[Federal Register Volume 81, Number 200 (Monday, October 17, 2016)]
[Notices]
[Pages 71549-71556]
[FR Doc No: 2016-24978]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79082; File No. SR-NASDAQ-2016-134]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change To List and Trade Exchange-
Traded Managed Funds

October 11, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\, and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 28, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade under Nasdaq Rule 5745
(Exchange-Traded Managed Fund Shares (``NextShares'')) the common
shares (``Shares'') of the exchange-traded managed funds described
herein (each, a ``Fund,'' and collectively, the ``Funds'').\3\
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    \3\ Except for the specific Fund information set forth below,
this rule filing conforms to the rule filing, as modified by
amendments 1 and 2 thereto, relating to the listing and trading on
Nasdaq of the shares of 18 series of the Eaton Vance ETMF Trust and
the Eaton Vance ETMF Trust II, as approved by the Commission in
Securities Exchange Act Release No. 75499 (July 21, 2015), 80 FR
44406 (July 21, 2015) (SR-NASDAQ-2015-036).

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    The Exchange proposes to list and trade the Shares of each Fund
under Nasdaq Rule 5745, which governs the listing and trading of
exchange-traded managed fund shares or NextShares, as defined in Nasdaq
Rule 5745(c)(1), on the Exchange.\4\ Each Fund listed below is
registered with the Commission as an open-end investment company and
has filed a registration statement on Form N-1A (``Registration
Statement'') with the Commission. Each Fund is a series of the Trust
listed below and will be advised by an investment adviser registered
under the Investment Advisers Act of 1940 (``Adviser''), as described
below. Each Fund will be actively managed and will pursue various
principal investment strategies, as noted below.\5\
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    \4\ The Commission approved Nasdaq Rule 5745 in Securities
Exchange Act Release No. 73562 (Nov. 7, 2014), 79 FR 68309 (Nov. 14,
2014) (SR-NASDAQ-014-020) [sic].
    \5\ Additional information regarding the Funds will be available
on the free public Web site for the Funds and in the Registration
Statements for the Funds.
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1. Gabelli NextSharesTM Trust
    Gabelli NextSharesTM Trust (the ``Trust'') is registered
with the Commission as an open-end investment company and has filed a
Registration Statement with the Commission.\6\ Each of the following
Funds is a series of the Trust.\7\
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    \6\ See Registration Statement on Form N-1A for the Trust dated
June 6, 2016 (File Nos. 333-211881 and 811-23160). The descriptions
of the Funds and the Shares contained herein conform to the
Registration Statement.
    \7\ The Commission has issued an order granting the Trust and
certain affiliates exemptive relief under the Investment Company
Act. See Investment Company Act Release No. 31608 (May 19, 2015)
(File No. 812-14438).
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    Gabelli Funds, LLC will be the Adviser to the Funds. The Adviser is
not a registered broker-dealer, although it is affiliated with a
broker-dealer. Gabelli Funds, LLC will also act as administrator to the
Funds. The Adviser has implemented a fire wall with respect to its
affiliated broker-dealer regarding access to information concerning the
composition and/or changes to each Fund's portfolio. In the future
event that (a) the Adviser registers as a broker-dealer or becomes
newly affiliated with a broker-dealer, or (b) any new adviser or a sub-
adviser to a Fund is a registered broker-dealer or becomes affiliated
with a broker-dealer, it will implement a fire wall with respect to its
relevant personnel and/or such broker-dealer affiliate, if applicable,
regarding access to information concerning the composition and/or
changes to the relevant Fund's portfolio and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding such portfolio. G.distributors, LLC,
will be the principal underwriter and distributor of each Fund's
Shares. BNY Mellon Investment Servicing (US) Inc. will act as the
custodian, transfer agent, and sub-administrator to the Funds.
Interactive Data Pricing and Reference Data, Inc. will be the intraday
indicative value (``IIV'') calculator to the Funds.
    Each Fund will be actively managed and will pursue the various
principal investment strategies described below.\8\
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    \8\ Additional information regarding the Funds will be available
on a free public Web site for the Funds (www.gabelli.com or
www.nextshares.com.) and in the Registration Statement for the
Funds.
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a. Gabelli ESG NextSharesTM (the ``Gabelli ESG Fund'')
    The Gabelli ESG Fund seeks to provide capital appreciation. The
Gabelli ESG Fund seeks to achieve its objective by investing
substantially all, and in any case no less than 80%, of its net assets
plus borrowings for investment purposes in common and preferred stocks
of companies that meet the Gabelli ESG Fund's guidelines for social
responsibility at the time of investment. Pursuant to its social
responsibility guidelines, the Gabelli ESG Fund will not invest in
publicly traded fossil fuel (coal, oil, and gas) companies, the top 50
defense/weapons contractors, or in companies that derive more than 5%
of their revenues from the following areas: Tobacco, alcohol, gaming,
defense/weapons production, and companies involved in the manufacture
of abortion related products.
b. Gabelli All Cap NextSharesTM (the ``Gabelli All Cap
Fund'')
    The Gabelli All Cap Fund primarily seeks to provide capital
appreciation. The Gabelli All Cap Fund's secondary goal is current
income. Under normal market conditions, the Gabelli All Cap Fund
invests at least 80% of its net assets plus borrowings for investment
purposes in stocks that are listed on a recognized securities exchange
or similar market. The Gabelli All Cap Fund may also invest in common
and preferred securities of foreign issuers.
c. Gabelli Equity Income NextSharesTM (the ``Gabelli Equity
Income Fund'')
    The Gabelli Equity Income Fund seeks a high level of total return
on its assets with an emphasis on income. The Gabelli Equity Income
Fund will seek to achieve its investment objective through a
combination of capital appreciation and current income by investing,
under normal market conditions, at least 80% of its net assets plus
borrowings for investment purposes in income producing equity
securities. Income producing equity securities include, for example,
common stock and preferred stock.
d. Gabelli Small and Mid Cap Value NextSharesTM (the
``Gabelli Small and Mid Cap Value Fund'')
    The Gabelli Small and Mid Cap Value Fund seeks long-term capital
growth. Under normal market conditions, the Gabelli Small and Mid Cap
Value Fund invests at least 80% of its net assets plus borrowings for
investment purposes (``80% Policy'') in equity securities (such as
common stock and preferred stock) of companies with small or medium-
sized market capitalizations (``small cap'' and ``mid cap'' companies,
respectively). A company's market capitalization is generally
calculated by multiplying the number of a company's shares outstanding
by its stock price. The Gabelli Small and Mid Cap Value Fund defines
``small cap companies'' as those with a market capitalization generally
less than $3 billion at the time of investment and ``mid cap
companies'' as those with a market capitalization between $3 billion
and $12 billion at the time of investment. Subject to its 80% Policy,
the Gabelli Small and Mid Cap Value Fund may invest in equity
securities of companies of any market capitalization. In addition, the
Gabelli Small and Mid Cap Value Fund may invest up to 25% of its total
assets in securities of issuers in a single industry.

e. Gabelli Media Mogul NextSharesTM (the ``Gabelli Media
Mogul Fund'')
    The Gabelli Media Mogul Fund seeks to provide capital appreciation.
Under normal market conditions, the Fund invests at least 80% of net
assets plus borrowings for investment purposes in companies that were
spun-off from or that are tracking stocks issued by Liberty Media
Corporation, as well as in companies that resulted from subsequent
mergers of any such spin-offs or stocks that track performance of
companies that resulted from subsequent mergers of any such spin-offs
or tracking stocks, and in public companies in which Liberty Media
Corporation and its successor companies invest. The current investable
universe includes approximately 28 U.S. and non-U.S. listed companies
in the telecommunications, media, publishing, and entertainment
industries.
Creations and Redemptions of Shares
    Shares will be issued and redeemed on a daily basis for each Fund
at the next-determined net asset value (``NAV'') \9\ in specified
blocks of Shares called ``Creation Units.'' A Creation Unit will
consist of at least 25,000 Shares. Creation Units may be purchased and
redeemed by or through ``Authorized Participants.'' \10\ Purchases and
sales of Shares in amounts less than a Creation Unit may be effected
only in the secondary market, as described below, and not directly with
a Fund.
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    \9\ As with other registered open-end investment companies, NAV
generally will be calculated daily Monday through Friday as of the
close of regular trading on the New York Stock Exchange, normally
4:00 p.m. Eastern Time. NAV will be calculated by dividing a Fund's
net asset value by the number of Shares outstanding. Information
regarding the valuation of investments in calculating a Fund's NAV
will be contained in the Registration Statement for its Shares.
    \10\ ``Authorized Participants'' will be either: (1)
``Participating parties,'' i.e., brokers or other participants in
the Continuous Net Settlement System (``CNS System'') of the
National Securities Clearing Corporation (``NSCC''), a clearing
agency registered with the Commission and affiliated with the
Depository Trust Company (``DTC''), or (2) DTC participants, which
in either case have executed participant agreements with the Fund's
distributor and transfer agent regarding the creation and redemption
of Creation Units. Investors will not have to be Authorized
Participants in order to transact in Creation Units, but must place
an order through and make appropriate arrangements with an
Authorized Participant for such transactions.
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    The creation and redemption process for Funds may be effected ``in
kind,'' in cash, or in a combination of securities and cash. Creation
``in kind'' means that an Authorized Participant--usually a brokerage
house or large institutional investor--purchases the Creation Unit with
a basket of securities equal in value to the aggregate NAV of the
Shares in the Creation Unit. When an Authorized Participant redeems a
Creation Unit in kind, it receives a basket of securities equal in
value to the aggregate NAV of the Shares in the Creation Unit.\11\
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    \11\ In compliance with Nasdaq Rule 5745(b)(5), which applies to
Shares based on an international or global portfolio, each Fund's
application for exemptive relief under the Investment Company Act
states that the Fund must comply with the federal securities laws in
accepting securities for deposits and satisfying redemptions with
securities, including that the securities accepted for deposits and
the securities used to satisfy redemption requests are sold in
transactions that would be exempt from registration under the
Securities Act of 1933, as amended (15 U.S.C. 77a) (``Securities
Act'').
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Composition File
    As defined in Nasdaq Rule 5745(c)(3), the Composition File is the
specified portfolio of securities and/or cash that a Fund will accept
as a deposit in issuing a Creation Unit of Shares, and the specified
portfolio of securities and/or cash that a Fund will deliver in a
redemption of a Creation Unit of Shares. The Composition File will be
disseminated through the NSCC once each business day before the open of
trading in Shares on such day and also will be made available to the
public each day on a free Web site. Because the Funds seek to preserve
the confidentiality of their current portfolio trading program, a
Fund's Composition File generally will not be a pro rata reflection of
the Fund's investment positions. Each security included in the
Composition File will be a current holding of the Fund, but the
Composition File generally will not include all of the securities in
the Fund's portfolio or match the weightings of the included securities
in the portfolio. Securities that the Adviser is in the process of
acquiring for a Fund generally will not be represented in the Fund's
Composition File until their purchase has been completed. Similarly,
securities that are held in a Fund's portfolio but in the process of
being sold may not be removed from its Composition File until the sale
program is substantially completed. Funds creating and redeeming Shares
in kind will use cash amounts to supplement the in-kind transactions to
the extent necessary to ensure that Creation Units are purchased and
redeemed at NAV. The Composition File also may consist entirely of
cash, in which case it will not include any of the securities in the
Fund's portfolio.\12\
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    \12\ In determining whether a Fund will issue or redeem Creation
Units entirely on a cash basis, the key consideration will be the
benefit that would accrue to the Fund and its investors. For
instance, in bond transactions, the Adviser may be able to obtain
better execution for a Fund than Authorized Participants because of
the Adviser's size, experience and potentially stronger
relationships in the fixed-income markets.
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Transaction Fees
    All persons purchasing or redeeming Creation Units of a Fund are
expected to incur a transaction fee to cover the estimated cost to that
Fund of processing the transaction, including the costs of clearance
and settlement charged to it by NSCC or DTC, and the estimated trading
costs (i.e., brokerage commissions, bid-ask spread, and market impact)
to be incurred in converting the Composition File to or from the
desired portfolio holdings. The transaction fee is determined daily and
will be limited to amounts determined by the Adviser to be appropriate
to defray the expenses that a Fund incurs in connection with the
purchase or redemption of Creation Units. The purpose of transaction
fees is to protect a Fund's existing shareholders from the dilutive
costs associated with the purchase and redemption of Creation Units.
Transaction fees will differ among Funds and may vary over time for a
given Fund depending on the estimated trading costs for its portfolio
positions and Composition File, processing costs and other
considerations. Funds that specify greater amounts of cash in their
Composition File may impose higher transaction fees. In addition, Funds
that include in their Composition File instruments that clear through
DTC may impose higher transaction fees than Funds with a Composition
File that consists solely of instruments that clear through NSCC,
because DTC may charge more than NSCC in connection with Creation Unit
transactions.\13\ The transaction fees applicable to each Fund's
purchases and redemptions on a given business day will be disseminated
through the NSCC prior to the open of market trading on that day and
also will be made available to the public each day on a free Web site.
In all cases, the transaction fees will be limited in accordance with
the requirements of the Commission applicable to open-end management
investment companies offering redeemable securities.
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    \13\ Authorized Participants that participate in the CNS System
of the NSCC are expected to be able to use the enhanced NSCC/CNS
process for effecting in-kind purchases and redemptions of ETFs (the
``NSCC Process'') to purchase and redeem Creation Units of Funds
that limit the composition of their baskets to include only NSCC
Process-eligible instruments (generally domestic equity securities
and cash). Because the NSCC Process is generally more efficient than
the DTC clearing process, NSCC is likely to charge a Fund less than
DTC to settle purchases and redemptions of Creation Units.

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NAV-Based Trading
    Because Shares will be listed and traded on the Exchange, Shares
will be available for purchase and sale on an intraday basis. Shares
will be purchased and sold in the secondary market at prices directly
linked to a Fund's next-determined NAV using a new trading protocol
called ``NAV-Based Trading.'' \14\ All bids, offers and execution
prices of Shares will be expressed as a premium/discount (which may be
zero) to the Fund's next-determined NAV (e.g., NAV-$0.01, NAV+$0.01). A
Fund's NAV will be determined each business day, normally as of 4:00
p.m. Eastern Time. Trade executions will be binding at the time orders
are matched on Nasdaq's facilities, with the transaction prices
contingent upon the determination of NAV.
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    \14\ Aspects of NAV-Based Trading are protected intellectual
property subject to issued and pending U.S. patents held by
NextShares Solutions LLC (``NextShares Solutions''), a wholly owned
subsidiary of Eaton Vance Corp. Nasdaq will enter into a license
agreement with NextShares Solutions to allow for NAV-Based Trading
on the Exchange of exchange-traded managed funds that have
themselves entered into license agreements with NextShares
Solutions.
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Trading Premiums and Discounts
    Bid and offer prices for Shares will be quoted throughout the day
relative to NAV. The premium or discount to NAV at which Share prices
are quoted and transactions are executed will vary depending on market
factors, including the balance of supply and demand for Shares among
investors, transaction fees and other costs in connection with creating
and redeeming Creation Units of Shares, the cost and availability of
borrowing Shares, competition among market makers, the Share inventory
positions and inventory strategies of market makers, the profitability
requirements and business objectives of market makers, and the volume
of Share trading. Reflecting such market factors, prices for Shares in
the secondary market may be above, at or below NAV. Funds with higher
transaction fees may trade at wider premiums or discounts to NAV than
other Funds with lower transaction fees, reflecting the added costs to
market makers of managing their Share inventory positions through
purchases and redemptions of Creation Units.
    Because making markets in Shares will be simple to manage and low
risk, competition among market makers seeking to earn reliable, low-
risk profits should enable the Shares to routinely trade at tight bid-
ask spreads and narrow premiums/discounts to NAV. As noted below, each
Fund will maintain a public Web site that will be updated on a daily
basis to show current and historical trading spreads and premiums/
discounts of Shares trading in the secondary market.
Transmitting and Processing Orders
    Member firms will utilize certain existing order types and
interfaces to transmit Share bids and offers to Nasdaq, which will
process Share trades like trades in shares of other listed
securities.\15\ In the systems used to transmit and process
transactions in Shares, a Fund's next-determined NAV will be
represented by a proxy price (e.g., 100.00) and a premium/discount of a
stated amount to the next-determined NAV to be represented by the same
increment/decrement from the proxy price used to denote NAV (e.g., NAV-
$0.01 would be represented as 99.99; NAV+$0.01 as 100.01).
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    \15\ As noted below, all orders to buy or sell Shares that are
not executed on the day the order is submitted will be automatically
cancelled as of the close of trading on such day. Prior to the
commencement of trading in a Fund, the Exchange will inform its
members in an Information Circular of the effect of this
characteristic on existing order types.
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    To avoid potential investor confusion, Nasdaq will work with member
firms and providers of market data services to seek to ensure that
representations of intraday bids, offers and execution prices of Shares
that are made available to the investing public follow the ``NAV-$0.01/
NAV+$0.01'' (or similar) display format. All Shares listed on the
Exchange will have a unique identifier associated with their ticker
symbols, which would indicate that the Shares are traded using NAV-
Based Trading. Nasdaq makes available to member firms and market data
services certain proprietary data feeds that are designed to supplement
the market information disseminated through the consolidated tape
(``Consolidated Tape''). Specifically, the Exchange will use the NASDAQ
Basic and NASDAQ Last Sale data feeds to disseminate intraday price and
quote data for Shares in real time in the ``NAV-$0.01/NAV+$0.01'' (or
similar) display format. Member firms could use the NASDAQ Basic and
NASDAQ Last Sale data feeds to source intraday Share prices for
presentation to the investing public in the ``NAV-$0.01/NAV+$0.01'' (or
similar) display format. Alternatively, member firms could source
intraday Share prices in proxy price format from the Consolidated Tape
and other Nasdaq data feeds (e.g., Nasdaq TotalView and Nasdaq Level 2)
and use a simple algorithm to convert prices into the ``NAV-$0.01/
NAV+$0.01'' (or similar) display format. As noted below, prior to the
commencement of trading in a Fund, the Exchange will inform its members
in an Information Circular of the identities of the specific Nasdaq
data feeds from which intraday Share prices in proxy price format may
be obtained.
Intraday Reporting of Quotes and Trades
    All bids and offers for Shares and all Share trade executions will
be reported intraday in real time by the Exchange to the Consolidated
Tape \16\ and separately disseminated to member firms and market data
services through the Exchange data feeds listed above. The Exchange
will also provide the member firms participating in each Share trade
with a contemporaneous notice of trade execution, indicating the number
of Shares bought or sold and the executed premium/discount to NAV.\17\
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    \16\ Due to systems limitations, the Consolidated Tape will
report intraday execution prices and quotes for Shares using a proxy
price format. As noted, Nasdaq will separately report real-time
execution prices and quotes to member firms and providers of market
data services in the ``NAV-$0.01/NAV+$0.01'' (or similar) display
format, and otherwise seek to ensure that representations of
intraday bids, offers and execution prices for Shares that are made
available to the investing public follow the same display format.
    \17\ All orders to buy or sell Shares that are not executed on
the day the order is submitted will be automatically cancelled as of
the close of trading on such day.
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Final Trade Pricing, Reporting and Settlement
    All executed Share trades will be recorded and stored intraday by
Nasdaq to await the calculation of such Fund's end-of-day NAV and the
determination of final trade pricing. After a Fund's NAV is calculated
and provided to the Exchange, Nasdaq will price each Share trade
entered into during the day at the Fund's NAV plus/minus the trade's
executed premium/discount. Using the final trade price, each executed
Share trade will then be disseminated to member firms and market data
services via an FTP file to be created for exchange-traded managed
funds and confirmed to the member firms participating in the trade to
supplement the previously provided information to include final
pricing.\18\ After the pricing is finalized, Nasdaq will deliver the
Share trading data to NSCC for clearance and settlement, following the
same processes used for the clearance

and settlement of trades in other exchange-traded securities.
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    \18\ File Transfer Protocol (``FTP'') is a standard network
protocol used to transfer computer files on the Internet. Nasdaq
will arrange for the daily dissemination of an FTP file with
executed Share trades to member firms and market data services.
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Availability of Information
    Prior to the commencement of market trading in Shares, each Fund
will be required to establish and maintain a public Web site through
which its current prospectus may be downloaded. The Web site will
include additional Fund information updated on a daily basis, including
the prior business day's NAV, and the following trading information for
such business day expressed as premiums/discounts to NAV: (a) Intraday
high, low, average and closing prices of Shares in Exchange trading;
(b) the midpoint of the highest bid and lowest offer prices as of the
close of Exchange trading, expressed as a premium/discount to NAV (the
``Closing Bid/Ask Midpoint''); and (c) the spread between highest bid
and lowest offer prices as of the close of Exchange trading (the
``Closing Bid/Ask Spread.''). The Web site will also contain charts
showing the frequency distribution and range of values of trading
prices, Closing Bid/Ask Midpoints and Closing Bid/Ask Spreads over
time.
    The Composition File will be disseminated through the NSCC before
the open of trading in Shares on each business day and also will be
made available to the public each day on a free Web site as noted
above. Consistent with the disclosure requirements that apply to
traditional open-end investment companies, a complete list of current
Fund portfolio positions will be made available at least once each
calendar quarter, with a reporting lag of not more than 60 days. Funds
may provide more frequent disclosures of portfolio positions at their
discretion.
    Reports of Share transactions will be disseminated to the market
and delivered to the member firms participating in the trade
contemporaneous with execution. Once a Fund's daily NAV has been
calculated and disseminated, Nasdaq will price each Share trade entered
into during the day at the Fund's NAV plus/minus the trade's executed
premium/discount. Using the final trade price, each executed Share
trade will then be disseminated to member firms and market data
services via an FTP file to be created for exchange-traded managed
funds and confirmed to the member firms participating in the trade to
supplement the previously provided information to include final
pricing.
    Information regarding NAV-based trading prices, best bids and
offers for Shares, and volume of Shares traded will be continuously
available on a real-time basis throughout each trading day on brokers'
computer screens and other electronic services.
Initial and Continued Listing
    Shares will conform to the initial and continued listing criteria
as set forth under Nasdaq Rule 5745. A minimum of 50,000 Shares and no
less than two Creation Units of each Fund will be outstanding at the
commencement of trading on the Exchange. The Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily (on each business day that the New York Stock
Exchange is open for trading) and provided to Nasdaq via the Mutual
Fund Quotation Service (``MFQS'') by the fund accounting agent. As soon
as the NAV is entered into MFQS, Nasdaq will disseminate the value to
market participants and market data vendors via the Mutual Fund
Dissemination Service (``MFDS'') so all firms will receive the NAV per
share at the same time. The Reporting Authority \19\ also will ensure
that the Composition File will implement and maintain, or be subject
to, procedures designed to prevent the use and dissemination of
material non-public information regarding each Fund's portfolio
positions and changes in the positions.
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    \19\ See Nasdaq Rule 5745(c)(4).
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    For each Fund, an estimated value of an individual Share, defined
in Nasdaq Rule 5745(c)(2) as the ``Intraday Indicative Value,'' will be
calculated and disseminated at intervals of not more than 15 minutes
throughout the Regular Market Session \20\ when Shares trade on the
Exchange. The Exchange will obtain a representation from the issuer of
the Shares that the IIV will be calculated on an intraday basis and
provided to Nasdaq for dissemination via the Nasdaq Global Index
Service (``GIDS'').
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    \20\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m. E.T.; (2) Regular Market Session from 9:30 a.m. to 4 p.m. or
4:15 p.m. E.T.; and (3) Post-Market Session from 4 p.m. or 4:15 p.m.
to 8 p.m. E.T.).
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    The IIV will be based on current information regarding the value of
the securities and other assets held by a Fund.\21\ The purpose of the
IIVs is to enable investors to estimate the next-determined NAV so they
can determine the number of Shares to buy or sell if they want to
transact in an approximate dollar amount (e.g., if an investor wants to
acquire approximately $5,000 of a Fund, how many Shares should the
investor buy?).\22\
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    \21\ IIVs disseminated throughout each trading day would be
based on the same portfolio as used to calculate that day's NAV.
Funds will reflect purchases and sales of portfolio positions in
their NAV the next business day after trades are executed.
    \22\ Because, in NAV-Based Trading, prices of executed trades
are not determined until the reference NAV is calculated, buyers and
sellers of Shares during the trading day will not know the final
value of their purchases and sales until the end of the trading day.
A Fund's Registration Statement, Web site and any advertising or
marketing materials will include prominent disclosure of this fact.
Although IIVs may provide useful estimates of the value of intraday
trades, they cannot be used to calculate with precision the dollar
value of the Shares to be bought or sold.
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    If the Adviser is a registered broker-dealer or affiliated with a
broker-dealer, the Adviser has implemented a fire wall with respect to
its relevant broker-dealer personnel or broker-dealer affiliate, as
applicable, regarding access to information concerning the composition
and/or changes to each Fund's portfolio. In the future event that (a)
the Adviser registers as a broker-dealer or becomes newly affiliated
with a broker-dealer, or (b) any new adviser or a sub-adviser to a Fund
is a registered broker-dealer or becomes affiliated with a broker-
dealer, it will implement a fire wall with respect to its relevant
personnel and/or such broker-dealer affiliate, if applicable, regarding
access to information concerning the composition and/or changes to the
relevant Fund's portfolio and will be subject to procedures designed to
prevent the use and dissemination of material non-public information
regarding such portfolio.
Trading Halts
    The Exchange may consider all relevant factors in exercising its
discretion to halt or suspend trading in Shares. Nasdaq will halt
trading in Shares under the conditions specified in Nasdaq Rule 4120
and in Nasdaq Rule 5745(d)(2)(C). Additionally, Nasdaq may cease
trading Shares if other unusual conditions or circumstances exist
which, in the opinion of Nasdaq, make further dealings on Nasdaq
detrimental to the maintenance of a fair and orderly market. To manage
the risk of a non-regulatory Share trading halt, Nasdaq has in place
back-up processes and procedures to ensure orderly trading. Because, in
NAV-Based Trading, all trade execution prices are linked to end-of-day
NAV, buyers and sellers of Shares should be less exposed to risk of
loss due to intraday trading halts than buyers and sellers of
conventional exchange-traded funds (``ETFs'') and other exchange-traded
securities.
Trading Rule
    Nasdaq deems Shares to be equity securities, thus rendering trading
in

Shares to be subject to Nasdaq's existing rules governing the trading
of equity securities. Nasdaq will allow trading in Shares from 9:30
a.m. until 4:00 p.m. Eastern Time.
    Every order to trade Shares of the Funds is subject to the proxy
price protection threshold of plus/minus $1.00, which determines the
lower and upper threshold for the life of the order and whereby the
order will be cancelled at any point if it exceeds $101.00 or falls
below $99.00, the established thresholds.\23\ With certain exceptions,
each order also must contain the applicable order attributes, including
routing instructions and time-in-force information, as described in
Nasdaq Rule 4703.\24\
---------------------------------------------------------------------------

    \23\ See Nasdaq Rule 5745(h).
    \24\ See Nasdaq Rule 5745(b)(6).
---------------------------------------------------------------------------

Surveillance
    The Exchange represents that trading in Shares will be subject to
the existing trading surveillances, administered by both Nasdaq and the
Financial Industry Regulatory Authority, Inc. (``FINRA'') on behalf of
the Exchange, which are designed to detect violations of Exchange rules
and applicable federal securities laws.\25\ The Exchange represents
that these procedures are adequate to properly monitor trading of
Shares on the Exchange and to deter and detect violations of Exchange
rules and applicable federal securities laws.
---------------------------------------------------------------------------

    \25\ FINRA provides surveillance of trading on the Exchange
pursuant to a regulatory services agreement. The Exchange is
responsible for FINRA's performance under this regulatory services
agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations.
    FINRA, on behalf of the Exchange, will communicate as needed with
other markets and other entities that are members of the Intermarket
Surveillance Group (``ISG'') \26\ regarding trading in Shares, and in
exchange-traded securities and instruments held by the Funds (to the
extent such exchange-traded securities and instruments are known
through the publication of the Composition File and periodic public
disclosures of a Fund's portfolio holdings), and FINRA may obtain
trading information regarding such trading from other markets and other
entities. In addition, the Exchange may obtain information regarding
trading in Shares, and in exchange-traded securities and instruments
held by the Funds (to the extent such exchange-traded securities and
instruments are known through the publication of the Composition File
and periodic public disclosures of a Fund's portfolio holdings), from
markets and other entities that are members of ISG, which includes
securities and futures exchanges, or with which the Exchange has in
place a comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    \26\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of a
Fund's portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material non-public information by its employees.
Information Circular
    Prior to the commencement of trading in a Fund, the Exchange will
inform its members in an Information Circular of the special
characteristics and risks associated with trading the Shares.
Specifically, the Information Circular will discuss the following: (1)
The procedures for purchases and redemptions of Shares in Creation
Units (and noting that Shares are not individually redeemable); (2)
Nasdaq Rule 2111A, which imposes suitability obligations on Nasdaq
members with respect to recommending transactions in Shares to
customers; (3) how information regarding the IIV and Composition File
is disseminated; (4) the requirement that members deliver a prospectus
to investors purchasing Shares prior to or concurrently with the
confirmation of a transaction; and (5) information regarding NAV-Based
Trading protocols.
    As noted above, all orders to buy or sell Shares that are not
executed on the day the order is submitted will be automatically
cancelled as of the close of trading on such day. The Information
Circular will discuss the effect of this characteristic on existing
order types. The Information Circular also will identify the specific
Nasdaq data feeds from which intraday Share prices in proxy price
format may be obtained.
    In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Funds. Members purchasing Shares from a Fund for
resale to investors will deliver a summary prospectus to such
investors. The Information Circular will also discuss any exemptive,
no-action and interpretive relief granted by the Commission from any
rules under the Act.
    The Information Circular also will reference that the Funds are
subject to various fees and expenses described in the Registration
Statements. The Information Circular will also disclose the trading
hours of the Shares and the applicable NAV calculation time for the
Shares. The Information Circular will disclose that information about
the Shares will be publicly available on the Fund's Web site.
    Information regarding Fund trading protocols will be disseminated
to Nasdaq members in accordance with current processes for newly listed
products. Nasdaq intends to provide its members with a detailed
explanation of NAV-Based Trading through a Trading Alert issued prior
to the commencement of trading in Shares on the Exchange.
    All statements and representations made in this filing regarding
(a) the description of the Funds' portfolios, (b) limitations on
portfolio holdings or reference assets, or (c) the applicability of
Exchange rules and surveillance procedures shall constitute continued
listing requirements for listing the Shares of the Funds on the
Exchange. The issuer has represented to the Exchange that it will
advise the Exchange of any failure by any Fund to comply with the
continued listing requirements, and, pursuant to its obligations under
Section 19(g)(1) of the Act, the Exchange will monitor for compliance
with the continued listing requirements. If a Fund is not in compliance
with the applicable listing requirements, the Exchange will commence
delisting procedures under Nasdaq Rule 5800, et. seq.
2. Statutory Basis
    Nasdaq believes that the proposal is consistent with Section 6(b)
of the Act \27\ in general, and Section 6(b)(5) of the Act \28\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78f(b).
    \28\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares would be listed and traded on the Exchange pursuant to the
initial and

continued listing criteria in Nasdaq Rule 5745. The Exchange believes
that its surveillance procedures are adequate to properly monitor the
trading of Shares on Nasdaq and to deter and detect violations of
Exchange rules and the applicable federal securities laws. If the
Adviser is a registered broker-dealer or affiliated with a broker-
dealer, the Adviser has implemented a ``fire wall'' between the Adviser
and the relevant broker-dealer personnel or broker-dealer affiliate
with respect to access to information concerning the composition and/or
changes to the Funds' portfolio holdings. The Exchange may obtain
information via ISG from other exchanges that are members of ISG or
with which the Exchange has entered into a comprehensive surveillance
sharing agreement, to the extent necessary.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest.
The Exchange will obtain a representation from each issuer of Shares
that the NAV per Share will be calculated on each business day that the
New York Stock Exchange is open for trading and that the NAV will be
made available to all market participants at the same time. In
addition, a large amount of information would be publicly available
regarding the Funds and the Shares, thereby promoting market
transparency.
    Prior to the commencement of market trading in Shares, the Funds
will be required to establish and maintain a public Web site through
which its current prospectus may be downloaded. The Web site will
display additional Fund information updated on a daily basis, including
the prior business day's NAV, and the following trading information for
such business day expressed as premiums/discounts to NAV: (a) Intraday
high, low, average and closing prices of Shares in Exchange trading;
(b) the Closing Bid/Ask Midpoint; and (c) the Closing Bid/Ask Spread.
The Web site will also contain charts showing the frequency
distribution and range of values of trading prices, Closing Bid/Ask
Midpoints, and Closing Bid/Ask Spreads over time. The Composition File
will be disseminated through the NSCC before the open of trading in
Shares on each business day and also will be made available to the
public each day on a free Web site. The Exchange will obtain a
representation from the issuer of the Shares that the IIV will be
calculated and disseminated on an intraday basis at intervals of not
more than 15 minutes during trading on the Exchange and provided to
Nasdaq for dissemination via GIDS. A complete list of current portfolio
positions for the Funds will be made available at least once each
calendar quarter, with a reporting lag of not more than 60 days. Funds
may provide more frequent disclosures of portfolio positions at their
discretion.
    Transactions in Shares will be reported to the Consolidated Tape at
the time of execution in proxy price format and will be disseminated to
member firms and market data services through Nasdaq's trading service
and market data interfaces, as defined above. Once each Fund's daily
NAV has been calculated and the final price of its intraday Share
trades has been determined, Nasdaq will deliver a confirmation with
final pricing to the transacting parties. At the end of the day, Nasdaq
will also post a newly created FTP file with the final transaction data
for the trading and market data services. The Exchange expects that
information regarding NAV-based trading prices and volumes of Shares
traded will be continuously available on a real-time basis throughout
each trading day on brokers' computer screens and other electronic
services. Because Shares will trade at prices based on the next-
determined NAV, investors will be able to buy and sell individual
Shares at a known premium or discount to NAV that they can limit by
transacting limit orders at the time of order entry. Trading in Shares
will be subject to Nasdaq Rules 5745(d)(2)(B) and (C), which provide
for the suspension of trading or trading halts under certain
circumstances, including if, in the view of the Exchange, trading in
Shares becomes inadvisable.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
the Funds, which seek to provide investors with access to a broad range
of actively managed investment strategies in a structure that offers
the cost and tax efficiencies and shareholder protections of ETFs,
while removing the requirement for daily portfolio holdings disclosure
to ensure a tight relationship between market trading prices and NAV.
    For the above reasons, Nasdaq believes the proposed rule change is
consistent with the requirements of Section 6(b)(5) of the Act.

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

    The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. In fact, the
Exchange believes that the introduction of the Funds would promote
competition by making available to investors a broad range of actively
managed investment strategies in a structure that offers the cost and
tax efficiencies and shareholder protections of ETFs, while removing
the requirement for daily portfolio holdings disclosure to ensure a
tight relationship between market trading prices and NAV. Moreover, the
Exchange believes that the proposed method of Share trading would
provide investors with transparency of trading costs, and the ability
to control trading costs using limit orders, that is not available for
conventionally traded ETFs.
    These developments could significantly enhance competition to the
benefit of the markets and investors.

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

    No written comments were either solicited or received.

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

    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 self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change 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
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2016-134 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities

and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2016-134. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2016-134 and should
be submitted on or before November 7, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-24978 Filed 10-14-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 64 (Monday, April 4, 2016)]
[Notices]
[Pages 19165-19166]
[FR Doc No: 2016-07529]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 14746-000]

Energy Resources USA, Inc.; Notice of Preliminary Permit
Application Accepted for Filing and Soliciting Comments and Motions To
Intervene

    On December 22, 2015, Energy Resources USA, Inc. (Energy Resources)
filed an application for a preliminary permit, pursuant to section 4(f)
of the Federal Power Act (FPA), proposing to study the feasibility of
the Taylorsville Lake Dam Hydroelectric Project (Taylorsville Project
or project) to be located at the U.S. Army Corps of Engineers'
Taylorsville Lake Dam on the Salt River in Spencer County, Kentucky.
The sole purpose of a preliminary permit, if issued, is to grant the
permit holder priority to file a license application during the permit
term. A preliminary permit does not authorize the permit holder to
perform any land-disturbing activities or otherwise enter upon lands or
waters owned by others without the owners' express permission.
    The proposed project would consist of the following: (1) A control
structure with one spill gate; (2) one 8-foot-diameter, 120-foot-long
penstock with a butterfly valve; (3) a bifurcation structure; (4) two
5.5-foot-diameter, 32-foot-long penstocks; (5) a powerhouse containing
two generating units with a total capacity of 3 megawatts; (6) a 90-
foot-long, 60-foot-wide tailrace; (7) a substation; and (8) a 2.5-mile-
long, 69 kV transmission line. The proposed project would have an
estimated average annual generation of 9,500 megawatt-hours, and
operate as directed by the Corps.
    Applicant Contact: Mr. Ander Gonzalez, Energy Resources USA Inc.,
2655 Le Jeune Road, Suite 804, Coral Gables, Florida 33134; Phone:
(954) 248-8425; Email<EMAIL_ADDRESS>    FERC Contact: Christiane Casey; phone:<PHONE_NUMBER>.
    Deadline for filing comments and motions to intervene: 60 days from
the issuance of this notice.
    The Commission strongly encourages electronic filing. Please file
comments and motions to intervene using the Commission's eFiling system
at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can submit
brief comments up to 6,000 characters, without prior registration,
using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information at the
end

of your comments. For assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>(866) 208-3676 (toll free), or (202) 502-
8659 (TTY). In lieu of electronic filing, please send a paper copy to:
Secretary, Federal Energy Regulatory Commission, 888 First Street NE.,
Washington, DC 20426. The first page of any filing should include
docket number P-14746-000.
    More information about this project, including a copy of the
application, can be viewed or printed on the ``eLibrary'' link of the
Commission's Web site at http://www.ferc.gov/docs-filing/elibrary.asp.
Enter the docket number (P-14746) in the docket number field to access
the document. For assistance, contact FERC Online Support.

    Dated: March 29, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-07529 Filed 4-1-16; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 240 (Friday, December 13, 2013)]
[Notices]
[Page 75919]
[FR Doc No: 2013-29770]

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

[ER-FRL-9012-5]

Environmental Impact Statements; Notice of Availability

    Responsible Agency: Office of Federal Activities, General
Information<PHONE_NUMBER> or http://www.epa.gov/compliance/nepa/.

Weekly receipt of Environmental Impact Statements filed 12/02/2013
through 12/06/2013 pursuant to 40 CFR 1506.9.

 Notice

    Section 309(a) of the Clean Air Act requires that EPA make public
its comments on EISs issued by other Federal agencies. EPA's comment
letters on EISs are available at: http://www.epa.gov/compliance/nepa/eisdata.html.

EIS No. 20130356, Final EIS, FRA, MS, Tupelo Railroad Relocation
Planning and Environmental Study, Review Period Ends: 01/13/2014,
Contact: John Winkle<PHONE_NUMBER>
EIS No. 20130357, Final EIS, FHWA, VA, Interstate 66 Corridor Tier 1
Final Environmental Impact Statement and Tier 1 Record of Decision,
Contact: John Simkins<PHONE_NUMBER>. Under MAP-21 section 1319, FHWA has
issued a single FEIS and ROD. Therefore, the 30-day wait/review period
under NEPA does not apply to this action
EIS No. 20130358, Final EIS, FHWA, VA, Interstate 64 Peninsula, from
Interstate 95 in the City of Richmond to Interstate 664, Review Period
Ends: 01/27/2014, Contact: John Simkins<PHONE_NUMBER>
EIS No. 20130359, Final EIS, AFS, CA, Kelsey Peak Timber Sale and
Fuelbreak Project, Review Period Ends: 01/27/2014, Contact: Jeff Jones
707-441-3553
EIS No. 20130360, Final EIS, USFS, AZ, Rosemont Copper Project,
Proposed Mining Operation, Review Period Ends: 01/29/2014, Contact:
Mindy Vogel<PHONE_NUMBER>
EIS No. 20130361, Draft Supplement, USACE, MN, NorthMet Mining Project
and Land Exchange, Comment Period Ends: 03/13/2014, Contact: Douglas
Bruner<PHONE_NUMBER>. The U.S. Army Corps of Engineers and the U.S.
Department of Agriculture's Forest Service are joint lead agencies for
the above project.
EIS No. 20130362, Final EIS, USFS, MT, Montana Snowbowl Expansion,
Review Period Ends: 01/21/2014, Contact: Tami Paulsen<PHONE_NUMBER>
EIS No. 20130363, Draft EIS, DOI, 00, PROGRAMMATIC--Deepwater Horizon
Oil Spill Natural Resources Damage Assessment, Phase III Early
Restoration Plan, Comment Period Ends: 02/04/2014, Contact: Nanciann
Regalado<PHONE_NUMBER>
EIS No. 20130364, Final EIS, USFS, OR, Tollgate Fuels Reduction, Review
Period Ends: 01/13/2014, Contact: Kimpton Cooper<PHONE_NUMBER>
EIS No. 20130365, Draft EIS, NMFS, CA, Bay Delta Conservation Plan,
Comment Period Ends: 04/14/2014, Contact: Ryan Wulff<PHONE_NUMBER>
    The U.S. Department of the Interior's Bureau of Reclamation and
Fish and Wildlife Service, the U.S. Department of Commerce's National
Marine Fisheries Service are joint lead agencies for the above project.
EIS No. 20130366, Draft EIS, USACE, LA, PROGRAMMATIC--Southwest Coastal
Louisiana Project, Comment Period Ends: 01/27/2014, Contact: Nathan
Dayan<PHONE_NUMBER>

    Dated: December 10, 2013.
Cliff Rader,
Director, NEPA Compliance Division, Office of Federal Activities.
[FR Doc. 2013-29770 Filed 12-12-13; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 80, Number 27 (Tuesday, February 10, 2015)]
[Proposed Rules]
[Pages 7394-7397]
[FR Doc No: 2015-02319]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2014-1019]
RIN 1625-AA00

Safety Zone; Memphis Port Area Multiagency Mass Rescue Operations
and Medical Surge Full-Scale Exercise, Lower Mississippi River, Mile
Marker, (MM) 745.0 to (MM) 736.0, Memphis, TN

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Coast Guard is proposing to establish a temporary Safety
Zone for all waters of the Lower Mississippi River, from MM 745.0 to MM
736.0. This safety zone is needed to protect persons and vessels from
the potential safety hazards associated with a full-scale multiagency
mass rescue exercise. Entry into this zone is prohibited to all
vessels, mariners, and persons unless specifically authorized by the
Captain of the Port (COTP), Lower Mississippi River or a designated
representative.

DATES: Comments and related material must be received by the Coast
Guard on or before February 25, 2015.

ADDRESSES: You may submit comments identified by docket number using
any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail or Delivery: Docket Management Facility (M-30), U.S.
Department of Transportation, West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC 20590-0001. Deliveries
accepted between 9 a.m. and 5 p.m., Monday through Friday, except
federal holidays. The telephone number is<PHONE_NUMBER>. See the
``Public Participation and Request for Comments'' portion of the
SUPPLEMENTARY INFORMATION section below for further instructions on
submitting comments. To avoid duplication, please use only one of these
three methods.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email LT Tyrone Conner, Sector Lower Mississippi River
Waterways Management Division, U.S. Coast Guard; telephone (901) 521-
4725, email<EMAIL_ADDRESS>If you have questions on viewing
or submitting material to the docket, call Cheryl F. Collins, Program
Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Acronyms

DHS Department of Homeland Security
FR Federal Register
MM mile marker
NPRM Notice of Proposed Rulemaking
SAR Search and Rescue

A. Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided.

1. Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation. You may submit your comments and material online at
http://www.regulations.gov, or by fax, mail, or hand delivery, but
please use only one of these means. If you submit a comment online, it
will be considered received by the Coast Guard when you successfully
transmit the comment. If you fax, hand deliver, or mail your comment,
it will be considered as having been received by the Coast Guard when
it is received at the Docket Management Facility. We recommend that you
include your name and a mailing address, an email address, or a
telephone number in the body of your document so that we can contact
you if we have questions regarding your submission.
    To submit your comment online, go to http://www.regulations.gov,
type the docket number [USCG-2014-1019] in the ``SEARCH'' box and click
``SEARCH.'' Click on ``Submit a Comment'' on the line associated with
this rulemaking.
    If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit comments by mail and would
like to know that they reached the Facility, please enclose a stamped,
self-addressed postcard or envelope. We will consider all comments and
material received during the comment period and may change the rule
based on your comments.

2. Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
type the docket number (USCG-2014-1019) in the ``SEARCH'' box and click
``SEARCH.'' Click on Open Docket Folder on the line associated with
this rulemaking. You may also visit the Docket Management Facility in
Room W12-140 on the ground floor of the Department of Transportation
West Building, 1200 New Jersey Avenue SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays.

3. Privacy Act

    Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

4. Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for one on or before February 20, 2015, using one of the
methods specified under ADDRESSES. Please explain why you believe a
public meeting would be beneficial.

B. Regulatory History and Information

    The Coast Guard has a long history working with local, state, and
federal agencies in areas to improve emergency response, to prepare for
events that call for swift action, and to protect our nation. The Coast
Guard is proposing to establish this safety zone on the waters of the
Lower Mississippi River in Memphis, Tennessee for the Memphis Port Area
Multiagency Mass Rescue Operations and Medical Surge Full-Scale
Exercise. The full-scale exercise is scheduled to take place from 9:00
a.m. to 12:00 p.m. on April 22, 2015 and afford an opportunity for U.S.
Coast Guard Sector Lower Mississippi River, City of Memphis Office of
Emergency Management, Memphis Fire Department, Memphis Police
Department, Shelby County Sheriff's Office, Shelby County Office of
Preparedness, Shelby County Health Department, DeSoto County Sherriff
Office SAR Unit, Tipton County Emergency Management Agency, West
Memphis Fire Department, Tennessee Wildlife Resources Agency, Tennessee
Emergency Management Agency, Fullen Dock and Warehouse, Lucy Woodstock
Marine Terminal, and Wepfer Marine to coordinate, communicate, and
practice emergency response techniques for the safety of all Lower
Mississippi River. This proposed rule is necessary to protect the
safety of the participants, spectators, commercial traffic, and the
general public on the navigable waters of the United States during the
exercise.

C. Basis and Purpose

    The legal basis and authorities for this rule are found in 33
U.S.C. 1231, 46 U.S.C. Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 33
CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Public Law 107-295, 116 Stat.
2064; Department of Homeland Security Delegation No. 0170.1, which
collectively authorize the Coast Guard to propose, establish, and
define regulatory safety zones. The purpose of this proposed safety
zone is to protect public boaters and their vessels from potential
safety hazards associated with the full-scale exercise on the Lower
Mississippi River, Memphis, Tennessee.

D. Discussion of Proposed Rule

    This proposed rule is necessary to establish a Safety Zone that
will encompass certain waters of the Lower Mississippi River in
Memphis, Tennessee. The proposed Safety Zone regulations will be
enforced from approximately 9:00 a.m. to 12:00 p.m. for approximately 3
hours on April 22, 2015. The proposed Safety Zone will establish from
Mile Marker (MM) 745.0 to (MM) 736.0, where all persons and vessels,
except those persons and vessels participating in the full-scale
exercise and those vessels enforcing the areas, are prohibited from
entering, transiting through, anchoring in, or remaining within.
    Persons and vessels may request authorization to enter, transit
through, anchor in, or remain within the enforcement areas by
contacting the Captain of the Port Lower Mississippi River by telephone
at<PHONE_NUMBER>, or a designated representative via VHF radio on
channel 16. If authorization to enter, transit through, anchor in, or
remain within the enforcement areas is granted by the Captain of the
Port Lower Mississippi River or a designated representative, all
persons and vessels receiving such authorization must comply with the
instructions of the Captain of the Port Lower Mississippi River or a
designated representative.

E. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on a number of these statutes or executive orders.

1. Regulatory Planning and Review

    This proposed rule is not a significant regulatory action under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
as supplemented by Executive Order 13563, Improving Regulation and
Regulatory Review, and does not require an assessment of potential
costs and benefits under section 6(a)(3) of Executive Order 12866 or
under section 1 of Executive Order 13563. The Office of Management and
Budget has not reviewed it under those Orders. The temporary safety
zone listed in this proposed rule will only restrict vessel traffic
from entering, transiting, or anchoring within a small portion of the
Lower Mississippi River. The effect of this regulation will not be
significant for several reasons: (1) This rule will only affect vessel
traffic for a short duration; (2) vessels may request permission from
the COTP to deviate from the restriction and transit through the safety
zone; and (3) the impacts on routine navigation are expected to be
minimal because notifications to the marine community will be made
through local notice to mariners (LNM) and broadcast notice to mariners
(BNM). Therefore, these notifications will allow the public to plan
operations around the safety zone and its enforcement times.

2. Impact on Small Entities

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as
amended, requires federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this
proposed rule will not have a significant economic impact on a
substantial number of small entities.
    This rule will affect the following entities, some of which may be
small entities: The owners or operators of vessels intending to transit
the Lower Mississippi River from MM 745.0 to MM 736.0 effective from
9:00 a.m. to 12:00 p.m. on April 22, 2015. This safety zone will not
have a significant economic impact on a substantial number of small
entities because this rule will only be in effect during scheduled
full-scale multiagency mass rescue exercise time for approximately 3
hours on the day the event is occurring. Traffic in this area is
limited to almost entirely recreational vessels and commercial towing
vessels. Notifications to the marine community will be made through
BNMs and electronic mail. Notices of changes to the safety zone and
scheduled effective times and enforcement periods will also be made.
Deviation from the restrictions may be requested from the COTP or
designated representative and will be considered on a case-by-case
basis.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

3. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule. If the rule would affect
your small business, organization, or governmental jurisdiction and you
have questions concerning its provisions or options for compliance,
please contact the person listed in the FOR FURTHER INFORMATION
CONTACT, above. The Coast Guard will not retaliate against small
entities that question or complain about this proposed rule or any
policy or action of the Coast Guard.

4. Collection of Information

    This proposed rule will not call for a new collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520.).

5. Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has 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. We have analyzed this proposed rule under that Order and
determined that this rule does not have implications for federalism.

6. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the ``For Further
Information Contact'' section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

7. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this proposed rule would not
result in such expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

8. Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

9. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

10. Protection of Children From Environmental Health Risks

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

11. Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would 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.

12. Energy Effects

    This proposed rule is not a ``significant energy action'' under
Executive Order 13211, Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use.

13. Technical Standards

    This proposed rule does not use technical standards. Therefore, we
did

not consider the use of voluntary consensus standards.

14. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have made a preliminary determination that this action is one of a
category of actions that do not individually or cumulatively have a
significant effect on the human environment. This proposed rule
involves establishing a temporary safety zone in the Lower Mississippi
River, (MM) 745.0 to (MM) 736.0. This action is necessary to protect
persons and property during the full-scale exercise. This rule is
categorically excluded from further review under paragraph 34(g) of
Figure 2-1 of the Commandant Instruction. A preliminary environmental
analysis checklist supporting this determination and a Categorical
Exclusion Determination are available in the docket where indicated
under ADDRESSES. We seek any comments or information that may lead to
the discovery of a significant environmental impact from this proposed
rule.

List of Subjects in 33 CFR Part 165

    Marine safety, Navigation (water), Reporting and recordkeeping
requirements, Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority: 33 U.S.C. 1231; 46 U.S.C. Chapter 701, 3306, 3703; 50
U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, 160.5; Pub. L. 107-
295, 116 Stat. 2064; Department of Homeland Security Delegation No.
0170.1.

0
2. A new temporary Sec.  165.T08-1019 is added to read as follows:

Sec.  165.T08-1019  Safety Zone; Memphis Port Area Multiagency Mass
Rescue Operations and Medical Surge Full-Scale Exercise, Lower
Mississippi River, Mile Marker, (MM) 745.0 to (MM) 736.0, Memphis, TN.

    (a) Location. The following area will be under a temporary safety
zone: Waters of the Lower Mississippi River, from MM 745.0 to MM 736.0.
    (b) Effective date and times. This safety zone will be effective
from 9:00 a.m. to 12:00 p.m. on April 22, 2015.
    (c) Regulations. (1) In accordance with the general regulations in
Sec.  165.23 of this part, entry into this area is prohibited unless
authorized by the Captain of the Port (COTP) Lower Mississippi River or
a designated representative.
    (2) Spectator vessels may safely transit outside the safety zone at
a minimum safe speed, but may not anchor, block, loiter, or impede
participants or official patrol vessels.
    (3) Vessels requiring entry into or passage through the safety zone
must request permission from the COTP Lower Mississippi River or a
designated representative. They may be contacted on VHF-FM channels 16
or by telephone at<PHONE_NUMBER>.
    (4) All vessels shall comply with the instructions of the COTP
Lower Mississippi River and designated personnel. Designated personnel
include commissioned, warrant, and petty officers of the U.S. Coast
Guard.
    (d) Informational Broadcasts: The Captain of the Port, Lower
Mississippi River or a designated representative will inform the public
through broadcast notices to mariners (BNM) of the effective period for
the safety zone and of any changes in the effective period, enforcement
times, or size of the safety zone.

    Dated: January 16, 2015.
T.J. Wendt,
Captain, U.S. Coast Guard, Captain of the Port, Lower Mississippi
River.
[FR Doc. 2015-02319 Filed 2-9-15; 8:45 am]
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[Federal Register Volume 86, Number 139 (Friday, July 23, 2021)]
[Proposed Rules]
[Pages 38950-38952]
[FR Doc No: 2021-15555]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2021-0578; Project Identifier 2018-SW-084-AD]
RIN 2120-AA64

Airworthiness Directives; Leonardo S.p.a. Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain Leonardo S.p.a Model AW169 helicopters. This proposed AD
was prompted by reports of in-flight pilot collective stick
oscillation. This proposed AD would require a one-time measurement of
the friction of the pilot collective stick assembly to verify that it
is within the allowable range and, depending on findings, making an
adjustment to restore the acceptable level of friction, as specified in
a European Aviation Safety Agency (now European Union Aviation Safety
Agency) (EASA) AD, which is proposed for incorporation by reference
(IBR). The FAA is proposing this AD to address the unsafe condition on
these products.

DATES: The FAA must receive comments on this proposed AD by September
7, 2021.

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 https://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: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For EASA material that is proposed for IBR in this AD, contact
EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221
8999 000; email<EMAIL_ADDRESS>internet www.easa.europa.eu. You
may find this IBR material on the EASA website at https://ad.easa.europa.eu. You may view the EASA material at the FAA, Office of
the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-
321, Fort Worth, TX 76177. For information on the availability of the
EASA material at the FAA, call<PHONE_NUMBER>. The EASA material is
also available at https://www.regulations.gov by searching for and
locating Docket No. FAA-2021-0578.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2021-0578; or in person at
Docket Operations between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket contains this NPRM, the EASA AD,
any comments received, and other information. The street address for
Docket Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Darren Gassetto, Aerospace Engineer,
COS Program Management Section, Operational Safety Branch, Compliance &
Airworthiness Division, FAA, 1600 Stewart Ave., Suite 410, Westbury, NY
11590; telephone<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2021-0578; Project Identifier
2018-SW-084-AD'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
this proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this NPRM.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this 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 CBI should be sent to
Darren Gassetto, Aerospace Engineer, COS Program Management Section,
Operational Safety Branch, Compliance & Airworthiness Division, FAA,
1600 Stewart Ave., Suite 410, Westbury, NY 11590; telephone (516) 228-
7323; email<EMAIL_ADDRESS>Any commentary that the FAA
receives that is not specifically designated as CBI will

be placed in the public docket for this rulemaking.

Background

    EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2018-0203, dated September 12, 2018
(EASA AD 2018-0203), to correct an unsafe condition for Leonardo
S.p.A., formerly Finmeccanica S.p.A. and AgustaWestland S.p.A., Model
AW169 helicopters, all serial numbers equipped with pilot collective
stick assemblies having part number (P/N) 6F6711A07832 or P/N
6F6711A07831.
    This proposed AD was prompted by reports of in-flight pilot
collective stick oscillation. Based on the investigation results, it
was determined that this was likely due to an incorrect adjustment on
the collective stick fixed friction during helicopter assembly, or
during a maintenance action. Incorrect adjustment of the collective
friction of the flight control system could lead to a reduction in the
safety margins of controllability of an affected helicopter. To address
this issue, EASA issued AD 2017-0137, dated August 1, 2017, to require
a one-time measurement of the collective stick fixed friction value.
After that EASA AD was issued an additional event was reported
involving a helicopter that was not affected by EASA AD 2017-0137. EASA
AD 2018-0203 supersedes EASA AD 2017-0137. The FAA is proposing this AD
to address incorrect adjustment of the pilot collective stick fixed
friction. The unsafe condition, if not addressed, could result in
reduced controllability of the helicopter, and subsequent damage to the
helicopter and injury to occupants. See EASA AD 2018-0203 for
additional background information.

Related Service Information Under 1 CFR Part 51

    EASA AD 2018-0203 requires a one-time measurement of the friction
of the pilot collective stick assembly to verify that it is within the
allowable range specified in the service information (collective up and
collective down directions 9.00/18.00N (Newton) or 2.02/4.05 lbf (pound
force)) and, depending on the findings, accomplishment of the
corrective action. The corrective action is making an adjustment to the
pilot collective stick assembly to restore the acceptable level of
friction. EASA AD 2018-0203 also specifies that after installation of
an affected part, or following maintenance of an affected part that
involves removal from the helicopter and re-installation, before the
next flight after the part installation, the collective fixed friction
must be measured and, depending on the findings, the corrective action
must be accomplished.
    This material is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section.

FAA's Determination and Requirements of This Proposed AD

    These helicopters have been approved by EASA and are approved for
operation in the United States. Pursuant to the FAA's bilateral
agreement with the European Union, EASA has notified the FAA about the
unsafe condition described in its AD. The FAA is proposing this AD
after evaluating all known relevant information and determining that
the unsafe condition described previously is likely to exist or develop
on other helicopters of the same type design.

Proposed AD Requirements in This NPRM

    This proposed AD would require accomplishing the actions specified
in EASA AD 2018-0203, described previously, as incorporated by
reference, except for any differences identified as exceptions in the
regulatory text of this proposed AD.

Explanation of Required Compliance Information

    In the FAA's ongoing efforts to improve the efficiency of the AD
process, the FAA developed a process to use certain civil aviation
authority (CAA) ADs as the primary source of information for compliance
with requirements for corresponding FAA ADs. The FAA has been
coordinating this process with manufacturers and CAAs. As a result,
EASA AD 2018-0203 will be incorporated by reference in the FAA final
rule. This proposed AD would, therefore, require compliance with EASA
AD 2018-0203 in its entirety, through that incorporation, except for
any differences identified as exceptions in the regulatory text of this
proposed AD. Using common terms that are the same as the heading of a
particular section in EASA AD 2018-0203 does not mean that operators
need comply only with that section. For example, where the AD
requirement refers to ``all required actions and compliance times,''
compliance with this AD requirement is not limited to the section
titled ``Required Action(s) and Compliance Time(s)'' in EASA AD 2018-
0203. Service information specified in EASA AD 2018-0203 that is
required for compliance with it will be available at https://www.regulations.gov by searching for and locating Docket No. FAA-2021-
0578 after the FAA final rule is published.

Costs of Compliance

    The FAA estimates that this AD, if adopted as proposed, would
affect 6 helicopters of U.S. registry. The FAA estimates the following
costs to comply with this proposed AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Functional check--friction measurement  2 work-hours x $85 per                $0            $170          $1,020
                                         hour = $170.
----------------------------------------------------------------------------------------------------------------

    The FAA estimates the following costs to do any necessary
adjustment that would be required based on the results of the proposed
inspection. The agency has no way of determining the number of
helicopters that might need this adjustment:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                   Action                                 Labor cost                Parts cost        product
----------------------------------------------------------------------------------------------------------------
Adjustment.................................  2 work-hours x $85 per hour = $170.              $0            $170
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is 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

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would 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 this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would 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.

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13   [Amended]

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

Leonardo S.p.a.: Docket No. FAA-2021-0578; Project Identifier 2018-
SW-084-AD.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) by September 7, 2021.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Leonardo S.p.a. Model AW169 helicopters,
certificated in any category, with an affected part as identified in
European Aviation Safety Agency (now European Union Aviation Safety
Agency) (EASA) AD 2018-0203, dated September 12, 2018 (EASA AD 2018-
0203) installed.

(d) Subject

    Joint Aircraft Service Component (JASC) Codes: 6700, Rotorcraft
Flight Control; 6710, Main Rotor Control.

(e) Unsafe Condition

    This AD was prompted by reports of in-flight pilot collective
stick oscillation. The FAA is issuing this AD address incorrect
adjustment of the pilot collective stick fixed friction. The unsafe
condition, if not addressed, could result in reduced controllability
of the helicopter, and subsequent damage to the helicopter and
injury to occupants.

(f) Compliance

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

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, EASA AD 2018-0203.

(h) Exceptions to EASA AD 2018-0203

    (1) Where EASA AD 2018-0203 refers to flight hours (FH), this AD
requires using hours time-in-service.
    (2) Where EASA AD 2018-0203 refers to its effective date, this
AD requires using the effective date of this AD.
    (3) The ``Remarks'' section of EASA AD 2018-0203 does not apply
to this AD.

(i) No Reporting Requirement

    Although the service information referenced in EASA AD 2018-0203
specifies to submit certain information to the manufacturer, this AD
does not include that requirement.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, International Validation Branch, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the manager of the International Validation Branch, send
it to the attention of the person identified in paragraph (k)(2) 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.

(k) Related Information

    (1) For EASA AD 2018-0203, contact EASA, Konrad-Adenauer-Ufer 3,
50668 Cologne, Germany; telephone +49 221 8999 000; email
<EMAIL_ADDRESS>internet www.easa.europa.eu. You may view this
material at the FAA, Office of the Regional Counsel, Southwest
Region, 10101 Hillwood Pkwy., Room 6N-321, Fort Worth, TX 76177. For
information on the availability of this material at the FAA, call
(817) 222-5110. This material may be found in the AD docket at
https://www.regulations.gov by searching for and locating Docket No.
FAA-2021-0578.
    (2) For more information about this AD, contact Darren Gassetto,
Aerospace Engineer, COS Program Management Section, Operational
Safety Branch, Compliance & Airworthiness Division, FAA, 1600
Stewart Ave., Suite 410, Westbury, NY 11590; telephone (516) 228-
7323; email<EMAIL_ADDRESS>
    Issued on July 16, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2021-15555 Filed 7-22-21; 8:45 am]
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