[Federal Register: June 23, 2010 (Volume 75, Number 120)]
[Notices]
[Page 35862-35864]
[DOCID:fr23jn10-138]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62293; File No. SR-NYSEAmex-2010-50]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Amex
Equities Rule 123C(9)(a)(1) To Extend the Operation of a Pilot
Operating Pursuant to the Rule Until December 1, 2010

June 15, 2010.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on June 7, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 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

    The Exchange proposes to amend NYSE Amex Equities Rule
123C(9)(a)(1) to extend the operation of a pilot operating pursuant to
the Rule until December 1, 2010. The text of the proposed rule change
is available at the Exchange, the Commission's Public Reference Room,
and http://www.nyse.com.

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

    In its filing with the Commission, the self-regulatory organization
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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    NYSE Amex proposes to amend NYSE Amex Equities Rule 123C(9)(a)(1)
to extend the operation of a pilot that allows the Exchange to
temporarily suspend certain rule requirements at the close when extreme
order imbalances may cause significant dislocation to the closing price
(``Extreme Order Imbalances Pilot'' or ``Pilot'') \4\ until December 1,
2010.\5\
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    \4\ See Securities Exchange Act Release No. 59755 (April 13,
2009) 74 FR 18009 (April 20, 2009) (SR-NYSEALTR-2009-15); see also
Securities and Exchange Act [sic] Release No. 61265 (December 31,
2009), 75 FR 1094 (January 8, 2010) (SR-NYSEAmex-2009-96) (extending
the operation of the pilot from December 31, 2009 to March 1, 2010).
    \5\ The Exchange notes that parallel changes are proposed to be
made to the rules of New York Stock Exchange LLC. See SR-NYSE-2010-
42.
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Background
    Pursuant to NYSE Amex Equities Rule 123C(9)(a)(1), the Exchange may
suspend NYSE Amex Equities Rule 52 (Hours of Operation) to resolve an
extreme order imbalance that may result in a price dislocation at the
close as a result of an order entered into Exchange systems, or
represented to a DMM orally at or near the close. The provisions of
NYSE Amex Equities Rule 123C(9)(a)(1) operate as the Extreme Order
Imbalance Pilot.\6\
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    \6\ The Exchange notes that a version of the instant filing
requesting an extension of the Pilot was formally filed with the
Commission on May 27, 2010. The Pilot was scheduled to expire on
June 1, 2010. On June 7, 2010, SEC systems generated a rejection
notice to the Exchange related to the extension request submitted on
May 27, 2010, due to technical deficiencies in that filing. The
instant version corrects those technical deficiencies and seeks
continue the operation of the Pilot until December 1, 2010. The
Exchange did not invoke the provisions of the Pilot between June 1,
2010 and June 7, 2010.
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    As a condition of the approval to operate the Pilot, the Exchange
committed to provide the Commission with information regarding: (i) How
often a NYSE Amex Equities Rule 52 temporary suspension pursuant to the
Pilot was invoked during the six months following its approval; and
(ii) the Exchange's determination as to how to proceed with technical
modifications to reconfigure Exchange systems to accept orders
electronically after 4 p.m.
    During the operation of the Pilot, the Exchange believed that the
systems modifications to allow Exchange systems to accept orders
electronically after 4 p.m. would not be as onerous as previously
believed when the Pilot was initially commenced. The Exchange completed
the system modifications necessary to accept orders electronically
after 4 p.m. and began the process of testing the modifications. The
Exchange therefore filed to extend the Extreme Order Imbalance Pilot
until the earlier of SEC approval to make such Pilot permanent or June
1, 2010.\7\ At the time, the Exchange anticipated that its quality
assurance review process would be completed by June 1, 2010 and it
would be able to operate under the new system. The quality assurance
review determined that additional testing was required in order to
assure the optimal functioning of the system modifications. Given
unanticipated market wide initiatives that were (i.e., short sale and
stock-by-stock circuit breakers), which require systemic modifications
and a significant allocation of quality assurance resources, additional
testing is not feasible at this time.
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    \7\ See Securities Exchange Act Release No. 61611 (March 1,
2010), 75 FR 10530 (March 8, 2010) (SR-NYSEAmex-2010-15) (extending
the operation of the pilot from March 1, 2010 to June 1, 2010).
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Proposal To Extend the Operation of the Extreme Order Imbalance Pilot
    The Exchange established the Extreme Order Imbalance Pilot to
create a

mechanism for ensuring a fair and orderly close when interest is
received at or near the close that could negatively affect the closing
transaction. The Exchange believes that this tool has proved very
useful to resolve an extreme order imbalance that may result in a
closing price dislocation at the close as a result of an order entered
into Exchange systems, or represented to a DMM orally at or near the
close.
    NYSE Amex Equities Rule 123C(9) was intended to be and has been
invoked to attract offsetting interest in rare circumstances where
there exists an extreme imbalance at the close such that a DMM is
unable to close the security without significantly dislocating the
price. This is evidenced by the fact that during the course of the
Pilot to date, the Exchange invoked the provisions of NYSE Amex
Equities Rule 123C(9), including the provisions of the Extreme Order
Imbalance Pilot pursuant to NYSE Amex Equities Rule 123C(9)(a)(1), in
two securities on June 26, 2009, the date of the annual rebalancing of
Russell Indexes.
    Given the infrequency of these situations, the Exchange proposes to
extend the operation of the Pilot for a six month period to allow the
Exchange to complete systemic modifications required to implement the
short sale and stock-by-stock circuit breakers, as well as to upgrade
server capacity and an upcoming initiative to incorporate odd-lot
orders into the round lot market and decommission its Odd-lot System.
During the six month period, the Exchange will continue to monitor and
provide to the Commission information on how often it suspends NYSE
Amex Equities Rule 52 (Hours of Operation) to resolve an extreme order
imbalance that may result in a price dislocation at the close as a
result of an order entered into Exchange systems, or represented to a
DMM orally at or near the close. At the end of that period, the
Exchange will be in a better position to determine the efficacy of
providing any additional functionality under this Pilot rule. The
Exchange therefore requests an extension from the current expiration
date of June 1, 2010, until December 1, 2010.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \8\ that an Exchange have rules that
are designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system and, in general, to protect
investors and the public interest. The Exchange believes that the
instant filing is consistent with these principles. Specifically an
extension will allow the Exchange to determine the efficacy of
providing any additional functionality under this Pilot rule. The rule
operates to protect investors and the public interest by ensuring that
the closing price at the Exchange is not significantly dislocated from
the last sale price by virtue of an extreme order imbalance at or near
the close.
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    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Because the proposed rule change: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any significant burden on competition; and (iii) does not become
operative for 30 days after the date of the filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest, the proposed rule change has
become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and
Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19-4(f)(6)(iii)
under the Act, the Exchange is required to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay.
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiver of the operative delay is
consistent with the protection of investors and the public interest.
The pilot program was scheduled to expire on June 1, 2010. The
Commission notes that, although the exchange requested an extension
from June 1, 2010, because the filing was not properly made until June
7, 2010, the pilot consequently expired. However, the Commission finds
good cause to waive the operative delay because doing so will allow
immediate reinstatement of the pilot program as of June 7, 2010.\13\ In
addition, the Commission notes that the Exchange requested the
extension to allow the Exchange time to fully evaluate the Extreme
Order Imbalance Pilot. Therefore, the Commission designates the
proposed rule change operative upon filing.\14\
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    \13\ The Commission notes that the Exchange did not invoke the
provisions permitting supervision of NYSE Amex Equities Rule 52
between June 1 and June 7, 2010. See supra note 6.
    \14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered
    the proposed rule's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File No. SR-NYSEAmex-2010-50 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-NYSEAmex-2010-50. This file
number should be included on the

subject line if e-mail is used. To help the Commission process and
review your comments more efficiently, please use only one method. The
Commission will post all comments on the Commission's Internet Web site
(http://www.sec.gov/rules/sro.shtml). Copies of the submission,\15\ 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 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of NYSE Amex. 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 No. SR-NYSEAmex-2010-50 and should be submitted on or before July
14, 2010.
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    \15\ The text of the proposed rule change is available on the
Commission's Web site at http://www.sec.gov.

For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15129 Filed 6-22-10; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register: July 18, 2007 (Volume 72, Number 137)]
[Notices]
[Page 39404-39406]
[DOCID:fr18jy07-59]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Sunshine Act Meeting

July 12, 2007.
    The following notice of meeting is published pursuant to section
3(a) of the government in the Sunshine Act (Pub. L. 94-409), 5 U.S.C
552b:

Agency Holding Meeting: Federal Energy Regulatory Commission.

Date and Time: July 19, 2007, 10 a.m.

Place: Room 2C, 888 First Street, NE., Washington, DC 20426.

Status: Open.

Matters To Be Considered: Agenda.

    *Note-- Items listed on the agenda may be deleted without
further notice.

FOR FURTHER INFORMATION CONTACT: Kimberly D. Bose, Secretary, Telephone
(202) 502-8400. For a recorded message listing items, struck from or
added to the meeting, call<PHONE_NUMBER>.
    This is a list of matters to be considered by the Commission. It
does not include a listing of all documents relevant to the items on
the agenda. All public documents, however, may be viewed on line at the
Commission's Web site at: http://www.ferc.gov using the eLibrary link,

or may be examined in the Commission's Public Reference Room.

                                         921st--Meeting; Regular Meeting
                                            [July 19, 2007, 10 a.m.]
----------------------------------------------------------------------------------------------------------------
        Item No.                     Docket No.                                    Company
----------------------------------------------------------------------------------------------------------------
                                                 Administrative
----------------------------------------------------------------------------------------------------------------
A-1.....................  AD02-1-000......................  Agency Administrative Matters.
A-2.....................  AD02-7-000......................  Customer Matters, Reliability, Security and Market
                                                             Operations.
A-3.....................  AD06-3-000......................  Energy Market Update.
----------------------------------------------------------------------------------------------------------------

                                                    Electric
----------------------------------------------------------------------------------------------------------------
E-1.....................  PL07-1-000......................  FPA Section 203 Supplemental Policy Statement.
E-2.....................  RM07-15-000.....................  Cross-Subsidization Restrictions on Affiliate
                                                             Transactions.
E-3.....................  RM07-21-000.....................  Blanket Authorization Under FPA Section 203.
E-4.....................  RM06-22-000.....................  Mandatory Reliability Standards for Critical
                                                             Infrastructure Protection.
E-5.....................  RM06-16-003.....................  Mandatory Reliability Standards for the Bulk-Power
                                                             System.
E-6.....................  RM06-16-001.....................  Mandatory Reliability Standards for the Bulk-Power
                                                             System.
E-7.....................  Omitted.
E-8.....................  Omitted.
E-9.....................   ER07-577-000, ER07-577-001,      Midwest Independent Transmission System Operator,
                           EL07-79-000.                      Inc.
E-10....................  ER06-18-007, ER06-18-008........  Midwest Independent Transmission System Operator,
                                                             Inc.
E-11....................  Omitted.
E-12....................  ER06-185-008....................  New York Independent System Operator, Inc.
E-13....................  ER02-2560-007...................  Louisville Gas & Electric Company and Kentucky
                                                             Utilities Company.
E-14....................  EC07-66-000, EC07-66-001, EL07-   Entergy Gulf States, Inc., Entergy Gulf States
                           45-000, EL07-45-001.              Louisiana, L.L.C., Entergy Texas, Inc.
                          EC07-88-000.....................  Entergy Gulf States, Inc., Entergy Gulf States
                                                             Louisiana, L.L.C., Entergy Texas, Inc.
E-15....................  EL05-19-002.....................  Golden Spread Electric Cooperative, Inc., Lyntegar
                                                             Electric Cooperative, Inc., Farmers' Electric
                                                             Cooperative, Inc., Lea County Electric Cooperative,
                                                             Inc., Central Valley Electric Cooperative, Inc. and
                                                             Roosevelt County Electric Cooperative, Inc. v.
                                                             Southwestern Public Service Company.
                          ER05-168-001....................  Southwestern Public Service Company.
E-16....................  EL07-16-001.....................  Long Island Power Authority v. New York Independent
                                                             System Operator, Inc.
E-17....................  EL04-49-001.....................  Quachita Power, LLC v. Entergy Louisiana, Inc. and
                                                             Entergy Services, Inc.
----------------------------------------------------------------------------------------------------------------
                                                  Miscellaneous
----------------------------------------------------------------------------------------------------------------
M-1.....................  RM07-16-000.....................  Filing Via the Internet.
----------------------------------------------------------------------------------------------------------------
                                                       Gas
----------------------------------------------------------------------------------------------------------------
G-1.....................  PL07-2-000......................  Composition of Proxy Groups for Determining Gas and
                                                             Oil Pipeline Return on Equity.
G-2.....................  Omitted.
G-3.....................  IN07-7-001, IN07-18-001.........  Nornew Energy Supply, Inc.
G-4.....................  CP05-150-005, CP05-150-006......  Hardy Storage Company, LLC.
G-5.....................  Omitted.
G-6.....................  RP06-408-000....................  Reliant Energy Service, Inc. and CenterPoint Energy
                                                             Resources Corp. v. Kern River Gas Transmission
                                                             Company.
G-7.....................  RP07-139-000, RP07-139-001......  Algonquin Gas Transmission, LLC.
G-8.....................  RP07-149-000....................  Gulf South Pipeline Company.
G-9.....................  OR07-10-000.....................  Calnev Pipe Line LLC.
G-10....................  OR07-5-000......................  ExxonMobil Oil Corporation v. Calnev Pipe Line,
                                                             L.L.C., Kinder Morgan GP Inc. and Kinder Morgan
                                                             Inc.
                          OR07-7-000, OR07-7-001..........  Tesoro Refining and Marketing Company v. Calnev Pipe
                                                             Line, L.L.C.
----------------------------------------------------------------------------------------------------------------
                                                      Hydro
----------------------------------------------------------------------------------------------------------------
H-1.....................  P-2602-005, P-2602-007..........  Duke Energy Carolinas, LLC.
H-2.....................  P-12685-000.....................  Don L. Hansen.
H-3.....................  P-2426-204......................  California Department of Water Resources and the
                                                             City of Los Angeles.
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
                                                  Certificates
----------------------------------------------------------------------------------------------------------------
C-1.....................  CP07-98-000.....................  Southern Natural Gas Company.
C-2.....................  CP07-101-000....................  National Fuel Gas Supply Corporation.
C-3.....................  CP06-335-002, CP96-810-008......  Maritimes & Northeast Pipeline, L.L.C.
----------------------------------------------------------------------------------------------------------------

    A free webcast of this event is available through http://www.ferc.gov.
 Anyone with Internet access who desires to view this

event can do so by navigating to: http://www.ferc.gov's Calendar of

Events and locating this event in the Calendar. The event will contain
a link to its webcast. The Capitol Connection provides technical
support for the free webcasts. It also offers access to this event via
television in the DC area and via phone bridge for a fee. If you have
any questions, visit http://www.CapitolConnection.org or contact

Danelle Perkowski or David Reininger at<PHONE_NUMBER>.
    Immediately following the conclusion of the Commission Meeting, a
press briefing will be held in the Commission Meeting Room. Members of
the public may view this briefing in the designated

overflow room. This statement is intended to notify the public that the
press briefings that follow Commission meetings may now be viewed
remotely at Commission headquarters, but will not be telecast through
the Capitol Connection service.

Kimberly D. Bose,
Secretary.
[FR Doc. E7-13850 Filed 7-17-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 28 (Friday, February 9, 2018)]
[Proposed Rules]
[Pages 5746-5748]
[FR Doc No: 2018-02198]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2018-0072; Product Identifier 2017-NM-082-AD]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc., Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to supersede Airworthiness Directive (AD) 2014-05-
28, for certain Bombardier, Inc., Model DHC-8-400 series airplanes. AD
2014-05-28 requires revising the maintenance or inspection program, as
applicable. Since we issued AD 2014-05-28, we have determined that the
interval from maintenance review board (MRB) task number 323100-202
should not be escalated, and that Certification Maintenance
Requirements (CMR) task number 323100-102 should be applicable to all
Model DHC-8-400 series airplanes, regardless of which main landing gear
(MLG) up-lock assembly is installed. This proposed AD would require
revising the maintenance or inspection program, as applicable. We are
proposing this AD to address the unsafe condition on these products.

DATES: We must receive comments on this proposed AD by March 26, 2018.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     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
Bombardier, Inc., Q-Series Technical Help Desk, 123 Garratt Boulevard,
Toronto, Ontario M3K 1Y5, Canada; telephone:<PHONE_NUMBER>; fax: 416-
375-4539; email: [email protected]; internet: http://www.bombardier.com. You may view this referenced service information at
the FAA, Transport Standards Branch, 1601 Lind Avenue SW, Renton, WA.
For information on the availability of this material at the FAA, call
425-227-1221.

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-2018-
0072; 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
Operations office (telephone:<PHONE_NUMBER>) is in the ADDRESSES
section. Comments will be available in the AD docket shortly after
receipt.

FOR FURTHER INFORMATION CONTACT: Erin Hulverson, Aerospace Engineer,
FAA, Boston ACO Branch, 1200 District Avenue, Burlington, MA 01803;
telephone:<PHONE_NUMBER>.

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-2018-0072;
Product Identifier 2017-NM-082-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 based on 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 issued AD 2014-05-28, Amendment 39-17800 (79 FR 18611, April 3,
2014) (``AD 2014-05-28''), for certain Bombardier, Inc., Model DHC-8-
400 series airplanes.
    AD 2014-05-28 resulted from reports of excessive wear on the lower
latch surface of the MLG up-lock hook. AD 2014-05-28 requires revising
the maintenance or inspection program, as applicable. We issued AD
2014-05-28 to detect and correct up-lock hooks worn beyond the wear
limit, which could prevent the successful extension of the MLG using
the primary landing gear extension system, which in combination with an
alternate extension system failure could result in the inability to
extend the MLG.
    Since we issued AD 2014-05-28, we have determined that the interval
from MRB task number 323100-202 should not be escalated, and that MRB
task number 323100-202 should be applicable to all Model DHC-8-400
series airplanes, regardless of which MLG up-lock assembly is
installed.
    This revised applicability has resulted in CMR task number 323100-
102 also being made applicable to all Model DHC-8-400 series airplanes,
regardless of MLG up-lock assembly part number installation.
    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued Canadian AD CF-2017-15, dated May 29,
2017 (referred to after this as the Mandatory Continuing Airworthiness
Information, or ''the MCAI''), to correct an unsafe condition for
certain Bombardier, Inc., Model DHC-8-400 series airplanes. The MCAI
states:

    [Canadian] AD CF-2012-21 [which corresponds to FAA AD 2014-05-
28] was issued to mandate the incorporation of Maintenance Review
Board (MRB) task number 323100-202. As in-service experience has
shown that the interval for MRB task number 323100-202 should not be
escalated, Bombardier has introduced one-star CMR task number
323100-102 to prevent task escalation. Bombardier has also revised
the applicability of MRB task number 323100-202 to be applicable to
the entire DHC-8-400/-401/-402 fleet, regardless of which main
landing gear (MLG) up-lock assembly part number is installed. This
revised applicability has resulted in CMR task number 323100-102
also being made applicable to the entire DHC-8-400/-401/-402 fleet,
regardless of MLG up-lock assembly part number installation.
    This [Canadian] AD mandates the incorporation of CMR task number
323100-102 [into the maintenance or inspection program, as
applicable].

    You may examine the MCAI in the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
0072.

Related Service Information Under 1 CFR Part 51

    Bombardier, Inc., has issued Q400 Dash 8 Temporary Revision ALI-
0168, dated October 31, 2016, to Section 1-32, Landing Gear Maintenance
Program, of

Maintenance Review Board (MRB) Report Part 2, Bombardier Q400 Dash 8
Maintenance Requirements Manual, Product Support Manual (PSM) 1-84-7.
The service information describes CMR task number 323100-102,
``Functional Check of the Main Landing Gear Uplock Assembly Latch.''
This service information is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are proposing this AD because we
evaluated all pertinent information and determined an unsafe condition
exists and is likely to exist or develop on other products of the same
type design.

Costs of Compliance

    We estimate that this proposed AD affects 69 airplanes of U.S.
registry.
    We estimate that it would take about 1 work-hour per product to
comply with the basic requirements of this proposed AD. The average
labor rate is $85 per work-hour. Based on these figures, we estimate
the cost of this proposed AD on U.S. operators to be $5,865, or $85 per
product.

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13   [Amended]

0
2. The FAA amends Sec.  39.13 by removing Airworthiness Directive (AD)
2014-05-28, Amendment 39-17800 (79 FR 18611, April 3, 2014), and adding
the following new AD:

Bombardier, Inc.: Docket No. FAA-2018-0072; Product Identifier 2017-
NM-082-AD.

(a) Comments Due Date

    We must receive comments by March 26, 2018.

(b) Affected ADs

    This AD replaces AD 2014-05-28, Amendment 39-17800 (79 FR 18611,
April 3, 2014).

(c) Applicability

    This AD applies to Bombardier, Inc., Model DHC-8-400, -401, and
-402 airplanes, certificated in any category, serial numbers 4001,
4003 and subsequent.

(d) Subject

    Air Transport Association (ATA) of America Code 32, Landing
gear.

(e) Reason

    This AD was prompted by reports of excessive wear on the lower
latch surface of the main landing gear (MLG) up-lock hook. We are
issuing this AD to detect and correct up-lock hooks worn beyond the
wear limit, which could prevent the successful extension of the MLG
using the primary landing gear extension system, which in
combination with an alternate extension system failure could result
in the inability to extend the MLG.

(f) Compliance

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

(g) Maintenance or Inspection Program Revision

    Within 30 days after the effective date of this AD, revise the
maintenance or inspection program, as applicable, to incorporate the
information specified in Certification Maintenance Requirements
(CMR) task number 323100-102 of Q400 Dash 8 (Bombardier) Temporary
Revision (TR) ALI-0168, dated October 31, 2016 (``Bombardier TR ALI-
0168''), to Section 1-32, Landing Gear Maintenance Program, of
Maintenance Review Board (MRB) Report Part 2, Bombardier Q400 Dash 8
Maintenance Requirements Manual, Product Support Manual (PSM) 1-84-
7. The applicable maintenance or inspection program revision
required by this paragraph may be done by inserting a copy of
Bombardier TR ALI-0168, to Section 1-32, Landing Gear Maintenance
Program, of MRB Report Part 2, Bombardier Q400 Dash 8 Maintenance
Requirements Manual, PSM 1-84-7. When this temporary revision has
been included in general revisions of the PSM, the general revisions
may be inserted in the maintenance or inspection program, as
applicable, provided the relevant information in the general
revision is identical to that in Bombardier TR ALI-0168.

(h) Initial Functional Check Compliance Times

    For MLG up-lock assembly latches that have accumulated flight
cycles which exceed the CMR task number 323100-102 interval
specified in Bombardier TR ALI-0168: Perform the initial CMR task
number 323100-102 functional check as specified in Bombardier TR
ALI-0168, to Section 1-32, Landing Gear Maintenance Program, of MRB
Report Part 2, Bombardier Q400 Dash 8 Maintenance Requirements
Manual, PSM 1-84-7, using the applicable compliance time

specified in paragraph (h)(1), (h)(2), or (h)(3) of this AD.
    (1) For MLG up-lock assembly latches that have 14,200 total
flight cycles or more as of the effective date of this AD: The
compliance time for doing the initial functional check is within 800
flight cycles after the effective date of this AD.
    (2) For MLG up-lock assembly latches that have 11,600 total
flight cycles or more, but fewer than 14,200 total flight cycles, as
of the effective date of this AD: The compliance time for doing the
initial functional check is within 1,600 flight cycles after the
effective date of this AD, but not to exceed 15,000 total flight
cycles on the up-lock assembly latch.
    (3) For MLG up-lock assembly latches with fewer than 11,600
total flight cycles as of the effective date of this AD: The
compliance time for doing the initial functional check is within
3,000 flight cycles after the effective date of this AD, but not to
exceed 13,200 total flight cycles on the up-lock assembly latch.

(i) Method of Compliance for Initial Functional Check

    Accomplishing MRB task number 323100-202 of Bombardier TR MRB-
66, dated December 7, 2011, to Section 1-32, Landing Gear
Maintenance Program, of MRB Report Part 1, Bombardier Q400 Dash 8
Maintenance Requirements Manual, PSM 1-84-7, within 3,000 flight
cycles before the effective date of this AD, is a method of
compliance for the initial functional check required by CMR task
number 323100-102 as specified in Bombardier TR ALI-0168, to Section
1-32, Landing Gear Maintenance Program, of MRB Report Part 2,
Bombardier Q400 Dash 8 Maintenance Requirements Manual, PSM 1-84-7.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO 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 ACO, send it
to ATTN: Program Manager, Continuing Operational Safety, FAA, New
York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590;
telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>. 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.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, New York ACO
Branch, FAA; or Transport Canada Civil Aviation (TCCA); or
Bombardier, Inc., TCCA Design Approval Organization (DAO). If
approved by the DAO, the approval must include the DAO-authorized
signature.

(k) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) Canadian AD CF-2017-15, dated May 29, 2017, for related
information. This MCAI may be found in the AD docket on the internet
at http://www.regulations.gov by searching for and locating Docket
No. FAA-2018-0072.
    (2) For more information about this AD, contact Erin Hulverson,
Aerospace Engineer, FAA, Boston ACO Branch, 1200 District Avenue,
Burlington, MA 01803; telephone:<PHONE_NUMBER>.
    (3) For service information identified in this AD, contact
Bombardier, Inc., Q-Series Technical Help Desk, 123 Garratt
Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone: 416-375-
4000; fax:<PHONE_NUMBER>; email: [email protected]mbardier.com;
internet: http://www.bombardier.com. You may view this service
information at the FAA, Transport Standards Branch, 1601 Lind Avenue
SW, Renton, WA. For information on the availability of this material
at the FAA, call<PHONE_NUMBER>.

    Issued in Renton, Washington, on January 25, 2018.
Michael Kaszycki,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2018-02198 Filed 2-8-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: April 30, 2010 (Volume 75, Number 83)]
[Notices]
[Page 22774-22775]
[DOCID:fr30ap10-65]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD10-1-010]

Review of Cost Submittals by Other Federal Agencies for
Administering Part I of the Federal Power Act; Notice Requesting
Questions and Comments on Other Federal Agency Cost Submissions for
Fiscal Year 2009

April 22, 2010.
    In its Order On Rehearing Consolidating Administrative Annual
Charges Bill Appeals And Modifying Annual Charges Billing Procedures,
109 FERC ] 61,040 (2004) (October 8 Order), the Commission set forth an
annual process for Other Federal Agencies (OFAs) to submit their costs
related to Administering Part I of the Federal Power Act. Pursuant to
the established process, the Director of the Financial Services
Division, Office of the Executive Director, on October 22, 2009, issued
a letter requesting the OFAs to submit their costs by January 21, 2010
using the OFA Cost Submission Form.
    Upon receipt of the agency submissions, the Commission posted the
information in eLibrary, and issued, on March 11, 2010, a notice
announcing the date for a technical conference to review the submitted
costs. On April 14, 2010, the Commission held the technical conference.
Technical conference transcripts, submitted cost forms, and detailed
supporting documents are all available for review under Docket No.
AD10-1 on the Commission's eLibrary and are accessible on-line at
http://www.ferc.gov, using the ``eLibrary'' link and are 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>.
    Those interested may file specific questions and comments on the FY
2009 OFA cost submissions with the Commission under Docket No. AD10-1-
010, no later than May 7, 2010. Once filed, the Commission will forward
the

questions and comments to the OFAs for response.
    Anyone with questions pertaining to the technical conference or
this notice should contact W. Doug Foster at<PHONE_NUMBER> (via e-mail
at doug.foster@ferc.gov), or Fannie Kingsberry at<PHONE_NUMBER> (via
e-mail at fannie.kingsberry@ferc.gov).

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-10059 Filed 4-29-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 187 (Thursday, September 26, 2013)]
[Rules and Regulations]
[Pages 59226-59228]
[FR Doc No: 2013-23516]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 117

[Docket No. FAA-2013-0655]

Clarification of Implementation of Regulations and Exemption
Policy With Regard to Early Implementation and Transition

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Clarification and Exemption Policy.

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SUMMARY: The FAA has issued a final flight, duty, and rest rule that
will go into effect on January 4, 2014. This document provides an
interpretation clarifying that the new flight, duty, and rest rule will
apply to a flight duty period that begins on or after January 4, 2014.
This document also clarifies FAA policy with regard to: exemption
petitions asking for an early implementation date for the requirements
of part 117; and exemption petitions asking for an early transition to
the requirements of part 117.

DATES: Send exemption requests to the docket on or before October 15,
2013.

ADDRESSES: Send exemption requests identified by docket number FAA-
2013-0655 using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for making your
submission electronically.
     Mail: Send the exemption petition to Docket Operations, M-
30; U.S. Department of Transportation (DOT), 1200 New Jersey Avenue
SE., Room W12-140, West Building Ground Floor, Washington, DC 20590-
0001.
     Hand Delivery or Courier: Take the exemption petition to
Docket Operations in Room W12-140 of the West Building Ground Floor at
1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax the exemption petition to Docket Operations at
202-493-2251.
    Docket: Documents received may be read at http://www.regulations.gov at any time. Follow the online instructions for
accessing the docket or go to the Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions, contact Dale
E. Roberts, Air Transportation Division, Flight Standards Service,
Federal Aviation Administration; email<EMAIL_ADDRESS>For
legal questions, contact Alex Zektser, Office of the Chief Counsel,
Regulations Division, Federal Aviation Administration; email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    On January 4, 2012, the FAA published a final rule entitled,
``Flightcrew Member Duty and Rest Requirements.'' \1\ In that rule, the
FAA created a new part, part 117, which generally contains new flight,
duty, and rest regulations for part 121 passenger operations and
certain part 91 operations. Part 117 will go into effect on January 4,
2014.\2\
---------------------------------------------------------------------------

    \1\ Flightcrew Member Duty and Rest Requirements Final Rule, 77
FR 330 (Jan. 4, 2012).
    \2\ Flightcrew Member Duty and Rest Requirements; Technical
Correction, 78 FR 11090 (Feb. 15, 2013).
---------------------------------------------------------------------------

    Recently, the FAA received questions about the exact time at which
part 117 will apply to a certificate holder's operations on or after
January 4, 2014. The FAA also received a petition, submitted by
Airlines for America (A4A) and the Regional Airline Association (RAA),
asking for an industry-wide exemption to permit certificate-holder
implementation of part 117 prior to January 4. In addition,
representatives from American Airlines and A4A have met with FAA
officials and requested that FAA consider allowing airlines to switch
to part 117 in a phased approach over a multi-day period.
    This document responds to the concerns raised in the implementation
questions, the A4A/RAA exemption petition, and the American Airlines/
A4A meeting. First, this document provides an interpretation clarifying
at which point on or after January 4, 2014, a certificate holder must
apply part 117 to its operations. Second, this document makes several
findings with regard to exemption petitions from individual certificate
holders asking for permission to implement part 117 prior to January 4.
Third, this document clarifies FAA policy with regard to exemption
petitions from individual certificate holders asking for a phased
transition to the requirements of part 117. Fourth, this document
provides some guidelines to individual certificate holders for
submitting exemption petitions for early implementation and/or early
transition to part 117.

Discussion

A. Applicability of Part 117 on January 4, 2014

    As stated above, part 117 will become effective on January 4,
2014.\3\ The regulatory text of part 117 does not contain a grandfather
clause that would exempt operations that commence prior to January 4.
Thus, part 117 could be interpreted as immediately applying to all part
121 passenger operations taking place at midnight on January 4.
---------------------------------------------------------------------------

    \3\ Id.
---------------------------------------------------------------------------

    However, such an interpretation would take a narrow view regarding
how part 121 passenger operations are to transition to the new part 117
requirements. This is because Sec.  117.25 requires that a flightcrew
member be provided with a 10-hour rest period that includes an 8-hour
sleep opportunity immediately prior to beginning a flight duty period
(FDP) under part 117. If part 117 was to become immediately applicable
on midnight January 4, flightcrew members conducting part 121 passenger
operations at that time would be confronted with the requirements of
Sec.  117.25 in the middle of their duty day.
    To avoid this scenario, the FAA clarifies the implementation of
part 117 as follows. A flightcrew member who begins a duty day under
part 121 prior to January 4, 2014 is allowed to complete that duty day
on January 4 under the flight, duty, and rest rules in effect at the
time that the duty day commenced. However, once the duty day ends and
the flightcrew member is released to begin a rest period, that
flightcrew member is then subject to the provisions of part 117.
    We note that there are some provisions in the flight, duty, and
rest regulations of part 121 that, in certain situations, require an
extended rest period after a duty day ends.\4\ Accordingly, we
emphasize that the rest period received by a flightcrew member
switching from part 121 flight, duty, and rest rules to part 117 must
comply with both Sec.  117.25 and the pertinent flight, duty, and rest
rules of part 121.\5\
---------------------------------------------------------------------------

    \4\ See, e.g., 14 CFR 121.503(b) (requiring a 16-hour rest
period if a pilot has flown for more than eight hours in a 24-
consecutive-hour period).
    \5\ We note, however, that the regulations do not require that
the rest period provided under Sec.  117.25 be kept separate from
the rest period provided under Subparts Q, R, and S of part 121. A
single rest period would be sufficient if it satisfies all of the
pertinent flight, duty, and rest requirements. For example, a 16-
hour rest period with an 8-hour sleep opportunity would satisfy both
Sec.  117.25(e) and Sec.  121.503(b).

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

B. FAA Findings With Regard to Exemption Petitions Asking for Early
Implementation

    The A4A and RAA exemption petition asks the FAA to provide an
exemption to A4A and RAA members and all similarly situated air
carriers that would allow those carriers to implement part 117 early
(between December 9, 2013 and January 4, 2014). In lieu of granting A4A
and RAA's exemption petition, the FAA makes the following findings with
regard to individual certificate holder exemption petitions asking for
an early implementation of part 117.
    In order to grant an exemption, the FAA must find that granting the
exemption: (1) would not have an adverse effect on safety; and (2)
would be in the public interest.\6\ As discussed below, we find that
granting an individual certificate holder's exemption petition asking
for early implementation of part 117 would not have an adverse effect
on safety and would be in the public interest. We also find that these
individual certificate holder exemption petitions do not need to be
published in the Federal Register.
---------------------------------------------------------------------------

    \6\ See 14 CFR 11.81(d) and (e).
---------------------------------------------------------------------------

1. No Adverse Effect on Safety
    We note that, as A4A and RAA's petition points out, the regulatory
standards in part 117 contain the latest fatigue-related safety
standard promulgated by the FAA. Because granting an exemption petition
asking for early implementation of part 117 would result in a
certificate holder voluntarily switching sooner to this latest safety
standard, we find that early implementation of part 117 in a
certificate holder's operations would not adversely affect safety.
2. Public Interest
    With regard to public interest, A4A and RAA's petition points out
that allowing carriers to implement part 117 on different days will
reduce the system vulnerability caused by an entire industry switching
crew planning software and algorithms on the same day. The petition
also states that switching to part 117 prior to January 4 will allow
carriers to make the switch prior to the heaviest holiday travel days.
We agree with these points and accordingly find that granting an
individual exemption for early implementation of part 117 would be in
the public interest.
3. Public Comment on Individual Exemption Petitions
    The FAA generally publishes a summary of an exemption petition in
the Federal Register and invites public comment on the petition.\7\
However, in certain circumstances, the FAA does not seek public comment
on a petition for an exemption. One of those circumstances is present
when delaying action on the petition would result in an adverse
effect.\8\
---------------------------------------------------------------------------

    \7\ See 14 CFR 11.85.
    \8\ Sec.  11.87(c).
---------------------------------------------------------------------------

    In this case, the individual petitions for exemption would deal
with a final rule that will go into effect on January 4, and those
petitions will seek to implement the rule prior to January 4. Because
this implementation is close and because there are multiple significant
tasks that must be done in order to prepare for the implementation, we
find that delaying action on an individual petition requesting an
exemption to implement part 117 early would result in an adverse
effect. Thus, individual exemption petitions asking for early
implementation of part 117 do not need to be published for notice and
comment in the Federal Register.

C. FAA Policy With Regard to Exemption Requests Asking for Early
Transition

    We note that under both the clarification and early-implementation
exemption discussed above, a certificate holder would have to
essentially switch all of its affected operations to part 117 in about
a 24-hour period. If an individual certificate holder chooses to obtain
an early-implementation exemption, that certificate holder will still
have to switch its operations in the manner discussed in Section A
above; the date of the switch will simply be different.
    However, as American Airlines and A4A pointed out, some certificate
holders plan their schedules in multi-day blocks, and switching their
affected operations in 24-hour period could be burdensome. To address
this concern, the FAA will consider individual certificate-holder
petitions asking for an exemption to conduct a phased early transition
to part 117.
    Part 117 early-transition exemptions will work as follows. A
certificate holder will establish an early-transition date. During the
time between the transition and implementation dates, the certificate
holder will be permitted to switch individual flightcrew members to
operate under part 117 without having to switch all of its operations
and flightcrew members into part 117. Under this exemption, once a
flightcrew member has been switched to part 117, that flightcrew member
would not be permitted to switch back to the part 121 flight, duty, and
rest rules during the transition period.
    The FAA believes that this approach may benefit some certificate
holders, as it would permit them to conduct a phased switch of their
operations to part 117 over the course of a longer period of time
instead of switching all affected operations in a single day. As such,
the FAA finds, for the reasons stated in the previous section, that
granting individual exemption petitions asking for an early transition
period would: (1) Not adversely affect safety; (2) be in the public
interest; and (3) not need to be published for notice and comment in
the Federal Register because delaying action on the petition would
result in an adverse effect.

D. Guidelines for Submission of Exemption Petitions

    We note that the FAA is currently undergoing an internal transition
to administering and overseeing part 117. As such, an exemption
petition asking to implement or transition to part 117 earlier than
December 1, 2013, will be denied, as the FAA may not have completed its
internal transition prior to December 1.
    Exemption petitions asking for early transition and/or early
implementation of part 117 should be submitted to Docket No. FAA-2013-
0655. The FAA will respond to all individual certificate holder
exemption petitions asking for early implementation and/or early
transition to part 117 prior to the date that the carrier wishes to
begin using the exemption if the exemption request is received in
Docket No. FAA-2013-0655 on or before October 15, 2013. The FAA will
consider exemption petitions filed after October 15, but due to
workload, a carrier submitting an exemption petition after October 15,
2013, may not get an FAA response to its petition within the desired
timeframe. In addition, we ask that an exemption petition: (1) specify
whether the petition is seeking early implementation of part 117, an
early transition to part 117, or both; and (2) specify the dates for
early implementation and/or early transition to part 117.

    Issued in Washington, DC, on September 19, 2013.
Mark W. Bury,
Acting Assistant Chief Counsel for International Law, Legislation and
Regulations.
John S. Duncan,
Director, Flight Standards Service.
[FR Doc. 2013-23516 Filed 9-24-13; 11:15 am]
BILLING CODE 4910-13-P


[Federal Register Volume 83, Number 52 (Friday, March 16, 2018)]
[Notices]
[Pages 11807-11808]
[FR Doc No: 2018-05331]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82856; File No. SR-OCC-2018-001]

Self-Regulatory Organizations; The Options Clearing Corporation;
Order Approving Proposed Rule Change Related to The Options Clearing
Corporation's Fee Policy

March 12, 2018.
    On January 18, 2018, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ proposed rule change SR-
OCC-2018-001. The proposed rule change was published for comment in the
Federal Register on January 30, 2018,\3\ and the Commission did not
receive any comments. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 82576 (January 24,
2018), 83 FR 4324 (January 30, 2018) (SR-OOC-2018-001) (``Notice'').
---------------------------------------------------------------------------

I. Description of the Proposed Rule Change

A. Background

    As stated in the Notice, OCC filed the proposed Fee Policy to
reduce the permitted implementation time for proposed changes to its
Schedule of Fees.\4\ Under the current Fee Policy, any change to the
Schedule of Fees resulting from a review by OCC's Board of Directors
(``Board'') \5\ will be implemented no sooner than 60 days after filing
the revised Schedule of Fees with the Commission as a proposed rule
change.
---------------------------------------------------------------------------

    \4\ See Notice at 4324.
    \5\ See Notice at 4325 (stating that the authority to review and
approve changes to OCC's fees pursuant to the Capital Plan has been
delegated to the Compensation and Performance Committee of the
Board). See also OCC Compensation and Performance Committee Charter,
available at: http://www.optionsclearing.com/components/docs/about/corporate-information/performance_committee_charter.pdf.
---------------------------------------------------------------------------

B. The Proposed Rule Change to OCC's Fee Policy

    OCC's By-Laws require OCC to set its fee structure so that it is
sufficient to: (1) Cover OCC's operating expenses plus a Business Risk
Buffer (``Buffer''); \6\ (2) maintain reserves deemed reasonably
necessary by OCC's Board; and (3) accumulate an additional surplus
deemed advisable by the Board to permit OCC to meet its obligations to
its Clearing Members and the public.\7\ As part of the Fee Policy, OCC
sets fees at a level that will cover its estimated operating expenses
plus the additional 25% Buffer, with OCC conducting quarterly reviews
to manage revenues as close to the Buffer as possible. OCC stated that
the Board may rely on recommendations of OCC staff based on analyses of
year-to-date revenue and operating expenses, as well as projected
clearing volume and operating expenses to determine the proper level of
fees to achieve the Buffer.\8\
---------------------------------------------------------------------------

    \6\ The Buffer is an amount of fee revenue that OCC targets
above its anticipated operating expenses to allow for unexpected
fluctuations in operating expenses, business capital needs, and
regulatory capital requirements.
    \7\ See OCC's By-Laws, Art. IX, Sec. 9. In the Notice at 4325,
OCC noted that clauses two and three above would be invoked only at
the discretion of OCC's Board and in extraordinary circumstances.
    \8\ See Notice at 4325.
---------------------------------------------------------------------------

    As stated in the Notice, OCC believes that the current 60-day
implementation period under the Fee Policy: (i) Increases the
difficulty of projecting appropriate fee levels needed to cover its
operating expenses and the Buffer because of the amount of time that
passes between OCC's analysis of the data supporting the fee change and
the subsequent implementation of the fee change; (ii) increases the
risk that by the time the fee change is implemented, the extended delay
in implementation may result in revenues that diverge (either higher or
lower) further from the target Buffer; and (iii) increases the impact
of fee changes on participants due to the delayed implementation
timing.\9\ OCC states that the effects of delayed implementation
described above may result in OCC needing to make more frequent and/or
more dramatic changes to its Schedule of Fees in order to maintain its
target Buffer, resulting in less stability in fees for OCC's
participants.\10\ OCC states that reducing the 60-day implementation
period to thirty days would allow for fee adjustments that are based on
revenue and expense data that is more current, and therefore
projections that are more accurate.\11\ OCC further states that it
believes the proposed Fee Policy would improve its ability to set fees
at the level required by the Fee Policy while still providing adequate
notice to its participants of any proposed fee changes.\12\
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    \9\ See id. OCC further stated that, because it generally
implements fee changes on the first of the month, the actual delay
in implementing a proposed fee change may be significantly longer
than 60 days depending on the timing of Board approval of any fee
change and subsequent filing of the associated proposed rule change.
    \10\ See id.
    \11\ See id.
    \12\ See id.
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II. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \13\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and rules and regulations thereunder applicable
to such organization. The Commission finds that the proposed Fee Policy
is consistent with Section 17A(b)(3)(F) of the Act \14\ and Rule 17Ad-
22(e)(21) \15\ thereunder, as described in detail below.
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    \13\ 15 U.S.C. 78s(b)(2)(C).
    \14\ 15 U.S.C. 78q-1(b)(3)(F).
    \15\ 17 CFR 240.17Ad-22(e)(21).
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A. Consistency With Section 17A(b)(3)(F) of the Act

    Section 17A(b)(3)(F) of the Act requires that the rules of a
clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions and the protection
of investors and the public interest.\16\ As described above,

the Fee Policy requires OCC to set fees at a level sufficient to cover
its operating expenses plus a Buffer. Conducting quarterly reviews
allows OCC to monitor the fees collected and make any necessary
adjustments to maintain the Buffer. However, delayed implementation of
fee changes due to the 60-day waiting period and OCC's preference to
introduce such changes at the beginning of the month increase the risk
of an inaccurate fee calculation, which could in turn result in OCC
collecting inadequate resources to cover its operating expenses and
maintain the Buffer.
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    \16\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission believes that setting clearing fees based on more
current information would allow OCC to more accurately set and collect
fees necessary to support its operations, and promote the prompt and
accurate clearance and settlement of securities transactions. The
Commission further believes that accurate fee calculations supports the
protection of investors and the public by protecting participants from
large and unexpected swings in fee levels resulting from fee schedules
based upon stale and outdated information. While the proposed Fee
Policy would shorten the notice period for implementation, the
Commission believes that thirty days still provides sufficient notice
for Clearing Members to make adjustments to their activity as a result
of any impending fee change. Accordingly, the Commission finds that the
proposed Fee Policy promotes the prompt and accurate settlement of
securities transactions and protection of investors and the public
interest, consistent with Section 17A(b)(3)(F) of the Act.\17\
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    \17\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Consistency With Rule 17Ad-22(e)(21)

    Rule 17Ad-22(e)(21) requires, in part, that a covered clearing
agency establish, implement, maintain, and enforce written policies and
procedures that are reasonably designed to be efficient and effective
in meeting the requirements of its participants and the markets it
serves.\18\
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    \18\ 17 CFR 240.17Ad-22(e)(21).
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    The Fee Policy requires OCC to set fees at levels designed to cover
its operating expenses and to maintain the Buffer. As discussed above,
the proposed Fee Policy would reduce the implementation period for fee
changes from sixty to thirty days. The Commission believes the proposed
change would enhance the efficiency and effectiveness of OCC's fee
calculations by using more current expense and revenue information,
thereby leading to more accurate fee projections. Improving the
efficiency and effectiveness of OCC's fee calculation process ensures
that OCC is able to cover its operating expenses and maintain the
Buffer, while also reducing the possibility of large and unexpected
swings in fees that could result from using stale and outdated
information. Accordingly, the Commission finds that the proposed Fee
Policy would enhance OCC's efficiency and effectiveness in setting
accurate fees necessary to cover its operating expenses and the Buffer,
thereby enhancing its efficiency and effectiveness to meet the
requirements of its participants and the markets it serves, consistent
with Rule 17Ad-22(e)(21).\19\
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    \19\ Id.
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed Fee Policy is consistent with the requirements of the Act, and
in particular, with the requirements of Section 17A of the Act \20\ and
Rule 17Ad-22(e)(21) \21\ thereunder.
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    \20\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \21\ 17 CFR 240.17Ad-22(e)(21).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\22\ that the proposed rule change (SR-OCC-2018-001) be, and it
hereby is, approved.
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    \22\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated Authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-05331 Filed 3-15-18; 8:45 am]
 BILLING CODE 8011-01-P