[Federal Register Volume 78, Number 187 (Thursday, September 26, 2013)]
[Notices]
[Pages 59394-59401]
[FR Doc No: 2013-23420]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70459; File No. SR-NASDAQ-2013-121]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change Relating to the Listing and
Trading of the Shares of the First Trust Low Beta Income Fund of First
Trust Exchange-Traded Fund VI

September 20, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 12, 2013, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in in Items I,
II, and III below, which Items have been prepared by Nasdaq. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    Nasdaq proposes to list and trade the shares of the First Trust Low
Beta Income ETF (the ``Fund'') of First Trust Exchange-Traded Fund VI
(the ``Trust'') under Nasdaq Rule 5735 (``Managed Fund Shares'').\3\
The shares of the Fund are collectively referred to herein as the
``Shares.''
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    \3\ The Commission approved Nasdaq Rule 5735 in Securities
Exchange Act Release No. 57962 (June 13, 2008) 73 FR 35175 (June 20,
2008) (SR-NASDAQ-2008-039). There are already multiple actively-
managed funds listed on the Exchange; see Securities Exchange Act
Release No. 66175 (February 29, 2012), 77 FR 13379 (March 6, 2012)
(SR-NASDAQ-2012-004) (order approving listing and trading of
WisdomTree Emerging Markets Corporate Bond Fund). Additionally, the
Commission has previously approved the listing and trading of a
number of actively-managed WisdomTree funds on NYSE Arca, Inc.
pursuant to Rule 8.600 of that exchange. See, e.g., Securities
Exchange Act Release No. 64643 (June 10, 2011), 76 FR 35062 (June
15, 2011) (SR-NYSEArca-2011-21) (order approving listing and trading
of WisdomTree Global Real Return Fund). The Exchange believes the
proposed rule change raises no significant issues not previously
addressed in those prior Commission orders.
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    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at Nasdaq's principal office, and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to list and trade the Shares of the Fund
under Nasdaq Rule 5735, which governs the listing and trading of
Managed Fund Shares \4\ on the Exchange. The Fund will be an actively-
managed exchange-traded fund (``ETF''). The Shares will be offered by
the Trust, which was established as a Massachusetts business trust on
June 4, 2012.\5\ The Trust is registered with the Commission as an
investment company and has filed a registration statement on Form N-1A
(``Registration Statement'') with the Commission.\6\ The Fund is a
series of the Trust.
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    \4\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (the ``1940 Act'') organized
as an open-end investment company or similar entity that invests in
a portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Index Fund Shares, listed
and traded on the Exchange under Nasdaq Rule 5705, seeks to provide
investment results that correspond generally to the price and yield
performance of a specific foreign or domestic stock index, fixed
income securities index or combination thereof.
    \5\ The Commission has issued an order, upon which the Trust may
rely, granting certain exemptive relief under the 1940 Act. See
Investment Company Act Release No. 28468 (October 27, 2008) (File
No. 812-13477).
    \6\ See Post-Effective Amendment No. 4 to Registration Statement
on Form N-1A for the Trust, dated January 16, 2013 (File Nos. 333-
182308 and 811-22717). The descriptions of the Fund and the Shares
contained herein are based, in part, on information in the
Registration Statement.
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    First Trust Advisors L.P. will be the investment adviser
(``Adviser'') to the

Fund. First Trust Portfolios L.P. (the ``Distributor'') will be the
principal underwriter and distributor of the Fund's Shares. Brown
Brothers Harriman & Co. (``BBH'') will act as the administrator,
accounting agent, custodian and transfer agent to the Fund.
    Paragraph (g) of Rule 5735 provides that if the investment adviser
to the investment company issuing Managed Fund Shares is affiliated
with a broker-dealer, such investment adviser shall erect a ``fire
wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio.\7\ In addition, paragraph
(g) further requires that personnel who make decisions on the open-end
fund's portfolio composition must be subject to procedures designed to
prevent the use and dissemination of material, non-public information
regarding the open-end fund's portfolio. Rule 5735(g) is similar to
Nasdaq Rule 5705(b)(5)(A)(i); however, paragraph (g) in connection with
the establishment of a ``fire wall'' between the investment adviser and
the broker-dealer reflects the applicable open-end fund's portfolio,
not an underlying benchmark index, as is the case with index-based
funds. The Adviser is not a broker-dealer, although it is affiliated
with the Distributor, a broker-dealer. The Adviser has implemented a
fire wall with respect to its broker-dealer affiliate regarding access
to information concerning the composition and/or changes to the
portfolio. In the event (a) the Adviser becomes newly affiliated with a
broker-dealer, or (b) any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with a broker-dealer, it will
implement a fire wall with respect to its relevant personnel and/or
such broker-dealer affiliate, as applicable, regarding access to
information concerning the composition and/or changes to the portfolio
and will be subject to procedures designed to prevent the use and
dissemination of material non-public information regarding such
portfolio. The Fund does not currently intend to use a sub-adviser.
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    \7\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and its related personnel are
subject to the provisions of Rule 204A-1 under the Advisers Act
relating to codes of ethics. This Rule requires investment advisers
to adopt a code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
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First Trust Low Beta Income ETF
Principal Investments
    The Fund's investment objective is to provide current income. The
Fund will pursue its objective by investing in large-cap U.S. exchange-
traded equity securities and by utilizing an ``option strategy''
consisting of buying U.S. exchange-traded put options on the Standard &
Poor's 500 Index (the ``Index'') and writing (selling) U.S. exchange-
traded covered call options on the Index.
    In pursuing its investment objective, under normal market
conditions,\8\ the Fund will invest primarily in large-cap U.S.
exchange-traded equity securities. The Fund will also employ an option
strategy in which it will write U.S. exchange-traded covered call
options on the Index in order to seek additional cash flow in the form
of premiums on the options. Those premiums may be distributed to
shareholders on a monthly basis or used to purchase U.S. exchange-
traded put options on the Index that seek to provide the Fund with
downside protection and which are expected to reduce the Fund's price
sensitivity to declining markets. The market value of the option
strategy may be up to 20% of the Fund's overall net asset value.
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    \8\ The term ``under normal market conditions'' as used herein
includes, but is not limited to, the absence of adverse market,
economic, political or other conditions, including extreme
volatility or trading halts in the securities markets or the
financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption or any similar intervening circumstance. In periods of
extreme market disturbance, the Fund may take temporary defensive
positions, by overweighting its portfolio in cash/cash-like
instruments; however, to the extent possible, the Adviser would
continue to seek to achieve the Fund's investment objective.
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    The equity securities in which the Fund will invest and the options
which the Fund will buy and write will be limited to U.S. exchange-
traded securities and options, respectively, that trade in markets that
are members of the Intermarket Surveillance Group (``ISG''), which
includes all U.S. national securities exchanges and certain foreign
exchanges, or are parties to a comprehensive surveillance sharing
agreement with the Exchange. A list of ISG members is available at
www.isgportal.org.
    The equity securities held by the Fund will be selected using a
mathematical optimization process which attempts to tilt the Fund's
common stock portfolio toward higher dividend paying stocks. The equity
securities held by the Fund may include non-U.S. securities that are
listed on a U.S. securities exchange in the form of American Depositary
Receipts (``ADRs'') and Global Depositary Receipts (``GDRs'')
(collectively ``Depositary Receipts''). The equity securities will be
periodically rebalanced.
    The option portion of the portfolio will generally consist of (i)
U.S. exchange-traded covered calls or covered call spreads on the Index
that are written by the Fund and (ii) U.S. exchange-traded puts on the
Index that are bought by the Fund. The call options written by the Fund
will typically be a laddered portfolio of one-week, one-month, two-
month and three-month call options written at-the-money to slightly
out-of-the-money. A call option will give the holder the right to buy
the Index at a predetermined strike price from the Fund. The notional
value of calls written (including calls and call spreads on the Index
and/or other indexes as described in Other Investments below) will be
generally between 25% and 75% of the overall Fund.
    The put positions held by the Fund will generally average two to
three months to expiration (calculated at the time of purchase) and
will consist of out-of-the-money Index put options. A put option will
give the Fund the right to sell the Index at a predetermined strike
price to the writer of the put. The notional value of the put portfolio
(including puts written on the Index and/or other indexes as described
in Other Investments below) will be generally between 10% and 75% of
the overall Fund.
Other Investments
    In addition to the option strategy described in Principal
Investments, the Fund may invest up to 10% of the market value of its
net assets in futures, options, options on futures, total return swaps,
credit default swaps \9\ and

forward contracts. The Fund may utilize such derivatives to enhance
return, to hedge some of the risks of its investments in securities, as
a substitute for a position in the underlying asset, to reduce
transaction costs, to maintain full market exposure (which means to
adjust the characteristics of its investments to more closely
approximate those of the markets in which it invests), to manage cash
flows or to preserve capital. In attempting to enhance returns and/or
hedge risks, the Fund may buy and write U.S. exchange-traded options on
single stocks included in the portfolio and/or on the Index and/or
other equity indexes. The Fund may also write covered call spreads on
the Index and/or other equity indexes.
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    \9\ To the extent practicable, the Fund will invest in swaps
cleared through the facilities of a centralized clearing house.
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    Under normal market conditions, the Fund may invest up to 10% of
its net assets in short-term debt securities and cash equivalents, or
it may hold cash. The percentage of the Fund invested in such holdings
will vary and will depend on several factors, including market
conditions. For temporary defensive purposes and during periods of high
cash inflows or outflows, the Fund may depart from its principal
investment strategies and invest part or all of its assets in short-
term debt securities or cash equivalents or it may hold cash. During
such periods, the Fund may not be able to achieve its investment
objective. The Fund may adopt a defensive strategy when the Adviser
believes securities in which the Fund normally invests have elevated
risks due to political or economic factors and in other extraordinary
circumstances.
    Short-term debt securities are securities from issuers having a
long-term debt rating of at least A by Standard & Poor's Ratings Group
(``S&P Ratings''), Moody's Investors Service, Inc. (``Moody's'') or
Fitch, Inc. (``Fitch'') and having a maturity of one year or less. The
use of temporary investments will not be a part of a principal
investment strategy of the Fund.
    Short-term debt securities are defined to include, without
limitation, the following: (1) U.S. government securities, including
bills, notes and bonds differing as to maturity and rates of interest,
which are either issued or guaranteed by the U.S. Treasury or by U.S.
government agencies or instrumentalities; (2) certificates of deposit
issued against funds deposited in a bank or savings and loan
association; (3) bankers' acceptances, which are short-term credit
instruments used to finance commercial transactions; (4) repurchase
agreements,\10\ which involve purchases of debt securities; (5) bank
time deposits, which are monies kept on deposit with banks or savings
and loan associations for a stated period of time at a fixed rate of
interest; and (6) commercial paper, which is short-term unsecured
promissory notes. The Fund may only invest in commercial paper rated A-
1 or higher by S&P Ratings, Prime-1 or higher by Moody's or F2 or
higher by Fitch.
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    \10\ According to the Registration Statement, the Fund intends
to enter into repurchase agreements only with financial institutions
and dealers believed by the Adviser to present minimal credit risks
in accordance with criteria approved by the Board of Trustees of the
Trust (``Trust Board''). The Adviser will review and monitor the
creditworthiness of such institutions. The Adviser will monitor the
value of the collateral at the time the transaction is entered into
and at all times during the term of the repurchase agreement.
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    The Fund intends to qualify each year as a regulated investment
company (``RIC'') under Subchapter M of the Internal Revenue Code of
1986, as amended.
    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment).
The Fund will monitor its portfolio liquidity on an ongoing basis to
determine whether, in light of current circumstances, an adequate level
of liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid securities. Illiquid securities include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance. The Fund may not invest 25%
or more of the value of its total assets in securities of issuers in
any one industry or group of industries. This restriction does not
apply to obligations issued or guaranteed by the U.S. government, its
agencies or instrumentalities, or securities of other investment
companies.\11\
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    \11\ See Form N-1A, Item 9. The Commission has taken the
position that a fund is concentrated if it invests more than 25% of
the value of its total assets in any one industry. See, e.g.,
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR
54241 (November 21, 1975).
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    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to enhance leverage.
The Shares
    The Fund will issue and redeem Shares only in Creation Units at the
net asset value (``NAV'') \12\ next determined after receipt of an
order on a continuous basis every day except weekends and specified
holidays. The NAV of the Fund will be determined once each business
day, normally as of the close of trading of the NYSE, generally, 4:00
p.m. Eastern Time. Creation Unit sizes will be 50,000 Shares per
Creation Unit. The Trust will issue and sell Shares of the Fund only in
Creation Units on a continuous basis through the Distributor, without a
sales load (but subject to transaction fees), at their NAV per Share
next determined after receipt of an order, on any business day, in
proper form pursuant to the terms of the Authorized Participant
agreement (as referred to below).
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    \12\ The NAV of the Fund's Shares generally will be calculated
once daily Monday through Friday as of the close of regular trading
on the New York Stock Exchange (``NYSE''), generally 4:00 p.m.
Eastern time (the ``NAV Calculation Time''). NAV per Share will be
calculated by dividing the Fund's net assets by the number of Fund
Shares outstanding. For more information regarding the valuation of
Fund investments in calculating the Fund's NAV, see Registration
Statement.
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    The consideration for purchase of a Creation Unit generally will
consist of either (i) the in-kind deposit of a designated portfolio of
securities (the ``Deposit Securities'') per each Creation Unit and the
Cash Component (defined below), computed as described below or (ii) the
cash value of all or a portion of the Deposit Securities (``Deposit
Cash'') and the ``Cash Component,'' computed as described below. The
Fund may, under certain circumstances, effect a portion of creations
and redemptions for cash, rather than in-kind securities, particularly
for the put and call options in which the Fund invests.
    When accepting purchases of Creation Units for cash, the Fund may
incur additional costs associated with the acquisition of Deposit
Securities that would otherwise be provided by an in-kind purchaser.
Together, the Deposit Securities or Deposit Cash, as applicable, and
the Cash Component will constitute the ``Fund Deposit,'' which
represents the minimum initial and subsequent investment amount for a
Creation Unit of the Fund. The ``Cash Component'' will be an amount
equal to the difference between the NAV of the Shares (per Creation
Unit) and the market value of the Deposit Securities or Deposit Cash,
as applicable. If the Cash Component is a positive number (i.e., the
NAV per Creation Unit exceeds the market value of the Deposit
Securities or Deposit Cash, as applicable), the Cash Component will be
such positive amount. If the Cash Component is a negative number (i.e.,
the NAV per Creation Unit is less than the market

value of the Deposit Securities or Deposit Cash, as applicable), the
Cash Component will be such negative amount and the creator will be
entitled to receive cash in an amount equal to the Cash Component. The
Cash Component will serve the function of compensating for any
difference between the NAV per Creation Unit and the market value of
the Deposit Securities or Deposit Cash, as applicable.
    To be eligible to place orders with respect to creations and
redemptions of Creation Units, an entity must be (i) a ``Participating
Party,'' i.e., a broker-dealer or other participant in the clearing
process through the Continuous Net Settlement System of the National
Securities Clearing Corporation (``NSCC'') or (ii) a Depository Trust
Company (``DTC'') Participant (a ``DTC Participant''). In addition,
each Participating Party or DTC Participant (each, an ``Authorized
Participant'') must execute an agreement that has been agreed to by the
Distributor and BBH with respect to purchases and redemptions of
Creation Units.
    BBH, through the NSCC, will make available on each business day,
immediately prior to the opening of business on the Exchange's Regular
Market Session (currently 9:30 a.m. Eastern time), the list of the
names and the required number of shares of each Deposit Security and/or
the required amount of Deposit Cash, as applicable, to be included in
the current Fund Deposit (based on information at the end of the
previous business day) for the Fund. Such Fund Deposit, subject to any
relevant adjustments, will be applicable in order to effect purchases
of Creation Units of the Fund until such time as the next announced
composition of the Deposit Securities and/or the required amount of
Deposit Cash, as applicable, is made available.
    Shares may be redeemed only in Creation Units at their NAV next
determined after receipt of a redemption request in proper form by the
Fund through BBH and only on a business day.
    With respect to the Fund, BBH, through the NSCC, will make
available immediately prior to the opening of business on the Exchange
(9:30 a.m. Eastern time) on each business day, the list of the names
and share quantities of the Fund's portfolio securities (``Fund
Securities'') and/or, if relevant, the required cash value thereof that
will be applicable (subject to possible amendment or correction) to
redemption requests received in proper form on that day. Fund
Securities received on redemption may not be identical to Deposit
Securities.
    Redemption proceeds for a Creation Unit will be paid either in kind
or in cash or a combination thereof, as determined by the Trust. With
respect to in kind redemptions of the Fund, redemption proceeds for a
Creation Unit will consist of Fund Securities as announced by BBH on
the business day of the request for redemption received in proper form
plus cash in an amount equal to the difference between the NAV of the
Shares being redeemed, as next determined after a receipt of a request
in proper form, and the value of the Fund Securities (the ``Cash
Redemption Amount''), less a fixed redemption transaction fee and any
applicable additional variable charge as set forth in the Registration
Statement. In the event that the Fund Securities have a value greater
than the NAV of the Shares, a compensating cash payment equal to the
differential will be required to be made by or through an Authorized
Participant by the redeeming shareholder. Notwithstanding the
foregoing, at the Trust's discretion, an Authorized Participant may
receive the corresponding cash value of the securities in lieu of one
or more Fund Securities.
    The creation/redemption order cut off time for the Fund is expected
to be 4:00 p.m. Eastern time for purchases of Shares. On days when the
Exchange closes earlier than normal and in the case of custom orders,
the Fund may require orders for Creation Units to be placed earlier in
the day.
Net Asset Value
    The NAV per Share for the Fund will be computed by dividing the
value of the net assets of the Fund (i.e., the value of its total
assets less total liabilities) by the total number of Shares
outstanding, rounded to the nearest cent. Expenses and fees, including
the management fees, will be accrued daily and taken into account for
purposes of determining NAV. The NAV of the Fund will be calculated by
BBH and determined at the close of the regular trading session on the
NYSE (ordinarily 4:00 p.m. Eastern time) on each day that such exchange
is open. In calculating the Fund's NAV per Share, investments will
generally be valued by using market valuations. A market valuation
generally means a valuation (i) obtained from an exchange, a pricing
service, or a major market maker (or dealer) or (ii) based on a price
quotation or other equivalent indication of value supplied by an
exchange, a pricing service, or a major market maker (or dealer).
Portfolio securities listed on any exchange other than the Exchange
will be valued at the last sale price on the business day as of which
such value is being determined. Securities listed on the Exchange will
be valued at the official closing price on the business day as of which
such value is being determined. If there has been no sale on such day,
or no official closing price in the case of securities traded on the
Exchange, the securities will be valued at the mean of the most recent
bid and ask prices on such day. Portfolio securities traded on more
than one securities exchange will be valued at the last sale price or
official closing price, as applicable, on the business day as of which
such value is being determined at the close of the exchange
representing the principal market for such securities.
    U.S. exchange-traded options and futures contracts will be valued
at the closing price in the market where such contracts are principally
traded. Credit default swaps will be valued using a pricing service or,
if the pricing service does not provide a value, the Adviser's Pricing
Committee will attempt to obtain one or more quotes provided by the
selling dealer or financial institution and will value the swaps
accordingly. Except as otherwise provided herein, portfolio instruments
traded in the over-the-counter market will be valued at their closing
bid prices.
    The Adviser may use various pricing services, or discontinue the
use of any pricing service, as approved by the Trust Board from time to
time. A price obtained from a pricing service based on such pricing
service's valuation matrix may be considered a market valuation. Any
assets or liabilities denominated in currencies other than the U.S.
dollar will be converted into U.S. dollars at the current market rates
on the date of valuation as quoted by one or more sources.
    In the event that current market valuations are not readily
available or such valuations do not reflect current market value, the
Trust's procedures require the Adviser's Pricing Committee to determine
a security's fair value if a market price is not readily available.\13\

In determining such value the Adviser's Pricing Committee may consider,
among other things, (i) price comparisons among multiple sources, (ii)
a review of corporate actions and news events, and (iii) a review of
relevant financial indicators. In these cases, the Fund's NAV may
reflect certain portfolio securities' fair values rather than their
market prices. Fair value pricing involves subjective judgments and it
is possible that the fair value determination for a security is
materially different than the value that could be realized upon the
sale of the security.
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    \13\ The Valuation Committee of the Trust Board will be
responsible for the oversight of the pricing procedures of the Fund
and the valuation of the Fund's portfolio. The Valuation Committee
has delegated day-to-day pricing responsibilities to the Adviser's
Pricing Committee, which will be composed of officers of the
Adviser. The Pricing Committee will be responsible for the valuation
and revaluation of any portfolio investments for which market
quotations or prices are not readily available. The Fund has
implemented procedures designed to prevent the use and dissemination
of material, non-public information regarding valuation and
revaluation of any portfolio investments.
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Availability of Information
    The Distributor's Web site (www.ftportfolios.com), which will be
publicly available prior to the public offering of Shares, will include
a form of the prospectus for the Fund that may be downloaded. The Web
site will include additional quantitative information updated on a
daily basis, including, for the Fund: (1) The prior business day's
reported NAV, mid-point of the bid/ask spread at the time of
calculation of such NAV (the ``Bid/Ask Price''),\14\ and a calculation
of the premium and discount of the Bid/Ask Price against the NAV; and
(2) 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. On each business day, before commencement of trading in
Shares in the Regular Market Session \15\ on the Exchange, the Fund
will disclose on its Web site the identities and quantities of the
portfolio of securities and other assets (the ``Disclosed Portfolio'')
held by the Fund that will form the basis for the Fund's calculation of
NAV at the end of the business day.\16\ On a daily basis, the Disclosed
Portfolio will include each portfolio security and other financial
instruments of the Fund with the following information on the Fund's
Web site: Ticker symbol (if applicable), name of security and financial
instrument, number of shares (if applicable) and dollar value of
securities and financial instruments held in the Fund, and percentage
weighting of the security and financial instrument in the Fund. The Web
site information will be publicly available at no charge.
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    \14\ The Bid/Ask Price of the Fund will be determined using the
midpoint of the highest bid and the lowest offer on the Exchange as
of the time of calculation of such Fund's NAV. The records relating
to Bid/Ask Prices will be retained by the Fund and its service
providers.
    \15\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m. Eastern time; (2) Regular Market Session from 9:30 a.m. to 4
p.m. or 4:15 p.m. Eastern time; and (3) Post-Market Session from 4
p.m. or 4:15 p.m. to 8 p.m. Eastern time).
    \16\ Under accounting procedures to be followed by the Fund,
trades made on the prior business day (``T'') will be booked and
reflected in NAV on the current business day (``T + 1'').
Notwithstanding the foregoing, portfolio trades that are executed
prior to the opening of the Exchange on any business day may be
booked and reflected in NAV on such business day. Accordingly, the
Fund 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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    In addition, for the Fund, an estimated value, defined in Rule
5735(c)(3) as the ``Intraday Indicative Value,'' that reflects an
estimated intraday value of the Fund's portfolio, will be disseminated.
Moreover, the Intraday Indicative Value, available on the NASDAQ OMX
Information LLC proprietary index data service,\17\ will be based upon
the current value for the components of the Disclosed Portfolio and
will be updated and widely disseminated and broadly displayed at least
every 15 seconds during the Regular Market Session. The Intraday
Indicative Value will be based on quotes and closing prices from the
securities' local market and may not reflect events that occur
subsequent to the local market's close. Premiums and discounts between
the Intraday Indicative Value and the market price may occur. This
should not be viewed as a ``real time'' update of the NAV per Share of
the Fund, which is calculated only once a day.
---------------------------------------------------------------------------

    \17\ Currently, the NASDAQ OMX Global Index Data Service
(``GIDS'') is the NASDAQ OMX global index data feed service,
offering real-time updates, daily summary messages, and access to
widely followed indexes and Intraday Indicative Values for ETFs.
GIDS provides investment professionals with the daily information
needed to track or trade NASDAQ OMX indexes, listed ETFs, or third-
party partner indexes and ETFs.
---------------------------------------------------------------------------

    The dissemination of the Intraday Indicative Value, together with
the Disclosed Portfolio, will allow investors to determine the value of
the underlying portfolio of the Fund on a daily basis and will provide
a close estimate of that value throughout the trading day.
    Intra-day, executable price quotations on the securities and other
assets held by the Fund will be available from major broker-dealer
firms or on the exchange on which they are traded, as applicable.
Intra-day price information will also be available through subscription
services, such as Bloomberg, Markit and Thomson Reuters, which can be
accessed by Authorized Participants and other investors.
    In addition, a basket composition file, which includes the security
names, amounts and share quantities, as applicable, required to be
delivered in exchange for the Fund's Shares, together with estimates
and actual cash components, will be publicly disseminated daily prior
to the opening of Nasdaq via NSCC. The basket will represent one
Creation Unit of the Fund.
    Investors will also be able to obtain the Fund's Statement of
Additional Information (``SAI''), the Fund's annual and semi-annual
reports (together, ``Shareholder Reports''), and its Form N-CSR and
Form N-SAR, filed twice a year. The Fund's SAI and Shareholder Reports
will be available free upon request from the Fund, and those documents
and the Form N-CSR and Form N-SAR may be viewed on-screen or downloaded
from the Commission's Web site at www.sec.gov. Information regarding
market price and volume of the Shares will be continually available on
a real-time basis throughout the day on brokers' computer screens and
other electronic services. Information regarding the previous day's
closing price and trading volume information for the Shares will be
published daily in the financial section of newspapers. Quotation and
last sale information for the Shares will be available via Nasdaq
proprietary quote and trade services, as well as in accordance with the
Unlisted Trading Privileges and the Consolidated Tape Association plans
for the Shares and any underlying exchange-traded products.
    Additional information regarding the Fund and the Shares, including
investment strategies, risks, creation and redemption procedures, fees,
Fund holdings disclosure policies, distributions and taxes is included
in the Registration Statement. All terms relating to the Fund that are
referred to, but not defined in, this proposed rule change are defined
in the Registration Statement.
Initial and Continued Listing.
    The Shares will be subject to Rule 5735, which sets forth the
initial and continued listing criteria applicable to Managed Fund
Shares. The Exchange represents that, for initial and/or continued
listing, the Fund must be in compliance with Rule 10A-3 \18\ under the
Act. A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange. The Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and

the Disclosed Portfolio will be made available to all market
participants at the same time.
---------------------------------------------------------------------------

    \18\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Trading Halts and Trading Pauses
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Fund. Nasdaq will halt or pause trading in
the Shares under the conditions specified in Nasdaq Rules 4120 and
4121, including the trading pauses under Nasdaq Rules 4120(a)(11) and
(12). Trading may be halted because of market conditions or for reasons
that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the securities and/or the financial instruments
constituting the Disclosed Portfolio of the Fund; or (2) whether other
unusual conditions or circumstances detrimental to the maintenance of a
fair and orderly market are present. Trading in the Shares also will be
subject to Rule 5735(d)(2)(D), which sets forth circumstances under
which Shares of the Fund may be halted.
Trading Rules
    Nasdaq deems the Shares to be equity securities, thus rendering
trading in the Shares subject to Nasdaq's existing rules governing the
trading of equity securities. Nasdaq will allow trading in the Shares
from 4:00 a.m. until 8:00 p.m. Eastern time. The Exchange has
appropriate rules to facilitate transactions in the Shares during all
trading sessions. As provided in Nasdaq Rule 5735(b)(3), the minimum
price variation for quoting and entry of orders in Managed Fund Shares
traded on the Exchange is $0.01.
Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by both Nasdaq and
also the Financial Industry Regulatory Authority (``FINRA'') on behalf
of the Exchange, which are designed to detect violations of Exchange
rules and applicable federal securities laws.\19\ The Exchange
represents that these procedures are adequate to properly monitor
Exchange trading of the Shares in all trading sessions and to deter and
detect violations of Exchange rules and applicable federal securities
laws.
---------------------------------------------------------------------------

    \19\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations.
    FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares, in the equity securities in which the
Fund will invest, and in the U.S. exchange-traded options which the
Fund will buy and write with other markets and other entities that are
members of the ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.\20\ FINRA may obtain
trading information regarding trading in the Shares and in such equity
securities and U.S. exchange-traded options from such markets and other
entities. In addition, the Exchange may obtain information regarding
trading in the Shares and in such equity securities and U.S. exchange-
traded options from markets and other entities that are members of the
ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. In addition, the Exchange also has a
general policy prohibiting the distribution of material, non-public
information by its employees.
---------------------------------------------------------------------------

    \20\ For a list of the current members of ISG, see
www.isgportal.org.
---------------------------------------------------------------------------

Information Circular
    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular will discuss the following: (1) The procedures for purchases
and redemptions of Shares in Creation Units (and that Shares are not
individually redeemable); (2) Nasdaq Rule 2111A, which imposes
suitability obligations on Nasdaq members with respect to recommending
transactions in the Shares to customers; (3) how information regarding
the Intraday Indicative Value is disseminated; (4) the risks involved
in trading the Shares during the Pre-Market and Post-Market Sessions
when an updated Intraday Indicative Value will not be calculated or
publicly disseminated; (5) the requirement that members deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; and (6) trading
information.
    In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Fund. Members purchasing Shares from the Fund for
resale to investors will deliver a prospectus to such investors. The
Information Circular will also discuss any exemptive, no-action and
interpretive relief granted by the Commission from any rules under the
Act.
    Additionally, the Information Circular will reference that the Fund
is subject to various fees and expenses described in the Registration
Statement. The Information Circular will also disclose the trading
hours of the Shares of the Fund and the applicable NAV Calculation Time
for the Shares. The Information Circular will disclose that information
about the Shares of the Fund will be publicly available on the
Distributor's Web site.
2. Statutory Basis
    Nasdaq believes that the proposal is consistent with Section 6(b)
of the Act \21\ in general and Section 6(b)(5) of the Act \22\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78f.
    \22\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in Nasdaq Rule 5735. The
Exchange believes that its surveillance procedures are adequate to
properly monitor the trading of the Shares on Nasdaq during all trading
sessions and to deter and detect violations of Exchange rules and the
applicable federal securities laws.
    The equity securities in which the Fund may invest and the options
which the Fund may buy and write will be limited to U.S. exchange-
traded securities and options, respectively, that trade in markets that
are members of the ISG, which includes all U.S. national securities
exchanges and certain foreign exchanges, or are parties to a
comprehensive surveillance sharing agreement with the Exchange. The
Exchange may obtain information via

ISG from other exchanges that are members of ISG or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement.
    Under normal circumstances, the Fund will invest primarily in
large-cap U.S. exchange-traded equity securities. The Fund will also
utilize an option strategy consisting of buying U.S. exchange-traded
put options on the Index and writing U.S. exchange-traded covered call
options on the Index. The market value of the option strategy may be up
to 20% of the Fund's overall net asset value. In addition to such
option strategy, the Fund may invest no more than 10% of the market
value of its net assets in futures, options, options on futures, total
return swaps, credit default swaps and forward contracts. In attempting
to enhance returns and/or hedge risks, the Fund may buy and write U.S.
exchange-traded options on single stocks included in the portfolio and/
or on the Index and/or other equity indexes. The Fund may also write
covered call spreads on the Index and/or other equity indexes.
    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment).
The Fund will monitor its portfolio liquidity on an ongoing basis to
determine whether, in light of current circumstances, an adequate level
of liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid securities. Illiquid securities include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.
    The Adviser is not a broker-dealer, but is affiliated with a
broker-dealer, and has implemented a ``fire wall'' with respect to its
broker-dealer affiliate regarding access to information concerning the
composition and/or changes to the Fund's portfolio. In addition,
paragraph (g) of Nasdaq Rule 5735 further requires that personnel who
make decisions on the open-end fund's portfolio composition must be
subject to procedures designed to prevent the use and dissemination of
material non-public information regarding the open-end fund's
portfolio. The Fund's investments will be consistent with the Fund's
investment objective and will not be used to enhance leverage.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information will be publicly available regarding the Fund and the
Shares, thereby promoting market transparency. The Intraday Indicative
Value, available on the NASDAQ OMX Information LLC proprietary index
data service, will be widely disseminated by one or more major market
data vendors and broadly displayed at least every 15 seconds during the
Regular Market Session. On each business day, before commencement of
trading in Shares in the Regular Market Session on the Exchange, the
Fund will disclose on the Distributor's Web site the Disclosed
Portfolio that will form the basis for the Fund's calculation of NAV at
the end of the business day. Information regarding market price and
trading volume of the Shares will be continually available on a real-
time basis throughout the day on brokers' computer screens and other
electronic services, and quotation and last sale information for the
Shares will also be available via Nasdaq proprietary quote and trade
services, as well as in accordance with the Unlisted Trading Privileges
and the Consolidated Tape Association plans for the Shares and any
underlying exchange-traded products. Intra-day, executable price
quotations of the securities and other assets held by the Fund will be
available from major broker-dealer firms or on the exchange on which
they are traded, if applicable. Intra-day price information will also
be available through subscription services, such as Bloomberg, Markit
and Thomson Reuters, which can be accessed by Authorized Participants
and other investors.
    The Distributor's Web site for the Fund will include a form of the
prospectus for the Fund and additional data relating to NAV and other
applicable quantitative information. Trading in Shares of the Fund will
be halted or paused under the conditions specified in Nasdaq Rules 4120
and 4121, including the trading pauses under Nasdaq Rules 4120(a)(11)
and (12). Trading may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Shares
inadvisable, and trading in the Shares will be subject to Nasdaq Rule
5735(d)(2)(D), which sets forth circumstances under which Shares of the
Fund may be halted. In addition, as noted above, investors will have
ready access to information regarding the Fund's holdings, the Intraday
Indicative Value, the Disclosed Portfolio, and quotation and last sale
information for the Shares.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an additional type of actively-managed exchange-traded product that
will enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, as noted above, investors
will have ready access to information regarding the Fund's holdings,
the Intraday Indicative Value, the Disclosed Portfolio, and quotation
and last sale information for the Shares.
    For the above reasons, Nasdaq believes the proposed rule change is
consistent with the requirements of Section 6(b)(5) of the Act.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposed rule change will facilitate the listing and trading of an
additional type of actively-managed exchange-traded fund that will
enhance competition among market participants, to the benefit of
investors and the marketplace.

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

    Written comments were neither solicited nor received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or

(ii) as to which the Exchange consents, the Commission shall: (a) By
order approve or disapprove such proposed rule change, or (b) institute
proceedings to determine whether the proposed rule change should be
disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2013-121 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2013-121. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2013-121, and should
be submitted on or before October 17, 2013.
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23420 Filed 9-25-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 61 (Thursday, March 29, 2018)]
[Rules and Regulations]
[Pages 13398-13401]
[FR Doc No: 2018-05017]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0711; Product Identifier 2017-NM-003-AD; Amendment
39-19227; AD 2018-06-07]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for certain
The Boeing Company Model 757-200, -200CB, and -300 series airplanes.
This AD was prompted by a report of fatigue cracking found in a certain
fuselage frame, which severed the inner chord and web. This AD requires
inspecting the fuselage frame for existing repairs, repetitive
inspections, and applicable repairs. We are issuing this AD to address
the unsafe condition on these products.

DATES: This AD is effective May 3, 2018.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of May 3, 2018.

ADDRESSES: For service information identified in this final rule,
contact Boeing Commercial Airplanes, Attention: Contractual & Data
Services (C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA
90740; telephone:<PHONE_NUMBER>; internet: https://www.myboeingfleet.com. You may view this service information at the
FAA, Transport Standards Branch, 2200 South 216th St., Des Moines, WA.
For information on the availability of this material at the FAA, call
206-231-3195. It is also available on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0711.

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-2017-
0711; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this final rule, the regulatory evaluation, any comments
received, and other information. The address for the Docket Office
(phone:<PHONE_NUMBER>) is Docket Management Facility, U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Chandra Ramdoss, Aerospace Engineer,
Airframe Section, FAA, Los Angeles ACO Branch, 3960 Paramount
Boulevard, Lakewood, CA 90712-4137; phone:<PHONE_NUMBER>; fax: 562-627-
5210; email: [email protected].

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to certain The Boeing Company
Model 757-200, -200CB, and -300 series airplanes. The NPRM published in
the Federal Register on July 27, 2017 (82 FR 34888). The NPRM was
prompted by a report of fatigue cracking found in a certain fuselage
frame, which severed the inner chord and web. The NPRM proposed to
require inspecting the fuselage frame for existing repairs, repetitive
inspections, and applicable repairs. We are issuing this AD to detect
and correct cracking of the fuselage frame at station (STA) 1640, which
could result in reduced structural integrity of the airplane.

Comments

    We gave the public the opportunity to participate in developing
this final rule. The following presents the comments received on the
NPRM and the FAA's response to each comment.

Support for the NPRM

    Aviation Partners Boeing concurs with the content of the NPRM.

Request To Clarify Certain Exceptions

    Boeing asked that we clarify the service information exceptions in
paragraph (h)(2) of the proposed AD by noting that Aviation Partners
Boeing (APB) Alert Service Bulletin AP757-53-001, Revision 1, dated
June 21, 2017, is subject to this exception only if applicable (if
winglets are installed on the airplane). Boeing also stated that
paragraph (h)(2) of the proposed AD should put the required compliance
time ``after the effective date of this AD'' in quotations to designate
the content being substituted for the quoted service information
compliance time statements.
    We agree with the commenter's request. We have separated the
exceptions for the referenced service information for clarification. We
have removed the reference to the APB Alert Service Bulletin AP757-53-
001, Revision 1, dated June 21, 2017, from paragraph (h)(2) of this AD.
We have also added paragraph (h)(3) to this AD to specify the exception
for the APB service bulletin. Paragraphs (h)(2) and (h)(3) of this AD
specify exceptions to the referenced service information instructions,
and are intended to be used to determine compliance, relative to the
effective date of this AD instead of the issue date of the service
information. We have also included the requested quotations in
paragraphs (h)(2) and (h)(3) of this AD.

Request To Clarify Inspection Location

    United Airlines (UAL) asked that the actions identified in Figures
5 and 6, Note (a), of Boeing Alert Service Bulletin 757-53A0108, dated
November 14, 2016, be clarified. UAL stated that while Figures 5 and 6
correctly depict the required inspection areas, the task associated
with circle action ``2'' for each figure specifies a high frequency
eddy current (HFEC) inspection, which cannot be done around the
fasteners common to the inner chord strap. UAL asked that this
discrepancy be addressed in the AD in order to avoid the need for
approval of requests for an alternative method of compliance (AMOC).
    We agree with the commenter's request, for the reason provided. We
have added paragraph (h)(4) to the exceptions in this AD to clarify
that an HFEC inspection of the two fasteners located below the lower
edge of the intercostal strap at the locations specified in Figures 5
and 6, Note (a), of Boeing Alert Service Bulletin 757-53A0108, dated
November 14, 2016, is not required by this AD.

Request To Clarify Compliance Timeframe

    Delta Airlines (DAL) asked that we clarify the language used in
paragraph (h)(2) of the proposed AD. DAL stated

that the phrase ``after the original issue of this service bulletin''
should be clarified by inserting the word ``date'' after ``issue'' to
match the compliance time specified in paragraph 1.E., ``Compliance''
of Boeing Alert Service Bulletin 757-53A0108, dated November 14, 2016.
    We agree with the commenter's request to include the word ``date''
in the phrase ``after the original issue of this service bulletin'' as
corrected in paragraph (h)(2) of this AD, because it was inadvertently
omitted in the proposed AD. The same language is included in paragraph
(h)(3) of this AD.

Request To Clarify Compliance Determination

    DAL asked that a new paragraph be added to paragraph (h) of this AD
to clarify using the phrase ``at the original issue date of this
service bulletin'' to determine airplane configuration, and to provide
credit for inspections done before the effective date of the AD. DAL
added that these changes would avoid the need for operators to request
AMOCs.
    We agree to clarify. We have revised paragraph (h)(2) of this AD
and included similar language in paragraph (h)(3) of this AD to clarify
that the exceptions apply to both compliance times and airplane
configurations. In addition, paragraph (f) of this AD requires
compliance with this AD within the compliance times specified, unless
the actions have already been done. Therefore, paragraph (f) of this AD
already gives credit for inspections done before the effective date of
this AD.

Request To Clarify Airplane Groups

    FedEx Express (FedEx) and VT Mobile Aerospace Engineering (VT MAE)
asked that we revise the proposed AD to specify the inspections,
methods, and compliance times given in Boeing Alert Service Bulletin
757-53A0108, dated November 14, 2016, but under a different group
designation for the FedEx fleet of Model 757-200 airplanes. The
commenters stated that these airplanes were converted by VT MAE
supplemental type certificate (STC) ST03562AT to a configuration
similar to that of Model 757-200SF airplanes (identified as Groups 2
and 5), and that FedEx's fleet is therefore no longer configured as
passenger airplanes. FedEx stated that Boeing Alert Service Bulletin
757-53A0108, dated November 14, 2016, identifies the FedEx Model 757-
200 fleet as Groups 1 and 4, and that the inspection areas defined for
these groups have been modified in accordance with the STC and are no
longer applicable.
    We agree with the commenters' requests. The VT MAE STC modification
to the STA 1640 frame is identical to the modification of Boeing 757-
200 special freighter airplanes; the inspections specified in Boeing
Alert Service Bulletin 757-53A0108, dated November 14, 2016, as listed
under different airplane groups should be used for the FedEx fleet. We
have added paragraph (g)(3) to this AD to clarify the requirements for
those airplanes.

Request To Add Affected AD

    Boeing asserted that AD 2006-11-11, Amendment 39-14615 (71 FR
30278; May 26, 2006) (``AD 2006-11-11''), would affect the actions of
the proposed AD and asked that we add that AD to paragraph (b) of this
AD (``Affected ADs''). Boeing added that Boeing Alert Service Bulletin
757-53A0108, dated November 14, 2016, was approved as an AMOC to AD
2006-11-11 for the inspections of the inboard chord and inboard chord
strap in the area around stringer 14, which is common to part of 53-60-
15 listed in Section 9 of the Maintenance Planning Data (MPD) document.
    We acknowledge the commenter's rationale for including AD 2006-11-
11 in paragraph (b) of this AD. However, paragraph (b), ``Affected
ADs,'' is intended to include other affected ADs, but not all related
ADs. It is primarily used to reference superseded ADs and other ADs
that are terminated, in whole or in part, by requirements in a given
AD. Therefore, we have made no change to this AD in this regard.

Request To Change Corrective Actions

    FedEx asked that repetitive inspections of a repair done for a
crack finding be required only based on the original equipment
manufacturer/STC holder/FAA requirements for that repair. FedEx also
asked that the repetitive inspections be terminated for the portion of
the inspection area covered by the repair.
    We do not agree with the commenter's requests. This AD requires
repairing cracks using a method approved by the FAA or Boeing
Organization Designation Authorization (ODA), and any relief or
required follow-on actions will be included in those approved
instructions. Therefore, we have made no change to this AD in this
regard.

Conclusion

    We reviewed the relevant data, considered the comments received,
and determined that air safety and the public interest require adopting
this final rule with the changes described previously and minor
editorial changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.
    We also determined that these changes will not increase the
economic burden on any operator or increase the scope of this final
rule.

Related Service Information Under 1 CFR Part 51

    We reviewed Boeing Alert Service Bulletin 757-53A0108, dated
November 14, 2016. This service information describes procedures for an
inspection of the fuselage frame for existing frame repairs, repetitive
high frequency eddy current and low frequency eddy current inspections
for cracking in specified areas with no existing frame repair, and
repair of any cracking.
    We also reviewed APB Alert Service Bulletin AP757-53-001, Revision
1, dated June 21, 2017. This service information provides compliance
times for accomplishing the procedures identified in Boeing Alert
Service Bulletin 757-53A0108, dated November 14, 2016, for airplanes on
which APB blended or scimitar blended winglets are installed.
    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.

Costs of Compliance

    We estimate that this AD affects 606 airplanes of U.S. registry. We
estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                              Cost per          Cost on U.S.
              Action                      Labor cost         Parts cost        product           operators
----------------------------------------------------------------------------------------------------------------
Inspection for existing frame       1 work-hour x $85 per              $0             $85  $51,510.
 repairs.                            hour = $85.
Repetitive high and low frequency   48 work-hours x $85                 0           4,080  $2,439,840 per
 inspections for Groups 1 through    per hour = $4,080                                      inspection cycle.
 3 airplanes (598 airplanes).        per inspection cycle.
Repetitive high and low frequency   26 work-hours x $85                 0           2,210  $17,680 per
 inspections for Groups 4 and 5      per hour = $2,210                                      inspection cycle.
 airplanes (8 airplanes).            per inspection cycle.
----------------------------------------------------------------------------------------------------------------

    We have received no definitive data that enables us to provide cost
estimates for the on-condition repair specified in this AD.

Authority for This Rulemaking

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

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will 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 that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979),
    (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.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 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):

2018-06-07 The Boeing Company: Amendment 39-19227; Docket No. FAA-
2017-0711; Product Identifier 2017-NM-003-AD.

(a) Effective Date

    This AD is effective May 3, 2018.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to The Boeing Company Model 757-200, -200CB, and
-300 series airplanes, certificated in any category, as identified
in Boeing Alert Service Bulletin 757-53A0108, dated November 14,
2016.

(d) Subject

    Air Transport Association (ATA) of America Code 53; Fuselage.

(e) Unsafe Condition

    This AD was prompted by a report of fatigue cracking found in
the fuselage frame at station (STA) 1640, which severed the inner
chord and web. We are issuing this AD to detect and correct cracking
of the fuselage frame at STA 1640, which could result in reduced
structural integrity of the airplane.

(f) Compliance

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

(g) Actions Required for Compliance

    (1) For all airplanes except those identified in paragraphs
(g)(2) and (g)(3) of this AD: Do all applicable actions identified
as ``RC'' (required for compliance) in, and in accordance with, the
Accomplishment Instructions of Boeing Alert Service Bulletin 757-
53A0108, dated November 14, 2016; except as provided by paragraphs
(h)(1) and (h)(4) of this AD. Do the actions at the applicable times
specified in paragraph 1.E., ``Compliance,'' of Boeing Alert Service
Bulletin 757-53A0108, dated November 14, 2016, except as provided by
paragraph (h)(2) of this AD.
    (2) For airplanes on which Aviation Partners Boeing (APB) Alert
Service Bulletin AP757-53-001, Revision 1, dated June 21, 2017,
blended or scimitar blended winglets are installed in accordance
with Supplemental Type Certificate ST01518SE: Do all applicable
actions identified as ``RC'' (required for compliance) in, and in
accordance with, the Accomplishment Instructions of APB Alert
Service Bulletin AP757-53-001, Revision 1, dated June 21, 2017; and
Boeing Alert Service Bulletin 757-53A0108, dated November 14, 2016;
except as provided by paragraphs (h)(1) and (h)(4) of this AD. Do
the actions at the applicable times specified in paragraph 1.E.,
``Compliance,'' of APB Alert Service Bulletin AP757-53-001, Revision
1, dated June 21, 2017, except as provided by paragraph (h)(3) of
this AD.
    (3) For airplanes that have been converted from passenger to
freighter configuration in accordance with VT Mobile Aerospace
Engineering (VT MAE) Supplemental Type Certificate ST03562AT: Do all
applicable actions identified as ``RC'' in, and in accordance with,
the Accomplishment Instructions of Boeing Alert Service Bulletin
757-53A0108, dated November 14, 2016; except as provided by
paragraphs (h)(1) and (h)(4) of this AD. Do the actions at the

applicable times specified in paragraph 1.E., ``Compliance,'' of
Boeing Alert Service Bulletin 757-53A0108, dated November 14, 2016,
except as provided by paragraph (h)(2) of this AD. Where Boeing
Alert Service Bulletin 757-53A0108, dated November 14, 2016, refers
to Group 1 airplanes, the tasks identified under Group 2 airplanes
must be done instead; where Boeing Alert Service Bulletin 757-
53A0108, dated November 14, 2016, refers to Group 4 airplanes, the
tasks identified under Group 5 airplanes must be done instead.

(h) Exceptions to Service Information Specifications

    (1) Where Boeing Alert Service Bulletin 757-53A0108, dated
November 14, 2016, specifies contacting Boeing for instructions, and
specifies that action as RC: This AD requires using a method
approved in accordance with the procedures specified in paragraph
(i) of this AD.
    (2) For purposes of determining compliance with the requirements
of this AD: Where Boeing Alert Service Bulletin 757-53A0108, dated
November 14, 2016, uses the phrase ``the original issue date of this
service bulletin,'' this AD requires using ``the effective date of
this AD.''
    (3) For purposes of determining compliance with the requirements
of this AD: Where APB Alert Service Bulletin AP757-53-001, Revision
1, dated June 21, 2017, uses the phrase ``the original issue date of
this service bulletin,'' this AD requires using ``the effective date
of this AD.''
    (4) Where Figures 5 and 6, Step 2, Note (a), of Boeing Alert
Service Bulletin 757-53A0108, dated November 14, 2016, specify a
high frequency eddy current (HFEC) inspection for any crack in the
fuselage frame inner chord forward bend radius and around the
fasteners, between the two fasteners above and below the edges of
the intercostal strap, this AD does not require inspecting around
the two fasteners located below the lower edge of the intercostal
strap at stringer 13.

 (i) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Los Angeles ACO Branch, FAA, has the authority
to approve AMOCs for this AD, if requested using the procedures
found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your
request to your principal inspector or local Flight Standards
District Office, as appropriate. If sending information directly to
the manager of the certification office, send it to the attention of
the person identified in paragraph (j) of this AD. Information may
be emailed to [email protected].
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair, modification, or alteration required by this AD
if it is approved by the Boeing Commercial Airplanes Organization
Designation Authorization (ODA) that has been authorized by the
Manager, Los Angeles ACO Branch, to make those findings. To be
approved, the repair method, modification deviation, or alteration
deviation must meet the certification basis of the airplane, and the
approval must specifically refer to this AD.
    (4) Except as required by paragraph (h)(1) of this AD: For
service information that contains steps that are labeled as RC, the
provisions of paragraphs (i)(4)(i) and (i)(4)(ii) of this AD apply.
    (i) The steps labeled as RC, including substeps under an RC step
and any figures identified in an RC step, must be done to comply
with the AD. If a step or substep is labeled ``RC Exempt,'' then the
RC requirement is removed from that step or substep. An AMOC is
required for any deviations to RC steps, including substeps and
identified figures.
    (ii) Steps not labeled as RC may be deviated from using accepted
methods in accordance with the operator's maintenance or inspection
program without obtaining approval of an AMOC, provided the RC
steps, including substeps and identified figures, can still be done
as specified, and the airplane can be put back in an airworthy
condition.

(j) Related Information

    For more information about this AD, contact Chandra Ramdoss,
Aerospace Engineer, Airframe Section, FAA, Los Angeles ACO Branch,
3960 Paramount Boulevard, Lakewood, CA 90712-4137; phone: 562-627-
5239; fax:<PHONE_NUMBER>; email: [email protected].

(k) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Aviation Partners Boeing (APB) Alert Service Bulletin AP757-
53-001, Revision 1, dated June 21, 2017.
    (ii) Boeing Alert Service Bulletin 757-53A0108, dated November
14, 2016.
    (3) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Contractual & Data Services
(C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740;
telephone:<PHONE_NUMBER>; internet: https://www.myboeingfleet.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call
206-231-3195.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on March 2, 2018.
Michael Kaszycki,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2018-05017 Filed 3-28-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 65 (Friday, April 3, 2020)]
[Notices]
[Page 18957]
[FR Doc No: 2020-06995]

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ENVIRONMENTAL PROTECTION AGENCY

[ER-FRL-9050-2]

Environmental Impact Statements; Notice of Availability

    Responsible Agency: Office of Federal Activities, General
Information<PHONE_NUMBER> or https://www.epa.gov/nepa.

Weekly receipt of Environmental Impact Statements (EIS)
Filed March 23, 2020, 10 a.m. EST Through March 30, 2020, 10 a.m. EST
Pursuant to 40 CFR 1506.9.
    Section 309(a) of the Clean Air Act requires that EPA make public
its comments on EISs issued by other Federal agencies. EPA's comment
letters on EISs are available at: https://cdxnodengn.epa.gov/cdx-enepa-public/action/eis/search.

EIS No. 20200075, Final, Caltrans, CA, North County Corridor New State
Route 108 Project and Route Adoption, Review Period Ends: 05/04/2020,
Contact: Jennifer Lugo<PHONE_NUMBER>.
EIS No. 20200076, Draft, BLM, PRO, Draft Programmatic Environmental
Impact Statement for Fuels Reduction and Rangeland Restoration in the
Great Basin, Comment Period Ends: 06/02/2020, Contact: Ammon Wilhelm
208-373-3824.
EIS No. 20200077, Draft, NNSA, SC, Plutonium Pit Production at the
Savannah River Site in South Carolina, Comment Period Ends: 05/18/2020,
Contact: Jennifer Nelson<PHONE_NUMBER>.
EIS No. 20200078, Final, BLM, ID, Tri-State Fuel Breaks Project, Review
Period Ends: 05/04/2020, Contact: Lance Okeson<PHONE_NUMBER>.

    Dated: March 30, 2020.
Cindy S. Barger,
Director, NEPA Compliance Division, Office of Federal Activities.
[FR Doc. 2020-06995 Filed 4-2-20; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 138 (Tuesday, July 19, 2016)]
[Notices]
[Page 46920]
[FR Doc No: 2016-17010]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 8221-094]

Alaska Energy Authority; Notice of Availability of Final
Environmental Assessment

    In accordance with the National Environmental Policy Act of 1969
and the Federal Energy Regulatory Commission's (Commission or FERC's)
regulations, 18 Code of Federal Regulations (CFR) Part 380 (Order No.
486, 52 Federal Register [FR] 47897), the Office of Energy Projects has
reviewed Alaska Energy Authority's application for a non-capacity
amendment to the license for the Bradley Lake Hydroelectric Project
(FERC Project No. 8221), located on the south shore and near the head
of Kachemak Bay, 22.5 miles east, northeast of the city of Homer, Kenai
Peninsula Borough, Alaska. The project currently occupies a total of
5,498 acres of federal land administered by the Bureau of Land
Management.
    Staff prepared a final environmental assessment (EA), which
analyzes the potential environmental effects of constructing and
operating a new diversion on the West Fork of Upper Battle Creek that
would divert water to Bradley Lake and thereby increase generation at
the project. The final EA concludes that authorizing the amendment,
with appropriate environmental protective measures, would not
constitute a major federal action that would significantly affect the
quality of the human environment.
    A copy of the final EA is available for review at the Commission in
the Public Reference Room or may be viewed on the Commission's Web site
at 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, contact FERC Online Support at
<EMAIL_ADDRESS>or toll-free at 1-866-208-3676, or for TTY,
202-502-8659.
    You may also register online at www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    For further information, contact Steven Sachs by telephone at 202-
502-8666 or by email at<EMAIL_ADDRESS>
    Dated: July 13, 2016.
Kimberly D. Bose,
 Secretary.
[FR Doc. 2016-17010 Filed 7-18-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register: August 11, 2010 (Volume 75, Number 154)]
[Rules and Regulations]
[Page 48553-48555]
[DOCID:fr11au10-6]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 376

[Docket No. RM10-28-000; Order No. 738]

Supplement to Commission Procedures During Periods of Emergency
Operations Requiring Activation of Continuity of Operations Plan

Issued August 5, 2010.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Final rule.

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

SUMMARY: In this rule the Commission supplements the procedures
previously established with regard to filing and other requirements if
the Commission is required to implement its Continuity of Operations
Plan in response to an emergency situation that disrupts communications
to or from the Commission's headquarters or which otherwise impairs
headquarters operations. The rule temporarily tolls for purposes of
further consideration the time period for Commission action required
for relief from, or reinstatement of, an electric utility's mandatory
purchase obligation under the Public Utility Regulatory Policies Act of
1978.

DATES: Effective Date: The rule will become effective August 11, 2010.

FOR FURTHER INFORMATION CONTACT:

Rachel E. Bryant, Office of the General Counsel, Federal Energy
Regulatory Commission, Room 101-32, 888 First St., NE., Washington, DC
20426,<PHONE_NUMBER>.

Lawrence R. Greenfield, Office of the General Counsel, Federal Energy
Regulatory Commission, Room 10D-01, 888 First St., NE., Washington, DC
20426,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:
Before Commissioners: Jon Wellinghoff, Chairman; Marc Spitzer,
Philip D. Moeller, John R. Norris, and Cheryl A. LaFleur.

I. Introduction

    1. The Federal Energy Regulatory Commission (Commission) previously
amended its regulations in Order No. 680 by modifying certain filing
requirements and establishing procedures to be effective during
emergencies affecting the Commission that require it to implement its
Continuity of Operations Plan (COOP Plan). The COOP Plan was developed
to address emergency conditions lasting up to 30 days during which
Commission headquarters operations may be temporarily disrupted or
communications may be temporarily unavailable, either of which may
prevent the public or the Commission from meeting regulatory or
statutory requirements.\1\ The COOP Plan temporarily suspends filing
requirements and ensures that deadlines for Commission actions that
fall during the period the COOP Plan is in operation are met, thereby
providing continuity in the conduct of the Commission's business and
certainty to parties with business before the Commission.\2\
---------------------------------------------------------------------------

    \1\ More information concerning the COOP Plan can be found on
the Commission's Web site at http://www.ferc.gov/coop.asp.
    \2\ Activation of the COOP Plan affects communications with
headquarters only, and does not affect communications required to be
made directly to the Commission's Regional Offices.
---------------------------------------------------------------------------

    2. One procedure established by the COOP Plan tolls for purposes of
further consideration the time periods for certain Commission actions
that would otherwise be required during an emergency.\3\ Examples of
such actions include the 60-day period for acting on requests for
Exempt Wholesale Generator or Foreign Utility Company status and the
30-day period for acting on requests for rehearing.\4\ The Commission
is now amending this list to also provide for the tolling of Commission
action required in granting relief from, or reinstatement of, an
electric utility's mandatory purchase obligation under section 210(m)
of the Public Utility Regulatory Policies Act of 1978.\5\
---------------------------------------------------------------------------

    \3\ For a complete list of procedures, see Commission Procedures
During Periods of Emergency Operations Requiring Activation of
Continuity of Operations Plan, Order No. 680, FERC Stats. & Regs. ]
31,223 (2006).
    \4\ To view a complete list of tolled Commission actions, see
Order 680, FERC Stats. & Regs. ] 31,223 at P 5.
    \5\ See 16 U.S.C. 824a-3(m) (2006).
---------------------------------------------------------------------------

II. Discussion

    3. The Energy Policy Act of 2005 (EPAct 2005) \6\ was signed into
law on August 8, 2005. Section 1253(a) of EPAct 2005 added section
210(m) to the Public Utility Regulatory Policies Act of 1978 \7\ which
provided, among other things, for termination of the requirement that
an electric utility enter into a new contract or obligation to purchase
electric energy from qualifying cogeneration facilities and qualifying
small power production facilities (QFs) if the Commission finds that
the QF has nondiscriminatory access to one of the three categories of
markets defined in section 210(m)(1)(A), (B) or (C).\8\ In
consideration of the foregoing, the Commission previously amended Part
292 of the Commission's regulations.
---------------------------------------------------------------------------

    \6\ Public Law 109-58, 1253, 119 Stat. 594 (2005).
    \7\ 16 U.S.C. 824a-3(m).
    \8\ New PURPA Section 210(m) Regulations Applicable to Small
Power Production and Cogeneration Facilities, Order No. 688, FERC
Stats. & Regs. ] 31,233, at P 1-8, order on reh'g, Order No. 688-A,
FERC Stats. & Regs. ] 31,250 (2007) (characterizing the three market
types as: (1) Auction based day-ahead and real time markets; (2)
auction based real-time markets but not auction based day-ahead
markets; and (3) comparable markets).
---------------------------------------------------------------------------

    4. Sections 292.309 and 292.310 \9\ set forth the standards and
filing requirements for an application by an electric utility seeking
to terminate the requirement to enter into new purchase contracts and
obligations with QFs. Sections 292.311 and 292.313 similarly provide
the standards and filing requirements for an application for
reinstatement of an electric utility's mandatory purchase
obligation.\10\ In each of these situations the Commission issues an
order within 90 days of such application either terminating or
reinstating an electric utility's mandatory purchase obligation.
---------------------------------------------------------------------------

    \9\ 18 CFR 292.309, 292.310 (2010); see also 18 CFR Sec.
292.312 (2010).
    \10\ 18 CFR 292.311, 292.313 (2010).
---------------------------------------------------------------------------

    5. Section 376.209(c) \11\ enables the Commission, during an
emergency, to toll for purpose of further consideration the time
periods for certain Commission actions. The Commission's regulations,
while providing for the tolling of many Commission actions, do not
address the termination of, or reinstatement of, the mandatory purchase
obligation. To fill this gap, this rule amends the Commission's COOP
Plan to include the tolling of the 90-day period for acting on
applications requesting relief from, or reinstatement of, the mandatory
purchase obligation.
---------------------------------------------------------------------------

    \11\ 18 CFR 376.209(c) (2010).
---------------------------------------------------------------------------

III. Regulatory Flexibility Act Certification

    6. The Regulatory Flexibility Act of 1980 (RFA) \12\ generally
requires a description and analysis of final rules that will have a
significant economic impact on a substantial number of small entities.
This final rule concerns a matter of internal agency procedure and it
will not have such an impact. An analysis under the RFA is not
required.
---------------------------------------------------------------------------

    \12\ 5 U.S.C. 601-12 (2006).
---------------------------------------------------------------------------

IV. Information Collection Standard

    7. Office of Management and Budget (OMB) regulations require OMB to
approve certain information collection requirements imposed by agency
rule.\13\ This final rule contains no new information collections.
Therefore, OMB review of this final rule is not required.
---------------------------------------------------------------------------

    \13\ 5 CFR 1320.12 (2006).
---------------------------------------------------------------------------

V. Environmental Analysis

    8. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment. Excluded
from this requirement are rules that are clarifying, corrective, or
procedural or that do not substantially change the effect of the
regulations being amended.\14\ This rule is procedural in nature and
therefore falls within this exception; consequently, no environmental
consideration is necessary.
---------------------------------------------------------------------------

    \14\ 18 CFR 380.4(a)(2) (2010); Regulations Implementing the
National Environmental Policy Act, Order No. 486, 52 FR 47897 (Dec.
17, 1987), FERC Stats. & Regs. ] 30,783 (1987).
---------------------------------------------------------------------------

VI. Document Availability

    9. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through the Commission's Home Page (http://ferc.gov) and in
the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5 p.m. Eastern time) at 888 First Street, NE., Room 2A,
Washington, DC 20426.
    10. From the Commission's Home Page on the Internet, this
information is available in the eLibrary. The full text of this
document is available on eLibrary in PDF and Microsoft Word format for
viewing, printing, and/or downloading. To access this document in
eLibrary, type the docket number excluding the last three digits of
this document in the docket number field.

    11. User assistance is available for eLibrary and the Commission's
Web site during normal business hours. For assistance, please contact
Online Support at 1-866-208-3676 (e-mail at
FERCOnlineSupport@ferc.gov), or the Public Reference Room at (202) 502-
8371, TTY<PHONE_NUMBER> (e-mail at public.referenceroom@ferc.gov).

VII. Effective Date and Congressional Notification

    12. The provisions of 5 U.S.C. 801 regarding Congressional review
of final rules do not apply to this final rule, because the rule
concerns agency procedure and practice and will not substantially
affect the rights of non-agency parties.
    13. These regulations are effective on August 11, 2010. The
Commission finds that notice and public comments are unnecessary
because this rule concerns only agency procedure or practice.
Therefore, the Commission finds good cause to waive the notice period
otherwise required before the effective date of a final rule.

List of Subjects in 18 CFR Part 376

    Civil defense, Organization and functions (Government agencies).

    By the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.

0
In consideration of the foregoing, the Commission amends part 376,
chapter I, title 18, Code of Federal Regulations, as follows:

PART 376--ORGANIZATION, MISSION, AND FUNCTIONS; COMMISSION
OPERATION DURING EMERGENCY CONDITIONS

0
1. The authority citation for part 376 continues to read as follows:

    Authority: 5 U.S.C. 553; 42 U.S.C. 7101-7352; E.O. 12009, 3 CFR
1978 Comp., p. 142.

0
2. In Sec.  376.209, paragraphs (c)(11) and (12) are revised and
paragraph (c)(13) is added to read as follows:

Sec.  376.209  Procedures during periods of emergency requiring
activation of the Continuity of Operations Plan.

* * * * *
    (c) * * *
    (11) 30-day period for acting on requests for rehearing;
    (12) Time periods for acting on interlocutory appeals and certified
questions; and
    (13) 90-day period for acting on applications requesting relief
from, or reinstatement of, an electric utility's mandatory purchase
obligation pursuant to section 210(m) of the Public Utility Regulatory
Policies Act of 1978.
* * * * *
[FR Doc. 2010-19779 Filed 8-10-10; 8:45 am]
BILLING CODE 6717-01-P