Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Rules and Regulations 46669 

1The Board’s PSR policy is available at https:// 

www.federalreserve.gov/paymentsystems/files/psr_

policy.pdf. 

2 80 FR 58248 (Sep. 28, 2015). NACHA, whose 

membership consists of insured financial 

institutions and regional payment associations, 

establishes network-wide ACH rules through its 

Operating Rules and Guidelines. As an ACH 

operator, the Reserve Banks, through Operating 

Circular 4, incorporate NACHA’s Operating Rules 

and Guidelines as rules that govern clearing and 

settlement of commercial ACH items by the Reserve 

Banks, except for those provisions specifically 

excluded in the Operating Circular. 

3The Fiscal Service amended part 210 to address 

changes to the NACHA Operating Rules, including 

NACHA’s same-day amendments. See 82 FR 42597 

(Sep. 11, 2017). Part 210 governs the use of ACH 

by Federal agencies and incorporates the NACHA 

Operating Rules, with certain exceptions. 

4 31 CFR 210.2(d)(7) (as amended Sept. 11, 2017). 

5With the exception of paper returns and paper 

notifications of change of prior-dated items that 

only post at 5:00 p.m.; and paper returns of sameday forward items that only post at 5:30 p.m. 

Institutions that are monitored in real time must 

fund the total amount of their commercial ACH 

credit originations in order for the transactions to 

be processed. If the Federal Reserve receives 

commercial ACH credit transactions from 

institutions monitored in real time after the 

scheduled close of the Fedwire Funds Service, 

these transactions will be processed at 12:30 a.m. 

the next business day, or by the ACH deposit 

deadline, whichever is earlier. The Account 

Balance Monitoring System provides intraday 

account information to the Reserve Banks and 

institutions and is used primarily to give authorized 

Reserve Bank personnel a mechanism to control 

and monitor account activity for selected 

institutions. For more information on ACH 

transaction processing, refer to the ACH Settlement 

Day Finality Guide available through the Federal 

Reserve Financial Services Web site at http://

www.frbservices.org. 

6For the three commercial check transaction 

posting times, the Reserve Banks will post credits 

and debits to institutions’ accounts for checks 

deposited and presented, respectively, at least 30 

minutes before the posting time. 

7The Reserve Banks will identify and notify 

institutions with Treasury-authorized penalties on 

Thursdays. In the event that Thursday is a holiday, 

the Reserve Banks will identify and notify 

institutions with Treasury-authorized penalties on 

the following business day. Penalties will then be 

posted on the business day following notification. 

8With the exception of paper returns and paper 

notifications of change (NOCs) of prior-dated items 

that only post at 5:00 p.m.; paper returns of sameday forward items that only post at 5:30 p.m.; and 

FedLine Web returns and FedLine Web NOCs that 

only post at 8:30 a.m. and 5:00 p.m., depending on 

when the item is received by Reserve Banks. 

9With the exception of paper returns of same-day 

forward items that only post at 5:30 p.m. 

10With the exception of paper returns and paper 

notifications of change (NOCs) of prior-dated items 

that only post at 5:00 p.m.; and FedLine Web 

returns and FedLine Web NOCs that only post at 

8:30 a.m. and 5:00 p.m., depending on when the 

item is received by Reserve Banks. 

the Deaf (TDD) only, contact 202–263– 

4869; Board of Governors of the Federal 

Reserve System, 20th and C Streets 

NW., Washington, DC 20551. 

SUPPLEMENTARY INFORMATION: 

Background 

The Board’s PSR policy establishes 

the procedures for measuring balances 

intraday in institutions’ accounts at the 

Reserve Banks by setting forth the times 

at which credits and debits for various 

types of transactions are posted to those 

accounts (‘‘the posting rules’’).1 The 

application of these posting rules 

determines an institution’s intraday 

account balance and whether it has 

incurred a negative balance (daylight 

overdraft). 

On September 23, 2015, the Board 

approved enhancements to the Reserve 

Banks’ FedACH® SameDay Service 

(FedACH SameDay Service) in light of 

amendments to NACHA—The 

Electronic Payments Association’s 

Operating Rules and Guidelines.2 The 

NACHA amendments, as incorporated 

into Operating Circular 4, become 

effective in three phases, beginning with 

same-day credits in September 2016, 

same-day debits in September 2017, and 

faster funds availability in March 2018. 

Next-day settlement remains available. 

The Board is revising the PSR policy’s 

posting rules for same-day ACH 

transactions to conform to amendments 

to 31 CFR part 210 (part 210) announced 

on September 11, 2017 by Fiscal 

Service.3 Specifically, the amended 

posting rules conform to the decision of 

the Fiscal Service to allow Federal 

agencies to originate and receive sameday entries beginning September 15, 

2017.4

Policy on Payment System Risk 

The Federal Reserve Policy on 

Payment System Risk, section II.A, 

under the heading ‘‘Procedures for 

Measuring Daylight Overdrafts’’ and the 

subheadings ‘‘Post at 8:30 a.m. eastern 

time,’’ ‘‘Post by 1:00 p.m. eastern time,’’ 

‘‘Post at 5:00 p.m. eastern time,’’ and 

‘‘Post at 5:30 p.m. eastern time,’’ is 

amended as follows: 

Post at 8:30 a.m. eastern time: 

+/¥ Term deposit maturities and 

accrued interest 

+/¥ Government and commercial 

ACH transactions, including return 

items 5

+/¥ Commercial check transactions, 

including returned checks 6

+ Treasury checks, postal money 

orders, local Federal Reserve Bank 

checks, and savings bond 

redemptions in separately sorted 

deposits; these items must be 

deposited by the latest applicable 

deposit deadline preceding the 

posting time 

+ Advance-notice Treasury 

investments 

¥ Penalty assessments for tax 

payments from the Treasury 

Investment Program (TIP).7

Post by 1:00 p.m. eastern time: 

+/¥ Commercial check transactions, 

including returned checks 

+/¥ Government and commercial 

FedACH SameDay Service 

transactions, including return 

items 8

+ Same-day Treasury investments. 

Post at 5:00 p.m. eastern time: 

+/¥ Government and commercial 

FedACH SameDay Service 

transactions, including return 

items 9

+ Treasury checks, postal money 

orders, and savings bond 

redemptions in separately sorted 

deposits; these items must be 

deposited by the latest applicable 

deposit deadline preceding the 

posting time 

+ Local Federal Reserve Bank checks; 

these items must be presented 

before 3:00 p.m. eastern time 

Post at 5:30 p.m. eastern time: 

+/¥ Government and commercial 

FedACH SameDay Service return 

transactions 10

+/¥ Commercial check transactions, 

including returned checks 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Director of the Division of Reserve Bank 

Operations and Payment Systems under 

delegated authority, October 3, 2017. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2017–21602 Filed 10–5–17; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2017–0254; Product 

Identifier 2017–NE–10–AD; Amendment 39– 

19066; AD 2017–20–09] 

RIN 2120–AA64 

Airworthiness Directives; General 

Electric Company Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for all 

General Electric Company (GE) CF34–8E 

model turbofan engines. This AD was 

prompted by a report that using a 

certain repair procedure for the fan 

outlet guide vane (OGV) frame could 

alter the strength capability of the fan 

OGV frame. This AD requires 

replacement of all fan OGV frames 


asabaliauskas on DSKBBXCHB2PROD with RULES
46670 Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Rules and Regulations 

repaired using this procedure. We are 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective November 

13, 2017. 

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; fax: 

513–552–3329; email: geae.aoc@ge.com. 

You may view this service information 

at the FAA, Engine and Propeller 

Standards Branch, 1200 District 

Avenue, Burlington, MA. For 

information on the availability of this 

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

It is also available on the internet at 

http://www.regulations.gov by searching 

for and locating Docket No. FAA–2017– 

0254. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2017– 

0254; 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 final rule, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (phone: 800–647–5527) is 

Document Management Facility, 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: 

David Bethka, Aerospace Engineer, ECO 

Branch, FAA, 1200 District Avenue, 

Burlington, MA 01803; phone: 781– 

238–7129; fax: 781–238–7199; email: 

david.bethka@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all GE CF34–8E model turbofan 

engines. The NPRM published in the 

Federal Register on June 8, 2017 (82 FR 

26615). The NPRM was prompted by a 

report that using a certain repair 

procedure for the fan OGV frame could 

alter the strength capability of the fan 

OGV frame because the repair procedure 

included an improper heat cycle. The 

NPRM proposed to require replacement 

of all fan OGV frames repaired using 

this procedure. This condition, if not 

corrected, could result in failure of the 

fan OGV frame, engine separation, and 

loss of the airplane. 

Comments 

We 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. 

Support for the NPRM 

The Air Line Pilots Association 

supports the NPRM. 

Request To Change Applicability 

Horizon Air requested we include a 

list of fan OGV frame affected serial 

numbers (S/Ns) in this AD. J-Air 

requested that this AD include GE 

Service Bulletin (SB) CF34–8E–AL S/B 

72–0183, Revision 3, dated March 7, 

2017, for a list of affected OGV frame 

S/Ns known to GE. Further, the two 

commenters explained that operators 

are not necessarily aware of which 

repairs have been performed. The 

changes were requested to take the 

burden off the operator to determine AD 

applicability. 

We partially agree. We disagree that 

SB CF34–8E–AL S/B 72–0183 provides 

a list of all affected OGV frame S/Ns. 

The list of known affected part S/Ns is 

based on the best available data, but is 

not comprehensive. It may be possible 

that some OGV frames were repaired, 

but are not known to GE and are not 

included in GE SB CF34–8E–AL S/B 

72–0183. Operators are responsible for 

checking engine records to determine 

AD applicability. 

We agree to unburden operators to the 

maximum extent possible. In the 

interest of aiding operators to determine 

affected part S/Ns, we included GE SB 

CF34–8E–AL S/B 72–0183 in the 

Related Service Information section in 

the preamble of this final rule, with a 

note that GE SB CF34–8E–AL S/B 72– 

0183 does not include a comprehensive 

list of all affected parts. GE SB CF34– 

8E–AL S/B 72–0183 includes a list of 

OGV frame S/Ns known to GE that have 

been repaired to GEK 112031 72–00–23, 

REPAIR 006. 

Conclusion 

We reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting this 

final rule with the change described 

previously. We have determined that 

these minor changes: 

• Are consistent with the intent that 

was proposed in the NPRM for 

correcting the unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM. 

We also determined that these 

changes will not increase the economic 

burden on any operator or increase the 

scope of this final rule. 

Related Service Information 

We reviewed GE CF34–8E Engine 

Manual, GEK 112031, 72–00–23, 

REPAIR 006. The repair describes 

procedures for applying a dry-film 

lubricant to the fan OGV frame with 

heat curing. 

We also reviewed GE SB CF34–8E–AL 

S/B 72–0183, Revision 3, dated March 7, 

2017. The SB provides instructions to 

replace the fan OGV frames repaired as 

specified in GE CF34–8E Engine 

Manual, GEK 112031, 72–00–23, 

REPAIR 006. However, the SB does not 

provide a comprehensive list of affected 

parts. The SB provides a list of OGV 

frame S/Ns known to GE that have been 

repaired to GEK 112031 72–00–23 

REPAIR 006. 

Costs of Compliance 

We estimate that this AD affects 42 

engines installed on airplanes of U.S. 

registry. 

We estimate the following costs to 

comply with this AD: 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per 

product 

Cost on U.S. 

operators 

Fan OGV frame part—annual, prorated cost 0 work-hour × $85 per hour = $0.00 .............. $12,300 $12,300 $516,600 

According to the manufacturer, some 

of the costs of this AD may be covered 

under warranty, thereby reducing the 

cost impact on affected individuals. We 

do not control warranty coverage for 

affected individuals. As a result, we 

have included all costs in our cost 

estimate. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 


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Federal Register / Vol. 82, No. 193 / Friday, October 6, 2017 / Rules and Regulations 46671 

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. 

This AD is issued in accordance with 

authority delegated by the Executive 

Director, Aircraft Certification Service, 

as authorized by FAA Order 8000.51C. 

In accordance with that order, issuance 

of ADs is normally a function of the 

Compliance and Airworthiness 

Division, but during this transition 

period, the Executive Director has 

delegated the authority to issue ADs 

applicable to engines, propellers, and 

associated appliances to the Manager, 

Engine and Propeller Standards Branch, 

Policy and Innovation Division. 

Regulatory Findings 

This AD will not have federalism 

implications under Executive Order 

13132. This AD will not have a 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

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

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), 

(3) Will not affect intrastate aviation 

in Alaska, 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. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 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 adding 

the following new airworthiness 

directive (AD): 

2017–20–09 General Electric Company: 

Amendment 39–19066; Docket No. 

FAA–2017–0254; Product Identifier 

2017–NE–10–AD. 

(a) Effective Date 

This AD is effective November 13, 2017. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to all General Electric 

Company (GE) CF34–8E2; CF34–8E2A1; 

CF34–8E5; CF34–8E5A1; CF34–8E5A2; 

CF34–8E6; and CF34–8E6A1 model turbofan 

engines. 

(d) Subject 

Joint Aircraft System Component (JASC), 

7270, Turbine Engine Bypass Section. 

(e) Unsafe Condition 

This AD was prompted by a report that 

using a certain repair procedure for the fan 

outlet guide vane (OGV) frame could alter the 

strength capability of the fan OGV frame. We 

are issuing this AD to prevent failure of the 

fan OGV frame, engine separation, and loss 

of the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Required Actions 

(1) For engines with a fan OGV frame 

installed that was repaired using GE CF34– 

8E Engine Manual, GEK 112031, 72–00–23, 

REPAIR 006: 

(i) If the fan OGV frame has 24,900 cycles 

since new (CSN) or more on the effective date 

of this AD, remove the OGV frame from 

service within 100 cycles after the effective 

date of this AD. 

(ii) If the OGV frame has less than 24,900 

CSN on the effective date of this AD, remove 

the fan OGV frame from service at the next 

shop visit after the effective date of this AD, 

or before exceeding 25,000 CSN, whichever 

occurs earlier. 

(2) After the effective date of this AD, do 

not install a fan OGV frame that was repaired 

using GE CF34–8E Engine Manual, GEK 

112031, 72–00–23, REPAIR 006. 

(h) 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 

flanges. 

(i) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, ECO Branch, FAA, has 

the authority to approve AMOCs for this AD, 

if requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the certification office, 

send it to the attention of the person 

identified in paragraph (j)(1) of this AD. You 

may email your request to: ANE–AD–AMOC@

faa.gov. 

(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. 

(j) Related Information 

(1) For more information about this AD, 

contact David Bethka, Aerospace Engineer, 

ECO Branch, FAA, 1200 District Avenue, 

Burlington, MA 01803; phone: 781–238– 

7129; fax: 781–238–7199; email: 

david.bethka@faa.gov. 

(2) For General Electric service information 

identified in this AD, contact General Electric 

Company, GE-Aviation, Room 285, 1 

Neumann Way, Cincinnati, OH 45215, 

phone: 513–552–3272; fax: 513–552–3329; 

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

service information at the FAA, Engine and 

Propeller Standards Branch, 1200 District 

Avenue, Burlington, MA. For information on 

the availability of this material at the FAA, 

call 781–238–7125. 

(k) Material Incorporated by Reference 

None. 

Issued in Burlington, Massachusetts, on 

September 28, 2017. 

Robert J. Ganley, 

Manager, Engine and Propeller Standards 

Branch, Aircraft Certification Service. 

[FR Doc. 2017–21345 Filed 10–5–17; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

Income Taxes 

CFR Correction 

In Title 26 of the Code of Federal 

Regulations, Part 26, §§ 1.401 to 1.409, 

revised as of April 1, 2017, on page 235, 

in § 1.401(a)(9)–6, at the end of 

paragraph (d)(3)(i), insert the words ‘‘as 

of the date of purchase’’. 

[FR Doc. 2017–21742 Filed 10–5–17; 8:45 am] 

BILLING CODE 1301–00–D 


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