[Federal Register Volume 88, Number 142 (Wednesday, July 26, 2023)]
[Rules and Regulations]
[Pages 48072-48092]
[FR Doc No: 2023-15619]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 91, 110, 119, 121, 125, and 136

[Docket No. FAA-2022-1563; Amdt. Nos. 91-370, 110-3, 119-20, 121-390,
125-74, 136-2]
RIN 2120-AL80

Update to Air Carrier Definitions

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The FAA is amending the regulatory definitions of certain air
carrier and commercial operations. This final rule adds powered-lift to
these definitions to ensure the appropriate sets of rules apply to air
carriers' and certain commercial operators' operations of aircraft that
FAA regulations define as powered-lift. The FAA is also updating
certain basic requirements that apply to air carrier oversight, such as
the contents of operations specifications and the experience applicable
to certain management personnel. In addition, this final rule applies
the rules for commercial air tours to powered-lift. This final rule is
an important step in the FAA's integration of new entrant aircraft in
the National Airspace System (NAS).

DATES: Effective September 25, 2023.

ADDRESSES: For information on where to obtain copies of rulemaking
documents and other information related to this final rule, see ``How
to Obtain Additional Information'' in the SUPPLEMENTARY INFORMATION
section of this document.

FOR FURTHER INFORMATION CONTACT: Jackie Clow, Aviation Safety
Inspector, Air Transportation Division, Flight Standards Service,
Federal Aviation Administration, 800 Independence Avenue SW,
Washington, DC 20591; telephone:<PHONE_NUMBER>; email:
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Executive Summary
II. Authority for This Rulemaking
III. Background
    A. Statement of the Problem
    B. The Notice of Proposed Rulemaking
IV. Discussion of the Final Rule and Comments
    A. Certification of Air Carrier and Operator Definitions
    B. Requirements and Applicability of Part 119
    C. Commercial Air Tours and Flights for the Benefit of
Charitable, Nonprofit, or Community Events
V. Regulatory Notices and Analyses
    A. Regulatory Evaluation
    B. Regulatory Flexibility Act
    C. International Trade Impact Assessment
    D. Unfunded Mandates Assessment
    E. Paperwork Reduction Act
    F. International Compatibility
    G. Environmental Analysis
VI. Executive Order Determinations
    A. Executive Order 13132, Federalism
    B. Executive Order 13175, Consultation and Coordination With
Indian Tribal Governments
    C. Executive Order 13211, Regulations That Significantly Affect
Energy Supply, Distribution, or Use
    D. Executive Order 13609, Promoting International Regulatory
Cooperation
VII. Additional Information
    A. Electronic Access and Filing
    B. Small Business Regulatory Enforcement Fairness Act

I. Executive Summary

    The FAA is adopting the regulatory amendments proposed in the
notice of proposed rulemaking (NPRM), Update to Air Carrier
Definitions.\1\ The Update to Air Carrier Definitions NPRM proposed
adding powered-lift to the definitions of five kinds of air carrier
operations--commuter, domestic, flag, on-demand, and supplemental. This
final rule will adopt those items proposed in the Update to Air Carrier
Definitions NPRM without change.
---------------------------------------------------------------------------

    \1\ Update to Air Carrier Definitions NPRM, 87 FR 74995 (Dec. 7,
2022).
---------------------------------------------------------------------------

    In this final rule, the FAA adds powered-lift to the definitions in
Sec.  110.2 of title 14 of the Code of Federal Regulations (14 CFR) to
enable air carrier operations with powered-lift. This rule also extends
the applicability of certain operating rules to powered-lift, such as
the rules that apply to certain noncommon carriage operations involving
larger aircraft and rules that apply to commercial air tours.
    In addition, this rule updates various provisions within 14 CFR
part 119 (Certification: Air Carriers and Commercial Operators) to
address air carriers' operations of powered-lift; amends certain
aircraft-specific provisions in Sec.  119.1, which outline the
applicability of and exceptions from part 119; and adds sight-seeing
flights in gliders to the exclusions from part 119. Furthermore, this
rule amends the experience requirements for personnel in certain
management positions for air carriers to ensure they have appropriate
experience in powered-lift operations. This rule also makes various
technical amendments to part 119 for clarity and to reflect current FAA
practices pertaining to the information included in operations
specifications.
    Lastly, this rule amends part 136 by applying it to rotorcraft and
powered-lift, making limited changes to ``suitable landing area'' and
Sec.  136.11(a)(2), and recodifying appendix A to subpart D as a
technical amendment.

II. Authority for This Rulemaking

    The FAA's authority to issue rules on aviation safety is codified
throughout Title 49 of the United States Code. The FAA issues this
final rule under the authority in section 106. Section 106(f)
establishes that the Administrator may promulgate regulations and
rules. Subtitle VII, Aviation Programs, describes in more detail the
scope of the agency's authority. Furthermore, section 44701(a)(5)
requires the Administrator to promote safe flight of civil aircraft in
air commerce by prescribing regulations and setting minimum standards
for other practices, methods, and procedures necessary for safety in
air commerce and national security.

Section 44702 provides express authority to the Administrator to issue
certificates under and oversee aviation safety. In addition, section
44701(d)(1)(A) specifically states the Administrator, when prescribing
safety regulations, must consider ``the duty of an air carrier to
provide service with the highest possible degree of safety in the
public interest.''
    The FAA also issues this rule in accordance with sections 44711 and
44713. Section 44711(a)(4) prohibits a person from operating as an air
carrier without an air carrier operating certificate or in violation of
a term of the certificate. Similarly, section 44711(a)(5) prohibits a
person from operating aircraft in air commerce in violation of a
regulation prescribed or a certificate that the FAA issues under
section 44701(a) or (b) or under sections 44702-44716. In addition,
section 44713 requires air carriers to make, or cause to be made,
inspections, repairs, or maintenance of equipment used in air
transportation as required by part A of subtitle VII of Title 49 of the
United States Code or regulations prescribed or orders issued by the
FAA.

III. Background

    At present, various manufacturers are developing powered-lift for
civilian use. These aircraft vary in size and passenger-seating
configurations and employ both new and traditional kinds of propulsion
systems. The operations conceptualized include vertical takeoff and
landing capability, transition from low airspeed to high-speed
horizontal flight, and sustained level forward flight.
    Powered-lift is defined in 14 CFR 1.1 as ``a heavier-than-air
aircraft capable of vertical takeoff, vertical landing, and low speed
flight that depends principally on engine-driven lift devices or engine
thrust for lift during these flight regimes and on nonrotating
airfoil(s) for lift during horizontal flight.''
    Operations with powered-lift could offer many benefits over
traditional rotorcraft. For example, some powered-lift may be capable
of transporting heavier loads at higher altitudes and faster cruise
speeds than a rotorcraft, while maintaining vertical takeoff and
landing capability. Such capability may increase efficiency in
transporting crew and material to remote locations such as offshore oil
rigs.
    Operators may also seek to use certain powered-lift for
transporting passengers point-to-point; for example, such
transportation could occur from a heliport and proceed at turboprop
airspeeds and ranges. Other opportunities may also exist in
concentrated urban environments, where short point-to-point distances
coupled with vertical takeoff and landing capability may allow for more
efficient transportation of passengers or cargo than existing ground
transportation methods. Application of the appropriate set of rules for
powered-lift in a range of certificate holders' operations serves as
both a risk mitigation measure and a framework for FAA oversight, as
necessary to achieve the requisite level of safety.
    The FAA is engaging in a multi-step process of updating the
regulations that apply to aircraft that traditionally have not operated
under these parts. Overall, the FAA maintains a risk-based approach to
the integration of new entrant aircraft into the national airspace
system. When operations present a higher level of risk, based on volume
of passengers carried and frequency of operation, the FAA will subject
such operations to a regulatory framework designed to mitigate those
risks.
    In addition to this rulemaking, the FAA is proposing a Special
Federal Aviation Regulation (SFAR), ``Integration of Powered-Lift:
Pilot Certification and Operations; Miscellaneous Amendments Related to
Rotorcraft and Airplanes'' (RIN 2120-AL72) (88 FR 38946, June 14,
2023), to establish temporary operating and airman certification
regulations for powered-lift. The FAA plans to use the information
gathered in this interim process to update its regulations to address
powered-lift operations broadly.

A. Statement of the Problem

    Currently, part 119 and the corresponding definitions in Sec.
110.2 only allow airplanes or rotorcraft to be used in air carrier or
commercial service operations. The primary purpose of this rulemaking
is to amend the language of Sec.  110.2, Definitions, and part 119,
Certification: Air Carriers and Commercial Operators, to allow powered-
lift to operate for compensation or hire. The rule will enable an air
carrier or commercial operator to operate powered-lift in air commerce.
Without this rule, air carriers and commercial operators are not
allowed to operate powered-lift in air commerce.

B. The Notice of Proposed Rulemaking

    On December 7, 2022, the FAA published a NPRM titled ``Update to
Air Carrier Definitions.'' \2\ In the NPRM, the FAA proposed adding
``powered-lift'' to certain part 91 regulations, to the air carrier and
commercial operator certification parts (parts 110 and 119), as well as
to the applicability for certain commercial operations. The FAA also
proposed amendments that would reference ``rotorcraft'' instead of
``helicopter'' to be more consistent with other existing regulations.
Adding references to ``powered-lift'' in these parts will enable the
FAA to certificate operators for certain commercial operations and will
serve as the first step for powered-lift entering commercial service.
---------------------------------------------------------------------------

    \2\ Update to Air Carrier Definitions NPRM, 87 FR 74995 (Dec. 7,
2022).
---------------------------------------------------------------------------

    The NPRM provided a 60-day comment period, which ended on February
6, 2023. The FAA received nine comments from industry (Airlines for
America (A4A), Air Line Pilots Association, Int'l (ALPA), General
Aviation Manufacturers Association (GAMA), Helicopter Association
International (HAI), Jack Harter Helicopters, Inc., Joby Aviation
(Joby), Wisk Aero, and two anonymous comments).
    The FAA received four comments in general support of the NPRM, four
comments proposing revisions to the rule, and one anonymous comment in
general opposition.

IV. Discussion of the Final Rule and Comments Received

A. Certification of Air Carrier and Operator Definitions

    Title 14 CFR 110.2 provides definitions that pertain to the
certification of air carriers and operators for compensation or hire.
Specifically, it defines commuter operation, domestic operation, flag
operation, on-demand operation, and supplemental operation. In the
NPRM, the FAA proposed to amend those definitions to include powered-
lift. Therefore, the rules and applicability sections in 14 CFR chapter
1, subchapter G, would include use of powered-lift in those kinds of
operations. Amending these definitions along with other provisions of
part 119 enables powered-lift to engage in operations consistent with
the applicable statutory framework that applies to air carrier and
commercial operations. The FAA received four comments in general
support of the revision of existing regulations to address powered-
lift. None of the commenters raised concerns or commented directly on
the revision of these definitions.
    For the foregoing reasons, the FAA adopts as final Sec.  110.2 that
incorporates ``powered-lift'' into the following definitions: commuter
operation,

domestic operation, flag operation, on-demand operation, and
supplemental operation.

B. Requirements and Applicability of Part 119

    Part 119 contains basic requirements that apply to each person that
operates or intends to operate a civil aircraft as an air carrier or
commercial operator in air commerce. Part 119 also details the process
for obtaining and maintaining an operating certificate.
    The FAA proposed revising Sec.  119.1(a)(2) to apply part 119 to
each person operating or intending to operate, when common carriage is
not involved, airplanes or powered-lift with a passenger-seat
configuration of 20 or more seats and a payload capacity of 6,000
pounds or more. The FAA also proposed to add Sec.  119.1(a)(3) for
consistency with Sec.  119.23 which was omitted during the creation of
part 119. This new paragraph applies part 119 to each person operating
or intending to operate airplanes or powered-lift for noncommon
carriage or private carriage operations for compensation or hire with a
passenger-seat configuration of less than 20 seats and a payload
capacity of less than 6,000 pounds.
    Similarly, the FAA proposed amending Sec.  119.5(c) to include
powered-lift operations in the description of which persons will be
issued an operating certificate for operations when common carriage is
not involved. The FAA also proposed amending Sec. Sec.  119.21 and
119.23 to apply appropriate requirements to powered-lift operations of
commercial operators engaged in intrastate common carriage, direct air
carriers, or when common carriage is not involved.
    Many operations are subject to exclusion from part 119. Some of the
exclusions in Sec.  119.1(e) do not specify the type of aircraft;
however, some exclusions apply only to helicopters or only to airplanes
and helicopters. Using the term ``rotorcraft'' throughout Sec.  119.1
ensures consistency with other applicability provisions of part 119.
    The FAA proposed replacing ``helicopter'' with ``rotorcraft'' and
adding ``powered-lift'' to the exclusion described at Sec.
119.1(e)(4)(v) for aerial work operations. The FAA anticipates powered-
lift would perform functions in aerial work in much the same manner as
rotorcraft currently do. Allowing powered-lift to operate under this
exception poses low risk to the general public. The FAA also proposed a
technical amendment in the NPRM regulatory text to clarify that the
exception under Sec.  119.1(e)(4)(v) does not apply to transportation
to and from the site of construction or repair work operations. The FAA
did not receive comments on this proposed amendment and adopts language
clarifying the exception as final.
    The FAA also proposed broadening the exclusion in Sec.  119.1(e)(7)
for helicopter flights conducted within a 25 statute mile radius of the
airport of takeoff meeting specific conditions \3\ to permit those
flights to occur using powered-lift or rotorcraft, rather than only
helicopters. Expanding this exclusion to rotorcraft and powered-lift
ensures consistency with other applicability provisions of part 119.
---------------------------------------------------------------------------

    \3\ The conditions listed in Sec.  119.1(e)(7) include: (i) not
more than two passengers are carried in the helicopter in addition
to the required flightcrew; (ii) each flight is made under day
visual flight rules (VFR) conditions; (iii) the helicopter used is
certificated in the standard category and complies with the 100-hour
inspection requirements of part 91; (iv) the operator notifies the
responsible Flight Standards office at least 72 hours before each
flight and furnishes any essential information that the office
requests; (v) the number of flights does not exceed a total of six
in any calendar year; (vi) each flight has been approved by the
Administrator; and (vii) cargo is not carried in or on the
helicopter.
---------------------------------------------------------------------------

    In addition, the FAA proposed adding operations conducted in
gliders to the exception that applies to sightseeing flights. The
addition of gliders to this exception ensures the regulatory text of
Sec.  119.1(e)(5) reflects the FAA's current practices of permitting
glider operations under this exception from part 119 and is consistent
with the level of risk mitigation necessary for such operations.
    Lastly, the FAA proposed adding powered-lift to Sec.  119.1(e)(2),
which currently excludes certain nonstop commercial air tour flights
conducted in either an airplane or helicopter from the applicability of
part 119. The FAA also proposed amending ``helicopter'' to
``rotorcraft''. The FAA did not receive any comments on the
aforementioned amendments. Consequently, the FAA adopts these changes
as final.
1. Records Regarding Operations
    The existing text of Sec.  119.49(a)(12), (b)(12), and (c)(11)
requires operations specifications to contain ``[a]ny authorized
deviation and exemption'' issued under 14 CFR chapter 1. The FAA
determined this requirement as written is too broad, as it obligates
certificate holders to ensure their operations specifications contain
exemptions and deviations that also apply to the aircraft the
certificate holder uses. The FAA proposed narrowing the current
requirements in Sec.  119.49 by requiring that operations
specifications contain only exemptions and deviations the FAA has
issued that apply to the certificate holder.
    Similar to this rule's amendments to Sec.  119.49(a)(12), (b)(12),
and (c)(11), the FAA proposed revising Sec.  91.1015(a)(9) in a similar
manner. Section 91.1015(a)(9) applies to management specifications that
persons who participate in a fractional ownership program under part
91, subpart K, maintain. Requiring a listing or copies of exemptions
that apply to the aircraft rather than the operator is unnecessary for
the FAA's oversight of participants' operations under part 91, subpart
K. The FAA did not receive comments regarding these proposed changes.
As a result, the FAA adopts them as final.
2. Management of Operation
    Sections 119.65 through 119.71 set forth management personnel
requirements that certificate holders must comply with to ensure the
highest degree of safety in their operations. The FAA proposed amending
the experience requirements for operations conducted under part 121 by
making these requirements applicable to aircraft as opposed to only
airplanes. The FAA also proposed requiring at least one Chief Pilot for
each category of aircraft that each certificate holder uses, when the
certificate holder uses both airplanes and powered-lift. To enable
eventual powered-lift operations in part 121, the FAA proposed amending
these management personnel requirements to ensure these operations
maintain the highest degree of safety.
    The FAA received a comment from the Air Line Pilots Association
(ALPA) indicating that they did not support proposed rules which lower
the qualification and experience requirements for Directors of
Operations, Chief Pilots, Directors of Maintenance, and Chief
Inspectors for certificate holders. ALPA stated that the FAA is
modifying Sec. Sec.  119.65, 119.67, 119.69, and 119.71, which is not
entirely correct. The FAA did not propose to change Sec.  119.69 or
Sec.  119.71 because those sections already use the term ``aircraft''
rather than ``airplane'' and are therefore not specific to any
particular category of aircraft. However, for Sec. Sec.  119.65 and
119.67--the part 121 requirements--the term ``airplane'' is used, and
therefore the FAA proposed changes to those sections to accommodate
powered-lift. In addition, the FAA proposed in Sec.  119.65 to have a
chief pilot for each category of aircraft used. This would extend the
level of safety currently provided in the regulation to powered-lift
operations. The change proposed to Sec.  119.67 is limited to changing
``airplane'' to ``aircraft'' and rewording the experience requirements
for clarity.

    The FAA disagrees with ALPA's comment that indicates it believes
the FAA is lowering the qualification and experience requirements for
Directors of Operations, Chief Pilots, Directors of Maintenance, and
Chief Inspectors for certificate holders. The FAA is not lowering the
qualification nor the experience requirements for any of the part 119
required management positions. Rather, the FAA is applying the same
qualification and experience requirements to powered-lift as currently
required for airplanes. Consequently, the FAA adopts the proposed
amendments as final without changes.
    The FAA also proposed removing the FAA internal routing codes from
the regulatory text of Sec.  119.67(e), as the FAA no longer uses such
codes in its regulations. The FAA did not receive comments on this
proposed change and adopts it as final.
Director of Operations
    Currently, Sec.  119.67(a)(2) (Management personnel: Qualifications
for operations conducted under part 121 of this chapter) requires
Directors of Operations to have experience in large ``airplanes.'' To
broaden this section to cover Directors of Operations for certificate
holders that use powered-lift, the FAA proposed using the general term
large ``aircraft'' in that paragraph. Under the proposal, for
certificate holders that conduct operations under part 121, the
Director of Operations is required to have at least 3 years of
supervisory or managerial experience within the last 6 years in a
position that exercised operational control over any operations
conducted with large aircraft under part 121 or part 135. In the
alternative, if the certificate holder uses only small aircraft in its
operations, then the Director of Operations may obtain this experience
in large or small aircraft.
    Existing Sec.  119.67(a)(3) outlines the requirements for anyone
who serves for the first time in a Director of Operations role for a
certificate holder that conducts operations under part 121. The FAA
proposed under this rule that a person who serves as Director of
Operations needs to have experience as pilot-in-command in at least one
of the categories of aircraft the certificate holder uses in its
operations. In using the term ``category'' in this context, this rule
means the broad classification of aircraft regarding the certification,
ratings, privileges, and limitations of airmen. The FAA did not receive
comments regarding the aforementioned proposed changes and adopts them
as final.
Chief Pilot
    To be qualified to serve as a Chief Pilot, a person must meet the
qualification requirements of Sec.  119.67(b). The FAA proposed
requiring the Chief Pilot for powered-lift to hold an airline transport
pilot (ATP) certificate and be appropriately rated in at least one of
the powered-lift the certificate holder uses. This requirement is
important because the Chief Pilot must maintain a detailed level of
understanding of the particular aircraft the certificate holder
operates to communicate effectively with the pilots who serve in a
certificate holder's operations while performing his or her oversight
duties.
    Under Sec.  119.67(b), the FAA also proposed clarifying that the
ATP certificate with appropriate ratings must be for an aircraft the
certificate holder uses in operations ``under part 121''. This
clarification ensures certificate holders who may hold authority to
conduct operations under both part 121 and part 135 know that they must
have a Chief Pilot who holds an ATP certificate with appropriate
ratings for an aircraft used in their part 121 operations. In addition,
as with the Director of Operations qualifications discussed previously,
the FAA proposed amending ``large airplane[s]'' and ``small
airplane[s]'' to ``large aircraft'' and ``small aircraft'' under Sec.
119.67(b).
    The FAA also proposed requiring the Chief Pilot to have pilot-in-
command experience in the category of aircraft for which he or she will
exercise responsibility. In addition, the FAA proposed that the three
years of experience as pilot-in-command must have occurred under either
part 121 or part 135 and must have occurred within the past six years
if the Chief Pilot candidate has not previously served as a Chief
Pilot.
    Finally, the FAA proposed amending Sec.  119.65(a)(3) to require
one Chief Pilot for each category of aircraft because the Chief Pilot
must have a detailed understanding of the particular aircraft the
certificate holder operates. The agency has long emphasized that it
adopted the Chief Pilot experience requirements to ensure familiarity
with operations of a certificate holder, and that such familiarity is
critical to attain prior to assuming the responsibilities of Chief
Pilot.\4\
---------------------------------------------------------------------------

    \4\ See, Provision for Deviations from Qualifications
Requirements for Chief Pilots, 34 FR 7175 (Apr. 30, 1969).
---------------------------------------------------------------------------

    In amending part 119 to apply to operations of powered-lift, the
FAA has also remained mindful of the discretion that Sec.  119.65(b)
provides, which allows the FAA to approve positions or numbers of
positions other than those listed in Sec.  119.65(a). The FAA did not
receive comments on the aforementioned proposed changes to the Chief
Pilot requirements, and therefore adopts them as final. In making these
amendments, the FAA ensures each certificate holder has sufficient
qualified management personnel to ensure the highest degree of safety
and address the risks that each category of aircraft may present.
Director of Maintenance
    Section 119.65 requires each certificate holder that conducts
operations under part 121 to have a Director of Maintenance, and Sec.
119.67(c) describes the qualifications that must be met to serve as
Director of Maintenance. The FAA proposed replacing the term
``airplane'' in Sec.  119.67(c) with ``aircraft'' for the reasons
previously articulated.
    The FAA also proposed requiring the minimum one year of supervisory
experience with either maintaining or repairing at least one of the
aircraft in the same category and class of aircraft the certificate
holder uses.\5\ The Director of Maintenance needs to have accumulated
three years of experience within the past six years in maintaining or
repairing aircraft in the same category and class of aircraft the
certificate holder uses. These experience and qualification
requirements within Sec.  119.67(c) are key components of ensuring the
Director of Maintenance is adequately qualified to serve in the role of
overseeing other mechanics and personnel performing maintenance. The
FAA believes experience with aircraft of the same category and class of
aircraft the certificate holder uses would achieve the FAA's objective
of ensuring the Director of Maintenance has appropriate experience with
adhering to procedures and ensuring compliance with rules and programs
relevant to maintenance. The FAA did not receive comments on these
proposed changes and therefore adopts them as final.
---------------------------------------------------------------------------

    \5\ The term ``category'' in this context would mean the
grouping of aircraft based upon the intended use or operating
limitations. The definition in 14 CFR 1.1 cites as examples:
transport, normal, utility, acrobatic, limited, restricted and
provisional. Similarly, the use of the term ``class'' in the context
of Sec.  119.67(c), means a broad grouping of aircraft having
similar characteristics of propulsion, flight or landing. The
definition cites the following as examples of class: balloon,
glider, land airplane, rotorcraft and seaplane.
---------------------------------------------------------------------------

Chief Inspector
    Section 119.67(d) outlines the requirements for a person to serve
as a Chief Inspector for operations conducted under part 121. Chief

Inspectors have direct authority and responsibility over people
performing the requisite inspections for the certificate holder. The
FAA proposed amending the rule to permit the three years of maintenance
experience to occur on different types of large aircraft with 10 or
more passenger seats, rather than only large airplanes. This amendment
is consistent with the other changes in this rule that assist in
incorporating powered-lift into the framework of part 121. As with the
Director of Maintenance qualifications, this retention of the 10-seat
threshold ensures the Chief Inspector will have experience with an air
carrier maintenance program \6\ or a certificated repair station. The
FAA did not receive comments on this proposed amendment and adopts it
as final.
---------------------------------------------------------------------------

    \6\ 14 CFR 135.411(a)(2); see also Sec.  121.367. These
regulations require a certificate holder to have an inspection
program and a program covering other maintenance, preventative
maintenance, and alterations.
---------------------------------------------------------------------------

3. Operations Under Parts 121 and 135
    Part 121 currently applies to any turbojet-powered airplane with
one or more passenger seats used for scheduled operations. Scheduled
operations under part 135 that are generally ``commuter'' operations
are limited to 9 seats or fewer and cannot occur in turbojet airplanes.
To ensure safety of passengers carried in those kinds of operations,
the provisions of part 121 apply to scheduled operations of turbojet
airplanes. The FAA proposed to include turbojet-powered powered-lift
alongside the term ``turbojet powered airplane'' to ensure consistency
in applying the appropriate risk mitigation measures for operations of
turbojet-powered aircraft.
    The FAA received an anonymous comment requesting that the FAA
enable single-engine turbojet airplanes to conduct part 135 commuter
operations. Specifically, the commenter requested that the FAA permit
use of the Cirrus SF-50 single-engine jet in part 135 commuter
operations. The commenter asserted that, due to the Cirrus SF-50's
limited capacity--it has six seats--this aircraft should be permitted
to conduct part 135 commuter operations. The commenter stated that if
the Cirrus SF-50 was allowed to operate in commuter operations, the
pilot in command would be required to hold an ATP certificate and a
type rating since it is a turbojet airplane. Conversely, the pilot in
command of a single-engine reciprocating airplane in commuter
operations is only required to hold a commercial certificate. The FAA
determined that this comment is not within the scope of this
rulemaking. Although the FAA considered general changes pertaining to
the definition of commuter operations to enable powered-lift
operations, it did not specifically contemplate whether single-engine
turbo-jet airplanes should be able to conduct part 135 commuter
operations. As a result, the comment is not within the scope of this
rule, and the FAA declines to make the requested change.
121 Applicability
    Section 121.1 establishes the applicability of part 121, which
prescribes the rules governing air carrier operations conducted under
domestic, flag, or supplemental operations. Section 121.1(g) is the
only paragraph in Sec.  121.1 that currently uses the term
``airplane.'' The FAA proposed revising this paragraph to apply to
``aircraft'' instead of ``airplane.'' This change in Sec.  121.1 is
necessary to correspond to the changes in parts 110 and 119 to extend
the applicability of these parts to eventual powered-lift operations.
The FAA also proposed a technical correction to Sec.  121.1(c) by
removing ``SFAR No. 58'' and replacing it with ``subpart Y'' which was
codified on September 16, 2005.\7\ The FAA did not receive any comments
on these proposed changes. As a result, the FAA adopts as final Sec.
121.9(g) to apply to ``aircraft'' and Sec.  121.1(c) to state ``subpart
Y''.
---------------------------------------------------------------------------

    \7\ Advanced Qualification Program, Final Rule, 70 FR 54810
(Sept. 16, 2005).
---------------------------------------------------------------------------

Certain Flight Time Limitations and Rest Requirements Under Part 121
    Regarding flight time limitations and rest requirements, the FAA
proposed amending Sec. Sec.  121.470, 121.480, and 121.500 to replace
the word ``airplanes'' with the term ``aircraft.'' Permitting this
option for powered-lift that conduct operations in aircraft with a seat
configuration of 30 seats or fewer (excluding each crewmember seat) and
a payload capacity of 7,500 pounds or less is appropriate because the
FAA has previously determined that specific flight time limitations and
rest requirements of Sec. Sec.  135.261 through 135.273 adequately
address the risk associated with lack of rest in such operations.\8\
---------------------------------------------------------------------------

    \8\ Flightcrew Member Duty and Rest Requirements, 77 FR 330, 332
(Jan. 4, 2012).
---------------------------------------------------------------------------

    In addition, Sec.  121.470 contains an exception for operations
conducted entirely within Alaska or Hawaii with certain airplanes.
Permitting this option for powered-lift that conduct such operations
entirely within the States of Alaska or Hawaii is appropriate for the
same reasons the FAA permits this exception for similarly sized
airplanes. For such operations, the specific flight time limitations
and rest requirements of subpart R adequately address the risk
associated with lack of rest.\9\ The FAA did not receive any comments
on these proposed revisions. As a result, the FAA adopts them as final.
---------------------------------------------------------------------------

    \9\ Flightcrew Member Duty and Rest Requirements, 77 FR 330, 331
(Jan. 4, 2012); 78 FR 69287 (Nov. 19, 2013).
---------------------------------------------------------------------------

4. Operations Under Part 125
    Part 125 applies to certain air carrier operations referenced in 14
CFR 125.1. The FAA proposed to amend Sec.  125.1 such that those
provisions would include powered-lift. Specifically, the FAA proposed
to amend paragraphs (a), (b), (c), and (e) of Sec.  125.1, to add the
term ``powered-lift'' or, where appropriate, ``aircraft.''
    Large powered-lift, due to their size, weight, and passenger
capacity, present a level of risk that part 125 mitigates. Extending
these requirements and standards to applicable operations of large
powered-lift aircraft is consistent with the FAA's strategy for
mitigating risks. The FAA's amendments to Sec. Sec.  119.23 and 125.1
clarify that operators that conduct operations when common carriage is
not involved in powered-lift would do so under the rules of part 125,
provided they fall within the scope outlined in Sec.  119.23(a).
    In addition, the FAA proposed changing the ``airplane'' to
``aircraft'' in the title of part 125 and amending Sec.  125.23 to
change the word ``airplane'' to ``aircraft,'' as Sec.  125.23 generally
addresses applicability of certain rules and standards concerning
operations subject to part 125. The FAA did not receive any comments on
these proposed changes. Therefore, the FAA adopts them as final.

C. Commercial Air Tours and Flights for the Benefit of Charitable,
Nonprofit, or Community Events

    Commercial air tours are currently limited to flights conducted for
compensation or hire in an airplane or helicopter in which the purpose
of the flight is sightseeing.\10\ Passenger-carrying flights may also
be conducted without compensation or hire for certain charitable,
nonprofit, and community

events. As discussed in more detail below, the FAA proposed
incorporating powered-lift for commercial air tours and flights for the
benefit of charitable, nonprofit or community events, and revising the
necessary provisions to address ``rotorcraft'' instead of
``helicopter''. These proposals ensure consistency with the changes
made to the definition of commercial air tour in part 110, as well as
the change made to nonstop commercial air tours within Sec.  119.1.
---------------------------------------------------------------------------

    \10\ 14 CFR 110.2 and 136.1(d). Some flights that are commercial
air tours under part 136 or Sec.  91.147 may also be subject to
other requirements. For example, the requirements of 49 U.S.C. 40128
(``Overflights of national parks'') or 14 CFR part 93, subpart U
(``Special Flight Rules in the Vicinity of Grand Canyon National
Park, AZ''), refer to certain types of commercial air tours in
``powered aircraft.'' This rule would not affect the applicability
of any such requirements.
---------------------------------------------------------------------------

1. Incorporation of New Types of Aircraft
    Section 91.147 and the requirements of part 136, subpart A, are
currently limited in applicability to airplanes and helicopters. The
FAA proposed replacing ``helicopter'' with the term ``rotorcraft'' and
adding ``powered-lift'' to the relevant applicability provisions of
Sec.  91.147 to ensure the appropriate safety risk mitigations apply to
all commercial air tours. The FAA did not receive comments on this
proposed change, and therefore adopts it as final.
    In addition, as discussed in more detail below, the FAA proposed
changing the term ``helicopter'' to ``rotorcraft'' throughout part 136
to ensure the safety standards of part 136 apply to all rotorcraft and
not only helicopters. Applying the requirements of part 136 to
airplanes, powered-lift, and rotorcraft that conduct commercial air
tours is an appropriate step in ensuring safe integration of new types
of aircraft.
2. Suitable Landing Area for Emergencies
    The current definition of ``suitable landing area for helicopters''
in Sec.  136.1(d) states such an area is one that provides the operator
reasonable capability to land without damage to equipment or injury to
persons. It further provides that such areas must be site-specific,
designated by the operator, and accepted by the FAA. The FAA proposed
broadening the applicability to incorporate rotorcraft to ensure they
are subject to the safety standards of part 136. The FAA did not
receive specific comments on broadening the applicability to
incorporate rotorcraft, and therefore adopts that change as final.
    The FAA also proposed removing the phrase ``damage to equipment''
from the definition of ``suitable landing area,'' and adding
``serious'' before ``injury.'' The FAA intends to clarify that a
suitable landing area is one that provides a reasonable capability for
rotorcraft to land without causing serious injury to persons.
    In addition, the FAA proposed removing the last sentence of the
definition that states the purpose of the definition is to provide an
emergency landing area for helicopters that would not have the
capability to reach a safe landing area after an engine power loss. The
FAA determined this sentence is too narrow. The proposed definition
includes the phrase ``in an emergency'' to describe the context for
which the operator would designate landing areas for rotorcraft.
    The FAA received two comments that agreed the current definition of
``suitable landing area for helicopters'' needed to be changed. Jack
Harter Helicopters wanted the FAA to eliminate the definition entirely,
and Helicopter Association International (HAI) wanted the FAA to remove
the ``injury'' element. The FAA has determined that there is not a
safety case to entirely remove this definition, agreeing with HAI in
that the purpose of this definition is to ensure operators designate
potential landing areas in advance of the operation so that the pilot
in command is aware of these potential sites in case of an emergency
landing. Furthermore, the FAA is already modifying the current
definition from ``injury'' to ``serious injury'' which is relieving.
The FAA has determined that in the interest of safety, the injury
element should not be entirely eliminated and changing ``injury'' to
``serious injury'' strikes the appropriate balance.
    Finally, both commenters expressed a concern with the policy of
having FAA-accepted suitable landing areas. The concern is that the
current requirement for operators to establish FAA-accepted suitable
landing areas for helicopters does not mirror real-world operations.
The FAA disagrees with these comments. In the air tour industry, those
suitable landing areas should be designated in advance and the FAA
should be involved in that determination. The FAA has concluded that
removing the requirement to have those designated sites accepted by the
FAA would then allow these operators to choose new sites that may have
negative safety and environmental consequences for the surrounding
communities. Allowing operators to determine their own landing areas
without FAA acceptance could lead to some operators creating new routes
that have not been vetted by the FAA. This could result in increased
noise in the surrounding community and could impact the safety of the
air tour and individuals on the ground. Therefore, the FAA is adopting
the proposed changes as final with no further amendment.
3. Life Preservers for Operations Over Water
    The FAA also proposed in the NPRM regulatory text amending Sec.
136.9. Section 136.9 outlines requirements for life preservers for
operations over water.\11\ The FAA proposed amending the text in Sec.
136.9(b)(3) to require operators to base performance plans on
information derived from the ``approved aircraft flight manual for that
aircraft''. Using this term is consistent with the reference to
aircraft flight manual in Sec.  135.81. The FAA also proposed a
technical amendment to Sec.  136.9 by adding the term ``or'' after
Sec.  136.9(b)(2). The FAA did not receive comments on these proposed
changes and therefore adopts them as final.
---------------------------------------------------------------------------

    \11\ This requirement also applies to operations that occur
under Sec. Sec.  91.146 (``Passenger-carrying flights for the
benefit of a charitable, non-profit, or community event'') and
91.147 (``Passenger carrying flights for compensation or hire'').
---------------------------------------------------------------------------

4. Rotorcraft Floats for Over Water
    Section 136.11 outlines requirements for helicopter floats for over
water operations. The FAA proposed extending the Sec.  136.11
requirements to rotorcraft operations that occur under part 136 to help
mitigate the risks associated with emergency water landings.
    Additionally, Sec.  136.11(b)(2) does not include a reference to
``beyond the shoreline''. The FAA proposed adding this reference to
clarify the requirement to have the flotation system armed when the
aircraft is over water beyond the shoreline.\12\ The FAA did not
receive comments on the aforementioned proposed amendments and
therefore adopts them as final.
---------------------------------------------------------------------------

    \12\ Shoreline means that area of the land adjacent to the water
of an ocean, sea, lake, pond, river or tidal basin that is above the
high water mark and excludes land areas unsuitable for landing such
as vertical cliffs or land intermittently under water during the
particular flight. See, 14 CFR 136.1.
---------------------------------------------------------------------------

5. Performance Plans
    Section 136.13(a) currently requires commercial air tour operators
to complete helicopter performance plans before each operation that
will occur under part 136.\13\ The FAA proposed amending Sec.
136.13(a) by changing the term ``helicopter'' to ``rotorcraft'' for the
reasons already cited. The FAA also proposed amending the text in Sec.
136.13(a) to require operators to base performance plans on information

derived from the ``approved aircraft flight manual for that aircraft''
for the reasons cited in Sec.  136.9(b)(2). The FAA did not receive
comments on these proposed changes and therefore adopts them as final.
---------------------------------------------------------------------------

    \13\ This requirement also applies to operations that occur
under Sec. Sec.  91.146 (``Passenger-carrying flights for the
benefit of a charitable, non-profit, or community event'') and
91.147 (``Passenger carrying flights for compensation or hire'').
---------------------------------------------------------------------------

6. Commercial Air Tours in Hawaii
    Appendix A to part 136 applies to airplane and helicopter tours in
Hawaii. The appendix A requirements are equally important for air tour
operations in aircraft other than helicopters.
    Section 1 of appendix A outlines the applicability for air tour
operations conducted in Hawaii. Based on the uses of terms ``airplane''
and ``helicopter,'' the appendix does not apply to other types of
aircraft, such as powered-lift and rotorcraft that are not helicopters.
The FAA proposed amending the applicability of appendix A to
incorporate powered-lift and rotorcraft to apply the minimum flight
altitude limitations to other categories of aircraft seeking to conduct
air tours in Hawaii.
    The FAA also proposed amending the references to ``Rotorcraft
Flight Manual (RFM)'' currently throughout part 136 to ``aircraft
flight manual''. As with the amendment to Sec.  136.13, described above
in section III.C.4 of this preamble, using this term is consistent with
the reference to Aircraft Flight Manual in Sec.  135.81. The FAA did
not receive comments on these proposed changes, and therefore adopts
them as final.
    Finally, the FAA proposed amending part 136 by recodifying appendix
A as a new subpart and applying the requirements to operations of
powered-lift and rotorcraft. Jack Harter Helicopters objected to the
continuation of the appendix A requirements and recodifying them into
subpart D, stating this was originally SFAR 71 before it was brought
into appendix A for part 136 and that the FAA previously stated it
would reconsider whether appendix A should be removed at some point in
the future. This commenter also stated that they wanted various changes
to part 136 and objected that the FAA had failed to notify industry and
the public that the FAA was ``opening'' part 136 for changes. This
commenter also wanted an extension of the comment period. In response,
the FAA notes that it is only making a limited change by applying part
136 rules to rotorcraft and incorporating powered-lift. The FAA is not
opening part 136 for extensive changes at this time. The FAA is also
making limited changes to part 136 which includes amending the
definition of ``suitable landing area'', adding ``beyond the
shoreline'' to Sec.  136.11(a)(2), and recodifying appendix A to
subpart D--which is a technical amendment. These limited changes help
clarify part 136 and align part 136 with other changes made throughout
this rule. The FAA disagrees that the remainder of part 136 should be
modified at this time. As a result, the FAA is adopting the proposed
changes as final with no further amendment.
7. Flights for the Benefit of Charitable, Nonprofit, or Community
Events
    Operators that conduct passenger-carrying flights for certain
charitable, nonprofit, and community events must comply with Sec.
91.146. The FAA proposed replacing ``helicopter'' with the term
``rotorcraft'' and adding ``powered-lift'' to the relevant
applicability provisions of Sec.  91.146 for the benefit of a
charitable, nonprofit, or community event. The FAA did not receive
comments on these proposed changes. As such, the FAA adopts them as
final.

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 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 $177 million using the most
current (2022) Implicit Price Deflator for the Gross Domestic Product.
This portion of the preamble summarizes the FAA's analysis of the
economic impacts of this rule.
    In conducting these analyses, the FAA has determined that this
rule: will result in benefits that justify costs; is not an
economically ``significant regulatory action'' as defined in section
3(f) of Executive Order 12866; is not ``significant'' as defined in
DOT's Regulatory Policies and Procedures; will not have a significant
economic impact on a substantial number of small entities; will not
create unnecessary obstacles to the foreign commerce of the United
States; and will not impose an unfunded mandate on State, local, or
Tribal governments, or on the private sector by exceeding the threshold
identified above.

A. Regulatory Evaluation

    This rule enables operations of powered-lift to occur in accordance
with 49 U.S.C. 44701(d), 44705, and 44711. Currently, the FAA's rules
governing certificate holders' operations only apply to airplanes and
rotorcraft, and do not mention powered-lift. The rule amends the
definitions for the five kinds of operations codified at Sec.  110.2--
commuter, domestic, flag, on-demand, and supplemental--to ensure the
operations occur in accordance with the statutory mandates, and to
apply the appropriate set of operating rules to operations in powered-
lift. The rule also amends the appropriate applicability of sections
within part 119 to enable powered-lift, subject to applicable
exemptions, to conduct air carrier and certain other commercial
operations, commercial air tours, and noncommon carriage operations.
    The rule also amends certain aircraft-specific exceptions from the
applicability of part 119. Furthermore, this rule alters the
requirements for management personnel in certain certificate holder
management positions to ensure personnel have appropriate experience.
This rule extends the applicability of certain operating rules that
apply to commercial air tours such that they apply to operators that
conduct flights in powered-lift and rotorcraft. Finally, this rule
makes various additional amendments in the interest of ensuring
clarity. By including powered-lift in the existing operational
framework, the rule does not result in a reduction in safety because it
maintains the risk-based approach to safety. When operations present a
higher level of risk, based on volume and frequency, the FAA subjects
such operations to a regulatory framework that mitigates those risks.
    The current parameters for determining whether a certificate holder
is conducting operations under part 121, 125, or 135 will be identical
for certificate holders using powered-lift in their operations under
this rule. These parameters are shown below.

                                        Table 1--Operating Rules by Part
----------------------------------------------------------------------------------------------------------------
                                                 Passenger                       Cargo
                                 ------------------------------------------------------------     Non-common
            Parameter                                                         Scheduled/           carriage
                                       Scheduled         Nonscheduled        Nonscheduled
----------------------------------------------------------------------------------------------------------------
                                           Part 135 Operating Rules *
----------------------------------------------------------------------------------------------------------------
Passenger Seating...............  <=9 seats.........  <=30 seats........  NA................  <20 seats.
----------------------------------------------------------------------------------------------------------------
Maximum Payload.................               <=7,500 lbs.               <=7,500 lbs.......  <6,000 lbs.
----------------------------------------------------------------------------------------------------------------
Kind of Operation...............  Part 135 Commuter   Part 135 On Demand  Part 135 On Demand  Part 135 On
                                   if 5 or more                                                Demand.
                                   roundtrips/week;
                                   otherwise, Part
                                   135 On Demand.
----------------------------------------------------------------------------------------------------------------
Aircraft Type...................  Non-Turbojet......  Includes Turbojet.  Includes Turbojet.  Includes Turbojet.
----------------------------------------------------------------------------------------------------------------
                              Part 121 Operating Rules Part 125
----------------------------------------------------------------------------------------------------------------
Passenger Seating...............  >9 seats..........  >30 seats.........  NA................  >=20 seats.
----------------------------------------------------------------------------------------------------------------
Maximum Payload.................               > 7,500 lbs.               >7,500 lbs........  >=6,000 lbs.
----------------------------------------------------------------------------------------------------------------
Kind of Operation...............  Part 121 Domestic   Part 121            Part 121            Part 125.
                                   if flown within     Supplemental.       Supplemental.
                                   the 48 contiguous
                                   United States or
                                   DC; otherwise,
                                   Part 121 Flag.
----------------------------------------------------------------------------------------------------------------
Aircraft Type...................             Includes Turbojet            Includes Turbojet.  Includes Turbojet.
----------------------------------------------------------------------------------------------------------------
*All Rotorcraft Operations are conducted under part 135.
NA = Not applicable.

    The table below lists the amendments adopted by this rule. The
first column identifies the affected 14 CFR part and section; the
second column describes the change from existing regulations; the third
column provides the economic impact as a result of the change.

                   Table 2--Amendments to Rule by Part
------------------------------------------------------------------------
   14 CFR part and section              Change           Economic impact
------------------------------------------------------------------------
               PART 91--GENERAL OPERATING AND FLIGHT RULES
                         Subpart B--Flight Rules
------------------------------------------------------------------------
Sec.   91.146 Passenger-      The regulatory text is     Enabling.
 carrying flights for the      revised to allow
 benefit of a charitable,      passenger-carrying
 nonprofit, or community       flights for the benefit
 event.                        of a charitable,
                               nonprofit, or community
                               event to be conducted
                               with powered-lift. The
                               section is also amended
                               to replace the term
                               ``helicopters'' with
                               ``rotorcraft.''
Sec.   91.147 Passenger-      The regulatory text is     Enabling.
 carrying flights for          revised to allow
 compensation or hire.         passenger-carrying
                               flights for compensation
                               or hire to be conducted
                               with powered-lift. The
                               section is also amended
                               to replace the term
                               ``helicopters'' with
                               ``rotorcraft.''
------------------------------------------------------------------------
              PART 91--GENERAL OPERATING AND FLIGHT RULES
                Subpart K--Fractional Ownership Operation
------------------------------------------------------------------------
Sec.   91.1015 Management     The regulatory text        Relieving.
 specifications.               replaces the requirement
                               for operations
                               specifications to
                               contain copies of all
                               deviations and
                               exemptions (including
                               those applicable to a
                               specific aircraft) with
                               a requirement to include
                               deviations and
                               exemptions applicable
                               only to the person
                               conducting the
                               operation.
------------------------------------------------------------------------
                     PART 110--GENERAL REQUIREMENTS
------------------------------------------------------------------------
Sec.   110.2 Definitions....  Certain definitions in     Enabling.
                               this section are revised
                               to enable powered lift
                               to conduct the kinds of
                               air carrier operations.
------------------------------------------------------------------------
     PART 119--CERTIFICATION: AIR CARRIERS AND COMMERCIAL OPERATORS
                           Subpart A--General
------------------------------------------------------------------------
Sec.   119.1 Applicability..  Section 119.1(a) is        Enabling.
                               revised to incorporate
                               powered-lift with
                               seating for 20 or more
                               passengers or a maximum
                               payload capacity of
                               6,000 pounds or more, of
                               certificate holders when
                               common carriage is not
                               involved.

                              Section 119.1(e) includes  Technical
                               powered-lift and           amendment.
                               rotorcraft in the list
                               of certain, specific
                               types of operations that
                               are excluded from the
                               applicability of part
                               119. Section 119.1(a) is
                               corrected to include
                               certain airplanes and
                               powered-lift with a
                               passenger-seat
                               configuration of less
                               than 20 seats and a
                               payload capacity of less
                               than 6,000 pounds to be
                               consistent with the
                               existing Sec.   119.23.
Sec.   119.5 Certifications,  Section 119.5 is revised   Enabling.
 authorizations, and           to incorporate powered-
 prohibitions.                 lift with seating for 20
                               or more passengers or a
                               maximum payload capacity
                               of 6,000 pounds or more
                               into the aircraft types
                               authorized by the
                               Administrator to be
                               issued an operating
                               certificate for
                               conducting operations
                               when common carriage is
                               not involved.
------------------------------------------------------------------------
     PART 119--CERTIFICATION: AIR CARRIERS AND COMMERCIAL OPERATORS
Subpart B--Applicability of Operating Requirements to Different Kinds of
         Operations Under Part 121, 125, and 135 of This Chapter
------------------------------------------------------------------------
Sec.   119.21 Commercial      Section 119.21(a) is       Imposes
 operators engaged in          revised to require         requirements
 intrastate common carriage    commercial operators of    on certain
 and direct air carriers.      powered-lift that are      operators of
                               engaged in intrastate      powered-lift
                               common carriage of         that are
                               persons or property for    equivalent to
                               compensation or hire, or   the
                               as a direct air carrier,   requirements
                               to comply with either      currently
                               part 121 or part 135       imposed on
                               depending on the kind of   operators
                               operation they conduct.    conducting
                               Domestic, flag, and        similar
                               supplemental operations    operations
                               are to be conducted        with airplanes
                               under part 121. Commuter   or rotorcraft.
                               and on-demand operations  No additional
                               are to be conducted        regulatory
                               under part 135.            cost.
Sec.   119.23 Operators       Section 119.23(a) is       Imposes
 engaged in passenger-         revised to require         requirements
 carrying operations, cargo    commercial operators of    on certain
 operations, or both with      powered-lift when common   operators of
 airplanes when common         carriage is not involved   powered-lift
 carriage is not involved.     to comply in accordance    that are
                               with requirements in       equivalent to
                               either part 125 or part    the
                               135. Aircraft size in      requirements
                               terms of number of seats   currently
                               and payload capacity       imposed on
                               determines which part is   operators
                               applicable to the          conducting
                               operator.                  similar
                                                          operations
                                                          with
                                                          airplanes.
                                                         No additional
                                                          regulatory
                                                          cost.
Sec.   119.49 Contents of     The regulatory text        Relieving.
 operations specifications.    replaces the requirement
                               for a certificate
                               holder's operations
                               specifications to
                               contain copies of all
                               deviations and
                               exemptions (including
                               those applicable to a
                               specific aircraft) with
                               a requirement to include
                               deviations and
                               exemptions applicable
                               only to the person
                               conducting the
                               operation.
Sec.   119.65 Management      The rule requires          Potential cost
 personnel required for        certificate holders have   only if a
 operations conducted under    a Chief Pilot, as          certificate
 part 121 of this chapter.     qualified under Sec.       holder uses
                               119.67, for each           powered-lift
                               category of aircraft the   and airplanes
                               certificate holder uses.   to conduct
                              The rule continues to       operations and
                               permit the Administrator   the Chief
                               to approve positions or    Pilot is not
                               numbers of positions       dual
                               other than those           qualified.
                               described in the
                               regulation, based in
                               part on the number and
                               type of aircraft used.
Sec.   119.67 Management      Director of Operations:    Imposes
 personnel: Qualifications    The regulatory text for     requirements
 for operations conducted      the part 121 certificate   on operators
 under part 121 of this        holder Director of         of powered-
 chapter.                      Operations management      lift that are
                               position is restructured   equivalent to
                               for clarity. It also       the
                               replaces the term          requirements
                               ``airplane'' with          currently
                               ``aircraft.''              imposed on
                              Chief Pilot: The            certificate
                               regulatory text is         holders that
                               restructured for clarity   use airplanes.
                               and replaces               No additional
                               ``airplanes'' with         regulatory
                               ``aircraft,'' which        cost.
                               encompasses airplanes
                               and powered-lift. The
                               amendment also requires
                               the holder(s) of the
                               Chief Pilot position for
                               a part 121 certificate
                               holder to have an
                               airline transport pilot
                               (ATP) certificate, with
                               appropriate ratings, for
                               at least one of the
                               aircraft within each
                               category of the
                               certificate holder's
                               fleet. Similarly, the
                               Chief Pilot will need
                               the Pilot in Command
                               time as the current
                               regulation states.
                              Director of Maintenance:
                               The regulatory text
                               replaces ``airplanes''
                               with ``aircraft,'' which
                               encompasses airplanes
                               and powered-lift.
                              Chief Inspector: The
                               regulatory text is
                               restructured for clarity
                               and replaces
                               ``airplanes'' with
                               ``aircraft,'' which
                               encompasses airplanes
                               and powered-lift.
------------------------------------------------------------------------
   PART 121--OPERATING REQUIREMENTS; DOMESTIC, FLAG, AND SUPPLEMENTAL
                               OPERATIONS
                           Subpart A--General
------------------------------------------------------------------------
Sec.   121.1 Applicability..  The regulatory text        Imposes
                               replaces ``airplanes''     requirements
                               with ``aircraft'' that     on operators
                               certificate holders        of powered-
                               would take actions to      lift that are
                               support continued          equivalent to
                               airworthiness of each      the
                               aircraft, which includes   requirements
                               powered-lift used in       currently
                               domestic, flag, or         imposed on
                               supplemental operations    certificate
                               as defined in Sec.         holders that
                               110.2.                     use airplanes.
                                                          No additional
                                                          regulatory
                                                          cost.

Sec.   121.1(c)               The regulatory text makes  No impact--
 Applicability.                a technical correction     technical
                               to Sec.   121.1(c) by      amendment.
                               removing ``SFAR No. 58''
                               and replacing it with
                               ``subpart Y'' which was
                               codified on September
                               16, 2005.
------------------------------------------------------------------------
   PART 121--OPERATING REQUIREMENTS; DOMESTIC, FLAG, AND SUPPLEMENTAL
                               OPERATIONS
   Subpart Q--Flight Time Limitations and Rest Requirements: Domestic
                               Operations
------------------------------------------------------------------------
Sec.   121.470 Applicability  The regulatory text of     Provides
                               paragraph (a) replaces     options to
                               ``airplanes'' with         certificate
                               ``aircraft'' to permit     holders using
                               certificate holders        powered-lift
                               using powered-lift in      in operations
                               domestic, all-cargo        under part 121
                               operations of a certain    that are
                               size, to adhere to the     equivalent to
                               requirements of Sec.       the options
                               Sec.   135.261 through     currently
                               135.272. These             allowed. No
                               requirements set forth     additional
                               flight time limitations    regulatory
                               and rest requirements.     cost.
                               In addition, paragraph
                               (b) permits certificate
                               holders that conduct
                               scheduled operations
                               entirely within Alaska
                               or Hawaii using specific
                               size aircraft to have
                               the option of complying
                               with subpart R of part
                               121 for those
                               operations.
------------------------------------------------------------------------
   PART 121--OPERATING REQUIREMENTS; DOMESTIC, FLAG, AND SUPPLEMENTAL
                               OPERATIONS
     Subpart R--Flight Time Limitations and Rest Requirements: Flag
                               Operations
------------------------------------------------------------------------
Sec.   121.480 Applicability  The regulatory text        Provides
                               replaces ``airplanes''     options to
                               with ``aircraft'' to       certificate
                               permit certificate         holders using
                               holders using powered-     powered-lift
                               lift in flag, all-cargo    in operations
                               operations, and            under part 121
                               operations of a certain    that are
                               size to adhere to the      equivalent to
                               requirements of Sec.       the options
                               Sec.   135.261 through     currently
                               135.273. These             allowed. No
                               requirements set forth     additional
                               flight time limitations    regulatory
                               and rest requirements.     cost.
------------------------------------------------------------------------
   PART 121--OPERATING REQUIREMENTS; DOMESTIC, FLAG, AND SUPPLEMENTAL
                               OPERATIONS
 Subpart S--Flight Time Limitations and Rest Requirements: Supplemental
                               Operations
------------------------------------------------------------------------
Sec.   121.500 Applicability  The regulatory text        Provides
                               replaces ``airplanes''     options to
                               with ``aircraft'' to       certificate
                               permit certificate         holders using
                               holders using powered-     powered-lift
                               lift in supplemental,      in operations
                               all-cargo operations, of   under part 121
                               a certain size, to         that are
                               adhere to the              equivalent to
                               requirements of Sec.       the options
                               Sec.   135.261 through     currently
                               135.273. These             allowed. No
                               requirements set forth     additional
                               flight time limitations    regulatory
                               and rest requirements.     cost.
------------------------------------------------------------------------
    PART 125--CERTIFICATION AND OPERATIONS: AIRCRAFT HAVING A SEATING
CAPACITY OF 20 OR MORE PASSENGERS OR A MAXIMUM PAYLOAD CAPACITY OF 6,000
   POUNDS OR MORE; AND RULES GOVERNING PERSONS ON BOARD SUCH AIRCRAFT
------------------------------------------------------------------------
Sec.   125.1 Applicability..  Part 125 applies only to   Imposes
                               operations when common     requirements
                               carriage is not involved   on operators
                               conducted with airplanes   conducting
                               that have a seating        operations
                               configuration of 20 or     with powered-
                               more passengers or a       lift that are
                               maximum payload capacity   equivalent to
                               of 6,000 pounds or more.   the
                               The rule amends Sec.       requirements
                               125.1 to incorporate       currently
                               powered lift into the      imposed on
                               statements regarding       operators
                               applicability of part      conducting
                               125.                       operations
                                                          with
                                                          airplanes. No
                                                          additional
                                                          regulatory
                                                          cost.
Sec.   125.23 Rules           This rule also amends      Imposes
 applicable to operations      Sec.   125.23 to change    requirements
 subject to this part.         the word ``airplane'' to   on operators
                               ``aircraft,'' as Sec.      conducting
                               125.23 generally           operations
                               addresses applicability    with powered-
                               of certain rules and       lift and
                               standards concerning       rotorcraft
                               operations.                that are
                                                          equivalent to
                                                          the
                                                          requirements
                                                          currently
                                                          imposed on
                                                          operators
                                                          conducting
                                                          operations
                                                          with
                                                          airplanes. No
                                                          additional
                                                          regulatory
                                                          cost.
------------------------------------------------------------------------
  PART 136--COMMERCIAL AIR TOURS AND NATIONAL PARKS AIR TOUR MANAGEMENT
              Subpart A--National Air Tour Safety Standards
------------------------------------------------------------------------
Sec.   136.1 Applicability    This change incorporates   Enabling.
 and definitions.              powered-lift into part
                               136 and changes
                               ``helicopter'' to
                               ``rotorcraft'' in
                               several definitions.
                               This change also
                               provides relief to the
                               definition of suitable
                               landing area for
                               rotorcraft..
Sec.   136.3 Letters of       The change is a technical  No impact--
 Authorization.                amendment that changes     technical
                               the phrase ``14 CFR        amendment.
                               119.51'' to ``Sec.
                               119.51 of this chapter''
Sec.   136.5 Additional       The amendment is updated   No impact--
 requirements for Hawaii.      to reflect the             technical
                               recodification of          amendment.
                               appendix A as subpart D.
Sec.   136.9 Life preservers  The change is a technical  No impact--
 for operations over water.    amendment to Sec.          technical
                               136.9 from ``airplane      amendment.
                               flight manual or
                               rotorcraft flight
                               manual'' to ``aircraft
                               flight manual''.

Sec.   136.11 Rotorcraft      The section title and      Enabling--no
 floats for over water.        this section are revised   impact over
                               to extend to all           and above
                               rotorcraft the             current
                               requirements for           requirements.
                               helicopter floats for
                               operations that occur
                               overwater beyond the
                               shoreline.
Sec.   136.13 Performance     The section title and      Enabling--no
 plan and operations.          this section are revised   impact over
                               to extend requirements     and above
                               for helicopter             current
                               performance plans to       requirements.
                               rotorcraft. The
                               performance plan must be
                               based on information in
                               the approved Aircraft
                               Flight Manual for that
                               aircraft.
Subpart D--Special Operating  This amendment recodifies  Enabling--no
 Rules for Air Tour            ``appendix A'' as          impact over
 Operators in the State of     ``subpart D'' and          and above
 Hawaii.                       extends the                current
                               applicability of           requirements.
                               operating rules for Air
                               Tour Operators in the
                               State of Hawaii to
                               include operations
                               conducted with powered-
                               lift and rotorcraft.
------------------------------------------------------------------------

1. Benefits
    This rule enables air carrier and other commercial operations of
powered-lift by extending applicability of the appropriate set of
operating rules that would serve as both a risk mitigation measure and
a framework for FAA oversight, as necessary to ensure the requisite
level of safety.
    Powered-lift operations could offer many benefits. For example,
some powered-lift may be capable of transporting heavier loads at
higher altitudes and faster cruise speeds than helicopters, while
maintaining the capability of taking off and landing vertically. The
faster cruise speeds could improve response times by as much as 50
percent for search and rescue operations and allow a higher level of
life-saving care during transport because of a smoother flight profile
compared to helicopters.\14\ In addition, powered-lift operations could
increase the efficiency of crew transport to oil rigs as they move
further from land, or other locations with smaller landing areas.
Certificate holders may also seek to use powered-lift for transporting
passengers point-to-point; for example, transportation could occur from
a heliport and proceed at turbo-prop airspeeds and ranges. Using
powered-lift for transport of passengers could increase the capacity of
the NAS and reduce delays without requiring additional
infrastructure.\15\
---------------------------------------------------------------------------

    \14\ Military, GLOBALSECURITY.ORG (last visited August 22,
2022), available at https://www.globalsecurity.org/military/world/europe/aw609.htm.
    \15\ Costa, Guillermo J., Conceptual Design of a 150-Passenger
Civil Tiltrotor, NASA Ames Research Center--Aeromechanics Branch
(Aug. 2012), (last visited August 22, 2022) available at https://rotorcraft.arc.nasa.gov/Publications/files/Guillermo_Costa_TR150_Paper.pdf.
---------------------------------------------------------------------------

    Powered-lift projects exist that are either in certification,
design, proof of concept, or prototype phases of design refinement. One
project underway is a 9-passenger tilt-rotor turboshaft design. This
manufacturer is also in the conceptual design phase of a 20-passenger
powered-lift. Another powered-lift project underway is seeking to
become the first certificated electric Vertical Takeoff and Landing
(eVTOL) operator under part 119 to carry passengers in the United
States.
2. Costs and Costs Savings
Cost Savings--Operations Specifications
    The FAA amends provisions in Sec. Sec.  119.49(a)(12), (b)(12), and
(c)(11) and 91.1015(b)(9) as the FAA has determined they are broad and
unduly burdensome. Currently, these provisions require a certificate
holder's operations specifications to contain a list of exemptions and
deviations issued under 14 CFR chapter 1 that are applicable to the
aircraft, the operator, and airmen. The rule requires only exemptions
and deviations that apply to the certificate holder (rather than to the
aircraft) to be retained in operations specifications. Although the
amendment to these provisions is relieving, the costs savings are
minimal because the operations specifications are maintained
electronically.
Costs--Part 121 Chief Pilot Management Position
    This rulemaking expands the part 119 certificate holder
requirements for the part 121 management position of Chief Pilot (Sec.
119.65). As amended, the certificate holder is required to have a Chief
Pilot for each category of aircraft used by the certificate holder to
conduct operations. Currently, the Chief Pilot is required to have an
ATP certificate, with appropriate ratings, for at least one of the
airplanes used in the certificate holder's operations. While one person
could meet the requirements of the Chief Pilot, this person would have
to be dual qualified in airplanes and powered-lift. Consequently, a
certificate holder conducting operations with airplanes and powered-
lift may have an increase in costs if more than one Chief Pilot is
hired to meet the qualification requirements.
    Should a certificate holder operating under part 121 choose to
conduct operations with airplanes and powered-lift, the incremental
cost to meet the Chief Pilot qualification requirements would be
minimal because the individual(s) acting in this position could also
serve as a line pilot. The FAA determines that certificate holders
operating under part 121 that choose to conduct operations with
powered-lift would do so only if the benefits of conducting the
operations exceeded its costs.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980, (5 U.S.C. 601-612),
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.
    The FAA published an Initial Regulatory Flexibility Analysis (IRFA)
in the proposed rule and determined that the proposal would not result
in a significant economic impact on a substantial number of small
entities. The FAA requested public comment regarding this
determination. The FAA did not receive comments from the public
regarding this determination, nor were comments to the proposed rule
filed by Chief Counsel for Advocacy of the Small Business
Administration (SBA).
    The final rule may impact small entities but will have a minimal
economic impact as the final rule is enabling while imposing minimal
costs.

First and foremost, the final rule changes definitions contained in
Sec.  110.2 and the appropriate applicability of sections within part
119 to enable powered-lift to conduct air carrier and other certain
commercial operations, commercial air tours and operations not
involving common carriage. Absent this final rule, an air carrier
desiring to conduct operations using powered-lift would not be able to
comply with the requirements of 49 U.S.C. 44701(d) or 44705. Such
operations, therefore, would be prohibited in the absence of this final
rule.
    Secondly, the final rule removes the requirement for a certificate
holder to maintain a list of exemptions and deviations related to
aircraft in its fleet as required by Sec. Sec.  119.49(a)(12), (b)(12),
and (c)(11) and 91.1015(a)(9). The impact could provide minimal relief
for certificate holders by reducing the volume of records certificate
holders must retain in their operations specifications.
    Lastly, due to a change in the definitions contained in 14 CFR
110.2, this final rule enables part 121 certificate holders to conduct
operations using powered-lift. As a result, the final rule revises part
121 certificate holder management qualifications for the Chief Pilot.
Current regulations require Chief Pilots to have an ATP certificate for
at least one of the airplanes used in a certificate holder's
operations. The regulations will require the certificate holder to have
a Chief Pilot qualified for each category of aircraft that the
certificate holder uses.
    As stated in the proposed rule, the FAA determines that the
expansion of the qualifications for the position of Chief Pilot
resulting from enabling additional aircraft categories to conduct part
121 operations imposes a minimal economic impact for part 121
certificate holders. Considering that this rulemaking is enabling, a
part 121 certificate holder will voluntarily choose to operate a fleet
of more than one aircraft category only if the expected benefits of
doing so exceed the costs.
    If an agency determines that a rulemaking would 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
Regulatory Flexibility Act. Therefore, as provided in section 605(b),
the head of the FAA certifies that this rulemaking would not result in
a significant economic impact on a substantial number of small
entities.

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 analyzed this rule in conjunction with the requirements
of the Trade Agreements Act of 1979, as amended by the Uruguay Round
Agreements Act. The FAA has determined the rule does not present any
obstacle to foreign commerce of the United States. In addition, the
rule is not contrary to international standards.

D. Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
governs the issuance of Federal regulations that require unfunded
mandates. An unfunded mandate is a regulation that requires a State,
local, or Tribal government or the private sector to incur direct costs
without the Federal Government having first provided the funds to pay
those costs. The FAA determined that this final rule will not result in
the expenditure of $177 million or more by State, local, or Tribal
governments, in the aggregate, or the private sector, in any one year.

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.
    The Office of Management and Budget previously approved the FAA's
collection of information affiliated with this rule.\16\ None of the
information collection instruments will change due to this rule,
however, the number of respondents to whom the information collection
requirements apply may increase. The FAA will continue to collect the
necessary information in the same manner as described in its prior
notices concerning the information collections.
---------------------------------------------------------------------------

    \16\ Certification: Air Carriers and Commercial Operators,
Supporting Statement: Information Collection Request Reference No.
2120-0593 (April 19, 2021), available at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202011-2120-001.
---------------------------------------------------------------------------

    Each section below identifies the information collections affected
by this rule. The FAA has estimated the increase in the existing burden
based on four-part 119 certificate holders beginning part 135
operations with powered-lift by the end of the third year following
publication of the final rule.\17\ While this rule allows part 119
certificate holders to conduct operations under part 121, the FAA does
not believe that any such certificate holders would do so in the first
three years following adoption of the rule. Therefore, the FAA has not
estimated any burden increase for existing information collection 2120-
0008 (Part 121 Operating Requirements: Domestic, Flag, and Supplemental
Operations). Further, the FAA does not believe that any such
certificate holders would conduct operations under part 125 in the
first three years following adoption of this rule. Therefore, the FAA
has not estimated any burden increase for existing information
collection 2120-0085 (Certification and Operations: Airplanes Having a
Seating Capacity of 20 or More Passengers or a Maximum Payload Capacity
of 6,000 Pounds or More).
---------------------------------------------------------------------------

    \17\ Official FAA forecasts related to the operation of powered-
lift in the National Airspace System (NAS) have yet to be developed.
As of July 2022, approximately 10 applicants were undergoing type
certification at FAA for powered-lift projects. Two of these
projects have progressed further through the approval process and
could be issued a type certificate as early as 2024. For purposes of
estimating the increase in the existing information collection, it
is determined four-part 119 certificate holders will begin part 135
operations with powered-lift by the end of the third year following
adoption of this rule. Publicly available data was used to forecast
the powered-lift fleet. Forecasts for airmen and departures were
developed based on utilization of the fleet (i.e., hours flown).
---------------------------------------------------------------------------

1. Revision of Existing Information Collection 2120-0593: Federal
Aviation Regulation part 119--Certification: Air Carriers and
Commercial Operators \18\
---------------------------------------------------------------------------

    \18\ Ibid.
---------------------------------------------------------------------------

    Summary: This rule would extend the requirements of part 119 to
certificate holders that conduct operations with powered-lift.

    Public Comment: There were no comments submitted to the notice of
proposed rulemaking concerning this information collection.
    Use: Organizations that desire to become or remain certified as air
carriers or commercial operators are mandated to report information to
the FAA. The information collected reflects requirements necessary
under parts 135, 121, and 125 to conform to 14 CFR part 119--
Certification: Air Carriers and Commercial Operators. The FAA will use
the information it collects and reviews to ensure compliance and
adherence to regulations and, if applicable, to take enforcement action
on violators of the regulations.
    The FAA has estimated the increase in the existing burden based on
four certificate holders beginning powered-lift operations by the end
of the third year following adoption of this rule.\19\ Note that not
all information collection requirements are expected to increase as a
result of the revision to this information collection.
---------------------------------------------------------------------------

    \19\ This burden is based on work performed by technical
specialists and/or administrative assistants. The fully-burdened
hourly wage used to estimate costs includes the base hourly wage for
each job category plus an increase to account for fringe benefits
and overhead. The base hourly wage for the technical specialist and
administrative assistant is estimated to be $20.95 and $15.95,
respectively (source: https://www.payscale.com/research/US/Job=Technical_Specialist/Salary; https://www.payscale.com/research/US/Job=Administrative_Assistant/Hourly_Rate). The base wage is
increased by a multiplier of 34.1 percent for fringe benefits
(source: https://www.bls.gov/news.release/ecec.nr0.htm) and 17.0
percent for overhead (source) Cody Rice, U.S. Environmental
Protection Agency, ``Wage Rates for Economic Analyses of the Toxics
Release Inventory Program'' June 10, 2002, https://www.regulations.gov/document?D=EPA-HQ-OPPT-2014-0650-0005. Summing
together the base hourly wage, fringe benefits, and overhead results
in a fully-loaded hourly wage of $32.21 for a technical specialist
and $24.51 for an administrative assistant.

              Table 3--Three-Year Burden Estimate for Information Collection 2120-0593 Certification: Air Carriers and Commercial Operators
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Time per        Time per
                                                                 Number of     Number of     Total      response--      response--      Total     Total
          Section                     Section title             respondents    responses   responses     technical     admin. asst.    burden    burden
                                                                                ($32.21/hr.)    ($24.51/hr.)    (hours)   (cost)
--------------------------------------------------------------------------------------------------------------------------------------------------------
119.33c....................  Proving Test Plan..............               4           1           4             2.0             1.0        12      $356
119.35.....................  Certificate Application Reqts--               4           1           4            80.0            16.0       384    11,876
                              all Operators.
119.36.....................  Certificate Application Reqts                 4           1           4             2.0             4.0        24       650
                              for Commercial Operators.
119.41c....................  Amending a Certificate.........               1           1           1             0.5             0.1       0.6        19
119.69e3...................  Management Personnel Required,                4           1           4             1.0             0.5         6       178
                              Part 135.
119.71f....................  Management Personnel                          4           1           4             1.0             0.5         6       178
                              Qualifications, Part 135.
                                                             -------------------------------------------------------------------------------------------
                             ...............................  ..............  ..........  ..........  ..............  ..............       433    13,256
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Column and row totals may not sum due to rounding.

2. Revision of Existing Information Collection 2120-0607: Pilot Records
Improvement Act of 1996/Pilot Records Database \20\
---------------------------------------------------------------------------

    \20\ Official FAA forecasts related to the operation of powered-
lift in the National Airspace System (NAS) have yet to be developed.
Thus, forecasts for operators of part 135 aircraft and fleet were
prepared solely for the purpose of estimating the cost of the
information collections affiliated with this rule, and developed
using publicly available data related to orders and options for
powered-lift. FAA notes that none of the orders for the multitude of
powered-lift aircraft models being developed are firm as of the time
of this writing, with the exception of one model. Using the fleet
forecast and an assumption for fleet utilization (i.e. hours flown),
forecasts for airmen and departures were also developed to estimate
costs of the paperwork burden.
---------------------------------------------------------------------------

    Summary: With the exception of Form 8060-14 and -15, an operator
utilizes the various 8060 forms to report a request for the applicable
records of all applicants for the position of pilot with their company
as needed under the Pilot Records Improvement Act (PRIA).
    Public Comment: There were no comments submitted to the notice of
proposed rulemaking concerning this information collection.
    Use: The information collected on these forms will be used only to
facilitate search and retrieval of the requested records, and
submission is mandatory until PRIA sunsets. Operators then ``may use
such records only to assess the qualification of the individual in
deciding whether or not to hire the individual as a pilot.'' (49 U.S.C.
44703(h)(11)). For purposes of this incremental information collection
the FAA expects pilots to access the pilot records database web-based
application to release records to operators for review and to update
employment history. In turn, the hiring operator uses the information
to help them perform a comprehensive assessment of the pilot prior to
making a hiring decision, as required by the Act.
    The FAA has estimated the increase in the existing burden for this
collection based on four part 119 certificate holders employing 129
commercial pilots holding an airmen's certificate in the powered-lift
category by the end of the third year following adoption of this rule.
Note that not all information collection requirements are expected to
increase as a result of the revision to this information collection.

      Table 4--Three-Year Burden Estimate for Information Collection 2120-0607 \21\ Pilot Records Database
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
                                                                            Year 1    Year 2    Year 3     Total
----------------------------------------------------------------------------------------------------------------
New Pilots..............................................................         0        44        85       129
Cumulative Pilots.......................................................         0        44       129  ........
----------------------------------------------------------------------------------------------------------------
Pilot activity--by event                              Events         Hrs    Year 1    Year 2    Year 3     Total
                                                    per year   per event     (hrs)     (hrs)     (hrs)     (hrs)
----------------------------------------------------------------------------------------------------------------
Database Registration--New Pilots...............         1.0        0.33         0      14.5      28.1      42.6
Input Employment History--New Pilots............         1.0        0.03         0       1.3       2.6       3.9
                                                 ---------------------------------------------------------------
    Total Time (Hours)..........................  ..........  ..........       0.0      15.8      30.7      46.5
----------------------------------------------------------------------------------------------------------------
Pilot Activity--by Cost                                             Cost    Year 1    Year 2    Year 3     Total
                                                                  per hr
----------------------------------------------------------------------------------------------------------------
Database Registration--New Pilots...........................      $46.28        $0      $671    $1,301    $1,972
Input Employment History--New Pilots........................       46.28         0        60       120       181
                                                 ---------------------------------------------------------------
    Total Cost..............................................  ..........         0       731     1,421     2,152
----------------------------------------------------------------------------------------------------------------
Operator Activity--by Event                           Events         Hrs    Year 1    Year 2    Year 3     Total
                                                    per year   per event     (hrs)     (hrs)     (hrs)     (hrs)
----------------------------------------------------------------------------------------------------------------
Training/checking events--Cumul. Pilots.........         2.7        0.07         0       8.3      24.4      32.7
Ground training events--Cumul. Pilots...........         1.0        0.07         0       3.1       9.0      12.1
Verification of NDR* Search--New Pilots.........         0.5        0.01         0       0.2       0.4       0.6
Initial train/check--New Pilots.................         1.0        0.07         0       3.1       6.0       9.1
                                                 ---------------------------------------------------------------
    Total Time (Hours)..........................  ..........  ..........         0      14.7      39.8      54.5
----------------------------------------------------------------------------------------------------------------
Operator Events--by Cost                                            Cost    Year 1    Year 2    Year 3     Total
                                                                  per hr
----------------------------------------------------------------------------------------------------------------
Training/checking events--Cumul. Pilots.....................      $91.33        $0      $758    $2,228    $2,986
Ground training events--Cumul. Pilots.......................       91.33         0       283       822     1,105
Verification of NDR* Search--New Pilots.....................       91.33         0        18        37        55
Initial train/check--New Pilots.............................       91.33         0       283       548     4,146
                                                 ---------------------------------------------------------------
    Total Cost..............................................  ..........         0     1,343     3,635     8,293
----------------------------------------------------------------------------------------------------------------
Note: Row and column totals may not sum due to rounding.

3. Revision of Existing Information Collection 2120-0535: Anti-Drug
Program for Personnel Engaged in Specified Aviation Activities \22\
---------------------------------------------------------------------------

    \21\ Occupational Employment and Wages, May 2019, 11-3121 Human
Resources Managers, Bureau of Labor Statistics, Mean Hourly Wage
Rate ($62.29). https://www.bls.gov/oes/2019/may/oes113121.htm. The
fully-burdened wage rate is $91.33 and includes employee
compensation that is related to fringe benefits and is estimated to
be 31.8 percent of the fully-burdened wage. Source: Bureau of Labor
Statistics, Employer Costs for Employee Compensation (https://www.bls.gov/news.release/pdf/ecec.pdf; data provided in news release
vary slightly by month). The FAA used a ground instructor base
hourly wage rate ($31.56) as a proxy for the pilot non-flying base
hourly wage rate (source: Bureau of Labor Statistics (BLS)
Occupational Employment Statistics for Air Transportation Industry).
https://www.bls.gov/oes/2019/may/oes131151.htm: Training and
Development Specialists (13-1151). The fully-burdened wage rate is
$46.28 and includes employee compensation related to benefits that
is estimated to be 31.8 percent of the fully-burdened wage. (Source:
Bureau of Labor Statistics, Employer Costs for Employee
Compensation.)
    \22\ Official FAA forecasts related to the operation of powered-
lift in the National Airspace System (NAS) have yet to be developed.
Thus, forecasts for operators of part 135 aircraft and fleet were
prepared solely for the purpose of estimating the cost of the
information collections affiliated with this rule, and developed
using publicly available data related to orders and options for
powered-lift. FAA notes that none of the orders for the multitude of
powered-lift aircraft models being developed are firm as of the time
of this writing, with the exception of one model. Using the fleet
forecast and an assumption for fleet utilization (i.e. hours flown),
forecasts for airmen and departures were also developed to estimate
costs of the paperwork burden.
---------------------------------------------------------------------------

    Summary: Part 119 certificate holders with the authority to operate
under parts 121 and 135, air tour operators as defined in 14 CFR
91.147, non-FAA or Military Air Traffic Control Facilities,
contractors, or repair stations under 14 CFR part 145 that conduct drug
and alcohol testing programs are mandated to report information to this
collection.
    Public Comment: There were no comments submitted to the notice of
proposed rulemaking concerning this information collection.
    Use: The FAA uses this information for determining program
compliance or non-compliance of regulated aviation employers, oversight
planning, determining who must provide a mandatory annual Management
Information System (MIS) testing information, and communicating with
entities subject to the program regulations. In addition, the
information is used to ensure that appropriate action is taken
regarding crewmembers and other safety-sensitive employees who have
tested positive for drugs or alcohol or have refused to submit to
testing. The collection includes reporting, recordkeeping, and
disclosure information. Using the information reported on the annual
MIS allows the FAA Administrator to determine the random testing rates
for the following year, which is published in the Federal Register.
    The FAA has estimated the incremental increase in the existing
burden for this collection based on four powered-lift operators
entering service by the end of the third year following adoption of
this rule. Below are the reporting requirements for this information
collection. Note that not all information collection requirements are
expected to increase as a result of the revision to this information
collection.

Table 5--Three-Year Burden Estimate for Information Collection 2120-0535 Anti-Drug Program for Personnel Engaged
                                        in Specified Aviation Activities
----------------------------------------------------------------------------------------------------------------
                                                           Time per    Total 3-Yr   Fully-burdened
             PRA task item                 Responses       response      burden       hourly wage     Total 3-Yr
                                         (three years)     (hours)      (hours)        ($25.33)      Burden  ($)
----------------------------------------------------------------------------------------------------------------
Promulgate Policy.....................                4        16.00         64.0            $25.33       $1,621
Registration (New or Amended).........                4         1.00          4.0             25.33          101
Supervisory Drug and Alcohol Training.                6         0.25          1.6             25.33           41
Employee Training Documentation.......              129         0.25         32.3             25.33          817
Reasonable Cause/Suspicion                          1.5         2.00          3.0             25.33           76
 Documentation........................
Voluntary Disclosure..................              1.0        40.00         40.0             25.33        1,013
Emergency Maintenance.................                1         1.25          1.3             25.33           32
Scientifically Valid Random Testing                  83         1.00         82.8             25.33        2,097
 Process..............................
Medical Review Officer Recordkeeping                  4         0.25          1.0             25.33           25
 Provision............................
                                       -------------------------------------------------------------------------
      Total Incremental Change for OMB              234  ...........        229.9  ................        5,823
       2120-0535......................
----------------------------------------------------------------------------------------------------------------
Note: Row and column totals may not sum due to rounding.

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 no differences with these regulations.

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 (NEPA) in the absence of extraordinary circumstances. The FAA has
determined this rulemaking action qualifies for the categorical
exclusion identified in paragraph 5-6.6f for regulations and involves
no extraordinary circumstances.

VI. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and
criteria of Executive Order 13132, Federalism. The FAA has determined
that this action will 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, will not have federalism
implications.

B. Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments

    Consistent with Executive Order 13175, Consultation and
Coordination with Indian Tribal Governments,\23\ and FAA Order 1210.20,
American Indian and Alaska Native Tribal Consultation Policy and
Procedures,\24\ the FAA ensures that Federally Recognized Tribes
(Tribes) are given the opportunity to provide meaningful and timely
input regarding proposed Federal actions that have the potential to
have substantial direct effects on one or more Indian Tribes, on the
relationship between the Federal Government and Indian Tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian Tribes; or to affect uniquely or significantly
their respective Tribes. At this point, the FAA has not identified any
unique or significant effects, environmental or otherwise, on Tribes
resulting from this final rule.
---------------------------------------------------------------------------

    \23\ 65 FR 67249 (Nov. 6, 2000).
    \24\ FAA Order No. 1210.20 (Jan. 28, 2004), available at https://www.faa.gov/documentLibrary/media/1210.pdf.
---------------------------------------------------------------------------

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

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

D. Executive Order 13609, Promoting International Regulatory
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 will have no
effect on international regulatory cooperation.

VII. Additional Information

A. Electronic Access and Filing

    A copy of the NPRM, all comments received, this final rule, and all
background material may be viewed online at https://www.regulations.gov
using the docket number listed above. A copy of this rule 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 https://www.federalregister.gov and the Government Publishing Office's website
at https://www.govinfo.gov. A copy may also be found at the FAA's
Regulations and Policies website at https://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 amendment number(s) of this
rulemaking.
    All documents the FAA considered in developing this final rule,
including economic analyses and technical reports, may be accessed in
the electronic docket for this rulemaking.

B. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of
1996 requires the FAA to comply with small entity requests for
information or

advice about compliance with statutes and regulations within its
jurisdiction. A small entity with questions regarding this document may
contact its local FAA official, or the person listed under the FOR
FURTHER INFORMATION CONTACT heading at the beginning of the preamble.
To find out more about SBREFA on the internet, visit https://www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects

14 CFR Part 91

    Air carrier, Air taxis, Air traffic control, Aircraft, Airmen,
Airports, Aviation safety, Charter flights, Reporting and recordkeeping
requirements, Transportation.

14 CFR Part 110

    Administrative practice and procedure, Air carriers, Aircraft,
Aviation safety, Charter flights, Reporting and recordkeeping
requirements.

14 CFR Part 119

    Administrative practice and procedure, Air carriers, Aircraft,
Aviation safety, Charter flights, Reporting and recordkeeping
requirements.

14 CFR Part 121

    Air carriers, Aircraft, Airmen, Aviation safety, Charter flights,
Reporting and recordkeeping requirements, Safety, Transportation.

14 CFR Part 125

    Aircraft, Airmen, Aviation safety, Reporting and recordkeeping
requirements.

14 CFR Part 136

    Air transportation, Aircraft, Aviation safety, National parks,
Recreation and recreation areas, Reporting and recordkeeping
requirements.

The Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends chapter I of title 14, Code of Federal
Regulations as follows:

PART 91--GENERAL OPERATING AND FLIGHT RULES

0
1. The authority citation for part 91 continues 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, Pub. L. 114-190, 130 Stat. 615 (49
U.S.C. 44703 note); articles 12 and 29 of the Convention on
International Civil Aviation (61 Stat. 1180), (126 Stat. 11).

0
2. Amend Sec.  91.146 by revising paragraphs (b) introductory text and
(b)(2), (3), (5), and (7) to read as follows:

Sec.  91.146  Passenger-carrying flights for the benefit of a
charitable, nonprofit, or community event.

* * * * *
    (b) Passenger-carrying flights in airplanes, powered-lift, or
rotorcraft for the benefit of a charitable, nonprofit, or community
event identified in paragraph (c) of this section are not subject to
the certification requirements of part 119 of this chapter or the drug
and alcohol testing requirements in part 120 of this chapter, provided
the following conditions are satisfied and the limitations in
paragraphs (c) and (d) of this section are not exceeded:
* * * * *
    (2) The flight is conducted from a public airport that is adequate
for the aircraft used, or from another location the FAA approves for
the operation;
    (3) The aircraft has a maximum of 30 seats, excluding each
crewmember seat, and a maximum payload capacity of 7,500 pounds;
* * * * *
    (5) Each aircraft holds a standard airworthiness certificate, is
airworthy, and is operated in compliance with the applicable
requirements of subpart E of this part;
* * * * *
    (7) Reimbursement of the operator of the aircraft is limited to
that portion of the passenger payment for the flight that does not
exceed the pro rata cost of owning, operating, and maintaining the
aircraft for that flight, which may include fuel, oil, airport
expenditures, and rental fees;
* * * * *

0
3. Amend Sec.  91.147 by revising paragraph (a) to read as follows:

Sec.  91.147  Passenger-carrying flights for compensation or hire.

* * * * *
    (a) For the purposes of this section and for drug and alcohol
testing, Operator means any person conducting nonstop passenger-
carrying flights in an airplane, powered-lift, or rotorcraft for
compensation or hire in accordance with Sec.  119.1(e)(2), Sec.
135.1(a)(5), or Sec.  121.1(d) of this chapter that begin and end at
the same airport and are conducted within a 25-statute mile radius of
that airport.
* * * * *

0
4. Amend Sec.  91.1015 by revising paragraph (a)(9) to read as follows:

Sec.  91.1015  Management specifications.

    (a) * * *
    (9) Any authorized deviation and exemption that applies to the
person conducting operations under this subpart; and
* * * * *

PART 110--GENERAL REQUIREMENTS

0
5. The authority citation for part 110 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40102, 40103,
40113, 44105, 44106, 44111, 44701-44717, 44722, 44901, 44903, 44904,
44906, 44912, 44914, 44936, 44938, 46103, 46105.

0
6. Amend Sec.  110.2 by revising the introductory text of the
definition of ``Commercial air tour'' and by revising the definitions
of ``Commuter operation'', ``Domestic operation'', ``Flag operation'',
``On-demand operation'', and ``Supplemental operation'' to read as
follows:

Sec.  110.2  Definitions.

* * * * *
    Commercial air tour means a flight conducted for compensation or
hire in an airplane, powered-lift, or rotorcraft where a purpose of the
flight is sightseeing. The FAA may consider the following factors in
determining whether a flight is a commercial air tour:
* * * * *
    Commuter operation means any scheduled operation conducted by any
person operating one of the following types of aircraft with a
frequency of operations of at least five round trips per week on at
least one route between two or more points according to the published
flight schedules:
    (1) Rotorcraft; or
    (2) Airplanes or powered-lift that:
    (i) Are not turbojet-powered;