[Federal Register Volume 85, Number 139 (Monday, July 20, 2020)]
[Proposed Rules]
[Pages 43752-43754]
[FR Doc No: 2020-15381]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0653; Project Identifier AD-2020-00631-E]
RIN 2120-AA64

Airworthiness Directives; General Electric Company Turbofan
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for all General Electric Company (GE) GEnx-1B64, -1B64/P1, -1B64/P2, -
1B67, -1B67/P1, -1B67/P2, -1B70, -1B70/75/P1, -1B70/75/P2, -1B70/P1, -
1B70/P2, -1B70C/P1, -1B70C/P2, -1B74/75/P1, -1B74/75/P2, -1B76/P2, and
-1B76A/P2 model turbofan engines. This proposed AD was prompted by a
report of a crack in the outer fuel manifold causing fuel leakage. This
proposed AD would require initial and repetitive visual inspections of
the cushioned loop clamp (``p-clamp'') and, depending on the results of
the inspection, a spot fluorescent penetrant inspection (FPI) of the
outer fuel manifold. Depending on the results of the FPI, this proposed
AD would require replacement of the outer fuel manifold. This proposed
AD would also require initial and repetitive replacements of the p-
clamp. The FAA is proposing this AD to address the unsafe condition on
these products.

DATES: The FAA must receive comments on this proposed AD by September
3, 2020.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact General
Electric Company, 1 Neumann Way, Cincinnati, OH 45215, United States;
phone:<PHONE_NUMBER>; email<EMAIL_ADDRESS>website:
www.ge.com. You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 1200
District Avenue, Burlington, MA 01803. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0653; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, any comments received, and other information. The street
address for Docket Operations is listed above. Comments will be
available in the AD docket shortly after receipt.

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

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2020-0653;
Project Identifier AD-2020-00631-E'' at the beginning of your comments.
The FAA specifically invites comments on the overall regulatory,
economic, environmental, and energy aspects of this NPRM. The FAA will
consider all comments received by the closing date and may amend this
NPRM because of those comments.
    Except for Confidential Business Information as described in the
following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The FAA will also post a report summarizing each substantive
verbal contact received about this NPRM.

Confidential Business Information

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

Discussion

    The FAA received a report that an aircraft with GE GEnx-1B model
engines installed experienced a fuel imbalance in July 2018. Upon
landing, the operator identified a crack in the outer fuel manifold
during a fuel system inspection. The root cause of this cracking has
been identified as a failure of a p-clamp that provides bracket support
to the outer fuel manifold. Failure of the p-clamp increased high-cycle
fatigue stresses at a welded joint of the outer fuel manifold resulting
in the crack. This condition, if not addressed, could result in engine
fire and damage to the airplane.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed GE GEnx-1B Service Bulletin (SB) 73-0080 R01,
dated August 29, 2019. The SB describes procedures for replacing the p-
clamp located at the signal fuel tube hose, significant item number
34200, and instructions for removing the signal fuel tube hose when a
p-clamp is found damaged or missing. 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

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

Proposed AD Requirements

    This proposed AD would require initial and repetitive visual
inspections of the p-clamp and, depending on the results of the
inspection, a FPI of the outer fuel manifold. Depending on the results
of the FPI, this proposed AD would require replacement of the outer
fuel manifold. This proposed AD would also require initial and
repetitive replacements of the p-clamp.

Interim Action

    The FAA considers this proposed AD interim action. The manufacturer
is still reviewing this unsafe condition and may develop a terminating
action.

Costs of Compliance

    The FAA estimates that this proposed AD affects 190 engines
installed on airplanes of U.S. registry.
    The FAA estimates the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Visually inspect the p-clamp..........  0.25 work-hours x $85                 $0          $21.25       $4,037.50
                                         per hour = $21.25.
Replace the p-clamp...................  0.25 work-hours x $85 =              102          123.25       23,417.50
                                         $21.25.
----------------------------------------------------------------------------------------------------------------

    The FAA estimates the following costs to do any necessary FPIs and
replacements that would be required based on the results of the
proposed visual inspection. The FAA has no way of determining the
number of aircraft that might need this FPI or replacement:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
FPI the outer fuel manifold...................  2.5 work-hours x $85 per hour =               $0         $212.50
                                                 $212.50.
Replace the outer fuel manifold...............  250 work-hours x $85 per hour =           18,400          39,650
                                                 $21,250.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

General Electric Company: Docket No. FAA-2020-0653; Project
Identifier AD-2020-00631-E.

(a) Comments Due Date

    The FAA must receive comments by September 3, 2020.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all General Electric Company (GE) GEnx-1B64,
-1B64/P1, -1B64/P2, -1B67, -1B67/P1, -1B67/P2, -1B70, -1B70/75/P1, -
1B70/75/P2, -1B70/P1, -1B70/P2, -1B70C/P1, -1B70C/P2, -1B74/75/P1, -
1B74/75/P2, -1B76/P2, and -1B76A/P2 model turbofan engines.

(d) Subject

    Joint Aircraft System Component (JASC) Code 7310, Engine Fuel
Distribution.

(e) Unsafe Condition

    This AD was prompted by a report of a crack in the outer fuel
manifold causing fuel leakage. The FAA is issuing this AD to prevent
failure of the outer fuel manifold. The unsafe condition, if not
addressed, could result in engine fire and damage to the airplane.

(f) Compliance

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

(g) Required Actions

    (1) Within 500 flight cycles (FCs) after the effective date of
this AD, perform a visual inspection of the cushioned loop clamp
(``p-clamp'') to verify the p-clamp is undamaged and installed.
    (i) Thereafter, perform the visual inspection required by (g)(1)
of this AD at intervals not to exceed 500 FCs since the last
inspection.
    (ii) [Reserved]
    (2) If, during any visual inspection required by paragraphs
(g)(1) or (g)(1)(i) of this AD, the p-clamp is outside of the limits
in paragraph 3.B.(4) of GE GEnx-1B Service Bulletin (SB) 73-0080
R01, dated August 29, 2019, or if the p-clamp is missing, perform a
spot fluorescent penetrant inspection of the outer fuel manifold,
part number (P/N) 2403M46G01 significant item number (SIN) 34302,
using Accomplishment Instructions, paragraph 3.B.(4)(b), of GE GEnx-
1B SB 73-0080 R01, dated August 29, 2019.
    (i) If a crack or a sign of fuel leakage is found, before
further flight, remove the outer fuel manifold, P/N 2403M46G01 SIN
34302, from service and replace with a part eligible for
installation.
    (ii) [Reserved]
    (3) Within 500 FCs after the effective date of this AD, and
thereafter at intervals not to exceed 500 FCs from the last p-clamp
replacement, replace the p-clamp with a new p-clamp. Complete this
required action after performing the visual inspections required by
paragraphs (g)(1) and (g)(1)(i) of this AD.

(h) Definition

    For the purpose of this AD, a p-clamp is a clamp, P/N J1432P12
with SIN 34282, located at the signal fuel tube hose, SIN 34200, as
shown in Accomplishment Instructions, paragraph 3, Figure 1, ``Outer
Fuel Manifold and Clamp Location,'' of GE GEnx-1B SB 73-0080 R01,
dated August 29, 2019.

(i) Alternative Methods of Compliance (AMOCs)

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

(j) Related Information

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

    Issued on July 13, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-15381 Filed 7-17-20; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 238 (Thursday, December 11, 2014)]
[Notices]
[Pages 73670-73672]
[FR Doc No: 2014-29013]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73762; File No. SR-FINRA-2014-050]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend
TRACE Rules To Require Members To Identify Transactions With Non-Member
Affiliates and To Change How FINRA Disseminates a Subset of Such
Transactions

December 5, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 21, 2014, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by FINRA. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to amend the FINRA Rule 6700 Series (Trade
Reporting and Compliance Engine (TRACE)) to require members to identify
transactions with non-member affiliates, and to change how FINRA
disseminates a specific subset of these transactions.
    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    FINRA is amending the TRACE rules: (1) To add a new contra-party
type to be used in TRACE reports to identify transactions with non-
member affiliates, and (2) to require firms to identify when
transactions with non-member affiliates meet specified conditions, so
that FINRA can suppress dissemination of those trades.
    FINRA Rule 6730 (Transaction Reporting) sets forth the requirements
applicable to members for reporting transactions in TRACE-Eligible
Securities.\3\ Rule 6730(c) (Transaction Information To Be Reported)
describes the items of information that must be included in a TRACE
trade report. Among other things, members must identify the other side
(i.e., contra-party or counterparty) for each transaction.\4\ Where the
contra-party is a FINRA member, the reporting member must provide the
contra-party's designated Market Participant ID (``MPID'') in the trade
report. All other contra-parties (including non-member affiliates) can
only be identified as a ``customer'' when reporting the transaction to
TRACE.
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    \3\ Rule 6710 generally defines a ``TRACE-Eligible Security''
as: (1) A debt security that is U.S. dollar-denominated and issued
by a U.S. or foreign private issuer (and, if a ``restricted
security'' as defined in Securities Act Rule 144(a)(3), sold
pursuant to Securities Act Rule 144A); or (2) a debt security that
is U.S. dollar-denominated and issued or guaranteed by an ``Agency''
as defined in Rule 6710(k) or a ``Government-Sponsored Enterprise''
as defined in Rule 6710(n).
    \4\ FINRA Rule 6730(c)(6) provides that each TRACE trade report
shall contain the contra-party's identifier.
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    FINRA is proposing to amend Rule 6730 to introduce a new contra-
party type to identify non-member affiliates of the member reporting
the trade, and to disseminate publicly this contra-party identifier.\5\
Currently, as noted above, when a member engages in a transaction with
a non-member affiliate, that transaction is reported by the member as a
trade with a customer. Thus, the proposal would provide FINRA and
market participants with additional identifying information regarding
the

contra-party in the case of member trades with non-member-
affiliates.\6\
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    \5\ The proposed rule change would add a new definition to Rule
6710 to define ``non-member affiliate'' as a non-member entity that
controls, is controlled by or is under common control with a member.
For the purposes of this definition, ``control,'' along with any
derivative thereof, means legal, beneficial, or equitable ownership,
directly or indirectly, of 25 percent or more of the capital stock
(or other ownership interest, if not a corporation) of any entity
ordinarily having voting rights. The term ``common control'' means
the same natural person or entity controls two or more entities.
    \6\ The proposal would not change the way that FINRA members
report trades with affiliates that also are FINRA members; the
reporting member would continue to identify the contra-party by
MPID. FINRA believes that trades between members generally are arms-
length, even if the member firms are affiliated. Furthermore, it is
important for audit trail and surveillance purposes to obtain the
MPID of all member contra-parties in submitted trade reports.
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    FINRA also proposes to require members to identify a narrow subset
of transactions with non-member affiliates. Specifically, a member
would need to flag transactions between itself and a non-member
affiliate: (1) Where both parties are trading for their own account,
and (2) where the transaction with the non-member affiliate occurs
within the same day, at the same price and in the same security as a
transaction engaged in by the member with a different counterparty.
Identification of these transactions by members would enable FINRA to
suppress the transactions from dissemination on the tape, which is
desirable because they are not economically distinct transactions and
provide the same pricing information as the disseminated transaction
between the member and the other contra-party to the trade.
    The undesirability of disseminating these trades is illustrated by
the following example. Firm A, a FINRA member, acquires a position in a
TRACE-Eligible Security from another dealer, which Firm A reports for
dissemination by TRACE. Firm A may choose to hold this security at a
non-member affiliate, which it accomplishes by a back-to-back trade to
the affiliate on the same terms as it acquired the security. Currently,
this back-to-back trade with the affiliate would also be reported by
the member for dissemination by TRACE. FINRA believes that only one of
the trade reports related to this overall transaction should be
disseminated--specifically, the transaction between the member and the
other dealer, but not the trade between the member and its non-member
affiliate. Dissemination of the transaction between the member and its
non-member affiliate does not provide users of the disseminated data
with useful information for pricing, valuation or risk evaluation
purposes.
    FINRA would only suppress dissemination where a member purchases or
sells a security and then, within the same trading day, engages in a
back-to-back trade with its non-member affiliate in the same security
at the same price. Because the trade of the security between the member
and its non-member affiliate represents a change in beneficial
ownership between different legal entities, it is a reportable
transaction and is publicly disseminated under the current rule.
However, the fact that the trade occurs with a non-member affiliated
entity, during the same day and at the same price (no commission or
mark-up was assessed) is indicia that the transaction is not an arms-
length trade and, therefore, does not constitute the type of
transaction that adds value to the tape.
    FINRA believes the proposal will improve the information currently
received for regulatory purposes by providing additional information on
the relationship between parties to a trade. For example, knowledge of
a contra-party's status as a non-member affiliate of the reporting
member would be useful in FINRA's regulatory program, which is reliant
upon the completeness and accuracy of the information members report to
TRACE. For example, the proposed rule change would support the
operation of the patterns that surveil for pre-arranged trading, best
execution, parking and fair pricing. Thus, FINRA expects that the
addition of the non-member affiliate contra-party identifier will
facilitate a more effective program and reduce the number of false-
positive alerts from surveillance patterns and regulatory inquiries
from FINRA to member firms. FINRA also believes the rule change will
improve the quality of the information disseminated for transparency
purposes by suppressing transaction reports that are not economically
distinct from a separately reported (and disseminated) leg, and by
disseminating a new contra-party identifier in all cases when a trade
is with a non-member affiliate.
    FINRA staff discussed the proposal with advisory committees in
developing its approach. These parties were supportive of the proposal,
believing that it would improve the value of the information submitted
to the tape by reducing the instances in which duplicative trade
information is disseminated publicly. Members of the committees also
did not express any particular concerns with respect to the operational
impacts or costs of the proposal. Further discussions with firms that
would be directly impacted by the proposal also indicated that the
proposal to suppress dissemination of these trades would be beneficial
to market participants, and that the necessary technological changes
would not be unduly burdensome given an adequate implementation
timeframe.
    FINRA will announce the implementation date of the proposed rule
change in a Regulatory Notice to be published no later than 60 days
following Commission approval. The implementation date will be no later
than 90 days following publication of the Regulatory Notice announcing
Commission approval.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\7\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    As discussed above, FINRA believes the proposal would result in
improved disseminated transaction information for TRACE-Eligible
Securities by reducing the instances in which trade information for
duplicative, non-economic trades is disseminated publicly. Under the
proposal, TRACE reports also would include more specific contra-party
information by adding an additional contra-party type to identify non-
member affiliates that would be used by FINRA for regulatory purposes
and disseminated to investors and market participants. Thus, FINRA
believes that the proposed rule change would enhance transparency by
suppressing trade reports on transactions that are not economically
distinct from a separately reported (and disseminated) leg, and the
regulatory audit trail by providing additional granularity regarding
the reporting firm's relationship with its contra-party.

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

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. While the proposal would
require firms to implement changes to identify covered transactions
with a non-member affiliate, FINRA does not believe these changes would
impose differential costs on similarly situated firms. Discussions with
members indicate that, so long as sufficient implementation time is
provided to make the necessary technological changes, the proposed rule
change would not be unduly burdensome, given its benefits to
transparency. In addition to the benefits to public transparency, the
non-member affiliate contra-party identifier will facilitate a more
effective regulatory program by allowing FINRA further insight into
whether a member's

transaction is arms-length. In addition, FINRA anticipates the proposal
would result in a reduction in the number of false-positive alerts from
surveillance patterns and fewer regulatory inquiries from FINRA to
member firms.

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

    FINRA has not solicited, and does not intend to solicit, comments
on this proposed rule change. FINRA has not received any written
comments from members or other interested parties.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2014-050 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549.

All submissions should refer to File Number SR-FINRA-2014-050. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of FINRA. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2014-050 and should be
submitted on or before January 2, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2014-29013 Filed 12-10-14; 8:45 am]
BILLING CODE 8011-01-P


( i) 4.0 percent leaking coke oven doors for each 106 tall by product coke oven battery and for each by product coke oven battery owned or operated by a foundry coke producer, as determined by the procedures in § 63.309( d)( 1);

( ii) 3.3 percent leaking coke oven doors for each by product coke oven battery not subject to the emission limitation in paragraph ( a)( 3)( i) of this section, as determined by the procedures in § 63.309( d)( 1);

( iii) 0.4 percent leaking topside port lids, as determined by the procedures in § 63.309( d)( 1);

( iv) 2.5 percent leaking offtake system( s), as determined by the procedures in § 63.309( d)( 1); and ( v) 12 seconds of visible emissions per charge, as determined by the procedures in § 63.309( d)( 2).

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5. Section 63.303 is amended by:

a. Redesignating paragraphs ( b)( 3) and ( b)( 4) as ( b)( 4) and ( b)( 5) and adding new paragraph ( b)( 3); and b. Adding new paragraphs ( c) and ( d).

The additions read as follows:

§ 63.303 Standards for non recovery coke oven batteries.

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( b) * * *

( 3) For charging operations, the owner or operator 107 shall implement, for each day of operation, the work practices specified in § 63.306( b)( 6) and record the performance of the work practices as required in § 63.306( b)( 7).

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( c) Except as provided in § 63.304, the owner or operator of any non recovery coke oven battery shall meet the work practice standards in paragraphs ( c)( 1) and ( 2)

of this section.

( 1) The owner or operator shall observe each coke oven door after charging and record the oven number of any door from which visible emissions occur. Emissions from coal spilled during charging or from material trapped within the seal area of the door are not considered to be a door leak if the owner or operator demonstrates that the oven is under negative pressure,

and that no emissions are visible from the top of the door or from dampers on the door.

( 2) Except as provided in paragraphs ( c)( 2)( i) and ( ii) of this section, if a coke oven door leak is observed at any time during the coking cycle, the owner or operator shall take corrective action and stop the leak within 15 minutes from the time the leak is first observed. No additional leaks are allowed from doors on 108 that oven for the remainder of that oven's coking cycle.

( i) For no more than two times per battery in any semiannual reporting period, the owner or operator may take corrective action and stop the leak within 45 minutes ( instead of 15 minutes) from the time the leak is first observed.

( ii) The limit of two occurrences per battery specified in paragraph ( c)( 2)( i) of this section does not apply if a worker must enter a cokeside shed to stop a leaking door under the cokeside shed. The owner or operator shall take corrective action and stop the door leak within 45 minutes ( instead of 15 minutes) from the time the leak is first observed. The evacuation system and control device for the cokeside shed must be operated at all times there is a leaking door under the cokeside shed.

( d) The owner or operator of a new non recovery coke oven battery shall meet the emission limitations and work practice standards in paragraphs ( d)( 1) through ( 4)

of this section.

( 1) The owner or operator shall not discharge or cause to be discharged to the atmosphere from charging operations any fugitive emissions that exhibit an opacity greater than 20 percent, as determined by the procedures 109 in § 63.309( j).

( 2) The owner or operator shall not discharge or cause to be discharged to the atmosphere any emissions of particulate matter ( PM) from a charging emissions control device that exceed 0.0081 pounds per ton ( lbs/ ton) of dry coal charged, as determined by the procedures in § 63.309( k).

( 3) The owner or operator shall observe the exhaust stack of each charging emissions control device at least once during each day of operation to determine if visible emissions are present and shall record the results of each daily observation or the reason why conditions did not permit a daily observation. If any visible emissions are observed, the owner or operator must:

( i) Take corrective action to eliminate the presence of visible emissions;

( ii) Record the cause of the problem creating the visible emissions and the corrective action taken;

( iii) Conduct visible emission observations according to the procedures in § 63.309( m) within 24 hours after detecting the visible emissions; and ( iv) Report any 6 minute average, as determined according to the procedures in § 63.309( m), that exceeds 10 percent opacity as a deviation in the semiannual 110 compliance report required by § 63.311( d).

( 4) The owner or operator shall develop and implement written procedures for adjusting the oven uptake damper to maximize oven draft during charging and for monitoring the oven damper setting during each charge to ensure that the damper is fully open.

6. Section 63.309 is amended by adding new paragraphs ( j) through ( m) to read as follows:

§ 63.309 Performance tests and procedures.

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( j) The owner or operator of a new non recovery coke oven battery shall conduct a performance test once each week to demonstrate compliance with the opacity limit in § 63.303( d)( 1). The owner or operator shall conduct each performance test according to the procedures and requirements in paragraphs ( j)( 1) through ( 3) of this section.

( 1) Using a certified observer, determine the average opacity of five consecutive charges per week for each charging emissions capture system if charges can be observed according to the requirements of Method 9 ( 40 CFR part 60, appendix A), except as specified in paragraphs ( j)( 1)( i) and ( ii) of this section.

( i) Instead of the procedures in section 2.4 of 111 Method 9 ( 40 CFR part 60, appendix A), record observations to the nearest 5 percent at 15 second intervals for at least five consecutive charges.

( ii) Instead of the procedures in section 2.5 of Method 9 ( 40 CFR part 60, appendix A), determine and record the highest 3 minute block average opacity for each charge from the consecutive observations recorded at 15 second intervals.

( 2) Opacity observations are to start when the door is removed for charging and end when the door is replaced.

( 3) Using the observations recorded from each performance test, the certified observer shall compute and record the average of the five 3 minute block averages.

( k) The owner or operator of a new non recovery coke oven battery shall conduct a performance test to demonstrate initial compliance with the emission limitations for a charging emissions control device in § 63.303( d)( 2) within 180 days of the compliance date that is specified for the affected source in § 63.300( a)( 4) and report the results in the notification of compliance status. The owner or operator shall prepare a sitespecific test plan according to the requirements in 112 § 63.7( c) and shall conduct each performance test according to the requirements in § 63.7( e)( 1) and paragraphs ( k)( 1) through ( 4) of this section.

( 1) Determine the concentration of PM according to the following test methods in appendix A to 40 CFR part 60.

( i) Method 1 to select sampling port locations and the number of traverse points. Sampling sites must be located at the outlet of the control device and prior to any releases to the atmosphere.

( ii) Method 2, 2F, or 2G to determine the volumetric flow rate of the stack gas.

( iii) Method 3, 3A, or 3B to determine the dry molecular weight of the stack gas. You may also use as an alternative to Method 3B, the manual method for measuring the oxygen, carbon dioxide, and carbon monoxide content of exhaust gas, ANSI/ ASME PTC 19.10 1981, " Flue and Exhaust Gas Analyses" ( incorporated by reference, see § 63.14).

( iv) Method 4 to determine the moisture content of the stack gas.

( v) Method 5 or 5D, as applicable, to determine the concentration of front half PM in the stack gas.

( 2) During each PM test run, sample only during 113 periods of actual charging when the capture system fan and control device are engaged. Collect a minimum sample volume of 30 dry standard cubic feet ( dscf) during each test run. Three valid test runs are needed to comprise a performance test. Each run must start at the beginning of a charge and finish at the end of a charge ( i. e.,

sample for an integral number of charges).

( 3) Determine and record the total combined weight of tons of dry coal charged during the duration of each test run.

( 4) Compute the process weighted mass emissions ( Ep)

for each test run using Equation 1 of this section as follows:

Where:

E p = Process weighted mass emissions of PM, lb/ ton; C = Concentration of PM, grains per dry standard cubic foot ( gr/ dscf); Q = Volumetric flow rate of stack gas, dscf/ hr; T = Total time during a run that a sample is withdrawn from the stack during charging, hr; P = Total amount of dry coal charged during the test run, tons; and K = Conversion factor, 7,000 grains per pound ( gr/ lb).

( l) The owner or operator of a new non recovery coke oven battery shall conduct subsequent performance E C Q T P K p = ´ ´ ´ ( Eq. 1) 114 tests for each charging emissions control device subject to the PM emissions limit in § 63.303( d)( 2) at least once during each term of their title V operating permit.

( m) Visible emission observations of a charging emissions control device required by § 63.303( d)( 3)( iii)

must be performed by a certified observer according to Method 9 ( 40 CFR part 60, appendix A) for one 6 minute period.

7. Section 63.310 is amended by adding new paragraph ( j) to read as follows:

§ 63.310 Requirements for startups, shutdowns, and malfunctions.

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( j) The owner or operator of a non recovery coke oven battery subject to the work practice standards for door leaks in § 63.303( c) shall include the information specified in paragraphs ( j)( 1) and ( 2) of this section in the startup, shutdown, and malfunction plan.

( 1) Identification of potential malfunctions that will cause a door to leak, preventative maintenance procedures to minimize their occurrence, and corrective action procedures to stop the door leak.

( 2) Identification of potential malfunctions that affect charging emissions, preventative maintenance 115 procedures to minimize their occurrence, and corrective action procedures.

8. Section 63.311 is amended by:

a. Revising paragraph ( b)( 1) and adding new paragraphs ( b)( 3) through ( 7);

b. Revising paragraph ( c)( 1) and adding new paragraph ( c)( 3);

c. Revising paragraphs ( d)( 1) through ( 3) and adding new paragraphs ( d)( 4) through ( 9); and d. Revising paragraphs ( f)( 1)( i) and ( ii) and adding new paragraphs ( f)( 1)( iv) through ( ix).

The revisions and additions read as follows:

§ 63.311 Reporting and recordkeeping requirements.

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( b) Initial compliance certification. * * *

( 1) Statement signed by the owner or operator,

certifying that a bypass/ bleeder stack flare system or an approved alternative control device or system has been installed as required in § 63.307.

( 2) * * *

( 3) Statement, signed by the owner or operator,

certifying that all work practice standards for charging operations have been met as required in § 63.303( b)( 3).

( 4) Statement, signed by the owner or operator, 116 certifying that all work practice standards for door leaks have been met as required in § 63.303( c).

( 5) Statement, signed by the owner or operator,

certifying that the information on potential malfunctions has been added to the startup, shutdown and malfunction plan as required in § 63.310( j).

( 6) Statement, signed by the owner or operator,

that all applicable emission limitations in § 63.303( d)( 1)

and ( 2) for a new non recovery coke oven battery have been met. The owner or operator shall also include the results of the PM performance test required in § 63.309( k).

( 7) Statement, signed by the owner or operator,

certifying that all work practice standards in § 63.303( d)( 3) and ( 4) for a new non recovery coke oven battery have been met.

( c) Notifications. * * *

( 1) Intention to construct a new coke oven battery ( including reconstruction of an existing coke oven battery and construction of a greenfield coke oven battery), a brownfield coke oven battery, or a padup rebuild coke oven battery, including the anticipated date of startup.

( 2) * * * 117 ( 3) Intention to conduct a PM performance test for a new non recovery coke oven battery subject to the requirements in § 63.303( d)( 2). The owner or operator shall provide written notification according to the requirements in § 63.7( b).

( d) Semiannual compliance report. * * *

( 1) Certification, signed by the owner or operator,

that no coke oven gas was vented, except through the bypass/ bleeder stack flare system of a by product coke oven battery during the reporting period or that a venting report has been submitted according to the requirements in paragraph ( e) of this section.

( 2) Certification, signed by the owner or operator,

that a startup, shutdown, or malfunction event did not occur for a coke oven battery during the reporting period or that a startup, shutdown, and malfunction event did occur and a report was submitted according to the requirements in § 63.310( e).

( 3) Certification, signed by the owner or operator,

that work practices were implemented if applicable under § 63.306.

( 4) Certification, signed by the owner or operator,

that all work practices for non recovery coke oven batteries were implemented as required in § 63.303( b)( 3). 118 ( 5) Certification, signed by the owner or operator,

that all coke oven door leaks on a non recovery battery were stopped according to the requirements in § 63.303( c)( 2) and ( 3). If a coke oven door leak was not stopped according to the requirements in § 63.303( c)( 2)

and ( 3), or if the door leak occurred again during the coking cycle, the owner or operator must report the information in paragraphs ( d)( 5)( i) through ( iii) of this section.

( i) The oven number of each coke oven door for which a leak was not stopped according to the requirements in § 63.303( c)( 2) and ( 3) or for a door leak that occurred again during the coking cycle.

( ii) The total duration of the leak from the time the leak was first observed.

( iii) The cause of the leak ( including unknown cause, if applicable) and the corrective action taken to stop the leak.

( 6) Certification, signed by the owner or operator,

that the opacity of emissions from charging operations for a new non recovery coke oven battery did not exceed 20 percent. If the opacity limit in § 63.303( d)( 1) was exceeded, the owner or operator must report the number,

duration, and cause of the deviation ( including unknown 119 cause, if applicable), and the corrective action taken.

( 7) Results of any PM performance test for a charging emissions control device for a new non recovery coke oven battery conducted during the reporting period as required in § 63.309( l).

( 8) Certification, signed by the owner or operator,

that all work practices for a charging emissions control device for a new non recovery coke oven battery were implemented as required in § 63.303( d)( 3). If a Method 9 visible emissions observation exceeds 10 percent, the owner or operator must report the duration and cause of the deviation ( including unknown cause, if applicable),

and the corrective action taken.

( 9) Certification, signed by the owner or operator,

that all work practices for oven dampers on a new nonrecovery coke oven battery were implemented as required in § 63.303( d)( 4).

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( f) Recordkeeping. * * *

( 1) * * *

( i) Records of daily pressure monitoring, if applicable according to § 63.303( a)( 1)( ii) or § 63.303( b)( 1)( ii).

( ii) Records demonstrating the performance of work 120 practice requirements according to § 63.306( b)( 7). This requirement applies to non recovery coke oven batteries subject to the work practice requirements in § 63.303( a)( 2) or § 63.303( b)( 3).

( iii) * * *

( iv) Records to demonstrate compliance with the work practice requirement for door leaks in § 63.303( c).

These records must include the oven number of each leaking door, total duration of the leak from the time the leak was first observed, the cause of the leak ( including unknown cause, if applicable), the corrective action taken, and the amount of time taken to stop the leak from the time the leak was first observed.

( v) Records to demonstrate compliance with the work practice requirements for oven uptake damper monitoring and adjustments in § 63.303( c)( 1)( iv).

( vi) Records of weekly performance tests to demonstrate compliance with the opacity limit for charging operations in § 63.303( d)( 1). These records must include calculations of the highest 3 minute averages for each charge, the average opacity of five charges, and, if applicable, records demonstrating why five consecutive charges were not observed ( e. g., the battery was charged only at night). 121 ( vii) Records of all PM performance tests for a charging emissions control device to demonstrate compliance with the limit in § 63.303( d)( 2).

( viii) Records of all daily visible emission observations for a charging emission control device to demonstrate compliance with the requirements limit in § 63.303( d)( 3).

( ix) Records to demonstrate compliance with the work practice requirements for oven uptake damper monitoring and adjustments in § 63.303( d)( 4).

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