AIR-16-0006-E Exemption No. 16697

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

WASHINGTON, DC 20591

In the matter of the petition of

GENERAL ELECTRIC COMPANY Regulatory Docket No. FAA-2016-2573

for an exemption from §§ 21.6(a) and 21.9(c)(1) of Title 14, Code of Federal Regulations

GRANT OF EXEMPTION

By letter dated January 13, 2016, Ms. Amy Dow, General Electric Company (GE), 1000 Western Avenue, Lynn, MA 01910 petitioned the Federal Aviation Administration (FAA) on behalf of GE for an exemption from §§ 21.6(a) and 21.9(c)(1) of Title 14, Code of Federal Regulations (14 CFR). The proposed exemption, if granted, would allow GE to manufacture, represent for sale, and sell new engines as well as replacement and modification articles for installation on restricted category UH-60A helicopters previously declared surplus by the U.S. Army.

The petitioner requests relief from the following regulations:

Section 21.6(a) prescribes, in pertinent part, that no person may manufacture a new aircraft, aircraft engine, or propeller based on a type certificate unless the person is the holder of the type certificate or has a licensing agreement from the holder of the type certificate to manufacture the product, and meets the requirements of subpart F or G of this part.

Section 21.9(c)(1) prescribes, in pertinent part, that a person may not sell or represent an article as suitable for installation on an aircraft type-certificated under §§ 21.25(a)(2) or 21.27 unless that article was declared surplus by the U.S. Armed Forces, and was intended for use on that aircraft model by the U.S. Armed Forces.

Although the petitioner requests relief from § 21.9(c)(1), the FAA finds that GE also requires relief from §§ 21.9(a) and (b).2

Section 21.9(a) prescribes, in pertinent part, that if a person knows, or should know, that a replacement or modification article is reasonably likely to be installed on a type-certificated product, the person may not produce that article unless it is produced under a type certificate; produced under an FAA production approval; a standard part (such as a nut or bolt) manufactured in compliance with a government or established industry specification; a commercial part as defined in § 21.1 of this part; produced by an owner or operator for maintaining or altering that owner or operator's product; or fabricated by an appropriately rated certificate holder with a quality system, and consumed in the repair or alteration of a product or article in accordance with part 43 of this chapter.

Section 21.9(b) prescribes, in pertinent part, that except as provided in paragraphs (a)(1) through (a)(2) of § 21.9, a person who produces a replacement or modification article for sale may not represent that part as suitable for installation on a type-certificated product.

The petitioner supports its request with the following information:

GE is the original manufacturer of the subject engines, which have accumulated over 90 million operating hours worldwide. As the manufacturer, GE monitors in-service engines to identify opportunities for improvement, and to implement improvements. The current production T700-701D engine configuration incor porates all operational and safety updates. GE notes that granting this exemption would afford operators access to the most modern engine technology, replacing the legacy technology in cluded on the aircraft at the time of U.S. Army surplus sale and receipt of the restricted category certificate.

GE states that because the military engines are not independently type certificated, they are not eligible for manufacture under the FAA production certificate held by GE. As a result, GE is in the position of not being able to s upport the fleet of restricted category aircraft, although it originally manufactured the engines included in the restricted category aircraft type certificates.

GE notes that the U.S. Army’s UH-60A aircraft sale program, also known as the Black Hawk Exchange and Sales Transaction (BEST) program, has already sold more than 100 UH-60A aircraft to the domestic civil market, with plans to sell a total of nearly 700 aircraft over the next few years. The operators in need of these engines fly missions under state and Federal government contracts. Operations under thes e contracts include lifesaving firefighting activities, policing actions, and placement of power lines in remote locations. GE asserts that granting this exemption would serve both public safety and aviation safety interests.3

Although the petitioner requested that action on its petition not be delayed for publication in the Federal Register, the FAA found that the petition, if granted, would set a precedent. Therefore, to allow an opportunity for the public to comment on the petition, a summary of this petition was published in the Federal Register on February 26, 2016 (81 FR 9930).

Sixteen comments were received.

All sixteen comments received were supportive of the exemption. Seven commenters highlighted the advantages of the availability of upgraded engines, and four of those specifically mentioned the T700-GE-701D engine model. Three commenters also specifically identified their confidence in parts and support supplied by GE.

The FAA’s analysis is as follows:

The FAA has reviewed GE’s petition, the comments received, and after careful consideration, we find a grant of exemption would provide an e quivalent level of safety to the regulations for which the relief is required. The following is a summary of our analysis of GE’s petition.

The FAA agrees with GE in its assessment that in order to supply replacement articles and engines for the civil fleet of military surplu s UH-60A aircraft, type certificated under 14 CFR § 21.25(a)(2), relief from §§ 21.6 and 21.9 is needed. In this case, the military engines are part of the aircraft restricted category type certificate. Due to the fact that the military engines in this case are not independently type certificated, GE cannot manufacture replacement engines or parts for these aircraft under its production certificate. GE is unable to support the fleet of restricted category airc raft, even though it originally manufactured the aircraft’s engines. The FAA agrees with GE in its assessment that the number of aircraft that the U.S. Army has already surplused and the Army’s plans to surplus many more to the civilian market will only add to the need for a path to provide new and replacement parts and engines for these aircraft in the future.

The FAA agrees with GE in its assertion that the relief sought would be in the public interest. The operations undertaken by these aircraft serve a public interest. Restricted category helicopters are certificated for several purposes that include forest and wildlife conservation, aerial surveying, patrolling, and agricultural uses. For example, and as outlined in the petition, these aircraft are used for activities like firefighting. This service benefits the public by providing rapid response to fires while reducing the potential loss of life or injury to ground-based firefighters and by reducing or eliminating property damage.

The FAA agrees with GE that the relief sought will not compromise safety. The relief sought will provide operators with needed replacement engines and parts to support the safe operation of their aircraft. Additionally, operation of restricted category aircraft is limited to special purposes identified in the applicable type design. These aircraft are limited in their scope of operations and the aircraft must be operated in accordance their operating limitations. Overall, the FAA finds that granting this exemption would not introduce new risk into the operations of these restricted category aircraft.4

The FAA has determined that as the original manufacturer of these aircraft for the U.S. Armed Forces, GE can safely produce replacement engines and parts. The replacement engines and parts would be produced under the same quality system used to produce the same engines and engine parts for the military. GE has procedures and processes in place to ensure that the replacement engines and engine parts conform to their approved military design and are in a condition for safe operation.

Overall, the FAA finds that GE can manufacture new engines and articles to support restricted category UH-60A helicopters without adversely a ffecting safety provided that the conditions and limitations of this exemption are met.

The FAA’s Decision

In consideration of the foregoing, I find that a grant of exemption is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. §§ 106(f), 40113 and 44701, delegated to me by the Administrator, I grant General Electric Company (GE) an exemption from 14 CFR §§ 21.6(a) and 21.9 to the extent necessary to allow GE to manufacture and sell new engines and replacement and modification ar ticles for installation on restricted category UH-60A helicopters previously operated by the U.S. Army, subject to the conditions and

limitations listed below.

Conditions and Limitations

1. This exemption is only applicable to GE engine models: T700-GE-700, T700-GE701C, and T700-GE-701D, as sold to the U.S. Armed Forces for installation on restricted category UH-60A helicopters declared surplus by the U.S. Armed Forces. This exemption is only issued for the purpose of production of these engines and replacement and modification articles for these engines.

2. GE must own the necessary engine design and manufacturing data to exercise the privileges of this exemption.

3. All production under this exemption must take place under the equivalent quality system used to produce these engines and engine parts for the U.S. Armed Forces.

4. GE must have procedures and processes in place to ensure the new engines and replacement and modification articles conform to their approved military design and are in a condition for safe operation. This information must be accessible to and retrievable by any representative of the Administrator upon request.5

5. GE must report failures, malfunctions, and defects for the engines and engine parts produced under this exemption in accordance with § 21.3.

This exemption terminates on May 31, 2021, unless sooner superseded or rescinded.

Issued in Washington, D.C., on May 23, 2016.

/s/

David W. Hempe Deputy Director, Aircraft Certification Service