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 holders of authorized

repair station or aircraft operating certificates may approve aircraft

products or articles for return to service after accomplishing major

repairs using self-developed repair data that have not been directly

approved by the FAA. Extension of the regulation continues to provide,

for those that qualify, an alternative from the requirement to obtain

direct FAA approval of major repair data on a case-by-case basis.

EFFECTIVE DATE: January 23, 1999.

FOR FURTHER INFORMATION CONTACT: Carol Martineau, Policy and Procedures

Branch, Aircraft Engineering Division, AIR-110, Federal Aviation

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

telephone: (202) 267-9568.

SUPPLEMENTARY INFORMATION:

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Any person may obtain a copy of this final rule by submitting a

request to the Federal Aviation Administration, Office of Rulemaking,

ARM-1, 800 Independence Avenue, SW., Washington, DC 20591, or by

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Small Entity Inquiries

The Small Business Regulatory Enforcement Fairness Act of 1996

(SBREFA) requires the FAA to report inquiries from small entities

concerning information on, and advice about, compliance with statutes

and regulations within the FAA's jurisdiction, including interpretation

and application of the law to specific sets of facts supplied by a

small entity.

If you are a small entity and have a question, contact your local

FAA official. If you do not know how to contact your local FAA

official, you may contact Charlene Brown, Program Analyst Staff, Office

of Rulemaking, ARM-27, Federal Aviation Administration, 800

Independence Avenue, SW., Washington, DC 20591, 1-888-551-1594.

Internet users can find additional information on SBREFA in the ``Quick

Jump'' section of the FAA's web page at http://www.faa.gov and may send

electronic inquiries to the following Internet address: 9-AWA-

[email protected]

Background

Notice No. 98-15, Special Federal Aviation Regulation No. 36.

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

on November 2, 1998. The comment period closed December 2, 1998. No

comments were received. The FAA proposed to extend the termination date

of and amend Special Federal Aviation Regulation (SFAR) No. 36, which

allows authorized certificate holders (domestic repair stations, and

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 directly approved by the

FAA. Currently, more than 25 air carrier and domestic repair station

certificate holders have SFAR 36 authorizations that will expire on

January 23, 1999.

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 regulations were necessary; SFAR 36 was

adopted on January 23, 1978, as an interim rulemaking action. Adoption

of the SFAR eliminate 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 an 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 date for SFAR 36 was extended to

January 23, 1982. To date, SFAR 36 has been extended four times.

On October 22, 1998, the Aviation Rulemaking Advisory Committee

(ARAC) submitted a proposal for permanent regulatory action to the FAA.

The proposal detailed a means of establishing an Organization

Designation Authorization program which would expand and further

standardize the approval functions of the FAA designee system and

proposed that certain functions and procedures, including those covered

by SFAR 36, be terminated and that current authorization holders be

allowed to apply for an Organization Designation Authorization. SFAR 36

is being extended an additional 5 years to allow time for the ARAC

proposal to be fully developed and implemented.

Synopsis of the Rule

Section 1

Aircraft ``product,'' ``article,'' and ``component'' are defined

for the purpose of the SFAR. The definitions clarify the scope of an

authorization holder's return to service authority.

Section 2

Paragraph (a) of section 2 describes the general provisions of the

current SFAR applicable to the individual types of eligible certificate

holders. This final rule amends paragraph (a) to reflect changes in the

regulations as a result of the Commuter Rule, which became effective on

December 20, 1995. Paragraph (b) of section 2 is deleted and reserved

to remove references to part 127. Part 127 was removed from the

[[Page 959]]

regulations when the Commuter Rule became effective. Paragraph (c) of

section 2 states that an SFAR 36 authorization does not expand the

scope of authority of a repair station certificate holder, for example,

the authorization does not give a repair station return to service

authority for any article for which it is not rated, nor can the

authorization change the articles a repair station 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 permits 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 confirm to all applicable airworthiness

requirements. In addition, each subsequent use of the data must 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. This final rule

amends Paragraph (a)(1) to delete the reference to part 127 and section

135.2, which were removed from the regulations when the Commuter Rule

became effective on December 20, 1995. Paragraphs (a)(2), (a)(3), and

(b) define the personnel required. 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 requirement for an approved procedures

manual and what information the procedures manual must contain.

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 under the SFAR.

Section 7

Section 7 sets forth the duration of the authorization. All

authorizations issued under this SFAR will terminate upon expiration of

the SFAR unless earlier surrendered, suspended, revoked, or otherwise

terminated. The final rule extends the duration until January 23, 2004.

Section 8

Section 8 prohibits the transfer of an SFAR 36 authorization.

Section 9

Section 9 retains the current inspection provisions. 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 states 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.

Section 11

Section 11 contains the provision that each SFAR 36 authorization

holder must comply with an 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 under which an authorization holder will be required to

submit the information necessary for corrective action on a repair.

Section 13 describes what information an authorization holder's records

must contain.

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

2004. The 5-year extension would allow time for the FAA to act upon the

proposal submitted by the ARAC for establishment of an Organization

Designation Authorization.

The extension of SFAR 36 would allow uninterrupted major repair

activity by the current authorization holders that qualify under the

amended SFAR; those authorizations would be extended without the

holders reapplying for authorization. The extension would also allow a

new, qualified applicant to obtain an authorization.

Paperwork Reduction Act

Information collection requirements in SFAR 36-7 have been approved

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

the Paperwork Reduction Act of 1995 and have been assigned the OMB

Control Number 2120-0507. The primary purpose of this final rule is to

extend SFAR 36. No additional paperwork burden would be created as a

result.

International Compatibility

The FAA has determined that a review of the Convention on

International Civil Aviation Standards and Recommended Practices is not

warranted because there is no comparable rule under ICAO standards.

Regulatory Evaluation

Proposed changes to Federal regulations must undergo several

economic analyses. First, Executive Order 12866 directs that each

Federal agency shall propose or adopt a regulation only upon a reasoned

determination that the benefits of the intended regulation justify its

costs. Second, the Regulatory Flexibility Act of 1980 requires agencies

to analyze the economic impact of regulatory changes on small entities.

Third, the Office of Management and Budget directs agencies to assess

the effects of regulatory changes on international trade. And fourth,

the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires

agencies to prepare a written assessment of the costs, benefits and

other effects of proposed or final rules that include a Federal mandate

likely to result in the expenditure by State, local or tribal

governments, in the aggregate, or by the private sector, of $100

million or more annually (adjusted for inflation).

In conducting these analyses, the FAA has determined that the

extension of Special Federal Aviation Regulation No. 36 (SFAR 36): (1)

would generate benefits that justify its costs; (2) is not a

significant regulatory action under section 3(f) of the Executive Order

and is not subject to review by the Office of Management and Budget;

(3) is not significant as defined in DOT's regulatory policies and

procedures (44 FR 11034; February 26, 1979); (4) would not have a

significant impact on a substantial number of small entities; (5) would

not affect international trade; and (6) does not contain a significant

intergovernmental or private sector mandate. These analyses, available

in the docket, are summarized below.

[[Page 960]]

Regulatory Evaluation Summary

This final rule extends the provisions of the existing SFAR 36 for

a five-year period. Therefore, there are no costs associated with this

final rule to either the industry or to the FAA.

The benefit of the final rule is that it allows the firms currently

operating under the provisions of SFAR 36 to continue to do so, thereby

avoiding the costs that would be incurred if SFAR 36 were to expire

before an extension of the existing SDFAR 36 was implemented.

Because the final rule has positive, although not quantifiable,

benefits and no costs the FAA has determined that the benefits exceed

the costs of the final rule.

Regulatory Flexibility Determination

The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a

principle of regulatory issuance that agencies shall endeavor,

consistent with the objective of the rule and of applicable statutes,

to fit regulatory and informational requirements to the scale of the

business, organizations, and governmental jurisdictions subject to

regulation.'' To achieve that principle, the Act requires agencies to

solicit and consider flexible regulatory proposals and to explain the

rationale for their actions. The Act covers a wide-range of small

entities, including small businesses, not-for-profit organizations and

small governmental jurisdictions.

Agencies must perform a review to determine whether a proposed or

final rule will have a significant economic impact on a substantial

number of small entities. If the determination is that it will, the

agency must prepare a regulatory flexibility analysis as described in

the Act.

However, if an Agency determines that a proposed or final rule is

not expected to have a significant economic impact on a substantial

number of small entities, section 605(b) of the Act provides that the

head of the agency may so certify and a regulatory flexibility analysis

is not required. The certification must include a statement providing

the factual basis for this determination, and the reasoning should be

clear.

There are no costs associated with the final rule. Consequently,

the FAA certifies that the final rule will not have a significant

economic impact on a substantial number of small entities.

International Trade Impact Assessment

Consistent with the Administration's belief in the general

superiority, desirability, and efficacy of free trade, it is the policy

of the Administrator to remove or diminish, to the extent feasible,

barriers to international trade, including both barriers affecting the

export of American goods and services to foreign countries and those

affecting the import of foreign goods and services into the United

States.

In accordance with that policy, the FAA is committed to develop as

much as possible its aviation standards and practices in harmony with

its trading partners.

This final rule affects only domestic firms. Therefore, there will

be no impact on international trade.

Federalism Implications

The regulations herein would not have substantial direct effects on

the states, on the relationship between the national government and the

states, or on the distribution of power and responsibilities among the

various levels of government. Therefore, in accordance with Executive

Order 12612, it is determined that this rule would not have sufficient

federalism implications to warrant the preparation of a Federalism

Assessment.

Unfunded Mandates Assessment

Title II of the Unfunded Mandates Reform Act of 1995 ( the Act),

enacted as Pub. L. 104-4 on March 22, 1995, requires each Federal

agency, to the extent permitted by law, to prepare a written assessment

of the effects of any Federal mandate in a proposed or final agency

rule that may result in the expenditure by State, local, and tribal

governments, in the aggregate, or by the private sector, of $100

million or more (adjusted annually for inflation) in any one year.

Section 204(a) of the Act, 2 U.S.C. 1534(a), requires the Federal

agency to develop an effective process to permit timely input by

elected officers (or their designees) of State, local, and tribal

governments on a proposed ``significant intergovernmental mandate.'' A

``significant intergovernmental mandate'' under the Act is any

provision in a Federal agency regulation that will impose an

enforceable duty upon State, local, and tribal governments, in the

aggregate, of $100 million (adjusted annually for inflation) in any one

year. Section 203 of the Act, 2 U.S.C. 1533, which supplements section

204(a), provides that before establishing any regulatory requirements

that might significantly or uniquely affect small governments, the

agency shall have developed a plan that, among other things, provides

for notice to potentially affected small governments, if any, and for a

meaningful and timely opportunity to provide input in the development

of regulatory proposals.

The FAA determines that this rule does not contain a significant

intergovernmental or private sector mandate as defined by the Act.

List of Subjects

14 CFR Part 121

Air carriers, Airworthiness directives and standards, Aviation

safety, Safety.

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 Title 14 of the Code of Federal Regulations parts

121, 135, and 145 as follows:

PART 121--OPERATING REQUIREMENTS: DOMESTIC, FLAG, AND SUPPLEMENTAL

OPERATIONS

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

follows:

Authority: 49 U.S.C. 106(g), 40113, 40119, 44101, 44701-44702,

44705, 44709-44711, 44713, 44716-44717, 44722, 44901, 44903-44904,

44912, 46105.

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON-DEMAND OPERATIONS

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

follows:

Authority: 49 U.S.C. 106(g), 44113, 44701-44702, 44705, 44709,

44711-44713, 44715-44717, 44722.

PART 145--REPAIR STATIONS

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

follows:

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

4. Special Federal Aviation Regulation No. 36 in part 121 and

referenced in parts 135 and 145 is amended by revising paragraphs 2(a),

3(a)(1), 5(a)(1), and 7 introductory text; by reserving paragraph 2(b)

and by revising the termination date to read as follows:

SFAR No. 36

* * * * *

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

Sec. 135.437(b) of this chapter notwithstanding, the holder of

[[Page 961]]

an air carrier certificate or operating certificate, that operates

large aircraft, and that has been issued operations specifications for

operations required to be conducted in accordance with 14 CFR part 121

or 135, may perform a major repair on a product as described in

Sec. 121.379(b) or Sec. 135.437(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) Reserved.

* * * * *

3. Major Repair Data and Return to Service. (a) * * *

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

that complies with, Special Federal Aviation Regulation No. 36-7,

effective on January 23, 1999;

* * * * *

5. Eligibility. (a) * * *

(1) Hold an air carrier certificate or operating certificate,

operate large aircraft, and have been issued operations specifications

for operations required to be conducted in accordance with 14 CFR part

121 or 135, or hold a domestic repair station certificate under 14 CFR

part 145;

* * * * *

7. Duration of Authorization. Each authorization issued under this

Special Federal Aviation Regulation is effective from the date of

issuance until January 23, 2004, unless it is earlier surrendered,

suspended, revoked, or otherwise terminated. Upon termination of such

authorization, the terminated authorization holder must:

* * * * *

This Special Federal Aviation Regulation terminates January 23,

2004.

Jane F. Garvey,

Administrator.

[FR Doc. 99-128 Filed 1-5-99; 8:45 am]

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