Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations 7203 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. NM387; Special Conditions No. 

25–366–SC] 

Special Conditions: Boeing Model 767–

200, –300, and –300F Series Airplanes; 

Satellite Communication System With 

Lithium Ion Battery Installation 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for Boeing Model 767–200, –300, 

and –300F series airplanes. These 

airplanes as modified by ABX Air Inc. 

will have a novel or unusual design 

feature associated with a satellite 

communication system which uses 

lithium ion battery technology. 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: The effective date of these 

special conditions is January 25, 2008. 

We must receive your comments by 

March 10, 2008. 

ADDRESSES: You must mail two copies 

of your comments to: Federal Aviation 

Administration, Transport Airplane 

Directorate, Attention: Rules Docket 

(ANM–113), Docket No. NM387, 1601 

Lind Avenue, SW., Renton, Washington 

98057–3356. You may deliver two 

copies to the Transport Airplane 

Directorate at the above address. You 

must mark your comments: Docket No. 

NM387. You can inspect comments in 

the Rules Docket weekdays, except 

federal holidays, between 7:30 a.m. and 

7 p.m. 

FOR FURTHER INFORMATION CONTACT: 

Nazih Khaouly, FAA, Airplane and 

Flight Crew Interface, ANM–111, 

Transport Airplane Directorate, Aircraft 

Certification Service, 1601 Lind 

Avenue, SW., Renton, Washington 

98057–3356; telephone (425) 227–2432; 

facsimile (425) 227–1149. 

SUPPLEMENTARY INFORMATION: The FAA 

has determined that notice and 

opportunity for prior public comment 

on these special conditions are 

unnecessary because the substance of 

these special conditions has previously 

been subject to the public comment 

process. While we received comments 

on the previously-proposed special 

conditions and carefully reviewed them, 

we determined that no changes were 

needed to the special conditions, as 

proposed. In addition, notice and 

opportunity for prior public comment 

are impracticable because these 

procedures would significantly delay 

issuance of the design approval and 

thus delivery of the affected aircraft. 

Therefore, the FAA finds that it is 

unnecessary to provide an additional 

opportunity to comment and that good 

cause exists for making these special 

conditions effective upon issuance. 

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 ask that you send 

us two copies of written comments. 

We will file in the docket all 

comments we receive as well as a report 

summarizing each substantive public 

contact with FAA personnel about these 

special conditions. You can inspect the 

docket before and after the comment 

closing date. If you wish to review the 

docket in person, go to the address in 

the ADDRESSES section of this preamble 

between 7:30 a.m. and 4 p.m., Monday 

through Friday, except federal holidays. 

We will consider all comments we 

receive by the closing date for 

comments. We will consider comments 

filed late, if it is possible to do so 

without incurring expense or delay. We 

may change these special conditions 

based on the comments we receive. 

If you want us to let you know we 

received your comments on these 

special conditions, send us a preaddressed, stamped postcard on which 

the docket number appears. We will 

stamp the date on the postcard and mail 

it back to you. 

Background 

On July 5, 2007, ABX Air, Inc. of 

Wilmington, Ohio applied for a 

supplemental type certificate to install a 

satellite communication system on 

Boeing Model 767–200, –300, and 

–300F series airplanes. The satellite 

communication system contains the 

following equipment: 

• Wingspeed Corporation Aircraft 

Communication Unit, 

• Sensor Systems GPS/Iridium 

Antennae, 

• Satellite Phone Handset, 

• DAC International Class II GEN–X 

Electronic Flight Bag System, and 

• RITEC Airborne Printer 

At present, there is limited experience 

with use of rechargeable lithium ion 

batteries in applications involving 

commercial aviation. However, other 

users of this technology, ranging from 

wireless telephone manufacturers to the 

electric vehicle industry, have noted 

safety problems with lithium ion 

batteries. These problems include 

overcharging, over-discharging, and 

flammability of cell components. 

1. Overcharging 

In general, lithium ion batteries are 

significantly more susceptible to 

internal failures that can result in selfsustaining increases in temperature and 

pressure (i.e., thermal runaway) than 

their nickel-cadmium or lead-acid 

counterparts. This is especially true for 

overcharging that causes heating and 

destabilization of the components of the 

cell, leading to the formation (by 

plating) of highly unstable metallic 

lithium. The metallic lithium can ignite, 

resulting in a self-sustaining fire or 

explosion. Finally, the severity of 

thermal runaway due to overcharging 

increases with increasing battery 

capacity due to the higher amount of 

electrolyte in large batteries. 

2. Over-Discharging 

Discharge of some types of lithium 

ion batteries beyond a certain voltage 

(typically 2.4 volts) can cause corrosion 

of the electrodes of the cell, resulting in 

loss of battery capacity that cannot be 

reversed by recharging. This loss of 

capacity may not be detected by the 

simple voltage measurements 

commonly available to flight crews as a 

means of checking battery status—a 

problem shared with nickel-cadmium 

batteries. 

3. Flammability of Cell Components 

Unlike nickel-cadmium and lead-acid 

batteries, some types of lithium ion 

batteries use liquid electrolytes that are 

flammable. The electrolyte can serve as 

a source of fuel for an external fire, if 

there is a breach of the battery 

container. 

These problems experienced by users 

of lithium ion batteries raise concern 

about the use of these batteries in 

commercial aviation. Accordingly, the 

proposed use of lithium ion batteries in 

a satellite communication system on 

Boeing Model 767–200, –300, and 

–300F series airplanes has prompted the 

FAA to review the adequacy of existing 

regulations in 14 CFR 25. Our review 

indicates that the existing regulations do 

not adequately address several failure, 

operational, and maintenance 

characteristics of lithium ion batteries 


rfrederick on PROD1PC67 with RULES
7204 Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations 

that could affect the safety and 

reliability of lithium ion battery 

installations. 

The intent of these special conditions 

is to establish appropriate airworthiness 

standards for lithium ion batteries in 

Boeing Model 767–200, –300, and 

–300F series airplanes modified by ABX 

Air Inc. and to ensure, as required by 14 

CFR 25.601, that these battery 

installations are not hazardous or 

unreliable. Accordingly, these special 

conditions include the following 

requirements: 

• Those provisions of 14 CFR 25.1353 

which are applicable to lithium ion 

batteries. 

• The flammable fluid fire protection 

provisions of 14 CFR 25.863. 

In the past, this regulation was not 

applied to batteries of transport category 

airplanes, since the electrolytes used in 

lead-acid and nickel-cadmium batteries 

are not flammable. 

• New requirements to address the 

hazards of overcharging and overdischarging that are unique to lithium 

batteries. 

• New Instructions for Continuous 

Airworthiness that include maintenance 

requirements to ensure that batteries 

used as spares are maintained in an 

appropriate state of charge. 

Type Certification Basis 

Under the provisions of 14 CFR 

21.101, ABX Air, Inc. must show that 

the Boeing Model 767–200, –300 and 

–300F series airplanes, as changed, 

continue to meet the applicable 

provisions of the regulations 

incorporated by reference in Type 

Certificate No. A1NM or the applicable 

regulations in effect on the date of 

application for the change. The 

regulations incorporated by reference in 

the type certificate are commonly 

referred to as the ‘‘original type 

certification basis.’’

The certification basis for Boeing 

Model 767–200, –300, and –300F series 

airplanes includes applicable sections of 

14 CFR part 25, effective July 30, 1982, 

as amended by Amendments 25–1 

through 25–45, except for portions of 

Amendment 25.38. In addition, the 

certification basis includes certain 

special conditions, exemptions, 

equivalent levels of safety, or later 

amended sections of the applicable part 

25 that are not relevant to these special 

conditions. 

If the Administrator finds that the 

applicable airworthiness regulations 

(i.e., part 25, as amended) do not 

contain adequate or appropriate safety 

standards for Boeing Model 767–200, 

–300, and –300F series airplanes 

because of a novel or unusual design 

feature, special conditions are 

prescribed under the provisions of 

§ 21.16. 

In addition to the applicable 

airworthiness regulations and special 

conditions, the Boeing Model 767–200, 

–300, and –300F 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. 

The FAA issues special conditions, as 

defined in 14 CFR 11.19, under 14 CFR 

11.38, and they become part of the type 

certification basis in accordance with 

§ 21.101. 

Special conditions are initially 

applicable to the models for which they 

are issued. Should ABX Air, Inc. apply 

for a supplemental type certificate to 

modify any other model included on 

Type Certificate No. A1NM to 

incorporate the same or similar novel or 

unusual design feature, these special 

conditions would also apply to the other 

model. 

Novel or Unusual Design Features 

The Boeing Model 767–200, –300, and 

300F series airplanes—as modified by 

ABX Air Inc. to include a satellite 

communication system which uses 

lithium ion battery technology—will 

incorporate a novel or unusual design 

feature. Because of rapid improvements 

in airplane technology, 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. 

The satellite communication system 

will include a lithium ion battery 

installation. Large, high capacity, 

rechargeable lithium ion batteries are a 

novel or unusual design feature in 

transport category airplanes. This type 

of battery has certain failure, 

operational, and maintenance 

characteristics that differ significantly 

from those of the nickel-cadmium and 

lead-acid rechargeable batteries 

currently approved for installation on 

large transport category airplanes. The 

FAA issues these special conditions to 

require that (1) all characteristics of the 

lithium ion battery and its installation 

that could affect safe operation of the 

satellite communication system are 

addressed, and (2) appropriate 

maintenance requirements are 

established to ensure that electrical 

power is available from the batteries 

when it is needed. 

Applicability 

As discussed above, these special 

conditions are applicable to the Boeing 

Model 767–200, –300, and –300F series 

airplanes as modified by ABX Air Inc. 

Should ABX Air, Inc. apply at a later 

date for a supplemental type certificate 

to modify any other model included on 

Type Certificate No. A1NM to 

incorporate the same novel or unusual 

design feature, these special conditions 

would apply to that model as well. 

Conclusion 

This action affects only certain novel 

or unusual design features of the Boeing 

Model 767–200, –300, and 300F series 

airplanes as modified by ABX Air Inc. 

It is not a rule of general applicability 

and affects only the applicant which 

applied to the FAA for approval of these 

features on the airplane. 

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. For this reason and 

because a delay would significantly 

affect the certification of the airplane 

which is imminent, the FAA has 

determined that prior public notice and 

comment are unnecessary and 

impracticable and that good cause exists 

for adopting these special conditions 

upon issuance. 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 comments 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 

The FAA proposes the following 

special conditions as part of the type 

certification basis for Boeing Model 

767–200, –300, and 300F series 

airplanes modified by ABX Air Inc. in 

lieu of the requirements of 14 CFR 

25.1353(c)(1) through (c)(4), 

Amendment 25–113. 

Lithium ion batteries and battery 

installations on Boeing 767–200, –300, 

and –300F series airplanes must be 

designed and installed as follows: 

(1) Safe cell temperatures and 

pressures must be maintained during 


rfrederick on PROD1PC67 with RULES
Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations 7205 

1 17 CFR 200.30–1. 

any foreseeable charging or discharging 

condition and during any failure of the 

charging or battery monitoring system 

not shown to be extremely remote. The 

lithium ion battery installation must 

preclude explosion in the event of those 

failures. 

(2) Design of the lithium ion batteries 

must preclude the occurrence of selfsustaining, uncontrolled increases in 

temperature or pressure. 

(3) No explosive or toxic gases 

emitted by any lithium ion battery in 

normal operation or as the result of any 

failure of the battery charging system, 

monitoring system, or battery 

installation which is not shown to be 

extremely remote may accumulate in 

hazardous quantities within the 

airplane. 

(4) Installations of lithium ion 

batteries must meet the requirements of 

14 CFR 25.863(a) through (d). 

(5) No corrosive fluids or gases that 

may escape from any lithium ion battery 

may damage surrounding structure or 

any adjacent systems, equipment, or 

electrical wiring of the airplane in such 

a way as to cause a major or more severe 

failure condition, in accordance with 14 

CFR 25.1309 (b) and applicable 

regulatory guidance. 

(6) Each lithium ion battery 

installation must have provisions to 

prevent any hazardous effect on 

structure or essential systems caused by 

the maximum amount of heat the 

battery can generate during a short 

circuit of the battery or of its individual 

cells. 

(7) Lithium ion battery installations 

must have a system to control the 

charging rate of the battery 

automatically, so as to prevent battery 

overheating or overcharging, and, 

(i) A battery temperature sensing and 

over-temperature warning system with a 

means for automatically disconnecting 

the battery from its charging source in 

the event of an over-temperature 

condition, or 

(ii) A battery failure sensing and 

warning system with a means for 

automatically disconnecting the battery 

from its charging source in the event of 

battery failure. 

(8) Any lithium ion battery 

installation whose function is required 

for safe operation of the airplane must 

incorporate a monitoring and warning 

feature that will provide an indication 

to the appropriate flight crewmembers 

whenever the state-of-charge of the 

batteries has fallen below levels 

considered acceptable for dispatch of 

the airplane. 

(9) The Instructions for Continued 

Airworthiness required by 14 CFR 

25.1529 must contain maintenance 

requirements to assure that the lithium 

ion battery is sufficiently charged at 

appropriate intervals specified by the 

battery manufacturer to ensure that 

batteries whose function is required for 

safe operation of the airplane will not 

degrade below specified ampere-hour 

levels sufficient to power the electronic 

flight bag (EFB) applications that are 

required for continued safe flight and 

landing. The Instructions for Continued 

Airworthiness must also contain 

procedures for the maintenance of 

lithium ion batteries in spares storage to 

prevent the replacement of batteries 

whose function is required for safe 

operation of the airplane with batteries 

that have experienced degraded charge 

retention ability or other damage due to 

prolonged storage at a low state of 

charge. Precautions should be included 

in the Instructions for Continued 

Airworthiness maintenance instructions 

to prevent mishandling of the lithium 

ion battery which could result in shortcircuit or other unintentional damage 

that could result in personal injury or 

property damage. 

Note 1: The term, ‘‘sufficiently charged’’

means the charge that is applied to 

rechargeable lithium ion batteries, which 

diminishes during the life of batteries with 

respect to the retentive capacity of the 

batteries to deliver available power—where 

capacity is the total quantity of electricity of 

a cell or battery, expressed in ampere-hours. 

Battery life is influenced by its internal 

chemical reaction and by other factors, such 

as temperature, shock, the number of 

recharges, etc. 

Note 2: These special conditions are not 

intended to replace 14 CFR 25.1353(c), 

Amendment 25–113 in the certification basis 

of the ABX, Air Inc supplemental type 

certificate. These special conditions apply 

only to lithium ion batteries and their 

installations. The requirements of 14 CFR 

25.1353(c), Amendment 25–113 remain in 

effect for batteries and battery installations 

on the ABX Air supplemental type certificate 

that do not use lithium ion batteries. 

Compliance with the requirements of 

this Special Condition must be shown 

by test or analysis, with the concurrence 

of the Chicago Aircraft Certification 

Office. 

Issued in Renton, Washington, on January 

25, 2008. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E8–2224 Filed 2–6–08; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 200 

[Release No. 34–57262] 

Delegation of Authority to the Director 

of the Division of Corporation Finance 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Securities and Exchange 

Commission is amending its Rules of 

Organization and Program Management 

to delegate its authority to the Director 

of the Division of Corporation Finance 

to grant or deny exemptions pursuant to 

Section 36 of the Securities Exchange 

Act of 1934 from the requirement for 

registrants in connection with an annual 

meeting of security holders to furnish an 

annual report to security holders that 

contains audited financial statements as 

required by rules under the Exchange 

Act under certain limited 

circumstances. The delegation of 

authority is intended to conserve 

Commission resources by permitting the 

staff to review and act on exemptive 

applications under Section 36 when 

appropriate. 

DATES: Effective Date: February 7, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Celeste M. Murphy, Special Counsel, at 

(202) 551–3440, Office of Mergers and 

Acquisitions, Division of Corporation 

Finance, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–3628. 

SUPPLEMENTARY INFORMATION: The 

Commission today announces an 

amendment to its Organization and 

Program Management Rules governing 

Delegations of Authority to the Director 

of the Division of Corporation Finance.1

The amendment adds to Rule 30–1 a 

new paragraph (e)(18) authorizing the 

Director to grant or deny exemptions 

from the requirements of Rule 14a–3(b) 

and Rule 14c–3(a) under the Exchange 

Act, pursuant to Section 36 of the 

Exchange Act, for audited financial 

statements to be included in the annual 

report to be furnished to security 

holders in connection with an annual 

meeting of security holders. 

A number of companies have faced 

the dilemma of being required to hold 

a meeting of security holders when they 

are unable to deliver current audited 

financial statements. These companies 

may be compelled to hold meetings of 

their security holders pursuant to the 

provisions of certain state corporation 


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