[Federal Register: December 19, 2007 (Volume 72, Number 243)]
[Rules and Regulations]
[Page 71768-71769]
[DOCID:fr19de07-14]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2007-29012; Airspace Docket No. 07-AAL-15]

Revision of Class E Airspace; McGrath, AK

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action revises Class E airspace at McGrath, AK to provide
adequate controlled airspace to contain aircraft executing Standard
Instrument Approach Procedures (SIAPs). Five SIAPs and a textual
departure procedure (DP) are being amended for the McGrath Airport.
Additionally, one SIAP is being developed. This action revises existing
Class E airspace upward from 700 feet (ft.) and 1,200 ft. above the
surface at the McGrath Airport, McGrath, AK.

DATES: Effective Date: 0901 UTC, February 14, 2008. The Director of the
Federal Register approves this incorporation by reference action under
title 1, Code of Federal Regulations, part 51, subject to the annual
revision of FAA Order 7400.9 and publication of conforming amendments.

FOR FURTHER INFORMATION CONTACT: Gary Rolf, AAL-538G, Federal Aviation
Administration, 222 West 7th Avenue, Box 14, Anchorage, AK 99513-7587;
telephone number<PHONE_NUMBER>; fax:<PHONE_NUMBER>; e-mail:
<EMAIL_ADDRESS>Internet address: http://www.alaska.faa.gov/at.

SUPPLEMENTARY INFORMATION:

History

    On Tuesday, October 16, 2007, the FAA proposed to amend part 71 of
the Federal Aviation Regulations (14 CFR part 71) to revise Class E
airspace upward from 700 ft. above the surface and from 1,200 ft. above
the surface at McGrath, AK (72 FR 58569). The action was proposed in
order to create Class E airspace sufficient in size to contain aircraft
while executing SIAPs for the McGrath Airport. Class E controlled
airspace extending upward from 700 ft. above the surface and from 1,200
ft. above the surface in the McGrath Airport area is revised by this
action.
    Interested parties were invited to participate in this rulemaking
proceeding by submitting written comments on the proposal to the FAA.
No comments were received. The rule is adopted as proposed.
    The area will be depicted on aeronautical charts for pilot
reference. The coordinates for this airspace docket are based on North
American Datum 83. The Class E airspace areas designated as surface
areas are published in paragraph 6002 of FAA Order 7400.9R, Airspace
Designations and Reporting Points, signed August 15, 2007, and
effective September 15, 2007, which is incorporated by reference in 14
CFR 71.1. The Class E airspace areas designated as 700/1,200 ft.
transition areas are published in paragraph 6005 of FAA Order 7400.9R,
Airspace Designations and Reporting Points, signed August 15, 2007, and
effective September 15, 2007, which is incorporated by reference in 14
CFR 71.1. The Class E airspace designations listed in this document
will be published subsequently in the Order.

The Rule

    This amendment to 14 CFR part 71 revises Class E airspace at the
McGrath Airport, Alaska. This Class E airspace is revised to
accommodate aircraft executing new and amended SIAPs, and will be
depicted on aeronautical charts for pilot reference. The intended
effect of this rule is to provide adequate controlled airspace for
Instrument Flight Rules (IFR) operations at the McGrath Airport,
McGrath, Alaska.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule will not have a significant economic impact on
a substantial number of small entities under the criteria of the
Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle 1, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart 1, Section 40103, Sovereignty and use of
airspace. Under that section, the FAA is charged with prescribing
regulations to ensure the safe and efficient use of the navigable
airspace. This regulation is within the scope of that authority because
it creates Class E airspace sufficient in size to contain aircraft
executing instrument procedures for the McGrath Airport and represents
the FAA's continuing effort to safely and efficiently use the navigable
airspace.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

0
In consideration of the foregoing, the Federal Aviation Administration
amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, CLASS B, CLASS C, CLASS D, AND
CLASS E AIRSPACE AREAS; AIRWAYS; ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.9R, Airspace Designations and Reporting
Points, signed August 15, 2007, and effective September 15, 2007, is
amended as follows:
* * * * *

Paragraph 6002 Class E Airspace Designated as Surface Areas.

AAL AK E2 McGrath, AK [Revised]

McGrath, McGrath Airport, AK
    (Lat. 62[deg]57'10'' N., long. 155[deg]36'20'' W.)

    That airspace within a 7.6-mile radius of the McGrath Airport.
This Class E airspace area is effective during the specific dates
and times established in advance by a Notice to Airmen. The
effective date and time will thereafter be continuously published in
the Airport/Facility Directory.
* * * * *

Paragraph 6005 Class E Airspace Extending Upward from 700 feet or
More Above the Surface of the Earth.

* * * * *

AAL AK E5 McGrath, AK [Revised]

McGrath, McGrath Airport, AK
    (Lat. 62[deg]57'10'' N., long. 155[deg]36'20'' W.)

    That airspace extending upward from 700 feet above the surface
within a 8.1-mile radius of the McGrath Airport and within 4 miles
north and 8 miles south of the 123[deg] bearing from the McGrath
Airport, AK extending from the 8.1-mile radius to 16 miles southeast
of the McGrath Airport, AK, and within 4 miles east and west of the
008[deg] bearing from the McGrath Airport, AK, extending from the
8.1-mile radius to 11.2 miles north of the McGrath Airport, AK; and
that airspace extending upward from 1,200 feet above the surface
within a 74-mile radius of the McGrath Airport.
* * * * *

    Issued in Anchorage, AK, on December 11, 2007.
Anthony M. Wylie,
Manager, Alaska Flight Services Information Area Group.
 [FR Doc. E7-24410 Filed 12-18-07; 8:45 am]

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[Federal Register Volume 84, Number 191 (Wednesday, October 2, 2019)]
[Notices]
[Pages 52582-52583]
[FR Doc No: 2019-21449]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. FAA-2019-55]

Petition for Exemption; Summary of Petition Received; U.S.
Aviation Academy

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice.

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SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Federal Aviation Regulations. The
purpose of this notice is to improve the public's awareness of, and
participation in, the FAA's exemption process. Neither publication of
this notice nor the inclusion or omission of information in the summary
is intended to affect the legal status of the petition or its final
disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before October 22, 2019.

ADDRESSES: Send comments identified by docket number FAA-2019-0626
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140,
West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays.

     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to http://www.regulations.gov. as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
http://www.dot.gov/privacv.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE,
Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Alphonso Pendergrass<PHONE_NUMBER>,
Office of Rulemaking, Federal Aviation Administration, 800 Independence
Avenue SW, Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on September 24, 2019.
Forest Rawls III,
Acting Deputy Executive Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2019-0626.
    Petitioner: U.S. Aviation Academy.
    Section(s) of 14 CFR Affected: Sec.  141.37(b)(2).
    Description of Relief Sought: To allow the U.S. Aviation Academy to
create an FAA Part 141 special curriculum for check instructors which
includes pre-requisites exceeding 141.37. Certified flight instructors
who graduate this FAA-approved check instructor course would be
automatically approved to act as check instructors without further
action from the FAA.

[FR Doc. 2019-21449 Filed 10-1-19; 8:45 am]
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[Federal Register: September 29, 2010 (Volume 75, Number 188)]
[Notices]
[Page 60164-60165]
[DOCID:fr29se10-122]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE-2010-42]

Petition for Exemption; Summary of Petition Received

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of petition for exemption received.

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SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14, Code of Federal Regulations
(CFR) part 25. The purpose of this notice is to improve the public's
awareness of, and participation in, this aspect of FAA's regulatory
activities. Neither publication

of this notice nor the inclusion or omission of information in the
summary is intended to affect the legal status of the petition or its
final disposition.

DATE: Comments on this petition must identify the petition docket
number involved and must be received on or before October 19, 2010.

ADDRESSES: You may send comments identified by Docket Number FAA-2010-
0446 using any of the following methods:
     Government-wide rulemaking Web site: Go to http://
www.regulations.gov and follow the instructions for sending your
comments electronically.
     Mail: Send comments to the Docket Management Facility;
U.S. Department of Transportation, 1200 New Jersey Avenue, SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590.
     Fax: Fax comments to the Docket Management Facility at
202-493-2251.
     Hand Delivery: Bring comments to the Docket Management
Facility in Room W12-140 of the West Building Ground Floor at 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    Privacy: We will post all comments we receive, without change, to
http://www.regulations.gov, including any personal information you
provide. Using the search function of our docket Web site, anyone can
find and read the comments received into any of our dockets, including
the name of the individual sending the comment (or signing the comment
for an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (65 FR 19477-78).
    Docket: To read background documents or comments received, go to
http://www.regulations.gov at any time or to the Docket Management
Facility in Room W12-140 of the West Building Ground Floor at 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Michael Menkin, ANM-113, Federal
Aviation Administration, Transport Airplane Directorate, 1601 Lind
Ave., SW, Renton, WA 98057;<PHONE_NUMBER>; or Katherine Haley, ARM-203,
Office of Rulemaking, Federal Aviation Administration, 800 Independence
Avenue, SW.; Washington, DC 20591;<PHONE_NUMBER>.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on September 24, 2010.
Pamela Hamilton-Powell,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2010-0446.
    Petitioner: Gulfstream Aerospace Corporation (GAC).
    Section of 14 CFR Affected: 14 CFR 25.813(e).
    Description of Relief Sought: To allow the installation of doors
between passenger seats, occupiable for taxi, take off and landing, and
a passenger emergency exit for the Gulfstream GVI airplane. GAC intends
to operate the airplane under part 135.

[FR Doc. 2010-24368 Filed 9-28-10; 8:45 am]
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[Federal Register Volume 83, Number 16 (Wednesday, January 24, 2018)]
[Proposed Rules]
[Pages 3287-3291]
[FR Doc No: 2018-01124]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0967; Product Identifier 2017-NE-35-AD]
RIN 2120-AA64

Airworthiness Directives; GE Aviation Czech s.r.o. Turboprop
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for GE
Aviation Czech s.r.o. M601D-11, M601E-11, M601E-11A, M601E-11AS, M601E-
11S, M601F, H80, H80-100, H80-200, H75-100, H75-200, H85-100, and H85-
200 turboprop engines. This proposed AD was prompted by a review by the
manufacturer that identified the possibility of a power turbine (PT)
rotor overspeed and the uncontained release of PT blades. This proposed
AD would require installing a modified engine outlet system. We are
proposing this AD to address the unsafe condition on these products.

DATES: We must receive comments on this NPRM by March 12, 2018.

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 http://www.regulations.gov. Follow the instructions for submitting comments.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, 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.
     Fax:<PHONE_NUMBER>.
    For service information identified in this proposed AD, contact GE
Aviation Czech s.r.o., Beranov[yacute]ch 65, 199 02 Praha 9--
Let[ncaron]any, Czech Republic; phone: +420 222 538 111; fax: +420 222
538 222. You may view this service information at the FAA, Engine and
Propeller Standards Branch, 1200 District Avenue, Burlington, MA. 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 http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0967; 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 proposed AD, the mandatory continuing airworthiness information
(MCAI), the regulatory evaluation, any comments received, and other
information. The street address for the Docket Operations (phone: 800-
647-5527) is listed above. Comments will be available in the AD docket
shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Robert Green, Aerospace Engineer, ECO
Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone: 781-
238-7754; fax:<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite 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-2017-0967; Product Identifier 2017-
NE-35-AD'' at the beginning of your comments. We specifically invite
comments on the overall regulatory, economic, environmental, and energy
aspects of this NPRM. We will consider all comments received by the
closing date and may amend this NPRM because of those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact
with FAA personnel concerning this NPRM.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued EASA
AD 2017-0151, dated August 18, 2017 (referred to hereinafter as ``the
MCAI''), to correct an unsafe condition for the specified products. The
MCAI states:

    A recent design review identified the possibility of failure of
the power turbine (PT) or quill shaft splines.
    This condition, if not corrected, could lead to a PT rotor
overspeed, with consequent release of PT blade(s), possibly
resulting in high energy debris and damage to, and/or reduced
control of, the aeroplane.
    To address this potential unsafe condition, GE Aviation Czech
(GEAC) designed a modification (mod) of the engine outlet system and
issued Alert Service Bulletins (ASB) ASB-M601E-72-00-00-0070, ASB-
M601D-72-00-00-0053, ASB-M601F-72-00-00-0036, ASB-M601T-72-00-00-
0029, ASB-M601Z-72-00-00-0039, ASB-H75-72-00-00-0011, ASB-H80-72-00-
00-0025 and ASB-H85-72-00-00-0007 (single document, hereafter
referred to as ``the ASB'' in this AD), providing instructions for
modification of engines in service.
    For the reason described above, this AD requires modification of
the affected engines, and prohibits installation of pre-mod parts.

    You may obtain further information by examining the MCAI in the AD
docket on the internet at http://www.regulations.gov by searching for
and locating Docket No. FAA-2017-0967.

Related Service Information Under 1 CFR Part 51

    We reviewed GE Aviation Czech Alert Service Bulletin (ASB) ASB-
M601E-72-00-00-0070 [02], ASB-M601D-72-00-00-0053 [02], ASB-M601F-72-
00-00-0036 [02], ASB-M601T-72-00-00-0029 [02], ASB-M601Z-72-00-00-0039
[02], ASB-H75-72-00-00-0011 [02], ASB-H80-72-00-00-0025 [02], and ASB-
H85-72-00-00-0007 [02] (single document), dated June 12, 2017. The ASB
describes procedures for removal and replacement of the engine outlet
system hardware. This service information is reasonably available
because the interested parties have access to it through their normal
course of business or by the means identified in the ADDRESSES section.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of the
Czech Republic and is approved for operation in the United States.
Pursuant to our bilateral agreement with the European Community, EASA
has notified us of the unsafe condition described in the MCAI and
service information referenced above. We are proposing this AD because
we evaluated all information provided by EASA and determined the unsafe
condition exists and is likely to exist or develop on other products of
the same type design. This proposed AD would require installing a
modified engine outlet system.

Costs of Compliance

    We estimate that this proposed AD affects 167 engines installed on
airplanes of U.S. registry.
    We estimate the following costs to comply with this proposed AD:
    [GRAPHIC] [TIFF OMITTED] TP24JA18.000

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, Section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to engines, propellers, and
associated appliances to the Manager, Engine and Propeller Standards
Branch, Policy and Innovation Division.

Regulatory Findings

    We 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) Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

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):

GE Aviation Czech s.r.o. (Type Certificate previously held by WALTER
Engines a.s., Walter a.s., and MOTORLET a.s.): Docket No. FAA-2017-
0967; Product Identifier 2017-NE-35-AD.

(a) Comments Due Date

    We must receive comments by March 12, 2018.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to GE Aviation Czech s.r.o. M601D-11, M601E-11,
M601E-11A, M601E-11AS, M601E-11S, M601F, H75-100, H75-200, H80, H80-
100, H80-200, H85-100, and H85-200 turboprop engines.

(d) Subject

    Joint Aircraft System Component (JASC) Code 7810, Engine
Collector/Tailpipe/Nozzle.

(e) Reason

    This AD was prompted by a review by the manufacturer that
identified the possibility of a power turbine (PT) overspeed and the
uncontained release of PT blades. We are issuing this AD to prevent
uncontained release of the PT blades. The unsafe condition, if not
addressed, could result in failure of the PT blades, uncontained
release of the blades, 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) After the effective date of this AD, replace the parts
listed in Tables 2, 3, 4, and 5 to paragraph (g) of this AD with the
parts identified in Planning Information, Paragraph 1.5, Sections I
through IV, respectively, in GE Aviation Czech Alert Service
Bulletin (ASB) ASB-M601E-72-00-00-0070 [02], ASB-M601D-72-00-00-0053
[02], ASB-M601F-72-00-00-0036 [02], ASB-M601T-72-00-00-0029 [02],
ASB-M601Z-72-00-00-0039 [02], ASB-H75-72-00-00-0011 [02], ASB-H80-
72-00-00-0025 [02], and ASB-H85-72-00-00-0007 [02] (single
document), dated June 12, 2017, at the times specified below,
whichever occurs first:
    (i) During the next engine shop visit; or
    (ii) within 6,600 engine equivalent cycles since new or since
last overhaul; or
    (iii) within the compliance times specified in Table 1 to
paragraph (g) of this AD.
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[GRAPHIC] [TIFF OMITTED] TP24JA18.001

 BILLING CODE 4910-13-C

(h) Installation Prohibition

    (1) Do not install a part with a P/N listed in Tables 2, 3, 4,
or 5 to paragraph (g) of this AD on an engine after that engine has
been modified as required by paragraph (g) of this AD.
    (2) After the effective date of this AD, do not install a part
with a P/N listed in Tables 2, 3, 4, or 5 to paragraph (g) of this
AD on any engine manufactured on or after September 1, 2017.

(i) Definition

    For the purpose of this AD, an engine shop visit is when the
engine is overhauled or rebuilt, or the PT is disassembled.

(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
ECO Branch, send it to the attention of the person identified in
paragraph (k). You may email your request to: [email protected].
    (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 Robert Green,
Aerospace Engineer, ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
[email protected].
    (2) Refer to MCAI European Aviation Safety Agency AD 2017-0151,
dated August 18, 2017, for more information. You may examine the
MCAI in the AD docket on the internet at http://www.regulations.gov
by searching for and locating it in Docket No. FAA-2017-0967.
    (3) For service information identified in this AD, contact GE
Aviation Czech s.r.o., Beranov[yacute]ch 65, 199 02 Praha 9--
Let[ncaron]any, Czech Republic; phone: +420 222 538 111; fax: +420
222 538 222. You may view this referenced service information at the
FAA, Engine & Propeller Standards Branch, 1200 District Avenue,
Burlington, MA. For information on the availability of this material
at the FAA, call<PHONE_NUMBER>.

    Issued in Burlington, Massachusetts, on January 17, 2018.
Robert J. Ganley,
Manager, Engine and Propeller Standards Branch, Aircraft Certification
Service.
[FR Doc. 2018-01124 Filed 1-23-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 251 (Friday, December 30, 2011)]
[Rules and Regulations]
[Pages 82106-82110]
[FR Doc No: 2011-33243]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2011-0919; Directorate Identifier 2010-NM-088-AD;
Amendment 39-16903; AD 2011-27-02]
RIN 2120-AA64

Airworthiness Directives; Lockheed Martin Corporation/Lockheed
Martin Aeronautics Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Lockheed Martin Corporation/Lockheed Martin Aeronautics Company Model
L-1011-385-1, L-1011-385-1-14, L-1011-385-1-15, and L-1011-385-3
airplanes. This AD was prompted by results from a damage tolerance
analysis conducted by the manufacturer indicating that fatigue cracking
could occur in wing rear spar and upper surface zones. This AD requires
repetitive inspections for cracking of the wing rear spar and upper
surface zones, and repair if necessary. We are issuing this AD to
detect and correct such fatigue cracking, which could result in
cracking that grows large enough to reduce the wing strength below
certificated requirements and possibly cause fracture of the rear spar,
resulting in extensive damage to the wing and possible fuel leaks.

DATES: This AD is effective February 3, 2012.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in the AD as of February 3,
2012.

ADDRESSES: For service information identified in this AD, Lockheed
Martin Corporation/Lockheed Martin Aeronautics Company, Airworthiness
Office, Dept. 6A0M, Zone 0252, Column P-58, 86 S. Cobb Drive, Marietta,
Georgia 30063; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Internet http://www.lockheedmartin.com/ams/tools/TechPubs.html. You may review copies of the referenced service
information at the FAA, Transport Airplane Directorate, 1601 Lind
Avenue SW., Renton, Washington. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; or in person at the Docket Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the regulatory evaluation,
any comments received, and other information. The address for the
Docket Office (phone:<PHONE_NUMBER>) is Document Management Facility,
U.S. Department of Transportation, Docket Operations, M-30, West
Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Carl Gray, Aerospace Engineer,
Airframe Branch, ACE-117A, FAA, Atlanta Aircraft Certification Office
(ACO), 1701 Columbia Avenue, College Park, Georgia 30337; phone: (404)
474-5554; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
That NPRM published in the Federal Register on September 21, 2011 (76
FR 58416). That NPRM proposed to require repetitive inspections for
cracking of the wing rear spar and upper surface zones, and repair if
necessary.

Comments

    We gave the public the opportunity to participate in developing
this AD. We received no comments on the NPRM (76 FR 58416, September
21, 2011) or on the determination of the cost to the public.

Conclusion

    We reviewed the relevant data and determined that air safety and
the public interest require adopting the AD as proposed.

Interim Action

    We consider this AD interim action. If final action is later
identified, we might consider further rulemaking then.

Costs of Compliance

    We estimate that this AD affects 4 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                            Parts                               Cost on U.S.
              Action                      Labor cost         cost      Cost per product          operators
----------------------------------------------------------------------------------------------------------------
Models: L-1011-385-1, L-1011-385-1- 21 work-hours x $85         $0  $1,785 per inspection  $3,570 per inspection
 14, L-1011-385-1-15, Zones 1A       per hour = $1,785               cycle.                 cycle (2 airplanes).
 through 1E (Non-destructive         per inspection cycle.
 Inspection).
Models: L-1011-385-1, L-1011-385-1- 5 work-hours x $85           0  $425 per inspection    $850 per inspection
 14, L-1011-385-1-15, Zone 1F        per hour = $425 per             cycle.                 cycle (2 airplanes).
 (Detailed Inspection).              inspection cycle.
Model: L-1011-385-3, Zones 1A       24 work-hours x $85          0  $2,040 per inspection  $4,080 per inspection
 through 1E (Non-destructive         per hour = $2,040               cycle.                 cycle (2 airplanes).
 Inspection).                        per inspection cycle.
Model: L-1011-385-3, Zone 1F        5 work-hours x $85           0  $425 per inspection    $850 per inspection
 (Detailed Inspection).              per hour = $425 per             cycle.                 cycle (2 airplanes).
                                     inspection cycle.
----------------------------------------------------------------------------------------------------------------

    We have received no definitive data that would enable us to provide
cost estimates for the on-condition actions specified in this AD.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with

promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2011-27-02 Lockheed Martin Corporation/Lockheed Martin Aeronautics
Company: Amendment 39-16903; Docket No. FAA-2011-0919; Directorate
Identifier 2010-NM-088-AD.

 (a) Effective Date

    This AD is effective February 3, 2012.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Lockheed Martin Corporation/Lockheed Martin
Aeronautics Company Model L-1011-385-1, L-1011-385-1-14, L-1011-385-
1-15, and L-1011-385-3 airplanes, certificated in any category,
serial numbers 1002 through 1250 inclusive.

(d) Subject

    Air Transport Association (ATA) of America Code 57, Wings.

(e) Unsafe Condition

    This AD results from a damage tolerance analysis conducted by
the manufacturer indicating that fatigue cracking could occur in
wing rear spar and upper surface zones. We are issuing this AD to
detect and correct such fatigue cracking, which could result in
cracking that grows large enough to reduce the wing strength below
certificated requirements and possibly cause fracture of the rear
spar, resulting in extensive damage to the wing and possible fuel
leaks.

(f) Compliance

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

(g) Inspections of Wing Rear Spar and Upper Surface Zones, and
Corrective Actions

    At the applicable time specified in paragraph (k) of this AD, do
eddy current non-destructive inspections (NDI) and detailed
inspections for cracking at the applicable zones specified in
paragraph (g)(1) or (g)(2) of this AD, in accordance with the
Accomplishment Instructions of Lockheed Service Bulletin 093-57-226,
dated August 31, 2009. Repeat the inspections thereafter at the
applicable interval specified in Table 1 of this AD.
    (1) For Model L-1011-385-1, L-1011-385-1-14, and L-1011-385-1-15
airplanes: Zones 1A through 1E, and Zone 1F.
    (2) For Model L-1011-385-3 airplanes: Zones 3A through 3E, and
Zone 3F.

(h) Additional Inspection if Cracking Is Found

    Except as specified in paragraph (j) of this AD, if any cracking
is detected during any inspection required by paragraph (g) of this
AD: Before further flight, remove the fastener(s) at the suspect
area, as defined in Lockheed Service Bulletin 093-57-226, dated
August 31, 2009; and do a secondary eddy current inspection to
detect cracking of fastener holes with suspected crack indications;
in accordance with the Accomplishment Instructions of Lockheed
Service Bulletin 093-57-226, dated August 31, 2009.

(i) Repair

    Except as specified in paragraph (j) of this AD, if a crack
finding is confirmed by the inspection required by paragraph (h) of
this AD and the cracking is within the allowable repair limits
specified in Lockheed Martin Repair Drawing LCC-7622-369, Revision
March 30, 1995: Before further flight, repair the cracking, in
accordance with Lockheed Martin Repair Drawing LCC-7622-369,
Revision March 30, 1995. If a crack finding confirmed by the
inspection required by paragraph (h) of this AD is not within the
allowable repair limits specified in Lockheed Martin Repair Drawing
LCC-7622-369, Revision March 30, 1995: Before further flight, repair
the cracking, in accordance with a method approved by the Manager,
Atlanta Aircraft Certification Office (ACO), FAA. For a repair
method to be approved by the Manager, Atlanta ACO, as required by
this paragraph, the Manager's approval letter must specifically
refer to this AD.

(j) Exception to Service Bulletin

    If any cracking is found during any inspection required by this
AD, and Lockheed Service Bulletin 093-57-226, dated August 31, 2009;
or Lockheed Martin Repair Drawing LCC-7622-369, Revision March 30,
1995; specifies contacting Lockheed for appropriate action: Before
further flight, repair the cracking in accordance with a method
approved by the Manager, Atlanta ACO, FAA. For a repair method to be
approved by the Manager, Atlanta ACO, as required by this paragraph,
the Manager's approval letter must specifically refer to this AD.

(k) Compliance Times for Inspections

    Do the inspections required by paragraph (g) of this AD at the
applicable time specified in table 1 of this AD.

                                    Table 1--Compliance Times for Inspections
----------------------------------------------------------------------------------------------------------------

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      Airplane models and zones            Compliance time (whichever occurs later)        Repetitive interval
                                                                                (not to exceed)
----------------------------------------------------------------------------------------------------------------
L-1011-385-1 having accumulated fewer  Within 7,000 flight      Within 1,000 flight      1,100 flight cycles.
 than 7,000 flight cycles after the     cycles or 10 years       cycles after the
 accomplishment of Lockheed Martin      after the                effective date of this
 Service Bulletin 093-57-184, 093-57-   accomplishment of        AD.
 196, or 093-57-215; as of the          Lockheed Martin
 effective date of this AD; Zones 1A    Service Bulletin 093-
 through 1E;                            57-184, 093-57-196, or
(Non-destructive Inspection (NDI))...   093-57-215, whichever
                                        occurs first.
L-1011-385-1 having accumulated fewer  Within 7,000 flight      Within 90 flight cycles  90 flight cycles.
 than 7,000 flight cycles after the     cycles or 10 years       or 30 days after the
 accomplishment of Lockheed Martin      after the                effective date of this
 Service Bulletin 093-57-184, 093-57-   accomplishment of        AD, whichever occurs
 196, or 093-57-215; as of the          Lockheed Martin          later.
 effective date of this AD; Zone 1F;    Service Bulletin 093-
 (Detailed Inspection).                 57-184, 093-57-196, or
                                        093-57-215, whichever
                                        occurs first.
L-1011-385-1 having accumulated 7,000  Within 1,000 flight      N/A....................  1,100 flight cycles.
 flight cycles or more flight cycles    cycles or 12 months
 after the accomplishment of Lockheed   after the effective
 Martin Service Bulletin 093-57-184,    date of this AD,
 093-57-196, or 093-57-215; as of the   whichever occurs first.
 effective date of this AD; Zones 1A
 through 1E; (NDI).
L-1011-385-1 having accumulated 7,000  Within 90 flight cycles  Within 30 days after     90 flight cycles.
 flight cycles or more after the        after the effective      the effective date of
 accomplishment of Lockheed Martin      date of this AD.         this AD.
 Service Bulletin 093-57-184, 093-57-
 196, or 093-57-215; as of the
 effective date of this AD; Zone 1F;
 (Detailed Inspection).
L-1011-385-1-14 having accumulated     Within 6,900 flight      Within 1,000 flight      900 flight cycles.
 fewer than 6,900 flight cycles after   cycles or 10 years       cycles after the
 the accomplishment of Lockheed         after the                effective date of this
 Martin Service Bulletin 093-57-184,    accomplishment of        AD.
 093-57-196, or 093-57-215; as of the   Lockheed Martin
 effective date of this AD; Zones 1A    Service Bulletin 093-
 through 1E; (NDI).                     57-184, 093-57-196, or
                                        093-57-215, whichever
                                        occurs first.
L-1011-385-1-14 having accumulated     Within 6,900 flight      Within 90 flight cycles  90 flight cycles.
 fewer than 6,900 flight cycles after   cycles or 10 years       or 30 days after the
 the accomplishment of Lockheed         after the                effective date of this
 Martin Service Bulletin 093-57-184,    accomplishment of        AD, whichever occurs
 093-57-196, or 093-57-215; as of the   Lockheed Martin          later.
 effective date of this AD; Zone 1F;    Service Bulletin 093-
 (Detailed Inspection).                 57-184, 093-57-196, or
                                        093-57-215, whichever
                                        occurs first.
L-1011-385-1-14 having accumulated     Within 1,000 flight      N/A....................  900 flight cycles.
 6,900 or more flight cycles after      cycles or 12 months
 the accomplishment of Lockheed         after the effective
 Martin Service Bulletin 093-57-184,    date of this AD,
 093-57-196, or 093-57-215; as of the   whichever occurs first.
 effective date of this AD; Zones 1A
 through 1E; (NDI).
L-1011-385-1-14 having accumulated     Within 90 flight cycles  Within 30 days after     90 flight cycles.
 6,900 or more flight cycles after      after the effective      the effective date of
 the accomplishment of Lockheed         date of this AD.         this AD.
 Martin Service Bulletin 093-57-184,
 093-57-196, or 093-57-215; as of the
 effective date of this AD; Zone 1F;
 (Detailed Inspection).

L-1011-385-1-15 having accumulated     Within 5,600 flight      Within 1,000 flight      500 flight cycles.
 fewer than 5,600 flight cycles after   cycles or 10 years       cycles after the
 the accomplishment of Lockheed         after the                effective date of this
 Martin Service Bulletin 093-57-184,    accomplishment of        AD.
 093-57-196, or 093-57-215; as of the   Lockheed Martin
 effective date of this AD; Zones 1A    Service Bulletin 093-
 through 1E; (NDI).                     57-184, 093-57-196, or
                                        093-57-215, whichever
                                        occurs first.
L-1011-385-1-15 having accumulated     Within 5,600 flight      Within 60 flight cycles  60 flight cycles.
 fewer than 5,600 flight cycles after   cycles or 10 years       or 30 days after the
 the accomplishment of Lockheed         after the                effective date of this
 Martin Service Bulletin 093-57-184,    accomplishment of        AD, whichever occurs
 093-57-196, or 093-57-215; as of the   Lockheed Martin          later.
 effective date of this AD; Zone 1F;    Service Bulletin 093-
 (Detailed Inspection).                 57-184, 093-57-196, or
                                        093-57-215, whichever
                                        occurs first.
L-1011-385-1-15 having accumulated     Within 1,000 flight      N/A....................  500 flight cycles.
 5,600 or more flight cycles after      cycles or 12 months
 the accomplishment of Lockheed         after the effective
 Martin Service Bulletin 093-57-184,    date of this AD,
 093-57-196, or 093-57-215; as of the   whichever occurs first.
 effective date of this AD; Zones 1A
 through 1E; (NDI).
L-1011-385-1-15 having accumulated     Within 60 flight cycles  Within 30 days after     60 flight cycles.
 5,600 or more flight cycles after      after the effective      the effective date of
 the accomplishment of Lockheed         date of this AD.         this AD.
 Martin Service Bulletin 093-57-184,
 093-57-196, or 093-57-215; as of the
 effective date of this AD; Zone 1F;
 (Detailed Inspection).
L-1011-385-3 having accumulated fewer  Within 8,400 flight      Within 1,000 flight      1,200 flight cycles.
 than 8,400 flight cycles after the     cycles or 10 years       cycles after the
 accomplishment of Lockheed Martin      after the                effective date of this
 Service Bulletin 093-57-184, 093-57-   accomplishment of        AD.
 196, or 093-57-215; as of the          Lockheed Martin
 effective date of this AD; Zones 1A    Service Bulletin 093-
 through 1E; (NDI).                     57-184, 093-57-196, or
                                        093-57-215, whichever
                                        occurs first.
L-1011-385-3 having accumulated fewer  Within 90 flight cycles  Within 85 flight cycles  85 flight cycles.
 than 8,400 flight cycles after the     or 30 days after the     or 30 days after the
 accomplishment of Lockheed Martin      effective date of this   effective date of this
 Service Bulletin 093-57-184, 093-57-   AD, whichever occurs     AD, whichever occurs
 196, or 093-57-215; as of the          later.                   later.
 effective date of this AD; Zone 1F;
 (Detailed Inspection).
L-1011-385-3 having accumulated 8,400  Within 1,000 flight      N/A....................  1,200 flight cycles.
 or more flight cycles after the        cycles or 12 months
 accomplishment of Lockheed Martin      after the effective
 Service Bulletin 093-57-184, 093-57-   date of this AD,
 196, or 093-57-215; as of the          whichever occurs first.
 effective date of this AD; Zones 1A
 through 1E; (NDI).
L-1011-385-3 having accumulated 8,400  Within 85 flight cycles  Within 30 days after     85 flight cycles.
 or more flight cycles after the        after the effective      the effective date of
 accomplishment of Lockheed Martin      date of this AD.         this AD.
 Service Bulletin 093-57-184, 093-57-
 196, or 093-57-215; as of the
 effective date of this AD; Zone 1F;
 (Detailed Inspection).
----------------------------------------------------------------------------------------------------------------

(l) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Atlanta ACO, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or local Flight Standards District Office, as
appropriate. If sending information directly to the manager of the
ACO, send it to the attention of the person identified in the
Related Information section of this AD.
    (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.

(m) Related Information

    For more information about this AD, contact Carl Gray, Aerospace
Engineer,

Airframe Branch, ACE-117A, FAA, Atlanta ACO, 1701 Columbia Avenue,
College Park, Georgia 30337; phone:<PHONE_NUMBER>; fax: (404) 474-
5606; email<EMAIL_ADDRESS>
(n) Material Incorporated by Reference

    (1) You must use the following service information to do the
actions required by this AD, unless the AD specifies otherwise. The
Director of the Federal Register approved the incorporation by
reference (IBR) under 5 U.S.C. 552(a) and 1 CFR part 51 of the
following service information on the date specified:
    (i) Lockheed Service Bulletin 093-57-226, dated August 31, 2009,
approved for IBR February 3, 2012.
    (ii) Lockheed Martin Repair Drawing LCC-7622-369, Revision March
30, 1995, approved for IBR February 3, 2012. Only the first page of
this document contains the manufacturer name, revision, and date of
the document.
    (2) For service information identified in this AD, contact
Lockheed Martin Corporation/Lockheed Martin Aeronautics Company,
Airworthiness Office, Dept. 6A0M, Zone 0252, Column P-58, 86 S. Cobb
Drive, Marietta, Georgia 30063; telephone<PHONE_NUMBER>; fax (770)
494-5445; email<EMAIL_ADDRESS>Internet http://www.lockheedmartin.com/ams/tools/TechPubs.html.
    (3) You may review copies of the referenced service information
at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW.,
Renton, Washington. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.
    (4) You may also review copies of the service information that
is incorporated by reference at the National Archives and Records
Administration (NARA). For information on the availability of this
material at an NARA facility, call<PHONE_NUMBER>, or go to http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.

    Issued in Renton, Washington, on December 19, 2011.
Kalene C. Yanamura,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2011-33243 Filed 12-29-11; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 111 (Monday, June 12, 2017)]
[Notices]
[Pages 26970-26975]
[FR Doc No: 2017-12043]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80865; File No. SR-NYSEArca-2017-48]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating
to the Listing and Trading of Shares of the Franklin Liberty
Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal
Bond ETF Under NYSE Arca Equities Rule 8.600

June 6, 2017.

I. Introduction

    On May 8, 2017, NYSE Arca, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade
shares (``Shares'') of the Franklin Liberty Intermediate Municipal
Opportunities ETF and Franklin Liberty Municipal Bond ETF (each, a
``Fund'' and collectively, the ``Funds'') under NYSE Arca Equities Rule
8.600. The proposed rule change was published for comment in the
Federal Register on May 3, 2017.\3\ On May 8, 2017, the Exchange filed
Amendment No. 1 to the proposed rule change.\4\ The Commission has not
received any comments on the proposed rule change. The Commission is
approving the proposed rule change, as modified by Amendment No. 1
thereto.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 80541 (April 27,
2017), 82 FR 20656 (``Notice'').
    \4\ In Amendment No. 1, which amended and replaced the proposed
rule change in its entirety, the Exchange, among other things,
clarified that: (i) The Franklin Liberty Municipal Bond ETF will
only buy Municipal Securities (defined below) rated, at the time of
purchase, in one of the top four ratings categories by one or more
U.S. nationally recognized rating services (or comparable unrated or
short-term rated securities); (ii) the Franklin Liberty Municipal
Bond ETF may not buy defaulted or distressed Municipal Securities
(which limitation will be applied at the time of purchase, and the
Fund is not required to sell a Municipal Security that has defaulted
or become distressed if the Adviser believes it is advantageous to
continue holding the security); (iii) the Franklin Liberty Municipal
Bond ETF may not buy high-yield or lower-rated debt securities
(which limitation generally will be applied at the time of purchase
and a downgrade of a particular security below one of the top four
ratings categories will not automatically cause the Fund to sell the
security); (iv) the components of a Fund's portfolio with a minimum
original principal amount outstanding of $100 million or more may in
the aggregate account for less than 75% of the weight of a Fund's
portfolio; and (v) trading will be subject to NYSE Arca Equities
Rule 8.600(d)(2)(D), which sets forth circumstances under which
trading may be halted. Amendment No. 1 also made non-substantive,
technical amendments. Because Amendment No. 1 makes only clarifying
and technical changes, and does not present unique or novel
regulatory issues, it is not subject to notice and comment.
Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nysearca-2017-48/nysearca201748-1745331-151464.pdf.
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II. The Exchange's Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Funds under
NYSE Arca Equities Rule 8.600, which governs the listing and trading of
Managed Fund Shares on the Exchange. The Shares will be offered by the
Franklin Templeton ETF Trust (``Trust''), which is registered with the
Commission as an open-end management investment company.\5\ Each Fund
is a series of the Trust. The investment adviser to each Fund will be
Franklin Advisers, Inc. (``Adviser'').\6\ Franklin Templeton
Distributors, Inc. will serve as the distributor, Franklin Templeton
Services, LLC will serve as the administrator, and State Street Bank
and Trust Company will serve as the sub-administrator, custodian, and
transfer agent for each Fund.
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    \5\ According to the Exchange, on March 23, 2017, the Trust
filed with the Commission an amendment to its registration statement
on Form N-1A under the Securities Act of 1933 (15 U.S.C. 77a) and
under the Investment Company Act of 1940 (``1940 Act'') relating to
the Funds (File Nos. 333-208873 and 811-23124) (``Registration
Statement''). In addition, according to the Exchange, the Commission
has issued an order granting certain exemptive relief to the Trust,
Franklin Advisers, Inc., and Franklin Templeton Distributors, Inc.
under the 1940 Act. See Investment Company Act Release No. 30350
(January 15, 2013) (File No. 812-14042).
    \6\ The Exchange represents that the Adviser is not a registered
broker-dealer but is affiliated with a broker-dealer. The Exchange
represents that the Adviser has implemented and will maintain a
``fire wall'' with respect to such broker-dealer affiliate regarding
access to information concerning the composition of and/or changes
to each Fund's portfolio. In addition, in the event (a) the Adviser
becomes registered as a broker-dealer or newly affiliated with a
broker-dealer, or (b) any new adviser or sub-adviser to a Fund is a
registered broker-dealer or becomes affiliated with a broker-dealer,
the applicable adviser or sub-adviser will implement and maintain a
fire wall with respect to its relevant personnel or broker-dealer
affiliate regarding access to information concerning the composition
and/or changes to a Fund's portfolio, and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding such portfolio.
---------------------------------------------------------------------------

    The Exchange has made the following representations and statements
in describing the Funds and their investment strategies, including each
Fund's portfolio holdings and investment restrictions.\7\
---------------------------------------------------------------------------

    \7\ The Commission notes that additional information regarding
the Trust, the Funds, and the Shares, including investment
strategies, risks, creation and redemption procedures, calculation
of net asset value (``NAV''), fees, distributions, and taxes, among
other things, is included in the proposed rule change, as modified
by Amendment No. 1, and the Registration Statement, as applicable.
See Amendment No. 1 and Registration Statement, supra notes 4 and 5,
respectively.
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A. Exchange's Description of the Funds' Principal Investments

1. Franklin Liberty Intermediate Municipal Opportunities ETF
    According to the Exchange, the investment objective of the Franklin
Liberty Intermediate Municipal Opportunities ETF will be to achieve a
high level of current income that is exempt from federal income taxes.
Under normal market conditions,\8\ the Fund will invest at least 80% of
its net assets in municipal securities whose interest is free from
federal income taxes, including the federal alternative minimum tax.
---------------------------------------------------------------------------

    \8\ The term ``normal market conditions'' is defined in NYSE
Arca Equities Rule 8.600 (c)(5).
---------------------------------------------------------------------------

    The Fund may invest in municipal securities rated in any rating
category by U.S. nationally recognized rating services (or comparable
unrated or short-term rated securities), including below investment
grade and defaulted securities and securities of issuers that are, or
are about to be, involved in reorganizations, financial restructurings,
or bankruptcy (generally referred to as ``distressed debt''). Such
investments typically involve the purchase of lower-rated or defaulted
debt securities, comparable unrated debt securities, or other
indebtedness (or participations in the indebtedness) of such issuers.
Although the Adviser will search for investments across a large number
of municipal securities that finance different types of projects, from
time to time, based on economic conditions, the Fund may have
significant positions in municipal securities that finance similar
types of projects.
    The Funds may invest in one or more of the following municipal
securities (collectively, ``Municipal Securities''):
     General obligation bonds, which are typically issued by
states, counties, cities, towns and regional districts and backed by
the issuer's pledge of its full faith, credit and taxing power for the
payment of principal and interest;
     revenue bonds, which are generally backed by the net
revenue derived from a particular facility, group of facilities, or, in
some cases, the proceeds of a special excise tax or other specific
revenue source;
     anticipation notes, including bond, revenue and tax
anticipation notes, which are issued to provide interim financing of
various municipal needs in anticipation of the receipt of other sources
of money for repayment of the notes;
     insured Municipal Securities, which are covered by
insurance policies

that guarantee the timely payment of principal and interest; \9\
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    \9\ When beneficial, a Fund may purchase insurance for an
uninsured bond directly from a qualified municipal bond insurer, in
which case a Fund pays the insurance premium directly to the
insurance company.
---------------------------------------------------------------------------

     municipal lease obligations, which generally are issued to
support a government's infrastructure by financing or refinancing
equipment or property acquisitions or the construction, expansion or
rehabilitation of public facilities; \10\
---------------------------------------------------------------------------

    \10\ A Fund may also gain exposure to municipal lease
obligations through certificates of participation, which represent a
proportionate interest in the payments under a specified lease or
leases.
---------------------------------------------------------------------------

     Municipal Securities that are issued on a when-issued or
delayed delivery basis;
     variable and floating rate securities, including variable
rate demand notes, municipal inflation protected securities, index-
based floating rate securities, and auction rate securities, which have
interest rates that change either at specific intervals from daily up
to semi-annually, or whenever a benchmark rate changes;
     pre-refunded bonds, which are outstanding debt securities
that are not immediately callable (redeemable) by the issuer but have
been ``pre-refunded'' by the issuer;
     zero coupon bonds (including convertible and step coupon
bonds) and deferred interest securities;
     stripped securities, which are debt securities that have
been transformed from a principal amount with periodic interest coupons
into a series of zero coupon bonds, each with a different maturity date
corresponding to one of the payment dates for interest coupon payments
or the redemption date for the principal amount;
     mandatory tender (mandatory put) Municipal Securities,
which may be sold with a requirement that a holder of a security
surrender the security to the issuer or its agent for cash at a date
prior to the stated maturity;
     callable securities, which give the issuer the right to
redeem the security on a given date or dates (known as the call dates)
prior to maturity;
     tax-exempt commercial paper, which typically represents an
unsecured short-term obligation (270 days or less) issued by a
municipality; and
     tax-exempt or qualified private activity and industrial
development revenue bonds, which are typically issued by or on behalf
of public authorities to finance various privately operated facilities
which are expected to benefit the municipality and its residents, such
as business, manufacturing, housing, sports and pollution control, as
well as public facilities such as airports, mass transit systems, ports
and parking.
2. Franklin Liberty Municipal Bond ETF
    According to the Exchange, the investment objective of the Franklin
Liberty Municipal Bond ETF will be to achieve a high level of current
income that is exempt from federal income taxes. Under normal market
conditions, the Fund will invest at least 80% of its net assets in
Municipal Securities (as described above) whose interest is free from
federal income taxes, including the federal alternative minimum tax.
    Although the Adviser will search for investments across a large
number of Municipal Securities that finance different types of
projects, from time to time, based on economic conditions, the Fund may
have significant positions in Municipal Securities that finance similar
types of projects.
    The Fund may invest in one or more of the Municipal Securities
listed above. The Fund will only buy Municipal Securities rated, at the
time of purchase, in one of the top four ratings categories by one or
more U.S. nationally recognized rating services (or comparable unrated
or short-term rated securities).\11\ The Fund may not buy defaulted or
distressed Municipal Securities.\12\
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    \11\ This limitation generally is applied at the time of
purchase and a downgrade of a particular security below one of the
top four ratings categories will not automatically cause the Fund to
sell the security. The Adviser will, however, take such downgrade
into account when analyzing the portfolio.
    \12\ This limitation generally will be applied at the time of
purchase and the Fund is not required to sell a Municipal Security
that has defaulted or become distressed if the Adviser believes it
is advantageous to continue holding the security.
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B. Exchange's Description of the Funds' Other Investments

    According to the Exchange, while each Fund, under normal market
conditions, will invest at least 80% of its net assets in Municipal
Securities whose interest is free from federal income taxes, including
the federal alternative minimum tax, each Fund may invest up to 20% of
its net assets in the securities that pay interest that may be subject
to the federal alternative minimum tax and, although not anticipated,
in securities that pay taxable interest, as described below. With
respect to up to 20% of its net assets, each Fund may invest in bank
obligations; \13\ taxable commercial paper; \14\ other investment
companies,\15\ including exchange-traded funds (``ETFs''); \16\ U.S.
government securities; 3\17\ and unrated debt securities.\18\
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    \13\ Bank obligations include fixed, floating or variable rate
certificates of deposit (CDs), letters of credit, time and savings
deposits, bank notes and bankers' acceptances. CDs are negotiable
certificates issued against funds deposited in a commercial bank for
a definite period of time and earning a specified return. Time
deposits are non-negotiable deposits that are held in a banking
institution for a specified period of time at a stated interest
rate. Savings deposits are deposits that do not have a specified
maturity and may be withdrawn by the depositor at any time. Bankers'
acceptances are negotiable drafts or bills of exchange normally
drawn by an importer or exporter to pay for specific merchandise.
    \14\ Commercial paper is an unsecured, short-term loan to a
corporation, typically for financing accounts receivable and
inventory with maturities of up to 270 days. Each Fund may invest in
taxable commercial paper only for temporary defensive purposes.
    \15\ Each Fund may invest in other investment companies to the
extent permitted by the 1940 Act, Commission rules thereunder and
exemptions thereto. Each Fund may also invest its cash balances in
affiliated money market funds to the extent permitted by its
investment policies and rules and exemptions granted under the 1940
Act.
    \16\ The ETFs in which a Fund may invest include Investment
Company Units (as described in NYSE Arca Equities Rule 5.2(j)(3));
Portfolio Depositary Receipts (as described in NYSE Arca Equities
Rule 8.100); and Managed Fund Shares (as described in NYSE Arca
Equities Rule 8.600). Such ETFs all will be listed and traded in the
U.S. on registered exchanges.
    \17\ U.S. government securities include obligations of, or
guaranteed by, the U.S. federal government, its agencies,
instrumentalities or sponsored enterprises. Some U.S. government
securities are supported by the full faith and credit of the U.S.
government. These include U.S. Treasury obligations and securities
issued by the Government National Mortgage Association (GNMA). A
second category of U.S. government securities are those supported by
the right of the agency, instrumentality or sponsored enterprise to
borrow from the U.S. government to meet its obligations. These
include securities issued by Federal Home Loan Banks. A third
category of U.S. government securities are those supported by only
the credit of the issuing agency, instrumentality or sponsored
enterprise. These include securities issued by the Federal National
Mortgage Association (FNMA) and Federal Home Loan Mortgage
Corporation (FHLMC).
    \18\ Debt securities or their issuers which are not rated by
rating agencies, sometimes due to the size of or manner of the
securities offering, the decision by one or more rating agencies not
to rate certain securities or issuers as a matter of policy, or the
unwillingness or inability of the issuer to provide the prerequisite
information and fees to the rating agencies.
---------------------------------------------------------------------------

    The Franklin Liberty Intermediate Municipal Opportunities ETF may
also

invest in defaulted debt securities \19\ and high-yield debt
securities.\20\
---------------------------------------------------------------------------

    \19\ Investments in securities of issuers that are, or are about
to be, involved in reorganizations, financial restructurings, or
bankruptcy (generally referred to as ``distressed debt'') typically
involve the purchase of lower-rated or defaulted debt securities,
comparable unrated debt securities, or other indebtedness of such
issuers. The Franklin Liberty Municipal Bond ETF may not buy
defaulted or distressed debt securities. However, the Franklin
Liberty Municipal Bond ETF is not required to sell a debt security
that has defaulted or become distressed if the Adviser believes it
is advantageous to continue holding the security.
    \20\ High-yield or lower-rated debt securities are securities
that have been rated by Moody's or S&P below their top four rating
categories (e.g., BB or Ba and lower) and are considered below
investment grade. The Franklin Liberty Municipal Bond ETF may not
buy high-yield or lower-rated debt securities. This limitation
generally is applied at the time of purchase and a downgrade of a
particular security below one of the top four ratings categories
will not automatically cause the Franklin Liberty Municipal Bond ETF
to sell the security. The Adviser will, however, take such downgrade
into account when analyzing the portfolio.
---------------------------------------------------------------------------

    A Fund may invest up to 100% of its assets in temporary defensive
investments, including cash, cash equivalents or other high quality
short-term investments, such as short-term debt instruments, including
U.S. government securities, high grade commercial paper, repurchase
agreements, negotiable certificates of deposit, non-negotiable fixed
time deposits, bankers acceptances, and other money market equivalents.
In addition, with respect to each of the Funds, on a temporary basis,
during periods of high cash inflows or outflows,\21\ a Fund may depart
from its principal investment strategies; for example, it may hold a
higher than normal proportion of its assets in cash. During such
periods, a Fund may not be able to achieve its investment objective. To
the extent allowed by exemptions from and rules under the 1940 Act and
a Fund's other investment policies and restrictions, the Adviser also
may invest a Fund's assets in shares of one or more money market funds
managed by the Adviser or its affiliates.
---------------------------------------------------------------------------

    \21\ ``Periods of high cash inflows or outflows,'' as used
herein, mean rolling periods of seven calendar days during which
inflows or outflows of cash, in the aggregate, exceed 10% of a
Fund's net assets as of the opening of business on the first day of
such periods.
---------------------------------------------------------------------------

C. Exchange's Description of the Funds' Investment Restrictions

    Each Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
consistent with Commission guidance. Each 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 a Fund's net assets are held
in illiquid assets. Illiquid assets include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
    Each Fund's investments will be consistent with its investment
objective and will not be used to provide multiple returns of a
benchmark or to produce leveraged returns.
    A Fund will not necessarily focus its investments in a particular
state, and will not invest more than 15% of its total assets in
Municipal Securities of any one state. Under normal market conditions,
except for periods of high cash inflows or outflows, each Fund will
satisfy the following criteria: (i) Each Fund will have a minimum of 35
Municipal Securities holdings; (ii) after a Fund has at least $100
million in assets, it will have a minimum of 75 Municipal Securities
holdings; (iii) with respect to 75% of each Fund's total assets, no
single Municipal Securities issuer will account for more than 3% of the
weight of a Fund's portfolio; for the remaining portion of each Fund's
assets, no single Municipal Securities issuer will account for more
than 6% of the weight of a Fund's portfolio; (iv) each Fund will limit
its investments in Municipal Securities of any one state to 15% of a
Fund's total assets and will be diversified among issuers in at least
10 states; and (v) each Fund will limit its investments in Municipal
Securities in any single sector to 25% of a Fund's total assets.\22\
The Exchange states that pre-refunded bonds will be excluded from the
above limits given that they have a high level of credit quality and
liquidity.\23\
---------------------------------------------------------------------------

    \22\ A Fund's investments in Municipal Securities will include
investments in state and local (e.g., county, city, town) Municipal
Securities relating to such sectors as the following: Dedicated tax;
public power; tax increment; toll road; port revenue; airport
revenue; water revenue; sewer revenue; higher education (colleges
and universities); wastewater revenue; school districts; and sales
tax revenue.
    \23\ Pre-refunded bonds (also known as refunded or escrow-
secured bonds) have a high level of credit quality and liquidity
because the issuer ``pre-refunds'' the bond by setting aside in
advance all or a portion of the amount to be paid to the bondholders
when the bond is called. Generally, an issuer uses the proceeds from
a new bond issue to buy high grade, interest bearing debt
securities, including direct obligations of the U.S. government,
which are then deposited in an irrevocable escrow account held by a
trustee bank to secure all future payments of principal and interest
on the pre-refunded bonds.
---------------------------------------------------------------------------

D. Exchange's Description of the Application of Generic Listing
Requirements to the Funds

    The Exchange states that it is submitting this proposed rule change
because the portfolios for the Funds will not meet all of the
``generic'' listing requirements of Commentary .01 to NYSE Arca
Equities Rule 8.600 applicable to the listing of Managed Fund Shares.
The Exchange states that each Fund's portfolio will meet all the
requirements set forth in Commentary .01 to NYSE Arca Equities Rule
8.600 except for those set forth in Commentary .01(b)(1), which
requires that components that in the aggregate account for at least 75%
of the fixed income weight of the portfolio each shall have a minimum
original principal amount outstanding of $100 million or more.

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\24\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\25\
which requires, among other things, that the Exchange's rules be
designed to prevent fraudulent and manipulative acts and practices,
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.
---------------------------------------------------------------------------

    \24\ 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).
    \25\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission also finds that the proposal to list and trade
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Act,\26\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last
sale information for the Shares and for ETFs will be available via the
Consolidated Tape Association (``CTA'') high-speed line, and from the
national securities exchange on which they are listed.\27\
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \27\ Amendment No. 1 at 19.

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

    The Indicative Optimized Portfolio Value (``IOPV'') of the Shares
(which is the Portfolio Indicative Value, as defined in NYSE Arca
Equities Rule 8.600(c)(3)) will be widely disseminated every 15 seconds
during the Exchange's Core Trading Session (normally 9:30 a.m. to 4:00
p.m., Eastern Time) by one or more major market data vendors or other
information providers.\28\ On each business day, before commencement of
trading in Shares in the Core Trading Session on the Exchange
(ordinarily 9:30 a.m., Eastern Time), each Fund's Web site will
disclose the Disclosed Portfolio \29\ that will form the basis for a
Fund's calculation of NAV at the end of the business day.\30\ In
addition, a basket composition file, which includes the security names
and share quantities, if applicable, required to be delivered in
exchange for a Fund's Shares, together with estimates and actual cash
components, will be publicly disseminated daily prior to the opening of
the Exchange via the National Securities Clearing Corporation. The
basket represents one creation unit of a Fund. The NAV of Shares of a
Fund will normally be determined as of the close of the Core Trading
Session on the Exchange (ordinarily 4:00 p.m. Eastern Time) on each
business day. Authorized participants may refer to the basket
composition file for information regarding securities and financial
instruments that may comprise a Fund's basket on a given day.
---------------------------------------------------------------------------

    \28\ The Exchange represents that several major market data
vendors display and/or make widely available IOPVs taken from CTA or
other data feeds. According to the Exchange, the IOPV will be based
on the current market value of a Fund's portfolio holdings that will
form the basis for the Fund's calculation of NAV at the end of the
Business Day, as disclosed on the Fund's Web site prior to that
Business Day's commencement of trading. According to the Exchange,
the IOPV will generally be determined by using both current market
quotations and/or price quotations obtained from broker-dealers that
may trade in the portfolio securities held by a Fund.
    \29\ The term ``Disclosed Portfolio'' is defined in NYSE Arca
Equities Rule 8.600(c)(2).
    \30\ On a daily basis, the Funds will disclose the information
required under NYSE Arca Equities Rule 8.600(c)(2) to the extent
applicable. The Web site information will be publicly available at
no charge.
---------------------------------------------------------------------------

    Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers. Quotation information from brokers and dealers
or pricing services will be available for Municipal Securities, unrated
debt securities, defaulted debt securities, high yield debt securities,
and cash equivalents or other high quality short-term investments,
including U.S. government securities, bank obligations, and taxable
commercial paper. Price information for money market funds and other
investment companies will be available from the applicable investment
company's Web site and from market data vendors. Pricing information
regarding each other asset class in which a Fund will invest will be
available generally through nationally recognized data service
providers through subscription agreements.
    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 per Share for each Fund will be calculated
daily and that the NAV and the Disclosed Portfolio for each Fund will
be made available to all market participants at the same time. Trading
in Shares of the Funds will be halted if the circuit breaker parameters
in NYSE Arca Equities Rule 7.12 have been reached or because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable.\31\ Trading in the Shares will be
subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth
additional circumstances under which Shares of the Funds may be halted.
---------------------------------------------------------------------------

    \31\ The Exchange may consider all relevant factors in
exercising its discretion to halt or suspend trading in the Shares
of a Fund.
---------------------------------------------------------------------------

    The Exchange represents that it has a general policy prohibiting
the distribution of material, non-public information by its employees.
In addition, Commentary .06 to NYSE Arca Equities Rule 8.600 further
requires that personnel who make decisions on the open-end fund's
portfolio composition must be subject to procedures designed to prevent
the use and dissemination of material, non-public information regarding
the open-end fund's portfolio. The Exchange represents that the Adviser
is not a registered broker-dealer but is affiliated with a broker-
dealer, and that the Adviser has implemented and will maintain a ``fire
wall'' with respect to that broker-dealer affiliate regarding access to
information concerning the composition of, and/or changes to, each
Fund's portfolio.
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit Holders in an Information Bulletin (``Bulletin'')
of the special characteristics and risks associated with trading the
Shares. The Exchange represents that trading in the Shares will be
subject to the existing trading surveillances, administered by the
Exchange, as well as cross-market surveillances administered by
Financial Industry Regulatory Authority (``FINRA'') on behalf of the
Exchange, which are designed to detect violations of Exchange rules and
applicable federal securities laws.\32\ The Commission believes that
the Exchange's initial and continued listing requirements, combined
with the Fund's investment criteria that would apply to Municipal
Securities in the portfolio, are designed to mitigate the potential for
price manipulation of the Shares.
---------------------------------------------------------------------------

    \32\ The Exchange states that FINRA conducts cross-market
surveillances on behalf of the Exchange pursuant to a regulatory
services agreement and that the Exchange is responsible for FINRA's
performance under this regulatory services agreement.
---------------------------------------------------------------------------

    The Exchange represents that it deems the Shares to be equity
securities, thus rendering the trading of 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
additional representations:
    (1) The Shares of each Fund will conform to the initial and
continued listing criteria under NYSE Arca Equities Rule 8.600.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) Trading in the Shares will be subject to the existing trading
surveillances, administered by the Exchange, as well as cross-market
surveillances administered by FINRA on behalf of the Exchange, which
are designed to detect violations of Exchange rules and applicable
federal securities laws. The Exchange represents that these procedures
are adequate to properly monitor Exchange trading of the Shares in all
trading sessions and to deter and detect violations of Exchange rules
and federal securities laws applicable to trading on the Exchange.
These surveillances generally focus on detecting securities trading
outside their normal patterns, which could be indicative of
manipulative or other violative activity. When such situations are
detected, surveillance analysis follows and investigations are opened,
where appropriate, to review the behavior of

all relevant parties for all relevant trading violations.
    (4) The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares and ETFs with
other markets and other entities that are members of the ISG, and the
Exchange or FINRA, on behalf of the Exchange, or both, may obtain
trading information regarding trading in the Shares and ETFs from such
markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares and ETFs from markets and
other entities that are members of ISG or with which the Exchange has
in place a comprehensive surveillance sharing agreement. In addition,
FINRA, on behalf of the Exchange, is able to access, as needed, trade
information for certain fixed income securities held by a Fund reported
to FINRA's Trade Reporting and Compliance Engine. FINRA also can access
data obtained from the Municipal Securities Rulemaking Board relating
to municipal bond trading activity for surveillance purposes in
connection with trading in the Shares.
    (5) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders in a Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Bulletin will discuss (a) the procedures for
purchases and redemptions of Shares in creation unit aggregations (and
that Shares are not individually redeemable); (b) NYSE Arca Equities
Rule 9.2(a), which imposes a duty of due diligence on its Equity
Trading Permit Holders to learn the essential facts relating to every
customer prior to trading the Shares; (c) the risks involved in trading
the Shares during the Early and Late Trading Sessions when an updated
IOPV will not be calculated or publicly disseminated; (d) how
information regarding the IOPV and the Disclosed Portfolio is
disseminated; (e) the requirement that Equity Trading Permit Holders
deliver a prospectus to investors purchasing newly issued Shares prior
to or concurrently with the confirmation of a transaction; and (f)
trading information. The Bulletin will discuss any exemptive, no-
action, and interpretive relief granted by the Commission from any
rules under the Act. The Bulletin will also disclose that the NAV for
the Shares will be calculated after 4:00 p.m., Eastern Time each
trading day.
    (6) For initial and continued listing, the Funds must be in
compliance with Rule 10A-3 under the Act.\33\
---------------------------------------------------------------------------

    \33\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (7) Under normal market conditions, each Fund will invest at least
80% of net assets in municipal securities whose interest is free from
federal income taxes, including the federal alternative minimum tax.
    (8) The Franklin Liberty Municipal Bond ETF will only buy municipal
securities rated, at the time of purchase, in one of the top four
rating categories by one or more U.S. nationally recognized rating
services (or comparable unrated or short-term rated securities), and
the Fund may not buy defaulted or distressed municipal securities.
    (9) The ETFs in which the Funds may invest will be listed and
traded in the U.S. on registered exchanges.
    (10) Each Fund's portfolio will meet all the requirements set forth
in Commentary .01 to NYSE Arca Equities Rule 8.600 except for those set
forth in Commentary .01(b)(1).
    (11) Under normal market conditions, except for periods of high
cash inflows or outflows, each Fund will satisfy the following
criteria: (i) Each Fund will have a minimum of 35 Municipal Securities
holdings; (ii) after a Fund has at least $100 million in assets, it
will have a minimum of 75 Municipal Securities holdings; (iii) with
respect to 75% of each Fund's total assets, no single Municipal
Securities issuer will account for more than 3% of the weight of a
Fund's portfolio; for the remaining portion of each Fund's assets, no
single Municipal Securities issuer will account for more than 6% of the
weight of a Fund's portfolio; (iv) each Fund will limit its investments
in Municipal Securities of any one state to 15% of a Fund's total
assets and will be diversified among issuers in at least 10 states; and
(v) each Fund will limit its investments in Municipal Securities in any
single sector to 25% of a Fund's total assets.
    (12) Each Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
consistent with Commission guidance. Each 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 a Fund's net assets are held
in illiquid assets. Illiquid assets include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
    (13) Each Fund's investments will be consistent with its investment
objective and will not be used to provide multiple returns of a
benchmark or to produce leveraged returns.
    The Exchange also 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) applicability of Exchange listing rules specified in the filing
shall constitute continued listing requirements for listing the Shares
of a Fund on the Exchange.
    The issuer has represented to the Exchange that it will advise the
Exchange of any failure by a Fund to comply with the continued listing
requirements, and, pursuant to its obligations under Section 19(g)(1)
of the Act, the Exchange will monitor for compliance with the continued
listing requirements.\34\ If a Fund is not in compliance with the
applicable listing requirements, the Exchange will commence delisting
procedures under NYSE Arca Equities Rule 5.5(m).
---------------------------------------------------------------------------

    \34\ The Commission notes that certain other proposals for the
listing and trading of Managed Fund Shares include a representation
that the exchange will ``surveil'' for compliance with the continued
listing requirements. See, e.g., Securities Exchange Act Release No.
78005 (Jun. 7, 2016), 81 FR 38247 (Jun. 13, 2016) (SR-BATS-2015-
100). In the context of this representation, it is the Commission's
view that ``monitor'' and ``surveil'' both mean ongoing oversight of
a fund's compliance with the continued listing requirements.
Therefore, the Commission does not view ``monitor'' as a more or
less stringent obligation than ``surveil'' with respect to the
continued listing requirements.
---------------------------------------------------------------------------

    This approval order is based on all of the Exchange's
representations, including those set forth above and in the Notice, and
the Exchange's description of the Funds. The Commission notes that the
Funds and the Shares must comply with the requirements of NYSE Arca
Equities Rule 8.600 to be listed and traded on the Exchange.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \35\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \35\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\36\ that the proposed rule change (SR-NYSEArc-2017-48), as
modified by Amendment No. 1 thereto, be, and it hereby is, approved.
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    \36\ 15 U.S.C. 78s(b)(2)

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    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
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    \37\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2017-12043 Filed 6-9-17; 8:45 am]
 BILLING CODE 8011-01-P