Exemption No. 10767A

UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION RENTON, WASHINGTON 98057

- 3356

In the matter of the petition of

The Boeing Company

for an exemption from § § 25. 901(c) and 25.981(a)(3) of Title 14, Code of Federal Regulations Regulatory Docket No. FAA

- 20 12

- 113 2

TIME

- LIMITED PARTIAL GRANT OF EXEMPTION

By letter dated August 18, 2014, Douglas M. Lane

, Director, Regulatory Administration

, The Boeing Company

, P.O. Box 3707, Seattle, WA 98124 , petitioned the Federal Aviation Administration (FAA) for an amendment to E xemption No. 10767, issued on May 17, 201 3

. That exemption granted Boeing time

- limited, partial relief from the requirements of §§ 25.901(c) and 25.981(a)(3) of Title 14, Code of Federal Regulations (14 CFR) for p lanned changes to the f uel q uantity i ndication s ystem (FQIS) for the fuel quantity processor unit (FQPU) parts obsolescence modification on the Boeing M odels 767

- 200/

- 300/

- 300F/

- 400ER

. The petitioner requests an amendment to Exemption No. 10767 to extend it until 2019 to provide coverage through the end of the currently committed 767

- 300 and

- 300F production activity.

The petitioner requests relief from the following regulation(s):

Sect ion 25.901(c)

– Installation

. (c) For each powerplant and auxiliary power unit installation, it must be established that no single failure or malfunction or probable combination of failures will jeopardize the safe operation of the airplane except that th e failure of structural elements need not be considered if the probability of such failure is extremely remote.

Section 25.981(a)(3)

– Fuel tank ignition prevention

. (a) No ignition source may be present at each point in the fuel tank or fuel tank system where catastrophic failure could occur due to ignition of fuel or vapors. This must be shown by: (3) Demonstrating that an ignition source could not result from each single failure, from each single failure in combination with each latent failure conditio n not shown to be extremely remote, and from all combinations of failures not shown to be extremely2 improbable. The effects of manufacturing variability, aging, wear, corrosion, and likely damage must be considered.

Related section of 14 CFR :

Section 25.13 09

– Equipment, systems, and installations , states that required equipment, systems, and installations be designed to ensure that they perform their intended functions under any foreseeable operating condition and that the occurrence of any failure conditi on that would prevent the continued safe flight and landing of the airplane be extremely improbable.

The petitioner supports the request with the following information:

This section quotes the relevant information from the petitioner’s request. The complete petition is available at the Department of Transportation’s Federal Docket Management System (FDMS) on the Internet at http://www.regulations.gov in Docket No. FAA

- 2012

- 113 2

. Description of Issue:

Bac kground:

The 767 Fuel Quantity Processer Unit (FQPU) uses digital ARINC 429 busses to receive/transmit data to the flight deck, EICAS and refueling panels through two redundant Input/Output Channel (IOC) circuit cards. The current production IOC card utili zes many integrated electronic microchips to transmit and receive the ARINC 429 data. One of the microchips, which is involved with communication to the flight deck and refueling panel, has been out of production for several years, and the supply ha s now b ecom e exhausted.

In February 2012 the FQPU supplier informed Boeing that the supply of this particular ARINC 429 chip used on the two IOC cards and also on the [built

- in test equipment] BITE card will run out in late 2012 and that there were no sources for procurement of the current chip. The supplier initiated a contract with another chip manufacturer to develop a replacement chip to the unchanged requirements of the original chip as defined by the supplier’s Specification Control Document. The new chip, by requirement, is an identical form

- fit

- function replacement to the current production chip. In August 2012 , Boeing and the supplier reviewed the existing stores of parts and determined the existing supply would support production through Janua ry 2013 with a possible extension into March 2013.

In the previous exemption application for this subject, The Boeing Company communicated that if showing full compliance to 25.901(c) Amendment Level 25

- 126 and 25.981(a)(3) Amendment Level 25

- 125 for the F QIS at the system level was required due to replacing this obsolescent chip with an identical form

- fit

- function chip, then a significant number of changes would be required to the FQIS intrinsically safe side wiring. The previous exemption was granted as a time

- limited exemption (reference exemption number 10767), expiring in 2016, after which ful l compliance of the FQIS would be required. Since the issuance of the time limited exemption , The Boeing3 Compa ny has been working on a FQIS that would meet the req uirements and has quantified the design change required and the cost of the new design. Based on these findings the Boeing Company is petitioning for a new time limited exemption to address the remaining production of the 767

- 300 and

- 300F.

Discussion:

Thi s new petition for a time limited exemption is being made since full compliance to these rules for the 767 would require extensive system design changes which do not substantially improve the safety of the current airplane design, are economically prohibit ive given the remaining production of the 767

- 300 and

- 300F and are not in the public’s interest. In conjunction with this petition The Boeing Company is proposing to incorporate significant improvements to newly produced 767 airplanes that will increase
t he level of safety by addressing both ignition sources and exposure time.

Boeing proposes that all new production airplanes incorporate design changes similar to the center fuel tank wire separation being developed by SB 767

- 28

- XXXX which will be required by AD for all 767 freighters that do not have NGS. These wire separation changes would be implemented on all new production airplanes one year after the exemption is granted. Boeing will further address ignition sources by requiring a three tank, 750 hour BITE check, similar to instructions for the center wing tank provided in a SB 767

- 28

- 0118 for freighters without NGS, and being required by AD. The proposed BITE instructions would apply to all tanks.

All newly produced 767 airplanes, since line number 993 in July 2010, address flammability exposure time with the incorporation of a center tank fuel tank flammability reduction system, the Nitrogen Generation System (NGS). This addresses exposure time as required for all 767 in

- service passenger airplanes and adds flammability reduction systems for all freighter airplanes since line number 993.

In the previously granted time limited exemption, the FAA stated that current fuel tank safety airworthiness standards rely upon a balanced approach of precluding ignit ion sources that could form in the fuel tanks and limiting fuel tank flammability exposure time. The aforementioned fuel tank wire separation, BITE check and flammability reduction system will address both exposure time and ignition sources for all newly
p roduced 767 airplanes, both passenger and freighter.

This time limited exemption is being sought for the no single plus latent (greater than extremely remote) as is stated in §25.981(a)(3) and interpreted by the FAA for §25.901(c). Exemption is also being sought for the non

- environmental aspects of §25.901(c) provided by FAA interpretation, and the explicit §25.981(a)(3) requirements of manufacturing variability, aging, wear, corrosion, and likely damage, as these considerations are already covered by facto ry manufacturing processes, and airline maintenance of the type design of airplane. Exemption is requested to apply through the end of 2019 to provide coverage through the end of the currently committed 767

- 300 and

- 300F production activity and potential i ncremental sales. The 767

- 2C, which will be produced beyond 2019, will be fully compliant to these requirements.4 S tatement of Public Interest:

In support o f this petiti o n, Boeing is proposing to address b o th ignition s o urces and exposure ti m e in the center tank ( N GS on all newly produced airplanes). In

- service airplanes are currently requir e d to address either exposure ti m e (passenger airplanes) or ignition sources (freighter air p lanes) but not both. This a pproach addresses both aspects, incorporating i m pro v e ments to address bo t h ignition sources and exposure ti m e.
All new production airplanes will incorpora t e de s ign changes si m ilar to t h e center fuel tank wire separation being developed by SB 767

- 28

- XXXX which will be required by AD for all 767 freighters t hat do not have NGS. These wire separation changes will be i m pl em ented on all new production airplanes one year after the exe m ption is granted and will be m ade with the g uidance of 2 8

- A W L

- 09. In addition, Boeing is proposing a t h ree tank, 750 hour BITE check, si m ilar to instruc t ions for the center tank provided in SB767

- 28

- 01 1 8 for freighters witho u t NGS, and b e ing req u ired by AD. These changes will address ignition sources on all newly produced 767 airplanes.

All newly produced 767 airplanes, si n ce line number 993 in July 2010, address flammability exposure ti m e with the incorpor a tion of a center tank fuel tank flamm a bility reduction syste m , the Nitrogen Generation System (NGS). This addresses exposure ti m e as required f or all 767 i n

- ser v ice pa s senger ai r p lanes and a d ds flammability reducti o n syste m s for all freighter airplanes since line number 993.

By addressing both exposure ti m e and ignition sources, newly produced 767 airplanes will use a balanced ap pr oach and achieve a hi gher le v el of s afety than an y in

- service 767 airplane. D esign changes that would be requ i red to be fully co m pliant would not provide a significant benefit or increased level of safety for new production airplanes that incorporate the proposed wire separation, B I TE check, and have the Nitrogen Generation System (NGS) installed. Additionally, the costs associated w ith these changes would not be com m en s urate with the increased lev e l of safety and would be econo m ically prohibitive given the relatively s m all nu m ber of additional production aircraft that would be burdened with these costs. The s e changes would include the following:

• New system architecture and exten s ive air p lane wiring cha n ges to ens u re adequate wire separation throughout t h e fuel quantity indication syste m

.

• In

- tank component changes (new bracket s , potential need for shorter probes, revised in

- tank wire har n ess and retention m eans).

• Software changes related to Fuel Tank Gauging Function and Safety function if shorter probes are required.

Release of new Boeing design architectu re require m ents, supplier develop m ent and qualification of new sof t ware and hardware to be fully co m p l iant would negatively affect offerability of the 767

- 300 and 300F air p lanes. These desi g n changes would also affect only one custo m er and result in an und esir a ble configuration mi x for that custo m er, driving m aintenance c o mplexity and increased operational costs.5 Finally, the associated design proposal in support of this petition for exemption will i m ple m ent center tank FQ IS li m ited wire s e paration and a th ree tank FQIS BITE check earlier than other alternatives, approxi m ately one year after grant of the petition. This will
pro v ide i m portant e n hance m ents to air p lane s afety earlier, and on m o r e production air p lanes. Pl ease n o te, relief is n o t b eing sought for the 767

- 2C, which will b e fully

co m pliant with a new FQ IS, and is anti c ipa t ed to be the only mi nor mo del produced for the next se v eral d ecade s

. Granting this time limited exemption is in the public interest for the aforementioned

reasons an d will:

1. Promote continued production of the 767 airplane after May 17, 2016, currently forecasted to end in 2019. All production airplanes will address fuel tank safety with incorporation of wire separation, scheduled health checks, and a fuel tank inertin g system (NGS). A grant of exemption will also provide significant economic benefit to the public in the form of continued 767 production and support efficient, safe operation by our customers by providing a consistent fleet configuration.

2. The proposal fo r this exemption request of implementing the center tank FQIS limited wire separation and three tank FQIS BITE check can be accomplished on an earlier schedule, (proposed to be one year after the exemption is granted) enhancing safety earlier on more airpl anes.
Statement of No Adverse Effect on Safety:

The replace m ent of the existing ARINC 429 chip with the new replacement chip does not advers e ly a ff ect the sa f ety of the cur r ent syste m . There is no threat to f uel tank ig n ition from the IOCs within the FQPU be c ause there is no electrical conductor connection between the boards with the ob s olete chip and the fuel tank. Hence, the change has no relation to fuel tank ignition prevention, does not i m pact line replaceable unit (LRU) or system level failure m odes, effects, or probabilities relative to fuel tank ignition and therefore ha s no affect [sic] on the safety of the s y stem and has no i m pact to airplane safety.

The 767 FQIS was found to be compliant to §25.901(c) during airplane type certification for the FQI S change in 1992 and since then Boeing has co m pleted the SFAR88 safety

assess m ent and has increased t h e airplane fuel s y stem safety with installation of a hot short pr o te c tor f or the d e nsito m eter a nd with in st all a tion of a NGS f or the cent e r f uel tanks. Th e proposed change to address the p r evious ti m e li m ited exe m ption has no impact on any of the SFAR88 r elated assess m ents.

Even prior to the i m ple m entation of NGS which further reduces any risk, the Boeing

assess m ent was that the risks for the 767 FQIS insta llation were extre m ely i m probable, which is t h e typical ind u stry and C F R §25.1309 standard for an acce p table safety for syste m s.6 The Boeing approach to incorporate design c h anges to add center fuel tank fuel wire separation, a three tank 750 hour BITE check, and installation of NGS on all newly produced 7 6 7 air p lanes will pro v ide for an i m proved safety margin over t h e exi s ting, approved in

- service fleet. These changes are also proposed to be done one year after grant of exemption, thereby incorporating ch a nges to m ore airplanes than possible under the existing ti m e li m ited exe m ption.

Request to Waive Publication and Comment:

Given the ti m e

- sensitive nature of t h is request for exe m ption, Boeing res p ectfully requests th a t the FAA waive t h e “ p ublic a tion a n d comment” step in the p rocess for

m aking a final decision on this exe m ption. In addition to the ti m eliness concern, it is the Boeing position that the safety

- a ss oci ated aspe ct s rel a ted to t h is system h a ve been fully vetted in the public foru m as part of the SFAR88 project and the pre v ious ti m e

- li m ited partial exemption (reference exe m ption nu mb er 10767). Expedited treatment is necessary to prevent interr u

ption to 767 production deliveries.

Privileges of the Exemption Outside the United States:

Per 14 CFR 11.81(h), Boeing requests that the privileges of this exemption be extended outside the United States. This extension of privileges is necessary for operations based within foreign countries having bilateral agreements with t he United States accepting FAA 14 CFR part 25 as their airworthiness standards for transport category aircraft.

Conclusion:

Boeing is petitioning for a time

- limited exemption from the provisions of 14 CFR 25.901(c)[25

- 126] and 14 CFR 25.981(a)(3)[25

- 125] a t the system level as they apply to the FQIS installed on the 767

- 300 and 767

- 300F airplanes for the FQPU parts obsolescence change described above. The proposed center fuel tank wire separation, FQIS three tank, 750 hour BITE check, and incorporation of N GS for all 767 production airplanes will further improve fuel tank safety and reduce fleet safety risks

. Exemption is requested to apply through the end of 2019 to provide coverage through the end of the currently committed 767

- 300 and

- 300F production act ivity. The 767

- 2 C, which will be produced beyond 2019, will be fully compliant to these requirements.

S upplemental i nformation

The FAA requested supplemental information from Boeing regarding the estimated date that service instructions would be available

, and an estimated maximum number of airplanes for which the exemption would apply that would be produced prior to the end of 2019. Boeing responded that the currently estimated date for availability of service instructions (Wire Separation Service Bulletin ) is August 24, 2015 and will be no later than December 18, 2015. They stated

, “ T he maximum number of airplane s that would be produced from expiration of the current Exemption No

. 10767 in May 2016 through the end of 2019 (firm orders) is estimated to be 37

– 25 current orders through 2018 with a potential to sell and deliver 12 more freighters in 2019. ”7 Federal Register publication Although the petitioner requested that action on its petition not be delayed for publication in the Federal Register , the FAA found that the petition, if granted, would set a precedent. Therefore, to allow an opportunity for the public to comment on the petition, a summary of it was published in the Federal Register on January 20 , 201 5 ( 80 FR 2774 ). We received one comment from the National Air Traffic Control lers Association (NATCA) National Safety Committee. The
commenter does not agree that the requirements of 14 CFR 11.81(e) for granting an extension to the original exemption have been met and feels the petitioner did not pro vide sound justification showing the ex tension would be in the public interest. NATCA recommended the FAA not grant the extension.

The following paragraphs summarize the relevant in formation from NATCA’s comment. The complete comment is available in Docket No. FAA

- 2012

- 1132 on the FDMS website.

NATCA contends that granting a permanent exemption would not provide a level of safety at least equal to that provided by the rule from which Boeing seeks the exemption and

, therefore

, does not meet the require me nt of § 1 1.81(e) for granting an exemption

. NATCA notes that th e petitioner’s planned changes do not comply with the ignition prevention standards of §§ 25.901(c) and 25.981(a). NATCA believes that the design proposed by the petitioner represents a signi ficant reduction in the level of safety as compared to a design that would fully comply with the rules.

NATCA did not agree with the petitioner’s justification for granting an amendment to the original exemption because it is based primarily on the cost of developing a compliant design and a statement of no adverse effect on safety because of flammability reduction features required by separate regulations. The costs associated with compliance are not a consideration for meeting the level of safety criteria in § 11.81(e) for granting an exemption. The FAA’s 2008 rulemaking required fuel tank flammability reduction in 767 production in addition to a separate ignition prevention requirement in § 25.981. Therefore, the commenter contends the flammability reduct ion system should not be a consideration in the public interest argument when evaluating extending relief from certain ignition source protection proposed in this petition

. NATCA disagrees with the petitioner’s proposal to incorporate a design change that partially complies just prior to the original exemption’s May 17, 2016 expiration date for full compliance

a s a means to provide the public interest required by § 1 1.81( d )

. NATCA also asserts that Boeing has produce d airplanes with a known unsafe condition with regard to FQIS wiring under the original exemption and notes that the petitioner has not provided FAA

- requested service instructions to mitigate the unsafe condition as required by 14 CFR 21.99 and 183.69(d)

. NATCA request ed the FAA provide documenta tion of any enforcement action the FAA is taking against the petitioner for failure to provide the required service instructions

. NATCA requested the FAA provide details

, including documentation of communication

, regarding any corrective actions the FAA an d the petitioner

, as well as other design approval holders

, have established to address unsafe conditions associated with FQIS for the proposed8 airworthiness directive (AD) for the Boeing Model 757 series airplanes and other airplanes

, including the 767, w ith similar FQIS vulnerabilities

. Therefore, NATCA recommend ed the FAA not grant the p etition for extension of the original

e xemption beyond the current expiration date. NATCA requested additional information be included in the d ocket.

The FAA’s a nalysis

The FAA agrees with the petitioner’s statement of public interest for granting the extension of the original exemption from May 17, 2016 until the end of production of 767

- 300 F cargo airplanes

, currently scheduled through December 31, 2019. We partially ag ree with the commenter and have determined granting an extension to the exemption for passenger airplanes past the current limit of May 17, 2016 is not in the public interest. In making this determination

, we considered the comment

, and w e partially agree with the commenter that the extension should not be granted because partial wire separation for one fuel tank would not provide a level of safety equivalent to direct compliance

. If the petitioner intends to continue to offer the 767 passenger airplane for future production and sales, they should account for the resources, time, and cost they would need to bring the airplanes into full compliance in making such arrangements. Boeing has been aware of its obligation to address potential fuel tank ignition sources associated with its FQIS since at least 2002, when it identified those ignition sources as required by Special Federal Aviation Regulation No. 88. The three

- year extension pr ovided by the current time

- limited exemption was adequate to enable Boeing to comply if it intended to do

so. Based on these considerations

, we cannot make a finding that granting a n extension for passenger airplanes is in the public interest.

We partially agree with the commenter’s request that we not include the flammability reduction means (FRM) in our decision to grant the exemption since the system is req uired by separate regulations. The petitioner must incorporate FRM in production to support their U .S. customers’ operating rules in 14 CFR 121.1117(b), therefore installation of FRM alone is not sufficient to justify granting an exemption. However, meeting the existing requirement for fuel tank FRM by inerting the center wing fuel tank on newly produce d 767

- 300F airplanes in combination with reducing the risk of fuel tank ignition through partial wire separation and enhanced maintenance for the FQIS will provide an adequate level of safety for 767 cargo airplane operations. As stated in the original exe mption, c argo airplanes are excluded from the requirement to retrofit FRM into the existing fleet of transport airplanes. I ntroduction of 767

- 300 F cargo airplanes that have FRM and partial wire separation for the center tank FQIS

, which are safer than olde r cargo airplanes that are not required to be retrofitted with FRM

, will increase overall fleet safety and is in the public interest. Additional public interest considerations include Boeing’s ability to offer the 767

- 300F at a price that could result in more sales of airplanes with the safety enhancement of FRM
, stimulating the economy and reducing cargo shipping costs

. We also agree with the
commenter and did not consider the petitioner’s argument that earlier introductio n of airplanes modified with design improvements compared to the requirement of the original exemption should be considered as part of the public interest analysis

. Nevertheless, we do concur with the petitioner’s proposal to incorporate these changes, as they would enhance safety as compared to the existing design

.9 Boeing has confirmed their commitment made in the original exemption to provide the service instructions necessary to support modification to the 767 FQIS on in

- service airplanes in a timely

man ner. They provided a n estimated timeframe of between August 24 and December 18
, 201 5
, for availability of service instructions that will enhance the safety of existing airplanes in the fleet.

The commenter requested the FAA provide additional information r egarding any enforcement action the FAA is taking against the petitioner for non

- compliance to §§ 21.99 and 183.69 ; communications with the petitioner on the subject of the NPRM for the 757 FQIS AD ; a nd information on pending ADs for other models. We have determined these issues are outside the scope of the petition for exemption. Information regarding the 757 FQIS AD is provided in th e docket (FAA

- 2012

- 0187) for that action. We note that the NPRM for the 757 FQIS AD identifies installation of FRM a s a means to effectively mitigate the unsafe condition. Boeing has included FRM on all newly

- delivered 767 airplanes since 201 0
, which mitigates the unsafe condition associated with FQIS on those airplanes.

The original exemption included discussion and pr ovisions for newly manufactured and in

service airplanes. We have included a provision in this partial grant of exemption that clarifies our intent to allow operators to replace FQPUs of in

- service airplanes without requiring operators to bring those airpl anes into full compliance at the expiration of this time

- limited partial exemption

. As discussed earlier, t he FQIS o n in

- service airplanes may be subject to future actions resulting from rulemaking to address unsafe conditions.

The FAA’s decision

In consid eration of the foregoing, I find that granting a partial extension to the original partial grant of exemption for cargo

- only airplanes is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. 40113 and 44701 delegated to me by the Administrator, The Boeing Company is hereby granted a time

- limited exemption from 14 CFR 25.901(c) and 25.981(a)(3) in order to accomplish the following desi gn changes :

1. I ncorpora t e center fuel tank wire separation, wire shielding, and a 750

- hour interval fault check of the center tank FQIS on all newly produced 767

- 300F airplanes; and

2. Optional replacement of the ARINC 429 chip within the FQPU’s IOC cards and t he BITE card for in

- service and production 767

- 200/

- 300/

- 300F/

- 400ER airplanes.

The following conditions and dates apply :

1. The design changes described in item 1 above must be accomplished within one year of the granting of this exemption.

2. Boeing must submi t for FAA approval the service instructions modifying the 767 FQIS as requested by the FAA in accordance with §§ 21.99 and 183.69 by December 18, 2015. This exemption will expire on that date unless Boeing has submitted approvable service instructions.10 3. The expiration date of May 17, 2016

, established in the original exemption continues to apply to 767

- 200/

- 300/

- 400ER airplanes

, subject to condition 2

.

4. Th is time

- limited exemption for newly produced 767

- 300F airplanes expires on December 31, 2019
, subject to condition 2

. Upon the expiration dates of this time

- limited exemption established in items 3 and 4 above for the specifi ed models :

• T he FQIS on all newly

- produc ed 767 series airplanes must comply with §§ 25.901(c)

, Amendment 25

- 46, and 25.981(a)(3)

, Amendment 25

- 102 , or later amendments ; and

• A irplane owners and operators are not required by this exemption to replace FQPUs installed as replacement parts on in

- service airplanes and may continue to replace FQPUs in accordance with each airp lane’s type design approved under the conditions of this exemption.

All conditions of the original exemption apply.

Issued in Renton Washington, on May 4, 2015.

/s/ Jeffrey E. Duven

Jeff rey E. D u ven Manager , T ransport Airplane Directorate Aircraft Certification Service