Part 145 Review: Repair Stations

SUMMARY: The Federal Aviation Administration (FAA) proposes to update

and revise the regulations for repair stations. This action is

necessary because many portions of the current repair station

regulations do not reflect changes in repair station business practices

and aircraft maintenance practices, or advances in aircraft technology.

The proposed revisions would reorganize the repair station rules to

reduce duplication of regulatory language and eliminate obsolete

information. The proposal also would establish new requirements that

relate to repair station ratings and classes, manual requirements,

recordkeeping, and personnel. In addition, the NPRM contains a proposal

to ensure that the special issues associated with repair stations

outside the United States are adequately addressed, and it invites

public comments on this proposal and other measures to ensure proper

safety oversight of these repair stations.

DATES: Comments must be received on or before October 19, 1999.

ADDRESSES: Comments on this document should be mailed or delivered, in

duplicate, to: U.S. Department of Transportation Dockets, Docket No.

[FAA-1999-5836], 400 Seventh Street SW., Room Plaza 401, Washington, DC

20590. Comments also may be sent electronically to the following

Internet address: [email protected] Comments may be filed and

examined in Room Plaza 401 between 10 a.m. and 5 p.m. weekdays, except

Federal holidays.

FOR FURTHER INFORMATION CONTACT: Richard E. Nowak, Aircraft Maintenance

Division, Airworthiness Systems and Air Agency Branch (AFS-330),

Federal Aviation Administration, 800 Independence Avenue, SW.,

Washington, DC 20591, telephone (202) 267-7228.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to participate in the making of the

proposed action by submitting such written data, views, or arguments as

they may desire. Comments relating to the environmental, energy,

federalism, or economic impact that might result from adopting the

proposals in this document also are invited. Substantive comments

should be accompanied by cost estimates. Comments must identify the

regulatory docket or notice number and be submitted in duplicate to the

DOT Rules Docket address specified above.

All comments received, as well as a report summarizing each

substantive public contact with FAA personnel concerning this proposed

rulemaking, will be filed in the docket. The docket is available for

public inspection before and after the comment closing date.

All comments received on or before the closing date will be

considered by the Administrator before taking action on this proposed

rulemaking. Comments filed late will be considered as far as possible

without incurring expense or delay. The proposals in this document may

be changed in light of the comments received.

Commenters wishing the FAA to acknowledge receipt of their comments

submitted in response to this document must include a pre-addressed,

stamped postcard with those comments on which the following statement

is made: ``Comments to Docket No. FAA-1999-5836.'' The postcard will be

date stamped and mailed to the commenter.

Availability of NPRMs

An electronic copy of this document may be downloaded using a modem

and suitable communications software from the FAA regulations section

of the FedWorld electronic bulletin board service (telephone: (703)

321-3339), the Government Printing Office (GPO)'s electronic bulletin

board service (telephone: (202) 512-1661), or, if applicable, the FAA's

Aviation Rulemaking Advisory Committee bulletin board service

(telephone: (800) 322-2722 or (202) 267-5948).

Internet users may reach the FAA's web page at http://www.faa.gov/

avr/arm/nprm/nprm.htm or the GPO's web page at http://

www.access.gpo.gov/nara access to recently published rulemaking

documents.

Any person may obtain a copy of this document by submitting a

request to the Federal Aviation Administration, Office of Rulemaking,

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

(202) 267-9680. Communications must identify the notice number or

docket number of this NPRM.

Persons interested in being placed on the mailing list for future

rulemaking documents should request from the above office a copy of

Advisory Circular No. 11-2A, Notice of Proposed Rulemaking Distribution

System, which describes the application procedure.

Background

Statement of the Problem

Aircraft, powerplants, maintenance, alteration concepts, and

technology have progressed substantially in the past three decades.

However, the current repair station regulations are based primarily on

concepts that were developed during the infancy of the aviation

industry. Very few substantive changes have been made to those repair

station rules since they were recodified in the Federal Aviation

Regulations (27 FR 6662, July 13, 1962).

Portions of Title 14 Code of Federal Regulations (14 CFR) part 145

are no longer appropriate or have become increasingly difficult to

administer. Other portions of the rule no longer make a significant

contribution to aviation safety or do not warrant the associated

administrative costs. The FAA and the aviation industry have had to

change the character and method of operations to keep pace with state-

of-the-art aviation maintenance practices. Also, the FAA has granted

exemptions and created other special administrative procedures to

handle situations not provided for adequately in the regulations. To

ensure that the regulations are appropriate for today's repair station

industry, the FAA has determined that part 145 should be completely

revised.

History

In 1975, the FAA and industry participants in the FAA's First

Biennial Operations Review recommended that specific and substantial

requirements of part 145 be revised. Although minor amendments to part

145 were subsequently adopted, no major revision was made. However, a

significant amendment to part 145 was adopted on November 22, 1988

(Amendment No. 145-21, 53 FR 47376), which expanded the scope of work

that foreign repair stations (i.e., those U.S.-certificated repair

stations located outside the United States) are authorized to perform,

and permitted certain repair stations to contract maintenance functions

to noncertificated repair organizations/facilities under specific

conditions.

[[Page 33143]]

As part of a regulatory review of 14 CFR part 43; 14 CFR part 65,

subpart E; and part 145, the FAA held several public meetings. These

meetings provided a forum for the public to offer comments concerning

the possible revision of the rules governing repair stations. More than

500 representatives of repair stations, airlines, unions,

manufacturers, foreign governments, industry organizations, and

individuals attended the meetings.

The goal of the meetings was to gather enough factual information

from the public to determine whether the repair station regulations

should be revised, and if so, to determine what revisions should be

made.

In preparation for the meetings, the FAA identified several areas

of the repair station rules as areas that might need revision. These

areas were: organization and format; ratings and classes; operations

and inspection procedures; manufacturers' maintenance facilities;

contracting of maintenance by repair stations; repair station

privileges; facility, housing, and equipment requirements;

recordkeeping and report requirements; and management, inspection

personnel, and repairmen qualifications. Participants discussed the

issues at the FAA public meetings and submitted written comments to

Docket No. 25965, which was established for this regulatory review.

Responses from participants at the meetings and the comments received

in the docket indicate a need to revise and update the repair station

regulations.

During the review of the repair station rules, the FAA examined

various documents and related rulemaking actions. These documents

included FAA Order 8300.10, Airworthiness Inspector's Handbook;

advisory circulars that relate to repair stations, such as AC No. 145-

3, Guide for Developing and Evaluating Repair Station Inspection

Procedures Manuals; AC No. 145-4, Inspection, Retread, Repair and

Alterations of Aircraft Tires; AC No. 145-5, Repair Station Internal

Evaluation Programs; and 145-6, Repair Stations for Composite and

Bonded Aircraft Structure; and previous petitions for exemption from

part 145. The FAA also reviewed Joint Aviation Requirement (JAR) 145:

Approved Maintenance Organizations, established by the Joint Aviation

Authorities (JAA), an organization of European Civil Aviation

Authorities. This NPRM includes efforts toward harmonizing the U.S.

repair station regulations with those of the JAA.

General Discussion of the Proposals

Based on the public meetings, comments to Docket No. 25965, and the

FAA's review of related documents, the FAA is proposing to revise part

145 completely. The FAA has decided not to include part 43 or part 65,

subpart E, in this notice, even though these parts were included in the

original regulatory review. Notice No. 94-27, Revision of Certification

Requirements: Mechanics and Repairmen (63 FR 37172, July 9, 1998),

proposes revisions to part 65, subpart E. Any revisions to part 43

would be addressed in a separate rulemaking action.

The FAA also considered establishing regulations, which were

discussed at the public meetings, that would permit certain repair

stations to manage the maintenance program of an operator certificated

under part 121 or part 135. However, the FAA decided not to address

such regulations in this NPRM. Any proposal to permit certain repair

stations to manage the maintenance program of a part 121 or part 135

operator would be addressed in a separate rulemaking action.

The FAA's discussion of the proposed revisions to part 145 is

organized as follows: organization and format of part 145,

manufacturers' maintenance facilities, deviation authority, ratings and

classes, implementation of the proposed ratings and classes, manual

requirements, quality assurance, capability list, contract maintenance,

job functions, training, line station maintenance, and recordkeeping

and reporting. Following these discussions is a section-by-section

discussion comparing the proposed rule to the current rule.

Organization and Format

Currently, part 145 separates the requirements for domestic repair

stations, foreign repair stations, and repair facilities with a limited

rating for manufacturers. However, the FAA's analysis of current part

145 revealed that, with few exceptions, no basic distinction exists

between the regulations governing operations of domestic repair

stations and those governing operations of foreign repair stations.

Therefore, the FAA proposes to remove the distinction between domestic

and foreign repair stations, except for a few instances where

differences exist. (The limited rating for manufacturers is discussed

under ``Manufacturers Maintenance Facilities.'')

The FAA proposes to revise the organization and format of part 145

to combine current similar requirements of domestic and foreign repair

stations under the same subpart and section. Proposed part 145 would

separate requirements according to subject matter in the following way:

General; Certification; Facilities, Equipment, Materials, and Housing;

Personnel; Operating Rules; and Job Functions. The proposed

reorganization would eliminate many of the redundancies found in the

current rule.

Manufacturers' Maintenance Facilities

The limited rating for manufacturers was established in 1966 by

Amendment No. 145-4 (31 FR 5248). The amendment enabled manufacturers

to obtain a repair station certificate with a limited rating under part

145 so they could perform maintenance or preventive maintenance on

articles manufactured by them without meeting certain repair station

requirements that other nonmanufacturer organizations were required to

meet. The amendment also broadened the manufacturers' rebuilding and

alteration authority to include appliances and parts manufactured under

an FAA Parts Manufacturer Approval. Facilities that obtain such a

rating are referred to as manufacturers' maintenance facilities (MMFs).

Currently, the FAA issues repair station certificates with limited

ratings for manufacturers to the holder or licensee of a Type

Certificate, the holder of a Production Certificate, the holder of a

Technical Standard Order authorization, or any person who meets the

requirements of current 14 CFR 21.303 and who has the prescribed

fabrication inspection system.

The FAA proposes to eliminate the limited ratings for manufacturers

and require that these facilities obtain the appropriate repair station

certificate. Although MMFs' systems for inspection, recordkeeping, and

quality control vary considerably from those used by repair stations,

MMF repair operations do not differ substantially from the operations

of other certificated repair stations. Because maintenance practices

and aircraft technologies have evolved since the establishment of

limited ratings for manufacturers, the FAA has determined that all

repair facilities' systems for inspection, recordkeeping, and quality

control should be consistent, and that the issuance of limited ratings

for manufacturers is no longer appropriate. In granting certification

for a manufacturer's repair station, however, the FAA proposes that

full consideration be given to the quality control system established

by the manufacturer that the manufacturer uses to comply with the

pertinent provisions

[[Page 33144]]

of 14 CFR part 21. The manufacturer's repair station must operate,

however, in compliance with the maintenance rules set forth in parts 43

and 145.

Deviation Authority

The FAA proposes to include deviation authority to provide

flexibility to operations subject to part 145 that may be safely or

satisfactorily conducted as an alternative means of compliance with

portions of part 145. The FAA envisions that limited deviation would be

sought from only a few specific sections, and that Letters of Deviation

Authority would likely be limited in scope.

Requests for deviation authority would be made in a form and manner

acceptable to the Administrator, and the FAA would review the

circumstances of each operator requesting a deviation, during the

determination process. If a deviation were warranted, the FAA would

require that operations be conducted subject to certain conditions and

limitations. These would be placed in the Operations Specifications of

an operator certificated under part 145. Consistency in granting

deviation authority would be achieved by the provision that only the

Associate Administrator for Regulation and Certification (AVR-1) could

issue letters of deviation authority. The FAA is requesting public

comments on the practicality of deviation authority in the proposed

rule, as well as situations under which deviation authority may be

appropriate.

In addition, the public also is invited to comment on alternative

means of compliance for any section of the proposal. Where appropriate,

alternative means of compliance will be incorporated in the final rule,

if adopted.

Ratings and Classes

The FAA proposes to revise the ratings and classes that can be

issued to certificated repair stations. Although the proposed ratings

and classes are based on those discussed at the public meetings

mentioned earlier, the FAA also considered basing the ratings and

classes strictly on certification standards (i.e., 14 CFR parts 21, 23,

25, 27, 29, 33, and 35). The FAA requests that commenters specifically

address whether the proposed system of ratings and classes should be

prescribed in a separate new regulation. A comparison of the proposed

ratings to the current ratings follows.

------------------------------------------------------------------------

Current rating Proposed fating

------------------------------------------------------------------------

Airframe Rating Aircraft Rating

------------------------------------------------------------------------

Class 1: Composite construction of Class 6: Aircraft composed

small aircraft. primarily of composite material,

of 12,500 pounds maximum

certificated takeoff weight or

less.

Class 2: Composite construction of Class 7: Aircraft composed

large aircraft. primarily of composite material,

over 12,500 pounds maximum

certificated takeoff weight.

Class 3: All-metal construction of Class 1: Aircraft (other than

small aircraft. rotorcraft and aircraft composed

primarily of composite material)

of 12,500 pounds maximum

certificated takeoff weight or

less.

Class 4: Rotorcraft (other than

rotorcraft composed primarily of

composite material) of 6,000

pounds maximum certificated

takeoff weight or less.

Class 5: Rotorcraft (other than

rotorcraft composed primarily of

composite material) over 6,000

pounds maximum certificated

takeoff weight.

Class 4: All-metal construction of Class 2: Aircraft (other than

large aircraft. rotorcraft and aircraft composed

primarily of composite material)

over 12,500 pounds maximum

certificated takeoff weight and up

to, and including, 75,000 pounds

maximum certificated takeoff

weight.

Class 3: Aircraft, by make and

model, (other than rotorcraft and

aircraft composed primarily of

composite material) over 75,000

pounds maximum certificated

takeoff weight.

------------------------------------------------------------------------

Powerplant Rating Powerplant Rating

------------------------------------------------------------------------

Class 1: Reciprocating engines of Class 1: Reciprocating engines.

400 horsepower or less.

Class 2: Reciprocating engines of Class 1: Reciprocating engines.

more than 400 horsepower.

Class 3: Turbine engines........... Class 2: Turbopropeller and

turboshaft engines.

Class 3: Turbojet and turbofan

engines.

------------------------------------------------------------------------

Propeller Rating Propeller Rating

------------------------------------------------------------------------

Class 1: All fixed-pitch and ground- Class 1: Fixed-pitch and ground-

adjustable propellers of wood, adjustable propellers.

metal, or composite construction.

Class 2: All other propellers, by Class 2: Variable-pitch propellers.

make.

------------------------------------------------------------------------

Radio Rating Avionics Rating

------------------------------------------------------------------------

Class 1: Communication equipment... Class 1: Communication equipment.

Class 2: Navigational equipment.... Class 2: Navigational equipment.

Class 3: Radar equipment........... Class 3: Pulsed equipment.

------------------------------------------------------------------------

No Equivalent Current Rating Computer Systems Rating

------------------------------------------------------------------------

Class 1: Aircraft computer systems.

Class 2: Powerplant computer

systems.

Class 3: Avionics computer systems.

------------------------------------------------------------------------

[[Page 33145]]

Instrument Rating Instrument Rating

------------------------------------------------------------------------

Class 1: Mechanical................ Class 1: Mechanical.

Class 2: Electrical................ Class 2: Electrical.

Class 3: Gyroscopic................ Class 3: Gyroscopic.

Class 4: Electronic................ Class 4: Electronic.

------------------------------------------------------------------------

Accessory Rating Accessory Rating

------------------------------------------------------------------------

Class 1: Mechanical accessories Class 1: Mechanical accessories

that depend on friction, that depend on friction,

hydraulics, mechanical linkage, or hydraulics, mechanical linkage, or

pneumatic pressure for operation, pneumatic pressure for operation.

including aircraft wheel brakes,

mechanically driven pumps,

carburetors, aircraft wheel

assemblies, shock absorber struts,

and hydraulic servo units.

Class 2: Electrical accessories Class 2: Electrical accessories

that depend on electrical energy that depend on or produce

for their operation, and electrical energy.

generators, including starters,

voltage regulators, electric

motors, or similar electrical

accessories.

Class 3: Electronic accessories Class 3: Electronic accessories

that depend on an electron tube, that depend on transistors;

transistor, or similar device, lasers; fiber optics; solid-state,

including supercharger, integrated circuits; vacuum tubes;

temperature, air conditioning or similar devices.

controls, or similar electronic

controls.

Class 4: Auxiliary power units

(APUs) that may be installed on

aircraft as self-contained units

to supplement the aircraft's

engines as a source of hydraulic,

pneumatic, or electrical power.

------------------------------------------------------------------------

Limited Rating Limited Rating

------------------------------------------------------------------------

For airframes; engines; propellers; For aircraft, airframes,

instruments; radio equipment; powerplants, propellers, avionics,

accessories; landing gear; computer systems, instruments, and

components; floats; nondestructive accessories by make and model.

inspection, testing, and

processing; emergency equipment;

rotor blades by make and model;

aircraft fabric work; and other

purposes.

------------------------------------------------------------------------

Limited Rating for Specialized Specialized Service Rating

Service

------------------------------------------------------------------------

For example, landing gear For any specialized service the

components; nondestructive Administrator finds appropriate

inspection, testing, and for this rating.

processing; emergency equipment;

aircraft fabric work; and any

other specialized service the

Administrator finds appropriate

for this rating.

------------------------------------------------------------------------

Limited Rating for Manufacturers No Equivalent Rating in Proposed

Rule

------------------------------------------------------------------------

To holder or licensee of Type

Certificate or to holder of

Production Certificate, Parts

Manufacturer Approval, or

Technical Standard Order.

------------------------------------------------------------------------

Aircraft Class Rating

Currently, the FAA issues an airframe rating with any of four

separate class ratings to repair stations: Classes 1, 2, 3, and 4.

Under the proposal, the FAA would eliminate the airframe rating and its

associated class ratings and establish an aircraft rating with seven

associated class ratings.

Under the current system, airframe class ratings are based on

aircraft weight (large or small as defined in current 14 CFR 1.1) and

construction (composite or all-metal). Many modern aircraft have an

airframe that is constructed of metal and composite materials; the

airframe structure is metal and certain portions, such as control

surfaces and fairings, are manufactured from composite materials. The

FAA proposes to continue to separate ratings based on weight and

construction; however, to accurately reflect modern aircraft

construction, aircraft ratings would be separated by whether the

aircraft is constructed primarily of metal or composite material. Those

aircraft on which significant amounts of the structure is constructed

of composite materials, such as the fuselage, empennage, wings, or

structure that the manufacturer has designated as a primary structure

or principal structural element, would be considered primarily

constructed of composite materials. Those aircraft with a metal

structure and small composite pieces such as fairings, radomes, and so

forth would be considered not composed primarily of composite

materials. For repair stations that intend to perform work on aircraft

that have significant structural components of both metal and composite

material, certification under Class 2 and Class 7 may be necessary.

For repair stations that want to perform maintenance, preventive

maintenance, or alterations on all aircraft, including rotorcraft that

are primarily composed of composite materials, the FAA proposes to

establish the Class 6 and Class 7 aircraft ratings. The Class 6 rating

would be for small aircraft, and the Class 7 rating would be for large

aircraft.

As noted above, current airframe ratings are based on aircraft

weight. The current Class 2 and Class 4 airframe ratings apply to

``large'' aircraft (those of more than 12,500 pounds maximum

certificated takeoff weight). Because today's large aircraft vary

significantly in complexity, the FAA proposes to establish three

aircraft class ratings to separate them: Classes 2, 3, and 7.

The proposed Class 2 and Class 7 aircraft ratings would apply to

large aircraft, other than rotorcraft, based on the aircraft's

construction (Class 2: not composed primarily of composite materials;

or Class 7: composed primarily of composite materials). The proposed

Class 3 aircraft rating would apply to aircraft (other than rotorcraft

or aircraft composed primarily of composite material) over 75,000

pounds maximum certificated takeoff weight and would be granted only by

make and

[[Page 33146]]

model. The FAA chose to establish the proposed Class 3 rating because

these aircraft are usually more complex than other aircraft and are

transport category airplanes.

Currently, a repair station with an airframe rating that wants to

perform maintenance on powerplants must obtain a powerplant rating;

however, a repair station that meets the requirements of the proposed

aircraft rating would be permitted to perform maintenance, preventive

maintenance, and alterations to each aircraft's associated

powerplant(s) up to, but not including, an ``overhaul.'' Because

overhauls require additional training, data, facilities, housing, and

equipment, a repair station that wants to overhaul powerplants would

continue to be required to obtain a powerplant rating with an

appropriate class rating. Those repair stations that meet the

requirements for performing maintenance, preventive maintenance, or

alterations on airframes, but do not want to, or cannot, perform any

work on powerplants, would be certificated with a limited rating for

airframes.

Under the current rating system, separate class ratings do not

exist for rotorcraft. However, a repair station that performs

maintenance, preventive maintenance, or alterations on rotorcraft must

meet certain requirements. The requirements to perform work on

rotorcraft are unique enough to require separate class ratings for

rotorcraft. Therefore, the FAA proposes to establish the Class 4 and

Class 5 aircraft ratings for rotorcraft, excluding those composed

primarily of composite material. (Composite rotorcraft would be

included in either the proposed Class 6 or Class 7 rating.) The 6,000

pound division used in rotorcraft certification would be maintained as

the dividing line between the proposed Class 4 and Class 5 aircraft

ratings. Rotorcraft with a maximum certificated takeoff weight of 6,000

pounds or less are certificated under 14 CFR part 27, Airworthiness

standards: normal category rotorcraft. Rotorcraft with a maximum

certificated takeoff weight of greater than 6,000 pounds are

certificated under 14 CFR part 29, Airworthiness standards: transport

category rotorcraft. Transport category rotorcraft certificated under

part 29 must meet more stringent certification requirements; therefore,

repair stations that wish to perform work on these aircraft may require

different tooling, equipment, personnel, and so forth from those repair

stations performing work on normal category rotorcraft certificated

under part 27.

The FAA considered establishing separate aircraft class ratings for

free balloons, airships, and gliders. Many repair stations that perform

maintenance, preventive maintenance, or alterations on these aircraft

currently hold a limited rating. However, the FAA does not choose to

establish separate aircraft class ratings for these aircraft because

these aircraft are less common than airplanes and rotorcraft. As

proposed, repair stations that want to perform work only on these

aircraft would continue to apply for a limited rating.

Powerplant Rating

The current regulations define three classes that are associated

with a powerplant rating: Class 1 Reciprocating engines of 400

horsepower or less, Class 2 Reciprocating engines of more than 400

horsepower, and Class 3 Turbine engines. The FAA proposes to revise the

powerplant ratings by combining all reciprocating engine ratings into

the same class and dividing the turbine engine rating into two ratings.

When the current powerplant ratings were established, reciprocating

engines of more than 400 horsepower were common. Today, these

reciprocating engines usually are found on older aircraft and are less

common. Therefore, the FAA has determined that a separate class rating

for reciprocating engines of more than 400 horsepower is no longer

necessary.

Conversely, when the current powerplant ratings were established,

turbine engines were just beginning to be used on civil aircraft.

Today, turbine engines are the most commonly used engines on transport

category aircraft. In addition, more types of turbine engines exist

today with technological differences between each type. Therefore,

establishing two turbine class ratings is appropriate. Because

turbopropeller and turboshaft engines have many technological

similarities, the Class 2 powerplant rating has been proposed for these

engines. The proposed Class 3 powerplant rating would be used for

turbojet and turbofan engines because of the technological similarities

of these types of engines.

Propeller Rating

Under the current regulations, a repair station that holds a

propeller rating with a Class 1 rating is permitted to perform

maintenance, preventive maintenance, or alterations on all fixed-pitch

and ground-adjustable propellers of wood, metal, or composite

construction. A repair station that holds a propeller rating with a

Class 2 rating is permitted to perform maintenance, preventive

maintenance, or alterations on all other propellers, by make.

Because of advances in propeller construction technologies, the

current propeller class ratings would be revised. Proposed

Sec. 145.59(c) would revise the current Class 1 rating by eliminating

the references to the types of materials of which fixed-pitch and

ground-adjustable propellers are constructed. The proposed Class 2

propeller rating would no longer require propellers to be designated by

make and would permit a repair station to perform maintenance,

preventive maintenance, or alterations on any variable-pitch propellers

regardless of make.

Avionics Rating

The FAA proposes to replace the current radio rating with an

avionics rating to address more appropriately today's avionics

technology. The current radio class ratings are: Class 1 Communication

equipment, Class 2 Navigation equipment, and Class 3 Radar equipment.

The FAA proposes the following avionics class ratings: Class 1

Communication equipment, Class 2 Navigation equipment, and Class 3

Pulsed equipment.

The proposed Class 1 avionics rating would be unchanged from the

current radio class rating (communication equipment) and would apply to

radio transmitting equipment and receiving equipment used in aircraft

to send or receive communications, regardless of carrier frequency or

type of modulation used.

The proposed Class 2 avionics rating would apply to any system used

in aircraft for en route or approach procedures, except navigation

equipment operated on pulsed radio frequency principles. This proposed

class differs from the current Class 2 radio rating, which includes

equipment operated on pulsed radio principles. (Pulsed frequency

equipment would be included in the proposed Class 3 avionics rating.)

Under the proposal, a repair station with a Class 2 avionics rating

would be permitted to perform maintenance on the following equipment:

very high frequency omnirange (VOR), automatic direction finder (ADF),

localizer, glide slope, marker beacon, loran C, omega, inertial

navigation system, microwave landing system (MLS), global positioning

system (GPS), and similar devices.

The FAA proposes to replace the current Class 3 radio rating for

radar equipment with a Class 3 avionics rating for pulsed equipment.

The proposed rating would include aircraft electronic systems operated

on pulsed radio frequency principles. A repair station with a Class 3

avionics rating would be permitted to perform maintenance on

[[Page 33147]]

distance measuring equipment (DME), transponders, weather radar, radar

altimeters, ground proximity warning systems (GPWS), and similar

devices.

Computer Systems Rating

The FAA proposes to establish a new rating for computer systems to

include technology that was not used in aircraft when the current

rating system was instituted. Under the proposal, three classes for the

computer rating would be established: Class 1 Aircraft computer systems

such as flight management and flight control systems, Class 2

Powerplant computer systems such as fuel control and electronic engine

control systems, and Class 3 Avionics computer systems such as traffic

alert and collision avoidance systems (TCAS) and electronic flight

instrument systems (EFIS).

Participants at the public meetings expressed concern that

confusion could exist about whether accessories, instruments, and

avionics equipment that may include a computer system would fall under

the proposed computer rating. The FAA recognizes that maintenance,

preventive maintenance, or alterations on such articles should not be

performed under the proposed computer rating. The proposed computer

rating would apply to self-contained, separate computer systems that

can be removed as a unit from an aircraft for maintenance, preventive

maintenance, or alteration. For example, a fuel control unit can be

removed from an aircraft, but its internal computer system is a portion

of the fuel control unit. In this case, the computer system is not a

self-contained, separate system that can be removed as a unit from the

aircraft. Under the proposed ratings, a repair station still would

require an accessory rating to perform work on a fuel control unit.

Possessing an accessory rating would include the capability to maintain

the computer portion of the fuel control unit.

Instrument Rating

Currently, the class ratings associated with an instrument rating

are: Class 1 Mechanical, Class 2 Electrical, Class 3 Gyroscopic, and

Class 4 Electronic. The FAA proposes that these ratings be retained

except for a change to the description of the Class 4 instrument

rating. The description would be revised by adding references to

lasers, fiber optics, and solid-state, integrated circuits.

Accessory Rating

Currently, there are three class ratings associated with

accessories: Class 1 Mechanical accessories that depend on friction,

hydraulics, mechanical linkage, or pneumatic pressure for operation;

Class 2 Electrical accessories that depend on electrical energy for

their operation and generators; and Class 3 Electronic accessories that

depend on the use of an electron tube, transistor, or similar devices.

Under the proposal, these class ratings basically would remain

unchanged; however, the current practice of including auxiliary power

units (APUs) in the Class 1 rating would be discontinued. The proposal

would establish a new accessory rating (Class 4) for APUs.

Because APUs were not widely used when current part 145 was

established, no provisions for them were specifically included in the

regulations. Repair stations that currently work on APUs perform that

work under a Class 1 accessory rating for lack of a more appropriate

rating under part 145. Because APUs are similar in many respects to

aircraft engines, facilities wishing to approve them for return to

service should meet specific requirements before receiving

authorization to do so. Repair stations meeting these requirements

would operate under the proposed Class 4 accessory rating.

The scope of work that currently may be performed by a repair

station that holds an accessory rating with either a Class 2 or Class 3

rating would not be revised; however, the FAA proposes to revise the

descriptions for each to include more modern accessories. A Class 2

rating would consist of electrical accessories that depend on or

produce electrical energy, and a Class 3 rating would consist of

electronic accessories that depend on the use of transistors; lasers;

fiber optics; solid-state, integrated circuits; vacuum tubes; and other

similar electronic devices.

Limited and Specialized Service Ratings

Currently, the FAA issues limited ratings to repair stations to

perform maintenance, preventive maintenance, or alterations to

airframes, engines, propellers, instruments, radio equipment,

accessories, landing gear components, emergency equipment, rotor

blades, and floats. In addition, limited ratings are issued to perform

nondestructive testing, inspection and processing, aircraft fabric

work, and for other purposes. The FAA proposes to revise this list by

changing the term ``engines'' to ``powerplants'' and ``radio

equipment'' to ``avionics equipment'', respectively; adding aircraft

and computer systems; and deleting rotor blades, landing gear

components, and floats. Current limited ratings for rotor blades,

landing gear components, and floats would be included in the proposed

limited rating for an airframe, because airframe as defined in current

Sec. 1.1 includes those items.

In addition, the FAA currently issues (as a subset of limited

ratings) limited ratings for specialized services such as

nondestructive inspection, testing, and processing; servicing of

emergency equipment; aircraft fabric work; and any other purposes for

which the Administrator finds the applicant's request appropriate. The

FAA proposes to replace the current limited rating for a specialized

service with the proposed specialized service rating.

The proposed specialized service rating would apply to specific

equipment or processes. The rating would permit a repair station to

perform maintenance, preventive maintenance, or alterations on items

such as emergency equipment or audiovisual and nonessential equipment

(e.g., in-flight telephones or television and movie equipment). This

proposed rating also would permit a repair station to perform specific

types of work, such as nondestructive inspection and testing, plating

and machining, aircraft and engine welding, and oxygen equipment

servicing.

Under this proposal, a holder of a specialized service rating would

continue to be required to state in its Operations Specifications the

specification or standards used for performing the specialized service.

The specification could be a civilian or military specification that is

currently used by industry and approved by the Administrator or a

specification developed by the repair station and approved by the

Administrator.

Implementation of the Proposed Ratings and Classes

The FAA proposes to establish a new Sec. 145.61, ``Transition to

new system of ratings.'' This proposed section would require all repair

stations to meet the requirements in this proposal within specified

periods of time. The transition process and the deadlines for

compliance with the proposed regulation would be dictated by one of

three possible cases as described below.

The first case involves a repair station (to include an MMF) that

makes no changes to its certificates between the effective date of this

rule, if adopted, and the proposed 2-year compliance date. Under

proposed Sec. 145.61(a), a repair station that takes no action to

affect its certificate (such as adding or deleting a class rating)

would be permitted to continue meeting only the requirements of current

part 145 for up to 2 years. However, repair stations in

[[Page 33148]]

this situation would not be required to wait until the end of the 2-

year period to make the transition to operations under the proposed

rule. These repair stations would be encouraged to apply for their new

certificate well before the end of the 2-year transition period to

avoid any potential administrative delays.

The second case involves a repair station (to include an MMF) that

wishes to make a change to its repair station certificate during the 2-

year transition period. Proposed Sec. 145.61(b) would require a repair

station that desires to amend, revise, or add a rating to its

certificate to obtain a completely new repair station certificate and

meet all new applicable requirements as set forth in proposed part 145.

The new repair station certificate would reflect each of the new

ratings under which the repair station is authorized to either begin or

continue exercising privileges. The following example illustrates this

case: A repair station currently holds a repair station certificate

with an airframe Class 3 rating and instrument Class 1 and 2 ratings,

and decides to apply for an accessory Class 1 rating. At the time of

its application, this repair station would be required to meet the new

requirements and apply for all of the ratings for which it wishes to

exercise privileges. Therefore, the repair station would apply for

instrument Class 1 and 2 ratings, the accessory Class 1 rating, and the

aircraft Class 1 rating. The repair station would not be permitted to

continue to exercise the privileges of its old airframe Class 3 rating

following the change to its certificate.

The third case involves a repair station (to include an MMF) that

is sold, leased, or otherwise conveyed following the adoption of this

proposal. Regardless of whether the repair station is operating under

the old or new system of ratings and classes, at the time of such

conveyance, the receiving entity would be required to meet proposed

part 145 and apply for and receive a new repair station certificate.

Transfers such as these would be conducted in the same manner as under

the current rule, except the receiving entity would not be able to

apply for a certificate under the old system of ratings and classes. As

under the current rule, the conveying entity's repair station

certificate would expire at the time of asset transfer.

The FAA recognizes the administrative burden of applying for a new

repair station certificate as well as the complexity of the proposed

transition to the new system of ratings and classes. The FAA also

recognizes the potential burden on its own personnel and the potential

administrative backlog if, in the interest of their own advertising

efforts, many repair stations quickly attempt to transition to the new

system. Therefore, the FAA is requesting public comments on alternative

methods for achieving a smooth transition from the current system to

the new system.

Establishment of the Repair Station Manual

Currently, a repair station must maintain an Inspection Procedures

Manual (IPM) describing the repair station's inspection system. Repair

stations also must meet requirements in part 145 that currently are not

required to be documented in the IPM (e.g., recordkeeping and

personnel). Because of the complexity of many repair stations'

operations, the repair stations should document additional aspects of

their operations and not limit the manual to a description of the

inspection system.

The FAA proposes to eliminate the requirement that repair stations

maintain an IPM and, as proposed in Sec. 145.205, replace it with a

requirement that repair stations maintain an approved repair station

manual that covers all of the repair station's technical operations.

The proposed manual would cover items currently described as acceptable

in AC No. 145-3, Guide for Developing and Evaluating Repair Station

Inspection Procedures Manuals, which are proposed as repair station

manual requirements in this NPRM. The proposed manual would be required

to include the repair station's procedures and policies that cover the

operation of the repair station. All repair station personnel would be

required to follow the manual while conducting operations. Repair

stations with non-English speaking personnel may therefore have to

translate all or certain portions of the proposed manual into the

native language of personnel using the manual. Specific requirements

for the repair station manual are described throughout the section-by-

section discussion and listed in the proposed rule.

Current Sec. 145.45(f) requires a repair station to provide each of

its supervisory and inspection personnel with a copy of the IPM and to

make the IPM available to its other personnel. The requirement for all

repair stations' supervisory and inspection personnel to each have a

copy of the manual is unnecessarily burdensome. The FAA has granted

numerous exemptions from this requirement that allow repair stations to

maintain a master copy of the IPM and one shop copy for use by all

personnel. Proposed Sec. 145.205(e) would require only that the

proposed repair station manual be readily available to all repair

station personnel. This provision would permit a repair station to have

shop copies or electronic versions of the proposed manual and would

reduce the burden of updating multiple copies of the manual.

Under proposed Sec. 145.205(f), a repair station would be required

to provide a current copy of the manual to the FAA certificate holding

district office (CHDO). If a repair station uses a repair station

manual that is in an electronic format, the repair station would be

required to provide the FAA with either a current paper copy or the

means (hardware, software, etc.) to access the current manual at the

CHDO.

Quality Assurance

Current part 145 does not require a repair station to establish and

use a quality assurance system that monitors the effectiveness of the

certificate holders' procedures, training, and inspection; however,

many repair stations and air carriers have implemented and use such

quality assurance systems. In addition, the JAA requires each JAA-

approved maintenance organization (which includes some U.S. repair

stations) to establish an independent quality system that monitors

compliance with and adequacy of the procedures used to ensure good

maintenance practices and airworthy aircraft and aircraft components.

After reviewing the success of quality assurance and quality

monitoring systems, the FAA has determined that quality assurance

systems are necessary to ensure that maintenance, preventive

maintenance, or alterations (including the maintenance and alterations

performed by a repair station's contractors) are consistently performed

in accordance with all applicable requirements. Thus, proposed

Sec. 145.201 would require that each repair station establish a quality

assurance system acceptable to the Administrator. A description of the

entire quality assurance system would be included in the proposed

repair station manual. Guidance on the establishment of effective

quality assurance systems would be provided in advisory material

published concurrently with this rule, if adopted.

The size of an acceptable quality assurance system would be based

on the repair station's size and type of operations. The FAA recognizes

that many certificated repair stations have few employees.

Consequently, the FAA would consider a repair station's size and

complexity and the repair station's

[[Page 33149]]

designation of persons who perform quality assurance functions in

reviewing a quality assurance system. For example, the FAA would permit

smaller repair stations to assign individuals to quality assurance on a

part-time basis.

Capability List

Currently, Sec. 145.11(a)(4) requires that applicants for a

propeller Class 2 rating or any accessory rating prepare a list, by

type or make, as applicable, of each propeller or accessory for which

the repair station seeks approval. Many repair stations use these lists

and the limits of their Operations Specifications as marketing tools

that describe their capabilities. One constraint related to this

practice is that revisions to the current capability list require FAA

approval, which makes timely revisions cumbersome in the dynamic

aviation maintenance marketing environment.

The FAA proposes to revise part 145 to provide for a capability

list for each repair station. The capability list would specify all

articles on which the repair station is capable of performing work; the

articles would be listed by make and model. The repair station's

Operations Specifications would continue to prescribe the ratings and

classes under which the repair station is approved to operate.

Under the proposal, prior to working on an article, a repair

station would be required to conduct a self-evaluation, described in

the quality assurance system in its repair station manual, to ensure

that the repair station has the required facilities, equipment,

materials, technical data, processes, housing, and trained personnel in

place to properly perform the work on the article. Self-evaluations of

this nature are consistent with other internal evaluation programs

currently encouraged by the FAA.

After the self-evaluation, the article would be added to the repair

station's capability list. Procedures would be defined in the repair

station manual to require the repair station to inform the FAA CHDO of

the revision to the capability list.

For example, if a repair station holds the proposed aircraft Class

1 rating and the repair station's Operations Specifications limit the

repair station to performing work on reciprocating engine-powered

aircraft, the repair station would not be able to add any turbine

engine-powered aircraft to its capability list without an FAA-approved

revision to its Operations Specifications. However, the repair station

would be able to add other reciprocating engine-powered aircraft to its

capability list after the capability list revision procedures in its

repair station manual are followed.

Contract Maintenance

Notwithstanding concerns expressed by certain industry groups

during the public meetings, contracting out maintenance under the

current regulations has proven safe for more than 40 years. In an

effort to harmonize part 145 with JAR 145, the FAA proposes to continue

permitting repair stations to contract out maintenance and alteration

of components of a type-certificated product as is permitted under

current Sec. 145.47. However, the proposal would permit any repair

station to contract out such work on any article for which it is rated

(other than a complete type-certificated product), provided certain

conditions are met. Current Sec. 145.47 includes equipment and material

requirements and a description of contract maintenance requirements.

Proposed Sec. 145.213 would include these current contract maintenance

requirements.

In addition, a list of those functions that a repair station would

be permitted to contract to an outside facility would be required to be

specified by the repair station in its manual under proposed

Sec. 145.207(h). Under that paragraph, the repair station would have to

list the names of those facilities to which it contracts work, along

with their certificates and ratings, if any. The repair station manual

would have to include procedures for qualifying and surveilling the

facilities. It would also have to include procedures to accept the

maintenance, preventive maintenance, or alterations performed by a

facility to which work was contracted.

The provisions of the repair station's quality control system

specified in proposed Sec. 145.201(a)(2) and Sec. 145.209(c)(2) would

require it to inspect articles and materials on which contract

maintenance was performed. This mandatory inspection process would

ensure that the requisite high level of safety is maintained when job

functions are contracted either to certificated or noncertificated

sources.

Current Sec. 145.47(c) states that a repair station may contract

maintenance and alteration of components of a type-certificated product

to a noncertificated source provided: (1) The repair station is the

manufacturer who originally manufactured the product for which it holds

a U.S. type certificate; (2) the contracted component is included as

part of the type-certificated product; (3) the component maintenance is

done by the original component manufacturer or its manufacturing

licensee; and (4) before the component is approved for return to

service, the repair station ensures that it is being approved for

return to service in accordance with the repair station's approved

quality control system.

Under the proposal, contracting to noncertificated sources would

not be restricted to type certificate holders. Proposed Sec. 145.213

would permit a certificated repair station to contract maintenance or

alteration of any article for which it is rated to a noncertificated

person provided the job function is contracted in accordance with

procedures set forth in the certificated repair station's approved

repair station manual.

In addition, the certificated repair station would be required to

supervise or otherwise remain directly in charge of a shop that

performs maintenance, preventive maintenance, or alterations. The term

``directly in charge'' is defined in proposed Sec. 145.3, Definition of

terms, and specifies that a person who is directly in charge need not

physically observe and direct each worker constantly but must be

available for consultation and decision on matters requiring

instruction or decision from higher authority than that of the persons

performing the work. This definition is taken from 14 CFR 121.378(b).

The certificated repair station would also be required to verify by

test and/or inspection that the job function has been satisfactorily

performed by the noncertificated person before the certificated repair

station approves the article for return to service.

The proposed limits on contracting maintenance would be that

contracting of complete, assembled, type-certificated products would

not be permitted and a certificated repair station also would not be

allowed to only provide approval for return to service for a product

after contract maintenance is performed, thereby prohibiting ``paper

only'' repair stations.

The proposed rule also would revise the list of certain job

functions in appendix A to part 145 that can be contracted out by a

certificated repair station. Current Sec. 145.47 requires that an

applicant for a repair station certificate must be equipped to perform

the functions listed in appendix A to part 145 that are appropriate to

the ratings sought. Current appendix A to part 145 describes the

equipment and material requirements for each of the ratings and classes

under which a repair station can receive approval to operate. Job

functions marked with an asterisk (*) in the current appendix are those

for which the repair station may obtain the services of a contractor in

lieu of having the appropriate equipment and

[[Page 33150]]

materials on the premises for the specific job function. Under the

proposal, Sec. 145.111 would require that the repair station be

equipped to perform the maintenance, preventive maintenance, or

alterations appropriate to the rating(s) held as prescribed by proposed

appendix A. Under the proposed rule, functions that could be contracted

out by a repair station to another facility (items currently marked

with an asterisk) would no longer be included in the appendix. The

proposed appendix would reflect the revisions and modifications to

repair station ratings and classes found in proposed Sec. 145.59;

however, all contracted maintenance functions would be required to be

listed in the proposed repair station manual.

The FAA specifically solicits comments to provisions in this notice

regarding contracting of work and especially to proposed provisions

regarding the contracting of work to noncertificated sources where the

certificated repair station has final approval for return to service

authority.

Job Functions

The proposed appendix A, Job Functions, includes many significant

revisions to current appendix A. In addition to removing those

functions for which a contractor may be used, the FAA has excluded much

of the advisory material in the proposed appendix. For example, the

proposed appendix would retain ``Repair and replace alloy members and

components,'' but this would not be followed by ``* * * such as tubes,

channels, cowlings, fittings, attach angles, etc.'' The proposed

appendix also would reduce current repetition by providing a list of

functions that apply to all classes under a rating at the beginning of

the rating's discussion. Therefore, subsequent class requirement

discussions would state, ``In addition to having the capability to

perform the appropriate functions as required for a Class `X' rating, a

repair station holding a Class `Y' or Class `Z' rating must have * *

*.'' The proposed appendix also adds new job functions for turbine

engines and nondestructive testing; however, the most significant

revision is the removal of functions that can be contracted out to

another facility. This proposed change takes an approach toward

contracting out that is similar to the one being developed by the JAA.

The FAA requests that, during the comment period, commenters

specifically address the equipment and material requirements for the

various repair station ratings as well as the deletion from appendix A

of those functions that may be contracted out by a repair station.

Based on such comments, the FAA may revise this notice to accommodate

specific comments.

Training Program

Current Secs. 121.375 and 135.433 require that each certificate

holder, under part 121, and pursuant to Sec. 135.411(a)(2),

respectively, or person performing maintenance or preventive

maintenance functions for these certificate holders, have a training

program. This training program must ensure that each person who

determines the adequacy of work performed is fully informed about

procedures, techniques, and new equipment in use, and is able to

perform all associated duties. Current Sec. 145.2(a) requires that

repair stations supporting operations under part 121 comply with the

provisions of current Sec. 121.375. Therefore, repair stations that now

perform maintenance or preventive maintenance for part 121 operators

are required to have a training program. In some cases, only a portion

of a repair station's personnel accomplish work for part 121 operators.

Consequently, only those individuals are included in the training

program.

Under the proposal, Sec. 145.159 would require that each repair

station establish and maintain a documented training program for all

employees who perform work under the repair station's ratings and

classes. The proposed training program would enhance aviation safety by

ensuring that each employee who works for the repair station is fully

capable of performing that work, and it would ensure a level of safety

equivalent to that of maintenance performed under part 121 or part 135.

Because the FAA recognizes that repair stations vary in size, the

repair station or any other organization such as a school or

manufacturer could provide the training, provided the program is

approved by the Administrator. The training program would be described

in the repair station manual as set forth in proposed Sec. 145.207(e).

The proposed training would be required to consist of initial and

recurrent training for aviation maintenance personnel, be based on each

individual's assignment, and ensure that each individual is capable of

performing the assigned task. A person who is certificated or rated to

perform particular duties, but is not currently assigned to perform

those duties at the repair station, would not be required to

participate in recurrent training for all of the tasks for which the

person is certificated or rated until such time as that person is

assigned to those duties.

Because repair stations' activities vary greatly, information about

the specific training needed to satisfy the requirements of the

proposed rule would be published in advisory material that would be

issued with this rulemaking.

Line Station Maintenance

Current FAA policy permits an operator certificated under part 121

or part 135 to contract line maintenance to a repair station located in

the United States. A certificated repair station with a limited rating

for line maintenance may perform such line maintenance, provided that

the repair station holds the appropriate ratings and the operator's

particular aircraft are identified in that repair station's Operations

Specifications.

Many repair stations located at airports have requested that they

be permitted to perform line maintenance for part 121 or part 135

operators without meeting all of the requirements of part 145.

Currently, to receive the appropriate ratings or have an operator's

aircraft added to the repair station's Operations Specifications, the

repair station must meet the current part 145 requirements that exceed

those necessary to perform the line maintenance. Proposed Sec. 145.7(e)

would permit a repair station to perform line maintenance functions for

an operator without meeting all of the part 145 requirements necessary

to either obtain a rating or add an aircraft to the repair station's

Operations Specifications. Repair stations could provide this service

for operators certificated under part 121 or part 135 or for operators

of U.S.-registered aircraft under part 129. Consistent with current

practice, a repair station's Operations Specifications would state the

job functions performed as line maintenance for each operator. The job

functions would be based on the aircraft operator's manual or approved

program. Also, the repair station would be required to have the

necessary equipment, trained personnel, and technical data to perform

the line maintenance.

Recordkeeping and Reporting Requirements

Currently, Sec. 145.61 requires each repair station to maintain

adequate records of all maintenance, preventive maintenance, or

alterations performed. The records must include the name of the

certificated mechanic or repairman who performed or supervised the work

and the name of the individual who inspected the work. Repair stations

are required to retain these records for at

[[Page 33151]]

least 2 years after the work is completed.

The FAA proposes to revise the current recordkeeping and reporting

requirements. Proposed Sec. 145.217 would require a repair station's

records and reports to include the make, model, identification number,

and serial number (when applicable) of the aircraft, airframe, aircraft

engine, propeller, appliance, or component part of the article worked

on, and a copy of the maintenance release. The repair station would be

permitted to use as the maintenance release the record that it

completes to comply with current Secs. 43.9 and 43.11.

A repair station would continue to be required to retain records

for 2 years. Records could be retained in the form of actual work

documents or copies thereof, or by an automated data processing system

acceptable to the Administrator.

The record retention period would be based on the date that article

was approved for return to service as opposed to the date maintenance,

preventive maintenance, or alteration was completed. In some instances,

different work may have been completed on the same article on different

dates before the article is approved for return to service. Therefore,

the date an article is approved for return to service would be easier

for a repair station to monitor.

Under current industry practice, the owner or operator of an

aircraft, airframe, aircraft engine, propeller, appliance, component,

or part on which work is performed receives the maintenance release.

This practice would continue and be reflected in proposed

Sec. 145.217(b). The proposed rule specifies that the maintenance

release would be required to be retrievable in English.

Repair Stations Located Outside the United States

As can be seen from the above discussion, the thrust of this

proposal is to reduce the differences between the treatment of

``domestic'' and ``foreign'' repair stations. Many of the requirements

that would be imposed in this rulemaking are designed to ensure that

maintenance functions are performed safely. For example, as discussed

below, supervisors of any maintenance function at a repair station,

regardless of where it is located, would be required to have at least

18 months of practical experience in the maintenance function the

individual is supervising.

Nevertheless, we are mindful of concerns by some that repair

stations located outside the United States pose special issues with

respect to oversight and safety. Therefore, the FAA is considering the

establishment of further measures to ensure that the proposed repair

station requirements are implemented safely and effectively. For

example, the FAA is considering authorizing an advisory panel or some

other partnership to provide feedback to the Administrator on the

effects of our rules on the safe operation of repair stations. Such a

panel would provide a forum in which industry and labor representatives

could discuss concerns and relay information on the real world effects

of the repair station rules, including identifying any deficiencies or

inequities.

Comments are invited on this or any other idea to ensure the

continuing safety and effectiveness of the proposed rule. The FAA will

determine, at the time a Final Rule is adopted, whether an advisory

panel, or some other plan recommended by commenters would be the best

method of achieving this goal.

Section-by-Section Analysis

Special Federal Aviation Regulation No. 36

The proposal would revise paragraph 2(c) of this regulation by

replacing the reference to current Sec. 145.51 with a reference to

proposed Sec. 145.215(b)(2), and by replacing the references to

``domestic repair station certificate under 14 CFR part 145'' with

``repair station certificate under 14 CFR part 145 that is located in

the United States''.

Section 11.101 OMB Control Numbers Assigned Pursuant to the Paperwork

Reduction Act

This section would be revised by replacing the reference to current

Sec. 145.63 with a reference to proposed Sec. 145.219.

Section 91.411 Altimeter System and Altitude Reporting Equipment Tests

and Inspections

Paragraph (b)(2)(iii) would be revised by replacing ``limited

rating'' with ``specialized service rating''. Paragraph (b)(2)(iv)

would be revised by replacing ``airframe rating'' with ``aircraft

rating''. Paragraph (b)(2)(v), which refers to a limited rating for

manufacturers, would be deleted.

Section 91.413 ATC Transponder Tests and Inspections

Paragraphs (c)(1)(i) and (c)(1)(ii) would be revised by changing

the term ``radio'' to ``avionics'' and by replacing the reference to

``Class III'' with ``Class 3'' in paragraph (c)(1)(i). Paragraph

(c)(1)(iii) would be revised by replacing the reference to ``limited

rating'' with ``specialized service rating''. Paragraph (c)(1)(iv),

which refers to a limited rating for manufacturers, would be deleted.

Part 91, Appendix A Category II Operations: Manual, Instruments,

Equipment, and Maintenance

Paragraph (4)(b)(1)(ii) would be revised by changing the term

``radio'' to ``avionics''. Paragraph 4(b)(1)(iii), which refers to

ratings issued under subpart D of part 145 (limited ratings for

manufacturers), would be deleted.

Section 121.378 Certificate Requirements

This section would be revised by replacing ``repair stations

certificated under the provisions of subpart C of part 145'' in

paragraph (a) with ``a certificated repair station that is located

outside the United States'' and by changing the reference to

``alteration'', the singular, to ``alterations'', the plural.

Section 121.709 Airworthiness Release or Aircraft Log Entry

This section would be revised by replacing ``a repair station

certificated under the provisions of subpart C of part 145'' in the

concluding text of paragraph (b) with ``a certificated repair station

that is located outside the United States''.

Section 135.435 Certificate Requirements

This section would be revised by replacing ``repair stations

certificated under the provisions of subpart C of part 145'' in

paragraph (a) with ``a certificated repair station that is located

outside the United States''.

Section 135.443 Airworthiness Release or Aircraft Maintenance Log

Entry

This section would be revised by replacing ``a repair station

certificated under the provisions of subpart C of part 145'' in the

concluding text of paragraph (b) with ``a certificated repair station

that is located outside the United States''.

Subpart A General

Section 145.1 Applicability

The proposed section is based on current Sec. 145.1 and describes

the applicability of new part 145 with respect to obtaining repair

station certificates and the general rules under which certificated

repair stations must operate. Proposed Sec. 145.1 would revise current

Sec. 145.1(a) by adding the term ``preventive maintenance'' and by

changing the current reference pertaining to ``airframes, powerplants,

[[Page 33152]]

propellers, and appliances'' to ``any aircraft, airframe, aircraft

engine, propeller, appliance, component, or part thereof''. Current

Sec. 145.1(b) and (c) would be deleted because it addresses foreign

repair stations and manufacturers' maintenance facilities,

respectively. As noted previously, the FAA is proposing, for the most

part, to remove the distinction between domestic and foreign repair

stations and to eliminate the limited ratings for manufacturers. The

proposed changes differ in scope from the applicability section of

current part 43 (maintenance rules), in that repair station privileges

would be expanded to include foreign-manufactured and -certificated

equipment, as well as equipment that has been issued an experimental

airworthiness certificate.

Section 145.2 Certificate Issued to a Person in a Country Outside the

United States; Certificate Issued to a Person in a Country With Which

the U.S. Has a Bilateral Aviation Safety Agreement

As of the issuance of this notice, the U.S. is in the process of

signing bilateral aviation safety agreements (BASAs) with several

foreign countries; those agreements cover multiple areas of FAA safety

regulation, including maintenance to be performed on U.S. registered

aircraft and parts thereof. Consistent with those agreements, the FAA

will be establishing maintenance implementation procedures (MIPs) with

the national (civil) aviation authorities (NAAs) of the respective

countries. Each BASA and MIP will provide that the FAA may issue a part

145 certificate to an applicant located in the country with which the

U.S. has the BASA, based on a certification from the NAA of that

country that the applicant complies with part 145. Each MIP will

provide the procedures whereby that certification can be made. New

Sec. 145.2(b) is proposed to incorporate that process into part 145; in

this regard, it would parallel the process in 14 CFR 21.29 for the

certification of aircraft and other type certificated products.

New Sec. 145.2(a) would state, generally, that the FAA may issue a

part 145 certificate to an applicant in a foreign country if the FAA

finds that the applicant complies with part 145. While that general

proposition obviously would not be a change from the existing rule, it

is included to clarify that the certification by the foreign authority

in proposed paragraph (b) is that the applicant complies with part 145.

Thus, the certification in paragraph (b) could be based on a finding

that the applicant complies with the repair station requirements of the

foreign country, plus all additional requirements necessary to

establish compliance with part 145.

Section 145.3 Definition of Terms

For purposes of this part, the proposed section would define:

accountable manager, actual work documents, approve for return to

service, approved data, article, certificated, CHDO, composite,

computer system, consortium, directly in charge, facility, housing,

maintenance release, overhauled, and signature.

Section 145.5 Certificate and Operations Specifications Requirements

The proposed section would retain the requirement found in current

Sec. 145.3 that no person may operate as a certificated repair station

without, or in violation of, a repair station certificate.

Specifically, it would state that a repair station may perform work

only for which it is rated within the limitations of its Operations

Specifications. Proposed paragraph (d) specifies the contents of the

Operations Specifications that would be issued to each certificated

repair station. The contents would include the repair station's

certificate number; class ratings; limited ratings, to include makes,

models, or parts; specialized service ratings, to include the

specification used; the air carrier's geographic authorization, for

repair stations located outside of the United States; and any other

items the Administrator may require or allow to meet a particular

situation.

Proposed Sec. 145.5 would revise the requirement found in current

Sec. 145.19 that a repair station display its repair station

certificate at a place normally accessible to the public and that is

not obscured. The proposal would require only that a repair station

have its certificate available, but not necessarily visible, for

inspection by the public. A repair station would continue to be

required to have its certificate available on the premises for

inspection by the Administrator.

Section 145.7 Performance of Maintenance, Preventive Maintenance,

Alterations, and Required Inspections for Certificate Holders Under

Parts 121, 125, and 135, and for Foreign Air Carriers or Foreign

Persons Operating a U.S.-Registered Aircraft in Common Carriage Under

Part 129

The proposed section would combine the requirements of current

Secs. 145.2 and 145.73 and describe special conditions related to the

issuance of a repair station certificate. Proposed paragraph (a)(1)

would retain the current requirements for a repair station performing

maintenance, preventive maintenance, or alterations for a part 121

operator having a continuous airworthiness maintenance program to

conform with the provisions of those parts pertaining to such a

program. The proposal, however, would revise the current rule by

specifically listing those sections for which compliance is required.

Proposed paragraph (a)(2) would revise the current rule by requiring a

certificated repair station performing work for an air carrier or

commercial operator having a continuous airworthiness maintenance

program under part 135 to comply with the sections of that chapter

pertaining to the performance of that work.

Proposed paragraph (b) would retain the current requirement that

work performed by a repair station for an air carrier or commercial

operator having a continuous airworthiness maintenance program be

performed in accordance with the air carrier's or commercial operator's

manual.

Proposed paragraph (c) retains the requirements of current

Sec. 145.2(b) relating to the performance of inspections on airplanes

operated pursuant to part 125.

Proposed paragraph (d) would establish a new requirement that a

repair station performing work for any person operating an aircraft

pursuant to part 129 perform that work in accordance with a program

approved by the Administrator.

Proposed paragraph (e) would establish new provisions that would

permit a repair station located at a line station for an air carrier

certificated under part 121 or part 135, or at a line station for a

foreign air carrier or foreign person operating a U.S.-registered

aircraft in common carriage, to perform, under certain circumstances,

line maintenance on any aircraft of that air carrier or person.

Section 145.9 Advertising

The proposed section includes the requirement of current Sec. 145.3

prohibiting a repair station from advertising as a certificated repair

station until the issuance of a certificate. It also includes the

requirements of current Sec. 145.25 specifying that the advertisement

clearly state the repair station's certificate number. The proposed

section also adds an additional requirement that prohibits a repair

station from making false statements, either orally or in writing,

designed to mislead any person.

Section 145.11 Deviation Authority

Current regulations pertaining to manufacturers and some classes of

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operators permit them to apply for a deviation from particular

requirements of the FAA regulations. Similar provisions do not

currently exist for certificated repair stations. The proposed section

would establish new procedures for repair stations similar to those

used by manufacturers and operators to apply for deviation authority

from the regulations. The proposed regulations permit a repair station

to apply for a letter of deviation from any sections of part 145.

Consistency in granting deviation authority would be enhanced by the

provision that only the Associate Administrator for Aviation Standards

could issue letters of deviation authority.

Subpart B Certification

Section 145.51 Application for Certificate

This proposed section is based on current Secs. 145.11, 145.13, and

145.71. Proposed paragraph (a) is similar to current application

requirements but separates the application requirements for the initial

issuance of a certificate or rating from the requirements for a change

or renewal of a certificate. Applicants for a change or renewal of a

certificate would be required to provide only that information

necessary to substantiate the change or renewal, and such applications

would be addressed in proposed Sec. 145.51(e).

Additionally, the proposal revises the list of items that an

applicant would be required to submit to the FAA with the application.

The proposal would require that the applicant submit a copy of the

repair station's manual to the Administrator for approval. (Current

Sec. 145.11 refers to a repair station's IPM.) The proposal also would

require that the applicant submit a list by type, make, or model, as

appropriate, of the aircraft, airframe, aircraft engine, propeller,

appliance, component, or part thereof for which an application is made.

Current Sec. 145.11 requires this information on applications only for

a propeller rating (Class 2) or any accessory rating (Class 1, 2, or

3). Applicants also would be required to include a statement signed by

the accountable manager (as defined in proposed Sec. 145.3) that the

procedures described in the repair station manual are in place and meet

the requirements of the applicable regulations. A list of maintenance

functions performed under contract by another repair facility would

continue to be required and to be included in the proposed repair

station manual. Provisions of current Sec. 145.13, which require an

applicant for a foreign repair station certificate to submit an

organizational chart containing the names and titles of managing and

supervisory personnel and a description of the repair station's

facilities, would be expanded to apply to all applicants for a repair

station certificate; however, submission of a suitably bound brochure

and photographs of the facilities would no longer be required of any

applicant. The proposal also would no longer require duplicate copies

of all required information. For example, under the proposal, only one

copy of the applicant's repair station manual would be required to be

submitted.

Proposed paragraph (b) establishes a new requirement that the

equipment, facilities, and housing required for the certificate and

rating be in place at the time of certification by the Administrator.

Current Secs. 121.153(c) and 135.25(d) permit operators to use

foreign-registered civil aircraft. Current Sec. 43.1(a) prescribes the

rules under which these aircraft must be maintained. Proposed

Sec. 145.51(c) expands the scope of current Sec. 145.71 by permitting

an applicant located outside the United States to obtain a repair

station certificate if it maintains foreign-registered aircraft

operated under the provisions of part 121 or part 135, or aircraft

engines, propellers, appliances, components, or parts thereof for use

on such aircraft.

Proposed Sec. 145.51(c)(2) retains the current requirement that the

applicant for a repair station certificate located outside the United

States provide evidence that the fee prescribed by the Administrator

has been paid; however, the current reference to part 187 has been

deleted. Proposed Sec. 145.51(c)(3) would codify the FAA's existing

practice of requiring that a repair station located outside the United

States complete an application for a repair station certificate in

English.

Under current regulations, a repair station that consists of

numerous units and partners functioning as a single entity with regard

to quality control and quality assurance (i.e., a consortium) is not

permitted to operate under a single repair station certificate, unless

it is granted an exemption from current Sec. 145.35. Airbus Industrie

(Airbus) is an example of such a consortium. Airbus holds an exemption

from current Sec. 145.35 to the extent necessary to permit the

production units of the members and associated partners of the Airbus

consortium to be collectively certificated as a U.S. foreign repair

station to support maintenance of U.S.-registered A300, A310, A320,

A321, A330, and A340 series aircraft. In its petition for exemption,

Airbus contended that the exemption was necessary to permit it to

function as an FAA-approved repair station without having a central

maintenance facility. In granting the exemption, the FAA stated that a

properly structured quality system, operating in a number of facilities

under the direct responsibility of a central quality manager, using

personnel that are properly trained, qualified, and authorized, and

using a uniform system of documentation, can provide an acceptable

substitute for the requirements of Sec. 145.35. The exemption was

predicated on each Airbus production unit demonstrating its compliance

with the applicable housing and facility requirements of the

regulations. To exercise its enforcement obligations, the FAA required

that Airbus retain certificate responsibility for the implementation

and revision (as necessary) of the manual and the quality control

procedures used by the Airbus production units and partners. This was

achieved through the certification of the Airbus consortium as a

foreign repair station. The maintenance, preventive maintenance, and

alteration that may be performed in accordance with the Airbus

exemption is limited to that necessary to support the operation of

U.S.-registered airplanes. To preclude the requirements to obtain an

exemption for similar operations in the future, proposed Sec. 145.51(d)

would permit all consortiums that function as a single entity with

regard to quality control and quality assurance functions, that hold an

approved type certificate, and that perform maintenance, preventive

maintenance, or alterations of that type-certificated product and

components thereof to apply for a repair station certificate under this

section.

Section 145.53 Issue of Certificate

The proposed section is based on current Secs. 145.11(b) and

145.71, which address the issuance of a repair station certificate. The

section retains current regulatory language with no substantive

changes.

Section 145.55 Duration and Renewal of Certificate

This section is similar to current Secs. 145.15 and 145.17 but

deletes the current provision in Sec. 145.17(b) that a certificate or

rating for a repair station located outside of the United States

expires at the end of 12 months after the date on which it was issued.

Instead, the certificate or rating will expire after 24 months.

Proposed paragraphs (a) and (b) retain current certificate duration

requirements. The conditions for a

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return of a certificate are described in paragraph (c).

Proposed paragraph (d) modifies the current requirement for

certificate renewal by specifying that a repair station located outside

the United States must submit its request for renewal no later than 90

days before its current certificate expires. Current Sec. 145.15(c)

permits this application to be made within 30 days of the current

certificate's expiration.

Section 145.57 Amendment to or Transfer of Certificate

This section is based on current Sec. 145.15 and would continue to

require that a repair station desiring to amend, revise, or add a new

rating to its certificate apply on a form and in a manner prescribed by

the Administrator. The current prohibition on the transfer of repair

station certificate privileges upon conveyance of the repair station

would be retained in proposed paragraph (b). Whereas current

Sec. 145.15(b) states that, in the event of a sale or transfer of a

repair station's assets, the new owner must apply for an amended

certificate, proposed Sec. 145.57(b) clarifies the substance of the

requirement by stating explicitly that the privileges of the

certificate cannot be transferred if the repair station is sold,

leased, or otherwise conveyed. Accordingly, to obtain a repair station

certificate, a new owner or transferee of a repair station's assets

would have to apply for a new certificate under the provision of

proposed Sec. 145.51.

Section 145.59 Ratings and Classes

The proposed section would completely revise the current system of

ratings and classes specified in current Secs. 145.31 and 145.33. This

revised system of ratings and classes is described earlier in this

document under the heading ``Ratings and classes.''

Section 145.61 Transition to New System of Ratings

The proposed section describes the FAA's procedure for phasing in

the new system of ratings and classes specified in proposed

Sec. 145.59. The manner in which the transition to this new system

would be accomplished is described earlier in this document under the

heading ``Implementation of the proposed ratings and classes.''

Subpart C Facilities, Equipment, Materials, and Housing

Section 145.101 General

This section is based on current Sec. 145.55 (Maintenance of

personnel, facilities, equipment, and materials) with no substantive

differences.

Section 145.103 Facility and Housing Requirements

Proposed Sec. 145.103(a) is based on current Sec. 145.35 and

retains many of the general facility and housing requirements currently

found in that section for an applicant of a repair station certificate.

The proposal would revise the current rule by expanding the

applicability of these requirements to all repair stations, as opposed

to applicants for repair station certificates or ratings. Proposed

paragraph (a) retains the requirements of current Sec. 145.35. It

eliminates the current specific requirement of Sec. 145.35(b)(3) to

segregate machines and equipment whenever fabric work is done in an

area where there is grease and oil. This type of work is not performed

as often as in the past, and more general requirements to have

facilities for the proper protection of parts and subassemblies, and

segregation of certain operations, are included in the proposal.

Proposed Sec. 145.103(b) describes the facility and housing

requirements currently found in Sec. 145.37; however, it would

establish new requirements for repair stations that perform

maintenance, preventive maintenance, or alterations on articles

constructed of composite materials and repair stations with the

proposed computer systems rating.

Proposed Sec. 145.103(b)(1) would require housing only for the

largest type and model of aircraft on which a repair station performs

maintenance, preventive maintenance, or alteration. For example, if a

repair station with a proposed aircraft Class 3 rating is authorized to

work only on Boeing 737s, that repair station would be required to

provide housing for at least one Boeing 737, even though larger

aircraft, such as a Boeing 747, could be included in an aircraft Class

3 rating.

Current Sec. 145.37(b) addresses the use of permanent work docks

and the performance of work outside, where permitted by climatic

conditions. During preparation of this proposal, the FAA considered

eliminating that portion of Sec. 145.37(b) that specifically permits

the use of permanent work docks. The FAA contends that the elimination

of this provision would simplify the requirements for all repair

stations and help achieve uniform interpretation of the regulations.

The FAA also is concerned that some geographical areas exist that are

not truly free of rain, sand, dust, or some other environmental element

or are affected by high or low temperatures that could have an adverse

effect on worker efficiency during the performance of maintenance by

the repair station. Repair station work, such as the performance of a

detailed visual inspection or certain nondestructive inspection, of an

airframe must be accomplished in a environment free of adverse

environmental conditions to ensure the work process is not negatively

affected by such conditions. In the interest of safety, the FAA

contends that the elimination of the work dock provisions would address

current situations in which some repair facilities may not provide

adequate protection from environmental elements for aircraft,

equipment, or personnel as required by Sec. 145.35(a).

However, the FAA notes that currently available data do not permit

the FAA to determine the number of repair stations that would be

affected or to quantify the potential costs to the repair station

industry if the use of work docks were no longer permitted. Therefore,

provisions permitting the use of work docks have been retained in this

proposal.

During the comment period, the FAA requests that the public

specifically address the potential costs that would be incurred by the

repair station industry if provisions for permitting work outside were

eliminated. In addition, the FAA is requesting that the comments

submitted include a detailed discussion of the potential safety

benefits that could be realized if such provisions were eliminated.

Based on the input received and the data presented during the comment

period, the FAA may eliminate the work dock provisions in the final

rule.

Proposed Sec. 145.103(b)(3) establishes new provisions that would

require a repair station that performs maintenance, preventive

maintenance, or alterations on any article of composite construction to

meet acceptable process requirements. These process requirements would

be based on the manufacturer's recommendations or other processes

acceptable to the Administrator.

Proposed Sec. 145.103 (b)(4) through (b)(7) revises current

requirements so that they are applicable to the proposed system of

certificates and ratings. Proposed Sec. 145.103 (b)(4) and (b)(6) is

based on current Sec. 145.37 (c) and (e) with no substantive

differences. Proposed Sec. 145.103(b)(5) would require repair stations

with a propeller rating to have suitable stands, racks, and fixtures,

not only for the proper storage of the propellers, but also for the

performance of work on these articles. Proposed Sec. 145.103(b)(7)

would establish

[[Page 33155]]

requirements for holders of an avionics, instrument, or computer system

rating by requiring those holders to have a shop and assembly area that

meets the standards for environmental control and protection from

contaminants specified by the equipment or system manufacturer.

Proposed Sec. 145.103(b)(8) specifically would establish a

requirement for a repair station to meet any special facilities

requirements determined by the manufacturer and approved by the

Administrator for an article or system on which maintenance, preventive

maintenance, or alteration is performed.

Currently, Sec. 145.51(d) permits a repair station to maintain and

alter any article for which it is rated at a place other than its fixed

location if certain conditions are met. Proposed Sec. 145.103(c) would

specify that a repair station is permitted to perform certain job

functions on an aircraft at a place other than its fixed location

because of a special circumstance as determined by the Administrator

(e.g., an aircraft on the ground at an isolated airport requiring

repairs to allow it to be flown safely to the operator's main base, a

repair station, or in preparation for a ferry flight). The proposed

repair station manual would be required to describe the procedures for

the performance of work at a place other than the repair station's

fixed location.

Section 145.105 Change of Location, Housing, or Facilities

The proposed section is based on current Sec. 145.21 and specifies

the types of changes requiring approval by the Administrator. The

proposal would include the current requirement that any change to the

location or facilities of a repair station be approved in advance. The

proposal would specifically indicate that no operation by a repair

station at a new location be authorized until approved.

Section 145.107 Satellite Repair Stations

Under current Sec. 145.51(d), a domestic repair station may

maintain or alter any article for which it is rated at a place other

than the repair station, provided certain conditions are met. This work

is normally performed on a case-by-case or as-needed basis. Under the

proposal, repair stations would be permitted to establish satellite

repair stations to perform work on a permanent basis at a place other

than the repair station's primary facility. Proposed Sec. 145.107(a)

would define ``satellite repair station'' and specify the requirements

for the certification of these facilities. A satellite repair station

would continue to be considered a separate repair station and would be

required to meet the requirements (personnel, facilities, housing,

etc.) for each rating it holds. A satellite repair station also would

be required to prepare a manual consistent with the manual of the

parent repair station. The manual would be required to be approved by

the FAA CHDO. Proposed paragraph (b) would permit the cross-utilization

of personnel and equipment from the parent repair station necessary to

perform maintenance, preventive maintenance, or alterations. However,

the FAA could specify when equipment and personnel could not be cross-

utilized.

Additionally, proposed paragraphs (c) and (d) would codify the

current practice that a repair station located within the United States

would not be permitted to have a satellite repair station located

outside the United States and that a repair station located outside the

United States would not be permitted to have a satellite repair station

located within the United States.

Section 145.109 Maintenance, Preventive Maintenance, and Alterations

Conducted at Satellite Repair Stations

This proposed section would specify the conditions under which a

repair station may perform work at a satellite repair station rather

than at the repair station's primary facility and would establish

inspection personnel requirements for the facility. The proposed

section is based on Sec. 141.91, which prescribes requirements for

pilot school satellite bases.

Section 145.111 Equipment and Material Requirements

The proposed requirements are based on those requirements found in

current Secs. 145.47 and 145.49. The proposed section sets forth the

requirements that would apply to all repair stations and those

additional requirements that would apply to repair stations with

specialized service ratings and those with ratings other than

specialized service ratings. Additionally, the proposed regulation sets

forth requirements for certificated repair stations, whereas the

current regulation sets forth requirements for an applicant for a

domestic repair station certificate.

The proposed section retains the requirements of current

Secs. 145.47(a) and (b), and 145.49(a); however, the proposal would

require that tools used to accomplish work be those recommended by the

manufacturer or equivalent to the manufacturer's recommendation and

acceptable to the Administrator. The proposal also would require tools

used for product acceptance and/or for making a finding of

airworthiness be calibrated to a standard acceptable to the

Administrator.

The proposal would delete the specific equipment requirements for

an applicant for a rating for specialized services or techniques issued

under the current regulation; however, under the proposed rule, a

certificated repair station with a specialized service rating would be

required to have the appropriate equipment, materials, and technical

data prescribed and approved for performing work under that rating.

Subpart D Personnel

The FAA proposes to organize all part 145 repair station personnel

requirements into a separate subpart of part 145. The proposed subpart

would include current personnel requirements and new requirements

relating to training, personnel records, designation of an accountable

manager, and the recommendation of persons for certification as

repairmen. Personnel requirements for repair stations located within

and outside the United States would be standardized; however, repair

stations located outside the United States would continue to be able to

employ persons not certificated under part 65.

Section 145.151 Personnel Requirements

This proposed section for personnel requirements is based on

current Secs. 145.39 and 145.75 but does not include requirements for

supervisory and inspection personnel. These requirements are found in

proposed Sec. 145.153.

Proposed Sec. 145.151 would establish the same general personnel

requirements for repair stations located within and outside the United

States. It would ensure that personnel employed at any repair station,

regardless of its location, are competent to perform assigned tasks.

Proposed Sec. 141.51 would include a new requirement that each

certificated repair station designate an individual as the accountable

manager. The section would continue to require that a repair station

have a sufficient number of personnel to perform the work for which it

is rated. The proposed section would specify that it is applicable to

all repair stations, whereas current equivalent sections apply to

applicants for certificates. The proposal deletes language in current

Sec. 145.39(a) requiring officials of the station to consider carefully

the justifications and abilities of their employees. This current

provision is addressed by the proposed

[[Page 33156]]

training requirements. Language in current Sec. 145.39(b) requiring an

applicant to have enough properly qualified employees to keep up with

the volume of work in progress is addressed in proposed

Sec. 145.151(a)(2).

Section 145.153 Supervisory and Inspection Personnel Requirements

This proposed section is based on the supervisory and inspection

personnel requirements found in current Secs. 145.39 and 145.75. The

proposal would retain the requirements of these sections, codify

minimum practical experience and training requirements for supervisory

and inspection personnel employed at repair stations located outside

the United States, and expand the Administrator's ability to determine

the competence of all supervisory and inspection personnel.

Proposed paragraphs (a), (b), and (c) are based on current

Sec. 145.39(c). These sections would apply to all repair stations.

Proposed paragraph (d) is based on current Sec. 145.39(d). It would

contain identical requirements for supervisory and inspection personnel

at repair stations located within and outside the United States, with

the exception that personnel at repair stations located outside the

United States would not be required to be certificated under part 65.

Proposed paragraph (d)(1) retains the current requirement that only

those individuals who supervise a maintenance function in a repair

station located in the United States be certificated as a mechanic or

repairman under part 65. Although the FAA will not require the

certification of supervisory personnel at repair stations outside the

United States, proposed paragraphs (d)(2) and (d)(3) would apply the

practical experience and training requirements currently found in

Sec. 145.39(d) to all supervisory personnel regardless of where they

perform their duties. Proposed paragraph (d)(2) would require all

individuals who supervise a maintenance function at a repair station to

have at least 18 months of practical experience in the maintenance

function the individual is supervising. Proposed paragraph (d)(3) would

require all supervisory personnel to be adequately trained on the

maintenance of the article on which work is performed and to be

familiar with the procedures, practices, inspection methods, materials,

tools, and equipment used in the maintenance, preventive maintenance,

or alterations for which the repair station is rated.

The current prohibition found in Sec. 145.39(d) on the use of

experience gained as an apprentice or student mechanic has been deleted

because the FAA has determined that such experience is acceptable. In

addition, the current requirement that at least one of the persons

directly in charge of the maintenance functions of a repair station

with an airframe rating must have had experience in approving aircraft

for return to service after 100-hour, annual, and progressive

inspections has been broadened. Current language specifying inspection

types has been replaced by a reference to the inspections required by

current Sec. 91.409.

Proposed paragraph (e) is based on current Sec. 145.39(d) and would

apply to all repair stations with no substantive changes.

Proposed Sec. 145.153(f) imposes additional requirements on repair

stations located outside the United States. These requirements are

based on the requirements for supervisory and inspection personnel at

foreign repair stations specified in current Sec. 145.75. Repair

stations located outside the United States would be required to possess

a sufficient number of supervisors and inspectors who understand FAA

regulations, FAA Airworthiness Directives, and the manufacturers'

maintenance and service instructions for the articles on which the

repair station performs work. These personnel would also be required to

understand, read, and write the English language.

The changes proposed in paragraphs (d)(2) and (d)(3), together with

the provisions of proposed paragraph (f), would ensure that repair

stations located outside the United States possess a sufficient number

of supervisory and inspection personnel who are as well qualified as

their domestic counterparts certificated under part 65.

Current references to determining the abilities of supervisory

personnel by either the repair station or the Administrator have been

included and expanded on in proposed paragraph (g). Current

Sec. 145.39(c) provides that the Administrator may inspect the

employment and experience records of all supervisory personnel and also

may determine further the abilities of supervisors by administering a

personal test; however, the current regulation does not provide for the

evaluation of inspection personnel located at a repair station in the

United States through use of a personal test. In addition to providing

that the Administrator may review the employment and experience records

of supervisors and inspection personnel, proposed Sec. 145.153(g) would

permit the Administrator to use oral or practical tests to evaluate the

ability of supervisory and of inspection personnel to perform the tasks

for which they are assigned. The procedures the FAA would use to

evaluate the technical competency of all repair station personnel would

ensure that they possess a uniform level of competency, regardless of

individual certification requirements.

Section 145.155 Recommendation of Persons for Certification as

Repairmen

The proposal is based on current Sec. 145.41; however, the proposal

would require a repair station to recommend a sufficient number of

repairmen to meet all applicable requirements of this part if the

repair station chooses to use repairmen to satisfy these requirements.

The current rule requires only the recommendation of at least one

repairman. The proposal would delete the provisions of current

Sec. 145.41(b), which require that each person recommended must be at

or above the level of shop foreman or department head or be responsible

for supervising the work performed by the repair station, and would

permit a repair station to recommend any employee who meets the

requirements of current Sec. 65.101 for certification as a repairman.

The FAA has decided that this proposal would recognize the level of

professional expertise of maintenance personnel currently employed at

repair stations. The proposal also would enable repair stations to be

more flexible in their hiring and placement practices. This proposal is

consistent with current Sec. 65.101, which does not require that an

individual be employed in a supervisory position at a repair station to

meet the eligibility requirements for a repairman certificate.

Consistent with proposed Sec. 145.153(g), proposed Sec. 145.155(b)

also would permit the Administrator to evaluate any repairman's ability

by inspecting employment and experience records and/or by administering

an oral or practical test.

Section 145.157 Records of Management, Supervisory, and Inspection

Personnel

This proposed section is based on current Sec. 145.43. The FAA

would continue to require a repair station to retain a roster of

supervisory (including management) personnel and inspection personnel.

Proposed paragraph (a)(3) would establish a new requirement for a

repair station to retain a roster of those certificated personnel

authorized to sign a maintenance release for approval for return to

service of an altered or repaired article.

[[Page 33157]]

The proposal would retain current requirements relating to the

retention of information indicating compliance with experience

requirements; however, the record of total years of experience for an

individual would not need to pertain solely to the type of work the

individual is performing but only to maintenance work in general. The

proposal would modify the current rule by requiring that these rosters

be kept current but would not list the specific instances under which

they would be required to be modified. Although the proposal does not

retain the language of current Sec. 145.43(d), these records would

continue to be subject to inspection by the Administrator, as proposed

in Sec. 145.221. Because records would be required to be maintained for

all management personnel, the language of current Sec. 145.43(e) has

not been retained.

Section 145.159 Training Requirements

This section would create a new requirement for each certificated

repair station to establish a training program approved by the

Administrator that consists of initial and recurrent training for

employees assigned to perform maintenance, preventive maintenance, or

alteration job functions. The proposal would require that records of

this training be documented by the repair station in a form acceptable

to the Administrator and that these records be retained for the

duration of each individual's employment.

Subpart E Operating Rules

Section 145.201 Quality Assurance and Quality Control Systems

This proposed section is based on certain requirements in current

Secs. 145.45, 145.57, and 145.105. Proposed Sec. 145.201(a)(1) would

set forth a new requirement for a repair station to establish a quality

assurance system. Section 145.201(a)(2) would continue to require a

repair station to have a quality control and inspection system but

would expand the scope of these systems to include the quality control

of any work performed by a contractor. The proposal also would require

these systems to be described in the repair station's manual.

Proposed Sec. 145.201(b) continues to require repair stations to

perform maintenance and alterations in accordance with part 43, which

includes the applicable provisions of an approved maintenance program.

The proposal also expands the scope of current Sec. 145.57 to include

preventive maintenance.

Current Sec. 145.57(a) requires that each repair station maintain,

in current condition, all manufacturers' maintenance manuals,

instructions, and service bulletins that relate to the articles that it

maintains or alters. To standardize language relating to aviation

maintenance, the FAA proposes in paragraph (c) to replace the term

``instructions'' with ``Instructions for Continued Airworthiness''.

Also, the FAA has determined that, because Airworthiness Directives

(ADs) disseminate critical information about aviation safety, repair

stations should possess all ADs that apply to an article on which that

repair station performs maintenance, preventive maintenance, or

alterations. Therefore, in proposed Sec. 145.201(c), the FAA would

require that each repair station maintain and keep current all ADs,

Instructions for Continued Airworthiness, and service bulletins that

relate to articles that it includes on its capability list.

Current Sec. 145.57(a) requires a repair station to retain current

manufacturer's service manuals for each article that it maintains or

alters. The FAA has received petitions for rulemaking requesting that

the FAA permit repair stations to have a manufacturer's customized

aircraft maintenance manuals only when necessary, instead of

continuously maintaining such manuals. The FAA recognizes that

difficulties with this requirement frequently occur because

manufacturers are reluctant to release proprietary information or are

unwilling to provide maintenance manuals for their products when a

repair station is not a party to a licensing agreement. Therefore,

repair stations are able to receive the manufacturer's maintenance

manual for a particular aircraft or article only when the aircraft or

article is delivered to the repair station for maintenance. During

certification, repair stations would be required to have standard

maintenance manuals for the equipment on which they intend to perform

maintenance, preventive maintenance, or alterations; however, the FAA

proposes in Sec. 145.201(d) to require repair stations to possess

article-specific manufacturers' maintenance manuals only when required.

Section 145.203 Capability List

This new section would require repair stations to prepare and

retain a current capability list that would contain a list of the

articles on which it performs maintenance, preventive maintenance, or

alterations. The proposal would require that these articles be

identified by make and model, part number, or other nomenclature

designated by the article's manufacturer. Before revising the

capabilities list, a repair station would be required to complete a

self-evaluation to ensure that it meets all of the requirements for the

proposed operations.

Section 145.205 Repair Station Manual

The proposed section would establish a new requirement for a repair

station to maintain and use a current approved repair station manual

that would set forth the procedures and policies for the repair

station's operation. It also would set forth requirements specifying

the availability of the repair station manual to repair station

personnel. Repair stations would be required to provide the CHDO with a

current copy of the manual. Repair stations that provide electronic

versions of their manual would be required to provide the FAA with the

means to access the manual at the CHDO. In addition, except for

revisions to the capability list, each revision to the repair station

manual must be submitted to the Administrator for approval.

Section 145.207 Repair Station Manual Contents

This section would outline the minimum requirements for the

proposed repair station manual. The information specified includes the

majority of those items now described as acceptable by AC No. 145-3 for

inclusion in the current IPM. The proposed manual would be required to

include an organizational chart of management personnel, a roster of

inspection personnel, a description of the facility's operations, an

explanation of its quality assurance system, a description of its

training program, procedures for performing work at a location other

than the facility, procedures for self-evaluations, maintenance

functions contracted to an outside certificated facility or

noncertificated person, procedures for conducting work under

Sec. 145.7, a description of the facility's recordkeeping system, the

repair station's capability list, procedures for updating the

capability list, manual revision procedures, procedures for changes in

location and facilities of the repair station, and other information

required by the Administrator.

Section 145.209 Quality Control System and Procedures

This proposed section is based on current Sec. 145.45. The proposal

retains the basic requirements of that section and modifies certain

provisions relating to the use of inspection devices and the

[[Page 33158]]

conduct of inspection procedures. It modifies the current rule by

requiring inspection personnel to be skilled in operating inspection

equipment and to be able to interpret defects indicated by the

equipment at times when not just magnetic, fluorescent, or other

mechanical inspection devices are used, but when any inspection device

is used.

The proposed section would require that a repair station establish

specific procedures for the inspection of incoming raw materials and

articles, as well as inspection procedures for articles on which

contract maintenance or alterations are performed. Current

Sec. 145.45(f) requires that an applicant for a repair station

certificate provide a manual containing inspection procedures. The

manual must explain in detail the repair station's inspection system,

including the continuity of inspection responsibility. Although the

proposed manual requirements are included in proposed Sec. 145.207,

proposed Sec. 145.209(e) includes the inspection continuity

requirements by requiring (under the quality control system and

procedures) that the repair station ensure the continuity of inspection

responsibility for the facility. The repair station's inspection system

and procedures are part of its quality assurance system that would be

described in the proposed repair station manual.

Section 145.211 Inspection of Maintenance, Preventive Maintenance, or

Alterations Performed

This proposed section on inspection of maintenance, preventive

maintenance, or alteration is based on current Sec. 145.59 with no

substantive differences, but it has been expanded to address repair

stations located outside of the United States. It includes current

restrictions placed on repair stations located outside the United

States and on the supervisory and inspection personnel employed by

these repair stations.

Section 145.213 Contract Maintenance

The proposed section is based on current Sec. 145.47(c) and

establishes new requirements for a repair station when contracting for

services. These new requirements are described in detail under the

heading ``Contract Maintenance.''

Section 145.215 Privileges and Limitations of Certificate

The proposed section is based on current Sec. 145.51 and generally

retains the requirements of the current rule, except as noted. Proposed

Sec. 145.215(a) modifies current Sec. 145.51 (a) and (b) to include

references to preventive maintenance and to describe more accurately

the articles on which work can be performed. The proposed section also

would permit a repair station to arrange for the maintenance,

preventive maintenance, or alteration of any article for which it is

rated at another organization under its quality control system. The

proposal deletes the current references to the performance of 100-hour,

annual, or progressive inspections found in current Sec. 145.51(c).

This language has been removed because inspection is included in the

current Sec. 1.1 definition of maintenance. Because the current general

airframe rating would be eliminated under the proposal (limited ratings

would still remain available), a repair station with an aircraft rating

would be permitted to perform a 100-hour, annual, or progressive

inspection and approve an aircraft for return to service.

In addition, because the applicability section of the proposed rule

would permit a repair station to perform maintenance, preventive

maintenance, or alterations on any type of article, Sec. 145.215(b)(3)

would describe the method and technical data requirements for major

repairs or major alterations performed on experimental aircraft.

Section 145.217 Recordkeeping

This proposed section is based on current Secs. 145.61 and 145.79.

Proposed paragraph (a)(1) modifies the current rule by requiring all

repair stations to retain detailed records showing the make, model,

identification number, and serial number (when applicable) of the

article on which work was performed. The current 2-year record

retention requirement would be retained in paragraph (a)(2); however,

the proposal would specify that the period from which this time would

be measured would commence on the date on which the article was

approved for return to service, instead of the date on which the work

was performed. Proposed paragraph (a)(3) would require these records to

include a copy of the maintenance release. Proposed paragraph (a)(4)

would permit these records to be retained as actual work documents or

copies thereof, or through the use of an automated data processing

system protected from unauthorized use and access. Proposed paragraph

(b) would require that the repair station provide a copy of an

article's maintenance release, which must be retrievable in English, to

the owner or operator. Under the proposed rule, the repair station

could use as the maintenance release the record that it completes to

comply with Secs. 43.9 and 43.11 of this chapter.

Similar to current requirements of Secs. 91.417(c), 121.380(c), and

135.439(c), proposed Sec. 145.217(c) would require that a repair

station make available to the Administrator or any authorized

representative of the National Transportation Safety Board (NTSB) all

maintenance records required to be kept by proposed Sec. 145.217. The

proposed paragraph specifies that the records would be required to be

provided in English. The records would be required to be provided

either in paper format or, if in other than paper format, with the

means necessary to create a paper copy of the record.

Proposed paragraph (d) would specify those recordkeeping

requirements that apply to repair stations located outside the United

States.

Section 145.219 Reports of Defects or Unairworthy Conditions

Under current Sec. 145.63 or Sec. 145.79, repair stations are

required to submit reports of defects or unairworthy conditions to the

FAA. The FAA proposes to standardize the type of data reported under

the service difficulty reporting (SDR) system by specifically listing

in proposed Sec. 145.219(b) the information required when a repair

station submits a report. The required information would be consistent

with the type of service difficulty information that air carriers

operating under parts 121 and 135 are required to submit. To avoid a

duplication of reporting requirements, the repair station still would

not be required to submit this information to the FAA if the

information has been provided as a result of other regulatory

requirements.

Current Sec. 145.63(b) states that in cases where filing a report

of defects or unairworthy conditions might prejudice the repair

station, the repair station shall refer the matter to the FAA for a

determination as to whether a report is necessary. Because such a

condition does not appear in other parts of the regulations requiring

such reports, the FAA proposes to eliminate this condition from the

proposed rule.

Section 145.221 FAA Inspections

This proposed section is based on current Sec. 145.23 but is

expanded so that the FAA would be able to inspect repair stations'

contract maintenance providers. The proposal also would require that

arrangements for contractors' services include provisions for

inspection of the contractor by the FAA. The proposed rule would remove

the statement found in the current rule specifying that after an

inspection the

[[Page 33159]]

repair station is notified in writing of any defects found during the

inspection. This is common FAA practice and need not be specified in

regulatory language.

Appendix A Job Functions

Appendix A would continue to set forth the job functions and the

equipment requirements for repair stations except for those job

functions that are contracted out. The proposed appendix A is updated

and revised in accordance with the proposed ratings and classes for

repair stations. The deletion of those functions that may be contracted

out to another facility is described in detail above under the heading

``Job Functions.''

Paperwork Reduction Act

An agency may not conduct or sponsor and a person is not required

to respond to a collection of information unless it displays a

currently valid Office of Management and Budget (OMB) control number.

Information collection requirements in this proposed rule previously

have been approved by the Office of Management and Budget (OMB) under

the provisions of the Paperwork Reduction Act of 1980 (Public Law 96-

511) and have been assigned OMB Control Numbers 2120-0003 and 2120-

0010.

Regulatory Evaluation Summary

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 effect of regulatory changes on small entities.

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

the effect of regulatory changes on international trade. In conducting

these analyses, the FAA has determined that this proposal: (1) would

generate benefits that justify its costs and is a significant

regulatory action as defined by Executive Order 12866 and DOT

Regulatory Policies and Procedures (44 FR 11034; February 26, 1979)

because there has been considerable public interest in this subject;

(2) would not have a significant impact on a substantial number of

small entities; and (3) would not constitute a barrier to international

trade. These analyses, available in the docket, are summarized below.

Costs

The estimated net cost of compliance after subtracting cost savings

with the proposed amendment would be approximately $33.3 million (net

of cost savings) in 1996 dollars, discounted at 7 percent, over 11

years. The most costly requirement, which is in Sec. 145.201, relates

to operations and inspection procedures for quality assurance and

quality control systems and would result in repair stations incurring

discounted costs of $80.9 million. The most cost-saving requirement,

which is in Sec. 145.201, relates to a reduction in the number of

manuals that a repair station would be required to maintain and would

result in repair stations saving about $76.1 million discounted.

Benefits

The estimated quantifiable safety benefits of the proposed

amendment are approximately $54.9 million in 1996 dollars, discounted

at 7 percent, over 11 years. On an annual basis, an average of 6.9

total accidents would be avoided, preventing 2.2 fatalities, 1.7

serious injuries, and 2.7 minor injuries. The avoidance of 6.9

accidents would avert at a minimum the destruction of at least 4.7

general aviation aircraft and would avert substantial damage to 1.4

general aviation aircraft. Property damage to other types of aircraft

would also be averted.

International Trade Impact Statement

This proposed rule would not constitute a barrier to international

trade, including the export of U.S. goods and services to foreign

countries and the import of foreign goods and services into the United

States. The proposal affects repair stations located both within and

outside the United States. There are approximately 522 repair stations

listed in AC No. 140-7I that are located outside the United States;

they would be required to comply with each of the provisions applicable

to repair stations located within the United States. However, repair

stations located outside the United States would continue to be

permitted to employ individuals not certificated under part 65.

The proposal is not expected to affect trade opportunities for U.S.

firms doing business overseas or for foreign firms doing business in

the United States. Furthermore, the proposal is consistent with the

terms of several trade agreements to which the United States is a

signatory, such as the Trade Agreements Act of 1979 (19 U.S.C. 2501 et

seq.), incorporating the Agreement on Trade in Civil Aircraft (31

U.S.C. 619) and the Agreement on Technical Barriers to Trade

(Standards) (19 U.S.C. 2531). Aircraft repair and maintenance services

are subject to general obligations and specific U.S. market access

commitments under the General Agreement on Trade in Services (GATS)

administered by the World Trade Organization (WTO). The proposed rule

is fully consistent with United States' obligations and commitments

under this treaty. The proposed revision to part 145 also is consistent

with 49 U.S.C. 40105, formerly Sec. 1102(a) of the Federal Aviation Act

of 1958, as amended, which requires the FAA to exercise and perform its

powers and duties consistently with any obligation assumed by the

United States in any agreement that may be in force between the United

States and any foreign country or countries.

Unfunded Mandates Reform Act Assessment

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

codified in 2 U.S.C. 1501-1571, 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 expenditures 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 would 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.

This proposed rule does not meet the cost thresholds described

above. Furthermore, this proposed rule would not impose a significant

cost on small

[[Page 33160]]

governments and would not uniquely affect those small governments.

Therefore, the requirements of Title II of the Unfunded Mandates Reform

Act of 1995 do not apply.

Initial Regulatory Flexibility Determination

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

principle of regulatory issuance that agencies shall endeavor,

consistent with the objective of the rule 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 1980 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.

The initial determination is that the annual costs associated with

compliance with the proposed revision of part 145 would be less than

$5,000 per repair station and each affected manufacturer. For the type

of business entities covered by this proposed rule, these annual costs

are negligible. Therefore, the FAA certifies that the proposed revision

of part 145, would not have a significant economic impact, negative or

positive, on the repair stations or MMFs considered to be small

entities under the rule.

Federalism Implications

The regulations proposed 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

proposal would not have sufficient federalism implications to warrant

the preparation of a Federalism Assessment.

International Compatibility

In keeping with the U.S. obligation under the Convention of

International Civil Aviation, it is the FAA's policy to comply with the

Standards and Recommended Practices of the International Civil Aviation

Organization to the maximum extent practicable. For this notice, the

FAA has determined that this proposal, if adopted, would not present

any differences.

This proposed rule would provide nearly uniform requirements by the

FAA and the JAA for maintenance facilities that perform maintenance,

preventive maintenance, and alterations on aircraft, airframes,

aircraft engines, propellers, appliances, components, and parts.

Exceptions to these nearly uniform requirements are the FAA's

requirements for major repairs and major alterations to be performed in

accordance with technical data approved by the FAA, and the JAA's

requirements for each approved maintenance organization to designate an

accountable manager.

Environmental Analysis

FAA Order 1050.1D defines FAA actions that may be categorically

excluded from preparation of a National Environmental Policy Act (NEPA)

environmental assessment or environmental impact statement. In

accordance with FAA Order 1050.1D, appendix 4, paragraph 4(j), this

rulemaking action qualifies for a categorical exclusion.

Energy Impact

The energy impact of the proposed rule has been assessed in

accordance with the Energy Policy and Conservation Act (EPCA) and

Public Law 94-163, as amended (42 U.S.C. 6362). It has been determined

that it is not a major regulatory action under the provisions of the

EPCA.

Cross Reference

To illustrate how the current regulations have been revised, and to

identify how the proposed rule relates to the current rule, the

following cross-reference tables are provided.

Cross-Reference Table

------------------------------------------------------------------------

Old section New section(s)

------------------------------------------------------------------------

145.1.............................. 145.1

145.2.............................. 145.7

145.3.............................. 145.5 and 145.9

145.11............................. 145.51 and 145.53

145.13............................. 145.51

145.15............................. 145.57 and 145.105

145.17............................. 145.55

145.19............................. 145.5

145.21............................. 145.105

145.23............................. 145.221

145.25............................. 145.9

145.31............................. 145.59

145.33............................. 145.59

145.35............................. 145.103

145.37............................. 145.103

145.39............................. 145.151 and 145.153

145.41............................. 145.155

145.43............................. 145.157

145.45............................. 145.201, 145.207, and 145.209

145.47............................. 145.111 and 145.213

145.49............................. 145.111

145.51............................. 145.107 and 145.215

[[Page 33161]]

145.53............................. 145.5 and 145.215

145.55............................. 145.101

145.57............................. 145.103 and 145.201

145.59............................. 145.211

145.61............................. 145.217

145.63............................. 145.219

145.71............................. 145.51

145.73............................. 145.5 and 145.215

145.75............................. 145.151 and 145.153

145.77............................. Deleted

145.79............................. 145.217 and 145.219

145.101............................ Deleted

145.103............................ Deleted

145.105............................ 145.201

Appendix A......................... Appendix A.

------------------------------------------------------------------------

Cross-Reference Table

------------------------------------------------------------------------

New section Old section(s)

------------------------------------------------------------------------

145.1.............................. 145.1

145.2.............................. New

145.3.............................. New

145.5.............................. 145.3, 145.19, and 145.53

145.7.............................. 145.2

145.9.............................. 145.3 and 145.25

145.11............................. New

145.51............................. 145.11, 145.13, and 145.71

145.53............................. 145.11 and 145.71

145.55............................. 145.15 and 145.17

145.57............................. 145.15

145.59............................. 145.31 and 145.33

145.61............................. New

145.101............................ 145.55

145.103............................ 145.35, 145.37, and 145.57

145.105............................ 145.21

145.107............................ 145.51

145.109............................ New

145.111............................ 145.47 and 145.49

145.151............................ 145.39 and 145.75

145.153............................ 145.39 and 145.75

145.155............................ 145.41

145.157............................ 145.43

145.159............................ New

145.201............................ 145.45, 145.57, and 145.105

145.203............................ New

145.205............................ New

145.207............................ 145.45

145.209............................ 145.45

145.211............................ 145.59

145.213............................ 145.47

145.215............................ 145.51 and 145.73

145.217............................ 145.61 and 145.79

145.219............................ 145.63 and 145.79

145.221............................ 145.23

Appendix A......................... Appendix A

------------------------------------------------------------------------

List of Subjects

14 CFR Part 11

Aircraft, Airmen, Aviation safety, Safety.

14 CFR Part 91

Aircraft, Airworthiness directives and standards, Aviation safety,

Safety.

14 CFR Part 121

Aircraft, Airmen, Airplanes, Airworthiness directives and

standards, Aviation safety, Safety.

14 CFR Part 135

Aircraft, Airplanes, Airworthiness, Airmen, Helicopters, Aviation

safety, Safety.

14 CFR Part 145

Air carriers, Air transportation, Aircraft, Aviation safety,

Recordkeeping and reporting, Safety.

The Proposed Amendment

In consideration of the foregoing, the Federal Aviation

Administration proposes to amend parts 11, 91, 121, 135, and 145 of the

Federal Aviation

[[Page 33162]]

Regulations (14 CFR parts 11, 91, 121, 135, and 145) as follows:

PART 11--GENERAL RULEMAKING PROCEDURES

1. The authority citation for part 11 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40101, 40103, 40105, 40109, 40113,

44110, 44502, 44701, 44702, 44711, 46102.

Sec. 11.101 [Amended]

2. Section Sec. 11.101(b) is amended by replacing the reference to

Sec. 145.63 in the chart with a reference to Sec. 145.219.

PART 91--GENERAL OPERATING AND FLIGHT RULES

3. The authority citation for part 91 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113, 40120, 44101, 44111,

44701, 44709, 44711, 44712, 44715, 44716, 44717, 44722, 46306,

46315, 46316, 46502, 46504, 46506, 46507, 47122, 47508, 47528,

47531.

4. Section 91.411 is amended by revising paragraphs (b)(2)(iii) and

(b)(2)(iv) and by removing paragraph (b)(2)(v) to read as follows:

Sec. 91.411 Altimeter system and altitude reporting equipment tests

and inspections.

* * * * *

(b) * * *

(2) * * *

(iii) A specialized service rating appropriate to the test to be

performed; or

(iv) An aircraft rating appropriate to the airplane or helicopter

to be tested; or

* * * * *

5. Section 91.413 is amended by revising paragraphs (c)(1)(i),

(c)(1)(ii), and (c)(1)(iii) and by removing paragraph (c)(1)(iv) to

read as follows:

Sec. 91.413 ATC transponder tests and inspections.

* * * * *

(c) * * *

(1) * * *

(i) An avionics rating, Class 3;

(ii) A limited avionics rating appropriate to the make and model

transponder to be tested;

(iii) A specialized service rating appropriate to the test to be

performed; or

* * * * *

6. Appendix A to part 91 is amended by revising section 4 paragraph

(b)(1)(ii) and by removing section 4 paragraph (b)(1)(iii) to read as

follows:

Appendix A to Part 91 Category II Operations: Manual, Instruments,

Equipment, and Maintenance

* * * * *

(4) * * *

(b) * * *

(1) * * *

(ii) An avionics rating.

* * * * *

PART 121--CERTIFICATION AND OPERATIONS: DOMESTIC, FLAG, AND

SUPPLEMENTAL AIR CARRIERS AND COMMERCIAL OPERATORS OF LARGE

AIRCRAFT

7. 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.

8. Special Federal Aviation Regulation No. 36 is amended by

revising paragraph (2)(c) to read as follows:

SFAR No. 36

* * * * *

(2) * * *

(c) Contrary provisions of Sec. 145.215(b)(2) of the Federal

Aviation Regulations notwithstanding, the holder of a repair station

certificate under 14 CFR part 145 that is located in the United

States 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.

* * * * *

9. Section 121.378 is amended by revising paragraph (a) to read as

follows:

Sec. 121.378 Certificate requirements.

(a) Except for maintenance, preventive maintenance, alterations,

and required inspections performed by a certificated repair station

that is located outside the United States, each person who is directly

in charge of maintenance, preventive maintenance, or alterations, and

each person performing required inspections must hold an appropriate

airman certificate.

* * * * *

10. Section 121.709 is amended by removing the concluding text of

paragraph (b); redesignating paragraphs (c) and (d) as paragraphs (d)

and (e), respectively, and adding a new paragraph (c) to read as

follows:

Sec. 121.709 Airworthiness release or aircraft log entry.

* * * * *

(c) Notwithstanding paragraph (b)(3) of this section, after

maintenance, preventive maintenance, or alterations performed by a

repair station that is located outside the United States, the

airworthiness release or log entry required by paragraph (a) of this

section may be signed by a person authorized by that repair station.

* * * * *

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

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

follows:

Authority: 49 U.S.C. 106(g), 40113, 44701, 44702, 44705, 44709,

44711, 44713, 44715, 44717, 44722.

12. Section 135.435 is amended by revising paragraph (a) to read as

follows:

Sec. 135.435 Certificate requirements.

(a) Except for maintenance, preventive maintenance, alterations,

and required inspections performed by a certificated repair station

that is located outside the United States, each person who is directly

in charge of maintenance, preventive maintenance, or alterations, and

each person performing required inspections must hold an appropriate

airman certificate.

* * * * *

13. Section 135.443 is amended by redesignating paragraph (c) as

paragraph (d) and revising it; and redesignating the concluding text of

paragraph (b) as paragraph (c) and revising it to read as follows:

Sec. 135.443 Airworthiness release or aircraft maintenance log entry.

* * * * *

(c) Notwithstanding paragraph (b)(3) of this section, after

maintenance, preventive maintenance, or alterations performed by a

repair station that is located outside the United States, the

airworthiness release or log entry required by paragraph (a) of this

section may be signed by a person authorized by that repair station.

(d) Instead of restating each of the conditions of the

certification required by paragraphs (b) and (c) of this section, the

certificate holder may state in its manual that the signature of an

authorized certificated mechanic or repairman constitutes that

certification.

14. Part 145 is revised to read as follows:

PART 145--REPAIR STATIONS

Special Federal Aviation Regulations

SFAR No. 36 [Note]

[[Page 33163]]

Subpart A--General

Sec.

145.1 Applicability.

145.2 Certificate issued to a person in a country outside the

United States; certificate issued to a person in a country with

which the U.S. has a bilateral aviation safety agreement.

145.3 Definition of terms.

145.5 Certificate and operations specifications requirements.

145.7 Performance of maintenance, preventive maintenance,

alterations, and required inspections for certificate holders under

parts 121, 125, and 135; and for foreign air carriers or foreign

persons operating a U.S.-registered aircraft in common carriage

under part 129.

145.9 Advertising.

145.11 Deviation authority.

Subpart B--Certification

145.51 Application for certificate.

145.53 Issue of certificate.

145.55 Duration and renewal of certificate.

145.57 Amendment to or transfer of certificate.

145.59 Ratings and classes.

145.61 Transition to new system of ratings.

Subpart C--Facilities, Equipment, Materials, and Housing

145.101 General.

145.103 Facility and housing requirements.

145.105 Change of location, housing, or facilities.

145.107 Satellite repair stations.

145.109 Maintenance, preventive maintenance, and alterations

performed at satellite repair stations.

145.111 Equipment and material requirements.

Subpart D--Personnel

145.151 Personnel requirements.

145.153 Supervisory and inspection personnel requirements.

145.155 Recommendation of persons for certification as repairmen.

145.157 Records of management, supervisory, and inspection

personnel.

145.159 Training requirements.

Subpart E--Operating Rules

145.201 Quality assurance and quality control systems.

145.203 Capability list.

145.205 Repair station manual.

145.207 Repair station manual contents.

145.209 Quality control system and procedures.

145.211 Inspection of maintenance, preventive maintenance, or

alterations performed.

145.213 Contract maintenance.

145.215 Privileges and limitations of certificate.

145.217 Recordkeeping.

145.219 Reports of defects or unairworthy conditions.

145.221 FAA inspections.

Appendix A to Part 145--Job Functions

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

Special Federal Aviation Regulation

SFAR No. 36

Editorial Note: For the text of SFAR No. 36, see part 121 of

this chapter.

Subpart A--General

Sec. 145.1 Applicability.

This part prescribes the rules governing the certification of, and

associated ratings and general operating rules for, repair stations

that perform maintenance, preventive maintenance, or alteration of any

aircraft, airframe, aircraft engine, propeller, appliance, or component

part thereof.

Sec. 145.2 Certificate issued to a person in a country outside the

United States; certificate issued to a person in a country with which

the U.S. has a bilateral aviation safety agreement.

(a) The Administrator may issue a repair station certificate to a

person in a country outside the U.S., if the Administrator finds that

the person complies with the requirements of this part.

(b) If the person is located in a country with which the U.S. has a

bilateral aviation safety agreement, the Administrator may base the

finding that the person complies with this part on a certification from

the civil aviation authority of that country; such certification must

be made in accordance with implementation procedures signed by the

Administrator or the Administrator's designee.

Sec. 145.3 Definition of terms.

For the purposes of this part, the following definitions apply:

(a) Accountable manager means the manager who has the corporate

authority for ensuring that all maintenance, preventive maintenance,

and alteration is carried out to the standards required by the

Administrator.

(b) Actual work documents means records that provide a detailed

description of the maintenance, preventive maintenance, and alteration

steps and procedures actually accomplished on a particular aircraft,

airframe, aircraft engine, propeller, appliance, component, or part

thereof, and that are signed by the individual performing or approving

the work.

(c) Approve for return to service means certification by a

certificated repair station representative that the maintenance,

preventive maintenance, or alteration performed on an aircraft,

airframe, aircraft engine, propeller, appliance, or component part

thereof was accomplished using the methods, techniques, and practices

prescribed in the current manufacturer's maintenance manual or

Instructions for Continued Airworthiness prepared by its manufacturer,

or by using other methods, techniques, and practices acceptable to the

Administrator.

(d) Approved data means technical information approved by the

Administrator.

(e) Article means any item, including but not limited to, an

aircraft, airframe, aircraft engine, propeller, appliance, accessory,

assembly, subassembly, system, subsystem, module, component, unit,

product, or part.

(f) Certificated means certificated by the Administrator.

(g) Certificate holding district office means the Flight Standards

District Office that has responsibility for administering the

certificate and is charged with the overall inspection of the

certificate holder's operation.

(h) Composite means structural materials made of substances,

including, but not limited to, wood, metal, ceramic, plastic, fiber-

reinforced materials, graphite, boron, or epoxy, with built-in

strengthening agents that may be in the form of filaments, foils,

powders, or flakes of a different material.

(i) Computer system means any electronic or automated system

capable of receiving, storing, and processing external data, and

transmitting and presenting such data in a usable form for the

accomplishment of a specific function.

(j) Consortium means the holder of a type certificate that forms a

combination or group of separate certificated repair stations to

perform maintenance, preventive maintenance, or alterations of that

type-certificated product and components thereof, and functions under a

single unified quality control and quality assurance system.

(k) Directly in charge. A person who is directly in charge is

assigned to a position in which he or she is responsible for the work

of a shop that performs maintenance, preventive maintenance,

alterations, or other functions affecting aircraft airworthiness. A

person who is directly in charge need not physically observe and direct

each worker constantly but must be available for consultation and

decision on matters requiring instruction or decision from higher

authority than that of the persons performing the work.

(l) Facility means a physical plant, including land, buildings, and

equipment, that provides the means for the performance of maintenance,

preventive maintenance, or alteration of any article.

[[Page 33164]]

(m) Housing means buildings, hangars, and other structures to

accommodate the necessary equipment and materials of a repair station

that

(1) Provide working space for the performance of the maintenance,

preventive maintenance, or alterations for which the repair station is

certificated and rated; and

(2) Provide structures for the proper protection of aircraft,

airframes, aircraft engines, appliances, components, parts, and

subassemblies thereof during disassembly, cleaning, inspection, repair,

alteration, assembly, and testing; and for the proper storage,

segregation, and protection of materials, parts, and supplies.

(n) Maintenance release means a repair station document signed by

an authorized repair station representative that states that the

article worked on is approved for return to service for the

maintenance, preventive maintenance, or alterations performed.

(o) Overhauled. An article can be properly described as

``overhauled'' if, by using methods, techniques, and practices

acceptable to the Administrator, the article has been disassembled,

cleaned, inspected, repaired as necessary, and reassembled, and it has

been tested in accordance with approved standards and technical data or

in accordance with current standards and technical data acceptable to

the Administrator that have been developed and documented by the holder

of the type certificate, supplemental type certificate, or a material,

part, process, or appliance approval under 14 CFR 21.305 of this

chapter.

(p) Signature means an individual's unique identification used as a

means of authenticating a maintenance record entry or maintenance

record. A signature may be handwritten, electronic, or any other form

acceptable to the Administrator.

Sec. 145.5 Certificate and operations specifications requirements.

(a) No person may operate as a certificated repair station without,

or in violation of, a repair station certificate or Operations

Specifications issued under this part.

(b) A certificated repair station may perform maintenance,

preventive maintenance, or alterations on an aircraft, airframe,

aircraft engine, propeller, appliance, component, or part thereof only

for which it is rated and within the limitations placed in its

Operations Specifications.

(c) The certificate issued to each certificated repair station must

be available on the premises for inspection by the public and the

Administrator.

(d) Operations Specifications issued to each certificated repair

station contain the following:

(1) The repair station certificate number;

(2) Class ratings;

(3) Limited ratings, to include makes, models, or parts;

(4) Specialized service ratings, to include the specification used;

(5) The air carrier's geographic authorization for repair stations

located outside of the United States; and

(6) Any other items the Administrator may require or allow to meet

a particular situation.

Sec. 145.7 Performance of maintenance, preventive maintenance,

alterations, and required inspections for certificate holders under

parts 121, 125, and 135; and for foreign air carriers or foreign

persons operating a U.S.-registered aircraft in common carriage under

part 129.

(a) Each certificated repair station that performs maintenance,

preventive maintenance, or alterations for an air carrier or commercial

operator having a continuous airworthiness maintenance program under

part 121 or part 135 of this chapter must, as applicable, comply with

(1) Sections 121.361, 121.365, 121.367, 121.371, 121.375, 121.377,

121.378, and 121.380 of this chapter as the part 121 certificate holder

is required to comply; or

(2) Sections 135.2, 135.411, 135.419, 135.421, 135.423, 135.425,

135.429, 135.433, 135.435, and 135.439 of this chapter as the part 135

certificate holder is required to comply.

(b) Each certificated repair station that performs maintenance,

preventive maintenance, or alterations under paragraph (a) of this

section must perform that work in accordance with the applicable

portions of the air carrier's or commercial operator's manual.

(c) Each certificated repair station that performs inspections on

airplanes under part 125 of this chapter must perform those inspections

in accordance with the approved inspection program for the operator of

the airplane.

(d) Each certificated repair station that performs maintenance,

preventive maintenance, or alterations for a foreign air carrier or

foreign person operating a U.S.-registered aircraft in common carriage

under part 129 of this chapter must perform that work in accordance

with a program approved by the Administrator.

(e) Notwithstanding the facility and housing requirements of

Sec. 145.103, the Administrator may grant approval for a certificated

repair station that is located at a line station for an air carrier

certificated under part 121 or part 135 of this chapter, or at a line

station for a foreign air carrier or foreign person operating a U.S.-

registered aircraft in common carriage under part 129 of this chapter

to perform line maintenance on any aircraft of that air carrier or

person, provided

(1) The repair station performs such line maintenance in accordance

with the operator's manual or approved program;

(2) The repair station has the necessary equipment, trained

personnel, and technical data to perform such line maintenance; and

(3) The repair station's Operations Specifications includes an

authorization to perform line maintenance.

Sec. 145.9 Advertising.

(a) No repair facility may advertise as a certificated repair

station until a repair station certificate has been issued to that

facility.

(b) No certificated repair station may make any statement, either

in writing or orally, about itself that is false or is designed to

mislead any person.

(c) Whenever the advertising of a repair station indicates that it

is certificated, the advertisement must clearly state the repair

station's certificate number.

Sec. 145.11 Deviation authority.

(a) The Administrator may, upon consideration of the circumstances

of a particular repair station, issue a deviation providing relief from

specified sections of this part, provided the Administrator finds that

the circumstances presented warrant the deviation and that a level of

safety will be maintained equal to that provided by the rule from which

the deviation is sought. This deviation authority will be issued as a

Letter of Deviation Authority.

(b) A Letter of Deviation Authority may be terminated or amended at

any time by the Administrator.

(c) A request for deviation authority must be made in a form and

manner acceptable to the Administrator and submitted to the FAA,

Associate Administrator for Regulation and Certification, 800

Independence Avenue SW., Washington, DC 20591, at least 60 days before

the date the deviation from specified sections in this part is

necessary for the intended maintenance, preventive maintenance, or

alteration. A r

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