Under proposed Sec.  91.326(a)(2), the persons listed in Sec.
91.326(a) who wish to receive or provide training in one of these
aircraft may do so without obtaining deviation authority, as long as
they do not broadly offer or advertise services in those aircraft to
the public. To highlight this distinction, the FAA notes that when an
owner seeks to receive training in their own aircraft, there is no need
for the owner to advertise or broadly offer any services to receive
that flight training. An aircraft owner would not need to advertise
their aircraft as available for flight training.

Rather, the owner would simply hire a flight instructor of their
choosing.
    This prohibition on offering the aircraft to the public forecloses
flights devoid of instructional or educational value and conducted
solely for entertainment or leisure under the guise of flight training.
The FAA underscores the importance of pilots understanding and being
familiar with the particular systems, procedures, operating
characteristics, and limitations of the aircraft they will regularly
operate. Data has shown that this increased understanding and
familiarity results in fewer accidents over time.\75\
---------------------------------------------------------------------------

    \75\ NTSB Safety Recommendation, A-12-28 through -39 (Jul. 12,
2012), available online: https://www.ntsb.gov/safety/safety-recs/recletters/A-12-028-039.pdf.
---------------------------------------------------------------------------

    Importantly, advertising or broadly offering an aircraft for flight
training can take many forms. In general, an entity or individual
advertises its services when it communicates to the public, or a
segment of the public, that flight training services are
indiscriminately available to any person with whom contact is made.
Currently, advertisers can promote material in more than just
traditional print sources such as magazines or newspapers. Advancing
technology allows individuals to reach consumers through electronic
communications and internet postings. Moreover, even if an individual
limits efforts to solicit flight training services to a class or
segment of the general public, it may still be considered ``broadly
offering'' its services. For example, if a person posts advertisements
only on select social media websites, or within particular groups on a
social media website or other internet platform, it may still be deemed
to ``broadly offer'' its services if the advertisements express a
willingness to provide flight training to all users within a class or
segment of those platforms. The FAA also considers establishing a
reputation of a willingness to perform a service broadly as contrary to
the prohibition in the legislation and the proposed rule.\76\ The FAA
emphasizes that any leasing scenario remains subject to the prohibition
on offering and advertising the aircraft for use. In any case, no
person may broadly offer the aircraft or profit from the use of the
aircraft and any receipt of compensation is limited to the expenses
discussed in the next section.
---------------------------------------------------------------------------

    \76\ AC 61-142, Sharing Aircraft Operating Expenses in
Accordance with 14 CFR 61.113(c), (2020), states,). ``Physically
holding out, without advertising, where the pilot gains a reputation
of serving all, is sufficient to constitute an offer to carry all
customers. There are many means by which physically holding out can
take place, e.g., personal solicitation and course of conduct. A
pilot's course of conduct can be sufficient to find that there has
been a holding out of service to the public because the course of
conduct can indicate a willingness to serve all who apply for
service. The actions or conduct used to develop the reputation would
be considered to be holding out.''
---------------------------------------------------------------------------

    In support of this prohibition on advertising, the FAA maintains
that when aviation operations are offered broadly to the public for
compensation, the public expects, and the FAA demands, a higher level
of safety. This expectation is evidenced by the requirements that
charter operators comply with part 135, scheduled airlines comply with
part 121, and flight schools utilize standard category aircraft for
flight training unless they possess a LODA. Limited category,
experimental, and primary category aircraft do not meet the same
certification requirements as standard category aircraft. Therefore,
additional restrictions are necessary to maintain the public's
expectation of safety.
    theirWhile the FAA places great value on the need for pilots to
understand and be familiar with the particular systems, procedures,
operating characteristics and limitations of the aircraft they will
operate, the FAA must also ensure public safety for services broadly
offered. Paragraph (a)(2) seeks to balance these interests by imposing
restrictions for flight training only outside the scope of personal
use. Beyond this, flight training offered to the public is broadly
available in standard category aircraft or, if deemed necessary, in a
limited category or experimental aircraft in accordance with a LODA
under proposed Sec.  91.326(b), discussed later in this preamble.
3. Compensation for Use of the Aircraft (Sec.  91.326(a)(3))
    To accomplish flight training, testing, and checking in an
experimental aircraft without a LODA, section 5604(3) of the 2023 NDAA
limits the type of compensation that may be received for the use of the
aircraft. Proposed Sec.  91.326(b) would codify this provision and
extend it to limited category, experimental, or primary category
aircraft. Under the proposed rule (and consistent with the legislative
provision for experimental aircraft), no person would be permitted to
receive compensation for use of the aircraft for a specific flight
during which flight training, checking, or testing was accomplished,
other than expenses for owning, operating, and maintaining the
aircraft. Compensation for the use of the aircraft that yields a profit
for the operator is prohibited under the legislation and the proposed
rule. The FAA makes this distinction to foreclose the use of aircraft
holding certain special airworthiness certificates for profit without
the safety mitigations provided by a LODA.
    The FAA recognizes that operating an aircraft naturally incurs
expenses, such as ongoing maintenance of the aircraft, fuel used during
a flight, and other expenses associated with aircraft ownership. The
FAA notes that the legislation ties the compensation to the costs
associated with the specific flight.
    When money is exchanged for transportation, the public expects, and
the FAA demands, a higher level of safety for the flying public.\77\
Accordingly, operations for compensation involving aircraft holding
special airworthiness certificates require additional regulations to
ensure public safety. The use of standard category aircraft remains
broadly available for those members of the public seeking to receive
flight training.
---------------------------------------------------------------------------

    \77\ See legal interpretation for General Aviation Manufacturers
Association, addressed to Mr. Bunce, dated Nov. 19, 2008.
---------------------------------------------------------------------------

    Consistent with these principles, a person may operate for the
purpose of flight training in a limited category, experimental, or
primary category aircraft without a LODA only when no compensation is
exchanged for the use of the aircraft, other than expenses for owning,
operating, and maintaining the aircraft.\78\ Operations involving
compensation for the use of the aircraft that yields a profit will
continue to require a LODA.
---------------------------------------------------------------------------

    \78\ See proposed Sec.  91.326(a)(1) which specifies that the
authorized instructor cannot provide both the training and the
aircraft without a LODA.
---------------------------------------------------------------------------

E. LODA Framework (Sec.  91.326(b) and (c))

    While the FAA maintains that, in general, limited category,
experimental, and primary category aircraft should not be broadly
offered for flight training, checking, and testing, the FAA finds that
there is certain specialized training that may be effectively and
safely accomplished in these aircraft under certain conditions.
Currently, persons seeking to offer this type of flight training for
compensation or hire in limited and primary category aircraft are
required to obtain a grant of exemption.\79\ By contrast, persons
seeking to offer this type of flight training in experimental aircraft
may apply for a LODA under Sec.  91.319(h).
---------------------------------------------------------------------------

    \79\ See Federal Register Docket FAA-2013-0506 and FAA-2017-0942
for examples of grants of exemption from Sec.  91.315 for the
purpose of flight training in limited category aircraft issued to
Delaware Aviation Museum Foundation and Stallion 51 Corporation,
respectively.
---------------------------------------------------------------------------

    In Sec.  91.326(b), the FAA proposes that any person who wants to
conduct flight

training, checking, or testing in limited category and experimental
aircraft \80\ outside the restrictions and limitations of proposed
Sec.  91.326(a) may apply for deviation authority. Flight training,
checking, or testing operations that would require a LODA include, but
are not limited to, receiving compensation for flight training while
also receiving compensation for the use of the aircraft and/or
advertising or broadly offering the use of an aircraft for flight
training, checking, or testing. For example, under the proposed
framework, a person who owns an aircraft holding an experimental or
limited category special airworthiness certificate, such as a North
American B-25 or Curtiss P-40, would be required to hold a LODA to
offer transition or proficiency training to the public.
---------------------------------------------------------------------------

    \80\ The FAA notes that certain primary category aircraft would
be excluded from Sec.  91.326(c) because proposed Sec.  91.325(c)
would make a LODA unnecessary, as that rule would explicitly enable
flight training, checking, and testing without the need for
deviation authority.
---------------------------------------------------------------------------

    The FAA first introduced deviation authority in a 2004 final rule
\81\ to allow for training that was, at that time, only available
through exemption. Pursuant to Sec.  91.319(a)(2), the 2004 final rule
prohibited carrying persons or property in experimental aircraft for
compensation or hire. As flight training is considered to be carrying
persons for compensation or hire, the deviation authority offered in
the 2004 final rule allowed for issuance of a LODA in lieu of an
exemption for flight training in experimental aircraft.
---------------------------------------------------------------------------

    \81\ Certification of Aircraft and Airmen for the Operation of
Light-Sport Aircraft, 69 FR 44771 (Jul. 27, 2004). In the final
rule, the FAA amended Sec.  91.319 by adding Sec.  91.319(h) to
allow deviation authority from the provisions of Sec.  91.319(a) for
the purpose of conducting flight training.
---------------------------------------------------------------------------

    NTSB Safety Recommendation A-12-035 advises the FAA to develop and
publish an advisory circular, or similar guidance, for the issuance of
a Letter of Deviation Authority to conduct flight instruction in an
experimental aircraft, to include sample documentation and sample
training materials.\82\ This recommendation was in response to the
NTSB's finding that providing pilots of experimental amateur-built
aircraft with better access to training would enhance flight safety. In
response to NTSB Safety Recommendation A-12-035, the FAA is proposing
LODA framework to provide the FAA with an opportunity to evaluate the
operation and impose any additional pilot qualifications and
maintenance requirements necessary for safety when offering services to
the public. Although Sec.  91.319(h) authorizes the FAA to issue
deviation authority for the purpose of flight training in experimental
aircraft, the FAA also recognizes that, in certain circumstances, there
is value in flight training in limited category aircraft. For that
reason, the FAA is proposing to remove the LODA provision in Sec.
91.319(h) and incorporate, expand, and clarify the LODA framework in
proposed Sec.  91.326(b) to apply to both limited category and
experimental aircraft. The FAA has drafted an advisory circular
describing the LODA application process and identifying the factors
that the FAA will consider in determining whether a LODA should be
issued. The advisory circular is available in the docket for this
rulemaking for public comment concurrently with publication of this
NPRM. In a 2012 safety recommendation report referencing
recommendations A-12-28 through -39, the NTSB concluded that
experimental amateur-built aircraft accidents involving loss of
aircraft control could be reduced if more pilots received transition
training.\83\ Since promulgation of the 2004 final rule, FAA and
industry research indicates that the training conducted under Sec.
91.319(h) deviation authority continues to reduce accidents in
experimental aircraft when conducted in accordance with the conditions
and limitations of that deviation authority. Therefore, expanding this
deviation authority to permit some flight training, checking, and
testing in limited category aircraft is also likely to increase safety
and reduce accidents in those aircraft because it would provide a
greater incentive to operators of limited category aircraft to seek out
and complete such training.
---------------------------------------------------------------------------

    \82\ NTSB Safety Recommendation, A-12-28 through -39 (Jul. 12,
2012), available online: https://www.ntsb.gov/safety/safety-recs/recletters/A-12-028-039.pdf.
    \83\ NTSB Safety Recommendation, A-12-28 through -39 (Jul. 12,
2012), available online: https://www.ntsb.gov/safety/safety-recs/recletters/A-12-028-039.pdf.
---------------------------------------------------------------------------

    The FAA anticipates that using a single rule to cover deviation
authority for limited category and experimental aircraft will promote a
streamlined process and relieve the burden on the public to apply for
an exemption for limited category aircraft. Additionally, incorporating
the LODA framework from Sec.  91.319 into proposed Sec.  91.326(b)
would make the application process consistent for limited category and
experimental aircraft. The proposed Sec.  91.326(b) framework would
apply to owners, operators, and training providers who broadly offer,
or receive compensation for, the use of certain aircraft for
specialized flight training, checking, and testing.
    Flight training, checking, or testing in limited category aircraft
are currently only available by grant of exemption from the
regulations. The FAA finds this burdensome and labor intensive not only
for the agency but also the persons offering this specialized training.
Since the 2004 final rule, Sec.  91.319 has provided this training
through deviation authority, while maintaining an equivalent level of
safety. As a result, the FAA concludes that implementing the LODA
framework on a broader scale will similarly support public safety,
reduce administrative costs and burdens, and increase operator
efficiency.
    In further support of codifying a consolidated LODA framework in
Sec.  91.326(b), the FAA emphasizes the safe and successful use of
LODAs under Sec.  91.319. Under Sec.  91.319(h), the FAA has
historically granted LODAs for specialized training in experimental
aircraft that could not otherwise be obtained in aircraft holding
standard airworthiness certificates, e.g., model-specific training and
jet upset recovery training. These LODAs have been issued to operators
who demonstrate that their flight instructors, trainees, and aircraft
meet specific additional requirements above those generally required to
operate experimental aircraft. As currently used under Sec.  91.319,
LODAs increase public safety because they support minimum pilot
qualifications, structured training curricula, and additional aircraft
maintenance inspection requirements. Issuance of a LODA enables the FAA
to provide oversight of training and maintenance of the aircraft and
place certain restrictions on those who participate. The FAA finds it
necessary to place these restrictions within the LODA to ensure safety
to the public paying for training in these aircraft who may not be
familiar with aircraft holding special airworthiness certificates.
Evaluation of the training program ensures a structured and complete
training syllabus. The operator and participant must comply with
certain conditions and limitations issued with a LODA. Each operator
must use aircraft-specific flight and ground training curricula. The
operator must keep a record of the training given for a period of three
years. Persons providing training, checking, and testing must be
authorized under part 61 or part 183, as applicable, for the specific
operation and must be qualified in the aircraft to be used. These
parameters and oversight requirements ensure the safety of the

public during these activities and operations.
1. Granting, Amending, and Cancelling a LODA (Sec.  91.326(b)(1) and
(2))
    The FAA proposes to add Sec.  91.326(b)(1) and (2) to prescribe the
manner in which the FAA may issue, cancel, and amend LODAs.
Particularly, Sec.  91.326(b)(1) clarifies that operators would be
granted relief from Sec. Sec.  91.315 or 91.319(a) through a LODA. In
offering this deviation authority in the form of a letter, the FAA
intends to model the proposed deviation authority after the current
deviation authority provided in Sec.  91.319(h) that would be
superseded by proposed Sec.  91.326(b) if adopted.
    In addition, the FAA proposes to add Sec.  91.326(b)(2) to enable
the FAA to cancel or amend a LODA if it determines that the deviation
holder has failed to comply with the conditions and limitations or at
any time if the Administrator determines that the deviation is no
longer necessary or in the interest of safety. For example, the FAA
would be able to cancel a LODA for non-compliance with the terms and
conditions of the LODA. Likewise, a LODA could be cancelled when a
significant number of identical aircraft holding standard airworthiness
certificates become available. Once an aircraft is certificated in the
standard category and significant numbers are available, the need for
the LODA may be unnecessary.
    Under proposed Sec.  91.326(b)(2), a LODA could also be amended for
safety concerns. For example, the FAA may, when necessary, revise the
conditions and limitations or require corrective action to adequately
mitigate safety concerns and risk factors as they become known. In
conclusion, proposed Sec.  91.326(b)(2) affords the FAA flexibility to
modify or cancel the LODA, as needed, based on changing circumstances.
2. Requirements for a LODA (Sec.  91.326(b)(3))
    In Sec.  91.326(b)(3), the FAA proposes to codify a timeline for
operators to submit LODA applications, the form and manner requirements
for submission, and the information that the applicant should provide.
As proposed, an applicant must submit the request for a LODA in a form
and manner acceptable to the Administrator. As set forth in the draft
LODA AC, Application and Issuance Process for a Letter of Deviation
Authority Issued in Accordance with Part 91, Sec.  91.326, the form and
manner of an application submission may include email, fax, regular
mail, or in-person delivery. Consistent with the current application
process under Sec.  91.319(h), applicants may apply for a LODA by
contacting the Flight Standards District Office (FSDO) nearest their
primary place of business. FSDO personnel can provide the applicant
with specific instructions on how to present the LODA request to that
FSDO and provide the applicant with reference material and supporting
information.\84\ A draft of the advisory circular has been published
for comment concurrently with this NPRM and is available in the
rulemaking docket.
---------------------------------------------------------------------------

    \84\ FAA Order 8900.1, Vol. 3, Chpt. 11, Sec. 1, Use of Aircraft
Issued Experimental Certificates in Flight Training for Compensation
or Hire, provides information about the issuance of a LODA for
conducting flight training under Sec.  91.319(h). Additionally, the
FAA is producing a new advisory circular that would provide
information, guidance, and recommendations on the application and
issuance process for obtaining a LODA to operate a limited category,
primary category, or experimental aircraft for compensation or hire
while providing flight training, checking, and testing.
---------------------------------------------------------------------------

    The proposed regulation would also require that the application
package be submitted at least 60 days before the date of intended
operations. The 60-day requirement is proposed to allow the
Administrator adequate time to review stakeholder applications and
supporting documents. The current Sec.  91.319(h) LODA process has
demonstrated that this is a reasonable time allowance. The FAA has
determined a need for a 60-day review period to ensure the
effectiveness of the LODA and the proper conditions specified within
each LODA. The FAA notes that not all LODA training syllabi or
justifications will be identical. Therefore, the 60-day review period
is intended to provide sufficient time to assess each unique
application on a case-by-case basis.\85\
---------------------------------------------------------------------------

    \85\ For those operators who currently hold an exemption or a
LODA, section IV(E)(6) of this NPRM explains how operators would
transition to a LODA issued under the proposed rule.
---------------------------------------------------------------------------

    Proposed Sec.  91.326(b)(3)(i) through (ix) enumerate the items an
applicant would be required to include in their request for deviation
authority. The FAA proposes to require this information from the
applicant to evaluate the application to determine whether granting the
request for a LODA would be in the interest of safety. Information
required by this proposed section includes, for example, in Sec.
91.326(b)(3)(ii), the name and contact information of the individual
with ultimate responsibility for operations authorized under the LODA.
Likewise, applicants must include a detailed training program
demonstrating that the proposed activities would meet intended training
objectives. The training program description may include a training
overview, a syllabus, minimum instructor qualifications, prerequisites
for persons receiving training, a description of teaching aids, special
equipment, simulators, and flight training devices, as applicable, and
a method for recordkeeping.\86\ The FAA proposes to request this
training program information from applicants to ensure that, if
granted, the requested LODA would solely be used for appropriate,
limited training purposes, which would in turn support safe operation
of the aircraft.
---------------------------------------------------------------------------

    \86\ Additional information describing the items applicants are
encouraged to submit for a complete LODA application is provided in
the LODA advisory circular, which has been placed in the docket for
this rulemaking.
---------------------------------------------------------------------------

    Additionally, the FAA proposes Sec.  91.326(b)(3)(viii), which
specifies additional information required to be submitted by LODA
applicants when formation and aerobatic training, or training leading
to the issuance of an endorsement is requested. The information
required to be submitted for this purpose would describe a process by
which a LODA holder will identify whether a trainee has a specific need
for that training. The FAA is proposing to require LODA applicants to
provide additional reasoning for conducting formation or aerobatic
training, or training leading to the issuance of an endorsement because
those types of training, generally, can be conducted in standard
category aircraft. Because the FAA encourages training to be conducted
in the aircraft which a trainee would most often operate, the
additional explanation would enable the agency to determine whether
granting the applicant's request for a LODA is necessary in the
interest of safety. Persons with a specific need include, for example,
aircraft builders, purchasers, owners, test pilots, and qualified
additional pilots under AC 90-116. The aircraft used for training must
have similar handling qualities and flight characteristics to the
aircraft being built or flown by the trainee to be eligible. These
persons will have regular access to substantially similar aircraft and
would benefit from the additional training, as training can expand
pilot skills that are transferrable to the aircraft they will regularly
fly. Persons without a specific need can receive this training in an
aircraft holding a standard airworthiness certificate.
3. Limitations in the LODA (Sec.  91.326(b)(4))
    Currently, under Sec.  91.319(i), the Administrator may prescribe
additional limitations that the Administrator finds

necessary for aircraft holding experimental airworthiness certificates.
The conditions and limitations the FAA places in LODAs under the
discretion provided in Sec.  91.319(i) allow the FAA to authorize
appropriate training activity not otherwise permitted by regulation
while ensuring the safety of the NAS and persons and property on the
ground. Historically, the FAA has included a list of general conditions
and limitations related to aircraft inspection and maintenance
requirements, airman qualifications, operating limitations, and
training requirements in all LODAs authorizing flight training. For
example, current LODAs contain a limitation that requires the operator
to keep a record of the training given for a period of three years.
This condition ensures that the FAA may conduct appropriate safety
oversight of operations conducted under the LODA. Likewise, given the
unique risks posed by aircraft with ejection seats, LODAs have
contained a requirement that trainees must complete an acceptable
course of ejection seat training before training in an aircraft with an
ejection seat. The FAA also includes conditions and limitations for
trainees and flight instructors with regard to minimum qualifications
such as certificate, ratings, and endorsements even when the trainee or
flight instructor is not acting as PIC of the flight. LODA holders must
comply with the conditions and limitations imposed under Sec.  91.319
while conducting activity under the LODA unless the FAA provides relief
from the conditions and limitations in the LODA.
    The FAA proposes to add a provision similar to Sec.  91.319(i) in
proposed Sec.  91.326(b)(4) to allow the Administrator to continue to
prescribe additional conditions and limitations in LODAs for
experimental aircraft and extend that allowance to LODAs issued for
training, testing, and checking in limited category aircraft when
necessary for safety. The FAA would continue to impose these safety
conditions and limitations on future training, checking, and testing
conducted under LODAs issued under proposed Sec.  91.326(b). The FAA
reiterates that, when training, checking, and testing can be
successfully accomplished in a standard category aircraft, a LODA to
conduct such training in aircraft with special airworthiness
certificates is not appropriate. Where training, checking, and testing
is allowed in experimental and limited category aircraft, the FAA must
have a means to ensure that safety is maintained given the nature of
the aircraft used. The full list of conditions and limitations is
further described in the LODA Advisory Circular (AC), Table 4,
``Additional Limitations,'' which has been placed in the docket for
this rulemaking. The FAA is proposing slight modifications to the
standard conditions and limitations imposed under Sec.  91.319(i) and
specifically requests comment on all of the conditions and limitations
set forth in Table 4 of the AC.
4. Persons Permitted on Board During Operations Under a LODA (Sec.
91.326(b)(5))
    The FAA proposes to add Sec.  91.326(b)(5) to limit the persons
permitted to be on board an aircraft during operations under a LODA.
The airworthiness certification standards for aircraft that hold
special airworthiness certificates do not rise to the level of
demonstrated safety and reliability of those holding standard
airworthiness certificates. Besides the instructor, designated examiner
and the person receiving the training, checking, or testing, only
persons deemed essential to the safe operation of the aircraft would be
permitted to be carried on board the aircraft. Notably, a pilot who
holds a temporary letter of authorization (LOA) to act as PIC in an
experimental aircraft who also holds a flight instructor certificate is
generally not authorized to conduct flight training under a LODA.
Temporary LOAs are issued to a pilot to act as PIC in unique, highly
specific circumstances, such as in the case of a first flight of a new
or first-of-a-kind aircraft. Temporary LOAs are not issued to flight
instructors for the purpose of flight training under a LODA.
    In addition to authorized instructors, designated examiners, and
those receiving the flight training or being checked or tested, the FAA
proposes to permit persons essential for the safe operation of the
aircraft to be on board during operations under a LODA. The FAA notes
that, to be conducted effectively, flight training, checking, and
testing operations do not require persons besides authorized flight
instructors, designated examiners, those receiving flight training or
being checked or tested, and other persons essential for the safe
operation of the aircraft to be on board. The addition of persons not
directly related to flight training, testing, checking, or operation of
the aircraft may create unnecessary distraction.
    However, some aircraft holding special airworthiness certificates
may have unique characteristics or design features that necessitate
additional persons for safety. For example, operators of certain
vintage, multi-engine aircraft, like the North American B-25 or Boeing
B-17, choose to utilize persons to perform certain functions related to
aircraft safety. These functions may include observing engines to
monitor for smoke/malfunction, observing engine instruments to monitor
for anomalies, or operation of mechanical systems that may not be in
easy reach of the flightcrew. Importantly, the determination of whether
a person is essential for safety would be determined based on several
factors. The FAA would consider whether these persons are trained and
designated by the operator for these functions and are not members of
the general public. The FAA would be unlikely to consider persons
unaffiliated with the operator and designated to perform essential
functions ``on the spot'' to be genuinely performing a duty essential
to safety. This precludes an operator from assigning ``essential
functions'' to persons who do not normally participate in the operation
of the aircraft. For example, a non-pilot friend in the back seat given
a nominal task or observing training could be construed as a ride for
hire which is not contemplated by the proposed regulation. The FAA will
also consider whether the operator routinely fills a particular
position to determine if it is essential. For example, if an operator
routinely utilizes a crew complement of two pilots, but one day decides
to put a third person on board to ``monitor engines'', the
Administrator would likely not consider that additional person to be
essential. However, if an operator routinely utilizes a trained crew
chief who is present because there is emergency mechanical equipment
beyond the reach of the flightcrew, like an emergency gear extension
crank, the Administrator may consider that person to be essential for
safety. Likewise, additional person(s) would not be allowed to be
present solely to receive transportation or for recreational purposes.
    The specification of the persons permitted to be carried on board
the aircraft in the proposed Sec.  91.326(b)(5) is meant to provide
clarity to those applying for a LODA under Sec.  91.326. In this
regard, the list of recognized persons is exclusive. Outside of the
personnel delineated in the proposed Sec.  91.326(b)(5), the FAA does
not contemplate the additional carriage of persons on board the
aircraft even with the issuance of a LODA. Such activity, therefore,
would remain prohibited under this proposed rule.

5. Types of Training (Sec.  91.326(b)(6))
    The FAA proposes to limit the types of training, testing, and
checking that may be authorized under the proposed deviation authority.
Currently, LODAs are issued for certain specialized types of
experimental aircraft training. Aircraft holding special airworthiness
certificates are not designed, built, or maintained to the same
standard as those holding standard airworthiness certificates.
Therefore, the FAA proposes to limit the availability of the use of
experimental and limited category aircraft in flight training offered
to the public by limiting the types of training available.
    The types of training currently available under a LODA are limited
in nature and generally contemplate only specialized training that
cannot be accomplished in aircraft holding standard airworthiness
certificates. For example, private pilot certification training and
testing is not available for LODA training, as this can be accomplished
in aircraft holding standard airworthiness certificates. Conversely,
jet upset recovery training is available for LODA training because
there are no standard category jet aircraft with limitations that allow
for aerobatic flight.
    Except in specific circumstances, LODAs should not be issued to
permit flight training toward the issuance of a pilot certificate,
rating, or operating privilege that can be obtained through training
and testing in an aircraft with a standard category airworthiness
certificate. For example, syllabi developed solely for aerobatic
training or flight training that leads to the issuance of an
endorsement (e.g., tailwheel or pressurized aircraft, or a complex or
high performance airplane) would not be considered appropriate for
issuance of a LODA. In addition, no demonstration or discovery flights
would be authorized. Demonstration flights, discovery flights, sales
demonstrations, introductory flights, experiential flights, and other
flights not related to the flight training syllabus are not authorized
under a LODA.
    On the contrary, a LODA may be requested to facilitate specialized
training necessary to gain skills and abilities to safely operate
specific aircraft. In addition, a LODA may be used to receive training
that cannot otherwise be conducted in aircraft holding a standard
airworthiness certificate. For example, an applicant may utilize a LODA
to participate in model-specific transition training. Similarly, an
applicant may request a LODA to conduct training and testing that leads
to the issuance of a specific experimental aircraft authorization,
limited category type rating, rotorcraft gyroplane training at all
levels, a sport pilot certificate, or sport pilot operating privilege.
    The FAA includes a description of each type of training
contemplated under this section in the draft LODA AC placed in the
docket to this rulemaking. The FAA welcomes public comment on the types
of training authorized under a LODA and the accompanying safety
rationale in response to publication of the draft LODA AC.
    The FAA notes that LODAs are intended to bolster specialized
training in aircraft holding certain special airworthiness certificates
that cannot otherwise be accomplished in aircraft holding standard
airworthiness certificates. In support of this intent, as noted, LODAs
will not be issued exclusively to permit aerobatic or formation
training or to permit training for the sole purpose of issuance of an
endorsement. However, there are certain circumstances which may warrant
aerobatic training, formation training, or issuance of an endorsement
as part of a broader training program. This type of training will only
be available to trainees who have a specific need to receive such
training. The AC published concurrently with this NPRM provides greater
detail on when a person may be considered to have a ``specific need''
to receive this type of training, and the other corresponding
requirements for airmen certification and flight characteristics.
6. Status of Current LODAs (Sec.  91.326(c))
    The FAA proposes to add Sec.  91.326(c) to provide clarity to those
who hold a LODA issued under Sec.  91.319(h) at the time of publication
of the final rule if the proposal is adopted. In Sec.  91.326(c)(1) and
(2), the FAA proposes that any person who holds a LODA which is still
active as of the date of the final rule (should this proposal be
adopted) would be permitted to continue to operate under that LODA
subject to its terms and conditions for 24 months after the effective
date of the final rule. This proposed language would ensure that LODA
holders continue to comply with the conditions and limitations under
which their LODA was issued between the publication of a final rule and
the termination of their LODAs granted under Sec.  91.319(h). The FAA
proposes to permit Sec.  91.319(h) LODA holders to continue operating
under those LODAs for 24 months after the effective date of a final
rule because it would ensure those LODA holders have adequate time to
apply for a new LODA under the Sec.  91.326(b) framework. In Sec.
91.326(c)(3), the FAA proposes to add that any existing LODAs issued
under Sec.  91.319(h) may be cancelled or amended at any time, as is
currently provided for under Sec.  91.319(h). Permitting those existing
LODAs to be cancelled or amended at any time would enable the FAA to
ensure the continuing safety of operations permitted under the existing
LODAs. Finally, in Sec.  91.326(c)(4), the FAA proposes to terminate
all preexisting LODAs issued under Sec.  91.319(h) 24 months after the
effective date of a final rule. Current exemption holders would instead
apply for a LODA under proposed Sec.  91.326(b). Some operators have
been granted exemptions in limited category aircraft for the purpose of
offering flight training to the public. Except for exemptions issued
for Living History Flight Experiences (LHFE), exemptions from Sec.
91.315 issued for the purpose of flight training in limited category
aircraft will not be renewed or extended. LHFE exemptions are granted
for the purpose of providing flight experiences in certain
historically-significant aircraft. These LHFE exemptions will be
unaffected by this proposed rulemaking.
    In anticipation of the initial volume of applications, the FAA
encourages applicants to submit their LODA applications at least 180
days prior to the 24-month expiration date. Although present LODA
holders are not guaranteed deviation authority under this new
provision, this 180 days would help current LODA holders ensure that
there is no gap in LODA coverage between their existing LODA
terminating and their new LODA under Sec.  91.326(b), should it be
issued. In addition, the FAA notes that currently, LODAs are no longer
required for owners and operators of experimental aircraft who comply
with section 5604 of the 2023 NDAA (proposed to be codified in Sec.
91.326(a)).

V. Regulatory Notices and Analyses

    Federal agencies consider impacts of regulatory actions under a
variety of executive orders and other requirements. First, Executive
Order 12866 and Executive Order 13563, as amended by Executive Order
14094 (``Modernizing Regulatory Review''), direct that each Federal
agency shall propose or adopt a regulation only upon a reasoned
determination that the benefits of the intended regulation justify the
costs. Second, the Regulatory Flexibility Act of 1980 (Pub. L. 96-354)
requires agencies to analyze the economic impact of regulatory changes

on small entities. Third, the Trade Agreements Act (Pub. L. 96-39)
prohibits agencies from setting standards that create unnecessary
obstacles to the foreign commerce of the United States. Fourth, the
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires agencies
to prepare a written assessment of the costs, benefits and other
effects of proposed or final rules that include a Federal mandate that
may result in the expenditure by State, local, and tribal governments,
in the aggregate, or by the private sector, of $100 million or more
(adjusted annually for inflation) in any one year. The current
threshold after adjustment for inflation is $165 million, using the
most current (2021) Implicit Price Deflator for the Gross Domestic
Product.
    In conducting these analyses, the FAA has determined that this
rule: (1) will result in benefits that justify costs; (2) is not a
``significant regulatory action'' as defined in section 3(f) of
Executive Order 12866; (3) is not ``significant'' as defined in DOT's
Regulatory Policy and Procedures; (4) will not have a significant
economic impact on a substantial number of small entities; (5) will not
create unnecessary obstacles to the foreign commerce of the United
States; and (6) will not impose an unfunded mandate on State, local, or
tribal governments, or on the private sector.

A. Regulatory Evaluation

1. Summary
    The FAA analyzed the costs and benefits for the provisions related
to PAO and the provisions related to training, testing and checking in
certain aircraft with special airworthiness certificates separately.
The provisions related to PAO impose no new costs and the FAA expects
the proposal will reduce the costs for pilots conducting PAO to
maintain their civil certificates and ratings.\87\ The provisions
related to training, testing and checking impose approximately $100,000
in total one-time costs (undiscounted) over a period of two years.
Roughly half of these costs stem from the requirement for the current
approximately 180 LODA holders who broadly offer certain aircraft with
special airworthiness certificates for training to reapply within two
years of the effective date of a final rule, if this proposed rule is
adopted. The other half of the costs include the time costs to the FAA
which must process these applications over the first two years.
However, the FAA expects the cost savings from the streamlined
regulatory framework, and the safety benefits from greater access to
specialized training in aircraft with certain special airworthiness
certificates, to exceed the initial costs. Overall, the FAA concluded
that this proposal would maintain and promote safety with minimal
impact on cost.
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    \87\ The FAA does not maintain counts of pilots who fly PAO for
federal, state and local governments and there is insufficient data
for the FAA to estimate the number of pilots affected by the PAO
proposal. See ``How to Become a Government Pilot'' in Flying
Magazine by James Wynbrandt, Dec.13, 2017. Available at: https://www.flyingmag.com/how-to-become-government-pilot/. Last accessed
Jul. 22, 2022.
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2. Logging Flight Time in Public Aircraft Operations
    The FAA requires pilots to log flight time used to meet training,
aeronautical experience and recent flight experience requirements for
civil pilot certificates and ratings.\88\ Currently, logging of flight
time in aircraft used for PAO is limited to official law enforcement
flights. The FAA proposes to extend logging pilot flight time in PAO
not only to forestry and fire protection services, as directed by
section 517 of the FAA Reauthorization Act of 2018, but also to any PAO
including operations involving national defense, intelligence missions,
search and rescue, aeronautical research and biological or geological
resource management. The FAA expects the rule to lower the cost for
pilots conducting PAO to maintain their civil certificates and ratings.
Although pilots conduct PAO outside of FAA civil certification and
certain safety oversight regulations, each government entity may
maintain its own certification system and requirements for pilots. For
many government entities, this includes adopting the same standards as
those codified in 14 CFR to ensure safety and comply with liability
insurance requirements.\89\ For example, the California Department of
Forestry and Fire Protection (CAL FIRE), a state agency that is the
largest firefighting air force in the world \90\ with over 50 aircraft,
requires its fixed-wing and helicopter pilots to maintain FAA
commercial pilot certificates, various FAA ratings, and recent flight
experience requirements.\91\ Additionally, the CAL FIRE 8300 manual
contains specific references and obligations for compliance with FAA
regulatory requirements applicable to civil operations.\92\
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    \88\ 14 CFR 61.51(a) does not require pilots to log all flight
time. Pilots are only required to record aeronautical experience
used to obtain civil certificates and ratings and meet recent flight
experience requirements.
    \89\ Wynbrandt, James W. ``How to Become an Airborne Law
Enforcement Pilot'' in Flying, Dec. 18, 2017. Accessed Feb. 8, 2022,
https://www.flyingmag.com/how-to-become-an-airborne-law-enforcement-
pilot/
#:~:text=Most%20state%20and%20municipal%20ALE,aren't%20hard%20to%20fi
nd.
    \90\ Joiner, Stephen. ``The Pilots Who Fight California's
Wildfires'' Smithsonian, August 2019. Accessed Feb. 15, 2022,
https://www.smithsonianmag.com/air-space-magazine/wildfire-wars-180972602/.
    \91\ CAL Fire Petition for Exemption 14 CFR 61.51(j), Nov. 23,
2020.
    \92\ CAL Fire Petition for Exemption 14 CFR 61.51(j), Nov. 23,
2020.
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    Allowing pilots to credit their PAO flight time would enable PAO
pilots to meet FAA flight experience and recency requirements in the
course of their duties, thereby avoiding costs required to accrue
flight time and recent experience in civil aircraft operations. These
avoided costs could include avoided travel time, flight time, fuel
costs, and costs for use of a civil aircraft. Additionally, the FAA
finds that recording PAO flight time will not impose additional costs
because PAO pilots already record their flight time to meet the safety
and insurance requirements of their employers. For this reason, the FAA
proposes to allow pilots to retroactively credit PAO flight time. The
FAA concludes that the proposal to allow pilots to record and credit
PAO flight time will not adversely affect safety, impose any additional
costs, or pose novel policy or legal issues.
3. Flight Training, Testing, or Checking for Compensation in Certain
Aircraft With Special Airworthiness Certificates
    Consistent with the 2023 NDAA, the proposal allows owners or
operators of experimental aircraft to receive training, testing, and
checking in their aircraft without a LODA, in certain circumstances.
The proposed rule would extend the provision to training, testing, and
checking in limited category and primary category aircraft.
Additionally, the proposal moves the current LODA process for
experimental aircraft in Sec.  91.319(h) to proposed Sec.  91.326(b)
and extends the LODA process to include limited category and
experimental light sport aircraft. The goal is to promote safety by
making it simpler for pilots to receive elective or specialized
training relevant to aircraft they regularly fly, while also ensuring
effective training and maintenance standards in certain aircraft with
special airworthiness certificates broadly offered for training,
checking or testing, for compensation.
    Overall, the FAA expects the training proposal to increase safety,
clarify and simplify regulatory requirements, reduce compliance costs
for operators, administrative costs for the FAA and

time and travel costs for pilots seeking elective or specialized
training, testing, or checking. The FAA evaluated costs and benefits
against the baseline established by the ``Notification of Policy for
Flight Training in Certain Aircraft,'' published in the Federal
Register July 12, 2021,\93\ as well as the recently passed 2023 NDAA,
and concluded the cost impacts are modest and the proposal poses no
novel legal or policy issues.
---------------------------------------------------------------------------

    \93\ 86 FR 36493 (Jul. 12, 2021), ``Notification of Policy for
Flight Training in Certain Aircraft.'' The FAA published this policy
statement to establish simplified procedures for owners and
operators of certain aircraft with special airworthiness
certificates to obtain prior approval from the FAA for training in
their own aircraft. The policy clarification also reaffirmed the
need for certain operators to obtain prior approval from the FAA in
the form of a LODA or exemption.
---------------------------------------------------------------------------

4. Cost Savings
    The FAA expects the proposal to generate cost-savings for owners or
operators of certain aircraft with special airworthiness certificates
who seek specialized training, testing, or checking in aircraft they
own or regularly operate. Under current rules, owners or operators of
limited and primary category aircraft must petition the FAA for an
exemption.\94\ The recently passed 2023 NDAA eliminated the LODA
requirement for owners and operators of experimental aircraft receiving
training in their own aircraft. The proposal in Sec.  91.326(a) would
codify the legislation with regard to LODAs for experimental aircraft
and eliminate the LODA requirement for owners and operators who receive
training, testing, or checking in their aircraft and pay compensation
for instruction. The elimination of the exemption requirements would
result in time savings for owners and operators who would no longer
need to apply for an exemption. Likewise, the proposal would reduce the
administrative costs at the FAA associated with evaluating and tracking
exemption petitions.
---------------------------------------------------------------------------

    \94\ Under 14 CFR 11.5, a petition for exemption is a request
from an individual or entity requesting relief from a current
regulation.
---------------------------------------------------------------------------

5. Costs and Cost Savings for Operations Broadly Offered or Advertised
    Under the proposed Sec.  91.326(b), if an operator of experimental
or limited category aircraft broadly offers or advertises flight
training, checking, and testing in these aircraft, the operator must
obtain prior approval from the FAA in the form of a LODA. To obtain a
LODA, the operator must submit an application to the FAA that includes
an aircraft-specific training program at least 60 days in advance of
training operations. Under the proposed change to Sec.  91.325,
operators of certain primary category aircraft will not require a LODA
and will no longer need to petition for an exemption to conduct
training, testing, or checking.
    Importantly, the proposed LODA requirements under Sec.  91.326(b)
are similar to the current LODA requirements under Sec.  91.319(h) for
operators of certain experimental aircraft who broadly offer their
aircraft for training, testing, or checking. The FAA also proposes to
terminate current training LODAs within two years of the effective date
of a final rule. However, to ensure that all operations in which an
aircraft with a special airworthiness certificate is ``held out'' for
training, testing, or checking comply with the proposed requirements,
holders of current exemptions and LODAs permitting these training
operations will need to apply for a LODA under the proposed Sec.
91.326(b). The FAA proposes that these exemption and LODA holders
reapply within two years of the effective date of the final rule.
    The FAA finds that the cost impacts of the LODA requirement for
training operations in experimental and limited category aircraft
``held out'' broadly for training will be small relative to the current
regulatory baseline. The costs and cost savings will vary across groups
affected by the regulation. Therefore, the FAA evaluated the cost
impacts separately for each of the identifiable interest groups
expected to realize costs or savings.
    Experimental aircraft operators who currently hold LODAs under
Sec.  91.319(h) to offer their aircraft broadly for training will incur
the cost of reapplying for their LODA within two years of the effective
date of a final rule. The FAA estimates the reapplication requirement
would generate approximately $100,000 in total undiscounted costs
within the first two years following the effective date of a final
rule. This estimate includes the time costs to the approximately 180
current LODA holders \95\ who reapply and the FAA which must process
these applications.96 97 98
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    \95\ Estimate of current LODA holders under Sec.  91.319(h)
obtained from FAA Aviation Safety (AVS) line of business. AVS
currently tracks active LODAs in FAA's Web-based Operations Safety
System (WebOPSS).
    \96\ The FAA estimated 4 hours per application for the LODA
holder to reapply. The undiscounted applicant cost was calculated as
burden hours times average labor rate including benefits. The FAA
used an average wage including benefits of $63.25, which is the
average wage of flight instructors ($43.14) divided by the percent
of total employer costs of employee compensation represented by
wages (68.2%) to account for benefits (31.8%). Flight instructor
wages are the Bureau of Labor Statistics wage estimate for
commercial pilots employed at technical and trade schools. Accessed
Apr. 12, 2022, https://www.bls.gov/oes/current/oes532012.htm.
    \97\ The undiscounted FAA cost was calculated as burden hours
times average labor rate including benefits. The FAA used an average
wage including benefits of $79.30, which is the wage of FG-13 Step 5
FAA aviation safety inspectors ($58.20) in the Washington-Baltimore-
Arlington Metro Area in 2022 plus benefits (36.25% of wages).
    \97\FAA Order 8900.1, Flight Standards Management Information
System, Vol. 3, Chpt. 11, Sec. 1. Use of Aircraft Issued
Experimental Certificates in Flight Training for Compensation or
Hire.
    \98\ The undiscounted FAA cost was calculated as burden hours
times average labor rate including benefits. The FAA used an average
wage including benefits of $79.30, which is the wage of FG-13 Step 5
FAA aviation safety inspectors ($58.20) in the Washington-Baltimore-
Arlington Metro Area in 2022 plus benefits (36.25% of wages).
---------------------------------------------------------------------------

    Under current guidance,\99\ LODA applicants already submit most of
the proposed requirements related to training plans, instructor
qualifications, maintenance, airworthiness, and record-keeping in order
to successfully obtain and maintain a LODA. For the most part, the cost
of reapplying will consist of the time to gather the relevant
information and submit the new application. Current LODA holders who
reapply successfully will gain the benefit of broadly offering their
aircraft for flight testing and checking. Current LODAs only allow
operators to broadly offer or advertise their aircraft for flight
training and do not permit checking or testing.
---------------------------------------------------------------------------

    \99\ FAA Order 8900.1, Flight Standards Management Information
System, Vol. 3, Chpt. 11, Sec. 1. Use of Aircraft Issued
Experimental Certificates in Flight Training for Compensation or
Hire.
---------------------------------------------------------------------------

    Similarly, the FAA expects minimal costs for operators of limited
category aircraft with exemptions to apply for a LODA prior to
expiration of their exemptions. Currently, there are fewer than five
active training exemptions for limited category aircraft. Moreover,
these exemptions normally only have a duration of two years and the FAA
expects most exemption holders to already meet most of the LODA
requirements outlined in the accompanying LODA Advisory Circular. The
cost will consist of the time to gather the required information and
submit a new LODA application.
    For future LODA applicants who seek to broadly offer their
experimental or limited category aircraft for training, testing, or
checking, the proposal is expected to lower compliance costs. Although
the proposed LODA requirements are similar to current requirements for
operators who broadly offer aircraft holding certain special
airworthiness certificates for training,

the simplified regulatory structure and guidance in the accompanying
advisory circular is expected to make it easier for potential
applicants to understand requirements and submit a successful
application.
    Overall, the FAA does not expect the proposal to significantly
increase administrative costs at the FAA. The FAA will incur costs
within the first two years of a final rule's effective date to process
LODA applications from the small subset of current holders of LODAs or
exemptions required to reapply under the proposal. However, in the long
run the streamlined regulatory structure and guidance is expected to
reduce the amount of time the FAA must spend obtaining additional
information from applicants and evaluating applications.
    Finally, the clarification and simplification of the LODA process
for operators of aircraft with certain special airworthiness
certificates who advertise or broadly offer their aircraft for
training-might ultimately lower travel costs for pilots seeking the
types of supplemental and specialized training envisioned under the
proposed Sec.  91.326(b). If more operators successfully apply for
LODAs to broadly offer specialized training, pilots interested in
receiving this optional specialized training might not have to travel
as far to receive it. For example, the FAA recognizes that training in
an Experimental Light-Sport Aircraft (ELSA) is beneficial for pilots to
gain familiarity with the performance and handling qualities of other
light-sport aircraft and ultralights. Currently, there are some two-
seat aircraft that perform and handle similarly to an ultralight,
certificated as Special Light-Sport Aircraft (SLSA) available to
conduct training, but not available in sufficient numbers for
widespread availability. Under the proposal, the availability of ELSA
for training through LODAs might enable pilots of other light-sport
aircraft and ultralights to receive optional training without traveling
as far, consequently, reducing fuel costs incurred from travel, as well
as the time cost of travel.

B. Regulatory Flexibility Determination

    The Regulatory Flexibility Act (RFA) of 1980 (Pub. L. 96-354), as
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (Pub. L. 104-121) and the Small Business Jobs Act of 2010 (Pub. L.
111-240), requires Federal agencies to consider the effects of the
regulatory action on small business and other small entities and to
minimize any significant economic impact. The term ``small entities''
comprises small businesses and not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
    Agencies must perform a review to determine whether a rule will
have a significant economic impact on a substantial number of small
entities. If the agency determines that it will, the agency must
prepare a regulatory flexibility analysis as described in the RFA.
However, if an agency determines that a rule is not expected to have a
significant economic impact on a substantial number of small entities,
section 605(b) of the RFA provides that the head of the agency may so
certify and a regulatory flexibility analysis is not required. The
certification must include a statement providing the factual basis for
this determination with a reasoned explanation.
    While the proposed rule would likely impact a substantial number of
small entities, it would have a minimal economic impact. The PAO
proposal does not impose any new requirements or costs on small
entities. It fulfills the mandate in section 517 of the FAA
Reauthorization Act of 2018 that directs the FAA to allow pilots of
aircraft under the control of forestry and fire protection agencies
engaged in PAO to credit their flight time towards FAA civil regulatory
requirements. It enables pilots to log aeronautical experience and
recent flight experience accumulated during PAO and to credit this
experience toward FAA civil certificates and ratings.
    The proposal also simplifies the regulations for operators of
certain aircraft with special airworthiness certificates to obtain a
LODA allowing them to broadly offer their aircraft for elective or
specialized flight training, testing, and checking. Relative to current
requirements to obtain a LODA or exemption for these training
operations, the proposal clarifies requirements and creates uniform
standards. The proposal also expands the types of aircraft eligible for
flight training, testing, and checking under a LODA. The only new cost
imposed by the proposal affects the holders of approximately 180 active
training LODAs who will be required to reapply within two years of the
effective date of a final rule. The FAA proposes to require these
operators to reapply to ensure compliance with the proposed
standardized LODA process. The FAA estimates that each current LODA
holder would spend approximately four hours to resubmit a LODA
application at an average cost of approximately $250 per LODA.\100\
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    \100\ Cost per resubmitted LODA calculated as four hours times
the average labor rate, including benefits. The FAA used an average
wage including benefits of $63.25, which is the average wage of
flight instructors ($43.14) divided by the percent of total employer
costs of employee compensation represented by wages (68.2%) to
account for benefits (31.8%). Flight instructor wages are the Bureau
of Labor Statistics wage estimate for commercial pilots employed at
technical and trade schools. Accessed Apr. 12, 2022, https://www.bls.gov/oes/current/oes532012.htm.
---------------------------------------------------------------------------

    The draft LODA advisory circular, published concurrently with this
proposed rule, provides guidance, sample documentation, and training
materials to fulfill Recommendation A-12-035 of the National
Transportation Safety Board (NTSB). The FAA expects the LODA advisory
circular to clarify the application process, thereby making it easier
for potential applicants to understand requirements and submit a
successful application.
    If an agency determines that a rulemaking will not result in a
significant economic impact on a substantial number of small entities,
the head of the agency may so certify under section 605(b) of the RFA.
Therefore, the FAA proposes to certify that the rule will not have a
significant economic impact on a substantial number of small entities.
The FAA welcomes comments on the basis of this certification.

C. International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal
agencies from establishing standards or engaging in related activities
that create unnecessary obstacles to the foreign commerce of the United
States. Pursuant to these Acts, the establishment of standards is not
considered an unnecessary obstacle to the foreign commerce of the
United States, so long as the standard has a legitimate domestic
objective such as the protection of safety and does not operate in a
manner that excludes imports, that meet this objective. The statute
also requires consideration of international standards and, where
appropriate, that they be the basis for U.S. standards.
    The FAA has assessed the potential effect of this proposed rule and
determined that the proposal responds to a domestic safety objective.
The FAA has determined that this proposed rule is not considered an
unnecessary obstacle to trade.

D. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement
assessing the effects of any Federal mandate in a proposed or final
agency rule that may result in an expenditure of $100 million or more
(in 1995 dollars) in any one year by State, local, and tribal
governments, in the aggregate, or by the private sector; such a mandate
is deemed to be a ``significant regulatory action.'' The FAA currently
uses an inflation-adjusted value of $165 million in lieu of $100
million. This proposed rule does not contain such a mandate; therefore,
the requirements of Title II of the Act do not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that the FAA consider the impact of paperwork and other information
collection burdens imposed on the public. According to the 1995
amendments to the Paperwork Reduction Act (5 CFR 1320.8(b)(2)(vi)), an
agency may not collect or sponsor the collection of information, nor
may it impose an information collection requirement unless it displays
a currently valid Office of Management and Budget (OMB) control number.
    As part of this rulemaking action, the FAA is also requesting OMB
approval for a new one-time information collection request. As required
by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), the FAA has
submitted these proposed information collection revisions to OMB for
its review.
    Summary: The proposed rule creates Sec.  91.326(b) which
establishes unified requirements for operators who broadly offer
certain aircraft with special airworthiness certificates for flight
training, testing, or checking to obtain prior approval from the FAA in
the form of a LODA. Through the LODA process the FAA provides oversight
of operators who advertise or broadly offer certain aircraft with
special airworthiness certificates for elective and specialized flight
training, testing, and checking. The advisory circular published
concurrently with this proposed rule provides guidance, sample
documentation, and training materials to fulfill Recommendation A-12-
035 of the National Transportation Safety Board (NTSB). The FAA expects
that the proposed Sec.  91.326(b) and advisory circular will ensure
consistency and clarify the application process, thereby making it
easier for potential applicants to understand requirements and submit a
successful application.
    Under the current Sec.  91.319(h), operators of certain
experimental aircraft already have the opportunity to apply for LODAs
permitting them to advertise or broadly offer their aircraft for flight
training, testing, or checking in exchange for compensation that
includes use of the aircraft. The proposed Sec.  91.326(b) extends the
opportunity to apply for a LODA to operators of aircraft not currently
eligible for LODAs under Sec.  91.319(h). Previously ineligible
aircraft that would be eligible for operations under a LODA in the
proposed Sec.  91.326(b) include experimental light-sport aircraft
(ELSA) and limited category aircraft. Under current rules, operators of
primary category and limited category aircraft are required to petition
the FAA for an exemption \101\ to broadly offer their aircraft for
flight training, testing or checking. Under proposed changes to Sec.
91.325 operators of primary category aircraft will be permitted to
conduct training operations without obtaining a LODA or exemption.
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    \101\ Under 14 CFR 11.5, a petition for exemption is a request
from an individual or entity requesting relief from a current
regulation. The FAA expects that the new guidance associated with
the LODA process will reduce burden hours relative to petitioning
for exemptions.
---------------------------------------------------------------------------

    In addition to extending LODA eligibility to operators of
additional limited category aircraft, the proposed rule will also
terminate all active Sec.  91.319(h) LODAs for training operations for
compensation in experimental aircraft within two years of the effective
date of the final rule. Exemptions issued for flight training in
limited and primary category aircraft will not be renewed. Exemptions
issued for Living History Flight Experiences are not affected by the
proposed rule. The FAA expects operators of experimental or limited
category aircraft with active LODAs or exemptions,\102\ respectively,
who broadly offer their aircraft for training to apply for a LODA under
the proposed Sec.  91.326(b) within this time period. The FAA currently
issues LODAs without expiration dates for eligible operators who
broadly offer their aircraft for training. The FAA is proposing to
terminate current LODAs in order to ensure that all operators are in
compliance with the proposed requirements.
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    \102\ Exemptions are typically only valid for two years.
Therefore, the FAA does not expect current exemption holders to be
materially affected by the requirement to apply for a LODA within 2
years. The FAA expects that the information and time requirements to
apply for a LODA under Sec.  91.326(c) for current exemption holders
will be similar to the time and information requirements to renew an
exemption, but substantially less than the time requirements to
petition for a new exemption.
---------------------------------------------------------------------------

    The burden analysis in this proposed rule only applies to holders
of active LODAs who must reapply within two years of the effective date
of a final rule. On February 14, 2022, the FAA published a separate
notice to revise OMB Control Number 2120-0005 for information
collection related to LODAs for flight training, testing, and checking
in certain experimental aircraft.\103\
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    \103\ See 87 FR 8335 (Feb. 14, 2022) ``Clearance of Renewed
Approval of Information Collection: General Operating and Flight
Rules FAR 91 and FAR 107.''
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    Use: The FAA will use the information provided by LODA applicants
to promote safety for specialized flight training, testing, or checking
offered to the public in experimental and limited category aircraft.
The LODA framework enables the FAA to provide oversight to ensure
effective training and maintenance of the aircraft.
    Respondents: The FAA estimates that within the first two years of
the effective date of a final rule, approximately 180 current LODA
holders will reapply for LODAs.\104\
---------------------------------------------------------------------------

    \104\ The FAA Web-based Operations Safety System (WebOPSS)
contains 180 LODAs for experimental aircraft under Sec.  91.319(h).
---------------------------------------------------------------------------

    Frequency: One time per applicant. The proposed LODAs do not have
an expiration period.
    Annual Burden Estimate: For current LODA holders who reapply within
the first two years of the effective date of a final rule, the FAA
estimates a one-time burden of four hours per applicant. The FAA
expects the applicant to keep the required information as a condition
of the current LODA, so the burden of reapplying will consist of the
time to gather the required information and resubmit. Current LODA
holders are already required to meet the recordkeeping and other
proposed requirements. Therefore, the proposal creates no new annual
burden for current LODA holders who reapply. The proposed LODAs do not
have an expiration date, so there will be no renewal costs. The FAA
assumes the burden hours per application for the FAA to process
applications from current LODA holders who reapply will be four hours.
    Table 1 presents the annual burden hours and undiscounted costs for
the approximately 180 current LODA holders required to reapply within
the first two years of the effective date of a final rule. Table 2
presents the burden estimate and costs for the Federal Government to
process these LODA applications. The total undiscounted cost of burden
hours for applicants and the FAA combined is estimated to be

$102,642 over two years. Total discounted (at 7 percent) cost of burden
hours is estimated to be $91,743 over two years. Total annualized costs
at a 7 percent discount rate are $47,423.

                 Table 1--Total Burden Hours and Costs for Current LODA Holders Who Must Reapply
----------------------------------------------------------------------------------------------------------------
                                             Number of LODA       Hours per
                                              applications       application     Total burden    Total cost for
                   Year                       from current      current LODA         hours         applicants
                                            LODA holders \1\       holders                      undiscounted \2\
----------------------------------------------------------------------------------------------------------------
1.........................................                60                 4             240           $15,181
2.........................................               120                 4             480            30,362
                                           ---------------------------------------------------------------------
    Total.................................  ................  ................             720            45,543
    Mean..................................  ................  ................             360            22,772
----------------------------------------------------------------------------------------------------------------
LODA = Letter of Deviation Authority.
\1\ The FAA assumes that approximately one third of current LODA holders will reapply the first year after the
  effective date of a final rule and the remaining LODA holders will reapply in the second year.
\2\ Undiscounted applicant cost calculated as burden hours times average labor rate including benefits. The FAA
  used an average wage including benefits of $63.25, which is the average wage of flight instructors ($43.14)
  divided by the percent of total employer costs of employee compensation represented by wages (68.2%) to
  account for benefits (31.8%). Flight instructor wages are the Bureau of Labor Statistics wage estimate for
  commercial pilots employed at technical and trade schools. Accessed April 12, 2022, https://www.bls.gov/oes/current/oes532012.htm.

Table 2--Total Burden Hours and Cost to Federal Government To Process Applications From Current LODA Holders Who
                                                  Must Reapply
----------------------------------------------------------------------------------------------------------------
                                             Number of LODA
                                              applications        Hours per      Total burden       FAA cost
                   Year                       from current     application FAA     hours FAA    undiscounted \2\
                                            LODA holders \1\
----------------------------------------------------------------------------------------------------------------
1.........................................                60                 4             240           $19,033
2.........................................               120                 4             480            38,066
                                           ---------------------------------------------------------------------
    Total.................................               180  ................             720            57,098
    Mean..................................                90  ................             360            28,549
----------------------------------------------------------------------------------------------------------------
LODA = Letter of Deviation Authority.
\1\ The FAA assumes that approximately one third of current LODA holders will reapply the first year after the
  effective date of the final rule and the remaining LODA holders will reapply in the second year.
\2\ Undiscounted government cost calculated as burden hours times average labor rate including benefits. The FAA
  used an average wage including benefits of $79.30, which is the wage of FG-13 Step 5 FAA aviation safety
  inspectors ($58.20) in the Washington-Baltimore-Arlington Metro Area in 2022 plus benefits (36.25% of wages).

    The agency is soliciting comments to--
    (1) Evaluate whether the proposed information requirement is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden
hours and cost;
    (3) Enhance the quality, utility and clarity of the information to
be collected; and
    (4) Minimize the burden of collecting information on those who are
to respond, including by using appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology.
    Individuals and organizations may send comments on the information
collection requirement to the address listed in the ADDRESSES section
at the beginning of this preamble by August 22, 2023. Comments also
should be submitted to the Office of Management and Budget, Office of
Information and Regulatory Affairs, Attention: Desk Officer for FAA,
New Executive Office Building, Room 10202, 725 17th Street NW,
Washington, DC 20053.

F. International Compatibility

    In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to conform to
International Civil Aviation Organization (ICAO) Standards and
Recommended Practices to the maximum extent practicable. The FAA has
reviewed the corresponding ICAO Standards and Recommended Practices and
has identified a difference with these proposed regulations. The FAA
notes that, under proposed Sec.  61.51(f)(4), pilots designated by a
government entity as an SIC may log SIC time during authorized PAO with
certain limitations. The FAA determined that this provision is
inconsistent with the ICAO standard for logging. Accordingly, all
pilots who log flight time under this provision and apply for an ATP
certificate would have a limitation on the certificate indicating that
the pilot does not meet the PIC aeronautical experience requirements of
ICAO. This limitation may be removed when the pilot presents
satisfactory evidence that he or she has met the ICAO standards.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically
excluded from preparation of an environmental assessment or
environmental impact statement under the National Environmental Policy
Act in the absence of extraordinary circumstances. The FAA has
determined this proposed rule qualifies for the categorical exclusion
identified in paragraph 5-6.6f and involves no extraordinary
circumstances.

VI. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this rulemaking under the principles and
criteria of Executive Order 13132, Federalism. The agency has
determined that this action would not have a

substantial direct effect on the States, or the relationship between
the Federal Government and the States, or on the distribution of power
and responsibilities among the various levels of government, and,
therefore, would not have federalism implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy
Supply, Distribution, or Use

    The FAA analyzed this rulemaking under Executive Order 13211,
Actions Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use. The agency has determined that it would not be a
``significant energy action'' under the executive order and would not
be likely to have a significant adverse effect on the supply,
distribution, or use of energy.

C. Executive Order 13609, International Cooperation

    Executive Order 13609, Promoting International Regulatory
Cooperation, promotes international regulatory cooperation to meet
shared challenges involving health, safety, labor, security,
environmental, and other issues and to reduce, eliminate, or prevent
unnecessary differences in regulatory requirements. The FAA has
analyzed this action under the policies and agency responsibilities of
Executive Order 13609, and has determined that this action would have
no effect on international regulatory cooperation.

VII. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. The Agency
also invites comments relating to the economic, environmental, energy,
or federalism impacts that might result from adopting the proposals in
this document. The most helpful comments reference a specific portion
of the proposal, explain the reason for any recommended change, and
include supporting data. To ensure the docket does not contain
duplicate comments, commenters should submit only one time if comments
are filed electronically or commenters should send only one copy of
written comments if comments are filed in writing.
    The FAA will file in the docket all comments it receives, as well
as a report summarizing each substantive public contact with FAA
personnel concerning this proposed rulemaking. Before acting on this
proposal, the FAA will consider all comments it receives on or before
the closing date for comments. The FAA will consider comments filed
after the comment period has closed if it is possible to do so without
incurring expense or delay. The FAA may change this proposal in light
of the comments it receives.

B. Confidential Business Information

    Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA), 5 U.S.C. 552,
CBI is exempt from public disclosure. If your comments responsive to
this NPRM contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this NPRM, it is important that you
clearly designate the submitted comments as CBI. Please mark each page
of your submission containing CBI as ``PROPIN.'' The FAA will treat
such marked submissions as confidential under the FOIA, and they will
not be placed in the public docket of this NPRM. Submissions containing
CBI should be sent to the person identified in the FOR FURTHER
INFORMATION CONTACT section of this document. Any commentary the FAA
receives which is not specifically designated as CBI will be placed in
the public docket for this rulemaking.

C. Electronic Access and Filing

    A copy of this notice of proposed rulemaking, all comments
received, any final rule, and all background material may be viewed
online at www.regulations.gov using the docket number listed above. A
copy of this rulemaking will be placed in the docket. Electronic
retrieval help and guidelines are available on the website. It is
available 24 hours each day, 365 days each year. An electronic copy of
this document may also be downloaded from the Office of the Federal
Register's website at www.federalregister.gov and the Government
Publishing Office's website at www.govinfo.gov. A copy may also be
found at the FAA's Regulations and Policies website at www.faa.gov/regulations_policies.
    Copies may also be obtained by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW, Washington, DC 20591, or by calling<PHONE_NUMBER>.
Commenters must identify the docket or notice number of this
rulemaking.
    All documents the FAA considered in developing this proposed rule,
including economic analyses and technical reports, may be accessed in
the electronic docket for this rulemaking.

List of Subjects

14 CFR Part 61

    Aircraft, Airmen, Alcohol abuse, Aviation safety, Drug abuse,
Flight instruction, Recreation and recreation areas, Reporting and
recordkeeping requirements, Security measures, Teachers.

14 CFR Part 91

    Agriculture, Air carriers, Air taxis, Air traffic control,
Aircraft, Airmen, Airports, Aviation Safety, Charter flights, Freight,
Reporting and recordkeeping requirements, Security measures,
Transportation.

The Proposed Amendment

    For the reasons discussed in the preamble, the Federal Aviation
Administration proposes to amend chapter I of title 14, Code of Federal
Regulations as follows:

PART 61--CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND
INSTRUCTORS

0
1. The authority citation for part 61 is revised to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701-44703, 44707,
44709-44711, 44729, 44903, 45102-45103, and 45301-45302, and sec.
2307, Pub. L. 114-190, 130 Stat. 615 (49 U.S.C. 44703 note); and
sec. 318, Pub. L. 115-254, 132 Stat. 3186 (49 U.S.C. 44703 note).

0
2. Amend Sec.  61.51 by revising paragraphs (f) and (j)(4) to read as
follows:

Sec.  61.51   Pilot logbooks.

* * * * *
    (f) Logging second-in-command flight time. A person may log second-
in-command time only for that flight time during which that person:
    (1) Is qualified in accordance with the second-in-command
requirements of Sec.  61.55, and occupies a crewmember station in an
aircraft that requires more than one pilot by the aircraft's type
certificate;
    (2) Holds the appropriate category, class, and instrument rating
(if an instrument rating is required for the flight) for the aircraft
being flown, and more than one pilot is required under the type
certification of the aircraft or the regulations under which the flight
is being conducted;
    (3) Serves as second-in-command in operations conducted in
accordance with Sec.  135.99(c) of this chapter when a second pilot is
not required under the

type certification of the aircraft or the regulations under which the
flight is being conducted, provided the requirements in Sec.  61.159(c)
are satisfied; or
    (4) Is designated by a government entity as second in command when
operating in accordance with paragraph (j)(4) of this section provided
the aircraft used is a large aircraft or turbo-jet powered airplane; or
holds or originally held a type certificate that requires a second
pilot provided that:
    (i) Second-in-command time logged under paragraph (f)(4) of this
section may not be used to meet the aeronautical experience
requirements for the private or commercial pilot certificates or an
instrument rating; and
    (ii) An applicant for an airline transport pilot certificate who
logs second in command time under paragraph (f)(4) of this section is
issued an airline transport pilot certificate with the limitation,
``Holder does not meet the pilot in command aeronautical experience
requirements of ICAO,'' as prescribed under Article 39 of the
Convention on International Civil Aviation if the applicant does not
meet the ICAO requirements contained in Annex 1 ``Personnel Licensing''
to the Convention on International Civil Aviation. An applicant is
entitled to an airline transport pilot certificate without the ICAO
limitation specified under this paragraph when the applicant presents
satisfactory evidence of having met the ICAO requirements and otherwise
meets the aeronautical experience requirements of Sec.  61.159.
* * * * *
    (j) * * *
    (4) An aircraft used to conduct a public aircraft operation under
49 U.S.C. 40102(a)(41) and 40125.
* * * * *
0
3. Amend Sec.  61.57 by adding paragraph (e)(5) to read as follows:

Sec.  61.57  Recent flight experience: Pilot in command.

* * * * *
    (e) * * *
    (5) Paragraphs (a) and (b) of this section do not apply to a person
receiving flight training from an authorized instructor, provided:
    (i) The flight training is limited to the purpose of meeting the
requirements of paragraphs (a) and (b) of this section;
    (ii) Notwithstanding the provisions of paragraphs (a) and (b), the
person receiving flight training meets all other requirements to act as
pilot in command of the aircraft; and
    (iii) The authorized instructor and the person receiving flight
training are the sole occupants of the aircraft.
0
4. Amend Sec.  61.159 by revising paragraph (e) to read as follows:

Sec.  61.159  Aeronautical experience: Airplane category rating.

* * * * *
    (e) An applicant who credits time under paragraphs (b), (c), and
(d) of this section and Sec.  61.51(f)(4) is issued an airline
transport pilot certificate with the limitation, ``Holder does not meet
the pilot in command aeronautical experience requirements of ICAO,'' as
prescribed under Article 39 of the Convention on International Civil
Aviation.
* * * * *
0
5. Amend Sec.  61.161 by revising paragraph (d) to read as follows:

Sec.  61.161  Aeronautical experience: Rotorcraft category and
helicopter class rating.

* * * * *
    (d) An applicant who credits time under paragraph (c) of this
section and Sec.  61.51(f)(4) is issued an airline transport pilot
certificate with the limitation, ``Holder does not meet the pilot in
command aeronautical experience requirements of ICAO,'' as prescribed
under Article 39 of the Convention on International Civil Aviation.
* * * * *
0
6. Amend Sec.  61.193 by:
0
a. Revising paragraphs (a) introductory text and (a)(7); and
0
b. Adding paragraph (c).
    The revisions and addition read as follows:

Sec.  61.193   Flight Instructor Privileges.

    (a) A person who holds a flight instructor certificate is
authorized within the limitations of that person's flight instructor
certificate and ratings to conduct ground training, flight training,
certain checking events, and to issue endorsements related to:
* * * * *
    (7) A flight review, operating privilege, or recency of experience
requirement of this part, or training to maintain or improve the skills
of a certificated pilot;
* * * * *
    (c) The privileges authorized in this section do not permit a
person who holds a flight instructor certificate to conduct operations
that would otherwise require an air carrier or operating certificate or
specific authorization from the Administrator.
0
7. Amend Sec.  61.413 by:
0
a. Revising paragraphs (a) introductory text and (a)(6); and
0
b. Adding paragraph (c).
    The revisions and addition read as follows:

Sec.  61.413   What are the privileges of my flight instructor
certificate with a sport pilot rating?

    (a) If you hold a flight instructor certificate with a sport pilot
rating, you are authorized, within the limits of your certificate and
rating, to conduct ground training, flight training, certain checking
events, and to issue endorsements. The kind of training and the
endorsements that may be issued are those required for, or related to:
* * * * *
    (6) A flight review or operating privilege for a sport pilot, or
training to maintain or improve the skills of a sport pilot;
* * * * *
    (c) The privileges authorized in this section do not permit a
person who holds a flight instructor certificate to conduct operations
that would otherwise require an air carrier or operating certificate or
specific authorization from the Administrator.

PART 91--GENERAL OPERATING AND FLIGHT RULES

0
8. The authority citation for part 91 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40103, 40105,
40113, 40120, 44101, 44111, 44701, 44704, 44709, 44711, 44712,
44715, 44716, 44717, 44722, 46306, 46315, 46316, 46504, 46506-46507,
47122, 47508, 47528-47531, 47534; Sec. 5604 of Pub. L. 117-263.

0
9. Revise Sec.  91.315 to read as follows:

Sec.  91.315   Limited category civil aircraft: Operating limitations.

    Except as provided in Sec.  91.326 of this part, no person may
operate a limited category civil aircraft carrying persons or property
for compensation or hire in operations that:
    (a) Require an air carrier or commercial operator certificate
issued under part 119 of this chapter;
    (b) Are listed in Sec.  119.1(e) of this chapter;
    (c) Require management specifications for a fractional ownership
program issued in accordance with Subpart K of part 91 of this chapter;
or
    (d) Are conducted under parts 129, 133, or 137 of this chapter.
0
10. Amend Sec.  91.319 by:
0
a. Revising paragraphs (a) introductory text, (a)(2), (d)(3), (e)(2)
and (f); and
0
b. Removing and reserving paragraph (h).
    The revisions read as follows:

Sec.  91.319   Aircraft having experimental certificates: Operating
limitations.

    (a) Except as provided in Sec.  91.326 of this part, no person may
operate an

aircraft that has an experimental certificate--
    (1) * * *
    (2) Carrying persons or property for compensation or hire in
operations that:
    (i) Require an air carrier or commercial operator certificate
issued under part 119 of this chapter;
    (ii) Are listed in Sec.  119.1(e) of this chapter;
    (iii) Require management specifications for a fractional ownership
program issued in accordance with subpart K of part 91 of this chapter;
or
    (iv) Are conducted under parts 129, 133, or 137 of this chapter.
* * * * *
    (d) * * *
    (3) Notify air traffic control of the experimental nature of the
aircraft when utilizing air traffic services.
    (e) * * *
    (2) Conduct operations authorized under Sec.  91.326 of this part.
    (f) No person may lease an aircraft that is issued an experimental
certificate under Sec.  21.191(i) of this chapter, except--
    (1) In accordance with paragraph (e)(1) of this section; or
    (2) To conduct a solo flight in accordance with a training program
included as part of the deviation authority specified under Sec.
91.326(b) of this part.
* * * * *
    (h) [Reserved]
* * * * *
0
11. Revise Sec.  91.325 to read as follows:

Sec.  91.325   Primary category aircraft: Operating limitations.

    (a) Unless provided for in this section, no person may operate a
primary category aircraft carrying a person or property for
compensation or hire in operations that:
    (1) Require an air carrier or commercial operator certificate
issued under part 119 of this chapter;
    (2) Are listed in Sec.  119.1(e) of this chapter;
    (3) Require management specifications for a fractional ownership
program issued in accordance with subpart K of part 91 of this chapter;
or
    (4) Are conducted under parts 129, 133, or 137 of this chapter.
    (b) Except as provided in Sec.  91.326(a), no person may operate a
primary category aircraft that is maintained by the pilot-owner under
an approved special inspection and maintenance program except--
    (1) The pilot-owner; or
    (2) A designee of the pilot-owner, provided that the pilot-owner
does not receive compensation for the use of the aircraft.
    (c) A primary category aircraft that is maintained by an
appropriately rated mechanic or an authorized certificated repair
station in accordance with the applicable provisions of part 43 of this
chapter may be used to conduct flight training, checking, and testing
for compensation or hire.
0
12. Add Sec.  91.326 to subpart D to read as follows:

Sec.  91.326   Exception to Operating Certain Aircraft for Compensation
or Hire.

    (a) For purposes of Sec. Sec.  91.315, 91.319, and 91.325 of this
part, an authorized instructor, registered owner, lessor, or lessee may
operate an aircraft for the purpose of flight training, checking, or
testing, and in the case of an experimental aircraft, for a purpose
other than that for which the certificate was issued, provided--
    (1) The authorized instructor is not providing both the training
and the aircraft;
    (2) No person advertises or broadly offers the aircraft as
available for flight training, checking, or testing; and
    (3) No person receives compensation for the use of the aircraft for
a specific flight during which flight training, checking, or testing
was received, other than expenses for owning, operating, and
maintaining the aircraft. Compensation for the use of the aircraft for
profit is prohibited.
    (b) Except as provided in paragraphs (a) and (c) of this section,
no person may conduct flight training, checking, or testing in a
limited category or experimental aircraft without deviation authority
issued under this paragraph.
    (1) No person may operate under this section without a letter of
deviation authority issued by the Administrator.
    (2) The FAA may cancel or amend a letter of deviation authority if
it determines that the deviation holder has failed to comply with the
conditions and limitations or at any time if the Administrator
determines that the deviation is no longer necessary or in the interest
of safety.
    (3) An applicant must submit a request for deviation authority in a
form and manner acceptable to the Administrator at least 60 days before
the date of intended operations. A request for deviation authority must
contain a complete description of the proposed operation which
establishes a level of safety equivalent to that provided under the
regulations for the deviation requested, including:
    (i) A letter identifying the name and address of the applicant;
    (ii) The name and contact information of the individual with
ultimate responsibility for operations authorized under the deviation
authority;
    (iii) Specific aircraft make(s), model(s), registration number(s),
and serial numbers to be used;
    (iv) Copies of each aircraft's airworthiness certificate, including
the FAA-issued operating limitations, if applicable;
    (v) Ejection seat information, if applicable;
    (vi) An exemption issued under part 11, if applicable;
    (vii) A detailed training program that demonstrates the proposed
activities will meet the intended training objectives;
    (viii) A description of the applicant's process to determine
whether a trainee has a specific need for formation or aerobatic
training, or training leading to the issuance of an endorsement, if
those types of training are being requested; and
    (ix) Any other information that the Administrator deems necessary
to evaluate the application.
    (4) The Administrator may prescribe additional limitations in a
letter of deviation authority that the Administrator considers
necessary for safety. The holder of a letter of deviation authority
must comply with any limitations and conditions mandated in the
deviation authority.
    (5) No person other than the authorized flight instructor,
designated examiner, person receiving flight training or being checked
or tested, or persons essential for the safe operation of the aircraft
may be on board during operations conducted under the deviation
authority.
    (6) The Administrator may limit the types of training, testing, and
checking authorized under this deviation authority. Training, testing,
and checking under this deviation authority must be conducted
consistent with the training program submitted for FAA review.
    (c) For deviation authority issued under Sec.  91.319 of this part
prior to [EFFECTIVE DATE OF FINAL RULE], the following requirements
apply--
    (1) The deviation holder may continue to operate under the letter
of deviation authority until [DATE 24 MONTHS AFTER EFFECTIVE DATE OF
FINAL RULE];
    (2) The deviation holder must continue to comply with the
conditions and limitations in the letter of deviation authority when
conducting an operation under the letter of deviation authority in
accordance with Sec.  91.326(c)(1);
    (3) The letter of deviation authority may be cancelled or amended
at any time; and

    (4) The letter of deviation authority terminates on [DATE 24 MONTHS
AFTER THE EFFECTIVE DATE OF THE FINAL RULE].
0
13. Amend Sec.  91.327 by revising paragraph (a)(2) to read as follows:

Sec.  91.327   Aircraft having a special airworthiness certificate in
the light-sport category: Operating limitations.

    (a) * * *
    (2) To conduct flight training, checking, and testing.
* * * * *

    Issued under authority provided by 49 U.S.C. 106(f), 44701-
44703, sec. 517 of Public Law 115-254, and Sec. 5604 of Public Law
117-263 in Washington, DC.
Wesley L. Mooty,
Acting Deputy Executive Director, Flight Standards Service.
[FR Doc. 2023-12600 Filed 6-22-23; 8:45 am]
BILLING CODE 4910-13-P