Sec.   91.147...............             694               3           2,082          22,208            1.98
                                 -------------------------------------------------------------------------------
        Total...................           2,666              NA           7,998          85,312            7.59
SMS records:
    Part 21.....................              65               3             195           1,560            0.14
    Part 135....................           1,907               3           5,721          45,768            4.07
    Sec.   91.147...............             694               3           2,082          16,656            1.48
                                 -------------------------------------------------------------------------------
        Total...................           2,666              NA     7,99822,791          63,984            5.69
----------------------------------------------------------------------------------------------------------------
NA = not applicable.
\1\ Frequency over three-year period.
\2\ Calculated as number of respondents x hours per respondent.
\3\ Calculated as burden hours x average labor rate including benefits. The FAA used an average wage including
  benefits of $88.97, which is the mean average wage for aerospace engineers ($59.12) divided by the percent of
  total employer costs of employee compensation represented by wages (66%) to account for benefits (34%). Wages
  and benefits information available at: https://www.bls.gov/oes/current/oes172011.htm and https://www.bls.gov/news.release/ecec.t04.htm#ect_table4.f.1.

    Table 10 provides a summary of the implied annual responses and
burden (total divided by three).

                                     Table 10--Summary of Annual Burden \1\
----------------------------------------------------------------------------------------------------------------
                            Category                                Reporting     Recordkeeping     Disclosure
----------------------------------------------------------------------------------------------------------------
System description:
    Number of respondents......................................             911                0               0
    Number of responses per respondent.........................             0.3                0               0
    Time per response (hours)..................................               3                0               0
    Total number of responses..................................             911                0               0
    Total burden (hours).......................................           7,285                0               0
Statement of compliance:
    Number of respondents......................................           2,602                0               0
    Number of responses per respondent.........................               1                0               0
    Time per response (hours)..................................            10.7                0               0
    Total number of responses..................................           2,602                0               0
    Total burden (hours).......................................          27,755                0               0
Implementation plan:
    Number of respondents......................................              65                0               0
    Number of responses per respondent.........................               1                0               0
    Time per response (hours)..................................            10.7                0               0
    Total number of responses..................................              65                0               0
    Total burden (hours).......................................             693                0               0
Safety policy:
    Number of respondents......................................               0              889               0
    Number of responses per respondent.........................               0              0.3               0
    Time per response (hours)..................................               0              1.3               0
    Total number of responses..................................               0              889               0
    Total burden (hours).......................................               0            3,555               0

Summary of employee reports:
    Number of respondents......................................              65                0               0
    Number of responses per respondent.........................               2                0               0
    Time per response (hours)..................................               4                0               0
    Total number of responses..................................             130                0               0
    Total burden (hours).......................................             520                0               0
Notification of hazards:
    Number of respondents......................................           2,732                0               0
    Number of responses per respondent.........................               1                0               0
    Time per response (hours)..................................               8                0               0
    Total number of responses..................................           2,732                0               0
    Total burden (hours).......................................          21,856                0               0
SMS documentation:
    Number of respondents......................................               0            2,666               0
    Number of responses per respondent.........................               0                1               0
    Time per response (hours)..................................               0             10.7               0
    Total number of responses..................................               0            2,666               0
    Total burden (hours).......................................               0           28,437               0
SMS records:
    Number of respondents......................................               0            2,666               0
    Number of responses per respondent.........................               0                1               0
    Time per response (hours)..................................               0                8               0
    Total number of responses..................................               0            2,666               0
        Total burden (hours)...................................               0           21,328               0
----------------------------------------------------------------------------------------------------------------

    The agency is soliciting comments to--
    (a) Evaluate whether the proposed information requirement is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
    (b) Evaluate the accuracy of the agency's estimate of the burden;
    (c) Enhance the quality, utility, and clarity of the information to
be collected; and
    (d) Minimize the burden of collecting information on those who are
to respond, including by using appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology.
    Individuals and organizations may send comments on the information
collection requirement to the address listed in the ADDRESSES section
at the beginning of this preamble by March 13, 2023. Comments also
should be submitted to the Office of Management and Budget, Office of
Information and Regulatory Affairs, Attention: Desk Officer for FAA,
New Executive Building, Room 10202, 725 17th Street NW, Washington, DC
20053.

F. International Compatibility

    ICAO Annex 19 establishes an SMS Framework for managing aviation
safety risk, as well as identifies the types of organizations that
should implement an SMS. This rulemaking would move the United States
closer to harmonization with ICAO Annex 19. The proposed rule would
align with Annex 19 by requiring the following service providers to
implement SMS: (1) commercial operators of airplanes or helicopters,
and (2) certain organizations responsible for the design or manufacture
of products. The FAA has already implemented SMS across the FAA's Air
Traffic Organization.\79\ Additionally, the FAA is proposing SMS
implementation for certain airports through a separate rulemaking
effort. Both of these efforts bring us closer to alignment with ICAO
Annex 19 because Annex 19 also includes air traffic service providers
and airports.
---------------------------------------------------------------------------

    \79\ More information regarding the Air Traffic Organization's
SMS is available at: https://www.faa.gov/about/initiatives/sms/specifics_by_aviation_industry_type/air_traffic.
---------------------------------------------------------------------------

    When part 5 was originally constructed, it was based on the SMS
framework in ICAO Annex 19. Part 5 currently also includes requirements
for recordkeeping, which are not part of the ICAO's SMS framework.
However, recordkeeping requirements facilitate FAA's oversight
functions, and they assist the person implementing SMS in demonstrating
compliance with the regulations. In addition, the proposed rule would
require the use of a system description and the communication of
information regarding safety hazards. While these requirements are not
in the ICAO's SMS framework, the FAA believes that they are beneficial
to the persons implementing SMS and consistent with ICAO's intent as
ICAO notes in Annex 19 that other organizations that interface with a
product or service provider can make a significant contribution to the
safety of its products or services.
1. Air Carriers and Operators
    The ICAO SMS requirements for commercial operators are contained in
Annex 19, but Annex 6 defines the scope of the requirements. Part I of
Annex 6 covers international commercial operations in airplanes. This
part of Annex 6 makes no distinction in its requirements on the basis
of an organization's size. The Annex applies to all commercial air
transportation operations in airplanes. In the United States, this
includes operators certificated under both part 121 and part 135. Part
III of Annex 6 covers commercial air transportation operators of
helicopters. In the United States, these operations are conducted under
part 135. Annex 6, part I addresses international flight operations; in
the United States, these international flights are operated under
either part 121 or part 135. The FAA currently requires part 121
operators to implement and maintain an SMS, and this proposed rule
would extend the requirement for an SMS to part 135 operators, further
harmonizing the United States with ICAO's SMS requirements.
2. Aircraft Design and Manufacturing
    ICAO Annex 19 requires SMS for organizations responsible for the
type design or manufacture of aircraft, engines, or propellers. This
proposal extends part 5 applicability to holders of

both a TC and a PC for the same product, applicants for a PC where the
applicant is the holder or licensee of the TC, and holders of a TC who
allow other persons to use their TC to obtain a PC. This proposal would
bring the United States into closer harmonization with the ICAO Annex
19 SMS requirement for certain organizations responsible for design or
manufacturing of products.
3. Development and Implementation of SMS by Foreign Jurisdictions
    Many States have made significant progress in developing,
implementing, and maintaining requirements for SMS, aligned with ICAO's
SMS framework, including certificating authorities in Europe (EASA),
Canada, Brazil, the United Kingdom, Japan, and Australia. Of those
authorities, most have SMS requirements for international commercial
operations, and some have SMS requirements for design and
manufacturing. Most that do not have SMS requirements for design and
manufacturing plan to adopt such requirements in the future. Several
States also have SMS requirements for other operations in the aviation
system: airports, maintenance organizations, training organizations,
international general aviation operations, and for safety data
collection, protection, and exchange.
    Harmonization of requirements, to the extent feasible, is important
to reduce the regulatory burden on those holding certificates or
authorizations from multiple States. The FAA continues to work with
other States to harmonize SMS requirements. The proposed rule aligns
with sections of the ICAO SMS framework and furthers harmonization with
other States requiring SMS. United States-based certificate holders
providing products or services internationally could be limited or
asked to provide duplicative information to other States' approval
authorities to show compliance with in-country SMS requirements. If
adopted as proposed, the rule would reduce the regulatory burden on
those holding certificates or authorizations across multiple States.
4. Other FAA Support for Harmonization and Standards Development
    The FAA is a founding member and active participant in the Safety
Management International Collaboration Group, a group representing 18
international regulatory authorities. The primary purpose of the Safety
Management International Collaboration Group is to promote
international harmonization of SMS regulations, guidance material, and
oversight strategies. The FAA is also an active participant on the ICAO
Safety Management Panel.
    The FAA also participated with the Aerospace Industries Association
to develop an international industry standard for SMS: ``Implementing a
Safety Management System in Design, Manufacturing and Maintenance
Organizations.'' This Standard is intended to enable the aviation
industry to implement an SMS consistent with the ICAO Annex 19 ``Safety
Management'' Second Edition, Appendix 2.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically
excluded from preparation of an environmental assessment or
environmental impact statement under the National Environmental Policy
Act in the absence of extraordinary circumstances. The FAA has
determined this rulemaking action qualifies for the categorical
exclusion identified in paragraph 5-6.6f for regulations and involves
no extraordinary circumstances.

H. Regulations Affecting Intrastate Aviation in Alaska

    Section 1205 of the FAA Reauthorization Act of 1996 (110 Stat.
3213) requires the Administrator, when modifying regulations in 14 CFR
in a manner affecting intrastate aviation in Alaska, to consider the
extent to which Alaska is not served by transportation modes other than
aviation, and to establish appropriate regulatory distinctions. Because
this proposed rule would apply to: (1) any person authorized to conduct
operations under part 135, (2) any person operating under an LOA issued
under Sec.  91.147, and (3) holders of both a TC and a PC for the same
product, as well as applicants for a PC where the applicant is the
holder or licensee of the TC, it could, if adopted, affect intrastate
aviation in Alaska. The use of SMS would improve aviation safety in
Alaska. The FAA analyzed NTSB part 135 accident data from 2015 to 2019
and found that of all part 135 air carrier accidents studied, 43
percent of these accidents occurred in Alaska. Because implementation
of SMS can be scaled to the size and complexity of an organization, SMS
requirements would not be overly burdensome for smaller part 135
operators. The increase in safety benefits to intrastate operations in
Alaska would positively impact air commerce in Alaska with the same
requirements applicable to every organization under part 5. The FAA
specifically requests comments on whether there is justification for
applying the proposed rule differently in intrastate operations in
Alaska.

VIII. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and
criteria of Executive Order 13132, Federalism. The agency has
determined that this action would not have a substantial direct effect
on the States, or the relationship between the Federal Government and
the States, or on the distribution of power and responsibilities among
the various levels of government, and, therefore, would not have
Federalism implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy
Supply, Distribution, or Use

    The FAA analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). The agency has determined that it
would not be a ``significant energy action'' under the executive order
and would not be likely to have a significant adverse effect on the
supply, distribution, or use of energy.

C. Executive Order 13609, International Cooperation

    Executive Order 13609, Promoting International Regulatory
Cooperation, promotes international regulatory cooperation to meet
shared challenges involving health, safety, labor, security,
environmental, and other issues and to reduce, eliminate, or prevent
unnecessary differences in regulatory requirements. The FAA has
analyzed this action under the policies and agency responsibilities of
Executive Order 13609, and has determined that this action may improve
regulatory cooperation by moving FAA requirements for SMS closer to
ICAO Standards and Recommended Practices that other States are adopting
or considering adopting.

IX. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. The agency
also invites comments relating to the economic, environmental, energy,
or federalism impacts that might result from adopting the proposals in
this document. The most helpful comments reference a specific portion
of the proposal, explain

the reason for any recommended change, and include supporting data. To
ensure the docket does not contain duplicate comments, commenters
should send only one copy of written comments, or if comments are filed
electronically, commenters should submit only one time.
    The FAA will file in the docket all comments it receives, as well
as a report summarizing each substantive public contact with FAA
personnel concerning this proposed rulemaking. Before acting on this
proposal, the FAA will consider all comments it receives on or before
the closing date for comments. The FAA will consider comments filed
after the comment period has closed if it is possible to do so without
incurring expense or delay. The agency may change this proposal
considering the comments it receives.

B. Confidential Business Information

    Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the FOIA (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, 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 they will not be placed in the public
docket of this NPRM. Submissions containing Confidential Business
Information should be sent to the person in the FOR FURTHER INFORMATION
CONTACT section of this document. Any commentary that the FAA receives
which is not specifically designated as CBI will be placed in the
public docket for this rulemaking.

C. Request for Comments

    In the preamble under Section V., Discussion of the Proposal, the
FAA requested comments pertaining to specific issues. To facilitate
submission of public comments, the specific requests for comments are
also listed below. When responding to the comments, please identify the
issue by using the question numbers used here:
    (1) The FAA requests comment regarding how SMS might present unique
opportunities or challenges for smaller organizations.
    (2) The FAA is aware that there are 135 operators that use only one
pilot-in-command in their operations, as well as Sec.  91.147 LOA
holders with low flight volume. The FAA seeks supporting information
and data regarding whether this applicability should be limited to a
certain subset of part 135 operators and Sec.  91.147 LOA holders, and
if so, how? If the applicability is limited to a particular subset of
part 135 operators and Sec.  91.147 LOA holders, please provide any
recommendations for alternatives that would achieve the same safety
objectives as SMS for those operators that would not be included under
SMS.
    (3) The FAA considers that there may be safety benefits to applying
SMS to a larger portion of the aviation industry that could lead to
safety improvements in the aviation ecosystem as a whole. The FAA
invites comments as to whether part 5 should apply to all holders of a
TC, PC, supplemental type certificates, technical standard order
authorizations, or parts manufacturer approvals. The FAA requests that
comments specify whether any exceptions should be made in the event
that the FAA extends part 5 to these design and production approval
holders, and what those exceptions should entail. The FAA further
requests information and data related to the safety benefits or impact
of applying part 5 to additional design and production approval holders
beyond the applicability in this proposed rule.
    (4) Under Sec.  5.15(a), the FAA is proposing that any person that
holds a TC for a product who allows another person to use the TC to
manufacture a product under a PC to be required to submit an
implementation plan for FAA approval in a form and manner acceptable to
the Administrator no later than December 27, 2024, and implement the
SMS in accordance with the FAA-approved plan no later than December 27,
2025. These proposed compliance dates are consistent with the proposal
under Sec.  5.11 for holders with a TC and a PC for the same product
issued under part 21. The FAA invites comments about whether the FAA
should extend the compliance timelines for persons who license their TC
to other persons and, if so, what timelines the FAA should establish.
The FAA requests that responsive comments include the commenter's
rationale.
    (5) The FAA seeks comment on whether organizations can share
information about hazards without disclosing proprietary information.
The FAA also seeks comment on whether the holder of the proprietary
information would be in the best position to address the hazard. Please
provide examples of any situations in which the holder of proprietary
information would not be able to share information about a hazard
without disclosing that proprietary information
    (6) The FAA seeks comments regarding the Annual Burden Estimate for
the Paperwork Reduction Act to--
    (a) Evaluate whether the proposed information requirement is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
    (b) Evaluate the accuracy of the agency's estimate of the burden;
    (c) Enhance the quality, utility, and clarity of the information to
be collected; and
    (d) Minimize the burden of collecting information on those who are
to respond, including by using appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology.
    (7) Is there data or other evidence of the effectiveness of SMS in
mitigating accidents and incidents?
    (8) Appendix A of the RIA lists the accidents that inform the RIA
and includes the FAA's assessment of the effectiveness of SMS
mitigating the accident as well as the FAA's rationale:
    (a) Has the FAA accurately estimated the most likely effectiveness
of mitigation of any specific accidents through the proposed rule?
Please provide any data or analysis to support your assessment.
    (b) Does the FAA's rationale accurately assess how the use of an
SMS would potentially mitigate the hazards that caused the accidents?
    (c) What would be a reasonable intervention to mitigate the
specific hazards identified, and what would be a reasonable estimation
for the cost of the intervention or mitigation? Please provide data or
analysis to support your response.
    (d) Are there additional accidents or incidents that SMS could have
meaningfully mitigated?
    (9) The FAA seeks comments and information regarding expanding the
applicability of part 5 in the future. Should the FAA consider a future
rulemaking project to expand the applicability of part 5 to include
repair stations certificated under part 145? Repair stations perform a
wide range of repair and maintenance work on an equally wide range of
aircraft and components. Some repair stations do not perform work on
aircraft used for passenger-carrying operations. Should the FAA
consider applying part 5 to all certificated part 145 repair stations?
Should applicability be limited to a subset of part 145 repair
stations? The

FAA seeks information and supporting data regarding how the
applicability should be limited to a subset (i.e., to which repair
stations should part 5 be applicable).

D. Availability of Rulemaking Documents

    An electronic copy of rulemaking documents may be obtained from the
internet by--
    1. Searching the Federal eRulemaking Portal at www.regulations.gov;
    2. Visiting the FAA's Regulations and Policies web page at
www.faa.gov/regulations_policies/; or
    3. Accessing the Government Printing Office's web page at
www.GovInfo.com.
    Copies may also be obtained by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW, Washington, DC 20591, or by calling<PHONE_NUMBER>.
Commenters must identify the docket or notice number of this
rulemaking.
    All documents the FAA considered in developing this proposed rule,
including economic analyses and technical reports, may be accessed from
the internet through the Federal eRulemaking Portal referenced in item
(1) above.

List of Subjects

14 CFR Part 5

    Air carriers, Aircraft, Airmen, Aviation safety, Reporting and
recordkeeping requirements, Safety, Transportation.

14 CFR Part 21

    Aircraft, Aviation safety, Exports, Imports, Reporting and
recordkeeping requirements.

14 CFR Part 91

    Air carriers, Air taxis, Aircraft, Airmen, Aviation safety, Charter
flights, Reporting and recordkeeping requirements.

14 CFR Part 119

    Administrative practice and procedure, Air carriers, Aircraft,
Aviation safety, Charter flights, Reporting and recordkeeping
requirements.

14 CFR Part 121

    Air carriers, Aircraft, Aviation safety, Charter flights, Reporting
and recordkeeping requirements, Safety, Transportation.

14 CFR Part 135

    Air taxis, Aircraft, Airmen, Aviation safety, Reporting and
recordkeeping requirements.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend chapter I of title 14, Code of Federal
Regulations as follows:

PART 5--SAFETY MANAGEMENT SYSTEMS

0
1. The authority citation for part 5 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40113, 40119,
41706, 44101, 44701-44702, 44705, 44709-44711, 44713, 44716-44717,
44722, 46105; Sec. 102, Pub. L. 116-260, 134 Stat. 2309; Sec 215,
Pub. L. 111-216, 124 Stat. 2366.

0
2. Revise Subpart A to read as follows

Subpart A--General

Sec.
5.1 Applicability.
5.3 Definitions.
5.5 General requirements.
5.7 Requirements for domestic, flag, and supplemental operations.
5.9 Requirements for commuter and on-demand operations or passenger
carrying flights for compensation or hire.
5.11 Requirements for certificate holders with both type
certificates and production certificates.
5.13 Requirements for type certificate holders or licensees applying
for a production certificate for the same product.
5.15 Requirements for type certificate holders who allow another
person to use the type certificate to obtain a production
certificate for the same product.
5.17 Implementation plan.

Subpart A--General

Sec.  5.1   Applicability.

    This part applies to all of the following:
    (a) Any person that holds or applies for a certificate issued under
part 119 of this chapter authorizing the person to conduct operations
under part 121 of this chapter.
    (b) Any person that holds or applies for a certificate issued under
part 119 of this chapter authorizing the person to conduct operations
under part 135 of this chapter.
    (c) Any person that holds or applies for a Letter of Authorization
issued under Sec.  91.147 of this chapter.
    (d) Any person that holds both a type certificate and a production
certificate issued under part 21 of this chapter for the same product.
    (e) Any person who holds a production certificate under part 21 of
this chapter for a product for which the person is a licensee of the
type certificate.
    (f) Any person who applies for a production certificate under part
21 of this chapter for a product for which the person is the holder or
licensee of the type certificate.
    (g) Any person who holds a type certificate under part 21 of this
chapter for a product who allows another person to use the type
certificate to manufacture the same product under a production
certificate.

Sec.  5.3   Definitions.

    Hazard means a condition or an object with the potential to cause
or contribute to an incident or aircraft accident, as defined in 49 CFR
830.2.
    Risk means the composite of predicted severity and likelihood of
the potential effect of a hazard.
    Risk control means a means to reduce or eliminate the effects of
hazards.
    Safety assurance means processes within the SMS that function
systematically to ensure the performance and effectiveness of safety
risk controls and that the organization meets or exceeds its safety
objectives through the collection, analysis, and assessment of
information.
    Safety Management System (SMS) means the formal, top-down,
organization-wide approach to managing safety risk and assuring the
effectiveness of safety risk controls. It includes systematic
procedures, practices, and policies for the management of safety risk.
    Safety objective means a measurable goal or desirable outcome
related to safety.
    Safety performance means realized or actual safety accomplishment
relative to the organization's safety objectives.
    Safety policy means the person's documented commitment to safety,
which defines its safety objectives and the accountabilities and
responsibilities of its employees in regards to safety.
    Safety promotion means a combination of training and communication
of safety information to support the implementation and operation of an
SMS in an organization.
    Safety Risk Management means a process within the SMS composed of
describing the system, identifying the hazards, and analyzing,
assessing, and controlling risk.

Sec.  5.5   General requirements.

    (a) SMS components. An SMS under this part must include, at a
minimum, all of the following components:
    (1) Safety policy that meets the requirements of subpart B of this
part.
    (2) Safety risk management that meets the requirements of subpart C
of this part.

    (3) Safety assurance that meets the requirements of subpart D of
this part.
    (4) Safety promotion that meets the requirements of subpart E of
this part.
    (b) System description. Any person required to have an SMS under
this part must:
    (1) Develop a system description that includes, at a minimum, the
following information about the safety of the aviation products or
services provided by the person:
    (i) The person's aviation-related processes, procedures, and
activities.
    (ii) The function and purpose of the aviation products or services
provided.
    (iii) The operating environment.
    (iv) The personnel, equipment, and facilities necessary for
operation.
    (v) Interfacing persons that contribute to the safety of the
aviation-related products and services provided.
    (2) Revise the system description to reflect changes to the
information in (b)(1) of this section.
    (c) Continuing requirements. Any person required to develop and
implement an SMS under this part must maintain the SMS in accordance
with this part.

Sec.  5.7   Requirements for domestic, flag, and supplemental
operations.

    (a) Any person authorized to conduct operations under part 121 of
this chapter that has an SMS acceptable to the FAA on or before
[EFFECTIVE DATE OF THE FINAL RULE], must:
    (1) Revise its SMS to meet the requirements of this part in effect
on [EFFECTIVE DATE OF THE FINAL RULE].
    (2) Submit the revisions for FAA acceptance in a form and manner
acceptable to the Administrator no later than [12 MONTHS AFTER
EFFECTIVE DATE OF FINAL RULE].
    (3) Make available to the Administrator, upon request, all
necessary information and data that demonstrates that the person has an
SMS that meets the requirements set forth in this part.
    (4) Maintain the SMS as long as the person is authorized to conduct
operations under part 121 of this chapter.
    (b) Any person applying for authorization to conduct operations
under part 121 of this chapter or with such application pending on or
after [EFFECTIVE DATE OF THE FINAL RULE], must:
    (1) Develop and implement an SMS that meets the requirements of
this part.
    (2) Submit a statement of compliance with this part to the FAA in a
form and manner acceptable to the Administrator as part of the
certification process.
    (3) Make available to the Administrator, upon request, all
necessary information and data that demonstrates that the person has an
SMS that meets the requirements set forth in this part.
    (4) Maintain the SMS as long as the person is authorized to conduct
operations under part 121 of this chapter.

Sec.  5.9   Requirements for commuter and on-demand operations or
passenger carrying flights for compensation or hire.

    (a) Any person authorized to conduct operations under part 135 of
this chapter or that holds a Letter of Authorization issued under Sec.
91.147 of this chapter before [EFFECTIVE DATE OF THE FINAL RULE], must:
    (1) Develop and implement an SMS that meets the requirements of
this part no later than [24 MONTHS AFTER EFFECTIVE DATE OF THE FINAL
RULE].
    (2) Submit to the FAA, a statement of compliance with this part in
a form and manner acceptable to the Administrator no later than [24
MONTHS AFTER EFFECTIVE DATE OF THE FINAL RULE].
    (b) Any person applying for authorization to conduct operations
under part 135 of this chapter or a Letter of Authorization under Sec.
91.147 of this chapter, or with such application pending on or after
[EFFECTIVE DATE OF THE FINAL RULE], must:
    (1) Develop and implement an SMS that meets the requirements of
this part.
    (2) Submit a statement of compliance with this part to the FAA in a
form and manner acceptable to the Administrator as part of the
certification or Letter of Authorization process.
    (c) Any person required to develop and implement an SMS under this
section must maintain the SMS as long as the person is authorized to
conduct operations under either part 135 or Sec.  91.147 of this
chapter.
    (d) Any person required to develop and implement an SMS under this
section must make available to the Administrator, upon request, all
necessary information and data that demonstrates that the person has an
SMS that meets the requirements set forth in this part.

Sec.  5.11   Requirements for production certificate holders who are
holders or licensees of a type certificate for the same product.

    Any person that holds a production certificate issued under part 21
of this chapter for a product for which the person is the holder or
licensee of the type certificate on or before [EFFECTIVE DATE OF THE
FINAL RULE], must:
    (a) Develop an SMS that meets the requirements of this part.
    (b) Submit to the FAA, an implementation plan in accordance with
Sec.  5.17 for FAA approval in a form and manner acceptable to the
Administrator no later than December 27, 2024.
    (c) Implement the SMS in accordance with this part no later than
December 27, 2025.
    (d) Make available to the Administrator, upon request, all
necessary information and data that demonstrates that the person has an
SMS that meets the requirements set forth in this part.
    (e) Maintain the SMS as long as the person is both a holder of a
production certificate and a holder or licensee of a type certificate
for the same product.

Sec.  5.13   Requirements for type certificate holders or licensees
applying for a production certificate for the same product.

    (a) This section applies to any holder or licensee of a type
certificate for a product who either:
    (1) Applies for a production certificate for that same product
under part 21 of this chapter on or after [I EFFECTIVE DATE OF THE
FINAL RULE], or
    (2) Has an application for a production certificate for that same
product under part 21 of this chapter pending on [EFFECTIVE DATE OF THE
FINAL RULE].
    (b) Any person who meets paragraph (a) of this section must:
    (1) Develop an SMS that meets the requirements of this part.
    (2) Submit an implementation plan in accordance with Sec.  5.17 for
FAA approval in a form and manner acceptable to the Administrator,
during the certification process.
    (3) Implement the SMS in accordance with this part no later than
one year from the FAA's approval of the person's implementation plan.
    (4) Make available to the Administrator, upon request, all
necessary information and data that demonstrates that the person has an
SMS that meets the requirements set forth in this part.
    (5) Maintain the SMS as long as the person is both a holder of a
production certificate and a holder or licensee of a type certificate
for the same product.

Sec.  5.15   Requirements for type certificate holders who allow
another person to use the type certificate to obtain a production
certificate for the same product.

    (a) This section applies to any person that holds a type
certificate for a product that allows another person to use the type
certificate to manufacture a product under a production certificate.

    (b) Any person that meets paragraph (a) and has a licensing
agreement in accordance with Sec.  21.55 of this chapter on [EFFECTIVE
DATE OF THE FINAL RULE], must:
    (1) Develop an SMS that meets the requirements of this part.
    (2) Submit an implementation plan in accordance with Sec.  5.17 for
FAA approval in a form and manner acceptable to the Administrator no
later than December 27, 2024.
    (3) Implement the SMS in accordance with this part no later than
December 27, 2025.
    (4) Make available to the Administrator, upon request, all
necessary information and data that demonstrates that the person has an
SMS that meets the requirements set forth in this part.
    (5) Maintain the SMS as long as the person continues to meet
paragraph (a) of this section.
    (c) Any person that meets paragraph (a) and enters into a licensing
agreement in accordance with Sec.  21.55 of this chapter after
[EFFECTIVE DATE OF THE FINAL RULE], must:
    (1) Develop an SMS that meets the requirements of this part.
    (2) Submit an implementation plan in accordance with Sec.  5.17 for
FAA approval in a form and manner acceptable to the Administrator when
providing written licensing agreements in accordance with Sec.  21.55
of this chapter.
    (3) Implement the SMS in accordance with this part no later than
one year from the FAA's approval of the person's implementation plan.
    (4) Make available to the Administrator, upon request, all
necessary information and data that demonstrates that the person has an
SMS that meets the requirements set forth in this part.
    (5) Maintain the SMS as long as the person continues to meet
paragraph (a) of this section.

Sec.  5.17   Implementation plan.

    (a) An implementation plan filed under this part must include a
description of the means of compliance (including but not limited to
new or existing policies, processes, or procedures) used to meet the
requirements of this part.
    (b) A person required to submit an implementation plan under this
part must make available to the Administrator, upon request, all
necessary information and data that demonstrates that the SMS has been
or will be implemented in accordance with the implementation plan.
0
3. Amend Sec.  5.21 by:
0
a. Revising the introductory text of paragraph (a), paragraphs (a)(1)
and (a)(2).
0
b. Adding paragraph (a)(7).
0
c. Revising paragraphs (c) and (d).
    The revisions and addition read as follows:

Sec.  5.21   Safety policy.

    (a) Any person required to have an SMS under this part must have a
safety policy that includes at least the following:
    (1) The person's safety objectives.
    (2) The person's commitment to fulfill the safety objectives.
* * * * *
    (7) A code of ethics that is applicable to all employees, including
management personnel and officers, which clarifies that safety is the
organization's highest priority.
* * * * *
    (c) The safety policy must be documented and communicated
throughout the person's organization.
    (d) The safety policy must be regularly reviewed by the accountable
executive to ensure it remains relevant and appropriate to the person.
0
4. Amend Sec.  5.23 by revising the introductory text of paragraph (a),
and revising paragraphs (a)(3) and (b) to read as follows:

Sec.  5.23   Safety accountability and authority.

    (a) Any person required to have an SMS under this part must define
in its safety policy the accountability for safety of the following
individuals:
* * * * *
    (3) Employees relative to the person's safety performance.
    (b) The person must identify the levels of management with the
authority to make decisions regarding safety risk acceptance.
0
5. Revise Sec.  5.25 to read as follows:

Sec.  5.25   Designation and responsibilities of required safety
management personnel.

    (a) Designation of the accountable executive. Any person required
to have an SMS under this part must identify an accountable executive
who, irrespective of other functions, satisfies the following:
    (1) Is the final authority over operations authorized to be
conducted under the person's certificate(s) or Letter(s) of
Authorization.
    (2) Controls the financial resources required for the operations to
be conducted under the person's certificate(s) or Letter(s) of
Authorization.
    (3) Controls the human resources required for the operations
authorized to be conducted under the person's certificate(s) or
Letter(s) of Authorization.
    (4) Retains ultimate responsibility for the safety performance of
the operations conducted under the person's certificate(s) or Letter(s)
of Authorization.
    (b) Responsibilities of the accountable executive. The accountable
executive must accomplish the following:
    (1) Ensure that the SMS is properly implemented and is performing
across all pertinent areas.
    (2) Develop and sign the safety policy.
    (3) Communicate the safety policy throughout the person's
organization.
    (4) Regularly review the safety policy to ensure it remains
relevant and appropriate to the person.
    (5) Regularly review the safety performance and direct actions
necessary to address substandard safety performance in accordance with
Sec.  5.75.
    (c) Designation of management personnel. The accountable executive
must designate sufficient management personnel who, on behalf of the
accountable executive, are responsible for the following:
    (1) Coordinate implementation, maintenance, and integration of the
SMS throughout the person's organization.
    (2) Facilitate hazard identification and safety risk analysis.
    (3) Monitor the effectiveness of safety risk controls.
    (4) Ensure safety promotion throughout the person's organization as
required in subpart E of this part.
    (5) Regularly report to the accountable executive on the
performance of the SMS and on any need for improvement.
0
6. Revise Sec.  5.27 to read as follows:

Sec.  5.27   Coordination of emergency response planning.

    Where emergency response procedures are necessary, any person
required to have an SMS under this part must develop, and the
accountable executive must approve as part of the safety policy, an
emergency response plan that addresses at least the following:
    (a) Delegation of emergency authority throughout the person's
organization.
    (b) Assignment of employee responsibilities during the emergency.
    (c) Coordination of the emergency response plans with the emergency
response plans of other organizations it must interface with during the
provision of its services.
0
7. Revise the introductory text of Sec.  5.51 to read as follows:

Sec.  5.51   Applicability.

    Any person required to have an SMS under this part must apply
safety risk management to the following:
* * * * *
0
8. Amend Sec.  5.53 by:
0
a. Revising paragraph (a).
0
b. Adding paragraph (b)(5).
0
c. Revising paragraph (c).
    The revisions and addition read as follows:

Sec.  5.53   System analysis and hazard identification.

    (a) When applying safety risk management, any person required to
have an SMS under this part must analyze the systems identified in
Sec.  5.51. Those system analyses must be used to identify hazards
under paragraph (c) of this section, and in developing and implementing
risk controls related to the system under Sec.  5.55(c).
    (b) * * *
    (5) The interfaces of the system.
    (c) Any person required to have an SMS under this part must develop
and maintain processes to identify hazards within the context of the
system analysis.
0
9. Revise Sec.  5.55 to read as follows:

Sec.  5.55   Safety risk assessment and control.

    Any person required to have an SMS under this part must:
    (a) Develop and maintain processes to analyze safety risk
associated with the hazards identified in Sec.  5.53(c).
    (b) Define a process for conducting risk assessment that allows for
the determination of acceptable safety risk.
    (c) Develop and maintain processes to develop safety risk controls
that are necessary as a result of the safety risk assessment process
under paragraph (b) of this section.
    (d) Evaluate whether the risk will be acceptable with the proposed
safety risk control applied before the safety risk control is
implemented.
0
10. Amend Sec.  5.71 by:
0
a. Revising the introductory text of paragraph (a).
0
b. Revising paragraphs (a)(6), (a)(7), and (b).
0
c. Adding paragraph (c).
    The revisions and addition read as follows:

Sec.  5.71   Safety performance monitoring and measurement.

    (a) Any person required to have an SMS under this part must develop
and maintain processes and systems to acquire data with respect to its
products and services to monitor the safety performance of the
organization. These processes and systems must include, at a minimum,
the following:
* * * * *
    (6) Investigations of reports regarding potential non-compliance
with regulatory standards or other safety risk controls established by
the person through the safety risk management process established in
subpart C of this part.
    (7) A confidential employee reporting system in which employees can
report hazards, issues, concerns, occurrences, incidents, as well as
propose solutions and safety improvements, without concern of reprisal
for reporting.
    (b) Any person required to have an SMS under this part must develop
and maintain processes that analyze the data acquired through the
processes and systems identified under paragraph (a) of this section
and any other relevant data with respect to its products and services.
    (c) Any person that holds both a type certificate and a production
certificate issued under part 21 of this chapter for the same product
must submit a summary of the confidential employee reports received
under paragraph (a)(7) of this section to the Administrator once every
6 months.
0
11. Amend Sec.  5.73 by revising the introductory text of paragraph
(a), and revising paragraphs (a)(1) and (b) to read as follows:

Sec.  5.73   Safety performance assessment.

    (a) Any person required to have an SMS under this part must conduct
assessments of its safety performance against its safety objectives,
which include reviews by the accountable executive, to:
    (1) Ensure compliance with the safety risk controls established by
the person.
* * * * *
    (b) Upon completion of the assessment, if ineffective controls or
new hazards are identified under paragraphs (a)(2) through (5) of this
section, the person must use the safety risk management process
described in subpart C of this part.
0
12. Revise Sec.  5.75 to read as follows:

Sec.  5.75   Continuous improvement.

    Any person required to have an SMS under this part must establish
and implement processes to correct safety performance deficiencies
identified in the assessments conducted under Sec.  5.73.
0
13. Revise Sec.  5.91 to read as follows:

Sec.  5.91   Competencies and training.

    Any person required to have an SMS under this part must provide
training to each individual identified in Sec.  5.23 to ensure the
individuals attain and maintain the competencies necessary to perform
their duties relevant to the operation and performance of the SMS.
0
14. Amend Sec.  5.93 by revising the introductory text to read as
follows:

Sec.  5.93   Safety communication.

    Any person required to have an SMS under this part must develop and
maintain a means for communicating safety information that, at a
minimum:
* * * * *
0
15. Add Sec.  5.94 to read as follows:

Sec.  5.94   Notification of hazards to interfacing persons.

    (a) If a person required to have an SMS under this part identifies
a hazard in the operating environment, the person must provide notice
of the hazard to the interfacing person or persons identified in the
system description maintained under Sec.  5.5(b) who, to the best of
their knowledge, could address the hazard or mitigate the risk.
    (b) Any person required to have an SMS under this part must develop
and maintain procedures for reporting and receiving hazard information
in accordance with subsection (a).
0
16. Amend Sec.  5.95 by revising the introductory text and adding
paragraph (c) to read as follows:

Sec.  5.95   SMS documentation.

    Any person required to have an SMS under this part must develop and
maintain the following SMS documentation:
* * * * *
    (c) System description.
0
17. Revise Sec.  5.97 to read as follows:

Sec.  5.97   SMS records.

    Any person required to have an SMS under this part must:
    (a) Maintain records of outputs of safety risk management processes
as described in subpart C of this part. Such records must be retained
for as long as the control remains relevant to the operation.
    (b) Maintain records of outputs of safety assurance processes as
described in subpart D of this part. Such records must be retained for
a minimum of 5 years.
    (c) Maintain a record of all training provided under Sec.  5.91 for
each individual. Such records must be retained for as long as the
individual is employed by the person.
    (d) Retain records of all communications provided under Sec.  5.93
or Sec.  5.94 for a minimum of 24 consecutive calendar months.

PART 21--CERTIFICATION PROCEDURES FOR PRODUCTS AND ARTICLES

0
18. The authority citation for part 21 is revised to read as follows:

    Authority:  42 U.S.C. 7572; 49 U.S.C. 106(f), 106(g), 40105,
40113, 44701-44702, 44704, 44707, 44709, 44711, 44713, 44715, 45303;
Pub. L. 116-260; 134 Stat. 2309.

0
19. Amend Sec.  21.55 to read as follows:

Sec.  21.55  Responsibility of type certificate holders that provide
written licensing agreements.

    A type certificate holder who allows a person to use the type
certificate to manufacture a new aircraft, aircraft engine, or
propeller must meet the applicable requirements of part 5 of this
chapter and provide that person with a written licensing agreement
acceptable to the FAA.
0
20. Amend Sec.  21.135 by adding paragraph (c) to read as follows:

Sec.  21.135  Organization.

* * * * *
    (c) Each applicant for or holder of a production certificate,
except those based only on a supplemental type certificate or on the
rights to the benefits of a supplemental type certificate under a
licensing agreement, must meet the applicable requirements of part 5 of
this chapter.
0
21. Amend Sec.  21.147 by revising paragraph (b) to read as follows:

Sec.  21.147  Amendment of production certificates.

* * * * *
    (b) An applicant for an amendment to a production certificate to
add a type certificate or model, or both, must comply with Sec. Sec.
21.135(c), 21.137, 21.138, and 21.150.
* * * * *

PART 91--GENERAL OPERATING AND FLIGHT RULES

0
22. The authority citation for part 91 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40103, 40105,
40113, 40120, 44101, 44111, 44701, 44704, 44709, 44711, 44712,
44715, 44716, 44717, 44722, 46306, 46315, 46316, 46504, 46506-46507,
47122, 47508, 47528-47531, 47534, Pub. L. 114-190, 130 Stat. 615 (49
U.S.C. 44703 note); articles 12 and 29 of the Convention on
International Civil Aviation (61 Stat. 1180), (126 Stat. 11).

0
23. Revise Sec.  91.147 to read as follows:

Sec.  91.147   Passenger carrying flights for compensation or hire.

    (a) Definitions. For the purposes of this section Operator means
any person conducting nonstop passenger-carrying flights in an airplane
or helicopter for compensation or hire in accordance with Sec. Sec.
119.1(e)(2), 135.1(a)(5), or 121.1(d), of this chapter that begin and
end at the same airport and are conducted within a 25-statute mile
radius of that airport.
    (b) General requirements. An Operator conducting passenger-carrying
flights for compensation or hire must meet the following requirements
unless all flights are conducted under Sec.  91.146. The Operator must:
    (1) Comply with the safety provisions of part 136, subpart A of
this chapter.
    (2) Register and implement its drug and alcohol testing programs in
accordance with part 120 of this chapter.
    (3) Comply with the applicable requirements of part 5 of this
chapter.
    (4) Apply for and receive a Letter of Authorization from the
responsible Flight Standards office.
    (c) Letter of Authorization. Each application for a Letter of
Authorization must include the following information:
    (1) Name of Operator, agent, and any d/b/a (doing-business-as)
under which that Operator does business.
    (2) Principal business address and mailing address.
    (3) Principal place of business (if different from business
address).
    (4) Name of person responsible for management of the business.
    (5) Name of person responsible for aircraft maintenance.
    (6) Type of aircraft, registration number(s), and make/model/
series.
    (7) Antidrug and Alcohol Misuse Prevention Program registration.
    (8) The statement of compliance required under part 5 of this
chapter.
    (d) Compliance. The Operator must comply with the provisions of the
Letter of Authorization received.

PART 119--CERTIFICATION: AIR CARRIERS AND COMMERCIAL OPERATORS

0
24. The authority citation for part 119 continues to read as follows:

    Authority: Pub. L. 111-216, sec. 215 (August 1, 2010); 49 U.S.C.
106(f), 106(g), 1153, 40101, 40102, 40103, 40113, 44105, 44106,
44111, 44701-44717, 44722, 44901, 44903, 44904, 44906, 44912, 44914,
44936, 44938, 46103, 46105.

0
25. Revise Sec.  119.8 to read as follows:

Sec.  119.8   Safety Management Systems.

    No certificate holder authorized to conduct operations under part
121 or 135 of this chapter may operate an aircraft under that
certificate unless the certificate holder complies with the applicable
requirements of part 5 of this chapter.

    Issued under authority provided by 49 U.S.C. 106(f), 44701(a),
and 44703 in Washington, DC.
Warren S. Randolph,
Deputy Executive Director, Office of Accident Investigation and
Prevention. Federal Aviation Administration.
[FR Doc. 2022-28583 Filed 1-10-23; 11:15 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 78 (Tuesday, April 25, 2017)]
[Notices]
[Pages 19131-19136]
[FR Doc No: 2017-08283]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80485; File Nos. SR-DTC-2017-005; SR-FICC-2017-009; SR-
NSCC-2017-006]

Self-Regulatory Organizations; The Depository Trust Company;
Fixed Income Clearing Corporation; National Securities Clearing
Corporation; Notice of Filings of Proposed Rule Changes To Adopt the
Clearing Agency Stress Testing Framework (Market Risk)

April 19, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, as amended (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on April 7, 2017, The Depository Trust Company
(``DTC''), Fixed Income Clearing Corporation (``FICC''), and National
Securities Clearing Corporation (``NSCC,'' and together with DTC and
FICC, the ``Clearing Agencies'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule changes as described in
Items I and II below, which Items have been prepared primarily by the
Clearing Agencies. The Commission is publishing this notice to solicit
comments on the proposed rule changes from interested persons.
---------------------------------------------------------------------------

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

I. Clearing Agencies' Statements of the Terms of Substance of the
Proposed Rule Changes

    The proposed rule changes would adopt the Clearing Agency Stress
Testing Framework (Market Risk) (``Framework'') of the Clearing
Agencies, described below. The Framework would apply to both of FICC's
divisions, the Government Securities Division (``GSD'') and the
Mortgage-Backed Securities Division (``MBSD''). The Framework would be
maintained by the Clearing Agencies in compliance with Rule 17Ad-
22(e)(4)(i), (iii) through (vii), under the Act, as described below.\3\
---------------------------------------------------------------------------

    \3\ 17 CFR 240.17Ad-22(e)(4)(i), and (iii) through (vii). The
Commission adopted amendments to Rule 17Ad-22, including the
addition of new section 17Ad-22(e), on September 28, 2016. See
Securities Exchange Act Release No. 78961 (September 28, 2016), 81
FR 70786 (October 13, 2016) (S7-03-14). Each of the Clearing
Agencies is a ``covered clearing agency'' as defined in Rule 17Ad-
22(a)(5), and must comply with new section (e) of Rule 17Ad-22 by
April 11, 2017.

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

    Although the Clearing Agencies would consider the Framework to be a
rule, the proposed rule changes do not require any changes to the
Rules, By-Laws and Organizational Certificate of DTC (``DTC Rules''),
the Rulebook of GSD (``GSD Rules''), the Clearing Rules of MBSD (``MBSD
Rules''), or the Rules & Procedures of NSCC (``NSCC Rules''), as the
Framework would be a standalone document.\4\
---------------------------------------------------------------------------

    \4\ Capitalized terms not defined herein are defined in the DTC
Rules, GSD Rules, MBSD Rules, or NSCC Rules, as applicable,
available at http://dtcc.com/legal/rules-and-procedures.
---------------------------------------------------------------------------

II. Clearing Agencies' Statements of the Purpose of, and Statutory
Basis for, the Proposed Rule Changes

    In their filings with the Commission, the Clearing Agencies
included statements concerning the purpose of and basis for the
proposed rule changes and discussed any comments they received on the
proposed rule changes. The text of these statements may be examined at
the places specified in Item IV below. The Clearing Agencies have
prepared summaries, set forth in sections A, B, and C below, of the
most significant aspects of such statements.

(A) Clearing Agencies' Statements of the Purpose of, and Statutory
Basis for, the Proposed Rule Changes

1. Purpose
    The Clearing Agencies are proposing to adopt the Framework, which
would set forth the manner in which each Clearing Agency effectively
identifies, measures, monitors and manages its credit exposures to
Members \5\ and those arising from its payment, clearing, and settling
processes, as applicable. In general, the Framework would describe the
stress testing practices adopted by the Clearing Agencies that are
designed to ensure the sufficiency of each Clearing Agency's total
prefunded financial resources, as described in greater detail below.
The Framework would describe (i) the sources of each Clearing Agency's
total prefunded financial resources; (ii) the Clearing Agencies' stress
testing methodologies; (iii) the Clearing Agencies' stress testing
governance and execution processes; and (iv) the Clearing Agencies'
model validation practices. The Framework would address stress testing
of each Clearing Agency's total prefunded financial resources, and
would not address assessments for additional contributions or other
resources that are not prefunded and may be available to the Clearing
Agencies. The Framework would be owned and managed by the Data and
Portfolio Analytics group within the Quantitative Risk Management
department.\6\
---------------------------------------------------------------------------

    \5\ FICC and NSCC refer to their participants as ``Members,''
while DTC refers to its participants as ``Participants.'' These
terms are defined in the rules of each of the Clearing Agencies.
Supra note 4. In this filing ``Members'' refers to both the Members
of FICC and NSCC and the Participants of DTC.
    \6\ The parent company of the Clearing Agencies is The
Depository Trust & Clearing Corporation (``DTCC''). DTCC operates on
a shared services model with respect to the Clearing Agencies. Most
corporate functions are established and managed on an enterprise-
wide basis pursuant to intercompany agreements under which it is
generally DTCC that provides a relevant service to a Clearing
Agency.
---------------------------------------------------------------------------

    The Framework would first outline the regulatory requirements that
apply to each Clearing Agency with respect to credit risk management,
and then would describe how the Clearing Agencies address those
requirements. The Framework would describe the credit risk management
strategy of each of the Clearing Agencies,\7\ which is to maintain
sufficient prefunded financial resources to cover fully its credit
exposures to each Member with a high degree of confidence, and further,
to maintain additional prefunded financial resources at a minimum to
enable it to cover a wide range of foreseeable stress scenarios that
include, but are not limited to, the default of the affiliated family
(``Affiliated Family'') of Members that would potentially cause the
largest aggregate credit exposure to the Clearing Agency in extreme but
plausible market conditions (``Cover One Requirement'').\8\ Because the
credit risks and prefunded financial resources of the Clearing Agencies
are different in certain respects, the Framework would describe the
prefunded financial resources and related stress testing methodologies
of the Clearing Agencies separately, where applicable.
---------------------------------------------------------------------------

    \7\ Rule 17Ad-22(e)(4) under the Act refers to these risks as
``credit risks.'' 17 CFR 240.17Ad-22(e)(4), supra note 3. Because
the Clearing Agencies refers to these risks as ``market risks,'' the
Framework would use these terms interchangeably.
    \8\ See 17 CFR 240.17Ad-22(e)(4)(iii). Supra note 3.
---------------------------------------------------------------------------

    The Framework would describe the sources of prefunded financial
resources of the Clearing Agencies for purposes of compliance with Rule
17Ad-22(e)(4).\9\ With respect to FICC and NSCC, the Framework would
describe that such prefunded financial resources are their respective
clearing funds, which contain deposits from their Members pursuant to
their respective rules consisting of both cash and eligible securities,
with any eligible securities being subject to a haircut, as provided
for under those rules.\10\ The Framework would describe that such
deposits are calculated for each individual Member pursuant to the GSD
Rules, MBSD Rules, or NSCC Rules, as applicable, and each Member's
deposits would be referred to in the Framework as its ``Required
Deposit.'' \11\ With respect to DTC, the Framework would describe that
its prefunded financial resources are cash deposits to its Participants
Fund, made by its Members pursuant to the DTC Rules.\12\ The Framework
would also describe that DTC may use its risk management control, the
``Collateral Monitor,'' to monitor and assure that the settlement
obligations of each Member are fully collateralized.\13\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.17Ad-22(e)(4). Supra note 3.
    \10\ FICC/GSD Rule 4 (Clearing Fund and Loss Allocation), FICC/
MBSD Rule 4 (Clearing Fund and Loss Allocation), and NSCC Rule 4
(Clearing Fund). Supra note 4.
    \11\ Id.
    \12\ DTC Rule 4 (Participants Fund and Participants Investment).
Supra note 4.
    \13\ ``Collateral Monitor'' is defined in DTC Rule 1, Section 1
(Definitions), and its calculation is further provided for in the
DTC Settlement Service Guide of the DTC Rules. Supra note 4.
---------------------------------------------------------------------------

    The Framework would describe the stress testing methodologies that
are used by the Clearing Agencies to test the sufficiency of their
total prefunded financial resources, described above, against potential
losses, assuming the default of a Member with the largest credit
exposure to a Clearing Agency and that Member's Affiliated Family under
extreme but plausible market conditions. The Framework would state that
the stress testing would be designed to identify potential weaknesses
in the methodologies used to calculate Members' Required Deposits and
to determine collateral haircuts.
    The Framework would describe in detail the three key components of
the development of stress testing methodologies, which include the
following:

    Risk Identification. The Clearing Agencies identify the
principal credit risk drivers that are representative and specific
to each Clearing Agency's clearing and/or collateral portfolio to
determine risk exposures by analyzing the securities and risk
exposures in their Members' clearing and/or collateral portfolios to
identify representative principal market risk drivers and to capture
the risk sensitivity of the clearing and/or collateral portfolios
under stressed market conditions.
    Scenario Development. The Clearing Agencies construct
comprehensive and relevant sets of extreme but plausible historical
and hypothetical stress scenarios for the identified risk drivers.
The Framework would describe how the Clearing Agencies develop and
select both historical and hypothetical scenarios that reflect

stressed market conditions. Historical scenarios are based on
stressed market conditions that occurred on specific dates in the
past. Hypothetical stress scenarios are theoretical market
conditions that could conceivably occur.
    Risk Measurement and Aggregation. The Clearing Agencies
calculate the risk metrics of each Clearing Agency's actual
portfolio to estimate the profits and losses (``P&L'') of close out
over a suitable stressed period of risk, deficiencies, and coverage
ratios. The Framework would describe how the Clearing Agencies
develop P&L estimation methodologies, and how they calculate risk
metrics that are applicable to such methodologies under the chosen
stress testing scenarios. Risk metrics may include, without
limitation, deficiency and coverage ratios. The Clearing Agencies
may use a number of P&L methodologies for stress testing purposes,
including risk sensitivity, index mapping, and actual or approximate
historical shock approaches.

    The Framework would define ``Member stress deficiency'' for each
scenario as, with respect to FICC and NSCC, the stress loss exceeding
the applicable Member's Required Deposits, and for DTC, the shortfall
of a Member's Collateral Monitor. The Framework would also define
``Affiliated Family deficiency'' as the aggregate of all Member stress
deficiencies within the applicable Affiliated Family. Finally, the
Framework would define ``Cover One Ratio'' as the ratio of Affiliated
Family deficiency over the total value of the relevant Clearing
Agency's clearing fund (or, for DTC, the Participants Fund), excluding
the value of the applicable Affiliated Family's Required Deposits. The
Framework would state that the Clearing Agencies calculate Member
stress deficiencies, Affiliated Family deficiencies, and Cover One
Ratios daily.
    The Framework would state that FICC and NSCC consider other
coverage ratios as well, such as comparing Member stress deficiencies
against such Member's known financial resources (e.g., equity capital
base), to keep abreast of potential financial vulnerabilities facing
such Member. Additionally, the Framework would state that DTC also
tests the adequacy of its collateral haircuts by measuring ``Haircut
Deficiency'' as the amount of stress losses exceeding the haircut
applied to collateral securities.
    The Framework would state that the Clearing Agencies also apply
wrong-way risk scenarios to measure both specific and generic wrong-way
risk for each Clearing Agency's Members and Affiliated Families. Such
scenarios reflect the default of a Member's Affiliated Family, and the
potential impacts of that default to all securities in the Affiliated
Family's clearing or collateral portfolios, as well as the potential
general market impacts of that default to other securities. The
Framework would describe the reverse stress testing analyses that are
performed by FICC and NSCC on at least a semi-annual basis. These
analyses provide FICC and NSCC, as central counterparties, another
means for testing the sufficiency of the Clearing Agencies' respective
prefunded financial resources. In conducting reverse stress testing,
FICC and NSCC utilize scenarios of multiple defaults, extreme market
shocks or shocks for other risk factors, which would cause those
Clearing Agencies, as applicable, to exhaust all of their respective
prefunded financial resources.
    The Framework would describe the Clearing Agencies' stress testing
governance and execution processes. Stress testing is conducted daily
for each of the Clearing Agencies, and stress testing risk metrics are
also generated each day. Stress testing results of Cover One Ratios and
Member stress deficiencies of certain Members are monitored against
pre-established thresholds.\14\ Breaches of these pre-established
thresholds are initially subject to more detailed studies to identify
any potential impact to the applicable Clearing Agencies' Cover One
Requirement. The Framework would describe that, to the extent such
studies indicate a potential impact to a Clearing Agency's Cover One
Requirement, the threshold breach would be escalated internally and
analyzed to determine if either there is a need to adjust the stress
testing methodology, or if the threshold breach indicates an issue with
a particular Member. Based on these analyses, the Clearing Agencies
determine the appropriate course of action, which could include options
available under their respective rules.
---------------------------------------------------------------------------

    \14\ Risk threshold levels are chosen to assist each Clearing
Agency in achieving a high degree of confidence that its Cover One
Requirement is met daily.
---------------------------------------------------------------------------

    The Framework would describe that the Clearing Agencies conduct
comprehensive analyses of daily stress testing results, the existing
scenario sets (including any changes to such scenarios for the period
since the last review), and the performance of the methodologies along
with key underlying parameters and assumptions. These analyses are
performed at least monthly and are conducted to assess whether each
Clearing Agency's stress testing components are appropriate for
determining the sufficiency of its prefunded financial resources in
light of current and evolving market conditions. The Framework would
state that such analyses may occur more frequently than monthly if, for
example, the products cleared or markets served by a Clearing Agency
display high volatility or become less liquid, or when the size or
concentration of positions held by the applicable Clearing Agency's
Members increases significantly.
    The Framework would state that the results of these analyses are
reviewed monthly by the DTCC Enterprise Stress Testing Council. The
Framework would also state that daily stress testing results are
summarized and reported monthly to the DTCC Risk Management Committee.
Finally, the Framework would state that stress testing methodologies
and related models are subject to independent model validation on at
least an annual basis.
2. Statutory Basis
    The Clearing Agencies believe that the proposed rule changes are
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a registered clearing agency. In
particular, the Clearing Agencies believe that the Framework is
consistent with Section 17A(b)(3)(F) of the Act,\15\ as well as Rule
17Ad-22(b)(3),\16\ and the subsections cited below of Rule 17Ad-
22(e)(4),\17\ each promulgated under the Act, for the reasons described
below.
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    \15\ 15 U.S.C. 78q-1(b)(3)(F).
    \16\ 17 CFR 240.17Ad-22(b)(3).
    \17\ 17 CFR 240.17Ad-22(e)(4). Supra note 3.
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    Section 17A(b)(3)(F) of the Act requires, in part, that the rules
of a registered clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions, and to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible.\18\ As described in greater detail above, the Framework
would describe how the Clearing Agencies have developed and carry out a
credit risk management strategy to maintain sufficient prefunded
financial resources to cover fully its credit exposures to each Member
with a high degree of confidence, and further, to maintain additional
prefunded financial resources at a minimum to enable it to cover a wide
range of foreseeable stress scenarios that include, but are not limited
to the Cover One Requirement. As such, the credit risk management
strategy of the Clearing Agencies addresses their credit exposures and

allows them to continue the prompt and accurate clearance and
settlement of securities and can continue to assure the safeguarding of
securities and funds which are in their custody or control or for which
they are responsible notwithstanding those risks. Therefore, the
Clearing Agencies believe the Framework, which describes how the
Clearing Agencies carry out this strategy, is consistent with the
requirements of Section 17A(b)(3)(F) of the Act.\19\
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78q-1(b)(3)(F).
    \19\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(b)(3) under the Act requires, in part, that a
registered clearing agency that performs central counterparty services
establish, implement, maintain and enforce written policies and
procedures reasonably designed to, among other things, maintain
sufficient financial resources to withstand, at a minimum, a default by
the participant family to which it has the largest exposure in extreme
but plausible market conditions.\20\ As described above, the Framework
would describe how both FICC and NSCC have developed and carry out a
credit risk management strategy to maintain sufficient prefunded
financial resources to cover fully its credit exposures to each Member
with a high degree of confidence, and further, to maintain additional
prefunded financial resources at a minimum to enable it to cover a wide
range of foreseeable stress scenarios that include, but are not limited
to the Cover One Requirement. By carrying out their credit risk
management strategy and conducting this daily stress testing to test
the sufficiency of their prefunded financial resources, FICC and NSCC
believe the Framework is consistent with Rule 17Ad-22(b)(3).\21\
---------------------------------------------------------------------------

    \20\ 17 CFR 240.17Ad-22(b)(3).
    \21\ Id.
---------------------------------------------------------------------------

    The proposed rule changes are also designed to be consistent with
Rule 17Ad-22(e)(4) under the Act, which requires, in part, that each
covered clearing agency establish, implement, maintain and enforce
written policies and procedures reasonably designed to effectively
identify, measure, monitor, and manage its credit exposures to
participants and those arising from its payment, clearing, and
settlement processes.\22\ The Clearing Agencies believe the Framework
is designed to meet the requirements of the following subsections of
Rule 17Ad-22(e)(4),\23\ cited below, for the reasons described below.
---------------------------------------------------------------------------

    \22\ 17 CFR 240.17Ad-22(e)(4)(i), and (iii) through (vii). Supra
note 3.
    \23\ 17 CFR 240.17Ad-22(e)(4). Supra note 3.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(i) under the Act requires that a covered
clearing agency maintain sufficient financial resources to cover its
credit exposure to each participant fully with a high degree of
confidence.\24\ Rule 17Ad-22(e)(4)(iii) under the Act requires that, to
the extent not already maintained pursuant to Rule 17Ad-22(e)(4)(i)
under the Act, for a covered clearing agency not subject to Rule 17Ad-
22(e)(4)(ii) under the Act, a covered clearing agency maintain
additional financial resources at the minimum to enable it to cover a
wide range of foreseeable stress scenarios that include, but are not
limited to, the default of the participant family that would
potentially cause the largest aggregate credit exposure for the covered
clearing agency in extreme but plausible market conditions.\25\ The
Framework would describe how the Clearing Agencies have developed and
carry out a credit risk management strategy to maintain sufficient
prefunded financial resources to cover fully its credit exposures to
each Member with a high degree of confidence, and further, to maintain
additional prefunded financial resources at a minimum to enable it to
cover a wide range of foreseeable stress scenarios that include, but
are not limited to the Cover One Requirement. The Framework would also
describe how each Clearing Agency tests the sufficiency of its
prefunded resources daily to support compliance with this requirement.
As such, the Clearing Agencies believe the Framework is designed to
meet the requirements of Rule 17Ad-22(e)(4)(i) and (iii) under the
Act.\26\
---------------------------------------------------------------------------

    \24\ 17 CFR 240.17Ad-22(e)(4)(i). Supra note 3.
    \25\ 17 CFR 240.17Ad-22(e)(4)(iii). Supra note 3.
    \26\ 17 CFR 240.17Ad-22(e)(4)(i) and (iii). Supra note 3.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(iv) under the Act requires that a covered
clearing agency include prefunded financial resources, exclusive of
assessments for additional guaranty fund contributions or other
resources that are not prefunded, when calculating financial resources
available to meet the standards under Rule 17Ad-22(e)(4)(i) through
(iii) under the Act, as applicable.\27\ The Framework would identify
the sources of prefunded resources of each Clearing Agency for purposes
of meeting its requirements under Rule 17Ad-22(e)(4)(iii), and further
would state that the stress testing used to test the sufficiency of
those resources do not test other resources that are not prefunded.
Therefore, the Clearing Agencies believe the Framework is consistent
with Rule 17Ad-22(e)(4)(iv) under the Act.\28\
---------------------------------------------------------------------------

    \27\ 17 CFR 240.17Ad-22(e)(4)(iv). Supra note 3.
    \28\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(v) under the Act requires that a covered
clearing agency maintain the financial resources under Rule 17Ad-
22(e)(4)(ii) and (iii) under the Act, in combined or separately
maintained clearing or guaranty funds.\29\ The Framework would identify
the sources of prefunded resources of each Clearing Agency for purposes
of meeting its requirements under Rule 17Ad-22(e)(4)(iii) as their
Members' deposits to, with respect to NSCC and FICC, their respective
clearing funds, and, with respect to DTC, deposits to its Participants
Fund. Therefore, the Clearing Agencies believe the Framework is
consistent with Rule 17Ad-22(e)(v) under the Act.\30\
---------------------------------------------------------------------------

    \29\ 17 CFR 240.17Ad-22(e)(4)(v). Supra note 3.
    \30\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(vi)(A) under the Act requires that a covered
clearing agency conduct stress testing of its total financial resources
once each day using standard predetermined parameters and
assumptions.\31\ The Framework would describe how the Clearing Agencies
conduct stress tests on a daily basis, and would describe how the
Clearing Agencies develop the stress testing methodologies for these
tests. Specifically, the Framework would describe how the stress
testing methodologies are developed through risk identification,
scenario development, and risk measurement and aggregation. The
Framework would also state that the stress testing methodologies are
reviewed and analyzed monthly to determine if the components continue
to be appropriate for determining sufficiency of the Clearing Agencies'
prefunded financial resources. Therefore, the Clearing Agencies believe
the Framework is consistent with Rule 17Ad-22(e)(4)(vi)(A) under the
Act.\32\
---------------------------------------------------------------------------

    \31\ 17 CFR 240.17Ad-22(e)(4)(vi)(A). Supra note 3.
    \32\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(vi)(B) under the Act requires that a covered
clearing agency conduct a comprehensive analysis on at least a monthly
basis of the existing stress testing scenarios, models, and underlying
parameters and assumptions, and consider modifications to ensure they
are appropriate for determining the covered clearing agency's required
level of default protection in light of current and evolving market
conditions.\33\ Rule 17Ad-22(e)(4)(vi)(C) under the Act requires that a
covered clearing agency

conduct a comprehensive analysis of stress testing scenarios, models,
and underlying parameters and assumptions more frequently than monthly
when the products cleared or markets served display high volatility or
become less liquid, or when the size or concentration of positions held
by the covered clearing agency's participants increases
significantly.\34\ The Framework would describe that the Clearing
Agencies conduct comprehensive analyses of daily stress testing
results, the existing scenario sets, and the performance of the
methodology along with key underlying parameters and assumptions. The
Framework would also state that these analyses are performed at least
monthly, and may occur more frequently than monthly if, for example,
the products cleared or markets served by a Clearing Agency display
high volatility or become less liquid, or when the size or
concentration of positions held by the applicable Clearing Agency's
Members increases significantly. The Framework would state that these
analyses are designed to assess whether each Clearing Agency's stress
testing components are appropriate for determining the sufficiency of
its prefunded financial resources in light of current and evolving
market conditions. As such, the Clearing Agencies believe the Framework
is consistent with Rule 17Ad-22(e)(4)(vi)(B) and (C) under the Act.\35\
---------------------------------------------------------------------------

    \33\ 17 CFR 240.17Ad-22(e)(4)(vi)(B). Supra note 3.
    \34\ 17 CFR 240.17Ad-22(e)(4)(vi)(C). Supra note 3.
    \35\ 17 CFR 240.17Ad-22(e)(4)(vi)(B) and (C). Supra note 3.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(vi)(D) under the Act requires that a covered
clearing agency report the results of its analyses under Rule 17Ad-
22(e)(4)(vi)(B) and (C) to appropriate decision makers at the covered
clearing agency, including but not limited to, its risk management
committee or board of directors, and use these results to evaluate the
adequacy of and adjust its margin methodology, model parameters, models
used to generate clearing or guaranty fund requirements, and any other
relevant aspects of its credit risk management framework, in supporting
compliance with the minimum financial resources requirements set forth
in Rule 17Ad-22(e)(4)(i) through (iii) under the Act.\36\ The Framework
would provide that the results of the analyses described above are
reviewed monthly by the DTCC Enterprise Stress Testing Council. The
Framework would also state that this group would consider these results
to evaluate the adequacy of the stress testing methodologies and would
determine if adjustments to the stress testing methodologies are
appropriate to support the Clearing Agencies' compliance with the
minimum financial resources requirements set forth in Rule 17Ad-
22(e)(4)(i) through (iii) under the Act. Additionally, the Framework
would state that daily stress testing results are summarized and
reported monthly to the DTCC Risk Management Committee. Based on their
review of the information provided, this committee may determine to
inform or further escalate any concerns to the Risk Committees of the
Boards, as they deem necessary. Therefore, the Clearing Agencies
believe that the Framework is consistent with Rule 17Ad-22(e)(vi)(D)
under the Act.\37\
---------------------------------------------------------------------------

    \36\ 17 CFR 240.17Ad-22(e)(4)(vi)(D). Supra note 3.
    \37\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(vii) under the Act requires a covered clearing
agency to perform a model validation for its credit risk models not
less than annually or more frequently as may be contemplated by the
covered clearing agency's risk management framework established
pursuant to Rule 17Ad-22(e)(3) under the Act.\38\ The Framework would
provide that the Clearing Agencies' stress testing methodologies and
models are subject to independent model validation on at least an
annual basis thereafter. Therefore, the Clearing Agencies believe that
the Framework supports compliance with Rule 17Ad-22(e)(4)(vii) under
the Act.\39\
---------------------------------------------------------------------------

    \38\ 17 CFR 240.17Ad-22(e)(4)(vii). Supra note 3.
    \39\ Id.
---------------------------------------------------------------------------

(B) Clearing Agencies' Statements on Burden on Competition

    None of the Clearing Agencies believes that the Framework would
have any impact, or impose any burden, on competition because the
proposed rule changes reflect the existing framework that each of the
Clearing Agencies employ to manage its market risk, and would not
effectuate changes to the Clearing Agencies' stress testing
methodologies, or to the remedial action the Clearing Agencies may take
in response to the results thereof, as they currently apply to Members.

(C) Clearing Agencies' Statements on Comments on the Proposed Rule
Changes Received From Members, Participants, or Others

    The Clearing Agencies have not solicited or received any written
comments relating to this proposal. The Clearing Agencies will notify
the Commission of any written comments received by the Clearing
Agencies.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the clearing agency consents, the Commission will:
    (A) by order approve or disapprove such proposed rule changes, or
    (B) institute proceedings to determine whether the proposed rule
changes should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-DTC-2017-005, SR-FICC-2017-009, or SR-NSCC-2017-006 on
the subject line.

Paper Comments

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

All submissions should refer to File Number SR-DTC-2017-005, SR-FICC-
2017-009, or SR-NSCC-2017-006. One of these file numbers 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 changes that are filed with the
Commission, and all written communications relating to the proposed
rule changes 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 the filing also will be available
for inspection and copying at the principal office of the Clearing
Agencies and on DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). 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-DTC-
2017-005, SR-FICC-2017-009, or SR-NSCC-2017-006 and should be submitted
on or before May 16, 2017.
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    \40\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08283 Filed 4-24-17; 8:45 am]
 BILLING CODE 8011-01-P