[Federal Register: July 14, 2008 (Volume 73, Number 135)]
[Notices]
[Page 40403-40407]
[DOCID:fr14jy08-131]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58103; File No. SR-FINRA-2008-036]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a Proposed Rule Change Relating to
the Incorporated NYSE Rules

July 3, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 3, 2008, Financial Industry Regulatory Authority, Inc.
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc.
(``NASD'')) 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 substantially by FINRA.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA proposes to amend certain rules of the New York Stock
Exchange LLC (``NYSE'') to reduce regulatory duplication and relieve
firms that are members of both FINRA and the NYSE (``Dual Members'') of
conflicting or unnecessary regulatory burdens in the interim period
before a consolidated FINRA rulebook is completed.\3\ The text of the
proposed rule change is available at http://www.finra.org, the
principal offices of FINRA, and the Commission's Public Reference Room.
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    \3\ This proposal is an extension of the SRO Rule Harmonization
Initiative, which compared NYSE regulatory requirements to
corresponding NASD regulatory provisions. The purpose of the process
was to achieve, to the extent practicable, substantive harmonization
of the two regulatory schemes.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

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

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

1. Purpose

Background

    On July 30, 2007, FINRA was formed through the consolidation of
NASD and the member regulation, enforcement and arbitration operations
of NYSE. As part of the consolidation, FINRA incorporated into its
rulebook certain NYSE rules related to member firm conduct
(``Incorporated NYSE Rules''). As a result, the current FINRA rulebook
consists of two sets of rules: (1) NASD Rules and (2) Incorporated NYSE
Rules (together referred to herein as the ``Transitional Rulebook'').
While the NASD Rules generally apply to all FINRA members, the
Incorporated NYSE Rules apply only to Dual Members. FINRA is developing
a new consolidated rulebook (``Consolidated FINRA Rulebook''), which,
upon completion, will consist only of FINRA Rules.
    In the interim period before the Consolidated FINRA Rulebook is
completed, FINRA is proposing amendments to certain Incorporated NYSE
Rules to reduce regulatory disparities and to relieve Dual Members of
conflicting or unnecessary regulatory burdens. The proposed rule change
includes those rule changes proposed in the NYSE's Omnibus filing that
would reach an interim solution to an unnecessary regulatory burden or
to an inconsistent standard between the Incorporated NYSE Rules and
NASD Rules.\4\ Additionally, this proposal would rescind certain
Incorporated NYSE Rules in substantive areas that are sufficiently
addressed by NASD Rules.
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    \4\ See Securities Exchange Act Release No. 56142 (July 26,
2007), 72 FR 42195 (August 1, 2007) (SR-NYSE-2007-22).
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    FINRA believes that the proposed rule change will provide a timely
solution to achieve greater harmonization between Incorporated NYSE
Rules and NASD Rules of similar purpose, resulting in less burdensome
and more efficient regulatory compliance for Dual Members. The proposed
rule change would affect the Transitional Rulebook in its application
to Dual Members only and does not necessarily reflect FINRA's intent or
conclusion as to the ultimate rule text that will populate the
Consolidated FINRA Rulebook.

Proposed Amendments

Allied Member

    The proposed rule change would delete the term ``allied member''
from the Incorporated NYSE Rules. The ``allied member'' designation is
a regulatory category based on a person's ``control'' over a member
organization.\5\ Allied membership, as currently administered, has no
direct analogue under the FINRA membership scheme.
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    \5\ See NYSE Rule 304(b) (Allied Members and Approved Persons).
FINRA did not incorporate NYSE Rule 304.
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    NYSE Rule 2(c) currently defines the term ``allied member'' as a
natural person who is a general partner of a member organization or
other employee of a member organization who controls,\6\ or is a
principal executive officer of, such member organization, and who has
been approved by the NYSE as an allied member. In instances where the
term ``allied member'' appears in a rule to denote an individual's
status as a member organization ``control person,'' FINRA is proposing
to substitute, for the term ``allied member,'' the newly defined
category of ``principal executive'' (see proposed NYSE Rule 311.17).
The proposed definition for ``principal executive'' is identical to the
current definition of ``principal executive officer'' in NYSE Rule
311(b)(5) with additional language to clarify that the functional
equivalents of such persons would also be included in this category. As
such, FINRA is proposing to replace ``principal executive officer''
with ``principal executive.''
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    \6\ See NYSE Rule 2(f) for the definition of ``control.''
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    A ``principal executive'' would be defined to include: An employee
of a member organization designated to exercise senior principal
executive

responsibility over the various areas of the business of the member
organization including: Operations, compliance with rules and
regulations of regulatory bodies, finances and credit, sales,
underwriting, research and administration; and any employee of a member
organization who is a functional equivalent of such person. Thus, the
``principal executive'' designation would encompass each Chief
Executive Officer, Chief Financial Officer, Chief Operations Officer,
Chief Compliance Officer, Chief Legal Officer or any person assigned
comparable functions or responsibilities (e.g., a person in a Limited
Liability Company with principal executive responsibilities but with
other than a principal executive title).
    Unlike the ``allied member'' designation, ``principal executive''
would not require a registration process, approval by the NYSE or a
particular qualification examination. However, each ``principal
executive'' would be required to take and pass any qualification
examinations necessary to perform his or her assigned functions.

Buy-In Rules

    In an effort to harmonize and update the SRO Operational, Clearing
and Settlement Rules (collectively referred to herein as the ``Buy-In
Rules''), FINRA is proposing to reposition NYSE Rules 283, 285, 286,
287, 288, 289, and 290 into NYSE Rule 282 so that NYSE Rule 282 would
serve as a complete, central repository for all requirements and
procedures related to transactions subject to the Buy-In Rules. The
substance of the repositioned rules would not be altered by the
proposed rule change. The proposed rule change would bring the NYSE
Buy-In Rules closer to the format of NASD Rule 11810 (Buying-In).
    Additionally, consistent with the NYSE's Omnibus filing, FINRA is
proposing to add the substance of NYSE Rule 140 to NYSE Rule 282.\7\
Although FINRA did not incorporate NYSE Rule 140 into its rulebook,
FINRA staff believes that the Omnibus proposal appropriately places the
substance of NYSE Rule 140 into Rule 282. FINRA is also proposing
amendments to the current text of NYSE Rule 282 to clarify that fails
that are subject to the rules of a Qualified Clearing Agency must
comply with the procedures or requirements of the Qualified Clearing
Agency. This proposal harmonizes the scope of NYSE Rule 282 with the
scope of NASD's 11000 Rule Series.
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    \7\ See proposed Rule 282.15.
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    Lastly, the proposed rule change would amend NYSE Rule 282 to adopt
certain provisions of NASD Rule 11810 to further harmonize the
requirements related to transactions subject to the Buy-In Rules.
Specifically, FINRA proposes to add to the Supplementary Material of
NYSE Rule 282 the following sections of NASD Rule 11810: (f)
(Securities in Transit); (h) (``Close-Out'' Under Committee or Exchange
Rulings); (i) (Failure to Deliver and Liability Notice Procedures); (j)
(Contracts Made for Cash); (l) (``Buy-In'' Desk Required); and (m)
(Buy-In of Accrued Securities).

NYSE Rule 311 (Formation and Approval of Member Organizations) and Its
Interpretation

    NYSE Rule 311 governs the formation and approval of member
organizations. In addition to the ``allied member'' proposals to NYSE
Rule 311 noted above, the proposed rule change would delete paragraph
(h) of NYSE Rule 311, which prescribes the number of partners to be
named in a member organization in order for it to conduct business.
There is no equivalent NASD requirement. The proposed deletion
recognizes that NYSE Rule 311(h) is outdated and no longer necessary in
light of the current spectrum of member organizations' business models.

NYSE Rule 342.13 (Acceptability of Supervisors) and Its Interpretation

    NYSE Rule 342.13(a) currently requires that persons who are to be
assigned certain prescribed supervisory responsibilities \8\ have a
creditable three-year record as a registered representative or have
three years of equivalent experience before functioning as a
supervisor.\9\ FINRA is proposing to amend NYSE Rule 342.13(a) and its
Interpretation to eliminate the prescribed three-year record
requirement for supervisory personnel. Additionally, the proposal would
conform NYSE Rule 342.13(a) to the standard outlined in NASD Rule
1014(a)(10)(D) with respect to firms that are submitting an application
to become FINRA members. In such instances, supervisory candidates
would be required to have one year of ``direct experience'' or two
years of ``related experience'' in the subject area to be supervised.
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    \8\ In this regard, NYSE Rule 342.13(a) references NYSE Rule
342(d) which requires that ``[q]ualified persons acceptable to the
Exchange shall be in charge of: (1) Any office of a member or member
organization, (2) any regional or other group of offices, (3) any
sales department or activity.''
    \9\ NYSE Rule 342.13(a) also requires that persons assigned
supervisory responsibility pursuant to NYSE Rule 342(d) must pass a
qualification examination acceptable to the NYSE that demonstrates
competence relevant to assigned responsibilities.
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NYSE Rule 345 (Employees--Registration, Approval, Records) and Its
Interpretation

    NYSE Rule 345 and its Interpretation \10\ currently provide that
certain exam-qualified registered persons will not receive NYSE
approval to perform functions pursuant to such qualifications without
first completing certain prescribed training periods. To harmonize NYSE
Rule 345 with NASD registration requirements, FINRA is proposing to
eliminate the prescribed training periods in NYSE Rule 345 and its
Interpretation. The proposed amendments would allow member
organizations to determine, consistent with their overall supervisory
obligations, the extent and duration of training for such registered
persons before they are permitted to perform functions requiring
registration.
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    \10\ See NYSE Rule Interpretation 345.15/01 and /02.
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    NYSE Rule 345(a) prohibits member organizations from permitting any
natural person to perform regularly the duties customarily performed by
a registered representative, a securities lending representative, a
securities trader or a direct supervisor of such persons, unless such
person shall have been registered with, qualified by and is acceptable
to the NYSE. To reduce regulatory duplication and in furtherance of the
SRO Rule Harmonization Initiative, the proposed rule change would limit
the prohibition in paragraph (a) to securities lending representatives
and their direct supervisors. The substance of NYSE Rule 345(a) with
respect to registered representatives and their supervisors is
effectively addressed by NASD Rule 1031. FINRA is proposing to delete
the registration category of ``securities trader'' from the
Incorporated NYSE Rules because it does not serve any regulatory
purpose. Registration as a securities trader requires an individual to
pass the Series 7 examination, which qualifies an individual as a
general securities representative. FINRA understands that the
securities trader registration category was created to avoid
application of the four-month training requirement for a registered
representative.\11\ In view of the fact that the four-month training
requirement in NYSE Rule 345 is being eliminated, there is no need for
an additional registration category tied to the Series 7. However, if
the NYSE wishes to retain

the securities trader registration category, it can do so in a unique
NYSE rule.
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    \11\ See NYSE Rule 345.15(b)(2) and (5).
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    NYSE Rule 345(b) currently prohibits any natural person, other than
a member or allied member, to assume the duties of an officer with the
power to legally bind such member or member organization unless such
member or member organization has filed an application with and
received the approval of the NYSE. The proposed rule change would
delete NYSE Rule 345(b) in its entirety. There is no equivalent NASD
rule.

NYSE Rule 346 (Limitations--Employment and Association With Members and
Member Organizations) and Its Interpretation

    NYSE Rule 346 sets forth limitations on the outside business
activities of member organization employees. FINRA is proposing to
delete NYSE Rule 346(c) which currently requires that prompt written
notice be given to the NYSE whenever any member or member organization
knows, or in the exercise of reasonable care should know, that any
person, other than a member, allied member or employee, directly or
indirectly, controls, is controlled by or is under common control with
such member or member organization. FINRA believes that this provision
is unnecessary as it is a requirement on Form BD that each broker-
dealer disclose such control relationships.\12\ The proposed rule
change also harmonizes with the NASD regulatory structure as there is
no corresponding NASD requirement.
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    \12\ See Question 10 on Form BD.
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    NYSE Rule 407 (Transactions--Employees of Members, Member
Organizations and the Exchange) provides, in part, that no employee of
a member organization shall establish or maintain a securities or
commodities account or enter into a private securities transaction
without the prior written consent of his or her member organization.
FINRA is proposing to reposition the requirements pertaining to
``private securities transactions'' (e.g., interests in oil or gas
ventures, real estate syndications, tax shelters, etc.) from NYSE Rule
407 \13\ to NYSE Rule 346 since NYSE Rule 346 more directly addresses
issues related to the outside activities of registered persons.
Additionally, FINRA is proposing definitions of the terms ``private
securities transactions,'' ``selling compensation'' and ``immediate
family members'' that are substantially identical to the NASD's
corresponding definitions.\14\
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    \13\ See NYSE Rule 407(b) and section .11 in the Supplementary
Material.
    \14\ See proposed changes to NYSE Rule 346 Supplementary
Material.
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    NYSE Rule 346(e) currently requires that persons who are assigned
or delegated supervisory authority pursuant to NYSE Rule 342 devote
their entire time during business hours to their member organization,
unless otherwise permitted by the NYSE. FINRA is proposing amendments
to NYSE Rule 346(e) and Supplementary Material section .10 that would
eliminate the SRO approval requirement in order for supervisory persons
to devote less than their entire time to the business of their member
organization. In lieu thereof, the amended rule would require the prior
written approval of the member organization, pursuant to the exercise
of due diligence, for such arrangements. The proposed rule change would
require the identification of any entity for which the supervisory
person will be performing services during business hours and a
description of such services. The member organization's written
approval would be required to set forth the approximate amount of time
the supervisory person is expected to devote to each entity, with
particular attention paid to the approximate time expected to be
required for the person, based upon qualifications and experience, to
effectively discharge his or her supervisory responsibilities on behalf
of the member organization. In addition, the amendments would require
documentation that the member organization has made a good faith
determination that the arrangement will not compromise the protection
of investors or the public interest, compromise the supervisor's duties
at the member organization, or give rise to a material conflict of
interest. FINRA is also proposing, as conforming changes, to delete the
NYSE Rule 346 Interpretation relating to the outside connections of
supervisory persons \15\ and to amend the Interpretation to NYSE Rule
311, which includes a reference to Rule 346(e).
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    \15\ See NYSE Rule Interpretation 346/03 (Outside Connections--
Supervisory Persons).
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NYSE Rule 351 (Reporting Requirements)

    NYSE Rule 351(d) requires each member organization to report
certain statistical information regarding customer complaints. The
requirement currently extends to both oral and written complaints. The
proposed rule change would adopt NYSE Rule 351.13 to limit the
definition of the term ``customer complaint'' to any written statement
of a customer, or any person acting on behalf of a customer, other than
a broker or dealer, alleging a grievance involving the activities of
those persons under the control of a member organization. This proposed
definition is substantially similar to the current definition in NASD
Rule 3070(c).

NYSE Rule 352 (Guarantees, Sharing in Accounts, and Loan Arrangements)

    NYSE Rule 352 restricts the extent to which member organization
personnel may share in customer account profits or losses. NYSE Rule
352(b) generally prohibits member organizations, allied members and
registered representatives from sharing profits or losses in any
customer account. However, NYSE Rule 352(c) permits such sharing in
proportion to financial contributions made to a joint account.
    First, FINRA is proposing to amend NYSE Rule 352(c) to exempt, from
the proportional contribution requirement, joint accounts with
immediate family members held by principal executives or registered
representatives of a member organization. This amendment would limit
the regulation of accounts that may reasonably entail profit and loss
participation on a disproportionate basis, as with joint accounts
between husband and wife, while retaining coverage of the rule for
other accounts. NASD Rule 2330(f)(1)(A) similarly addresses the
circumstances under which a FINRA member or a person associated with a
FINRA member may share in profits and losses with a customer, provided
such sharing is proportionate to the financial contributions of each
account holder; NASD Rule 2330(f)(1)(B) exempts from this
proportionality requirement accounts shared between an associated
person and a customer who is an immediate family member of such
associated person.
    Second, the proposed rule change would make clear that any sharing
arrangement entered into pursuant to NYSE Rule 352(c) is subject to the
NYSE Rule 352(a) provision that no member organization shall guarantee
or in any way represent that it will guarantee any customer against
loss in any account or on any transaction; and no employee of such
member organization shall guarantee or in any way represent that either
he or she, or his or her employer, will guarantee any customer against
loss in any customer account or on any customer transaction.
    Third, the proposed rule change would define the term ``immediate
family'' in NYSE Rule 352(c) to include

parents, mother-in-law or father-in-law, husband or wife, children or
any relative to whose support the principal executive or registered
representative contributes directly or indirectly. This proposed
definition would harmonize with the standard under NASD Rule
2330(f)(1)(B). The existing definition of ``immediate family'' in NYSE
Rule 352(g) is retained for other provisions in the Rule, essentially
allowing persons acting in the capacity of a registered representative
or principal executive to lend to or borrow from a more extensive range
of family members. The broader NYSE Rule 352(g) standard is also
consistent with the corresponding NASD standard in connection with
borrowing from or lending to customers.\16\
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    \16\ See NASD Rule 2370(c) (Borrowing From or Lending To
Customers).
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    Lastly, FINRA is proposing amendments to NYSE Rule 352(d) to
streamline the reference in the rule to Rule 205-3 of the Investment
Advisers Act of 1940. Specifically, the revised provision would provide
that, notwithstanding the general prohibition against sharing in
profits under paragraph (b), a person acting as an investment adviser
(whether or not registered as such) may receive compensation based on a
share of profits or gains in an account if all of the conditions in
Rule 205-3 of the Investment Advisers Act of 1940 are satisfied. This
proposal better aligns NYSE Rule 352 with NASD Rule 2330(f).

NYSE Rule 404 (Individual Members Not to Carry Accounts)

    A FINRA Letter of Approval that details the scope of approved
activities is sent to new FINRA members. The requirements of NYSE Rule
404 are duplicative of this Letter. Therefore, FINRA is proposing to
rescind NYSE Rule 404.

NYSE Rule 408 (Discretionary Power in Customers' Accounts)

    NYSE Rule 408 provides, in part, that no employee of a member
organization shall exercise discretionary power in any customer's
account or accept orders for an account from a person other than the
customer without first obtaining written authorization from the
customer. FINRA is proposing amendments to NYSE Rule 408(a) that would
require member organizations to obtain the signature of any person or
persons authorized to exercise discretion in such accounts, of any
substitute so authorized, and the date such discretionary authority was
granted. The proposed amendment would conform NYSE Rule 408(a) to
corresponding requirements in NASD Rule 3110(c)(3).

NYSE Rule 412 (Customer Account Transfer Contracts) and Its
Interpretation

    NYSE Rule 412 governs the transfer of customer accounts from one
member to another. This rule is duplicative of NASD Rule 11870
(Customer Account Transfer Contracts). Thus, FINRA is proposing to
rescind NYSE Rule 412 and its Interpretation.

NYSE Rule 436 (Interest on Credit Balances) and Its Interpretation

    FINRA is proposing to rescind NYSE Rule 436 and its Interpretation
as it has become outdated and is no longer applicable to the current
business models of members. There is no comparable NASD Rule.

NYSE Rule 446 (Business Continuity and Contingency Plans)

    NYSE Rule 446 is nearly identical to NASD Rules 3510 (Business
Continuity Plans) and 3520 (Emergency Contact Information). To reduce
regulatory duplication in these areas and to advance the efforts to
create a Consolidated FINRA Rulebook, FINRA is proposing to delete NYSE
Rule 446 because NASD Rules sufficiently address this area.
    Following Commission approval of the proposed rule change, FINRA
will publish a Regulatory Notice(s) setting forth the effective date(s)
of the proposals.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\17\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change will
provide greater harmonization between Incorporated NYSE Rules and NASD
Rules of similar purpose, resulting in less burdensome and more
efficient regulatory compliance for Dual Members. Where proposed
amendments do not entirely conform to existing NASD rules or address a
provision without a direct NASD Rule counterpart, FINRA believes the
standards they would establish otherwise further the objectives of the
Act by providing greater regulatory clarity and practicality and
relieving unnecessary regulatory burdens in the interim period until a
Consolidated FINRA Rulebook is completed.
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    \17\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

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

    Within 35 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 FINRA consents, the Commission will:
    (A) By order approve such proposed rule change; or
    (B) Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2008-036 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FINRA-2008-036. This
file number should be included on the subject line if e-mail 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 inspection and copying in the Commission's Public
Reference Room on official business days between the hours of 10 a.m.
and 3 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of FINRA. 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 publicly available. All submissions
should refer to File Number SR-FINRA-2008-036 and should be submitted
on or before August 4, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15817 Filed 7-11-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 85, Number 122 (Wednesday, June 24, 2020)]
[Rules and Regulations]
[Pages 37760-37763]
[FR Doc No: 2020-12132]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 180

[EPA-HQ-OPP-2020-0045; FRL-10008-92]

Indaziflam; Pesticide Tolerances

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This regulation establishes tolerances for residues of
indaziflam in or on multiple commodities which are identified and
discussed later in this document. Bayer CropScience requested these
tolerances under the Federal Food, Drug, and Cosmetic Act (FFDCA).

DATES: This regulation is effective June 24, 2020. Objections and
requests for hearings must be received on or before August 24, 2020,
and must be filed in accordance with the instructions provided in 40
CFR part 178 (see also Unit I.C. of the SUPPLEMENTARY INFORMATION).

ADDRESSES: The docket for this action, identified by docket
identification (ID) number EPA-HQ-OPP-2020-0045, is available at http://www.regulations.gov or at the Office of Pesticide Programs Regulatory
Public Docket (OPP Docket) in the Environmental Protection Agency
Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334,
1301 Constitution Ave. NW, Washington, DC 20460-0001. The Public
Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Public
Reading Room is<PHONE_NUMBER>, and the telephone number for the OPP
Docket is<PHONE_NUMBER>.
    Please note that due to the public health emergency the EPA Docket
Center (EPA/DC) and Reading Room was closed to public visitors on March
31, 2020. Our EPA/DC staff will continue to provide customer service
via email, phone, and webform. For further information on EPA/DC
services, docket contact information and the current status of the EPA/
DC and Reading Room, please visit https://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: Michael Goodis, Registration Division
(7505P), Office of Pesticide Programs, Environmental Protection Agency,
1200 Pennsylvania Ave. NW, Washington, DC 20460-0001; main telephone
number:<PHONE_NUMBER>; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    You may be potentially affected by this action if you are an
agricultural producer, food manufacturer, or pesticide manufacturer.
The following list of North American Industrial Classification System
(NAICS) codes is not intended to be exhaustive, but rather provides a
guide to help readers determine whether this document applies to them.
Potentially affected entities may include:
     Crop production (NAICS code 111).
     Animal production (NAICS code 112).
     Food manufacturing (NAICS code 311).
     Pesticide manufacturing (NAICS code 32532).

B. How can I get electronic access to other related information?

    You may access a frequently updated electronic version of EPA's
tolerance regulations at 40 CFR part 180 through the Government
Publishing Office's e-CFR site at http://www.ecfr.gov/cgi-bin/text-idx?&c=ecfr&tpl=/ecfrbrowse/Title40/40tab_02.tpl.

C. How can I file an objection or hearing request?

    Under FFDCA section 408(g), 21 U.S.C. 346a, any person may file an
objection to any aspect of this regulation and may also request a
hearing on those objections. You must file your objection or request a
hearing on this regulation in accordance with the instructions provided
in 40 CFR part 178. To ensure proper receipt by EPA, you must identify
docket ID number EPA-HQ-OPP-2020-0045 in the subject line on the first
page of your submission. All objections and requests for a hearing must
be in writing, and must be received by the Hearing Clerk on or before
August 24, 2020. Addresses for mail and hand delivery of objections and
hearing requests are provided in 40 CFR 178.25(b).
    In addition to filing an objection or hearing request with the
Hearing Clerk as described in 40 CFR part 178, please submit a copy of
the filing (excluding any Confidential Business Information (CBI)) for
inclusion in the public docket. Information not marked confidential
pursuant to 40 CFR part 2 may be disclosed publicly by EPA without
prior notice. Submit the non-CBI copy of your objection or hearing
request, identified by docket ID number EPA-HQ-OPP-2020-0045, by one of
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments. Do not submit
electronically any information you consider to be CBI or other
information whose disclosure is restricted by statute.
     Mail: OPP Docket, Environmental Protection Agency Docket
Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC
20460-0001.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http://www.epa.gov/dockets/contacts.html.
    Additional instructions on commenting or visiting the docket, along
with more information about dockets generally, is available at http://www.epa.gov/dockets.

II. Summary of Petitioned-For Tolerance

    In the Federal Register of April 15, 2020 (85 FR 20910) (FRL-10006-
54), EPA issued a document pursuant to FFDCA section 408(d)(3), 21
U.S.C. 346a(d)(3), announcing the filing of a

pesticide petition (PP 8F8725) by Bayer CropScience 2 T.W. Alexander
Drive, Research Triangle Park, NC 27709. The petition requested that 40
CFR part 180 be amended by establishing tolerances for residues of
indaziflam (N-[(1R,2S)-2,3-dihydro-2,6-dimethyl-1H-inden-1-yl]-6-(1-
fluoroethyl)-1,3,5-triazine-2,4-diamine) in or on grass, forage, fodder
and hay, group 17, forage at 30 parts per million (ppm); grass, forage,
fodder and hay, group 17, hay at 10 ppm; sugarcane, cane at 0.01 ppm;
cattle, goat, horse, and sheep fat at 0.07 ppm; cattle, goat, horse,
and sheep meat at 0.01 ppm; cattle, goat, horse, and sheep meat
byproducts at 0.2 ppm; milk at 0.01 ppm; and milk, fat at 0.25 ppm.
That document referenced a summary of the petition prepared by Bayer
CropScience, the registrant, which is available in the docket, http://www.regulations.gov. There were no comments received in response to the
notice of filing.

III. Aggregate Risk Assessment and Determination of Safety

    Section 408(b)(2)(A)(i) of FFDCA allows EPA to establish a
tolerance (the legal limit for a pesticide chemical residue in or on a
food) only if EPA determines that the tolerance is ``safe.'' Section
408(b)(2)(A)(ii) of FFDCA defines ``safe'' to mean that ``there is a
reasonable certainty that no harm will result from aggregate exposure
to the pesticide chemical residue, including all anticipated dietary
exposures and all other exposures for which there is reliable
information.'' This includes exposure through drinking water and in
residential settings but does not include occupational exposure.
Section 408(b)(2)(C) of FFDCA requires EPA to give special
consideration to exposure of infants and children to the pesticide
chemical residue in establishing a tolerance and to ``ensure that there
is a reasonable certainty that no harm will result to infants and
children from aggregate exposure to the pesticide chemical residue. . .
.''
    Consistent with FFDCA section 408(b)(2)(D), and the factors
specified in FFDCA section 408(b)(2)(D), EPA has reviewed the available
scientific data and other relevant information in support of this
action. EPA has sufficient data to assess the hazards of and to make a
determination on aggregate exposure for indaziflam including exposure
resulting from the tolerances established by this action. EPA's
assessment of exposures and risks associated with indaziflam follows.
    On October 10, 2019, EPA published in the Federal Register a final
rule establishing tolerances for residues of indaziflam in or on the
tropical and subtropical fruit (edible peel) group 23 and tropical and
subtropical fruit (inedible peel) group 24 based on the Agency's
conclusion that aggregate exposure to indaziflam is safe for the
general population, including infants and children. See 84 FR 54510
(FRL-9999-70). That document contains a summary of the toxicological
profile and points of departure, assumptions for exposure assessment,
and the Agency's determination regarding the children's safety factor,
which have not changed.
    EPA's dietary exposure assessments have been updated to include the
additional exposure from use of indaziflam on grass forage, grass hay,
and sugarcane cane, and from exposure to residues in edible ruminant
commodities, i.e., reliance on tolerance-level residues for all crops,
maximum anticipated residues for all edible ruminant commodities, and
an assumption of 100 percent crop treated (PCT). EPA's aggregate
exposure assessment incorporated this additional dietary exposure, as
well as exposure in drinking water and from residential sources,
although those latter exposures are not impacted by the new uses on
grass forage, grass hay, and sugarcane cane and thus have not changed
since the last assessment. Further information about EPA's risk
assessment and determination of safety supporting the tolerances
established in the October 10, 2019 Federal Register action, as well as
the new indaziflam tolerances, can be found at http://www.regulations.gov in the document titled ``Indaziflam--Aggregate
Human Health Risk Assessment of the Proposed New Use on Lowbush
Blueberry, and Crop Group Expansions to Tropical and Subtropical Fruit,
Edible Peel, Group 23 and Tropical and Subtropical Fruit, Inedible
Peel, Group 24.'' dated September 11, 2019 in docket ID EPA-HQ-OPP-
2018-0561 and the document titled, ``Indaziflam. Human Health Risk
Assessment in Support of the Proposed New Uses on Grasses, Sugarcane,
Wildlife Management, and Rights-of-Way'' dated April 17, 2020 in docket
ID number EPA-HQ-OPP-2020-0045.
    Acute dietary risks are below the Agency's level of concern: 20% of
the acute population adjusted dose (aPAD) at the 95th percentile of
exposure for all infants less than 1 year old, the population subgroup
with the highest exposure estimate. Chronic dietary risks are below the
Agency's level of concern: 20% of the chronic population adjusted dose
(cPAD) for children 1 to 2 years old, the population subgroup with the
highest exposure estimate. The updated combined short-term food, water,
and residential exposure estimates result in aggregate margins of
exposure (MOEs) above the level of concern (LOC) of 100 for all
scenarios assessed and are not of concern.
    Therefore, based on the risk assessments and information described
above, EPA concludes there is a reasonable certainty that no harm will
result to the general population, or to infants and children, from
aggregate exposure to indaziflam residues. More detailed information on
the subject action to establish tolerances in or on the grass forage,
grass hay, sugarcane cane, and edible ruminant commodities can be found
in the document entitled, ``Indaziflam. Human Health Risk Assessment in
Support of the Proposed New Uses on Grasses, Sugarcane, Wildlife
Management, and Rights-of-Way'' by going to http://www.regulations.gov.
The referenced document is available in the docket established by this
action, which is described under ADDRESSES. Locate and click on the
hyperlink for docket ID number EPA-HQ-OPP-2020-0045.

IV. Other Considerations

A. Analytical Enforcement Methodology

    There are adequate residue analytical methods for enforcing
tolerances for indaziflam residues of concern in/on the registered
plant and livestock commodities. Method DH-003-P07-02 is an adequate
high-performance liquid chromatography with tandem mass spectrometry
(LC-MS/MS) tolerance enforcement method for indaziflam and 1-
fluoroethyl diaminotriazine (FDAT) in crops. Method DH-009-A18-01 is an
adequate LC-MS/MS tolerance enforcement method for the determination of
indaziflam residues in livestock commodities.
    These methods may be requested from: Chief, Analytical Chemistry
Branch, Environmental Science Center, 701 Mapes Rd., Ft. Meade, MD
20755-5350; telephone number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>
B. International Residue Limits

    In making its tolerance decisions, EPA seeks to harmonize U.S.
tolerances with international standards whenever possible, consistent
with U.S. food safety standards and agricultural practices. EPA
considers the international maximum residue limits (MRLs) established
by the Codex Alimentarius Commission (Codex), as required by FFDCA
section 408(b)(4). The Codex Alimentarius is a joint United Nations
Food and Agriculture Organization/World Health

Organization food standards program, and it is recognized as an
international food safety standards-setting organization in trade
agreements to which the United States is a party. EPA may establish a
tolerance that is different from a Codex MRL; however, FFDCA section
408(b)(4) requires that EPA explain the reasons for departing from the
Codex level.
    The Codex has not established any MRLs for indaziflam.

V. Conclusion

    Therefore, tolerances are established for residues of indaziflam,
N-[(1R,2S)-2,3-dihydro-2,6-dimethyl-1H-inden-1-yl]-6-(1-fluoroethyl)-
1,3,5-triazine-2,4-diamine, including its metabolites and degradates in
or on grass, forage, fodder and hay, group 17, forage at 30 ppm; grass,
forage, fodder and hay, group 17, hay at 10 ppm; and sugarcane, cane at
0.01 ppm. Compliance with the tolerance levels specified above is to be
determined by measuring only indaziflam and FDAT, 6-[(1R)-1-
fluoroethyl]-1,3,5-triazine-2,4-diamine, calculated as the
stoichiometric equivalent of indaziflam, in or on the commodity.
    Tolerances are also established for residues of indaziflam, N-
[(1R,2S)-2,3-dihydro-2,6-dimethyl-1H-inden-1-yl]-6-(1-fluoroethyl)-
1,3,5-triazine-2,4-diamine, including its metabolites and degradates in
or on cattle, fat at 0.7 ppm; cattle, meat at 0.01 ppm; cattle, meat
byproducts at 0.2 ppm; goat, fat at 0.07 ppm; goat, meat at 0.01 ppm;
goat, meat byproducts at 0.2 ppm; horse, fat at 0.07 ppm; horse, meat
at 0.01 ppm; horse, meat byproducts at 0.2 ppm; milk at 0.01 ppm; milk,
fat at 0.25 ppm; sheep, fat at 0.07 ppm; sheep, meat at 0.01 ppm; and
sheep, meat byproducts at 0.2 ppm. Compliance with the tolerance levels
specified above is to be determined by measuring only indaziflam in or
on the commodity.
    Lastly, the existing tolerance in paragraph (a) for ``Sugarcane,
refined sugar'' is removed as unnecessary and the tolerances under
paragraph (b), Section 18 emergency exemptions for ``Grass, forage,
fodder, and hay, group 17 forage'', and ``Grass, forage, fodder, and
hay, group 17, hay'' are removed as unnecessary due to the
establishment of the above tolerances.

VI. Statutory and Executive Order Reviews

    This action establishes and modifies tolerances under FFDCA section
408(d) in response to a petition submitted to the Agency. The Office of
Management and Budget (OMB) has exempted these types of actions from
review under Executive Order 12866, entitled ``Regulatory Planning and
Review'' (58 FR 51735, October 4, 1993). Because this action has been
exempted from review under Executive Order 12866, this action is not
subject to Executive Order 13211, entitled ``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use'' (66 FR 28355, May 22, 2001) or Executive Order 13045, entitled
``Protection of Children from Environmental Health Risks and Safety
Risks'' (62 FR 19885, April 23, 1997), nor is it considered a
regulatory action under Executive Order 13771, entitled ``Reducing
Regulations and Controlling Regulatory Costs'' (82 FR 9339, February 3,
2017). This action does not contain any information collections subject
to OMB approval under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501
et seq.), nor does it require any special considerations under
Executive Order 12898, entitled ``Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income
Populations'' (59 FR 7629, February 16, 1994).
    Since tolerances and exemptions that are established on the basis
of a petition under FFDCA section 408(d), such as the tolerances in
this final rule, do not require the issuance of a proposed rule, the
requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et
seq.), do not apply.
    This action directly regulates growers, food processors, food
handlers, and food retailers, not States or tribes, nor does this
action alter the relationships or distribution of power and
responsibilities established by Congress in the preemption provisions
of FFDCA section 408(n)(4). As such, the Agency has determined that
this action will not have a substantial direct effect on States or
Tribal Governments, on the relationship between the National Government
and the States or Tribal Governments, or on the distribution of power
and responsibilities among the various levels of government or between
the Federal Government and Indian Tribes. Thus, the Agency has
determined that Executive Order 13132, entitled ``Federalism'' (64 FR
43255, August 10, 1999) and Executive Order 13175, entitled
``Consultation and Coordination with Indian Tribal Governments'' (65 FR
67249, November 9, 2000) do not apply to this action. In addition, this
action does not impose any enforceable duty or contain any unfunded
mandate as described under Title II of the Unfunded Mandates Reform Act
(UMRA) (2 U.S.C. 1501 et seq.).
    This action does not involve any technical standards that would
require Agency consideration of voluntary consensus standards pursuant
to section 12(d) of the National Technology Transfer and Advancement
Act (NTTAA) (15 U.S.C. 272 note).

VII. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
EPA will submit a report containing this rule and other required
information to the U.S. Senate, the U.S. House of Representatives, and
the Comptroller General of the United States prior to publication of
the rule in the Federal Register. This action is not a ``major rule''
as defined by 5 U.S.C. 804(2).

List of Subjects in 40 CFR Part 180

    Environmental protection, Administrative practice and procedure,
Agricultural commodities, Pesticides and pests, Reporting and
recordkeeping requirements.

    Dated: May 26, 2020.
Michael Goodis,
Director, Registration Division, Office of Pesticide Programs.

    Therefore, 40 CFR chapter I is amended as follows:

PART 180--[AMENDED]

0
1. The authority citation for part 180 continues to read as follows:

    Authority: 21 U.S.C. 321(q), 346a and 371.

0
2. In Sec.  180.653:
0
a. Redesignate paragraph (a) as (a)(1), revise newly redesignated
paragraph (a)(1) introductory text and redesignate the table as Table 1
to paragraph (a)(1);
0
b. In the table in newly redesignated paragraph (a)(1) remove the entry
for ``Sugarcane, refined sugar'' and add alphabetically entries for
``Grass, forage, fodder and hay, group 17, forage''; ``Grass, forage,
fodder and hay, group 17, hay''; and ``Sugarcane, cane'';
0
c. Add paragraph (a)(2); and
0
d. Remove and reserve paragraph (b).
    The additions and revisions read as follows:

Sec.  180.653  Indaziflam; tolerances for residues.

    (a) General (1) Tolerances are established for residues of the
herbicide indaziflam, N-[(1R,2S)-2,3-dihydro-2,6-dimethyl-1H-inden-1-
yl]-6-(1-fluoroethyl)-1,3,5-triazine-2,4-diamine, including its
metabolites and degradates, in or on the commodities in the following
table. Compliance with the tolerance levels specified in the following
table is to be determined by measuring only indaziflam and FDAT,

6-[(1R)-1-fluoroethyl]-1,3,5-triazine-2,4-diamine, calculated as the
stoichiometric equivalent of indaziflam, in or on the commodity.

                       Table 1 to Paragraph (a)(1)
------------------------------------------------------------------------
                                                               Parts per
                          Commodity                             million
------------------------------------------------------------------------

                                * * * * *
Grass, forage, fodder and hay, group 17, forage.............          30
Grass, forage, fodder and hay, group 17, hay................          10

                                * * * * *
Sugarcane, cane.............................................        0.01
------------------------------------------------------------------------

    (2) Tolerances are established for residues of the herbicide
indaziflam, N-[(1R,2S)-2,3-dihydro-2,6-dimethyl-1H-inden-1-yl]-6-(1-
fluoroethyl)-1,3,5-triazine-2,4-diamine, including its metabolites and
degradates, in or on the commodities in the following table. Compliance
with the tolerance levels specified in the following table is to be
determined by measuring only indaziflam in or on the commodity.

                       Table 2 to Paragraph (a)(2)
------------------------------------------------------------------------
                                                               Parts per
                          Commodity                             million
------------------------------------------------------------------------
Cattle, fat.................................................        0.07
Cattle, meat................................................        0.01
Cattle, meat byproducts.....................................         0.2
Goat, fat...................................................        0.07
Goat, meat..................................................        0.01
Goat, meat byproducts.......................................         0.2
Horse, fat..................................................        0.07
Horse, meat.................................................        0.01
Horse, meat byproducts......................................         0.2
Milk........................................................        0.01
Milk, fat...................................................        0.25
Sheep, fat..................................................        0.07
Sheep, meat.................................................        0.01
Sheep, meat byproducts......................................         0.2
------------------------------------------------------------------------

    (b) [Reserved]
* * * * *
[FR Doc. 2020-12132 Filed 6-23-20; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 85, Number 186 (Thursday, September 24, 2020)]
[Proposed Rules]
[Pages 60103-60107]
[FR Doc No: 2020-20947]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0850; Project Identifier AD-2020-00288-E]
RIN 2120-AA64

Airworthiness Directives; General Electric Company Turbofan
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain GEnx-1B64, 1B64/P1, -1B64/P2, -1B67, -1B67/P1, -1B67/P2, -
1B70, -1B70/75/P1, -1B70/75/P2, -1B70/P1, -1B70/P2, -1B70C/P1, -1B70C/
P2, -1B74/75/P1, -1B74/75/P2, -1B76/P2, -1B76A/P2, -2B67, -2B67/P, and
-2B67B model turbofan engines. This proposed AD was prompted by a
finding during an inspection by the manufacturer that two stages 6-10
compressor rotor spools in the high-pressure compressor (HPC) assembly
were damaged at similar locations. Additionally, the manufacturer
reported that certain stages 6-10 compressor rotor spool webs did not
undergo a required fluorescent penetrant inspection (FPI) during
production. This proposed AD would require inspection of the stages 6-
10 compressor rotor spool and, depending on the result of the
inspection, replacement of the stages 6-10 compressor rotor spool with
a part eligible for installation. The FAA is proposing this AD to
address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by November 9,
2020.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact General
Electric Company, 1 Neumann Way, Cincinnati,

OH 45215; phone:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>website: www.ge.com. You may view this
service information at the FAA, Airworthiness Products Section,
Operational Safety Branch, 1200 District Avenue, Burlington, MA 01803.
For information on the availability of this material at the FAA, call
781-238-7759.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0850; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, any comments received, and other information. The street
address for Docket Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Mehdi Lamnyi, Aerospace Engineer, ECO
Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone: (781)
238-7743; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2020-0850;
Project Identifier AD-2020-00288-E'' at the beginning of your comments.
The most helpful comments reference a specific portion of the proposal,
explain the reason for any recommended change, and include supporting
data. The FAA will consider all comments received by the closing date
and may amend this NPRM because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The FAA will also post a report summarizing each substantive
verbal contact received about this proposed AD.

Confidential Business Information

    Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
this NPRM contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this NPRM, it is important that you
clearly designate the submitted comments as CBI. Please mark each page
of your submission containing CBI as ``PROPIN.'' The FAA will treat
such marked submissions as confidential under the FOIA, and they will
not be placed in the public docket of this NPRM. Submissions containing
CBI should be sent to Mehdi Lamnyi, Aerospace Engineer, ECO Branch,
FAA, 1200 District Avenue, Burlington, MA 01803. Any commentary that
the FAA receives which is not specifically designated as CBI will be
placed in the public docket for this rulemaking.

Background

    The FAA received a report from the manufacturer that an inspection
had found two stages 6-10 compressor rotor spools in the HPC assembly
damaged at similar locations on the webs. The subsequent investigation
determined that tool marks were created during the manufacturing
process. In addition, the manufacturer also reported that certain
stages 6-10 compressor rotor spool webs did not undergo a required FPI
during production. This condition, if not addressed, could result in
failure of the compressor rotor spool, uncontained release of debris,
damage to the engine, and damage to the airplane.

FAA's Determination

    The FAA is proposing this AD because the agency evaluated all the
relevant information and determined the unsafe condition described
previously is likely to exist or develop in other products of the same
type design.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed GE GEnx-1B Service Bulletin (SB) 72-0472 R01,
dated July 24, 2020 (``GEnx-1B SB 72-0472'') and GE GEnx-2B SB 72-0415
R01, dated July 24, 2020 (``GEnx-2B SB 72-0415'').
    GEnx-1B SB 72-0472 describes procedures for performing a borescope
inspection (BSI) or an eddy current inspection (ECI) of stage 6, stage
7, and stage 8 webs, web transitions, and bore faces of the stages 6-10
compressor rotor spool for GEnx-1B model turbofan engines. GEnx-1B SB
72-0472 also provides the affected part and serial numbers of the
stages 6-10 compressor rotor spools installed on GEnx-1B model turbofan
engines.
    GEnx-2B SB 72-0415 describes procedures for performing a BSI or an
ECI of stage 6, stage 7, and stage 8 webs, web transitions, and bore
faces of the stages 6-10 compressor rotor spool for GEnx-2B model
turbofan engines. GEnx-2B SB 72-0415 also provides the affected part
and serial numbers of the stages 6-10 compressor rotor spools installed
on GEnx-2B model turbofan engines.
    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.

Other Related Service Information

    The FAA also reviewed Subtask 72-31-45-160-002 of TASK 72-31-45-
200-807 in GE GEnx-1B Engine Manual 05-21-00, Life Limits 001 Mandatory
Inspections, Rev. 31 dated, January 31, 2020; and Subtask 72-31-45-160-
002 of TASK 72-31-45-200-801 in GE GEnx-2B Engine Manual 05-21-00, Life
Limits 001 Mandatory Inspections, Rev. 24 dated, January 31, 2020. The
Subtasks provide guidance on performing the ECI on the stages 6-10
compressor rotor spool on GE GEnx-1B and GEnx-2B model turbofan
engines.
    The FAA also reviewed the following GE SBs: GEnx-1B SB 72-0448 R00,
dated July 29, 2019 (``GEnx-1B SB 72-0448''); GEnx-1B SB 72-0460 R00,
dated October 30, 2019 (``GEnx-1B SB 72-0460''); GEnx-2B SB 72-0385
R02, dated July 29, 2019 (``GEnx-2B SB 72-0385''); and GEnx-2B SB 72-
0398 R00, dated October 30, 2019 (``GEnx-2B SB 72-0398'').
    GEnx-1B SB 72-0448 describes procedures for performing a BSI or an
ECI of the stage 8 aft web of the HPC stages 6-10 rotor spool for GEnx-
1B model turbofan engines. GEnx-1B SB 72-0460 describes procedures for
performing a BSI or an ECI of the stage 6 and stage 7 aft web of the
HPC stages 6-10 rotor spool for GEnx-1B model turbofan engines.
    GEnx-2B SB 72-0385 describes procedures for performing a BSI or an
ECI of the stage 8 aft web of the HPC stages 6-10 spool for GEnx-2B
model turbofan engines. GEnx-2B SB 72-0398 describes procedures for
performing a BSI or an ECI of the stage 6 and stage 7 aft web of the
HPC stages 6-10 rotor spool for GEnx-2B model turbofan engines.

Proposed AD Requirements in This NPRM

    This proposed AD would require inspection of the stages 6-10
compressor rotor spool. Certain affected GEnx-1B or GEnx-2B model
turbofan engines, identified in paragraphs (g)(1)(i) and (g)(1)(ii) of
this proposed

AD, have already completed acceptable inspections of the aft web of
stage 6, stage 7, and stage 8 of the stages 6-10 compressor rotor
spool. This proposed AD would require those affected engines to
complete the inspection of the stages 6-10 compressor rotor spool by
the next engine shop visit. All other affected GEnx-1B or GEnx-2B model
turbofan engines would be required to complete inspection of the stages
6-10 compressor rotor spool before exceeding the compliance times in
Table 1 to paragraph (g)(1) of this AD. Depending on the results of the
inspection, this AD would require replacement of the stages 6-10
compressor rotor spool with a part eligible for installation.

Costs of Compliance

    The FAA estimates that this AD, as proposed, would affect 268
engines installed on airplanes of U.S. registry.
    The FAA estimates the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
BSI of GEnx-1B stage 6, stage 7, and    6 work-hours x $85 per                $0            $510         $89,760
 stage 8 aft webs, web transitions and   hour = $510.
 bore faces of the stages 6-10
 compressor rotor spool.
BSI of GEnx-2B stage 6, stage 7, and    6 work-hours x $85 per                 0             510          46,920
 stage 8 aft webs, web transitions and   hour = $510.
 bore faces of the stages 6-10
 compressor rotor spool.
----------------------------------------------------------------------------------------------------------------

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

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                   Action                                 Labor cost                Parts cost        product
----------------------------------------------------------------------------------------------------------------
Replace the stages 6-10 compressor rotor     64 work-hours x $85 per hour =           $1,018,600      $1,024,040
 spool.                                       $5,440.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13   [Amended]

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

General Electric Company: Docket No. FAA-2020-0850; Project
Identifier AD-2020-00288-E.

0
(a) Comments Due Date
    The FAA must receive comments by November 9, 2020.
0
(b) Affected ADs
    None.
0
(c) Applicability

    This AD applies to:
    (1) General Electric Company (GE) GEnx-1B64, GEnx-1B64/P1, GEnx-
1B64/P2, GEnx-1B67, GEnx-1B67/P1, GEnx-1B67/P2, GEnx-1B70, GEnx-
1B70/75/P1, GEnx-1B70/75/P2, GEnx-1B70/P1, GEnx-1B70/P2, GEnx-1B70C/
P1, GEnx-1B70C/P2, GEnx-1B74/75/P1, GEnx-1B74/75/P2, GEnx-1B76/P2,
GEnx-1B76A/P2 model turbofan engines with stages 6-10 compressor
rotor spools in the high-pressure compressor (HPC) assembly with the
following part numbers (P/N) installed:
    (i) P/N 2357M30G01, P/N 2357M30G02, P/N 2439M35G01, P/N
2439M35G02, or P/N 2445M40G02, all serial numbers (S/Ns);
    (ii) P/N 2610M90G01 with the S/Ns listed in paragraph 4.,
APPENDIX--A, Table 1 of the GE GEnx-1B Service Bulletin (SB) 72-0472
R01, dated July 24, 2020 (``SB 72-0472''); and
    (iii) P/N 2628M56G01 with the S/Ns listed in paragraph 4.,
APPENDIX--A, Table 2 or Table 3 of SB 72-0472.
    (2) GEnx-2B67, GEnx-2B67/P, GEnx-2B67B model turbofan engines
with the following stages 6-10 compressor rotor spools P/Ns
installed:

    (i) P/N 2357M30G02, P/N 2439M35G02, or P/N 2445M40G02, all S/Ns;
    (ii) P/N 2340M36G01with S/Ns listed in paragraph 4., APPENDIX--
A, Table 1 of GE GEnx-2B SB 72-0415 R01, dated July 24, 2020 (``SB
72-0415''); and
    (iii) P/N 2628M56G01 with S/Ns listed in paragraph 4.,
APPENDIX--A, Table 2 or Table 3 of SB 72-0415.

(d) Subject

    Joint Aircraft System Component (JASC) Code 7230, Turbine Engine
Compressor Section.

(e) Unsafe Condition

    This AD was prompted by a finding during an inspection that two
stages 6-10 compressor rotor spools were damaged at similar
locations. In addition, the manufacturer reported that certain
stages 6-10 compressor rotor spool webs did not undergo a required
fluorescent penetrant inspection (FPI) during production. The FAA is
issuing this AD to prevent failure of the compressor rotor spool.
The unsafe condition, if not addressed, could result in uncontained
release of debris, damage to the engine, and damage to the airplane.

(f) Compliance

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

(g) Required Actions

    (1) For all affected GEnx-1B and GEnx-2B model turbofan engines,
before exceeding the compliance time in Table 1 to paragraph (g)(1)
of this AD, perform a borescope inspection (BSI) or eddy current
inspection (ECI) of the stage 6, stage 7, and stage 8 webs, web
transitions, and bore faces of the stages 6-10 compressor rotor
spool in accordance with the Accomplishment Instructions, paragraph
3, of SB 72-0472 (for GEnx-1B models) or the Accomplishment
Instructions, paragraph 3, of SB 72-0415 (for GEnx-2B models).
[GRAPHIC] [TIFF OMITTED] TP24SE20.000

    (i) For GEnx-1B model turbofan engines, except those identified
in paragraph 4, APPENDIX--A, Table 3 of SB 72-0472, if the engines
have previously undergone inspections of the aft web of stage 6,
stage 7, and stage 8 of the stages 6-10 compressor rotor spool using
both GE GEnx-1B SB 72-0448 R00, dated July 29, 2019, and GE GEnx-1B
SB 72-0460 R00, dated October 30, 2019, regardless of the CSN
accumulated on the stages 6-10 compressor rotor spool, perform the
inspection required by paragraph (g)(1) of this AD no later than the
next engine shop visit after the effective date of this AD.
    (ii) For GEnx-2B model turbofan engines, except those identified
in paragraph 4., APPENDIX--A, Table 3 of SB 72-0415, if the engines
have previously undergone inspections of the aft web of stage 6,
stage 7, and stage 8 of the stages 6-10 compressor rotor spool using
both GE GEnx-2B SB 72-385 R02, dated July 29, 2019, and GE GEnx-2B
SB 72-0398 R00, dated October 30, 2019, regardless of the CSN
accumulated on the stages 6-10 compressor rotor spool, perform the
inspection required by paragraph (g)(1) of this AD no later than the
next engine shop visit after the effective date of this AD.
    (2) For all affected GEnx-1B and GEnx-2B model turbofan engines,
during the inspections required by paragraph (g)(1) of this AD, if a
rejectable indication is found, before further flight, remove the
stages 6-10 compressor rotor spool from service and replace it with
a part eligible for installation.

(h) Definition

    For the purpose of this AD, an ``engine shop visit'' is the
induction of an engine into the shop for maintenance involving the
separation of pairs of major mating engine flanges, except that the
separation of engine flanges solely for the purposes of
transportation of the engine without subsequent engine maintenance
does not constitute an engine shop visit.

(i) Credit for Previous Action

    (1) For affected GEnx-1B model turbofan engines, you may take
credit for the BSI or ECI required by paragraph (g)(1) of this AD,
if the stages 6-10 compressor rotor spool webs, web transitions, and
bore faces previously received an ECI using Subtask 72-31-45-160-002
of TASK 72-31-45-200-807 in GE GEnx-1B Engine Manual 05-21-00, Life
Limits 001 Mandatory Inspections, Rev. 31 dated, January 31, 2020,
or earlier, and no rejectable indications were found.
    (2) For affected GEnx-2B model turbofan engines, you may take
credit for the BSI or ECI required by paragraph (g)(1) of this AD,
if the stages 6-10 compressor rotor spool webs, web transitions, and
bore faces previously received an ECI using Subtask 72-31-45-160-002
of TASK 72-31-45-200-801 in GE GEnx-2B Engine Manual 05-21-00, Life
Limits 001 Mandatory Inspections, Rev. 24 dated, January 31, 2020,
or earlier, and no rejectable indications were found.
    (3) For affected GEnx-1B and GEnx-2B model turbofan engines, you
may take credit for the BSI or ECI required by paragraph (g)(1) of
this AD, if you performed these inspections using GE GEnx-1B Service
Bulletin (SB) 72-0472 R00, dated April 24, 2020, or GE GEnx-2B SB
72-0415 R00, dated April 24, 2020, respectively, and no rejectable
indications were found.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, ECO Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or local Flight Standards District Office, as
appropriate. If sending information directly to the manager of the
certification office, send it to the attention of the person
identified in paragraph (k)(1) of this AD. You may email your
request to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    (1) For more information about this AD, contact Mehdi Lamnyi,
Aerospace Engineer, ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>;
email<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact
General Electric Company, 1 Neumann Way, Cincinnati, OH 45215;
phone:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
website: www.ge.com. You may view this referenced service
information at the FAA, Airworthiness Products Section, Operational
Safety Branch, 1200 District Avenue, Burlington, MA 01803. For
information on the availability of this material at the FAA, call
781-238-7759.

    Issued on September 17, 2020.
Gaetano A. Sciortino,
Deputy Director for Strategic Initiatives, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2020-20947 Filed 9-23-20; 8:45 am]
BILLING CODE 4910-13-P


Comment Info: =================

General Comment:Dear Mr. Zeller:

I am writing as an individual consumer to request an extension of the comment period for the Food and Drug Administration's ("FDA") Proposed Rule Deeming Tobacco Products to be Subject to the Federal Food, Drug, and Cosmetic Act, as amended by the Family Smoking and Prevention and Tobacco Control Act (the "Proposed Rule") published at 79 Fed. Reg. 23,142 and Federal Register No. 2014-09491. On behalf of myself, I am requesting that the comment period for the Proposed Rule be extended by the FDA for an additional 105 days, from its current 75-day period, to 180 days.

The Proposed Rule raises a number of significant issues and questions that are important and relevant to me, as a consumer of products that are proposed for regulation under the Proposed Rule. I would like the opportunity to provide my thoughts and comments on many of these issues. I have indeed spent many hours researching this topic and how it will affect me. However, it is evident that myself and others need much more time in order to compose our thoughts and seek discussion with other in the community.

I would also like to draw you attention to misinformation that has been broadcast by the media who then use FDA’s name as reference. It would serve all those who watch and the FDA itself, to make sure stories about confirmed cancer causing agents (a broad term in itself), toxins, and the use of these products by supposed miners not look like actual FDA statements.

I feel very strongly about e-cigarettes as an alternative to combustible cigarettes. I feel that in time science will prove that they are in fact much safer than combustible tobacco products, and have a higher success rate in moving people off of the harmful products known as cigarettes.

 Whereas the FDA has the authority under 21 CFR 10.40 to extend this time frame and that the FDA has exercised this authority on numerous occasions in the past. I would kindly ask that you do so in this case,  that all stakeholders have the chance to provide their comments and the opportunity to exercise due diligence in researching this proposed regulation.

I appreciate your consideration of my request and am happy to discuss this issue with you further.

Jason Tamplin <EMAIL_ADDRESS>484-938-9550 Texas