Production and Airworthiness Approvals, Parts Marking, and Miscellaneous Proposals, 6968-6973 [E7-2537]
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6968
Proposed Rules
Federal Register
Vol. 72, No. 30
Wednesday, February 14, 2007
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 1, 21, 43, and 45
[Docket No. FAA–2006–25877; Notice No.
07–02]
Production and Airworthiness
Approvals, Parts Marking, and
Miscellaneous Proposals
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of availability and
request for comments.
AGENCY:
This notice announces the
availability of and requests comments
on the Initial Regulatory Flexibility
Analysis (IRFA) associated with the
notice of proposed rulemaking entitled,
Production and Airworthiness
Approvals, Parts Marking, and
Miscellaneous Proposals.
DATES: Send your comments to reach us
on or before April 2, 2007.
ADDRESSES: You may send comments
identified by Docket Number FAA–
2007—using any of the following
methods:
• DOT Docket Web site: Go to https://
dms.dot.gov and follow the instructions
for sending your comments
electronically.
• Governmentwide rulemaking Web
site: Go to https://www.regulations.gov
and follow the instructions for sending
your comments electronically.
• Mail: Docket Management Facility;
U.S. Department of Transportation, 400
Seventh Street, SW., Nassif Building,
Room PL–401, Washington, DC 20590–
0001.
• Fax: 1–202–493–2251.
• Hand Delivery: Room PL–401 on
the plaza level of the Nassif Building,
400 Seventh Street, SW., Washington,
DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
For more information on the
rulemaking process, see the
SUPPLEMENTARY INFORMATION section of
this document.
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SUMMARY:
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Privacy: We will post all comments
we receive, without change, to https://
dms.dot.gov, including any personal
information you provide. For more
information, see the Privacy Act
discussion in the SUPPLEMENTARY
INFORMATION section of this document.
Docket: To read background
documents or comments received, go to
https://dms.dot.gov at any time or to
Room PL–401 on the plaza level of the
Nassif Building, 400 Seventh Street,
SW., Washington, DC, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Barbara Capron, Production
Certification Branch, AIR–220, Federal
Aviation Administration, 800
Independence Ave., SW., Washington,
DC 20591; telephone number: (202)
267–3343.
SUPPLEMENTARY INFORMATION:
Comments Invited
The FAA invites interested persons to
participate in this rulemaking by
submitting written comments, data, or
views. The most helpful comments
reference a specific portion of the IRFA,
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
concerning this IRFA. The docket is
available for public inspection 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 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
You may also review the docket using
the Internet at the Web address in the
ADDRESSES section.
Privacy Act: Using the search function
of our docket Web site, anyone can find
and read the comments received into
any of our dockets, including the name
of the individual sending the comment
(or signing the comment on behalf of an
association, business, labor union, etc.).
You may review DOT’s complete
Privacy Act Statement in the Federal
Register published on April 11, 2000
(65 FR 19477–78) or you may visit
https://dms.dot.gov.
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The purpose behind an IRFA is to
notify small businesses of a rulemaking
activity that, if finalized, may adversely
affect a substantial number of small
businesses. If a rulemaking is likely to
have such an impact, we are required to
identify alternatives that may reduce
this impact. To adequately explore these
alternatives, we need the input of those
small businesses. Accordingly, we will
consider all comments we receive on or
before the closing date for comments.
However, your comments should be
limited to the IRFA since the comment
period on the NPRM has closed. We will
consider comments filed late if it is
possible to do so without incurring
expense or delay. We may change our
proposal in light of the comments we
receive.
If you want the FAA to acknowledge
receipt of your comments, include with
your comments a pre-addressed,
stamped postcard on which the docket
number appears. We will stamp the date
on the postcard and mail it to you.
Proprietary or Confidential Business
Information
Do not file in the docket information
that you consider to be proprietary or
confidential business information. Send
or deliver this information directly to
the person identified in the FOR FURTHER
INFORMATION CONTACT section of this
document. You must mark the
information that you consider
proprietary or confidential. If you send
the information on a disk or CD–ROM,
mark the outside of the disk or CD–ROM
and also identify electronically within
the disk or CD–ROM the specific
information that is proprietary or
confidential.
Under 14 CFR 11.35(b), when we are
aware of proprietary information filed
with a comment, we do not place it in
the docket. We hold it in a separate file
to which the public does not have
access, and place a note in the docket
that we have received it. If we receive
a request to examine or copy this
information, we treat it as any other
request under the Freedom of
Information Act (5 U.S.C. 552). We
process such a request under the DOT
procedures found in 49 CFR part 7.
Availability of Rulemaking Documents
You can get an electronic copy using
the Internet by:
(1) Searching the Department of
Transportation’s electronic Docket
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Management System (DMS) Web page
(https://dms.dot.gov/search);
(2) Visiting the FAA’s Regulations and
Policies Web page at https://
www.faa.gov/regulations_policies/; or
(3) Accessing the Government
Printing Office’s Web page at https://
www.gpoaccess.gov/fr/.
You can also get a copy by sending a
request to the Federal Aviation
Administration, Office of Rulemaking,
ARM–1, 800 Independence Avenue
SW., Washington, DC 20591, or by
calling (202) 267–9680. Make sure to
identify the docket number, notice
number, or amendment number of this
rulemaking.
Discussion
On October 5, 2006, the Federal
Aviation Administration (FAA) issued a
notice of proposed rulemaking (NPRM)
entitled, Production and Airworthiness
Approvals, Parts Marking, and
Miscellaneous Proposals (71 FR 58915).
The extended comment period for this
NPRM closed on February 5, 2007.
The Small Business Administration’s
Office of Advocacy has asked us, on
behalf of small businesses that may be
adversely affected by the proposed
rulemaking, to allow additional time for
small businesses to comment on the
Initial Regulatory Flexibility Analysis
associated with the NPRM.1 The
analysis examines whether the proposed
rulemaking would have a significant
economic impact on a substantial
number of small entities. We have
determined that the additional comment
period is consistent with the public
interest and that good cause exists for
taking this action. Accordingly, we are
establishing an additional 45-day
comment period on the Initial
Regulatory Flexibility Analysis.
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Initial Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980
(RFA) establishes ‘‘as a principle of
regulatory issuance that agencies shall
endeavor, consistent with the objective
of the rule and of applicable statutes, to
fit regulatory and informational
requirements to the scale of the
business, organizations, and
governmental jurisdictions subject to
regulation.’’ To achieve that principle,
the Act requires agencies to solicit and
consider flexible regulatory proposals
and to explain the rationale for their
actions. The Act covers a wide range of
small entities, including small
businesses, not-for-profit organizations
and small governmental jurisdictions.
1 This
analysis can also be found in the FAA’s
Initial Regulatory Evaluation, docket # FAA–2006–
25877–19.
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Agencies must perform a review to
determine whether a proposed or final
rule would have a significant economic
impact on a substantial number of small
entities. If the determination is that it
would, the agency must prepare a
regulatory flexibility analysis as
described in the Act.
However, if an agency determines that
a proposed or final rule is not expected
to have a significant economic impact
on a substantial number of small
entities, section 605(b) of the RFA
provides that the head of the agency
may so certify and a regulatory
flexibility analysis is not required. The
certification must include a statement
providing the factual basis for this
determination, and the reasoning should
be clear.
The FAA used the Small Business
Administration (SBA) guideline of 1,500
employees or less per firm as the
criterion for the determination of a
small business in aircraft
manufacturing. The FAA also used the
SBA guideline of 1,000 employees or
less per firm as the criterion for the
determination of a small business in
aircraft engine and engine parts
manufacturing, and/or other aircraft part
and auxiliary equipment
manufacturing.2
In order to determine if the proposed
rule will have a significant economic
impact on a substantial number of small
entities, lists of all U.S. aircraft, aircraft
engine, and other aircraft part and
auxiliary equipment manufacturers was
generated by the FAA Aircraft
Certification Directorate Offices.
Because the list was organized by the
type of production approval, a firm
could be listed more than once (e.g., a
firm could hold a TSO authorization as
well as a PMA). There are close to 2,000
records on this list.
From the lists of manufacturers
supplied by the Rotorcraft Directorate
(ASW) and the Small Airplane
Directorate (ACE), the FAA took a 10%
sample of firms that had already been
identified as small entities by the
Directorates (or 78 firms). From the lists
of manufacturers supplied by the
Transport Airplane Directorate (ANM)
and the Engine and Propeller
Directorate (ANE), the FAA took a 10%
sample of all firms (or 109 firms)
because those two Directorates had not
identified the firms that were small
entities. Hence, the FAA used a sample
of 187 firms (or approximately 10%) for
the analysis.
2 13 CFR 121.201, Size Standards Used to Define
Small Business Concerns, Sectors 31–33
Manufacturing, Subsector 336 Transportation
Equipment Manufacturing.
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Using information provided by the
ReferenceUSA Business Database,
company annual reports, and SEC
filings, all businesses with more than
1,500 employees for aircraft
manufacturer and 1,000 employees for
other manufacturers, and subsidiaries of
larger businesses, were excluded from
the list of small businesses. An example
of a subsidiary business is Bell
Helicopter, which is a subsidiary of
Textron, Inc. For the remaining
businesses, the FAA obtained company
revenue information from these three
sources, when the revenue was made
public.
By applying this methodology to the
10% sample, the FAA verified that 109
firms are small entities, 32 firms are
large businesses or subsidiaries of large
businesses or consortiums, and 46 firms
could not be found in the database and/
or had no revenue information
available. Among the 109 verified small
entities, 5 are small PCs, 19 are small
TSO authorization holders, and 85 are
small PMAs.
The FAA estimates that the average
discounted compliance cost for a small
PC is approximately $582,000, for a
small TSO authorization holder is
approximately $52,000, and for a small
PMA is approximately $15,000. (Refer to
Appendix E.) The annualized cost for a
small PC is estimated at $82,881
($582,120 * 0.142378 = $82,881), for a
small TSO authorization holder is
estimated at $7,342 ($51,566 * 0.142378
= $7,342), and for a small PMA is
estimated at $2,153 ($15,125 * 0.142378
= $2,153).
The degree to which small
manufacturers can ‘‘afford’’ the cost of
compliance is determined by the
availability of financial resources. The
initial implementation costs of the
proposed rule may be financed, paid for
using existing company assets, or
borrowed. As a proxy for the firm’s
ability to afford the cost of compliance,
the FAA calculated the ratio of the total
annualized cost of the proposed rule as
a percentage of annual revenue. This
ratio is a conservative measure as the
annualized value of the 10-year total
compliance cost is divided by one year
of annual revenue. Appendix F shows
that one of the small businesses
sampled would incur costs greater than
1 percent of their annual revenue. Since
this is based on a 10% sample,
approximately 10 small businesses
would incur costs greater than 1 percent
of their annual revenue.
Thus, the FAA believes that
approximately 10 small entities would
incur a substantial economic impact in
the form of higher annual costs as a
result of this proposed rule. Therefore,
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the FAA thinks that the rule may have
a significant economic impact on a
substantial number of small entities.
However, the FAA does not think that
the implementation of this proposed
regulation would cause any of these
companies to become bankrupt.
Questions to be addressed in an
Initial Regulatory Flexibility Analysis
(IRFA):
1. Which small entities will be
impacted most? PC holders and TSO
authorization holders. Should the
definition of ‘‘small entity’’ be redefined
for purposes of the Regulatory
Flexibility Act of 1980 (RFA)? No.
2. Are all the required elements of an
IRFA present, particularly a description
of all compliance requirements, and a
clear explanation of the need for and
objectives of the rule? Yes. This Federal
Aviation Administration (FAA)
proposed rule would make various
changes in design, production, and
identification regulations for products
and parts. These proposed changes
include establishing a single set of
quality system requirements applicable
to all production approval holders as
well as requiring an airworthiness
approval document to be issued with all
products and parts shipments from a
production approval holder. The
proposed rule would also revise aircraft
parts marking requirements. For
additional information, refer to the
Regulatory Evaluation for a description
of all compliance requirements and
further explanations of the need for and
objectives of the rule.
3. Have all major cost factors been
developed and analyzed? Yes. Refer to
Appendix E for the cost factors for a
small entity by type of production
approval.
Small entity
4. What alternatives will allow the
agency to accomplish its regulatory
objectives while minimizing the impact
on small entities?
Alternative 1: No Action.
This alternative would have no
impact on small entities. The FAA
decided to discard this alternative
because it would not enhance safety.
Among other things, the FAA proposes
to enhance safety by (1) establishing a
single set of quality system
requirements applicable to all
production approval holders, (2)
requiring an airworthiness approval
document to be issued with all products
and parts shipments from a production
approval holder, and (3) revising aircraft
parts marking requirements.
Alternative 2: Partial Proposed Rule.
The partial proposed rule would be
the complete proposed rule with the
exception of the requirement for
airworthiness approval tags (Form
8130–3) with all part or product sales/
shipments. This requirement is the most
costly proposal for the manufacturers. If
this were not included in the proposed
rule, then there would not be a
significant economic impact on a
substantial number of small entities.
Alternative 3: Complete Proposed
Rule.
The complete proposed rule is more
costly for small entities, but the FAA
recommends proceeding with the
complete proposed rule instead of
Alternative 2 for several reasons.
• The Form 8130–3 is the recognized
industry standard document that
provides legal proof that the part was
produced by an FAA-approved source
and is airworthy. Use of the Form in this
way parallels what is done in Europe
with the EASA Form One.
• A common, easily recognizable
Form is needed with all new parts
Discounted
total costs
Total costs
shipments so that the receiver can easily
verify the airworthiness of the part and
authority of the producer.
• Most non-US aviation agencies
demand a completed Form 8130–3 for
parts imported into their country. The
FAA recommends it for domestic use
also because it makes sense to use a
common form for all shipments, rather
than different forms for domestic versus
export shipments.
• Legal enforcement for misuse—
since the 8130–3 is a Federal form,
misuse of the Form is a Federal offense.
5. Competitiveness Analysis:
This rule is a comprehensive rule that
impacts all production approval holders
including PC holders, TSO
authorization holders, and PMA
holders. This covers a wide variety of
businesses (e.g., balloons, gliders,
helicopters, small airplanes, large
transport category airplanes, engine
manufacturers, propeller manufacturers,
seat belt manufacturers, seat
manufacturers, and so forth). Market
share within the industry probably
would not change due to this proposed
regulation, and the industry itself would
not lose market share to other products
or services.
6. Business closure analysis:
The FAA thinks that there would not
be any small businesses that close due
to the proposed regulation because there
were only about 10 companies that
would have costs that exceed one
percent of revenues, more specifically,
their costs would be approximately
1.1% of revenues. The FAA estimates
that these costs are not high enough to
force companies into bankruptcy.
7. Disproportionality Analysis:
The table below shows the differences
in the impacts on small businesses as
compared to large ones.
Large entity
Total costs
Discounted
total costs
$1,600
10,000
2,000
300
500
1,000,000
$917
5,733
1,526
229
381
573,333
Large PCs:
21.9(a)(4) ..................................
21.123(e) ...................................
21.137(h) ...................................
21.137(m) ..................................
21.137(n) ...................................
21.146(d) ...................................
$128,000
0
0
0
0
706,667
$73,387
0
0
0
0
405,156
Subtotal ..............................
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Small PCs:
21.9(a)(4) ...................................
21.123(e) ...................................
21.137(h) ...................................
21.137(m) ..................................
21.137(n) ...................................
21.146(d) ...................................
1,014,400
582,120
Subtotal ..............................
834,667
478,542
Small TSOAs:
21.9(a)(4) ...................................
21.605 .......................................
21.616(d) ...................................
45.15(b) .....................................
375
50
4,500
85,000
215
38
2,580
48,733
Large TSOAs:
21.9(a)(4) ..................................
21.605 .......................................
21.616(d) ...................................
45.15(b) .....................................
0
0
3,668,750
572,000
0
0
2,103,417
327,947
Subtotal ..............................
89,925
51,566
Subtotal ..............................
4,240,750
2,431,364
Small PMAs:
21.9(a)(4) ...................................
21.303(a)(5) ...............................
1,250
50
717
38
Large PMAs:
21.9(a)(4) ..................................
21.303(a)(5) ..............................
0
50
0
38
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Small entity
Discounted
total costs
Total costs
Large entity
Discounted
total costs
Total costs
21.307 .......................................
21.308 .......................................
21.316(d) ...................................
400
400
24,000
305
305
13,760
21.307 .......................................
21.308 .......................................
21.316(d) ...................................
80
200
825,000
61
153
473,000
Subtotal ..............................
26,100
15,125
Subtotal ..............................
825,330
473,252
Large PCs appear to have lower costs
on these requirements because the
requirements are already current
practice. Large TSOAs and large PMAs
have higher costs on these requirements
compared to their respective smaller
entities. The FAA estimates that there
would be no significant change in
market share due to this proposed
regulation.
APPENDIX E.—COSTS FOR SMALL BUSINESSES
[per firm]
Total Costs
Discounted
total costs
$160
1,000
..............
..............
..............
100,000
$1,600
10,000
2,000
300
500
1,000,000
$917
5,733
1,526
229
381
573,333
..............
..............
1,014,400
582,120
38
..............
450
8,500
38
..............
450
8,500
38
..............
450
8,500
375
50
4,500
85,000
215
38
2,580
48,733
..............
..............
..............
..............
89,925
51,566
125
..............
..............
..............
2,400
125
..............
..............
..............
2,400
125
..............
..............
..............
2,400
125
..............
..............
..............
2,400
125
..............
..............
..............
2,400
1,250
50
400
400
24,000
717
38
305
305
13,760
..............
..............
..............
..............
..............
26,100
15,125
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Small PCs:
21.9(a)(4) .......................
21.123(e) .......................
21.137(h) .......................
21.137(m) ......................
21.137(n) .......................
21.146(d) .......................
$160
1,000
2,000
300
500
100,000
$160
1,000
..............
..............
..............
100,000
$160
1,000
..............
..............
..............
100,000
$160
1,000
..............
..............
..............
100,000
$160
1,000
..............
..............
..............
100,000
$160
1,000
..............
..............
..............
100,000
$160
1,000
..............
..............
..............
100,000
$160
1,000
..............
..............
..............
100,000
$160
1,000
..............
..............
..............
100,000
Subtotal ..................
..............
..............
..............
..............
..............
..............
..............
..............
Small TSOAs:
21.9(a)(4) .......................
21.605 ...........................
21.616(d) .......................
45.15(b) .........................
38
50
450
8,500
38
..............
450
8,500
38
..............
450
8,500
38
..............
450
8,500
38
..............
450
8,500
38
..............
450
8,500
38
..............
450
8,500
Subtotal ..................
..............
..............
..............
..............
..............
..............
Small PMAs:
21.9(a)(4) .......................
21.303(a)(5) ...................
21.307 ...........................
21.308 ...........................
21.316(d) .......................
125
50
400
400
2,400
125
..............
..............
..............
2,400
125
..............
..............
..............
2,400
125
..............
..............
..............
2,400
125
..............
..............
..............
2,400
Subtotal ..................
..............
..............
..............
..............
..............
APPENDIX F.—ECONOMIC IMPACT ON A REPRESENTATIVE SAMPLE OF SMALL BUSINESSES
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Production basis
Manufacturer
State
Revenues
(avg est.)
PC .....................
PC .....................
PC .....................
PC .....................
PC .....................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
AEROSTAR AIRCRAFT CORP ..............................................................
AIR TRACTOR, INC. ...............................................................................
AMERICAN CHAMPION AIRCRAFT CORP ..........................................
UNIVAIR AIRCRAFT CORP ...................................................................
WILLIAMS INTERNATIONAL ..................................................................
A&C PRODUCTS, INC ............................................................................
ABLE AIR ................................................................................................
ACCURATE BUSHING COMPANY INC .................................................
ACR ELECTRONICS INC .......................................................................
ADVANCED HYPERFINE PRODUCTS ..................................................
AERO DECALS .......................................................................................
AERO SEATS AND SYSTEMS, INC ......................................................
AERO TECHNICAL ALLIANCE INC .......................................................
AERODYNE ENGINEERING ..................................................................
AERONCA INC ........................................................................................
AEROSPACE SYSTEMS. & COMPONENTS, INC ................................
AIRBORNE TECHNOLOGIES, INC ........................................................
AIRCRAFT INSTRUMENTS ....................................................................
AIRCRAFT SPECIALTIES SERVICES, INC ...........................................
AIRWELD, INC ........................................................................................
AIRWOLF FILTER CORP .......................................................................
AMERICAN POLARIZERS, INC .............................................................
AMGLO KEMLITE LABORATORIES, INC ..............................................
APACHE ENTERPRISES .......................................................................
AVIATION DEVELOPMENT CORP ........................................................
ID ....
TX ...
WI ...
CO ..
MI ....
TX ...
CA ...
NJ ...
FL ...
CA ...
FL ...
TX ...
FL ...
CA ...
OH ..
KS ...
CA ...
PA ...
OK ..
CA ...
OH ..
PA ...
IL .....
TX ...
WA ..
$15,000,000
75,000,000
35,000,000
7,500,000
75,000,000
1,750,000
750,000
3,750,000
75,000,000
250,000
750,000
1,750,000
1,750,000
250,000
75,000,000
3,750,000
7,500,000
1,750,000
3,750,000
1,750,000
1,750,000
3,750,000
15,000,000
7,500,000
750,000
VerDate Aug<31>2005
17:26 Feb 13, 2007
Jkt 211001
PO 00000
Frm 00004
Fmt 4702
Sfmt 4702
E:\FR\FM\14FEP1.SGM
14FEP1
Annualized
cost of rule
$82,881
82,881
82,881
82,881
82,881
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
Percent
0.55
0.11
0.24
1.11
0.11
0.12
0.29
0.06
0.00
0.86
0.29
0.12
0.12
0.86
0.00
0.06
0.03
0.12
0.06
0.12
0.12
0.06
0.01
0.03
0.29
6972
Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Proposed Rules
APPENDIX F.—ECONOMIC IMPACT ON A REPRESENTATIVE SAMPLE OF SMALL BUSINESSES—Continued
rmajette on PROD1PC67 with PROPOSALS
Production basis
Manufacturer
State
Revenues
(avg est.)
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
PMA ..................
TSOA ................
TSOA ................
TSOA ................
TSOA ................
TSOA ................
TSOA ................
AVION RESEARCH ................................................................................
BIZJET INTERNATIONAL SALES ..........................................................
BRAUER AEROSPACE PRODUCTS, INC ............................................
BREEZE-EASTERN CORP .....................................................................
BRUCE INDUSTRIES, INC .....................................................................
CAMARILLO AIRCRAFT SERVICE ........................................................
CANARD AEROSPACE CORPORATION ..............................................
CEE BAILEY’S AIRCRAFT PLASTICS ...................................................
COLLINS AIRCRAFT DYNAMICS, INC ..................................................
COMANT INDUSTRIES, INC ..................................................................
CONAX FLORIDA CORPORATION .......................................................
DAVTRON ...............................................................................................
DER ASSOCIATES INC ..........................................................................
DEUTSCH RELAYS, INC ........................................................................
DOW-ELCO INC ......................................................................................
DUSTERS AND SPRAYERS, INC ..........................................................
DYNAMIC AIR ENGINEERING ...............................................................
E.J. MLYNARCZYK & CO., INC .............................................................
ELECTRONIC CABLE SPECIALISTS ....................................................
ESSEX INDUSTRIES INC ......................................................................
FLEXFAB DIVISION ................................................................................
FLIGHT DYNAMICS ................................................................................
FRANKLIN AIRCRAFT ENGINES, INC ..................................................
HELI-TECH ..............................................................................................
HYDRAFLOW ..........................................................................................
INTERNATIONAL AERO INC .................................................................
JAY-DEE AIRCRAFT SUPPLY CO., INC ...............................................
JORMAC, INC. ........................................................................................
KEITH PRODUCTS, L.P .........................................................................
KING AIRE, INC ......................................................................................
LTA AVIATION, INC ................................................................................
MAGNETIC SEAL CORP ........................................................................
MED-FLITE OF MIDAMERICA, INC .......................................................
MILLENNIUM CONCEPTS, INC .............................................................
MILMAN ENGINEERING INC .................................................................
NASERA CORPORATION ......................................................................
NORDAM TEXAS ....................................................................................
NORTHEAST AERO COMPRESSOR CORP ........................................
OTTO ENGINEERING INC .....................................................................
PACIFIC PRECISION PRODUCTS ........................................................
PARAVION TECHNOLOGY INC ............................................................
PETERSON’S PERFORMANCE PLUS ..................................................
PLASTIC MOLDED PRODUCTS ............................................................
PRECISION PATTERN INC ....................................................................
QED, INC .................................................................................................
RALMARK COMPANY ............................................................................
RAY’S AIRCRAFT SERVICE ..................................................................
ROTOR DYNAMICS AMERICAS, INC ...................................................
SAINT GOBAIN PERFORMANCE PLASTIC ..........................................
SEAL DYNAMICS, INC ...........................................................................
SENSOR SYSTEMS L.L.C .....................................................................
SKYBOLT AEROMOTIVE CORP ...........................................................
SKYLIGHT AVIONICS CO ......................................................................
SPECTRUM AEROMED, INC .................................................................
STEIN SEAL ............................................................................................
STERLING AVIATION TECHNOLOGIES ...............................................
TANIS AIRCRAFT SERVICES, INC .......................................................
TEXAS AIR STAR, INC. ..........................................................................
THORNTON TECHNOLOGY CORP ......................................................
UMPCO, INC ...........................................................................................
VALCOR ENGINEERING ........................................................................
VARGA ENTERPRISES, INC .................................................................
WECO AEROSPACE SYSTEMS, INC ...................................................
WENDON COMPANY, INC .....................................................................
WINDSOR AIRMOTIVE ..........................................................................
AERO TWIN, INCORPORATED .............................................................
AIRCRAFT BELTS INC ...........................................................................
AIRPATH INSTR. CO ..............................................................................
AVIONICS INNOVATIONS ......................................................................
BURL’S AIRCRAFT REBUILD ................................................................
CASTLE INDUSTRIES, INC ...................................................................
CA ...
OK ..
AL ...
NJ ...
NV ...
CA ...
MN ..
CA ...
TX ...
CA ...
FL ...
CA ...
KS ...
NY ...
CA ...
OK ..
CA ...
FL ...
WI ...
MO ..
MI ....
OR ..
CO ..
OR ..
CA ...
WA ..
CA ...
FL ...
TX ...
KS ...
NY ...
RI ....
KS ...
KS ...
WA ..
NC ..
TX ...
NY ...
IL .....
CA ...
CO ..
KS ...
WA ..
KS ...
CA ...
PA ...
CA ...
TX ...
WA ..
NY ...
FL ...
FL ...
CA ...
MN ..
PA ...
WA ..
MN ..
TX ...
CA ...
CA ...
NJ ...
AZ ...
CA ...
CT ...
CT ...
AK ...
TX ...
MO ..
CA ...
AK ...
CA ...
750,000
15,000,000
3,750,000
72,300,000
15,000,000
250,000
1,750,000
15,000,000
750,000
15,000,000
7,500,000
3,750,000
250,000
35,000,000
3,750,000
1,750,000
7,500,000
7,500,000
300,000,000
7,500,000
300,000,000
1,750,000
1,750,000
1,750,000
35,000,000
35,000,000
3,750,000
1,750,000
15,000,000
250,000
250,000
7,500,000
250,000
1,750,000
250,000
1,750,000
35,000,000
3,750,000
15,000,000
1,750,000
7,500,000
1,750,000
15,000,000
15,000,000
7,500,000
1,750,000
750,000
250,000
15,000,000
35,000,000
35,000,000
7,500,000
1,750,000
7,500,000
35,000,000
1,750,000
750,000
750,000
15,000,000
15,000,000
35,000,000
7,500,000
15,000,000
7,500,000
15,000,000
3,750,000
35,000,000
3,750,000
750,000
1,750,000
75,000,000
VerDate Aug<31>2005
15:31 Feb 13, 2007
Jkt 211001
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
E:\FR\FM\14FEP1.SGM
14FEP1
Annualized
cost of rule
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
2,153
7,342
7,342
7,342
7,342
7,342
7,342
Percent
0.29
0.01
0.06
0.00
0.01
0.86
0.12
0.01
0.29
0.01
0.03
0.06
0.86
0.01
0.06
0.12
0.03
0.03
0.00
0.03
0.00
0.12
0.12
0.12
0.01
0.01
0.06
0.12
0.01
0.86
0.86
0.03
0.86
0.12
0.86
0.12
0.01
0.06
0.01
0.12
0.03
0.12
0.01
0.01
0.03
0.12
0.29
0.86
0.01
0.01
0.01
0.03
0.12
0.03
0.01
0.12
0.29
0.29
0.01
0.01
0.01
0.03
0.01
0.03
0.01
0.20
0.02
0.20
0.98
0.42
0.01
6973
Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 / Proposed Rules
APPENDIX F.—ECONOMIC IMPACT ON A REPRESENTATIVE SAMPLE OF SMALL BUSINESSES—Continued
Revenues
(avg est.)
Annualized
cost of rule
Production basis
Manufacturer
State
TSOA ................
TSOA ................
TSOA ................
DIAMOND J , INC ...................................................................................
ESSEX INDUSTRIES INC ......................................................................
GLOBE MOTORS INTERNATIONAL LOGISTICS SUPPORT CORP.
(ILSC).
..................................................................................................................
KOLLSMAN INC ......................................................................................
KOSOLA & ASSOCIATES ......................................................................
NORTH AMERICAN AERODYNAMICS .................................................
PHAOSTRON INSTRUMENTS & ELEC. CO .........................................
R.A. MILLER INDUSTRIES INC .............................................................
SATCO, INC ............................................................................................
SIGMA TEK, INC .....................................................................................
SOUTHWEST PRODUCTS COMPANY .................................................
VISION MICROSYSTEMS ......................................................................
KS ...
MO ..
AL ...
3,750,000
7,500,000
75,000,000
7,342
7,342
7,342
0.20
0.10
0.01
AZ ...
NH ..
GA ..
NC ..
CA ...
MI ....
CA ...
KS ...
CA ...
WA ..
1,750,000
750,000
3,750,000
15,000,000
15,000,000
15,000,000
75,000,000
35,000,000
15,000,000
1,750,000
7,342
7,342
7,342
7,342
7,342
7,342
7,342
7,342
7,342
7,342
0.42
0.98
0.20
0.05
0.05
0.05
0.01
0.02
0.05
0.42
TSOA
TSOA
TSOA
TSOA
TSOA
TSOA
TSOA
TSOA
TSOA
TSOA
................
................
................
................
................
................
................
................
................
................
Issued in Washington, DC on February 8,
2007.
Pamela Hamilton-Powell,
Director, Office of Rulemaking.
[FR Doc. E7–2537 Filed 2–13–07; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2007–27152; Directorate
Identifier 2006–NM–219–AD]
RIN 2120–AA64
Airworthiness Directives; McDonnell
Douglas Model 717–200 Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Notice of proposed rulemaking
(NPRM).
rmajette on PROD1PC67 with PROPOSALS
AGENCY:
SUMMARY: The FAA proposes to adopt a
new airworthiness directive (AD) for
certain McDonnell Douglas Model 717–
200 airplanes. This proposed AD would
require installing a certain junction(s)
and changing the wiring of the first
officer’s pitot static heater system. This
proposed AD results from a report of
temporary loss of the auto-flight
function with displays of suspect or
erratic airspeed indications. We are
proposing this AD to prevent display of
suspect or erratic airspeed indications
during heavy rain conditions, which
could reduce the ability of the
flightcrew to maintain the safe flight
and landing of the airplane.
DATES: We must receive comments on
this proposed AD by April 2, 2007.
ADDRESSES: Use one of the following
addresses to submit comments on this
proposed AD.
VerDate Aug<31>2005
15:31 Feb 13, 2007
Jkt 211001
• DOT Docket Web site: Go to https://
dms.dot.gov and follow the instructions
for sending your comments
electronically.
• Government-wide rulemaking Web
site: Go to https://www.regulations.gov
and follow the instructions for sending
your comments electronically.
• Mail: Docket Management Facility,
U.S. Department of Transportation, 400
Seventh Street, SW., Nassif Building,
room PL–401, Washington, DC 20590.
• Fax: (202) 493–2251.
• Hand Delivery: Room PL–401 on
the plaza level of the Nassif Building,
400 Seventh Street, SW., Washington,
DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
Contact Boeing Commercial
Airplanes, Long Beach Division, 3855
Lakewood Boulevard, Long Beach,
California 90846, Attention: Data and
Service Management, Dept. C1–L5A
(D800–0024), for the service information
identified in this proposed AD.
FOR FURTHER INFORMATION CONTACT: Dan
Bui, Aerospace Engineer, Systems and
Equipment Branch, ANM–130L, FAA,
Los Angeles Aircraft Certification
Office, 3960 Paramount Boulevard,
Lakewood, California 90712–4137;
telephone (562) 627–5339; fax (562)
627–5210.
SUPPLEMENTARY INFORMATION:
Comments Invited
We invite you to submit any relevant
written data, views, or arguments
regarding this proposed AD. Send your
comments to an address listed in the
ADDRESSES section. Include the docket
number ‘‘FAA–2007–27152; Directorate
Identifier 2006–NM–219–AD’’ at the
beginning of your comments. We
specifically invite comments on the
overall regulatory, economic,
environmental, and energy aspects of
the proposed AD. We will consider all
comments received by the closing date
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
Percent
and may amend the proposed AD in
light of those comments.
We will post all comments we
receive, without change, to https://
dms.dot.gov, including any personal
information you provide. We will also
post a report summarizing each
substantive verbal contact with FAA
personnel concerning this proposed AD.
Using the search function of that Web
site, anyone can find and read the
comments in any of our dockets,
including the name of the individual
who sent the comment (or signed the
comment on behalf of an association,
business, labor union, etc.). You may
review DOT’s complete Privacy Act
Statement in the Federal Register
published on April 11, 2000 (65 FR
19477–78), or you may visit https://
dms.dot.gov.
Examining the Docket
You may examine the AD docket on
the Internet at https://dms.dot.gov, or in
person at the Docket Management
Facility office between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays. The Docket
Management Facility office (telephone
(800) 647–5227) is located on the plaza
level of the Nassif Building at the DOT
street address stated in the ADDRESSES
section. Comments will be available in
the AD docket shortly after the Docket
Management System receives them.
Discussion
We have received a report of
temporary loss of the auto-flight
function with displays of suspect or
erratic airspeed indications on a
McDonnell Douglas Model 717–200
airplane during climb-out in very heavy
rain. The suspect or erratic indications
were consistent with loss of air data
sensor heating caused by ice build-up
on unheated captain’s, first officer’s,
and auxiliary’s pitot sensors. In
E:\FR\FM\14FEP1.SGM
14FEP1
]]>Agencies
[Federal Register Volume 72, Number 30 (Wednesday, February 14, 2007)]
[Proposed Rules]
[Pages 6968-6973]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2537]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 72, No. 30 / Wednesday, February 14, 2007 /
Proposed Rules
[[Page 6968]]
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 1, 21, 43, and 45
[Docket No. FAA-2006-25877; Notice No. 07-02]
Production and Airworthiness Approvals, Parts Marking, and
Miscellaneous Proposals
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Notice of availability and request for comments.
-----------------------------------------------------------------------
SUMMARY: This notice announces the availability of and requests
comments on the Initial Regulatory Flexibility Analysis (IRFA)
associated with the notice of proposed rulemaking entitled, Production
and Airworthiness Approvals, Parts Marking, and Miscellaneous
Proposals.
DATES: Send your comments to reach us on or before April 2, 2007.
ADDRESSES: You may send comments identified by Docket Number FAA-2007--
using any of the following methods:
DOT Docket Web site: Go to https://dms.dot.gov and follow
the instructions for sending your comments electronically.
Governmentwide rulemaking Web site: Go to https://
www.regulations.gov and follow the instructions for sending your
comments electronically.
Mail: Docket Management Facility; U.S. Department of
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401,
Washington, DC 20590-0001.
Fax: 1-202-493-2251.
Hand Delivery: Room PL-401 on the plaza level of the
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
For more information on the rulemaking process, see the
SUPPLEMENTARY INFORMATION section of this document.
Privacy: We will post all comments we receive, without change, to
https://dms.dot.gov, including any personal information you provide. For
more information, see the Privacy Act discussion in the SUPPLEMENTARY
INFORMATION section of this document.
Docket: To read background documents or comments received, go to
https://dms.dot.gov at any time or to Room PL-401 on the plaza level of
the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Barbara Capron, Production
Certification Branch, AIR-220, Federal Aviation Administration, 800
Independence Ave., SW., Washington, DC 20591; telephone number: (202)
267-3343.
SUPPLEMENTARY INFORMATION:
Comments Invited
The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. The most
helpful comments reference a specific portion of the IRFA, 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
concerning this IRFA. The docket is available for public inspection
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 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays. You may also review the docket using the Internet at
the Web address in the ADDRESSES section.
Privacy Act: Using the search function of our docket Web site,
anyone can find and read the comments received into any of our dockets,
including the name of the individual sending the comment (or signing
the comment on behalf of an association, business, labor union, etc.).
You may review DOT's complete Privacy Act Statement in the Federal
Register published on April 11, 2000 (65 FR 19477-78) or you may visit
https://dms.dot.gov.
The purpose behind an IRFA is to notify small businesses of a
rulemaking activity that, if finalized, may adversely affect a
substantial number of small businesses. If a rulemaking is likely to
have such an impact, we are required to identify alternatives that may
reduce this impact. To adequately explore these alternatives, we need
the input of those small businesses. Accordingly, we will consider all
comments we receive on or before the closing date for comments.
However, your comments should be limited to the IRFA since the comment
period on the NPRM has closed. We will consider comments filed late if
it is possible to do so without incurring expense or delay. We may
change our proposal in light of the comments we receive.
If you want the FAA to acknowledge receipt of your comments,
include with your comments a pre-addressed, stamped postcard on which
the docket number appears. We will stamp the date on the postcard and
mail it to you.
Proprietary or Confidential Business Information
Do not file in the docket information that you consider to be
proprietary or confidential business information. Send or deliver this
information directly to the person identified in the FOR FURTHER
INFORMATION CONTACT section of this document. You must mark the
information that you consider proprietary or confidential. If you send
the information on a disk or CD-ROM, mark the outside of the disk or
CD-ROM and also identify electronically within the disk or CD-ROM the
specific information that is proprietary or confidential.
Under 14 CFR 11.35(b), when we are aware of proprietary information
filed with a comment, we do not place it in the docket. We hold it in a
separate file to which the public does not have access, and place a
note in the docket that we have received it. If we receive a request to
examine or copy this information, we treat it as any other request
under the Freedom of Information Act (5 U.S.C. 552). We process such a
request under the DOT procedures found in 49 CFR part 7.
Availability of Rulemaking Documents
You can get an electronic copy using the Internet by:
(1) Searching the Department of Transportation's electronic Docket
[[Page 6969]]
Management System (DMS) Web page (https://dms.dot.gov/search);
(2) Visiting the FAA's Regulations and Policies Web page at https://
www.faa.gov/regulations_policies/; or
(3) Accessing the Government Printing Office's Web page at https://
www.gpoaccess.gov/fr/.
You can also get a copy by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Make
sure to identify the docket number, notice number, or amendment number
of this rulemaking.
Discussion
On October 5, 2006, the Federal Aviation Administration (FAA)
issued a notice of proposed rulemaking (NPRM) entitled, Production and
Airworthiness Approvals, Parts Marking, and Miscellaneous Proposals (71
FR 58915). The extended comment period for this NPRM closed on February
5, 2007.
The Small Business Administration's Office of Advocacy has asked
us, on behalf of small businesses that may be adversely affected by the
proposed rulemaking, to allow additional time for small businesses to
comment on the Initial Regulatory Flexibility Analysis associated with
the NPRM.\1\ The analysis examines whether the proposed rulemaking
would have a significant economic impact on a substantial number of
small entities. We have determined that the additional comment period
is consistent with the public interest and that good cause exists for
taking this action. Accordingly, we are establishing an additional 45-
day comment period on the Initial Regulatory Flexibility Analysis.
---------------------------------------------------------------------------
\1\ This analysis can also be found in the FAA's Initial
Regulatory Evaluation, docket FAA-2006-25877-19.
---------------------------------------------------------------------------
Initial Regulatory Flexibility Analysis
The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a
principle of regulatory issuance that agencies shall endeavor,
consistent with the objective of the rule and of applicable statutes,
to fit regulatory and informational requirements to the scale of the
business, organizations, and governmental jurisdictions subject to
regulation.'' To achieve that principle, the Act requires agencies to
solicit and consider flexible regulatory proposals and to explain the
rationale for their actions. The Act covers a wide range of small
entities, including small businesses, not-for-profit organizations and
small governmental jurisdictions.
Agencies must perform a review to determine whether a proposed or
final rule would have a significant economic impact on a substantial
number of small entities. If the determination is that it would, the
agency must prepare a regulatory flexibility analysis as described in
the Act.
However, if an agency determines that a proposed or final rule is
not expected to have a significant economic impact on a substantial
number of small entities, section 605(b) of the RFA provides that the
head of the agency may so certify and a regulatory flexibility analysis
is not required. The certification must include a statement providing
the factual basis for this determination, and the reasoning should be
clear.
The FAA used the Small Business Administration (SBA) guideline of
1,500 employees or less per firm as the criterion for the determination
of a small business in aircraft manufacturing. The FAA also used the
SBA guideline of 1,000 employees or less per firm as the criterion for
the determination of a small business in aircraft engine and engine
parts manufacturing, and/or other aircraft part and auxiliary equipment
manufacturing.\2\
---------------------------------------------------------------------------
\2\ 13 CFR 121.201, Size Standards Used to Define Small Business
Concerns, Sectors 31-33 Manufacturing, Subsector 336 Transportation
Equipment Manufacturing.
---------------------------------------------------------------------------
In order to determine if the proposed rule will have a significant
economic impact on a substantial number of small entities, lists of all
U.S. aircraft, aircraft engine, and other aircraft part and auxiliary
equipment manufacturers was generated by the FAA Aircraft Certification
Directorate Offices. Because the list was organized by the type of
production approval, a firm could be listed more than once (e.g., a
firm could hold a TSO authorization as well as a PMA). There are close
to 2,000 records on this list.
From the lists of manufacturers supplied by the Rotorcraft
Directorate (ASW) and the Small Airplane Directorate (ACE), the FAA
took a 10% sample of firms that had already been identified as small
entities by the Directorates (or 78 firms). From the lists of
manufacturers supplied by the Transport Airplane Directorate (ANM) and
the Engine and Propeller Directorate (ANE), the FAA took a 10% sample
of all firms (or 109 firms) because those two Directorates had not
identified the firms that were small entities. Hence, the FAA used a
sample of 187 firms (or approximately 10%) for the analysis.
Using information provided by the ReferenceUSA Business Database,
company annual reports, and SEC filings, all businesses with more than
1,500 employees for aircraft manufacturer and 1,000 employees for other
manufacturers, and subsidiaries of larger businesses, were excluded
from the list of small businesses. An example of a subsidiary business
is Bell Helicopter, which is a subsidiary of Textron, Inc. For the
remaining businesses, the FAA obtained company revenue information from
these three sources, when the revenue was made public.
By applying this methodology to the 10% sample, the FAA verified
that 109 firms are small entities, 32 firms are large businesses or
subsidiaries of large businesses or consortiums, and 46 firms could not
be found in the database and/or had no revenue information available.
Among the 109 verified small entities, 5 are small PCs, 19 are small
TSO authorization holders, and 85 are small PMAs.
The FAA estimates that the average discounted compliance cost for a
small PC is approximately $582,000, for a small TSO authorization
holder is approximately $52,000, and for a small PMA is approximately
$15,000. (Refer to Appendix E.) The annualized cost for a small PC is
estimated at $82,881 ($582,120 * 0.142378 = $82,881), for a small TSO
authorization holder is estimated at $7,342 ($51,566 * 0.142378 =
$7,342), and for a small PMA is estimated at $2,153 ($15,125 * 0.142378
= $2,153).
The degree to which small manufacturers can ``afford'' the cost of
compliance is determined by the availability of financial resources.
The initial implementation costs of the proposed rule may be financed,
paid for using existing company assets, or borrowed. As a proxy for the
firm's ability to afford the cost of compliance, the FAA calculated the
ratio of the total annualized cost of the proposed rule as a percentage
of annual revenue. This ratio is a conservative measure as the
annualized value of the 10-year total compliance cost is divided by one
year of annual revenue. Appendix F shows that one of the small
businesses sampled would incur costs greater than 1 percent of their
annual revenue. Since this is based on a 10% sample, approximately 10
small businesses would incur costs greater than 1 percent of their
annual revenue.
Thus, the FAA believes that approximately 10 small entities would
incur a substantial economic impact in the form of higher annual costs
as a result of this proposed rule. Therefore,
[[Page 6970]]
the FAA thinks that the rule may have a significant economic impact on
a substantial number of small entities. However, the FAA does not think
that the implementation of this proposed regulation would cause any of
these companies to become bankrupt.
Questions to be addressed in an Initial Regulatory Flexibility
Analysis (IRFA):
1. Which small entities will be impacted most? PC holders and TSO
authorization holders. Should the definition of ``small entity'' be
redefined for purposes of the Regulatory Flexibility Act of 1980 (RFA)?
No.
2. Are all the required elements of an IRFA present, particularly a
description of all compliance requirements, and a clear explanation of
the need for and objectives of the rule? Yes. This Federal Aviation
Administration (FAA) proposed rule would make various changes in
design, production, and identification regulations for products and
parts. These proposed changes include establishing a single set of
quality system requirements applicable to all production approval
holders as well as requiring an airworthiness approval document to be
issued with all products and parts shipments from a production approval
holder. The proposed rule would also revise aircraft parts marking
requirements. For additional information, refer to the Regulatory
Evaluation for a description of all compliance requirements and further
explanations of the need for and objectives of the rule.
3. Have all major cost factors been developed and analyzed? Yes.
Refer to Appendix E for the cost factors for a small entity by type of
production approval.
4. What alternatives will allow the agency to accomplish its
regulatory objectives while minimizing the impact on small entities?
Alternative 1: No Action.
This alternative would have no impact on small entities. The FAA
decided to discard this alternative because it would not enhance
safety. Among other things, the FAA proposes to enhance safety by (1)
establishing a single set of quality system requirements applicable to
all production approval holders, (2) requiring an airworthiness
approval document to be issued with all products and parts shipments
from a production approval holder, and (3) revising aircraft parts
marking requirements.
Alternative 2: Partial Proposed Rule.
The partial proposed rule would be the complete proposed rule with
the exception of the requirement for airworthiness approval tags (Form
8130-3) with all part or product sales/shipments. This requirement is
the most costly proposal for the manufacturers. If this were not
included in the proposed rule, then there would not be a significant
economic impact on a substantial number of small entities.
Alternative 3: Complete Proposed Rule.
The complete proposed rule is more costly for small entities, but
the FAA recommends proceeding with the complete proposed rule instead
of Alternative 2 for several reasons.
The Form 8130-3 is the recognized industry standard
document that provides legal proof that the part was produced by an
FAA-approved source and is airworthy. Use of the Form in this way
parallels what is done in Europe with the EASA Form One.
A common, easily recognizable Form is needed with all new
parts shipments so that the receiver can easily verify the
airworthiness of the part and authority of the producer.
Most non-US aviation agencies demand a completed Form
8130-3 for parts imported into their country. The FAA recommends it for
domestic use also because it makes sense to use a common form for all
shipments, rather than different forms for domestic versus export
shipments.
Legal enforcement for misuse--since the 8130-3 is a
Federal form, misuse of the Form is a Federal offense.
5. Competitiveness Analysis:
This rule is a comprehensive rule that impacts all production
approval holders including PC holders, TSO authorization holders, and
PMA holders. This covers a wide variety of businesses (e.g., balloons,
gliders, helicopters, small airplanes, large transport category
airplanes, engine manufacturers, propeller manufacturers, seat belt
manufacturers, seat manufacturers, and so forth). Market share within
the industry probably would not change due to this proposed regulation,
and the industry itself would not lose market share to other products
or services.
6. Business closure analysis:
The FAA thinks that there would not be any small businesses that
close due to the proposed regulation because there were only about 10
companies that would have costs that exceed one percent of revenues,
more specifically, their costs would be approximately 1.1% of revenues.
The FAA estimates that these costs are not high enough to force
companies into bankruptcy.
7. Disproportionality Analysis:
The table below shows the differences in the impacts on small
businesses as compared to large ones.
----------------------------------------------------------------------------------------------------------------
Discounted Discounted
Small entity Total costs total costs Large entity Total costs total costs
----------------------------------------------------------------------------------------------------------------
Small PCs: Large PCs:
21.9(a)(4)............... $1,600 $917 21.9(a)(4)..... $128,000 $73,387
21.123(e)................ 10,000 5,733 21.123(e)...... 0 0
21.137(h)................ 2,000 1,526 21.137(h)...... 0 0
21.137(m)................ 300 229 21.137(m)...... 0 0
21.137(n)................ 500 381 21.137(n)...... 0 0
21.146(d)................ 1,000,000 573,333 21.146(d)...... 706,667 405,156
--------------------------------- -------------------------------
Subtotal............. 1,014,400 582,120 Subtotal... 834,667 478,542
----------------------------------------------------------------------------------------------------------------
Small TSOAs: Large TSOAs:
21.9(a)(4)............... 375 215 21.9(a)(4)..... 0 0
21.605................... 50 38 21.605......... 0 0
21.616(d)................ 4,500 2,580 21.616(d)...... 3,668,750 2,103,417
45.15(b)................. 85,000 48,733 45.15(b)....... 572,000 327,947
--------------------------------- -------------------------------
Subtotal............. 89,925 51,566 Subtotal... 4,240,750 2,431,364
----------------------------------------------------------------------------------------------------------------
Small PMAs: Large PMAs:
21.9(a)(4)............... 1,250 717 21.9(a)(4)..... 0 0
21.303(a)(5)............. 50 38 21.303(a)(5)... 50 38
[[Page 6971]]
21.307................... 400 305 21.307......... 80 61
21.308................... 400 305 21.308......... 200 153
21.316(d)................ 24,000 13,760 21.316(d)...... 825,000 473,000
--------------------------------- -------------------------------
Subtotal............. 26,100 15,125 Subtotal... 825,330 473,252
----------------------------------------------------------------------------------------------------------------
Large PCs appear to have lower costs on these requirements because
the requirements are already current practice. Large TSOAs and large
PMAs have higher costs on these requirements compared to their
respective smaller entities. The FAA estimates that there would be no
significant change in market share due to this proposed regulation.
Appendix E.--Costs for Small Businesses
[per firm]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Discounted
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Costs total costs
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Small PCs:
21.9(a)(4)........................................................ $160 $160 $160 $160 $160 $160 $160 $160 $160 $160 $1,600 $917
21.123(e)......................................................... 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 10,000 5,733
21.137(h)......................................................... 2,000 ........ ........ ........ ........ ........ ........ ........ ........ ........ 2,000 1,526
21.137(m)......................................................... 300 ........ ........ ........ ........ ........ ........ ........ ........ ........ 300 229
21.137(n)......................................................... 500 ........ ........ ........ ........ ........ ........ ........ ........ ........ 500 381
21.146(d)......................................................... 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,000,000 573,333
-----------------------------------------------------------------------------------------------------------------------------
Subtotal...................................................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 1,014,400 582,120
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Small TSOAs:
21.9(a)(4)........................................................ 38 38 38 38 38 38 38 38 38 38 375 215
21.605............................................................ 50 ........ ........ ........ ........ ........ ........ ........ ........ ........ 50 38
21.616(d)......................................................... 450 450 450 450 450 450 450 450 450 450 4,500 2,580
45.15(b).......................................................... 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 85,000 48,733
-----------------------------------------------------------------------------------------------------------------------------
Subtotal...................................................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 89,925 51,566
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Small PMAs:
21.9(a)(4)........................................................ 125 125 125 125 125 125 125 125 125 125 1,250 717
21.303(a)(5)...................................................... 50 ........ ........ ........ ........ ........ ........ ........ ........ ........ 50 38
21.307............................................................ 400 ........ ........ ........ ........ ........ ........ ........ ........ ........ 400 305
21.308............................................................ 400 ........ ........ ........ ........ ........ ........ ........ ........ ........ 400 305
21.316(d)......................................................... 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 24,000 13,760
-----------------------------------------------------------------------------------------------------------------------------
Subtotal...................................................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 26,100 15,125
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Appendix F.--Economic Impact on a Representative Sample of Small Businesses
----------------------------------------------------------------------------------------------------------------
Revenues (avg Annualized
Production basis Manufacturer State est.) cost of rule Percent
----------------------------------------------------------------------------------------------------------------
PC.......................... AEROSTAR AIRCRAFT CORP. ID............ $15,000,000 $82,881 0.55
PC.......................... AIR TRACTOR, INC....... TX............ 75,000,000 82,881 0.11
PC.......................... AMERICAN CHAMPION WI............ 35,000,000 82,881 0.24
AIRCRAFT CORP.
PC.......................... UNIVAIR AIRCRAFT CORP.. CO............ 7,500,000 82,881 1.11
PC.......................... WILLIAMS INTERNATIONAL. MI............ 75,000,000 82,881 0.11
PMA......................... A&C PRODUCTS, INC...... TX............ 1,750,000 2,153 0.12
PMA......................... ABLE AIR............... CA............ 750,000 2,153 0.29
PMA......................... ACCURATE BUSHING NJ............ 3,750,000 2,153 0.06
COMPANY INC.
PMA......................... ACR ELECTRONICS INC.... FL............ 75,000,000 2,153 0.00
PMA......................... ADVANCED HYPERFINE CA............ 250,000 2,153 0.86
PRODUCTS.
PMA......................... AERO DECALS............ FL............ 750,000 2,153 0.29
PMA......................... AERO SEATS AND SYSTEMS, TX............ 1,750,000 2,153 0.12
INC.
PMA......................... AERO TECHNICAL ALLIANCE FL............ 1,750,000 2,153 0.12
INC.
PMA......................... AERODYNE ENGINEERING... CA............ 250,000 2,153 0.86
PMA......................... AERONCA INC............ OH............ 75,000,000 2,153 0.00
PMA......................... AEROSPACE SYSTEMS. & KS............ 3,750,000 2,153 0.06
COMPONENTS, INC.
PMA......................... AIRBORNE TECHNOLOGIES, CA............ 7,500,000 2,153 0.03
INC.
PMA......................... AIRCRAFT INSTRUMENTS... PA............ 1,750,000 2,153 0.12
PMA......................... AIRCRAFT SPECIALTIES OK............ 3,750,000 2,153 0.06
SERVICES, INC.
PMA......................... AIRWELD, INC........... CA............ 1,750,000 2,153 0.12
PMA......................... AIRWOLF FILTER CORP.... OH............ 1,750,000 2,153 0.12
PMA......................... AMERICAN POLARIZERS, PA............ 3,750,000 2,153 0.06
INC.
PMA......................... AMGLO KEMLITE IL............ 15,000,000 2,153 0.01
LABORATORIES, INC.
PMA......................... APACHE ENTERPRISES..... TX............ 7,500,000 2,153 0.03
PMA......................... AVIATION DEVELOPMENT WA............ 750,000 2,153 0.29
CORP.
[[Page 6972]]
PMA......................... AVION RESEARCH......... CA............ 750,000 2,153 0.29
PMA......................... BIZJET INTERNATIONAL OK............ 15,000,000 2,153 0.01
SALES.
PMA......................... BRAUER AEROSPACE AL............ 3,750,000 2,153 0.06
PRODUCTS, INC.
PMA......................... BREEZE-EASTERN CORP.... NJ............ 72,300,000 2,153 0.00
PMA......................... BRUCE INDUSTRIES, INC.. NV............ 15,000,000 2,153 0.01
PMA......................... CAMARILLO AIRCRAFT CA............ 250,000 2,153 0.86
SERVICE.
PMA......................... CANARD AEROSPACE MN............ 1,750,000 2,153 0.12
CORPORATION.
PMA......................... CEE BAILEY'S AIRCRAFT CA............ 15,000,000 2,153 0.01
PLASTICS.
PMA......................... COLLINS AIRCRAFT TX............ 750,000 2,153 0.29
DYNAMICS, INC.
PMA......................... COMANT INDUSTRIES, INC. CA............ 15,000,000 2,153 0.01
PMA......................... CONAX FLORIDA FL............ 7,500,000 2,153 0.03
CORPORATION.
PMA......................... DAVTRON................ CA............ 3,750,000 2,153 0.06
PMA......................... DER ASSOCIATES INC..... KS............ 250,000 2,153 0.86
PMA......................... DEUTSCH RELAYS, INC.... NY............ 35,000,000 2,153 0.01
PMA......................... DOW-ELCO INC........... CA............ 3,750,000 2,153 0.06
PMA......................... DUSTERS AND SPRAYERS, OK............ 1,750,000 2,153 0.12
INC.
PMA......................... DYNAMIC AIR ENGINEERING CA............ 7,500,000 2,153 0.03
PMA......................... E.J. MLYNARCZYK & CO., FL............ 7,500,000 2,153 0.03
INC.
PMA......................... ELECTRONIC CABLE WI............ 300,000,000 2,153 0.00
SPECIALISTS.
PMA......................... ESSEX INDUSTRIES INC... MO............ 7,500,000 2,153 0.03
PMA......................... FLEXFAB DIVISION....... MI............ 300,000,000 2,153 0.00
PMA......................... FLIGHT DYNAMICS........ OR............ 1,750,000 2,153 0.12
PMA......................... FRANKLIN AIRCRAFT CO............ 1,750,000 2,153 0.12
ENGINES, INC.
PMA......................... HELI-TECH.............. OR............ 1,750,000 2,153 0.12
PMA......................... HYDRAFLOW.............. CA............ 35,000,000 2,153 0.01
PMA......................... INTERNATIONAL AERO INC. WA............ 35,000,000 2,153 0.01
PMA......................... JAY-DEE AIRCRAFT SUPPLY CA............ 3,750,000 2,153 0.06
CO., INC.
PMA......................... JORMAC, INC............ FL............ 1,750,000 2,153 0.12
PMA......................... KEITH PRODUCTS, L.P.... TX............ 15,000,000 2,153 0.01
PMA......................... KING AIRE, INC......... KS............ 250,000 2,153 0.86
PMA......................... LTA AVIATION, INC...... NY............ 250,000 2,153 0.86
PMA......................... MAGNETIC SEAL CORP..... RI............ 7,500,000 2,153 0.03
PMA......................... MED-FLITE OF KS............ 250,000 2,153 0.86
MIDAMERICA, INC.
PMA......................... MILLENNIUM CONCEPTS, KS............ 1,750,000 2,153 0.12
INC.
PMA......................... MILMAN ENGINEERING INC. WA............ 250,000 2,153 0.86
PMA......................... NASERA CORPORATION..... NC............ 1,750,000 2,153 0.12
PMA......................... NORDAM TEXAS........... TX............ 35,000,000 2,153 0.01
PMA......................... NORTHEAST AERO NY............ 3,750,000 2,153 0.06
COMPRESSOR CORP.
PMA......................... OTTO ENGINEERING INC... IL............ 15,000,000 2,153 0.01
PMA......................... PACIFIC PRECISION CA............ 1,750,000 2,153 0.12
PRODUCTS.
PMA......................... PARAVION TECHNOLOGY INC CO............ 7,500,000 2,153 0.03
PMA......................... PETERSON'S PERFORMANCE KS............ 1,750,000 2,153 0.12
PLUS.
PMA......................... PLASTIC MOLDED PRODUCTS WA............ 15,000,000 2,153 0.01
PMA......................... PRECISION PATTERN INC.. KS............ 15,000,000 2,153 0.01
PMA......................... QED, INC............... CA............ 7,500,000 2,153 0.03
PMA......................... RALMARK COMPANY........ PA............ 1,750,000 2,153 0.12
PMA......................... RAY'S AIRCRAFT SERVICE. CA............ 750,000 2,153 0.29
PMA......................... ROTOR DYNAMICS TX............ 250,000 2,153 0.86
AMERICAS, INC.
PMA......................... SAINT GOBAIN WA............ 15,000,000 2,153 0.01
PERFORMANCE PLASTIC.
PMA......................... SEAL DYNAMICS, INC..... NY............ 35,000,000 2,153 0.01
PMA......................... SENSOR SYSTEMS L.L.C... FL............ 35,000,000 2,153 0.01
PMA......................... SKYBOLT AEROMOTIVE CORP FL............ 7,500,000 2,153 0.03
PMA......................... SKYLIGHT AVIONICS CO... CA............ 1,750,000 2,153 0.12
PMA......................... SPECTRUM AEROMED, INC.. MN............ 7,500,000 2,153 0.03
PMA......................... STEIN SEAL............. PA............ 35,000,000 2,153 0.01
PMA......................... STERLING AVIATION WA............ 1,750,000 2,153 0.12
TECHNOLOGIES.
PMA......................... TANIS AIRCRAFT MN............ 750,000 2,153 0.29
SERVICES, INC.
PMA......................... TEXAS AIR STAR, INC.... TX............ 750,000 2,153 0.29
PMA......................... THORNTON TECHNOLOGY CA............ 15,000,000 2,153 0.01
CORP.
PMA......................... UMPCO, INC............. CA............ 15,000,000 2,153 0.01
PMA......................... VALCOR ENGINEERING..... NJ............ 35,000,000 2,153 0.01
PMA......................... VARGA ENTERPRISES, INC. AZ............ 7,500,000 2,153 0.03
PMA......................... WECO AEROSPACE SYSTEMS, CA............ 15,000,000 2,153 0.01
INC.
PMA......................... WENDON COMPANY, INC.... CT............ 7,500,000 2,153 0.03
PMA......................... WINDSOR AIRMOTIVE...... CT............ 15,000,000 2,153 0.01
TSOA........................ AERO TWIN, INCORPORATED AK............ 3,750,000 7,342 0.20
TSOA........................ AIRCRAFT BELTS INC..... TX............ 35,000,000 7,342 0.02
TSOA........................ AIRPATH INSTR. CO...... MO............ 3,750,000 7,342 0.20
TSOA........................ AVIONICS INNOVATIONS... CA............ 750,000 7,342 0.98
TSOA........................ BURL'S AIRCRAFT REBUILD AK............ 1,750,000 7,342 0.42
TSOA........................ CASTLE INDUSTRIES, INC. CA............ 75,000,000 7,342 0.01
[[Page 6973]]
TSOA........................ DIAMOND J , INC........ KS............ 3,750,000 7,342 0.20
TSOA........................ ESSEX INDUSTRIES INC... MO............ 7,500,000 7,342 0.10
TSOA........................ GLOBE MOTORS AL............ 75,000,000 7,342 0.01
INTERNATIONAL
LOGISTICS SUPPORT
CORP. (ILSC).
TSOA........................ ....................... AZ............ 1,750,000 7,342 0.42
TSOA........................ KOLLSMAN INC........... NH............ 750,000 7,342 0.98
TSOA........................ KOSOLA & ASSOCIATES.... GA............ 3,750,000 7,342 0.20
TSOA........................ NORTH AMERICAN NC............ 15,000,000 7,342 0.05
AERODYNAMICS.
TSOA........................ PHAOSTRON INSTRUMENTS & CA............ 15,000,000 7,342 0.05
ELEC. CO.
TSOA........................ R.A. MILLER INDUSTRIES MI............ 15,000,000 7,342 0.05
INC.
TSOA........................ SATCO, INC............. CA............ 75,000,000 7,342 0.01
TSOA........................ SIGMA TEK, INC......... KS............ 35,000,000 7,342 0.02
TSOA........................ SOUTHWEST PRODUCTS CA............ 15,000,000 7,342 0.05
COMPANY.
TSOA........................ VISION MICROSYSTEMS.... WA............ 1,750,000 7,342 0.42
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC on February 8, 2007.
Pamela Hamilton-Powell,
Director, Office of Rulemaking.
[FR Doc. E7-2537 Filed 2-13-07; 8:45 am]
BILLING CODE 4910-13-P
