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.

Rules and Regulations Federal Register

36997 

Vol. 85, No. 119 

Friday, June 19, 2020 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

[Docket No. SBA–2020–0037] 

RIN 3245–AH51 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—Revisions to the Third and 

Sixth Interim Final Rules 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Interim final rule. 

SUMMARY: On April 2, 2020, the U.S. 

Small Business Administration (SBA) 

posted on its website an interim final 

rule relating to the implementation of 

sections 1102 and 1106 of the 

Coronavirus Aid, Relief, and Economic 

Security Act (CARES Act or the Act) 

(published in the Federal Register on 

April 15, 2020). Section 1102 of the Act 

temporarily adds a new product, titled 

the ‘‘Paycheck Protection Program,’’ to 

SBA’s 7(a) Loan Program. Subsequently, 

SBA and Treasury issued additional 

interim final rules implementing the 

Paycheck Protection Program. On June 

5, 2020, the Paycheck Protection 

Program Flexibility Act of 2020 

(Flexibility Act) was signed into law, 

amending the CARES Act. This interim 

final rule revises interim final rules 

posted on SBA’s website on April 14, 

2020 (published in the Federal Register 

on April 20, 2020) and April 28, 2020 

(published in the Federal Register on 

May 4, 2020), by changing provisions to 

conform to the Flexibility Act. Several 

of these amendments are retroactive to 

the date of enactment of the CARES Act, 

as required by section 3(d) of the 

Flexibility Act. 

DATES: 

Effective dates: The provisions in this 

interim final rule related to loan 

forgiveness for PPP loans are effective 

March 27, 2020. The provision in this 

interim final rule relating to the 

maturity date of PPP loans is effective 

June 5, 2020. The remaining provisions 

in this interim final rule are effective 

June 16, 2020. 

Comment date: Comments must be 

received on or before July 20, 2020. 

ADDRESSES: You may submit comments, 

identified by number SBA–2020–0037, 

through the Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

SBA will post all comments on 

www.regulations.gov. If you wish to 

submit confidential business 

information (CBI) as defined in the User 

Notice at www.regulations.gov, please 

send an email to ppp-ifr@sba.gov. 

Highlight the information that you 

consider to be CBI and explain why you 

believe SBA should hold this 

information as confidential. SBA will 

review the information and make the 

final determination whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: A 

Call Center Representative at 833–572– 

0502, or the local SBA Field Office; the 

list of offices can be found at https://

www.sba.gov/tools/local-assistance/ 

districtoffices. 

SUPPLEMENTARY INFORMATION: 

I. Background Information 

On March 13, 2020, President Trump 

declared the ongoing Coronavirus 

Disease 2019 (COVID–19) pandemic of 

sufficient severity and magnitude to 

warrant an emergency declaration for all 

states, territories, and the District of 

Columbia. With the COVID–19 

emergency, many small businesses 

nationwide are experiencing economic 

hardship as a direct result of the 

Federal, State, and local public health 

measures that are being taken to 

minimize the public’s exposure to the 

virus. These measures, some of which 

are government-mandated, have been 

implemented nationwide and include 

the closures of restaurants, bars, and 

gyms. In addition, based on the advice 

of public health officials, other 

measures, such as keeping a safe 

distance from others or even stay-athome orders, have been implemented, 

resulting in a dramatic decrease in 

economic activity as the public avoids 

malls, retail stores, and other 

businesses. 

On March 27, 2020, the President 

signed the Coronavirus Aid, Relief, and 

Economic Security Act (the CARES Act 

or the Act) (Pub. L. 116–136) to provide 

emergency assistance and health care 

response for individuals, families, and 

businesses affected by the coronavirus 

pandemic. The Small Business 

Administration (SBA) received funding 

and authority through the Act to modify 

existing loan programs and establish a 

new loan program to assist small 

businesses nationwide adversely 

impacted by the COVID–19 emergency. 

Section 1102 of the Act temporarily 

permits SBA to guarantee 100 percent of 

7(a) loans under a new program titled 

the ‘‘Paycheck Protection Program.’’ 

Section 1106 of the Act provides for 

forgiveness of up to the full principal 

amount of qualifying loans guaranteed 

under the Paycheck Protection Program. 

On April 24, 2020, the President 

signed the Paycheck Protection Program 

and Health Care Enhancement Act (Pub. 

L. 116–139), which provided additional 

funding and authority for the PPP. On 

June 5, 2020, the President signed the 

Paycheck Protection Program Flexibility 

Act of 2020 (Flexibility Act) (Pub. L. 

116–142), which changes key provisions 

of the Paycheck Protection Program, 

including provisions relating to the 

maturity of PPP loans, the deferral of 

PPP loan payments, and the forgiveness 

of PPP loans. Section 3(d) of the 

Flexibility Act provides that the 

amendments relating to PPP loan 

forgiveness and extension of the deferral 

period for PPP loans shall be effective 

as if included in the CARES Act, which 

means that they are retroactive to March 

27, 2020. Section 2 of the Flexibility Act 

provides that the amendment relating to 

the extension of the maturity date for 

PPP loans shall take effect on the date 

of enactment (June 5, 2020). Under the 

Flexibility Act, the extension of the 

maturity date for PPP loans is applicable 

to PPP loans made on or after that date, 

and lenders and borrowers may 

mutually agree to modify PPP loans 

made before such date to reflect the 

longer maturity. 

II. Comments and Retroactive/ 

Immediate Effective Date 

This interim final rule is effective 

without advance notice and public 

comment because section 1114 of the 

CARES Act authorizes SBA to issue 

regulations to implement Title I of the 

Act without regard to notice 

requirements. In addition, SBA has 

determined that there is good cause for 

dispensing with advance public notice 


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1See https://www.sba.gov/document/support-- 

faq-lenders-borrowers. 

2See https://www.sba.gov/funding-programs/ 

loans/coronavirus-relief-options/paycheckprotection-program. 

and comment on the grounds that it 

would be contrary to the public interest. 

Specifically, advance public notice and 

comment would defeat the purpose of 

this interim final rule given that SBA’s 

authority to guarantee PPP loans expires 

on June 30, 2020, and that many PPP 

borrowers can now apply for loan 

forgiveness following the end of their 

eight-week covered period. Providing 

borrowers and lenders with certainty on 

both loan requirements and loan 

forgiveness requirements following the 

enactment of the Flexibility Act will 

enhance the ability of lenders to make 

loans and process loan forgiveness 

applications, particularly in light of the 

fact that most of the Flexibility Act’s 

provisions are retroactive to March 27, 

2020. Specifically, small businesses that 

have yet to apply for and receive a PPP 

loan need to be informed of the terms 

of PPP loans as soon as possible, 

because the last day on which a lender 

can obtain an SBA loan number for a 

PPP loan is June 30, 2020. Borrowers 

who already have applied for and 

received a PPP loan need certainty 

regarding how loan proceeds must be 

used during the covered period, as 

amended by the Flexibility Act, so that 

they can maximize the amount of loan 

forgiveness. These same reasons provide 

good cause for SBA to dispense with the 

30-day delayed effective date provided 

in the Administrative Procedure Act. 

Although this interim final rule is 

effective on or before date of filing, 

comments are solicited from interested 

members of the public on all aspects of 

the interim final rule, including section 

III below. These comments must be 

submitted on or before July 20, 2020. 

The SBA will consider these comments, 

comments received on the interim final 

rules amended by this interim final rule, 

which were posted on April 14 and 

April 28, 2020 (and published in the 

Federal Register on April 20, 2020 and 

May 4, 2020, respectively), and the need 

for making any revisions as a result of 

these comments. 

III. Paycheck Protection Program— 

Revisions to Third and Sixth Interim 

Final Rules 

Overview 

The CARES Act was enacted to 

provide immediate assistance to 

individuals, families, and businesses 

affected by the COVID–19 emergency. 

Among the provisions contained in the 

CARES Act are provisions authorizing 

SBA to temporarily guarantee loans 

under a new 7(a) loan program titled the 

‘‘Paycheck Protection Program.’’ Loans 

guaranteed under the Paycheck 

Protection Program (PPP) will be 100 

percent guaranteed by SBA, and the full 

principal amount of the loans may 

qualify for loan forgiveness. The 

Flexibility Act amends the CARES Act, 

including its provisions relating to loan 

terms and loan forgiveness. The purpose 

of this interim final rule is to update the 

Interim Final Rule on Additional 

Eligibility Criteria and Requirements for 

Certain Pledges of Loans (Third Interim 

Final Rule), posted on SBA’s website on 

April 14, 2020 and published in the 

Federal Register on April 20, 2020 (85 

FR 21747), and the Interim Final Rule 

on Disbursements (Sixth Interim Final 

Rule), posted on SBA’s website on April 

28, 2020 and published in the Federal 

Register on May 4, 2020 (85 FR 26321), 

in light of the amendments under the 

Flexibility Act. The Third Interim Final 

Rule and the Sixth Interim Final Rule, 

each as amended by this interim final 

rule, should be interpreted consistent 

with the frequently asked questions 

(FAQs) regarding the PPP that are 

posted on SBA’s website 1 and the other 

interim final rules issued regarding the 

PPP.2

1. Changes to the Third Interim Final 

Rule 

a. Use of PPP Loan Proceeds 

Under section 1102 of the CARES Act, 

certain provisions regarding the 

issuance and use of PPP loans are 

limited to the ‘‘covered period.’’ 

‘‘Covered period,’’ as that term is used 

in section 1102 of the CARES Act, was 

originally defined as the period from 

February 15, 2020, to June 30, 2020. 

However, section 3(a) of the Flexibility 

Act extended the ‘‘covered period’’ as 

defined in section 1102 until December 

31, 2020. Therefore, Part III.1.d.(iii.) of 

the Third Interim Final Rule (85 FR 

21747, 21749) is revised by striking 

‘‘during the eight-week period following 

the first disbursement of the loan (the 

‘‘covered period’’)’’ and ‘‘during the 

covered period’’. 

Section 2(a) of the Flexibility Act 

provides a minimum maturity of five 

years for all PPP loans made on or after 

the date of enactment of the Flexibility 

Act (June 5, 2020), and permits lenders 

and borrowers to extend the maturity 

date of earlier PPP loans by mutual 

agreement. Therefore, Part III.1.d.v. of 

the Third Interim Final Rule (85 FR 

21747, 21749) is revised by striking 

‘‘PPP’s maturity of two years’’ and 

replacing it with ‘‘PPP’s maturity of two 

years for PPP loans made before June 5, 

2020 unless the borrower and lender 

mutually agree to extend the maturity of 

such loans to five years, or PPP’s 

maturity of five years for PPP loans 

made on or after June 5’’. 

Section 3(b) of the Flexibility Act 

amended the requirements regarding 

forgiveness of PPP loans to reduce, from 

75 percent to 60 percent, the portion of 

PPP loan proceeds that must be used for 

payroll costs for the full amount of the 

PPP loan to be eligible for forgiveness. 

Consistent with this change, SBA’s 

interim final rule posted on June 11, 

2020, decreased from 75 percent to 60 

percent the portion of loan proceeds 

that must be used for payroll costs. 

Therefore, Part III.1.e. of the Third 

Interim Final Rule (85 FR 21747, 21750) 

is revised to read as follows: 

e. Are there any other restrictions on how I 

can use PPP loan proceeds? 

Yes. At least 60 percent of the PPP loan 

proceeds shall be used for payroll costs. For 

purposes of determining the percentage of 

use of proceeds for payroll costs (but not for 

forgiveness purposes), the amount of any 

refinanced EIDL will be included. The 

rationale for this 60 percent floor is 

contained in the First PPP Interim Final Rule 

and SBA’s interim final rule posted on June 

11, 2020. 

b. Loan Forgiveness 

Under section 1106 of the CARES Act, 

certain provisions regarding the 

forgiveness of PPP loans are limited to 

the ‘‘covered period.’’ ‘‘Covered 

period,’’ as that term is used in section 

1106 of the CARES Act, was originally 

defined as the eight-week period 

beginning on the date of the origination 

of a covered loan. However, section 3(b) 

of the Flexibility Act extended the 

length of the covered period as defined 

in section 1106 of the CARES Act from 

eight to 24 weeks, while allowing 

borrowers that received PPP loans 

before June 5, 2020 to elect to use the 

original eight-week covered period. As 

noted above, section 3(b) of the 

Flexibility Act also amended the 

requirements regarding forgiveness of 

PPP loans to reduce, from 75 percent to 

60 percent, the amount of PPP loan 

proceeds that must be used for payroll 

costs for the full amount of the PPP loan 

to be eligible for forgiveness. Therefore, 

Part III.1.f. of the Third Interim Final 

Rule (85 FR 21747, 21750) is revised to 

read as follows: 

f. What amounts shall be eligible for 

forgiveness? 

The amount of loan forgiveness can be up 

to the full principal amount of the loan plus 

accrued interest. The actual amount of loan 

forgiveness will depend, in part, on the total 

amount spent over the 24-week period 


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3 If your PPP loan was made before June 5, 2020, 

you may elect to have your covered period be the 

eight-week period beginning on the date your PPP 

loan was disbursed. In addition, under section 

3(b)(1) of the Paycheck Protection Program 

Flexibility Act of 2020 (Flexibility Act), the covered 

period of any borrower will end no later than 

December 31, 2020. 

4 Given the 2.5 multiplier in the calculation of 

maximum PPP loan amount in SBA Form 2483, this 

per-individual maximum would only be reached if 

the borrower had reduced its FTEs but was eligible 

for an exemption (safe harbor) from the resulting 

reduction in forgiveness. 

beginning on the date your PPP loan is 

disbursed 3 (‘‘covered period’’) on: 

i. Payroll costs including salary, wages, 

and tips, up to $100,000 of annualized pay 

per employee (for 24 weeks, a maximum of 

$46,154 per individual,4 or for eight weeks, 

a maximum of $15,385 per individual), as 

well as covered benefits for employees (but 

not owners), including health care expenses, 

retirement contributions, and state taxes 

imposed on employee payroll paid by the 

employer (such as unemployment insurance 

premiums); 

ii. owner compensation replacement, 

calculated based on 2019 net profit as 

described in Paragraph 1.b. above, with 

forgiveness of such amounts limited to eight 

weeks’ worth (8/52) of 2019 net profit (up to 

$15,385) for an eight-week covered period or 

2.5 months’ worth (2.5/12) of 2019 net profit 

(up to $20,833) for a 24-week covered period, 

but excluding any qualified sick leave 

equivalent amount for which a credit is 

claimed under section 7002 of the Families 

First Coronavirus Response Act (FFCRA) 

(Pub. L. 116–127) or qualified family leave 

equivalent amount for which a credit is 

claimed under section 7004 of FFCRA; 

iii. payments of interest on mortgage 

obligations on real or personal property 

incurred before February 15, 2020, to the 

extent they are deductible on Form 1040 

Schedule C (business mortgage payments); 

iv. rent payments on lease agreements in 

force before February 15, 2020, to the extent 

they are deductible on Form 1040 Schedule 

C (business rent payments); and 

v. utility payments under service 

agreements dated before February 15, 2020 to 

the extent they are deductible on Form 1040 

Schedule C (business utility payments). 

The Administrator, in consultation 

with the Secretary, has determined that 

it is appropriate to limit the forgiveness 

of owner compensation replacement for 

individuals with self-employment 

income who file a Schedule C or F to 

either eight weeks’ worth (8/52) of 2019 

net profit (up to $15,385) for an eightweek covered period or 2.5 months’ 

worth (2.5/12) of 2019 net profit (up to 

$20,833) for a 24-week covered period 

per owner in total across all businesses. 

This approach is consistent with the 

structure of the CARES Act and its 

overarching focus on keeping workers 

paid, and will prevent windfalls that 

Congress did not intend. Specifically, 

Congress determined that the maximum 

loan amount is generally based on 2.5 

months of the borrower’s average total 

monthly payroll costs during the oneyear period preceding the loan. 15 

U.S.C. 636(a)(36)(E). For example, a 

borrower with one other employee 

would receive a maximum loan amount 

equal to five months of payroll (2.5 

months of payroll for the owner plus 2.5 

months of payroll for the employee). If 

the owner laid off the employee and 

availed itself of the safe harbor in the 

Flexibility Act from reductions in loan 

forgiveness for a borrower that is unable 

to return to the same level of business 

activity the business was operating at 

before February 15, 2020, the owner 

could treat the entire amount of the PPP 

loan as payroll, with the entire loan 

being forgiven. This would not only 

result in a windfall for the owner, by 

providing the owner with five months of 

payroll instead of 2.5 months, but also 

defeat the purpose of the CARES Act of 

protecting the paycheck of the 

employee. For borrowers with no 

employees, this limitation will have no 

effect, because the maximum loan 

amount for such borrowers already 

includes only 2.5 months of their 

payroll. Finally, at least 60 percent of 

the amount forgiven must be 

attributable to payroll costs, for the 

reasons specified in the First PPP 

Interim Final Rule and SBA’s interim 

final rule posted on June 11, 2020. 

In addition, Part III.1.g. of the Third 

Interim Final Rule (85 FR 21747, 21750) 

is revised by striking ‘‘eight-week’’. 

2. Changes to the Sixth Interim Final 

Rule 

As described above, section 3(b) of the 

Flexibility Act extended the length of 

the covered period as defined in section 

1106 of the CARES Act from eight to 24 

weeks, while allowing borrowers that 

received PPP loans before June 5, 2020 

to elect to use the original eight-week 

covered period. Therefore, Part III.1.a. of 

the Sixth Interim Final Rule (85 FR 

26321, 26322–23) is revised by striking 

both references to ‘‘eight-week covered 

period’’ and replacing them with 

‘‘covered period’’. 

3. Additional Information 

SBA may provide further guidance, if 

needed, through SBA notices which will 

be posted on SBA’s website at 

www.sba.gov. Questions on the 

Paycheck Protection Program may be 

directed to the Lender Relations 

Specialist in the local SBA Field Office. 

The local SBA Field Office may be 

found at https://www.sba.gov/tools/ 

local-assistance/districtoffices. 

Compliance With Executive Orders 

12866, 12988, 13132, 13563, and 13771, 

the Paperwork Reduction Act (44 

U.S.C. Ch. 35), and the Regulatory 

Flexibility Act (5 U.S.C. 601–612) 

Executive Orders 12866, 13563, and 

13771 

This interim final rule is 

economically significant for the 

purposes of Executive Orders 12866 and 

13563, and is considered a major rule 

under the Congressional Review Act. 

SBA, however, is proceeding under the 

emergency provision at Executive Order 

12866 Section 6(a)(3)(D) based on the 

need to move expeditiously to mitigate 

the current economic conditions arising 

from the COVID–19 emergency. This 

rule’s designation under Executive 

Order 13771 will be informed by public 

comment. 

This rule is necessary to implement 

Sections 1102 and 1106 of the CARES 

Act and the Flexibility Act in order to 

provide economic relief to small 

businesses nationwide adversely 

impacted under the COVID–19 

Emergency Declaration. We anticipate 

that this rule will result in substantial 

benefits to small businesses, their 

employees, and the communities they 

serve. However, we lack data to estimate 

the effects of this rule. 

Executive Order 12988 

SBA has drafted this rule, to the 

extent practicable, in accordance with 

the standards set forth in section 3(a) 

and 3(b)(2) of Executive Order 12988, to 

minimize litigation, eliminate 

ambiguity, and reduce burden. The rule 

has no preemptive effect but does have 

a limited retroactive effect consistent 

with section 3(d) of the Flexibility Act. 

Executive Order 13132 

SBA has determined that this rule 

will not have substantial direct effects 

on the States, on the relationship 

between the National Government and 

the States, or on the distribution of 

power and responsibilities among the 

various layers of government. Therefore, 

SBA has determined that this rule has 

no federalism implications warranting 

preparation of a federalism assessment. 

Paperwork Reduction Act, 44 U.S.C. 

Chapter 35 

SBA has determined that this rule 

will not modify existing recordkeeping 

or reporting requirements under the 

Paperwork Reduction Act. 

Regulatory Flexibility Act (RFA) 

The Regulatory Flexibility Act (RFA) 

generally requires that when an agency 

issues a proposed rule, or a final rule 


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pursuant to section 553(b) of the APA or 

another law, the agency must prepare a 

regulatory flexibility analysis that meets 

the requirements of the RFA and 

publish such analysis in the Federal 

Register. 5 U.S.C. 603, 604. Specifically, 

the RFA normally requires agencies to 

describe the impact of a rulemaking on 

small entities by providing a regulatory 

impact analysis. Such analysis must 

address the consideration of regulatory 

options that would lessen the economic 

effect of the rule on small entities. The 

RFA defines a ‘‘small entity’’ as (1) a 

proprietary firm meeting the size 

standards of the Small Business 

Administration (SBA); (2) a nonprofit 

organization that is not dominant in its 

field; or (3) a small government 

jurisdiction with a population of less 

than 50,000. 5 U.S.C. 601(3)–(6). Except 

for such small government jurisdictions, 

neither State nor local governments are 

‘‘small entities.’’ Similarly, for purposes 

of the RFA, individual persons are not 

small entities. 

The requirement to conduct a 

regulatory impact analysis does not 

apply if the head of the agency ‘‘certifies 

that the rule will not, if promulgated, 

have a significant economic impact on 

a substantial number of small entities.’’ 

5 U.S.C. 605(b). The agency must, 

however, publish the certification in the 

Federal Register at the time of 

publication of the rule, ‘‘along with a 

statement providing the factual basis for 

such certification.’’ If the agency head 

has not waived the requirements for a 

regulatory flexibility analysis in 

accordance with the RFA’s waiver 

provision, and no other RFA exception 

applies, the agency must prepare the 

regulatory flexibility analysis and 

publish it in the Federal Register at the 

time of promulgation or, if the rule is 

promulgated in response to an 

emergency that makes timely 

compliance impracticable, within 180 

days of publication of the final rule. 5 

U.S.C. 604(a), 608(b). 

Rules that are exempt from notice and 

comment are also exempt from the RFA 

requirements, including conducting a 

regulatory flexibility analysis, when 

among other things the agency for good 

cause finds that notice and public 

procedure are impracticable, 

unnecessary, or contrary to the public 

interest. Small Business 

Administration’s Office of Advocacy 

guide: How to Comply with the 

Regulatory Flexibility Act, Ch.1. p.9. 

Accordingly, SBA is not required to 

conduct a regulatory flexibility analysis. 

Authority: 15 U.S.C. 636(a)(36); Paycheck 

Protection Program Flexibility Act of 2020, 

Pub. L. 116–142; Coronavirus Aid, Relief, 

and Economic Security Act, Pub. L. 116–136, 

Section 1114. 

Jovita Carranza, 

Administrator. 

[FR Doc. 2020–13293 Filed 6–16–20; 4:15 pm] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2019–0683; Project 

Identifier AD–2020–00149–E; Amendment 

39–21149; AD 2020–13–04] 

RIN 2120–AA64 

Airworthiness Directives; General 

Electric Company Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is superseding 

Airworthiness Directive (AD) 2017–09– 

06 for all General Electric Company (GE) 

GEnx-1B and GEnx-2B model turbofan 

engines. AD 2017–09–06 required 

updating electronic engine control (EEC) 

full authority digital electronic control 

(FADEC) software on GEnx-1B and 

GEnx-2B turbofan engines and replacing 

a certain fan hub frame assembly part 

installed on GEnx-2B turbofan engines. 

This AD requires updating EEC software 

on GEnx-1B and GEnx-2B engines and 

replacing a certain fan hub frame 

assembly part installed on GEnx-2B 

engines. This AD was prompted by the 

development of a design change by GE 

to remove the unsafe condition. The 

FAA is issuing this AD to address the 

unsafe condition on these products. 

DATES: This AD is effective July 24, 

2020. 

ADDRESSES: For service information 

identified in this final rule, contact 

General Electric Company, GE Aviation, 

Room 285, 1 Neumann Way, Cincinnati, 

OH 45215; phone: 513–552–3272; email: 

geae.aoc@ge.com. You may view this 

service information at the FAA, 

Airworthiness Products Section, 

Operational Safety Branch, 1200 District 

Avenue, Burlington, MA 01803. For 

information on the availability of this 

material at the FAA, call 781–238–7759. 

It is also available on the internet at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2019–0683. 

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–2019– 

0683; 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 final rule, 

the regulatory evaluation, any 

comments received, and other 

information. The address for Docket 

Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Mehdi Lamnyi, Aerospace Engineer, 

ECO Branch, FAA, 1200 District 

Avenue, Burlington, MA 01803; phone: 

(781) 238–7743; fax: (781) 238–7199; 

email: Mehdi.Lamnyi@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to supersede AD 2017–09–06, 

Amendment 39–18868 (82 FR 21111, 

May 5, 2017), (‘‘AD 2017–09–06’’). AD 

2017–09–06 applied to all GE GEnx-1B 

and GEnx-2B model turbofan engines. 

The NPRM published in the Federal 

Register on November 19, 2019 (84 FR 

63820). The NPRM was prompted by the 

development of a design change by GE 

to remove the unsafe condition. The 

NPRM proposed to require updating 

EEC FADEC software on GEnx-1B and 

GEnx-2B model turbofan engines and 

replacing a certain fan hub frame 

assembly part installed on GEnx-2B 

model turbofan engines. The FAA is 

issuing this AD to address the unsafe 

condition on these products. 

Comments 

The FAA gave the public the 

opportunity to participate in developing 

this final rule. The following presents 

the comments received on the NPRM 

and the FAA’s response to each 

comment. 

Request To Clarify Compliance Time 

The Air Line Pilots Association, 

International (ALPA), commented that it 

is unclear why the compliance time to 

remove the affected fan hub stator 

assembly booster outlet guide vanes 

(BOGV) of ‘‘before further flight,’’ would 

occur after an independent engine shop 

visit. ALPA suggested either removal or 

clarification of the ‘‘before further 

flight’’ compliance time requirement. 

This AD supersedes AD 2017–09–06 

(82 FR 21111, May 5, 2017), which 

specified removal of certain fan hub 

stator assembly BOGV at the next engine 

shop visit after its effective date (June 9, 

2017). This AD retains the requirement 


khammond on DSKJM1Z7X2PROD with RULES