[Federal Register Volume 77, Number 98 (Monday, May 21, 2012)]
[Proposed Rules]
[Pages 30054-30086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11984]



[[Page 30053]]

Vol. 77

Monday,

No. 98

May 21, 2012

Part II





Department of Transportation





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Federal Aviation Administration





14 CFR Parts 43, 91 and 145





Repair Stations; Proposed Rule

  Federal Register / Vol. 77 , No. 98 / Monday, May 21, 2012 / Proposed 
Rules  

[[Page 30054]]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 43, 91 and 145

[Docket No. FAA-2006-26408; Notice No. 12-03]
RIN 2120-AJ61


Repair Stations

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action would amend the regulations for repair stations by 
revising the system of ratings, the repair station certification 
requirements, and the regulations on repair stations providing 
maintenance for air carriers. This action is necessary because many 
portions of the existing repair station regulations do not reflect 
current repair station aircraft maintenance and business practices, or 
advances in aircraft technology. These changes would modernize the 
regulations to keep pace with current industry standards and practices.

DATES: Send your comments on or before August 20, 2012.

ADDRESSES: You may send comments identified by Docket Number FAA-2006-
26408 using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your 
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S. 
Department of Transportation, 1200 New Jersey Avenue SE., Room W12-140, 
West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket 
Operations in Room W12-140 of the West Building Ground Floor at 1200 
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at 202-493-2251.
    Privacy: The FAA will post all comments it receives, without 
change, to http://www.regulations.gov, including any personal 
information the commenter provides. Using the search function of the 
docket Web site, anyone can find and read the electronic form of all 
comments received into any FAA dockets, including the name of the 
individual sending the comment (or signing the comment for an 
association, business, labor union, etc.). DOT's complete Privacy Act 
Statement can be found in the Federal Register published on April 11, 
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov.
    Docket: Background documents or comments received may be read at 
http://www.regulations.gov at any time. Follow the online instructions 
for accessing the docket or go to the Docket Operations in Room W12-140 
of the West Building Ground Floor at 1200 New Jersey Avenue SE., 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning 
this proposed rule contact John Goodwin, FAA, Repair Station Branch 
(AFS-340), 800 Independence Avenue SW., Washington, DC 20591; telephone 
(202) 385-6417; facsimile (202) 385-6474; email [email protected]. 
For legal questions concerning this proposed rule contact Edmund 
Averman, FAA, Office of the Chief Counsel (AGC-210), 800 Independence 
Avenue SW., Washington, DC 20591; telephone (202) 267-3147; facsimile 
(202) 267-5106; email [email protected].

SUPPLEMENTARY INFORMATION: Later in this preamble under the Additional 
Information section, we discuss how you can comment on this proposal 
and how we will handle your comments. Included in this discussion is 
related information about the docket, privacy, and the handling of 
proprietary or confidential business information. We also discuss how 
you can get a copy of related rulemaking documents.

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is 
found in Title 49 of the United States Code. Subtitle I, section 106, 
describes the authority of the FAA Administrator. Subtitle VII, 
Aviation Programs, describes in more detail the scope of the agency's 
authority.
    This rulemaking is promulgated under the authority described in 
title 49, subtitle VII, part A, subpart III, section 44701, General 
requirements, and Section 44707, Examining and rating air agencies. 
Under section 44701, the FAA may prescribe regulations and standards in 
the interest of safety for inspecting, servicing, and overhauling 
aircraft, aircraft engines, propellers, and appliances. It may also 
prescribe equipment and facilities for, and the timing and manner of, 
inspecting, servicing, and overhauling these items. Under section 
44707, the FAA may examine and rate repair stations.
    This regulation is within the scope of section 44701 since it 
establishes new regulations for a repair station to have permanent 
housing for all its facilities, equipment, materials, and personnel. 
This regulation is within the scope of section 44707 since it revises 
the system of ratings for repair stations and specifies those instances 
when the FAA may deny the issuance of a repair station certificate, 
especially when a previously held certificate has been revoked.

I. Background

    In 1989, the FAA held four public meetings to provide a forum for 
the public to comment on possible revisions to the rules governing 
repair stations. After considering the comments and data collected from 
these meetings, the FAA published a notice of proposed rulemaking in 
June 1999 (1999 NPRM).\1\ The 1999 NPRM proposed significant changes to 
part 145 because the existing language was no longer appropriate and 
had become increasingly difficult to administer.
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    \1\ 64 FR 33142; June 21, 1999.
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    In August 2001, the FAA published a final rule with request for 
comments and direct final rule with request for comments; final 
rule.\2\ This final rule revised most of part 145 as proposed in the 
1999 NPRM. However, it did not adopt the proposed revised repair 
station ratings and the quality assurance system due to the volume of 
negative comments received on the FAA's proposed changes to these 
areas.
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    \2\ 66 FR 41088; August 6, 2001.
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    On October 19, 2001, the FAA tasked the Aviation Rulemaking 
Advisory Committee (ARAC) to address ratings and quality assurance for 
repair stations.\3\ ARAC provided its recommendations in May 2002.\4\
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    \3\ 66 FR 53281; October 19, 2001.
    \4\ A copy of the ARAC's recommendations can be found at http://www.faa.gov/regulations_policies/rulemaking/committees/arac/.
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    On December 1, 2006, the FAA published the NPRM titled ``Repair 
Stations'' (2006 NPRM) that addressed ARAC's recommendations.\5\ The 
original comment period was scheduled to close on March 1, 2007. 
However, the FAA received a request from the Aeronautical Repair 
Station Association to extend the comment period. In a notice published 
on February 27, 2007, the FAA granted a 45-day comment period extension 
to April 16, 2007.\6\ The 2006 NPRM proposed the following changes to 
part 145:
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    \5\ 71 FR 70254; December 1, 2006.
    \6\ 72 FR 8641; February 27, 2007.
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     The system of ratings and classes would be revised 
significantly, including the creation of an avionics rating and the end 
of the issuance of

[[Page 30055]]

limited ratings (to be replaced by the issuance of limitations to the 
rating a repair station holds).
     Each repair station would set up and maintain a capability 
list of all articles for which it is rated. The list would identify 
each article by manufacturer and the type, make, model, category, or 
other nomenclature designated by the article's manufacturer. A repair 
station with an avionics or a component rating would also be required 
to organize its lists by category of the article.
     Each repair station would set up a quality system that 
includes an internal evaluation that reviews the complete repair 
station yearly.
     Applicants for a repair station certificate would include 
a letter of compliance as part of their application.
     Each repair station would be required to provide permanent 
housing for its facilities, equipment, materials, and personnel.
     Each repair station would be required to designate a chief 
inspector.
     The FAA would use certification from an authority 
``acceptable to the FAA'' as a basis for issuing a certificate to a 
person located outside the United States.
     The FAA would identify reasons it could use to deny the 
issuance of a repair station certificate.
    The FAA received more than 150 public comment submissions to the 
2006 NPRM. While there was general support for revising the repair 
station rules, several commenters asked the FAA to withdraw the 
proposal. Many other commenters expressed concerns related to the 
proposed ratings system (particularly the proposed avionics rating), 
the capability list, quality system, letter of compliance, chief 
inspector, housing and facilities, and the FAA's denial of a repair 
station certificate.
    On May 7, 2009, the FAA withdrew the 2006 NPRM because it did not 
adequately address the current repair station operating environment, 
which had changed significantly since the recommendations developed in 
2001 by ARAC.\7\ The FAA also noted that the withdrawal would give the 
FAA time to thoroughly review and properly address these substantial 
operating environment changes and the many issues raised by the 
commenters.
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    \7\ 74 FR 21287, May 7, 2009.
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    The withdrawal notice stated that the FAA had started rulemaking to 
update and revise the regulations for repair stations to more fully 
address the significant changes in the repair station business model. 
This NPRM is the result of those efforts.

General Discussion of the Proposal

    There are three major areas that this proposal will address:
     The system of ratings.
     The certification requirements.
     Repair stations providing maintenance for air carriers.
    In addition, there are several other areas in part 145 that this 
NPRM will address. These are discussed in detail in an ``Other 
Changes'' section in the ``Discussion of the Proposed Regulatory 
Requirements'' portion of this preamble.
    In the 2006 NPRM, the FAA proposed to require a formal quality 
system for all repair stations. While the FAA continues to believe that 
all repair stations should have a formal quality system to improve 
safety, the agency did not include such a requirement in this proposal. 
The FAA is in the process of introducing Safety Management Systems 
(SMS) rules, and it is anticipated that a future SMS rule will cover 
those repair stations operating under part 145. If the agency includes 
a quality system requirement in the final rule resulting from this 
proposal, a possibility exists that such systems would have to be 
modified once an SMS rule is formalized. The FAA does not believe this 
would be an efficient use of repair station resources based on the 
unknown differences that may arise.

Total Benefits and Costs of This Rule

    The total costs of this proposal would be relatively small ($14.493 
million over a 10-year period, spread amongst approximately 5,000 
repair stations), but it is difficult to quantify the benefits. We 
believe, however, that the potential benefits, which derive in part 
from (1) Giving the FAA authority to (a) deny a repair station 
certificate to an applicant whose past performance resulted in a 
revocation, and (b) revoke all FAA-issued certificates of any person 
who makes fraudulent or intentionally false entries or records; (2) 
defining what operations specifications consist of and providing a 
well-defined process for both industry and the FAA to amend them; and 
(3) updating the ratings system, justify the costs of the proposed 
rule.
    The current rule provides that, with certain unrelated 
restrictions, an applicant who meets the requirements of the rule is 
entitled to a repair station certificate regardless of a past 
regulatory non-compliance history. Because of at least one incident 
where the FAA revoked a repair station certificate for serious 
maintenance-related safety violations, and a key management official 
from that repair station shortly thereafter obtained a new repair 
station certificate under which improper maintenance resulted in a 
fatal accident, the National Transportation Safety Board (NTSB) 
recommended that a certificate applicant's past performance should be a 
consideration in determining whether a new certificate should be 
issued. That criteria currently applies to air carrier certificate 
applicants. The FAA agrees with the NTSB, and is proposing rules 
similar to those for air carriers in the hopes of preventing accidents 
like the one just described.
    Although the current rule provides that no person may operate 
without, or in violation of, FAA-issued operations specifications, it 
does not define the term or explain what they consist of. Much 
confusion prevails within the repair station community and the FAA 
whether any or all of a repair station's operations specifications are 
considered part of its certificate and therefore entitled to NTSB 
review of any FAA-mandated changes to them. This proposed rule would 
make clear what operations specifications are and which ones are part 
of a repair station's certificate. It would also provide detailed 
processes for both FAA-initiated and repair station-initiated 
amendments to them. This would benefit both the repair station 
community and the FAA by providing a degree of certainty where 
currently there is only confusion.
    In addition, the current ratings system dates to the 1930's and 
1940's, and does not adequately address the way current aircraft are 
constructed. This hampers the FAA's ability to appropriately and 
consistently issue ratings, and it impedes repair stations' ability to 
accurately describe the work they perform. The repair station community 
and the FAA have struggled, and continue to struggle, with the 
application of current technology and business practices to an 
antiquated rule. The proposed rule would accommodate current advanced 
technologies and provide regulatory flexibility to accommodate future 
technological development.

1. System of Ratings

    Part 145's system of ratings does not address current technology or 
industry practices. It is not dynamic and cannot adapt as new 
technologies are introduced. It is also not defined clearly and is open 
to inconsistent interpretation and application. These failings have 
resulted in repair stations having a variety of ratings to perform the 
same work. This system is confusing

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to repair station operators and their customers, and presents 
increasingly difficult certificate management challenges to the FAA.
    The rating changes proposed in the 2006 NPRM generated many 
comments. Most of those commenters were concerned that the proposed 
system of ratings would require a repair station to get FAA approval 
before changing or adding to the proposed required capability list. 
This proposal would not require a capability list, but would revise the 
capability list recording requirements for those repair stations who 
choose to use one. This is a potentially marked change for repair 
stations with class ratings that do not currently have a capability 
list of the items they maintain.
    Under this proposal, the system of ratings would be reduced from 
eight ratings to five ratings. The ratings definitions would be revised 
to clearly indicate the type of work that a repair station is 
authorized to perform. A comparison of the proposed ratings with the 
current ratings follows:

------------------------------------------------------------------------
                  Current                             Proposed
------------------------------------------------------------------------
Airframe Class:                             Airframe Category:
    1. Composite Small.                        1. Aircraft certificated
                                                under part 23 or 27.
    2. Composite Large.                        2. Aircraft certificated
                                                under part 25 or 29.
    3. All-Metal Small.                        3. All other aircraft.
    4. All-Metal Large.
------------------------------------------------------------------------
Powerplant Class:                           Powerplant Category:
    1. Reciprocating Engines of 400 HP or      1. Reciprocating engines.
     less.
    2. Reciprocating Engines of more than      2. Turbine engines.
     400 HP.
    3. Turbine Engines.                        3. Auxiliary Power Units.
                                               4. All other powerplants.
------------------------------------------------------------------------
Propeller Class:                             Propeller Category:
    1. All Fixed and Ground-Adjustable.        1. Fixed-pitch and ground-
                                                adjustable propellers.
    2. All other propellers.                   2. Variable-pitch
                                                propellers.
                                               3. All other propellers.
------------------------------------------------------------------------
Radio Class:                                Component.
    1. Communication.
    2. Navigation.
    3. Radar.
------------------------------------------------------------------------
Instrument Class:                           Component.
    1. Mechanical.
    2. Electrical.
    3. Gyroscopic.                          ............................
    4. Electronic.                          ............................
------------------------------------------------------------------------
Accessory Class:                            Component.
    1. Mechanical.                          ............................
    2. Electrical.                          ............................
    3. Electronic.                          ............................
------------------------------------------------------------------------
Limited Rating Specialized Service.         Specialized Service.
------------------------------------------------------------------------
Limited Ratings (Sec.   145.61(b) lists 12  Eliminated.
 possible limited ratings).
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2. Certification Requirements

    The 2006 NPRM proposed that the FAA could deny an application for a 
repair station certificate if the applicant previously held a repair 
station certificate that had been revoked or if the applicant or 
certain key individuals who would exercise control over the new repair 
station had materially contributed to the circumstances that resulted 
in a prior repair station certificate revocation action. This proposal 
was similar to the authority contained in part 119 authorizing the FAA 
to deny applications for air carrier and commercial operator 
certificates. The commenters who opposed this proposal stated it was 
too open-ended and that it would be impossible to maintain a tracking 
list of disqualifying individuals.
    While the FAA understands the commenters' concerns, the agency 
believes this requirement should be implemented. The FAA will add a 
question to the repair station application asking whether the applicant 
has a repair station certificate currently being revoked, or previously 
held a repair station certificate that was revoked as described in 
Sec.  145.1051(e). The FAA notes that denial is not automatic. If the 
agency were to deny a certificate to an applicant under the proposed 
rule, the affected person could appeal that denial under the procedures 
provided in 14 CFR part 13.
    The FAA is also proposing to clarify the certification requirements 
in Sec.  145.51(b) on the equipment, personnel, technical data, and 
housing and facilities that must be in place for inspection at the time 
of certification or rating approval by the FAA. There has been much 
confusion about how a repair station can meet these requirements by 
contract. The FAA is proposing language to clarify that the contract 
applies only to ownership, and not to the demonstration phase of 
certification. If a repair station does not permanently possess these 
items, it must be able to demonstrate to the FAA that it has made 
arrangements with another person to provide such items whenever they 
are needed to perform work, and it must display these items and all 
associated lease agreements during certification.

[[Page 30057]]

3. Repair Stations Providing Maintenance for Air Carriers

    In response to the 2006 NPRM, several repair stations that provide 
maintenance for air carriers raised concerns on the information that 
air carriers must provide. Currently, Sec.  145.205 states a repair 
station working for an air carrier must follow the carrier's ``program 
and applicable sections of its maintenance manual.'' Repair stations 
that provide such work stated that the term ``applicable sections'' 
causes confusion because it is subjective and vague. They point out 
that air carriers, air operators, and even the FAA's own inspectors 
interpret this term differently.
    In this NPRM, the FAA proposes language to clarify that when a 
repair station performs work as a maintenance provider to an air 
carrier, the repair station must perform that work in accordance with 
the maintenance instructions provided by the air carrier or air 
operator.
    Line maintenance will be authorized as a limitation to an airframe 
rating. The regulations regarding line maintenance authorization will 
be deleted.

II. Discussion of the Proposed Regulatory Requirements

1. Transition

    The FAA recognizes that the proposals in this NPRM represent a 
major revision to part 145. There would be many new and enhanced 
requirements as well as an in-depth change to the ratings system. These 
changes would require the revision of several existing repair station 
documents. These document changes would have to be reviewed and 
accepted by the FAA. This could then lead to delays in granting repair 
stations the approvals they need to operate.
    To provide for the transition of current repair stations and at the 
same time accommodate the continued receipt of new applications, the 
FAA is proposing to retain the current regulations appended with the 
proposed regulations for 24 months. The current language would be 
retained with its current subpart lettering, A through E, and be 
revised only where necessary to accommodate the transition. The new 
rule would be located in new subparts, lettered F through J. Thus, the 
current Subpart B Certification Sec.  145.51, Application for 
Certificate, would co-exist with a Subpart G Certification Sec.  
145.1051, Application for Certificate, during the 24-month transition 
period. The FAA anticipates that the final rule, if adopted, would 
become effective 60 days after publication.
    Repair stations certificated before the effective date of the final 
rule would be able to continue to operate under the current 
regulations. They would have 24 months after the effective date of the 
final rule to show compliance with the proposed regulations by 
developing associated documents and submitting an FAA Form 8310-3, 
Application for Repair Station Certificate and/or Rating.
    New applicants would be required to comply with subparts F through 
J upon the effective date of the final rule. Any repair station 
applying for a change to its repair station certificate requiring a new 
application, as provided for in the current rule, would be required to 
comply with subparts F through J as a condition of approval of the 
certificate change.
    All repair stations certificated before the effective date of the 
final rule would have to timely apply for certification under the 
proposed rules if they intend to continue to operate without 
interruption. Repair stations are cautioned that waiting until later in 
the 24-month transition period may increase the risk that unforeseen 
circumstances might result in the repair station not having an active 
certificate until such time as the FAA can review the submitted 
documents and provide the repair station with a new repair station 
certificate.
    All certificated repair stations would have to be in compliance 
with the provisions of subparts F through J no later than 24 months 
after the effective date of the rule. At that time, current subparts A 
through E would be removed and reserved. The rules would continue to 
carry the 1xxx (one thousand series) numbers to be consistent with any 
guidance or other documentation that is issued during the 24-month 
transition period.
    To address the transition in the current regulations, the FAA 
proposes to revise subparts A through C as follows:
     Section 145.1(a) would state that subparts A through E 
will expire and be reserved 24 months after the effective date of the 
final rule.
     Section 145.1(b) would be changed to direct that subparts 
A through E apply to repair stations certificated before the effective 
date of the final rule until they are certificated under new subparts F 
through J or 24 months from the effective date of the rule.
     Section 145.1(c) would be revised to direct that a repair 
station certificated before the effective date of the rule would have 
to follow subparts A through E until it complies with subparts F 
through J.
     Section 145.51(a) would be changed to direct applications 
to be made in accordance with new Sec.  145.1051.
     Section 145.53(a) would be revised to reflect that a 
certificate issued under subparts A through E would be valid for no 
longer than 24 months after the effective date of the final rule.
     Section 145.55(a) would be revised to state that a 
certificate issued to a repair station located outside the United 
States would not be valid 24 months after the effective date of the 
final rule.
     Section 145.55(b) would be revised to state that a 
certificate issued to a repair station located outside the United 
States may be renewed but not beyond 24 months from the effective date 
of the final rule.
     In Sec.  145.55(c)(1), the reference to Sec.  145.51 for 
the application procedures would be changed to Sec.  145.1051.
     In Sec.  145.57, the reference to Sec.  145.51 for the 
procedures to be followed by a new owner would be changed to Sec.  
145.1051.
     In Sec.  145.105(b), the reference to Sec.  145.103 for 
change in housing would be changed to Sec.  145.1103.

2. System of Ratings

    The FAA proposes to revise the ratings and classes that may be 
issued to certificated repair stations. Under this proposal, the system 
of ratings would be reduced from eight ratings to five ratings. The 
ratings definitions would be revised to clearly indicate the type of 
work that a repair station is authorized to perform under each rating.
a. Airframe Rating (Current Sec.  145.59(a)/Proposed Sec.  145.1059(a))
    Currently, the FAA may issue a repair station an Airframe rating 
with any of four class ratings: Classes 1, 2, 3, and 4. These classes 
are based on aircraft weight (large or small (as defined in 14 CFR 
1.1)) and construction (composite or all-metal).
    The use of construction as a basis for determining the class rating 
system no longer reflects the technology used in building today's 
aircraft. For example, at the time the Airframe rating was created, the 
aviation industry commonly referred to aircraft made from a combination 
of wood, fabric, and metal materials as aircraft with a ``composite'' 
construction. Today, the term ``composite'' construction refers to the 
use of carbon-carbon compounds and advanced polymers (which is fast 
becoming the standard in the industry). These types of materials were 
not even envisioned when the Airframe rating was created.
    In addition, airframe manufacturers often use a mix of materials in 
current

[[Page 30058]]

aircraft construction. An all-composite or all-metal construction of an 
airframe is no longer the standard design. For example, an airframe 
could be metal while certain portions, such as control surfaces and 
fairings, are composite materials.
    The continued use of weight as a basis for determining the class 
rating is also problematic. Historically, the FAA and the aviation 
industry used the weight classification of small and large aircraft to 
distinguish aircraft used in commercial air carrier service from those 
used in general aviation. Commercial operators typically used aircraft 
weighing over 12,500 pounds, while general aviation operators typically 
used smaller aircraft. This distinction also reflected the relative 
complexity of the aircraft. Today, however, aircraft weight reflects 
neither the complexity nor the intended use of an aircraft.
    Therefore, it is clear that the Airframe rating needs to be 
updated. The FAA initially considered trying to define the term 
``composite.'' This was difficult, at best. More importantly, any 
definition developed today may soon become outdated by further 
technological advances. The FAA has determined that a better approach 
is to have the underlying certification rules dictate the appropriate 
rating.
    The FAA proposes to remove classes from the Airframe rating and 
group the aircraft that were previously covered by these classes in 
accordance with their certification standards under parts 23, 25, 27, 
and 29. All other aircraft not certificated under these parts would be 
in a separate category ``all other aircraft.''
    The FAA believes that grouping the Airframe rating into categories 
according to the airworthiness certification standards would better 
define the technology of the aircraft and relieve confusion. The 
proposed structure of the Airframe rating is:
     Category 1: All aircraft certificated under parts 23 and 
27.
     Category 2: All aircraft certificated under parts 25 and 
29.
     Category 3: All other aircraft.
    The purpose of grouping airframes into categories 1 and 2 is to 
include aircraft that were originally certificated under their 
respective airworthiness standards. The third category would capture 
aircraft that were originally certificated under Civil Aeronautical 
Rules (CARs), Civil Aeronautical Bulletins (CABs) and/or Special 
Aeronautical Information Bulletins (SAIBs). This system of airframe 
rating categories would also capture future aircraft designs.
    Category 3 would capture aircraft that are not included in 
categories 1 and 2. This would include aircraft such as unmanned 
aircraft systems, light sport aircraft, and manned balloons. This would 
also provide a category for other aircraft currently under design 
status and not yet certified under established certification 
regulations.
    An application for the proposed Airframe rating would have to 
include a list of the make, model, or series of all aircraft that the 
repair station intends to maintain. This is a marked change for current 
airframe class rated repair stations.
    The FAA also proposes to use the term ``category'' as a replacement 
for the term ``class.'' The term ``class'' has been used for so many 
years to mean a particular group of aircraft in part 145 that it seems 
impractical to try to apply it in a different context.
b. Powerplant Rating (Current Sec.  145.59(b)/Proposed Sec.  
145.1059(b))
    The current Powerplant rating has three classes: Class 1--
Reciprocating engines of 400 horsepower or less, Class 2--Reciprocating 
engines of more than 400 horsepower, and Class 3--Turbine engines.
    When the FAA established the current Powerplant rating, 
reciprocating radial engines that produced more than 400 horsepower 
powered nearly all large aircraft. These engines differed substantially 
from the horizontally-opposed reciprocating engines with less than 400 
horsepower that manufacturers used to power general aviation aircraft. 
In 1941 (which was when the repair station ratings were originally 
developed), horsepower evaluations were the most common of the methods 
available to determine the complexity of engines.
    Today, this methodology is antiquated and adds no value to the 
Powerplant rating. It is possible for small horizontally-opposed 
reciprocating engines to produce more than 400 horsepower. Further, 
most modern transport category aircraft now have turbine engines, while 
manufacturers no longer produce high horsepower radial engines. This is 
the exact opposite of what was in place when the FAA established the 
current Powerplant rating (i.e., manufacturers were just beginning to 
use turbine engines on civil aircraft). Therefore, separate classes for 
reciprocating engines are no longer useful.
    Under the proposed Powerplant rating, the FAA intends to establish 
four categories:
     Category 1: Reciprocating engine.
     Category 2: Turbine engine.
     Category 3: Auxiliary Power Units (APU).
     Category 4: All other powerplants.
    Reciprocating engines would be grouped into one category regardless 
of the horsepower generated. Turbine engines would continue to be 
grouped into one category. Since reciprocating and turbine engines do 
not cross technological boundaries, the FAA believes the two categories 
sufficiently capture the types of engine work that a repair station may 
perform.
    A new category for APUs is proposed because they have evolved into 
a specialized technology in the powerplant arena. An APU refers to any 
gas turbine-powered unit delivering rotating shaft power or compressed 
air, or both, that is not intended for propelling aircraft. APUs often 
drive aircraft generators and air-conditioning packs. APUs also can be 
used as an extra source of energy to start the primary aircraft 
engines. The design configurations of some aircraft rely on an APU for 
provisional back-up electrical power in flight if the primary power 
sources fail.
    The fourth category, All other powerplants, would be created to 
allow growth within the Powerplant rating for any other powerplant 
units not commonly used in aircraft today, such as solely electric 
engines.
    Under the proposed rating system, a repair station holding a new 
Powerplant rating could perform maintenance, preventive maintenance, 
and alterations of the powerplant and associated articles that are 
necessary for the powerplant to operate properly.
    An application for the proposed Powerplant rating would have to 
include a list of the make, model, or series of all aircraft engines 
and APUs that the repair station intends to maintain. This is a marked 
change for current powerplant class rated repair stations.
    As was the case with the proposed Airframe rating, the FAA is 
proposing to use the term ``category'' as a replacement for the term 
``class.''
c. Propeller Rating (Current Sec.  145.59(c)/Proposed Sec.  
145.1059(c))
    Under the current regulations, the Propeller rating has two 
classes. Class 1 covers fixed-pitch and ground-adjustable propellers of 
wood, metal, or composite construction. All other propellers, by make, 
fall under Class 2.
    This distinction is based on the different levels of complexity 
between a propeller with no moving parts and a propeller with a 
mechanical system that controls the pitch of the propeller while 
operating. Aircraft with small

[[Page 30059]]

reciprocating engines generally have fixed-pitch propellers, while 
aircraft with high horsepower engines have variable-pitch propellers. 
Although varying levels of complexity exist for propellers, most repair 
stations performing maintenance on propellers hold both class ratings.
    As was the case with the current Airframe rating, the use of a 
propeller's composition as a basis to classify propellers has lost its 
usefulness.
    The proposed Propeller rating would be structured to categorize 
propellers by complexity of designs and would no longer refer to the 
composition of a propeller as a method of categorization. The proposed 
structure of the Propeller rating is:
     Category 1: Fixed-pitch and ground-adjustable propellers.
     Category 2: Variable-pitch propellers.
     Category 3: All other propellers.
    The proposed Propeller rating would permit a repair station to 
perform maintenance, preventive maintenance, and alterations on 
propellers and their respective individual component parts that are 
necessary for the propellers to operate. Examples of these propeller 
component parts would be propeller blade pitch controls, governors, 
pitch change assemblies, pitch locks, mechanical stops, and feathering 
system components. The proposed Propeller rating does not include main 
and auxiliary rotors (Airframe rating required) or rotating airfoils of 
aircraft engines (Powerplant rating required).
    An application for the proposed Propeller rating would have to 
include a list of the make, model, or series of all propellers that the 
repair station intends to maintain.
    As was the case with the proposed Airframe and Powerplant ratings, 
the FAA is proposing to use the term ``category'' as a replacement for 
the term ``class.''
d. Component Rating (Proposed Sec.  145.1059(d))
    The current Radio rating (Sec.  145.59(d)) consists of three 
classes: Class 1--Communication equipment, Class 2--Navigation 
equipment, and Class 3--Radar equipment. In its report, ARAC indicated 
that technological advances in avionics have led to much controversy 
over this categorization of equipment. ARAC noted that modern avionics 
equipment typically integrates communication and navigation functions 
into a single avionics appliance. Radar and radio equipment that 
operate using pulse technology also serve communication and navigation 
functions. As such, repair stations performing work on avionics 
equipment often hold a Radio rating with all three of the classes.
    The current Instrument rating (Sec.  145.59(e)) consists of four 
classes: Class 1--Mechanical, Class 2--Electrical, Class 3--Gyroscopic, 
and Class 4--Electronic. These classes were established based on the 
technology available at the time. However, most instruments currently 
operate using a combination of these technologies. These class 
distinctions are no longer appropriate.
    The current Accessory rating (current Sec.  145.59(f)) has three 
classes. Class 1 is mechanical accessories that depend on friction, 
hydraulics, mechanical linkage, or pneumatic pressure for operation. 
Class 2 is electrical accessories that depend on electrical energy for 
their operation and generators. Class 3 is electronic accessories that 
depend on the use of an electron tube, transistor, or similar device. 
Similar to the Instrument rating, the classes for the Accessory rating 
identify the article's principle of operation. Many articles maintained 
under this rating use a combination of principles, thus requiring 
repair stations to hold all the class ratings for an Accessory rating.
    The classes defined in Sec. Sec.  145.59(d), (e), and (f) are 
essentially the same as when they were implemented in 1941. The 
technological advances in radios, instruments, and accessories have 
often combined many of the functions and modernized the construction of 
the articles detailed in these classes. Under oo current rule, repair 
stations may not be able to categorize properly the articles on which 
they desire to perform maintenance. Therefore, repair stations may be 
required to possess tools and equipment that are either antiquated or 
not available.
    The FAA is proposing a new Component rating to replace the Radio, 
Instrument, and Accessory ratings. The proposed Component rating would 
allow repair stations to perform maintenance, preventive maintenance, 
and alterations on various components and related articles that are not 
installed on an airframe, powerplant, or propeller. The various 
components and articles that are currently included in a Radio, 
Instrument, or Accessory class rating would be absorbed into the 
Component rating. A repair station with a Component rating would be 
required to have an Airframe, Powerplant, or Propeller rating with 
limitations to install components or appliances. The FAA believes that 
the comments generated in previous rulemaking attempts are being 
addressed by this proposed rating. The Component rating would open 
opportunities for repair stations to have numerous components listed on 
their operations specifications, thus generating more work and revenue.
    An application for the proposed Component rating would have to 
include a list of the components that the repair station intends to 
maintain.
e. Specialized Service Rating (Proposed Sec.  145.1059(e))
    The FAA is proposing a new rating, called Specialized Service, to 
address what is currently listed as specialized services functions of a 
limited rating. This rating would be different from the other ratings 
in that it focuses on the maintenance being performed rather than the 
article being maintained. A repair station with a Specialized Service 
rating could perform a specialized maintenance function that might 
apply across multiple other ratings.
    The proposed Specialized Service rating is substantially the same 
as the existing limited rating for specialized services in Sec.  
145.61. The Specialized Service rating would allow a repair station to 
perform a specific and unique function associated with the maintenance, 
preventive maintenance, or alteration of an article. The repair 
station's operations specifications would list the Specialized Service 
rating and the specification used in performing that specialized 
service. The specification could be a military, industry, or applicant-
developed specification that was approved by the FAA. Examples of 
specialized services would include, but not be limited to, non-
destructive testing or inspection, welding, heat-treating, plating, and 
plasma spraying.
    If specialized service functions are contained within a repair 
station's existing ratings, the repair station would not require an 
additional rating to perform that service. For example, if an Airframe 
rated repair station has the in-house capability to perform x-ray 
inspections in accordance with the airframe Instructions for Continued 
Airworthiness, it would not need to have a Specialized Service rating 
to perform that function on an airframe for which it is already rated.
    As is the case with the current limited specialized service rating, 
this rating could enhance the capabilities of some repair stations that 
are limited by the article-based rating they possess. This individual 
rating would allow a repair station to perform the maintenance function 
outside of its article-based rating--to specialize in a particular 
maintenance function without being required to hold an Airframe,

[[Page 30060]]

Powerplant, Propeller, or Component rating to perform the service.
    An application for the proposed Specialized Service rating would 
have to include a list of the services, with associated specifications, 
that the repair station intends to provide.
f. Limitations to Ratings (Current Sec.  145.61/Proposed Sec.  
145.1061)
    Section 145.61 provides for limited ratings based on a repair 
station performing maintenance, preventive maintenance, or alterations 
on a particular make or model of aircraft, powerplant, propeller, 
radio, instrument, accessory, or part thereof, and for performing 
specialized maintenance.
    The FAA is proposing that limited ratings no longer be issued. 
Proposed Sec.  145.1061 would more accurately detail the FAA's current 
practice of issuing limitations to the rating of a certificated repair 
station. For example, if a repair station intends to perform only 
interior configuration work or aircraft painting, the FAA would issue 
the repair station a limitation to its Airframe rating and list that 
limitation on the repair station's operations specifications. The 
repair station's operations specifications would specify the rating to 
which the limitation applies in sufficient detail to describe the 
maintenance capabilities of the repair station.
    The FAA believes that the ability to place limitations when 
necessary on a repair station's rating is essential to accurately 
reflect the repair station's capabilities. Currently, a repair 
station's operations specifications contain provisions for this 
purpose. This proposed change would add regulatory language to control 
what has historically been an essential part of the rating system.

3. Certification Requirements

    Several areas within subpart B (Certification) of part 145 have, 
over time, caused confusion in the industry and within the FAA. Changes 
within this subpart are needed to clarify existing regulatory language 
and, in some cases, create regulatory language where essential 
practices have long been imposed through FAA guidance. Changes are also 
needed in this subpart to align language with other proposed section 
changes contained in this NPRM. In addition, this NPRM contains a 
proposal to allow for certification denial when certain enforcement 
history exists.
a. Application for Certificate--Items Required (Current Sec.  
145.51(a)/Proposed Sec.  145.1051(a))
    Current Sec.  145.51(a) details, and Sec.  145.1051(a) proposes to 
detail, those items that must be included in an application for a 
repair station certificate and rating.
    The FAA proposes to add a provision that would require an initial 
applicant for a repair station certificate to provide the FAA with a 
letter outlining how the applicant will comply with each section of 
part 145 (see proposed Sec.  145.1051(a)). The FAA refers to this as a 
``letter of compliance.'' Under longstanding FAA policy and practice, 
applicants have provided this letter in the past. Since this letter has 
long been an essential part of the application process, the FAA 
believes it appropriate to propose a regulatory basis for it. Also, 
because applicants have been providing these letters by policy, the FAA 
believes no additional cost would be incurred.
    Current Sec.  145.51(a)(1) requires that an application for a 
repair station certificate include a repair station manual acceptable 
to the FAA as required by current Sec.  145.207, and Sec.  145.51(a)(2) 
requires that the application include a quality control manual 
acceptable to the FAA as required by current Sec.  145.211(c). These 
requirements are found in proposed Sec. Sec.  145.1051(a)(2) and 
(a)(3), respectively. The FAA is also proposing in Sec.  145.1051(a)(3) 
that the repair station manual and the quality control manual may be 
contained in the same document if they are clearly identified.
    Currently, an applicant is required to provide a list by type, 
make, or model of each article for which the application is made (Sec.  
145.51(a)(3)). This requirement is not explicitly linked to the rating 
system found in Sec.  145.59. The FAA proposes to revise this 
requirement (in proposed Sec.  145.1051(a)(4)) to specifically 
reference the rating system (as found in proposed Sec.  145.1059). This 
would help the applicant better understand the certification 
requirements and align the information provided at the time of 
application with the actual ratings allowed through the regulation. The 
FAA does not anticipate that this change would burden current repair 
stations, and it would ensure that applicants submit the necessary 
information without adding new requirements.
    As repair stations have become larger and more complex, it is 
apparent that identification of the principal repair station location 
has often become difficult to ascertain for the public as well as for 
the FAA. This has made it difficult for the FAA to fulfill its 
obligation to provide appropriate oversight. Current Sec.  145.51(a)(5) 
requires an applicant to provide a description of its housing and 
facilities, in accordance with Sec.  145.103. The FAA is proposing 
clarifying language in Sec.  145.1051(a)(6) that would require the 
applicant to identify all facilities that will make up the repair 
station at the time of application.
    The FAA is not proposing changes to the requirements in current 
Sec. Sec.  145.51(a)(4), (6) and (7). However, in proposed subpart G, 
these requirements would be found in proposed as Sec. Sec.  
145.1051(a)(5), (7) and (8) respectively.
b. Application for Certificate--Appropriate Equipment (Current Sec.  
145.51(b)/Proposed Sec.  145.1051(b))
    Current Sec.  145.51(b) requires that 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. 
This section also states that an applicant may meet the equipment 
requirement if it 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 it is necessary when the relevant work is 
being performed by the repair station.
    This provision was included for the first time in the 2001 final 
rule in response to comments received on the 1999 NPRM. The commenters 
expressed concerns that the requirement to have all the equipment in 
place at the time of certification would be unnecessarily burdensome. 
Others noted that it is important only that the equipment be in place 
when it is needed to perform the work. Similarly, commenters opposed 
the requirement in then proposed Sec.  145.111 (Equipment and material 
requirements) that would have required repair stations to have, located 
on the premises and under their full control, the equipment and 
material necessary to perform the maintenance appropriate to their 
ratings. They said the requirement would preclude repair stations from 
renting or leasing equipment. The commenters also noted that a renting 
or leasing option would be particularly important for expensive, rarely 
used tools.
    In response to those comments, the FAA revised the text in Sec.  
145.51(b) to permit an applicant for a repair station certificate to 
meet the equipment requirement by having a contract acceptable to the 
FAA that would ensure the equipment would be

[[Page 30061]]

available when the relevant work is performed. Agreeing with the 
commenters' concerns over the burden of having to purchase expensive, 
rarely used tools to have in place during initial certification, the 
FAA stated that its new contract provision ``will accommodate those 
repair stations that do not plan to purchase expensive equipment that 
may not be used regularly'' (66 FR 41095, August 6, 2001). The preamble 
discussion, however, noted that the provision did not relieve an 
applicant from having the equipment in place and available for 
inspection at the time of certification. While recognizing that, under 
this provision, an applicant need not physically retain the equipment 
after certification, the FAA found it necessary that each applicant 
have the equipment in place during the certification process. During 
the certification inspection, the FAA could ``observe the placement of 
the equipment, whether the equipment works, and whether the applicant 
can use the equipment properly.'' Id.
    Similarly, in response to the comments on proposed Sec.  145.111, 
the FAA revised the text (now found in Sec.  145.109) to provide that: 
``The equipment, tools, and material must be located on the premises 
and under the repair station's control when the work is being done.'' 
This change also accommodated the commenters' concerns about not having 
to purchase expensive, seldom used equipment to have permanently in 
place when they could instead obtain it through contract when needed.
    These issues were discussed in the 2006 NPRM, when the FAA 
addressed and attempted to clarify what it termed was an ambiguity in 
the existing text. The preamble stated that this ``ambiguity results 
from the phrase specifying that the equipment requirement could be met 
`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' '' (71 FR 70256, Dec. 1, 2006 (emphasis in original)).
    The FAA noted the possibility of inconsistent application of this 
provision by different FAA inspectors. For example, one inspector might 
require all of the equipment to be placed on site for initial 
inspection, and another might only review the contract. Noting that the 
safety basis for the equipment requirement is that the equipment be in 
place when the work is being performed, the FAA proposed revised text 
in the 2006 NPRM to clarify that the requirement for initial 
certification could be met by a contract to make the equipment, tools, 
and test apparatus available to the repair station at any time it is 
necessary when the relevant work is being performed.
    The FAA has reconsidered this issue and has determined that the 
``clarification'' proposed in the 2006 NPRM was not entirely consistent 
with the underlying purpose of the provision published in the 2001 
final rule. As noted above, the 2001 preamble supported the change to 
allow contracting for equipment availability by noting that it would 
``accommodate those repair stations that do not plan to purchase 
expensive equipment that may not be used regularly.'' The preamble also 
made clear that the new provision did not relieve an applicant from 
having the equipment in place and available for inspection at the time 
of certification. Thus, the clarification offered in the 2006 NPRM was 
not in full accord with the agency's intent set forth in the 2001 
preamble, which would have required applicants to have basic equipment 
in place for inspection.
    The FAA believes it should not grant a repair station certificate 
to an applicant with a virtually empty building based merely on a 
showing it can get the required equipment by contract when needed. 
Therefore, the FAA proposes to change the rule to remove any ambiguity 
by requiring the repair station to meet the equipment requirements of 
proposed Sec.  145.1051 by having the equipment available for 
inspection at certification. The repair station would not need to own 
the equipment but would be required to present the equipment during 
certification and have it available thereafter.
    The FAA also proposes to clarify the scope of the kinds of items a 
repair station must have for initially obtaining certification by 
adding both tools and test apparatus to the list of items a repair 
station must have on site. While the term ``equipment'' could be 
interpreted to include many examples of each, adding the term ``tools'' 
to the regulation would ensure that an applicant for a repair station 
certificate also have on site certain tools necessary for the rating 
sought that individual mechanics or repairmen might not possess. This 
might include tools that are of a specialized nature for the rating or 
other tools that might be too large or expensive, or of a limited 
specialized nature. For the same reasons, and for consistency with the 
requirements of Sec.  43.13(a), the FAA proposes to add ``test 
apparatus'' to the list of items a repair station must have in place 
for inspection at the time of initial certification or rating approval.
c. Application for Certificate--Repair Stations Outside the United 
States (Current Sec.  145.51(c)/Proposed Sec.  145.1051(c))
    Current Sec.  145.51(c) requires an applicant for a certificate for 
a repair station located outside the United States to show the 
certificate and/or rating is necessary for maintaining or altering 
certain aircraft and articles. The result of this language 
unintentionally requires the repair station applicant to maintain both 
aircraft and articles. The FAA proposes to change the word ``and'' to 
the less restrictive ``or'' in proposed Sec.  145.1051(c).
d. Application for Certificate--Denial (Proposed Sec.  145.1051(e))
    The 2006 NPRM proposed that the FAA could deny an application for a 
repair station certificate if the applicant previously held a repair 
station certificate that had been revoked or if the applicant or 
certain key individuals who would exercise control over the new repair 
station had materially contributed to the circumstances that resulted 
in a prior repair station certificate revocation action. This is 
similar to the current authority contained in part 119 authorizing the 
FAA to deny applications for air carrier and commercial operator 
certificates. The commenters who opposed this proposal stated it was 
too open-ended and that it would be impossible to maintain a tracking 
list of disqualifying individuals.
    At the present time, the FAA is not planning to maintain a tracking 
list of individuals who might be disqualified under this section. The 
agency is, however, planning to add a question to the repair station 
application inquiring into the disqualifying criteria set forth in this 
section, e.g., whether the applicant held a repair station certificate 
that had been revoked or that is in the process of being revoked. A 
truthful answer here would be imperative in view of proposed Sec.  
145.1012, because an intentionally false answer to the question could 
result in the suspension or revocation of any FAA-issued certificate 
held by that applicant.
    While the FAA understands the concerns of the commenters, the 
agency believes this requirement should be implemented to address 
safety concerns. For example, a chief inspector from a repair station 
that lost its certificate for serious maintenance-related safety 
violations applied for and received a new repair station certificate. 
That individual also became the chief inspector at the newly 
certificated repair station. While under the chief

[[Page 30062]]

inspector's direction, employees of the newly certificated station 
performed improper maintenance on a number of propellers, one of which 
came apart in flight causing a fatal accident.\8\
---------------------------------------------------------------------------

    \8\ As a result of this incident, the NTSB, in a safety 
recommendation dated February 9, 2004 (A-04-01 and A-04-02), 
expressed concern that the FAA did not have a mechanism for 
preventing individuals who were associated with a previously revoked 
repair station from continuing to operate through a new repair 
station.
---------------------------------------------------------------------------

    The FAA already has such a mechanism in place for air carriers and 
commercial operators. Section 119.39(b) allows the FAA to deny an 
application for a part 121 or 135 air carrier certificate or operating 
certificate based on prior relevant enforcement action. The FAA can 
deny certification to an applicant who is substantially owned by (or 
intends to fill a management position with) an individual who had a 
similar interest in a certificate holder whose certificate was (or is 
being) revoked when that individual materially contributed to the 
circumstances causing the revocation process.
    The FAA proposes new language (in Sec.  145.1051(e)) to detail 
conditions under which a person may be denied a repair station 
certificate. The changes the FAA propose are based to a large extent on 
the language contained in Sec.  119.39(b). The FAA's proposal would 
authorize the agency to deny a repair station application if:
     The applicant previously held a repair station certificate 
that was revoked.
     The applicant intends to fill or fills a management 
position with an individual who exercised control over or who held the 
same or a similar position with a certificate holder whose repair 
station certificate was revoked, or is in the process of being revoked. 
That individual must have materially contributed to the circumstances 
causing the revocation or causing the revocation process.
     An individual who would hold a management position 
previously held a management position with a certificate holder whose 
repair station certificate was revoked, or is in the process of being 
revoked. The individual must have materially contributed to the 
circumstances causing the revocation or causing the revocation process.
     An individual who would have control over or substantial 
ownership interest in the applicant had the same or similar control or 
interest in a certificate holder whose repair station certificate was 
revoked, or is in the process of being revoked. That individual must 
have materially contributed to the circumstances causing the revocation 
or causing the revocation process.
    The current regulations (Sec.  145.55(a)) contemplate the holder of 
a repair station certificate voluntarily surrendering the certificate 
to the FAA, in which case it would cease to be effective. This 
voluntary surrender provision is sometimes abused in an attempt to 
thwart an ongoing investigation. The FAA is aware that sometimes after 
an enforcement investigation has commenced, the certificate holder will 
attempt to surrender the certificate as a means of stopping the 
enforcement action. It is the FAA's policy, however, not to accept the 
voluntary surrender of a certificate in those circumstances. The FAA's 
Compliance and Enforcement Program (FAA Order 2150.3B at Ch 5, Para. 
10(b)) instructs FAA investigative personnel to refuse the voluntary 
surrender of a certificate if it appears the surrender is being 
attempted to avoid a certificate action. In those cases, the 
investigative personnel are to continue with the investigation and 
recommend enforcement action, if appropriate. As discussed in paragraph 
f (Duration and Renewal of Certificate (current Sec.  145.55/proposed 
Sec.  145.1055)) below, the FAA is proposing to amend the text 
currently in Sec.  145.55 to add a new condition to the certificate 
surrender provision--that acceptance for cancellation by the FAA of a 
certificate offered for surrender is necessary to render the 
certificate no longer effective. This change would highlight and 
provide additional notice to the holders of repair station certificates 
of the FAA's policy against potential violators merely surrendering 
their certificates to avoid enforcement action. Unless the FAA accepted 
the certificate for surrender, it would remain effective for 
administrative and enforcement purposes, even if the certificate holder 
ceased operations. Accordingly, in the event of an enforcement action 
that might result in the suspension or revocation of a repair station 
certificate, the enforcement process could continue and, in the case of 
a revocation, a record would exist to support the certificate denial 
provisions proposed in this paragraph.
    The FAA recognizes that the proposed language does not contain an 
appeal or reconsideration procedure. This is because a process already 
exists in current Sec.  13.20, which addresses, among other things, 
orders of denial. Paragraph (b) of that section provides, in pertinent 
part, that unless an emergency exists requiring the immediate issuance 
of an order of denial, the affected person (the applicant) must be 
provided with notice prior to issuance of an order of denial. Paragraph 
(c) further provides that, within 30 days after service of the notice, 
the affected person may reply in writing or request a hearing in 
accordance with subpart D of part 13. Subpart D of part 13 provides the 
Rules of Practice for FAA Hearings. Thus, applicants who are denied a 
repair station certificate would be provided with appropriate due 
process through the means of an evidentiary hearing.
e. Issue of Certificate (Current Sec.  145.53/Proposed Sec.  145.1053)
    Current Sec.  145.53(a) states that, subject to three exceptions, a 
person who meets the requirements of part 145 is entitled to a repair 
station certificate with appropriate ratings prescribing such 
operations specifications and limitations as are necessary in the 
interest of safety. Since proposed Sec.  145.1051 would provide a 
mechanism for the FAA to deny a certificate, an applicant would no 
longer be ``entitled'' to a certificate.
    The FAA is proposing in Sec.  145.1053(a) that an applicant could 
be found ``eligible to be issued'' a certificate. This proposed change 
is consistent with other certification requirements, such as in parts 
121 and 135, where the FAA has the authority to deny a certificate. In 
addition, the FAA proposes to remove the three exceptions from this 
paragraph as they refer to additional requirements for particular 
applicants, not exceptions to the eligibility requirements.
    Section 145.53(b) sets forth the procedure to certify repair 
stations located in a country with which the United States has a 
bilateral aviation safety agreement. This procedure is based on the 
certification from the civil aviation authority of the country that the 
applicant meets the requirements of part 145.
    The FAA must consider that the United States may enter into a 
bilateral agreement with a civil aviation authority other than a 
national aviation authority. This situation already exists in Europe. 
The European Union formed the European Aviation Safety Agency (EASA) to 
carry out those civil aviation safety functions that were previously 
the domain of national aviation authorities.
    Therefore, the FAA is proposing in Sec.  145.1053(b) to allow the 
FAA to certify a repair station outside the U.S. based on a 
certification from an authority acceptable to the FAA. This change 
would allow the FAA to make the finding based on a recommendation from 
a national aviation authority, EASA, or any other EASA-like entity that 
may be created in the future.

[[Page 30063]]

f. Duration and Renewal of Certificate (Current Sec.  145.55/Proposed 
Sec.  145.1055)
    As discussed in paragraph d (Application for Certificate--Denial 
(proposed Sec.  145.1051(e)) above, the FAA has experienced instances 
in which a certificate holder surrendered its certificate to the FAA in 
order to stop an investigation that the holder suspected would lead to 
an FAA order suspending or revoking the certificate because of known or 
suspected serious violations of the regulations. In the case of a 
repair station, the holder of a repair station certificate could 
attempt to take advantage of the provision in current Sec.  145.55, 
regarding surrender of the certificate. Upon surrender the certificate 
would no longer be effective, and there would be no certificate that 
could be suspended or revoked. This is an abuse of the surrender 
provision, as it was never intended as a device to stop an 
investigation and possible enforcement proceeding. In proposed Sec.  
145.1055, the FAA would add a new condition to rendering a surrendered 
certificate ineffective. Under the proposal, a surrendered certificate 
would remain effective unless the FAA accepted it for cancellation.
    As the discussion in paragraph d points out, the FAA's Compliance 
and Enforcement Program (FAA Order 2150.3B at Ch 5, Para. 10(b)) 
instructs FAA investigative personnel to refuse the voluntary surrender 
of a certificate if it appears the surrender is an attempt to avoid a 
certificate action. The amendment proposed here would provide 
additional notice to all holders of repair station certificates that 
successfully surrendering a repair station certificate for cancellation 
requires not only the offer of surrender, but also the FAA's acceptance 
of that offer. As we noted above, unless and until the FAA accepts for 
cancellation a surrendered certificate, the certificate would remain 
effective for administrative and enforcement purposes, even if the 
holder ceased operations.
    Current Sec.  145.55(c) sets forth what a certificated repair 
station located outside the United States must provide to renew its 
certificate. In addition to the items listed in that provision, a 
certificated repair station located outside the United States must pay 
a fee for service as a condition for renewal. The requirement to pay 
this fee as part of the renewal application is not in Sec.  145.55(c) 
even though it is a requirement found in 14 CFR part 187. The FAA is 
proposing in Sec.  145.1055(c)(3) that, as a condition of renewal, the 
fee prescribed by the FAA has been paid.
g. Capability List (Current Sec.  145.215/Proposed Sec.  145.1215)
    During the repair station certification process, an applicant's 
ratings are established following a demonstration to the FAA that the 
applicant is capable of performing maintenance on specific articles. 
Following certification, the FAA expects that a repair station 
continues to manage and control its capabilities on each individual 
article it maintains. This is accomplished by the repair station 
ensuring that it has, for example, trained personnel, and the necessary 
data, facilities, and equipment.
    Under the current Limited rating, a repair station is required to 
document each article it maintains on either a capability list, or on 
the repair station's operations specifications. For Class ratings, the 
FAA assumes that a repair station, using its own methods, manages its 
capabilities with the same level of detail (although this is not 
required). Under this Class rating system, what an individual repair 
station is actually capable of maintaining is for the most part known 
only to the repair station and the individual FAA principal 
inspector(s) assigned to manage that repair station's certificate.
    The FAA believes it is critical that both a repair station and the 
FAA are able to identify the actual certified capabilities of that 
repair station at any given time. It is important that the actual 
capabilities of a repair station are documented and that the 
documentation is current. The 2006 NPRM was not clear as to how the 
articles should be listed on the capability list. The FAA is proposing 
to define what is required on the capability list by adding two terms. 
The first, ``series as applicable,'' would recognize that not all 
models have series. The second, ``basic part number,'' would be added 
to clarify that it is not necessary to list each model or part ``dash 
number.'' The requirements for identifying articles on the capabilities 
list would provide clarity, consistency, and flexibility.
    If the repair station chooses to use a capability list, the 
proposed rule would require that it identify each airframe, powerplant, 
or propeller by manufacturer, model, and series as applicable. For a 
component rating, the proposed rule would require that the list 
identify each component for which the repair station is rated by 
manufacturer, manufacturer-designated nomenclature, and basic part 
number.
    Currently, it is required that this level of documentation exists 
for each repair station with a Limited rating. The documentation is 
either on a capability list or listed on the repair station's 
operations specifications. For all ratings under the current rule, 
including Class ratings, a repair station must ensure that it has the 
housing, facilities, equipment, material, technical data, and trained 
personnel in place prior to performing maintenance on an article. To 
make this determination today, a repair station must be aware of the 
manufacturer, model, series, nomenclature, and basic part number, for 
example, of each article it wishes to maintain. Otherwise, the repair 
station would not know what data to obtain, what subjects to train 
personnel in, and what equipment to purchase.
    The current practice of issuing Class ratings was found to have 
limitations and unforeseen consequences that were not apparent until 
the advent of new technology components and aircraft. Class ratings 
entitled repair stations to work on articles neither they nor the FAA 
ever envisioned would exist at the time the rating was issued. That the 
repair station would limit itself from working on certain articles for 
which it was not fully capable essentially provided, in effect, a 
limited Class rating. This proposed rule would eliminate Class ratings 
and require the ``writing down'' of this identifying information in a 
standard format for all repair stations. From this perspective, the FAA 
believes the burden on the industry would be an administrative one, in 
particular for those currently holding a class rating. However, the 
burden should be, for the most part, limited to the onetime transfer of 
the capability list to a standard format acceptable to the FAA. The FAA 
requests specific comments, observations, and suggestions regarding the 
elimination of class ratings.
    To ease this burden and to standardize the method used to document 
capabilities, the FAA may develop a web-based capability list. The FAA 
believes that an FAA-hosted automated capability list, if created, 
should have a positive impact on FAA staff and resources. Currently, a 
certificated repair station with a Limited rating has the option to 
list the articles for which it is rated on a capabilities list, and to 
expand that list through a self-evaluation process. Under this proposed 
rule, all repair stations could proceed in one of two ways to add an 
article to their capabilities list. First, a repair station could 
submit a request to the FAA for approval. The request would have to 
document that the repair

[[Page 30064]]

station is capable of performing the requested work--it would have to 
demonstrate that it has the technical data, housing, facilities, 
equipment, material, processes, and trained personnel to perform the 
work on the article for which it seeks approval. Second, either during 
the repair station's initial application process, or later through an 
amendment to its operations specifications in accordance with proposed 
Sec.  145.1058, the repair station could seek a general authorization 
in its operations specifications to perform a self-evaluation each time 
it wishes to add an article to its capabilities list. Similar to the 
criteria used in the individual request to the FAA method discussed in 
option one, the self-evaluation would be done to determine that the 
repair station has the technical data, housing, facilities, equipment, 
material, processes, and trained personnel to perform the work on the 
article it wishes to add to its capabilities list. If the self-
evaluation determines that those criteria are met, the repair station 
could add the article without specific FAA approval.
    The FAA considers the capabilities list self-evaluation process to 
be similar in concept to the self-evaluation process expected under the 
current Class ratings system. Both processes allow for a repair station 
to add to its capabilities list independent from FAA review. It is not 
the FAA's intent to reduce this flexibility with this proposed rule. 
However, under the current rule, Class ratings should not be authorized 
unless the repair station can prove the capability to maintain a 
representative number of products under the rating. Unlike the Class 
rating which considers a repair station's ability to maintain a range 
of product models, the proposed capability list self-evaluation 
authorization would take into account the adequacy of a repair 
station's quality control system to control the expansion of its 
capabilities independent from FAA review. A risk-assessment process 
would be used by the FAA to evaluate a new repair station applicant's 
ability to manage a self-evaluation program. Existing repair stations 
using a capability list and those with Class ratings could be 
authorized to perform self-evaluations for future capability changes 
and would not be required to reapply for this authorization. During the 
24 months of the transition period, there would be no requirement for 
existing repair stations to perform self-evaluations on their current 
capabilities beyond what is contained in their current procedures.
    Proposed Sec.  145.1215(f) would require each repair station with a 
capability list to review its capabilities at least every two years, 
and to remove any article from the list that it is no longer capable of 
maintaining. The FAA believes this is a necessary quality element to 
ensure a repair station's capability list continually reflects its 
actual repair station capabilities.
h. Contract Maintenance (Current Sec.  145.217/Proposed Sec.  145.1217)
    The FAA placed this section, Contract Maintenance, under the 
discussion of the proposed certification requirements because a repair 
station's contracting capability must be understood and evaluated 
during the certification of the repair station.
    With the exception of a new paragraph (b)(4), and an expansion of 
the restrictions in paragraph (c), the proposed changes in this section 
are made to clarify the intent of the current rule. As in the current 
rule, proposed Sec.  145.1217(a) allows a repair station to contract a 
``maintenance function'' to an outside source provided certain 
conditions are met. Much confusion exists around the term ``maintenance 
function'' and when FAA approval is required when a repair station 
contracts such a function to an outside source.
    The FAA does not approve who a certificated repair station 
contracts with. While this information must be maintained and made 
available to the FAA, each repair station is free to choose with whom 
it contracts. However, the rule currently requires, and this proposed 
rule would continue to require, that the FAA approve the maintenance 
function to be contracted. The basis of this requirement extends back 
to the original certification of the repair station. When an applicant 
applies for a rating, the applicant must declare what functions within 
the rating the repair station will contract out.
    For example, an applicant for a Component rating to overhaul a 
specific fuel pump model may not be capable of rewinding armatures and 
may plan to contract this function out. Although the Component rating 
is a blanket authorization to overhaul the pump, the applicant has 
formally declared what functions within the rating it will contract 
out--in this case, armature rewinding. Another example would be an 
applicant for an Airframe rating who does not plan on developing 
capabilities for component overhaul and repair. The function contracted 
out would be component overhaul and repair. Proposed Sec. Sec.  
145.1217(a)(1) and 145.1209(e)(5) would continue to require the 
certificated repair station to maintain this contracted function 
information for the duration of the repair station certificate.
    The overriding intent of current Sec.  145.217(a)(1), and proposed 
Sec.  145.1217(a)(1) is not for the FAA to restrict the ability of a 
repair station to contract out maintenance, but rather to ensure the 
repair station's capabilities are clearly stated at all times. 
Nevertheless, as currently provided in Sec.  145.217(c) and in proposed 
Sec.  145.1217(c), the FAA will not approve the contracting out of all 
maintenance functions encompassed in the repair station's rating. Such 
a practice would effectively render the part 145 certificate 
meaningless.
    Clarification is needed as to what is not contract maintenance. 
Part 145 does not regulate the ``brokering'' of a complete article by a 
repair station. If a repair station is not exercising the privilege of 
its certificate, it is not contracting a maintenance function as 
covered by the proposed rule. A repair station can, as can any other 
certificated or noncertificated person, receive, ship, arrange for 
maintenance, or act as agent in the brokering of maintenance for others 
without being considered to be contracting maintenance. When a repair 
station exercises the privilege of its certificate by engaging in 
maintenance for which it is rated, and then initiates the involvement 
of another person in that maintenance, the repair station is engaging 
in contract maintenance.
    For example, if a repair station with an Airframe rating removes an 
engine and ships the engine to a repair station with a Powerplant 
rating, it is not engaging in contract maintenance because it is not 
rated to perform powerplant maintenance. However, if during inspection 
it discovers a damaged engine mount, and subsequently sends the engine 
mount to another repair station or noncertificated facility for a weld 
repair and approves the work for return to service, it would be 
contracting maintenance under the repair station rating (see proposed 
Sec.  145.1217). The repair station is contracting maintenance because, 
under its rating, it is authorized to do the work and approved it for 
return to service. Therefore, the repair station is exercising the 
privilege of its certificate in performing maintenance and it is rated 
for the weld repair by virtue of its Airframe rating.
    Throughout Sec.  145.217, the terms ``outside source'', ``outside 
facility'', and ``facility'' are used interchangeably. These terms are 
undefined and subject to inconsistent usage and confusion. For 
consistency and to eliminate confusion, the FAA proposes to replace 
these

[[Page 30065]]

undefined terms in proposed Sec.  145.1217 with the term ``person,'' 
which is defined in Sec.  1.1.
    The FAA is proposing in Sec.  145.1217(b)(1) to add a reference to 
the quality control system procedures proposed in Sec.  
145.1211(c)(1)(vi) to emphasize that the quality control system of each 
noncertificated person with whom a repair station contracts a 
maintenance function must be equivalent to its own. The contracting 
repair station must physically observe the quality control system of 
each noncertificated person with whom it wishes to contract and 
determine that it meets this standard before any maintenance is 
performed by that person.
    The FAA is also proposing a new provision (Sec.  145.1217(b)(4)) to 
the contracting rule to emphasize specifically that the personnel 
requirements set forth in proposed Sec.  145.1151(c) apply when 
maintenance is contracted to a noncertificated person. Current Sec.  
145.151(c) provides that each repair station must ensure that it has a 
sufficient number of qualified employees to ensure all work is 
performed in accordance with part 43. While it is implicit in that rule 
that those personnel requirements apply when work is contracted to 
noncertificated persons (because the contracting repair station is 
responsible for determining the airworthiness of articles before 
approving them for return to service), the FAA is proposing for clarity 
to add a phrase in proposed Sec.  145.1151(c) specifically referring to 
work contracted to a noncertificated person.
    To adequately perform the surveillance and verification 
requirements of Sec.  145.1217(b), a certificated repair station would 
need a sufficient number of employees with the training or knowledge 
and experience in the maintenance function performed by the 
noncertificated person. This is necessary to assess the noncertificated 
person's ability to correctly perform the work and the proper 
completion of the work. In contracting a maintenance function to a 
noncertificated person, a repair station is not absolved from having 
corporate technical knowledge of the work performed under its rating. 
If it is not able to ensure such knowledge base in its employees, a 
repair station must be limited from, and broker the maintenance 
function to, a person appropriately certificated to perform and approve 
the work for return to service.

4. Repair Stations Providing Maintenance for Air Carriers (Current 
Sec.  145.205/Proposed Sec.  145.1205)

    Current Sec.  145.205 contains, and proposed Sec.  145.1205 would 
contain, the regulations covering maintenance, preventive maintenance, 
and alterations performed for certificate holders under parts 121, 125, 
and 135, and for foreign air carriers or foreign persons operating 
U.S.-registered aircraft in common carriage under part 129.
a. ``Applicable Sections'' of a Maintenance Manual (Current Sec.  
145.205(a)/Proposed Sec.  145.1205(a))
    Currently, Sec.  145.205(a) states that a repair station working 
for an air carrier or a commercial operator that has a continuous 
airworthiness maintenance program under part 121 or part 135 must 
follow the carrier's or commercial operator's program and ``applicable 
sections of its maintenance manual.'' Before the 2001 final rule, Sec.  
145.2 specified the additional requirements for repair stations 
performing maintenance work for air carriers or commercial operators 
under the continuous airworthiness requirements of parts 121 and 127 
and for airplanes under the inspection program required by part 125. 
The FAA believed that parts of the regulation were difficult to follow 
because, for example, it required repair stations to comply with 
identified subparts, e.g., ``subpart L of part 121'' (except for 
certain specified sections). In an attempt at clarity, in the 1999 NPRM 
the FAA proposed reversing that logic and, in proposed Sec.  145.7, 
instead of listing the exceptions, the proposed rule identified the 
specific sections that, ``as applicable,'' would apply (e.g., ``Each 
certificated repair station * * * must, as applicable, comply with * * 
*'' the specified sections as listed.). That proposal also generated 
adverse comments. The references to the various specified sections in 
parts 121 and 135 ``as applicable'' continued to confuse some 
commenters, some of whom also incorrectly inferred that the FAA 
intended to impose additional requirements by listing specific sections 
of the rule.
    Based on these comments, the specific section references were not 
included in the 2001 final rule. These air carrier maintenance 
provisions are currently found in Sec.  145.205 and, generally 
speaking, require repair stations to follow the air carrier's or 
operator's program and ``applicable sections of its maintenance 
manual.'' Repair stations that provide this type of work have stated 
that the term ``applicable sections'' causes confusion because it is 
subjective and vague. They point out that air carriers, air operators, 
and the FAA's inspectors interpret the term differently. Commenters to 
the 2006 NPRM voiced similar concerns for similar reasons with the 
change proposed there. Specifically, we proposed that repair stations 
must comply with ``the applicable parts of this chapter and follow the 
air carrier or commercial operator's program and applicable sections of 
its maintenance manual.'' The confusion expressed by the commenters 
carries a common theme, all involving the reference to ``applicable 
sections'' or ``as applicable.''
    In proposed Sec.  145.1205(a), we are attempting to clarify this 
issue by stating that when a repair station performs work as a 
maintenance provider for an air carrier or commercial operator, the 
repair station must perform that work in accordance with the 
instructions provided by that air carrier or air operator.
b. Certificate Holders Operating Under 14 CFR Part 125 (Current Sec.  
145.205(b)/Proposed Sec.  145.1205(b))
    In proposed Sec.  145.1205(b), the FAA would change the language 
currently in Sec.  145.205(b) to include all operators that may have an 
approved aircraft inspection program. Currently, Sec.  145.205(b) 
references only FAA-approved inspection programs for part 125 
operators. However, some persons operating under part 135 may also have 
an FAA-approved inspection program and others may have selected an 
inspection program under Sec.  91.409(e). Therefore, references to part 
135 and Sec.  91.409(e) would be included in proposed Sec.  
145.1205(b).
c. Foreign Persons Operating Under 14 CFR Part 129 (Current Sec.  
145.205(c))
    If a reference to a foreign air carrier or foreign person operating 
a U.S.-registered aircraft under part 129 is added to proposed Sec.  
145.1205(a), it is no longer necessary to include a provision similar 
to Sec.  145.205(c) in proposed Sec.  145.1205. Each of these part 129 
operators must have an FAA-approved maintenance program that must be 
followed by persons performing maintenance on these aircraft.
d. Line Maintenance (Current Sec.  145.205(d))
    The 1999 NPRM introduced the concept of line maintenance for repair 
stations. As proposed, line maintenance was intended to allow repair 
stations currently located at an air carrier's line station to perform 
simple scheduled servicing and unscheduled maintenance

[[Page 30066]]

that could be performed safely without the need to house the aircraft. 
This was intended to provide relief from the requirements of Sec.  
145.103(b), which requires a repair station with an airframe rating to 
have the ability to house the largest aircraft for which it is rated. 
This maintenance would not necessarily require housing the entire 
aircraft.
    For reasons unstated, the 2001 final rule did not include a 
requirement that line maintenance be limited to those repair stations 
located at air carrier line stations. In addition, it introduced the 
concept that a repair station could perform line maintenance upon 
authorization by the FAA. It also included a definition of line 
maintenance (in Sec.  145.3) that included ``any unscheduled 
maintenance resulting from unforeseen events.'' These additions imply 
that a repair station may perform `any unscheduled maintenance' without 
meeting the prerequisites of part 145 for an appropriate rating, simply 
based on the issuance of an `authorization' to perform `line 
maintenance' for an air carrier or commercial operator.
    Line maintenance was not intended to be a rating. Rather, it was 
meant to be an authorization for an appropriately rated repair station. 
The Sec.  145.103(b) housing requirement applies to a repair station 
holding an Airframe rating. Section 145.205(d) is an authorization 
providing relief from that requirement under limited circumstances.
    However, as applied, line maintenance authorization has been 
granted to repair stations without the appropriate ratings or 
facilities because the existing language implies that it is 
permissible. This was a concern expressed in comments in response to 
the introduction of the line maintenance authorization in 2001. In 
addition, the line maintenance concept has also resulted in repair 
stations that were created simply to perform line maintenance at many 
geographically disparate locations, which makes it almost impossible 
for the FAA to reasonably perform its safety oversight function.
    To rectify this situation, the FAA is proposing to eliminate the 
current line maintenance concept by not including a provision similar 
to Sec.  145.205(d) in proposed Sec.  145.1205.
    However, the performance of maintenance that could include line 
maintenance would still be an available option for a repair station. A 
repair station could be issued a limitation to an Airframe rating to 
identify and limit the work the repair station could perform. This 
could include line maintenance. With appropriate limitations, line 
maintenance is simply one example of work for which a limitation to an 
Airframe rating could be issued. With a limitation of line maintenance 
for a specified air carrier or commercial operator, the repair station 
would be permitted to perform maintenance limited to line maintenance, 
but there would be no authorization for line maintenance beyond the 
limitation to the rating.
    If the line maintenance work is to be accomplished temporarily away 
from the repair station, this could be accommodated under the 
provisions of Sec.  145.1203 (Work Performed at Another Location). If 
the location is in the United States and intended to be permanent, and 
is within the geographical boundaries of the local FAA Certificate 
Holding District Office, an additional fixed facility of the repair 
station as provided by proposed Sec.  145.1103(d) may be appropriate. 
If the location is not within the geographical boundaries of the 
Certificate Holding District Office, certification of a separate repair 
station or satellite repair station under proposed Sec.  145.1107 may 
be appropriate. This would reintroduce the original intent that this 
type of work would be limited to currently certificated repair stations 
at such locations where the work is needed.
    The current definition of line maintenance does not correctly 
describe the scope of this level of maintenance. Therefore the FAA is 
also proposing to revise the definition of line maintenance in proposed 
Sec.  145.1003(e). The definition would now reinforce that line 
maintenance is performed for air carriers, is generally performed at 
the ramp, parking area or gate, and typically will not exceed 24 
continuous hours per aircraft.

5. Other Proposed Changes

a. Applicability (Proposed Sec.  145.1001)
    A new applicability statement is necessary to address the 
transition period. This language would direct applicants to subparts F 
through J for the regulations that would apply to them. This new 
section would continue to state that a repair station certificate is 
issued for the performance of maintenance, preventive maintenance, and 
alterations on civil products to which part 43 applies. The FAA cannot 
compel a person to hold a repair station certificate, so the phrase in 
current Sec.  145.1 or is required to hold would be deleted as 
unnecessary. The FAA proposes instead that the rules would apply to any 
person who holds out as an FAA-certificated repair station.
b. Avionics (Proposed Sec.  145.1003(c))
    Aviation electronic technology has advanced dramatically since the 
advent of the current ratings system. Because of these advancements, 
the ARAC recommended the addition of an avionics rating. The FAA 
proposed such a rating in the 2006 NPRM. The commenters generally 
opposed a separate avionics rating. Most of these commenters stated 
that avionics are components and should simply be identified as such. 
Moreover, other commenters stated that confusion would exist if 
avionics were made a separate category of component.
    To recognize advances in the field of aviation electronics and to 
reduce any confusion that exists regarding the differences and overlaps 
in the terms instruments, electronics, electrical systems, and 
avionics, the FAA is proposing to add a definition for the term 
``Avionics'' in proposed Sec.  145.1003(c). Under this definition, 
``Avionics'' (i.e., aviation electronics) would be any component 
generally associated with processing digital electronic signals. 
Examples of such components include radios and navigation equipment, 
radar, and data processors.
c. Repair Station Records: Falsification, Reproduction, or Alteration 
(Proposed Sec. Sec.  145.12 and 145.1012)
    At present, part 145 does not contain a general prohibition against 
making fraudulent or intentionally false entries in repair station 
records or for making fraudulent reproduction or alteration of records 
or reports. Other parts of the regulations do contain similar 
proscriptions. For example, part 43 contains such prohibitions for 
maintenance records or reports, with a consequence of suspension or 
revocation of the applicable airman, operator, or production 
certificate and other specified privileges (see Sec.  43.12.). Other 
regulations contain similar prohibitions (e.g., intentionally false 
entries on applications and other records, and cheating on tests) with 
similar consequences (i.e., suspension or revocation of FAA-issued 
certificates or ratings (see. e.g., Sec. Sec.  61.37, 61.59, 63.18, 
63.20, 65.18, 65.20, and 67.403.)). While Sec.  43.12 provides for 
suspension or revocation of the applicable airman and other mentioned 
certificates and privileges for requisite maintenance record 
falsifications or fraudulent acts, it does not provide for repair 
station certificate suspension or revocation for the same kind of 
conduct.
    Therefore, the FAA is proposing a new Sec.  145.12 in subpart A, 
and a new

[[Page 30067]]

Sec.  145.1012 in subpart F, that would be similar to Sec.  43.12. 
Under 49 U.S.C. 44701, the FAA is charged with promoting aviation 
safety. The importance of accurate records and reports cannot be 
overstated. In view of the FAA's limited resources, ``the agency, and 
ultimately the flying public, depend heavily on the integrity of the 
system of self-reports.'' Twomey v. National Transp. Safety Bd., 821 
F.2d 63, 68 (1st Cir. 1987). Because of the importance of honest and 
trustworthy records and reports to aviation safety, the FAA believes 
that any person who makes or causes to be made an intentionally false 
or fraudulent entry in any record or report the agency needs to provide 
proper oversight of repair stations should be subject to enforcement 
action as noted above. Accordingly, the agency is proposing suspension 
or revocation of not only the repair station certificate, but any 
certificate, approval, or authorization issued by the FAA and held by 
that person.
d. Amendment to or Transfer of Certificate (Current Sec.  145.57/
Proposed Sec.  145.1056)
    Although the one thousand series numbers (1xxx) in proposed 
subparts F through J generally have the same one hundred series number 
(xxx) for each corresponding regulation section in the current rule 
(subparts A through E), the FAA is proposing to deviate from this 
scheme for this section in order to accommodate two new proposed 
sections on operations specifications. Therefore, the proposed new 
section on ``Amendment to or transfer of certificate'' would be 
numbered Sec.  145.1056, whereas the current section is numbered Sec.  
145.57. The proposed section captioned ``Operations specifications'' 
would be numbered Sec.  145.1057. Also, as written, current Sec.  
145.57 contains confusing language that implies a repair station must 
apply for a change to its certificate without reason. The proposed 
section would change the confusing language and add a time limitation 
for submitting an application for a certificate amendment, change in 
location, or transfer of certificate.
e. Operations Specifications (Proposed Sec.  145.1057)
    Currently, part 145, Repair Stations, introduces the requirement 
for operations specifications in Sec.  145.5, Certificate and 
operations specification requirements. Unlike other operating rules 
requiring operation specifications, part 145 does not explain what 
operation specifications are or what they must contain. Also unlike 
part 119, which clearly states in Sec.  119.7 that with limited 
exceptions operations specifications are not a part of the certificate, 
some operators and FAA personnel assume repair station operations 
specifications are an extension of the repair station certificate, 
while others do not. The FAA is proposing to specify how long 
operations specifications are valid, what they must contain, and where 
they must be located. The FAA would also clarify that except for those 
operation specifications detailing ratings and limitations, repair 
station operations specifications are not a part of the repair station 
certificate.
f. Amending Operations Specifications (Proposed Sec.  145.1058)
    The proposed clarification of operations specifications in proposed 
Sec.  145.1057, specifying that operations specifications are not a 
part of a certificate, would allow the FAA to make administrative 
changes to operations specifications other than ratings or limitations 
(e.g., definitions or formatting) without having to resort to 
certificate action, when appropriate notice is given to the repair 
station. This section would provide procedures to be followed by both 
the FAA and repair stations for initiating changes to the operations 
specifications. Additionally, procedures would be provided for affected 
repair stations to petition for reconsideration of adverse decisions by 
the FAA, both in emergency and non-emergency situations.
g. Housing and Facilities (Current Sec.  145.103/Proposed Sec.  
145.1103)
    The FAA is proposing to amend the rules for housing and facilities 
to require that the housing for the facilities, equipment, materials, 
and personnel be both suitable and permanent. The agency is also 
proposing to provide an exception to the requirement that a repair 
station with an airframe rating must be able to enclose the largest 
type and model of aircraft on its operations specifications to 
facilitate those with a limitation to the airframe rating such that the 
entire aircraft would not need to be housed to provide appropriate 
environmental protection. As stated previously, this exception would 
facilitate repair stations with a limitation to perform line 
maintenance for air carriers. Finally, in addition to some minor 
clarifications, the FAA is proposing to allow a repair station to use 
multiple fixed locations if appropriate criteria are met.
i. Exception to Housing Requirement
    Under current Sec.  145.103(b), a certificated repair station with 
an Airframe rating must provide suitable permanent housing to enclose 
the largest type and model of aircraft listed on its operations 
specifications without consideration of the limits of the work being 
performed. Even if the work is limited to a certain part, portion, or 
section of the aircraft, a repair station must be able to house the 
entire aircraft if it has an Airframe rating.
    To retain the level of safety established by certification of a 
repair station under part 145, but to lessen the impact to those repair 
stations performing line maintenance or other maintenance not normally 
associated with a requirement to have housing to enclose the entire 
aircraft, the FAA is proposing, in Sec.  145.1103(b), to provide relief 
from the housing requirement of Sec.  145.103(b). The proposed change 
would allow a repair station with an Airframe rating and appropriate 
limitations to that rating to perform the limited airframe maintenance 
without having housing to enclose the entire aircraft. If, as 
determined by the FAA, the repair station provides adequate 
environmental protection for the work being performed under the 
limitation to its rating, it would not be required to house the 
complete aircraft.
    This is consistent with the housing exception for line maintenance 
found in Sec.  145.205(d). The proposed rule permits an evaluation of 
the housing requirements based on limitations to the Airframe rating. 
This would allow for the certification of a repair station with an 
Airframe rating, limited to the performance of maintenance such as 
simple daily scheduled checks or some work limited to aircraft 
interiors, to not have housing to enclose the entire aircraft. Repair 
stations currently performing work under a line maintenance 
authorization could be provided appropriate housing relief by this 
proposed section if they otherwise meet the requirements of part 145. 
This change would provide clarity and some relief in not requiring that 
the entire airframe be enclosed if the FAA determines the repair 
station provides adequate environmental protection for the work being 
performed. This option would be available only for repair stations with 
an Airframe rating with limitations. If a repair station has an 
Airframe rating with no limitations or limitations allowing work on 
substantially an entire airframe, it would be required to have suitable 
permanent housing to enclose the largest aircraft for which it is 
rated.

[[Page 30068]]

ii. Permanent Location
    Paragraph (a)(1) of Sec.  145.103 requires each certificated repair 
station to provide housing for the facilities, equipment, materials, 
and personnel consistent with its ratings. It has long been FAA policy 
that a repair station must have a permanent fixed location from which 
to operate. There have been occasions where the housing used to obtain 
certification was either relinquished by the certificate holder to the 
facility owner, or further sub-leased for other purposes rendering the 
repair station essentially unable to perform the maintenance for which 
it was certificated. The FAA believes it is necessary to reinforce the 
need for repair stations to provide assurance that work is performed 
adequately and to the manufacturer's standards. This means protection 
of workers from unfavorable environmental conditions so that their 
performance and the airworthiness of the articles they are maintaining 
are not adversely affected. Repair stations would be required to 
provide suitable and permanent housing to protect the articles being 
maintained from contamination, foreign object debris, or conditions 
that may promote corrosion or other deteriorating conditions.
    Therefore, the FAA proposes to revise this section to require 
``suitable permanent'' housing. A requirement for permanent housing 
refers not only to the construction of the facility, but also to the 
fact that the certificate holder must have sole operational control at 
all times of the housing it uses to obtain certification, either by 
ownership or by contract. The FAA understands that repair stations may 
share the same hangar or building, and this would still be allowed 
under this proposal. However, these repair stations may not share the 
same space in that hangar or building and each repair station must have 
full control of its space at all times. In addition, it must be clearly 
defined as to what space is under the control or contract of each 
repair station and this space must be clearly defined in each repair 
station's manual as required in proposed Sec.  145.1209(b).
iii. Multiple Fixed Locations
    The FAA is also proposing to add a new Sec.  145.1103(d) to allow a 
repair station to use multiple fixed locations in performing 
maintenance, preventive maintenance, and alterations under its repair 
station certificate. Additional fixed locations are not recognized in 
the current rule. This has led to inconsistent or non-authorization of 
the use of additional permanent locations. Repair stations often find 
it necessary to use locations other than the primary facility for 
environmental reasons (such as noise abatement for an engine overhaul 
shop doing test runs). In recognition of this need, additional fixed 
locations could be authorized if:
     The repair station applies for and receives approval of 
additional fixed locations.
     The location is within the geographic boundaries of the 
certificate holding district office.
     The location is permanently affixed and is under the 
managerial control and authority of the repair station certificate.
     The maintenance functions performed at the additional 
fixed locations are in support of and within the scope of the ratings 
listed on the repair station operations specifications.
    If a fixed location were located outside of the geographic boundary 
of the FAA office with oversight responsibilities, the additional fixed 
location either would have to be certificated as a satellite repair 
station and meet the requirements of proposed Sec.  145.1107, or it 
would require its own repair station certificate under the provisions 
of proposed Sec.  145.1051 and Sec.  145.1053.
iv. Additional Proposed Changes
    The FAA is also proposing, in Sec.  145.1103(a)(2), to delete the 
reference to specialized services currently found in Sec.  
145.103(a)(2). When used in conjunction with maintenance, preventive 
maintenance, and alterations, the reference to specialized services is 
redundant because complete maintenance of an article includes all 
necessary services. Finally, the FAA is also proposing to include 
protection of articles in Sec.  145.1103(a)(2)(iv). Currently, a repair 
station's facility is required to include sufficient space to segregate 
articles and materials stocked for installation from those undergoing 
maintenance or alterations. The FAA is proposing to change ``segregate 
articles * * * '' in current Sec.  145.103(a)(2)(iv) to ``segregate and 
protect articles * * *.'' in Sec.  145.1103(a)(2)(iv) to be consistent 
with the intent not only to segregate but also to protect articles as 
stated in current Sec.  145.103(a)(2)(i) and in proposed Sec.  
145.1103((a)(2)(i) ``for the proper segregation and protection of 
articles during all maintenance, preventive maintenance, or 
alterations.'' It is inconsistent to require articles to be protected 
during maintenance but not require them to be protected in storage 
prior to being used in maintenance.
    To ensure that the housing and other environmental protections 
continue in force, the FAA is proposing to change the phrase in the 
first line of Sec.  145.103(a) from ``repair station must provide-* * 
*'' to ``repair station must provide and maintain- * * *'' in proposed 
Sec.  145.1103(a).
    Finally, a grammatical error currently exists in Sec.  
145.103(a)(2)(ii) that the FAA would correct in proposed Sec.  
145.1103(a)(2)(ii) by adding the word ``of'' near the end of the 
sentence so that it reads ``alteration of articles * * *.''
h. Satellite Repair Stations (Current Sec.  145.107/Proposed Sec.  
145.1107)
    In proposed Sec.  145.1107(a), the FAA proposes to remove the 
current restriction in Sec.  145.107(a)(1) that a satellite repair 
station may not hold a rating not held by the certificated repair 
station with managerial control. The FAA believes that the agency 
should not impose these restrictions on satellite repair stations.
    Additionally, the FAA proposes to require that an applicant for a 
satellite repair station submit the same repair station and quality 
control system manuals as the repair station with managerial control 
(proposed Sec.  145.1107(a)(2)). The satellite repair station would 
have to identify any specific processes or procedures unique to the 
satellite repair station in appendices or sections of the manuals.
    The other new paragraphs proposed in Sec.  145.1107(a) would 
require a satellite repair station to:
     Submit the same training program as the repair station 
with managerial control, with processes or procedures unique to the 
satellite or managerial repair station identified (proposed paragraph 
(a)(3)).
     Demonstrate compliance with its manual and any additional 
manual sections applicable to the satellite (proposed paragraph 
(a)(4)).
     Meet the housing and facility requirements of proposed 
Sec.  145.1103 since it is a separately certificated repair station 
(proposed paragraph (a)(5)).
     Have its own facility in a location with a physical 
address other than the repair station with managerial control (proposed 
paragraph (a)(6)).
    Finally, the requirement currently in Sec.  145.107(a)(2) that the 
satellite repair station meet the requirements for each rating it holds 
would be retained in proposed Sec.  145.1107(a)(1).
i. General (Current Sec.  145.101/Proposed Sec.  145.1101)
    The FAA proposes to add tools and test apparatus to the items that 
a repair station must provide under proposed Sec.  145.1101. Tools and 
test apparatus are added for consistency with the maintenance 
performance requirements of Sec.  43.13(a).

[[Page 30069]]

    The FAA also proposes to add the word ``any'' to near the end of 
the sentence so that it reads ``any rating the repair station holds.''
j. Equipment, Materials, and Data Requirements (Current Sec.  145.109/
Proposed 145.1109)
    The FAA is proposing to add test apparatus and data to the list of 
items that a repair station would have to have on the premises and 
under its control when it is performing work requiring its use. This 
would remove potential uncertainty surrounding whether a necessary 
piece of test apparatus or data was considered to be ``equipment,'' 
``tools,'' or neither. In addition, including test apparatus would be 
consistent with the requirements in Sec.  43.13(a). Accordingly, the 
FAA is proposing to revise the section heading to include test 
apparatus.
    The FAA is also proposing to include an element of the relief 
provided in current Sec.  145.51(b) pertaining to meeting the equipment 
requirement by having a contract with another person to make the 
equipment available when the work it requires is being performed (see 
proposed Sec.  145.1109(b)). The issue of whether all the equipment 
must be on site for initial inspection was discussed above in the 
context of the agency's proposing to delete the contract provision from 
the initial certification requirements in proposed Sec.  145.1051(b). 
Although the agency believes it is important during initial 
certification to observe all the necessary equipment, tools, and 
apparatus for its placement on site and to evaluate an applicant's 
ability to use it, the FAA agrees with previous commenters who voiced 
concerns about not having to purchase expensive, seldom used equipment 
and to have it permanently in place when they could instead obtain it 
through contract when needed.
    The relief proposed in Sec.  145.1109(b) would allow a repair 
station to meet the equipment, tools, and test apparatus requirement of 
proposed Sec.  145.1109(a) for specialized and rarely used equipment, 
tools, and test apparatus if the repair station demonstrates to the FAA 
that it has made arrangements with another person to make those items 
available when their use is required. All equipment must be in place 
during the demonstration and inspection phase of certification.
    Currently, Sec.  145.109(d) lists certain documents that repair 
stations must keep that are necessary for performing maintenance, 
preventive maintenance, or alterations. It requires that the documents 
be ``current and accessible when the relevant work is being done.'' A 
strict reading of the requirement that these documents be current has 
created unnecessary compliance and enforcement issues. A recent FAA 
legal interpretation clarified that ``current'' in this context means 
``up to date,'' i.e. the most recent version (revision) of the document 
(e.g. maintenance manual) issued by the manufacturer. This is a 
paperwork requirement only, as the same interpretation made clear that 
if a maintenance provider used a prior version/revision of a manual in 
performing maintenance, there would be no violation of the maintenance 
performance rules unless the FAA could show that the data used was no 
longer acceptable. This is so because of the flexibility provided in 
the maintenance regulations. For example, the performance standards set 
forth in Sec.  43.13(a) provides that the person performing maintenance 
shall use the current manufacturer's maintenance manual or Instructions 
for Continued Airworthiness [ICA], ``or other methods, techniques, and 
practices acceptable to the Administrator * * *.''
    Enforcement issues have arisen because some inspectors have 
concluded that the requirement to have a document be ``current and 
accessible'' when work is being done means that the most up-to-the-
minute manual revision be incorporated into the repair station's system 
even though such immediate incorporation may not be realistic. This can 
be due to a number of real-world constraints, (e.g., mail delays, 
revision publishing and distribution logistics, and export constraints 
pertaining to technical data).
    The housekeeping means for assuring appropriate compliance is 
contemplated in the current rule through the repair station's quality 
control system. Currently, Sec.  145.211(a) requires that each repair 
station establish and maintain a quality control system acceptable to 
the FAA that ensures the airworthiness of the articles being 
maintained. Section 145.211(c) provides that, as part of a repair 
station's acceptable quality control system, the repair station must 
keep current a quality control manual in a format acceptable to the 
FAA, and specifies what that manual must include. Section 
145.211(c)(1)(v) provides specifically that the manual include a 
description of the procedures used for ``[e]stablishing and maintaining 
current technical data for maintaining articles.''
    In developing acceptable procedures for assuring the currency of 
the technical data, repair stations typically work with their local 
Certificate Holding District Offices (CHDOs) to tailor procedures that 
consider realistic time constraints to incorporate manual revisions and 
other changes/updates into their systems. So long as a repair station 
and its CHDO have established and agreed to realistic procedures for 
establishing and maintaining current data, it would be anomalous for an 
inspector to threaten enforcement action citing Sec.  145.109(d) 
because a manufacturer had issued a revision that the repair station 
had not reasonably, in following its FAA-accepted quality control 
system, incorporated into its manual system.
    In view of these considerations, and the fact that proposed Sec.  
145.1109(a) would require repair stations to have the technical data, 
etc., to perform their maintenance in accordance with part 43, a 
specific list of documents such as that found in current Sec.  
145.109(d) would be redundant and possibly limiting. Therefore, because 
proposed Sec.  145.1109(a) requires the technical data, equipment, 
tools, test apparatus, and materials required by part 43, we are 
deleting subparagraph Sec.  145.109(d) since it is inclusive in 
subparagraph Sec.  145.1109(a).
k. Supervisory Personnel Requirements (Current Sec.  145.153/Proposed 
Sec.  145.1153)
    Section 145.153(a) requires supervisors to oversee the work 
performed by any individuals who are unfamiliar with the methods, 
techniques, practices, aids, equipment, and tools used to perform 
maintenance. The FAA is proposing to simplify this requirement to 
specify that supervisors must be present to oversee the work being 
performed by the repair station (see proposed Sec.  145.1153(a).
    Section 145.153(b)(1) requires each supervisor employed by a repair 
station located inside the United States to be certificated under part 
65. Supervisors may supervise only as allowed by the privileges of the 
certificate held as provided in part 65. For example, a supervisor 
certificated with only a Powerplant rating may not supervise personnel 
doing airframe maintenance, as the Powerplant rating does not provide 
that privilege.
    The FAA is proposing in Sec.  145.1153(b)(1) to revise this 
requirement to state that the supervisor be appropriately certificated 
under part 65 for the work being supervised. Prior to the 2001 rule 
change, the language was clear in Sec.  145.39(d): ``Each person who is 
directly in charge of the maintenance functions of a repair station 
must be appropriately certificated under part 65 * * *''. The omission 
of ``appropriately'' in 2001 was an oversight that the FAA will correct 
by reinserting ``appropriately

[[Page 30070]]

certificated under part 65'' where such certification under part 65 is 
required. The appropriateness of the certificate is based in the 
privilege of the mechanic or repairman certificate issued under part 65 
subpart D or E. For example, a supervisor who holds a mechanic 
certificate with airframe and powerplant ratings issued under part 65 
would not be appropriately certificated to supervise work on 
instruments. A supervisor would need to hold a repairman certificate to 
supervise work on instruments. Currently, Sec.  145.153(b)(2) contains 
a different set of qualifications for a supervisor employed by a repair 
station located outside the United States. For example, a supervisor in 
a foreign repair station is not required to be appropriately 
certificated under part 65. To eliminate these two dissimilar 
standards, the FAA is proposing two alternative paths for supervisor 
qualification in a repair station located outside the United States. 
The first would require the supervisor to have the appropriate 
certification under part 65; the second would require the supervisor to 
meet the repairman eligibility requirements of Sec.  65.101(a)(1)(2)(3) 
and (5) (see proposed Sec.  145.1153(b)(2)(i) and (ii)).
    Finally, Sec.  145.153(c) requires repair stations to ensure that 
each supervisor understands, reads, and writes English. The FAA is 
proposing in Sec.  145.1153(c) that these supervisors also be able to 
speak English. This would help to confirm that supervisors read and 
understand English.
l. Inspection Personnel Requirements (Current Sec.  145.155/Proposed 
Sec.  145.1155)
    Section 145.155 sets forth the experience requirements for 
inspection personnel. Currently, this section requires only that 
inspectors be able to understand, read, and write English. The FAA is 
proposing to add a requirement to proposed Sec.  145.1155(b) that 
inspectors be able to speak English as well. As stated above, the FAA 
believes this would help to confirm that these inspection personnel 
read and understand English.
    Section 145.155(a)(2) currently has the word ``and'' at the end of 
the section. This is an error as there is no Sec.  145.155(a)(3). This 
error would not be carried over to proposed Sec.  145.1155(a)(2) as the 
subsequent proposed Sec.  145.1155(b) stands alone.
m. Personnel Authorized To Approve an Article for Return To Service 
(Current Sec.  145.157/Proposed Sec.  145.1157)
    Section 145.157 sets forth the experience requirements for the 
person authorized to approve an article for return to service. Section 
145.157(a) requires each person authorized to approve an article for 
return to service employed by a repair station located inside the 
United States to be certificated under part 65. For the reasons 
discussed above under proposed Sec.  145.1153, the FAA is proposing in 
Sec.  145.1157(b) that each person authorized to approve an article for 
return to service be appropriately certificated under part 65. The 
appropriateness of the certificate is based in the privilege of the 
mechanic or repairman certificate issued under part 65 subpart D or E.
    Currently, Sec.  145.157(b) contains a different set of 
qualifications for a person authorized to approve an article for return 
to service employed by a repair station located outside the United 
States. To harmonize these two dissimilar standards as much as 
possible, the FAA is proposing in Sec.  145.1157(c) to require those 
persons employed by a repair station located outside the United States 
to meet either the certificate requirements of proposed Sec.  
145.1157(a) or the eligibility requirements of Sec.  65.101(a)(1), (2), 
(3) and (5).
    Section 145.157(c) requires that a repair station ensure that each 
person authorized to approve an article for return to service 
understands, reads, and writes English. For the reasons discussed 
above, the FAA is proposing in Sec.  145.1157(d) that these persons 
also be able to speak English.
    Finally, the FAA believes the requirements in current Sec.  145.157 
are set forth in a cumbersome manner. Therefore, the FAA is proposing 
to rearrange these requirements in proposed Sec.  145.1157.
n. Records of Management, Supervisory, and Inspection Personnel 
(Current Sec.  145.161/Proposed Sec.  145.1161)
    Section 145.161 sets forth the management, supervisory, and 
inspection personnel records that a repair station must maintain and 
make available to the FAA.
    Section 145.161(a)(3) requires each repair station to maintain a 
roster of personnel authorized to sign a maintenance release for 
approving a maintained or altered article for return to service. To be 
consistent with the use of the term approval for return to service in 
Sec. Sec.  43.5 and 43.7, and to eliminate confusion arising from the 
use of ``maintenance release for approving an article,'' the FAA is 
proposing to change this requirement to a roster of personnel 
authorized to approve for return to service a maintained or altered 
article (see proposed Sec.  145.1161(a)(3)).
    Section 145.161(a)(4) requires each repair station to maintain a 
summary of specified information on the employees listed in the rosters 
required by Sec. Sec.  145.161(a)(1) through (a)(3). Section 
145.161(a)(4)(iii) requires this summary to include past relevant 
employment with names of employers and periods of employment. The FAA 
is proposing in Sec.  145.1161(a)(4)(iii) to require that past 
positions and types of maintenance performed be included in this 
format. This would confirm the relevancy of the listed past employment.
o. Training Requirements (Current Sec.  145.163/Proposed Sec.  
145.1163)
    Section 145.163 contains the requirements for a repair station's 
employee training program. The FAA is proposing in Sec.  145.1163(a) to 
delete the implementation date requirements of Sec.  145.163(a) as this 
is no longer applicable.
    The FAA is also proposing that the training program requirements in 
Sec.  145.163(b) be revised in proposed Sec.  145.1163(b). Currently, 
the training program must ensure that each employee assigned to perform 
maintenance, preventive maintenance, or alterations, and inspection 
functions is capable of performing the assigned task. The FAA believes 
that the current requirement is too broad and lacks specific elements. 
Training in human factors, federal regulations, and repair station 
manuals, procedures, and forms are minimum subject areas that should be 
covered in all training programs submitted for approval. Therefore, the 
FAA is proposing in Sec.  145.1163(b) to require that the training 
program ensure that employees who perform maintenance, preventive 
maintenance, and alterations be (1) capable of performing the assigned 
task, (2) trained in human factors relevant to aviation maintenance, 
(3) trained in the Federal Aviation Regulations as they relate to Part 
145, and (4) trained in the repair station's manuals, procedures, and 
forms.
    The FAA is also proposing clarifying changes to Sec.  145.163(d) in 
proposed Sec.  145.1163(d) resulting in the removal of a repetitive 
``to its''.
p. Hazardous Materials Training (Current Sec.  145.165/Proposed Sec.  
145.1165)
    Section 145.165 sets forth the requirements for a repair station's 
employee hazardous materials training program.
    Section 145.165(b) sets forth the job functions that an employee 
may not perform or directly supervise without having received 
appropriate hazardous materials training. Over the years, the

[[Page 30071]]

FAA has found that the phrase ``may not'' has not been interpreted as a 
complete prohibition of the action to which it is linked. To correct 
this ambiguity, the FAA is proposing in Sec.  145.1165(b) to change the 
phrase ``may not'' to ``shall not.''
q. Privileges and Limitations of Certificate (Current Sec.  145.201/
Proposed Sec.  145.1201)
    Section 145.201 sets forth the privileges and limitations 
associated with a repair station certificate.
    Section 145.201(a)(2) allows a repair station to arrange with 
another person to perform the work for which the repair station is 
rated. It also contains certain requirements if that person is not 
certificated under part 145. The FAA is proposing in Sec.  145.1201 to 
clarify that if a repair station arranges for another person to perform 
work for the repair station it must comply with proposed Sec.  145.1217 
(Contract Maintenance). This would clarify the authority of the repair 
station to contract maintenance to another person and the 
responsibility it has if it chooses to do so.
    The current limitation in Sec.  145.201(b) providing that a repair 
station may not maintain or alter any article for which it is not rated 
has caused confusion concerning the responsibilities of repair stations 
and their oversight by the FAA. Part 145 contains the rules repair 
stations must follow when working on articles to which part 43 applies, 
yet Sec.  145.201(b) is drafted broadly and would seem to prohibit work 
on articles not governed by part 43. Rather than proposing an amendment 
that would explain in the text of the paragraph that the prohibition 
applies only to articles governed by part 43, the FAA proposes to 
clarify the issue by combining the text currently in Sec. Sec.  
145.201(b) and (c) into proposed Sec.  145.1201(b). This would provide 
a single list of when a repair station may not approve an article for 
return to service.
r. Repair Station Manual (Current Sec.  145.207/Proposed Sec.  
145.1207)
    Section 145.207 contains the requirement for a repair station 
manual and sets forth a repair station's obligations for making its 
manual accessible to its personnel and providing current copies to its 
FAA district office, while Section 145.211 contains the requirement for 
a quality control manual. For readability and to eliminate repetition, 
the FAA is proposing in Sec.  145.1207 to address similar requirements 
for each manual in a combined introductory section. The FAA will also 
simplify the listing of manual requirements by removing the repeated 
preliminary term ``A certificated repair station must * * *'' currently 
in each paragraph of Sec.  145.207. The FAA also proposes to add an 
introductory statement ``A certificated repair station must:''. To 
recognize the combined introduction, section 145.1207 is titled Repair 
Station and Quality Control Manuals.
s. Repair Station Manual Contents (Current Sec.  145.209/Proposed Sec.  
145.1209)
    The content requirements for a repair station's manual are 
currently located in Sec.  145.209. Of the 11 listed paragraphs, seven 
require listing procedures and three require descriptions. The FAA is 
proposing to consolidate and re-sequence the requirements in Sec.  
145.209(b), (c) and (d) and include updated references in proposed 
Sec.  145.1209. This consolidation would eliminate repetitive terms 
(``Procedures for'' and ``A description of''), reduce the number of 
paragraphs from eleven to five, and require a resequencing.
    The FAA is also proposing to revise the text currently in Sec.  
145.209(d)(1) in proposed Sec.  145.1209(d)(1) to add procedural 
requirements to the repair station manual for FAA approval of 
capability list changes when self-evaluation is not authorized. 
Proposed Sec.  145.1209(d)(2) would also be revised to include what 
would be expected of a repair station when performing a self-
evaluation.
    Finally, the FAA is proposing to add a requirement in Sec.  
145.1209(d)(2)(iv) that repair stations retain documentation of the 
self-evaluation for two years.
t. Quality Control System (Current Sec.  145.211/Proposed Sec.  
145.1211)
    This section would remain essentially unchanged, with the exception 
of adding requirements for suspected unapproved parts and ensuring 
maintenance not completed as a result of shift change or similar 
interruption is properly completed.
u. Inspection of Maintenance, Preventive Maintenance, or Alterations 
(Current Sec.  145.213/Proposed Sec.  145.1213)
    Section 145.213(d) states that only an employee certificated under 
part 65 is authorized to sign off on final inspections and maintenance 
releases for the repair stations. The FAA is proposing to remove this 
paragraph in proposed Sec.  145.1213 as it is repetitive and conflicts 
with the requirements of proposed Sec.  145.1157. The FAA is also 
proposing to remove the term ``maintenance release'' from proposed 
Sec.  145.1213 to be consistent with part 43.
v. Recordkeeping (Current Sec.  145.219/Proposed Sec.  145.1219)
    Section 145.219 sets forth the recordkeeping requirements for a 
repair station. Section 145.219(b) requires a repair station to provide 
a copy of the maintenance release to the owner or operator of the 
article on which the work was performed. To be consistent with Sec.  
43.5 (Approval for return to service after maintenance, preventive 
maintenance, rebuilding, or alteration) and Sec.  43.7 (Persons 
authorized to approve aircraft, airframes, aircraft engines, 
propellers, appliances, or component parts for return to service after 
maintenance, preventive maintenance, rebuilding, or alteration), the 
FAA is proposing in Sec.  145.1219 to replace the term ``maintenance 
release'' with ``approval for return to service.''
w. Consistency Changes in Parts 43 and 91
    Based on the above proposals, we are also proposing changes to the 
following sections in parts 43 and 91: Appendix B of part 43, Sec.  
91.171, Sec.  91.319, Sec.  91.327, Sec.  91.411, Sec.  91.413, and 
Appendix A to Part 91. These sections/appendices currently reference 
some element of a repair station's operations that would be changed 
based on the proposals in this document. As such, these sections/
appendices would need to be modified to be consistent with such 
proposals.

III. Regulatory Evaluation, Regulatory Flexibility Determination, 
International Trade Impact Assessment, and Unfunded Mandates Assessment

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 and Executive Order 13563 direct 
that each Federal agency shall propose or adopt a regulation only upon 
a reasoned determination that the benefits of the intended regulation 
justify its costs. Second, the Regulatory Flexibility Act of 1980 (Pub. 
L. 96-354) requires agencies to analyze the economic impact of 
regulatory changes on small entities. Third, the Trade Agreements Act 
(Pub. L. 96-39) prohibits agencies from setting standards that create 
unnecessary obstacles to the foreign commerce of the United States. In 
developing U.S. standards, this Trade Act requires agencies to consider 
international standards and, where appropriate, that they be the basis 
of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4) requires agencies to prepare a written assessment of 
the costs, benefits, and other effects of proposed or final rules that 
include a Federal mandate

[[Page 30072]]

likely to result in the expenditure by State, local, or tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more annually (adjusted for inflation with the base year of 
1995). This portion of the preamble summarizes the FAA's analysis of 
the economic impacts of this proposed rule.
    In conducting these analyses, FAA has determined that this proposed 
rule: (1) Has benefits that justify its costs, (2) is not an 
economically ``significant regulatory action'' as defined in section 
3(f) of Executive Order 12866, (3) is ``significant'' as defined in 
DOT's Regulatory Policies and Procedures; (4) would not have a 
significant economic impact on a substantial number of small entities; 
(5) would not create unnecessary obstacles to the foreign commerce of 
the United States; and (6) would not impose an unfunded mandate on 
state, local, or tribal governments, or on the private sector by 
exceeding the threshold identified above. These analyses are summarized 
as follows.

Who Is Potentially Affected by This Proposed Rule

    There are 4,105 repair stations in the United States and 739 repair 
stations in 64 foreign countries that the FAA has certificated to work 
on N-registered airplanes. For purposes of this analysis, of those 
4,105 repair stations, 1,838 are defined to be ``small'' with 10 or 
fewer employees, 1,913 are defined to be ``medium-sized'' with between 
11 and 199 employees, and 354 are defined to be ``large'' with 200 or 
more employees. The FAA also forecasts that 106 repair stations in the 
United States will annually seek to be certified by the FAA. Finally, 
although this proposed rule would also affect existing and future 
repair stations in foreign countries, Executive Order 12866 requires 
the FAA to analyze the economic impacts of this proposed rule only on 
repair stations located in the United States.

Total Benefits and Costs of This Rule

    The total costs of this proposal would be relatively small ($14.493 
million over a 10-year period, spread amongst approximately 5,000 
repair stations), but it is difficult to quantify the benefits. We 
believe, however, that the potential benefits, which derive in part 
from (1) Giving the FAA authority to (a) deny a repair station 
certificate to an applicant whose past performance resulted in a 
revocation, and (b) revoke all FAA-issued certificates held by any 
person who makes fraudulent or intentionally false entries or records; 
(2) defining what operations specifications are and providing a well-
defined process for both industry and the FAA to amend them; and (3) 
updating the ratings system, justify the costs of the proposed rule.
    The current rule provides that, with certain unrelated 
restrictions, an applicant who meets the requirements of the rule is 
entitled to a repair station certificate regardless of a past 
regulatory non-compliance history, no matter how egregious. Currently 
an applicant, based on a successful showing of meeting the minimum 
requirements for a certificate (e.g., the personnel, housing, 
facilities, equipment, materials, and data) is entitled to a 
certificate regardless of past negative performance, such as multiple 
rule violations or having a certificate revoked. This entitlement 
provides no latitude to the FAA. Based on a fatal accident that likely 
would not have occurred if the FAA had a mechanism in place to deny a 
certificate to a ``bad actor,'' the National Transportation Safety 
Board (NTSB) identified this entitlement as a potential safety issue, 
and the FAA agrees.
    The FAA is aware of instances where persons whose repair station 
certificates were revoked continued to operate by obtaining new repair 
station certificates shortly after the revocation process. In one of 
these situations, a key management official with decision-making 
authority (chief inspector) from a repair station that lost its 
certificate for serious maintenance-related violations applied for and 
received a new repair station certificate. That individual also became 
the chief inspector at the newly-certificated repair station. While 
under the chief inspector's direction, employees of the newly-
certificated station performed improper maintenance on a number of 
propellers, one of which came apart in flight causing a fatal accident.
    As a result of this accident, the National Transportation Safety 
Board (NTSB), in a Safety Recommendation dated February 9, 2004 (A-04-
01 and A-04-02), expressed concern that the FAA did not have a 
mechanism for preventing individuals who were associated with a 
previously revoked repair station, such as the owner described above, 
from continuing to operate through a new repair station. The NTSB noted 
that the FAA has such a mechanism in place for air carriers and other 
commercial operators. Section 119.39(b) allows the FAA to deny an 
application for a Part 121 or 135 air carrier or operating certificate. 
This can occur if the applicant previously held a certificate that was 
revoked or if a person who exercised control over (or held a key 
management position in) a previously revoked operator will be 
exercising control over (or hold a key management position in) the new 
operator.
    With total present-value costs over a ten year period of $13.045 
million, this rule would be cost-beneficial if it prevents at least 
three fatalities over 10 years. This benefit could accrue from 
preventing one or more fatal accidents during the ten-year period, 
depending on the number of persons who would have been on board. The 
FAA believes that one or more such accidents are likely to occur during 
that period and this rule is necessary to prevent them. If this 
proposed provision had been in place prior to the accident described 
above, the FAA would have denied the repair station certificate 
application, and the faulty propeller maintenance would not have 
occurred--thus, neither would the accident.
    In concurrence with an NTSB recommendation, the proposed rule would 
change this entitlement to an eligibility that will provide the FAA the 
ability to deny a certificate application based on enforcement history, 
as is currently the case with air carrier applicants. Also, a repair 
station certificate is effective until surrendered, suspended, or 
revoked. A repair station under investigation could potentially 
surrender a certificate to terminate an ongoing investigation resulting 
in a lack of enforcement history. The NTSB recommended, and the FAA 
agrees, that a repair station should not be able to force the FAA to 
terminate an investigation by surrendering a certificate which would 
result in a lack of enforcement history. This history would be 
important evidence to support the agency's denying a certificate under 
the previously described circumstances. In concurrence with the NTSB 
recommendation, the proposed rule would specify that a certificate 
surrender is not valid until the FAA accepts the certificate. The costs 
of being able to deny certification to an applicant with a history of 
non-compliance is minimal, but the benefits are the potential avoidance 
of accidents, thereby increasing the safety of the flying public.
    We also believe the current ratings system, which dates to the 
1930's and 1940's, does not adequately address the way current aircraft 
are constructed and maintained. The current ratings system hampers the 
FAA's ability to appropriately rate repair stations, and it impedes 
repair stations' ability to accurately describe the work they perform. 
The repair station community and the FAA have struggled, and continue 
to struggle, with the

[[Page 30073]]

application of current technology and business practices in an 
antiquated rule. The proposed rule would accommodate current 
technologies and provide regulatory flexibility to accommodate future 
technological development. This would benefit the repair station 
community by applying modern, consistent, unambiguous terminology 
throughout the regulated industry.
    The proposed rule would also allow a repair station the option of 
either maintaining its current procedures in applying for a rating or 
providing the FAA with a capabilities list stating the products on 
which it can work. In recent years, some repair stations have preferred 
to develop a capabilities list, which can more efficiently be used to 
obtain FAA approvals for expanding product work. Repair stations would 
be allowed to use a capabilities list so long as the list follows the 
FAA format that would be developed. This format consistency would allow 
the FAA to more efficiently know exactly which repair stations are 
performing specific repairs. The FAA is unable to estimate this 
potential efficiency savings and requests data from the public on these 
benefits.
    The proposed rule would also allow a repair station the option of 
either maintaining its current procedures in applying for a rating or 
to supply the FAA with a capabilities list stating the products on 
which it can work. In recent years, some repair stations have preferred 
to develop a capabilities list, which can more efficiently be used to 
obtain FAA approvals for expanding product work. Repair stations would 
be allowed to use a capabilities list so long as the list follows the 
FAA format that would be developed. This format consistency would allow 
the FAA to more efficiently know exactly which repair stations are 
performing specific repairs. The FAA is unable to estimate this 
potential efficiency savings and requests data from the public.
    As seen in Table 1, during the 2011-2020 period of this analysis, 
the proposed rule would impose compliance costs of $14.493 million on 
existing and future repair stations, which have a present value of 
$13.045 million using a 7 percent discount rate and a present value of 
$13.836 million using a 3 percent discount rate.

                   Table 1--Total and Present Value Compliance Costs by US Repair Station Size
                                                   [2011-2020]
                                           [Millions of 2010 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 Compliance costs
                                                     Number of   -----------------------------------------------
   Repair station size  (Number of employees)         repair                               Present value
                                                     stations    -----------------------------------------------
                                                                       Total         7 Percent       3 Percent
----------------------------------------------------------------------------------------------------------------
Small (1-10)....................................           1,838          $1.949          $1.738          $1.852
Medium (11-199).................................           1,913           5.226           4.699           4.987
Large (200+)....................................             354           7.318           6.608           6.997
                                                 ---------------------------------------------------------------
    Total.......................................           4,105          14.493          13.045          13.836
----------------------------------------------------------------------------------------------------------------

    As seen in Table 2, the FAA estimates that the average one-time 
compliance cost would be $1,146 for a small repair station, $2,848 for 
a medium-sized repair station, and $21,474 for a large repair station.

   Table 2--Average One-Time Compliance Costs For a Repair Station by
                           Repair Station Size
                               [2011-2020]
------------------------------------------------------------------------
                    Repair station size                        One-time
------------------------------------------------------------------------
Small......................................................       $1,146
Medium.....................................................        2,848
Large......................................................       21,474
------------------------------------------------------------------------

    Consequently, in light of the propeller accident and the NTSB 
recommendation based on it, the FAA believes that the proposed rule's 
potential benefits would be greater than its potential compliance costs 
if it prevented an accident with at least three fatalities during the 
next ten years.

Cost Assumptions and Sources of Information

     Discount rates--7% and 3%.
     Period of analysis--2011-2020.
     Monetary values expressed in 2010 dollars.

Costs of This Rulemaking

    The proposed rule would impose compliance costs on repair stations 
to
    1. Apply for a rating; and
    2. Revise their manuals.
    As seen in Table 3, the estimated total compliance costs of the 
proposed repair station manual revision ($12.869 million) would be 
approximately 88 percent of the total compliance costs.

  Table 3--Summary of Total and Present Values of the Compliance Costs by Provision and by Repair Station Size
                                                   [2011-2020]
                                           [Millions of 2010 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 Compliance costs
                                                                 -----------------------------------------------
                            Provision                                                      Present value
                                                                 -----------------------------------------------
                                                                       Total         7 Percent       3 Percent
----------------------------------------------------------------------------------------------------------------
Rating System Application.......................................          $1.624          $1.412          $1.524
Repair Station Manual Revision..................................          12.869          11.633          12.312
                                                                 -----------------------------------------------

[[Page 30074]]

 
    Total.......................................................          14.493          13.045          13.836
----------------------------------------------------------------------------------------------------------------

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation. To achieve this principle, agencies are required 
to solicit and consider flexible regulatory proposals and to explain 
the rationale for their actions to assure that such proposals are given 
serious consideration.'' The RFA 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 rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to 
have a significant economic impact on a substantial number of small 
entities, section 605(b) of the RFA provides that the head of the 
agency may so certify and a regulatory flexibility analysis is not 
required. The certification must include a statement providing the 
factual basis for this determination, and the reasoning should be 
clear.
    The FAA believes that this proposed rule would not have a 
significant impact on a substantial number of small entities for the 
following reason:
    The Small Business Administration classifies ``small'' entities 
based on either employment or annual revenue. For this proposed rule, a 
small entity is defined as ``Other Support Activities for Air 
Transportation'' (North American Industrial Classification System 
488190) with revenues of $7 million or less. Revenue data compiled by 
Dun and Bradstreet indicates that of the repair stations for which data 
are available, 2,354 repair stations have revenues of $7 million or 
less and that the average revenue per small entity is $1,272,500. The 
initial compliance cost to a small repair station would average about 
$4,000. This cost would be less than one percent of the average annual 
revenue and less than two percent of the annual revenue for firms that 
earn more than $200,000.
    Therefore, the FAA certifies that this proposed rule would not have 
a significant economic impact on a substantial number of small 
entities. The FAA solicits comments regarding this determination.

Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) 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 an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $143.1 million in lieu of $100 
million. This proposed rule does not contain such a mandate; therefore, 
the requirements of Title II of the Act do not apply.

International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing standards or engaging in related activities 
that create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety, and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards. The FAA has 
assessed the potential effect of this proposed rule and determined that 
it would ensure the safety of the American public and does not exclude 
foreign repair stations that meet this objective. As a result, this 
rule is not considered as creating an unnecessary obstacle to foreign 
commerce.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. According to the 1995 
amendments to the Paperwork Reduction Act (5 CFR 1320.8(b)(2)(vi)), an 
agency may not collect or sponsor the collection of information, nor 
may it impose an information collection requirement unless it displays 
a currently valid Office of Management and Budget (OMB) control number.
    This proposal contains a revision of a currently approved 
collection (OMB-2120-0682) subject to review by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3507(d)). The title, description, and number of respondents, 
frequency of the collection, and estimate of the annual total reporting 
and recordkeeping burden are shown below:
    Title: Repair Stations (14 CFR part 145).
    Summary: Part 145 describes how to obtain a repair station 
certificate. The 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.
    Use: Specifically, the information is required from applicants who 
wish repair station certification. Applicants

[[Page 30075]]

must submit the required data to the appropriate FAA District Office 
for review and acceptance/approval. If the information is satisfactory, 
an onsite inspection is conducted. When all Part 145 requirements are 
met an air agency certificate and repair station operations 
specifications with appropriate ratings and limitations is issued.
    Part 145 is being updated and revised. The action is necessary 
because many portions of the current regulations do not reflect current 
repair station business practices, aircraft maintenance practices, or 
advances in aircraft technology.
    Respondents: There are 3,704 repair stations.
    Frequency: The FAA expects this to be a one-time burden on the 
affected public.
    Annual Burden Estimate:
     Estimated average burden per employee: $31 for a One-Time 
Collection.
     Estimated Annual Burden Hours: 0 Hours.
     Estimated Annual Burden Costs: $0.
    The agency is soliciting comments to:
    (1) Evaluate whether the proposed information requirement is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of collecting information on those who are 
to respond, including by using appropriate, automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Individuals and organizations may send comments on the information 
collection requirement to the address listed in the ADDRESSES section 
at the beginning of this preamble by August 20, 2012. Comments also 
should be submitted to the Office of Management and Budget, Office of 
Information and Regulatory Affairs, Attention: Desk Officer for FAA, 
New Executive Building, Room 10202, 725 17th Street NW., Washington, DC 
20053.

IV. International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these proposed regulations.

Executive Order Determinations

A. Executive Order 13132, Federalism

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

B. Executive Order 13211, Regulations that Significantly Affect Energy 
Supply, Distribution, or Use

    The FAA has analyzed this NPRM under Executive Order 13211, Actions 
Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). We have determined that it is not 
a ``significant energy action'' under the executive order and it is not 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

Environmental Analysis

    FAA Order 1050.1E identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this proposed rulemaking action qualifies for the 
categorical exclusion identified in paragraph 312(d) and involves no 
extraordinary circumstances.

Additional Information

Comments Invited

    The FAA invites interested persons to participate in this 
rulemaking by submitting written comments, data, or views. We also 
invite comments relating to the economic, environmental, energy, or 
federalism impacts that might result from adopting the proposals in 
this document. The most helpful comments reference a specific portion 
of the proposal, explain the reason for any recommended change, and 
include supporting data. To ensure the docket does not contain 
duplicate comments, please send only one copy of written comments, or 
if you are filing comments electronically, please submit your comments 
only one time.
    We will file in the docket all comments we receive, as well as a 
report summarizing each substantive public contact with FAA personnel 
concerning this proposed rulemaking. Before acting on this proposal, we 
will consider all comments we receive on or before the closing date for 
comments. We will consider comments filed after the comment period has 
closed if it is possible to do so without incurring expense or delay. 
We may change this proposal in light of the comments we receive.

Proprietary or Confidential Business Information

    Do not file in the docket information that you consider to be 
proprietary or confidential business information. Send or deliver this 
information directly to the person identified in the FOR FURTHER 
INFORMATION CONTACT section of this document. You must mark the 
information that you consider proprietary or confidential. If you send 
the information on a disk or CD-ROM, mark the outside of the disk or 
CD-ROM and also identify electronically within the disk or CD-ROM the 
specific information that is proprietary or confidential.
    Under 14 CFR 11.35(b), when we are aware of proprietary information 
filed with a comment, we do not place it in the docket. We hold it in a 
separate file to which the public does not have access, and we place a 
note in the docket that we have received it. If we receive a request to 
examine or copy this information, we treat it as any other request 
under the Freedom of Information Act (5 U.S.C. 552). We process such a 
request under the DOT procedures found in 49 CFR part 7.

Availability of Rulemaking Documents

    You can get an electronic copy of rulemaking documents using the 
Internet by--
    1. Searching the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies or
    3. Accessing the Government Printing Office's Web page at http://www.gpo.gov/fdsys/.
    You can also get a copy by sending 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 docket number or notice number of this rulemaking.
    You may access all documents the FAA considered in developing this 
proposed rule, including economic analyses and technical reports, from 
the internet through the Federal eRulemaking Portal referenced in 
paragraph (1).

[[Page 30076]]

List of Subjects in 14 CFR Part 43

    Aircraft, Aviation safety.

List of Subjects in 14 CFR Part 91

    Aircraft, Airmen, Aviation safety, Reporting and recordkeeping 
requirements.

List of Subjects in 14 CFR Part 145

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

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration proposes to amend Chapter I of Title 14, Code of Federal 
Regulations, as follows:

PART 43--MAINTENANCE, PREVENTIVE MAINTENANCE, REBUILDING, AND 
ALTERATION

    1. The authority citation for part 43 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701, 44703, 44705, 44707, 
44711, 44713, 44717, 44725.

    2. Amend Appendix B by revising paragraph (b)(3) to read as 
follows:

Appendix B to Part 43--Recording of Major Repairs and Major Alterations

* * * * *
    (b) * * *
    (3) Give the aircraft owner an approval for return to service 
signed by an authorized representative of the repair station and 
incorporating the following information:
* * * * *

PART 91--GENERAL OPERATING AND FLIGHT RULES

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

    Authority:  49 U.S.C. 106(g), 1155, 40103, 40113, 40120, 44101, 
44111, 44701, 44704, 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).

    4. Amend Sec.  91.171 by revising paragraph (b)(1) to read as 
follows:


Sec.  91.171  VOR equipment check for IFR operations.

* * * * *
    (b) * * *
    (1) Use, at the airport of intended departure, an FAA-operated or 
approved test signal or a test signal radiated by an appropriately 
rated repair station or, outside the United States, a test signal 
operated or approved by an appropriate authority to check the VOR 
equipment (the maximum permissible indicated bearing error is plus or 
minus 4 degrees); or
* * * * *
    5. Amend Sec.  91.319 by revising paragraph (g)(1) to read as 
follows:


Sec.  91.319  Aircraft having experimental certificates: Operating 
limitations.

* * * * *
    (g) * * *
    (1) Been inspected by an appropriately certificated person in 
accordance with the operating limitations issued as part of the 
airworthiness certificate for that aircraft; or
* * * * *
    6. Amend Sec.  91.327 by revising paragraphs (b)(1) and (2) and 
(c)(1) to read as follows:


Sec.  91.327  Aircraft having a special airworthiness certificate in 
the light-sport category: Operating limitations.

* * * * *
    (b) * * *
    (1) The aircraft is maintained by an appropriately certificated 
person in accordance with the applicable provisions of part 43 of this 
chapter;
    (2) A condition inspection is performed once every 12 calendar 
months by an appropriately certificated person in accordance with the 
operating limitations issued as part of the airworthiness certificate 
for that aircraft;
* * * * *
    (c) * * *
    (1) Been inspected by an appropriately certificated person in 
accordance with the operating limitations issued as part of the 
airworthiness certificate for that aircraft and been approved for 
return to service in accordance with part 43 of this chapter; or
* * * * *
    7. Amend Sec.  91.409 by revising paragraph (d)(1) to read as 
follows:


Sec.  91.409  Inspections.

* * * * *
    (d) * * *
    (1) An appropriately certificated person or the manufacturer of the 
aircraft to supervise or conduct the progressive inspection.
* * * * *
    8. Amend Sec.  91.411 by revising paragraph (b)(2) to read as 
follows:


Sec.  91.411  Altimeter system and altitude reporting equipment tests 
and inspections.

* * * * *
    (b) * * *
    (2) An appropriately certificated person.
* * * * *
    9. Amend Sec.  91.413 by revising paragraph (c)(1) to read as 
follows:


Sec.  91.413  ATC transponder tests and inspections.

* * * * *
    (c) * * *
    (1) An appropriately certificated person.
* * * * *
    10. Amend Appendix A to part 91.413 by revising paragraph (b)(1) in 
section 4 as follows:

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

* * * * *
    4. Maintenance program
* * * * *
    (b) * * *
    (1) It must be performed by an appropriately certificated 
person.
* * * * *

PART 145--REPAIR STATIONS

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

    Authority:  49 U.S.C. 106(g), 40113, 44701-44702, 44707, 44709, 
44717.

    12. Revise Sec.  145.1 to read as follows:


Sec.  145.1  Applicability.

    Subparts A through E of this part:
    (a) Expire and are reserved on [the date 24 months after the 
effective date of the rule].
    (b) Apply to repair stations certificated prior to [the effective 
date of the rule] until such time as those repair stations apply for 
and are certificated under subparts F through J of this part, or [the 
date 24 months after the effective date of the rule] whichever occurs 
first.
    (c) Contain the rules a repair station certificated prior to [the 
effective date of the rule] 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 of this chapter applies, until such time as those repair 
stations must comply with subparts F through J of this part. It also 
applies to any person who holds out as an FAA-certified repair station 
certificate issued under this part.
    13. Amend Sec.  145.3 by revising the introductory text to read as 
follows:


Sec.  145.3  Definition of terms.

    For the purposes of subparts A through E, the following definitions 
apply:
* * * * *
    14. Section 145.12 is added to subpart A to read as follows:

[[Page 30077]]

Sec.  145.12  Repair station records: Falsification, reproduction, or 
alteration.

    (a) No person may make or cause to be made:
    (1) Any fraudulent or intentionally false entry in any record or 
report (including any application for a repair station certificate or 
rating) that is required to be made, kept, or used to show compliance 
with any requirement under this part;
    (2) Any reproduction, for fraudulent purpose, of any record or 
report (including any application for a repair station certificate or 
rating) under this part; or
    (3) Any alteration, for fraudulent purpose, of any record or report 
(including any application for a repair station certificate or rating) 
under this part.
    (b) The commission by any person of an act prohibited under 
paragraph (a) of this section is a basis for suspending or revoking the 
repair station certificate and any certificate, approval, or 
authorization issued by the FAA held by that person.
    15. Amend Sec.  145.51 by revising paragraphs (a) and (d) to read 
as follows:


Sec.  145.51  Application for certificate.

    (a) An application for a repair station certificate and rating must 
be made in accordance with Sec.  145.1051.
* * * * *
    (d) An application for an additional rating or amended repair 
station certificate must be made in accordance with Sec.  145.1051.
    16. Amend Sec.  145.53 by revising paragraph (a) to read as 
follows:


Sec.  145.53  Issue of certificate.

    (a) Except as provided in paragraph (b), (c), or (d) of this 
section, a person who meets the requirements of subparts A through E 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, until [the date 24 months 
after the effective date of the rule] at which time any certificate 
issued under the requirements of subparts A through E of this part is 
no longer valid.
* * * * *
    17. Amend Sec.  145.55 by revising paragraphs (a), (b) and (c)(1) 
to read as follows:


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, or [the date 
24 months after the effective date of the rule] whichever occurs first.
    (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, 
but no longer than [the date 24 months after the effective date of the 
rule]. The FAA may renew the certificate or rating for 24 months, but 
not beyond [the date 24 months after the effective date of the rule] if 
the repair station has operated in compliance with the applicable 
requirements of part 145 within the preceding certificate duration 
period.
    (c) * * *
    (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.  145.1051.
* * * * *
    18. Amend Sec.  145.57 by revising paragraphs (a) introductory text 
and (b) to read as follows:


Sec.  145.57  Amendment to or transfer of certificate.

    (a) The holder of a repair station certificate must apply for any 
voluntary change to its certificate in accordance with Sec.  145.1051. 
A change to the certificate must include certification in compliance 
with Sec.  145.53(c) or (d), if not previously submitted. A certificate 
change is necessary if the certificate holder--
* * * * *
    (b) If the holder of a repair station certificate sells or 
transfers its assets, the new owner must apply for certification in 
accordance with Sec.  145.1051.
    19. Amend Sec.  145.105 by revising paragraph (a) to read as 
follows:


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

    (a) A certificated repair station that makes 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 must comply with Sec.  
145.1051.
* * * * *
    20. Amend part 145 by adding new subpart F to read as follows:
Subpart F--General
145.1001 Applicability.
145.1003 Definition of terms.
145.1005 Certificate and operations specifications requirements.
145.1012 Repair station records: Falsification, reproduction, or 
alteration.

Subpart F--General


Sec.  145.1001  Applicability.

    Subparts F through J of this part:
    (a) Describe how to obtain a repair station certificate after 
[effective date of rule].
    (b) Contain the rules a repair station receiving a certificate must 
follow related to its performance of maintenance, preventive 
maintenance, and alterations of civil aircraft, airframes, aircraft 
engines, propellers, appliances, or component parts to which part 43 of 
this chapter applies.
    (c) Apply to any person who holds out as an FAA-certificated repair 
station.


Sec.  145.1003  Definition of terms.

    For the purposes of subparts F through J 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 serves as the primary contact with the FAA.
    (b) Article means an aircraft, airframe, aircraft engine, 
propeller, appliance, or component part.
    (c) Avionics are articles generally associated with the processing 
of digital electrical signals. Examples include: radios, navigation 
equipment, radar, data processors, and cathode ray tubes.
    (d) 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 readily available 
for consultation on matters requiring instruction or decision from 
higher authority.
    (e) Line maintenance means maintenance performed for an air carrier 
certificated under part 121 or part 135 of this chapter, or a foreign 
air carrier or foreign person operating a U.S.-registered aircraft in 
common carriage under part 129 of this chapter, which is generally 
performed at the ramp, parking area, or gate, and typically will not 
exceed 24 continuous hours per aircraft.

[[Page 30078]]

Sec.  145.1005  Certificate and operations specifications requirements.

    (a) No person may operate as a certificated repair station without, 
or in violation of, a repair station certificate, rating, 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.


Sec.  145.1012  Repair station records: Falsification, reproduction, or 
alteration.

    (a) No person may make or cause to be made:
    (1) Any fraudulent or intentionally false entry in any record or 
report (including any application for a repair station certificate or 
rating) that is required to be made, kept, or used to show compliance 
with any requirement under this part;
    (2) Any reproduction, for fraudulent purpose, of any record or 
report (including any application for a repair station certificate or 
rating) under this part; or
    (3) Any alteration, for fraudulent purpose, of any record or report 
(including any application for a repair station certificate or rating) 
under this part.
    (b) The commission by any person of an act prohibited under 
paragraph (a) of this section is a basis for suspending or revoking the 
repair station certificate and any certificate, approval, or 
authorization issued by the FAA held by that person.
    21. Amend part 145 by adding new subpart G to read as follows:
Subpart G--Certification
145.1051 Application for certificate.
145.1053 Issue of certificate.
145.1055 Duration and renewal of certificate.
145.1056 Amendment to or transfer of certificate.
145.1057 Operations specifications.
145.1058 Amending operations specifications.
145.1059 Ratings.
145.1061 Limitations to ratings.

Subpart G--Certification


Sec.  145.1051  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) For initial applicants, a letter of compliance detailing how 
the applicant will comply with all sections of this part.
    (2) A repair station manual acceptable to the FAA as required by 
Sec.  145.1207;
    (3) A quality control manual acceptable to the FAA as required by 
Sec.  145.1207 (the repair station and quality control manuals may be 
contained in the same document if they are clearly identified);
    (4) A list that includes each product or article for which the 
application is made, as defined in the rating system identified in 
Sec.  145.1059.
    (5) An organizational chart of the repair station with the names 
and titles of managing and supervisory personnel;
    (6) The physical address and a description of all the repair 
station housing and facilities, including any additional fixed 
locations requested for approval in accordance with Sec.  145.1103(d).
    (7) A list of the maintenance functions, for approval by the FAA, 
to be performed for the repair station under contract by another person 
under the provisions of Sec.  145.1217; and
    (8) A description of the training program for approval by the FAA 
in accordance with Sec.  145.1163.
    (b) The technical data, housing, facilities, equipment, tools, test 
apparatus, materials, and personnel 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.
    (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 or articles for use on U.S.-registered 
aircraft, or
    (ii) Foreign-registered aircraft operated under the provisions of 
part 121 or part 135 of this chapter, or articles for use on those 
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 should include only 
that information necessary to substantiate the change or renewal of the 
certificate.
    (e) An application for a repair station certificate may be denied 
if the FAA finds that:
    (1) The applicant holds a repair station certificate in the process 
of being revoked, or previously held a repair station certificate that 
was revoked;
    (2) The applicant intends to fill or fills a management position 
with an individual who exercised control over or who held the same or a 
similar position with a certificate holder whose repair station 
certificate was revoked, or is in the process of being revoked, and 
that individual materially contributed to the circumstances causing the 
revocation or causing the revocation process;
    (3) An individual who will hold a management position previously 
held a management position with a certificate holder whose repair 
station certificate was revoked, or is in the process of being revoked, 
and the individual materially contributed to the circumstances causing 
the revocation or causing the revocation process; or
    (4) An individual who will have control over or substantial 
ownership interest in the applicant had the same or similar control or 
interest in a certificate holder whose repair station certificate was 
revoked, or is in the process of being revoked, and that individual 
materially contributed to the circumstances causing the revocation or 
causing the revocation process.


Sec.  145.1053  Issue of certificate.

    (a) A person who meets the requirements of this part is eligible to 
be issued 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 or an authority 
acceptable to the FAA. This certification must be made in accordance 
with implementation procedures signed by the FAA or the FAA's designee.
    (c) Before an air agency certificate can be issued for a repair 
station that is located within the United States, the applicant shall 
certify in writing that all hazmat employees (as defined in 49 CFR 
171.8) for the repair station, its contractors, or subcontractors are 
trained as required in 49 CFR part 172, subpart H.
    (d) Before an air agency certificate can be issued for a repair 
station located outside the United States, the applicant shall certify 
in writing that all employees for the repair station, its contractors, 
or subcontractors performing a job function concerning the transport of 
dangerous goods

[[Page 30079]]

(hazardous material) are trained as outlined in the most current 
edition of the International Civil Aviation Organization Technical 
Instructions for the Safe Transport of Dangerous Goods by Air.


Sec.  145.1055  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 the certificate and the FAA accepts it for 
cancellation, 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 and the FAA accepts it for 
cancellation, 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.  145.1051;
    (2) Send its request for renewal to the FAA office that has 
jurisdiction over the certificated repair station; and
    (3) Show that the fee prescribed by the FAA has been paid.
    (d) The holder of an expired, surrendered, suspended, or revoked 
certificate must return it to the FAA.


Sec.  145.1056  Amendment to or transfer of certificate.

    (a) An application to amend a repair station certificate must be 
made to the certificate-holding district office in a form and manner 
acceptable to the FAA. The request must meet the certification 
requirements of Sec.  145.1051(d) and the statement required by Sec.  
145.1053(c) or (d) must be included, if not previously submitted.
    (b) The certificate holder must file the application made under 
paragraph (a) of this section with the certificate holding district 
office at least 15 days before the date proposed by the applicant for 
the amendment to become effective, unless the FAA accepts filing within 
a shorter period.
    (c) A certificate amendment is necessary if the certificate holder 
changes the location of the repair station or requests to add or amend 
a rating.
    (d) 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.  145.1051.


Sec.  145.1057  Operations specifications.

    (a) Except for operations specifications paragraphs specifying 
ratings and limitations to those ratings, operations specifications are 
not part of a certificate.
    (b) Operations specifications issued under this part are effective 
as long as the repair station certificate is valid.
    (c) The operations specifications issued to a repair station must 
be available at the repair station for inspection by the public and the 
FAA at the address required by paragraph (d)(1) of this section.
    (d) Each certificate holder's operations specifications must 
contain--
    (1) The physical address of the certificate holder's fixed location 
for operation of the repair station. The address shall also serve as 
the address for mailed paper correspondence between the FAA and the 
certificate holder;
    (2) The ratings held and any limitations to those ratings;
    (3) Any special authorizations and limitations for the conduct of 
repair station operations;
    (4) Any exemption granted by the FAA to the repair station; and
    (5) Any other information the FAA determines is necessary.
    (e) If the optional capability list provided for in Sec.  145.1215 
is not used, each certificate holder's operations specifications must, 
within the rating categories authorized under Sec.  145.1059, identify 
each airframe, powerplant, or propeller by manufacturer, model, and 
series as applicable. For a Component rating, the operations 
specifications must identify each component or appliance included in 
the rating by manufacturer, manufacturer-designated nomenclature, and 
basic part number. For a Specialized Service rating, the operations 
specifications must identify each specific and unique maintenance 
function and the FAA acceptable specification associated with each 
function.


Sec.  145.1058  Amending operations specifications.

    (a) The FAA may amend any operations specifications issued under 
this part if--
    (1) The operations specification was issued erroneously;
    (2) The FAA revises the operations specifications template;
    (3) The FAA determines that safety in air commerce and the public 
interest require the amendment; or
    (4) The certificate holder applies for the amendment and the FAA 
determines that safety in air commerce and the public interest allows 
the amendment.
    (b) Except for an amendment involving a rating or a limitation to a 
rating, which would be considered a certificate action, and except as 
provided in paragraph (e) of this section for other amendments in which 
the certificate-holding district office finds that an emergency exists 
requiring immediate action, when the FAA initiates an amendment to a 
certificate holder's operations specifications, the following procedure 
applies:
    (1) The certificate-holding district office notifies the 
certificate holder in writing of the proposed amendment.
    (2) The certificate-holding district office sets a reasonable 
period (but not less than 7 days) within which the certificate holder 
may submit written information, views, and arguments on the amendment.
    (3) After considering the material presented, the certificate-
holding district office notifies the certificate holder of--
    (i) The adoption of the proposed amendment;
    (ii) The partial adoption of the proposed amendment; or
    (iii) The withdrawal of the proposed amendment.
    (4) If the certificate-holding district office issues an amendment 
to the operations specifications, it becomes effective not less than 30 
days after the certificate holder receives notice of it unless--
    (i) The certificate-holding district office finds under paragraph 
(e) of this section that an emergency exists requiring immediate action 
with respect to safety in air commerce; or
    (ii) The certificate holder petitions for reconsideration of the 
amendment under paragraph (d) of this section.
    (c) If the certificate holder applies for an amendment to its 
operations specifications, the following procedure applies:
    (1) The certificate holder must file an application to amend its 
operations specifications at least 15 days before the date proposed by 
the applicant for the amendment to become effective;
    (2) The application must be submitted to the certificate-holding 
district office in a form and manner prescribed by the FAA.

[[Page 30080]]

    (3) After considering the material presented, the certificate-
holding district office notifies the certificate holder of--
    (i) The adoption of the applied-for amendment;
    (ii) The partial adoption of the applied-for amendment; or
    (iii) The denial of the applied-for amendment. The certificate 
holder may petition for reconsideration of a denial under paragraph (d) 
of this section.
    (4) If the certificate-holding district office approves the 
amendment following coordination with the certificate holder regarding 
its implementation, the amendment is effective on the date the FAA 
approves it.
    (d) When a certificate holder seeks reconsideration of a decision 
from the certificate-holding district office concerning the amendment 
of operations specifications, the following procedure applies:
    (1) The certificate holder must petition for reconsideration of 
that decision within 30 days of the date that the certificate holder 
receives a notice of denial of the amendment to its operations 
specifications, or of the date it receives notice of an FAA-initiated 
amendment to its operations specifications, whichever circumstance 
applies.
    (2) The certificate holder must address its petition to the 
applicable Flight Standards Regional Division Manager.
    (3) A petition for reconsideration, if filed within the 30-day 
period, suspends the effectiveness of any amendment issued by the 
certificate-holding district office unless the certificate-holding 
district office has found, under paragraph (e) of this section, that an 
emergency exists requiring immediate action with respect to safety in 
air transportation or air commerce, in which case the amendment remains 
in effect during the appeal.
    (e) If the certificate-holding district office finds that an 
emergency exists requiring immediate action with respect to safety in 
air commerce that makes the procedures set out in paragraph (d) of this 
section impracticable or contrary to the public interest:
    (1) The certificate-holding district office amends the operations 
specifications and makes the amendment effective on the day the 
certificate holder receives notice of it.
    (2) In the notice to the certificate holder, the certificate-
holding district office articulates the reasons for its finding that an 
emergency exists requiring immediate action with respect to safety in 
air commerce that makes it impracticable or contrary to the public 
interest to stay the effectiveness of the amendment.


Sec.  145.1059  Ratings.

    (a) Airframe rating. The following categories are authorized under 
the airframe rating:
    (1) Category 1: Aircraft certificated under parts 23 and 27.
    (2) Category 2: Aircraft certificated under parts 25 and 29.
    (3) Category 3: All other aircraft.
    (i) A certificated repair station with an Airframe rating may 
perform maintenance, preventive maintenance, and alterations on 
airframes under the provisions listed on its operations specifications;
    (ii) A certificated repair station with an Airframe rating shall 
not perform maintenance, preventive maintenance, or alterations on 
those articles for which a Powerplant or Propeller rating is required, 
unless the repair station possesses the appropriate rating; and
    (iii) A certificated repair station with an Airframe rating is not 
required to obtain a separate Component rating to maintain articles 
associated with its rating and capabilities.
    (b) Powerplant rating. The following categories are authorized 
under the Powerplant rating:
    (1) Category 1: Reciprocating engines.
    (2) Category 2: Turbine engines.
    (3) Category 3: Auxiliary Power Units (APU).
    (4) Category 4: All other powerplants.
    (i) A certificated repair station with a Powerplant rating may 
perform maintenance, preventive maintenance, and alterations on 
powerplants and auxiliary power units under the provisions listed on 
its operations specifications;
    (ii) A certificated repair station with a Powerplant rating shall 
not perform maintenance, preventive maintenance, or alterations on 
those articles for which an Airframe or Propeller rating is required, 
unless the repair station possesses the appropriate rating; and
    (iii) A certificated repair station with a Powerplant rating is not 
required to obtain a separate Component rating to maintain articles 
associated with its rating and capabilities.
    (c) Propeller rating. The following categories are authorized under 
the Propeller rating:
    (1) Category 1: Fixed-pitch and ground-adjustable pitch propellers.
    (2) Category 2: Variable-pitch propellers.
    (3) Category 3: All other propellers.
    (i) A certificated repair station with a Propeller rating may 
perform maintenance, preventive maintenance, and alterations on 
propellers under the provisions listed on its operations 
specifications;
    (ii) A certificated repair station with a Propeller rating shall 
not perform maintenance, preventive maintenance, or alterations on 
those articles for which an Airframe or Powerplant rating is required, 
unless the repair station possesses the appropriate rating;
    and
    (iii) A certificated repair station with a Propeller rating is not 
required to obtain a separate Component rating to maintain articles 
associated with its rating and capabilities.
    (d) Component rating.
    (1) A certificated repair station with a Component rating may 
perform maintenance, preventive maintenance, and alterations on 
appliances and components that are not installed on an airframe, 
powerplant, or propeller under the provisions listed on its operations 
specifications.
    (2) A certificated repair station with a Component rating must have 
an Airframe, Powerplant, or Propeller rating with limitations in 
accordance with Sec.  145.1061 to install articles on those products.
    (e) Specialized Service rating.
    (1) The FAA may issue a Specialized Service rating to a 
certificated repair station that performs a specific and unique 
maintenance function.
    (2) The maintenance function must be performed in accordance with 
an FAA-acceptable specification.
    (3) The repair station's operations specifications must contain the 
specification used to perform the maintenance function. The 
specification may be:
    (i) A current industry or military specification acceptable to the 
FAA or,
    (ii) A specification developed by the applicant and approved by the 
FAA.
    (4) A certificated repair station may, under its Specialized 
Service rating, perform only the maintenance functions that are listed 
on the repair station's operations specifications.
    (5) A certificated repair station with a Specialized Service rating 
shall not contract out any maintenance function associated with that 
rating.


Sec.  145.1061  Limitations to ratings.

    (a) The FAA may issue limitations to the ratings of a certificated 
repair station for a particular type of airframe, powerplant, 
propeller, component, or specialized service that is listed on the 
repair station's operations specifications.
    (b) The repair station's operations specifications will identify 
the rating in Sec.  145.1059 to which the limitations apply.

[[Page 30081]]

    (c) Limitations to any rating in Sec.  145.1059 may be issued as 
deemed appropriate by the FAA, including, but not limited to, line 
maintenance.
    22. Amend part 145 by adding new subpart H to read as follows:
Subpart H-- Technical Data, Housing, Facilities, Equipment, and 
Materials
145.1101 General.
145.1103 Housing and facilities requirements.
145.1105 Change of location, housing, or facilities.
145.1107 Satellite repair stations.
145.1109 Technical data, equipment, tools, test apparatus, and 
materials requirements.

Subpart H--Technical Data, Housing, Facilities, Equipment, and 
Materials


Sec.  145.1101  General.

    A certificated repair station must provide the technical data, 
housing, facilities, equipment, tools, test apparatus, and materials 
that meet the applicable requirements for the issuance of the 
certificate and any rating the repair station holds.


Sec.  145.1103  Housing and facilities requirements.

    (a) Each certificated repair station must provide and maintain--
    (1) Suitable permanent housing for the facilities, equipment, 
materials, and personnel consistent with its ratings.
    (2) Facilities for properly performing the maintenance, preventive 
maintenance, and alterations of articles 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, 
and 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 alterations 
of 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 and protect 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, and alterations to the standards 
required by this part.
    (b) A certificated repair station with an airframe rating must 
provide and maintain suitable permanent housing with the ability to 
enclose the largest type and model of aircraft for which it is rated. 
Notwithstanding this requirement for suitable permanent housing, the 
FAA may determine that a repair station with limitations to its 
airframe rating does not need to have housing to enclose an entire 
aircraft if the FAA determines that adequate environmental protection 
is provided by the repair station consistent with the limitations 
issued in accordance with Sec.  145.1061.
    (c) A certificated repair station may perform maintenance, 
preventive maintenance, and alterations on articles outside of its 
housing if it provides suitable facilities that are acceptable to the 
FAA and meet the requirements of Sec.  145.1103(a) so the work can be 
performed in accordance with the requirements of part 43 of this 
chapter.
    (d) A certificated repair station may continually perform 
maintenance, preventive maintenance, and alterations on any article for 
which it is rated at additional fixed locations if the following 
requirements are met:
    (1) The repair station applies for and receives approval of 
additional fixed locations.
    (2) For a repair station located within the United States, the 
additional fixed location is within the geographical boundaries of the 
Certificate Holding District Office.
    (3) For a repair station located outside of the United States, the 
additional fixed location is within close proximity of the certificated 
repair station, as determined by the FAA.
    (4) The location is permanently affixed and is under the managerial 
control and authority of the repair station.
    (5) The maintenance functions performed at the additional fixed 
locations are in support of and within the scope of the ratings listed 
on the repair station's operations specifications.


Sec.  145.1105  Change of location, housing, or facilities.

    (a) A certificated repair station shall not change the location of 
its housing without written approval from the FAA.
    (b) A certificated repair station shall not make any changes to its 
housing or facilities required by Sec.  145.1103 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.  145.1107  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. Each satellite 
repair station must:
    (1) Meet the requirements for each rating it holds
    (2) Submit to its certificate holding district office the same 
manuals as the repair station that exercises managerial control. Each 
manual must identify any specific processes or procedures either unique 
to the satellite repair station or applicable only to the repair 
station with managerial control.
    (3) Submit to its certificate holding district office the same 
training program for approval as the repair station that exercises 
managerial control. The program must identify any specific processes or 
procedures either unique to the satellite repair station or applicable 
only to the repair station with managerial control.
    (4) Be able to demonstrate compliance with its manual.
    (5) Meet the housing and facility requirements of Sec.  145.1103.
    (6) Have its own housing and facilities in a location with a 
physical address other than the repair station with managerial control.
    (b) Unless the FAA indicates otherwise, personnel and equipment 
from a certificated repair station with managerial control and from 
each of its 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 approval for return to service is 
made. At other times, 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.  145.1109  Technical data, equipment, tools, test apparatus, and 
materials requirements.

    (a) Except as otherwise prescribed by the FAA, a certificated 
repair station must have and maintain the equipment, tools, test 
apparatus, materials, and, in

[[Page 30082]]

a format acceptable to the FAA, the technical data necessary to perform 
the maintenance, preventive maintenance, or alterations under its 
repair station certificate and operations specifications in accordance 
with part 43 of this chapter.
    (b) Notwithstanding the requirement in paragraph (a) of this 
section for a repair station to have the necessary equipment, tools, 
and test apparatus, that requirement may be met for specialized and 
rarely used equipment, tools, and test apparatus if the repair station 
can demonstrate to the FAA it has made arrangements with another person 
to make those items available to the repair station at any time their 
use is required.
    (c) A certificated repair station must ensure that all test and 
inspection equipment and tools used to make airworthiness 
determinations on articles are calibrated to a standard acceptable to 
the FAA.
    23. Amend part 145 by adding new subpart I to read as follows:
Subpart I--Personnel
145.1151 Personnel requirements.
145.1153 Supervisory personnel requirements.
145.1155 Inspection personnel requirements.
145.1157 Personnel authorized to approve an article for return to 
service.
145.1159 Recommendation of a person for certification as a 
repairman.
145.1161 Records of management, supervisory, and inspection 
personnel.
145.1163 Training requirements.
145.1165 Hazardous materials training.

Subpart Personnel


Sec.  145.1151  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, including 
work contracted to a noncertificated person in accordance with Sec.  
145.1217(b), is performed in accordance with part 43 of this chapter; 
and
    (d) Determine the abilities of its employees performing maintenance 
functions based on training, knowledge, experience, or practical tests.


Sec.  145.1153  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 
be present to oversee the work performed.
    (b) Each supervisor must--
    (1) If employed by a repair station located inside the United 
States, be appropriately certificated under part 65 of this chapter for 
the work being supervised.
    (2) If employed by a repair station located outside the United 
States-
    (i) Meet the requirements of paragraph (b)(1) of this section; or
    (ii) Meet the eligibility requirements of Sec.  65.101(a)(1), (2), 
(3) and (5) of this chapter.
    (c) A certificated repair station must ensure its supervisors 
understand, speak, read, and write English.


Sec.  145.1155  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.
    (b) A certificated repair station must ensure its inspectors 
understand, speak, read, and write English.
    (c) A certificated repair station must ensure that an inspector is 
available at the article while performing inspections.


Sec.  145.1157  Personnel authorized to approve an article for return 
to service.

    (a) Each person authorized to approve an article for return to 
service must be thoroughly familiar with the applicable regulations in 
this chapter and proficient in the use of the various applicable 
inspection methods, techniques, and practices.
    (b) A certificated repair station located inside the United States 
must ensure that each person authorized to approve an article for 
return to service is appropriately certificated under part 65 of this 
chapter for the work approved.
    (c) A certificated repair station located outside the United States 
must ensure that each person authorized to approve an article for 
return to service:
    (1) Is certificated as required by paragraph (b) of this section, 
or;
    (2) Meets the eligibility requirements of Sec.  65.101(a) (1), (2), 
(3) and (5) of this chapter.
    (d) A certificated repair station must ensure that each person 
authorized to approve an article for return to service understands, 
speaks, reads, and writes English.
    (e) A certificated repair station must ensure that a person 
authorized to approve an article for return to service is available to 
inspect the article any time such approval is made.


Sec.  145.1159  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 of this 
chapter.


Sec.  145.1161  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 approve for return to 
service a maintained or altered article.
    (4) A summary of the employment history 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, positions, and types of maintenance performed,
    (iv) Scope of present employment, and

[[Page 30083]]

    (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.  145.1163  Training requirements.

    (a) A certificated repair station must have an employee training 
program approved by the FAA that consists of initial and recurrent 
training.
    (b) The training program must ensure that each employee assigned to 
perform maintenance, preventive maintenance, alterations, or inspection 
functions is--
    (1) Capable of performing the assigned task;
    (2) Trained in human factors relevant to aviation maintenance;
    (3) Trained in the Federal Aviation Regulations as they relate to 
Part 145; and
    (4) Trained in the repair station's manuals, quality control 
program, procedures, and forms.
    (c) A certificated repair station must document, in a format 
acceptable to the FAA, the individual employee training required under 
this section. These records must be retained for a minimum of 2 years.
    (d) A certificated repair station must submit training program 
revisions to its certificate holding district office in accordance with 
the procedures in the repair station manual as required by Sec.  
145.1209(e)(2).


Sec.  145.1165  Hazardous materials training.

    (a) Each repair station that meets the definition of a hazmat 
employer under 49 CFR 171.8 must have a hazardous materials training 
program that meets the training requirements of 49 CFR part 172, 
subpart H.
    (b) A repair station employee shall not perform or directly 
supervise a job function listed in Sec.  121.1001 or Sec.  135.501 of 
this chapter for, or on behalf of the part 121 or 135 operator, 
including loading of items for transport on an aircraft operated by a 
part 121 or part 135 certificate holder, unless that person has 
received training in accordance with the part 121 or part 135 
operator's FAA-approved hazardous materials training program.
    24. Amend part 145 by adding new subpart J to read as follows:
Subpart J--Operating Rules
145.1201 Privileges and limitations of certificate.
145.1203 Work performed at another location.
145.1205 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.
145.1206 Notification of hazardous materials authorizations.
145.1207 Repair station and quality control manuals.
145.1209 Repair station manual contents.
145.1211 Quality control system.
145.1213 Inspection of maintenance, preventive maintenance, or 
alterations.
145.1215 Capability list
145.1217 Contract maintenance.
145.1219 Recordkeeping.
145.1221 Service difficulty reports.
145.1223 FAA inspections.

Subpart J--Operating Rules


Sec.  145.1201  Privileges and limitations of certificate.

    (a) A certificated repair station may--
    (1) Perform maintenance, preventive maintenance, or alterations in 
accordance with part 43 of this chapter on any article for which it is 
rated and within the limitations in its operations specifications.
    (2) In accordance with Sec.  145.1217, arrange for another person 
to perform maintenance, preventive maintenance, or alterations of any 
article for which it is rated.
    (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 of this chapter.
    (b) A certificated repair station shall not approve for return to 
service under part 43 of this chapter--
    (1) Any article for which it is not rated;
    (2) Any article for which it is rated if it requires special 
technical data, equipment, or facilities that are not available to it;
    (3) 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, and using methods, 
techniques, and practices acceptable to the FAA.
    (4) 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; or
    (5) Any experimental aircraft after a major repair or major 
alteration performed under Sec.  43.1(b) of this chapter unless the 
major repair or major alteration was performed in accordance with 
methods and applicable technical data acceptable to the FAA.


Sec.  145.1203  Work performed at another location.

    A certificated repair station may temporarily transport material, 
equipment, and personnel needed to perform maintenance, preventive 
maintenance, or alterations 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 authorized by the FAA to perform such work on a recurring 
basis, and the repair station's manual includes the procedures for 
accomplishing maintenance, preventive maintenance, or alterations at a 
place other than the repair station's fixed location.


Sec.  145.1205  Maintenance, preventive maintenance, and alterations 
performed for certificate holders under parts 121, 125, and 135, and 
for foreign air carriers or foreign persons operating 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 air 
operator under parts 121 or 135 of this chapter, or for a foreign air 
carrier or foreign person operating U.S.-registered aircraft in common 
carriage under part 129 of this chapter, shall perform that work in 
accordance with the instructions provided by that air carrier, air 
operator, or foreign air carrier or foreign person.
    (b) A certificated repair station that performs inspections on an 
aircraft that is subject to an inspection program under Sec.  91.409(e) 
or parts 125 or 135 of this chapter shall do that work in accordance 
with the inspection program provided by the operator of that aircraft.


Sec.  145.1206  Notification of hazardous materials authorizations.

    (a) Each repair station must acknowledge receipt of the part 121 or 
part 135 operator notification required under Sec. Sec.  121.1005(e) 
and 135.505(e) of this chapter prior to performing work for, or on 
behalf of, that certificate holder.
    (b) Prior to performing work for or on behalf of a part 121 or part 
135 operator, each repair station must notify its employees, 
contractors, or subcontractors that handle or replace aircraft 
components or other items regulated by 49 CFR parts 171 through 180 of 
each certificate holder's operations specifications authorization 
permitting, or prohibition against, carrying hazardous materials. This 
notification must be provided subsequent to the notification by the 
part 121 or part 135 operator of such

[[Page 30084]]

operations specifications authorization/designation.


Sec.  145.1207  Repair station and quality control manuals.

    A certificated repair station must:
    (a) Prepare and follow repair station and quality control manuals 
acceptable to the FAA;
    (b) Maintain current repair station and quality control manuals;
    (c) Ensure the manuals required by this section are accessible for 
use by repair station personnel;
    (d) Provide to its certificate holding district office the current 
manuals in a format acceptable to the FAA; and
    (e) Notify its certificate holding district office of each revision 
to its manuals in accordance with the procedures required by Sec. Sec.  
145.1209(e)(7) and 145.1211(c)(3).


Sec.  145.1209  Repair station manual contents.

    A certificated repair station's manual must include at least 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) A description of the certificated repair station's operations, 
including the technical data, housing, facilities, equipment, and 
materials as required by this part;
    (c) A description of--
    (1) The required records and the recordkeeping system used to 
obtain, store, and retrieve the required records; and
    (2) The system used to identify and control sections of the repair 
station manual.
    (d) Procedures for revising the capabilities list if used, 
including--
    (1) Submitting the revisions to the certificate holding district 
office for approval; or
    (2) The self-evaluation permitted under Sec.  145.1215(d)(2) for 
making changes to the capability list, including--
    (i) Determining that the repair station has all of the technical 
data, housing, facilities, equipment, material, processes, and trained 
personnel in place;
    (ii) Methods and frequency of such evaluations, including 
procedures for reporting the results to the appropriate repair station 
manager for review and action;
    (iii) Notifying the certificate holding district office of changes 
to the list, including how often the certificate holding district 
office will be notified of changes; and
    (iv) Documenting the self evaluation and periodic review, including 
making such documentation available to the FAA, and retaining it for a 
period of 2 years.
    (e) Procedures for--
    (1) Maintaining and revising the rosters required by Sec.  
145.1161;
    (2) Revising the training program required by Sec.  145.1163 and 
submitting revisions to the certificate holding district office for 
approval;
    (3) Governing work performed at another location in accordance with 
Sec.  145.1203;
    (4) Performing maintenance, preventive maintenance, or alterations 
under Sec.  145.1205;
    (5) Maintaining and revising a list of the maintenance functions 
approved by the FAA that may be performed under contract by another 
person in accordance with Sec.  145.1217(a)(1), including submitting 
revisions to the certificate holding district office for approval;
    (6) Maintaining and revising the contract maintenance information 
required by Sec.  145.1217(a)(2) including how and when the certificate 
holding district office is notified of revisions; and
    (7) 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.


Sec.  145.1211  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) The quality control manual must include at least the following:
    (1) A description of the quality control system and procedures used 
for--
    (i) Inspecting incoming 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, preventive maintenance, or alterations for the repair 
station in accordance with 145.1217;
    (vii) Performing final inspection and approval for 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;
    (ix) Taking corrective action on deficiencies;
    (x) Identifying and managing suspected unapproved parts; and
    (xi) Ensuring that maintenance not completed as a result of shift 
change or similar interruption is properly completed.
    (2) A sample of the inspection and maintenance forms and 
instructions for completing such forms or a reference to a separate 
forms manual; and
    (3) 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.


Sec.  145.1213   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.
    (b) A certificated repair station must certify 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.  145.1155


Sec.  145.1215  Capability list.

    (a) A certificated repair station may establish and maintain, in a 
format acceptable to the FAA, a capability list that includes all the 
articles for which it is rated to perform maintenance, preventive 
maintenance, or alterations.

[[Page 30085]]

    (b) An article may be listed on the capability list only if it is 
within the scope of the repair station's ratings and operations 
specifications.
    (c) Within the rating categories identified in Sec.  145.1059, the 
capability list must identify each airframe, powerplant, or propeller 
by manufacturer, model, and series as applicable. For a component 
rating, the list must identify each component for which the repair 
station is rated by manufacturer, manufacturer-designated nomenclature, 
and basic part number.
    (d) Changes may be made to the capabilities list:
    (1) By submitting a request to the FAA for approval; or
    (2) Upon application, as prescribed in Sec.  145.1058, the repair 
station may request authorization in its operations specifications to 
make additions to the capabilities list through self-evaluation. The 
self-evaluation must be documented and include a determination that the 
repair station has all of the technical data, housing, facilities, 
equipment, material, processes, and trained personnel in place to 
perform maintenance, preventive maintenance, or alterations on the 
article in accordance with this part.
    (e) Following changes to its capabilities 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.  
145.1209(d).
    (f) A periodic review of the capability list must be accomplished 
at least every 2 years to determine if it is current. Following the 
periodic review, the capability list shall be revised to remove those 
articles for which the repair station no longer has the technical data, 
housing, facilities, equipment, material, processes, or trained 
personnel necessary to perform maintenance or alterations on the 
article.


Sec.  145.1217  Contract maintenance.

    (a) A certificated repair station may contract a maintenance 
function pertaining to an article to another person provided--
    (1) The maintenance function to be contracted is approved by the 
FAA; 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 name of each person with whom the repair station contracts 
maintenance functions;
    (ii) The type of certificate and ratings, if any, held by each 
person to whom the repair station contracts a maintenance function; and
    (iii) The maintenance function(s) contracted to each person.
    (b) If a maintenance function is contracted under paragraph (a) of 
this section to a person not certificated to perform the work, the 
repair station must:
    (1) Determine, in accordance with the procedures required under 
Sec.  145.1211(c) (1) (vi), that the noncertificated person follows a 
quality control system equivalent to the system followed by the 
certificated repair station;
    (2) Remain directly in charge of the work performed by the 
noncertificated person;
    (3) Verify, by test and/or inspection, that the work has been 
performed satisfactorily and that the article is airworthy before 
approving it for return to service; and
    (4) Ensure the repair station employee requirements of Sec.  
145.1151(c) are met when accomplishing the requirements of paragraphs 
(b) (1) and (b) (3) of this section.
    (c) A certificated repair station may not exercise the privileges 
of its certificate by providing only approval for return to service of 
an article following contracting of maintenance, preventive 
maintenance, or alterations.


Sec.  145.1219  Recordkeeping.

    (a) A certificated repair station must retain records in English 
that demonstrate compliance with the requirements of part 43 of this 
chapter. The records must be retained in a format acceptable to the 
FAA.
    (b) A certificated repair station must provide a copy of the 
approval for return to service in accordance with Sec.  43.5 of this 
chapter to the owner or operator of the article on which 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.  145.1221  Service difficulty reports.

    (a) A certificated repair station must report to the FAA discovery 
of any serious failure, malfunction, or defect of an article in a 
format acceptable to the FAA. The report must be submitted within 96 
hours of approving the article for return to service.
    (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 parts 21, 121, 125, or 
135 of this chapter.
    (d) A certificated repair station may submit a service difficulty 
report for the following:
    (1) A part 121 certificate holder, provided the report meets the 
requirements of part 121 of this chapter, as appropriate.
    (2) A part 125 certificate holder, provided the report meets the 
requirements of part 125 of this chapter, as appropriate.
    (3) A part 135 certificate holder, provided the report meets the 
requirements of part 135 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.  145.1223  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 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 approve for return to 
service any

[[Page 30086]]

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.

Subparts A through E [Removed and Reserved]

    25. On [24 months after publication of final rule], remove and 
reserve subparts A through E.

    Issued in Washington, DC, on May 3, 2012.
Raymond Towles,
Acting Director, Flight Standards Service.
[FR Doc. 2012-11984 Filed 5-18-12; 8:45 am]
BILLING CODE 4910-13-P