Re-Registration and Renewal of Aircraft Registration, 10701-10715 [E8-3822]

Agencies

• Federal Aviation Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 73, Number 40 (Thursday, February 28, 2008)]
[Proposed Rules]
[Pages 10701-10715]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3822]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 47

[Docket No. FAA-2008-0188; Notice No. 08-02]
RIN 2120-AI89


Re-Registration and Renewal of Aircraft Registration

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to amend requirements concerning the 
registration of aircraft. This proposal is based on the need to 
increase and maintain the accuracy of aircraft registration information 
in the Civil Aviation Registry. The proposed procedures would ensure 
aircraft owners periodically provide information regarding changes in 
registration. These amendments would respond to the concerns of law 
enforcement and other government agencies and would provide more 
accurate, up-to-date aircraft registration information to all users of 
the Civil Aviation Registry database.

DATES: Send your comments on or before May 28, 2008. Send your comments 
on the proposed information collection requirements on or before May 
28, 2008.

ADDRESSES: You may send comments identified by Docket Number FAA-2008-
0188 using any of the following methods:
     Federal eRulemaking Portal: Go to https://
www.regulations.gov and follow the online instructions for sending your 
comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S. 
Department of Transportation, 1200 New Jersey Avenue, SE., Room W12-
140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Bring comments to Docket 
Operations in

[[Page 10702]]

Room W12-140 of the West Building Ground Floor at 1200 New Jersey 
Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at 202-493-2251.
    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://www.regulations.gov, including any personal information you 
provide. Using the search function of our docket web site, anyone can 
find and read the electronic form of all comments received into any of 
our dockets, including the name of the individual sending the comment 
(or signing the comment for 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://DocketsInfo.dot.gov.
    Docket: To read background documents or comments received, go to 
https://www.regulations.gov at any time and follow the online 
instructions for accessing the docket. Or to the Docket Operations in 
Room W12-140 of the West Building Ground Floor at 1200 New Jersey 
Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: John Bent, Civil Aviation Registry, 
AFS-701, Mike Monroney Aeronautical Center, 6500 South MacArthur 
Boulevard, Oklahoma City, OK 73169; Telephone (405) 954-4331; e-mail 
john.g.bent@faa.gov.

SUPPLEMENTARY INFORMATION: Later in this preamble under the Additional 
Information section, we discuss how you can comment on this proposal 
and how we will handle your comments. Included in this discussion is 
related information about the docket, privacy, and the handling of 
proprietary or confidential business information. We also discuss how 
you can get a copy of this proposal and related rulemaking documents.

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is 
found in Title 49 of the United States Code. Subtitle I, Section 106 
describes the authority of the FAA Administrator. Subtitle VII, 
Aviation Programs, describes in more detail the scope of the agency's 
authority.
    This rulemaking is promulgated under the authority described in 
Subtitle VII, Part A., Subpart III, Chapter 441, Section 44111. Under 
that section, the FAA is charged with prescribing regulations 
considered necessary to carry out this part. In that section, Congress 
mandated the Administrator make modifications in the system for 
registering and recording aircraft necessary to make the system more 
effective in serving the needs of buyers and sellers of aircraft; 
officials responsible for enforcing laws related to the regulation of 
controlled substances and other users of the system. Other users of the 
system include persons charged with maintaining safety in air 
transportation and law enforcement agencies charged with maintaining 
national security. The modifications described in this NPRM include 
measures to ensure positive, verifiable, and timely identification of 
the true owners of aircraft operated in the national airspace system. 
For these reasons, these proposed changes are within the scope of our 
statutory authority and are a necessary and reasonable exercise of that 
authority.

I. Background

    The Civil Aviation Registry (Registry) is responsible for 
developing, maintaining, and operating the national program for the 
registration of United States civil aircraft. In that capacity, the 
Registry's Aircraft Registration Branch maintains records on 
approximately 340,000 aircraft.
    During the 1980s, the use of aircraft in drug smuggling became an 
issue of increasing concern for the U.S. Customs Service, the Drug 
Enforcement Administration, and law enforcement agencies at all levels 
of government. These agencies, seeking quick and accurate 
identification of owners of civil aircraft, advocated an annual 
registration requirement. In 1988, Congress passed the FAA Drug 
Enforcement Assistance Act of 1988 (FAA DEA Act) (partially codified at 
49 U.S.C. 44111), expanding FAA's mission to include providing 
assistance to law enforcement agencies involved in the enforcement of 
laws that regulate controlled substances. In the FAA DEA Act, Congress 
identified specific shortcomings in the system of records, mandated 
specific modifications, and authorized and directed rulemaking to make 
the aircraft registration system more effectively serve the needs of 
buyers and sellers of aircraft, law enforcement officials, and other 
users of the system.
    In response to this mandate, the FAA has made a number of 
administrative modifications to its registration process including 
requiring physical addresses or locations of owners; requiring legible 
printed or typed names on an application for aircraft registration; and 
various technical upgrades to the system of records.
    The FAA also implemented a focused enforcement program under which 
nearly 1,000 Certificates of Aircraft Registration (Certificates) have 
been revoked. This program concentrates on aircraft where a change in 
ownership has occurred, but the last registered owner has failed to 
complete and return the Certificate as required by 14 CFR 47.41(b).
    Notwithstanding administrative modifications to the registration 
system, legal enforcement efforts, the requirement for return of a 
Certificate after any of the events listed in 14 CFR 47.41 and 47.43, 
and the requirement for completion of the Triennial Aircraft 
Registration Report (14 CFR 47.51), the number of aircraft on the 
Registry whose owner can not be positively and verifiably identified in 
a timely manner is increasing.
    In addition to law enforcement need for aircraft registration 
information, user needs for accurate and current aircraft registration 
information have increased, and the many incremental improvements 
attained through automation and administrative changes are not 
sufficient to respond to those needs. While aircraft registration 
information is still used to support the delivery of airworthiness 
directives and other traditional safety-related uses, the information 
is increasingly relied upon for newer programs, such as flight plan 
verification.
    While various levels of law enforcement have used and continue to 
use registration data for drug and other law enforcement purposes, 
their efforts now have expanded to include matters of homeland 
security. To achieve a level of registration data reliability to meet 
current and evolving needs of users, modifications to the aircraft 
registration system must be made to ensure that only eligible aircraft 
remain on the Registry and that aircraft registration changes are 
reported within established intervals.
    Over the past several decades, the FAA has used several methods in 
an effort to maintain the accuracy of information on aircraft 
registration. From March 1970 through January 1978, Certificate holders 
were required to file an annual report to keep the aircraft Registry 
updated and limited to only those aircraft eligible for registration. 
The requirement for the annual report was withdrawn in 1978, when the 
Registry was reasonably current and was expected to remain current 
through

[[Page 10703]]

contact with aircraft owners over the ordinary course of business. The 
amendment withdrawing this requirement noted that a reporting 
requirement might need to be instituted for aircraft registrants from 
whom no information was received within a reasonable period of time. 
(43 FR 3900, Jan. 30, 1978)
    This anticipation was fulfilled two years later on April 30, 1980, 
when Amendment 47-21 added 14 CFR 47.51 establishing the Triennial 
Aircraft Registration Report (Triennial). This regulation requires the 
holder of a Certificate to send, in response to a request from the FAA 
Aircraft Registry, a report on an aircraft when three years have passed 
without certain aircraft registration activities having taken place. 
Paragraph (d) of this section provides for the suspension or revocation 
of a Certificate when there is a refusal or failure to send the report. 
Unfortunately, the Triennial has not proven effective in maintaining 
the accuracy and currency of the aircraft registration database. For 
example, while the Registry can determine from mail returned as 
undeliverable that certain aircraft registration addresses are out of 
date, we are unable to make a determination regarding how many 
Triennials are delivered to a registered owner's (former) address of 
record and are simply discarded by the current occupant. Efforts to 
improve the effectiveness of the Triennial through enforcement have 
proven to be expensive, time-consuming, and ineffective.
    Modern technology has allowed registration data to be used in 
increasingly sophisticated ways. An example of a technologically 
enabled proactive program needing accurate data is an initiative 
developed by FAA Strategic Operations Security with the Transportation 
Security Administration. See 70 FR 73323, December 9, 2005. This 
program uses aircraft registration status, along with other 
information, as a basis for granting or denying aircraft access to the 
national airspace system. An aircraft seeking to operate in U.S. 
airspace will have its identification checked. If the information found 
is sufficiently inconsistent with the profile of a properly registered 
aircraft, a pilot deviation will be filed on the operator, and the 
operator may be denied access to the national airspace. This program 
and others like it operate in real time and draw their information 
directly from Registry databases. The events of September 11, 2001, and 
our continuing war on terrorism have created additional motivation to 
develop every resource that can be used by government agencies seeking 
to ensure the day-to-day safety of our nation.
    To minimize the chance of disruptions for aircraft operators and 
effectively meet the needs of all users of the aircraft registration 
system and its data, the FAA has determined that the Aircraft Registry 
needs to confirm the status of questionable aircraft registrations and 
ensure the registry data is maintained at the highest reasonable level 
of accuracy.
    How accurate are the records today? Since the annual registration 
eligibility requirement ended in 1978, many aircraft have left service, 
been sold, or had owners who moved without reporting their change of 
status or address. Of the more than 343,000 aircraft registered, an 
estimated 104,000, or about one-third, are possibly no longer eligible 
for registration. Over the last several years:
     17,000 aircraft have been reported as sold by their former 
owners without the purchasers making application for registration (with 
about 15,900 being in the ``sale-reported'' category for more than 6 
months);
     4,700 have started registration without completing the 
requirements (with about 2,100 being in the ``registration-pending'' 
category for more than 12 months);
     About 30,100 aircraft are known to have bad addresses well 
beyond the 30 days allowed for reporting changes;
     Almost 14,700 aircraft have had their Certificates revoked 
due to bad addresses, but remain in the system to prevent reassignment 
of their U.S. registration number (N-Number) until the FAA is positive 
the aircraft is no longer operating with that N-Number; and
     Up to 41,000 additional unidentified aircraft are 
estimated to be inactive or possibly no longer eligible for 
registration.
    In addition to increased accuracy, removing ineligible aircraft 
from the Registry would eliminate a large pool of questionable N-
Numbers. As mentioned above, the FAA, in concert with TSA, is 
evaluating flight plan filings to determine if an aircraft has the 
proper profile for operation in the national air space. It is 
advantageous to a drug trafficker or a terrorist to use an airplane 
with a registered N-number as these airplanes would be subject to less 
scrutiny. Revoking these registrations using 14 CFR part 13 enforcement 
procedures is slow, expensive, adversarial, and does not cancel the 
assignment of the N-number.
    With almost one-third of the aircraft on the register having a 
questionable registration status, it is clear that the needed accuracy 
and currency of aircraft registration data cannot be met with the 
present system of indefinite-duration Certificates that relies 
primarily on aircraft owners to report address changes, aircraft sales, 
aircraft destruction, or loss of registration eligibility. The FAA 
believes that limiting the duration of a Certificate would be the most 
effective method of increasing the accuracy of its records. Thus, the 
FAA, seeking to meet current and future needs, proposes in this NPRM:
     The expiration of all Certificates for currently 
registered aircraft with re-registration requirements for those 
aircraft that remain eligible for registration;
     The periodic expiration of all Certificates issued after 
the effective date of the proposed rule with a registration renewal 
process;
     Elimination of the present Triennial Aircraft Registration 
Report program in its entirety;
     Limits on the time an aircraft may remain in the sale 
reported category (without an application being made for registration) 
before its N-Number assignment is canceled;
     Limits on the time an applicant or successive applicants 
for registration have to complete the registration process and 
provisions for reserving the aircraft's N-Number if the aircraft is not 
registered at the end of this time; and,
     Cancellation of the N-number of an aircraft registered 
under a Dealer's Aircraft Registration Certificate (Dealer's 
Certificate), if the Dealer's Certificate has expired and application 
for registration has not been made under Sec.  47.31.
    Under this proposal, aircraft owners desiring to maintain 
registration would have to re-register their aircraft within a 
specified time period. Re-registered aircraft would receive a 
Certificate with an expiration date, as would all new Certificates 
issued after the date of the rule. Thereafter, the Certificate would 
expire three years from the date of issuance, but would be renewable 
for successive three-year terms upon completion and submission of a 
brief renewal request form and payment of the applicable fee. A 
registered aircraft owner would have to promptly file re-registration 
and renewal actions. Since temporary operating authority (``pink 
copy'') under 14 CFR 47.31(b) would not be available for renewal 
purposes, no transfer of ownership would have taken place. Upon 
completion of processing by FAA, the renewed Certificate with a new 
expiration date would be mailed to the registered owner

[[Page 10704]]

at the address indicated on the renewal form.
    Under 14 CFR 47.17, we currently charge $5.00 for obtaining a 
certificate of aircraft registration and would charge the same amount 
for a renewal registration under this proposal. However, the FAA is 
pursuing fairer, more cost-based funding for the future. One of the 
FAA's goals for its pending reauthorization is to match FAA funding 
more closely with the costs of providing services. Current FAA funding 
does not align with FAA's costs to provide services, and the current 
aircraft registration fee, which has been $5.00 since the mid-1960's, 
is an example of this disconnect. To move the FAA to a more cost-based 
organization, the Administration's proposal for FAA reauthorization, 
sent to Congress in February 2007, includes language that addresses 
registration and certification fees across the board. The House of 
Representatives adopted much of the Administration's proposal for these 
fees in H.R. 2881, which passed the House in September 2007. Once the 
outcome of the reauthorization legislation is known, the FAA will 
decide whether additional action is necessary through either further 
legislation or rulemaking.
    This notice also includes several non-substantive, technical 
amendments to establish consistency and conform the regulations to 
statute or current Registry practices.

General Discussion of the Proposals

Aircraft Re-Registration and Periodic Renewal of Registration

    The term ``re-registration'' as used in this document refers to the 
process for obtaining new Certificates for aircraft that were 
registered before the effective date of the rule and, therefore have a 
Certificate without an expiration date. The term ``renewal,'' when 
referring to aircraft registration, refers to periodic registration 
required for any aircraft that has a Certificate with an expiration 
date (i.e., a Certificate issued after the effective date of the rule).
    Currently, a Certificate does not expire. However, a Certificate 
may have been invalid from inception (see Sec.  47.43) or become 
ineffective upon the occurrence of any of the events specified in Sec.  
47.41(a). The Certificate, with the reverse side completed, must be 
returned to the FAA Aircraft Registry after the sale of the aircraft or 
the occurrence of any other event specified in Sec.  47.41. If the 
holder complies and returns the Certificate, the aircraft records can 
then be updated. However, the Registry is frequently not notified of a 
change affecting registration and consequently, the aircraft 
registration records may not reflect accurate registration information. 
If, for some reason, the Certificate were not available for return, 
proposed Sec.  47.41(b) would require the last registered owner to send 
a statement to the Registry explaining why the Certificate is not 
available.
    Timely and adequate notice of ownership changes is the 
responsibility of the parties involved. The seller is responsible for 
returning the Certificate to the FAA with the reverse side completed. 
The new owner is responsible for filing an Aircraft Registration 
Application (Application) and evidence of ownership in compliance with 
part 47, if the owner intends to operate the aircraft.
    Inaccurate records have many negative consequences. For example, 
FAA uses aircraft records to identify owners of specific aircraft, so 
that safety related information such as airworthiness directives, can 
be delivered to those owners. Because of inaccurate information, many 
safety related mailings are returned without delivery. Aircraft 
manufacturers also use aircraft records for similar reasons. Law 
enforcement and security agencies rely upon FAA's aircraft records to 
identify owners of aircraft, but in many cases they are unable to do so 
within a reasonable timeframe and with an acceptable level of 
confidence. Out-of-date registration information may possibly result in 
loss of property, and if safety related information is not received, 
could result in personal injury. The FAA has concluded, as noted 
earlier, that the level of accuracy in the system of records must be 
significantly improved to better serve the needs of the users of the 
system.
    The FAA is proposing a 3-year renewal interval. The 3-year interval 
is based in part on its experience with the Triennial program (this 
program will be discussed in more detail later). With a 3-year renewal, 
the owner would bear the responsibility of meeting the renewal 
requirements as well as the consequences for failing to meet those 
requirements. This stands in contrast to the current situation in which 
a registered owner's failure to comply with regulatory requirements 
generally has no immediate consequences for that owner.
    Presently about 35% of registered aircraft are operating on 
potentially ineffective registrations, because the Registry has not 
been notified of registration changes. With the implementation of the 
proposed 3-year renewal, according to the analysis provided in the 
preliminary Regulatory Evaluation (a copy of which has been placed in 
the docket for this rulemaking), we estimate that the inaccuracy rate 
would drop to about 5.6% of the 240,000 aircraft expected to remain on 
the register. By comparison, a 5-year renewal interval would likely 
result in an error rate of about 12.5%, and a 7-year renewal interval 
would result in an error rate of about 21.8%. Even under the 3-year 
renewal interval, avoiding data degradation due to registration 
information changes would depend upon aircraft owners reporting all 
changes in a timely manner.
    Under proposed Sec.  47.40(a), any aircraft registered before the 
effective date of the rule would have to be re-registered over a 3-year 
period. Re-registration would provide updated aircraft registration 
information and result in the issuance of a Certificate of Aircraft 
Registration with an expiration date three years after the last day of 
the month in which the certificate is issued. An example of a schedule 
for re-registration with sample dates is provided in proposed section 
Sec.  47.40, to illustrate that aircraft registered in a given month 
would be required to re-register in a specific 3-month period. Because 
the aircraft could not be legally operated beyond the end of the 3-
month period, the application and registration fee should be filed for 
re-registration in a timely manner within the specific time period 
identified. The pink slip may not be used as temporary authority to 
operate an aircraft that is being re-registered. The FAA recommends 
application be made at least 45 days before the end of the 3-month 
period. This scheduling, as shown by these sample dates, is necessary 
to manage the Registry's workload during the re-registration period. 
The actual dates for re-registration would be established upon 
publication of the final rule, and the schedule shown in proposed 
section Sec.  47.40 would be changed accordingly.
    As mentioned in the previous paragraph, if re-registration were not 
accomplished, the Certificate would expire. Thereafter, the N-number 
assigned to the aircraft would be administratively cancelled no earlier 
than 30 days following the end of the specific period of time given for 
re-registration. Proposed Sec.  47.15(i), described below, would 
provide for the cancellation of the N-number assignment for aircraft 
that do not accomplish re-registration within the specific timeframes.
    Re-registration would have the most dramatic effect on the Aircraft 
Registry, eliminating as many as 104,000 aircraft that are likely no 
longer eligible for registration. This would be an enormous improvement 
in the accuracy of the

[[Page 10705]]

aircraft registration database. However, to maintain the necessary 
level of accuracy, re-registration needs to be followed by periodic 
renewal. The FAA believes that a 3-year renewal interval would be the 
best choice.
    Proposed Sec.  47.40(b) would establish a 3-year expiration for 
initial Aircraft Registration Certificates issued after the effective 
date of the rule. The expiration date would be three years from the 
last day of the month in which they are issued.
    Approximately 120 days before the expiration date on a Certificate, 
the Registry would notify the aircraft owner at the address on the 
registration of the impending expiration and provide the Aircraft 
Registration Renewal form. The registrant would either mail in the 
Aircraft Registration Renewal form and a renewal fee, or if there were 
no change in registration information, file the completed form and pay 
the fee electronically through the Registry's Web site.
    Under proposed Sec.  47.40(c), an applicant for renewal should 
apply 90 days in advance of the expiration date on the Certificate of 
Aircraft Registration to allow for receipt of the new certificate 
before expiration of the old one. A renewal certificate will expire 
three years after the expiration date of the previous certificate.
    A first Certificate of Aircraft Registration issued on or after 
(effective date of final rule) expires three years from the last day of 
the month in which the certificate is issued. Subsequent Certificates 
of Aircraft Registration, issued upon compliance with the renewal 
requirement, will expire three years after the expiration date of the 
previous certificate. For example, an aircraft first registered on June 
15, 2010, would receive a certificate with an expiration date of June 
30, 2013. When first renewed, the renewal certificate would have an 
expiration date of June 30, 2016. Future renewal registration 
certificates would have expiration dates of June 30, 2019, then 2022, 
and so on, even if the Aircraft Registration Renewal is filed, 
processed, and the certificate is issued well before the current 
expiration date.
    If the aircraft was not re-registered within the timeframes 
identified in the schedule or the expiration date on the Certificate 
has passed, the Certificate would expire. Although the Registry would 
issue a reminder notice, even in the absence of such notice, the 
applicant would be responsible for taking action in a timely manner to 
obtain a new Certificate before the expiration date. An expired 
Certificate could not be used for operation after the expiration date 
on the certificate. Since retention of an N-number is contingent upon 
maintenance of an unexpired registration certificate, the registration 
number assigned to the aircraft would be administratively cancelled no 
earlier than 30 days following the expiration of the certificate.
    Proposed Sec.  47.41(a) clarifies that a Certificate is no longer 
valid once it has expired, and proposed Sec.  47.15(i), described 
below, would provide for cancellation of the N-number assignment should 
the renewal of aircraft registration not be accomplished. Information 
regarding re-registration and renewal of aircraft registration would be 
posted on the Registry's Web site and also provided for media 
publication.
    Benefits of re-registration and renewal of aircraft registration 
would reach every user of the Aircraft Registry database. The FAA would 
realize cost savings when mailing airworthiness directives, conducting 
surveys of aircraft owners, and accomplishing other necessary contacts 
with aircraft owners. Aircraft manufacturers would realize similar cost 
savings when mailing safety notices. The above mailings would 
potentially reach more aircraft owners, and mailing cost would be 
reduced by not sending mailings to owners and operators of inactive 
aircraft that would no longer be carried on the Registry. With more 
owners receiving this information, fewer would be at risk to experience 
safety issues. Vendors who send out useful information regarding 
aircraft products would benefit from more accurate aircraft 
registration information, as would the owners who would receive that 
information.

Triennial Aircraft Registration Report

    In an effort to maintain accurate information, existing Sec.  47.51 
requires an owner of a registered aircraft with no registration 
activity for the past 36 months to complete and send to the Registry a 
Triennial Aircraft Registration Report, AC Form 8050-73 (Triennial). If 
there has been a change in registered owner information, such as a 
change in current name, address, aircraft identification, or 
citizenship status, the returned form must reflect that change. The 
form is also used to report the sale, destruction, or other disposition 
of aircraft. We have gained experience and insight from the problems 
associated with the Triennial program. From the large number of 
Triennials that are returned as undeliverable, we have a count of known 
aircraft registrations with bad addresses. This count is not indicative 
of all such records, since some owners neglect to report an address 
change or leave a forwarding address. A new occupant who resides at the 
owner's former address may dispose of the mailing, viewing it as junk 
mail. As there are no current enforcement or follow-up actions, there 
is nothing to compel the owner to complete and return the Triennial.
    The 70,000 Triennial report notices sent annually to Certificate 
holders typically prompt 9,000 address changes and identify 5,000 
aircraft with undeliverable addresses. There are also an undetermined 
number of notices that reach registered owners who choose not to report 
their aircraft's sale or destruction. Apart from the approximately 
104,000 aircraft FAA projects as not eligible for registration, at any 
point in time at least 11.5% of the estimated 240,000 active aircraft 
on the register reflect inaccurate registration information. Because 
bad address returns and non-responses would result in the cancellation 
of an aircraft's registration under this proposal, this number should 
drop to the approximately 5.6% error rate cited earlier.
    The FAA proposes to remove Sec.  47.51 and eliminate the 
requirement for aircraft owners to complete and return a Triennial 
Aircraft Registration Report, AC Form 8050-73. The proposed re-
registration and renewal requirements would supersede and eliminate the 
need for the information obtained via the Triennial. The removal of the 
paperwork burden associated with the Triennial would help to offset 
that associated with the 3-year renewal requirement. A description of 
the paperwork burden associated with this NPRM appears later in this 
document.

Sale Reported and Registration Pending

    There are currently about 17,000 aircraft (out of over 340,000) 
whose status is ``sale reported.'' Of these, about 15,900 have been in 
the ``sale reported'' category for more than 6 months, according to the 
preliminary Regulatory Evaluation. In these cases, FAA has received 
notice of a sale from the last registered owner, but no Application has 
been filed, and the aircraft has not been registered to the new owner. 
Historically, there have been approximately 17,000 ``sale reported'' 
aircraft at any given time. Many of the aircraft that were originally 
placed in this short-term category have remained there for more than 
two decades. This is due, in part, to Registry requirements that 
information effecting changes in aircraft registration come from 
authoritative sources who may not be available or willing to provide 
the

[[Page 10706]]

information necessary to clarify the record. Almost 4,700 additional 
aircraft are in ``registration pending,'' which means the FAA has 
received evidence of ownership change and an Application, but due to 
various reasons is not able to complete the registration of the 
aircraft. Of these, about 2,100 have been in the ``registration 
pending'' category for more than 12 months. Under these circumstances, 
neither security and law enforcement agencies, nor the FAA, may be able 
to locate the owner.
    Currently Sec.  47.41(b) requires the last registered owner to 
endorse the reverse of the Certificate and send it to the Registry 
after the sale of an aircraft or other event specified in Sec.  47.41. 
Not only is the return of a Certificate important for maintaining 
current records, it is in the owner's best interest to declare his 
relinquishment of responsibility for the aircraft's operation after a 
sale or other event resulting in termination of registration. If the 
Certificate is not available, proposed Sec.  47.41(b) would require the 
last registered owner to send a statement to the Registry as to why the 
Certificate is not available.
    Based on our aircraft registration experience, the FAA considers 
six months in ``sale reported'' and 12 months in ``registration 
pending'' as the maximum reasonable time an aircraft should remain in 
these transitional categories. Proposed Sec.  47.15(i) provides that 
when these time limits are exceeded, the FAA may cancel assignment of 
N-numbers. Although these two categories are distinct, an aircraft may 
be ``sale reported'' for some period and change to ``registration 
pending'' upon the submission of an Application. Thus, under the FAA 
proposal, there is the possibility of an aircraft remaining in these 
short-term transitional categories for up to 18 months.
    Under this proposed rule, the FAA estimates that the numbers of 
aircraft in the ``sale reported'' and ``registration pending'' 
categories would decrease from their current levels of approximately 
17,000 and 4,700, respectively. The FAA anticipates that after the 
effective date of this final rule, the number of aircraft in both 
categories would not go to zero, as new aircraft would be coming into 
the inventory on a daily basis. Thus, as this rulemaking would 
eliminate aircraft in the ``sale reported'' category with records 
greater than 6 months old and in the ``registration pending'' category 
with records greater than 12 months, the FAA expects the numbers of 
aircraft in these categories to decrease to about 1,300 and 2,500, 
respectively.

Temporary Authority To Operate an Aircraft

    Title 49 U.S.C. 44101(b)(3) provides that an aircraft may be 
operated without registration for a reasonable period of time after a 
transfer of ownership. Existing Sec.  47.31(b) does not limit the time 
a duplicate (pink) copy of the Application together with an approved 
extension may be used to operate an aircraft. The FAA has determined 
that 12 months is a reasonable period of time to accomplish 
registration following a transfer of ownership. Proposed Sec.  
47.31(b)(2) would establish 12 months as the maximum time that the pink 
copy of the Application, including any subsequently issued extensions, 
may be used as temporary authority to operate the aircraft after 
ownership has transferred, and registration requirements have not been 
met. If the owner has not registered the aircraft within the 12-month 
timeframe, the aircraft would not be eligible for operation. Proposed 
Sec.  47.31(b)(3) would clarify that temporary authority may not be 
used to operate the aircraft if there is no N-number assigned to the 
aircraft at the time application for registration is made. It is the 
responsibility of a prudent aircraft purchaser to establish whether the 
temporary authority to operate an aircraft is available prior to 
operation. It should be noted that expiration of a Certificate does not 
involve a transfer of ownership; therefore, pink copy operating 
authority would not be available.

Aircraft Registration

    Proposed Sec.  47.41(a) would be revised to specify that a 
Certificate is effective until a specified event has occurred, such as 
registration being revoked, cancelled, expired, or the ownership of the 
aircraft is transferred. Registration has always ended upon revocation, 
cancellation, or change of ownership. The term ``expired'' would be 
added to include those registrations that have not been re-registered 
under proposed Sec.  47.40(a), following the date established in 
proposed Sec.  47.40(a)(2), and those registrations issued after the 
date of the final rule that have passed their expiration dates and have 
not renewed in accordance with proposed Sec.  47.40(c). At the point 
registration is no longer valid, the assignment of registration number 
would be cancelled in accordance with proposed Sec.  47.15(i). Since it 
has not been the practice to suspend an aircraft registration, the term 
``suspended'' would be removed from existing Sec.  47.41(a). Existing 
Sec.  47.41(a)(4) would be removed since reference to change of 
ownership would be incorporated into the introductory text.
    Proposed Sec.  47.39 would clarify that an aircraft is registered 
on the date that the Registry determines that the requirements of part 
47 have been met. The effective date of registration is shown by a date 
stamp on the Application and as the date of issuance on the 
Certificate. This would clarify that registration is not effective as 
of the date the Application and supporting documentation are received 
at the Registry.

Dealer's Aircraft Registration

    Existing Sec.  47.61(b) states that a Dealer's Aircraft 
Registration Certificate (Dealer's Certificate) is an alternative for 
the Certificate and may be used for any aircraft properly registered 
under that Dealer's Certificate. If an aircraft owned by a dealer is 
registered under the Dealer's Certificate, and that Dealer's 
Certificate expires, the registration of the aircraft is no longer 
valid. Proposed Sec.  47.61(c) would add a requirement for those 
aircraft registered under a Dealer's Certificate that has expired. If 
an application for registration were not made under existing Sec.  
47.31, the assignment of an N-number to any aircraft registered under 
that expired Dealer's Certificate would be cancelled. This is reflected 
in proposed Sec. Sec.  47.41(a) and 47.15(i). Before canceling the N-
number, the Registry would provide written notice to the holder of the 
Dealer's Certificate to advise of the pending cancellation.
    Existing Sec.  47.67 states that if a dealer is not a manufacturer, 
the holder of the Certificate must send evidence that he is the owner 
to the Registry before an aircraft can be operated under a Dealer's 
Certificate. Proposed Sec.  47.67 would clarify that the dealer must 
provide evidence of ownership sufficient under existing Sec.  47.11.

Assignment of Aircraft Registration Numbers (N-Numbers)

    Under the Convention on International Civil Aviation (Chicago 
Convention), 61 Stat. 1180, ``Every aircraft engaged in international 
air navigation shall bear its appropriate nationality and registration 
marks.'' The United States complies with this requirement by issuing N-
numbers to all registered aircraft, whether the aircraft are used for 
international or domestic flights. N-numbers must be placed on aircraft 
in compliance with 14 CFR part 45. The procedures for requesting and 
obtaining numbers are covered in 14 CFR part 47.
    Existing Sec.  47.15 requires an applicant for registration to 
place a ``U.S.

[[Page 10707]]

identification number (registration mark)'' on the application and on 
all supporting documents. All newly manufactured aircraft are assigned 
N-numbers; all aircraft previously registered in a foreign country that 
are being registered in the U.S. are assigned N-numbers. If a U.S.-
registered aircraft is sold within the United States, the aircraft 
retains its N-number unless the new owner requests a new number.
    Existing Sec.  47.15(a) requires for an aircraft last previously 
registered in the United States, that the applicant place the N-number 
that is already assigned to the aircraft on the Application and 
supporting evidence, provided the aircraft was registered at the time 
ownership was transferred. If an aircraft was last previously 
registered in the United States, but registration was terminated or 
ended (e.g., at the request of the owner, destroyed/scrapped, exported, 
etc.), there is no assigned N-number. Proposed Sec.  47.15(a) would 
describe the procedure to acquire an N-number assignment.
    Under existing Sec. Sec.  47.15(f) and 47.17, the Registry assigns 
a special registration number upon request and payment of a $10.00 fee. 
A special registration number may be reserved for use at a later time. 
A number may also be reserved indefinitely by paying $10.00 annually.
    Existing Sec.  47.15(f) would be revised to specify the time within 
which a Certificate holder must place a special registration number on 
the aircraft after the Registry has authorized the number change. If 
not used, the authorization for a number change would expire one year 
from the date of issuance. Currently, the owner must notify the 
Registry within five days after placing the special registration number 
on the aircraft. The temporary authority to operate the aircraft with 
the special registration number would be valid only until receipt of a 
revised Certificate showing the new number, but not for more than 120 
days from the date the number is placed on the aircraft. Frequently, 
the owner does not send the completed Assignment of Special 
Registration Numbers to the Registry in a timely fashion as required. 
The proposed change would place the responsibility on the registered 
owner to ensure that the completed Assignment of Special Registration 
Numbers is filed in a timely manner to ensure a revised Certificate can 
be received within 120 days.
    Proposed Sec.  47.15(i) would clarify that an N-number is valid for 
operation only as long as the registration of the aircraft has not 
ended. The N-number would no longer be authorized for use when an 
aircraft is sold and not registered within stated time limits; a 
Certificate expires; a Certificate holder has not re-registered the 
aircraft under the re-registration requirements; or an aircraft is 
registered under a Dealer's Certificate that has expired, and 
application for registration has not been made under existing Sec.  
47.31. This proposal would limit the time an aircraft's registration 
status may remain in the transitional period following transfer of 
ownership. The Registry would cancel the assignment of an N-number if 
the Registry receives notice of sale, and no Application is received 
within six months (sale reported). The N-number would be cancelled if 
more than 12 months have passed since a new owner has provided evidence 
of ownership from the last registered owner and an Application, but the 
requirements of this part have not been met (registration pending). The 
N-number would be administratively cancelled at the expiration of an 
appropriate interval following termination of registration. At the time 
an aircraft meets the criteria to end registration, the last owner of 
record would be provided reasonable, advance notice that the N-number 
would be cancelled and given the opportunity to reserve the number 
prior to its being placed in an unavailable status.
    Proposed Sec.  47.15(j) would be added to clarify that if the last 
owner of record desires to reserve the N-number, the request for 
reservation and fee must be filed before cancellation. At the time of 
cancellation, the Registry database also allows for the process of 
reserving the N-number. If a request to reserve the N-number and fee 
were not received before cancellation, the number would be unavailable 
for use for a period of five years. After the 5-year period, that 
number would be available. The anticipated cancellation of the 
estimated 104,000 N-numbers assigned to inactive aircraft would 
eventually free those numbers for reservation or assignment.

Technical Amendments

    In addition to the changes we are adopting to implement the 
rulemaking, discussed above, we are also adopting a number of non-
substantive changes to 14 CFR part 47. These technical amendments are 
primarily editorial in nature and are intended for clarification.
    Proposed Sec.  47.2 would add the new definition of ``Registry'' to 
identify the FAA, Civil Aviation Registry, Aircraft Registration 
Branch. The definitions of U.S. citizen ``partnership'' and 
``corporation'' would be revised to be identical with those found in 49 
U.S.C. 40102(a)(15). Proposed Sec.  47.7(d) would also be revised to 
clarify that a partnership may apply for registration only if each 
partner is an individual citizen of the United States.
    To ensure that signers' names can be clearly determined from the 
application record, proposed Sec.  47.13(a) now would specify that the 
name of each signer on an Application be typed or legibly printed in 
the signature block. Notice of this administrative change was published 
March 23, 2004, in the Federal Register (69 FR 13614). Proposed Sec.  
47.13(a) also would clarify that a signature on an Application or a 
document filed as supporting evidence under this part must be in ink. 
The requirement for a request for cancellation of a Certificate to be 
signed in ink would be removed since the Registry does accept such 
requests by facsimile.
    The requirements for instruments made by representatives and 
signature requirements are identical not only for an Application and a 
request for cancellation of a Certificate, but also for any document 
filed as supporting evidence. Proposed Sec.  47.13, paragraphs (b), 
(c), (d), (e), and (f), would include any document filed as supporting 
evidence under this part.
    A continuing concern for law enforcement is the use by a person 
registering an aircraft of a post office box or ``mail drop'' as a 
return address for the purpose of evading identification of the 
registered owner's address. Proposed Sec.  47.45 would require that an 
applicant applying for a revised Certificate due to a change of 
address, provide a physical address or location when a post office box 
or ``mail drop'' is used for mailing purposes. This conforms to 
longstanding practice. Notice of this procedure was published October 
20, 1994, in the Federal Register (19 FR 53013).
    Proposed Sec.  47.45 would require that an applicant applying for a 
revised Certificate due to a change of address comply with the same 
requirement.
    Proposed Sec.  47.49 would clarify that if a Certificate is lost, 
stolen, or mutilated, a written request is required stating the reason 
a replacement certificate is needed. It would also inform that the 
Registry issues a temporary Certificate by fax.

Paperwork Reduction Act

    This proposal contains the following new information collection 
requirements. As required by the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)), the FAA has submitted the information requirements 
associated with this proposal to the Office of Management and Budget 
for its review.
    Title: Aircraft Registration Renewal.

[[Page 10708]]

    Summary: The FAA proposes to amend 14 CFR part 47, requiring 
aircraft registration be renewed 36 months after the issuance of the 
Certificate and each three years, thereafter, as long as ownership is 
not transferred. Information from the Aircraft Registration Renewal 
form would be used to update registration information in the Registry's 
database.
    Use: This information collection supports the Department of 
Transportation's strategic goals on safety and security. The 
information collected will be necessary to obtain a renewal of aircraft 
registration.
    Title 49, U.S.C. Section 44101(a) provides that a person may 
operate an aircraft only when it is registered under section 44013.
    Currently aircraft registration does not expire. Under this 
proposal, each Certificate issued after adoption of the final rule 
would have a 3-year expiration date. If registration is to continue, 
each aircraft owner must apply for renewal by completing and filing an 
Aircraft Registration Renewal form at least 90 days before the 
expiration date on the Certificate. The aircraft owner would verify the 
existing registration information and report any changes. The Registry 
will use the information to update aircraft ownership information and 
place the form in the aircraft record. This proposal would support the 
informational needs of the Registry's database and all users of the 
database, including law enforcement and security agencies.
    Respondents: The likely respondents to this proposed information 
requirement are all aircraft owners who want to continue registration 
past the expiration date on their Certificate. The FAA estimates the 
number of registration renewals would be 64,489 annually; however, the 
number of aircraft owners and the signature requirements for each 
aircraft vary depending upon the registration type (e.g., individual, 
partnership, government, or co-ownership).
    Frequency: The FAA estimates that there would be 64,489 
registration forms completed annually over the 20-year period examined 
by this proposed rule. This is based on the current estimate of 239,049 
active registered aircraft and an annual average increase of 3,347 
aircraft (to account for projected growth), as well as subsequent 
registration actions over this time period. The former number of 
aircraft would have to re-register, while the latter aircraft would 
have to register for the first time. After these initial registrations 
and re-registrations, aircraft would have to renew these registrations 
every three years. In addition, each year, a percentage of aircraft 
would renew earlier than their required 3-year schedule due to the 
normal course of business actions, such as an aircraft being sold and a 
new certificate being issued to the new owner/applicant. Over 20 years, 
the FAA estimates 1,289,786 forms would need to be completed, which 
averages 64,489 per year. The time to complete the single page Aircraft 
Registration Renewal form is estimated at 30 minutes. Therefore, 
32,244.5 hours would be spent annually completing the required form. As 
described in the preliminary Regulatory Evaluation, the FAA estimates 
the hourly rate of an aircraft owner's time at $37.20 in 2005 dollars, 
so half an hour would equate to $18.60 per owner per form. Thus, the 
average cost per year equals $599,747.70 (32,244.5 hours times $18.60 
per hour).
    The proposed re-registration requirement would also increase the 
paperwork burden associated with the existing Aircraft Registration 
Application collection (OMB No. 2120-0042).
    Annual Burden Estimate: Over 20 years, the FAA estimates 1,289,786 
forms would need to be processed. Of these forms, 188,379 would be for 
re-registration and 1,101,407 would be for renewal. As described in the 
preliminary Regulatory Evaluation, the FAA estimates processing costs 
of $12.32 and $9.26, respectively, per form. Over 20 years, these costs 
sum to $12,519,856.52 (calculation: 188,379 times $12.32 plus 1,101,407 
times $9.26), for an annual cost of $625,992.83 (calculation: 
$12,519,856.52 divided by 20). The FAA estimates that it will take 
0.391 hours to process each re-registration form and 0.320 hours to 
process each renewal form. This difference comes from FAA's assumption 
that the time needed for certain tasks in the renewal process would be 
less than in the re-registration process, as these tasks would be done 
on-line, eliminating the need for paper to be processed. Over 20 years, 
the time to process all the re-registration and the renewals forms 
equals 73,656.19 hours and 352,450.19 hours, respectively, for a total 
burden of 426,106.37 hours, and an average annual burden of 21,305.32 
hours.
    The agency is soliciting comments to--
    (1) Evaluate whether the proposed information requirement is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Individuals and organizations may send comments on the information 
collection requirement by May 28, 2008, and should direct them to the 
address listed in the ADDRESSES section at the end of this preamble. 
Comments also should be sent to the Office of Management and Budget, 
Office of Information and Regulatory Affairs, Attention: Desk Officer 
for FAA, New Executive Building, Room 10202, 725 17th Street, NW., 
Washington, DC 20053.
    According to the 1995 amendments to the Paperwork Reduction Act (5 
CFR 1320.8(b)(2)(vi)), an agency may not collect or sponsor the 
collection of information, nor may it impose an information collection 
requirement unless it displays a currently valid OMB control number. 
The OMB control number for this information collection will be 
published in the Federal Register, after the Office of Management and 
Budget approves it.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to comply with 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these proposed regulations.

II. Regulatory Evaluation, Regulatory Flexibility Determination, 
International Trade Impact Assessment, and Unfunded Mandates Assessment

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 directs that each Federal agency 
shall propose or adopt a regulation only upon a reasoned determination 
that the benefits of the intended regulation justify its costs. Second, 
the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) requires 
agencies to analyze the economic impact of regulatory changes on small 
entities. Third, the Trade Agreements Act (Pub. L. 96-39) prohibits 
agencies from setting standards that create

[[Page 10709]]

unnecessary obstacles to the foreign commerce of the United States. In 
developing U.S. standards, this Trade Act requires agencies to consider 
international standards and, where appropriate, that they be the basis 
of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4) requires agencies to prepare a written assessment of 
the costs, benefits, and other effects of proposed or final rules that 
include a Federal mandate likely to result in the expenditure by State, 
local, or tribal governments, in the aggregate, or by the private 
sector, of $100 million or more annually (adjusted for inflation with 
base year of 1995). This portion of the preamble summarizes the FAA's 
analysis of the economic impacts of this proposed rule. We suggest 
readers seeking greater detail read the preliminary Regulatory 
Evaluation, a copy of which we have placed in the docket for this 
rulemaking.
    In conducting these analyses, FAA has determined that this proposed 
rule: (1) Has benefits that justify its costs, (2) is not an 
economically ``significant regulatory action'' as defined in section 
3(f) of Executive Order 12866, (3) is ``significant'' as defined in 
DOT's Regulatory Policies and Procedures; (4) would not have a 
significant economic impact on a substantial number of small entities; 
(5) would not create unnecessary obstacles to the foreign commerce of 
the United States; and (6) would not impose an unfunded mandate on 
State, local, or tribal governments, or on the private sector by 
exceeding the threshold identified above. These analyses are summarized 
below.

Total Costs and Benefits of This Rulemaking

    This proposed rule would mandate that all aircraft owners re-
register their aircraft over a 3 year period, and then renew these 
registrations on a 3 year basis. Total estimated costs, over 20 years, 
range from $30.53 million ($16.50 million, discounted) to $33.03 
million ($17.38 million, discounted). These costs include both the 
costs to aircraft owners as well as processing costs for the Civil 
Aircraft Registry and include costs savings from the proposed 
elimination of the Triennial Program.
    The primary benefit of this rulemaking would be the increased 
accuracy of the records within the Aircraft Registry. Currently, over 
one third of registered aircraft information is incorrect. The FAA has 
concluded that the level of accuracy in the system of records must be 
significantly improved in order to better serve the needs of the users 
of the system as well as support its own operations. Benefits would 
accrue from improving the database as well as improving the data 
collection process.

Who Is Potentially Affected by This Rulemaking

Private Sector

    There are currently about 343,000 registered aircraft, of which 
about 239,000 are active aircraft. The FAA expects about 239,000 
aircraft to re-register and then, every 3 years, renew their 
certificate. The FAA also expects between an additional 1,400 to 3,450 
new aircraft to register each year.

Government

    This proposal would increase the workload on the Civil Aviation 
Registry, which would have to process an additional 1.22 million to 
1.29 million renewal and registration certificates over a 20-year 
period. However, this additional work would be partially offset by the 
proposed elimination of the Triennial Aircraft Registration Program.

Our Cost Assumptions and Sources of Information

     Discount rate--7%;
     Period of analysis--2007 through 2026;
     All monetary values are expressed in 2005 dollars;
     The FAA based projections on two different annual growth 
rates for aircraft--1.4% and 0.6%.
     The FAA uses the following unit costs:
    (a) $5--cost per aircraft for both re-registration and renewal
    (b) $37.20--hourly rate of an aircraft owner's time
    (c) $12.32--FAA processing costs for re-registration per applicant
    (d) $9.26--FAA processing costs for renewal per applicant
    (e) $2.06--FAA processing costs for the Triennial Program for each 
notice sent
    (f) $16.80--FAA processing costs for the Triennial Program per 
reply
    (g) The FAA based projections on two different annual growth rates 
for aircraft--1.4% and 0.6%.
    A provision in the FAA Financing Reform Proposal would, if enacted, 
increase the re-registration and renewal fee to $45, based on direct 
and allocable indirect unit costs of the FAA Registry's Aircraft 
Registration Branch and an allowance for FAA Headquarters' overhead. 
This fee differs from the costs used in this analysis for the re-
registration and renewal fee ($5), FAA processing costs for re-
registration per applicant ($12.32), and FAA processing costs for 
renewal per applicant ($9.26). An explanation reconciling these cost 
differences can be found in the Addendum to the Initial Regulatory 
Analysis, which can be found in the docket for this rulemaking.

Benefits of This Rulemaking

    The primary benefit of this rulemaking would be the increased 
accuracy of the records within the Aircraft Registry. Currently, over 
one third of registered aircraft information is incorrect. Inaccurate 
records have many negative consequences. For example, FAA uses aircraft 
records to identify owners of specific aircraft so that safety related 
information, such as airworthiness directives (ADs), can be delivered 
to those owners, but because of inaccuracies, many safety-related 
mailings are returned without delivery. Aircraft manufacturers also use 
aircraft records for the same reasons, to send out safety-related 
information. Law enforcement and security agencies rely upon FAA's 
aircraft records to identify and locate owners of aircraft.
    The FAA has concluded that the level of accuracy in the system of 
records must be significantly improved in order to better serve the 
needs of the users of the system as well as support its own operations. 
Specifically, benefits would accrue from improving the database as well 
as improving the data collection process. The benefits from improving 
the Registry database include cost savings, better service for aircraft 
owners, and help with law enforcement. The benefits to be realized by 
improving the data collection process also include cost savings as well 
as a more accurate response rate.

Costs of This Rulemaking

    This rulemaking proposes that all aircraft owners would have to re-
register their aircraft during a 3-year period under guidelines to be 
published, that all aircraft registrations would need to be renewed 
every 3 years, and that the present Triennial Program would be 
eliminated in its entirety.
    The FAA estimates that approximately 239,000 aircraft would each go 
through the proposed re-registration process, and so would be issued a 
new registration certificate, each with an expiration date, over the 
first three years of this rulemaking; it is this expiration date, with 
the subsequent renewals, that is at the heart of this rulemaking and 
would help to improve the Registry's records. An aircraft could also 
receive a new certificate through the normal course of business (NCB) 
renewal process. For instance, if an aircraft was re-registered

[[Page 10710]]

according to the schedule and was then sold at a later date, the 
certificate issued after the sale would be an NCB transaction and not a 
transaction from the re-registration schedule. In such a case, its 3-
year clock would start anew. Over this 3-year period, approximately 
188,400 of these 239,000 aircraft would be re-registered due to the re-
registration requirement and 50,700 would receive their re-registration 
certificate during NCB. However, there would be additional registration 
activity during this time period, as the FAA assumes a range for the 
annual growth in the number of aircraft needing to register of about 
1,400 to about 3,350. As a result, the FAA projects that 243,400 to 
249,100 aircraft would either be re-registered or initially registered 
over the first 3 years of this proposal. As a result of re-
registration, 79%, or about 188,400, of the 239,000 aircraft would be 
re-registered due to the re-registration requirement, and 21%, or 
50,700, would receive their re-registration certificates during NCB.
    Following aircraft certificate re-registration would be their 
renewal every 3 years. In calculating the costs of renewal, the FAA 
counts the number of aircraft transactions that result in a new 
certificate due both to an NCB action as well as the number of aircraft 
certificates issued due to the rulemaking-mandated renewal program. In 
addition, as in the first three years, the FAA assumes an increase in 
the number of aircraft needing to register, reflecting the annual 
growth in the number of aircraft.
    The FAA estimates that the Registry would process from 1.22 million 
to 1.29 million certificate actions over 20 years. However, the 
Registry would achieve cost savings with the elimination of the 
Triennial Program. Over 20 years, the proposal to replace the current 
system with a 3-year re-registration program, followed by a 3-year 
renewal cycle would cost from $30.53 million ($16.50 million, 
discounted) to $33.03 million ($17.38 million, discounted).
    The FAA examined two other scenarios including 5 and 7 year renewal 
cycles with the Triennial Program eliminated. While these scenarios had 
lower costs, their much higher expected error rates would more than 
offset any advantage that these lower costs would bring, leading to 
doubts as to the accuracy and usefulness of the Registry's database.

Initial Regulatory Flexibility Determination

    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