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[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Rules and Regulations]
[Pages 30147-30151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12556]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 401, 413 and 414

[Docket No.: FAA-2015-1745; Amdt. No(s). 413-11 and 414-3]
RIN 2120-AK58

Electronic Applications for Licenses, Permits, and Safety 
Approvals

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Direct final rule; request for comments.

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SUMMARY: Currently, an application for a license or experimental 
permit, or for a safety approval must be submitted to the FAA in paper 
form. This rule will make the application process more flexible and 
efficient by providing applicants with an option to submit these 
applications to the FAA electronically (either via email or on an 
electronic storage device) rather than submitting a paper application.

DATES: Effective July 27, 2015.
    Submit comments on or before June 26, 2015. If we receive an 
adverse comment or notice of intent to file an adverse comment, we will 
advise the public by publishing a document in the Federal Register 
before the effective date of the final rule. This document may withdraw 
the direct final rule in whole or in part.

ADDRESSES: You may send comments identified by docket number FAA-2015-
1745 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 Shirley McBride, Office of Commercial Space 
Transportation,

[[Page 30148]]

Regulations and Analysis Division, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
7470; email Shirley.McBride@faa.gov.
    For legal questions concerning this action, contact Alex Zektser, 
Office of Chief Counsel, International Law, Legislation, and 
Regulations Division, AGC-250, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
3073; email Alex.Zektser@faa.gov.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The Commercial Space Launch Act of 1984, as amended and re-codified 
at 51 United States Code (U.S.C.) Subtitle V--Commercial Space 
Transportation, ch.509, Commercial Space Launch Activities, 51 U.S.C. 
50901-50923 (the Act), authorizes the Department of Transportation 
(DOT) and thus the FAA, through delegations, to oversee, license, and 
regulate commercial launch and reentry, and the operation of launch and 
reentry sites as carried out by U.S. citizens or within the United 
States. 51 U.S.C. 50904, 50905. Section 50905(a)(2) also authorizes the 
FAA to establish procedures for safety approvals of launch vehicles, 
reentry vehicles, safety systems, processes, services, or personnel 
that may be used to conduct a licensed launch or reentry.

The Direct Final Rule Procedure

    The FAA is issuing this direct final rule without prior notice and 
prior public comment. The Administrative Procedure Act provides that an 
agency may publish a final rule without prior notice and comment if the 
agency for good cause finds that the notice and comment procedure is 
unnecessary.\1\ This rule will not make any substantive changes to the 
requirements that must be met in order to obtain a commercial-space 
license, experimental permit, or safety approval. Rather, this rule 
will simply add an option for applicants for a license, permit, or 
safety approval to submit their applications electronically. 
Accordingly, the FAA does not believe that any adverse comments will be 
filed in response to this rulemaking, and consequently, notice and 
comment is unnecessary.
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    \1\ See 5 U.S.C. 553(b)(B).
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    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. Accordingly, 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 final rule.
    A direct final rule will take effect on a specified date unless the 
FAA receives an adverse comment or notice of intent to file an adverse 
comment within the comment period. An adverse comment explains why a 
rule would be inappropriate, or would be ineffective or unacceptable 
without a change. It may challenge the rule's underlying premise or 
approach. Under the direct final rule process, we do not consider the 
following types of comments to be adverse:
    (1) A comment recommending another rule change, in addition to the 
change in the direct final rule at issue. We consider the comment 
adverse, however, if the commenter states why the direct final rule 
would be ineffective without the change.
    (2) A frivolous or insubstantial comment.
    If we receive an adverse comment or notice of intent to file an 
adverse comment, we will advise the public by publishing a document in 
the Federal Register before the effective date of the final rule. This 
document may withdraw the direct final rule in whole or in part. If we 
withdraw a direct final rule because of an adverse comment, we may 
incorporate the commenter's recommendation into another direct final 
rule or may publish a notice of proposed rulemaking.
    If we do not receive an adverse comment or notice of intent to file 
an adverse comment, we will publish a confirmation document in the 
Federal Register, generally within 15 days after the comment period 
closes. The confirmation document tells the public the effective date 
of the rule.
    See the ``Additional Information'' section for information on how 
to comment on this direct final rule and how the FAA will handle 
comments received. The ``Additional Information'' section also contains 
related information about the docket, privacy, and the handling of 
proprietary or confidential business information. In addition, there is 
information on obtaining copies of related rulemaking documents.

I. Background

    The FAA currently issues licenses for the launch of a launch 
vehicle, the operation of a launch site, the reentry of a reentry 
vehicle, and the operation of a reentry site.\2\ The FAA also issues 
experimental permits that allow a person to launch or reenter a 
reusable suborbital rocket.\3\ Finally, the FAA issues safety approvals 
that may be used in conducting a licensed launch or reentry.\4\
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    \2\ See 14 CFR 413.3.
    \3\ See 14 CFR 437.5.
    \4\ See 14 CFR 414.1.
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    To obtain a license, experimental permit, or safety approval, an 
applicant must first submit an application in writing to the FAA.\5\ 
Currently, this application may not be submitted electronically, but 
must instead be mailed to the FAA on paper and in duplicate.\6\
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    \5\ 14 CFR 413.7(a) and 414.11(a).
    \6\ Id. See also Memorandum to Kenneth Wong from Rebecca 
MacPherson, Assistant Chief Counsel for Regulations (Nov 30, 2011) 
(concluding that the current regulations do not allow the FAA to 
accept applications electronically). http://www.faa.gov/about/office_org/headquarters_offices/agc/pol_adjudication/agc200/interpretations/.
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    The FAA has determined that this paper-based submission process is 
unduly burdensome because an electronically-submitted application would 
provide the FAA with the same information as a paper application. In 
addition, the Government Paperwork Elimination Act (GPEA) requires 
that, when practicable, a Federal agency must provide the public with 
an option to transact with the agency electronically.\7\
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    \7\ Office of Management and Budget, Implementation of the 
Government Paperwork Elimination Act, http://www.whitehouse.gov/omb/fedreg_gpea2 (explaining implementation of Pub. L. 105-277, sec. 
1704).
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    Accordingly, this rulemaking will relieve the burden imposed by the 
FAA's current paper-submission application processes and bring the 
FAA's application processes into compliance with GPEA by providing an 
option for license, experimental permit, and safety approval applicants 
to submit their applications electronically.

II. Discussion of the Direct Final Rule

    This rule amends Sec. Sec.  413.7 and 414.11 to allow applicants 
for a license, experimental permits or safety approval to file their 
applications to the FAA by paper or by electronic means. The new 
electronic filing options provided by this rule will be: (1) Simply 
emailing the application to the FAA; or (2) providing the application 
to the FAA on a physical electronic storage device rather than 
submitting the application in paper form. Under this rule, ``physical 
electronic storage'' is an electronic storage device that can store 
electronic documents and files. Examples of

[[Page 30149]]

physical electronic storage devices include optical discs, memory 
cards, USB flash drives, and external hard drives.\8\
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    \8\ This list of examples is not intended to be exhaustive.
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    The FAA emphasizes that this rule will not make electronic 
submission of applications mandatory. Thus, applicants who wish to 
submit their applications in paper form will be able to continue doing 
so under this rule. However, applicants who prefer to submit their 
applications electronically will now be able to do so instead of having 
to submit those applications in paper form.
    To ensure the authenticity and security of electronically-submitted 
applications, this direct final rule specifies certain requirements for 
electronically-submitted applications. For an application submitted via 
email, the application will have to satisfy the following criteria. 
First, the application must be sent via email as an email attachment to 
the following email address: ASTApplications@faa.gov. Second, the email 
to which the application is attached must be sent from an email address 
controlled by the person who signed the application or by an authorized 
representative of the applicant. The FAA anticipates that this will 
usually be that person's official work-related email address. Finally, 
the application must be provided in a format that cannot be altered, 
such as a PDF document or a read-only Word file.
    An application submitted via a physical electronic storage device 
will be subject to the following criteria. First, the submission 
package must include a cover letter identifying each document and file 
that is being submitted on the physical electronic storage device. The 
cover letter must be in paper form and it must be signed either by the 
person who signed the application or by an authorized representative of 
the applicant. Second, the physical electronic storage device must be 
submitted in a format that does not allow the contents of the device to 
be altered. For example, the application could be submitted on a write-
protected USB flash drive or a CD-ROM disk that does not allow 
additional data to be written onto the disk.
    Finally, the physical electronic storage device and cover letter 
must either be: (1) Hand-delivered to an authorized FAA representative; 
or (2) mailed to the FAA's Office of Commercial Space Transportation 
(AST). If opting to mail the application to AST, the applicant must use 
the same mailing address that he or she would use to submit a paper 
application. This address is: Federal Aviation Administration, 
Associate Administrator for Commercial Space Transportation, Room 331, 
800 Independence Avenue SW., Washington, DC 20591. Attention: 
Application Review.

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, the 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 direct final rule.
    Department of Transportation Order DOT 2100.5 prescribes policies 
and procedures for simplification, analysis, and review of regulations. 
If the expected cost impact is so minimal that a proposed or final rule 
does not warrant a full evaluation, this order permits that a statement 
to that effect and the basis for it be included in the preamble if a 
full regulatory evaluation of the cost and benefits is not prepared. 
Such a determination has been made for this direct final rule. The 
reasoning for this determination follows:
    This direct final rule will permit, but not require, an application 
for a license, an experimental permit, or a safety approval to be 
submitted electronically to the FAA rather than by mailing in a paper 
application. This will make the application process more efficient and 
flexible.
    This direct final rule does not impose any incremental costs 
because it will provide an additional method of submitting applications 
to the FAA. Therefore, the expected outcome will be a minimal impact 
with positive net benefits, and a full regulatory evaluation was not 
prepared. The FAA requests comments with supporting justification about 
the FAA determination of minimal impact.
    The FAA has, therefore, determined that this direct final rule is 
not a ``significant regulatory action'' as defined in section 3(f) of 
Executive Order 12866, and is not ``significant'' as defined in DOT's 
Regulatory Policies and Procedures.

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-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.
    This direct final rule does not impose any incremental costs 
because it will provide an additional method of submitting applications 
to the FAA.
    If an agency determines that a rulemaking will not result in a 
significant economic impact on a substantial number of small entities, 
the head of the agency may so certify under

[[Page 30150]]

section 605(b) of the RFA. 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.

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 direct final rule 
and determined that it will have only a domestic impact and therefore 
no effect on international trade.

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 direct 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 direct final rule.

F. International Compatibility and Cooperation

    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.

G. 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 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 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. 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.

V. 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 the rulemaking 
action in this document. The most helpful comments reference a specific 
portion of the rulemaking action, 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. Before acting on this rulemaking 
action, the FAA will consider all comments it receives on or before the 
closing date for comments. The FAA will consider comments filed after 
the comment period has closed if it is possible to do so without 
incurring expense or delay. The agency may change this rulemaking 
action in light of the comments it receives.

B. Availability of Rulemaking Documents

    An electronic copy of rulemaking documents may be obtained from 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/.
    Copies may also be obtained 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. 
Commenters must identify the docket or amendment number of this 
rulemaking.
    All documents the FAA considered in developing this rulemaking 
action, including economic analyses and technical reports, may be 
accessed from the Internet through the Federal eRulemaking Portal 
referenced in item (1) above.

List of Subjects

14 CFR Part 401

    Organization and functions (Government agencies), Space 
transportation and exploration.

14 CFR Part 413

    Confidential business information, Human space flight, Reporting 
and recordkeeping requirements, Space safety, Space transportation and 
exploration.

[[Page 30151]]

14 CFR Part 414

    Airspace, Aviation Safety, Space transportation and exploration.

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends chapter III of title 14, Code of Federal 
Regulations as follows:

PART 401--ORGANIZATION AND DEFINITIONS

0
1. The authority citation for part 401 continues to read as follows:

    Authority: 51 U.S.C. 50901-50923.

0
2. In Sec.  401.5, add a definition in alphabetical order for physical 
electronic storage to read as follows:

Sec.  401.5  Definitions.

* * * * *
    Physical electronic storage means a physical device that can store 
electronic documents and files including but not limited to an optical 
disc, a memory card, a USB flash drive, or an external hard drive.
* * * * *

PART 413--LICENSE APPLICATION PROCEDURES

0
3. The authority citation for part 413 continues to read as follows:

    Authority: 51 U.S.C. 50901-50923.

0
4. In Sec.  413.7, revise paragraph (a) to read as follows:

Sec.  413.7  Application.

    (a) An applicant must make an application in writing and in 
English. The applicant must file the application with the Federal 
Aviation Administration either by paper, by use of physical electronic 
storage, or by email in the following manner:
    (1) For applications submitted on paper, an applicant must send two 
copies of the application to the Federal Aviation Administration, 
Associate Administrator for Commercial Space Transportation, Room 331, 
800 Independence Avenue SW., Washington, DC 20591. Attention: 
Application Review.
    (2) For an application submitted by use of physical electronic 
storage, the applicant must either mail the application to the address 
specified in paragraph (a)(1) of this section or hand-deliver the 
application to an authorized FAA representative. The application and 
the physical electronic storage containing the application must also 
satisfy all of the following criteria:
    (i) The application must include a cover letter that is printed on 
paper and signed by the person who signed the application or by an 
authorized representative of the applicant;
    (ii) The cover letter must identify each document that is included 
on the physical electronic storage; and
    (iii) The physical electronic storage must be in a format such that 
its contents cannot be altered.
    (3) For an application submitted by email, an applicant must send 
the application as an email attachment to ASTApplications@faa.gov. The 
application and the email to which the application is attached must 
also satisfy the following criteria:
    (i) The email to which the application is attached must be sent 
from an email address controlled by the person who signed the 
application or by an authorized representative of the applicant; and
    (ii) The application must be in a format that cannot be altered.
* * * * *

PART 414--SAFETY APPROVALS

0
5. The authority citation for part 414 continues to read as follows:

    Authority: 51 U.S.C. 50901-50923.

0
6. In Sec.  414.11, revise paragraph (a) to read as follows:

Sec.  414.11  Application.

    (a) An applicant must make an application in writing and in 
English. The applicant must file the application with the Federal 
Aviation Administration either by paper, by use of physical electronic 
storage, or by email in the following manner:
    (1) For an application submitted on paper, an applicant must send 
two copies of the application to the Federal Aviation Administration, 
Associate Administrator for Commercial Space Transportation, Room 331, 
800 Independence Avenue SW., Washington, DC 20591. Attention: 
Application Review.
    (2) For an application submitted by use of physical electronic 
storage, the applicant must either mail the application to the address 
specified in paragraph (a)(1) of this section or hand-deliver the 
application to an authorized FAA representative. The application and 
the physical electronic storage containing the application must also 
satisfy all of the following criteria:
    (i) The application must include a cover letter that is printed on 
paper and signed by the person who signed the application or by an 
authorized representative of the applicant;
    (ii) The cover letter must identify each document that is included 
on the physical electronic storage; and
    (iii) The physical electronic storage must be in a format such that 
its contents cannot be altered.
    (3) For an application submitted by email, an applicant must send 
the application as an email attachment to ASTApplications@faa.gov. The 
application and the email to which the application is attached must 
also satisfy the following criteria:
    (i) The email to which the application is attached must be sent 
from an email address controlled by the person who signed the 
application or by an authorized representative of the applicant; and
    (ii) The application must be in a format that cannot be altered.
* * * * *

    Issued under authority provided by 49 U.S.C. 106(f), and 51 
U.S.C. 50904-50905 in Washington, DC, on April 30, 2015.
Michael P. Huerta,
Administrator.
[FR Doc. 2015-12556 Filed 5-26-15; 8:45 am]
 BILLING CODE 4910-13-P
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