[Federal Register Volume 84, Number 63 (Tuesday, April 2, 2019)]
[Proposed Rules]
[Pages 12532-12534]
[FR Doc No: 2019-06280]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2019-0203; Product Identifier 2018-CE-052-AD]
RIN 2120-AA64

Airworthiness Directives; Diamond Aircraft Industries GmbH
Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain Diamond Aircraft Industries GmbH Model DA 42 NG and Model DA 42
M-NG airplanes. This proposed AD results from mandatory continuing
airworthiness information (MCAI) originated by an aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The unsafe condition in the MCAI is insufficient
clearance of the gust lock mounts on the pilot side rudder pedals. We
are issuing this proposed AD to require actions to

address the unsafe condition on these products.

DATES: We must receive comments on this proposed AD by May 17, 2019.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact
Diamond Aircraft Industries GmbH, N.A. Otto-Stra[szlig]e 5, A-2700
Wiener Neustadt, Austria, telephone: +43 2622 26700; fax: +43 2622
26780; email: [email protected]; Internet: http://www.diamondaircraft.com. You may review this referenced service
information at the FAA, Policy and Innovation Division, 901 Locust,
Kansas City, Missouri 64106. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2019-
0203; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this proposed AD, the regulatory evaluation, any comments received, and
other information. The street address for Docket Operations (telephone
(800) 647-5527) is in the ADDRESSES section. Comments will be available
in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Mike Kiesov, Aerospace Engineer, FAA,
Small Airplane Standards Branch, 901 Locust, Room 301, Kansas City,
Missouri 64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
[email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2019-0203;
Product Identifier 2018-CE-052-AD'' at the beginning of your comments.
We specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this proposed AD. We will consider
all comments received by the closing date and may amend this proposed
AD because of those comments.
    We will post all comments we receive, without change, to http://regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued AD
No. 2018-0214, dated October 4, 2018 (referred to after this as ``the
MCAI''), to correct an unsafe condition for the specified products. The
MCAI states:

    During production check-out of two DA 42 NG aeroplanes, it was
noticed that, with the adjustable rudder pedals in full forward
position, the gust lock mounts slightly touched the canopy gas
spring damper. The subsequent investigation found that this was due
to an unfavourable combination of production tolerances on these two
aeroplanes. [Diamond Aircraft Industries GmbH] DAI determined that
other aeroplanes of the same build standard (configuration) may also
be affected.
    This condition, if not corrected, could lead to restricted
rudder travel, possibly resulting in reduced control of the
aeroplane.
    Prompted by these findings, DAI published the [mandatory service
bulletin] MSB, providing modification instructions to remove the
gust lock mounts on the pilot (left-hand, LH) side rudder pedals to
ensure sufficient clearance, regardless of production tolerances and
rudder pedal position.
    For the reason described above, this [EASA] AD requires
implementation of a temporary revision (TR) to the applicable
Airplane Flight Manual (AFM) and a modification, removing the pilot
(LH) side rudder pedal gust lock mounts.

    You may examine the MCAI on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2019-
0203.

Related Service Information Under 1 CFR Part 51

    We reviewed Diamond Aircraft Temporary Revision TR-M[Auml]M 42-1097
Gustlock on Co-Pilot Side only, Doc. #7.01.15-E, dated July 18, 2018
(TR-MAM 42-1097), which contains amended figures related to the gust
lock belt. We also reviewed Diamond Aircraft Industries GmbH Work
Instruction WI-MSB 42NG-077, dated August 20, 2018, which contains
procedures for removing the pilot (LH) side rudder pedal gust lock
mounts and specifies inserting a copy of TR-MAM 42-1097 into the
airplane flight manual (AFM). This service information is reasonably
available because the interested parties have access to it through
their normal course of business or by the means identified in the
ADDRESSES section.

FAA's Determination and Requirements of This Proposed AD

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

Costs of Compliance

    We estimate that this proposed AD would affect 53 products of U.S.
registry. We also estimate that it would take about 1 work-hour per
product to comply with the removal of the pilot side rudder pedal gust
lock mounts and to insert copy of TR-MAM 42-1097 into the AFM. The
average labor rate is $85 per work-hour. Required parts would cost
about $10 per product.
    Based on these figures, we estimate the cost of this proposed AD on
U.S. operators to be $5,035, or $95 per product.

Authority for This Rulemaking

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

    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to small airplanes, gliders,
balloons, airships, domestic business jet transport airplanes, and
associated appliances to the Director of the Policy and Innovation
Division.

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

Diamond Aircraft Industries GmbH: Docket No. FAA-2019-0203; Product
Identifier 2018-CE-052-AD.

(a) Comments Due Date

    We must receive comments by May 17, 2019.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Diamond Aircraft Industries GmbH (Diamond)
Model DA 42 NG and Model DA 42 M-NG airplanes, serial numbers
42.N202, 42.N203, 42.N205 through 42.N207, 42.N210 through 42.N214,
42.N229 through 42.N338, 42.N340, 42.MN055, 42.MN057, and 42.MN058,
certificated in any category.

(d) Subject

    Air Transport Association of America (ATA) Code 27: Flight
Controls.

(e) Reason

    This AD was prompted by mandatory continuing airworthiness
information (MCAI) originated by an aviation authority of another
country to identify and correct an unsafe condition on an aviation
product. The unsafe condition reported by the MCAI is insufficient
clearance of the gust lock mounts on the pilot side rudder pedals.
We are issuing this AD to prevent restricted rudder travel, which
could result in reduced control of the airplane.

(f) Actions and Compliance

    Unless already done, do the following actions in paragraphs
(f)(1) and (2) of this AD.
    (1) Within the next 100 hours time-in-service after the
effective date of this AD:
    (i) Remove the pilot (left-hand) side rudder pedal gust lock
mounts in accordance with steps 1 through 5 of the Instructions in
Diamond Aircraft Industries GmbH Work Instruction WI-MSB 42NG-077,
dated August 20, 2018.
    (ii) Revise the airplane flight manual (AFM) by adding the
figures on page 8-11a of Diamond Aircraft Temporary Revision TR-
M[Auml]M 42-1097 Gustlock on Co-Pilot Side only, Doc. #7.01.15-E,
dated July 18, 2018, into Chapter 8 of the AFM.
    (2) As of the effective date of this AD, do not install on any
airplane a pilot (left-hand) side rudder pedal gust lock mount.

(g) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Small Airplane Standards Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. Send information to ATTN: Mike Kiesov, Aerospace Engineer,
FAA, Small Airplane Standards Branch, 901 Locust, Room 301, Kansas
City, Missouri 64106; telephone:<PHONE_NUMBER>; fax: (816) 329-
4090; email: [email protected]. Before using any approved AMOC on
any airplane to which the AMOC applies, notify your appropriate
principal inspector (PI) in the FAA Flight Standards District Office
(FSDO), or lacking a PI, your local FSDO.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must
instead be accomplished using a method approved by the Manager,
Small Airplane Standards Branch, FAA, or the European Aviation
Safety Agency (EASA).

(h) Related Information

    Refer to MCAI EASA AD No. 2018-0214, dated October 4, 2018; and
Diamond Mandatory Service Bulletin MSB 42NG-077, dated August 20,
2018, for related information. You may examine the MCAI on the
internet at http://www.regulations.gov by searching for and locating
Docket No. FAA-2019-0203. For service information related to this
AD, contact Diamond Aircraft Industries GmbH, N.A. Otto-Stra[szlig]e
5, A-2700 Wiener Neustadt, Austria, telephone: +43 2622 26700; fax:
+43 2622 26780; email: [email protected]; internet: http://www.diamondaircraft.com. You may review this referenced service
information at the FAA, Policy and Innovation Division, 901 Locust,
Kansas City, Missouri 64106. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.

    Issued in Kansas City, Missouri, on March 25, 2019.
Melvin J. Johnson,
Aircraft Certification Service, Deputy Director, Policy and Innovation
Division, AIR-601.
[FR Doc. 2019-06280 Filed 4-1-19; 8:45 am]
BILLING CODE 4910-13-P


A. Introduction

    Rule 12d1-4 will result in a new ``collection of information''
within the meaning of the Paperwork Reduction Act of 1995
(``PRA'').\727\ In addition, the adoption of rule 12d1-4 will affect
the current collection of information burden of rule 0-2 under the
Act.\728\ The amendments to Form N-CEN also will affect the collection
of information burden under that form.\729\
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    \727\ 44 U.S.C. 3501 through 3521.
    \728\ 17 CFR 270.0-2.
    \729\ Form N-CEN [referenced in 17 CFR 274.101] under the
Investment Company Act.
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    The title for the new collection of information for rule 12d1-4
will be: ``Rule 12d1-4 Under the Investment Company Act of 1940, Fund
of Funds Arrangements.'' The titles for the existing collections of
information are: ``Rule 0-2 under the Investment Company Act of 1940,
General Requirements of Papers and Applications'' (OMB Control No.
3235-0636); and ``Form N-CEN'' (OMB Control No. 3235-0730). The
Commission is submitting these collections of information to the Office
of Management and Budget (``OMB'') for review in accordance with 44
U.S.C. 3507(d) and 5 CFR 1320.11. An agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information
unless it displays a currently valid control number.
    We published notice soliciting comments on the collection of
information requirements in the 2018 FOF Proposing Release and
submitted the proposed collections of information to OMB for review and
approval in accordance with 44 U.S.C. 3507(d) and 5 CFR 1320.11.\730\
We received one comment on the collection of information
requirements.\731\
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    \730\ See 2018 FOF Proposing Release, supra footnote 6. We also
published a notice soliciting comments on the collection of
information requirements in the 2008 ETF Proposing Release. We
similarly did not receive comments on the collection of information
requirements. See id. at n.339 and accompanying text.
    \731\ See Guggenheim Comment Letter (stating that lawyers and
accounting personnel would need to be involved with the proposed
findings requirement).

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B. Rule 12d1-4

    Rule 12d1-4 will permit certain registered funds and BDCs that
satisfy certain conditions to acquire shares of another fund in excess
of the limits of section 12(d)(1) of the Act without obtaining an
exemptive order from the Commission. These conditions include (1)
adherence to certain voting provisions, (2) for most funds, entering
into a fund of funds investment agreement, (3) for management
companies, certain evaluations and findings that are reported to a
fund's board, (4) for UITs, an evaluation by the principal underwriter
or depositor, and (5) for separate accounts funding variable insurance
contracts, the acquiring fund obtaining a certification by the
insurance company offering the separate account. These requirements are
collections of information for purposes of the PRA. These are the same
collections we identified in the 2018 FOF Proposing Release, with two
exceptions based upon changes to the rule from the proposal. We have
removed the disclosure requirements that were included in the proposed
estimate and added the fund of funds investment agreement element of
the collection.
    The respondents to rule 12d1-4 will be registered funds or
BDCs.\732\ The collection of information will be mandatory only for
entities that wish to operate in accordance with the new rule.
Information provided to the Commission in connection with staff
examinations or investigations will be kept confidential subject to the
provisions of applicable law.
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    \732\ See supra footnote 617 for the source of salary data.
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1. Voting Provisions
    Under rule 12d1-4, where an acquiring fund and its advisory group
(in the aggregate) hold more than 25% of the outstanding voting
securities of an acquired fund that is a registered open-end investment
company or registered UIT, the acquiring fund will be required to vote
those securities using mirror voting, unless certain exceptions
apply.\733\ If the acquired fund is a closed-end fund, the acquiring
fund and its advisory group must vote its securities using mirror
voting if they, in the aggregate, hold more than 10% of the outstanding
voting securities, unless certain exceptions apply.\734\ We estimate
that 450 acquiring funds will be subject to these requirements, 440 of
which will be utilizing mirror voting and 10 of which will be utilizing
pass-through voting in limited circumstances.\735\
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    \733\ See rule 12d1-4(b)(1)(ii) and (iv). As described above, in
mirror voting, the acquiring fund votes the shares it holds in the
same proportion as the vote of all other holders. In circumstances
where acquiring funds are the only shareholders of an acquired fund,
however, pass-through voting may be used.
    \734\ See rule 12d1-4(b)(1)(iii) and (iv).
    \735\ 450 acquiring funds that will invest in open-end funds or
UITs in reliance on rule 12d1-4 and beyond the 25% voting threshold
= 4,086 acquiring funds that will invest in other funds in reliance
on rule 12d1-4 x 11% of acquiring funds that invest in at least one
open-end fund or UIT beyond the 25% voting threshold of the rule.
4,086 acquiring funds that will invest in other funds in reliance on
rule 12d1-4 = 5,922 acquiring registered investment companies and
BDCs x 69% of acquiring funds that will be subject to rule 12d1-4 as
estimated by a commenter (see supra footnote 533 and associated
text). This estimate assumes that acquiring funds with current
investments in other funds beyond the limits of section 12(d)(1)
will be subject to rule 12d1-4 at the same rate as the acquiring
funds with current investments in other funds within the limits of
section 12(d)(1) following the rule adoption. 5,922 acquiring
registered investment companies and BDCs = [4,750 acquiring
management companies (see supra Table 2 in section V.B.1) + 37
acquiring BDCs (see supra footnotes 558 and 559 and accompanying
text)] x [14,605 registered investment companies (see supra Table 1
in section V.B.1) + 83 BDCs (see supra footnotes 554 and 555 and
associated text)]/[11,788 management companies (see supra Table 2) +
83 BDCs (see supra footnotes 558 and 559 and accompanying text)]. We
lack structured data that would allow us to estimate the percentage
of acquiring funds that are within the same group of investment
companies as the acquired fund or the acquiring fund's investment
sub-adviser or any person controlling, controlled by, or under
common control with such investment sub-adviser acts as the acquired
fund's investment adviser or depositor, and thus will be subject to
the rule's voting condition. To avoid underestimating the costs
associated with this aspect of rule 12d1-4, we assume that all 450
acquiring funds will be subject to this rule's conditions. Further,
the circumstances of an acquiring fund utilizing pass-through voting
in the final rule are limited and may be only for certain
investments. See supra footnote 621 and accompanying text.
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    Table 5 summarizes the final PRA estimates for internal and
external burdens associated with this requirement. This estimate is as
proposed, except that we (1) lowered the relative amount of funds that
are expected to use pass-through voting given the changes to that
requirement, (2) lowered the amount of funds estimated to be subject to
these provisions due to the raised threshold of when pass-through or
mirror voting will be required and (3) also lowered the expected number
of votes per year based upon updated analysis.\736\
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    \736\ The 2018 FOF Proposing Release contemplated that 809 funds
would be subject to this requirement based upon a 3% threshold,
rather than the 25% and 10% threshold we are adopting. See 2018 FOF
Proposing Release, supra footnote 6, at n.349 and accompanying text.
See also supra footnotes 735 and 621 and footnotes 569 through 570
and accompanying text (outlining updated voting analysis).

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2. Fund of Funds Investment Agreements
    As discussed in section II.C.2.4 above, unless the acquiring fund's
adviser acts as the acquired fund's investment adviser, the rule will
require that the acquiring fund enter into an agreement containing
certain provisions with the acquired fund effective for the duration of
the funds' reliance on the rule. Funds subject to this requirement must
maintain a copy of these agreements.\737\ We estimate that 9,240 fund
pairs will be subject to this requirement.\738\
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    \737\ Rule 12d1-4(b)(2)(iv) and (c).
    \738\ See supra footnote 661 and accompanying text.
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    Table 6 summarizes the final PRA estimates for internal and
external burdens associated with this requirement. This element of the
rule was not included in the proposal.
[GRAPHIC] [TIFF OMITTED] TR19NO20.004

3. Management Companies--Fund Findings
    In cases where the acquiring fund is a management company, rule
12d1-4 will require, prior to the initial acquisition of an acquired
fund in reliance on the rule, the acquiring fund's investment adviser
to evaluate the complexity of the structure and fees and expenses
associated with the acquiring fund's investment in the acquired fund,
and find that the acquiring fund's fees and expenses do not duplicate
the fees and expenses of the acquired fund. In cases where the acquired
fund is a management company, rule 12d1-4 will require, prior to the
initial acquisition of the acquired fund in reliance on the rule, the
acquired fund's investment adviser to find that any undue influence
concerns associated with the acquiring fund's investment in the
acquired fund are reasonably addressed and, as part of this finding,
the investment adviser must consider at a minimum certain enumerated
factors. The rule will

further require that each investment adviser report its evaluation,
finding, and the basis for its evaluation or finding to the fund's
board of directors no later than the next regularly scheduled meeting
of the board of directors. The rule also will require the acquiring and
acquired funds participating in fund of funds arrangements in
accordance with the rule to maintain and preserve a copy of each fund
of funds investment agreement that is in effect, or was in effect in
the past five years, and a written record of the relevant Fund Findings
(and the basis for the Fund Findings) made under the rule.\739\ We
estimate 6,178 funds will be subject to this requirement.\740\
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    \739\ Rule 12d1-4(b)(2)(i) and (c).
    \740\ See supra footnotes 651 and 646.
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    Table 7 summarizes the final PRA estimates for internal and
external burdens associated with this requirement. We have made some
changes to the estimate from the proposal based upon changes to the
rule as adopted.\741\ We increased the number of funds responding to
this collection since the final rule will require both the acquiring
and acquired funds to make certain findings under the rule. We have
also increased our estimated burdens regarding initial hour and cost
burdens due to the increased amount of factors that advisers would need
to consider as part of this collection. In response to a
commenter,\742\ we adjusted our estimates regarding the hours and wage
rates to conduct evaluations and the creation, review, and maintenance
of written materials. Lastly, we reduced the estimates regarding annual
hour burdens, and eliminated the estimate of external annual costs, due
to the elimination of the requirement to conduct on-going evaluations.
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    \741\ See 2018 FOF Proposing Release, supra footnote 6, at
nn.365-369 and accompanying text.
    \742\ See Guggenheim Comment Letter.
    [GRAPHIC] [TIFF OMITTED] TR19NO20.005

[GRAPHIC] [TIFF OMITTED] TR19NO20.006

4. UITs--Principal Underwriter or Depositor Evaluations
    The rule will require that, in cases where the acquiring fund is a
UIT, the UIT's principal underwriter or depositor must evaluate the
complexity of the structure associated with the UIT's investment in
acquired funds, and find that the UIT's fees and expenses do not
duplicate the fees and expenses of the acquired funds that the UIT
holds or will hold at the date of deposit. The UIT is also required to
keep records of the finding, and any basis for the finding.\743\ We
estimate 200 funds will be subject to this requirement.\744\
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    \743\ Rule 12d1-4(b)(2)(ii) and (c).
    \744\ See supra footnote 652.
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    Table 8 summarizes the final PRA estimates for internal and
external burdens associated with this requirement. We decreased the
total number of respondents to this item based upon updated analysis as
described above. Also, in response to a commenter,\745\ we adjusted our
estimates regarding the hours and wage rates to conduct evaluations and
the creation, review, and maintenance of written materials.\746\
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    \745\ See Guggenheim Comment Letter.
    \746\ See 2018 FOF Proposing Release, supra footnote 6, at
nn.373-377 and accompanying text.

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[GRAPHIC] [TIFF OMITTED] TR19NO20.008

5. Separate Accounts Funding Variable Insurance Contracts--
Certification
    Lastly, the rule will require that, with respect to a separate
account funding variable insurance contracts that invests in an
acquiring fund, the acquiring fund must obtain a certification from the
insurance company offering the separate account. The certification must
state that the insurance company has determined that the fees and
expenses borne by the separate account, acquiring fund, and acquired
fund, in the aggregate, are consistent with the standard set forth in
section 26(f)(2)(A) of the Act. The acquiring fund will be required to
keep a record of this certification.\747\ We estimate 191 funds will be
subject to this requirement.\748\
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    \747\ Rule 12d1-4(b)(2)(iii) and (c).
    \748\ See supra footnote 669.
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    Table 9 summarizes the final PRA estimates for internal and
external burdens associated with this requirement. We decreased the
total number of respondents to this item based upon updated analysis as
described above. Also, we increased the proposed internal hour burden
and time costs to account for likely attorney and compliance review of
the required certification.\749\
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    \749\ See 2018 FOF Proposing Release, supra footnote 6, at
nn.373-377 and accompanying text. The rule will not subject an
insurance company to a collection of information as section
26(f)(2)(A) of the Act already requires insurance companies to
collect this information.
[GRAPHIC] [TIFF OMITTED] TR19NO20.009

6. Rule 12d1-4 Total Estimated Burden
    As summarized in Table 10 below, we estimate that the total hour
burdens and time costs associated with rule 12d1-4, amortized over
three years, would result in an average aggregate annual burden of
578,084 hours and an average aggregate annual monetized time cost of
$191,773,875. We also estimate that, amortized over three years, there
would be external costs of $243,953,880 associated with this collection
of information. Therefore, each fund operating in accordance with the
rule will incur an average annual burden of approximately 35.55 hours,
at an average annual monetized time cost of approximately $11,794.94,
and an external cost of $15,004.24 to comply with it.
[GRAPHIC] [TIFF OMITTED] TR19NO20.011

C. Rule 0-2

    Rule 0-2 under the Act, entitled ``General Requirements of Papers
and Applications,'' prescribes general instructions for filing an
application seeking an order from the Commission under any provision of
the Act.\750\ Rule 12d1-4 will alleviate some of the burdens associated
with rule 0-2 because it will reduce the number of entities that
require exemptive relief in order to operate.
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    \750\ See Supporting Statement of Rule 0-2 under the Investment
Company Act of 1940, General Requirements of Paper Applications
(Mar. 3, 2020) (summarizing how applications are filed with the
Commission in accordance with the requirements of rule 0-2),
available at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201912-3235-002.
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    Table 11 summarizes the final PRA estimates for internal and
external burdens associated with this requirement. We reduced our
estimated burdens from what we proposed because of the intervening
adoption of rule 6c-11, which also reduced the number of entities that
require exemptive relief in order to operate.\751\
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    \751\ We proposed an approximate reduction of one-third from the
2016 approved burdens. See 2018 FOF Proposing Release, supra
footnote 6, at nn.381-386 and accompanying text. In the 2019 ETF
Adopting Release, we reduced the 2016 approved burdens by 30%. See
2019 ETF Adopting Release, supra footnote 25, at nn.691-692 and
accompanying text. We are reducing the estimates from the 2019 ETF
Adopting Release a further 30% as rule 12d1-4 will reduce a
different type of application than those addressed by rule 6c-11.
[GRAPHIC] [TIFF OMITTED] TR19NO20.012

D. Form N-CEN

    Form N-CEN is a structured form that requires registered funds to
provide census-type information to the Commission on an annual
basis.\752\ We are amending Form N-CEN to require management companies
and UITs to report whether they relied on section 12(d)(1)(G) or rule
12d1-4 during the reporting period.\753\
---------------------------------------------------------------------------

    \752\ See Reporting Modernization Adopting Release, supra
footnote 56.
    \753\ See supra Section III.1.
---------------------------------------------------------------------------

    Table 12 summarizes the final PRA estimates for internal and
external burdens associated with this requirement. We have adjusted
these estimates due to the intervening adoption of rule 6c-11, which
also added items to Form N-CEN.\754\
---------------------------------------------------------------------------

    \754\ We proposed an increase of 0.1 hours per response. See
2018 FOF Proposing Release, supra footnote 6, at nn.387-395 and
accompanying text. The 2019 ETF Adopting Release also added 0.1
hours, but per ETF, to the estimated burden. See 2019 ETF Adopting
Release, supra footnote 25, at nn.691-692 and accompanying text.

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

[GRAPHIC] [TIFF OMITTED] TR19NO20.013

BILLING CODE 8011-01-C

VII. Final Regulatory Flexibility Analysis

    This Final Regulatory Flexibility Analysis (``FRFA'') has been
prepared in accordance with section 4(a) of the Regulatory Flexibility
Act (``RFA'').\755\ It relates to final rule 12d1-4 and the amendments
to Form N-CEN under the Investment Company Act. In connection with the
new rule, the Commission is rescinding rule 12d1-2 under the Act and
certain exemptive relief that has been granted from sections
12(d)(1)(A), (B), (C), and (G) of the Act. Finally, the Commission is
adopting related amendments to rule 12d1-1 under the Act. An Initial
Regulatory Flexibility Analysis (``IRFA'') was prepared in accordance
with the RFA and is included in the 2018 FOF Proposing Release.\756\
---------------------------------------------------------------------------

    \755\ 5 U.S.C. 603(a).
    \756\ See 2018 FOF Proposing Release, at section VIII.
---------------------------------------------------------------------------

A. Need for and Objectives of the Rule and Form Amendments

    As described more fully above, rule 12d1-4 will permit registered
funds and BDCs that satisfy certain conditions to acquire shares of
another fund in excess of the limits of section 12(d)(1) of the Act
without obtaining an exemptive order from the Commission. The rule is
designed to streamline and enhance the regulatory framework applicable
to fund of funds arrangements. In addition, we are rescinding rule
12d1-2 under the Act and certain exemptive relief that has been granted
from sections 12(d)(1)(A), (B), (C), and (G) of the Act to create a
more consistent and efficient rules-based regime for the formation and
oversight of funds of funds. We also are amending rule 12d1-1 to allow
funds that rely on section 12(d)(1)(G) to invest in money market funds
that are not part of the same group of investment companies in reliance
on that rule. Finally, our amendments to Form N-CEN will allow the
Commission to better monitor funds' reliance on rule 12d1-4 and section
12(d)(1)(G), and will assist the Commission with its accounting,
auditing, and oversight functions.
    All of these requirements are discussed in detail above. The costs
and burdens of these requirements on small entities are discussed below
as well as above in our Economic Analysis and Paperwork Reduction Act
Analysis, which discusses the costs and burdens on all funds.

B. Significant Issues Raised by Public Comments

    In the 2018 FOF Proposing Release, we requested comment on every
aspect of the IRFA, including the number of small entities that would
be affected by the proposed rule and amendments, the existence or
nature of the potential impact of the proposals on small entities
discussed in the analysis and how to quantify the impact of the
proposed rule and amendments. We also requested comment on the broader
impact of the proposed rule and amendments on all relevant entities,
regardless of size.
    We proposed adopting a redemption limit that would prohibit an
acquiring fund that acquires more than 3% of an acquired fund's
outstanding shares from redeeming, submitting for redemption, or
tendering for repurchase more than 3% of an acquired fund's total
outstanding shares in any 30-day period.\757\ Among the comments
received on this topic, one commenter stated that the redemption limit
could discourage acquiring funds from gaining exposure to non-
traditional asset classes with more volatile in- and out-flows and
smaller asset bases, resulting in a less desirable mix of assets being
made available to investors.\758\ Commenters also stated that this
would negatively impact newly launched or small acquired mutual
funds.\759\ For example, these commenters noted that novel and emerging
fund strategies, which would

likely exist primarily in smaller funds, would not be as attractive to
an acquiring fund as they otherwise would be because of liquidity
concerns accompanying the redemption condition.\760\ Commenters noted
the potential that this provision would affect smaller funds
disproportionately since funds of funds would likely migrate out of
smaller funds into larger funds in order to dilute their position.\761\
Further, commenters noted the possible impact of this provision on
smaller funds achieving scalable asset sizes.\762\ Finally, some
commenters raised administrative and compliance challenges associated
with tracking the outstanding voting securities of numerous acquired
funds.\763\ As discussed in more detail above, we are not adopting the
proposed redemption limit.
---------------------------------------------------------------------------

    \757\ See supra Section II.C.2.
    \758\ Voya Comment Letter.
    \759\ See, e.g., ICI Comment Letter; Invesco Comment Letter; IDC
Comment Letter; Voya Comment Letter; Chamber of Commerce Comment
Letter; Guggenheim Comment Letter; Dimensional Comment Letter; Wells
Fargo Comment Letter; Capital Group Comment Letter; Schwab Comment
Letter; John Hancock Comment Letter; Fidelity Comment Letter;
Dechert Comment Letter; MFS Comment Letter; Ropes Comment Letter;
IAA Comment Letter; BlackRock Comment Letter; Nationwide Comment
Letter.
    \760\ See, e.g., Invesco Comment Letter; Chamber of Commerce
Comment Letter.
    \761\ Id.
    \762\ See, e.g., Nationwide Comment Letter.
    \763\ See, e.g., Fidelity Comment Letter; Ropes Comment Letter.
---------------------------------------------------------------------------

    Commenters also noted that codifying certain categories of existing
exemptive relief would benefit smaller and midsize fund complexes by
relieving them of the cost burden of obtaining an exemptive order.\764\
---------------------------------------------------------------------------

    \764\ See, e.g., MFDF Comment Letter.
---------------------------------------------------------------------------

    In addition to not adopting the proposed redemption limit, after
consideration of the comments we received on the proposed rule and
amendments, we are adopting the rule and amendments with several
modifications that are designed to reduce certain operational
challenges that commenters identified, while maintaining protections
for investors and providing useful disclosures regarding fund of funds
arrangements. Revisions to the estimates below also are based on
updated figures regarding the number of small entities impacted by the
rule and amendments and updated estimated wage rates.

C. Small Entities Subject to the Rule

    An investment company is a small entity if, together with other
investment companies in the same group of related investment companies,
it has net assets of $50 million or less as of the end of its most
recent fiscal year.\765\ Commission staff estimates that, as of
December 2019, there were 46 open-end funds (including 8 ETFs), 30
closed-end funds, 2 UITs, and 14 BDCs that would be considered small
entities that may be subject to rule 12d1-4.\766\ For the purposes of
this analysis, we estimate that, of those 92 total entities, 8 entities
(1 open-end fund, 5 closed-end funds, and 2 UITs) invest in other funds
and thus may be subject to the rule.\767\
---------------------------------------------------------------------------

    \765\ See rule 0-10(a) under the Investment Company Act.
    \766\ This estimate is derived an analysis of data obtained from
Morningstar Direct as well as data reported to the Commission for
the period ending December 31, 2019. There are currently no ETMFs or
face-amount certificate companies that would be considered small
entities. We believe that no BDCs that are small entities invest in
other funds outside the limits of 12(d)(1). See supra section V.B.1.
    \767\ Id.
---------------------------------------------------------------------------

D. Projected Board Reporting, Recordkeeping, and Other Compliance
Requirements

    We are adopting new rule 12d1-4 to streamline and enhance the
regulatory framework applicable to fund of funds arrangements, the
rescission of rule 12d1-2 and certain exemptive relief, and an
amendment to rule 12d1-1 to create a more consistent and efficient
rules-based regime for the formation and oversight of fund of funds
arrangements. We are also adopting amendments to Form N-CEN to allow
the Commission to better monitor funds' reliance on rule 12d1-4 and
section 12(d)(1)(G) and assist the Commission with its accounting,
auditing, and oversight functions.
    Rule 12d1-4 will permit registered funds and BDCs that satisfy
certain conditions to acquire shares of another fund in excess of the
limits of section 12(d)(1) of the Act without obtaining an exemptive
order from the Commission. These conditions include (1) adherence to
certain voting provisions, (2) for some funds, entering into a fund of
funds investment agreement, (3) for management companies, the adviser
making certain evaluations and findings that are reported to the fund's
board, (4) for UITs, a finding by the principal underwriter or
depositor, and (5) for separate accounts funding variable insurance
contracts, the acquiring fund obtaining a certification by the
insurance company offering the separate account.\768\
---------------------------------------------------------------------------

    \768\ We estimate that no separate accounts funding variable
insurance contracts would be treated as small entities for purposes
of this analysis. See also Updated Disclosure Requirements and
Summary Prospectus for Variable Annuity and Variable Life Insurance
Contracts, Investment Company Act Release No. 33814 (May 1, 2020)
[FR 24964 (May 1, 2020)] (noting that the Commission expects that
few, if any, separate accounts would be treated as small entities).
---------------------------------------------------------------------------

    To harmonize the overall regulatory structure in view of rule 12d1-
4, we are rescinding rule 12d1-2, which would eliminate the flexibility
of funds relying on section 12(d)(1)(G) to: (i) Acquire the securities
of other funds that are not part of the same group of investment
companies, subject to the limits in section 12(d)(1)(A) or 12(d)(1)(F);
and (ii) invest directly in stocks, bonds and other securities.
Similarly we are rescinding certain exemptive relief that has been
granted from sections 12(d)(1)(A), (B), (C), and (G) of the Act for the
same reasons. In addition, we are amending rule 12d1-1 to allow funds
relying on section 12(d)(1)(G) to invest in money market funds that are
not part of the same group of investment companies in reliance on that
rule. Finally, we are amending Form N-CEN to require management
companies and UITs to report whether they relied on section 12(d)(1)(G)
or rule 12d1-4 during the reporting period.
    New rule 12d1-4, the rescission of rule 12d1-2 and certain
exemptive relief that has been granted from sections 12(d)(1)(A), (B),
(C), and (G) of the Act, and the amendments to rule 12d1-1 and Form N-
CEN would change current reporting requirements for small entities that
choose to rely on the rule. Entities eligible to rely on rule 12d1-4
are required to comply with the requirements of the rule only if they
wish to rely on the rule's exemptions. Additionally, entities that are
management companies or UITs and are relying on rule 12d1-4 are
required to report this reliance on Form N-CEN. For purposes of this
analysis, Commission staff estimates, based on outreach conducted with
a variety of funds, that small fund groups will incur approximately the
same initial and ongoing costs as large fund groups. As discussed
above, we estimate that each entity that relies on rule 12d1-4 (and is
subject to rule 12d1-4's voting provision) would incur the following
annual time and cost burdens (with initial burdens amortized over the
initial three years): (a) 6 internal burden hours and $400 in external
costs to satisfy the new voting provisions related to mirror voting and
33 internal burden hours and $4,000 in external costs to satisfy the
new voting provisions related to pass-through voting; \769\ (b) 38
internal burden hours and $2,778 in external costs to satisfy the
requirement that acquiring fund enter into an agreement containing
certain provisions with the acquired fund effective for the duration of
the funds' reliance on the rule, if the acquiring fund and the acquired
fund do not share the same

investment adviser; \770\ (c) for management companies, 35 internal
burden hours and $35,220 in external costs initially,\771\ and in cases
where the acquired fund is a management company, 13 internal burden
hours and $0 in external costs per year on an on-going basis to satisfy
the considerations associated with their Fund Findings; \772\ and (d)
for UITs, 35 internal burden hours and $2,400 in external costs to
satisfy the proposed complex structure and aggregate fees
analysis.\773\ Furthermore, as discussed above, we estimate that each
entity that relies on the new rule would incur an additional annual
time burden of 0.1 hours to comply with the amendments to Form N-
CEN.\774\
---------------------------------------------------------------------------

    \769\ See supra Section VI.B.1. For purposes of this analysis,
we assume that all small entities will utilize mirror voting. See
also supra footnote 735 and footnotes 569 through 570 and
accompanying text (outlining updated voting analysis).
    \770\ See supra Section VI.B.2.
    \771\ See supra Section VI.B.3.
    \772\ Id.
    \773\ See supra Section VI.B.4.
    \774\ See supra Section VI.D.
---------------------------------------------------------------------------

    Therefore, in the aggregate, we estimate that small entities would
incur an annual internal burden of 570 additional hours and an annual
external cost burden of $100,664 to comply with the requirements of
rule 12d1-4. This estimate is based on the following calculations:
[GRAPHIC] [TIFF OMITTED] TR19NO20.010

Furthermore, in the aggregate, we estimate that small entities would
incur an annual burden of an additional 0.8 hours to comply with the
amendments to Form N-CEN.\775\
---------------------------------------------------------------------------

    \775\ This estimate is based on the following calculations: 0.1
hours x 8 small entities = 0.8 hours.
---------------------------------------------------------------------------

    We do not otherwise expect the proposal to generate significant
economic impacts on smaller entities that are disproportionate to the
general economic impacts, including compliance costs and burdens,
discussed in sections VI and VII above.

E. Agency Action To Minimize Effect on Small Entities

    The RFA directs the Commission to consider significant alternatives
that would accomplish our stated objectives, while minimizing any
significant economic impact on small entities. We considered the
following alternatives for small entities in relation to the
disclosure, findings, board reporting, and recordkeeping requirements:
(i) Exempting small entities from some or all of the requirements to
rely on rule 12d1-4, or establishing different disclosure or reporting
requirements, or different disclosure frequency, for small entities to
account for different levels of resources available to small entities;
(ii) clarifying, consolidating, or simplifying the compliance
requirements under rule 12d1-4 for small entities; and (iii) using
performance rather than design standards.
    In addition, as discussed above, we proposed a redemption
limitation applicable to fund of funds investments in an acquired fund
to address concerns that an acquiring fund could threaten large-scale
redemptions to unduly influence an acquired fund. In response to
concerns raised by comments received on this redemption limit,
including comments regarding the significant impact the proposed
requirement would have on small entities, we are not adopting the
redemption limit as part of rule 12d1-4.
    Further, as discussed above, any cost savings to prospective
acquiring and acquired funds derived from eliminating the need to apply
for an exemptive order likely will be more pronounced for smaller funds
because (i) the administrative cost of the exemptive order application
process likely does not vary with fund size, and thus may constitute a
higher percentage of a smaller fund's assets; and (ii) the same
exemptive order can be used by multiple funds within a fund complex,
and there may be fewer funds to benefit

from an exemptive order within smaller fund complexes.\776\
---------------------------------------------------------------------------

    \776\ See supra section V.C.1.ii (citing MFDF Comment Letter for
a similar argument).
---------------------------------------------------------------------------

    We do not believe that exempting or establishing different
requirements for any subset of funds, including funds that are small
entities, from rule 12d1-4, the amendments to rule 12d1-1 and Form N-
CEN, or the rescission of rule 12d1-2 would permit us to achieve our
stated objectives. Nor do we believe that clarifying, consolidating or
simplifying the various aspects of the final rule for small entities
would satisfy those objectives. In particular, we do not believe that
the interest of investors would be served by these alternatives. We
believe that all investors, including investors in entities that are
small entities, will benefit from the rule and form amendments. We
believe that this rulemaking strikes the right balance between allowing
funds to engage in fund of funds arrangements while protecting such
entities from the abuses that Congress sought to curtail in adopting
section 12(d)(1). We believe that the new requirements are vital to
that balance and important to all investors, irrespective of the size
of the entity. Existing fund of funds exemptive orders do not
distinguish between small entities and other funds. Finally, we
determined to use performance rather than design standards for all
funds, regardless of size, because we believe that providing funds with
the flexibility to determine how to implement the requirements of the
rule allows them the opportunity to tailor these obligations to the
facts and circumstances of the entities themselves.

VIII. Statutory Authority

    The Commission is adopting new rule 12d1-4 pursuant to the
authority set forth in sections 6(c), 12(d)(1)(G) and (J), 17(b) and
38(a) of the Investment Company Act [15 U.S.C. 80a-6(c), 80a-
12(d)(1)(G) and (J), 80a-17(b), and 80a-37(a)]. The Commission is
adopting amendments to rule 12d1-1 pursuant to the authority set forth
in sections 6(c), 12(d)(1)(J), and 38(a) of the Act [15 U.S.C. 80a-
6(c), 80a-12(d)(1)(J), 80a-37(a)]. The Commission is adopting an
amendment to Form N-CEN under the authority set forth sections 8(b),
30(a), and 38(a) of the Investment Company Act [15 U.S.C. 80a-8(b),
80a-29(a), and 80a-37(a)].

List of Subjects in 17 CFR Parts 270 and 274

    Investment companies, Reporting and recordkeeping requirements,
Securities.

Text of Rules and Form Amendments

    For the reasons set out in the preamble, we are amending Title 17,
Chapter II of the Code of Federal Regulations as follows:

PART 270--RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940

0
1. The authority citation for part 270 continues to read, in part, as
follows:

    Authority:  15 U.S.C. 80a-1 et seq., 80a-34(d), 80a-37, 80a-39,
and Pub. L. 111-203, sec. 939A, 124 Stat. 1376 (2010) unless
otherwise noted.
* * * * *

0
2. Amend section 270.12d1-1 by revising paragraph (a) to read as
follows:

Sec.  270.12d1-1   Exemptions for investments in money market funds.

    (a) Exemptions for acquisition of money market fund shares. If the
conditions of paragraph (b) of this section are satisfied,
notwithstanding sections 12(d)(1)(A), 12(d)(1)(B), 12(d)(1)(G), 17(a),
and 57 of the Act (15 U.S.C. 80a-12(d)(1)(A), 80a-12(d)(1)(B), 80a-
12(d)(1)(G), 80a-17(a), and 80a-56)) and Sec.  270.17d-1:
    (1) An investment company (acquiring fund) may purchase and redeem
shares issued by a money market fund; and
    (2) A money market fund, any principal underwriter thereof, and a
broker or a dealer may sell or otherwise dispose of shares issued by
the money market fund to any acquiring fund.
* * * * *

Sec.  270.12d1-2   [Removed and Reserved]

0
3. Remove and reserve section 270.12d1-2.

0
4. Section 270.12d1-4 is added to read as follows:

Sec.  270.12d1-4   Exemptions for investments in certain investment
companies.

    (a) Exemptions for acquisition and sale of acquired fund shares. If
the conditions of paragraph (b) of this section are satisfied,
notwithstanding sections 12(d)(1)(A), 12(d)(1)(B), 12(d)(1)(C), 17(a),
57(a)(1)-(2), and 57(d)(1)-(2) of the Act (15 U.S.C. 80a 12(d)(1)(A),
80a-12(d)(1)(C), 80a 17(a), 80a-56(a)(1)-(2), and 80a-56(d)(1)-(2)):
    (1) A registered investment company (other than a face-amount
certificate company) or business development company (an acquiring
fund) may purchase or otherwise acquire the securities issued by
another registered investment company (other than a face-amount
certificate company) or business development company (an acquired
fund);
    (2) An acquired fund, any principal underwriter thereof, and any
broker or dealer registered under the Securities Exchange Act of 1934
may sell or otherwise dispose of the securities issued by the acquired
fund to any acquiring fund and any acquired fund may redeem or
repurchase any securities issued by the acquired fund from any
acquiring fund; and
    (3) An acquiring fund that is an affiliated person of an exchange-
traded fund (or who is an affiliated person of such a fund) solely by
reason of the circumstances described in Sec.  270.6c-11(b)(3)(i) and
(ii), may deposit and receive the exchange-traded fund's baskets,
provided that the acquired exchange-traded fund is not otherwise an
affiliated person (or affiliated person of an affiliated person) of the
acquiring fund.
    (b) Conditions--(1) Control. (i) The acquiring fund and its
advisory group will not control (individually or in the aggregate) an
acquired fund;
    (ii) If the acquiring fund and its advisory group, in the
aggregate,
    (A) Hold more than 25% of the outstanding voting securities of an
acquired fund that is a registered open-end management investment
company or registered unit investment trust as a result of a decrease
in the outstanding voting securities of the acquired fund, or
    (B) Hold more than 10% of the outstanding voting securities of an
acquired fund that is a registered closed-end management investment
company or business development company, each of those holders will
vote its securities in the same proportion as the vote of all other
holders of such securities; provided, however, that in circumstances
where all holders of the outstanding voting securities of the acquired
fund are required by this section or otherwise under section 12(d)(1)
to vote securities of the acquired fund in the same proportion as the
vote of all other holders of such securities, the acquiring fund will
seek instructions from its security holders with regard to the voting
of all proxies with respect to such acquired fund securities and vote
such proxies only in accordance with such instructions; and
    (iii) The conditions in paragraphs (b)(1)(i) through (ii) of this
section do not apply if:
    (A) The acquiring fund is in the same group of investment companies
as an acquired fund; or
    (B) The acquiring fund's investment sub-adviser or any person
controlling, controlled by, or under common control with such
investment sub-adviser acts as an acquired fund's investment adviser or
depositor.

    (2) Findings and agreements. (i) Management companies.
    (A) If the acquiring fund is a management company, prior to the
initial acquisition of an acquired fund in excess of the limits in
section 12(d)(1)(A)(i) of the Act (15 U.S.C. 80a-12(d)(1)(A)(i)), the
acquiring fund's investment adviser must evaluate the complexity of the
structure and fees and expenses associated with the acquiring fund's
investment in the acquired fund, and find that the acquiring fund's
fees and expenses do not duplicate the fees and expenses of the
acquired fund;
    (B) If the acquired fund is a management company, prior to the
initial acquisition of an acquired fund in excess of the limits in
section 12(d)(1)(A)(i) of the Act (15 U.S.C. 80a-12(d)(1)(A)(i)), the
acquired fund's investment adviser must find that any undue influence
concerns associated with the acquiring fund's investment in the
acquired fund are reasonably addressed and, as part of this finding,
the investment adviser must consider at a minimum the following items:
    (1) The scale of contemplated investments by the acquiring fund and
any maximum investment limits;
    (2) The anticipated timing of redemption requests by the acquiring
fund;
    (3) Whether and under what circumstances the acquiring fund will
provide advance notification of investments and redemptions; and
    (4) The circumstances under which the acquired fund may elect to
satisfy redemption requests in kind rather than in cash and the terms
of any such redemptions in kind; and
    (C) The investment adviser to each acquiring or acquired management
company must report its evaluation, finding, and the basis for its
evaluations or findings required by paragraphs (b)(2)(i)(A) or (B) of
this section, as applicable, to the fund's board of directors, no later
than the next regularly scheduled board of directors meeting.
    (ii) Unit investment trusts. If the acquiring fund is a unit
investment trust (UIT) and the date of initial deposit of portfolio
securities into the UIT occurs after the effective date of this
section, the UIT's principal underwriter or depositor must evaluate the
complexity of the structure associated with the UIT's investment in
acquired funds and, on or before such date of initial deposit, find
that the UIT's fees and expenses do not duplicate the fees and expenses
of the acquired funds that the UIT holds or will hold at the date of
deposit.
    (iii) Separate accounts funding variable insurance contracts. With
respect to a separate account funding variable insurance contracts that
invests in an acquiring fund, the acquiring fund must obtain a
certification from the insurance company offering the separate account
that the insurance company has determined that the fees and expenses
borne by the separate account, acquiring fund, and acquired fund, in
the aggregate, are consistent with the standard set forth in section
26(f)(2)(A) of the Act (15 U.S.C. 80a-26(f)(2)(A)).
    (iv) Fund of funds investment agreement. Unless the acquiring
fund's investment adviser acts as the acquired fund's investment
adviser and such adviser is not acting as the sub-adviser to either
fund, the acquiring fund must enter into an agreement with the acquired
fund effective for the duration of the funds' reliance on this section,
which must include the following:
    (A) Any material terms regarding the acquiring fund's investment in
the acquired fund necessary to make the finding required under
paragraph (b)(2)(i) through (ii) of this section;
    (B) A termination provision whereby either the acquiring fund or
acquired fund may terminate the agreement subject to advance written
notice no longer than 60 days; and
    (C) A requirement that the acquired fund provide the acquiring fund
with information on the fees and expenses of the acquired fund
reasonably requested by the acquiring fund.
    (3) Complex fund structures. (i) No investment company may rely on
section 12(d)(1)(G) of the Act (15 U.S.C. 80a-12(d)(1)(G)) or this
section to purchase or otherwise acquire, in excess of the limits in
section 12(d)(1)(A) of the Act (15 U.S.C. 80a-12(d)(1)(A)), the
outstanding voting securities of an investment company (a second-tier
fund) that relies on this section to acquire the securities of an
acquired fund, unless the second-tier fund makes investments permitted
by paragraph (b)(3)(ii) of this section; and
    (ii) No acquired fund may purchase or otherwise acquire the
securities of an investment company or private fund if immediately
after such purchase or acquisition, the securities of investment
companies and private funds owned by the acquired fund have an
aggregate value in excess of 10 percent of the value of the total
assets of the acquired fund; provided, however, that the 10 percent
limitation of this paragraph shall not apply to investments by the
acquired fund in:
    (A) Reliance on section 12(d)(1)(E) of the Act (15 U.S.C. 80a-
12(d)(1)(E));
    (B) Reliance on Sec.  270.12d1-1;
    (C) A subsidiary that is wholly-owned and controlled by the
acquired fund;
    (D) Securities received as a dividend or as a result of a plan of
reorganization of a company; or
    (E) Securities of another investment company received pursuant to
exemptive relief from the Commission to engage in interfund borrowing
and lending transactions.
    (c) Recordkeeping. The acquiring and acquired funds relying upon
this section must maintain and preserve for a period of not less than
five years, the first two years in an easily accessible place, as
applicable:
    (1) A copy of each fund of funds investment agreement that is in
effect, or at any time within the past five years was in effect, and
any amendments thereto;
    (2) A written record of the evaluations and findings required by
paragraph (b)(2)(i) of this section, and the basis therefor within the
past five years;
    (3) A written record of the finding required by paragraph
(b)(2)(ii) of this section and the basis for such finding; and
    (4) The certification from each insurance company required by
paragraph (b)(2)(iii) of this section.
    (d) Definitions. For purposes of this section:
    Advisory group means either:
    (1) An acquiring fund's investment adviser or depositor, and any
person controlling, controlled by, or under common control with such
investment adviser or depositor; or
    (2) An acquiring fund's investment sub-adviser and any person
controlling, controlled by, or under common control with such
investment sub-adviser.
    Baskets has the same meaning as in 17 CFR 270.6c-11(a)(1).
    Exchange-traded fund means a fund or class, the shares of which are
listed and traded on a national securities exchange, and that has
formed and operates in reliance on Sec.  6c-11 or under an exemptive
order granted by the Commission.
    Group of investment companies means any two or more registered
investment companies or business development companies that hold
themselves out to investors as related companies for purposes of
investment and investor services.
    Private fund means an issuer that would be an investment company
under section 3(a) of the Act but for the exclusions from that
definition provided for in section 3(c)(1) or section 3(c)(7) of the
Act (15 U.S.C. 80a-3(c)(1) or 80a-3(c)(7)).

PART 274--FORMS PRESCRIBED UNDER THE INVESTMENT COMPANY ACT OF 1940

0
5. The general authority citation for part 274 continues to read as
follows:

    Authority:  15 U.S.C. 77f, 77g, 77h, 77j, 77s, 78c(b), 78l, 78m,
78n, 78o(d), 80a-8, 80a-24, 80a-26, 80a-29, and Pub. L. 111-203,
sec. 939A, 124 Stat. 1376 (2010), unless otherwise noted.
* * * * *

0
6. Amend Form N-CEN (referenced in Sec.  274.101), by:
0
a. In Part C, revising Item C.7. and adding paragraphs l. and m.; and
0
b. In Part F, adding Item F.18. and Item F.19.
    The revisions and additions read as follows:

    Note:  The text of Form N-CEN does not and the amendments will
not appear in the Code of Federal Regulations.

FORM N-CEN
ANNUAL REPORT FOR REGISTERED INVESTMENT COMPANIES
* * * * *
Part C. Additional Questions for Management Investment Companies
* * * * *
    Item C.7. Reliance on certain statutory exemption and rules. Did
the Fund rely on the following statutory exemption or any of the rules
under the Act during the reporting period? (check all that apply)
* * * * *
    l. Rule 12d1-4 (17 CFR 270.12d1-4): __
    m. Section 12(d)(1)(G) of the Act (15 U.S.C. 80a-12(d)(1)(G)): __
* * * * *
Part F. Additional Questions for Unit Investment Trusts
* * * * *
    Item F.18. Reliance on rule 12d1-4. Did the Registrant rely on rule
12d1-4 under the Act (17 CFR 270.12d1-2) during the reporting period?
[Y/N]
    Item F.19. Reliance on section 12(d)(1)(G). Did the Registrant rely
on the statutory exception in section 12(d)(1)(G) of the Act (15 U.S.C.
80a-12(d)(1)(G)) during the reporting period? [Y/N]
* * * * *

    By the Commission.

    Dated: October 7, 2020.
Vanessa A. Countryman
Secretary.
[FR Doc. 2020-23355 Filed 11-18-20; 8:45 am]
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[Federal Register: March 16, 2007 (Volume 72, Number 51)]
[Notices]
[Page 12602]
[DOCID:fr16mr07-44]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP07-32-001]

Gulf South Pipeline Company, LP; Notice of Amended Application

March 12, 2007.
    Take notice that on March 5, 2007, Gulf South Pipeline Company, LP
(Gulf South), 20 East Greenway Plaza, Houston, Texas 77046, filed in
Docket No. CP07-32-001, an amendment to its pending application
pursuant to section 7(c) of the Natural Gas Act (NGA) in which it seeks
authorization to site, construct, and operate facilities proposed in
Docket No. CP07-32-000 filed December 11, 2006. In the amended
application, Gulf South proposes to internally coat the pipe for the
entire length of the project, all as more fully set forth in the
application which is on file with the Commission and open to public
inspection. The Commission staff will determine if this amendment will
have an effect on the schedule for the environmental review of this
project. If necessary, a revised Notice of Schedule for Environmental
Review will be issued within 90 days of this Notice. The instant filing
may be also viewed on the Web at http://www.ferc.gov using the

``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. For
assistance, call<PHONE_NUMBER> or TTY,<PHONE_NUMBER>.
    Any questions regarding this application may be directed to J. Kyle
Stephens, Director of Certificates, 20 East Greenway Plaza, Houston,
Texas 77046 or by telephone at<PHONE_NUMBER> or telecopy to 713-544-
3540.
    There are two ways to become involved in the Commission's review of
this project. First, any person wishing to obtain legal status by
becoming a party to the proceedings for this project should, on or
before the below listed comment date, file with the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, a
motion to intervene in accordance with the requirements of the
Commission's Rules of Practice and Procedure (18 CFR 385.214 or
385.211) and the Regulations under the NGA (18 CFR 157.10). A person
obtaining party status will be placed on the service list maintained by
the Secretary of the Commission and will receive copies of all
documents filed by the applicant and by all other parties. A party must
submit 14 copies of filings made with the Commission and must mail a
copy to the applicant and to every other party in the proceeding. Only
parties to the proceeding can ask for court review of Commission orders
in the proceeding.
    However, a person does not have to intervene in order to have
comments considered. The second way to participate is by filing with
the Secretary of the Commission, as soon as possible, an original and
two copies of comments in support of or in opposition to this project.
The Commission will consider these comments in determining the
appropriate action to be taken, but the filing of a comment alone will
not serve to make the filer a party to the proceeding. The Commission's
rules require that persons filing comments in opposition to the project
provide copies of their protests only to the party or parties directly
involved in the protest.
    Persons who wish to comment only on the environmental review of
this project should submit an original and two copies of their comments
to the Secretary of the Commission. Environmental commenters will be
placed on the Commission's environmental mailing list, will receive
copies of the environmental documents, and will be notified of meetings
associated with the Commission's environmental review process.
Environmental commenters will not be required to serve copies of filed
documents on all other parties. However, the non-party commenters will
not receive copies of all documents filed by other parties or issued by
the Commission (except for the mailing of environmental documents
issued by the Commission) and will not have the right to seek court
review of the Commission's final order.
    Motions to intervene, protests and comments may be filed
electronically via the Internet in lieu of paper; see, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.
    Comment Date: April 2, 2007.

Philis Posey,
Acting Secretary.
[FR Doc. E7-4806 Filed 3-15-07; 8:45 am]

BILLING CODE 6717-01-P


Some were concerned that the proposed CAIR compliance date is later than many attainment dates and States may need section 126 petitions in order to get earlier upwind reductions in order to meet their attainment dates. Some questioned the legal basis for linking the two rules.

Several commenters expressed concern that EPA would be restricting the use of or weakening the section 126 provision. A number of commenters urged EPA not to prejudge any petition, but to evaluate each on its own merit. Some thought that any petitions submitted prior to designations or before States had had the opportunity to prepare SIPs would be premature and should be denied. Others suggested that CAIR might not solve all the transport problems and 94 Section IX 3/ 2/ 2005 DRAFT Do Not Quote or Cite that States would need to retain the section 126 tool to seek further reductions.

After issuing the CAIR proposal, EPA received, on March 19, 2004, a section 126 petition from North Carolina seeking reductions in upwind NOx and SO2 for purposes of reducing PM2.5 and 8 hour ozone levels in North Carolina. The petition relies in large part on the technical record for the proposed CAIR.

When we propose action on the North Carolina petition,

we will set forth our view of the interaction between section 110( a)( 2)( D) and section 126. In that proposal, we will take into consideration and respond to the section 126

related comments we received on the CAIR. The EPA will provide a comment period and opportunity for a public hearing on the specifics of that section 126 proposal,

including an opportunity to comment on our view of the interaction of the 2 statutory provisions.

E. Will Sources Subject to CAIR Also Be Subject To New Source Review?

The EPA did not propose any provisions in the CAIR related to new source review ( NSR). Nonetheless, we received some comments on the relationship between CAIR and the NSR provisions that may apply to emissions sources also 95 31See 40 CFR 51.165( a)( 1)( xxv) and 51.165( e), 40 CFR 51.166 ( b)( 31) and 51.166( v), and 40 CFR 51.21( b)( 32) and 52.21( z).

Section IX 3/ 2/ 2005 DRAFT Do Not Quote or Cite impacted by the CAIR. Many commenters indicated that if an EGU is part of an EPA administered regional cap and trade program for NOx and SO2, then that EGU should be exempted from NSR for the covered pollutants. The commenters cited Clear Skies legislation as containing provisions affecting NSR for covered sources. In this final rule EPA is not addressing or revising the provisions of NSR.

It should be noted that pollution control measures implemented by EGUs in compliance with the CAIR may be eligible for an exemption under the NSR pollution control project provision. 31 These provisions provide an exemption from major NSR for controls such as SCR for NOx control and wet scrubbers for SO2 control, provided that certain conditions identified in the provisions are met.


[Federal Register: August 29, 2008 (Volume 73, Number 169)]
[Notices]
[Page 50979]
[DOCID:fr29au08-88]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[FEMA-1784-DR]

Vermont; Major Disaster and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This is a notice of the Presidential declaration of a major
disaster for the State of Vermont (FEMA-1784-DR), dated August 15,
2008, and related determinations.

DATES: Effective Date: August 15, 2008.

FOR FURTHER INFORMATION CONTACT: Peggy Miller, Disaster Assistance
Directorate, Federal Emergency Management Agency, 500 C Street, SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter
dated August 15, 2008, the President declared a major disaster under
the authority of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121-5207 (the Stafford Act), as follows:

    I have determined that the damage in certain areas of the State
of Vermont resulting from severe storms, a tornado, and flooding on
July 18, 2008, is of sufficient severity and magnitude to warrant a
major disaster declaration under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42 U.S.C. 5121-5207 (the
Stafford Act). Therefore, I declare that such a major disaster
exists in the State of Vermont.
    In order to provide Federal assistance, you are hereby
authorized to allocate from funds available for these purposes such
amounts as you find necessary for Federal disaster assistance and
administrative expenses.
    You are authorized to provide Public Assistance in the
designated areas, Hazard Mitigation throughout the State, and any
other forms of assistance under the Stafford Act that you deem
appropriate. Consistent with the requirement that Federal assistance
be supplemental, any Federal funds provided under the Stafford Act
for Hazard Mitigation will be limited to 75 percent of the total
eligible costs. Federal funds provided under the Stafford Act for
Public Assistance also will be limited to 75 percent of the total
eligible costs, except for any particular projects that are eligible
for a higher Federal cost-sharing percentage under the FEMA Public
Assistance Pilot Program instituted pursuant to 6 U.S.C. 777. If
Other Needs Assistance under Section 408 of the Stafford Act is
later requested and warranted, Federal funding under that program
also will be limited to 75 percent of the total eligible costs.
    Further, you are authorized to make changes to this declaration
to the extent allowable under the Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, under
Executive Order 12148, as amended, Philip E. Parr, of FEMA is appointed
to act as the Federal Coordinating Officer for this declared disaster.
    The following areas of the State of Vermont have been designated as
adversely affected by this declared major disaster:

    Caledonia, Grand Isle, and Lamoille Counties for Public
Assistance.
    All counties within the State of Vermont are eligible to apply
for assistance under the Hazard Mitigation Grant Program.

(The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households in
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.)

R. David Paulison,
Administrator, Federal Emergency Management Agency.
[FR Doc. E8-20074 Filed 8-28-08; 8:45 am]

BILLING CODE 9110-10-P


[Federal Register Volume 81, Number 231 (Thursday, December 1, 2016)]
[Rules and Regulations]
[Pages 86570-86571]
[FR Doc No: 2016-28726]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2016-7417; Airspace Docket No. 16-AWA-4]
RIN 2120-AA66

Amendment of Class C Airspace; El Paso International Airport, TX

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends Class C airspace at El Paso International
Airport, El Paso, TX, by removing a cutout from the Class C airspace
area that excludes the airspace within a 2-mile radius of West Texas
Airport and the airspace beyond an 8-mile arc from the El Paso
International Airport beginning at the 115[deg] bearing from the
airport clockwise to the Rio Grande River. Additionally, this rule
removes West Texas Airport from the Class C airspace description as the
airport is closed, and amends the El Paso International Airport
geographic coordinates to coincide with the FAA's aeronautical
database. The FAA is taking this action to enable more efficient
operations at El Paso International Airport.

DATES: Effective date 0901 UTC, February 2, 2017. The Director of the
Federal Register approves this incorporation by reference action under
Title 1, Code of Federal Regulations, part 51, subject to the annual
revision of FAA Order 7400.11 and publication of conforming amendments.

ADDRESSES: FAA Order 7400.11A, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can
contact the Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11A at NARA, call<PHONE_NUMBER>, or go
to http://www.archives.gov/federal_register/code_of_federal-regulations/ibr_locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: Colby Abbott, Airspace Policy Group,
Office of Airspace Services, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it amends the El Paso, TX, Class C airspace area to
preserve the safe and efficient flow of air traffic in the El Paso, TX,
area.

History

    On August 17, 2016, the FAA published in the Federal Register a
notice of proposed rulemaking (NPRM) to modify the Class C airspace at
El Paso International Airport, El Paso, TX (81 FR 54752), Docket No.
FAA-2016-7417. Interested parties were invited to participate in this
rulemaking effort by submitting written comments on the proposal. One
comment was received supporting the FAA's proposed action.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.11A, Airspace Designations and
Reporting Points, dated August 3, 2016, and effective September 15,
2016. FAA Order 7400.11A is publicly available as listed in the
ADDRESSES section of this document. FAA Order 7400.11A lists Class A,
B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Rule

    The FAA is amending Title 14, Code of Federal Regulations (14 CFR)
part 71 by modifying the El Paso International Airport, El Paso, TX,
Class C airspace area. This action removes the cutout and reduced
perimeter boundary arc that excludes the airspace extending upward from
5,200 feet MSL to and including 8,000 feet MSL within a 2-mile radius
of the West Texas Airport, and the airspace beyond an 8-mile arc from
the El Paso International Airport beginning at the 115[deg] bearing
from the airport clockwise to the Rio Grande River. Since West Texas
Airport (renamed Horizon Airport in 2004) is permanently closed and the
property sold for non-aviation uses, the purpose for the exclusions no
longer exists. Thus, the FAA is removing the words ``. . . that
airspace beyond an 8-mile arc from the El Paso International Airport
beginning at the 115[deg] bearing from the airport clockwise to the Rio
Grande River, and that airspace within a 2-mile radius of the West
Texas Airport, and . . .'' from the regulatory text. The West Texas
Airport name and geographic coordinate references are also removed from
the Class C airspace description.
    Additionally, this action amends the exclusion language pertaining
to the Class C airspace extending upward from 5,200 feet MSL to and
including 8,000 feet MSL from ``. . . that airspace within Mexico, and
that airspace west of long 106[deg]27'02'' W.'' to ``. . . that
airspace west of long. 106[deg]27'02'' W., and that airspace within
Mexico.'' This change is editorial for format and clarity to
standardize the exclusion information associated with the Class C
airspace surface area and shelf.
    Lastly, this action updates the El Paso International Airport
geographic coordinates to reflect the current airport reference point
information in the

FAA's aeronautical database from ``lat. 31[deg]48'24'' N., long.
106[deg]22'40'' W.'' to ``lat. 31[deg]48'26'' N., long. 106[deg]22'35''
W.''
    Class C airspace areas are published in paragraph 4000 of FAA Order
7400.11A, dated August 3, 2016, and effective September 15, 2016, which
is incorporated by reference in 14 CFR 71.1. The Class C airspace area
modification in this document will be published subsequently in the
Order.

Regulatory Notices and Analyses

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

Environmental Review

    The FAA has determined that this action of modifying the El Paso
International Airport, El Paso, TX, Class C airspace area by removing a
cutout from the Class C airspace area that excludes the airspace within
a 2-mile radius of West Texas Airport (now closed) and the airspace
beyond an 8-mile arc from the El Paso International Airport beginning
at the 115[deg] bearing from the airport clockwise to the Rio Grande
River, removing the West Texas Airport and geographic coordinate
references from the Class C airspace description, and amending the El
Paso International Airport geographic coordinates to reflect the
current airport reference point information contained in the FAA's
aeronautical database qualifies for categorical exclusion under the
National Environmental Policy Act and its implementing regulations at
40 CFR part 1500, and in accordance with FAA Order 1050.1F.
Environmental Impacts: Policies and Procedures, Paragraph 5-6.5a, which
categorically excludes from further environmental review [R]ulemaking
actions that designate or modify classes of airspace areas, airways,
routes, and reporting points. This action is not expected to cause any
potentially significant environmental impacts. In accordance with FAA
Order 1050.1F, paragraph 5-2 regarding Extraordinary Circumstances,
this action has been reviewed for factors and circumstances in which a
normally categorically excluded action may have a significant
environmental impact requiring further analysis, and it is determined
that no extraordinary circumstances exist that warrant preparation of
an environmental assessment.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

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

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

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

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

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of the FAA Order
7400.11A, Airspace Designations and Reporting Points, dated August 3,
2016, and effective September 15, 2016, is amended as follows:

Paragraph 4000 Subpart C--Class C Airspace.

* * * * *

ASW TX C El Paso International Airport, TX [Amended]

El Paso International Airport, TX
    (Lat. 31[deg]48'26'' N., long. 106[deg]22'35'' W.)

    That airspace extending upward from the surface to and including
8,000 feet MSL within a 5-mile radius of the El Paso International
Airport, excluding that airspace west of long. 106[deg]27'02'' W.,
and that airspace within Mexico; and that airspace extending upward
from 5,200 feet MSL to and including 8,000 feet MSL within a 10-mile
radius of the El Paso International Airport, excluding that airspace
west of long. 106[deg]27'02'' W., and that airspace within Mexico.

    Issued in Washington, DC, on November 22, 2016.
Leslie M. Swann,
Acting Manager, Airspace Policy Group.
[FR Doc. 2016-28726 Filed 11-30-16; 8:45 am]
 BILLING CODE 4910-13-P