[Federal Register Volume 85, Number 216 (Friday, November 6, 2020)]
[Notices]
[Pages 71115-71118]
[FR Doc No: 2020-24634]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90312; File No. SR-NYSECHX-2020-31]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing of Proposed Rule Change To Amend Rule 7.31

November 2, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934

(``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that
on October 20, 2020, NYSE Chicago, Inc. (``NYSE Chicago'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 7.31 to cancel ALO Orders that
lock displayed interest. The proposed change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend Rule 7.31 (Orders and Modifiers) to
provide that ALO Orders that lock displayed interest would be
cancelled. Specifically, the Exchange proposes to amend Rules
7.31(e)(2), which describes how the Exchange processes ALO Orders, and
7.31(e)(3)(D), which describes how the Exchange processes Day ISO ALO
Orders. Currently, under Rule 7.31(e)(2)(B)(iii), an arriving ALO Order
to buy (sell) with a limit price that would lock a displayed order
priced equal to or below (above) the PBO (PBB) on the Exchange Book
will be assigned a working price and display price one minimum price
variation (``MPV'') below (above) the displayed order. Day ISO ALO
Orders that would lock displayed interest on the Exchange Book are
processed in the same manner.\4\ The Exchange proposes to amend these
rules to provide that arriving ALO and Day ISO ALO Orders with a limit
price that would lock displayed interest on the Exchange Book would be
cancelled.
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    \4\ See Rule 7.31(e)(3)(D)(ii).
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    To effect this change, the Exchange proposes to delete the portion
of Rule 7.31(e)(2)(B)(iii) providing that an ALO Order that locks
displayed interest will be ``assigned a working price and display price
one MPV below (above) the displayed order on the Exchange Book'' and
instead provide that such order would be cancelled. In addition, to
simplify the rule text, the Exchange proposes to combine Rule
7.31(e)(2)(B)(iii), as revised, into Rule 7.31(e)(2)(B)(ii). Proposed
amended Rule 7.31(e)(2)(B)(ii) would thus provide:

    If the limit price of the ALO Order to buy (sell) crosses the
working price of any displayed or non-displayed order on the
Exchange Book priced equal to or below (above) the PBO (PBB), it
will trade as the liquidity taker with such order(s). Any untraded
quantity of the ALO Order will have a working price equal to the PBO
(PBB) and a display price one MPV below (above) the PBO (PBB),
provided that if the limit price of the ALO Order to buy (sell)
locks the display price of any order ranked Priority 2--Display
Orders on the Exchange Book priced equal to or below (above) the PBO
(PBB), it will be cancelled.

    The Exchange also proposes the following conforming changes to
Rules 7.31(e)(2)(B) and 7.31(e)(2)(C) to reflect the proposed change to
how ALO Orders that lock displayed interest would be handled:
     The Exchange proposes to renumber current Rule
7.31(e)(2)(B)(iv) as 7.31(e)(2)(B)(iii) to accommodate the proposed
combination of current Rules 7.31(e)(2)(B)(ii) and 7.31(e)(2)(B)(iii),
as described above.
     The Exchange proposes to replace introductory references
providing that an ALO Order will be ``priced'' or ``priced or trade, or
both,'' with the phrase ``will be processed'' in Rules 7.31(e)(2)(B),
7.31(e)(2)(B)(iv)(a) (which would become Rule 7.31(e)(2)(B)(iii)(a)
after renumbering), 7.31(e)(2)(C), and 7.31(e)(2)(C)(i). The Exchange
proposes to use the term ``processed'' because some ALO Orders would be
cancelled (and therefore not priced or traded).
     The Exchange proposes to renumber current Rule
7.31(e)(2)(B)(v) as 7.31(e)(2)(B)(iv) to accommodate the proposed
combination of current Rules 7.31(e)(2)(B)(ii) and 7.31(e)(2)(B)(iii),
as described above.
     The Exchange further proposes to revise Rule
7.31(e)(2)(C)(i) to delete the reference to orders ranked Priority 2--
Display Orders because, as noted above, an ALO Order would no longer be
repriced based on contra-side Priority 2--Display Orders and instead
would be cancelled. Accordingly, the only time a resting ALO Order
would be repriced is if the contra-side PBBO re-prices.
    The Exchange proposes to amend Rule 7.31(e)(3)(D) to align the
rules governing Day ISO ALOs with the proposed changes to ALO Orders.
Currently, pursuant to Rule 7.31(e)(3)(D)(ii), if the limit price of an
arriving Day ISO ALO locks the display price of a displayed order on
the Exchange Book, it will be assigned a working price and display
price one MPV below (above) the price of the displayed order. As with
ALO Orders, the Exchange proposes to amend this rule to specify that
arriving Day ISO ALOs that lock displayed interest would be cancelled.
    To effect this change, the Exchange proposes to delete the portion
of Rule 7.31(e)(3)(D)(ii) that provides that a Day ISO ALO that locks
displayed interest will be ``assigned a working price and display price
one MPV below (above) the displayed order on the Exchange Book'' and
instead provide that such order would be cancelled. In addition, to
simplify the rule text, the Exchange proposes to combine Rule
7.31(e)(3)(D)(ii), as revised, with Rule 7.31(e)(3)(D)(i). Proposed
amended Rule 7.31(e)(3)(D)(i) would thus provide:

    If the limit price of the Day ISO ALO to buy (sell) crosses the
working price of any displayed or non-displayed order on the
Exchange Book, it will trade as the liquidity taker with such
order(s). Any untraded quantity of the Day ISO ALO will have a
working price and display price equal to its limit price, provided
that if the limit price of the Day ISO ALO to buy (sell) locks the
display price of any order ranked Priority 2--Display Orders on the
Exchange Book, it will be cancelled.

    The Exchange also proposes the following conforming changes
consistent with the proposed change to cancel Day ISO ALOs that lock
displayed interest:
     The Exchange proposes to renumber Rule 7.31(e)(3)(D)(iii)
as Rule 7.31(e)(3)(D)(ii) to accommodate the proposed combination of
current Rules 7.31(e)(3)(D)(i) and 7.31(e)(3)(D)(ii), as described
above.
     The Exchange proposes to replace introductory references
providing that a Day ISO ALO Order will be ``priced'' or ``priced or
trade, or both,'' with the phrase ``will be processed'' in Rules
7.31(e)(3)(D) and 7.31(3)(D)(ii)(a) (as

renumbered). The Exchange proposes this change to reflect that certain
ALO Orders would be cancelled (and therefore not priced or traded).
     The Exchange proposes to delete Rule 7.31(e)(3)(D)(iv),
which currently specifies how a Day ISO ALO will be processed after it
is displayed. Because a Day ISO ALO would now either display at its
limit price (because, by its terms, it can be displayed at a price that
locks or crosses the contra-side PBBO) \5\ or be cancelled if it locks
displayed interest on the Exchange Book, there would no longer be any
circumstances where a resting Day ISO ALO would reprice and therefore
this rule text would no longer be applicable.
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    \5\ See Rule 7.31(e)(3)(C).
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* * * * *
    Because of the technology changes associated with this proposed
rule change, the Exchange will announce the implementation date by
Trader Update. Subject to approval of this proposed rule change, the
Exchange anticipates that the proposed changes will be implemented in
January 2021.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Act,\6\ in general, and furthers the objectives of Section 6(b)(5),\7\
in particular, because 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, to remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system and, in general, to protect investors and
the public interest.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market by
simplifying the treatment of ALO Orders that lock displayed orders. The
Exchange believes that cancelling ALO Orders that lock displayed
interest, rather than repricing them, would provide Participants with
greater determinism with respect to how ALO Orders would be processed
on the Exchange and enhance Participants' ability to manage order flow
to suit their business needs. In addition, the Exchange believes that
cancelling ALO Orders that would otherwise be marketable against
displayed interest on the Exchange Book is consistent with the terms of
the ALO Order, i.e., that such orders would not take liquidity on the
Exchange. The Exchange further believes that the proposed changes would
promote just and equitable principles of trade and remove impediments
to, and perfect the mechanism of, a free and open market and a national
market system and, in general, protect investors and the public
interest because the proposed behavior to cancel ALO Orders on the
Exchange if the limit price would lock contra-side displayed orders
would be consistent with functionality available on other exchanges for
similar order types when they lock displayed interest.\8\
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    \8\ See, e.g., Cboe BZX Exchange, Inc. (``BZX'') Rules
11.9(c)(6), 11.9(g)(1)(D), 11.9(g)(2)(D), and 11.13(a)(2)(C) (a Post
Only Order that locks displayed interest on BZX may be cancelled at
the User's option); Nasdaq Stock Exchange LLC (``Nasdaq'') Rule
4702(b)(4)(A) (Nasdaq Participants may opt to have Post-Only Orders
cancel if they lock orders displayed on the Nasdaq Book); MEMX LLC
(``MEMX'') Rules 11.6(a), 11.6(l), and 11.8(b)(10) (Users have the
option to apply Post Only and Cancel Back instructions to orders
that would lock displayed interest, and MEMX cancels ISO orders with
Post Only and Day instructions if they lock displayed interest).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposed rule change would reduce the burden on competition because
it would simplify the treatment of such orders when they lock displayed
interest and promote consistency with functionality offered for similar
order types on other exchanges.\9\
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    \9\ See id.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the 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-NYSECHX-2020-31 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSECHX-2020-31. 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 website (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 website 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 the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSECHX-2020-31 and should be submitted
on or before November 27, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-24634 Filed 11-5-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)]
[Proposed Rules]
[Pages 37764-37766]
[FR Doc No: 2018-16495]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

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

Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 /
Proposed Rules

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0052; Product Identifier 2016-SW-081-AD]
RIN 2120-AA64

Airworthiness Directives; Bell Helicopter Textron Inc.
Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to supersede airworthiness directive (AD) 2015-04-
04 for Bell Helicopter Textron Inc. (Bell) Model 412 and 412EP
helicopters. AD 2015-04-04 requires revising the Rotorcraft Flight
Manual (RFM) and installing a placard to limit flights to visual flight
rules (VFR) and prohibiting night operations because of failing
inverters. This proposed AD would require replacing the inverters with
a new inverter. The actions in this proposed AD are intended to correct
an unsafe condition on these products.

DATES: We must receive comments on this proposed AD by October 1, 2018.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Docket: Go to http://www.regulations.gov. Follow the online instructions for sending your
comments electronically.
     Fax:<PHONE_NUMBER>.
     Mail: Send comments to the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590-0001.
     Hand Delivery: Deliver to the ``Mail'' address between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

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-
0052; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this proposed AD, the economic evaluation, any comments received and
other information. The street address for Docket Operations (telephone
800-647-5527) is in the ADDRESSES section. Comments will be available
in the AD docket shortly after receipt.
    For service information identified in this proposed rule, contact
Bell Helicopter Textron, Inc., P.O. Box 482, Fort Worth, TX 76101;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; or at http://www.bellcustomer.com/files/. You may review service information at the
FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood
Pkwy, Room 6N-321, Fort Worth, TX 76177.

FOR FURTHER INFORMATION CONTACT: Tim Beauregard, Aviation Safety
Engineer, DSCO Branch, AIR-7J0, FAA, 10101 Hillwood Pkwy, Fort Worth,
TX 76177; telephone<PHONE_NUMBER>; email [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to participate in this rulemaking by submitting
written comments, data, or views. We also invite comments relating to
the economic, environmental, energy, or federalism impacts that might
result from adopting the proposals in this document. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. To
ensure the docket does not contain duplicate comments, commenters
should send only one copy of written comments, or if comments are filed
electronically, commenters should submit only one time.
    We will file in the docket all comments that we receive, as well as
a report summarizing each substantive public contact with FAA personnel
concerning this proposed rulemaking. Before acting on this proposal, we
will consider all comments we receive on or before the closing date for
comments. We will consider comments filed after the comment period has
closed if it is possible to do so without incurring expense or delay.
We may change this proposal in light of the comments we receive.

Discussion

    We issued AD 2015-04-04, Amendment 39-18106 (80 FR 9594, February
24, 2015), for Bell Model 412 and 412EP helicopters with an inverter
part number (P/N) 412-375-079-101 or 412-375-079-103 with a serial
number 29145 or higher. AD 2015-04-04 was prompted by numerous failures
of inverters. The failure of one inverter can result in smoke in the
cockpit, making landing at night and during instrument meteorological
conditions difficult. If two inverters fail, then the pilot will lose
primary flight and navigation displays, autopilot, and alternate
current powered engine and transmission indicators.
    To address this condition, Bell issued Alert Service Bulletin (ASB)
412-13-156, dated April 25, 2013, which specifies inspecting inverter
part number (P/N) 412-375-079-101 and either repairing it or replacing
it with inverter P/N 412-375-079-103 to prevent failure. Because the
specific cause of the inverter failures had not been verified, and
since inverter failures continued after Bell issued the ASB, we
determined the actions specified in the ASB did not correct the unsafe
condition. Therefore, AD 2015-04-04 requires revising the RFM and
installing a placard in full view of the pilot to limit flights to VFR
only and prohibit night operations.

Actions Since AD 2015-04-04 Was Issued

    Since we issued AD 2015-04-04, Bell determined the root causes of
the failures were an external connector that caused a short circuit
inside inverter P/N 412-375-079-101 and components chafing because of
variations in the assembly process and packaging tolerances for
inverter P/N 412-375-079-103. Bell introduced an improved inverter, P/N
412-375-079-105, and retrofit kits to replace inverter P/N 412-375-079-
101 or 412-375-079-103 on helicopters with serial numbers 33001 or
higher. These replacements and repairs correct the unsafe condition by
providing 250 voltage amperes (VA) of total power instead of 500 VA,
thereby reducing the input power to the inverter.

FAA's Determination

    We are proposing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of these same type
designs.

Related Service Information

    We reviewed Bell Alert Service Bulletin (ASB) 412-15-164, dated
March 13, 2015 (ASB 412-15-164), which specifies an alternate means of
compliance (AMOC) approved by the FAA for AD 2015-04-04 (80 FR 9594,
February 24, 2015). Instead of the flight limitations mandated by AD
2015-04-04, ASB 412-15-164 limits allow operation under instrument
flight rules (IFR) and night operations with two pilots.
    We also reviewed Bell ASB 412-16-171, dated March 22, 2016 (ASB
412-16-171), which specifies replacing certain serial-numbered
inverters P/N 412-375-079-101 and 412-375-079-103 with inverter P/N
412-375-079-105 as a direct replacement or with a retrofit kit. Bell
specifies that completing the actions specified by the ASB constitute
terminating action for Bell ASB 412-15-164.
    Lastly, we reviewed Bell Service Instruction for Inverter Retrofit
Kit BHT-412-SI-93, dated February 15, 2016, which provides instructions
for installing retrofit kit P/N 412-704-058-103.

Proposed AD Requirements

    The proposed AD would require, within 25 hours time-in-service
(TIS), replacing the inverter with inverter P/N 412-375-079-105 and,
for some helicopters, installing retrofit kit P/N 412-704-058-103.
    After accomplishing the previous actions, the proposed AD would
allow removing the placard and Rotorcraft Flight Manual limitations
that prohibit night operations and restrict flights to visual flight
rules.
    After the effective date of this AD, this proposed AD would
prohibit installing an inverter P/N 412-375-079-101 or 412-375-079-103
on any helicopter.

Differences Between This Proposed AD and the Service Information

    Bell ASB 412-16-171 requires compliance no later than January 1,
2017, while this proposed AD would require compliance within 25 hours
TIS. Bell ASB 412-16-171 makes an electrical load analysis a
determining factor for corrective actions. This proposed AD would make
no such requirement. Bell ASB 412-16-171 provides instructions for
helicopters with serial numbers 36649, 36658, 36659, 36673, 36681
through 36684, 36686, 36688, 36690, 36692, 36694, and 36696 through
36704, and this proposed AD would not. Bell has notified us of errors
in the S/Ns listed for Part B of ASB 412-16-171. Accordingly, this
proposed AD would only be applicable to those serial-numbered
helicopters subject to the unsafe condition.

Costs of Compliance

    We estimate that this proposed AD would affect 73 helicopters of
U.S. Registry and that labor costs average $85 per work-hour. Based on
these estimates, we expect that installing a new inverter or retrofit
kit would require about 3 work-hours and a parts cost of $15,749, for a
total cost of $16,004 per helicopter and $1,168,292 for the U.S. fleet.

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.

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed, I certify this proposed regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979);
    3. Will not affect intrastate aviation in Alaska to the extent that
it justifies making a regulatory distinction; 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.
    We prepared an economic evaluation of the estimated costs to comply
with this proposed AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by removing Airworthiness Directive (AD)
2015-04-04, Amendment 39-18106 (80 FR 9594, February 24, 2015), and
adding the following new AD:

Bell Helicopter Textron Inc.: Docket No. FAA-2017-0052; Product
Identifier 2016-SW-081-AD.

(a) Applicability

    This AD applies to Model 412 and 412EP helicopters with a serial
number (S/N) 33001 through 33213, 34001 through 34036, 36001 through
36648, 36650 through 36657, 36660 through 36672, 36674 through
36680, 36685, 36687, 36689, 36691, 36693, 36695, and 37002 through
37012, certificated in any category, with a static inverter
(inverter) part number (P/N) 412-375-079-101 or 412-375-079-103
installed.

(b) Unsafe Condition

    This AD defines the unsafe condition as the failure of an
inverter under instrument meteorological conditions or night flight.
This condition could result in smoke in the cockpit, increased pilot
workload due to the loss of primary flight and navigation displays,
alternating current powered engine and transmission indicators, and
autopilot, and subsequent loss of control of the helicopter.

(c) Affected ADs

    This AD replaces AD 2015-04-04, Amendment 39-18106 (80 FR 9594,
February 24, 2015).

(d) Comments Due Date

    We must receive comments by October 1, 2018.

(e) Compliance

    You are responsible for performing each action required by this
AD within the

specified compliance time unless it has already been accomplished
prior to that time.

 (f) Required Actions

    (1) Within 25 hours time-in-service:
    (i) For helicopters with a S/N 33001 through 33213, 34001
through 34036, and 36001 through 36086, replace the inverter with
inverter P/N 412-375-079-105.
    (ii) For helicopters with a S/N 36087 through 36648, 36650
through 36657, 36660 through 36672, 36674 through 36680, 36685,
36687, 36689, 36691, 36693, 36695, and 37002 through 37012, install
retrofit kit P/N 412-704-058-103 and replace the inverter with
inverter P/N 412-375-079-105.
    (2) After accomplishing the actions required by paragraph (f)(1)
of this AD, you may remove the placard and Rotorcraft Flight Manual
limitations, required by AD 2015-04-04, prohibiting night operations
and restricting flights to visual flight rules.
    (3) After the effective date of this AD, do not install an
inverter P/N 412-375-079-101 or 412-375-079-103 on any helicopter.

(g) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, DSCO, FAA, may approve AMOCs for this AD. Send
your proposal to: Tim Beauregard, Aviation Safety Engineer, DSCO
Branch, AIR-7J0, FAA, 10101 Hillwood Pkwy, Fort Worth, TX 76177;
telephone<PHONE_NUMBER>; email [email protected].
    (2) For operations conducted under a 14 CFR part 119 operating
certificate or under 14 CFR part 91, subpart K, we suggest that you
notify your principal inspector, or lacking a principal inspector,
the manager of the local flight standards district office or
certificate holding district office before operating any aircraft
complying with this AD through an AMOC.

(h) Additional Information

    Bell Alert Service Bulletin 412-15-164, dated March 13, 2015,
and Bell Alert Service Bulletin 412-16-171, dated March 22, 2016,
which are not incorporated by reference, contain additional
information about the subject of this AD. For service information
identified in this AD, contact Bell Helicopter Textron, Inc., P.O.
Box 482, Fort Worth, TX 76101; telephone<PHONE_NUMBER>; fax (817)
280-6466; or at http://www.bellcustomer.com/files/. You may review
this service information at the FAA, Office of the Regional Counsel,
Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort Worth, TX
76177.

(i) Subject

    Joint Aircraft Service Component (JASC) Code: 2422, AC Inverter.

    Issued in Fort Worth, Texas, on June 19, 2018.
Scott A. Horn,
Deputy Director for Regulatory Operations, Compliance and Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2018-16495 Filed 8-1-18; 8:45 am]
 BILLING CODE 4910-13-P