[Federal Register Volume 81, Number 122 (Friday, June 24, 2016)]
[Notices]
[Pages 41355-41358]
[FR Doc No: 2016-14928]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78104; File No. SR-BATS-2016-16]

Self-Regulatory Organizations; BATS Exchange, Inc.; Order
Granting Approval of a Proposed Rule Change, as Modified by Amendment
Nos. 1, 2, and 3, To List and Trade Shares of the Pointbreak
Diversified Commodity Strategy Fund of the Pointbreak ETF Trust Under
BATS Rule 14.11(i), Managed Fund Shares

June 20, 2016.

I. Introduction

    On March 7, 2016, BATS Exchange, Inc. (``Exchange'' or ``BATS'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule
change to list and trade shares (``Shares'') of the Pointbreak
Diversified Commodity Strategy Fund (``Fund'') of the Pointbreak ETF
Trust (``Trust'') under BATS Rule 14.11(i). The proposed rule change
was published for comment in the Federal Register on March 22, 2016.\3\
On April 8, 2016, the Exchange filed Amendment No. 1 to the proposed
rule change, and on April 14, 2016, the Exchange filed Amendment No. 2
to the proposed rule change.\4\ On May 5, 2016, pursuant to Section
19(b)(2) of the Act,\5\ the Commission designated a longer period
within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\6\ On June 17, 2016, the Exchange
filed Amendment No. 3 to the proposed rule change.\7\ The Commission
received no comments on the proposed rule change. This order grants
approval of the proposed rule change, as modified by Amendment Nos. 1,
2, and 3.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 77379 (March 16,
2016), 81 FR 15387 (``Notice'').
    \4\ In Amendment No. 1, which replaced the original filing in
its entirety, the Exchange: (1) Changed the name of the Fund from
``Pointbreak Diversified Commodity Fund'' to ``Pointbreak
Diversified Commodity Strategy Fund''; (2) clarified that the Fund
will invest in Commodity Futures through the Subsidiary and invest
in Cash Instruments both directly and through the Subsidiary; (3)
provided additional clarification and specificity regarding the
instruments in which the Fund may invest; (4) provided additional
clarification regarding the investment restrictions of the Fund; (5)
clarified how certain investments will be valued for computing the
Fund's net asset value (``NAV''); (6) clarified where price
information can be obtained for certain investments of the Fund; (7)
clarified that all statements and representations made in the filing
regarding the description of the portfolio, limitations on portfolio
holdings or reference assets, or the applicability of Exchange rules
and surveillance procedures constitute continued listing
requirements for listing the Shares on the Exchange; (8) stated that
the issuer has represented to the Exchange that it will advise the
Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Exchange Act, the Exchange will surveil for
compliance with the continued listing requirements, and if the Fund
is not in compliance with the applicable listing requirements, the
Exchange will commence delisting procedures under Exchange Rule
14.12; and (9) made other technical amendments. Amendment No. 1 is
available at http://www.sec.gov/comments/sr-bats-2016-16/bats201616-1.pdf. In Amendment No. 2, the Exchange clarified where price
information can be obtained for certain investments of the Fund.
Amendment No. 2 is available at http://www.sec.gov/comments/sr-bats-2016-16/bats201616-2.pdf. Because Amendment Nos. 1 and 2 do not
materially alter the substance of the proposed rule change or raise
unique or novel regulatory issues, Amendment Nos. 1 and 2 are not
subject to notice and comment.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 77770, 81 FR 29311
(May 11, 2016). The Commission designated June 20, 2016 as the date
by which the Commission shall either approve or disapprove, or
institute proceedings to determine whether to disapprove, the
proposed rule change.
    \7\ In Amendment No. 3, the Exchange provided additional
information regarding the creation and redemption process, and made
certain technical amendments. Amendment No. 3 is available at
https://www.sec.gov/rules/sro/bats.shtml. Because Amendment No. 3
does not materially alter the substance of the proposed rule change
or raise unique or novel regulatory issues, Amendment No. 3 is not
subject to notice and comment.
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II. The Exchange's Description of the Proposal

    The Exchange proposes to list and trade the Shares under BATS Rule
14.11(i), which governs the listing and trading of Managed Fund Shares
on the Exchange. The Shares will be offered by the Trust. According to
the Exchange, the Trust is registered with the Commission as an open-
end investment company.\8\ Pointbreak Advisers LLC will be the
investment adviser (``Adviser'') \9\ to the Fund.\10\ Brown Brothers
Harriman & Co. will be the administrator, custodian, and transfer agent
for the Trust and ALPS Distributors, Inc. will serve as the distributor
for the Trust.\11\
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    \8\ The Exchange states that the Trust has filed a registration
statement on behalf of the Fund with the Commission. See
Registration Statement on Form N-1A for the Trust, dated December
23, 2015 (File Nos. 333-205324 and 811-23068) (``Registration
Statement''). The Exchange states that the Commission has issued an
order granting certain exemptive relief to the Trust under the
Investment Company Act of 1940 (``1940 Act''). See Investment
Company Act Release No. 32064 (April 4, 2016) (File No. 812-14577).
    \9\ The Exchange states that prior to listing on the Exchange,
the Adviser will be registered as a Commodity Pool Operator and will
become a member of the National Futures Association (``NFA''), and
that the Fund and its Subsidiary will be subject to regulation by
the Commodity Futures Trading Commission and NFA and additional
disclosure, reporting, and recordkeeping rules imposed upon
commodity pools.
    \10\ The Exchange states that the Adviser is not a registered
broker-dealer and is not affiliated with a broker-dealer. In the
event that (a) the Adviser becomes a broker-dealer or newly
affiliated with a broker-dealer, or (b) any new adviser or sub-
adviser is a broker-dealer or becomes affiliated with a broker-
dealer, such adviser or sub-adviser will implement a fire wall with
respect to its relevant personnel or such broker-dealer affiliate,
as applicable, regarding access to information concerning the
composition of 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 the portfolio.
    \11\ Additional information regarding the Trust, the Fund, and
the Shares, including investment strategies, risks, creation and
redemption procedures, fees, portfolio holdings, disclosure
policies, calculation of the NAV, distributions, and taxes, among
other things, can be found in Amendment Nos. 1, 2, and 3, and the
Registration Statement, as applicable. See Amendment Nos. 1 and 2,
supra note 4; Amendment No. 3, supra note 7; and Registration
Statement, supra note 8.

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A. The Fund's Investments

    According to the Exchange, the Fund is an actively managed
exchange-traded fund (``ETF'') that seeks to provide total return that
exceeds that of the Solactive Diversified Commodity Index
(``Benchmark'') over time. The Fund is not an index tracking ETF and is
not required to invest in the specific components of the Benchmark, and
the Fund can have a higher or lower exposure to any component within
the Benchmark at any time and may invest in other commodity-linked
instruments as well. However, the Exchange represents that the Fund
will generally seek to maintain a portfolio of instruments similar to
those included in the Benchmark and will seek exposure to commodities
included in the Benchmark.\12\ The Benchmark is a rules-based index
composed of futures contracts on the following 16 commodities:
Aluminum, Brent crude oil, cocoa, copper, corn, gold, heating oil, live
cattle, natural gas, Reformulated Gasoline Blendstock for Oxygen
Blending gasoline, silver, soybeans, sugar #11, wheat, WTI light crude
oil, and zinc. The Exchange states that the Benchmark will seek to
select the contract month for each specific commodity among the next 13
months that display the most backwardation or the least contango and
will not attempt to always own those contracts that are closest to
expiration.
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    \12\ The Fund will generally obtain its exposure to commodity
markets via investments in a wholly-owned subsidiary organized under
the laws of the Cayman Islands (``Subsidiary''). References to the
investments of the Fund include investments of the Subsidiary to
which the Fund gains indirect exposure.
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    According to the Exchange, under normal circumstances,\13\ the Fund
will invest in Commodity Futures (as defined below) through the
Subsidiary and Cash Instruments (as defined below) both directly
through the Fund and through the Subsidiary. Commodity Futures include
only exchange-traded futures on commodities and exchange-traded futures
contracts on commodity indices. Cash Instruments include only: (i)
Short-term obligations issued by the U.S. Government; (ii) cash and
cash-like instruments; \14\ (iii) money market mutual funds; and (iv)
repurchase agreements.\15\ Cash Instruments would provide liquidity,
serve as margin, or collateralize the Subsidiary's investments in
Commodity Futures. The Fund will not invest in Cash Instruments that
are below investment-grade.
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    \13\ According to the Exchange, the term ``under normal
circumstances'' includes, but is not limited to, the absence of
extreme volatility or trading halts in the 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.
    \14\ Cash-like instruments include only the following: Short-
term negotiable obligations of commercial banks, fixed-time
deposits, bankers acceptances of U.S. banks and similar
institutions, and commercial paper rated at the date of purchase
``Prime-1'' by Moody's Investors Service, Inc. or ``A-1+'' or ``A-
1'' by Standard & Poor's or, if unrated, of comparable quality, as
the Adviser determines.
    \15\ According to the Exchange, the Fund follows certain
procedures designed to minimize the risks inherent in repurchase
agreements. Such procedures include effecting repurchase
transactions only with large, well-capitalized, and well-established
financial institutions whose condition will be continually monitored
by the Adviser. The Exchange represents that it is the current
policy of the Fund not to invest in repurchase agreements that do
not mature within seven days if any such investment, together with
any other illiquid assets held by the Fund, amount to more than 15%
of the Fund's net assets. The Exchange states that the investments
of the Fund in repurchase agreements, at times, may be substantial
when, in the view of the Adviser, liquidity or other considerations
so warrant.
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    The Exchange states that the Fund generally will not invest
directly in Commodity Futures and expects to gain exposure to Commodity
Futures by investing a portion of its assets in the Subsidiary.\16\ The
Fund's investment in the Subsidiary is intended to provide the Fund
with exposure to commodity markets in accordance with applicable rules
and regulations. The Subsidiary has the same investment objective and
investment restrictions as the Fund. The Fund will generally invest up
to 25% of its total assets in the Subsidiary.
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    \16\ The Exchange states that 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,
according to the Exchange, 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 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 Exchange states that 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.
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    The Exchange represents that during times of adverse market,
economic, political, or other conditions, the Fund may depart
temporarily from its principal investment strategies (such as by
maintaining a significant uninvested cash position) for defensive
purposes. The Exchange states that doing so could help the Fund avoid
losses, but may mean lost investment opportunities, and that during
these periods, the Fund may not achieve its investment objective.
    The Fund intends to qualify each year as a regulated investment
company under the Internal Revenue Code.

B. The Fund's Investment Restrictions

    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment) deemed
illiquid by the Adviser \17\ under the 1940 Act. 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 assets. Illiquid assets include assets subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
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    \17\ The Exchange states that, in reaching liquidity decisions,
the Adviser may consider the following factors: The frequency of
trades and quotes for the security; the number of dealers wishing to
purchase or sell the security and the number of other potential
purchasers; dealer undertakings to make a market in the security;
and the nature of the security and the nature of the marketplace in
which it trades (e.g., the time needed to dispose of the security,
the method of soliciting offers, and the mechanics of transfer).
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    Aside from the Fund's investments in the Subsidiary, neither the
Fund nor the Subsidiary will invest in non-U.S. equity securities.
Neither the Fund nor the Subsidiary will invest in derivatives other
than Commodity Futures.
    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to achieve leveraged or
inverse leveraged returns.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Exchange
Act and the rules and regulations thereunder applicable to a national
securities exchange.\18\ In particular, the Commission finds that

the proposed rule change, as modified by Amendment Nos. 1, 2, and 3, is
consistent with Section 6(b)(5) of the Exchange Act,\19\ which
requires, among other things, that the Exchange's rules be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest.
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    \18\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \19\ 15 U.S.C. 78f(b)(5).
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    The Commission also finds that the proposal to list and trade the
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Exchange Act,\20\ which sets forth Congress's finding that it is in
the public interest and appropriate for the protection of investors and
the maintenance of fair and orderly markets to assure the availability
to brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities.
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    \20\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    According to the Exchange, quotation and last sale information for
the Shares will be available on the facilities of the Consolidated Tape
Association (``CTA''), and the previous day's closing price and trading
volume information for the Shares will be generally available daily in
the print and online financial press. Also, daily trading volume
information for the Fund will be available in the financial section of
newspapers, through subscription services such as Bloomberg, Thomson
Reuters, and International Data Corporation, which can be accessed by
authorized participants and other investors, as well as through other
electronic services, including major public Web sites. Additionally,
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.
    In addition, the Intraday Indicative Value \21\ (as defined in BATS
Rule 14.11(i)(3)(C)) will be updated and widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Exchange's Regular Trading Hours.\22\ On each business day, before
commencement of trading in the Shares during Regular Trading Hours on
the Exchange, the Fund will disclose on its Web site the Disclosed
Portfolio (as defined in BATS Rule 14.11(i)(3)(B)) \23\ that will form
the basis for the Fund's calculation of NAV at the end of the business
day.\24\ The Web site for the Fund will also include a form of the
prospectus for the Fund and additional data relating to NAV and other
applicable quantitative information.
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    \21\ According to the Exchange, the Intraday Indicative Value
will be based upon the current value for the components of the
Disclosed Portfolio (as defined below). The Exchange states that
quotations of certain of the Fund's holdings may not be updated for
purposes of calculating Intraday Indicative Value during U.S.
trading hours where the market on which the underlying asset is
traded settles prior to the end of the Exchange's Regular Trading
Hours. The Exchange's Regular Trading Hours are 9:30 a.m. to 4:00
p.m. Eastern Time.
    \22\ The Exchange notes that several major market data vendors
display and/or make widely available Intraday Indicative Values
published via the CTA or other data feeds.
    \23\ The Disclosed Portfolio will include for each portfolio
holding, as applicable: Ticker symbol or other identifier, a
description of the holding, identity of the asset upon which the
derivative is based, the quantity of each security or other asset
held as measured by select metrics, maturity date, coupon rate,
effective date, market value and percentage weight of the holding in
the portfolio. The Web site and information will be publicly
available at no charge.
    \24\ The NAV of the Fund will generally be determined at 4:00
p.m. Eastern Time each business day when the Exchange is open for
trading. The Fund intends to require all creation and redemption
requests to be received no later than 10:30 a.m. Eastern Time
(``cutoff time'') in order to create or redeem Shares based on that
day's NAV. In support of this early cutoff time, the Exchange
represents that the early cutoff time will provide the Fund with
certainty as to whether to buy or sell certain Commodity Futures in
advance of their settlement times, which should help to minimize the
difference between the price used to calculate the NAV and the price
at which the Fund is able to buy or sell the Commodity Futures. The
Exchange also represents that the early cutoff time will provide
authorized participants and market makers with certainty regarding
the prices that will be used for calculating the NAV and that they
will be able to transact at those prices, which should assist
authorized participants and market makers to efficiently hedge their
positions. Moreover, the Exchange represents that the early cutoff
time should not significantly interfere with the arbitrage mechanism
because authorized participants and market makers will continue to
be able to hedge their positions in the Fund by investing directly
in Commodity Futures as trading in these Commodity Futures continues
after the settlement time. Finally, the Exchange represents that
although the authorized participants and market makers that
accumulate positions after the cutoff time may take on risk or
additional costs to the extent they have to hold part or all of
their positions overnight, the risk or additional costs do not
generally interfere with the arbitrage mechanism. See Amendment No.
3, supra note 7.
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    Intraday price quotations on Cash Instruments of the type held by
the Fund, with the exception of money market mutual funds, are
available from major broker-dealer firms and from third-parties, which
may provide prices free with a time delay, or ``live'' with a paid fee.
For Commodity Futures, such intraday pricing information is available
directly from the applicable listing exchange. Price information for
money market mutual funds will be available from the applicable
investment company's Web site.
    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Exchange will obtain a representation from the issuer of
the Shares that the NAV will be calculated daily and that the NAV and
the Disclosed Portfolio will be made available to all market
participants at the same time. Further, trading in the Shares will be
subject to BATS Rules 11.18 and 14.11(i)(4)(B)(iv), which set forth
circumstances under which trading in Shares of the Fund may be halted.
Trading 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 Commodity Futures and other assets composing 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. The Reporting Authority that provides the Disclosed
Portfolio must implement and maintain, or be subject to, procedures
designed to prevent the use and dissemination of material, non-public
information regarding the actual components of the portfolio.\25\ The
Exchange represents that it prohibits the distribution of material,
non-public information by its employees. The Exchange states that the
Adviser is not a registered broker-dealer and is not affiliated with a
broker-dealer, and that in the event that (a) the Adviser becomes a
broker-dealer or newly affiliated with a broker-dealer, or (b) any new
adviser or sub-adviser is a broker-dealer or becomes affiliated with a
broker-dealer, such adviser or sub-adviser will implement a fire wall
with respect to its relevant personnel or such broker-dealer affiliate,
as applicable, regarding access to information concerning the
composition of 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.\26\
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    \25\ See BATS Rule 14.11(i)(4)(B)(ii)(b).
    \26\ The Exchange represents that an investment adviser to an
open-end fund is required to be registered under the Investment
Advisers Act of 1940.
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    Prior to the commencement of trading, the Exchange will inform its

members in an Information Circular of the special characteristics and
risks associated with trading the Shares. The Exchange represents that
trading of the Shares through the Exchange will be subject to the
Exchange's surveillance procedures for derivative products, including
Managed Fund Shares, and such surveillance procedures are adequate to
properly monitor the trading of the Shares on the Exchange during all
trading sessions and to deter and detect violations of Exchange rules
and the applicable federal securities laws.
    The Exchange represents that it 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.
In support of this proposal, the Exchange has made the following
representations:
    (1) The Shares will be subject to BATS Rule 14.11(i), which sets
forth the initial and continued listing criteria applicable to Managed
Fund Shares.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) The Exchange may obtain information regarding trading in the
Shares and the underlying futures, including futures contracts held by
the Subsidiary, via the Intermarket Surveillance Group (``ISG'') from
other exchanges who are members or affiliates of the ISG or with which
the Exchange has entered into a comprehensive surveillance sharing
agreement. In addition, the Exchange is able to access, as needed,
trade information for certain fixed income instruments reported to
FINRA's Trade Reporting and Compliance Engine.
    (4) All of the futures contracts in the Disclosed Portfolio for the
Fund (including those held by the Subsidiary) will trade on markets
that are a member or affiliate of ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement.
    (5) Prior to the commencement of trading, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Circular will discuss the following: (a) The procedures for
purchases and redemptions of Shares in creation units (and that Shares
are not individually redeemable); (b) BATS Rule 3.7, which imposes
suitability obligations on Exchange members with respect to
recommending transactions in the Shares to customers; (c) how
information regarding the Intraday Indicative Value and Disclosed
Portfolio are disseminated; (d) the risks involved in trading the
Shares during the Pre-Opening and After Hours Trading Sessions (as
defined in the Exchange's rules) when an updated Intraday Indicative
Value will not be calculated or publicly disseminated; (e) the
requirement that members deliver a prospectus to investors purchasing
newly issued Shares prior to or concurrently with the confirmation of a
transaction; and (f) trading information.
    (6) For initial and continued listing, the Fund must be in
compliance with Rule 10A-3 under the Exchange Act.\27\
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    \27\ See 17 CFR 240.10A-3.
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    (7) Aside from the Fund's investments in the Subsidiary, neither
the Fund nor the Subsidiary will invest in non-U.S. equity securities.
    (8) Neither the Fund nor the Subsidiary will invest in derivatives
other than Commodity Futures.
    (9) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment) deemed
illiquid by the Adviser under the 1940 Act. 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 assets.
    (10) The Fund's investments will be consistent with the Fund's
investment objective and will not be used to achieve leveraged or
inverse leveraged returns.
    (11) A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange.
    The Exchange represents that all statements and representations
made in the filing regarding (a) the description of the portfolio, (b)
limitations on portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance procedures constitute
continued listing requirements for listing the Shares on the Exchange.
In addition, the issuer has represented to the Exchange that it will
advise the Exchange of any failure by the Fund to comply with the
continued listing requirements, and, pursuant to its obligations under
Section 19(g)(1) of the Exchange Act, the Exchange will surveil for
compliance with the continued listing requirements. If the Fund is not
in compliance with the applicable listing requirements, the Exchange
will commence delisting procedures under Exchange Rule 14.12.
    This approval order is based on all of the Exchange's
representations, including those set forth above and in Amendment Nos.
1, 2, and 3. The Commission notes that the Fund and the Shares must
comply with the requirements of BATS Rule 14.11(i) to be initially and
continuously listed and traded on the Exchange.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment Nos. 1, 2, and 3, is consistent
with Section 6(b)(5) of the Exchange Act \28\ and Section
11A(a)(1)(C)(iii) of the Exchange Act \29\ and the rules and
regulations thereunder applicable to a national securities exchange.
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    \28\ 15 U.S.C. 78f(b)(5).
    \29\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\30\ that the proposed rule change (SR-BATS-2016-16), as
modified by Amendment Nos. 1, 2, and 3, be, and it hereby is, approved.
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    \30\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-14928 Filed 6-23-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: December 16, 2008 (Volume 73, Number 242)]
[Notices]
[Page 76437-76439]
[DOCID:fr16de08-104]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Passenger Facility Charge (PFC) Approvals and
Disapprovals

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Monthly Notice of PFC Approvals and Disapprovals. In November
2008, there were six applications approved. This notice also includes
information on four applications, one approved in May 2008 and the
other three approved in October 2008, inadvertently left off the May
2008 and October 2008 notices, respectively. Additionally, 10 approved
amendments to previously approved applications are listed.

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SUMMARY: The FAA publishes a monthly notice, as appropriate, of PFC
approvals and disapprovals under the provisions of the Aviation Safety
and Capacity Expansion Act of 1990 (Title IX of the Omnibus Budget
Reconciliation Act of 1990) (Pub. L. 101-508) and Part 158 of the
Federal Aviation Regulations (14 CFR Part 158). This notice is
published pursuant to paragraph d of Sec.  158.29.

PFC Applications Approved

    Public Agency: Grand Forks Regional Airport Authority, Grand Forks,
North Dakota.
    Application Number: 08-07-C-00-GFK.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $362,368.
    Earliest Charge Effective Date: January 1, 2009.
    Estimated Charge Expiration Date: February 1, 2010.
    Class of Air Carriers Not Required To Collect PFCs: None.
    Brief Description of Projects Approved for Collection and Use:
Purchase land for runway protection zone.
    Construct east/west runway.
    Decision Date: May 28, 2008.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer, Bismarck Airports
District Office,<PHONE_NUMBER>.
    Public Agency: City of Valdosta, Georgia.
    Application Number: 08-09-C-00-VLD.
    Application Type: Impose and use a PFC.
    PFC Level: $3.00.
    Total PFC Revenue Approved in This Decision: $30,300.
    Earliest Charge Effective Date: August 1, 2009.
    Estimated Charge Expiration Date: December 1, 2009.
    Class of Air Carriers Not Required To Collect PFCs: None.
    Brief Description of Projects Approved for Collection and Use:
    Rehabilitate airfield lighting/signs phase I (design).
    Rehabilitate airfield lighting/signs phase II (construction).
    Airfield drainage rehabilitation.
    PFC application development.
    Brief Description of Withdrawn Projects:
    Expand commercial ramp.
    Design new air traffic control tower.
    Build new air traffic control tower.
    Demolition and removal of old pavements.
    Date of Withdrawal: October 27, 2008.
    Decision Date: October 29, 2008.

FOR FURTHER INFORMATION CONTACT: Anna Guss, Atlanta Airports District
Office,<PHONE_NUMBER>.
    Public Agency: City of Cody, Wyoming.
    Application Number: 08-06-C-00-COD.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $79,500.
    Earliest Charge Effective Date: February 1, 2011.
    Estimated Charge Expiration Date: January 1, 2013.
    Class of Air Carriers Not Required To Collect PFCs: On-demand, non-
scheduled air taxi/commercial operators.
    Determination: Approved. Based on information contained in the
public agency's application, the FAA has determined that the approved
class accounts for less than 1 percent of the total annual enplanements
at Yellowstone Regional Airport.
    Brief Description of Projects Approved for Collection and Use:
    Taxiway B rehabilitation.
    Security plan.
    Gate relocation.
    Acquire snow plow blade.
    Brief Description of Withdrawn Projects:
    Vehicle purchase. Airport radios.
    Security upgrades.
    Replace aircraft rescue and firefighting equipment.
    Expand aircraft rescue and firefighting building.
    Acquire snow removal equipment.
    Overlay taxiway A.
    Date of Withdrawal: October 23, 2008.
    Decision Date: October 29, 2008.

FOR FURTHER INFORMATION CONTACT: Chris Schaffer, Denver Airports
District Office,<PHONE_NUMBER>.
    Public Agency: County of Humboldt, Eureka, California.
    Application Number: 08-09-C-00-ACV.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $926,450.
    Earliest Charge Effective Date: March 1, 2009.
    Estimated Charge Expiration Date: May 1, 2011.
    Class of Air Carriers Not Required To Collect PFCs: Non-scheduled,
on demand air carriers filing FAA Form 1800-31.
    Determination: Approved. Based on information contained in the
public agency's application, the FAA has determined that the approved
class accounts for less than 1 percent of the total annual enplanements
at Arcata Airport (ACV).
    Brief Description of Projects Approved for Collection at ACV and
Use at ACV:
    Terminal improvements.
    Install/upgrade airfield guidance signs.
    Runway safety area enhancements, design.
    Rehabilitate runway lighting, design.
    Construct aircraft rescue and firefighting building, design.
    PFC administration costs.
    Brief Description of Project Approved for Collection at ACV and Use
at Garberville Airport (016): Rehabilitate/expand apron, design.
    Brief Description of Project Approved for Collection at ACV and Use
at Rohnerville Airport (FOT): Rehabilitate apron, design.
    Brief Description of Project Approved for Collection at ACV (For
and Future Use at 016): Install automated weather observing system.
    Brief Description of Projects Approved for Collection at ACV (For
Future Use at Murray Field): Install automated weather observing
system. Install perimeter fencing.

    Brief Description of Project Approved for Collection at ACV (For
Future Use at FOT): Install automated weather observing system.
    Brief Description of Project Approved for Collection at ACV (For
Future Use at Kneeland Airport): Erosion control/stabilization, design.
    Decision Date: October 30, 2008.

FOR FURTHER INFORMATION CONTACT: Ron Biaoco, San Francisco Airports
District Office,<PHONE_NUMBER>, extension 626.
    Public Agency: Parish of East Baton Rouge, City of Baton Rouge,
Louisiana.
    Application Number: 09-07-C-00-BTR.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $25,627,674.
    Earliest Charge Effective Date: March 1, 2024.
    Estimated Charge Expiration Date: July 1, 2031.
    Class of Air Carriers Not Required To Collect PFCs: Part 135 on-
demand air taxi/commercial operators.
    Determination: Approved. Based on information contained in the
public agency's application, the FAA has determined that the approved
class accounts for less than 1 percent of the total annual enplanements
at Baton Rouge Metropolitan Airport.
    Brief Description of Projects Approved for Collection and Use:
    Terminal atrium expansion.
    Acquisition of property for development.
    Taxiway fillet construction.
    Ticket lobby expansion.
    Decision Date: November 12, 2008.

FOR FURTHER INFORMATION CONTACT: Ilia Quinones, Louisiana/New Mexico
Airports Development Office,<PHONE_NUMBER>.
    Public Agency: County of San Diego, El Cajon, California.
    Application Number: 09-01-C-00-CRQ.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $4,947,065.
    Earliest Charge Effective Date: January 1, 2009.
    Estimated Charge Expiration Date: February 1, 2043.
    Class of Air Carriers Not Required to Collect PFCs: Nonscheduled/
on-demand air carriers, filing FAA Form 1800-31.
    Determination: Approved. Based on information contained in the
public agency's application, the FAA has determined that the approved
class accounts for less than 1 percent of the total annual enplanements
at McClellan-Palomar Airport.
    Brief Description of Projects Approved for Collection and Use:
    Construct taxiway C.
    Construct terminal apron.
    Enhance runway safety area and infield drainage.
    Construct blast fence.
    Construct access road.
    Enhance airport security system.
    Construct passenger movement facility (elevators and bridge).
    Design and construct terminal building.
    Acquire aircraft rescue and firefighting vehicle.
    PFC administrative costs.
    Decision Date: November 24, 2008.

FOR FURTHER INFORMATION CONTACT: Darlene Williams, Los Angeles Airports
District Office,<PHONE_NUMBER>.
    Public Agency: City of Saint Louis Airport Authority, Saint Louis,
Missouri.
    Application Number: 08-09-C-00-STL.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $783,625,492.
    Charge Effective Date: May 1, 2002.
    Estimated Charge Expiration Date: February 1, 2022.
    Class of Air Carriers Not Required to Collect PFCs: Air taxi/
commercial operators filing FAA Form 1800-31.
    Determination: Approved. Based on information contained in the
public agency's application, the FAA has determined that the approved
class accounts for less than 1 percent of the total annual enplanements
at Lambert-St. Louis International Airport.
    Brief Description of Projects Approved for Collection and Use at a
$3.00 PFC Level:
    Terminal improvement program.
    Emergency generators.
    Runways 12R/30L and 12L130R centerline panels.
    Taxiway reconstruction (D and S).
    Relocation of McDonnell Boulevard, phases I and II.
    Part 150 study.
    Master plan update--phase II.
    Perimeter security fence.
    Expansion of 800 Mhz radio system.
    Noise monitoring system upgrade.
    Terminal improvements (Federal Inspection Services).
    Brief Description of Project Approved for Collection at a $3.00 PFC
Level: Taxiway reconstruction (F and V).
    Brief Description of Projects Approved for Collection and Use at a
$4.50 PFC Level: Balance of real property acquisition for airport
expansion projects. Carrolton Schools replacement facility.
    Program management (includes program management/airport development
program consultant fees).
    Site development and roadway infrastructure.
    New runway.
    New Runway: Taxiways.
    New Runway: Perimeter Road.
    New Runway: Security Fences.
    New west aircraft rescue and firefighting building.
    Taxiway Delta improvements.
    Decision Date: November 24, 2008.

FOR FURTHER INFORMATION CONTACT: Mark Schenkelberg, Central Region
Airports Division,<PHONE_NUMBER>.
    Public Agency: County of Routt, Hayden, Colorado.
    Application Number: 09-08-C-00-HDN.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $1,691,312.
    Earliest Charge Effective Date: August 1, 2012.
    Estimated Charge Expiration Date: September 1, 2015.
    Class of Air Carriers Not Required To Collect PFCs: None.
    Brief Description of Projects Approved for Collection and Use:
    Acquire aircraft rescue and firefighting truck.
    Taxiway A rehabilitation.
    Master plan update.
    Snow removal equipment building.
    Emergency generator.
    Fingerprint equipment.
    PFC application and administrative fees.
    Snow removal equipment.
    Decision Date: November 25, 2008.

FOR FURTHER INFORMATION CONTACT: Chris Schaffer, Denver Airports
District Office,<PHONE_NUMBER>.
    Public Agency: County of Clinton, Plattsburgh, New York.
    Application Number: 09-01-C-00-PBG.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $732,355.
    Earliest Charge Effective Date: January 1, 2009.
    Estimated Charge Expiration Date: December 1, 2012.
    Class of Air Carriers Not Required to Collect PFCs: None.
    Brief Description of Projects Approved for Collection and Use:
    Relocate runway lighting, remarking, and airfield signage.

    Runway 17/35 rehabilitation.
    Taxiway lighting and marking.
    Passenger terminal building.
    Perimeter fencing.
    Runway 17/35 navigational aids.
    Acquire aircraft rescue and firefighting vehicle.
    PFC application.
    Decision Date: November 25, 2008.

FOR FURTHER INFORMATION CONTACT: Andrew Brooks, New York Airports
District Office,<PHONE_NUMBER>.
    Public Agency: County of Campbell/Gillette-Campbell County Airport
Board, Gillette, Wyoming.
    Application Number: 09-07-C-00-GCC.
    Application Type: Impose and use a PFC.
    PFC Level: $4.50.
    Total PFC Revenue Approved in This Decision: $433,172.
    Earliest Charge Effective Date: March 1, 2010.
    Estimated Charge Expiration Date: July 1, 2014.
    Class of Air Carriers Not Required to Collect PFCs: None.
    Brief Description of Projects Approved for Collection and Use:
    Rehabilitate pavement markings.
    Rehabilitate airfield signs.
    Remodel terminal security screening area.
    Rehabilitate south general aviation apron.
    PFC administration.
    Decision Date: November 25, 2008.

FOR FURTHER INFORMATION CONTACT: Chris Schaffer, Denver Airports
District Office,<PHONE_NUMBER>.
    Amendment to PFC Approvals:

----------------------------------------------------------------------------------------------------------------
                                                                                Original         Amended
                                     Amendment       Original         Amended        estimated       estimated
   Amendment No., city, state      approved date   approved net    approved net     charge exp.     charge exp.
                                                    PFC revenue     PFC revenue        date            date
----------------------------------------------------------------------------------------------------------------
00-07-C-03-MDW Chicago, IL......        10/29/08    $795,708,154    $807,154,315        04/01/34        04/01/34
02-09-C-02-MDW Chicago, IL......        10/29/08     181,326,845     187,374,819        08/01/38        08/01/38
06-11-C-01-MDW Chicago, IL......        10/29/08       1,300,000               0        09/01/38        09/01/38
02-06-C-06-MSY New Orleans, LA..        10/31/08     255,936,769     276,286,494        09/01/16        12/01/17
96-05-C-05-MDW Chicago, IL......        11/03/08     178,087,493     180,380,371        11/01/16        11/01/16
05-07-C-02-FLL Fort Lauderdale,         11/05/08     146,549,617     110,428,401        11/01/08        11/01/08
 FL.............................
06-11-C-01-MHT Manchester, NH*..        11/12/08      17,257,727      24,553,090        12/01/22        12/01/22
07-12-U-01-MHT Manchester, NH...        11/12/08              NA              NA        12/01/22        12/01/22
06-07-C-02-BUR Burbank, CA......        11/14/08      26,793,195      27,193,195        09/01/12        04/01/13
04-07-C-02-CMH Columbus, OH.....        11/14/08      80,836,858      77,072,441        02/01/10        10/01/09
----------------------------------------------------------------------------------------------------------------
Notes: The amendment denoted by an asterisk (*) includes a change to the PFC level charged from $3.00 per
  enplaned passenger to $4.50 per enplaned passenger. For Manchester, NH this change is effective on January 1,
  2021.

    Issued in Washington, DC on December 5, 2008.
Joe Hebert,
Manager, Financial Analysis and Passenger Facility Charge Branch.
 [FR Doc. E8-29522 Filed 12-15-08; 8:45 am]

BILLING CODE 4910-13-M


[Federal Register Volume 88, Number 241 (Monday, December 18, 2023)]
[Rules and Regulations]
[Pages 87331-87334]
[FR Doc No: 2023-27680]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2023-1496; Project Identifier MCAI-2022-01059-T;
Amendment 39-22619; AD 2023-24-03]
RIN 2120-AA64

Airworthiness Directives; MHI RJ Aviation ULC (Type Certificate
Previously Held by Bombardier, Inc.) Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for all
MHI RJ Aviation ULC Model CL-600-2B19 (Regional Jet Series 100 & 440);
CL-600-2C10 (Regional Jet Series 700, 701, & 702); CL-600-2C11
(Regional Jet Series 550); CL-600-2D15 (Regional Jet Series 705); CL-
600-2D24 (Regional Jet Series 900); and CL-600-2E25 (Regional Jet
Series 1000) airplanes. This AD was prompted by a determination that
aircraft maintenance manual (AMM) tasks and certification maintenance
requirement (CMR) tasks are necessary. This AD requires revising the
existing maintenance or inspection program, as applicable, to
incorporate new or more restrictive AMM and CMR tasks. The FAA is
issuing this AD to address the unsafe condition on these products.

DATES: This AD is effective January 22, 2024.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of January 22,
2024.

ADDRESSES:
    AD Docket: You may examine the AD docket at regulations.gov under
Docket No. FAA-2023-1496; 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 final rule, the mandatory continuing airworthiness
information (MCAI), any comments received, and other information. The
address for Docket Operations is U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE, Washington, DC 20590.
    Material Incorporated by Reference:
     For service information identified in this final rule,
contact MHI RJ Aviation Group, Customer Response Center, 3655 Ave. des
Grandes-Tourelles, Suite 110, Boisbriand, Qu[eacute]bec J7H 0E2 Canada;
North America toll-free telephone<PHONE_NUMBER> or direct-dial telephone
450-990-7272; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>website
mhirj.com.
     You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>. It is also available at
regulations.gov under Docket No. FAA-2023-1496.

FOR FURTHER INFORMATION CONTACT: Elizabeth Dowling, Aviation Safety
Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590;
telephone<PHONE_NUMBER>; email [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 by adding an AD that would apply to all MHI RJ Aviation ULC
Model CL-600-2B19 (Regional Jet Series 100 & 440); CL-600-2C10
(Regional Jet Series 700, 701, & 702); CL-600-2C11 (Regional Jet Series
550); CL-600-2D15 (Regional Jet Series 705); CL-600-2D24 (Regional Jet
Series 900); and CL-600-2E25 (Regional Jet Series 1000) airplanes. The
NPRM published in the Federal Register on July 19, 2023 (88 FR 46118).
The NPRM was prompted by AD CF-2022-42, dated August 8, 2022, issued by
Transport Canada, which is the aviation authority for Canada (referred
to after this as the MCAI). The MCAI states that operators have
reported frequent flight interruptions and high lavatory smoke detector
removal rates due to the frequent testing of the smoke detector self-
test switch by the flight crew using unsuitable objects. The MCAI also
states there is a potential dormant failure of the lavatory smoke
detector if the self-test switch check is not performed in accordance
with revised procedures.
    In the NPRM, the FAA proposed to require revising the existing
maintenance or inspection program, as applicable, to incorporate new or
more restrictive AMM and CMR tasks. The FAA is issuing this AD to
address a potential dormant failure of the lavatory smoke detector if
the self-test switch check is not performed in accordance with revised
AMM or CMR tasks. If these maintenance task changes are not
implemented, and in combination with a fire in the lavatory, this may
lead to a delay in the reaction time to address smoke/fire in the
lavatory.
    You may examine the MCAI in the AD docket at regulations.gov under
Docket No. FAA-2023-1496.

Discussion of Final Airworthiness Directive

Comments

    The FAA received a comment from Air Line Pilots Association,
International, who supported the NPRM without change.
    The FAA received an additional comment from MHI RJ Aviation. The
following presents the comment received on the NPRM and the FAA's
response.

Request To Identify Corrected Revisions

    MHI RJ requested that the corrected revisions for Aircraft
Maintenance Manual (AMM) Tasks 26-16-00-710-804-A01 and 26-16-00-710-
803-A01 be identified as found in AMM CSP B-001, Revision 71. The
commenter stated that the Maintenance Task Card Manual (MTCM) Task Card
updates were also implemented in AMM Tasks 26-16-00-710-804-A01 and 26-
16-00-710-803-A01, but references to the AMM tasks in the proposed AD
do not indicate the corrected revision.
    The FAA agrees with the requested change since it provides a means
for operators to ensure the revised maintenance tasks are included in
the AMM revision they are using. Therefore, figure 1 to paragraph (h)
of this AD has been changed to specify AMM Rev 68 or later approved
revisions.

Conclusion

    This product has been approved by the aviation authority of another
country and is approved for operation in the United States. Pursuant to
the FAA's bilateral agreement with this State of Design Authority, it
has notified the FAA of the unsafe condition described in the MCAI
referenced above. The FAA reviewed the relevant data, considered the
comment received, and determined that air safety requires adopting this
AD as proposed. Accordingly, the FAA is issuing this AD to address the
unsafe condition on this product. Except for minor editorial changes,
this AD is adopted as proposed in the NPRM. None of the changes will
increase the economic burden on any operator.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Bombardier Temporary Revision 2A-75, dated May 28,
2020. This service information specifies new or more restrictive CMR
tasks. 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.

Costs of Compliance

    The FAA estimates that this AD affects 1,024 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:
    The FAA has determined that revising the maintenance or inspection
program takes an average of 90 work-hours per operator, although the
agency recognizes that this number may vary from operator to operator.
Since operators incorporate maintenance or inspection program changes
for their affected fleet(s), the FAA has determined that a per-operator
estimate is more accurate than a per-airplane estimate. Therefore, the
agency estimates the average total cost per operator to be $7,650 (90
work-hours x $85 per work-hour).

Authority for This Rulemaking

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

Regulatory Findings

    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) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The 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:

2023-24-03 MHI RJ Aviation ULC (Type Certificate Previously Held by
Bombardier, Inc.): Amendment 39-22619; Docket No. FAA-2023-1496;
Project Identifier MCAI-2022-01059-T.

(a) Effective Date

    This airworthiness directive (AD) is effective January 22, 2024.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all MHI RJ Aviation ULC (Type Certificate
previously held by Bombardier, Inc.) airplanes identified in
paragraphs (c)(1) through (6) of this AD, certificated in any
category.
    (1) Model CL-600-2B19 (Regional Jet Series 100 & 440) airplanes.
    (2) Model CL-600-2C10 (Regional Jet Series 700, 701, & 702)
airplanes.
    (3) Model CL-600-2C11 (Regional Jet Series 550) airplanes.
    (4) Model CL-600-2D15 (Regional Jet Series 705) airplanes.
    (5) Model CL-600-2D24 (Regional Jet Series 900) airplanes.
    (6) Model CL-600-2E25 (Regional Jet Series 1000) airplanes.

(d) Subject

    Air Transport Association (ATA) of America Code 26, Fire
Protection.

(e) Reason

    This AD was prompted by a determination that new or more
restrictive aircraft maintenance manual (AMM) tasks and
certification maintenance requirement (CMR) tasks are necessary. The
FAA is issuing this AD to address a potential dormant failure of the
lavatory smoke detector if the self-test switch check is not
performed in accordance with the revised AMM or CMR tasks. If these
maintenance task changes are not implemented, and in combination
with a fire in the lavatory, this may lead to a delay in the
reaction time to address smoke/fire in the lavatory.

(f) Compliance

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

(g) Maintenance or Inspection Program Revision for Model CL-600-2B19
(Regional Jet Series 100 & 440) Airplanes

    For Model CL-600-2B19 (Regional Jet Series 100 & 440) airplanes:
Within 60 days after the effective date of this AD, revise the
existing maintenance or inspection program, as applicable, to
incorporate the information specified in Bombardier Temporary
Revision 2A-75, dated May 28, 2020. The initial compliance time is
within 12 months after the effective date of this AD.

(h) Maintenance or Inspection Program Revision for Other Airplanes

    For airplanes identified in paragraphs (c)(2) through (6) of
this AD: Within 60 days after the effective date of this AD, revise
the existing maintenance or inspection program, as applicable, to
incorporate the information specified in Figure 1 to paragraph (h)
of this AD. The initial compliance time for doing the tasks is
within 12 months after the effective date of this AD.

Figure 1 to Paragraph (h)--AMM task for an operational check of the
lavatory smoke detector (forward and aft)
[GRAPHIC] [TIFF OMITTED] TR18DE23.016

(i) No Alternative Actions or Intervals

    After the existing maintenance or inspection program has been
revised as required by paragraph (g) or (h) of this AD, no
alternative actions (e.g., inspections) or intervals may be used
unless the actions, and intervals are approved as an alternative
method of compliance (AMOC) in accordance with the procedures
specified in paragraph (j)(1) of this AD.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Validation Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or responsible Flight Standards Office, as
appropriate. If sending information directly to the manager of the
certification office, send it to ATTN: Program Manager, Continuing
Operational Safety, FAA, International Validation Branch, 1600
Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-228-
7300. Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, International
Validation Branch, FAA; or Transport Canada; or MHI RJ Aviation
ULC's Transport Canada Design Approval Organization (DAO). If
approved by the DAO, the approval must include the DAO-authorized
signature.

(k) Additional Information

    (1) Refer to Transport Canada AD CF-2022-42, dated August 8,
2022, for related information. This Transport Canada AD may be found
in the AD docket at regulations.gov under Docket No. FAA-2023-1496.
    (2) For more information about this AD, contact Elizabeth
Dowling, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite
410, Westbury, NY 11590; telephone<PHONE_NUMBER>; email [email protected].

(l) 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 to do the actions
required by this AD, unless this AD specifies otherwise.
    (i) Bombardier Temporary Revision 2A-75, dated May 28, 2020.
    (ii) [Reserved]
    (3) For service information identified in this AD, contact MHI
RJ Aviation Group, Customer Response Center, 3655 Ave. des Grandes-
Tourelles, Suite 110, Boisbriand, Qu[eacute]bec J7H 0E2 Canada;
North America toll-free telephone<PHONE_NUMBER> or direct-dial
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
website mhirj.com.
    (4) You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this material at the National Archives and
Records Administration (NARA). For information on the availability
of this material at NARA, visit: www.archives.gov/federal-register/cfr/ibr-locations or email [email protected].

    Issued on November 29, 2023.
Victor Wicklund,
Deputy Director, Compliance & Airworthiness Division, Aircraft
Certification Service.
[FR Doc. 2023-27680 Filed 12-15-23; 8:45 am]
BILLING CODE 4910-13-P