30054 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

1 64 FR 33142; June 21, 1999. 

2 66 FR 41088; August 6, 2001. 

3 66 FR 53281; October 19, 2001. 

4A copy of the ARAC’s recommendations can be 

found at http://www.faa.gov/regulations_policies/

rulemaking/committees/arac/. 

5 71 FR 70254; December 1, 2006. 

6 72 FR 8641; February 27, 2007. 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 43, 91 and 145 

[Docket No. FAA–2006–26408; Notice No. 

12–03] 

RIN 2120–AJ61 

Repair Stations 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This action would amend the 

regulations for repair stations by 

revising the system of ratings, the repair 

station certification requirements, and 

the regulations on repair stations 

providing maintenance for air carriers. 

This action is necessary because many 

portions of the existing repair station 

regulations do not reflect current repair 

station aircraft maintenance and 

business practices, or advances in 

aircraft technology. These changes 

would modernize the regulations to 

keep pace with current industry 

standards and practices. 

DATES: Send your comments on or 

before August 20, 2012. 

ADDRESSES: You may send comments 

identified by Docket Number FAA– 

2006–26408 using any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30; U.S. Department of 

Transportation, 1200 New Jersey 

Avenue SE., Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE., Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: The FAA will post all 

comments it receives, without change, 

to http://www.regulations.gov, including 

any personal information the 

commenter provides. Using the search 

function of the docket Web site, anyone 

can find and read the electronic form of 

all comments received into any FAA 

dockets, including the name of the 

individual sending the comment (or 

signing the comment for an association, 

business, labor union, etc.). DOT’s 

complete Privacy Act Statement can be 

found in the Federal Register published 

on April 11, 2000 (65 FR 19477–19478), 

as well as at http://DocketsInfo.dot.gov. 

Docket: Background documents or 

comments received may be read at 

http://www.regulations.gov at any time. 

Follow the online instructions for 

accessing the docket or go to the Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

proposed rule contact John Goodwin, 

FAA, Repair Station Branch (AFS–340), 

800 Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

385–6417; facsimile (202) 385–6474; 

email John.J.Goodwin@faa.gov. For legal 

questions concerning this proposed rule 

contact Edmund Averman, FAA, Office 

of the Chief Counsel (AGC–210), 800 

Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

267–3147; facsimile (202) 267–5106; 

email Ed.Averman@faa.gov. 

SUPPLEMENTARY INFORMATION: Later in 

this preamble under the Additional 

Information section, we discuss how 

you can comment on this proposal and 

how we will handle your comments. 

Included in this discussion is related 

information about the docket, privacy, 

and the handling of proprietary or 

confidential business information. We 

also discuss how you can get a copy of 

related rulemaking documents. 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, section 106, describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. 

This rulemaking is promulgated 

under the authority described in title 49, 

subtitle VII, part A, subpart III, section 

44701, General requirements, and 

Section 44707, Examining and rating air 

agencies. Under section 44701, the FAA 

may prescribe regulations and standards 

in the interest of safety for inspecting, 

servicing, and overhauling aircraft, 

aircraft engines, propellers, and 

appliances. It may also prescribe 

equipment and facilities for, and the 

timing and manner of, inspecting, 

servicing, and overhauling these items. 

Under section 44707, the FAA may 

examine and rate repair stations. 

This regulation is within the scope of 

section 44701 since it establishes new 

regulations for a repair station to have 

permanent housing for all its facilities, 

equipment, materials, and personnel. 

This regulation is within the scope of 

section 44707 since it revises the system 

of ratings for repair stations and 

specifies those instances when the FAA 

may deny the issuance of a repair 

station certificate, especially when a 

previously held certificate has been 

revoked. 

I. Background 

In 1989, the FAA held four public 

meetings to provide a forum for the 

public to comment on possible revisions 

to the rules governing repair stations. 

After considering the comments and 

data collected from these meetings, the 

FAA published a notice of proposed 

rulemaking in June 1999 (1999 NPRM).1

The 1999 NPRM proposed significant 

changes to part 145 because the existing 

language was no longer appropriate and 

had become increasingly difficult to 

administer. 

In August 2001, the FAA published a 

final rule with request for comments 

and direct final rule with request for 

comments; final rule.2 This final rule 

revised most of part 145 as proposed in 

the 1999 NPRM. However, it did not 

adopt the proposed revised repair 

station ratings and the quality assurance 

system due to the volume of negative 

comments received on the FAA’s 

proposed changes to these areas. 

On October 19, 2001, the FAA tasked 

the Aviation Rulemaking Advisory 

Committee (ARAC) to address ratings 

and quality assurance for repair 

stations.3 ARAC provided its 

recommendations in May 2002.4

On December 1, 2006, the FAA 

published the NPRM titled ‘‘Repair 

Stations’’ (2006 NPRM) that addressed 

ARAC’s recommendations.5 The 

original comment period was scheduled 

to close on March 1, 2007. However, the 

FAA received a request from the 

Aeronautical Repair Station Association 

to extend the comment period. In a 

notice published on February 27, 2007, 

the FAA granted a 45-day comment 

period extension to April 16, 2007.6 The 

2006 NPRM proposed the following 

changes to part 145: 

• The system of ratings and classes 

would be revised significantly, 

including the creation of an avionics 

rating and the end of the issuance of 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30055 

7 74 FR 21287, May 7, 2009. 

limited ratings (to be replaced by the 

issuance of limitations to the rating a 

repair station holds). 

• Each repair station would set up 

and maintain a capability list of all 

articles for which it is rated. The list 

would identify each article by 

manufacturer and the type, make, 

model, category, or other nomenclature 

designated by the article’s manufacturer. 

A repair station with an avionics or a 

component rating would also be 

required to organize its lists by category 

of the article. 

• Each repair station would set up a 

quality system that includes an internal 

evaluation that reviews the complete 

repair station yearly. 

• Applicants for a repair station 

certificate would include a letter of 

compliance as part of their application. 

• Each repair station would be 

required to provide permanent housing 

for its facilities, equipment, materials, 

and personnel. 

• Each repair station would be 

required to designate a chief inspector. 

• The FAA would use certification 

from an authority ‘‘acceptable to the 

FAA’’ as a basis for issuing a certificate 

to a person located outside the United 

States. 

• The FAA would identify reasons it 

could use to deny the issuance of a 

repair station certificate. 

The FAA received more than 150 

public comment submissions to the 

2006 NPRM. While there was general 

support for revising the repair station 

rules, several commenters asked the 

FAA to withdraw the proposal. Many 

other commenters expressed concerns 

related to the proposed ratings system 

(particularly the proposed avionics 

rating), the capability list, quality 

system, letter of compliance, chief 

inspector, housing and facilities, and 

the FAA’s denial of a repair station 

certificate. 

On May 7, 2009, the FAA withdrew 

the 2006 NPRM because it did not 

adequately address the current repair 

station operating environment, which 

had changed significantly since the 

recommendations developed in 2001 by 

ARAC.7 The FAA also noted that the 

withdrawal would give the FAA time to 

thoroughly review and properly address 

these substantial operating environment 

changes and the many issues raised by 

the commenters. 

The withdrawal notice stated that the 

FAA had started rulemaking to update 

and revise the regulations for repair 

stations to more fully address the 

significant changes in the repair station 

business model. This NPRM is the result 

of those efforts. 

General Discussion of the Proposal 

There are three major areas that this 

proposal will address: 

• The system of ratings. 

• The certification requirements. 

• Repair stations providing 

maintenance for air carriers. 

In addition, there are several other 

areas in part 145 that this NPRM will 

address. These are discussed in detail in 

an ‘‘Other Changes’’ section in the 

‘‘Discussion of the Proposed Regulatory 

Requirements’’ portion of this preamble. 

In the 2006 NPRM, the FAA proposed 

to require a formal quality system for all 

repair stations. While the FAA 

continues to believe that all repair 

stations should have a formal quality 

system to improve safety, the agency did 

not include such a requirement in this 

proposal. The FAA is in the process of 

introducing Safety Management 

Systems (SMS) rules, and it is 

anticipated that a future SMS rule will 

cover those repair stations operating 

under part 145. If the agency includes 

a quality system requirement in the final 

rule resulting from this proposal, a 

possibility exists that such systems 

would have to be modified once an SMS 

rule is formalized. The FAA does not 

believe this would be an efficient use of 

repair station resources based on the 

unknown differences that may arise. 

Total Benefits and Costs of This Rule 

The total costs of this proposal would 

be relatively small ($14.493 million over 

a 10-year period, spread amongst 

approximately 5,000 repair stations), but 

it is difficult to quantify the benefits. We 

believe, however, that the potential 

benefits, which derive in part from (1) 

Giving the FAA authority to (a) deny a 

repair station certificate to an applicant 

whose past performance resulted in a 

revocation, and (b) revoke all FAAissued certificates of any person who 

makes fraudulent or intentionally false 

entries or records; (2) defining what 

operations specifications consist of and 

providing a well-defined process for 

both industry and the FAA to amend 

them; and (3) updating the ratings 

system, justify the costs of the proposed 

rule. 

The current rule provides that, with 

certain unrelated restrictions, an 

applicant who meets the requirements 

of the rule is entitled to a repair station 

certificate regardless of a past regulatory 

non-compliance history. Because of at 

least one incident where the FAA 

revoked a repair station certificate for 

serious maintenance-related safety 

violations, and a key management 

official from that repair station shortly 

thereafter obtained a new repair station 

certificate under which improper 

maintenance resulted in a fatal accident, 

the National Transportation Safety 

Board (NTSB) recommended that a 

certificate applicant’s past performance 

should be a consideration in 

determining whether a new certificate 

should be issued. That criteria currently 

applies to air carrier certificate 

applicants. The FAA agrees with the 

NTSB, and is proposing rules similar to 

those for air carriers in the hopes of 

preventing accidents like the one just 

described. 

Although the current rule provides 

that no person may operate without, or 

in violation of, FAA-issued operations 

specifications, it does not define the 

term or explain what they consist of. 

Much confusion prevails within the 

repair station community and the FAA 

whether any or all of a repair station’s 

operations specifications are considered 

part of its certificate and therefore 

entitled to NTSB review of any FAAmandated changes to them. This 

proposed rule would make clear what 

operations specifications are and which 

ones are part of a repair station’s 

certificate. It would also provide 

detailed processes for both FAAinitiated and repair station-initiated 

amendments to them. This would 

benefit both the repair station 

community and the FAA by providing 

a degree of certainty where currently 

there is only confusion. 

In addition, the current ratings system 

dates to the 1930’s and 1940’s, and does 

not adequately address the way current 

aircraft are constructed. This hampers 

the FAA’s ability to appropriately and 

consistently issue ratings, and it 

impedes repair stations’ ability to 

accurately describe the work they 

perform. The repair station community 

and the FAA have struggled, and 

continue to struggle, with the 

application of current technology and 

business practices to an antiquated rule. 

The proposed rule would accommodate 

current advanced technologies and 

provide regulatory flexibility to 

accommodate future technological 

development. 

1. System of Ratings 

Part 145’s system of ratings does not 

address current technology or industry 

practices. It is not dynamic and cannot 

adapt as new technologies are 

introduced. It is also not defined clearly 

and is open to inconsistent 

interpretation and application. These 

failings have resulted in repair stations 

having a variety of ratings to perform 

the same work. This system is confusing 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30056 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

to repair station operators and their 

customers, and presents increasingly 

difficult certificate management 

challenges to the FAA. 

The rating changes proposed in the 

2006 NPRM generated many comments. 

Most of those commenters were 

concerned that the proposed system of 

ratings would require a repair station to 

get FAA approval before changing or 

adding to the proposed required 

capability list. This proposal would not 

require a capability list, but would 

revise the capability list recording 

requirements for those repair stations 

who choose to use one. This is a 

potentially marked change for repair 

stations with class ratings that do not 

currently have a capability list of the 

items they maintain. 

Under this proposal, the system of 

ratings would be reduced from eight 

ratings to five ratings. The ratings 

definitions would be revised to clearly 

indicate the type of work that a repair 

station is authorized to perform. A 

comparison of the proposed ratings with 

the current ratings follows: 

Current Proposed 

Airframe Class: Airframe Category: 

1. Composite Small. 1. Aircraft certificated under part 23 or 27. 

2. Composite Large. 2. Aircraft certificated under part 25 or 29. 

3. All-Metal Small. 3. All other aircraft. 

4. All-Metal Large. 

Powerplant Class: Powerplant Category: 

1. Reciprocating Engines of 400 HP or less. 1. Reciprocating engines. 

2. Reciprocating Engines of more than 400 HP. 2. Turbine engines. 

3. Turbine Engines. 3. Auxiliary Power Units. 

4. All other powerplants. 

Propeller Class: Propeller Category: 

1. All Fixed and Ground-Adjustable. 1. Fixed-pitch and ground-adjustable propellers. 

2. All other propellers. 2. Variable-pitch propellers. 

3. All other propellers. 

Radio Class: Component. 

1. Communication. 

2. Navigation. 

3. Radar. 

Instrument Class: Component. 

1. Mechanical. 

2. Electrical. 

3. Gyroscopic. 

4. Electronic. 

Accessory Class: Component. 

1. Mechanical. 

2. Electrical. 

3. Electronic. 

Limited Rating Specialized Service. Specialized Service. 

Limited Ratings (§ 145.61(b) lists 12 possible limited ratings). Eliminated. 

2. Certification Requirements 

The 2006 NPRM proposed that the 

FAA could deny an application for a 

repair station certificate if the applicant 

previously held a repair station 

certificate that had been revoked or if 

the applicant or certain key individuals 

who would exercise control over the 

new repair station had materially 

contributed to the circumstances that 

resulted in a prior repair station 

certificate revocation action. This 

proposal was similar to the authority 

contained in part 119 authorizing the 

FAA to deny applications for air carrier 

and commercial operator certificates. 

The commenters who opposed this 

proposal stated it was too open-ended 

and that it would be impossible to 

maintain a tracking list of disqualifying 

individuals. 

While the FAA understands the 

commenters’ concerns, the agency 

believes this requirement should be 

implemented. The FAA will add a 

question to the repair station 

application asking whether the 

applicant has a repair station certificate 

currently being revoked, or previously 

held a repair station certificate that was 

revoked as described in § 145.1051(e). 

The FAA notes that denial is not 

automatic. If the agency were to deny a 

certificate to an applicant under the 

proposed rule, the affected person could 

appeal that denial under the procedures 

provided in 14 CFR part 13. 

The FAA is also proposing to clarify 

the certification requirements in 

§ 145.51(b) on the equipment, 

personnel, technical data, and housing 

and facilities that must be in place for 

inspection at the time of certification or 

rating approval by the FAA. There has 

been much confusion about how a 

repair station can meet these 

requirements by contract. The FAA is 

proposing language to clarify that the 

contract applies only to ownership, and 

not to the demonstration phase of 

certification. If a repair station does not 

permanently possess these items, it 

must be able to demonstrate to the FAA 

that it has made arrangements with 

another person to provide such items 

whenever they are needed to perform 

work, and it must display these items 

and all associated lease agreements 

during certification. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30057 

3. Repair Stations Providing 

Maintenance for Air Carriers 

In response to the 2006 NPRM, 

several repair stations that provide 

maintenance for air carriers raised 

concerns on the information that air 

carriers must provide. Currently, 

§ 145.205 states a repair station working 

for an air carrier must follow the 

carrier’s ‘‘program and applicable 

sections of its maintenance manual.’’ 

Repair stations that provide such work 

stated that the term ‘‘applicable 

sections’’ causes confusion because it is 

subjective and vague. They point out 

that air carriers, air operators, and even 

the FAA’s own inspectors interpret this 

term differently. 

In this NPRM, the FAA proposes 

language to clarify that when a repair 

station performs work as a maintenance 

provider to an air carrier, the repair 

station must perform that work in 

accordance with the maintenance 

instructions provided by the air carrier 

or air operator. 

Line maintenance will be authorized 

as a limitation to an airframe rating. The 

regulations regarding line maintenance 

authorization will be deleted. 

II. Discussion of the Proposed 

Regulatory Requirements 

1. Transition 

The FAA recognizes that the 

proposals in this NPRM represent a 

major revision to part 145. There would 

be many new and enhanced 

requirements as well as an in-depth 

change to the ratings system. These 

changes would require the revision of 

several existing repair station 

documents. These document changes 

would have to be reviewed and 

accepted by the FAA. This could then 

lead to delays in granting repair stations 

the approvals they need to operate. 

To provide for the transition of 

current repair stations and at the same 

time accommodate the continued 

receipt of new applications, the FAA is 

proposing to retain the current 

regulations appended with the proposed 

regulations for 24 months. The current 

language would be retained with its 

current subpart lettering, A through E, 

and be revised only where necessary to 

accommodate the transition. The new 

rule would be located in new subparts, 

lettered F through J. Thus, the current 

Subpart B Certification § 145.51, 

Application for Certificate, would coexist with a Subpart G Certification 

§ 145.1051, Application for Certificate, 

during the 24-month transition period. 

The FAA anticipates that the final rule, 

if adopted, would become effective 60 

days after publication. 

Repair stations certificated before the 

effective date of the final rule would be 

able to continue to operate under the 

current regulations. They would have 24 

months after the effective date of the 

final rule to show compliance with the 

proposed regulations by developing 

associated documents and submitting an 

FAA Form 8310–3, Application for 

Repair Station Certificate and/or Rating. 

New applicants would be required to 

comply with subparts F through J upon 

the effective date of the final rule. Any 

repair station applying for a change to 

its repair station certificate requiring a 

new application, as provided for in the 

current rule, would be required to 

comply with subparts F through J as a 

condition of approval of the certificate 

change. 

All repair stations certificated before 

the effective date of the final rule would 

have to timely apply for certification 

under the proposed rules if they intend 

to continue to operate without 

interruption. Repair stations are 

cautioned that waiting until later in the 

24-month transition period may 

increase the risk that unforeseen 

circumstances might result in the repair 

station not having an active certificate 

until such time as the FAA can review 

the submitted documents and provide 

the repair station with a new repair 

station certificate. 

All certificated repair stations would 

have to be in compliance with the 

provisions of subparts F through J no 

later than 24 months after the effective 

date of the rule. At that time, current 

subparts A through E would be removed 

and reserved. The rules would continue 

to carry the 1xxx (one thousand series) 

numbers to be consistent with any 

guidance or other documentation that is 

issued during the 24-month transition 

period. 

To address the transition in the 

current regulations, the FAA proposes 

to revise subparts A through C as 

follows: 

• Section 145.1(a) would state that 

subparts A through E will expire and be 

reserved 24 months after the effective 

date of the final rule. 

• Section 145.1(b) would be changed 

to direct that subparts A through E 

apply to repair stations certificated 

before the effective date of the final rule 

until they are certificated under new 

subparts F through J or 24 months from 

the effective date of the rule. 

• Section 145.1(c) would be revised 

to direct that a repair station certificated 

before the effective date of the rule 

would have to follow subparts A 

through E until it complies with 

subparts F through J. 

• Section 145.51(a) would be changed 

to direct applications to be made in 

accordance with new § 145.1051. 

• Section 145.53(a) would be revised 

to reflect that a certificate issued under 

subparts A through E would be valid for 

no longer than 24 months after the 

effective date of the final rule. 

• Section 145.55(a) would be revised 

to state that a certificate issued to a 

repair station located outside the United 

States would not be valid 24 months 

after the effective date of the final rule. 

• Section 145.55(b) would be revised 

to state that a certificate issued to a 

repair station located outside the United 

States may be renewed but not beyond 

24 months from the effective date of the 

final rule. 

• In § 145.55(c)(1), the reference to 

§ 145.51 for the application procedures 

would be changed to § 145.1051. 

• In § 145.57, the reference to 

§ 145.51 for the procedures to be 

followed by a new owner would be 

changed to § 145.1051. 

• In § 145.105(b), the reference to 

§ 145.103 for change in housing would 

be changed to § 145.1103. 

2. System of Ratings 

The FAA proposes to revise the 

ratings and classes that may be issued 

to certificated repair stations. Under this 

proposal, the system of ratings would be 

reduced from eight ratings to five 

ratings. The ratings definitions would be 

revised to clearly indicate the type of 

work that a repair station is authorized 

to perform under each rating. 

a. Airframe Rating (Current § 145.59(a)/ 

Proposed § 145.1059(a)) 

Currently, the FAA may issue a repair 

station an Airframe rating with any of 

four class ratings: Classes 1, 2, 3, and 4. 

These classes are based on aircraft 

weight (large or small (as defined in 14 

CFR 1.1)) and construction (composite 

or all-metal). 

The use of construction as a basis for 

determining the class rating system no 

longer reflects the technology used in 

building today’s aircraft. For example, at 

the time the Airframe rating was 

created, the aviation industry commonly 

referred to aircraft made from a 

combination of wood, fabric, and metal 

materials as aircraft with a ‘‘composite’’ 

construction. Today, the term 

‘‘composite’’ construction refers to the 

use of carbon-carbon compounds and 

advanced polymers (which is fast 

becoming the standard in the industry). 

These types of materials were not even 

envisioned when the Airframe rating 

was created. 

In addition, airframe manufacturers 

often use a mix of materials in current 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30058 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

aircraft construction. An all-composite 

or all-metal construction of an airframe 

is no longer the standard design. For 

example, an airframe could be metal 

while certain portions, such as control 

surfaces and fairings, are composite 

materials. 

The continued use of weight as a basis 

for determining the class rating is also 

problematic. Historically, the FAA and 

the aviation industry used the weight 

classification of small and large aircraft 

to distinguish aircraft used in 

commercial air carrier service from 

those used in general aviation. 

Commercial operators typically used 

aircraft weighing over 12,500 pounds, 

while general aviation operators 

typically used smaller aircraft. This 

distinction also reflected the relative 

complexity of the aircraft. Today, 

however, aircraft weight reflects neither 

the complexity nor the intended use of 

an aircraft. 

Therefore, it is clear that the Airframe 

rating needs to be updated. The FAA 

initially considered trying to define the 

term ‘‘composite.’’ This was difficult, at 

best. More importantly, any definition 

developed today may soon become 

outdated by further technological 

advances. The FAA has determined that 

a better approach is to have the 

underlying certification rules dictate the 

appropriate rating. 

The FAA proposes to remove classes 

from the Airframe rating and group the 

aircraft that were previously covered by 

these classes in accordance with their 

certification standards under parts 23, 

25, 27, and 29. All other aircraft not 

certificated under these parts would be 

in a separate category ‘‘all other 

aircraft.’’ 

The FAA believes that grouping the 

Airframe rating into categories 

according to the airworthiness 

certification standards would better 

define the technology of the aircraft and 

relieve confusion. The proposed 

structure of the Airframe rating is: 

• Category 1: All aircraft certificated 

under parts 23 and 27. 

• Category 2: All aircraft certificated 

under parts 25 and 29. 

• Category 3: All other aircraft. 

The purpose of grouping airframes 

into categories 1 and 2 is to include 

aircraft that were originally certificated 

under their respective airworthiness 

standards. The third category would 

capture aircraft that were originally 

certificated under Civil Aeronautical 

Rules (CARs), Civil Aeronautical 

Bulletins (CABs) and/or Special 

Aeronautical Information Bulletins 

(SAIBs). This system of airframe rating 

categories would also capture future 

aircraft designs. 

Category 3 would capture aircraft that 

are not included in categories 1 and 2. 

This would include aircraft such as 

unmanned aircraft systems, light sport 

aircraft, and manned balloons. This 

would also provide a category for other 

aircraft currently under design status 

and not yet certified under established 

certification regulations. 

An application for the proposed 

Airframe rating would have to include 

a list of the make, model, or series of all 

aircraft that the repair station intends to 

maintain. This is a marked change for 

current airframe class rated repair 

stations. 

The FAA also proposes to use the 

term ‘‘category’’ as a replacement for the 

term ‘‘class.’’ The term ‘‘class’’ has been 

used for so many years to mean a 

particular group of aircraft in part 145 

that it seems impractical to try to apply 

it in a different context. 

b. Powerplant Rating (Current 

§ 145.59(b)/Proposed § 145.1059(b)) 

The current Powerplant rating has 

three classes: Class 1—Reciprocating 

engines of 400 horsepower or less, Class 

2—Reciprocating engines of more than 

400 horsepower, and Class 3—Turbine 

engines. 

When the FAA established the current 

Powerplant rating, reciprocating radial 

engines that produced more than 400 

horsepower powered nearly all large 

aircraft. These engines differed 

substantially from the horizontallyopposed reciprocating engines with less 

than 400 horsepower that manufacturers 

used to power general aviation aircraft. 

In 1941 (which was when the repair 

station ratings were originally 

developed), horsepower evaluations 

were the most common of the methods 

available to determine the complexity of 

engines. 

Today, this methodology is antiquated 

and adds no value to the Powerplant 

rating. It is possible for small 

horizontally-opposed reciprocating 

engines to produce more than 400 

horsepower. Further, most modern 

transport category aircraft now have 

turbine engines, while manufacturers no 

longer produce high horsepower radial 

engines. This is the exact opposite of 

what was in place when the FAA 

established the current Powerplant 

rating (i.e., manufacturers were just 

beginning to use turbine engines on 

civil aircraft). Therefore, separate 

classes for reciprocating engines are no 

longer useful. 

Under the proposed Powerplant 

rating, the FAA intends to establish four 

categories: 

• Category 1: Reciprocating engine. 

• Category 2: Turbine engine. 

• Category 3: Auxiliary Power Units 

(APU). 

• Category 4: All other powerplants. 

Reciprocating engines would be 

grouped into one category regardless of 

the horsepower generated. Turbine 

engines would continue to be grouped 

into one category. Since reciprocating 

and turbine engines do not cross 

technological boundaries, the FAA 

believes the two categories sufficiently 

capture the types of engine work that a 

repair station may perform. 

A new category for APUs is proposed 

because they have evolved into a 

specialized technology in the 

powerplant arena. An APU refers to any 

gas turbine-powered unit delivering 

rotating shaft power or compressed air, 

or both, that is not intended for 

propelling aircraft. APUs often drive 

aircraft generators and air-conditioning 

packs. APUs also can be used as an 

extra source of energy to start the 

primary aircraft engines. The design 

configurations of some aircraft rely on 

an APU for provisional back-up 

electrical power in flight if the primary 

power sources fail. 

The fourth category, All other 

powerplants, would be created to allow 

growth within the Powerplant rating for 

any other powerplant units not 

commonly used in aircraft today, such 

as solely electric engines. 

Under the proposed rating system, a 

repair station holding a new Powerplant 

rating could perform maintenance, 

preventive maintenance, and alterations 

of the powerplant and associated 

articles that are necessary for the 

powerplant to operate properly. 

An application for the proposed 

Powerplant rating would have to 

include a list of the make, model, or 

series of all aircraft engines and APUs 

that the repair station intends to 

maintain. This is a marked change for 

current powerplant class rated repair 

stations. 

As was the case with the proposed 

Airframe rating, the FAA is proposing to 

use the term ‘‘category’’ as a 

replacement for the term ‘‘class.’’ 

c. Propeller Rating (Current § 145.59(c)/ 

Proposed § 145.1059(c)) 

Under the current regulations, the 

Propeller rating has two classes. Class 1 

covers fixed-pitch and groundadjustable propellers of wood, metal, or 

composite construction. All other 

propellers, by make, fall under Class 2. 

This distinction is based on the 

different levels of complexity between a 

propeller with no moving parts and a 

propeller with a mechanical system that 

controls the pitch of the propeller while 

operating. Aircraft with small 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30059 

reciprocating engines generally have 

fixed-pitch propellers, while aircraft 

with high horsepower engines have 

variable-pitch propellers. Although 

varying levels of complexity exist for 

propellers, most repair stations 

performing maintenance on propellers 

hold both class ratings. 

As was the case with the current 

Airframe rating, the use of a propeller’s 

composition as a basis to classify 

propellers has lost its usefulness. 

The proposed Propeller rating would 

be structured to categorize propellers by 

complexity of designs and would no 

longer refer to the composition of a 

propeller as a method of categorization. 

The proposed structure of the Propeller 

rating is: 

• Category 1: Fixed-pitch and groundadjustable propellers. 

• Category 2: Variable-pitch 

propellers. 

• Category 3: All other propellers. 

The proposed Propeller rating would 

permit a repair station to perform 

maintenance, preventive maintenance, 

and alterations on propellers and their 

respective individual component parts 

that are necessary for the propellers to 

operate. Examples of these propeller 

component parts would be propeller 

blade pitch controls, governors, pitch 

change assemblies, pitch locks, 

mechanical stops, and feathering system 

components. The proposed Propeller 

rating does not include main and 

auxiliary rotors (Airframe rating 

required) or rotating airfoils of aircraft 

engines (Powerplant rating required). 

An application for the proposed 

Propeller rating would have to include 

a list of the make, model, or series of all 

propellers that the repair station intends 

to maintain. 

As was the case with the proposed 

Airframe and Powerplant ratings, the 

FAA is proposing to use the term 

‘‘category’’ as a replacement for the term 

‘‘class.’’ 

d. Component Rating (Proposed 

§ 145.1059(d)) 

The current Radio rating (§ 145.59(d)) 

consists of three classes: Class 1— 

Communication equipment, Class 2— 

Navigation equipment, and Class 3— 

Radar equipment. In its report, ARAC 

indicated that technological advances in 

avionics have led to much controversy 

over this categorization of equipment. 

ARAC noted that modern avionics 

equipment typically integrates 

communication and navigation 

functions into a single avionics 

appliance. Radar and radio equipment 

that operate using pulse technology also 

serve communication and navigation 

functions. As such, repair stations 

performing work on avionics equipment 

often hold a Radio rating with all three 

of the classes. 

The current Instrument rating 

(§ 145.59(e)) consists of four classes: 

Class 1—Mechanical, Class 2— 

Electrical, Class 3—Gyroscopic, and 

Class 4—Electronic. These classes were 

established based on the technology 

available at the time. However, most 

instruments currently operate using a 

combination of these technologies. 

These class distinctions are no longer 

appropriate. 

The current Accessory rating (current 

§ 145.59(f)) has three classes. Class 1 is 

mechanical accessories that depend on 

friction, hydraulics, mechanical linkage, 

or pneumatic pressure for operation. 

Class 2 is electrical accessories that 

depend on electrical energy for their 

operation and generators. Class 3 is 

electronic accessories that depend on 

the use of an electron tube, transistor, or 

similar device. Similar to the Instrument 

rating, the classes for the Accessory 

rating identify the article’s principle of 

operation. Many articles maintained 

under this rating use a combination of 

principles, thus requiring repair stations 

to hold all the class ratings for an 

Accessory rating. 

The classes defined in §§ 145.59(d), 

(e), and (f) are essentially the same as 

when they were implemented in 1941. 

The technological advances in radios, 

instruments, and accessories have often 

combined many of the functions and 

modernized the construction of the 

articles detailed in these classes. Under 

oo current rule, repair stations may not 

be able to categorize properly the 

articles on which they desire to perform 

maintenance. Therefore, repair stations 

may be required to possess tools and 

equipment that are either antiquated or 

not available. 

The FAA is proposing a new 

Component rating to replace the Radio, 

Instrument, and Accessory ratings. The 

proposed Component rating would 

allow repair stations to perform 

maintenance, preventive maintenance, 

and alterations on various components 

and related articles that are not installed 

on an airframe, powerplant, or 

propeller. The various components and 

articles that are currently included in a 

Radio, Instrument, or Accessory class 

rating would be absorbed into the 

Component rating. A repair station with 

a Component rating would be required 

to have an Airframe, Powerplant, or 

Propeller rating with limitations to 

install components or appliances. The 

FAA believes that the comments 

generated in previous rulemaking 

attempts are being addressed by this 

proposed rating. The Component rating 

would open opportunities for repair 

stations to have numerous components 

listed on their operations specifications, 

thus generating more work and revenue. 

An application for the proposed 

Component rating would have to 

include a list of the components that the 

repair station intends to maintain. 

e. Specialized Service Rating (Proposed 

§ 145.1059(e)) 

The FAA is proposing a new rating, 

called Specialized Service, to address 

what is currently listed as specialized 

services functions of a limited rating. 

This rating would be different from the 

other ratings in that it focuses on the 

maintenance being performed rather 

than the article being maintained. A 

repair station with a Specialized Service 

rating could perform a specialized 

maintenance function that might apply 

across multiple other ratings. 

The proposed Specialized Service 

rating is substantially the same as the 

existing limited rating for specialized 

services in § 145.61. The Specialized 

Service rating would allow a repair 

station to perform a specific and unique 

function associated with the 

maintenance, preventive maintenance, 

or alteration of an article. The repair 

station’s operations specifications 

would list the Specialized Service rating 

and the specification used in performing 

that specialized service. The 

specification could be a military, 

industry, or applicant-developed 

specification that was approved by the 

FAA. Examples of specialized services 

would include, but not be limited to, 

non-destructive testing or inspection, 

welding, heat-treating, plating, and 

plasma spraying. 

If specialized service functions are 

contained within a repair station’s 

existing ratings, the repair station would 

not require an additional rating to 

perform that service. For example, if an 

Airframe rated repair station has the inhouse capability to perform x-ray 

inspections in accordance with the 

airframe Instructions for Continued 

Airworthiness, it would not need to 

have a Specialized Service rating to 

perform that function on an airframe for 

which it is already rated. 

As is the case with the current limited 

specialized service rating, this rating 

could enhance the capabilities of some 

repair stations that are limited by the 

article-based rating they possess. This 

individual rating would allow a repair 

station to perform the maintenance 

function outside of its article-based 

rating—to specialize in a particular 

maintenance function without being 

required to hold an Airframe, 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30060 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

Powerplant, Propeller, or Component 

rating to perform the service. 

An application for the proposed 

Specialized Service rating would have 

to include a list of the services, with 

associated specifications, that the repair 

station intends to provide. 

f. Limitations to Ratings (Current 

§ 145.61/Proposed § 145.1061) 

Section 145.61 provides for limited 

ratings based on a repair station 

performing maintenance, preventive 

maintenance, or alterations on a 

particular make or model of aircraft, 

powerplant, propeller, radio, 

instrument, accessory, or part thereof, 

and for performing specialized 

maintenance. 

The FAA is proposing that limited 

ratings no longer be issued. Proposed 

§ 145.1061 would more accurately detail 

the FAA’s current practice of issuing 

limitations to the rating of a certificated 

repair station. For example, if a repair 

station intends to perform only interior 

configuration work or aircraft painting, 

the FAA would issue the repair station 

a limitation to its Airframe rating and 

list that limitation on the repair station’s 

operations specifications. The repair 

station’s operations specifications 

would specify the rating to which the 

limitation applies in sufficient detail to 

describe the maintenance capabilities of 

the repair station. 

The FAA believes that the ability to 

place limitations when necessary on a 

repair station’s rating is essential to 

accurately reflect the repair station’s 

capabilities. Currently, a repair station’s 

operations specifications contain 

provisions for this purpose. This 

proposed change would add regulatory 

language to control what has historically 

been an essential part of the rating 

system. 

3. Certification Requirements 

Several areas within subpart B 

(Certification) of part 145 have, over 

time, caused confusion in the industry 

and within the FAA. Changes within 

this subpart are needed to clarify 

existing regulatory language and, in 

some cases, create regulatory language 

where essential practices have long been 

imposed through FAA guidance. 

Changes are also needed in this subpart 

to align language with other proposed 

section changes contained in this 

NPRM. In addition, this NPRM contains 

a proposal to allow for certification 

denial when certain enforcement history 

exists. 

a. Application for Certificate—Items 

Required (Current § 145.51(a)/Proposed 

§ 145.1051(a)) 

Current § 145.51(a) details, and 

§ 145.1051(a) proposes to detail, those 

items that must be included in an 

application for a repair station 

certificate and rating. 

The FAA proposes to add a provision 

that would require an initial applicant 

for a repair station certificate to provide 

the FAA with a letter outlining how the 

applicant will comply with each section 

of part 145 (see proposed § 145.1051(a)). 

The FAA refers to this as a ‘‘letter of 

compliance.’’ Under longstanding FAA 

policy and practice, applicants have 

provided this letter in the past. Since 

this letter has long been an essential 

part of the application process, the FAA 

believes it appropriate to propose a 

regulatory basis for it. Also, because 

applicants have been providing these 

letters by policy, the FAA believes no 

additional cost would be incurred. 

Current § 145.51(a)(1) requires that an 

application for a repair station 

certificate include a repair station 

manual acceptable to the FAA as 

required by current § 145.207, and 

§ 145.51(a)(2) requires that the 

application include a quality control 

manual acceptable to the FAA as 

required by current § 145.211(c). These 

requirements are found in proposed 

§§ 145.1051(a)(2) and (a)(3), 

respectively. The FAA is also proposing 

in § 145.1051(a)(3) that the repair station 

manual and the quality control manual 

may be contained in the same document 

if they are clearly identified. 

Currently, an applicant is required to 

provide a list by type, make, or model 

of each article for which the application 

is made (§ 145.51(a)(3)). This 

requirement is not explicitly linked to 

the rating system found in § 145.59. The 

FAA proposes to revise this requirement 

(in proposed § 145.1051(a)(4)) to 

specifically reference the rating system 

(as found in proposed § 145.1059). This 

would help the applicant better 

understand the certification 

requirements and align the information 

provided at the time of application with 

the actual ratings allowed through the 

regulation. The FAA does not anticipate 

that this change would burden current 

repair stations, and it would ensure that 

applicants submit the necessary 

information without adding new 

requirements. 

As repair stations have become larger 

and more complex, it is apparent that 

identification of the principal repair 

station location has often become 

difficult to ascertain for the public as 

well as for the FAA. This has made it 

difficult for the FAA to fulfill its 

obligation to provide appropriate 

oversight. Current § 145.51(a)(5) 

requires an applicant to provide a 

description of its housing and facilities, 

in accordance with § 145.103. The FAA 

is proposing clarifying language in 

§ 145.1051(a)(6) that would require the 

applicant to identify all facilities that 

will make up the repair station at the 

time of application. 

The FAA is not proposing changes to 

the requirements in current 

§§ 145.51(a)(4), (6) and (7). However, in 

proposed subpart G, these requirements 

would be found in proposed as 

§§ 145.1051(a)(5), (7) and (8) 

respectively. 

b. Application for Certificate— 

Appropriate Equipment (Current 

§ 145.51(b)/Proposed § 145.1051(b)) 

Current § 145.51(b) requires that the 

equipment, personnel, technical data, 

and housing and facilities required for 

the certificate and rating, or for an 

additional rating, must be in place for 

inspection at the time of certification or 

rating approval by the FAA. This 

section also states that an applicant may 

meet the equipment requirement if it 

has a contract acceptable to the FAA 

with another person to make the 

equipment available to the applicant at 

the time of certification and at any time 

it is necessary when the relevant work 

is being performed by the repair station. 

This provision was included for the 

first time in the 2001 final rule in 

response to comments received on the 

1999 NPRM. The commenters expressed 

concerns that the requirement to have 

all the equipment in place at the time 

of certification would be unnecessarily 

burdensome. Others noted that it is 

important only that the equipment be in 

place when it is needed to perform the 

work. Similarly, commenters opposed 

the requirement in then proposed 

§ 145.111 (Equipment and material 

requirements) that would have required 

repair stations to have, located on the 

premises and under their full control, 

the equipment and material necessary to 

perform the maintenance appropriate to 

their ratings. They said the requirement 

would preclude repair stations from 

renting or leasing equipment. The 

commenters also noted that a renting or 

leasing option would be particularly 

important for expensive, rarely used 

tools. 

In response to those comments, the 

FAA revised the text in § 145.51(b) to 

permit an applicant for a repair station 

certificate to meet the equipment 

requirement by having a contract 

acceptable to the FAA that would 

ensure the equipment would be 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30061 

available when the relevant work is 

performed. Agreeing with the 

commenters’ concerns over the burden 

of having to purchase expensive, rarely 

used tools to have in place during initial 

certification, the FAA stated that its new 

contract provision ‘‘will accommodate 

those repair stations that do not plan to 

purchase expensive equipment that may 

not be used regularly’’ (66 FR 41095, 

August 6, 2001). The preamble 

discussion, however, noted that the 

provision did not relieve an applicant 

from having the equipment in place and 

available for inspection at the time of 

certification. While recognizing that, 

under this provision, an applicant need 

not physically retain the equipment 

after certification, the FAA found it 

necessary that each applicant have the 

equipment in place during the 

certification process. During the 

certification inspection, the FAA could 

‘‘observe the placement of the 

equipment, whether the equipment 

works, and whether the applicant can 

use the equipment properly.’’ Id. 

Similarly, in response to the 

comments on proposed § 145.111, the 

FAA revised the text (now found in 

§ 145.109) to provide that: ‘‘The 

equipment, tools, and material must be 

located on the premises and under the 

repair station’s control when the work is 

being done.’’ This change also 

accommodated the commenters’ 

concerns about not having to purchase 

expensive, seldom used equipment to 

have permanently in place when they 

could instead obtain it through contract 

when needed. 

These issues were discussed in the 

2006 NPRM, when the FAA addressed 

and attempted to clarify what it termed 

was an ambiguity in the existing text. 

The preamble stated that this 

‘‘ambiguity results from the phrase 

specifying that the equipment 

requirement could be met ‘if the 

applicant has a contract acceptable to 

the FAA with another person to make 

the equipment available to the applicant 

at the time of certification’ ’’ (71 FR 

70256, Dec. 1, 2006 (emphasis in 

original)). 

The FAA noted the possibility of 

inconsistent application of this 

provision by different FAA inspectors. 

For example, one inspector might 

require all of the equipment to be placed 

on site for initial inspection, and 

another might only review the contract. 

Noting that the safety basis for the 

equipment requirement is that the 

equipment be in place when the work 

is being performed, the FAA proposed 

revised text in the 2006 NPRM to clarify 

that the requirement for initial 

certification could be met by a contract 

to make the equipment, tools, and test 

apparatus available to the repair station 

at any time it is necessary when the 

relevant work is being performed. 

The FAA has reconsidered this issue 

and has determined that the 

‘‘clarification’’ proposed in the 2006 

NPRM was not entirely consistent with 

the underlying purpose of the provision 

published in the 2001 final rule. As 

noted above, the 2001 preamble 

supported the change to allow 

contracting for equipment availability 

by noting that it would ‘‘accommodate 

those repair stations that do not plan to 

purchase expensive equipment that may 

not be used regularly.’’ The preamble 

also made clear that the new provision 

did not relieve an applicant from having 

the equipment in place and available for 

inspection at the time of certification. 

Thus, the clarification offered in the 

2006 NPRM was not in full accord with 

the agency’s intent set forth in the 2001 

preamble, which would have required 

applicants to have basic equipment in 

place for inspection. 

The FAA believes it should not grant 

a repair station certificate to an 

applicant with a virtually empty 

building based merely on a showing it 

can get the required equipment by 

contract when needed. Therefore, the 

FAA proposes to change the rule to 

remove any ambiguity by requiring the 

repair station to meet the equipment 

requirements of proposed § 145.1051 by 

having the equipment available for 

inspection at certification. The repair 

station would not need to own the 

equipment but would be required to 

present the equipment during 

certification and have it available 

thereafter. 

The FAA also proposes to clarify the 

scope of the kinds of items a repair 

station must have for initially obtaining 

certification by adding both tools and 

test apparatus to the list of items a 

repair station must have on site. While 

the term ‘‘equipment’’ could be 

interpreted to include many examples of 

each, adding the term ‘‘tools’’ to the 

regulation would ensure that an 

applicant for a repair station certificate 

also have on site certain tools necessary 

for the rating sought that individual 

mechanics or repairmen might not 

possess. This might include tools that 

are of a specialized nature for the rating 

or other tools that might be too large or 

expensive, or of a limited specialized 

nature. For the same reasons, and for 

consistency with the requirements of 

§ 43.13(a), the FAA proposes to add 

‘‘test apparatus’’ to the list of items a 

repair station must have in place for 

inspection at the time of initial 

certification or rating approval. 

c. Application for Certificate—Repair 

Stations Outside the United States 

(Current § 145.51(c)/Proposed 

§ 145.1051(c)) 

Current § 145.51(c) requires an 

applicant for a certificate for a repair 

station located outside the United States 

to show the certificate and/or rating is 

necessary for maintaining or altering 

certain aircraft and articles. The result 

of this language unintentionally requires 

the repair station applicant to maintain 

both aircraft and articles. The FAA 

proposes to change the word ‘‘and’’ to 

the less restrictive ‘‘or’’ in proposed 

§ 145.1051(c). 

d. Application for Certificate—Denial 

(Proposed § 145.1051(e)) 

The 2006 NPRM proposed that the 

FAA could deny an application for a 

repair station certificate if the applicant 

previously held a repair station 

certificate that had been revoked or if 

the applicant or certain key individuals 

who would exercise control over the 

new repair station had materially 

contributed to the circumstances that 

resulted in a prior repair station 

certificate revocation action. This is 

similar to the current authority 

contained in part 119 authorizing the 

FAA to deny applications for air carrier 

and commercial operator certificates. 

The commenters who opposed this 

proposal stated it was too open-ended 

and that it would be impossible to 

maintain a tracking list of disqualifying 

individuals. 

At the present time, the FAA is not 

planning to maintain a tracking list of 

individuals who might be disqualified 

under this section. The agency is, 

however, planning to add a question to 

the repair station application inquiring 

into the disqualifying criteria set forth 

in this section, e.g., whether the 

applicant held a repair station certificate 

that had been revoked or that is in the 

process of being revoked. A truthful 

answer here would be imperative in 

view of proposed § 145.1012, because an 

intentionally false answer to the 

question could result in the suspension 

or revocation of any FAA-issued 

certificate held by that applicant. 

While the FAA understands the 

concerns of the commenters, the agency 

believes this requirement should be 

implemented to address safety concerns. 

For example, a chief inspector from a 

repair station that lost its certificate for 

serious maintenance-related safety 

violations applied for and received a 

new repair station certificate. That 

individual also became the chief 

inspector at the newly certificated repair 

station. While under the chief 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30062 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

8As a result of this incident, the NTSB, in a safety 

recommendation dated February 9, 2004 (A–04–01 

and A–04–02), expressed concern that the FAA did 

not have a mechanism for preventing individuals 

who were associated with a previously revoked 

repair station from continuing to operate through a 

new repair station. 

inspector’s direction, employees of the 

newly certificated station performed 

improper maintenance on a number of 

propellers, one of which came apart in 

flight causing a fatal accident.8

The FAA already has such a 

mechanism in place for air carriers and 

commercial operators. Section 119.39(b) 

allows the FAA to deny an application 

for a part 121 or 135 air carrier 

certificate or operating certificate based 

on prior relevant enforcement action. 

The FAA can deny certification to an 

applicant who is substantially owned by 

(or intends to fill a management 

position with) an individual who had a 

similar interest in a certificate holder 

whose certificate was (or is being) 

revoked when that individual materially 

contributed to the circumstances 

causing the revocation process. 

The FAA proposes new language (in 

§ 145.1051(e)) to detail conditions under 

which a person may be denied a repair 

station certificate. The changes the FAA 

propose are based to a large extent on 

the language contained in § 119.39(b). 

The FAA’s proposal would authorize 

the agency to deny a repair station 

application if: 

• The applicant previously held a 

repair station certificate that was 

revoked. 

• The applicant intends to fill or fills 

a management position with an 

individual who exercised control over 

or who held the same or a similar 

position with a certificate holder whose 

repair station certificate was revoked, or 

is in the process of being revoked. That 

individual must have materially 

contributed to the circumstances 

causing the revocation or causing the 

revocation process. 

• An individual who would hold a 

management position previously held a 

management position with a certificate 

holder whose repair station certificate 

was revoked, or is in the process of 

being revoked. The individual must 

have materially contributed to the 

circumstances causing the revocation or 

causing the revocation process. 

• An individual who would have 

control over or substantial ownership 

interest in the applicant had the same or 

similar control or interest in a certificate 

holder whose repair station certificate 

was revoked, or is in the process of 

being revoked. That individual must 

have materially contributed to the 

circumstances causing the revocation or 

causing the revocation process. 

The current regulations (§ 145.55(a)) 

contemplate the holder of a repair 

station certificate voluntarily 

surrendering the certificate to the FAA, 

in which case it would cease to be 

effective. This voluntary surrender 

provision is sometimes abused in an 

attempt to thwart an ongoing 

investigation. The FAA is aware that 

sometimes after an enforcement 

investigation has commenced, the 

certificate holder will attempt to 

surrender the certificate as a means of 

stopping the enforcement action. It is 

the FAA’s policy, however, not to 

accept the voluntary surrender of a 

certificate in those circumstances. The 

FAA’s Compliance and Enforcement 

Program (FAA Order 2150.3B at Ch 5, 

Para. 10(b)) instructs FAA investigative 

personnel to refuse the voluntary 

surrender of a certificate if it appears the 

surrender is being attempted to avoid a 

certificate action. In those cases, the 

investigative personnel are to continue 

with the investigation and recommend 

enforcement action, if appropriate. As 

discussed in paragraph f (Duration and 

Renewal of Certificate (current § 145.55/ 

proposed § 145.1055)) below, the FAA is 

proposing to amend the text currently in 

§ 145.55 to add a new condition to the 

certificate surrender provision—that 

acceptance for cancellation by the FAA 

of a certificate offered for surrender is 

necessary to render the certificate no 

longer effective. This change would 

highlight and provide additional notice 

to the holders of repair station 

certificates of the FAA’s policy against 

potential violators merely surrendering 

their certificates to avoid enforcement 

action. Unless the FAA accepted the 

certificate for surrender, it would 

remain effective for administrative and 

enforcement purposes, even if the 

certificate holder ceased operations. 

Accordingly, in the event of an 

enforcement action that might result in 

the suspension or revocation of a repair 

station certificate, the enforcement 

process could continue and, in the case 

of a revocation, a record would exist to 

support the certificate denial provisions 

proposed in this paragraph. 

The FAA recognizes that the proposed 

language does not contain an appeal or 

reconsideration procedure. This is 

because a process already exists in 

current § 13.20, which addresses, among 

other things, orders of denial. Paragraph 

(b) of that section provides, in pertinent 

part, that unless an emergency exists 

requiring the immediate issuance of an 

order of denial, the affected person (the 

applicant) must be provided with notice 

prior to issuance of an order of denial. 

Paragraph (c) further provides that, 

within 30 days after service of the 

notice, the affected person may reply in 

writing or request a hearing in 

accordance with subpart D of part 13. 

Subpart D of part 13 provides the Rules 

of Practice for FAA Hearings. Thus, 

applicants who are denied a repair 

station certificate would be provided 

with appropriate due process through 

the means of an evidentiary hearing. 

e. Issue of Certificate (Current § 145.53/ 

Proposed § 145.1053) 

Current § 145.53(a) states that, subject 

to three exceptions, a person who meets 

the requirements of part 145 is entitled 

to a repair station certificate with 

appropriate ratings prescribing such 

operations specifications and 

limitations as are necessary in the 

interest of safety. Since proposed 

§ 145.1051 would provide a mechanism 

for the FAA to deny a certificate, an 

applicant would no longer be ‘‘entitled’’ 

to a certificate. 

The FAA is proposing in 

§ 145.1053(a) that an applicant could be 

found ‘‘eligible to be issued’’ a 

certificate. This proposed change is 

consistent with other certification 

requirements, such as in parts 121 and 

135, where the FAA has the authority to 

deny a certificate. In addition, the FAA 

proposes to remove the three exceptions 

from this paragraph as they refer to 

additional requirements for particular 

applicants, not exceptions to the 

eligibility requirements. 

Section 145.53(b) sets forth the 

procedure to certify repair stations 

located in a country with which the 

United States has a bilateral aviation 

safety agreement. This procedure is 

based on the certification from the civil 

aviation authority of the country that 

the applicant meets the requirements of 

part 145. 

The FAA must consider that the 

United States may enter into a bilateral 

agreement with a civil aviation 

authority other than a national aviation 

authority. This situation already exists 

in Europe. The European Union formed 

the European Aviation Safety Agency 

(EASA) to carry out those civil aviation 

safety functions that were previously 

the domain of national aviation 

authorities. 

Therefore, the FAA is proposing in 

§ 145.1053(b) to allow the FAA to certify 

a repair station outside the U.S. based 

on a certification from an authority 

acceptable to the FAA. This change 

would allow the FAA to make the 

finding based on a recommendation 

from a national aviation authority, 

EASA, or any other EASA-like entity 

that may be created in the future. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30063 

f. Duration and Renewal of Certificate 

(Current § 145.55/Proposed § 145.1055) 

As discussed in paragraph d 

(Application for Certificate—Denial 

(proposed § 145.1051(e)) above, the FAA 

has experienced instances in which a 

certificate holder surrendered its 

certificate to the FAA in order to stop 

an investigation that the holder 

suspected would lead to an FAA order 

suspending or revoking the certificate 

because of known or suspected serious 

violations of the regulations. In the case 

of a repair station, the holder of a repair 

station certificate could attempt to take 

advantage of the provision in current 

§ 145.55, regarding surrender of the 

certificate. Upon surrender the 

certificate would no longer be effective, 

and there would be no certificate that 

could be suspended or revoked. This is 

an abuse of the surrender provision, as 

it was never intended as a device to stop 

an investigation and possible 

enforcement proceeding. In proposed 

§ 145.1055, the FAA would add a new 

condition to rendering a surrendered 

certificate ineffective. Under the 

proposal, a surrendered certificate 

would remain effective unless the FAA 

accepted it for cancellation. 

As the discussion in paragraph d 

points out, the FAA’s Compliance and 

Enforcement Program (FAA Order 

2150.3B at Ch 5, Para. 10(b)) instructs 

FAA investigative personnel to refuse 

the voluntary surrender of a certificate 

if it appears the surrender is an attempt 

to avoid a certificate action. The 

amendment proposed here would 

provide additional notice to all holders 

of repair station certificates that 

successfully surrendering a repair 

station certificate for cancellation 

requires not only the offer of surrender, 

but also the FAA’s acceptance of that 

offer. As we noted above, unless and 

until the FAA accepts for cancellation a 

surrendered certificate, the certificate 

would remain effective for 

administrative and enforcement 

purposes, even if the holder ceased 

operations. 

Current § 145.55(c) sets forth what a 

certificated repair station located 

outside the United States must provide 

to renew its certificate. In addition to 

the items listed in that provision, a 

certificated repair station located 

outside the United States must pay a fee 

for service as a condition for renewal. 

The requirement to pay this fee as part 

of the renewal application is not in 

§ 145.55(c) even though it is a 

requirement found in 14 CFR part 187. 

The FAA is proposing in 

§ 145.1055(c)(3) that, as a condition of 

renewal, the fee prescribed by the FAA 

has been paid. 

g. Capability List (Current § 145.215/ 

Proposed § 145.1215) 

During the repair station certification 

process, an applicant’s ratings are 

established following a demonstration 

to the FAA that the applicant is capable 

of performing maintenance on specific 

articles. Following certification, the 

FAA expects that a repair station 

continues to manage and control its 

capabilities on each individual article it 

maintains. This is accomplished by the 

repair station ensuring that it has, for 

example, trained personnel, and the 

necessary data, facilities, and 

equipment. 

Under the current Limited rating, a 

repair station is required to document 

each article it maintains on either a 

capability list, or on the repair station’s 

operations specifications. For Class 

ratings, the FAA assumes that a repair 

station, using its own methods, manages 

its capabilities with the same level of 

detail (although this is not required). 

Under this Class rating system, what an 

individual repair station is actually 

capable of maintaining is for the most 

part known only to the repair station 

and the individual FAA principal 

inspector(s) assigned to manage that 

repair station’s certificate. 

The FAA believes it is critical that 

both a repair station and the FAA are 

able to identify the actual certified 

capabilities of that repair station at any 

given time. It is important that the 

actual capabilities of a repair station are 

documented and that the 

documentation is current. The 2006 

NPRM was not clear as to how the 

articles should be listed on the 

capability list. The FAA is proposing to 

define what is required on the capability 

list by adding two terms. The first, 

‘‘series as applicable,’’ would recognize 

that not all models have series. The 

second, ‘‘basic part number,’’ would be 

added to clarify that it is not necessary 

to list each model or part ‘‘dash 

number.’’ The requirements for 

identifying articles on the capabilities 

list would provide clarity, consistency, 

and flexibility. 

If the repair station chooses to use a 

capability list, the proposed rule would 

require that it identify each airframe, 

powerplant, or propeller by 

manufacturer, model, and series as 

applicable. For a component rating, the 

proposed rule would require that the list 

identify each component for which the 

repair station is rated by manufacturer, 

manufacturer-designated nomenclature, 

and basic part number. 

Currently, it is required that this level 

of documentation exists for each repair 

station with a Limited rating. The 

documentation is either on a capability 

list or listed on the repair station’s 

operations specifications. For all ratings 

under the current rule, including Class 

ratings, a repair station must ensure that 

it has the housing, facilities, equipment, 

material, technical data, and trained 

personnel in place prior to performing 

maintenance on an article. To make this 

determination today, a repair station 

must be aware of the manufacturer, 

model, series, nomenclature, and basic 

part number, for example, of each article 

it wishes to maintain. Otherwise, the 

repair station would not know what 

data to obtain, what subjects to train 

personnel in, and what equipment to 

purchase. 

The current practice of issuing Class 

ratings was found to have limitations 

and unforeseen consequences that were 

not apparent until the advent of new 

technology components and aircraft. 

Class ratings entitled repair stations to 

work on articles neither they nor the 

FAA ever envisioned would exist at the 

time the rating was issued. That the 

repair station would limit itself from 

working on certain articles for which it 

was not fully capable essentially 

provided, in effect, a limited Class 

rating. This proposed rule would 

eliminate Class ratings and require the 

‘‘writing down’’ of this identifying 

information in a standard format for all 

repair stations. From this perspective, 

the FAA believes the burden on the 

industry would be an administrative 

one, in particular for those currently 

holding a class rating. However, the 

burden should be, for the most part, 

limited to the onetime transfer of the 

capability list to a standard format 

acceptable to the FAA. The FAA 

requests specific comments, 

observations, and suggestions regarding 

the elimination of class ratings. 

To ease this burden and to 

standardize the method used to 

document capabilities, the FAA may 

develop a web-based capability list. The 

FAA believes that an FAA-hosted 

automated capability list, if created, 

should have a positive impact on FAA 

staff and resources. Currently, a 

certificated repair station with a Limited 

rating has the option to list the articles 

for which it is rated on a capabilities 

list, and to expand that list through a 

self-evaluation process. Under this 

proposed rule, all repair stations could 

proceed in one of two ways to add an 

article to their capabilities list. First, a 

repair station could submit a request to 

the FAA for approval. The request 

would have to document that the repair 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30064 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

station is capable of performing the 

requested work—it would have to 

demonstrate that it has the technical 

data, housing, facilities, equipment, 

material, processes, and trained 

personnel to perform the work on the 

article for which it seeks approval. 

Second, either during the repair 

station’s initial application process, or 

later through an amendment to its 

operations specifications in accordance 

with proposed § 145.1058, the repair 

station could seek a general 

authorization in its operations 

specifications to perform a selfevaluation each time it wishes to add an 

article to its capabilities list. Similar to 

the criteria used in the individual 

request to the FAA method discussed in 

option one, the self-evaluation would be 

done to determine that the repair station 

has the technical data, housing, 

facilities, equipment, material, 

processes, and trained personnel to 

perform the work on the article it 

wishes to add to its capabilities list. If 

the self-evaluation determines that those 

criteria are met, the repair station could 

add the article without specific FAA 

approval. 

The FAA considers the capabilities 

list self-evaluation process to be similar 

in concept to the self-evaluation process 

expected under the current Class ratings 

system. Both processes allow for a 

repair station to add to its capabilities 

list independent from FAA review. It is 

not the FAA’s intent to reduce this 

flexibility with this proposed rule. 

However, under the current rule, Class 

ratings should not be authorized unless 

the repair station can prove the 

capability to maintain a representative 

number of products under the rating. 

Unlike the Class rating which considers 

a repair station’s ability to maintain a 

range of product models, the proposed 

capability list self-evaluation 

authorization would take into account 

the adequacy of a repair station’s quality 

control system to control the expansion 

of its capabilities independent from 

FAA review. A risk-assessment process 

would be used by the FAA to evaluate 

a new repair station applicant’s ability 

to manage a self-evaluation program. 

Existing repair stations using a 

capability list and those with Class 

ratings could be authorized to perform 

self-evaluations for future capability 

changes and would not be required to 

reapply for this authorization. During 

the 24 months of the transition period, 

there would be no requirement for 

existing repair stations to perform selfevaluations on their current capabilities 

beyond what is contained in their 

current procedures. 

Proposed § 145.1215(f) would require 

each repair station with a capability list 

to review its capabilities at least every 

two years, and to remove any article 

from the list that it is no longer capable 

of maintaining. The FAA believes this is 

a necessary quality element to ensure a 

repair station’s capability list 

continually reflects its actual repair 

station capabilities. 

h. Contract Maintenance (Current 

§ 145.217/Proposed § 145.1217) 

The FAA placed this section, Contract 

Maintenance, under the discussion of 

the proposed certification requirements 

because a repair station’s contracting 

capability must be understood and 

evaluated during the certification of the 

repair station. 

With the exception of a new 

paragraph (b)(4), and an expansion of 

the restrictions in paragraph (c), the 

proposed changes in this section are 

made to clarify the intent of the current 

rule. As in the current rule, proposed 

§ 145.1217(a) allows a repair station to 

contract a ‘‘maintenance function’’ to an 

outside source provided certain 

conditions are met. Much confusion 

exists around the term ‘‘maintenance 

function’’ and when FAA approval is 

required when a repair station contracts 

such a function to an outside source. 

The FAA does not approve who a 

certificated repair station contracts with. 

While this information must be 

maintained and made available to the 

FAA, each repair station is free to 

choose with whom it contracts. 

However, the rule currently requires, 

and this proposed rule would continue 

to require, that the FAA approve the 

maintenance function to be contracted. 

The basis of this requirement extends 

back to the original certification of the 

repair station. When an applicant 

applies for a rating, the applicant must 

declare what functions within the rating 

the repair station will contract out. 

For example, an applicant for a 

Component rating to overhaul a specific 

fuel pump model may not be capable of 

rewinding armatures and may plan to 

contract this function out. Although the 

Component rating is a blanket 

authorization to overhaul the pump, the 

applicant has formally declared what 

functions within the rating it will 

contract out—in this case, armature 

rewinding. Another example would be 

an applicant for an Airframe rating who 

does not plan on developing capabilities 

for component overhaul and repair. The 

function contracted out would be 

component overhaul and repair. 

Proposed §§ 145.1217(a)(1) and 

145.1209(e)(5) would continue to 

require the certificated repair station to 

maintain this contracted function 

information for the duration of the 

repair station certificate. 

The overriding intent of current 

§ 145.217(a)(1), and proposed 

§ 145.1217(a)(1) is not for the FAA to 

restrict the ability of a repair station to 

contract out maintenance, but rather to 

ensure the repair station’s capabilities 

are clearly stated at all times. 

Nevertheless, as currently provided in 

§ 145.217(c) and in proposed 

§ 145.1217(c), the FAA will not approve 

the contracting out of all maintenance 

functions encompassed in the repair 

station’s rating. Such a practice would 

effectively render the part 145 certificate 

meaningless. 

Clarification is needed as to what is 

not contract maintenance. Part 145 does 

not regulate the ‘‘brokering’’ of a 

complete article by a repair station. If a 

repair station is not exercising the 

privilege of its certificate, it is not 

contracting a maintenance function as 

covered by the proposed rule. A repair 

station can, as can any other certificated 

or noncertificated person, receive, ship, 

arrange for maintenance, or act as agent 

in the brokering of maintenance for 

others without being considered to be 

contracting maintenance. When a repair 

station exercises the privilege of its 

certificate by engaging in maintenance 

for which it is rated, and then initiates 

the involvement of another person in 

that maintenance, the repair station is 

engaging in contract maintenance. 

For example, if a repair station with 

an Airframe rating removes an engine 

and ships the engine to a repair station 

with a Powerplant rating, it is not 

engaging in contract maintenance 

because it is not rated to perform 

powerplant maintenance. However, if 

during inspection it discovers a 

damaged engine mount, and 

subsequently sends the engine mount to 

another repair station or noncertificated 

facility for a weld repair and approves 

the work for return to service, it would 

be contracting maintenance under the 

repair station rating (see proposed 

§ 145.1217). The repair station is 

contracting maintenance because, under 

its rating, it is authorized to do the work 

and approved it for return to service. 

Therefore, the repair station is 

exercising the privilege of its certificate 

in performing maintenance and it is 

rated for the weld repair by virtue of its 

Airframe rating. 

Throughout § 145.217, the terms 

‘‘outside source’’, ‘‘outside facility’’, and 

‘‘facility’’ are used interchangeably. 

These terms are undefined and subject 

to inconsistent usage and confusion. For 

consistency and to eliminate confusion, 

the FAA proposes to replace these 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30065 

undefined terms in proposed § 145.1217 

with the term ‘‘person,’’ which is 

defined in § 1.1. 

The FAA is proposing in 

§ 145.1217(b)(1) to add a reference to the 

quality control system procedures 

proposed in § 145.1211(c)(1)(vi) to 

emphasize that the quality control 

system of each noncertificated person 

with whom a repair station contracts a 

maintenance function must be 

equivalent to its own. The contracting 

repair station must physically observe 

the quality control system of each 

noncertificated person with whom it 

wishes to contract and determine that it 

meets this standard before any 

maintenance is performed by that 

person. 

The FAA is also proposing a new 

provision (§ 145.1217(b)(4)) to the 

contracting rule to emphasize 

specifically that the personnel 

requirements set forth in proposed 

§ 145.1151(c) apply when maintenance 

is contracted to a noncertificated 

person. Current § 145.151(c) provides 

that each repair station must ensure that 

it has a sufficient number of qualified 

employees to ensure all work is 

performed in accordance with part 43. 

While it is implicit in that rule that 

those personnel requirements apply 

when work is contracted to 

noncertificated persons (because the 

contracting repair station is responsible 

for determining the airworthiness of 

articles before approving them for return 

to service), the FAA is proposing for 

clarity to add a phrase in proposed 

§ 145.1151(c) specifically referring to 

work contracted to a noncertificated 

person. 

To adequately perform the 

surveillance and verification 

requirements of § 145.1217(b), a 

certificated repair station would need a 

sufficient number of employees with the 

training or knowledge and experience in 

the maintenance function performed by 

the noncertificated person. This is 

necessary to assess the noncertificated 

person’s ability to correctly perform the 

work and the proper completion of the 

work. In contracting a maintenance 

function to a noncertificated person, a 

repair station is not absolved from 

having corporate technical knowledge of 

the work performed under its rating. If 

it is not able to ensure such knowledge 

base in its employees, a repair station 

must be limited from, and broker the 

maintenance function to, a person 

appropriately certificated to perform 

and approve the work for return to 

service. 

4. Repair Stations Providing 

Maintenance for Air Carriers (Current 

§ 145.205/Proposed § 145.1205) 

Current § 145.205 contains, and 

proposed § 145.1205 would contain, the 

regulations covering maintenance, 

preventive maintenance, and alterations 

performed for certificate holders under 

parts 121, 125, and 135, and for foreign 

air carriers or foreign persons operating 

U.S.-registered aircraft in common 

carriage under part 129. 

a. ‘‘Applicable Sections’’ of a 

Maintenance Manual (Current 

§ 145.205(a)/Proposed § 145.1205(a)) 

Currently, § 145.205(a) states that a 

repair station working for an air carrier 

or a commercial operator that has a 

continuous airworthiness maintenance 

program under part 121 or part 135 

must follow the carrier’s or commercial 

operator’s program and ‘‘applicable 

sections of its maintenance manual.’’ 

Before the 2001 final rule, § 145.2 

specified the additional requirements 

for repair stations performing 

maintenance work for air carriers or 

commercial operators under the 

continuous airworthiness requirements 

of parts 121 and 127 and for airplanes 

under the inspection program required 

by part 125. The FAA believed that 

parts of the regulation were difficult to 

follow because, for example, it required 

repair stations to comply with identified 

subparts, e.g., ‘‘subpart L of part 121’’ 

(except for certain specified sections). In 

an attempt at clarity, in the 1999 NPRM 

the FAA proposed reversing that logic 

and, in proposed § 145.7, instead of 

listing the exceptions, the proposed rule 

identified the specific sections that, ‘‘as 

applicable,’’ would apply (e.g., ‘‘Each 

certificated repair station * * * must, as 

applicable, comply with * * *’’ the 

specified sections as listed.). That 

proposal also generated adverse 

comments. The references to the various 

specified sections in parts 121 and 135 

‘‘as applicable’’ continued to confuse 

some commenters, some of whom also 

incorrectly inferred that the FAA 

intended to impose additional 

requirements by listing specific sections 

of the rule. 

Based on these comments, the specific 

section references were not included in 

the 2001 final rule. These air carrier 

maintenance provisions are currently 

found in § 145.205 and, generally 

speaking, require repair stations to 

follow the air carrier’s or operator’s 

program and ‘‘applicable sections of its 

maintenance manual.’’ Repair stations 

that provide this type of work have 

stated that the term ‘‘applicable 

sections’’ causes confusion because it is 

subjective and vague. They point out 

that air carriers, air operators, and the 

FAA’s inspectors interpret the term 

differently. Commenters to the 2006 

NPRM voiced similar concerns for 

similar reasons with the change 

proposed there. Specifically, we 

proposed that repair stations must 

comply with ‘‘the applicable parts of 

this chapter and follow the air carrier or 

commercial operator’s program and 

applicable sections of its maintenance 

manual.’’ The confusion expressed by 

the commenters carries a common 

theme, all involving the reference to 

‘‘applicable sections’’ or ‘‘as 

applicable.’’ 

In proposed § 145.1205(a), we are 

attempting to clarify this issue by stating 

that when a repair station performs 

work as a maintenance provider for an 

air carrier or commercial operator, the 

repair station must perform that work in 

accordance with the instructions 

provided by that air carrier or air 

operator. 

b. Certificate Holders Operating Under 

14 CFR Part 125 (Current § 145.205(b)/ 

Proposed § 145.1205(b)) 

In proposed § 145.1205(b), the FAA 

would change the language currently in 

§ 145.205(b) to include all operators that 

may have an approved aircraft 

inspection program. Currently, 

§ 145.205(b) references only FAAapproved inspection programs for part 

125 operators. However, some persons 

operating under part 135 may also have 

an FAA-approved inspection program 

and others may have selected an 

inspection program under § 91.409(e). 

Therefore, references to part 135 and 

§ 91.409(e) would be included in 

proposed § 145.1205(b). 

c. Foreign Persons Operating Under 14 

CFR Part 129 (Current § 145.205(c)) 

If a reference to a foreign air carrier 

or foreign person operating a U.S.- 

registered aircraft under part 129 is 

added to proposed § 145.1205(a), it is no 

longer necessary to include a provision 

similar to § 145.205(c) in proposed 

§ 145.1205. Each of these part 129 

operators must have an FAA-approved 

maintenance program that must be 

followed by persons performing 

maintenance on these aircraft. 

d. Line Maintenance (Current 

§ 145.205(d)) 

The 1999 NPRM introduced the 

concept of line maintenance for repair 

stations. As proposed, line maintenance 

was intended to allow repair stations 

currently located at an air carrier’s line 

station to perform simple scheduled 

servicing and unscheduled maintenance 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30066 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

that could be performed safely without 

the need to house the aircraft. This was 

intended to provide relief from the 

requirements of § 145.103(b), which 

requires a repair station with an 

airframe rating to have the ability to 

house the largest aircraft for which it is 

rated. This maintenance would not 

necessarily require housing the entire 

aircraft. 

For reasons unstated, the 2001 final 

rule did not include a requirement that 

line maintenance be limited to those 

repair stations located at air carrier line 

stations. In addition, it introduced the 

concept that a repair station could 

perform line maintenance upon 

authorization by the FAA. It also 

included a definition of line 

maintenance (in § 145.3) that included 

‘‘any unscheduled maintenance 

resulting from unforeseen events.’’ 

These additions imply that a repair 

station may perform ‘any unscheduled 

maintenance’ without meeting the 

prerequisites of part 145 for an 

appropriate rating, simply based on the 

issuance of an ‘authorization’ to perform 

‘line maintenance’ for an air carrier or 

commercial operator. 

Line maintenance was not intended to 

be a rating. Rather, it was meant to be 

an authorization for an appropriately 

rated repair station. The § 145.103(b) 

housing requirement applies to a repair 

station holding an Airframe rating. 

Section 145.205(d) is an authorization 

providing relief from that requirement 

under limited circumstances. 

However, as applied, line 

maintenance authorization has been 

granted to repair stations without the 

appropriate ratings or facilities because 

the existing language implies that it is 

permissible. This was a concern 

expressed in comments in response to 

the introduction of the line maintenance 

authorization in 2001. In addition, the 

line maintenance concept has also 

resulted in repair stations that were 

created simply to perform line 

maintenance at many geographically 

disparate locations, which makes it 

almost impossible for the FAA to 

reasonably perform its safety oversight 

function. 

To rectify this situation, the FAA is 

proposing to eliminate the current line 

maintenance concept by not including a 

provision similar to § 145.205(d) in 

proposed § 145.1205. 

However, the performance of 

maintenance that could include line 

maintenance would still be an available 

option for a repair station. A repair 

station could be issued a limitation to 

an Airframe rating to identify and limit 

the work the repair station could 

perform. This could include line 

maintenance. With appropriate 

limitations, line maintenance is simply 

one example of work for which a 

limitation to an Airframe rating could be 

issued. With a limitation of line 

maintenance for a specified air carrier or 

commercial operator, the repair station 

would be permitted to perform 

maintenance limited to line 

maintenance, but there would be no 

authorization for line maintenance 

beyond the limitation to the rating. 

If the line maintenance work is to be 

accomplished temporarily away from 

the repair station, this could be 

accommodated under the provisions of 

§ 145.1203 (Work Performed at Another 

Location). If the location is in the 

United States and intended to be 

permanent, and is within the 

geographical boundaries of the local 

FAA Certificate Holding District Office, 

an additional fixed facility of the repair 

station as provided by proposed 

§ 145.1103(d) may be appropriate. If the 

location is not within the geographical 

boundaries of the Certificate Holding 

District Office, certification of a separate 

repair station or satellite repair station 

under proposed § 145.1107 may be 

appropriate. This would reintroduce the 

original intent that this type of work 

would be limited to currently 

certificated repair stations at such 

locations where the work is needed. 

The current definition of line 

maintenance does not correctly describe 

the scope of this level of maintenance. 

Therefore the FAA is also proposing to 

revise the definition of line maintenance 

in proposed § 145.1003(e). The 

definition would now reinforce that line 

maintenance is performed for air 

carriers, is generally performed at the 

ramp, parking area or gate, and typically 

will not exceed 24 continuous hours per 

aircraft. 

5. Other Proposed Changes 

a. Applicability (Proposed § 145.1001) 

A new applicability statement is 

necessary to address the transition 

period. This language would direct 

applicants to subparts F through J for 

the regulations that would apply to 

them. This new section would continue 

to state that a repair station certificate is 

issued for the performance of 

maintenance, preventive maintenance, 

and alterations on civil products to 

which part 43 applies. The FAA cannot 

compel a person to hold a repair station 

certificate, so the phrase in current 

§ 145.1 or is required to hold would be 

deleted as unnecessary. The FAA 

proposes instead that the rules would 

apply to any person who holds out as 

an FAA-certificated repair station. 

b. Avionics (Proposed § 145.1003(c)) 

Aviation electronic technology has 

advanced dramatically since the advent 

of the current ratings system. Because of 

these advancements, the ARAC 

recommended the addition of an 

avionics rating. The FAA proposed such 

a rating in the 2006 NPRM. The 

commenters generally opposed a 

separate avionics rating. Most of these 

commenters stated that avionics are 

components and should simply be 

identified as such. Moreover, other 

commenters stated that confusion 

would exist if avionics were made a 

separate category of component. 

To recognize advances in the field of 

aviation electronics and to reduce any 

confusion that exists regarding the 

differences and overlaps in the terms 

instruments, electronics, electrical 

systems, and avionics, the FAA is 

proposing to add a definition for the 

term ‘‘Avionics’’ in proposed 

§ 145.1003(c). Under this definition, 

‘‘Avionics’’ (i.e., aviation electronics) 

would be any component generally 

associated with processing digital 

electronic signals. Examples of such 

components include radios and 

navigation equipment, radar, and data 

processors. 

c. Repair Station Records: Falsification, 

Reproduction, or Alteration (Proposed 

§§ 145.12 and 145.1012) 

At present, part 145 does not contain 

a general prohibition against making 

fraudulent or intentionally false entries 

in repair station records or for making 

fraudulent reproduction or alteration of 

records or reports. Other parts of the 

regulations do contain similar 

proscriptions. For example, part 43 

contains such prohibitions for 

maintenance records or reports, with a 

consequence of suspension or 

revocation of the applicable airman, 

operator, or production certificate and 

other specified privileges (see § 43.12.). 

Other regulations contain similar 

prohibitions (e.g., intentionally false 

entries on applications and other 

records, and cheating on tests) with 

similar consequences (i.e., suspension 

or revocation of FAA-issued certificates 

or ratings (see. e.g., §§ 61.37, 61.59, 

63.18, 63.20, 65.18, 65.20, and 67.403.)). 

While § 43.12 provides for suspension 

or revocation of the applicable airman 

and other mentioned certificates and 

privileges for requisite maintenance 

record falsifications or fraudulent acts, 

it does not provide for repair station 

certificate suspension or revocation for 

the same kind of conduct. 

Therefore, the FAA is proposing a 

new § 145.12 in subpart A, and a new 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30067 

§ 145.1012 in subpart F, that would be 

similar to § 43.12. Under 49 U.S.C. 

44701, the FAA is charged with 

promoting aviation safety. The 

importance of accurate records and 

reports cannot be overstated. In view of 

the FAA’s limited resources, ‘‘the 

agency, and ultimately the flying public, 

depend heavily on the integrity of the 

system of self-reports.’’ Twomey v. 

National Transp. Safety Bd., 821 F.2d 

63, 68 (1st Cir. 1987). Because of the 

importance of honest and trustworthy 

records and reports to aviation safety, 

the FAA believes that any person who 

makes or causes to be made an 

intentionally false or fraudulent entry in 

any record or report the agency needs to 

provide proper oversight of repair 

stations should be subject to 

enforcement action as noted above. 

Accordingly, the agency is proposing 

suspension or revocation of not only the 

repair station certificate, but any 

certificate, approval, or authorization 

issued by the FAA and held by that 

person. 

d. Amendment to or Transfer of 

Certificate (Current § 145.57/Proposed 

§ 145.1056) 

Although the one thousand series 

numbers (1xxx) in proposed subparts F 

through J generally have the same one 

hundred series number (xxx) for each 

corresponding regulation section in the 

current rule (subparts A through E), the 

FAA is proposing to deviate from this 

scheme for this section in order to 

accommodate two new proposed 

sections on operations specifications. 

Therefore, the proposed new section on 

‘‘Amendment to or transfer of 

certificate’’ would be numbered 

§ 145.1056, whereas the current section 

is numbered § 145.57. The proposed 

section captioned ‘‘Operations 

specifications’’ would be numbered 

§ 145.1057. Also, as written, current 

§ 145.57 contains confusing language 

that implies a repair station must apply 

for a change to its certificate without 

reason. The proposed section would 

change the confusing language and add 

a time limitation for submitting an 

application for a certificate amendment, 

change in location, or transfer of 

certificate. 

e. Operations Specifications (Proposed 

§ 145.1057) 

Currently, part 145, Repair Stations, 

introduces the requirement for 

operations specifications in § 145.5, 

Certificate and operations specification 

requirements. Unlike other operating 

rules requiring operation specifications, 

part 145 does not explain what 

operation specifications are or what 

they must contain. Also unlike part 119, 

which clearly states in § 119.7 that with 

limited exceptions operations 

specifications are not a part of the 

certificate, some operators and FAA 

personnel assume repair station 

operations specifications are an 

extension of the repair station 

certificate, while others do not. The 

FAA is proposing to specify how long 

operations specifications are valid, what 

they must contain, and where they must 

be located. The FAA would also clarify 

that except for those operation 

specifications detailing ratings and 

limitations, repair station operations 

specifications are not a part of the repair 

station certificate. 

f. Amending Operations Specifications 

(Proposed § 145.1058) 

The proposed clarification of 

operations specifications in proposed 

§ 145.1057, specifying that operations 

specifications are not a part of a 

certificate, would allow the FAA to 

make administrative changes to 

operations specifications other than 

ratings or limitations (e.g., definitions or 

formatting) without having to resort to 

certificate action, when appropriate 

notice is given to the repair station. This 

section would provide procedures to be 

followed by both the FAA and repair 

stations for initiating changes to the 

operations specifications. Additionally, 

procedures would be provided for 

affected repair stations to petition for 

reconsideration of adverse decisions by 

the FAA, both in emergency and nonemergency situations. 

g. Housing and Facilities (Current 

§ 145.103/Proposed § 145.1103) 

The FAA is proposing to amend the 

rules for housing and facilities to 

require that the housing for the 

facilities, equipment, materials, and 

personnel be both suitable and 

permanent. The agency is also 

proposing to provide an exception to the 

requirement that a repair station with an 

airframe rating must be able to enclose 

the largest type and model of aircraft on 

its operations specifications to facilitate 

those with a limitation to the airframe 

rating such that the entire aircraft would 

not need to be housed to provide 

appropriate environmental protection. 

As stated previously, this exception 

would facilitate repair stations with a 

limitation to perform line maintenance 

for air carriers. Finally, in addition to 

some minor clarifications, the FAA is 

proposing to allow a repair station to 

use multiple fixed locations if 

appropriate criteria are met. 

i. Exception to Housing Requirement 

Under current § 145.103(b), a 

certificated repair station with an 

Airframe rating must provide suitable 

permanent housing to enclose the 

largest type and model of aircraft listed 

on its operations specifications without 

consideration of the limits of the work 

being performed. Even if the work is 

limited to a certain part, portion, or 

section of the aircraft, a repair station 

must be able to house the entire aircraft 

if it has an Airframe rating. 

To retain the level of safety 

established by certification of a repair 

station under part 145, but to lessen the 

impact to those repair stations 

performing line maintenance or other 

maintenance not normally associated 

with a requirement to have housing to 

enclose the entire aircraft, the FAA is 

proposing, in § 145.1103(b), to provide 

relief from the housing requirement of 

§ 145.103(b). The proposed change 

would allow a repair station with an 

Airframe rating and appropriate 

limitations to that rating to perform the 

limited airframe maintenance without 

having housing to enclose the entire 

aircraft. If, as determined by the FAA, 

the repair station provides adequate 

environmental protection for the work 

being performed under the limitation to 

its rating, it would not be required to 

house the complete aircraft. 

This is consistent with the housing 

exception for line maintenance found in 

§ 145.205(d). The proposed rule permits 

an evaluation of the housing 

requirements based on limitations to the 

Airframe rating. This would allow for 

the certification of a repair station with 

an Airframe rating, limited to the 

performance of maintenance such as 

simple daily scheduled checks or some 

work limited to aircraft interiors, to not 

have housing to enclose the entire 

aircraft. Repair stations currently 

performing work under a line 

maintenance authorization could be 

provided appropriate housing relief by 

this proposed section if they otherwise 

meet the requirements of part 145. This 

change would provide clarity and some 

relief in not requiring that the entire 

airframe be enclosed if the FAA 

determines the repair station provides 

adequate environmental protection for 

the work being performed. This option 

would be available only for repair 

stations with an Airframe rating with 

limitations. If a repair station has an 

Airframe rating with no limitations or 

limitations allowing work on 

substantially an entire airframe, it 

would be required to have suitable 

permanent housing to enclose the 

largest aircraft for which it is rated. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30068 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

ii. Permanent Location 

Paragraph (a)(1) of § 145.103 requires 

each certificated repair station to 

provide housing for the facilities, 

equipment, materials, and personnel 

consistent with its ratings. It has long 

been FAA policy that a repair station 

must have a permanent fixed location 

from which to operate. There have been 

occasions where the housing used to 

obtain certification was either 

relinquished by the certificate holder to 

the facility owner, or further sub-leased 

for other purposes rendering the repair 

station essentially unable to perform the 

maintenance for which it was 

certificated. The FAA believes it is 

necessary to reinforce the need for 

repair stations to provide assurance that 

work is performed adequately and to the 

manufacturer’s standards. This means 

protection of workers from unfavorable 

environmental conditions so that their 

performance and the airworthiness of 

the articles they are maintaining are not 

adversely affected. Repair stations 

would be required to provide suitable 

and permanent housing to protect the 

articles being maintained from 

contamination, foreign object debris, or 

conditions that may promote corrosion 

or other deteriorating conditions. 

Therefore, the FAA proposes to revise 

this section to require ‘‘suitable 

permanent’’ housing. A requirement for 

permanent housing refers not only to 

the construction of the facility, but also 

to the fact that the certificate holder 

must have sole operational control at all 

times of the housing it uses to obtain 

certification, either by ownership or by 

contract. The FAA understands that 

repair stations may share the same 

hangar or building, and this would still 

be allowed under this proposal. 

However, these repair stations may not 

share the same space in that hangar or 

building and each repair station must 

have full control of its space at all times. 

In addition, it must be clearly defined 

as to what space is under the control or 

contract of each repair station and this 

space must be clearly defined in each 

repair station’s manual as required in 

proposed § 145.1209(b). 

iii. Multiple Fixed Locations 

The FAA is also proposing to add a 

new § 145.1103(d) to allow a repair 

station to use multiple fixed locations in 

performing maintenance, preventive 

maintenance, and alterations under its 

repair station certificate. Additional 

fixed locations are not recognized in the 

current rule. This has led to inconsistent 

or non-authorization of the use of 

additional permanent locations. Repair 

stations often find it necessary to use 

locations other than the primary facility 

for environmental reasons (such as 

noise abatement for an engine overhaul 

shop doing test runs). In recognition of 

this need, additional fixed locations 

could be authorized if: 

• The repair station applies for and 

receives approval of additional fixed 

locations. 

• The location is within the 

geographic boundaries of the certificate 

holding district office. 

• The location is permanently affixed 

and is under the managerial control and 

authority of the repair station certificate. 

• The maintenance functions 

performed at the additional fixed 

locations are in support of and within 

the scope of the ratings listed on the 

repair station operations specifications. 

If a fixed location were located 

outside of the geographic boundary of 

the FAA office with oversight 

responsibilities, the additional fixed 

location either would have to be 

certificated as a satellite repair station 

and meet the requirements of proposed 

§ 145.1107, or it would require its own 

repair station certificate under the 

provisions of proposed § 145.1051 and 

§ 145.1053. 

iv. Additional Proposed Changes 

The FAA is also proposing, in 

§ 145.1103(a)(2), to delete the reference 

to specialized services currently found 

in § 145.103(a)(2). When used in 

conjunction with maintenance, 

preventive maintenance, and 

alterations, the reference to specialized 

services is redundant because complete 

maintenance of an article includes all 

necessary services. Finally, the FAA is 

also proposing to include protection of 

articles in § 145.1103(a)(2)(iv). 

Currently, a repair station’s facility is 

required to include sufficient space to 

segregate articles and materials stocked 

for installation from those undergoing 

maintenance or alterations. The FAA is 

proposing to change ‘‘segregate articles 

* * * ’’ in current § 145.103(a)(2)(iv) to 

‘‘segregate and protect articles * * *.’’ 

in § 145.1103(a)(2)(iv) to be consistent 

with the intent not only to segregate but 

also to protect articles as stated in 

current § 145.103(a)(2)(i) and in 

proposed § 145.1103((a)(2)(i) ‘‘for the 

proper segregation and protection of 

articles during all maintenance, 

preventive maintenance, or alterations.’’ 

It is inconsistent to require articles to be 

protected during maintenance but not 

require them to be protected in storage 

prior to being used in maintenance. 

To ensure that the housing and other 

environmental protections continue in 

force, the FAA is proposing to change 

the phrase in the first line of 

§ 145.103(a) from ‘‘repair station must 

provide-* * *’’ to ‘‘repair station must 

provide and maintain- * * *’’ in 

proposed § 145.1103(a). 

Finally, a grammatical error currently 

exists in § 145.103(a)(2)(ii) that the FAA 

would correct in proposed 

§ 145.1103(a)(2)(ii) by adding the word 

‘‘of’’ near the end of the sentence so that 

it reads ‘‘alteration of articles * * *.’’ 

h. Satellite Repair Stations (Current 

§ 145.107/Proposed § 145.1107) 

In proposed § 145.1107(a), the FAA 

proposes to remove the current 

restriction in § 145.107(a)(1) that a 

satellite repair station may not hold a 

rating not held by the certificated repair 

station with managerial control. The 

FAA believes that the agency should not 

impose these restrictions on satellite 

repair stations. 

Additionally, the FAA proposes to 

require that an applicant for a satellite 

repair station submit the same repair 

station and quality control system 

manuals as the repair station with 

managerial control (proposed 

§ 145.1107(a)(2)). The satellite repair 

station would have to identify any 

specific processes or procedures unique 

to the satellite repair station in 

appendices or sections of the manuals. 

The other new paragraphs proposed 

in § 145.1107(a) would require a 

satellite repair station to: 

• Submit the same training program 

as the repair station with managerial 

control, with processes or procedures 

unique to the satellite or managerial 

repair station identified (proposed 

paragraph (a)(3)). 

• Demonstrate compliance with its 

manual and any additional manual 

sections applicable to the satellite 

(proposed paragraph (a)(4)). 

• Meet the housing and facility 

requirements of proposed § 145.1103 

since it is a separately certificated repair 

station (proposed paragraph (a)(5)). 

• Have its own facility in a location 

with a physical address other than the 

repair station with managerial control 

(proposed paragraph (a)(6)). 

Finally, the requirement currently in 

§ 145.107(a)(2) that the satellite repair 

station meet the requirements for each 

rating it holds would be retained in 

proposed § 145.1107(a)(1). 

i. General (Current § 145.101/Proposed 

§ 145.1101) 

The FAA proposes to add tools and 

test apparatus to the items that a repair 

station must provide under proposed 

§ 145.1101. Tools and test apparatus are 

added for consistency with the 

maintenance performance requirements 

of § 43.13(a). 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30069 

The FAA also proposes to add the 

word ‘‘any’’ to near the end of the 

sentence so that it reads ‘‘any rating the 

repair station holds.’’ 

j. Equipment, Materials, and Data 

Requirements (Current § 145.109/ 

Proposed 145.1109) 

The FAA is proposing to add test 

apparatus and data to the list of items 

that a repair station would have to have 

on the premises and under its control 

when it is performing work requiring its 

use. This would remove potential 

uncertainty surrounding whether a 

necessary piece of test apparatus or data 

was considered to be ‘‘equipment,’’ 

‘‘tools,’’ or neither. In addition, 

including test apparatus would be 

consistent with the requirements in 

§ 43.13(a). Accordingly, the FAA is 

proposing to revise the section heading 

to include test apparatus. 

The FAA is also proposing to include 

an element of the relief provided in 

current § 145.51(b) pertaining to 

meeting the equipment requirement by 

having a contract with another person to 

make the equipment available when the 

work it requires is being performed (see 

proposed § 145.1109(b)). The issue of 

whether all the equipment must be on 

site for initial inspection was discussed 

above in the context of the agency’s 

proposing to delete the contract 

provision from the initial certification 

requirements in proposed § 145.1051(b). 

Although the agency believes it is 

important during initial certification to 

observe all the necessary equipment, 

tools, and apparatus for its placement 

on site and to evaluate an applicant’s 

ability to use it, the FAA agrees with 

previous commenters who voiced 

concerns about not having to purchase 

expensive, seldom used equipment and 

to have it permanently in place when 

they could instead obtain it through 

contract when needed. 

The relief proposed in § 145.1109(b) 

would allow a repair station to meet the 

equipment, tools, and test apparatus 

requirement of proposed § 145.1109(a) 

for specialized and rarely used 

equipment, tools, and test apparatus if 

the repair station demonstrates to the 

FAA that it has made arrangements with 

another person to make those items 

available when their use is required. All 

equipment must be in place during the 

demonstration and inspection phase of 

certification. 

Currently, § 145.109(d) lists certain 

documents that repair stations must 

keep that are necessary for performing 

maintenance, preventive maintenance, 

or alterations. It requires that the 

documents be ‘‘current and accessible 

when the relevant work is being done.’’ 

A strict reading of the requirement that 

these documents be current has created 

unnecessary compliance and 

enforcement issues. A recent FAA legal 

interpretation clarified that ‘‘current’’ in 

this context means ‘‘up to date,’’ i.e. the 

most recent version (revision) of the 

document (e.g. maintenance manual) 

issued by the manufacturer. This is a 

paperwork requirement only, as the 

same interpretation made clear that if a 

maintenance provider used a prior 

version/revision of a manual in 

performing maintenance, there would 

be no violation of the maintenance 

performance rules unless the FAA could 

show that the data used was no longer 

acceptable. This is so because of the 

flexibility provided in the maintenance 

regulations. For example, the 

performance standards set forth in 

§ 43.13(a) provides that the person 

performing maintenance shall use the 

current manufacturer’s maintenance 

manual or Instructions for Continued 

Airworthiness [ICA], ‘‘or other methods, 

techniques, and practices acceptable to 

the Administrator * * *.’’ 

Enforcement issues have arisen 

because some inspectors have 

concluded that the requirement to have 

a document be ‘‘current and accessible’’ 

when work is being done means that the 

most up-to-the-minute manual revision 

be incorporated into the repair station’s 

system even though such immediate 

incorporation may not be realistic. This 

can be due to a number of real-world 

constraints, (e.g., mail delays, revision 

publishing and distribution logistics, 

and export constraints pertaining to 

technical data). 

The housekeeping means for assuring 

appropriate compliance is contemplated 

in the current rule through the repair 

station’s quality control system. 

Currently, § 145.211(a) requires that 

each repair station establish and 

maintain a quality control system 

acceptable to the FAA that ensures the 

airworthiness of the articles being 

maintained. Section 145.211(c) provides 

that, as part of a repair station’s 

acceptable quality control system, the 

repair station must keep current a 

quality control manual in a format 

acceptable to the FAA, and specifies 

what that manual must include. Section 

145.211(c)(1)(v) provides specifically 

that the manual include a description of 

the procedures used for ‘‘[e]stablishing 

and maintaining current technical data 

for maintaining articles.’’ 

In developing acceptable procedures 

for assuring the currency of the 

technical data, repair stations typically 

work with their local Certificate Holding 

District Offices (CHDOs) to tailor 

procedures that consider realistic time 

constraints to incorporate manual 

revisions and other changes/updates 

into their systems. So long as a repair 

station and its CHDO have established 

and agreed to realistic procedures for 

establishing and maintaining current 

data, it would be anomalous for an 

inspector to threaten enforcement action 

citing § 145.109(d) because a 

manufacturer had issued a revision that 

the repair station had not reasonably, in 

following its FAA-accepted quality 

control system, incorporated into its 

manual system. 

In view of these considerations, and 

the fact that proposed § 145.1109(a) 

would require repair stations to have the 

technical data, etc., to perform their 

maintenance in accordance with part 

43, a specific list of documents such as 

that found in current § 145.109(d) 

would be redundant and possibly 

limiting. Therefore, because proposed 

§ 145.1109(a) requires the technical 

data, equipment, tools, test apparatus, 

and materials required by part 43, we 

are deleting subparagraph § 145.109(d) 

since it is inclusive in subparagraph 

§ 145.1109(a). 

k. Supervisory Personnel Requirements 

(Current § 145.153/Proposed § 145.1153) 

Section 145.153(a) requires 

supervisors to oversee the work 

performed by any individuals who are 

unfamiliar with the methods, 

techniques, practices, aids, equipment, 

and tools used to perform maintenance. 

The FAA is proposing to simplify this 

requirement to specify that supervisors 

must be present to oversee the work 

being performed by the repair station 

(see proposed § 145.1153(a). 

Section 145.153(b)(1) requires each 

supervisor employed by a repair station 

located inside the United States to be 

certificated under part 65. Supervisors 

may supervise only as allowed by the 

privileges of the certificate held as 

provided in part 65. For example, a 

supervisor certificated with only a 

Powerplant rating may not supervise 

personnel doing airframe maintenance, 

as the Powerplant rating does not 

provide that privilege. 

The FAA is proposing in 

§ 145.1153(b)(1) to revise this 

requirement to state that the supervisor 

be appropriately certificated under part 

65 for the work being supervised. Prior 

to the 2001 rule change, the language 

was clear in § 145.39(d): ‘‘Each person 

who is directly in charge of the 

maintenance functions of a repair 

station must be appropriately 

certificated under part 65 * * *’’. The 

omission of ‘‘appropriately’’ in 2001 

was an oversight that the FAA will 

correct by reinserting ‘‘appropriately 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30070 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

certificated under part 65’’ where such 

certification under part 65 is required. 

The appropriateness of the certificate is 

based in the privilege of the mechanic 

or repairman certificate issued under 

part 65 subpart D or E. For example, a 

supervisor who holds a mechanic 

certificate with airframe and powerplant 

ratings issued under part 65 would not 

be appropriately certificated to 

supervise work on instruments. A 

supervisor would need to hold a 

repairman certificate to supervise work 

on instruments. Currently, 

§ 145.153(b)(2) contains a different set of 

qualifications for a supervisor employed 

by a repair station located outside the 

United States. For example, a supervisor 

in a foreign repair station is not required 

to be appropriately certificated under 

part 65. To eliminate these two 

dissimilar standards, the FAA is 

proposing two alternative paths for 

supervisor qualification in a repair 

station located outside the United 

States. The first would require the 

supervisor to have the appropriate 

certification under part 65; the second 

would require the supervisor to meet 

the repairman eligibility requirements of 

§ 65.101(a)(1)(2)(3) and (5) (see 

proposed § 145.1153(b)(2)(i) and (ii)). 

Finally, § 145.153(c) requires repair 

stations to ensure that each supervisor 

understands, reads, and writes English. 

The FAA is proposing in § 145.1153(c) 

that these supervisors also be able to 

speak English. This would help to 

confirm that supervisors read and 

understand English. 

l. Inspection Personnel Requirements 

(Current § 145.155/Proposed § 145.1155) 

Section 145.155 sets forth the 

experience requirements for inspection 

personnel. Currently, this section 

requires only that inspectors be able to 

understand, read, and write English. 

The FAA is proposing to add a 

requirement to proposed § 145.1155(b) 

that inspectors be able to speak English 

as well. As stated above, the FAA 

believes this would help to confirm that 

these inspection personnel read and 

understand English. 

Section 145.155(a)(2) currently has 

the word ‘‘and’’ at the end of the 

section. This is an error as there is no 

§ 145.155(a)(3). This error would not be 

carried over to proposed 

§ 145.1155(a)(2) as the subsequent 

proposed § 145.1155(b) stands alone. 

m. Personnel Authorized To Approve an 

Article for Return To Service (Current 

§ 145.157/Proposed § 145.1157) 

Section 145.157 sets forth the 

experience requirements for the person 

authorized to approve an article for 

return to service. Section 145.157(a) 

requires each person authorized to 

approve an article for return to service 

employed by a repair station located 

inside the United States to be 

certificated under part 65. For the 

reasons discussed above under 

proposed § 145.1153, the FAA is 

proposing in § 145.1157(b) that each 

person authorized to approve an article 

for return to service be appropriately 

certificated under part 65. The 

appropriateness of the certificate is 

based in the privilege of the mechanic 

or repairman certificate issued under 

part 65 subpart D or E. 

Currently, § 145.157(b) contains a 

different set of qualifications for a 

person authorized to approve an article 

for return to service employed by a 

repair station located outside the United 

States. To harmonize these two 

dissimilar standards as much as 

possible, the FAA is proposing in 

§ 145.1157(c) to require those persons 

employed by a repair station located 

outside the United States to meet either 

the certificate requirements of proposed 

§ 145.1157(a) or the eligibility 

requirements of § 65.101(a)(1), (2), (3) 

and (5). 

Section 145.157(c) requires that a 

repair station ensure that each person 

authorized to approve an article for 

return to service understands, reads, 

and writes English. For the reasons 

discussed above, the FAA is proposing 

in § 145.1157(d) that these persons also 

be able to speak English. 

Finally, the FAA believes the 

requirements in current § 145.157 are 

set forth in a cumbersome manner. 

Therefore, the FAA is proposing to 

rearrange these requirements in 

proposed § 145.1157. 

n. Records of Management, Supervisory, 

and Inspection Personnel (Current 

§ 145.161/Proposed § 145.1161) 

Section 145.161 sets forth the 

management, supervisory, and 

inspection personnel records that a 

repair station must maintain and make 

available to the FAA. 

Section 145.161(a)(3) requires each 

repair station to maintain a roster of 

personnel authorized to sign a 

maintenance release for approving a 

maintained or altered article for return 

to service. To be consistent with the use 

of the term approval for return to service 

in §§ 43.5 and 43.7, and to eliminate 

confusion arising from the use of 

‘‘maintenance release for approving an 

article,’’ the FAA is proposing to change 

this requirement to a roster of personnel 

authorized to approve for return to 

service a maintained or altered article 

(see proposed § 145.1161(a)(3)). 

Section 145.161(a)(4) requires each 

repair station to maintain a summary of 

specified information on the employees 

listed in the rosters required by 

§§ 145.161(a)(1) through (a)(3). Section 

145.161(a)(4)(iii) requires this summary 

to include past relevant employment 

with names of employers and periods of 

employment. The FAA is proposing in 

§ 145.1161(a)(4)(iii) to require that past 

positions and types of maintenance 

performed be included in this format. 

This would confirm the relevancy of the 

listed past employment. 

o. Training Requirements (Current 

§ 145.163/Proposed § 145.1163) 

Section 145.163 contains the 

requirements for a repair station’s 

employee training program. The FAA is 

proposing in § 145.1163(a) to delete the 

implementation date requirements of 

§ 145.163(a) as this is no longer 

applicable. 

The FAA is also proposing that the 

training program requirements in 

§ 145.163(b) be revised in proposed 

§ 145.1163(b). Currently, the training 

program must ensure that each 

employee assigned to perform 

maintenance, preventive maintenance, 

or alterations, and inspection functions 

is capable of performing the assigned 

task. The FAA believes that the current 

requirement is too broad and lacks 

specific elements. Training in human 

factors, federal regulations, and repair 

station manuals, procedures, and forms 

are minimum subject areas that should 

be covered in all training programs 

submitted for approval. Therefore, the 

FAA is proposing in § 145.1163(b) to 

require that the training program ensure 

that employees who perform 

maintenance, preventive maintenance, 

and alterations be (1) capable of 

performing the assigned task, (2) trained 

in human factors relevant to aviation 

maintenance, (3) trained in the Federal 

Aviation Regulations as they relate to 

Part 145, and (4) trained in the repair 

station’s manuals, procedures, and 

forms. 

The FAA is also proposing clarifying 

changes to § 145.163(d) in proposed 

§ 145.1163(d) resulting in the removal of 

a repetitive ‘‘to its’’. 

p. Hazardous Materials Training 

(Current § 145.165/Proposed § 145.1165) 

Section 145.165 sets forth the 

requirements for a repair station’s 

employee hazardous materials training 

program. 

Section 145.165(b) sets forth the job 

functions that an employee may not 

perform or directly supervise without 

having received appropriate hazardous 

materials training. Over the years, the 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30071 

FAA has found that the phrase ‘‘may 

not’’ has not been interpreted as a 

complete prohibition of the action to 

which it is linked. To correct this 

ambiguity, the FAA is proposing in 

§ 145.1165(b) to change the phrase ‘‘may 

not’’ to ‘‘shall not.’’ 

q. Privileges and Limitations of 

Certificate (Current § 145.201/Proposed 

§ 145.1201) 

Section 145.201 sets forth the 

privileges and limitations associated 

with a repair station certificate. 

Section 145.201(a)(2) allows a repair 

station to arrange with another person to 

perform the work for which the repair 

station is rated. It also contains certain 

requirements if that person is not 

certificated under part 145. The FAA is 

proposing in § 145.1201 to clarify that if 

a repair station arranges for another 

person to perform work for the repair 

station it must comply with proposed 

§ 145.1217 (Contract Maintenance). This 

would clarify the authority of the repair 

station to contract maintenance to 

another person and the responsibility it 

has if it chooses to do so. 

The current limitation in § 145.201(b) 

providing that a repair station may not 

maintain or alter any article for which 

it is not rated has caused confusion 

concerning the responsibilities of repair 

stations and their oversight by the FAA. 

Part 145 contains the rules repair 

stations must follow when working on 

articles to which part 43 applies, yet 

§ 145.201(b) is drafted broadly and 

would seem to prohibit work on articles 

not governed by part 43. Rather than 

proposing an amendment that would 

explain in the text of the paragraph that 

the prohibition applies only to articles 

governed by part 43, the FAA proposes 

to clarify the issue by combining the 

text currently in §§ 145.201(b) and (c) 

into proposed § 145.1201(b). This would 

provide a single list of when a repair 

station may not approve an article for 

return to service. 

r. Repair Station Manual (Current 

§ 145.207/Proposed § 145.1207) 

Section 145.207 contains the 

requirement for a repair station manual 

and sets forth a repair station’s 

obligations for making its manual 

accessible to its personnel and 

providing current copies to its FAA 

district office, while Section 145.211 

contains the requirement for a quality 

control manual. For readability and to 

eliminate repetition, the FAA is 

proposing in § 145.1207 to address 

similar requirements for each manual in 

a combined introductory section. The 

FAA will also simplify the listing of 

manual requirements by removing the 

repeated preliminary term ‘‘A 

certificated repair station must * * *’’ 

currently in each paragraph of 

§ 145.207. The FAA also proposes to 

add an introductory statement ‘‘A 

certificated repair station must:’’. To 

recognize the combined introduction, 

section 145.1207 is titled Repair Station 

and Quality Control Manuals. 

s. Repair Station Manual Contents 

(Current § 145.209/Proposed § 145.1209) 

The content requirements for a repair 

station’s manual are currently located in 

§ 145.209. Of the 11 listed paragraphs, 

seven require listing procedures and 

three require descriptions. The FAA is 

proposing to consolidate and resequence the requirements in 

§ 145.209(b), (c) and (d) and include 

updated references in proposed 

§ 145.1209. This consolidation would 

eliminate repetitive terms (‘‘Procedures 

for’’ and ‘‘A description of’’), reduce the 

number of paragraphs from eleven to 

five, and require a resequencing. 

The FAA is also proposing to revise 

the text currently in § 145.209(d)(1) in 

proposed § 145.1209(d)(1) to add 

procedural requirements to the repair 

station manual for FAA approval of 

capability list changes when selfevaluation is not authorized. Proposed 

§ 145.1209(d)(2) would also be revised 

to include what would be expected of a 

repair station when performing a selfevaluation. 

Finally, the FAA is proposing to add 

a requirement in § 145.1209(d)(2)(iv) 

that repair stations retain 

documentation of the self-evaluation for 

two years. 

t. Quality Control System (Current 

§ 145.211/Proposed § 145.1211) 

This section would remain essentially 

unchanged, with the exception of 

adding requirements for suspected 

unapproved parts and ensuring 

maintenance not completed as a result 

of shift change or similar interruption is 

properly completed. 

u. Inspection of Maintenance, 

Preventive Maintenance, or Alterations 

(Current § 145.213/Proposed § 145.1213) 

Section 145.213(d) states that only an 

employee certificated under part 65 is 

authorized to sign off on final 

inspections and maintenance releases 

for the repair stations. The FAA is 

proposing to remove this paragraph in 

proposed § 145.1213 as it is repetitive 

and conflicts with the requirements of 

proposed § 145.1157. The FAA is also 

proposing to remove the term 

‘‘maintenance release’’ from proposed 

§ 145.1213 to be consistent with part 43. 

v. Recordkeeping (Current § 145.219/ 

Proposed § 145.1219) 

Section 145.219 sets forth the 

recordkeeping requirements for a repair 

station. Section 145.219(b) requires a 

repair station to provide a copy of the 

maintenance release to the owner or 

operator of the article on which the 

work was performed. To be consistent 

with § 43.5 (Approval for return to 

service after maintenance, preventive 

maintenance, rebuilding, or alteration) 

and § 43.7 (Persons authorized to 

approve aircraft, airframes, aircraft 

engines, propellers, appliances, or 

component parts for return to service 

after maintenance, preventive 

maintenance, rebuilding, or alteration), 

the FAA is proposing in § 145.1219 to 

replace the term ‘‘maintenance release’’ 

with ‘‘approval for return to service.’’ 

w. Consistency Changes in Parts 43 and 

91 

Based on the above proposals, we are 

also proposing changes to the following 

sections in parts 43 and 91: Appendix 

B of part 43, § 91.171, § 91.319, § 91.327, 

§ 91.411, § 91.413, and Appendix A to 

Part 91. These sections/appendices 

currently reference some element of a 

repair station’s operations that would be 

changed based on the proposals in this 

document. As such, these sections/ 

appendices would need to be modified 

to be consistent with such proposals. 

III. Regulatory Evaluation, Regulatory 

Flexibility Determination, International 

Trade Impact Assessment, and 

Unfunded Mandates Assessment 

Changes to Federal regulations must 

undergo several economic analyses. 

First, Executive Order 12866 and 

Executive Order 13563 direct that each 

Federal agency shall propose or adopt a 

regulation only upon a reasoned 

determination that the benefits of the 

intended regulation justify its costs. 

Second, the Regulatory Flexibility Act 

of 1980 (Pub. L. 96–354) requires 

agencies to analyze the economic 

impact of regulatory changes on small 

entities. Third, the Trade Agreements 

Act (Pub. L. 96–39) prohibits agencies 

from setting standards that create 

unnecessary obstacles to the foreign 

commerce of the United States. In 

developing U.S. standards, this Trade 

Act requires agencies to consider 

international standards and, where 

appropriate, that they be the basis of 

U.S. standards. Fourth, the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4) requires agencies to prepare a 

written assessment of the costs, benefits, 

and other effects of proposed or final 

rules that include a Federal mandate 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30072 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

likely to result in the expenditure by 

State, local, or tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more annually (adjusted 

for inflation with the base year of 1995). 

This portion of the preamble 

summarizes the FAA’s analysis of the 

economic impacts of this proposed rule. 

In conducting these analyses, FAA 

has determined that this proposed rule: 

(1) Has benefits that justify its costs, (2) 

is not an economically ‘‘significant 

regulatory action’’ as defined in section 

3(f) of Executive Order 12866, (3) is 

‘‘significant’’ as defined in DOT’s 

Regulatory Policies and Procedures; (4) 

would not have a significant economic 

impact on a substantial number of small 

entities; (5) would not create 

unnecessary obstacles to the foreign 

commerce of the United States; and (6) 

would not impose an unfunded 

mandate on state, local, or tribal 

governments, or on the private sector by 

exceeding the threshold identified 

above. These analyses are summarized 

as follows. 

Who Is Potentially Affected by This 

Proposed Rule 

There are 4,105 repair stations in the 

United States and 739 repair stations in 

64 foreign countries that the FAA has 

certificated to work on N-registered 

airplanes. For purposes of this analysis, 

of those 4,105 repair stations, 1,838 are 

defined to be ‘‘small’’ with 10 or fewer 

employees, 1,913 are defined to be 

‘‘medium-sized’’ with between 11 and 

199 employees, and 354 are defined to 

be ‘‘large’’ with 200 or more employees. 

The FAA also forecasts that 106 repair 

stations in the United States will 

annually seek to be certified by the 

FAA. Finally, although this proposed 

rule would also affect existing and 

future repair stations in foreign 

countries, Executive Order 12866 

requires the FAA to analyze the 

economic impacts of this proposed rule 

only on repair stations located in the 

United States. 

Total Benefits and Costs of This Rule 

The total costs of this proposal would 

be relatively small ($14.493 million over 

a 10-year period, spread amongst 

approximately 5,000 repair stations), but 

it is difficult to quantify the benefits. We 

believe, however, that the potential 

benefits, which derive in part from (1) 

Giving the FAA authority to (a) deny a 

repair station certificate to an applicant 

whose past performance resulted in a 

revocation, and (b) revoke all FAAissued certificates held by any person 

who makes fraudulent or intentionally 

false entries or records; (2) defining 

what operations specifications are and 

providing a well-defined process for 

both industry and the FAA to amend 

them; and (3) updating the ratings 

system, justify the costs of the proposed 

rule. 

The current rule provides that, with 

certain unrelated restrictions, an 

applicant who meets the requirements 

of the rule is entitled to a repair station 

certificate regardless of a past regulatory 

non-compliance history, no matter how 

egregious. Currently an applicant, based 

on a successful showing of meeting the 

minimum requirements for a certificate 

(e.g., the personnel, housing, facilities, 

equipment, materials, and data) is 

entitled to a certificate regardless of past 

negative performance, such as multiple 

rule violations or having a certificate 

revoked. This entitlement provides no 

latitude to the FAA. Based on a fatal 

accident that likely would not have 

occurred if the FAA had a mechanism 

in place to deny a certificate to a ‘‘bad 

actor,’’ the National Transportation 

Safety Board (NTSB) identified this 

entitlement as a potential safety issue, 

and the FAA agrees. 

The FAA is aware of instances where 

persons whose repair station certificates 

were revoked continued to operate by 

obtaining new repair station certificates 

shortly after the revocation process. In 

one of these situations, a key 

management official with decisionmaking authority (chief inspector) from 

a repair station that lost its certificate for 

serious maintenance-related violations 

applied for and received a new repair 

station certificate. That individual also 

became the chief inspector at the newlycertificated repair station. While under 

the chief inspector’s direction, 

employees of the newly-certificated 

station performed improper 

maintenance on a number of propellers, 

one of which came apart in flight 

causing a fatal accident. 

As a result of this accident, the 

National Transportation Safety Board 

(NTSB), in a Safety Recommendation 

dated February 9, 2004 (A–04–01 and 

A–04–02), expressed concern that the 

FAA did not have a mechanism for 

preventing individuals who were 

associated with a previously revoked 

repair station, such as the owner 

described above, from continuing to 

operate through a new repair station. 

The NTSB noted that the FAA has such 

a mechanism in place for air carriers 

and other commercial operators. Section 

119.39(b) allows the FAA to deny an 

application for a Part 121 or 135 air 

carrier or operating certificate. This can 

occur if the applicant previously held a 

certificate that was revoked or if a 

person who exercised control over (or 

held a key management position in) a 

previously revoked operator will be 

exercising control over (or hold a key 

management position in) the new 

operator. 

With total present-value costs over a 

ten year period of $13.045 million, this 

rule would be cost-beneficial if it 

prevents at least three fatalities over 10 

years. This benefit could accrue from 

preventing one or more fatal accidents 

during the ten-year period, depending 

on the number of persons who would 

have been on board. The FAA believes 

that one or more such accidents are 

likely to occur during that period and 

this rule is necessary to prevent them. 

If this proposed provision had been in 

place prior to the accident described 

above, the FAA would have denied the 

repair station certificate application, 

and the faulty propeller maintenance 

would not have occurred—thus, neither 

would the accident. 

In concurrence with an NTSB 

recommendation, the proposed rule 

would change this entitlement to an 

eligibility that will provide the FAA the 

ability to deny a certificate application 

based on enforcement history, as is 

currently the case with air carrier 

applicants. Also, a repair station 

certificate is effective until surrendered, 

suspended, or revoked. A repair station 

under investigation could potentially 

surrender a certificate to terminate an 

ongoing investigation resulting in a lack 

of enforcement history. The NTSB 

recommended, and the FAA agrees, that 

a repair station should not be able to 

force the FAA to terminate an 

investigation by surrendering a 

certificate which would result in a lack 

of enforcement history. This history 

would be important evidence to support 

the agency’s denying a certificate under 

the previously described circumstances. 

In concurrence with the NTSB 

recommendation, the proposed rule 

would specify that a certificate 

surrender is not valid until the FAA 

accepts the certificate. The costs of 

being able to deny certification to an 

applicant with a history of noncompliance is minimal, but the benefits 

are the potential avoidance of accidents, 

thereby increasing the safety of the 

flying public. 

We also believe the current ratings 

system, which dates to the 1930’s and 

1940’s, does not adequately address the 

way current aircraft are constructed and 

maintained. The current ratings system 

hampers the FAA’s ability to 

appropriately rate repair stations, and it 

impedes repair stations’ ability to 

accurately describe the work they 

perform. The repair station community 

and the FAA have struggled, and 

continue to struggle, with the 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30073 

application of current technology and 

business practices in an antiquated rule. 

The proposed rule would accommodate 

current technologies and provide 

regulatory flexibility to accommodate 

future technological development. This 

would benefit the repair station 

community by applying modern, 

consistent, unambiguous terminology 

throughout the regulated industry. 

The proposed rule would also allow 

a repair station the option of either 

maintaining its current procedures in 

applying for a rating or providing the 

FAA with a capabilities list stating the 

products on which it can work. In 

recent years, some repair stations have 

preferred to develop a capabilities list, 

which can more efficiently be used to 

obtain FAA approvals for expanding 

product work. Repair stations would be 

allowed to use a capabilities list so long 

as the list follows the FAA format that 

would be developed. This format 

consistency would allow the FAA to 

more efficiently know exactly which 

repair stations are performing specific 

repairs. The FAA is unable to estimate 

this potential efficiency savings and 

requests data from the public on these 

benefits. 

The proposed rule would also allow 

a repair station the option of either 

maintaining its current procedures in 

applying for a rating or to supply the 

FAA with a capabilities list stating the 

products on which it can work. In 

recent years, some repair stations have 

preferred to develop a capabilities list, 

which can more efficiently be used to 

obtain FAA approvals for expanding 

product work. Repair stations would be 

allowed to use a capabilities list so long 

as the list follows the FAA format that 

would be developed. This format 

consistency would allow the FAA to 

more efficiently know exactly which 

repair stations are performing specific 

repairs. The FAA is unable to estimate 

this potential efficiency savings and 

requests data from the public. 

As seen in Table 1, during the 2011– 

2020 period of this analysis, the 

proposed rule would impose 

compliance costs of $14.493 million on 

existing and future repair stations, 

which have a present value of $13.045 

million using a 7 percent discount rate 

and a present value of $13.836 million 

using a 3 percent discount rate. 

TABLE 1—TOTAL AND PRESENT VALUE COMPLIANCE COSTS BY US REPAIR STATION SIZE

[2011–2020] 

[Millions of 2010 dollars] 

Repair station size 

(Number of employees) 

Number of 

repair stations 

Compliance costs 

Present value 

Total 7 Percent 3 Percent 

Small (1–10) .................................................................................................... 1,838 $1.949 $1.738 $1.852 

Medium (11–199) ............................................................................................. 1,913 5.226 4.699 4.987 

Large (200+) .................................................................................................... 354 7.318 6.608 6.997 

Total .......................................................................................................... 4,105 14.493 13.045 13.836 

As seen in Table 2, the FAA estimates 

that the average one-time compliance 

cost would be $1,146 for a small repair 

station, $2,848 for a medium-sized 

repair station, and $21,474 for a large 

repair station. 

TABLE 2—AVERAGE ONE-TIME COMPLIANCE COSTS FOR A REPAIR STATION BY REPAIR STATION SIZE

[2011–2020] 

Repair station size One-time 

Small ......................................... $1,146 

Medium ..................................... 2,848 

Large ......................................... 21,474 

Consequently, in light of the propeller 

accident and the NTSB recommendation 

based on it, the FAA believes that the 

proposed rule’s potential benefits would 

be greater than its potential compliance 

costs if it prevented an accident with at 

least three fatalities during the next ten 

years. 

Cost Assumptions and Sources of 

Information 

• Discount rates—7% and 3%. 

• Period of analysis—2011–2020. 

• Monetary values expressed in 2010 

dollars. 

Costs of This Rulemaking 

The proposed rule would impose 

compliance costs on repair stations to 

1. Apply for a rating; and 

2. Revise their manuals. 

As seen in Table 3, the estimated total 

compliance costs of the proposed repair 

station manual revision ($12.869 

million) would be approximately 88 

percent of the total compliance costs. 

TABLE 3—SUMMARY OF TOTAL AND PRESENT VALUES OF THE COMPLIANCE COSTS BY PROVISION AND BY REPAIR

STATION SIZE

[2011–2020] 

[Millions of 2010 dollars] 

Provision 

Compliance costs 

Present value 

Total 7 Percent 3 Percent 

Rating System Application ........................................................................................................... $1.624 $1.412 $1.524 

Repair Station Manual Revision .................................................................................................. 12.869 11.633 12.312 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30074 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

TABLE 3—SUMMARY OF TOTAL AND PRESENT VALUES OF THE COMPLIANCE COSTS BY PROVISION AND BY REPAIR

STATION SIZE—Continued 

[2011–2020] 

[Millions of 2010 dollars] 

Provision 

Compliance costs 

Present value 

Total 7 Percent 3 Percent 

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

Regulatory Flexibility Determination 

The Regulatory Flexibility Act of 1980 

(Pub. L. 96–354) (RFA) establishes ‘‘as a 

principle of regulatory issuance that 

agencies shall endeavor, consistent with 

the objectives of the rule and of 

applicable statutes, to fit regulatory and 

informational requirements to the scale 

of the businesses, organizations, and 

governmental jurisdictions subject to 

regulation. To achieve this principle, 

agencies are required to solicit and 

consider flexible regulatory proposals 

and to explain the rationale for their 

actions to assure that such proposals are 

given serious consideration.’’ The RFA 

covers a wide range of small entities, 

including small businesses, not-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 believes that this proposed 

rule would not have a significant impact 

on a substantial number of small entities 

for the following reason: 

The Small Business Administration 

classifies ‘‘small’’ entities based on 

either employment or annual revenue. 

For this proposed rule, a small entity is 

defined as ‘‘Other Support Activities for 

Air Transportation’’ (North American 

Industrial Classification System 488190) 

with revenues of $7 million or less. 

Revenue data compiled by Dun and 

Bradstreet indicates that of the repair 

stations for which data are available, 

2,354 repair stations have revenues of 

$7 million or less and that the average 

revenue per small entity is $1,272,500. 

The initial compliance cost to a small 

repair station would average about 

$4,000. This cost would be less than one 

percent of the average annual revenue 

and less than two percent of the annual 

revenue for firms that earn more than 

$200,000. 

Therefore, the FAA certifies that this 

proposed rule would not have a 

significant economic impact on a 

substantial number of small entities. 

The FAA solicits comments regarding 

this determination. 

Unfunded Mandates Assessment 

Title II of the Unfunded Mandates 

Reform Act of 1995 (Pub. L. 104–4) 

requires each Federal agency to prepare 

a written statement assessing the effects 

of any Federal mandate in a proposed or 

final agency rule that may result in an 

expenditure of $100 million or more (in 

1995 dollars) in any one year by State, 

local, and tribal governments, in the 

aggregate, or by the private sector; such 

a mandate is deemed to be a ‘‘significant 

regulatory action.’’ The FAA currently 

uses an inflation-adjusted value of 

$143.1 million in lieu of $100 million. 

This proposed rule does not contain 

such a mandate; therefore, the 

requirements of Title II of the Act do not 

apply. 

International Trade Impact Assessment 

The Trade Agreements Act of 1979 

(Pub. L. 96–39), as amended by the 

Uruguay Round Agreements Act (Pub. 

L. 103–465), prohibits Federal agencies 

from establishing standards or engaging 

in related activities that create 

unnecessary obstacles to the foreign 

commerce of the United States. 

Pursuant to these Acts, the 

establishment of standards is not 

considered an unnecessary obstacle to 

the foreign commerce of the United 

States, so long as the standard has a 

legitimate domestic objective, such as 

the protection of safety, and does not 

operate in a manner that excludes 

imports that meet this objective. The 

statute also requires consideration of 

international standards and, where 

appropriate, that they be the basis for 

U.S. standards. The FAA has assessed 

the potential effect of this proposed rule 

and determined that it would ensure the 

safety of the American public and does 

not exclude foreign repair stations that 

meet this objective. As a result, this rule 

is not considered as creating an 

unnecessary obstacle to foreign 

commerce. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3507(d)) requires that the 

FAA consider the impact of paperwork 

and other information collection 

burdens imposed on the public. 

According to the 1995 amendments to 

the Paperwork Reduction Act (5 CFR 

1320.8(b)(2)(vi)), an agency may not 

collect or sponsor the collection of 

information, nor may it impose an 

information collection requirement 

unless it displays a currently valid 

Office of Management and Budget 

(OMB) control number. 

This proposal contains a revision of a 

currently approved collection (OMB– 

2120–0682) subject to review by the 

Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3507(d)). The 

title, description, and number of 

respondents, frequency of the 

collection, and estimate of the annual 

total reporting and recordkeeping 

burden are shown below: 

Title: Repair Stations (14 CFR part 

145). 

Summary: Part 145 describes how to 

obtain a repair station certificate. The 

part also contains the rules a certificated 

repair station must follow related to its 

performance of maintenance, preventive 

maintenance, or alterations of an 

aircraft, airframe, aircraft engine, 

propeller, appliance, or component part 

to which part 43 applies. It also applies 

to any person who holds or is required 

to hold a repair station certificate issued 

under this part. 

Use: Specifically, the information is 

required from applicants who wish 

repair station certification. Applicants 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30075 

must submit the required data to the 

appropriate FAA District Office for 

review and acceptance/approval. If the 

information is satisfactory, an onsite 

inspection is conducted. When all Part 

145 requirements are met an air agency 

certificate and repair station operations 

specifications with appropriate ratings 

and limitations is issued. 

Part 145 is being updated and revised. 

The action is necessary because many 

portions of the current regulations do 

not reflect current repair station 

business practices, aircraft maintenance 

practices, or advances in aircraft 

technology. 

Respondents: There are 3,704 repair 

stations. 

Frequency: The FAA expects this to 

be a one-time burden on the affected 

public. 

Annual Burden Estimate: 

• Estimated average burden per 

employee: $31 for a One-Time 

Collection. 

• Estimated Annual Burden Hours: 0 

Hours. 

• Estimated Annual Burden Costs: $0. 

The agency is soliciting comments to: 

(1) Evaluate whether the proposed 

information requirement is necessary for 

the proper performance of the functions 

of the agency, including whether the 

information will have practical utility; 

(2) Evaluate the accuracy of the 

agency’s estimate of the burden; 

(3) Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

(4) Minimize the burden of collecting 

information on those who are to 

respond, including by using 

appropriate, automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology. 

Individuals and organizations may 

send comments on the information 

collection requirement to the address 

listed in the ADDRESSES section at the 

beginning of this preamble by August 

20, 2012. Comments also should be 

submitted to the Office of Management 

and Budget, Office of Information and 

Regulatory Affairs, Attention: Desk 

Officer for FAA, New Executive 

Building, Room 10202, 725 17th Street 

NW., Washington, DC 20053. 

IV. International Compatibility 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, it is FAA policy to 

conform to International Civil Aviation 

Organization (ICAO) Standards and 

Recommended Practices to the 

maximum extent practicable. The FAA 

has determined that there are no ICAO 

Standards and Recommended Practices 

that correspond to these proposed 

regulations. 

Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this proposed 

rule under the principles and criteria of 

Executive Order 13132, Federalism. We 

determined that this action would not 

have a substantial direct effect on the 

States, on the relationship between the 

national Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government, and, therefore, 

would not have federalism implications. 

B. Executive Order 13211, Regulations 

that Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA has analyzed this NPRM 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

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

have determined that it is not a 

‘‘significant energy action’’ under the 

executive order and it is not likely to 

have a significant adverse effect on the 

supply, distribution, or use of energy. 

Environmental Analysis 

FAA Order 1050.1E identifies FAA 

actions that are categorically excluded 

from preparation of an environmental 

assessment or environmental impact 

statement under the National 

Environmental Policy Act in the 

absence of extraordinary circumstances. 

The FAA has determined this proposed 

rulemaking action qualifies for the 

categorical exclusion identified in 

paragraph 312(d) and involves no 

extraordinary circumstances. 

Additional Information 

Comments Invited 

The FAA invites interested persons to 

participate in this rulemaking by 

submitting written comments, data, or 

views. We also invite comments relating 

to the economic, environmental, energy, 

or federalism impacts that might result 

from adopting the proposals in this 

document. The most helpful comments 

reference a specific portion of the 

proposal, explain the reason for any 

recommended change, and include 

supporting data. To ensure the docket 

does not contain duplicate comments, 

please send only one copy of written 

comments, or if you are filing comments 

electronically, please submit your 

comments only one time. 

We will file in the docket all 

comments we receive, as well as a 

report summarizing each substantive 

public contact with FAA personnel 

concerning this proposed rulemaking. 

Before acting on this proposal, we will 

consider all comments we receive on or 

before the closing date for comments. 

We will consider comments filed after 

the comment period has closed if it is 

possible to do so without incurring 

expense or delay. We may change this 

proposal in light of the comments we 

receive. 

Proprietary or Confidential Business 

Information 

Do not file in the docket information 

that you consider to be proprietary or 

confidential business information. Send 

or deliver this information directly to 

the person identified in the FOR FURTHER

INFORMATION CONTACT section of this 

document. You must mark the 

information that you consider 

proprietary or confidential. If you send 

the information on a disk or CD–ROM, 

mark the outside of the disk or CD–ROM 

and also identify electronically within 

the disk or CD–ROM the specific 

information that is proprietary or 

confidential. 

Under 14 CFR 11.35(b), when we are 

aware of proprietary information filed 

with a comment, we do not place it in 

the docket. We hold it in a separate file 

to which the public does not have 

access, and we place a note in the 

docket that we have received it. If we 

receive a request to examine or copy 

this information, we treat it as any other 

request under the Freedom of 

Information Act (5 U.S.C. 552). We 

process such a request under the DOT 

procedures found in 49 CFR part 7. 

Availability of Rulemaking Documents 

You can get an electronic copy of 

rulemaking documents using the 

Internet by— 

1. Searching the Federal eRulemaking 

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

2. Visiting the FAA’s Regulations and 

Policies Web page at http:// 

www.faa.gov/regulations_policies or 

3. Accessing the Government Printing 

Office’s Web page at http:// 

www.gpo.gov/fdsys/. 

You can also get a copy by sending a 

request to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. Make sure to 

identify the docket number or notice 

number of this rulemaking. 

You may access all documents the 

FAA considered in developing this 

proposed rule, including economic 

analyses and technical reports, from the 

internet through the Federal 

eRulemaking Portal referenced in 

paragraph (1). 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30076 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

List of Subjects in 14 CFR Part 43 

Aircraft, Aviation safety. 

List of Subjects in 14 CFR Part 91 

Aircraft, Airmen, Aviation safety, 

Reporting and recordkeeping 

requirements. 

List of Subjects in 14 CFR Part 145 

Air carriers, Air transportation, 

Aircraft, Aviation safety, Recordkeeping 

and reporting, Safety. 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend Chapter I of Title 14, 

Code of Federal Regulations, as follows: 

PART 43—MAINTENANCE, 

PREVENTIVE MAINTENANCE, 

REBUILDING, AND ALTERATION 

1. The authority citation for part 43 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701, 

44703, 44705, 44707, 44711, 44713, 44717, 

44725. 

2. Amend Appendix B by revising 

paragraph (b)(3) to read as follows: 

Appendix B to Part 43—Recording of 

Major Repairs and Major Alterations 

* * * * * 

(b) * * * 

(3) Give the aircraft owner an approval for 

return to service signed by an authorized 

representative of the repair station and 

incorporating the following information: 

* * * * * 

PART 91—GENERAL OPERATING AND 

FLIGHT RULES 

3. The authority citation for part 91 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 1155, 40103, 

40113, 40120, 44101, 44111, 44701, 44704, 

44709, 44711, 44712, 44715, 44716, 44717, 

44722, 46306, 46315, 46316, 46504, 46506– 

46507, 47122, 47508, 47528–47531, articles 

12 and 29 of the Convention on International 

Civil Aviation (61 Stat. 1180). 

4. Amend § 91.171 by revising 

paragraph (b)(1) to read as follows: 

§ 91.171 VOR equipment check for IFR 

operations. 

* * * * * 

(b) * * * 

(1) Use, at the airport of intended 

departure, an FAA-operated or 

approved test signal or a test signal 

radiated by an appropriately rated repair 

station or, outside the United States, a 

test signal operated or approved by an 

appropriate authority to check the VOR 

equipment (the maximum permissible 

indicated bearing error is plus or minus 

4 degrees); or 

* * * * * 

5. Amend § 91.319 by revising 

paragraph (g)(1) to read as follows: 

§ 91.319 Aircraft having experimental 

certificates: Operating limitations. 

* * * * * 

(g) * * * 

(1) Been inspected by an 

appropriately certificated person in 

accordance with the operating 

limitations issued as part of the 

airworthiness certificate for that aircraft; 

or 

* * * * * 

6. Amend § 91.327 by revising 

paragraphs (b)(1) and (2) and (c)(1) to 

read as follows: 

§ 91.327 Aircraft having a special 

airworthiness certificate in the light-sport 

category: Operating limitations. 

* * * * * 

(b) * * * 

(1) The aircraft is maintained by an 

appropriately certificated person in 

accordance with the applicable 

provisions of part 43 of this chapter; 

(2) A condition inspection is 

performed once every 12 calendar 

months by an appropriately certificated 

person in accordance with the operating 

limitations issued as part of the 

airworthiness certificate for that aircraft; 

* * * * * 

(c) * * * 

(1) Been inspected by an 

appropriately certificated person in 

accordance with the operating 

limitations issued as part of the 

airworthiness certificate for that aircraft 

and been approved for return to service 

in accordance with part 43 of this 

chapter; or 

* * * * * 

7. Amend § 91.409 by revising 

paragraph (d)(1) to read as follows: 

§ 91.409 Inspections. 

* * * * * 

(d) * * * 

(1) An appropriately certificated 

person or the manufacturer of the 

aircraft to supervise or conduct the 

progressive inspection. 

* * * * * 

8. Amend § 91.411 by revising 

paragraph (b)(2) to read as follows: 

§ 91.411 Altimeter system and altitude 

reporting equipment tests and inspections. 

* * * * * 

(b) * * * 

(2) An appropriately certificated 

person. 

* * * * * 

9. Amend § 91.413 by revising 

paragraph (c)(1) to read as follows: 

§ 91.413 ATC transponder tests and 

inspections. 

* * * * * 

(c) * * * 

(1) An appropriately certificated 

person. 

* * * * * 

10. Amend Appendix A to part 91.413 

by revising paragraph (b)(1) in section 4 

as follows: 

Appendix A to Part 91—Category II 

Operations: Manual, Instruments, 

Equipment, and Maintenance 

* * * * * 

4. Maintenance program 

* * * * * 

(b) * * * 

(1) It must be performed by an 

appropriately certificated person. 

* * * * * 

PART 145—REPAIR STATIONS 

11. The authority citation for part 145 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701– 

44702, 44707, 44709, 44717. 

12. Revise § 145.1 to read as follows: 

§ 145.1 Applicability. 

Subparts A through E of this part: 

(a) Expire and are reserved on [the 

date 24 months after the effective date 

of the rule]. 

(b) Apply to repair stations 

certificated prior to [the effective date of 

the rule] until such time as those repair 

stations apply for and are certificated 

under subparts F through J of this part, 

or [the date 24 months after the effective 

date of the rule] whichever occurs first. 

(c) Contain the rules a repair station 

certificated prior to [the effective date of 

the rule] must follow related to its 

performance of maintenance, preventive 

maintenance, or alterations of an 

aircraft, airframe, aircraft engine, 

propeller, appliance, or component part 

to which part 43 of this chapter applies, 

until such time as those repair stations 

must comply with subparts F through J 

of this part. It also applies to any person 

who holds out as an FAA-certified 

repair station certificate issued under 

this part. 

13. Amend § 145.3 by revising the 

introductory text to read as follows: 

§ 145.3 Definition of terms. 

For the purposes of subparts A 

through E, the following definitions 

apply: 

* * * * * 

14. Section 145.12 is added to subpart 

A to read as follows: 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30077 

§ 145.12 Repair station records: 

Falsification, reproduction, or alteration. 

(a) No person may make or cause to 

be made: 

(1) Any fraudulent or intentionally 

false entry in any record or report 

(including any application for a repair 

station certificate or rating) that is 

required to be made, kept, or used to 

show compliance with any requirement 

under this part; 

(2) Any reproduction, for fraudulent 

purpose, of any record or report 

(including any application for a repair 

station certificate or rating) under this 

part; or 

(3) Any alteration, for fraudulent 

purpose, of any record or report 

(including any application for a repair 

station certificate or rating) under this 

part. 

(b) The commission by any person of 

an act prohibited under paragraph (a) of 

this section is a basis for suspending or 

revoking the repair station certificate 

and any certificate, approval, or 

authorization issued by the FAA held by 

that person. 

15. Amend § 145.51 by revising 

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

§ 145.51 Application for certificate. 

(a) An application for a repair station 

certificate and rating must be made in 

accordance with § 145.1051. 

* * * * * 

(d) An application for an additional 

rating or amended repair station 

certificate must be made in accordance 

with § 145.1051. 

16. Amend § 145.53 by revising 

paragraph (a) to read as follows: 

§ 145.53 Issue of certificate. 

(a) Except as provided in paragraph 

(b), (c), or (d) of this section, a person 

who meets the requirements of subparts 

A through E of this part is entitled to a 

repair station certificate with 

appropriate ratings prescribing such 

operations specifications and 

limitations as are necessary in the 

interest of safety, until [the date 24 

months after the effective date of the 

rule] at which time any certificate 

issued under the requirements of 

subparts A through E of this part is no 

longer valid. 

* * * * * 

17. Amend § 145.55 by revising 

paragraphs (a), (b) and (c)(1) to read as 

follows: 

§ 145.55 Duration and renewal of 

certificate. 

(a) A certificate or rating issued to a 

repair station located in the United 

States, is effective from the date of issue 

until the repair station surrenders it or 

the FAA suspends or revokes it, or [the 

date 24 months after the effective date 

of the rule] whichever occurs first. 

(b) A certificate or rating issued to a 

repair station located outside the United 

States is effective from the date of issue 

until the last day of the 12th month after 

the date of issue unless the repair 

station surrenders the certificate or the 

FAA suspends or revokes it, but no 

longer than [the date 24 months after the 

effective date of the rule]. The FAA may 

renew the certificate or rating for 24 

months, but not beyond [the date 24 

months after the effective date of the 

rule] if the repair station has operated in 

compliance with the applicable 

requirements of part 145 within the 

preceding certificate duration period. 

(c) * * * 

(1) Submit its request for renewal no 

later than 30 days before the repair 

station’s current certificate expires. If a 

request for renewal is not made within 

this period, the repair station must 

follow the application procedures in 

§ 145.1051. 

* * * * * 

18. Amend § 145.57 by revising 

paragraphs (a) introductory text and (b) 

to read as follows: 

§ 145.57 Amendment to or transfer of 

certificate. 

(a) The holder of a repair station 

certificate must apply for any voluntary 

change to its certificate in accordance 

with § 145.1051. A change to the 

certificate must include certification in 

compliance with § 145.53(c) or (d), if 

not previously submitted. A certificate 

change is necessary if the certificate 

holder— 

* * * * * 

(b) If the holder of a repair station 

certificate sells or transfers its assets, the 

new owner must apply for certification 

in accordance with § 145.1051. 

19. Amend § 145.105 by revising 

paragraph (a) to read as follows: 

§ 145.105 Change of location, housing, or 

facilities. 

(a) A certificated repair station that 

makes any changes to its housing or 

facilities required by § 145.103 that 

could have a significant effect on its 

ability to perform the maintenance, 

preventive maintenance, or alterations 

under its repair station certificate and 

operations specifications must comply 

with § 145.1051. 

* * * * * 

20. Amend part 145 by adding new 

subpart F to read as follows: 

Subpart F—General 

145.1001 Applicability. 

145.1003 Definition of terms. 

145.1005 Certificate and operations 

specifications requirements. 

145.1012 Repair station records: 

Falsification, reproduction, or alteration. 

Subpart F—General 

§ 145.1001 Applicability. 

Subparts F through J of this part: 

(a) Describe how to obtain a repair 

station certificate after [effective date of 

rule]. 

(b) Contain the rules a repair station 

receiving a certificate must follow 

related to its performance of 

maintenance, preventive maintenance, 

and alterations of civil aircraft, 

airframes, aircraft engines, propellers, 

appliances, or component parts to 

which part 43 of this chapter applies. 

(c) Apply to any person who holds 

out as an FAA-certificated repair 

station. 

§ 145.1003 Definition of terms. 

For the purposes of subparts F 

through J of this part, the following 

definitions apply: 

(a) Accountable manager means the 

person designated by the certificated 

repair station who is responsible for and 

has the authority over all repair station 

operations that are conducted under 

part 145, including ensuring that repair 

station personnel follow the regulations, 

and serves as the primary contact with 

the FAA. 

(b) Article means an aircraft, airframe, 

aircraft engine, propeller, appliance, or 

component part. 

(c) Avionics are articles generally 

associated with the processing of digital 

electrical signals. Examples include: 

radios, navigation equipment, radar, 

data processors, and cathode ray tubes. 

(d) Directly in charge means having 

the responsibility for the work of a 

certificated repair station that performs 

maintenance, preventive maintenance, 

alterations, or other functions affecting 

aircraft airworthiness. A person directly 

in charge does not need to physically 

observe and direct each worker 

constantly but must be readily available 

for consultation on matters requiring 

instruction or decision from higher 

authority. 

(e) Line maintenance means 

maintenance performed for an air carrier 

certificated under part 121 or part 135 

of this chapter, or a foreign air carrier 

or foreign person operating a U.S.- 

registered aircraft in common carriage 

under part 129 of this chapter, which is 

generally performed at the ramp, 

parking area, or gate, and typically will 

not exceed 24 continuous hours per 

aircraft. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30078 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

§ 145.1005 Certificate and operations 

specifications requirements. 

(a) No person may operate as a 

certificated repair station without, or in 

violation of, a repair station certificate, 

rating, or operations specifications 

issued under this part. 

(b) The certificate and operations 

specifications issued to a certificated 

repair station must be available on the 

premises for inspection by the public 

and the FAA. 

§ 145.1012 Repair station records: 

Falsification, reproduction, or alteration. 

(a) No person may make or cause to 

be made: 

(1) Any fraudulent or intentionally 

false entry in any record or report 

(including any application for a repair 

station certificate or rating) that is 

required to be made, kept, or used to 

show compliance with any requirement 

under this part; 

(2) Any reproduction, for fraudulent 

purpose, of any record or report 

(including any application for a repair 

station certificate or rating) under this 

part; or 

(3) Any alteration, for fraudulent 

purpose, of any record or report 

(including any application for a repair 

station certificate or rating) under this 

part. 

(b) The commission by any person of 

an act prohibited under paragraph (a) of 

this section is a basis for suspending or 

revoking the repair station certificate 

and any certificate, approval, or 

authorization issued by the FAA held by 

that person. 

21. Amend part 145 by adding new 

subpart G to read as follows: 

Subpart G—Certification 

145.1051 Application for certificate. 

145.1053 Issue of certificate. 

145.1055 Duration and renewal of 

certificate. 

145.1056 Amendment to or transfer of 

certificate. 

145.1057 Operations specifications. 

145.1058 Amending operations 

specifications. 

145.1059 Ratings. 

145.1061 Limitations to ratings. 

Subpart G—Certification 

§ 145.1051 Application for certificate. 

(a) An application for a repair station 

certificate and rating must be made in 

a format acceptable to the FAA and 

must include the following: 

(1) For initial applicants, a letter of 

compliance detailing how the applicant 

will comply with all sections of this 

part. 

(2) A repair station manual acceptable 

to the FAA as required by § 145.1207; 

(3) A quality control manual 

acceptable to the FAA as required by 

§ 145.1207 (the repair station and 

quality control manuals may be 

contained in the same document if they 

are clearly identified); 

(4) A list that includes each product 

or article for which the application is 

made, as defined in the rating system 

identified in § 145.1059. 

(5) An organizational chart of the 

repair station with the names and titles 

of managing and supervisory personnel; 

(6) The physical address and a 

description of all the repair station 

housing and facilities, including any 

additional fixed locations requested for 

approval in accordance with 

§ 145.1103(d). 

(7) A list of the maintenance 

functions, for approval by the FAA, to 

be performed for the repair station 

under contract by another person under 

the provisions of § 145.1217; and 

(8) A description of the training 

program for approval by the FAA in 

accordance with § 145.1163. 

(b) The technical data, housing, 

facilities, equipment, tools, test 

apparatus, materials, and personnel 

required for the certificate and rating, or 

for an additional rating, must be in 

place for inspection at the time of 

certification or rating approval by the 

FAA. 

(c) In addition to meeting the other 

applicable requirements for a repair 

station certificate and rating, an 

applicant for a repair station certificate 

and rating located outside the United 

States must meet the following 

requirements: 

(1) The applicant must show that the 

repair station certificate and/or rating is 

necessary for maintaining or altering the 

following: 

(i) U.S.-registered aircraft or articles 

for use on U.S.-registered aircraft, or 

(ii) Foreign-registered aircraft 

operated under the provisions of part 

121 or part 135 of this chapter, or 

articles for use on those aircraft. 

(2) The applicant must show that the 

fee prescribed by the FAA has been 

paid. 

(d) An application for an additional 

rating, amended repair station 

certificate, or renewal of a repair station 

certificate must be made in a format 

acceptable to the FAA. The application 

should include only that information 

necessary to substantiate the change or 

renewal of the certificate. 

(e) An application for a repair station 

certificate may be denied if the FAA 

finds that: 

(1) The applicant holds a repair 

station certificate in the process of being 

revoked, or previously held a repair 

station certificate that was revoked; 

(2) The applicant intends to fill or fills 

a management position with an 

individual who exercised control over 

or who held the same or a similar 

position with a certificate holder whose 

repair station certificate was revoked, or 

is in the process of being revoked, and 

that individual materially contributed to 

the circumstances causing the 

revocation or causing the revocation 

process; 

(3) An individual who will hold a 

management position previously held a 

management position with a certificate 

holder whose repair station certificate 

was revoked, or is in the process of 

being revoked, and the individual 

materially contributed to the 

circumstances causing the revocation or 

causing the revocation process; or 

(4) An individual who will have 

control over or substantial ownership 

interest in the applicant had the same or 

similar control or interest in a certificate 

holder whose repair station certificate 

was revoked, or is in the process of 

being revoked, and that individual 

materially contributed to the 

circumstances causing the revocation or 

causing the revocation process. 

§ 145.1053 Issue of certificate. 

(a) A person who meets the 

requirements of this part is eligible to be 

issued a repair station certificate with 

appropriate ratings prescribing such 

operations specifications and 

limitations as are necessary in the 

interest of safety. 

(b) If the person is located in a 

country with which the United States 

has a bilateral aviation safety agreement, 

the FAA may find that the person meets 

the requirements of this part based on 

a certification from the civil aviation 

authority of that country or an authority 

acceptable to the FAA. This certification 

must be made in accordance with 

implementation procedures signed by 

the FAA or the FAA’s designee. 

(c) Before an air agency certificate can 

be issued for a repair station that is 

located within the United States, the 

applicant shall certify in writing that all 

hazmat employees (as defined in 49 CFR 

171.8) for the repair station, its 

contractors, or subcontractors are 

trained as required in 49 CFR part 172, 

subpart H. 

(d) Before an air agency certificate can 

be issued for a repair station located 

outside the United States, the applicant 

shall certify in writing that all 

employees for the repair station, its 

contractors, or subcontractors 

performing a job function concerning 

the transport of dangerous goods 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30079 

(hazardous material) are trained as 

outlined in the most current edition of 

the International Civil Aviation 

Organization Technical Instructions for 

the Safe Transport of Dangerous Goods 

by Air. 

§ 145.1055 Duration and renewal of 

certificate. 

(a) A certificate or rating issued to a 

repair station located in the United 

States is effective from the date of issue 

until the repair station surrenders the 

certificate and the FAA accepts it for 

cancellation, or the FAA suspends or 

revokes it. 

(b) A certificate or rating issued to a 

repair station located outside the United 

States is effective from the date of issue 

until the last day of the 12th month after 

the date of issue unless the repair 

station surrenders the certificate and the 

FAA accepts it for cancellation, or the 

FAA suspends or revokes it. The FAA 

may renew the certificate or rating for 

24 months if the repair station has 

operated in compliance with the 

applicable requirements of part 145 

within the preceding certificate duration 

period. 

(c) A certificated repair station located 

outside the United States that applies 

for a renewal of its repair station 

certificate must— 

(1) Submit its request for renewal no 

later than 30 days before the repair 

station’s current certificate expires. If a 

request for renewal is not made within 

this period, the repair station must 

follow the application procedures in 

§ 145.1051; 

(2) Send its request for renewal to the 

FAA office that has jurisdiction over the 

certificated repair station; and 

(3) Show that the fee prescribed by 

the FAA has been paid. 

(d) The holder of an expired, 

surrendered, suspended, or revoked 

certificate must return it to the FAA. 

§ 145.1056 Amendment to or transfer of 

certificate. 

(a) An application to amend a repair 

station certificate must be made to the 

certificate-holding district office in a 

form and manner acceptable to the FAA. 

The request must meet the certification 

requirements of § 145.1051(d) and the 

statement required by § 145.1053(c) or 

(d) must be included, if not previously 

submitted. 

(b) The certificate holder must file the 

application made under paragraph (a) of 

this section with the certificate holding 

district office at least 15 days before the 

date proposed by the applicant for the 

amendment to become effective, unless 

the FAA accepts filing within a shorter 

period. 

(c) A certificate amendment is 

necessary if the certificate holder 

changes the location of the repair station 

or requests to add or amend a rating. 

(d) If the holder of a repair station 

certificate sells or transfers its assets, the 

new owner must apply for an amended 

certificate in accordance with 

§ 145.1051. 

§ 145.1057 Operations specifications. 

(a) Except for operations 

specifications paragraphs specifying 

ratings and limitations to those ratings, 

operations specifications are not part of 

a certificate. 

(b) Operations specifications issued 

under this part are effective as long as 

the repair station certificate is valid. 

(c) The operations specifications 

issued to a repair station must be 

available at the repair station for 

inspection by the public and the FAA at 

the address required by paragraph (d)(1) 

of this section. 

(d) Each certificate holder’s 

operations specifications must 

contain— 

(1) The physical address of the 

certificate holder’s fixed location for 

operation of the repair station. The 

address shall also serve as the address 

for mailed paper correspondence 

between the FAA and the certificate 

holder; 

(2) The ratings held and any 

limitations to those ratings; 

(3) Any special authorizations and 

limitations for the conduct of repair 

station operations; 

(4) Any exemption granted by the 

FAA to the repair station; and 

(5) Any other information the FAA 

determines is necessary. 

(e) If the optional capability list 

provided for in § 145.1215 is not used, 

each certificate holder’s operations 

specifications must, within the rating 

categories authorized under § 145.1059, 

identify each airframe, powerplant, or 

propeller by manufacturer, model, and 

series as applicable. For a Component 

rating, the operations specifications 

must identify each component or 

appliance included in the rating by 

manufacturer, manufacturer-designated 

nomenclature, and basic part number. 

For a Specialized Service rating, the 

operations specifications must identify 

each specific and unique maintenance 

function and the FAA acceptable 

specification associated with each 

function. 

§ 145.1058 Amending operations 

specifications. 

(a) The FAA may amend any 

operations specifications issued under 

this part if— 

(1) The operations specification was 

issued erroneously; 

(2) The FAA revises the operations 

specifications template; 

(3) The FAA determines that safety in 

air commerce and the public interest 

require the amendment; or 

(4) The certificate holder applies for 

the amendment and the FAA 

determines that safety in air commerce 

and the public interest allows the 

amendment. 

(b) Except for an amendment 

involving a rating or a limitation to a 

rating, which would be considered a 

certificate action, and except as 

provided in paragraph (e) of this section 

for other amendments in which the 

certificate-holding district office finds 

that an emergency exists requiring 

immediate action, when the FAA 

initiates an amendment to a certificate 

holder’s operations specifications, the 

following procedure applies: 

(1) The certificate-holding district 

office notifies the certificate holder in 

writing of the proposed amendment. 

(2) The certificate-holding district 

office sets a reasonable period (but not 

less than 7 days) within which the 

certificate holder may submit written 

information, views, and arguments on 

the amendment. 

(3) After considering the material 

presented, the certificate-holding 

district office notifies the certificate 

holder of— 

(i) The adoption of the proposed 

amendment; 

(ii) The partial adoption of the 

proposed amendment; or 

(iii) The withdrawal of the proposed 

amendment. 

(4) If the certificate-holding district 

office issues an amendment to the 

operations specifications, it becomes 

effective not less than 30 days after the 

certificate holder receives notice of it 

unless— 

(i) The certificate-holding district 

office finds under paragraph (e) of this 

section that an emergency exists 

requiring immediate action with respect 

to safety in air commerce; or 

(ii) The certificate holder petitions for 

reconsideration of the amendment 

under paragraph (d) of this section. 

(c) If the certificate holder applies for 

an amendment to its operations 

specifications, the following procedure 

applies: 

(1) The certificate holder must file an 

application to amend its operations 

specifications at least 15 days before the 

date proposed by the applicant for the 

amendment to become effective; 

(2) The application must be submitted 

to the certificate-holding district office 

in a form and manner prescribed by the 

FAA. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30080 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

(3) After considering the material 

presented, the certificate-holding 

district office notifies the certificate 

holder of— 

(i) The adoption of the applied-for 

amendment; 

(ii) The partial adoption of the 

applied-for amendment; or 

(iii) The denial of the applied-for 

amendment. The certificate holder may 

petition for reconsideration of a denial 

under paragraph (d) of this section. 

(4) If the certificate-holding district 

office approves the amendment 

following coordination with the 

certificate holder regarding its 

implementation, the amendment is 

effective on the date the FAA approves 

it. 

(d) When a certificate holder seeks 

reconsideration of a decision from the 

certificate-holding district office 

concerning the amendment of 

operations specifications, the following 

procedure applies: 

(1) The certificate holder must 

petition for reconsideration of that 

decision within 30 days of the date that 

the certificate holder receives a notice of 

denial of the amendment to its 

operations specifications, or of the date 

it receives notice of an FAA-initiated 

amendment to its operations 

specifications, whichever circumstance 

applies. 

(2) The certificate holder must 

address its petition to the applicable 

Flight Standards Regional Division 

Manager. 

(3) A petition for reconsideration, if 

filed within the 30-day period, suspends 

the effectiveness of any amendment 

issued by the certificate-holding district 

office unless the certificate-holding 

district office has found, under 

paragraph (e) of this section, that an 

emergency exists requiring immediate 

action with respect to safety in air 

transportation or air commerce, in 

which case the amendment remains in 

effect during the appeal. 

(e) If the certificate-holding district 

office finds that an emergency exists 

requiring immediate action with respect 

to safety in air commerce that makes the 

procedures set out in paragraph (d) of 

this section impracticable or contrary to 

the public interest: 

(1) The certificate-holding district 

office amends the operations 

specifications and makes the 

amendment effective on the day the 

certificate holder receives notice of it. 

(2) In the notice to the certificate 

holder, the certificate-holding district 

office articulates the reasons for its 

finding that an emergency exists 

requiring immediate action with respect 

to safety in air commerce that makes it 

impracticable or contrary to the public 

interest to stay the effectiveness of the 

amendment. 

§ 145.1059 Ratings. 

(a) Airframe rating. The following 

categories are authorized under the 

airframe rating: 

(1) Category 1: Aircraft certificated 

under parts 23 and 27. 

(2) Category 2: Aircraft certificated 

under parts 25 and 29. 

(3) Category 3: All other aircraft. 

(i) A certificated repair station with an 

Airframe rating may perform 

maintenance, preventive maintenance, 

and alterations on airframes under the 

provisions listed on its operations 

specifications; 

(ii) A certificated repair station with 

an Airframe rating shall not perform 

maintenance, preventive maintenance, 

or alterations on those articles for which 

a Powerplant or Propeller rating is 

required, unless the repair station 

possesses the appropriate rating; and 

(iii) A certificated repair station with 

an Airframe rating is not required to 

obtain a separate Component rating to 

maintain articles associated with its 

rating and capabilities. 

(b) Powerplant rating. The following 

categories are authorized under the 

Powerplant rating: 

(1) Category 1: Reciprocating engines. 

(2) Category 2: Turbine engines. 

(3) Category 3: Auxiliary Power Units 

(APU). 

(4) Category 4: All other powerplants. 

(i) A certificated repair station with a 

Powerplant rating may perform 

maintenance, preventive maintenance, 

and alterations on powerplants and 

auxiliary power units under the 

provisions listed on its operations 

specifications; 

(ii) A certificated repair station with 

a Powerplant rating shall not perform 

maintenance, preventive maintenance, 

or alterations on those articles for which 

an Airframe or Propeller rating is 

required, unless the repair station 

possesses the appropriate rating; and 

(iii) A certificated repair station with 

a Powerplant rating is not required to 

obtain a separate Component rating to 

maintain articles associated with its 

rating and capabilities. 

(c) Propeller rating. The following 

categories are authorized under the 

Propeller rating: 

(1) Category 1: Fixed-pitch and 

ground-adjustable pitch propellers. 

(2) Category 2: Variable-pitch 

propellers. 

(3) Category 3: All other propellers. 

(i) A certificated repair station with a 

Propeller rating may perform 

maintenance, preventive maintenance, 

and alterations on propellers under the 

provisions listed on its operations 

specifications; 

(ii) A certificated repair station with 

a Propeller rating shall not perform 

maintenance, preventive maintenance, 

or alterations on those articles for which 

an Airframe or Powerplant rating is 

required, unless the repair station 

possesses the appropriate rating; 

and 

(iii) A certificated repair station with 

a Propeller rating is not required to 

obtain a separate Component rating to 

maintain articles associated with its 

rating and capabilities. 

(d) Component rating. 

(1) A certificated repair station with a 

Component rating may perform 

maintenance, preventive maintenance, 

and alterations on appliances and 

components that are not installed on an 

airframe, powerplant, or propeller under 

the provisions listed on its operations 

specifications. 

(2) A certificated repair station with a 

Component rating must have an 

Airframe, Powerplant, or Propeller 

rating with limitations in accordance 

with § 145.1061 to install articles on 

those products. 

(e) Specialized Service rating. 

(1) The FAA may issue a Specialized 

Service rating to a certificated repair 

station that performs a specific and 

unique maintenance function. 

(2) The maintenance function must be 

performed in accordance with an FAAacceptable specification. 

(3) The repair station’s operations 

specifications must contain the 

specification used to perform the 

maintenance function. The specification 

may be: 

(i) A current industry or military 

specification acceptable to the FAA or, 

(ii) A specification developed by the 

applicant and approved by the FAA. 

(4) A certificated repair station may, 

under its Specialized Service rating, 

perform only the maintenance functions 

that are listed on the repair station’s 

operations specifications. 

(5) A certificated repair station with a 

Specialized Service rating shall not 

contract out any maintenance function 

associated with that rating. 

§ 145.1061 Limitations to ratings. 

(a) The FAA may issue limitations to 

the ratings of a certificated repair station 

for a particular type of airframe, 

powerplant, propeller, component, or 

specialized service that is listed on the 

repair station’s operations 

specifications. 

(b) The repair station’s operations 

specifications will identify the rating in 

§ 145.1059 to which the limitations 

apply. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30081 

(c) Limitations to any rating in 

§ 145.1059 may be issued as deemed 

appropriate by the FAA, including, but 

not limited to, line maintenance. 

22. Amend part 145 by adding new 

subpart H to read as follows: 

Subpart H— Technical Data, Housing, 

Facilities, Equipment, and Materials 

145.1101 General. 

145.1103 Housing and facilities 

requirements. 

145.1105 Change of location, housing, or 

facilities. 

145.1107 Satellite repair stations. 

145.1109 Technical data, equipment, tools, 

test apparatus, and materials 

requirements. 

Subpart H—Technical Data, Housing, 

Facilities, Equipment, and Materials 

§ 145.1101 General. 

A certificated repair station must 

provide the technical data, housing, 

facilities, equipment, tools, test 

apparatus, and materials that meet the 

applicable requirements for the issuance 

of the certificate and any rating the 

repair station holds. 

§ 145.1103 Housing and facilities 

requirements. 

(a) Each certificated repair station 

must provide and maintain— 

(1) Suitable permanent housing for 

the facilities, equipment, materials, and 

personnel consistent with its ratings. 

(2) Facilities for properly performing 

the maintenance, preventive 

maintenance, and alterations of articles 

for which it is rated. Facilities must 

include the following: 

(i) Sufficient work space and areas for 

the proper segregation and protection of 

articles during all maintenance, 

preventive maintenance, and 

alterations; 

(ii) Segregated work areas enabling 

environmentally hazardous or sensitive 

operations such as painting, cleaning, 

welding, avionics work, electronic 

work, and machining to be done 

properly and in a manner that does not 

adversely affect other maintenance or 

alterations of articles or activities; 

(iii) Suitable racks, hoists, trays, 

stands, and other segregation means for 

the storage and protection of all articles 

undergoing maintenance, preventive 

maintenance, or alterations; 

(iv) Space sufficient to segregate and 

protect articles and materials stocked for 

installation from those articles 

undergoing maintenance, preventive 

maintenance, or alterations; and 

(v) Ventilation, lighting, and control 

of temperature, humidity, and other 

climatic conditions sufficient to ensure 

personnel perform maintenance, 

preventive maintenance, and alterations 

to the standards required by this part. 

(b) A certificated repair station with 

an airframe rating must provide and 

maintain suitable permanent housing 

with the ability to enclose the largest 

type and model of aircraft for which it 

is rated. Notwithstanding this 

requirement for suitable permanent 

housing, the FAA may determine that a 

repair station with limitations to its 

airframe rating does not need to have 

housing to enclose an entire aircraft if 

the FAA determines that adequate 

environmental protection is provided by 

the repair station consistent with the 

limitations issued in accordance with 

§ 145.1061. 

(c) A certificated repair station may 

perform maintenance, preventive 

maintenance, and alterations on articles 

outside of its housing if it provides 

suitable facilities that are acceptable to 

the FAA and meet the requirements of 

§ 145.1103(a) so the work can be 

performed in accordance with the 

requirements of part 43 of this chapter. 

(d) A certificated repair station may 

continually perform maintenance, 

preventive maintenance, and alterations 

on any article for which it is rated at 

additional fixed locations if the 

following requirements are met: 

(1) The repair station applies for and 

receives approval of additional fixed 

locations. 

(2) For a repair station located within 

the United States, the additional fixed 

location is within the geographical 

boundaries of the Certificate Holding 

District Office. 

(3) For a repair station located outside 

of the United States, the additional fixed 

location is within close proximity of the 

certificated repair station, as determined 

by the FAA. 

(4) The location is permanently 

affixed and is under the managerial 

control and authority of the repair 

station. 

(5) The maintenance functions 

performed at the additional fixed 

locations are in support of and within 

the scope of the ratings listed on the 

repair station’s operations 

specifications. 

§ 145.1105 Change of location, housing, or 

facilities. 

(a) A certificated repair station shall 

not change the location of its housing 

without written approval from the FAA. 

(b) A certificated repair station shall 

not make any changes to its housing or 

facilities required by § 145.1103 that 

could have a significant effect on its 

ability to perform the maintenance, 

preventive maintenance, or alterations 

under its repair station certificate and 

operations specifications without 

written approval from the FAA. 

(c) The FAA may prescribe the 

conditions, including any limitations, 

under which a certificated repair station 

must operate while it is changing its 

location, housing, or facilities. 

§ 145.1107 Satellite repair stations. 

(a) A certificated repair station under 

the managerial control of another 

certificated repair station may operate as 

a satellite repair station with its own 

certificate issued by the FAA. Each 

satellite repair station must: 

(1) Meet the requirements for each 

rating it holds 

(2) Submit to its certificate holding 

district office the same manuals as the 

repair station that exercises managerial 

control. Each manual must identify any 

specific processes or procedures either 

unique to the satellite repair station or 

applicable only to the repair station 

with managerial control. 

(3) Submit to its certificate holding 

district office the same training program 

for approval as the repair station that 

exercises managerial control. The 

program must identify any specific 

processes or procedures either unique to 

the satellite repair station or applicable 

only to the repair station with 

managerial control. 

(4) Be able to demonstrate compliance 

with its manual. 

(5) Meet the housing and facility 

requirements of § 145.1103. 

(6) Have its own housing and facilities 

in a location with a physical address 

other than the repair station with 

managerial control. 

(b) Unless the FAA indicates 

otherwise, personnel and equipment 

from a certificated repair station with 

managerial control and from each of its 

satellite repair stations may be shared. 

However, inspection personnel must be 

designated for each satellite repair 

station and available at the satellite 

repair station any time a determination 

of airworthiness or approval for return 

to service is made. At other times, 

inspection personnel may be away from 

the premises but must be available by 

telephone, radio, or other electronic 

means. 

(c) A satellite repair station may not 

be located in a country other than the 

domicile country of the certificated 

repair station with managerial control. 

§ 145.1109 Technical data, equipment, 

tools, test apparatus, and materials 

requirements. 

(a) Except as otherwise prescribed by 

the FAA, a certificated repair station 

must have and maintain the equipment, 

tools, test apparatus, materials, and, in 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30082 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

a format acceptable to the FAA, the 

technical data necessary to perform the 

maintenance, preventive maintenance, 

or alterations under its repair station 

certificate and operations specifications 

in accordance with part 43 of this 

chapter. 

(b) Notwithstanding the requirement 

in paragraph (a) of this section for a 

repair station to have the necessary 

equipment, tools, and test apparatus, 

that requirement may be met for 

specialized and rarely used equipment, 

tools, and test apparatus if the repair 

station can demonstrate to the FAA it 

has made arrangements with another 

person to make those items available to 

the repair station at any time their use 

is required. 

(c) A certificated repair station must 

ensure that all test and inspection 

equipment and tools used to make 

airworthiness determinations on articles 

are calibrated to a standard acceptable 

to the FAA. 

23. Amend part 145 by adding new 

subpart I to read as follows: 

Subpart I—Personnel 

145.1151 Personnel requirements. 

145.1153 Supervisory personnel 

requirements. 

145.1155 Inspection personnel 

requirements. 

145.1157 Personnel authorized to approve 

an article for return to service. 

145.1159 Recommendation of a person for 

certification as a repairman. 

145.1161 Records of management, 

supervisory, and inspection personnel. 

145.1163 Training requirements. 

145.1165 Hazardous materials training. 

Subpart Personnel 

§ 145.1151 Personnel requirements. 

Each certificated repair station must— 

(a) Designate a repair station 

employee as the accountable manager; 

(b) Provide qualified personnel to 

plan, supervise, perform, and approve 

for return to service the maintenance, 

preventive maintenance, or alterations 

performed under the repair station 

certificate and operations specifications; 

(c) Ensure it has a sufficient number 

of employees with the training or 

knowledge and experience in the 

performance of maintenance, preventive 

maintenance, or alterations authorized 

by the repair station certificate and 

operations specifications to ensure all 

work, including work contracted to a 

noncertificated person in accordance 

with § 145.1217(b), is performed in 

accordance with part 43 of this chapter; 

and 

(d) Determine the abilities of its 

employees performing maintenance 

functions based on training, knowledge, 

experience, or practical tests. 

§ 145.1153 Supervisory personnel 

requirements. 

(a) A certificated repair station must 

ensure it has a sufficient number of 

supervisors to direct the work 

performed under the repair station 

certificate and operations specifications. 

The supervisors must be present to 

oversee the work performed. 

(b) Each supervisor must— 

(1) If employed by a repair station 

located inside the United States, be 

appropriately certificated under part 65 

of this chapter for the work being 

supervised. 

(2) If employed by a repair station 

located outside the United States- 

(i) Meet the requirements of paragraph 

(b)(1) of this section; or 

(ii) Meet the eligibility requirements 

of § 65.101(a)(1), (2), (3) and (5) of this 

chapter. 

(c) A certificated repair station must 

ensure its supervisors understand, 

speak, read, and write English. 

§ 145.1155 Inspection personnel 

requirements. 

(a) A certificated repair station must 

ensure that persons performing 

inspections under the repair station 

certificate and operations specifications 

are— 

(1) Thoroughly familiar with the 

applicable regulations in this chapter 

and with the inspection methods, 

techniques, practices, aids, equipment, 

and tools used to determine the 

airworthiness of the article on which 

maintenance, preventive maintenance, 

or alterations are being performed; and 

(2) Proficient in using the various 

types of inspection equipment and 

visual inspection aids appropriate for 

the article being inspected. 

(b) A certificated repair station must 

ensure its inspectors understand, speak, 

read, and write English. 

(c) A certificated repair station must 

ensure that an inspector is available at 

the article while performing 

inspections. 

§ 145.1157 Personnel authorized to 

approve an article for return to service. 

(a) Each person authorized to approve 

an article for return to service must be 

thoroughly familiar with the applicable 

regulations in this chapter and 

proficient in the use of the various 

applicable inspection methods, 

techniques, and practices. 

(b) A certificated repair station 

located inside the United States must 

ensure that each person authorized to 

approve an article for return to service 

is appropriately certificated under part 

65 of this chapter for the work 

approved. 

(c) A certificated repair station located 

outside the United States must ensure 

that each person authorized to approve 

an article for return to service: 

(1) Is certificated as required by 

paragraph (b) of this section, or; 

(2) Meets the eligibility requirements 

of § 65.101(a) (1), (2), (3) and (5) of this 

chapter. 

(d) A certificated repair station must 

ensure that each person authorized to 

approve an article for return to service 

understands, speaks, reads, and writes 

English. 

(e) A certificated repair station must 

ensure that a person authorized to 

approve an article for return to service 

is available to inspect the article any 

time such approval is made. 

§ 145.1159 Recommendation of a person 

for certification as a repairman. 

A certificated repair station that 

chooses to use repairmen to meet the 

applicable personnel requirements of 

this part must certify in a format 

acceptable to the FAA that each person 

recommended for certification as a 

repairman— 

(a) Is employed by the repair station, 

and 

(b) Meets the eligibility requirements 

of § 65.101 of this chapter. 

§ 145.1161 Records of management, 

supervisory, and inspection personnel. 

(a) A certificated repair station must 

maintain and make available in a format 

acceptable to the FAA the following: 

(1) A roster of management and 

supervisory personnel that includes the 

names of the repair station officials who 

are responsible for its management and 

the names of its supervisors who 

oversee maintenance functions. 

(2) A roster with the names of all 

inspection personnel. 

(3) A roster of personnel authorized to 

approve for return to service a 

maintained or altered article. 

(4) A summary of the employment 

history of each individual whose name 

is on the personnel rosters required by 

paragraphs (a)(1) through (a)(3) of this 

section. The summary must contain 

enough information on each individual 

listed on the roster to show compliance 

with the experience requirements of this 

part and must include the following: 

(i) Present title, 

(ii) Total years of experience and the 

type of maintenance work performed, 

(iii) Past relevant employment with 

names of employers and periods of 

employment, positions, and types of 

maintenance performed, 

(iv) Scope of present employment, 

and 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30083 

(v) The type of mechanic or repairman 

certificate held and the ratings on that 

certificate, if applicable. 

(b) Within 5 business days of the 

change, the rosters required by this 

section must reflect changes caused by 

termination, reassignment, change in 

duties or scope of assignment, or 

addition of personnel. 

§ 145.1163 Training requirements. 

(a) A certificated repair station must 

have an employee training program 

approved by the FAA that consists of 

initial and recurrent training. 

(b) The training program must ensure 

that each employee assigned to perform 

maintenance, preventive maintenance, 

alterations, or inspection functions is— 

(1) Capable of performing the assigned 

task; 

(2) Trained in human factors relevant 

to aviation maintenance; 

(3) Trained in the Federal Aviation 

Regulations as they relate to Part 145; 

and 

(4) Trained in the repair station’s 

manuals, quality control program, 

procedures, and forms. 

(c) A certificated repair station must 

document, in a format acceptable to the 

FAA, the individual employee training 

required under this section. These 

records must be retained for a minimum 

of 2 years. 

(d) A certificated repair station must 

submit training program revisions to its 

certificate holding district office in 

accordance with the procedures in the 

repair station manual as required by 

§ 145.1209(e)(2). 

§ 145.1165 Hazardous materials training. 

(a) Each repair station that meets the 

definition of a hazmat employer under 

49 CFR 171.8 must have a hazardous 

materials training program that meets 

the training requirements of 49 CFR part 

172, subpart H. 

(b) A repair station employee shall not 

perform or directly supervise a job 

function listed in § 121.1001 or 

§ 135.501 of this chapter for, or on 

behalf of the part 121 or 135 operator, 

including loading of items for transport 

on an aircraft operated by a part 121 or 

part 135 certificate holder, unless that 

person has received training in 

accordance with the part 121 or part 135 

operator’s FAA-approved hazardous 

materials training program. 

24. Amend part 145 by adding new 

subpart J to read as follows: 

Subpart J—Operating Rules 

145.1201 Privileges and limitations of 

certificate. 

145.1203 Work performed at another 

location. 

145.1205 Maintenance, preventive 

maintenance, and alterations performed 

for certificate holders under parts 121, 

125, and 135, and for foreign air carriers 

or foreign persons operating a U.S.- 

registered aircraft in common carriage 

under part 129. 

145.1206 Notification of hazardous 

materials authorizations. 

145.1207 Repair station and quality control 

manuals. 

145.1209 Repair station manual contents. 

145.1211 Quality control system. 

145.1213 Inspection of maintenance, 

preventive maintenance, or alterations. 

145.1215 Capability list 

145.1217 Contract maintenance. 

145.1219 Recordkeeping. 

145.1221 Service difficulty reports. 

145.1223 FAA inspections. 

Subpart J—Operating Rules 

§ 145.1201 Privileges and limitations of 

certificate. 

(a) A certificated repair station may— 

(1) Perform maintenance, preventive 

maintenance, or alterations in 

accordance with part 43 of this chapter 

on any article for which it is rated and 

within the limitations in its operations 

specifications. 

(2) In accordance with § 145.1217, 

arrange for another person to perform 

maintenance, preventive maintenance, 

or alterations of any article for which it 

is rated. 

(3) Approve for return to service any 

article for which it is rated after it has 

performed maintenance, preventive 

maintenance, or an alteration in 

accordance with part 43 of this chapter. 

(b) A certificated repair station shall 

not approve for return to service under 

part 43 of this chapter— 

(1) Any article for which it is not 

rated; 

(2) Any article for which it is rated if 

it requires special technical data, 

equipment, or facilities that are not 

available to it; 

(3) Any article unless the 

maintenance, preventive maintenance, 

or alteration was performed in 

accordance with the applicable 

approved technical data or data 

acceptable to the FAA, and using 

methods, techniques, and practices 

acceptable to the FAA. 

(4) Any article after a major repair or 

major alteration unless the major repair 

or major alteration was performed in 

accordance with applicable approved 

technical data; or 

(5) Any experimental aircraft after a 

major repair or major alteration 

performed under § 43.1(b) of this 

chapter unless the major repair or major 

alteration was performed in accordance 

with methods and applicable technical 

data acceptable to the FAA. 

§ 145.1203 Work performed at another 

location. 

A certificated repair station may 

temporarily transport material, 

equipment, and personnel needed to 

perform maintenance, preventive 

maintenance, or alterations on an article 

for which it is rated to a place other 

than the repair station’s fixed location if 

the following requirements are met: 

(a) The work is necessary due to a 

special circumstance, as determined by 

the FAA, or 

(b) It is authorized by the FAA to 

perform such work on a recurring basis, 

and the repair station’s manual includes 

the procedures for accomplishing 

maintenance, preventive maintenance, 

or alterations at a place other than the 

repair station’s fixed location. 

§ 145.1205 Maintenance, preventive 

maintenance, and alterations performed for 

certificate holders under parts 121, 125, and 

135, and for foreign air carriers or foreign 

persons operating U.S.-registered aircraft in 

common carriage under part 129. 

(a) A certificated repair station that 

performs maintenance, preventive 

maintenance, or alterations for an air 

carrier or air operator under parts 121 or 

135 of this chapter, or for a foreign air 

carrier or foreign person operating U.S.- 

registered aircraft in common carriage 

under part 129 of this chapter, shall 

perform that work in accordance with 

the instructions provided by that air 

carrier, air operator, or foreign air carrier 

or foreign person. 

(b) A certificated repair station that 

performs inspections on an aircraft that 

is subject to an inspection program 

under § 91.409(e) or parts 125 or 135 of 

this chapter shall do that work in 

accordance with the inspection program 

provided by the operator of that aircraft. 

§ 145.1206 Notification of hazardous 

materials authorizations. 

(a) Each repair station must 

acknowledge receipt of the part 121 or 

part 135 operator notification required 

under §§ 121.1005(e) and 135.505(e) of 

this chapter prior to performing work 

for, or on behalf of, that certificate 

holder. 

(b) Prior to performing work for or on 

behalf of a part 121 or part 135 operator, 

each repair station must notify its 

employees, contractors, or 

subcontractors that handle or replace 

aircraft components or other items 

regulated by 49 CFR parts 171 through 

180 of each certificate holder’s 

operations specifications authorization 

permitting, or prohibition against, 

carrying hazardous materials. This 

notification must be provided 

subsequent to the notification by the 

part 121 or part 135 operator of such 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30084 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

operations specifications authorization/ 

designation. 

§ 145.1207 Repair station and quality 

control manuals. 

A certificated repair station must: 

(a) Prepare and follow repair station 

and quality control manuals acceptable 

to the FAA; 

(b) Maintain current repair station and 

quality control manuals; 

(c) Ensure the manuals required by 

this section are accessible for use by 

repair station personnel; 

(d) Provide to its certificate holding 

district office the current manuals in a 

format acceptable to the FAA; and 

(e) Notify its certificate holding 

district office of each revision to its 

manuals in accordance with the 

procedures required by 

§§ 145.1209(e)(7) and 145.1211(c)(3). 

§ 145.1209 Repair station manual 

contents. 

A certificated repair station’s manual 

must include at least the following: 

(a) An organizational chart 

identifying— 

(1) Each management position with 

authority to act on behalf of the repair 

station; 

(2) The area of responsibility assigned 

to each management position; and 

(3) The duties, responsibilities, and 

authority of each management position. 

(b) A description of the certificated 

repair station’s operations, including the 

technical data, housing, facilities, 

equipment, and materials as required by 

this part; 

(c) A description of— 

(1) The required records and the 

recordkeeping system used to obtain, 

store, and retrieve the required records; 

and 

(2) The system used to identify and 

control sections of the repair station 

manual. 

(d) Procedures for revising the 

capabilities list if used, including— 

(1) Submitting the revisions to the 

certificate holding district office for 

approval; or 

(2) The self-evaluation permitted 

under § 145.1215(d)(2) for making 

changes to the capability list, 

including— 

(i) Determining that the repair station 

has all of the technical data, housing, 

facilities, equipment, material, 

processes, and trained personnel in 

place; 

(ii) Methods and frequency of such 

evaluations, including procedures for 

reporting the results to the appropriate 

repair station manager for review and 

action; 

(iii) Notifying the certificate holding 

district office of changes to the list, 

including how often the certificate 

holding district office will be notified of 

changes; and 

(iv) Documenting the self evaluation 

and periodic review, including making 

such documentation available to the 

FAA, and retaining it for a period of 2 

years. 

(e) Procedures for— 

(1) Maintaining and revising the 

rosters required by § 145.1161; 

(2) Revising the training program 

required by § 145.1163 and submitting 

revisions to the certificate holding 

district office for approval; 

(3) Governing work performed at 

another location in accordance with 

§ 145.1203; 

(4) Performing maintenance, 

preventive maintenance, or alterations 

under § 145.1205; 

(5) Maintaining and revising a list of 

the maintenance functions approved by 

the FAA that may be performed under 

contract by another person in 

accordance with § 145.1217(a)(1), 

including submitting revisions to the 

certificate holding district office for 

approval; 

(6) Maintaining and revising the 

contract maintenance information 

required by § 145.1217(a)(2) including 

how and when the certificate holding 

district office is notified of revisions; 

and 

(7) Revising the repair station’s 

manual and notifying its certificate 

holding district office of revisions to the 

manual, including how often the 

certificate holding district office will be 

notified of revisions. 

§ 145.1211 Quality control system. 

(a) A certificated repair station must 

establish and maintain a quality control 

system acceptable to the FAA that 

ensures the airworthiness of the articles 

on which the repair station or any of its 

contractors performs maintenance, 

preventive maintenance, or alterations. 

(b) Repair station personnel must 

follow the quality control system when 

performing maintenance, preventive 

maintenance, or alterations under the 

repair station certificate and operations 

specifications. 

(c) The quality control manual must 

include at least the following: 

(1) A description of the quality 

control system and procedures used 

for— 

(i) Inspecting incoming materials to 

ensure acceptable quality; 

(ii) Performing preliminary inspection 

of all articles that are maintained; 

(iii) Inspecting all articles that have 

been involved in an accident for hidden 

damage before maintenance, preventive 

maintenance, or alteration is performed; 

(iv) Establishing and maintaining 

proficiency of inspection personnel; (v) 

Establishing and maintaining current 

technical data for maintaining articles; 

(vi) Qualifying and surveilling 

noncertificated persons who perform 

maintenance, preventive maintenance, 

or alterations for the repair station in 

accordance with 145.1217; 

(vii) Performing final inspection and 

approval for return to service of 

maintained articles; (viii) Calibrating 

measuring and test equipment used in 

maintaining articles, including the 

intervals at which the equipment will be 

calibrated; 

(ix) Taking corrective action on 

deficiencies; 

(x) Identifying and managing 

suspected unapproved parts; and 

(xi) Ensuring that maintenance not 

completed as a result of shift change or 

similar interruption is properly 

completed. 

(2) A sample of the inspection and 

maintenance forms and instructions for 

completing such forms or a reference to 

a separate forms manual; and 

(3) Procedures for revising the quality 

control manual required under this 

section and notifying the certificate 

holding district office of the revisions, 

including how often the certificate 

holding district office will be notified of 

revisions. 

§ 145.1213 Inspection of maintenance, 

preventive maintenance, or alterations. 

(a) A certificated repair station must 

inspect each article upon which it has 

performed maintenance, preventive 

maintenance, or alterations as described 

in paragraphs (b) and (c) of this section 

before approving that article for return 

to service. 

(b) A certificated repair station must 

certify that the article is airworthy with 

respect to the maintenance, preventive 

maintenance, or alterations performed 

after— 

(1) The repair station performs work 

on the article; and 

(2) An inspector inspects the article 

on which the repair station has 

performed work and determines it to be 

airworthy with respect to the work 

performed. 

(c) For the purposes of paragraphs (a) 

and (b) of this section, an inspector 

must meet the requirements of 

§ 145.1155 

§ 145.1215 Capability list. 

(a) A certificated repair station may 

establish and maintain, in a format 

acceptable to the FAA, a capability list 

that includes all the articles for which 

it is rated to perform maintenance, 

preventive maintenance, or alterations. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 30085 

(b) An article may be listed on the 

capability list only if it is within the 

scope of the repair station’s ratings and 

operations specifications. 

(c) Within the rating categories 

identified in § 145.1059, the capability 

list must identify each airframe, 

powerplant, or propeller by 

manufacturer, model, and series as 

applicable. For a component rating, the 

list must identify each component for 

which the repair station is rated by 

manufacturer, manufacturer-designated 

nomenclature, and basic part number. 

(d) Changes may be made to the 

capabilities list: 

(1) By submitting a request to the FAA 

for approval; or 

(2) Upon application, as prescribed in 

§ 145.1058, the repair station may 

request authorization in its operations 

specifications to make additions to the 

capabilities list through self-evaluation. 

The self-evaluation must be 

documented and include a 

determination that the repair station has 

all of the technical data, housing, 

facilities, equipment, material, 

processes, and trained personnel in 

place to perform maintenance, 

preventive maintenance, or alterations 

on the article in accordance with this 

part. 

(e) Following changes to its 

capabilities list, the repair station must 

provide its certificate holding district 

office with a copy of the revised list in 

accordance with the procedures 

required in § 145.1209(d). 

(f) A periodic review of the capability 

list must be accomplished at least every 

2 years to determine if it is current. 

Following the periodic review, the 

capability list shall be revised to remove 

those articles for which the repair 

station no longer has the technical data, 

housing, facilities, equipment, material, 

processes, or trained personnel 

necessary to perform maintenance or 

alterations on the article. 

§ 145.1217 Contract maintenance. 

(a) A certificated repair station may 

contract a maintenance function 

pertaining to an article to another 

person provided— 

(1) The maintenance function to be 

contracted is approved by the FAA; and 

(2) The repair station maintains and 

makes available to its certificate holding 

district office, in a format acceptable to 

the FAA, the following information: 

(i) The name of each person with 

whom the repair station contracts 

maintenance functions; 

(ii) The type of certificate and ratings, 

if any, held by each person to whom the 

repair station contracts a maintenance 

function; and 

(iii) The maintenance function(s) 

contracted to each person. 

(b) If a maintenance function is 

contracted under paragraph (a) of this 

section to a person not certificated to 

perform the work, the repair station 

must: 

(1) Determine, in accordance with the 

procedures required under § 145.1211(c) 

(1) (vi), that the noncertificated person 

follows a quality control system 

equivalent to the system followed by the 

certificated repair station; 

(2) Remain directly in charge of the 

work performed by the noncertificated 

person; 

(3) Verify, by test and/or inspection, 

that the work has been performed 

satisfactorily and that the article is 

airworthy before approving it for return 

to service; and 

(4) Ensure the repair station employee 

requirements of § 145.1151(c) are met 

when accomplishing the requirements 

of paragraphs (b) (1) and (b) (3) of this 

section. 

(c) A certificated repair station may 

not exercise the privileges of its 

certificate by providing only approval 

for return to service of an article 

following contracting of maintenance, 

preventive maintenance, or alterations. 

§ 145.1219 Recordkeeping. 

(a) A certificated repair station must 

retain records in English that 

demonstrate compliance with the 

requirements of part 43 of this chapter. 

The records must be retained in a format 

acceptable to the FAA. 

(b) A certificated repair station must 

provide a copy of the approval for 

return to service in accordance with 

§ 43.5 of this chapter to the owner or 

operator of the article on which 

maintenance, preventive maintenance, 

or alteration was performed. 

(c) A certificated repair station must 

retain the records required by this 

section for at least 2 years from the date 

the article was approved for return to 

service. 

(d) A certificated repair station must 

make all required records available for 

inspection by the FAA and the National 

Transportation Safety Board. 

§ 145.1221 Service difficulty reports. 

(a) A certificated repair station must 

report to the FAA discovery of any 

serious failure, malfunction, or defect of 

an article in a format acceptable to the 

FAA. The report must be submitted 

within 96 hours of approving the article 

for return to service. 

(b) The report required under 

paragraph (a) of this section must 

include as much of the following 

information as is available: 

(1) Aircraft registration number; 

(2) Type, make, and model of the 

article; 

(3) Date of the discovery of the failure, 

malfunction, or defect; 

(4) Nature of the failure, malfunction, 

or defect; 

(5) Time since last overhaul, if 

applicable; 

(6) Apparent cause of the failure, 

malfunction, or defect; and 

(7) Other pertinent information that is 

necessary for more complete 

identification, determination of 

seriousness, or corrective action. 

(c) The holder of a repair station 

certificate that is also the holder of a 

part 121, 125, or 135 certificate; type 

certificate (including a supplemental 

type certificate); parts manufacturer 

approval; or technical standard order 

authorization, or that is the licensee of 

a type certificate holder, does not need 

to report a failure, malfunction, or 

defect under this section if the failure, 

malfunction, or defect has been reported 

under parts 21, 121, 125, or 135 of this 

chapter. 

(d) A certificated repair station may 

submit a service difficulty report for the 

following: 

(1) A part 121 certificate holder, 

provided the report meets the 

requirements of part 121 of this chapter, 

as appropriate. 

(2) A part 125 certificate holder, 

provided the report meets the 

requirements of part 125 of this chapter, 

as appropriate. 

(3) A part 135 certificate holder, 

provided the report meets the 

requirements of part 135 of the chapter, 

as appropriate. 

(e) A certificated repair station 

authorized to report a failure, 

malfunction, or defect under paragraph 

(d) of this section must not report the 

same failure, malfunction, or defect 

under paragraph (a) of this section. A 

copy of the report submitted under 

paragraph (d) of this section must be 

forwarded to the certificate holder. 

§ 145.1223 FAA inspections. 

(a) A certificated repair station must 

allow the FAA to inspect that repair 

station at any time to determine 

compliance with this chapter. 

(b) A certificated repair station may 

not contract for the performance of a 

maintenance function on an article with 

a noncertificated person unless it 

provides in its contract with the 

noncertificated person that the FAA 

may make an inspection and observe the 

performance of the noncertificated 

person’s work on the article. 

(c) A certificated repair station may 

not approve for return to service any 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2

30086 Federal Register / Vol. 77, No. 98 / Monday, May 21, 2012 / Proposed Rules 

article on which a maintenance function 

was performed by a noncertificated 

person if the noncertificated person 

does not permit the FAA to make the 

inspection described in paragraph (b) of 

this section. 

Subparts A through E [Removed and 

Reserved] 

25. On [24 months after publication of 

final rule], remove and reserve subparts 

A through E. 

Issued in Washington, DC, on May 3, 2012. 

Raymond Towles, 

Acting Director, Flight Standards Service. 

[FR Doc. 2012–11984 Filed 5–18–12; 8:45 am] 

BILLING CODE 4910–13–P 

mstockstill on DSK4VPTVN1PROD with PROPOSALS2