Repair Stations, 49158-49163 [2016-17612]

Download as PDF 49158 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Rules and Regulations (h) Credit for Previous Actions This paragraph provides credit for actions required by paragraph (g) of this AD, if those actions were performed before the effective date of this AD using the following service information, as applicable. This service information is not incorporated by reference in this AD. (1) Bombardier Service Bulletin 700– 1A11–52–021, dated November 9, 2012. (2) Bombardier Service Bulletin 700–52– 044, dated November 9, 2012. (3) Bombardier Service Bulletin 700–52– 5008, dated November 9, 2012. (4) Bombardier Service Bulletin 700–52– 6008, dated November 9, 2012. (i) Other FAA AD Provisions The following provisions also apply to this AD: (1) Alternative Methods of Compliance (AMOCs): The Manager, New York Aircraft Certification Office (ACO), ANE–170, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the ACO, send it to ATTN: Program Manager, Continuing Operational Safety, FAA, New York ACO, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516–228–7300; fax 516–794–5531. Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/ certificate holding district office. The AMOC approval letter must specifically reference this AD. (2) Contacting the Manufacturer: For any requirement in this AD to obtain corrective actions from a manufacturer, the action must be accomplished using a method approved by the Manager, New York ACO, ANE–170, FAA; or Transport Canada Civil Aviation (TCCA); or Bombardier, Inc.’s TCCA Design Approval Organization (DAO). If approved by the DAO, the approval must include the DAO-authorized signature. ehiers on DSK5VPTVN1PROD with RULES (j) Related Information Refer to Mandatory Continuing Airworthiness Information (MCAI) Canadian Airworthiness Directive CF–2015–03, dated March 26, 2015, for related information. This MCAI may be found in the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA– 2015–8435. (k) Material Incorporated by Reference (1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. (2) You must use this service information as applicable to do the actions required by this AD, unless this AD specifies otherwise. (i) Bombardier Service Bulletin 700–1A11– 52–021, Revision 01, dated February 3, 2015. (ii) Bombardier Service Bulletin 700–52– 044, Revision 01, dated February 3, 2015. (iii) Bombardier Service Bulletin 700–52– 5008, Revision 01, dated February 3, 2015. VerDate Sep<11>2014 15:11 Jul 26, 2016 Jkt 238001 (iv) Bombardier Service Bulletin 700–52– 6008, Revision 01, dated February 3, 2015. (3) For service information identified in ˆ this AD, contact Bombardier, Inc., 400 Cote´ Vertu Road West, Dorval, Quebec H4S 1Y9, Canada; telephone 514–855–5000; fax 514– 855–7401; email thd.crj@aero.bombardier.com; Internet http:// www.bombardier.com. (4) You may view this service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the availability of this material at the FAA, call 425–227–1221. (5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: http:// www.archives.gov/federal-register/cfr/ibrlocations.html. Issued in Renton, Washington, on July 19, 2016. Michael Kaszycki, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 2016–17538 Filed 7–26–16; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 145 [Docket No.: FAA–2016–8744; Amdt. No. 145–31] RIN 2120–AK86 Repair Stations Federal Aviation Administration (FAA), DOT. ACTION: Interim final rule. AGENCY: The Federal Aviation Administration (FAA) is revising its repair station rules to remove the requirement that a repair station with an airframe rating provide suitable permanent housing to enclose the largest type and model aircraft listed on its operations specifications. The FAA is also revising its general housing and facilities regulation to provide that a repair station’s housing for its facilities, equipment, materials, and personnel must be consistent not only with its ratings, but also with its limitations to those ratings. Finally, the FAA is adding an additional general purpose limited rating to cover maintenance work not covered by the existing 12 limited rating categories. These changes are necessary because the existing ratings and housing rules impose unnecessary housing requirements on certain repair stations that work only on component parts of an aircraft. These changes will enable SUMMARY: PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 some repair stations to obtain a limited rating that is tailored to their intended scope of work, and will relieve repair stations that have a limited airframe rating, but that work only on component parts of an aircraft, from having to provide large and expensive housing to enclose the entire aircraft when that type of housing is not needed for the limited scope of their work. DATES: Effective July 27, 2016. Submit comments on or before August 26, 2016. ADDRESSES: Send comments identified by docket number FAA–2016–8744 using any of the following methods: • Federal eRulemaking Portal: Go to http://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 (DOT), 1200 New Jersey Avenue SE., Room W12–140, West Building Ground Floor, Washington, DC 20590–0001. • Hand Delivery or Courier: Take comments to 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. • Fax: Fax comments to Docket Operations at 202–493–2251. Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to www.regulations.gov, as described in the system of records notice (DOT/ALL– 14 FDMS), which can be reviewed at www.dot.gov/privacy. Docket: Background documents or comments received may be read at http://www.regulations.gov at any time. Follow the online instructions for accessing the docket or 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: For technical questions concerning this action, contact Susan Traugott Ludwig, Aircraft Maintenance Division, Repair Station Branch, AFS–340, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone (214) 587–8887; email susan.traugott.ludwig@ faa.gov. SUPPLEMENTARY INFORMATION: E:\FR\FM\27JYR1.SGM 27JYR1 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Rules and Regulations Good Cause for Final Adoption Section 553(b)(3)(B) of the Administrative Procedures Act (APA) (5 U.S.C.) authorizes agencies to dispense with notice and comment procedures for rules when the agency for ‘‘good cause’’ finds that those procedures are ‘‘impracticable, unnecessary, or contrary to the public interest.’’ Under this section, an agency, upon finding good cause, may issue an interim final rule without seeking comment prior to the rulemaking. The FAA finds that notice and public comment to this interim final rule are unnecessary and contrary to the public interest. The provisions in this interim final rule will remove restrictive housing language affecting repair stations that hold limited airframe ratings and perform maintenance on airframe component parts rather than the entire aircraft. This rule will also amend the limited ratings section by adding a rating that will provide certificate holders and applicants with an additional option for defining the work they actually intend to perform. The removal of the restrictive housing language and adding an additional limited rating will not adversely affect current and future certificate holders. Regarding the restrictive housing language, this change is also consistent with how this regulation has been applied in practice. In addition, the removal of the restrictive language and adding an additional limited rating will not have a negative safety impact. The language is adopted to relieve economic burdens on the repair station industry and the possibility of forced repair station closings if the amended language were to be applied literally. Therefore, the FAA has determined that notice and public comment prior to publication are unnecessary. In addition, in accordance with 5 U.S.C. 553(d)(1), the FAA is making this interim final rule effective upon publication because it is a substantive rule that relieves a restriction. ehiers on DSK5VPTVN1PROD with RULES Comments Invited The Regulatory Policies and Procedures of the Department of Transportation (DOT), (44 FR 1134; February 26, 1979), provide that to the maximum extent possible, operating administrations for the DOT should provide an opportunity for public comment on regulations issued without prior notice. Although the FAA is inviting comments, we have made the determination to adopt this interim final rule without prior notice and public comment due to the need to expedite a resolution for repair stations that VerDate Sep<11>2014 15:11 Jul 26, 2016 Jkt 238001 perform maintenance on airframe component parts by removing the restrictive housing requirement and providing an additional limited rating as another option. 49159 The FAA’s rules provide for two categories of repair station ratings that define and govern which articles 1 repair stations may work on under the part 145 regulations. These are class ratings (provided for in § 145.59) and limited ratings (provided for in § 145.61). Class ratings are broadly defined, and generally cover all articles listed in the category. Under § 145.61, however, the ‘‘FAA may issue a limited rating to a repair station that maintains or alters only a particular type of airframe, powerplant, propeller, radio, instrument, or accessory, or part thereof.’’ Section 145.61(b) provides that the FAA may issue limited ratings for 12 categories of aircraft articles. These are: (1) Airframes of a particular make and model; (2) Engines of a particular make and model; (3) Propellers of a particular make and model; (4) Instruments of a particular make and model; (5) Radio equipment of a particular make and model; (6) Accessories of a particular make and model; (7) Landing gear components; (8) Floats, by make; (9) Nondestructive inspection, testing, and processing; (10) Emergency equipment; (11) Rotor blades, by make and model; and (12) Aircraft fabric work. Prior to 2001, § 145.33(b) 2 listed 13 categories for which the FAA issued limited ratings. The last of these (the 13th category) covered ‘‘Any other purpose for which the Administrator finds the applicant’s request is appropriate.’’ In the 2001 amendments, the FAA, among other things, removed the 13th category of limited ratings. Now, as before 2001, if an applicant for a repair station certificate did not want a full class rating, but wanted to work only on a particular component or component parts of an aircraft, the applicant would seek a limited rating. After that amendment became effective in 2003, if the component part or parts listed in the application were not airframe components and did not fit in one of the other 11 limited rating categories, the agency often issued a limited airframe rating anyway with the make and model of the aircraft listed on the operations specifications, and the scope of work pertaining to the component parts requested, included as a limitation. In most of these cases, the FAA did not consider the requirements in § 145.103(b) that airframe-rated repair stations must provide housing to enclose the entire aircraft because the scope of the requested work did not require the entire aircraft to be enclosed. In many cases, the issuance of these ratings ran afoul of the agency’s repair station housing and facilities regulations because many airframe-rated repair stations performing only component part maintenance did not provide housing that could enclose the entire aircraft listed on their operations specifications. Although these categories of repair stations could easily meet the requirements of § 145.103(a)(1) (which requires housing for the facilities, equipment, materials, and personnel consistent with the repair station’s ratings) if their work was limited to working only on component parts, many did not meet the requirements of § 145.103(b). To answer the question whether the term ‘‘airframe rating’’ as used in § 145.103(b) contemplates a limited airframe rating, in March 2015, the FAA’s Office of the 1 Ref. 14 CFR 145.3, ‘‘Article’’ means aircraft, airframe, aircraft engine, propeller, appliance, or component part. 2 The FAA amended part 145 in 2001 (66 FR 41088, August 6, 2001). The new rules became effective on April 6, 2003. Authority for This Rulemaking The FAA’s authority to issue rules on 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, Section 44701, General requirements, and section 44707, Examining and rating air agencies. Under section 44701, the FAA may prescribe equipment and facilities for, and the timing and manner of, inspecting, servicing, and overhauling of aircraft, aircraft engines, propellers, appliances and constituent parts thereof. Under section 44707, the FAA may examine and rate repair stations. This regulation is within the scope of section 44701 since it specifies the facilities required, and the regulation is within the scope of 44707 since it specifies the ratings that are held by the repair stations. I. Background Statement of the Problem PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\27JYR1.SGM 27JYR1 49160 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Rules and Regulations ehiers on DSK5VPTVN1PROD with RULES Chief Counsel issued a legal interpretation concluding that a limited airframe rating is an airframe rating as the term is used in that regulation.3 The interpretation essentially stated that an airframe-rated repair station, whether limited airframe or class airframe-rated, must obtain the housing as required in § 145.103(b). Prior to the March 2015 interpretation, some FAA offices that issued limited airframe ratings for component parts work interpreted the term airframe rating in § 145.103(b) to refer only to a class airframe rating. Thus, in those cases, the issue of requiring housing to enclose the largest aircraft on the repair station’s operations specifications was never addressed. According to that reasoning, a class rating as described in § 145.59(a) would require housing large enough to enclose the entire aircraft, but a limited airframe rating provided as described in § 145.61(b)(1) would not.4 Consequently, if an applicant sought only a limited airframe rating for a component part(s), those FAA offices did not believe § 145.103(b) applied to those situations. Currently, many repair stations hold a limited airframe rating and do not have housing to enclose the largest type and model aircraft listed on their operations specifications. As one consequence of the above-referenced legal interpretation, some repair stations that perform maintenance on component parts only, and hold a limited airframe rating, are being advised by their local FAA offices to either obtain costly housing to enclose the largest type and model aircraft on their operations specifications, or to seek an exemption from the housing requirement. This has created an economic burden on these repair stations and a potential resource 3 FAA legal interpretation to Finazzo (March 4, 2015) concluded that 14 CFR 145.103(b) requires a repair station with a limited airframe rating to have housing large enough to enclose the largest aircraft listed on its operations specifications. The opinion stated that ‘‘nothing in the regulatory history or plain language of the regulation supports a conclusion that the airframe rating of section § 145.103(b) applies only to class ratings and excludes limited airframe ratings.’’ See Docket No. FAA–2016–8744. 4 This, despite that § 145.61(b)(1) provides for a limited airframe rating for a ‘‘particular make and model’’ aircraft. An example could be a limited airframe rating for a Boeing Model 737 aircraft that would allow a repair station to perform maintenance on only that model aircraft and no others. In that case, the holder of that limited rating would be required to provide housing to enclose that entire aircraft. It would be an anomalous result if the holder of a class airframe rating with a Boeing 737 aircraft listed on its operations specifications were required to house the entire aircraft, but the holder of a limited airframe rating for the same aircraft were not. VerDate Sep<11>2014 15:11 Jul 26, 2016 Jkt 238001 burden on the FAA to process a likely flood of petitions for exemption. II. Overview of Interim Final Rule To remedy the situations whereby some limited airframe-rated repair stations are not in full compliance with the housing regulation, and where, in some cases, the scope of work being performed does not technically fit within the airframe rating, this interim final rule will remove the one-size-fitsall requirement of current § 145.103(b) and provide an additional limited rating category to cover work not addressed by the existing 12 categories. These actions will assist the repair station industry by eliminating the costly housing requirement that is not necessary in many cases. In place of that housing regulation, we are adding two amendments that will address and resolve this issue. First, the FAA is adding ‘‘and limitations’’ to the housing and facilities requirements in § 145.103(a)(1). With this change, the housing for a repair station’s facilities, equipment, materials, and personnel must be consistent not only with its ratings, but also with the limitations to those ratings. Adding ‘‘limitations’’ to this regulation will assist both the repair stations and the FAA in determining a repair station’s housing needs by considering the limitations associated with the rating under review. For example, a repair station with a limited powerplant rating may list a certain make and model of powerplant under its limited rating, but intend to maintain or repair only specified component parts of the engine, such as blade or vane repairs. The repair station would only need to provide housing, equipment, materials, and personnel to perform maintenance on blades and vanes if it does not perform work on the entire engine. Second, the FAA is adding the 13th limited rating category under § 145.61(b) that was removed in the 2001 final rule. The new limited rating will allow the FAA to issue a limited rating for any other purpose for which it finds the applicant’s request is appropriate. The additional limited rating is intended to be issued for repair stations that wish to perform maintenance on items such as aircraft interiors, upholstering, serving carts, cabinets, unit load devices, and other component items that do not necessarily fit into one of the 12 existing limited ratings. This action provides future certificate holders another option for ratings that will better define the type of maintenance they wish to perform. It will reduce the number of limited airframe ratings issued for component part work for which an PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 airframe rating is not needed. In some cases, existing repair stations that hold limited airframe ratings issued for items that do not fit the category may amend their rating to the newly restored 13th limited rating, but such amendments are not required. If, however, an existing airframe-rated repair station wishes to add a non-airframe component to its operations specifications or capabilities list, it would have to apply for a limited rating in one of the other 12 categories, as appropriate. III. Discussion of Interim Final Rule In order to remedy the abovedescribed problems caused by the restrictive housing requirements of § 145.103(b), the FAA is removing the text in its entirety. Removing existing § 145.103(b) provides flexibility to certificate holders and applicants with regard to the type of housing they are required to provide. Current § 145.103(c) provides that a certificated repair station may perform maintenance on articles outside of its housing if it provides suitable facilities that meet the general housing and facilities requirements of § 145.103(a) so that the work can be done in accordance with 14 CFR part 43. This paragraph is renumbered as § 145.103(b). Although the requirement to enclose the largest type and model aircraft is no longer required, suitable housing as identified in §§ 145.101 and 145.103(a) remains applicable for all repair stations, regardless of whether they hold class or limited ratings. Section 145.101 requires, generally, that each certificated repair station ‘‘must provide housing, facilities, equipment, materials, and data that meet the applicable requirements for the issuance of the certificate and ratings the repair station holds.’’ Therefore, the FAA must evaluate each repair station application to assure that the housing and other requirements appropriate to the rating sought are met. In order to meet the requirements of §§ 145.101 and 145.103(a), repair stations that intend to work on an entire aircraft, or large portions of it, would still be required to provide housing that ensures appropriate protection from environmental elements for the work being performed. The FAA is removing the introductory phrase of § 145.205(d) (‘‘Notwithstanding the housing requirement of § 145.103(b)’’) because the referenced section is being withdrawn by this rulemaking. As a result of that withdrawal, part 145 will no longer contain a specific housing regulation requiring an entire aircraft to be enclosed—rather the general E:\FR\FM\27JYR1.SGM 27JYR1 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Rules and Regulations requirements of §§ 145.101 and 145.103 will require housing and other protections appropriate for the work performed. Newly renumbered § 145.103(b) (formerly § 145.103(c)) permits repair stations (including those authorized to perform line maintenance under § 145.205(d)) to perform maintenance outside of its housing so long as they provide suitable facilities to adequately protect the work and personnel. Although new § 145.103(b) will still require a repair station to provide suitable facilities if the repair station works outside of its housing, the intent remains that those repair stations authorized to perform line maintenance at airport locations on the ramp outside of housing should ensure, to the extent practicable, that the work is protected from adverse elements in accordance with §§ 145.101 and 145.103. In addition, the FAA is adding the phrase ‘‘and limitations’’ to the end of paragraph (1) of § 145.103(a). The section will now require that each certificated repair station must provide: ‘‘(1) Housing for the facilities, equipment, materials, and personnel consistent with its ratings and limitations.’’ With this change, if a repair station’s scope of work is limited to work that does not require the size and type of housing that the rating without the limitation would require, the repair station would need to provide housing only sufficient to accommodate its limited scope of work. Finally, this interim final rule adds a limited rating to § 145.61(b) that allows the FAA to issue limited ratings for any other purpose for which it finds the applicant’s request is appropriate. This new rating provides applicants and existing certificate holders another option for ratings that will better define the type of maintenance they wish to perform, whether it be on component parts of an airframe, powerplant, propeller, or on any other article in the class ratings identified in § 145.59. Without this additional rating category, many repair stations could continue to be issued a limited airframe rating as a catch all rating, which does not always clearly identify the actual type of work being performed. ehiers on DSK5VPTVN1PROD with RULES IV. Regulatory Notices and Analyses A. Regulatory Evaluation Changes to Federal regulations must undergo several economic analyses. First, Executive Order 12866 and Executive Order 13563 direct 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. VerDate Sep<11>2014 15:11 Jul 26, 2016 Jkt 238001 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 unnecessary obstacles to the foreign commerce of the United States. In developing U.S. standards, the 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 interim final rule. Department of Transportation Order DOT 2100.5 prescribes policies and procedures for simplification, analysis, and review of regulations. If the expected cost impact is so minimal that a proposed or final rule does not warrant a full evaluation, this order permits that a statement to that effect and the basis for it to be included in the preamble if a full regulatory evaluation of the cost and benefits is not prepared. Such a determination has been made for this rule. The reasoning for this determination follows. Currently, § 145.103(b) states that a certificated repair station with an airframe rating must provide suitable permanent housing to enclose the largest type and model of aircraft listed on its operations specifications. This requirement is problematic for airframe rated repair stations that perform maintenance only on component parts and not the entire aircraft. Airframerated repair stations that do not provide the housing because they do not need it for their scope of work need to petition for an exemption from it. This rule will remove § 145.103(b) and retain the general housing and facilities requirements in §§ 145.101 and 145.103(a) and (c), which specify that each repair station must provide suitable housing consistent with its ratings. Thus this rule will remove an unnecessary burden for airframe-rated repair stations, and the costs would be minimal, as it is relieving in nature. The FAA’s review of past exemption requests prompted by the existing requirement in § 145.103(b) showed that PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 49161 from 2004 to the present, the agency processed 15 petitions for exemption. The FAA estimates that, on average, a petitioner spends 20 hours to prepare a petition for exemption from § 145.103(b), and the FAA takes 50 hours to process each of those petitions. According to data from the Bureau of Labor Statistics, in 2016 the mean hourly wage with benefits is $41.38 for a mechanic and supervisor. The average hourly wage for a J band FAA employee in Washington DC is $58.00. Over a twelve-year period at today’s wages, the estimated savings equals 15 exemptions multiplied by 20 hours per exemption multiplied by $41.38 per hour, plus 15 exemptions multiplied by 50 hours per exemption multiplied by $58.00 per hour, which equals $56,000, or approximately $4,700 annually. This is a minimal cost; therefore, under Department of Transportation Order DOT 2100.5, the agency is not required to prepare a full regulatory evaluation. The FAA has, therefore, determined that this rule is not a ‘‘significant regulatory action’’ as defined in section 3(f) of Executive Order 12866, and is not ‘‘significant’’ as defined in DOT’s Regulatory Policies and Procedures. B. Regulatory Flexibility Determination The Regulatory Flexibility Act of 1980 (Pub. L. 96–354) (RFA) establishes ‘‘as a principle of regulatory issuance that agencies shall endeavor, consistent with the objectives of the rule and of applicable statutes, to fit regulatory and informational requirements to the scale of the businesses, organizations, and governmental jurisdictions subject to regulation.’’ To achieve this principle, agencies are required to solicit and consider flexible regulatory proposals and to explain the rationale for their actions to assure that such proposals are given serious consideration. The RFA covers a wide-range of small entities, including small businesses, not-forprofit organizations, and small governmental jurisdictions. Agencies must perform a review to determine whether a rule will have a significant economic impact on a substantial number of small entities. If the agency determines that it will, the agency must prepare a regulatory flexibility analysis as described in the RFA. However, if an agency determines that a 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 E:\FR\FM\27JYR1.SGM 27JYR1 49162 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Rules and Regulations ehiers on DSK5VPTVN1PROD with RULES factual basis for this determination, and the reasoning should be clear. Many repair stations are small entities. Future business decisions to provide repair of aircraft components can be negatively impacted if the existing housing rule for airframe-rated repair stations remains in place. Currently each airframe-rated repair station must provide suitable permanent housing to enclose the largest type and model of aircraft listed on its operations specifications. For those airframe-rated repair stations that provide component maintenance only, and not full aircraft maintenance, the requirement to provide permanent housing for the aircraft would be very expensive and counterproductive. Most of the petitions for exemption from § 145.103(b) are from repair stations that do not work on an entire aircraft. This rule removes § 145.103(b) so that all repair stations will need to provide only the housing necessary to conduct their repair business. Thus this rule will be relieving in nature and be a benefit to small entities, albeit a small benefit. While the rule will impact a substantial number of small entities, it will not impose a significant economic impact on them. If an agency determines that a rulemaking will not result in a significant economic impact on a substantial number of small entities, the head of the agency may so certify under section 605(b) of the RFA. Therefore, as provided in section 605(b), the head of the FAA certifies that this rulemaking will not result in a significant economic impact on a substantial number of small entities. C. International Trade Impact Assessment The Trade Agreements Act of 1979 (Pub. L. 96–39), as amended by the Uruguay Round Agreements Act (Pub. L. 103–465), prohibits Federal agencies from establishing standards or engaging in related activities that create unnecessary obstacles to the foreign commerce of the United States. Pursuant to these Acts, the establishment of standards is not considered an unnecessary obstacle to the foreign commerce of the United States, so long as the standard has a legitimate domestic objective, such as the protection of safety, and does not operate in a manner that excludes imports that meet this objective. The statute also requires consideration of international standards and, where appropriate, that they be the basis for U.S. standards. The FAA has assessed the potential effect of this rule and determined that it offers the same VerDate Sep<11>2014 15:11 Jul 26, 2016 Jkt 238001 relieving impact on affected international repair stations. D. Unfunded Mandates Assessment Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4) requires each Federal agency to prepare a written statement assessing the effects of any Federal mandate in a proposed or final agency rule that may result in an expenditure of $100 million or more (in 1995 dollars) in any one year by State, local, and tribal governments, in the aggregate, or by the private sector; such a mandate is deemed to be a ‘‘significant regulatory action.’’ The FAA currently uses an inflation-adjusted value of $155 million in lieu of $100 million. This rule does not contain such a mandate; therefore, the requirements of Title II of the Act do not apply. E. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires that the FAA consider the impact of paperwork and other information collection burdens imposed on the public. The FAA has determined that there is no new requirement for information collection associated with this interim final rule. F. International Compatibility and Cooperation In keeping with U.S. obligations under the Convention on International Civil Aviation, it is FAA policy to conform to 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. Harmonization. This rulemaking will not be involved in harmonization with any foreign aviation authorities. Federalism. The agency determined that this action will not have a substantial direct effect on the States, or the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government, and, therefore, does not have Federalism implications. B. Executive Order 13211, Regulations That Significantly Affect Energy Supply, Distribution, or Use The FAA analyzed this interim final rule under Executive Order 13211, Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use (May 18, 2001). The agency has determined that it is not a ‘‘significant energy action’’ under the executive order and it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. C. Executive Order 13609, International Cooperation Executive Order 13609, Promoting International Regulatory Cooperation, (77 FR 26413, May 4, 2012) promotes international regulatory cooperation to meet shared challenges involving health, safety, labor, security, environmental, and other issues and to reduce, eliminate, or prevent unnecessary differences in regulatory requirements. The FAA has analyzed this action under the policies and agency responsibilities of Executive Order 13609, and has determined that this action would have no effect on international regulatory cooperation. VI. How To Obtain Additional Information V. Executive Order Determinations A. Rulemaking Documents An electronic copy of a rulemaking document may be obtained by using the Internet— 1. Search the Federal eRulemaking Portal (http://www.regulations.gov); 2. Visit the FAA’s Regulations and Policies Web page at http:// www.faa.gov/regulations_policies/ or 3. Access the Government Printing Office’s Web page at: http:// www.gpo.gov/fdsys/. Copies may also be obtained by sending a request (identified by notice, amendment, or docket number of this rulemaking) to the Federal Aviation Administration, Office of Rulemaking, ARM–1, 800 Independence Avenue SW., Washington, DC 20591, or by calling (202) 267–9680. A. Executive Order 13132, Federalism The FAA has analyzed this interim final rule under the principles and criteria of Executive Order 13132, B. Comments Submitted to the Docket Comments received may be viewed by going to http://www.regulations.gov and following the online instructions to G. Environmental Analysis FAA Order 1050.1F identifies FAA actions that are categorically excluded from preparation of an environmental assessment or environmental impact statement under the National Environmental Policy Act in the absence of extraordinary circumstances. The FAA has determined this rulemaking action qualifies for the categorical exclusion identified in paragraph 5–6.6 and involves no extraordinary circumstances. PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\27JYR1.SGM 27JYR1 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Rules and Regulations search the docket number for this action. Anyone is able to search the electronic form of all comments received into any of the FAA’s dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). C. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996 requires FAA to comply with small entity requests for information or advice about compliance with statutes and regulations within its jurisdiction. A small entity with questions regarding this document, may contact its local FAA official, or the person listed under the FOR FURTHER INFORMATION CONTACT heading at the beginning of the preamble. To find out more about SBREFA on the Internet, visit http:// www.faa.gov/regulations_policies/ rulemaking/sbre_act/. List of Subjects in 14 CFR Part 145 Aircraft, Aviation safety, and Reporting and recordkeeping requirements. The Amendment In consideration of the foregoing, the Federal Aviation Administration amends chapter I of title 14, Code of Federal Regulations as follows: PART 145—REPAIR STATIONS 1. The authority citation for part 145 continues to read as follows: ■ Authority: 49 U.S.C. 106(g), 40113, 44701– 44702, 44707, 44709, 44717. 2. Amend § 145.61 by— A. Removing ‘‘and’’ from the end of paragraph (b)(11); ■ B. Removing the period from the end of paragraph (b)(12) and adding ‘‘; and’’ in its place; and ■ C. Adding paragraph (b)(13). The addition reads as follows: ■ ■ § 145.61 Limited ratings. * * * * (b) * * * (13) Any other purpose for which the FAA finds the applicant’s request is appropriate. * * * * * ■ 3. Revise § 145.13 to read as follows: ehiers on DSK5VPTVN1PROD with RULES * § 145.103 Housing and facilities requirements. (a) Each certificated repair station must provide— (1) Housing for the facilities, equipment, materials, and personnel consistent with its ratings and limitations. VerDate Sep<11>2014 15:11 Jul 26, 2016 Jkt 238001 (2) Facilities for properly performing the maintenance, preventive maintenance, or alterations of articles or the specialized service for which it is rated. Facilities must include the following: (i) Sufficient work space and areas for the proper segregation and protection of articles during all maintenance, preventive maintenance, or alterations. (ii) Segregated work areas enabling environmentally hazardous or sensitive operations such as painting, cleaning, welding, avionics work, electronic work, and machining to be done properly and in a manner that does not adversely affect other maintenance or alteration articles or activities; (iii) Suitable racks, hoists, trays, stands, and other segregation means for the storage and protection of all articles undergoing maintenance, preventive maintenance, or alterations, and; (iv) Space sufficient to segregate articles and materials stocked for installation from those articles undergoing maintenance, preventive maintenance, or alterations to the standards required by this part. (v) Ventilation, lighting, and control of temperature, humidity, and other climatic conditions sufficient to ensure personnel perform maintenance, preventive maintenance, or alterations to the standards required by this part. (b) A certificated repair station may perform maintenance, preventive maintenance, or alterations on articles outside of its housing if it provides suitable facilities that are acceptable to the FAA and meet the requirements of § 145.103(a) so that the work can be done in accordance with the requirements of part 43 of this chapter. 4. Amend § 145.205(d) by revising the introductory text of paragraph (d) to read as follows: ■ § 145.205 Maintenance, preventive maintenance, and alterations performed for certificate holders under parts 121, 125, and 135, and for foreign persons operating a U.S.-registered aircraft in common carriage under part 129. * * * * * (d) The FAA may grant approval for a certificated repair station to perform line maintenance for an air carrier certificated under part 121 or part 135 of this chapter, or a foreign air carrier or foreign person operating a U.S.registered aircraft in common carriage under part 129 of this chapter on any aircraft of that air carrier or person, provided* * * * * PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 49163 Issued under authority provided by 49 U.S.C. 106(f), 44701(a), and 44703 in Washington, DC, on July 15, 2016. Michael Huerta, Administrator. [FR Doc. 2016–17612 Filed 7–26–16; 8:45 am] BILLING CODE 4910–13–P SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 240 [Release No. 34–78169] Order Recognizing the Resource Extraction Payment Disclosure Requirements of the European Union, Canada and the U.S. Extractive Industries Transparency Initiative as Substantially Similar to the Requirements of Rule 13q–1 Under the Securities Exchange Act of 1934 Securities and Exchange Commission. ACTION: Order. AGENCY: We are issuing an order recognizing the resource extraction payment disclosure requirements of the European Union, Canada and the U.S. Extractive Industries Transparency Initiative as substantially similar to the requirements of Rule 13q–1 under the Securities Exchange Act of 1934. DATES: July 27, 2016. FOR FURTHER INFORMATION CONTACT: Shehzad K. Niazi, Special Counsel; Office of Rulemaking, Division of Corporation Finance, at (202) 551–3430; or Elliot Staffin, Special Counsel; Office of International Corporate Finance, Division of Corporation Finance, at (202) 551–3450, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. SUPPLEMENTARY INFORMATION: Order Recognizing the Resource Extraction Payment Disclosure Requirements of the European Union, Canada and the U.S. Extractive Industries Transparency Initiative as Substantially Similar to the Requirements of Rule 13q–1 under the Securities Exchange Act of 1934 (‘‘Exchange Act’’). SUMMARY: June 27, 2016 For the reasons set forth in the adopting release for Rule 13q–1 and the accompanying amendments to Form SD,1 the Commission hereby finds that the following resource extraction payment disclosure regimes are substantially similar to the disclosure 1 See Section II.J.3.b of Exchange Act Release No. 34–78167 (June 27, 2016). E:\FR\FM\27JYR1.SGM 27JYR1

Agencies

[Federal Register Volume 81, Number 144 (Wednesday, July 27, 2016)]
[Rules and Regulations]
[Pages 49158-49163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17612]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 145

[Docket No.: FAA-2016-8744; Amdt. No. 145-31]
RIN 2120-AK86


Repair Stations

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Interim final rule.

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SUMMARY: The Federal Aviation Administration (FAA) is revising its 
repair station rules to remove the requirement that a repair station 
with an airframe rating provide suitable permanent housing to enclose 
the largest type and model aircraft listed on its operations 
specifications. The FAA is also revising its general housing and 
facilities regulation to provide that a repair station's housing for 
its facilities, equipment, materials, and personnel must be consistent 
not only with its ratings, but also with its limitations to those 
ratings. Finally, the FAA is adding an additional general purpose 
limited rating to cover maintenance work not covered by the existing 12 
limited rating categories. These changes are necessary because the 
existing ratings and housing rules impose unnecessary housing 
requirements on certain repair stations that work only on component 
parts of an aircraft. These changes will enable some repair stations to 
obtain a limited rating that is tailored to their intended scope of 
work, and will relieve repair stations that have a limited airframe 
rating, but that work only on component parts of an aircraft, from 
having to provide large and expensive housing to enclose the entire 
aircraft when that type of housing is not needed for the limited scope 
of their work.

DATES: Effective July 27, 2016.
    Submit comments on or before August 26, 2016.

ADDRESSES: Send comments identified by docket number FAA-2016-8744 
using any of the following methods:
     Federal eRulemaking Portal: Go to http://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 (DOT), 1200 New Jersey Avenue SE., Room 
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to 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.
     Fax: Fax comments to Docket Operations at 202-493-2251.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments 
from the public to better inform its rulemaking process. DOT posts 
these comments, without edit, including any personal information the 
commenter provides, to www.regulations.gov, as described in the system 
of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at 
http://www.regulations.gov at any time. Follow the online instructions 
for accessing the docket or 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: For technical questions concerning 
this action, contact Susan Traugott Ludwig, Aircraft Maintenance 
Division, Repair Station Branch, AFS-340, Federal Aviation 
Administration, 800 Independence Avenue SW., Washington, DC 20591; 
telephone (214) 587-8887; email susan.traugott.ludwig@faa.gov.

SUPPLEMENTARY INFORMATION: 

[[Page 49159]]

Good Cause for Final Adoption

    Section 553(b)(3)(B) of the Administrative Procedures Act (APA) (5 
U.S.C.) authorizes agencies to dispense with notice and comment 
procedures for rules when the agency for ``good cause'' finds that 
those procedures are ``impracticable, unnecessary, or contrary to the 
public interest.'' Under this section, an agency, upon finding good 
cause, may issue an interim final rule without seeking comment prior to 
the rulemaking.
    The FAA finds that notice and public comment to this interim final 
rule are unnecessary and contrary to the public interest. The 
provisions in this interim final rule will remove restrictive housing 
language affecting repair stations that hold limited airframe ratings 
and perform maintenance on airframe component parts rather than the 
entire aircraft. This rule will also amend the limited ratings section 
by adding a rating that will provide certificate holders and applicants 
with an additional option for defining the work they actually intend to 
perform. The removal of the restrictive housing language and adding an 
additional limited rating will not adversely affect current and future 
certificate holders. Regarding the restrictive housing language, this 
change is also consistent with how this regulation has been applied in 
practice. In addition, the removal of the restrictive language and 
adding an additional limited rating will not have a negative safety 
impact. The language is adopted to relieve economic burdens on the 
repair station industry and the possibility of forced repair station 
closings if the amended language were to be applied literally. 
Therefore, the FAA has determined that notice and public comment prior 
to publication are unnecessary.
    In addition, in accordance with 5 U.S.C. 553(d)(1), the FAA is 
making this interim final rule effective upon publication because it is 
a substantive rule that relieves a restriction.

Comments Invited

    The Regulatory Policies and Procedures of the Department of 
Transportation (DOT), (44 FR 1134; February 26, 1979), provide that to 
the maximum extent possible, operating administrations for the DOT 
should provide an opportunity for public comment on regulations issued 
without prior notice. Although the FAA is inviting comments, we have 
made the determination to adopt this interim final rule without prior 
notice and public comment due to the need to expedite a resolution for 
repair stations that perform maintenance on airframe component parts by 
removing the restrictive housing requirement and providing an 
additional limited rating as another option.

Authority for This Rulemaking

    The FAA's authority to issue rules on 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, Section 44701, General requirements, 
and section 44707, Examining and rating air agencies. Under section 
44701, the FAA may prescribe equipment and facilities for, and the 
timing and manner of, inspecting, servicing, and overhauling of 
aircraft, aircraft engines, propellers, appliances and constituent 
parts thereof. Under section 44707, the FAA may examine and rate repair 
stations. This regulation is within the scope of section 44701 since it 
specifies the facilities required, and the regulation is within the 
scope of 44707 since it specifies the ratings that are held by the 
repair stations.

I. Background

Statement of the Problem
    The FAA's rules provide for two categories of repair station 
ratings that define and govern which articles \1\ repair stations may 
work on under the part 145 regulations. These are class ratings 
(provided for in Sec.  145.59) and limited ratings (provided for in 
Sec.  145.61). Class ratings are broadly defined, and generally cover 
all articles listed in the category. Under Sec.  145.61, however, the 
``FAA may issue a limited rating to a repair station that maintains or 
alters only a particular type of airframe, powerplant, propeller, 
radio, instrument, or accessory, or part thereof.'' Section 145.61(b) 
provides that the FAA may issue limited ratings for 12 categories of 
aircraft articles. These are:
---------------------------------------------------------------------------

    \1\ Ref. 14 CFR 145.3, ``Article'' means aircraft, airframe, 
aircraft engine, propeller, appliance, or component part.
---------------------------------------------------------------------------

    (1) Airframes of a particular make and model;
    (2) Engines of a particular make and model;
    (3) Propellers of a particular make and model;
    (4) Instruments of a particular make and model;
    (5) Radio equipment of a particular make and model;
    (6) Accessories of a particular make and model;
    (7) Landing gear components;
    (8) Floats, by make;
    (9) Nondestructive inspection, testing, and processing;
    (10) Emergency equipment;
    (11) Rotor blades, by make and model; and
    (12) Aircraft fabric work.
    Prior to 2001, Sec.  145.33(b) \2\ listed 13 categories for which 
the FAA issued limited ratings. The last of these (the 13th category) 
covered ``Any other purpose for which the Administrator finds the 
applicant's request is appropriate.'' In the 2001 amendments, the FAA, 
among other things, removed the 13th category of limited ratings. Now, 
as before 2001, if an applicant for a repair station certificate did 
not want a full class rating, but wanted to work only on a particular 
component or component parts of an aircraft, the applicant would seek a 
limited rating. After that amendment became effective in 2003, if the 
component part or parts listed in the application were not airframe 
components and did not fit in one of the other 11 limited rating 
categories, the agency often issued a limited airframe rating anyway 
with the make and model of the aircraft listed on the operations 
specifications, and the scope of work pertaining to the component parts 
requested, included as a limitation. In most of these cases, the FAA 
did not consider the requirements in Sec.  145.103(b) that airframe-
rated repair stations must provide housing to enclose the entire 
aircraft because the scope of the requested work did not require the 
entire aircraft to be enclosed.
---------------------------------------------------------------------------

    \2\ The FAA amended part 145 in 2001 (66 FR 41088, August 6, 
2001). The new rules became effective on April 6, 2003.
---------------------------------------------------------------------------

    In many cases, the issuance of these ratings ran afoul of the 
agency's repair station housing and facilities regulations because many 
airframe-rated repair stations performing only component part 
maintenance did not provide housing that could enclose the entire 
aircraft listed on their operations specifications. Although these 
categories of repair stations could easily meet the requirements of 
Sec.  145.103(a)(1) (which requires housing for the facilities, 
equipment, materials, and personnel consistent with the repair 
station's ratings) if their work was limited to working only on 
component parts, many did not meet the requirements of Sec.  
145.103(b). To answer the question whether the term ``airframe rating'' 
as used in Sec.  145.103(b) contemplates a limited airframe rating, in 
March 2015, the FAA's Office of the

[[Page 49160]]

Chief Counsel issued a legal interpretation concluding that a limited 
airframe rating is an airframe rating as the term is used in that 
regulation.\3\ The interpretation essentially stated that an airframe-
rated repair station, whether limited airframe or class airframe-rated, 
must obtain the housing as required in Sec.  145.103(b).
---------------------------------------------------------------------------

    \3\ FAA legal interpretation to Finazzo (March 4, 2015) 
concluded that 14 CFR 145.103(b) requires a repair station with a 
limited airframe rating to have housing large enough to enclose the 
largest aircraft listed on its operations specifications. The 
opinion stated that ``nothing in the regulatory history or plain 
language of the regulation supports a conclusion that the airframe 
rating of section Sec.  145.103(b) applies only to class ratings and 
excludes limited airframe ratings.'' See Docket No. FAA-2016-8744.
---------------------------------------------------------------------------

    Prior to the March 2015 interpretation, some FAA offices that 
issued limited airframe ratings for component parts work interpreted 
the term airframe rating in Sec.  145.103(b) to refer only to a class 
airframe rating. Thus, in those cases, the issue of requiring housing 
to enclose the largest aircraft on the repair station's operations 
specifications was never addressed. According to that reasoning, a 
class rating as described in Sec.  145.59(a) would require housing 
large enough to enclose the entire aircraft, but a limited airframe 
rating provided as described in Sec.  145.61(b)(1) would not.\4\ 
Consequently, if an applicant sought only a limited airframe rating for 
a component part(s), those FAA offices did not believe Sec.  145.103(b) 
applied to those situations.
---------------------------------------------------------------------------

    \4\ This, despite that Sec.  145.61(b)(1) provides for a limited 
airframe rating for a ``particular make and model'' aircraft. An 
example could be a limited airframe rating for a Boeing Model 737 
aircraft that would allow a repair station to perform maintenance on 
only that model aircraft and no others. In that case, the holder of 
that limited rating would be required to provide housing to enclose 
that entire aircraft. It would be an anomalous result if the holder 
of a class airframe rating with a Boeing 737 aircraft listed on its 
operations specifications were required to house the entire 
aircraft, but the holder of a limited airframe rating for the same 
aircraft were not.
---------------------------------------------------------------------------

    Currently, many repair stations hold a limited airframe rating and 
do not have housing to enclose the largest type and model aircraft 
listed on their operations specifications. As one consequence of the 
above-referenced legal interpretation, some repair stations that 
perform maintenance on component parts only, and hold a limited 
airframe rating, are being advised by their local FAA offices to either 
obtain costly housing to enclose the largest type and model aircraft on 
their operations specifications, or to seek an exemption from the 
housing requirement. This has created an economic burden on these 
repair stations and a potential resource burden on the FAA to process a 
likely flood of petitions for exemption.

II. Overview of Interim Final Rule

    To remedy the situations whereby some limited airframe-rated repair 
stations are not in full compliance with the housing regulation, and 
where, in some cases, the scope of work being performed does not 
technically fit within the airframe rating, this interim final rule 
will remove the one-size-fits-all requirement of current Sec.  
145.103(b) and provide an additional limited rating category to cover 
work not addressed by the existing 12 categories. These actions will 
assist the repair station industry by eliminating the costly housing 
requirement that is not necessary in many cases. In place of that 
housing regulation, we are adding two amendments that will address and 
resolve this issue.
    First, the FAA is adding ``and limitations'' to the housing and 
facilities requirements in Sec.  145.103(a)(1). With this change, the 
housing for a repair station's facilities, equipment, materials, and 
personnel must be consistent not only with its ratings, but also with 
the limitations to those ratings. Adding ``limitations'' to this 
regulation will assist both the repair stations and the FAA in 
determining a repair station's housing needs by considering the 
limitations associated with the rating under review. For example, a 
repair station with a limited powerplant rating may list a certain make 
and model of powerplant under its limited rating, but intend to 
maintain or repair only specified component parts of the engine, such 
as blade or vane repairs. The repair station would only need to provide 
housing, equipment, materials, and personnel to perform maintenance on 
blades and vanes if it does not perform work on the entire engine.
    Second, the FAA is adding the 13th limited rating category under 
Sec.  145.61(b) that was removed in the 2001 final rule. The new 
limited rating will allow the FAA to issue a limited rating for any 
other purpose for which it finds the applicant's request is 
appropriate. The additional limited rating is intended to be issued for 
repair stations that wish to perform maintenance on items such as 
aircraft interiors, upholstering, serving carts, cabinets, unit load 
devices, and other component items that do not necessarily fit into one 
of the 12 existing limited ratings. This action provides future 
certificate holders another option for ratings that will better define 
the type of maintenance they wish to perform. It will reduce the number 
of limited airframe ratings issued for component part work for which an 
airframe rating is not needed. In some cases, existing repair stations 
that hold limited airframe ratings issued for items that do not fit the 
category may amend their rating to the newly restored 13th limited 
rating, but such amendments are not required. If, however, an existing 
airframe-rated repair station wishes to add a non-airframe component to 
its operations specifications or capabilities list, it would have to 
apply for a limited rating in one of the other 12 categories, as 
appropriate.

III. Discussion of Interim Final Rule

    In order to remedy the above-described problems caused by the 
restrictive housing requirements of Sec.  145.103(b), the FAA is 
removing the text in its entirety. Removing existing Sec.  145.103(b) 
provides flexibility to certificate holders and applicants with regard 
to the type of housing they are required to provide. Current Sec.  
145.103(c) provides that a certificated repair station may perform 
maintenance on articles outside of its housing if it provides suitable 
facilities that meet the general housing and facilities requirements of 
Sec.  145.103(a) so that the work can be done in accordance with 14 CFR 
part 43. This paragraph is renumbered as Sec.  145.103(b).
    Although the requirement to enclose the largest type and model 
aircraft is no longer required, suitable housing as identified in 
Sec. Sec.  145.101 and 145.103(a) remains applicable for all repair 
stations, regardless of whether they hold class or limited ratings. 
Section 145.101 requires, generally, that each certificated repair 
station ``must provide housing, facilities, equipment, materials, and 
data that meet the applicable requirements for the issuance of the 
certificate and ratings the repair station holds.'' Therefore, the FAA 
must evaluate each repair station application to assure that the 
housing and other requirements appropriate to the rating sought are 
met. In order to meet the requirements of Sec. Sec.  145.101 and 
145.103(a), repair stations that intend to work on an entire aircraft, 
or large portions of it, would still be required to provide housing 
that ensures appropriate protection from environmental elements for the 
work being performed.
    The FAA is removing the introductory phrase of Sec.  145.205(d) 
(``Notwithstanding the housing requirement of Sec.  145.103(b)'') 
because the referenced section is being withdrawn by this rulemaking. 
As a result of that withdrawal, part 145 will no longer contain a 
specific housing regulation requiring an entire aircraft to be 
enclosed--rather the general

[[Page 49161]]

requirements of Sec. Sec.  145.101 and 145.103 will require housing and 
other protections appropriate for the work performed. Newly renumbered 
Sec.  145.103(b) (formerly Sec.  145.103(c)) permits repair stations 
(including those authorized to perform line maintenance under Sec.  
145.205(d)) to perform maintenance outside of its housing so long as 
they provide suitable facilities to adequately protect the work and 
personnel. Although new Sec.  145.103(b) will still require a repair 
station to provide suitable facilities if the repair station works 
outside of its housing, the intent remains that those repair stations 
authorized to perform line maintenance at airport locations on the ramp 
outside of housing should ensure, to the extent practicable, that the 
work is protected from adverse elements in accordance with Sec. Sec.  
145.101 and 145.103.
    In addition, the FAA is adding the phrase ``and limitations'' to 
the end of paragraph (1) of Sec.  145.103(a). The section will now 
require that each certificated repair station must provide: ``(1) 
Housing for the facilities, equipment, materials, and personnel 
consistent with its ratings and limitations.'' With this change, if a 
repair station's scope of work is limited to work that does not require 
the size and type of housing that the rating without the limitation 
would require, the repair station would need to provide housing only 
sufficient to accommodate its limited scope of work.
    Finally, this interim final rule adds a limited rating to Sec.  
145.61(b) that allows the FAA to issue limited ratings for any other 
purpose for which it finds the applicant's request is appropriate. This 
new rating provides applicants and existing certificate holders another 
option for ratings that will better define the type of maintenance they 
wish to perform, whether it be on component parts of an airframe, 
powerplant, propeller, or on any other article in the class ratings 
identified in Sec.  145.59. Without this additional rating category, 
many repair stations could continue to be issued a limited airframe 
rating as a catch all rating, which does not always clearly identify 
the actual type of work being performed.

IV. Regulatory Notices and Analyses

A. Regulatory Evaluation
    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 and Executive Order 13563 direct 
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 
unnecessary obstacles to the foreign commerce of the United States. In 
developing U.S. standards, the 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 interim final rule.
    Department of Transportation Order DOT 2100.5 prescribes policies 
and procedures for simplification, analysis, and review of regulations. 
If the expected cost impact is so minimal that a proposed or final rule 
does not warrant a full evaluation, this order permits that a statement 
to that effect and the basis for it to be included in the preamble if a 
full regulatory evaluation of the cost and benefits is not prepared. 
Such a determination has been made for this rule. The reasoning for 
this determination follows.
    Currently, Sec.  145.103(b) states that a certificated repair 
station with an airframe rating must provide suitable permanent housing 
to enclose the largest type and model of aircraft listed on its 
operations specifications. This requirement is problematic for airframe 
rated repair stations that perform maintenance only on component parts 
and not the entire aircraft. Airframe-rated repair stations that do not 
provide the housing because they do not need it for their scope of work 
need to petition for an exemption from it. This rule will remove Sec.  
145.103(b) and retain the general housing and facilities requirements 
in Sec. Sec.  145.101 and 145.103(a) and (c), which specify that each 
repair station must provide suitable housing consistent with its 
ratings. Thus this rule will remove an unnecessary burden for airframe-
rated repair stations, and the costs would be minimal, as it is 
relieving in nature.
    The FAA's review of past exemption requests prompted by the 
existing requirement in Sec.  145.103(b) showed that from 2004 to the 
present, the agency processed 15 petitions for exemption. The FAA 
estimates that, on average, a petitioner spends 20 hours to prepare a 
petition for exemption from Sec.  145.103(b), and the FAA takes 50 
hours to process each of those petitions. According to data from the 
Bureau of Labor Statistics, in 2016 the mean hourly wage with benefits 
is $41.38 for a mechanic and supervisor. The average hourly wage for a 
J band FAA employee in Washington DC is $58.00. Over a twelve-year 
period at today's wages, the estimated savings equals 15 exemptions 
multiplied by 20 hours per exemption multiplied by $41.38 per hour, 
plus 15 exemptions multiplied by 50 hours per exemption multiplied by 
$58.00 per hour, which equals $56,000, or approximately $4,700 
annually. This is a minimal cost; therefore, under Department of 
Transportation Order DOT 2100.5, the agency is not required to prepare 
a full regulatory evaluation.
    The FAA has, therefore, determined that this rule is not a 
``significant regulatory action'' as defined in section 3(f) of 
Executive Order 12866, and is not ``significant'' as defined in DOT's 
Regulatory Policies and Procedures.
B. Regulatory Flexibility Determination
    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation.'' To achieve this principle, agencies are 
required to solicit and consider flexible regulatory proposals and to 
explain the rationale for their actions to assure that such proposals 
are given serious consideration. The RFA 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 rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a 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

[[Page 49162]]

factual basis for this determination, and the reasoning should be 
clear.
    Many repair stations are small entities. Future business decisions 
to provide repair of aircraft components can be negatively impacted if 
the existing housing rule for airframe-rated repair stations remains in 
place. Currently each airframe-rated repair station must provide 
suitable permanent housing to enclose the largest type and model of 
aircraft listed on its operations specifications. For those airframe-
rated repair stations that provide component maintenance only, and not 
full aircraft maintenance, the requirement to provide permanent housing 
for the aircraft would be very expensive and counterproductive. Most of 
the petitions for exemption from Sec.  145.103(b) are from repair 
stations that do not work on an entire aircraft. This rule removes 
Sec.  145.103(b) so that all repair stations will need to provide only 
the housing necessary to conduct their repair business. Thus this rule 
will be relieving in nature and be a benefit to small entities, albeit 
a small benefit. While the rule will impact a substantial number of 
small entities, it will not impose a significant economic impact on 
them.
    If an agency determines that a rulemaking will not result in a 
significant economic impact on a substantial number of small entities, 
the head of the agency may so certify under section 605(b) of the RFA. 
Therefore, as provided in section 605(b), the head of the FAA certifies 
that this rulemaking will not result in a significant economic impact 
on a substantial number of small entities.
C. International Trade Impact Assessment
    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing standards or engaging in related activities 
that create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety, and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards. The FAA has 
assessed the potential effect of this rule and determined that it 
offers the same relieving impact on affected international repair 
stations.
D. Unfunded Mandates Assessment
    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $155 million in lieu of $100 
million. This rule does not contain such a mandate; therefore, the 
requirements of Title II of the Act do not apply.
E. Paperwork Reduction Act
    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The FAA has determined that 
there is no new requirement for information collection associated with 
this interim final rule.
F. International Compatibility and Cooperation
    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
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.
    Harmonization. This rulemaking will not be involved in 
harmonization with any foreign aviation authorities.
G. Environmental Analysis
    FAA Order 1050.1F identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion identified in paragraph 5-6.6 and involves no extraordinary 
circumstances.

V. Executive Order Determinations

A. Executive Order 13132, Federalism
    The FAA has analyzed this interim final rule under the principles 
and criteria of Executive Order 13132, Federalism. The agency 
determined that this action will not have a substantial direct effect 
on the States, or the relationship between the Federal Government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government, and, therefore, does not have 
Federalism implications.
B. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use
    The FAA analyzed this interim final rule under Executive Order 
13211, Actions Concerning Regulations that Significantly Affect Energy 
Supply, Distribution, or Use (May 18, 2001). The agency has determined 
that it is not a ``significant energy action'' under the executive 
order and it is not likely to have a significant adverse effect on the 
supply, distribution, or use of energy.
C. Executive Order 13609, International Cooperation
    Executive Order 13609, Promoting International Regulatory 
Cooperation, (77 FR 26413, May 4, 2012) promotes international 
regulatory cooperation to meet shared challenges involving health, 
safety, labor, security, environmental, and other issues and to reduce, 
eliminate, or prevent unnecessary differences in regulatory 
requirements. The FAA has analyzed this action under the policies and 
agency responsibilities of Executive Order 13609, and has determined 
that this action would have no effect on international regulatory 
cooperation.

VI. How To Obtain Additional Information

A. Rulemaking Documents
    An electronic copy of a rulemaking document may be obtained by 
using the Internet--
    1. Search the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visit the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies/ or
    3. Access the Government Printing Office's Web page at: http://www.gpo.gov/fdsys/.
    Copies may also be obtained by sending a request (identified by 
notice, amendment, or docket number of this rulemaking) to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680.

B. Comments Submitted to the Docket

    Comments received may be viewed by going to http://www.regulations.gov and following the online instructions to

[[Page 49163]]

search the docket number for this action. Anyone is able to search the 
electronic form of all comments received into any of the FAA's dockets 
by the name of the individual submitting the comment (or signing the 
comment, if submitted on behalf of an association, business, labor 
union, etc.).

C. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA to comply with small entity requests for information 
or advice about compliance with statutes and regulations within its 
jurisdiction. A small entity with questions regarding this document, 
may contact its local FAA official, or the person listed under the FOR 
FURTHER INFORMATION CONTACT heading at the beginning of the preamble. 
To find out more about SBREFA on the Internet, visit http://www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects in 14 CFR Part 145

    Aircraft, Aviation safety, and Reporting and recordkeeping 
requirements.

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends chapter I of title 14, Code of Federal 
Regulations as follows:

PART 145--REPAIR STATIONS

0
1. The authority citation for part 145 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701-44702, 44707, 44709, 
44717.


0
2. Amend Sec.  145.61 by--
0
A. Removing ``and'' from the end of paragraph (b)(11);
0
B. Removing the period from the end of paragraph (b)(12) and adding ``; 
and'' in its place; and
0
C. Adding paragraph (b)(13).
    The addition reads as follows:


Sec.  145.61  Limited ratings.

* * * * *
    (b) * * *
    (13) Any other purpose for which the FAA finds the applicant's 
request is appropriate.
* * * * *

0
3. Revise Sec.  145.13 to read as follows:


Sec.  145.103  Housing and facilities requirements.

    (a) Each certificated repair station must provide--
    (1) Housing for the facilities, equipment, materials, and personnel 
consistent with its ratings and limitations.
    (2) Facilities for properly performing the maintenance, preventive 
maintenance, or alterations of articles or the specialized service for 
which it is rated. Facilities must include the following:
    (i) Sufficient work space and areas for the proper segregation and 
protection of articles during all maintenance, preventive maintenance, 
or alterations.
    (ii) Segregated work areas enabling environmentally hazardous or 
sensitive operations such as painting, cleaning, welding, avionics 
work, electronic work, and machining to be done properly and in a 
manner that does not adversely affect other maintenance or alteration 
articles or activities;
    (iii) Suitable racks, hoists, trays, stands, and other segregation 
means for the storage and protection of all articles undergoing 
maintenance, preventive maintenance, or alterations, and;
    (iv) Space sufficient to segregate articles and materials stocked 
for installation from those articles undergoing maintenance, preventive 
maintenance, or alterations to the standards required by this part.
    (v) Ventilation, lighting, and control of temperature, humidity, 
and other climatic conditions sufficient to ensure personnel perform 
maintenance, preventive maintenance, or alterations to the standards 
required by this part.
    (b) A certificated repair station may perform maintenance, 
preventive maintenance, or alterations on articles outside of its 
housing if it provides suitable facilities that are acceptable to the 
FAA and meet the requirements of Sec.  145.103(a) so that the work can 
be done in accordance with the requirements of part 43 of this chapter.

0
4. Amend Sec.  145.205(d) by revising the introductory text of 
paragraph (d) to read as follows:


Sec.  145.205  Maintenance, preventive maintenance, and alterations 
performed for certificate holders under parts 121, 125, and 135, and 
for foreign persons operating a U.S.-registered aircraft in common 
carriage under part 129.

* * * * *
    (d) The FAA may grant approval for a certificated repair station to 
perform line maintenance for an air carrier certificated under part 121 
or part 135 of this chapter, or a foreign air carrier or foreign person 
operating a U.S.-registered aircraft in common carriage under part 129 
of this chapter on any aircraft of that air carrier or person, 
provided-
* * * * *

    Issued under authority provided by 49 U.S.C. 106(f), 44701(a), 
and 44703 in Washington, DC, on July 15, 2016.
Michael Huerta,
Administrator.
[FR Doc. 2016-17612 Filed 7-26-16; 8:45 am]
 BILLING CODE 4910-13-P