[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Notices]
[Pages 22546-22549]
[FR Doc No: 2019-10226]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85846; File No. SR-CboeBZX-2019-038]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule

May 13, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 30, 2019, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to amend its Fee Schedule. The text of the proposed rule
change is attached [sic] as Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to make a number of amendments to its fee
schedule for its equity options platform (``BZX Options''), effective
May 1, 2019.
NBBO Setter Tier
    The Exchange currently offers five NBBO Setter Tiers under Footnote
4 of the fee schedule which provide an additional rebate between $0.01
and $0.05 per contract for orders that establish a new National Best
Bid or Offer (``NBBO'') and which are appended with fee code PM and PN.
The Exchange proposes to amend the required criteria under NBBO Setter
Tier 3. NBBO Setter Tier 3 currently provides Members an additional
rebate of $0.03 per contract where the Member (i) has an ADAV \3\ in
Non-Customer orders greater than or equal to 0.80% of average OCV; \4\
and (ii) has an ADAV in Firm/Market Maker/Away MM orders that establish
a new NBBO greater than or equal to 0.05% of average OCV. The Exchange
proposes to amend the first prong to reduce the ADAV Non-Customer
requirement to 0.75% of average OCV (instead of 0.80%). The proposed
change intends to ease Tier 3's current criteria which the Exchange
hopes will encourage those Members who could not achieve the tier
previously to increase their order flow as a means to receive the
tier's enhanced.
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    \3\ ``ADAV'' means average daily added volume calculated as the
number of contracts added per day. See Exchange Fee Schedule.
    \4\ ``OCV'' means the total equity and ETF options volume that
clears in the Customer range at the Options Clearing Corporation
(``OCC'') for the month for which the fees apply, excluding volume
on any day that the Exchange experiences an Exchange System
Disruption and on any day with a scheduled early market close. See
Exchange Fee Schedule.
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QIP Tiers
    The Exchange currently offers two QIP Tiers under footnote 5, which
provide an additional rebate ranging from $0.02 to $0.04 per contract
for qualifying Market Maker \5\ orders that add liquidity in: (i) Penny
Pilot Securities that yield fee code PM and; (ii) Non-Penny Pilot
Securities that yield fee code NM. The additional rebate per contract
is for an order that adds liquidity to BZX Options in options classes
in which a Member is a Market Maker registered pursuant to Exchange
Rule 22.2. The Exchange no longer wishes to maintain these tiers, in
part due to the increased opportunities for rebates for Market Maker
orders, discussed more fully below. The Exchange therefore proposes to
eliminate both tiers from the fee schedule.
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    \5\ A Market Maker must be registered with BZX Options in an
average of 20% or more of the associated options series in a class
in order to qualify for QIP rebates for that class.
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Market Maker Penny Add Tiers
    The Exchange currently offers three Market Maker Penny Pilot Add
Volume Tiers (``MM Penny Add Tiers'') under footnote 6, which provide
an enhanced rebate between $0.33 and $0.42 per contract for qualifying
Market Maker orders which add liquidity in Penny Pilot securities \6\
and yield fee code PM. The Exchange now proposes to (i) modify the
required criteria under MM Penny Add Tiers 1 and 2, (ii) adopt six new
MM Penny Add Tiers and (iii) amend the rebate and required criteria for
current MM Penny Add Tier 3 (to be renumbered to Tier 9). The Exchange
believes the additional MM Penny Add Tiers will provide Members
additional opportunities and alternative means to receive enhanced
rebates for meeting the corresponding proposed criteria. The Exchange
believes the proposed tiers, along with the existing tiers, also
provide an incremental incentive for Members to strive for the highest
tier levels, which provide increasingly higher enhanced rebates.
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    \6\ ``Penny Pilot Securities'' are those issues quoted pursuant
to Exchange Rule 21.5, Interpretation and Policy .01.
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    First the Exchange proposes to modify the existing criteria under
MM Penny Add Tiers 1 and 2. Currently, MM Penny Add Tier 1 provides
that a Member will receive an enhanced rebate of $0.33 per contract
where the Member has an ADAV in Market Maker orders greater or equal to
0.05% of average OCV. The Exchange proposes to

increase the ADAV requirement to 0.10% of average OCV (instead of
0.05%). Under MM Penny Add Tier 2, Members receive an enhanced rebate
of $0.40 per contract where a Member has an ADAV in Market Maker orders
greater than or equal to 0.15% of average OCV. The Exchange proposes to
similarly increase the ADAV requirement under MM Penny Add Tier 2 to
0.20% of overage OCV (instead of 0.15%). The proposed increases are
designed to encourage entry of additional options orders to the
Exchange.
    Next, in connection with its proposal to adopt new MM Penny Add
Tiers, the Exchange proposes to add language in its Definitions section
defining ``ADRV''. Specifically, ADRV shall mean average daily removed
volume calculated as the number of shares removed per day.\7\ As
discussed below, certain MM Penny Add Tiers will include an ADRV
requirement as well. The Exchange notes that other exchanges maintain
incentive tiers for orders that add liquidity that utilize criteria
requiring Members to reach an ADRV threshold.\8\
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    \7\ Like ADAV (which means average daily volume calculated as
the number of contracts added to the Exchange) and ADV (which means
average daily volume calculated as the number of contracts added or
removed, combined, per day). ADRV will be calculated on a monthly
basis. Additionally, as with ADAV and ADV, the Exchange will exclude
from its calculation of ADRV shares added, removed, or routed on any
day that the Exchange's system experiences a disruption that lasts
for more than 60 minutes during Regular Trading Hours, on any day
with a scheduled early market close, and on the last Friday in June.
A member will be able to aggregate ADRV, ADAV and ADV) with other
Members that control, are controlled by, or are under common control
with such Member.
    \8\ See e.g., Cboe EDGA U.S. Equities Exchange Fee Schedule,
Footnote 1.
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    The Exchange proposes to add new MM Penny Add Tier 3, which would
provide an enhanced rebate of $0.40 per contract where a Member (i) has
an ADAV in Market Maker orders greater than or equal to 0.15% OCV and
(ii) Member has an ADRV in Market Maker orders greater than or equal to
0.15% OCV.
    The Exchange also proposes to adopt new MM Penny Add Tier 4, which
would provide an enhanced rebate of $0.40 per contract where a Member
(i) has an ADAV in Market Maker orders greater than or equal to 0.10%
OCV and (ii) has on BZX Equities an ADV greater than or equal to 0.60%
of average TCV.\9\ The Exchange proposes to create an add cross-asset
tier which is designed to incentivize members to achieve certain levels
of participation on both the Exchange's options and equities platform
(``BZX Options''). The Exchange notes that others Exchanges offer tiers
with cross-asset criteria requirements.\10\
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    \9\ ``TCV'' means total consolidated volume calculated as the
volume reported by all exchanges and trade reporting facilities to a
consolidated transaction reporting plan for the month for which the
fees apply. See Cboe BZX U.S. Equities Exchange Fee Schedule,
Definitions.
    \10\ See e.g., Cboe BZX U.S. Equities Exchange Fee Schedule,
Footnote 1 and Cboe EDGX Options Exchange Fee Schedule, Footnote 4.
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    The Exchange also proposes to adopt new MM Penny Add Tier 5, which
would provide an enhanced rebate of $0.41 per contract where a Member
has an ADAV in Market Maker orders greater than or equal to 0.30% OCV.
    The Exchange proposes to add new MM Penny Add Tier 6, which would
provide an enhanced rebate of $0.41 per contract where a Member (i) has
an ADAV in Market Maker orders greater than or equal to 0.25% OCV and
(ii) Member has an ADRV in Market Maker orders greater than or equal to
0.25% OCV.
    The Exchange proposes to add new MM Penny Add Tier 7, which would
provide an enhanced rebate of $0.42 per contract where a Member has an
ADAV in Market Maker orders greater than or equal to 0.50% OCV.
    The Exchange proposes to add new MM Penny Add Tier 8, which would
provide an enhanced rebate of $0.42 per contract where a Member (i) has
an ADAV in Market Maker orders greater than or equal to 0.35% OCV and
(ii) Member has an ADRV in Market Maker orders greater than or equal to
0.35% OCV.
    Currently, under MM Penny Add Tier 3, a Member may receive an
enhanced rebate of $0.42 where they have an ADAV in Market Maker orders
greater than or equal to 1.30% of average OCV and (ii) an ADV \11\ of
greater than or equal to 2.60% of average OCV. The Exchange first
proposes to renumber Tier 3, to Tier 9 in light of the new proposed
tiers (that offer lower rebates and have less stringent criteria). The
Exchange also proposes increase the rebate provided under Tier 9 from
$0.42 per contract to $0.46 per contract. The Exchange lastly proposes
to ease Tier 9's current criteria to encourage entry of additional
orders to the Exchange. Particularly, the Exchange proposes to reduce
the required ADAV in Market Maker orders to 0.75% of OCV (instead of
1.30%). The Exchange also proposes to eliminate the second prong of the
required criteria.
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    \11\ ``ADV'' means average daily volume calculated as the number
of contracts added or removed, combined, per day. See Exchange Fee
Schedule.
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Market Maker Non-Penny Add Tiers
    The Exchange currently offers two Market Maker Non-Penny Pilot Add
Volume Tiers (``MM Non-Penny Add Tiers'') under footnote 6, which
provide an enhanced rebate of $0.43 and $0.52 per contract for
qualifying Market Maker orders which add liquidity in Non-Penny Pilot
securities \12\ and yield fee code NM. The Exchange proposes to
increase the enhanced rebates in the MM Non-Penny Add Tiers.
Specifically, the exchange proposes to (i) increase the rebate under MM
Non-Penny Add Tier 1 from $0.43 per contract to $0.45 per contract and
(ii) increase the rebate under MM Non-Penny Add Tier 3 from $0.52 per
contract to $0.54 per contract.
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    \12\ ``Penny Pilot Securities'' are those issues quoted pursuant
to Exchange Rule 21.5, Interpretation and Policy .01.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the Section 6 of the Act,\13\ in general, and Section 6(b)(4),\14\
in particular, as it is designed to provide for the equitable
allocation of reasonable dues, fees and other charges among its Members
and other persons using its facilities.
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    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes the proposed modifications to the NBBO Setter
Tier 3 and MM Penny Add Tier 3 (renumbered to Tier 9) decreasing the
ADAV as a percentage of OCV criteria that a Member must meet, along
with eliminating the second prong of MM Penny Add Tier 3, is a
reasonable means to further incentive Members to send a higher level of
orders to the Exchange. Particularly, the Exchange believes that
decreasing the tiers' criteria, although modestly, will encourage those
Members who could not achieve the tiers previously to increase their
order flow as a means to receive the tiers' additional rebate and
enhanced rebate, respectively. The Exchange similarly believes
increasing the rebate under MM Penny Add Tier 3 (renumbered to Tier 9)
is reasonable because Members would receive a higher rebate for
satisfying the required criteria and it is a means to further
incentivize Members to send a higher level of orders to the Exchange.
Furthermore, the Exchange believes that the proposed changes to both
tiers are non-discriminatory because they apply, and are available, to
all Members.
    The Exchange believes eliminating the QIP Tiers is reasonable
because the Exchange is not required to maintain these tiers and
Members still have a number of other opportunities and a

variety of ways to receive enhanced rebates, including the existing and
new MM Penny and Non-Penny Add Tiers, as discussed throughout this
filing. The Exchange believes the proposal to eliminate these tiers is
also equitable and not unfairly discriminatory because it applies to
all Members.
    The Exchange believes the proposed changes to the criteria under MM
Penny Add Tiers 1 and 2 are reasonable because the proposed changes are
modest and are designed to encourage entry of additional options orders
to the Exchange. Increased liquidity benefits all investors by
deepening the Exchange's liquidity pool, offering additional
flexibility for all investors to enjoy cost savings, supporting the
quality of price discovery, promoting market transparency and improving
investor protection. Additionally, the Exchange believes the proposed
criteria is commensurate with the rebates under the Tiers. The Exchange
believes the proposed changes are equitable and not unfairly
discriminatory because they apply equally to all Members.
    The Exchange believes the proposal to adopt new MM Penny Add Tiers
is reasonable because it provides Members additional opportunities and
alternatives to receive enhanced rebates. The Exchange believes the
proposed changes also provide an incremental incentive for Members to
strive for the highest tier level, which provides increasingly higher
rebates. The Exchange additionally notes that volume-based incentives
and discounts have been widely adopted by exchanges and are equitable
and non-discriminatory because they are open to all members on an equal
basis and provide additional benefits or discounts that are reasonably
related to (i) the value of an exchange's market quality; (ii)
associated with higher levels of market activity, such as higher levels
of liquidity provision and/or growth patterns; and (iii) introduction
of higher volumes of orders into the price and volume discovery
processes. The proposed required criteria of the Volume Tiers are
intended to incentivize Members to send additional orders to the
Exchange in an effort to qualify for the enhanced rebate made available
by the respective tiers. The Exchange also notes that increased volume
on the Exchange provides greater trading opportunities for all market
participants. The Exchange also believes the proposed required criteria
under the proposed tiers are commensurate with the proposed
corresponding rebates. The Exchange believes the proposed tiers are
also equitable and not unfairly discriminatory because they apply to
all Members.
    The Exchange lastly believes increasing the rebates under the MM
Non-Penny Tiers are reasonable because Members would receive a higher
rebate for satisfying the required criteria. The Exchange believes
increased rebates will further incentivize Members to send a higher
level of orders to the Exchange. The Exchange believes the proposed
rebates are also equitable and not unfairly discriminatory because they
apply to all Members that satisfy the respective tiers.

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

    The Exchange believes the proposed amendments to its Fee Schedule
would not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
does not believe that the proposed rule change will impose any burden
on intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the proposed changes for
each separate type of market participant will be assessed equally to
all such market participants. While different fees are assessed to
different market participants in some circumstances, these different
market participants have different obligations and different
circumstances as discussed above. For example, Market Makers have
quoting obligations that other market participants do not have.
Further, the Exchange does not believe that the proposed changes
represent a significant departure from previous pricing offered by the
Exchange or pricing offered by the Exchange's competitors. Members may
opt to disfavor the Exchange's pricing if they believe that
alternatives offer them better value. Accordingly, the Exchange does
not believe that the proposed change will impair the ability of Members
or competing venues to maintain their competitive standing in the
financial markets.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \15\ and paragraph (f) of Rule 19b-4 \16\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2019-038 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-CboeBZX-2019-038. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public

Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
CboeBZX-2019-038 and should be submitted on or before June 7, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-10226 Filed 5-16-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 75, Number 242 (Friday, December 17, 2010)]
[Rules and Regulations]
[Pages 78881-78883]
[FR Doc No: 2010-31723]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-0596; Directorate Identifier 2010-NE-22-AD;
Amendment 39-16533; AD 2010-24-14]
RIN 2120-AA64

Airworthiness Directives; Pratt & Whitney PW4000 Series Turbofan
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
certain Pratt & Whitney PW4000 series turbofan engines. This AD
requires initial and repetitive borescope inspections (BSI) or
fluorescent penetrant inspections (FPI) for cracks in the anti-vortex
tube (AVT) shelf slots on the 10th stage disk of the high-pressure
compressor (HPC) drum rotor disk assembly. This AD results from 47
reports received since 2007 of HPC 10th stage disks found cracked in
the AVT shelf slots during shop visit inspections. We are issuing this
AD to prevent failure of the HPC 10th stage disk, uncontained engine
failure, and damage to the airplane.

DATES: This AD becomes effective January 21, 2011. The Director of the
Federal Register approved the incorporation by reference of certain
publications listed in the regulations as of January 21, 2011.

ADDRESSES: You can get the service information identified in this AD
from Pratt & Whitney, 400 Main St., East Hartford, CT 06108; telephone
(860) 565-8770; fax<PHONE_NUMBER>.
    The Docket Operations office is located at Docket Management
Facility, U.S. Department of Transportation, 1200 New Jersey Avenue,
SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-
0001.

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

SUPPLEMENTARY INFORMATION: The FAA proposed to amend 14 CFR part 39
with a proposed AD. The proposed AD applies to certain Pratt & Whitney
PW4000 series turbofan engines. We published the proposed AD in the
Federal Register on July 14, 2010 (75 FR 40757). That action proposed
to require initial and repetitive BSI or FPI for cracks in the AVT
shelf slots on the 10th stage disk of the HPC drum rotor disk assembly.

Examining the AD Docket

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

Comments

    We provided the public the opportunity to participate in the
development of this AD. We have considered the comments received.

Request for Airplane Model Changes in the Applicability

    One commenter, The Boeing Company, requests that we change the list
of airplane models in the applicability paragraph. The commenter
requests that we add the 747-400 and -400F airplane models, and remove
the 747-200 airplane model. These changes will make the list accurate.
    We agree. We changed the AD applicability to reflect these changes.

Request To Include Engine Removal Disassembly Labor Costs

    One commenter, Japan Airlines, requests that we change the costs of
compliance estimate to include engine removal and disassembly labor
costs. The commenter states that their domestic routes can go 7,000
cycles-in-service or more between engine overhauls. Since the
inspection compliance interval in the proposed AD is within every 7,200
cycles-in-service, some of their engines could be removed and
disassembled before they would normally be scheduled.
    We do not agree. The inspection compliance interval of within every
7,200 cycles-in-service captures when most of the fleet will remove the
low-pressure turbine shaft, or overhaul the HPC. Most operators will
incur no additional costs. We did not change the AD.

Request To Add Service Bulletins as Terminating Action

    Two commenters, Martinair Holland and Delta Airlines, Inc., request
that we add Pratt & Whitney Service Bulletin (SB) No. PW4ENG 72-801 to
the AD as terminating action for the repeat inspection. The commenters
state that Pratt & Whitney issued that SB, as well as SB No. PW4G-100-
72-225, to introduce a redesigned HPC 9th stage stator that will
correct the cracking problem.
    We agree. We modified the AD to include optional terminating action
for the repetitive inspections.

Reference the Latest Service Bulletin

    Since we issued the proposed AD, Pratt & Whitney has issued
Revision 1 of Pratt & Whitney SB No. PW4ENG 72-799. We updated the AD
to reference Revision 1 of this SB.

Conclusion

    We have carefully reviewed the available data, including the
comments received, and determined that air safety and the public
interest require adopting the AD with the changes described previously.
We have determined that these changes will neither increase the
economic burden on any operator nor increase the scope of the AD.

Interim Actions

    These actions are interim actions and we may take further
rulemaking actions in the future.

Costs of Compliance

    We estimate that this AD will affect 869 engines installed on
airplanes of U.S. registry. We also estimate that it will take about
one work-hour per engine to perform an inspection, and that the average
labor rate is $85 per work-hour. Required parts will cost about
$303,010 per HPC drum rotor disk assembly. About 61 HPC drum rotor disk
assemblies will need replacement due to cracks. Based on these figures,
we estimate the cost of the AD on U.S. operators to be $18,557,475.

Authority for This Rulemaking

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

Regulatory Findings

    We have determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866;
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979); and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a summary of the costs to comply with this AD and
placed it in the AD Docket. You may get a copy of this summary at the
address listed under ADDRESSES.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the Federal Aviation Administration amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2010-24-14 Pratt & Whitney: Amendment 39-16533. Docket No. FAA-2010-
0596; Directorate Identifier 2010-NE-22-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective January
21, 2011.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to the following Pratt & Whitney turbofan
engines with a ring case configuration rear high-pressure compressor
(HPC) installed, that includes a 9th stage compressor stator segment
assembly with 24 slots. These engines are installed on, but not
limited to, Boeing 747-400/-400F, 767-200/-300, and MD-11 airplanes,
and Airbus A300-600, A310-300, A330-300, and A330-200 airplanes.

PW4000-94'' Engines

    (1) PW4000-94'' series engine models PW4050, PW4052, PW4056,
PW4060, PW4060A, PW4060C, PW4062, PW4062A, PW4152, PW4156, PW4156A,
PW4158, PW4160, PW4460, PW4462, and PW4650, including all models
with a dash number suffix.

PW4000-100'' Engines

    (2) PW4000-100'' series engine models PW4168A-1D and PW4170 with
serial numbers P735001 through P735039; and
    (3) All engines converted to PW4164-1D, PW4168-1D, PW4168A-1D,
or PW4170 model engines.

Unsafe Condition

    (d) This AD results from 47 reports received since 2007 of HPC
10th stage disks found cracked in the anti-vortex tube (AVT) shelf
slots during shop visit inspections. We are issuing this AD to
prevent failure of the HPC 10th stage disk, uncontained engine
failure, and damage to the airplane.

Compliance

    (e) You are responsible for having the actions required by this
AD performed within the compliance times specified unless the
actions have already been done.

Initial Inspection of the AVT Shelf Slots

    (f) For engines listed in paragraphs (c)(1) and (c)(3) of this
AD, do the following:
    (1) Remove the low-pressure turbine (LPT) shaft and borescope-
inspect (BSI) for cracks in the AVT shelf slots on the 10th stage
disk of the HPC drum rotor disk assembly; or
    (2) Remove the HPC drum rotor disk assembly and fluorescent-
penetrant inspect (FPI) for cracks in the AVT shelf slots on the
10th stage disk of the HPC drum rotor disk assembly.
    (3) Perform the inspection:
    (i) Within 7,200 cycles-in-service (CIS) since incorporation of
any of the following Pratt & Whitney Service Bulletins: (SB) No.
PW4ENG 72-755, SB No. PW4ENG 72-756, SB No. PW4ENG 72-757, SB No.
PW4ENG 72-759, or SB No. PW4G-100-72-220; or
    (ii) Within 1,000 CIS after the effective date of this AD,
whichever occurs later.
    (4) If a crack is found, remove the HPC drum rotor disk assembly
from service.
    (g) For engines listed in paragraph (c)(2) of this AD, do the
following:
    (1) Remove the LPT shaft and BSI for cracks in the AVT shelf
slots on the 10th stage disk of the HPC drum rotor disk assembly; or
    (2) Remove the HPC drum rotor disk assembly and FPI for cracks
in the AVT shelf slots on the 10th stage disk of the HPC drum rotor
disk assembly.
    (3) Perform the inspection:
    (i) Within 7,200 cycles-since-new; or
    (ii) Within 1,000 CIS after the effective date of this AD,
whichever occurs later.
    (4) If a crack is found, remove the HPC drum rotor disk assembly
from service.

Repetitive Inspections of the AVT Shelf Slots

    (h) Thereafter, perform a BSI or FPI for cracks in the AVT shelf
slots on the 10th stage HPC disk of the HPC drum rotor disk assembly
within every 7,200 cycles-since-last-inspection.
    (i) If a crack is found, remove the HPC drum rotor disk assembly
from service.

Relevant Service Bulletins

    (j) Use paragraphs 3.A through 3.H of the Accomplishment
Instructions of Pratt & Whitney SB No. PW4ENG 72-799, Revision

1, dated October 14, 2010, to perform the BSIs for engines listed in
paragraph(c)(1) of this AD.
    (k) Use paragraphs 3.A through 3.H of the Accomplishment
Instructions of Pratt & Whitney SB No. PW4G-100-72-226, dated April
22, 2010, to perform the BSIs for engines listed in paragraphs(c)(2)
and (c)(3) of this AD.

Optional Terminating Action

    (l) As optional terminating action to the repetitive inspection
requirements of this AD, install new 9th stage compressor stator
segments, part number (P/N) 50S479-01, P/N 50S479-02, P/N 50S479-03,
and P/N 50S479-04, and perform one of the following:
    (1) At the time the new 9th stage compressor stator segments are
installed, replace the HPC drum rotor disk assembly with a new, 0
cycle, HPC drum rotor disk assembly; or
    (2) At the time the new 9th stage compressor stator segments are
installed, replace the 10th stage HPC disk with a new, 0 cycle, 10th
stage HPC disk; or
    (3) Perform a one-time BSI or FPI for cracks in the AVT shelf
slots on the 10th stage HPC disk of the HPC drum rotor disk assembly
between 4,000 and 7,200 cycles-in-service since installation of the
new 9th stage compressor stator segments.
    (i) If a crack is found, remove the HPC drum rotor disk assembly
from service.
    (ii) If no crack is found, then no further inspections are
required.
    (4) Guidance on installation of the new 9th stage compressor
stator segments can be found in Pratt & Whitney SB No. PW4ENG 72-
801, Revision 1, dated September 8, 2010, for engines listed in
paragraph(c)(1) of this AD and in Pratt & Whitney SB No. PW4G-100-
72-225 dated April 20, 2010, for engines listed in paragraphs(c)(2)
and (c)(3) of this AD.

Alternative Methods of Compliance (AMOCs)

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

Related Information

    (n) Contact James Gray, Aerospace Engineer, Engine Certification
Office, FAA, Engine and Propeller Directorate, 12 New England
Executive Park, Burlington, MA 01803; e-mail<EMAIL_ADDRESS>
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>, for more information
about this AD.

Material Incorporated by Reference

    (o) You must use Pratt & Whitney Service Bulletin (SB) No. PW4G-
100-72-226, dated April 22, 2010, and Pratt & Whitney SB No. PW4ENG
72-799, Revision 1, dated October 14, 2010, to perform the borescope
inspections required by this AD. The Director of the Federal
Register approved the incorporation by reference of these documents
in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Pratt
& Whitney, 400 Main St., East Hartford, CT 06108; telephone (860)
565-8770; fax<PHONE_NUMBER>, for a copy of this service
information. You may review copies at the FAA, New England Region,
12 New England Executive Park, Burlington, MA; or at the National
Archives and Records Administration (NARA). For information on the
availability of this material at NARA, call<PHONE_NUMBER>, or go to:
http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Burlington, Massachusetts, on November 17, 2010.
Peter A. White,
Assistant Manager, Engine and Propeller Directorate, Aircraft
Certification Service.
[FR Doc. 2010-31723 Filed 12-16-10; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 208 (Tuesday, October 27, 2020)]
[Notices]
[Pages 68084-68086]
[FR Doc No: 2020-23762]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2020-0035; OMB No. 1660-0072]

Agency Information Collection Activities: Proposed Collection;
Comment Request; Flood Mitigation Assistance (FMA); Building Resilient
Infrastructure and Communities (BRIC); Pre-Disaster Mitigation (PDM)

AGENCY: Federal Emergency Management Agency, DHS

ACTION: 60 Day Notice and request for comments.

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SUMMARY: The Federal Emergency Management Agency (FEMA), as part of its
continuing effort to reduce paperwork and respondent burden, invites
the general public to take this opportunity to comment on a revision of
a currently approved information collection. In accordance with the
Paperwork Reduction Act of 1995, this notice seeks comments concerning
FEMA's Hazard Mitigation Assistance (HMA) grant programs. While this
information collection continues to include the Flood Mitigation
Assistance (FMA) program, it includes updates to (1) introduce the
Building Resilient Infrastructure and Communities (BRIC) program; and
(2) establish the Pre-Disaster Mitigation (PDM) program as a legacy
program. Under the FEMA's HMA grant programs, States, local
communities, Tribes, and Territories (SLTTs) seek assistance to support
disaster mitigation and provide opportunities to reduce or eliminate
potential losses to SLTTs.

DATES: Written comments must be received on or before December 28,
2020.

ADDRESSES: Submit comments at www.regulations.gov under Docket ID FEMA-
2020-0035. Follow the instructions for submitting comments.
    All submissions received must include the agency name and Docket
ID, and will be posted, without change, to the Federal eRulemaking
Portal at http://www.regulations.gov, and will include any personal
information you provide. Therefore, submitting this

information makes it public. You may wish to read the Privacy and
Security Notice that is available via a link on the homepage of
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Jennie Orenstein, Grants Policy Branch
Chief, FIMA, FEMA,<PHONE_NUMBER>. You may contact the Records
Management Division for copies of the proposed collection of
information at email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: This collection of information is necessary
to implement grants for the Flood Mitigation Assistance (FMA) program,
Pre-Disaster Mitigation (PDM), and Building Resilient Infrastructure
and Communities (BRIC) program.
    The FMA program is authorized pursuant to Section 1366 of the
National Flood Insurance Act of 1968, 42 U.S.C. 4104c. The FMA program,
under 44 CFR part 79, provides funding for measures taken to reduce or
eliminate the long-term risk of flood damage to buildings, manufactured
homes, and other structures insured under the National Flood Insurance
Program (NFIP). FMA was created as part of the National Flood Insurance
Reform Act (NFIRA) of 1994, Public Law 103-325. The Biggert-Waters
Flood Insurance Reform Act of 2012 (BW-12), Public Law 112-141,
consolidated the Repetitive Flood Claims (RFC) and Severe Repetitive
Loss grant (SRL) programs into FMA, and changed the cost-share
requirements under FMA to allow more Federal funds for properties with
repetitive flood claims.
    The PDM program was authorized under Section 203 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (Stafford Act),
Public Law 93-288, 42 U.S.C. 5133, as amended by Section 102 of the
Disaster Mitigation Act of 2000, Public Law 106-390. The PDM program
provided grants for cost-effective mitigation actions prior to a
disaster event to reduce overall risks to the population and
structures, while also reducing reliance on funding from actual
disaster declarations. Section 1234 of the Disaster Recovery Reform Act
of 2018 (DRRA) amended Section 203 of the Stafford Act to authorize an
updated program. As a result, FEMA is replacing the PDM program with
the BRIC program and is establishing PDM as a legacy program. While the
last cycle of the PDM program awards were made in Fiscal Year (FY)
2019, this information collection will continue through FY 2020-2021
for grant monitoring and closeout.
    The BRIC program is designed to promote a national culture of
preparedness and public safety through encouraging investments to
protect the Nation's communities and infrastructure and through
strengthening national mitigation capabilities to foster resilience.
The BRIC program seeks to fund effective and innovative projects that
will reduce risk, increase resilience, and serve as a catalyst to
encourage the whole community to invest in and adopt policies related
to mitigation.
    The guiding principles of the BRIC program are to (1) support State
and local governments, Tribes, and territories through capability and
capacity-building to enable them to identify mitigation actions and
implement projects that reduce risks posed by natural hazards; (2)
encourage and enable innovation while allowing flexibility,
consistency, and effectiveness; (3) promote partnerships and enable
high-impact investments to reduce risk from natural hazards with a
focus on critical services and facilities, public infrastructure,
public safety, public health, and communities; (4) provide a
significant opportunity to reduce future losses and minimize impacts on
the Disaster Relief Fund; and (5) support the adoption and enforcement
of building codes, standards, and policies that will protect the
health, safety, and general welfare of the public, take into account
future conditions, and have long-lasting impacts on community risk
reduction, including for critical services and facilities and for
future disaster costs. The BRIC program will distribute funds annually
and apply a Federal/non-Federal cost share.
    In accordance with 2 CFR 200.203, FEMA requires that all parties
interested in receiving FEMA mitigation grants submit an application
package for grant assistance. Applications and subapplications for the
BRIC and FMA programs are submitted via the FEMA Grants Outcome (FEMA
GO) system. Information necessary for the ongoing monitoring and
closeout of the PDM program for FY 2019 and prior will be collected via
the e-Grants system. The FEMA GO and e-Grants systems have been
developed to meet the intent of the e-Government initiative, authorized
by Public Law 106-107. This initiative requires that all Government
agencies both streamline grant application processes and provide for
the means to electronically create, review, and submit a grant
application via the internet.
    In order to increase transparency in decision-making while building
capability and partnerships, FEMA will convene a National Review Panel
to score applications and subapplications based on qualitative
evaluation criteria. The qualitative criteria are narrative submissions
to allow applicants and subapplicants the flexibility to fully explain
the strengths of the proposed project. Qualitative evaluation criteria
have graded scales of point scoring.
    The BRIC program will solicit volunteers from SLTTs and Other
Federal Agencies (OFAs) to review applications that are routed to the
qualitative panel reviews. The volunteers will review and score
applications based on a pre-determined scoring criteria.

Collection of Information

    Title: Mitigation Grant Programs.
    Type of Information Collection: Revision of a currently approved
collection.
    OMB Number: 1660-0072.
    FEMA Forms: Building Resilient Infrastructure and Communities
(BRIC) FY 20 National Competition Panel Review Expression of Interest
Form.
    Abstract: FEMA's Flood Mitigation Assistance and Building Resilient
Infrastructure and Communities programs use an automated grant
application and management system called FEMA GO. The Pre-Disaster
Mitigation program uses an automated grant application and management
system called e-Grants. These grant programs provide funding for the
purpose of reducing or eliminating the risks to life and property from
hazards. The FEMA GO and e-Grants systems include all the application
information needed to apply for funding under these grant programs.
FEMA will use the information to solicit volunteers from SLTTs and
Other Federal Agencies (OFAs) to review applications that are routed to
the qualitative panel reviews. The volunteers will review and score
applications based on a pre-determined scoring criteria.
    Affected Public: State, Local communities, Tribes and Territories;
Individuals or Households.
    Estimated Number of Respondents: 436.
    Estimated Number of Responses: 5,364.
    Estimated Total Annual Burden Hours: 58,248.
    Estimated Total Annual Respondent Cost: $3,324,211.
    Estimated Respondents' Operation and Maintenance Costs: None.
    Estimated Respondents' Capital and Start-Up Costs: None.
    Estimated Total Annual Cost to the Federal Government: $7,586,635.

Comments

    Comments may be submitted as indicated in the ADDRESSES caption
above. Comments are solicited to (a) evaluate whether the proposed data
collection is necessary for the proper performance of the agency,
including whether the information shall have practical utility; (b)
evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) enhance the quality, utility, and
clarity of the information to be collected; and (d) minimize the burden
of the collection of information on those who are to respond, including
through the use of appropriate automated, electronic, mechanical, or
other technological collection techniques or other forms of information
technology, e.g., permitting electronic submission of responses.

Maile Arthur,
Acting Records Management Branch Chief, Office of the Chief
Administrative Officer, Mission Support, Federal Emergency Management
Agency, Department of Homeland Security.
[FR Doc. 2020-23762 Filed 10-26-20; 8:45 am]
BILLING CODE 9111-BW-P


[Federal Register Volume 83, Number 205 (Tuesday, October 23, 2018)]
[Notices]
[Page 53470]
[FR Doc No: 2018-23118]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 11845-001]

Notice of Transfer of Exemption; The Harrisburg Authority,
Capital Region Water

October 17, 2018.
    1. By letter filed October 1, 2018, The Harrisburg Authority
informed the Commission that the exemption from licensing for the
Harrisburg Water Supply Project No. 11845, originally issued September
12, 2000 \1\ has been transferred from The Harrisburg Authority to
Capital Region Water. The project pipe runs between the DeHart
Reservoir and the Harrisburg water treatment plant in Daupin County,
Pennsylvania. The transfer of an exemption does not require Commission
approval.
---------------------------------------------------------------------------

    \1\ Order Granting Exemption From Licensing (Conduit). The
Harrisburg Authority, 92 FERC ] 62,212 (2000).
---------------------------------------------------------------------------

    2. Capital Region Water is now the exemptee of the Harrisburg Water
Supply Project No. 11845. All correspondence should be forwarded to:
Mr. Michael McFadden, Director of Water Operations, Capital Region
Water, 100 Pine Drive, Harrisburg, PA 17103, Phone:<PHONE_NUMBER>,
Email: [email protected] and Ms. Tanya Dierolf,
Manager of Sustainability & Strategic Projects, Capital Water Region,
212 Locust Street, Suite 500, Harrisburg, PA 17101, Phone: 888-510-
0606, Email: [email protected].

    Dated: October 17, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-23118 Filed 10-22-18; 8:45 am]
 BILLING CODE 6717-01-P