10326 Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Rules and Regulations 

who are not senior officers and who 

would not otherwise be considered 

‘‘highly compensated employees’’ but 

for payments related to or change(s) in 

the value of the employee’s qualified 

pension plan. Also, the qualified plan 

must have been available to all 

employees on the same basis at the time 

the employee joined the plan. Thus, the 

proposed rule did not seek to change the 

current reporting requirement regarding 

payments such as those concerning the 

ICBA. Rather, if any such payout to the 

employee or change(s) in value to their 

plan is due to a benefit plan that is not 

a qualified plan and the plan was not 

offered to all employees on the same 

basis when the employee joined the 

plan, then the payout or change(s) in 

value would be included in determining 

whether the employee’s compensation 

reached the five highest paid threshold. 

Thus, we believe that the proposed rule 

increases the effectiveness and 

transparency of the disclosure and 

better achieves the original intent of the 

rule, which we did not change. 

The ICBA also expressed concern that 

large one-time lump sum payments 

made to numerous employees at the 

same time from a qualified pension plan 

that was available to all employees on 

the same basis at the time they joined 

the plan could represent significant cash 

outlays for the institution during a 

reporting period. The ICBA believes that 

System institution owners should be 

made aware of these payouts. We agree 

with the ICBA and would expect that 

such payouts be included in the 

financial statements or notes thereto or 

discussed in the management’s 

discussion and analysis section of the 

annual report if material to the 

institution’s financial condition and 

results of operations. As discussed 

above, the intent of this specific 

disclosure item was not and is not to 

include such payments in the 

calculation of the top five highest paid 

employees. 

In its comment letter, the ICBA also 

makes a number of recommendations, 

such as to disclose all employees’ 

compensation if that compensation 

exceeds the average income of the 

citizens in the surrounding geographic 

area, or to disclose the compensation for 

the twenty-five (25) highest paid 

employees for larger System 

institutions. We believe these 

recommendations go beyond the scope 

of the proposed rule and cannot be 

addressed in this rulemaking. 

B. Explanatory Notes and Method of 

Compliance 

The FCB, the Farm Credit Council, 

and the System association supported 

our proposed rule in their comment 

letters. Furthermore, they expressed that 

our proposal improves the disclosure 

language and aligns it with the intended 

purpose. The FCB also offered two 

constructive suggestions. The first 

suggestion was to allow System 

institutions affected by our proposed 

rule to disclose in a note to the Table 

that the calculation formula changed 

and describe the reason for the change 

and its effects. Also, because data is 

reported in the Table for 3 years, the 

FCB’s second suggestion was that each 

System institution be allowed to choose 

the method of compliance that works 

best for that institution’s situation. We 

agree with the suggestion regarding 

explanatory notes, but do not believe a 

change to our proposal is necessary. 

Such disclosure is not prohibited so 

long as the disclosure is not misleading, 

incomplete or inaccurate. Whether a 

System institution opts to restate one or 

all of the prior years’ disclosures or to 

report the data prospectively beginning 

for fiscal year ending 2015, we would 

expect that any change in the method of 

calculations versus prior years’ 

disclosures be described in a footnote to 

the Table to the extent needed so that 

the reported data will not be misleading 

or incomplete. Therefore, we agree with 

the FCB’s suggestion to the extent that 

the 3-year reporting period raises issues 

for affected institutions, but we do not 

believe that a change to the regulation 

language is necessary. We have 

addressed this issue in the compliance 

date information. 

IV. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), the FCA hereby certifies that the 

final rule would not have a significant 

economic impact on a substantial 

number of small entities. Each of the 

banks in the Farm Credit System, 

considered together with its affiliated 

associations, has assets and annual 

income in excess of the amounts that 

would qualify them as small entities. 

Therefore, Farm Credit System 

institutions are not ‘‘small entities’’ as 

defined in the Regulatory Flexibility 

Act. 

List of Subjects in 12 CFR Part 620 

Accounting, Agriculture, Banks, 

banking, Reporting and recordkeeping 

requirements, Rural areas. 

For the reasons stated in the 

preamble, part 620 of chapter VI, title 12 

of the Code of Federal Regulations is 

amended as follows: 

PART 620—DISCLOSURE TO 

SHAREHOLDERS 

■ 1. The authority citation for part 620 

continues to read as follows: 

Authority: Secs. 4.3, 4.3A, 4.19, 5.9, 5.19 

of the Farm Credit Act (12 U.S.C. 2154, 

2154a, 2207, 2243, 2252, 2254); sec. 424 of 

Pub. L. 100–233, 101 Stat. 1568, 1656, sec. 

514 of Pub. L. 102–552, 106 Stat. 4102. 

■ 2. Section 620.6(c)(2)(i) is revised to 

read as follows: 

§ 620.6 Disclosures in the annual report to 

shareholders relating to directors and 

senior officers. 

* * * * * 

(c) * * * 

(2) * * * 

(i) If applicable, when any employee 

who is not a senior officer has annual 

compensation at a level that is among 

the five highest paid by the institution 

during the reporting period, include the 

highly compensated employee(s) in the 

aggregate number and amount of 

compensation reported in the 

Compensation Table. However, exclude 

any such employee from the 

Compensation Table if the employee 

would be considered highly 

compensated solely because of 

payments related to or change(s) in 

value of the employee’s qualified 

pension plan provided that the plan was 

available to all similarly situated 

employees on the same basis at the time 

the employee joined the plan. 

* * * * * 

Dated: February 19, 2015. 

Mary Alice Donner, 

Acting Secretary, Farm Credit Administration 

Board. 

[FR Doc. 2015–04023 Filed 2–25–15; 8:45 am] 

BILLING CODE 6705–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2014–0710; Special 

Conditions No. 25–574–SC 

Special Conditions: Boeing Model 767– 

2C Series Airplanes; Isolation or 

Protection of Airplane ElectronicSystem Security From Unauthorized 

Internal Access 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for Boeing Model 767–2C series 


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Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Rules and Regulations 10327 

airplanes. These airplanes, as modified 

by The Boeing Company, will have a 

novel or unusual design feature 

associated with airplane electronicsystem security protection or isolation 

from unauthorized internal access. The 

applicable airworthiness regulations do 

not contain adequate or appropriate 

safety standards for this design feature. 

These 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: This action is effective on The 

Boeing Company on February 26, 2015. 

We must receive your comments by 

April 13, 2015. 

ADDRESSES: Send comments identified 

by docket number FAA–2014–0710 

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 or 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 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: The FAA will post all 

comments it receives, without change, 

to http://www.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: Background documents or 

comments received may be read at 

http://www.regulations.gov/ at any time. 

Follow the online instructions for 

accessing the docket or go to 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: 

Varun Khanna, FAA, Airplane and 

Flightcrew Interface Branch, ANM–111, 

Transport Airplane Directorate, Aircraft 

Certification Service, 1601 Lind Avenue 

SW., Renton, Washington 98057–3356; 

telephone (425) 227–1298; facsimile 

(425) 227–1320. 

SUPPLEMENTARY INFORMATION: The FAA 

has determined that notice of, and 

opportunity for prior public comment 

on, these special conditions is 

impracticable because these procedures 

would significantly delay issuance of 

the design approval and thus delivery of 

the affected airplane. In addition, the 

substance of these special conditions 

has been subject to the public-comment 

process in several prior instances with 

no substantive comments received. The 

FAA therefore finds that good cause 

exists for making these special 

conditions effective upon publication in 

the Federal Register. 

Comments Invited 

We invite interested people to take 

part in this rulemaking by sending 

written comments, data, or views. The 

most helpful comments reference a 

specific portion of the special 

conditions, explain the reason for any 

recommended change, and include 

supporting data. 

We will consider all comments we 

receive on or before the closing date for 

comments. We may change these special 

conditions based on the comments we 

receive. 

Background 

On January 18, 2010, Boeing applied 

for an amendment to Type Certificate 

No. A1NM to include a new Model 767– 

2CX series airplane, a derivative of the 

767–200, which later was renamed 767– 

2C. Later, Boeing requested, and the 

FAA approved, an extension to the date 

of application for FAA amended type 

certification to December 22, 2010. 

The Model 767–2C is a freighter 

airplane equipped with Pratt & Whitney 

PW4062 engines. This freighter has a 

maximum takeoff weight of 415,000 

pounds and can be configured to carry 

up to 11 supernumeraries (see 

Exemption No. 10691). 

Type-Certification Basis 

The regulations listed in the type 

certificate are commonly referred to as 

the ‘‘original type-certification basis.’’ 

The regulations to be listed in A1NM 

are as follows: 

Under the provisions of Title 14, Code 

of Federal Regulations (14 CFR) 21.101, 

Boeing must show that the Boeing 

Model 767–2C series airplane meets the 

applicable provisions of part 25, as 

amended by Amendments 25–1 through 

25–130, and 14 CFR 25.1316 at 

Amendment 25–134, except for earlier 

amendments as agreed upon by the 

FAA. These regulations will be listed in 

Type Certificate No. A1NM after typecertification approval of the 767–2C. 

14 CFR part 26 as amended by 

Amendments 26–1 through 26–6, and 

any later amendments in existence at 

the time of certification per 14 CFR 26.5. 

For any future part 26 Amendments, the 

holder of this type certificate must 

demonstrate compliance with the 

applicable sections. 

14 CFR part 34 as amended by 

Amendments 34–1 through 34–5A, and 

any later amendments in existence at 

the time of certification. 

14 CFR part 36 as amended by 

Amendments 36–1 through 36–29, and 

any later amendments in existence at 

the time of certification. 

The certification basis also includes 

certain special conditions, exemptions, 

or later amended sections of the 

applicable part that are not relevant to 

these special conditions. 

If the Administrator finds that the 

applicable airworthiness regulations 

(i.e., 14 CFR part 25) do not contain 

adequate or appropriate safety standards 

for the Model 767–2C series airplane 

because of a novel or unusual design 

feature, special conditions are 

prescribed under § 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 novel or unusual 

design feature, or should any other 

model already included on the same 

type certificate be modified to 

incorporate the same novel or unusual 

design feature, these special conditions 

would also apply to the other model 

under § 21.101. 

In addition to the applicable 

airworthiness regulations and special 

conditions, the Model 767–2C series 

airplane must comply with the fuel-vent 

and exhaust-emission requirements of 

14 CFR part 34, and the noisecertification requirements of 14 CFR 

part 36. The FAA must issue a finding 

of regulatory adequacy under § 611 of 

Public Law 92–574, the ‘‘Noise Control 

Act of 1972.’’ 

The FAA issues special conditions, as 

defined in 14 CFR 11.19, under § 11.38, 

and they become part of the typecertification basis under § 21.101. 

Novel or Unusual Design Feature 

The Boeing Model 767–2C series 

airplane will incorporate the following 

novel or unusual design feature: 


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10328 Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Rules and Regulations 

The electronic-system network 

architecture for the Model 767–2C series 

airplane introduces potential security 

risks and vulnerabilities not addressed 

in current regulations and airplane-level 

or system-level safety-assessment 

methods. 

This network architecture allows 

connection to previously isolated data 

networks connected to systems that 

perform functions required for the safe 

operation of the airplane. This data 

network and design integration may 

result in security vulnerabilities from 

intentional or unintentional internalconnection corruption of data and 

systems critical to the safety and 

maintenance of the airplane. 

Discussion 

The Boeing Model 767–2C series 

airplane design introduces the potential 

for unauthorized persons to access, from 

internal connection, airplane-control 

domain and operator-informationservices domain in the passengerservices domain. The Model 767–2C 

design further introduces the potential 

for security vulnerabilities related to the 

introduction of viruses, worms, user 

mistakes, and intentional sabotage of 

airplane networks, systems, and 

databases. As such, these special 

conditions address these vulnerabilities. 

The digital systems architecture for 

the Boeing Model 767–2C series 

airplanes is composed of several 

connected networks. This network 

architecture is used for a diverse set of 

functions, including: 

1. Flight-safety related control and 

navigation systems, 

2. operator business and 

administrative support, and 

3. passenger entertainment. 

The existing regulations and guidance 

material did not anticipate this type of 

system architecture or electronic access 

to airplane systems. Furthermore, 

regulations, and current system safetyassessment policy and techniques, do 

not address potential security 

vulnerabilities, which could be caused 

by unauthorized access to airplane data 

buses and servers. These special 

conditions are meant to ensure that 

security, integrity, and availability of 

airplane systems are not compromised 

by certain wired or wireless electronic 

connections between airplane data 

busses and networks. 

Special conditions have been applied 

on past airplane programs to require 

consideration of related security 

vulnerabilities. These special conditions 

are similar to those previously applied, 

except that the scope has been adjusted 

to be consistent with those features 

unique to the Model 767–2C series 

airplane. 

Applicability 

As discussed above, these special 

conditions apply to Boeing Model 767– 

2C series airplanes. Should Boeing 

apply later for a change to the type 

certificate to include another model 

incorporating the same novel or unusual 

design feature, the special conditions 

would apply to that model as well. 

Conclusion 

This action affects only certain novel 

or unusual design features on one model 

series of airplane. It is not a rule of 

general applicability. 

The substance of these special 

conditions has been subjected to the 

notice and comment period in several 

prior instances, and has been derived 

without substantive change from those 

previously issued. It is unlikely that 

prior public comment would result in a 

significant change from the substance 

contained herein. Therefore, because a 

delay would significantly affect the 

certification of the airplane, the FAA 

has determined that prior public notice 

and comment are unnecessary and 

impracticable, and good cause exists for 

adopting these special conditions upon 

publication in the Federal Register. 

The FAA is requesting comments to 

allow interested persons to submit 

views that may not have been submitted 

in response to the prior opportunities 

for comment described above. 

List of Subjects in 14 CFR part 25 

Aircraft, Aviation safety, Reporting 

and recordkeeping requirements. 

The authority citation for these 

special conditions is as follows: 

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

44702, 44704. 

The Special Conditions 

Accordingly, pursuant to the 

authority delegated to me by the 

Administrator, the following special 

conditions are issued as part of the typecertification basis for Boeing Model 

767–2C series airplanes. 

1. The applicant must ensure that the 

design provides isolation from, or 

airplane electronic-system security 

protection against, access by 

unauthorized sources internal to the 

airplane. The design must prevent 

inadvertent and malicious changes to, 

and all adverse impacts upon, airplane 

equipment, systems, networks, or other 

assets required for safe flight and 

operations. 

2. The applicant must establish 

appropriate procedures to allow the 

operator to ensure that continued 

airworthiness of the airplane is 

maintained, including all post-typecertification modifications that may 

have an impact on the approved 

electronic-system security safeguards. 

Issued in Renton, Washington, on February 

19, 2015. 

John J. Piccola, Jr., 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2015–03969 Filed 2–25–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2014–0711; Special 

Conditions No. 25–575–SC] 

Special Conditions: Boeing Model 767– 

2C Series Airplanes; Airplane 

Electronic-System Security Protection 

From Unauthorized External Access 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for Boeing Model 767–2C series 

airplanes. These airplanes, as modified 

by The Boeing Company, will have a 

novel or unusual design feature 

associated with airplane electronicsystem security protection or isolation 

from unauthorized external access. The 

applicable airworthiness regulations do 

not contain adequate or appropriate 

safety standards for this design feature. 

These 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: This action is effective on The 

Boeing Company on February 26, 2015. 

We must receive your comments by 

April 13, 2015. 

ADDRESSES: Send comments identified 

by docket number FAA–2014–0711 

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 or Courier: Take 

comments to Docket Operations in 


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