[Federal Register Volume 66, Number 151 (Monday, August 6, 2001)]
[Rules and Regulations]
[Pages 41088-41124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19362]



[[Page 41087]]

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Part II





Department of Transportation





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Federal Aviation Administration



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14 CFR Parts 91 et al.



Final Rule With Request for Comments and Direct Final Rule With Request 
for Comments; Final Rule

  Federal Register / Vol. 66, No. 151 / Monday, August 6, 2001 / Rules 
and Regulations  

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 91, 121, 135, and 145

[Docket No. FAA-1999-5836; Amendment Nos. 91-269, 121-286, 135-82, 
145-27, and SFAR 36-7]

RIN 2120-AC38


Repair Stations

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule with request for comments and direct final rule with 
request for comments.

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SUMMARY: This rule updates and revises the regulations for repair 
stations. This action is necessary because many of the current repair 
station regulations do not reflect changes in repair station business 
practices and aircraft maintenance practices. The rule reorganizes the 
requirements applicable to repair stations to reduce duplication of 
regulatory language and eliminate obsolete information. In addition, 
the rule establishes new definitions applicable to repair stations and 
updates requirements relating to repair station certification; housing, 
facilities, equipment, materials, and data; personnel; and operations. 
The rule also eliminates, where practicable, distinctions between 
repair stations based on geographical location. This final rule does 
not adopt the proposed revised repair station ratings and quality 
assurance system; these proposals will be addressed in a subsequent 
rulemaking action. Finally this direct final rule removes the appendix 
to the repair station regulations that sets forth the job functions and 
equipment requirements for repair stations.

DATES: This rule is effective April 6, 2003, with the following 
exceptions: Sec. 145.163 which is effective April 6, 2005, and the 
removal of Appendix A to part 145 which is effective April 6, 2003, 
unless adverse comments are received by October 5, 2001. Comments on 
the information collection requirements must be submitted on or before 
October 5, 2001.

ADDRESSES: Address your comments to the Docket Management System, U.S. 
Department of Transportation, Room Plaza 401, 400 Seventh Street, SW., 
Washington, DC 20590-0001. You must identify the docket number FAA-
1999-5836 at the beginning of your comments, and you should submit two 
copies of your comments. If you wish to receive confirmation that the 
FAA received your comments, include a self-addressed, stamped postcard.
    You may also submit comments through the Internet to http://dms.dot.gov . You may review the public docket containing comments to 
these proposed regulations in person in the Dockets Office between 9:00 
a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. The 
Dockets Office is on the plaza level of the NASSIF Building at the 
Department of Transportation at the above address. Also, you may review 
public dockets on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Diana L. Frohn, Aircraft Maintenance 
Division, Air Carrier Maintenance Branch, AFS-330, Federal Aviation 
Administration, 800 Independence Avenue SW., Washington, DC 20591; 
telephone (202) 493-4941; facsimile (202) 267-5115.

SUPPLEMENTARY INFORMATION: The Direct Final Rule Procedure
    The FAA anticipates that the removal of appendix A to part 145 will 
not result in adverse or negative comments; therefore the FAA is 
removing appendix A as a direct final rule. Comments received in 
response to Notice of Proposed Rulemaking No. 99-09 generally opposed 
appendix A. Many commenters noted that the appendix is outdated. 
Commenters questioned the FAA's ability to keep any such listing 
current. Unless a written adverse or negative comment, or a written 
notice of intent to submit an adverse or negative comment is received 
within the comment period, the removal of appendix A will become 
effective on the date specified above. After the close of the comment 
period, the FAA will publish a document in the Federal Register 
indicating that no adverse or negative comments were received and 
confirming the date on which the direct final rule will become 
effective. If the FAA does receive, within the comment period, an 
adverse or negative comment, or written notice of intent to submit such 
a comment, a document withdrawing the removal of appendix A will be 
published in the Federal Register, and a notice of proposed rulemaking 
may be published with a new comment period.

Comments Invited

    An opportunity for comment on the information collection 
requirements of this rule was not provided during the notice of 
proposed rulemaking stage. Therefore, a 60-day comment period is 
attached to this final rule.
    Also, we have removed appendix A from part 145. Because we did not 
propose to remove appendix A, we seek comments on its removal. 
Generally, the final rule accomplishes the purpose of appendix A 
without restricting a repair station's ability to adapt future 
technologies. The reasons for removing appendix A are explained in 
greater detail in the section-by-section discussion of requirements 
withdrawn from the proposal.
    Interested persons are invited to submit written data, views, or 
arguments regarding the information collection requirements and the 
removal of appendix A as they may desire. 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 
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 FAA before the effective date of the direct final 
rule. Comments filed late will be considered as far as possible without 
incurring expense or delay.
    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 Rulemaking Documents

    You can get an electronic copy using the Internet by taking the 
following steps:
    (1) Go to the search function of the Department of Transportation's 
electronic Docket Management System (DMS) web page (http://dms.dot.gov/search).
    (2) On the search page type in the last four digits of the Docket 
number shown at the beginning of this document. Click on ``search.''
    (3) On the next page, which contains the Docket summary information 
for the Docket you selected, click on the document number for the item 
you wish to view.
    You can also get an electronic copy using the Internet through 
FAA's web page at http://www.faa.gov/avr/arm/nprm/nprm.htm or the 
Federal Register's web page at http://www.access.gpo.gov/su_docs/aces/aces140.html.

[[Page 41089]]

    You can also get a copy 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. Make 
sure to identify the amendment number or docket number of this 
rulemaking.

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires the FAA to comply with small entity requests for 
information or advice about compliance with statutes and regulations 
within its jurisdiction. Therefore, any small entity that has a 
question regarding this document may contact its local FAA official, or 
the person listed under FOR FURTHER INFORMATION CONTACT. You can find 
out more about SBREFA on the Internet at our site, http://www.gov/avr/arm/sbrefa.htm. For more information on SBREFA, e-mail us at [email protected].

Background

    Very few substantive changes have been made to the regulations 
applicable to repair stations since they were recodified in Title 14, 
Code of Federal Regulations (14 CFR) (27 FR 6662, July 13, 1962). 
Portions of 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. In addition, the FAA has 
granted exemptions and created other special administrative procedures 
to handle situations not provided for adequately in the regulations. To 
ensure the regulations are appropriate for today's repair station 
industry, the FAA determined that part 145 should be revised.
    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 47362), that expanded the scope of work 
foreign repair stations (that is, those U.S.-certificated repair 
stations located outside the United States) are authorized to perform. 
The amendment also permitted certain repair stations to contract 
maintenance functions to noncertificated organizations/facilities under 
specific conditions.
    As part of a regulatory review of 14 CFR part 43; 14 CFR part 65, 
subpart E; and part 145, the FAA held four public meetings in 1989 (54 
FR 30866; July 24, 1989). The meetings were held in Washington, D.C.; 
Fort Lauderdale, Florida; Dallas, Texas; and San Francisco, California. 
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, and 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.
    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 (ACs) that relate to repair stations, such as AC No. 
145-3, Guide for Developing and Evaluating Repair Station Inspection 
Procedures Manuals, and AC No. 145-5, Repair Station Internal 
Evaluation Programs; 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. As a result of the above action, the FAA published Notice 
of Proposed Rulemaking No. 99-09, ``Part 145 Review: Repair Stations'' 
(64 FR 33142, June 21, 1999).
    The FAA extended the close of the comment period on Notice No. 99-
09 from October 19, 1999, to December 3, 1999, in response to 
commenters' requests. The FAA received approximately 530 comments in 
response to Notice No. 99-09. Associations representing repair stations 
and other aviation-related entities, unions, aviation authorities, air 
carriers, manufacturers, members of Congress, the National 
Transportation Safety Board (NTSB), and individual repair stations 
provided comments on the proposal.

The Final Rule

    The FAA appreciates the comments received in response to its 
proposal. Many revisions to the proposal are based in part on language 
provided by commenters. The revisions clarify the intent of the rule, 
provide more regulatory flexibility in carrying out the requirements, 
and in some cases lessen regulatory burdens without compromising 
safety.
    This final rule reorganizes and clarifies certain subparts and 
sections of part 145. We have arranged the subparts by subject rather 
than geographic location of the repair station. We also have eliminated 
limited ratings for manufacturer's maintenance facilities and removed 
the corresponding subpart.
    In addition, we have revised the housing and equipment 
requirements. Part 145 no longer requires a repair station with an 
airframe rating to provide permanent housing that encloses at least one 
of the heaviest aircraft within the weight class for which it is rated. 
Instead, a repair station is only required to provide permanent housing 
that encloses the largest type and model of aircraft listed on its 
operations specifications. The final rule also includes provisions for 
exchanging equipment among satellite repair stations and for leasing 
equipment.
    The final rule requires repair stations to develop a repair station 
manual that prescribes its operational procedures. The rule also 
requires repair stations to develop a quality control manual that is 
similar to the currently required inspection procedures manual.
    Although we proposed a new rating and class system, we have 
retained the current rating and class system in the final rule. Also, 
the final rule does not include a quality assurance program. We intend 
to seek advice and recommendations from the affected aviation community 
before promulgating rulemaking on these issues.
    Finally, the final rule provides for satellite repair stations, 
expands the scope of contract maintenance, and requires repair stations 
to develop a training program.
    Because the Administrator of the FAA has delegated various 
responsibilities to offices within the Agency, we have determined it is 
appropriate to replace references to the ``Administrator'' with the 
``FAA.'' Further, in an effort to recognize the use of electronic means 
to store and send information we have removed references to paper 
copies.
    This final rule will become effective 20 months after it is 
published in the Federal Register. This time period is needed to 
develop ACs and internal FAA guidance, and to train FAA personnel. 
Additionally, repair stations will need adequate time to comply with 
the new requirements. The training

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requirements (Sec. 145.163), become effective 24 months after the 
effective date of the final rule. Certificated repair stations will 
need this additional time to develop and submit a training program to 
the FAA for approval. Specific details regarding the deadlines for 
submitting a training program for FAA approval are discussed later.

Section-by-Section Discussion of Requirements Withdrawn From the 
Notice of Proposed Rulemaking

    Based on comments received, we are withdrawing some of the sections 
proposed in the NPRM. Specifically, we are withdrawing advertising 
(proposed Sec. 145.9), deviation authority (proposed Sec. 145.11), 
ratings and classes (proposed Sec. 145.59), transition to new system of 
ratings (proposed Sec. 145.61), quality assurance (proposed 
Sec. 145.201(a)(1)), and job functions (proposed appendix A to part 
145). Below is a section by section discussion of these withdrawn 
requirements.

Proposed Sec. 145.9  Advertising

    Proposed paragraph (a) would have prohibited a repair station from 
advertising as a certificated repair station until the issuance of a 
certificate. Proposed paragraph (b) would have prohibited a repair 
station from making any statement about itself, either orally or in 
writing, that was false or designed to mislead any person. Finally, 
proposed paragraph (c) would have required any advertisement to include 
the repair station's certificate number.
    One association requested that the FAA discuss what constitutes 
advertising for purposes of the proposal. Several commenters 
recommended deleting proposed paragraphs (a) and (b) because Federal 
and State laws adequately protect the public from false and misleading 
advertising. The commenters generally recommended revising proposed 
paragraph (b) because any statement by any individual could be 
misinterpreted and construed to be a violation under the proposed 
language. One commenter suggested revising proposed paragraph (b) to 
prohibit a repair station from misleading individuals with respect to 
ratings, limitations, privileges, and other matters regulated by part 
145. Several commenters, including one association, supported requiring 
a repair station to include its certificate number in advertisements. 
Another commenter stated that including a certificate number in 
advertisements does not increase safety. That commenter noted that 
other certificate holders, such as air carriers and pilot training 
schools, are not required to include certificate numbers in 
advertisements.
    In light of the comments regarding Federal and State laws on false 
and misleading advertising, the FAA has withdrawn proposed 
Sec. 145.9(a) and (b). In addition, the FAA finds that requiring a 
repair station to include its certificate number in any advertising is 
unnecessary and involves a repair station's business decisions in an 
area not related to ensuring safety or the airworthiness of articles. 
The FAA notes that the public has access to a repair station's 
certificate number under Sec. 145.5(b), which requires the certificate 
and operations specifications to be available on the repair station's 
premises for inspection by the public. Therefore, the FAA has not 
included proposed Sec. 145.9 in the final rule.

Proposed Sec. 145.11  Deviation Authority

    The proposal would have established procedures for repair stations 
to apply for deviation authority from the regulations similar to the 
procedures used by manufacturers and operators.
    Many commenters supported deviation authority for repair stations 
as a means of providing regulatory flexibility. However, several 
commenters recommended adding provisions to make the application 
procedure for deviation authority public. In addition, commenters 
indicated that the deviation authority should be processed at the local 
level rather than at FAA Headquarters. Other commenters expressed 
concern over the discretion given to FAA inspectors to terminate or 
amend a letter of deviation authority, which the commenters contended 
could disrupt business. Some of the commenters who opposed the addition 
of deviation authority stated that it would replace the public process 
with a hidden process, benefit large certificated repair stations, and 
provide little or no benefit to small general aviation repair stations.
    When proposed, the FAA envisioned that deviation would be sought 
from only a few sections, in particular the proposed quality assurance 
system and training program requirements. However, as previously noted, 
the FAA intends to propose requirements for quality assurance in a 
subsequent rulemaking action. In addition, the FAA will be issuing 
guidance on the training program requirements and will approve these 
programs on a case-by-case basis. In light of the commenters' concerns 
about granting deviation authority, relief from part 145 regulations 
will continue to be addressed through the 14 CFR part 11 exemption 
process. Exemptions are public actions processed at FAA Headquarters.

Proposed Sec. 145.59  Ratings and Classes

    This proposed section would have significantly revised the current 
system of ratings and classes. The FAA specifically requested comments 
on the proposed regulations and asked whether the proposed system of 
ratings and classes should be addressed in a separate rulemaking.
    Comments on the proposal were mixed. Some commenters found the new 
system confusing and complicated, and others stated that the proposal 
is more restrictive than the current system of ratings and classes. One 
association stated that the proposal merely adds to an outmoded class 
system and offered in its place an alternative ratings system. Other 
commenters criticized specific parts of the proposal, using as an 
example, the weights used to distinguish between aircraft class 
ratings. Some commenters believe that the number of powerplant class 
ratings would be confusing, and recommended instead associating 
powerplant and airframe class ratings.
    Although many commenters believe a separate rulemaking action to 
revise the system of ratings is not necessary, the FAA finds that the 
comments and alternatives received have merit and should be considered 
further before a new system of rating and classes is adopted. 
Therefore, this final rule retains the current rating and class system. 
The comments will be considered during development of the subsequent 
notice of proposed rulemaking.

Proposed Sec. 145.61  Transition to New System of Ratings

    This section proposed procedures for transitioning to the proposed 
system of ratings and has not been included in this final rule.

Proposed Sec. 145.201  Quality Assurance and Quality Control Systems

    Proposed Sec. 145.201(a)(1) would have required a repair station to 
establish a quality assurance system.
    Commenters generally opposed the proposed quality assurance system 
requirements. One association stated that although its members support 
the concept of quality assurance, the FAA has not justified the burden 
of the requirement in terms of safety. Some commenters opposed the 
proposal because the FAA has not adequately described the specific 
requirements. Some of those commenters requested that advisory material 
be issued along with the proposal to allow the public

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adequate opportunity to comment. Four unions expressed support for 
requiring repair stations to have a quality assurance system. Some 
commenters asserted that implementation of a quality assurance system 
would require them to incur significant costs.
    The FAA agrees that the quality assurance program must have 
adequately defined requirements and that guidance material is necessary 
for implementation of an effective system. We also recognizes that 
establishment of a quality assurance system may be particularly 
burdensome for small repair stations. The FAA will review the comments 
submitted on this issue and develop specific requirements for a quality 
assurance program in a subsequent notice of proposed rulemaking.

Proposed Appendix A to Part 145 Job Functions

    Proposed appendix A set forth job functions and equipment 
requirements for repair stations.
    Commenters are generally opposed to appendix A as proposed. Many 
commenters noted that the proposed appendix is already outdated. Still, 
others questioned the FAA's ability to keep any such listing current 
while other commenters offered specific revisions to the equipment 
requirements.
    The FAA agrees with commenters who expressed concern about the 
difficulties in keeping appendix A current; therefore, the agency has 
decided to withdraw appendix A. For the same reason, the FAA has not 
included current appendix A in the final rule. Because the FAA did not 
propose to eliminate appendix A in Notice No 99-09, we seek comments on 
its removal. The final rule will accomplish the purpose of appendix A 
without restricting a repair station's ability to adapt future 
technologies.
    The final rule revises the equipment requirements and the 
contracting out provisions to provide more flexibility for repair 
stations to accomplish maintenance, preventative maintenance, or 
alterations on articles for which they are rated. Revisions to the 
equipment section of the final rule will permit certificated repair 
stations to enter into contracts or other leasing agreements to obtain 
equipment needed in the maintenance of articles for which it is rated. 
Repair stations will no longer have to maintain a seldom used, 
expensive piece of equipment just to retain their current ratings. 
Repair stations and their contract maintenance providers will still be 
required to have the equipment when performing a maintenance function. 
Likewise, the contracting out provisions have been revised to better 
reflect current industry practices in specialized areas. The 
combination of these actions effectively incorporates appendix A in its 
entirety.

Section-by-Section Discussion of the Final Rule

    Below is a section-by-section discussion of the final rule. We have 
provided a brief description of the proposed rule, a summary of the 
comments received, and the FAA's disposition.

Part 145--Repair Stations

Subpart A--General

Section 145.1  Applicability

    Summary of Proposal/Issue: The FAA proposed to revise current 
Sec. 145.1 with respect to obtaining repair station certificates and 
the general rules under which certificated repair stations must 
operate. The FAA proposed to add the term ``preventive maintenance'' 
and proposed to replace the current reference to ``airframes, 
powerplants, propellers, and appliances'' with ``any aircraft, 
airframe, aircraft engine, propeller, appliance, or component part 
thereof.'' The FAA proposed deleting paragraph (b), which delineated 
the term ``domestic'' and ``foreign'' in describing the location of a 
repair station.. As discussed in Notice No.
99-09, the FAA removed, where appropriate, the distinctions between 
repair stations located inside the United States and those located 
outside the United States. In addition, the FAA proposed eliminating 
paragraph (c), which addressed the limited rating for manufacturers.
    Comments: Most commenters supported the FAA's proposed revisions to 
Sec. 145.1. However, several commenters recommended eliminating the 
phrase ``component part thereof'' because of the burden it would place 
on the applicant for a repair station certificate. One commenter 
recommended including the term ``rebuilt'' whenever the term 
``maintenance'' is used.
    With regard to the proposed elimination of the limited rating for 
manufacturers, three unions supported the proposal. Manufacturers 
opposed the elimination of the rating and questioned why a production 
approval holder may perform major repairs and major alterations, but 
under the proposal a separate rating would be required to perform basic 
maintenance. One manufacturer stated that the proposal fails to 
recognize the unique relationship a manufacturer has to its products.
    FAA Response: The FAA made editorial changes to this section in the 
final rule. The FAA revised this section to state that part 145 
contains the rules a certificated repair station must follow with 
respect to the performance of maintenance, preventive maintenance, and 
alterations of an aircraft, airframe, aircraft, engine, propeller, 
appliance, and component part to which part 43 applies. The FAA notes 
that the revised language includes ``component part'' rather than 
``component part thereof;'' the use of ``component part'' is consistent 
with the terminology used in part 43. In addition, the FAA finds that 
the term ``maintenance,'' rather than the term ``rebuilt,'' more 
accurately describes the work performed under this part and is 
consistent with industry use.
    As proposed in Notice No. 99-09, the FAA is eliminating the limited 
rating for manufacturers. 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.
    In response to comments from manufacturers, the FAA finds that 
there is not a significant difference between warranty work (repairs 
made by the manufacturer) and maintenance. The FAA also disagrees with 
the manufacturers assertion that warranty work is an extension of the 
manufacturing process. Once an article completes the manufacturing 
process and receives its type certificate, any repair including 
warranty work must be accomplished per an approved maintenance program. 
The difference between the manufacturer's process and a repair station 
program is the requirement that the article is approved for return to 
service upon completion of maintenance.
    Manufacturers use numerous methods, such a maintenance/material 
review boards (MRB) under 14 CFR part 21, to correct manufacturing 
defects while articles are still in the manufacturing process. Repairs 
made to articles returned to the manufacturer for warranty work could 
constitute a change to the article's type design. Although these 
procedures are acceptable for manufacturers, they do not provide a 
means to return the item to service, for airworthiness release or to 
approve the alteration of a type design. A repair of this type may 
render the item unairworthy since the definition of ``airworthy'' is 
that it meets its type design and is safe for flight.

[[Page 41092]]

    As noted in Notice No. 99-09, the FAA will give full consideration 
to the quality control system established by the manufacturer to comply 
with part 21. However, the manufacturer's repair station will have to 
operate in compliance with parts 43 and 145.

Section 145.3  Definition of Terms

    Summary of Proposal/Issue: For purposes of part 145, the FAA 
proposed to define accountable manager, actual work documents, approve 
for return to service, approved data, article, certificate holding 
district office, certificated, composite, computer system, consortium, 
directly in charge, facility, housing, maintenance release, overhauled, 
and signature.
    Comments: The commenters generally asserted that only terms 
exclusive to part 145 should be defined in part 145. Some of those 
commenters stated that those terms should also be added to 14 CFR part 
1 to ensure they are used consistently throughout the regulations. 
Other commenters stated that any term not exclusive to part 145 should 
be defined only in part 1. However, some commenters asserted that all 
terms should be defined only in part 1. In addition, several commenters 
suggested adding definitions for the following terms: acceptable to the 
Administrator, airworthy, approved by the Administrator, authorized 
inspector, avionics, current as applied to technical information, 
inspection personnel, job functions, line maintenance, maintenance 
functions, product, quality assurance system, quality control system, 
satellite repair station, self evaluation, and supervisory personnel.
    With regard to the definition of ``accountable manager,'' the 
commenters generally are concerned that the accountable manager will be 
held personally liable for business decisions and stated that the 
definition conflicts with provisions in parts 121 and 135 that indicate 
the air carrier or commercial operator has the responsibility for the 
work performed for them by a repair station. The commenters recommended 
clarifying the definition to limit the personal liability of the 
accountable manager. Some commenters suggested the person in this 
position should be the point of contact with the FAA. Other commenters 
recommended changing ``accountable manager'' to ``repair station 
manager.''
    Many commenters expressed concern with the definition of ``actual 
work documents'' and indicated it is easily confused with other terms 
and should be clarified. Some commenters asked whether the word 
``actual'' refers to the original work documents. Several commenters 
noted the word ``detailed'' is ambiguous and allows for individual 
interpretation, and indicated the word ``signed'' should be changed to 
permit other methods to be used, such as stamps, initials, and 
electronic signatures. Several commenters indicated the definition of 
``actual work documents'' is a significant departure from current 
practices and could cause documentation to become extremely burdensome.
    Many commenters opposed the definition of ``approve for return to 
service'' in Sec. 145.3(c). Some of these commenters indicated that the 
definition is unnecessary and repeats or is inconsistent with existing 
regulatory requirements, particularly with regard to parts 43 and 65. 
The commenters proposed revisions to the definition and suggested 
moving it to part 43.
    One manufacturer supported the proposed definition of ``approved 
data'' and six commenters recommended clarifications to that proposed 
definition. Two associations opposed the definition of ``approved 
data'' because it is not consistent with part 1 or SFAR 36.
    Many commenters opposed the definition of ``article'' in 
Sec. 145.3(e). Several commenters stated the definition conflicts with 
the use of ``article'' in SFAR 36 and as it relates to technical 
standard orders.
    Commenters who opposed the definition of ``certificate holding 
district office'' (CHDO) stated the definition is subject to change 
whenever the FAA reorganizes and changes the names of its divisions and 
offices, and expressed concern over its application when multiple 
repair facilities are involved. Several commenters stated that the 
definition should state that the CHDO has responsibility for 
administering the certificate of the repair station.
    Many commenters supported the definition of ``certificated;'' 
however, one commenter suggested clarifications. One association 
opposed the definition and indicated it is redundant and would be more 
appropriately included in part 1.
    Commenters who opposed the definitions of ``composite'' and 
``computer system'' suggested that neither definition is adequate and 
both should be revised and clarified. The commenters provided suggested 
revisions for each definition.
    Most repair stations, manufacturers, and associations who commented 
on the definition of ``consortium'' opposed it. Several commenters 
expressed concern about the economic impact this could have on 
independent repair stations and noted that it appears the FAA is 
providing an economic advantage to type certificate holders. The 
commenters also noted that it appears the FAA is creating a two-tiered 
system of repair stations.
    The commenters generally opposed the definition of ``directly in 
charge'' and offered revisions for clarification. Several other 
commenters noted that Sec. 145.3(k) paraphrases language from part 121, 
and one association stated that if the term is adopted in part 145, it 
should use the same language as that found in part 121. Other 
commenters noted there is confusion as to whether the term applies to 
the oversight of external contractors or only internal operations.
    An association stated the definition of ``facility'' is confusing 
and contradictory, and should be excluded; however, the association 
provided an alternate definition if the Administrator can justify its 
inclusion in the rule. Some commenters recommended revising the 
reference to ``land'' to include public ramp space.
    Commenters generally supported the definition of ``housing'' in 
proposed Sec. 145.3(m)(1) but recommended revisions to the language in 
proposed Sec. 145.3(m)(2). The commenters recommended revising the term 
``structures'' to ``method'' and indicated the term ``segregation'' is 
subjective. Another commenter strongly opposed inclusion of the 
definition of housing in part 145, because it mixes the concepts of 
housing, equipment, and facility.
    Commenters generally did not support the proposed definition of 
``maintenance release.'' Some commenters recommended replacing the term 
``repair station document'' with ``statement'' to clarify that a 
maintenance release is not always a separate document and to ensure the 
requirements are consistent with part 43. One commenter noted that the 
proposed definition is contrary to parts 43, 121, and 135. Another 
commenter indicated that the maintenance release should apply to all 
persons authorized to perform maintenance, preventive maintenance, or 
alteration under 14 CFR and that the release provided in part 43 would 
be acceptable.
    The commenters generally indicated that ``overhauled'' is already 
defined in part 43, and the definition should be moved to part 1.
    Commenters supported the inclusion of a definition for 
``signature'' but generally indicated it should be in part 1. One 
commenter commended the FAA for defining the term ``signature'' but 
stated that because the term has caused serious consternation in the 
industry,

[[Page 41093]]

the FAA should publish advisory material governing acceptable means of 
compliance.
    FAA Response: Based on the comments received, the FAA has not 
included in the final rule definitions of the following: actual work 
documents, approve for return to service, approved data, certificate 
holding district office, certificated, composite, computer system, 
consortium, facility, housing, maintenance release, overhauled, and 
signature. However, the FAA has retained definitions for accountable 
manager, article, directly in charge, and line maintenance.
    The FAA generally agrees that terms not unique to part 145, such as 
``approve for return to service,'' ``approved data,'' ``certificated,'' 
``maintenance release,'' and ``overhauled,'' should not be defined in 
part 145. In addition, the term ``computer system'' is related to the 
proposed rating and class system, and no longer needs to be defined for 
the purposes of part 145. The term ``composite'' is not unique to part 
145, and its common definition is adequate for the purposes of part 
145. The concept of a consortium and references to actual work 
documents are not included in the final rule and therefore no longer 
require definition. Other terms, such as ``facility'' and ``housing,'' 
are adequately described in the particular sections in part 145 that 
address those subjects and do not require further definition. Finally, 
the FAA has removed the definition of ``signature'' from the final 
rule. The FAA notes that it recently has adopted policies and 
procedures to implement the requirements of the Government Paperwork 
Elimination Act, 44 U.S.C. 3504, which defines ``electronic signature'' 
and requires Federal agencies to provide for the option of using 
electronic signatures when practicable.
    The FAA disagrees with commenters who suggest that the term 
``accountable manager'' should be removed from part 145. The FAA has 
determined that it is necessary for a repair station to have one 
individual who is responsible for ensuring repair station operations 
are conducted in accordance with part 145. However, the FAA has revised 
the definition of ``accountable manager'' to clarify that the person in 
this position is responsible for and has authority over only repair 
station operations conducted under part 145. It was not the FAA's 
intent to dictate who is responsible for repair station operations that 
are unrelated to part 145, such as accounting. It also was not the 
intent of the FAA to impose personal liability for repair station 
operations on the accountable manager. The FAA notes that the term 
``accountable manager'' is consistent with JAR terminology, and its use 
is consistent with the FAA's harmonization efforts. Finally, the FAA 
notes that the definition in this final rule states that the 
accountable manager will serve as the primary contact with the FAA as 
suggested by many commenters.
    Although the term ``article'' is used throughout 14 CFR, the FAA 
has determined that it is important to define the term for the purposes 
of part 145 because it encompasses the items on which a repair station 
may perform maintenance. However, the FAA revised the definition so 
that the items listed are consistent with items on which maintenance, 
preventive maintenance, and alterations are performed under part 43.
    The FAA disagrees with commenters who assert that the definition of 
``directly in charge'' should not be placed in part 145 because it is 
used in part 121 and that inconsistencies could arise between the 
definitions. For the convenience of the user and because the definition 
specifically addresses the responsibilities under part 145, the FAA 
decided that the definition should be included in part 145. The FAA 
notes that the definition is consistent with the definition found in 
Sec. 121.378. However, in response to concerns raised by the 
commenters, the FAA revised the definition of ``directly in charge.'' 
The revised definition clarifies that the person is responsible for the 
work of a repair station that performs maintenance, preventive 
maintenance, and alterations, or other functions affecting aircraft 
airworthiness. With regard to the comment regarding work that is 
contracted to an outside source, the FAA notes that Sec. 145.217(b)(2) 
specifically requires that a repair station remain directly in charge 
of the work performed by a noncertificated person.
    In response to commenter requests, the FAA has added the definition 
of ``line maintenance'' to mean any unscheduled maintenance resulting 
from (1) scheduled checks that contain servicing and/or inspections 
that do not require specialized training, equipment, or facilities, or 
(2) unforeseen events. The definition is necessary to clarify the work 
that may be performed under Sec. 145.205(d). The performance of line 
maintenance is further discussed in the analysis of Sec. 145.205(d).

Section 145.5  Certificate and Operations Specifications Requirements

    Summary of Proposal/Issue: Proposed Sec. 145.5(a) would have 
prohibited any person from operating as a certificated repair station 
without a repair station certificate or operations specifications. 
Proposed paragraph (b) stated that a repair station could perform work 
only on articles for which it is rated and within the limitations of 
its operations specifications. In paragraph (c), the FAA proposed to 
revise the current requirement in Sec. 145.19 that a repair station 
display its repair station certificate at a place normally accessible 
to the public. The FAA proposed that the certificate be available for 
inspection by the public and the Administrator. Proposed paragraph (d) 
would have specified the contents of a repair station's operations 
specifications.
    Comments: Commenters generally opposed the language in proposed 
paragraph (b) because they felt it might restrict a repair station from 
performing work not directly related to aviation maintenance. In 
addition, an association stated that the proposed paragraph repeats the 
requirements in proposed Sec. 145.215, now Sec. 145.201. With regard to 
proposed paragraph (c), commenters generally supported not requiring 
display of a repair station certificate. However, some commenters 
suggested modifying the proposal by permitting only ``parties of 
interest'' or persons having a ``business need'' and the Administrator 
to inspect the certificate, rather than the ``public.'' One commenter 
who opposed the proposal asked why a certificate is issued if a repair 
station is not required to display it. That commenter also stated it 
would be more appropriate to require display of the operations 
specifications.
    FAA Response: This final rule contains paragraph (a) as proposed 
with a revision stating that a repair station also cannot operate 
without, or in violation of, its ratings. This revision is for clarity 
and does not place any additional burden on a repair station, because 
ratings are an integral part of a repair station's certificate. The FAA 
agrees that proposed paragraph (b) is similar to proposed 
Sec. 145.215(a)(1), now Sec. 145.201(a)(1) and, therefore, has not 
included proposed paragraph (b) in Sec. 145.5. However, the FAA notes 
that proposed Sec. 145.215(a)(1), now Sec. 145.201(a)(1), did not 
contain ``and within the limitations placed in its operations 
specifications,'' which was included in proposed Sec. 145.5(b). 
Therefore, that phrase has been added to Sec. 145.201(a)(1). With 
regard to proposed paragraph (c), the FAA disagrees that only ``parties 
of interest'' or persons with a ``business need'' should be allowed to 
inspect the certificate. The FAA finds that it is unlikely that a 
member of the general public will ask to inspect a repair station 
certificate unless

[[Page 41094]]

the person has, at least potentially, business with the repair station. 
In addition, determining who is a party of interest or whether a 
particular person has a business need would be subjective and difficult 
to enforce. Further, the FAA notes that the proposal relaxed the 
current requirement to always display the repair station certificate. 
Therefore, the FAA has adopted the proposal with the clarification that 
the certificate be available for inspection by the ``FAA,'' not the 
``Administrator,'' and that the repair station operations 
specifications also be made available. The FAA notes that operations 
specifications are an integral part of the repair station certificate. 
Finally, the FAA has deleted proposed paragraph (d), which would have 
set forth the contents of the operations specifications. The proposed 
paragraph was not regulatory in nature and only identified what the FAA 
may include in repair station operations specifications.

Subpart B--Certification

Section 145.51  Application for Certificate

    Summary of Proposal/Issue: The FAA based this proposed section on 
current Secs. 145.11, 145.13, and 145.71. The proposal would have 
revised the list of items an applicant is required to submit to the FAA 
with the application. In paragraph (a), the FAA proposed that an 
applicant submit (1) a copy of the repair station manual to the 
Administrator for approval; (2) 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; (3) a statement signed by the accountable manager that the 
procedures described in the repair station manual are in place and meet 
the requirements of the applicable regulations; (4) an organizational 
chart with names and titles of management and supervisory personnel; 
(5) a description of the applicant's facilities, including the physical 
address; and (6) a list of maintenance functions to be contracted out.
    Proposed paragraph (b) would have required that the equipment, 
personnel, technical data, and housing and facilities required for the 
certificate and rating be in place at the time of certification by the 
Administrator.
    In proposed Sec. 145.51(c), the FAA expanded 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. In addition, the proposal (1) 
required the applicant to demonstrate that required fees have been paid 
and (2) codified the FAA's existing practice of requiring that a repair 
station located outside the United States complete in English an 
application for a repair station certificate.
    Proposed Sec. 145.51(d) would have permitted 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.
    In proposed paragraph (e), the FAA addressed applications for 
additional ratings or renewal of repair station certificates.
    Comments: Many commenters questioned the reference in proposed 
paragraph (a)(1) to an approved rather than accepted repair station 
manual. Some of these commenters stated that use of the word 
``approved'' applies a more stringent standard to repair stations than 
to other certificate holders. With regard to proposed paragraph (a)(2), 
some commenters suggested requiring a listing by model series. Some 
commenters stated that a listing by parts is burdensome and would 
generate excessive paperwork and costs. One commenter recommended 
revising ``part'' to read ``part family.''
    Commenters generally opposed requiring the accountable manager to 
sign a statement that procedures are in place that meet the 
requirements of part 145. One commenter noted that the application 
process and subsequent FAA surveillance will ensure compliance with 
part 145.
    Commenters stated that the organizational chart should contain 
functional titles only. Those commenters opposed including names in the 
chart; some commenters stated that if names are included, the FAA must 
understand that those names would be current only at the time of 
application submission. Some commenters noted that current personnel 
assignments will be included in the required repair station roster. 
Another commenter recommended deleting this requirement because the 
information will be included in the repair station manual. One 
association stated that FAA approval of a repair station's 
organizational chart and personnel assignment is inappropriate.
    Some commenters suggested requiring only a general description of 
the applicant's housing and facilities under proposed paragraph (a)(5). 
An association contended that the proposed paragraph repeated the 
requirements in proposed Sec. 145.207(c), now Sec. 145.209(c). That 
association also opposed requiring an applicant's physical address in 
the application.
    With regard to proposed paragraph (a)(6), commenters stated that 
``maintenance functions'' is not adequately described; some commenters 
suggested using ``job function'' as set forth in appendix A. A few 
commenters indicated that only maintenance functions to be contracted 
to noncertificated persons should be listed in the application. Some 
commenters appear to have believed that the proposal would require FAA 
approval of vendors. One association stated that the required 
information will be provided on FAA Form 8130-3 and under 
Sec. 145.207(h), now Sec. 145.217(a), and, therefore, should be 
eliminated from the application.
    Commenters opposed the requirement in proposed paragraph (b) that 
equipment be in place at the time of certification and stated that is 
would be unnecessarily burdensome. Commenters suggested requiring only 
that the equipment be ``available.'' Commenters noted that some repair 
stations may lease equipment. Other commenters noted that it is only 
important that the equipment be in place when needed to perform the 
work.
    Commenters stated that proposed paragraph (c) should not be 
included in the final rule because the FAA has stated an intention to 
eliminate all distinctions between repair stations located inside the 
United States and those located outside the United States. Unions noted 
that the proposal does not require repair stations located outside the 
United States to comply with drug and alcohol testing programs 
applicable to repair stations located in the United States. Some unions 
and members of the U.S. Congress also urged reinstating the need-based 
requirement for repair stations located outside the United States. Some 
manufacturing associations opposed a need-based requirement and stated 
that market forces will determine if a repair station is ``necessary.''
    Commenters generally opposed proposed paragraph (d), which 
recognized consortiums that operate as a single organization. Some 
commenters felt that the proposal would provide an economic advantage 
to European repair stations. One association stated that the 
establishment of requirements for

[[Page 41095]]

satellite repair stations make this provision unnecessary.
    Comments varied with regard to proposed paragraph (e). Some 
commenters recommended alternative language, for example, referring to 
changes to ratings instead of additional ratings. Another commenter 
recommended deleting the paragraph and adding the requirements to 
proposed Sec. 145.57(b).
    FAA Response: In this final rule, paragraph (a)(1) references a 
repair station manual ``acceptable to the FAA.'' The FAA has not 
included the requirement for approval of the repair station manual in 
Sec. 145.207 of this final rule. In addition, the FAA has added a 
requirement in paragraph (a)(2) for submission of the applicant's 
quality control manual as required by Sec. 145.211(c). The requirement 
for a quality control manual is explained in the preamble discussion of 
Sec. 145.211. The FAA has revised paragraph (a)(3) (proposed paragraph 
(a)(2)) by using the term ``article'' rather than ``aircraft, airframe, 
aircraft engine, propeller, appliance, component or part thereof.'' 
Commenters interpreted proposed paragraph (a)(2) to require a listing 
by type, make, model, or ``part'' of the article for which the 
application is made. The final rule requires, as did the proposal, 
listing only the type, make, or model of the article for which 
application is made. The FAA notes that some repair stations work only 
on parts and therefore the type, make, or model for that part would be 
required.
    Based on commenter opposition, the FAA has eliminated the proposed 
requirement for the accountable manager to sign a statement that 
procedures are in place that meet the requirements of part 145.
    Paragraph (a)(4) is adopted as proposed. The FAA disagrees with 
commenters who suggest that only functional titles should be included 
on the organizational chart. The FAA finds that it is important to the 
certification process that a repair station demonstrate that qualified 
personnel are assigned to management and supervisory positions. The FAA 
notes that although personnel assignments may change after 
certification, current management and supervisory assignments must be 
maintained in the roster required by Sec. 145.161. In response to one 
commenter, the FAA notes that the organizational chart in the repair 
station manual does not require individual names.
    The FAA has adopted paragraph (a)(5) as proposed with minor 
editorial changes. Requiring only a general description of facilities 
would lead to subjective determinations of what kind of description is 
adequate. In addition, the FAA finds it is necessary to have a complete 
description, including the physical address of the repair station, for 
the certification process. The FAA recognizes that this information 
also will be included in the repair station manual. However, the FAA 
notes that the information in the manual must be kept current after the 
certification process; therefore, it performs an additional function.
    The FAA has adopted paragraph (a)(6) as proposed with minor 
editorial changes. The FAA notes that the application must include only 
the list of maintenance functions to be contracted out, not a list of 
vendors for approval. The FAA does not agree that this requirement 
should be restricted to maintenance functions contracted to 
noncertificated persons. The FAA finds that although this information 
must be made available to the FAA under Sec. 145.217(a), the 
information is important to the certification process and must be 
included in the application. The final rule explicitly provides that 
the list of maintenance functions to be contracted out is subject to 
the FAA's approval. The FAA notes that under the proposal, this 
information also was subject to FAA approval because it was included in 
the proposed repair station manual, which was an approved manual. In 
response to the comments regarding the meaning of ``maintenance 
functions,'' the FAA notes that maintenance functions include those 
individual tasks that comprise the maintenance, preventive maintenance, 
and alterations required to return an article to service.
    This final rule also includes paragraph (a)(7), which requires that 
an applicant for a repair station certificate submit a training program 
for approval in accordance with Sec. 145.163. Under the proposal, the 
training program would have been submitted as part of the repair 
station manual, which, as previously noted, was proposed to be an 
approved manual. The FAA notes that Sec. 145.163(a) contains a delayed 
compliance date; therefore, an applicant for a repair station 
certificate would not be required to submit a training program with its 
application until the date specified in Sec. 145.163(a).
    The FAA has revised paragraph (b) to permit a repair station to 
meet the equipment requirement by having a contract acceptable to the 
FAA that ensures the equipment will be available when the relevant work 
is performed. Such arrangements may include lease agreements and rental 
agreements. This will accommodate those repair stations that do not 
plan to purchase expensive equipment that may not be used regularly. 
The FAA will review the contract during the certification process, 
particularly with respect to the applicant's ability to obtain the 
equipment when the relevant work is performed. However, this provision 
does not relieve the applicant from having the equipment in place and 
available for inspection at the time of certification. The applicant 
need not physically retain the equipment after certification, but the 
FAA has determined that it is necessary that the applicant have the 
equipment in place during the certification process. The FAA will 
observe the placement of the equipment, whether the equipment works, 
and whether the applicant can use the equipment properly. The FAA notes 
that the repair station must have procedures in place for ensuring the 
equipment is calibrated properly, if applicable, at the time of use.
    With regard to proposed paragraph (c), the FAA has eliminated as 
many of the distinctions as possible between repair stations located 
inside the United States and those located outside the United States. 
However, the FAA has determined that the proposed application process 
distinctions are necessary. In response to commenters' concerns, the 
FAA notes that the proposed rule would require, exactly as does the 
current Sec. 145.71, that the certificate/rating applied for be 
necessary for maintaining or altering U.S.-registered aircraft and 
their parts, or foreign aircraft/parts operated under part 121 or part 
135.
    With regard to requiring personnel of repair stations located 
outside the United States to comply with U.S. drug and alcohol testing 
requirements, the FAA previously has found that there are significant 
practical and legal concerns precluding implementation of the anti-drug 
rule outside the United States. In adopting proposed paragraph (c), the 
FAA has used the word ``articles'' where appropriate. The FAA notes 
that proposed paragraph (c)(3), which explicitly provided that all 
documentation from a repair station located outside the United States 
had to be submitted in English, has not been included in this final 
rule. This paragraph was not necessary because paragraph (a) requires 
that all applications be in a format acceptable to the FAA, and the FAA 
has determined that only applications in English will be acceptable.
    Based on comments opposing the concept of consortiums, the FAA has 
removed from this final rule any provisions for consortiums. The FAA

[[Page 41096]]

notes that a rule for consortiums is unnecessary because only a limited 
number of exemptions have been issued to address this situation. The 
FAA finds that these limited requests would be better handled on a 
case-by-case basis under the part 11 exemption process.
    The FAA has adopted paragraph (e) as proposed with minor editorial 
changes. In addition, the paragraph also applies to applications for 
amended certificates. The FAA notes that this paragraph appears as 
paragraph (d) in this final rule.

Section 145.53  Issue of Certificate

    Summary of Proposal/Issue: The FAA based proposed Sec. 145.53 on 
current Secs. 145.11(b) and 145.71, which address the issuance of a 
repair station certificate. The FAA notes that in this final rule, 
Sec. 145.53 includes the requirements in proposed Sec. 145.2, which 
addressed repairs station certificates issued to persons located 
outside the United States, including persons in countries with which 
the United States has a bilateral aviation safety agreement (BASA). 
Comments on proposed Sec. 145.2 will be addressed below.
    Comments: Some commenters stated that the proposed language 
regarding issuance of certificates is ambiguous and unclear. One 
commenter recommended returning to the language in current 
Sec. 145.11(b). Commenters also recommended changing ``organization'' 
to ``person.''
    Commenters generally supported the language of proposed 
Sec. 145.2(a). However, one commenter noted that paragraph (a) does not 
include the limitations of proposed Sec. 145.53 and recommended adding 
the requirement to demonstrate that a repair station certificate is 
necessary in the interest of safety.
    Some commenters supported the language of proposed Sec. 145.2(b), 
now Sec. 145.53(b). However, a few commenters indicated that the 
language is redundant and unnecessary because the Administrator already 
is given this authority by law. One commenter agreed that the 
requirements for safe maintenance should not depend on the location of 
the repair station but is concerned that proposed Sec. 145.2(b) does 
not address repair stations located in countries for which BASAs with 
the United States do not exist.
    Many commenters are concerned with the FAA giving its oversight 
responsibility to foreign governments. In addition, some members of the 
U.S. Congress noted that it appears repair stations located outside the 
United States will be regulated less stringently than facilities based 
in the United States. They assert that the safety requirements imposed 
on repair stations located in the United States should be imposed on 
repair stations located outside the United States. The commenters added 
that the FAA has not made a case for allowing repair stations located 
outside the United States to obtain FAA approval for the sole purpose 
of siphoning business from domestic facilities.
    One foreign airline opposed proposed Sec. 145.2(b) because 
requiring repair stations located outside the United States to comply 
with all of part 145 is inconsistent with established BASAs.
    FAA Response: As previously noted, the FAA has moved the provisions 
in proposed Sec. 145.2 to Sec. 145.53 in this final rule because both 
sections deal with the issuance of repair station certificates. In 
addition, the word ``organization'' has been changed to ``person'' for 
consistency throughout the rule. The FAA notes that ``person'' is 
defined in part 1.
    In response to commenters' concerns about ambiguity in proposed 
Sec. 145.53(a), the FAA has reinstated the language found in current 
Sec. 145.11(b), with minor editorial changes. In this final rule, 
Sec. 145.53(a) applies to all repair stations, except those repair 
stations located in a country with which the United States has a BASA. 
Paragraph (a) provides that a person who meets the requirements of part 
145 is entitled to a repair station certificate and ratings, 
prescribing operations specifications and limitations necessary in the 
interest of safety.
    The FAA has included the text of proposed Sec. 145.2(b), which 
applies to repair stations located outside the United States in 
countries with which the United States has a BASA. In response to 
commenters' concerns regarding surveillance of these repair stations, 
the FAA notes that the local civil aviation authorities will handle 
certification tasks for those countries with which the United States 
has a signed BASA and associated maintenance implementation procedures 
(MIPs). Repair stations in these countries often must comply with 
additional requirements if those requirements are stated in the BASA 
and MIP. The FAA finds that where BASAs exist, repair stations undergo 
an equivalent level of oversight and inspection when compared to repair 
stations located in the United States. Not only does the FAA perform 
routine and, when necessary, extra surveillance when safety may be 
compromised, other JAA-member countries or national (civil) aviation 
authorities (NAAs) perform additional surveillance of these repair 
stations. Finally, the FAA notes that paragraph (b) is informational 
and clarifies how the BASA/MIP process works in relationship to the 
part 145 certification process. The provisions in proposed 
Sec. 145.2(b) are adopted as Sec. 145.53(b) with minor editorial 
changes.

Section 145.55  Duration and Renewal of Certificate

    Summary of Proposal/Issue: This proposed section was similar to 
current Secs. 145.15 and 145.17 but would have revised 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 proposal 
provided that the certificate or rating would expire after 24 months.
    Proposed paragraph (d) would have modified 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.
    Comments: Many commenters stated that proposed Sec. 145.55 
contradicts the FAA's intention of removing the regulatory distinctions 
between repair stations located inside the United States and those 
located outside the United States. One association stated that the FAA 
failed to present any justification for requiring repair stations 
located outside the United States to renew their certificates. That 
association believes that the burden of initial certification and 
continuous surveillance will be dictated under the BASAs and associated 
MIPs. Another commenter stated that requiring a repair station located 
outside the United States to renew its certificate every 24 months is 
incompatible with JAR 145. Some commenters stated that the proposal 
affects JAA-certificated repair stations located in the United States 
because there are no reciprocal terms for renewal and reevaluation. Two 
unions opposed expanding the certificate duration from 12 months to 24 
months, citing safety concerns and the quality of operations at repair 
stations located outside the United States.
    With regard to proposed paragraph (d)(1), a commenter noted that 
the requirement to apply for a renewal of a certificate 90 days before 
its expiration would be impractical if the 12-month certificate 
duration is retained in the final rule.
    FAA Response: Where appropriate, the FAA has eliminated the 
regulatory distinctions between repair stations

[[Page 41097]]

located inside the United States and those located outside the United 
States. However, to ensure an appropriate level of oversight, the FAA 
has determined that it is necessary to retain the expiration and 
renewal requirements for repair stations located outside the United 
States. Despite attempts to harmonize with JAA requirements, the FAA 
notes that the FAA never considered that certificate duration would be 
identical for repair stations located inside the United States and 
outside the United States.
    The FAA has retained in this final rule the 12-month certificate 
duration period found in current Sec. 145.17(b). However, this final 
rule also allows the FAA to renew the certificate for 24 months as 
currently permitted. The 12-month certificate duration period provides 
the FAA more oversight opportunity, especially when reviewing a renewal 
request for a newly certificated repair station located outside the 
United States. In light of the return to the 12-month certificate 
duration, the FAA has retained the current provision requiring repair 
stations to apply for renewal within 30 days of certificate expiration 
rather than the 90 days proposed. However, the FAA notes that if the 
repair station does not apply before that 30-day period, it must follow 
the application procedures in Sec. 145.51.
    The proposal is adopted with the changes discussed above and some 
minor editorial changes, including reordering of the paragraphs.

Section 145.57  Amendment to or Transfer of Certificate

    Summary of Proposal/Issue: The proposal was based on current 
Sec. 145.15 and delineated the circumstances under which a repair 
station had to apply for a change to its certificate. Proposed 
Sec. 145.57(b) stated that the privileges of the certificate could not 
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 repair station assets would have had to apply 
for a new certificate under the provision of proposed Sec. 145.51.
    Comments: With regard to paragraph (a), some commenters recommended 
eliminating the requirement that the application be on a ``form.'' 
Commenters generally felt that the prohibition against transfer of 
repair station certificate privileges in proposed paragraph (b) was 
overly broad. Commenters noted the changes in the aviation maintenance 
industry, specifically the increasing number of repair stations owned 
by publicly held corporations. Commenters stated that the proposal 
would decrease the value of the repair station certificate and that 
there are no similar requirements for air carriers. Commenters stated 
that a change in ownership does not necessarily result in a material 
change in the operations of the repair station. Commenters complained 
about the recertification costs if the proposal is adopted.
    FAA Response: The FAA has revised paragraph (a) to clarify that a 
change to a certificate is necessary only if the certificate holder 
changes its location or requests to add or amend a rating. Therefore, 
changes to housing and facilities will not require a change to the 
repair station certificate. However, the FAA notes that Sec. 145.105 
provides that a repair station may not make any changes to its housing 
or facilities that could have a significant effect on its ability to 
perform the maintenance, preventive maintenance, or alterations under 
its certificate and operations specifications without written approval 
from the FAA. Paragraph (a) also has been revised to permit 
applications for changes in a format acceptable to the FAA rather than 
on a form as specified in the proposal.
    In response to commenters' concerns regarding the transfer of 
certificates, the FAA has retained the language in current 
Sec. 145.15(b) with minor editorial changes.

Section 145.59  Ratings

    Summary of Proposal/Issue: The proposed section would have 
completely revised the current system of ratings and classes specified 
in current Secs. 145.31 and 145.33.
    Comments: The comments to the proposal were previously addressed.
    FAA Response: As previously noted, the proposed rating system has 
been withdrawn and will be addressed in a subsequent rulemaking. The 
final rule retains the rating system found in current Sec. 145.31.

Section 145.61  Limited Ratings

    Summary of Proposal/Issue: Proposed Sec. 145.61 contained the 
transition period for the new ratings system.
    Comments: The comments on the transition period are not longer 
relevant to this rulemaking but will be considered in the subsequent 
rulemaking.
    FAA Response: In this final rule, Sec. 145.61 retains the 
provisions for limited ratings found in current Sec. 145.33 with minor 
editorial changes. The FAA notes that current Sec. 145.33(b)(13) is not 
included in this final rule. That paragraph provided for the issuance 
of a limited rating for any other purpose determined by the 
Administrator. The FAA does not issue any ``other'' limited ratings, 
except as specifically delineated in Sec. 145.33(b)(1) through (b)(12), 
and the provision in paragraph (b)(13) led repair stations to apply for 
``other'' limited ratings. Not including it in this final rule will 
eliminate any confusion caused by the provision.

Subpart C--Housing, Facilities, Equipment, Materials, and Data

    Summary of Proposal/Issue: The proposed title for subpart C was 
``Facilities, Equipment, Materials, and Housing.''
    Comments: One association suggested revising the title of the 
subpart to more closely parallel the order of subjects in the subpart.
    FAA Response: The FAA agrees and the title of subpart C is revised 
to read ``Housing, Facilities, Equipment, Materials, and Data.''

Section 145.101  General

    Summary of Proposal/Issue: This section is based on current 
Sec. 145.55 with no substantive changes.
    Comments: Two associations questioned the use of the words 
``quantity'' and ``quality'' because the words are too subjective. 
Commenters also opposed the use of the word ``standard'' because it is 
ambiguous and because subpart C does not contain measurable standards 
for repair station certification; several of these commenters suggested 
replacing the word ``standards'' with ``applicable requirements.'' 
Another association commented that the proposed section does not refer 
to ``housing'' and requested that the section be revised to include all 
items necessary for a repair station to be in compliance with the 
regulations.
    FAA Response: In this final rule, the FAA has not included the 
words ``quantity'' and ``quality'' and has replaced the word 
``standards'' in the proposal with ``applicable regulations.'' The FAA 
agrees that the words ``quantity'' and ``quality'' do not provide 
objective regulatory criteria. In this final rule, a certificated 
repair station will have to meet the applicable requirements for 
issuance of the certificate and ratings it holds. This section also has 
been revised to reference housing and data requirements because both 
subjects are addressed in this subpart. The reference to personnel 
requirements has been removed from this section because personnel are 
addressed under subpart D.

[[Page 41098]]

Section 145.103  Housing and Facilities Requirements

    Summary of Proposal/Issue: The FAA based proposed Sec. 145.103(a) 
on current Sec. 145.35.
    Proposed Sec. 145.103(b) described the facility and housing 
requirements currently found in Sec. 145.37. Specifically, proposed 
Sec. 145.103(b)(1) would have required suitable permanent housing for 
the largest type and model of aircraft on which a repair station 
performs maintenance, preventive maintenance, or alteration. Proposed 
paragraph (b)(2) would have provided for the use of permanent work 
docks and the performance of work outside, where permitted by climatic 
conditions. Proposed paragraph (b)(3) would have established new 
provisions to require a repair station that performs maintenance, 
preventive maintenance, or alterations on any article of composite 
construction to meet acceptable process requirements.
    Proposed Sec. 145.103(b)(4) through (b)(7) would have revised 
current requirements to apply to the proposed system of ratings.
    Proposed Sec. 145.103(b)(8) would have specifically established 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 an alteration is performed.
    In Sec. 145.103(c), the FAA proposed to permit a repair station 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.
    Comments: With regard to proposed Sec. 145.103(a), commenters 
expressed concern about the subjective nature of the word ``suitable'' 
as used to describe required housing and facilities. Commenters also 
opposed proposed paragraph (a)(5)(v), which would have permitted the 
Administrator to determine additional circumstances under which 
machines and equipment should be segregated. These commenters stated 
that the proposal would allow for subjective opinions from individual 
inspectors. Some commenters asserted that if proposed paragraph 
(a)(5)(v) is adopted, the FAA should establish a mediation process or 
objective criteria on which inspectors could base their decisions.
    Various commenters objected to proposed paragraph (a)(6), which 
would have required a repair station to have assembly space in an 
enclosed structure where the largest amount of assembly work is done, 
on the grounds that repair stations may need to perform work outside. 
One commenter stated that instead of eliminating work outdoors, the FAA 
should require adequate protection from the environment. However, one 
union supported the elimination of outdoor work. The union asserted 
that environmental factors can have an adverse effect on working 
conditions. Opposition also was expressed to the requirement in 
proposed paragraph (a)(7) for a repair station to have storage 
facilities used exclusively to store and protect parts. Commenters 
argued that the provision would require repair stations to build 
additional facilities and that exclusive use of a storage facility is 
not necessary to ensure an article is airworthy.
    Some commenters opposed proposed paragraphs (a)(8) through (a)(10) 
because the requirements relate to environmental codes, and FAA 
inspectors are not trained to conduct Occupational Safety and Health 
Administration (OSHA) audits. In addition, some commenters complained 
that those paragraphs lack objective standards and, therefore, would be 
subject to the interpretation of individual FAA inspectors.
    Some commenters opposed the use of the word ``suitable'' in 
proposed paragraph (b)(1) on the basis that it could lead to subjective 
interpretations. Some commenters suggested that the requirement for 
enclosed permanent housing be based on the capability list rather than 
the repair station rating. Other commenters cited the expense 
associated with requiring such housing.
    One commenter stated that the use of permanent work docks in 
proposed paragraph (b)(2) should not be based on climatic conditions. 
Another commenter stated that the proposal implies that permanent work 
docks are required to work outside. That commenter contended that work 
docks are not always necessary. One commenter interpreted the proposal 
as prohibiting work docks as allowed under the current rules. Another 
commenter opposed requiring FAA acceptance of the work docks on the 
basis that FAA inspectors are not able to determine which work docks 
are acceptable.
    Commenters who opposed proposed paragraph (b)(3) stated that all 
maintenance, preventive maintenance, or alterations require meeting 
acceptable process requirements, not just work performed on composites. 
Other commenters recommended deleting this provision because it does 
not relate to housing and facilities requirements.
    One association stated that proposed paragraphs (b)(4) through 
(b)(7) are redundant to the requirements of proposed paragraph (a), 
which permits the Administrator to base the housing and facilities 
requirements on the rating held and the work to be performed.
    Commenters suggested possible alternative language for proposed 
paragraph (b)(8) to permit facilities equivalent to those recommended 
by the manufacturer.
    Comments on proposed paragraph (c) will be addressed in the 
discussion of Sec. 145.203, which includes the proposed requirements in 
this final rule.
    FAA Response: The FAA has revised Sec. 145.103 in response to 
issues raised by the commenters. The FAA agrees that the housing and 
facilities requirements should be based on a repair station's ratings 
and the work performed. This final rule does not contain many of the 
specific requirements opposed by the commenters. This final rule 
provides regulatory flexibility and accommodates changing technologies 
while helping to ensure only airworthy articles are returned to 
service.
    For example, this rule requires that a repair station have 
facilities that provide for the proper segregation and protection of 
articles, and segregated work areas enabling environmentally hazardous 
or sensitive operations to be performed without affecting other work.
    The FAA notes that commenters who contend that the FAA should not 
issue regulations that address ventilation, lighting, and control of 
temperature and humidity appear to believe that this area should be 
regulated only by OSHA. The FAA notes that the regulations addressing 
these issues are intended to ensure the quality of maintenance 
performed. If articles and workers performing maintenance functions on 
these articles are not protected from these elements, the work may not 
be performed properly. Therefore, the issue is one of the quality of 
the work performed, which is clearly within the scope of the FAA's 
authority.
    This final rule includes a requirement that a repair station with 
an airframe rating must provide suitable permanent housing to enclose 
the largest type and model aircraft listed on its operations 
specifications. Unlike the current requirement, this final rule does 
not require a repair station to provide housing for at least one of the 
heaviest aircraft within the weight class of the rating it seeks. In 
response to comments opposing the use of the word ``suitable,'' the FAA 
finds that because the operations conducted by repair stations vary, 
the agency cannot dictate one type of permanent housing suitable for 
each repair station. Therefore, the word ``suitable'' is retained in 
this final rule.

[[Page 41099]]

    This final rule also provides that a repair station may perform 
maintenance functions outside of its housing if the repair station 
provides facilities that are acceptable to the FAA and meet the 
requirements of Sec. 145.103(a) to ensure the work can be performed in 
accordance with the requirements of this part and part 43.
    The FAA notes that proposed paragraph (c), which is included in 
Sec. 145.203 of this final rule, will be discussed later.

Section 145.105  Change of Location, Housing, or Facilities

    Summary of Proposal/Issue: The proposal specified the types of 
changes that would require the Administrator's approval. The proposal 
would have required that any change to the location or facilities of a 
repair station, including substantial rearrangement of space within its 
present location, be approved in advance. The proposal also stated that 
a repair station may not operate at a new location until approved by 
the Administrator.
    Comments: Commenters generally opposed the proposal. They stated 
that the proposal would lead to subjective and inconsistent 
interpretations by inspectors. Commenters stated that the rule should 
not address ``any'' change, and only changes that adversely affect the 
airworthiness of articles should require FAA approval. Some commenters 
asserted that only reductions in space should require approval. Other 
commenters opposed any regulation of changes to housing and facilities. 
One association opposed the proposal because there is no safety 
justification for requiring approval to rearrange equipment.
    FAA Response: In response to commenters' concerns, the FAA has 
retained the requirements in current Sec. 145.21 with some changes. 
Specifically, in this final rule, Sec. 145.105(a) requires approval 
only of changes to the location of the repair station's housing. 
Paragraph (b) requires FAA approval of changes to housing or facilities 
required by Sec. 145.103 only if the change would have a significant 
effect on the repair station's ability to perform maintenance, 
preventive maintenance, or alterations under its certificate and 
operations specifications. Therefore, not all changes to housing or 
facilities will require approval. The FAA notes that the rule does not 
require FAA approval for equipment changes under this section. 
Paragraph (c) retains with minor editorial changes the provision that 
the FAA may prescribe conditions and limitations under which the repair 
station must operate during a change to its location, housing, or 
facilities.

Section 145.107  Satellite Repair Stations (Proposed Secs. 145.107 and 
145.109)

    Summary of Proposal/Issue: In these sections, the FAA proposed to 
permit a repair station to establish a satellite repair station to 
perform work at a place other than the repair station's primary 
facility. Proposed Sec. 145.107(a) described a satellite repair station 
and specified the requirements for the certification of these 
facilities. In paragraph (b), the FAA proposed to permit the parent and 
satellite repair station to use each other's personnel and equipment.
    Additionally, in paragraphs (c) and (d) the FAA proposed to 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. Likewise, a repair station located 
outside the United States would not be permitted to have a satellite 
repair station located within the United States.
    Because proposed Sec. 145.109 addressed satellite repair station 
operations, it has been combined with Sec. 145.107 in this final rule. 
Proposed Sec. 145.109 required that a chief inspector or an assistant 
chief inspector be designated for a satellite repair station. The 
proposal also required that the inspector be available at the satellite 
repair station or, if away from the premises, by telephone, radio, or 
other electronic means.
    Comments: Commenters generally supported the concept of satellite 
repair stations. However, the majority of commenters requested that the 
CHDO for the repair station with managerial control also have 
responsibility for the satellite repair station. Commenters also 
indicated that a single point of contact with the FAA is important.
    With regard to satellite repair station manuals, commenters 
requested that a satellite repair station be able to combine its manual 
with the manual of the managing repair station. Some commenters 
suggested that the satellite repair station's procedures could be in an 
appendix to the managing repair station's manual. A few commenters 
stated that one manual would permit one quality control system for the 
managing and satellite repair stations, which would promote safety. 
Commenters also stated that the manual should be accepted rather than 
approved as provided for in the proposal.
    Commenters stated that the word ``independent'' should be removed 
from proposed paragraph (b) because it has not been defined and appears 
to create another category of satellite repair stations.
    Commenters generally opposed proposed paragraphs (c) and (d) 
because the restrictions from having satellite repair stations in 
countries other than the country of the managing repair station hinder 
the expansion of the aviation industry across international borders. 
Commenters stated that a single quality control system offers the 
potential for a satellite repair station to be located ``globally.'' 
Commenters asked whether a repair station located outside the United 
States may have a satellite repair station located outside the United 
States and, if so, whether the satellite repair station must be in the 
same country as the managing repair station.
    With regard to proposed Sec. 145.109, commenters opposed the use of 
the terms ``chief'' inspector and ``assistant chief'' inspector. Some 
commenters stated that part 145 does not require those specific 
positions. The JAA recommended amending the proposal to require that 
the inspector be present when there is a need to inspect or return to 
service an article. The JAA noted that it is important to prevent 
telephone-based judgments made on the basis of another person's 
observations when an aircraft has been involved in an incident.
    FAA Response: The FAA has revised this section in the final rule to 
clarify the requirements for satellite repair stations. In addition, 
the final rule does not use the term ``parent'' to describe the 
managing repair station but rather refers to it as the ``repair station 
with managerial control'' over the satellite repair station.
    The FAA intends that the CHDO for the repair station with 
managerial control also hold the satellite's repair station 
certificate. Surveillance will be conducted by the geographic flight 
standards district office (FSDO) at the request of the CHDO. Although a 
satellite repair station will have its own certificate, it may not hold 
a rating not held by the repair station with managerial control. The 
satellite need not hold all the ratings held by the managing repair 
station. This requirement is in paragraph (a)(1).
    With regard to the satellite's repair station manual, the satellite 
may use the managing repair station's manual if it is applicable to the 
satellite's operations. The two manuals may not be identical because 
the operations of the managing and satellite repair stations may not be 
identical. It is likely that the satellite repair station will use 
portions of the managing repair station's manual. The

[[Page 41100]]

FAA notes that the manuals could be combined with specific procedures 
set apart for the satellite repair station. When applying for its 
certificate, the satellite repair station must submit whatever manual 
it will use. The FAA notes that the manual must be acceptable to the 
FAA rather than approved by the Administrator, as proposed.
    This final rule also requires that the applicant for a satellite 
repair station certificate submit a quality control manual acceptable 
to the FAA. Like the repair station manual, the quality control manual 
may be identical to the managing repair station's quality control 
manual, if appropriate. The requirement for a quality control manual 
will be discussed in the analysis of Sec. 145.211.
    Paragraph (b) of this final rule contains the requirements of 
proposed paragraph (b) and proposed Sec. 145.109. References to 
``chief'' inspector and ``assistant chief'' inspector have been 
deleted. The FAA also included language to clarify that inspection 
personnel designated for a satellite repair station must be available 
at the satellite repair station any time a determination of 
airworthiness or return to service is made. In other circumstances, 
inspection personnel may be away from the premises but must be 
available by telephone, radio, or other electronic means.
    This final rule combines proposed paragraphs (c) and (d) and 
provides that a satellite repair station may not be located in a 
country other than the domicile country of the certificated repair 
station with managerial control. This prohibition is necessary because 
of certification and surveillance issues. For example, if the repair 
station with managerial control is located in a country with whom the 
United States has a BASA and MIP, certification is accomplished under 
the BASA and MIP and surveillance is performed by the CAA of the 
foreign country. If the satellite repair station is located in another 
country with whom the United States does not have a BASA and MIP, 
certification of the satellite repair station could not be accomplished 
in a manner consistent with that of the repair station with managerial 
control. In addition, the entity providing surveillance of the repair 
station with managerial control would not provide surveillance of the 
satellite repair station.

Section 145.109 (Proposed Sec. 145.111) Equipment, Materials, and Data 
Requirements

    Summary of Proposal/Issue: The proposed requirements were based on 
current Secs. 145.47 and 145.49. The proposal would have retained the 
requirements similar to those of current Secs. 145.47(a) and (b), and 
145.49(a); however, the proposal would have required that tools used to 
accomplish work must be those recommended by the manufacturer or 
equivalent to the manufacturer's recommendation, and acceptable to the 
Administrator. The proposal also would have required that tools used 
for product acceptance and/or for making a finding of airworthiness be 
tested at regular intervals to ensure correct calibration to a standard 
acceptable to the Administrator.
    Comments: Commenters opposed proposed paragraph (a) on the basis 
that it precludes repair stations from renting or leasing equipment. 
The commenters stated that this option is particularly important for 
expensive, rarely used tools.
    Commenters stated that proposed paragraph (b) is vague. Some 
commenters requested that the FAA define a ``standard acceptable to the 
Administrator.'' Other commenters stated that the regulation should 
state that the standards be derived from National Institute of 
Standards and Technology (NIST) standards or ``accepted or approved by 
a national government standards agency.''
    Commenters who opposed proposed paragraph (c) stated that the tools 
and equipment should be required to be in place only when the work is 
being performed. In addition, some commenters stated that the proposal 
limits the repair station's ability to develop alternative tooling that 
performs the intended function and would be acceptable to the 
Administrator. A few commenters recommended eliminating this paragraph 
because equipment and tooling already are addressed in Sec. 43.13(a).
    Because the FAA has moved the requirements for a repair station to 
keep current certain documents from proposed Sec. 145.201(b) and (c) to 
Sec. 145.109 in this final rule, comments on maintaining current 
documents and possessing manufacturers' maintenance manual requirements 
in proposed Sec. 145.201(b) and (c) will be discussed here. Commenters 
encouraged the FAA to revise the rule to permit the use of electronic 
databases. Some commenters stated that the rule language should 
reference part 43. Commenters also opposed the requirement to always 
have all the documents and data listed in this section. They contended 
that the information is necessary only when the work is being 
performed. Specifically, commenters stated that there is no need for a 
repair station to have all service bulletins applicable to a part 
unless work required by the particular service bulletin is being 
performed. Other commenters complained that to require a repair station 
to maintain all current manufacturers' maintenance manuals relating to 
an article when maintenance is performed is unnecessarily costly. Some 
commenters requested that ``approved technical data'' be added to the 
list of required data.
    FAA Response: The FAA has substantially revised the proposed 
requirements based on the comments. The language adopted in this final 
rule is based in part on language provided by commenters.
    In this final rule, paragraph (a) requires a repair station to have 
the equipment, materials, and tools necessary to perform the work under 
its repair station certificate and operations specifications in 
accordance with part 43. Although proposed paragraph (a) did not 
preclude repair stations from renting or leasing equipment, the FAA has 
revised that paragraph to clarify that the equipment must be located on 
the repair station's premises and under its control when the work is 
being done.
    The FAA has revised paragraph (b) as proposed to require that a 
repair station ensure that all test and inspection equipment and tools 
used to make airworthiness determinations are calibrated to a standard 
acceptable to the FAA. The FAA will issue guidance regarding what 
standards will be acceptable to the FAA. The FAA has issued numerous 
exemptions from the current requirement that calibration be to a 
standard derived from the NIST when the alternative standard has been 
accepted by the NIST as adequate. The intent of this provision is to 
provide more regulatory flexibility. The FAA notes that this paragraph 
no longer requires that the equipment be calibrated at ``regular'' 
intervals. The interval at which measuring and test equipment is 
calibrated depends on the type and use of the equipment; therefore, the 
word ``regular'' does not adequately describe when the equipment should 
be calibrated. The FAA notes that Sec. 145.211(c)(1)(viii) requires 
that a repair station's quality control manual contain a description of 
the systems and procedures for calibrating measuring and test equipment 
used in maintaining articles, including the intervals at which the 
equipment will be calibrated.
    Paragraph (c) has been simplified and the references to appendix A 
to part 145 have been eliminated. This final rule provides that 
equipment, materials, and tools must be those recommended by

[[Page 41101]]

the manufacturer of the article, or at least an equivalent, and 
acceptable to the FAA. In response to the comment, the FAA notes that 
the rule permits a repair station to develop its own tooling provided 
it is at least equivalent to that recommended by the manufacturer and 
acceptable to the FAA.
    The FAA has replaced proposed paragraph (d) with requirements 
similar to those in proposed Sec. 145.201(b) and (c). The FAA has 
determined that requirements for maintaining documents and data are 
more appropriately located in Sec. 145.109. This final rule requires 
each repair station to maintain, in a format acceptable to the FAA, the 
documents and data necessary to perform work under its repair station 
certificate and operations specifications in accordance with part 43. 
The documents and data must be current and accessible when the relevant 
work is being done. As suggested by one commenter, the FAA has added a 
reference to other applicable data acceptable to or approved by the 
FAA.
    In addition, the final rule permits the required documents and data 
to be maintained in a format acceptable to the FAA. As previously 
noted, this language will permit the information to be stored 
electronically and give the FAA the discretion to permit the storage of 
information through other media, if appropriate.
    Regarding the document and data requirements, the FAA notes that 
Sec. 43.13 already requires that work be performed in accordance with 
the methods, techniques, and practices prescribed in the current 
manufacturer's maintenance manual or Instructions for Continued 
Airworthiness or other methods, techniques, and practices acceptable to 
the Administrator.

Subpart D--Personnel

Section 145.151  Personnel Requirements

    Summary of Proposal/Issue: In Sec. 145.151 the FAA proposed to 
establish the same general personnel requirements for repair stations 
located inside the United States as those located outside the United 
States. The FAA also proposed to require each certificated repair 
station to designate an individual as the accountable manager.
    Comments: For reasons previously discussed, commenters opposed 
requiring a repair station to designate an accountable manager as 
proposed in paragraph (a)(1). Commenters opposed the requirement in 
proposed paragraph (a)(2) for a ``sufficient'' number of personnel on 
the basis that it is vague. Some commenters stated that the level of 
staffing is a business decision. An association stated that this 
language may prohibit smaller facilities from meeting the requirements 
of the paragraph because the workload of a small repair station can 
fluctuate dramatically during a given time period.
    One commenter asked whether ``maintenance operations'' as used in 
proposed paragraph (a)(3) include alterations. A few commenters 
recommended removing the word ``noncertificated'' from that paragraph. 
Other commenters stated the proposal could require all noncertificated 
employees, such as building maintenance personnel, to be tested. Some 
commenters stated that requiring practical tests of noncertificated 
employees would be impractical because the repair station would have to 
develop and administer tests for every conceivable job function.
    With regard to proposed paragraph (c), commenters again criticized 
the use of the word ``sufficient.'' Commenters also criticized the use 
of the word ``technique'' because it is unrelated to a standard.
    FAA Response: The FAA has made editorial changes, removed redundant 
requirements, and reorganized this section for clarity. The language 
adopted in the final rule is based, in part, on language proposed by 
commenters.
    As discussed in the analysis of Sec. 145.3, the FAA has retained 
the position of accountable manager. The FAA notes that a repair 
station is not required to hire an individual to fill this position but 
may designate a current employee as the accountable manager. In 
addition, a satellite repair station need not designate an accountable 
manager; the accountable manager for the repair station with managerial 
control over the satellite repair station may serve in this position.
    The FAA has retained the requirement for a ``sufficient'' number of 
employees in paragraph (c). Because repair stations vary in size, the 
FAA cannot require a specific number of employees, and the language 
accommodates this situation. The FAA notes that the rule does not 
require a repair station to always maintain a certain staffing level 
but rather requires it have a sufficient number of employees for the 
work being performed.
    In response to one commenter's concern, paragraph (d) in the final 
rule applies only to employees who perform maintenance functions under 
part 145. The FAA disagrees with the commenters who suggested removing 
the word ``noncertificated.'' The final rule requirement that a repair 
station determine the abilities of its employees based on training, 
knowledge, experience, or practical tests applies only to 
noncertificated employees who perform maintenance functions. The FAA 
notes that a determination based on these criteria is not required for 
part 65 certificated employees.
    In response to the commenter who asked whether maintenance 
operations include alterations, the FAA previously noted that 
maintenance functions (proposed as maintenance operations) include all 
the tasks required to perform maintenance, preventive maintenance, and 
alterations.

Section 145.153  Supervisory Personnel Requirements

    Summary of Proposal/Issue: In this section, the FAA proposed 
minimum practical experience and training requirements for supervisory 
personnel. The proposal also would have expanded the Administrator's 
ability to determine the competence of all supervisory personnel. In 
addition, this proposed section would have required minimum experience 
and training requirements for inspection personnel employed at repair 
stations.
    Comments: Commenters generally opposed this proposed section. 
Commenters questioned why the proposal requires part 65 certification 
of supervisors. Some of these commenters questioned why a certificated 
supervisor also must have 18 months of experience. One association 
asked what constitutes 18 months of experience: for example, performing 
the maintenance function once a month or once in 18 months. Commenters 
opposed the proposed requirement for a ``sufficient'' number of trained 
personnel to supervise the maintenance performed and suggested 
replacing the term ``trained personnel'' with ``qualified personnel.'' 
Commenters asked for clarification of the difference between a 
``supervisor'' and a ``person directly in charge.'' In addition, 
commenters opposed the FAA determining the appropriate ratio between 
supervisors and apprentices or students. Commenters also opposed the 
proposal to permit the FAA to evaluate supervisory personnel, 
particularly based on testing. Commenters felt this provision is 
overreaching and may allow abuse and personal bias.
    Commenters stated the proposal does not eliminate the distinctions 
between repair stations located inside the United States and those 
located outside the United States. Unions opposed exempting foreign 
repair station personnel from part 65 certification requirements.

[[Page 41102]]

    FAA Response: The FAA has revised this section to clarify its 
requirements and remove redundant provisions. In addition, this section 
no longer addresses inspection personnel requirements. For clarity, the 
FAA determined that it would be better to address inspection personnel 
requirements in a separate section.
    The final rule retains the requirement for a ``sufficient'' number 
of personnel to perform supervisory duties. As previously noted, 
because repair stations vary in size, the FAA cannot require a specific 
number of supervisors. The final rule also requires that supervisors 
hold part 65 certification if employed by a repair station located 
inside the United States. However, the rule does not require 
supervisors employed by a repair station located inside the United 
States to have either 18 months of experience or be trained or 
thoroughly familiar with the means used to accomplish the maintenance 
work being supervised, as proposed. The FAA notes it is not necessary 
to set forth such experience requirements in this rule because the 
proposed experience requirements are similar to the 18-month practical 
experience requirement in Sec. 65.77 for mechanics and Sec. 65.101 for 
repairmen. However, supervisors at repair stations located outside the 
United States are required under the final rule to meet the proposed 
experience requirements because they are not required to have part 65 
certification. During the certification process of a repair station 
that is located outside of the United States, the FAA assesses the 
foreign country's licensing procedures to determine if they meet 
minimum safety standards that are acceptable to the FAA. Also, under 
BASAs with other countries, the FAA can assesses the adequacy of 
licensing procedures either separately or as one of the elements of the 
MIP.
    If the FAA determines that a country's licensing procedures are not 
acceptable, the FAA has the discretion to require that the personnel 
performing covered maintenance functions in those repair stations be 
certificated under part 65 before the station will be issued a part 145 
certificate. In the case of a BASA where the Civil Aviation Authority 
(CAA) does meet all of the FAA licensing standards, the Administrator 
would require the CAA to add additional requirements. In addition, part 
145 sets forth minimum experience and knowledge requirements for 
foreign maintenance personnel. Adequate controls are in place that 
allow the Administrator to exercise discretion in the interest of 
safety and to ensure that only qualified maintenance personnel perform 
work in repair stations located outside the United States. The FAA 
finds that requiring all foreign maintenance personnel to meet the part 
65 certification requirements would not serve any safety purpose, and 
it would place an unnecessary burden on both the FAA and the foreign 
maintenance personnel. Imposing such requirements would impair the 
exercise of discretion, and thus not be appropriate.
    Finally, this final rule includes the requirement that supervisors 
understand, read, and write English. The FAA notes that the proposal 
contained such a requirement for supervisors at repair stations located 
outside the United States. Supervisors at repair stations located 
inside the United States are required to be certificated under part 65; 
that part requires those individuals to read, write, speak, and 
understand English.
    The final rule does not dictate the ratio of supervisors to 
individuals being supervised but leaves this decision to the repair 
station. With regard to the difference between a ``supervisor'' and a 
``person directly in charge,'' the definition of ``directly in charge'' 
provides that the person need not physically observe and direct each 
worker constantly but must be available for consultation on matters 
requiring instruction or decision from higher authority. A supervisor 
would physically observe and direct a worker when needed.
    The FAA has not included proposed paragraph (g) in the final rule. 
This paragraph provided for FAA evaluation of supervisory personnel 
based on employment records, tests, or any other methods. The FAA has 
determined that such a provision is not necessary because this section 
already requires supervisory personnel to meet certain qualifications.

Section 145.155 (Proposed Sec. 145.153) Inspection Personnel 
Requirements

    Summary of proposal/issue: Proposed Sec. 145.153 would have 
addressed inspection personnel requirements.
    Comments: Commenters opposed the proposal to permit the FAA to 
evaluate inspection personnel, particularly based on testing. 
Commenters felt this provision is overreaching and may allow abuse and 
personal bias.
    FAA Response: For clarity, the FAA has addressed inspection 
personnel requirements in this separate section. The FAA notes that 
minimum qualification requirements, currently found in Sec. 145.45, 
were inadvertently omitted from the proposal. The final rule contains 
qualification requirements similar to those found in the current rule. 
The final rule does not require that inspection personnel hold part 65 
certification. However, the inspectors must be thoroughly familiar with 
applicable regulations and inspection methods, techniques, practices, 
aids, equipment, and tools used to determine the airworthiness of an 
article. In addition, they must be proficient in using various types of 
inspection equipment and visual inspection aides appropriate for the 
article being inspected. Finally, the final rule includes the 
requirement that inspectors understand, read, and write English.
    The FAA notes that this section does not include the proposed 
provision that would permit the FAA to evaluate inspection personnel 
based on employment records, tests, or any other methods. As noted in 
the discussion of Sec. 145.153, inspection personnel are already 
required to meet certain qualifications.

Section 145.157 (Proposed Sec. 145.211(c)) Personnel Authorized To 
Approve an Article for Return to Service

    Summary of Proposal/Issue: Proposed Sec. 145.211(c) would have set 
forth the qualifications for inspectors authorized to perform 
inspections under that section.
    Comments: No comments were received on this proposal.
    FAA Response: The FAA has determined that the requirements for 
personnel authorized to return an article to service are more 
appropriately included in subpart D, which contains all other personnel 
requirements, rather than subpart E, which addresses operating rules. 
The final rule requires that personnel authorized to return an article 
to service be part 65 certificated unless employed by a repair station 
located outside the United States. The final rule requires personnel 
employed by a repair station outside the United States to have 18 
months of practical experience and be thoroughly familiar with the 
applicable regulations and proficient in the use of the various 
inspection methods, techniques, practices, aids, equipment, and tools 
appropriate for the work performed and approved for return to service. 
Such experience requirements are not necessary for personnel authorized 
to approve an article for return to service who are employed by a 
repair station located in the United States, because those personnel 
hold part 65 certification. Finally, the final rule also includes the 
requirement that personnel authorized to approve an article for return 
to service must understand, read, and write English.

[[Page 41103]]

Section 145.159 (Proposed Sec. 145.155) Recommendation of a Person for 
Certification as a Repairman

    Summary of Proposal/Issue: The proposal would have required 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 FAA also proposed 
to delete provisions of current Sec. 145.41(b), which required 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. Section 145.41(b) also permitted a repair 
station to recommend any employee who meets the requirements of current 
Sec. 65.101 for certification as a repairman.
    Consistent with proposed Sec. 145.153(g), proposed Sec. 145.155(b) 
also would have permitted the Administrator to evaluate any repairman's 
ability by inspecting employment and experience records and/or by 
administering an oral or practical test.
    Comments: Comments on the proposed language varied. One association 
contended that the requirements under Sec. 65.101 are explicit enough 
that proposed Sec. 145.155(a)(3) and (b)(1) through (b)(3) is not 
necessary. That association stated that the proposed language is 
confusing because it could be interpreted as imposing requirements in 
addition to those found in Sec. 65.101. Commenters recommended 
eliminating proposed paragraph (b), which permitted subsequent FAA 
evaluation of a repairman based on employment, tests, or any other 
methods.
    FAA Response: The FAA has substantially revised the proposal to 
address commenters' concerns. This final rule simply requires a repair 
station who chooses to use repairmen to meet the applicable personnel 
requirements of this part to certify that each person recommended is 
employed by the repair station and meets the eligibility requirements 
of Sec. 65.101. The rule no longer requires a repair station to certify 
that the person has the necessary training and practical experience to 
perform the work functions for which certification is required. It was 
not the FAA's intent to impose training or experience requirements 
beyond those imposed in Sec. 65.101.
    Current Sec. 145.41 requires that a certificated repair station 
recommend at least one person for certification as a repairman. Under 
this final rule, a repair station is not required to recommend any 
specific number of repairmen. However, the FAA notes that a repair 
station must have an appropriate number of repairmen for the work to be 
performed under its certificate and ratings. In addition, this final 
rule does not contain the proposal regarding subsequent evaluation of a 
repairman.

Section 145.161 (Proposed Sec. 145.157) Records of Management, 
Supervisory, and Inspection Personnel

    Summary of Proposal/Issue: The FAA based this proposed section on 
current Sec. 145.43. The FAA proposal continued to require a repair 
station to retain a roster of supervisory (including management) 
personnel and inspection personnel. In paragraph (a)(3) the FAA 
proposed to 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.
    The proposal included current requirements relating to the 
retention of information indicating compliance with experience 
requirements. The FAA proposed to modify the current rule by requiring 
that these rosters be kept current.
    Comments: Commenters suggested revisions to the proposed language, 
including elimination of the term ``chief inspector.'' A few commenters 
requested that the FAA define the term ``technical supervisors'' as 
used in paragraph (a)(1). Some commenters opposed the requirement that 
repair stations must prepare a summary of past employment history and 
total years of experience for individuals listed on the rosters. 
Commenters stated that the only appropriate information to include in 
the summary is the individual's title, scope of present assignment, and 
FAA certificate number. Commenters also stated that the rule should 
accommodate temporary assignments without requiring updated rosters.
    FAA Response: In response to a request to define ``technical 
supervisors'' as used in proposed paragraph (a)(1), the FAA has revised 
that paragraph to state ``supervisors who oversee maintenance 
functions.'' In addition, the FAA has deleted the term ``chief 
inspector'' from paragraph (a)(2). The FAA has determined that the 
summary required in paragraph (a)(4) is necessary to assist the agency 
in determining that an individual is qualified for the position held at 
the repair station. In addition, the FAA notes that the summary is a 
current requirement under Sec. 145.43. The FAA has revised proposed 
paragraph (a)(4)(iii), which would have required that the summary 
include all past employment records with the names of employers and 
periods of employment by month and year. The final rule requires only 
past relevant employment with the names of employers and period of 
employment.
    The FAA has added language in paragraph (b) to provide repair 
stations with 5 business days for updating rosters. This revision 
should preclude the necessity for daily revisions of rosters.

Section 145.163 (Proposed Sec. 145.159) Training Requirements

    Summary of Proposal/Issue: The FAA proposed to require 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 functions. The FAA proposed to require that records of 
accomplished 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.
    Comments: Commenters voiced various criticisms about the proposed 
training requirements. Many commenters complained that the proposal 
does not contain specific requirements and stated that the FAA should 
issue advisory material for comment before publication of the final 
rule. Commenters wanted to know the type of training required, the 
frequency of training, and what is required to quantify and qualify on-
the-job training. Some commenters stated that a ``one size fits all'' 
rule will not work for small repair stations. One association stated 
that the hiring practices of small repair stations or the performance 
of limited and specifically defined, repetitive work does not require 
continuous training and retraining. Many commenters stated that the 
training program should be acceptable to the Administrator rather than 
approved by the Administrator. The NTSB noted that the minimum 
standards for the recurrent training of pilots, flight attendants, and 
ground personnel involved in deicing and currency of job-specific 
skills is no less important for mechanics. The NTSB stated that the 
final rule should specify a reasonable quantity of recurrent training. 
An association representing European air carriers stated that the FAA 
should not require training programs for foreign repair stations that 
are significantly different than those used by the JAA. Unions and an

[[Page 41104]]

association expressed support for a training requirement for repair 
stations.
    With regard to the recordkeeping requirement, commenters stated 
that the FAA should specify which items to include in the records 
rather than state that the records should be in a format acceptable to 
the Administrator. Commenters also recommended that training records be 
maintained for 2 years only.
    FAA Response: The FAA has determined that adoption of a training 
program for repair station employees who perform maintenance, 
preventive maintenance, or alterations would enhance aviation safety by 
helping to ensure that those employees are fully capable of performing 
the work. It also would promote a level of safety equivalent to that of 
maintenance performed under parts 121 or part 135.
    The FAA disagrees with commenters who contend that training 
programs should be accepted rather than approved. To ensure that the 
right type of program and amount of training is tailored to each 
individual repair station, the FAA has elected to approve training 
programs rather than accept them. The FAA recognizes that the training 
programs may vary depending on the size of the repair station and the 
nature of the work performed. Therefore, the FAA is not prescribing 
specific training requirements but will approve individual training 
programs submitted by repair stations. Before the effective date of the 
final rule, the FAA will issue advisory material regarding the required 
training program. The FAA does not anticipate that the training program 
requirement will be burdensome; many repair stations already provide 
employee training. In addition, the FAA anticipates that training 
requirements may be met by attending trade or technical society 
seminars and through on-the-job training. The FAA notes that repair 
station personnel performing maintenance for certificate holders 
conducting operations under part 121 or part 135 already must undergo 
training.
    In adopting this rule, the FAA revised the proposal to require 
repair stations to retain employee training records for a minimum of 2 
years. With regard to commenters' concerns regarding the content of the 
training records, the FAA notes that the language ``in a format 
acceptable to the FAA'' refers to the media by which the records will 
be submitted, for example electronically. When submitting its training 
program for approval, a repair station should delineate the items it 
intends to include in the records.
    The FAA also disagrees that repair stations located outside the 
United States that operate differently from JAA-approved repair 
stations be exempt from the training program requirement. The final 
rule requires each repair station to implement a training program that 
is tailored to their individual operation. This may require that JAA 
training be included in the training programs for repair stations that 
are JAA-approved. This is not limited to only those repair stations 
located outside the United States. Likewise, repair stations located 
outside the United States that are not JAA-approved won't be required 
to include JAA training if this training does not reflect their 
operations. The FAA has taken great effort to standardize requirements 
for all repair stations regardless of their location to ensure only the 
best trained and qualified workforce performs maintenance on U.S.-
registered articles.
    To provide time for repair stations to develop their training 
programs, this final rule provides that beginning 2 years after the 
effective date of the rule, each applicant for a repair station 
certificate must submit a training program for approval by the FAA. A 
repair station certificated before that date must submit its training 
program for approval on the last day of the month in which its 
certificate was issued. Therefore, if a repair station was issued a 
certificate in May 1995, that repair station must submit its training 
program to the FAA by May 31, 2 years after the effective date of the 
final rule. This compliance schedule allows each certificated repair 
station at least 2 years to develop its program. The FAA adopted this 
staggered compliance schedule for certificated repair stations to 
ensure that all training programs are not submitted to the agency at 
one time. A repair station may submit its training program before the 
deadline if it chooses to do so.

Subpart E--Operating Rules

Section 145.201 (Proposed Sec. 145.215) Privileges and Limitations of 
Certificate

    Summary of Proposal/Issue: The proposal would have modified current 
Sec. 145.51 to include references to preventive maintenance and to 
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 FAA proposed 
to delete the current references to the performance of 100-hour, 
annual, or progressive inspections.
    In addition, the FAA proposed in paragraph (b)(3) that a repair 
station could not approve for return to service any experimental 
aircraft after a major repair or major alteration unless the work was 
performed in accordance with methods and technical data acceptable to 
the Administrator.
    Comments: Commenters stated that a repair station should have to 
survey a contractor only if it is not certificated; those commenters 
noted that contractors that are certificated repair stations will have 
a quality control system. Commenters also noted that the proposal 
permitted a repair station to perform work on experimental aircraft, 
but the FAA has not established what methods and technical data would 
be considered acceptable to the Administrator. One commenter questioned 
how the FAA would administer this proposal for the various purposes for 
which an experimental certificate is issued. Commenters recommended 
using the word ``article'' in the final rule where appropriate. One 
commenter noted that the proposal did not include the provision in 
current Sec. 145.51 that permitted a repair station to perform 
maintenance at a place other than the repair station. Another commenter 
stated that proposed paragraphs (b)(2) and (b)(3) are redundant and 
should be removed from the final rule.
    FAA Response: The FAA has incorporated the word ``article,'' as 
appropriate, in this section of the final rule. The FAA has adopted 
paragraph (a)(1) as proposed with minor editorial changes and the 
addition of the phrase ``within the limitations in its operations 
specifications.'' As previously noted, this phrase was included in 
proposed Sec. 145.5(b). That proposed paragraph was not included in the 
final rule because proposed Sec. 145.5(b) was similar to proposed 
Sec. 145.215(a)(1), now Sec. 145.201(a)(1), in the final rule. However, 
because the above-cited phrase was not included in Sec. 145.215(a)(1), 
it has been included in Sec. 145.201(a)(1) in the final rule.
    With regard to paragraph (a)(2), the FAA agrees that a contractor 
that is certificated under part 145 will have its own quality control 
system and does not need to be surveyed by the contracting part 145 
certificated repair station. Therefore, the final rule provides that a 
contracting certificated repair station must provide in its contract 
that a noncertificated person performing a maintenance function must 
follow a quality control system equivalent to the certificated repair 
station's system. The FAA notes that it is not enough for the 
contracting repair station to give its

[[Page 41105]]

quality control manual to the noncertificated contractor and assume the 
proper procedures will be followed. The certificated repair station 
must provide adequate surveillance to ensure its quality control 
procedures are followed.
    The FAA notes that paragraph (b) is included in the final rule to 
provide that a certificated repair station may not maintain or alter 
any article for which it is not rated and may not maintain or alter any 
article for which it is rated if it requires special technical data, 
equipment, or facilities that are not available to it. This provision 
is a current requirement under Sec. 145.53 and was inadvertently 
omitted from the proposal.
    The FAA has adopted paragraph (c) as proposed with minor revisions. 
In addition to re-designating the paragraph to reflect the addition of 
paragraph (b) as noted above, the word ``applicable'' was included 
before ``approved technical data'' to clarify that the data must apply 
to the work performed. Paragraph (c)(3), which addresses major repairs 
and major alterations of experimental aircraft, includes a reference to 
Sec. 43.1(b). Section 43.1(b) provides that part 43 applies to 
experimental aircraft that were previously issued a different kind of 
airworthiness certificate. The reference to Sec. 43.1(b) in 
Sec. 145.201(c)(3) clarifies that the paragraph applies to work 
performed by a repair station on these experimental aircraft as covered 
by part 43. The FAA agrees with the commenters who expressed concern 
over the appropriateness of including a provision in part 145 for major 
repairs or major alterations of all experimental aircraft.
    Finally, the FAA notes that work performed away from a repair 
station is addressed in Sec. 145.203.

Section 145.203 (Proposed Sec. 145.103(c)) Work Performed at Another 
Location

    Summary of Proposal/Issue: The proposal would have addressed work 
performed at another location in Sec. 145.103(c). The FAA proposed to 
permit a repair station to perform certain job functions on aircraft at 
a place other than its fixed location due to special circumstances as 
determined by the Administrator. The FAA proposed to require that the 
repair station manual include procedures for the performance of this 
work.
    Comments: Commenters stated that the proposal is too restrictive 
and current Sec. 145.51(d) should be retained. A commenter recommended 
permitting the work to be performed on ``articles'' rather than just 
``aircraft.'' A manufacturer stated that the proposal lacks guidance on 
how type certificate holders can perform maintenance at locations other 
than the manufacturer's location. The commenter stated that provisions 
are needed to define the role of service technicians and engineers who 
work for type certificate holders and are trained to perform 
maintenance in the field according to FAA-approved instructions once 
the limited rating for manufacturers is eliminated. An aircraft 
manufacturer noted that its customers often request that scheduled 
inspections be performed at their location. Another commenter stated 
that the rule should allow scheduled maintenance away from the repair 
station's location. Commenters stated that work away from the repair 
station's fixed location should be permitted ``as applicable'' rather 
than ``as approved by the Administrator.''
    FAA Response: Because this provision applies to repair station 
operations, the FAA determined that it should be included in subpart E 
of part 145. The FAA has revised the final rule to permit work on an 
``article'' rather than an ``aircraft.''
    In response to comments, the FAA has revised this section. This 
final rule permits a repair station to perform work away from the 
repair station's location when the work is necessary due to a one-time 
special circumstance, for example, an aircraft on the ground or in 
preparation for a ferry flight, as determined by the FAA. The rule also 
permits work away from a repair station's fixed location when it is 
necessary to perform such work on a recurring basis, if the repair 
station's manual includes procedures for accomplishing maintenance, 
preventive maintenance, alterations, or specialized services at a place 
other than the repair station's fixed location. This later provision 
will allow work away from a repair station's fixed location as part of 
everyday business practices rather than under special circumstances 
only, as proposed. In response to the manufacturer's concerns, the FAA 
notes that a manufacturer will need to obtain a part 145 certificate 
and perform maintenance under this section in accordance with part 43 
just as other certificated repair stations are required to do.

Section 145.205 (Proposed Sec. 145.7) Maintenance, Preventive 
Maintenance, and Alterations Performed 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

    Summary of Proposal/Issue: The FAA proposed to 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 comply with the provisions of 
those parts pertaining to such a program. The proposal would have 
specifically listed those sections for which compliance is required. 
The FAA also proposed to 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.
    The proposal also would have addressed work performed for 
certificate holders operating aircraft under part 125 and for persons 
operating aircraft under part 129.
    Finally, the FAA proposed to establish 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.
    Comments: One association supported the concept contained in this 
section but recommended the title be revised to delete the reference to 
required inspections. Some commenters recommended that the FAA revise 
parts 121 and 135 to require operators to provide maintenance manuals 
or other reference manuals to the repair station performing the 
maintenance.
    Many commenters opposed the language in proposed Sec. 145.7(a). 
Several indicated that the proposed language implies that a repair 
station would have to completely adopt an air carrier's total 
requirements rather than following only the air carrier's requirements 
applicable to the work performed. A commenter noted that although a 
repair station is required to comply with an air carrier's continuous 
airworthiness maintenance program, it does not necessarily use the same 
methods or processes. Some commenters were concerned about the

[[Page 41106]]

reference to Sec. 121.375, Maintenance and preventive maintenance 
training programs, and the potential for complications to enforcement 
actions and individual FAA inspector interpretations.
    One commenter stated that the term ``manual'' in Sec. 145.7(b) 
should be replaced with ``maintenance program.'' Regarding 
Sec. 145.7(d), a few commenters recommended changing the language ``a 
program approved by the Administrator'' to ``the operator's program 
approved by the Administrator,'' because the proposed language implies 
that a program must be approved for the repair station by the 
Administrator.
    Some commenters supported the proposed line maintenance provisions 
in Sec. 145.7(e). Several commenters opposed the proposal because it 
would permit a repair station to do line maintenance without meeting 
all part 145 requirements. One commenter stated that the FAA must adopt 
a separate performance requirement for line maintenance and clearly 
delineate the function from the air carrier requirements. Another 
commenter recommended defining line maintenance for aircraft other than 
large transport category aircraft and including the line maintenance of 
part 91 aircraft located within the same geographic region of the 
controlling FSDO.
    FAA Response: The FAA moved proposed Sec. 145.7 to subpart E 
because it is an operating rule. The FAA has deleted the reference to 
required inspections from the section title. The FAA agrees that these 
inspections are part of ``maintenance'' as defined in Sec. 1.1; 
therefore, the reference is not necessary.
    In response to commenters, the FAA has revised the proposal. 
References to the various sections in parts 121 and 135 appeared to 
confuse commenters; the FAA did not intend to impose additional 
requirements by including those references. With regard to commenters' 
requests to require air carriers to provide repair stations with copies 
of their manuals, such revisions were not proposed and, therefore, are 
outside the scope of this rulemaking. In addition, the FAA notes that 
parts 121 and 135 require that maintenance under a continuous 
airworthiness maintenance program be performed in accordance with the 
operator's manual, and it is the operator's responsibility to ensure 
the work performed on its behalf is done so in accordance with its 
approved programs.
    The FAA has revised the requirements in proposed Sec. 145.7(d), now 
Sec. 145.205(c), to require compliance with the part 129 operators' 
FAA-approved maintenance program in response to commenters' concerns 
that the repair station had to obtain approval from the FAA.
    The final rule includes the provision for line maintenance as 
proposed except for the requirement that the repair station be located 
at the line station. The FAA disagrees with commenters who expressed 
concern that repair stations performing line maintenance will not be 
required to comply with part 145 and, therefore, the work will not be 
appropriately performed. The only requirement that repair stations need 
not comply with when performing line maintenance is Sec. 145.103(b). 
The repair stations must otherwise comply with part 145 and meet the 
additional requirements in Sec. 145.205(d). As previously discussed, 
Sec. 145.3 defines line maintenance. Finally, the FAA notes that the 
proposal did not address line maintenance performed for part 91 
operators and therefore that issue is outside the scope of this 
rulemaking.

Section 145.207 (Proposed Sec. 145.205) Repair Station Manual

    Summary of Proposal/Issue: The FAA proposed to established 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 have set 
forth requirements specifying the availability of the repair station 
manual to repair station personnel. The FAA proposed that a repair 
station provide its CHDO with a current copy of the manual. If the 
CHDO's copy was an electronic version, it would have to be accompanied 
by a means to access the manual at the CHDO.
    Comments: Commenters opposed requiring approval of a repair station 
manual and requested that the FAA revise the rule to require the manual 
be acceptable to the Administrator. Commenters noted that an approval 
process may hamper their ability to be flexible in meeting customer 
needs. Commenters questioned whether the FAA has the resources for the 
approval process. Some commenters asked how often manual revisions must 
be submitted to the CHDO. Other commenters recommended revising the 
requirement that the manual be submitted in paper or electronic format; 
some of those commenters suggested using language to allow submission 
in any media. Two unions stated that the FAA should require that the 
manual be translated for use in foreign countries so all mechanics and 
employees can read and understand the manual. One of the unions stated 
that the translation should be approved by the FAA. One commenter asked 
whether having the manual available for personnel in electronic format 
meets the ``readily available'' requirement.
    FAA Response: The FAA has included in this final rule the 
requirement that a repair station manual must be acceptable to the FAA. 
Unlike the approval process, the FAA will not issue any formal approval 
of the manual or revisions to the manual. However, if the FAA 
determines that the manual itself or revisions of the manual are not 
acceptable, the FAA will notify the repair station and the repair 
station must make appropriate changes to the manual. The FAA notes that 
the frequency with which a repair station must submit its manual 
revisions to the FAA is set forth in the procedures required by 
Sec. 145.209(j).
    This final rule requires that a repair station manual be accessible 
for use by repair station personnel rather than ``readily available.'' 
The FAA notes that the manual must be accessible to personnel when the 
work is being performed; therefore, a manual in a supervisor's office 
to which repair station personnel do not have access while work is 
being performed would not comply with this final rule. The manual may 
be in any format acceptable to the FAA, including but not limited to 
paper or electronic format.
    With regard to the comment concerning translation of the repair 
station manual, the FAA notes that such a requirement was not proposed 
and therefore is outside the scope of this rulemaking.

Section 145.209 (Proposed Sec. 145.207) Repair Station Manual Contents

    Summary of Proposal/Issue: In the proposal, the FAA outlined the 
minimum requirements for a repair station manual. As proposed, the 
manual would have included 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, 
a list of the maintenance functions contracted to an outside 
certificated facility or noncertificated person, procedures for 
conducting work under proposed 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, and

[[Page 41107]]

procedures for changes in location and facilities of the repair 
station.
    Comments: Commenters generally opposed including names of 
individuals in the organizational chart or the roster of authorized 
inspection personnel. Commenters stated that a management or inspection 
personnel change would require a manual revision. Commenters also 
stated that the organizational chart should contain only functional 
titles. Commenters suggested that the roster should be maintained 
separate from the manual.
    Some commenters stated that one manual should not include all the 
proposed items; for example, the quality control procedures could be in 
a separate manual. A few commenters stated that the term ``system'' in 
``quality control system'' is too broad and subject to interpretation; 
one of those commenters noted that the FAA failed to supply examples of 
a required quality control system.
    Commenters also opposed requiring a list of facilities to which the 
certificated repair station contracts out maintenance functions. 
Similarly, commenters opposed including the capability list in the 
manual. Commenters contended that it is not necessary to include a 
general description of the repair station's operations, including 
housing, facilities, and equipment, because this information already is 
provided to the FAA through certification requirements. Commenters also 
opposed including the training program in the manual. Commenters 
suggested including only a general description of the program.
    Commenters opposed including the procedures for self-evaluation for 
adding items to a capability list. One commenter stated that there is 
no precedent for FAA approval of an internal audit program.
    Three commenters opposed the requirement to describe the 
recordkeeping system, because part 43 already defines these 
requirements. Many commenters opposed the proposed requirement of 
including procedures for changes to a repair station location or 
facilities. Commenters stated that procedures for changing location or 
facilities is already addressed in the regulations and is unrelated to 
aviation safety.
    FAA Response: The FAA has revised the proposal by deleting 
requirements for the names of specific personnel in the organizational 
chart; only functional titles will be required. In addition, throughout 
this section, the FAA has eliminated, where appropriate, requirements 
to maintain the actual items, such as rosters, capability lists, and 
names of outside contractors, and instead requires that procedures for 
revising this information be set forth in the manual. As with personnel 
names, much of this information is subject to change and if included in 
the manual would require frequent manual revisions.
    As previously noted, the FAA has removed the quality assurance 
requirements from the rule; therefore, any references to it have been 
removed from the manual requirements. The FAA also has removed the 
quality control system requirements from the manual and has addressed 
them separately in Sec. 145.211. Requirements relating to the 
procedures for surveying noncertificated contractors also have been 
moved to Sec. 145.211(c)(vi) and are discussed later. The FAA has 
retained the requirement to include procedures for the self-evaluation 
required to add an article to a repair station's capability list. The 
FAA has determined that it is important to ensure that an article is 
added to the list only when the article is within the scope of the 
ratings and classes of the repair station certificate. The repair 
station also must have all of the facilities, equipment, materials, 
technical data, processes, housing, and personnel to perform the work; 
adequate self-evaluation procedures are a means to achieve this. 
However, the FAA notes that Sec. 145.215 now makes the use of a 
capability list optional for repair stations with limited ratings 
rather than mandatory for all repair stations. Moreover, the FAA notes 
that the manual, and hence the procedures for self-evaluations, will 
not require FAA approval but only FAA acceptance.
    The FAA disagrees with commenters who opposed including in the 
manual a general description of repair station operations and its 
recordkeeping requirements. The FAA has determined that it is important 
for the repair station to set forth how it operates. In addition, any 
changes to these operations will be reflected in the most current 
revision of the manual.
    The FAA notes that procedures for revising the training program 
required by Sec. 145.163 must be included in the manual. However, 
because the FAA is delaying implementation of the training program, 
these procedures need not be included in the manual until the repair 
station is required to have a training program.
    The FAA has not included in the final rule the proposed requirement 
that the manual have procedures for changing the repair station's 
location and facilities. Section 145.105 adequately addresses this 
issue.
    Unlike the proposal, the final rule does not require that a repair 
station manual include a table of contents, list of effective pages, or 
list of revisions with the date of each revision. To accommodate the 
technological changes that permit repair stations to maintain and 
revise their manuals in different formats and manners, the final rule 
provides that the manual must include a description of the system used 
to identify and control sections of the repair station manual.

Section 145.211 (Parts of Proposed Secs. 145.201, 145.207, and 145.209) 
Quality Control System

    Summary of Proposal/Issue: Proposed Sec. 145.201 would have 
required a repair station to establish a quality assurance system. The 
FAA also proposed to continue to require a repair station to have a 
quality control and inspection system but expanded the scope of the 
system to include the quality control of any work performed by a 
contractor. The proposal also would have required these systems to be 
described in the repair station manual. Proposed Sec. 145.209 would 
have modified current provisions related to the use of inspection 
devices and the conduct of inspection procedures. The FAA also proposed 
to 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 were performed.
    Comments: Commenters generally opposed requiring repair stations to 
implement a quality assurance system. Even commenters who supported the 
concept of quality assurance stated that the FAA should issue 
appropriate guidance material on the subject and permit public comment 
before adopting a final rule. Some commenters cited the cost of 
external audits; others questioned the impact such a system would have 
on safety. One association noted that neither air carriers nor 
production approval holders are required to have quality assurance 
programs, even though they may be authorized to perform maintenance. 
Another association stated that part 145 is a quality assurance system, 
and the FAA has not identified how it has failed. Unions generally 
supported requiring quality assurance systems. However, even some 
unions stated that the FAA should define specific and objective 
standards for quality assurance systems.
    With regard to quality control systems, commenters stated that a 
repair station should not be required to survey certificated 
contractors or ensure they follow quality control procedures. Many

[[Page 41108]]

of those commenters argued that if the contractor is certificated, it 
will have a quality control system, and it is the FAA's responsibility 
to survey these repair stations.
    Commenters opposed the proposed requirements that repair stations 
have an incoming inspection of raw materials and articles to ensure 
conformity with type design data. Those commenters also opposed an 
inspection of articles on which contract maintenance has been performed 
to ensure conformity with type design data and that the article is in 
condition for safe operation. Some commenters noted that a repair 
station inspection can ensure only that the article is in an airworthy 
condition and that the work was performed in a manner as prescribed in 
part 43.
    With regard to hidden damage, some commenters stated that an 
inspector cannot disassemble every part or component to search for such 
damage. Commenters stated that the rule should require owners/operators 
to notify the repair station that an article may have been involved in 
an accident. Another commenter stated that limiting inspections for 
hidden damage to accident-related parts is inadequate for ensuring 
safety.
    Commenters recommended that inspection personnel requirements be 
moved to proposed Sec. 145.153. In addition, some commenters stated 
that inspection personnel should be required to be familiar with only 
``applicable'' methods, techniques, and equipment rather than ``all'' 
of those items.
    FAA Response: As previously noted, the FAA has not included the 
proposed requirement for establishing a quality assurance system. The 
FAA intends to issue a subsequent rulemaking that will address this 
issue. Comments on Notice No. 99-09 will be considered during that 
rulemaking process.
    The FAA has retained the quality control system requirements and 
combined the applicable provisions of proposed Secs. 145.201, 145.207, 
and 145.209 in Sec. 145.211 of this final rule.
    Section 145.211 requires a repair station to maintain a quality 
control system acceptable to the FAA that ensures the airworthiness of 
articles on which the repair station or any of its contractors perform 
maintenance. This final rule requires the repair station to keep a 
quality control manual and delineates the items that must be included 
in that manual. The required items were set forth in various sections 
of the proposal but primarily in the proposed repair station manual 
requirements; some of the items also are required to be maintained in 
the repair station inspection procedures manual under current 
Sec. 145.45(f). The FAA determined that it was more appropriate to 
consolidate all of the provisions relating to quality control into one 
section. The FAA notes that the quality control manual may be separate 
from the repair station manual or included with that manual as a 
separate section or volume.
    In this final rule, repair stations that contract maintenance 
functions to other certificated repair stations will not be required to 
survey those contractors. The rule requires a certificated repair 
station to qualify and survey only noncertificated persons who perform 
maintenance functions for the repair station.
    The final rule also requires a repair station to inspect incoming 
raw materials to ensure acceptable quality and to perform a preliminary 
inspection of articles that are maintained. The final rule contains the 
requirement that a repair station have procedures for inspecting for 
hidden damage to articles involved in accidents.
    The FAA agrees that the inspection personnel requirements of the 
proposal should be moved to subpart D, which addresses personnel 
requirements. As previously noted, Sec. 145.155 requires that 
inspectors be familiar with the applicable regulations and the 
inspection methods, techniques, practices, aids, equipment, and tools 
used to determine the airworthiness of the article on which the 
maintenance, preventive maintenance, or alterations are performed. 
Inspectors also must be proficient in using the various types of 
inspection equipment and visual inspection aids appropriate for the 
article being inspected.

Section 145.213 (Proposed Sec. 145.211) Inspection of Maintenance, 
Preventive Maintenance, or Alterations

    Summary of Proposal/Issue: The FAA based this proposed section on 
the requirements regarding inspection of maintenance, preventive 
maintenance, or alteration in current Sec. 145.59 and expanded it to 
address repair stations located outside the United States. The FAA 
proposed to include current restrictions placed on repair stations 
located outside the United States and on the supervisory and inspection 
personnel employed by these repair stations.
    Comments: Commenters generally supported the language in proposed 
Sec. 145.211(a) but indicated that the phrase ``aircraft, airframe, 
aircraft engine, propeller, appliance, and component, or part thereof'' 
should be replaced with the word ``article.'' In addition, many 
commenters indicated that the inspector is responsible for determining 
the airworthiness only of the article on which work was performed 
rather than the entire aircraft and suggested adding the phrase ``with 
respect to the work performed'' to paragraph (b)(2). Other commenters 
suggested replacing the word ``work'' in paragraphs (b)(1) and (b)(2) 
with the phrase ``maintenance, preventive maintenance, and 
alteration.'' Many commenters indicated the language of proposed 
Sec. 145.211(c) should be removed because it repeats proposed 
Sec. 145.153 and is in conflict with the FAA's intention of removing 
the distinction between domestic repair stations and foreign repair 
stations. Commenters also indicated that proposed Sec. 145.211(d) 
should be rewritten to specify that only persons designated by a repair 
station may sign off on final inspections and maintenance releases for 
the repair station because designated persons currently sign final 
inspections and maintenance releases under the repair station's 
certificate, not their personal certificates.
    FAA Response: Except as discussed below, the rule is adopted as 
proposed. As suggested by a commenter, the FAA has revised the rule to 
use the word ``article'' when appropriate. In response to commenters'' 
concerns, the FAA has included language in paragraph (b)(2) to clarify 
that an inspector must inspect the article on which the repair station 
has performed work to determine the article to be airworthy ``with 
respect to the work performed.'' In addition, the FAA has moved the 
inspection personnel requirements to Sec. 145.155. The FAA agrees that 
all personnel requirements should be located in subpart D.

Section 145.215 (Proposed Sec. 145.203) Capability List

    Summary of Proposal/Issue: The proposal would have required each 
repair station to prepare and retain a current capability list that 
contains a list of the articles on which it performs maintenance, 
preventive maintenance, or alterations. The proposal would have 
required that these articles be identified by make and model, part 
number, or other nomenclature designated by the article's manufacturer. 
The FAA proposed to require that before revising its capability list, a 
repair station must complete a self-evaluation to ensure it meets all 
of the requirements for the proposed operations.
    Comments: Many commenters opposed the concept of a capability list. 
The commenters generally stated that creating and maintaining a 
capability

[[Page 41109]]

list would create a significant administrative burden and increase 
operating costs without enhancing safety. Commenters noted that the 
capability list is redundant in light of the other requirements in part 
145. Some commenters noted that a capability list has merit, but stated 
that listing each article by make, model, and part number is excessive. 
Some of those commenters added that the part number should be the basic 
part number and not include ``dash numbers.'' Some commenters noted 
that the self-evaluation system is not defined. The commenters 
indicated that proposed Sec. 145.203(d) should be revised to permit the 
use of a designee when the accountable manager is unavailable. Some 
commenters believed paragraph (d) places an unacceptable level of 
personal liability on the accountable manager and should be deleted. 
One association stated that a repair station should have to submit only 
changes to its capability list, not the entire list, and changes should 
be allowed to be submitted electronically to the FAA.
    FAA Response: The FAA has revised the proposed requirements to 
provide repair stations with only limited ratings the option of using a 
capability list. If the repair station chooses not to use a capability 
list, it must perform maintenance, preventive maintenance, or 
alterations of articles only as listed in its operations 
specifications. The FAA determined that it would be burdensome for all 
repair stations to maintain a capability list as proposed. In addition, 
the FAA finds that repair stations with limited ratings would be more 
likely to exercise this option. Based on the comments, the FAA 
recognizes that the use of a capability list is not appropriate for 
every repair station. The FAA also notes that it never intended to 
require, for example, repair stations that perform C and D checks on 
many different airplanes to compile a capability list with every part 
of every airplane it works on.
    For repair stations with limited ratings, the use of a capability 
list will be less onerous than frequently requesting revisions to their 
operations specifications and provide regulatory flexibility. The FAA 
has not included in the final rule the requirement to identify each 
article by part number. The final rule requires identification by make 
and model or other nomenclature designated by the article's 
manufacturer. If a repair station with a limited rating chooses to use 
a capability list, its operations specifications will not need to be 
revised each time a new article is added to the list. However, the 
final rule retains the requirement that a repair station perform a 
self-evaluation before adding an article to its capability list. The 
FAA has determined that such an evaluation is necessary to ensure the 
repair station has the facilities, equipment, materials, technical 
data, processes, housing, and trained personnel in place to perform 
work on that article. The FAA notes that Sec. 145.209 requires a repair 
station to include in its repair station manual procedures for 
performing this self-evaluation and reporting the results to the 
appropriate manager for review and action. The FAA has removed the 
requirement that the accountable manager must sign the evaluation. 
However, documentation of the evaluation must be retained on file by 
the repair station. If the repair station chooses to use a capability 
list, its manual also must include procedures for revising the 
capability list and reporting the revisions to the CHDO, including the 
frequency with which its revisions will be reported. Finally, the FAA 
notes that the capability list must be maintained in a format 
acceptable to the FAA; as previously discussed, the use of this 
language will permit repair stations to maintain the list 
electronically.

Section 145.217 (Proposed Sec. 145.213) Contract Maintenance

    Summary of Proposal/Issue: The FAA proposed to address requirements 
for repair stations that contract out maintenance functions. The FAA 
proposed that a repair station could not contract a job function to 
another certificated repair station or a noncertificated person unless 
the contracting repair station met the quality control system 
requirements proposed in Secs. 145.201(a)(2) and 145.209(c)(2). The 
contracting repair station manual must also contain the procedures 
specified in proposed Sec. 145.207(h), including procedures for 
surveying that certificated repair station or noncertificated entity. 
The proposal also would have provided that a certificated repair 
station may not contract the maintenance, preventive maintenance, or 
alteration of a complete type-certificated product, and it may not 
provide only approval for return to service of any article following 
contract maintenance.
    Comments: Many commenters opposed the requirement that a 
certificated repair station must audit another certificated repair 
station that performs contract work. Commenters asserted that the FAA 
already has made a determination that a certificated repair station's 
quality control and inspection system is adequate when the repair 
station is issued a repair station certificate. Commenters added that 
mandatory audits should be required for noncertificated subcontractors 
only.
    Several commenters opposed some of the requirements regarding job 
functions contracted to a noncertificated person. Some commenters 
requested that the term ``job function'' be changed to ``maintenance/
job function.'' One commenter noted that the FAA's use of the terms 
``certificated repair station,'' ``contracting repair station,'' and 
``noncertificated person'' is not clear. Furthermore, several 
commenters noted that the FAA needs to clarify the supervisory role of 
the repair station.
    Many commenters contended that the prohibition against contracting 
out the maintenance of a complete type-certificated product is 
unrealistic and would not allow engines to be overhauled or 
nondestructive testing to be performed. Commenters added that this 
requirement prohibits a certificated repair station from sending a 
type-certificated product to the original equipment manufacturer for 
warranty or factory work. In addition, a foreign authority noted that 
this requirement may be too restrictive and recommended revising it to 
make it similar to the requirement in JAR 145. Other commenters noted 
that this prohibition would be costly to and limit the business 
flexibility of certificated repair stations.
    FAA Response: The FAA agrees that it is not necessary for a 
certificated repair station to survey another certificated repair 
station who performs a maintenance function under contract. This final 
rule does not include that provision. This final rule retains the 
requirement that a certificated repair station must ensure that a 
noncertificated person who performs a maintenance function under 
contract follows a quality control system equivalent to the system 
followed by the certificated repair station. The certificated repair 
station also must remain directly in charge of the work and verify, by 
test or inspection, that the work was performed satisfactorily and that 
the article is airworthy before approving the article for return to 
service. The FAA notes that ``directly in charge'' is defined in 
Sec. 145.3. The FAA also notes that with regard to the inspection 
requirement, a repair station is always responsible under Sec. 145.213 
for ensuring that an article is inspected and that a determination is 
made that the article is airworthy.
    In addition to the revisions discussed above, the FAA has revised 
``job function'' to read ``maintenance function.'' This section also 
contains

[[Page 41110]]

requirements for information previously proposed for inclusion in the 
repair station manual, such as the maintenance functions contracted to 
each outside facility and the name of the facility and the type of 
certificate and ratings, if any, held by each facility. With respect to 
contract maintenance, this final rule requires that a repair station 
manual must contain only the procedures for maintaining and revising 
this information. The FAA determined that because this information may 
be subject to frequent revision, it need not be included in the repair 
station manual. In addition, the final rule provides that the FAA must 
approve the maintenance function to be contracted to an outside source. 
The FAA notes that under the proposal, this information would have been 
included in the repair station manual, which was an approved manual.
    With regard to the prohibition against contracting out the 
maintenance, preventive maintenance, or alteration of a complete type-
certificated product, the FAA has clarified these provisions in 
response to commenters' concerns. The rule now provides that a 
certificated repair station may not provide only the approval for 
return to service of a complete type-certificated product following 
contract maintenance, preventive maintenance, or alterations. As noted 
in the proposal, this prohibition is intended to preclude ``paper 
only'' repair stations.

Section 145.219 (Proposed Sec. 145.217) Recordkeeping

    Summary of Proposal/Issue: The FAA based this proposed section on 
current Secs. 145.61 and 145.79. The proposal would have modified 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 was retained; however, 
the FAA proposed 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. The 
proposal also would have required that these records include a copy of 
the maintenance release and that the repair station provide a copy of 
an article's maintenance release, retrievable in English, to the owner 
or operator.
    In addition, the proposal required that a repair station make 
available to the Administrator or any authorized representative of the 
NTSB all maintenance records required to be kept by proposed 
Sec. 145.217. The proposed paragraph specified that the records be 
provided in English.
    Finally, the proposal specified those recordkeeping requirements 
that apply to repair stations located outside the United States.
    Comments: Commenters generally opposed the distinction made between 
repair stations located inside the United States and those located 
outside the United States, and contended that all similar repair 
stations should have identical recordkeeping requirements. Some 
commenters objected to the use of subjective terms, such as 
``adequate'' records, and stated that the FAA should establish an 
objective minimum standard. A few commenters suggested replacing the 
word ``owner'' in proposed paragraph (b) with ``customer'' or expanding 
the paragraph to require the repair station to give a copy of the work 
order to the owner's or operator's agent.
    FAA Response: The FAA has revised this section to simplify 
recordkeeping requirements. This final rule requires a certificated 
repair station to maintain in English those records that demonstrate 
compliance with the requirements of part 43. The rule no longer lists 
any specific records that must be maintained. The rule retains the 2-
year retention requirement and the requirement to provide a copy of the 
maintenance release to the owner or operator of the article. The FAA 
does not find it necessary to include language in the rule to permit a 
repair station to give a copy of the maintenance release to the owner 
or operator's agent. However, the rule does not preclude an owner or 
operator from making such arrangements between the repair station and 
the owner or operator of the aircraft. The rule also retains with minor 
editorial changes the requirement that the records be available for 
inspection by the FAA and the NTSB.
    The rule does not contain separate recordkeeping requirements for 
repair stations located inside the United States versus those located 
outside the United States. With regard to records required to be 
maintained by certificated repair stations located outside the United 
States, the FAA notes that the recordkeeping requirements do not apply 
to foreign-registered aircraft operated by foreign operators.

Section 145.221 (Proposed Sec. 145.219) Reports of Failures, 
Malfunctions, or Defects

    Summary of Proposal/Issue: 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 proposed to standardize 
the type of data reported under the service difficulty reporting system 
by specifically listing the information required when a repair station 
submits a report.
    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 Administrator 
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 proposed to eliminate this condition.
    Comments: One commenter stated that the proposal constitutes an 
invasion of privacy. One association stated that the FAA should 
consider the final rule recently published on service difficulty 
reports when adopting the final rule language for this requirement. 
That association also requested that the FAA define ``serious defect'' 
and ``recurring unairworthy condition.'' The association stated the FAA 
should make clear that ``recurring unairworthy conditions'' are those 
that are not contemplated or covered by data approved by or acceptable 
to the Administrator. Commenters recommended revising the time for 
reporting from 72 hours to 96 hours and using ``article'' where 
appropriate. Commenters opposed including the name and address of the 
operator in the report, because the report already includes the 
registration number, which can be used for obtaining the other 
information. Other commenters stated that the rule should be revised to 
ensure only one report is submitted for each service difficulty. One 
commenter stated that the rule should be expanded to include all part 
145 certificated repair stations.
    FAA Response: The FAA has revised this section to reflect recent 
revisions adopted in Amendment Nos. 121-279, 125-35, 135-77, and 145-
22, ``Service Difficulty Reports'' (65 FR 56192, September 15, 2000), 
including revising any ``serious defects'' or ``other unairworthy 
condition'' to read ``failure, malfunction, or defect,'' and increasing 
the time period for reporting from 72 hours to 96 hours. The FAA also 
clarified the reporting requirements proposed in paragraph (b) to 
require only the registration number of the aircraft rather than the 
name and address of the operator and to require ``time since last 
overhaul,'' if applicable.

[[Page 41111]]

Section 145.223 (Proposed Sec. 145.221) FAA Inspections

    Summary of Proposal/Issue: The FAA based this proposed section on 
current Sec. 145.23 and expanded it so the FAA would be able to inspect 
repair stations' contract maintenance providers. The FAA proposed to 
require that arrangements for contractors' services include provisions 
for inspection of the contractor by the FAA.
    Comments: Many commenters opposed proposed Sec. 145.221. Several 
commenters indicated that the language regarding inspecting any 
contractor is beyond the scope of aviation safety and should be 
removed. Commenters noted that the FAA already has the right to inspect 
certificated repair stations; however, the surveillance of 
noncertificated facilities should be the responsibility of the 
certificated repair station. Commenters stated that the FAA has no 
authority over noncertificated facilities that usually are non-aviation 
suppliers, and the agency has presented no safety reason or 
justification for inspecting them. Furthermore, several commenters 
added that this could have a negative economic impact on certificated 
repair stations. Other commenters noted that the surveillance of 
noncertificated facilities should be limited to the functions performed 
for the certificated repair station and are performed only when there 
is cause and proper notification. In addition, several commenters 
suggested that the rule should continue to require written notification 
by the FAA of any inspection findings.
    FAA Response: The FAA has revised the proposed requirement to 
provide that a certificated repair station may not contract for the 
performance of a maintenance function on an article with a 
noncertificated person unless it provides in its contract with the 
noncertificated person that the FAA may make an inspection and observe 
the performance of the noncertificated person's work on the article. 
This requirement no longer applies to certificated repair stations that 
are performing a maintenance function for another certificated repair 
station because the FAA already has the right to inspect the contract 
facility.
    The final rule also provides that a certificated repair station may 
not return to service any article on which a maintenance function was 
performed by a noncertificated person if the noncertificated person 
does not permit the FAA to make the inspection described in the 
paragraph above.
    With regard to the commenters who opposed the FAA's decision to 
remove the current provision that provides that a repair station will 
be notified in writing of any defects found during an inspection, the 
FAA notes that this is common FAA practice and need not be specified in 
regulatory language.

Part 91--General Operating and Flight Rules

Section 91.411  Altimeter System and Altitude Reporting Equipment Tests 
and Inspections

    Summary of Proposal/Issue: The proposal would have revised 
Sec. 91.411 to reflect the proposed ratings and classes. In addition, 
the FAA proposed to eliminate the provision relating to the limited 
rating for manufacturers.
    Comments: A foreign air carrier opposed the proposed specialized 
service rating.
    FAA Response: As previously noted, the FAA is not adopting the 
proposed ratings and classes. However, the final rule amends 
Sec. 91.411 by removing paragraph (b)(2)(v), which referred to the 
limited rating for manufacturers.

Section 91.413  ATC Transponder Tests and Inspections

    Summary of Proposal/Issue: The proposal would have revised 
Sec. 91.413 to reflect the proposed ratings and classes. In addition, 
the FAA proposed to eliminate the provision relating to the limited 
rating for manufacturers.
    Comments: A foreign air carrier opposed the proposed specialized 
service rating.
    FAA Response: As previously noted, the FAA is not adopting the 
proposed ratings and classes. However, the final rule amends 
Sec. 91.413 by removing paragraph (c)(1)(iv), which referred to the 
limited rating for manufacturers.

Appendix A to Part 91  Category II Operations: Manual, Instruments, 
Equipment, and Maintenance

    Summary of Proposal/Issue: The proposal would have revised appendix 
A to part 91 to reflect the proposed ratings and classes. In addition, 
the FAA proposed to eliminate the provision relating to the limited 
rating for manufacturers.
    Comments: No comments were received on this proposal.
    FAA Response: As previously noted, the FAA is not adopting the 
proposed ratings and classes. However, the final rule amends appendix A 
to part 91 by removing paragraph 4(b)(1)(iii), which referred to the 
limited rating for manufacturers.

Part 121--Operating Requirements: Domestic, Flag, and Supplemental 
Operations

Special Federal Aviation Regulation No. 36

    Summary of Proposal/Issue: The proposal would have revised 
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). The FAA 
also proposed to replace 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.''
    Comments: No comments were received on this proposal.
    FAA Response: The final rule is adopted as proposed except that the 
reference to proposed Sec. 145.215(b)(2) is revised to 
Sec. 145.201(c)(2) to correspond to the sections as they appear in this 
final rule.
    Section 121.378  Certificate Requirements
    Summary of Proposal/Issue: The FAA proposed to revise this section 
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 
word ``alteration'' to ``alterations.''
    Comments: No comments were received on this proposal.
    FAA Response: This section is adopted as proposed.

Section 121.709  Airworthiness Release or Aircraft Log Entry

    Summary of Proposal/Issue: The FAA proposed to revise this section 
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,'' and by designating that text as paragraph (c). The FAA also 
proposed to redesignate paragraphs (c) and (d) as paragraphs (d) and 
(e), respectively.
    Comments: No comments were received on this proposal.
    FAA Response: This section is adopted as proposed.

Part 135--Operating Requirements: Commuter and On Demand Operations 
and Rules Governing Persons on Board Such Aircraft

Section 135.435  Certificate Requirements

    Summary of Proposal/Issue: The FAA proposed to revise this section 
by replacing ``repair stations certificated

[[Page 41112]]

under the provisions of subpart C of part 145'' in paragraph (a) with 
``a certificated repair station that is located outside the United 
States.''
    Comments: No comments were received on this proposal.
    FAA Response: This section is adopted as proposed.

Section 135.443  Airworthiness Release or Aircraft Maintenance Log 
Entry

    Summary of Proposal/Issue: The FAA proposed to revise this section 
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,'' and by designating that text as paragraph (c). The FAA also 
proposed to re-designate paragraph (c) as paragraph (d).
    Comments: No comments were received on this proposal.
    FAA Response: This section is adopted as proposed.

Paperwork Reduction Act

    This final rule contains information collections that are subject 
to review by OMB under the Paperwork Reduction Act of 1995 (Pub. L. 
104-13). The request for review and approval has been submitted to OMB. 
An opportunity for comment on the paperwork portion of this rule was 
not provided during the NPRM stage. Therefore, there is a 60-day 
comment period attached to this final rule. The title, description, 
respondents, and description of the burden are shown below.
    Title: Part 145 Review: Repair Stations.
    Description: Under current regulations, certificate holders 
operating under part 145 certificated repair stations are required 
maintain an inspection procedures manual and comply with recordkeeping 
requirements. The objective of the amendment to part 145 is to update 
and revise the regulations for repair stations. The rule reorganizes 
the requirements applicable to repair stations to reduce duplication of 
regulatory language and eliminate obsolete information.
    The submittal and collection of information required by this part 
is necessary for (1) issuance of, renewal of, or amendment to repair 
station certificates and operations specifications, and (2) ensuring 
that each certificated repair station meets minimum acceptable 
standards.
    Description of Respondents: This rule will constitute several new 
paperwork burdens for repair station certificate holders. The FAA notes 
that the current information collection and recordkeeping requirements 
were approved under OMB assigned Control Numbers 2121-0003, 2120-0010, 
and 2120-0571.
    Description of Burden: The FAA expects that this rule will affect 
approximately 5,000 existing repair stations certificated under part 
145 and manufacturer's maintenance facilities. The estimated total 
reporting and recordkeeping burden is 1,801,700 hours and the estimated 
annual cost to the respondent is $27,025,500.
    The annual cost is determined by estimating the respondent's time 
required to complete and submit new applications, as well as applying 
for renewal or amendment to existing certificates. The estimate also 
includes the average time required to prepare the repair station 
manual, quality control manual, capability lists, subcontractors 
listing and training programs. Additionally, it includes the estimated 
time for respondents to prepare letters of recommendation for 
repairman, and to maintain records of supervisory and inspection 
personnel, and to prepare performance records and reports.

----------------------------------------------------------------------------------------------------------------
                Section                        Description          Occurrences        Hours        Total cost
----------------------------------------------------------------------------------------------------------------
Sec.  145.51..........................  Application.............             500             150          $2,250
Sec.  145.51(a)(1)....................  Repair station Manual...           5,000         400,000       6,000,000
Sec.  145.51(a)(2)....................  Quality Control Manual..           5,000         200,000       3,000,000
Sec.  145.51(a)(3)....................  List of Articles........           5,000          40,000         600,000
Sec.  145.51(a)(4)....................  Organization Chart......           5,000          20,000         300,000
Sec.  145.51(a)(5)....................  Description of                     5,000          20,000         600,000
                                         Facilities.
Sec.  145.51(a)(6)....................  List of Functions.......           5,000          40,000         600,000
Sec.  145.105.........................  Changes to Locations....             600           1,200          18,000
Sec.  145.107.........................  Satellite Repair                     600             150           2,225
                                         Stations.
Sec.  145.157.........................  Return to Service                    600           1,200          18,000
                                         Personnel.
Sec.  145.161.........................  Records of Management...           5,000          20,000         300,000
Sec.  145.163.........................  Training Requirements...           5,000         200,000       3,000,000
Sec.  145.213.........................  Maintenance Records.....          12,000          48,000         720,000
Sec.  145.215.........................  Capability List.........           3,000          36,000         540,000
Sec.  145.219.........................  Recordkeeping...........       3,000,000         750,000      11,250,000
Sec.  145.221.........................  Reports of Defects......           2,500          25,000         375,000
                                                                 -----------------------------------------------
    Total Burden to Respondents.......  ........................  ..............       1,801,700      27,025,500
----------------------------------------------------------------------------------------------------------------

    When an OMB control number is assigned, notification of that number 
will be published in the Federal Register.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to comply with 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
reviewed the corresponding ICAO Standards and Recommended Practices and 
has identified several differences.
    ICAO standards (Sec. 4.2.1.2 (e)) address human performance and 
limitations for aircraft maintenance license holders. Neither part 145 
nor part 65 address human performance and limitations.
    ICAO standards (Sec. 4.2.1.3) have a two-tier approach to mechanic 
certification. ICAO requires 4 years of experience, or 2 years with the 
completion of an approved training course. ICAO also allows mechanics 
to be certificated with restrictions--limiting their work to certain 
aircraft or aircraft systems--listed on their licenses. Part 145 
requires a minimum of 18 months of experience in order to be authorized 
to return articles back to service and to obtain certification as a 
repairman. The final rule mirrors part 65 requirements for 
certification as a mechanic or repairman that requires 18 months of 
experience and requires initial and recurrent training for all 
personnel assigned to perform maintenance, preventative maintenance, 
alterations, or inspections.

[[Page 41113]]

    ICAO standards (Sec. 4.2.2.2) require the privileges of an aircraft 
maintenance license holder to be annotated on their license. ICAO 
requires the aircraft, powerplant, or aircraft system, or component 
make/model be entered on the license. Neither part 145 nor part 65 
requires aircraft type, make, model, or aircraft system to be annotated 
on a mechanic's certificate.
    ICAO (Sec. 8.7.3.2) requires maintenance organizations to establish 
an independent quality assurance system (QA system) to monitor 
compliance with and adequacy of the procedures or by providing an 
inspection system to ensure all maintenance is properly performed. Part 
145 does not include provisions for a QA system based on adverse public 
comments and the lack of FAA guidance for these systems. Although the 
final rule does not explicitly require a QA system, the rule does 
include portions of a typical QA system, such as, the self-evaluation 
(audit) required prior to using capability lists, the addition of a 
quality control manual, and the inclusion of a maintenance personnel 
training program.
    ICAO (Sec. 8.7.7.2) requires certain information that constitutes 
the maintenance release: basic details of the maintenance performed, 
the date of the maintenance, the identity of the approved maintenance 
organization, and the identity of the person(s) signing the release. 
The final rule includes a section for personnel authorized to approve 
articles for return to service, but does not require all of the 
information the ICAO standards do. This information usually is required 
by the repair station's inspection system and is detailed in the repair 
station manual.

Regulatory Evaluation Summary

    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 requires agencies to analyze the 
economic effect of regulatory changes on small businesses and other 
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 
proposed rule: (1) Will generate benefits that justify its costs and is 
not a ``significant regulatory action'' as defined in the Executive 
Order; (2) is not significant as defined in the Department of 
Transportation's Regulatory Policies and Procedures; (3) will not have 
a significant impact on a substantial number of small entities; (4) 
will not constitute a barrier to international trade; and (5) will not 
contain any Federal intergovernmental or private sector mandate. These 
analyses are summarized here in the preamble, and the full Regulatory 
Evaluation is in the docket.
    The Federal Aviation Administration (FAA) is updating and revising 
the regulations for part 145 repair stations. The final rule is 
necessary because many of the current repair station regulations do not 
reflect changes in repair station business practices, advancements in 
technology, and aircraft maintenance practices. The benefits and costs 
have been calculated for 13 years.
    The estimated quantifiable safety benefits, being difficult to 
quantify, are calculated based on what the reduction in accidents needs 
to be in order to equate the discount costs to the discounted safety 
benefits. If the safety benefits are half of those discussed in the 
initial regulatory evaluation (6.9 total accidents will be avoided, 
preventing 2.2 fatalities, 1.7 serious injuries, and 2.7 minor 
injuries), then the quantifiable safety benefits of the final amendment 
will be approximately, $28.5 million in current dollars discounted at 7 
percent, over 13 years. On an annual basis (assuming that quantifiable 
benefits are only one-half of those estimated in the initial regulatory 
evaluation) an average of 3.4 total accidents will be avoided, 
preventing 1.1 fatalities, 0.8 serious injuries, and 1.4 minor 
injuries. The avoidance of 3.4 accidents will avert at a minimum the 
destruction of at least 2.4 general aviation aircraft and will avert 
the substantial damage of 0.7 general aviation aircraft. Property 
damage to other types of aircraft will also be averted.
    The estimated net cost of compliance after subtracting cost savings 
with the final amendment will be $22.2 million (net of cost savings) in 
current dollars, discounted at 7 percent, over 13 years. The most 
costly requirement, section 145.161, Training Requirements, will result 
in repair stations incurring discounted costs of $30.5 million. The 
most cost-saving requirement, the Manufacturer's Service Manual, will 
result in repair stations saving between $22.8 and $45.5 million 
discounted.
    The final rule is not expected to have a significant impact on 
international trade nor is it expected to have a significant impact on 
a substantial number of small firms.

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 RFA is not required. The 
certification must include a statement providing the factual basis for 
this determination, and the reasoning should be clear.
    In many cases, the Small Business Administration suggests that 
``small'' represents the impacted entities with an annual revenue of $5 
million or less. For this final rule, a small entity group is defined 
as aircraft servicing and repairing, except on a factory basis 
(Standard Industrial Classification Code 4581). At present, it is 
difficult for the FAA to determine exactly how many of these repair 
stations have an annual revenue of $5 million or less but believes that 
the number is probably large. The FAA found a minimum of 19 repair 
stations in the World Aviation Directory that meet this definition.
    For each of these entities the FAA attempted to find the annual 
sales from World Aviation Directory 1998, the Net Present Value of 
Costs, and annualized costs. After calculating the annualized costs 
accounting for firm size using the same assumptions that were used in 
the cost section, the FAA then compared the annualized costs with 
annual sales.
    As stated earlier, a minimum of 19 repair stations meet this 
standard. For the smallest entity listed in table C1, one company with 
three employees had

[[Page 41114]]

sales of $500,000 and another company with 9 employees had sales of 
$300,000. The annualized cost of the final rule is very small in 
comparison to annual sales of the affected entities--considerably less 
than 1 percent of their sales. At most, the final rule will impose an 
annualized cost on one small entity that is approximately 0.1 percent 
of its annual sales. Therefore, the FAA does not consider the costs 
imposed by this final rule to have a significant impact on a 
substantial number of small entities.
    Furthermore, the FAA has rewritten several provisions that provide 
regulatory flexibility, especially for small entities. Two of these 
provisions relate to capability lists and repair station manuals. In 
addition, one set of provisions on quality assurance has been deleted 
from the final rule because of the disproportionate impact on small 
entities. The following discussion addresses each of these three 
subjects.

Capability List

    The final rule allows for use of a capability list. The use of this 
list provides regulatory flexibility because it provides repair 
stations with a limited rating the option not having to always change 
its operations specifications under the existing rule--a repair station 
that performs maintenance, preventive maintenance or alterations on 
articles must do so in accordance with its operations specifications. 
Under the final rule, a repair station with a limited rating may use a 
capability list, and will no longer have to revise its operations 
specifications each time a new article is added to the list (however, 
the final rule retains the requirement that a repair station perform a 
self-evaluation before adding an article to its capability list).
    For example, existing Sec. 145.11(a)(4) requires that an applicant 
for a propeller rating (class 2) prepares a list of each propeller for 
which the repair station seeks approval. Revisions to the current list 
require FAA approval, which makes timely revisions cumbersome in the 
dynamic maintenance marketing environment.
    The FAA believes that repair stations that choose to use a 
capability list will incur cost savings. Since the FAA does not know 
how many repair stations with limited ratings will choose this option 
or how frequently they will choose this option, it is not possible at 
this time to quantify the cost savings.

Repair Station Manuals

    Based on FAA statistics and information provided by industry that 
was used in the preliminary regulatory evaluation, repair stations are 
estimated to employ approximately 12,877 supervisors and at least 
13,444 inspectors. These repair stations must maintain approximately 
26,321 IPMs. Because of the complexity of many repair stations' 
operations, the repair stations should document additional aspects of 
their operations not covered in the current IPM. Therefore, the FAA 
will eliminate the requirements that repair stations maintain an IPM 
and replace it with a requirement that repair stations maintain an 
acceptable quality control and require the repair station to maintain a 
repair station manual to document operational procedures. Also, the 
current requirement for all repair stations' supervisory and inspection 
personnel to each have a copy of the manual has been withdrawn. In the 
final rule, only 4,625 repair station manuals will be required to be 
maintained, so the total number of required manuals will be reduced by 
21,696. Final Sec. 145.207 will require only that the repair station 
manual be accessible for use by repair station personnel. Furthermore, 
the since smaller repair stations do not perform as complex operations 
as do larger repair stations (due to the number of employees, duties, 
and responsibilities), the cost for the smaller repair station to 
revise their IPM and to meet the requirements of final Sec. 145.209 is 
approximately half that of a larger repair station.

Deletion of Quality Assurance

    Proposed Sec. 145.201 required each repair station to establish and 
maintain a quality assurance system acceptable to the Administrator. 
The FAA estimated that repair stations were going to incur a total one-
time cost of approximately $1,471,400 and annual costs of approximately 
$12,123,200 on this quality assurance system. However, for the final 
rule, the FAA withdrew this requirement and, therefore, no cost will be 
incurred by these repair stations for the quality assurance system. As 
stated in the Preamble, the FAA has removed the quality assurance 
requirements from the final rule and any references to it have been 
removed from the manual requirements. The FAA intends to issue a 
subsequent SNPRM that will address this issue.
    The FAA has determined that this final rule will not have a 
significant impact on a substantial number of small entities. 
Accordingly, pursuant to the Regulatory Flexibility Act, 5 U.S.C. 605 
(b), the Federal Aviation Administration certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities.

International Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from 
engaging in any standards or related activities that create unnecessary 
obstacles to the foreign commerce of the United States. Legitimate 
domestic objectives, such as safety, are not considered unnecessary 
obstacles. The statute also requires consideration of international 
standards and where appropriate, that they be the basis for U.S. 
standards. In addition, consistent with the Administration's belief in 
the general superiority and desirability of free trade, it is the 
policy of the Administration 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 barriers affecting the import of foreign goods and 
services into the United States.
    The final rule 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 final rule is consistent with 
the terms of several trade agreements to which the United States is a 
signatory, such as the Trade Agreement Act of 1979 (19 U.S.C. 2501 et 
seq.), incorporating the Agreement on Trade in Civil Aircraft (31 
U.S.T. 619) and the Agreement on Technical Barriers to Trade 
(Standards) (19 U.S.C. 2531), as well as the General Agreement on Trade 
in Services (19 U.S.C. 3511). The revision to part 145 is also 
consistent with 49 U.S.C. 40105, formerly 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

    The Unfunded Mandates Reform Act of 1995 (the Act), enacted as 
Public Law 104-4 on March 22, 1995, is intended, among other things, to 
curb the practice of imposing unfunded Federal mandates on State, 
local, and tribal governments. Title II of the Act requires each 
Federal agency to prepare a written statement assessing the effects of 
any Federal mandate in a proposed or final agency rule that may result 
in a $100 million or more expenditure (adjusted annually for inflation) 
in any one year by State, local, and tribal governments, in the 
aggregate, or by the private sector; such a mandate

[[Page 41115]]

is deemed to be a ``significant regulatory action.''
    These final rule does not meet the cost thresholds described above. 
Furthermore, this final rule will not impose a significant cost or 
uniquely affect small governments. Therefore, the requirements of Title 
II of the Unfunded Mandates Reform Act of 1995 do not apply.

Executive Order 3132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. We determined that this 
action will not have a substantial direct effect on the States, or the 
relationship between the national Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, we determined that this final rule does not have 
federalism implications.

Plain Language

    In response to the June 1, 1998, Presidential Memorandum regarding 
the use of plain language, the FAA reexamined the writing style 
currently used in the development of regulations. The memorandum 
requires Federal agencies to communicate clearly with the public. We 
are interested in your comments on whether the style of this document 
is clear, and in any other suggestions you might have to improve the 
clarity of FAA communications that affect you. You can get more 
information about the Presidential Memorandum and the plain language 
initiative at http://www.plainlanguage.gov.

Environmental Analysis

    FAA Order 1050.1D defines FAA actions that may be categorically 
excluded from preparation of a National Environmental Policy Act (NEPA) 
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 notice has been assessed in accordance 
with the Energy Policy and Conservation Act (EPCA), enacted as Public 
Law 94-163, as amended (42 U.S.C. 6362), and FAA Order 1053.1. It has 
been determined that the final rule is not a major regulatory action 
under the provisions of the EPCA.

Cross Reference Table

    To identify where we have located present requirements in the final 
rule, we have provided the following cross reference table.

                                              Cross-Reference Table
----------------------------------------------------------------------------------------------------------------
                   Old section                                             New section(s)
----------------------------------------------------------------------------------------------------------------
Sec.  145.1......................................  Sec.  145.1
Sec.  145.2......................................  Sec.  145.205
Sec.  145.3......................................  Sec.  145.5
Sec.  145.11.....................................  Secs.  145.51 and 145.53
Sec.  145.13.....................................  Sec.  145.51
Sec.  145.15.....................................  Secs.  145.55 and 145.57
Sec.  145.17.....................................  Sec.  145.55
Sec.  145.19.....................................  Sec.  145.5
Sec.  145.21.....................................  Sec.  145.105
Sec.  145.23.....................................  Sec.  145.223
Sec.  145.25.....................................  Deleted
Sec.  145.31.....................................  Sec.  145.59
Sec.  145.33.....................................  Sec.  145.61
Sec.  145.35.....................................  Sec.  145.103
Sec.  145.37.....................................  Sec.  145.103
Sec.  145.39.....................................  Secs.  145.151 and 145.153
Sec.  145.41.....................................  Sec.  145.159
Sec.  145.43.....................................  Sec.  145.161
Sec.  145.45.....................................  Secs.  145.155 and 145.211
Sec.  145.47.....................................  Secs.  145.109 and 145.217
Sec.  145.49.....................................  Sec.  145.109
Sec.  145.51.....................................  Secs.  145.107, 145.201, and 145.203
Sec.  145.53.....................................  Sec.  145.201
Sec.  145.55.....................................  Sec.  145.101
Sec.  145.57.....................................  Secs.  145.109 and 145.201
Sec.  145.59.....................................  Secs.  145.157 and 145.213
Sec.  145.61.....................................  Sec.  145.219
Sec.  145.63.....................................  Sec.  145.221
Sec.  145.71.....................................  Sec.  145.51
Sec.  145.73.....................................  Secs.  145.53 and 145.201
Sec.  145.75.....................................  Secs.  145.151, 145.153, 145.155 and 145.157
Sec.  145.77.....................................  Sec.  145.201
Sec.  145.79.....................................  Secs.  145.219 and 145.221
Sec.  145.101....................................  Deleted.
Sec.  145.103....................................  Deleted.
Sec.  145.105....................................  Deleted.
Appendix A.......................................  Deleted.
----------------------------------------------------------------------------------------------------------------


                                              Cross-Reference Table
----------------------------------------------------------------------------------------------------------------
                 New section                                             Old section(s)
----------------------------------------------------------------------------------------------------------------
Sec.  145.1..................................  Sec.  145.1
Sec.  145.3..................................  New.

[[Page 41116]]

 
Sec.  145.5..................................  Sec.  145.3 and 145.19
Sec.  145.51.................................  Secs.  145.11, 145.13, and 145.71
Sec.  145.53.................................  Secs.  145.11 and 145.73
Sec.  145.55.................................  Secs.  145.15 and 145.17
Sec.  145.57.................................  Sec.  145.15
Sec.  145.59.................................  Sec.  145.31
Sec.  145.61.................................  Sec.  145.33
Sec.  145.101................................  Sec.  145.55
Sec.  145.103................................  Secs.  145.35 and 145.37
Sec.  145.105................................  Sec.  145.21
Sec.  145.107................................  Sec.  145.51
Sec.  145.109................................  Secs.  145.47, 145.49, and 145.57
Sec.  145.151................................  Secs.  145.39 and 145.75
Sec.  145.153................................  Secs.  145.39 and 145.75
Sec.  145.155................................  Secs.  145.45 and 145.75
Sec.  145.157................................  Secs.  145.59 and 145. 75
Sec.  145.159................................  Sec.  145.41
Sec.  145.161................................  Sec.  145.43
Sec.  145.163................................  New.
Sec.  145.201................................  Secs.  145.51, 145.53, 145.57, 145.73, and 145.77
Sec.  145.203................................  Sec.  145.51
Sec.  145.205................................  Sec.  145.2
Sec.  145.207................................  New.
Sec.  145.209................................  New.
Sec.  145.211................................  145.45
Sec.  145.213................................  145.59
Sec.  145.215................................  New.
Sec.  145.217................................  145.47
Sec.  145.219................................  145.61 and 145.79
Sec.  145.221................................  145.63 and 145.79
Sec.  145.223................................  145.23
----------------------------------------------------------------------------------------------------------------

List of Subjects

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, Aviation safety, 
Safety.

14 CFR Part 145

    Air carriers, Air transportation, Aircraft, Aviation safety, 
Recordkeeping and reporting, Safety.

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends parts 91, 121, 135, and 145 of Title 14, Code of 
Federal Regulations as follows:

PART 91--GENERAL OPERATING AND FLIGHT RULES

    1. The authority citation for part 91 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 1155, 40103, 40113, 40120, 44101, 
44111, 44701, 44709, 44711, 44712, 44715, 44716, 44717, 44722, 
46306, 46315, 46316, 46504, 46506-46507, 47122, 47508, 47528-47531; 
articles 12 and 29 of the Convention on International Civil Aviation 
(61 stat. 1180).


Sec. 91.411  [Amended]

    2. Amend Sec. 91.411 by removing paragraph (b)(2)(v).


Sec. 91.413  [Amended]

    3. Amend Sec. 91.413 by removing paragraph (c)(1)(iv).

Appendix A to Part 91  [Amended]

    4. Amend appendix A to part 91 by removing paragraph 4(b)(1)(iii).

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

    5. 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.


    6. Amend Special Federal Aviation Regulation No. 36 by revising 
paragraph (2)(c) to read as follows:

Special Federal Aviation Regulation No. 36

* * * * *
    (2) * * *
    (c) Contrary provisions of Sec. 145.201(c)(2) 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 FAA 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.
* * * * *


    7. Amend Sec. 121.378 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.
* * * * *

    8. Amend Sec. 121.709 by revising paragraph (b); redesignating 
paragraphs (c) and (d) as paragraphs (d) and (e), respectively, and 
adding a new

[[Page 41117]]

paragraph (c), and revising redesignated paragraphs (d) and (e) to read 
as follows:


Sec. 121.709  Airworthiness release or aircraft log entry.

* * * * *
    (b) The airworthiness release or log entry required by paragraph 
(a) of this section must--
    (1) Be prepared in accordance with the procedures set forth in the 
certificate holder's manual;
    (2) Include a certification that--
    (i) The work was performed in accordance with the requirements of 
the certificate holder's manual;
    (ii) All items required to be inspected were inspected by an 
authorized person who determined that the work was satisfactorily 
completed;
    (iii) No known condition exists that would make the airplane 
unairworthy; and
    (iv) So far as the work performed is concerned, the aircraft is in 
condition for safe operation; and
    (3) Be signed by an authorized certificated mechanic or repairman 
except that a certificated repairman may sign the release or entry only 
for the work for which he is employed and certificated.
    (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) When an airworthiness release form is prepared the certificate 
holder must give a copy to the pilot in command and must keep a record 
thereof for at least 2 months.
    (e) Instead of restating each of the conditions of the 
certification required by paragraph (b) of this section, the air 
carrier may state in its manual that the signature of an authorized 
certificated mechanic or repairman constitutes that certification.

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON-DEMAND OPERATIONS 
AND RULES GOVERNING PERSONS ON BOARD SUCH AIRCRAFT

    9. 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.


    10. Amend Sec. 135.435 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.
* * * * *

    11. Amend Sec. 135.443 paragraph (b), redesignating paragraph (c) 
as paragraph (d) and revising it, and adding a new paragraph (c) to 
read as follows:


Sec. 135.443  Airworthiness release or aircraft maintenance log entry.

* * * * *
    (b) The airworthiness release or log entry required by paragraph 
(a) of this section must--
    (1) Be prepared in accordance with the procedure in the certificate 
holder's manual;
    (2) Include a certification that--
    (i) The work was performed in accordance with the requirements of 
the certificate holder's manual;
    (ii) All items required to be inspected were inspected by an 
authorized person who determined that the work was satisfactorily 
completed;
    (iii) No known condition exists that would make the aircraft 
unairworthy; and
    (iv) So far as the work performed is concerned, the aircraft is in 
condition for safe operation; and
    (3) Be signed by an authorized certificated mechanic or repairman, 
except that a certificated repairman may sign the release or entry only 
for the work for which that person is employed and for which that 
person is certificated.
    (c) Notwithstanding paragraph (b)(3) of this section, after 
maintenance, preventive maintenance, or alterations performed by a 
repair station 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 paragraph (b) of this section, the 
certificate holder may state in its manual that the signature of an 
authorized certificated mechanic or repairman constitutes that 
certification.

    12. Amend part 145 as follows:
    A. The authority citation continues to read:

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

    B. By removing Appendix A.
    C. By revising subparts A through D to read as follows (SFAR No. 36 
Note remains unchanged):

PART 145--REPAIR STATIONS

* * * * *
Sec.
Subpart A--General
145.1   Applicability.
145.3   Definition of terms.
145.5   Certificate and operations specifications requirements.
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.
145.61   Limited ratings.
Subpart C--Housing, Facilities, Equipment, Materials, and Data
145.101   General.
145.103   Housing and facilities requirements.
145.105   Change of location, housing, or facilities.
145.107   Satellite repair stations.
145.109   Equipment, materials, and data requirements.
Subpart D--Personnel
145.151   Personnel requirements.
145.153   Supervisory personnel requirements.
145.155   Inspection personnel requirements.
145.157   Personnel authorized to approve an article for return to 
service.
145.159   Recommendation of a person for certification as a 
repairman.
145.161   Records of management, supervisory, and inspection 
personnel.
145.163   Training requirements.
Subpart E--Operating Rules
145.201   Privileges and limitations of certificate.
145.203   Work performed at another location.
145.205   Maintenance, preventive maintenance, and alterations 
performed 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.
145.207   Repair station manual.
145.209   Repair station manual contents.
145.211   Quality control system.
145.213   Inspection of maintenance, preventive maintenance, or 
alterations.
145.215   Capability list.
145.217   Contract maintenance.
145.219   Recordkeeping.
145.221   Reports of failures, malfunctions, or defects.
145.223   FAA inspections.
* * * * *

[[Page 41118]]

Subpart A--General


Sec. 145.1  Applicability.

    This part describes how to obtain a repair station certificate. 
This part also contains the rules a certificated repair station must 
follow related to its performance of maintenance, preventive 
maintenance, or alterations of an aircraft, airframe, aircraft engine, 
propeller, appliance, or component part to which part 43 applies. It 
also applies to any person who holds, or is required to hold, a repair 
station certificate issued under this part.


Sec. 145.3  Definition of terms.

    For the purposes of this part, the following definitions apply:
    (a) Accountable manager means the person designated by the 
certificated repair station who is responsible for and has the 
authority over all repair station operations that are conducted under 
part 145, including ensuring that repair station personnel follow the 
regulations and serving as the primary contact with the FAA.
    (b) Article means an aircraft, airframe, aircraft engine, 
propeller, appliance, or component part.
    (c) Directly in charge means having the responsibility for the work 
of a certificated repair station that performs maintenance, preventive 
maintenance, alterations, or other functions affecting aircraft 
airworthiness. A person directly in charge does not need to physically 
observe and direct each worker constantly but must be available for 
consultation on matters requiring instruction or decision from higher 
authority.
    (d) Line maintenance means--
    (1) Any unscheduled maintenance resulting from unforeseen events; 
or
    (2) Scheduled checks that contain servicing and/or inspections that 
do not require specialized training, equipment, or facilities.


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, ratings, or 
operations specifications issued under this part.
    (b) The certificate and operations specifications issued to a 
certificated repair station must be available on the premises for 
inspection by the public and the FAA.

Subpart B--Certification


Sec. 145.51  Application for certificate.

    (a) An application for a repair station certificate and rating must 
be made in a format acceptable to the FAA and must include the 
following:
    (1) A repair station manual acceptable to the FAA as required by 
Sec. 145.207;
    (2) A quality control manual acceptable to the FAA as required by 
Sec. 145.211(c);
    (3) A list by type, make, or model, as appropriate, of each article 
for which the application is made;
    (4) An organizational chart of the repair station and the names and 
titles of managing and supervisory personnel;
    (5) A description of the housing and facilities, including the 
physical address, in accordance with Sec. 145.103;
    (6) A list of the maintenance functions, for approval by the FAA, 
to be performed for the repair station under contract by another person 
in accordance with Sec. 145.217; and
    (7) A training program for approval by the FAA in accordance with 
Sec. 145.163.
    (b) The equipment, personnel, technical data, and housing and 
facilities required for the certificate and rating, or for an 
additional rating must be in place for inspection at the time of 
certification or rating approval by the FAA. An applicant may meet the 
equipment requirement of this paragraph if the applicant has a contract 
acceptable to the FAA with another person to make the equipment 
available to the applicant at the time of certification and at any time 
that it is necessary when the relevant work is being performed by the 
repair station.
    (c) In addition to meeting the other applicable requirements for a 
repair station certificate and rating, an applicant for a repair 
station certificate and rating located outside the United States must 
meet the following requirements:
    (1) The applicant must show that the repair station certificate 
and/or rating is necessary for maintaining or altering the following:
    (i) U.S.-registered aircraft and articles for use on U.S.-
registered aircraft, or
    (ii) Foreign-registered aircraft operated under the provisions of 
part 121 or part 135, and articles for use on these aircraft.
    (2) The applicant must show that the fee prescribed by the FAA has 
been paid.
    (d) An application for an additional rating, amended repair station 
certificate, or renewal of a repair station certificate must be made in 
a format acceptable to the FAA. The application must include only that 
information necessary to substantiate the change or renewal of the 
certificate.


Sec. 145.53  Issue of certificate.

    (a) Except as provided in paragraph (b) of this section, a person 
who meets the requirements of this part is entitled to a repair station 
certificate with appropriate ratings prescribing such operations 
specifications and limitations as are necessary in the interest of 
safety.
    (b) If the person is located in a country with which the United 
States has a bilateral aviation safety agreement, the FAA may find that 
the person meets the requirements of this part based on a certification 
from the civil aviation authority of that country. This certification 
must be made in accordance with implementation procedures signed by the 
Administrator or the Administrator's designee.


Sec. 145.55  Duration and renewal of certificate.

    (a) A certificate or rating issued to a repair station located in 
the United States is effective from the date of issue until the repair 
station surrenders it or the FAA suspends or revokes it.
    (b) A certificate or rating issued to a repair station located 
outside the United States is effective from the date of issue until the 
last day of the 12th month after the date of issue unless the repair 
station surrenders the certificate or the FAA suspends or revokes it. 
The FAA may renew the certificate or rating for 24 months if the repair 
station has operated in compliance with the applicable requirements of 
part 145 within the preceding certificate duration period.
    (c) A certificated repair station located outside the United States 
that applies for a renewal of its repair station certificate must--
    (1) Submit its request for renewal no later than 30 days before the 
repair station's current certificate expires. If a request for renewal 
is not made within this period, the repair station must follow the 
application procedures in Sec. 145.51.
    (2) Send its request for renewal to the FAA office that has 
jurisdiction over the certificated repair station.
    (d) The holder of an expired, surrendered, suspended, or revoked 
certificate must return it to the FAA.


Sec. 145.57  Amendment to or transfer of certificate.

    (a) The holder of a repair station certificate must apply for a 
change to its certificate in a format acceptable to the FAA. A change 
to the certificate is necessary if the certificate holder--
    (1) Changes the location of the repair station, or
    (2) Requests to add or amend a rating.
    (b) If the holder of a repair station certificate sells or 
transfers its assets, the new owner must apply for an amended 
certificate in accordance with Sec. 145.51.

[[Page 41119]]

Sec. 145.59  Ratings.

    The following ratings are issued under this subpart:
    (a) Airframe ratings.
    (1) Class 1: Composite construction of small aircraft.
    (2) Class 2: Composite construction of large aircraft.
    (3) Class 3: All-metal construction of small aircraft.
    (4) Class 4: All-metal construction of large aircraft.
    (b) Powerplant ratings.
    (1) Class 1: Reciprocating engines of 400 horsepower or less.
    (2) Class 2: Reciprocating engines of more than 400 horsepower.
    (3) Class 3: Turbine engines.
    (c) Propeller ratings.
    (1) Class 1: Fixed-pitch and ground-adjustable propellers of wood, 
metal, or composite construction.
    (2) Class 2: Other propellers, by make.
    (d) Radio ratings.
    (1) Class 1: Communication equipment. Radio transmitting and/or 
receiving equipment used in an aircraft to send or receive 
communications in flight, regardless of carrier frequency or type of 
modulation used. This equipment includes auxiliary and related aircraft 
interphone systems, amplifier systems, electrical or electronic 
intercrew signaling devices, and similar equipment. This equipment does 
not include equipment used for navigating or aiding navigation of 
aircraft, equipment used for measuring altitude or terrain clearance, 
other measuring equipment operated on radio or radar principles, or 
mechanical, electrical, gyroscopic, or electronic instruments that are 
a part of communications radio equipment.
    (2) Class 2: Navigational equipment. A radio system used in an 
aircraft for en route or approach navigation. This does not include 
equipment operated on radar or pulsed radio frequency principles, or 
equipment used for measuring altitude or terrain clearance.
    (3) Class 3: Radar equipment. An aircraft electronic system 
operated on radar or pulsed radio frequency principles.
    (e) Instrument ratings.
    (1) Class 1: Mechanical. A diaphragm, bourdon tube, aneroid, 
optical, or mechanically driven centrifugal instrument used on aircraft 
or to operate aircraft, including tachometers, airspeed indicators, 
pressure gauges drift sights, magnetic compasses, altimeters, or 
similar mechanical instruments.
    (2) Class 2: Electrical. Self-synchronous and electrical-indicating 
instruments and systems, including remote indicating instruments, 
cylinder head temperature gauges, or similar electrical instruments.
    (3) Class 3: Gyroscopic. An instrument or system using gyroscopic 
principles and motivated by air pressure or electrical energy, 
including automatic pilot control units, turn and bank indicators, 
directional gyros, and their parts, and flux gate and gyrosyn 
compasses.
    (4) Class 4: Electronic. An instrument whose operation depends on 
electron tubes, transistors, or similar devices, including capacitance 
type quantity gauges, system amplifiers, and engine analyzers.
    (f) Accessory ratings.
    (1) Class 1: A mechanical accessory that depends on friction, 
hydraulics, mechanical linkage, or pneumatic pressure for operation, 
including aircraft wheel brakes, mechanically driven pumps, 
carburetors, aircraft wheel assemblies, shock absorber struts and 
hydraulic servo units.
    (2) Class 2: An electrical accessory that depends on electrical 
energy for its operation, and a generator, including starters, voltage 
regulators, electric motors, electrically driven fuel pumps magnetos, 
or similar electrical accessories.
    (3) Class 3: An electronic accessory that depends on the use of an 
electron tube transistor, or similar device, including supercharger, 
temperature, air conditioning controls, or similar electronic controls.


Sec. 145.61  Limited ratings.

    (a) The FAA may issue a limited rating to a certificated repair 
station that maintains or alters only a particular type of airframe, 
powerplant, propeller, radio, instrument, or accessory, or part 
thereof, or performs only specialized maintenance requiring equipment 
and skills not ordinarily performed under other repair station ratings. 
Such a rating may be limited to a specific model aircraft, engine, or 
constituent part, or to any number of parts made by a particular 
manufacturer.
    (b) The FAA issues limited ratings for--
    (1) Airframes of a particular make and model;
    (2) Engines of a particular make and model;
    (3) Propellers of a particular make and model;
    (4) Instruments of a particular make and model;
    (5) Radio equipment of a particular make and model;
    (6) Accessories of a particular make and model;
    (7) Landing gear components;
    (8) Floats, by make;
    (9) Nondestructive inspection, testing, and processing;
    (10) Emergency equipment;
    (11) Rotor blades, by make and model; and
    (12) Aircraft fabric work.
    (c) For a limited rating for specialized services, the operations 
specifications of the repair station must contain the specification 
used to perform the specialized service. The specification may be--
    (1) A civil or military specification currently used by industry 
and approved by the FAA, or
    (2) A specification developed by the applicant and approved by the 
FAA.

Subpart C--Housing, Facilities, Equipment, Materials, and Data


Sec. 145.101  General.

    A certificated repair station must provide housing, facilities, 
equipment, materials, and data that meet the applicable requirements 
for the issuance of the certificate and ratings the repair station 
holds.


Sec. 145.103  Housing and facilities requirements.

    (a) Each certificated repair station must provide--
    (1) Housing for the facilities, equipment, materials, and personnel 
consistent with its ratings.
    (2) Facilities for properly performing the maintenance, preventive 
maintenance, or alterations of articles or the specialized services for 
which it is rated. Facilities must include the following:
    (i) Sufficient work space and areas for the proper segregation and 
protection of articles during all maintenance, preventive maintenance, 
or alterations;
    (ii) Segregated work areas enabling environmentally hazardous or 
sensitive operations such as painting, cleaning, welding, avionics 
work, electronic work, and machining to be done properly and in a 
manner that does not adversely affect other maintenance or alteration 
articles or activities;
    (iii) Suitable racks, hoists, trays, stands, and other segregation 
means for the storage and protection of all articles undergoing 
maintenance, preventive maintenance, or alterations;
    (iv) Space sufficient to segregate articles and materials stocked 
for installation from those articles undergoing maintenance, preventive 
maintenance, or alterations; and
    (v) Ventilation, lighting, and control of temperature, humidity, 
and other climatic conditions sufficient to ensure personnel perform 
maintenance, preventive maintenance, or alterations to the standards 
required by this part.
    (b) A certificated repair station with an airframe rating must 
provide suitable

[[Page 41120]]

permanent housing to enclose the largest type and model of aircraft 
listed on its operations specifications.
    (c) A certificated repair station may perform maintenance, 
preventive maintenance, or alterations on articles outside of its 
housing if it provides suitable facilities that are acceptable to the 
FAA and meet the requirements of Sec. 145.103(a) so that the work can 
be done in accordance with the requirements of part 43 of this chapter.


Sec. 145.105  Change of location, housing, or facilities.

    (a) A certificated repair station may not change the location of 
its housing without written approval from the FAA.
    (b) A certificated repair station may not make any changes to its 
housing or facilities required by Sec. 145.103 that could have a 
significant effect on its ability to perform the maintenance, 
preventive maintenance, or alterations under its repair station 
certificate and operations specifications without written approval from 
the FAA.
    (c) The FAA may prescribe the conditions, including any 
limitations, under which a certificated repair station must operate 
while it is changing its location, housing, or facilities.


Sec. 145.107  Satellite repair stations.

    (a) A certificated repair station under the managerial control of 
another certificated repair station may operate as a satellite repair 
station with its own certificate issued by the FAA. A satellite repair 
station--
    (1) May not hold a rating not held by the certificated repair 
station with managerial control;
    (2) Must meet the requirements for each rating it holds;
    (3) Must submit a repair station manual acceptable to the FAA as 
required by Sec. 145.207; and
    (4) Must submit a quality control manual acceptable to the FAA as 
required by Sec. 145.211(c).
    (b) Unless the FAA indicates otherwise, personnel and equipment 
from the certificated repair station with managerial control and from 
each of the satellite repair stations may be shared. However, 
inspection personnel must be designated for each satellite repair 
station and available at the satellite repair station any time a 
determination of airworthiness or return to service is made. In other 
circumstances, inspection personnel may be away from the premises but 
must be available by telephone, radio, or other electronic means.
    (c) A satellite repair station may not be located in a country 
other than the domicile country of the certificated repair station with 
managerial control.


Sec. 145.109  Equipment, materials, and data requirements.

    (a) Except as otherwise prescribed by the FAA, a certificated 
repair station must have the equipment, tools, and materials necessary 
to perform the maintenance, preventive maintenance, or alterations 
under its repair station certificate and operations specifications in 
accordance with part 43. The equipment, tools, and material must be 
located on the premises and under the repair station's control when the 
work is being done.
    (b) A certificated repair station must ensure all test and 
inspection equipment and tools used to make airworthiness 
determinations on articles are calibrated to a standard acceptable to 
the FAA.
    (c) The equipment, tools, and material must be those recommended by 
the manufacturer of the article or must be at least equivalent to those 
recommended by the manufacturer and acceptable to the FAA.
    (d) A certificated repair station must maintain, in a format 
acceptable to the FAA, the documents and data required for the 
performance of maintenance, preventive maintenance, or alterations 
under its repair station certificate and operations specifications in 
accordance with part 43. The following documents and data must be 
current and accessible when the relevant work is being done:
    (1) Airworthiness directives,
    (2) Instructions for continued airworthiness,
    (3) Maintenance manuals,
    (4) Overhaul manuals,
    (5) Standard practice manuals,
    (6) Service bulletins, and
    (7) Other applicable data acceptable to or approved by the FAA.

Subpart D--Personnel


Sec. 145.151  Personnel requirements.

    Each certificated repair station must--
    (a) Designate a repair station employee as the accountable manager;
    (b) Provide qualified personnel to plan, supervise, perform, and 
approve for return to service the maintenance, preventive maintenance, 
or alterations performed under the repair station certificate and 
operations specifications;
    (c) Ensure it has a sufficient number of employees with the 
training or knowledge and experience in the performance of maintenance, 
preventive maintenance, or alterations authorized by the repair station 
certificate and operations specifications to ensure all work is 
performed in accordance with part 43; and
    (d) Determine the abilities of its noncertificated employees 
performing maintenance functions based on training, knowledge, 
experience, or practical tests.


Sec. 145.153  Supervisory personnel requirements.

    (a) A certificated repair station must ensure it has a sufficient 
number of supervisors to direct the work performed under the repair 
station certificate and operations specifications. The supervisors must 
oversee the work performed by any individuals who are unfamiliar with 
the methods, techniques, practices, aids, equipment, and tools used to 
perform the maintenance, preventive maintenance, or alterations.
    (b) Each supervisor must--
    (1) If employed by a repair station located inside the United 
States, be certificated under part 65.
    (2) If employed by a repair station located outside the United 
States--
    (i) Have a minimum of 18 months of practical experience in the work 
being performed; or
    (ii) Be trained in or thoroughly familiar with the methods, 
techniques, practices, aids, equipment, and tools used to perform the 
maintenance, preventive maintenance, or alterations.
    (c) A certificated repair station must ensure its supervisors 
understand, read, and write English.


Sec. 145.155  Inspection personnel requirements.

    (a) A certificated repair station must ensure that persons 
performing inspections under the repair station certificate and 
operations specifications are--
    (1) Thoroughly familiar with the applicable regulations in this 
chapter and with the inspection methods, techniques, practices, aids, 
equipment, and tools used to determine the airworthiness of the article 
on which maintenance, preventive maintenance, or alterations are being 
performed; and
    (2) Proficient in using the various types of inspection equipment 
and visual inspection aids appropriate for the article being inspected; 
and
    (b) A certificated repair station must ensure its inspectors 
understand, read, and write English.


Sec. 145.157  Personnel authorized to approve an article for return to 
service.

    (a) A certificated repair station located inside the United States 
must ensure each person authorized to approve an article for return to 
service under the repair station certificate and operations 
specifications is certificated under part 65.
    (b) A certificated repair station located outside the United States 
must

[[Page 41121]]

ensure each person authorized to approve an article for return to 
service under the repair station certificate and operations 
specifications is--
    (1) Trained in or has 18 months practical experience with the 
methods, techniques, practices, aids, equipment, and tools used to 
perform the maintenance, preventive maintenance, or alterations; and
    (2) Thoroughly familiar with the applicable regulations in this 
chapter and proficient in the use of the various inspection methods, 
techniques, practices, aids, equipment, and tools appropriate for the 
work being performed and approved for return to service.
    (c) A certificated repair station must ensure each person 
authorized to approve an article for return to service understands, 
reads, and writes English.


Sec. 145.159  Recommendation of a person for certification as a 
repairman.

    A certificated repair station that chooses to use repairmen to meet 
the applicable personnel requirements of this part must certify in a 
format acceptable to the FAA that each person recommended for 
certification as a repairman--
    (a) Is employed by the repair station, and
    (b) Meets the eligibility requirements of Sec. 65.101.


Sec. 145.161  Records of management, supervisory, and inspection 
personnel.

    (a) A certificated repair station must maintain and make available 
in a format acceptable to the FAA the following:
    (1) A roster of management and supervisory personnel that includes 
the names of the repair station officials who are responsible for its 
management and the names of its supervisors who oversee maintenance 
functions.
    (2) A roster with the names of all inspection personnel.
    (3) A roster of personnel authorized to sign a maintenance release 
for approving a maintained or altered article for return to service.
    (4) A summary of the employment of each individual whose name is on 
the personnel rosters required by paragraphs (a)(1) through (a)(3) of 
this section. The summary must contain enough information on each 
individual listed on the roster to show compliance with the experience 
requirements of this part and must include the following:
    (i) Present title,
    (ii) Total years of experience and the type of maintenance work 
performed,
    (iii) Past relevant employment with names of employers and periods 
of employment,
    (iv) Scope of present employment, and
    (v) The type of mechanic or repairman certificate held and the 
ratings on that certificate, if applicable.
    (b) Within 5 business days of the change, the rosters required by 
this section must reflect changes caused by termination, reassignment, 
change in duties or scope of assignment, or addition of personnel.


Sec. 145.163  Training requirements.

    (a) A certificated repair station must have an employee training 
program approved by the FAA that consists of initial and recurrent 
training. For purposes of meeting the requirements of this paragraph, 
beginning April 6, 2005--
    (1) An applicant for a repair station certificate must submit a 
training program for approval by the FAA as required by 
Sec. 145.51(a)(7).
    (2) A repair station certificated before that date must submit its 
training program to the FAA for approval by the last day of the month 
in which its repair station certificate was issued.
    (b) The training program must ensure each employee assigned to 
perform maintenance, preventive maintenance, or alterations, and 
inspection functions is capable of performing the assigned task.
    (c) A certificated repair station must document, in a format 
acceptable to the FAA, the individual employee training required under 
paragraph (a) of this section. These training records must be retained 
for a minimum of 2 years.
    (d) A certificated repair station must submit revisions to its 
training program to its certificate holding district office in 
accordance with the procedures required by Sec. 145.209(e).

Subpart E--Operating Rules


Sec. 145.201  Privileges and limitations of certificate.

    (a) A certificated repair station may--
    (1) Perform maintenance, preventive maintenance, or alterations in 
accordance with part 43 on any article for which it is rated and within 
the limitations in its operations specifications.
    (2) Arrange for another person to perform the maintenance, 
preventive maintenance, or alterations of any article for which the 
certificated repair station is rated. If that person is not 
certificated under part 145, the certificated repair station must 
ensure that the noncertificated person follows a quality control system 
equivalent to the system followed by the certificated repair station.
    (3) Approve for return to service any article for which it is rated 
after it has performed maintenance, preventive maintenance, or an 
alteration in accordance with part 43.
    (b) A certificated repair station may not maintain or alter any 
article for which it is not rated, and may not maintain or alter any 
article for which it is rated if it requires special technical data, 
equipment, or facilities that are not available to it.
    (c) A certificated repair station may not approve for return to 
service'
    (1) Any article unless the maintenance, preventive maintenance, or 
alteration was performed in accordance with the applicable approved 
technical data or data acceptable to the FAA.
    (2) Any article after a major repair or major alteration unless the 
major repair or major alteration was performed in accordance with 
applicable approved technical data; and
    (3) Any experimental aircraft after a major repair or major 
alteration performed under Sec. 43.1(b) unless the major repair or 
major alteration was performed in accordance with methods and 
applicable technical data acceptable to the FAA.


Sec. 145.203  Work performed at another location.

    A certificated repair station may temporarily transport material, 
equipment, and personnel needed to perform maintenance, preventive 
maintenance, alterations, or certain specialized services on an article 
for which it is rated to a place other than the repair station's fixed 
location if the following requirements are met:
    (a) The work is necessary due to a special circumstance, as 
determined by the FAA; or
    (b) It is necessary to perform such work on a recurring basis, and 
the repair station's manual includes the procedures for accomplishing 
maintenance, preventive maintenance, alterations, or specialized 
services at a place other than the repair station's fixed location.


Sec. 145.205  Maintenance, preventive maintenance, and alterations 
performed 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) A certificated repair station that performs maintenance, 
preventive maintenance, or alterations for an air carrier or commercial 
operator that has a continuous airworthiness maintenance program under 
part 121 or part 135 must follow the air carrier's or commercial 
operator's program and

[[Page 41122]]

applicable sections of its maintenance manual.
    (b) A certificated repair station that performs inspections for a 
certificate holder conducting operations under part 125 must follow the 
operator's FAA-approved inspection program.
    (c) A certificated repair station that performs maintenance, 
preventive maintenance, or alterations for a foreign air carrier or 
foreign person operating a U.S.-registered aircraft under part 129 must 
follow the operator's FAA-approved maintenance program.
    (d) Notwithstanding the housing requirement of Sec. 145.103(b), the 
FAA may grant approval for a certificated repair station to perform 
line maintenance for an air carrier certificated under part 121 or part 
135, or a foreign air carrier or foreign person operating a U.S.-
registered aircraft in common carriage under part 129 on any aircraft 
of that air carrier or person, provided--
    (1) The certificated repair station performs such line maintenance 
in accordance with the operator's manual, if applicable, and approved 
maintenance program;
    (2) The certificated repair station has the necessary equipment, 
trained personnel, and technical data to perform such line maintenance; 
and
    (3) The certificated repair station's operations specifications 
include an authorization to perform line maintenance.


Sec. 145.207  Repair station manual.

    (a) A certificated repair station must prepare and follow a repair 
station manual acceptable to the FAA.
    (b) A certificated repair station must maintain a current repair 
station manual.
    (c) A certificated repair station's current repair station manual 
must be accessible for use by repair station personnel required by 
subpart D of this part.
    (d) A certificated repair station must provide to its certificate 
holding district office the current repair station manual in a format 
acceptable to the FAA.
    (e) A certificated repair station must notify its certificate 
holding district office of each revision of its repair station manual 
in accordance with the procedures required by Sec. 145.209(j).


Sec. 145.209  Repair station manual contents.

    A certificated repair station's manual must include the following:
    (a) An organizational chart identifying--
    (1) Each management position with authority to act on behalf of the 
repair station,
    (2) The area of responsibility assigned to each management 
position, and
    (3) The duties, responsibilities, and authority of each management 
position;
    (b) Procedures for maintaining and revising the rosters required by 
Sec. 145.161;
    (c) A description of the certificated repair station's operations, 
including the housing, facilities, equipment, and materials as required 
by subpart C of this part;
    (d) Procedures for--
    (1) Revising the capability list provided for in Sec. 145.215 and 
notifying the certificate holding district office of revisions to the 
list, including how often the certificate holding district office will 
be notified of revisions; and
    (2) The self-evaluation required under Sec. 145.215(c) for revising 
the capability list, including methods and frequency of such 
evaluations, and procedures for reporting the results to the 
appropriate manager for review and action;
    (e) Procedures for revising the training program required by 
Sec. 145.163 and submitting revisions to the certificate holding 
district office for approval;
    (f) Procedures to govern work performed at another location in 
accordance with Sec. 145.203;
    (g) Procedures for maintenance, preventive maintenance, or 
alterations performed under Sec. 145.205;
    (h)Procedures for--
    (1) Maintaining and revising the contract maintenance information 
required by Sec. 145.217(a)(2)(i), including submitting revisions to 
the certificate holding district office for approval; and
    (2) Maintaining and revising the contract maintenance information 
required by Sec. 145.217(a)(2)(ii) and notifying the certificate 
holding district office of revisions to this information, including how 
often the certificate holding district office will be notified of 
revisions;
    (i) A description of the required records and the recordkeeping 
system used to obtain, store, and retrieve the required records;
    (j) Procedures for revising the repair station's manual and 
notifying its certificate holding district office of revisions to the 
manual, including how often the certificate holding district office 
will be notified of revisions; and
    (k) A description of the system used to identify and control 
sections of the repair station manual.


Sec. 145.211  Quality control system.

    (a) A certificated repair station must establish and maintain a 
quality control system acceptable to the FAA that ensures the 
airworthiness of the articles on which the repair station or any of its 
contractors performs maintenance, preventive maintenance, or 
alterations.
    (b) Repair station personnel must follow the quality control system 
when performing maintenance, preventive maintenance, or alterations 
under the repair station certificate and operations specifications.
    (c) A certificated repair station must prepare and keep current a 
quality control manual in a format acceptable to the FAA that includes 
the following:
    (1) A description of the system and procedures used for--
    (i) Inspecting incoming raw materials to ensure acceptable quality;
    (ii) Performing preliminary inspection of all articles that are 
maintained;
    (iii) Inspecting all articles that have been involved in an 
accident for hidden damage before maintenance, preventive maintenance, 
or alteration is performed;
    (iv) Establishing and maintaining proficiency of inspection 
personnel;
    (v) Establishing and maintaining current technical data for 
maintaining articles;
    (vi) Qualifying and surveilling noncertificated persons who perform 
maintenance, prevention maintenance, or alterations for the repair 
station;
    (vii) Performing final inspection and return to service of 
maintained articles;
    (viii) Calibrating measuring and test equipment used in maintaining 
articles, including the intervals at which the equipment will be 
calibrated; and
    (ix) Taking corrective action on deficiencies;
    (2) References, where applicable, to the manufacturer's inspection 
standards for a particular article, including reference to any data 
specified by that manufacturer;
    (3) A sample of the inspection and maintenance forms and 
instructions for completing such forms or a reference to a separate 
forms manual; and
    (4) Procedures for revising the quality control manual required 
under this section and notifying the certificate holding district 
office of the revisions, including how often the certificate holding 
district office will be notified of revisions.
    (d) A certificated repair station must notify its certificate 
holding district office of revisions to its quality control manual.


Sec. 145.213  Inspection of maintenance, preventive maintenance, or 
alterations.

    (a) A certificated repair station must inspect each article upon 
which it has performed maintenance, preventive maintenance, or 
alterations as described in paragraphs (b) and (c) of this section 
before approving that article for return to service.

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    (b) A certificated repair station must certify on an article's 
maintenance release that the article is airworthy with respect to the 
maintenance, preventive maintenance, or alterations performed after--
    (1) The repair station performs work on the article; and
    (2) An inspector inspects the article on which the repair station 
has performed work and determines it to be airworthy with respect to 
the work performed.
    (c) For the purposes of paragraphs (a) and (b) of this section, an 
inspector must meet the requirements of Sec. 145.155.
    (d) Except for individuals employed by a repair station located 
outside the United States, only an employee certificated under part 65 
is authorized to sign off on final inspections and maintenance releases 
for the repair station.


Sec. 145.215  Capability list.

    (a) A certificated repair station with a limited rating may perform 
maintenance, preventive maintenance, or alterations on an article if 
the article is listed on a current capability list acceptable to the 
FAA or on the repair station's operations specifications.
    (b) The capability list must identify each article by make and 
model or other nomenclature designated by the article's manufacturer 
and be available in a format acceptable to the FAA.
    (c) An article may be listed on the capability list only if the 
article is within the scope of the ratings of the repair station's 
certificate, and only after the repair station has performed a self-
evaluation in accordance with the procedures under Sec. 145.209(d)(2). 
The repair station must perform this self-evaluation to determine that 
the repair station has all of the housing, facilities, equipment, 
material, technical data, processes, and trained personnel in place to 
perform the work on the article as required by part 145. The repair 
station must retain on file documentation of the evaluation.
    (d) Upon listing an additional article on its capability list, the 
repair station must provide its certificate holding district office 
with a copy of the revised list in accordance with the procedures 
required in Sec. 145.209(d)(1).


Sec. 145.217  Contract maintenance.

    (a) A certificated repair station may contract a maintenance 
function pertaining to an article to an outside source provided--
    (1) The FAA approves the maintenance function to be contracted to 
the outside source; and
    (2) The repair station maintains and makes available to its 
certificate holding district office, in a format acceptable to the FAA, 
the following information:
    (i) The maintenance functions contracted to each outside facility; 
and
    (ii) The name of each outside facility to whom the repair station 
contracts maintenance functions and the type of certificate and 
ratings, if any, held by each facility.
    (b) A certificated repair station may contract a maintenance 
function pertaining to an article to a noncertificated person 
provided--
    (1) The noncertificated person follows a quality control system 
equivalent to the system followed by the certificated repair station;
    (2) The certificated repair station remains directly in charge of 
the work performed by the noncertificated person; and
    (3) The certificated repair station verifies, by test and/or 
inspection, that the work has been performed satisfactorily by the 
noncertificated person and that the article is airworthy before 
approving it for return to service.
    (c) A certificated repair station may not provide only approval for 
return to service of a complete type-certificated product following 
contract maintenance, preventive maintenance, or alterations.


Sec. 145.219  Recordkeeping.

    (a) A certificated repair station must retain records in English 
that demonstrate compliance with the requirements of part 43. The 
records must be retained in a format acceptable to the FAA.
    (b) A certificated repair station must provide a copy of the 
maintenance release to the owner or operator of the article on which 
the maintenance, preventive maintenance, or alteration was performed.
    (c) A certificated repair station must retain the records required 
by this section for at least 2 years from the date the article was 
approved for return to service.
    (d) A certificated repair station must make all required records 
available for inspection by the FAA and the National Transportation 
Safety Board.


Sec. 145.221  Reports of failures, malfunctions, or defects.

    (a) A certificated repair station must report to the FAA within 96 
hours after it discovers any failure, malfunction, or defect of an 
article. The report must be in a format acceptable to the FAA.
    (b) The report required under paragraph (a) of this section must 
include as much of the following information as is available:
    (1) Aircraft registration number;
    (2) Type, make, and model of the article;
    (3) Date of the discovery of the failure, malfunction, or defect;
    (4) Nature of the failure, malfunction, or defect;
    (5) Time since last overhaul, if applicable;
    (6) Apparent cause of the failure, malfunction, or defect; and
    (7) Other pertinent information that is necessary for more complete 
identification, determination of seriousness, or corrective action.
    (c) The holder of a repair station certificate that is also the 
holder of a part 121, 125, or 135 certificate; type certificate 
(including a supplemental type certificate); parts manufacturer 
approval; or technical standard order authorization, or that is the 
licensee of a type certificate holder, does not need to report a 
failure, malfunction, or defect under this section if the failure, 
malfunction, or defect has been reported under Sec. 21.3, 121.703, 
121.704, 125.409, 125.410, 135.415, or 135.416 of this chapter.
    (d) A certificated repair station may submit a service difficulty 
report (operational or structural) for the following:
    (1) A part 121 certificate holder under Sec. 121.703(g) or 
Sec. 121.704(f), provided the report meets the requirements of 
Secs. 121.703(d) and 121.703(e), or Secs. 121.704(c) and 121.704(d) of 
this chapter, as appropriate.
    (2) A part 125 certificate holder under Sec. 125.409(g) or 
Sec. 125.410(f), provided the report meets the requirements of 
Secs. 125.409(d) and 125.409(e), or Secs. 125.410(c) and 125.410(d) of 
this chapter, as appropriate;
    (3) A part 135 certificate holder under Sec. 135.415(g) or 
Sec. 135.416(f), provided the report meets the requirements of 
Secs. 135.415(d) and 135.415(e), or Sec. 135.416(c) and 135.416(d) of 
the chapter, as appropriate.
    (e) A certificated repair station authorized to report a failure, 
malfunction, or defect under paragraph (d) of this section must not 
report the same failure, malfunction, or defect under paragraph (a) of 
this section. A copy of the report submitted under paragraph (d) of 
this section must be forwarded to the certificate holder.


Sec. 145.223  FAA inspections.

    (a) A certificated repair station must allow the FAA to inspect 
that repair station at any time to determine compliance with this 
chapter.
    (b) A certificated repair station may not contract for the 
performance of a maintenance function on an article with

[[Page 41124]]

a noncertificated person unless it provides in its contract with the 
noncertificated person that the FAA may make an inspection and observe 
the performance of the noncertificated person's work on the article.
    (c) A certificated repair station may not return to service any 
article on which a maintenance function was performed by a 
noncertificated person if the noncertificated person does not permit 
the FAA to make the inspection described in paragraph (b) of this 
section.

    Issued in Washington, DC on July 30, 2001.
Jane F. Garvey,
Administrator.
[FR Doc. 01-19362 Filed 7-30-01; 4:40 pm]
BILLING CODE 4910-13-P