[Federal Register: December 30, 2003 (Volume 68, Number 249)]
[Rules and Regulations]               
[Page 75379-75383]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30de03-17]                         


[[Page 75379]]

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Part IV





Department of Transportation





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Federal Aviation Administration



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14 CFR Part 145



Repair Stations: Service Difficulty Reporting; Final Rule


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 145

[Docket No.: FAA-2003-16772; Amendment No. 22]
RIN 2120-AI07

 
Repair Stations: Service Difficulty Reporting

AGENCY: Federal Aviation Administration, DOT.

ACTION: Final rule; request for comments.

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SUMMARY: This final rule amends the regulations governing service 
difficulty reports (SDRs) submitted to the FAA by aeronautical repair 
stations. The FAA is clarifying which type of failures, malfunctions, 
and defects repair stations must report. Finally, FAA is replacing 
certain section references with part references. This action will 
eliminate the need to revise repair station regulations if the FAA 
revises SDR rules.

DATES: Effective January 31, 2004.
    Comments for inclusion in the Rules Docket must be received on or 
before January 29, 2004.

ADDRESSES: You may send comments [identified by Docket Number FAA-2003-
16772 using any of the following methods:
    [sbull] DOT Docket Web site: Go to http://dms.dot.gov and follow 

the instructions for sending your comments electronically.
    [sbull] Government-wide rulemaking Web site: Go to http://www.regulations.gov
 and follow the instructions for sending your 

comments electronically.
    [sbull] Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001.
    [sbull] Fax: 1-202-493-2251.
    [sbull] Hand Delivery: Room PL-401 on the plaza level of the Nassif 
Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.
    For more information on the rulemaking process, see the 
SUPPLEMENTARY INFORMATION section of this document.
    Privacy: We will post all comments we receive, without change, to 
http://dms.dot.gov, including any personal information you provide. For 

more information, see the Privacy Act discussion in the SUPPLEMENTARY 
INFORMATION section of this document.
    Docket: To read background documents or comments received, go to 
http://dms.dot.gov at any time or to Room PL-401 on the plaza level of 

the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Diana L. Frohn, General Aviation and 
Repair Station Branch, AFS--340, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
7027; facsimile (202) 267-5118, e-mail diana.frohn@faa.gov.

SUPPLEMENTARY INFORMATION: 

Comments Invited

    FAA is adopting this final rule without prior notice and prior 
public comment. FAA finds such action necessary for good cause. Notice 
and comment procedures would be impracticable, unnecessary, and 
contrary to the public interest. This amendment presents no change in 
current industry practice. Further, without this amendment, repair 
stations will not be able to comply with a recent revision to part 145 
that becomes effective January 31, 2004, because it would contain 
section numbers that would not be in effect. The Regulatory Policies 
and Procedures of the Department of Transportation (DOT) (44 FR 1134; 
February 26, 1979), however, provide that, to the maximum extent 
possible, operating administrations for DOT should provide an 
opportunity for public comment on regulations issued without prior 
notice. Accordingly, we invite interested persons to participate in 
this rulemaking by submitting such written data, views, or arguments, 
as they may desire. We also invite comments relating to environmental, 
energy, federalism, or international trade impacts that might result 
from this amendment. Please include the regulatory docket or amendment 
number and send two copies to the address above. We will file all 
comments received, as well as a report summarizing each substantive 
public contact with FAA personnel on this rulemaking, in the public 
docket. The docket is available for public inspection before and after 
the comment closing date.
    Privacy Act: Using the search function of our docket Web site, 
anyone can find and read the comments received into any of our dockets, 
including the name of the individual sending the comment (or signing 
the comment on behalf of an association, business, labor union, etc.). 
You may review DOT's complete Privacy Act Statement in the Federal 
Register published on April 11, 2000 (65 FR 19477-78), or you may visit 
http://dms.dot.gov.

    FAA will consider all comments received on or before the closing 
date for comments. We will consider late comments to the extent 
practicable. We may amend this final rule in light of the comments 
received.
    Commenters who want FAA to acknowledge receipt of their comments 
submitted in response to this final rule must include a preaddressed, 
stamped postcard with those comments on which the following statement 
is made: ``Comments to Docket No. FAA-2003-XXXXX.'' The postcard will 
be date-stamped by FAA and mailed to the commenter.

Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by:
    (1) Searching the Department of Transportation's electronic Docket 
Management System (DMS) Web page (http://dms.dot.gov/search);    (2) Visiting the Office of Rulemaking's Web page at http://

http://www.faa.gov/avr/arm/index.cfm; or

    (3) Accessing the Government Printing Office's Web page at http://www.access.gpo.gov/su_docs/aces/aces140.html
.

    You can also get a copy by submitting 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, notice number, or amendment number 
of this rulemaking.

Background

    On September 8, 2000, FAA issued ``Service Difficulty Reports; 
Final rule, request for comments on the information collection'' (65 FR 
56192; September 15, 2000). That final rule amended the requirements in 
14 CFR parts 121, 125, 135, and 145 for reporting failures, 
malfunctions, and defects of aircraft, aircraft engines, systems, and 
components. In that rulemaking action, FAA amended Sec. Sec.  145.63 
and 145.79 to--
    (1) Increase the time period for repair stations to report 
failures, malfunctions, or defects from 72 hours to 96 hours; and
    (2) Allow a repair station to submit service difficulty reports 
(SDRs) on behalf of part 121, 125, and 135 certificate holders.

Section 145.63, paragraphs (c) and (d) and Sec.  145.79, paragraphs 
(e)(1) through (e)(3), specified the sections of parts 121, 125, and 
135 that allow certificated repair stations to submit SDRs for part 
121, 125, and 135 certificate holders.

[[Page 75381]]

    On July 30, 2001, FAA issued ``Repair Stations; Final rule with 
request for comments and direct final rule with request for comments,'' 
(66 FR 41088; August 6, 2001). In that rulemaking action, FAA further 
amended Sec. Sec.  145.63 and 145.79 by--
    (1) Combining the provisions of Sec. Sec.  145.63 and 145.79 and 
re-designating the requirements as Sec.  145.221, Service Difficulty 
Reporting;
    (2) Standardizing the requirements for reporting failures, 
malfunctions, or defects to apply to all certificated repair stations, 
regardless of location;
    (3) Replacing the phrases ``serious defect'' and ``other 
unairworthy condition'' with the phrase ``failure, malfunction, or 
defect''; and
    (4) Including language that would allow repair stations to submit 
SDRs to FAA in a format acceptable to the Administrator.

That amendment to part 145 becomes effective January 31, 2004.

Statement of the Problem

    After issuing the SDR final rule, FAA received extensive comments 
opposing the rule. To give the agency time to consider industry's 
concerns about the SDR final rule, the FAA previously extended the 
effective date of the SDR rule. The FAA is again extending the 
effective date of the SDR rule this time to January 30, 2006. This 
extension affects the July 2001 repair station reporting final rule, 
because that amendment to part 145 will become effective January 31, 
2004, and it references sections in parts 121, 125, and 135 that will 
now not become effective until January 30, 2006.
    Also, several repair stations have expressed concern about FAA's 
removal in July 2001 of the word ``serious'' to describe the type of 
defect that must be reported. Repair stations contend the language in 
Sec.  145.221(a) requires them to report all failures, malfunctions, or 
defects, regardless of severity.

FAA Action

    To avoid the need to amend Sec.  145.221 to track specific sections 
of parts 121, 125, and 135, FAA is amending Sec.  145.221 by removing 
references to specific sections in parts 121, 125, and 135. FAA is 
replacing the specific section references with the applicable part 
numbers. This amendment will require repair stations to follow whatever 
requirements are set out in parts 121, 125, and 135, depending on the 
certificate holder.
    Also, FAA agrees with the repair station industry concerning the 
word ``serious''. It was not the agency's intent to require repair 
stations to report ``any'' failure, malfunction, or defect. When FAA 
combined Sec. Sec.  145.63 and 145.79 to create Sec.  145.221, FAA 
standardized language in that section to match language in parts 121, 
125, and 135, which do not include the word ``serious.'' In doing so, 
FAA removed the word ``serious'' to describe the type of failures, 
malfunctions, and defects repair stations must report. Again, it was 
not FAA's intent to require repair stations to report all failures, 
malfunctions, and defects. Repair stations are required to report only 
serious failures, malfunctions, and defects. Therefore, FAA is 
reinserting the word ``serious'' before the word ``failure'' in Sec.  
145.211(a).

Effect of This Action

    This action becomes effective on January 31, 2004, along with the 
new requirements for part 145 issued on July 30, 2001. Repair stations 
submitting SDRs for part 121, 125, or 135 certificate holders will be 
required to report in accordance with the requirements of the 
appropriate part. For example, a repair station reporting a failure, 
malfunction, or defect for a part 121 certificate holder would submit 
the report in accordance with whatever provisions of part 121 are in 
effect on the date the report is sent. By removing references to 
specific sections in parts 121, 125, and 135, FAA will be able to amend 
the requirements for SDRs in the future without making further 
amendments to part 145.
    FAA notes the repair station industry should interpret the word 
``serious'' the same way it is interpreted under the current rule. 
Repair stations should continue to report failures, malfunctions, or 
defects as they are currently reported. This amendment will not change 
current practice in determining which failures, malfunctions, or 
defects repair stations should report.

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA to comply with small entity requests for information 
or advice about compliance with statutes and regulations within its 
jurisdiction. Therefore, any small entity that has a question regarding 
this document may contact their local FAA official, or the person 
listed under FOR FURTHER INFORMATION CONTACT. You can find out more 
about SBREFA on the Internet at our site, http://www.gov/avr/arm/sbrefa.htm.
 For more information on SBREFA, e-mail us at 9-AWA-

SBREFA@faa.gov.

Paperwork Reduction Act

    Information collection requirements on service difficulty reporting 
have previously been approved by the Office of Management and Budget 
(OMB) under the provisions of the Paperwork Reduction Act of 1995 (44 
U.S.C. section 3507(d)), and have been assigned OMB Control Number 
2120-0682.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to comply with 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. FAA has 
reviewed the corresponding ICAO Standards and Recommended Practices and 
has identified some differences with these regulations.

Economic Summary, Regulatory Flexibility Act, Trade Impact Assessment, 
and Unfunded Mandates Assessment

Economic Summary

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 directs each Federal agency to 
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 requires agencies to analyze the 
economic impact of regulatory changes on small entities. Third, the 
Trade Agreements Act (19 U.S.C. 2531-2533) prohibits agencies from 
setting standards that create unnecessary obstacles to the foreign 
commerce of the United States. In developing U.S. standards, this Trade 
Agreements Act also requires agencies to consider international 
standards and, where appropriate, use them as the basis for U.S. 
standards. Fourth, the Unfunded Mandates Reform Act of 1995 (Pub. L. 
104-4) requires agencies to prepare a written assessment of the costs, 
benefits, and other effects of proposed or final rules that include a 
Federal mandate likely to result in the expenditure by State, local, or 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more annually (adjusted for inflation.)
    In conducting these analyses, FAA has determined that this rule: 
(1) Will generate benefits and will not impose any costs, is not a 
``significant regulatory action'' as defined in section 3(f) of 
Executive Order 12866, and is not ``significant'' as defined in DOT's 
Regulatory Policies and Procedures; (2)

[[Page 75382]]

will not have a significant economic impact on a substantial number of 
small entities; (3) will not constitute a barrier to international 
trade; and (4) does not impose an unfunded mandate on state, local, or 
tribal governments, or on the private sector.
    Department of Transportation (DOT ) Order 2100.5 prescribes 
policies and procedures for simplification, analysis, and review of 
regulations. If it is determined that the expected impact is so minimal 
that the rule does not warrant a full evaluation, a statement to that 
effect and the basis for the determination is included in the preamble 
to the rule. Given the reasons presented below, FAA has determined the 
expected impact of this rule is minimal and the final rule does not 
warrant a full evaluation.
    This amendment will remove specific references found in 14 CFR 
parts 121, 125, and 135 concerning the requirements for SDRs. This 
change will eliminate the need to revise part 145 when revising the SDR 
requirements in the future. Also, the amendment will require repair 
stations to submit the reports for ``serious'' failures, malfunctions, 
and defects, as intended originally. The costs associated with these 
provisions were addressed in both the Service Difficulty Reports final 
rule (65 FR 56192; September 15, 2000) and the Repair Stations final 
rule (66 FR 41088; August 6, 2001).
    Regarding benefits, this rule will provide repair stations some 
cost savings by limiting reports to serious failures, malfunctions, or 
defects, rather than ``any'' defect. Also, FAA finds the removal of 
conflicting effective dates and potential cost savings justify adoption 
of this rule.

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a 
principle of regulatory issuance that agencies shall endeavor, 
consistent with the objective of the rule and of applicable statutes, 
to fit regulatory and informational requirements to the scale of the 
business, organizations, and governmental jurisdictions subject to 
regulation.'' To achieve that principle, the RFA requires agencies to 
solicit and consider flexible regulatory proposals and to explain the 
rationale for their actions. The RFA covers a wide-range of small 
entities, including small businesses, not-for-profit organizations and 
small governmental jurisdictions.
    Agencies must perform a review to determine whether a proposed or 
final 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 proposed or final rule is 
not expected to have a significant economic impact on a substantial 
number of small entities, section 605(b) of the RFA provides that the 
head of the agency may so certify and a regulatory flexibility analysis 
is not required. The certification must include a statement providing 
the factual basis for this determination, and the reasoning should be 
clear.
    This rule will have a minimal impact on repair stations since it 
reduces reporting and imposes no costs. FAA, therefore, certifies the 
rule will not have a significant economic impact on a substantial 
number of small operators.

Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from 
establishing any standards or engaging in related activities that 
create unnecessary obstacles to the foreign commerce of the United 
States. Legitimate domestic objectives, such as safety, are not 
considered unnecessary obstacles. The statute also requires 
consideration of international standards and, where appropriate, that 
they be the basis for U.S. standards. FAA has assessed the potential 
effect of this final rule and has determined that it will impose the 
same requirements on domestic and international entities and thus has a 
neutral trade impact.

Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (the Act) is intended, 
among other things, to curb the practice of imposing unfunded Federal 
mandates on State, local, and tribal governments. Title II of the Act 
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 (adjusted 
annually for inflation) 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.'' This final rule 
does not contain such a mandate. The requirements of Title II do not 
apply.

Executive Order 13132, Federalism

    FAA has analyzed this final rule under the principles and criteria 
of Executive Order 13132, Federalism. We determined this action will 
not have a substantial direct effect on the States, or the relationship 
between the national Government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
Therefore, we determined this final rule does not have federalism 
implications.

Environmental Analysis

    FAA Order 1050.1D defines FAA actions that may be categorically 
excluded from preparation of a National Environmental Policy Act (NEPA) 
environmental impact statement. In accordance with FAA Order 1050.1D, 
appendix 4, paragraph 4(j), this rulemaking action qualifies for a 
categorical exclusion.

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 because it is 
not a ``significant regulatory action'' under Executive Order 12866, 
and it is not likely to have a significant adverse effect on the 
supply, distribution, or use of energy.

List of Subjects in 14 CFR Part 145

    Air carriers, Air transportation, Aircraft, Aviation safety, 
Recordkeeping and reporting, Safety.

Adoption of the Amendment

0
Accordingly, the Federal Aviation Administration amends part 145 of 
Title 14, Code of Federal Regulations as follows:

PART 145--REPAIR STATIONS

0
1. The authority citation for part 145 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44702, 44707, 44717.

0
2. Section 145.221 is amended by revising paragraphs (a), (c), and (d)


Sec.  145.221  Reports of failures, malfunctions, or defects.

    (a) A certificated repair station must report to the FAA within 96 
hours after it discovers any serious failure, malfunction, or defect of 
an article. The report must be in a format acceptable to the FAA.
* * * * *
    (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

[[Page 75383]]

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 (operational or structural) 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.
* * * * *

    Issued in Washington, DC, on December 19, 2003.
Marion C. Blakey,
Administrator.
[FR Doc. 03-31884 Filed 12-29-03; 8:45 am]

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