Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations 74607 

lever. No further action is required by 

paragraph (h) of this AD for that replaced 

valve and lever. 

(2) If no damage is found, within the 

compliance time required by paragraph (h) of 

this AD, do a detailed inspection to detect 

interference between the landing gear door 

control rod and the landing gear sequence 

valve, and do all applicable corrective 

actions. Do all applicable corrective actions 

before further flight. No further action is 

required by paragraph (h) of this AD. 

(3) For the purposes of this AD, a detailed 

inspection is: An intensive examination of a 

specific item, installation, or assembly to 

detect damage, failure, or irregularity. 

Available lighting is normally supplemented 

with a direct source of good lighting at an 

intensity deemed appropriate. Inspection 

aids such as mirror, magnifying lenses, etc., 

may be necessary. Surface cleaning and 

elaborate procedures may be required. 

(i) Parts Installation Limitation 

As of the effective date of this AD, no 

person may install on any airplane a landing 

gear sequence valve, unless that valve has 

been inspected and corrected, as applicable, 

in accordance with the requirements of 

paragraph (h) of this AD. 

(j) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the International Branch, send it to ATTN: 

Dan Rodina, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

telephone 425–227–2125; fax 425–227–1149. 

Information may be emailed to: 9-ANM-116- 

AMOC-REQUESTS@faa.gov. Before using 

any approved AMOC, notify your appropriate 

principal inspector, or lacking a principal 

inspector, the manager of the local flight 

standards district office/certificate holding 

district office. The AMOC approval letter 

must specifically reference this AD. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain corrective 

actions from a manufacturer, the action must 

be accomplished using a method approved 

by the Manager, International Branch, ANM– 

116, Transport Airplane Directorate, FAA; or 

the European Aviation Safety Agency 

(EASA); or Airbus’s EASA Design 

Organization Approval (DOA). If approved by 

the DOA, the approval must include the 

DOA-authorized signature. 

(k) Related Information 

Refer to Mandatory Continuing 

Airworthiness Information (MCAI) EASA 

Airworthiness Directive 2013–0058, dated 

March 11, 2013, or related information. This 

MCAI may be found in the AD docket on the 

Internet at http://www.regulations.gov/#

!documentDetail;D=FAA-2014-0448-0002. 

(l) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless this AD specifies otherwise. 

(i) Airbus Service Bulletin A300–32–0464, 

dated July 17, 2012. 

(ii) Airbus Service Bulletin A300–32–6110, 

dated July 17, 2012. 

(iii) Airbus Service Bulletin A310–32– 

2146, dated July 17, 2012. 

(3) For service information identified in 

this AD, contact Airbus SAS, Airworthiness 

Office—EAW, 1 Rond Point Maurice 

Bellonte, 31707 Blagnac Cedex, France; 

telephone +33 5 61 93 36 96; fax +33 5 61 

93 44 51; email account.airworth-eas@

airbus.com; Internet http://www.airbus.com. 

(4) You may view this service information 

at the FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, WA. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://www.archives.

gov/federal-register/cfr/ibr-locations.html. 

Issued in Renton, Washington, on 

December 5, 2014. 

Michael Kaszycki, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2014–29228 Filed 12–15–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 65 

[Docket No.: FAA–2014–1000; Amdt. No. 

65–56] 

RIN 2120–AK40 

Elimination of the Air Traffic Control 

Tower Operator Certificate for 

Controllers Who Hold a Federal 

Aviation Administration Credential 

With a Tower Rating 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: This rulemaking eliminates 

the requirement for an air traffic control 

tower operator to hold a control tower 

operator certificate if the individual also 

holds a Federal Aviation Administration 

Credential with a tower rating (FAA 

Credential). The requirement to hold 

both the control tower operator 

certificate and the FAA Credential is 

redundant since the underlying 

requirements for the FAA Credential 

encompass those of the control tower 

operator certificate. This action will 

reduce the FAA’s burden of 

administering redundant programs for 

those individuals who hold an FAA 

Credential. 

DATES: This rule is effective February 

17, 2015. Send comments on or before 

February 17, 2015. 

ADDRESSES: Send comments identified 

by docket number FAA–2014–1000 

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 (DOT), 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: In accordance with 5 U.S.C. 

553(c), DOT solicits comments from the 

public to better inform its rulemaking 

process. DOT posts these comments, 

without edit, including any personal 

information the commenter provides, to 

www.regulations.gov, as described in 

the system of records notice (DOT/ALL– 

14 FDMS), which can be reviewed at 

www.dot.gov/privacy. 

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 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 

action, contact Michele Cappelle, Air 

Traffic Safety Oversight Service, Federal 

Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

267–5205; email michele.cappelle@

faa.gov. 

For legal questions concerning this 

action, contact Neal O’Hara, Attorney, 

Office of the Chief Counsel, Regulations 


tkelley on DSK3SPTVN1PROD with RULES
74608 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations 

Division, AGC–240, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone (202) 267–3073; email 

neal.o’hara@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Executive Summary 

On January 18, 2011, the President 

signed Executive Order 13563, 

Improving Regulation and Regulatory 

Review. Among other things, Section 6 

of that Executive Order directs agencies 

to conduct a retrospective analysis of 

existing rules. Specifically, Executive 

Order 13563 provides that ‘‘[t]o 

facilitate the periodic review of existing 

significant regulations, agencies shall 

consider how best to promote 

retrospective analysis of rules that may 

be outmoded, ineffective, insufficient, 

or excessively burdensome, and to 

modify, streamline, expand, or repeal 

them in accordance with what has been 

learned.’’ 

Consistent with Executive Order 

13563, the FAA routinely evaluates 

existing regulations and other 

requirements. The FAA works to 

identify unnecessary, duplicative, or 

ineffective regulations and to mitigate 

the impacts of those regulations, where 

possible, without compromising safety. 

As part of the FAA’s continuing 

obligation to review its regulations, the 

agency has reviewed the requirement in 

Title 14, Code of Federal Regulations 

(14 CFR) part 65 that FAA air traffic 

control tower operators hold a CTO 

certificate. The FAA has determined 

that the requirement for FAA air traffic 

control tower operators to hold the CTO 

certificate is redundant and 

unnecessary. These individuals are also 

required by FAA Order 8000.90, Air 

Traffic Safety Oversight Credentialing 

and Control Tower Operator 

Certification Programs, to hold an FAA 

Credential, and the underlying 

requirements for the FAA Credential 

encompass those of the CTO certificate. 

Therefore, consistent with the 

requirements of Executive Order 13563, 

and as discussed later, persons who 

hold an FAA Credential for the 

performance of their duties will no 

longer be required to hold a CTO 

certificate. 

The purpose of both the FAA 

Credentialing and the CTO programs is 

to establish that air traffic controllers 

possess the requisite skills to do their 

jobs safely. While the FAA Credential is 

comparable to a CTO certificate, they 

are two different programs requiring 

separate administrative activities. After 

many years of overseeing both 

programs, the FAA has determined 

there is no appreciable value in 

imposing both programs on the same 

population. Therefore, the FAA is 

amending 14 CFR part 65 to permit a 

person to act as an air traffic control 

tower operator if that person holds 

either an FAA Credential or a CTO 

certificate. FAA tower controllers must 

hold an FAA Credential. This 

amendment eliminates the need for an 

air traffic control tower operator to hold 

both an FAA Credential and a CTO 

certificate. 

The FAA notes that the CTO program 

will remain intact for those individuals 

who are not required to hold an FAA 

Credential (e.g., controllers at nonFederal contract towers). In addition, 

FAA air traffic control tower operators 

who currently possess CTO certificates 

will be permitted to retain them. 

The FAA estimates there will be 

minimal cost savings to the FAA of 

about $189,600 because of this rule 

change. 

Good Cause for Immediate Adoption 

Section 553(b)(3)(B) of Title 5 of the 

United States Code (5 U.S.C.), 

authorizes agencies to dispense with 

notice and comment procedures for 

rules when the agency finds ‘‘good 

cause’’ that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under this 

section, an agency, upon finding good 

cause, may issue a final rule without 

seeking comment prior to the 

rulemaking. 

The FAA finds that prior notice and 

public comment on this final rule are 

unnecessary. This final rule eliminates 

the requirement for an air traffic control 

tower operator (CTO) to hold a CTO 

certificate if the individual also holds an 

FAA Credential with a tower rating 

(FAA Credential). The requirement to 

hold both the CTO certificate and the 

FAA Credential is redundant, since the 

underlying requirements for the FAA 

Credential encompass those of the CTO 

certificate, and there will not be an 

adverse safety impact. Therefore, the 

FAA has determined that prior notice 

and public comment are unnecessary. 

Comments Invited 

The Regulatory Policies and 

Procedures of the Department of 

Transportation (DOT) (44 FR 1134; 

February 26, 1979), provide that to the 

maximum extent possible, operating 

administrations for the DOT should 

provide an opportunity for public 

comment on regulations issued without 

prior notice. The FAA is adopting this 

final rule without prior notice, but with 

public comment, because this rule 

removes a redundant requirement and 

promotes program efficiencies. 

Authority for This Rulemaking 

The FAA’s authority to issue rules on 

aviation safety is found in Title 49 of the 

United States Code. Subtitle I, Section 

106 describes the authority of the FAA 

Administrator, specifically Sections 

106(f) and (g). Subtitle VII, Aviation 

Programs, describes in more detail the 

scope of the agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart iii, Section 

44701, General Requirements; Section 

44702, Issuance of Certificates; and, 

Section 44703, Airman Certificates. 

Under Section 44701, the FAA is 

charged with prescribing regulations 

and minimum standards for practices, 

methods, and procedures the 

Administrator finds necessary for safety 

in air commerce. Section 44702 

provides the authority for the 

Administrator to issue certificates, 

including airman certificates. Section 

44703 describes the conditions that 

must be met for the Administrator to 

issue an airman certificate. This rule is 

within the scope of that authority. 

I. Background 

A. Statement of the Problem 

According to § 65.31, a person must 

hold a CTO certificate issued under 

subpart B of part 65 to act as an air 

traffic control tower operator. When the 

rule was first promulgated in 1962, all 

FAA controllers worked in tower 

facilities. However, as the air traffic 

control system evolved, other types of 

facilities, namely En Route and 

Terminal Radar Approach Control 

(TRACON) facilities, came into 

existence. The rule, however, continued 

to require only air traffic control tower 

operators to hold a CTO certificate. 

The FAA’s Air Traffic Safety 

Oversight Service (AOV) issues the FAA 

Credential to FAA air traffic controllers 

under its authority in FAA Order 

1100.161 Change 1, Air Traffic Safety 

Oversight. FAA Order 8000.90, Air 

Traffic Safety Oversight Credentialing 

and Control Tower Operator 

Certification Programs, explains how 

each of these programs are 

administered. 

The FAA Credentialing program is 

broader than the CTO program. The 

FAA Credentialing program requires all 

FAA air traffic controllers, including 

those working in tower, En Route and 

TRACON facilities, to hold an FAA 

Credential with appropriate ratings. 

FAA control tower operators, therefore, 

hold a CTO certificate under § 65.31 as 

well as an FAA Credential. The 

requirement to hold both the CTO 

certificate and the FAA Credential is 


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Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations 74609 

redundant, since the underlying 

requirements for the FAA Credential 

encompass those of the CTO certificate. 

There will not be an adverse impact to 

safety as the result of this change to part 

65. 

The purpose of both the FAA 

Credentialing and the CTO programs is 

to establish that air traffic controllers 

possess the requisite skills to do their 

jobs safely. While the FAA Credential is 

comparable to a CTO certificate, they 

are two different programs requiring 

separate administrative activities. After 

many years of overseeing both 

programs, the FAA has determined 

there is no appreciable value in 

imposing both programs on the same 

population (FAA control tower 

operators). After the effective date of 

this rule, the FAA will no longer issue 

CTO certificates to FAA air traffic 

control tower operators who are 

required to hold an FAA Credential for 

the performance of their duties. As 

noted previously, FAA air traffic control 

tower operators who currently possess 

CTO certificates will be permitted to 

retain them. 

B. CTO Program 

On August 10, 1962, the FAA 

published a final rule that added 

Subchapter D ‘‘Airmen’’ to Chapter I of 

Title 14 of the Code of Federal 

Regulations (27 FR 7954). The 

amendment was part of the FAA’s 

program to recodify its regulatory 

material into the Federal Aviation 

Regulations, which replaced the Civil 

Air Regulations and Regulations of the 

Administration. This rule first 

established the requirements for the 

CTO certificate in part 65. The purpose 

of the CTO program is to ensure that air 

traffic controllers possess the requisite 

qualifications and skills to do their jobs 

safely. 

The FAA established AOV in 2005 to 

provide independent oversight of air 

traffic services. As part of its 

responsibilities, AOV manages the CTO 

program and establishes policy and 

guidance for the program. The FAA’s 

Civil Aviation Registry is the official 

custodian of airmen and aircraft records. 

The Registry is the office responsible for 

the day-to-day administration activities 

including the review, recordation, and 

the issuance of CTO certificates and 

AOV Credentials. The CTO information 

that is currently in the Civil Aviation 

Registry database will remain in the 

database. The Civil Aviation Registry 

will continue to maintain CTO 

information and will continue to receive 

and process CTO applications for 

individuals who meet the requirements 

of 14 CFR part 65. 

The FAA’s Civil Aviation Registry 

will continue to receive inquiries 

concerning FAA air traffic controllers. 

Any inquiries related to policy and 

guidance concerning the CTO program 

and the Credentialing program will be 

directed to AOV, as appropriate. 

C. FAA Credentialing Program 

In addition to managing the CTO 

program, AOV manages the FAA 

Credentialing program for air traffic 

controllers. Like the CTO program, the 

purpose of the Credentialing program is 

to establish that air traffic controllers 

possess the requisite qualifications and 

skills to do their jobs safely. The 

Credentialing program encompasses the 

underlying requirements of the CTO 

program. Unlike the CTO program, 

which is only applicable to air traffic 

control tower operators, the FAA 

Credentialing program is broader and 

applies to all air traffic controllers, 

including those who work in En Route 

and TRACON facilities. 

AOV is the office responsible for 

tracking and maintaining the system 

that houses FAA Credential 

information. This system does not 

contain any personally identifiable 

information, such as Social Security 

numbers, home addresses, or dates of 

birth. 

II. Discussion of Adopted Final Rule 

A. Removal of Redundant Program 

Requirements (§§ 65.11 and 65.31) 

The FAA is revising §§ 65.11 and 

65.31 to recognize the FAA Credential 

and permits a person to act as an air 

traffic control tower operator if that 

person holds either an FAA credential 

or a CTO certificate. FAA tower 

controllers must hold an FAA 

credential. Any person who is required 

to hold an FAA Credential for the 

performance of his or her duties will no 

longer be required to also hold a CTO 

certificate. It also relieves the FAA from 

subjecting a select group of air traffic 

controllers to two separate programs. 

To conform to the changes in this 

rule, the FAA is updating its internal 

procedures for managing the FAA 

Credentialing and CTO programs (FAA 

Order 8000.90). The revision to FAA 

Order 8000.90 will be effective at the 

same time as this rule. 

B. Removal of Outdated Language 

(§ 65.43) 

The FAA is also removing outdated 

language regarding junior and senior 

ratings. On August 1, 1970, the FAA 

published a final rule that reorganized 

the requirements in subpart B of part 65 

and established a facility rating (35 FR 

12326). The FAA intended to remove 

the junior and senior ratings because 

they were unnecessary, but 

inadvertently did not remove the 

regulatory text. This rule corrects that 

error, and the FAA is now removing the 

unnecessary requirement. 

III. Regulatory Notices and Analyses 

A. Regulatory Evaluation 

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 

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 base year of 1995). 

This portion of the preamble 

summarizes the FAA’s analysis of the 

economic impacts of this final rule. We 

suggest readers seeking greater detail 

read the full regulatory evaluation, a 

copy of which we have placed in the 

docket for this rulemaking. 

In conducting these analyses, FAA 

has determined that this final 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 not 

‘‘significant’’ as defined in DOT’s 

Regulatory Policies and Procedures; (4) 

will not have a significant economic 

impact on a substantial number of small 

entities; (5) will not create unnecessary 

obstacles to the foreign commerce of the 

United States; and (6) will 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 below. 


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Who is potentially affected by this rule? 

Persons who hold an FAA Credential 

for the performance of their duties are 

potentially affected by this rule. After 

the effective date of this rule, such 

persons will no longer be required to 

hold a CTO certificate. 

Assumptions: 

• All costs are presented in 2014 

dollars. 

• The FAA estimates about $35 to 

process each CTO certificate. 

• The number of CTO certificates 

issued in 2011 and 2012 totaled 1,070 

and 1,048, respectively. The average of 

both years is 1,059. 

• The FAA estimates 2 hours for the 

Air Traffic Supervisor/Manager to fill 

out the CTO form. 

• The FAA estimates 15 minutes for 

a Legal Instruments Examiner to enter 

the CTO form information into the AFS 

database. 

• The hourly rate for an Air Traffic 

Supervisor/Manager is $68.11. 

• The hourly rate for a Legal 

Instruments Examiner is $31.29. 

Total Benefits and Costs of This Rule 

This final rule responds to Executive 

Order 13563 by reducing the FAA’s 

burden of administering redundant 

programs, the FAA Credentialing 

program and the CTO program. 

A CTO certificate costs the same 

amount as an FAA Airmen Certificate to 

produce. The FAA estimates that this 

cost range is between $20 and $50 per 

Airmen Certificate. The FAA used the 

midpoint of that range, $35, as an 

estimate of cost to produce a CTO 

certificate. 

Since this rulemaking eliminates the 

requirement for controllers holding an 

FAA Credential to also hold a CTO 

certificate, this amounts to an average 

cost savings of approximately $189,600; 

ranging from $173,700–$205,500 for a 

$20–$50 per application processing 

cost, respectively. 

B. 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-forprofit 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 has determined that this 

final rule will not have a significant 

economic impact on a substantial 

number of small entities for the 

following reason: 

This rule reduces redundancy, which 

lowers FAA costs and has no effect 

outside of the FAA. 

Therefore, as provided in section 

605(b), the head of the FAA certifies 

that this rulemaking will not result in a 

significant economic impact on a 

substantial number of small entities. 

The FAA solicits comments regarding 

this determination. 

C. 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 final rule and 

determined that it will have only a 

domestic impact and therefore will not 

create unnecessary obstacles to the 

foreign commerce of the United States. 

D. 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 $151 

million in lieu of $100 million. This 

final rule does not contain such a 

mandate; therefore, the requirements of 

Title II of the Act do not apply. 

E. 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. The 

FAA has determined that there is no 

new requirement for information 

collection associated with this final 

rule. 

F. International Compatibility and 

Cooperation 

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 reviewed the corresponding ICAO 

Standards and Recommended Practices 

and has identified no new differences 

with these regulations. 

G. Environmental Analysis 

FAA Order 1050.1E, Environmental 

Impacts: Policies and Procedures, 

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 rulemaking action 

qualifies for the categorical exclusion 

identified in paragraph 312f and 

involves no extraordinary 

circumstances. 

IV. Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this final rule 

under the principles and criteria of 

Executive Order 13132, Federalism. The 

agency determined that this action will 

not have a substantial direct effect on 

the States, or the relationship between 


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Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations 74611 

the Federal Government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government, and, therefore, 

does not have Federalism implications. 

B. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this final rule 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

Distribution, or Use (May 18, 2001). The 

agency has 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. 

C. Executive Order 13609 

Executive Order 13609, Promoting 

International Regulatory Cooperation, 

promotes international regulatory 

cooperation to meet shared challenges 

involving health, safety, labor, security, 

environmental, and other issues and to 

reduce, eliminate, or prevent 

unnecessary differences in regulatory 

requirements. The FAA has analyzed 

this action under the policies and 

agency responsibilities of Executive 

Order 13609, and has determined that 

this action would have no effect on 

international regulatory cooperation. 

V. How To Obtain Additional 

Information 

A. Comments Invited 

The FAA invites interested persons to 

participate in this rulemaking by 

submitting written comments, data, or 

views. The agency also invites 

comments relating to the economic, 

environmental, energy, or federalism 

impacts that might result from adopting 

this rule. The most helpful comments 

reference a specific portion of the rule, 

explain the reason for any 

recommended change, and include 

supporting data. To ensure the docket 

does not contain duplicate comments, 

commenters should send only one copy 

of written comments, or if comments are 

filed electronically, commenters should 

submit only one time. 

The FAA will file in the docket all 

comments it receives, as well as a report 

summarizing each substantive public 

contact with FAA personnel concerning 

this rulemaking. The FAA will consider 

all comments it receives on or before the 

closing date for comments. The agency 

may change this rule in light of the 

comments it receives. 

Commenters are encouraged to 

identify the provisions on which they 

are commenting based on the title of the 

provisions. 

Proprietary or Confidential Business 

Information: Commenters should not 

file proprietary or confidential business 

information in the docket. Such 

information must be sent or delivered 

directly to the person identified in the 

FOR FURTHER INFORMATION CONTACT

section of this document, and marked as 

proprietary or confidential. If submitting 

information on a disk or CD–ROM, mark 

the outside of the disk or CD–ROM, and 

identify electronically within the disk or 

CD–ROM the specific information that 

is proprietary or confidential. 

Under 14 CFR 11.35(b), if the FAA is 

aware of proprietary information filed 

with a comment, the agency does not 

place it in the docket. It is held in a 

separate file to which the public does 

not have access, and the FAA places a 

note in the docket that it has received 

it. If the FAA receives a request to 

examine or copy this information, it 

treats it as any other request under the 

Freedom of Information Act (5 U.S.C. 

552). The FAA processes such a request 

under Department of Transportation 

procedures found in 49 CFR part 7. 

B. Rulemaking Documents 

An electronic copy of a rulemaking 

document may be obtained by using the 

Internet— 

1. Search the Federal eRulemaking 

Portal (http://www.regulations.gov); 

2. Visit the FAA’s Regulations and 

Policies Web page at http://www.faa.

gov/regulations_policies/ or 

3. Access the Government Printing 

Office’s Web page at: http:// 

www.gpo.gov/fdsys/. 

Copies may also be obtained by 

sending a request (identified by notice, 

amendment, or docket number of this 

rulemaking) to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. 

C. Comments Submitted to the Docket 

Comments received may be viewed by 

going to http://www.regulations.gov and 

following the online instructions to 

search the docket number for this 

action. Anyone is able to search the 

electronic form of all comments 

received into any of the FAA’s dockets 

by the name of the individual 

submitting the comment (or signing the 

comment, if submitted on behalf of an 

association, business, labor union, etc.). 

D. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act (SBREFA) of 

1996 requires FAA to comply with 

small entity requests for information or 

advice about compliance with statutes 

and regulations within its jurisdiction. 

A small entity with questions regarding 

this document, may contact its local 

FAA official, or the person listed under 

the FOR FURTHER INFORMATION CONTACT

heading at the beginning of the 

preamble. To find out more about 

SBREFA on the Internet, visit http://

www.faa.gov/regulations_policies/

rulemaking/sbre_act/. 

List of Subjects in 14 CFR Part 65 

Air traffic controllers, Airmen, 

Aviation safety. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations as follows: 

PART 65—OPERATING 

REQUIREMENTS: DOMESTIC, FLAG, 

AND SUPPLEMENTAL OPERATIONS 

■ 1. The authority citation for part 65 is 

revised to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g). 40113, 

44701–44703, 44707, 44709–44711, 45102– 

45103, 45301–45302. 

■ 2. Amend § 65.11 by revising 

paragraph (b) to read as follows: 

§ 65.11 Application and issue. 

* * * * * 

(b) Except for FAA Credential holders 

with tower ratings, an applicant who 

meets the requirements of this part is 

entitled to an appropriate certificate and 

rating. 

* * * * * 

■ 3. Amend § 65.31 by revising the 

section heading, introductory text, and 

paragraphs (a) and (b) to read as follows: 

§ 65.31 Required credentials, certificates, 

and ratings or qualifications. 

No person may act as an air traffic 

control tower operator at an air traffic 

control tower in connection with civil 

aircraft unless he or she— 

(a) Holds an FAA Credential with a 

tower rating or an air traffic control 

tower operator certificate issued under 

this subpart; 

(b) Holds a facility rating for that 

control tower issued under this subpart, 

or has qualified for the operating 

position at which he or she acts and is 

under the supervision of the holder of 

a facility rating for that control tower; 

and 

* * * * * 

§ 65.43 [Removed and Reserved] 

■ 4. Remove and reserve § 65.43. 


tkelley on DSK3SPTVN1PROD with RULES
74612 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations 

1 Ginnie Mae is a registered service mark of the 

Government National Mortgage Association; see 

http://www.ginniemae.gov/. 

2That guidance can be found under the Guidance 

for Lenders’ Operator Financial Statement section at 

http://portal.hud.gov/hudportal/HUD?src=/federal_

housing_administration/healthcare_facilities/

residential_care. 

Issued under authority provided by 49 

U.S.C. 106(f), 44701(a), and 44703 in 

Washington, DC, on November 14, 2014. 

Michael P. Huerta, 

Administrator. 

[FR Doc. 2014–29386 Filed 12–15–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Parts 5 and 232 

[Docket No. FR–5794–F–03] 

RIN 2502–AJ25 

Federal Housing Administration (FHA): 

Section 232 Healthcare Facility 

Insurance Program—Aligning Operator 

Financial Reports With HUD’s Uniform 

Financial Reporting Standards 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Final rule. 

SUMMARY: On September 16, 2014, HUD 

published an interim rule that revised 

the financial reporting deadlines for 

operators participating in FHA’s 

program for insurance of health care 

facilities under section 232 of the 

National Housing Act (Section 232 

program) to bring them in-line with the 

reporting periods prescribed in HUD’s 

Uniform Financial Reporting Standards, 

to which owners and borrowers 

participating in the Section 232 program 

are subject. HUD received no public 

comments in response to its solicitation 

of comment in the September 16, 2014, 

rule, and is therefore adopting the 

interim rule without change. 

DATES: Effective date: January 15, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Vance T. Morris, Office of Residential 

Care Facilities, Office of Healthcare 

Programs, Office of Housing, 

Department of Housing and Urban 

Development, 451 7th Street SW., Room 

6264, Washington, DC 20410–8000; 

telephone number 202–708–0599 (this 

is not a toll-free number). Persons with 

hearing or speech impairments may 

access this number through TTY by 

calling the toll-free Federal Relay 

Service at 1–800–877–8339. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 232 of the National Housing 

Act (12 U.S.C. 1715w) (Section 232) 

authorizes FHA to insure mortgages 

made by private lenders to finance the 

development of nursing homes, 

intermediate care facilities, board and 

care homes, and assisted living facilities 

(collectively, residential healthcare 

facilities). The Section 232 program 

allows for long-term, fixed-rate 

financing for new and rehabilitated 

properties for up to 40 years. Existing 

properties without rehabilitation can be 

financed with or without Ginnie Mae® 1

Mortgage Backed Securities for up to 35 

years. Eligible borrowers under the 

Section 232 program include investors, 

builders, developers, public entities, 

and private nonprofit corporations and 

associations. The documents executed 

at loan closing provide that the 

borrower may not engage in any other 

business or activity. The Section 232 

program regulations are codified in 24 

CFR part 232. 

In 2012, HUD commenced the 

rulemaking to update the Section 232 

program regulations, regulations that 

had not been revised since 1996. By 

final rule published on September 7, 

2012, at 77 FR 55120, HUD revised the 

Section 232 program regulations to 

reflect current policy and practices, and 

improve accountability and strengthen 

risk management in the Section 232 

program. The September 7, 2012, final 

rule was preceded by a proposed rule 

published on May 3, 2012, at 77 FR 

26304. 

Included in the updates made by the 

2012 rulemaking were revisions to 24 

CFR 5.801 (Uniform Financial Reporting 

Standards) and 24 CFR 232.1009 

(Financial Reports), both of which 

contained reporting requirements 

applicable to the Section 232 program. 

HUD revised these regulatory sections to 

include operators of projects insured or 

held by HUD as entities that must 

submit financial statements to HUD. 

Owners and borrowers have long been 

required to submit financial reports. 

Sections 5.801(c)(4) and 232.1009 

provide that operators must submit 

financial statements to HUD quarterly 

within 30 calendar days of the date of 

the end of each fiscal quarter, and 60 

calendar days from the end of the fiscalyear-end quarter to submit final fiscal 

year end quarter and fiscal year-to-date 

reports to HUD. The other entities 

required to submit reports were 

provided slightly longer periods to 

prepare and submit the reports than that 

provided to operators. In the September 

7, 2012, final rule, commenters asked 

that HUD extend the 30-day filing 

deadline for end-of-each quarterly 

report to 60 days. HUD declined to 

provide the extension and stated that 

receipt of unaudited quarterly and yearto-date operator financial statements 

promptly at the end of each quarter is 

needed for effective monitoring of a 

property’s financial operations and the 

trend of those operations. 

HUD’s September 16, 2014, interim 

rule, published at 79 FR 55360, revised 

the Section 232 program regulation to 

increase the amount of time operators 

have to comply with the reporting 

requirements provided in §§ 5.801(c)(4) 

and 232.1009. In the interim rule, HUD 

advised that with almost two years of 

administering the Section 232 program 

under the revised regulations, HUD 

determined that it can provide operators 

additional time to submit financial 

reports and maintain the effective 

monitoring of a property’s financial 

operations and the trend of those 

operations, which was of concern to 

HUD in the September 7, 2012, rule. 

The September 16, 2014, interim rule 

provided operators with 60 calendar 

days following the end of a fiscal 

quarter and 90 calendar days following 

the end of the fiscal-year-end quarter to 

comply with HUD’s financial statement 

reporting requirements. HUD solicited 

comment on the changes made to 

Section 232 program regulations by the 

September 16, 2014, interim rule, but 

received no public comments in 

response to this solicitation. 

On October 3, 2014, HUD published 

a notice in the Federal Register, at 79 

FR 59646, announcing the 

commencement of compliance with the 

Uniform Financial Reporting Standards. 

Section 5.801(d)(4) of HUD’s Uniform 

Financial Reporting Standards 

regulations provides that operators of 

projects with Section 232 insured 

mortgages (the entities described in 

§ 5.801(a)(6)) must comply with the 

requirements of § 5.801 with respect to 

fiscal years commencing on or after the 

date that is 60 calendar days after the 

date on which HUD announces, through 

Federal Register notice, that it has 

issued guidance on the manner in 

which these reports will be transmitted 

to HUD. The October 3, 2014, notice 

served as the notice required by 

§ 5.801(d)(4) that HUD has issued 

guidance on the manner in which the 

operator financial reports will be 

transmitted to HUD.2 Accordingly, 

operators must comply with the 

operator financial report requirements 

for fiscal years commencing on or after 

December 2, 2014. 


tkelley on DSK3SPTVN1PROD with RULES