[Federal Register Volume 86, Number 102 (Friday, May 28, 2021)]
[Notices]
[Pages 28918-28921]
[FR Doc No: 2021-11290]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91976; File No. SR-ISE-2021-11]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend ISE's
Pricing Schedule at Options 7, Section 5, for NQX Index Options Fees
and Rebates for Regular and Complex Orders

May 24, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 11, 2021, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, 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 amend ISE's Pricing Schedule at Options 7,
Section 5, Index Options Fees and Rebates.
    The Exchange originally filed the proposed pricing change on April
30, 2021 (SR-ISE-2021-10). On May 11, 2021, the Exchange withdrew that
filing and submitted this filing.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/ise/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, the Exchange 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 these 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 aspects of such
statements.

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

1. Purpose
    The Exchange proposes to amend Options 7, Section 5, Index Options
Fees and Rebates. Specifically, the Exchange proposes to amend Part B,
NQX Index Options Fees and Rebates for Regular and Complex Orders. NQX
is a proprietary index based on \1/5\ the value of the Nasdaq-100
Index.
    Currently, the fees and rebates assessed for NQX regular and
complex orders are as follows:

------------------------------------------------------------------------
                                            Maker fee/      Taker fee/
           Market participant                 rebate          rebate
------------------------------------------------------------------------
Market Maker............................         ($0.25)           $0.00
Market Maker (for orders sent by                  (0.25)            0.00
 Electronic Access Members).............
Non-Nasdaq ISE Market Maker (FarMM).....            0.25            0.25
Firm Proprietary/Broker-Dealer..........            0.25            0.25
Professional Customer...................            0.25            0.25

Priority Customer.......................            0.00            0.00
------------------------------------------------------------------------

    NQX Taker Fees apply to the originating and contra side of Crossing
Orders and to Responses to Crossing Orders. The Exchange proposes to
amend this pricing.
    First, the Exchange proposes to amend the NQX regular and complex
order pricing for Market Makers,\3\ including for orders sent by
Electronic Access Members, to remove the current Maker Rebates of $0.25
per contract. The Exchange proposes to instead assess a Maker Fee of
$0.25 per contract to Market Makers, including for orders sent by
Electronic Access Members, similar to other Non-Priority Customers \4\
in NQX. Since no market participants would be subject to an NQX Maker
Rebate with the removal of the Market Maker rebates, the Exchange also
proposes to amend the column header from ``Maker Fee/Rebate'' to
``Maker Fee.'' The Exchange also proposes to amend the column header
``Taker Fee/Rebate'' to ``Taker Fee'' as there are no Taker Rebates.
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    \3\ The term Market Makers refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Options 1,
Section 1(a)(21). The term Competitive Market Maker means a Member
that is approved to exercise trading privileges associated with CMM
Rights. See Options 1, Section 1(a)(12). The term Primary Market
Maker means a Member that is approved to exercise trading privileges
associated with PMM Rights. See Options 1, Section 1(a)(36).
    \4\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in Nasdaq ISE Options 1,
Section 1(a)(37). Unless otherwise noted, when used in this Pricing
Schedule the term ``Priority Customer'' includes ``Retail'' as
defined below. A Non-Priority Customer would include a Market Maker,
Non-Nasdaq ISE Market Maker (FarMM), Firm Proprietary/Broker-Dealer,
and Professional Customer.
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    Second, the Exchange proposes to amend the current regular and
complex order NQX Taker Fees for Market Makers, including for orders
sent by Electronic Access Members, from $0.00 per contract to $0.25 per
contract.
    With this proposal, ISE would uniformly assess a $0.25 per contract
NQX Maker and Taker Fee to all market participants for regular and
complex orders, except Priority Customers. Priority Customers will
continue to pay no NQX Maker or Taker Fee.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility,
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The proposed changes to the Pricing Schedule are reasonable in
several respects. As a threshold matter, the Exchange is subject to
significant competitive forces in the market for options securities
transaction services that constrain its pricing determinations in that
market. The fact that this market is competitive has long been
recognized by the courts. In NetCoalition v. Securities and Exchange
Commission, the D.C. Circuit stated as follows: ``[n]o one disputes
that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .'' \7\
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    \7\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \8\
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    \8\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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    Numerous indicia demonstrate the competitive nature of this market.
For example, clear substitutes to the Exchange exist in the market for
options security transaction services. The Exchange is only one of
sixteen options exchanges to which market participants may direct their
order flow. Within this environment, market participants can freely and
often do shift their order flow among the Exchange and competing venues
in response to changes in their respective pricing schedules. As such,
the proposal represents a reasonable attempt by the Exchange to
increase its liquidity and market share relative to its competitors.
    The Exchange's proposal to amend its NQX regular and complex order
pricing for Market Makers, including for orders sent by Electronic
Access Members, to remove the $0.25 per contract Maker Rebate and
instead assess a $0.25 per contract Maker Fee, and start assessing a
$0.25 per contract Taker Fee \9\ is reasonable. The Exchange initially
paid NQX Maker Rebates to Market Makers, including for orders sent by
Electronic Access Members, to encourage Market Maker activity in NQX
and offset the NQX license surcharge of $0.25 per contract, which is
paid by all market participants. The Exchange desired to incentivize
Market Makers to provide liquidity in the new product during the
initial months of trading when it initially offered Market Makers these
incentives in 2018.\10\ As NQX has been trading for over 2 years at
this time, the Exchange proposes to align the pricing for Market
Makers, including for orders sent by Electronic Access Members, with
other Non-Priority Customer participants that currently pay $0.25 per
contract Maker and Taker Fees. Also, the proposed pricing aligns with
pricing for the Nasdaq-100 Index (``NDX''),

another proprietary product, in that Non-Priority Customers are
uniformly assessed a transaction fee for regular orders, regardless of
whether they are making or taking liquidity, and Priority Customers are
not assessed any fees. The $0.25 per contract fee is reasonable as NQX
is an exclusively listed product on ISE only. Also, the $0.25 per
contract fee is well within the range of amounts assessed for NDX
options, another Exchange proprietary product which assesses a $0.75
per contract fee to Non-Priority Customers. The lower fee amount of
$0.25 per contract for NQX options as compared to $0.75 per contract
for NDX options is reasonable because NQX options is based on \1/5\ of
the value of the Nasdaq-100 Index whereas NDX options are based on the
full value of the Nasdaq-100 Index, and the Exchange therefore seeks to
assess corresponding reduced fees for NQX options. The Exchange notes
that market participants are offered an opportunity to either transact
NDX options, the Nasdaq 100 Micro Index Options or ``XND,'' \11\ or
PowerShares QQQ Trust (``QQQ'') options.\12\ Although all of the
products are based on the Nasdaq-100 Index, and collectively they offer
various notional sizes as well as different fees.\13\ These products
all offer exposure to the Nasdaq-100 Index which is different from
exposure to competing products. Finally, pricing by symbol is a common
practice on many U.S. options exchanges as a means to incentivize order
flow to be sent to an exchange for execution in particular products.
Other options exchanges price by symbol.\14\
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    \9\ Market Makers, including for orders sent by Electronic
Access Members, currently pay no NQX regular or complex order Taker
Fees.
    \10\ See Securities Exchange Act Release No. 83639 (July 16,
2018), 83 FR 34625 (July 20, 2018) (SR-ISE-2018-61) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
the Exchange's Schedule of Fees To Add Establish Fees and Rebates
for NQX Options and Make Several Clarifying Changes).
    \11\ XND is based on 1/100th of the value of the Nasdaq-100
Index.
    \12\ QQQ is an exchange-traded fund based on the Nasdaq-100
Index. Products such as QQQ provides market participants with a
variety of choices in selecting the product they desire to utilize
to transact the Nasdaq-100 Index as QQQ options overlie the same
index as NDX, namely the Nasdaq-100 Index. This relationship between
QQQ options and NDX options is similar to the relationship between
RUT and the iShares Russell 2000 Index (``IWM''), which is the ETF
on RUT.
    \13\ See ISE Options 7, Section 3 for simple orders and Options
7, Section 4 for complex orders for pricing on QQQ options. XND
options pricing is located within ISE Options 7, Section 5A. The
applicable ISE complex order fees for Non-Select Symbols in Options
7, Section 4 apply to NDX options. See also Nasdaq Phlx LLC
(``Phlx'') Options 7, Section 4 for XND pricing. XND is currently
listed only on Phlx.
    \14\ See pricing for Russell 2000 Index (``RUT'') on Cboe
Exchange, Inc.'s Fees Schedule.
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    The Exchange's proposal to amend its NQX regular and complex order
pricing for Market Makers, including for orders sent by Electronic
Access Members, to remove the $0.25 per contract Maker Rebate and
instead assess a $0.25 per contract Maker Fee, and start assessing a
$0.25 per contract Taker Fee is equitable and not unfairly
discriminatory as ISE would uniformly assess a $0.25 per contract fee
to all market participants, except Priority Customers. Priority
Customers will continue to pay no Maker or Taker Fee. All other Non-
Priority Customers would uniformly be assessed a $0.25 per contract fee
regardless of whether the Non-Priority Customer is making or taking
liquidity. The Exchange's proposal to amend the column headers from
``Maker Fee/Rebate'' to ``Maker Fee'' and ``Taker Fee/Rebate'' to
``Taker Fee'' is reasonable, equitable and not unfairly discriminatory
as no Member would be subject to a Maker Rebate with the removal of the
rebates for Market Makers, including for orders sent by Electronic
Access Members and there are no Taker Rebates today.

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 not necessary or appropriate in
furtherance of the purposes of the Act.
    In terms of intra-market competition, the Exchange does not believe
that the proposed changes will place any category of market participant
at a competitive disadvantage. Overall, the Exchange's proposal is
designed to incentivize participants to bring additional order flow to
the Exchange, and create a more active and quality market in NQX. While
Market Makers would pay a fee for either making or taking liquidity in
NQX with this proposal, the Exchange believes that Market Makers will
continue to be incentivized to offer liquidity in this product which is
based on the Nasdaq-100 Index and offers investors similar strategies
for investors. Market Makers on ISE are the only Market Makers making a
market in NQX. Also, the Exchange would uniformly assess a $0.25 per
contract NQX fee to all market participants for regular and complex
orders, except Priority Customers, regardless of whether the Non-
Priority Customer is making or taking liquidity.
    In terms of inter-market competition, the Exchange notes that it
operates in a highly competitive market where other options markets may
create products similar to those offered on ISE. There are other
products today which are similarly based on the Nasdaq-100 Index.
Market participants are offered an opportunity to either transact NDX,
XND, or QQQ options. Although all of the products are based on the
Nasdaq-100 Index and offer various notional sizes as well as different
fees.\15\ These products all offer exposure to the Nasdaq-100 Index
which is different from exposure to competing products.
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    \15\ See ISE Options 7, Section 3 for simple orders and Options
7, Section 4 for Complex Orders for pricing on QQQ options. XND
options pricing is located within Options 7, Section 5A. The
applicable Complex Order fees for Non-Select Symbols in Options 7,
Section 4 apply to NDX options. See also Nasdaq Phlx LLC (``Phlx'')
Options 7, Section 4 for XND pricing. XND is currently listed only
on Phlx.
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    The Exchange's proposal to amend the column headers from ``Maker
Fee/Rebate'' to ``Maker Fee'' and ``Taker Fee/Rebate'' to ``Taker Fee''
does not impose an undue burden on competition as no Member would be
subject to a Maker Rebate with the removal of the rebates for Market
Makers, including Market Maker (for orders sent by Electronic Access
Members) and there are no Taker Rebates today.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\16\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is: (i) Necessary or appropriate in the public
interest; (ii) for the protection of investors; or (iii) otherwise in
furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
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    \16\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-ISE-2021-11 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE-2021-11. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-ISE-2021-11 and should be submitted on
or before June 18, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-11290 Filed 5-27-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Pages 77158-77160]
[FR Doc No: 2022-27323]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2022-0036]

Qualification of Drivers; Exemption Applications; Hearing

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

ACTION: Notice of final disposition.

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SUMMARY: FMCSA announces its decision to exempt 13 individuals from the
hearing requirement in the Federal Motor Carrier Safety Regulations
(FMCSRs) to operate a commercial motor vehicle (CMV) in interstate
commerce. The exemptions enable these hard of hearing and deaf
individuals to operate CMVs in interstate commerce.

DATES: The exemptions are applicable on November 25, 2022. The
exemptions expire on November 25, 2024.

FOR FURTHER INFORMATION CONTACT: Ms. Christine A. Hydock, Chief,
Medical Programs Division, FMCSA, DOT, 1200 New Jersey Avenue SE, Room
W64-224, Washington, DC 20590-0001,<PHONE_NUMBER>,
[email protected]. Office hours are from 8:30 a.m. to 5 p.m., ET,
Monday through Friday, except Federal holidays. If you have questions
regarding viewing or submitting material to the docket, contact Dockets
Operations,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Public Participation

A. Viewing Comments

    To view comments go to www.regulations.gov. Insert the docket
number, FMCSA-2022-0036, in the keyword box, and click ``Search.''
Next, sort the results by ``Posted (Newer-Older),'' choose the first
notice listed, and click ``Browse Comments.'' If you do not have access
to the internet, you may view the docket online by visiting Dockets
Operations in Room W12-140 on the ground floor of the DOT West
Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between
9 a.m. and 5 p.m., ET, Monday through Friday, except Federal holidays.
To be sure someone is there to help you, please call<PHONE_NUMBER> or
(202) 366-9826 before visiting Dockets Operations.

B. Privacy Act

    In accordance with 49 U.S.C. 31315(b)(6), DOT solicits comments
from the public on the exemption requests. DOT posts these comments,
without edit, including any personal information the commenter
provides, to www.regulations.gov. As described in the system of records
notice DOT/ALL 14 (Federal Docket Management System (FDMS)), which can
be reviewed at https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices, the comments are searchable by the
name of the submitter.

II. Background

    On October 14, 2024, FMCSA published a notice announcing receipt of
applications from 13 individuals requesting an exemption from the
hearing requirement in 49 CFR 391.41(b)(11) to operate a CMV in
interstate commerce and requested comments from the public (87 FR 198).
The public comment period ended on November 14, 2022, and two comments
were received.
    FMCSA has evaluated the eligibility of these applicants and
determined that granting exemptions to these individuals would likely
achieve a level of safety equivalent to, or greater than, the level
that would be achieved by complying with Sec.  391.41(b)(11).
    The physical qualification standard for drivers regarding hearing
found in Sec.  391.41(b)(11) states that a person is physically
qualified to drive a CMV if that person first perceives a forced
whispered voice in the better ear at not less than 5 feet with or
without the use of a hearing aid or, if tested by use of an audiometric
device, does not have an average hearing loss in the better ear greater
than 40 decibels at 500 Hz, 1,000 Hz, and 2,000 Hz with or without a
hearing aid when the audiometric device is calibrated to American
National Standard (formerly ASA Standard) Z24.5--1951.
    This standard was adopted in 1970 and was revised in 1971 to allow
drivers to be qualified under this standard while wearing a hearing aid
(35 FR 6458, 6463 (Apr. 22, 1970) and 36 FR 12857 (July 8, 1971),
respectively).

III. Discussion of Comments

    FMCSA received two comments in this proceeding. Both comments were
submitted anonymously inquiring about how long it will take for them to
receive their exemptions. Exemptions are granted and mailed to the
applicants mentioned in this notice upon publication in the Federal
Register.

IV. Basis for Exemption Determination

    Under 49 U.S.C. 31136(e) and 31315(b), FMCSA may grant an exemption
from the FMCSRs for no longer than a 5-year period if it finds such
exemption would likely achieve a level of safety that is equivalent to,
or greater than, the level that would be achieved absent such
exemption. The statutes allow the Agency to renew exemptions at the end
of the 5-year period. However, FMCSA grants medical exemptions from the
FMCSRs for a 2-year period to align with the maximum duration of a
driver's medical certification.
    The Agency's decision regarding these exemption applications is
based on relevant scientific information and literature, including the
2008 Evidence Report, ``Executive Summary on Hearing, Vestibular
Function and Commercial Motor Driving Safety,'' the 2014 doctoral
dissertation by Birgitta Thorslund from the Department of Behavioural
Sciences and Learning at Linkoping University, Sweden, entitled
``Effects of Hearing Loss on Traffic Safety and Mobility,'' and FMCSA's
experience with hearing exemption holders. In addition, the Agency
reviewed each applicant's driving record found in the Commercial
Driver's License Information System, for commercial driver's license
(CDL) holders, and inspections recorded in the Motor Carrier Management
Information System. For non-CDL holders, the Agency reviewed the
driving records from the State Driver's Licensing Agency. Each
applicant's record demonstrated a safe driving history. Based on an
individual assessment of each applicant that focused on whether an
equal or greater level of safety would likely be achieved by permitting
each of these drivers to drive in interstate commerce, the Agency finds
the drivers granted this exemption have demonstrated that they do not
pose a risk to public safety.
    Consequently, FMCSA finds further that in each case exempting these
applicants from the hearing standard in Sec.  391.41(b)(11) would
likely achieve a level of safety equal to that existing without the
exemption, consistent with the applicable standard in 49 U.S.C.
31315(b)(1).

V. Conditions and Requirements

    The terms and conditions of the exemption are provided to the
applicants in the exemption document and include the following: (1)
each driver must report any crashes or accidents as defined in Sec.
390.5T; (2) each driver must report all citations and convictions for
disqualifying offenses under 49 CFR parts 383 and 391 to FMCSA; and (3)
each driver is prohibited from operating a motorcoach or bus with
passengers in interstate commerce. The driver must also have a copy of
the exemption when driving, for presentation to a duly authorized
Federal, State, or local enforcement official. In addition, the
exemption does not exempt the individual from meeting the applicable
CDL testing requirements.

VI. Preemption

    During the period the exemption is in effect, no State shall
enforce any law or regulation that conflicts with this exemption with
respect to a person operating under the exemption.

VII. Conclusion

    Based upon its evaluation of the 13 exemption applications, FMCSA
exempts the following drivers from the hearing standard; in Sec.
391.41(b)(11), subject to the requirements cited above:

Frank Darracott (FL)
Tonette Garza (FL)
Andrew Gibson (TX)
Tyler Harmount (CA)
Maxwell Latin (MD)
Paradise Larizza (OR)
Hank Moore (KS)
Mayur Motiwale (NJ)
Michael Reed (AR)
Chad Smith (OH)
Justin Turner (TX)
Cody Upchurch (TX)
Thomas Williamson (IL)

    In accordance with 49 U.S.C. 31315(b), each exemption will be valid
for 2 years from the effective date 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 exemption; (2) the
exemption has resulted in a lower level of safety than was maintained
prior to being granted; or (3) continuation of the exemption would not
be consistent with the goals and objectives of 49 U.S.C. 31136, 49
U.S.C. chapter 313, or the FMCSRs.

Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2022-27323 Filed 12-15-22; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 79, Number 147 (Thursday, July 31, 2014)]
[Proposed Rules]
[Pages 44321-44324]
[FR Doc No: 2014-18074]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 33

[Docket No.FAA-2014-0376; Notice No. 33-14-01-SC]

Special Conditions: SNECMA, Silvercrest-2 SC-2D; Rated 10-Minute
One Engine Inoperative Takeoff Thrust at High Ambient Temperature

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed special conditions.

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SUMMARY: This action proposes special conditions for the SNECMA,
Silvercrest-2 SC-2D engine model. This engine will have a novel or
unusual design feature--an additional takeoff rating that increases the
exhaust gas temperature (EGT) limit to maintain takeoff thrust in
certain high ambient temperature conditions with one engine inoperative
(OEI) for a maximum of 10 minutes. The applicable airworthiness
regulations do not contain adequate or appropriate safety standards for
this design feature. The proposed special conditions contain the
additional safety standards that the Administrator considers necessary
to establish a level of safety equivalent to that established by the
existing airworthiness standards.

DATES: Send your comments on or before September 2, 2014.

ADDRESSES: Send comments identified by docket number [FAA-2014-0376]
using any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC, 20590-0001.
     Hand Delivery of Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 8 a.m., and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: Docket Operations will post all comments it receives,
without change, to http://regulations.gov, including any personal
information the commenter provides. Using the search function of the
docket Web site, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov.
    Docket: You may read background documents or comments received at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m., and 5 p.m., Monday through Friday,
except federal holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this proposed rule, contact Tara Fitzgerald, ANE-111, Engine and
Propeller Directorate, Aircraft Certification Service, 12 New England
Executive Park, Burlington, Massachusetts, 01803-5213; telephone (781)
238-7130; facsimile<PHONE_NUMBER>. For legal questions concerning this
proposed rule, contact Vincent Bennett, ANE-7, Engine and Propeller
Directorate, Aircraft Certification Service, 12 New England Executive
Park, Burlington, Massachusetts, 01803-5299; telephone<PHONE_NUMBER>;
facsimile<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

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

Background

    On April 19, 2011, SNECMA applied for a new type certificate (TC)
for the Silvercrest-2 SC-2D engine model. On April 30, 2014, SNECMA
requested an extension to their original TC application, which the FAA
granted through June 30, 2015.
    For their Silvercrest-2 SC-2D engine model, SNECMA requests an
additional takeoff rating to maintain takeoff thrust in certain high
ambient temperature conditions with OEI. Therefore, the Silvercrest-2
SC-2D engine model would have two different takeoff ratings. The first
rating corresponds with the rated takeoff thrust of the engine. The
second takeoff rating maintains the takeoff thrust in certain high
ambient temperature conditions for a maximum of 10 minutes. This
additional takeoff rating is named, ``Rated 10-Minute OEI Takeoff
Thrust at High Ambient Temperature'' (Rated 10-minute OEI TOTHAT).
    These special conditions are necessary because the applicable
airworthiness regulations do not contain adequate or appropriate safety
standards for the additional takeoff rating.

Type Certification Basis

    Under the provisions of Title 14, Code of Federal Regulations (14
CFR) 21.17, SNECMA must show that the Silvercrest-2 SC-2D meets the
applicable provisions of the applicable regulations in effect on the
date of application, except as detailed in paragraphs 21.101(b) and
(c). The FAA has determined the following certification basis for the
Silvercrest-2 SC-2D engine model:
    1. 14 CFR part 33, ``Airworthiness Standards Aircraft Engines,''
dated February 1, 1965, with Amendments 33-1 through 33-31, dated July
18, 2011.
    If the FAA finds that the regulations in effect on the date of the
application for the change do not provide adequate or appropriate
safety standards for the

Silvercrest-2 SC-2D because of a novel or unusual design feature,
special conditions are prescribed under the provisions of Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same or similar
novel or unusual design feature, the special conditions would also
apply to the other model under Sec.  21.101.
    In addition to complying with the applicable product airworthiness
regulations and the requirements of these special conditions, the
Silvercrest-2 SC-2D engine model must also comply with the fuel vent
and exhaust emission requirements of 14 CFR part 34 and the noise
certification requirements of 14 CFR part 36 in accordance with the
``Noise Control Act of 1972.''
    The FAA issues special conditions, as defined in 14 CFR 11.19, per
Sec.  11.38, and they become part of the type certification basis under
Sec.  21.17(a)(2).

Novel or Unusual Design Features

    The Silvercrest-2 SC-2D engine model will incorporate the following
novel or unusual design feature:
    The SNECMA Silvercrest-2 SC-2D engine model will incorporate an
additional takeoff rating to maintain takeoff thrust in certain high
ambient temperature OEI takeoff conditions for a maximum of 10 minutes.
The result will be two different takeoff ratings, one for the rated
takeoff thrust of the engine and the other to maintain the takeoff
thrust in certain high ambient temperature OEI takeoff conditions for a
maximum of 10 minutes. The additional takeoff rating is referred to as
``Rated 10-Minute OEI Takeoff Thrust at High Ambient Temperature''
(Rated 10-minute OEI TOTHAT).
    The Rated 10-minute OEI TOTHAT is a novel and unusual design
feature that requires additional airworthiness standards for type
certification of the SNECMA Silvercrest-2 SC-2D engine model.

Discussion

    These proposed special conditions are necessary because current
part 33 regulations do not contain airworthiness standards for airplane
applications of OEI ratings. For an airplane application, the OEI
rating is the same as the rated thrust of the engine. All OEI ratings
in current part 33 regulations are only applicable to rotorcraft
applications.
    These proposed special conditions were modeled based on the
rotorcraft requirements for the 30-second and 2-minute OEI ratings, and
modified to represent the airplane application. The Rated 10-minute OEI
TOTHAT is similar to the 30-second and 2-minute OEI ratings available
in part 33 for rotorcraft engines. The Rated 10-minute OEI TOTHAT
shares common features, such as the need to notify the pilot and
maintenance personnel about the rating's use, provides data needed for
power assurance check, and continued validation of the related
maintenance procedures.
    The Rated 10-minute OEI TOTHAT is for use during OEI events that
occur during takeoff in high ambient temperature conditions, up to 5
degrees Celsius hotter than the rated takeoff thrust corner point.
Under these unique conditions (extreme hot day and OEI), the Rated 10-
minute OEI TOTHAT leads to an increase in EGT to maintain the takeoff
thrust of the engine. These proposed special conditions contain
additional mandatory post-flight inspection and maintenance action
requirements associated with any use of the Rated 10-minute OEI TOTHAT.
These requirements add a rating definition in part 1.1 and mandates
mandatory inspections in the ICA; instructions for installing and
operating the engine; engine rating and operating limitations;
instrument connection; and endurance testing.
    The current requirements of the endurance test under Sec.  33.87
represent a typical airplane flight profile and the severity of the
takeoff rating. Therefore, the endurance test under Sec.  33.87 covers
normal all-engines-operating takeoff conditions for which the engine
control system limits the engine to the takeoff thrust rating. The
proposed special conditions for the endurance testing requirements are
intended to represent the airplane flight profile when an OEI event
occurs during takeoff under specified ambient temperatures, and until
the mandatory inspection and maintenance actions can be performed.
These proposed special conditions require endurance testing that is not
less than 135 minutes in duration and demonstrates the engine is
capable of the additional Rated 10-minute OEI TOTHAT rating at the
higher EGT limit following completion of the tests required by Sec.
33.87(b), without disassembly or modification.
    The associated engine deterioration after use of the Rated 10-
minute OEI TOTHAT is not known without the intervening mandatory
inspections in these special conditions. The mandatory inspections
ensure the engine will continue to comply with its certification basis
after any use of the Rated 10-minute OEI TOTHAT. The applicant is
expected to assess the deterioration from use of the Rated 10-minute
OEI TOTHAT. The Airworthiness Limitations section must prescribe the
mandatory post-flight inspections and maintenance actions associated
with any use of the Rated 10-minute OEI TOTHAT.
    These requirements maintain a level of safety equivalent to the
level intended by the applicable airworthiness standards in effect on
the date of application.

Applicability

    As discussed above, these special conditions are applicable to the
Silvercrest-2 SC-2D engine model. Should SNECMA apply at a later date
for a change to the type certificate to include another engine model
incorporating the same novel or unusual design feature, these special
conditions would apply to that model as well.

Conclusion

    This action affects only the Rated 10-minute OEI TOTHAT features on
the Silvercrest-2 SC-2D engine model. It is not a rule of general
applicability and applies only to SNECMA, who requested FAA approval of
this engine feature.

List of Subjects in 14 CFR Part 33

    Air Transportation, Aircraft, Aviation, Aviation safety, Safety.

    The authority citation for these special conditions is as follows:

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

The Proposed Special Conditions

    Accordingly, the FAA proposes the following special conditions as
part of the type certification basis for the SNECMA Silvercrest-2 SC-2D
engine model.

1. Part 1.1 Definitions.

    ``Rated 10-Minute One Engine Inoperative Take-off Thrust at High
Ambient Temperature'' (Rated 10-minute OEI TOTHAT) means the approved
engine thrust developed under specified altitudes and temperatures
within the operating limitations established for the engine, and for
continuation of flight operation after failure or shutdown of one
engine in a multi-engine airplane during takeoff operation. Use is
limited to two periods, no longer than 10 minutes each in any one
flight, and followed by mandatory inspection and maintenance actions.

2. Part 33 Requirements.

    In addition to the airworthiness standards in 14 CFR part 33,
effective

February 1, 1965, Amendments 33-1 through 33-31 applicable to the
engine and the Rated 10-minute OEI TOTHAT, the following special
conditions apply:

Sec.  33.4  Instructions for Continued Airworthiness.

    (a) The Airworthiness Limitations section must prescribe the
mandatory post-flight inspections and maintenance actions associated
with any use of the Rated 10-minute OEI TOTHAT.
    (b) The applicant must validate the adequacy of the inspections and
maintenance actions required under paragraph Sec.  33.4(a) of these
special conditions.
    (c) The applicant must establish an in-service engine evaluation
program to ensure the continued adequacy of the instructions for
mandatory post-flight inspections and maintenance actions prescribed
under paragraph Sec.  33.4(a) of these special conditions, and of the
data for thrust assurance procedures required by Sec.  33.5(b)(1) of
these special conditions. The program must include service engine tests
or equivalent service engine test experience on engines of similar
design and evaluations of service use of the Rated 10-minute OEI
TOTHAT.

Sec.  33.5  Instruction manual for installing and operating the engine.

    (a) Installation Instructions:
    (1) The applicant must identify the means, or provisions for means,
provided in compliance with the requirements of Sec.  33.29 of these
special conditions.
    (2) The applicant must specify that the engine thrust control
system automatically resets the thrust on the operating engine to the
Rated 10-minute OEI TOTHAT level when one engine fails during takeoff
at specified altitudes and temperatures, and that the Rated 10-minute
OEI TOTHAT is not available when all engines are operational.
    (b) Operating Instructions:
    (1) The applicant must provide data on engine performance
characteristics and variability to enable the airplane manufacturer to
establish airplane thrust assurance procedures.

Sec.  33.7  Engine ratings and operating limitations.

    (a) The Rated 10-minute OEI TOTHAT and the associated operating
limitations are established as follows:
    (1) The thrust is the same as the engine takeoff rated thrust with
extended flat rating corner point,
    (2) The rotational speed limits are the same as those associated
with the engine takeoff rated thrust,
    (3) The applicant must establish a gas temperature steady-state
limit and, if necessary, a transient gas overtemperature limit for
which the time duration is no longer than 30 seconds, and
    (4) The use is limited to two periods of no longer than 10 minutes
each in any one flight, and followed by mandatory inspection and
maintenance actions prescribed by Sec.  33.4(a) of these special
conditions.
    (b) The applicant must propose language to include in the type
certificate data sheet specified in Sec.  21.41 for the following:
    (1) The Rated 10-minute OEI TOTHAT and associated limitations.
    (2) As required by Sec.  33.5(b), Operating instructions, include a
note stating that ``Rated 10-Minute One Engine Inoperative Take-off
Thrust at High Ambient Temperature'' (Rated 10-minute OEI TOTHAT) means
the approved engine thrust developed under specified altitudes and
temperatures within the operating limitations established for the
engine, and for continuation of flight operation after failure or
shutdown of one engine in multi-engine airplane during takeoff
operation. Use is limited to two periods, no longer than 10 minutes
each in any one flight, and followed by mandatory inspection and
maintenance actions.
    (3) As required by Sec.  33.5(b), Operating instructions, include a
note stating that the engine thrust control system automatically resets
the thrust on the operating engine to the Rated 10-minute OEI TOTHAT
level when one engine fails during takeoff at specified altitudes and
temperatures, and that the Rated 10-minute OEI TOTHAT is not available
when all engines are operational.

Sec.  33.28  Engine control systems.

    (a) The engine must incorporate a means, or a provision for a
means, for automatic availability and automatic control of the Rated
10-minute OEI TOTHAT.
    (b) The engine controls managing the OEI takeoff thrust for all
ambient conditions must assure that:
    (1) The approved rated takeoff thrust is available to the pilot at
all times by throttle selection, and
    (2) The Rated 10-minute OEI TOTHAT is only available in an OEI
condition at specified altitudes and temperatures.

Sec.  33.29  Instrument connection.

    (a) The engine must:
    (1) Have means or provisions for means, to alert the pilot when the
Rated 10-minute OEI TOTHAT is in use, when the event begins, and when
the time interval expires.
    (2) Have means, or provision for means, which cannot be reset in
flight, to:
    (i) Automatically record each use and duration of the Rated 10-
minute OEI TOTHAT, and
    (ii) Alert maintenance personnel that the engine has been operated
at the Rated 10-minute OEI TOTHAT, and permit retrieval of recorded
data.
    (iii) Have means, or provision for means, to enable routine
verification of the proper operation of the means in Sec. Sec.
33.29(1) and (2) of these special conditions.

Sec.  33.85(b)  Calibration tests.

    The applicant must base the calibration test on the thrust check at
the end of the endurance test required by Sec.  33.87 of these special
conditions.

Sec.  33.87  Endurance test.

    (a) Following completion of the tests required by Sec.  33.87(b),
and without intervening disassembly, except as needed to replace those
parts described as consumables in the ICA, the applicant must conduct
the following test sequence for a total time of not less than 135
minutes:
    (1) Ten minutes at Rated 10-minute OEI TOTHAT,
    (2) Sixty-five minutes at maximum continuous thrust,
    (3) One minute at 50 percent of takeoff thrust,
    (4) Ten minutes at Rated 10-minute OEI TOTHAT,
    (5) One minute at flight idle,
    (6) Ten minutes at Rated 10-minute OEI TOTHAT,
    (7) Five minutes at maximum continuous thrust,
    (8) One minute at 50 percent of takeoff thrust,
    (9) Five minutes at Rated 10-minute OEI TOTHAT,
    (10) One minute at flight idle,
    (11) Ten minutes at Rated 10-minute OEI TOTHAT,
    (12) Five minutes at maximum continuous thrust,
    (13) One minute at 50 percent of takeoff thrust,
    (14) Nine minutes at Rated 10-minute OEI TOTHAT, and
    (15) One minute at flight idle
    (b) The test sequence of Sec. Sec.  33.87(a)(1) through (a)(15) of
these special conditions must be run continuously. If a stop occurs
during these tests, the interrupted sequence must be repeated unless
the applicant shows that the severity of the test would not be reduced
if the current tests were continued.
    (c) Where the engine characteristics are such that acceleration to
the Rated

10-minute OEI TOTHAT results in a transient overtemperature in excess
of the steady-state temperature limit identified in Sec.  33.7(a)(3) of
these special conditions, the transient gas overtemperature must be
applied to each acceleration to the Rated 10-minute OEI TOTHAT of the
test sequence in Sec.  33.87(a) of these special conditions.

Sec.  33.93  Teardown inspection.

    The applicant must perform the teardown inspection required by
Sec.  33.93(a) after completing the endurance test prescribed by Sec.
33.87 of these special conditions.

Sec.  33.201  Design and test requirements for Early ETOPS eligibility.

    In addition to the requirements of Sec.  33.201(c)(1), the
simulated ETOPS mission cyclic endurance test must include two cycles
of 10 minute duration, each at the Rated 10-minute OEI TOTHAT; one
before the last diversion cycle and one at the end of the ETOPS test.

    Issued in Burlington, Massachusetts, on July 11, 2014.
Kimberly K. Smith,
Acting Manager, Engine and Propeller Directorate, Aircraft
Certification Service.
[FR Doc. 2014-18074 Filed 7-30-14; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Notices]
[Page 11640]
[FR Doc No: 2016-04847]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Eighth Meeting: RTCA Special Committee (230) Airborne Weather
Detection Systems (Joint With EUROCAE WG-95)

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

ACTION: Notice of Eighth RTCA Special Committee 230 meeting.

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

SUMMARY: The FAA is issuing this notice to advise the public of the
Eighth RTCA Special Committee 230 meeting.

DATES: The meeting will be held April 12-14, 2016 from 8:30 a.m.-5:00
p.m.

ADDRESSES: The meeting will be held at Hilton Melbourne Beach
Oceanfront Hotel, 3003 North Highway A1A, Melbourne, FL 32903, DC Tel:
(202) 330-0680.

FOR FURTHER INFORMATION CONTACT: The RTCA Secretariat, 1150 18th Street
NW., Suite 910, Washington, DC 20036, or by telephone at (202) 833-
9339, fax at<PHONE_NUMBER>, or Web site at http://www.rtca.org or
Karan Hofmann, Program Director, RTCA, Inc<EMAIL_ADDRESS>(202)
330-0680.

SUPPLEMENTARY INFORMATION: Pursuant to section 10(a)(2) of the Federal
Advisory Committee Act (Pub. L. 92-463, 5 U.S.C., App.), notice is
hereby given for a meeting of RTCA Special Committee 230. The agenda
will include the following:

Tuesday, April 12, 2016

1. Plenary Meeting (8:30 a.m.-11:00 a.m.)
    a. Welcome
    b. Introduction--tour de table--Logistic & Agenda
    c. Short presentation (WG-95)--TOR--Work Plan--Remaining work
    d. Short presentation (WG-95 SG)--TOR--Work Plan
    e. Future Meetings--June/October
    f. Summary of progress through WG95 SG Webex
    g. Review of common Actions between WG-95/SC-230 and the subgroup
WG95 SG
2. Group Meetings (11:00 a.m.-5:00 p.m.)

Wednesday, April 13, 2016

1. Group Meetings (9:00 a.m.-5:00 p.m.)

Thursday, April 14, 2016

1. Group Meetings (9:00 a.m.-2:00 p.m.)
2. Plenary Meeting (2:00 p.m.-4:00 p.m.)
    a. Presentation of WG-95 SG progress report to WG-95/SC-230
    b. Q&A sessions

    Attendance is open to the interested public but limited to space
availability. Members of the public who wish to attend should email one
of the following by March 13, 2016: Vince LoPresto at
<EMAIL_ADDRESS>Francois Larue at
<EMAIL_ADDRESS>or Jeffery Finley at
<EMAIL_ADDRESS>With the approval of the chairman,
members of the public may present oral statements at the meeting.
Plenary information will be provided upon request. Persons who wish to
present statements or obtain information should contact the person
listed in the FOR FURTHER INFORMATION CONTACT section. Members of the
public may present a written statement to the committee at any time.

    Issued in Washington, DC, on March 1, 2016.
Latasha Robinson,
Management & Program Analyst, NextGen, Enterprise Support Services
Division, Federal Aviation Administration.
[FR Doc. 2016-04847 Filed 3-3-16; 8:45 am]
 BILLING CODE 4910-13-P