Special Federal Aviation Regulation No. 36, Development of Major Repair Data

SUMMARY: This final rule amends and extends Special Federal Aviation

Regulation (SFAR) No. 36, which provides that authorized repair station

and aircraft operating certificate holders may approve aircraft

products or articles for return to service after accomplishing major

repairs using self-developed repair data that have not been approved by

the Federal Aviation Administration (FAA). Amendments include

clarification of the scope of the SFAR authorization. Extension of the

regulation continues to provide, for those that qualify, an alternative

from the requirement to obtain FAA approval of major repair data on a

case-by-case basis, and allows additional time for the FAA to

incorporate the SFAR provisions into the regulations.

DATES: Effective January 23, 1994 and terminates January 23, 1999.

FOR FURTHER INFORMATION CONTACT: Todd Thompson, Continued Airworthiness

Staff, Aircraft Engineering Division, AIR-107, Federal Aviation

Administration, 800 Independence Ave., SW., Washington, DC 20591,

telephone: (202) 267-7218.

Supplementary Information:

Background

Notice No. 93-15, Special Federal Aviation Regulation No. 36,

Development of Major Repair Data, was published in the Federal Register

on Thursday, October 21, 1993; the comment period closed on November

22, 1993. Ten comments were received and are addressed below in the

section entitled Discussion of Comments.

In the NPRM, the FAA proposed amending and extending the

termination date of Special Federal Aviation Regulation (SFAR) No. 36,

which allows authorized certificate holders (domestic repair stations,

air carriers, air taxi operators of large aircraft, and commercial

operators of large aircraft) to approve aircraft products and articles

for return to service after accomplishing major repairs using data

developed by the holder that have not been approved by the FAA.

Currently, more than 40 air carrier and domestic repair station

certificate holders currently have SFAR 36 authorizations that will

terminate on January 23, 1994.

Since the SFAR was initially adopted in 1978, some of the

regulatory language has received differing field interpretation. As a

result, some repaired products have been returned to service by SFAR 36

authorization holders that did not have return to service authority.

These interpretations are the result of changes in the repair industry

since the initial adoption of the rule. The original SFAR 36 did not

foresee that some repair stations would be authorized only to perform

maintenance on parts or components of articles without authorization to

return them to service. These interpretations of eligibility have

allowed several SFAR 36 authorizations to be issued and used

inconsistently with the original intent of the SFAR.

An aircraft ``product'' is an aircraft, airframe, aircraft engine,

propeller, or appliance. An aircraft ``article'' is an airframe,

powerplant, propeller, instrument, radio, or accessory. Although some

repair stations are authorized only to perform maintenance on parts of

articles or products, some SFAR 36 authorizations were used by these

repair station certificate holders to approve the articles and products

for return to service.

The FAA has found that while repair stations that specialize in the

repair of parts or components of aircraft articles or products may have

the technical capability and scope sufficient for the individual

repair, they do not necessarily possess the overall knowledge necessary

for returning an article or product to service. Only repair stations

and air carriers that understand the form, fit, and function of an

aircraft article or product should be authorized to approve that

article or product for return to service after a major repair.

Furthermore, one must understand the form, fit, and function of the

article or product in order to fully evaluate the ramifications of a

major repair being developed for that article or product. When the FAA

finds that a repair station or air carrier has that necessary

understanding, the FAA issues it a certificate and operations

specifications commensurate with that finding, and the repair station

or air carrier is granted return to service authority. This higher

level of certitude by the FAA in the work and knowledge of the repair

station or carrier that is authorized to approve the rated article or

product for return to service is the basis for the SFAR 36

authorization to develop and use data for major repairs without FAA

approval of the data. The preamble to the original SFAR 36 reflected

this intent to limit the authorization to these repair stations and

carriers when it discussed the need to have damaged aircraft repaired

and returned to service as quickly as possible. The SFAR 36 system was

never intended to support repairs accomplished further up in the repair

stream.

History

Prior to the adoption of SFAR 36, certificate holders that were

qualified to make repairs were required to obtain FAA approval on a

case-by-case basis for data they had developed to perform major

repairs. The only alternative to the time-consuming, case-by-case

approval method was to petition for and obtain an exemption granting

relief from the regulation. The number of exemptions being granted

indicated that revisions to the Federal Aviation Regulations (FAR) were

necessary, and SFAR 36 was adopted on January 23, 1978, as an interim

rulemaking action. Adoption of the SFAR eliminated the requirement for

authorized certificate holders to petition for exemption from the

regulation, and allowed the FAA additional time to obtain the

information necessary to develop a permanent rule change. Most of the

affected certificate holders, however, did not use the provisions of

SFAR 36 until it was well into its second year and nearing its

expiration date of January 23, 1980. Since the FAA did not yet have

sufficient data upon which to base a permanent rule change, the

termination data for SFAR 36 was extended to January 23, 1982.

Although the FAA has considered consolidating certain

authorizations along with those issued under SFAR 36 to make them

permanent parts of the regulations, no rulemaking action has been

undertaken, and SFAR 36 has been extended three times. Currently,

permanent regulatory action is under consideration by the Aviation

Rulemaking Advisory Committee (ARAC).

Synopsis of the Rule

Section 1

The FAA defines aircraft ``product,'' ``article,'' and

``component'' for the purpose of the SFAR. The definitions explain more

clearly an authorization holder's return to service authority.

Section 2

The FAA restates the general provisions of the current SFAR in

terms applicable to the individual types of eligible certificate

holders. Paragraph (c) of section 2 clarifies that an SFAR 36

authorization does not expand the scope of authority of a repair

station certificate holder; i.e., it does not give a repair station

return to service authority for any article for which it is not rated

or change the articles it is rated to repair.

Section 3

Section 3 states that an authorized certificate holder may approve

an aircraft product or article for return to service after

accomplishing a major repair, using data not approved by the

Administrator, only in accordance with the amended SFAR. Section 3

requires that the data used to perform the major repair be developed

and ``approved'' in accordance with the holder's authorization and

procedures manual. Section 3 also enables an authorization holder to

use its developed repair data on a subsequent repair of the same type

of product or article. For each subsequent repair, the holder must

determine that accomplishment of the repair, using previously developed

data, will return the product or article to its original or properly

altered condition and will conform to all applicable airworthiness

requirements. In addition, each subsequent use of the data would have

to be recorded in the authorization holder's SFAR records.

Section 4

Section 4 describes the procedures for applying for an SFAR 36

authorization.

Section 5

Section 5 identifies the requirements a certificate holder must

meet to be eligible for an SFAR 36 authorization. Paragraphs (a)(2),

(a)(3), and (b) define the personnel required and incorporate

clarifying changes from the current SFAR. Paragraph (c) contains the

reporting requirement of the current SFAR that pertains to changes that

could affect the holder's continuing ability to meet the SFAR

requirements.

Section 6

Section 6 describes the procedures manual requirements. Paragraph

(c) of section 6 requires that an authorization holder that experiences

a change in procedures or staff obtain and record FAA approval of the

change in order to continue to approve products or articles for return

to service.

Section 7

Section 7 states that SFAR 36 terminates on January 23, 1999. All

authorizations issued under this SFAR will terminate on that date

unless earlier surrendered, suspended, revoked, or otherwise

terminated. Section 7 also allows previous authorization holders to

either surrender their SFAR 36-developed data to the FAA or to maintain

the data indefinitely and make it available to the FAA for inspection.

Section 8

Section 8 prohibits the transfer of an SFAR 36 authorization.

Section 9

Section 9 contains the inspection provisions of the current SFAR.

It also emphasizes that the FAA must be able to determine whether an

applicant has, or a holder maintains, personnel adequate to comply with

the provisions of the SFAR and any additional limitations contained in

the authorization.

Section 10

Section 10 re-emphasizes that an SFAR 36 authorization does not

expand the scope of products or articles that an aircraft operator or

repair station is authorized to approve for return to service. This

section also emphasizes that the authorization allows a holder to

approve for return to service a product or article after major repair

performed by the holder using data developed by the holder without FAA

approval of that data.

Section 11

Section 11 contains the provision that each SFAR 36 authorization

holder must comply with any additional limitations prescribed by the

Administrator and made a part of the authorization.

Sections 12 and 13

Sections 12 and 13 address data review and service experience

requirements and record keeping requirements. Section 12 states the

circumstances in which a holder will be required to submit the

information necessary for corrective action on a repair. Paragraph (b)

of section 13 lists the identification information required rather than

use the term ``FAA identification,'' which has been the source of

confusion in previous versions of the regulation.

As noted above, the termination date for SFAR 36 is January 23,

1999. The 5-year extension was chosen to allow enough time for the ARAC

to deliberate and forward a recommendation, and enough time for the FAA

to deliberate and act upon it. On or about the effective date of this

final rule, each FAA office having jurisdiction over a current SFAR 36

authorization will reevaluate each holder in terms of the amended rule.

All current holders will be notified in writing as to whether they

continue to qualify under the amended rule.

The FAA will work with those holders that no longer qualify to

establish, where possible, means to perform approved major repairs. The

means may include submitting repair data to an aircraft certification

office (ACO) for approval, utilizing a consultant designated

engineering representative (DER) to approve the data, or employing a

company DER.

The extension of SFAR 36 will allow uninterrupted major repair

activity by the current authorization holders that qualify under the

amended SFAR; those authorizations will be extended without the holders

reapplying for authorization. The extension will also allow a new,

qualified applicant to obtain an authorization instead of petitioning

for exemption from the regulations.

Discussion of Comments

Interested persons were afforded the opportunity to participate in

development of this rulemaking by submitting written comments to the

public regulatory docket on or before November 22, 1993. All comments

received have been reviewed and duly considered in promulgating this

final rule; comments received after November 22, 1993, have been

considered to the extent possible without delaying this rulemaking

action. Ten comments were received; two from foreign aviation industry

companies, three from domestic aviation industry companies, and five

from domestic aviation industry associations. One of the foreign

commenters only requests a copy of the NPRM and does not offer

substantive comments. Of the remaining nine comments, one opposes the

NPRM and four support it. The other four commenters do not declare

agreement or opposition to the NPRM, but submit comments and

suggestions.

Four commenters state that a repair station that has the authority

to return to service a product or article should be able to develop and

use major repair data for components or parts of those products and

articles and return them to service as well. One of these commenters

suggested that the FAA meant to imply that air carriers and repair

stations that accomplish major repairs on products or articles are not

qualified to accomplish major repairs on parts or components of those

products or articles. The FAA agrees that repair stations with the

authority to return to service a product or article are qualified and

must be able to develop and use major repair data to perform repairs on

components or parts of those products or articles. The FAA disagrees,

however, that the repair station should automatically be permitted to

return to service those components or parts, unless the components or

parts are reinserted into the original product or article before

leaving the repair station. This SFAR addresses the development of

major repair data; the issues concerning accomplishing the repair and

return to service authority for repair stations for components or parts

is beyond the scope of this rulemaking, and no changes are made to the

NPRM pursuant to these comments.

Two commenters suggest that the final rule should allow current

holders of the SFAR 36 authorization to continue to use the

authorization for the term of the extension, or until a permanent rule

is in place. One of these commenters read the NPRM to mean that repair

stations currently conducting work under SFAR 36 must discontinue such

work. The FAA disagrees; the rule does not require that work be

discontinued, but rather that the repair station performing the work be

truly qualified before returning an article to service. As was stated

in the NPRM, some SFAR 36 authorizations were issued in error, due to

misinterpretations of the rule. The FAA has determined that the error

must not continue and those authorizations issued in error can not be

extended without the authorization holders meeting all qualifications.

The rule language proposed in the NPRM is retained to clarify the

qualifications.

One commenter is concerned that its current authorization may lapse

on the termination date of January 23, 1994. To ensure a smooth

transition, current SFAR 36 authorization holders will be permitted to

use their authorizations until the FAA notifies them that they do not

continue to qualify to hold the authorization.

One commenter proposes that the rule include a system of positive

identification on the restored product with traceability directly back

to the facility performing the major repair and to the specific data

package authorizing the major repair. The FAA agrees that this issue

has merit; however, such a requirement would add a substantial burden

not proposed in the NPRM. The suggestion is beyond the scope of this

rulemaking. Future documents such as Advisory Circulars, FAA Orders, or

other rulemaking projects, including those developed in the ARAC, may

consider this suggestion, if applicable.

One commenter suggests allowing foreign repair stations to use SFAR

36 authorizations to develop and use major repair data. The FAA

disagrees; SFAR 36 has never been available to foreign repair stations.

The resources and database systems currently available to oversee

foreign operations are not sufficient to adequately monitor such SFAR

36 authorizations. The rule will not be expanded to include foreign

repair stations.

One commenter suggests that the current SFAR 36 does not need

clarification, but rather Secs. 145.51(b) and 145.53 of the Federal

Aviation Regulations, which address return to service authority and

maintenance of rated items, need to be enforced. The FAA disagrees; the

erroneous issuance of SFAR 36 authorizations demonstrates that

ambiguity exists in the current rule. The rule sections cited by the

commenter are not at issue in improper SFAR 36 authorizations.

Increased enforcement of other regulations would not change the

ambiguity that exists in SFAR 36.

One commenter suggests that the three subsections of section 2 of

the rule be considered into one paragraph, along with other minor

revisions. The FAA realizes that some of the material in these

subsections is repeated, but the subsections do refer to different

sections of the regulations. Part of the confusion with the current

SFAR stems from the very combinations of information suggested by the

commenter. Section 2 was divided into three sections in order to

clarify what is available to different applicants.

One commenter suggests that section 6 of the NPRM be amended to add

that the Administrator must approve within 15 days a change in repair

station staff necessary to meet other requirements of the regulation or

a change in procedures approved under a separate paragraph of the

regulation. The FAA disagrees; often, more than 15 days is needed to

conduct research necessary to verify a new staff member's background

and ability or to evaluate procedures. The FAA can not grant approval

to necessary staff personnel or procedures without thoroughly

investigating all issues involved to ensure that the level of safety

intended by the rule continues to be met. No time limit for FAA

approval will be added to Section 6.

One commenter states that the qualifications of the SFAR 36 staff

engineering personnel should be consistent with qualifications assigned

to Designated Engineering Representatives with regard to damage

tolerance requirements. The FAA agrees; this issue is addressed in

Section 5(a)(3), which identifies engineering personnel that can

determine compliance with the applicable airworthiness requirements of

the regulations. Therefore, no change is made to the final rule.

Two commenters propose that section 5 of the SFAR be amended to

state that the applicant must have authority to repair products or

articles to be eligible to apply for an SFAR 36 authorization. The FAA

agrees that this is a helpful clarification; the final rule

incorporates this change.

One commenter proposes that the words ``article'' and ``product''

should both appear wherever one is currently used to encompass all

items intended. The FAA agrees in part, and has further determined that

the final rule should reflect one term where one most clearly states

the applicability of the corresponding provision. For example, FAR

Section 121.379(b) states that a certificate holder may approve for

return to service a product after maintenance, etc., performed under

paragraph (a) of Section 121.379. FAR Section 145.51b states that a

repair station certificate holder may approve for return to service any

article for which it is rated. Accordingly, the final rule has been

revised to use ``product'' when referring to repairs performed by air

carrier and air taxi certificate holders, and to use ``article'' when

referring to repairs performed by repair station certificate holders;

the final rule uses both terms where it does not distinguish between

the certificate holders.

One commenter suggests that clarification is needed as to whether a

repair station may continue to utilize major repair data developed

previously under its SFAR 36 authorization if that authorization

ceases, terminates, or expires. The FAA agrees that a clarification is

needed. A holder whose authorization has expired or has been terminated

may not use data previously developed under its authorization to

perform a major repair and return the product or article to service;

the relevant provisions of FAR parts 121, 127, and 145 cited in Section

2 of the proposed and final rule prohibit that return to service.

In addition, Section 7 of the final rule requires the holder to

surrender its SFAR 36-developed data to the FAA. However, the FAA

acknowledges that a holder whose authorization has expired or been

terminated may have a legitimate future use for the data; e.g., the

holder may apply to the FAA to have the data approved. Accordingly, to

accommodate the FAA's continued airworthiness concerns and a holder's

interest in data it has developed, Section 7 of the final rule has been

revised to allow a former authorization holder to surrender its SFAR

36-developed data, or maintain its data indefinitely and make the data

available to the FAA for inspection.

Paperwork Reduction Act

Information collection requirements in SFAR 36-6 have been approved

by the Office of Management and Budget (OMB) under the provisions of

the Paperwork Reduction Act of 1980 (Pub. L. 96-511) and have been

assigned the OMB Control Number 2120-0507. For further information

contact: The Information Requirements Division, M-34, Office of the

Secretary of Transportation, 400 Seventh Street, SW., Washington, DC

20590, (202) 366-4735.

Regulatory Evaluation

This section summarizes the regulatory evaluation prepared by the

FAA on the amendments to 14 CFR parts 121, 127, 135, and 145--Special

Federal Aviation Regulation No. 36, Development of Major Repair Data.

This summary and the full regulatory evaluation quantify, to the extent

practicable, estimated costs and anticipated benefits to the private

sector consumers, and Federal, State, and local governments.

The FAA has determined that this rulemaking is not a ``significant

regulatory action'' as defined by Executive Order 12866 (Regulatory

Planning and Review). The anticipated costs and benefits associated

with this final rule are summarized below. (A detailed discussion of

costs and benefits is contained in the full regulatory evaluation in

the docket for this final rule).

Cost Analysis

The FAA estimates that the one-time total cost of compliance will

be approximately $55 for the industry and about $840 for the FAA. This

cost estimate was derived based upon two components: (1) Current SFAR

36 certificate holders (that will not qualify under the amended rule)

applying for a DER, and (2) FAA costs to review SFAR 36 and DER

authorizations.

Benefit Analysis

The final rule, with the amended extension date, will allow certain

firms to continue to operate under SFAR 36, and will avoid economic

hardship to those relying on it as it presently exists. The final rule

will also eliminate ambiguities that exist in the present rule. These

ambiguities have allowed component repair stations that do not have

return to service authorization to receive SFAR 36 authorizations.

Repair stations that specialize in component or piece parts of products

(instead of aircraft engines or air frames, for example) and are not

returning those products to service, do not necessarily possess the

overall knowledge necessary for returning an article or product to

service. Only repair stations and air carriers that understand the

form, fit, and function of an aircraft article or product should be

authorized to approve that article or product for return to service

after a major repair.

There have been no known documented instances where aviation safety

has been compromised as a result of these repaired products being

returned. Nevertheless, the level of certitude should not be

compromised, and only those that understand the form, fit, and function

of the product should be permitted to return the product to service.

The benefits of this action are the potential improvements in

aviation safety.

Comparison of Costs and Benefits

The costs associated with this final rule ($55 to industry and $840

to the FAA) are minimal. In view of the negligible costs of the rule,

coupled with benefits in the form of enhanced safety to all aircraft

operators, the FAA has determined that the rule will be cost-

beneficial.

Final Regulatory Flexibility Determination

The Regulatory Flexibility Act of 1980 (RFA) ensures that small

entities are not unnecessarily and disproportionately burdened by

Government regulations. The RFA requires agencies to review rules that

may have a significant economic impact on a substantial number of small

entities. The costs associated with this final rule are below any

threshold established by FAA Order 2100.143A. Therefore, the final rule

will not have a significant economic impact on any small entity.

International Trade Impact Assessment

This final rule will have neither an effect on the sale of foreign

aviation products or services in the United States, nor an effect on

the sale of U.S. products or services in foreign countries since it

does not impose costs on aircraft operators or U.S. or foreign aircraft

manufacturers.

Federalism Implications

The regulations adopted herein will not have substantial direct

effects on the states, on the relationship between the national

government and the states, nor the distribution of power and

responsibilities among the various levels of government. Therefore, in

accordance with Executive Order 12612, it is determined that this final

rule will not have sufficient federalism implications to warrant the

preparation of a Federalism Assessment.

Justification for Immediate Adoption

The FAA has determined that delay in the adoption of this rule

would cause undue burden to qualified domestic repair stations, air

carriers, air taxi operators with large aircraft, and commercial

operators of large aircraft. These companies use their SFAR 36

authorizations to develop and use data not formerly approved by the FAA

for major repairs on products and articles. Current SFAR 36

authorizations will terminate on January 23, 1994, and this rule must

be effective for the companies affected to continue to use data

developed under the authorization to perform major repairs.

Accordingly, the FAA has determined that good cause exists to make this

rule effective in less than 30 days.

Conclusion

I certify that this final rule: (1) Is not a significant regulatory

action under Executive Order 12866; (2) is not a significant rule under

DOT Regulatory Policies and Procedures for Simplification, Analysis,

and Review of Regulations (44 CFR 11034, February 26, 1979); and (3)

will not have a significant economic impact, positive or negative, on a

substantial number of small entities under the criteria of the

Regulatory Flexibility Act. In addition, this final rule has little or

no impact on trade opportunities for U.S. firms doing business

overseas, or on foreign firms doing business in the United States.

List of Subjects

14 CFR Part 121

Air carriers, Airworthiness directives and standards, Aviation

safety, Safety.

14 CFR Part 127

Air carriers, Aircraft, Airmen, Airworthiness, Aviation safety,

Helicopters.

14 CFR Part 135

Air carriers, Air taxis, Air transportation, Aircraft, Airmen,

Airplanes, Airworthiness, Aviation safety, Helicopters, Safety.

14 CFR Part 145

Air carriers, Air transportation, Aircraft, Aviation safety,

Safety.

The Amendment

In consideration of the foregoing, the Federal Aviation

Administration amends 14 CFR parts 121, 127, 135, and 145 as follows:

PART 121--[AMENDED]

1. The authority citation for part 121 continues to read as

follows:

Authority: 49 U.S.C. app. 1354(a), 1355, 1356, 1357, 1401, 1421-

1430, 1472, 1485, and 1502; 49 U.S.C. 106(g).

PART 127--[AMENDED]

2. The authority citation for part 127 continues to read as

follows:

Authority: 49 U.S.C. app. 1354(a), 1421, 1422, 1423, 1424, 1425,

1430, 49 U.S.C. 106(g).

PART 135--[AMENDED]

3. The authority citation for part 135 continues to read as

follows:

Authority: 49 U.S.C. app. 1354(a), 1355(a), 1421-1431, and 1502;

49 U.S.C. 106(g).

PART 145--[AMENDED]

4. The authority citation for part 145 continues to read as

follows:

Authority: Secs. 313, 314, 601, and 607, 72 Stat. 752; 49 U.S.C.

app. 1354(a), 1355, 1421 and 1427; unless otherwise noted.

5. In parts 121, 127, 135, and 145, Special Federal Aviation

Regulation No. 36, the text of which is found at the beginning of part

121, is revised to read as follows:

SFAR No. 36

1. Definitions. For purposes of this Special Federal Aviation

Regulation--

(a) A product is an aircraft, airframe, aircraft engine,

propeller, or appliance;

(b) An article is an airframe, powerplant, propeller,

instrument, radio, or accessory; and

(c) A component is a part of a product or article.

2. General. (a) Contrary provisions of Sec. 121.379(b) of the

Federal Aviation Regulations notwithstanding, the holder of an air

carrier operating or commercial operating certificate, or the holder

of an air taxi operating certificate that operates large aircraft,

that has been issued operations specifications for operations

required to be conducted in accordance with 14 CFR part 121, may

perform a major repair on a product, as described in

Sec. 121.379(a), using technical data that have not been approved by

the Administrator, and approve that product for return to service,

if authorized in accordance with this Special Federal Aviation

Regulation.

(b) Contrary provisions of Sec. 127.40(b) of the Federal

Aviation Regulations notwithstanding, the holder of an air carrier

operating certificate that has been issued operations specifications

for operations required to be conducted in accordance with 14 CFR

part 127 may perform a major repair on a product as described in

Sec. 127.140(a), using technical data that have not been approved by

the Administrator, and approve that product for return to service,

if authorized in accordance with this Special Federal Aviation

Regulation.

(c) Contrary provisions of Sec. 145.51 of the Federal Aviation

Regulations notwithstanding, the holder of a domestic repair station

certificate under 14 CFR part 145 may perform a major repair on an

article for which it is rated, using technical data not approved by

the Administrator, and approve that article for return to service,

if authorized in accordance with this Special Federal Aviation

Regulation. If the certificate holder holds a rating limited to a

component of a product or article, the holder may not, by virtue of

this Special Federal Aviation Regulation, approve that product or

article for return to service.

3. Major Repair Data and Return to Service. (a) As referenced in

section 2 of this Special Federal Aviation Regulation, a certificate

holder may perform a major repair on a product or article using

technical data that have not been approved by the Administrator, and

approve that product or article for return to service, if the

certificate holder--

(1) Has been issued an authorization under, and a procedures

manual that complies with, Special Federal Aviation Regulation No.

36, effective on January 23, 1994;

(2) Has developed the technical data in accordance with the

procedures manual;

(3) Has developed the technical data specifically for the

product or article being repaired; and

(4) Has accomplished the repair in accordance with the

procedures manual and the procedures approved by the Administrator

for the certificate.

(b) For purposes of this section, an authorization holder may

develop technical data to perform a major repair on a product or

article and use that data to repair a subsequent product or article

of the same type as long as the holder--

(1) Evaluates each subsequent repair and the technical data to

determine that performing the subsequent repair with the same data

will return the product or article to its original or properly

altered condition, and that the repaired product or article conforms

with applicable airworthiness requirements; and

(2) Records each evaluation in the records referenced in

paragraph (a) of section 13 of this Special Federal Aviation

Regulation.

4. Application. The applicant for an authorization under this

Special Federal Aviation Regulation must submit an application, in

writing and signed by an officer of the applicant, to the FAA Flight

Standards District Office charged with the overall inspection of the

applicant's operations under its certificate. The application must

contain--

(a) If the applicant is

(1) The holder of an air carrier operating or commercial

operating certificate, or the holder of an air taxi operating

certificate that operates large aircraft, the--

(i) The applicant's certificate number; and

(ii) The specific product(s) the applicant is authorized to

maintain under its certificate, operations specifications, and

maintenance manual; or

(2) The holder of a domestic repair station certificate--

(i) The applicant's certificate number;

(ii) A copy of the applicant's operations specifications; and

(iii) The specific article(s) for which the applicant is rated;

(b) The name, signature, and title of each person for whom

authorization to approve, on behalf of the authorization holder, the

use of technical data for major repairs is requested; and

(c) The qualifications of the applicant's staff that show

compliance with section 5 of this Special Federal Aviation

Regulation.

5. Eligibility. (a) To be eligible for an authorization under

this Special Federal Aviation Regulation, the applicant, in addition

to having the authority to repair products or articles must--

(1) Hold an air carrier, commercial, or air taxi operating

certificate, and have been issued operations specifications for

operations required to be conducted in accordance with 14 CFR part

121 or 127, or Sec. 135.2, or hold a domestic repair station

certificate under 14 CFR part 145;

(2) Have an adequate number of sufficiently trained personnel in

the United States to develop data and repair the products that the

applicant is authorized to maintain under its operating certificate

or the articles for which it is rated under its domestic repair

station certificate;

(3) Employ, or have available, a staff of engineering personnel

that can determine compliance with the applicable airworthiness

requirements of the Federal Aviation Regulations.

(b) At least one member of the staff required by paragraph

(a)(3) of this section must--

(1) Have a thorough working knowledge of the applicable

requirements of the Federal Aviation Regulations;

(2) Occupy a position on the applicant's staff that has the

authority to establish a repair program that ensures that each

repaired product or article meets the applicable requirements of the

Federal Aviation Regulations;

(3) Have at least one year of satisfactory experience in

processing engineering work, in direct contact with the FAA, for

type certification or major repair projects; and

(4) Have at least eight years of aeronautical engineering

experience (which may include the one year of experience in

processing engineering work for type certification or major repair

projects).

(c) The holder of an authorization issued under this Special

Federal Aviation Regulation shall notify the Administrator within 48

hours of any change (including a change of personnel) that could

affect the ability of the holder to meet the requirements of this

Special Federal Aviation Regulation.

6. Procedures Manual. (a) A certificate holder may not approve a

product or article for return to service under section 2 of this

Special Federal Aviation Regulation unless the holder----

(1) Has a procedures manual that has been approved by the

Administrator as complying with paragraph (b) of this section; and

(2) Complies with the procedures contained in this procedures

manual.

(b) The approved procedures manual must contain--

(1) The procedures for developing and determining the adequacy

of technical data for major repairs;

(2) The identification (names, signatures, and responsibilities)

of officials and of each staff member described in section 5 of this

Special Federal Aviation Regulation who--

(i) Has the authority to make changes in procedures that require

a revision to the procedures manual; and

(ii) Prepares or determines the adequacy of technical data,

plans or conducts tests, and approves, on behalf of the

authorization holder, test results; and

(3) A ``log of revisions'' page that identifies each revised

item, page, and date of revision, and contains the signature of the

person approving the change for the Administrator.

(c) The holder of an authorization issued under this Special

Federal Aviation Regulation may not approve a product or article for

return to service after a change in staff necessary to meet the

requirements of section 5 of this regulation or a change in

procedures from those approved under paragraph (a) of this section,

unless that change has been approved by the FAA and entered in the

procedures manual.

7. Duration of Authorization. Each authorization issued under

this Special Federal Aviation Regulation is effective from the date

of issuance until January 23, 1999, unless it is earlier

surrendered, suspended, revoked, or otherwise terminated. Upon

termination of such authorization, the terminated authorization

holder must:

(a) Surrender to the FAA all data developed pursuant to Special

Federal Aviation Regulation No. 36; or

(b) Maintain indefinitely all data developed pursuant to Special

Federal Aviation Regulation No. 36, and make that data available to

the FAA for inspection upon request.

8. Transferability. An authorization issued under this Special

Federal Aviation Regulation is not transferable.

9. Inspections. Each holder of an authorization issued under

this Special Federal Aviation Regulation and each applicant for an

authorization must allow the Administrator to inspect its personnel,

facilities, products and articles, and records upon request.

10. Limits of Applicability. An authorization issued under this

Special Federal Aviation Regulation applies only to--

(a) A product that the air carrier, commercial, or air taxi

operating certificate holder is authorized to maintain pursuant to

its continuous airworthiness maintenance program or maintenance

manual; or

(b) An article for which the domestic repair station certificate

holder is rated. If the certificate holder is rated for a component

of an article, the holder may not, in accordance with this Special

Federal Aviation Regulation, approve that article for return to

service.

11. Additional Authorization Limitations. Each hold of a

authorization issued under this Special Federal Aviation Regulation

must comply with any additional limitations prescribed by the

Administrator and made a part of the authorization.

12. Data Review and Service Experience. If the Administrator

finds that a product or article has been approved for return to

service after a major repair has been performed under this Special

Federal Aviation Regulation, that the product or article may not

conform to the applicable airworthiness requirements or that an

unsafe feature or characteristic of the product or article may

exist, and that the nonconformance or unsafe feature or

characteristic may be attributed to the repair performed, the holder

of the authorization, upon notification by the Administrator,

shall--

(a) Investigate the matter;

(b) Report to the Administrator the results of the investigation

and any action proposed or taken; and

(c) If notified that an unsafe condition exists, provide within

the time period stated by the Administrator, the information

necessary for the FAA to issue an airworthiness directive under part

39 of the Federal Aviation Regulations.

13. Current Records. Each holder of an authorization issued

under this Special Federal Aviation Regulation shall maintain, at

its facility, current records containing--

(a) For each product or article for which it has developed and

used major repair data, a technical data file that includes all data

and amendments thereto (including drawings, photographs,

specifications, instructions, and reports) necessary to accomplish

the major repair;

(b) A list of products or articles by make, model,

manufacturer's serial number (including specific part numbers and

serial numbers of components) and, if applicable, FAA Technical

Standard Order (TSO) or Parts Manufacturer Approval (PMA)

identification, that have been repaired under the authorization; and

(c) A file of information from all available sources on

difficulties experienced with products and articles repaired under

the authorization.

This Special Federal Aviation Regulation terminates January 23,

1999.

Issued in Washington, DC, on January 21, 1994.

David R. Hinson,

Administrator.

[FR Doc. 94-1646 Filed 1-21-94; 4:24 pm]

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