76540 Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Proposed Rules 

(iv) Cap the exhaust opening; 

(v) Remove the heater; and 

(vi) Do weight and balance for the aircraft. 

(vii) If you install an applicable 

combustion heater, you must perform one of 

the actions in paragraphs (f)(1) through (3) of 

this AD. 

(l) Special Flight Permit 

Special flight permits are permitted in 

accordance with 14 CFR 39.23 with the 

following limitation: Use of the heater is not 

allowed. 

(m) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Chicago Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in 

paragraph (o)(1) of this AD. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(3) AMOCs approved for AD 81–09–09 (46 

FR 24936, May 4, 1981) are not approved as 

AMOCs for this AD. 

(n) Related Information 

(1) For more information about this AD, 

contact Chung-Der Young, Aerospace 

Engineer, Chicago Aircraft Certification 

Office, FAA, Small Airplane Directorate, 

2300 East Devon Avenue, Des Plaines, IL 

60018–4696; telephone (847) 294–7309; fax 

(847) 294–7834 email: chung-der.young@

faa.gov. 

(2) For service information identified in 

this AD, contact Meggitt Control Systems, 3 

Industrial Drive, Troy, Indiana 47588; 

telephone: (812) 547–7071; fax: (812) 547– 

2488; email: infotroy@meggitt.com; Internet: 

www.stewart-warner.com. You may view this 

referenced service information at the FAA, 

Small Airplane Directorate, 901 Locust, 

Kansas City, Missouri 64106. For information 

on the availability of this material at the 

FAA, call (816) 329–4148. 

Appendix 1 to Docket No. FAA–2016–0603 

The following service information applies 

to certain combustion heater models affected 

by this AD, but the service information can 

not be required by the AD. You may use this 

service information for procedural guidance 

when applying for an alternative method of 

compliance. 

—South Wind Service Manual P.M. 35710 

Aircraft Heaters 8240–E, 8259–HL1, HL2, 

-L, supplements attached HR2.JR2.M; 

—South Wind Service Manual PM35710 

Aircraft Heaters 

—Stewart-Warner Corporation South Wind 

Division Service Manual South Wind 

Aircraft Heaters Series 921 and 930, Ind506, Revision 4–53; 

—Stewart-Warner Corporation South Wind 

Division Service Manual SouthWind Series 

940 Heater, PM–10035, Revision 3–82; 

—Stewart-Warner Corporation South Wind 

Division Service Manual South Wind 

Model 978 Personal Heater, Form No. 

PM6348 (12–56); 

—South Wind Service Manual Model 979–B1 

Aircraft Heater, South Wind Division of 

Stewart-Warner Corporation, (3–51); 

—Navion Model 977–B Installation Manual 

Section I, Section II, Section III, and 

Section IV. 

Issued in Kansas City, Missouri, on 

October 27, 2016. 

Pat Mullen, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2016–26428 Filed 11–2–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2015–0165; Directorate 

Identifier 2015–NE–02–AD] 

RIN 2120–AA64 

Airworthiness Directives; General 

Electric Company Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to supersede 

airworthiness directive (AD) 2015–15– 

03, which applies to all General Electric 

Company (GE) GEnx turbofan engine 

models. AD 2015–15–03 precludes the 

use of certain full authority digital 

engine control (FADEC) software on 

GEnx turbofan engines. Since we issued 

AD 2015–15–03, GE implemented final 

design changes that remove the unsafe 

condition. This proposed AD would 

require removing a specific part and 

replacing it with a part eligible for 

installation and specifying the FADEC 

software version for the affected GEnx 

turbofan engines. We are proposing this 

AD to prevent engine failure, loss of 

thrust control, and damage to the 

airplane. 

DATES: We must receive comments on 

this proposed AD by January 3, 2017. 

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 

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

instructions for submitting comments. 

• Fax: 202–493–2251. 

• 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 service information identified in 

this NPRM, 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, Engine & 

Propeller Directorate, 1200 District 

Avenue, Burlington, MA. For 

information on the availability of this 

material at the FAA, call 781–238–7125. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2015– 

0165; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(phone: 800–647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Christopher McGuire, Aerospace 

Engineer, Engine Certification Office, 

FAA, Engine & Propeller Directorate, 

1200 District Avenue, Burlington, MA 

01803; phone: 781–238–7120; fax: 781– 

238–7199; email: chris.mcguire@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2015–0165; Directorate Identifier 

2015–NE–02–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this NPRM. We will consider 

all comments received by the closing 

date and may amend this NPRM 

because of those comments. 

We will post all comments we 

receive, without change, to http://

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this NPRM. 

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Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Proposed Rules 76541 

Discussion 

On July 13, 2015, we issued AD 2015– 

15–03, Amendment 39–18212 (80 FR 

42707, July 20, 2015), (‘‘AD 2015–15– 

03’’), for all GE GEnx–1B turbofan 

engines with FADEC software, version 

B175 or earlier, installed, and all GE 

GEnx–2B turbofan engines with FADEC 

software, version C065 or earlier, 

installed. AD 2015–15–03 precludes the 

use of FADEC software, version B175 or 

earlier, in GEnx–1B engines, and the use 

of FADEC software, version C065 or 

earlier, in GEnx–2B engines. AD 2015– 

15–03 resulted from engine power loss 

due to ice crystal icing conditions. We 

issued AD 2015–15–03 to prevent 

engine failure, loss of thrust control, and 

damage to the airplane. 

Actions Since AD 2015–15–03 Was 

Issued 

Since we issued AD 2015–15–03, GE 

implemented final design changes that 

remove the unsafe condition. 

Related Service Information 

We reviewed GE GEnx–2B Service 

Bulletin (SB) 72–0241 R00, dated March 

16, 2016 that describes removal and 

installation procedures for fan hub 

stator assembly booster outlet guide 

vane (BOGV); GE GEnx–2B SB 73–0041 

R00, dated July 2, 2015 that describes 

reprograming procedures for electronic 

engine control (EEC) software version 

C075; and GE GEnx–1B SB 73–0044 

R00, dated July 1, 2015 that describes 

reprograming procedures for EEC 

software version B185. 

FAA’s Determination 

We are proposing this AD because we 

evaluated all the relevant information 

and determined the unsafe condition 

described previously is likely to exist or 

develop in other products of the same 

type design. 

Proposed AD Requirements 

This NPRM would require removing 

from service the GEnx–2B fan hub stator 

assembly BOGV, P/N B1316–00720, and 

replacing with a part eligible for 

installation. This NPRM would also 

specify the FADEC software version for 

GEnx–1B and GEnx–2B engines. 

Costs of Compliance 

We estimate that this proposed AD 

affects 130 engines installed on 

airplanes of U.S. registry. We estimate 

that it would take about 1 hour per 

engine to comply with the software 

installation proposed by this AD. We 

also estimate that 32 engines would 

require hardware replacement, which 

would take about 60 hours per engine. 

Required parts cost about $390,000 per 

engine. The average labor rate is $85 per 

hour. Based on these figures, we 

estimate the cost of this proposed AD on 

U.S. operators to be $12,654,250. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

Section 106, describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701, 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We have determined that this 

proposed AD would not have federalism 

implications under Executive Order 

13132. This proposed AD would not 

have a substantial direct effect on the 

States, on the relationship between the 

national Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that the proposed regulation: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

the DOT Regulatory Policies and 

Procedures (44 FR 11034, February 26, 

1979), 

(3) Will not affect intrastate aviation 

in Alaska to the extent that it justifies 

making a regulatory distinction, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by 

removing airworthiness directive (AD) 

2015–15–03, Amendment 39–18212 (80 

FR 42707, July 20, 2015), and adding the 

following new AD: 

General Electric Company: Docket No. FAA– 

2015–0165; Directorate Identifier 2015– 

NE–02–AD. 

(a) Comments Due Date 

The FAA must receive comments on this 

AD action by January 3, 2017. 

(b) Affected ADs 

This AD replaces AD 2015–15–03, 

Amendment 39–18212 (80 FR 42707, July 20, 

2015). 

(c) Applicability 

This AD applies to all General Electric 

Company (GE) GEnx–1B and GEnx–2B 

turbofan engines. 

(d) Unsafe Condition 

This AD was prompted by final design 

changes that remove the unsafe condition. 

We are issuing this AD to prevent engine 

failure, loss of thrust control, and damage to 

the airplane. 

(e) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(1) Thirty days after the effective date of 

this AD, do not operate any GE GEnx–1B 

engine with electronic engine control (EEC) 

full authority digital engine control (FADEC) 

software, version B180 or earlier, installed. 

(2) Thirty days after the effective date of 

this AD, do not operate any GE GEnx–2B 

engine with EEC FADEC software, version 

C068 or earlier, installed. 

(3) At the next shop visit after the effective 

date of this AD, remove from service all GE 

GEnx–2B67, –2B67B, and –2B67/P fan hub 

stator assembly booster outlet guide vanes, 

part number B1316–00720, and replace with 

a part eligible for installation. 

(f) Installation Prohibition 

After removing any software, version B180 

or earlier, for the GE GEnx–1B engines; or 

software, version C068 or earlier, for the GE 

GEnx–2B engines, do not operate those 

engines with any software, version earlier 

than B180 or C068. 

(g) Definition 

For the purpose of this AD, an ‘‘engine 

shop visit’’ is the induction of an engine into 

the shop for maintenance involving the 

separation of pairs of major mating engine 

case flanges, except for the following 

situations which do not constitute an engine 

shop visit: 

(1) Separation of engine flanges solely for 

the purposes of transportation without 

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76542 Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Proposed Rules 

subsequent maintenance does not constitute 

an engine shop visit. 

(2) Separation of engine flanges solely for 

the purpose of replacing the fan or propulsor 

without subsequent maintenance does not 

constitute an engine shop visit. 

(h) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

FAA, may approve AMOCs for this AD. Use 

the procedures found in 14 CFR 39.19 to 

make your request. You may email your 

request to: ANE-AD-AMOC@faa.gov. 

(i) Related Information 

For more information about this AD, 

contact Christopher McGuire, Aerospace 

Engineer, Engine Certification Office, FAA, 

Engine & Propeller Directorate, 1200 District 

Avenue, Burlington, MA 01803; phone: 781– 

238–7120; fax: 781–238–7199; email: 

chris.mcguire@faa.gov. 

Issued in Burlington, Massachusetts, on 

October 24, 2016. 

Colleen M. D’Alessandro, 

Manager, Engine & Propeller Directorate, 

Aircraft Certification Service. 

[FR Doc. 2016–26011 Filed 11–2–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 33, 40, 45, 153, 157, 340– 

347, 380 

[Docket No. AD12–6–002] 

Retrospective Analysis of Existing 

Rules; Notice of Staff Memorandum 

Take notice that the Commission staff 

is issuing a memorandum setting forth 

certain proposed revisions to the 

Commission’s regulations affecting 

interlocking directorates, seismic data 

requirements for liquefied natural gas 

facilities, and oil pipeline rates. The 

memorandum is being issued pursuant 

to the November 8, 2011 Plan for 

Retrospective Analysis of Existing Rules 

prepared in response to Executive Order 

13579, which requested independent 

regulatory agencies issue plans for 

periodic retrospective analysis of their 

existing regulations. The Staff Memorandum is being 

placed in the record in the abovereferenced administrative docket. The 

Staff Memorandum will also be 

available on the Commission’s Web site 

at http://www.ferc.gov. 

Comments on the Staff Memorandum 

should be filed within 30 days of the 

issuance of this Notice. The 

Commission encourages electronic 

submission of comments in lieu of 

paper using the ‘‘eFiling’’ link at http:// 

www.ferc.gov. Persons unable to file 

electronically should submit an original 

of the comment to the Federal Energy 

Regulatory Commission, 888 First Street 

NE., Washington, DC 20426. 

All filings in this docket are 

accessible on-line at http://

www.ferc.gov, using the ‘‘eLibrary’’ link. 

There is an ‘‘eSubscription’’ link on the 

Web site that enables subscribers to 

receive email notification when a 

document is added to a subscribed 

docket. For assistance with any FERC 

Online service, please email 

FERCOnlineSupport@ferc.gov, or call 

(866) 208–3676 (toll free). For TTY, call 

(202) 502–8659. 

Questions regarding this Notice 

should be directed to: Kenneth Yu, 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street NE., Washington, DC 20426, 

202–502–8482, Kenneth.Yu@ferc.gov. 

Dated: October 28, 2016. 

Nathaniel J. Davis, Sr., 

Deputy Secretary. 

[FR Doc. 2016–26539 Filed 11–2–16; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–114734–16] 

RIN 1545–BN51 

United States Property Held by 

Controlled Foreign Corporations 

Through Partnerships With Special 

Allocations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations that provide rules 

regarding the determination of the 

amount of United States property 

treated as held by a controlled foreign 

corporation (CFC) through a 

partnership. The proposed regulations 

affect United States shareholders of 

CFCs. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by February 1, 2017. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–114734–16), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–114734– 

16), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent electronically 

via the Federal eRulemaking Portal at 

http://www.regulations.gov (IRS REG– 

114734–16). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Rose E. Jenkins, (202) 317–6934; 

concerning submissions of comments or 

requests for a public hearing, Regina 

Johnson, (202) 317–6901 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

In the Rules and Regulations section 

of this issue of the Federal Register, the 

Department of Treasury (Treasury 

Department) and the IRS are issuing 

final regulations that amend the Income 

Tax Regulations (26 CFR part 1) relating 

to sections 954 and 956. Under § 1.956– 

4(b), a CFC that is a partner in a 

partnership determines its share of 

United States property held by the 

partnership in accordance with the 

CFC’s liquidation value percentage in 

the partnership, or, when relevant, 

based on a special allocation of income 

(or, where appropriate, gain) from the 

property. This document proposes to 

amend § 1.956–4(b) so that a CFC that is 

a partner in a controlled partnership 

determines its share of United States 

property held by the partnership under 

the liquidation value percentage 

method, regardless of the existence of 

any special allocation of income or gain 

from the property. 

Explanation of Provisions 

Section 956 determines the amount 

that a United States shareholder (as 

defined in section 951(b)) of a CFC must 

include in gross income with respect to 

the CFC under section 951(a)(1)(B). This 

amount is determined, in part, based on 

the average of the amounts of United 

States property held, directly or 

indirectly, by the CFC at the close of 

each quarter during its taxable year. For 

this purpose, in general, the amount 

taken into account with respect to any 

United States property is the adjusted 

basis of the property, reduced by any 

liability to which the property is 

subject. See section 956(a) and § 1.956– 

1(e). Section 956(e) grants the Secretary 

authority to prescribe such regulations 

as may be necessary to carry out the 

purposes of section 956, including 

regulations to prevent the avoidance of 

section 956 through reorganizations or 

otherwise. 

Under § 1.956–4(b), a CFC that is a 

partner in a partnership generally is 

treated as holding its share of United 

States property held by the partnership 

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