[Federal Register Volume 77, Number 15 (Tuesday, January 24, 2012)]
[Notices]
[Pages 3532-3539]
[FR Doc No: 2012-1290]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66180; File No. SR-NYSEArca-2012-04]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating To Listing and Trading of Shares of
Twenty-Six Series of ProShares Trust II Under NYSE Arca Equities Rule
8.200

January 18, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that, on January 6, 2012, NYSE Arca, Inc. (``Exchange''
or ``NYSE Arca'') 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 Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade shares of the following
under NYSE Arca Equities Rule 8.200: ProShares UltraPro Australian
Dollar, ProShares UltraPro Canadian Dollar, ProShares UltraPro Swiss
Franc, ProShares UltraPro Euro, ProShares UltraPro U.S. Dollar, and
ProShares UltraPro Yen (collectively, ``UltraPro Funds''); ProShares
UltraPro Short Australian Dollar, ProShares UltraPro Short Canadian
Dollar, ProShares UltraPro Short Swiss Franc, ProShares UltraPro Short
Euro, ProShares UltraPro Short U.S. Dollar, and ProShares UltraPro
Short Yen (collectively, ``UltraPro Short Funds''); ProShares Ultra
Australian Dollar, ProShares Ultra Canadian Dollar, ProShares Ultra
Swiss Franc and ProShares Ultra U.S. Dollar (collectively, ``Ultra
Funds''); ProShares UltraShort Australian Dollar, ProShares UltraShort
Canadian Dollar, ProShares UltraShort Swiss Franc and ProShares
UltraShort U.S. Dollar (collectively, ``UltraShort Funds''); and
ProShares Short Australian Dollar, ProShares Short Canadian Dollar,
ProShares Short Swiss Franc, ProShares Short Euro, ProShares Short U.S.
Dollar, and ProShares Short Yen (collectively, ``Short Funds''). The
text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and www.nyse.com.

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NYSE Arca Equities Rule 8.200, Commentary .02 permits the trading
of Trust Issued Receipts (``TIRs'') either by listing or pursuant to
unlisted trading privileges (``UTP'').\3\ The Exchange proposes to list
and trade shares (``Shares'') of the following pursuant to NYSE Arca
Equities Rule 8.200: ProShares UltraPro Australian Dollar, ProShares
UltraPro Canadian Dollar, ProShares UltraPro Swiss Franc, ProShares
UltraPro Euro, ProShares UltraPro U.S. Dollar, ProShares UltraPro Yen,
ProShares UltraPro Short Australian Dollar, ProShares UltraPro Short
Canadian Dollar, ProShares UltraPro Short Swiss Franc, ProShares
UltraPro Short Euro, ProShares UltraPro Short U.S. Dollar, ProShares
UltraPro Short Yen, ProShares Ultra Australian Dollar, ProShares Ultra
Canadian Dollar,

ProShares Ultra Swiss Franc, ProShares Ultra U.S. Dollar, ProShares
UltraShort Australian Dollar, ProShares UltraShort Canadian Dollar,
ProShares UltraShort Swiss Franc, ProShares UltraShort U.S. Dollar,
ProShares Short Australian Dollar, ProShares Short Canadian Dollar,
ProShares Short Swiss Franc, ProShares Short Euro, ProShares Short U.S.
Dollar, and ProShares Short Yen (each a ``Fund'' and, collectively,
``Funds'').\4\ Each of the Funds is a series of the ProShares Trust II
(``Trust''), a Delaware statutory trust. ProShare Capital Management
LLC (``Sponsor'') is the Trust's sponsor and Wilmington Trust Company
is the Trust's trustee. Brown Brothers Harriman & Co.
(``Administrator'') serves as the administrator, custodian and transfer
agent of the Funds. SEI Investments Distribution Co. (``Distributor'')
serves as distributor of the Shares.
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    \3\ Commentary .02 to NYSE Arca Equities Rule 8.200 applies to
TIRs that invest in ``Financial Instruments.'' The term ``Financial
Instruments,'' as defined in Commentary .02(b)(4) to NYSE Arca
Equities Rule 8.200, means any combination of investments, including
cash; securities; options on securities and indices; futures
contracts; options on futures contracts; forward contracts; equity
caps, collars and floors; and swap agreements.
    \4\ See registration statement on Form S-1, dated December 22,
2011 (File No. 333-178707) (``Registration Statement''). The
description of the Funds and the Shares contained herein is based,
in part, on the Registration Statement.
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    The Exchange notes that the Commission has previously approved the
listing and trading of other series of the Commodities and Currency
Trust (now known as ProShares Trust II) on the American Stock Exchange
LLC,\5\ trading on NYSE Arca pursuant to UTP \6\ and listing and
trading on NYSE Arca.\7\ The Exchange further notes that the shares of
other ProShares Ultra Funds, UltraShort Funds and Short Funds based on
various securities indexes have previously been approved by the
Commission.\8\
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    \5\ See, e.g., Securities Exchange Act Release No. 58161 (July
15, 2008), 73 FR 42380 (July 21, 2008) (SR-Amex-2008-39).
    \6\ See, e.g., Securities Exchange Act Release No. 58162 (July
15, 2008), 73 FR 42391 (July 21, 2008) (SR-NYSEArca-2008-73).
    \7\ See, e.g., Securities Exchange Act Release No. 58457
(September 3, 2008), 73 FR 52711 (September 10, 2008) (SR-NYSEArca-
2008-91) (approving listing of certain leveraged ProShares Funds on
the Exchange).
    \8\ See, e.g., Securities Exchange Act Release Nos. 52553
(October 3, 2005), 70 FR 59100 (October 11, 2005) (SR-Amex-2004-62)
(approving the listing and trading of shares of the xtraShares
Trust); 54040 (June 23, 2006), 71 FR 37629 (June 30, 2006) (SR-Amex-
2006-41) (approving the listing and trading of shares of the
ProShares Trust); 55117 (January 17, 2007), 72 FR 3442 (January 25,
2007) (SR-Amex 2006-101) (approving the listing and trading of
shares of the ProShares Trust); 56592 (October 1, 2007), 72 FR 57364
(October 9, 2007) (SR-Amex-2007-60) (approving the listing and
trading of 6 issues of shares of the ProShares Trust based on
international equity indexes); and 56998 (December 19, 2007), 72 FR
73404 (December 27, 2007) (SR-Amex-2007-104) (approving the listing
and trading of shares of the ProShares Trust).
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    According to the Registration Statement, the UltraPro Funds seek
daily investment results (before fees and expenses) that correspond to
three times (+300%) the daily performance, whether positive or
negative, of their corresponding benchmark and the UltraPro Short Funds
seek daily investment results (before fees and expenses) that
correspond to three times the inverse (-300%) of the daily performance,
whether positive or negative, of their corresponding benchmark. The
Ultra Funds seek daily investment results (before fees and expenses)
that correspond to twice (+200%) the daily performance, whether
positive or negative, of their corresponding benchmarks and the
UltraShort Funds seek daily investment results (before fees and
expenses) that correspond to twice the inverse (-200%) of the daily
performance, whether positive or negative, of their corresponding
benchmarks. The Short Funds seek daily investment results (before fees
and expenses) that correspond to the inverse (-100%) of the daily
performance, whether positive or negative, of their corresponding
benchmarks. Each reference to a corresponding benchmark is a
``Benchmark'' and together, ``Benchmarks,'' as described below.
    Each of the Funds will hold futures contracts on the applicable
Benchmark and, in the case of a Benchmark index, futures on such
Benchmark index or the Benchmark index components, traded on a United
States exchange (``Benchmark Futures Contracts'') and, to a limited
extent, forward contracts, as described below, to produce the
economically ``inverse,'' ``leveraged,'' and ``inverse leveraged''
investment results, as set forth by each Fund's investment
objective.\9\
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    \9\ Terms relating to the Funds, the Shares and the Benchmarks
referred to, but not defined, herein are defined in the Registration
Statement.
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    According to the Registration Statement, each Fund seeks to achieve
its investment objective by investing under normal market
conditions,\10\ in Benchmark Futures Contracts. In the event position
accountability rules or position limits are reached with respect to a
particular Benchmark Futures Contract, the Sponsor may, in its
commercially reasonable judgment, cause the relevant Fund to obtain
exposure through over-the-counter forward contracts referencing the
particular exchange rate, index or index components, or invest in other
forward contracts not based on the particular exchange rate, if such
instruments tend to exhibit trading prices or returns that correlate
with the Benchmarks or any Benchmark Futures Contract and will further
the investment objective of a Fund.\11\ A Fund may also invest in
forward contracts if the market for a specific Benchmark Futures
Contract experiences emergencies (e.g., natural disaster, terrorist
attack or an act of God) or disruptions (e.g., a trading halt or a
flash crash) to prevent a Fund from obtaining the appropriate amount of
investment exposure to the affected Benchmark Futures Contracts
directly.\12\
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    \10\ The term ``under normal conditions'' [sic] includes, but is
not limited to, the absence of extreme volatility or trading halts
in the futures 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.
    \11\ To the extent practicable, the Funds will invest in forward
contracts cleared through the facilities of a centralized clearing
house.
    \12\ According to the Registration Statement, the Sponsor will
also attempt to mitigate the Funds' credit risk by transacting only
with large, well-capitalized institutions using measures designed to
determine the creditworthiness of a counterparty. The Sponsor will
take various steps to limit counterparty credit risk, as described
in the Registration Statement.
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    Each Fund will also invest in cash equivalents (such as shares of
money market funds, bank deposits, bank money market accounts, certain
variable rate-demand notes and repurchase agreements collateralized by
government securities, whether denominated in U.S. dollars or the
applicable foreign currency) that serve or will serve as collateral for
the investments in futures and forward contracts. The Funds do not
currently intend to invest directly in any currency but may invest
directly in U.S. Treasury securities.
    The Funds' investment in Benchmark Futures Contracts and forward
contracts may involve a small investment relative to the amount of
investment exposure assumed and may result in losses exceeding the
amounts invested. Such instruments, particularly when used to create
leverage, may expose the Funds to potentially dramatic changes (losses
or gains) in the value of the instruments and imperfect correlation
between the value of the instruments and the applicable Benchmark.
    The Funds will not seek to achieve their stated investment
objective over a period of time greater than one day because
mathematical compounding prevents the Funds from perfectly achieving
such results. Accordingly, results over periods of time greater than
one day typically will not be a simple multiple (e.g., 2x, 3x, or -1x,
-2x, -3x) of the period return of the corresponding Benchmark and may
differ significantly.
    If an UltraPro Fund (or UltraPro Short Fund) is successful in
meeting its

objective, its value on a given day (before fees and expenses) should
gain (or lose) approximately three times as much on a percentage basis
as its corresponding Benchmark when the Benchmark rises on a given day.
Conversely, its value on a given day (before fees and expenses) should
lose (or gain) approximately three times as much on a percentage basis
as the corresponding Benchmark when the Benchmark declines on a given
day.
    If an Ultra Fund (or UltraShort Fund) is successful in meeting its
objective, its value on a given day (before fees and expenses) should
gain (or lose) approximately twice as much on a percentage basis as its
corresponding Benchmark when the Benchmark rises on a given day.
Conversely, its value on a given day (before fees and expenses) should
lose (or gain) approximately twice as much on a percentage basis as the
corresponding Benchmark when the Benchmark declines on a given day.
    If a Short Fund is successful in meeting its objective, its value
on a given day (before fees and expenses) should gain approximately as
much on a percentage basis as the corresponding Benchmark when the
Benchmark declines on a given day. Conversely, its value on a given day
(before fees and expenses) should lose approximately as much on a
percentage basis as the corresponding Benchmark when the Benchmark
rises on a given day.
    In seeking to achieve each Fund's daily investment objective, the
Sponsor will use a mathematical approach to investing. Using this
approach, the Sponsor will determine the type, quantity and mix of
investment positions that the Sponsor believes in combination should
produce daily returns consistent with a Fund's objective. The Sponsor
will rely upon a pre-determined model to generate orders that result in
repositioning each Fund's investments in accordance with its daily
investment objectives.
    According to the Registration Statement, a number of factors may
affect a Fund's ability to achieve a high degree of correlation with
its Benchmark, and there can be no guarantee that a Fund will achieve a
high degree of correlation. While the Funds do not expect that their
daily returns will deviate adversely from their respective daily
investment objectives, several factors may affect their ability to
achieve this correlation. Among these factors are a Fund's expenses,
including fees, transaction costs and the cost of the investment
techniques employed by that Fund, bid-ask spreads, a Fund's Share
prices being rounded to the nearest cent, changes to a Benchmark that
are not disseminated in advance and the need to conform a Fund's
portfolio holdings to comply with investment restrictions or policies
or regulatory or tax law requirements.
ProShares UltraPro Australian Dollar, ProShares UltraPro Short
Australian Dollar, ProShares Ultra Australian Dollar, ProShares
UltraShort Australian Dollar, and ProShares Short Australian Dollar
    These Funds will be designed to track a multiple, the inverse or an
inverse multiple of the daily performance of the Australian dollar spot
price versus the U.S. dollar (``AUD/USD''). The Benchmark for each of
these Funds will be the U.S. dollar price of the Australian dollar.
These Funds will use the 4 p.m. Eastern Time (``E.T.'') Australian
Dollar exchange rate as provided by Bloomberg, expressed in terms of
U.S. dollars per unit of foreign currency, as the basis for the
underlying Benchmark. The Australian dollar is the national currency of
Australia and the currency of the accounts of the Reserve Bank of
Australia, the Australian central bank. The official currency code for
the Australian dollar is ``AUD.'' The Australian dollar is referred to
in Australia as ``dollar.'' As with U.S. currency, 100 Australian cents
are equal to one Australian dollar. In Australia, unlike most other
countries, cash transactions are rounded to the nearest five cents. The
most commonly used symbol used to represent the Australian dollar is
``A$.''
    As of December 30, 2011, open interest in AUD/USD futures contracts
traded on the Chicago Mercantile Exchange (``CME'') was $11.56 billion.
AUD/USD futures contracts had an average daily trading volume in 2011
of 123,006 contracts.
ProShares UltraPro Canadian Dollar, ProShares UltraPro Short Canadian
Dollar, ProShares Ultra Canadian Dollar, ProShares UltraShort Canadian
Dollar, and ProShares Short Canadian Dollar
    These Funds will be designed to track a multiple, the inverse or an
inverse multiple of the daily performance of the Canadian dollar spot
price versus the U.S. dollar (CAD/USD). The Benchmark for each of these
Funds will be the U.S. dollar price of the Canadian dollar. These Funds
will use the 4 p.m. E.T. Canadian dollar exchange rate as provided by
Bloomberg, expressed in terms of U.S. dollars per unit of foreign
currency, as the basis for the underlying Benchmark. The Canadian
Dollar is the national currency of Canada and the currency of the
accounts of the Bank of Canada, the Canadian central bank. The official
currency code for the Canadian dollar is ``CAD.'' As with U.S.
currency, 100 Canadian cents are equal to one Canadian dollar.
    As of December 30, 2011, open interest in CAD/USD futures contracts
traded on CME was $11.66 billion. CAD/USD futures contracts had an
average daily trading volume in 2011 of 89,667 contracts.
ProShares UltraPro Swiss Franc, ProShares UltraPro Short Swiss Franc,
ProShares Ultra Swiss Franc, ProShares UltraShort Swiss Franc, and
ProShares Short Swiss Franc
    These Funds will be designed to track a multiple, the inverse or an
inverse multiple of the daily performance of the Swiss franc spot price
versus the U.S. dollar (``CHF/USD''). The Benchmark for each of these
Funds will be the U.S. dollar price of the Swiss Franc. These Funds
will use the 4 p.m. E.T. Swiss franc exchange rate as provided by
Bloomberg, expressed in terms of U.S. dollars per unit of foreign
currency, as the basis for the underlying Benchmark. The Swiss franc is
the national currency of Switzerland and Liechtenstein and the currency
of the accounts of the Swiss National Bank, the central bank of
Switzerland. The official currency code for the Swiss franc is ``CHF.''
Each Swiss franc is equal to 100 Swiss centimes.
    As of December 30, 2011, open interest in CHF/USD futures contracts
traded on CME was $4.99 billion. CHF/USD futures contracts had an
average daily trading volume in 2011 of 40,955 contracts.
ProShares UltraPro Euro, ProShares UltraPro Short Euro, and ProShares
Short Euro
    These Funds will be designed to track a multiple, the inverse, or
an inverse multiple of the daily change in the spot price of the euro
versus the U.S. dollar (``EUR/USD''). The Benchmark for each of these
Funds will be the U.S. dollar price of the Euro. These Funds will use
the 4 p.m. E.T. Euro exchange rate as provided by Bloomberg, expressed
in terms of U.S. dollars per unit of foreign currency, as the basis for
the underlying Benchmark. The Euro is the official currency of the
Eurozone, which consists of 17 European states including: Austria,
Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland,
Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia,
Slovenia, and Spain. The Euro is managed and administered by the
European Central Bank and the European System of Central Banks. As of
December 30, 2011, open interest in

EUR\USD futures contracts traded on CME was $46.12 billion. EUR\USD
futures contracts had an average daily trading volume in 2011 of
336,947 contracts.
ProShares UltraPro U.S. Dollar, ProShares UltraPro Short U.S. Dollar,
ProShares Ultra U.S. Dollar, ProShares UltraShort U.S. Dollar, and
ProShares Short U.S. Dollar
    These Funds will be designed to track a multiple, the inverse or an
inverse multiple of the daily performance of their Benchmark, the U.S.
Dollar Index (``U.S. Dollar Index'' or ``Index'').\13\ The U.S. Dollar
Index is a geometrically-averaged calculation of six currencies
weighted against the U.S. dollar. The six component currencies are the
Euro, Japanese yen, British pound, Canadian dollar, Swedish krona and
Swiss franc. The component currencies do not have the same weight. The
Euro has a weighting of 57.6%, the Japanese yen a weighting of 13.6%,
the British pound a weighting of 11.9%, the Canadian dollar a weighting
of 9.1%, the Swedish krona a weighting of 4.2% and the Swiss franc a
weighting of 3.6%. The U.S. Dollar Index is calculated by Bloomberg in
real time approximately every 15 seconds using the spot prices of the
Index's component currencies. The price used for the calculation of the
Index is the mid-point between the Bloomberg top of the book bid/offer
in the component currencies.
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    \13\ The U.S. Dollar Index was created by the U.S. Federal
Reserve in 1973. Following the ending of the 1944 Bretton Woods
Agreement, which had established a system of fixed exchange rates,
the U.S. Federal Reserve Bank began the calculation of the U.S.
Dollar Index to provide an external bilateral trade-weighted average
of the U.S. dollar as it freely floated against global currencies.
Futures contracts based on the U.S. Dollar Index (``USDX'' or ``U.S.
Dollar Index futures contracts'') were listed on November 20, 1985,
and are now available only on the IntercontinentalExchange (``ICE'')
electronic trading platform. Options on the futures contracts began
trading on September 3, 1986, and are available both on the ICE
electronic trading platform and on the ICE options trading floor.
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    In addition to the data on EUR/USD, CAD/USD, CHF/USD and JPY/USD
futures contracts stated herein, as of December 30, 2011, open interest
in U.S. Dollar Index futures contracts traded on ICE was $5.44 billion.
U.S. Dollar Index futures contracts had an average daily trading volume
in 2011 of 30,341 contracts. Open interest in British pound (``GBP/
USD'') futures contracts traded on the CME was $19.59 billion, and GBP/
USD futures contracts had an average daily trading volume in 2011 of
116,115 contracts. Open interest in Swedish krona (``SEK/USD'') futures
contracts traded on the CME was $16.79 million, and SEK/USD futures
contracts had an average daily trading volume of 8 contracts.
ProShares UltraPro Yen, ProShares UltraPro Short Yen, and ProShares
Short Yen
    These Funds will be designed to track a multiple, the inverse or an
inverse multiple of the daily performance of the Japanese yen spot
price versus the U.S. dollar (``JPY/USD''). The Benchmark for each of
these Funds will be the U.S. dollar price of the Japanese yen. These
Funds will use the 4 p.m. E.T. Japanese yen exchange rate as provided
by Bloomberg, expressed in terms of U.S. dollars per unit of foreign
currency, as the basis for the underlying Benchmark. The Japanese yen
has been the official currency of Japan since 1871. The Bank of Japan
has been operating as the central bank of Japan since 1882. The
official currency code for the Japanese yen is ``YEN.''
    As of December 30, 2011, open interest in JPY/USD futures contracts
traded on the CME was $25.75 billion. JPY/USD futures contracts had an
average daily trading volume in 2011 of 113,476 contracts.
Benchmark Futures Contracts Held by the Funds
    All open Benchmark Futures Contracts held by the Funds will be
traded on a United States exchange and will be calculated at their then
current market value, based upon the last traded price before the net
asset value (``NAV'') calculation time, for that particular futures
contract traded on the applicable United States exchange on the date
with respect to which NAV is being determined; provided, that if a
futures contract traded on a United States exchange could not be
liquidated on such day, due to the operation of daily limits or other
rules of the exchange upon which that position is traded or otherwise,
the Sponsor may in its sole discretion choose to determine a fair value
price as the basis for determining the market value of such position
for such day.
    The Benchmark Futures Contracts trade on the follow exchanges:

------------------------------------------------------------------------
                                  Benchmark futures
        Fund benchmarks               contracts         Exchange \14\
------------------------------------------------------------------------
Australian dollar/US dollar      AUD/USD...........  CME
 exchange rate.
Canadian dollar/US dollar        CAD/USD...........  CME
 exchange rate.
European euro/US dollar          EUR/USD...........  CME
 exchange rate.
Japanese yen/US dollar exchange  JPY/USD...........  CME
 rate.
Swiss franc/US dollar exchange   CHF/USD...........  CME
 rate.
US Dollar Index................  USDX..............  ICE
                                 CAD/USD...........  CME
                                 CHF/USD...........  CME
                                 EUR/USD...........  CME
                                 GBP/USD...........  CME
                                 JPY/USD...........  CME
                                 SEK/USD...........  CME
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    The daily 4 p.m. E.T. closing value for each Benchmark is published
daily on www.wsj.com. The value of the Benchmarks will be disseminated
by one or more major market data vendors and will be updated at least
every 15 seconds during the Exchange's Core Trading Session. Data
regarding the Benchmarks is also available from the respective
Benchmark provider to subscribers.\15\
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    \14\ Each Benchmark Futures Contract trades electronically for
21 or more hours each trading session, beginning every Sunday
evening and closing for the week on the following Friday evening.
    \15\ ICE Futures U.S., Inc. compiles, maintains, determines and
weights the components of the U.S. Dollar Index. The U.S. Dollar
Index and USDX are trademarks and service marks of ICE Futures U.S.,
Inc. registered in the United States, Great Britain, the European
Union and Japan and used under license. ICE Futures U.S., Inc. is
not engaged in the business of trading in commodities or securities
but operates a derivatives exchange. ICE Futures U.S., Inc.
maintains a Code of Conduct applicable to all personnel that
prohibits disclosure of any confidential information obtained during
the course of one's employment and the use or disclosure of any
material non-public information relating to changes to the
composition of the U.S. Dollar Index or changes to the U.S. Dollar
Index methodology in violation of applicable laws, rules or
regulations.

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Net Asset Value
    According to the Registration Statement, the NAV of each Fund will
be total assets including, but not limited to, all cash and cash
equivalents or other debt securities, less total liabilities, each
determined on the basis of generally accepted accounting principles. In
particular, the NAV will include any unrealized profit or loss on
Benchmark Futures Contracts and other Fund holdings, and any other
credit or debit accruing to a Fund but unpaid or not received by a
Fund.
    The NAV per Share of each Fund will be computed by dividing the
value of the net assets of such Fund (i.e., the value of its total
assets, less total liabilities) by its total number of Shares
outstanding. Expenses and fees will be accrued daily and taken into
account for purposes of determining NAV. The NAV of each Fund will be
calculated by the Administrator and will be determined each business
day as described in the Registration Statement.
Creation and Redemption of Shares
    According to the Registration Statement, the Funds will create and
redeem Shares from time to time, but only in one or more ``Creation
Units.'' A Creation Unit is a block of 50,000 Shares of a Fund.
Creation Units may be created or redeemed only by authorized
participants, as described in the Registration Statement. Except when
aggregated in Creation Units, the Shares will not be redeemable
securities. Authorized participants may pay a fixed and variable
transaction fee in connection with each order to create or redeem a
Creation Unit. Authorized participants may sell the Shares included in
the Creation Units they purchase from the Funds to other investors. On
any business day, an authorized participant may place an order with the
Distributor to create one or more Creation Units. An order to create or
redeem Shares must be placed by 3 p.m. E.T. The total cash payment
required to create each Creation Unit will be the NAV of 50,000 Shares
of the applicable Fund on the purchase order date plus the applicable
transaction fee.
    According to the Registration Statement, the procedures by which an
authorized participant can redeem one or more Creation Units will
mirror the procedures for the purchase of Creation Units. On any
business day, an authorized participant may place an order with the
Distributor to redeem one or more Creation Units. Individual
shareholders may not redeem directly from a Fund.
    By placing a redemption order, an authorized participant agrees to
deliver the Creation Units to be redeemed through DTC's book-entry
system to the applicable Fund not later than noon E.T., on the third
business day immediately following the redemption order date (T+3). The
redemption proceeds from a Fund will consist of the cash redemption
amount. The cash redemption amount will be equal to the NAV of the
number of Creation Unit(s) of such Fund requested in the authorized
participant's redemption order as of the time of the calculation of
such Fund's NAV on the redemption order date, less transaction fees, as
described in the Registration Statement.
Availability of Information Regarding the Shares
    The Web site for the Funds (www.proshares.com) and/or the Exchange,
which are publicly accessible at no charge, will contain the following
information: (a) The current NAV per Share daily and the prior business
day's NAV per Share; (b) calculation of the premium or discount of the
closing market price against the NAV per Share; (c) the prospectus; and
(d) other applicable quantitative information.
    The NAV per Share will be calculated and disseminated daily. One or
more major market data vendors will disseminate for the Funds on a
daily basis information with respect to the corresponding Indicative
Optimized Portfolio Value (``IOPV'') (as discussed below), recent NAV
per Share and Shares outstanding. The Exchange will also make available
on its Web site (www.nyse.com) daily trading volume of the Shares,
closing prices of the Shares, and the NAV per Share. The intraday
pricing and settlement values of the Benchmark Futures Contracts held
by the Funds are also available from the CME, the ICE, and other public
sources or on-line information services such as www.ino.com. Real-time
dissemination of spot pricing for the Australian dollar, Canadian
dollar, Swiss franc, Euro and Japanese yen and data for the U.S. Dollar
Index are available from various major market data vendors. Quotation
and last sale information for the Shares will be available via the
Consolidated Tape Association (``CTA'') high-speed line.
Portfolio Disclosure
    Each Fund's total portfolio composition will be disclosed on the
Funds' Web site or another relevant Web site as determined by the Trust
and/or the Exchange. The Trust will provide Web site disclosure of
portfolio holdings daily and will include, as applicable, the
description and notional value (in U.S. dollars) of the Funds'
investments in Benchmark Futures Contracts and forward contracts, if
any, cash equivalents and amount of cash held in the portfolio of each
Fund. This public Web site disclosure of the portfolio composition of
each Fund will occur at the same time as the disclosure by the Sponsor
of the portfolio composition to authorized participants, so that all
market participants are provided portfolio composition information at
the same time. Therefore, the same portfolio information will be
provided on the public Web site as well as in electronic files provided
to authorized participants. Accordingly, each investor will have access
to the current portfolio composition of each Fund through the Funds'
Web site.
Dissemination of Net Asset Value and Indicative Optimized Portfolio
Value
    The Administrator will calculate and disseminate, once each trading
day, the NAV per Share to market participants. The NAV calculation time
for each Fund will be 4 p.m. E.T. The Exchange will obtain a
representation (prior to listing of the Funds) from the Trust that the
NAV per Share will be calculated daily and made available to all market
participants at the same time. In addition, the Sponsor will cause to
be made available on a daily basis the total payment required to create
each Creation Unit of the applicable Fund on the purchase order date in
connection with the issuance of the respective Shares.
    The IOPV relating to Shares of each Fund will be widely
disseminated by one or more major market data vendors at least every 15
seconds during the Core Trading Session.\16\ The IOPV will be an
indicator of the value of the investments and cash and receivables less
liabilities of a Fund at the time the IOPV is disseminated. The IOPV
will be calculated by NYSE Arca using the prior day's closing net
assets of each Fund as a base and updating throughout the Core Trading
Session changes in the value of Benchmark Futures Contracts and forward
contracts, if any, held by the Fund. The IOPV should not be viewed as
an actual real time update of the NAV because NAV is calculated only
once at the end of each trading day. The IOPV also should not be viewed
as a precise value of the Shares.
---------------------------------------------------------------------------

    \16\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available IOPV
published on CTA or other data feeds.

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

Criteria for Initial and Continued Listing
    The Funds will be subject to the criteria in NYSE Arca Equities
Rule 8.200 and Commentary .02 thereto for initial and continued listing
of the Shares.
    The minimum number of Shares for each Fund to be outstanding at the
start of trading will be 100,000 Shares. The Exchange believes that
this minimum number of Shares for each Fund to be outstanding at the
start of trading is sufficient to provide adequate market liquidity and
to further the objectives of the Funds. The Exchange represents that,
for the initial and continued listing of the Shares, the Funds must be
in compliance with NYSE Arca Equities Rule 5.3 and Rule 10A-3 under the
Act.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. E.T.\17\ The Exchange
has appropriate rules to facilitate transactions in the Shares during
all trading sessions. As provided in NYSE Arca Equities Rule 7.6,
Commentary .03, the minimum price variation (``MPV'') for quoting and
entry of orders in equity securities traded on the NYSE Arca
Marketplace is $0.01, with the exception of securities that are priced
less than $1.00 for which the MPV for order entry is $0.0001.
---------------------------------------------------------------------------

    \17\ See NYSE Arca Equities Rule 7.34 regarding hours for the
NYSE Arca Opening, Core and Late Trading Sessions.
---------------------------------------------------------------------------

    The trading of the Shares will be subject to NYSE Arca Equities
Rule 8.200, Commentary .02(e), which sets forth certain restrictions on
Equity Trading Permit (``ETP'') Holders acting as registered Market
Makers in TIRs to facilitate surveillance. See ``Surveillance'' below
for more information.
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. 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 underlying Benchmark Futures
Contracts, or (2) whether other unusual conditions or circumstances
detrimental to the maintenance of a fair and orderly market are
present. In addition, trading in Shares will be subject to trading
halts caused by extraordinary market volatility pursuant to the
Exchange's ``circuit breaker'' rule \18\ or by the halt or suspension
of trading of the underlying Benchmark Futures Contracts.
---------------------------------------------------------------------------

    \18\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

    The Exchange represents that the Exchange may halt trading during
the day in which an interruption to the dissemination of the IOPV, the
Benchmark value, or the value of the underlying Benchmark Futures
Contracts occurs. If the interruption to the dissemination of the IOPV,
the Benchmark value, or the value of the underlying Benchmark Futures
Contracts persists past the trading day in which it occurred, the
Exchange will halt trading no later than the beginning of the trading
day following the interruption. In addition, if the Exchange becomes
aware that the NAV with respect to the Shares is not disseminated to
all market participants at the same time, it will halt trading in the
Shares until such time as the NAV is available to all market
participants.
Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products, including TIRs, to
monitor trading in the Shares. 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.
    The Exchange's current trading surveillance focuses on detecting
securities trading outside their normal patterns. 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.
    The Exchange can obtain market surveillance information, including
customer identity information, with respect to transactions occurring
on the ICE and the CME in that these markets are members of the
Intermarket Surveillance Group (``ISG''). A list of ISG members is
available at www.isgportal.org.\19\
---------------------------------------------------------------------------

    \19\ The Exchange may obtain information regarding Benchmark
Futures Contracts from exchanges with which the Exchange has entered
into a surveillance sharing agreement or that are ISG members. The
Exchange notes that not all components of the portfolio for the
Funds may trade on markets that are members of ISG or with which the
Exchange has in place a comprehensive surveillance sharing
agreement.
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    The Exchange also has a general policy prohibiting the distribution
of material, non-public information by its employees.
Suitability
    Currently, NYSE Arca Equities Rule 9.2(a) (Diligence as to
Accounts) provides that an ETP Holder, before recommending a
transaction in any security, must have reasonable grounds to believe
that the recommendation is suitable for the customer based on any facts
disclosed by the customer as to its other security holdings and as to
its financial situation and needs. Further, the rule provides, with a
limited exception, that prior to the execution of a transaction
recommended to a non-institutional customer, the ETP Holder must make
reasonable efforts to obtain information concerning the customer's
financial status, tax status, investment objectives, and any other
information that such ETP Holder believes would be useful to make a
recommendation.
    Prior to the commencement of trading, the Exchange will inform its
ETP Holders of the suitability requirements of NYSE Arca Equities Rule
9.2(a) in an Information Bulletin. Specifically, ETP Holders will be
reminded in the Information Bulletin that, in recommending transactions
in these securities, they must have a reasonable basis to believe that
(1) the recommendation is suitable for a customer given reasonable
inquiry concerning the customer's investment objectives, financial
situation, needs, and any other information known by such member, and
(2) the customer can evaluate the special characteristics, and is able
to bear the financial risks, of an investment in the Shares. In
connection with the suitability obligation, the Information Bulletin
will also provide that members must make reasonable efforts to obtain
the following information: (1) The customer's financial status; (2) the
customer's tax status; (3) the customer's investment objectives; and
(4) such other information used or considered to be reasonable by such
member or registered representative in making recommendations to the
customer.
    In addition, FINRA has implemented increased sales practice and
customer margin requirements for FINRA members applicable to leveraged
exchange-traded funds (``ETFs'') (which include the Shares) and options
on leveraged ETFs, as described in FINRA Regulatory Notices 09-31 (June
2009), 09-53 (August 2009) and 09-65 (November 2009) (``FINRA
Regulatory Notices''). ETP Holders that carry customer accounts will be
required to follow the FINRA guidance set forth in the FINRA Regulatory
Notices.
    As disclosed in the Registration Statement, the Funds will seek

leveraged, inverse, or leveraged inverse returns on a daily basis, and
the Funds will not seek to achieve their stated investment objective
over a period of time greater than one day because compounding prevents
the Funds from perfectly achieving such results. Accordingly, results
over periods of time greater than one day typically will not be a
leveraged multiple (+300% or +200%), the inverse (-100%) or a leveraged
inverse multiple (-200% or -300%) of the period return of the
applicable Benchmark and may differ significantly from these multiples.
The Exchange's Information Bulletin regarding the Funds, described
below, will provide information regarding the suitability of an
investment in the Shares, as stated in the Registration Statement.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
ETP Holders in an Information Bulletin of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Bulletin will discuss the following: (1) The risks involved
in trading the Shares during the Opening and Late Trading Sessions when
an updated IOPV will not be calculated or publicly disseminated; (2)
the procedures for purchases and redemptions of Shares in Creation Unit
size (and that Shares are not individually redeemable); (3) NYSE Arca
Equities Rule 9.2(a), which imposes a duty of due diligence on its ETP
Holders to learn the essential facts relating to every customer prior
to trading the Shares; (4) how information regarding the IOPV is
disseminated; (5) the requirement that ETP Holders 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 Bulletin will advise ETP Holders,
prior to the commencement of trading, of the prospectus delivery
requirements applicable to the Funds. The Exchange notes that investors
purchasing Shares directly from the Funds will receive a prospectus.
ETP Holders purchasing Shares from the Funds for resale to investors
will deliver a prospectus to such investors. The Information Bulletin
will reference the FINRA Regulatory Notices regarding sales practice
and customer margin requirements for FINRA members applicable to
leveraged ETFs and options on leveraged ETFs. The Information Bulletin
will also discuss any exemptive, no-action and interpretive relief
granted by the Commission from any rules under the Act.
    In addition, the Information Bulletin will reference that the Funds
are subject to various fees and expenses described in the Registration
Statement. The Information Bulletin will also reference that the
Commodity Futures Trading Commission has regulatory jurisdiction over
the trading of Benchmark Futures contracts traded on U.S. markets.
    The Information Bulletin will also disclose the trading hours of
the Shares of the Funds. The Bulletin will disclose that information
about the Shares of the Funds is publicly available on the Funds' Web
site.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \20\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \20\ 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 NYSE Arca Equities Rule 8.200
and Commentary .02 thereto. The Exchange has in place surveillance
procedures that are adequate to properly monitor trading in the Shares
in all trading sessions and to deter and detect violations of Exchange
rules and applicable federal securities laws. 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. The Benchmark Futures Contracts held by the Funds
are traded on CME and ICE, which are ISG members. Each Fund will seek
to achieve its investment objective by investing under normal market
conditions, in Benchmark Futures Contracts. In the event position
accountability rules or position limits are reached with respect to a
particular Benchmark Futures Contract, the Sponsor, may, in its
commercially reasonable judgment, cause the relevant Fund to obtain
exposure through over-the-counter forward contracts referencing the
particular exchange rate, index or index components, or invest in other
forward contracts not based on the particular exchange rate, if such
instruments tend to exhibit trading prices or returns that correlate
with the Benchmarks or any Benchmark Futures Contract and will further
the investment objective of a Fund. The intra-day futures prices,
closing price and settlement prices of the Benchmark Futures Contracts
held by the Funds are also available from the CME and ICE, as
applicable, automated quotation systems, published or other public
sources, or on-line information services. Quotation and last sale
information for the Shares will be available via CTA. Each Fund's total
portfolio composition will be disclosed on the Funds' Web site or
another relevant Web site.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information will be publicly available regarding
the Funds and the Shares, thereby promoting market transparency. Real-
time dissemination of spot pricing for the Australian dollar, Canadian
dollar, Swiss franc, Euro and Japanese yen and data for the U.S. Dollar
Index is available from various major market data vendors. The NAV per
Share will be calculated daily and made available to all market
participants at the same time. One or more major market data vendors
will disseminate for the Funds on a daily basis information with
respect to the IOPV, recent NAV per Share and Shares outstanding. The
IOPV will be widely disseminated by one or more major market data
vendors at least every 15 seconds during the Core Trading Session.
Trading in Shares of the Funds will be halted if the circuit breaker
parameters in NYSE Arca Equities Rule 7.12 have been reached or because
of market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable. The Exchange may halt trading
during the day in which an interruption to the dissemination of the
IOPV, the Benchmark value or the value of the underlying Benchmark
Futures Contracts occurs. If the interruption to the dissemination of
the IOPV, the Benchmark value or the value of the underlying Benchmark
Futures Contracts persists past the trading day in which it occurred,
the Exchange will halt trading no later than the beginning of the
trading day following the interruption. In addition, if the Exchange
becomes aware that the NAV with respect to the Shares is not
disseminated to all market participants at the same time, it will halt
trading in the Shares until such time as the NAV is available to all
market participants.

Moreover, prior to the commencement of trading, the Exchange will
inform its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares. The
Information Bulletin will also reference the FINRA Regulatory Notices
regarding sales practice and customer margin requirements for FINRA
members applicable to leveraged ETFs and options on leveraged ETFs.
    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
additional types of exchange-traded products 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 Funds' holdings, IOPV, and
quotation and last sale information for the Shares.

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.

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 (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 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-NYSEArca-2012-04 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-NYSEArca-2012-04. 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 Section, 100 F Street,
NE., Washington, DC 20549-1090, on official business days between 10
a.m. and 3 p.m. Copies of the filing will also be available for
inspection and copying at the NYSE's principal office and on its
Internet Web site at www.nyse.com. 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-NYSEArca-2012-04 and should be submitted on or before
February 14, 2012.
    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1290 Filed 1-23-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 119 (Thursday, June 20, 2013)]
[Notices]
[Pages 37272-37273]
[FR Doc No: 2013-14720]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[FMCSA Docket No. FMCSA-2013-0017]

Qualification of Drivers; Exemption Applications; Diabetes
Mellitus

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

ACTION: Notice of final disposition.

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SUMMARY: FMCSA announces its decision to exempt 23 individuals from its
rule prohibiting persons with insulin-treated diabetes mellitus (ITDM)
from operating commercial motor vehicles (CMVs) in interstate commerce.
The exemptions will enable these individuals to operate CMVs in
interstate commerce.

DATES: The exemptions are effective June 20, 2013. The exemptions
expire on June 20, 2015.

FOR FURTHER INFORMATION CONTACT: Elaine M. Papp, Chief, Medical
Programs Division,<PHONE_NUMBER><EMAIL_ADDRESS>FMCSA, Room
W64-224, Department of Transportation, 1200 New Jersey Avenue SE.,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.,
Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access

    You may see all the comments online through the Federal Document
Management System (FDMS) at: http://www.regulations.gov.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov and/or Room W12-140 on the
ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
    Privacy Act: Anyone may search the electronic form of all comments
received into any of DOT's dockets by the name of the individual
submitting the comment (or of the person signing the comment, if
submitted on behalf of an association, business, labor union, or other
entity). You may review DOT's Privacy Act Statement for the Federal
Docket Management System (FDMS) published in the Federal Register on
January 17, 2008 (73 FR 3316).

Background

    On April 26, 2013, FMCSA published a notice of receipt of Federal
diabetes exemption applications from 23 individuals and requested
comments from the public (78 FR 24795). The public comment period
closed on May 28, 2013, and no comments were received.
    FMCSA has evaluated the eligibility of the 23 applicants and
determined that granting the exemptions to these individuals would
achieve a level of safety equivalent to or greater than the level that
would be achieved by complying with the current regulation 49 CFR
391.41(b)(3).

Diabetes Mellitus and Driving Experience of the Applicants

    The Agency established the current requirement for diabetes in 1970
because several risk studies indicated that drivers with diabetes had a
higher rate of crash involvement than the general population. The
diabetes rule provides that ``A person is physically qualified to drive
a commercial motor vehicle if that person has no established medical
history or clinical diagnosis of diabetes mellitus currently requiring
insulin for control'' (49 CFR 391.41(b)(3)).
    FMCSA established its diabetes exemption program, based on the
Agency's July 2000 study entitled ``A Report to Congress on the
Feasibility of a Program to Qualify Individuals with Insulin-Treated
Diabetes Mellitus to Operate in Interstate Commerce as Directed by the
Transportation Act for the 21st Century.'' The report concluded that a
safe and practicable protocol to allow some drivers with ITDM to
operate CMVs is feasible. The September 3, 2003 (68 FR 52441), Federal
Register notice in conjunction with the November 8, 2005 (70 FR 67777),
Federal Register notice provides the current protocol for allowing such
drivers to operate CMVs in interstate commerce.
    These 23 applicants have had ITDM over a range of 1 to 22 years.
These applicants report no severe hypoglycemic reactions resulting in
loss of consciousness or seizure, requiring the assistance of another
person, or resulting in impaired cognitive function that occurred
without warning symptoms, in the past 12 months and no recurrent (2 or
more) severe hypoglycemic episodes in the past 5 years. In each case,
an endocrinologist verified that the driver has demonstrated a
willingness to properly monitor and manage his/her diabetes mellitus,
received education related to diabetes management, and is on a stable
insulin regimen. These drivers report no other disqualifying
conditions, including diabetes-related complications. Each meets the
vision requirement at 49 CFR 391.41(b)(10).
    The qualifications and medical condition of each applicant were
stated and discussed in detail in the April 26, 2013, Federal Register
notice and they will not be repeated in this notice.

Discussion of Comments

    FMCSA received no comments in this proceeding.

Basis for Exemption Determination

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may grant an exemption
from the diabetes requirement in 49 CFR 391.41(b)(3) if the exemption
is likely to achieve an equivalent or greater level of safety than
would be achieved without the exemption. The exemption allows the
applicants to operate CMVs in interstate commerce.
    To evaluate the effect of these exemptions on safety, FMCSA
considered medical reports about the applicants' ITDM and vision, and
reviewed the treating endocrinologists' medical opinion related to the
ability of the driver to safely operate a CMV while using insulin.
    Consequently, FMCSA finds that in each case exempting these
applicants from the diabetes requirement in 49 CFR 391.41(b)(3) is
likely to achieve a level of safety equal to that existing without the
exemption.

Conditions and Requirements

    The terms and conditions of the exemption will be provided to the
applicants in the exemption document and they include the following:
(1) That each individual submit a quarterly monitoring checklist
completed by the treating endocrinologist as well as an annual
checklist with a comprehensive medical evaluation; (2) that each
individual reports within 2 business days of occurrence, all episodes
of severe hypoglycemia, significant complications, or inability to
manage diabetes; also, any involvement in an accident or any other
adverse event in a CMV or personal vehicle, whether or not it is
related to an episode of hypoglycemia; (3) that each individual provide
a copy of the ophthalmologist's or optometrist's report to the medical
examiner at the time of the annual medical examination; and (4) that
each individual provide a copy of the annual medical certification to
the employer for retention in the driver's qualification file, or keep
a copy in his/her driver's qualification file if he/she is self-
employed. The driver must also have a copy of the certification when
driving, for presentation to a duly authorized

Federal, State, or local enforcement official.

Conclusion

    Based upon its evaluation of the 23 exemption applications, FMCSA
exempts Willie J. Brock (MO), Kenneth L. Bunn (OH), Robert S. Fow (AR),
Kevin J. Fuller (MI), Eliazar M. Gonzalez (WA), John M. Hawk (MN),
Michael J. Makwinski (NJ), Ralph W. Middaugh (PA), Michael J. Moynihan
(NH), Juan F. Ortega (VA), Fernand L. Poulin (NH), James A. Pruitt
(GA), Tony E. Pullen (IN), Michael M. Sanchez (NM), Nathaniel Scales,
Jr. (DE), Ronald L. Schmidt (IL), Michael Schrock, III (TN), Jimmy W.
Scroggins (AR), Leonard R. Smith (WA), Mark A. Stromberg (MN), Daniel
J. Wagner (TX), Andrew J. White (IA), and Michael D. Ziegler (PA) from
the ITDM requirement in 49 CFR 391.41(b)(3), subject to the conditions
listed under ``Conditions and Requirements'' above.
    In accordance with 49 U.S.C. 31136(e) and 31315 each exemption will
be valid for two years unless revoked earlier by FMCSA. The exemption
will be revoked if the following occurs: (1) The person fails to comply
with the terms and conditions of the 1/exemption; (2) the exemption has
resulted in a lower level of safety than was maintained before it was
granted; or (3) continuation of the exemption would not be consistent
with the goals and objectives of 49 U.S.C. 31136(e) and 31315. If the
exemption is still effective at the end of the 2-year period, the
person may apply to FMCSA for a renewal under procedures in effect at
that time.

    Issued on: June 12, 2013.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2013-14720 Filed 6-19-13; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register: March 8, 2006 (Volume 71, Number 45)]
[Notices]
[Page 11611-11612]
[DOCID:fr08mr06-70]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of Application Accepted for Filing; Ready for
Environmental Analysis; and Soliciting Motions To Intervene, Protests,
Comments on Application and Settlement Agreement; and Recommendations,
Terms and Conditons and Prescriptions

February 28, 2006.
    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: New Major License and approval of
Settlement Agreement.
    b. Project No.: 2170-029.
    c. Date Filed: Application--April 22, 2005; Settlement Agreement
August 31, 2005.
    d. Applicant: Chugach Electric Association.
    e. Name of Project Cooper Lake Hydroelectric Project.
    f. Location: On Cooper Lake, approximately 4.8 river miles from the
mouth of Cooper Creek in south central Alaska, 55 air miles south of
Anchorage.
    g. Filed Pursuant to: Federal Power Act 16 U.S.C. 791(a)-825(r) and
Rule 602 of the Commission's Rules of Practice and Procedure, 18 CFR
385.602.
    h. Applicant Contact: Burke Wick, Chugach Electric Association,
5601 Minnesota Drive, Anchorage, Alaska 99519.<PHONE_NUMBER>.
    i. FERC Contact: David Turner<PHONE_NUMBER> or
<EMAIL_ADDRESS>
    j. Deadline for filing motions to intervene, protests, comments on
application and settlement agreement, recommendations, terms and
conditions and prescriptions: 60 days from the issuance date of this
notice; Applicant reply comments are due 105 days from issuance date of
this notice.
    All documents (original and eight copies) should be filed with:
Magalie R. Salas, Secretary, Federal Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426.
    The Commission's Rules of Practice require all intervenors filing
documents with the Commission to serve a copy of that document on each
person on the official service list for the project. Further, if an
intervenor files comments or documents with the Commission relating to
the merits of an issue that may affect the responsibilities of a
particular resource agency, they must also serve a copy of the document
on that resource agency.

    Motions to intervene and protests may be filed electronically via
the Internet in lieu of paper. The Commission strongly encourages
electronic filings. See 18 CFR 385.2001(a)(1)(iii) and the instructions
on the Commission's Web site (http://www.ferc.gov) under the ``e-

Filing'' link.
    k. This application has been accepted, and is ready for
environmental analysis.
    l. The existing project consists of: (1) The Cooper Lake Dam, a 52-
foot-high earth-and-rockfilled structure; (2) the 2,620-acre, 5-mile-
long Cooper Lake Reservoir; (3) two vertical-shaft Francis turbines
with a total capacity of 19.38 megawatts; (4) an intake structure
located on Cooper Lake; (5) a tunnel and penstock extending 10,686 feet
east from the intake to the powerhouse; a (6) 6.3-mile-long, 69-kV
transmission line from the powerhouse to Quartz Creek Substation; and
90.4-mile-long, 115-kV transmission line from the Quartz Creek
Substation to Anchorage.
    A new dam is proposed to be constructed on Stetson Creek to divert
water into Cooper Lake to provide flow releases for fish habitat
improvements in Cooper Creek.
    m. Chugach Electric filed on August 31, 2005, a Settlement
Agreement on behalf of itself, and the U.S. Forest Service, U.S. Fish
and Wildlife Service, National Park Service, National Marine Fisheries
Service, Kenaitze Indian Tribe, Alaska Department of Fish and Game,
Alaska Department of Natural Resources, The Fish for Cooper Creek
Coalition, Alaska Flyfishers Association, and the Alaska Center for the
Environment. The purpose of the Settlement Agreement is to resolve
among the signatories all issues associated with issuance of a new
license for the project regarding economic and power considerations,
water quality and temperature, instream flows, fish habitat, visual
resources, recreation and cultural resources. The Parties to the
Settlement jointly request the Commission accept and incorporate into
any new license for the project, the protection, mitigation, and
enhancement measures and proposed license articles stated in the
Settlement Agreement.
    n. A copy of the application and settlement agreement is on file
with the Commission and is available for public inspection. This filing
is available for review at the Commission in the Public Reference Room
or may be viewed on the Commission's Web site at http://www.ferc.gov

using the ``eLibrary'' link. Enter the docket number excluding the last
three digits in the docket number field to access the document. For
assistance, contact FERC online support at<EMAIL_ADDRESS>or toll-free at 1-866-208-3676, or for Text Telephone (TTY) call (202)
502-8659. A copy is also available for inspection and reproduction at
the address in item h above.
    o. Anyone may submit a protest or a motion to intervene in
accordance with the requirements of Rules of Practice and Procedure, 18
CFR 385.210, 385.211, and 385.214. In determining the appropriate
action to take, the Commission will consider all protests filed, but
only those who file a motion to intervene in accordance with the
Commission's Rules may become a party to the proceeding. Any protests
or motions to intervene must be received on or before the specified
deadline date for the particular application.
    All filings must (1) bear in all capital letters the title
``PROTEST'' or ``MOTION TO INTERVENE;'' (2) set forth in the heading
the name of the applicant and the project number of the application to
which the filing responds; (3) furnish the name, address, and telephone
number of the person protesting or intervening; and (4) otherwise
comply with the requirements of 18 CFR 385.2001 through 385.2005. All
comments, recommendations, terms and conditions or prescriptions must
set forth their evidentiary basis and otherwise comply with the
requiremens of 18 CFR 4.34(b). Agencies may obtain copies of the
application directly from the applicant. A copy of any protest or
motion to intervene must be served upon each representative of the
applicant specified in the particular application. A copy of all other
filings in reference to this application must be accompanied by proof
of service on all persons listed in the service list prepared by the
Commission in this proceeding, in accordance with 18 CFR 4.34(b) and
385.2010.
    You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp
 to be notified via e-mail of new filings and

issuances related to this or other pending projects. For assistance,
contact FERC Online Support.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-3201 Filed 3-7-06; 8:45 am]

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[Federal Register Volume 85, Number 204 (Wednesday, October 21, 2020)]
[Rules and Regulations]
[Pages 66873-66876]
[FR Doc No: 2020-23280]

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

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

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

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

Federal Register / Vol. 85, No. 204 / Wednesday, October 21, 2020 /
Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0918; Project Identifier MCAI-2020-01335-T;
Amendment 39-21299; AD 2020-22-03]
RIN 2120-AA64

Airworthiness Directives; Airbus Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for all
Airbus SAS Model A330-200, -200 Freighter, and -300 series airplanes.
This AD was prompted by a report that during a certification exercise,
it was identified that there was a risk of an engine bleed system over-
temperature, without the engine bleed valve closing; the associated
engine bleed valve should automatically close. This AD requires
revising the existing airplane flight manual (AFM) to incorporate
procedures to be applied if an engine bleed over-temperature occurs
when the associated engine bleed valve is jammed open, and provides for
the optional embodiment of updated flight warning computer (FWC)
software, which would terminate the AFM revision, as specified in a
European Union Aviation Safety Agency (EASA), which is incorporated by
reference. The FAA is issuing this AD to address the unsafe condition
on these products.

DATES: This AD becomes effective November 5, 2020.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of November 5,
2020.
    The FAA must receive comments on this AD by December 7, 2020.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For material incorporated by reference (IBR) in this AD, contact
the EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49
221 8999 000; email<EMAIL_ADDRESS>internet www.easa.europa.eu.
You may find this IBR material on the EASA website at https://ad.easa.europa.eu. You may view this IBR material at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>. It is also available in the AD
docket on the internet at https://www.regulations.gov by searching for
and locating Docket No. FAA-2020-0918.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0918; 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 AD, any comments received, and other information. The street
address for Docket Operations is listed above. Comments will be
available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Vladimir Ulyanov, Aerospace Engineer,
Large Aircraft Section, International Validation Branch, FAA, 2200
South 216th St., Des Moines, WA 98198; telephone and fax:<PHONE_NUMBER>;
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    The EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2020-0205, dated September 24, 2020
(``EASA AD 2020-0205'') (also referred to as the Mandatory Continuing
Airworthiness Information, or ``the MCAI''), to correct an unsafe
condition for all Airbus SAS Model A330-200, -200 Freighter, and -300
series airplanes.
    This AD was prompted by a report that during a certification
exercise, it was identified that there was a risk of an engine bleed
system over-temperature, without the engine bleed valve closing; the
associated engine bleed valve should automatically close. The FAA is
issuing this AD to address the possibility of a jammed engine bleed
valve, which could lead to damage of the bleed manifold and the ducts
downstream of the engine bleed system, exposure of the surrounding
structure to heat stress, and possible reduced structural integrity of
the airplane. See the MCAI for additional background information.

Related IBR Material Under 1 CFR Part 51

    EASA AD 2020-0205 describes procedures for amending the applicable
AFM to incorporate procedures to be applied if an engine bleed over-
temperature occurs when the associated engine bleed valve is jammed
open. EASA AD 2020-0205 also specifies that embodiment of updated FWC
software would eliminate the need for the AFM amendment. This material
is reasonably available because the interested parties have access to
it through their normal course of business or by the means identified
in the ADDRESSES section.

FAA's Determination

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to the FAA's bilateral agreement with the State of Design Authority,
the FAA has been notified of the unsafe condition described in the MCAI
referenced above. The FAA is issuing this AD because the FAA evaluated
all pertinent information and determined the unsafe condition exists
and is likely to exist or develop on other products of the same type
design.

Requirements of This AD

    This AD requires accomplishing the actions specified in EASA AD
2020-0205, described previously, as

incorporated by reference, except for any differences identified as
exceptions in the regulatory text of this AD.

Explanation of Required Compliance Information

    In the FAA's ongoing efforts to improve the efficiency of the AD
process, the FAA initially worked with Airbus and EASA to develop a
process to use certain EASA ADs as the primary source of information
for compliance with requirements for corresponding FAA ADs. The FAA has
since coordinated with other manufacturers and civil aviation
authorities (CAAs) to use this process. As a result, EASA AD 2020-0205
is incorporated by reference in this final rule. This AD, therefore,
requires compliance with EASA AD 2020-0205 in its entirety, through
that incorporation, except for any differences identified as exceptions
in the regulatory text of this AD. Using common terms that are the same
as the heading of a particular section in the EASA AD does not mean
that operators need comply only with that section. For example, where
the AD requirement refers to ``all required actions and compliance
times,'' compliance with this AD requirement is not limited to the
section titled ``Required Action(s) and Compliance Time(s)'' in the
EASA AD. Service information specified in EASA AD 2020-0205 that is
required for compliance with EASA AD 2020-0205 is available on the
internet at https://www.regulations.gov by searching for and locating
Docket No. FAA-2020-0918.

Justification for Immediate Adoption and Determination of the Effective
Date

    Section 553(b)(3)(B) of the Administrative Procedure Act (APA) (5
U.S.C. 551 et seq.) authorizes agencies to dispense with notice and
comment procedures for rules when the agency, for ``good cause,'' finds
that those procedures are ``impracticable, unnecessary, or contrary to
the public interest.'' Under this section, an agency, upon finding good
cause, may issue a final rule without providing notice and seeking
comment prior to issuance. Further, section 553(d) of the APA
authorizes agencies to make rules effective in less than thirty days,
upon a finding of good cause.
    An unsafe condition exists that requires the immediate adoption of
this AD without providing an opportunity for public comments prior to
adoption. The FAA has found that the risk to the flying public
justifies waiving notice and comment prior to adoption of this rule
because there is a possibility of a jammed engine bleed valve, which
could lead to damage of the bleed manifold and the ducts downstream of
the engine bleed system and exposure of the surrounding structure to
heat stress, and possibly result in reduced structural integrity of the
airplane. In addition, the compliance time for the required action is
shorter than the time necessary for the public to comment and for
publication of the final rule. Therefore this rule must be issued
immediately, to ensure the safety of the flight crews conducting such
flights. Accordingly, notice and opportunity for prior public comment
are impracticable and contrary to the public interest pursuant to 5
U.S.C. 553(b)(3)(B).
    In addition, the FAA finds that good cause exists pursuant to 5
U.S.C. 553(d) for making this amendment effective in less than 30 days,
for the same reasons the FAA found good cause.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety and was not preceded by notice and an opportunity for public
comment. However, the FAA invites you to send any written comments,
data, or views about this AD. 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 submit only one
copy of the comments. Send your comments to an address listed under the
ADDRESSES section. Include ``Docket No. FAA-2020-0918; Project
Identifier MCAI-2020-01355-T'' at the beginning of your comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, as well
as a report summarizing each substantive public contact with FAA
personnel concerning this AD. The FAA will consider all comments
received by the closing date for comments. The FAA may amend this AD
because of those comments.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this AD contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this AD, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this AD. Submissions containing CBI should be sent to
Vladimir Ulyanov, Aerospace Engineer, Large Aircraft Section,
International Validation Branch, FAA, 2200 South 216th St., Des Moines,
WA 98198; telephone and fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Any commentary that the FAA receives which is
not specifically designated as CBI will be placed in the public docket
for this rulemaking.

Regulatory Flexibility Act (RFA)

    The requirements of the RFA do not apply when an agency finds good
cause pursuant to 5 U.S.C. 553 to adopt a rule without prior notice and
comment. Because the FAA has determined that it has good cause to adopt
this rule without notice and comment, RFA analysis is not required.

Costs of Compliance

    The FAA estimates that this AD affects 105 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
                          Labor cost                              Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
1 work-hour x $85 per hour = $85.............................              $0              $85           $8,925
----------------------------------------------------------------------------------------------------------------

              Estimated Costs for Optional Software Update
------------------------------------------------------------------------
                                                             Cost per
              Labor cost                   Parts cost        product
------------------------------------------------------------------------
2 work-hours x $85 per hour = $170....              $0             $170
------------------------------------------------------------------------

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.
    The FAA is 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

    The FAA determined that 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, and
    (2) Will not affect intrastate aviation in Alaska.

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):

2020-22-03 Airbus SAS: Amendment 39-21299; Docket No. FAA-2020-0918;
Project Identifier MCAI-2020-01335-T.

(a) Effective Date

    This AD becomes effective November 5, 2020.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all Airbus SAS Model airplanes, certificated
in any category, as identified in paragraphs (c)(1) though (3) of
this AD.
    (1) Model A330-201, -202, -203, -223, and -243 airplanes.
    (2) Model A330-223F and -243F airplanes.
    (3) Model A330-301, -302, -303, -321, -322, -323, -341, -342,
and -343 airplanes.

(d) Subject

    Air Transport Association (ATA) of America Code 75, Air.

(e) Reason

    This AD was prompted by a report that during a certification
exercise, it was identified that there was a risk of an engine bleed
system over-temperature, without the engine bleed valve closing; the
associated engine bleed valve should automatically close. The FAA is
issuing this AD to address the possibility of a jammed engine bleed
valve, which could lead to damage of the bleed manifold and the
ducts downstream of the engine bleed system and exposure of the
surrounding structure to heat stress, and possibly result in reduced
structural integrity of the airplane.

(f) Compliance

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

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, EASA AD 2020-0205, dated September 24, 2020 (``EASA
AD 2020-0205'').

 (h) Exceptions to EASA AD 2020-0205

    (1) Where EASA AD 2020-0205 refers to its effective date, this
AD requires using the effective date of this AD.
    (2) The ``Remarks'' section of EASA AD 2020-0205 does not apply
to this AD.

(i) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Large Aircraft Section, International Validation 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 responsible Flight
Standards Office, as appropriate. If sending information directly to
the Large Aircraft Section, International Validation Branch, send it
to the attention of the person identified in paragraph (j) of this
AD. Information may be emailed to<EMAIL_ADDRESS>
Before using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, Large Aircraft
Section, International Validation Branch, FAA; or EASA; or Airbus's
EASA Design Organization Approval (DOA). If approved by the DOA, the
approval must include the DOA-authorized signature.
    (3) Required for Compliance (RC): For any service information
referenced in EASA AD 2020-0205 that contains RC procedures and
tests: Except as required by paragraph (i)(2) of this AD, RC
procedures and tests must be done to comply with this AD; any
procedures or tests that are not identified as RC are recommended.
Those procedures and tests that are not identified 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 procedures and tests identified as
RC can be done and the airplane can be put back in an airworthy
condition. Any substitutions or changes to procedures or tests
identified as RC require approval of an AMOC.

(j) Related Information

    For more information about this AD, contact Vladimir Ulyanov,
Aerospace Engineer, Large Aircraft Section, International Validation
Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone
and fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
(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 this AD specifies otherwise.
    (i) European Union Aviation Safety Agency (EASA) AD 2020-0205,
dated September 24, 2020.
    (ii) [Reserved]
    (3) For EASA AD 2020-0205, contact the EASA, Konrad-Adenauer-
Ufer 3, 50668 Cologne, Germany; telephone +49 221 8999 000; email
<EMAIL_ADDRESS>Internet www.easa.europa.eu. You may find this
EASA AD on the EASA website at https://ad.easa.europa.eu.
    (4) You may view this material at the FAA, Airworthiness
Products Section, Operational Safety Branch, 2200 South 216th St.,
Des Moines, WA. For information on the availability of this material
at the FAA, call<PHONE_NUMBER>. This material may be found in the AD
docket on the internet at https://www.regulations.gov by searching
for and locating Docket No. FAA-2020-0918.
    (5) You may view this material that is incorporated by reference
at the National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, email
<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on October 13, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-23280 Filed 10-20-20; 8:45 am]
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