TRANSPORT WORKERS UNION
LOCAL 562


[Federal Register: August 6, 2001 (Volume 66, Number 151)]
[Rules and Regulations]               
[Page 41087-41124]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06au01-31]                         


[[Page 41087]]

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Part II





Department of Transportation





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Federal Aviation Administration



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14 CFR Parts 91 et al.



Final Rule With Request for Comments and Direct Final Rule With Request 
for Comments; Final Rule


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 91, 121, 135, and 145

[Docket No. FAA-1999-5836; Amendment Nos. 91-269, 121-286, 135-82, 
145-27, and SFAR 36-7]

RIN 2120-AC38

 
Repair Stations

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule with request for comments and direct final rule with 
request for comments.

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SUMMARY: This rule updates and revises the regulations for repair 
stations. This action is necessary because many of the current repair 
station regulations do not reflect changes in repair station business 
practices and aircraft maintenance practices. The rule reorganizes the 
requirements applicable to repair stations to reduce duplication of 
regulatory language and eliminate obsolete information. In addition, 
the rule establishes new definitions applicable to repair stations and 
updates requirements relating to repair station certification; housing, 
facilities, equipment, materials, and data; personnel; and operations. 
The rule also eliminates, where practicable, distinctions between 
repair stations based on geographical location. This final rule does 
not adopt the proposed revised repair station ratings and quality 
assurance system; these proposals will be addressed in a subsequent 
rulemaking action. Finally this direct final rule removes the appendix 
to the repair station regulations that sets forth the job functions and 
equipment requirements for repair stations.

DATES: This rule is effective April 6, 2003, with the following 
exceptions: Sec. 145.163 which is effective April 6, 2005, and the 
removal of Appendix A to part 145 which is effective April 6, 2003, 
unless adverse comments are received by October 5, 2001. Comments on 
the information collection requirements must be submitted on or before 
October 5, 2001.

ADDRESSES: Address your comments to the Docket Management System, U.S. 
Department of Transportation, Room Plaza 401, 400 Seventh Street, SW., 
Washington, DC 20590-0001. You must identify the docket number FAA-
1999-5836 at the beginning of your comments, and you should submit two 
copies of your comments. If you wish to receive confirmation that the 
FAA received your comments, include a self-addressed, stamped postcard.
    You may also submit comments through the Internet to http://
dms.dot.gov . You may review the public docket containing comments to 
these proposed regulations in person in the Dockets Office between 9:00 
a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. The 
Dockets Office is on the plaza level of the NASSIF Building at the 
Department of Transportation at the above address. Also, you may review 
public dockets on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Diana L. Frohn, Aircraft Maintenance 
Division, Air Carrier Maintenance Branch, AFS-330, Federal Aviation 
Administration, 800 Independence Avenue SW., Washington, DC 20591; 
telephone (202) 493-4941; facsimile (202) 267-5115.

SUPPLEMENTARY INFORMATION: The Direct Final Rule Procedure
    The FAA anticipates that the removal of appendix A to part 145 will 
not result in adverse or negative comments; therefore the FAA is 
removing appendix A as a direct final rule. Comments received in 
response to Notice of Proposed Rulemaking No. 99-09 generally opposed 
appendix A. Many commenters noted that the appendix is outdated. 
Commenters questioned the FAA's ability to keep any such listing 
current. Unless a written adverse or negative comment, or a written 
notice of intent to submit an adverse or negative comment is received 
within the comment period, the removal of appendix A will become 
effective on the date specified above. After the close of the comment 
period, the FAA will publish a document in the Federal Register 
indicating that no adverse or negative comments were received and 
confirming the date on which the direct final rule will become 
effective. If the FAA does receive, within the comment period, an 
adverse or negative comment, or written notice of intent to submit such 
a comment, a document withdrawing the removal of appendix A will be 
published in the Federal Register, and a notice of proposed rulemaking 
may be published with a new comment period.

Comments Invited

    An opportunity for comment on the information collection 
requirements of this rule was not provided during the notice of 
proposed rulemaking stage. Therefore, a 60-day comment period is 
attached to this final rule.
    Also, we have removed appendix A from part 145. Because we did not 
propose to remove appendix A, we seek comments on its removal. 
Generally, the final rule accomplishes the purpose of appendix A 
without restricting a repair station's ability to adapt future 
technologies. The reasons for removing appendix A are explained in 
greater detail in the section-by-section discussion of requirements 
withdrawn from the proposal.
    Interested persons are invited to submit written data, views, or 
arguments regarding the information collection requirements and the 
removal of appendix A as they may desire. Substantive comments should 
be accompanied by cost estimates. Comments must identify the regulatory 
docket or notice number and be submitted in duplicate to the DOT Rules 
Docket address specified above.
    All comments received, as well as a report summarizing each 
substantive public contact with FAA personnel concerning this 
rulemaking, will be filed in the docket. The docket is available for 
public inspection before and after the comment closing date.
    All comments received on or before the closing date will be 
considered by the FAA before the effective date of the direct final 
rule. Comments filed late will be considered as far as possible without 
incurring expense or delay.
    Commenters wishing the FAA to acknowledge receipt of their comments 
submitted in response to this document must include a pre-addressed, 
stamped postcard with those comments on which the following statement 
is made: ``Comments to Docket No. FAA-1999-5836.'' The postcard will be 
date stamped and mailed to the commenter.

Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by taking the 
following steps:
    (1) Go to the search function of the Department of Transportation's 
electronic Docket Management System (DMS) web page (http://dms.dot.gov/
search).
    (2) On the search page type in the last four digits of the Docket 
number shown at the beginning of this document. Click on ``search.''
    (3) On the next page, which contains the Docket summary information 
for the Docket you selected, click on the document number for the item 
you wish to view.
    You can also get an electronic copy using the Internet through 
FAA's web page at http://www.faa.gov/avr/arm/nprm/nprm.htm or the 
Federal Register's web page at http://www.access.gpo.gov/su_docs/aces/
aces140.html.

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    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 amendment number or docket number of this 
rulemaking.

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires the 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 its 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.

Background

    Very few substantive changes have been made to the regulations 
applicable to repair stations since they were recodified in Title 14, 
Code of Federal Regulations (14 CFR) (27 FR 6662, July 13, 1962). 
Portions of 14 CFR part 145 are no longer appropriate or have become 
increasingly difficult to administer. Other portions of the rule no 
longer make a significant contribution to aviation safety or do not 
warrant the associated administrative costs. In addition, the FAA has 
granted exemptions and created other special administrative procedures 
to handle situations not provided for adequately in the regulations. To 
ensure the regulations are appropriate for today's repair station 
industry, the FAA determined that part 145 should be revised.
    In 1975, the FAA and industry participants in the FAA's First 
Biennial Operations Review recommended that specific and substantial 
requirements of part 145 be revised. Although minor amendments to part 
145 were subsequently adopted, no major revision was made. However, a 
significant amendment to part 145 was adopted on November 22, 1988 
(Amendment No. 145-21, 53 FR 47362), that expanded the scope of work 
foreign repair stations (that is, those U.S.-certificated repair 
stations located outside the United States) are authorized to perform. 
The amendment also permitted certain repair stations to contract 
maintenance functions to noncertificated organizations/facilities under 
specific conditions.
    As part of a regulatory review of 14 CFR part 43; 14 CFR part 65, 
subpart E; and part 145, the FAA held four public meetings in 1989 (54 
FR 30866; July 24, 1989). The meetings were held in Washington, D.C.; 
Fort Lauderdale, Florida; Dallas, Texas; and San Francisco, California. 
These meetings provided a forum for the public to offer comments 
concerning the possible revision of the rules governing repair 
stations. More than 500 representatives of repair stations, airlines, 
unions, manufacturers, foreign governments, and industry organizations, 
and individuals attended the meetings. The goal of the meetings was to 
gather enough factual information from the public to determine whether 
the repair station regulations should be revised and, if so, to 
determine what revisions should be made.
    During the review of the repair station rules, the FAA examined 
various documents and related rulemaking actions. These documents 
included FAA Order 8300.10, Airworthiness Inspector's Handbook; 
advisory circulars (ACs) that relate to repair stations, such as AC No. 
145-3, Guide for Developing and Evaluating Repair Station Inspection 
Procedures Manuals, and AC No. 145-5, Repair Station Internal 
Evaluation Programs; and previous petitions for exemption from part 
145. The FAA also reviewed Joint Aviation Requirement (JAR) 145: 
Approved Maintenance Organizations, established by the Joint Aviation 
Authorities (JAA), an organization of European civil aviation 
authorities. As a result of the above action, the FAA published Notice 
of Proposed Rulemaking No. 99-09, ``Part 145 Review: Repair Stations'' 
(64 FR 33142, June 21, 1999).
    The FAA extended the close of the comment period on Notice No. 99-
09 from October 19, 1999, to December 3, 1999, in response to 
commenters' requests. The FAA received approximately 530 comments in 
response to Notice No. 99-09. Associations representing repair stations 
and other aviation-related entities, unions, aviation authorities, air 
carriers, manufacturers, members of Congress, the National 
Transportation Safety Board (NTSB), and individual repair stations 
provided comments on the proposal.

The Final Rule

    The FAA appreciates the comments received in response to its 
proposal. Many revisions to the proposal are based in part on language 
provided by commenters. The revisions clarify the intent of the rule, 
provide more regulatory flexibility in carrying out the requirements, 
and in some cases lessen regulatory burdens without compromising 
safety.
    This final rule reorganizes and clarifies certain subparts and 
sections of part 145. We have arranged the subparts by subject rather 
than geographic location of the repair station. We also have eliminated 
limited ratings for manufacturer's maintenance facilities and removed 
the corresponding subpart.
    In addition, we have revised the housing and equipment 
requirements. Part 145 no longer requires a repair station with an 
airframe rating to provide permanent housing that encloses at least one 
of the heaviest aircraft within the weight class for which it is rated. 
Instead, a repair station is only required to provide permanent housing 
that encloses the largest type and model of aircraft listed on its 
operations specifications. The final rule also includes provisions for 
exchanging equipment among satellite repair stations and for leasing 
equipment.
    The final rule requires repair stations to develop a repair station 
manual that prescribes its operational procedures. The rule also 
requires repair stations to develop a quality control manual that is 
similar to the currently required inspection procedures manual.
    Although we proposed a new rating and class system, we have 
retained the current rating and class system in the final rule. Also, 
the final rule does not include a quality assurance program. We intend 
to seek advice and recommendations from the affected aviation community 
before promulgating rulemaking on these issues.
    Finally, the final rule provides for satellite repair stations, 
expands the scope of contract maintenance, and requires repair stations 
to develop a training program.
    Because the Administrator of the FAA has delegated various 
responsibilities to offices within the Agency, we have determined it is 
appropriate to replace references to the ``Administrator'' with the 
``FAA.'' Further, in an effort to recognize the use of electronic means 
to store and send information we have removed references to paper 
copies.
    This final rule will become effective 20 months after it is 
published in the Federal Register. This time period is needed to 
develop ACs and internal FAA guidance, and to train FAA personnel. 
Additionally, repair stations will need adequate time to comply with 
the new requirements. The training

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requirements (Sec. 145.163), become effective 24 months after the 
effective date of the final rule. Certificated repair stations will 
need this additional time to develop and submit a training program to 
the FAA for approval. Specific details regarding the deadlines for 
submitting a training program for FAA approval are discussed later.

Section-by-Section Discussion of Requirements Withdrawn From the 
Notice of Proposed Rulemaking

    Based on comments received, we are withdrawing some of the sections 
proposed in the NPRM. Specifically, we are withdrawing advertising 
(proposed Sec. 145.9), deviation authority (proposed Sec. 145.11), 
ratings and classes (proposed Sec. 145.59), transition to new system of 
ratings (proposed Sec. 145.61), quality assurance (proposed 
Sec. 145.201(a)(1)), and job functions (proposed appendix A to part 
145). Below is a section by section discussion of these withdrawn 
requirements.

Proposed Sec. 145.9  Advertising

    Proposed paragraph (a) would have prohibited a repair station from 
advertising as a certificated repair station until the issuance of a 
certificate. Proposed paragraph (b) would have prohibited a repair 
station from making any statement about itself, either orally or in 
writing, that was false or designed to mislead any person. Finally, 
proposed paragraph (c) would have required any advertisement to include 
the repair station's certificate number.
    One association requested that the FAA discuss what constitutes 
advertising for purposes of the proposal. Several commenters 
recommended deleting proposed paragraphs (a) and (b) because Federal 
and State laws adequately protect the public from false and misleading 
advertising. The commenters generally recommended revising proposed 
paragraph (b) because any statement by any individual could be 
misinterpreted and construed to be a violation under the proposed 
language. One commenter suggested revising proposed paragraph (b) to 
prohibit a repair station from misleading individuals with respect to 
ratings, limitations, privileges, and other matters regulated by part 
145. Several commenters, including one association, supported requiring 
a repair station to include its certificate number in advertisements. 
Another commenter stated that including a certificate number in 
advertisements does not increase safety. That commenter noted that 
other certificate holders, such as air carriers and pilot training 
schools, are not required to include certificate numbers in 
advertisements.
    In light of the comments regarding Federal and State laws on false 
and misleading advertising, the FAA has withdrawn proposed 
Sec. 145.9(a) and (b). In addition, the FAA finds that requiring a 
repair station to include its certificate number in any advertising is 
unnecessary and involves a repair station's business decisions in an 
area not related to ensuring safety or the airworthiness of articles. 
The FAA notes that the public has access to a repair station's 
certificate number under Sec. 145.5(b), which requires the certificate 
and operations specifications to be available on the repair station's 
premises for inspection by the public. Therefore, the FAA has not 
included proposed Sec. 145.9 in the final rule.

Proposed Sec. 145.11  Deviation Authority

    The proposal would have established procedures for repair stations 
to apply for deviation authority from the regulations similar to the 
procedures used by manufacturers and operators.
    Many commenters supported deviation authority for repair stations 
as a means of providing regulatory flexibility. However, several 
commenters recommended adding provisions to make the application 
procedure for deviation authority public. In addition, commenters 
indicated that the deviation authority should be processed at the local 
level rather than at FAA Headquarters. Other commenters expressed 
concern over the discretion given to FAA inspectors to terminate or 
amend a letter of deviation authority, which the commenters contended 
could disrupt business. Some of the commenters who opposed the addition 
of deviation authority stated that it would replace the public process 
with a hidden process, benefit large certificated repair stations, and 
provide little or no benefit to small general aviation repair stations.
    When proposed, the FAA envisioned that deviation would be sought 
from only a few sections, in particular the proposed quality assurance 
system and training program requirements. However, as previously noted, 
the FAA intends to propose requirements for quality assurance in a 
subsequent rulemaking action. In addition, the FAA will be issuing 
guidance on the training program requirements and will approve these 
programs on a case-by-case basis. In light of the commenters' concerns 
about granting deviation authority, relief from part 145 regulations 
will continue to be addressed through the 14 CFR part 11 exemption 
process. Exemptions are public actions processed at FAA Headquarters.

Proposed Sec. 145.59  Ratings and Classes

    This proposed section would have significantly revised the current 
system of ratings and classes. The FAA specifically requested comments 
on the proposed regulations and asked whether the proposed system of 
ratings and classes should be addressed in a separate rulemaking.
    Comments on the proposal were mixed. Some commenters found the new 
system confusing and complicated, and others stated that the proposal 
is more restrictive than the current system of ratings and classes. One 
association stated that the proposal merely adds to an outmoded class 
system and offered in its place an alternative ratings system. Other 
commenters criticized specific parts of the proposal, using as an 
example, the weights used to distinguish between aircraft class 
ratings. Some commenters believe that the number of powerplant class 
ratings would be confusing, and recommended instead associating 
powerplant and airframe class ratings.
    Although many commenters believe a separate rulemaking action to 
revise the system of ratings is not necessary, the FAA finds that the 
comments and alternatives received have merit and should be considered 
further before a new system of rating and classes is adopted. 
Therefore, this final rule retains the current rating and class system. 
The comments will be considered during development of the subsequent 
notice of proposed rulemaking.

Proposed Sec. 145.61  Transition to New System of Ratings

    This section proposed procedures for transitioning to the proposed 
system of ratings and has not been included in this final rule.

Proposed Sec. 145.201  Quality Assurance and Quality Control Systems

    Proposed Sec. 145.201(a)(1) would have required a repair station to 
establish a quality assurance system.
    Commenters generally opposed the proposed quality assurance system 
requirements. One association stated that although its members support 
the concept of quality assurance, the FAA has not justified the burden 
of the requirement in terms of safety. Some commenters opposed the 
proposal because the FAA has not adequately described the specific 
requirements. Some of those commenters requested that advisory material 
be issued along with the proposal to allow the public

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adequate opportunity to comment. Four unions expressed support for 
requiring repair stations to have a quality assurance system. Some 
commenters asserted that implementation of a quality assurance system 
would require them to incur significant costs.
    The FAA agrees that the quality assurance program must have 
adequately defined requirements and that guidance material is necessary 
for implementation of an effective system. We also recognizes that 
establishment of a quality assurance system may be particularly 
burdensome for small repair stations. The FAA will review the comments 
submitted on this issue and develop specific requirements for a quality 
assurance program in a subsequent notice of proposed rulemaking.

Proposed Appendix A to Part 145 Job Functions

    Proposed appendix A set forth job functions and equipment 
requirements for repair stations.
    Commenters are generally opposed to appendix A as proposed. Many 
commenters noted that the proposed appendix is already outdated. Still, 
others questioned the FAA's ability to keep any such listing current 
while other commenters offered specific revisions to the equipment 
requirements.
    The FAA agrees with commenters who expressed concern about the 
difficulties in keeping appendix A current; therefore, the agency has 
decided to withdraw appendix A. For the same reason, the FAA has not 
included current appendix A in the final rule. Because the FAA did not 
propose to eliminate appendix A in Notice No 99-09, we seek comments on 
its removal. The final rule will accomplish the purpose of appendix A 
without restricting a repair station's ability to adapt future 
technologies.
    The final rule revises the equipment requirements and the 
contracting out provisions to provide more flexibility for repair 
stations to accomplish maintenance, preventative maintenance, or 
alterations on articles for which they are rated. Revisions to the 
equipment section of the final rule will permit certificated repair 
stations to enter into contracts or other leasing agreements to obtain 
equipment needed in the maintenance of articles for which it is rated. 
Repair stations will no longer have to maintain a seldom used, 
expensive piece of equipment just to retain their current ratings. 
Repair stations and their contract maintenance providers will still be 
required to have the equipment when performing a maintenance function. 
Likewise, the contracting out provisions have been revised to better 
reflect current industry practices in specialized areas. The 
combination of these actions effectively incorporates appendix A in its 
entirety.

Section-by-Section Discussion of the Final Rule

    Below is a section-by-section discussion of the final rule. We have 
provided a brief description of the proposed rule, a summary of the 
comments received, and the FAA's disposition.

Part 145--Repair Stations

Subpart A--General

Section 145.1  Applicability

    Summary of Proposal/Issue: The FAA proposed to revise current 
Sec. 145.1 with respect to obtaining repair station certificates and 
the general rules under which certificated repair stations must 
operate. The FAA proposed to add the term ``preventive maintenance'' 
and proposed to replace the current reference to ``airframes, 
powerplants, propellers, and appliances'' with ``any aircraft, 
airframe, aircraft engine, propeller, appliance, or component part 
thereof.'' The FAA proposed deleting paragraph (b), which delineated 
the term ``domestic'' and ``foreign'' in describing the location of a 
repair station.. As discussed in Notice No.
99-09, the FAA removed, where appropriate, the distinctions between 
repair stations located inside the United States and those located 
outside the United States. In addition, the FAA proposed eliminating 
paragraph (c), which addressed the limited rating for manufacturers.
    Comments: Most commenters supported the FAA's proposed revisions to 
Sec. 145.1. However, several commenters recommended eliminating the 
phrase ``component part thereof'' because of the burden it would place 
on the applicant for a repair station certificate. One commenter 
recommended including the term ``rebuilt'' whenever the term 
``maintenance'' is used.
    With regard to the proposed elimination of the limited rating for 
manufacturers, three unions supported the proposal. Manufacturers 
opposed the elimination of the rating and questioned why a production 
approval holder may perform major repairs and major alterations, but 
under the proposal a separate rating would be required to perform basic 
maintenance. One manufacturer stated that the proposal fails to 
recognize the unique relationship a manufacturer has to its products.
    FAA Response: The FAA made editorial changes to this section in the 
final rule. The FAA revised this section to state that part 145 
contains the rules a certificated repair station must follow with 
respect to the performance of maintenance, preventive maintenance, and 
alterations of an aircraft, airframe, aircraft, engine, propeller, 
appliance, and component part to which part 43 applies. The FAA notes 
that the revised language includes ``component part'' rather than 
``component part thereof;'' the use of ``component part'' is consistent 
with the terminology used in part 43. In addition, the FAA finds that 
the term ``maintenance,'' rather than the term ``rebuilt,'' more 
accurately describes the work performed under this part and is 
consistent with industry use.
    As proposed in Notice No. 99-09, the FAA is eliminating the limited 
rating for manufacturers. Because maintenance practices and aircraft 
technologies have evolved since the establishment of limited ratings 
for manufacturers, the FAA has determined that all repair facilities' 
systems for inspection, recordkeeping, and quality control should be 
consistent.
    In response to comments from manufacturers, the FAA finds that 
there is not a significant difference between warranty work (repairs 
made by the manufacturer) and maintenance. The FAA also disagrees with 
the manufacturers assertion that warranty work is an extension of the 
manufacturing process. Once an article completes the manufacturing 
process and receives its type certificate, any repair including 
warranty work must be accomplished per an approved maintenance program. 
The difference between the manufacturer's process and a repair station 
program is the requirement that the article is approved for return to 
service upon completion of maintenance.
    Manufacturers use numerous methods, such a maintenance/material 
review boards (MRB) under 14 CFR part 21, to correct manufacturing 
defects while articles are still in the manufacturing process. Repairs 
made to articles returned to the manufacturer for warranty work could 
constitute a change to the article's type design. Although these 
procedures are acceptable for manufacturers, they do not provide a 
means to return the item to service, for airworthiness release or to 
approve the alteration of a type design. A repair of this type may 
render the item unairworthy since the definition of ``airworthy'' is 
that it meets its type design and is safe for flight.

[[Page 41092]]

    As noted in Notice No. 99-09, the FAA will give full consideration 
to the quality control system established by the manufacturer to comply 
with part 21. However, the manufacturer's repair station will have to 
operate in compliance with parts 43 and 145.

Section 145.3  Definition of Terms

    Summary of Proposal/Issue: For purposes of part 145, the FAA 
proposed to define accountable manager, actual work documents, approve 
for return to service, approved data, article, certificate holding 
district office, certificated, composite, computer system, consortium, 
directly in charge, facility, housing, maintenance release, overhauled, 
and signature.
    Comments: The commenters generally asserted that only terms 
exclusive to part 145 should be defined in part 145. Some of those 
commenters stated that those terms should also be added to 14 CFR part 
1 to ensure they are used consistently throughout the regulations. 
Other commenters stated that any term not exclusive to part 145 should 
be defined only in part 1. However, some commenters asserted that all 
terms should be defined only in part 1. In addition, several commenters 
suggested adding definitions for the following terms: acceptable to the 
Administrator, airworthy, approved by the Administrator, authorized 
inspector, avionics, current as applied to technical information, 
inspection personnel, job functions, line maintenance, maintenance 
functions, product, quality assurance system, quality control system, 
satellite repair station, self evaluation, and supervisory personnel.
    With regard to the definition of ``accountable manager,'' the 
commenters generally are concerned that the accountable manager will be 
held personally liable for business decisions and stated that the 
definition conflicts with provisions in parts 121 and 135 that indicate 
the air carrier or commercial operator has the responsibility for the 
work performed for them by a repair station. The commenters recommended 
clarifying the definition to limit the personal liability of the 
accountable manager. Some commenters suggested the person in this 
position should be the point of contact with the FAA. Other commenters 
recommended changing ``accountable manager'' to ``repair station 
manager.''
    Many commenters expressed concern with the definition of ``actual 
work documents'' and indicated it is easily confused with other terms 
and should be clarified. Some commenters asked whether the word 
``actual'' refers to the original work documents. Several commenters 
noted the word ``detailed'' is ambiguous and allows for individual 
interpretation, and indicated the word ``signed'' should be changed to 
permit other methods to be used, such as stamps, initials, and 
electronic signatures. Several commenters indicated the definition of 
``actual work documents'' is a significant departure from current 
practices and could cause documentation to become extremely burdensome.
    Many commenters opposed the definition of ``approve for return to 
service'' in Sec. 145.3(c). Some of these commenters indicated that the 
definition is unnecessary and repeats or is inconsistent with existing 
regulatory requirements, particularly with regard to parts 43 and 65. 
The commenters proposed revisions to the definition and suggested 
moving it to part 43.
    One manufacturer supported the proposed definition of ``approved 
data'' and six commenters recommended clarifications to that proposed 
definition. Two associations opposed the definition of ``approved 
data'' because it is not consistent with part 1 or SFAR 36.
    Many commenters opposed the definition of ``article'' in 
Sec. 145.3(e). Several commenters stated the definition conflicts with 
the use of ``article'' in SFAR 36 and as it relates to technical 
standard orders.
    Commenters who opposed the definition of ``certificate holding 
district office'' (CHDO) stated the definition is subject to change 
whenever the FAA reorganizes and changes the names of its divisions and 
offices, and expressed concern over its application when multiple 
repair facilities are involved. Several commenters stated that the 
definition should state that the CHDO has responsibility for 
administering the certificate of the repair station.
    Many commenters supported the definition of ``certificated;'' 
however, one commenter suggested clarifications. One association 
opposed the definition and indicated it is redundant and would be more 
appropriately included in part 1.
    Commenters who opposed the definitions of ``composite'' and 
``computer system'' suggested that neither definition is adequate and 
both should be revised and clarified. The commenters provided suggested 
revisions for each definition.
    Most repair stations, manufacturers, and associations who commented 
on the definition of ``consortium'' opposed it. Several commenters 
expressed concern about the economic impact this could have on 
independent repair stations and noted that it appears the FAA is 
providing an economic advantage to type certificate holders. The 
commenters also noted that it appears the FAA is creating a two-tiered 
system of repair stations.
    The commenters generally opposed the definition of ``directly in 
charge'' and offered revisions for clarification. Several other 
commenters noted that Sec. 145.3(k) paraphrases language from part 121, 
and one association stated that if the term is adopted in part 145, it 
should use the same language as that found in part 121. Other 
commenters noted there is confusion as to whether the term applies to 
the oversight of external contractors or only internal operations.
    An association stated the definition of ``facility'' is confusing 
and contradictory, and should be excluded; however, the association 
provided an alternate definition if the Administrator can justify its 
inclusion in the rule. Some commenters recommended revising the 
reference to ``land'' to include public ramp space.
    Commenters generally supported the definition of ``housing'' in 
proposed Sec. 145.3(m)(1) but recommended revisions to the language in 
proposed Sec. 145.3(m)(2). The commenters recommended revising the term 
``structures'' to ``method'' and indicated the term ``segregation'' is 
subjective. Another commenter strongly opposed inclusion of the 
definition of housing in part 145, because it mixes the concepts of 
housing, equipment, and facility.
    Commenters generally did not support the proposed definition of 
``maintenance release.'' Some commenters recommended replacing the term 
``repair station document'' with ``statement'' to clarify that a 
maintenance release is not always a separate document and to ensure the 
requirements are consistent with part 43. One commenter noted that the 
proposed definition is contrary to parts 43, 121, and 135. Another 
commenter indicated that the maintenance release should apply to all 
persons authorized to perform maintenance, preventive maintenance, or 
alteration under 14 CFR and that the release provided in part 43 would 
be acceptable.
    The commenters generally indicated that ``overhauled'' is already 
defined in part 43, and the definition should be moved to part 1.
    Commenters supported the inclusion of a definition for 
``signature'' but generally indicated it should be in part 1. One 
commenter commended the FAA for defining the term ``signature'' but 
stated that because the term has caused serious consternation in the 
industry,

[[Page 41093]]

the FAA should publish advisory material governing acceptable means of 
compliance.
    FAA Response: Based on the comments received, the FAA has not 
included in the final rule definitions of the following: actual work 
documents, approve for return to service, approved data, certificate 
holding district office, certificated, composite, computer system, 
consortium, facility, housing, maintenance release, overhauled, and 
signature. However, the FAA has retained definitions for accountable 
manager, article, directly in charge, and line maintenance.
    The FAA generally agrees that terms not unique to part 145, such as 
``approve for return to service,'' ``approved data,'' ``certificated,'' 
``maintenance release,'' and ``overhauled,'' should not be defined in 
part 145. In addition, the term ``computer system'' is related to the 
proposed rating and class system, and no longer needs to be defined for 
the purposes of part 145. The term ``composite'' is not unique to part 
145, and its common definition is adequate for the purposes of part 
145. The concept of a consortium and references to actual work 
documents are not included in the final rule and therefore no longer 
require definition. Other terms, such as ``facility'' and ``housing,'' 
are adequately described in the particular sections in part 145 that 
address those subjects and do not require further definition. Finally, 
the FAA has removed the definition of ``signature'' from the final 
rule. The FAA notes that it recently has adopted policies and 
procedures to implement the requirements of the Government Paperwork 
Elimination Act, 44 U.S.C. 3504, which defines ``electronic signature'' 
and requires Federal agencies to provide for the option of using 
electronic signatures when practicable.
    The FAA disagrees with commenters who suggest that the term 
``accountable manager'' should be removed from part 145. The FAA has 
determined that it is necessary for a repair station to have one 
individual who is responsible for ensuring repair station operations 
are conducted in accordance with part 145. However, the FAA has revised 
the definition of ``accountable manager'' to clarify that the person in 
this position is responsible for and has authority over only repair 
station operations conducted under part 145. It was not the FAA's 
intent to dictate who is responsible for repair station operations that 
are unrelated to part 145, such as accounting. It also was not the 
intent of the FAA to impose personal liability for repair station 
operations on the accountable manager. The FAA notes that the term 
``accountable manager'' is consistent with JAR terminology, and its use 
is consistent with the FAA's harmonization efforts. Finally, the FAA 
notes that the definition in this final rule states that the 
accountable manager will serve as the primary contact with the FAA as 
suggested by many commenters.
    Although the term ``article'' is used throughout 14 CFR, the FAA 
has determined that it is important to define the term for the purposes 
of part 145 because it encompasses the items on which a repair station 
may perform maintenance. However, the FAA revised the definition so 
that the items listed are consistent with items on which maintenance, 
preventive maintenance, and alterations are performed under part 43.
    The FAA disagrees with commenters who assert that the definition of 
``directly in charge'' should not be placed in part 145 because it is 
used in part 121 and that inconsistencies could arise between the 
definitions. For the convenience of the user and because the definition 
specifically addresses the responsibilities under part 145, the FAA 
decided that the definition should be included in part 145. The FAA 
notes that the definition is consistent with the definition found in 
Sec. 121.378. However, in response to concerns raised by the 
commenters, the FAA revised the definition of ``directly in charge.'' 
The revised definition clarifies that the person is responsible for the 
work of a repair station that performs maintenance, preventive 
maintenance, and alterations, or other functions affecting aircraft 
airworthiness. With regard to the comment regarding work that is 
contracted to an outside source, the FAA notes that Sec. 145.217(b)(2) 
specifically requires that a repair station remain directly in charge 
of the work performed by a noncertificated person.
    In response to commenter requests, the FAA has added the definition 
of ``line maintenance'' to mean any unscheduled maintenance resulting 
from (1) scheduled checks that contain servicing and/or inspections 
that do not require specialized training, equipment, or facilities, or 
(2) unforeseen events. The definition is necessary to clarify the work 
that may be performed under Sec. 145.205(d). The performance of line 
maintenance is further discussed in the analysis of Sec. 145.205(d).

Section 145.5  Certificate and Operations Specifications Requirements

    Summary of Proposal/Issue: Proposed Sec. 145.5(a) would have 
prohibited any person from operating as a certificated repair station 
without a repair station certificate or operations specifications. 
Proposed paragraph (b) stated that a repair station could perform work 
only on articles for which it is rated and within the limitations of 
its operations specifications. In paragraph (c), the FAA proposed to 
revise the current requirement in Sec. 145.19 that a repair station 
display its repair station certificate at a place normally accessible 
to the public. The FAA proposed that the certificate be available for 
inspection by the public and the Administrator. Proposed paragraph (d) 
would have specified the contents of a repair station's operations 
specifications.
    Comments: Commenters generally opposed the language in proposed 
paragraph (b) because they felt it might restrict a repair station from 
performing work not directly related to aviation maintenance. In 
addition, an association stated that the proposed paragraph repeats the 
requirements in proposed Sec. 145.215, now Sec. 145.201. With regard to 
proposed paragraph (c), commenters generally supported not requiring 
display of a repair station certificate. However, some commenters 
suggested modifying the proposal by permitting only ``parties of 
interest'' or persons having a ``business need'' and the Administrator 
to inspect the certificate, rather than the ``public.'' One commenter 
who opposed the proposal asked why a certificate is issued if a repair 
station is not required to display it. That commenter also stated it 
would be more appropriate to require display of the operations 
specifications.
    FAA Response: This final rule contains paragraph (a) as proposed 
with a revision stating that a repair station also cannot operate 
without, or in violation of, its ratings. This revision is for clarity 
and does not place any additional burden on a repair station, because 
ratings are an integral part of a repair station's certificate. The FAA 
agrees that proposed paragraph (b) is similar to proposed 
Sec. 145.215(a)(1), now Sec. 145.201(a)(1) and, therefore, has not 
included proposed paragraph (b) in Sec. 145.5. However, the FAA notes 
that proposed Sec. 145.215(a)(1), now Sec. 145.201(a)(1), did not 
contain ``and within the limitations placed in its operations 
specifications,'' which was included in proposed Sec. 145.5(b). 
Therefore, that phrase has been added to Sec. 145.201(a)(1). With 
regard to proposed paragraph (c), the FAA disagrees that only ``parties 
of interest'' or persons with a ``business need'' should be allowed to 
inspect the certificate. The FAA finds that it is unlikely that a 
member of the general public will ask to inspect a repair station 
certificate unless

[[Page 41094]]

the person has, at least potentially, business with the repair station. 
In addition, determining who is a party of interest or whether a 
particular person has a business need would be subjective and difficult 
to enforce. Further, the FAA notes that the proposal relaxed the 
current requirement to always display the repair station certificate. 
Therefore, the FAA has adopted the proposal with the clarification that 
the certificate be available for inspection by the ``FAA,'' not the 
``Administrator,'' and that the repair station operations 
specifications also be made available. The FAA notes that operations 
specifications are an integral part of the repair station certificate. 
Finally, the FAA has deleted proposed paragraph (d), which would have 
set forth the contents of the operations specifications. The proposed 
paragraph was not regulatory in nature and only identified what the FAA 
may include in repair station operations specifications.

Subpart B--Certification

Section 145.51  Application for Certificate

    Summary of Proposal/Issue: The FAA based this proposed section on 
current Secs. 145.11, 145.13, and 145.71. The proposal would have 
revised the list of items an applicant is required to submit to the FAA 
with the application. In paragraph (a), the FAA proposed that an 
applicant submit (1) a copy of the repair station manual to the 
Administrator for approval; (2) a list by type, make, or model, as 
appropriate, of the aircraft, airframe, aircraft engine, propeller, 
appliance, component, or part thereof, for which an application is 
made; (3) a statement signed by the accountable manager that the 
procedures described in the repair station manual are in place and meet 
the requirements of the applicable regulations; (4) an organizational 
chart with names and titles of management and supervisory personnel; 
(5) a description of the applicant's facilities, including the physical 
address; and (6) a list of maintenance functions to be contracted out.
    Proposed paragraph (b) would have required that the equipment, 
personnel, technical data, and housing and facilities required for the 
certificate and rating be in place at the time of certification by the 
Administrator.
    In proposed Sec. 145.51(c), the FAA expanded the scope of current 
Sec. 145.71 by permitting an applicant located outside the United 
States to obtain a repair station certificate if it maintains foreign-
registered aircraft operated under the provisions of part 121 or part 
135, or aircraft engines, propellers, appliances, components, or parts 
thereof for use on such aircraft. In addition, the proposal (1) 
required the applicant to demonstrate that required fees have been paid 
and (2) codified the FAA's existing practice of requiring that a repair 
station located outside the United States complete in English an 
application for a repair station certificate.
    Proposed Sec. 145.51(d) would have permitted all consortiums that 
function as a single entity with regard to quality control and quality 
assurance functions, that hold an approved type certificate, and that 
perform maintenance, preventive maintenance, or alterations of that 
type-certificated product and components thereof to apply for a repair 
station certificate under this section.
    In proposed paragraph (e), the FAA addressed applications for 
additional ratings or renewal of repair station certificates.
    Comments: Many commenters questioned the reference in proposed 
paragraph (a)(1) to an approved rather than accepted repair station 
manual. Some of these commenters stated that use of the word 
``approved'' applies a more stringent standard to repair stations than 
to other certificate holders. With regard to proposed paragraph (a)(2), 
some commenters suggested requiring a listing by model series. Some 
commenters stated that a listing by parts is burdensome and would 
generate excessive paperwork and costs. One commenter recommended 
revising ``part'' to read ``part family.''
    Commenters generally opposed requiring the accountable manager to 
sign a statement that procedures are in place that meet the 
requirements of part 145. One commenter noted that the application 
process and subsequent FAA surveillance will ensure compliance with 
part 145.
    Commenters stated that the organizational chart should contain 
functional titles only. Those commenters opposed including names in the 
chart; some commenters stated that if names are included, the FAA must 
understand that those names would be current only at the time of 
application submission. Some commenters noted that current personnel 
assignments will be included in the required repair station roster. 
Another commenter recommended deleting this requirement because the 
information will be included in the repair station manual. One 
association stated that FAA approval of a repair station's 
organizational chart and personnel assignment is inappropriate.
    Some commenters suggested requiring only a general description of 
the applicant's housing and facilities under proposed paragraph (a)(5). 
An association contended that the proposed paragraph repeated the 
requirements in proposed Sec. 145.207(c), now Sec. 145.209(c). That 
association also opposed requiring an applicant's physical address in 
the application.
    With regard to proposed paragraph (a)(6), commenters stated that 
``maintenance functions'' is not adequately described; some commenters 
suggested using ``job function'' as set forth in appendix A. A few 
commenters indicated that only maintenance functions to be contracted 
to noncertificated persons should be listed in the application. Some 
commenters appear to have believed that the proposal would require FAA 
approval of vendors. One association stated that the required 
information will be provided on FAA Form 8130-3 and under 
Sec. 145.207(h), now Sec. 145.217(a), and, therefore, should be 
eliminated from the application.
    Commenters opposed the requirement in proposed paragraph (b) that 
equipment be in place at the time of certification and stated that is 
would be unnecessarily burdensome. Commenters suggested requiring only 
that the equipment be ``available.'' Commenters noted that some repair 
stations may lease equipment. Other commenters noted that it is only 
important that the equipment be in place when needed to perform the 
work.
    Commenters stated that proposed paragraph (c) should not be 
included in the final rule because the FAA has stated an intention to 
eliminate all distinctions between repair stations located inside the 
United States and those located outside the United States. Unions noted 
that the proposal does not require repair stations located outside the 
United States to comply with drug and alcohol testing programs 
applicable to repair stations located in the United States. Some unions 
and members of the U.S. Congress also urged reinstating the need-based 
requirement for repair stations located outside the United States. Some 
manufacturing associations opposed a need-based requirement and stated 
that market forces will determine if a repair station is ``necessary.''
    Commenters generally opposed proposed paragraph (d), which 
recognized consortiums that operate as a single organization. Some 
commenters felt that the proposal would provide an economic advantage 
to European repair stations. One association stated that the 
establishment of requirements for

[[Page 41095]]

satellite repair stations make this provision unnecessary.
    Comments varied with regard to proposed paragraph (e). Some 
commenters recommended alternative language, for example, referring to 
changes to ratings instead of additional ratings. Another commenter 
recommended deleting the paragraph and adding the requirements to 
proposed Sec. 145.57(b).
    FAA Response: In this final rule, paragraph (a)(1) references a 
repair station manual ``acceptable to the FAA.'' The FAA has not 
included the requirement for approval of the repair station manual in 
Sec. 145.207 of this final rule. In addition, the FAA has added a 
requirement in paragraph (a)(2) for submission of the applicant's 
quality control manual as required by Sec. 145.211(c). The requirement 
for a quality control manual is explained in the preamble discussion of 
Sec. 145.211. The FAA has revised paragraph (a)(3) (proposed paragraph 
(a)(2)) by using the term ``article'' rather than ``aircraft, airframe, 
aircraft engine, propeller, appliance, component or part thereof.'' 
Commenters interpreted proposed paragraph (a)(2) to require a listing 
by type, make, model, or ``part'' of the article for which the 
application is made. The final rule requires, as did the proposal, 
listing only the type, make, or model of the article for which 
application is made. The FAA notes that some repair stations work only 
on parts and therefore the type, make, or model for that part would be 
required.
    Based on commenter opposition, the FAA has eliminated the proposed 
requirement for the accountable manager to sign a statement that 
procedures are in place that meet the requirements of part 145.
    Paragraph (a)(4) is adopted as proposed. The FAA disagrees with 
commenters who suggest that only functional titles should be included 
on the organizational chart. The FAA finds that it is important to the 
certification process that a repair station demonstrate that qualified 
personnel are assigned to management and supervisory positions. The FAA 
notes that although personnel assignments may change after 
certification, current management and supervisory assignments must be 
maintained in the roster required by Sec. 145.161. In response to one 
commenter, the FAA notes that the organizational chart in the repair 
station manual does not require individual names.
    The FAA has adopted paragraph (a)(5) as proposed with minor 
editorial changes. Requiring only a general description of facilities 
would lead to subjective determinations of what kind of description is 
adequate. In addition, the FAA finds it is necessary to have a complete 
description, including the physical address of the repair station, for 
the certification process. The FAA recognizes that this information 
also will be included in the repair station manual. However, the FAA 
notes that the information in the manual must be kept current after the 
certification process; therefore, it performs an additional function.
    The FAA has adopted paragraph (a)(6) as proposed with minor 
editorial changes. The FAA notes that the application must include only 
the list of maintenance functions to be contracted out, not a list of 
vendors for approval. The FAA does not agree that this requirement 
should be restricted to maintenance functions contracted to 
noncertificated persons. The FAA finds that although this information 
must be made available to the FAA under Sec. 145.217(a), the 
information is important to the certification process and must be 
included in the application. The final rule explicitly provides that 
the list of maintenance functions to be contracted out is subject to 
the FAA's approval. The FAA notes that under the proposal, this 
information also was subject to FAA approval because it was included in 
the proposed repair station manual, which was an approved manual. In 
response to the comments regarding the meaning of ``maintenance 
functions,'' the FAA notes that maintenance functions include those 
individual tasks that comprise the maintenance, preventive maintenance, 
and alterations required to return an article to service.
    This final rule also includes paragraph (a)(7), which requires that 
an applicant for a repair station certificate submit a training program 
for approval in accordance with Sec. 145.163. Under the proposal, the 
training program would have been submitted as part of the repair 
station manual, which, as previously noted, was proposed to be an 
approved manual. The FAA notes that Sec. 145.163(a) contains a delayed 
compliance date; therefore, an applicant for a repair station 
certificate would not be required to submit a training program with its 
application until the date specified in Sec. 145.163(a).
    The FAA has revised paragraph (b) to permit a repair station to 
meet the equipment requirement by having a contract acceptable to the 
FAA that ensures the equipment will be available when the relevant work 
is performed. Such arrangements may include lease agreements and rental 
agreements. This will accommodate those repair stations that do not 
plan to purchase expensive equipment that may not be used regularly. 
The FAA will review the contract during the certification process, 
particularly with respect to the applicant's ability to obtain the 
equipment when the relevant work is performed. However, this provision 
does not relieve the applicant from having the equipment in place and 
available for inspection at the time of certification. The applicant 
need not physically retain the equipment after certification, but the 
FAA has determined that it is necessary that the applicant have the 
equipment in place during the certification process. The FAA will 
observe the placement of the equipment, whether the equipment works, 
and whether the applicant can use the equipment properly. The FAA notes 
that the repair station must have procedures in place for ensuring the 
equipment is calibrated properly, if applicable, at the time of use.
    With regard to proposed paragraph (c), the FAA has eliminated as 
many of the distinctions as possible between repair stations located 
inside the United States and those located outside the United States. 
However, the FAA has determined that the proposed application process 
distinctions are necessary. In response to commenters' concerns, the 
FAA notes that the proposed rule would require, exactly as does the 
current Sec. 145.71, that the certificate/rating applied for be 
necessary for maintaining or altering U.S.-registered aircraft and 
their parts, or foreign aircraft/parts operated under part 121 or part 
135.
    With regard to requiring personnel of repair stations located 
outside the United States to comply with U.S. drug and alcohol testing 
requirements, the FAA previously has found that there are significant 
practical and legal concerns precluding implementation of the anti-drug 
rule outside the United States. In adopting proposed paragraph (c), the 
FAA has used the word ``articles'' where appropriate. The FAA notes 
that proposed paragraph (c)(3), which explicitly provided that all 
documentation from a repair station located outside the United States 
had to be submitted in English, has not been included in this final 
rule. This paragraph was not necessary because paragraph (a) requires 
that all applications be in a format acceptable to the FAA, and the FAA 
has determined that only applications in English will be acceptable.
    Based on comments opposing the concept of consortiums, the FAA has 
removed from this final rule any provisions for consortiums. The FAA

[[Page 41096]]

notes that a rule for consortiums is unnecessary because only a limited 
number of exemptions have been issued to address this situation. The 
FAA finds that these limited requests would be better handled on a 
case-by-case basis under the part 11 exemption process.
    The FAA has adopted paragraph (e) as proposed with minor editorial 
changes. In addition, the paragraph also applies to applications for 
amended certificates. The FAA notes that this paragraph appears as 
paragraph (d) in this final rule.

Section 145.53  Issue of Certificate

    Summary of Proposal/Issue: The FAA based proposed Sec. 145.53 on 
current Secs. 145.11(b) and 145.71, which address the issuance of a 
repair station certificate. The FAA notes that in this final rule, 
Sec. 145.53 includes the requirements in proposed Sec. 145.2, which 
addressed repairs station certificates issued to persons located 
outside the United States, including persons in countries with which 
the United States has a bilateral aviation safety agreement (BASA). 
Comments on proposed Sec. 145.2 will be addressed below.
    Comments: Some commenters stated that the proposed language 
regarding issuance of certificates is ambiguous and unclear. One 
commenter recommended returning to the language in current 
Sec. 145.11(b). Commenters also recommended changing ``organization'' 
to ``person.''
    Commenters generally supported the language of proposed 
Sec. 145.2(a). However, one commenter noted that paragraph (a) does not 
include the limitations of proposed Sec. 145.53 and recommended adding 
the requirement to demonstrate that a repair station certificate is 
necessary in the interest of safety.
    Some commenters supported the language of proposed Sec. 145.2(b), 
now Sec. 145.53(b). However, a few commenters indicated that the 
language is redundant and unnecessary because the Administrator already 
is given this authority by law. One commenter agreed that the 
requirements for safe maintenance should not depend on the location of 
the repair station but is concerned that proposed Sec. 145.2(b) does 
not address repair stations located in countries for which BASAs with 
the United States do not exist.
    Many commenters are concerned with the FAA giving its oversight 
responsibility to foreign governments. In addition, some members of the 
U.S. Congress noted that it appears repair stations located outside the 
United States will be regulated less stringently than facilities based 
in the United States. They assert that the safety requirements imposed 
on repair stations located in the United States should be imposed on 
repair stations located outside the United States. The commenters added 
that the FAA has not made a case for allowing repair stations located 
outside the United States to obtain FAA approval for the sole purpose 
of siphoning business from domestic facilities.
    One foreign airline opposed proposed Sec. 145.2(b) because 
requiring repair stations located outside the United States to comply 
with all of part 145 is inconsistent with established BASAs.
    FAA Response: As previously noted, the FAA has moved the provisions 
in proposed Sec. 145.2 to Sec. 145.53 in this final rule because both 
sections deal with the issuance of repair station certificates. In 
addition, the word ``organization'' has been changed to ``person'' for 
consistency throughout the rule. The FAA notes that ``person'' is 
defined in part 1.
    In response to commenters' concerns about ambiguity in proposed 
Sec. 145.53(a), the FAA has reinstated the language found in current 
Sec. 145.11(b), with minor editorial changes. In this final rule, 
Sec. 145.53(a) applies to all repair stations, except those repair 
stations located in a country with which the United States has a BASA. 
Paragraph (a) provides that a person who meets the requirements of part 
145 is entitled to a repair station certificate and ratings, 
prescribing operations specifications and limitations necessary in the 
interest of safety.
    The FAA has included the text of proposed Sec. 145.2(b), which 
applies to repair stations located outside the United States in 
countries with which the United States has a BASA. In response to 
commenters' concerns regarding surveillance of these repair stations, 
the FAA notes that the local civil aviation authorities will handle 
certification tasks for those countries with which the United States 
has a signed BASA and associated maintenance implementation procedures 
(MIPs). Repair stations in these countries often must comply with 
additional requirements if those requirements are stated in the BASA 
and MIP. The FAA finds that where BASAs exist, repair stations undergo 
an equivalent level of oversight and inspection when compared to repair 
stations located in the United States. Not only does the FAA perform 
routine and, when necessary, extra surveillance when safety may be 
compromised, other JAA-member countries or national (civil) aviation 
authorities (NAAs) perform additional surveillance of these repair 
stations. Finally, the FAA notes that paragraph (b) is informational 
and clarifies how the BASA/MIP process works in relationship to the 
part 145 certification process. The provisions in proposed 
Sec. 145.2(b) are adopted as Sec. 145.53(b) with minor editorial 
changes.

Section 145.55  Duration and Renewal of Certificate

    Summary of Proposal/Issue: This proposed section was similar to 
current Secs. 145.15 and 145.17 but would have revised the current 
provision in Sec. 145.17(b) that a certificate or rating for a repair 
station located outside of the United States expires at the end of 12 
months after the date on which it was issued. Instead, the proposal 
provided that the certificate or rating would expire after 24 months.
    Proposed paragraph (d) would have modified the current requirement 
for certificate renewal by specifying that a repair station located 
outside the United States must submit its request for renewal no later 
than 90 days before its current certificate expires.
    Comments: Many commenters stated that proposed Sec. 145.55 
contradicts the FAA's intention of removing the regulatory distinctions 
between repair stations located inside the United States and those 
located outside the United States. One association stated that the FAA 
failed to present any justification for requiring repair stations 
located outside the United States to renew their certificates. That 
association believes that the burden of initial certification and 
continuous surveillance will be dictated under the BASAs and associated 
MIPs. Another commenter stated that requiring a repair station located 
outside the United States to renew its certificate every 24 months is 
incompatible with JAR 145. Some commenters stated that the proposal 
affects JAA-certificated repair stations located in the United States 
because there are no reciprocal terms for renewal and reevaluation. Two 
unions opposed expanding the certificate duration from 12 months to 24 
months, citing safety concerns and the quality of operations at repair 
stations located outside the United States.
    With regard to proposed paragraph (d)(1), a commenter noted that 
the requirement to apply for a renewal of a certificate 90 days before 
its expiration would be impractical if the 12-month certificate 
duration is retained in the final rule.
    FAA Response: Where appropriate, the FAA has eliminated the 
regulatory distinctions between repair stations

[[Page 41097]]

located inside the United States and those located outside the United 
States. However, to ensure an appropriate level of oversight, the FAA 
has determined that it is necessary to retain the expiration and 
renewal requirements for repair stations located outside the United 
States. Despite attempts to harmonize with JAA requirements, the FAA 
notes that the FAA never considered that certificate duration would be 
identical for repair stations located inside the United States and 
outside the United States.
    The FAA has retained in this final rule the 12-month certificate 
duration period found in current Sec. 145.17(b). However, this final 
rule also allows the FAA to renew the certificate for 24 months as 
currently permitted. The 12-month certificate duration period provides 
the FAA more oversight opportunity, especially when reviewing a renewal 
request for a newly certificated repair station located outside the 
United States. In light of the return to the 12-month certificate 
duration, the FAA has retained the current provision requiring repair 
stations to apply for renewal within 30 days of certificate expiration 
rather than the 90 days proposed. However, the FAA notes that if the 
repair station does not apply before that 30-day period, it must follow 
the application procedures in Sec. 145.51.
    The proposal is adopted with the changes discussed above and some 
minor editorial changes, including reordering of the paragraphs.

Section 145.57  Amendment to or Transfer of Certificate

    Summary of Proposal/Issue: The proposal was based on current 
Sec. 145.15 and delineated the circumstances under which a repair 
station had to apply for a change to its certificate. Proposed 
Sec. 145.57(b) stated that the privileges of the certificate could not 
be transferred if the repair station is sold, leased, or otherwise 
conveyed. Accordingly, to obtain a repair station certificate, a new 
owner or transferee of repair station assets would have had to apply 
for a new certificate under the provision of proposed Sec. 145.51.
    Comments: With regard to paragraph (a), some commenters recommended 
eliminating the requirement that the application be on a ``form.'' 
Commenters generally felt that the prohibition against transfer of 
repair station certificate privileges in proposed paragraph (b) was 
overly broad. Commenters noted the changes in the aviation maintenance 
industry, specifically the increasing number of repair stations owned 
by publicly held corporations. Commenters stated that the proposal 
would decrease the value of the repair station certificate and that 
there are no similar requirements for air carriers. Commenters stated 
that a change in ownership does not necessarily result in a material 
change in the operations of the repair station. Commenters complained 
about the recertification costs if the proposal is adopted.
    FAA Response: The FAA has revised paragraph (a) to clarify that a 
change to a certificate is necessary only if the certificate holder 
changes its location or requests to add or amend a rating. Therefore, 
changes to housing and facilities will not require a change to the 
repair station certificate. However, the FAA notes that Sec. 145.105 
provides that a repair station may not make any changes to its housing 
or facilities that could have a significant effect on its ability to 
perform the maintenance, preventive maintenance, or alterations under 
its certificate and operations specifications without written approval 
from the FAA. Paragraph (a) also has been revised to permit 
applications for changes in a format acceptable to the FAA rather than 
on a form as specified in the proposal.
    In response to commenters' concerns regarding the transfer of 
certificates, the FAA has retained the language in current 
Sec. 145.15(b) with minor editorial changes.

Section 145.59  Ratings

    Summary of Proposal/Issue: The proposed section would have 
completely revised the current system of ratings and classes specified 
in current Secs. 145.31 and 145.33.
    Comments: The comments to the proposal were previously addressed.
    FAA Response: As previously noted, the proposed rating system has 
been withdrawn and will be addressed in a subsequent rulemaking. The 
final rule retains the rating system found in current Sec. 145.31.

Section 145.61  Limited Ratings

    Summary of Proposal/Issue: Proposed Sec. 145.61 contained the 
transition period for the new ratings system.
    Comments: The comments on the transition period are not longer 
relevant to this rulemaking but will be considered in the subsequent 
rulemaking.
    FAA Response: In this final rule, Sec. 145.61 retains the 
provisions for limited ratings found in current Sec. 145.33 with minor 
editorial changes. The FAA notes that current Sec. 145.33(b)(13) is not 
included in this final rule. That paragraph provided for the issuance 
of a limited rating for any other purpose determined by the 
Administrator. The FAA does not issue any ``other'' limited ratings, 
except as specifically delineated in Sec. 145.33(b)(1) through (b)(12), 
and the provision in paragraph (b)(13) led repair stations to apply for 
``other'' limited ratings. Not including it in this final rule will 
eliminate any confusion caused by the provision.

Subpart C--Housing, Facilities, Equipment, Materials, and Data

    Summary of Proposal/Issue: The proposed title for subpart C was 
``Facilities, Equipment, Materials, and Housing.''
    Comments: One association suggested revising the title of the 
subpart to more closely parallel the order of subjects in the subpart.
    FAA Response: The FAA agrees and the title of subpart C is revised 
to read ``Housing, Facilities, Equipment, Materials, and Data.''

Section 145.101  General

    Summary of Proposal/Issue: This section is based on current 
Sec. 145.55 with no substantive changes.
    Comments: Two associations questioned the use of the words 
``quantity'' and ``quality'' because the words are too subjective. 
Commenters also opposed the use of the word ``standard'' because it is 
ambiguous and because subpart C does not contain measurable standards 
for repair station certification; several of these commenters suggested 
replacing the word ``standards'' with ``applicable requirements.'' 
Another association commented that the proposed section does not refer 
to ``housing'' and requested that the section be revised to include all 
items necessary for a repair station to be in compliance with the 
regulations.
    FAA Response: In this final rule, the FAA has not included the 
words ``quantity'' and ``quality'' and has replaced the word 
``standards'' in the proposal with ``applicable regulations.'' The FAA 
agrees that the words ``quantity'' and ``quality'' do not provide 
objective regulatory criteria. In this final rule, a certificated 
repair station will have to meet the applicable requirements for 
issuance of the certificate and ratings it holds. This section also has 
been revised to reference housing and data requirements because both 
subjects are addressed in this subpart. The reference to personnel 
requirements has been removed from this section because personnel are 
addressed under subpart D.

[[Page 41098]]

Section 145.103  Housing and Facilities Requirements

    Summary of Proposal/Issue: The FAA based proposed Sec. 145.103(a) 
on current Sec. 145.35.
    Proposed Sec. 145.103(b) described the facility and housing 
requirements currently found in Sec. 145.37. Specifically, proposed 
Sec. 145.103(b)(1) would have required suitable permanent housing for 
the largest type and model of aircraft on which a repair station 
performs maintenance, preventive maintenance, or alteration. Proposed 
paragraph (b)(2) would have provided for the use of permanent work 
docks and the performance of work outside, where permitted by climatic 
conditions. Proposed paragraph (b)(3) would have established new 
provisions to require a repair station that performs maintenance, 
preventive maintenance, or alterations on any article of composite 
construction to meet acceptable process requirements.
    Proposed Sec. 145.103(b)(4) through (b)(7) would have revised 
current requirements to apply to the proposed system of ratings.
    Proposed Sec. 145.103(b)(8) would have specifically established a 
requirement for a repair station to meet any special facilities 
requirements determined by the manufacturer and approved by the 
Administrator for an article or system on which maintenance, preventive 
maintenance, or an alteration is performed.
    In Sec. 145.103(c), the FAA proposed to permit a repair station to 
perform certain job functions on an aircraft at a place other than its 
fixed location because of a special circumstance as determined by the 
Administrator.
    Comments: With regard to proposed Sec. 145.103(a), commenters 
expressed concern about the subjective nature of the word ``suitable'' 
as used to describe required housing and facilities. Commenters also 
opposed proposed paragraph (a)(5)(v), which would have permitted the 
Administrator to determine additional circumstances under which 
machines and equipment should be segregated. These commenters stated 
that the proposal would allow for subjective opinions from individual 
inspectors. Some commenters asserted that if proposed paragraph 
(a)(5)(v) is adopted, the FAA should establish a mediation process or 
objective criteria on which inspectors could base their decisions.
    Various commenters objected to proposed paragraph (a)(6), which 
would have required a repair station to have assembly space in an 
enclosed structure where the largest amount of assembly work is done, 
on the grounds that repair stations may need to perform work outside. 
One commenter stated that instead of eliminating work outdoors, the FAA 
should require adequate protection from the environment. However, one 
union supported the elimination of outdoor work. The union asserted 
that environmental factors can have an adverse effect on working 
conditions. Opposition also was expressed to the requirement in 
proposed paragraph (a)(7) for a repair station to have storage 
facilities used exclusively to store and protect parts. Commenters 
argued that the provision would require repair stations to build 
additional facilities and that exclusive use of a storage facility is 
not necessary to ensure an article is airworthy.
    Some commenters opposed proposed paragraphs (a)(8) through (a)(10) 
because the requirements relate to environmental codes, and FAA 
inspectors are not trained to conduct Occupational Safety and Health 
Administration (OSHA) audits. In addition, some commenters complained 
that those paragraphs lack objective standards and, therefore, would be 
subject to the interpretation of individual FAA inspectors.
    Some commenters opposed the use of the word ``suitable'' in 
proposed paragraph (b)(1) on the basis that it could lead to subjective 
interpretations. Some commenters suggested that the requirement for 
enclosed permanent housing be based on the capability list rather than 
the repair station rating. Other commenters cited the expense 
associated with requiring such housing.
    One commenter stated that the use of permanent work docks in 
proposed paragraph (b)(2) should not be based on climatic conditions. 
Another commenter stated that the proposal implies that permanent work 
docks are required to work outside. That commenter contended that work 
docks are not always necessary. One commenter interpreted the proposal 
as prohibiting work docks as allowed under the current rules. Another 
commenter opposed requiring FAA acceptance of the work docks on the 
basis that FAA inspectors are not able to determine which work docks 
are acceptable.
    Commenters who opposed proposed paragraph (b)(3) stated that all 
maintenance, preventive maintenance, or alterations require meeting 
acceptable process requirements, not just work performed on composites. 
Other commenters recommended deleting this provision because it does 
not relate to housing and facilities requirements.
    One association stated that proposed paragraphs (b)(4) through 
(b)(7) are redundant to the requirements of proposed paragraph (a), 
which permits the Administrator to base the housing and facilities 
requirements on the rating held and the work to be performed.
    Commenters suggested possible alternative language for proposed 
paragraph (b)(8) to permit facilities equivalent to those recommended 
by the manufacturer.
    Comments on proposed paragraph (c) will be addressed in the 
discussion of Sec. 145.203, which includes the proposed requirements in 
this final rule.
    FAA Response: The FAA has revised Sec. 145.103 in response to 
issues raised by the commenters. The FAA agrees that the housing and 
facilities requirements should be based on a repair station's ratings 
and the work performed. This final rule does not contain many of the 
specific requirements opposed by the commenters. This final rule 
provides regulatory flexibility and accommodates changing technologies 
while helping to ensure only airworthy articles are returned to 
service.
    For example, this rule requires that a repair station have 
facilities that provide for the proper segregation and protection of 
articles, and segregated work areas enabling environmentally hazardous 
or sensitive operations to be performed without affecting other work.
    The FAA notes that commenters who contend that the FAA should not 
issue regulations that address ventilation, lighting, and control of 
temperature and humidity appear to believe that this area should be 
regulated only by OSHA. The FAA notes that the regulations addressing 
these issues are intended to ensure the quality of maintenance 
performed. If articles and workers performing maintenance functions on 
these articles are not protected from these elements, the work may not 
be performed properly. Therefore, the issue is one of the quality of 
the work performed, which is clearly within the scope of the FAA's 
authority.
    This final rule includes a requirement that a repair station with 
an airframe rating must provide suitable permanent housing to enclose 
the largest type and model aircraft listed on its operations 
specifications. Unlike the current requirement, this final rule does 
not require a repair station to provide housing for at least one of the 
heaviest aircraft within the weight class of the rating it seeks. In 
response to comments opposing the use of the word ``suitable,'' the FAA 
finds that because the operations conducted by repair stations vary, 
the agency cannot dictate one type of permanent housing suitable for 
each repair station. Therefore, the word ``suitable'' is retained in 
this final rule.

[[Page 41099]]

    This final rule also provides that a repair station may perform 
maintenance functions outside of its housing if the repair station 
provides facilities that are acceptable to the FAA and meet the 
requirements of Sec. 145.103(a) to ensure the work can be performed in 
accordance with the requirements of this part and part 43.
    The FAA notes that proposed paragraph (c), which is included in 
Sec. 145.203 of this final rule, will be discussed later.

Section 145.105  Change of Location, Housing, or Facilities

    Summary of Proposal/Issue: The proposal specified the types of 
changes that would require the Administrator's approval. The proposal 
would have required that any change to the location or facilities of a 
repair station, including substantial rearrangement of space within its 
present location, be approved in advance. The proposal also stated that 
a repair station may not operate at a new location until approved by 
the Administrator.
    Comments: Commenters generally opposed the proposal. They stated 
that the proposal would lead to subjective and inconsistent 
interpretations by inspectors. Commenters stated that the rule should 
not address ``any'' change, and only changes that adversely affect the 
airworthiness of articles should require FAA approval. Some commenters 
asserted that only reductions in space should require approval. Other 
commenters opposed any regulation of changes to housing and facilities. 
One association opposed the proposal because there is no safety 
justification for requiring approval to rearrange equipment.
    FAA Response: In response to commenters' concerns, the FAA has 
retained the requirements in current Sec. 145.21 with some changes. 
Specifically, in this final rule, Sec. 145.105(a) requires approval 
only of changes to the location of the repair station's housing. 
Paragraph (b) requires FAA approval of changes to housing or facilities 
required by Sec. 145.103 only if the change would have a significant 
effect on the repair station's ability to perform maintenance, 
preventive maintenance, or alterations under its certificate and 
operations specifications. Therefore, not all changes to housing or 
facilities will require approval. The FAA notes that the rule does not 
require FAA approval for equipment changes under this section. 
Paragraph (c) retains with minor editorial changes the provision that 
the FAA may prescribe conditions and limitations under which the repair 
station must operate during a change to its location, housing, or 
facilities.

Section 145.107  Satellite Repair Stations (Proposed Secs. 145.107 and 
145.109)

    Summary of Proposal/Issue: In these sections, the FAA proposed to 
permit a repair station to establish a satellite repair station to 
perform work at a place other than the repair station's primary 
facility. Proposed Sec. 145.107(a) described a satellite repair station 
and specified the requirements for the certification of these 
facilities. In paragraph (b), the FAA proposed to permit the parent and 
satellite repair station to use each other's personnel and equipment.
    Additionally, in paragraphs (c) and (d) the FAA proposed to codify 
the current practice that a repair station located within the United 
States would not be permitted to have a satellite repair station 
located outside the United States. Likewise, a repair station located 
outside the United States would not be permitted to have a satellite 
repair station located within the United States.
    Because proposed Sec. 145.109 addressed satellite repair station 
operations, it has been combined with Sec. 145.107 in this final rule. 
Proposed Sec. 145.109 required that a chief inspector or an assistant 
chief inspector be designated for a satellite repair station. The 
proposal also required that the inspector be available at the satellite 
repair station or, if away from the premises, by telephone, radio, or 
other electronic means.
    Comments: Commenters generally supported the concept of satellite 
repair stations. However, the majority of commenters requested that the 
CHDO for the repair station with managerial control also have 
responsibility for the satellite repair station. Commenters also 
indicated that a single point of contact with the FAA is important.
    With regard to satellite repair station manuals, commenters 
requested that a satellite repair station be able to combine its manual 
with the manual of the managing repair station. Some commenters 
suggested that the satellite repair station's procedures could be in an 
appendix to the managing repair station's manual. A few commenters 
stated that one manual would permit one quality control system for the 
managing and satellite repair stations, which would promote safety. 
Commenters also stated that the manual should be accepted rather than 
approved as provided for in the proposal.
    Commenters stated that the word ``independent'' should be removed 
from proposed paragraph (b) because it has not been defined and appears 
to create another category of satellite repair stations.
    Commenters generally opposed proposed paragraphs (c) and (d) 
because the restrictions from having satellite repair stations in 
countries other than the country of the managing repair station hinder 
the expansion of the aviation industry across international borders. 
Commenters stated that a single quality control system offers the 
potential for a satellite repair station to be located ``globally.'' 
Commenters asked whether a repair station located outside the United 
States may have a satellite repair station located outside the United 
States and, if so, whether the satellite repair station must be in the 
same country as the managing repair station.
    With regard to proposed Sec. 145.109, commenters opposed the use of 
the terms ``chief'' inspector and ``assistant chief'' inspector. Some 
commenters stated that part 145 does not require those specific 
positions. The JAA recommended amending the proposal to require that 
the inspector be present when there is a need to inspect or return to 
service an article. The JAA noted that it is important to prevent 
telephone-based judgments made on the basis of another person's 
observations when an aircraft has been involved in an incident.
    FAA Response: The FAA has revised this section in the final rule to 
clarify the requirements for satellite repair stations. In addition, 
the final rule does not use the term ``parent'' to describe the 
managing repair station but rather refers to it as the ``repair station 
with managerial control'' over the satellite repair station.
    The FAA intends that the CHDO for the repair station with 
managerial control also hold the satellite's repair station 
certificate. Surveillance will be conducted by the geographic flight 
standards district office (FSDO) at the request of the CHDO. Although a 
satellite repair station will have its own certificate, it may not hold 
a rating not held by the repair station with managerial control. The 
satellite need not hold all the ratings held by the managing repair 
station. This requirement is in paragraph (a)(1).
    With regard to the satellite's repair station manual, the satellite 
may use the managing repair station's manual if it is applicable to the 
satellite's operations. The two manuals may not be identical because 
the operations of the managing and satellite repair stations may not be 
identical. It is likely that the satellite repair station will use 
portions of the managing repair station's manual. The

[[Page 41100]]

FAA notes that the manuals could be combined with specific procedures 
set apart for the satellite repair station. When applying for its 
certificate, the satellite repair station must submit whatever manual 
it will use. The FAA notes that the manual must be acceptable to the 
FAA rather than approved by the Administrator, as proposed.
    This final rule also requires that the applicant for a satellite 
repair station certificate submit a quality control manual acceptable 
to the FAA. Like the repair station manual, the quality control manual 
may be identical to the managing repair station's quality control 
manual, if appropriate. The requirement for a quality control manual 
will be discussed in the analysis of Sec. 145.211.
    Paragraph (b) of this final rule contains the requirements of 
proposed paragraph (b) and proposed Sec. 145.109. References to 
``chief'' inspector and ``assistant chief'' inspector have been 
deleted. The FAA also included language to clarify that inspection 
personnel designated for a satellite repair station must be available 
at the satellite repair station any time a determination of 
airworthiness or return to service is made. In other circumstances, 
inspection personnel may be away from the premises but must be 
available by telephone, radio, or other electronic means.
    This final rule combines proposed paragraphs (c) and (d) and 
provides that a satellite repair station may not be located in a 
country other than the domicile country of the certificated repair 
station with managerial control. This prohibition is necessary because 
of certification and surveillance issues. For example, if the repair 
station with managerial control is located in a country with whom the 
United States has a BASA and MIP, certification is accomplished under 
the BASA and MIP and surveillance is performed by the CAA of the 
foreign country. If the satellite repair station is located in another 
country with whom the United States does not have a BASA and MIP, 
certification of the satellite repair station could not be accomplished 
in a manner consistent with that of the repair station with managerial 
control. In addition, the entity providing surveillance of the repair 
station with managerial control would not provide surveillance of the 
satellite repair station.

Section 145.109 (Proposed Sec. 145.111) Equipment, Materials, and Data 
Requirements

    Summary of Proposal/Issue: The proposed requirements were based on 
current Secs. 145.47 and 145.49. The proposal would have retained the 
requirements similar to those of current Secs. 145.47(a) and (b), and 
145.49(a); however, the proposal would have required that tools used to 
accomplish work must be those recommended by the manufacturer or 
equivalent to the manufacturer's recommendation, and acceptable to the 
Administrator. The proposal also would have required that tools used 
for product acceptance and/or for making a finding of airworthiness be 
tested at regular intervals to ensure correct calibration to a standard 
acceptable to the Administrator.
    Comments: Commenters opposed proposed paragraph (a) on the basis 
that it precludes repair stations from renting or leasing equipment. 
The commenters stated that this option is particularly important for 
expensive, rarely used tools.
    Commenters stated that proposed paragraph (b) is vague. Some 
commenters requested that the FAA define a ``standard acceptable to the 
Administrator.'' Other commenters stated that the regulation should 
state that the standards be derived from National Institute of 
Standards and Technology (NIST) standards or ``accepted or approved by 
a national government standards agency.''
    Commenters who opposed proposed paragraph (c) stated that the tools 
and equipment should be required to be in place only when the work is 
being performed. In addition, some commenters stated that the proposal 
limits the repair station's ability to develop alternative tooling that 
performs the intended function and would be acceptable to the 
Administrator. A few commenters recommended eliminating this paragraph 
because equipment and tooling already are addressed in Sec. 43.13(a).
    Because the FAA has moved the requirements for a repair station to 
keep current certain documents from proposed Sec. 145.201(b) and (c) to 
Sec. 145.109 in this final rule, comments on maintaining current 
documents and possessing manufacturers' maintenance manual requirements 
in proposed Sec. 145.201(b) and (c) will be discussed here. Commenters 
encouraged the FAA to revise the rule to permit the use of electronic 
databases. Some commenters stated that the rule language should 
reference part 43. Commenters also opposed the requirement to always 
have all the documents and data listed in this section. They contended 
that the information is necessary only when the work is being 
performed. Specifically, commenters stated that there is no need for a 
repair station to have all service bulletins applicable to a part 
unless work required by the particular service bulletin is being 
performed. Other commenters complained that to require a repair station 
to maintain all current manufacturers' maintenance manuals relating to 
an article when maintenance is performed is unnecessarily costly. Some 
commenters requested that ``approved technical data'' be added to the 
list of required data.
    FAA Response: The FAA has substantially revised the proposed 
requirements based on the comments. The language adopted in this final 
rule is based in part on language provided by commenters.
    In this final rule, paragraph (a) requires a repair station to have 
the equipment, materials, and tools necessary to perform the work under 
its repair station certificate and operations specifications in 
accordance with part 43. Although proposed paragraph (a) did not 
preclude repair stations from renting or leasing equipment, the FAA has 
revised that paragraph to clarify that the equipment must be located on 
the repair station's premises and under its control when the work is 
being done.
    The FAA has revised paragraph (b) as proposed to require that a 
repair station ensure that all test and inspection equipment and tools 
used to make airworthiness determinations are calibrated to a standard 
acceptable to the FAA. The FAA will issue guidance regarding what 
standards will be acceptable to the FAA. The FAA has issued numerous 
exemptions from the current requirement that calibration be to a 
standard derived from the NIST when the alternative standard has been 
accepted by the NIST as adequate. The intent of this provision is to 
provide more regulatory flexibility. The FAA notes that this paragraph 
no longer requires that the equipment be calibrated at ``regular'' 
intervals. The interval at which measuring and test equipment is 
calibrated depends on the type and use of the equipment; therefore, the 
word ``regular'' does not adequately describe when the equipment should 
be calibrated. The FAA notes that Sec. 145.211(c)(1)(viii) requires 
that a repair station's quality control manual contain a description of 
the systems and procedures for calibrating measuring and test equipment 
used in maintaining articles, including the intervals at which the 
equipment will be calibrated.
    Paragraph (c) has been simplified and the references to appendix A 
to part 145 have been eliminated. This final rule provides that 
equipment, materials, and tools must be those recommended by

[[Page 41101]]

the manufacturer of the article, or at least an equivalent, and 
acceptable to the FAA. In response to the comment, the FAA notes that 
the rule permits a repair station to develop its own tooling provided 
it is at least equivalent to that recommended by the manufacturer and 
acceptable to the FAA.
    The FAA has replaced proposed paragraph (d) with requirements 
similar to those in proposed Sec. 145.201(b) and (c). The FAA has 
determined that requirements for maintaining documents and data are 
more appropriately located in Sec. 145.109. This final rule requires 
each repair station to maintain, in a format acceptable to the FAA, the 
documents and data necessary to perform work under its repair station 
certificate and operations specifications in accordance with part 43. 
The documents and data must be current and accessible when the relevant 
work is being done. As suggested by one commenter, the FAA has added a 
reference to other applicable data acceptable to or approved by the 
FAA.
    In addition, the final rule permits the required documents and data 
to be maintained in a format acceptable to the FAA. As previously 
noted, this language will permit the information to be stored 
electronically and give the FAA the discretion to permit the storage of 
information through other media, if appropriate.
    Regarding the document and data requirements, the FAA notes that 
Sec. 43.13 already requires that work be performed in accordance with 
the methods, techniques, and practices prescribed in the current 
manufacturer's maintenance manual or Instructions for Continued 
Airworthiness or other methods, techniques, and practices acceptable to 
the Administrator.

Subpart D--Personnel

Section 145.151  Personnel Requirements

    Summary of Proposal/Issue: In Sec. 145.151 the FAA proposed to 
establish the same general personnel requirements for repair stations 
located inside the United States as those located outside the United 
States. The FAA also proposed to require each certificated repair 
station to designate an individual as the accountable manager.
    Comments: For reasons previously discussed, commenters opposed 
requiring a repair station to designate an accountable manager as 
proposed in paragraph (a)(1). Commenters opposed the requirement in 
proposed paragraph (a)(2) for a ``sufficient'' number of personnel on 
the basis that it is vague. Some commenters stated that the level of 
staffing is a business decision. An association stated that this 
language may prohibit smaller facilities from meeting the requirements 
of the paragraph because the workload of a small repair station can 
fluctuate dramatically during a given time period.
    One commenter asked whether ``maintenance operations'' as used in 
proposed paragraph (a)(3) include alterations. A few commenters 
recommended removing the word ``noncertificated'' from that paragraph. 
Other commenters stated the proposal could require all noncertificated 
employees, such as building maintenance personnel, to be tested. Some 
commenters stated that requiring practical tests of noncertificated 
employees would be impractical because the repair station would have to 
develop and administer tests for every conceivable job function.
    With regard to proposed paragraph (c), commenters again criticized 
the use of the word ``sufficient.'' Commenters also criticized the use 
of the word ``technique'' because it is unrelated to a standard.
    FAA Response: The FAA has made editorial changes, removed redundant 
requirements, and reorganized this section for clarity. The language 
adopted in the final rule is based, in part, on language proposed by 
commenters.
    As discussed in the analysis of Sec. 145.3, the FAA has retained 
the position of accountable manager. The FAA notes that a repair 
station is not required to hire an individual to fill this position but 
may designate a current employee as the accountable manager. In 
addition, a satellite repair station need not designate an accountable 
manager; the accountable manager for the repair station with managerial 
control over the satellite repair station may serve in this position.
    The FAA has retained the requirement for a ``sufficient'' number of 
employees in paragraph (c). Because repair stations vary in size, the 
FAA cannot require a specific number of employees, and the language 
accommodates this situation. The FAA notes that the rule does not 
require a repair station to always maintain a certain staffing level 
but rather requires it have a sufficient number of employees for the 
work being performed.
    In response to one commenter's concern, paragraph (d) in the final 
rule applies only to employees who perform maintenance functions under 
part 145. The FAA disagrees with the commenters who suggested removing 
the word ``noncertificated.'' The final rule requirement that a repair 
station determine the abilities of its employees based on training, 
knowledge, experience, or practical tests applies only to 
noncertificated employees who perform maintenance functions. The FAA 
notes that a determination based on these criteria is not required for 
part 65 certificated employees.
    In response to the commenter who asked whether maintenance 
operations include alterations, the FAA previously noted that 
maintenance functions (proposed as maintenance operations) include all 
the tasks required to perform maintenance, preventive maintenance, and 
alterations.

Section 145.153  Supervisory Personnel Requirements

    Summary of Proposal/Issue: In this section, the FAA proposed 
minimum practical experience and training requirements for supervisory 
personnel. The proposal also would have expanded the Administrator's 
ability to determine the competence of all supervisory personnel. In 
addition, this proposed section would have required minimum experience 
and training requirements for inspection personnel employed at repair 
stations.
    Comments: Commenters generally opposed this proposed section. 
Commenters questioned why the proposal requires part 65 certification 
of supervisors. Some of these commenters questioned why a certificated 
supervisor also must have 18 months of experience. One association 
asked what constitutes 18 months of experience: for example, performing 
the maintenance function once a month or once in 18 months. Commenters 
opposed the proposed requirement for a ``sufficient'' number of trained 
personnel to supervise the maintenance performed and suggested 
replacing the term ``trained personnel'' with ``qualified personnel.'' 
Commenters asked for clarification of the difference between a 
``supervisor'' and a ``person directly in charge.'' In addition, 
commenters opposed the FAA determining the appropriate ratio between 
supervisors and apprentices or students. Commenters also opposed the 
proposal to permit the FAA to evaluate supervisory personnel, 
particularly based on testing. Commenters felt this provision is 
overreaching and may allow abuse and personal bias.
    Commenters stated the proposal does not eliminate the distinctions 
between repair stations located inside the United States and those 
located outside the United States. Unions opposed exempting foreign 
repair station personnel from part 65 certification requirements.

[[Page 41102]]

    FAA Response: The FAA has revised this section to clarify its 
requirements and remove redundant provisions. In addition, this section 
no longer addresses inspection personnel requirements. For clarity, the 
FAA determined that it would be better to address inspection personnel 
requirements in a separate section.
    The final rule retains the requirement for a ``sufficient'' number 
of personnel to perform supervisory duties. As previously noted, 
because repair stations vary in size, the FAA cannot require a specific 
number of supervisors. The final rule also requires that supervisors 
hold part 65 certification if employed by a repair station located 
inside the United States. However, the rule does not require 
supervisors employed by a repair station located inside the United 
States to have either 18 months of experience or be trained or 
thoroughly familiar with the means used to accomplish the maintenance 
work being supervised, as proposed. The FAA notes it is not necessary 
to set forth such experience requirements in this rule because the 
proposed experience requirements are similar to the 18-month practical 
experience requirement in Sec. 65.77 for mechanics and Sec. 65.101 for 
repairmen. However, supervisors at repair stations located outside the 
United States are required under the final rule to meet the proposed 
experience requirements because they are not required to have part 65 
certification. During the certification process of a repair station 
that is located outside of the United States, the FAA assesses the 
foreign country's licensing procedures to determine if they meet 
minimum safety standards that are acceptable to the FAA. Also, under 
BASAs with other countries, the FAA can assesses the adequacy of 
licensing procedures either separately or as one of the elements of the 
MIP.
    If the FAA determines that a country's licensing procedures are not 
acceptable, the FAA has the discretion to require that the personnel 
performing covered maintenance functions in those repair stations be 
certificated under part 65 before the station will be issued a part 145 
certificate. In the case of a BASA where the Civil Aviation Authority 
(CAA) does meet all of the FAA licensing standards, the Administrator 
would require the CAA to add additional requirements. In addition, part 
145 sets forth minimum experience and knowledge requirements for 
foreign maintenance personnel. Adequate controls are in place that 
allow the Administrator to exercise discretion in the interest of 
safety and to ensure that only qualified maintenance personnel perform 
work in repair stations located outside the United States. The FAA 
finds that requiring all foreign maintenance personnel to meet the part 
65 certification requirements would not serve any safety purpose, and 
it would place an unnecessary burden on both the FAA and the foreign 
maintenance personnel. Imposing such requirements would impair the 
exercise of discretion, and thus not be appropriate.
    Finally, this final rule includes the requirement that supervisors 
understand, read, and write English. The FAA notes that the proposal 
contained such a requirement for supervisors at repair stations located 
outside the United States. Supervisors at repair stations located 
inside the United States are required to be certificated under part 65; 
that part requires those individuals to read, write, speak, and 
understand English.
    The final rule does not dictate the ratio of supervisors to 
individuals being supervised but leaves this decision to the repair 
station. With regard to the difference between a ``supervisor'' and a 
``person directly in charge,'' the definition of ``directly in charge'' 
provides that the person need not physically observe and direct each 
worker constantly but must be available for consultation on matters 
requiring instruction or decision from higher authority. A supervisor 
would physically observe and direct a worker when needed.
    The FAA has not included proposed paragraph (g) in the final rule. 
This paragraph provided for FAA evaluation of supervisory personnel 
based on employment records, tests, or any other methods. The FAA has 
determined that such a provision is not necessary because this section 
already requires supervisory personnel to meet certain qualifications.

Section 145.155 (Proposed Sec. 145.153) Inspection Personnel 
Requirements

    Summary of proposal/issue: Proposed Sec. 145.153 would have 
addressed inspection personnel requirements.
    Comments: Commenters opposed the proposal to permit the FAA to 
evaluate inspection personnel, particularly based on testing. 
Commenters felt this provision is overreaching and may allow abuse and 
personal bias.
    FAA Response: For clarity, the FAA has addressed inspection 
personnel requirements in this separate section. The FAA notes that 
minimum qualification requirements, currently found in Sec. 145.45, 
were inadvertently omitted from the proposal. The final rule contains 
qualification requirements similar to those found in the current rule. 
The final rule does not require that inspection personnel hold part 65 
certification. However, the inspectors must be thoroughly familiar with 
applicable regulations and inspection methods, techniques, practices, 
aids, equipment, and tools used to determine the airworthiness of an 
article. In addition, they must be proficient in using various types of 
inspection equipment and visual inspection aides appropriate for the 
article being inspected. Finally, the final rule includes the 
requirement that inspectors understand, read, and write English.
    The FAA notes that this section does not include the proposed 
provision that would permit the FAA to evaluate inspection personnel 
based on employment records, tests, or any other methods. As noted in 
the discussion of Sec. 145.153, inspection personnel are already 
required to meet certain qualifications.

Section 145.157 (Proposed Sec. 145.211(c)) Personnel Authorized To 
Approve an Article for Return to Service

    Summary of Proposal/Issue: Proposed Sec. 145.211(c) would have set 
forth the qualifications for inspectors authorized to perform 
inspections under that section.
    Comments: No comments were received on this proposal.
    FAA Response: The FAA has determined that the requirements for 
personnel authorized to return an article to service are more 
appropriately included in subpart D, which contains all other personnel 
requirements, rather than subpart E, which addresses operating rules. 
The final rule requires that personnel authorized to return an article 
to service be part 65 certificated unless employed by a repair station 
located outside the United States. The final rule requires personnel 
employed by a repair station outside the United States to have 18 
months of practical experience and be thoroughly familiar with the 
applicable regulations and proficient in the use of the various 
inspection methods, techniques, practices, aids, equipment, and tools 
appropriate for the work performed and approved for return to service. 
Such experience requirements are not necessary for personnel authorized 
to approve an article for return to service who are employed by a 
repair station located in the United States, because those personnel 
hold part 65 certification. Finally, the final rule also includes the 
requirement that personnel authorized to approve an article for return 
to service must understand, read, and write English.

[[Page 41103]]

Section 145.159 (Proposed Sec. 145.155) Recommendation of a Person for 
Certification as a Repairman

    Summary of Proposal/Issue: The proposal would have required a 
repair station to recommend a sufficient number of repairmen to meet 
all applicable requirements of this part if the repair station chooses 
to use repairmen to satisfy these requirements. The FAA also proposed 
to delete provisions of current Sec. 145.41(b), which required that 
each person recommended must be at or above the level of shop foreman 
or department head or be responsible for supervising the work performed 
by the repair station. Section 145.41(b) also permitted a repair 
station to recommend any employee who meets the requirements of current 
Sec. 65.101 for certification as a repairman.
    Consistent with proposed Sec. 145.153(g), proposed Sec. 145.155(b) 
also would have permitted the Administrator to evaluate any repairman's 
ability by inspecting employment and experience records and/or by 
administering an oral or practical test.
    Comments: Comments on the proposed language varied. One association 
contended that the requirements under Sec. 65.101 are explicit enough 
that proposed Sec. 145.155(a)(3) and (b)(1) through (b)(3) is not 
necessary. That association stated that the proposed language is 
confusing because it could be interpreted as imposing requirements in 
addition to those found in Sec. 65.101. Commenters recommended 
eliminating proposed paragraph (b), which permitted subsequent FAA 
evaluation of a repairman based on employment, tests, or any other 
methods.
    FAA Response: The FAA has substantially revised the proposal to 
address commenters' concerns. This final rule simply requires a repair 
station who chooses to use repairmen to meet the applicable personnel 
requirements of this part to certify that each person recommended is 
employed by the repair station and meets the eligibility requirements 
of Sec. 65.101. The rule no longer requires a repair station to certify 
that the person has the necessary training and practical experience to 
perform the work functions for which certification is required. It was 
not the FAA's intent to impose training or experience requirements 
beyond those imposed in Sec. 65.101.
    Current Sec. 145.41 requires that a certificated repair station 
recommend at least one person for certification as a repairman. Under 
this final rule, a repair station is not required to recommend any 
specific number of repairmen. However, the FAA notes that a repair 
station must have an appropriate number of repairmen for the work to be 
performed under its certificate and ratings. In addition, this final 
rule does not contain the proposal regarding subsequent evaluation of a 
repairman.

Section 145.161 (Proposed Sec. 145.157) Records of Management, 
Supervisory, and Inspection Personnel

    Summary of Proposal/Issue: The FAA based this proposed section on 
current Sec. 145.43. The FAA proposal continued to require a repair 
station to retain a roster of supervisory (including management) 
personnel and inspection personnel. In paragraph (a)(3) the FAA 
proposed to establish a new requirement for a repair station to retain 
a roster of those certificated personnel authorized to sign a 
maintenance release for approval for return to service of an altered or 
repaired article.
    The proposal included current requirements relating to the 
retention of information indicating compliance with experience 
requirements. The FAA proposed to modify the current rule by requiring 
that these rosters be kept current.
    Comments: Commenters suggested revisions to the proposed language, 
including elimination of the term ``chief inspector.'' A few commenters 
requested that the FAA define the term ``technical supervisors'' as 
used in paragraph (a)(1). Some commenters opposed the requirement that 
repair stations must prepare a summary of past employment history and 
total years of experience for individuals listed on the rosters. 
Commenters stated that the only appropriate information to include in 
the summary is the individual's title, scope of present assignment, and 
FAA certificate number. Commenters also stated that the rule should 
accommodate temporary assignments without requiring updated rosters.
    FAA Response: In response to a request to define ``technical 
supervisors'' as used in proposed paragraph (a)(1), the FAA has revised 
that paragraph to state ``supervisors who oversee maintenance 
functions.'' In addition, the FAA has deleted the term ``chief 
inspector'' from paragraph (a)(2). The FAA has determined that the 
summary required in paragraph (a)(4) is necessary to assist the agency 
in determining that an individual is qualified for the position held at 
the repair station. In addition, the FAA notes that the summary is a 
current requirement under Sec. 145.43. The FAA has revised proposed 
paragraph (a)(4)(iii), which would have required that the summary 
include all past employment records with the names of employers and 
periods of employment by month and year. The final rule requires only 
past relevant employment with the names of employers and period of 
employment.
    The FAA has added language in paragraph (b) to provide repair 
stations with 5 business days for updating rosters. This revision 
should preclude the necessity for daily revisions of rosters.

Section 145.163 (Proposed Sec. 145.159) Training Requirements

    Summary of Proposal/Issue: The FAA proposed to require each 
certificated repair station to establish a training program approved by 
the Administrator that consists of initial and recurrent training for 
employees assigned to perform maintenance, preventive maintenance, or 
alteration functions. The FAA proposed to require that records of 
accomplished training be documented by the repair station in a form 
acceptable to the Administrator and that these records be retained for 
the duration of each individual's employment.
    Comments: Commenters voiced various criticisms about the proposed 
training requirements. Many commenters complained that the proposal 
does not contain specific requirements and stated that the FAA should 
issue advisory material for comment before publication of the final 
rule. Commenters wanted to know the type of training required, the 
frequency of training, and what is required to quantify and qualify on-
the-job training. Some commenters stated that a ``one size fits all'' 
rule will not work for small repair stations. One association stated 
that the hiring practices of small repair stations or the performance 
of limited and specifically defined, repetitive work does not require 
continuous training and retraining. Many commenters stated that the 
training program should be acceptable to the Administrator rather than 
approved by the Administrator. The NTSB noted that the minimum 
standards for the recurrent training of pilots, flight attendants, and 
ground personnel involved in deicing and currency of job-specific 
skills is no less important for mechanics. The NTSB stated that the 
final rule should specify a reasonable quantity of recurrent training. 
An association representing European air carriers stated that the FAA 
should not require training programs for foreign repair stations that 
are significantly different than those used by the JAA. Unions and an

[[Page 41104]]

association expressed support for a training requirement for repair 
stations.
    With regard to the recordkeeping requirement, commenters stated 
that the FAA should specify which items to include in the records 
rather than state that the records should be in a format acceptable to 
the Administrator. Commenters also recommended that training records be 
maintained for 2 years only.
    FAA Response: The FAA has determined that adoption of a training 
program for repair station employees who perform maintenance, 
preventive maintenance, or alterations would enhance aviation safety by 
helping to ensure that those employees are fully capable of performing 
the work. It also would promote a level of safety equivalent to that of 
maintenance performed under parts 121 or part 135.
    The FAA disagrees with commenters who contend that training 
programs should be accepted rather than approved. To ensure that the 
right type of program and amount of training is tailored to each 
individual repair station, the FAA has elected to approve training 
programs rather than accept them. The FAA recognizes that the training 
programs may vary depending on the size of the repair station and the 
nature of the work performed. Therefore, the FAA is not prescribing 
specific training requirements but will approve individual training 
programs submitted by repair stations. Before the effective date of the 
final rule, the FAA will issue advisory material regarding the required 
training program. The FAA does not anticipate