[Federal Register Volume 80, Number 225 (Monday, November 23, 2015)]
[Notices]
[Pages 73016-73019]
[FR Doc No: 2015-29705]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76450; File No. SR-NASDAQ-2015-137]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Market Quality Incentive Program and Certain Other Fees and
Credits for Execution and Routing

November 17, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 3, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    Nasdaq is proposing to amend Nasdaq Rule 7014, concerning the
Exchange's Market Quality Incentive Programs, and Nasdaq Rule 7018,
governing fees and credits assessed for execution and routing of
securities priced at $1 or more.
    The text of the proposed rule change is available at
nasdaq.cchwallstreet.com at Nasdaq principal office [sic], and at the
Commission's Public Reference Room.

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

    In its filing with the Commission, Nasdaq 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 those 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 parts of such
statements.

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

1. Purpose
    Nasdaq is proposing to amend Rule 7014 to add new tiers to the Lead
Market Maker (``LMM'') Program and to modify credits provided under
Rule 7018(a).
Rule 7014
    The Exchange is proposing to modify the benefits provided by the
LMM Program under Rule 7014. Under the LMM Program, a LMM may receive a
credit of $0.004 per share executed (or $0, in the case of executions
against Quotes/Orders in the Nasdaq Market Center at less than $1.00
per share) if it provides displayed liquidity through the Nasdaq Market
Center. The credit applies to transactions in a Qualified Security \3\
and is provided in lieu of credits under Rules 7018 and 7014. A LMM is
a registered Nasdaq market maker for a Qualified Security that has
committed to maintain minimum performance standards. A LMM is selected
by Nasdaq based on factors including, but not limited to, experience
with making markets in exchange-traded funds and index-linked
securities, adequacy of capital, willingness to promote Nasdaq as a
marketplace, issuer preference, operational capacity, support
personnel, and history of adherence to Nasdaq rules and securities
laws. Nasdaq may limit the number of LMMs in a security, or modify a
previously established limit, upon prior written notice to members.
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    \3\ A Qualified Security: (1) Is an exchange-traded fund or
index-linked security listed on Nasdaq pursuant to Nasdaq Rules
5705, 5710, or 5720; and (2) has at least one Lead Market Maker. See
Rule 7014(f)(1).
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    Nasdaq sets minimum performance criteria to qualify as a LMM. These
minimum performance standards are determined by Nasdaq from time to
time and may vary depending on the price, liquidity, and volatility of
the Qualified Security in which the LMM is registered. Nasdaq may apply
performance measurements that include one or more of the following: (A)
Percent of time at the national best bid (best offer) (``NBBO''); (B)
percent of executions better than the NBBO; (C) average displayed size;
and (D) average quoted spread (collectively, ``LMM Criteria''). The LMM
Criteria will be established upon written notice to members. Currently,
the established LMM Criteria requires a LMM to be at the NBBO more than
15% of the time.\4\
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    \4\ See Equity Trader Alert 2015-109 (http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2015-109).
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    The Exchange is proposing to provide higher rebates to LMMs the
greater percentage of the time they are at the NBBO. Specifically, the
Exchange is creating three rebate tiers. The first tier will provide a
LMM a rebate of $0.004 per share executed for displayed liquidity (for
executions above $1) if the LMM is at the NBBO more than 15% of the
time and up to 20% of the time. The second tier will provide a LMM a
rebate of $0.0043 per share executed for displayed liquidity (for
executions above $1) if the LMM is at the NBBO more than 20% of the
time and up to 50% of the time. The third tier will provide a LMM a
rebate of $0.0046 per share executed for displayed liquidity (for
executions above $1) if the LMM is at the NBBO more than 50% of the
time. As is the case currently under the LMM Program, a LMM will not
receive a rebate for executions less than $1 per share.
    Under each of the new tiers, the Exchange is also providing a new
maximum fee for participation in the opening and closing crosses as
additional incentive to LMMs. Under Rule 7018, a Participant,\5\
including a LMM, is assessed a per share executed charge of $0.0015 to
$0.0008 for participation in the Opening and Closing Crosses.\6\ Under
the LMM Program, the Exchange is proposing to cap the fee a LMM is
charged if they qualify for one of the three new tiers. Specifically,
Nasdaq will provide a maximum Opening and Closing Cross fee of $0.0010
per share executed to a LMM that qualifies under the first tier

under new Rule 7014(f)(4), and a maximum opening and Closing Cross fee
of $0.0000 per share executed to a LMM that qualifies under the second
or third tier under new Rule 7014(f)(4). A LMM that qualifies for a
maximum charge under Rule 7014(f)(4) would not be precluded from taking
advantage of a lower charge provided under Rules 7018(d) or (e).\7\
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    \5\ As defined by Rule 4701(c).
    \6\ See Rule 7018(d) and (e).
    \7\ For example, if a LMM was eligible to receive a maximum
charge of $0.0010 per share executed under the first tier of Rule
7014(f)(4), but also qualified for a charge of $0.0008 per share
executed in the closing cross under Tier A of Rule 7018(d)(2), the
Participant would receive the lower charge under Rule 7018(d)(2).
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    Nasdaq is also deleting rule text that concerns the performance
standards applied under Rule 7014(f). The Exchange notes that it is
applying the current established LMM criteria \8\ under the first tier
of Rule 7014(f)(4), and expanding the use of the criteria under the
second and third tiers. Nasdaq may apply the other performance
measurements noted currently under Rule 7014(f)(2) in the future and
will amend the rule text to reflect the new criteria based on those
performance measurements. Nasdaq is also making clarifying changes to
the rule under Rule 7014(f)(3).
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    \8\ Supra note 4.
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Rule 7018(a)
    Rule 7018(a) concerns fees and credits provided for the use of the
order execution and routing services of the Nasdaq Market Center by
members for all securities priced at $1 or more that it trades. Under
the proposed changes to the rule, Nasdaq is proposing to eliminate
certain credit tiers, add new credit tiers and modify existing credit
tier [sic].
    First, Nasdaq is proposing to delete four credit tiers that apply
to securities of each of the three Tape securities. Specifically,
Nasdaq is proposing to:
     Eliminate the $0.00305 per share executed credit provided
to a member with (i) shares of liquidity provided in all securities
through one of its Nasdaq Market Center MPIDs that represent 1.60% or
more of Consolidated Volume during the month, or (ii) shares of
liquidity provided in all securities through one or more of its Nasdaq
Market Center MPIDs that represent 1.60% or more of Consolidated Volume
during the month, and shares of liquidity provided in all securities
through one of its Nasdaq Market Center MPIDs that represent 0.75% or
more of Consolidated Volume during the month.
     Eliminate the $0.0030 per share executed credit provided
to a member with (i) shares of liquidity provided in all securities
through one of its Nasdaq Market Center MPIDs that represent 1.20% or
more of Consolidated Volume during the month, or (ii) shares of
liquidity provided in all securities through one or more of its Nasdaq
Market Center MPIDs that represent 1.20% or more of Consolidated Volume
during the month, and shares of liquidity provided in all securities
through one of its Nasdaq Market Center MPIDs that represent 0.75% or
more of Consolidated Volume during the month.
     Eliminate the $0.00295 per share executed credit provided
to a member with shares of liquidity provided in all securities through
one of its Nasdaq Market Center MPIDs that represent more than 0.90% of
Consolidated Volume during the month.
     Eliminate the $0.00295 per share executed credit provided
to a member (i) that is a registered market maker through one of its
Nasdaq Market Center MPIDs in at least 7,000 securities, (ii) with
shares of liquidity provided in all securities through one of its
Nasdaq Market Center MPIDs that represent more than 0.75% of
Consolidated Volume during the month, and (iii) with shares of
liquidity provided in all securities through one or more of its Nasdaq
Market Center MPIDs that represent more than 0.90% of Consolidated
Volume during the month.
    Second, Nasdaq is proposing to add two new credits that apply to
securities of each of the three Tape securities. Specifically, Nasdaq
is proposing to:
     Add a new credit of $0.00305 per share executed to a
member with shares of liquidity provided in all securities through one
or more of its Nasdaq Market Center MPIDs that represent more than
1.25% of Consolidated Volume during the month.
     Add a new credit of $0.0030 per share executed to a member
with shares of liquidity provided in all securities through one or more
of its Nasdaq Market Center MPIDs that represent more than 0.75% of
Consolidated Volume during the month and member provides a daily
average of at least 5 Million shares of non-displayed liquidity.
    Lastly, the Exchange is proposing to amend the eligibility criteria
for a credit applied to securities of each of the three Tape
securities. Currently, Nasdaq provides a $0.0030 per share executed
credit to a member (i) with shares of liquidity provided in all
securities during the month representing at least 0.20% of Consolidated
Volume during the month, through one or more of its Nasdaq Market
Center MPIDs, and (ii) Adds Customer, Professional, Firm, Non-NOM
Market Maker, NOM Market Maker and/or Broker-Dealer liquidity in Penny
Pilot Options and/or Non- Penny Pilot Options of 0.90% or more of total
industry ADV in the customer clearing range for Equity and ETF option
contracts per day in a month on the Nasdaq Options Market. Nasdaq is
proposing to reduce the level of required Consolidated Volume under
paragraph (i) of the tier from 0.20% to 0.15%. The Exchange is also
limiting the type of liquidity allowed to qualify under paragraph (ii)
of the tier to NOM Market Maker.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\9\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act,\10\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system which Nasdaq operates or controls and is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in 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; and are not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4) and (5).
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    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, for example, the Commission indicated that market forces should
generally determine the price of non-core market data because national
market system regulation ``has been remarkably successful in promoting
market competition in its broader forms that are most important to
investors and listed companies.'' \11\ Likewise, in NetCoalition v.
NYSE Arca, Inc., 615 F.3d 525 (D.C. Cir. 2010), the DC Circuit upheld
the Commission's use of a market-based approach in evaluating the
fairness of market data fees against a challenge claiming that Congress

mandated a cost-based approach.\12\ As the court emphasized, the
Commission ``intended in Regulation NMS that `market forces, rather
than regulatory requirements' play a role in determining the market
data . . . to be made available to investors and at what cost.'' \13\
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    \11\ See Exchange Act Release No. 34-51808 (June 9, 2005)
(``Regulation NMS Adopting Release'').
    \12\ See NetCoalition, 615 F.3d at 534.
    \13\ Id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \14\
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    \14\ NetCoalition I, 615 F.3d at 539 (quoting ArcaBook Order, 73
FR at 74782-74783).
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Rule 7014
    The Exchange believes that the proposed changes to Rule 7014(f) are
reasonable because they provide greater incentives to LMMs to improve
market quality. The proposed changes achieve this by increasing the
rebate provided under the rule. Currently, a LMM only is provided an
incentive to be at the NBBO greater than 15% of the time, but is not
provided any further incentive to exceed the threshold beyond what is
needed to receive the current credit. To provide an incentive to exceed
the current 15% threshold, Nasdaq is adding additional higher credit
tiers based on a greater percentage of time at the NBBO. Nasdaq is also
providing an Opening and Closing Cross incentive under each new tier,
which does not exist today. Nasdaq believes increasing the rebates
available to LMMs and limiting the charge assessed for participation in
the Opening and Closing Crosses will improve market quality for all
market participants because it may provide incentive to LMMs to add
liquidity in the opening and closing processes as well as during
regular market hours. Nasdaq also believes deletion of the language
concerning minimum performance standards under Rule 7014(f)(2) is
reasonable because new Rule 7014(f)(4) now provides the performance
criteria needed to receive the rebates and fees under the program,
which is based on the current criteria in place. If Nasdaq determines
to modify the criteria, it will do so through a rule change in lieu of
written notice to members. Lastly, The [sic] Exchange believes that
providing LMMs a reduced charge in the Opening and Closing Crosses is
equitable and not unfairly discriminatory because, in return for the
reduced charges, LMMs are providing beneficial displayed liquidity to
the benefit of all market participants.
    The Exchange believes that the proposed changes to Rule 7014(f) are
an equitable allocation and is [sic] not unfairly discriminatory
because the Exchange will apply the same fees and provide the same
rebates to all similarly situated members. The rebates and fees under
the amended rule are available to all LMMs that qualify under the new
tiers of the program. The Exchange does not believe that the proposed
changes are unfairly discriminatory because all LMMs have the
opportunity to achieve the level of time at the NBBO if they so choose.
Rule 7018
    The Exchange believes that the proposed changes to Rule 7018(a) are
reasonable because the Exchange must, from time to time, adjust the
level of credits provided, and the criteria required to receive them,
to provide the most efficient allocation of credits in terms of market
improving behavior. In this regard, Nasdaq is limited in the amount of
credits that it can provide to market participants. The Exchange
determined that the eliminated credit tiers no longer provided the most
efficient and effective use of the credits it is able to provide. With
regard to the eliminated $0.00295 credit tiers, Nasdaq observed that no
Participants qualified for the fees recently, rendering them
ineffective at providing incentive. With regard to the eliminated
$0.00305 and $0.0030 credit tiers, Nasdaq does not believe that they
are achieving an adequate level of qualifying beneficial market
activity and is consequently replacing them with two new credit tiers
of the same amount. The Exchange is now requiring a reduced level of
Consolidated Volume to qualify for the new $0.00305 per share executed
credit tier and is not applying the additional criteria of the deleted
$0.00305 credit tier. Consequently, the Exchange believes that the
change may provide a more attainable level of incentive thereby
promoting Participants to provide the liquidity needed to qualify for
the tier. To receive a $0.0030 per share executed credit under the
proposed new tier, a Participant must provide a significantly reduced
level of Consolidated Volume, but must also provide a daily average of
at least 5 million shares of non-displayed liquidity. The Exchange
believes that the criteria of the new tier may make it more attainable
for Participants than the deleted $0.0030 tier. The Exchange believes
that elimination of the $0.00295 credit tiers reasonable [sic] because
no Participants have recently qualified under the tiers, and the
Exchange may accordingly allocate its resources in more effective ways
to encourage market improving activity. Lastly, the changes to
eligibility criteria to receive a $0.0030 per share executed credit is
[sic] reasonable because by reducing the amount of Consolidated Volume
required to receive the credit but limiting the Nasdaq Options Market
based criteria to market making activity, the Exchange believes that it
may provide greater incentive for market makers to improve liquidity on
the Nasdaq Options Market. In addition, because of a limited amount of
credits it can provide, the Exchange chose to continue to provide this
tier to NOM market makers because they actively provide liquidity to
the benefit of all NOM participants. In sum, the Exchange believes that
the changes to Rule 7018(a) are reasonable because the Exchange has
determined that the new tiers may better promote provision of liquidity
and use of non-displayed orders on the Exchange, which improves market
quality for all market participants.
    The Exchange believes that the proposed changes to Rule 7018(a) are
an equitable allocation and are not unfairly discriminatory because the
Exchange will provide the same credits to all similarly situated
members. The credits Nasdaq provides are designed to improve market
quality for all market participants, and Nasdaq allocates its credits
in a manner that it believes are the most likely to achieve that
result. Elimination of the existing credits under the rule is an
equitable allocation and is not unfairly discriminatory because the
credits were ineffective at providing adequate incentive to
Participants to provide market improving order activity. Consequently,
the Exchange is proposing to change the criteria needed to receive
$0.00305 and $0.0030 credits by adopting new tiers it believes will be
more effective. The Exchange believes that elimination of the $0.00295
credit tiers is an equitable allocation and is not unfairly
discriminatory because no participants qualified under the tiers,
therefore their removal will not impact any Participants. With regard
to the changes to eligibility criteria to receive a $0.0030 per share
executed credit, the Exchange believes that they are an equitable
allocation and are not unfairly discriminatory because Nasdaq must be
selective in providing credits to

Participants, and allocates credits to where it believes it will
receive the best result in terms of improvement to market quality. In
this case, Nasdaq is limiting the credit to NOM market makers because
it believes that market quality will be improved the most by market
makers actively providing liquidity and this benefits both Nasdaq and
NOM participants.

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

    Nasdaq does not believe that the proposed rule changes will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.\15\ Nasdaq notes
that it operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
Nasdaq must continually adjust its fees to remain competitive with
other exchanges and with alternative trading systems that have been
exempted from compliance with the statutory standards applicable to
exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices. [sic]
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    \15\ 15 U.S.C. 78f(b)(8).
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    In this instance, the proposed changes to the LMM Program and the
charges assessed and credits available to Participants for execution of
securities in securities of all three Tapes do not impose a burden on
competition because the Exchange's execution services are completely
voluntary and subject to extensive competition both from other
exchanges and from off-exchange venues. The Exchange is modifying a
market improving incentive program and is also adjusting credit tiers
provided Participants in return for market improving activity, in an
effort to make them more effective. Such changes may foster competition
among exchanges and other market venues to provide similar incentives,
which would benefit all market participants. The Exchange must weigh
the costs of offering incentives to market participants against the
desired benefit the Exchange seeks to achieve. To the extent these
incentives are inefficient or at [sic] fail to achieve these goals, the
Exchange may from time to time adjust the level of incentive and/or the
market improving activity required to qualify for the incentive credits
and fees, or adopt an alternative incentive in lieu thereof. Such
changes are reflective of robust competition among exchanges and other
market venues. In sum, if the changes proposed herein are unattractive
to market participants it is likely that Nasdaq will lose market share
as a result. As such, the Exchange does not believe the proposed
changes will place a burden on competition.

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

    Written comments were neither solicited nor received.

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

    The foregoing change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \16\ and Rule 19b-4(f)(2) thereunder.\17\ At
any time within 60 days of the filing of such proposed rule change, the
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings under Section
19(b)(2)(B) of the Act \18\ to determine whether the proposed rule
change should be approved or disapproved.
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    \16\ 15 U.S.C. 78fs(b)(3)(A)(ii).
    \17\ 17 CFR 240.19b-4(f)(2).
    \18\ 15 U.S.C. 78fs(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-NASDAQ-2015-137 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 No. SR-NASDAQ-2015-137. 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 No. SR-NASDAQ-2015-137, and should be
submitted on or before December 14, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(31).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29705 Filed 11-20-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 152 (Wednesday, August 9, 2023)]
[Proposed Rules]
[Pages 53815-53823]
[FR Doc No: 2023-17084]

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

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

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

Federal Register / Vol. 88, No. 152 / Wednesday, August 9, 2023 /
Proposed Rules

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 21

[Docket No. FAA-2023-0623]

Policy for Type Certification of Very Light Airplanes as a
Special Class of Aircraft

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

ACTION: Notice of proposed policy, request for comments.

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SUMMARY: The FAA is requesting comments on its proposed policy for the
type certification of Very Light Airplanes (VLA) as a special class of
aircraft under the Federal Aviation Regulations.

DATES: Send comments on or before September 8, 2023.

ADDRESSES: Send comments identified by Docket No. FAA-2023-0623 using
any of the following methods:
    Federal eRegulations Portal: Go to https://www.regulations.gov/ and
follow the online instructions for sending your comments
electronically.
    Mail: Send comments to Docket Operations, M-30, U.S. Department of
Transportation (DOT), 1200 New Jersey Avenue SE, Room W12-140, West
Building Ground Floor, Washington, DC 20590-0001.
    Hand Delivery of Courier: Take comments to Docket Operations in
Room W12-140 of the West Building Ground Floor at 1200 New Jersey
Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
    Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Docket: Background documents or comments received may be read at
https://www.regulations.gov/ at any time. Follow the online
instructions for accessing the docket or go to Docket Operations in
Room W12-140 of the West Building Ground Floor at 1200 New Jersey
Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Hieu Nguyen, Product Policy
Management, AIR-62B, Policy and Standards Division, Aircraft
Certification Service, Federal Aviation Administration; telephone 816-
329-4123; email [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites interested people to take part in the development
of this proposed policy by sending written comments, data, or views.
The most helpful comments reference a specific portion of the proposed
policy, explain the reason for any recommended change, and include
supporting data.
    Before acting on this proposal, the FAA will consider all comments
received on or before the closing date for comments. The FAA may
consider comments filed late if it is possible to do so without
incurring delay. The FAA may change the proposed policy based on the
comments received.

Privacy

    Except for Confidential Business Information (CBI) as described in
the following paragraph, the FAA will post all comments it receives,
without change, to https://www.regulations.gov/, including any personal
information you provide. Using the search function of the docket
website, anyone can find and read the electronic form of all comments
received into any FAA docket, including the name of the individual
sending the comment (or signing the comment for an association,
business, labor union, etc.). DOT's complete Privacy Act Statement can
be found in the Federal Register published on April 11, 2000 (65 FR
19477-19478), as well as at https://www.dot.gov/privacy.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this proposed policy contain
commercial or financial information that is customarily treated as
private, that you actually treat as private, and that is relevant or
responsive to these proposed airworthiness criteria, it is important
that you clearly designate the submitted comments as CBI. Please mark
each page of your submission containing CBI as ``PROPIN.'' The FAA will
treat such marked submissions as confidential under the FOIA, and the
indicated comments will not be placed in the public docket for this
notice. Send submissions containing CBI to the individual listed under
For Further Information Contact. Comments that the FAA receives, which
are not specifically designated as CBI, will be placed in the public
docket for this notice.

Background

    In 1992, the FAA issued Advisory Circular (AC) 21.17-3,\1\ ``Type
Certification of Very Light Airplanes Under [14 CFR] 21.17(b)'' (AC
21.17-3), to provide guidance on acceptable means of compliance for
type, production, and airworthiness certification for very light
airplanes (VLA). AC 21.17-3 designates the Joint Aviation Authorities
(JAA) of Europe publication, ``Joint Aviation Requirements for Very
Light Aeroplanes'' (April 26, 1990) (JAR-VLA), as acceptable
airworthiness criteria that provides an equivalent level of safety
under 14 CFR 21.17(b) for FAA type certification of VLA as a special
class of aircraft. After the European Aviation Safety Agency (now the
European Union Aviation Safety Agency) (EASA) was formed, EASA
developed its VLA certification standards (CS-VLA) from JAR-VLA, with
CS-VLA becoming effective on November 14, 2003.
---------------------------------------------------------------------------

    \1\ Available at https://drs.faa.gov.
---------------------------------------------------------------------------

    In 2016, the FAA promulgated amendment 23-64 of 14 CFR part 23,
Revision of Airworthiness Standards for Normal, Utility, Acrobatic, and
Commuter Category Airplanes. 81 FR 96572.\2\ In the preamble to that
final rule, the FAA stated that it intended to continue to allow CS-VLA
airplanes to be approved as a special, stand-alone class of airplane
while also allowing eligibility for certification in accordance with
part 23 using accepted means of compliance. In 2017, EASA issued CS-23
Amendment 5 and EASA recognized

CS-VLA as an acceptable means of compliance to CS-23 Amendment 5.
---------------------------------------------------------------------------

    \2\ https://www.regulations.gov; Docket No. FAA-2015-1621.
---------------------------------------------------------------------------

    AC 21.17-3 considers a VLA as a special class of aircraft, and
defines a VLA as an airplane with a single engine (spark- or
compression-ignition), not more than two seats, a maximum certificated
takeoff weight of not more than 750 kg (approximately 1,654 pounds),
and a stalling speed of not more than 45 knots (CAS) in the landing
configuration, and limited to normal category maneuvers and day visual
flight rule (VFR) operations only. AC 21.17-3 states that, ``VLA
operations at night and under [instrument flight rule] (IFR) conditions
would be acceptable, provided the VLA is certificated to the JAR-VLA
requirements plus certain additional [14 CFR] part 23 requirements,
including those related to night and IFR operations, and that both the
engine and propeller installed [are] type certificated under [14 CFR]
part 33 (or JAR-E) and part 35 (or JAR-P).''
    This notice of proposed policy contains additional airworthiness
criteria that are an acceptable means of compliance for design features
that differ from the VLA limits defined in AC 21.17-3 or that are not
adequately addressed by CS-VLA or JAR-VLA. The FAA previously applied
some of these additional airworthiness criteria to specific VLA type
designs,\3\ and these additional airworthiness criteria are among those
included in this notice of proposed policy.
---------------------------------------------------------------------------

    \3\ Aquila GmbH Engine Mount Connection Design Criteria and
Winglets for the Aquila GmbH AT01 JAR-VLA Airplane (68 FR 63841,
October 20, 2003); Night VFR Under the Special Class (JAR-VLA)
Regulations, Aquila Aviation by Excellence GmbH, Model AT01 (78 FR
50313, August 19, 2013); Advanced Avionics Under the Special Class
(JAR-VLA) Regulations; Aquila Aviation by Excellence GmbH, Model
AT01-100 (78 FR 68687, November 15, 2013).
---------------------------------------------------------------------------

Discussion

    The FAA establishes airworthiness criteria and issues type
certificates to ensure the safe design and operation of aircraft in
accordance with 49 U.S.C. 44701(a) and 44704. VLA can be type
certificated by the FAA as a special class of aircraft because VLA
airworthiness standards have not yet been established by regulation.
Under the provisions of 14 CFR 21.17(b), the airworthiness standards
for special class aircraft are the portions of the requirements in 14
CFR parts 23, 25, 27, 29, 31, 33, and 35 found by the FAA to be
appropriate and applicable to the specific type design and any other
airworthiness criteria found by the FAA to provide an equivalent level
of safety to the existing standards.
    With the adoption of performance-based regulations in part 23,
amendment 23-64, VLA airplanes are eligible for certification as normal
category airplanes in accordance with part 23 using accepted means of
compliance. Or, applicants may seek type certification of VLA airplanes
as a ``special class'' under Sec.  21.17(b) using CS-VLA or JAR-VLA
requirements. The FAA accepts CS-VLA and JAR-VLA airworthiness criteria
as providing an equivalent level of safety under Sec.  21.17(b) for
special class type certification of VLA airplanes. Special class
certification may include airplane designs that differ from the limits
defined in AC 21.17-3 (e.g., engine mount, winglets, night-VFR,
increased maximum certificated takeoff weight of not more than 850 kg
(1,874 pounds), increased stall speed of not more than 50 KCAS, or
lithium battery installation) provided the airplane was certificated to
CS-VLA or JAR-VLA and the certification basis includes additional
design requirements applicable and appropriate for the specific type
design. The FAA plans to revise AC 21.17-3 to incorporate the
additional acceptable airworthiness criteria proposed in this policy.
    VLA airplanes meeting the limits defined in AC 21.17-3 are
certificated to CS-VLA or JAR-VLA requirements. VLA airplane designs
that differ from the limits defined in AC 21.17-3 or designs that
incorporate features not adequately addressed by CS-VLA or JAR-VLA
requirements may be certificated to CS-VLA or JAR-VLA with additional
airworthiness criteria applicable and appropriate for the specific type
design. Specifically, this proposed policy contains additional
airworthiness criteria for such features as advanced avionic displays,
engine mount to composite airframe, winglets, night VFR operations,
increased maximum certificated takeoff weight and increased stall speed
from those defined in AC 21.17-3, and rechargeable lithium ion battery
installations.
    The following are the proposed acceptable airworthiness criteria
that provide an equivalent level of safety for VLA special class type
certification under 21.17(b), in addition to the requirements in CS-VLA
or JAR-VLA, that the FAA finds to be appropriate and applicable for
specific type designs. Each of the new criteria use a ``VLA.XXX''
section-numbering scheme.

Advanced Avionic Displays

    In addition to being certificated to CS-VLA or JAR-VLA
requirements, designs incorporating advanced avionic displays would
also need to meet the requirements of 14 CFR 23.1307, Miscellaneous
Equipment, amendment 23-49; Sec.  23.1311, Electronic Display
Instrument Systems, amendment 23-62; Sec.  23.1321, Arrangement and
Visibility, amendment 23-49; and Sec.  23.1359, Electrical System Fire
Protection, amendment 23-49.

Winglets

    In addition to being certificated to CS-VLA or JAR-VLA
requirements, airplanes with winglets on the wings would also need to
meet the requirements of JAR 23.445,\4\ amendment 1, Outboard Fins or
Winglets.
---------------------------------------------------------------------------

    \4\ JAR-23 amendment 1: Normal, Utility, Aerobatic, and Commuter
Category Aeroplanes, can be found in Docket No. FAA-2023-0623 at
https://www.regulations.gov.
---------------------------------------------------------------------------

Engine Mount to Composite Airframe

    In addition to being certificated to CS-VLA or JAR-VLA
requirements, designs with engine mounting to composite airframe would
also need to meet design requirements to address fire protection of the
connection between the metal structure of an engine mount and composite
airframe by demonstrating that the composite airframe can withstand a
fire while carrying loads.

Night-VFR Operations

    In addition to being certificated to CS-VLA or JAR-VLA, for
certification for night VFR operations, the airplane would also need to
meet design requirements to address the flight performance, design and
construction, powerplant installation, equipment, and operating
limitations and information, that are necessary for night VFR
operations.

Increased Maximum Certificated Takeoff Weight and Increased Stall Speed

    In addition to being certificated to CS-VLA or JAR-VLA, for
approval of airplane designs with an increased maximum certificated
takeoff weight of not more than 850 kg (1,874 pounds) and increased
stall speed of not more than 50 KCAS, the airplane would also need to
meet design requirements to address the flight performance, structure,
crashworthiness, and performance information, that are necessary for
the increased weight and stall speed.
    (a) If an Equivalent Level of Safety (ELOS) to CS-VLA 1143(g) and
CS-VLA 1147(b) is requested, the airplane would need to meet additional
design requirements to incorporate design features to increase
reliability, and

maintenance items that make the engine controls attachment not likely
to separate in flight, which are necessary to ensure that if the
mixture control separates at the engine fuel metering device, the
airplane is capable of continued safe flight and landing.
    (b) Instead of the stall-characteristics requirements in CS-VLA
201(c), CS-VLA 201(f), and CS-VLA 203(c)(4), the requirements from CS
23.201(c), CS 23.201(e), and CS 23.203(c)(4)(ii), respectively, would
need to be used.
    (c) In place of the handling quality attributes in CS-VLA 177(a)(2)
and CS-VLA 177(a)(3), neutral lateral stability would need to be
achieved by showing compliance with the requirements in VLA.170.
    (d) If an ELOS to CS-VLA 161(b)(2)(ii) is requested, additional
airworthiness criteria from CS 23.161(c)(4), CS 23.73 (a), CS 23.75
(a)(1), (b), (c), and (d), CS 23.77(a), CS 23.145 (b)(5) and (d), CS
23.153(a), (b), (c), and (d), CS 23.157(c) and (d), and CS 23.175(c),
would need to be met to address airplane trim requirements.

Rechargeable Lithium Ion Battery

    In addition to being certificated to CS-VLA or JAR-VLA, airplanes
with rechargeable lithium ion battery would need to meet airworthiness
criteria containing safety objectives necessary to address design and
installation of rechargeable lithium ion batteries.
    The contents of this document do not have the force and effect of
law and are not meant to bind the public in any way. This document is
intended only to provide clarity to the public regarding existing
requirements under the law or agency policies.

Authority Citation

    The authority citations for these airworthiness criteria are as
follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701, 44702, 44704.

Policy

    The FAA proposes to continue to allow type certification of VLA as
a special class of aircraft under 14 CFR 21.17(b) using CS-VLA or JAR-
VLA requirements, while also allowing eligibility for certification as
a normal category airplane in accordance with part 23 using accepted
means of compliance. The FAA accepts CS-VLA and JAR-VLA airworthiness
criteria as providing an equivalent level of safety under Sec.
21.17(b) special class type certification of VLA airplanes. The FAA
would consider proposals for airplane designs that differ from the VLA
limits defined in AC 21.17-3 for type certification as a special class
of aircraft under Sec.  21.17(b), provided the VLA were certificated to
the JAR-VLA or CS-VLA requirements plus additional airworthiness
criteria the FAA finds appropriate and applicable for the proposed
design. Additional design requirements may include but are not limited
to the airworthiness criteria identified in the following paragraphs.
Other additional airworthiness criteria may be required to address
specific design proposals.

Advanced Avionic Displays

    If the airplane has advanced avionic displays installed, the
following requirements from 14 CFR part 23 apply:
     14 CFR 23.1307 at amendment 23-49, Miscellaneous
Equipment.
     14 CFR 23.1311 at amendment 23-62, Electronic Display
Instrument Systems.
     14 CFR 23.1321 at amendment 23-49, Arrangement and
Visibility.
     14 CFR 23.1359 at amendment 23-49, Electrical System Fire
Protection.

Winglets

    If the airplane has any outboard fins or winglets installed, the
design must comply with JAR 23.445.

Engine Mount to Composite Airframe

VLA.001
    The requirements in this section are applicable to airplanes with
an engine mounting to composite airframe. Tests must be performed that
demonstrate that the interface between the metallic engine mount and
the glass fiber reinforced plastic fuselage withstand a fire for 15
minutes while carrying loads under the following conditions:
    (a) With one lost engine mount fitting the loads are distributed
over the remaining three engine mount fittings. The most critical of
these fittings must be chosen for the test.
    The loads are:
    (1) In Z-direction the mass of the propulsion unit multiplied by a
maneuvering load factor resulting from a 30[deg] turn for 15 minutes,
superimposed by a maneuvering load of 3 seconds representing the
maximum positive limit maneuvering load factor of n = 3.8 from JAR-VLA
337(a).
    (2) In X-direction the engine propulsion force at maximum
continuous power for 5 minutes.
    (b) The flame to which the component test arrangement is subjected
must provide a temperature of 500 [deg]C within the target area.
    (c) The flame must be large enough to maintain the required
temperature over the entire test zone, i.e., the fitting on the engine
compartment side.
    (d) It must be shown that the test equipment, e.g., burner and
instrumentation are of sufficient power, size, and precision to yield
the test requirements arising from paragraphs (a) through (c) of this
section.

Night-VFR Operations

VLA.005
    The requirements in sections VLA.005 through VLA.105 are applicable
to airplanes with a single engine (spark- or compression-ignition)
having not more than two seats, with a maximum certificated takeoff
weight of not more than 750 kg and a stalling speed in the landing
configuration of not more than 83 km/h (45 knots) (CAS), to be approved
for day-VFR [visual flight rules] or for day-and night-VFR.
VLA.010
    (a) Any short period oscillation not including combined lateral-
directional oscillations occurring between the stalling speed and the
maximum allowable speed appropriate to the configuration of the
airplane must be heavily damped with the primary controls--
    (1) Free; and
    (2) In a fixed position.
    (b) Any combined lateral-directional oscillations (``Dutch roll'')
occurring between the stalling speed and the maximum allowable speed
appropriate to the configuration of the airplane must be damped to 1/10
amplitude in 7 cycles with the primary controls--
    (1) Free; and
    (2) In a fixed position.
    (c) Any long period oscillation of the flight path (phugoid) must
not be so unstable as to cause an unacceptable increase in pilot
workload or otherwise endanger the airplane. When under the conditions
specified in CS-VLA 175, the longitudinal control force required to
maintain speeds differing from the trimmed speed by at least plus or
minus 15% is suddenly released, the response of the airplane must not
exhibit any dangerous characteristics nor be excessive in relation to
the magnitude of the control force released.
VLA.015
    The pilot compartment must be free from glare and reflections that
could interfere with the pilot's vision under all operations for which
the certification is requested. The pilot compartment must be designed
so that--
    (a) The pilot's view is sufficiently extensive, clear, and
undistorted, for safe operation;
    (b) The pilot is protected from the elements so that moderate rain

conditions do not unduly impair the pilot's view of the flight path in
normal flight and while landing; and
    (c) Internal fogging of the windows covered under paragraph (a) of
this section can be easily cleared by the pilot unless means are
provided to prevent fogging.
VLA.020
    (a) The airplane must be so designed that unimpeded and rapid
escape is possible in any normal and crash attitude.
    (b) The opening system must be designed for simple and easy
operation. It must function rapidly and be designed so that it can be
operated by each occupant strapped in their seat, and also from outside
the cockpit. Reasonable provisions must be provided to prevent jamming
by fuselage deformation.
    (c) The exit must be marked for easy location and operation even in
darkness.
VLA.025
    (a) The engine must meet the specifications of CS-E, amendment
6,\5\ or 14 CFR part 33, amendment 33-36, for night-VFR operation.
---------------------------------------------------------------------------

    \5\ CS-E amendment 6: Certification Specifications and
Acceptable Means of Compliance for Engines can be found in Docket
No. FAA-2023-0623 at https://www.regulations.gov.
---------------------------------------------------------------------------

    (b) Restart capability. An altitude and airspeed envelope must be
established for the airplane for in-flight engine restarting and the
installed engine must have a restart capability within that envelope.
VLA.030
    (a) For day-VFR operation, the propeller must meet the
specifications of CS-22 Subpart J, amendment 3. For night-VFR
operations the propeller and its control system must meet the
specifications of CS-P, amendment 2,\6\ or 14 CFR part 35, amendment
35-10, except for fixed pitch propellers, for which CS-22 \7\ subpart J
is sufficient.
---------------------------------------------------------------------------

    \6\ CS-P amendment 2: Certification Specifications and
Acceptable Means of Compliance for Propellers can be found in Docket
FAA-2023-0623 at https://www.regulations.gov.
    \7\ CS-22 amendment 3: Certification Specifications, Acceptable
Means of Compliance and Guidance Material for Sailplanes and Powered
Sailplanes can be found in Docket No. FAA-2023-0623 at https://www.regulations.gov.
---------------------------------------------------------------------------

    (b) Engine power and propeller shaft rotational speed may not
exceed the limits for which the propeller is certificated or approved.
VLA.035
    If an air filter is used to protect the engine against foreign
material particles in the induction air supply--
    (a) Each air filter must be capable of withstanding the effects of
temperature extremes, rain, fuel, oil, and solvents to which it is
expected to be exposed in service and maintenance; and
    (b) Each air filter must have a design feature to prevent material
separated from the filter media from re-entering the induction system
and interfering with proper fuel metering operation.
VLA.040
    (a) Each exhaust system must ensure safe disposal of exhaust gases
without fire hazard or carbon monoxide contamination in the personnel
compartment.
    (b) Each exhaust system part with a surface hot enough to ignite
flammable fluids or vapours must be located or shielded so that leakage
from any system carrying flammable fluids or vapours will not result in
a fire caused by impingement of the fluids or vapours on any part of
the exhaust system including shields for the exhaust system.
    (c) Each exhaust system component must be separated by fireproof
shields from adjacent flammable parts of the airplane that are outside
the engine compartment.
    (d) No exhaust gases may discharge dangerously near any fuel or oil
system drain.
    (e) Each exhaust system component must be ventilated to prevent
points of excessively high temperature.
    (f) Each exhaust heat exchanger must incorporate means to prevent
blockage of the exhaust port after any internal heat exchanger failure.
    (g) No exhaust gases may be discharged where they will cause a
glare seriously affecting the pilot's vision at night.
VLA.045
    (a) The power or supercharger control must give a positive and
immediate responsive means of controlling its engine or supercharger.
    (b) If a power control incorporates a fuel shut-off feature, the
control must have a means to prevent the inadvertent movement of the
control into the shut-off position. The means must--
    (1) Have a positive lock or stop at the idle position; and
    (2) Require a separate and distinct operation to place the control
in the shut-off position.
    (c) Each power or thrust control must be designed so that if the
control separates at the engine fuel metering device, the airplane is
capable of continuing safe flight and landing.
VLA.050
    (a) The control must require a separate and distinct operation to
move the control toward lean or shut-off position.
    (b) Each manual engine mixture control must be designed so that, if
the control separates at the engine fuel metering device, the airplane
is capable of continuing safe flight and landing.
VLA.055
    If warning, caution, or advisory lights are installed in the
cockpit, they must be--
    (a) Red, for warning lights (lights indicating a hazard which may
require immediate corrective action);
    (b) Amber, for caution lights (lights indicating the possible need
for future corrective action);
    (c) Green, for safe operation lights; and
    (d) Any other color, including white, for lights not described in
paragraphs (a) through (c) of this section, provided the color differs
sufficiently from the colors prescribed in paragraphs (a) through (c)
of this section to avoid possible confusion.
    (e) If warning, caution, or advisory lights are installed in the
cockpit, they must be effective under all probable cockpit lighting
conditions.
VLA.060
    (a) Each instrument provided with static pressure case connections
must be so vented that the influence of airplane speed, the opening and
closing of windows, moisture, or other foreign matter, will not
significantly affect the accuracy of the instruments.
    (b) The design and installation of a static pressure system must be
such that--
    (1) Positive drainage of moisture is provided;
    (2) Chafing of the tubing, and excessive distortion or restriction
at bends in the tubing, is avoided; and
    (3) The materials used are durable, suitable for the purpose
intended, and protected against corrosion.
    (c) Each static pressure system must be calibrated in flight to
determine the system error. The system error, in indicated pressure
altitude, at sea-level, with a standard atmosphere, excluding
instrument calibration error, may not exceed 9 m (30 ft) per 185 km/h (100 knots) speed for the appropriate
configuration in the speed range between 1.3 VSO with flaps
extended and 1.8 VS1 with flaps retracted. However, the
error need not be less than 9 m (30 ft).

VLA.065
    For each airplane--
    (a) Each gyroscopic instrument must derive its energy from power
sources adequate to maintain its required accuracy at any speed above
the best rate-of-climb speed;
    (b) Each gyroscopic instrument must be installed so as to prevent
malfunction due to rain, oil, and other detrimental elements; and
    (c) There must be a means to indicate the adequacy of the power
being supplied to the instruments.
    (d) For Night VFR operation there must be at least two independent
sources of power and a manual or an automatic means to select each
power source for each instrument that uses a power source.
VLA.070
    (a) Electrical system capacity. Each electrical system must be
adequate for the intended use. In addition--
    (1) Electric power sources, their transmission cables, and their
associated control and protective devices, must be able to furnish the
required power at the proper voltage to each load circuit essential for
safe operation; and
    (2) Compliance with paragraph (a)(l) of this section must be shown
by an electrical load analysis, or by electrical measurements, that
account for the electrical loads applied to the electrical system in
probable combinations and for probable durations.
    (b) Functions. For each electrical system, the following apply:
    (1) Each system, when installed, must be--
    (i) Free from hazards in itself, in its method of operation, and in
its effects on other parts of the airplane;
    (ii) Protected from fuel, oil, water, other detrimental substances,
and mechanical damage; and
    (iii) So designed that the risk of electrical shock to occupants
and ground personnel is reduced to a minimum.
    (2) Electric power sources must function properly when connected in
combination or independently.
    (3) No failure or malfunction of any electric power source may
impair the ability of any remaining source to supply load circuits
essential for safe operation.
    (4) Each electric power source control must allow the independent
operation of each source, except that controls associated with
alternators that depend on a battery for initial excitation or for
stabilization need not break the connection between the alternator and
its battery.
    (5) Each generator must have an overvoltage control designed and
installed to prevent damage to the electrical system, or to equipment
supplied by the electrical system, that could result if that generator
were to develop an overvoltage condition.
    (d) Instruments. There must be a means to indicate to the pilot
that the electrical power supplies are adequate for safe operation. For
direct current systems, an ammeter in the battery feeder may be used.
    (e) Fire resistance. Electrical equipment must be so designed and
installed that in the event of a fire in the engine compartment, during
which the surface of the firewall adjacent to the fire is heated to
1,100 [deg]C for 5 minutes or to a lesser temperature substantiated by
the applicant, the equipment essential to continued safe operation and
located behind the firewall will function satisfactorily and will not
create an additional fire hazard. This may be shown by test or
analysis.
    (f) External power. If provisions are made for connecting external
power to the airplane, and that external power can be electrically
connected to equipment other than that used for engine starting, means
must be provided to ensure that no external power supply having a
reverse polarity, or a reverse phase sequence, can supply power to the
airplane's electrical system. The location must allow such provisions
to be capable of being operated without hazard to the airplane or
persons.
VLA.075
    (a) Each storage battery must be designed and installed as
prescribed in this section.
    (b) Safe cell temperatures and pressures must be maintained during
any probable charging and discharging condition. No uncontrolled
increase in cell temperature may result when the battery is recharged
(after previous complete discharge)--
    (1) At maximum regulated voltage or power;
    (2) During a flight of maximum duration; and
    (3) Under the most adverse cooling condition likely to occur in
service.
    (c) Compliance with paragraph (b) of this section must be shown by
tests unless experience with similar batteries and installations has
shown that maintaining safe cell temperatures and pressures presents no
problem.
    (d) No explosive or toxic gases emitted by any battery in normal
operation, or as the result of any probable malfunction in the charging
system or battery installation, may accumulate in hazardous quantities
within the airplane.
    (e) No corrosive fluids or gases that may escape from the battery
may damage surrounding structures or adjacent essential equipment.
    (f) Each nickel cadmium battery installation capable of being used
to start an engine or auxiliary power unit must have provisions to
prevent any hazardous effect on structure or essential systems that may
be caused by the maximum amount of heat the battery can generate during
a short circuit of the battery or of its individual cells.
    (g) Nickel cadmium battery installations capable of being used to
start an engine or auxiliary power unit must have--
    (1) A system to control the charging rate of the battery
automatically so as to prevent battery overheating;
    (2) A battery temperature sensing and over-temperature warning
system with a means for disconnecting the battery from its charging
source in the event of an overtemperature condition; or
    (3) A battery failure sensing and warning system with a means for
disconnecting the battery from its charging source in the event of
battery failure.
    (h) In the event of a complete loss of the primary electrical power
generating system, the battery must be capable of providing 30 minutes
of electrical power to those loads that are essential to continued safe
flight and landing. The 30-minute time period includes the time needed
for the pilot(s) to recognize the loss of generated power and to take
appropriate load shedding action.
VLA.080
    The instrument lights must--
    (a) Make each instrument and control easily readable and
discernible;
    (b) Be installed so that their direct rays, and rays reflected from
the windshield or other surface, are shielded from the pilot's eyes;
and
    (c) Have enough distance or insulating material between current
carrying parts and the housing so that vibration in flight will not
cause shorting. (A cabin dome light is not an instrument light.)
VLA.085
    Each taxi and landing light must be designed and installed so
that--
    (a) No dangerous glare is visible to the pilots;
    (b) The pilot is not seriously affected by halation;
    (c) It provides enough light for night operations; and
    (d) It does not cause a fire hazard in any configuration.

VLA.090
    (a) Electronic equipment and installations must be free from
hazards in themselves, in their method of operation, and in their
effects on other components.
    (b) For operations for which electronic equipment is required,
compliance must be shown with CS-VLA 1309.
VLA.095
    (a) A placard meeting the requirements of this section must be
installed on or near the magnetic direction indicator.
    (b) The placard must show the calibration of the instrument in
level flight with the engine operating.
    (c) The placard must state whether the calibration was made with
radio receivers on or off.
    (d) Each calibration reading must be in terms of magnetic headings
in not more than 30[deg] increments.
    (e) If a magnetic non-stabilized direction indicator can have a
deviation of more than 10[deg] caused by the operation of electrical
equipment, the placard must state which electrical loads, or
combination of loads, would cause a deviation of more than 10[deg] when
turned on.
VLA.100
    The following placards must be plainly visible to the pilot:
    (a) A placard stating the following airspeeds (IAS):
    (1) Design maneuvering speed, VA;
    (2) The maximum landing gear operating speed, VLO.
    (b) A placard stating the following approved operation:
    (1) For day-VFR only operation, a placard stating, ``This airplane
is classified as a very light airplane approved for day-VFR only, in
non-icing conditions. All aerobatic maneuvers, including intentional
spinning, are prohibited. See Flight Manual for other limitations.''
    (2) If night-VFR operation is approved, a placard stating, ``This
airplane is classified as a very light airplane approved for day- and
night-VFR operation, in non-icing conditions. All aerobatic maneuvers,
including intentional spinning, are prohibited. See Flight Manual for
other limitations.''
VLA.105
    (a) Airspeed limitations. The following information must be
furnished--
    (1) Information necessary for the marking of the airspeed limits on
the indicator, as required in CS-VLA 1545, and the significance of the
color coding used on the indicator.
    (2) The speeds VA, VLO, VLE
(maximum landing gear extended speed) where appropriate.
    (b) Weights. The following information must be furnished:
    (1) The maximum weight.
    (2) Any other weight limits, if necessary.
    (c) Center of gravity. The established c.g. limits required by CS-
VLA 23 must be furnished.
    (d) Maneuvers. Authorized maneuvers established in accordance with
CS-VLA 3 must be furnished.
    (e) Flight load factors. Maneuvering load factors: the following
must be furnished--
    (1) The factors corresponding to point A and point C in the figure
for CS-VLA 333(b), stated to be applicable at VA.
    (2) The factors corresponding to point D and point E of figure 1 of
CS-VLA 333(b) to be applicable at never exceed speed, VNE.
    (3) The factor with wing flaps extended as specified in CS-VLA 345.
    (f) The kinds of operation (day-VFR or day- and night-VFR,
whichever is applicable) in which the airplane may be used, must be
stated. The minimum equipment required for the operation must be
listed.
    (g) Powerplant limitations. The following information must be
furnished:
    (1) Limitation required by CS-VLA 1521.
    (2) Information necessary for marking the instruments required by
CS-VLA 1549 through 1551.
    (3) Fuel and oil designation.
    (4) For two-stroke engines, fuel/oil ratio.
    (h) Placards. Placards required by CS-VLA 1555 through 1561 must be
presented.

Increased Maximum Certificated Takeoff Weight and Increased Stall Speed

VLA.110
    If the maximum certificated takeoff weight is higher than 750 kg,
but not more than 850 kg, the requirements in sections VLA.120 through
VLA.210 apply.
VLA.115
    If the stall speed in landing configuration is higher than 45
knots, but not more than 50 knots (CAS), the requirements in section
VLA.120 through VLA.210 apply.
VLA.120
    The maximum horizontal distance traveled in still air, in km per
1,000 m (nautical miles per 1,000 ft) of altitude lost in a glide, and
the speed necessary to achieve this, must be determined with the engine
inoperative and its propeller in the minimum drag position, and landing
gear and wing flaps in the most favorable available position.
VLA.125
    (a) Each seat is to be equipped with at least a 4-point harness
system;
    (b) The applicant shall evaluate the head strike path with
validated methods, and minimize the risk of injury in case of a head
contact with the aircraft structure or interior.
    (c) The design shall provide reasonable precautions to minimize the
lumbar compression loads experienced by occupants in survivable crash
landings;
    (d) Each seat/harness system shall be statically tested to an
ultimate inertia load factor of 18g forward, considering an occupant's
mass of 77 kg. The lapbelt should react 60% of this load, and the upper
torso restraint should react 40% of this load.
VLA.130
    (a) The airplane, although it may be damaged in emergency landing
conditions, must be designed as prescribed in this section to protect
each occupant under those conditions.
    (b) The structure must be designed to give each occupant reasonable
chances of escaping injury in a minor crash landing when--
    (1) Proper use is made of seat belts and shoulder harnesses; and
    (2) The occupant experiences the ultimate inertia forces listed
below:
    (i) Upward 3.0g
    (ii) Forward 9.0g
    (iii) Sideward 1.5g.
    (c) Each item of mass within the cabin that could injure an
occupant if it came loose must be designed for the ultimate inertia
load factors:
    (1) Upward, 3.0g;
    (2) Forward, 18.0g; and
    (3) Sideward, 4.5g.
    Engine mount and supporting structure are included in the above
analysis if they are installed behind and above the seating
compartment.
    (d) The structure must be designed to protect the occupants in a
complete turnover, assuming, in the absence of a more rational
analysis--
    (1) An upward ultimate inertia force of 3g; and
    (2) A coefficient of friction of 0.5 at the ground.
    (e) Each airplane with retractable landing gear must be designed to
protect each occupant in a landing--
    (1) With the wheels retracted;

    (2) With moderate descent velocity; and
    (3) Assuming, in the absence of a more rational analysis;
    (i) A downward ultimate inertia force of 3g; and
    (ii) A coefficient of friction of 0.5 at the ground.
VLA.135
    (a) Each baggage compartment must be designed for its placarded
maximum weight of contents and for the critical load distributions at
the appropriate maximum load factors corresponding to the flight and
ground load conditions for the airplane.
    (b) There must be means to prevent the contents of any baggage
compartment from becoming a hazard by shifting, and to protect any
controls, wiring, lines, equipment, or accessories whose damage of
failure would affect safe operations.
    (c) Baggage compartments must be constructed of materials which are
at least flame resistant.
    (d) Designs which provide for baggage to be carried must have means
to protect the occupants from injury under the ultimate inertia forces
specified in CS-VLA 561(b)(2).
    (e) If there is no structure between baggage and occupant
compartments, the baggage items located behind the occupants and those
which might become a hazard in a crash must be secured for 1.33 x 18g.
VLA.140
    (a) General. For each airplane, the following information must be
furnished:
    (1) The takeoff distance determined under CS-VLA 51, the airspeed
at the 15 m height, the airplane configuration (if pertinent), the kind
of surface in the tests, and the pertinent information with respect to
cowl flap position, use of flight path control devices, and use of the
landing gear retraction system.
    (2) The landing distance determined under CS-VLA 75, the airplane
configuration (if pertinent), the kind of surface used in the tests,
and the pertinent information with respect to flap position and the use
of flight path control devices.
    (3) The steady rate or gradient of climb determined under CS-VLA 65
and 77, the airspeed, power, and the airplane configuration.
    (4) The calculated approximate effect on takeoff distance
(paragraph (a)(1) of this section), landing distance (paragraph (a)(2)
of this section), and steady rates of climb (paragraph (a)(3) of this
section), of variations in altitude and temperature.
    (5) The maximum atmospheric temperature at which compliance with
the cooling provisions of CS-VLA 1041 through 1047 is shown.
    (6) The glide performance determined under VLA.120.
    (b) Skiplanes. For skiplanes, a statement of the approximate
reduction in climb performance may be used instead of new data for
skiplane configuration, if--
    (1) The landing gear is fixed in both landplane and skiplane
configurations;
    (2) The climb requirements are not critical; and
    (3) The climb reduction in the skiplane configurations is small
(0.15 to 0.25 m/s (30 to 50 feet per minute)).
    (c) The following information concerning normal procedures must be
furnished:
    (1) The demonstrated crosswind velocity and procedures and
information pertinent to operation of the airplane in crosswinds, and
    (2) The airspeeds, procedures, and information pertinent to the use
of the following airspeeds:
    (i) The recommended climb speed and any variation with altitude.
    (ii) VX (speed for best angle of climb) and any
variation with altitude.
    (iii) The approach speeds, including speeds for transition to the
balked landing condition.
    (d) An indication of the effect on takeoff distance of a grass
surface as determined from at least one takeoff measurement on short
mown dry grass must be furnished.
VLA.145
    (a) The rotation speed VR, is the speed at which the
pilot makes a control input with the intention of lifting the airplane
out of contact with the runway.
    (b) VR must not be less than stalling speed,
VS1.
    (c) The Airplane Flight Manual must provide the rotation speed
established above for normal takeoff procedures.
    If an Equivalent Level of Safety (ELOS) to CS-VLA 1143(g) and CS-
VLA 1147(b) is requested, VLA.150 and VLA.155 are applicable.
VLA.150
    Power or supercharger control attachment design must include:
    (a) Features which are not likely to separate in flight (i.e., a
large load-bearing washer adjacent to the outside face of the power
control cable rod end fitting which attaches to the fuel-metering
device);
    (b) Mandatory inspection intervals;
    (c) Inspection procedures;
    (d) Component replacement criteria.
VLA.155
    Mixture control attachment design must include:
    (a) Features which are not likely to separate in flight (i.e., a
large load-bearing washer adjacent to the outside face of the power
control cable rod end fitting which attaches to the fuel-metering
device);
    (b) Mandatory inspection intervals;
    (c) Inspection procedures;
    (d) Component replacement criteria.
VLA.160
    (a) For an airplane with independently controlled roll and
directional controls, it must be possible to produce and to correct
roll by unreversed use of the rolling control and to produce and to
correct yaw by unreversed use of the directional control, up to the
time the airplane stalls.
    (b) For an airplane with interconnected lateral and directional
controls (2 controls) and for an airplane with only one of these
controls, it must be possible to produce and correct roll by unreversed
use of the rolling control without producing excessive yaw, up to the
time the airplane stalls.
    (c) The wing level stall characteristics of the airplane must be
demonstrated in flight as follows: The airplane speed must be reduced
with the elevator control until the speed is slightly above the
stalling speed, then the elevator control must be pulled back so that
the rate of speed reduction will not exceed 1.9 km/h (one knot) per
second until a stall is produced, as shown by an uncontrollable
downward pitching motion of the airplane, or until the control reaches
the stop. Normal use of the elevator control for recovery is allowed
after the control has been held against the stop for not less than two
seconds.
    (d) Except where made inapplicable by the special features of a
particular type of airplane, the following apply to the measurement of
loss of altitude during a stall:
    (1) The loss of altitude encountered in the stall (power on or
power off) is the change in altitude (as observed on the sensitive
altimeter testing installation) between the altitude at which the
airplane pitches and the altitude at which horizontal flight is
regained.
    (2) If power or thrust is required during stall recovery, the power
or thrust used must be that which would be used under the normal
operating procedures selected by the applicant for this maneuver.
However, the power used to regain level flight may not be applied until
flying control is regained.

    (e) During the recovery part of the maneuver, it must be possible
to prevent more than 15[deg] of roll or yaw by the normal use of
controls.
    (f) Compliance with the requirements of this section must be shown
under the following conditions:
    (1) Wing flaps. Retracted, fully extended and each intermediate
normal operating position;
    (2) Landing gear. Retracted and extended;
    (3) Cowl flaps. Appropriate to configuration;
    (4) Power
    (i) Power off; and
    (ii) 75% maximum continuous power. If the power-to-weight ratio at
75% of maximum continuous power results in extreme nose-up attitudes,
the test may be carried out with the power required for level flight in
the landing configuration at maximum landing weight and a speed of 1.4
stalling speed, VS0, but the power may not be less than 50%
maximum continuous power.
    (5) Trim. The airplane trimmed at a speed as near 1.5
VS1 as practicable.
    (6) Propeller. Full increase rpm position for the power off
condition.
VLA.165
    Turning flight and accelerated stalls must be demonstrated in tests
as follows:
    (a) Establish and maintain a coordinated turn in a 30[deg] bank.
Reduce speed by steadily and progressively tightening the turn with the
elevator until the airplane is stalled or until the elevator has
reached its stop. The rate of speed reduction must be constant, and--
    (1) For a turning flight stall, may not exceed 1.9 km/h (one knot)
per second; and
    (2) For an accelerated stall, be 5.6 to 9.3 km/h (3 to 5 knots) per
second with steadily increasing normal acceleration.
    (b) When the stall has fully developed or the elevator has reached
its stop, it must be possible to regain level flight by normal use of
controls and without--
    (1) Excessive loss of altitude;
    (2) Undue pitchup;
    (3) Uncontrollable tendency to spin;
    (4) Exceeding 60[deg] of roll in either direction from the
established 30[deg] bank; and
    (5) For accelerated entry stalls, without exceeding the maximum
permissible speed or the allowable limit load factor.
    (c) Compliance with the requirements of this section must be shown
with--
    (1) Wing Flaps. Retracted and fully extended for turning flight and
accelerated entry stalls, and intermediate, if appropriate, for
accelerated entry stalls;
    (2) Landing Gear. Retracted and extended;
    (3) Cowl Flaps. Appropriate to configuration;
    (4) Power. 75% maximum continuous power. If the power-to-weight
ratio at 75% of maximum continuous power results in extreme nose-up
attitudes, the test may be carried out with the power required for
level flight in the landing configuration at maximum landing weight and
a speed of 1.4 VS0, but the power may not be less than 50%
maximum continuous power.
    (5) Trim. 1.5 VS1 or minimum trim speed, whichever is
higher.
VLA.170
    (a) Three-control airplanes. The stability requirements for three-
control airplanes are as follows:
    (1) The static directional stability, as shown by the tendency to
recover from a skid with the rudder free, must be positive for any
landing gear and flap position appropriate to the takeoff, climb,
cruise, and approach configurations. This must be shown with power up
to maximum continuous power, and at speeds from 1.2 VS1 up
to maximum allowable speed for the condition being investigated. The
angle of skid for these tests must be appropriate to the type of
airplane. At larger angles of skid up to that at which full rudder is
used or a control force limit in CS-VLA 143 is reached, whichever
occurs first, and at speeds from 1.2 VS1 to VA,
the rudder pedal force must not reverse.
    (2) The static lateral stability, as shown by the tendency to raise
the low wing in a slip, must not be negative for any landing gear and
flap positions. This must be shown with power up to 75% of maximum
continuous power at speeds above 1.2 VS1, up to the maximum
allowable speed for the configuration being investigated. The static
lateral stability may not be negative at 1.2 VS1. The angle
of slip for these tests must be appropriate to the type of airplane,
but in no case may the slip angle be less than that obtainable with
10[deg] of bank.
    (3) In straight, steady slips at 1.2 VS1 for any landing
gear and flap positions, and for power conditions up to 50% of maximum
continuous power, the rudder control movements and forces must increase
steadily (but not necessarily linearly) as the angle of slip is
increased up to the maximum appropriate to the type of airplane. At
larger slip angles up to the angle at which full rudder or aileron
control is used or a control force limit contained in CS-VLA 143 is
obtained, aileron control movements and forces must not reverse. Enough
bank must accompany slipping to hold a constant heading. Rapid entry
into, or recovery from, a maximum slip may not result in uncontrollable
flight characteristics. The applicant must demonstrate that lateral
static stability characteristics do not result in any unsafe handling
qualities.
    (b) Two-control (or simplified control) airplanes. The stability
requirements for two-control airplanes are as follows:
    (1) The directional stability of the airplane must be shown by
showing that, in each configuration, it can be rapidly rolled from a
45[deg] bank in one direction to a 45[deg] bank in the opposite
direction without showing dangerous skid characteristics.
    (2) The lateral stability of the airplane must be shown by showing
that it will not assume a dangerous attitude or speed when the controls
are abandoned for 2 minutes. This must be done in moderately smooth air
with the airplane trimmed for straight level flight at 0.9
VH (maximum speed in level flight with maximum continuous
power) or VC (design cruising speed), whichever is lower,
with flaps and landing gear retracted, and with a rearward center of
gravity.
    If an ELOS to CS-VLA 161(b)(2)(ii) is requested, VLA.175 through
VLA.210 are applicable.
VLA.175
    Longitudinal trim. The airplane must maintain longitudinal trim
under each of the following conditions:
    (a) Approach with landing gear extended and with--
    (i) A 3[deg] angle of descent, with flaps retracted and at a speed
of 1.4 VS1;
    (ii) A 3[deg] angle of descent, flaps in the landing position(s) at
reference landing approach speed, VREF; and
    (iii) An approach gradient equal to the steepest used in the
landing distance demonstrations of CS 23.75, flaps in the landing
position(s) at VREF.
VLA.180
    For normal, utility and aerobatic category reciprocating engine-
powered airplanes of 2,722 kg (6,000 lb) or less maximum weight, the
reference landing approach speed, VREF, must not be less
than the greater of minimum control speed, VMC, determined
under CS 23.149(b) with the wing flaps in the most extended takeoff
setting, and 1.3 VSO.
VLA.185
    (a) A steady approach at not less than VREF, determined
in accordance with CS 23.73(a), (b) or (c) as appropriate, must be
maintained down to 15 m (50 ft) height and--

    (1) The steady approach must be at a gradient of descent not
greater than 5.2% (3[deg]) down to the 15 m (50 ft) height.
    (b) A constant configuration must be maintained throughout the
maneuver.
    (c) The landing must be made without excessive vertical
acceleration or tendency to bounce, nose-over, ground loop, porpoise,
or water loop.
    (d) It must be shown that a safe transition to the balked landing
conditions of CS 23.77 can be made from the conditions that exist at
the 15 m (50 ft) height, at maximum landing weight, or the maximum
landing weight for altitude and temperature of CS 23.63(c)(2) or
(d)(2), as appropriate.
VLA.190
    (a) Each normal, utility, and aerobatic category reciprocating
engine-powered airplane of 2,722 kg (6,000 lb) or less maximum weight
must be able to maintain a steady gradient of climb at sea-level of at
least 3.3% with--
    (1) Takeoff power on each engine;
    (2) The landing gear extended;
    (3) The wing flaps in the landing position, except that if the
flaps may safely be retracted in 2 seconds or less without loss of
altitude and without sudden changes of angle of attack, they may be
retracted; and
    (4) A climb speed equal to VREF, as defined in CS
23.73(a).
VLA.195
    (a) It must be possible to carry out the following maneuvers
without requiring the application of single-handed control forces
exceeding those specified in CS 23.143(c), unless otherwise stated. The
trimming controls must not be adjusted during the maneuvers:
    (1) With power off, landing gear and flaps extended and the
airplane as nearly as possible in trim at VREF, obtain and
maintain airspeeds between 1.1 VS0 and either 1.7
VS0 or VFE (maximum flap extended speed),
whichever is lower, without requiring the application of two-handed
control forces exceeding those specified in CS 23.143(c).
    (b) It must be possible, with a pilot control force of not more
than 44.5 N (10 lbf), to maintain a speed of not more than
VREF during a power-off glide with landing gear and wing
flaps extended.
VLA.200
    It must be possible, while in the landing configuration, to safely
complete a landing without exceeding the one-hand control force limits
specified in CS 23.143(c) following an approach to land--
    (a) At a speed of VREF 9.3 km/h (5 knots);
    (b) With the airplane in trim, or as nearly as possible in trim and
without the trimming control being moved throughout the maneuver;
    (c) At an approach gradient equal to the steepest used in the
landing distance demonstration of CS 23.75;
    (d) With only those power changes, if any, which would be made when
landing normally from an approach at VREF.
VLA.205
    (a) Approach--It must be possible using a favorable combination of
controls, to roll the airplane from a steady 30[deg] banked turn
through an angle of 60[deg], so as to reverse the direction of the turn
within--
    (1) For an airplane of 2,722 kg (6,000 lb) or less maximum weight,
4 seconds from initiation of roll; and
    (2) For an airplane of over 2,722 kg (6,000 lb) maximum weight,
1,000/W + 1,300 but not more than 7 seconds, where W is weight in kg.
(W + 2800/2200 but not more than 7 seconds where W is weight in lb.).
    (b) The requirement of paragraph (a) of this section must be met
when rolling the airplane in each direction in the following
conditions--
    (1) Flaps in the landing position(s);
    (2) Landing gear extended;
    (3) All engines operating at the power for a 3[deg] approach; and
    (4) The airplane trimmed at VREF.
VLA.210
    (a) Landing. The stick force curve must have a stable slope at
speeds between 1.1 VS1 and 1.8 VS1 with--
    (1) Flaps in the landing position;
    (2) Landing gear extended; and
    (3) The airplane trimmed at--
    (i) VREF, or the minimum trim speed if higher, with
power off; and
    (ii) VREF with enough power to maintain a 3[deg] angle
of descent.

Rechargeable Lithium Ion Battery

VLA.215
    The applicant must consider the following safety objectives when
showing compliance with regulations applicable to the rechargeable
lithium ion battery.
    Each rechargeable lithium ion battery installation must:
    (a) Be designed to maintain safe cell temperatures and pressures
under all foreseeable operating conditions to prevent fire and
explosion;
    (b) Be designed to prevent the occurrence of self-sustaining,
uncontrollable increases in temperature or pressure, and automatically
control the charge rate of each cell to protect against adverse
operating conditions, such as cell imbalance, back charging,
overcharging, and overheating;
    (c) Not emit explosive or toxic gases, either in normal operation
or as a result of its failure, that may accumulate in hazardous
quantities within the airplane;
    (d) Meet the requirements of 14 CFR 23.2325(g);
    (e) Not damage surrounding structure or adjacent systems,
equipment, components, or electrical wiring from corrosive or any other
fluids or gases that may escape in such a way as to cause a major or
more-severe failure condition;
    (f) Have provisions to prevent any hazardous effect on airplane
structure or systems caused by the maximum amount of heat it can
generate due to any failure of it or its individual cells;
    (g) Have a failure sensing and warning system to alert the
flightcrew if its failure affects safe operation of the airplane;
    (h) Have a monitoring and warning feature that alerts the
flightcrew when its charge state falls below acceptable levels if its
function is required for safe operation of the airplane;
    (i) Have a means to disconnect from its charging source in the
event of an over-temperature condition, cell failure, or battery
failure.

    Issued in Washington, DC, on August 4, 2023.
Daniel J. Elgas,
Director, Policy and Standards Division, Aircraft Certification
Service.
[FR Doc. 2023-17084 Filed 8-8-23; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: May 7, 2008 (Volume 73, Number 89)]
[Notices]
[Page 25814-25815]
[DOCID:fr07my08-141]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57758; File No. SR-CBOE-2008-44]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Order Granting Accelerated Approval
of Proposed Rule Change, as Modified by Amendment No. 1 Thereto,
Relating to Equity Linked Term Notes

May 1, 2008.
    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 April 15, 2008, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared
substantially by the Exchange. On April 30, 2008, the Exchange
submitted Amendment No. 1 to the proposed rule change. The Commission
is publishing this notice to solicit comments on the proposed rule
change, as amended, from interested persons, and is granting
accelerated approval to the proposed rule change.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend CBOE Rule 31.5(I), which provides
the requirements for the listing and trading of Equity Linked Term
Notes (``ELTNs'') on the Exchange. The text of the proposed rule change
is available at the principal office of the Exchange, the Commission's
Public Reference Room, and http://www.cboe.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, CBOE included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below. CBOE 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
    Rule 19b-4(e)\3\ under the Act provides that the listing and
trading of a new derivative securities product by a self-regulatory
organization shall not be deemed a proposed rule change, pursuant to
paragraph (c)(1) of Rule 19b-4,\4\ if the Commission has approved,
pursuant to section 19(b) of the Act,\5\ the self-regulatory
organization's trading rules, procedures, and listing standards for the
product class that would include the new derivative securities product,
and the self-regulatory organization has a surveillance program for the
product class. The Exchange proposes to amend CBOE Rule 31.5(I), which
sets forth CBOE's listing standards for ELTNs, to clarify that the
listing and trading of ELTNs on CBOE, including the trading of ELTNs on
CBOE pursuant to unlisted trading privileges, is subject to Rule 19b-
4(e) under the Act.
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(e).
    \4\ 17 CFR 240.19b-4(c)(1).
    \5\ 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

2. Statutory Basis
    Because this proposal clarifies that the listing and trading of
ELTNs on the Exchange is subject to Rule 19b-4(e) under the Act,\6\ the
Exchange believes that the proposal is consistent with the Act and the
rules and regulations thereunder and, in particular, the requirements
of Section 6(b) of the Act.\7\ Specifically, the Exchange believes that
the proposal is consistent with the Section 6(b)(5) \8\ requirements
that the rules of an exchange be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \6\ 17 CFR 240.19b-4(e).
    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not

necessary or appropriate in furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the
proposed rule change.

III. 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2008-44 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2008-44. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; 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-CBOE-2008-44 and should be
submitted on or before May 28, 2008.

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

    After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\9\ In particular, the Commission finds that the proposed rule
change is consistent with section 6(b)(5) of the Act,\10\ which
requires that the rules of an exchange be designed, among other things,
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
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    \9\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Commission finds good cause for approving this proposal before
the 30th day after the publication of notice thereof in the Federal
Register. The proposal seeks to clarify that the Exchange's listing and
trading of ELTNs is subject to Rule 19b-4(e) under the Act. Therefore,
the Commission does not believe that the Exchange's proposal raises any
novel regulatory issues. The Commission believes that accelerating
approval of this proposal would ensure that the Exchange's rules
clearly reflect the standards for listing and trading of ELTNs and
conform the rules to those of other Exchanges without undue delay.\11\
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    \11\ See e.g., International Securities Exchange Rule 2130 and
NYSE Arca Rule 5.2(j)(2).
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V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\12\ that the proposed rule change, as amended (SR-CBOE-2008-44),
be, and it hereby is, approved on an accelerated basis.
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    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-10071 Filed 5-6-08; 8:45 am]

BILLING CODE 8010-01-P