[Federal Register Volume 77, Number 241 (Friday, December 14, 2012)]
[Notices]
[Pages 74540-74543]
[FR Doc No: 2012-30165]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68390; File No. SR-BATS-2012-042]

Self-Regulatory Organizations; BATS Exchange, Inc.; Order
Granting Approval of Proposed Rule Change To List and Trade Shares of
the iShares Sovereign Screened Global Bond Fund

December 10, 2012.

I. Introduction

    On October 12, 2012, BATS Exchange, Inc. (``Exchange'' or ``BATS'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the
iShares Sovereign Screened Global Bond Fund (``Fund'') under BATS Rule
14.11(i). The proposed rule change was published for comment in the
Federal Register on October 30, 2012.\3\ The Commission received no
comments on the proposed rule change. This order grants approval of the
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 68094 (October 24,
2012), 77 FR 65740 (``Notice'').
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II. Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Fund pursuant
to BATS Rule 14.11(i), which governs the listing and trading of Managed
Fund Shares on the Exchange. The Shares will be offered by iShares
Sovereign Screened Global Bond Fund, Inc. (``Company''),\4\ a Maryland
corporation that is registered with the Commission as an open-end
investment company. BlackRock Fund Advisors is the investment adviser
(``BFA'' or ``Adviser'') to the Fund. BlackRock International Limited
serves as sub-adviser for the Fund (``Sub-Adviser'').\5\

State Street Bank and Trust Company is the administrator, custodian,
and transfer agent for the Company, and BlackRock Investments, LLC is
the distributor for the Company. The Exchange states that the Adviser
and the Sub-Adviser are both affiliated with multiple broker-dealers
and have both implemented fire walls with respect to such broker-dealer
affiliates regarding access to information concerning the composition
and/or changes to the Fund's portfolio.\6\
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    \4\ See Registration Statement on Form N-1A for the Company,
dated March 5, 2012 (File Nos. 333-179905 and 811-22674)
(``Registration Statement''). The Commission has issued an order
granting certain exemptive relief (``Exemptive Order'') to the
Company under the Investment Company Act of 1940. See Investment
Company Act Release No. 29571 (January 24, 2011) (File No. 812-
13601).
    \5\ The Adviser manages the Fund's investments and its business
operations subject to the oversight of the Board of Directors of the
Company (``Board''). While BFA is ultimately responsible for the
management of the Fund, it is able to draw upon the trading,
research, and expertise of its asset management affiliates for
portfolio decisions and management with respect to portfolio
securities. Portfolio managers employed by the Adviser are generally
responsible for day-to-day management of the Fund and, as such,
typically make all decisions with respect to portfolio holdings. The
Adviser also has ongoing oversight responsibility. The Sub-Adviser,
subject to the supervision and oversight of the Board and BFA, will
be primarily responsible for execution of securities transactions
outside the United States and Canada and may, from time to time,
participate in the management of specified assets in the Fund's
portfolio. The Sub-Adviser may be responsible for the day-to-day
management of the Fund.
    \6\ See BATS Rule 11.14(i)(7). In the event (a) the Adviser or
Sub-Adviser becomes newly affiliated with a broker-dealer, or (b)
any new adviser or sub-adviser becomes affiliated with a broker-
dealer, they will implement a fire wall with respect to such broker-
dealer regarding access to information concerning the composition
and/or changes to the portfolio, and will be subject to procedures
designed to prevent the use and dissemination of material, non-
public information regarding such portfolio.
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iShares Sovereign Screened Global Bond Fund

    The Fund will seek to generate current income while striving to
mitigate downside risk by investing principally in global sovereign
debt obligations. To achieve its objective, the Fund will invest, under
normal circumstances,\7\ at least 80% of its net assets in sovereign
government bonds from both developed and emerging market countries. In
the absence of normal circumstances, the Fund may temporarily depart
from its normal investment process, provided that such departure is, in
the opinion of the portfolio management team of the Fund, consistent
with the Fund's investment objective and in the best interest of the
Fund. For example, the Fund may hold a higher than normal proportion of
its assets in cash in response to adverse market, economic, or
political conditions.
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    \7\ The term ``under normal circumstances'' includes, but is not
limited to, the absence of adverse market, economic, political, or
other conditions, including extreme volatility or trading halts in
the fixed income markets or the financial markets generally;
operational issues causing dissemination of inaccurate market
information; or force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption, or any similar intervening
circumstance.
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    The Fund will hold sovereign debt obligations of at least 13 non-
affiliated issuers. The Fund will not purchase the securities of
issuers conducting their principal business activity in the same
industry if, immediately after the purchase and as a result thereof,
the value of the Fund's investments in that industry would equal or
exceed 25% of the current value of the Fund's total assets, provided
that this restriction does not limit the Fund's: (i) Investments in
securities of other investment companies; (ii) investments in
securities issued or guaranteed by the U.S. government, its agencies,
or instrumentalities; or (iii) investments in repurchase agreements
collateralized by U.S. government securities. The Fund will not invest
in equity securities.
    The Fund intends to qualify each year as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as
amended.\8\
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    \8\ 26 U.S.C. 851.
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Sovereign Debt

    The Fund intends to achieve its investment objective by investing,
under normal circumstances, at least 80% of its net assets in bonds
denominated in local currencies and the U.S. dollar, issued by
governments in both developed and emerging market countries.
    The Fund intends to maintain specific exposure to global government
bonds with targeted investment characteristics. The Adviser will
utilize a model-based proprietary investment process to assemble the
investment portfolio from a defined group of developed and emerging
market countries across all credit rating categories, including below
investment grade. The investment process primarily will utilize the
universe of sovereign debt issuers included in the BlackRock Sovereign
Risk Index, a proprietary model that scores countries using a
comprehensive list of relevant fiscal, financial, and institutional
metrics to assess sovereign credit risk. These country scores, along
with other model-driven factors, will be used to construct the Fund's
investment portfolio by screening out lower scoring countries and
weighting the remaining sovereigns based on their scores. According to
the Exchange, as of July 31, 2012, there were 48 countries in the
universe of eligible countries, any of which may or may not be held by
the Fund.\9\ This proprietary investment process is intended to provide
an increased exposure to sovereign debt securities issued by countries
with higher credit quality, as defined by the model, than would a fund
that seeks to replicate the performance of a broad global government
bond index that is weighted more heavily towards countries based on
their amount of debt outstanding. According to the Exchange, as of July
31, 2012, the following countries were included in the universe of
eligible countries: Argentina, Australia, Austria, Belgium, Brazil,
Canada, Chile, China, Colombia, Croatia, the Czech Republic, Denmark,
Egypt, Finland, France, Germany, Greece, Hungary, India, Indonesia,
Ireland, Israel, Italy, Japan, Malaysia, Mexico, the Netherlands, New
Zealand, Norway, Peru, the Philippines, Poland, Portugal, Russia,
Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain,
Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom, the
United States, and Venezuela.\10\ Countries may be added to, eliminated
from, or replaced in the universe of eligible countries at any time,
and the model may score countries differently over time, which means
that countries may be added to, deleted from, or re-weighted within the
model.
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    \9\ Countries must have at least $5 billion of outstanding debt
principal amounts at the beginning of the calendar year in order to
be included in the eligible universe.
    \10\ According to the Exchange, each country's approximate value
of outstanding debt principal amounts as of July 31, 2012, is as
follows (in billions): Argentina $160; Australia $246; Austria $248;
Belgium $421; Brazil $498; Canada $865; Chile $58; China $1,216;
Colombia $76; Croatia $22; the Czech Republic $79; Denmark $133;
Egypt $116; Finland $106; France $1,696; Germany $1,347; Greece
$169; Hungary $86; India $593; Indonesia $112; Ireland $109; Israel
$151; Italy $2,007; Japan $11,554; Malaysia $142; Mexico $379; the
Netherlands $384; New Zealand $58; Norway $64; Peru $27; the
Philippines $98; Poland $221; Portugal $143; Russia $140; Singapore
$136; Slovakia $40; Slovenia $18; South Africa $138; South Korea
$380; Spain $844; Sweden $143; Switzerland $98; Taiwan $162;
Thailand $104; Turkey $265; the United Kingdom $1,878; the United
States $10,743; and Venezuela $72.
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    The universe of sovereign debt currently includes securities that
are rated ``investment grade'' as well as ``below investment grade.''
\11\ The Fund will not invest in distressed debt. The Fund expects
that, under normal circumstances, the securities included in the Fund
will be primarily investment grade. According to the Exchange, as of
July 31, 2012, 97% of the securities in the BlackRock Sovereign Risk
Index were rated investment grade.
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    \11\ When constructing the model, the distribution of ratings
across issues in each country will be considered in order to ensure
that no single issue is over weighted and that the model is
diversified. The ratings-based caps will be imposed on a per country
basis, and will be generally as follows: AAA/AA=5%; A=4%; BBB=3%;
Junk=2% (ratings are averaged across Moody's and S&P).
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    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to enhance leverage. Under
normal circumstances, the effective duration of

the Fund's portfolio is expected to be 5-7 years, as calculated by the
Adviser.

Other Portfolio Holdings

    While the Fund will invest at least 80% of its net assets in bonds
denominated in local currencies and the U.S. dollar issued by
governments in both developed and emerging market countries, the
Adviser expects that, under normal market circumstances, the Fund
intends to invest its remaining assets in money market securities (as
described below) in a manner consistent with its investment objective
in order to help manage cash flows in and out of the Fund, such as in
connection with payment of dividends or expenses, and to satisfy margin
requirements, to provide collateral, or to otherwise back investments
in derivative instruments. For these purposes, money market securities
include: Short-term, high-quality obligations issued or guaranteed by
the U.S. Treasury or the agencies or instrumentalities of the U.S.
government; short-term, high-quality securities issued or guaranteed by
non-U.S. governments, agencies, and instrumentalities; repurchase
agreements backed by U.S. government securities; money market mutual
funds; and deposits and other obligations of U.S. and non-U.S. banks
and financial institutions. All money market securities acquired by the
Fund will be rated investment grade. The Fund does not intend to invest
in any unrated money market securities. However, it may do so, to a
limited extent, such as where a rated money market security becomes
unrated, if such money market security is determined by the Adviser or
the Sub-Adviser to be of comparable quality.
    Additionally, the Fund may hold up to an aggregate amount of 15% of
its net assets in illiquid securities (calculated at the time of
investment), including Rule 144A securities. The Fund will monitor its
portfolio liquidity on an ongoing basis to determine whether, in light
of current circumstances, an adequate level of liquidity is being
maintained, and will consider taking appropriate steps in order to
maintain adequate liquidity if, through a change in values, net assets,
or other circumstances, more than 15% of the Fund's net assets are held
in illiquid securities. Illiquid securities include securities subject
to contractual or other restrictions on resale and other instruments
that lack readily available markets as determined in accordance with
Commission staff guidance.
    Pursuant to the Exemptive Order, the Fund will not invest in swap
agreements, futures contracts, or option contracts. The Fund may invest
in currency forwards for hedging against foreign currency exchange rate
risk and/or trade settlement purposes.
    Additional information regarding the Shares and the Fund, including
investment strategies, risks, creation and redemption procedures, fees
and expenses, portfolio holdings disclosure policies, distributions,
taxes, and reports to be distributed to beneficial owners of the Shares
can be found in the Notice,\12\ the Registration Statement,\13\ or on
the Web site for the Fund (www.iShares.com), as applicable.
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    \12\ See supra note 3.
    \13\ See supra note 4.
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III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \14\
and the rules and regulations thereunder applicable to a national
securities exchange.\15\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\16\
which requires, among other things, that the Exchange's rules be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, 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 Commission notes that
the Fund and the Shares must comply with the requirements of BATS Rule
14.11(i) to be listed and traded on the Exchange.
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    \14\ 15 U.S.C. 78f.
    \15\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \16\ 15 U.S.C. 78f(b)(5).
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    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\17\ which sets forth Congress's finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last-
sale information for the Shares will be available on the facilities of
the Consolidated Tape Association (``CTA''). In addition, the Intraday
Indicative Value, as defined in BATS Rule 14.11(i)(3)(C), will be
updated and widely disseminated by one or more major market data
vendors at least every 15 seconds during the Exchange's Regular Trading
Hours.\18\ On each business day, before commencement of trading in
Shares during Regular Trading Hours on the Exchange, the Fund will
disclose on its Web site the Disclosed Portfolio, as defined in BATS
Rule 14.11(i)(3)(B), held by the Fund that will form the basis for the
Fund's calculation of NAV at the end of the business day.\19\ The NAV
of the Fund's Shares generally will be calculated once daily Monday
through Friday as of the close of regular trading on the New York Stock
Exchange (generally 4:00 p.m. Eastern Time). Information regarding
market price and trading volume of the Shares will be continually
available on a real-time basis throughout the day on brokers' computer
screens and other electronic services. Information regarding the
previous day's closing price and trading volume information for the
Shares will be published daily in the financial section of newspapers.
Intraday, executable price quotations on sovereign bonds and other
assets are available from major broker-dealer firms. Such intraday
information is also available through subscription services, such as
Bloomberg, Thomson Reuters, and International Data Corporation. The
Fund's Web site will include a form of the prospectus for the Fund and
additional data relating to NAV and other applicable quantitative
information.
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    \17\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \18\ According to the Exchange, several major market data
vendors display and/or make widely available Intraday Indicative
Values published via the CTA or other data feeds. The Exchange notes
that the quotations of certain of the Fund's holdings may not be
updated during U.S. trading hours if such holdings do not trade in
the United States or if updated prices cannot be ascertained.
Further, there may be periods of time during Regular Trading Hours
during which the Intraday Indicative Value would be static to the
extent securities that comprise the Fund's holdings are not actively
trading.
    \19\ The Disclosed Portfolio will include, as applicable, the
names, quantity, percentage weighting, and market value of fixed
income securities and other assets held by the Fund and the
characteristics of such assets. The Web site and information will be
publicly available at no charge.
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    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Commission notes that the Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that

the NAV and the Disclosed Portfolio will be made available to all
market participants at the same time.\20\ In addition, trading in the
Shares will be subject to BATS Rule 14.11(i)(4)(B)(iv), which sets
forth circumstances under which Shares of the Fund may be halted. The
Exchange may halt trading in the Shares if trading is not occurring in
the securities and/or the financial instruments comprising the
Disclosed Portfolio of the Fund, or if other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present.\21\ Further, the Commission notes that the
Reporting Authority that provides the Disclosed Portfolio must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material, non-public information
regarding the actual components of the portfolio.\22\ The Exchange may
obtain information via the Intermarket Surveillance Group (``ISG'')
from other exchanges that are members or affiliates of ISG or with
which the Exchange has entered into a comprehensive surveillance
sharing agreement. The Exchange prohibits the distribution of material,
non-public information by its employees. The Exchange also states that
the Adviser and the Sub-Adviser are both affiliated with multiple
broker-dealers and have both implemented fire walls with respect to
such broker-dealer affiliates regarding access to information
concerning the composition and/or changes to the Fund's portfolio.\23\
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    \20\ See BATS Rule 14.11(i)(4)(A)(ii).
    \21\ See BATS Rule 14.11(i)(4)(B)(iii) (providing additional
considerations for the suspension of trading in or removal from
listing of Managed Fund Shares on the Exchange). With respect to
trading halts, the Exchange may consider other relevant factors in
exercising its discretion to halt or suspend trading in the Shares
of the Fund. Trading in Shares of the Fund will be halted if the
circuit breaker parameters in BATS Rule 11.18 have been reached.
Trading also may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the
Shares inadvisable.
    \22\ See BATS Rule 14.11(i)(4)(B)(ii)(b).
    \23\ See supra note 6. The Commission notes that an investment
adviser to an open-end fund is required to be registered under the
Investment Advisers Act of 1940 (``Advisers Act''). As a result, the
Adviser and the Sub-Adviser and their related personnel are subject
to the provisions of Rule 204A-1 under the Advisers Act relating to
codes of ethics. This Rule requires investment advisers to adopt a
code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
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    The Exchange represents that the Shares are deemed to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
In support of this proposal, the Exchange has made representations,
including:
    (1) The Shares will be subject to BATS Rule 14.11(i), which sets
forth the initial and continued listing criteria applicable to Managed
Fund Shares.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) The Exchange's surveillance procedures applicable to derivative
products, which include Managed Fund Shares, are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws.
    (4) Prior to the commencement of trading, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Circular will discuss the following: (a) The procedures for
purchases and redemptions of Shares in Creation Units (and that Shares
are not individually redeemable); (b) BATS Rule 3.7, which imposes
suitability obligations on Exchange members with respect to
recommending transactions in the Shares to customers; (c) how
information regarding the Intraday Indicative Value is disseminated;
(d) the risks involved in trading the Shares during the Pre-Opening and
After Hours Trading Sessions when an updated Intraday Indicative Value
will not be calculated or publicly disseminated; (e) a reminder that
there may be periods of time during Regular Trading Hours during which
the Intraday Indicative Value would be static to the extent securities
that comprise the Fund's holdings are not actively trading; (f) the
requirement that members deliver a prospectus to investors purchasing
newly issued Shares prior to or concurrently with the confirmation of a
transaction; and (g) trading information.
    (5) For initial and/or continued listing, the Fund must be in
compliance with Rule 10A-3 under the Exchange Act.\24\
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    \24\ 17 CFR 240.10A-3.
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    (6) Consistent with the Exemptive Order, the Fund will not invest
in options, swaps, or futures. The Fund's investments will be
consistent with its investment objective and will not be used to
enhance leverage. The Fund will not invest in equity securities.
    (7) Countries must have at least $5 billion of outstanding debt
principal amounts at the beginning of the calendar year in order to be
included as an eligible investment.
    (8) The Fund expects that, under normal circumstances, the
securities included in the Fund will be primarily investment grade. In
addition, the Fund will not invest in distressed debt.
    (9) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment),
including Rule 144A securities.
    (10) A minimum of 100,000 Shares of the Fund will be outstanding at
the commencement of trading on the Exchange.

This approval order is based on all of the Exchange's representations
and description of the Fund, including those set forth above and in the
Notice.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \25\ and the
rules and regulations thereunder applicable to a national securities
exchange.
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    \25\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\26\ that the proposed rule change (SR-BATS-2012-042) be, and it
hereby is, approved.
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    \26\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30165 Filed 12-13-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 68 (Wednesday, April 9, 2014)]
[Notices]
[Pages 19697-19699]
[FR Doc No: 2014-07889]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71859; File No. SR-CBOE-2014-029]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change To Enhance the
Exchange Audit Trail

April 3, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 27, 2014, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. 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 the
Substance of the Proposed Rule Change

    The Exchange proposes to enhance its audit trail by adding an
additional element to existing Rules 6.73 (Responsibility of Floor
Brokers) and 7.12 (PAR Official). The text of the proposed rule change
is provided below. (additions are italicized; deletions are
[bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *

Rule 6.73. Responsibilities of Floor Brokers

    (a)-(c) No changes.

. . . Interpretations and Policies:

    .01-.04 No changes.
    .05 Representation. Pursuant to Rule 6.73(a), a Floor Broker's
representation of an order shall require the Floor Broker to
electronically record the time the order is initially represented in
the trading crowd via Exchange-approved functionality.
* * * * *

Rule 7.12. PAR Official

    (a) No change.
    (b) The PAR Official shall be responsible for the following
obligations with respect to the classes of options assigned to him/her:
    (i)-(iv) No change.
    (v) A PAR Official shall electronically record the time an order is
initially represented by the PAR Official in the trading crowd.
* * * * *
    The text of the proposed rule change is also available on the
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, 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, the Exchange 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. The Exchange 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
    The Exchange is proposing to add a new interpretation and policy to
Rule 6.73 and new language to Rule 7.12(b). The proposed change will
require Floor Brokers and PAR Officials to electronically capture the
time in which orders are initially verbally presented in the Exchange's
trading crowd via a ``Represent Button'' which will be located on PAR
workstations and other Exchange-approved devices including, i.e. Floor
Broker Workstation (``FBW'') and PULSe.\3\ This will enhance the

Exchange's audit trail and surveillance of open out-cry trading.
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    \3\ The Exchange notes that there are currently other devices
utilized on the Exchange's trading floor, but these devices are not
utilized to represent orders in Exchange trading crowds and will not
be required to have this functionality.
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    Currently, Trading Permit Holders are permitted to use Exchange-
approved devices to systematize orders pursuant to Exchange Rule
6.24.\4\ However, the Exchange does not currently require an electronic
capture of the time when orders are represented in the trading crowd on
any of these devices.
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    \4\ Orders must be systematized in accordance with Rule 6.24
(Required Order Information). Generally, subject to certain
exceptions, each order, cancellation of, or change to an order
transmitted to the Exchange must be ``systematized,'' in a format
approved by the Exchange, either before it is sent to the Exchange
or upon receipt on the floor of the Exchange. An order is
systematized if: (i) The order is sent electronically to the
Exchange; or (ii) the order that is sent to the Exchange non-
electronically (e.g., telephone orders) is input electronically into
the Exchange's systems contemporaneously upon receipt on the
Exchange, and prior to representation of the order.
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    The proposed rule change will require the electronic capture of the
time an order is initially verbally represented in the trading crowd.
As proposed, this obligation will be fulfilled via an electronic
mechanism, a ``Represent Button,'' made available on Exchange-approved
devices, including, for example, Exchange-supplied PAR workstations,
FBWs and PULSe workstations.\5\ The Exchange believes this proposed
addition would help to track the time when an order is initially
represented in the trading crowd for open outcry trading.
---------------------------------------------------------------------------

    \5\ Any newly introduced floor based order management device
must have the ``Represent Button'' functionality before it is
approved to be used on the Exchange trading floor if it will be
utilized to represent orders.
---------------------------------------------------------------------------

    The procedure Floor Brokers and PAR Officials currently follow to
represent orders and consummate trades on the Exchange's trading floor
will not change aside from the added step of capturing the time an
order was initially represented in the trading crowd.
    The following is an example of how the proposed ``Represent
Button'' would operate:
     At 10:00:00, the National Best Bid and Offer (``NBBO'') is
1.10-1.20. A Floor Broker enters a trading crowd to represent an
already systematized order resident on a FBW to buy 200 contracts at
1.15. Concurrent with the representation in the crowd, the ``Represent
Button'' on that FBW must be pressed.
     At 10:00:10, while the NBBO remains 1.10-1.20, a Market-
Maker (``MM-A'') in the trading crowd verbally commits to trade against
the order for 200 contracts priced at 1.15. A trade has occurred.
     At 10:00:11, the NBBO updates to 1.05-1.10. At the same
time, while the NBBO is 1.05-1.10, the order is transmitted to a PAR
workstation for endorsement and processing.\6\
---------------------------------------------------------------------------

    \6\ Orders represented on FBW must be sent to a PAR workstation
for endorsement and processing because the post-execution process
cannot be completed on FBW. The Exchange notes that, at this time,
the PAR workstations are systematically configured to require the
usage of the ``Represent Button'' upon selection of the order.
---------------------------------------------------------------------------

     Finally, at 10:00:12, while the NBBO is still 1.05-1.10,
the Floor Broker completes the endorsement of the trade and reporting
process via PAR.
    With the addition of the proposed rule text, open out-cry trading
on the Exchange will generally continue to operate as it currently
does. The proposed rule text, however, merely adds another requirement
to capture the representation time electronically. With the creation of
the additional requirement, the Exchange is attempting to enhance its
audit trail for regulatory purposes.
    The Exchange will announce the implementation date of the proposed
rule change in a Regulatory Circular to be published no later than 30
days following the approval date. The Exchange represents that all
devices currently utilized to represent orders in the trading crowd by
Floor Brokers and PAR Officials will have this functionality by the
time of implementation of the obligation.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\7\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \8\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitation [sic] transactions in securities, 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. Additionally, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \9\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ Id.
---------------------------------------------------------------------------

    In particular, the proposed addition to Rules 6.73 and 7.12 would
promote just and equitable principles of trading by enhancing the
Exchange's audit trail. The proposed requirement applies to all
participants that handle agency orders in the trading crowd, and, as
such, we do not believe the requirement is unfairly discriminatory. In
addition, all Floor Brokers and PAR Officials will have the same
requirement to utilize the Represent Button, making the rule equitable
to similarly situated participants on the Exchange's trading floor.
These times will promote the Exchange's ability to develop and
implement surveillances that adequately cover the Exchange's Rules
including, but not limited to, due diligence requirements of Floor
Brokers \10\ and other Exchange priority rules. The proposed rule
change is attempting to protect investors and the public interest by
enhancing the audit trail used to monitor trading on the Exchange
trading floor.
---------------------------------------------------------------------------

    \10\ See Exchange Rule 6.73.
---------------------------------------------------------------------------

    The Exchange also believes the proposed rule change is consistent
with Section 6(b)(1) of the Act,\11\ which provides that the Exchange
be organized and have the capacity to be able to carry out the purposes
of the Act and to enforce compliance by the Exchange's Trading Permit
Holders and persons associated with its Trading Permit Holders with the
Act, the rules and regulations thereunder, and the rules of the
Exchange. In particular, the proposed additions will enhance the
Exchange's audit trail improving the regulation of the Exchange. With
an enhanced audit trail, the Exchange will be able to better monitor
trading activity on the Exchange.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------

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

    CBOE 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. In particular, the proposed
rule change will not impose any burden on any intramarket competition
as it will be applied to similarly situated groups trading on the
Exchange's trading floor equally. The Exchange does not believe the
proposed rule change will impose any burden on intermarket completion
as the proposed changes merely pose an electronic recording component
to the Exchange's open outcry representation

requirements on the trading floor to enhance the Exchange's audit
trail.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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 up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange 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-CBOE-2014-029 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2014-029. 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 20549-1090 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 offices of the
Exchange. 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-
CBOE-2014-029, and should be submitted on or before April 30, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2014-07889 Filed 4-8-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 125 (Wednesday, June 29, 2011)]
[Rules and Regulations]
[Pages 38013-38015]
[FR Doc No: 2011-16247]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2011-0528]
RIN 1625-AA00

Safety Zone; Big Sioux River From the Military Road Bridge North
Sioux City to the Confluence of the Missouri River, SD

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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

SUMMARY: The Coast Guard is establishing a temporary safety zone
restricting navigation on the Big Sioux River from the Military Road
Bridge in North Sioux City, South Dakota to the confluence of the
Missouri River and extending the entire width of the river. During
enforcement periods, vessels must obtain Captain of the Port
authorization to enter the safety zone. This temporary safety zone is
needed to protect the general public, vessels and tows, and the levee
system from destruction, loss or injury due to hazards associated with
rising flood water. Operation in this zone is restricted unless
specifically authorized by the Captain of the Port Sector Upper
Mississippi River or a designated representative.

DATES: Effective Date: this rule is effective in the CFR from June 29,
2011 until 11:59 p.m. CDT August 30, 2011, unless terminated earlier.
This rule is effective with actual notice for purposes of enforcement
beginning 12:01 am CDT June 7, 2011.

ADDRESSES: Documents indicated in this preamble as being available in
the docket are part of docket USCG-2011-0528 and are available online
by going to http://www.regulations.gov, inserting USCG-2011-0528 in the
``Keyword'' box, and then clicking ``Search.'' They are also available
for inspection or copying at the Docket Management Facility (M-30),
U.S. Department of Transportation, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
Documents will also be available for inspection or copying at Coast
Guard Sector Upper Mississippi River, 1222 Spruce Street Suite 7.103,
St. Louis, MO 63103 between 7:30 a.m. and 4 p.m., Monday through
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary rule, call or e-mail Lieutenant Commander (LCDR) Scott
Stoermer, Sector Upper Mississippi River, Coast Guard at<PHONE_NUMBER>
or<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Regulatory Information

    The Coast Guard is issuing this temporary final rule without prior
notice and opportunity to comment pursuant to authority under section
4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b) (B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because it would be contrary to public
interest to publish an NPRM as immediate action is necessary to protect
the public and property from the dangers associated with flooding
emergencies.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying its effective date would
be contrary to public interest because immediate action is needed to
protect vessels and mariners from the safety hazards associated with
flooding emergencies.

Basis and Purpose

    On June 7, 2011, the Captain of the Port Upper Mississippi River
deemed navigation on the Big Sioux River unsafe due to severe flooding
and has restricted navigation on the Big Sioux River, from the Military
Road Bridge in North Sioux City, SD at 42.52 degrees North, 096.48 West
longitude to the confluence of the Missouri River at 42.49 degrees
North, 096.45 degrees West longitude and extending the entire width of
the river. Entry into this zone is prohibited during enforcement
periods unless specifically authorized by the Captain of the Port
Sector Upper Mississippi River or a designated representative.
Emergency response boats or vessels may enter these waters

when responding to emergent situations on or near the river.

Discussion of Rule

    The Coast Guard is establishing a temporary safety zone for the Big
Sioux River from the Military Road Bridge in North Sioux City, SD at
42.52 degrees North, 096.48 West longitude to the confluence of the
Missouri River at 42.49 degrees North, 096.45 degrees West longitude
and extending the entire width of the river. During enforcement
periods, vessels and tows may not enter this zone unless authorized by
the Captain of the Port Sector Upper Mississippi River. Emergency
response boats or vessels may enter these waters when responding to
emergent situations on or near the river. This rule is effective from
12:01 am CDT June 7, 2011 until 11:59 pm CDT August 30, 2011, unless
terminated earlier. This safety zone will be enforced when high water
conditions pose a danger to navigation, the levee system, and the
general public. The Captain of the Port Sector Upper Mississippi River
will inform the public through broadcast notices to mariners and/or
marine safety information bulletins when enforcement periods are in
place and of all safety zone changes. When enforcement is implemented,
vessels currently in the safety zone will be provided opportunity to
safely exit the restricted area.

Regulatory Evaluation

    This rule is not a ``significant regulatory action'' under section
3(f) of Executive Order 12866, Regulatory Planning and Review, and does
not require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget has not
reviewed it under that Order. It is not ``significant'' under the
regulatory policies and procedures of the Department of Homeland
Security (DHS).
    Notifications to the marine community will be made through
broadcast notices to mariners and/or marine safety information
bulletins. Vessels requiring entry into or passage through the Safety
Zone may request permission from the Captain of the Port Sector Upper
Mississippi, or a designated representative and entry will be evaluated
on a case-by-case basis to minimize impact and protect the general
public, levee system, and vessels from destruction, loss or injury due
to the hazards associated with rising flood water. The impacts on
routine navigation are expected to be minimal.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will
not have a significant economic impact on a substantial number of small
entities. This rule will affect the following entities, some of which
may be small entities: the owners or operators of vessels intending to
transit waters of the Big Sioux River from the Military Road Bridge in
North Sioux City, SD at 42.52 degrees North, 096.48 West longitude to
the confluence of the Missouri River at 42.49 degrees North, 096.45
degrees West longitude and extending the entire width of the river on
and after 12:01 am CDT June 7, 2011. This Safety Zone is not expected
to have a significant economic impact on a substantial number of small
entities because vessels may request permission to transit the area
from the Captain of the Port Sector Upper Mississippi, or a designated
representative, for passage through the Safety Zone. Passage through
the safety zone will be evaluated on a case-by-case basis to minimize
impact and protect the general public, levee system, and vessels from
destruction, loss or injury due to the hazards associated with rising
flood water. If you are a small business entity and are significantly
affected by this regulation, please contact LCDR Scott Stoermer, Sector
Upper Mississippi River, Coast Guard at<PHONE_NUMBER>.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small
entities in understanding the rule so they could better evaluate its
effects on them and participate in the rulemaking process. Small
businesses may send comments on the actions of Federal employees who
enforce, or otherwise determine compliance with, Federal regulations to
the Small Business and Agriculture Regulatory Enforcement Ombudsman and
the Regional Small Business Regulatory Fairness Boards. The Ombudsman
evaluates these actions annually and rates each agency's responsiveness
to small businesses. If you wish to comment on actions by employees of
the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247).

Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this rule under
that Order and have determined that it does not have implications for
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more in any
one year. Though this rule will not result in such expenditure, we do
discuss the effects of this rule elsewhere in this preamble.

Taking of Private Property

    This rule will not affect a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the

Federal Government and Indian tribes, or on the distribution of power
and responsibilities between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that Order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies. This rule does not use technical standards.
Therefore, we did not consider the use of voluntary consensus
standards.

Environment

    We have analyzed this rule under Commandant Instruction M16475.lD,
which guides the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have concluded that there are no factors in this case that would limit
the use of a categorical exclusion under section 2.B.2 of the
Instruction. Therefore, this rule is categorically excluded, under
figure 2-1, paragraph (34)(g), of the Instruction, from further
environmental documentation because this rule is not expected to result
in any significant adverse environmental impact as described in the
National Environmental Policy Act of 1969 (NEPA).
    This rule involves an emergency situation and will be in effect for
over one week. An environmental analysis checklist and a categorical
exclusion determination will be provided and made available at the
docket as indicated in the ADDRESSES section.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701, 3306,
3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 6.04-1, 6.04-6, and
160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland
Security Delegation No. 0170.1.

0
2. A new temporary Sec.  165.T11-0511 is added to read as follows:

Sec.  165.T11-0511  Safety Zone; Big Sioux River from the Military Road
Bridge North Sioux City to the confluence of the Missouri River, SD

    (a) Location. The following area is a safety zone: All waters of
the Big Sioux River from the Military Road Bridge, North Sioux City, SD
at 42.52 degrees North, 096.48 West longitude to the confluence of the
Missouri River at 42.49 degrees North, 096.45 degrees West longitude
and extending the entire width of the river.
    (b) Effective date. June 7, 2011 through August 30, 2011, unless
terminated earlier.
    (c) Periods of Enforcement. This rule will be enforced during
dangerous flooding conditions occurring between 12:01 a.m. CDT June 7,
2011 and 11:59 p.m. CDT August 30, 2011. The Captain of the Port Sector
Upper Mississippi River will inform the public through broadcast notice
to mariners and/or marine safety information bulletins when enforcement
is implemented and of any changes to the safety zone. Vessels within
the safety zone will be allowed to safely exit the area upon
enforcement of this safety zone.
    (d) Regulations. (1) In accordance with the general regulations in
33 CFR part 165, subpart C, operation in this zone is restricted unless
authorized by the Captain of the Port Sector Upper Mississippi River or
a designated representative.
    (2) Vessels requiring entry into or passage through the Safety Zone
must request permission from the Captain of the Port Sector Upper
Mississippi River, or a designated representative. They may be
contacted on VHF Channel 13 or 16, or by telephone at<PHONE_NUMBER>.
    (3) All persons and vessels shall comply with the instructions of
the Captain of the Port Sector Upper Mississippi River or their
designated representative. Designated Captain of the Port
representatives includes United States Coast Guard commissioned,
warrant, and petty officers of the U.S. Coast Guard.

    Dated: June 6, 2011.
S.L. Hudson,
Captain, U.S. Coast Guard, Captain of the Port Sector Upper Mississippi
River.
[FR Doc. 2011-16247 Filed 6-28-11; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 77, Number 125 (Thursday, June 28, 2012)]
[Notices]
[Pages 38627-38628]
[FR Doc No: 2012-15864]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-RCRA-2011-0983; FRL-9518-7]

Agency Information Collection Activities; Submission to OMB for
Review and Approval; Comment Request; Criteria for Classification of
Solid Waste Disposal Facilities and Practices (Renewal)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: In compliance with the Paperwork Reduction Act (PRA)(44 U.S.C.
3501 et seq.), this document announces that an Information Collection
Request (ICR) has been forwarded to the Office of Management and Budget
(OMB) for review and approval. This is a request to renew an existing
approved collection. The ICR, which is abstracted below, describes the
nature of the information collection and its estimated burden and cost.

DATES: Additional comments may be submitted on or before July 30, 2012.

ADDRESSES: Submit your comments, referencing Docket ID No. EPA-HQ-RCRA-
2011-0983, to (1) EPA online using www.regulations.gov (our preferred
method), by email to<EMAIL_ADDRESS>or by mail to: RCRA Docket
(28221T), U.S. Environmental Protection Agency, 1200 Pennsylvania Ave.
NW., Washington, DC 20460, and (2) OMB by mail to: Office of
Information and Regulatory Affairs, Office of Management and Budget
(OMB), Attention: Desk Officer for EPA, 725 17th Street NW.,
Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Craig Dufficy, Office of Resource
Conservation and Recovery, (5304P), Environmental Protection Agency,
1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone number:
703-308-9037; fax number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: EPA has submitted the following ICR to OMB
for review and approval according to the procedures prescribed in 5 CFR
1320.12. On February 28, 2012 (77 FR 12048), EPA sought comments on
this ICR pursuant to 5 CFR 1320.8(d). EPA received no comments. Any
additional comments on this ICR should be submitted to EPA and OMB
within 30 days of this notice.
    EPA has established a public docket for this ICR under Docket ID
No. EPA-HQ-RCRA-2011-0983, which is available for online viewing at
www.regulations.gov, or in person viewing at the Resource Conservation
and Recovery Act (RCRA) Docket in the EPA Docket Center (EPA/DC), EPA
West, Room 3334, 1301 Constitution Ave. NW., Washington, DC. The EPA/DC
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Reading
Room is<PHONE_NUMBER>, and the telephone number for the RCRA Docket is
202-566-0270.
    Use EPA's electronic docket and comment system at
www.regulations.gov, to submit or view public comments, access the
index listing of the contents of the docket, and to access those
documents in the docket that are available electronically. Once in the
system, select ``docket search,'' then key in the docket ID number
identified above. Please note that EPA's policy is that public
comments, whether submitted electronically or in paper, will be made
available for public viewing at www.regulations.gov as EPA receives
them and without change, unless the comment contains copyrighted
material, confidential business information (CBI), or other information
whose public disclosure is restricted by statute. For further
information about the electronic docket, go to www.regulations.gov.
    Title: Criteria for Classification of Solid Waste Disposal
Facilities and Practices (Renewal)
    ICR numbers: EPA ICR No. 1745.07, OMB Control No. 2050-0154.
    ICR Status: This ICR is scheduled to expire on July 31, 2012. Under
OMB regulations, the Agency may continue to conduct or sponsor the
collection of information while this submission is pending at OMB. An
Agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information, unless it displays a currently
valid OMB control number. The OMB control numbers for EPA's regulations
in title 40 of the CFR, after appearing in the Federal Register when
approved, are listed in 40 CFR part 9, are displayed either by
publication in the Federal Register or by other appropriate means, such
as on the related collection instrument or form, if applicable. The
display of OMB control numbers in certain EPA regulations is
consolidated in 40 CFR part 9.
    Abstract: In order to effectively implement and enforce final
changes to 40 CFR part 257--Subpart B on a State level, owners/
operators of construction and demolition waste landfills that receive
Conditionally Exempt Small Quantity Generator (CESQG) hazardous wastes
will have to comply with the final reporting and recordkeeping
requirements. The information collected is used by the States to
regulate and ensure that non-municipal non-hazardous waste disposal
units that receive CESQG hazardous wastes, and CESQGs, are complying
with the final revisions to the part 257, subpart B criteria and the
revisions to part 261. This program is implemented by approved States
and all information will be reported to the States or kept in an
operating record; in unapproved States, the ``Criteria for
Classification of Solid Waste Disposal Facilities and Practices'' (40
CFR part 257) are self implementing, meaning that the owner/operator
documents compliance with the Criteria and places the documentation in
the operating record. Once established as a non-municipal non-hazardous
waste disposal unit, ground-water monitoring is to be conducted
throughout the active life of the unit plus 30 years. The only units
that will incur burdens under the part 257, subpart B rule continue to
be construction and demolition landfills that receive CESQG waste from
off-site generators. EPA has reviewed Biocycle trade magazine and has
concluded that the number of Construction and Demolition (C&D)
landfills has stopped the decline and has remained at the current level
of 134. The number of respondents is therefore 134 C&D waste landfills
plus 18 States, for a total of 152 respondents.
    The Agency assumes 14 new and lateral expansion of existing units
will be activated per year accepting CESQG waste subject to Part 257,
Subpart B rule. EPA has estimated a one-time recordkeeping requirement
for the Floodplains location restriction of 10 hours per unit. There is
a one-time reporting burden of two hours per unit. Owners and operators
of non-municipal non-hazardous waste disposal units that may receive
CESQG wastes may demonstrate (document) that there is no potential for
migration of hazardous constituents from the unit. The demonstration is
to be based on site-specific data and fate and transport modeling. EPA
estimates that no more than 1 owner/operator out of the 14 new
facilities will attempt this demonstration. EPA assumes that the
required documentation would result in a one-time reporting requirement
of 100 hours per unit. One-time burden hours are incurred under this
provision for 3 of the 14 new small/arid/remote facilities that are
eligible to use alternative ground-water monitoring and choose to
upgrade. The Agency assumes that 3 of the total 14 new units will be
located in small/arid/remote locations. There is a one-time

recordkeeping burden of 10 hours per unit and a one-time reporting
burden of two hours per unit. EPA estimates 14 new or lateral
expansions of existing construction and demolition landfills will
choose to upgrade and will not be eligible to use alternative ground-
water monitoring techniques. The Agency assumes the one-time reporting
requirement of 20 hours per unit would result for these 14 new or
lateral expansions of existing units. EPA estimates the total annual
reporting burden for detection monitoring to be 32 hours per year for
the 134 existing units and the 14 new or lateral expansions of existing
units per year. The annual recordkeeping requirement burden is two
hours for each unit. For assessment monitoring, EPA estimates that this
rule would impose an annual reporting burden of 32 hours per occurrence
per year. For corrective action, EPA estimated an annual reporting
burden of 200 hours per year to document progress in clean-up
activities. There are annual recordkeeping burdens at Sec. Sec.
257.27(b), 257.28(c)(4) and 257.28(e)(2). Each of these annual
recordkeeping burdens requires two hours per unit, for a total of six
hours. EPA estimates that the recordkeeping requirement at Sec.  257.30
to place notifications in the operating record will impose a one-time
recordkeeping burden of 10 hours on 1 new or lateral expansion of an
existing unit per year.
    Burden Statement: The annual public reporting and recordkeeping
burden for this collection of information is estimated to average 74
hours per response. Burden means the total time, effort, or financial
resources expended by persons to generate, maintain, retain, or
disclose or provide information to or for a Federal agency. This
includes the time needed to review instructions; develop, acquire,
install, and utilize technology and systems for the purposes of
collecting, validating, and verifying information, processing and
maintaining information, and disclosing and providing information;
adjust the existing ways to comply with any previously applicable
instructions and requirements which have subsequently changed; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information.
    Respondents/Affected Entities: Private Solid Waste Disposal
Facilities, States.
    Estimated Number of Respondents: 152.
    Frequency of Response: On occasion.
    Estimated Total Annual Hour Burden: 11,220.
    Estimated Total Annual Cost: $2,097,810, which includes $520,151 in
annualized labor and $1,577,659 in annualized capital or O&M costs.
    Changes in the Estimates: There is a change of 1 hour in the total
estimated burden currently identified in the OMB Inventory of Approved
ICR Burdens. This is due to a constant number of Construction &
Demolition landfills and an adjustment due to rounding numbers.

John Moses,
Director, Collection Strategies Division.
[FR Doc. 2012-15864 Filed 6-27-12; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 86, Number 170 (Tuesday, September 7, 2021)]
[Rules and Regulations]
[Pages 49917-49918]
[FR Doc No: 2021-19053]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2021-0424; Airspace Docket No. 21-ACE-13]
RIN 2120-AA66

Amendment of Class E Airspace; Malden, MO

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends Class E airspace extending upward from 700
feet above the surface at Malden Regional Airport, (formerly Malden
Municipal Airport), Malden, MO. The FAA is taking this action as a
result of an airspace review caused by the decommissioning of the
Malden Very High Frequency Omni-Directional Range (VOR) co-located with
Tactical Air Navigation (TACAN) which equates to a (VORTAC) navigation
aid as part of the VOR Minimum Operational Network (MON) Program.
Controlled airspace is necessary for the safety and management of
instrument flight rules (IFR) in the area.

DATES: Effective 0901 UTC, December 2, 2021. The Director of the
Federal Register approves this incorporation by reference action under
1 CFR part 51, subject to the annual revision of FAA Order 7400.11 and
publication of conforming amendments.

ADDRESSES: FAA Order 7400.11E, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can
contact the Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; Telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11E at NARA, email
<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, 1701
Columbia Ave., College Park, GA 30337; Telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. 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. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it amends the Class E airspace extending upward from 700 feet above
the surface in Malden, MO, to support IFR operations in the area.

History

    The FAA published a notice of proposed rulemaking in the Federal
Register (86 FR 33920, June 28, 2021) for Docket No. FAA-2021-0424 to
amend Class E airspace extending upward from 700 feet above the surface
at Malden Regional Airport, Malden, MO, due to the decommissioning of
the Malden VORTAC.
    Interested parties were invited to participate in this rulemaking
effort by submitting written comments on the proposal to the FAA. No
comments were received.
    Class E airspace designations are published in Paragraph 6005, of
FAA Order 7400.11E, dated July 21, 2020, and effective September 15,
2020, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designations listed in this document will be published
subsequently in the Order.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.11E, Airspace Designations and
Reporting Points, dated July 21, 2020, and effective September 15,
2020. FAA Order 7400.11E is publicly available as listed in the
ADDRESSES section of this document. FAA Order 7400.11E lists Class A,
B, C, D, and E airspace areas, air traffic routes, and reporting
points.

The Rule

    The FAA is amending 14 CFR part 71 by amending the Class E airspace
extending upward from 700 feet above the surface for Malden Regional
Airport, Malden, MO, as the Malden VORTAC has been decommissioned and
all associated airspace extensions of Class E airspace extending upward
from 700

feet above the surface, off the Malden VORTAC have been eliminated. The
Class E airspace extending upward from 700 feet above the surface is
amended by increasing the radius to 7.3 miles (previously 6.7 miles).
Also the airport's name (formerly Malden Municipal Airport) and
geographic coordinates are updated to coincide with the FAA's data
base.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current. It
therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is minimal. Since this is a routine matter that only
affects air traffic procedures an air navigation, it is certified that
this rule, when promulgated, does not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures,'' paragraph 5-6.5a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

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

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

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

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

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11E,
Airspace Designations and Reporting Points, dated July 21, 2020, and
effective September 15, 2020, is amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

ACE MO E5 Malden, MO [Amended]

Malden Regional Airport, MO
    (Lat. 36[deg]35'54'' N, long. 89[deg]59'33'' W)

    That airspace extending upward from 700 feet above the surface
within a 7.3-mile radius of the Malden Regional Airport.

    Issued in College Park, Georgia, on August 31, 2021.
Andreese C. Davis,
Manager, Airspace & Procedures Team South, Eastern Service Center, Air
Traffic Organization.
[FR Doc. 2021-19053 Filed 9-3-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 88, Number 16 (Wednesday, January 25, 2023)]
[Notices]
[Pages 4878-4880]
[FR Doc No: 2023-01405]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. FAA-2022-1711]

Agency Information Collection Activities: Requests for Comments;
Clearance of Renewed Approval of Information Collection: Carbon
Offsetting and Reduction Scheme for International Aviation (CORSIA)
Monitoring, Reporting, and Verification (MRV) Program

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice and request for comments.

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

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FAA
invites public comments about our intention to request Office of
Management and Budget (OMB) approval to renew an information
collection. The collection involves a request that airplane operators
subject to the applicability of Annex 16, Volume IV of the Convention
on Civil Aviation (hereinafter the ``Chicago Convention'') submit
electronically an Emissions Monitoring Plan (EMP), an annual Emissions
Report (ER) to the FAA. Airplane operators may also submit an optional
ER CORSIA Eligible Fuels Annex (CEFA) to the FAA if they want to
receive credit for their use of CORSIA Eligible Sustainable Aviation
Fuel (SAF) or Lower Carbon Aviation Fuel (LCAF). The information to be
collected is necessary because FAA will use the information to fulfill
the United States' responsibilities under the Chicago Convention

DATES: Written comments should be submitted by March 27, 2023.

ADDRESSES: Please send written comments:
    By Electronic Docket: www.regulations.gov (Enter docket number into
search field).
    By mail: Kevin Partowazam, Federal Aviation Administration, AEE-5,
800 Independence Ave. SW, Washington, DC 20591.

FOR FURTHER INFORMATION CONTACT: Kevin Partowazam by email at:
[email protected]; phone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including (a) Whether the proposed
collection of information is necessary for FAA's performance; (b) the
accuracy of the estimated burden; (c) ways for FAA to enhance the
quality, utility and clarity of the information collection; and (d)
ways that the burden could be minimized without reducing the quality of
the collected information. The agency will summarize and/or include
your comments in the request for OMB's clearance of this information
collection.
    OMB Control Number: 2120-0790.
    Title: CORSIA Monitoring, Reporting, and Verification (MRV)
Program.
    Form Numbers: 1. Emissions Monitoring Plan (EMP) Template; 2.
Emissions Report (ER) Template; 3. ER CORSIA Eligible Fuels Annex
(CEFA).
    Type of Review: Clearance of a renewal of an information
collection.
    Background: The CORSIA MRV Program is a voluntary program for
certain U.S. air carriers and commercial operators (collectively
referred hereinafter as ``operators'') to submit certain airplane
CO2 emissions data to the FAA to enable the United States to
establish uniformity with ICAO Standards And Recommended Practices
(SARPs) for CORSIA, which were adopted in June 2018, as Annex 16,
Volume IV to the Chicago Convention. The United States supported the
decision to adopt the CORSIA SARPs based on the understanding that
CORSIA is the exclusive market-based measure applying to international
aviation, and that CORSIA will ensure fair and reciprocal commercial
competition by avoiding a patchwork of country- or regionally-based
regulatory measures that are inconsistently applied, bureaucratically
costly, and economically damaging. Furthermore, continued U.S. support
for CORSIA assumes a high level of participation by other countries,
particularly by countries with significant aviation activity, as well
as a final CORSIA package that is acceptable to, and implementable by,
the United States.
    Under CORSIA, all ICAO Member States whose airplane operators
undertake international flights will have needed to develop an MRV
system for CO2 emissions from those international flights
starting January 1, 2019. The FAA's CORSIA MRV Program is intended to
be the United States' MRV system for monitoring, reporting, and
verification of U.S. airplane operator CO2 emissions from
international flights.
    Operators that are subject to the applicability of CORSIA will
submit their EMPs, ERs, and ER CEFAs electronically.\1\
---------------------------------------------------------------------------

    \1\ CORSIA applies to airplane operators that produce annual
CO2 emissions greater than 10,000 tonnes (i.e., 10,000
metric tons) from international flights, excluding emissions from
excluded flights. The following activities are excluded CORSIA:
    --Domestic flights;
    --Humanitarian, medical, and firefighting operations, including
flight(s) preceding or following a humanitarian, medical, or
firefighting flight provided such flight(s) were conducted with the
same airplane, were required to accomplish the related humanitarian,
medical, or firefighting activities or to reposition thereafter the
airplane for its next activity;
    --Operations using an airplane with a maximum certificated take-
off mass equal to or less than 5,700 kg;
    --Operations on behalf of the military.
---------------------------------------------------------------------------

    Each document uses Microsoft Excel-based templates and can be
transmitted via email or uploaded to a web portal. EMPs that are
submitted by operators will be used as a collaborative tool between the
operator and FAA to document a given operator's chosen fuel use
monitoring procedures. FAA will retain a copy of the EMP and will share
with ICAO a list of operators that submit EMPs. FAA will not submit any
specific EMPs from U.S. operators to ICAO. Large operators, i.e., those
emitting 500,000 metric tons or more of CO2 per year, will
gather data through a ``fuel use monitoring method.'' Small operators,
i.e., those emitting less than 500,000 metric tons of CO2
per year, can use a simplified monitoring method. Annual ERs and
optional ER CEFAs that are submitted to FAA by operators and verifiers
will be used to document each operators' international emissions. FAA
will use the ERs and ER CEFAs to calculate aggregated emissions data
for all U.S. operators. FAA will submit the aggregated emissions data
to ICAO to demonstrate U.S. implementation of CORSIA.
    Respondents: Respondents will be airplane operators subject to the
applicability of Annex 16, Volume IV of the Chicago Convention. Since
the CORSIA MRV Program was originally launched, FAA received 30 EMPs
from participating operators, along with an annual ER from each. Some
additional operators could submit an EMP and ER over time based on
their international aviation activities.
    Frequency: An EMP is a one-time submission. An ER, and optional ER
CEFA, is an annual submission.
    Estimated Average Burden per Response: FAA expects that filling and
submitting an EMP could take an average of approximately 28.6 hours per
operator. FAA expects that for operators using a Fuel Use Monitoring
Method, the reporting hour burden could be approximately 47.5 hours per
operator, per year. For operators using a simplified Monitoring Method,
the reporting hour burden could be approximately 16 hours per operator,
per year.
    Estimated Total Annual Burden: Based on the above, FAA expects that
the average annual submission of an ER could take approximately 49.4
hours per operator, per year. For operators using a Fuel Use Monitoring
Method, this includes 60 hours per operator, per year for filling and
reporting an ER and an additional potential 8 hours for filling and
reporting the ER CEFA. For operators using simplified Monitoring
Methods, this includes 17.5 hours per operator, per year for filling
and reporting an ER and an additional potential 4 hours for filling and
reporting the ER CEFA.

    Issued in Washington, DC, on January 19, 2023.
Kevin Welsh,
Executive Director, Office of Environment and Energy.
[FR Doc. 2023-01405 Filed 1-24-23; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 87, Number 85 (Tuesday, May 3, 2022)]
[Rules and Regulations]
[Pages 26123-26124]
[FR Doc No: 2022-09425]

========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.

========================================================================

Federal Register / Vol. 87, No. 85 / Tuesday, May 3, 2022 / Rules and
Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 27

[Docket No. FAA-2021-0943; Special Conditions No. 27-057-SC]

Special Conditions: Robinson Helicopter Company Model R66
Helicopter; Pressure Refueling Provisions

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions.

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

SUMMARY: These special conditions are issued for the Robinson
Helicopter Company (RHC) Model R66 helicopter. This helicopter will
have a novel or unusual design feature when compared to the state of
technology envisioned in the airworthiness standards for normal
category helicopters. This design feature is a pressure refueling
system. The applicable airworthiness regulations do not contain
adequate or appropriate safety standards for this design feature. These
special conditions contain the additional safety standards that the
Administrator considers necessary to establish a level of safety
equivalent to that established by the existing airworthiness standards.

DATES: Effective June 2, 2022.

FOR FURTHER INFORMATION CONTACT: Monica Abboud, Propulsion Section,
AIR-794, Los Angeles ACO Branch, Aircraft Certification Service,
Federal Aviation Administration, 3960 Paramount Boulevard, Lakewood,
California 90712; telephone<PHONE_NUMBER>; email
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    On July 15, 2021, RHC applied for a change to Type Certificate No.
R00015LA for the Model R66 helicopter. This change incorporates a
pressure fueling system in the Model R66 helicopter. The RHC Model R66
helicopter, which is a derivative of the earlier models of the Model
R66 helicopter currently approved under Type Certificate No. R00015LA,
is a part 27 normal category helicopter. It is a single turbine engine
helicopter with a four-passenger maximum passenger capacity and has a
maximum gross weight, with no external load, of up to 2,700 pounds
depending on the model configuration.

Type Certification Basis

    Under the provisions of 14 CFR 21.101, RHC must show that the Model
R66 helicopter, as changed, continues to meet the applicable provisions
of the regulations listed in Type Certificate No. R00015LA or the
applicable regulations in effect on the date of application for the
change, except for earlier amendments as agreed upon by the FAA.
    If the Administrator finds that the applicable airworthiness
regulations (e.g., 14 CFR part 27) do not contain adequate or
appropriate safety standards for the RHC Model R66 helicopter because
of a novel or unusual design feature, special conditions are prescribed
under the provisions of Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same novel or
unusual design feature, or should any other model already included on
the same type certificate be modified to incorporate the same novel or
unusual design feature, these special conditions would also apply to
the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the RHC Model R66 helicopter must comply with the noise
certification requirements of 14 CFR part 36.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of the type
certification basis under Sec.  21.101.

Novel or Unusual Design Feature

    The RHC Model R66 helicopter will incorporate the following novel
or unusual design feature:
    A pressure refueling system, which will allow for optional pressure
fueling.

Discussion

    RHC will modify the Model R66 helicopter by incorporating a
pressure refueling system that allows for optional pressure fueling
from a fueling port on the right side of the fuselage and the existing
gravity system via the fuel filler cap on top of the main fuel tank.
This modification provides faster, easier, and safer refueling when the
engines are running and rotors turning compared to the existing fueling
system located on the top of the main fuel tank. The pressure refueling
system includes a crash-resistant fuel hose that runs from the fueling
port on the right side to an inlet at the top of the fuel tank on the
helicopter's left side. The system does not accommodate defueling.
    Part 27 does not contain requirements for pressure refueling for
normal category helicopters. However, 14 CFR 29.979, amendment 29-12,
effective February 1, 1977, provides these requirements for transport
category helicopters. Accordingly, these special conditions are based
on Sec.  29.979 to provide requirements for the inclusion of the
optional pressure refueling system on the Model R66 helicopters.
Section CFR 29.979 includes standards for pressure refueling and
fueling provisions below fuel level on transport category rotorcraft.
    Section 29.979(a) is intended to prevent hazards to ground crew,
flight crew, and occupants by reducing the probability of exposure to
hazardous quantities of fuel resulting from spillage and ensuring the
pressure refueling/defueling system is designed to prevent overfilling
the fuel tank and to withstand an ultimate load overpressure event
without failure.
    Section 29.979(a) requires each fueling connection below the fuel
level in each tank to have a means to prevent the escape of hazardous
quantities of fuel from that tank in case of malfunction of the fuel
entry valve.
    Section 29.979(b) requires systems intended for pressure refueling
to have a means in addition to the normal means for limiting the tank
content to prevent damage to the tank in case of failure of the normal
means.
    Section 29.979(c) requires the rotorcraft pressure fueling system
(not fuel tanks and fuel tank vents) to withstand an ultimate load that
is 2.0 times the load arising from the maximum pressure, including
surge,

that is likely to occur during fueling. The maximum surge pressure must
be established with any combination of tank valves being either
intentionally or inadvertently closed.
    Section 29.979(d) requires the rotorcraft defueling system (not
including fuel tanks and fuel tank vents) to withstand an ultimate load
that is 2.0 times the load arising from the maximum permissible
defueling pressure (positive or negative) at the rotorcraft fueling
connection. The design by RHC does not include defueling capability.
    These special conditions contain the additional safety standards
that the Administrator considers necessary to establish a level of
safety equivalent to that established by the existing airworthiness
standards.

Discussion of Comments

    The FAA issued Notice of Proposed Special Conditions No. 27-21-01-
SC for the RHS Model R66 helicopter, which published in the Federal
Register on February 4, 2022 (87 FR 6437). The FAA received two
comments from individuals in support of these special conditions.

Applicability

    As discussed above, these special conditions are applicable to the
RHC Model R66 helicopter. Should RHC apply at a later date for a change
to the type certificate to include another model incorporating the same
novel or unusual design feature, these special conditions would apply
to that model as well.

Conclusion

    This action affects only a certain novel or unusual design feature
on one model of helicopter. It is not a rule of general applicability.

List of Subjects in 14 CFR Part 27

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

Authority Citation

    The authority citation for these special conditions is as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701, 44702, 44704.

The Special Conditions

    [ssquf] Accordingly, pursuant to the authority delegated to me by
the Administrator, the following special conditions are issued as part
of the type certification basis for Robinson Helicopter Company Model
R66 helicopters.
    The pressure refueling system must be designed and installed as
follows:
    (a) Each fueling connection below the fuel level in each tank must
have the means to prevent the escape of hazardous quantities of fuel
from that tank in case of malfunction of the fuel entry valve.
    (b) For systems intended for pressure refueling, a means in
addition to the normal means for limiting the tank content must be
installed to prevent damage to the fuel tank in case of failure of the
normal means.
    (c) The rotorcraft pressure fueling system (not fuel tanks and fuel
tank vents) must withstand an ultimate load that is 2.0 times the load
arising from maximum pressure, including a surge, that is likely to
occur during fueling. The maximum surge pressure must be established
with any combination of tank valves being either intentionally or
inadvertently closed.

    Issued in Kansas City, Missouri, on April 27, 2022.
Patrick R. Mullen,
Manager, Technical Innovation Policy Branch, Policy and Innovation
Division, Aircraft Certification Service.
[FR Doc. 2022-09425 Filed 5-2-22; 8:45 am]
BILLING CODE 4910-13-P