[Federal Register Volume 84, Number 171 (Wednesday, September 4, 2019)]
[Proposed Rules]
[Pages 46498-46501]
[FR Doc No: 2019-19048]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

Docket Number USCG-2019-0606]
RIN 1625-AA00

Safety Zone, North Washington Street Bridge Replacement Project,
Charles River, Boston, MA

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to establish a temporary safety zone
for the navigable waters within 100 yards of the North Washington
Street Bridge, Charles River, Boston, Massachusetts, from December 1,
2019 through December 31, 2023. The temporary safety zone is necessary
to protect personnel, vessels, and the marine environment from
potential hazards created during the replacement project of the North
Washington Street Bridge. When enforced, this proposed rule would
prohibit vessels and persons from being in the safety zone unless
authorized by the Captain of the Port Boston or a designated
representative. We invite your comments on this proposed rulemaking.

DATES: Comments and related material must be received by the Coast
Guard on or before October 4, 2019.

ADDRESSES: You may submit comments identified by docket number USCG-
2019-0606 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
proposed rulemaking, call or email Mark Cutter, Waterways Management
Division, U.S. Coast Guard Sector Boston, telephone<PHONE_NUMBER>, email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
NAD 83 North American Datum 1983
Sec.  Section
U.S.C. United States Code
MassDOT Massachusetts Department of Transportation

II. Background, Purpose, and Legal Basis

    Massachusetts Department of Transportation (MassDOT) notified
Sector Boston that there will be times in which the navigable channels
underneath the North Washington Street Bridge, Charles River, Boston,
Massachusetts, will need to be closed for the removal of the old bridge
spans, demolition of the swing span pier foundation, construction of
the abutment, and replacement of the span. The exact times are
currently unknown. However, every effort is being made by the MassDOT
and contractor to schedule these closures during the winter months when
the Charles River is iced over or during the fall and spring when
boating traffic is minimal.
    The replacement project started in the summer of 2018 and is
expected to be completed in the spring of 2023. The COTP Boston
determined that the potential hazards associated with the removal of
the old bridge spans, demolition of the swing span pier foundation,
construction of the abutment, and replacement of the span will be a
safety concern for anyone within the work area. The proposed temporary
safety zone would be enforced during the removal of the old bridge
spans, demolition of the swing span pier foundation, construction of
the abutment, and replacement of the span or when other hazards to
navigation arise. No vessel or person will be permitted to enter the
proposed temporary safety zone without obtaining permission from the
COTP or a designated representative.
    The Coast Guard will notify the public of closures through the
Massachusetts Bay Harbor Safety Committee meetings, Boston's Port
Operators Group meetings, Local Notice to Mariners, and through the
Massachusetts Boating & Yacht Clubs Associations network. The Coast
Guard will issue a Safety Marine Information Broadcast (SMIB) via
marine channel 16 (VHF-FM) seven days in advance of the commencement of
the proposed safety zone.
    The purpose of this rulemaking is to protect personnel, vessels,
and the marine environment from potential hazards created during the
replacement project of the North Washington Street Bridge, Charles
River, Boston, Massachusetts. The Coast Guard is proposing this
rulemaking under authority in 46 U.S.C. 70034 (previously 33 U.S.C.
1231).

III. Discussion of Proposed Rule

    The Coast Guard is proposing to establish a safety zone starting at
12:01 a.m. on December 1, 2019, to 11:59 p.m. on December 31, 2023. The
safety zone would cover all navigable waters within 100 yards of the
North Washington Street Bridge, Charles River, Boston, Massachusetts.
The safety zone will only be enforced during periods when work barges
and cranes will be placed in the navigable channel or when other
hazards to navigation exist. Any closure is expected to last less than
two weeks. The duration of the zone is intended to ensure the safety of
vessels, the maritime public, construction workers, and the marine
environment during periods of replacement of the North Washington
Street Bridge, over the main channel at the entrance of the Charles
River, Boston, Massachusetts. During the enforcement period, all
vessels and persons must obtain permission from the COTP Boston or a
designated representative before entering the safety zone.

IV. 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 and Executive orders and
we discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This proposed rule has
not been designated a ``significant regulatory action,'' under
Executive Order 12866. Accordingly, the proposed rule has not been
reviewed by the Office of Management and Budget (OMB), and pursuant to
OMB guidance it is exempt from the requirements of Executive Order
13771.
    This regulatory action determination is based on the size,
location, duration, and time of year of the safety zone. There may be a
time during the boating summer season that the safety zone needs to be
enforced. However, MassDOT and the contractor are making all attempts
to schedule these needed closures during the winter months when the
Charles River is iced over or during the fall and spring when boating
traffic is minimal. We expect the adverse economic impact of this
proposed rule to be minimal. We will provide ample notice of the safety
zone effective dates and vessels will be able to enter the safety zone
when construction equipment is not occupying the channel. Although this
regulation may have some adverse impact on the public, the potential
impact will be minimal because the boating season for vessels on the
Charles River usually begins in early May and concludes in October. If
a summer time closure is needed, with the exception of an emergency, we
will coordinate with MassDOT, the contractor, and the Harbormaster to
ensure that all alternatives are explored, the duration is of the
shortest possible timeframe, and a minimum of two weeks notification
has been given to the boating public via Local Notice to Mariners,
Safety Marine Information Broadcast via marine channel 16 (VHF-FM) and
through the Massachusetts Boating & Yacht Clubs Associations network.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 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.
    While some owners or operators of vessels intending to transit this
safety zone may be small entities, for the reasons stated in section
IV.A above, this proposed rule will not have a significant economic
impact on any vessel owner or operator.
    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.
    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 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 section. 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.

C. Collection of Information

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

D. Federalism and Indian Tribal Governments

    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
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, 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. If
you believe this proposed rule has implications for federalism or
Indian tribes, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section.

E. 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 an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

F. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Directive 023-01 and Environmental Planning COMDTINST 5090.1
(series), which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (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 the
establishment of a temporary safety zone for the navigable waters
within 100 yards of the North Washington Street Bridge, Charles River,
Boston, Massachusetts, from December 1, 2019 through December 31, 2023
for the replacement of the bridge. The safety zone will only be
enforced during periods when work barges and cranes will be placed in
the navigable channel or when other hazards to navigation arise. As
discussed in our pre-construction meeting, any closure is expected to
be of less than a two-week duration and all attempts are being made by
MassDOT and contractor to schedule these closures during winter months
when there is no boating traffic or during the spring and fall season
when boating traffic is minimal. Normally, such actions are
categorically excluded from further review under paragraph L60(a) of
Table 3-1 of U.S. Coast Guard Environmental Planning Implementing
Procedures 5090.1. A preliminary Record of Environmental Consideration
supporting this determination is 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.

G. 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.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. 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.
    We encourage you to submit comments through the Federal eRulemaking
Portal at http://www.regulations.gov. If your material cannot be
submitted using http://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
    We accept anonymous comments. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, visit http://www.regulations.gov/privacyNotice.
    Documents mentioned in this NPRM as being available in the docket,
and all public comments, will be in our online docket at http://www.regulations.gov and can be viewed by following that website's
instructions. Additionally, if you go to the online docket and sign up
for email alerts, you will be notified when comments are posted or a
final rule is published.

List of Subjects in 33 CFR Part 165

    Marine safety, Navigation (water), Reporting and record keeping
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:  46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No. 0170.1.

0
2. Add Sec.  165.T01-0606 to read as follows:

Sec.  165.T01-0606  Safety Zone, North Washington Street Bridge
Replacement Project--Charles River, Boston, MA

    (a) Location. The following area is a safety zone: All navigable
waters within 100 yards of the North Washington Street Bridge, Charles
River, Boston, Massachusetts.
    (b) Enforcement Periods. This rule is enforceable from 12:01 a.m.
on December 1, 2019, to 11:59 p.m. on December 31, 2023.
    (c) Definitions. As used in this section:
    (1) Designated representative means any Coast Guard commissioned,

warrant, petty officer, or any federal, state, or local law enforcement
officer who has been designated by the Captain of the Port (COTP)
Boston, to act on his or her behalf. The designated representative may
be on an official patrol vessel or may be on shore and will communicate
with vessels via VHF-FM radio or loudhailer. In addition, members of
the Coast Guard Auxiliary may be present to inform vessel operators of
this regulation.
    (2) Official patrol vessels means any Coast Guard, Coast Guard
Auxiliary, state, or local law enforcement vessels assigned or approved
by the COTP Boston to enforce this section.
    (d) Regulations. When this safety zone is enforced, the following
regulations, along with those contained in 33 CFR 165.23 apply:
    (1) No person or vessel may enter or remain in this safety zone
without the permission of the COTP Boston or the COTP's designated
representatives. However, any person or vessel permitted to enter the
safety zone must comply with the directions and orders of the COTP
Boston or a designated representative.
    (2) To obtain permission required by this regulation, individuals
may reach the COTP Boston or a COTP-designated representative via
Channel 16 (VHF-FM) or<PHONE_NUMBER> (Sector Boston Command Center).
    (3) Penalties. Those who violate this section are subject to the
penalties set forth in 33 U.S.C. 1232.

    Dated: August 28, 2019.
Eric. J. Doucette,
Captain, U.S. Coast Guard, Captain of the Port Boston.
[FR Doc. 2019-19048 Filed 9-3-19; 8:45 am]
 BILLING CODE 9110-04-P


[Federal Register Volume 76, Number 131 (Friday, July 8, 2011)]
[Rules and Regulations]
[Pages 40222-40223]
[FR Doc No: 2011-16955]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2011-0115; Directorate Identifier 2010-NE-40-AD;
Amendment 39-16728; AD 2011-13-05]
RIN 2120-AA64

Airworthiness Directives; Turbomeca S.A. ARRIEL 2B and 2B1
Turboshaft Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for the
products listed above. This AD results from mandatory continuing
airworthiness information (MCAI) issued by an aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The MCAI describes the unsafe condition as:

    Several cases of Gas Generator (GG) Turbine Blade rupture
occurred in service on ARRIEL 2 twin engine applications and
recently one on a single engine helicopter. For the case occurring
in flight on a single engine helicopter (ARRIEL 2B1 engine), the
pilot performed an emergency autorotation, landing the helicopter
without further incident.

We are issuing this AD to prevent rupture of a GG turbine blade, which
could result in an uncommanded in-flight shutdown and an emergency
autorotation landing or accident.

DATES: This AD becomes effective August 12, 2011. The Director of the
Federal Register approved the incorporation by reference of a certain
publication listed in this AD as of August 12, 2011.

ADDRESSES: The Docket Operations office is located at Docket Management
Facility, U.S. Department of Transportation, 1200 New Jersey Avenue,
SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-
0001.

FOR FURTHER INFORMATION CONTACT: Rose Len, Aerospace Engineer, Engine
Certification Office, FAA, Engine & Propeller Directorate, 12 New
England Executive Park, Burlington, MA 01803; e-mail<EMAIL_ADDRESS>
phone:<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
That NPRM was published in the Federal Register on February 18, 2011
(76 FR 9515). That NPRM proposed to correct an unsafe condition for the
specified products. The MCAI states:

    Several cases of Gas Generator (GG) Turbine Blade rupture
occurred in service on ARRIEL 2 twin engine applications and
recently one on a single engine helicopter. For the case occurring
in flight on a single engine helicopter (ARRIEL 2B1 engine), the
pilot performed an emergency autorotation, landing the helicopter
without further incident.
    The design of ARRIEL 2 engines (containment shield around the GG
turbine) allows debris from a blade or the disc inter-blade area to
be contained in the event of rupture. However, the rupture of a GG
Turbine Blade may lead to an uncommanded In Flight Shut-Down which,
on a single-engine helicopter, could ultimately lead to an emergency
autorotation landing.
    The most probable root cause of the ruptures is an excitation of
one of the vibration modes of the GG Turbine Blade in conjunction
with several secondary contributing factors which are deemed
sufficient to reduce the stress margin of the blade to a level
consistent with the rate of occurrences of ruptures encountered.
    Turbom[eacute]ca has released TU166 modification which consists
in inserting Blade dampers between the GG Turbine Disc and the GG
Turbine Blade platform. Introduction of these dampers minimizes the
effects of HP blade vibratory excitation and increases the blade
tolerance for this type of stress.

Comments

    We gave the public the opportunity to participate in developing
this AD. We received no comments on the NPRM.

Conclusion

    We reviewed the available data and determined that air safety and
the public interest require adopting the AD as proposed.

Costs of Compliance

    Based on the service information, we estimate that this AD would
affect about 537 products of U.S. registry. We also estimate that it
would take about 60 work-hours per product to comply with this AD. The
average labor rate is $85 per work-hour. Required parts would cost
about $3,900 per product. Based on these figures, we estimate the cost
of the AD on U.S. operators to be $4,833,000.

Authority for This Rulemaking

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

Regulatory Findings

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

under the criteria of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this AD and placed it in the AD docket.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the regulatory evaluation,
any comments received, and other information. The street address for
the Docket Operations office (phone:<PHONE_NUMBER>) is provided in the
ADDRESSES section. Comments will be available in the AD docket shortly
after receipt.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2011-13-05 Turbomeca S.A.: Amendment 39-16728. Docket No. FAA-2011-
0115; Directorate Identifier 2010-NE-40-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective August
12, 2011.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Turbomeca S.A. ARRIEL 2B and 2B1
turboshaft engines not modified by TU166 modification. These engines
are installed on, but not limited to, Eurocopter AS 350 B3 and EC
130 B4 helicopters.

Reason

    (d) This AD results from:
    Several cases of Gas Generator (GG) Turbine Blade rupture
occurred in service on ARRIEL 2 twin engine applications and
recently one on a single engine helicopter. For the case occurring
in flight on a single engine helicopter (ARRIEL 2B1 engine), the
pilot performed an emergency autorotation, landing the helicopter
without further incident.
    We are issuing this AD to prevent rupture of a GG turbine blade,
which could result in an uncommanded in-flight shutdown and an
emergency autorotation landing or accident.

Actions and Compliance

    (e) Unless already done, do the following actions.
    (1) Accomplish TU166 modification in accordance with the
instructions specified within Turbom[eacute]ca Mandatory Service
Bulletin (MSB) A292 72 3166 Version B, dated September 20, 2010,
when the GG Turbine is replaced or when the engine or Module M03 is
going through overhaul or repair, or within 1,300 cycles-in-service
after the effective date of this AD, whichever occurs first.
    (2) Accomplishment, before the effective date of this AD, of
TU166 modification in accordance with the instructions of
Turbom[eacute]ca MSB A292 72 3166 Version A, dated August 17, 2010,
satisfies the requirement of paragraph (e)(1) of this AD.

FAA AD Differences

    (f) This AD differs from the Mandatory Continuing Airworthiness
Information (MCAI) and or service information by the following:
    (1) European Aviation Safety Agency (EASA) AD No. 2010-0198,
dated October 1, 2010, applies to the ARRIEL 2B1A engine. This AD
does not apply to that model because it has no U.S. type
certificate.
    (2) EASA AD No. 2010-198 has a compliance date of ``but no later
than 25 months after the effective date of this AD. This AD has a
compliance time of ``1,300 cycles-in-service,'' based on average
fleet usage data supplied by Turbomeca.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:

Alternative Methods of Compliance (AMOCs)

    (h) The Manager, Engine Certification Office, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19.

Related Information

    (i) Refer to MCAI EASA Airworthiness Directive 2010-0198, dated
October 1, 2010, for related information.
    (j) Contact Rose Len, Aerospace Engineer, Engine Certification
Office, FAA, Engine & Propeller Directorate, 12 New England
Executive Park, Burlington, MA 01803; e-mail<EMAIL_ADDRESS>
phone:<PHONE_NUMBER>; fax<PHONE_NUMBER>, for more information
about this AD.

Material Incorporated by Reference

    (k) You must use Turbomeca S.A. Mandatory Service Bulletin A292
72 3166 Version B, dated September 20, 2010, to do the actions
required by this AD, unless the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Turbomeca S.A., 40220 Tarnos, France; e-mail<EMAIL_ADDRESS>telephone 33 05 59 74 40 00, fax 33 05 59 74
45 15, or go to: http://www.turbomeca-support.com.
    (3) You may review copies at the FAA, New England Region, 12 New
England Executive Park, Burlington, MA; or at the National Archives
and Records Administration (NARA). For information on the
availability of this material at NARA, call<PHONE_NUMBER>, or go
to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Burlington, Massachusetts, on June 14, 2011.
Peter A. White,
Acting Manager, Engine and Propeller Directorate, Aircraft
Certification Service.
[FR Doc. 2011-16955 Filed 7-7-11; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 76 (Friday, April 21, 2017)]
[Notices]
[Pages 18800-18802]
[FR Doc No: 2017-08057]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80467; File No. SR-CHX-2017-06]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change To Shorten the Standard
Settlement Cycle From Three Business Days After the Trade Date to Two
Business Days After the Trade Date

April 17, 2017.
    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 April 6, 2017, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the self-regulatory
organization. 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

    CHX proposes to amend Articles 1 and 9 of the Rules of the Exchange
(``CHX Rules'') to conform to an amendment to Securities Exchange Act
Rule 15c6-1(a) \3\ to shorten the standard settlement cycle from three
business days after the trade date (``T+3'') to two business days after
the trade date (``T+2''). The text of this proposed rule change is
available on the Exchange's Web site at http://www.chx.com/regulatory-operations/rule-filings/, at the principal office of the Exchange, and
at the Commission's Public Reference Room.
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    \3\ 17 CFR 240.15c6-1(a).

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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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend Article 1, Rule 2(e) and Article 9,
Rule 7 to conform to an amendment to Securities Exchange Act Rule 15c6-
1(a) \4\ to shorten the standard settlement cycle from T+3 to T+2. The
operative date of the proposed rule change is September 5, 2017.
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    \4\ See id; see also infra notes 8 and 9.
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Background
    In 1993, the Commission adopted Securities Exchange Act Rule 15c6-
1(a),\5\ which established three business days after trade date instead
of five business days (``T+5''), as the standard trade settlement cycle
for most securities transactions. The rule became effective in June
1995.\6\ In March 1995, the Exchange amended its rules to be consistent
with the T+3 settlement cycle for securities transactions.\7\
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    \5\ 17 CFR 240.15c6-1(a).
    \6\ See Securities Exchange Act Release Nos. 33023 (October 6,
1993), 58 FR 52891 (order adopting Rule 15c6-1); see also Securities
Exchange Act Release No. 34952 (November 9, 1994), 59 FR 59137
(order changing the effective date from June 1, 1995, to June 7,
1995).
    \7\ See Securities Exchange Act Release No. 35554 (March 31,
1995), 60 FR 17597 (April 6, 1995); see also Securities Exchange Act
Release No. 35155 (December 27, 1994), 60 FR 517 (January 4, 1995)
(SR-CHX-94-26).
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    On September 28, 2016, the SEC proposed amendments to Rule 15c6-
1(a) to shorten the standard settlement cycle from T+3 to T+2 on the
basis that the shorter settlement cycle would reduce the risks that
arise from the value and number of unsettled securities transactions
prior to completion of settlement, including credit, market and
liquidity risk faced by U.S. market participants.\8\ The proposed rule
amendment was published for comment in the Federal Register on October
5, 2016.\9\ On March 22, 2017, the SEC adopted the proposed rule
amendment and set a Rule 15c6-1(a) compliance date of September 5,
2017.\10\
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    \8\ See SEC Press Release 2016-200: ``SEC Proposes Rule
Amendment to Expedite Process for Settling Securities Transactions''
(September 28, 2016).
    \9\ See Securities Exchange Act Release No. 78962 (September 28,
2016), 81 FR 69240 (October 5, 2016) (File No. S7-22-16) (``SEC
Proposing Release'').
    \10\ See Securities Exchange Act Relesae [sic] No. 80295 (March
22, 2017), 82 FR 15564 (March 29, 2017) (``SEC Adopting Release'').
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    In light of this action by the SEC, the Exchange proposes to amend
CHX Rules to reflect ``regular way'' settlement as occurring on
T+2.\11\
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    \11\ In December 2016, the New York Stock Exchange (``NYSE'')
also filed a rule change to reflect ``regular way'' settlement as
occurring on T+2. See Securities Exchange Act Release No. 80021
(February 10, 2017), 82 FR 10931 (February 16, 2017); see also
Securities Exchange Act Release No. 79659 (December 22, 2016), 81 FR
96076 (December 29, 2016) (SR-NYSE-2016-87).
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Proposed Rule Change
    The Exchange proposes to amend Article 1, Rule 2(e) and Article 9,
Rule 7 to reflect a T+2 settlement cycle. Except for changes reflecting
the shortened settlement period, the Exchange does not propose any
other amendments to the CHX Rules.
    Current Article 1, Rule 2(e)(1) provides, in pertinent part, that
``Regular Way Settlement'' means a transaction for delivery on the
third full business day following the day of the contract. The Exchange
proposes an amendment to change ``third full business day'' to ``second
full business day.''
    Current Article 1, Rule 2(e)(2)(C) provides that ``Seller's
Option'' means transaction for delivery within the time specified in
the option, which time shall not be less than four (4) full business
days nor more than 60 days following the day of the contract; except
that the Exchange may provide otherwise in specific issues of stocks or
classes of stocks. The Exchange proposes an amendment to change ``four
(4) full business days'' to ``three (3) full business days.''
    Current Article 9, Rule 7(a) provides, in pertinent part, that
transactions in stocks, except as provided below, shall be ex-dividend
or ex-rights two full business days immediately preceding the date of
record fixed by the corporation for the determination of stockholders
entitled to receive such dividends or rights, except: (1) When such
record date occurs upon a holiday or half-holiday, transactions in the
stock shall be ex-dividend or ex-rights three full business days
immediately preceding the record date. The Exchange proposes amendments
to change ``two full business days'' to ``business day'' under Rule
7(a) and ``three full business days'' to ``two full business days''
under Rule 7(a)(1).
    Current Article 9, Rule 7(b) provides, in pertinent part, that
transactions in securities which have subscription warrants attached
(except those made for ``cash'') shall be ex-warrants on the second
full business day preceding the date of expiration of the warrants,
except: (1) When the day of expiration occurs on a holiday or Sunday,
said transactions shall be ex-warrants on the third full business day
preceding said day of expiration. The Exchange proposes amendments to
change ``second full business day'' to ``business day'' under Rule 7(b)
and ``third full business day'' to ``second full business day'' under
Rule 7(b)(1).
    As noted above, the Exchange proposes to make the proposed rule
change operative on September 5, 2017, which is the compliance date for
the amendment to Rule 15c6-1(a) set by the SEC.\12\
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    \12\ See supra note 10.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\14\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    In particular, the Exchange believes that the proposed rule change
supports the industry-led initiative to shorten the settlement cycle to
two business days. Moreover, the proposed rule change is consistent
with the SEC's amendment to Securities Exchange Act Rule 15c6-1(a) to
require standard settlement no later than T+2. The Exchange believes
that the proposed rule change will provide the regulatory certainty to
facilitate the industry-led move to a T+2 settlement cycle. Further,
the Exchange believes that, by shortening the time period for
settlement of most securities transactions, the proposed rule change
would protect investors and the public

interest by reducing the number of unsettled trades in the clearance
and settlement system at any given time, thereby reducing the risk
inherent in settling securities transactions to clearing corporations,
their members and public investors. The Exchange also believes that the
proposed operative date for the proposed rule change of September 5,
2017 would remove impediments to and perfect the mechanisms of a free
and open market and a national market system as it is identical to the
compliance date for the amendment to Rule 15c6-1(a) set by the SEC.\15\
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    \15\ See supra note 10.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed change is not
designed to address any competitive issue, but rather facilitate the
industry's transition to a T+2 regular way settlement cycle. The
Exchange also believes that the proposed rule change will serve to
promote clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection. Moreover, the
proposed rule change is consistent with the SEC's amendment to
Securities Exchange Act Rule 15c6-1(a) to require standard settlement
no later than T+2. Accordingly, the Exchange believes that the proposed
changes do not impose any burdens on the industry in addition to those
necessary to implement amendments to Securities Exchange Act Rule 15c6-
1(a) as described and enumerated in the SEC Proposing Release.\16\
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    \16\ See supra note 9.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

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

III. 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 (i) as the Commission may
designate up to 90 days of such date 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 the 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-CHX-2017-06 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-CHX-2017-06. 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-CHX-2017-06, and should be
submitted on or before May 12, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2017-08057 Filed 4-20-17; 8:45 am]
BILLING CODE 8011-01-P