[Federal Register Volume 87, Number 100 (Tuesday, May 24, 2022)]
[Rules and Regulations]
[Pages 31391-31416]
[FR Doc No: 2022-10367]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 43, 65, and 147

[Docket No.: FAA-2021-0237; Amdt. Nos. 43-52, 65-63, 147-9]
RIN 2120-AL67

Aviation Maintenance Technician Schools

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

ACTION: Interim final rule; request for comments.

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SUMMARY: This final rule establishes regulations that conform with the
Aircraft Certification, Safety, and Accountability Act, which sets
forth statutory requirements to implement regulations for maintenance
technician training. Consistent with the statute, this final rule
adopts new requirements for issuing aviation maintenance technician
school (AMTS) certificates and associated ratings and the general
operating rules for the holders of those certificates and ratings.

DATES: This rule is effective September 21, 2022, except for amendatory
instructions 6 and 9, which are effective August 1, 2023. Comments must
be received on or before June 23, 2022. The incorporation by reference
of certain publications listed in this rule is approved by the Director
of the Federal Register as of September 21, 2022.

ADDRESSES: You may send comments identified by docket number FAA-2021-
0237 using any of the following methods:
     Federal eRulemaking Portal: Go to www.regulations.gov and
follow the online instructions for sending your comments
electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to www.regulations.gov, as described in the system
of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
www.regulations.gov at any time. Follow the online instructions for
accessing the docket or visit Docket Operations in Room W12-140 of the
West Building Ground Floor at 1200 New Jersey Avenue SE, Washington,
DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this action, contact Tanya Glines, Aircraft Maintenance Division,
Federal Aviation Administration, 800 Independence Avenue SW,
Washington, DC 20591; telephone<PHONE_NUMBER>; email
[email protected].

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules on aviation safety is found in
Title 49 of the United States Code. Subtitle I, Section 106 describes
the authority of the FAA Administrator. Subtitle VII, Aviation
Programs, describes in more detail the scope of the agency's authority.
    This rulemaking is promulgated under the authority described in
Title 49, Subtitle VII, Part A, Subpart I, Chapter 401, Section 40113
(prescribing general authority of the Administrator of the FAA, with
respect to aviation safety duties and powers, to prescribe
regulations); and Subpart III, Chapter 447, Sections 44701 (general
authority of the Administrator to prescribe regulations and minimum
standards in the interest of safety for inspecting, servicing, and
overhauling aircraft, engines, propellers, and appliances, including
for other practices, methods, and procedures necessary for safety in
air commerce); 44702 (authority of the Administrator to issue air
agency certificates); 44703 (authority of the Administrator to issue
airman certificates); 44707 (authority of the Administrator to examine
and rate air agencies, including civilian schools giving instruction in
repairing, altering, and maintaining aircraft, aircraft engines,
propellers, and appliances, on the adequacy of instruction, the
suitability and airworthiness of equipment, and the competency of
instructors); and 44709 (authority of the Administrator to amend,
modify, suspend, and revoke air agency and other FAA-issued
certificates).
    This rule is further promulgated under Section 135 of the Aircraft
Certification, Safety, and Accountability Act in Public Law 116-260,
the Consolidated Appropriations Act of 2021. Section 135, titled
``Promoting Aviation Regulations for Technical Training,'' provides the
requirements and terms of this rule.

Good Cause for Immediate Adoption

    Section 553(b)(3)(B) of the Administrative Procedure Act (APA) (5
U.S.C.) authorizes agencies to dispense with notice and comment
procedures for rules when the agency, for ``good cause,'' finds that
those procedures are ``impracticable, unnecessary, or contrary to the
public interest.'' Under this section, an agency, upon finding good
cause, may issue a final rule without seeking comment prior to the
rulemaking.
    The FAA finds good cause under 5 U.S.C. 553(b)(3)(B) to waive prior
notice and the opportunity for public comment because such procedures
would be unnecessary and contrary to the public interest. On December
27, 2020, Congress passed the Consolidated Appropriations Act (Pub. L.
116-260), which includes the Aircraft Certification, Safety, and
Accountability Act (the ``Act''). In Section 135 of the Act, titled
``Promoting Aviation Regulations for Technical Training,''

Congress directed the FAA to issue interim final regulations to
establish requirements for issuing aviation maintenance technician
school (AMTS) certificates and associated ratings and the general
operating rules for the holders of those certificates and ratings.
Section 135(a)(1) of the Act expressly requires the FAA to issue the
interim final regulations in accordance with the requirements set forth
in Section 135. In this interim final rule, the FAA is simply adopting
the statutory language and implementing that language directly into the
regulations.\1\ Accordingly, the FAA finds it unnecessary to provide
notice and an opportunity to comment prior to issuing this final rule.
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    \1\ As explained herein, in order to achieve the statutory
objectives promulgated by the Act and ensure consistency between the
regulations and the statutory terminology, the FAA has made certain
revisions that are not expressly stated in the legislation.
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    The FAA further finds that delaying implementation of this rule to
allow for notice and comment would be contrary to the public interest.
Because the interim final rule must implement the statutory
requirements of Section 135 of the Act, the FAA does not have
discretion to propose requirements that are contrary to, or that exceed
the bounds of, the statute. Similarly, the FAA does not have the
discretion to change the statutory requirements based on public
comments received. Therefore, delaying issuance of this final rule
would merely delay the new requirements that Congress sought to provide
the AMTS industry.

Paperwork Reduction Act

    Affected parties are not required to comply with the information
collection requirements in Sec. Sec.  147.5, 147.15, 147.17, 147.21,
147.23, and 147.31, until the Office of Management and Budget (OMB)
approves the revised collection 2120-0040 under the Paperwork Reduction
Act of 1995. The FAA will publish in the Federal Register a notice of
approval by the Office of Management and Budget (OMB) for these
information collection requirements.

Comments Invited

    Consistent with the Regulatory Policies and Procedures of the
Department of Transportation (DOT) (44 FR 11034; February 26, 1979),
which provide that, to the maximum extent possible, operating
administrations for the DOT should provide an opportunity for public
comment on regulations issued without prior notice, the FAA requests
comment on this interim final rule. The FAA encourages persons to
participate in this rulemaking by submitting written comments
containing relevant information, data, or views. The FAA also invites
comments relating to the economic, environmental, energy, or federalism
impacts that might result from adopting this final rule. The FAA will
consider comments received on or before the closing date for comments.
The FAA will also consider late filed comments to the extent
practicable. This interim final rule may be amended based on comments
received.
    See section VI., titled ``How to Obtain Additional Information,''
for information on how to comment on this interim final rule and how
the FAA will handle comments received. This section also contains
related information about the docket, privacy, and the handling of
proprietary or confidential business information. In addition, there is
information on obtaining copies of related rulemaking documents.

List of Abbreviations and Acronyms Frequently Used in This Document

AMTS--Aviation maintenance technician school(s)
OpSpecs--Operations Specifications
The Act--the Aircraft Certification, Safety, and Accountability Act

Table of Contents

I. Overview of Interim Final Rule
II. Background
    a. History of Part 147
    b. Notice of Proposed Rulemaking (NPRM) and Supplemental Notice
of Proposed Rulemaking (SNPRM)
    c. Section 135, Promoting Aviation Regulations for Technical
Training
III. Discussion of the Interim Final Rule
    a. Applicability of New Part 147 (Sec.  147.1)
    b. AMTS Certification Required (Sec.  147.3)
    c. Certificate and Operations Specifications Requirements
    1. Application Requirements (Sec.  147.5)
    2. Duration (Sec.  147.7)
    3. Certificate Ratings (Sec.  147.11)
    4. Operations Specifications (OpSpecs)
    d. Certification and Operating Requirements (Subpart B)
    1. Facilities, Equipment, and Material Requirements (Sec.
147.13)
    2. Training Provided at Another Location (Sec.  147.15)
    3. Training Requirements (Sec.  147.17 and 1 CFR Part 51)
    A. Incorporation by Reference (1 CFR Part 51)
    B. Curriculum Requirements (Sec.  147.17(a)(1) and (b))
    C. Conforming Amendments To Incorporate the Mechanic ACS by
Reference (Sec. Sec.  65.23, 65.75, and 65.79)
    D. Remaining Training Requirements (Sec.  147.17(a)(2) and (3))
    4. Instructor Requirements (Sec.  147.19)
    5. Certificate of Completion (Sec.  147.21)
    e. Quality Control System Requirements (Sec.  147.23)
    1. Quality Control System: Accreditation (Sec.  147.23(a))
    2. Quality Control System: FAA-Approved System (Sec.  147.23(b))
    f. Additional Requirements (Subpart B)
    1. Minimum Passage Rate (Sec.  147.25)
    2. FAA Inspection (Sec.  147.27)
    3. Display of Certificate (Sec.  147.29)
    4. Early Testing (Sec.  147.31)
    g. Conforming Amendments
    1. Appendix A to Part 43
    2. Section 65.80
    h. Part 147 Rule Organization and Numbering
IV. Regulatory Notices and Analyses
V. Executive Order Determinations
VI. How To Obtain Additional Information

I. Overview of Interim Final Rule

    The Consolidated Appropriations Act (Pub. L. 116-260), which
includes the Act, was enacted on December 27, 2020. Section 135 of the
Act, titled ``Promoting Aviation Regulations for Technician Training,''
directed the FAA to ``issue interim final regulations to establish
requirements for issuing [AMTS] certificates and associated ratings and
the general operating rules for the holders of those certificates and
ratings in accordance with the requirements of [Section 135].''
Additionally, Section 135 of the Act states that current part 147 shall
have no force or effect on or after the effective date of the interim
final regulations.
    This interim final rule replaces the current regulations in part
147 with new regulations that conform to the legislation. In the
preamble to this interim final rule, the FAA reiterates the provisions
of Section 135 of the Act and explains how it is implementing those
provisions in the regulations. Additionally, the FAA is making
conforming amendments to parts 43 and 65 to effectuate the legislation.

II. Background

a. History of Part 147

    Part 147 prescribes the requirements for the certification and
operation of FAA-certificated AMTS, including the curriculum
requirements. Part 147 originated as Civil Air Regulations (CAR) part
53 in 1940.\2\ As a result of the recodification of the CARs in 1962,
CAR part 53 became 14 CFR part 147.\3\ In 1970, the FAA issued a final
rule that changed the name of ``mechanic schools'' to ``aviation
maintenance technician schools,'' provided more specific guidelines for
the certification

and operation of schools, increased the required core curriculum hours
from 1,500 to 1,900, and further defined teaching guidelines and
subject content to reflect technological advancements in the aviation
industry.\4\ In 1992, the FAA revised part 147 by adding a definition
in Appendix A for ``teaching materials and equipment'' to include the
use of computers in the training environment. The FAA also revised the
headings of several subjects in Appendices B, C, and D to better
reflect course content, added course content items within several
subject areas, and added two new subject headings with related course
content items for ``Unducted Fans'' and ``Auxiliary Power Units''.\5\
Subsequently, in 1992, the FAA made a minor amendment to Sec.  147.21
as part of another rulemaking.\6\ Specifically, the FAA added a
provision to Sec.  147.21 that allowed AMTSs to apply for and receive
approval of special courses in the performance of inspection and
maintenance on primary category aircraft, and authorized the school to
issue certificates of competency to persons successfully completing
such courses.\7\ There have been no further revisions to part 147.
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    \2\ Providing for the Rating and Certification of Civilian
Schools giving Instruction in Aircraft and Aircraft Engine
Mechanics; 5 FR 673 (Feb. 15, 1940) (amending the Civil Air
Regulations by adding new Part 53, effective May 1, 1940).
    \3\ Schools and Other Certificated Agencies; 27 FR 6655 (Jul.
13, 1962).
    \4\ Name, Operations, and Curriculum; 35 FR 5531 (Apr. 3, 1970).
    \5\ Revision of Aviation Maintenance Technician Schools
Regulations; 57 FR 28952 (Jun. 29, 1992).
    \6\ Primary Category; 57 FR 41360 (Sept. 9, 1992).
    \7\ 57 FR at 41366, 41370.
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b. Notice of Proposed Rulemaking (NPRM) and Supplemental Notice of
Proposed Rulemaking (SNPRM)

    On October 2, 2015, the FAA published an NPRM titled ``Aviation
Maintenance Technician Schools.'' \8\ In the NPRM, the FAA proposed to
amend the regulations governing the curriculum and operation of FAA-
certificated AMTSs. The FAA proposed to modernize and reorganize the
required curriculum subjects found in the appendices of the current
regulation, remove the course content items from the appendices and
relocate them to each school's OpSpecs, and revise the curriculum
requirements to include an option for schools to use a credit hour
curriculum. The comment period for the NPRM closed on December 31,
2015, which was subsequently extended to February 1, 2016, based on a
joint request for extension from several industry groups.\9\
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    \8\ 80 FR 59674.
    \9\ Aviation Maintenance Technician Schools; 80 FR 72404 (Nov.
19, 2015).
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    After considering the comments to the NPRM, and the potential
benefits to industry, the FAA decided to expand the scope of the
rulemaking by issuing an SNPRM, published on April 16, 2019.\10\ The
SNPRM proposed (1) to allow curriculum based training (CBT) programs as
a curriculum delivery, (2) to allow the establishment of satellite
training locations, and (3) to remove the national passing norm
requirements in Sec.  147.37 and replace them with a standard pass
rate. The comment period closed on June 17, 2019.
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    \10\ 83 FR 15533.
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c. Section 135, Promoting Aviation Regulations for Technical Training

    While the FAA was in the process of completing the final rule,
which would have responded to all significant comments received on the
NPRM and SNPRM, Congress passed the Act which required the FAA to
replace part 147, as in effect on the date of enactment of Section 135,
with new regulations that conform to the statutory requirements.
Congress directed the FAA to issue interim final regulations, not later
than 90 days after the date of enactment of the Act, to establish
requirements for issuing aviation maintenance technician school
certificates and associated ratings and the general operating rules for
the holders of those certificates and ratings.
    Pursuant to Section 135(a)(1) of the Act, the FAA must issue the
interim final regulations in accordance with the requirements set forth
in Section 135, including requirements addressing:
     When an AMTS certificate is required;
     Applications for AMTS certificates and associated ratings,
additional ratings, and changes to certificates;
     Operations specifications and the contents thereof;
     The duration of a certificate or rating issued under part
147;
     The ratings that an AMTS may obtain under part 147;
     AMTS facilities, equipment, and material;
     Training provided at another location;
     AMTS training and curricula;
     Instructors;
     Certificates of completion;
     Quality control systems;
     The minimum passage rate each school must maintain;
     FAA inspections;
     The display of part 147 certificates; and
     A student's ability to take the FAA's general written test
prior to satisfying the experience requirements of Sec.  65.77,
provided certain conditions are met.
    Additionally, the statute states that the current part 147
regulations and any regulations issued under Sec.  624 of the FAA
Reauthorization Act of 2018, shall have no force or effect on or after
the effective date of the interim final rule. As a result, this interim
final rule repeals and replaces current part 147.
    Upon review of Section 135, the FAA determined that the proposed
requirements in the NPRM and SNPRM were inconsistent with the statutory
mandate. Therefore, to comply with Section 135, the FAA is publishing a
Federal Register Notice withdrawing the NPRM (Notice No. 15-10) and
SNPRM (Notice No. 19-02) concurrent with this interim final rule.
Instead of finalizing those proposals, the FAA is issuing this interim
final rule to establish requirements for certificated AMTSs in
accordance with Section 135 of the Act.

III. Discussion of the Interim Final Rule

    Section 135(b) through (f) of the Act contain several requirements
that govern the certification and operation of AMTSs. The following
sections reiterate the provisions of Section 135 and describe how the
FAA is implementing each provision into new part 147. Additionally,
section III.g. of this preamble, titled ``Part 147 Rule Organization
and Numbering,'' provides tables to show which sections of current part
147 will be repealed and not replaced, which sections will be replaced
and renumbered, and the organization and numbering of new part 147.

a. Applicability of New Part 147 (Sec.  147.1)

    Section 135(a)(1) requires the FAA to establish requirements for
issuing AMTS certificates and associated ratings and the general
operating rules for the holders of those certificates and ratings in
accordance with the legislation. Based on this statutory provision, the
applicability outlined in Section 135 is consistent with the current
applicability provision in Sec.  147.1.\11\ Current part 147, including
the applicability provision, will be repealed in its entirety on the
effective date of this interim final rule, pursuant to Section
135(a)(2). However, consistent with Section 135(a)(1), new part 147
will continue to prescribe the requirements for issuing AMTS
certificates and associated ratings and the general operating rules for
the holders of those certificates and ratings.\12\ The FAA is
implementing the

applicability language of Section 135(a)(1) in new Sec.  147.1 to
specify the applicability of new part 147.
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    \11\ Current Sec.  147.1 states that ``[part 147] prescribes the
requirements for issuing aviation maintenance technician school
certificates and associated ratings and the general operating rules
for the holders of those certificates and ratings.''
    \12\ While the applicability of part 147 remains the same under
this interim final rule, the requirements in new part 147 differ
because the statute requires the FAA to establish requirements in
accordance with the statutory requirements set forth in Section 135.
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    Upon the effective date of this interim final rule, a currently
certificated AMTS may not continue to operate unless it meets all of
the applicable requirements of new part 147. A certificated AMTS will
not be able to use previous part 147 regulations because current part
147 shall have no force or effect on or after the effective date of the
interim final regulations. As such, it is essential for certificated
AMTSs to take the necessary steps to comply with new part 147 by the
effective date of the regulation.\13\
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    \13\ As discussed in greater detail herein, these steps include
curriculum revision to align with the Mechanic Airman Certification
Standards (ACS) and necessary updates to OpSpecs.
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    Further, many certificated AMTSs hold exemptions to existing part
147 and related part 65 regulations. Because current part 147 is wholly
repealed and replaced upon the effective date of the interim final
rule, these exemptions, which are specified and discussed herein, as
relevant, will terminate upon the effective date of this interim final
rule. However, the FAA notes that the vast majority of the grounds for
requested relief will be cured upon the effective date of this interim
final rule by new part 147.

b. AMTS Certification Required (Sec.  147.3)

    Section 135(b) states that no person may operate an AMTS without,
or in violation of, an AMTS certificate and the OpSpecs issued under
the interim final regulations required under Section 135(a)(1), the
requirements of Section 135, or in a manner that is inconsistent with
information in the school's OpSpecs under Section 135(c)(5). This
statutory requirement is similar to current Sec.  147.3, but extends
the requirement to OpSpecs in addition to AMTS certificates.
    The FAA is implementing the requirements of Section 135(b) in new
Sec.  147.3, which will state that no person may operate an AMTS
without, or in violation of, an AMTS certificate and the OpSpecs
``issued under [part 147].'' The FAA determined that it is unnecessary
for Sec.  147.3 to expressly state that a person may not operate in
violation of the requirements of Section 135, which will be implemented
in part 147, because a certificated AMTS must comply with applicable
statutory and regulatory requirements irrespective of whether the FAA
expressly prohibits non-compliance in Sec.  147.3. Furthermore, the FAA
is not codifying the portion of Section 135(b) that prohibits a school
from acting in a manner inconsistent with its OpSpecs because this
prohibition is redundant to the statement that prohibits schools from
operating in violation of their OpSpecs.
    Section 135(b) states, in pertinent part, that no person may
operate an AMTS in violation of the requirements of Section 135. This
would appear to indicate that the Administrator does not have the
authority to grant exemptions \14\ from new part 147 because the
inherent nature of an exemption would act as a departure from the
requirements of Section 135. However, within the legislation, Section
135(c) states that a certificated AMTS shall operate in accordance with
operations specifications that include, among other information, any
regulatory exemption granted to the school by the Administrator.
Additionally, the language in Section 135(b) echoes this sentiment of
compliance with regulatory exemptions, stating that no person may
operate an AMTS in a manner that is inconsistent with information in
the school's operations specifications under Section 135(c)(5), which,
as stated, includes regulatory exemptions. Therefore, the contemplation
of and requirements of compliance with regulatory exemptions in the
legislation demonstrates that Congress intended that the FAA retain the
authority to issue exemptions from part 147, as warranted under the
Administrator's authority and 14 CFR part 11.
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    \14\ The Administrator's authority to grant exemptions is
pursuant to 49 U.S.C. 40109(b).
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c. Certificate and Operations Specifications Requirements

    Section 135(c)(1) through (5) of the Act contain several
requirements that govern applications for certificates and ratings
under part 147, the duration of those certificates and ratings, the
types of ratings that may be issued on a certificate, and the content
of OpSpecs. The FAA is implementing the application, duration, and
rating requirements in subpart A of part 147, which is titled
``General.'' For the reasons discussed herein, the FAA is not codifying
the content requirements of OpSpecs in the regulations. The following
sections discuss the statutory requirements and the FAA's
implementation of those requirements in more detail.
1. Application Requirements (Sec.  147.5)
    Section 135(c)(1)(A) requires an application for a certificate or
rating to operate an AMTS to include three descriptions. First, the
application must describe the facilities, including the physical
address of the certificate holder's primary location for operation of
the school, any additional fixed locations where training will be
provided, and the equipment and materials to be used at each
location.\15\ Second, the application must describe the manner in which
the school's curriculum will ensure the student has the knowledge and
skills necessary for attaining a mechanic certificate and associated
ratings under subpart D of part 65.\16\ Third, the application must
describe the manner in which the school will ensure it provides the
necessary qualified instructors to meet the requirements of Section
135(d)(4).\17\ Upon issuance of the school's certificate or rating,
Section 135(c)(1)(B) requires these descriptions to be documented in
the school's OpSpecs.
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    \15\ Section 135(c)(1)(A)(i).
    \16\ Section 135(c)(1)(A)(ii).
    \17\ Section 135(c)(1)(A)(iii). As discussed in section III.d.4.
of this preamble, titled ``Instructor Requirements,'' the instructor
requirements of Section 135(d)(4) are being implemented in new Sec.
147.19. Accordingly, new Sec.  147.5(b)(3) includes a cross-
reference to Sec.  147.19.
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    Section 135 also contains requirements for a school seeking to add
a rating or amend a certificate. Specifically, Section 135(c)(2)(A)
requires an application for an additional rating or amended certificate
to include only the information necessary to substantiate the reason
for the requested additional rating or change. Section 135(c)(2)(B)
requires any approved changes to be documented in the school's OpSpecs.
    The FAA is implementing the application requirements of Section
135(c)(1) and (2) in new Sec.  147.5. Section 147.5(b) will contain the
requirements for an application for an initial certificate and rating.
Section 147.5(c) will contain the requirements for an application for
an additional rating or amended certificate. The language in Sec.
147.5(b) and (c) mirrors the statute except for one editorial change
and two minor terminology changes. First, in Sec.  147.5(b), the FAA is
making clear that the application requirements for initial
certification apply to an application for ``a certificate and rating''
rather than ``a certificate or rating.'' When a person applies for an
air agency certificate under part 147, that person must also apply for
at least one rating. Section 147.11 prescribes the ratings that a
school may obtain under part 147. The FAA may not issue a certificate
independent of a rating. Nor may the FAA issue a rating without an

underlying certificate. It is therefore accurate to state ``certificate
and rating'' in Sec.  147.5(b).\18\ Second, in Sec.  147.5(b)(1), the
FAA finds that the term ``applicant'' is appropriate rather than
``certificate holder'' because an applicant under Sec.  147.5(b)(1) is
applying for its initial AMTS certificate and rating. As such, the
applicant does not yet hold an air agency certificate under part 147.
Lastly, in Sec.  147.5(c), which applies to current certificate holders
seeking to add a rating or amend their certificate, the FAA is adding a
cross-reference to the information listed in Sec.  147.5(b) for clarity
and is using the word ``sought'' rather than ``requested.'' These minor
modifications from the statutory language do not alter the meaning or
affect the implementation of the statutory requirements.
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    \18\ The FAA notes that a school may apply for an additional
rating, which would be placed on the school's part 147 certificate.
Section 147.5(c) contains the application requirements for an
additional rating.
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    In codifying the statutory requirements of Section 135(c) in new
Sec.  147.5, the FAA discovered that Section 135 lacks an eligibility
standard for the issuance of an AMTS certificate. Under Section 44702
of Title 49 of the United States Code, the FAA has statutory authority
to issue air agency certificates. A certificate issued under part 147
is one of the air agency certificates issued by the FAA under 49 U.S.C.
44707. Section 135(c) prescribes only the content that must be included
in an application for a certificate and rating, or for an additional
rating or amended certificate. Section 135(c) is silent, however, with
respect to the eligibility standard an applicant must meet to be issued
a part 147 certificate. For example, merely providing descriptions of
the applicant's facilities, equipment, and materials on the application
for a certificate is not sufficient basis for the FAA to issue a
certificate. Those facilities, equipment, and materials must meet the
substantive requirements in Section 135 that require a school's
facilities, equipment, and materials to be ``appropriate'' to the
ratings held and the number of students taught. The FAA's decision to
issue a certificate should not be based solely on the fact that
descriptions were provided but rather on whether the descriptions in
the application demonstrate that the applicant is eligible to operate
as a certificated AMTS.
    The FAA reviewed Section 135 in its entirety to determine whether
another statutory provision contains the eligibility standard for
issuing a part 147 certificate. While the statute does not expressly
state what makes an applicant eligible for a certificate and rating,
Section 135(b) provides context for making the determination. Section
135(b) prohibits a person from operating as an AMTS in violation of the
requirements of Section 135. As discussed throughout this preamble, the
FAA is implementing the requirements of Section 135 in part 147.
Therefore, consistent with Section 135(b), a person may not operate as
an AMTS in violation of the requirements of part 147.
    Because an applicant seeking an AMTS certificate may not operate as
a certificated AMTS in violation of the requirements of part 147, the
FAA finds it reasonable to require the applicant to demonstrate
compliance with the requirements of part 147 to be issued a certificate
or rating under part 147. If the FAA does not assess whether an
applicant complies with the appropriate requirements of part 147 at the
application stage, the FAA could exercise its inspection authority to
determine compliance with the requirements of part 147 immediately upon
issuing the certificate or rating to the school.\19\ The FAA has
determined, however, that it is reasonable to require the applicant to
demonstrate compliance with the applicable requirements as a means of
determining eligibility for the issuance of a part 147 air agency
certificate.\20\ The FAA is codifying this standard in new Sec.
147.5(a) by expressly stating that, to be issued a certificate, an
applicant must demonstrate compliance with the requirements of part
147.
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    \19\ The FAA's inspection authority, which is prescribed by
Section 135(f)(2) and codified in Sec.  147.27, requires a
certificated AMTS to allow the FAA such access as the FAA determines
necessary to inspect the school for purposes of determining the
school's compliance with part 147. Thus, the FAA may conduct an
inspection at a certificated AMTS at any time after issuance of the
part 147 certificate and rating.
    \20\ See Sec.  141.5(c) (stating the FAA may issue a pilot
school certificate with the appropriate ratings if, within the 24
calendar months before the date application is made, the applicant
meets the applicable requirements under subparts A through C of part
141 for the school certificate and associated ratings sought); Sec.
142.11(d) (stating that an applicant who meets the requirements of
part 142 and is approved by the Administrator is entitled to a
training center certificate and training specifications); Sec.
145.53 (stating that, except as provided in Sec.  145.51(e) or Sec.
145.53(b), (c), or (d), a person who meets the requirements of
subparts A through E of part 145 is entitled to a repair station
certificate with appropriate ratings).
---------------------------------------------------------------------------

    To demonstrate compliance with certain requirements of part 147
pursuant to new Sec.  147.5(a), the applicant may be required to
present certain information to the FAA. To effectuate this, the FAA is
adding new Sec.  147.5(b)(4) to the application requirements. New Sec.
147.5(b)(4) requires the application to include any additional
information necessary to demonstrate compliance with the requirements
of part 147. This additional requirement is supported by the plain
language of the statute, which states that an application for a
certificate or rating to operate an AMTS shall ``include'' the
information listed in Section 135(c)(1)(A)(i) through (iii). In the
statutory context, the term ``include'' has been construed to provide
an illustration of the general concept, not an all-inclusive and
exhaustive list.\21\ As such, the application for a certificate or
rating must include the items prescribed by the statute; however, the
FAA is not limited to prescribing only those items.
---------------------------------------------------------------------------

    \21\ See Federal Land Bank of St. Paul v. Bismarck Lumber Co.,
314 U.S. 95, 100 (1941) (stating that ``the term ``including'' is
not one of all-embracing definition, but connotes simply an
illustrative application of the general principle.'').
---------------------------------------------------------------------------

    As previously stated, the FAA is codifying the requirements of
Section 135(c)(2), which apply to applications for an additional rating
or amended certificate, in new Sec.  147.5(c). Consistent with the
statute, new Sec.  147.5(c) will require an application for an
additional rating or amended certificate to include only the
information required by Sec.  147.5(b) that is necessary to
substantiate the reason for the additional rating or change sought. An
amended certificate would be required if any of the information on the
air agency certificate had changed, such as the name of the certificate
holder, the principal address of the certificate holder, or the removal
of a rating. The FAA notes that adding a rating would also require an
amendment to the air agency certificate, however, the statute expressly
states ``additional rating or amended certificate.'' The implementing
regulation reflects the statutory terminology.
    Section 135(c)(1)(B) and (2)(B) require certain content to be
included in OpSpecs: The descriptions required for an application and
any approved changes for an additional rating or amended certificate,
respectively. However, the FAA finds that these requirements do not
belong in the regulations because they govern the conduct of the FAA
rather than the regulated community. As a result, the FAA will not
codify these requirements in part 147. Instead, the FAA will include
guidance to its inspectors in FAA Order 8900.1 to ensure FAA's
compliance with these statutory requirements that govern the content of
OpSpecs.

2. Duration (Sec.  147.7)
    Section 135(c)(3) states that an AMTS certificate or rating issued
under the interim final regulations shall be effective from the date of
issue until the certificate or rating is surrendered, suspended, or
revoked. This statutory requirement is largely consistent with the
FAA's current duration requirement in Sec.  147.7(a). However, unlike
current Sec.  147.7(b), the statute does not require the holder of a
certificate that is surrendered, suspended, or revoked to return it to
the Administrator.
    The FAA is implementing the requirements of Section 135(c)(3) in
new Sec.  147.7. Thus, Sec.  147.7 states that an AMTS certificate or
rating issued under part 147 is effective from the date of issue until
the certificate or rating is surrendered, suspended, or revoked.
Because the statute requires the FAA to establish interim final
regulations in accordance with the requirements of Section 135, Sec.
147.7 will no longer include a requirement for the return of an AMTS
certificate that has been surrendered, suspended or revoked. However,
the FAA notes that a school that does not return its certificate may
not continue to operate simply because it has the physical paper
certificate. A school whose certificate has been surrendered,
suspended, or revoked may not advertise, hold out, or otherwise act as
an AMTS.
3. Certificate Ratings (Sec.  147.11)
    Section 135(c)(4) states that an AMTS certificate shall specify
which of following ratings are held by the AMTS: (A) Airframe, (B)
Powerplant, and/or (C) Airframe and Powerplant.
    An AMTS certificate has always identified which rating or ratings
the AMTS holds. Because the FAA is responsible for issuing the
certificate, it follows that the FAA is responsible for specifying on
the certificate which rating or ratings the AMTS is issued under part
147. By mandating what the AMTS certificate must specify, Section
135(c)(4) governs the conduct of the FAA rather than the regulated
community. The FAA finds it necessary to codify the ratings that may be
placed on a certificate in accordance with Section 135(c)(4); however,
the FAA's regulations in part 147 apply to persons seeking AMTS
certificates and to AMTS certificate holders. Therefore, in
implementing Section 135(c)(4) in new Sec.  147.11, the FAA is slightly
revising the statutory language to allocate applicability to the
regulated community instead of the FAA itself. Accordingly, new Sec.
147.11 states which ratings may be issued under part 147, and that the
FAA issues AMTS certificates that specify the rating or ratings held in
compliance with the statute.
4. Operations Specifications (OpSpecs)
    Section 135(c)(5) requires a certificated AMTS to operate in
accordance with OpSpecs that include: (A) The certificate holder's
name; (B) the certificate holder's air agency certificate number; (C)
the name and contact information of the certificate holder's primary
point of contact; (D) the physical address of the certificate holder's
primary location; \22\ (E) the physical address of any additional
location of the certificate holder; \23\ (F) the ratings held; \24\ and
(G) any regulatory exemption granted to the school by the
Administrator.
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    \22\ Section 135(c)(5)(D) states ``[t]he physical address of the
certificate holder's primary location, as provided under paragraph
(1)(A).'' The reference to paragraph (1)(A) refers to the
application requirements contained in Section 135(c)(1)(A)(i), which
require the application to include a description of the facilities,
including the physical address of the certificate holder's primary
location for operation of the school. The FAA is implementing the
requirements of Section 135(c)(1)(A)(i) in new Sec.  147.5(b)(1).
    \23\ Section 135(c)(5)(E) states ``[t]he physical address of any
additional location of the certificate holder, as provided under
subsection (d)(2).'' The reference to subsection (d)(2) refers to
Section 135(d)(2), which allows a certificated AMTS to provide
training at any additional location that meets the requirements of
the interim final rule and is listed in the school's OpSpecs. The
FAA is implementing the requirements of Section 135(d)(2) in new
Sec.  147.15.
    \24\ Section 135(c)(5)(F) states ``[t]he ratings held, as
provided under paragraph (4).'' The reference to paragraph (4)
refers to Section 135(c)(4), which prescribes the ratings that may
be held by an AMTS. The FAA is implementing the requirements of
Section 135(c)(4) in new Sec.  147.11.
---------------------------------------------------------------------------

    To the extent Section 135(c)(5) requires a certificated AMTS to
operate in accordance with OpSpecs, the FAA finds that this requirement
is already covered by Section 135(b), which prohibits a person from
operating an AMTS in violation of their OpSpecs. The requirements of
Section 135(b) are implemented in new Sec.  147.3.
    To the extent Section 135(c)(5) contains a list of content that
must be included in OpSpecs, the FAA finds that these requirements do
not belong in the regulations because they govern the conduct of the
FAA rather than the regulated community.\25\ As a result, the FAA is
not codifying these requirements in part 147.\26\ To ensure FAA's
compliance with these statutory requirements, the FAA will include
guidance to its inspectors in FAA Order 8900.1.
---------------------------------------------------------------------------

    \25\ These requirements govern the conduct of the FAA by
requiring the FAA to include certain content in the OpSpecs issued
under part 147.
    \26\ The FAA notes that its decision not to codify the OpSpecs
content requirements of Section 135(c)(5) is consistent with its
decision not to codify the OpSpecs content requirements of Section
135(c)(1)(B) and (2)(B). See Section III.c.1. of this preamble,
titled ``Application Requirements.''
---------------------------------------------------------------------------

    As a result of this interim final rule, the FAA has drafted new
operations specification paragraph templates for AMTS, which reflect
the new and/or changed requirements of part 147. Accordingly, all
OpSpecs paragraphs issued to AMTS prior to this interim final rule,
with the exception of A003, Ratings, will cease to be effective upon
the effective date of the interim final rule. Because an AMTS may not
operate without, or in violation of, AMTS OpSpecs, as stated in new
Sec.  147.3, each AMTS must ensure it has demonstrated compliance with
the provisions required by this interim final rule by providing the
applicable information to the AMTS's responsible Flight Standards
office. For additional information on submitting this information,
refer to Advisory Circular (AC) 147-3, Certification and Operation of
Aviation Maintenance Technician Schools. After the FAA receives and
reviews the requisite information, the FAA will issue the corresponding
OpSpecs in order to allow the AMTS to operate under part 147.

d. Certification and Operating Requirements (Subpart B)

    Section 135(d)(1) through (5) of the Act contain requirements that
govern the operations of certificated AMTSs, including requirements for
the facilities, equipment, and material provided by schools; training
locations; curricula; instructors; and certificates of completion. The
FAA is implementing those requirements in subpart B of part 147, which
is titled ``Certification and Operating Requirements.'' The following
sections reiterate the statutory requirements and explain how the FAA
is implementing the requirements in new part 147.
1. Facilities, Equipment, and Material Requirements (Sec.  147.13)
    Section 135(d)(1) states that each certificated AMTS shall provide
and maintain the facilities, equipment, and materials that are
appropriate to the one or more ratings held by the school and the
number of students taught. This statutory requirement is similar to
current Sec.  147.13, which requires that schools provide facilities,
equipment, and materials appropriate to their ratings. The statute,
however, does not include the same specificity regarding facilities,
equipment, and materials specified in current Sec. Sec.  147.15 through

147.19.\27\ Section 135(d)(1) retains the requirement from these
sections that such facilities, equipment, and materials be appropriate
to the number of students taught. The FAA is implementing the
requirements of Section 135(d)(1) in new Sec.  147.13(a). Thus, Sec.
147.13(a) will state that each certificated AMTS must provide and
maintain the facilities, equipment, and materials that are appropriate
to the rating or ratings held by the school and the number of students
taught.
---------------------------------------------------------------------------

    \27\ Current Sec.  147.15 (Space requirements) specifies that
facilities must be ``appropriate for the maximum number of students
expected to be taught at any time.'' Current Sec.  147.17
(Instructional equipment requirements) specifies schools must
provide instructional equipment needed for students to complete
practical projects, and maintain enough units to allow no more than
eight students to work on a unit at once. Current Sec.  147.19
(Materials, special tools, and shop equipment requirements)
specifies that schools must maintain an adequate supply of
materials, special tools, and shop equipment as appropriate to the
school's curriculum, and ``to assure that each student will be
properly instructed.''
---------------------------------------------------------------------------

    In developing the interim final rule, the FAA identified a
potential unintended burden on an AMTS in the implementation of Section
135(d)(1) in new Sec.  147.13(a) as it applies to additional training
locations. As discussed in the next section, Section 135(d)(2) requires
additional training locations to independently meet the requirements of
part 147. The FAA recognizes that an AMTS may utilize additional
training locations to teach all or part of its part 147 curriculum. If
an AMTS utilizes additional fixed locations other than its primary
location to provide part 147 training, the facilities, equipment, and
materials used at that additional location need only be appropriate to
the curriculum and number of students to be taught at that location.
    To alleviate an unintended burden that would have resulted from
additional locations independently meeting part 147, the FAA is adding
Sec.  147.13(b) to require that additional locations be appropriate
only to the curriculum or portion of the curriculum, and the number of
students being taught, at that location. By adopting this language in
new Sec.  147.13(b), the FAA alleviates an overly prescriptive burden
on a school to outfit all additional training locations with
facilities, equipment, and materials appropriate to the number of
students to be taught and the ratings held, which would include the
entirety of the school's curriculum. As a result, a school using
additional training locations must identify the portion of its
curriculum and number of students to be taught at each such location.
Because the provision in new Sec.  147.13(b) is merely a subset of the
overarching requirement of Sec.  147.13(a), the FAA finds that the
requirement is consistent with the statute.
    Pursuant to Sec.  147.5, an AMTS must submit information
demonstrating compliance with Sec.  147.13 in its application. Section
147.5(b)(1) requires applicants to describe the facilities, including
the physical address of the school's primary location for operation and
any additional fixed training locations, and the equipment and
materials to be used at each location. Section 147.5(b)(4) further
requires that applicants submit information needed to determine
compliance with each of the requirements of part 147, which includes
Sec.  147.13. As such, in addition to describing the facilities,
equipment, and materials to be used at each location, an AMTS must
demonstrate to the FAA that those facilities, equipment, and materials
are appropriate to both the school's rating or ratings, and the number
of students to be taught. If the AMTS uses additional training
locations, the school must demonstrate that the facilities, equipment,
and materials used at that location are appropriate to the curriculum,
or portion of the curriculum, and number of students to be taught
there. The FAA's process for determining the appropriateness of
facilities, equipment, and materials to the ratings held and number of
students to be taught will not change from the current regulation, in
that the FAA will continue to assess appropriateness to ratings through
the lens of the school's training program. That is, in determining the
appropriateness of facilities, equipment, and materials for a given
rating, the FAA will look to the curriculum that the school intends to
use.\28\
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    \28\ To illustrate, if the curriculum includes a skill
requirement that an applicant must perform on a specific piece of
equipment, the school must have that piece of equipment (e.g., where
a school's curriculum requires a student to be able to perform a
skill requirement to service a battery, the school must have an
aircraft battery in a condition that will allow a student to
demonstrate the appropriate servicing requirements in order to be
considered to have equipment appropriate to the rating).
---------------------------------------------------------------------------

2. Training Provided at Another Location (Sec.  147.15)
    Section 135(d)(2) allows a certificated AMTS to provide training at
any additional location that meets the requirements of the interim
final regulations and is listed in the certificate holder's OpSpecs.
    The FAA is implementing the requirements of Section 135(d)(2) in
new Sec.  147.15. This new regulation states that a certificated AMTS
may provide training at any fixed location other than its primary
location, provided the additional training location meets the
requirements of part 147 and is listed in the certificate holder's
OpSpecs. For clarity, the FAA is adopting rule language that slightly
differs from the statutory language. Specifically, rather than stating
that training may be provided at ``any additional location,'' new Sec.
147.15 states that training may be provided at ``any fixed location
other than its primary location.'' This change in terminology is
intended to clarify what is meant by the term ``additional location''
in Section 135(d)(2). To ascertain the meaning of ``additional
location,'' the FAA read Section 135(d)(2) in the context of Section
135(c)(1)(A)(i), which refers to the certificate holder's primary
location for operation of the school and any additional fixed locations
where training will be provided. Based on Section 135(c)(1)(A)(i), the
FAA determined that ``additional location'' in Section 135(d)(2) refers
to any fixed locations other than the primary location of the
school.\29\
---------------------------------------------------------------------------

    \29\ A distance learning system is considered an instructional
delivery method intended to allow for flexible scheduling and varied
location settings and, therefore, is not considered a fixed location
other than the primary location of the school.
---------------------------------------------------------------------------

    Additionally, the legislation states that an AMTS may provide
training at any additional location that meets the requirements of the
interim final regulations, required under Section 135(a)(1). The
interim final regulations required under Section 135(a)(1) are
implemented as part 147. Therefore, the FAA is implementing the
legislation to require that the additional training location must meet
the requirements in part 147. Consequently, schools should expect the
FAA to verify that each location meets the requirements of part 147
prior to the FAA listing the location on the AMTS OpSpecs.
    There is nothing in the statute that prohibits foreign training
locations nor is the FAA aware of any other prohibition concerning the
foreign location of part 147 schools.\30\ Therefore, based on the broad
statutory provision in Section 135(d)(2), the FAA finds additional
training locations may be located outside the United States, provided
the additional location meets the requirements of part 147 and is
listed in the certificate holder's OpSpecs.\31\ For the same reasons,
the

FAA finds that certificated AMTSs may be located outside of the United
States. The FAA is updating its guidance to reflect the allowance of
foreign locations under part 147.\32\
---------------------------------------------------------------------------

    \30\ The FAA notes that it also allows foreign satellites in
parts 141 and part 142. Additionally, the FAA allows foreign
training centers under part 142.
    \31\ There are fees for certification services performed outside
the United States. 14 CFR part 187. Appendix A to part 187 contains
the methodology for computation of such fees. Advisory Circular 187-
1 contains an updated schedule of charges for services of FAA Flight
Standards Service aviation safety inspectors outside the United
States.
    \32\ It is noted that, under Sec.  65.3, a person who is neither
a U.S. citizen nor a resident alien may be issued a certificate
under part 65, outside the U.S., only when the Administrator finds
that the certificate is needed for the continued operation or
continued airworthiness of a U.S.-registered aircraft. As such,
graduation from a certificated AMTS alone will not guarantee
eligibility for a part 65 mechanic certificate for a non-U.S.
citizen or non-resident alien; the applicant must still meet Sec.
65.3.
---------------------------------------------------------------------------

3. Training Requirements (Sec.  147.17 and 1 CFR Part 51)
    Section 135(d)(3) requires each certificated AMTS to establish,
maintain, and utilize a curriculum designed to continually align with
mechanic airman certification standards as appropriate for the ratings
held, provide training of a quality that meets the requirements of
subsection (f)(1),\33\ and ensure students have the knowledge and
skills necessary to be eligible to test for a mechanic certificate and
associated ratings under subpart D of part 65.
---------------------------------------------------------------------------

    \33\ Section 135(f)(1) establishes the minimum passage rate for
a certificated AMTS, and is implemented in Sec.  147.25.
---------------------------------------------------------------------------

    The FAA is implementing Section 135(d)(3) in new Sec.  147.17.
Additionally, to effectuate the legislation, the FAA is making
conforming amendments to part 65. The following sections discuss the
training requirements set forth in the statute and the FAA's
implementation of those requirements in more detail.
A. Incorporation by Reference (1 CFR Part 51)
    Incorporation by reference is a mechanism that allows Federal
agencies to comply with the requirements of the Administrative
Procedure Act (APA) \34\ to publish rules in the Federal Register and
the Code of Federal Regulations by referring to material published
elsewhere.\35\ Material that is incorporated by reference has the same
legal status as if it were published in full in the Federal Register.
Because 5 U.S.C. 552(a) requires the Director of the Federal Register
to approve material to be incorporated by reference, incorporation by
reference is governed by the Office of the Federal Register and as
promulgated in its regulations: 1 CFR part 51. Specifically, 1 CFR part
51 provides certain requirements that a regulatory incorporation by
reference must contain.
---------------------------------------------------------------------------

    \34\ The APA includes requirements for publishing notices and
providing opportunities for public comment of proposed and final
rules in the Federal Register. See 5 U.S.C. 553(b).
    \35\ 5 U.S.C. 552(A), which states, ``except to the extent that
a person has actual or timely notice of the terms thereof, a person
may not in any manner be required to resort to, or be adversely
affected by, a matter required to be published in the Federal
Register and not so published. For the purpose of this paragraph,
matter reasonably available to the class of persons affected thereby
is deemed published in the Federal Register when incorporated by
reference therein with the approval of the Director of the Federal
Register.''
---------------------------------------------------------------------------

    To receive a mechanic certificate or rating under subpart D of part
65, an applicant must pass a written, oral, and practical test.\36\
Currently, the standards for the oral and practical tests are contained
in the Mechanic Practical Test Standards (PTS).\37\ The Mechanic PTS
contains knowledge and skill subject areas that an applicant must
demonstrate to pass the oral and practical test for a certificate or
rating. Additionally, the questions on the written test align with the
subject areas presented in the Mechanic PTS. Specifically, the Mechanic
PTS contains subject areas, under which objectives define the general
performance expectations of the elements within the subject areas.
Currently, FAA inspectors and designated mechanic examiners (DMEs)
conduct tests in accordance with the Mechanic PTS; however, the
Mechanic PTS is not a regulatory standard for the written, oral, or
practical tests.\38\
---------------------------------------------------------------------------

    \36\ 14 CFR 65.71(a)(3), 65.75 and 65.79.
    \37\ As of the effective date of this interim final rule, the
version of the PTS utilized is: Aviation Mechanic General, Airframe,
and Powerplant Practical Test Standards; FAA-S-8081-26B; Nov. 1,
2021.
    \38\ See ``Foreword,'' Aviation Mechanic General, Airframe, and
Powerplant Practical Test Standards; FAA-S-8081-26B; Nov. 1, 2021.
---------------------------------------------------------------------------

    The FAA has initiated a process to transition from using the
Mechanic PTS as the testing standard to obtain a mechanic
certificate.\39\ As a part of this process, the FAA developed the
Mechanic Airman Certification Standards (ACS), which adds task-specific
knowledge and risk management elements to the standards, resulting in a
comprehensive presentation that integrates the standards for what an
applicant must demonstrate to pass the written, oral, and practical
tests for a certificate or rating, respectively. Specifically, the
Mechanic ACS contains several high-level subjects that will be assessed
on the FAA tests as appropriate to the rating sought.\40\ For each
subject, the ACS specifies the aeronautical knowledge, risk management,
and skill standards that an FAA inspector or a DME may evaluate for
mechanic certification.
---------------------------------------------------------------------------

    \39\ The FAA began to establish the ACS in 2011, in cooperation
with an industry working group established under the Aviation
Rulemaking Advisory Committee (ARAC). The goal in creating the ACS
was to drive a systematic approach to the airmen certification
process, including knowledge test question development and conduct
of the practical test.
    \40\ As discussed herein, the FAA will continue to use the PTS
as the testing standard under part 65 for a period of time after the
effective date of this rule.
---------------------------------------------------------------------------

    In accordance with 5 U.S.C. 552(a) and 1 CFR part 51,\41\ the FAA
makes the Mechanic PTS and ACS reasonably available to interested
parties by providing free online public access to view on the FAA
Airman Certification Standards website at: www.faa.gov/training_testing/testing/acs. Additionally, the Mechanic PTS and
Mechanic ACS are available for download, free of charge, at the
provided web address. In addition to the free online material available
on the FAA's website, hard copies and printable versions are available
from the FAA.
---------------------------------------------------------------------------

    \41\ Section 552(a) of title 5, United States Code, requires
that matter incorporated by reference be ``reasonably available'' as
a condition of its eligibility. Further, 1 CFR 51.5(b)(2) requires
that agencies seeking to incorporate material by reference discuss
in the preamble of the final rule, the ways that the material it
incorporates by reference are reasonably available to interested
parties, and how interested parties can obtain the material.
---------------------------------------------------------------------------

B. Curriculum Requirements (Sec.  147.17(a)(1) and (b))
    Consistent with Section 135(d)(3)(A), Sec.  147.17(a)(1) will
require each certificated AMTS to establish, maintain, and utilize a
curriculum designed to continually align with the mechanic airmen
certification standards as appropriate to the ratings held. The phrase
``mechanic airman certification standards'' in Section 135(d)(3)(A)
refers to the standards that an applicant for a mechanic certificate or
rating must demonstrate for certification.
    Prior to this interim final rule, as previously stated, the FAA had
not taken the necessary steps to make the testing standards regulatory.
Because the legislation requires an AMTS curriculum to align with the
testing standards, an AMTS is incapable of complying with the
implementing regulation in Sec.  147.17(a)(1) without referring to the
testing standards contained in the Mechanic ACS. Because the
implementing regulation requires an AMTS to use the Mechanic ACS, which
is not already published in the Code of Federal Regulations or another
location that carries the full force and effect of the law, the FAA is
incorporating the Mechanic ACS by

reference. Therefore, consistent with the statute, Sec.  147.17(a)(1)
requires each certificated AMTS to establish, maintain, and utilize a
curriculum \42\ designed to continually align with the mechanic airmen
certification standards as appropriate to the ratings held. The
mechanic airman certification standards are contained in the Mechanic
ACS, which is a document that exists outside the regulations;
therefore, to effectuate the requirement, the FAA is incorporating it
by reference as previously discussed. Section 147.17(b) contains the
proper language of incorporation set forth by the Office of the Federal
Register \43\ and includes document identification and location
information, thereby enabling AMTS to comply with Sec.  147.17(a)(1).
---------------------------------------------------------------------------

    \42\ The FAA notes that Section 135(d)(3)(a), and the
implementing regulation, states each certificated AMTS must
establish, maintain, and utilize a curriculum; both ``AMTS'' and
``curriculum'' are stated in the singular. While an AMTS may have
only one curriculum, it may have separate curriculum components
(i.e., General, Airframe, Powerplant) for the ratings that the AMTS
holds.
    \43\ See 1 CFR 51.9.
---------------------------------------------------------------------------

    As previously discussed, the Mechanic ACS includes high-level
subjects (e.g., Fundamentals of Electricity and Electronics, Aircraft
Drawings), which are broken down into components that include
knowledge, risk management, and skill elements relevant to that
subject. The knowledge, risk management, and skill elements set forth
the standards for certification. Because the statute requires a
curriculum to align with the Mechanic ACS, the curriculum must align
with the standards set forth under the high-level subjects. For
example, a curriculum would not meet the statutory requirement in
Section 135(d)(3)(A) if it aligned only with the subjects in the
Mechanic ACS because the high-level subjects are not the certification
standards.\44\ Nor would a curriculum suffice if it did not align with
the knowledge and skill elements contained in the Mechanic ACS, because
those are the knowledge and skill standards that the FAA will evaluate
in testing applicants for a mechanic certificate under part 65.
---------------------------------------------------------------------------

    \44\ If an AMTS only adopted the high-level subjects as their
curriculum, the AMTS could have underlying course content items or
projects that do not align with the Mechanic ACS, thereby resulting
in violation of the statute.
---------------------------------------------------------------------------

    While a curriculum must align with the high-level subjects and the
standards set forth under those subjects, an AMTS need not duplicate
the entire Mechanic ACS verbatim into its curriculum. Rather, the
intent is to provide a more flexible, performance-based standard that
enables an AMTS to develop a curriculum suited to the particular AMTS
and that aligns with the Mechanic ACS. The FAA finds that an AMTS will
be in compliance with Sec.  147.17(a)(1) \45\ if the school designs its
curriculum to include: (1) The high-level subjects that are listed in
the Mechanic ACS; and (2) broader course content items, concepts, and
practical projects under each high-level subject, which may encompass
several of the more detailed knowledge, risk management, and skill
elements listed in the Mechanic ACS. For example, one broad course
content item in the curriculum may encompass several knowledge elements
listed in the Mechanic ACS, while still aligning with the Mechanic ACS.
The FAA notes that the requirement to align the curriculum with the
Mechanic ACS will not preclude an AMTS from including additional course
content beyond that provided in the Mechanic ACS.
---------------------------------------------------------------------------

    \45\ Section 147.17(a)(1) implements the statutory requirement
in Section 135(d)(3)(A).
---------------------------------------------------------------------------

    New Sec.  147.17 replaces the curriculum requirements set forth in
current Sec.  147.21 (General curriculum requirements). New Sec.
147.17 omits certain requirements in current Sec.  147.21, including
prescriptive requirements for curriculum hours and inclusion of
subjects currently found in the appendices of part 147. Additionally,
while the FAA will review curriculum as part of its oversight
responsibilities, the FAA will no longer approve AMTS curriculum. For
this reason, exemptions previously issued to provide relief from
current Sec.  147.21 will no longer be needed and will terminate upon
the effective date of this interim final rule.\46\
---------------------------------------------------------------------------

    \46\ E.g., Exemption No. 18892 (Docket No. FAA-2002-11395);
Exemption No. 18766 (Docket No. FAA-2019-0165).
---------------------------------------------------------------------------

C. Conforming Amendments To Incorporate the Mechanic ACS by Reference
(Sec. Sec.  65.23, 65.75, and 65.79)
    The FAA's implementation of new Sec.  147.17 and incorporation by
reference of the Mechanic ACS into part 147 necessitates conforming
revisions to part 65. While part 147 addresses the training of
mechanics through a certificated AMTS, subpart D of part 65 contains
the eligibility requirements for all applicants seeking a mechanic
certificate or rating, including the requirements to pass a written,
oral, and practical test, respectively, within a period of 24
months.\47\ That is, mechanic applicants who do not graduate from a
certificated AMTS may test for a mechanic certificate by obtaining
certain thresholds of practical experience rather than by graduating
from a certificated AMTS.\48\ The eligibility requirements and testing
standards in subpart D of part 65 are applicable to students trained by
an AMTS, as well as those who meet the practical experience
requirements found in Sec.  65.77(b).
---------------------------------------------------------------------------

    \47\ See Sec. Sec.  65.71(a)(3), 65.75, and 65.79.
    \48\ See Sec.  65.77.
---------------------------------------------------------------------------

    The training of mechanics at an AMTS must therefore correspond to
the testing standards required for certification under part 65, as
evidenced by Section 135(d)(3)(C) of the Act, which requires an AMTS to
ensure students have the knowledge and skills necessary to test for a
mechanic certificate and associated ratings under part 65 and to align
its curriculum with the Mechanic ACS. If the FAA did not require
compliance with the Mechanic ACS in part 65, it would result in a
disconnect between the training provided to AMTS students and the
testing standards that an applicant must demonstrate on an FAA test for
mechanic certification. This disconnect would adversely affect AMTS
students if tested on knowledge and skill that the students were not
trained on and would be inconsistent with Section 135(d)(3)(C). As
evidenced from this statutory requirement, as well as the requirement
for a curriculum to align with the mechanic airman certification
standards (i.e., the testing standards), the FAA has concluded that
Congress did not intend to create a discrepancy between the training a
student receives from an AMTS and the testing standard that a student
is evaluated on for mechanic certification. Accordingly, to effectuate
the legislation, the FAA finds it necessary to incorporate the Mechanic
ACS by reference into part 65.
    However, as previously discussed, the FAA has not yet transitioned
to the Mechanic ACS as the testing standard and currently uses the
Mechanic PTS to test applicants for a mechanic certificate or rating in
accordance with subpart D of part 65. Because the Mechanic ACS added
knowledge and skill standards, the FAA recognizes that applicants who
have been trained by an AMTS prior to this interim final rule may not
have received training on certain aspects of aircraft maintenance
included in the Mechanic ACS.\49\ Should the FAA implement the Mechanic
ACS as the testing standard upon the effective date

of this interim final rule, students who have been trained by an AMTS
under the contents of the current part 147, appendices B, C, and D,
would be placed at an immediate disadvantage when testing. Therefore,
in order to allow for each AMTS to train its students under the
curriculum aligned with the Mechanic ACS, as required by new Sec.
147.17(a)(1), the FAA is delaying the implementation of the Mechanic
ACS as the testing standard in part 65. Further, the FAA finds that one
year is a sufficient time frame for current AMTS students to gain the
knowledge required to take a knowledge, practical, and oral test based
on the Mechanic ACS standards.\50\ Therefore, the FAA will use the
Mechanic PTS as the testing standard until July 31, 2023. After July
31, 2023, the FAA will use the Mechanic ACS to conduct mechanic tests.
---------------------------------------------------------------------------

    \49\ For example, the Mechanic ACS adds the subject areas
``Water and Waste'' and ``Rotorcraft Fundamentals,'' which were not
previously included in the PTS. Additionally, the subject area
elements of the Mechanic ACS provide more specific aeronautical
knowledge elements that include detailed knowledge, risk management,
and skill elements within existing subject areas.
    \50\ Although there are variances in AMTS curriculum delivery
timeframes, most AMTS structure their curriculum to provide students
with the knowledge and skills needed to apply for a mechanic
certificate, with at least a single rating, within one year.
---------------------------------------------------------------------------

    To enforce both the Mechanic PTS and Mechanic ACS in part 65, the
FAA must incorporate these standards by reference, as done for part
147, to ensure the testing standards are legally enforceable and
consistent with the standards required by part 147. To require
compliance with the testing standards set forth in the Mechanic PTS and
Mechanic ACS, the FAA adds a new regulation to subpart A of part 65,
designated as Sec.  65.23, and amends the requirements in Sec. Sec.
65.75 and 65.79, which require an applicant for a mechanic certificate
or rating to pass a knowledge, oral and practical test, respectively.
Rather than restate the language required by 5 U.S.C. 552(a) and 1 CFR
51.9(b) to incorporate a document by reference in multiple part 65
sections, the FAA has created a new centralized incorporation by
reference section as Sec.  65.23 that incorporates the Mechanic PTS and
Mechanic ACS. Centralizing the incorporation of the Mechanic ACS and
Mechanic PTS under one section will streamline the regulatory text and
avoid repetitive information in the regulations. Subsequent part 65
sections that require compliance with these respective standards (i.e.,
Sec. Sec.  65.75 and 65.79) refer to Sec.  65.23 for identification
information and the incorporation by reference language required by 1
CFR part 51.
    Prior to this interim final rule, Sec.  65.75 required the
applicant to pass a written test that covered certain knowledge
areas.\51\ However, the FAA and an industry working group developed the
Mechanic ACS to contain knowledge elements that an applicant must know
to pass the written test. Thus, the Mechanic ACS contains the intended
testing standards for the written test. To make these knowledge testing
standards mandatory, the FAA is revising Sec.  65.75 by incorporating
by reference the Mechanic ACS in the section. However, as previously
discussed, an immediate effectivity of the Mechanic ACS as the testing
standard would put students who have trained at an AMTS whose
curriculum has not incorporated some Mechanic ACS subject areas at a
disadvantage. Therefore, the FAA will test mechanic applicants using
the Mechanic PTS. The FAA will not test part 65 applicants on the
subject areas contained in the Mechanic ACS until AMTSs have had an
opportunity to deliver their revised curriculum in accordance with new
Sec.  147.17 (i.e., aligned with the Mechanic ACS as appropriate for
the ratings held).
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    \51\ Pursuant to Sec.  65.75, an applicant for a mechanic
certificate or rating must pass a written test appropriate to the
rating sought after meeting the experience requirements of Sec.
65.77. However, as explained in section III.e.4 of this preamble,
titled ``Early Testing,'' the FAA is adding a new provision to Sec.
65.75 to allow for early testing in accordance with the statutory
requirement in Section 135(f)(4).
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    As such, the FAA is revising Sec.  65.75(a) to require that each
applicant for a mechanic certificate or rating must, after meeting the
applicable experience requirements of Sec.  65.77, pass a written test,
appropriate to the rating sought, which includes the subject areas
contained in the applicable Mechanic PTS, appropriate to the rating
sought, until July 31, 2023. After July 31, 2023, new Sec.  65.75(a)
requires part 65 applicants, after meeting the applicable experience
requirements of Sec.  65.77, to pass a written test, appropriate to the
rating sought, which includes the aeronautical knowledge subject areas
contained in the Mechanic ACS, appropriate to the rating sought.
    The FAA is retaining the requirement in Sec.  65.75(b) that the
applicant must pass each section of the test before applying for the
oral and practical tests prescribed by Sec.  65.79,\52\ and that a
report of the written test is sent to the applicant. The FAA notes that
consistent with Section 135(f)(4) of the statute, the FAA is adding a
provision to Sec.  65.75 to allow AMTS students to take the general
written test prior to meeting the experience requirements of Sec.
65.77 if they can provide an authenticated document from a certificated
AMTS demonstrating satisfactory completion of the general portion of
the school's curriculum. Section III.e.4. of this preamble, titled
``Early Testing,'' discusses Sec.  65.75(c) in detail.
---------------------------------------------------------------------------

    \52\ Section 65.80 provides an exception that permits a student
to take the oral and practical tests prescribed by Sec.  65.79
during the final subjects of the applicant's training in the
curriculum before the student meets the applicable experience
requirements of Sec.  65.77 and before the student passes each
section of the written test prescribed by Sec.  65.75 when a
certificated AMTS shows to an FAA inspector that the student has
made satisfactory progress at the school and is prepared to take the
oral and practical tests.
---------------------------------------------------------------------------

    Similarly, the FAA is revising Sec.  65.79, which contains the oral
and practical test requirements for applicants seeking a mechanic
certificate or rating, by incorporating by reference both the Mechanic
PTS and the Mechanic ACS, respectively, in the section with the same
effectivity dates as promulgated by Sec.  65.75. Prior to this final
rule, Sec.  65.79 required each applicant to pass an oral test and a
practical test appropriate to the rating sought. Section 65.79 required
the tests to cover the applicant's basic skill in performing practical
projects on the subjects covered by the written test for the rating
sought. Additionally, Sec.  65.79 required an applicant for a
powerplant rating to show their ability to make satisfactory minor
repairs to, and minor alternations of, propellers. To make the testing
standards mandatory, the FAA is requiring in new Sec.  65.79(a) that
each applicant for a mechanic certificate or rating must pass an oral
test and a practical test, as appropriate to the rating sought, by
demonstrating the prescribed proficiency \53\ in the assigned
objectives for the subject areas contained in the applicable Mechanic
PTS until July 31, 2023. After July 31, 2023, new Sec.  65.79(b)
requires each applicant for a mechanic certificate or rating to pass an
oral test and practical test, as appropriate to the rating sought, by
demonstrating satisfactory understanding of the knowledge, risk
management, and skill element for each subject contained in the
Mechanic ACS.\54\
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    \53\ The Mechanic PTS prescribes performance levels for which an
applicant must demonstrate proficiency in the assigned elements in
each subject area for the oral and practical tests.
    \54\ The FAA notes that the oral and practical tests are
administered using a representative sample of subject areas and
their requisite elements; a single test may not include all of the
subject areas and elements listed in the Mechanic PTS or Mechanic
ACS.
---------------------------------------------------------------------------

D. Remaining Training Requirements (Sec.  147.17(a)(2) and (3))
    The FAA is implementing the remaining training requirements of
Section 135(d)(3)(B) and (C) in new Sec.  147.17(a)(2) and (3). Section
147.17(a)(2) requires each AMTS to

provide training of a quality that meets the requirements of Sec.
147.25,\55\ which contains the minimum passage rate requirements that a
school must maintain. Section 147.17(a)(2) implements the statutory
requirement of Section 135(d)(3)(B) without change. Section
147.17(a)(3) requires each AMTS to ensure that its students have the
knowledge and skills necessary to be prepared to test for a mechanic
certificate and associated ratings under subpart D of part 65.\56\
Section 147.17(a)(3) implements the statutory requirement of Section
135(d)(3)(C) with one minor change in terminology for accuracy. As
previously discussed, subpart D of part 65 contains the eligibility and
certification requirements for persons seeking a mechanic certificate
or rating. Part 65 does not require a student to have knowledge and
skill ``to be eligible'' to test for a mechanic certificate or rating.
Rather, Sec. Sec.  65.75 and 65.79 require an applicant to pass a
written, oral, and practical test by demonstrating certain knowledge
and skills. It is, therefore, accurate to state that a student must
have the knowledge and skills necessary ``to be prepared'' to test for
a mechanic certificate and associated ratings under subpart D of part
65. Section 147.17(a)(3) contains this change in terminology for
purposes of alignment with the requirements of part 65.
---------------------------------------------------------------------------

    \55\ Section 135(f)(3)(B) requires the training to meet the
requirements of subsection (f)(1), which the FAA has implemented as
Sec.  147.25.
    \56\ The FAA notes that new Sec.  147.5(b) requires an AMTS to
provide a description of the manner in which the school's curriculum
will ensure the student has the knowledge and skills required by new
Sec.  147.17(a)(3). In providing such description, the AMTS should
include information such as the basis of the curriculum (e.g.,
credit hours, hours-based, competency based training), as well as
the curriculum delivery methods (e.g., distance learning, in-person
learning, virtual labs).
---------------------------------------------------------------------------

4. Instructor Requirements (Sec.  147.19)
    Section 135(d)(4) states that each certificated AMTS shall (A)
provide qualified instructors to teach in a manner that ensures
positive educational outcomes are achieved; (B) ensure instructors hold
a mechanic certificate with one or more appropriate ratings (or, with
respect to instructors who are not certificated mechanics, ensure
instructors are otherwise specifically qualified to teach their
assigned content); and (C) ensure the student-to-instructor ratio does
not exceed 25:1 for any shop class.
    The statutory requirement preserves the requirement in current
Sec.  147.23 that instructors either hold a mechanic certificate or be
otherwise specially qualified to teach certain curriculum content. The
requirement also retains the student-to-instructor ratio prescribed for
shop classes in current Sec.  147.23 but removes the requirement that
the one instructor in that ratio be FAA certificated. ``Mechanic
certificate'' will continue to refer to an FAA mechanic certificate
issued under part 65. The FAA interprets ``specifically qualified'' to
mean an instructor is demonstrably qualified by reason other than an
FAA mechanic certificate (e.g., education or relevant experience) to
teach a certain portion of the school's curriculum.
    The statute adds the requirement that qualified instructors teach
in a manner that ensures achievement of positive educational outcomes.
The FAA interprets positive educational outcomes to refer to the
training standards set forth in Section 135(d)(3) (implemented in new
Sec.  147.17), which are geared toward ensuring the AMTS provides
training of a quality that satisfies the pass rate requirement
specified in Sec.  147.25 and equips students with the knowledge and
skills needed to be prepared to test for a mechanic certificate and
associated ratings under part 65. This means that instructors qualified
in accordance with Section 135(d)(4)(B) must teach in a manner that
ensures achievement of the training requirements in new Sec.
147.17(a)(2) and (3). That is, instructors must teach in a manner that
ensures the AMTS provides training of a quality that meets the minimum
pass rate requirement specified in Sec.  147.25.\57\ Additionally,
instructors must teach in a manner that ensures students have the
knowledge and skills necessary to be prepared to test for a mechanic
certificate and associated ratings under subpart D of part 65.\58\
---------------------------------------------------------------------------

    \57\ See Sec.  147.17(a)(2).
    \58\ See Sec.  147.17(a)(3).
---------------------------------------------------------------------------

    The FAA is implementing the requirement of Section 135(d)(4) in new
Sec.  147.19 with one minor change. The FAA is dividing Section
135(d)(4)(B), which is implemented in new Sec.  147.19(b), into two
subsections that distinguish the requirements for instructors who hold
a mechanic certificate versus instructors who are otherwise
specifically qualified.
    An AMTS must submit information demonstrating compliance with Sec.
147.19 in its application. Section 147.5(b)(3) requires applicants to
describe the manner in which the school will ensure it provides the
necessary qualified instructors to meet the requirements of Sec.
147.19. Section 147.5(b)(4) further requires that applicants submit
information needed to determine compliance with each of the
requirements of part 147, which includes Sec.  147.19. As such, in
addition to describing the manner in which the school will ensure it
provides the instructors required by Sec.  147.19, the school must
submit information demonstrating compliance with the requirements to
(a) provide qualified instructors to teach in a manner that ensures
positive educational outcomes; (b) ensure instructors are either
certificated mechanics or otherwise specifically qualified; and (c)
ensure the student-to-instructor ratio does not exceed 25:1 for any
shop class.
    To demonstrate compliance with Sec.  147.19(a), an AMTS must submit
evidence that it is able to provide qualified instructors (as defined
in Sec.  147.19(b)) to ensure the achievement of the training
requirements in Sec.  147.17(a)(2) and (a)(3). An AMTS should be
prepared to describe the manner by which the school will ensure that
its instructors can provide training of a quality that meets the
requirements of Sec.  147.25 and equip students with the knowledge and
skills necessary to be prepared to test for a mechanic certificate and
associated ratings under subpart D of part 65.
    To demonstrate compliance with Sec.  147.19(b), an AMTS must submit
information demonstrating that any certificated instructors hold FAA
mechanic certificates and appropriate ratings. For any non-certificated
instructors, the school must identify the portion of its curriculum to
which the instructor will be assigned and submit information
demonstrating that the instructor is specifically qualified to teach
their assigned content.
5. Certificate of Completion (Sec.  147.21)
    Section 135(d)(5), titled ``Certificate of completion,'' states
that each certificated AMTS shall provide authenticated documentation
to each graduating student, indicating the student's date of graduation
and curriculum completed, as described in Section 135(d)(3)(A), which
contains the training requirements for AMTSs.
    The FAA is implementing the requirements of Section 135(d)(5) in
new Sec.  147.21 by stating that each certificated AMTS must provide an
authenticated document to each graduating student, indicating the
student's date of graduation and curriculum completed. Because the
statute requires the FAA to establish interim final regulations in
accordance with Section 135, new Sec.  147.21 will not require an AMTS
to provide an authenticated transcript of a student's grades to each
student who is graduated

from the school or who leaves it before graduating as current Sec.
147.35 (Transcripts and graduation certificates) requires. The language
in new Sec.  147.21 mirrors the statute except for two minor changes.
    First, the FAA finds it unnecessary to codify the statutory
provision that states ``the curriculum as described in Section
135(d)(3)(A).'' As previously discussed, Section 135(d)(3)(A), which
contains the curriculum requirements, is implemented in new Sec.
147.17(a). It is apparent that the curriculum referenced in new Sec.
147.21 refers to the curriculum required by Sec.  147.17(a), as that is
the only curriculum referenced in, and required by, new part 147. As
such, the FAA is not adopting language that states ``the curriculum as
described in Sec.  147.17(a).''
    Second, the FAA is using the term ``authenticated document''
instead of ``authenticated documentation.'' Under the FAA's
regulations, the purpose of issuing an authenticated document to a
student who graduates from a certificated AMTS is to enable that
student to demonstrate compliance with the experience requirements of
Sec.  65.77. The FAA finds that the term ``authenticated document'',
rather than ``authenticated documentation,'' accurately captures the
documents intended to be presented under Sec.  65.77. The FAA is
concerned that the term ``authenticated documentation'' is vague and
may be broadly interpreted to include numerous pages of extensive
documentation. When a student presents a document to demonstrate
compliance with Sec.  65.77, that student presents the document to a
knowledge testing center to show that the student is eligible to take
the written test or tests. A knowledge testing center is a private
company designated by the FAA to administer written airman knowledge
tests, with FAA oversight to ensure compliance with FAA requirements.
As a private company, a knowledge testing center is not the appropriate
entity to review extensive documentation and make a determination about
the student's eligibility under the regulations. Instead, the student
must present a single document to the knowledge testing center that
unambiguously demonstrates the student's eligibility to take the
written tests. The term ``authenticated document'' is, therefore, more
appropriate for an AMTS to provide to its graduates.
    Furthermore, if the authenticated document is issued under Sec.
147.21 for the purpose of demonstrating compliance with Sec.  65.77,
the FAA finds it necessary for the authenticated document to include
the school's name and air agency certificate number to enable the
knowledge testing center to identify the school as a certificated AMTS.
Because schools may share the same name, an air agency certificate
number is the only means for the FAA and knowledge testing centers to
distinguish between AMTSs and to ensure the student graduated from a
certificated AMTS.\59\
---------------------------------------------------------------------------

    \59\ The FAA notes that an applicant must demonstrate that the
applicant meets the experience requirements of Sec.  65.77 in order
to be eligible to take the written test. The experience requirements
provide two avenues to demonstrate such have been met: (1)
Graduation from a certificated AMTS, or (2) practical experience. It
follows that if an applicant graduated from a non-certificated AMTS,
the applicant must demonstrate the requisite practical experience in
order to be eligible to take the written test. Therefore, the
designation of whether an AMTS is certificated is vital for testing
centers to determine how the applicant meets the experience
requirements of Sec.  65.77 prior to testing.
---------------------------------------------------------------------------

    In order to ensure consistency in the regulations, the FAA finds
the need to make two conforming amendments to Sec.  65.77. For purposes
of effectuating the legislation in harmony with part 65, the FAA is
replacing the reference in Sec.  65.77 of ``a graduation certificate or
certificate of completion'' with ``authenticated document.''
Additionally, Sec.  65.77 presents two alternatives in lieu of
graduating from a certificated AMTS in order to meet the experience
required in Sec.  65.75 to take the written test, provided the
applicant provides documentary evidence satisfactory to the
Administrator of such. The FAA finds that it is necessary to reformat
Sec.  65.77 in order to communicate that an applicant for a mechanic
certificate or rating may present either an authenticated document from
an AMTS or documentary evidence of one of the two practical experience
alternatives.

e. Quality Control System Requirements (Sec.  147.23)

    Section 135(e) establishes new requirements for certificated AMTSs
based on whether the AMTS is accredited by the Department of Education.
The following sections reiterate the statutory requirements and explain
how the FAA is implementing them in new part 147.
1. Quality Control System: Accreditation (Sec.  147.23(a))
    Section 135(e)(1) states that an AMTS must be accredited as meeting
the definition of an institution of higher education provided for in
section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001) or
establish and maintain a quality control system that meets the
requirements specified in Section 135(e)(2), FAA-approved quality
control system, and is approved by the Administrator.
    The FAA is implementing the requirements of Section 135(e)(1) in
new Sec.  147.23(a), with two minor revisions. First, the FAA adds the
word ``certificated'' before ``aviation maintenance technician school''
to clarify the applicability of the requirements of Sec.  147.23(a).
    Second, the FAA revises the requirement to state that a school must
``be accredited within the meaning of 20 U.S.C. 1001(a)(5).'' Although
the statute specified a school would need to be ``accredited as meeting
the definition of an institution of higher education,'' this language
incorrectly suggests that a school is accredited if it meets the
Department of Education's definition of ``institution of higher
education.'' To the contrary, accreditation is one of five criteria
that a school must meet in order to be deemed an ``institution of
higher education'' under 20 U.S.C. 1001(a). Schools become accredited
by seeking recognition from one of the accrediting agencies governed by
the Department of Education. Section 1001(a) requires that schools be
``accredited by a nationally recognized accrediting agency or
association.'' Pursuant to Section 1001(c), the Secretary of Education
publishes a list of all nationally recognized accrediting agencies or
associations determined to be reliable authority as to the quality of
the education or training offered. Given that the subsequent section,
Section 135(e)(2), refers only to accreditation, and not the definition
of ``institution of higher education,'' the FAA believes the statute
intends to require that schools be ``accredited,'' as that term is used
in 20 U.S.C. 1001(a)(5), rather than requiring schools to meet all five
criteria of the Department of Education's definition, which would
appear to well exceed the scope of part 147 certification.
    For this reason, the FAA requires in Sec.  147.23(a) that each
certificated AMTS either (1) be accredited within the meaning of 20
U.S.C. 1001(a)(5)--meaning they are accredited by an accrediting agency
or association recognized by the Department of Education pursuant to 20
U.S.C. 1001(c); or (2) establish and maintain a quality control system
that meets the requirements in Sec.  147.23(b).
    The requirement to ``maintain'' the quality control system under
Sec.  147.23(a)(2) means that a school must continue to implement the
procedures described in its quality control system after it is approved
by the FAA. If the school makes changes to its FAA-approved quality
control system, then

the school must notify the FAA since the basis for the FAA's approval
would have changed. The FAA will provide a means of compliance for a
quality control system and outline procedures that have proven
successful for AMTSs in the past in AC 147-3 (as revised). The means of
compliance set forth in the AC are not the only means of satisfying
Sec.  147.23; schools may use alternative means of compliance.
    The FAA notes that the Department of Education's recognition of
accrediting agencies is limited by statute to accreditation activities
within the United States.\60\ To be accredited within the meaning of 20
U.S.C. 1001(a)(5), an AMTS must have its primary location within the
United States. The FAA would consider an AMTS's accreditation to extend
to any additional training locations, whether located within or outside
the United States. An AMTS whose primary location is outside of the
United States cannot satisfy Sec.  147.23(a)(1) and must instead
establish and maintain a quality control system pursuant to Sec.
147.23(b).
---------------------------------------------------------------------------

    \60\ See 20 U.S.C. 1099b.
---------------------------------------------------------------------------

    An AMTS must submit information demonstrating compliance with Sec.
147.23(a) in its application. Section 147.5(b)(4) requires that
applicants submit information needed to determine compliance with each
of the requirements of part 147, which includes Sec.  147.23. As such,
an AMTS must either demonstrate that it is accredited within the
meaning of 20 U.S.C. 1001(a)(5) or submit for FAA approval a quality
control system that satisfies Sec.  147.23(b). To demonstrate
accreditation under Sec.  147.23(a), a school should provide
documentation that shows the school's current accreditation status and
its accrediting agency.
2. Quality Control System: FAA-Approved System (Sec.  147.23(b))
    As previously discussed, Section 135(e)(1)(B) requires a non-
accredited AMTS to establish and maintain a quality control system that
meets the requirements of Section 135(e)(2) and is approved by the
Administrator. In the case of a non-accredited AMTS, Section 135(e)(2)
requires the Administrator to approve a quality control system that
provides procedures for record-keeping, assessment, issuing credit,
issuing of final course grades, attendance, ensuring sufficient number
of instructors, granting of graduation documentation, and corrective
action for addressing deficiencies.
    The FAA is implementing the requirements of Section 135(e)(2) in
new Sec.  147.23(b) with two minor changes. First, the statutory
language in Section 135(e)(2) states that the FAA-approved system
requirements apply in the case of an AMTS that is not accredited as set
forth in paragraph (1), which is implemented as Sec.  147.23(a).
Because Sec.  147.23(a) states that an AMTS must either be accredited
within the meaning of 20 U.S.C. 1001(a)(5) or establish and maintain a
quality control system, the FAA finds it repetitive to state that Sec.
147.23(b) specifically applies to those AMTSs that are not accredited
as set forth in Sec.  147.23(a). Rather, the regulatory language has
been simplified to state that the required procedures apply to the
quality control system in Sec.  147.23(a)(2).
    Pertaining to the second minor change, the statutory provision
requires the FAA to approve a quality control system that meets the
requirements of the provision. Because the FAA's regulations apply to
the regulated community rather than the FAA itself, the FAA is slightly
revising the wording of Section 135(e)(2) to make it applicable to
certificated AMTSs. Accordingly, new Sec.  147.23(b) requires the
quality control system specified in Sec.  147.23(a)(2) to provide
procedures for recordkeeping, assessment, issuing credit, issuing of
final course grades, attendance, ensuring sufficient number of
instructors, granting of graduation documentation, and corrective
action for addressing deficiencies. As such, unless an AMTS is
accredited within the meaning of 20 U.S.C. 1001(a)(5), the school will
need to establish and maintain a quality control system that includes
procedures for each of the items in Sec.  147.23(b). Pursuant to Sec.
147.23(a)(2), this quality control system must be approved by the
Administrator.
    In order to satisfy Sec.  147.23(b), the quality control system
submitted to the FAA for approval must clearly describe the school's
procedures for each of the items listed in Sec.  147.23(b). The FAA
interprets ``recordkeeping'' to refer to procedures for producing and
retaining records related to the AMTS's operation and students'
completion of the school's curriculum. Similarly, the FAA interprets
``assessment'' to refer to procedures for evaluation of students'
completion of the school's curriculum requirements. The FAA interprets
procedures for ``issuing credit'' to refer to procedures describing how
and when the school will credit a student with completion of the
school's curriculum (or portions thereof), including if, when, and how
the school will credit prior instruction or experience. Similarly,
``attendance'' procedures should describe how the AMTS will keep track
of student attendance related to any school requirements for curriculum
completion. Procedures for granting graduation documentation should
describe the basis upon which the school will issue graduation
documentation and the format of the documentation to be issued. These
procedures should include documentation issued under Sec.  147.31,
early testing. Lastly, the FAA interprets ``deficiencies'' within the
context of the statute to refer to deficiencies or defects within the
school's quality control system, which may arise following FAA
approval.
    As previously stated, an AMTS must submit information demonstrating
compliance with Sec.  147.23 in its application pursuant to Sec.
147.5(b)(4). As such, unless an AMTS submits information demonstrating
that it is accredited in accordance with Sec.  147.23(a)(1), the school
must submit for FAA approval a quality control system that meets the
requirements of Sec.  147.23(b). Additionally, for those currently
certificated AMTSs, Section 135 of the Act repeals and replaces current
part 147 upon the effective date of the interim final rule; therefore,
schools must ensure they are either accredited or have an FAA-approved
quality control system in place and demonstrated to the FAA in order to
comply with new part 147 and continue operations as a certificated
AMTS. For additional information on submission of this information,
refer to AC 147-3.

f. Additional Requirements (Subpart B)

    Section 135(f)(1) through (4) contain additional requirements for
certificated AMTSs, including a pass rate requirement to ensure schools
provide quality training, an FAA inspection requirement, a requirement
for schools to display their AMTS certificates, and a requirement
allowing students to take the general written test required under part
65 early, provided certain conditions are met. Because those
requirements pertain to the operations of certificated ATMSs, the FAA
is implementing them in subpart B of part 147, ``Certification and
Operating Requirements.'' The following sections specify the statutory
requirements and discuss the FAA's implementation of those requirements
in more detail.
1. Minimum Passage Rate (Sec.  147.25)
    Section 135(f)(1) states that a certificated AMTS ``shall maintain
a pass rate of at least 70 percent of students who took a written,
oral, or practical (or any combination thereof) FAA mechanic tests
within 60 days of graduation for the most recent 3-year

period.'' Section 135(d)(3)(B), which contains the training
requirements for AMTSs, requires each school to provide training of a
quality that satisfies the minimum passage rate required by Section
135(f)(1). The training requirements are implemented in Sec.  147.17
and discussed in section III.d.3. of this preamble, titled ``Training
Requirements.'' This section discusses the implementation of the pass
rate requirement in Sec.  147.25.
    In implementing Section 135(f)(1), the FAA encountered two
ambiguous phrases in the statute that would have caused confusion in
industry.\61\ The first ambiguous phrase is ``within 60 days of
graduation.'' The FAA finds that a person could interpret this phrase
several ways. It could mean that a school must determine its pass rate
by using students who take a test (or combination of tests) within 60
days before graduation. Alternatively, it could mean that a school must
determine its pass rate by using students who take a test (or
combination of tests) within 60 days after graduation. Furthermore, a
person could interpret ``within 60 days of graduation'' to mean that a
school must determine its pass rate by using students who take a test
(or combination of tests) within the 60 days before or the 60 days
after graduation, thereby creating a 120-day window as opposed to a 60-
day window.
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    \61\ ``With regard to judicial review of an agency's
construction of the statute which it administers, if Congress has
not directly spoken to the precise question at issue, the question
for the court is whether the agency's answer is based on a
permissible construction of the statute.'' Chevron U.S.A., Inc. v.
Natural Resources Defense Council, Inc., 467 U.S. 837 (1984). The
primary holding of the Chevron doctrine is that a government agency
must conform to any clear legislative statements when interpreting
and applying a law, but courts will give the agency deference in
ambiguous situations as long as its interpretation is reasonable.
---------------------------------------------------------------------------

    Currently, the FAA does not have a minimum passage rate
requirement. However, in the FAA's supplemental notice of proposed
rulemaking (SNPRM) for part 147, which was published on April 16,
2019,\62\ the FAA proposed to revise the quality of instruction
requirements by replacing the national passing norms with a minimum
passage rate requirement.\63\ The FAA's proposed rule would have
required each certificated AMTS to provide instruction of sufficient
quality such that, in the prior 24 calendar months,\64\ at least 70
percent of its graduates passed on the first attempt within 60 days of
graduation each written test leading to a certificate or rating.
Commenters asked the FAA to add oral and practical tests to the
provision as well as a lookback period of 3 years rather than 24-
calendar months.\65\ Section 135(f)(1) includes the commenters' desired
changes. Because Section 135(f)(1) appears to have stemmed from the
FAA's proposed rule change in the SNPRM, the FAA is interpreting
``within 60 days of graduation'' consistent with the FAA's proposal.
Accordingly, ``within 60 days of graduation'' means ``60 days after
graduation.'' \66\ The FAA notes that the 60-day window excludes
students who test beyond 60 days after graduation from the pass rate
calculation. The FAA proposed the 60-day window in the SNPRM because
knowledge acquired through an AMTS's curriculum may be perishable if
not applied within a reasonable time after graduation.
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    \62\ SNPRM, Aviation Maintenance Technician Schools, 84 FR
15533, 15549 (Apr. 16, 2019).
    \63\ See proposed Sec.  147.37 in the SNPRM, 84 FR at 15549.
    \64\ The proposed rule would have required schools to assess
compliance on a quarterly basis.
    \65\ See FAA Rulemaking Docket No. FAA-2015-3901.
    \66\ As evidenced by the term ``graduates'' in the FAA's
proposed rule, ``within 60 days of graduation'' meant ``60 days
after graduation.''
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    The second ambiguous phrase includes the list of tests that are
used to determine the pass rate specified in the statute. Specifically,
Section 135(f)(1) requires a pass rate of at least 70 percent of
students who take ``a written, oral, or practical (or any combination
thereof) FAA mechanic tests'' within 60 days of graduation. Part 65
contains the eligibility requirements for persons seeking an FAA
mechanic certificate.\67\ To be eligible for an FAA mechanic
certificate issued under part 65, a person must pass all of the
prescribed tests within a period of 24 months.\68\ The prescribed tests
for an FAA mechanic certificate include written tests,\69\ oral tests,
and practical tests.\70\ Under the statute, for students who take one
of these tests or any combination thereof within 60 days after
graduation, the school must maintain a pass rate of at least 70 percent
of students. The statute is unambiguous with respect to when a student
takes only one test within 60 days after graduation and passes that
test; the school may count that student towards the 70 percent pass
rate. Furthermore, because the statute does not require the student to
pass the test on the first attempt,\71\ the FAA finds that the statute
is also unambiguous with respect to a student who passes a test on a
subsequent attempt within the 60 days following graduation; the school
may also count that student towards the 70 percent pass rate. It is
unclear from the statute, however, how Congress intended the ``any
combination thereof'' language to apply.
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    \67\ See 14 CFR part 65, subpart D.
    \68\ 14 CFR 65.71(a)(3).
    \69\ Section 65.75 contains the knowledge requirements for a
person seeking a mechanic certificate, including the requirement to
pass the written test. The FAA notes that there are multiple FAA
mechanic written tests. The FAA has a general written test, an
airframe written test, and a power plant written test. The tests
that an applicant must pass depend on the mechanic rating or ratings
sought.
    \70\ Section 65.79 contains the skill requirements for a person
seeking a mechanic certificate, including the requirement to pass an
oral and practical test on the rating the person seeks.
    \71\ See proposed Sec.  147.37 in the SNPRM, 84 FR 15533
(proposing to require the student to pass on the first attempt in
order to be counted towards the school's pass rate); see also Sec.
141.5(d) (requiring a pass rate of 80 percent or higher ``on the
first attempt''); Sec.  141.55(e)(2)(ii) (requiring at least 80
percent of students to pass the practical or knowledge test, as
appropriate, ``on the first attempt''); Sec.  141.63(a)(5)(ii)
(requiring at least 90 percent of students to pass the required
practical or knowledge test, or any combination thereof, for the
pilot, flight instructor, or ground instructor certificate or rating
``on the first attempt'').
---------------------------------------------------------------------------

    The phrase ``any combination thereof'' refers to a combination of
the tests prescribed by part 65 (e.g., any combination of the written,
oral, and practical tests). When a student takes a combination of
tests, however, the FAA finds that the number of tests the student must
pass to be counted towards the school's pass rate is subject to
interpretation under Section 135(f)(1). A person could interpret
Section 135(f)(1) to mean that a person who takes a combination of
tests must pass all tests taken to be considered a passing student for
purposes of determining the school's pass rate. Alternatively, a person
could interpret Section 135(f)(1) to mean that a person who takes a
combination of tests must pass only one test to be counted towards the
school's pass rate.
    To ascertain the meaning of the phrase ``any combination thereof''
in Section 135(f)(1), the FAA finds it necessary to read the phrase in
the context of Section 135(f)(1) in its entirety. In addition, the FAA
should construe statutory text so that no word or clause is rendered
superfluous, void, or insignificant.\72\ Section 135(f)(1) expressly
requires schools to maintain a

pass rate of at least 70 percent of students \73\ who take one of the
tests specified in paragraph (f)(1) or any combination of those tests.
In other words, 70 percent of students who take one of the tests or any
combination thereof must pass. Therefore, if a student takes a
combination of tests within the 60 days following graduation, the FAA
interprets the statute to mean the student must pass all tests taken to
be counted as a passing student towards the school's pass rate. The FAA
finds that this is the most reasonable interpretation when read in the
context of the 70 percent pass rate because a student who passes one
test but fails another would not be a ``passing'' student based on the
totality of the student's test results. Additionally, the FAA's
interpretation of Section 135(f)(1) gives meaning to the phrase ``any
combination thereof.''
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    \72\ ``It is a fundamental canon of statutory construction that
the words of a statute must be read in their context and with a view
to their place in the overall statutory scheme.'' Davis v. Michigan
Dept. of Treasury, 489 U.S. 803, 809 (1989). ``A statute should be
construed so that effect is given to all its provisions, so that no
part will be inoperative or superfluous, void or insignificant. . .
.''' Hibbs v. Winn, 542 U.S. 88, 101 (2004) (quoting 2A N. Singer,
Statutes and Statutory Construction section 46.06, pp. 181-186 (rev.
6th ed. 2000)). Likewise, all parts, provisions, and sections of
title 14 of the CFR must be read together in order to best ascertain
and give effect to their meaning.
    \73\ The FAA notes that the legislation specifically ties the
``pass rate of at least 70 percent'' to ``of students'' in Section
135(f)(1). The FAA construes this to be an intentional link to
students; if the intent was to base the 70 percent pass rate on
individual tests, the legislation would have expressly stated ``of
tests,'' instead of ``of students,''.
---------------------------------------------------------------------------

    If the FAA were to interpret Section 135(f)(1) to the contrary--to
mean that a student who takes a combination of tests is required to
pass only one test to be considered a passing student--the phrase ``any
combination thereof'' would be rendered superfluous. For example,
before a student may take an oral or practical test, the student must
pass the written test (except if testing under Sec.  65.80, as
previously discussed).\74\ If a student passes the written test but
subsequently fails the oral and practical tests within the 60 days
following graduation, the school would count the student as a passing
student under this interpretation. Additionally, if a student passes
the written test and subsequently passes the oral and practical tests
within the 60-day window, the school would count the student as a
passing student. As these examples illustrate, the only test that would
matter under this interpretation would be the first test taken (e.g.,
the written test under the examples).\75\ Therefore, interpreting
Section 135(f)(1) to mean that a student who takes any combination of
tests is required to pass only one of the tests (e.g., the written
test) to be counted towards the school's pass rate would render the
phrase ``any combination thereof'' meaningless.
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    \74\ See Sec.  65.75(b).
    \75\ The FAA recognizes that a student may take the general
written test prior to graduation. In this case, the student would
typically take the oral and practical tests within the 60 days
following graduation. A student may not proceed to oral or practical
testing until the student passes the required written test(s)
(except when testing under Sec.  65.80). If a student passes the
oral test but subsequently fails the practical test, that student
would be considered a passing student under the alternative
interpretation. Additionally, if a student passes the oral test and
subsequently passes the practical test, the student would be
considered a passing student. These examples further illustrate how
the phrase ``any combination thereof'' would be rendered meaningless
under the alternate interpretation.
---------------------------------------------------------------------------

    Accordingly, the FAA is adopting rule language in Sec.  147.25 that
implements Section 135(f)(1) consistent with the FAA's aforementioned
interpretation of the statutory provision. To facilitate readability
and minimize confusion, the FAA is implementing Section 135(f)(1) by
adopting three paragraphs in Sec.  147.25.\76\ Section 147.25(a)
requires each certificated AMTS to maintain the pass rate specified in
Sec.  147.25(b) for the most recent 3-year period.
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    \76\ The organization and wording of Sec.  147.25 is intended to
minimize confusion and preclude the need for legal interpretations
following the publication of this interim final rule. The FAA notes
that part 141 contains similar requirements pertaining to pass
rates. These requirements have resulted in numerous requests for
legal interpretation.
---------------------------------------------------------------------------

    Section 147.25(b) contains the pass rate required by the statute.
For students who take an FAA mechanic test under part 65 within 60 days
after graduation, at least 70 percent of students must pass the test
(or any combination thereof). These tests are listed in Sec.
147.25(b)(1) through (3).
    Lastly, to minimize confusion, the FAA is adopting Sec.  147.25(c)
to make clear that a student who takes a combination of tests within
the 60 days following graduation must pass each test taken within the
60-day window to be considered a passing student for purposes of
determining the school's pass rate. For example, if the student passes
the written test(s) and oral test but subsequently fails the practical
test within the 60 days following graduation, the school must count the
failure on the practical test as a student failure for purposes of
determining the pass rate.\77\ Table 1 contains a hypothetical in an
effort to provide clarity with respect to applying new Sec.  147.25.
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    \77\ As previously explained, however, a student is not required
to pass the test on the first attempt. Therefore, if the student
passed the practical test on a subsequent attempt within the 60-day
window specified in Sec.  147.25(b), that student would be
considered a passing student for purposes of determining the pass
rate.
    \78\ Pursuant to Section 135(f)(1) of the Act, students who take
tests after the 60-day window specified in Sec.  147.25(b) may not
be counted towards the school's pass rate.

             Table 1--Hypothetical To Determine School's Pass Rate in Accordance With Sec.   147.25
----------------------------------------------------------------------------------------------------------------
                                            Written test *             Oral test              Practical test
----------------------------------------------------------------------------------------------------------------
Student 1............................  Failed first attempt.    Passed first attempt...  Passed first attempt.
                                        Passed second attempt.
Student 2............................  Passed first attempt...  Failed first and only    Failed first and only
                                                                 attempt.                 attempt.
Student 3............................  Passed first attempt...  Passed first attempt...  Passed first attempt.
Student 4............................  Failed first attempt.    Failed first and only    Failed first and only
                                        Passed second attempt.   attempt.                 attempt.
Student 5............................  Passed first attempt...  Passed first attempt...  Passed first attempt.
Student 6............................  Passed first attempt...  Passed first attempt...  Passed first attempt.
Student 7............................  Passed first attempt...  Passed first attempt...  Passed first attempt.
Student 8............................  Passed first attempt...  Passed first attempt...  N/A.**
Student 9............................  Passed first attempt...  N/A **.................  N/A.**
Student 10...........................  Failed first attempt.    N/A **.................  N/A.**
                                        Failed second attempt.
----------------------------------------------------------------------------------------------------------------
* For simplicity the table refers to a single written test. However the number of written tests that a mechanic
  applicant must take depend on the rating sought and whether it is an initial mechanic applicant or an
  application for an additional rating.
** For purposes of Table 1, N/A means the student did not take the test within the 60 days following
  graduation.\78\

    In Table 1, the AMTS has 10 students who took one or more FAA
mechanic tests within the 60 days following graduation. For the school
to meet the pass rate, 70 percent of these students must have passed.
The AMTS would

count the following students as passing students for purposes of
determining the pass rate: Students 1, 3, 5, 6, 7, 8 and 9. The school
must count Students 2 and 4 as student failures because the students
took a combination of tests and failed two of the three tests (e.g.,
the oral and practical tests). The school must also count Student 10 as
a student failure because the student failed both attempts at the
written test. Despite the student failures, the school had 7 out of 10
students pass the tests taken within the 60-day window. As such, the
school met the 70 percent pass rate.\79\
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    \79\ The FAA notes that while an AMTS is required to meet the
pass rate in Sec.  147.25, an AMTS is also generally required to
ensure students have the knowledge and skills necessary to be
prepared to test for a mechanic certificate and associated ratings,
pursuant to Sec.  147.17(a)(3). As part of the FAA's general
inspection authority in Sec.  147.27, the FAA may review an AMTS's
pass rate data as a whole, not only as it pertains to those students
who test 60 days after graduation, to ensure that students are
prepared with the knowledge and skill to test for the applicable
certificate and/or rating.
---------------------------------------------------------------------------

    The FAA will collect pass/fail data on written, oral, and practical
tests taken by graduates of an AMTS. The FAA's data will control for
purposes of determining whether a certificated AMTS meets the minimum
pass rate requirement in new Sec.  147.25. The FAA notes that it
currently does not collect pass/fail data on the oral and practical
tests taken by AMTS graduates. The FAA will begin collecting this data
when new part 147 goes into effect. However, because of the 3-year
lookback period in the statute and the absence of current data, the FAA
will not be able to determine compliance with Sec.  147.25 for at least
3 years. Similarly, the 3-year lookback period will affect any newly
certificated AMTSs on and after the effective date of the final rule
because a new school will not have pass rate data for the most recent
3-year period. The FAA's inability to determine compliance with Sec.
147.25 for a period of time does not mean that quality of instruction
will be ignored. Rather, the FAA will issue reports containing the
pass/fail data, which will allow the FAA and certificated AMTSs to
monitor their pass rates and assess their quality of instruction.
However, current schools (for the first three years following the
effective date of the interim final rule) and newly certificated
schools will not be in violation of Sec.  147.25, even with a pass rate
lower than 70 percent, because the pass rate would not be based on the
3-year period of data.
    Table 2 shows which FAA written tests an AMTS student may take
based on the curriculum the student completed. Table 3 illustrates the
different components of the oral and practical tests that are
administered to an applicant seeking a mechanic certificate and/or
rating under part 65. The FAA notes that, for students graduating from