[Federal Register Volume 64, Number 3 (Wednesday, January 6, 1999)]
[Rules and Regulations]
[Pages 958-961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-128]


      

[[Page 957]]

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Part III





Department of Transportation





_______________________________________________________________________



Federal Aviation Administration



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14 CFR Parts 121, 135, and 145



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

  Federal Register / Vol. 64, No. 3 / Wednesday, January 6, 1999 / 
Rules and Regulations  

[[Page 958]]



DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 121, 135, and 145

[Docket No. FAA-1998-4654; Amendment No. SFAR 36-7; Notice No. 98-15]
RIN 2120-AG64


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

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This final rule amends and extends Special Federal Aviation 
Regulation (SFAR) No. 36, which provides that holders of authorized 
repair station or aircraft operating certificates may approve aircraft 
products or articles for return to service after accomplishing major 
repairs using self-developed repair data that have not been directly 
approved by the FAA. Extension of the regulation continues to provide, 
for those that qualify, an alternative from the requirement to obtain 
direct FAA approval of major repair data on a case-by-case basis.

EFFECTIVE DATE: January 23, 1999.

FOR FURTHER INFORMATION CONTACT: Carol Martineau, Policy and Procedures 
Branch, Aircraft Engineering Division, AIR-110, Federal Aviation 
Administration, 800 Independence Ave., SW., Washington, DC 20591, 
telephone: (202) 267-9568.

SUPPLEMENTARY INFORMATION: 

Availability of Final Rules

    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's electronic bulletin 
board service (telephone: 202-512-1661), or 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 Government Printing Office's webpage at 
http://www.access.gpo.gov/nara for access to recently published 
rulemaking documents.
    Any person may obtain a copy of this final rule by submitting a 
request to the Federal Aviation Administration, Office of Rulemaking, 
ARM-1, 800 Independence Avenue, SW., Washington, DC 20591, or by 
calling (202) 267-9680. Communications must identify the amendment 
number or docket number of this final rule.
    Persons interested in being placed on the mailing list for future 
Notices of Proposed Rulemaking and Final Rules should request from the 
above office a copy of Advisory Circular No. 11-2A, Notice of Proposed 
Rulemaking Distribution System, that describes the application 
procedure.

Small Entity Inquiries

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) requires the FAA to report inquiries from small entities 
concerning information on, and advice about, compliance with statutes 
and regulations within the FAA's jurisdiction, including interpretation 
and application of the law to specific sets of facts supplied by a 
small entity.
    If you are a small entity and have a question, contact your local 
FAA official. If you do not know how to contact your local FAA 
official, you may contact Charlene Brown, Program Analyst Staff, Office 
of Rulemaking, ARM-27, Federal Aviation Administration, 800 
Independence Avenue, SW., Washington, DC 20591, 1-888-551-1594. 
Internet users can find additional information on SBREFA in the ``Quick 
Jump'' section of the FAA's web page at http://www.faa.gov and may send 
electronic inquiries to the following Internet address: 9-AWA-
[email protected].

Background

    Notice No. 98-15, Special Federal Aviation Regulation No. 36. 
Development of Major Repair Data, was published in the Federal Register 
on November 2, 1998. The comment period closed December 2, 1998. No 
comments were received. The FAA proposed to extend the termination date 
of and amend Special Federal Aviation Regulation (SFAR) No. 36, which 
allows authorized certificate holders (domestic repair stations, and 
carriers, air taxi operators of large aircraft, and commercial 
operators of large aircraft) to approve aircraft products and articles 
for return to service after accomplishing major repairs using data 
developed by the holder that have not been directly approved by the 
FAA. Currently, more than 25 air carrier and domestic repair station 
certificate holders have SFAR 36 authorizations that will expire on 
January 23, 1999.

History

    Prior to the adoption of SFAR 36, certificate holders that were 
qualified to make repairs were required to obtain FAA approval on a 
case-by-case basis for data they had developed to perform major 
repairs. The only alternative to the time-consuming, case-by-case 
approval method was to petition for and obtain an exemption granting 
relief from the regulation. The number of exemptions being granted 
indicated that revisions to the regulations were necessary; SFAR 36 was 
adopted on January 23, 1978, as an interim rulemaking action. Adoption 
of the SFAR eliminate the requirement for authorized certificate 
holders to petition for exemption from the regulation, and allowed the 
FAA additional time to obtain the information necessary to develop a 
permanent rule change. Most of the affected certificate holders, 
however, did not use the provisions of SFAR 36 until it was well into 
its second year an nearing its expiration date of January 23, 1980. 
Since the FAA did not yet have sufficient data upon which to base a 
permanent rule change, the termination date for SFAR 36 was extended to 
January 23, 1982. To date, SFAR 36 has been extended four times.
    On October 22, 1998, the Aviation Rulemaking Advisory Committee 
(ARAC) submitted a proposal for permanent regulatory action to the FAA. 
The proposal detailed a means of establishing an Organization 
Designation Authorization program which would expand and further 
standardize the approval functions of the FAA designee system and 
proposed that certain functions and procedures, including those covered 
by SFAR 36, be terminated and that current authorization holders be 
allowed to apply for an Organization Designation Authorization. SFAR 36 
is being extended an additional 5 years to allow time for the ARAC 
proposal to be fully developed and implemented.

Synopsis of the Rule

Section 1

    Aircraft ``product,'' ``article,'' and ``component'' are defined 
for the purpose of the SFAR. The definitions clarify the scope of an 
authorization holder's return to service authority.

Section 2

    Paragraph (a) of section 2 describes the general provisions of the 
current SFAR applicable to the individual types of eligible certificate 
holders. This final rule amends paragraph (a) to reflect changes in the 
regulations as a result of the Commuter Rule, which became effective on 
December 20, 1995. Paragraph (b) of section 2 is deleted and reserved 
to remove references to part 127. Part 127 was removed from the

[[Page 959]]

regulations when the Commuter Rule became effective. Paragraph (c) of 
section 2 states that an SFAR 36 authorization does not expand the 
scope of authority of a repair station certificate holder, for example, 
the authorization does not give a repair station return to service 
authority for any article for which it is not rated, nor can the 
authorization change the articles a repair station is rated to repair.

Section 3

    Section 3 states that an authorized certificate holder may approve 
an aircraft product or article for return to service after 
accomplishing a major repair, using data not approved by the 
Administrator, only in accordance with the amended SFAR. Section 3 
requires that the data used to perform the major repair be developed 
and ``approved'' in accordance with the holder's authorization and 
procedures manual. Section 3 also permits an authorization holder to 
use its developed repair data on a subsequent repair of the same type 
of product or article. For each subsequent repair, the holder must 
determine that accomplishment of the repair, using previously developed 
data, will return the product or article to its original or properly 
altered condition and will confirm to all applicable airworthiness 
requirements. In addition, each subsequent use of the data must be 
recorded in the authorization holder's SFAR records.

Section 4

    Section 4 describes the procedures for applying for an SFAR 36 
authorization.

Section 5

    Section 5 identifies the requirements a certificate holder must 
meet to be eligible for an SFAR 36 authorization. This final rule 
amends Paragraph (a)(1) to delete the reference to part 127 and section 
135.2, which were removed from the regulations when the Commuter Rule 
became effective on December 20, 1995. Paragraphs (a)(2), (a)(3), and 
(b) define the personnel required. Paragraph (c) contains the reporting 
requirement of the current SFAR that pertains to changes that could 
affect the holder's continuing ability to meet the SFAR requirements.

Section 6

    Section 6 describes the requirement for an approved procedures 
manual and what information the procedures manual must contain. 
Paragraph (c) of section 6 requires that an authorization holder that 
experiences a change in procedures or staff obtain and record FAA 
approval of the change in order to continue to approve products or 
articles for return to service under the SFAR.

Section 7

    Section 7 sets forth the duration of the authorization. All 
authorizations issued under this SFAR will terminate upon expiration of 
the SFAR unless earlier surrendered, suspended, revoked, or otherwise 
terminated. The final rule extends the duration until January 23, 2004.

Section 8

    Section 8 prohibits the transfer of an SFAR 36 authorization.

Section 9

    Section 9 retains the current inspection provisions. It also 
emphasizes that the FAA must be able to determine whether an applicant 
has, or a holder maintains, personnel adequate to comply with the 
provisions of the SFAR and any additional limitations contained in the 
authorization.

Section 10

    Section 10 states that an SFAR 36 authorization does not expand the 
scope of products or articles that an aircraft operator or repair 
station is authorized to approve for return to service.

Section 11

    Section 11 contains the provision that each SFAR 36 authorization 
holder must comply with an additional limitations prescribed by the 
Administrator and made a part of the authorization.

Sections 12 and 13

    Sections 12 and 13 address data review and service experience 
requirements and record keeping requirements. Section 12 states the 
circumstances under which an authorization holder will be required to 
submit the information necessary for corrective action on a repair. 
Section 13 describes what information an authorization holder's records 
must contain.
    As noted above, the expiration date for SFAR 36 is January 23, 
2004. The 5-year extension would allow time for the FAA to act upon the 
proposal submitted by the ARAC for establishment of an Organization 
Designation Authorization.
    The extension of SFAR 36 would allow uninterrupted major repair 
activity by the current authorization holders that qualify under the 
amended SFAR; those authorizations would be extended without the 
holders reapplying for authorization. The extension would also allow a 
new, qualified applicant to obtain an authorization.

Paperwork Reduction Act

    Information collection requirements in SFAR 36-7 have been approved 
by the Office of Management and Budget (OMB) under the provisions of 
the Paperwork Reduction Act of 1995 and have been assigned the OMB 
Control Number 2120-0507. The primary purpose of this final rule is to 
extend SFAR 36. No additional paperwork burden would be created as a 
result.

International Compatibility

    The FAA has determined that a review of the Convention on 
International Civil Aviation Standards and Recommended Practices is not 
warranted because there is no comparable rule under ICAO standards.

Regulatory Evaluation

    Proposed changes to Federal regulations must undergo several 
economic analyses. First, Executive Order 12866 directs that each 
Federal agency shall propose or adopt a regulation only upon a reasoned 
determination that the benefits of the intended regulation justify its 
costs. Second, the Regulatory Flexibility Act of 1980 requires agencies 
to analyze the economic impact of regulatory changes on small entities. 
Third, the Office of Management and Budget directs agencies to assess 
the effects of regulatory changes on international trade. And fourth, 
the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires 
agencies to prepare a written assessment of the costs, benefits and 
other effects of proposed or final rules that include a Federal mandate 
likely to result in the expenditure by State, local or tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more annually (adjusted for inflation).
    In conducting these analyses, the FAA has determined that the 
extension of Special Federal Aviation Regulation No. 36 (SFAR 36): (1) 
would generate benefits that justify its costs; (2) is not a 
significant regulatory action under section 3(f) of the Executive Order 
and is not subject to review by the Office of Management and Budget; 
(3) is not significant as defined in DOT's regulatory policies and 
procedures (44 FR 11034; February 26, 1979); (4) would not have a 
significant impact on a substantial number of small entities; (5) would 
not affect international trade; and (6) does not contain a significant 
intergovernmental or private sector mandate. These analyses, available 
in the docket, are summarized below.

[[Page 960]]

Regulatory Evaluation Summary

    This final rule extends the provisions of the existing SFAR 36 for 
a five-year period. Therefore, there are no costs associated with this 
final rule to either the industry or to the FAA.
    The benefit of the final rule is that it allows the firms currently 
operating under the provisions of SFAR 36 to continue to do so, thereby 
avoiding the costs that would be incurred if SFAR 36 were to expire 
before an extension of the existing SDFAR 36 was implemented.
    Because the final rule has positive, although not quantifiable, 
benefits and no costs the FAA has determined that the benefits exceed 
the costs of the final rule.

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a 
principle of regulatory issuance that agencies shall endeavor, 
consistent with the objective of the rule and of applicable statutes, 
to fit regulatory and informational requirements to the scale of the 
business, organizations, and governmental jurisdictions subject to 
regulation.'' To achieve that principle, the Act requires agencies to 
solicit and consider flexible regulatory proposals and to explain the 
rationale for their actions. The Act covers a wide-range of small 
entities, including small businesses, not-for-profit organizations and 
small governmental jurisdictions.
    Agencies must perform a review to determine whether a proposed or 
final rule will have a significant economic impact on a substantial 
number of small entities. If the determination is that it will, the 
agency must prepare a regulatory flexibility analysis as described in 
the Act.
    However, if an Agency determines that a proposed or final rule is 
not expected to have a significant economic impact on a substantial 
number of small entities, section 605(b) of the Act provides that the 
head of the agency may so certify and a regulatory flexibility analysis 
is not required. The certification must include a statement providing 
the factual basis for this determination, and the reasoning should be 
clear.
    There are no costs associated with the final rule. Consequently, 
the FAA certifies that the final rule will not have a significant 
economic impact on a substantial number of small entities.

International Trade Impact Assessment

    Consistent with the Administration's belief in the general 
superiority, desirability, and efficacy of free trade, it is the policy 
of the Administrator to remove or diminish, to the extent feasible, 
barriers to international trade, including both barriers affecting the 
export of American goods and services to foreign countries and those 
affecting the import of foreign goods and services into the United 
States.
    In accordance with that policy, the FAA is committed to develop as 
much as possible its aviation standards and practices in harmony with 
its trading partners.
    This final rule affects only domestic firms. Therefore, there will 
be no impact on international trade.

Federalism Implications

    The regulations herein would not have substantial direct effects on 
the states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 12612, it is determined that this rule would not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 ( the Act), 
enacted as Pub. L. 104-4 on March 22, 1995, requires each Federal 
agency, to the extent permitted by law, to prepare a written assessment 
of the effects of any Federal mandate in a proposed or final agency 
rule that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more (adjusted annually for inflation) in any one year. 
Section 204(a) of the Act, 2 U.S.C. 1534(a), requires the Federal 
agency to develop an effective process to permit timely input by 
elected officers (or their designees) of State, local, and tribal 
governments on a proposed ``significant intergovernmental mandate.'' A 
``significant intergovernmental mandate'' under the Act is any 
provision in a Federal agency regulation that will impose an 
enforceable duty upon State, local, and tribal governments, in the 
aggregate, of $100 million (adjusted annually for inflation) in any one 
year. Section 203 of the Act, 2 U.S.C. 1533, which supplements section 
204(a), provides that before establishing any regulatory requirements 
that might significantly or uniquely affect small governments, the 
agency shall have developed a plan that, among other things, provides 
for notice to potentially affected small governments, if any, and for a 
meaningful and timely opportunity to provide input in the development 
of regulatory proposals.
    The FAA determines that this rule does not contain a significant 
intergovernmental or private sector mandate as defined by the Act.

List of Subjects

14 CFR Part 121

    Air carriers, Airworthiness directives and standards, Aviation 
safety, Safety.

14 CFR Part 135

    Air carriers, Air taxis, Air transportation, Aircraft, Airmen, 
Airplanes, Airworthiness, Aviation safety, Helicopters, Safety.

14 CFR Part 145

    Air carriers, Air transportation, Aircraft, Aviation safety, 
Safety.

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends Title 14 of the Code of Federal Regulations parts 
121, 135, and 145 as follows:

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

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

    Authority: 49 U.S.C. 106(g), 40113, 40119, 44101, 44701-44702, 
44705, 44709-44711, 44713, 44716-44717, 44722, 44901, 44903-44904, 
44912, 46105.

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

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

    Authority: 49 U.S.C. 106(g), 44113, 44701-44702, 44705, 44709, 
44711-44713, 44715-44717, 44722.

PART 145--REPAIR STATIONS

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

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

    4. Special Federal Aviation Regulation No. 36 in part 121 and 
referenced in parts 135 and 145 is amended by revising paragraphs 2(a), 
3(a)(1), 5(a)(1), and 7 introductory text; by reserving paragraph 2(b) 
and by revising the termination date to read as follows:

SFAR No. 36

* * * * *
    2. General. (a) Contrary provisions of Sec. 121.379(b) and 
Sec. 135.437(b) of this chapter notwithstanding, the holder of

[[Page 961]]

an air carrier certificate or operating certificate, that operates 
large aircraft, and that has been issued operations specifications for 
operations required to be conducted in accordance with 14 CFR part 121 
or 135, may perform a major repair on a product as described in 
Sec. 121.379(b) or Sec. 135.437(a), using technical data that have not 
been approved by the Administrator, and approve that product for return 
to service, if authorized in accordance with this Special Federal 
Aviation Regulation.
    (b) Reserved.
* * * * *
    3. Major Repair Data and Return to Service. (a) * * *
    (1) Has been issued an authorization under, and a procedures manual 
that complies with, Special Federal Aviation Regulation No. 36-7, 
effective on January 23, 1999;
* * * * *
    5. Eligibility. (a) * * *
    (1) Hold an air carrier certificate or operating certificate, 
operate large aircraft, and have been issued operations specifications 
for operations required to be conducted in accordance with 14 CFR part 
121 or 135, or hold a domestic repair station certificate under 14 CFR 
part 145;
* * * * *
    7. Duration of Authorization. Each authorization issued under this 
Special Federal Aviation Regulation is effective from the date of 
issuance until January 23, 2004, unless it is earlier surrendered, 
suspended, revoked, or otherwise terminated. Upon termination of such 
authorization, the terminated authorization holder must:
* * * * *
    This Special Federal Aviation Regulation terminates January 23, 
2004.
Jane F. Garvey,
Administrator.
[FR Doc. 99-128 Filed 1-5-99; 8:45 am]
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