[Federal Register Volume 79, Number 110 (Monday, June 9, 2014)]
[Notices]
[Pages 32948-32953]
[FR Doc No: 2014-13425]

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

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2014-0410; FRL-9911-98-OAR]

Greenhouse Gas Reporting Program: Publication of Aggregated
Greenhouse Gas Data

AGENCY: Environmental Protection Agency.

ACTION: Notice.

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

SUMMARY: The Environmental Protection Agency (EPA) intends to publish
aggregated versions of certain data collected under the Greenhouse Gas
Reporting Program, including totals, averages, and other aggregated
versions of data submitted by individual reporters. The data that we
intend to aggregate were determined in previous rulemakings to be
confidential business information in their original, non-aggregated
form. This notice describes the criteria we plan to use to determine
whether confidential data are sufficiently aggregated such that
publishing them would provide useful information while protecting the
data that are entitled to confidentiality. In a memorandum to the
docket for this notice, we also provide a list of data elements that we
have identified for possible future publication in aggregated form if
they meet the final version of these criteria.

DATES: Comments. Comments must be received on or before July 9, 2014.
    Public Hearing. The EPA does not plan to conduct a public hearing
unless requested. To request a hearing, please contact the person
listed in the following FOR FURTHER INFORMATION CONTACT section by June
16, 2014. If requested, the hearing will be conducted on June 24, 2014
in the Washington, DC area. The EPA will provide further information
about the hearing on the Greenhouse Gas Reporting Rule Web site, http://www.epa.gov/ghgreporting/index.html if a hearing is requested.

ADDRESSES: You may submit your comments, identified by docket ID No.
EPA-HQ-OAR-2014-0410, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments.
     Email<EMAIL_ADDRESS>Include docket ID No. EPA-
HQ-OAR-2014-0410 [and/or RIN number] in the subject line of the
message.
     Fax:<PHONE_NUMBER>.
     Mail: Environmental Protection Agency, EPA Docket Center
(EPA/DC), Mailcode 28221T, Attention Docket ID No. OAR-2014-0410, 1200
Pennsylvania Avenue NW., Washington, DC 20460.
     Hand/Courier Delivery: EPA Docket Center, Room 3334, EPA
WJC West Building, 1301 Constitution Avenue NW., Washington, DC 20004.
Such deliveries are accepted only during the Docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2014-0410. The EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at http://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed
to be confidential business information (CBI) or other information
whose disclosure is restricted by statute. Do not submit information
that you consider to be CBI or otherwise protected through http://www.regulations.gov or email. The http://www.regulations.gov Web site
is an ``anonymous access'' system, which means the EPA will not know
your identity or contact information unless you provide it in the body
of your comment. If you send an email comment directly to the EPA
without going through http://www.regulations.gov, your email address
will be automatically captured and included as part of the comment that
is placed in the public docket and made available on the Internet. If
you submit an electronic comment, the EPA recommends that you include
your name and other contact information in the body of your comment and
with any disk or CD-ROM you submit. If the EPA cannot read your comment
due to technical difficulties and cannot contact you for clarification,
the EPA may not be able to consider your comment. Electronic files
should avoid the use of special characters, any form of encryption, and
be free of any defects or viruses.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some
information is not publicly available (e.g., CBI or other information
whose disclosure is restricted by statute). Certain other material,
such as copyrighted material, will be publicly available only in hard
copy. Publicly available docket materials are available either
electronically in http://www.regulations.gov or in hard copy at the Air
Docket, EPA/DC, Room 3334, EPA WJC West Building, 1301 Constitution
Ave. NW., Washington, DC.
    This Docket Facility is open from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal holidays. The telephone number for the
Public Reading Room is<PHONE_NUMBER>, and the telephone number for the
Air Docket is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Carole Cook, Climate Change Division,
Office of Atmospheric Programs (MC-6207J), Environmental Protection
Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone
number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>For technical information, please go to the
Greenhouse Gas Reporting Rule Program Web site http://www.epa.gov/climatechange/emissions/ghgrulemaking.html. To submit a question,
select Rule Help Center, followed by ``Contact Us.''

SUPPLEMENTARY INFORMATION: Worldwide Web (WWW). In addition to being
available in the docket, an electronic copy of today's notice will also
be available through the WWW. Following the Director's signature, a
copy of this action will be posted on EPA's greenhouse gas reporting
rule Web site at http://www.epa.gov/climatechange/emissions/ghgrulemaking.html.
    Organization of This Document. The following outline is provided to
aid in locating information in this preamble.

I. General Information
    A. Does this notice apply to me?
    B. How can I get copies of this document and other related
information?
    C. What should I consider as I prepare my comments to the EPA?
II. Background and Purpose of Notice
III. Description of Rationale and Criteria for

Data Aggregation
    A. Rationale for CBI Data Aggregation
    B. Criteria for Data Aggregation and Publication
    C. Data Elements Proposed for Aggregation and Publication
    D. Data Publication Process and Availability
    E. Request for Comments

I. General Information

A. Does this notice apply to me?

    This notice is directed to the general public. However, this action
may be of particular interest to parties subject to the requirements of
40 CFR part 98. If you have further questions regarding the
applicability of this action to a particular party, please contact the
person listed in the FOR FURTHER INFORMATION CONTACT section.

B. How can I get copies of this document and other related information?

1. Electronically
    The EPA has included a public docket for this Federal Register
notice under Docket EPA-HQ-OAR-2014-0410. All documents in the docket
are identified in the docket index available at http://www.regulations.gov. Although listed in the index, some information is
not publicly available, such as CBI or other information for which
disclosure is restricted by statute. Certain materials, such as
copyrighted material, will be available only in hard copy at the EPA
Docket Center.
2. EPA Docket Center
    Materials listed under Docket EPA-HQ-OAR-2014-0410 will be
available for public viewing at http://www.regulations.gov and at the
EPA Docket Center (EPA/DC), Room 3334, EPA WJC West Building, 1301
Constitution Avenue NW., Washington, DC 20004. The EPA Docket Center
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Reading
Room is<PHONE_NUMBER>, and the telephone number for the Air Docket is
(202) 566-1742.

C. What should I consider as I prepare my comments to the EPA?

1. Submitting CBI in Response to This Notice
    Clearly mark the part or all of the comments that you claim to be
CBI submitted in response to this notice. For CBI information in a disk
or CD ROM that you mail to the EPA, mark the outside of the disk or CD
ROM as CBI and then identify electronically within the disk or CD ROM
the specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, submit a copy of the comment that does not contain the information
claimed as CBI for inclusion in the public docket. Information marked
as CBI will not be disclosed except in accordance with procedures set
forth in 40 CFR part 2.
    Do not submit information that you consider to be CBI or otherwise
protected through http://www.regulations.gov or email. Send or deliver
information identified as CBI to only the mail or hand/courier delivery
address listed above, attention: Docket ID No. EPA-HQ-OAR-2014-0410.
    If you have any questions about CBI or the procedures for claiming
CBI, please consult the person identified in the FOR FURTHER
INFORMATION CONTACT section.
2. Tips for Preparing Your Comments
    Follow directions. The EPA may ask you to respond to specific
questions or organize comments by referencing a CFR part or section
number. Explain why you agree or disagree and suggest alternatives for
your requested changes. Describe any assumptions and provide any
technical information and or data that you used. Provide specific
examples to illustrate your concerns and suggest alternatives. Explain
your views as clearly as possible, avoiding the use of profanity or
personal threats.
    Make sure to submit your information and comments by the comment
period deadline identified in the preceding section titled DATES. To
ensure proper receipt by the EPA, be sure to identify this notice by
the docket ID number assigned to this action in the subject line on the
first page of your response. You may also provide the name, date, and
Federal Register citation.

II. Background and Purpose of Notice

    Background. The EPA's Office of Atmospheric Programs (OAP) has
responsibility for protecting public health and the environment by
addressing climate change, protecting the ozone layer, and improving
regional air quality. In response to the FY2008 Consolidated
Appropriations Act (H.R. 2764; Pub. L. 110-161), the EPA created the
Greenhouse Gas Reporting Program (GHGRP), 40 CFR part 98 (Part 98),
which requires reporting of greenhouse gas (GHG) data and other
relevant information from large sources and suppliers in the United
States. The purpose of Part 98 is to collect accurate and timely GHG
data to inform future policy decisions.
    Through a series of rulemaking actions, the EPA determined which
categories of data elements meet the statutory and regulatory criteria
for protection as CBI. For information on the history of
confidentiality determinations for Part 98 data elements, see the
following notices:
     75 FR 39094, July 7, 2010. Described the EPA's intent to
make categorical CBI determinations for Part 98 data and proposed data
categories for the Part 98 data elements.
     76 FR 30782, May 26, 2011. Assigned data elements to data
categories and published the final CBI determinations for the data
elements to be reported under 34 Part 98 subparts, except for those
data elements that were assigned to the ``Inputs to Emission
Equations'' data category. Finalized amendments to 40 CFR part 2
governing CBI obtained under Part 98 that allow the EPA to release or
withhold data elements according to final categorical confidentiality
determinations.
     77 FR 48072, August 13, 2012. Finalized confidentiality
determinations for data elements to be reported under nine subparts,
except for those data elements that were assigned to the ``Inputs to
Emission Equations'' data category, and finalized confidentiality
determinations for new data elements recently added to two subparts.
     77 FR 51477, August 24, 2012. Finalized confidentiality
determinations for new data elements added to subpart L.
     78 FR 68162, November 13, 2013. Finalized confidentiality
determinations for new or substantially revised data elements in this
rule for subpart I.
     78 FR 71904, November 29, 2013. Finalized confidentiality
determinations for new or substantially revised data elements in this
rule for 15 subparts.
    Data elements determined to be CBI are handled in accordance with
the EPA's regulations in 40 CFR part 2, subpart B, and with EPA
procedures that are consistent with those regulations.
    Purpose. The EPA seeks to publish aggregated versions of data that
were previously determined by regulation to be CBI when reported by
individual facilities and suppliers, as described in the Background
section above. The EPA plans to use the aggregated data in developing
the Inventory of U.S. Greenhouse Gas Emissions and Sinks (Inventory)
that the EPA compiles annually as well as for other purposes. The
purpose of this notice is twofold: 1) to describe and seek comment on
the overarching criteria that EPA plans to use to evaluate whether data
that have been determined to be CBI when

reported by individual facilities and suppliers are sufficiently
aggregated so as not to disclose any underlying confidential data; and
2) to identify (in a memorandum in the docket for this notice) and seek
comment on a specific list of data elements that EPA is presently
considering for publication in aggregated form. (A memorandum titled
``Publication of Certain Aggregated Greenhouse Gas Data,'' associated
with this Federal Register notice and placed in the docket for this
notice, contains this list of data elements.) Although the EPA's CBI
regulations do not require us to publish a Federal Register notice or
take public comment in advance of publishing aggregated data, we are
publishing this notice and requesting comment because we anticipate a
high level of stakeholder interest. Section III.A of this notice
describes the rationale for publishing these data elements in
aggregated form, and Section III.B of this notice describes the
criteria we plan to apply to each aggregated value to determine whether
it can be published without disclosing any underlying confidential
facility-level or supplier-level data. Section III.C describes the data
elements that the EPA presently seeks to aggregate. Section III.D
describes the process that the EPA will follow for publication of
aggregated values, and Section III.E describes the aspects of this
notice for which we are seeking comment.

III. Description of Rationale and Criteria for Data Aggregation

A. Rationale for CBI Data Aggregation

    The EPA's primary purpose in aggregating GHGRP data is for use in
the Inventory. As a party to the United Nations Framework Convention on
Climate Change (UNFCCC), the United States participates in ongoing
negotiations with the international community to promote global
cooperation on climate change. The UNFCCC treaty, ratified by the
United States in 1992, sets an overall framework for intergovernmental
efforts to address the challenges posed by climate change.\1\ As part
of its commitment to the UNFCCC, the United States submits the
Inventory to the Secretariat of the UNFCCC as an annual reporting
requirement.\2\ The Inventory is a comprehensive assessment of U.S. GHG
emissions based on national-level data; it is prepared by the EPA's
Office of Air and Radiation in coordination with other federal agencies
and with consideration of public input.
---------------------------------------------------------------------------

    \1\ See: United Nations Framework Convention on Climate Change,
1992. Available at: http://unfccc.int/resource/docs/convkp/conveng.pdf. For more information about the UNFCCC, please refer to:
http://www.unfccc.int.
    \2\ See: Articles 4 and 12 of the Convention on Climate Change.
Parties to the Convention, by ratifying, ``shall develop,
periodically update, publish and make available . . . national
inventories of anthropogenic emissions by sources and removals by
sinks of all greenhouse gases not controlled by the Montreal
Protocol, using comparable methodologies . . ..''
---------------------------------------------------------------------------

    As described in the preamble of the proposed GHG Reporting Rule (74
FR 16448, April 10, 2009), the GHGRP is intended to supplement and
complement existing U.S. government programs related to climate policy
and research, including the Inventory. The GHGRP provides data to
develop and inform inventories and other U.S. climate programs by
advancing the understanding of emission processes from individual
facilities and suppliers above certain thresholds. Collected facility-,
unit-, and process-level GHG data from the GHGRP provide or help
improve the national statistics and emission estimates presented in the
Inventory. Aggregation of the GHGRP data described in this notice will
support the development and quality assurance/quality control of the
Inventory.
    As also noted in the preamble of the proposed GHG Reporting Rule
(74 FR 16448), the GHGRP was developed, in large part, to collect
comprehensive and accurate data to inform future climate policy
development and support a range of possible policies and regulations.
The EPA described the importance of transparency in informing the
public, building public confidence in the data, and ensuring data
quality, which support the development of potential future climate
policies or programs. The EPA believes that publication of aggregated
GHGRP data helps to accomplish all of these goals.
    Accordingly, the EPA plans to publish certain data, which
previously were determined to be CBI in the non-aggregated form in
which they are initially reported, in an aggregated format that we
believe no longer qualifies as CBI. As we have noted in other
rulemakings (e.g., 75 FR 39094, 77 FR 51477), it is possible to
aggregate facility- or supplier-level data in ways that do not disclose
any of the underlying CBI data. For example, national production totals
can often provide useful and important information to the public
without the risk of revealing confidential data about a specific
facility or supplier.
    The EPA is guided in this process by EPA regulations, federal
policies, and executive orders. The EPA's regulations concerning
protection of CBI suggest that aggregating this information can shield
the underlying confidential information and may be sufficient to
protect the reporters of that information from suffering substantial
competitive harm.\3\
---------------------------------------------------------------------------

    \3\ ``In taking actions under this subpart, EPA offices should
consider whether it is possible to obtain the affected business's
consent to disclosure of useful portions of records while protecting
the information which is or may be entitled to confidentiality
(e.g., by withholding such portions of a record as would identify a
business, or by disclosing data in the form of industry-wide
aggregates, multi-year averages or totals, or some similar form).''
40 CFR 2.202(f). Available at: http://www.epa.gov/epafoia1/2202.htm.
---------------------------------------------------------------------------

    Government agencies and industry organizations routinely publish
data in an aggregated format as a means of providing important
information to the public while maintaining the confidentiality of
individual companies. For example, the U.S. Energy Information
Administration (EIA) publishes natural gas liquid production data by
region or Petroleum Administration for Defense District (PADD) to mask
data reported by individual companies.\4\ The Department of Labor's
Bureau of Labor Statistics aggregates employment and wage data by
county and industry in the Quarterly Census of Employment and Wages,\5\
while suppressing data that would reveal information about individual
companies. The Census Bureau requests data from individual respondents
in the American Community Survey, which is aggregated to limit the
disclosure of information about individual respondents.\6\ The U.S.
Geological Survey (USGS) collects minerals data from thousands of
mineral industry companies; USGS is required by law to protect
proprietary information from unauthorized disclosure but publishes
aggregated versions of many of these data sets.\7\
---------------------------------------------------------------------------

    \4\ See: U.S. Energy Information Administration. ``Monthly
Natural Gas Gross Production Report.'' (Mar. 31, 2014). Available
at: http://www.eia.gov/oil_gas/natural_gas/data_publications/eia914/eia914.html.
    \5\ See: U.S. Department of Labor, Bureau of Labor Statistics.
``Quarterly Census of Employment and Wages.'' (Mar. 20, 2014)
Available at: http://www.bls.gov/cew/.
    \6\ See: U.S. Census Bureau. ``American Community Survey: Data
Suppression.'' (Nov. 15, 2013). Available at: http://www.census.gov/acs/www/Downloads/data_documentation/data_suppression/ACSO_Data_Suppression.pdf.
    \7\ See: U.S. Geological Survey. ``Proprietary Data: How They
Are Protected at the U.S. Geological Survey.''
---------------------------------------------------------------------------

    Many industry organizations use this approach as well. For example,
the American Petroleum Institute, in coordination with several other
industry organizations, collects natural gas liquid production and
sales data from its members and publishes the data

aggregated to the state and PADD levels.\8\ Additionally, the Air-
Conditioning, Heating and Refrigeration Institute, a trade association
of equipment, chemical, and component manufacturers, publishes monthly
and annual reports of U.S. manufactured shipments of central air
conditioning and air-source heat pump systems, among other types of
products, aggregated across all of its members.\9\
---------------------------------------------------------------------------

    \8\ See: American Petroleum Institute. ``2012 Sales of Natural
Gas Liquids and Liquid Refinery Gases.'' (Dec. 2013).
    \9\ See: Air-Conditioning, Heating & Refrigeration Institute.
``Monthly Shipments.'' (2013). Available at: http://www.ahrinet.org/monthly+shipments.aspx.
---------------------------------------------------------------------------

    Consistent with this approach, the EPA plans to publish select
aggregated Part 98 data at levels that ensure confidentiality of
underlying facility- or supplier-level CBI data. To guide us in making
these determinations, we have developed the criteria outlined in
Section III.B of this preamble for reviewing aggregated values prior to
publication.

B. Criteria for Data Aggregation and Publication

    The EPA recognizes that careful consideration and review of
aggregated values are necessary to ensure that underlying CBI is
sufficiently masked. This requires ensuring that the aggregated data do
not disclose underlying CBI data or allow the CBI to be computed, back-
calculated, or otherwise discerned using other Part 98 data or
additional data. To assist with this analysis, the GHGRP has developed
a set of criteria to evaluate whether a given aggregation sufficiently
masks underlying CBI.
    In developing these criteria, the GHGRP reviewed existing,
effective criteria, methods, and principles used by other EPA offices
and federal agencies that publish aggregated versions of individual
companies' confidential or proprietary data, including the USGS's
National Minerals Information Center, the Energy Information
Administration, and the EPA's Office of Chemical Safety and Pollution
Prevention. The criteria that the EPA has developed for publishing
aggregated GHGRP data are comparable in their rigor to the criteria or
principles used by these programs.
    Consistent with these goals, we have considered methods for the EPA
to publish aggregated versions of GHGRP data elements that are not
likely to cause substantial competitive harm and that do not disclose
the underlying facility- or supplier-level CBI.
1. Criteria for Aggregating Data at the National or Regional Level
    The GHGRP has established overarching criteria that we plan to use
to determine under what circumstances it is appropriate to publish
aggregated data. The EPA plans to apply these criteria to the specific
list of data elements included in the memorandum titled ``Publication
of Certain Aggregated Greenhouse Gas Data'' associated with this
Federal Register notice and to future data aggregation efforts. Over
time, the EPA may identify additional data that would be useful to
publish, and plans to use these criteria as a basis for this
aggregation.
    To determine whether a particular data element aggregated at the
national or regional level may be published without risk of disclosing
any facility- or supplier-level CBI, the EPA intends to assess the data
aggregation according to the following criteria. In line with the other
programs and offices described above, the EPA has determined that if
the data element aggregated at the national or regional level meets all
four criteria, then the data may be published without disclosing
underlying CBI.
    1a. The data used to calculate the aggregated value must be
reported by at least three separate facilities or suppliers that have
no common ownership or operator.
    2a. No single owner or operator can contribute more than x percent
to a particular aggregated value. (The EPA will not disclose the value
of x.)
    3a. No two owners or operators can contribute more than y percent
of a particular aggregated value. (The EPA will not disclose the value
of y.)
    4a. No underlying facility- or supplier-level CBI can be back-
calculated or otherwise determined using the aggregated value in
combination with other publicly available data, including any facility-
, supplier-, regional-, or national-level data published by the GHGRP
or any other data likely to be available to owners or operators.
    The EPA will publish only aggregated values that meet all four
criteria. Combined, the criteria ensure that publishing aggregated
values that meet the criteria would not inadvertently disclose
facility- or supplier-level CBI. For example, if five facilities
reported a particular data element and one company has part or total
ownership of four of the five facilities, criterion 1a would not be met
and the EPA would not release the aggregated value. Similarly, if the
data reported by one or two companies comprise the vast majority
(greater than the value of x or y described above, respectively) of the
aggregated value reported, then criteria 2a and 3a would not be met and
the EPA would not release the aggregated data. Finally, if other public
data could be used in combination with the aggregated value to
calculate or otherwise estimate CBI reported by a facility or supplier,
criterion 4a would not be met. For example, if a data element is
aggregated by region and all but one regional aggregation meet the
criteria, publishing the values from all of the other regions would
allow the data for the final region to be back-calculated if the
national total is also published. In this case, the EPA would withhold
data from at least one other region.
    The values selected for x and y in criteria 2a and 3a above will be
sufficient to ensure protection for the CBI reported by individual
facilities and suppliers. As stated in the above criteria, we do not
plan to make public the values of x and y. The EPA has determined that
releasing these values could in certain circumstances provide a
reporting company with insight into the CBI reported by competitors.
For example, the data reported by one company that is dominant in its
market may be slightly above the percentage threshold for criterion 2a
(the x value) in a certain reporting year but below the threshold in a
subsequent reporting year. In such situations, the EPA would not
publish the aggregated value for the first reporting year, but may
choose to publish the aggregated value in subsequent reporting years
(provided all other criteria are met). If the EPA disclosed the value
of x, competitors would know that the dominant company's share of that
data element decreased and the dominant company's approximate portion
of the aggregated total.
2. Criteria for Aggregating Supplier Data at the Corporate Level in
Subparts OO, PP, and QQ
    Some individual suppliers that report data under Part 98 subparts
OO (Suppliers of Industrial Greenhouse Gases), PP (Suppliers of Carbon
Dioxide), and QQ (Importers and Exporters of Fluorinated Greenhouse
Gases Contained in Pre-Charged Equipment or Closed-Cell Foams) report
data about multiple industrial gases. The EPA intends to aggregate
these data, in units of carbon dioxide equivalent, across products or
product types at the corporate level to increase transparency by
providing the general public with the total potential GHG emissions
associated with industrial gases supplied into the economy by each

reporting corporation and to provide the ability to track how this
quantity changes over time.
    The memorandum titled ``Publication of Certain Aggregated
Greenhouse Gas Data'' lists certain subpart OO, PP, and QQ data
elements that the EPA may aggregate and publish across multiple
products or product types from a single company. As above, the EPA will
only aggregate and publish this CBI if the following criteria are met.
    1b. The aggregated value includes information from two or more
products supplied by the reporter.
    2b. No single product can contribute more than z percent of the
corporate-level total to a particular aggregated value. (The EPA will
not disclose the value of z.)
    3b. Publication of the data does not allow for values (from another
owner) that do not themselves meet criteria 1b and 2b to be back-
calculated from national- or regional-level data aggregations.
    4b. If a company reports data on only a single product type (e.g.,
under subpart QQ), the products within that product type contain
different GHGs, different amounts of that GHG per product, or both.
    As above, the value selected for z in criterion 2b above will be
sufficient to ensure protection for the CBI reported by individual
suppliers, and the EPA does not intend to make that value public. For
supplier data aggregated at the corporate level, if the data element
includes information from only one product supplied by the reporter,
then criterion 1b would not be met and the value would not be
published. Similarly, if one product supplied comprises more than z
percent of the corporate-level total of the aggregated value, then
criterion 2b would not be met and the EPA would not publish the
aggregated value. If publishing corporate-level data from Owners A and
B would allow for the back-calculation of data from Owner C, which
would otherwise have been protected because it did not meet criteria 1b
and 2b, then criterion 3b would not be met and the EPA would not
publish the aggregated value from Owners A and/or B.

C. Data Elements Proposed for Aggregation and Publication

    The EPA reviewed the Part 98 data categorized as CBI and has
identified a selection of data elements that, in aggregated form, would
be used to improve or check the Inventory or otherwise inform policy-
makers and the public. To determine whether these data aggregations
could be published without disclosing the underlying facility- or
supplier-level CBI, we will apply the final version of the criteria
described above to each aggregated value. The memorandum titled
``Publication of Certain Aggregated Greenhouse Gas Data'' associated
with this Federal Register notice contains a list of data elements that
the EPA is presently considering for aggregation if they meet the final
criteria for publication that the EPA adopts after considering comment
on this notice. The aggregated values would likely be published on an
annual basis, as long as they continue to meet the final criteria.
Additional information regarding the publication of data in future
years is provided in Section III.D of this notice.

D. Data Publication Process and Availability

    The EPA will publish only aggregated versions of data that were
previously determined to be CBI in non-aggregated form in accordance
with the EPA's CBI regulations at 40 CFR part 2, subpart B. With regard
to the overarching criteria described in this notice, the EPA will
consider comments received and anticipates publishing the final
aggregation criteria. With regard to the specific list of data elements
listed in the memorandum titled ``Publication of Certain Aggregated
Greenhouse Gas Data,'' the EPA will consider comments on this notice
and evaluate the possible aggregations against the final criteria to
determine which of the data elements may be published in aggregated
form. The EPA will then individually notify each affected reporter (in
writing and in a manner providing confirmation of receipt, as specified
under the EPA's CBI regulations at 40 CFR 2.204(e)(1)) about which of
that reporter's data elements the EPA intends to aggregate and the
intended level of aggregation. The EPA will then give the reporter at
least 10 days to file for judicial review, as required under 40 CFR
2.205(f)(2), before we publicly release any aggregated values.
    The data elements listed in the memorandum titled ``Publication of
Certain Aggregated Greenhouse Gas Data'' are the data elements that the
EPA is presently considering publishing in aggregated form, provided
they meet the final aggregation criteria that the EPA adopts. For
aggregated values to be published in any future year, the final
criteria must be met for the relevant data element(s) for that
particular year. In the future, we may find that publication of
additional aggregated values would be useful to Inventory compilation,
policy-makers, or the public. In that case, we would evaluate the
aggregations to determine whether they meet the relevant final
criteria, individually notify each affected reporter and wait at least
10 days before releasing the aggregated values, as described above. We
would not necessarily publish additional Federal Register notices
concerning publication of additional aggregated values.
    The EPA plans to make the aggregated Part 98 data available in
various formats and sources as appropriate to the data element,
including the Inventory, the EPA's Facility Level Information on
GreenHouse gases Tool (FLIGHT), the EPA's Envirofacts Web site, and EPA
downloadable data files available on the EPA Web site. The published
data will not include non-aggregated facility or supplier data that
have been categorized as CBI or aggregated values that would reveal
underlying facility- or supplier-level CBI.

E. Request for Comments

    We are soliciting comment on the rationale and criteria we plan to
use to determine which data elements can be aggregated and published
without disclosing underlying facility- or supplier-level CBI. If you
believe that one or more of the criteria are either too stringent or
not stringent enough, provide a detailed explanation of (1) why you
believe this to be true and (2) what changes to the proposed criteria
should be made or what alternative criteria should be adopted.
Providing specific scenarios to illustrate either the effectiveness or
ineffectiveness of the criteria would be particularly useful. We are
soliciting comments on appropriate values for x, y, and z in criteria
2a, 3a and 2b (including whether these values must be consistent across
subparts) and on our intent not to make those values publicly
available.
    We are also soliciting comments on whether aggregation and
publication of the specific data elements identified in the memorandum
titled ``Publication of Certain Aggregated Greenhouse Gas Data'' would
disclose underlying CBI or otherwise would likely result in substantial
competitive harm to a particular company. Please identify the specific
data element and level of aggregation and explain how the public
release of that particular value would or would not be likely to result
in disclosure of underlying facility- or supplier-level CBI or
otherwise cause substantial competitive harm. If you believe that the
publication of any of the aggregated data identified in the memorandum
associated with this Federal Register notice would be likely to
disclose CBI or otherwise cause substantial competitive harm, explain
the mechanism by which this would

occur. If your concern is that the release of aggregated value for a
particular data element would allow competitors to derive the value for
an individual facility or supplier, specifically describe the pathway
by which this could occur. Describe any unique process or aspect of a
facility or supplier that would be revealed if the aggregated value for
a specific data element were made publicly available.
    If the aggregated value would disclose underlying CBI only when
used in combination with other publicly available data, then identify
the information you believe could be revealed, describe how it would be
calculated or otherwise discerned, explain why you consider the
information to be sensitive, describe the competitive harm that its
disclosure would be likely to cause, and identify the source of the
other data. If the data are physically published, such as in a book,
industry trade publication, or federal agency publication, provide the
title, volume number (if applicable), author(s), publisher, publication
date, frequency of publication, and International Standard Book Number
(ISBN), or other identifier. For data published on a Web site, provide
the address of the Web site and the date you last visited the Web site
and identify the Web site publisher and content author.
    We are also interested in comments identifying any publicly
available sources of information containing the specific data
aggregation in question. Discuss how these aggregated values may be
different from or similar to data that are already publicly available.
In your comments, please identify the manner and location in which the
aggregated value for each specific data element you identify is
available, including a citation. If the data are physically published,
such as in a book, industry trade publication, or federal agency
publication, provide the title, volume number (if applicable),
author(s), publisher, publication date, frequency of publication, and
ISBN, or other identifier. For data published on a Web site, provide
the address of the Web site and the date you last visited the Web site
and identify the Web site publisher and content author.
    Avoid conclusory and unsubstantiated statements or general
assertions regarding potential harm. Please be as specific as possible
in your comments and include all information necessary for the EPA to
evaluate your comments.
    Parties who wish further information about this Federal Register
notice or about OAP's aggregation of information designated or claimed
as CBI may contact the person listed in the FOR FURTHER INFORMATION
CONTACT section.

    Dated: June 2, 2014.
Paul Gunning,
Acting Director, Office of Atmospheric Programs.
[FR Doc. 2014-13425 Filed 6-6-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 180 (Friday, September 16, 2016)]
[Notices]
[Pages 63753-63754]
[FR Doc No: 2016-22264]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL16-71-000]

Notice of Institution of Section 206 Proceeding and Refund
Effective Date

Monongahela Power Company
Potomac Edison Company
West Penn Power Company
AEP Indiana Michigan Transmission Company, Inc.
AEP Kentucky Transmission Company, Inc.
AEP Ohio Transmission Company, Inc.
AEP West Virginia Transmission Company, Inc.
Appalachian Power Company
Indiana Michigan Power Company
Kentucky Power Company
Kingsport Power Company
Ohio Power Company
Wheeling Power Company
Commonwealth Edison Company
Commonwealth Edison Company of Indiana, Inc.
Dayton Power and Light Company
Virginia Electric and Power Company
Public Service Electric and Gas Company
PECO Energy Company
PPL Electric Utilities Corporation
Baltimore Gas and Electric Company
Jersey Central Power & Light Company
Metropolitan Edison Company
Pennsylvania Electric Company
Potomac Electric Power Company
Atlantic City Electric Company
Delmarva Power & Light Company
UGI Utilities Inc.
Allegheny Electric Cooperative, Inc.
CED Rock Springs, LLC
Old Dominion Electric Cooperative
Rockland Electric Company
Duquesne Light Company
Neptune Regional Transmission System, LLC
Trans-Allegheny Interstate Line Company
Linden VFT, LLC
American Transmission Systems, Incorporated
City of Cleveland, Department of Public Utilities, Division of
Cleveland Public Power

Duke Energy Ohio, Inc.
Duke Energy Kentucky, Inc.
City of Hamilton, OH
Hudson Transmission Partners, LLC
East Kentucky Power Cooperative, Inc.
City of Rochelle
ITC Interconnection LLC
PJM Interconnection, L.L.C.

    On August 26, 2016, the Commission issued an order in Docket No.
EL16-71-000, pursuant to section 206 of the Federal Power Act (FPA), 16
U.S.C. 824e (2012), instituting an investigation into whether the PJM
Transmission Owners are complying with their Order No. 890 obligations.
Monongahela Power Company et al., 156 FERC ] 61,134 (2016).
    The refund effective date in Docket No. EL16-71-000, established
pursuant to section 206(b) of the FPA, will be the date of publication
of this notice in the Federal Register.
    Any interested person desiring to be heard in Docket No. EL16-71-
000 must file a notice of intervention or motion to intervene, as
appropriate, with the Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426, in accordance with Rule 214 of the
Commission's Rules of Practice and Procedure, 18 CFR 385.214, within 21
days of the date of issuance of the order.

    Dated: September 8, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-22264 Filed 9-15-16; 8:45 am]
 BILLING CODE 6717-01-P


MEMORANDUM

TO:  Portland Cement NESHAP Docket

FROM:  Keith Barnett, USEPA/OAQPS/SPPD/MMG

DATE:  March 5, 2008

SUBJECT:  Meeting on Section 114 Data Analysis

On March 5, 2008 a teleconference was held between representatives of
the USEPA and representatives of the Portland Cement Association.  The
purpose of the call was to discuss the methodology being used to analyze
the data obtained by EPA through their section 114 data request.

USEPA Representatives

Keith Barnett, USEPA

Mike Laney, RTI International

PCA Representatives

Andy O’Hare, Portland Cement Association

Mike Pelan, Lafarge

Tim Matz, Lehigh Cement

Meeting Summary

This was a general discussion where the contractor (RTI) described the
methodology being used to calculate mercury emission form the submitted
data.

In addition, the question was asked if any cement kilns had CO2
monitors.  No one was aware of any.

EPA also mentioned that the Sector Based Assessment Group was preparing
a risk analysis for the Portland Cement Industry as part of a report to
the Science Advisory Board.  The purpose was only to get SAB inputs on
methodology, and it was not intended to be an actual assessment of risk
for the cement industry.

 PAGE

 PAGE   5


[Federal Register Volume 77, Number 152 (Tuesday, August 7, 2012)]
[Notices]
[Pages 47131-47136]
[FR Doc No: 2012-19210]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67552; File No. SR-NYSEArca-2012-55]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change Relating to the Listing and Trading of
the STARTM Global Buy-Write ETF Under NYSE Arca Equities
Rule 8.600

August 1, 2012.

I. Introduction

    On May 31, 2012, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or

``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule
change to list and trade shares (``Shares'') of the STARTM
Global Buy-Write ETF (``Fund'') under NYSE Arca Equities Rule 8.600.
The proposed rule change was published for comment in the Federal
Register on June 18, 2012.\3\ The Commission received no comments on
the proposed rule change. This order grants approval of the proposed
rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 67183 (June 12,
2012), 77 FR 36314 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Fund pursuant
to NYSE Arca Equities Rule 8.600, which governs the listing and trading
of Managed Fund Shares on the Exchange. The Shares will be offered by
AdvisorShares Trust (``Trust''), a statutory trust organized under the
laws of the State of Delaware and registered with the Commission as an
open-end management investment company.\4\ The investment adviser to
the Fund is AdvisorShares Investments, LLC (``Adviser''). Partnervest
Advisory Services, LLC serves as investment sub-adviser to the Fund
(``Sub-Adviser'') and provides day-to-day portfolio management of the
Fund. Foreside Fund Services, LLC is the principal underwriter and
distributor of the Fund's Shares. The Bank of New York Mellon serves as
administrator, custodian, and transfer agent for the Fund. The Exchange
has represented that neither the Adviser nor the Sub-Adviser is
affiliated with a broker-dealer.\5\
---------------------------------------------------------------------------

    \4\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). On October 28, 2011, the Trust filed an
amendment to its registration statement on Form N-1A under the
Securities Act of 1933 (``1933 Act'') and under the 1940 Act
relating to the Fund (File Nos. 333-157876 and 811-22110)
(``Registration Statement''). In addition, the Commission has issued
an order granting certain exemptive relief to the Trust under the
1940 Act. See Investment Company Act Release No. 28822 (July 20,
2009) (File No. 812-13488).
    \5\ See NYSE Arca Equities Rule 8.600, Commentary .06. In the
event (a) the Adviser or the Sub-Adviser becomes newly affiliated
with a broker-dealer, or (b) any new adviser or sub-adviser becomes
affiliated with a broker-dealer, it will implement a fire wall with
respect to such broker-dealer regarding access to information
concerning the composition and/or changes to the portfolio, and will
be subject to procedures designed to prevent the use and
dissemination of material, non-public information regarding such
portfolio.
---------------------------------------------------------------------------

    The Fund's investment objective is to seek consistent repeatable
returns across all market cycles. The Fund is a ``fund-of-funds'' and,
under normal market conditions,\6\ intends to invest at least 60% of
its total assets in exchange-traded funds (``ETFs'') \7\ and exchange-
traded notes (``ETNs'') \8\ that seek to track a diversified basket of
global indices and investment sectors, and in exchange-traded pooled
investment vehicles that invest directly in commodities or currencies
and that are registered pursuant to the 1933 Act (together with ETFs
and ETNs, ``Underlying ETPs'') \9\ that meet certain selection criteria
established by the Sub-Adviser. The selection criteria include size,
historical track record, diversification among indices, the correlation
of an index to other indices, and an ability to write exchange-listed
covered call options on the particular Underlying ETP.\10\ An
Underlying ETP may be disposed of should it no longer meet the
selection criteria.
---------------------------------------------------------------------------

    \6\ The term ``under normal market conditions'' includes, but is
not limited to, the absence of extreme volatility or trading halts
in the equity markets or the financial markets generally;
operational issues causing dissemination of inaccurate market
information; or force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot, or labor disruption, or any similar intervening
circumstance.
    \7\ For purposes of this proposed rule change, ETFs are
securities registered under the 1940 Act such as those listed and
traded on the Exchange under NYSE Arca Equities Rules 5.2(j)(3),
8.100, and 8.600.
    \8\ For purposes of this proposed rule change, ETNs are
securities that are registered pursuant to the 1933 Act such as
those listed and traded on the Exchange pursuant to NYSE Arca
Equities Rule 5.2(j)(6).
    \9\ Underlying ETPs include, in addition to ETFs and ETNs, the
following securities: Trust Issued Receipts (as described in NYSE
Arca Equities Rule 8.200); Commodity-Based Trust Shares (as
described in NYSE Arca Equities Rule 8.201); Currency Trust Shares
(as described in NYSE Arca Equities Rule 8.202); Commodity Index
Trust Shares (as described in NYSE Arca Equities Rule 8.203); and
closed-end funds. The Underlying ETPs all will be listed and traded
in the U.S. on registered exchanges. The ETFs in which the Fund may
invest will primarily be index-based ETFs that hold substantially
all of their assets in securities representing a specific index.
    \10\ The options in which the Fund will invest will be U.S.
exchange-listed.
---------------------------------------------------------------------------

    The Fund currently intends to invest primarily in the securities of
ETFs consistent with the requirements of Section 12(d)(1) of the 1940
Act, or any rule, regulation, or order of the Commission or
interpretation thereof. The Underlying ETPs in which the Fund will
invest will primarily be Underlying ETPs that hold substantially all of
their assets in securities representing a country (or region) specific
index.
    The Sub-Adviser seeks to achieve the Fund's investment objective by
using a proprietary overwrite strategy known as Volatility Enhanced
Global Appreciation (``VEGA''). Through VEGA, the Fund will invest in
Underlying ETPs in combination with call options on generally all such
Underlying ETPs to seek cumulative price appreciation from the
portfolio's global exposure while generating an additional return
stream from the sale of covered call and/or cash-secured put
options.\11\ While the Fund is permitted to invest up to 40% of its
total assets in call options on Underlying ETPs, the Adviser expects
that, under normal market conditions, the Fund will invest no more than
15% in such call options on a daily basis. To the extent cash and cash
equivalents in the Fund's portfolio serve as collateral for cash-
secured put options, such cash and cash equivalents may not be invested
in Underlying ETPs, additional options, or other similar investments in
pursuit of the Fund's investment objective. Rather, on a day-to-day
basis, such collateral may be invested in U.S. Government securities,
short-term, high-quality fixed income securities, money market
instruments, cash, and other cash equivalents with maturities of one
year or less, or Underlying ETPs that hold such investments.\12\
---------------------------------------------------------------------------

    \11\ A covered call option involves holding a long position in a
particular asset, in this case shares of an Underlying ETP, and
writing a call option on that same asset with the goal of realizing
additional income from the option premium. A put option is a
contract that gives the owner of the option the right to sell a
specified amount of the asset underlying the option at a specified
price (``strike price'') within a specified time. When a put option
is exercised or assigned, the writer of the option is obligated to
purchase the requisite amount of the asset underlying the option to
complete the sale. A put option is considered cash-secured when the
writer of the put option segregates an amount of cash or cash
equivalents sufficient to cover the purchase price of the asset
underlying the option.
    \12\ All options written on indices or securities must be
covered. A written call option on a security may be covered if a
fund: (1) Owns the security underlying the call until the option is
exercised or expires; (2) holds an American-style call on the same
security as the call written with an exercise price (a) no greater
than the exercise price of the call written or (b) greater than the
exercise price of the call written if the difference is maintained
by the fund in cash or other liquid assets designated on the fund's
records or placed in a segregated account with the fund's custodian;
(3) has an absolute and immediate right to acquire the security
without additional cost (or if additional consideration is required,
cash or other liquid assets in such amount have been segregated); or
(4) segregates cash or other liquid assets on the fund's records or
with the custodian in an amount equal to (when added to any margin
on deposit) the current market value of the call option, but not
less than the exercise price, marked to market daily. If the call
option is exercised by the purchaser during the option period, the
seller is required to deliver the underlying security against
payment of the exercise price or pay the difference. The seller's
obligation terminates upon expiration of the option period or when
the seller executes a closing purchase transaction with respect to
such option. All put options written by the Fund will be covered by:
(1) Segregating cash, cash equivalents, such as U.S. Treasury
securities or overnight repurchase agreements, or other liquid
assets on the Fund's records or with the custodian having a value at
least equal to the exercise price of the option (less cash received,
if any); or (2) holding a put option on the same security as the
option written where the exercise price of the written put option is
(i) equal to or higher than the exercise price of the option written
or (ii) less than the exercise price of the option written provided
the Fund segregates cash or other liquid assets in the amount of the
difference.

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

    The Sub-Adviser will use VEGA, a proprietary quantitative and
qualitative investment process, to determine the optimal Underlying
ETPs and options for the strategy. The process focuses on the
performance of a comprehensive portfolio of assets based on the
combination of risk, return, and their correlation to each other.
Consistent with VEGA, call options will be sold on generally all of the
Underlying ETPs at a strike price equivalent to targets based on
volatility and quantitative criteria. As calls are covered and/or
expire, additional options on the Underlying ETPs will be sold. The
average time until expiration for the option portfolio will be
typically one quarter (91 days) or less, so that premiums may be
received on options on Underlying ETPs approximately four times per
year. The Sub-Adviser, however, will reserve the right to close out or
enter into options on a more or less frequent basis in its discretion
if it believes it is in the best interest of the Fund. The Sub-Adviser
periodically will monitor the performance of the Fund's portfolio and
systematically rebalance and initiate tactical shifts in the underlying
investments when the strategy indicates it is both optimal and
beneficial to do so.
    VEGA is designed to generate quarterly returns in the form of
premiums received from the sale of covered call and/or cash-secured put
options. The amount of the premium will typically be determined at the
start of the quarter, and realized either at expiration or sooner if
the strategy determines that conditions warrant covering the short
option position beforehand.\13\
---------------------------------------------------------------------------

    \13\ The risks of covered call writing include the potential for
the market to rise sharply. In such instance, the buyer of the call
option would likely acquire the Underlying ETP from the Fund and the
return on that Underlying ETP would be limited to the premium
received and the difference between the strike price and the
purchase price until such time as the Underlying ETP is repurchased
as applicable. The risks of cash-secured put writing include the
potential for the price of the Underlying ETP to decline
significantly causing the put writer, the Fund, to have an
unrealized loss due to the high stock purchase price.
---------------------------------------------------------------------------

    Except for premium amounts required for transactional and portfolio
management purposes, the Sub-Adviser, in its discretion, may allocate
the accumulated premium in ``principal protection'' and/or
``reinvestment strategies,'' as described below.
    The ``principal protection'' feature is intended as a means to
profit and/or hedge against potential price declines of 20% or greater
of Underlying ETPs. The feature may be implemented when volatility
declines and/or security prices rise, and the Sub-Adviser determines
the cost of principal protection to be beneficial. The cost of the
protection is expected to be paid from accumulated option premiums, but
principal may be used. The use of principal protection entails the
purchase of put options on Underlying ETPs representing some or all of
the Fund's portfolio holdings. The risk of buying long puts is limited
to the loss of the premium paid for the purchase of the put. Option
premiums received by the Fund will remain in cash or cash equivalents
or may be invested in Underlying ETPs that invest primarily in U.S.
treasuries or other cash equivalent securities.
    The Sub-Adviser also will utilize a ``reinvestment strategy''
whereby accumulated option premiums may be reinvested back into
additional shares of Underlying ETPs held by the Fund based on the Sub-
Adviser's view of the market.

Principal Fund Investments

    The Fund, through its investment in Underlying ETPs, may invest in
equity securities. Equity securities represent ownership interests in a
company or partnership and consist of common stocks, preferred stocks,
warrants to acquire common stock, securities convertible into common
stock, and investments in master limited partnerships, rights, and
depositary receipts, including American Depositary Receipts (``ADRs'')
and Global Depositary Receipts (``GDRs''). The Fund, through its
investment in Underlying ETPs, may purchase equity securities traded in
the U.S. on registered exchanges or the over-the-counter market.
    The Fund, through its investment in Underlying ETPs, may invest in
the equity securities of foreign issuers, including the securities of
foreign issuers in emerging countries. Emerging or developing markets
exist in countries that are considered to be in the initial stages of
industrialization.
    The Fund, through its investment in Underlying ETPs, may invest in
closed-end funds, pooled investment vehicles that are registered under
the 1940 Act and whose shares are listed and traded on U.S. national
securities exchanges.
    The Fund, or the Underlying ETPs in which it invests, may invest in
U.S. government securities. Securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities include U.S. Treasury
securities, which are backed by the full faith and credit of the U.S.
Treasury and which differ only in their interest rates, maturities, and
times of issuance. Certain U.S. government securities are issued or
guaranteed by agencies or instrumentalities of the U.S. government
including, but not limited to, obligations of U.S. government agencies
or instrumentalities such as Fannie Mae, Freddie Mac, the Government
National Mortgage Association, the Small Business Administration, the
Federal Farm Credit Administration, the Federal Home Loan Banks, Banks
for Cooperatives (including the Central Bank for Cooperatives), the
Federal Land Banks, the Federal Intermediate Credit Banks, the
Tennessee Valley Authority, the Export-Import Bank of the United
States, the Commodity Credit Corporation, the Federal Financing Bank,
the Student Loan Marketing Association, the National Credit Union
Administration, and the Federal Agricultural Mortgage Corporation.
    The Fund, through its investments in Underlying ETPs from time to
time, in the ordinary course of business, may purchase securities on a
when-issued or delayed-delivery basis (i.e., delivery and payment can
take place between a month and 120 days after the date of the
transaction).
    The Fund, or the Underlying ETPs in which it invests, may invest in
U.S. Treasury zero-coupon bonds. The Fund, through its investment in
ETFs, may invest in shares of real estate investment trusts.

Other Investments

    To respond to adverse market, economic, political, or other
conditions, the Fund may invest 100% of its total assets, without
limitation, in high-quality debt securities and money market
instruments either directly or through Underlying ETPs. The Fund may be
invested in this manner for extended periods depending on the Sub-
Adviser's assessment of market conditions. Debt securities and money
market instruments include shares of other mutual funds, commercial
paper, certificates of deposit, bankers' acceptances, U.S. Government
securities, repurchase agreements, and bonds that are BBB or higher.
The Fund may also invest a substantial portion of its assets in such
instruments at any time to maintain liquidity or pending

selection of investments in accordance with its policies.
    The Fund may invest in derivatives, including, for example,
options, futures, options on futures, and swaps. While the Fund
currently does not intend to invest in swaps, it may invest up to 10%
of its total assets in swaps. The Fund may invest in derivatives to
gain market exposure, enhance returns, or hedge against market
declines.
    Other than options on Underlying ETPs in which the Fund may invest,
as described above, the Fund may trade U.S. exchange-listed put and
call options on other securities, securities indices, and currencies,
as the Sub-Adviser determines is appropriate in seeking the Fund's
investment objective and except as restricted by the Fund's investment
limitations.\14\ While the Fund may invest in put and call options on
other securities, the Adviser expects that, under normal market
conditions, the Fund will invest from 0% up to 10% in such put and call
options on a daily basis.
---------------------------------------------------------------------------

    \14\ See supra note 10.
---------------------------------------------------------------------------

    The Fund may invest up to 10% of its total assets in futures
contracts and related options on futures contracts for bona fide
hedging; attempting to offset changes in the value of securities held
or expected to be acquired or be disposed of; attempting to gain
exposure to a particular market, index, or instrument; or other risk
management purposes. To the extent the Fund uses futures and/or options
on futures, it will do so in accordance with Rule 4.5 under the
Commodity Exchange Act (``CEA'').\15\
---------------------------------------------------------------------------

    \15\ The Exchange represents that the Trust, on behalf of all of
its series, including the Fund, has filed a notice of eligibility
for exclusion from the definition of the term ``commodity pool
operator'' in accordance with Rule 4.5 and, therefore, the Fund is
not subject to registration or regulation as a commodity pool
operator under the CEA.
---------------------------------------------------------------------------

    The Fund may enter into repurchase agreements with financial
institutions, which may be deemed to be loans. The Fund also may enter
into reverse repurchase agreements without limit as part of the Fund's
investment strategy.
    The Fund may not with respect to 75% of its total assets, purchase
securities of any issuer (except securities issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, or shares of
investment companies) if, as a result, (i) more than 5% of its total
assets would be invested in the securities of such issuer, or (ii) more
than 10% of the outstanding voting securities of any one issuer would
be held by the Fund. For purposes of this policy, the issuer of the
underlying security will be deemed to be the issuer of any respective
depositary receipt.
    The Fund may not invest 25% or more of its total assets in the
securities of one or more issuers conducting their principal business
activities in the same industry or group of industries. This limitation
does not apply to investments in securities issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, or shares of
investment companies. The Fund will not invest 25% or more of its total
assets in any investment company that so concentrates.
    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment),
including Rule 144A securities and loan participation interests. The
Fund will monitor its portfolio liquidity on an ongoing basis to
determine whether, in light of current circumstances, an adequate level
of liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid securities. Illiquid securities include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.
    According to the Registration Statement, the Fund will seek to
qualify for treatment as a Regulated Investment Company under the
Internal Revenue Code.
    Except for Underlying ETPs that may hold non-U.S. issues, the Fund
will not otherwise invest in non-U.S.-registered issues.
    The Fund does not intend to invest in leveraged, inverse, or
inverse leveraged Underlying ETPs. The Fund's investments will be
consistent with the Fund's investment objective and will not be used to
enhance leverage. That is, while the Fund will be permitted to borrow
as permitted under the 1940 Act, the Fund's investments will not be
used to seek performance that is the multiple or inverse multiple
(i.e., 2Xs and 3Xs) of the Fund's broad-based securities market index
(as defined in Form N-1A).\16\
---------------------------------------------------------------------------

    \16\ The Fund's broad-based securities market index, which is to
be determined, will be identified in an amendment to the
Registration Statement.
---------------------------------------------------------------------------

    The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600. The Exchange represents
that, for initial and/or continued listing, the Fund will be in
compliance with Rule 10A-3 under the Exchange Act,\17\ as provided by
NYSE Arca Equities Rule 5.3. A minimum of 100,000 Shares for the 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 net asset value (``NAV'') per Share will be calculated daily
and that the NAV and the Disclosed Portfolio will be made available to
all market participants at the same time.
---------------------------------------------------------------------------

    \17\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    Additional information regarding the Trust, Fund, Shares, Fund's
investment strategies, risks, creation and redemption procedures, fees,
portfolio holdings and disclosure policies, distributions and taxes,
availability of information, trading rules and halts, and surveillance
procedures, among other things, can be found in the Notice and/or the
Registration Statement, as applicable.\18\
---------------------------------------------------------------------------

    \18\ See Notice and Registration Statement, supra notes 3 and 4,
respectively.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \19\
and the rules and regulations thereunder applicable to a national
securities exchange.\20\ In particular, the Commission finds that the
proposed rule change is consistent with the requirements of Section
6(b)(5) of the Act,\21\ which requires, among other things, that the
Exchange's rules be 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, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
The Commission notes that the Fund and the Shares must comply with the
requirements of NYSE Arca Equities Rule 8.600 to be listed and traded
on the Exchange.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f.
    \20\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\22\ which sets forth Congress's finding that it is in the public
interest and appropriate for the protection of investors and the

maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last-
sale information for the Shares will be available via the Consolidated
Tape Association (``CTA'') high-speed line, and, for the Underlying
ETPs, will be available from the national securities exchanges on which
they are listed. Quotation and last-sale information for the U.S.
exchange-listed options in which the Fund will invest will be available
from the applicable U.S. options exchange via the Options Price
Reporting Authority. In addition, the Portfolio Indicative Value, as
defined in NYSE Arca Equities Rule 8.600(c)(3), will be widely
disseminated by one or more major market data vendors at least every 15
seconds during the Core Trading Session.\23\ On each business day,
before commencement of trading in Shares in the Core Trading Session on
the Exchange, the Fund will disclose on its Web site the Disclosed
Portfolio, as defined in NYSE Arca Equities Rule 8.600(c)(2), that will
form the basis for the Fund's calculation of NAV at the end of the
business day.\24\ The Fund will calculate NAV once each business day as
of the regularly scheduled close of trading on the New York Stock
Exchange (``NYSE'') (normally 4:00 p.m., Eastern Time). Information
regarding market price and trading volume of the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers. In addition, the intra-day, closing, and
settlement prices of the other portfolio securities and instruments
held by the Fund will be readily available from the national securities
exchanges trading such securities, automated quotation systems,
published or other public sources, or on-line information services,
such as Bloomberg or Reuters. The Fund's Web site will include a form
of the prospectus for the Fund and additional data relating to NAV and
other applicable quantitative information.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \23\ According to the Exchange, several major market data
vendors widely disseminate Portfolio Indicative Values taken from
the CTA or other data feeds.
    \24\ On a daily basis, the Adviser will disclose for each
portfolio security and other financial instrument of the Fund the
following information on the Fund's Web site: Ticker symbol (if
applicable), name of security and financial instrument, number of
shares or dollar value of securities and financial instruments held
in the portfolio, and percentage weighting of the security and
financial instrument in the portfolio. The Web site information will
be publicly available at no charge.
---------------------------------------------------------------------------

    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Commission notes that the Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and the Disclosed Portfolio
will be made available to all market participants at the same time.\25\
In addition, trading in the Shares will be subject to NYSE Arca
Equities Rule 8.600(d)(2)(D), which sets forth circumstances under
which Shares of the Fund may be halted. The Exchange may halt trading
in the Shares if trading is not occurring in the securities and/or the
financial instruments comprising the Disclosed Portfolio of the Fund,
or if other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present.\26\ Further, the
Commission notes that the Reporting Authority that provides the
Disclosed Portfolio must implement and maintain, or be subject to,
procedures designed to prevent the use and dissemination of material,
non-public information regarding the actual components of the
portfolio.\27\ The Exchange states that it has a general policy
prohibiting the distribution of material, non-public information by its
employees. The Exchange also states that neither the Adviser nor the
Sub-Adviser is affiliated with a broker-dealer.\28\ Moreover, the
Exchange represents that it is able to obtain information from the U.S.
exchanges, all of which are members of the Intermarket Surveillance
Group (``ISG''), on which the Underlying ETPs and options are listed
and traded.
---------------------------------------------------------------------------

    \25\ See NYSE Arca Equities Rule 8.600(d)(1)(B).
    \26\ See NYSE Arca Equities Rule 8.600(d)(2)(C) (providing
additional considerations for the suspension of trading in or
removal from listing of Managed Fund Shares on the Exchange). With
respect to trading halts, the Exchange may consider other relevant
factors in exercising its discretion to halt or suspend trading in
the Shares of the Fund. Trading in Shares of the Fund will be halted
if the circuit breaker parameters in NYSE Arca Equities Rule 7.12
have been reached. Trading also may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable.
    \27\ See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii).
    \28\ See supra note 5. The Commission notes that an investment
adviser to an open-end fund is required to be registered under the
Investment Advisers Act of 1940 (``Advisers Act''). As a result, the
Adviser and Sub-Adviser and their related personnel are subject to
the provisions of Rule 204A-1 under the Advisers Act relating to
codes of ethics. This Rule requires investment advisers to adopt a
code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
---------------------------------------------------------------------------

    The Exchange represents that the Shares are deemed to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
In support of this proposal, the Exchange has made representations,
including:
    (1) The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) The Exchange's surveillance procedures applicable to derivative
products, which include Managed Fund Shares, are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws.
    (4) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders (``ETP Holders'') in an Information
Bulletin of the special characteristics and risks associated with
trading the Shares. Specifically, the Information Bulletin will discuss
the following: (a) The procedures for purchases and redemptions of
Shares in Creation Unit aggregations (and that Shares are not
individually redeemable); (b) NYSE Arca Equities Rule 9.2(a), which
imposes a duty of due diligence on its ETP Holders to learn the
essential facts relating to every customer prior to trading the Shares;
(c) the risks involved in trading the Shares during the Opening and
Late Trading Sessions when an updated Portfolio Indicative Value will
not be calculated or publicly disseminated; (d) how information
regarding the Portfolio Indicative Value is disseminated; (e) the
requirement that

ETP Holders deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (f) trading information.
    (5) For initial and/or continued listing, the Fund will be in
compliance with Rule 10A-3 under the Exchange Act,\29\ as provided by
NYSE Arca Equities Rule 5.3.
---------------------------------------------------------------------------

    \29\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (6) The options contracts held by the Fund will be U.S. exchange-
listed. Except for Underlying ETPs that may hold non-U.S. issues, the
Fund will not otherwise invest in non-U.S.-registered issues. The
Exchange may obtain information via ISG from other exchanges that are
members of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. In addition, the Exchange is able to
obtain information from the U.S. exchanges, all of which are ISG
members, on which the Underlying ETPs and options are listed and
traded.
    (7) The Fund does not intend to invest in leveraged, inverse, or
inverse leveraged Underlying ETPs. The Fund's investments will be
consistent with the Fund's investment objective and will not be used to
enhance leverage.
    (8) While the Fund is permitted to invest up to 40% of its total
assets in call options on Underlying ETPs, the Adviser expects that,
under normal market conditions, the Fund will invest no more than 15%
in such call options on a daily basis.
    (9) The Fund may invest up to 10% of its total assets in futures
contracts and related options on futures contracts. While the Fund may
invest in put and call options on securities other than Underlying
ETPs, the Adviser expects that, under normal market conditions, the
Fund will invest from 0% to up to 10% in such put and call options on a
daily basis. While the Fund currently does not intend to invest in
swaps, it may invest up to 10% of its total assets in swaps.
    (10) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment),
including Rule 144A securities and loan participation interests.
    (11) A minimum of 100,000 Shares of the Fund will be outstanding at
the commencement of trading on the Exchange.
    This approval order is based on all of the Exchange's
representations, including those set forth above and in the Notice, and
the Exchange's description of the Fund.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \30\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\31\ that the proposed rule change (SR-NYSEArca-2012-55) be, and it
hereby is, approved.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19210 Filed 8-6-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 66 (Wednesday, April 6, 2022)]
[Proposed Rules]
[Pages 19813-19815]
[FR Doc No: 2022-07159]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2022-0394; Project Identifier MCAI-2021-00904-T]
RIN 2120-AA64

Airworthiness Directives; De Havilland Aircraft of Canada Limited
(Type Certificate Previously Held by Bombardier, Inc.) Airplanes

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 De Havilland Aircraft of Canada Limited Model DHC-8-401 and
-402 airplanes. This proposed AD was prompted by reports of nose wheel
steering (NWS) hydraulic motors jamming during pushback or towing. This
proposed AD would require doing an inspection to determine the part
number and serial number of the NWS hydraulic motor, and re-identifying
or replacing the NWS hydraulic motor if necessary. This proposed AD
would also prohibit the installation of certain NWS hydraulic motors.
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 May 23,
2022.

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 service information identified in this NPRM, contact De
Havilland Aircraft of Canada Limited, Q-Series Technical Help Desk, 123
Garratt Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone 416-375-
4000; fax<PHONE_NUMBER>; email [email protected]; internet https://dehavilland.com. You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2022-0394; 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, any comments
received, and other information. The street address for Docket
Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Elizabeth Dowling, Aerospace Engineer,
Mechanical Systems and Administrative Services Section, FAA, New York
ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email [email protected].

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-2022-0394; Project Identifier
MCAI-2021-00904-T'' 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
the 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
Elizabeth Dowling, Aerospace Engineer, Mechanical Systems and
Administrative Services Section, FAA, New York ACO Branch, 1600 Stewart
Avenue, Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>; fax 516-
794-5531; email [email protected]. Any commentary that the FAA
receives which is not specifically designated as CBI will be placed in
the public docket for this rulemaking.

Background

    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued TCCA AD CF-2021-28, dated August 5,
2021 (also referred to after this as the Mandatory Continuing
Airworthiness Information, or the MCAI), to correct an unsafe condition
for certain De Havilland Aircraft of Canada Limited Model DHC-8-401 and
-402 airplanes. You may examine the MCAI in the AD docket at https://www.regulations.gov by searching for and locating Docket No. FAA-2022-
0394.
    This proposed AD was prompted by reports of NWS hydraulic motors
jamming during pushback or towing caused by worn out piston rod shoes.
An investigation revealed that a design changed had been introduced by
the hydraulic motor supplier that corrected this condition but this
change was not documented. Thereby, resulting in a loss of
configuration control for this component. The FAA is proposing this AD
to address a possible NWS hydraulic motor jam, which could lead to a
runway excursion and loss of controllability of the airplane. See the
MCAI for additional background information.

Related Service Information Under 1 CFR Part 51

    De Havilland Aircraft of Canada Limited has issued Service Bulletin
84-32-164, Revision A, dated May 13, 2021. This service information
describes procedures for doing an inspection to determine the part
number and serial number of the NWS hydraulic motor, and re-
identifying, the redesigned NWS hydraulic motor, or replacing, the
original NWS hydraulic motor, as necessary.
    This service information 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

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to the FAA's bilateral agreement with the State of Design Authority,
the FAA has been notified of the unsafe condition described in the MCAI
and service information referenced above. The FAA is proposing this AD
because the FAA evaluated all the relevant information and determined
the unsafe condition described previously is likely to exist or develop
on other products of the same type design.

Proposed AD Requirements in This NPRM

    This proposed AD would require accomplishing the actions specified
in the service information already described. This proposed AD would
also prohibit the installation of certain NWS hydraulic motors.

Costs of Compliance

    The FAA estimates that this AD, if adopted as proposed, would
affect 52 airplanes of U.S. registry. The FAA estimates the following
costs to comply with this proposed AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
               Labor cost                   Parts cost         Cost per product         Cost on U.S. operators
----------------------------------------------------------------------------------------------------------------
Up to 11 work-hours x $85 per hour =                 $80  Up to $1,015..............  Up to $52,780.
 $935.
----------------------------------------------------------------------------------------------------------------

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) Will not affect intrastate aviation in Alaska, 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.

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:

De Havilland Aircraft of Canada Limited (Type Certificate Previously
Held by Bombardier, Inc.): Docket No. FAA-

2022-0394; Project Identifier MCAI-2021-00904-T.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) by May 23, 2022.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to De Havilland Aircraft of Canada Limited Model
DHC-8-401 and -402 airplanes, certificated in any category, serial
numbers 4001 and 4003 through 4622 inclusive.

(d) Subject

    Air Transport Association (ATA) of America Code 32, Landing
gear.

(e) Unsafe Condition

    This AD was prompted by reports of nose wheel steering (NWS)
hydraulic motors jamming during pushback or towing caused by worn
out piston rod shoes. The FAA is issuing this AD to address a
possible NWS hydraulic motor jam, which could lead to a runway
excursion and loss of controllability of the airplane.

(f) Compliance

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

(g) Required Actions

    Within 12,000 flight hours or 72 months, whichever occurs first,
after the effective date of this AD: Inspect to determine the part
number and serial number of the NWS hydraulic motor, and re-identify
or replace the NWS hydraulic motor, as applicable, in accordance
with paragraph 3.B. of the Accomplishment Instructions of De
Havilland Aircraft of Canada Service Bulletin 84-32-164, Revision A,
dated May 13, 2021.

(h) Parts Installation Prohibition

    As of the effective date of this AD, no person may install a NWS
hydraulic motor, part number (P/N) RS1267-1, P/N RS1267-1 MOD SB 32-
13, P/N RS1267-2, P/N RS1267-2 MOD SB 32-13, and P/N RS1267-3, on
any airplane.

(i) No Return of Parts

    Although De Havilland Aircraft of Canada Service Bulletin 84-32-
164, Revision A, dated May 13, 2021, specifies to return certain
parts to the manufacturer, this AD does not include that
requirement.

(j) Credit for Previous Actions

    This paragraph provides credit for actions required by paragraph
(g) of this AD, if those actions were performed before the effective
date of this AD using De Havilland Aircraft of Canada Limited
Service Bulletin 84-32-164, dated April 20, 2020.

(k) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO 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 responsible Flight Standards Office, as appropriate. If
sending information directly to the manager of the certification
office, send it to ATTN: Program Manager, Continuing Operational
Safety, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before
using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, New York ACO
Branch, FAA; or Transport Canada Civil Aviation (TCCA); or De
Havilland Aircraft of Canada Limited's TCCA Design Approval
Organization (DAO). If approved by the DAO, the approval must
include the DAO-authorized signature.

(l) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) TCCA AD CF-2021-28, dated August 5, 2021, for related
information. This MCAI may be found in the AD docket on the internet
at https://www.regulations.gov by searching for and locating Docket
No. FAA-2022-0394.
    (2) For more information about this AD, contact Elizabeth
Dowling, Aerospace Engineer, Mechanical Systems and Administrative
Services Section, FAA, New York ACO Branch, 1600 Stewart Avenue,
Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>; fax 516-794-
5531; email [email protected].
    (3) For service information identified in this AD, contact De
Havilland Aircraft of Canada Limited, Q-Series Technical Help Desk,
123 Garratt Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone
416-375-4000; fax<PHONE_NUMBER>; email [email protected]; internet
https://dehavilland.com. You may view this service information at
the FAA, Airworthiness Products Section, Operational Safety Branch,
2200 South 216th St., Des Moines, WA. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

    Issued on March 31, 2022.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2022-07159 Filed 4-5-22; 8:45 am]
BILLING CODE 4910-13-P