[Federal Register Volume 59, Number 125 (Thursday, June 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15968]
[[Page Unknown]]
[Federal Register: June 30, 1994]
_______________________________________________________________________
Part III
Department of Transportation
_______________________________________________________________________
Federal Aviation Administration
_______________________________________________________________________
14 CFR Part 187
Fees for Certification Services and Approvals Performed Outside the
United States; Proposed Rule
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 187
[Docket No. 27809; Notice No. 94-24]
RIN 2120-AE72
Fees for Certification Services and Approvals Performed Outside
the United States
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking (NPRM).
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SUMMARY: This notice of proposed rulemaking would update existing fees
for airmen and repair station certification services performed outside
the United States (U.S.) to reflect current cost levels; establish a
schedule of fees where no fee currently exists for: tests,
authorizations, certificates, permits, or ratings relating to any
airmen certification, and repair station certification performed
outside the United States; establish the methodology for computing user
fees and a timetable for periodic updates of fees; and establish
additional methods of collecting those fees.
This proposed rulemaking is necessary to allow the FAA to fully
recover the costs it incurs in performing airmen certification, and
repair station certification services outside the United States and to
bring current airmen fees charges more nearly in line with
nondiscrimination principles of multilateral trade agreements to which
the U.S. is a signatory including the General Agreement on Tariffs and
Trade (GATT) and the GATT Aircraft Code.
The intended effect of this proposed action is to recover the costs
of providing airmen, and repair station certification services outside
the United States. Recovering these costs would allow the FAA to
continue to provide airmen, and repair station certification services
outside the United States, thereby facilitating the acceptance of U.S.
aeronautical products overseas.
DATES: Comments must be received on or before August 1, 1994.
ADDRESSES: Comments on this notice should be mailed or delivered in
triplicate to: Federal Aviation Administration, Office of the Chief
Counsel, Attention: Rules Docket (AGC-10), Docket No. 27809, 800
Independence Avenue SW., Washington, DC 20591. Comments may be examined
in the Rules Docket, Room 915-G weekdays between 8:30 a.m. and 5 p.m.,
except on Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Emily A. White, Flight Standards Service, AFS-50, Federal Aviation
Administration, 800 Independence Avenue SW., Washington, DC 20591,
telephone (202) 267-3301.
SUPPLEMENTARY INFORMATION:
Comments Invited
Interested persons are invited to participate in the making of the
proposed rule 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 notice are also invited. Substantive comments should
be accompanied by cost estimates, if appropriate. Comments should
identify the regulatory docket or notice number and should be submitted
in triplicate to the Rules Docket address specified above. All comments
received on or before the closing date for comments specified will be
considered by the Administrator before taking action on this proposed
rulemaking. The proposals contained in this notice may be changed in
light of comments received. All comments received will be available,
both before and after the closing date for comments, in the Rules
Docket for examination by interested persons. A report summarizing each
FAA-public contact, concerned with the substance of this rulemaking,
will be filed in the docket. Commenters wishing the FAA to acknowledge
receipt of their comments submitted in response to this notice must
include a preaddressed, stamped postcard on which the following
statement is made: ``Comments to Docket No. 27809.'' The postcard will
be date/time stamped and mailed to the commenter.
Availability of NPRMs
Any person may obtain a copy of this NPRM by submitting a request
to the Federal Aviation Administration, Office of Public Affairs,
Attention: Public Inquiry Center (APA-200), 800 Independence Avenue,
SW., Washington, DC 20591, or by calling (202) 267-3484. Communications
must identify the notice number of this NPRM.
Persons interested in being placed on the mailing list for future
NPRMs should request from the above office a copy of Advisory Circular
11-2A, Notice of Proposed Rulemaking Distribution System, which
describes the application procedures.
Background
Statement of the Problem
The fee schedule that appears in 14 CFR part 187, appendix A, was
established by rulemaking and became effective on October 18, 1982. It
contains fees for certain certification services performed outside of
the United States by the FAA. However, it does not contain fees for the
full scope of activities for which fees may be charged under current
statutory authority. Rather, the fee schedule lists only fees for
services that were being rendered outside the United States at the time
of that rulemaking. The fee schedule has not been updated since 1982,
although the FAA's costs for performing these services has escalated
since adoption of the present rule in 1982. The FAA incurs special
costs to operate overseas that increase the costs for providing
services outside the United States. These additional costs include
cost-of-living allowances as well as allowances for housing and
education. Due to these costs, employing an inspector outside the
United States is approximately $85.4 thousand more costly than
employing the same inspector within the United States.
Further, since the methodology for computing fee schedules and time
table for adjustment of fees was not established in 14 CFR part 187,
appendix A, it is currently necessary to update this fee schedule by
rulemaking.
The changes set out in this NPRM make the FAA's fee practice more
nearly consistent with the principles of nondiscrimination and most-
favored-nation treatment that are at the core of the international
trade regime set up by the GATT, and which includes the Aircraft Code
and the General Agreement on Trade in Services. Under these core trade
principles, governments should not treat foreign nationals differently
in the measures that they take that affect international trade. Airman
certifications are not governed by any trade agreement to which the
U.S. is a party, but the FAA has determined that bringing its fee
practices into line with international trade practices is desirable, if
not required by any specific obligation of the U.S. FAA measures with
regard to certification of foreign repair stations, however, including
fees charged, will be subject to U.S. obligations under the General
Agreement on Trade in Service (GATS), recently concluded in the so-
called Uruguay Round of GATT negotiations. The U.S. signed the
agreement, but has not ratified it, and it is not in force.
Implementing legislation has not yet been submitted to Congress.
Nevertheless, the GATS, which applies multilateral trade principles to
trade in services for the first time, will cover some aspects of
aircraft maintenance. This NPRM will be consistent with U.S.
obligations under the GATS, once it goes into effect.
Statutory Authority
Title VI of the Federal Aviation Act of 1958, as amended (the Act),
gives the Administrator authority to issue certificates for airmen,
instructors, schools, and repair stations.
In addition, under Title V of the Independent Offices Appropriation
Act of 1952 (31 U.S.C. 9701), the FAA has been charged with
establishing a fair and equitable system for recovering full costs
expended for any service, such as the issuance of the certificates
discussed in this proposal, that provide a special benefit to an
individual beyond those that accrue to the general public. Section 403a
of that Act provides, in part, as follows:
It is the sense of the Congress that any work service,
publication, report, document, benefit, privilege, authority, use,
franchise, license, permit, certificate, registration, or similar
thing of value or utility performed, furnished, provided, granted,
prepared or issued by any Federal Agency * * * to or for any person
(including groups, associations, organizations, partnerships,
corporations, or businesses), except those engaged in the
transaction of official business of the Government, shall be self-
sustaining to the fullest extent possible * * *.
Section 483a further provides, in part:
The head of each Federal agency is authorized by regulation
(which, in the case of agencies in the Executive Branch, shall be as
uniform as practicable and subject to such policies as the President
may prescribe) to prescribe therefore such fee, charge, or price, if
any, as he shall determine, in case none exists, or redetermine, in
case of any existing one, to be fair and equitable taking into
consideration direct and indirect cost to the Government, value to
the recipient, public policy or interest served, and other pertinent
facts * * *.
Finally, in 1980, Congress passed the International Air
Transportation Competition Act of 1979 (hereinafter ``IATC Act'')
giving the FAA authority to establish fee schedules for airmen and
repair station certification services provided outside the U.S. Section
28 of the IATC Act amended Section 45 of the Airline Deregulation Act
to read as follows:
Nothing in this section shall prohibit the Secretary of
Transportation or the Administrator from collecting a fee, charge,
or price for any test, authorization, certificate, permit, or
rating, administered or issued outside the United States, relating
to any airman or repair station. (49 U.S.C. 334, second sentence).
The amounts collected shall be paid to the Federal Government.
Office of Management and Budget (OMB) Guidelines
To aid in establishing fee schedules, OMB has prescribed in
Circular No. A-25 the general guidelines to be used in developing an
equitable and reasonable uniform system of charges for certain
government services and property. The circular provides that ``where a
service (or privilege) provides special benefits to an identifiable
recipient above and beyond those that accrue to the public at large, a
charge should be imposed to receive the full cost to the Federal
Government of rendering that service.'' Circular No. A-25 specifies the
following:
A special benefit will be considered to accrue and a charge should
be imposed when a Government-rendered service:
(a) Enables the beneficiary to obtain more immediate or substantial
gains or values (which may or may not be measurable in monetary terms)
than those which accrue to the general public (for example, receiving a
patent, crop insurance, or license to carry on a specific business), or
(b) Provides business stability or assures public confidence in the
business activity of the beneficiary (for example, certificates of
necessity and convenience [sic: convenience and necessity] for airline
routes, or safety inspections of craft); or
(c) Is performed at the request of the recipient and is above and
beyond the services regularly received by other members of the same
industry or group, or of the general public (for example, receiving
passport visa, airman's certificate, or an inspection after regular
duty hours).
General Discussion of the Proposals
This notice proposes that the fee schedule in 14 CFR part 187,
Appendix A, be amended to provide the methodology for computing user
fees that permit full recovery of the FAA costs incurred in performing
these services authorized by legislation and to develop a timetable for
updating fees. The method of payment of fees prescribed in 14 CFR
187.15 would also be amended to take advantage of some additionally
available banking services, that is, wire transfers and payment by
credit card, that would expedite deposit of funds to the U.S.
Government.
In keeping with the authority granted under the IATC Act, this
notice would establish the schedule of fees that would be published in
an FAA Advisory Circular on inspector fees. Under this proposal, hourly
rates for repair station certifications, and fixed fees for each airman
certificate issued would be derived from total costs to the FAA of
providing the services and have been computed using direct and indirect
labor costs (excluding holiday, Sunday, and overtime costs), and
overhead costs. Fees for transportation and subsistence expenses
associated with the issuance of certificates have not been included in
the computation of hourly fees and fixed fees. Fees covering those
expenses would be charged to applicants in addition to the specified
fee whenever such expenses are incurred by the FAA in providing the
requested service. Consistent with OMB Circular A-25, under this NPRM
the FAA would recover all costs incurred for performing the above-
described certification services outside the U.S.
Airman Certifications
There are 55 categories of airman certification actions for which
fees are prescribed under the Appendix A at the present time. These
were the only categories of airman certification actions being
administered by the FAA outside the United States at the time of the
original fees rulemaking in 1982. Since that time, demand for airman
certification services outside the U.S. has increased, and the FAA now
administers airman tests, approvals, and ratings for which fees have
not been established.
There are 96 categories of FAA airman tests, approvals, or ratings
that currently may be performed outside the U.S. This proposal would
update existing fees for the 55 types of airman tests, approvals, and
ratings listed in 14 CFR part 187, Appendix A, and would also establish
fees for the 41 other types of airman tests, approvals and ratings that
the FAA may administer outside the United States. Thus, the proposed
rule would prescribe fees for all tests, renewals, authorizations, or
approvals relating to airman certification outside the United States.
This NPRM would also permit FAA recovery of transportation and
subsistence expenses that may be incurred in the administering of
airman tests, approvals, and ratings outside the United States.
Generally, written airman tests are given at the FAA Flight Standards
Office (FSO) and practical airman tests are conducted at a nearby
airport where transportation and subsistence expenses are not incurred.
When inspectors give airman tests at locations outside of the FAA duty
station city, those tests are typically conducted in conjunction with a
scheduled inspection. Since the fees charged for airman tests do not
offset the costs associated with travel, the FAA currently does not
send its inspectors to locations outside their duty stations solely for
the purpose of conducting airman tests.
An occasion may arise, however, where an individual or group of
individuals, such as a flying club, may be willing to pay the
transportation and subsistence expenses of an FAA inspector to permit
him or her to travel in order to administer airman tests. In instances
of this type, this notice of proposed rulemaking would permit the FAA
to recover transportation and subsistence expenses in addition to the
established airman fee.
Under the current rule, the FAA may charge only foreign nationals
when it administers airman tests or performs similar services outside
the United States. This NPRM would remove that limitation by permitting
the FAA to charge all applicants for these services, regardless of
country of citizenship, as authorized by the IATC Act. The removal of
this limitation will correct the current inequity of FAA charging U.S.-
owed foreign repair stations for certification actions but not charging
other U.S. citizens for airman certification.
The cost to the FAA of providing airman certification services
outside the United States is the same for all applicants for the same
type of test regardless of the citizenship of the applicant. Because
Federal law prohibits charging anyone, a foreign national or a U.S.
citizen, more than the cost of services provided, the application of
fees only to foreign nationals effectively precludes full recovery of
costs. Moreover, it is highly unlikely that costs of services provided
abroad to U.S. citizens could be recovered through the indirect user
taxes that provide most of the FAA's funding. These taxes--assessed on
the value of domestic passenger tickets, domestic freight charges,
passengers departing the United States, and aviation fuel sold in the
United States--are not paid by airmen living abroad, whether U.S.
citizens or foreign nationals.
Most U.S. citizens already pay for airman testing services provided
outside the United States by using FAA designated test examiners for
obtaining airman certification services. Under this proposal, U.S.
citizens would pay the same fee as anyone else for the certification
services described in this NPRM, regardless of whether a service is
provided by an FAA designated test examiner or by an FAA inspector.
Repair Stations
This proposal would also revise the hourly billing rate paid to the
FAA for the certification of repair stations. The current rate, found
in 14 CFR part 187, Appendix A, would be increased from $47 per
inspector hour to $80 per inspector hour to cover the FAA's current
costs incurred while performing this service. In addition to the hourly
fees for inspector services, this proposal would permit the FAA to
recover transportation and subsistence expenses that may be incurred in
connection with repair station and services. The transportation and
subsistence expenses incurred by FAA inspectors represent a large
portion of the costs incurred by the FAA when performing repair station
certification work. Most of this work must be performed on-site and,
therefore, requires that an FAA inspector travel to the repair station
facility to be inspected. Repair stations facilities range from 20
minutes to 30 hours in travel time from FAA FSO's and, in some
instances, lack of funds to cover the FAA's transportation and
subsistence costs may prevent the agency from sending inspectors to
perform needed repair station certification evaluations.
This proposal would delete the existing hourly fee of $14 for
clerical time devoted to repair station certification activities listed
in 14 CFR part 187, Appendix A. Instead of computing a direct fee for
clerical time, clerical costs have been included in the hourly base
rate that would be charged for the FAA inspector's time.
Fee Computation
Proposed fixed fees and hourly rates have been derived based on the
standard methodology used in FAA cost allocation studies. A single,
average hourly billing rate for all Flight Standards Aviation Safety
Inspectors (ASI'S), both domestic based ASI'S and foreign based ASI'S,
was derived using the methodology discussed in this section. Domestic
based ASI'S perform certification services, in addition to foreign
based ASI'S. While domestic based ASI'S are employed at a much lower
rate than foreign based ASI'S ($85.4 thousand annual difference) it is
beneficial, and consistent with international treaties, to have one
average hourly billing rate for ASI services, rather than have multiple
rates based on ASI location.
To determine the average hourly rate the FY94 Flight Standards
operations budget of $270,515,400, excluding direct ASI travel, Sunday,
holiday and overtime pay, was used as the base. The annual
appropriations for facilities and equipment and research and
development were also not used in the rate base. The operations budget
contains the following items.
(1) Personnel compensation and benefits, budget code series 1100
(excluding codes 1151 and 1152--overtime, Sunday and holiday pay), 1200
and 1300.
(2) Travel and transportation of persons, budget code series 2100
(excluding code 2100--site visit travel).
(3) Transportation of things, budget code series 2200.
(4) Rental, communications, utilities, budget code series 2300.
(5) Printing and reproduction, budget code series 2400.
(6) Contractual services, budget code series 2500.
(7) Supplies and materials, budget code series 2600.
(8) Equipment, budget code series 3100.
(9) Lands and structures, budget code series 3200.
10. Insurance claims and indemnities, budget code series 4200.
In order to recover overhead costs attributable to providing safety
services, all costs are assigned to the inspector. This is accomplished
by dividing the operations budget of $270,515,400 by 2,694 ASI's on
board at the beginning of FY94. The number 2,694 is taken from the
Flight Standards monthly staffing report and is the total number of
ASI'S in the OMB position series 1825. This division results in an
annual ASI cost of $100,414.03. The annual ASI cost of $100,414,03 is
divided by 2,087 hours, which is the annual paid hours of each federal
government employee. This results in an hourly cost of $48.11 per
``paid hour'' (the actual amount paid by the FAA for each hour of work
performed by an inspector), based on 2,087 paid hours per inspector
year.
This cost of $48.11 per hour does not ensure full recovery of
costs. Inspectors spend a significant amount of time in indirect work
such as training and the preparation of administrative reports, to
support their inspection activities, much of which cannot be allocated
to any one client. In addition, not all 2,087 annual paid hours are
available as work hours. Training, providing technical assistance,
leave, and other factors reduce the work hours that may be directly
billed. Consequently, it is necessary to increase the hourly ASI
government paid amount of $48.11 by an indirect work factor of 1.66 to
arrive at the full cost recovery hourly ASI billing rate.
The indirect work factor of 1.66 is derived as follows. The Flight
Standards Staffing Standard (FAA Order 1380.28B, dated January 15,
1985) uses an indirect work rate of 0.43 to project the amount of time
an ASI spends in indirect work activities, as opposed to certification
and surveillance work, during the year. The indirect work activities
are:
(a) Development of master minimum equipment lists on Flight Operations
Evaluation Board
(b) Development of aircraft training documents on Flight
Standardization Board
(c) Development of Maintenance program documents on Maintenance Review
Board
(d) Providing technical assistance
(e) Assisting legal counsel
(f) Evaluation of technical documents
(g) Leave (all types)
(h) Training
(i) Administrative time
(j) travel for indirect work
Further, OMB guidelines require agencies to use 1,800 average
annual hours available for work and 280 average annual leave hours (all
types of leave) for computing manpower requirements. From the OMB
guidelines, the ratio of yearly leave hours to average annual hours
available for work (280 divided by 1800) is computed at 0.16. Thus, the
indirect work factor for billing purposes is computed using the
following formula:
TP30JN94.000
where:
a=indirect work rate, and
b=leave usage (total leave hours divided by total hours available for
work).
This computation yields an indirect work factor of 1.66, which is
computed from (1+0.43)(1+0.16). The indirect work factor shows that the
FAA actually pays for 1.66 hours for each direct billable hour of ASI
time.
The hourly inspector billing rate is determined by multiplying the
$48.11 hourly government paid rate by the indirect work factor of 1.66
to arrive at the hourly ASI billing rate of $79.81, or $80 rounded to
the nearest dollar. The proposed hourly billing rate of $80 per ASI
hour is applied to airman and repair station certification actions as
follows.
The proposed fixed fees for airman certification were derived by
multiplying the proposed ASI billing rate of $80 by the total time used
in the Flight Standards Staffing Standard or airman test guidelines as
necessary to complete each certification activity. The FAA is not
proposing fixed fees for the certification of air agencies, such as
airman schools and repair stations, because the time involved in
certificating these facilities varies widely and therefore there is no
average staffing standard time.
For certification actions where there is no fixed fee, as air
agency certifications, this notice proposes that applicants, at the
time of application, submit a prepaid deposit at the hourly ASI billing
rate of $80 per hour for the minimum estimated time required to
complete the certification applied for, as determined by the certifying
Flight Standards Office (FSO). When the certification effort is
completed, the applicant would either receive a refund or submit the
additional amount due, depending upon the time actually required for
certification, plus transportation and subsistence expenses.
The charges to applicants by the FAA for inspector transportation
and subsistence expenses, are governed by Federal Travel Regulations,
and would reflect the cost expended by the FAA on the requested
certification action.
Proposed Future Revisions to the Fee Schedule
The FAA plans to review actual costs incurred in the certification
efforts every year, at the beginning of the fiscal year, using the same
fee methodology described above, and, the FAA proposes to amend the fee
schedule on an annual basis to either increase or decrease fees. Each
amended fee schedule would be published in the Federal Register and
published in an FAA Advisory Circular on the subject of Inspector Fees.
The proposed fee schedule that would be established as a result of
this rulemaking is contained in the attached Table to this NPRM.
Fee Collection
For airman certification actions, the FAA would collect the fee at
the time of application for a certification, rating or approval, after
first ascertaining the applicant's eligibility. The FSO or designated
examiner would determine whether the applicant meets the preliminary
eligibility requirements, such as age and currency. If these
requirements are met, the FSO would issue a receipt as evidence of
payment, ensure the deposit of fees into a U.S. Treasury approved bank,
and forward the fee deposit information to the regional accounting
office serving the area.
Under this NPRM, payments for services rendered by FAA inspectors
would have to be in the form of a check, money order, draft, or wire
transfer, and would have to be payable in U.S. currency to the FAA and
drawn on a U.S. bank. Bank processing fees may also be added to the
fees charged to applicants, where such processing fees are charged to
U.S. Government accounts. No application would be acted upon until
evidence of payment by the applicant has been presented.
Generally, there would be no refund of any fee paid for FAA
certification services, including fees paid for any airman test,
approval, or authorization that an applicant fails to pass. However, if
an applicant notifies the FAA of a test cancellation at least one week
prior to a scheduled examination, the FAA would refund the fee after
deducting a minimal service charge to cover the cost of processing the
application.
In the case of a request for airman certification and repair
station facility certifications (air agency certification), applicants
would submit as prepayment a deposit in the amount specified by the
certifying FSO. This prepayment would be based on the estimated minimum
number of hours that an ASI would need to certificate the facility, as
determined by the FSO performing the service. The hourly rate to be
paid for the inspector's time would be the rate specified in Appendix A
of Part 187. If the cost to complete the certification is less than the
amount prepaid by the applicant, the FAA would submit to the applicant
a refund to cover the difference between the prepayment and the actual
charges. Conversely, if the cost is greater, the applicant would be
required to submit the additional charges. As in the case of airman
certificates, applicants for air agency certification would have to pay
the required fees, regardless of whether an FAA certificate is issued.
Comparison of FAA Proposal With International Civil Aviation
Organization (ICAO) and European Joint Aviation Authority (JAA)
Regulations
ICAO does not perform airman or agency certification actions of the
type proposed by the FAA in this NPRM.
The JAA currently has not completed writing its operations
regulations and, therefore, has no airman charges at this time. For
foreign repair station certification, the JAA has announced a charge of
$1,000 per non-European facility. The charge will be assessed
irregardless of an inspection visit. Within Europe, JAA certificates
are issued by the appropriate Civil Aviation Authority (CAA) of the JAA
member country and applicants are charged according to the fees of that
CAA. Two examples of fees for comparable services provided by the CAA's
of JAA member countries follow.
The United Kingdom CAA hourly inspector rate is 147,
which is approximately $297 U.S. per inspector hour. Repair station
certification charges range from 442 to 3,180
($884 to $6,360 U.S.). Additional hourly charges may be assessed.
Actual transportation and subsistence costs are added for facilities
located outside the U.K. These charges include a 7.5% profit on
certification actions.
The German LBA repair station charges range from 800 to 7,000
Deutsche Marks (DM), which is approximately $479 to $4,191 U.S.
Transportation costs are also added.
Paperwork Reduction Act
There are no reporting or recordkeeping requirements associated
with this NPRM.
Regulatory Evaluation Summary
Executive Order 12866 established the requirement that, within the
extent permitted by law, a Federal regulatory action may be undertaken
only if the potential benefits to society for the regulation outweigh
the potential costs to society. In response to this requirement, and in
accordance with Department of Transportation policies and procedures,
the FAA has estimated the anticipated benefits and costs of this
rulemaking action. The FAA has determined that this proposed rule is
not a ``significant rulemaking action,'' as defined by Executive Order
12866 (Regulatory Planning and Review). The results are summarized in
this section.
This proposed rule would not impose any additional costs on any
members of society other than those requesting FAA certification
services outside the United States. The proposed rules, if implemented
as final rules, would reimburse the FAA for the cost of services
currently being provided to the users. Thus, the beneficiaries, rather
than the general taxpayers, would pay for the services provided by the
FAA. The FAA has determined that the proposed fees are equitable and
reflect the cost of providing these services. The benefits of this NPRM
would therefore be the elimination of the need for general revenues by
the FAA to cover the costs of these services provided by the FAA.
Regulatory Flexibility Determination
The Regulatory Flexibility Act of 1980 (RFA) was enacted by
Congress to ensure that small entities are not unnecessarily burdened
by government regulations. The RFA requires agencies to consider the
impact of proposed rules on small entities, that is, small businesses,
nonprofit organizations, and local governments. If there is a
significant impact on a substantial number of small entities, the
Agency must prepare a draft Regulatory Flexibility Analysis (RFA) for
the NPRM and a final RFA for the final rule.
The proposed rule would primarily affect general aviation pilots
and foreign repair stations. The RFA applies neither to individuals nor
foreign entities. Therefore, a RFA is not required.
International Trade Impact
This proposed rule would affect primarily general aviation pilots
and foreign repair stations. The proposal would have a favorable
competitive impact on U.S. repair stations by removing the subsidy that
the FAA has provided to foreign repair stations in the form of lower
charges for certification services. The NPRM would enhance the
competitiveness of domestic firms.
Federalism Implications
The regulations proposed herein would not have substantial direct
implications 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 12866, it is determined that this
proposal would not have sufficient federalism implications to warrant
the preparation of a Federalism Assessment.
Conclusion
For the reasons discussed in the preamble, and based on the
findings in the Regulatory Flexibility Determination and the
International Trade Impact Analysis, the FAA has determined that this
proposed regulation is nonsignificant under Executive Order 12866. In
addition, the FAA certifies that this proposal, if adopted, will not
have a significant economic impact, positive or negative, on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act. This proposal is not considered significant
under Order DOT 2100.5, Policies and Procedures for Simplication,
Analysis, and Review of Regulations. A draft regulatory evaluation of
the proposal, including a Regulatory Flexibility Determination and
International Trade Impact Analysis, has been placed in the docket. A
copy may be obtained by contacting the person identified under FOR
FURTHER INFORMATION CONTACT.
List of Subjects in 14 CFR Part 187
Administrative practice and procedure, Air transportation, Federal
Aviation Administration.
The Proposed Amendment
In consideration of the foregoing, the Federal Aviation
Administration proposes to amend part 187 of the Federal Aviation
Regulations (14 CFR part 187) as follows:
PART 187--FEES
1. The authority citation for part 187 continues to read as
follows:
Authority: Sec. 501, 65 Stat. 290; 31 U.S.C. 9701; secs. 301,
302, 303, 305, 307, 313, 314; 72 Stat. 744, 747, 749, 752, 754; 49
U.S.C. 341, 1343, 1344, 1346, 1348, 1354, 1355.
2. Section 187.15 is amended by designating the current text as
paragraph (a) and by adding paragraphs (b) and (c), to read as follows:
Sec. 187.15 Payment of fees.
(a) * * *
(b) The fees prescribed in Appendix A of this part may be paid by
wire transfer.
(c) Applicants for the FAA services described in Appendix A of part
187 shall pay bank processing charges, when such charges are assessed
by banks on U.S. Government deposits.
3. Appendix A to part 187 is revised to read as follows:
Appendix A to Part 187--Methodology for Computation of Fees for
Certification Services Performed Outside the United States
(a) Fixed fees and hourly rates have been derived using the
methodology described below to ensure full cost recovery for
certification actions or approvals provided by the FAA for persons
outside the United States.
(b) These rates are based on aviation safety inspector time
rather than calculating a separate rate for managerial or clerical
time because the inspector is the individual performing the actual
service. Charging for inspector time, while building in all costs
into the rate base, provides for efficient cost recovery and time
measurement.
(c) The hourly billing rate has been determined by using the
annual operations budget of the Flight Standards Service. The budget
is comprised of the following:
(1) Personnel compensation and benefits, budget code series 1100
(excluding codes 1151 and 1152--overtime, Sunday and holiday pay),
1200, and 1300.
(2) Travel and transportation of persons, budget code series
2100 (excluding code 2100--site visit travel).
(3) Transportation of things, budget code series 2200.
(4) Rental, communications, utilities, budget code series 2300.
(5) Printing and reproduction, budget code series 2400.
(6) Contractual services, budget code series 2500.
(7) Supplies and materials, budget code series 2600.
(8) Equipment, budget code series 3100.
(9) Lands and structures, budget code series 3200.
(10) Insurance claims and indemnities, budget code series 4200.
(d) In order to recover overhead costs attributable to the
budget, all costs other than direct inspector transportation and
subsistence, overtime, and Sunday/holiday costs, are assigned to the
number of inspector positions. An hourly cost per inspector is
developed by dividing the annual Flight Standards Operations Budget,
excluding the items enumerated above, by the number of aviation
safety inspections (OMB position series 1825) on board at the
beginning of the fiscal year, to determine the annual cost of an
aviation safety inspector. This annual cost of an aviation safety
inspector is divided by 2,087 hours, which is the annual paid hours
of a U.S. Federal Government employee. This results in the hourly
government paid cost of an aviation safety inspector.
(e) To ensure that the hourly inspector cost represents a
billing rate that ensures full recovery of costs, the hourly cost
per inspector must be multiplied by an indirect work factor to
determine the hourly inspector billing rate. This is necessary for
the following reasons:
(1) Inspectors spend a significant amount of time in indirect
work to support their inspection activities, much of which cannot be
allocated to any one client.
(2) Not all 2,087 annual paid hours are available as work hours
because training, providing technical assistance, leave, and other
indirect work activities reduce the work time that may be directly
billed. Consequently, the hourly cost per inspector must be adjusted
upwards by an indirect work factor. The calculation of an indirect
work factor is discussed below.
(f) The indirect work factor is determined using the following
formula:
TP30JN94.001
where:
a=indirect work rate, and
b=leave usage (total leave hours divided by total hours available
for work).
The components of the formula are derived as follows.
(1) a=indirect work rate. Indirect work rate is taken from the
Flight Standards Staffing Standard Order and is used to project the
amount of time an aviation safety inspector spends in indirect
activities, as opposed to certification and surveillance work. The
indirect work activities are:
(i) Development of master minimum equipment lists on Flight
Operations Evaluation Board.
(ii) Development of aircraft training documents on Flight
Standardization Board.
(iii) Development of Maintenance program documents on
Maintenance Review Board.
(iv) Providing technical assistance.
(v) Assisting legal counsel.
(vi) Evaluation of technical documents.
(vii) Leave (all types).
(viii) Training.
(ix) Administrative time.
(x) Travel for indirect work.
(2) b = leave usage (total leave hours divided by total hours
available for work). This is computed by using OMB guidelines of 280
average annual hours leave hours and 1,800 average annual hours
available for work for computer manpower requirements.
(g) The hourly inspector cost, when multiplied by the indirect
work factor, yields the hourly inspector billing rate and ensures
full cost recovery by incorporating the total amount of FAA paid
hours needed to produce one hour of direct billable inspector time.
(h) Certifications and approvals for which there are fixed
times, such as a airmen tests, are determined by multiplying the
time used in the Flight Standards Staffing Standard or airman test
guidelines by the inspector hourly billing rate.
(i) Certifications and approvals for which there are no fixed
work rates, such as airman, and repair station facilities (air
agencies), are billed at the hourly inspector billing rate.
(j) Actual transportation and subsistence expenses incurred in
certification or approval actions will be billed in addition to the
hourly inspector billing rate, where such expenses are incurred.
(k) In no event will the fees exceed the actual costs of
providing certification or approval services.
(l) The methodology for computing user fees is published in 14
CFR part 187, Appendix A. The User fee schedule will be published in
an FAA Advisory Circular entitled ``Flight Standards Service
Schedule of Charges Outside the United States.''
(m) Fees will be reviewed every year, at the beginning of the
fiscal year, and adjusted either upward or downward in order to
reflect the current costs of performing tests authorizations,
certifications, permits, or ratings.
(1) Notice of any changes to the user fee schedule will be
published in the Federal Register.
(2) Notice of any changes to the methodology for computing the
user fees will be published in the Federal Register.
Issued in Washington, DC on June 24, 1994.
William J. White,
Acting Director, Flight Standards Service.
Appendix to the Proposed Rule
Table.--Proposed Flight Standards Service Schedule of Charges Outside the United States
[Federal Aviation Administration Flight Standards Service Schedule of Charges Outside the United States]
----------------------------------------------------------------------------------------------------------------
Category of service 14 CFR reference Charge Rate Time
----------------------------------------------------------------------------------------------------------------
1. Transportation and Subsistence
Charges, All Categories of Services
Transportation and subsistence will be ..................... Actual cost.......... ........... ...........
assessed to applicants in addition to
the charge published below for
certification actions requiring travel
from the duty station city.
II. Airman Certification, All Categories
of Airmen
Authorizations for written or practical Parts 61, 63 65...... $40 80 0.5
tests unless specified below.
Special medical check................... Part 67.............. $160 80 2
FA Act Section 609 re-exam.............. Parts 61, 63, 65..... $208 80 2.6
Inspector review for all tests, Part 61, 63, 65...... $40 80 0.5
approvals, ratings given by designated
examiners and evaluators.
Pilots
Written tests, including: tests for
initial issue or renewal of a
certificate of rating; restriction and
limitation removals, determination of
knowledge based on military experience
in the categories below:
Private pilot....................... Part 61.103.......... $40 80 0.5
Recreation pilot.................... Part 61.96........... $40 80 0.5
Commercial pilot.................... Part 61.123.......... $40 80 0.5
Airline Transport pilot............. Part 61.153 or Part $40 80 0.5
61.159.
Instrument Rating................... Part 61.65 or Part $40 80 0.5
6l.75.
Flight Instructor: ..................... $40 80 0.5
(a) Fundamental of Instructing.... Part 61.183.......... $40 80 0.5
(b) Written, other than gyroplane. Part 61.183.......... $40 80 0.5
(c) Written for gyroplane......... Part 61.183.......... $40 80 0.5
Ground Instructor................... Part 143.3........... $40 80 0.5
Practical tests (oral, flight, simulated
flight increments, or combinations),
for initial award or renewal of a
certificate or training, restriction
and limitation removals, determination
of knowledge based on military
experience in the categories below:
Student pilot....................... Part 61.83........... $32 80 0.4
Recreational pilot.................. Part 61.96(e)........ $0 80 0
Private pilot....................... Part 61.103.......... $248 80 3.1
Commercial pilot.................... Part 61.123.......... $248 80 3.1
Commercial pilot limited to VFR..... Part 61.129(a)....... $248 80 3.1
Commercial pilot reissue certificate Part 61.11........... $248 80 3.1
Airline transport pilot............. Part 61.157 or Part $400 80 5
61.163.
Airline transport pilot, applicant Part 61.157 or Part $400 80 5
without IFR rating. 61.163 or Part 61.65.
Replacement of a lost or destroyed Part 61.29........... $0 80 0
certificate.
Instrument rating................... Part 61.65 or Part $256 80 3.2
61.75.
Flight instructor:
(a) Instrument rating............. Part 61.191 or Part $288 80 3.6
61.65.
(b) Added category rating......... Part 61.191 or Part $248 80 3.1
61.63.
(c) Added class rating............ Part 61.191 or Part $248 80 3.1
61.63.
(d) Renewal....................... Part 61.197.......... $160 80 2
(e) Reinstatement................. Part 61.199(b)....... $160 80 2
Ground instructor................... Part 143.3........... $40 80 0.5
Type rating with instrument rating.. Part 61.63 or Part $368 80 4.6
61.157 or Part
61.163.
Type rating without instrument Part 61.63........... $368 80 4.6
rating.
Category rating..................... Part 61.63 or Part $368 80 4.6
61.165.
Class rating........................ Part 61.63........... $368 80 4.6
Special purpose pilot on basis of Part 61.75........... $68 80 0.85
foreign certificate.
Special purpose pilot on basis of Part 61.77(e)(4)..... $68 80 0.85
aircraft lease.
Pilot proficiency check--12 month... Part 61.58(b)........ $296 80 3.7
Pilot proficiency check--24 month... Part 61.58(c)........ $296 80 3.7
Instrument competency check......... Part 61.57........... $320 80 4
Statement of demonstrated ability... Part 61.13(d)........ $320 80 4
Category II authorization........... Part 61.57........... $320 80 4
Category III authorization.......... Part 61.58........... $320 80 4
Pilot-in-command in lieu of type Part 61.31(b) or Part $464 80 5.8
rating (LOA) authorization. 61.31(h)(3).
Aerobatic competence authorization.. Part 91.............. $320 80 4
Pilot knowledge/skill authorization. Parts 91, 125, 133, $320 80 4
135, 137.
Flight instructor simulator Parts 121,135........ $320 80 4
authorization.
Flight Engineers
Written tests, including: initial, Part 63.35 (a) & (b). $40 80 0.5
renewal, added ratings, restriction
removals, reissuances, and tests based
on military competence.
Practical tests (oral, flight, or Part 63.33(b)(1)..... $400 80 5
combined) for initials, renewals, added
ratings, simulators, restriction
removals, reissuances.
Special purpose flight engineer based on Part 63.42........... $68 80 0.85
foreign license (initial, renewal, VFR
or IFR, with our without medical).
Special purpose flight engineer Part 63.23........... $68 80 0.85
based on aircraft lease (initial,
renewal, VFR or IFR, with or
without medical).
Flight Navigators
..................... $0 80 ...........
Written tests, including: initial, Part 63.53(a)........ $40 80 0.5
renewal, added ratings, restriction
removals, reissuances, and tests based
on military competence.
Practical tests (oral, flight, or Part 63.57........... $400 80 5
combined) for initials, renewals, added
ratings, simulators, restriction
removals, reissuances, including tests
based on military competency.
Aircraft Dispatchers
Written tests, including: initial, Part 63.55(a)........ $40 80 0.5
renewal, added ratings, restriction
removals, reissuances, and tests based
on military competence.
Practical tests (oral, flight, or Part 65.59........... $400 80 5
combined) for initials, renewals, added
ratings, simulators, restriction
removals, reissuances, including tests
based on military competency--
competency for airplane and helicopter.
Mechanics
Written tests, including: initial, Part 65.71(a), 65.77. $40 80 0.5
renewal, added ratings, restriction
removals, reissuances, and tests based
on military competence--general,
airframe, powerplant.
Practical tests for initials, renewals, Part 65.79........... $504 80 6.3
added ratings, restriction removals,
reissuances--airframe or powerplant.
Inspection Authorization
Inspection Authorization (IA)--initial.. Part 65.91........... $392 80 4.9
Inspection Authorization (IA)--renewal.. Part 65.93........... $72 80 0.9
Repairmen
Initial, renewal, added rating.......... Part 65.101.......... $152 80 1.9
Parachute Riggers
Written tests, including: initial, Part 65.115(a); Part $40 80 0.5
renewal, added ratings, restriction 65.117; Part
removals, reissuances, and tests based 65.119(b).
on military competence--senior or
master.
Practical tests for initials, renewals, Part 65.115(c)....... $440 80 5.5
added ratings, restriction removals,
reissuances, including tests based on
military competency.
Designated Examiners
For all categories--including written
and practical tests, initials, added
ratings, renewals, restriction
removals, reissuances unless specified
below
Pilot examiners: Part 183.23.......... .....................
Large turbine....................... ..................... $960 80 12
Pilot proficiency................... ..................... $440 80 5.5
Written test examiner............... ..................... $640 80 8
Airmen certification representative. ..................... $400 80 5
Other types as the FAA may designate Part 183.11(b)....... $960 80 12
Aircraft dispatch examiner (DADE)....... Part 183.25(f)....... $960 80 12
Flight engineer examiner (DFEE)......... Part 183.25(d)....... $960 80 12
Flight navigator examiner (DFNE)........ Part 183.25(e)....... $960 80 12
Designated airworthiness Representative Part 183.33.......... $440 80 5.5
(DAR)--initial.
Designated airworthiness Representative Part 183.33.......... $160 80 2
(DAR)--renewal.
Designated Mechanic Examiner (DME)-- Part 183.25(a)....... $504 80 6.3
initial.
Designated Mechanic Examiner (DME)-- Part 183.25(a)....... $184 80 2.3
renewal.
Designated Parachute Rigger Examiner Part 183.25(b)....... $504 80 6.3
(DPRE)--initial.
Designated Parachute Rigger Examiner Part 183.25(b)....... $184 80 2.3
(DPRE)--renewal.
Other designees as the FAA may designate Part 183.11(b)....... $504 80 6.3
III. Air Agencies
Repair station certification/approval/ Part 145, Subpart C.. $80 per inspector per ........... ...........
authorization actions. hour.
Pilot school certification/approval/ Part 141............. $80 per inspector per ........... ...........
authorization actions. hour.
Airmen training centers certification/ Proposed Part 142.... $80 per inspector per ........... ...........
approval/authorization actions. hour.
Aviation maintenance technical schools Part 147............. $80 per inspector per ........... ...........
certification/approval/authorizing hour.
actions.
-----------------------------------------
1-Feb-94
----------------------------------------------------------------------------------------------------------------
[FR Doc. 94-15968 Filed 6-29-94; 8:45 am]
BILLING CODE 4910-13-M