Medical Certification Standards for Commercial Balloon Operations, 71218-71238 [2022-25288]
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
application, or as provided by paragraph
(c)(2) of this section.
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■ 5. Revise § 47.40 to read as follows:
DEPARTMENT OF TRANSPORTATION
§ 47.40 Registration expiration and
renewal.
[Docket No. FAA–2021–1040; Amdt. Nos.
61–152 and 68–2]
(a) Initial Registration. A Certificate of
Aircraft Registration issued in
accordance with § 47.31 expires seven
years after the last day of the month in
which it is issued.
(b) Renewal. Each holder of a
Certificate of Aircraft Registration, AC
Form 8050–3, containing an expiration
date may apply for renewal of a
Certificate of Aircraft Registration by
submitting an Aircraft Registration
Renewal Application, AC Form 8050–
1B, and the fee required by § 47.17
during the six months preceding the
expiration date for the Certificate of
Aircraft Registration.
(1) A Certificate of Aircraft
Registration issued under this paragraph
after January 23, 2023 expires seven
years after the last day of the month in
which it was issued.
(2) A Certificate of Aircraft
Registration that is in effect on January
23, 2023 expires seven years after the
last day of the month in which it is
issued, notwithstanding the expiration
date on the valid Certificate of Aircraft
Registration.
(c) Inaccurate Information. The
Administrator may require the owner of
a registered aircraft to submit a
complete Aircraft Registration
Application, AC Form 8050–1, and fee
prior to the expiration date if the
Administrator finds that the Certificate
of Aircraft Registration contains
inaccurate information.
■ 6. Amend § 47.61 by revising
paragraph (c) to read as follows:
§ 47.61 Dealer’s Aircraft Registration
Certificates.
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(c) If a Dealer’s Aircraft Registration
Certificate for an aircraft registered
under this subpart expires in
accordance with § 47.71, the aircraft
owner must submit an application for
aircraft registration in accordance with
§ 47.31 or the assignment of registration
number will be canceled in accordance
with § 47.15(i)(2).
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Issued under authority provided by 49
U.S.C. 106(f), 44701(a), and 44703 in
Washington, DC, on or about November 16,
2022.
Billy Nolen,
Acting Administrator.
[FR Doc. 2022–25289 Filed 11–21–22; 8:45 am]
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Federal Aviation Administration
Table of Contents
14 CFR Parts 61 and 68
RIN 2120–AL51
Medical Certification Standards for
Commercial Balloon Operations
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
The FAA is amending its
regulations to require airmen hold a
valid second-class medical certificate
when exercising the privileges of a
commercial pilot certificate in a balloon
for compensation or hire except when
conducting flight training in a balloon.
In addition, the FAA makes
miscellaneous amendments related to
medical certification requirements for
special medical flight tests and a minor
change to the BasicMed regulations.
DATES: This rule is effective December
22, 2022, except for the amendments to
§§ 61.3(c)(2)(vi), 61.23(a)(2)(i),
61.23(a)(2)(ii), 61.23(a)(2)(iii),
61.23(b)(3), 61.23(b)(4), 61.23(b)(5),
61.23(d)(1)(iii), and 61.23(d)(2)(i)),
which are effective May 22, 2023.
ADDRESSES: For information on where to
obtain copies of rulemaking documents
and other information related to this
final rule, see ‘‘How to Obtain
Additional Information’’ in the
SUPPLEMENTARY INFORMATION section of
this document.
FOR FURTHER INFORMATION CONTACT:
Bradley Zeigler, Training & Certification
Group, Federal Aviation
Administration, 800 Independence
Avenue SW, Washington, DC 20591;
telephone (202) 267–9601; email
Bradley.C.Zeigler@faa.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
List of Abbreviations and Acronyms
Frequently Used in This Document
AMCD Aerospace Medical Certification
Division
ADHD Attention Deficit Hyperactivity
Disorder
AME Aviation Medical Examiner
ASI Aviation Safety Inspector
ATP Airline Transport Pilot
BFA Balloon Federation of America
IRFA Initial Regulatory Flexibility Analysis
LOA Letter of Authorization
NAS National Airspace System
NDR National Driver Register
NPRM Notice of proposed rulemaking
NTSB National Transportation Safety Board
PDPS Problem Driver Pointer System
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PIC Pilot in Command
SIC Second in Command
SODA Statement of Demonstrated Ability
I. Executive Summary
A. Purpose of the Regulatory Action
B. Changes Made in This Final Rule
C. Summary of the Costs and Benefits
II. Authority for This Rulemaking
III. Background
A. Need for Regulation
B. National Transportation Safety Board
(NTSB) Recommendations
C. Summary of the NPRM
D. General Overview of Comments
IV. Discussion of Comments and the Final
Rule
A. Application of Medical Certificate
Requirement to Only Operations Based
on Size of Envelope or Passenger
Capacity
B. Application of Rule to Commercial
Balloon Operations Without Passengers
C. Drug and Alcohol Testing
D. Miscellaneous Issues
E. Comments Regarding Miscellaneous
Amendments
V. Regulatory Notices and Analyses
A. Summary of the Regulatory Impact
Analysis
B. Regulatory Flexibility Act
C. International Trade Impact Assessment
D. Unfunded Mandates Assessment
E. Paperwork Reduction Act
F. International Compatibility
G. Environmental Analysis
VI. Executive Order Determination
A. Executive Order 13132, Federalism
B. Executive Order 13211, Regulations
That Significantly Affect Energy Supply,
Distribution, or Use
C. Executive Order 13609, International
Cooperation
VII. Privacy
VIII. Additional Information
A. Electronic Access and Filing
B. Small Business Regulatory Enforcement
Fairness Act
I. Executive Summary
A. Purpose of the Regulatory Action
This final rule implements section
318 (‘‘Commercial Balloon Pilot Safety
Act of 2018’’) of Public Law 115–254,
the FAA Reauthorization Act of 2018. In
addition, this final rule responds to
National Transportation Safety Board
(NTSB) Safety Recommendation A–17–
034, which recommends that the FAA
remove the medical certification
exemption in part 61 for commercial
balloon pilots 1 receiving compensation
for transporting passengers.
This final rule amends §§ 61.3 and
61.23 of title 14 of the Code of Federal
Regulations (14 CFR) to require
commercial balloon pilots conducting
1 The FAA uses the term ‘‘commercial balloon
pilots’’ in this rule to refer to airmen conducting
operations in a balloon for compensation or hire,
including operations involving the carriage of
persons or property.
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operations for compensation or hire to
hold a valid second-class medical
certificate. However, this final rule will
continue to allow pilots to provide flight
training in balloons without requiring a
medical certificate. The rule also
amends the table setting forth medical
certificate durations in § 61.23(d) for
consistency with amendments to
§§ 61.3 and 61.23(a) and (b).
The FAA is also making two
miscellaneous amendments. First, the
FAA is amending sections of part 61 to
allow persons to act as pilot in
command (PIC) during a special medical
flight test authorized under part 67
without holding a medical certificate.
The second is making a minor change
to regulations amended or established
by the Alternative Pilot Physical
Examination and Education
Requirements final rule to 2 allow a
required pilot flightcrew member who is
not acting as PIC to operate under
BasicMed.
B. Changes Made in This Final Rule
The FAA published a Notice of
Proposed Rulemaking (NPRM), Medical
Certification Standards for Commercial
Balloon Operations on November 18,
2021 (86 FR 64419). This rulemaking
finalizes the proposal, without change.
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C. Summary of the Costs and Benefits
This final rule will generate costs for
balloon pilots to obtain a second-class
medical certificate and for some pilots
to seek an Authorization for Special
Issuance of a Medical Certificate
(special issuance). There will also be
costs to the FAA to implement this
requirement in terms of reviewing and
processing submissions related to
certification. The FAA estimates the
present value of total costs over ten
years is $2.4 million to $16.3 million
with a mid-estimate of $6.9 million at a
7 percent discount rate and $2.9 million
to $19.9 million with a mid-estimate of
$8.4 million at a 3 percent discount rate.
The annualized costs over ten years are
$0.3 million to $2.3 million with a midestimate of $1.0 million at a 7 percent
discount rate and $0.3 million to $2.3
million with a mid-estimate of $1.0
million at a 3 percent discount rate. The
wide range in the cost estimates
primarily reflects the uncertainty on the
2 The Alternative Pilot Physical Examination and
Education Requirements final rule amended
sections of part 61 and established part 68 to allow
persons to conduct certain flight operations in
powered aircraft while exercising the privileges of
a private pilot certificate without holding a medical
certificate issued under part 67. The provisions
established by Alternative Pilot Physical
Examination and Education Requirements final rule
will be collectively referred to in this preamble as
BasicMed. 82 FR 3149 (Jan. 11, 2017).
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number of commercial balloon pilots
who will seek medical certification.
The benefits of the final rule include
enhanced safety of commercial balloon
operations through reduced risks of
accidents, fatalities, and injuries caused
by medical impairment of balloon
pilots.
II. Authority for This Rulemaking
The FAA’s authority to issue rules on
aviation safety is in Title 49 of the
United States Code. Section 106
describes the authority of the FAA
Administrator. Subtitle VII, Aviation
Programs, describes in more detail the
scope of the Agency’s authority.
The FAA is issuing this final rule
under the authority described in Section
44701, General Requirements; Section
44702, Issuance of Certificates; and
Section 44703, Airman Certificates.
Under these sections, the FAA
prescribes regulations and minimum
standards for practices, methods, and
procedures the Administrator finds
necessary for safety in air commerce.
The FAA is also authorized to issue
certificates, including airman
certificates and medical certificates, to
qualified individuals. This rulemaking
is within the scope of that authority.
Further, Section 318 of Public Law
115–254 directs the Administrator to
‘‘revise 14 CFR 61.3(c) (relating to
second-class medical certificates) to
apply to an operator of an air balloon to
the same extent such regulations apply
to a pilot flightcrew member of other
aircraft.’’
III. Background
A. Need for Regulation
On the morning of July 30, 2016, a hot
air balloon struck power lines and burst
into flames over a pasture near
Lockhart, Texas, killing all 15
passengers and the pilot. The flight was
conducted in a balloon (N2469L)
operated by Heart of Texas Hot Air
Balloon Rides under part 91 as a
sightseeing passenger flight. The pilot
was exercising the privileges of a
commercial pilot certificate.
Through its investigation, the NTSB
determined that the pilot had been
diagnosed with depression and
attention deficit hyperactivity disorder
(ADHD) 3 and identified medications
found in the pilot’s system that are
known to cause impairment.4
3 ADHD
is known to cause cognitive deficits that
may affect decision-making and, ultimately, safety
of flight.
4 The medications identified by the NTSB are
listed on the FAA’s ‘‘Do Not Issue’’ and ‘‘Do Not
Fly’’ lists found in the AME Guide. https://
www.faa.gov/about/office_org/headquarters_
offices/avs/offices/aam/ame/guide/pharm/dni_dnf/.
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The NTSB determined that the
probable cause of this accident was the
pilot’s pattern of poor decision-making
that led to the initial launch, continued
flight in fog and above clouds, and
descent near or through clouds that
decreased the pilot’s ability to see and
avoid obstacles. The NTSB further
determined that (1) the pilot’s impairing
medical conditions and medications,
and (2) the FAA’s policy to not require
a medical certificate for commercial
balloon pilots, were contributing factors
in the accident.5
Prior to the Heart of Texas accident,
the FAA generally considered
commercial balloon operations to be a
low-risk and extremely small segment of
aviation in the United States. Research
conducted by the FAA revealed 54
commercial hot air balloon accidents
between 2003 and 2013, including four
fatal accidents. In 2015, commercial
sightseeing balloon operations
represented 0.057% of the flight hours
of total civil aircraft operations.6 Prior to
this accident, pilots conducted
commercial balloon operations in the
U.S. for decades without any accidents
specifically attributed to medical
deficiencies.
In response to the Heart of Texas
accident, the FAA worked with industry
advocacy organization Balloon
Federation of America (BFA) to support
its 2017 Envelope of Safety Program.7
The voluntary program promoted safety
within the commercial balloon industry
by educating consumers with
information when making balloon ride
purchase decisions and offered multiple
tiers of safety accreditation by the BFA.
While the FAA supports the efforts of
the BFA to enhance safety and
professionalism of the industry while
providing consumers with more
information when choosing a
commercial balloon ride operator, the
agency notes that not all balloon
operators are members of the BFA, and
BFA members are not required to adhere
to any specific standards in order to
maintain professional membership.
Consequently, the FAA considered
BFA’s efforts to achieve voluntary
compliance with industry standards to
be insufficient alone to address the need
for additional oversight of airmen
5 NTSB Accident Report NTSB/AAR–17/03
PB2018–100161 at p. 49.
6 FAA Docket Submission to the National
Transportation Safety Board for the investigation of
the Heart of Texas Hot Air Balloon Accident Balony
Kubicek BB85Z balloon, N2469L, Lockhart, Texas;
July 30, 2016, Dated April 19, 2017. Page 6.
7 https://www.bfa.net/88888979-news/1579envelope-of-safety-program-announced.
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conducting balloon operations for
compensation or hire.
In Section 318 (‘‘Commercial Balloon
Pilot Safety Act of 2018’’) of Public Law
115–254, The FAA Reauthorization Act
of 2018 (the Act), Congress directed the
FAA to ‘‘revise section 61.3(c) of Title
14, Code of Federal Regulations (relating
to second-class medical certificates), to
apply to an operator of an air balloon to
the same extent such regulations apply
to a pilot flightcrew member of other
aircraft.’’
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B. National Transportation Safety Board
Recommendations
The NTSB made two Safety
Recommendations in response to the
2016 Heart of Texas accident. Safety
Recommendation A–17–034 urged the
FAA to ‘‘Remove the medical certificate
exemption in 14 [CFR] 61.23(b) for
pilots who are exercising their
privileges as commercial balloon pilots
and are receiving compensation for
transporting passengers.’’ Safety
Recommendation A–17–045 urged the
FAA to ‘‘analyze your current policies,
procedures, and tools for conducting
oversight of commercial balloon
operations in accordance with your
Integrated Oversight Philosophy, taking
into account the findings of this
accident; [and] based on this analysis,
develop and implement more effective
ways to target oversight of the operators
and operations that pose the most
significant safety risks to the public.’’
The FAA agreed with the safety
benefits of Safety Recommendation A–
17–034 8 and stated its intention to add
the recommended change to its
rulemaking agenda. The FAA responded
to Safety Recommendation A–17–045 9
by initiating a plan to develop and
implement more effective ways to target
oversight of operators posing the most
significant safety risk to the public. The
FAA identified and increased
surveillance on the operators of the
largest classes of balloons using
information obtained from the Civil
Aviation Registry, repair stations, and
industry.
C. Summary of the NPRM
The FAA proposed amending the
exception to hold a medical certificate
for balloon pilots in § 61.3(c)(2)(vi) by
limiting it to certain types of balloon
operations. Specifically, the FAA
proposed that any person holding a
pilot certificate with a balloon class
8 NTSB Safety Recommendation A–17–034
https://www.ntsb.gov/_layouts/ntsb.recsearch/
Recommendation.aspx?Rec=A-17-034.
9 NTSB Safety Recommendation A–17–045
https://www.ntsb.gov/_layouts/ntsb.recsearch/
Recommendation.aspx?Rec=A-17-045.
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rating and exercising the privileges of a
private pilot certificate in a balloon; or
providing flight training in a balloon in
accordance with § 61.133(a)(2)(ii) is not
required to hold a medical certificate.
As a result of the amendment, the
general requirement in § 61.3(c)(1) for a
person to hold a medical certificate to
serve as a pilot flight crewmember
would apply to balloon pilots
conducting operations for compensation
or hire in a balloon (other than flight
training) to hold a medical certificate
issued under part 67.
Section 61.23 sets forth the specific
requirements for when a particular class
of medical certificate is required. Under
§ 61.23(a)(2)(ii), a second-class medical
certificate generally is required when
exercising the privileges of a
commercial pilot certificate. Currently,
under § 61.23(b)(3), a second-class
medical certificate is not required when
exercising the privileges of a pilot
certificate with a glider category rating
or balloon class rating in a glider or
balloon, as appropriate.
First, the NPRM proposed to amend
§ 61.23(a)(2) to add a requirement for
any person exercising the privileges of
a commercial pilot certificate for
compensation or hire in a balloon to
hold a second-class medical certificate.
Second, the NPRM proposed to remove
the allowance in § 61.23(b) by
specifying that a medical certificate is
not required when exercising the
privileges of a private pilot certificate
with a balloon class rating in a balloon
or when a person is exercising the
privileges of a commercial pilot
certificate with a balloon class rating in
a balloon and providing flight training
in accordance with § 61.133(a)(2)(ii).
Section 61.23(d) includes a table
providing the duration for each class of
medical certificate depending on several
factors, including the medical certificate
privilege that is being exercised. In
order to maintain consistency with
other medical certificate privileges in
§ 61.23(d), the NPRM proposed related
amendments to the table of medical
certificate durations at § 61.23(d)(1)(iii)
and (d)(2)(i). Specifically, the NPRM
proposed to add persons who are
exercising the privileges of a
commercial pilot certificate (other than
for flight training) in a balloon to the
established medical certificate duration
table in § 61.23(d).
In addition, the NPRM proposed
amendments to alleviate confusion and
eliminate burdens for persons obtaining
special medical flight tests and for
persons operating under BasicMed.
First, the NPRM proposed amending
§§ 61.3(c)(2) and 61.23(b) to allow
persons to act as PIC during a special
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medical flight test authorized under part
67 without holding a medical certificate.
Second, the NPRM proposed amending
several sections to alleviate certain
burdens that resulted from the
BasicMed final rule. Specifically, the
NPRM proposed amending
§§ 61.3(c)(2)(xiv), 61.23(c)(3)(i)(C)
through (E), 61.113(i), 68.3(a) and (b),
and 68.9(a) by expanding the
requirements to allow required pilot
flightcrew members to operate under
BasicMed in addition to those
individuals acting as PIC.
D. General Overview of Comments
The FAA considered 192 comments
received during the 60-day public
comment period. Of the comments
received, 15 were out of scope, 17 were
generally supportive of the proposed
rule, and 112 generally opposed the rule
as proposed. A significant number of
commenters (142 commenters)
suggested changes to the proposed rule.
The remaining comments expressed
neither support nor opposition to the
rule. The majority of commenters were
individuals. Two industry advocacy
organizations submitted comments, as
well as the NTSB.
IV. Discussion of Comments and the
Final Rule
This rule amends part 61 to require a
person who holds a commercial pilot
certificate with a lighter-than-air
category and balloon class rating to hold
a valid second-class medical certificate
when exercising the privileges of that
certificate in a balloon for compensation
or hire, unless that person is conducting
flight training in accordance with
§ 61.133(a)(2)(ii).
Specifically, the exception in
§ 61.3(c)(2)(vi) is amended to reflect that
any person holding a pilot certificate
with a balloon class rating who is
exercising the privileges of a private
pilot certificate in a balloon; or
providing flight training in a balloon in
accordance with § 61.133(a)(2)(ii) is not
required to hold a medical certificate.
By revising the exception in
§ 61.3(c)(2)(vi), balloon pilots
conducting operations for compensation
or hire in a balloon (other than flight
training), such as carrying passengers or
property and advertising operations, are
required under § 61.3(c)(1) to hold a
medical certificate issued under part 67.
Further and for consistency across the
regulations, the FAA is amending
§ 61.23(a)(2) to require any person
exercising the privileges of a
commercial pilot certificate for
compensation or hire in a balloon,
except when conducting flight training,
to hold a second-class medical
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certificate; and § 61.23(b) to remove the
allowance to exercise the privileges of a
balloon pilot certificate without a
medical certificate. Additionally, the
FAA adds an exception at § 61.23(b)(4)–
(5) to explain under what circumstances
balloon operations are excepted from
the requirement to hold a second-class
medical certificate.
A. Application of Medical Certificate
Requirement to Operations Based on
Size of Envelope or Passenger Capacity
Seventy-two commenters
recommended that the proposed rule
should only apply to certain operations
based on size of envelope or number of
people in the basket. Commenters
proposed a passenger threshold ranging
from 3 or more to 8 or more people. The
Balloon Federation of America (BFA)
stated that ‘‘any medical requirement for
commercial balloon pilots should be
limited to those operating balloons of
such size as to legally transport 6 or
more passengers.’’ Other commenters
described the threshold as balloons with
envelopes with volumes ranging from
77,682 cubic feet to 180,000 cubic feet.
Many of the commenters emphasized
that these thresholds separated smallscale commercial balloonists from largescale professional balloon ride
operators. A common sentiment among
commenters was that small commercial
balloon operators were being overregulated as a result of mishaps from
larger balloon operators. Some
commenters suggested that the NTSB
safety recommendations were
specifically directed toward the safety of
larger passenger-carrying balloons.
The FAA notes that the second-class
medical certification requirement
represents a minimum safety standard
for commercial operations. For non-air
carrier operations, the regulatory
requirements for medical certification
do not vary based on the number of
passengers aboard the aircraft or the size
of the balloon. The FAA has long held
that a passenger who engages with an
aircraft operator in common carriage has
a higher expectation of safety and
oversight. The FAA notes that while
operators of smaller balloons generally
carry fewer passengers per year, the risk
to any individual passenger in a smaller
balloon is not significantly different
than the risk to which they are exposed
in a larger balloon.
The FAA does not concur with the
assertion that the NTSB safety
recommendations were specifically
directed toward the safety of larger
passenger-carrying balloons.
Recommendation A–17–034
recommends that the FAA ‘‘remove the
medical certification exemption in 14
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Code of Federal Regulations 61.23(b) for
pilots who are exercising their
privileges as commercial balloon pilots
and are receiving compensation for
transporting passengers.’’ The FAA
notes that while the NTSB directed the
recommendation towards operations
receiving compensation for transporting
passengers, the NTSB did not
distinguish between classes of operators
in terms of size or passenger carrying
capacity. Likewise, Congress included
no distinction based on size or
passenger-capacity in Section 318 when
it directed the FAA to remove the
exception from medical certification for
commercial balloon pilots.
Accordingly, this medical
certification requirement will apply to
all holders of a commercial pilot
certificate with a lighter-than-air
category balloon class rating when
exercising the privileges of that
certificate in a balloon for compensation
or hire, unless that person is conducting
flight training, regardless of the size of
the aircraft or the number of passengers
carried.
B. Application of Rule to Commercial
Balloon Operations Without Passengers
The medical certification requirement
in this final rule does not provide an
exception to commercial operations not
involving the carriage of passengers.
Several commenters contended that
commercial balloon operations that do
not involve the carriage of passengers
for compensation or hire should not
require the PIC to hold a second-class
medical certificate. BFA stated that
‘‘there is no more risk to the flying
public in these activities, which include
commercial advertising contract flying
and special shape flying, than private
ballooning for sport.’’ The BFA strongly
opposed the inclusion of commercial
operations that do not conduct paying
passenger activities.
Commenters to the proposed rule
provided multiple examples of how
commercial operations frequently occur
without passengers. For example, one
commenter operates a one-of-a-kind
specially shaped balloon that is hired by
events for its uniqueness and
popularity. The city of Albany Parks &
Recreation noted that the proposed rule
would have a significant impact on their
ability to recruit pilots for their annual
festival. This commenter noted that ‘‘the
second-class medical requirement may
significantly impact the number of
balloons available for the festivals as
some pilots may decide to forego the
expense and trouble.’’
Another commenter said that many
companies incorporate balloons into
their marketing strategies, noting that
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these balloons are utilized as portable
billboards to either be displayed while
tethering on the ground or while
conducting promotional flights during
balloon festivals. One commenter
observed that some events exclude
private pilots from attending ‘‘since they
interpret that getting your room, show
up money or propane as
‘compensation’.’’ 10
Section 318 of the FAA
Reauthorization Act of 2018 directed the
FAA to ‘‘revise section 61.3(c) of title
14, Code of Federal Regulations (relating
to second-class medical certificates), to
apply to an operator of an air balloon to
the same extent such regulations apply
to a pilot flightcrew member of other
aircraft.’’
The FAA proposed this rule
specifically to implement section 318 of
the FAA Reauthorization Act of 2018.
Accordingly, the FAA proposed a
requirement that any person exercising
the privileges of a commercial pilot
certificate for compensation or hire in a
balloon, except when conducting flight
training, hold a second-class medical
certificate. The proposed rule made no
distinction regarding whether the
affected operation involved the carriage
of passengers for compensation or hire,
instead describing affected operations as
including, but not limited to, operations
for purposes of passenger sightseeing,
aerial advertising, maintenance test
flights, and research and development
flights.
FAA regulations require a secondclass medical certificate for all
commercial pilots of fixed-wing aircraft
and rotorcraft, regardless of whether the
operation involves the carriage of
passengers. Further, the statute does not
allow an exception for commercial
operations not involving the carriage of
passengers. Therefore, in accordance
with the express statutory language in
Section 318 of the FAA Reauthorization
Act of 2018, the FAA will require all
commercial balloon pilots to hold a
10 The FAA notes that compensation for display
of an aircraft from the ground does not constitute
a commercial operation. See Legal Interpretation to
Karen Torres (March 17, 2011). A balloon operator
may be compensated for attending an event and
displaying a balloon, including inflating the
envelope while the aircraft remains on the ground.
An operation is generally considered a commercial
operation when the operator is compensated to fly
the aircraft, with or without passengers. Further, a
balloon pilot may exercise private pilot privileges
to fly the balloon at an event he or she received
compensation for attending, provided the
compensation was not provided with the
expectation that the operator fly the balloon during
the event. See Legal Interpretation to Tucker
Comstock (Sept. 8, 1977); see also Legal
Interpretation to Gary Bruce Eaton (Dec. 7, 2012).
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second-class medical certificate, as
proposed in the NPRM.11
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C. Drug and Alcohol Testing
As discussed in the NPRM, the FAA
considered whether to expand the
definition of an operator under § 91.147
to include commercial balloon
operations carrying passengers for
compensation or hire. Doing so would
have created a new requirement for such
operators to obtain a Letter of
Authorization (LOA) from the FAA,
which would include a requirement to
implement drug and alcohol testing
programs in accordance with 14 CFR
part 120. The FAA specifically sought
comment on whether drug and alcohol
testing should be required for
commercial balloon operations.
Several commenters noted that the
rule is insufficient because it lacks drug
and alcohol testing. Most of the
commenters expressing this sentiment
used it as a rationale for opposing the
rule, pointing out that holding a medical
certificate does not compel a person to
be randomly tested for prohibited
substances and, as such, would have
done little to prevent the Lockhart,
Texas and Albuquerque, New Mexico 12
accidents.
The FAA considered this alternative
and concluded that such a requirement
goes beyond the scope of the statutory
mandate. The FAA established the
§ 91.147 provision in the 2007 National
Air Tour Safety Standards final rule 13
following a pattern of accidents in
powered aircraft. In that rule, the FAA
specifically excluded balloon
operations. The FAA notes that any
future revisions of National Air Tour
Safety Standards will require a riskbased assessment of need based on
available safety data.
While medical certification under part
67 does not include a drug and alcohol
testing component, it does require the
applicant to authorize the FAA to access
the applicant’s National Driver Register
(NDR) records. The NDR Problem Driver
Pointer System (PDPS) identifies
records on individuals whose privilege
to operate a motor vehicle has been
revoked, suspended, canceled or
denied, or who have been convicted of
11 The FAA excluded flight training because the
legislation directed that the FAA to apply medical
certification to commercial balloon pilots to the
same extent as commercial pilots of other aircraft.
The FAA has historically treated medical
certification for persons conducting flight training
different from other commercial operations.
12 On June 26, 2021, the pilot and 4 passengers
of a balloon were killed in an accident in
Albuquerque, New Mexico. The accident is
currently under investigation by the NTSB. (NTSB
Accident No. WPR21FA242).
13 72 FR 19382, Apr 18, 2007.
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serious traffic-related offenses. Even if
the applicant fails to disclose these
convictions on the medical certificate
application, the FAA receives a report
from the NDR, providing an additional
safeguard and mechanism for verifying
the accuracy of the information
provided by the airman.
In the case of the pilot of the Lockhart
accident, the accident pilot had a 20year history of drug and alcohol
convictions. Even if the airman had
omitted his history of traffic offenses on
an application for a medical certificate,
the FAA would likely have been made
aware of the motor vehicle actions from
NDR records and had the opportunity to
deny the application for a medical
certificate based on evidence of
substance dependence or substance
abuse, in accordance with
§§ 67.207(a)(4), 67.207(b), 67.107(a)(4),
and 67.107(b).
Accordingly, this final rule does not
set forth a regulatory requirement for
commercial balloon operators and pilots
to implement a drug and alcohol testing
program at this time.
D. Miscellaneous Issues
Whether Commercial Ballooning Poses a
Risk Significant Enough To Warrant
Additional Regulation
Multiple commenters stated that
ballooning is an insignificant activity in
the National Airspace System (NAS)
and should not be subject to additional
regulation.
The FAA does not consider
commercial ballooning an insignificant
activity. The FAA notes that the
Lockhart, Texas and Albuquerque, New
Mexico accidents demonstrate that
ballooning is not insignificant, and the
potential risk for catastrophic accidents
is not insignificant. While the FAA
concurs with commenters who asserted
that balloon operations represent a
small percentage of the total operations
in the NAS, the FAA notes that balloons
are frequently used for carrying
passengers for compensation and
present a risk that justifies a level of
medical oversight equivalent to that of
pilots of powered aircraft for certain
operations such as commercial
sightseeing operations. Further, the
NTSB and Congress have identified this
risk and called on the FAA to extend the
requirements for medical certification to
balloon pilots operating for
compensation or hire.
Effects to the Industry Due to the Cost
and Ability To Comply With the Rule
A number of commenters expressed
concerns that the final rule would
greatly reduce the number of balloon
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pilots due to costs associated with
obtaining a second-class medical
certificate. The FAA acknowledges that
in some cases, some commercial
operators—particularly low-volume
commercial operators—may opt to no
longer conduct commercial operations
due to the cost of obtaining a medical
certificate outweighing the marginal
economic benefit of conducting
operations for compensation. While
some pilots may leave the industry,
other balloon pilots may opt to enter the
commercial balloon industry to fill the
void left by departing commercial
pilots.
While the FAA does not expect a
significant decrease in the availability of
balloon pilots, changes in supply of
balloon pilots could affect prices as
well. The regulatory economic analysis
does not quantify any potential changes
in consumer and producer surplus from
changes in supply. If the rule effectively
screens out certain individuals for
disqualifying medical conditions as
intended, any potential adverse effects
on individual applicants should be
offset by the safety gains to the public.
Nevertheless, the cost to obtain a
second-class medical certificate is
unlikely to be the sole reason to cause
a commercial balloon pilot to
discontinue commercial operations. The
FAA estimates the cost per pilot to
obtain a second-class medical certificate
would be between $160 and $685
annually, depending on whether a
special issuance would be necessary.
This amount equates to about 0.06% to
0.37% of average annual revenues for
small entities.14
The opportunity cost (including the
time and fees) of seeking a second-class
medical certification for some pilots
may outweigh the monetary gains of
operating commercially, resulting in
some pilots opting not to seek medical
certification. The FAA does not have
sufficient information to predict how
the supply of commercial balloon pilots
would change as a result of this rule.
Multiple commenters stated that
following the Heart of Texas accident,
the ballooning insurance providers have
required all commercial pilots flying
balloons larger than 120,000 cubic feet
to hold a second-class medical
certificate. The revised regulatory
economic analysis has factored in
roughly 8.8% out of 4,869 commercial
pilots with balloon class ratings who
probably fall into this group, based on
2021 data from the Airmen Certification
Database. The intent of the rule is to
provide safety protection for all balloon
14 See Final Regulatory Flexibility Analysis
discussed later in this preamble.
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passengers, not just passengers flying
with companies operating larger
balloons.
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Treatment of Balloon Operations for
Compensation or Hire as Commercial
Aviation Operations
Commenters acknowledged that,
while they do receive compensation,
they do not consider themselves
‘‘commercial’’ in a traditional sense.
Many commenters used examples of
being offered limited compensation in
the form of lodging or fuel to participate
in ballooning events, often without the
expectation to carry passengers. Several
commenters noted that many
commercial operators only occasionally
conduct operations for compensation or
hire and do so to subsidize the cost of
ballooning.
The concept of conducting
commercial operations for
compensation or hire for the purpose of
defraying the cost of flying is not unique
to ballooning. The FAA has long held
that when a passenger responds to an
offer made by an operator to the public
to provide an aeronautical service in
exchange for receipt of anything of
value that is contingent on the pilot
operating the aircraft, the public expects
a higher level of oversight and safety
assurance. The FAA does not delineate
the volume of passenger activity for
purposes of defining medical eligibility
requirements.
The FAA notes that there are certain
circumstances in which a pilot may
accept limited compensation for
operating an aircraft when exercising
private pilot privileges. These
exceptions are enumerated in
§ 61.113(b) through (h). Balloon pilots
exercising private pilot privileges may
share expenses with passengers under
§ 61.113(c), provided those expenses are
limited to items such as fuel, oil, airport
expenditures, or rental fees. Further, a
pilot sharing expenses under § 61.113(c)
may not pay less than the pro rata share
of the operating expenses, and must not
engage in common carriage by ‘‘holding
out’’ to the public.
Suggestions for Alternative Methods of
Establishing Medical Eligibility
Several commenters suggested
alternative methods of meeting medical
eligibility requirements. A few
commenters suggested the FAA should
allow BasicMed in lieu of a second-class
medical certificate for commercial
balloon operations. Multiple
commenters proposed to allow state
division of motor vehicle (DMV) record
checks or NDR checks in lieu of medical
certificate requirements. Finally,
commenters suggested the medical
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certificate requirement not be applied to
existing commercial pilot certificate
holders.
The FAA does not support allowing
balloon pilots exercising commercial
pilot privileges to establish medical
eligibility under BasicMed. Section 318
of the 2018 FAA Reauthorization Act
directed the FAA to revise regulations
relating to second-class medical
certificates to apply to commercial
balloon pilots to the same extent such
regulations apply to pilots of other
aircraft.
Section 2307 of the FAA Extension,
Safety, and Security Act of 2016
directed the FAA to issue or revise
regulations to establish physical
examination and education
requirements, resulting in BasicMed.
BasicMed was intended by statute to
serve as an alternative means of
establishing medical eligibility for
limited non-commercial operations by
persons exercising the privileges of a
private pilot certificate. Section 2307
specifically excluded operations
conducted for compensation or hire and
specifically prohibited passenger or
property carried for compensation or
hire.
The FAA does not concur with the
suggestion that the FAA implement
motor vehicle record checks for
commercial balloon pilots instead of a
second-class medical certificate
requirement. A motor vehicle record
alone provides an incomplete picture of
a person’s medical history and does not
provide enough information to
determine whether that person has a
medical condition that would prevent
him or her from safely operating an
aircraft. Further, the medical eligibility
requirements to hold a driver’s license
are not consistent from state to state
and, therefore, may not be sufficient to
ensure the safety of pilots operating a
balloon carrying passengers for
compensation or hire.
When applying for a medical
certificate in MedXPress, an applicant
authorizes the NDR, through a
designated State Department of Motor
Vehicles, to furnish to the FAA
information pertaining to his or her
driving record consistent with 49 U.S.C.
30305(b)(3). The NDR PDPS identifies
records on individuals whose privilege
to operate a motor vehicle has been
revoked, suspended, canceled or
denied, or who have been convicted of
serious traffic-related offenses.
NDR checks are just one part of the
medical screening process and are
insufficient alone to screen for
disqualifying medical conditions. A
person’s motor vehicle arrest record
reveals only the times an individual was
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71223
arrested while operating a motor vehicle
under the influence of alcohol or
another drug. Further, an NDR check
alone would not reveal evidence of a
substance abuse problem if the
applicant does not operate a motor
vehicle while intoxicated. Most
substantially, an NDR check alone
would not uncover the myriad of
potential non-substance abuse-related
medical conditions that are evaluated in
conjunction with a medical examination
conducted under part 67.
The FAA does not consider the
concept of excluding existing
commercial pilot certificate holders
from having to comply with a medical
certificate requirement to be in the
interest of flight safety. Existing
commercial pilot certificate holders
pose a similar medical risk to the NAS
as new commercial pilot certificate
holders. Such an exception for existing
commercial pilots would remove this
group from the safety benefit of medical
certification without any additional
medical risk mitigation.
Insurance Requirements
Commenters contended the rule is
unnecessary because commercial
insurers already require medical
certificates. One commenter reported
that insurance companies now require
second-class medical certification for
pilots of large passenger-carrying hot air
balloons. The commenter added that the
insurance requirement makes the
proposed rule redundant and
unnecessary.
Commercial balloon operators are not
required by regulation to be insured, so
withholding a regulatory requirement to
hold a medical certificate and relying on
insurance companies and operators to
comply voluntarily with the insurance
requirements would be insufficient
alone to address the need for additional
oversight of airmen conducting balloon
operations for compensation or hire.
The FAA notes that commercial
insurance requirements are not uniform
and apply only to operators who choose
to obtain such coverage and comply
with the policy conditions. Further,
insurance requirements for a medical
certificate are not universal. Insurance
providers typically require medical
certificates for the pilots of commercial
operations that are larger in terms of
passenger capacity and number of
operations.
Focus on FAA Enforcement
Commenters noted that the FAA
should focus on enforcement of existing
rules and/or surveillance for balloon
operators, rather than put forward new
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regulations requiring medical
certification.
The FAA establishes regulatory
standards to ensure safe operations in
the NAS. The FAA’s system is largely
based on, and dependent upon, a
culture of compliance with regulatory
standards within the regulated
community. FAA personnel use
compliance, administrative, or legal
enforcement actions to uphold the
public’s safety interest in ensuring that
all regulated persons conform their
conduct to statutory and regulatory
requirements.
The FAA applies risk-based analysis
to determine how, when, and where
oversight and surveillance activities
take place. The Integrated Oversight
Philosophy allows both certificate
holders and non-certificate holders to
work with the FAA to ensure corrective
action is appropriate and aims to
address the root cause(s) of safety
issues. Using this philosophy, the FAA
oversight focus has been on existing
surveillance, education, and awareness
to the entire balloon industry to reduce
the accident rate and improve balloon
safety.
Comparison of Balloon and Glider
Operations
Multiple commenters noted that the
FAA stated in the NPRM that gliders
were out of scope because they carried
only 1 or 2 passengers. The commenters
argued that based on the FAA’s
rationale, balloons that carry 2
passengers or less should be excluded as
well.
The FAA proposed this rule
specifically to implement section 318 of
the FAA Reauthorization Act of 2018
and respond to NTSB Safety
Recommendation A–17–034, which
recommended that the FAA remove the
medical certification exemption in part
61 for commercial balloon pilots
receiving compensation for transporting
passengers. Section 318 directed the
FAA to revise regulations as they relate
to operators of balloons. The FAA
considered whether glider operations
conducted for compensation or hire
should be included in the scope of this
rule. The FAA ultimately determined
that as a category of aircraft, the safety
record and general operational risk
profile of gliders carrying passengers for
compensation or hire did not warrant
further regulatory oversight concerning
the medical suitability of commercial
glider pilots.
Efficacy of Medical Certificate
Requirement
Several commenters expressed doubt
that a medical certification requirement
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will reduce the accident rate of
commercial balloon operations.
Commenters noted that inflight medical
incapacitation is rare, and the FAA
medical standards do not address the
operational considerations of ballooning
versus other aircraft. They contended
the FAA lacks sufficient data to support
a medical certification requirement.
Further, they contended that a medical
certificate requirement would not have
affected the outcome of the two most
recent significant fatal commercial
accidents in Lockhart, Texas and
Albuquerque, New Mexico.
The FAA is statutorily mandated to
establish standards necessary to
determine that an airman is physically
able to perform the duties related to the
privileges of their pilot certificate. See
49 U.S.C. 44703. Further, the FAA is
statutorily mandated to revise
regulations related to second-class
medical certificates to apply to
commercial balloon pilots.
In regards to whether medical
standards address the operational
considerations of ballooning, the FAA
notes that medical certification
standards address multiple dimensions
of medical qualification, including
medical factors that could diminish
judgment and decision-making in
addition to sudden physical
incapacitation. While the standards do
not apply to any specific type of aircraft
operation, the standards do address
general categories of medical
considerations that are applicable to
balloon operations. These categories
include: vision; ear, nose, and throat;
equilibrium; mental; neurological;
cardiovascular; and general health. The
standards established under part 67 are
minimum standards. However, the
Federal Air Surgeon does have the
discretion to authorize special issuance
of a medical certificate or a Statement of
Demonstrated Ability (SODA), which
offers flexibility for the FAA to issue a
medical certificate based on the
individual circumstances of an
applicant.
As noted in the proposed rule, the
2016 Lockhart accident served as an
example of how a lack of medical
oversight allowed the pilot to continue
to operate a balloon for compensation or
hire in spite of a questionable medical
history. While instances of sudden
inflight incapacitation are rare, there are
documented cases of events occurring.
Medical incapacitation incidents are
often not reported if no accident
occurred. When an accident does occur,
it can be difficult to pinpoint whether
medical issues of the pilot were a factor,
as evidence is often limited to the pilot’s
available medical records, postmortem
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Fmt 4700
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toxicology and autopsy reports.
Consequently, it is difficult to quantify
the impact of medical factors on
aviation safety.
While medical certification cannot
completely mitigate the risk of an
accident due to a medical condition of
the pilot, the public holds an
expectation for a higher level of
operational oversight when the flight is
conducted for compensation or hire.
One method the FAA has to accomplish
this objective is medical certification.
Medical Certificates for All Balloon
Operations
One commenter suggested that
medical certificates should be required
for all balloon operations.
The FAA will not extend the medical
certificate requirement to balloon pilots
exercising private or sport pilot
privileges. Non-commercial balloon
operations are among the lowest-risk
operations in the NAS and do not
warrant the additional regulatory
burden of medical certification
requirements. While pilots exercising
the privileges of a private pilot or sport
pilot certificate in a balloon are not
required to hold a medical certificate,
they must comply with the 14 CFR
61.53(b) requirement to abstain from
operating an aircraft while that person
knows or has reason to know of any
medical condition that would make that
person unable to operate in a safe
manner. In addition, these pilots have
fewer privileges, and in the case of sport
pilots, more operational restrictions,
than a commercial pilot holding his or
her flight services out to the public for
compensation. The FAA has determined
that compliance with a prohibition from
operating an aircraft during a medical
deficiency sufficiently mitigates the risk
of an accident in a balloon due to a
medical-related issue in an operation
exercising private or sport pilot
privileges.
E. Effective Date
Commenters recommended the FAA
should delay the effective date of the
medical certificate requirement
provision beyond 180 days. Most of
those comments suggested that the rule
take effect one year after publication.
Commenters cited a lack of Aviation
Medical Examiners (AMEs), the ongoing
COVID–19 public health emergency,
and delays in processing applications by
the FAA.
Multiple commenters expressed
concern that there are delays in
processing medical certificate
applications if a special issuance is
required, preventing applicants from
complying with the rule within 180
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days. The BFA asserted that the process
of obtaining a special issuance is
burdensome and may take months, or in
some cases years, to obtain a medical
certificate.
The FAA proposed in the NPRM that
compliance with the medical certificate
requirement become effective 180 days
from publication of the final rule. This
would provide sufficient time for the
majority of affected persons to comply
with this rule by obtaining a medical
certificate prior to the effective date. For
reasons explained below, the medical
certificate requirement will go into
effect on May 22, 2023, 180 days after
publication of this rule.
Based on historical data, the FAA
estimates that over 95% of applicants,
including those who need a special
issuance, will have a disposition within
150 days. Approximately 1% of all
applicants for FAA medical certificates
are issued a denial. Of those denials,
95% of the final dispositions resulted
from a lack of response to FAA requests
for additional information. Only 4% of
applicants take over 150 days for
certification. Many of these individuals
have medical conditions, which require
mandatory periods of observation to
demonstrate stability and/or allow for
the risk of recurrence to diminish.
The FAA acknowledges that pilots
with certain medical conditions may be
required to obtain additional
evaluation(s) prior to issuance of a
medical certificate. The FAA
recommends that affected airmen,
especially those with known health
conditions, initiate the process to apply
for a medical certificate in a timely
manner, taking into consideration the
time needed to obtain relevant medical
information and the time necessary for
the FAA to review. Individuals who
delay applying for a medical certificate
risk loss of some operating privileges
due to the inability to comply with the
requirement to hold a second-class
medical certificate.
Several commenters noted that the
ongoing COVID–19 public health
emergency would affect the ability of
balloon pilots to obtain a medical
certificate within 180 days. These
commenters noted that there is a limited
availability of health care workers due
to COVID–19.
Commenters did not provide evidence
that COVID–19 continues to limit the
access to AMEs. While initial response
to COVID–19 did result in significant
restrictions and more limited access to
healthcare facilities and physicians,
access to AMEs has since returned to
pre-pandemic levels.
Multiple commenters noted that
balloon pilots never had medical
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certification requirements prior to this
rule. BFA noted that a significant
proportion of commercial balloon pilots
are older and at an age where they likely
have one or more medical conditions
requiring a special issuance.
Accordingly, commenters suggested
that, as a population, balloon pilots will
require more time to obtain a medical
certificate.
The FAA notes that, as a group, older
pilots are more likely to have medical
conditions that need additional
evaluation. The FAA does not have
evidence to support the assertion that
balloon pilots are as a population older
than other pilots.
Multiple commenters noted a lack of
available AMEs. One commenter noted
that there was only one AME serving
Albuquerque, New Mexico.
The FAA notes that at the time of
publication of the final rule, AMEs were
practicing at 2,056 locations across the
United States, including 13 locations in
New Mexico. Of the 11 AMEs practicing
at 13 locations in New Mexico, six were
practicing in Albuquerque.15
In the NPRM, the FAA proposed that
the two miscellaneous amendments be
made effective 30 days after publication
of the final rule. No comments were
received regarding the effective date of
either miscellaneous amendment.
Accordingly, both provisions will
become effective on December 22, 2022,
30 days after publication of this rule.
F. Comments Regarding Miscellaneous
Amendments
The FAA received generally
supportive comments from individual
commenters and the Aircraft Owners
and Pilots Association in regard to the
two miscellaneous amendments in the
NPRM. The proposal to remove the
requirement for a medical certificate in
order to act as PIC in a special medical
flight test received two supporting
comments. Accordingly, the FAA is
implementing the amendments as
proposed. To allow persons to act as PIC
during special medical flight tests, the
FAA is amending § 61.3(c)(2) by adding
new paragraph (xv), which allows
persons to act as PIC during authorized
special medical flight tests without
holding a medical certificate. The FAA
also adds a parallel provision in
§ 61.23(b)(12).
The proposal to extend BasicMed to
persons serving as required flightcrew
members but not acting as PIC received
ten supporting comments. Accordingly,
the FAA is implementing the
15 FAA Designee Management System, as of Oct
17, 2022. https://designee.faa.gov/#/
designeeLocator.
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71225
amendments as proposed. Specifically,
the FAA is amending §§ 61.3(c)(2)(xiv),
61.23(c)(3)(i)(C) through (E), 61.113(i),
68.3(a) and, 68.3(b), and 68.9(a) by
expanding the requirements to include
required pilot flightcrew members.
V. Regulatory Notices and Analyses
Federal agencies consider impacts of
regulatory actions under a variety of
executive orders and other
requirements. 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 the
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. 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 that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100,000,000 or more
(adjusted annually for inflation) in any
one year. The current threshold after
adjustment for inflation is $165 million,
using the most current (2021) Implicit
Price Deflator for the Gross Domestic
Product.
In conducting these analyses, the FAA
has determined that this rule: will result
in benefits that justify costs; is not a
‘‘significant regulatory action’’ as
defined in section 3(f) of Executive
Order 12866; may have a significant
economic impact on a substantial
number of small entities; will not create
unnecessary obstacles to the foreign
commerce of the United States; and will
not impose an unfunded mandate on
State, local, or tribal governments, or on
the private sector.
A. Regulatory Impact Analysis
Benefits and Costs of This Rule
The final rule will generate costs for
balloon pilots to obtain a second-class
medical certificate and for some pilots
to seek authorization through special
issuance. There is a separate cost for the
FAA to implement this requirement in
terms of reviewing and processing
submissions related to medical
certification. The FAA estimates the
present value of total costs over ten
years is $2.4 million to $16.3 million
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with a mid-estimate of $6.9 million at a
7 percent discount rate, and $2.9
million to $19.9 million with a midestimate of $8.4 million at a 3 percent
discount rate. The FAA estimates the
annualized costs over ten years is $0.3
million to $2.3 million with a midestimate of $1.0 million at a 7 percent
discount rate and $0.3 million to $2.3
million with a mid-estimate of $1.0
million at a 3 percent discount rate.
While lack of data on the effectiveness
of the rule prevents quantification of
benefits, the FAA anticipates the rule
will enhance safety of commercial
balloon operations, including reduced
risks of accidents, fatalities, and injuries
caused by medical impairment of
balloon pilots. The FAA estimates that
it would take between 0.3 to 2.8 averted
fatalities in the next ten years for the
benefits to breakeven with the costs of
this rule.
In addition to the requirement for
commercial balloon pilots to hold a
second-class medical certificate, the rule
made two miscellaneous amendments.
The first amendment addresses certain
inconsistencies in current regulations
for conducting special medical flight
tests and the second amendment
addresses inconsistencies regarding who
may operate under BasicMed. The FAA
does not quantify the effects of the two
miscellaneous amendments, but
anticipates there will be minor cost
savings. By allowing persons to receive
special medical flight tests under part
67 without holding a medical certificate,
the FAA aviation safety inspector will
no longer have the burden of assuming
the responsibility as PIC while
conducting a medical test flight with an
applicant. This also eliminates the
inconsistency of both having to hold a
medical certificate for the purposes of
receiving a special medical flight test
and needing the special medical flight
test to obtain a medical certificate. The
amendment to extend BasicMed
eligibility to other required pilot
flightcrew members reduces the burden
for those pilots not acting as PIC of
having to hold a medical certificate
under current regulations and holds
them to the same standard as those
pilots acting as PIC under BasicMed.
This may also result in more pilots
seeking opportunities to serve as a
safety pilot by lowering the medical
certificate barrier without compromising
safety. It also increases the number of
pilots eligible to serve as safety pilot,
easing the burden of pilots with
instrument privileges conducting flights
to meet recent flight experience
requirements and consequently
VerDate Sep<11>2014
16:01 Nov 21, 2022
Jkt 259001
increasing overall safety in the national
airspace system.
Statement of Need
This rulemaking addresses the need
for additional oversight of airmen
conducting balloon operations for
compensation or hire by implementing
the statutory mandate under the
Commercial Balloon Pilot Safety Act of
2018 and NTSB Safety Recommendation
A–17–034 to extend second-class
medical certification requirements to
operators of balloons. As discussed
elsewhere in this document, the 2016
Heart of Texas accident highlights the
potential for a pilot’s medical condition
to pose safety risks, which are not
necessarily less than that of powered
aircraft sightseeing operations that
require at least a second-class medical
certificate (e.g., commercial
transportation of skydivers, banner
towing, or aerial photography).
Following the 2016 Heart of Texas
accident, there have been voluntary
efforts by the industry to raise the
standard for balloon pilots, notably
through the Envelope of Safety Program.
While incentives to ensure a certain
level of safety exist in the private market
for commercial balloon operations, it is
unlikely in the absence of federal
regulation that all balloon pilots would
choose to comply with the requirements
of a second-class medical certificate. At
the same time, consumers may be
insufficiently aware of the risks
associated with balloon pilots operating
under a lower standard to demand full
compliance. Therefore, this rulemaking
is necessary to achieve a higher level of
safety for commercial balloon
operations.
Data and Assumptions
This section summarizes key data
sources and assumptions used
throughout the analysis:
• Costs and benefits are estimated
over 10 years.
• Costs and benefits are presented in
2021 dollars.
• The present value discount rate of
seven and three percent is used, as
required by the Office of Management
and Budget.
• The cost for a medical examination
fee with an AME is in the following
range: Low = $100, Mid = $150 or High
= $200.16
• The hourly rate of a pilot (VPT)
exercising their commercial balloon
rating varies greatly. Therefore, the FAA
16 According to FAA subject matter experts and
Phoenix East Aviation, https://www.pea.com/blog/
posts/the-faa-medical-exam-common-questions/,
the cost per medical exam ranges from $100 to
$200.
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Fmt 4700
Sfmt 4700
used the following hourly wages: Low =
$15, Mid = $31.50 or High = $48.17
• Vehicle operating cost per mile
(VOC) as determined by the Internal
Revenue Service (IRS) is $0.16.18
• The FAA assumes 1.5 hours to
complete the MedXPress form.19
• The FAA assumes 1 hour to
complete a medical examination.
• The FAA assumes 1 hour of travel
time to and from an AME’s office.
Affected Entities
At the time of writing, the FAA used
2021 data from the Airmen Certification
database to identify pilots certificated as
commercial balloon pilots. There are
currently 4,869 commercial pilots with
balloon class ratings. During the public
comment period, the FAA learned that
most insurance providers have required
commercial pilots flying balloons larger
than 120,000 cubic feet to hold a
second-class medical certificate. FAA
sources indicate that of the 4,869
commercial pilots with balloon class
ratings, 427 balloon pilots
(approximately 8.8% of total
commercial balloon pilots) fall into this
category.20 Therefore, the updated
estimated number of balloon pilots
without medical certification in 2021 is
4,442.
This balloon class rating does not
have an expiration date, and unlike
certain other pilot ratings, a person
exercising the privileges of a balloon
class rating is not required to hold a
valid first-, second-, or third-class
medical certificate. Because of this,
there is uncertainty in the number of
commercial balloon pilots actively
exercising commercial pilot privileges.
For this reason, the FAA produced a
low, mid, and high-range estimate of
how many pilots would possibly be
affected by this final rule.
In addition to the current number of
certificated pilots with a commercial
balloon rating, the FAA gathered data
from the last 14 years to estimate an
average growth of newly certificated
commercial balloon pilots per year.
Over the course of the last 14 years,
from 2007 through 2020, there was, on
17 According to the FAA subject matter experts,
responses from the Balloon Federation of America
and online sources, the FAA estimates a
commercial balloon pilot earns from $15 to $48 an
hour. Online source: https://www.jobmonkey.com/
uniquejobs3/hot-air-balloon-pilot-jobs/.
18 https://www.irs.gov/newsroom/irs-issuesstandard-mileage-rates-for-2021. Accessed on April
21, 2021.
19 This estimate is consistent with FAA’s
estimated burden hours associated with the
MedXPress form 8500–8 approved under OMB No.
2120–0034.
20 FAA Airman Registry internal analysis as of
July 2021.
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average, 56 newly certificated
commercial balloon pilots per year.
As mentioned earlier, there is
uncertainty with the number of active
pilots exercising their commercial
balloon privileges. The FAA assumes a
low estimate of 20%, a mid-estimate of
50% and a high estimate of 100% of the
4,442 impacted commercial pilots with
a balloon class rating. Table 1 displays
the potential number of airmen that
would be affected by the final rule over
the course of ten years. Note that in the
first year and thereafter, the number of
impacted commercial pilots includes an
additional 56 newly certificated
commercial balloon pilots each year to
account for growth over time.
Corresponding to the number of active
balloon pilots is the number of expected
application submissions for secondclass medical certificates each year.
TABLE 1—LOW, MIDDLE AND HIGH ESTIMATES OF ACTIVE BALLOON PILOTS
Year
Low
Middle
High
1 ........................
2 ........................
3 ........................
4 ........................
5 ........................
6 ........................
7 ........................
8 ........................
9 ........................
10 ......................
944
1,000
1,056
1,112
1,168
1,224
1,280
1,336
1,392
1,448
2,277
2,333
2,389
2,445
2,501
2,557
2,613
2,669
2,725
2,781
4,498
4,554
4,610
4,666
4,722
4,778
4,834
4,890
4,946
5,002
Total ...........
11,960
25,290
47,500
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Benefits
The benefits of this rule come from
the value of averted accidents
attributable to pilots operating
commercial balloons with medical
deficiencies. While under current
regulations, balloon pilots must comply
with § 61.53(b), which states that ‘‘a
person shall not act as pilot in
command, or in any other capacity as a
required pilot flight crewmember, while
that person knows or has reason to
know of any medical condition that
would make the person unable to
operate the aircraft in a safe manner,’’
the second-class medical certificate
requirement would provide greater
assurances of safety to balloon
passengers and other balloon operations
conducted for compensation or hire. By
requiring balloon pilots to undergo a
medical certification process, an AME
will have the opportunity to identify
potentially impairing medical
conditions and treatments thereof to
ensure sufficient mitigation of any
associated risks.
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16:01 Nov 21, 2022
Jkt 259001
To quantify the benefits from this
rule, it is necessary to: (1) forecast a
baseline level of accidents attributable
to medically impaired balloon pilots in
the absence of this rule and (2) estimate
the extent to which the medical
certification requirement effectively
reduces the risk. Based on the FAA’s
analysis of the NTSB accident database
during the ten-year period from 2010–
2020, the FAA finds that there has been
one accident, the Heart of Texas
accident, where the medical condition
of the pilot was a factor. The Heart of
Texas accident resulted in 16 fatalities.
The commercial pilot and all 15
passengers were killed, and the balloon
was destroyed by impact forces and
post-crash fire. For an accident of this
magnitude, the FAA estimates that the
social cost associated with the loss of
life alone is $185.6 million using a value
of statistical life of $11.6 million.21
Additional costs of a similar accident
would include non-fatal injuries, the
value of property loss and damage as
well as the cost of the accident
investigation and clean-up efforts.
However, the FAA currently does not
have enough information to monetize
those additional costs.
The FAA finds that the requirement
for a second-class medical certificate
could have prevented the Heart of Texas
accident if: (1) information made
available through the NDR database as
part of the medical review process
revealed the pilot’s history of drug- and
alcohol-related traffic offenses and
resulted in a disqualification, (2) a
medical review either prompted
effective treatment of or disqualification
for the pilot’s medical conditions
(depression and ADHD), or (3)
discussion of the use of certain
medications with an AME would have
resulted in the pilot adjusting his
behavior to avoid usage as a PIC during
a balloon operation.
Due to the infrequency of such events
and limitations in the available data, it
is difficult to quantify and monetize the
benefits of the rule. The FAA intended
to update its estimates of quantified
benefits for the final rule based on
additional information and data
identified during the comment period.
Specifically, the FAA requested
information and data, including
references and sources that could be
used to predict the number of similar
accidents that may occur in the future
and the number of accidents that may be
21 Value
of a statistical life in 2020 is $11.6
million. See DOT published values at https://
www.transportation.gov/office-policy/
transportation-policy/revised-departmentalguidance-on-valuation-of-a-statistical-life-ineconomic-analysis.
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Fmt 4700
Sfmt 4700
71227
averted by this rule. No additional data
was provided during the comment
period.
While the FAA describes the benefits
of the rule qualitatively, the FAA
expects that second-class medical
certification provides additional
screening to reduce the risk of
commercial balloon pilots operating
while medically impaired. In the section
below, the FAA conducted a breakeven
analysis to show that the monetized
benefits of the rule equates costs if it
averts 0.3 to 2.8 fatalities in the next ten
years.
Costs
This final rule results in private sector
costs to balloon pilots for obtaining a
second-class medical certificate,
including the opportunity cost of time
and fee for the medical exam with an
AME. Some balloon pilots with certain
health conditions that are otherwise
disqualifying may also incur the cost of
seeking a special issuance medical
certificate or SODA. The FAA incurs
costs for reviewing and processing the
applications (i.e., MedXPress forms) and
reviewing NDR information for a subset
of submissions.
Cost to Industry
(1) Costs of Obtaining Second-Class
Medical Certification
To obtain a second-class medical
certificate, an applicant needs to
complete the MedXPress form and a
medical exam with an AME. Because
the second-class medical certificate
expires 12 months after the date of the
medical exam, the FAA assumes that
pilots incur these costs on an annual
basis. The FAA estimates the
opportunity cost of time for each
applicant would include 1.5 hours to
complete the MedXPress form, 1 hour
for the medical examination, and 1 hour
of travel time to and from the exam for
a total of 3.5 hours.22 The FAA assumes
an hourly wage for a balloon pilot
ranges from $15 per hour to $48 per
hour, with a mid-estimate of $31.50 per
hour, to value time for the medical exam
and completing the MedXPress form.
For valuing travel time, the FAA uses an
estimate of $13.60 per hour consistent
with 2016 DOT guidance (in this
analysis, $14.44 was used for year
22 According to the ‘‘FAA Aerospace Medical
Certification Services Airman Satisfaction Survey,’’
(April 2017), over 60 percent of applicants traveled
between 0 and 25 miles one way for an exam with
an AME. (Retrieved from: https://www.reginfo.gov/
public/do/PRAViewDocument?ref_nbr=2019042120-007).
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mile for an average of 50 miles traveled
by vehicle to and from a medical exam,
which yields $8 for each exam. Taking
the sum of the value of time spent,
medical exam fee, and VOC, the FAA
estimates that each applicant incurs
costs of approximately $160 to $342,
with a mid-estimate of $251 to obtain a
second-class medical certificate each
year.
2021).23 Multiplying the value of time
by the amount of time spent yields an
estimate of $51.94 to $134.44, with a
mid-estimate of $93.19 per applicant in
opportunity cost of time. FAA subject
matter experts estimate the cost per
medical exam with an AME ranges from
$100 to $200, with an average of $150.
Additional costs arise from vehicle
operating costs (VOC) of 16 cents per
Table 2 below shows the range of total
costs to industry for obtaining a secondclass medical certificate. The FAA
derives the aggregated low, middle, and
high costs by multiplying the estimated
number of active pilots (low, middle,
high) as shown in Table 1 by the
corresponding low, middle, and high
costs per applicant by cost category.
TABLE 2—COSTS TO INDUSTRY BY CATEGORY TO OBTAIN SECOND-CLASS MEDICAL CERTIFICATION
Year
1 ...............
2 ...............
3 ...............
4 ...............
5 ...............
6 ...............
7 ...............
8 ...............
9 ...............
10 .............
Opportunity cost of time for exam,
MedXPress form, and travel
Low
Middle
$48,899
51,940
54,996
58,080
61,180
64,297
67,430
70,581
73,748
76,932
$211,875
217,412
222,965
228,559
234,169
239,795
245,439
251,100
256,777
262,471
Fee for medical exam
with AME
High
$604,081
612,240
620,414
628,650
636,903
645,173
653,460
661,764
670,084
678,421
Low
Middle
$94,400
100,000
105,600
111,200
116,800
122,400
128,000
133,600
139,200
144,800
$341,550
349,950
358,350
366,750
375,150
383,550
391,950
400,350
408,750
417,150
Vehicle operating
costs
High
Low
$899,600
910,800
922,000
933,200
944,400
955,600
966,800
978,000
989,200
1,000,400
$7,552
8,000
8,448
8,896
9,344
9,792
10,240
10,688
11,136
11,584
Middle
$18,216
18,664
19,112
19,560
20,008
20,456
20,904
21,352
21,800
22,248
High
$35,984
36,432
36,880
37,328
37,776
38,224
38,672
39,120
39,568
40,016
Note: The low, middle, and high estimates correspond to the low, middle, and high estimates of the number of active pilots and the range of
costs per applicant in each category of costs.
(2) Cost of Obtaining a Special Issuance
For applicants that do not initially
meet the requirements of a second-class
medical certification, there may be an
additional cost to seek a special
issuance medical certificate or SODA.24
The FAA assumes that an applicant
seeking special issuance would incur
the same costs and time of a secondclass medical certification as estimated
per applicant above. Based on the
historical rate of special issuances, the
FAA assumes that approximately 10
percent of affected balloon pilots would
seek special issuance, including SODAs.
Therefore, the FAA takes the sum of
costs in each cost category for obtaining
a second-class medical certification and
multiplies by 0.1 to obtain the total
industry cost for obtaining special
issuances. Table 3 below shows the
range of special issuance costs in each
year.
TABLE 3—TOTAL INDUSTRY COST FOR SPECIAL ISSUANCES
Total private sector costs for special issuance
Year
khammond on DSKJM1Z7X2PROD with RULES
Low
Middle
High
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$15,085
15,994
16,904
17,818
18,732
19,649
20,567
21,487
22,408
23,332
$57,164
58,603
60,043
61,487
62,933
64,380
65,829
67,280
68,733
70,187
$153,967
155,947
157,929
159,918
161,908
163,900
165,893
167,888
169,885
171,884
Present Value at 7% ....................................................................................................................
Annualized at 7% .........................................................................................................................
Present Value at 3% ....................................................................................................................
Annualized at 3% .........................................................................................................................
131,272
18,690
161,857
18,975
441,519
62,862
540,060
63,311
1,136,479
161,809
1,385,536
162,427
23 Department of Transportation. ‘‘The Value of
Travel Time Savings: Departmental Guidance for
Conducting Economic Evaluations Revision 2 (2016
Update). Available at: https://
www.transportation.gov/office-policy/
transportation-policy/revised-departmental-
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16:01 Nov 21, 2022
Jkt 259001
guidance-valuation-travel-time-economic. This
analysis assumes that the value of travel time grows
1% a year. Year 2021: 14.44.
24 The cost to obtain a SODA is included in the
estimated costs to obtain a special issuance medical
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Fmt 4700
Sfmt 4700
certificate. Based on the FY2022 data from
Aerospace Medical Certification Division, the FAA
estimates that on average approximately 0.02% (or
no more than one applicant a year) of medical
certificate applicants will require a SODA.
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Summary of Total Cost to Industry
The FAA estimates the present value
of total cost to industry associated with
obtaining a second-class medical
certification and special issuances to be
$1.4 million to $12.5 million, with a
mid-estimate of $4.9 million at a 7
percent discount rate and $1.8 million
to $15.2 million, with a mid-estimate of
$5.9 million at a 3 percent discount rate.
The annualized value of total cost to
industry are $0.2 million to $1.8 million
with a mid-estimate of $0.7 million at a
7 percent discount rate and $0.2 million
to $1.8 million with a mid-estimate of
$0.7 million at a 3 percent discount rate.
71229
In Table 4 below, the FAA shows these
total costs to industry for obtaining a
second-class medical certification and
special issuances in each year. The low,
middle, and high estimates correspond
to the range of estimates on the number
of affected pilots and costs associated
with obtaining medical certification.
TABLE 4—TOTAL INDUSTRY COSTS
Total cost to industry
Year
Low
Middle
High
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$165,936
175,934
185,949
195,993
206,056
216,138
226,237
236,356
246,493
256,648
$628,805
644,629
660,470
676,355
692,259
708,182
724,122
740,082
756,059
772,056
$1,693,632
1,715,419
1,737,223
1,759,096
1,780,987
1,802,897
1,824,825
1,846,772
1,868,737
1,890,721
Present Value at 7% ....................................................................................................................
Annualized at 7% .........................................................................................................................
Present Value at 3% ....................................................................................................................
Annualized at 3% .........................................................................................................................
1,443,990
205,592
1,780,422
208,720
4,856,705
691,486
5,940,655
696,426
12,501,274
1,779,900
15,240,897
1,786,698
Costs to FAA To Implement
Requirement for Second-Class Medical
Certification for Balloon Pilots
(1) FAA Cost of MedXPress Review and
Processing
The FAA incurs costs associated with
reviewing and processing applications
submitted through MedXPress. Based on
internal FAA data on total personnel
costs and benefits attributable to labor
hours spent on review of airmen
medical certification in FY 2019
through FY 2021, the FAA estimates an
average cost of $30 to review and
process each application. In Table 5
below, the Agency derives the FAA cost
to review applications in each year
using the estimated range for the
number of submissions based on the
forecasted number of active balloon
pilots in each year.
TABLE 5—FAA COSTS TO REVIEW AND PROCESS APPLICATIONS
FAA costs for review and processing
Year
khammond on DSKJM1Z7X2PROD with RULES
Low
Middle
High
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$27,944
29,601
31,259
32,917
34,574
36,232
37,890
39,547
41,205
42,863
$67,402
69,060
70,717
72,375
74,033
75,690
77,348
79,006
80,663
82,321
$133,146
134,804
136,462
138,119
139,777
141,435
143,092
144,750
146,408
148,065
Present Value at 7% ....................................................................................................................
Annualized at 7% .........................................................................................................................
Present Value at 3% ....................................................................................................................
Annualized at 3% .........................................................................................................................
242,207
34,485
298,552
34,999
519,347
73,943
635,141
74,458
981,108
139,688
1,195,954
140,202
(2) FAA Cost of Special Issuance Review
A MedXPress application that
requires a special issuance medical
certificate is deferred to the Aerospace
Medical Certification Division (AMCD)
for further consideration. Based on FAA
internal data on personnel
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16:01 Nov 21, 2022
Jkt 259001
compensation and benefits attributable
to labor hours spent on reviewing and
processing special issuance medical
certificates in FY 2019 through FY 2021,
the FAA estimates an average cost of
approximately $126 per special issuance
review. The table below displays the
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Fmt 4700
Sfmt 4700
FAA cost for special issuance review
assuming that 10 percent of the
applicants do not initially qualify for
second-class medical certification.
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
TABLE 6—FAA COST OF SPECIAL ISSUANCE REVIEW
FAA costs for special issuance review
Year
Low
Middle
High
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$11,931
12,639
13,347
14,055
14,763
15,470
16,178
16,886
17,594
18,302
$28,779
29,487
30,195
30,903
31,611
32,318
33,026
33,734
34,442
35,150
$56,851
57,559
58,267
58,974
59,682
60,390
61,098
61,806
62,513
63,221
Present Value at 7% ....................................................................................................................
Annualized at 7% .........................................................................................................................
Present Value at 3% ....................................................................................................................
Annualized at 3% .........................................................................................................................
103,418
14,724
127,476
14,944
221,751
31,572
271,193
31,792
418,915
59,644
510,650
59,864
(3) Cost of FAA Review of the National
Driver Register (NDR) Reports
Included within the medical
certificate application is the applicant’s
authorization for the FAA to receive
NDR data, which provides a report of
applicable motor vehicle actions within
the preceding three years. Intentional
failure to report required drug or alcohol
motor vehicle actions is grounds for
agent for each applicant that is flagged
through the NDR database. Using a
special agent hourly wage adjusted for
fringe benefits of $60.18, as shown in
Table 7 below, the FAA estimates that
each submission that requires further
investigation would cost $2,407. The
total costs to FAA associated with NDR
review are estimated in Table 8 using
the range of estimated submissions.
suspension of a pilot certificate. NDR
checks help to identify persons who
may have substance abuse or
dependence issues. Although the bulk
of the process is automated, the FAA
estimates there is roughly a 3% return
rate that requires additional review and
investigation. The FAA estimates that it
takes approximately 40 hours of
additional review time by a special
TABLE 7—SPECIAL AGENT WAGE WITH FRINGE BENEFITS
Special Agent ...............................................................................................
Federal Fringe Benefit Factor 1 2 3 ...............................................................
Yearly
Hourly
Fringe benefits
$91,877
........................
$44.17
........................
$16.01
36.25%
Total
$60.18
........................
1 https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2008/m08-13.pdf.
2 Percent
of position’s basic pay.
Worth, TX-OK locality plus fringe benefits, GS–12 Step 4. Retrieved from https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2021/DFW.pdf.
3 Dallas-Fort
TABLE 8—FAA COSTS FOR NDR REVIEW
FAA costs for NDR review
Year
khammond on DSKJM1Z7X2PROD with RULES
Low
Middle
High
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$68,172
72,216
76,260
80,304
84,348
88,392
92,436
96,481
100,525
104,569
$164,436
168,480
172,524
176,568
180,612
184,656
188,700
192,745
196,789
200,833
$324,828
328,872
332,916
336,960
341,004
345,048
349,092
353,136
357,180
361,224
Present Value at 7% ....................................................................................................................
Annualized at 7% .........................................................................................................................
Present Value at 3% ....................................................................................................................
Annualized at 3% .........................................................................................................................
590,895
84,130
728,356
85,386
1,267,013
180,394
1,549,507
181,650
2,393,537
340,786
2,917,681
342,041
Summary of Total Costs to FAA
The total costs to the FAA to
implement the requirement for
commercial balloon pilots to hold a
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Jkt 259001
second-class medical certificate is the
sum of the costs for FAA review and
processing of MedXPress applications,
review of special issuances, and review
PO 00000
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Fmt 4700
Sfmt 4700
of NDR information associated with
certain applications. The FAA estimates
the present value of total costs to the
Agency to be $0.9 million to $3.8
E:\FR\FM\22NOR1.SGM
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
million, with a mid-estimate of $2.0
million at a 7 percent discount rate and
$1.2 million to $4.6 million, with a midestimate of $2.5 million at a 3 percent
discount rate. The annualized value of
total cost to FAA is $0.1 million to $0.5
million with a mid-estimate of $0.3
million at a 7 percent discount rate and
$0.1 million to $0.5 million with a midestimate of $0.3 million at a 3 percent
discount rate.
The FAA acknowledges the difficulty
in estimating FAA burden and cost after
71231
the effective date of this rule given
uncertainties in the number of pilot
applicants and those pilots that would
either receive a second-class medical
certification or be granted a special
issuance certification.
TABLE 9—TOTAL COSTS TO FAA
Total cost to FAA
Year
Low
Middle
High
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$108,047
114,456
120,866
127,276
133,685
140,095
146,504
152,914
159,323
165,733
$260,617
267,027
273,436
279,846
286,256
292,665
299,075
305,484
311,894
318,303
$514,825
521,235
527,644
534,054
540,463
546,873
553,282
559,692
566,102
572,511
Present Value at 7% ....................................................................................................................
Annualized at 7% .........................................................................................................................
Present Value at 3% ....................................................................................................................
Annualized at 3% .........................................................................................................................
936,521
133,339
1,154,385
135,329
2,008,111
285,910
2,455,842
287,900
3,793,560
540,118
4,624,285
542,107
does not meet the part 67 standard, the
airman may still be issued a medical
certificate by authorization for special
issuance when the Federal Air Surgeon
determines the risk associated with the
medical condition(s) to be sufficiently
mitigated. Based on the rate of special
issuance for general aviation pilots, the
FAA assumes that 10% of the
commercial balloon pilot applicants
would require a special issuance. For
purposes of this analysis, the FAA
assumes that most applicants would
ultimately either receive a second-class
medical certificate or be granted a
special issuance and therefore does not
quantify costs associated with not
meeting the requirements.
However, the FAA expects some
applicants who would have otherwise
been able to operate as commercial
balloon pilots may not meet the
requirements of a second-class medical
certification nor the requirements for a
special issuance. Furthermore, the
Total Costs of the Rule
The total costs are shown in the table
below, which includes both costs to
industry and to the FAA. The total costs
over the ten years include the costs for
pilots to obtain their second-class
medical certificate, special issuances
and costs to the Agency for review of
applications, special issuances, and
NDR information. The FAA estimates
the present value of total costs over ten
years is $2.4 million to $16.3 million
with a mid-estimate of $6.9 million at a
7 percent discount rate and $2.9 million
to $19.9 million with a mid-estimate of
$8.4 million at a 3 percent discount rate.
The FAA estimates the annualized costs
over ten years is $0.3 million to $2.3
million with a mid-estimate of $1.0
million at a 7 percent discount rate and
$0.3 million to $2.3 million with a midestimate of $1.0 million at a 3 percent
discount rate.
As stated previously, in some cases,
where the airman’s medical condition
opportunity cost (including the time
and fees) of seeking a second-class
medical certification for some pilots
may outweigh their private gains from
operating commercially, resulting in
some pilots opting not to seek medical
certification. The FAA does not have
sufficient information to predict how
the supply of commercial balloon pilots
would change as a result of this rule.
While the FAA does not expect a
significant decrease in the availability of
balloon pilots, changes in supply of
balloon pilots could affect prices as
well. This analysis does not quantify
any potential changes in consumer and
producer surplus from changes in
supply. If the rule effectively screens
out certain individuals for disqualifying
medical conditions as intended, any
potential adverse effects on individual
applicants should be offset by the safety
gains to the public.
TABLE 10—TOTAL COSTS OF THE RULE
Total cost of the rule
Year
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Low
1
2
3
4
5
6
7
8
9
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
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Jkt 259001
PO 00000
Frm 00029
Fmt 4700
Sfmt 4700
Middle
$273,983
290,390
306,815
323,269
339,741
356,232
372,742
389,270
405,816
E:\FR\FM\22NOR1.SGM
22NOR1
$889,422
911,656
933,907
956,201
978,515
1,000,847
1,023,197
1,045,566
1,067,953
High
$2,208,457
2,236,654
2,264,867
2,293,150
2,321,451
2,349,770
2,378,108
2,406,464
2,434,839
71232
Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
TABLE 10—TOTAL COSTS OF THE RULE—Continued
Total cost of the rule
Year
Low
High
10 .................................................................................................................................................
422,381
1,090,359
2,463,232
Present Value at 7% ....................................................................................................................
Annualized at 7% .........................................................................................................................
Present Value at 3% ....................................................................................................................
Annualized at 3% .........................................................................................................................
2,380,511
338,931
2,934,807
344,049
6,864,816
977,395
8,396,497
984,326
16,294,834
2,320,018
19,865,182
2,328,805
Breakeven Analysis
B. Regulatory Flexibility Act
Given the uncertainties and
limitations in the available data, the
FAA conducted a breakeven analysis to
determine the number of averted
fatalities necessary to generate benefits
equal to costs. The FAA divided the
present value of total costs of the rule
by the present value of a statistical life
to estimate the number of fatalities
needed to break even with the costs of
the rule over a ten-year time horizon.
Using a value of statistical life of $11.6
million and the range of present value
of costs presented in Table 10 above, the
monetized benefits of this rule will
break even with costs if the new
medical certification requirement averts
between 0.4 to 2.8 fatalities under a 7
percent discount rate and between 0.3 to
2.3 fatalities under a 3 percent discount
rate.25
The Regulatory Flexibility Act (RFA)
of 1980, Public Law 96–354, 94 Stat.
1164 (5 U.S.C. 601–612), as amended by
the Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub.
L. 104–121, 110 Stat. 857, Mar. 29,
1996) and the Small Business Jobs Act
of 2010 (Pub. L. 111–240, 124 Stat. 2504
Sept. 27, 2010), requires Federal
agencies to consider the effects of the
regulatory action on small business and
other small entities and to minimize any
significant economic impact. The term
‘‘small entities’’ comprises small
businesses and not-for-profit
organizations that are independently
owned and operated and are not
dominant in their fields, and
governmental jurisdictions with
populations of less than 50,000.
The FAA published an Initial
Regulatory Flexibility Analysis (IRFA)
in the proposed rule to aid the public in
commenting on the potential impacts to
small entities. The FAA considered the
public comments in developing the final
rule and this Final Regulatory
Flexibility Analysis (FRFA). A FRFA
must contain the following:
(1) A statement of the need for, and
objectives of, the rule;
(2) A statement of the significant
issues raised by the public comments in
response to the IRFA, a statement of the
assessment of the agency of such issues,
and a statement of any changes made in
the proposed rule as a result of such
comments;
(3) The response of the agency to any
comments filed by the Chief Counsel for
Advocacy of the Small Business
Administration (SBA) in response to the
proposed rule, and a detailed statement
of any change made to the proposed rule
in the final rule as a result of the
comments;
(4) A description of and an estimate
of the number of small entities to which
the rule will apply or an explanation of
why no such estimate is available;
(5) A description of the projected
reporting, recordkeeping, and other
compliance requirements of the rule,
including an estimate of the classes of
Regulatory Alternatives
khammond on DSKJM1Z7X2PROD with RULES
Middle
As discussed in the NPRM, the FAA
considered one alternative to the
proposed rule: Letter of Authorization
(LOA) and Drug and Alcohol Testing.
With this alternative, the FAA would
have instituted both a medical
certificate requirement as well as a
requirement for obtaining an LOA from
the FAA and mandatory drug and
alcohol testing. This alternative would
have expanded the definition of an
operator under § 91.147 to include
balloons, which would have required
the commercial balloon operators to
obtain an LOA from the FAA in
accordance with § 91.147 prior to
conducting air tour operations, and
implement a drug and alcohol testing
program in accordance with 14 CFR part
120. However, as discussed elsewhere
in this final rule, this alternative goes
beyond the statutory mandate.
Therefore, the FAA did not adopt this
alternative.
25 Departmental Guidance on Valuation of a
Statistical Life in Economic Analysis https://
www.transportation.gov/office-policy/
transportation-policy/revised-departmentalguidance-on-valuation-of-a-statistical-life-ineconomic-analysis.
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Sfmt 4700
small entities which will be subject to
the requirement and the type of
professional skills necessary for
preparation of the report or record; and
(6) A description of the steps the
agency has taken to minimize the
significant economic impact on small
entities consistent with the stated
objectives of applicable statutes,
including a statement of the factual,
policy, and legal reasons for selecting
the alternative adopted in the final rule
and why each of the other significant
alternatives to the rule considered by
the agency which affect the impact on
small entities was rejected.
Statement of the Need for and
Objectives of the Rule
This rulemaking addresses the need
for additional oversight of airmen
conducting balloon operations for
compensation or hire by implementing
the statutory mandate under the
Commercial Balloon Pilot Safety Act of
2018 and NTSB Safety Recommendation
A–17–034 to extend second-class
medical certification requirements to
operators of balloons.
The objective of the rule is to enhance
safety for passengers of commercial
balloon operations by requiring pilots to
obtain and hold second-class medical
certificates, in compliance with Section
318, to prevent potential accidents in
commercial balloon operations.
Significant Issues Raised in Public
Comments
The FAA received 192 comments
during the public comment period. One
significant issue commenters raised was
the concern that the proposed rule
would impose significant burdens on
balloon pilots and could put some of
them out of business, causing the
supply of balloon pilots to shrink. The
FAA assessed this concern and does not
believe that the costs of the rule would
cause such an undue burden. The cost
estimate per pilot to obtain a secondclass medical certificate is between $160
and $685 annually, depending on
whether a special issuance would be
necessary, which is the equivalent of
0.06% to 0.37% of average annual
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
revenues for small entities. The FAA
considers this expense to be nonsignificant to cause such a decline in the
number of balloon pilots. A more
detailed analysis may be found under
the Description and an Estimated
Number of Small Entities Impacted
section.
In addition, several commenters noted
that larger balloon operations require
their pilots to carry second-class
medical certificates as part of insurance
requirements. These balloon pilots do
not have to incur additional costs as a
result of the final rule. The FAA
estimates about 8.8% of balloon pilots
fall into this category. However, the vast
majority of balloon pilots are not
currently required to hold second-class
medical certificates either by the FAA or
insurance carriers. There was no change
made to the final rule as a result of
public comments.
Response to SBA Comments
The FAA received no comments from
the Chief Counsel for Advocacy of the
Small Business Administration.
khammond on DSKJM1Z7X2PROD with RULES
Description and an Estimated Number
of Small Entities Impacted
The final rule affects commercial
balloon pilots and establishments
involved in commercial balloon
operations. The FAA does not maintain
a database of commercial balloon
operators actively operating in the
United States. Using commercial
sources, the FAA estimates that number
to be about 356 26 companies.
Approximately 4,870 commercial pilots
hold balloon ratings, and approximately
4,940 balloons are registered with the
FAA. The commercial balloon industry
estimates that 100,000 to 250,000
passenger rides are conducted annually,
as well as aerial advertising and other
commercial activities.
FAA used the definition of small
entities in the RFA for this analysis. The
RFA defines small entities as small
businesses, small governmental
jurisdictions, or small organizations. In
5 U.S.C. § 601(3), the RFA defines
‘‘small business’’ to have the same
meaning as ‘‘small business concern’’
under section 3 of the Small Business
Act. The Small Business Act authorizes
the Small Business Administration
(SBA) to define ‘‘small business’’ by
issuing regulations. SBA (2019) has
established size standards for various
types of economic activities, or
industries, under the North American
Industry Classification System
26 https://www.blastvalve.com/Balloon_Rides/
USA/index.shtml.
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16:01 Nov 21, 2022
Jkt 259001
(NAICS).27 These size standards
generally define small businesses based
on the number of employees or annual
receipts. Note that the SBA definition of
a small business applies to the parent
company and all affiliates as a single
entity.
To identify small entities, the FAA
first identified the primary NAICS of the
airline or parent company, and then
used data from different sources (e.g.,
company annual reports, Bureau of
Transportation Statistics) to determine
whether the parent company meets the
applicable size standard. Businesses
affected by this rule are classified using
the 2017 North American Industry
Classification System 28 under NAICS
code 487990 ‘‘Scenic and Sightseeing
Transportation, Other.’’ This industry
comprises establishments primarily
engaged in providing scenic and
sightseeing transportation (except on
land and water). The U.S. Small
Business Administration (SBA) defines
entities in this industry as ‘‘small’’ using
an average annual revenue threshold of
$8 million.29 With limited information
and data on sales revenues for each of
the affected commercial balloon
operators, the FAA has uncertainty as to
how many entities would meet the
SBA’s small-entity criteria.30
Furthermore, the FAA has uncertainty
as to how the burden associated with
the final rule would be distributed
across commercial balloon companies
versus individual balloon pilots
employed by an operator. The FAA
requested comment and data on the
average annual sales revenues for the
affected small businesses and to what
extent the costs of obtaining a secondclass medical certification would be
considered an ‘‘out-of-pocket’’ cost
incurred by commercial balloon pilots
rather than a cost to the commercial
balloon operator. The only information
received was that the ballooning
insurance providers have required
commercial pilots flying balloons larger
than 120,000 cubic feet to hold a
second-class medical certificate. Data
27 Small Business Administration (SBA). 2019.
Table of Size Standards. Effective August 12, 2019.
https://www.sba.gov/document/support--table-sizestandards.
28 https://www.census.gov/naics/?input=487990
&year=2017&details=487990.
29 https://www.sba.gov/sites/default/files/201908/SBA%20Table%20of%20Size%20Standards_
Effective%20Aug%2019%2C%202019_Rev.pdf.
30 Rainbow Ryders is one of the larger commercial
balloon companies and are under the Small
Business Administration small-entity criteria.
Therefore, the FAA estimates that all of the
Commercial balloon companies are a small entity.
It’s Been a Year of Growth for Rainbow Ryders,
https://www.abqjournal.com/1095655/its-been-agrowth-year-for-rainbow-ryders.html, September 9,
2019.
PO 00000
Frm 00031
Fmt 4700
Sfmt 4700
71233
indicated 427 balloon pilots have
second-class medical certificates, and
the FAA has made this adjustment to
recompute the costs of this final rule. As
previously described, the FAA estimates
the cost per pilot to obtain a secondclass medical certificate would be
between $160 and $685 annually,
depending on whether a special
issuance would be necessary.
For purposes of this final regulatory
flexibility analysis, the FAA assumes
that the private sector costs of this rule
(i.e., the cost to obtain a second-class
medical certification or special
issuance) fall entirely on commercial
balloon operators. In the absence of data
on annual receipts specific to the
commercial balloon industry, the FAA
relies on the most recent data available
on average revenues for all businesses,
including commercial balloon operators,
classified under NAICS 487990 ‘‘Scenic
and Sightseeing Transportation, Other’’
from the 2017 Census Bureau’s Statistics
of U.S. Businesses (SUSB) 31 to inform
the analysis. Note that the total number
of firms identified for this industry is
less than the FAA estimated number of
commercial balloon operators. In this
analysis, the FAA uses the SUSB data to
estimate the proportion of balloon
companies for each size category by
annual receipts.
The table below summarizes the total
number of firms, employment, and
estimated annual receipts by annual
receipt category for the entire industry
classified under NAICS 487990 ‘‘Scenic
and Sightseeing Transportation, Other’’
for the year 2017. Note that blanks in
the table below reflect data that the
Census Bureau withheld to avoid
disclosing data for individual
companies but are included in the
higher-level totals. After adjusting the
2017 dollar values to constant 2021
dollars using the GDP deflator,32 the
FAA estimates that approximately 93
percent of companies (or about 331
balloon operators extrapolating from
this percentage) may be considered
small entities under the SBA definition.
To compare the compliance costs of
the rule to the average revenues of small
entities, for each receipt size category
the FAA multiplies the proportion of
total employment by the annualized
private sector costs of the rule and
divides by the estimated annual receipts
31 Available at https://www.census.gov/data/
tables/2017/econ/subs/2017-annual.html, retrieved
on August 15, 2021.
32 Available at: https://www.whitehouse.gov/omb/
historical-tables/.
E:\FR\FM\22NOR1.SGM
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
in 2021 dollars.33 Assuming that costs
are proportional to employment size,
which may be reasonable given that
costs are driven by the number of pilots
requiring a second-class medical
certification, the FAA estimates that the
other information or data that would be
relevant for estimating the effects of the
rule on small entities but did not receive
any during the comment period.
costs of the final rule constitutes 0.06%
to 0.37% of average annual revenues for
small entities. Given the currency and
level of aggregation of the data available,
the FAA requested comment on
accuracy of these estimates and any
TABLE 11—NUMBER OF FIRMS, ESTABLISHMENTS, EMPLOYMENT, AND ESTIMATED RECEIPTS BY ENTERPRISE RECEIPT
SIZES FOR THE UNITED STATES, NAICS 487990: 2017
[Census statistics of U.S. businesses]
Enterprise receipt size a
Number of
firms b
Percentage
of firms
Employment
Percentage
of total
employment
Estimated
receipts
($1,000)
Cost for all
firms in size
category
($1,000)
Cost as a
percentage of
receipts
<$100,000 .....................................................
$100,000–499,999 ........................................
$500,000–999,999 ........................................
$1,000,000–2,499,999 ..................................
$2,500,000–4,999,999 ..................................
$5,000,000–7,499,999 ..................................
$7,500,000–9,999,999 ..................................
$10,000,000–14,999,999 ..............................
$20,000,000–24,999,999 ..............................
$25,000,000–29,999,999 ..............................
$30,000,000–34,999,999 ..............................
$35,000,000–39,999,999 ..............................
$50,000,000–74,999,999 ..............................
$100,000,000+ ..............................................
53
119
47
43
18
6
5
4
........................
3
........................
........................
........................
4
17
39
15
14
6
2
2
1.3
........................
1.0
........................
........................
........................
1
48
192
237
365
323
106
213
196
........................
93
........................
........................
........................
1,044
1
5
7
10
9
3
6
5
........................
3
........................
........................
........................
29
2,255
29,644
32,765
63,134
65,788
29,465
41,585
50,270
........................
19,490
........................
........................
........................
251,871
9
37
45
70
62
20
41
38
........................
18
........................
........................
........................
200
0.37
0.11
0.13
0.10
0.09
0.06
0.09
0.07
........................
0.08
........................
........................
........................
0.07
Total .......................................................
309
100
3,611
100
762,426
691
0.08
a Using
the Gross Domestic Product (GDP) deflator, the FAA finds that $7.49 million in 2017 dollars would be approximately $ 8.16 million in 2021 dollars. Therefore, the FAA assumes firms with receipts of less than $7.49 million in 2017 dollars would be considered small.
b The FAA notes that the number of firms in NAICS 487990 is lower than FAA’s estimate of the number of balloon operators. For purposes of this analysis, the
SUSB data is used to estimate the percentage of small entities and the distribution of costs relative to revenues.
khammond on DSKJM1Z7X2PROD with RULES
Description of the Recordkeeping and
Other Compliance Requirements
The FAA requires that airmen hold a
valid second-class medical certificate
when exercising the privileges of a
commercial pilot certificate in a balloon
for compensation or hire. A medical
certificate is not required for
commercial pilots conducting flight
training in a balloon. As determined by
a physical examination and review of
medical history, airmen must meet the
applicable medical standards of part 67
in order to receive an unrestricted
medical certificate. In cases where the
airman’s medical condition does not
meet the part 67 standard, the airman
may still be issued a medical certificate
by authorization for special issuance or
SODA when the Federal Air Surgeon
had determined that the risk associated
with the medical condition(s) is
sufficiently mitigated.
A person obtains a medical certificate
by completing an online application
(FAA form 8500–8, Application for
Medical Certificate) using the FAA’s
medical certificate application tool,
MedXPress,34 and undergoing a
physical examination with an FAAdesignated AME. An AME may defer an
applicant to the FAA for further review
33 For this calculation, the FAA uses the midestimate of $691,486 for the total private sector
costs annualized at a 7 percent discount rate.
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(which may include further examination
and testing by a specialist physician)
when there is information indicating the
existence or potential of an adverse
medical finding that may warrant
further FAA medical evaluation and
oversight. Second-class medical
certificates held for any operations
requiring a commercial pilot certificate
(including the second-class medical
certificates that is required for balloon
operations under this final rule) expire
at the end of the last day of the 12th
month after the month of the date of
examination shown on the medical
certificate.
Alternatives Considered To Minimize
Any Significant Economic Impact on
Small Entities
The FAA has not identified any
significant alternative that would
minimize any significant economic
impact on small entities which do not
conflict with the statutory mandate.
During the comment period, the FAA
solicited comment on potential
alternative approaches that could
minimize the burden on small entities
while still accomplishing the objectives
of the proposal and did not receive any
suggestions.
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 final rule and
determined that it will not create
unnecessary obstacles to the foreign
commerce of the United States.
The FAA has assessed the potential
effect of this rule and determined that
it ensures the safety of the American
public and does not exclude imports
that meet this objective. As a result, the
34 https://medxpress.faa.gov/.
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
FAA does not consider this rule as
creating an unnecessary obstacle to
foreign commerce.
D. Unfunded Mandates Assessment
The Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1531–1538) governs
the issuance of Federal regulations that
require unfunded mandates. An
unfunded mandate is a regulation that
requires a State, local, or tribal
government or the private sector to
incur direct costs without the Federal
government having first provided the
funds to pay those costs. The FAA
determined that the final rule will not
result in the expenditure of
$165,000,000 or more by State, local, or
tribal governments, in the aggregate, or
the private sector, in any one year.
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.
According to the 1995 amendments to
the Paperwork Reduction Act (5 CFR
71235
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
Office of Management and Budget
(OMB) control number.
This final rule contains the following
amendments to the existing information
collection requirements previously
approved under OMB Control No. 2120–
0034. In the analysis below, the FAA
describes the incremental changes in the
number of respondents, annual burden,
and monetized costs of the existing
information collection requirement
previously approved under OMB
Control No. 2120–0034. As required by
the Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)), the FAA has
submitted the information collection
requirements to OMB for its review.
commercial pilot certificate in a balloon
for compensation or hire. To obtain a
medical certificate, an airman has to
complete an online application (FAA
form 8500–8, Application for Medical
Certificate) using the FAA’s medical
certificate application tool, MedXPress
and undergo a physical examination
with an FAA-designated Aviation
Medical Examiner (AME).
In Table 12 below, the FAA shows the
incremental burden of this rule to the
approved information collection under
OMB Control No. 2120–0034.
Additional details on assumptions and
calculations used in this section are
presented elsewhere in the Regulatory
Evaluation section of this document.
Requirements To Hold a Second-Class
Medical Certificate
The mid estimate of the number of
applicants in the first year is 2,277.
Estimates of the Hour Burden of the
Collection of Information
The final rule requires airmen to hold
a valid second-class medical certificate
when exercising the privileges of a
TABLE 12—BURDEN HOURS ASSOCIATED WITH MEDXPRESS FORM 8500–8
Form No.
Number of
applicants
Hours per
applicant
Total hours
8500–8
2,277
1.5
3,416
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Estimate of the Total Annual Cost
Burden to Respondents or Record
Keepers Resulting From the Collection
of Information
Once the information on FAA Form
8500–8 is collected, respondents must
receive a medical examination in order
to be certificated to exercise commercial
balloon pilot privileges. The average fee
for a basic medical examination is
estimated at $150. The total cost for
medical exams in the first year is as
follows:
$150 × 2,277 submissions of Form
8500–8 = $ 341,550
Estimates of Annualized Costs to the
Federal Government
The estimated annualized cost to the
Federal Government to implement the
final rule is between $133,339 and
$540,118, with a mid-estimate of
$285,910 at a 7 percent discount rate.
The FAA would incur costs associated
with reviewing and processing
applications submitted through
MedXPress. It costs about $30 per
medical certification review using the
primary estimate for the number of
applications in the first year, the FAA
estimates a total cost of $67,399 (=
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16:01 Nov 21, 2022
Jkt 259001
$29.60 per application × 2,277) in the
first year.
Currently, a MedXPress application
that requires a special issuance medical
certificate is deferred to the AMCD of
Oklahoma City for further
consideration. The FAA assumes that 10
percent of the applicants do not initially
qualify for second-class medical
certification and, therefore, would
require special issuance. The average
cost to FAA for each medical certificate
special issuance review is
approximately $126.
The total annualized costs for the
FAA to review, including NDR and
process MedXPress applications from
commercial balloon applicants and
costs for the FAA to conduct Special
Issuance Review for commercial balloon
applicants is between $98,855 and
$400,430, with a mid-estimate of
$211,967 at a 7 percent discount rate
over ten years.
F. International Compatibility
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
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Frm 00033
Fmt 4700
Sfmt 4700
Recommended Practices to the
maximum extent practicable. The FAA
has reviewed the corresponding ICAO
Standards and Recommended Practices
and has determined that this rule will
require a minor modification to the
existing differences filed in regard to
medical certification for commercial
balloon pilots. Currently, the U.S. has
filed a difference stating that balloon
pilots are not required to hold a medical
certificate but are prohibited from
operating during periods of medical
deficiency. This statement will be
updated to reflect the medical certificate
requirement described in this rule.
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 5–6.6f for regulations and
involves no extraordinary
circumstances.
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71236
Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
VI. Executive Order Determination
VIII. Additional Information
A. Executive Order 13132, Federalism
The FAA has analyzed this final rule
under the principles and criteria of
Executive Order 13132, Federalism. The
agency has determined that this action
does 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.
A. Electronic Access and Filing
B. Executive Order 13211, Regulations
That Significantly Affect Energy Supply,
Distribution, or Use
The FAA analyzed this final rule
under Executive Order 13211, Actions
Concerning Regulations that
Significantly Affect Energy Supply,
Distribution, or Use. The FAA has
determined that this final rule is not a
‘‘significant energy action’’ under the
executive order and it will not be likely
to have a significant adverse effect on
the supply, distribution, or use of
energy.
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C. Executive Order 13609, International
Cooperation
Executive Order 13609, Promoting
International Regulatory Cooperation,
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 reduces differences between
U.S. aviation standards and those of
other civil aviation authorities by
bringing U.S. regulatory requirements
partially into compliance with
International Civil Aviation
Organization (ICAO) standards for
medical certification.35
VII. Privacy
The information collected from FAA
Form 8500–8 becomes part of the
Privacy Act System of Records DOT/
FAA 847, ‘‘Aviation Records on
Individuals,’’ [DOT/FAA 847] and is
provided the protection outlined in the
description of the system as published
in the Federal Register.
35 The 12th edition of the Annex 1 to the
Convention on International Civil Aviation,
Personnel Licensing, (July 2018), specifies that a
person exercising the privileges of a Free Balloon
Pilot License must hold a Class 2 medical. See
2.10.1.5.
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16:01 Nov 21, 2022
Jkt 259001
A copy of the NPRM, all comments
received, this final rule, and all
background material may be viewed
online at https://www.regulations.gov
using the docket number listed above.
Electronic retrieval help and guidelines
are available on the website. It is
available 24 hours each day, 365 days
each year. An electronic copy of this
document may also be downloaded
from the Office of the Federal Register’s
website at https://
www.federalregister.gov and the
Government Publishing Office’s website
at https://www.govinfo.gov. A copy may
also be found on the FAA’s Regulations
and Policies website at https://
www.faa.gov/regulations_policies.
Copies may also be obtained by
sending a request to the Federal
Aviation Administration, Office of
Rulemaking, ARM–1, 800 Independence
Avenue SW, Washington, DC 20591, or
by calling (202) 267–9677. Commenters
must identify the docket or amendment
number of this rulemaking.
All documents the FAA considered in
developing this final rule, including
economic analyses and technical
reports, may be accessed in the
electronic docket for this rulemaking.
B. Small Business Regulatory
Enforcement Fairness Act
The Small Business Regulatory
Enforcement Fairness Act (SBREFA) of
1996 requires the 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 https://
www.faa.gov/regulations_policies/
rulemaking/sbre_act/.
List of Subjects
14 CFR Part 61
Aircraft, Airmen, Alcohol abuse,
Aviation safety, Drug abuse, Flight
instruction, Medical certification,
Recreation and recreation areas,
Reporting and recordkeeping
requirements, Security measures,
Teachers.
14 CFR Part 68
Aircraft, Airmen, Health, Reporting
and Recordkeeping requirements.
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Frm 00034
Fmt 4700
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The Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends chapter I of title 14, Code of
Federal Regulations as follows:
PART 61—CERTIFICATION: PILOTS,
FLIGHT INSTRUCTORS, AND GROUND
INSTRUCTORS
1. The authority citation for part 61 is
revised to read as follows:
■
Authority: 49 U.S.C. 106(f), 106(g), 40113,
44701–44703, 44707, 44709–44711, 44729,
44903, 45102–45103, 45301–45302.
2. Amend § 61.3 by revising
paragraphs (c)(2)(xiii) and (c)(2)(xiv),
and adding paragraph (c)(2)(xv) to read
as follows:
■
§ 61.3 Requirement for certificates,
ratings, and authorizations.
*
*
*
*
*
(c) * * *
(2) * * *
(xiii) Is exercising the privileges of a
student, recreational or private pilot
certificate for operations conducted
under the conditions and limitations set
forth in § 61.113(i) and holds a U.S.
driver’s license;
(xiv) Is exercising the privileges of a
flight instructor certificate and acting as
pilot in command or a required
flightcrew member for operations
conducted under the conditions and
limitations set forth in § 61.113(i) and
holds a U.S. driver’s license; or
(xv) Is exercising the privileges of a
student pilot certificate or higher while
acting as pilot in command on a special
medical flight test authorized under part
67 of this chapter.
*
*
*
*
*
■ 3. Effective May 22, 2023, amend
§ 61.3 by revising paragraph (c)(2)(vi) to
read as follows:
§ 61.3 Requirement for certificates,
ratings, and authorizations.
*
*
*
*
*
(c) * * *
(2) * * *
(vi) Is holding a pilot certificate with
a balloon class rating and that person—
(A) Is exercising the privileges of a
private pilot certificate in a balloon; or
(B) Is providing flight training in a
balloon in accordance with
§ 61.133(a)(2)(ii);
*
*
*
*
*
■ 4. Amend § 61.23 by:
■ a. Revising paragraphs (b)(8) and
(b)(9)(ii);
■ b. Adding paragraph (b)(10); and
■ c. Revising paragraphs (c)(3)(i)(C),
(c)(3)(i)(D), and (c)(3)(i)(E).
The revisions and additions read as
follows:
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
§ 61.23 Medical certificates: Requirement
and duration.
*
*
*
*
*
(b) * * *
(8) When taking a practical test or a
proficiency check for a certificate,
rating, authorization or operating
privilege conducted in a glider, balloon,
flight simulator, or flight training
device;
(9) * * *
(ii) The flight conducted is a domestic
flight operation within U.S. airspace; or
(10) When exercising the privileges of
a student pilot certificate or higher
while acting as pilot in command on a
special medical flight test authorized
under part 67 of this chapter.
(c) * * *
(3) * * *
(i) * * *
(C) Complete the medical education
course set forth in § 68.3 of this chapter
during the 24 calendar months before
acting as pilot in command or serving as
a required flightcrew member in an
operation conducted under § 61.113(i)
and retain a certification of course
completion in accordance with
§ 68.3(b)(1) of this chapter;
(D) Receive a comprehensive medical
examination from a State-licensed
physician during the 48 months before
And on the date of examination for your most recent
medical certificate you
were
If you hold
acting as pilot in command or serving as
a required flightcrew member of an
operation conducted under § 61.113(i)
and that medical examination is
conducted in accordance with the
requirements in part 68 of this chapter;
and
(E) If the individual has been
diagnosed with any medical condition
that may impact the ability of the
individual to fly, be under the care and
treatment of a State-licensed physician
when acting as pilot in command or
serving as a required flightcrew member
of an operation conducted under
§ 61.113(i).
*
*
*
*
*
■ 5. Effective May 22, 2023, amend
§ 61.23 by:
■ a. Revising paragraphs (a)(2)(i) and
(a)(2)(ii);
■ b. Adding paragraph (a)(2)(iii);
■ c. Revising paragraph (b)(3);
■ d. Redesignating paragraphs (b)(4)
through (b)(10) as paragraphs (b)(6)
through (b)(12); and
■ e. Adding new paragraphs (b)(4) and
(b)(5);
■ f. Revising paragraphs (d)(1)(iii) and
(d)(2)(i).
The revisions and additions read as
follows:
§ 61.23 Medical certificates: Requirement
and duration.
(a) * * *
(2) * * *
(i) Second-in-command privileges of
an airline transport pilot certificate in
part 121 of this chapter (other than
operations specified in paragraph
(a)(1)(ii) of this section);
(ii) Privileges of a commercial pilot
certificate in an aircraft other than a
balloon or glider; or
(iii) Except as provided in paragraph
(b)(5) of this section, privileges of a
commercial pilot certificate with a
balloon class rating for compensation or
hire; or
(b) * * *
(3) When exercising the privileges of
a pilot certificate with a glider category
rating in a glider;
(4) When exercising the privileges of
a private pilot certificate with a balloon
class rating in a balloon;
(5) When exercising the privileges of
a commercial pilot certificate with a
balloon class rating in a balloon if the
person is providing flight training in
accordance with § 61.133(a)(2)(ii);
*
*
*
*
*
(d) * * *
Then your medical certificate expires, for
that operation, at the end of the last day
of the
And you are conducting an operation requiring
(1) * * *
(iii) Any age ........................
*
*
a commercial pilot certificate (other than a commercial
pilot certificate with a balloon rating when conducting
flight training), a flight engineer certificate, or an air
traffic control tower operator certificate.
*
*
12th month after the month of the date of
examination shown on the medical
certificate.
*
*
*
(2) * * *
(i) Any age .........................
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*
*
*
6. Amend § 61.113 by revising the
introductory text of paragraph (i) to read
as follows:
■
§ 61.113 Private pilot privileges and
limitations: Pilot in command.
*
*
*
VerDate Sep<11>2014
*
*
16:01 Nov 21, 2022
an airline transport pilot certificate for second-in-command privileges (other than the operations specified
in paragraph (d)(1) of this section), a commercial
pilot certificate (other than a commercial pilot certificate with a balloon rating when conducting flight
training), a flight engineer certificate, or an air traffic
control tower operator certificate.
Jkt 259001
*
*
(i) A private pilot may act as pilot in
command or serve as a required
flightcrew member of an aircraft without
holding a medical certificate issued
under part 67 of this chapter provided
the pilot holds a valid U.S. driver’s
license, meets the requirements of
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Frm 00035
Fmt 4700
12th month after the month of the date of
examination shown on the medical
certificate.
Sfmt 4700
*
*
§ 61.23(c)(3), and complies with this
section and all of the following
conditions and limitations:
*
*
*
*
*
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Rules and Regulations
PART 68—REQUIREMENTS FOR
OPERATING CERTAIN SMALL
AIRCRAFT WITHOUT A MEDICAL
CERTIFICATE
DEPARTMENT OF TRANSPORTATION
7. The authority citation for part 68
continues to read as follows:
[Docket No. FAA–2022–1209; Airspace
Docket No. 22–AWA–5]
Federal Aviation Administration
14 CFR Part 71
■
Authority: 49 U.S.C. 106(f), 44701–44703.
8. Amend § 68.3 by revising the
introductory text of paragraph (a) and
the introductory text of paragraph (b) to
read as follows:
■
§ 68.3 Medical education course
requirements.
(a) The medical education course
required to act as pilot in command or
serve as a required flightcrew member
in an operation under § 61.113(i) of this
chapter must—
*
*
*
*
*
(b) Upon successful completion of the
medical education course, the following
items must be electronically provided to
the individual seeking to act as pilot in
command or serve as a required
flightcrew member under the conditions
and limitations of § 61.113(i) of this
chapter and transmitted to the FAA—
*
*
*
*
*
9. Amend § 68.9 by revising the
introductory text of paragraph (a) to
read as follows:
■
§ 68.9
Special Issuance process.
(a) General. An individual who has
met the qualifications to operate an
aircraft under § 61.113(i) of this chapter
and is seeking to act as a pilot in
command or serve as a required
flightcrew member under that section
must have completed the process for
obtaining an Authorization for Special
Issuance of a Medical Certificate for
each of the following:
*
*
*
*
*
Issued in Washington, DC, under authority
provided by 49 U.S.C. 106(f), 44701, 44702,
and 44703 on or about November 16, 2022.
Billy Nolen,
Acting Administrator.
[FR Doc. 2022–25288 Filed 11–21–22; 8:45 am]
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BILLING CODE 4910–13–P
RIN 2120–AA66
Amendment of Class C Airspace;
Evansville, IN
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This action amends the
Evansville Regional Airport, IN, Class C
airspace description to update the
airport reference point (ARP) geographic
coordinates for the Evansville Regional
Airport and the Skylane Airport to
match the FAA’s National Airspace
System Resource (NASR) database
information. Additionally, this action
makes technical amendments to the
airspace description header information
by changing the title of the airspace area
and adding the Pocket City, IN (PXV),
VHF Omnidirectional Range and
Tactical Air Navigation (VORTAC)
navigational aid. Finally this action
amends the airspace description by
correcting the Airport/Facility Directory
reference. This action does not change
the boundaries, altitudes, or operating
requirements of the Class C airspace
area.
SUMMARY:
Effective date 0901 UTC,
February 23, 2023. The Director of the
Federal Register approves this
incorporation by reference action under
1 CFR part 51, subject to the annual
revision of FAA Order 7400.11 and
publication of conforming amendments.
ADDRESSES: FAA Order 7400.11G,
Airspace Designations and Reporting
Points, and subsequent amendments can
be viewed online at www.faa.gov/air_
traffic/publications/. For further
information, you can contact the Rules
and Regulations Group, Federal
Aviation Administration, 800
Independence Avenue SW, Washington,
DC 20591; telephone: (202) 267–8783.
FOR FURTHER INFORMATION CONTACT:
Colby Abbott, Rules and Regulations
Group, Office of Policy, Federal
Aviation Administration, 800
Independence Avenue SW, Washington,
DC 20591; telephone: (202) 267–8783.
SUPPLEMENTARY INFORMATION:
DATES:
Authority for This Rulemaking
The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the United States Code.
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16:01 Nov 21, 2022
Jkt 259001
PO 00000
Frm 00036
Fmt 4700
Sfmt 4700
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 I, Section 40103. Under that
section, the FAA is charged with
prescribing regulations to assign the use
of the airspace necessary to ensure the
safety of aircraft and the efficient use of
airspace. This regulation is within the
scope of that authority as it updates the
listed airports ARP geographic
coordinates information, amends the
airspace description header information
by changing the airspace title and
adding the Pocket City VORTAC.
Finally, this action corrects the airspace
description by updating the Airport/
Facility Directory reference.
History
Class C airspace areas are designed to
improve air safety by reducing the risk
of midair collisions in high volume
airport terminal areas and to enhance
the management of air traffic operations
in that area. During a recent inquiry
regarding the Evansville Regional
Airport, IN, Class C airspace description
and the surface area cutout for the
Skylane Airport, the FAA identified that
the Evansville Regional Airport and
Skylane Airport ARP geographic
coordinates were incorrect. This action
updates the ARP geographic coordinates
for both airports listed in the airspace
description to coincide with the FAA’s
NASR database information. After
reviewing the existing airspace
description, this action also makes
technical amendments to the airspace
description header information by
changing the title of the Class C airspace
area to reflect city and state instead of
the airport name the airspace is
designated around and by adding the
Pocket City, IN (PXV), VORTAC since it
is used to define the surface area cutout
for the Skylane Airport. Further, a
technical amendment to the airspace
description corrects the Airport/Facility
Directory reference. There are no
changes to the boundaries, altitudes, or
air traffic control services resulting from
this action.
Class C airspace areas are published
in paragraph 4000 of FAA Order
7400.11G, dated August 19, 2022, and
effective September 15, 2022, which is
incorporated by reference in 14 CFR
71.1. The Class C airspace listed in this
document will be published
subsequently in FAA Order JO 7400.11.
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]]>Agencies
[Federal Register Volume 87, Number 224 (Tuesday, November 22, 2022)]
[Rules and Regulations]
[Pages 71218-71238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25288]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 61 and 68
[Docket No. FAA-2021-1040; Amdt. Nos. 61-152 and 68-2]
RIN 2120-AL51
Medical Certification Standards for Commercial Balloon Operations
AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The FAA is amending its regulations to require airmen hold a
valid second-class medical certificate when exercising the privileges
of a commercial pilot certificate in a balloon for compensation or hire
except when conducting flight training in a balloon. In addition, the
FAA makes miscellaneous amendments related to medical certification
requirements for special medical flight tests and a minor change to the
BasicMed regulations.
DATES: This rule is effective December 22, 2022, except for the
amendments to Sec. Sec. 61.3(c)(2)(vi), 61.23(a)(2)(i),
61.23(a)(2)(ii), 61.23(a)(2)(iii), 61.23(b)(3), 61.23(b)(4),
61.23(b)(5), 61.23(d)(1)(iii), and 61.23(d)(2)(i)), which are effective
May 22, 2023.
ADDRESSES: For information on where to obtain copies of rulemaking
documents and other information related to this final rule, see ``How
to Obtain Additional Information'' in the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT: Bradley Zeigler, Training &
Certification Group, Federal Aviation Administration, 800 Independence
Avenue SW, Washington, DC 20591; telephone (202) 267-9601; email
[email protected].
SUPPLEMENTARY INFORMATION:
List of Abbreviations and Acronyms Frequently Used in This Document
AMCD Aerospace Medical Certification Division
ADHD Attention Deficit Hyperactivity Disorder
AME Aviation Medical Examiner
ASI Aviation Safety Inspector
ATP Airline Transport Pilot
BFA Balloon Federation of America
IRFA Initial Regulatory Flexibility Analysis
LOA Letter of Authorization
NAS National Airspace System
NDR National Driver Register
NPRM Notice of proposed rulemaking
NTSB National Transportation Safety Board
PDPS Problem Driver Pointer System
PIC Pilot in Command
SIC Second in Command
SODA Statement of Demonstrated Ability
Table of Contents
I. Executive Summary
A. Purpose of the Regulatory Action
B. Changes Made in This Final Rule
C. Summary of the Costs and Benefits
II. Authority for This Rulemaking
III. Background
A. Need for Regulation
B. National Transportation Safety Board (NTSB) Recommendations
C. Summary of the NPRM
D. General Overview of Comments
IV. Discussion of Comments and the Final Rule
A. Application of Medical Certificate Requirement to Only
Operations Based on Size of Envelope or Passenger Capacity
B. Application of Rule to Commercial Balloon Operations Without
Passengers
C. Drug and Alcohol Testing
D. Miscellaneous Issues
E. Comments Regarding Miscellaneous Amendments
V. Regulatory Notices and Analyses
A. Summary of the Regulatory Impact Analysis
B. Regulatory Flexibility Act
C. International Trade Impact Assessment
D. Unfunded Mandates Assessment
E. Paperwork Reduction Act
F. International Compatibility
G. Environmental Analysis
VI. Executive Order Determination
A. Executive Order 13132, Federalism
B. Executive Order 13211, Regulations That Significantly Affect
Energy Supply, Distribution, or Use
C. Executive Order 13609, International Cooperation
VII. Privacy
VIII. Additional Information
A. Electronic Access and Filing
B. Small Business Regulatory Enforcement Fairness Act
I. Executive Summary
A. Purpose of the Regulatory Action
This final rule implements section 318 (``Commercial Balloon Pilot
Safety Act of 2018'') of Public Law 115-254, the FAA Reauthorization
Act of 2018. In addition, this final rule responds to National
Transportation Safety Board (NTSB) Safety Recommendation A-17-034,
which recommends that the FAA remove the medical certification
exemption in part 61 for commercial balloon pilots \1\ receiving
compensation for transporting passengers.
---------------------------------------------------------------------------
\1\ The FAA uses the term ``commercial balloon pilots'' in this
rule to refer to airmen conducting operations in a balloon for
compensation or hire, including operations involving the carriage of
persons or property.
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This final rule amends Sec. Sec. 61.3 and 61.23 of title 14 of the
Code of Federal Regulations (14 CFR) to require commercial balloon
pilots conducting
[[Page 71219]]
operations for compensation or hire to hold a valid second-class
medical certificate. However, this final rule will continue to allow
pilots to provide flight training in balloons without requiring a
medical certificate. The rule also amends the table setting forth
medical certificate durations in Sec. 61.23(d) for consistency with
amendments to Sec. Sec. 61.3 and 61.23(a) and (b).
The FAA is also making two miscellaneous amendments. First, the FAA
is amending sections of part 61 to allow persons to act as pilot in
command (PIC) during a special medical flight test authorized under
part 67 without holding a medical certificate.
The second is making a minor change to regulations amended or
established by the Alternative Pilot Physical Examination and Education
Requirements final rule to \2\ allow a required pilot flightcrew member
who is not acting as PIC to operate under BasicMed.
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\2\ The Alternative Pilot Physical Examination and Education
Requirements final rule amended sections of part 61 and established
part 68 to allow persons to conduct certain flight operations in
powered aircraft while exercising the privileges of a private pilot
certificate without holding a medical certificate issued under part
67. The provisions established by Alternative Pilot Physical
Examination and Education Requirements final rule will be
collectively referred to in this preamble as BasicMed. 82 FR 3149
(Jan. 11, 2017).
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B. Changes Made in This Final Rule
The FAA published a Notice of Proposed Rulemaking (NPRM), Medical
Certification Standards for Commercial Balloon Operations on November
18, 2021 (86 FR 64419). This rulemaking finalizes the proposal, without
change.
C. Summary of the Costs and Benefits
This final rule will generate costs for balloon pilots to obtain a
second-class medical certificate and for some pilots to seek an
Authorization for Special Issuance of a Medical Certificate (special
issuance). There will also be costs to the FAA to implement this
requirement in terms of reviewing and processing submissions related to
certification. The FAA estimates the present value of total costs over
ten years is $2.4 million to $16.3 million with a mid-estimate of $6.9
million at a 7 percent discount rate and $2.9 million to $19.9 million
with a mid-estimate of $8.4 million at a 3 percent discount rate. The
annualized costs over ten years are $0.3 million to $2.3 million with a
mid-estimate of $1.0 million at a 7 percent discount rate and $0.3
million to $2.3 million with a mid-estimate of $1.0 million at a 3
percent discount rate. The wide range in the cost estimates primarily
reflects the uncertainty on the number of commercial balloon pilots who
will seek medical certification.
The benefits of the final rule include enhanced safety of
commercial balloon operations through reduced risks of accidents,
fatalities, and injuries caused by medical impairment of balloon
pilots.
II. Authority for This Rulemaking
The FAA's authority to issue rules on aviation safety is in Title
49 of the United States Code. Section 106 describes the authority of
the FAA Administrator. Subtitle VII, Aviation Programs, describes in
more detail the scope of the Agency's authority.
The FAA is issuing this final rule under the authority described in
Section 44701, General Requirements; Section 44702, Issuance of
Certificates; and Section 44703, Airman Certificates. Under these
sections, the FAA prescribes regulations and minimum standards for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. The FAA is also authorized to issue
certificates, including airman certificates and medical certificates,
to qualified individuals. This rulemaking is within the scope of that
authority.
Further, Section 318 of Public Law 115-254 directs the
Administrator to ``revise 14 CFR 61.3(c) (relating to second-class
medical certificates) to apply to an operator of an air balloon to the
same extent such regulations apply to a pilot flightcrew member of
other aircraft.''
III. Background
A. Need for Regulation
On the morning of July 30, 2016, a hot air balloon struck power
lines and burst into flames over a pasture near Lockhart, Texas,
killing all 15 passengers and the pilot. The flight was conducted in a
balloon (N2469L) operated by Heart of Texas Hot Air Balloon Rides under
part 91 as a sightseeing passenger flight. The pilot was exercising the
privileges of a commercial pilot certificate.
Through its investigation, the NTSB determined that the pilot had
been diagnosed with depression and attention deficit hyperactivity
disorder (ADHD) \3\ and identified medications found in the pilot's
system that are known to cause impairment.\4\
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\3\ ADHD is known to cause cognitive deficits that may affect
decision-making and, ultimately, safety of flight.
\4\ The medications identified by the NTSB are listed on the
FAA's ``Do Not Issue'' and ``Do Not Fly'' lists found in the AME
Guide. https://www.faa.gov/about/office_org/headquarters_offices/avs/offices/aam/ame/guide/pharm/dni_dnf/.
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The NTSB determined that the probable cause of this accident was
the pilot's pattern of poor decision-making that led to the initial
launch, continued flight in fog and above clouds, and descent near or
through clouds that decreased the pilot's ability to see and avoid
obstacles. The NTSB further determined that (1) the pilot's impairing
medical conditions and medications, and (2) the FAA's policy to not
require a medical certificate for commercial balloon pilots, were
contributing factors in the accident.\5\
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\5\ NTSB Accident Report NTSB/AAR-17/03 PB2018-100161 at p. 49.
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Prior to the Heart of Texas accident, the FAA generally considered
commercial balloon operations to be a low-risk and extremely small
segment of aviation in the United States. Research conducted by the FAA
revealed 54 commercial hot air balloon accidents between 2003 and 2013,
including four fatal accidents. In 2015, commercial sightseeing balloon
operations represented 0.057% of the flight hours of total civil
aircraft operations.\6\ Prior to this accident, pilots conducted
commercial balloon operations in the U.S. for decades without any
accidents specifically attributed to medical deficiencies.
---------------------------------------------------------------------------
\6\ FAA Docket Submission to the National Transportation Safety
Board for the investigation of the Heart of Texas Hot Air Balloon
Accident Balony Kubicek BB85Z balloon, N2469L, Lockhart, Texas; July
30, 2016, Dated April 19, 2017. Page 6.
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In response to the Heart of Texas accident, the FAA worked with
industry advocacy organization Balloon Federation of America (BFA) to
support its 2017 Envelope of Safety Program.\7\ The voluntary program
promoted safety within the commercial balloon industry by educating
consumers with information when making balloon ride purchase decisions
and offered multiple tiers of safety accreditation by the BFA. While
the FAA supports the efforts of the BFA to enhance safety and
professionalism of the industry while providing consumers with more
information when choosing a commercial balloon ride operator, the
agency notes that not all balloon operators are members of the BFA, and
BFA members are not required to adhere to any specific standards in
order to maintain professional membership. Consequently, the FAA
considered BFA's efforts to achieve voluntary compliance with industry
standards to be insufficient alone to address the need for additional
oversight of airmen
[[Page 71220]]
conducting balloon operations for compensation or hire.
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\7\ https://www.bfa.net/88888979-news/1579-envelope-of-safety-program-announced.
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In Section 318 (``Commercial Balloon Pilot Safety Act of 2018'') of
Public Law 115-254, The FAA Reauthorization Act of 2018 (the Act),
Congress directed the FAA to ``revise section 61.3(c) of Title 14, Code
of Federal Regulations (relating to second-class medical certificates),
to apply to an operator of an air balloon to the same extent such
regulations apply to a pilot flightcrew member of other aircraft.''
B. National Transportation Safety Board Recommendations
The NTSB made two Safety Recommendations in response to the 2016
Heart of Texas accident. Safety Recommendation A-17-034 urged the FAA
to ``Remove the medical certificate exemption in 14 [CFR] 61.23(b) for
pilots who are exercising their privileges as commercial balloon pilots
and are receiving compensation for transporting passengers.'' Safety
Recommendation A-17-045 urged the FAA to ``analyze your current
policies, procedures, and tools for conducting oversight of commercial
balloon operations in accordance with your Integrated Oversight
Philosophy, taking into account the findings of this accident; [and]
based on this analysis, develop and implement more effective ways to
target oversight of the operators and operations that pose the most
significant safety risks to the public.''
The FAA agreed with the safety benefits of Safety Recommendation A-
17-034 \8\ and stated its intention to add the recommended change to
its rulemaking agenda. The FAA responded to Safety Recommendation A-17-
045 \9\ by initiating a plan to develop and implement more effective
ways to target oversight of operators posing the most significant
safety risk to the public. The FAA identified and increased
surveillance on the operators of the largest classes of balloons using
information obtained from the Civil Aviation Registry, repair stations,
and industry.
---------------------------------------------------------------------------
\8\ NTSB Safety Recommendation A-17-034 https://www.ntsb.gov/_layouts/ntsb.recsearch/Recommendation.aspx?Rec=A-17-034.
\9\ NTSB Safety Recommendation A-17-045 https://www.ntsb.gov/_layouts/ntsb.recsearch/Recommendation.aspx?Rec=A-17-045.
---------------------------------------------------------------------------
C. Summary of the NPRM
The FAA proposed amending the exception to hold a medical
certificate for balloon pilots in Sec. 61.3(c)(2)(vi) by limiting it
to certain types of balloon operations. Specifically, the FAA proposed
that any person holding a pilot certificate with a balloon class rating
and exercising the privileges of a private pilot certificate in a
balloon; or providing flight training in a balloon in accordance with
Sec. 61.133(a)(2)(ii) is not required to hold a medical certificate.
As a result of the amendment, the general requirement in Sec.
61.3(c)(1) for a person to hold a medical certificate to serve as a
pilot flight crewmember would apply to balloon pilots conducting
operations for compensation or hire in a balloon (other than flight
training) to hold a medical certificate issued under part 67.
Section 61.23 sets forth the specific requirements for when a
particular class of medical certificate is required. Under Sec.
61.23(a)(2)(ii), a second-class medical certificate generally is
required when exercising the privileges of a commercial pilot
certificate. Currently, under Sec. 61.23(b)(3), a second-class medical
certificate is not required when exercising the privileges of a pilot
certificate with a glider category rating or balloon class rating in a
glider or balloon, as appropriate.
First, the NPRM proposed to amend Sec. 61.23(a)(2) to add a
requirement for any person exercising the privileges of a commercial
pilot certificate for compensation or hire in a balloon to hold a
second-class medical certificate. Second, the NPRM proposed to remove
the allowance in Sec. 61.23(b) by specifying that a medical
certificate is not required when exercising the privileges of a private
pilot certificate with a balloon class rating in a balloon or when a
person is exercising the privileges of a commercial pilot certificate
with a balloon class rating in a balloon and providing flight training
in accordance with Sec. 61.133(a)(2)(ii).
Section 61.23(d) includes a table providing the duration for each
class of medical certificate depending on several factors, including
the medical certificate privilege that is being exercised. In order to
maintain consistency with other medical certificate privileges in Sec.
61.23(d), the NPRM proposed related amendments to the table of medical
certificate durations at Sec. 61.23(d)(1)(iii) and (d)(2)(i).
Specifically, the NPRM proposed to add persons who are exercising the
privileges of a commercial pilot certificate (other than for flight
training) in a balloon to the established medical certificate duration
table in Sec. 61.23(d).
In addition, the NPRM proposed amendments to alleviate confusion
and eliminate burdens for persons obtaining special medical flight
tests and for persons operating under BasicMed.
First, the NPRM proposed amending Sec. Sec. 61.3(c)(2) and
61.23(b) to allow persons to act as PIC during a special medical flight
test authorized under part 67 without holding a medical certificate.
Second, the NPRM proposed amending several sections to alleviate
certain burdens that resulted from the BasicMed final rule.
Specifically, the NPRM proposed amending Sec. Sec. 61.3(c)(2)(xiv),
61.23(c)(3)(i)(C) through (E), 61.113(i), 68.3(a) and (b), and 68.9(a)
by expanding the requirements to allow required pilot flightcrew
members to operate under BasicMed in addition to those individuals
acting as PIC.
D. General Overview of Comments
The FAA considered 192 comments received during the 60-day public
comment period. Of the comments received, 15 were out of scope, 17 were
generally supportive of the proposed rule, and 112 generally opposed
the rule as proposed. A significant number of commenters (142
commenters) suggested changes to the proposed rule. The remaining
comments expressed neither support nor opposition to the rule. The
majority of commenters were individuals. Two industry advocacy
organizations submitted comments, as well as the NTSB.
IV. Discussion of Comments and the Final Rule
This rule amends part 61 to require a person who holds a commercial
pilot certificate with a lighter-than-air category and balloon class
rating to hold a valid second-class medical certificate when exercising
the privileges of that certificate in a balloon for compensation or
hire, unless that person is conducting flight training in accordance
with Sec. 61.133(a)(2)(ii).
Specifically, the exception in Sec. 61.3(c)(2)(vi) is amended to
reflect that any person holding a pilot certificate with a balloon
class rating who is exercising the privileges of a private pilot
certificate in a balloon; or providing flight training in a balloon in
accordance with Sec. 61.133(a)(2)(ii) is not required to hold a
medical certificate. By revising the exception in Sec. 61.3(c)(2)(vi),
balloon pilots conducting operations for compensation or hire in a
balloon (other than flight training), such as carrying passengers or
property and advertising operations, are required under Sec.
61.3(c)(1) to hold a medical certificate issued under part 67.
Further and for consistency across the regulations, the FAA is
amending Sec. 61.23(a)(2) to require any person exercising the
privileges of a commercial pilot certificate for compensation or hire
in a balloon, except when conducting flight training, to hold a second-
class medical
[[Page 71221]]
certificate; and Sec. 61.23(b) to remove the allowance to exercise the
privileges of a balloon pilot certificate without a medical
certificate. Additionally, the FAA adds an exception at Sec.
61.23(b)(4)-(5) to explain under what circumstances balloon operations
are excepted from the requirement to hold a second-class medical
certificate.
A. Application of Medical Certificate Requirement to Operations Based
on Size of Envelope or Passenger Capacity
Seventy-two commenters recommended that the proposed rule should
only apply to certain operations based on size of envelope or number of
people in the basket. Commenters proposed a passenger threshold ranging
from 3 or more to 8 or more people. The Balloon Federation of America
(BFA) stated that ``any medical requirement for commercial balloon
pilots should be limited to those operating balloons of such size as to
legally transport 6 or more passengers.'' Other commenters described
the threshold as balloons with envelopes with volumes ranging from
77,682 cubic feet to 180,000 cubic feet.
Many of the commenters emphasized that these thresholds separated
small-scale commercial balloonists from large-scale professional
balloon ride operators. A common sentiment among commenters was that
small commercial balloon operators were being over-regulated as a
result of mishaps from larger balloon operators. Some commenters
suggested that the NTSB safety recommendations were specifically
directed toward the safety of larger passenger-carrying balloons.
The FAA notes that the second-class medical certification
requirement represents a minimum safety standard for commercial
operations. For non-air carrier operations, the regulatory requirements
for medical certification do not vary based on the number of passengers
aboard the aircraft or the size of the balloon. The FAA has long held
that a passenger who engages with an aircraft operator in common
carriage has a higher expectation of safety and oversight. The FAA
notes that while operators of smaller balloons generally carry fewer
passengers per year, the risk to any individual passenger in a smaller
balloon is not significantly different than the risk to which they are
exposed in a larger balloon.
The FAA does not concur with the assertion that the NTSB safety
recommendations were specifically directed toward the safety of larger
passenger-carrying balloons. Recommendation A-17-034 recommends that
the FAA ``remove the medical certification exemption in 14 Code of
Federal Regulations 61.23(b) for pilots who are exercising their
privileges as commercial balloon pilots and are receiving compensation
for transporting passengers.'' The FAA notes that while the NTSB
directed the recommendation towards operations receiving compensation
for transporting passengers, the NTSB did not distinguish between
classes of operators in terms of size or passenger carrying capacity.
Likewise, Congress included no distinction based on size or passenger-
capacity in Section 318 when it directed the FAA to remove the
exception from medical certification for commercial balloon pilots.
Accordingly, this medical certification requirement will apply to
all holders of a commercial pilot certificate with a lighter-than-air
category balloon class rating when exercising the privileges of that
certificate in a balloon for compensation or hire, unless that person
is conducting flight training, regardless of the size of the aircraft
or the number of passengers carried.
B. Application of Rule to Commercial Balloon Operations Without
Passengers
The medical certification requirement in this final rule does not
provide an exception to commercial operations not involving the
carriage of passengers.
Several commenters contended that commercial balloon operations
that do not involve the carriage of passengers for compensation or hire
should not require the PIC to hold a second-class medical certificate.
BFA stated that ``there is no more risk to the flying public in these
activities, which include commercial advertising contract flying and
special shape flying, than private ballooning for sport.'' The BFA
strongly opposed the inclusion of commercial operations that do not
conduct paying passenger activities.
Commenters to the proposed rule provided multiple examples of how
commercial operations frequently occur without passengers. For example,
one commenter operates a one-of-a-kind specially shaped balloon that is
hired by events for its uniqueness and popularity. The city of Albany
Parks & Recreation noted that the proposed rule would have a
significant impact on their ability to recruit pilots for their annual
festival. This commenter noted that ``the second-class medical
requirement may significantly impact the number of balloons available
for the festivals as some pilots may decide to forego the expense and
trouble.''
Another commenter said that many companies incorporate balloons
into their marketing strategies, noting that these balloons are
utilized as portable billboards to either be displayed while tethering
on the ground or while conducting promotional flights during balloon
festivals. One commenter observed that some events exclude private
pilots from attending ``since they interpret that getting your room,
show up money or propane as `compensation'.'' \10\
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\10\ The FAA notes that compensation for display of an aircraft
from the ground does not constitute a commercial operation. See
Legal Interpretation to Karen Torres (March 17, 2011). A balloon
operator may be compensated for attending an event and displaying a
balloon, including inflating the envelope while the aircraft remains
on the ground. An operation is generally considered a commercial
operation when the operator is compensated to fly the aircraft, with
or without passengers. Further, a balloon pilot may exercise private
pilot privileges to fly the balloon at an event he or she received
compensation for attending, provided the compensation was not
provided with the expectation that the operator fly the balloon
during the event. See Legal Interpretation to Tucker Comstock (Sept.
8, 1977); see also Legal Interpretation to Gary Bruce Eaton (Dec. 7,
2012).
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Section 318 of the FAA Reauthorization Act of 2018 directed the FAA
to ``revise section 61.3(c) of title 14, Code of Federal Regulations
(relating to second-class medical certificates), to apply to an
operator of an air balloon to the same extent such regulations apply to
a pilot flightcrew member of other aircraft.''
The FAA proposed this rule specifically to implement section 318 of
the FAA Reauthorization Act of 2018. Accordingly, the FAA proposed a
requirement that any person exercising the privileges of a commercial
pilot certificate for compensation or hire in a balloon, except when
conducting flight training, hold a second-class medical certificate.
The proposed rule made no distinction regarding whether the affected
operation involved the carriage of passengers for compensation or hire,
instead describing affected operations as including, but not limited
to, operations for purposes of passenger sightseeing, aerial
advertising, maintenance test flights, and research and development
flights.
FAA regulations require a second-class medical certificate for all
commercial pilots of fixed-wing aircraft and rotorcraft, regardless of
whether the operation involves the carriage of passengers. Further, the
statute does not allow an exception for commercial operations not
involving the carriage of passengers. Therefore, in accordance with the
express statutory language in Section 318 of the FAA Reauthorization
Act of 2018, the FAA will require all commercial balloon pilots to hold
a
[[Page 71222]]
second-class medical certificate, as proposed in the NPRM.\11\
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\11\ The FAA excluded flight training because the legislation
directed that the FAA to apply medical certification to commercial
balloon pilots to the same extent as commercial pilots of other
aircraft. The FAA has historically treated medical certification for
persons conducting flight training different from other commercial
operations.
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C. Drug and Alcohol Testing
As discussed in the NPRM, the FAA considered whether to expand the
definition of an operator under Sec. 91.147 to include commercial
balloon operations carrying passengers for compensation or hire. Doing
so would have created a new requirement for such operators to obtain a
Letter of Authorization (LOA) from the FAA, which would include a
requirement to implement drug and alcohol testing programs in
accordance with 14 CFR part 120. The FAA specifically sought comment on
whether drug and alcohol testing should be required for commercial
balloon operations.
Several commenters noted that the rule is insufficient because it
lacks drug and alcohol testing. Most of the commenters expressing this
sentiment used it as a rationale for opposing the rule, pointing out
that holding a medical certificate does not compel a person to be
randomly tested for prohibited substances and, as such, would have done
little to prevent the Lockhart, Texas and Albuquerque, New Mexico \12\
accidents.
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\12\ On June 26, 2021, the pilot and 4 passengers of a balloon
were killed in an accident in Albuquerque, New Mexico. The accident
is currently under investigation by the NTSB. (NTSB Accident No.
WPR21FA242).
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The FAA considered this alternative and concluded that such a
requirement goes beyond the scope of the statutory mandate. The FAA
established the Sec. 91.147 provision in the 2007 National Air Tour
Safety Standards final rule \13\ following a pattern of accidents in
powered aircraft. In that rule, the FAA specifically excluded balloon
operations. The FAA notes that any future revisions of National Air
Tour Safety Standards will require a risk-based assessment of need
based on available safety data.
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\13\ 72 FR 19382, Apr 18, 2007.
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While medical certification under part 67 does not include a drug
and alcohol testing component, it does require the applicant to
authorize the FAA to access the applicant's National Driver Register
(NDR) records. The NDR Problem Driver Pointer System (PDPS) identifies
records on individuals whose privilege to operate a motor vehicle has
been revoked, suspended, canceled or denied, or who have been convicted
of serious traffic-related offenses. Even if the applicant fails to
disclose these convictions on the medical certificate application, the
FAA receives a report from the NDR, providing an additional safeguard
and mechanism for verifying the accuracy of the information provided by
the airman.
In the case of the pilot of the Lockhart accident, the accident
pilot had a 20-year history of drug and alcohol convictions. Even if
the airman had omitted his history of traffic offenses on an
application for a medical certificate, the FAA would likely have been
made aware of the motor vehicle actions from NDR records and had the
opportunity to deny the application for a medical certificate based on
evidence of substance dependence or substance abuse, in accordance with
Sec. Sec. 67.207(a)(4), 67.207(b), 67.107(a)(4), and 67.107(b).
Accordingly, this final rule does not set forth a regulatory
requirement for commercial balloon operators and pilots to implement a
drug and alcohol testing program at this time.
D. Miscellaneous Issues
Whether Commercial Ballooning Poses a Risk Significant Enough To
Warrant Additional Regulation
Multiple commenters stated that ballooning is an insignificant
activity in the National Airspace System (NAS) and should not be
subject to additional regulation.
The FAA does not consider commercial ballooning an insignificant
activity. The FAA notes that the Lockhart, Texas and Albuquerque, New
Mexico accidents demonstrate that ballooning is not insignificant, and
the potential risk for catastrophic accidents is not insignificant.
While the FAA concurs with commenters who asserted that balloon
operations represent a small percentage of the total operations in the
NAS, the FAA notes that balloons are frequently used for carrying
passengers for compensation and present a risk that justifies a level
of medical oversight equivalent to that of pilots of powered aircraft
for certain operations such as commercial sightseeing operations.
Further, the NTSB and Congress have identified this risk and called on
the FAA to extend the requirements for medical certification to balloon
pilots operating for compensation or hire.
Effects to the Industry Due to the Cost and Ability To Comply With the
Rule
A number of commenters expressed concerns that the final rule would
greatly reduce the number of balloon pilots due to costs associated
with obtaining a second-class medical certificate. The FAA acknowledges
that in some cases, some commercial operators--particularly low-volume
commercial operators--may opt to no longer conduct commercial
operations due to the cost of obtaining a medical certificate
outweighing the marginal economic benefit of conducting operations for
compensation. While some pilots may leave the industry, other balloon
pilots may opt to enter the commercial balloon industry to fill the
void left by departing commercial pilots.
While the FAA does not expect a significant decrease in the
availability of balloon pilots, changes in supply of balloon pilots
could affect prices as well. The regulatory economic analysis does not
quantify any potential changes in consumer and producer surplus from
changes in supply. If the rule effectively screens out certain
individuals for disqualifying medical conditions as intended, any
potential adverse effects on individual applicants should be offset by
the safety gains to the public. Nevertheless, the cost to obtain a
second-class medical certificate is unlikely to be the sole reason to
cause a commercial balloon pilot to discontinue commercial operations.
The FAA estimates the cost per pilot to obtain a second-class medical
certificate would be between $160 and $685 annually, depending on
whether a special issuance would be necessary. This amount equates to
about 0.06% to 0.37% of average annual revenues for small entities.\14\
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\14\ See Final Regulatory Flexibility Analysis discussed later
in this preamble.
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The opportunity cost (including the time and fees) of seeking a
second-class medical certification for some pilots may outweigh the
monetary gains of operating commercially, resulting in some pilots
opting not to seek medical certification. The FAA does not have
sufficient information to predict how the supply of commercial balloon
pilots would change as a result of this rule.
Multiple commenters stated that following the Heart of Texas
accident, the ballooning insurance providers have required all
commercial pilots flying balloons larger than 120,000 cubic feet to
hold a second-class medical certificate. The revised regulatory
economic analysis has factored in roughly 8.8% out of 4,869 commercial
pilots with balloon class ratings who probably fall into this group,
based on 2021 data from the Airmen Certification Database. The intent
of the rule is to provide safety protection for all balloon
[[Page 71223]]
passengers, not just passengers flying with companies operating larger
balloons.
Treatment of Balloon Operations for Compensation or Hire as Commercial
Aviation Operations
Commenters acknowledged that, while they do receive compensation,
they do not consider themselves ``commercial'' in a traditional sense.
Many commenters used examples of being offered limited compensation in
the form of lodging or fuel to participate in ballooning events, often
without the expectation to carry passengers. Several commenters noted
that many commercial operators only occasionally conduct operations for
compensation or hire and do so to subsidize the cost of ballooning.
The concept of conducting commercial operations for compensation or
hire for the purpose of defraying the cost of flying is not unique to
ballooning. The FAA has long held that when a passenger responds to an
offer made by an operator to the public to provide an aeronautical
service in exchange for receipt of anything of value that is contingent
on the pilot operating the aircraft, the public expects a higher level
of oversight and safety assurance. The FAA does not delineate the
volume of passenger activity for purposes of defining medical
eligibility requirements.
The FAA notes that there are certain circumstances in which a pilot
may accept limited compensation for operating an aircraft when
exercising private pilot privileges. These exceptions are enumerated in
Sec. 61.113(b) through (h). Balloon pilots exercising private pilot
privileges may share expenses with passengers under Sec. 61.113(c),
provided those expenses are limited to items such as fuel, oil, airport
expenditures, or rental fees. Further, a pilot sharing expenses under
Sec. 61.113(c) may not pay less than the pro rata share of the
operating expenses, and must not engage in common carriage by ``holding
out'' to the public.
Suggestions for Alternative Methods of Establishing Medical Eligibility
Several commenters suggested alternative methods of meeting medical
eligibility requirements. A few commenters suggested the FAA should
allow BasicMed in lieu of a second-class medical certificate for
commercial balloon operations. Multiple commenters proposed to allow
state division of motor vehicle (DMV) record checks or NDR checks in
lieu of medical certificate requirements. Finally, commenters suggested
the medical certificate requirement not be applied to existing
commercial pilot certificate holders.
The FAA does not support allowing balloon pilots exercising
commercial pilot privileges to establish medical eligibility under
BasicMed. Section 318 of the 2018 FAA Reauthorization Act directed the
FAA to revise regulations relating to second-class medical certificates
to apply to commercial balloon pilots to the same extent such
regulations apply to pilots of other aircraft.
Section 2307 of the FAA Extension, Safety, and Security Act of 2016
directed the FAA to issue or revise regulations to establish physical
examination and education requirements, resulting in BasicMed. BasicMed
was intended by statute to serve as an alternative means of
establishing medical eligibility for limited non-commercial operations
by persons exercising the privileges of a private pilot certificate.
Section 2307 specifically excluded operations conducted for
compensation or hire and specifically prohibited passenger or property
carried for compensation or hire.
The FAA does not concur with the suggestion that the FAA implement
motor vehicle record checks for commercial balloon pilots instead of a
second-class medical certificate requirement. A motor vehicle record
alone provides an incomplete picture of a person's medical history and
does not provide enough information to determine whether that person
has a medical condition that would prevent him or her from safely
operating an aircraft. Further, the medical eligibility requirements to
hold a driver's license are not consistent from state to state and,
therefore, may not be sufficient to ensure the safety of pilots
operating a balloon carrying passengers for compensation or hire.
When applying for a medical certificate in MedXPress, an applicant
authorizes the NDR, through a designated State Department of Motor
Vehicles, to furnish to the FAA information pertaining to his or her
driving record consistent with 49 U.S.C. 30305(b)(3). The NDR PDPS
identifies records on individuals whose privilege to operate a motor
vehicle has been revoked, suspended, canceled or denied, or who have
been convicted of serious traffic-related offenses.
NDR checks are just one part of the medical screening process and
are insufficient alone to screen for disqualifying medical conditions.
A person's motor vehicle arrest record reveals only the times an
individual was arrested while operating a motor vehicle under the
influence of alcohol or another drug. Further, an NDR check alone would
not reveal evidence of a substance abuse problem if the applicant does
not operate a motor vehicle while intoxicated. Most substantially, an
NDR check alone would not uncover the myriad of potential non-substance
abuse-related medical conditions that are evaluated in conjunction with
a medical examination conducted under part 67.
The FAA does not consider the concept of excluding existing
commercial pilot certificate holders from having to comply with a
medical certificate requirement to be in the interest of flight safety.
Existing commercial pilot certificate holders pose a similar medical
risk to the NAS as new commercial pilot certificate holders. Such an
exception for existing commercial pilots would remove this group from
the safety benefit of medical certification without any additional
medical risk mitigation.
Insurance Requirements
Commenters contended the rule is unnecessary because commercial
insurers already require medical certificates. One commenter reported
that insurance companies now require second-class medical certification
for pilots of large passenger-carrying hot air balloons. The commenter
added that the insurance requirement makes the proposed rule redundant
and unnecessary.
Commercial balloon operators are not required by regulation to be
insured, so withholding a regulatory requirement to hold a medical
certificate and relying on insurance companies and operators to comply
voluntarily with the insurance requirements would be insufficient alone
to address the need for additional oversight of airmen conducting
balloon operations for compensation or hire.
The FAA notes that commercial insurance requirements are not
uniform and apply only to operators who choose to obtain such coverage
and comply with the policy conditions. Further, insurance requirements
for a medical certificate are not universal. Insurance providers
typically require medical certificates for the pilots of commercial
operations that are larger in terms of passenger capacity and number of
operations.
Focus on FAA Enforcement
Commenters noted that the FAA should focus on enforcement of
existing rules and/or surveillance for balloon operators, rather than
put forward new
[[Page 71224]]
regulations requiring medical certification.
The FAA establishes regulatory standards to ensure safe operations
in the NAS. The FAA's system is largely based on, and dependent upon, a
culture of compliance with regulatory standards within the regulated
community. FAA personnel use compliance, administrative, or legal
enforcement actions to uphold the public's safety interest in ensuring
that all regulated persons conform their conduct to statutory and
regulatory requirements.
The FAA applies risk-based analysis to determine how, when, and
where oversight and surveillance activities take place. The Integrated
Oversight Philosophy allows both certificate holders and non-
certificate holders to work with the FAA to ensure corrective action is
appropriate and aims to address the root cause(s) of safety issues.
Using this philosophy, the FAA oversight focus has been on existing
surveillance, education, and awareness to the entire balloon industry
to reduce the accident rate and improve balloon safety.
Comparison of Balloon and Glider Operations
Multiple commenters noted that the FAA stated in the NPRM that
gliders were out of scope because they carried only 1 or 2 passengers.
The commenters argued that based on the FAA's rationale, balloons that
carry 2 passengers or less should be excluded as well.
The FAA proposed this rule specifically to implement section 318 of
the FAA Reauthorization Act of 2018 and respond to NTSB Safety
Recommendation A-17-034, which recommended that the FAA remove the
medical certification exemption in part 61 for commercial balloon
pilots receiving compensation for transporting passengers. Section 318
directed the FAA to revise regulations as they relate to operators of
balloons. The FAA considered whether glider operations conducted for
compensation or hire should be included in the scope of this rule. The
FAA ultimately determined that as a category of aircraft, the safety
record and general operational risk profile of gliders carrying
passengers for compensation or hire did not warrant further regulatory
oversight concerning the medical suitability of commercial glider
pilots.
Efficacy of Medical Certificate Requirement
Several commenters expressed doubt that a medical certification
requirement will reduce the accident rate of commercial balloon
operations. Commenters noted that inflight medical incapacitation is
rare, and the FAA medical standards do not address the operational
considerations of ballooning versus other aircraft. They contended the
FAA lacks sufficient data to support a medical certification
requirement. Further, they contended that a medical certificate
requirement would not have affected the outcome of the two most recent
significant fatal commercial accidents in Lockhart, Texas and
Albuquerque, New Mexico.
The FAA is statutorily mandated to establish standards necessary to
determine that an airman is physically able to perform the duties
related to the privileges of their pilot certificate. See 49 U.S.C.
44703. Further, the FAA is statutorily mandated to revise regulations
related to second-class medical certificates to apply to commercial
balloon pilots.
In regards to whether medical standards address the operational
considerations of ballooning, the FAA notes that medical certification
standards address multiple dimensions of medical qualification,
including medical factors that could diminish judgment and decision-
making in addition to sudden physical incapacitation. While the
standards do not apply to any specific type of aircraft operation, the
standards do address general categories of medical considerations that
are applicable to balloon operations. These categories include: vision;
ear, nose, and throat; equilibrium; mental; neurological;
cardiovascular; and general health. The standards established under
part 67 are minimum standards. However, the Federal Air Surgeon does
have the discretion to authorize special issuance of a medical
certificate or a Statement of Demonstrated Ability (SODA), which offers
flexibility for the FAA to issue a medical certificate based on the
individual circumstances of an applicant.
As noted in the proposed rule, the 2016 Lockhart accident served as
an example of how a lack of medical oversight allowed the pilot to
continue to operate a balloon for compensation or hire in spite of a
questionable medical history. While instances of sudden inflight
incapacitation are rare, there are documented cases of events
occurring. Medical incapacitation incidents are often not reported if
no accident occurred. When an accident does occur, it can be difficult
to pinpoint whether medical issues of the pilot were a factor, as
evidence is often limited to the pilot's available medical records,
postmortem toxicology and autopsy reports. Consequently, it is
difficult to quantify the impact of medical factors on aviation safety.
While medical certification cannot completely mitigate the risk of
an accident due to a medical condition of the pilot, the public holds
an expectation for a higher level of operational oversight when the
flight is conducted for compensation or hire. One method the FAA has to
accomplish this objective is medical certification.
Medical Certificates for All Balloon Operations
One commenter suggested that medical certificates should be
required for all balloon operations.
The FAA will not extend the medical certificate requirement to
balloon pilots exercising private or sport pilot privileges. Non-
commercial balloon operations are among the lowest-risk operations in
the NAS and do not warrant the additional regulatory burden of medical
certification requirements. While pilots exercising the privileges of a
private pilot or sport pilot certificate in a balloon are not required
to hold a medical certificate, they must comply with the 14 CFR
61.53(b) requirement to abstain from operating an aircraft while that
person knows or has reason to know of any medical condition that would
make that person unable to operate in a safe manner. In addition, these
pilots have fewer privileges, and in the case of sport pilots, more
operational restrictions, than a commercial pilot holding his or her
flight services out to the public for compensation. The FAA has
determined that compliance with a prohibition from operating an
aircraft during a medical deficiency sufficiently mitigates the risk of
an accident in a balloon due to a medical-related issue in an operation
exercising private or sport pilot privileges.
E. Effective Date
Commenters recommended the FAA should delay the effective date of
the medical certificate requirement provision beyond 180 days. Most of
those comments suggested that the rule take effect one year after
publication. Commenters cited a lack of Aviation Medical Examiners
(AMEs), the ongoing COVID-19 public health emergency, and delays in
processing applications by the FAA.
Multiple commenters expressed concern that there are delays in
processing medical certificate applications if a special issuance is
required, preventing applicants from complying with the rule within 180
[[Page 71225]]
days. The BFA asserted that the process of obtaining a special issuance
is burdensome and may take months, or in some cases years, to obtain a
medical certificate.
The FAA proposed in the NPRM that compliance with the medical
certificate requirement become effective 180 days from publication of
the final rule. This would provide sufficient time for the majority of
affected persons to comply with this rule by obtaining a medical
certificate prior to the effective date. For reasons explained below,
the medical certificate requirement will go into effect on May 22,
2023, 180 days after publication of this rule.
Based on historical data, the FAA estimates that over 95% of
applicants, including those who need a special issuance, will have a
disposition within 150 days. Approximately 1% of all applicants for FAA
medical certificates are issued a denial. Of those denials, 95% of the
final dispositions resulted from a lack of response to FAA requests for
additional information. Only 4% of applicants take over 150 days for
certification. Many of these individuals have medical conditions, which
require mandatory periods of observation to demonstrate stability and/
or allow for the risk of recurrence to diminish.
The FAA acknowledges that pilots with certain medical conditions
may be required to obtain additional evaluation(s) prior to issuance of
a medical certificate. The FAA recommends that affected airmen,
especially those with known health conditions, initiate the process to
apply for a medical certificate in a timely manner, taking into
consideration the time needed to obtain relevant medical information
and the time necessary for the FAA to review. Individuals who delay
applying for a medical certificate risk loss of some operating
privileges due to the inability to comply with the requirement to hold
a second-class medical certificate.
Several commenters noted that the ongoing COVID-19 public health
emergency would affect the ability of balloon pilots to obtain a
medical certificate within 180 days. These commenters noted that there
is a limited availability of health care workers due to COVID-19.
Commenters did not provide evidence that COVID-19 continues to
limit the access to AMEs. While initial response to COVID-19 did result
in significant restrictions and more limited access to healthcare
facilities and physicians, access to AMEs has since returned to pre-
pandemic levels.
Multiple commenters noted that balloon pilots never had medical
certification requirements prior to this rule. BFA noted that a
significant proportion of commercial balloon pilots are older and at an
age where they likely have one or more medical conditions requiring a
special issuance. Accordingly, commenters suggested that, as a
population, balloon pilots will require more time to obtain a medical
certificate.
The FAA notes that, as a group, older pilots are more likely to
have medical conditions that need additional evaluation. The FAA does
not have evidence to support the assertion that balloon pilots are as a
population older than other pilots.
Multiple commenters noted a lack of available AMEs. One commenter
noted that there was only one AME serving Albuquerque, New Mexico.
The FAA notes that at the time of publication of the final rule,
AMEs were practicing at 2,056 locations across the United States,
including 13 locations in New Mexico. Of the 11 AMEs practicing at 13
locations in New Mexico, six were practicing in Albuquerque.\15\
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\15\ FAA Designee Management System, as of Oct 17, 2022. https://designee.faa.gov/#/designeeLocator.
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In the NPRM, the FAA proposed that the two miscellaneous amendments
be made effective 30 days after publication of the final rule. No
comments were received regarding the effective date of either
miscellaneous amendment. Accordingly, both provisions will become
effective on December 22, 2022, 30 days after publication of this rule.
F. Comments Regarding Miscellaneous Amendments
The FAA received generally supportive comments from individual
commenters and the Aircraft Owners and Pilots Association in regard to
the two miscellaneous amendments in the NPRM. The proposal to remove
the requirement for a medical certificate in order to act as PIC in a
special medical flight test received two supporting comments.
Accordingly, the FAA is implementing the amendments as proposed. To
allow persons to act as PIC during special medical flight tests, the
FAA is amending Sec. 61.3(c)(2) by adding new paragraph (xv), which
allows persons to act as PIC during authorized special medical flight
tests without holding a medical certificate. The FAA also adds a
parallel provision in Sec. 61.23(b)(12).
The proposal to extend BasicMed to persons serving as required
flightcrew members but not acting as PIC received ten supporting
comments. Accordingly, the FAA is implementing the amendments as
proposed. Specifically, the FAA is amending Sec. Sec. 61.3(c)(2)(xiv),
61.23(c)(3)(i)(C) through (E), 61.113(i), 68.3(a) and, 68.3(b), and
68.9(a) by expanding the requirements to include required pilot
flightcrew members.
V. Regulatory Notices and Analyses
Federal agencies consider impacts of regulatory actions under a
variety of executive orders and other requirements. 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 the 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. 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 that may
result in the expenditure by State, local, and tribal governments, in
the aggregate, or by the private sector, of $100,000,000 or more
(adjusted annually for inflation) in any one year. The current
threshold after adjustment for inflation is $165 million, using the
most current (2021) Implicit Price Deflator for the Gross Domestic
Product.
In conducting these analyses, the FAA has determined that this
rule: will result in benefits that justify costs; is not a
``significant regulatory action'' as defined in section 3(f) of
Executive Order 12866; may have a significant economic impact on a
substantial number of small entities; will not create unnecessary
obstacles to the foreign commerce of the United States; and will not
impose an unfunded mandate on State, local, or tribal governments, or
on the private sector.
A. Regulatory Impact Analysis
Benefits and Costs of This Rule
The final rule will generate costs for balloon pilots to obtain a
second-class medical certificate and for some pilots to seek
authorization through special issuance. There is a separate cost for
the FAA to implement this requirement in terms of reviewing and
processing submissions related to medical certification. The FAA
estimates the present value of total costs over ten years is $2.4
million to $16.3 million
[[Page 71226]]
with a mid-estimate of $6.9 million at a 7 percent discount rate, and
$2.9 million to $19.9 million with a mid-estimate of $8.4 million at a
3 percent discount rate. The FAA estimates the annualized costs over
ten years is $0.3 million to $2.3 million with a mid-estimate of $1.0
million at a 7 percent discount rate and $0.3 million to $2.3 million
with a mid-estimate of $1.0 million at a 3 percent discount rate. While
lack of data on the effectiveness of the rule prevents quantification
of benefits, the FAA anticipates the rule will enhance safety of
commercial balloon operations, including reduced risks of accidents,
fatalities, and injuries caused by medical impairment of balloon
pilots. The FAA estimates that it would take between 0.3 to 2.8 averted
fatalities in the next ten years for the benefits to breakeven with the
costs of this rule.
In addition to the requirement for commercial balloon pilots to
hold a second-class medical certificate, the rule made two
miscellaneous amendments. The first amendment addresses certain
inconsistencies in current regulations for conducting special medical
flight tests and the second amendment addresses inconsistencies
regarding who may operate under BasicMed. The FAA does not quantify the
effects of the two miscellaneous amendments, but anticipates there will
be minor cost savings. By allowing persons to receive special medical
flight tests under part 67 without holding a medical certificate, the
FAA aviation safety inspector will no longer have the burden of
assuming the responsibility as PIC while conducting a medical test
flight with an applicant. This also eliminates the inconsistency of
both having to hold a medical certificate for the purposes of receiving
a special medical flight test and needing the special medical flight
test to obtain a medical certificate. The amendment to extend BasicMed
eligibility to other required pilot flightcrew members reduces the
burden for those pilots not acting as PIC of having to hold a medical
certificate under current regulations and holds them to the same
standard as those pilots acting as PIC under BasicMed. This may also
result in more pilots seeking opportunities to serve as a safety pilot
by lowering the medical certificate barrier without compromising
safety. It also increases the number of pilots eligible to serve as
safety pilot, easing the burden of pilots with instrument privileges
conducting flights to meet recent flight experience requirements and
consequently increasing overall safety in the national airspace system.
Statement of Need
This rulemaking addresses the need for additional oversight of
airmen conducting balloon operations for compensation or hire by
implementing the statutory mandate under the Commercial Balloon Pilot
Safety Act of 2018 and NTSB Safety Recommendation A-17-034 to extend
second-class medical certification requirements to operators of
balloons. As discussed elsewhere in this document, the 2016 Heart of
Texas accident highlights the potential for a pilot's medical condition
to pose safety risks, which are not necessarily less than that of
powered aircraft sightseeing operations that require at least a second-
class medical certificate (e.g., commercial transportation of
skydivers, banner towing, or aerial photography). Following the 2016
Heart of Texas accident, there have been voluntary efforts by the
industry to raise the standard for balloon pilots, notably through the
Envelope of Safety Program. While incentives to ensure a certain level
of safety exist in the private market for commercial balloon
operations, it is unlikely in the absence of federal regulation that
all balloon pilots would choose to comply with the requirements of a
second-class medical certificate. At the same time, consumers may be
insufficiently aware of the risks associated with balloon pilots
operating under a lower standard to demand full compliance. Therefore,
this rulemaking is necessary to achieve a higher level of safety for
commercial balloon operations.
Data and Assumptions
This section summarizes key data sources and assumptions used
throughout the analysis:
Costs and benefits are estimated over 10 years.
Costs and benefits are presented in 2021 dollars.
The present value discount rate of seven and three percent
is used, as required by the Office of Management and Budget.
The cost for a medical examination fee with an AME is in
the following range: Low = $100, Mid = $150 or High = $200.\16\
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\16\ According to FAA subject matter experts and Phoenix East
Aviation, https://www.pea.com/blog/posts/the-faa-medical-exam-common-questions/, the cost per medical exam ranges from $100 to
$200.
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The hourly rate of a pilot (VPT) exercising their
commercial balloon rating varies greatly. Therefore, the FAA used the
following hourly wages: Low = $15, Mid = $31.50 or High = $48.\17\
---------------------------------------------------------------------------
\17\ According to the FAA subject matter experts, responses from
the Balloon Federation of America and online sources, the FAA
estimates a commercial balloon pilot earns from $15 to $48 an hour.
Online source: https://www.jobmonkey.com/uniquejobs3/hot-air-balloon-pilot-jobs/.
---------------------------------------------------------------------------
Vehicle operating cost per mile (VOC) as determined by the
Internal Revenue Service (IRS) is $0.16.\18\
---------------------------------------------------------------------------
\18\ https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2021. Accessed on April 21, 2021.
---------------------------------------------------------------------------
The FAA assumes 1.5 hours to complete the MedXPress
form.\19\
---------------------------------------------------------------------------
\19\ This estimate is consistent with FAA's estimated burden
hours associated with the MedXPress form 8500-8 approved under OMB
No. 2120-0034.
---------------------------------------------------------------------------
The FAA assumes 1 hour to complete a medical examination.
The FAA assumes 1 hour of travel time to and from an AME's
office.
Affected Entities
At the time of writing, the FAA used 2021 data from the Airmen
Certification database to identify pilots certificated as commercial
balloon pilots. There are currently 4,869 commercial pilots with
balloon class ratings. During the public comment period, the FAA
learned that most insurance providers have required commercial pilots
flying balloons larger than 120,000 cubic feet to hold a second-class
medical certificate. FAA sources indicate that of the 4,869 commercial
pilots with balloon class ratings, 427 balloon pilots (approximately
8.8% of total commercial balloon pilots) fall into this category.\20\
Therefore, the updated estimated number of balloon pilots without
medical certification in 2021 is 4,442.
---------------------------------------------------------------------------
\20\ FAA Airman Registry internal analysis as of July 2021.
---------------------------------------------------------------------------
This balloon class rating does not have an expiration date, and
unlike certain other pilot ratings, a person exercising the privileges
of a balloon class rating is not required to hold a valid first-,
second-, or third-class medical certificate. Because of this, there is
uncertainty in the number of commercial balloon pilots actively
exercising commercial pilot privileges. For this reason, the FAA
produced a low, mid, and high-range estimate of how many pilots would
possibly be affected by this final rule.
In addition to the current number of certificated pilots with a
commercial balloon rating, the FAA gathered data from the last 14 years
to estimate an average growth of newly certificated commercial balloon
pilots per year. Over the course of the last 14 years, from 2007
through 2020, there was, on
[[Page 71227]]
average, 56 newly certificated commercial balloon pilots per year.
As mentioned earlier, there is uncertainty with the number of
active pilots exercising their commercial balloon privileges. The FAA
assumes a low estimate of 20%, a mid-estimate of 50% and a high
estimate of 100% of the 4,442 impacted commercial pilots with a balloon
class rating. Table 1 displays the potential number of airmen that
would be affected by the final rule over the course of ten years. Note
that in the first year and thereafter, the number of impacted
commercial pilots includes an additional 56 newly certificated
commercial balloon pilots each year to account for growth over time.
Corresponding to the number of active balloon pilots is the number of
expected application submissions for second-class medical certificates
each year.
Table 1--Low, Middle and High Estimates of Active Balloon Pilots
------------------------------------------------------------------------
Year Low Middle High
------------------------------------------------------------------------
1............................................ 944 2,277 4,498
2............................................ 1,000 2,333 4,554
3............................................ 1,056 2,389 4,610
4............................................ 1,112 2,445 4,666
5............................................ 1,168 2,501 4,722
6............................................ 1,224 2,557 4,778
7............................................ 1,280 2,613 4,834
8............................................ 1,336 2,669 4,890
9............................................ 1,392 2,725 4,946
10........................................... 1,448 2,781 5,002
--------------------------
Total.................................... 11,960 25,290 47,500
------------------------------------------------------------------------
Benefits
The benefits of this rule come from the value of averted accidents
attributable to pilots operating commercial balloons with medical
deficiencies. While under current regulations, balloon pilots must
comply with Sec. 61.53(b), which states that ``a person shall not act
as pilot in command, or in any other capacity as a required pilot
flight crewmember, while that person knows or has reason to know of any
medical condition that would make the person unable to operate the
aircraft in a safe manner,'' the second-class medical certificate
requirement would provide greater assurances of safety to balloon
passengers and other balloon operations conducted for compensation or
hire. By requiring balloon pilots to undergo a medical certification
process, an AME will have the opportunity to identify potentially
impairing medical conditions and treatments thereof to ensure
sufficient mitigation of any associated risks.
To quantify the benefits from this rule, it is necessary to: (1)
forecast a baseline level of accidents attributable to medically
impaired balloon pilots in the absence of this rule and (2) estimate
the extent to which the medical certification requirement effectively
reduces the risk. Based on the FAA's analysis of the NTSB accident
database during the ten-year period from 2010-2020, the FAA finds that
there has been one accident, the Heart of Texas accident, where the
medical condition of the pilot was a factor. The Heart of Texas
accident resulted in 16 fatalities. The commercial pilot and all 15
passengers were killed, and the balloon was destroyed by impact forces
and post-crash fire. For an accident of this magnitude, the FAA
estimates that the social cost associated with the loss of life alone
is $185.6 million using a value of statistical life of $11.6
million.\21\ Additional costs of a similar accident would include non-
fatal injuries, the value of property loss and damage as well as the
cost of the accident investigation and clean-up efforts. However, the
FAA currently does not have enough information to monetize those
additional costs.
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\21\ Value of a statistical life in 2020 is $11.6 million. See
DOT published values at https://www.transportation.gov/office-policy/transportation-policy/revised-departmental-guidance-on-valuation-of-a-statistical-life-in-economic-analysis.
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The FAA finds that the requirement for a second-class medical
certificate could have prevented the Heart of Texas accident if: (1)
information made available through the NDR database as part of the
medical review process revealed the pilot's history of drug- and
alcohol-related traffic offenses and resulted in a disqualification,
(2) a medical review either prompted effective treatment of or
disqualification for the pilot's medical conditions (depression and
ADHD), or (3) discussion of the use of certain medications with an AME
would have resulted in the pilot adjusting his behavior to avoid usage
as a PIC during a balloon operation.
Due to the infrequency of such events and limitations in the
available data, it is difficult to quantify and monetize the benefits
of the rule. The FAA intended to update its estimates of quantified
benefits for the final rule based on additional information and data
identified during the comment period. Specifically, the FAA requested
information and data, including references and sources that could be
used to predict the number of similar accidents that may occur in the
future and the number of accidents that may be averted by this rule. No
additional data was provided during the comment period.
While the FAA describes the benefits of the rule qualitatively, the
FAA expects that second-class medical certification provides additional
screening to reduce the risk of commercial balloon pilots operating
while medically impaired. In the section below, the FAA conducted a
breakeven analysis to show that the monetized benefits of the rule
equates costs if it averts 0.3 to 2.8 fatalities in the next ten years.
Costs
This final rule results in private sector costs to balloon pilots
for obtaining a second-class medical certificate, including the
opportunity cost of time and fee for the medical exam with an AME. Some
balloon pilots with certain health conditions that are otherwise
disqualifying may also incur the cost of seeking a special issuance
medical certificate or SODA. The FAA incurs costs for reviewing and
processing the applications (i.e., MedXPress forms) and reviewing NDR
information for a subset of submissions.
Cost to Industry
(1) Costs of Obtaining Second-Class Medical Certification
To obtain a second-class medical certificate, an applicant needs to
complete the MedXPress form and a medical exam with an AME. Because the
second-class medical certificate expires 12 months after the date of
the medical exam, the FAA assumes that pilots incur these costs on an
annual basis. The FAA estimates the opportunity cost of time for each
applicant would include 1.5 hours to complete the MedXPress form, 1
hour for the medical examination, and 1 hour of travel time to and from
the exam for a total of 3.5 hours.\22\ The FAA assumes an hourly wage
for a balloon pilot ranges from $15 per hour to $48 per hour, with a
mid-estimate of $31.50 per hour, to value time for the medical exam and
completing the MedXPress form. For valuing travel time, the FAA uses an
estimate of $13.60 per hour consistent with 2016 DOT guidance (in this
analysis, $14.44 was used for year
[[Page 71228]]
2021).\23\ Multiplying the value of time by the amount of time spent
yields an estimate of $51.94 to $134.44, with a mid-estimate of $93.19
per applicant in opportunity cost of time. FAA subject matter experts
estimate the cost per medical exam with an AME ranges from $100 to
$200, with an average of $150. Additional costs arise from vehicle
operating costs (VOC) of 16 cents per mile for an average of 50 miles
traveled by vehicle to and from a medical exam, which yields $8 for
each exam. Taking the sum of the value of time spent, medical exam fee,
and VOC, the FAA estimates that each applicant incurs costs of
approximately $160 to $342, with a mid-estimate of $251 to obtain a
second-class medical certificate each year.
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\22\ According to the ``FAA Aerospace Medical Certification
Services Airman Satisfaction Survey,'' (April 2017), over 60 percent
of applicants traveled between 0 and 25 miles one way for an exam
with an AME. (Retrieved from: https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201904-2120-007).
\23\ Department of Transportation. ``The Value of Travel Time
Savings: Departmental Guidance for Conducting Economic Evaluations
Revision 2 (2016 Update). Available at: https://www.transportation.gov/office-policy/transportation-policy/revised-departmental-guidance-valuation-travel-time-economic. This analysis
assumes that the value of travel time grows 1% a year. Year 2021:
14.44.
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Table 2 below shows the range of total costs to industry for
obtaining a second-class medical certificate. The FAA derives the
aggregated low, middle, and high costs by multiplying the estimated
number of active pilots (low, middle, high) as shown in Table 1 by the
corresponding low, middle, and high costs per applicant by cost
category.
Table 2--Costs to Industry by Category To Obtain Second-Class Medical Certification
--------------------------------------------------------------------------------------------------------------------------------------------------------
Opportunity cost of time for exam, Fee for medical exam with AME Vehicle operating costs
MedXPress form, and travel -----------------------------------------------------------------------------
Year ---------------------------------------
Low Middle High Low Middle High Low Middle High
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.................................. $48,899 $211,875 $604,081 $94,400 $341,550 $899,600 $7,552 $18,216 $35,984
2.................................. 51,940 217,412 612,240 100,000 349,950 910,800 8,000 18,664 36,432
3.................................. 54,996 222,965 620,414 105,600 358,350 922,000 8,448 19,112 36,880
4.................................. 58,080 228,559 628,650 111,200 366,750 933,200 8,896 19,560 37,328
5.................................. 61,180 234,169 636,903 116,800 375,150 944,400 9,344 20,008 37,776
6.................................. 64,297 239,795 645,173 122,400 383,550 955,600 9,792 20,456 38,224
7.................................. 67,430 245,439 653,460 128,000 391,950 966,800 10,240 20,904 38,672
8.................................. 70,581 251,100 661,764 133,600 400,350 978,000 10,688 21,352 39,120
9.................................. 73,748 256,777 670,084 139,200 408,750 989,200 11,136 21,800 39,568
10................................. 76,932 262,471 678,421 144,800 417,150 1,000,400 11,584 22,248 40,016
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The low, middle, and high estimates correspond to the low, middle, and high estimates of the number of active pilots and the range of costs per
applicant in each category of costs.
(2) Cost of Obtaining a Special Issuance
For applicants that do not initially meet the requirements of a
second-class medical certification, there may be an additional cost to
seek a special issuance medical certificate or SODA.\24\ The FAA
assumes that an applicant seeking special issuance would incur the same
costs and time of a second-class medical certification as estimated per
applicant above. Based on the historical rate of special issuances, the
FAA assumes that approximately 10 percent of affected balloon pilots
would seek special issuance, including SODAs. Therefore, the FAA takes
the sum of costs in each cost category for obtaining a second-class
medical certification and multiplies by 0.1 to obtain the total
industry cost for obtaining special issuances. Table 3 below shows the
range of special issuance costs in each year.
---------------------------------------------------------------------------
\24\ The cost to obtain a SODA is included in the estimated
costs to obtain a special issuance medical certificate. Based on the
FY2022 data from Aerospace Medical Certification Division, the FAA
estimates that on average approximately 0.02% (or no more than one
applicant a year) of medical certificate applicants will require a
SODA.
Table 3--Total Industry Cost for Special Issuances
----------------------------------------------------------------------------------------------------------------
Total private sector costs for special
issuance
Year -----------------------------------------------
Low Middle High
----------------------------------------------------------------------------------------------------------------
1............................................................... $15,085 $57,164 $153,967
2............................................................... 15,994 58,603 155,947
3............................................................... 16,904 60,043 157,929
4............................................................... 17,818 61,487 159,918
5............................................................... 18,732 62,933 161,908
6............................................................... 19,649 64,380 163,900
7............................................................... 20,567 65,829 165,893
8............................................................... 21,487 67,280 167,888
9............................................................... 22,408 68,733 169,885
10.............................................................. 23,332 70,187 171,884
----------------------------------------------------------------------------------------------------------------
Present Value at 7%............................................. 131,272 441,519 1,136,479
Annualized at 7%................................................ 18,690 62,862 161,809
Present Value at 3%............................................. 161,857 540,060 1,385,536
Annualized at 3%................................................ 18,975 63,311 162,427
----------------------------------------------------------------------------------------------------------------
[[Page 71229]]
Summary of Total Cost to Industry
The FAA estimates the present value of total cost to industry
associated with obtaining a second-class medical certification and
special issuances to be $1.4 million to $12.5 million, with a mid-
estimate of $4.9 million at a 7 percent discount rate and $1.8 million
to $15.2 million, with a mid-estimate of $5.9 million at a 3 percent
discount rate. The annualized value of total cost to industry are $0.2
million to $1.8 million with a mid-estimate of $0.7 million at a 7
percent discount rate and $0.2 million to $1.8 million with a mid-
estimate of $0.7 million at a 3 percent discount rate. In Table 4
below, the FAA shows these total costs to industry for obtaining a
second-class medical certification and special issuances in each year.
The low, middle, and high estimates correspond to the range of
estimates on the number of affected pilots and costs associated with
obtaining medical certification.
Table 4--Total Industry Costs
----------------------------------------------------------------------------------------------------------------
Total cost to industry
Year -----------------------------------------------
Low Middle High
----------------------------------------------------------------------------------------------------------------
1............................................................... $165,936 $628,805 $1,693,632
2............................................................... 175,934 644,629 1,715,419
3............................................................... 185,949 660,470 1,737,223
4............................................................... 195,993 676,355 1,759,096
5............................................................... 206,056 692,259 1,780,987
6............................................................... 216,138 708,182 1,802,897
7............................................................... 226,237 724,122 1,824,825
8............................................................... 236,356 740,082 1,846,772
9............................................................... 246,493 756,059 1,868,737
10.............................................................. 256,648 772,056 1,890,721
----------------------------------------------------------------------------------------------------------------
Present Value at 7%............................................. 1,443,990 4,856,705 12,501,274
Annualized at 7%................................................ 205,592 691,486 1,779,900
Present Value at 3%............................................. 1,780,422 5,940,655 15,240,897
Annualized at 3%................................................ 208,720 696,426 1,786,698
----------------------------------------------------------------------------------------------------------------
Costs to FAA To Implement Requirement for Second-Class Medical
Certification for Balloon Pilots
(1) FAA Cost of MedXPress Review and Processing
The FAA incurs costs associated with reviewing and processing
applications submitted through MedXPress. Based on internal FAA data on
total personnel costs and benefits attributable to labor hours spent on
review of airmen medical certification in FY 2019 through FY 2021, the
FAA estimates an average cost of $30 to review and process each
application. In Table 5 below, the Agency derives the FAA cost to
review applications in each year using the estimated range for the
number of submissions based on the forecasted number of active balloon
pilots in each year.
Table 5--FAA Costs To Review and Process Applications
----------------------------------------------------------------------------------------------------------------
FAA costs for review and processing
Year -----------------------------------------------
Low Middle High
----------------------------------------------------------------------------------------------------------------
1............................................................... $27,944 $67,402 $133,146
2............................................................... 29,601 69,060 134,804
3............................................................... 31,259 70,717 136,462
4............................................................... 32,917 72,375 138,119
5............................................................... 34,574 74,033 139,777
6............................................................... 36,232 75,690 141,435
7............................................................... 37,890 77,348 143,092
8............................................................... 39,547 79,006 144,750
9............................................................... 41,205 80,663 146,408
10.............................................................. 42,863 82,321 148,065
----------------------------------------------------------------------------------------------------------------
Present Value at 7%............................................. 242,207 519,347 981,108
Annualized at 7%................................................ 34,485 73,943 139,688
Present Value at 3%............................................. 298,552 635,141 1,195,954
Annualized at 3%................................................ 34,999 74,458 140,202
----------------------------------------------------------------------------------------------------------------
(2) FAA Cost of Special Issuance Review
A MedXPress application that requires a special issuance medical
certificate is deferred to the Aerospace Medical Certification Division
(AMCD) for further consideration. Based on FAA internal data on
personnel compensation and benefits attributable to labor hours spent
on reviewing and processing special issuance medical certificates in FY
2019 through FY 2021, the FAA estimates an average cost of
approximately $126 per special issuance review. The table below
displays the FAA cost for special issuance review assuming that 10
percent of the applicants do not initially qualify for second-class
medical certification.
[[Page 71230]]
Table 6--FAA Cost of Special Issuance Review
----------------------------------------------------------------------------------------------------------------
FAA costs for special issuance review
Year -----------------------------------------------
Low Middle High
----------------------------------------------------------------------------------------------------------------
1............................................................... $11,931 $28,779 $56,851
2............................................................... 12,639 29,487 57,559
3............................................................... 13,347 30,195 58,267
4............................................................... 14,055 30,903 58,974
5............................................................... 14,763 31,611 59,682
6............................................................... 15,470 32,318 60,390
7............................................................... 16,178 33,026 61,098
8............................................................... 16,886 33,734 61,806
9............................................................... 17,594 34,442 62,513
10.............................................................. 18,302 35,150 63,221
----------------------------------------------------------------------------------------------------------------
Present Value at 7%............................................. 103,418 221,751 418,915
Annualized at 7%................................................ 14,724 31,572 59,644
Present Value at 3%............................................. 127,476 271,193 510,650
Annualized at 3%................................................ 14,944 31,792 59,864
----------------------------------------------------------------------------------------------------------------
(3) Cost of FAA Review of the National Driver Register (NDR) Reports
Included within the medical certificate application is the
applicant's authorization for the FAA to receive NDR data, which
provides a report of applicable motor vehicle actions within the
preceding three years. Intentional failure to report required drug or
alcohol motor vehicle actions is grounds for suspension of a pilot
certificate. NDR checks help to identify persons who may have substance
abuse or dependence issues. Although the bulk of the process is
automated, the FAA estimates there is roughly a 3% return rate that
requires additional review and investigation. The FAA estimates that it
takes approximately 40 hours of additional review time by a special
agent for each applicant that is flagged through the NDR database.
Using a special agent hourly wage adjusted for fringe benefits of
$60.18, as shown in Table 7 below, the FAA estimates that each
submission that requires further investigation would cost $2,407. The
total costs to FAA associated with NDR review are estimated in Table 8
using the range of estimated submissions.
Table 7--Special Agent Wage With Fringe Benefits
----------------------------------------------------------------------------------------------------------------
Yearly Hourly Fringe benefits Total
----------------------------------------------------------------------------------------------------------------
Special Agent................................. $91,877 $44.17 $16.01 $60.18
Federal Fringe Benefit Factor \1\ \2\ \3\..... .............. .............. 36.25% ..............
----------------------------------------------------------------------------------------------------------------
\1\ https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2008/m08-13.pdf.
\2\ Percent of position's basic pay.
\3\ Dallas-Fort Worth, TX-OK locality plus fringe benefits, GS-12 Step 4. Retrieved from https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2021/DFW.pdf.
Table 8--FAA Costs for NDR Review
----------------------------------------------------------------------------------------------------------------
FAA costs for NDR review
Year -----------------------------------------------
Low Middle High
----------------------------------------------------------------------------------------------------------------
1............................................................... $68,172 $164,436 $324,828
2............................................................... 72,216 168,480 328,872
3............................................................... 76,260 172,524 332,916
4............................................................... 80,304 176,568 336,960
5............................................................... 84,348 180,612 341,004
6............................................................... 88,392 184,656 345,048
7............................................................... 92,436 188,700 349,092
8............................................................... 96,481 192,745 353,136
9............................................................... 100,525 196,789 357,180
10.............................................................. 104,569 200,833 361,224
----------------------------------------------------------------------------------------------------------------
Present Value at 7%............................................. 590,895 1,267,013 2,393,537
Annualized at 7%................................................ 84,130 180,394 340,786
Present Value at 3%............................................. 728,356 1,549,507 2,917,681
Annualized at 3%................................................ 85,386 181,650 342,041
----------------------------------------------------------------------------------------------------------------
Summary of Total Costs to FAA
The total costs to the FAA to implement the requirement for
commercial balloon pilots to hold a second-class medical certificate is
the sum of the costs for FAA review and processing of MedXPress
applications, review of special issuances, and review of NDR
information associated with certain applications. The FAA estimates the
present value of total costs to the Agency to be $0.9 million to $3.8
[[Page 71231]]
million, with a mid-estimate of $2.0 million at a 7 percent discount
rate and $1.2 million to $4.6 million, with a mid-estimate of $2.5
million at a 3 percent discount rate. The annualized value of total
cost to FAA is $0.1 million to $0.5 million with a mid-estimate of $0.3
million at a 7 percent discount rate and $0.1 million to $0.5 million
with a mid-estimate of $0.3 million at a 3 percent discount rate.
The FAA acknowledges the difficulty in estimating FAA burden and
cost after the effective date of this rule given uncertainties in the
number of pilot applicants and those pilots that would either receive a
second-class medical certification or be granted a special issuance
certification.
Table 9--Total Costs to FAA
----------------------------------------------------------------------------------------------------------------
Total cost to FAA
Year -----------------------------------------------
Low Middle High
----------------------------------------------------------------------------------------------------------------
1............................................................... $108,047 $260,617 $514,825
2............................................................... 114,456 267,027 521,235
3............................................................... 120,866 273,436 527,644
4............................................................... 127,276 279,846 534,054
5............................................................... 133,685 286,256 540,463
6............................................................... 140,095 292,665 546,873
7............................................................... 146,504 299,075 553,282
8............................................................... 152,914 305,484 559,692
9............................................................... 159,323 311,894 566,102
10.............................................................. 165,733 318,303 572,511
----------------------------------------------------------------------------------------------------------------
Present Value at 7%............................................. 936,521 2,008,111 3,793,560
Annualized at 7%................................................ 133,339 285,910 540,118
Present Value at 3%............................................. 1,154,385 2,455,842 4,624,285
Annualized at 3%................................................ 135,329 287,900 542,107
----------------------------------------------------------------------------------------------------------------
Total Costs of the Rule
The total costs are shown in the table below, which includes both
costs to industry and to the FAA. The total costs over the ten years
include the costs for pilots to obtain their second-class medical
certificate, special issuances and costs to the Agency for review of
applications, special issuances, and NDR information. The FAA estimates
the present value of total costs over ten years is $2.4 million to
$16.3 million with a mid-estimate of $6.9 million at a 7 percent
discount rate and $2.9 million to $19.9 million with a mid-estimate of
$8.4 million at a 3 percent discount rate. The FAA estimates the
annualized costs over ten years is $0.3 million to $2.3 million with a
mid-estimate of $1.0 million at a 7 percent discount rate and $0.3
million to $2.3 million with a mid-estimate of $1.0 million at a 3
percent discount rate.
As stated previously, in some cases, where the airman's medical
condition does not meet the part 67 standard, the airman may still be
issued a medical certificate by authorization for special issuance when
the Federal Air Surgeon determines the risk associated with the medical
condition(s) to be sufficiently mitigated. Based on the rate of special
issuance for general aviation pilots, the FAA assumes that 10% of the
commercial balloon pilot applicants would require a special issuance.
For purposes of this analysis, the FAA assumes that most applicants
would ultimately either receive a second-class medical certificate or
be granted a special issuance and therefore does not quantify costs
associated with not meeting the requirements.
However, the FAA expects some applicants who would have otherwise
been able to operate as commercial balloon pilots may not meet the
requirements of a second-class medical certification nor the
requirements for a special issuance. Furthermore, the opportunity cost
(including the time and fees) of seeking a second-class medical
certification for some pilots may outweigh their private gains from
operating commercially, resulting in some pilots opting not to seek
medical certification. The FAA does not have sufficient information to
predict how the supply of commercial balloon pilots would change as a
result of this rule.
While the FAA does not expect a significant decrease in the
availability of balloon pilots, changes in supply of balloon pilots
could affect prices as well. This analysis does not quantify any
potential changes in consumer and producer surplus from changes in
supply. If the rule effectively screens out certain individuals for
disqualifying medical conditions as intended, any potential adverse
effects on individual applicants should be offset by the safety gains
to the public.
Table 10--Total Costs of the Rule
----------------------------------------------------------------------------------------------------------------
Total cost of the rule
Year -----------------------------------------------
Low Middle High
----------------------------------------------------------------------------------------------------------------
1............................................................... $273,983 $889,422 $2,208,457
2............................................................... 290,390 911,656 2,236,654
3............................................................... 306,815 933,907 2,264,867
4............................................................... 323,269 956,201 2,293,150
5............................................................... 339,741 978,515 2,321,451
6............................................................... 356,232 1,000,847 2,349,770
7............................................................... 372,742 1,023,197 2,378,108
8............................................................... 389,270 1,045,566 2,406,464
9............................................................... 405,816 1,067,953 2,434,839
[[Page 71232]]
10.............................................................. 422,381 1,090,359 2,463,232
----------------------------------------------------------------------------------------------------------------
Present Value at 7%............................................. 2,380,511 6,864,816 16,294,834
Annualized at 7%................................................ 338,931 977,395 2,320,018
Present Value at 3%............................................. 2,934,807 8,396,497 19,865,182
Annualized at 3%................................................ 344,049 984,326 2,328,805
----------------------------------------------------------------------------------------------------------------
Breakeven Analysis
Given the uncertainties and limitations in the available data, the
FAA conducted a breakeven analysis to determine the number of averted
fatalities necessary to generate benefits equal to costs. The FAA
divided the present value of total costs of the rule by the present
value of a statistical life to estimate the number of fatalities needed
to break even with the costs of the rule over a ten-year time horizon.
Using a value of statistical life of $11.6 million and the range of
present value of costs presented in Table 10 above, the monetized
benefits of this rule will break even with costs if the new medical
certification requirement averts between 0.4 to 2.8 fatalities under a
7 percent discount rate and between 0.3 to 2.3 fatalities under a 3
percent discount rate.\25\
---------------------------------------------------------------------------
\25\ Departmental Guidance on Valuation of a Statistical Life in
Economic Analysis https://www.transportation.gov/office-policy/transportation-policy/revised-departmental-guidance-on-valuation-of-a-statistical-life-in-economic-analysis.
---------------------------------------------------------------------------
Regulatory Alternatives
As discussed in the NPRM, the FAA considered one alternative to the
proposed rule: Letter of Authorization (LOA) and Drug and Alcohol
Testing.
With this alternative, the FAA would have instituted both a medical
certificate requirement as well as a requirement for obtaining an LOA
from the FAA and mandatory drug and alcohol testing. This alternative
would have expanded the definition of an operator under Sec. 91.147 to
include balloons, which would have required the commercial balloon
operators to obtain an LOA from the FAA in accordance with Sec. 91.147
prior to conducting air tour operations, and implement a drug and
alcohol testing program in accordance with 14 CFR part 120. However, as
discussed elsewhere in this final rule, this alternative goes beyond
the statutory mandate. Therefore, the FAA did not adopt this
alternative.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) of 1980, Public Law 96-354, 94
Stat. 1164 (5 U.S.C. 601-612), as amended by the Small Business
Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat.
857, Mar. 29, 1996) and the Small Business Jobs Act of 2010 (Pub. L.
111-240, 124 Stat. 2504 Sept. 27, 2010), requires Federal agencies to
consider the effects of the regulatory action on small business and
other small entities and to minimize any significant economic impact.
The term ``small entities'' comprises small businesses and not-for-
profit organizations that are independently owned and operated and are
not dominant in their fields, and governmental jurisdictions with
populations of less than 50,000.
The FAA published an Initial Regulatory Flexibility Analysis (IRFA)
in the proposed rule to aid the public in commenting on the potential
impacts to small entities. The FAA considered the public comments in
developing the final rule and this Final Regulatory Flexibility
Analysis (FRFA). A FRFA must contain the following:
(1) A statement of the need for, and objectives of, the rule;
(2) A statement of the significant issues raised by the public
comments in response to the IRFA, a statement of the assessment of the
agency of such issues, and a statement of any changes made in the
proposed rule as a result of such comments;
(3) The response of the agency to any comments filed by the Chief
Counsel for Advocacy of the Small Business Administration (SBA) in
response to the proposed rule, and a detailed statement of any change
made to the proposed rule in the final rule as a result of the
comments;
(4) A description of and an estimate of the number of small
entities to which the rule will apply or an explanation of why no such
estimate is available;
(5) A description of the projected reporting, recordkeeping, and
other compliance requirements of the rule, including an estimate of the
classes of small entities which will be subject to the requirement and
the type of professional skills necessary for preparation of the report
or record; and
(6) A description of the steps the agency has taken to minimize the
significant economic impact on small entities consistent with the
stated objectives of applicable statutes, including a statement of the
factual, policy, and legal reasons for selecting the alternative
adopted in the final rule and why each of the other significant
alternatives to the rule considered by the agency which affect the
impact on small entities was rejected.
Statement of the Need for and Objectives of the Rule
This rulemaking addresses the need for additional oversight of
airmen conducting balloon operations for compensation or hire by
implementing the statutory mandate under the Commercial Balloon Pilot
Safety Act of 2018 and NTSB Safety Recommendation A-17-034 to extend
second-class medical certification requirements to operators of
balloons.
The objective of the rule is to enhance safety for passengers of
commercial balloon operations by requiring pilots to obtain and hold
second-class medical certificates, in compliance with Section 318, to
prevent potential accidents in commercial balloon operations.
Significant Issues Raised in Public Comments
The FAA received 192 comments during the public comment period. One
significant issue commenters raised was the concern that the proposed
rule would impose significant burdens on balloon pilots and could put
some of them out of business, causing the supply of balloon pilots to
shrink. The FAA assessed this concern and does not believe that the
costs of the rule would cause such an undue burden. The cost estimate
per pilot to obtain a second-class medical certificate is between $160
and $685 annually, depending on whether a special issuance would be
necessary, which is the equivalent of 0.06% to 0.37% of average annual
[[Page 71233]]
revenues for small entities. The FAA considers this expense to be non-
significant to cause such a decline in the number of balloon pilots. A
more detailed analysis may be found under the Description and an
Estimated Number of Small Entities Impacted section.
In addition, several commenters noted that larger balloon
operations require their pilots to carry second-class medical
certificates as part of insurance requirements. These balloon pilots do
not have to incur additional costs as a result of the final rule. The
FAA estimates about 8.8% of balloon pilots fall into this category.
However, the vast majority of balloon pilots are not currently required
to hold second-class medical certificates either by the FAA or
insurance carriers. There was no change made to the final rule as a
result of public comments.
Response to SBA Comments
The FAA received no comments from the Chief Counsel for Advocacy of
the Small Business Administration.
Description and an Estimated Number of Small Entities Impacted
The final rule affects commercial balloon pilots and establishments
involved in commercial balloon operations. The FAA does not maintain a
database of commercial balloon operators actively operating in the
United States. Using commercial sources, the FAA estimates that number
to be about 356 \26\ companies. Approximately 4,870 commercial pilots
hold balloon ratings, and approximately 4,940 balloons are registered
with the FAA. The commercial balloon industry estimates that 100,000 to
250,000 passenger rides are conducted annually, as well as aerial
advertising and other commercial activities.
---------------------------------------------------------------------------
\26\ https://www.blastvalve.com/Balloon_Rides/USA/index.shtml.
---------------------------------------------------------------------------
FAA used the definition of small entities in the RFA for this
analysis. The RFA defines small entities as small businesses, small
governmental jurisdictions, or small organizations. In 5 U.S.C. Sec.
601(3), the RFA defines ``small business'' to have the same meaning as
``small business concern'' under section 3 of the Small Business Act.
The Small Business Act authorizes the Small Business Administration
(SBA) to define ``small business'' by issuing regulations. SBA (2019)
has established size standards for various types of economic
activities, or industries, under the North American Industry
Classification System (NAICS).\27\ These size standards generally
define small businesses based on the number of employees or annual
receipts. Note that the SBA definition of a small business applies to
the parent company and all affiliates as a single entity.
---------------------------------------------------------------------------
\27\ Small Business Administration (SBA). 2019. Table of Size
Standards. Effective August 12, 2019. https://www.sba.gov/document/support--table-size-standards.
---------------------------------------------------------------------------
To identify small entities, the FAA first identified the primary
NAICS of the airline or parent company, and then used data from
different sources (e.g., company annual reports, Bureau of
Transportation Statistics) to determine whether the parent company
meets the applicable size standard. Businesses affected by this rule
are classified using the 2017 North American Industry Classification
System \28\ under NAICS code 487990 ``Scenic and Sightseeing
Transportation, Other.'' This industry comprises establishments
primarily engaged in providing scenic and sightseeing transportation
(except on land and water). The U.S. Small Business Administration
(SBA) defines entities in this industry as ``small'' using an average
annual revenue threshold of $8 million.\29\ With limited information
and data on sales revenues for each of the affected commercial balloon
operators, the FAA has uncertainty as to how many entities would meet
the SBA's small-entity criteria.\30\ Furthermore, the FAA has
uncertainty as to how the burden associated with the final rule would
be distributed across commercial balloon companies versus individual
balloon pilots employed by an operator. The FAA requested comment and
data on the average annual sales revenues for the affected small
businesses and to what extent the costs of obtaining a second-class
medical certification would be considered an ``out-of-pocket'' cost
incurred by commercial balloon pilots rather than a cost to the
commercial balloon operator. The only information received was that the
ballooning insurance providers have required commercial pilots flying
balloons larger than 120,000 cubic feet to hold a second-class medical
certificate. Data indicated 427 balloon pilots have second-class
medical certificates, and the FAA has made this adjustment to recompute
the costs of this final rule. As previously described, the FAA
estimates the cost per pilot to obtain a second-class medical
certificate would be between $160 and $685 annually, depending on
whether a special issuance would be necessary.
---------------------------------------------------------------------------
\28\ https://www.census.gov/naics/?input=487990&year=2017&details=487990.
\29\ https://www.sba.gov/sites/default/files/2019-08/SBA%20Table%20of%20Size%20Standards_Effective%20Aug%2019%2C%202019_Rev.pdf.
\30\ Rainbow Ryders is one of the larger commercial balloon
companies and are under the Small Business Administration small-
entity criteria. Therefore, the FAA estimates that all of the
Commercial balloon companies are a small entity. It's Been a Year of
Growth for Rainbow Ryders, https://www.abqjournal.com/1095655/its-been-a-growth-year-for-rainbow-ryders.html, September 9, 2019.
---------------------------------------------------------------------------
For purposes of this final regulatory flexibility analysis, the FAA
assumes that the private sector costs of this rule (i.e., the cost to
obtain a second-class medical certification or special issuance) fall
entirely on commercial balloon operators. In the absence of data on
annual receipts specific to the commercial balloon industry, the FAA
relies on the most recent data available on average revenues for all
businesses, including commercial balloon operators, classified under
NAICS 487990 ``Scenic and Sightseeing Transportation, Other'' from the
2017 Census Bureau's Statistics of U.S. Businesses (SUSB) \31\ to
inform the analysis. Note that the total number of firms identified for
this industry is less than the FAA estimated number of commercial
balloon operators. In this analysis, the FAA uses the SUSB data to
estimate the proportion of balloon companies for each size category by
annual receipts.
---------------------------------------------------------------------------
\31\ Available at https://www.census.gov/data/tables/2017/econ/subs/2017-annual.html, retrieved on August 15, 2021.
---------------------------------------------------------------------------
The table below summarizes the total number of firms, employment,
and estimated annual receipts by annual receipt category for the entire
industry classified under NAICS 487990 ``Scenic and Sightseeing
Transportation, Other'' for the year 2017. Note that blanks in the
table below reflect data that the Census Bureau withheld to avoid
disclosing data for individual companies but are included in the
higher-level totals. After adjusting the 2017 dollar values to constant
2021 dollars using the GDP deflator,\32\ the FAA estimates that
approximately 93 percent of companies (or about 331 balloon operators
extrapolating from this percentage) may be considered small entities
under the SBA definition.
---------------------------------------------------------------------------
\32\ Available at: https://www.whitehouse.gov/omb/historical-tables/.
---------------------------------------------------------------------------
To compare the compliance costs of the rule to the average revenues
of small entities, for each receipt size category the FAA multiplies
the proportion of total employment by the annualized private sector
costs of the rule and divides by the estimated annual receipts
[[Page 71234]]
in 2021 dollars.\33\ Assuming that costs are proportional to employment
size, which may be reasonable given that costs are driven by the number
of pilots requiring a second-class medical certification, the FAA
estimates that the costs of the final rule constitutes 0.06% to 0.37%
of average annual revenues for small entities. Given the currency and
level of aggregation of the data available, the FAA requested comment
on accuracy of these estimates and any other information or data that
would be relevant for estimating the effects of the rule on small
entities but did not receive any during the comment period.
---------------------------------------------------------------------------
\33\ For this calculation, the FAA uses the mid-estimate of
$691,486 for the total private sector costs annualized at a 7
percent discount rate.
Table 11--Number of Firms, Establishments, Employment, and Estimated Receipts by Enterprise Receipt Sizes for the United States, NAICS 487990: 2017
[Census statistics of U.S. businesses]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cost for all
Number of Percentage of Percentage of Estimated firms in size Cost as a
Enterprise receipt size \a\ firms \b\ firms Employment total receipts category percentage of
employment ($1,000) ($1,000) receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
<$100,000............................... 53 17 48 1 2,255 9 0.37
$100,000-499,999........................ 119 39 192 5 29,644 37 0.11
$500,000-999,999........................ 47 15 237 7 32,765 45 0.13
$1,000,000-2,499,999.................... 43 14 365 10 63,134 70 0.10
$2,500,000-4,999,999.................... 18 6 323 9 65,788 62 0.09
$5,000,000-7,499,999.................... 6 2 106 3 29,465 20 0.06
$7,500,000-9,999,999.................... 5 2 213 6 41,585 41 0.09
$10,000,000-14,999,999.................. 4 1.3 196 5 50,270 38 0.07
$20,000,000-24,999,999.................. .............. .............. .............. .............. .............. .............. ..............
$25,000,000-29,999,999.................. 3 1.0 93 3 19,490 18 0.08
$30,000,000-34,999,999.................. .............. .............. .............. .............. .............. .............. ..............
$35,000,000-39,999,999.................. .............. .............. .............. .............. .............. .............. ..............
$50,000,000-74,999,999.................. .............. .............. .............. .............. .............. .............. ..............
$100,000,000+........................... 4 1 1,044 29 251,871 200 0.07
---------------------------------------------------------------------------------------------------------------
Total............................... 309 100 3,611 100 762,426 691 0.08
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Using the Gross Domestic Product (GDP) deflator, the FAA finds that $7.49 million in 2017 dollars would be approximately $ 8.16 million in 2021
dollars. Therefore, the FAA assumes firms with receipts of less than $7.49 million in 2017 dollars would be considered small.
\b\ The FAA notes that the number of firms in NAICS 487990 is lower than FAA's estimate of the number of balloon operators. For purposes of this
analysis, the SUSB data is used to estimate the percentage of small entities and the distribution of costs relative to revenues.
Description of the Recordkeeping and Other Compliance Requirements
The FAA requires that airmen hold a valid second-class medical
certificate when exercising the privileges of a commercial pilot
certificate in a balloon for compensation or hire. A medical
certificate is not required for commercial pilots conducting flight
training in a balloon. As determined by a physical examination and
review of medical history, airmen must meet the applicable medical
standards of part 67 in order to receive an unrestricted medical
certificate. In cases where the airman's medical condition does not
meet the part 67 standard, the airman may still be issued a medical
certificate by authorization for special issuance or SODA when the
Federal Air Surgeon had determined that the risk associated with the
medical condition(s) is sufficiently mitigated.
A person obtains a medical certificate by completing an online
application (FAA form 8500-8, Application for Medical Certificate)
using the FAA's medical certificate application tool, MedXPress,\34\
and undergoing a physical examination with an FAA-designated AME. An
AME may defer an applicant to the FAA for further review (which may
include further examination and testing by a specialist physician) when
there is information indicating the existence or potential of an
adverse medical finding that may warrant further FAA medical evaluation
and oversight. Second-class medical certificates held for any
operations requiring a commercial pilot certificate (including the
second-class medical certificates that is required for balloon
operations under this final rule) expire at the end of the last day of
the 12th month after the month of the date of examination shown on the
medical certificate.
---------------------------------------------------------------------------
\34\ https://medxpress.faa.gov/.
---------------------------------------------------------------------------
Alternatives Considered To Minimize Any Significant Economic Impact on
Small Entities
The FAA has not identified any significant alternative that would
minimize any significant economic impact on small entities which do not
conflict with the statutory mandate. During the comment period, the FAA
solicited comment on potential alternative approaches that could
minimize the burden on small entities while still accomplishing the
objectives of the proposal and did not receive any suggestions.
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 final rule and determined that it
will not create unnecessary obstacles to the foreign commerce of the
United States.
The FAA has assessed the potential effect of this rule and
determined that it ensures the safety of the American public and does
not exclude imports that meet this objective. As a result, the
[[Page 71235]]
FAA does not consider this rule as creating an unnecessary obstacle to
foreign commerce.
D. Unfunded Mandates Assessment
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
governs the issuance of Federal regulations that require unfunded
mandates. An unfunded mandate is a regulation that requires a State,
local, or tribal government or the private sector to incur direct costs
without the Federal government having first provided the funds to pay
those costs. The FAA determined that the final rule will not result in
the expenditure of $165,000,000 or more by State, local, or tribal
governments, in the aggregate, or the private sector, in any one year.
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.
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 Office of Management
and Budget (OMB) control number.
This final rule contains the following amendments to the existing
information collection requirements previously approved under OMB
Control No. 2120-0034. In the analysis below, the FAA describes the
incremental changes in the number of respondents, annual burden, and
monetized costs of the existing information collection requirement
previously approved under OMB Control No. 2120-0034. As required by the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), the FAA has
submitted the information collection requirements to OMB for its
review.
Requirements To Hold a Second-Class Medical Certificate
The final rule requires airmen to hold a valid second-class medical
certificate when exercising the privileges of a commercial pilot
certificate in a balloon for compensation or hire. To obtain a medical
certificate, an airman has to complete an online application (FAA form
8500-8, Application for Medical Certificate) using the FAA's medical
certificate application tool, MedXPress and undergo a physical
examination with an FAA-designated Aviation Medical Examiner (AME).
In Table 12 below, the FAA shows the incremental burden of this
rule to the approved information collection under OMB Control No. 2120-
0034. Additional details on assumptions and calculations used in this
section are presented elsewhere in the Regulatory Evaluation section of
this document.
Estimates of the Hour Burden of the Collection of Information
The mid estimate of the number of applicants in the first year is
2,277.
Table 12--Burden Hours Associated With MedXPress Form 8500-8
------------------------------------------------------------------------
Number of Hours per
Form No. applicants applicant Total hours
------------------------------------------------------------------------
8500-8 2,277 1.5 3,416
------------------------------------------------------------------------
Estimate of the Total Annual Cost Burden to Respondents or Record
Keepers Resulting From the Collection of Information
Once the information on FAA Form 8500-8 is collected, respondents
must receive a medical examination in order to be certificated to
exercise commercial balloon pilot privileges. The average fee for a
basic medical examination is estimated at $150. The total cost for
medical exams in the first year is as follows:
$150 x 2,277 submissions of Form 8500-8 = $ 341,550
Estimates of Annualized Costs to the Federal Government
The estimated annualized cost to the Federal Government to
implement the final rule is between $133,339 and $540,118, with a mid-
estimate of $285,910 at a 7 percent discount rate. The FAA would incur
costs associated with reviewing and processing applications submitted
through MedXPress. It costs about $30 per medical certification review
using the primary estimate for the number of applications in the first
year, the FAA estimates a total cost of $67,399 (= $29.60 per
application x 2,277) in the first year.
Currently, a MedXPress application that requires a special issuance
medical certificate is deferred to the AMCD of Oklahoma City for
further consideration. The FAA assumes that 10 percent of the
applicants do not initially qualify for second-class medical
certification and, therefore, would require special issuance. The
average cost to FAA for each medical certificate special issuance
review is approximately $126.
The total annualized costs for the FAA to review, including NDR and
process MedXPress applications from commercial balloon applicants and
costs for the FAA to conduct Special Issuance Review for commercial
balloon applicants is between $98,855 and $400,430, with a mid-estimate
of $211,967 at a 7 percent discount rate over ten years.
F. International Compatibility
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
reviewed the corresponding ICAO Standards and Recommended Practices and
has determined that this rule will require a minor modification to the
existing differences filed in regard to medical certification for
commercial balloon pilots. Currently, the U.S. has filed a difference
stating that balloon pilots are not required to hold a medical
certificate but are prohibited from operating during periods of medical
deficiency. This statement will be updated to reflect the medical
certificate requirement described in this rule.
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 5-6.6f for regulations and involves
no extraordinary circumstances.
[[Page 71236]]
VI. Executive Order Determination
A. Executive Order 13132, Federalism
The FAA has analyzed this final rule under the principles and
criteria of Executive Order 13132, Federalism. The agency has
determined that this action does 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 final rule under Executive Order 13211,
Actions Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use. The FAA has determined that this final rule is
not a ``significant energy action'' under the executive order and it
will not be 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, 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 reduces
differences between U.S. aviation standards and those of other civil
aviation authorities by bringing U.S. regulatory requirements partially
into compliance with International Civil Aviation Organization (ICAO)
standards for medical certification.\35\
---------------------------------------------------------------------------
\35\ The 12th edition of the Annex 1 to the Convention on
International Civil Aviation, Personnel Licensing, (July 2018),
specifies that a person exercising the privileges of a Free Balloon
Pilot License must hold a Class 2 medical. See 2.10.1.5.
---------------------------------------------------------------------------
VII. Privacy
The information collected from FAA Form 8500-8 becomes part of the
Privacy Act System of Records DOT/FAA 847, ``Aviation Records on
Individuals,'' [DOT/FAA 847] and is provided the protection outlined in
the description of the system as published in the Federal Register.
VIII. Additional Information
A. Electronic Access and Filing
A copy of the NPRM, all comments received, this final rule, and all
background material may be viewed online at https://www.regulations.gov
using the docket number listed above. Electronic retrieval help and
guidelines are available on the website. It is available 24 hours each
day, 365 days each year. An electronic copy of this document may also
be downloaded from the Office of the Federal Register's website at
https://www.federalregister.gov and the Government Publishing Office's
website at https://www.govinfo.gov. A copy may also be found on the
FAA's Regulations and Policies website at https://www.faa.gov/regulations_policies.
Copies may also be obtained by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW, Washington, DC 20591, or by calling (202) 267-9677.
Commenters must identify the docket or amendment number of this
rulemaking.
All documents the FAA considered in developing this final rule,
including economic analyses and technical reports, may be accessed in
the electronic docket for this rulemaking.
B. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act (SBREFA) of
1996 requires the 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 https://www.faa.gov/regulations_policies/rulemaking/sbre_act/.
List of Subjects
14 CFR Part 61
Aircraft, Airmen, Alcohol abuse, Aviation safety, Drug abuse,
Flight instruction, Medical certification, Recreation and recreation
areas, Reporting and recordkeeping requirements, Security measures,
Teachers.
14 CFR Part 68
Aircraft, Airmen, Health, 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 61--CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND
INSTRUCTORS
0
1. The authority citation for part 61 is revised to read as follows:
Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701-44703, 44707,
44709-44711, 44729, 44903, 45102-45103, 45301-45302.
0
2. Amend Sec. 61.3 by revising paragraphs (c)(2)(xiii) and
(c)(2)(xiv), and adding paragraph (c)(2)(xv) to read as follows:
Sec. 61.3 Requirement for certificates, ratings, and authorizations.
* * * * *
(c) * * *
(2) * * *
(xiii) Is exercising the privileges of a student, recreational or
private pilot certificate for operations conducted under the conditions
and limitations set forth in Sec. 61.113(i) and holds a U.S. driver's
license;
(xiv) Is exercising the privileges of a flight instructor
certificate and acting as pilot in command or a required flightcrew
member for operations conducted under the conditions and limitations
set forth in Sec. 61.113(i) and holds a U.S. driver's license; or
(xv) Is exercising the privileges of a student pilot certificate or
higher while acting as pilot in command on a special medical flight
test authorized under part 67 of this chapter.
* * * * *
0
3. Effective May 22, 2023, amend Sec. 61.3 by revising paragraph
(c)(2)(vi) to read as follows:
Sec. 61.3 Requirement for certificates, ratings, and authorizations.
* * * * *
(c) * * *
(2) * * *
(vi) Is holding a pilot certificate with a balloon class rating and
that person--
(A) Is exercising the privileges of a private pilot certificate in
a balloon; or
(B) Is providing flight training in a balloon in accordance with
Sec. 61.133(a)(2)(ii);
* * * * *
0
4. Amend Sec. 61.23 by:
0
a. Revising paragraphs (b)(8) and (b)(9)(ii);
0
b. Adding paragraph (b)(10); and
0
c. Revising paragraphs (c)(3)(i)(C), (c)(3)(i)(D), and (c)(3)(i)(E).
The revisions and additions read as follows:
[[Page 71237]]
Sec. 61.23 Medical certificates: Requirement and duration.
* * * * *
(b) * * *
(8) When taking a practical test or a proficiency check for a
certificate, rating, authorization or operating privilege conducted in
a glider, balloon, flight simulator, or flight training device;
(9) * * *
(ii) The flight conducted is a domestic flight operation within
U.S. airspace; or
(10) When exercising the privileges of a student pilot certificate
or higher while acting as pilot in command on a special medical flight
test authorized under part 67 of this chapter.
(c) * * *
(3) * * *
(i) * * *
(C) Complete the medical education course set forth in Sec. 68.3
of this chapter during the 24 calendar months before acting as pilot in
command or serving as a required flightcrew member in an operation
conducted under Sec. 61.113(i) and retain a certification of course
completion in accordance with Sec. 68.3(b)(1) of this chapter;
(D) Receive a comprehensive medical examination from a State-
licensed physician during the 48 months before acting as pilot in
command or serving as a required flightcrew member of an operation
conducted under Sec. 61.113(i) and that medical examination is
conducted in accordance with the requirements in part 68 of this
chapter; and
(E) If the individual has been diagnosed with any medical condition
that may impact the ability of the individual to fly, be under the care
and treatment of a State-licensed physician when acting as pilot in
command or serving as a required flightcrew member of an operation
conducted under Sec. 61.113(i).
* * * * *
0
5. Effective May 22, 2023, amend Sec. 61.23 by:
0
a. Revising paragraphs (a)(2)(i) and (a)(2)(ii);
0
b. Adding paragraph (a)(2)(iii);
0
c. Revising paragraph (b)(3);
0
d. Redesignating paragraphs (b)(4) through (b)(10) as paragraphs (b)(6)
through (b)(12); and
0
e. Adding new paragraphs (b)(4) and (b)(5);
0
f. Revising paragraphs (d)(1)(iii) and (d)(2)(i).
The revisions and additions read as follows:
Sec. 61.23 Medical certificates: Requirement and duration.
(a) * * *
(2) * * *
(i) Second-in-command privileges of an airline transport pilot
certificate in part 121 of this chapter (other than operations
specified in paragraph (a)(1)(ii) of this section);
(ii) Privileges of a commercial pilot certificate in an aircraft
other than a balloon or glider; or
(iii) Except as provided in paragraph (b)(5) of this section,
privileges of a commercial pilot certificate with a balloon class
rating for compensation or hire; or
(b) * * *
(3) When exercising the privileges of a pilot certificate with a
glider category rating in a glider;
(4) When exercising the privileges of a private pilot certificate
with a balloon class rating in a balloon;
(5) When exercising the privileges of a commercial pilot
certificate with a balloon class rating in a balloon if the person is
providing flight training in accordance with Sec. 61.133(a)(2)(ii);
* * * * *
(d) * * *
----------------------------------------------------------------------------------------------------------------
Then your medical
And on the date of certificate expires,
If you hold examination for your And you are conducting an for that operation, at
most recent medical operation requiring the end of the last
certificate you were day of the
----------------------------------------------------------------------------------------------------------------
(1) * * *
----------------------------------------------------------------------------------------------------------------
(iii) Any age......... a commercial pilot 12th month after the
certificate (other than a month of the date of
commercial pilot examination shown on
certificate with a balloon the medical
rating when conducting certificate.
flight training), a flight
engineer certificate, or
an air traffic control
tower operator certificate.
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
(2) * * *
----------------------------------------------------------------------------------------------------------------
(i) Any age........... an airline transport pilot 12th month after the
certificate for second-in- month of the date of
command privileges (other examination shown on
than the operations the medical
specified in paragraph certificate.
(d)(1) of this section), a
commercial pilot
certificate (other than a
commercial pilot
certificate with a balloon
rating when conducting
flight training), a flight
engineer certificate, or
an air traffic control
tower operator certificate.
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
0
6. Amend Sec. 61.113 by revising the introductory text of paragraph
(i) to read as follows:
Sec. 61.113 Private pilot privileges and limitations: Pilot in
command.
* * * * *
(i) A private pilot may act as pilot in command or serve as a
required flightcrew member of an aircraft without holding a medical
certificate issued under part 67 of this chapter provided the pilot
holds a valid U.S. driver's license, meets the requirements of Sec.
61.23(c)(3), and complies with this section and all of the following
conditions and limitations:
* * * * *
[[Page 71238]]
PART 68--REQUIREMENTS FOR OPERATING CERTAIN SMALL AIRCRAFT WITHOUT
A MEDICAL CERTIFICATE
0
7. The authority citation for part 68 continues to read as follows:
Authority: 49 U.S.C. 106(f), 44701-44703.
0
8. Amend Sec. 68.3 by revising the introductory text of paragraph (a)
and the introductory text of paragraph (b) to read as follows:
Sec. 68.3 Medical education course requirements.
(a) The medical education course required to act as pilot in
command or serve as a required flightcrew member in an operation under
Sec. 61.113(i) of this chapter must--
* * * * *
(b) Upon successful completion of the medical education course, the
following items must be electronically provided to the individual
seeking to act as pilot in command or serve as a required flightcrew
member under the conditions and limitations of Sec. 61.113(i) of this
chapter and transmitted to the FAA--
* * * * *
0
9. Amend Sec. 68.9 by revising the introductory text of paragraph (a)
to read as follows:
Sec. 68.9 Special Issuance process.
(a) General. An individual who has met the qualifications to
operate an aircraft under Sec. 61.113(i) of this chapter and is
seeking to act as a pilot in command or serve as a required flightcrew
member under that section must have completed the process for obtaining
an Authorization for Special Issuance of a Medical Certificate for each
of the following:
* * * * *
Issued in Washington, DC, under authority provided by 49 U.S.C.
106(f), 44701, 44702, and 44703 on or about November 16, 2022.
Billy Nolen,
Acting Administrator.
[FR Doc. 2022-25288 Filed 11-21-22; 8:45 am]
BILLING CODE 4910-13-P
