Executive Order 13175 of November 6, 2000 Consultation and Coordination With Indian Tribal Governments By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to establish regular and meaningful consultation and collaboration with tribal officials in the development of Federal policies that have tribal implications, to strengthen the United States government to government relationships with Indian tribes, and to reduce the imposition of unfunded mandates upon Indian tribes; it is hereby ordered as follows:

Section 1. Definitions. For purposes of this order: ( a) `` Policies that have tribal implications'' refers to regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects 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.

( b) `` Indian tribe'' means an Indian or Alaska Native tribe, band, nation, pueblo, village, or community that the Secretary of the Interior acknowledges to exist as an Indian tribe pursuant to the Federally Recognized Indian Tribe List Act of 1994, 25 U. S. C. 479a.

( c) `` Agency'' means any authority of the United States that is an `` agency'' under 44 U. S. C. 3502( 1), other than those considered to be independent regulatory agencies, as defined in 44 U. S. C. 3502( 5).

( d) `` Tribal officials'' means elected or duly appointed officials of Indian tribal governments or authorized intertribal organizations.

Sec. 2. Fundamental Principles. In formulating or implementing policies that have tribal implications, agencies shall be guided by the following fundamental principles:

( a) The United States has a unique legal relationship with Indian tribal governments as set forth in the Constitution of the United States, treaties, statutes, Executive Orders, and court decisions. Since the formation of the Union, the United States has recognized Indian tribes as domestic dependent nations under its protection. The Federal Government has enacted numerous statutes and promulgated numerous regulations that establish and define a trust relationship with Indian tribes.

( b) Our Nation, under the law of the United States, in accordance with treaties, statutes, Executive Orders, and judicial decisions, has recognized the right of Indian tribes to self government. As domestic dependent nations, Indian tribes exercise inherent sovereign powers over their members and territory. The United States continues to work with Indian tribes on a government to government basis to address issues concerning Indian tribal self government, tribal trust resources, and Indian tribal treaty and other rights.

( c) The United States recognizes the right of Indian tribes to self government and supports tribal sovereignty and self determination.

Sec. 3. Policymaking Criteria. In addition to adhering to the fundamental principles set forth in section 2, agencies shall adhere, to the extent permitted by law, to the following criteria when formulating and implementing policies that have tribal implications:

( a) Agencies shall respect Indian tribal self government and sovereignty, honor tribal treaty and other rights, and strive to meet the responsibilities that arise from the unique legal relationship between the Federal Government and Indian tribal governments.

( b) With respect to Federal statutes and regulations administered by Indian tribal governments, the Federal Government shall grant Indian tribal governments the maximum administrative discretion possible.

( c) When undertaking to formulate and implement policies that have tribal implications, agencies shall:

( 1) encourage Indian tribes to develop their own policies to achieve program objectives;

( 2) where possible, defer to Indian tribes to establish standards; and ( 3) in determining whether to establish Federal standards, consult with tribal officials as to the need for Federal standards and any alternatives that would limit the scope of Federal standards or otherwise preserve the prerogatives and authority of Indian tribes.

Sec. 4. Special Requirements for Legislative Proposals. Agencies shall not submit to the Congress legislation that would be inconsistent with the policymaking criteria in Section 3.

Sec. 5. Consultation.

( a) Each agency shall have an accountable process to ensure meaningful and timely input by tribal officials in the development of regulatory policies that have tribal implications. Within 30 days after the effective date of this order, the head of each agency shall designate an official with principal responsibility for the agency's implementation of this order. Within 60 days of the effective date of this order, the designated official shall submit to the Office of Management and Budget ( OMB) a description of the agency's consultation process.

( b) To the extent practicable and permitted by law, no agency shall promulgate any regulation that has tribal implications, that imposes substantial direct compliance costs on Indian tribal governments, and that is not required by statute, unless:

( 1) funds necessary to pay the direct costs incurred by the Indian tribal government or the tribe in complying with the regulation are provided by the Federal Government; or ( 2) the agency, prior to the formal promulgation of the regulation,

( A) consulted with tribal officials early in the process of developing the proposed regulation;

( B) in a separately identified portion of the preamble to the regulation as it is to be issued in the Federal Register, provides to the Director of OMB a tribal summary impact statement, which consists of a description of the extent of the agency's prior consultation with tribal officials, a summary of the nature of their concerns and the agency's position supporting the need to issue the regulation, and a statement of the extent to which the concerns of tribal officials have been met; and ( C) makes available to the Director of OMB any written communications submitted to the agency by tribal officials.

( c) To the extent practicable and permitted by law, no agency shall promulgate any regulation that has tribal implications and that preempts tribal law unless the agency, prior to the formal promulgation of the regulation,

( 1) consulted with tribal officials early in the process of developing the proposed regulation;

( 2) in a separately identified portion of the preamble to the regulation as it is to be issued in the Federal Register, provides to the Director of OMB a tribal summary impact statement, which consists of a description of the extent of the agency's prior consultation with tribal officials, a summary of the nature of their concerns and the agency's position supporting the need to issue the regulation, and a statement of the extent to which the concerns of tribal officials have been met; and ( 3) makes available to the Director of OMB any written communications submitted to the agency by tribal officials.

( d) On issues relating to tribal self government, tribal trust resources, or Indian tribal treaty and other rights, each agency should explore and, where appropriate, use consensual mechanisms for developing regulations, including negotiated rulemaking.

Sec. 6. Increasing Flexibility for Indian Tribal Waivers.

( a) Agencies shall review the processes under which Indian tribes apply for waivers of statutory and regulatory requirements and take appropriate steps to streamline those processes.

( b) Each agency shall, to the extent practicable and permitted by law, consider any application by an Indian tribe for a waiver of statutory or regulatory requirements in connection with any program administered by the agency with a general view toward increasing opportunities for utilizing flexible policy approaches at the Indian tribal level in cases in which the proposed waiver is consistent with the applicable Federal policy objectives and is otherwise appropriate.

( c) Each agency shall, to the extent practicable and permitted by law, render a decision upon a complete application for a waiver within 120 days of receipt of such application by the agency, or as otherwise provided by law or regulation. If the application for waiver is not granted, the agency shall provide the applicant with timely written notice of the decision and the reasons therefor.

( d) This section applies only to statutory or regulatory requirements that are discretionary and subject to waiver by the agency.

Sec. 7. Accountability.

( a) In transmitting any draft final regulation that has tribal implications to OMB pursuant to Executive Order 12866 of September 30, 1993, each agency shall include a certification from the official designated to ensure compliance with this order stating that the requirements of this order have been met in a meaningful and timely manner.

( b) In transmitting proposed legislation that has tribal implications to OMB, each agency shall include a certification from the official designated to ensure compliance with this order that all relevant requirements of this order have been met.

( c) Within 180 days after the effective date of this order the Director of OMB and the Assistant to the President for Intergovernmental Affairs shall confer with tribal officials to ensure that this order is being properly and effectively implemented.

Sec. 8. Independent Agencies. Independent regulatory agencies are encouraged to comply with the provisions of this order.

Sec. 9. General Provisions.

( a) This order shall supplement but not supersede the requirements contained in Executive Order 12866 ( Regulatory Planning and Review), Executive Order 12988 ( Civil Justice Reform), OMB Circular A   19, and the Executive Memorandum of April 29, 1994, on Governmentto Government Relations with Native American Tribal Governments.

( b) This order shall complement the consultation and waiver provisions in sections 6 and 7 of Executive Order 13132 ( Federalism).

( c) Executive Order 13084 ( Consultation and Coordination with Indian Tribal Governments) is revoked at the time this order takes effect.

( d) This order shall be effective 60 days after the date of this order.

Sec. 10. Judicial Review. This order is intended only to improve the internal management of the executive branch, and is not intended to create any right, benefit, or trust responsibility, substantive or procedural, enforceable at law by a party against the United States, its agencies, or any person.

William Jefferson Clinton THE WHITE HOUSE, November 6, 2000. [ FR Doc. 0029003]

1. ###


[Federal Register: February 25, 2008 (Volume 73, Number 37)]
[Notices]
[Page 10088]
[DOCID:fr25fe08-137]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

Availability of Commercial Driver's License Information System
(CDLIS) Modernization Grant Funds

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice.

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SUMMARY: The Federal Motor Carrier Safety Administration (FMCSA)
announces the availability of Commercial Driver's License Information
System (CDLIS) modernization grant funding as authorized by Section
4123 of the Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU). This law included an
appropriation of $28 million (FY 2006-2009) towards modernization of
CDLIS. The FY 2006 and FY 2007 funding of $5 million and $7 million was
awarded to the American Association of Motor Vehicle Administrators for
development costs. The FY 2008 funding of $8 million being made
available in this notice will be awarded to the States. The program is
a discretionary grant program that provides funding for States to
upgrade their driver licensing information systems to make them
compatible with the new modernized CDLIS specifications. The grant
funds under this program may be used for personnel, computer hardware
and software, publications, testing, training, and quality control. The
grant funds may not be used to rent, lease, or buy land or buildings.
The agency in each State designated as the primary driver licensing
agency responsible for the development, implementation, and maintenance
of the Commercial Driver's License (CDL) program is eligible to apply
for grant funding. The Federal share of the funds is established by
SAFETEA-LU as 80 percent. There is a 20 percent matching requirement.
The grant period for any grant awarded under this program is effective
from the date the agreement is executed until September 30, 2010. Funds
are available to any State that is in substantial compliance with the
requirements of 49 U.S.C. 31311 and submits a grant proposal that
qualifies under the conditions in this notice, including assuming the
responsibility of incorporating the new CDLIS specifications and
improving its commercial driver licensing system. State grant proposals
must include a detailed budget explaining how the funds will be used
and how the State will meet the matching requirements.
    To apply for funding, applicants must register with the grants.gov
Web site (http://www.grants.gov/applicants/get_registered.jsp) and
submit an application in accordance with instructions provided.
Applications for grant funding must be submitted electronically to the
FMCSA through the grants.gov web site.

DATES: FMCSA will initially consider funding for applications submitted
by April 30, 2008, by qualified applicants. If additional funding
remains available, applications submitted after April 30, 2008, will be
considered on a case-by-case basis. The grant period is in effect from
the date the agreement is executed until September 30, 2010.

FOR FURTHER INFORMATION CONTACT: Visit www.grants.gov. Information on
the grant, application process, and additional contact information is
available at that Web site. General information about the CDLIS
modernization grant program is available in The Catalog of Federal
Domestic Assistance (CFDA) which can be found on the internet at http:/
/www.cfda.gov. The CFDA number for the CDLIS modernization grant
program is 20.238. You may also contact Ms. Margaret Jones, Federal
Motor Carrier Safety Administration, Office of Safety Programs, CDL
Division (MC-ESL),<PHONE_NUMBER>, 1200 New Jersey Avenue, SE., Suite
W65-228, Washington, DC 20590. Office hours are from 8 a.m. to 4:30
p.m., ET, Monday through Friday, except Federal holidays.

    Issued on: February 15, 2008.
William A. Quade,
Associate Administrator for Enforcement and Program Delivery.
 [FR Doc. E8-3413 Filed 2-22-08; 8:45 am]

BILLING CODE 4910-EX-P


[Federal Register: February 7, 2008 (Volume 73, Number 26)]
[Notices]
[Page 7328-7334]
[DOCID:fr07fe08-99]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28140; 812-13386]

PowerShares Capital Management LLC, et al.; Notice of Application

February 1, 2008.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 6(c) of the
Investment Company Act of 1940 (``Act'') for an exemption from sections
2(a)(32), 5(a)(1) and 22(d) of the Act and rule 22c-1 under the Act,
and under sections 6(c) and 17(b) of the Act for an exemption from
sections 17(a)(1) and (a)(2) of the Act, and under section 12(d)(1)(J)
for an exemption from sections 12(d)(1)(A) and (B) of the Act.

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    Applicants: PowerShares Capital Management LLC (the ``Advisor''),
AER Advisors, Inc. (``AER''), AIM Distributors, Inc. (the
``Distributor''), and PowerShares Actively Managed Exchange-Traded Fund
Trust (the ``Trust'').

    Summary of Application: Applicants request an order that permits:
(a) Series of certain open-end management investment companies to issue
shares (``Shares'') redeemable in large aggregations only (``Creation
Units''); (b) secondary market transactions in Shares to occur at
negotiated market prices; (c) certain affiliated persons of the series
to deposit securities into, and receive securities from, the series in
connection with the purchase and redemption of Creation Units; and (d)
certain registered management investment companies and unit investment
trusts outside of the same group of investment companies as the series
to acquire Shares.
    Filing Dates: The application was filed on May 18, 2007, and
amended on November 9, 2007, November 16, 2007, November 30, 2007,
December 20, 2007 and January 7, 2008.
    Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on February 26, 2008, and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-1090. Applicants: Advisor and Trust,
301 West Roosevelt Road, Wheaton, IL 60187; Distributor, 11 Greenway
Plaza, Houston, TX 77046-1173; AER, 30 Laurence Lane, Rye Beach, NH
03871.

FOR FURTHER INFORMATION CONTACT: Marilyn Mann, Branch Chief, or Michael
W. Mundt, Assistant Director, at<PHONE_NUMBER> (Division of Investment
Management, Office of Investment Company Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
Commission's Public Reference Desk, 100 F Street, NE., Washington, DC
20549-0102 (tel.<PHONE_NUMBER>).

Applicants' Representations

    1. The Trust is an open-end management investment company
registered under the Act and organized as a Delaware business trust.
The Trust will offer two initial series subadvised by AER: The
PowerShares Active AlphaQ Portfolio and the PowerShares Active Alpha
Multi-Cap Portfolio (the ``Initial AER Funds''). The Trust will also
offer two initial series subadvised by Invesco Institutional (N.A.),
Inc. (``Invesco''): The PowerShares Active Mega-Cap Portfolio (``Mega-
Cap Fund'') and PowerShares Active Low Duration Portfolio (``Low
Duration Fund,'' and together with the Mega-Cap Fund, the ``Initial
Invesco Funds''). The Initial AER Funds and Initial Invesco Funds are
collectively referred to as the ``Initial Funds.'' Each Initial AER
Fund's investment objective will be to provide long-term capital
appreciation by investing in stocks selected according to a
quantitative screening methodology developed by AER. The Mega-Cap
Fund's investment objective will be to provide long-term growth of
capital by investing primarily in the equity securities of mega-
capitalization companies according to a quantitative approach developed
by Invesco. The Low Duration Fund's investment objective is to provide
total return by investing primarily in U.S. government and corporate
debt securities.
    2. The Advisor plans to introduce future series of the Trust or of
other open-end management investment companies that will invest in
equity or fixed income securities traded in the U.S. markets (``Future
Funds''). Applicants request that the order apply to any such Future
Funds. Any Future Fund will be (a) advised by the Advisor or an entity
controlling, controlled by, or under common control with the Advisor,
and (b) comply with the terms and conditions of the order. The Initial
Funds and Future Funds together are the ``Funds.'' Funds that invest in
equity securities are ``Equity Funds'' and Funds that invest in fixed
income securities are ``Fixed Income Funds.'' Each Fund will operate as
an actively-managed exchange-traded fund (``ETF'').
    3. The Advisor, a Delaware limited liability company, is registered
as an investment adviser under the Investment Advisers Act of 1940
(``Advisers Act'') and serves as investment adviser to each Fund. The
Advisor has retained AER as subadvisor to the Initial AER Funds and
Invesco as subadviser to the Initial Invesco Funds, and may in the
future retain other subadvisers (together with AER and Invesco, the
``Fund Subadvisors'') to manage the portfolios of other Funds. AER, a
New Hampshire corporation, and Invesco, a Delaware corporation, are
registered under the Advisers Act, and any other Fund Subadvisor will
be registered under the Advisers Act. The Distributor, a Delaware
corporation, is registered as a broker-dealer under the Securities
Exchange Act of 1934 (``Exchange Act'') and serves as the principal
underwriter and distributor for the Funds. Each of the Advisor, Invesco
and the Distributor is an indirect wholly-owned subsidiary of Invesco
PLC, a public limited company organized in the United Kingdom.\1\
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    \1\ All entities that currently intend to rely on the order are
named as applicants. Any other entity that relies on the order in
the future will comply with the terms and conditions of the
application. An Investing Fund (as defined below) may rely on the
order only to invest in Funds and not in any other registered
investment company.
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    4. Shares of the Funds will be sold at a price of between $50 and
$60 per Share in Creation Units of between 50,000 and 100,000 Shares.
All orders to purchase Creation Units must be placed with the
Distributor by or through a party that has entered into an agreement
with the Trust and the Distributor (``Authorized Participant''). An
Authorized Participant must be either: (a) A broker-dealer or other
participant in the continuous net settlement system of the National
Securities Clearing Corporation (``NSCC''), a clearing agency
registered with the Commission, or (b) a participant in the Depository
Trust Company (``DTC,'' and such participant, ``DTC Participant'').
Shares of each Fund generally will be sold in Creation Units in
exchange for an in-kind deposit by the purchaser of a portfolio of
securities designated by the Advisor (the ``Deposit Securities''),
together with the deposit of a relatively small specified cash payment
(``Cash Component''). The Cash Component is an amount equal to the
difference between (a) the net asset value (``NAV'') per Creation Unit
of the Fund and (b) the total aggregate market value per Creation Unit
of the Deposit Securities.\2\ Applicants state that in some
circumstances it may not be practicable or convenient for a Fund to
operate exclusively on an ``in-kind'' basis. The Trust reserves the
right to permit, under certain circumstances, a purchaser of

Creation Units to substitute cash in lieu of depositing some or all of
the requisite Deposit Securities.
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    \2\ In addition to the list of names and amount of each security
constituting the current Deposit Securities, it is intended that, on
each day that a Fund is open, including as required by section 22(e)
of the Act (``Business Day''), the Cash Component effective as of
the previous Business Day, per outstanding Share of each Fund, will
be made available. The Stock Exchange intends to disseminate, every
15 seconds, during regular trading hours, through the facilities of
the Consolidated Tape Association, an approximate amount per Share
representing the sum of the estimated Cash Component effective
through and including the previous Business Day, plus the current
value of the Deposit Securities, on a per Share basis.
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    5. An investor purchasing a Creation Unit from a Fund will be
charged a fee (``Transaction Fee'') to prevent the dilution of the
interests of the remaining shareholders resulting from costs in
connection with the purchase of Creation Units.\3\ The maximum
Transaction Fees relevant to each Fund will be fully disclosed in the
prospectus (``Prospectus'') or statement of additional information
(``SAI'') of such Fund. All orders to purchase Creation Units will be
placed with the Distributor by or through an Authorized Participant and
it will be the Distributor's responsibility to transmit such orders to
the Trust. The Distributor also will be responsible for delivering the
Prospectus to those persons purchasing Creation Units, and for
maintaining records of both the orders placed with it and the
confirmations of acceptance furnished by it. In addition, the
Distributor will maintain a record of the instructions given to the
Trust to implement the delivery of Shares.
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    \3\ Where a Fund permits a purchaser to substitute cash in lieu
of depositing a portion of the requisite Deposit Securities, the
purchaser may be assessed a higher Transaction Fee to cover the cost
of purchasing such Deposit Securities, including brokerage costs,
and part or all of the spread between the expected bid and the offer
side of the market relating to such Deposit Securities.
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    6. Purchasers of Shares in Creation Units may hold such Shares or
may sell such Shares into the secondary market. Shares will be listed
and traded on a national securities exchange as defined in section
2(a)(26) of the Act (``Stock Exchange''). It is expected that one or
more member firms of a listing Stock Exchange will be designated to act
as a specialist and maintain a market for Shares on the Stock Exchange
(the ``Specialist''), or if Nasdaq is the listing Stock Exchange, one
or more member firms of Nasdaq will act as a market maker (``Market
Maker'') and maintain a market for Shares.\4\ Prices of Shares trading
on a Stock Exchange will be based on the current bid/offer market.
Shares sold in the secondary market will be subject to customary
brokerage commissions and charges.
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    \4\ If Shares are listed on the Nasdaq, no particular Market
Maker will be contractually obligated to make a market in Shares,
although Nasdaq's listing requirements stipulate that at least two
Market Makers must be registered as Market Makers in Shares to
maintain the listing. Registered Market Makers are required to make
a continuous, two-sided market at all times or be subject to
regulatory sanctions.
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    7. Applicants expect that purchasers of Creation Units will include
institutional investors and arbitrageurs (which could include
institutional investors). The Specialist, or Market Maker, in providing
a fair and orderly secondary market for the Shares, also may purchase
Creation Units for use in its market-making activities. Applicants
expect that secondary market purchasers of Shares will include both
institutional investors and retail investors.\5\ Applicants expect that
the price at which the Shares trade will be disciplined by arbitrage
opportunities created by the ability to continually purchase or redeem
Creation Units at their NAV, which should ensure that the Shares will
not trade at a material discount or premium in relation to their NAV.
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    \5\ Shares will be registered in book-entry form only. DTC or
its nominee will be the registered owner of all outstanding Shares.
DTC or DTC Participants will maintain records reflecting beneficial
owners of Shares.
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    8. Shares will not be individually redeemable, and owners of Shares
may acquire those Shares from a Fund, or tender such Shares for
redemption to the Fund, in Creation Units only. To redeem, an investor
will have to accumulate enough Shares to constitute a Creation Unit.
Redemption orders must be placed by or through an Authorized
Participant. An investor redeeming a Creation Unit generally will
receive (a) a portfolio of securities designated to be delivered for
Creation Unit redemptions on the date that the request for redemption
is submitted (``Fund Securities''), which may not be identical to the
Deposit Securities required to purchase Creation Units on that date,
and (b) a ``Cash Redemption Payment,'' consisting of an amount
calculated in the same manner as the Cash Component, although the
actual amount of the Cash Redemption Payment may differ from the Cash
Component if the Fund Securities are not identical to the Deposit
Securities on that day. An investor may receive the cash equivalent of
a Fund Security in certain circumstances, such as if the investor is
constrained from effecting transactions in the security by regulation
or policy. A redeeming investor may pay a Transaction Fee, calculated
in the same manner as a Transaction Fee payable in connection with
purchases of Creation Units.
    9. Neither the Trust nor any individual Fund will be marketed or
otherwise held out as an ``open-end investment company'' or a ``mutual
fund.'' Instead, each Fund will be marketed as an ``actively-managed
exchange-traded fund.'' All marketing materials that describe the
method of obtaining, buying or selling Shares, or refer to
redeemability, will prominently disclose that Shares are not
individually redeemable and that the owners of Shares may purchase or
redeem Shares from a Fund in Creation Units only. The same approach
will be followed in the SAI, shareholder reports and investor
educational materials issued or circulated in connection with the
Shares. The Funds will provide copies of their annual and semi-annual
shareholder reports to DTC Participants for distribution to beneficial
owners of Shares.
    10. The Funds' Web site, which will be publicly available prior to
the public offering of Shares, will include the Prospectus and other
information about the Funds that is updated on a daily basis, including
the mid-point of the bid-ask spread at the time of the calculation of
NAV (``Bid/Ask Price''). On each Business Day, before the commencement
of trading in Shares on the Stock Exchange, each Fund will disclose the
identities and quantities of the securities (``Portfolio Securities'')
and other assets held in the Fund portfolio that will form the basis
for the Fund's calculation of NAV at the end of the Business Day.\6\
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    \6\ Applicants note that under accounting procedures followed by
the Funds, trades made on the prior Business Day (``T'') will be
booked and reflected in NAV on the current Business Day (``T + 1'').
Accordingly, the Funds will be able to disclose at the beginning of
the Business Day the portfolio that will form the basis for the NAV
calculation at the end of the Business Day.
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Applicants' Legal Analysis

    1. Applicants request an order under section 6(c) of the Act
granting an exemption from sections 2(a)(32), 5(a)(1) and 22(d) of the
Act and rule 22c-1 under the Act; and under sections 6(c) and 17(b) of
the Act granting an exemption from sections 17(a)(1) and (a)(2) of the
Act, and under section 12(d)(1)(J) for an exemption from sections
12(d)(1)(A) and (B) of the Act.
    2. Section 6(c) of the Act provides that the Commission may exempt
any person, security or transaction, or any class of persons,
securities or transactions, from any provision of the Act, if and to
the extent that such exemption is necessary or appropriate in the
public interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act.
Section 17(b) of the Act authorizes the Commission to exempt a proposed
transaction from section 17(a) of the Act if evidence establishes that
the terms of the transaction, including the consideration to be paid or
received, are reasonable and fair and do not involve overreaching on
the part of any person concerned, and the proposed

transaction is consistent with the policies of the registered
investment company and the general provisions of the Act. Section
12(d)(1)(J) of the Act provides that the Commission may exempt any
person, security, or transaction, or any class or classes of persons,
securities or transactions, from any provision of section 12(d)(1) if
the exemption is consistent with the public interest and the protection
of investors.

Sections 5(a)(1) and 2(a)(32) of the Act

    3. Section 5(a)(1) of the Act defines an ``open-end company'' as a
management investment company that is offering for sale or has
outstanding any redeemable security of which it is the issuer. Section
2(a)(32) of the Act defines a redeemable security as any security,
other than short-term paper, under the terms of which the holder, upon
its presentation to the issuer, is entitled to receive approximately
his proportionate share of the issuer's current net assets, or the cash
equivalent. Because Shares will not be individually redeemable,
applicants request an order that would permit each Fund, as a series of
an open-end management investment company, to issue Shares that are
redeemable in Creation Units only. Applicants state that investors may
purchase Shares in Creation Units from each Fund and redeem Creation
Units from each Fund. Applicants further state that because the market
price of Shares will be disciplined by arbitrage opportunities,
investors should be able to sell Shares in the secondary market at
prices that do not vary substantially from their NAV.

Section 22(d) of the Act and Rule 22c-1 under the Act

    4. Section 22(d) of the Act, among other things, prohibits a dealer
from selling a redeemable security, which is currently being offered to
the public by or through a principal underwriter, except at a current
public offering price described in the prospectus. Rule 22c-1 under the
Act generally requires that a dealer selling, redeeming, or
repurchasing a redeemable security do so only at a price based on its
NAV. Applicants state that secondary market trading in Shares will take
place at negotiated prices, not at a current offering price described
in the prospectus, and not at a price based on NAV. Thus, purchases and
sales of Shares in the secondary market will not comply with section
22(d) of the Act and rule 22c-1 under the Act. Applicants request an
exemption under section 6(c) from these provisions.
    5. Applicants assert that the concerns sought to be addressed by
section 22(d) of the Act and rule 22c-1 under the Act with respect to
pricing are equally satisfied by the proposed method of pricing Shares.
Applicants maintain that while there is little legislative history
regarding section 22(d), its provisions, as well as those of rule 22c-
1, appear to have been designed to (a) prevent dilution caused by
certain riskless-trading schemes by principal underwriters and contract
dealers, (b) prevent unjust discrimination or preferential treatment
among buyers resulting from sales at different prices, and (c) assure
an orderly distribution of investment company shares by eliminating
price competition from dealers offering shares at less than the
published sales price and repurchasing shares at more than the
published redemption price.
    6. Applicants believe that none of these purposes will be thwarted
by permitting Shares to trade in the secondary market at negotiated
prices. Applicants state that (a) secondary market trading in Shares
does not involve the Funds as parties and cannot result in dilution of
an investment in Shares, and (b) to the extent different prices exist
during a given trading day, or from day to day, such variances occur as
a result of third-party market forces, such as supply and demand.
Therefore, applicants assert that secondary market transactions in
Shares will not lead to discrimination or preferential treatment among
purchasers. Finally, applicants contend that the proposed distribution
system will be orderly because arbitrage activity will ensure that the
difference between the market price of Shares and their NAV remains
narrow.

Section 12(d)(1)

    7. Section 12(d)(1)(A) of the Act prohibits a registered investment
company from acquiring shares of an investment company if the
securities represent more than 3% of the total outstanding voting stock
of the acquired company, more than 5% of the total assets of the
acquiring company, or, together with the securities of any other
investment companies, more than 10% of the total assets of the
acquiring company. Section 12(d)(1)(B) of the Act prohibits a
registered open-end investment company, its principal underwriter, or
any other broker or dealer from selling its shares to another
investment company if the sale will cause the acquiring company to own
more than 3% of the acquired company's voting stock, or if the sale
will cause more than 10% of the acquired company's voting stock to be
owned by investment companies generally.
    8. Applicants request that the order permit certain investment
companies registered under the Act to acquire Shares beyond the
limitations in section 12(d)(1)(A) and permit the Funds, any principal
underwriter for the Funds, and any broker or dealer registered under
the Exchange Act (``Brokers''), to sell Shares beyond the limitations
in section 12(d)(1)(B). Applicants request that these exemptions apply
to: (1) Any Fund that is currently or subsequently part of the same
``group of investment companies'' as the Initial Funds within the
meaning of section 12(d)(1)(G)(ii) of the Act as well as any principal
underwriter for the Funds and any Brokers selling Shares of a Fund to
an Investing Fund (as defined below); and (2) each management
investment company or unit investment trust registered under the Act
that is not part of the same ``group of investment companies'' as the
Funds within the meaning of section 12(d)(1)(G)(ii) of the Act and that
enters into a FOF Participation Agreement (as defined below) with a
Fund (such management investment companies are referred to herein as
``Investing Management Companies,'' such unit investment trusts are
referred to herein as ``Investing Trusts,'' and Investing Management
Companies and Investing Trusts are ``Investing Funds''). Investing
Funds do not include the Funds. Each Investing Trust will have a
sponsor (``Sponsor'') and each Investing Management Company will have
an investment adviser within the meaning of section 2(a)(20)(A) of the
Act (``Investing Fund Advisor'') that does not control, is not
controlled by or under common control with the Advisor. Each Investing
Management Company may also have one or more investment advisers within
the meaning of section 2(a)(20)(B) of the Act (each, a ``Subadvisor'').
    9. Applicants assert that the proposed transactions will not lead
to any of the abuses that section 12(d)(1) was designed to prevent.
Applicants submit that the proposed conditions to the requested relief
address the concerns underlying the limits in section 12(d)(1), which
include concerns about undue influence, excessive layering of fees and
overly complex structures.
    10. Applicants believe that neither the Investing Funds nor an
Investing Fund Affiliate would be able to exert undue influence over
the Funds.\7\ To limit the

control that an Investing Fund may have over a Fund, applicants propose
a condition prohibiting the Investing Fund Advisor or Sponsor; any
person controlling, controlled by, or under common with the Investing
Fund Advisor or Sponsor; and any investment company or issuer that
would be an investment company but for sections 3(c)(1) or 3(c)(7) of
the Act that is advised or sponsored by the Investing Fund Advisor or
advised or sponsored by the Sponsor, or any person controlling,
controlled by, or under common control with the Investing Fund Advisor
or Sponsor (``Investing Fund's Advisory Group'') from controlling
(individually or in the aggregate) a Fund within the meaning of section
2(a)(9) of the Act. The same prohibition would apply to any Subadvisor;
any person controlling, controlled by, or under common control with the
Subadvisor; and any investment company or issuer that would be an
investment company but for section 3(c)(1) or 3(c)(7) of the Act (or
portion of such investment company or issuer) advised or sponsored by
the Subadvisor or any person controlling, controlled by, or under
common control with the Subadvisor (``Investing Fund's Subadvisory
Group'').
---------------------------------------------------------------------------

    \7\ An ``Investing Fund Affiliate'' is an Investing Fund
Advisor, Subadvisor, Sponsor, promoter, and principal underwriter of
an Investing Fund, and any person controlling, controlled by, or
under common control with any of those entities.
---------------------------------------------------------------------------

    11. Applicants propose other conditions to limit the potential for
undue influence over the Funds, including that no Investing Fund or
Investing Fund Affiliate (except to the extent it is acting in its
capacity as an investment adviser to a Fund) will cause a Fund to
purchase a security in any offering of securities during the existence
of any underwriting or selling syndicate of which a principal
underwriter is an Underwriting Affiliate (``Affiliated Underwriting'').
An ``Underwriting Affiliate'' is a principal underwriter in any
underwriting or selling syndicate that is an officer, director, member
of an advisory board, Investing Fund Advisor, Subadvisor, employee or
Sponsor of an Investing Fund, or a person of which any such officer,
director, member of an advisory board, Investing Fund Advisor,
Subadvisor, employee, or Sponsor is an affiliated person (except any
person whose relationship to the Fund is covered by section 10(f) of
the Act is not an Underwriting Affiliate).
    12. Applicants do not believe that the proposed arrangement will
involve excessive layering of fees. The board of directors or trustees
of each Investing Management Company, including a majority of the
disinterested directors or trustees, before approving any advisory
contract under section 15 of the Act, will be required to determine
that the advisory fees charged to the Investing Management Company are
based on services provided that will be in addition to, rather than
duplicative of, the services provided under the advisory contract(s) of
any Fund in which the Investing Management Company may invest. In
addition, the Investing Fund Advisor, trustee of an Investing Trust
(``Trustee'') or Sponsor, as applicable, will waive fees otherwise
payable to it by the Investing Fund in an amount at least equal to any
compensation received from a Fund by the Investing Fund Advisor,
Trustee or Sponsor, or an affiliated person of the Investing Fund
Advisor, Trustee or Sponsor (other than any advisory fees), in
connection with the investment by the Investing Fund in the Funds.
Applicants also state that any sales charges and/or service fees
charged with respect to shares of an Investing Fund will not exceed the
limits applicable to a fund of funds set forth in Conduct Rule 2830 of
the NASD (``Rule 2830'').
    13. Applicants submit that the proposed arrangement will not create
an overly complex fund structure. Applicants note that a Fund will be
prohibited from acquiring securities of any investment company, or of
any company relying on section 3(c)(1) or 3(c)(7) of the Act, in excess
of the limits contained in section 12(d)(1)(A) of the Act.
    14. To ensure that Investing Funds are aware of the terms and
conditions of the requested order, the Investing Funds must enter into
an agreement with the respective Funds (``FOF Participation
Agreement''). The FOF Participation Agreement will include an
acknowledgement from the Investing Fund that it may rely on the order
only to invest in the Funds and not in any other investment company.
The FOF Participation Agreement will further require any Investing Fund
that exceeds the 5% or 10% limitations in section 12(d)(1)(A)(ii) and
(iii) to disclose in its Prospectus that it may invest in ETFs and
disclose, in ``plain English,'' in its Prospectus the unique
characteristics of the Investing Funds investing in investment
companies, including but not limited to the expense structure and any
additional expenses of investing in investment companies.

Sections 17(a)(1) and (2) of the Act

    15. Section 17(a)(1) and (2) of the Act generally prohibit an
affiliated person of a registered investment company, or an affiliated
person of such a person (``second tier affiliate''), from selling any
security to or purchasing any security from the company. Section
2(a)(3) of the Act defines ``affiliated person'' to include any person
directly or indirectly owning, controlling, or holding with power to
vote 5% or more of the outstanding voting securities of the other
person and any person directly or indirectly controlling, controlled
by, or under common control with, the other person. Section 2(a)(9) of
the Act provides that a control relationship will be presumed where one
person owns more than 25% of another person's voting securities. The
Funds may be deemed to be controlled by the Advisor or an entity
controlling, controlled by or under common control with the Adviser and
hence affiliated persons of each other. In addition, the Funds may be
deemed to be under common control with any other registered investment
company (or series thereof) advised by the Advisor or an entity
controlling, controlled by or under common control with the Advisor (an
``Affiliated Fund''). Applicants state that because the definition of
``affiliated person'' includes any person owning 5% or more of an
issuer's outstanding voting securities, every purchaser of a Creation
Unit will be affiliated with the Fund so long as fewer than twenty
Creation Units are in existence, and any purchaser that owns more than
25% of a Fund's outstanding Shares will be affiliated with a Fund.
    16. Applicants request an exemption from section 17(a) under
sections 6(c) and 17(b), to permit in-kind purchases and redemptions by
persons that are affiliated persons or second tier affiliates of the
Funds solely by virtue of one or more of the following: (1) Holding 5%
or more, or more than 25%, of the outstanding Shares of the Trust or
one or more Funds; (2) an affiliation with a person with an ownership
interest described in (1); or (3) holding 5% or more, or more than 25%,
of the shares of one or more Affiliated Funds. Applicants also request
an exemption in order to permit each Fund to sell Shares to and redeem
Shares from, and engage in the in-kind transactions that would
accompany such sales and redemptions with, any Investing Fund of which
it is an affiliated person or second tier affiliate because of one or
more of the following: (1) The Investing Fund holds 5% or more of the
Shares of the Trust or one or more Funds; (2) an Investing Fund
described in (1) is an affiliated person of the Investing Fund; or (3)
the Investing Fund holds 5% or more of the shares of one or more
Affiliated Funds.\8\
---------------------------------------------------------------------------

    \8\ Although applicants believe that most Investing Funds will
purchase and sell Shares in the secondary market, an Investing Fund
might seek to transact in Shares directly with a Fund. With respect
to these in-kind transactions, applicants are requesting relief for
Funds that are affiliated persons or second tier affiliates of an
Investing Fund solely by virtue of one or more of the reasons
described above.

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

    17. Applicants contend that no useful purpose would be served by
prohibiting affiliated persons or second tier affiliates of a Fund from
purchasing or redeeming Creation Units through ``in-kind''
transactions. The deposit procedure for in-kind purchases and the
redemption procedure for in-kind redemptions will be the same for all
purchases and redemptions. Deposit Securities and Fund Securities will
be valued under the same objective standards applied to valuing
Portfolio Securities. Therefore, applicants state that in-kind
purchases and redemptions will afford no opportunity for the affiliated
persons and second tier affiliates described above to effect a
transaction detrimental to the other holders of Shares. Applicants also
believe that in-kind purchases and redemptions will not result in
abusive self-dealing or overreaching by these persons of the Fund.
    18. Applicants also submit that the sale of Shares to and
redemption of Shares from an Investing Fund satisfies the standards for
relief under sections 17(b) and 6(c) of the Act. Applicants note that
the consideration paid for the purchase or received for the redemption
of Shares directly from a Fund by an Investing Fund (or any other
investor) will be based on the NAV of the Shares. In addition, the
securities received or transferred by the Fund in connection with the
purchase or redemption of Shares will be valued in the same manner as
the Fund's Portfolio Securities and thus the transactions will not be
detrimental to the Investing Fund. Applicants also state that the
proposed transactions will be consistent with the policies of each
Investing Fund and Fund and with the general purposes of the Act.
Applicants state that the FOF Participation Agreement will require an
Investing Fund to represent that its ownership of Shares issued by a
Fund is consistent with the investment policies set forth in the
Investing Fund's registration statement.

Applicants' Conditions

    The applicants agree that any order of the Commission granting the
requested relief will be subject to the following conditions:

A. Actively-Managed Exchange-Traded Fund Relief

    1. Each Prospectus will clearly disclose that, for purposes of the
Act, Shares are issued by a registered investment company and that the
acquisition of Shares by investment companies and companies relying on
sections 3(c)(1) or 3(c)(7) of the Act is subject to the restrictions
of section 12(d)(1) of the Act, except as permitted by an exemptive
order that permits registered investment companies to invest in a Fund
beyond the limits in section 12(d)(1), subject to certain terms and
conditions, including that the registered investment company enter into
a FOF Participation Agreement with the Fund regarding the terms of the
investment.
    2. As long as the Funds operate in reliance on the requested order,
the Shares of the Funds will be listed on a Stock Exchange.
    3. Neither the Trust nor any Fund will be advertised or marketed as
an open-end investment company or a mutual fund. Each Fund's Prospectus
will prominently disclose that the Fund is an actively managed
exchange-traded fund. Each Prospectus will prominently disclose that
the Shares are not individually redeemable shares and will disclose
that the owners of the Shares may acquire those Shares from the Fund
and tender those Shares for redemption to the Fund in Creation Units
only. Any advertising material that describes the purchase or sale of
Creation Units or refers to redeemability will prominently disclose
that the Shares are not individually redeemable and that owners of the
Shares may acquire those Shares from the Fund and tender those Shares
for redemption to the Fund in Creation Units only.
    4. The website for the Funds, which is and will be publicly
accessible at no charge, will contain the following information, on a
per Share basis, for each Fund: (a) the prior Business Day's NAV and
the Bid/Ask Price, and a calculation of the premium or discount of the
Bid/Ask Price against such NAV; and (b) data in chart format displaying
the frequency distribution of discounts and premiums of the daily Bid/
Ask Price against the NAV, within appropriate ranges, for each of the
four previous calendar quarters (or for the life of the Fund, if
shorter).
    5. The Prospectus and annual report for each Fund will also
include: (a) the information listed in condition A.4(b), (i) in the
case of the Prospectus, for the most recently completed year (and the
most recently completed quarter or quarters, as applicable) and (ii) in
the case of the annual report, for the immediately preceding five years
(or for the life of the Fund, if shorter), and (b) calculated on a per
Share basis for one-, five- and ten-year periods (or for the life of
the Fund, if shorter), the cumulative total return and the average
annual total return based on NAV and Bid/Ask Price.
    6. On each Business Day, before commencement of trading in Shares
on the Stock Exchange, the Fund will disclose on its website the
identities and quantities of the Portfolio Securities and other assets
held by the Fund that will form the basis for the Fund's calculation of
NAV at the end of the Business Day.
    7. The Advisor or Fund Subadvisor, directly or indirectly, will not
cause any Authorized Participant (or any investor on whose behalf an
Authorized Participant may transact with the Fund) to acquire any
Deposit Security for the Fund through a transaction in which the Fund
could not engage directly.
    8. The requested order will expire on the effective date of any
Commission rule under the Act that provides relief permitting the
operation of actively managed exchange-traded funds.

B. Section 12(d)(1) Relief

    1. The members of the Investing Fund's Advisory Group will not
control (individually or in the aggregate) a Fund within the meaning of
section 2(a)(9) of the 1940 Act. The members of the Investing Fund's
Subadvisory Group will not control (individually or in the aggregate) a
Fund within the meaning of section 2(a)(9) of the 1940 Act. If, as a
result of a decrease in the outstanding voting securities of a Fund,
the Investing Fund's Advisory Group or the Investing Fund's Subadvisory
Group, each in the aggregate, becomes a holder of more than 25 percent
of the outstanding voting securities of a Fund, it will vote its Shares
of the Fund in the same proportion as the vote of all other holders of
the Fund's Shares. This condition does not apply to the Investing
Fund's Subadvisory Group with respect to a Fund for which the
Subadvisor or a person controlling, controlled by or under common
control with the Subadvisor acts as the investment adviser within the
meaning of section 2(a)(20)(A) of the Act.
    2. No Investing Fund or Investing Fund Affiliate will cause any
existing or potential investment by the Investing Fund in a Fund to
influence the terms of any services or transactions between the
Investing Fund or an Investing Fund Affiliate and the Fund or a Fund
Affiliate.
    3. The board of directors or trustees of an Investing Management
Company, including a majority of the disinterested directors or
trustees, will adopt procedures reasonably designed to assure that the
Investing Fund Advisor and any Subadvisor are conducting the investment
program of the Investing Management Company without taking

into account any consideration received by the Investing Management
Company or an Investing Fund Affiliate from a Fund or a Fund Affiliate
in connection with any services or transactions.
    4. Once an investment by an Investing Fund in the securities of a
Fund exceeds the limit in section l2(d)(1)(A)(i) of the Act, the board
of trustees (``Board'') of a Fund, including a majority of the
disinterested Board members, will determine that any consideration paid
by the Fund to the Investing Fund or an Investing Fund Affiliate in
connection with any services or transactions: (i) Is fair and
reasonable in relation to the nature and quality of the services and
benefits received by the Fund; (ii) is within the range of
consideration that the Fund would be required to pay to another
unaffiliated entity in connection with the same services or
transactions; and (iii) does not involve overreaching on the part of
any person concerned. This condition does not apply with respect to any
services or transactions between a Fund and its investment adviser(s),
or any person controlling, controlled by or under common control with
such investment adviser(s).
    5. The Investing Fund Advisor, or Trustee or Sponsor, as
applicable, will waive fees otherwise payable to it by the Investing
Fund in an amount at least equal to any compensation (including fees
received pursuant to any plan adopted by a Fund under rule 12b-l under
the Act) received from a Fund by the Investing Fund Advisor, or Trustee
or Sponsor, or an affiliated person of the Investing Fund Advisor, or
Trustee or Sponsor, other than any advisory fees paid to the Investing
Fund Advisor, or Trustee or Sponsor, or its affiliated person by the
Fund, in connection with the investment by the Investing Fund in the
Fund. Any Subadvisor will waive fees otherwise payable to the
Subadvisor, directly or indirectly, by the Investing Management Company
in an amount at least equal to any compensation received from a Fund by
the Subadvisor, or an affiliated person of the Subadvisor, other than
any advisory fees paid to the Subadvisor or its affiliated person by
the Fund, in connection with the investment by the Investing Management
Company in the Fund made at the direction of the Subadvisor. In the
event that the Subadvisor waives fees, the benefit of the waiver will
be passed through to the Investing Management Company.
    6. No Investing Fund or Investing Fund Affiliate (except to the
extent it is acting in its capacity as an investment adviser to a Fund)
will cause a Fund to purchase a security in an Affiliated Underwriting.
    7. The Board of the Fund, including a majority of the disinterested
Board members, will adopt procedures reasonably designed to monitor any
purchases of securities by the Fund in an Affiliated Underwriting, once
an investment by an Investing Fund in the securities of the Fund
exceeds the limit of section 12(d)(1)(A)(i) of the Act, including any
purchases made directly from an Underwriting Affiliate. The Board will
review these purchases periodically, but no less frequently than
annually, to determine whether the purchases were influenced by the
investment by the Investing Fund in the Fund. The Board will consider,
among other things: (i) Whether the purchases were consistent with the
investment objectives and policies of the Fund; (ii) how the
performance of securities purchased in an Affiliated Underwriting
compares to the performance of comparable securities purchased during a
comparable period of time in underwritings other than Affiliated
Underwritings or to a benchmark such as a comparable market index; and
(iii) whether the amount of securities purchased by the Fund in
Affiliated Underwritings and the amount purchased directly from an
Underwriting Affiliate have changed significantly from prior years. The
Board will take any appropriate actions based on its review, including,
if appropriate, the institution of procedures designed to assure that
purchases of securities in Affiliated Underwritings are in the best
interest of shareholders.
    8. Each Fund will maintain and preserve permanently in an easily
accessible place a written copy of the procedures described in the
preceding condition, and any modifications to such procedures, and will
maintain and preserve for a period of not less than six years from the
end of the fiscal year in which any purchase in an Affiliated
Underwriting occurred, the first two years in an easily accessible
place, a written record of each purchase of securities in Affiliated
Underwritings once an investment by an Investing Fund in the securities
of the Fund exceeds the limit of section 12(d)(1)(A)(i) of the 1940
Act, setting forth from whom the securities were acquired, the identity
of the underwriting syndicate's members, the terms of the purchase, and
the information or materials upon which the Board's determinations were
made.
    9. Before investing in a Fund in excess of the limit in section
12(d)(1)(A), an Investing Fund will execute a FOF Participation
Agreement with the Fund stating that their respective boards of
directors or trustees and their investment advisors, or Trustee and
Sponsor, as applicable, understand the terms and conditions of the
order, and agree to fulfill their responsibilities under the order. At
the time of its investment in shares of a Fund in excess of the limit
in section 12(d)(1)(A)(i), an Investing Fund will notify the Fund of
the investment. At such time, the Investing Fund will also transmit to
the Fund a list of the names of each Investing Fund Affiliate and
Underwriting Affiliate. The Investing Fund will notify the Fund of any
changes to the list as soon as reasonably practicable after a change
occurs. The Fund and the Investing Fund will maintain and preserve a
copy of the order, the FOF Participation Agreement, and the list with
any updated information for the duration of the investment and for a
period of not less than six years thereafter, the first two years in an
easily accessible place.
    10. Before approving any advisory contract under section 15 of the
Act, the board of directors or trustees of each Investing Management
Company, including a majority of the disinterested directors or
trustees, will find that the advisory fees charged under such contract
are based on services provided that will be in addition to, rather than
duplicative of, the services provided under the advisory contract(s) of
any Fund in which the Investing Management Company may invest. These
findings and their basis will be recorded fully in the minute books of
the appropriate Investing Management Company.
    11. Any sales charges and/or service fees charged with respect to
shares of an Investing Fund will not exceed the limits applicable to a
fund of funds as set forth in Rule 2830.
    12. No Fund will acquire securities of any investment company or
company relying on section 3(c)(1) or 3(c)(7) of the Act in excess of
the limits contained in section 12(d)(1)(A) of the Act.

    By the Commission.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-2269 Filed 2-6-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)]
[Rules and Regulations]
[Pages 72555-72560]
[FR Doc No: 2015-29625]

========================================================================
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.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.

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

Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 /
Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2015-3369; Special Conditions No. 25-606-SC]

Special Conditions: Associated Air Center, Boeing Model 747-8
Airplane; Shoulder-Belt Airbags for Side-Facing Seats

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions; request for comments.

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

SUMMARY: These special conditions are issued for the Boeing Model 747-8
airplane. This airplane, as modified by Associated Air Center, will
have novel or unusual design features associated with side-facing seats
and airbag-equipped shoulder belts for these side-facing seats. The
applicable airworthiness regulations do not contain adequate or
appropriate safety standards for these design features. 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: The effective date of these special conditions is November 20,
2015. We must receive your comments by January 4, 2016.

ADDRESSES: Send comments identified by docket number FAA-2015-3369
using any of the following methods:
    Federal eRegulations Portal: Go to http://www.regulations.gov/ and
follow the online instructions for sending your comments
electronically.
    Mail: Send comments to Docket Operations, M-30, U.S. Department of
Transportation (DOT), 1200 New Jersey Avenue SE., Room W12-140, West
Building Ground Floor, Washington, DC 20590-0001.
    Hand Delivery or Courier: Take comments to Docket Operations in
Room W12-140 of the West Building Ground Floor at 1200 New Jersey
Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
    Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket Web site, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov/.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Jayson Claar, Airframe and Cabin
Safety, ANM-115, Transport Airplane Directorate, Aircraft Certification
Service, 1601 Lind Avenue SW., Renton, Washington 98057-3356; telephone
425-227-2194; facsimile<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FAA has determined that notice of, and
opportunity for prior public comment on, these special conditions are
impracticable because these procedures would significantly delay
issuance of the design approval and thus delivery of the affected
airplane.
    In addition, the substance of these special conditions has been
subject to the public-comment process in several prior instances with
no substantive comments received. The FAA therefore finds that good
cause exists for making these special conditions effective upon
publication in the Federal Register.

Comments Invited

    We invite interested people to take part in this rulemaking by
sending written comments, data, or views. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data.
    We will consider all comments we receive by the closing date for
comments. We may change these special conditions based on the comments
we receive.

Background

    On March 1, 2013, Associated Air Center applied for a supplemental
type certificate, project no. AAC-12-04-ODA, for side-facing seats with
airbag-equipped shoulder belts to be installed in Boeing Model 747-8
airplanes.
    The Boeing Model 747-8 airplane, as modified by Associated Air
Center, includes a head-of-state interior with a maximum passenger-
seating capacity of 112. Twelve of the passenger-seating positions will
be single-passenger, side-facing seats, each of which will be outfitted
with an airbag system in the shoulder belts.

Type Certification Basis

    Under the provisions of Title 14, Code of Federal Regulations (14
CFR) 21.101, Associated Air Center must show that the Boeing Model 747-
8 airplane, as changed, continues to meet the applicable provisions of
the regulations incorporated by reference in type certificate no. A20WE
or the applicable regulations in effect on the date of application for
the change. The regulations incorporated by reference in the type
certificate are commonly referred to as the ``original type
certification basis.'' The regulations incorporated by reference in
type certificate no. A20WE are as follows:
    The certification basis for areas changed or affected by the
Associated Air Center STC is 14 CFR part 25, as amended by Amendment
25-1 through Amendment 25-120, with exceptions permitted by Sec.
21.101. The certification basis includes special conditions and
exemptions that are not relevant to these proposed special conditions.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards

for the Boeing Model 747-8 airplane, as modified by Associated Air
Center, 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 applicant apply for a supplemental type
certificate to modify any other model included on the same type
certificate to incorporate the same or similar 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 Boeing Model 747-8 airplane, as modified by Associated
Air Center, must comply with the fuel-vent and exhaust-emission
requirements of 14 CFR part 34 and 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 Features

    The Boeing Model 747-8 airplane, as modified by Associated Air
Center, will incorporate the following novel or unusual design
features:
    These airplanes will have interior configurations with multiple-
place side-facing seats and single-place side-facing seats that include
airbag systems in the shoulder belts. Side-facing seats are considered
a novel or unusual design for transport-category airplanes that include
Amendment 25-64 in their certification basis, and were not anticipated
when those airworthiness standards were issued. Therefore, the existing
regulations do not provide adequate or appropriate safety standards for
occupants of side-facing seats. The airbag systems in the shoulder
belts on side-facing seats are designed to limit occupant forward
excursion in the event of an accident. These airbag systems are novel
or unusual for commercial aviation.

Discussion

    The FAA has been conducting research to develop an acceptable
method of compliance with Sec.  25.785(b) for side-facing seat
installations. That research has identified additional injury
considerations and evaluation criteria. See published report DOT/FAA/
AR-09/41, July 2011.
    Before this research, the FAA had been granting exemptions for the
multiple-place side-facing seat installations because an adequate
method of compliance was not available to produce an equivalent level
of safety to that level of safety provided for the forward- and aft-
facing seats. These exemptions were subject to many conditions that
reflected the injury-evaluation criteria and mitigation strategies
available at the time of the exemption issuance. The FAA has developed
a methodology to address all fully side-facing seats (i.e., seats
oriented in the airplane with the occupant facing 90 degrees to the
direction of airplane travel) and is documenting those requirements in
these special conditions. Some of the previous conditions issued for
exemptions are still relevant and are included in these new special
conditions. However, many of the conditions for exemption have been
replaced by different criteria that reflect current research findings.
    The FAA had been issuing special conditions to address single-place
side-facing seats; however, application of the current research
findings has allowed issuing special conditions that are applicable to
all fully side-facing seats, both multiple-place and single-place.
    Neck-injury evaluation methods applicable to the most common side-
facing seat configurations were identified during recent FAA research.
The scope of that research, however, did not include deriving specific
injury criteria for all possible loading scenarios that could occur to
occupants of fully side-facing seats. To limit the injury risk in those
cases, these special conditions provide conservative injury-evaluation
means that are derived from past practice and applicable scientific
literature.
    Serious leg injuries, such as femur fractures, can occur in
aviation side-facing seats that could threaten the occupants' lives
directly or reduce their ability to evacuate. Limiting upper-leg axial
rotation to a conservative limit of 35 degrees (approximately the 50
percentile range of motion) should also limit the risk of serious leg
injuries. It is believed that the angle of rotation can be determined
by observing lower-leg flailing in typical high-speed video of the
dynamic tests. This requirement complies with the intent of the Sec.
25.562 (b)(6) injury criteria in preventing serious leg injury.
    The requirement to provide support for the pelvis, upper arm,
chest, and head contained in previous special conditions for single-
place side-facing seats has been replaced in the new special conditions
applicable to all fully side-facing seats with requirements for neck-
injury evaluation, leg-flail limits, pelvis-excursion limits, head-
excursion limits, and torso lateral-bending limits that directly assess
the effectiveness of the support provided by the seat and restraint
system.
    To protect occupants in aft-facing seats, those seats must have
sufficient height and stiffness to support occupants' heads and spines.
Providing this support is intended to reduce spinal injuries when
occupant inertial forces cause their heads and spines to load against
the seat backs. If, during a side-facing-seat dynamic test, the
flailing of the occupants causes their heads to translate beyond the
planes of the seat backs, then this lack of support would not comply
with the intent of the requirement to prevent spine injuries, and would
not provide the same level of safety afforded occupants of forward- and
aft-facing seats.
    Results from tests that produced lateral flailing over an armrest
indicate that serious injuries, including spinal fractures, would
likely occur. While no criteria currently relates the amount of lateral
flail to a specific risk of injury, if lateral flexion is limited to
the normal static range of motion, then the risk of injury should be
low. This range of motion is approximately 40 degrees from the upright
position. Ensuring that lateral flexion does not create a significant
injury risk is consistent with the goal of providing an equivalent
level of safety to that provided by forward- or aft-facing seats,
because that type of articulation of those seats does not occur during
forward impacts.
    Section 25.562 requires that the restraints remain on the shoulders
and pelvises of the occupants during impact. Advisory Circular (AC)
25.562-1B, ``Dynamic Evaluation of Seat Restraint Systems and Occupant
Protection on Transport Airplanes,'' dated January 10, 2006, clarifies
this requirement by stating that restraints must remain on the
shoulders and pelvises when loaded by the occupants. This criterion is
necessary to protect the occupants from serious injuries that could be
caused by lap-belt contact forces applied to soft tissue, or by
ineffectively restraining the upper torsos in the event the upper-torso
restraints slide off the shoulders. In forward-facing seats (the type
specifically addressed in that AC), occupant motion during rebound, and
any subsequent re-loading of the belts, is limited by interaction with
the seat backs. However, in side-facing seats subjected to a forward
impact, the restraint systems may be the only means of limiting the
occupants' rearward (rebound) motion. Likewise, to limit abdominal-
injury risk in side-facing seats, the lap belts must remain on the

pelvis throughout the impact event, including rebound.
    During side-facing-seat dynamic tests, the risk for head injury is
assessed with only one occupant size (the 50th percentile male as
represented by the ES-2re, as defined in 49 CFR part 572, supbart U).
However, protection for a range of occupant statures can be provided if
the impacted surface is homogenous in the area contactable by that
range of occupants.
    The FAA has issued special conditions in the past for airbag
systems on lap belts for some forward-facing seats. These special
conditions for the airbag systems in the shoulder belts are based on
the previous special conditions for airbag systems on lap belts, with
some changes to address the specific issues of side-facing seats. The
special conditions are not an installation approval. Therefore, while
the special conditions relate to each such system installed, the
overall installation approval is a separate finding and must consider
the combined effects of all such systems installed.
    The FAA has considered the installation of airbag systems in the
shoulder belts to have two primary safety concerns: First, that the
systems perform properly under foreseeable operating conditions, and
second, that the systems do not perform in a manner or at such times as
would constitute a hazard to the occupants. This latter point has the
potential to be the more rigorous of the requirements, owing to the
active nature of the system.
    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.

Applicability

    As discussed above, these special conditions are applicable to the
Boeing Model 747-8 airplane as modified by Associated Air Center.
Should the applicant apply at a later date for a supplemental type
certificate to modify any other model included on type certificate no.
A20WE to incorporate the same novel or unusual design feature, the
special conditions would apply to that model as well.

Conclusion

    This action affects only certain novel or unusual design features
on one model of airplane. It is not a rule of general applicability and
affects only the applicant who applied to the FAA for approval of these
features on the airplane.
    The substance of these special conditions has been subjected to the
notice-and-comment period in several prior instances and has been
derived without substantive change from those previously issued. It is
unlikely that prior public comment would result in a significant change
from the substance contained herein. Therefore, because a delay would
significantly affect the certification of the airplane, the FAA has
determined that prior public notice and comment are unnecessary and
impracticable, and good cause exists for adopting these special
conditions upon publication in the Federal Register. The FAA is
requesting comments to allow interested persons to submit views that
may not have been submitted in response to the prior opportunities for
comment described above.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

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

The Special Conditions

0
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 Boeing Model 747-8 airplanes as
modified by Associated Air Center.
    In addition to the requirements of Sec. Sec.  25.562 and 25.785,
the following special condition numbers 1 and 2 are part of the type
certification basis of the Boeing Model 747-8 airplane with side-
facing-seat installations, as modified by Associated Air Center. For
seat places equipped with airbag systems in the shoulder belts,
additional special condition numbers 3 through 16 are part of the type
certification basis.
    1. Additional requirements applicable to tests or rational analysis
conducted to show compliance with Sec. Sec.  25.562 and 25.785 for
side-facing seats:
    (a) The longitudinal test(s) conducted in accordance with Sec.
25.562(b)(2) to show compliance with the seat-strength requirements of
Sec.  25.562(c)(7) and (8) and these special conditions must have an
ES-2re anthropomorphic test dummy (ATD) (49 CFR part 572, subpart U) or
equivalent, or a Hybrid-II ATD (49 CFR part 572, subpart B, as
specified in Sec.  25.562) or equivalent occupying each seat position
and including all items contactable by the occupant (e.g., armrest,
interior wall, or furnishing) if those items are necessary to restrain
the occupant. If included, the floor representation and contactable
items must be located such that their relative position, with respect
to the center of the nearest seat place, is the same at the start of
the test as before floor misalignment is applied. For example, if floor
misalignment rotates the centerline of the seat place nearest the
contactable item 8 degrees clockwise about the airplane x-axis, then
the item and floor representations must be rotated by 8 degrees
clockwise also to maintain the same relative position to the seat
place, as shown in Figure 1 of these special conditions. Each ATD's
relative position to the seat after application of floor misalignment
must be the same as before misalignment is applied. To ensure proper
occupant loading of the seat, the ATD pelvis must remain supported by
the seat pan, and the restraint system must remain on the pelvis and
shoulder of the ATD until rebound begins. No injury-criteria evaluation
is necessary for tests conducted only to assess seat-strength
requirements.

[GRAPHIC] [TIFF OMITTED] TR20NO15.001

    (b) The longitudinal test(s) conducted in accordance with Sec.
25.562(b)(2), to show compliance with the injury assessments required
by Sec.  25.562(c) and these special conditions, may be conducted
separately from the test(s) to show structural integrity. In this case,
structural-assessment tests must be conducted as specified in paragraph
1(a) of these special conditions, and the injury-assessment test must
be conducted without yaw or floor misalignment. Injury assessments may
be accomplished by testing with ES-2re ATD (49 CFR part 572, subpart U)
or equivalent at all places. Alternatively, these assessments may be
accomplished by multiple tests that use an ES-2re at the seat place
being evaluated and a Hybrid-II ATD (49 CFR part 572, subpart B, as
specified in Sec.  25.562) or equivalent used in all seat places
forward of the one being assessed to evaluate occupant interaction. In
this case, seat places aft of the one being assessed may be unoccupied.
If a seat installation includes adjacent items that are contactable by
the occupant, the injury potential of that contact must be assessed. To
make this assessment, tests may be conducted that include the actual
item located and attached in a representative fashion. Alternatively,
the injury potential may be assessed by a combination of tests with
items having the same geometry as the actual item but having stiffness
characteristics that would create the worst case for injury (injuries
due to both contact with the item and lack of support from the item).
    (c) If a seat is installed aft of a structure (e.g., an interior
wall or furnishing) that does not have a homogeneous surface
contactable by the occupant, additional analysis and/or test(s) may be
required to demonstrate that the injury criteria are met for the area
which an occupant could contact. For example, different yaw angles
could result in different injury considerations and may require
additional analysis or separate test(s) to evaluate.
    (d) To accommodate a range of occupant heights (5th percentile
female to 95th percentile male), the surface of items contactable by
the occupant must be homogenous 7.3 inches (185 mm) above and 7.9
inches (200 mm) below the point (center of area) that is contacted by
the 50th percentile male size ATD's head during the longitudinal
test(s) conducted in accordance with paragraphs 1(a), 1(b), and 1(c) of
these special conditions. Otherwise, additional head-injury criteria
(HIC) assessment tests may be necessary. Any surface (inflatable or
otherwise) that provides support for the occupant of any seat place
must provide that

support in a consistent manner regardless of occupant stature. For
example, if an inflatable shoulder belt is used to mitigate injury
risk, then it must be demonstrated by inspection to bear against the
range of occupants in a similar manner before and after inflation.
Likewise, the means of limiting lower-leg flail must be demonstrated by
inspection to provide protection for the range of occupants in a
similar manner.
    (e) For longitudinal test(s) conducted in accordance with Sec.
25.562(b)(2) and these special conditions, the ATDs must be positioned,
clothed, and have lateral instrumentation configured as follows:
    (1) ATD positioning:
    (i) Lower the ATD vertically into the seat while simultaneously
(see Figure 2 of these special conditions):
[GRAPHIC] [TIFF OMITTED] TR20NO15.002

    (A) Aligning the midsagittal plane (a vertical plane through the
midline of the body; dividing the body into right and left halves) with
approximately the middle of the seat place.
    (B) Applying a horizontal x-axis direction (in the ATD coordinate
system) force of about 20 pounds (lbs) (89 Newtons [N]) to the torso at
approximately the intersection of the midsagittal plane and the bottom
rib of the ES-2re or lower sternum of the Hybrid-II at the midsagittal
plane, to compress the seat back cushion.
    (C) Keeping the upper legs nearly horizontal by supporting them
just behind the knees.
    (ii) Once all lifting devices have been removed from the ATD:
    (A) Rock it slightly to settle it in the seat.
    (B) Separate the knees by about 4 inches (100 mm).
    (C) Set the ES-2re's head at approximately the midpoint of the
available range of z-axis rotation (to align the head and torso
midsagittal planes).
    (D) Position the ES-2re's arms at the joint's mechanical detent
that puts them at approximately a 40-degree angle with respect to the
torso. Position the Hybrid-II ATD hands on top of its upper legs.
    (E) Position the feet such that the centerlines of the lower legs
are approximately parallel to a lateral vertical plane (in the airplane
coordinate system).
    (2) ATD clothing: Clothe each ATD in form-fitting, mid-calf-length
(minimum) pants and shoes (size 11E) weighing about 2.5 lb (1.1 kg)
total. The color of the clothing should be in contrast to the color of
the restraint system. The ES-2re jacket is sufficient for torso
clothing, although a form-fitting shirt may be used in addition if
desired.
    (3) ES-2re ATD lateral instrumentation: The rib-module linear
slides are directional, i.e., deflection occurs in either a positive or
negative ATD y-axis direction. The modules must be installed such that
the moving end of the rib module is toward the front of the airplane.
The three abdominal-force sensors must be installed such that they

are on the side of the ATD toward the front of the airplane.
    (f) The combined horizontal/vertical test, required by Sec.
25.562(b)(1) and these special conditions, must be conducted with a
Hybrid II ATD (49 CFR part 572, subpart B, as specified in Sec.
25.562), or equivalent, occupying each seat position.
    (g) Restraint systems:
    (1) If inflatable restraint systems are used, they must be active
during all dynamic tests conducted to show compliance with Sec.
25.562.
    (2) The design and installation of seat-belt buckles must prevent
unbuckling due to applied inertial forces or impact of the hands/arms
of the occupant during an emergency landing.
    2. Additional performance measures applicable to tests and rational
analysis conducted to show compliance with Sec. Sec.  25.562 and 25.785
for side-facing seats:
    (a) Body-to-body contact: Contact between the head, pelvis, torso,
or shoulder area of one ATD with the adjacent-seated ATD's head,
pelvis, torso, or shoulder area is not allowed. Contact during rebound
is allowed.
    (b) Thoracic: The deflection of any of the ES-2re ATD upper,
middle, and lower ribs must not exceed 1.73 inches (44 mm). Data must
be processed as defined in Federal Motor Vehicle Safety Standards
(FMVSS) 571.214.
    (c) Abdominal: The sum of the measured ES-2re ATD front, middle,
and rear abdominal forces must not exceed 562 lb (2,500 N). Data must
be processed as defined in FMVSS 571.214.
    (d) Pelvic: The pubic symphysis force measured by the ES-2re ATD
must not exceed 1,350 lb (6,000 N). Data must be processed as defined
in FMVSS 571.214.
    (e) Leg: Axial rotation of the upper-leg (femur) must be limited to
35 degrees in either direction from the nominal seated position.
    (f) Neck: As measured by the ES-2re ATD and filtered at channel
frequency class (CFC) 600 as defined in SAE J211:
    (1) The upper-neck tension force at the occipital condyle location
must be less than 405 lb (1,800 N).
    (2) The upper-neck compression force at the occipital condyle
location must be less than 405 lb (1,800 N).
    (3) The upper-neck bending torque about the ATD x-axis at the
occipital condyle location must be less than 1,018 in-lb (115 Nm).
    (4) The upper-neck resultant shear force at the occipital condyle
location must be less than 186 lb (825 N).
    (g) Occupant (ES-2re ATD) retention: The pelvic restraint must
remain on the ES-2re ATD's pelvis during the impact and rebound phases
of the test. The upper-torso restraint straps (if present) must remain
on the ATD's shoulder during the impact.
    (h) Occupant (ES-2re ATD) support:
    (1) Pelvis excursion: The load-bearing portion of the bottom of the
ATD pelvis must not translate beyond the edges of its seat's bottom
seat-cushion supporting structure.
    (2) Upper-torso support: The lateral flexion of the ATD torso must
not exceed 40 degrees from the normal upright position during the
impact.
    3. For seats with airbag systems in the shoulder belts, show that
the airbag systems in the shoulder belts will deploy and provide
protection under crash conditions where it is necessary to prevent
serious injury. The means of protection must take into consideration a
range of stature from a 2-year-old child to a 95th percentile male. The
airbag systems in the shoulder belts must provide a consistent approach
to energy absorption throughout that range of occupants. When the seat
systems include airbag systems, the systems must be included in each of
the certification tests as they would be installed in the airplane. In
addition, the following situations must be considered:
    (a) The seat occupant is holding an infant.
    (b) The seat occupant is pregnant.
    4. The airbag systems in the shoulder belts must provide adequate
protection for each occupant regardless of the number of occupants of
the seat assembly, considering that unoccupied seats may have active
airbag systems in the shoulder belts.
    5. The design must prevent the airbag systems in the shoulder belts
from being either incorrectly buckled or incorrectly installed, such
that the airbag systems in the shoulder belts would not properly
deploy. Alternatively, it must be shown that such deployment is not
hazardous to the occupant and will provide the required injury
protection.
    6. It must be shown that the airbag systems in the shoulder belts
are not susceptible to inadvertent deployment as a result of wear and
tear, inertial loads resulting from in-flight or ground maneuvers
(e.g., including gusts and hard landings), and other operating and
environmental conditions (e.g., vibrations and moisture) likely to
occur in service.
    7. Deployment of the airbag systems in the shoulder belts must not
introduce injury mechanisms to the seated occupants or result in
injuries that could impede rapid egress. This assessment should include
an occupant whose shoulder belt is loosely fastened.
    8. It must be shown that inadvertent deployment of the airbag
systems in the shoulder belts, during the most critical part of the
flight, will either meet the requirement of Sec.  25.1309(b) or not
cause a hazard to the airplane or its occupants.
    9. It must be shown that the airbag systems in the shoulder belts
will not impede rapid egress of occupants 10 seconds after airbag
deployment.
    10. The airbag systems must be protected from lightning and high-
intensity radiated fields (HIRF). The threats to the airplane specified
in existing regulations regarding lighting, Sec.  25.1316, and HIRF,
Sec.  25.1317, are incorporated by reference for the purpose of
measuring lightning and HIRF protection.
    11. The airbag systems in the shoulder belts must function properly
after loss of normal airplane electrical power, and after a transverse
separation of the fuselage at the most critical location. A separation
at the location of the airbag systems in the shoulder belts does not
have to be considered.
    12. It must be shown that the airbag systems in the shoulder belts
will not release hazardous quantities of gas or particulate matter into
the cabin.
    13. The airbag systems in the shoulder-belt installations must be
protected from the effects of fire such that no hazard to occupants
will result.
    14. A means must be available for a crew member to verify the
integrity of the airbag systems in the shoulder-belt activation system
prior to each flight, or it must be demonstrated to reliably operate
between inspection intervals. The FAA considers that the loss of the
airbag-system deployment function alone (i.e., independent of the
conditional event that requires the airbag-system deployment) is a
major-failure condition.
    15. The inflatable material may not have an average burn rate of
greater than 2.5 inches per minute when tested using the horizontal
flammability test defined in part 25, appendix F, part I, paragraph
(b)(5).
    16. Once deployed, the airbag systems in the shoulder belts must
not adversely affect the emergency-lighting system (e.g., block floor
proximity lights to the extent that the lights no longer meet their
intended function).

    Issued in Renton, Washington, on November 12, 2015.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-29625 Filed 11-19-15; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 83, Number 167 (Tuesday, August 28, 2018)]
[Notices]
[Pages 43862-43863]
[FR Doc No: 2018-18603]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP18-1066-000.
    Applicants: Columbia Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: TCO MXP August Agreement
Filing to be effective 9/18/2018.
    Filed Date: 8/20/18.
    Accession Number: 20180820-5000.
    Comments Due: 5 p.m. ET 9/4/18.

    Docket Numbers: RP18-1067-000.
    Applicants: WBI Energy Transmission, Inc.
    Description: Sec.  4(d) Rate Filing: 2018 Negotiated Rate Filing SA
IT-836 to be effective 9/1/2018.
    Filed Date: 8/21/18.
    Accession Number: 20180821-5030.
    Comments Due: 5 p.m. ET 9/4/18.

    Docket Numbers: RP18-1068-000.
    Applicants: Colorado Interstate Gas Company, L.L.C.
    Description: 2018 Penalties Assessed Compliance Filing.
    Filed Date: 8/20/18.
    Accession Number: 20180820-5186.
    Comments Due: 5 p.m. ET 9/4/18.

    Docket Numbers: RP18-1069-000.
    Applicants: Texas Eastern Transmission, LP.
    Description: Sec.  4(d) Rate Filing: Negotiated Rates--PAL
Agreements to be effective 8/1/2018.
    Filed Date: 8/21/18.
    Accession Number: 20180821-5089.
    Comments Due: 5 p.m. ET 9/4/18.

    Docket Numbers: RP18-1070-000.
    Applicants: ANR Pipeline Company.

    Description: Compliance filing Request for Waiver Grand Chenier.
    Filed Date: 8/21/18.
    Accession Number: 20180821-5111.
    Comments Due: 5 p.m. ET 8/28/18.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: August 22, 2018.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2018-18603 Filed 8-27-18; 8:45 am]
BILLING CODE 6717-01-P