[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)]
[Proposed Rules]
[Pages 81021-81023]
[FR Doc No: 2016-27310]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2016-9384; Directorate Identifier 2016-NM-154-AD]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

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
certain The Boeing Company Model 777-300ER series airplanes. This
proposed AD was prompted by a report that certain galley tripod mount
assemblies were not connected to the tie rods in the overhead support
structure. This proposed AD would require an inspection of certain
galleys for the presence of the hardware that connects the tripod mount
assembly to the tie rods in the overhead support structure, and
corrective actions if necessary. We are proposing this AD to address
the unsafe condition on these products.

DATES: We must receive comments on this proposed AD by January 3, 2017.

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.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact Boeing
Commercial Airplanes, Attention: Contractual & Data Services (C&DS),
2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740; telephone
562-797-1717; Internet https://www.myboeingfleet.com. You may view this
referenced service information at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>. It is also
available on the internet at http://www.regulations.gov by searching
for and locating Docket No. FAA-2016-9384.

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-2016-
9384; 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 proposed AD, the regulatory evaluation, any comments
received, and other information. The street address for the Docket
Office (phone:<PHONE_NUMBER>) is in the ADDRESSES section. Comments will
be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Eric Brown, Aerospace Engineer, Cabin
Safety and Environmental Systems Branch, ANM-150S, FAA, Seattle
Aircraft Certification Office (ACO), 1601 Lind Avenue SW., Renton, WA
98057-3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
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-2016-9384;
Directorate Identifier 2016-NM-154-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD 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 we
receive about this proposed AD.

Discussion

    We have received a report that the T53 and T52 tie rods to the
tripod mount assembly in the A2 and A3 galleys were found unattached
during a routine production inspection of certain airplanes before
delivery. The cause was determined to be a change to the galley
installation sequence. This changed installation sequence did not
include a robust method to make sure that the tie rods were attached to
the galley before delivery. Since this unsafe condition was found,
Boeing has implemented a new improved process to ensure that the
hardware that attaches the T53 and T52 tie rods to the tripod mount
assembly in the A2 and A3 galleys is attached. A galley tripod mount
assembly that is unconnected to the tie rods in the overhead support
structure can cause a galley to come loose under a high dynamic load
causing a risk of serious injury to passengers and the blocking of
evacuation routes.

Related Service Information Under 1 CFR Part 51

    We reviewed Boeing Alert Service Bulletin 777-25A0677, dated April
25,

2016. The service information describes procedures for doing an
inspection of the area above the A2 and A3 galleys to make sure the
hardware (i.e., pin assembly or bolt assembly) that connects the tripod
mount assembly to the applicable T53 and T52 tie rods is installed; and
corrective actions. 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

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

Proposed AD Requirements

    This proposed AD would require accomplishing the actions specified
in the service information described previously, except as discussed
under ``Differences Between this Proposed AD and the Service
Information.'' For information on the procedures and compliance times,
see this service information at http://www.regulations.gov by searching
for and locating Docket No. FAA-2016-9384.
    The phrase ``corrective actions'' is used in this proposed AD.
Corrective actions correct or address any condition found. Corrective
actions in an AD could include, for example, repairs.

Differences Between This Proposed AD and the Service Information

    This proposed AD requires a detailed inspection for specific
hardware instead of the general visual inspection specified in Boeing
Alert Service Bulletin 777-25A0677, dated April 25, 2016.

Costs of Compliance

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

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
               Action                         Labor cost            Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Inspection.........................  1 work-hour x $85 per hour               $0             $85            $340
                                      = $85.
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    We have received no definitive data that would enable us to provide
cost estimates for the on-condition actions specified in this proposed
AD.
    According to the manufacturer, some of the costs of this proposed
AD may be covered under warranty, thereby reducing the cost impact on
affected individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all available costs in our
cost estimate.

Authority for This Rulemaking

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

Regulatory Findings

    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):

    The Boeing Company: Docket No. FAA-2016-9384; Directorate
Identifier 2016-NM-154-AD.

(a) Comments Due Date

    We must receive comments by January 3, 2017.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to The Boeing Company Model 777-300ER series
airplanes, certificated in any category, as identified in Boeing
Alert Service Bulletin 777-25A0677, dated April 25, 2016.

(d) Subject

    Air Transport Association (ATA) of America Code 25, Equipment/
furnishings.

(e) Unsafe Condition

    This AD was prompted by a report that certain galley tripod
mount assemblies were not attached to the tie rods in the overhead
support structure. We are issuing this AD to detect and correct an
unconnected galley tripod mount assembly to the tie rods in the
overhead support structure, which can cause a galley to come loose
under a high dynamic load causing a risk of serious injury to
passengers and the blocking of evacuation routes.

(f) Compliance

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

(g) Inspection and Corrective Actions

    Within 12 months after the effective date of this AD: Do a
detailed inspection of the area above the A2 and A3 galleys to make
sure the hardware (i.e., pin assembly or bolt assembly) that
connects the tripod mount assembly to the applicable T53 and T52 tie
rods is installed, and do all applicable corrective actions, in
accordance with the Accomplishment Instructions of Boeing Alert
Service Bulletin 777-25A0677, dated April 25, 2016. Do all
applicable corrective actions before further flight.

(h) Definition of Detailed Inspection

    For the purposes of this AD, a detailed inspection is an
intensive examination of a specific item, installation, or assembly
to detect damage, failure, or irregularity. Available lighting is
normally supplemented with a direct source of good lighting at an
intensity deemed appropriate. Inspection aids such as mirror,
magnifying lenses, etc., may be necessary. Surface cleaning and
elaborate procedures may be required.

(i) Alternative Methods of Compliance (AMOCs)

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

(j) Related Information

    (1) For more information about this AD, contact Eric Brown,
Aerospace Engineer, Cabin Safety and Environmental Systems Branch,
ANM-150S, FAA, Seattle Aircraft Certification Office (ACO), 1601
Lind Avenue SW., Renton, WA 98057-3356; phone:<PHONE_NUMBER>; fax:
425-917-6590; email<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Contractual & Data Services
(C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740;
telephone<PHONE_NUMBER>; Internet https://www.myboeingfleet.com. You
may view this referenced service information at the FAA, Transport
Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For
information on the availability of this material at the FAA, call
425-227-1221.

    Issued in Renton, Washington, on November 2, 2016.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2016-27310 Filed 11-16-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 120 (Tuesday, June 23, 2015)]
[Notices]
[Pages 36008-36013]
[FR Doc No: 2015-15337]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 31677; 812-14325]

American Funds Insurance Series, et al.; Notice of Application

June 17, 2015.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 12(d)(1)(J)
of the Investment Company Act of 1940 (the ``Act'') for an exemption
from sections 12(d)(1)(A) and (B) of the Act, and under sections 6(c)
and 17(b) of the Act for an exemption from sections 17(a)(1) and (2) of
the Act.

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Summary of the Application: The requested order would permit certain
registered management investment companies to acquire shares of certain
registered open-end management investment companies that are outside
the same group of investment companies as the acquiring investment
companies.

Applicants: American Funds Insurance Series (the ``Trust''), Capital
Research and Management Company (``Capital Research'' or the
``Adviser''),\1\ and American Funds Distributors, Inc. (the
``Distributor'').
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    \1\ All references to the term ``Adviser'' herein include
successors-in-interest to Capital Research. Successors-in-interest
are limited to any entity resulting from a reorganization of Capital
Research into another jurisdiction or a change in the type of
business organization.

Filing Dates: The application was filed on June 27, 2014 and amended on
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May 7, 2015.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests

should be received by the Commission by 5:30 p.m. on July 13, 2015, and
should be accompanied by proof of service on applicants, in the form of
an affidavit or, for lawyers, a certificate of service. Pursuant to
rule 0-5 under the Act, hearing requests should state the nature of the
writer's interest, any facts bearing upon the desirability of a hearing
on the matter, the reason for the request, and the issues contested.
Persons who wish to be notified of a hearing may request notification
by writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street NE., Washington, DC 20549-1090. Applicants: Paul F. Roye, Esq.
and Michael J. Triessl, Esq., Capital Research and Management Company,
333 South Hope Street, Los Angeles, CA 90071.

FOR FURTHER INFORMATION CONTACT: Kay-Mario Vobis, Senior Counsel, at
(202) 551-6728, or Daniele Marchesani, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Chief Counsel's Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. The Trust is an open-end management investment company
registered under the Act and organized as a Massachusetts business
trust. The Trust is comprised of separate series, each of which may be
an Underlying Fund (as defined below), pursuing distinct investment
objectives and strategies. Capital Research is a Delaware corporation
and is registered as an investment adviser under the Investment
Advisers Act of 1940 (``Advisers Act'') and serves as investment
adviser to each Underlying Fund. The Distributor is a California
corporation and is registered as a broker-dealer under the Securities
Exchange Act of 1934 (the ``Exchange Act''). The Distributor serves as
distributor for the shares of the Underlying Funds.
    2. Applicants request an exemption to permit registered management
investment companies that operate as a ``fund of funds'' and that are
not part of the same ``group of investment companies,'' within the
meaning of section 12(d)(1)(G)(ii) of the Act, as the Trust
(``Unrelated Funds of Funds'') to acquire shares of current or future
separate series of the Trust (``Underlying Funds'') \2\ in excess of
the limits in section 12(d)(1)(A) of the Act, and to permit Underlying
Funds, any principal underwriter for an Underlying Fund, and any broker
or dealer registered under the Exchange Act (``Broker'') to sell shares
of an Underlying Fund to an Unrelated Fund of Funds in excess of the
limits in section 12(d)(1)(B) of the Act. Applicants are also
requesting relief from sections 17(a)(1) and (2) to permit an
Underlying Fund to sell its shares and to redeem its shares from
Unrelated Funds of Funds that own 5% or more of the shares of an
Underlying Fund. Applicants request that the relief apply to: (a) Each
registered open-end management investment company or series thereof
that currently or subsequently is part of the same ``group of
investment companies,'' within the meaning of section 12(d)(1)(G)(ii)
of the Act, as the Trust, and that is advised by Capital Research or
any entity controlling, controlled by, or under common control with
Capital Research (such advisers are included in the term ``Adviser''
and such registered open-end management investment companies or their
series are included in the term ``Underlying Funds''); (b) each
Unrelated Fund of Funds that enters into a Participation Agreement (as
defined below) with an Underlying Fund to purchase shares of the
Underlying Fund; and (c) any principal underwriter to an Underlying
Fund or Broker selling shares of an Underlying Fund.\3\
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    \2\ As of the date of the application, the Underlying Funds
include the following series of the Trust: Asset Allocation Fund;
Blue Chip Income and Growth Fund; Bond Fund; Capital Income Builder;
Cash Management Fund; Global Bond Fund; Global Growth Fund; Global
Growth and Income Fund; Global Small Capitalization Fund; Growth
Fund; Global Balanced Fund; Growth-Income Fund; High-Income Bond
Fund; International Fund; International Growth and Income Fund;
Managed Risk Asset Allocation Fund; Managed Risk Blue Chip Income
and Growth Fund; Managed Risk Growth Fund; Managed Risk Growth-
Income Fund; Managed Risk International Fund; Mortgage Fund; New
World Fund; and U.S. Government/AAA-Rated Securities Fund. In
instances where an Unrelated Fund of Funds acquires shares of a
Managed Risk Fund (as defined below), the term ``Underlying Fund''
includes both the Managed Risk Fund as well as its respective
Managed Risk Acquired Fund (as defined below). The term ``Underlying
Fund'' also includes any Managed Risk Acquired Fund to the extent
that an Unrelated Fund of Funds invests directly in the Managed Risk
Acquired Fund in reliance on the requested relief.
    \3\ All entities that currently intend to rely on the requested
order are named as applicants. Any other entity that relies on the
order in the future will comply with the terms and conditions of the
application. An Unrelated Fund of Funds may rely on the requested
order only to invest in an Underlying Fund and not in any other
registered investment company.
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    3. Certain Underlying Funds may currently or in the future operate
pursuant to a master-feeder structure or pursuant to a Managed Risk
Fund Structure (defined below). Each Underlying Fund operating pursuant
to a master-feeder structure will operate in compliance with section
12(d)(1)(E) of the Act. Each Underlying Fund operating pursuant to a
Managed Risk Fund Structure \4\ will comply with all provisions of
section 12(d)(1)(E), including paragraph (ii), except as is necessary
to permit its investment in the Managed Risk Strategy Component
(defined below) to pursue its objectives.\5\
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    \4\ Each Managed Risk Fund operates pursuant to Section
12(d)(1)(G) and the relief provided by rule 12d1-2 as well as the
further relief granted by the Commission to the Trust from the
restrictions under rule 12d1-2(a), which permits series of the Trust
to invest in hedging instruments that would not be deemed securities
within the meaning of Section 2(a)(36) of the Act.
    \5\ An Unrelated Fund of Funds may not rely on the requested
order to invest in an Underlying Fund that serves as a feeder fund
unless the Underlying Fund is part of the same ``group of investment
companies,'' within the meaning of section 12(d)(1)(G)(ii) of the
Act, as its corresponding master fund (each, a ``Master Fund''). As
defined in the application, a ``Master Fund'' is not an ``Underlying
Fund.'' Similarly, an Unrelated Fund of Funds may not rely on the
requested order to invest in an Underlying Fund that is a Managed
Risk Fund unless the Managed Risk Fund and the fund in which it
invests (the ``Managed Risk Acquired Fund'') have the same
investment adviser and are part of the same ``group of investment
companies.''
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    4. Applicants represent that the ``Managed Risk Fund Structure'' is
an integrated two-tier fund structure that is substantially similar to
a master-feeder structure. Like the feeder fund in a master-feeder
structure, the top-tier fund in a Managed Risk Fund Structure (the
Managed Risk Fund) invests its assets in only one other mutual fund
(the Managed Risk Acquired Fund). Applicants state that the one
difference between the master-feeder structure and the Managed Risk
Fund Structure is that, while a feeder fund only invests in a master
fund, a Managed Risk Fund may also invest in cash, cash equivalents,
and certain hedging instruments in connection with a risk-management
strategy that is specifically designed to reduce the volatility of the
Managed Risk Acquired Fund and the risk of large net asset value
declines (the ``Managed Risk Strategy Component'').\6\
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    \6\ The Managed Risk Strategy Component of each Managed Risk
Fund is executed by Milliman Financial Risk Management LLC
(``Milliman''), a Delaware LLC, as a sub-adviser to that Managed
Risk Fund. No Unrelated Fund of Funds investing in a Managed Risk
Fund will be advised or sub-advised by Milliman or any other sub-
adviser to that Managed Risk Fund (or by any person directly or
indirectly controlling, controlled by, or under common control with
Milliman or such other sub-adviser).

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    5. Each Unrelated Fund of Funds will be advised by an investment
adviser, within the meaning of section 2(a)(20)(A) of the Act, that is
registered as an investment adviser under the Advisers Act (an
``Unrelated Fund of Funds Adviser''). An Unrelated Fund of Funds or its
Unrelated Fund of Funds Adviser may contract with an investment adviser
that meets the definition of section 2(a)(20)(B) of the Act (an
``Unrelated Fund of Funds Sub-Adviser''). Applicants state that
Unrelated Funds of Funds will be interested in using the Underlying
Funds as part of their overall investment strategy.

Applicants' Legal Analysis

A. Section 12(d)(1)

    1. Section 12(d)(1)(A) of the Act, in relevant part, prohibits a
registered investment company from acquiring shares of an investment
company if the securities represent more than 3% of the total
outstanding voting stock of the acquired company, more than 5% of the
total assets of the acquiring company, or, together with the securities
of any other investment companies, more than 10% of the total assets of
the acquiring company. Section 12(d)(1)(B) of the Act prohibits a
registered open-end investment company, its principal underwriter, and
any Broker from selling the investment company's shares to another
investment company if the sale will cause the acquiring company to own
more than 3% of the acquired company's voting stock, or if the sale
will cause more than 10% of the acquired company's voting stock to be
owned by investment companies generally.
    2. Section 12(d)(1)(J) of the Act provides that the Commission may
exempt any person, security, or transaction, or any class or classes of
persons, securities or transactions, from any provision of section
12(d)(1) if the exemption is consistent with the public interest and
the protection of investors. Applicants seek an exemption under section
12(d)(1)(J) of the Act to permit Unrelated Funds of Funds to acquire
shares of the Underlying Funds in excess of the limits in section
12(d)(1)(A), and an Underlying Fund, any principal underwriter for an
Underlying Fund, and any Broker to sell shares of an Underlying Fund to
an Unrelated Fund of Funds in excess of the limits in section
12(d)(1)(B) of the Act.
    3. Applicants state that the terms and conditions of the proposed
arrangement will adequately address the policy concerns underlying
sections 12(d)(1)(A) and (B), which include concerns about undue
influence by a fund of funds over underlying funds, excessive layering
of fees, and overly complex fund structures. Accordingly, applicants
believe that the requested exemption is consistent with the public
interest and the protection of investors.
    4. Applicants believe that neither an Unrelated Fund of Funds nor
an Unrelated Fund of Funds Affiliate \7\ would be able to exert undue
influence over the Underlying Funds.\8\ To limit the control that an
Unrelated Fund of Funds may have over an Underlying Fund, applicants
propose a condition prohibiting the Unrelated Fund of Funds Adviser,
any person controlling, controlled by or under common control with the
Unrelated Fund of Funds Adviser, and any investment company or issuer
that would be an investment company but for section 3(c)(1) or 3(c)(7)
of the Act that is advised or sponsored by the Unrelated Fund of Funds
Adviser or any person controlling, controlled by or under common
control with the Unrelated Fund of Funds Adviser (the ``Unrelated Fund
of Funds Advisory Group'') from controlling (individually or in the
aggregate) an Underlying Fund within the meaning of section 2(a)(9) of
the Act. The same prohibition would apply to the Unrelated Fund of
Funds Sub-Adviser, any person controlling, controlled by or under
common control with the Unrelated Fund of Funds Sub-Adviser, and any
investment company or issuer that would be an investment company but
for section 3(c)(1) or 3(c)(7) of the Act (or portion of such
investment company or issuer) advised or sponsored by the Unrelated
Fund of Funds Sub-Adviser or any person controlling, controlled by, or
under common control with the Unrelated Fund of Funds Sub-Adviser (the
``Unrelated Fund of Funds Sub-Advisory Group''). Applicants propose
other conditions to limit the potential for undue influence over the
Underlying Funds, including that no Unrelated Fund of Funds or
Unrelated Fund of Funds Affiliate (except to the extent it is acting in
its capacity as an investment adviser to an Underlying Fund) will cause
an Underlying Fund to purchase a security in an offering of securities
during the existence of any underwriting or selling syndicate of which
a principal underwriter is an Underwriting Affiliate (``Affiliated
Underwriting''). An ``Underwriting Affiliate'' is a principal
underwriter in any underwriting or selling syndicate that is an
officer, director, member of an advisory board, investment adviser,
sub-adviser or employee of the Unrelated Fund of Funds, or a person of
which any such officer, director, member of an advisory board,
investment adviser, sub-adviser or employee is an affiliated person. An
Underwriting Affiliate does not include any person whose relationship
to an Underlying Fund is covered by section 10(f) of the Act.
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    \7\ An ``Unrelated Fund of Funds Affiliate'' is defined as the
Unrelated Fund of Funds Adviser, Unrelated Fund of Funds Sub-
Adviser, a promoter, or a principal underwriter of an Unrelated Fund
of Funds, and any person controlling, controlled by, or under common
control with any of those entities. An ``Underlying Fund Affiliate''
is defined as an investment adviser, sponsor, promoter or principal
underwriter of an Underlying Fund (or its respective Master Fund),
and any person controlling, controlled by or under common control
with any of those entities.
    \8\ For purposes of the investment calculations required by
Conditions 1, 4, 6, 7, and 8 in the application with respect to
investments in an Underlying Fund, each Participation Agreement
(defined below) will require that an Unrelated Fund of Funds (or
with the members of the Unrelated Fund of Funds Advisory Group and
the Unrelated Fund of Funds Sub-Advisory Group, as applicable)
separately calculate its investments in each Managed Risk Fund and
the respective Managed Risk Acquired Fund. In calculating its
investments in the Managed Risk Acquired Fund, however, an Unrelated
Fund of Funds (or with the members of the Unrelated Fund of Funds
Advisory Group and the Unrelated Fund of Funds Sub-Advisory Group,
as applicable) will aggregate its direct and indirect (through a
Managed Risk Fund) investments in the Managed Risk Acquired Fund.
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    5. Applicants do not believe that the proposed arrangement will
involve excessive layering of fees. The board of directors or trustees
(the ``Board'') of each Unrelated Fund of Funds, including a majority
of the directors or trustees who are not ``interested persons'' (within
the meaning of section 2(a)(19) of the Act) (the ``Independent
Trustees''), will find that the advisory fees charged under such
advisory contract are based on services provided that will be in
addition to, rather than duplicative of, the services provided under
the advisory or management agreement of any Underlying Fund in which
the Unrelated Fund of Funds may invest. In addition, an Unrelated Fund
of Funds Adviser will waive fees otherwise payable to it by the
Unrelated Fund of Funds in an amount at least equal to any compensation
(including fees received pursuant to any plan adopted by an Underlying
Fund under rule 12b-1 under the Act) received from an Underlying Fund
by the Unrelated Fund of Funds Adviser, or an affiliated person of the
Unrelated Fund of Funds Adviser, other than any advisory fees paid to
the Unrelated Fund of Funds Adviser or its affiliated person by the
Underlying Fund, in connection with

the investment by the Unrelated Fund of Funds in the Underlying Fund.
Applicants also state that with respect to registered separate accounts
that invest in an Unrelated Fund of Funds, no sales load will be
charged at the Unrelated Fund of Funds level or at the Underlying Fund
level.\9\ Other sales charges and service fees, as defined in Rule 2830
of the Conduct Rules of the NASD (``NASD Conduct Rules''), if any, will
only be charged at the Unrelated Fund of Funds level or at the
Underlying Fund level, not both. With respect to other investments in
an Unrelated Fund of Funds, any sales charges and/or service fees
charged with respect to shares of the Unrelated Fund of Funds will not
exceed the limits applicable to a fund of funds as set forth in NASD
Conduct Rule 2830.\10\
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    \9\ Applicants represent that each Unrelated Fund of Funds that
enters into a Participation Agreement (as defined below) will
represent therein that no insurance company sponsoring a registered
separate account funding variable insurance contracts will be
permitted to invest in the Unrelated Fund of Funds unless the
insurance company has certified to the Unrelated Fund of Funds that
the aggregate of all fees and charges associated with each contract
that invests in the Unrelated Fund of Funds, including fees and
charges at the separate account, Unrelated Fund of Funds and
Underlying Fund levels, will be reasonable in relation to the
services rendered, the expenses expected to be incurred and the
risks assumed by the insurance company.
    \10\ Any references to NASD Conduct Rule 2830 include any
successor or replacement FINRA Rule to NASD Conduct Rule 2830.
---------------------------------------------------------------------------

    6. Applicants submit that the proposed arrangement will not create
an overly complex fund structure. Applicants note that no Underlying
Fund will acquire securities of any other investment company or company
relying on section 3(c)(1) or 3(c)(7) of the Act in excess of the
limits contained in section 12(d)(1)(A) of the Act, except in certain
circumstances identified in condition 12 below.
    7. With respect to Underlying Funds that operate using a Managed
Risk Fund Structure, applicants believe that having an Unrelated Fund
of Funds as an investor will also not raise concerns about complex
structures, undue influence or the layering of fees. Applicants note
that an Unrelated Fund of Funds investing in a Managed Risk Fund could
technically result in a three-tier arrangement. However, given that the
Managed Risk Funds effectively operate as an integrated two-tier fund
structure that is substantially similar to a master-feeder structure,
and given the transparency of the Managed Risk Fund Structure,
including the fact that each Managed Risk Fund may invest in only one
Managed Risk Acquired Fund and the Managed Risk Strategy Component,
applicants do not believe this will result in an overly complex
arrangement. Applicants also have agreed to certain representations to
further ensure that investments in the Managed Risk Fund Structure do
not raise concerns about complex structures, undue influence or the
layering of fees.\11\
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    \11\ In particular, applicants represent that: (1) The Adviser
will serve as the investment adviser to both the Managed Risk Fund
and the Managed Risk Acquired Fund in which it invests; (2) the
Managed Risk Fund will invest only in one Managed Risk Acquired Fund
and the Managed Risk Strategy Component; (3) other than to permit
its investment in the Managed Risk Strategy Component, the Managed
Risk Fund will comply with all of the provisions of section
12(d)(1)(E) of the Act; (4) the hedging instruments purchased in
connection with the Managed Risk Strategy Component will be
purchased solely to assist the Managed Risk Fund in achieving its
investment strategy of stabilizing volatility and providing downside
protection and will not be purchased for speculative purposes; (5)
the Board of the Managed Risk Funds will not authorize the payment
of any investment advisory fee by a Managed Risk Fund to the Adviser
unless it is based on the provision of services that are in addition
to, rather than duplicative of, the services that the Adviser
provides to the Managed Risk Acquired Fund; (6) the Board of the
Managed Risk Funds, including a majority of the Independent
Trustees, will authorize the Adviser to manage volatility and
provide downside protection based only on the portfolio holdings of
the Managed Risk Acquired Fund, consistent with the applicable
Managed Risk Fund's investment objective, and will review the
appropriateness of this authorization at least annually; (7) the
Board will review and approve at least annually the continuing
appropriateness of the operations of each Managed Risk Fund,
including with respect to (i) the Managed Risk Fund's use of
derivatives, (ii) how the Adviser (and any relevant sub-adviser)
assesses and manages risk with respect to the Managed Risk Fund's
use of derivatives; and (iii) whether the Managed Risk Fund's
disclosure of its use of derivatives in its offering documents and
periodic reports is consistent with relevant Commission and staff
guidance; and (8) no Unrelated Fund of Funds may invest in a feeder
fund that is investing in a Managed Risk Fund in reliance on section
12(d)(1)(E) of the Act.
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    8. Applicants also represent that to ensure that Unrelated Funds of
Funds comply with the terms and conditions of the requested exemption
from section 12(d)(1)(A) of the Act, an Unrelated Fund of Funds must
enter into a participation agreement between the Trust, on behalf of
the relevant Underlying Fund, and the Unrelated Funds of Funds
(``Participation Agreement'') before investing in an Underlying Fund in
excess of the limits in section 12(d)(1)(A). The Participation
Agreement will require the Unrelated Fund of Funds to adhere to the
terms and conditions of the requested order. An Unrelated Fund of Funds
may rely on the requested order only to invest in the Underlying Funds
and not in any other registered investment company.

B. Section 17(a)

    1. Section 17(a) of the Act generally prohibits sales or purchases
of securities between a registered investment company and any
affiliated person of the company. Section 2(a)(3) of the Act defines an
``affiliated person'' of another person to include any person 5% or
more of whose outstanding voting securities are directly or indirectly
owned, controlled, or held with power to vote by the other person.
    2. Applicants seek relief from section 17(a) to permit an
Underlying Fund that is an affiliated person of an Unrelated Fund of
Funds because the Unrelated Fund of Funds holds 5% or more of the
Underlying Fund's shares to sell its shares to and redeem its shares
from an Unrelated Fund of Funds. Applicants state that any proposed
transactions directly between an Underlying Fund and an Unrelated Fund
of Funds will be consistent with the policies of each Underlying Fund
and each Unrelated Fund of Funds and the general purposes of the Act.
The Participation Agreement will require any Unrelated Fund of Funds
that purchases shares from an Underlying Fund to represent that the
purchase of shares from the Underlying Fund by the Unrelated Fund of
Funds will be accomplished in compliance with the investment
restrictions of the Unrelated Fund of Funds and will be consistent with
the investment policies set forth in the Unrelated Fund of Funds'
registration statement.
    3. Section 17(b) of the Act authorizes the Commission to grant an
order permitting a transaction otherwise prohibited by section 17(a) if
it finds that (i) the terms of the proposed transaction are fair and
reasonable and do not involve overreaching on the part of any person
concerned; (ii) the proposed transaction is consistent with the
policies of each registered investment company involved; and (iii) the
proposed transaction is consistent with the general purposes of the
Act. Section 6(c) of the Act permits the Commission to exempt any
person or transactions from any provision of the Act if such exemption
is necessary or appropriate in the public interest and consistent with
the protection of investors and the purposes fairly intended by the
policy and provisions of the Act.
    4. Applicants submit that the proposed transactions satisfy the
standards for relief under sections 17(b) and 6(c) of the Act.\12\
Applicants state

that the terms of the transactions are reasonable and fair and do not
involve overreaching. Applicants note that any consideration paid for
the purchase or redemption of shares directly from an Underlying Fund
will be based on the net asset value of the Underlying Fund. Applicants
state that any proposed transactions directly between an Underlying
Fund and an Unrelated Fund of Funds will be consistent with the
policies of each Underlying Fund and each Unrelated Fund of Funds and
the general purposes of the Act.
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    \12\ Applicants acknowledge that receipt of compensation by (a)
an affiliated person of an Unrelated Fund of Funds, or an affiliated
person of such person, for the purchase by the Unrelated Fund of
Funds of shares of an Underlying Fund or (b) an affiliated person of
an Underlying Fund, or an affiliated person of such person, for the
sale by the Underlying Fund of its shares to an Unrelated Fund of
Funds may be prohibited by Section 17(e)(1) of the Act. The
Participation Agreement will also include this acknowledgement.
---------------------------------------------------------------------------

Applicants' Conditions

    Applicants agree that any order granting the requested relief will
be subject to the following conditions:
    1. The members of an Unrelated Fund of Funds Advisory Group will
not control (individually or in the aggregate) an Underlying Fund (or
its respective Master Fund) within the meaning of section 2(a)(9) of
the Act. The members of an Unrelated Fund of Funds Sub-Advisory Group
will not control (individually or in the aggregate) an Underlying Fund
(or its respective Master Fund) within the meaning of section 2(a)(9)
of the Act. If, as a result of a decrease in the outstanding voting
securities of an Underlying Fund, the Unrelated Fund of Funds Advisory
Group or the Unrelated Fund of Funds Sub-Advisory Group, each in the
aggregate, becomes a holder of more than 25 percent of the outstanding
voting securities of an Underlying Fund, it (except for any member of
the Unrelated Fund of Funds Advisory Group or Unrelated Fund of Funds
Sub-Advisory Group that is a separate account funding variable
insurance contracts) will vote its shares of the Underlying Fund in the
same proportion as the vote of all other holders of the Underlying
Fund's shares. A registered separate account funding variable insurance
contracts will seek voting instructions from its contract holders and
will vote its shares in accordance with the instructions received and
will vote those shares for which no instructions were received in the
same proportion as the shares for which instructions were received. An
unregistered separate account funding variable insurance contracts will
either (i) vote its shares of the Underlying Fund in the same
proportion as the vote of all other holders of the Underlying Fund's
shares; or (ii) seek voting instructions from its contract holders and
vote its shares in accordance with the instructions received and vote
those shares for which no instructions were received in the same
proportion as the shares for which instructions were received.
    2. No Unrelated Fund of Funds or Unrelated Fund of Funds Affiliate
will cause any existing or potential investment by the Unrelated Fund
of Funds in shares of an Underlying Fund to influence the terms of any
services or transactions between the Unrelated Fund of Funds or an
Unrelated Fund of Funds Affiliate and the Underlying Fund (or its
respective Master Fund) or an Underlying Fund Affiliate.
    3. The board of directors or trustees of an Unrelated Fund of
Funds, including a majority of the Independent Trustees, will adopt
procedures reasonably designed to ensure that the Unrelated Fund of
Funds Adviser and any Unrelated Fund of Funds Sub-Adviser(s) are
conducting the investment program of the Unrelated Fund of Funds
without taking into account any consideration received by the Unrelated
Fund of Funds or an Unrelated Fund of Funds Affiliate from an
Underlying Fund (or its respective Master Fund) or an Underlying Fund
Affiliate in connection with any services or transactions.
    4. Once an investment by an Unrelated Fund of Funds in the
securities of an Underlying Fund exceeds the limit in section
12(d)(1)(A)(i) of the Act, the Board of the Underlying Fund (or its
respective Master Fund), including a majority of the Independent
Trustees, will determine that any consideration paid by the Underlying
Fund (or its respective Master Fund) to the Unrelated Fund of Funds or
an Unrelated Fund of Funds Affiliate in connection with any services or
transactions: (a) Is fair and reasonable in relation to the nature and
quality of the services and benefits received by the Underlying Fund
(or its respective Master Fund); (b) is within the range of
consideration that the Underlying Fund (or its respective Master Fund)
would be required to pay to another unaffiliated entity in connection
with the same services or transactions; and (c) does not involve
overreaching on the part of any person concerned. This condition does
not apply with respect to any services or transactions between an
Underlying Fund (or its respective Master Fund) and its investment
adviser(s) or any person controlling, controlled by, or under common
control with such investment adviser(s).
    5. No Unrelated Fund of Funds or Unrelated Fund of Funds Affiliate
(except to the extent it is acting in its capacity as an investment
adviser to an Underlying Fund (or its respective Master Fund)) will
cause an Underlying Fund (or its respective Master Fund) to purchase a
security in any Affiliated Underwriting.
    6. The Board of an Underlying Fund (or of its respective Master
Fund), including a majority of the Independent Trustees, will adopt
procedures reasonably designed to monitor any purchases of securities
by the Underlying Fund (or its respective Master Fund) in an Affiliated
Underwriting once an investment by an Unrelated Fund of Funds in the
securities of the Underlying Fund exceeds the limit of section
12(d)(1)(A)(i) of the Act, including any purchases made directly from
an Underwriting Affiliate. The Board of the Underlying Fund (or its
respective Master Fund) will review these purchases periodically, but
no less frequently than annually, to determine whether the purchases
were influenced by the investment by the Unrelated Fund of Funds in
shares of the Underlying Fund. The Board of the Underlying Fund (or its
respective Master Fund) shall consider, among other things, (i) whether
the purchases were consistent with the investment objectives and
policies of the Underlying Fund (or its respective Master Fund); (ii)
how the performance of securities purchased in an Affiliated
Underwriting compares to the performance of comparable securities
purchased during a comparable period of time in underwritings other
than Affiliated Underwritings or to a benchmark such as a comparable
market index; and (iii) whether the amount of securities purchased by
the Underlying Fund (or its respective Master Fund) in Affiliated
Underwritings and the amount purchased directly from an Underwriting
Affiliate have changed significantly from prior years. The Board of the
Underlying Fund shall take any appropriate actions based on its review,
including, if appropriate, the institution of procedures designed to
ensure that purchases of securities in Affiliated Underwritings are in
the best interest of shareholders.
    7. Each Underlying Fund (or its respective Master Fund) shall
maintain and preserve permanently in an easily accessible place a
written copy of the procedures described in the preceding condition,
and any modifications to such procedures, and shall maintain and
preserve for a period of not less than six years from the end of the
fiscal year in which any purchase in an Affiliated Underwriting
occurred, the first two years in an easily accessible

place, a written record of each purchase of securities in Affiliated
Underwritings once an investment by an Unrelated Fund of Funds in the
securities of an Underlying Fund exceeds the limit in section
12(d)(1)(A)(i) of the Act, setting forth from whom the securities were
acquired, the identity of the underwriting syndicate's members, the
terms of the purchase and the information or materials upon which the
Board's determinations were made.
    8. Before investing in shares of an Underlying Fund in excess of
the limits in section 12(d)(1)(A), each Unrelated Fund of Funds and
Underlying Fund will execute a Participation Agreement stating, without
limitation, that their boards of directors or trustees and their
investment advisers understand the terms and conditions of the order
and agree to fulfill their responsibilities under the order. At the
time of its investment in shares of an Underlying Fund in excess of the
limit in section 12(d)(1)(A)(i), an Unrelated Fund of Funds will notify
the Underlying Fund of the investment. At such time, the Unrelated Fund
of Funds will also transmit to the Underlying Fund a list of the names
of each Unrelated Fund of Funds Affiliate and Underwriting Affiliate.
The Unrelated Fund of Funds will notify the Underlying Fund of any
changes to the list of the names as soon as reasonably practicable
after a change occurs. The Underlying Fund and the Unrelated Fund of
Funds will maintain and preserve a copy of the order, the Participation
Agreement and the list with any updated information for the duration of
the investment and for a period of not less than six years thereafter,
the first two years in an easily accessible place.
    9. Prior to approving any advisory contract under section 15 of the
Act, the board of directors or trustees of each Unrelated Fund of
Funds, including a majority of the Independent Trustees, will find that
the advisory fees charged under such advisory contracts are based on
services provided that will be in addition to, rather than duplicative
of, the services provided under the advisory contract(s) of any
Underlying Fund (or its respective Master Fund) in which the Unrelated
Fund of Funds may invest. These findings and their basis will be
recorded fully in the minute books of the appropriate Unrelated Fund of
Funds.
    10. An Unrelated Fund of Funds Adviser will waive fees otherwise
payable to it by the Unrelated Fund of Funds in an amount at least
equal to any compensation (including fees received pursuant to any plan
adopted by an Underlying Fund (or its respective Master Fund) under
rule 12b-1 under the Act) received from an Underlying Fund (or its
respective Master Fund) by the Unrelated Fund of Funds Adviser, or an
affiliated person of the Unrelated Fund of Funds Adviser, other than
any advisory fees paid to the Unrelated Fund of Funds Adviser or its
affiliated person by the Underlying Fund (or its respective Master
Fund), in connection with the investment by the Unrelated Fund of Funds
in the Underlying Fund. Any Unrelated Fund of Funds Sub-Adviser will
waive fees otherwise payable to the Unrelated Fund of Funds Sub-
Adviser, directly or indirectly, by the Unrelated Fund of Funds in an
amount at least equal to any compensation received from any Underlying
Fund (or its respective Master Fund) by the Unrelated Fund of Funds
Sub-Adviser, or an affiliated person of the Unrelated Fund of Funds
Sub-Adviser, other than any advisory fees paid to the Unrelated Fund of
Funds Sub-Adviser or its affiliated person by the Underlying Fund (or
its respective Master Fund), in connection with the investment by the
Unrelated Fund of Funds in the Underlying Fund made at the direction of
the Unrelated Fund of Funds Sub-Adviser. In the event that the
Unrelated Fund of Funds Sub-Adviser waives fees, the benefit of the
waiver will be passed through to the Unrelated Fund of Funds.
    11. With respect to registered separate accounts that invest in an
Unrelated Fund of Funds, no sales load will be charged at the Unrelated
Fund of Funds level or at the Underlying Fund level. Other sales
charges and service fees, as defined in NASD Conduct Rule 2830, if any,
will only be charged at the Unrelated Fund of Funds level or at the
Underlying Fund level, not both. With respect to other investments in
an Unrelated Fund of Funds, any sales charges and/or service fees
charged with respect to shares of the Unrelated Fund of Funds will not
exceed the limits applicable to a fund of funds as set forth in NASD
Conduct Rule 2830.
    12. No Underlying Fund or its respective Master Fund will acquire
securities of any other investment company or company relying on
section 3(c)(1) or 3(c)(7) of the Act in excess of the limits contained
in section 12(d)(1)(A) of the Act, except to the extent that such
Underlying Fund or its respective Master Fund: (a) Acquires such
securities in compliance with section 12(d)(1)(E) of the Act; \13\ (b)
receives securities of another investment company as a dividend or as a
result of a plan of reorganization of a company (other than a plan
devised for the purpose of evading section 12(d)(1) of the Act); or (c)
acquires (or is deemed to have acquired) securities of another
investment company pursuant to exemptive relief from the Commission
permitting such Underlying Fund or its respective Master Fund to: (i)
Acquire securities of one or more investment companies for short-term
cash management purposes, or (ii) engage in inter-fund borrowing and
lending transactions.
---------------------------------------------------------------------------

    \13\ Solely for the purposes of condition 12, the investment by
a Managed Risk Fund in a Managed Risk Acquired Fund will be deemed
to have been made pursuant to section 12(d)(1)(E), notwithstanding
the fact that such arrangement does not comply with section
12(d)(1)(E)(ii).

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Brent J. Fields,
Secretary.
[FR Doc. 2015-15337 Filed 6-22-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 16 (Tuesday, January 26, 2016)]
[Notices]
[Pages 4363-4364]
[FR Doc No: 2016-01490]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2015-0080 Notice 1]

Notice of Receipt of Petition for Decision That Nonconforming
2009 Buell 1125R, Ulysses XB, Lightning XB, and Blast Motorcycles Are
Eligible for Importation

AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).

ACTION: Receipt of petition.

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SUMMARY: This document announces receipt by the National Highway
Traffic Safety Administration (NHTSA) of a petition for a decision that
nonconforming 2009 Buell 1125R, Ulysses XB, Lightning XB, and Blast
motorcycles that were not originally manufactured to comply with all
applicable Federal motor vehicle safety standards (FMVSS), are eligible
for importation into the United States because they are substantially
similar to vehicles that were originally manufactured for sale in the
United States and that were certified by their manufacturer as
complying with the safety standards (the U.S.-certified version of the
2009 Buell 1125R, Ulysses XB, Lightning XB, and Blast motorcycles) and
they are capable of being readily altered to conform to the standards.

DATES: The closing date for comments on the petition is February 25,
2016.

ADDRESSES: Comments should refer to the docket and notice numbers above
and be submitted by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
     Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE., between 9 a.m. and 5 p.m. ET,
Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.
    Instructions: Comments must be written in the English language, and
be no greater than 15 pages in length, although there is no limit to
the length of necessary attachments to the comments. If comments are
submitted in hard copy form, please ensure that two copies are
provided. If you wish to receive confirmation that your comments were
received, please enclose a stamped, self-addressed postcard with the
comments. Note that all comments received will be posted without change
to http://www.regulations.gov, including any personal information
provided. Please see the Privacy Act heading below.
    Privacy Act: Anyone is able to search the electronic form of all
comments received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of 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).
    How to Read Comments submitted to the Docket: You may read the
comments received by Docket Management at the address and times given
above. You may also view the documents from the Internet at http://www.regulations.gov. Follow the online instructions for accessing the
dockets. The docket ID number and title of this notice are shown at the
heading of this document notice. Please note that even after the
comment closing date, we will continue to file relevant information in
the Docket as it becomes available. Further, some people may submit
late comments. Accordingly, we recommend that you periodically search
the Docket for new material.

FOR FURTHER INFORMATION CONTACT: George Stevens, Office of Vehicle
Safety Compliance, NHTSA<PHONE_NUMBER>).

SUPPLEMENTARY INFORMATION:

Background

    Under 49 U.S.C. 30141(a)(1)(A), a motor vehicle that was not
originally manufactured to conform to all applicable FMVSS shall be
refused admission into the United States unless NHTSA has decided that
the motor vehicle is substantially similar to a motor vehicle
originally manufactured for importation into and sale in the United
States, certified under 49 U.S.C. 30115, and of the same model year as
the model of the motor vehicle to be compared, and is capable of being
readily altered to conform to all applicable FMVSS.
    Petitions for eligibility decisions may be submitted by either
manufacturers or importers who have registered with NHTSA pursuant to
49 CFR part 592. As specified in 49 CFR 593.7, NHTSA publishes notice
in the Federal Register of each petition that it receives, and affords
interested persons an opportunity to comment on the petition. At the
close of the comment period, NHTSA decides, on the basis of the
petition and any comments that it has received, whether the vehicle is
eligible for importation. The agency then publishes this decision in
the Federal Register.
    Skytop Rover Co., of Philadelphia, PA (Registered Importer R-06-
343) (Skytop) has petitioned NHTSA to decide whether the subject
nonconforming 2009 Buell motorcycles are eligible for importation into
the United States. The vehicles which Skytop believes are substantially
similar are 2009 Buell motorcycles that were manufactured for sale in
the United States and certified by their manufacturer as conforming to
all applicable FMVSS.
    The petitioner claims that it compared non-U.S. certified 2009
Buell 1125R, Ulysses XB, Lightning XB, and Blast motorcycles to their
U.S.-certified counterparts, and found the vehicles to be substantially
similar with respect to compliance with most FMVSS.
    Skytop submitted information with its petition intended to
demonstrate that the subject non-U.S. certified 2009 Buell motorcycles,
as originally manufactured, conform to many FMVSS in the same manner as
their U.S. certified counterparts, or are capable of being readily
altered to conform to those standards.
    Specifically, the petitioner claims that non-U.S. certified 2009
Buell motorcycles are identical to their U.S.

certified counterparts with respect to compliance with: Standard Nos.
106 Brake Hoses, 111 Rear Visibility, 116 Motor Vehicle Brake Fluids,
119 New Pneumatic Tires for Motorcycles, and 122 Motorcycle Brake
Systems.
    The petitioner further contends that the vehicles are capable of
being readily altered to meet the following standards, in the manner
indicated below:
    Standard No. 108 Lamps, Reflective Devices and Associated
Equipment: replacement of front and rear turn signal lamps, front, rear
and side mounted reflex reflectors, headlamps, rear taillamps, stop
lamps, and license plate lamps with U.S. certified components on
vehicles that are not already so equipped.
    Standard No. 120 Tire selection and Rims for Motor Vehicles Other
Than Passenger Cars: installation of a tire information placard.
    Standard No. 123 Motorcycle Controls and Displays: inspection of
each vehicle and replacement of non-conforming speedometers with U.S.-
model components on vehicles not already so equipped.
    Standard No. 205 Glazing Materials: inspection of each vehicles and
removal of noncompliant glazing or replacement of the glazing with
U.S.-certified components on vehicles not already so equipped.
    The petitioner additionally states that the vehicles meet the
requirements of 49 CFR part 565 VIN Requirements.
    All comments received before the close of business on the closing
date indicated above will be considered, and will be available for
examination in the docket at the above addresses both before and after
that date. To the extent possible, comments filed after the closing
date will also be considered. Notice of final action on the petition
will be published in the Federal Register pursuant to the authority
indicated below.

    Authority: 49 U.S.C. 30141(a) (1(A), (a)(1)(B), and (b)(1); 49
CFR 593.7; delegation of authority at 49 CFR 1.95 and 501.8.

Jeffrey M. Giuseppe,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 2016-01490 Filed 1-25-16; 8:45 am]
BILLING CODE 4910-59-P


[Federal Register Volume 76, Number 65 (Tuesday, April 5, 2011)]
[Notices]
[Page 18750]
[FR Doc No: 2011-8019]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PR11-98-000; Docket No. PR11-99-000; Not Consolidated]

Humble Gas Pipeline Company; Cobra Pipeline Ltd.; Notice of
Baseline Filings

    Take notice that on March 28, 2011, the applicants listed above
submitted a revised baseline filing of their Statement of Operating
Conditions for services provided under section 311 of the Natural Gas
Policy Act of 1978 (``NGPA'').
    Any person desiring to participate in this rate proceeding must
file a motion to intervene or to protest this filing in accordance with
Rules 211 and 214 of the Commission's Rules of Practice and Procedure
(18 CFR 385.211 and 385.214). Protests will be considered by the
Commission in determining the appropriate action to be taken, but will
not serve to make protestants parties to the proceeding. Any person
wishing to become a party must file a notice of intervention or motion
to intervene, as appropriate. Such notices, motions, or protests must
be filed on or before the date as indicated below. Anyone filing an
intervention or protest must serve a copy of that document on the
Applicant. Anyone filing an intervention or protest on or before the
intervention or protest date need not serve motions to intervene or
protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov. Persons unable to file electronically should submit an
original and 7 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on Friday, April 8, 2011.

    Dated: March 30, 2011.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-8019 Filed 4-4-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 81, Number 21 (Tuesday, February 2, 2016)]
[Notices]
[Pages 5470-5472]
[FR Doc No: 2016-01788]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2014-N-1855]

Agency Information Collection Activities; Submission for Office
of Management and Budget Review; Comment Request; Experimental Studies
on Consumer Perceptions of Modified Risk Tobacco Products

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing that a
proposed collection of information has been submitted to the Office of
Management and Budget (OMB) for review and clearance under the
Paperwork Reduction Act of 1995.

DATES: Fax written comments on the collection of information by March
3, 2016.

ADDRESSES: To ensure that comments on the information collection are
received, OMB recommends that written comments be faxed to the Office
of Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer,
FAX:<PHONE_NUMBER>, or emailed to<EMAIL_ADDRESS>All
comments should be identified with the OMB control number 0910-NEW and
title ``Experimental Studies on Consumer Perceptions of Modified Risk
Tobacco Products.'' Also include the FDA docket number found in
brackets in the heading of this document.

FOR FURTHER INFORMATION CONTACT: FDA PRA Staff, Office of Operations,
Food and Drug Administration, 8455 Colesville Rd., COLE-14526, Silver
Spring, MD 20993-0002<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: In compliance with 44 U.S.C. 3507, FDA has
submitted the following proposed collection of information to OMB for
review and clearance.

Experimental Studies on Consumer Perceptions of Modified Risk Tobacco
Products OMB Control Number 0910-NEW

    FDA's Center for Tobacco Products proposes to conduct experimental
studies to develop generalizable scientific knowledge to help inform
its implementation of section 911 of the Federal Food, Drug, and
Cosmetic Act (FD&C Act) (21 U.S.C. 387k), wherein FDA will be
evaluating information submitted to the Agency about how consumers
understand and perceive tobacco products marketed as modified risk
tobacco products (MRTPs). Section 911 of the FD&C Act authorizes FDA to
grant orders to persons to allow the marketing of MRTPs. The term
``modified risk tobacco product'' means any tobacco product that is
sold or distributed for use to reduce harm or the risk of tobacco-
related disease associated with commercially marketed tobacco products.
FDA must issue an order authorizing the marketing of an MRTP if the
Agency determines that the product, as it is actually used by
consumers, will significantly reduce harm and the risk of tobacco-
related disease to individual tobacco users and benefit the health of
the population as a whole taking into account both users of tobacco
products and persons who do not currently use tobacco products (section
911(g)(1) of the FD&C Act).
    FDA may also issue an order authorizing the marketing of an MRTP
that reduces or eliminates exposure to a harmful substance if, among
other requirements, the Agency determines that the order would be
appropriate to promote the public health, the issuance of the order is
expected to benefit the population as a whole taking into account both
users and nonusers of tobacco products, and the existing evidence
demonstrates that a measurable and substantial reduction in morbidity
and mortality among individual tobacco users is reasonably likely to be
shown in subsequent studies (section 911(g)(2) of the FD&C Act). In
addition, section 911 requires that any advertising or labeling
concerning modified risk products enable the public to comprehend the
information concerning modified risk and to understand the relative
significance of such information in the context of total health and in
relation to all of the diseases and health related conditions
associated with the use of tobacco products (section 911(h)(1) of the
FD&C Act). The proposed research will inform the Agency's efforts to
implement the provisions of the FD&C Act related to MRTPs.
    FDA proposes to conduct experimental studies in order to develop
generalizable scientific information to better understand how consumers
perceive and understand these products, how exposure to claims about
modified risk or exposure influence intentions to try or purchase the
product, and how individual characteristics such as current tobacco use
and/or brand loyalty might influence these outcomes. Moreover,
information from the experimental studies may assist FDA to determine
the appropriate methods and

measures for gathering such information from consumers.
    The impact of different claims pertaining to modified risk or
exposure on understanding, perceptions, and use intentions will be
evaluated by conducting a series of three studies that, in turn, will
examine: The impact of claims about cigarette (Study 1) or smokeless
tobacco products (Study 2) among young adult and adult current, former,
or never users of tobacco; and the impact of claims on adolescents
currently using, or susceptible to using, tobacco (Study 3). All three
studies will assess individual-level factors that might influence the
impact of claims on consumer responses, including: Brand loyalty,
tobacco use history and behavior, concerns about health risks, and
openness to new products.
    Across all studies, participants will be randomized to either see
modified risk claims or not (control condition). In Studies 1 and 2,
modified risk claims will be displayed on mock tobacco product packages
and ads. For ethical reasons, adolescents (Study 3) will see modified
risk claims displayed as statements alone, not attached to product
packaging or ads. Consumer reactions to claims will be evaluated by
measuring constructs such as: Understanding of the modified risk
information in the claims, perceptions of harm and risk, beliefs about
the product, quit intentions, and intention to try or purchase the
product.
    In the Federal Register of November 19, 2014 (79 FR 68888), FDA
published a 60-day notice requesting public comment on the proposed
collection of information. Three comments were received, however only
two were PRA related.
    (Comment) One commenter critiqued the inclusion of items assessing
brand loyalty, asserting such constructs have ``no practical utility''
for MRTPA review and is beyond the FDA's statutory authority because it
is not mentioned in the FD&C Act.
    (Response) FDA does not agree. Although concepts such as ``brand
loyalty'' are not specifically mentioned in the FD&C Act, FDA seeks
understanding of how attitudes toward one's preferred brand(s) may
affect perceptions and understanding of modified risk information
(section 911(h)(1)). The goal of the present experiments is to
understand how consumers react to RM and EM claims, in order to inform
FDA's ability to evaluate MRTPAs. Brand loyalty is widely regarded as
an important driver of consumer behavior (Ref. 1). Moreover,
psychological theory and evidence suggests that the source of
information can affect how that information is processed--including
whether or not it is perceived as believable and is persuasive (Ref.
2). Thus, consumers' brand attitudes are highly relevant to
understanding how they interpret and respond to claims made by that
brand. To omit this possible influence from our analyses would, in our
assessment, limit our ability to fully understand consumer perceptions
of MRTPs.
    (Comment) One commenter suggested that to assess the variable
``purchase interest,'' FDA should assign a hypothetical price to the
product being studied.
    (Response) FDA acknowledges that price plays an important role in
consumers' purchasing decisions. However, examination of the role of
price is beyond the scope of the present studies. The experimental
design of this study will enable comparisons between experimental
conditions on intentions to use the product; thus, rather than
evaluating absolute levels of interest, results will examine relative
levels of interest across experimental conditions. Thus, the measure of
intentions to use the product will assess consumer interest in the
product without regard to cost.
    (Comment) One commenter noted that Study 1 proposes to focus on
conventional cigarettes and asks how FDA proposes to address the issue
of novel devices/products when considering consumer perceptions?
    (Response) FDA agrees that the current studies are not designed to
assess interest in novel devices/products. Addressing questions related
to consumer perceptions of novel devices/products, and reactions to
claims about those products, is beyond the scope of the current set of
studies.
    (Comment) One commenter asked for specificity regarding how FDA
will define susceptibility to tobacco use among the adolescents in
Study 3.
    (Response) FDA plans to use items from Pierce and colleagues (1996)
to identify adolescents who are susceptible to using tobacco. These
items are: (1) Do you think that you will smoke a cigarette soon? (2)
Do you think you will smoke a cigarette at any time in the next year?
and (3) If one of your best friends were to offer you a cigarette,
would you smoke it? Response options are: (1) Definitely yes; (2)
Probably yes; (3) Probably not; and (4) Definitely not. A respondent
who selects a response of 1, 2, or 3 to any of these items is
classified as susceptible.
    (Comment) One commenter sought clarification regarding which health
warnings will be used (on the study stimuli) alongside the claims and
how FDA intends to address the balance between MRTP claims and
warnings.
    (Response) Study stimuli-images of tobacco product packages and
ads-will display the warning labels currently mandated for each product
category. The warnings will be rotated (between participants) so that
all mandated warnings are used. Because the current studies are not
intended to examine the relationship between warnings and claims
(including potential interactions between the two), warning label
assignment will not be an experimental factor in the study design.
Instead, the warnings will be rotated throughout all conditions to
control for any differences between them (alone or in combination with
a particular claim).
    FDA estimates the burden of this collection of information as
follows:

                                                     Table 1--Estimated Annual Reporting Burden \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Number of
                   Activity                       Number of     responses per   Total annual          Average burden per response           Total hours
                                                 respondents     respondent       responses
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adult Screener...............................          24,000               1          24,000  0.03 (2 minutes).........................             720
Study 1 (Adults).............................           1,800               1           1,800  0.333 (20 minutes).......................             599
Study 2 (Adults).............................             600               1             600  0.333 (20 minutes).......................             200
                                              ------------------------------------------------                                           ---------------
    Total Adult Hours........................  ..............  ..............  ..............  .........................................           1,519
Youth Screener...............................           6,000               1           6,000  0.03 (2 minutes).........................             180
                                              ------------------------------------------------                                           ---------------
Study 3 (Youth)..............................             600               1             600  0.333 (20 minutes).......................             200
                                              ------------------------------------------------                                           ---------------

    Total Youth Hours........................  ..............  ..............  ..............  .........................................             380
                                              ------------------------------------------------                                           ---------------
        Total Hours..........................  ..............  ..............  ..............  .........................................           1,899
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of information.

    FDA's burden estimate is based on prior experience with research
that is similar to this proposed study. Approximately 30,000
respondents will complete a screener to determine eligibility for
participation in a study, estimated to take approximately 2 minutes
(0.03 hours), for a total of 900 hours for screening activities. Three
thousand respondents will complete a full study, estimated to last 20
minutes (0.333 hours), for a total of 999 hours for completion of both
adult studies and 1 youth study. The estimated total hour burden of the
collection of information is 1,899 hours.

References

    The following references are on display in the Division of Dockets
Management (see ADDRESSES) and are available for viewing by interested
persons between 9 a.m. and 4 p.m., Monday through Friday; they are also
available electronically at http://www.regulations.gov.

1. Keller, Kevin L. and Donald R. Lehman, ``Brands and Branding:
Research Findings and Future Priorities,'' Marketing Science, vol.
25, no. 6, pp. 740-759, 2006.
2. Eagly, Alice H. and Shelly Chaiken, ``Process Theories of
Attitude Formation and Change: Reception and Cognitive Responding,''
The Psychology of Attitudes, Chapter 6, Harcourt Brace Jovanovich
College Publishers, 1993.

    Dated: January 27, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016-01788 Filed 2-1-16; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register: November 10, 2008 (Volume 73, Number 218)]
[Rules and Regulations]
[Page 66512-66514]
[DOCID:fr10no08-5]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2008-1166; Directorate Identifier 2008-NM-179-AD;
Amendment 39-15728; AD 2008-23-07]
RIN 2120-AA64

Airworthiness Directives; Boeing Model 737 Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for all
Boeing Model 737 airplanes. This AD requires revising the airplane
flight manual to include a new flightcrew briefing that must be done
before the first flight of the day and following any change in
flightcrew members, and to advise the flightcrew of this additional
briefing. This AD results from continuing reports that flightcrews have
failed to recognize and react properly to the cabin altitude warning
horn. We are issuing this AD to prevent failure of the flightcrew to
recognize and react properly to a valid cabin altitude warning horn,
which could result in incapacitation of the flightcrew due to hypoxia
(lack of oxygen in body) and consequent loss of airplane control.

DATES: This AD is effective November 25, 2008.
    We must receive comments on this AD by January 9, 2009.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.

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 street address for

the Docket Office (telephone<PHONE_NUMBER>) is in the ADDRESSES section.
Comments will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Gregg Nesemeier, Aerospace Engineer,
Systems and Equipment Branch, ANM-130S, FAA, Seattle Aircraft
Certification Office, 1601 Lind Avenue, SW., Renton, Washington 98057-
3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    On June 15, 2006, we issued related AD 2006-13-13, amendment 39-
14666 (71 FR 35781, June 22, 2006). (A correction of that AD was
published in the Federal Register on July 3, 2006 (71 FR 37980).) That
AD applies to all Boeing Model 737 airplanes. That AD requires revising
the airplane flight manual (AFM) to advise the flightcrew of improved
procedures for pre-flight setup of the cabin pressurization system, as
well as improved procedures for interpreting and responding to the
cabin altitude/configuration warning horn. That AD resulted from
reports that airplanes had failed to pressurize, and that the
flightcrews failed to react properly to the cabin altitude warning
horn. The actions specified in that AD are intended to prevent failure
of the airplane to pressurize and subsequent failure of the flightcrew
to recognize and react to a valid cabin altitude warning horn, which
could result in incapacitation of the flightcrew due to hypoxia (lack
of oxygen in body) and consequent loss of airplane control.

Actions Since Related AD Was Issued

    Since we issued AD 2006-13-13, we have received continuing reports
of in-service events involving failure of the flightcrew to recognize
and react properly to valid cabin altitude warning horns. Therefore, we
have determined that a new flightcrew briefing before the first flight
of the day and following any change in flight crewmembers, in addition
to the existing AFM procedures, is necessary to mitigate the risk of
additional events.

FAA's Determination and Requirements of This AD

    We are issuing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of the(se) same type
design(s). This AD requires revising the AFM to include a new
flightcrew briefing that must be done before the first flight of the
day and following any change in flightcrew members, and to advise the
flightcrew of this additional briefing.

Interim Action

    We consider this AD interim action. The manufacturer has advised
that it currently is developing a design change in the cabin altitude
warning system that will address the unsafe condition identified by
this AD. Once this design change is developed, approved, and available,
we might consider additional rulemaking.

FAA's Justification and Determination of the Effective Date and
Compliance Time

    We are issuing this AD to prevent failure of the flightcrew to
recognize and react to a valid cabin altitude warning horn, which could
result in incapacitation of the flightcrew due to hypoxia (lack of
oxygen in body) and consequent loss of airplane control. This action
follows related rulemaking action we took in response to a report
resulting from the investigation by the Air Accident Investigation and
Aviation Safety Board of Greece into the August 14, 2005, Helios
Airways accident near Athens, Greece. This action affects the entire
fleet of Boeing Model 737 airplanes (nearly 5,000 airplanes worldwide);
these airplanes have a very high utilization rate. Because of our
requirement to promote safe flight of civil aircraft and thus the
critical need to assure that the flightcrew recognizes and reacts
properly to a valid cabin altitude warning horn and the compliance time
involved with this action, this AD must be issued immediately.
    We acknowledge that a compliance time of 120 days is unusually long
for an AFM-change/immediately adopted rule. However, in this case, we
have determined that it is necessary to provide sufficient time for
operators to adequately prepare to meet the requirements of the AD.
This preparation includes obtaining regulatory acceptance (from
principal operations inspectors) of the required flightcrew preflight
briefing aids, publication of flightcrew briefing aids in sufficient
quantities, and familiarization of flightcrews with the AD briefing
requirements. The time required to prepare to implement the AD
requirements is increased by the size of the affected fleet. We have
further determined that a 120-day compliance time will provide an
adequate level of safety. Therefore, a compliance time of 120 days has
been specified in order to provide operators with sufficient time to
accomplish the requirements of this AD.
    Because an unsafe condition exists that requires the immediate
adoption of this AD, we find that notice and opportunity for prior
public comment hereon are impracticable and that good cause exists for
making this amendment effective in less than 30 days.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not provide you with notice and an opportunity to
provide your comments before it becomes effective. However, we invite
you to send any written data, views, or arguments about this AD. Send
your comments to an address listed under the ADDRESSES section. Include
``Docket No. FAA-2008-1166; Directorate Identifier 2008-NM-179-AD'' at
the beginning of your comments. We specifically invite comments on the
overall regulatory, economic, environmental, and energy aspects of this
AD. We will consider all comments received by the closing date and may
amend this AD 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 we
receive about 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), and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    You can find our regulatory evaluation and the estimated costs of
compliance in the AD Docket.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Safety.

Adoption of the Amendment

0
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 39.13 by adding the following new AD:

2008-23-07 Boeing: Amendment 39-15728. Docket No. FAA-2008-1166;
Directorate Identifier 2008-NM-179-AD.

Effective Date

    (a) This airworthiness directive (AD) is effective November 25,
2008.

Affected ADs

    (b) This AD is related to AD 2006-13-13, amendment 39-14666;
paragraph (a) of AD 2003-03-15 R1, amendment 39-13366; and paragraph
(a) of AD 2003-14-08, amendment 39-13227. This AD does not supersede
the requirements of AD 2006-13-13, AD 2003-03-15 R1, or AD 2003-14-
08.

Applicability

    (c) This AD applies to all Boeing Model 737-100, -200, -200C, -
300, -400, -500, -600, -700, -700C, -800, -900, and -900ER series
airplanes, certificated in any category.

Unsafe Condition

    (d) This AD results from continuing reports that flightcrews
have failed to recognize and react properly to the cabin altitude
warning horn. We are issuing this AD to prevent failure of the
flightcrew to recognize and react to a valid cabin altitude warning
horn, which could result in incapacitation of the flightcrew due to
hypoxia (lack of oxygen in body) and consequent loss of airplane
control.

Compliance

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

Revising the Airplane Flight Manual (AFM)

    (f) Within 120 days after the effective date of this AD, revise
the Limitations Section of the applicable Boeing 737 AFM to include
the following statement. This may be done by inserting a copy of
this AD into the applicable AFM.

``CABIN ALTITUDE WARNING TAKEOFF BRIEFING (required by AD 2008-23-
07)

    With the CABIN ALTITUDE and TAKEOFF CONFIG lights not installed,
or installed but not activated:
    As part of the Takeoff Briefing before engine start for the
first flight of the day or following any change of either flightcrew
member, the pilot-in-command will ensure the Cabin Altitude Warning
indications and procedures are briefed in accordance with the
procedures contained in the Normal Procedures section of this
manual.''

    (g) Within 120 days after the effective date of this AD, revise
the Normal Procedures Section of the applicable Boeing 737 AFM to
include the following statement. This may be done by inserting a
copy of this AD into the applicable AFM.

``CABIN ALTITUDE WARNING TAKEOFF BRIEFING (required by AD 2008-23-
07)

    The following briefing is important to further reduce the risk
of flightcrew incapacitation due to hypoxia. Because of the dual
purpose of the intermittent cabin altitude/takeoff configuration
warning horn, this briefing serves to remind flightcrews that the
sounding of the cabin altitude warning horn in flight requires
immediate action, beginning with the immediate donning of oxygen
masks. Upon completion of the applicable WARNING HORN--CABIN
ALTITUDE OR CONFIGURATION non-normal checklist memory items, other
alerts and indications on the flight deck (e.g., air/ground sensing
system failures, equipment cooling OFF, etc.) may then be addressed.
    Memory item cabin altitude warning indications and procedures
must be briefed on airplanes in which the CABIN ALTITUDE and TAKEOFF
CONFIG lights are not installed, or are installed but not activated.
This will be included as an additional item on the Takeoff briefing
before engine start for the first flight of the day, or following
any change of either flightcrew member.
    The briefing must include the following items.

--Whenever the intermittent warning horn sounds in flight:
    1. Immediately, don oxygen masks and set regulators to 100%.
    2. Establish crew communications.
    3. Do the CABIN ALTITUDE WARNING OR RAPID DEPRESSURIZATION
checklist.
--Both pilots must verify on the overhead Cabin Altitude Panel that
the cabin altitude is stabilized at or below 10,000 feet before
removing oxygen masks.''

Special Flight Permit

    (h) Special flight permits are prohibited.

Alternative Methods of Compliance (AMOCs)

    (i)(1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, ATTN: Gregg Nesemeier, Aerospace Engineer, Systems and
Equipment Branch, ANM-130S, FAA, Seattle Aircraft Certification
Office, 1601 Lind Avenue, SW., Renton, Washington 98055-4056;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19.
    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your appropriate principal inspector (PI) in the FAA
Flight Standards District Office (FSDO), or lacking a PI, your local
FSDO.

Material Incorporated by Reference

    (j) None.

    Issued in Renton, Washington, on October 24, 2008.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E8-26373 Filed 11-7-08; 8:45 am]

BILLING CODE 4910-13-P