-41]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility

August 18, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on August 15, 2016, BOX Options Exchange LLC (the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Exchange filed the
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule to
make a number of changes to the fees and credits for PIP and COPIP
Transactions on the BOX Market LLC (``BOX'') options facility. The text
of the proposed rule change is available from the principal office of
the Exchange, at the Commission's Public Reference Room and also on the
Exchange's Internet Web site at http://boxexchange.com.

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 the Fee Schedule for trading on BOX
to make a number of changes to the fees and credits for PIP and COPIP
Transactions.\5\ Overall, the Exchange proposes to amend the Fee
Schedule to differentiate between those PIP and COPIP transactions
where the PIP or COPIP Order is from the account of a Public Customer;
and those PIP and COPIP transactions where a PIP or COPIP Order is from
the account of a Professional Customer, Broker Dealer or Market Maker
(``Non-Public Customer''). While most PIP and COPIP Orders are from the
account of a Public Customer, any type of BOX Participant may submit a
PIP or COPIP Order with a matching contra order equal to the full size
of the PIP or COPIP Order to the PIP and COPIP auction mechanisms.
Therefore, the Exchange believes this distinction is appropriate, as
the current fees, rebates, and credits for PIP and COPIP transactions
within the BOX Fee Schedule are meant to incentivize Public Customer
order flow to the PIP and COPIP auctions. The Exchange believes that
similar incentives are not necessary for Non-Public Customer PIP and
COPIP order flow and the proposed fees and credits below are meant to
establish separate fees and credits for Non-Public Customer PIP and
COPIP Order flow which, taken as a whole, do not offer the same level
of inducement. Further, the Exchange notes that the distinction between
auction transactions from a Public Customer versus a Non-Public
Customer is already in place on another options exchange.\6\
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    \5\ Transactions executed through Price Improvement Period
(``PIP'') and the Complex Order Price Improvement Period (``COPIP'')
auction mechanisms. All COPIP transactions will be charged per
contract per leg.
    \6\ See Miami International Securities Exchange LLC (``MIAX'')
Fee Schedule Section I(A)(v) available at https://www.miaxoptions.com/content/fees.
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Exchange Fees
PIP and COPIP Orders
    The Exchange proposes to adjust certain fees for PIP and COPIP
Transactions. Currently, Professional Customers, Broker Dealers and
Market Makers are assessed a fee of $0.15 for PIP and COPIP Orders \7\
and Public Customers are assessed no fee. The Exchange proposes to
reduce the fees assessed to Professional Customers, Broker Dealers and
Market Makers for PIP and COPIP Orders in Penny and Non-Penny Pilot
Classes to $0.05.
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    \7\ A PIP Order or COPIP Order is a Customer Order (an agency
order for the account of either a customer or a broker-dealer)
designated for the PIP or COPIP, respectively.
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Primary Improvement Order
    Under the Primary Improvement Order \8\ tiered fee structure, the
Exchange assesses a per contract execution fee to all Primary
Improvement Order executions initiated by the particular Initiating
Participant. Percentage thresholds are calculated on a monthly basis by
totaling the Initiating Participant's Primary Improvement Order volume
submitted to BOX, relative to the total national Customer volume in
multiply-listed options classes.
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    \8\ A Primary Improvement Order is the matching contra order
submitted to the PIP or COPIP on the opposite side of the PIP or
COPIP order.
---------------------------------------------------------------------------

    The Exchange proposes to first add language that will specify that
the tiered fee schedule for initiating participants will only apply to
Primary Improvement Order executions where the corresponding PIP or
COPIP Order is from the account of a Public Customer. The Exchange then
proposes to introduce a flat per contract fee of $0.05 for all Primary
Improvement Orders where the corresponding PIP or COPIP Order is from
the account of a Non-Public Customer.
BOX Volume Rebate (``BVR'')
    The Exchange then proposes to amend Section I.B.2 of the Fee
Schedule (BVR). Under the current BVR, the Exchange offers a tiered per
contract rebate for all PIP Orders and COPIP orders of 100 contracts
and under. Percentage thresholds are calculated on a monthly basis by
totaling the Participant's PIP and COPIP volume submitted to BOX,
relative to the total national Customer volume in multiply-listed
options classes. The Exchange proposes to add language that will
specify that only Public Customer PIP and COPIP Orders are eligible for
the BVR.
Liquidity Fees and Credits
    The Exchange then proposes to amend Section II.A. of the BOX Fee
Schedule, Liquidity Fees and Credits for PIP and COPIP transactions.
Specifically, the Exchange proposes to amend Section II.A. to
differentiate between PIP and COPIP transactions where the PIP and
COPIP Orders are from the accounts of Public Customers and PIP and
COPIP transactions where the PIP and COPIP Orders are from the accounts
of Non-Public Customers.
    First, the Exchange proposes to specify that the current liquidity
fees and credits will only apply to PIP and COPIP transactions where
the PIP and COPIP Order is from the account of a Public Customer. The
liquidity fees and credits for these PIP and COPIP Orders, the Primary
Improvement Order and any corresponding Improvement Orders remain
unchanged and will be as follows:

------------------------------------------------------------------------
                                    Fee for adding        Credit for
                                       liquidity      removing liquidity
------------------------------------------------------------------------
Non-Penny Pilot Classes.........               $0.77             ($0.77)
Penny Pilot Classes.............               $0.38             ($0.38)
------------------------------------------------------------------------

    The Exchange then proposes to establish a new section for the
Liquidity Fees and Credits of PIP and COPIP transactions where the PIP
and COPIP Order is from the account of a Non-Public Customer. First,
the Exchange proposes to specify that PIP or COPIP Orders from the
account of a Non-Public Customer are assessed the ``removal'' credit
only if the PIP or COPIP Order does not trade with its contra order
(the Primary Improvement Order). The

Exchange also proposes to specify that only responses to PIP and COPIP
Orders from the account of a Non-Public Customer that are executed in
these mechanisms, also known as Improvement Orders, shall continue to
be charged the ``add'' fee. Specifically, a PIP or COPIP Order from the
account of a Non-Public Customer that does not trade with its Primary
Improvement Order, and the corresponding Improvement Orders will
subject to the fees and credits in the following table:

------------------------------------------------------------------------
                                    Fee for adding        Credit for
                                       liquidity      removing liquidity
------------------------------------------------------------------------
Non-Penny Pilot Classes.........               $0.77             ($0.77)
Penny Pilot Classes.............               $0.38             ($0.38)
------------------------------------------------------------------------

    For example, if a Broker Dealer submits a PIP Order for the account
of a Non-Public Customer to buy 100 contracts in the PIP and there are
no responders, the PIP Order would execute against the matching Primary
Improvement Order to sell 100 contracts and neither Order would be
assessed a liquidity fee or credit. If, instead, the same PIP Order
receives an Improvement Order response to sell 75 contracts, at the end
of the auction the PIP Order would now execute against the Improvement
Order for 75 contracts and the Primary Improvement Order for 25
contracts, and liquidity fees and credits would only be assessed on the
75 contracts which executed against the Improvement Order.
Specifically, the 75 contracts from the PIP Order will receive the
removal credit and the 75 contracts from the Improvement Order will be
charged the add fee.
    Lastly, the Exchange also proposes to update the footnote numbering
and make other non-substantive technical changes within the BOX Fee
Schedule.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act, in general, and Section
6(b)(4) and 6(b)(5)of the Act,\9\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among BOX Participants and other persons using its facilities
and does not unfairly discriminate between customers, issuers, brokers
or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

Exchange Fees
PIP and COPIP Transactions
    The Exchange believes that reducing the fees assessed to
Professional Customers, Broker Dealers and Market Makers for PIP and
COPIP Orders in Penny and Non-Penny Pilot Classes is reasonable,
equitable, and not unfairly discriminatory. In particular, the Exchange
believes that reducing these fees will encourage auction order flow to
the Exchange, which will benefit all market participants on the
Exchange. BOX believes that the proposed fee reductions from $0.15 to
$0.05 are reasonable and in line with similar fees on other
exchanges.\10\ Further, the Exchange believes the $0.05 fee is
equitable and not unfairly discriminatory, as it applies equally to all
Market Maker, Professional Customers and Broker Dealers submitting PIP
and COPIP Orders to the PIP and COPIP auction mechanisms. The Exchange
believes it is equitable and not unfairly discriminatory to charge
these Non-Public Customers more for their PIP and COPIP Orders in Penny
and Non-Penny Pilot Classes than Public Customers. The practice of
incentivizing increased Public Customer order flow is common in the
options markets.
---------------------------------------------------------------------------

    \10\ See MIAX Fee Schedule Section I(A)(v); Phlx Pricing
Schedule Section IV and ISE Fee Schedule Section I. Comparable fees
at these exchanges range from $0.05 to $0.30.
---------------------------------------------------------------------------

Primary Improvement Order
    The Exchange believes that adding language to specify that the
tiered fee schedule for initiating participants will only apply to
Primary Improvement Order executions where the corresponding PIP or
COPIP Order is from the account of a Public Customer, as well as
introducing a flat per contract fee of $0.05 for all Primary
Improvement Orders where the corresponding PIP or COPIP Order is from
the account of a Non-Public Customer is reasonable, equitable and not
unfairly discriminatory. The Exchange also believes the proposed $0.05
fee for Primary Improvement Order executions where the corresponding
PIP or COPIP Order is from the account of a Non-Public Customer is
reasonable, as it is within the range of fees currently assessed on all
Primary Improvement Orders on BOX.\11\ The Exchange believes that this
distinction is reasonable and competitive, as it is made on another
options exchange.\12\ Finally, the Exchange believes that
differentiating between Public Customer and Non-Public Customer PIP and
COPIP Orders, and their corresponding Primary Improvement Orders is
equitable and not unfairly discriminatory. As stated above, the current
fees, credit and rebates for PIP and COPIP transactions are meant to
encourage Public Customer order flow to the PIP and COPIP auction
mechanisms. Specifically, the tiered fee schedule for initiating
participants encourages Order Flow Providers to submit Public Customer
orders to the PIP or COPIP to gain the benefit of a lower fee. The
Exchange believes that this incentive is not necessary for Non-Public
Customer PIP and COPIP order flow and that the proposed flat $0.05 fee
is appropriate. Specifically, when taken as a whole, the proposed Non-
Public Customer PIP and COPIP transactions fees will result in the PIP
or COPIP Order always being assessed a $0.05 fee with no rebate
potential,\13\ and the corresponding Primary Improvement Order being
assessed a flat $0.05 fee. In comparison, the Initiating Participant's
Primary Improvement Order for a Public Customer PIP or COPIP Order
could potentially be assessed a fee as low as $0.02,\14\ while the
corresponding PIP or COPIP Order would be assessed no fee and could
obtain a rebate of up $0.12 (PIP Orders) or $0.06 (COPIP Orders)
depending on the Participant's volume.
---------------------------------------------------------------------------

    \11\ For Primary Improvement Order executions, contract fees
range from $0.25 to $0.02.
    \12\ PHLX also distinguishes between a PIXL Order from the
account of a Non-Customer as compared to a PIXL Order from the
account of a Customer. See NASDAQ PHLX LLC (``Phlx'') Fee Schedule
Section V. When a PIXL Order is contra to a PIXL Auction Responder,
a Customer PIXL Order will be assessed $0.00 per contract where a
Non-Customer PIXL Order will be assessed $0.30 per contract in Penny
Pilot Options or $0.38 in Non-Penny Pilot Options.
    \13\ These transactions will be exempt from the BVR.
    \14\ The Exchange notes that a majority of Primary Improvement
Order executions are assessed Tier 4 and 5 fees within the tiered
fee schedule for Initiating Participants.
---------------------------------------------------------------------------

BOX Volume Rebate
    The Exchange believes the proposed changes to the BVR are
reasonable, equitable and not unfairly discriminatory. The BVR was
adopted to attract Public Customer order flow to the Exchange by
offering these

Participants incentives to submit their PIP and COPIP Orders to the
Exchange.\15\ As such, the Exchange believes it is reasonable and
appropriate to exempt Non-Public Customer PIP and COPIP Orders from the
BVR. Further, the Exchange believes this exemption is equitable and not
unfairly discriminatory as it will apply to all Non-Public Customers
uniformly. As stated above, providing specific incentives for Public
Customer volume is common both within the options industry and
elsewhere in the BOX Fee Schedule.
---------------------------------------------------------------------------

    \15\ See Securities Exchange Release No. 73547 (November 6,
2014), 79 FR 67520 (November 13, 2014) (SR-BOX-2014-25).
---------------------------------------------------------------------------

Liquidity Fees and Credits
    The Exchange believes amending the Liquidity Fees and Credits for
PIP and COPIP transactions to differentiate between PIP and COPIP
transactions where the PIP or COPIP Order is from the account of a
Public Customer, and the PIP or COPIP Order is from the account of a
Non-Public Customer is reasonable, equitable and not unfairly
discriminatory. As stated above, the current liquidity fees and credits
for PIP and COPIP transactions are focused on incentivizing Public
Customer order flow to the PIP and COPIP auctions. Therefore, the
Exchange believes it is equitable and not unfairly discriminatory to
establish different fees and credits for Non-Public Customer order flow
to these auction mechanisms. The Exchange notes that the liquidity fees
and credits for PIP and COPIP transactions where the PIP and COPIP
Order is from the account of a Public Customer remain unchanged.
    Accordingly, the Exchange believes the proposed liquidity fees and
credits for PIP and COPIP transactions where the PIP or COPIP Order are
from the account of a Non-Public Customer are reasonable, equitable and
not unfairly discriminatory as they are identical to the current
liquidity fees and credits assessed for PIP and COPIP transactions
where the PIP or COPIP Order is from the account of a Public Customer.
    The Exchange also believes it is reasonable, equitable and not
unfairly discriminatory to only apply the liquidity fees and credits to
the portion of the PIP or COPIP Order from the account of a Non-Public
Customer that does not trade with its contra order, and the Improvement
Order responses. Liquidity fees and credits on BOX do not directly
result in revenue to BOX, but are meant to incentivize Participants to
attract order flow. Because of the value of Public Customer order flow,
the Exchange believes these incentives are appropriate even if the
Public Customer PIP or COPIP Order is fully internalized and trades
only against its matching Primary Improvement Order. However, as stated
above, the Exchange believes that the same level of incentives is not
necessary for Non-Public Customer PIP or COPIP order flow. Therefore,
the Exchange believes it reasonable to only provide these incentives to
the portion of the Non-Public Customer PIP or COPIP Orders where
liquidity is being added in the form of Improvement Order responses.
Further, the Exchanges notes that the liquidity fees and credits for
transactions within the Facilitation and Solicitation auction mechanism
(Section II.B. of the BOX Fee Schedule) are assessed in a similar
manner, and that the distinction is also made within the price
improvement mechanism fees and rebates on another exchange in the
options industry.\16\
---------------------------------------------------------------------------

    \16\ Under Section I of the ISE Fee Schedule, the initiator
receives a $0.35 ``break-up'' rebate only for contracts that are
submitted to the PIM that do not trade with their contra order. The
responder fee for these Orders is only applied to any contracts for
which the rebate is provided.
---------------------------------------------------------------------------

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

    The Exchange 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 adjustments to the Non-
Public Customer PIP and COPIP Transactions fees will not impose a
burden on competition among various Exchange Participants. Rather, BOX
believes that the changes will result in the Participants being charged
appropriately for their Non-Public Customer PIP and COPIP Transactions
and is designed to enhance competition in Auction transactions on BOX.
Submitting an order is entirely voluntary and Participants can
determine which type of order they wish to submit, if any, to the
Exchange.
    The Exchange also believes that amending the proposed liquidity
fees and credits for Non-Public Customer PIP and COPIP Transactions
will not impose a burden on competition among various Exchange
Participants. The Exchange believes that the proposed changes will
result these Participants being charged or credited appropriately for
these transactions.
    Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing exchanges. In such an environment, the Exchange must
continually review, and consider adjusting, its fees and credits to
remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed rule change reflects
this competitive environment.

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

    No written comments were either solicited or received.

III. 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 Exchange Act \17\ and Rule 19b-4(f)(2)
thereunder,\18\ because it establishes or changes a due, or fee.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \18\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further 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.

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-BOX-2016-41 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-BOX-2016-41. This file
number should be included on the subject line if email is used. To help
the Commission process and review your

comments more efficiently, please use only one method. The Commission
will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent
amendments, all written statements with respect to the proposed rule
change that are filed with the Commission, and all written
communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Room, 100 F Street NE., Washington, DC 20549 on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-BOX-2016-41, and should be submitted on or before
September 14, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-20212 Filed 8-23-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 245 (Monday, December 22, 2014)]
[Notices]
[Page 76321]
[FR Doc No: 2014-29879]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Peninsula Power, LLC; Docket No. ER15-486-000]

Supplemental Notice That Initial Market-Based Rate Filing
Includes Request for Blanket Section 204 Authorization

    This is a supplemental notice in the above-referenced proceeding,
of Peninsula Power, LLC's application for market-based rate authority,
with an accompanying rate schedule, 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 January 5, 2015.
    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(s) are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site 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: December 15, 2014.
Kimberly D. Bose,
Secretary.
[FR Doc. 2014-29879 Filed 12-19-14; 8:45 am]
BILLING CODE 6717-01-P