### 68983 Federal Register / Vol. 78, No. 222 / Monday, November 18, 2013 / Rules and Regulations

provide the same safeguards as are provided by physical presence.

* * * * *

■ 6. Revise § 850.201 to read as follows:

**§ 850.201 Applications for benefits.**

(a) Hardcopy applications and related submissions that are otherwise required to be made to an individual’s employing agency (other than by statute) may instead be submitted electronically in such form as the Director prescribes under § 850.104.

(b) Data provided under subpart C of this part are the basis for adjudicating claims for CSRS and FERS retirement benefits, and will support the administration of FEGLI, FEHB and RFEHB coverage for annuitants, under this part.

**§ 850.202 [Amended]**

■ 7. Amend § 850.202 by removing the paragraph parenthetical designation ‘‘(a)’’ and by removing paragraph (b).

■ 8. Revise § 850.203 to read as follows:

**§ 850.203 Other elections.**

Any other election may be effected in such form as the Director prescribes under § 850.104. Such elections include but are not limited to elections of coverage under CSRS, FERS, FEGLI, FEHB, or RFEHB by individuals entitled to elect such coverage; applications for service credit and applications to make deposit; and elections regarding the withholding of State income tax from annuity payments.

■ 9. Revise § 850.301 to read as follows:

**§ 850.301 Electronic records; other acceptable records.** 

(a) Acceptable electronic records for retirement and insurance processing by OPM include—

(1) Electronic employee data, including an eIRR or an ERR, submitted by an agency, agency payroll office, or Shared Service Center, or other entity and stored within the EHRI Retirement Data Repository, the eIRR records storage database, or other OPM database.

(2) Electronic Official Personnel Folder (eOPF) data; and

(3) Documents, including hardcopy versions of the Individual Retirement Record (SF 2806 or SF 3100), or data or images obtained from such documents, including images stored in EDMS, that are converted to an electronic or digital form by means of image scanning or other forms of electronic or digital
conversion.

(b) Documents that are not converted to an electronic or digital form will continue to be acceptable records for processing by the retirement and insurance processing system.

■ 10. Revise § 850.401 to read as follows:

**§ 850.401 Electronic notice of coverage**
**determination.**

An agency or other entity that submits electronic employee records directly or through a Shared Service Center must include in the notice of law enforcement officer, firefighter, or nuclear materials retirement coverage, required by §§ 831.811(a), 831.911(a), 842.808(a), or 842.910(a) of this chapter, the position description number, or other unique alphanumeric identifier, in the notice for the position for which law enforcement officer, firefighter, or nuclear materials courier retirement coverage has been approved. Agencies or other entities must submit position descriptions to OPM in a PDF document to combox address: combox@opm.gov

. [FR Doc. 2013–27534 Filed 11–15–13; 8:45 am]

**BILLING CODE 6325–38–P**

**DEPARTMENT OF AGRICULTURE**

**Agricultural Marketing Service**

**7 CFR Part 27**

**[AMS–CN–13–0043]**

**RIN 0581–AD33**

**Cotton Futures Classification: Optional Classification Procedure** 

**AGENCY :**  Agricultural Marketing Service,
USDA.

**ACTION :**  Final rule.

**SUMMARY :**  The Agricultural Marketing Service (AMS) is amending regulations to allow for the addition of an optional cotton futures classification procedure— identified and known as ‘‘registration’’ by the U.S. cotton industry and the Intercontinental Exchange (ICE). In response to requests from the U.S. cotton industry and ICE, AMS will offer a futures classification option whereby cotton bales may be certificated for the purpose of an exchange’s cotton futures contract using Smith-Doxey data to verify that submitted bales meet more restrictive quality requirements and age parameters established by that exchange. AMS anticipates that the futures classification option will be available in time for the implementation of ICE’s Cotton Resolution No. 2, which is scheduled to commence with the March 2014 contract month.

**DATES :**  Effective Date: November 19,

2013. **FOR FURTHER INFORMATION CONTACT :**  Darryl Earnest, Deputy Administrator, Cotton & Tobacco Program, AMS, USDA, 3275 Appling Road, Room 11, Memphis, TN 38133. Telephone (901) 384–3060, facsimile (901) 384–3021, or email darryl.earnest@ams.usda.gov.

**SUPPLEMENTARY INFORMATION :** 

Executive Order 12866

This rule has been determined to be not significant for purposes of Executive Order 12866; and, therefore has not been reviewed by the Office of Management and Budget (OMB).

Executive Order 12988

This rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. There are no administrative procedures that must be exhausted prior to any judicial challenge to the provisions of this rule.
Regulatory Flexibility Act and Paperwork Reduction Act

Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), AMS has considered the economic impact of this action on small entities and has determined that its implementation will not have a significant economic impact on a substantial number of small businesses.

The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions so that small businesses will not be disproportionately burdened. There are approximately 60 cotton merchant organizations of various sizes active in trading U.S. cotton. Cotton merchants voluntarily use the AMS cotton futures classification services under the Cotton Futures Act (Act) (7 U.S.C. 15b). Many of these cotton merchants are small businesses under the criteria established by the Small Business Administration (13 CFR § 121.201). Establishing the registration option for cotton futures classification will not significantly affect small businesses as defined in the RFA because:

(1) The established user fee for cotton futures classification services is $3.50 per bale (7 CFR § 27.80). Users choosing the registration option would incur no additional charges;

(2) The established cotton futures classification fee represents a very small portion of the cost per-unit currently borne by those entities utilizing the service;

(3) The average price paid to producers for cotton from the 2012 crop was 73.22 cents per pound, making a 500 pound bale of cotton worth an average of $366.10. The current user fee


### 68984 Federal Register / Vol. 78, No. 222 / Monday, November 18, 2013 / Rules and Regulations

for futures classification services, $3.50 per bale, is less than one percent of the average value of a bale of cotton;

(4) The fee for this service will not affect competition in the marketplace;

(5) The futures classification option is expected to streamline marketing and create logistical efficiencies for all entities utilizing this option; and

(6) The use of futures classification services is voluntary. For fiscal year 2013, there were 913,179 cotton futures samples (approximately 5.4 percent of the 16,942,409 Smith-Doxey classifications) voluntarily submitted for the futures classification service.

In compliance with OMB regulations (5 CFR part 1320), which implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501), the information collection requirements associated with this rule have been previously approved by OMB and were assigned OMB control number 0581–0008, Cotton Classing, Testing, And Standards.
Background

The Act requires USDA-verified quality measurements for each bale to be included in futures contracts for the purpose of verifying that each bale meets the minimum quality requirements for cotton futures trading. Furthermore, the Act authorizes the charging of user fees required to recover the cost associated with providing futures quality verification services.

USDA was first directed to provide cotton classification services toproducers of cotton under the SmithDoxey Act of April 13, 1937 (Pub. L. 75– 28). Therefore, the original classification of a cotton bale’s sample and quality data which results from this classification is commonly referred to asthe Smith-Doxey classification or SmithDoxey data. While cotton classification is not mandatory, practically every cotton bale grown in the United States today is classed by AMS under the authority of the Cotton Statistics and Estimates Act (7 U.S.C. 471–476) and the U.S. Cotton Standards Act (7 U.S.C. 51–65) and under regulations found in 7 CFR part 28—Cotton Classing, Testing, and Standards. The U.S. cotton industryuses Smith-Doxey data to assign qualityadjusted market values to U.S. cotton and market U.S. cotton bothdomestically and internationally. SmithDoxey data is commonly used by the cotton merchant community to indicate which bales may be tenderable against a cotton futures contract.

Conventional procedures employed for verifying quality measurements for bales to be included in futures contracts consists of two futures classifications: 1) initial futures classification and 2) final futures classification. AMS, Cotton and Tobacco Program revised these procedures to incorporate Smith-Doxey data into the cotton futures classification process in March 2012 (77 FR 5379). When verified by a futures classification, Smith-Doxey data serves as an initial futures classification with the verifying futures classification serving as a final futures classification. The use of Smith-Doxey data significantly reduced the number of futures classifications required for many of the bales that were submitted for certification.

The successful incorporation of Smith-Doxey data into the futures classification procedures prompted the U.S. cotton industry and ICE to request that the AMS, Cotton and Tobacco Program use Smith-Doxey data to certify that bales submitted for quality verification meet more restrictive quality requirements and age parameters set by ICE for use in a cotton futures contract. The U.S. cotton industry and ICE refer to this optional procedure as the ‘‘registration option’’.

The established user fee for cotton futures classification services is $3.50 per bale (7 CFR 27.80). Customers choosing this cotton futures classification option will incur this charge. In the event that AMS determines that a bale submitted under this option fails to meet quality or age parameters set by the exchange inspection agency, the owner of the bale will be notified of the bale’s failure.

AMS, Cotton and Tobacco Program is amending regulations in 7 CFR part 27to allow for the use of original SmithDoxey data to certify that bales submitted for quality verification meet quality and age parameters set by the applicable exchange inspection agency. Accordingly, the definition of ‘‘Classification’’ in § 27.2, paragraph (n) is amended to allow the registration option for the futures classification services. Also in § 27.2, the term ‘‘Smith-Doxey data’’ is defined in new paragraphs (p).
Summary of Comments

A proposed rule was published in the Federal Register on September 9, 2013, with a comment period of September 9, 2013 through October 9, 2013 (78 FR 54970). AMS received two comments: one from a national trade organization representing cotton merchant firms that handle over 80 percent of the U.S. cotton sold in domestic and foreign markets; and one from an American commodities exchange that operates regulated exchanges and clearing houses for energy, agricultural, credit, currency, emissions, and equity index products. Both comments expressed support for all provisions outlined in the proposed
rule and the future classification services provided by the AMS Cotton and Tobacco Program. Comments may
be viewed at www.regulations.gov.

The U.S. cotton industry and ICE requested that AMS, Cotton and Tobacco Program make this option
available in December 2013 to coincide with the implementation of ICE’s Cotton Resolution No. 2, which is scheduled to
commence with the March 2014 contract month. Accordingly, pursuant to 5 U.S.C. 553, it is found and determined that good cause exists for not postponing the effective date of this rule until 30 days after publication in
the Federal Register

. List of Subjects in 7 CFR Part 27

Commodity futures, Cotton.

For the reasons set forth in the preamble, 7 CFR part 27 is amended to
read as follows:

**PART 27—[AMENDED]**

■ 1. The authority citation for 7 CFR part 27 is revised to read as follows:

Authority: 7 U.S.C. 15b, 7 U.S.C. 473b, 7 U.S.C. 1622(g).

■ 2. In § 27.2, paragraph (n) is revised and new paragraph (p) is added to read
as follows:

**§ 27.2 Terms defined.**

* * * * *

(n) Classification. The classification of any cotton shall be determined by the quality of a sample in accordance with the Universal Cotton Standards (the
official cotton standards of the United States) for cotton property measurements of American Upland cotton. High Volume Instruments will determine all cotton property measurements except extraneous matter. Cotton classers authorized by the Cotton and Tobacco Program will determine the presence of extraneous matter. Original Smith-Doxey data may serve as
certification that bales submitted for quality verification meet quality and age parameters set by an applicable exchange inspection agency as a futures classification option.

* * * * *

(p) Smith-Doxey data. Data reflecting the original classification of a cotton bale provided to producers of cotton under the Smith-Doxey Act of April 13, 1937 (Pub. L. 75–28).


### 68985 Federal Register / Vol. 78, No. 222 / Monday, November 18, 2013 / Rules and Regulations

Dated: November 5, 2013.
Rex A. Barnes, Associate Administrator, Agricultural Marketing Service.

[FR Doc. 2013–27533 Filed 11–15–13; 8:45 am]

**BILLING CODE 3410–02–P**

**DEPARTMENT OF TRANSPORTATION**

**Federal Aviation Administration**

**14 CFR Part 25**

**[Docket No. FAA–2013–0958; Special Conditions No. 25–503–SC]** 

**Special Conditions: Boeing Model 777– 200, –300, and –300ER Series**  **Airplanes; Aircraft Electronic System Security Protection From Unauthorized** 
**Internal Access**

**AGENCY :**  Federal Aviation Administration (FAA), DOT.

**ACTION :**  Final special conditions.

**SUMMARY :**  These special conditions are issued for the Boeing Model 777–200, –300, and –300ER series airplanes. These airplanes, as modified by the Boeing Company, will have novel or unusual design features associated with the architecture and connectivity of the passenger service computer network systems to the airplane critical systems and data networks. This onboard network system will be composed of a network file server, a network extension device, and additional interfaces configured by customer option. 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 :**  Effective Date: The effective date of these special conditions is November
18, 2013.

**FOR FURTHER INFORMATION CONTACT :**  Varun Khanna, FAA, Airplane and Flight Crew Interface Branch, ANM– 111, Transport Airplane Directorate, Aircraft Certification Service, 1601 Lind Avenue SW., Renton, Washington 98057–3356; telephone 425–227–1298; facsimile 425–227–1149.

**SUPPLEMENTARY INFORMATION :**  Background

On August 21, 2012, The Boeing Company applied for a change to Type Certificate No. T00001SE Rev. 30 dated June 6, 2012 for installation of an onboard network system, associated line replaceable units (LRUs) and additional software functionality in the Boeing Model 777–200, –300, and –300ER Series Airplanes. The Boeing Model777–200 airplanes are long-range, widebody, twin-engine jet airplanes with a maximum capacity of 440 passengers. The Boeing Model 777–300 and 777– 300ER series airplanes have a maximum capacity of 550 passengers. The Model 777–200, –300, and –300ER series airplanes have fly-by-wire controls, software-configurable avionics, and fiber-optic avionics networks.

The proposed architecture is novel or unusual for commercial transport airplanes by enabling connection to previously isolated data networks connected to systems that perform functions required for the safe operation of the airplane. This proposed data network and design integration may result in security vulnerabilities from intentional or unintentional corruption of data and systems critical to the safety and maintenance of the airplane. The existing regulations and guidance material did not anticipate this type of system architecture or electronic access to aircraft systems. Furthermore, regulations and current system safety assessment policy and techniques do not address potential security vulnerabilities, which could be caused by unauthorized access to aircraft data buses and servers.
Type Certification Basis

Under Title 14, Code of Federal Regulations (14 CFR) 21.17, The Boeing Company must show that the Model 777–200, –300, and –300ER series airplanes meet the applicable provisions of 14 CFR part 25, as amended by Amendments 25–1 through 25–128.

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 Boeing Model 777–200, –300, and –300ER series airplanes 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, the proposed special conditions would also apply to the other model under § 21.101.

In addition to the applicable airworthiness regulations and proposed special conditions, the Boeing Model 777–200, –300, and –300ER series airplanes must comply with the fuel vent and exhaust emission requirements of 14 CFR part 34 and the noise certification requirements of 14 CFR part 36 and 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 § 21.17(a)(2).
Novel or Unusual Design Features

The Boeing Model 777–200, –300, –300ER series airplanes will incorporate the following novel or unusual design features: An onboard computer network system, and a network extension device. The network extension device will improve domain separation between the airplane information services domain and the aircraft control domain. The proposed architecture and network configuration may be used for, or interfaced with, a diverse set of functions, including:

1. Flight-safety related control and navigation systems,

2. Operator business and administrative support (operator information services),

3. Passenger information systems, and,

4. Access by systems internal to the airplane.

Discussion

The integrated network configurations in the Boeing Model 777–200, –300, and –300ER series airplanes may enable increased connectivity with external network sources and will have more interconnected networks and systems, such as passenger entertainment and information services than previous airplane models. This may enable the exploitation of network security vulnerabilities and increased risks potentially resulting in unsafe conditions for the airplanes and occupants. This potential exploitation of security vulnerabilities may result in intentional or unintentional destruction, disruption, degradation, or exploitation of data and systems critical to the safety and maintenance of the airplane. The existing regulations and guidance material did not anticipate these types of system architectures. Furthermore, 14 CFR regulations and current system safety assessment policy and techniques do not address potential security vulnerabilities which could be exploited by unauthorized access to airplane networks and servers. Therefore, these special conditions are being issued to ensure that the security (i.e., confidentiality, integrity, and availability) of airplane systems is not compromised by unauthorized wired or