[Federal Register Volume 76, Number 153 (Tuesday, August 9, 2011)]
[Notices]
[Page 48846]
[FR Doc No: 2011-20060]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 12829-002]

 Free Flow Power Corporation; Notice of Preliminary Permit
Application Accepted for Filing and Soliciting Comments, Motions To
Intervene, and Competing Applications

    On March 1, 2011, Free Flow Power Corporation filed an application,
pursuant to section 4(f) of the Federal Power Act, proposing to study
the feasibility of hydropower on the Mississippi River, near New
Orleans, in Jefferson and Orleans Parishes, Louisiana. The sole purpose
of a preliminary permit, if issued, is to grant the permit holder
priority to file a license application during the permit term. A
preliminary permit does not authorize the permit holder to perform any
land-disturbing activities or otherwise enter upon lands or waters
owned by others without the owners' express permission.
    The proposed Greenville Bend hydrokinetic project would consist of
the following: (1) Up to 1,450 SmarTurbine generating units installed
in arrays on the bottom of the river; (2) the total capacity of the
installation would be up to 58,000 kilowatts; (3) flexible cables would
convey each arrays power to a metering station; and (4) a transmission
line would interconnect with the power grid. The proposed project would
have an average annual generation of 131,905,050 kilowatt-hours (kWh),
which would be sold to a local utility.
    Applicant Contact: Ramya Swaminathan, Free Flow Power Corporation,
239 Causeway Street, Boston, MA 02114; phone<PHONE_NUMBER>.
    FERC Contact: Michael Spencer,<PHONE_NUMBER>.
    Deadline for filing comments, motions to intervene, competing
applications (without notices of intent), or notices of intent to file
competing applications: 60 days from the issuance of this notice.
Competing applications and notices of intent must meet the requirements
of 18 CFR 4.36. Comments, motions to intervene, notices of intent, and
competing applications may be filed electronically via the Internet.
See 18 CFR 385.2001(a)(1)(iii) and the instructions on the Commission's
Web site http://www.ferc.gov/docs-filing/efiling.asp. Commenters can
submit brief comments up to 6,000 characters, without prior
registration, using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information
at the end of your comments. For assistance, please contact FERC Online
Support at<EMAIL_ADDRESS>call toll-free at (866) 208-
3676; or, for TTY, contact<PHONE_NUMBER>. Although the Commission
strongly encourages electronic filing, documents may also be paper-
filed. To paper-file, mail an original and seven copies to: Kimberly D.
Bose, Secretary, Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
    More information about this project, including a copy of the
application, can be viewed or printed on the ``eLibrary'' link of the
Commission's Web site at http://www.ferc.gov/docs-filing/elibrary.asp.
Enter the docket number (P-12829-002) in the docket number field to
access the document. For assistance, contact FERC Online Support.

    Dated: August 2, 2011.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-20060 Filed 8-8-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: August 31, 2007 (Volume 72, Number 169)]
[Notice]
[Page 50364-50365]
[DOCID:fr31au07-97]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 12814-000, Project No. 12851-000]

Free Flow Power Corporation, FFP Project 7, LLC; Notice of
Competing Applications Accepted for Filing and Soliciting Comments,
Motions To Intervene, and Protests

August 23, 2007.
    Take notice that the following hydroelectric applications have been
filed with the Commission and are available for public inspection:
    a. Type of Applications: Preliminary Permit (Competing).
    b. Applicants, Project Numbers, and Dates Filed:
    Free Flow Power Corporation filed the application for Project No.
12814-000 on July 23, 2007.
    FFP Project 7, LLC filed the application for Project No.12851-000
on July 25, 2007.
    c. Name of the project is Gouldsboro Bend Project. The project
would be located on the Mississippi River in Orleans and Jefferson
Parish, Louisiana. The project uses no dam or impoundment.
    d. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791a--825r.
    e. Applicants Contacts: For the Free Flow Power Corporation: Mr.
Dan Irvin, Free Flow Power Corporation, 69 Bridge Street, Manchester,
MA 01944, phone<PHONE_NUMBER>. FFP Project 7, LLC: Mr. Dan Irvin, FFP
Project 7, LLC, 69 Bridge Street, Manchester, MA 01944, phone (978)
232-3536
    f. FERC Contact: Robert Bell,<PHONE_NUMBER>.
    g. Deadline for filing comments, protests, and motions to
intervene: 60 days from the issuance date of this notice.
    All documents (original and eight copies) should be filed with:
Secretary, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426. Comments, protests, and interventions may be
filed electronically via the Internet in lieu of paper; see 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings. Please include the project number (P-12814-000 or
P-12851-000) on any comments or motions filed.
    The Commission's Rules of Practice and Procedure require all
intervenors filing documents with the Commission to serve a copy of
that document on

each person in the official service list for the project. Further, if
an intervenor files comments or documents with the Commission relating
to the merits of an issue that may affect the responsibilities of a
particular resource agency, they must also serve a copy of the document
on that resource agency.
    h. Description of Projects: The project proposed by Free Flow Power
Corporation would consist of: (1) 1,000 proposed 20 kilowatt Free Flow
generating units having a total installed capacity of 20 megawatts, (2)
a proposed transmission line, and (3) appurtenant facilities. The Free
Flow Power Corporation, project would have an average annual generation
of 87.6 gigawatt-hours and be sold to a local utility.
    The project proposed by FFP Project 7, LLC would consist of: (1)
1,000 proposed 20 kilowatt Free Flow generating units having a total
installed capacity of 20 megawatts, (2) a proposed transmission line,
and (3) appurtenant facilities. The FFP Project 7, LLC, project would
have an average annual generation of 87.6 gigawatt-hours and be sold to
a local utility.
    i. The filings are available for review at the Commission in the
Public Reference Room or may be viewed on the Commission's Web site at
http://www.ferc.gov using the ``eLibrary'' link. Enter the docket
number excluding the last three digits in the docket number field to
access the document. For assistance, call toll-free 1-866-208-3676 or
e-mail<EMAIL_ADDRESS>For TTY, call<PHONE_NUMBER>. A copy
is also available for inspection and reproduction at the address in
item e above.
    j. Competing Preliminary Permit--Anyone desiring to file a
competing application for preliminary permit for a proposed project
must submit the competing application itself, or a notice of intent to
file such an application, to the Commission on or before the specified
comment date for the particular application (see 18 CFR 4.36).
Submission of a timely notice of intent allows an interested person to
file the competing preliminary permit application no later than 30 days
after the specified comment date for the particular application. A
competing preliminary permit application must conform with 18 CFR
4.30(b) and 4.36.
    k. Competing Development Application--Any qualified development
applicant desiring to file a competing development application must
submit to the Commission, on or before a specified comment date for the
particular application, either a competing development application or a
notice of intent to file such an application. Submission of a timely
notice of intent to file a development application allows an interested
person to file the competing application no later than 120 days after
the specified comment date for the particular application. A competing
license application must conform with 18 CFR 4.30(b) and 4.36.
    l. Notice of Intent--A notice of intent must specify the exact
name, business address, and telephone number of the prospective
applicant, and must include an unequivocal statement of intent to
submit, if such an application may be filed, either a preliminary
permit application or a development application (specify which type of
application). A notice of intent must be served on the applicant(s)
named in this public notice.
    m. Proposed Scope of Studies Under Permit--A preliminary permit, if
issued, does not authorize construction. The term of the proposed
preliminary permit would be 36 months. The work proposed under the
preliminary permit would include economic analysis, preparation of
preliminary engineering plans, and a study of environmental impacts.
Based on the results of these studies, the Applicant would decide
whether to proceed with the preparation of a development application to
construct and operate the project.
    n. Comments, Protests, or Motions to Intervene--Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210,
385.211, 385.214. In determining the appropriate action to take, the
Commission will consider all protests or other comments filed, but only
those who file a motion to intervene in accordance with the
Commission's Rules may become a party to the proceeding. Any comments,
protests, or motions to intervene must be received on or before the
specified comment date for the particular application.
    o. Filing and Service of Responsive Documents--Any filings must
bear in all capital letters the title ``COMMENTS'', ``NOTICE OF INTENT
TO FILE COMPETING APPLICATION'', ``COMPETING APPLICATION'',
``PROTEST'', and ``MOTION TO INTERVENE'', as applicable, and the
Project Number of the particular application to which the filing
refers. Any of the above-named documents must be filed by providing the
original and the number of copies provided by the Commission's
regulations to: The Secretary, Federal Energy Regulatory Commission,
888 First Street, NE., Washington, DC 20426. An additional copy must be
sent to Director, Division of Hydropower Administration and Compliance,
Federal Energy Regulatory Commission, at the above-mentioned address. A
copy of any notice of intent, competing application or motion to
intervene must also be served upon each representative of the Applicant
specified in the particular application.
    p. Agency Comments--Federal, state, and local agencies are invited
to file comments on the described application. A copy of the
application may be obtained by agencies directly from the Applicant. If
an agency does not file comments within the time specified for filing
comments, it will be presumed to have no comments. One copy of an
agency's comments must also be sent to the Applicant's representatives.

Kimberly D. Bose,
Secretary.
[FR Doc. E7-17254 Filed 8-30-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register: November 9, 2006 (Volume 71, Number 217)]
[Notices]
[Page 65794-65795]
[DOCID:fr09no06-69]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP07-52-000]

North Baja Pipeline, LLC; Notice of Proposed Changes in FERC Gas
Tariff

November 3, 2006.
    Take notice that on October 31, 2006, North Baja Pipeline, LLC
(NBP) tendered for filing as part of its FERC Gas Tariff, Original
Volume No. 1, First Revised Sheet No. 199, to become effective December
1, 2006.
    NBP states that First Revised Sheet No. 199 is being submitted to
incorporate an additional type of permissible discount.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed in accordance with the provisions of
Section 154.210 of the Commission's regulations (18 CFR 154.210).
Anyone filing an intervention or protest must serve a copy of that
document on the Applicant. Anyone filing an intervention or protest on
or before the intervention or protest date need not serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call

(866) 208-3676 (toll free). For TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-19003 Filed 11-8-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62939-62941]
[FR Doc No: 2018-26403]

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SECURITIES AND EXCHANGE COMMISSION

[Securities Exchange Act of 1934; Release No. 34-84676/November 29,
2018]

In the Matter of the NYSE Arca, Inc.; for an Order Granting the
Approval of Proposed Rule Change To List and Trade Shares of the
ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily
4X US Market Futures Short Fund Under Commentary .02 to NYSE Arca
Equities Rule 8.200 (SR-NYSEArca-2016-120); Request for Additional
Comment

    On October 17, 2016, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities

Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares of the ForceShares Daily
4X US Market Futures Long Fund and ForceShares Daily 4X US Market
Futures Short Fund (``ForceShares ETPs'') under Commentary .02 to NYSE
Arca Equities Rule 8.200. On November 4, 2016, the proposal was
published for comment in the Federal Register.\3\ On December 14, 2016,
the Division of Trading and Markets, for the Commission pursuant to
delegated authority, extended the time period for Commission action on
the proposed rule change.\4\ On February 1, 2017, the Division of
Trading and Markets, for the Commission pursuant to delegated
authority, instituted proceedings to determine whether to approve or
disapprove the proposed rule change.\5\ On April 20, 2017, NYSE Arca
submitted Amendment No. 3 to the proposed rule change, which replaced
and superseded the proposed rule change as modified by previous
amendments.\6\ No comments on the proposed rule change were received.
On May 2, 2017, the Division of Trading and Markets, for the Commission
pursuant to delegated authority,\7\ approved the proposed rule change,
as modified by Amendment No. 3 (``May 2, 2017 Order'').\8\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 79201 (October 31,
2016), 81 FR 76977 (November 4, 2016) (SR-NYSEArca-2016-120).
    \4\ See Securities Exchange Act Release No. 79550 (December 14,
2016), 81 FR 92892 (December 20, 2016).
    \5\ See Securities Exchange Act Release No. 79914 (February 1,
2017), 82 FR 9625 (February 7, 2017).
    \6\ Amendment No. 3 replaced and superseded the proposed rule
change as modified by Amendment No. 2. Amendment No. 2 had
previously replaced and superseded the proposed rule change as
modified by Amendment No. 1. Amendment No. 1 replaced and superseded
the original filing in its entirety.
    \7\ 17 CFR 200.30-3(a)(12).
    \8\ See Securities Exchange Act Release No. 80579 (May 2, 2017),
82 FR 21443 (May 8, 2017).
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    On May 12, 2017, the Secretary of the Commission notified the
Exchange that pursuant to Rule 431 of the Commission's Rules of
Practice,\9\ the Commission would review the delegated action and that
the May 2, 2017 Order was stayed until the Commission ordered
otherwise.\10\ On May 25, 2017, the Commission issued an order
scheduling filing of statements on review (``May 25, 2017 Order''), in
which the Commission ordered that any party or other person may file
any additional statement by June 15, 2017. The Commission further
ordered that the May 2, 2017 Order shall remain stayed pending further
order of the Commission. The Commission received six comment letters in
response to the May 25, 2017 Order that support approval of the
proposed rule change.\11\
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    \9\ 17 CFR 201.431.
    \10\ See letter to Elizabeth King, General Counsel and Corporate
Secretary, New York Stock Exchange, from Brent J. Fields, Secretary,
Commission, dated May 12, 2017, available at https://www.sec.gov/rules/sro/nysearca/2017/34-80770-letter-from-secretary.pdf.
    \11\ See letters to Brent J. Fields, Secretary, Commission, from
Boris Ilyevsky, dated June 5, 2017; Kris Wallace, Member,
ForceShares LLC, dated June 13, 2017; Douglas M. Yones, Head of
Exchange Traded Products, New York Stock Exchange, dated June 13,
2017; Jonathan Yao, CEO, SogoTrade, Inc., dated June 14, 2017; and
Kris Wallace, Member, ForceShares LLC, dated July 24, 2017
(``ForceShares Letter''); and letter to Commission, from James J.
Angel, Associate Professor of Finance, Georgetown University, dated
July 10, 2017.
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    In response to the May 25, 2017 Order, one commenter cited a
working paper from staff of the Federal Reserve Board regarding the
impact of leveraged and inverse exchange-traded products (``ETPs'') on
the underlying market, and quoted the following statements from the
paper: (a) ``capital flows substantially reduce the need for ETFs to
rebalance when returns are large in magnitude and, therefore, mitigate
the potential for these products to amplify volatility. We also show
theoretically that flows can completely eliminate ETF rebalancing in
the limit'' and (b) ``[l]everaged and inverse ETFs have received heavy
criticism based on the belief that they exacerbate volatility in
financial markets. We show that concerns about these types of products
are likely exaggerated. Empirically, we find that capital flows
considerably reduce ETF rebalancing demand and, therefore, mitigate the
potential for ETFs to amplify volatility. Our analysis has relevant and
timely policy implications, as regulators are reportedly considering
changes to how ETFs are regulated.'' \12\
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    \12\ See ForceShares Letter at 5 (quoting Ivan T. Ivanov and
Stephen L. Lenkey, Are Concerns About Leveraged ETFs Overblown?
(Finance and Economics Discussion Series, Divisions of Research &
Statistics and Monetary Affairs, Federal Reserve Board, Washington,
DC, Working Paper 2014-106) (``Ivanov and Lenkey Paper'')).
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    The Commission believes that questions and concerns remain
regarding the potential systemic impact of the ForceShares ETPs. In
particular, the amount of rebalancing activity for a leveraged or
inverse ETP increases significantly as the ETP's leverage ratio and net
assets increase. Moreover, the rebalancing activities of both leveraged
and inverse ETPs are in the same direction as the movement in the
reference asset (i.e., they sell when the market is going down and buy
when the market is going up), which could potentially further
exacerbate market movements, particularly during periods of high market
volatility. Because the ForceShares ETPs would have 4X and -4X
leverage, they would have greater rebalancing activities than existing
ETPs that have lower leverage ratios per dollar of net assets under
management. In particular, there are questions concerning whether
rebalancing activities of the ForceShares ETPs could potentially result
in significant additional market volatility as compared to existing
ETPs, and interfere with fair and orderly markets. This raises a
potential concern that the listing and trading of shares of the
ForceShares ETPs may not be consistent with Section 6(b)(5) of the Act,
which requires, among other things, that the rules of a national
securities exchange be designed to protect investors and the public
interest.
    The Commission notes that another working paper from staff of the
Federal Reserve Board suggests that the rebalancing activities of
leveraged and inverse ETPs increase volatility in the underlying
securities.\13\ In particular, that working paper suggests that the
rebalancing activities of leveraged and inverse ETPs in response to a
large market move, especially in periods of high volatility, could pose
market risks.
---------------------------------------------------------------------------

    \13\ See Tugkan Tuzun, Are Leveraged and Inverse ETFs the New
Portfolio Insurers? (Board of Governors of the Federal Reserve
System, Working Paper May 28, 2014) (``Tuzun Paper'').
---------------------------------------------------------------------------

    The Commission invites additional written views of interested
persons concerning whether the proposed rule change is consistent with
Section 6(b)(5) or any other provision of the Act, or the rules and
regulations thereunder. In particular, the Commission requests that
interested persons provide additional written submissions of their
views, data, and arguments with respect to the market impact issue
identified above (including the market impact issue discussed in the
Ivanov and Lenkey Paper and the Tuzun Paper), as well as any other
comments they wish to submit regarding the proposed rule change. In
particular, the Commission seeks comment, including, where relevant,
any specific data, statistics, or studies, on the following:
    1. Would the rebalancing activities of the ForceShares ETPs impact
daily volatility of the portfolio holdings, the underlying index, or
the underlying names comprising the index (together ``underlying
assets'')? \14\ If so, how?
---------------------------------------------------------------------------

    \14\ As explained in Amendment No. 3 to the proposed rule
change, under normal market conditions, each ForceShares ETP may
invest in Standard & Poor's 500 Stock Price Index Futures contracts
(``Big S&P Contracts''), E-Mini S&P 500 Futures contracts (``E-
Minis'' and, together with Big S&P Contracts, ``Primary S&P
Interests''), swap agreements referencing Primary S&P Interests or
the S&P 500 Index, over-the-counter forward contracts referencing
Primary S&P Interests, options on Primary S&P Interests, and certain
``Cash Equivalents.'' For more information regarding the ForceShares
ETPs, see Amendment No. 3, available at https://www.sec.gov/comments/sr-nysearca-2016-120/nysearca2016120-1714666-150363.pdf.

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    2. How much additional end-of-day trading volume in the underlying
assets would the ForceShares ETPs potentially add? How much volume has
existing leveraged and inverse ETPs added to end-of-day trading in
their underlying assets?
    3. Would the trading activity relating to the ForceShares ETPs
exacerbate market movements or market volatility? Why or why not?
    4. What type of hedging exposure is expected to arise from trading
activity in these products?
    5. How would this hedging exposure change or otherwise react to
significant down market moves? For example, how might such hedging
exposure be adjusted?
    6. Would the listing and trading of shares of the ForceShares ETPs
change the current leveraged and inverse ETP market? If so, how?
    7. Do investors have access to information sufficient to fully
understand the operation and risks of the ForceShares ETPs?
    It is ordered that by December 20, 2018, any party or other person
may file any additional statement.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26403 Filed 12-4-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 143 (Friday, July 25, 2014)]
[Rules and Regulations]
[Pages 43239-43240]
[FR Doc No: 2014-17576]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2013-0910; Special Conditions No. 25-534-SC]

Special Conditions: Airbus Model A350-900 Airplanes; Isolation or
Protection of the Aircraft Electronic System Security From Unauthorized
Internal Access

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions.

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SUMMARY: These special conditions are issued for Airbus Model A350-900
airplanes. These airplanes will have a novel or unusual design feature
associated with airplane electronic system 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: Effective Date: August 25, 2014.

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<PHONE_NUMBER>; facsimile (425) 227-
1320.

SUPPLEMENTARY INFORMATION:

Background

    On August 25, 2008, Airbus applied for a type certificate for their
new Model A350-900 airplane. Later, Airbus requested, and the FAA
approved, an extension to the application for FAA type certification to
November 15, 2009. The Model A350-900 airplane has a conventional
layout with twin wing-mounted Rolls-Royce Trent XWB engines. It
features a twin-aisle, 9-abreast, economy-class layout, and
accommodates side-by-side placement of LD-3 containers in the cargo
compartment. The basic Model A350-900 airplane configuration
accommodates 315 passengers in a standard two-class arrangement. The
design cruise speed is Mach 0.85 with a maximum take-off weight of
602,000 lbs.
    Contemporary transport-category airplanes have both safety-related
and non-safety-related electronic system networks for many operational
functions. However, electronic system network security considerations
and functions have played a relatively minor role in the certification
of such systems because of the isolation, protection mechanisms, and
limited connectivity between the different networks.

Type Certification Basis

    Under Title 14, Code of Federal Regulations (14 CFR) 21.17, Airbus
must show that the Model A350-900 airplane meets the applicable
provisions of 14 CFR part 25, as amended by Amendments 25-1 through 25-
129.
    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 A350-900 airplane because of
a novel or unusual design feature, special conditions are prescribed
under Sec.  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 special conditions would also apply to the
other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the Model A350-900 airplane 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 must issue a
finding of regulatory adequacy under section 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 Sec.  11.38, and they become part of the type-certification basis
under Sec.  21.17(a)(2).

Novel or Unusual Design Features

    The Airbus Model A350-900 airplane will incorporate the following
novel or unusual design feature: An electronics network system
architecture that is novel or unusual for commercial transport
airplanes, and that introduces potential security risks and
vulnerabilities not addressed in current regulations and airplane-level
or system-level safety assessment methods.

Discussion

    The Airbus Model A350-900 airplane architecture is novel or unusual
for commercial transport airplanes because it 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 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 airplane systems. 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 to ensure that the security of airplane systems
and networks is not compromised by unauthorized wired or wireless
internal access.
    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.

Discussion of Comments

    Notice of proposed special conditions no. 25-13-20-SC for Airbus
Model A350-900 airplanes was published in the Federal Register on
December 17, 2013 (78 FR 76252). No comments were received, and the
special conditions are adopted as proposed.

Applicability

    As discussed above, these special conditions are applicable to
Airbus Model A350-900 airplanes. Should Airbus 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 Airbus Model A350-900 airplanes. It is not a rule of general
applicability.

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 type-certification basis for Airbus Model A350-900 airplanes.

Isolation of the Airplane Electronic System Security Protection from
Unauthorized Internal Access

    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-type-certification modifications that
may have an impact on the approved electronic system security
safeguards.

    Issued in Renton, Washington, on July 9, 2014.
Jeffrey E. Duven,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2014-17576 Filed 7-24-14; 8:45 am]
BILLING CODE 4910-13-P