                                  Memorandum

Subject:	Economic Impact Analysis for Risk and Technology Review: Off-site Waste and 			Recovery Operations Source Category

Date:		February 10, 2015

From:		Amanda Curry Brown
		Economist
		Air Economics Group (C504-04)

To:		Paula Hirtz
		Environmental Engineer
		RCG (E143-01)

This document addresses the economic impacts of the Risk and Technology Review for the Off-site Waste and Recovery Operations (OSWRO) source category. The total capital and total annualized costs for the amendments are estimated to be $4.1 million and $1.1 million per year, respectively. Detailed information on these cost estimates can be found in the docket.

The OSWRO source category includes facilities that operate waste management and recovery processes for materials received from off-site. These facilities are not categorized as a single industry and, as a result, cannot be classified under a single NAICS code category. During the development of these amendments, EPA identified 49 facilities with emissions data. These 49 facilities represent 29 firms in 21 industries. These industries are shown in Table 1.

Table 1. Industries Represented in OSWRO Source Category
                                     NAICS
                                  Description
211111
Crude Petroleum and Natural Gas Extraction
221310
Water Supply and Irrigation Systems
237310
Highway, Street, and Bridge Construction
324110
Petroleum Refineries
325180
Other Basic Inorganic Chemical Manufacturing
325194
Cyclic Crude, Intermediate, and Gum and Wood
Chemical Manufacturing
325199
All Other Basic Organic Chemical Manufacturing
325211
Plastics Material and Resin Manufacturing
327310
Cement Manufacturing
331313
Alumina Refining and Primary Aluminum Production
325320
Pesticide and Other Agricultural Chemical Manufacturing
333316
Photographic and Photocopying Equipment Manufacturing
336411
Aircraft Manufacturing
424690
Other Chemical and Allied Products Merchant Wholesalers
Table 2. Industries Represented in OSWRO Source Category, continued
561110
Office Administrative Services
562111
Solid Waste Collection
562211
Hazardous Waste Treatment and Disposal
562213
Solid Waste Combustion and Incinerators
562219
Other Nonhazardous Waste Treatment and Disposal
562920
Materials Recovery Facilities
928110
National Security[a]
      [a] One facility is operated by the U.S. Department of Defense.

Small Business Impacts Analysis

The Regulatory Flexibility Act, as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA), generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small governmental jurisdictions, and small not-for-profit enterprises. The Small Business Administration (SBA) established size standards classified by NAICS category to use in identifying small businesses. The SBA size standards apply to an establishment's "ultimate parent company" and were based on either total receipts or total employment for the industries included in this analysis.

For this analysis, we identified the ultimate parent company (firm) for each facility and obtained firm-level employment and revenues using various sources, including the American Business Directory, Hoovers, corporate websites, and publically available financial reports. Based on this information, we identified four firms that are small businesses based on the SBA size-standards. Table 3 shows the average revenue and employment for small and large firms.

Table 3. Average Revenue and Employment by Firm Size

                                   All Firms
                                  Small Firms
                                  Large Firms
Number of Firms
                                                                             29
                                                                              4
                                                                             25
Average Revenue
                                                                    $25 billion
                                                                   $110 million
                                                                    $29 billion
Average Employment
                                                                         25,000
                                                                            390
                                                                         29,000
*All figures rounded to 2 significant digits.

For this analysis, we assume that each firm will incur an annual cost per unit of approximately $23,000 in order to meet the requirements at each of the facilities it operates. Table 4 presents descriptive statistics for the number of facilities and total annual cost per firm.

Table 4. Number of Facilities and Annual Cost by Firm Size

                                   All Firms
                                  Small Firms
                                  Large Firms
                             Number of Facilities
                                    Average
                                                                            1.7
                                                                            1.3
                                                                            1.8

                                      Min
                                                                              1
                                                                              1
                                                                              1

                                      Max
                                                                             10
                                                                              2
                                                                             10

                                    Median
                                                                              1
                                                                              1
                                                                              1
                            Total Annual Firm Cost
                                    Average
                                                                        $40,000
                                                                        $29,000
                                                                        $41,000

                                      Min
                                                                        $23,000
                                                                        $23,000
                                                                        $23,000

                                      Max
                                                                       $230,000
                                                                        $46,000
                                                                       $230,000

                                    Median
                                                                        $23,000
                                                                        $23,000
                                                                        $23,000

The cost-to-revenue ratio, or the "sales test," is the impact methodology EPA employs in analyzing small entity impacts. The sales test is often used because revenues or sales data are commonly available for entities impacted by EPA regulations. Revenues are typically more reliably reported than profit data, which may be impacted by accounting or tax considerations. The use of a "sales test" for estimating small business impacts is consistent with EPA guidance on compliance with SBREFA and is consistent with guidance published by SBA's Office of Advocacy. As shown in Table 5, the cost-to-sales ratio for all small firms in this analysis is significantly less than 1 percent.

Table 5. Summary of Small Entity Impacts
                                     Firm
                                     NAICS
                                    Revenue
                                Total Firm Cost
                              Cost-to-Sales Ratio
EQ Holdings
                                    562219
                                                                    $26,500,000
                                                                        $46,000
                                                                          0.17%
FutureFuel Corporation
                                    325199
                                                                   $351,830,000
                                                                        $23,000
                                                                          0.01%
Ross Incineration Services, Inc.
                                    562213
                                                                    $31,100,000
                                                                        $23,000
                                                                          0.07%
WRR Environmental Services
                                    562920
                                                                    $13,800,000
                                                                        $23,000
                                                                          0.17%

Industry Impact Analysis

Both the magnitude of control costs needed to comply with a regulation and the distribution of these costs among affected facilities can have a role in determining how the market will change in response to that regulation.  Total annualized costs for the amendments are estimated to be about $1.1 million. The average annual cost per facility is estimated to be about $23,000.

Without detailed industry data, it is not possible to conduct a complete quantitative analysis of economic impacts. However, prior analysis suggests the impacts of these amendments will be minimal. The Economic Impact Analysis for the Final Off-Site Waste and Recovery Operations NESHAP found that demand for off-site waste services was highly inelastic. This means that suppliers are predominantly able to pass along cost increases to consumers through higher prices with little, if any, decrease in the quantity of service demanded. While we do not have specific information on prices charged or the quantity of service provided, company revenues are a function of both these factors. The cost-to-sales ratio is less than .20 percent for all of the 29 firms included in this analysis, suggesting any increase in price would be minimal.

Conclusions

Our screening analysis shows that four of the 29 firms that own facilities in the OSWRO source category can be classified as small firms using the SBA size standards for their respective industries. Based on the sales test screening methodology, all affected facilities will experience minimal impact, or a cost-to-sales ratio of significantly less than 1 percent. We conclude that these amendments will not have a significant economic impact on a substantial number of small entities.

Although there is not sufficient data to complete a full quantitative analysis of economic impacts, we do not anticipate the amendments to result in firm closures or substantial profit loss because these facilities are likely to be able to pass cost increases through to their customers. While we do not have data on current prices charged or quantities provided, the relatively low cost compared to firm revenues suggests any price increase would be minimal.


[Federal Register Volume 88, Number 48 (Monday, March 13, 2023)]
[Rules and Regulations]
[Page 15274]
[FR Doc No: 2023-05110]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 100

[Docket No. USCG-2023-0136]

Special Local Regulations; Seventh Coast Guard District, Blessing
of the Fleet--St. Augustine

AGENCY: Coast Guard, DHS.

ACTION: Notification of enforcement of regulation.

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

SUMMARY: The Coast Guard will enforce special local regulations for the
Blessing of the Fleet--St. Augustine on April 2, 2023, to provide for
the safety of life on navigable waterways during this event. Our
regulation for marine events within the Seventh Coast Guard District
identifies the regulated area for this event in St. Augustine, FL.
During the enforcement periods, the operator of any vessel in the
regulated area must comply with directions from the Patrol Commander or
any Official Patrol displaying a Coast Guard ensign.

DATES: The regulations in 33 CFR 100.701, Table 1 to Sec.  100.701,
paragraph (c), Item 8, will be enforced from noon until 3 p.m., on
April 2, 2023.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
notification of enforcement, call or email MST1 Anthony Deangelo,
Sector Jacksonville, Waterways Management Division, U.S. Coast Guard;
telephone<PHONE_NUMBER>, email [email protected].

SUPPLEMENTARY INFORMATION: The Coast Guard will enforce special local
regulations in 33 CFR 100.701, Table 1 to Sec.  100.701, paragraph (c),
Item 8, for the Blessing of the Fleet--St. Augustine regulated from
noon until 3 p.m., on April 2, 2023. This action is being taken to
provide for the safety of life on navigable waterways during the event.
Our regulation for recurring marine events within the Seventh Coast
Guard District, Sec.  100.701, Table 1 to Sec.  100.701, paragraph (c),
Item 8, specifies the location of the regulated area for the Blessing
of the Fleet--St. Augustine which encompasses portions of the Matanzas
River at the St. Augustine Municipal Marina. During the enforcement
periods, as reflected in in Sec.  100.701, if you are the operator of a
vessel in the regulated area you must comply with directions from the
Patrol Commander or any Official Patrol displaying a Coast Guard
ensign.
    In addition to this notification of enforcement in the Federal
Register, the Coast Guard plans to provide notification of this
enforcement period via the Local Notice to Mariners, marine information
broadcasts, local radio stations and area newspapers.

    Dated: March 8, 2023.
J.D. Espino-Young,
Captain, U.S. Coast Guard, Captain of the Port Jacksonville.
[FR Doc. 2023-05110 Filed 3-10-23; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 78, Number 104 (Thursday, May 30, 2013)]
[Notices]
[Pages 32503-32510]
[FR Doc No: 2013-12846]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69636; File No. SR-NYSEArca-2013-52]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Proposing To List and Trade Shares of the First
Trust Morningstar Futures Strategy Fund Under NYSE Arca Equities Rule
8.600

May 24, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that, on May 15, 2013, NYSE Arca, Inc. (``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission
(``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade shares of the following
under NYSE Arca Equities Rule 8.600 (``Managed Fund Shares''): First
Trust Morningstar Futures Strategy Fund. The text of the proposed rule
change is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange, 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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to list and trade the shares (``Shares'') of
the following under NYSE Arca Equities Rule 8.600, which governs the
listing and trading of Managed Fund Shares on the Exchange: \3\ First
Trust Morningstar Futures Strategy Fund (the ``Fund'').\4\ The Shares
will be offered by First Trust Exchange-Traded Fund V (the ``Trust''),
a statutory trust organized under the laws of the State of
Massachusetts and registered with the Commission as an open-end
management investment company.\5\ The investment adviser to the Fund is
First Trust Advisors L.P. (the ``Adviser''). First Trust Portfolios
L.P. (the ``Distributor'') will be the principal underwriter and
distributor of the Fund Shares. The Bank of New York Mellon Corporation
(the ``Administrator,'' ``Transfer Agent'' or ``Custodian'') will serve
as administrator, custodian and transfer agent for the Fund.
---------------------------------------------------------------------------

    \3\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (the ``1940 Act'') organized
as an open-end investment company or similar entity that invests in
a portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
    \4\ The Commission approved NYSE Arca Equities Rule 8.600 and
the listing and trading of certain funds of the PowerShares Actively
Managed Exchange-Traded Fund Trust on the Exchange pursuant to Rule
8.600 in Securities Exchange Act Release No. 57619 (April 4, 2008),
73 FR 19544 (April 10, 2008) (SR-NYSEArca-2008-25). The Commission
also previously approved listing and trading on the Exchange of a
number of actively managed funds under Rule 8.600. See, e.g.,
Securities Exchange Act Release Nos. 62502 (July 15, 2010), 75 FR
42471 (July 21, 2010) (SR-NYSEArca-2010-57) (order approving listing
and trading of AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF);
63598 (December 22, 2010), 75 FR 82106 (December 29, 2010) (SR-
NYSEArca-2010-98) (order approving listing and trading of WisdomTree
Managed Futures Strategy Fund); and 66343 (February 7, 2012), 77 FR
7647 (February 13, 2012) (SR-NYSEArca-2011-85) (order approving
listing and trading of five SPDR SSgA ETFs).
    \5\ The Trust is registered under the 1940 Act. On May 18, 2012,
the Trust filed with the Commission an initial registration
statement on Form N-1A under the Securities Act of 1933 (15 U.S.C.
77a) (the ``1933 Act'') and under the 1940 Act relating to the Fund
(File Nos. 333-181507 and 811-22709) (``Registration Statement'').
The description of the operation of the Trust and the Fund herein is
based, in part, on the 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.
30029 (April 10, 2012) (File No. 812-13795) (the ``Exemptive
Order'').
---------------------------------------------------------------------------

    Commentary .06 to Rule 8.600 provides that, if the investment
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio. In addition, Commentary
.06 further requires that personnel who make decisions on the open-end
fund's portfolio composition must be subject to procedures designed to
prevent the use and dissemination of material nonpublic information
regarding the open-end fund's portfolio.\6\ Commentary .06 to Rule
8.600 is similar to Commentary .03(a)(i) and (iii) to NYSE Arca
Equities Rule 5.2(j)(3); however, Commentary .06 in connection with the
establishment of a ``fire wall'' between the investment adviser and the
broker-dealer reflects the applicable open-end fund's portfolio, not an
underlying benchmark index, as is the case with index-based funds. The
Adviser is not a broker-dealer but is affiliated with a broker-dealer
and has implemented a fire wall with respect to its broker-dealer
affiliate

regarding access to information concerning the composition and/or
changes to the portfolio. In the event (a) the Adviser becomes newly
affiliated with a broker-dealer, or (b) any new adviser or sub-adviser
is a registered broker-dealer or becomes affiliated with a broker-
dealer, it will implement a fire wall with respect to its relevant
personnel or its broker-dealer affiliate 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.
---------------------------------------------------------------------------

    \6\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and its 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 Commodity Futures Trading Commission (``CFTC'') has recently
adopted substantial amendments to CFTC Rule 4.5 relating to the
permissible exemptions and conditions for reliance on exemptions from
registration as a commodity pool operator. As a result of the
instruments that will be held by the Fund, the Adviser has registered
as a Commodity Pool Operator (``CPO'') and is also a member of the
National Futures Association (``NFA''). The Fund and the Subsidiary (as
defined herein) will be subject to regulation by the CFTC and NFA and
additional disclosure, reporting and recordkeeping rules imposed upon
commodity pools.
    According to the Registration Statement, the Fund will be an
actively managed exchange-traded fund that will seek to provide
investors with positive returns.
Fund Investments
    According to the Registration Statement, the Fund will seek to
provide investors with positive returns. The Fund will seek to achieve
positive total returns that are not directly correlated to broad market
equity or fixed income returns. The Fund will seek to track the
performance of the Morningstar\(R)\ Diversified Futures Index\(SM)\
(the ``Benchmark''), which is developed, maintained and sponsored by
Morningstar, Inc. (``Morningstar'').\7\ The Fund is not sponsored,
endorsed, sold or promoted by Morningstar. Morningstar's only
relationship to the Fund is the licensing of certain service marks and
service names of Morningstar and of the Benchmark, which is determined,
composed and calculated by Morningstar without regard to the Adviser or
the Fund. Morningstar has no obligation to take the needs of the
Adviser or the Fund into consideration in determining, composing or
calculating the Benchmark. The Benchmark seeks to reflect trends (in
either direction) in the commodity futures, currencies futures and
financial futures markets. The Benchmark is a fully collateralized
futures index that offers diversified exposure to global markets
through highly-liquid, exchange listed futures contracts in
commodities, currencies and equity indexes. The Fund will generally
seek to hold similar instruments to those included in the Benchmark. In
addition, the Fund will generally only seek exposure to commodities
included in the Benchmark. However, the Fund is not obligated to invest
in the same instruments included in the Benchmark. There can be no
assurance that the Fund's performance will track the Benchmark at all
times.
---------------------------------------------------------------------------

    \7\ Morningstar is not a broker-dealer but is affiliated with a
broker-dealer and, with respect to such broker-dealer affiliate, has
implemented a fire wall and procedures designed to prevent the
illicit use and dissemination of material, non-public information
regarding the Benchmark.
---------------------------------------------------------------------------

    Under normal market conditions,\8\ the Fund, through FT Cayman
Subsidiary, a wholly-owned subsidiary of the Fund organized under the
laws of the Cayman Islands (the ``Subsidiary''), will invest in a
diversified portfolio of exchange-listed commodity futures, currency
futures and equity index futures (collectively, ``Futures
Instruments'') with an aggregate notional value substantially equal to
the Fund's net assets.
---------------------------------------------------------------------------

    \8\ The term ``under normal market conditions'' includes, but is
not limited to, the absence of extreme volatility or trading halts
in the fixed income markets, futures 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.
---------------------------------------------------------------------------

    The Fund will not invest directly in Futures Instruments. The Fund
expects to exclusively gain exposure to these investments by investing
in the Subsidiary. The Subsidiary will be advised by the Adviser.\9\
The Fund's investment in the Subsidiary is intended to provide the Fund
with exposure to commodity markets within the limits of current federal
income tax laws applicable to investment companies such as the Fund,
which limit the ability of investment companies to invest directly in
the Futures Instruments. The Subsidiary will have the same investment
objective as the Fund, but unlike the Fund, it may invest without
limitation in Futures Instruments. Except as otherwise noted,
references to the Fund's investments may also be deemed to include the
Fund's indirect investments through the Subsidiary. The Fund will
invest up to 25% of its total assets in the Subsidiary. Each of the
Subsidiary's investments will generally be positioned long, short or
flat based on its price relative to its average price over a recent
period, with the ability to change positions as frequently as daily if
the Benchmark is so adjusted. The Subsidiary's investments will provide
the Fund with exposure to domestic and international markets.
---------------------------------------------------------------------------

    \9\ The Subsidiary is not registered under the 1940 Act and is
not directly subject to its investor protections, except as noted in
the Registration Statement. However, the Subsidiary is wholly-owned
and controlled by the Fund and is advised by the Adviser. Therefore,
because of the Fund's ownership and control of the Subsidiary, the
Subsidiary would not take action contrary to the interests of the
Fund or its shareholders. The Fund's Board of Trustees (``Board'')
has oversight responsibility for the investment activities of the
Fund, including its expected investment in the Subsidiary, and the
Fund's role as the sole shareholder of the Subsidiary. The Adviser
receives no additional compensation for managing the assets of the
Subsidiary. The Subsidiary will also enter into separate contracts
for the provision of custody, transfer agency, and accounting agent
services with the same or with affiliates of the same service
providers that provide those services to the Fund.
---------------------------------------------------------------------------

    According to the Registration Statement, the Fund will invest a
substantial portion of its assets in fixed income securities that
include U.S. government and agency securities, money market
instruments,\10\ overnight and fixed-term repurchase agreements, cash
and other cash equivalents. The Fund will use the fixed-income
securities as investments and to meet asset coverage tests resulting
from the Subsidiary's derivative exposure on a day-to-day basis. The
Fund may also invest directly in exchange-traded funds (``ETFs'') \11\
and other investment companies that provide exposure to commodities,
equity securities and fixed income securities, to the extent permitted
under the 1940 Act. Under the 1940 Act, the Fund's investment in
investment companies is limited to, subject to certain exceptions: (i)
3% of the total outstanding voting stock of any one investment company,
(ii) 5% of the Fund's total assets with respect to any one investment
company and (iii) 10% of the Fund's total assets of investment
companies in the aggregate. As a whole, the Fund's investments are
meant to track the investment returns of the Benchmark within the
limitations of the federal tax requirements applicable to regulated
investment companies.
---------------------------------------------------------------------------

    \10\ The Fund may invest in shares of money market funds to the
extent permitted by the 1940 Act.
    \11\ For purposes of this proposed rule change, ETFs include
securities such as those listed and traded under NYSE Arca Equities
Rule 5.2(j)(3) (``Investment Company Units''), 8.100 (``Portfolio
Depositary Receipts'') and 8.600 (``Managed Fund Shares'').

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

    The Benchmark and the Subsidiary's holdings in futures contracts
will consist of futures contracts providing long, short and flat
exposure, which include, but are not limited to, commodities, equity
indexes and currencies (Euro, Japanese Yen, British Pound, Canadian
Dollar, Australian Dollar and Swiss Franc). The Subsidiary's exposure
will generally be weighted 50% in commodity futures, 25% in equity
futures and 25% in currency futures. The base weights typically will be
rebalanced quarterly to maintain the 50%/25%/25% allocation.
    The Subsidiary's commodity- and currency-linked investments
generally will be limited to investments in listed futures contracts
that provide exposure to commodity and non-U.S. currency returns. The
Subsidiary will also invest in exchange-listed equity index futures.
The Fund and the Subsidiary also may enter into repurchase agreements
with counterparties that are deemed to present acceptable credit risks.
A repurchase agreement is a transaction in which the Fund and the
Subsidiary purchase securities or other obligations from a bank or
securities dealer and simultaneously commit to resell them to a
counterparty at an agreed-upon date or upon demand and at a price
reflecting a market rate of interest unrelated to the coupon rate or
maturity of the purchased obligations.
    The following table describes each of the commodities, currencies
and equity indexes underlying the futures contracts included in the
Benchmark as of April 30, 2013. This table is subject to change and the
Subsidiary will not in all cases invest in the futures contracts
included in the Benchmark. The table also provides each instrument's
trading hours (Eastern time (``E.T.''), exchange and ticker symbol.

----------------------------------------------------------------------------------------------------------------
                                                                                Contract ticker
                                       Exchange code        Exchange name      Trading hours       (generic)
----------------------------------------------------------------------------------------------------------------
Commodity:
    Wheat/No. 2 Hard Winter.......  KCB                 Kansas City Board of      17:00-14:00  KW.
                                                         Trade.
    Soybean Meal/48% Protein......  CBT                 Chicago Board of          17:00-14:00  SM.
                                                         Trade.
    Cotton/1-1/16``...............  NYB                 ICE Futures U.S.....      20:00-13:30  CT.
    Soybean Oil/Crude.............  CBT                 Chicago Board of          17:00-14:00  BO.
                                                         Trade.
    Wheat/No. 2 Soft Red..........  CBT                 Chicago Board of          17:00-14:00  W.
                                                         Trade.
    Coffee `C'/Colombian..........  NYB                 ICE Futures U.S.....      02:30-13:00  KC.
    Hogs, Lean/Average Iowa/S Minn  CME                 Chicago Mercantile        17:00-16:00  LH.
                                                         Exchange.
    Copper High Grade/Scrap No. 2   CMX                 COMEX...............      17:00-16:15  HG.
     Wir.
    Cattle, Live/Choice Average...  CME                 Chicago Mercantile        17:00-16:00  LC.
                                                         Exchange.
    Sugar 11/World Raw...  NYB                 ICE Futures U.S.....      01:30-13:00  SB.
    Silver........................  CMX                 COMEX...............      17:00-16:15  SI.
    Gasoline, Blendstock..........  NYM                 New York Mercantile       17:00-16:15  XB.
                                                         Exchange.
    Soybeans/No. 2 Yellow.........  CBT                 Chicago Board of          17:00-14:00  S.
                                                         Trade.
    Corn/No. 2 Yellow.............  CBT                 Chicago Board of          17:00-14:00  C.
                                                         Trade.
    Heating Oil 2/Fuel     NYM                 New York Mercantile       17:00-16:15  HO.
     Oil.                                                Exchange.
    Natural Gas, Henry Hub........  NYM                 New York Mercantile       17:00-16:15  NG.
                                                         Exchange.
    Gas-Oil-Petroleum.............  ICE                 ICE Futures U.K.....      19:00-17:00  QS.
    Gold..........................  CMX                 COMEX...............      17:00-16:15  GC.
    Crude Oil, Brent/Global Spot..  ICE                 ICE Futures U.K.....      19:00-17:00  CO.
    Crude Oil, WTI/Global Spot....  NYM                 New York Mercantile       17:00-16:15  CL.
                                                         Exchange.
Currency:
    Swiss Franc/U.S. Dollar.......  CME                 Chicago Mercantile        17:00-16:00  MSS.
                                                         Exchange.
    Australian Dollar/U.S. Dollar.  CME                 Chicago Mercantile        17:00-16:00  CRD.
                                                         Exchange.
    Canadian Dollar/U.S. Dollar...  CME                 Chicago Mercantile        17:00-16:00  MCD.
                                                         Exchange.
    Japanese Yen/U.S. Dollar......  CME                 Chicago Mercantile        17:00-16:00  JE.
                                                         Exchange.
    British Pound/U.S. Dollar.....  CME                 Chicago Mercantile        17:00-16:00  CRP.
                                                         Exchange.
    Euro FX.......................  CME                 Chicago Mercantile        17:00-16:00  EE.
                                                         Exchange.
Equity Index:
    Australia 200 S...............  ASX                 Australian Stock          02:30-05:00  KF.
                                                         Exchange.
    MIB SP........................  MIL                 Borsa Italiana......      02:00-10:40  SW.
    S&P/TSX 60....................  MSE                 Montreal Exchange...      05:00-15:15  MPT.
    IBEX 35 Index.................  MFM                 Meff Renta Variable       02:00-13:00  ID.
                                                         (MEFF-Madrid).
    FTSE 100......................  LIF                 NYSE LIFFE..........      19:00-01:50  Z.
    CAC-40 Index..................  EOP                 NYSE LIFFE Paris....      01:00-15:00  CF.
    DAX...........................  EUX                 Eurex...............      00:50-15:00  GX.
    Nikkei 225....................  OSE                 Osaka Securities          02:30-13:00  NO.
                                                         Exchange.
    S&P 500.......................  CME                 Chicago Mercantile        17:00-15:15  ES.
                                                         Exchange.
----------------------------------------------------------------------------------------------------------------

    According to the Registration Statement, the Fund, through the
Subsidiary, will attempt to capture the economic benefit derived from
rising and declining trends based on the ``moving average'' price
changes of commodity futures, currency futures and equity index
futures. In an attempt to capture these trends, the Fund's investments,
through the Subsidiary, will generally be positioned as either
``long,'' ``short'' or ``flat.'' To be ``long'' means to hold or be
exposed to a security or instrument with the expectation that its value
will increase over time. To be ``short'' means to sell or be exposed to
a security or instrument with the expectation that it will fall in
value. To be ``flat'' means to move a position to cash if a short
signal is triggered in a security or instrument. The Fund, through the
Subsidiary, will benefit if it has a long position in a security or
instrument that increases in value or a short position in a security or
instrument that decreases in value. Conversely, the Fund, through the
Subsidiary, will be adversely impacted if it holds a long position in a
security or instrument that declines in value and a short position in a
security or instrument that increases in value. Although the Fund will
seek returns

that track the returns of the Benchmark, the Fund, through the
Subsidiary, may have a higher or lower exposure to any sector or
component within the Benchmark at any time.
    The Subsidiary's shares will be offered only to the Fund and the
Fund will not sell shares of the Subsidiary to other investors. The
Fund will not invest in any non-U.S. equity securities (other than
shares of the Subsidiary), and the Subsidiary will not invest in any
non-U.S. equity securities.
    The Fund's investment in the Subsidiary will be designed to help
the Fund achieve exposure to commodity returns in a manner consistent
with the federal tax requirements applicable to the Fund and other
regulated investment companies.
Other Investments
    According to the Registration Statement, the Fund may from time to
time purchase securities on a ``when-issued'' or other delayed-delivery
basis. The price of securities purchased in such transactions is fixed
at the time the commitment to purchase is made, but delivery and
payment for the securities take place at a later date.
    The Fund may invest in certificates of deposit issued against funds
deposited in a bank or savings and loan association. In addition, the
Fund may invest in bankers' acceptances, which are short-term credit
instruments used to finance commercial transactions.
    The Fund may invest in bank time deposits, which are monies kept on
deposit with banks or savings and loan associations for a stated period
of time at a fixed rate of interest. In addition, the Fund may invest
in commercial paper, which are short-term unsecured promissory notes,
including variable rate master demand notes issued by corporations to
finance their current operations. Master demand notes are direct
lending arrangements between the Fund and a corporation. The Fund may
invest in commercial paper only if it has received the highest rating
from at least one nationally recognized statistical rating organization
or, if unrated, judged by First Trust to be of comparable quality.
    The Fund may also invest a portion of its assets in exchange-traded
pooled investment vehicles (``Underlying ETPs'') other than registered
investment companies that invest principally in commodities.\12\
---------------------------------------------------------------------------

    \12\ The term ``Underlying ETPs'' includes Trust Issued Receipts
(as described in NYSE Arca Equities Rule 8.200); and Commodity-Based
Trust Shares (as described in NYSE Arca Equities Rule 8.201);
Commodity Index Trust Shares (as described in NYSE Arca Equities
Rule 8.203); and Trust Units (as described in NYSE Arca Equities
Rule 8.500). The Underlying ETPs all will be listed and traded in
the U.S. on registered exchanges.
---------------------------------------------------------------------------

    The Fund or the Subsidiary will not invest in options on commodity
futures, structured notes, equity-linked derivatives, forwards or swaps
contracts.
Investment Restrictions
    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., 2X and 3X) of the
Fund's Benchmark.
    According to the Registration Statement, the Fund may not invest
more than 25% of the value of its total assets in securities of issuers
in any one industry or group of industries.\13\ This restriction does
not apply to obligations issued or guaranteed by the U.S. Government,
its agencies or instrumentalities.
---------------------------------------------------------------------------

    \13\ See Form N-1A, Item 9. The Commission has taken the
position that a fund is concentrated if it invests more than 25% of
the value of its total assets in any one industry. See, e.g.,
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR
54241 (November 21, 1975).
---------------------------------------------------------------------------

    The Fund will not purchase securities of open-end or closed-end
investment companies except in compliance with the 1940 Act.
    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 master demand notes. 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.\14\
---------------------------------------------------------------------------

    \14\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); Investment Company Act
Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the 1933 Act).
---------------------------------------------------------------------------

    The Fund intends to qualify for and to elect to be treated as a
separate regulated investment company (a ``RIC'') under Subchapter M of
the Internal Revenue Code.\15\
---------------------------------------------------------------------------

    \15\ 26 U.S.C. 851.
---------------------------------------------------------------------------

    The Shares will conform to the initial 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 \16\ under the Act, as provided by NYSE Arca Equities Rule 5.3. A
minimum of 100,000 Shares of 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 as defined in NYSE Arca Equities Rule 8.600(c)(2)
will be made available at the same time to all market participants.
---------------------------------------------------------------------------

    \16\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to enhance leverage.
Net Asset Value
    According to the Registration Statement, the Fund's NAV will be
determined as of the close of trading (normally 4:00 p.m., E.T.) on
each day the New York Stock Exchange is open for business. NAV will be
calculated for the Fund by taking the market price of the Fund's total
assets, including interest or dividends accrued but not yet collected,
less all liabilities, and dividing such amount by the total number of
Shares outstanding. The result, rounded to the nearest cent, will be
the NAV per Share. All valuations will be subject to review by the
Fund's Board or its delegate.
    The Fund's and the Subsidiary's investments will be valued at
market value or, in the absence of market value with respect to any
portfolio securities, at fair value in accordance with valuation
procedures adopted by the Trust's Board and in accordance with the 1940
Act. Portfolio securities traded on more than one securities exchange
will be valued at the last sale price or official closing price, as
applicable, on the business day as of which such value is being
determined at the close of the exchange representing the principal
market for such securities. Portfolio

securities traded in the over-the-counter market, will be valued at the
closing bid prices. Short-term investments that mature in less than 60
days when purchased will be valued at amortized cost. Exchange-traded
futures contracts will be valued at the closing price in the market
where such contracts are principally traded.
    Certain securities may not be able to be priced by pre-established
pricing methods. Such securities may be valued by the Board or its
delegate at fair value. The use of fair value pricing by the Fund will
be governed by valuation procedures adopted by the Board and in
accordance with the provisions of the 1940 Act.
Creation and Redemption of Shares
    Creation and redemption of Shares will occur in large specified
blocks of Shares, referred to as ``Creation Units.'' A Creation Unit of
the Fund currently will be comprised of 50,000 Shares of the Fund. The
number of Shares comprising a Creation Unit may change over time.
According to the Registration Statement, to purchase or redeem Creation
Units directly from the Fund, an investor must be an Authorized
Participant, or an investor must purchase the Shares through a
financial institution that is an Authorized Participant. An
``Authorized Participant'' is a participant in the Continuous Net
Settlement System of the National Securities Clearing Corporation
(``NSCC'') or the Depository Trust Company that has executed a
participant agreement with the Distributor that has been accepted by
the Trust's Custodian. Authorized Participants may purchase Creation
Units of a Fund and sell individual Shares on the NYSE Arca. Similarly,
Shares can only be redeemed in Creation Units. The process at which
creations and redemptions occur will be based on the next calculation
of the NAV after an order in proper form is received by the Distributor
on any day that the Fund is open for business. Generally, a Creation
Unit will be purchased or redeemed from the Fund for a designated
portfolio of securities along with cash payment (``Deposit
Securities,'' in the case of purchases, and ``Redemption Securities,''
in the case of redemption). Generally, the Deposit Securities and the
Redemption Securities will correspond pro rata to the portfolio of
securities of the Fund. Purchases and redemptions of Creation Units may
be made in whole or in part on a cash basis, rather than in-kind, under
circumstances set forth in the Registration Statement.
    Additional information regarding the Trust and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings, disclosure policies,
distributions, and taxes is included in the Registration Statement. All
terms relating to the Fund that are referred to, but not defined in,
this proposed rule change are defined in the Registration Statement.
Availability of Information
    The Fund's Web site (www.ftportfolios.com) will include a form of
the prospectus for the Fund that may be downloaded. The Fund's Web site
will include additional quantitative information updated on a daily
basis, including, for the Fund, (1) daily trading volume, the prior
business day's reported closing price, NAV and mid-point of the bid/ask
spread at the time of calculation of such NAV (the ``Bid/Ask
Price''),\17\ and a calculation of the premium and discount of the Bid/
Ask Price against the NAV, and (2) data in chart format displaying the
frequency distribution of discounts and premiums of the daily Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. On each business day, before commencement
of trading in Shares in the Core Trading Session (normally 9:30 a.m. to
4:00 p.m., E.T.) 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.\18\
---------------------------------------------------------------------------

    \17\ The Bid/Ask Price of the Fund will be determined using the
mid-point of the highest bid and the lowest offer on the Exchange as
of the time of calculation of the Fund's NAV. The records relating
to Bid/Ask Prices will be retained by the Fund and its service
providers.
    \18\ Under accounting procedures followed by the Fund, trades
made on the prior business day (``T'') will be booked and reflected
in NAV on the current business day (``T+1''). Accordingly, the Fund
will be able to disclose at the beginning of the business day the
portfolio that will form the basis for the NAV calculation at the
end of the business day.
---------------------------------------------------------------------------

    On a daily basis, the Fund will disclose for each portfolio
security and other financial instrument of the Fund and of the holdings
of the Subsidiary the following information on the Fund's Web site:
ticker symbol (if applicable), name of security, futures contract, and/
or financial instrument, number of shares, if applicable, and dollar
value of each security, futures contract, and/or financial instrument
held, and percentage weighting of each security, futures contract, and/
or financial instrument held. The Web site information will be publicly
available at no charge.
    In addition, for in-kind creations, a basket composition file,
which includes the security names to deliver in exchange for Shares,
together with estimates and actual cash components, will be publicly
disseminated daily prior to the opening of the Exchange via the NSCC.
The basket will represent one Creation Unit of the Fund.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and the Trust's
Form N-CSR and Form N-SAR, filed twice a year. The Trust's SAI and
Shareholder Reports will be available free upon request from the Trust,
and those documents and the Form N-CSR and Form N-SAR may be viewed on-
screen or downloaded from the Commission's Web site at www.sec.gov.
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. Quotation and last sale information for the
Shares will be available via the Consolidated Tape Association
(``CTA'') high-speed line. In addition, the Portfolio Indicative Value,
as defined in NYSE Arca Equities Rule 8.600(c)(3), will be widely
disseminated at least every 15 seconds during the Core Trading Session
by one or more major market data vendors.\19\ The dissemination of the
Portfolio Indicative Value, together with the Disclosed Portfolio, will
allow investors to determine the value of the underlying portfolio of
the Fund on a daily basis and to provide a close estimate of that value
throughout the trading day. The intra-day, closing and settlement
prices of the portfolio investments (e.g., Futures Instruments, ETFs,
Underlying ETPs and fixed income securities) are also readily available
from the national securities and futures exchanges trading such
securities and futures, as applicable, automated quotation systems,
published or other public sources, or on-line information services such
as Bloomberg or Reuters.
---------------------------------------------------------------------------

    \19\ Currently, it is the Exchange's understanding that several
major market data vendors widely disseminate Portfolio Indicative
Values taken from CTA or other data feeds.
---------------------------------------------------------------------------

    Additional information regarding the Trust and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio

holdings disclosure policies, distributions and taxes is included in
the Registration Statement. All terms relating to the Fund that are
referred to, but not defined in, this proposed rule change are defined
in the Registration Statement.
Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Fund.\20\ 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. These may include: (1) The
extent to which trading is not occurring in the securities and/or the
financial instruments comprising the Disclosed Portfolio of the Fund;
or (2) whether other unusual conditions or circumstances detrimental to
the maintenance of a fair and orderly market are present. 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.
---------------------------------------------------------------------------

    \20\ See NYSE Arca Equities Rule 7.12, Commentary .04.
---------------------------------------------------------------------------

Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m. E.T. in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all trading sessions. As provided in
NYSE Arca Equities Rule 7.6, Commentary .03, the minimum price
variation (``MPV'') for quoting and entry of orders in equity
securities traded on the NYSE Arca Marketplace is $0.01, with the
exception of securities that are priced less than $1.00 for which the
MPV for order entry is $0.0001.
Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange,
which are designed to detect violations of Exchange rules and
applicable federal securities laws.\21\ The Exchange represents that
these procedures 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.
---------------------------------------------------------------------------

    \21\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations. FINRA, on
behalf of the Exchange, will communicate as needed regarding trading in
the Shares with other markets that are members of the Intermarket
Surveillance Group (``ISG''), or with which the Exchange has in place a
comprehensive surveillance sharing agreement.\22\ The Chicago
Mercantile Exchange (``CME''), the Chicago Board of Trade, the New York
Mercantile Exchange (``NYMEX''), and ICE Futures U.S. are members of
ISG, and the Exchange may obtain market surveillance information with
respect to transactions occurring on the COMEX pursuant to the ISG
memberships of CME and NYMEX. The Exchange has in place a comprehensive
surveillance sharing agreement with the Kansas City Board of Trade and
ICE Futures U.K. relating to trading of applicable components of the
Benchmark.
---------------------------------------------------------------------------

    \22\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio for the Fund may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    In addition, with respect to futures contracts in which the
Subsidiary invests, not more than 10% of the weight of such futures
contracts in the aggregate shall consist of futures contracts whose
principal trading market (a) is not a member of ISG or (b) is a market
with which the Exchange does not have a comprehensive surveillance
sharing agreement, provided that, so long as the Exchange may obtain
market surveillance information with respect to transactions occurring
on the COMEX pursuant to the ISG memberships of CME and NYMEX, futures
contracts whose principal trading market is COMEX shall not be subject
to the prohibition in (a), above.
    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit Holders in an Information Bulletin (``Bulletin'')
of the special characteristics and risks associated with trading the
Shares. Specifically, the Bulletin will discuss the following: (1) The
procedures for purchases and redemptions of Shares in Creation Units
(and that Shares are not individually redeemable); (2) NYSE Arca
Equities Rule 9.2(a), which imposes a duty of due diligence on its
Equity Trading Permit Holders to learn the essential facts relating to
every customer prior to trading the Shares; (3) 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; (4) how information regarding the Portfolio Indicative
Value will be disseminated; (5) the requirement that Equity Trading
Permit Holders deliver a prospectus to investors purchasing newly
issued Shares prior to or concurrently with the confirmation of a
transaction; and (6) trading information.
    In addition, the Bulletin will reference that the Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Act. The
Bulletin will also disclose that the NAV for the Shares will be
calculated after 4:00 p.m. E.T. each trading day.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \23\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.600. The Exchange has in place

surveillance procedures that are adequate to properly monitor trading
in the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities laws.
FINRA, on behalf of the Exchange, will communicate as needed regarding
trading in the Shares with other markets that are members of the ISG,
including all U.S. securities exchanges and futures exchanges on which
the Benchmark Components are traded, or with which the Exchange has in
place a comprehensive surveillance sharing agreement. The Adviser is
not a broker-dealer but is affiliated with a broker-dealer, and has
implemented a fire wall with respect to its broker-dealer affiliate
regarding access to information concerning the composition and/or
changes to the portfolio. The Fund will invest up to 25% of its total
assets in the Subsidiary. FINRA, on behalf of the Exchange, will
communicate as needed regarding trading in the Shares with other
markets that are members of the ISG, or with which the Exchange has in
place a comprehensive surveillance sharing agreement. The CME, the
Chicago Board of Trade, the NYMEX, and ICE Futures U.S. are members of
ISG, and the Exchange may obtain market surveillance information with
respect to transactions occurring on the COMEX pursuant to the ISG
memberships of CME and NYMEX. The Exchange has in place a comprehensive
surveillance sharing agreement with the Kansas City Board of Trade and
ICE Futures U.K. relating to trading of applicable components of the
Benchmark. In addition, with respect to futures contracts in which the
Subsidiary invests, not more than 10% of the weight of such futures
contracts in the aggregate shall consist of futures contracts whose
principal trading market is not a member of ISG or is a market with
which the Exchange does not have a comprehensive surveillance sharing
agreement, as described above under ``Surveillance.'' The Fund will
limit its investments in illiquid securities, including Rule 144A
securities and master demand notes, to 15% of its net assets. The Fund
will not invest directly in Futures Instruments and the Fund expects to
exclusively gain exposure to these futures investments by investing in
the Subsidiary. The Fund will not invest in any non-U.S. equity
securities (other than shares of the Subsidiary). The Fund's
investments will not be used to seek performance that is the multiple
or inverse multiple (i.e., 2X and 3X) of the Fund's Benchmark. The
Fund's investments will be consistent with the Fund's investment
objective and will not be used to enhance leverage.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
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. In addition, a large amount of
information will be publicly available regarding the Fund and the
Shares, thereby promoting market transparency. Moreover, the Portfolio
Indicative Value will be widely disseminated through the facilities of
the CTA or by one or more major market data vendors at least every 15
seconds during the Exchange's Core Trading Session. 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 that will form the basis for the Fund's calculation
of NAV at the end of the business day. 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, and quotation and last sale information will
be available via the CTA high-speed line. The Web site for the Fund
will include a form of the prospectus for the Fund and additional data
relating to NAV and other applicable quantitative information.
Moreover, prior to the commencement of trading, the Exchange will
inform its Equity Trading Permit Holders in a Bulletin of the special
characteristics and risks associated with trading the Shares. Trading
in Shares of the Fund will be halted if the circuit breaker parameters
in NYSE Arca Equities Rule 7.12 have been reached or because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable, and trading in the Shares will be
subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth
circumstances under which trading in Shares of the Fund may be halted.
In addition, as noted above, investors will have ready access to
information regarding the Fund's holdings, the Portfolio Indicative
Value, the Disclosed Portfolio, and quotation and last sale information
for the Shares. The intra-day, closing and settlement prices of the
portfolio investments (e.g., Futures Instruments, ETFs, Underlying ETPs
and fixed income securities) are also readily available from the
national securities and futures exchanges trading such securities and
futures, as applicable, automated quotation systems, published or other
public sources, or on-line information services such as Bloomberg or
Reuters. The Fund will not invest in any non-U.S. equity securities
(other than shares of the Subsidiary), and the Subsidiary will not
invest in any non-U.S. equity securities.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an additional type of actively-managed exchange-traded product that
will enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, as noted above, investors
will have ready access to information regarding the Fund's holdings,
the Portfolio Indicative Value, the Disclosed Portfolio, and quotation
and last sale information for the Shares.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The proposed rule change will
facilitate the listing and trading of an additional type of actively-
managed exchange-traded product that invests in exchange-listed futures
contracts and that will enhance competition among market participants,
to the benefit of investors and the marketplace.

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

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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory

organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml ); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2013-52 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2013-52. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2013-52 and should
be submitted on or before June 20, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

    \24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2013-12846 Filed 5-29-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 188 (Tuesday, September 29, 2015)]
[Rules and Regulations]
[Pages 58346-58349]
[FR Doc No: 2015-24146]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2014-0929; Directorate Identifier 2014-NM-118-AD;
Amendment 39-18274; AD 2015-19-12]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for certain
The Boeing Company Model 767 airplanes. This AD was prompted by reports
that six fasteners may not have been installed in the left and right
stringer 37 (S-37) between body stations (BS) 428 and 431 lap splices
on certain airplanes. This AD requires a general visual inspection of
S-37 lap splices for missing fasteners, and all applicable related
investigative and corrective actions. We are issuing this AD to detect
and correct missing fasteners, which could result in cracks in the
fuselage skin that could adversely affect the structural integrity of
the airplane.

DATES: This AD is effective November 3, 2015.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of November 3,
2015.

ADDRESSES: For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; telephone 206-544-
5000, extension 1; fax<PHONE_NUMBER>; Internet https://www.myboeingfleet.com. You may view this referenced service information
at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW.,
Renton, WA. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2014-
0929.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2014-
0929; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket

contains this AD, the regulatory evaluation, any comments received, and
other information. The address for the Docket Office (phone: 800-647-
5527) is Docket Management Facility, U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Wayne Lockett, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office
(ACO), 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425-917-
6447; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to certain The Boeing Company
Model 767 airplanes. The NPRM published in the Federal Register on
December 29, 2014 (79 FR 77970). The NPRM was prompted by reports that
six fasteners may not have been installed in the left and right S-37
between BS 428 and 431 lap splices on certain airplanes. The NPRM
proposed to require a general visual inspection of S-37 lap splices for
missing fasteners, and all applicable related investigative and
corrective actions. We are issuing this AD to detect and correct
missing fasteners, which could result in cracks in the fuselage skin
that could adversely affect the structural integrity of the airplane.

Comments

    We gave the public the opportunity to participate in developing
this AD. The following presents the comments received on the NPRM (79
FR 77970, December 29, 2014) and the FAA's response to each comment.

Support for the NPRM (79 FR 77970, December 29, 2014)

    Boeing and Debra Abdou supported the NPRM (79 FR 77970, December
29, 2014). FedEx Express explained that the NPRM will not impact them.
United Airlines stated that it has no comment on the NPRM.

Request for Credit for Previous Actions

    United Parcel Service (UPS) requested that we revise the NPRM (79
FR 77970, December 29, 2014), to clarify that no further actions are
required for airplanes that have previously accomplished inspections
and corrective actions as specified in Boeing Message TBC-UPS-13-0004-
01B (Service Request 1-2412169241), dated February 1, 2013.
    UPS explained that, prior to the release of Boeing Alert Service
Bulletin 767-53A0251, dated August 7, 2013, Boeing had released Boeing
Fleet Team Digest article 767-FTD-53-12003, dated September 21, 2012;
and Boeing Message TBC-UPS-13-0004-01B (Service Request 1-2412169241),
dated February 1, 2013; to address the discrepant condition and provide
applicable corrective actions. UPS stated that it has previously
accomplished inspections and corrective actions on all affected UPS
Model 767-300F series airplanes in accordance with Boeing Fleet Team
Digest article 767-FTD-53-12003 dated September 21, 2012, and Boeing
Message TBC-UPS-13-0004-01B (Service Request 1-2412169241), dated
February 1, 2013. Per Boeing Message TBC-UPS-13-0004-01B (Service
Request 1-2412169241), dated February 1, 2013, the following corrective
actions are to be accomplished prior to further flight if the affected
fasteners are found missing:
     Remove the center row and adjacent fasteners around the
missing fastener locations.
     Perform open-hole high frequency eddy current (HFEC)
inspection for damages.
     If no damage is found, install BACR15FV6KE* rivets per the
Boeing installation drawing.
     If damage is found, repair per the service repair manual
section defined in the future service bulletin.
    UPS reasoned that, as indicated in Boeing Message TBC-UPS-13-0004-
01B (Service Request 1-2412169241), dated February 1, 2013, the
additional detailed inspection shown in Figure 2, Step 1, of Boeing
Alert Service Bulletin 767-53A0251, dated August 7, 2013, is not
required to detect damages resulting from the discrepant condition. UPS
expressed that, as supported by Boeing Message TBC-UPS-13-0004-01B
(Service Request 1-2412169241), dated February 1, 2013, the open-hole
HFEC inspection is sufficient for detecting and eliminating damage
resulting from the identified unsafe condition. UPS pointed out that
standard maintenance procedures ensure that the external and internal
areas accessed and disturbed during accomplishment of the repair are
restored to normal configuration. Furthermore, UPS explained that
supplemental internal and external inspections of the affected area are
accomplished per UPS maintenance program as specified in Boeing
Maintenance Planning Document Items 53-460-00, 53-648-00, 53-800-00,
and 53-820-00.
    We disagree to provide credit for certain actions required by this
AD if those actions were performed before the effective date of this AD
using Boeing Message TBC-UPS-13-0004-01B (Service Request 1-2412169241)
dated February 1, 2013. It is possible that individual instructions
provided to the specific operator via Boeing Message TBC-UPS-13-0004-
01B (Service Request 1-2412169241), dated February 1, 2013, may have
different instructions than those specified in the Accomplishment
Instructions of Boeing Alert Service Bulletin 767-53A0251, dated August
7, 2013. However, under the provisions of paragraph (i) of this AD, we
will consider requests for approval of credit for certain actions if
sufficient data are submitted to substantiate that the change would
provide an acceptable level of safety. We have made no changes to this
AD in this regard.

Effect of Winglets on AD

    Aviation Partners Boeing stated that accomplishing the supplemental
type certificate (STC) ST01920SE (http://rgl.faa.gov/
Regulatory_and_Guidance_Library/rgstc.nsf/0/
59027f43b9a7486e86257b1d006591ee/$FILE/ST01920SE.pdf) does not affect
the actions specified in the NPRM (79 FR 77970, December 29, 2014). We
concur with the commenter. We have redesignated paragraph (c) of the
proposed AD as paragraph (c)(1) and added new paragraph (c)(2) to this
AD to state that installation of STC ST01920SE does not affect the
ability to accomplish the actions required by this final rule.
Therefore, for airplanes on which STC ST01920SE is installed, a
``change in product'' alternative method of compliance (AMOC) approval
request is not necessary to comply with the requirements of 14 CFR
39.17.

Related Service Information Under 1 CFR Part 51

    Boeing has issued Boeing Alert Service Bulletin 767-53A0251, dated
August 7, 2013. The service information describes procedures for an
external general visual inspection of the S-37 lap splice for missing
fasteners, detailed and open-hole inspections of the skin for any
crack, corrosion, or other discrepancy; determining if the crack,
corrosion, or other discrepancy is within the repair limits, and
repairing. 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 of this AD.

Conclusion

    We reviewed the relevant data, considered the comments received,
and determined that air safety and the public interest require adopting
this AD with the changes described previously and minor editorial
changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM (79 FR 77970, December 29, 2014) for correcting the unsafe
condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM (79 FR 77970, December 29, 2014).

Costs of Compliance

    We estimate that this AD affects 23 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
               Action                        Labor cost           Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
General visual inspection...........  1 work-hour x $85 per                $0              $85           $1,955
                                       hour = $85.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary inspections/
installations that would be required based on the results of the
required inspection. We have no way of determining the number of
aircraft that might need these inspections/installations:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                  Action                                Labor cost                 Parts cost        product
----------------------------------------------------------------------------------------------------------------
Detailed and HFEC inspections and fastener  13 work-hours x $85 per hour =                   *           $1,105
 installation.                               $1,105.
----------------------------------------------------------------------------------------------------------------
* All parts that are required are supplied by the operator. This cost is minimal, and we have no way to
  determine what the operators would pay for these parts.

    We have received no definitive data that would enable us to provide
cost estimates for the repairs specified in this AD.
    According to the manufacturer, some of the costs of this AD may be
covered under warranty, thereby reducing the cost impact on affected
individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all costs in our cost
estimate.

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 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 (AD):

2015-19-12 The Boeing Company: Amendment 39-18274; Docket No. FAA-
2014-0929; Directorate Identifier 2014-NM-118-AD.

(a) Effective Date

    This AD is effective November 3, 2015.

(b) Affected ADs

    None.

(c) Applicability

    (1) This AD applies to The Boeing Company Model 767-200, -300, -
300F, and -400ER series airplanes, certificated in any category, as
identified in Boeing Alert Service Bulletin 767-53A0251, dated
August 7, 2013.
    (2) Installation of Supplemental Type Certificate (STC)
[ST01920SE (http://rgl.faa.gov/Regulatory_and_Guidance_Library/
rgstc.nsf/0/59027f43b9a7486e86257b1d00659v1ee/$FILE/ST01920SE.pdf)
does not affect the ability to accomplish the actions required by
this AD. Therefore, for airplanes on which STC ST01920SE is
installed, a ``change in product'' alternative method of compliance
(AMOC) approval

request is not necessary to comply with the requirements of 14 CFR
39.17.

(d) Subject

    Air Transport Association (ATA) of America Code 53, Fuselage.

(e) Unsafe Condition

    This AD was prompted by reports that six fasteners may not have
been installed in the left and right stringer 37 (S-37) between body
stations (BS) 428 and 431 lap splices on certain airplanes. We are
issuing this AD to detect and correct missing fasteners, which could
result in cracks in the fuselage skin that could adversely affect
the structural integrity of the airplane.

(f) Compliance

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

(g) Inspections, Related Investigative Actions, and Corrective Actions

    Except as provided by paragraph (h)(2) of this AD, at the
applicable time specified in paragraph 1.E., ``Compliance,'' of
Boeing Alert Service Bulletin 767-53A0251, dated August 7, 2013: Do
an external general visual inspection of the S-37 lap splice for
missing fasteners, and do all applicable related investigative and
corrective actions, in accordance with the Accomplishment
Instructions of Boeing Alert Service Bulletin 767-53A0251, dated
August 7, 2013, except as provided by paragraph (h)(1) of this AD.
Do all applicable related investigative and corrective actions
before further flight.

(h) Exceptions to Service Information Specifications

    (1) Although Boeing Alert Service Bulletin 767-53A0251, dated
August 7, 2013, specifies to contact Boeing for repair instructions,
and specifies that action as ``RC'' (Required for Compliance), this
AD requires repair before further flight using a method approved in
accordance with the procedures specified in paragraph (i)(1) of this
AD.
    (2) Where Paragraph 1.E., ``Compliance,'' of Boeing Alert
Service Bulletin 767-53A0251, dated August 7, 2013, specifies a
compliance time ``after the original issue date of this service
bulletin,'' this AD requires compliance within the specified
compliance time after the effective date of this AD.

(i) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19. In accordance with 14
CFR 39.19, send your request to your principal inspector or local
Flight Standards District Office, as appropriate. If sending
information directly to the manager of the ACO, send it to the
attention of the person identified in paragraph (j) of this AD.
Information may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD if it is approved by the
Boeing Commercial Airplanes Organization Designation Authorization
(ODA) that has been authorized by the Manager, Seattle ACO, to make
those findings. For a repair method to be approved, the repair must
meet the certification basis of the airplane and the approval must
specifically refer to this AD.
    (4) Except as required by paragraph (h)(1) of this AD: For
service information that contains steps that are labeled as Required
for Compliance (RC), the provisions of paragraphs (i)(4)(i) and
(i)(4)(ii) of this AD apply.
    (i) The steps labeled as RC, including substeps under an RC step
and any figures identified in an RC step, must be done to comply
with the AD. An AMOC is required for any deviations to RC steps,
including substeps and identified figures.
    (ii) Steps not labeled as RC may be deviated from using accepted
methods in accordance with the operator's maintenance or inspection
program without obtaining approval of an AMOC, provided the RC
steps, including substeps and identified figures, can still be done
as specified, and the airplane can be put back in an airworthy
condition.

(j) Related Information

    For more information about this AD, contact Wayne Lockett,
Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle ACO,
1601 Lind Avenue SW., Renton, WA 98057-3356; phone:<PHONE_NUMBER>;
fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
(k) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Boeing Alert Service Bulletin 767-53A0251, dated August 7,
2013.
    (ii) Reserved.
    (3) For Boeing service information identified in this AD,
contact Boeing Commercial Airplanes, Attention: Data & Services
Management, P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207;
telephone<PHONE_NUMBER>, extension 1; fax<PHONE_NUMBER>; Internet
https://www.myboeingfleet.com.
    (4) You may view this service information at FAA, Transport
Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For
information on the availability of this material at the FAA, call
425-227-1221.
    (5) You may view this service information that is incorporated
by reference 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 Renton, Washington, on September 11, 2015.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-24146 Filed 9-28-15; 8:45 am]
 BILLING CODE 4910-13-P