[Federal Register Volume 80, Number 206 (Monday, October 26, 2015)]
[Rules and Regulations]
[Pages 65130-65134]
[FR Doc No: 2015-26992]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2015-4208; Directorate Identifier 2015-NM-152-AD;
Amendment 39-18303; AD 2015-21-10]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: We are superseding Airworthiness Directive (AD) 2015-19-03 for
all The Boeing Company Model 737-600, -700, -700C, -800, -900, and -
900ER series airplanes. AD 2015-19-03 required revising the maintenance
or inspection program to include new airworthiness limitations. This AD
continues to require a maintenance or inspection program revision, but
with revised language. This AD was prompted by a determination that
certain language in the airworthiness limitation was not accurate in AD
2015-19-03. We are issuing this AD to detect and correct latent
failures of the fuel shutoff valve to the engine, which could result in
the inability to shut off fuel to the engine and, in case of certain
engine fires, an uncontrollable fire that could lead to wing failure.

DATES: This AD is effective October 28, 2015.
    We must receive any comments on this AD by December 10, 2015.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
4208; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this AD, the regulatory evaluation, any comments received, and
other information. The street address for the Docket Office (phone:
800-647-5527) is in the ADDRESSES section. Comments will be available
in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Rebel Nichols, Aerospace Engineer,
Propulsion Branch, ANM-140S, FAA, Seattle Aircraft Certification
Office, 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425-917-
6509; fax:

425-917-6590; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    On September 7, 2015, we issued AD 2015-19-03, Amendment 39-18266
(80 FR 55527, September 16, 2015), for all The Boeing Company Model
737-600, -700, -700C, -800, -900, and -900ER series airplanes. AD 2015-
19-03 required revising the maintenance or inspection program to
include new airworthiness limitations. AD 2015-19-03 resulted from
reports of latently failed fuel shutoff valves discovered during fuel
filter replacement. We issued AD 2015-19-03 to detect and correct
latent failures of the fuel shutoff valve to the engine, which could
result in the inability to shut off fuel to the engine and, in case of
certain engine fires, an uncontrollable fire that could lead to wing
failure.

Actions Since AD 2015-19-03, Amendment 39-18266 (80 FR 55527, September
16, 2015), Was Issued

    Since we issued AD 2015-19-03, Amendment 39-18266 (80 FR 55527,
September 16, 2015), we have determined that certain language in the
airworthiness limitation was not accurate. In paragraph D. of the
``Description'' column of figure 1 to paragraph (g) of AD 2015-19-03,
the ``START LEVER'' is identified as a ``FUEL CONTROL switch'' in four
locations. In addition, in two locations in paragraph D. of the
``Description'' column of figure 1 to paragraph (g) of AD 2015-19-03,
it specifies that fuel spar valve actuators are located in the ``rear
spar,'' but the correct location is the ``front spar.'' Also, in two
locations in paragraph D. of the ``Description'' column of figure 1 to
paragraph (g) of AD 2015-19-03, the term ``quadrant'' is used to
describe the control stand, but the correct terminology is ``CONTROL
STAND.'' We have determined that the language must be corrected to
avoid any confusion in the paragraphs of the airworthiness limitation.
We are issuing this AD to detect and correct latent failures of the
fuel shutoff valve to the engine, which could result in the inability
to shut off fuel to the engine and, in case of certain engine fires, an
uncontrollable fire that could lead to wing failure.

FAA's Determination

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

AD Requirements

    This AD requires revising the maintenance or inspection program to
include new airworthiness limitations.

Interim Action

    We consider this AD interim action. The manufacturer is currently
developing a modification that will address the unsafe condition
identified in this AD. Once this modification is developed, approved,
and available, we might consider additional rulemaking.

FAA's Justification and Determination of the Effective Date

    We are superseding AD 2015-19-03, Amendment 39-18266 (80 FR 55527,
September 16, 2015), to correct inaccurate terminology in paragraph D.
of the ``Description'' column of figure 1 to paragraph (g) of AD 2015-
19-03. We have made no other changes to the requirements published in
AD 2015-19-03. We have determined that the changes impose no additional
burden on any operator. Therefore, we find that notice and opportunity
for prior public comment are unnecessary and that good cause exists for
making this amendment effective in less than 30 days.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not provide you with notice and an opportunity to
provide your comments before it becomes effective. However, we invite
you to send any written data, views, or arguments about this AD. Send
your comments to an address listed under the ADDRESSES section. Include
the Docket Number FAA-2015-4208 and Directorate Identifier 2015-NM-152-
AD at the beginning of your comments. We specifically invite comments
on the overall regulatory, economic, environmental, and energy aspects
of this AD. We will consider all comments received by the closing date
and may amend this AD because of those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this AD.

Costs of Compliance

    We estimate that this AD affects 1,244 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Incorporating Airworthiness Limitation  1 work-hour x $85 per                 $0             $85        $105,740
                                         hour = $85.
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Authority for This Rulemaking

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

Regulatory Findings

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

    (3) Will not affect intrastate aviation in Alaska, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends part 39 of the Federal Aviation
Regulations (14 CFR part 39) as follows:

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by removing Airworthiness Directive (AD)
2015-19-03, Amendment 39-18266 (80 FR 55527, September 16, 2015), and
adding the following new AD:

2015-21-10 The Boeing Company: Amendment 39-18303; Docket No. FAA-
2015-4208; Directorate Identifier 2015-NM-152-AD.

(a) Effective Date

    This AD is effective October 28, 2015.

(b) Affected ADs

    This AD replaces AD 2015-19-03, Amendment 39-18266 (80 FR 55527,
September 16, 2015).

(c) Applicability

    This AD applies to all The Boeing Company Model 737-600, -700, -
700C, -800, -900, and -900ER series airplanes, certificated in any
category.

(d) Subject

    Air Transport Association (ATA) of America Code 2823, Fuel
Selector/Shutoff Valve.

(e) Unsafe Condition

    This AD was prompted by reports of latently failed fuel shutoff
valves discovered during fuel filter replacement. We are issuing
this AD to detect and correct latent failures of the fuel shutoff
valve to the engine, which could result in the inability to shut off
fuel to the engine and, in case of certain engine fires, an
uncontrollable fire that could lead to wing failure.

(f) Compliance

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

(g) Revision of Maintenance or Inspection Program

    Within 30 days after the effective date of this AD, revise the
maintenance or inspection program, as applicable, to add
airworthiness limitation number 28-AWL-MOV, ``Engine Fuel Shutoff
Valve (Fuel Spar Valve) Position Indication Operational Check,'' by
incorporating the information specified in figure 1 to paragraph (g)
of this AD into the Airworthiness Limitations Section of the
Instructions for Continued Airworthiness. The initial compliance
time for accomplishing the actions specified in 28-AWL-MOV is within
10 days after accomplishing the maintenance or inspection program
revision required by this paragraph.

      Figure 1 to Paragraph (g) of This AD--Engine Fuel Shutoff Valve (Fuel Spar Valve) Position Indication
                                                Operational Check
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             AWL No.                  Task            Interval          Applicability          Description
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28-AWL-MOV......................  ALI           DAILY..............  737-600, -700, -    Engine Fuel Shutoff
                                                                      700C, -800, -900,   Valve (Fuel Spar
                                                                      and -900ER series   Valve) Position
                                                                      airplanes.          Indication Operational
                                                                                Check.
                                                INTERVAL NOTE: The   APPLICABILITY       Concern: The fuel spar
                                                 operational check    NOTE: Only          valve actuator design
                                                 is not required on   applies to          can result in
                                                 days when the        airplanes with a    airplanes operating
                                                 airplane is not      fuel spar valve     with a failed fuel
                                                 used in revenue      actuator having     spar valve actuator
                                                 service.             part number         that is not reported.
                                                The check must be     MA20A2027           A latently failed fuel
                                                 done before          (S343T003-56) or    spar valve actuator
                                                 further flight       MA30A1001           could prevent fuel
                                                 once the airplane    (S343T003-66)       shutoff to an engine.
                                                 is returned to       installed at the    In the event of
                                                 revenue service.     engine fuel spar    certain engine fires,
                                                                      valve positions.    the potential exists
                                                                                for an engine fire to
                                                                                be uncontrollable.
                                                                                Perform one of the
                                                                                following checks of
                                                                                the engine fuel spar
                                                                                valve position (unless
                                                                                checked by the
                                                                                flightcrew in a manner
                                                                                approved by the
                                                                                principal operations
                                                                                inspector):
                                                                                A. Operational Check
                                                                                during engine
                                                                                shutdown.
                                                                                1. Do an operational
                                                                                check of the left
                                                                                engine fuel spar valve
                                                                                actuator.
                                                                                a. As the ENG 1 START
                                                                                LEVER on the CONTROL
                                                                                STAND is moved to the
                                                                                CUTOFF position,
                                                                                verify the SPAR VALVE
                                                                                CLOSED indication
                                                                                light on the OVERHEAD
                                                                                PANEL for No.1 Engine
                                                                                changes from OFF to
                                                                                BRIGHT then DIM.
                                                                                b. If the test fails
                                                                                (bright light fails to
                                                                                illuminate), before
                                                                                further flight, repair
                                                                                faults as required
                                                                                (refer to Boeing
                                                                                Aircraft Maintenance
                                                                                Manual (AMM) 28-22-
                                                                                11).
                                                                                2. Do an operational
                                                                                check of the right
                                                                                engine fuel spar valve
                                                                                actuator.
                                                                                a. As the ENG 2 START
                                                                                LEVER on the CONTROL
                                                                                STAND is moved to the
                                                                                CUTOFF position,
                                                                                verify the SPAR VALVE
                                                                                CLOSED indication
                                                                                light on the OVERHEAD
                                                                                PANEL for No. 2 Engine
                                                                                changes from OFF to
                                                                                BRIGHT then DIM.

                                                                                b. If the test fails
                                                                                (bright light fails to
                                                                                illuminate), before
                                                                                further flight, repair
                                                                                faults as required
                                                                                (refer to Boeing AMM
                                                                                28-22-11).
                                                                                B. Operational check
                                                                                during engine start.
                                                                                1. Do an operational
                                                                                check of the left
                                                                                engine fuel spar valve
                                                                                actuator.
                                                                                a. As the ENG 1 START
                                                                                LEVER on the CONTROL
                                                                                STAND is moved to the
                                                                                IDLE position, verify
                                                                                the SPAR VALVE CLOSED
                                                                                indication light on
                                                                                the OVERHEAD PANEL for
                                                                                No. 1 Engine changes
                                                                                from DIM to BRIGHT
                                                                                then OFF.
                                                                                b. If the test fails
                                                                                (bright light fails to
                                                                                illuminate), before
                                                                                further flight, repair
                                                                                faults as required
                                                                                (refer to Boeing AMM
                                                                                28-22-11).
                                                                                2. Do an operational
                                                                                check of the right
                                                                                engine fuel spar valve
                                                                                actuator.
                                                                                a. As the ENG 2 START
                                                                                LEVER on the CONTROL
                                                                                STAND is moved to the
                                                                                IDLE position, verify
                                                                                the SPAR VALVE CLOSED
                                                                                indication light on
                                                                                the OVERHEAD PANEL for
                                                                                No. 2 Engine changes
                                                                                from DIM to BRIGHT
                                                                                then OFF.
                                                                                b. If the test fails
                                                                                (bright light fails to
                                                                                illuminate), before
                                                                                further flight, repair
                                                                                faults as required
                                                                                (refer to Boeing AMM
                                                                                28-22-11).
                                                                                C. Operational check
                                                                                without engine
                                                                                operation.
                                                                                1. Supply electrical
                                                                                power to airplane
                                                                                using standard
                                                                                practices.
                                                                                2. Make sure No. 1 and
                                                                                No. 2 Engine FIRE
                                                                                switches on the Aft
                                                                                Electronic Panel are
                                                                                in the NORMAL (IN)
                                                                                position.
                                                                                3. Make sure No. 1 and
                                                                                No. 2 Engine Start
                                                                                Switches on the
                                                                                Forward Overhead Panel
                                                                                are in the OFF or AUTO
                                                                                position.
                                                                                4. Do an operational
                                                                                check to the left
                                                                                engine fuel spar valve
                                                                                actuator.
                                                                                a. Move ENG 1 START
                                                                                LEVER on the CONTROL
                                                                                STAND to the IDLE
                                                                                position and wait
                                                                                approximately 10
                                                                                seconds.
                                                                                NOTE: It is normal
                                                                                under this test
                                                                                condition for the ENG
                                                                                VALVE CLOSED
                                                                                indication light on
                                                                                the OVERHEAD PANEL to
                                                                                transition from DIM to
                                                                                BRIGHT and stay
                                                                                BRIGHT.
                                                                                b. Move ENG 1 START
                                                                                LEVER on the CONTROL
                                                                                STAND to the CUTOFF
                                                                                position.
                                                                                c. Verify the SPAR
                                                                                VALVE CLOSED
                                                                                indication light on
                                                                                the OVERHEAD PANEL for
                                                                                No. 1 Engine changes
                                                                                from OFF to BRIGHT
                                                                                then DIM.
                                                                                d. If the test fails
                                                                                (bright light fails to
                                                                                illuminate), before
                                                                                further flight, repair
                                                                                faults as required
                                                                                (refer to Boeing AMM
                                                                                28-22-11).
                                                                                5. Do an operational
                                                                                check of the right
                                                                                engine fuel spar valve
                                                                                actuator.
                                                                                a. Move ENG 2 START
                                                                                LEVER on the CONTROL
                                                                                STAND to the IDLE
                                                                                position and wait
                                                                                approximately 10
                                                                                seconds.
                                                                                NOTE: It is normal
                                                                                under this test
                                                                                condition for the ENG
                                                                                VALVE CLOSED
                                                                                indication light on
                                                                                the OVERHEAD PANEL to
                                                                                transition from DIM to
                                                                                BRIGHT and stay
                                                                                BRIGHT.
                                                                                b. Move ENG 2 START
                                                                                LEVER on the CONTROL
                                                                                STAND to the CUTOFF
                                                                                position.
                                                                                c. Verify the SPAR
                                                                                VALVE CLOSED
                                                                                indication light on
                                                                                the OVERHEAD PANEL for
                                                                                No.2 Engine changes
                                                                                from OFF to BRIGHT
                                                                                then DIM.
                                                                                d. If the test fails
                                                                                (bright light fails to
                                                                                illuminate), before
                                                                                further flight, repair
                                                                                faults as required
                                                                                (refer to Boeing AMM
                                                                                28-22-11).
                                                                                D. Perform an
                                                                                inspection of the
                                                                                engine fuel spar valve
                                                                                actuator position.

                                                                                NOTE: This inspection
                                                                                may be used whenever
                                                                                the SPAR VALVE light
                                                                                does not function
                                                                                properly.
                                                                                1. Make sure the ENG 1
                                                                                START LEVER on the
                                                                                CONTROL STAND is in
                                                                                the CUTOFF position.
                                                                                NOTE: It is not
                                                                                necessary to cycle the
                                                                                START LEVER to do this
                                                                                inspection.
                                                                                2. Inspect the left
                                                                                engine fuel spar valve
                                                                                actuator located in
                                                                                the left front spar.
                                                                                NOTE: The left engine
                                                                                fuel spar valve
                                                                                actuator is on the
                                                                                left wing front spar
                                                                                outboard of the engine
                                                                                strut. Access is
                                                                                through access panel
                                                                                521BB on the left wing
                                                                                leading edge.
                                                                                a. Verify the manual
                                                                                override handle on the
                                                                                engine fuel spar valve
                                                                                actuator is in the
                                                                                CLOSED position.
                                                                                b. Repair or replace
                                                                                any engine fuel spar
                                                                                valve actuator that is
                                                                                not in the CLOSED
                                                                                position (refer to
                                                                                Boeing AMM 28-22-11).
                                                                                3. Make sure the ENG 2
                                                                                START LEVER on the
                                                                                CONTROL STAND is in
                                                                                the CUTOFF position.
                                                                                NOTE: It is not
                                                                                necessary to cycle the
                                                                                START LEVER to do this
                                                                                inspection.
                                                                                4. Inspect the right
                                                                                engine fuel spar valve
                                                                                actuator located in
                                                                                the right front spar.
                                                                                NOTE: The right engine
                                                                                fuel spar valve
                                                                                actuator is on the
                                                                                right wing front spar
                                                                                outboard of the engine
                                                                                strut. Access is
                                                                                through access panel
                                                                                621BB on the right
                                                                                wing leading edge.
                                                                                a. Verify the manual
                                                                                override handle on the
                                                                                engine fuel spar valve
                                                                                actuator is in the
                                                                                CLOSED position.
                                                                                b. Repair or replace
                                                                                any engine fuel spar
                                                                                valve actuator that is
                                                                                not in the CLOSED
                                                                                position (refer to
                                                                                Boeing AMM 28-22-11).
----------------------------------------------------------------------------------------------------------------

(h) No Alternative Actions or Intervals

    After accomplishment of the maintenance or inspection program
revision required by paragraph (g) of this AD, no alternative
actions (e.g., inspections) or intervals may be used unless the
actions or intervals are approved as an alternative method of
compliance (AMOC) in accordance with the procedures specified in
paragraph (i)(1) of this AD.

(i) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19. In accordance with 14
CFR 39.19, send your request to your principal inspector or local
Flight Standards District Office, as appropriate. If sending
information directly to the manager of the ACO, send it to the
attention of the person identified in paragraph (j) of this AD.
Information may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(j) Related Information

    For more information about this AD, contact Rebel Nichols,
Aerospace Engineer, Propulsion Branch, ANM-140S, FAA, Seattle
Aircraft Certification Office, 1601 Lind Avenue SW., Renton, WA
98057-3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
(k) Material Incorporated by Reference

    None.

    Issued in Renton, Washington, on October 16, 2015.
Jeffrey E. Duven,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-26992 Filed 10-23-15; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 77, Number 27 (Thursday, February 9, 2012)]
[Rules and Regulations]
[Pages 6681-6682]
[FR Doc No: 2012-2884]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 62

[EPA-R04-OAR-2010-0392(a); FRL-9628-6]

Approval and Promulgation of State Plans for Designated
Facilities and Pollutants; State of Florida; Control of Large Municipal
Waste Combustor (LMWC) Emissions From Existing Facilities; Correction

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; correcting amendment.

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SUMMARY: On December 30, 2010, EPA published a final rule approving the
Clean Air Act (CAA) section 111(d)/129 State Plan (the Plan) submitted
by the Florida Department of Environmental Protection for the State of
Florida on July 12, 2007, for implementing and enforcing the Emissions
Guidelines (EGs) applicable to existing Large Municipal Waste
Combustors (LMWCs). These EGs apply to municipal waste combustors with
a capacity to combust more than 250 tons per day of municipal solid
waste (MSW). This action corrects an error in the regulatory language
in paragraph (a) of EPA's December 30, 2010, final rule.

DATES: This action is effective February 9, 2012.

ADDRESSES: Copies of the documentation used in the action being
corrected are available for inspection during normal business hours at
the following location: U.S. Environmental Protection Agency, Region 4,
61 Forsyth Street SW., Atlanta, Georgia 30303-8960. The Regional
Office's official hours of business are Monday through Friday, 8:30
a.m. to 4:30 p.m., excluding federal holidays.

FOR FURTHER INFORMATION CONTACT: Daniel Garver, Air Toxics Assessment
and Implementation Section, Air Toxics and Monitoring Branch, Air,
Pesticides and Toxics Management Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia
30303-8960. The telephone number is<PHONE_NUMBER>. Mr. Garver can also
be reached via electronic mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: This action corrects an error in the
regulatory language for an entry that appears in paragraph (a) of
Florida's Identification of Sources at 40 CFR 62.2355. The final action
determined that EPA approved the CAA section 111(d)/129 Plan applicable
to LMWCs in the State of Florida on December 30, 2010 (75 FR 82269).
However, EPA inadvertently indicated in 40 CFR 62.2355(a) that ``the
plan applies to existing facilities with a municipal waste combustor
(MWC) unit capacity greater than 250 tons per day of MSW, and for which
construction, reconstruction, or modification was commenced on or
before July 12, 2007.'' The correct date is September 20, 1994.
Therefore, EPA is correcting this error by deleting the date ``July 12,
2007'' and inserting the correct date ``September 20, 1994.''
    EPA has determined that today's action falls under the ``good
cause'' exemption in section 553(b)(3)(B) of the Administrative
Procedure Act (APA) which, upon finding ``good cause,'' authorizes
agencies to dispense with public participation where public notice and
comment procedures are impracticable, unnecessary, or contrary to the
public interest. Public notice and comment for this action are
unnecessary because today's action to correct an inadvertent error
contained in paragraph (a) of 40 CFR 62.2355 of the rulemaking and has
no substantive impact on EPA's December 30, 2010, approval. In
addition, EPA can identify no particular reason why the public would be
interested in being notified of the correction, or in having the
opportunity to comment on the correction prior to this action being
finalized, since this correction action does not change the meaning of
EPA's analysis or action to approve the amendment in paragraph (a) to
40 CFR 62.2355.
    EPA also finds that there is good cause under APA section 553(d)(3)
for this correction to become effective on the date of publication of
this action.

Section 553(d)(3) of the APA allows an effective date less than 30 days
after publication ``as otherwise provided by the agency for good cause
found and published with the rule.'' 5 U.S.C. 553(d)(3). The purpose of
the 30-day waiting period prescribed in APA section 553(d)(3) is to
give affected parties a reasonable time to adjust their behavior and
prepare before the final rule takes effect. Today's rule, however, does
not create any new regulatory requirements such that affected parties
would need time to prepare before the rule takes effect. Rather,
today's action merely corrects an error in paragraph (a) of a prior
rulemaking by correcting the date as identified above in 40 CFR 62.2355
in a revision, which EPA approved on December 30, 2010. For these
reasons, EPA finds good cause under APA section 553(d)(3) for this
correction to become effective on the date of publication of this
action.

Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason, this action is also not subject to Executive Order 13211,
``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action
merely corrects an error in paragraph (a) of a prior rulemaking by
correcting the date as identified above in 40 CFR 62.2355, which EPA
approved on December 30, 2010, and imposes no additional requirements
beyond those imposed by state law. Accordingly, the Administrator
certifies that this rule will not have a significant economic impact on
a substantial number of small entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.). Because this rule merely corrects an
inadvertent error in paragraph (a) of a prior rule, and does not impose
any additional enforceable duty beyond that required by state law, it
does not contain any unfunded mandate or significantly or uniquely
affect small governments, as described in the Unfunded Mandates Reform
Act of 1995 (Pub. L. 104-4).
    This rule also does not have tribal implications because it will
not have a substantial direct effect on one or more Indian tribes, on
the relationship between the Federal Government and Indian tribes, or
on the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175 (65
FR 67249, November 9, 2000). This rule also does not have Federalism
implications because it does not have substantial direct effects on the
states, on the relationship between the national government and the
states, or on the distribution of power and responsibilities among the
various levels of government, as specified in Executive Order 13132 (64
FR 43255, August 10, 1999). This rule merely corrects an error in
paragraph (a) of a prior rulemaking by correcting the date as
identified above in 40 CFR 62.2355, in a revision which EPA approved on
December 30, 2010, and does not alter the relationship or the
distribution of power and responsibilities established in the CAA. This
rule also is not subject to Executive Order 13045 ``Protection of
Children from Environmental Health Risks and Safety Risks'' (62 FR
19885, April 23, 1997), because it is not economically significant. In
addition, this rule does not involve technical standards, thus the
requirements of section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. This rule
also does not impose an information collection burden under the
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.).
    The Congressional Review Act, 5 U.S.C. section 801 et seq., as
added by the Small Business Regulatory Enforcement Fairness Act of
1996, generally provides that before a rule may take effect, the agency
promulgating the rule must submit a rule report, which includes a copy
of the rule, to each House of the Congress and to the Comptroller
General of the United States. EPA will submit a report containing this
rule and other required information to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States
prior to publication of the rule in the Federal Register. A major rule
cannot take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by April 9, 2012. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
Parties with objections to this direct final rule are encouraged to
file a comment in response to the parallel notice of proposed
rulemaking for this action published in the proposed rules section of
today's Federal Register, rather than file an immediate petition for
judicial review of this direct final rule, so that EPA can withdraw
this direct final rule and address the comment in the proposed
rulemaking. This action may not be challenged later in proceedings to
enforce its requirements. (See CAA section 307(b)(2).)

List of Subjects in 40 CFR Part 62

    Environmental protection, Air pollution control, Incorporation by
reference, Particulate matter.

    Dated: December 9, 2011.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.

    40 CFR part 62 is amended as follows:

PART 62--[AMENDED]

0
1. The authority citation for part 62 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart K--Florida

0
2. In Sec.  62.2355, paragraph (a) is revised to read as follows:

Sec.  62.2355  Identification of sources.

    (a) The plan applies to existing facilities with a municipal waste
combustor (MWC) unit capacity greater than 250 tons per day of
municipal solid waste (MSW), and for which construction,
reconstruction, or modification was commenced on or before September
20, 1994.
* * * * *

[FR Doc. 2012-2884 Filed 2-8-12; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 47 (Thursday, March 10, 2022)]
[Notices]
[Pages 13722-13723]
[FR Doc No: 2022-05057]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP21-29-000]

Gas Transmission Northwest LLC; Notice of Availability of the
Environmental Assessment for the Proposed Coyote Springs Compressor
Station Project

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) has prepared a supplemental environmental assessment (EA)
for the Coyote Springs Compressor Station Project, proposed by Gas
Transmission Northwest LLC (GTN) in the above-referenced docket. GTN
requests authorization to construct and operate one new 1,586
horsepower compressor station, in Morrow County, Oregon (Coyote Springs
Compressor Station).
    The supplemental EA assesses the potential environmental effects of
the construction and operation of the Coyote Springs Compressor Station
Project in accordance with the requirements of the National
Environmental Policy Act and supplements Commission staff's March 15,
2021 EA to address a timely protest as well as updated information
regarding impacts on historic properties. The FERC staff concludes that
approval of the proposed project, with appropriate mitigating measures,
would not constitute a major federal action significantly affecting the
quality of the human environment.
    The Commission mailed a copy of the Notice of Availability to
federal, state, and local government representatives and agencies;
environmental and public interest groups; Native American tribes; and
potentially affected landowners and other interested individuals and
groups. The EA is only available in electronic format. It may be viewed
and downloaded from the FERC's website (www.ferc.gov), on the natural
gas environmental documents page (https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents). In addition, the EA
may be accessed by using the eLibrary link on the FERC's website. Click
on the eLibrary link (https://elibrary.ferc.gov/eLibrary/search),
select ``General Search'' and enter the docket number in the ``Docket
Number'' field, excluding the last three digits (i.e., CP21-29). Be
sure you have selected an appropriate date range. For assistance,
please contact FERC Online Support at [email protected] or
toll free at<PHONE_NUMBER>, or for TTY, contact<PHONE_NUMBER>.
    The EA is not a decision document. It presents Commission staff's
independent analysis of the environmental issues for the Commission to
consider when addressing the merits of all issues in this proceeding.
Any person wishing to comment on the EA may do so. Your comments should
focus on the EA's disclosure and discussion of potential environmental
effects, reasonable alternatives, and measures to avoid or lessen
environmental impacts. The more specific your comments, the more useful
they will be. To ensure that the Commission has the opportunity to
consider your comments prior to making its decision on this project, it
is important that we receive your comments in Washington, DC on or
before 5:00 p.m. Eastern Time on April 4, 2022.
    For your convenience, there are three methods you can use to file
your comments to the Commission. The Commission encourages electronic
filing of comments and has staff available to assist you at (866) 208-
3676 or [email protected]. Please carefully follow these
instructions so that your comments are properly recorded.
    (1) You can file your comments electronically using the eComment
feature on the Commission's website (www.ferc.gov) under the link to
FERC Online. This is an easy method for submitting brief, text-only
comments on a project;
    (2) You can also file your comments electronically using the
eFiling feature on the Commission's website (www.ferc.gov) under the
link to FERC Online. With eFiling, you can provide comments in a
variety of formats by attaching them as a file with your submission.
New eFiling users must first create an account by clicking on
``eRegister.'' You must select the type of filing you are making. If
you are filing a comment on a particular project, please select
``Comment on a Filing''; or

    (3) You can file a paper copy of your comments by mailing them to
the Commission. Be sure to reference the project docket number (CP21-
29) on your letter. Submissions sent via the U.S. Postal Service must
be addressed to: Kimberly D. Bose, Secretary, Federal Energy Regulatory
Commission, 888 First Street NE, Room 1A, Washington, DC 20426.
Submissions sent via any other carrier must be addressed to: Kimberly
D. Bose, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852.
    Filing environmental comments will not give you intervenor status,
but you do not need intervenor status to have your comments considered.
Only intervenors have the right to seek rehearing or judicial review of
the Commission's decision. At this point in this proceeding, the
timeframe for filing timely intervention requests has expired. Any
person seeking to become a party to the proceeding must file a motion
to intervene out-of-time pursuant to Rule 214(b)(3) and (d) of the
Commission's Rules of Practice and Procedures [18 CFR 385.214(b)(3) and
(d)] and show good cause why the time limitation should be waived.
Motions to intervene are more fully described at https://www.ferc.gov/ferc-online/ferc-online/how-guides.
    Additional information about the project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC website (www.ferc.gov) using the eLibrary link. The eLibrary link
also provides access to the texts of all formal documents issued by the
Commission, such as orders, notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to https://www.ferc.gov/ferc-online/overview to
register for eSubscription.

    Dated: March 4, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-05057 Filed 3-9-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 86, Number 27 (Thursday, February 11, 2021)]
[Notices]
[Pages 9110-9112]
[FR Doc No: 2021-02779]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91070; File No. SR-FINRA-2020-037]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving Proposed Rule Change To Amend the By-
Laws of FINRA Regulation, Inc. To Align the Grounds for Member Removal
From the NAC With an Existing Provision in the FINRA By-Laws

February 5, 2021.

I. Introduction

    On October 22, 2020, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ``Act'' or ``Exchange Act'') \1\ and Rule
19b-4 thereunder,\2\ a proposed rule change to amend a provision in the
By-Laws of FINRA Regulation, Inc. (``FINRA Regulation''), FINRA's
regulatory subsidiary. The proposed rule change would further align the
grounds in the FINRA Regulation By-Laws for removal of a member from
the National Adjudicatory Council (``NAC'') with an existing provision
in the FINRA By-Laws for removal of a governor from the FINRA Board of
Governors (``FINRA Board'').\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See infra Section II.
---------------------------------------------------------------------------

    The proposed rule change was published for comment in the Federal
Register on November 9, 2020.\4\ The Commission received no comments on
the proposed rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \4\ See Exchange Act Release No. 90324 (November 3, 2020), 85 FR
71387 (November 9, 2020) (File No. SR-FINRA-2020-037) (the
``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposal

    As described in the Notice, FINRA Regulation is the regulatory
subsidiary of FINRA and operates according to the Plan of Allocation
and Delegation of Functions by FINRA to Subsidiaries (the ``Plan'').\5\
The FINRA Regulation By-Laws authorize the NAC to function on behalf of
the FINRA Board in several capacities.\6\ For example, FINRA explains
that the NAC presides over disciplinary matters that have been appealed
to or called for review by the NAC and also acts on applications in
statutory disqualification and membership proceedings.\7\ In most
matters that the NAC considers, FINRA states that the NAC prepares
proposed written decisions that become final FINRA action if the FINRA
Board does not call for review of those decisions.\8\
---------------------------------------------------------------------------

    \5\ See id. at 71388, n.4 (citing the Plan, Sec. II., FINRA
Regulation, Inc., https://www.finra.org/rules-guidance/rulebooks/corporate-organization/ii-finra-regulation-inc).
    \6\ See id. (citing Article V, Sec. 5.1 of the FINRA Regulation
By-Laws).
    \7\ See id. FINRA states that the NAC also exercises exemption
authority and acts in other proceedings as set forth in the FINRA
Rule 9000 Series (Code of Procedure). The FINRA Board may also
delegate other powers and duties to the NAC as the FINRA Board deems
appropriate and in a manner not inconsistent with the Plan. See id.
    \8\ See id.
---------------------------------------------------------------------------

    FINRA also states that it periodically reviews its and FINRA
Regulation's By-Laws to ensure adherence to effective governance
practices.\9\ Based on that review, FINRA explains that currently,
Article V, Section 5.8 of the FINRA Regulation By-Laws provides that,
``[a]ny or all of the members of the [NAC] may be removed from office
at any time for refusal, failure, neglect, or inability to discharge
the duties of such office by majority vote of the FINRA Board.'' \10\
By comparison, however, the FINRA By-Laws provide that a governor may
be removed for those grounds as well as ``for any cause affecting the
best interests of [FINRA] the sufficiency of which the Board shall be
the sole judge.'' \11\ As a result, FINRA proposes to amend the FINRA
Regulation By-Laws to add this ground for removal of a NAC member to
further align the bases for removal of a NAC member with the bases for
removal of a FINRA Board governor.\12\ Specifically, the proposed rule
change would amend the FINRA Regulation By-Laws to permit a NAC member
to be removed by a majority vote of the FINRA Board ``for any cause
affecting the best interests of the [NAC] the sufficiency of which the
FINRA Board shall be the sole judge.'' \13\
---------------------------------------------------------------------------

    \9\ See id.
    \10\ See id. As FINRA explains, the FINRA Regulation By-Laws
were amended in 2008 to, among other things, designate the FINRA
Board as the body authorized to oversee the NAC and empowered to
remove NAC members for the grounds mentioned above. See id. (citing
Exchange Act Release No. 58909 (November 6, 2008), 73 FR 68467
(November 18, 2008) (Order Approving File No. SR-FINRA-2008-046)
(the ``FINRA Regulation By-Laws Approval Order'').
    \11\ See id. Compare Article VII, Section 1(b) of the FINRA By-
Laws, with Article V, Sec. 5.8 of the FINRA Regulation By-Laws.
    \12\ See Notice, 85 FR at 71388.
    \13\ See id.
---------------------------------------------------------------------------

    FINRA further explains that the removal of a NAC member would
continue to require a majority vote of the FINRA Board, while a vote to
remove a FINRA Board governor requires a two-thirds vote.\14\ In

discussing this difference between voting thresholds for removal, FINRA
states that the higher voting standard for the removal of a governor
reflects the historical standard that existed at the National
Association of Securities Dealers (``NASD'') prior to the formation of
FINRA, and that it provides an additional safeguard at the FINRA Board
level ``to ensure a diverse, majority non-industry composition, and
fair representation of the industry in governance matters.'' \15\
---------------------------------------------------------------------------

    \14\ See id. As FINRA notes, both FINRA and FINRA Regulation are
corporations organized under Delaware law. The Delaware General
Corporation Law provides that, in general, directors may be removed
by a majority vote of the shares then entitled to vote at an
election of directors. See Del. Code Ann. Tit. 8, Sec.  141(k).
FINRA states that it has adopted a removal threshold for NAC members
that is consistent with the Delaware General Corporation Law,
although the NAC is not subject to this standard. See Notice, 85 FR
at 71388, n.9.
    \15\ Notice, 85 FR at 71388. FINRA also notes that the provision
of the FINRA Regulation By-Laws addressing the composition of the
NAC also provides for a diverse, majority non-industry composition,
and for the fair representation of the industry. See id. at n.10
(citing Article V, Section 5.2(a) of the FINRA Regulation By-Laws
and Exchange Act Release No. 78094 (June 17, 2016), 81 FR 40932,
40934-35 (June 23, 2016)).
---------------------------------------------------------------------------

    FINRA also states that, given the NAC's adjudicatory role, the best
interests of the NAC are more targeted than the best interests of
FINRA.\16\ More specifically, FINRA explains that the best interests of
the NAC are reflected in conduct and attributes that ensure that the
NAC remains an unbiased and competent adjudicatory body that is free of
conflicts of interest, that its members conduct themselves with
integrity, and that its decisions are rendered fairly and consistently
with the law and rules that govern FINRA members and their associated
persons.\17\ FINRA also states that the FINRA Board's decision to
remove a NAC member is a facts and circumstances determination.\18\ In
considering whether to remove a NAC member for cause affecting the best
interests of the NAC, FINRA explains that its Board may consider, among
other things, the NAC member's adherence to general standards
concerning actual and apparent adjudicator conflicts of interest and
bias,\19\ and to the NAC's Conflict of Interest and Bias Policy, which
sets forth broad-based principles of behavior that are expected from
NAC members.\20\ FINRA recognizes that there may, depending on the
facts and circumstances, be overlap in part between the new and
existing grounds to remove a NAC member. However, FINRA states that,
depending on the facts and circumstances, the proposed rule change may
also provide an additional basis for removal for a cause affecting the
best interests of the NAC that would not fall within the scope of the
FINRA's Board's current removal authority.\21\
---------------------------------------------------------------------------

    \16\ See id.
    \17\ See id.
    \18\ See id. at 71388-89.
    \19\ See id. at 71388, n.11 (citing Article IV, Section 4.14(a)
of the FINRA Regulation By-Laws).
    \20\ See id. at n.12. FINRA notes that the principles outlined
in the NAC's Conflict of Interest and Bias Policy are independence,
impartiality, integrity, accountability and transparency; and place
upon NAC adjudicators the responsibility for recognizing and
reporting actual and apparent conflicts of interest and bias. See
id.
    \21\ See id. at 71389.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review of the proposed rule change, the Commission
finds that the proposed rule change is consistent with the requirements
of the Exchange Act and the rules and regulations thereunder that are
applicable to a national securities association.\22\ In particular, the
Commission finds that the proposed rule change is consistent with
Section 15A(b)(4) of the Exchange Act,\23\ which requires, among other
things, that the rules of a national securities association, like
FINRA, assure the fair representation of its members in the
administration of its affairs. Additionally, the Commission finds that
the proposed rule change is also consistent with Section 15A(b)(6) of
the Exchange Act,\24\ which requires, among other things, that FINRA
rules be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, and, in
general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \22\ In approving this rule change, the Commission has
considered the rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
    \23\ 15 U.S.C. 78o-3(b)(4).
    \24\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    As a threshold matter, the Commission observes that the provision
that is being added to the FINRA Regulation By-Laws by this proposed
rule change mirrors a parallel provision found in the FINRA By-
Laws.\25\ Moreover, the Commission has previously reviewed and approved
a proposal that conformed the then-NASD Regulation By-Laws to the FINRA
By-Laws, and has also previously reviewed and approved the NAC
committee and its governance structure (which remains the same under
this proposal), finding both proposals to be consistent with Section
15A(b)(4) of the Exchange Act.\26\ We discuss below some of the
pertinent aspects of the Commission's prior findings as they apply, at
least in part, to the current proposed rule change.
---------------------------------------------------------------------------

    \25\ See Notice, 85 FR at 71388 (comparing Article VII, Section
1(b) of the FINRA By-Laws with Article V, Sec. 5.8 of the FINRA
Regulation By-Laws).
    \26\ See id. at n.17 (citing Exchange Act Release No. 56145
(July 26, 2007), 72 FR 42169 (August 1, 2007) (the ``NASD By-Laws
Approval Order''), as amended by Exchange Act Release No. 56145A
(May 30, 2008), 73 FR 32377 (June 6, 2008) (Order Approving File No.
SR-NASD-2007-023)). These orders approved FINRA's By-Laws when the
NASD merged with the member regulation, enforcement and arbitration
operations of the New York Stock Exchange (``NYSE'') to form FINRA.
See also infra notes 31-32.
---------------------------------------------------------------------------

    As the Commission explained in approving the FINRA By-Laws, Section
15A(b)(4) requires that the rules of a national securities association,
like FINRA, assure the fair representation of its members in, among
other things, the administration of its affairs.\27\ In approving the
FINRA By-Laws, the Commission found, in part, that FINRA's members'
participation on various committees provided for the fair
representation of members in the administration of the affairs of a
self-regulatory organization such as FINRA, particularly with respect
to participation on committees relating to, among other things, the
disciplinary process.\28\ More specifically, the Commission observed
that FINRA has extensive member involvement in the administration of
its affairs through representation on various subject matter
committees, including the NAC.\29\ In connection with this proposal,
FINRA states that, similar to the FINRA By-Laws addressing the
composition of its Board, the FINRA Regulation By-Laws addressing the
composition of the NAC provide for a diverse, majority non-industry
composition, and for the fair representation of industry.\30\ The
Commission agrees with FINRA's statements and, moreover, observes that
the Commission found previously that the NAC's governance structure,
including the NAC's composition as well as the nomination and election
processes for NAC seats, align with those of the FINRA Board and were
consistent with Section 15A(b)(4) of the Act.\31\
---------------------------------------------------------------------------

    \27\ See NASD By-Laws Approval Order, 72 FR at 42182 (explaining
that this requirement helps to assure that members have a stake in
the governance of the national securities association, which is
charged with self-regulatory responsibilities under the Exchange
Act).
    \28\ See id. at 42185.
    \29\ See id. See also supra note 7 and accompanying text.
    \30\ See supra note 15 and accompanying text.
    \31\ See FINRA Regulation By-Laws Approval Order, 73 FR at
68469-70.
---------------------------------------------------------------------------

    Furthermore, in approving certain amendments to the then-NASD
Regulation By-Laws, the Commission found that because those amendments
conformed certain NASD Regulation By-Laws provisions to the relevant

provisions in the FINRA By-Laws and reflected the governance structure
set forth in the FINRA By-Laws those amendments were consistent with
the Exchange Act.\32\ Similarly, this proposal will also further
conform the FINRA Regulation By-Laws with the FINRA By-Laws and will
also continue to reflect the previously approved governance structure
of the NAC. As a result, the Commission believes that this proposal
will continue to help assure the fair representation of FINRA members
in the administration of FINRA's affairs and, therefore, is consistent
with Section 15A(b)(4) of the Act.
---------------------------------------------------------------------------

    \32\ See NASD By-Laws Approval Order, 72 FR at 42188.
---------------------------------------------------------------------------

    The Commission further observes that the NAC acts on behalf of the
FINRA Board in several important capacities, including presiding over
disciplinary matters that have been appealed to or called for review by
the NAC and acting on applications in statutory disqualification and
membership proceeding.\33\ Given the NAC's ability to perform these
actions and prepare written decisions on behalf of the FINRA Board, and
that these decisions become FINRA's final action in the vast majority
of cases,\34\ the Commission finds that applying the same grounds for
the removal of a NAC member as those that apply for the removal of a
governor is consistent with the Act. The proposal will strengthen the
FINRA Board's oversight of the NAC and further support the principles
outlined in the NAC's Conflict of Interest and Bias Policy, which
include independence, impartiality, integrity, and accountability.\35\
In doing so, the proposal will help protect investors and further the
public interest by expanding the scope of the FINRA Board's authority
to remove NAC members that, in the Board's view, may be biased or have
actual or apparent conflicts of interest or otherwise impede the NAC's
adjudicatory responsibilities.\36\
---------------------------------------------------------------------------

    \33\ See supra note 7 and accompanying text.
    \34\ See Notice, 85 FR at 71389.
    \35\ See id. at 71388, n.12. See also supra note 20 and
accompanying text.
    \36\ See id. at 71388 (citing Article IV, Section 4.14(a) of the
FINRA Regulation By-Laws).
---------------------------------------------------------------------------

    In sum, the Commission finds that the proposal will continue to
help assure the fair representation of FINRA members in the
administration of FINRA's affairs. The Commission also finds that this
proposal will help protect investors and further the public interest by
supporting fair and impartial adjudicatory processes for, among other
things, FINRA's disciplinary matters as well as statutory
disqualification and membership proceedings.

IV. Conclusion

    It is therefore ordered pursuant to Section 19(b)(2) of the
Exchange Act \37\ that the proposal (SR-FINRA-2020-037) is approved.
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
---------------------------------------------------------------------------

    \38\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-02779 Filed 2-10-21; 8:45 am]
BILLING CODE 8011-01-P