[Federal Register Volume 84, Number 146 (Tuesday, July 30, 2019)]
[Proposed Rules]
[Pages 36852-36859]
[FR Doc No: 2019-16052]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2019-0155; FRL-9997-30-Region 4]

Air Plan Approval; Kentucky: Cross-State Air Pollution Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve revisions to the Kentucky State Implementation Plan (SIP)
concerning the Cross-State Air Pollution Rule (CSAPR) submitted by
Kentucky on September 14, 2018, as later clarified on December 18,
2018. Under CSAPR, large electricity generating units (EGUs) in
Kentucky are subject to Federal Implementation Plans (FIPs) requiring
the units to participate in CSAPR's federal trading program for annual
emissions of nitrogen oxides (NOX), one of CSAPR's two
federal trading programs for ozone season emissions of NOX,
and one of CSAPR's two federal trading programs for annual emissions of
sulfur dioxide (SO2). This action proposes to approve into
the SIP the Commonwealth's regulations requiring large Kentucky EGUs to
participate in CSAPR state trading programs for ozone season
NOX emissions, annual NOX emissions, and annual
SO2 emissions integrated with the CSAPR federal trading
programs, replacing the corresponding FIP requirements. EPA is
proposing to approve the SIP revision concerning these CSAPR state
trading programs because the SIP revision meets the requirements of the
Clean Air Act (CAA or Act) and EPA's regulations for approval of a
CSAPR full SIP revision replacing the requirements of a CSAPR FIP.
Under the CSAPR regulations, approval of this SIP revision would
automatically eliminate Kentucky units' obligations to participate in
CSAPR's federal trading programs for ozone season NOX
emissions, annual NOX emissions, and annual SO2
emissions under the corresponding CSAPR FIPs addressing interstate
transport requirements for the 1997 annual fine particulate matter
(PM2.5) national ambient air quality standards (NAAQS), the
1997 8-hour ozone NAAQS, the 2006 24-hour PM2.5 NAAQS, and
the 2008 8-hour ozone NAAQS. Approval of the SIP revision would also
satisfy Kentucky's good neighbor obligation under the CAA to prohibit
emissions which will significantly contribute to nonattainment or
interfere with maintenance of the 1997 8-hour ozone NAAQS, 1997 annual
PM2.5 NAAQS, 2006 24-hour PM2.5 NAAQS, and the
2008 8-hour ozone NAAQS.

DATES: Comments must be received on or before August 29, 2019.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2019-0155 at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. EPA may publish any comment
received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e., on the web, cloud, or other file sharing
system). For additional submission methods, the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: D. Brad Akers, Air Regulatory
Management Section, Air and Radiation Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth Street SW, Atlanta, Georgia
30303-8960. Mr. Akers can be reached by telephone at<PHONE_NUMBER> or
via electronic mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Summary

    EPA is proposing to approve the September 14, 2018,\1\ revisions to
the

Kentucky SIP concerning CSAPR \2\ trading programs for ozone season
emissions of NOX and annual emissions of NOX and
SO2. Large EGUs in Kentucky are subject to CSAPR FIPs that
require the units to participate in the federal CSAPR NOX
Ozone Season Group 2 Trading Program, federal CSAPR NOX
Annual Trading Program, and the federal CSAPR SO2 Group 1
Trading Program. CSAPR also provides a process for the submission and
approval of SIP revisions to replace the requirements of CSAPR FIPs
with SIP requirements under which a state's units participate in CSAPR
state trading programs that are integrated with and, with certain
permissible exceptions, substantively identical to the CSAPR federal
trading programs.
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    \1\ The Commonwealth originally requested EPA to fully approve
good neighbor CAA transport obligations pursuant to CAA section
110(a)(2)(D)(i)(I) for the 1997 ozone NAAQS, the 1997
PM2.5 NAAQS, the 2006 PM2.5 NAAQS, the 2010
nitrogen dioxide (NO2) NAAQS and the 2010 SO2
NAAQS. However, CSAPR does not address transport for the 2010 1-hour
NO2 or SO2 NAAQS. Therefore, the Commonwealth
submitted a clarifying letter on December 18, 2018, to instead
request that EPA approve its transport obligations for the 1997
ozone NAAQS, the 1997 PM2.5 NAAQS, the 2006
PM2.5 NAAQS, and the 2008 ozone NAAQS.
    \2\ Federal Implementation Plans; Interstate Transport of Fine
Particulate Matter and Ozone and Correction of SIP Approvals, 76 FR
48208 (August 8, 2011) (codified as amended at 40 CFR 52.38 and
52.39 and subparts AAAAA through EEEEE of 40 CFR part 97).
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    The SIP revision proposed for approval would incorporate into
Kentucky's SIP state trading program regulations for ozone season
NOX and annual NOX and SO2 emissions
that would replace EPA's federal trading program regulations for those
emissions for the Commonwealth's units.\3\ EPA is proposing to approve
this SIP revision because it meets the requirements of the CAA and
EPA's regulations for approval of a CSAPR full SIP revision replacing a
federal trading program with a state trading program that is integrated
with and substantively identical to the federal trading program. Under
the CSAPR regulations, approval of this SIP revision would
automatically eliminate the obligations of large EGUs in Kentucky to
participate in CSAPR's federal trading programs for ozone season
NOX and annual NOX and SO2 emissions
under the corresponding CSAPR FIPs. EPA proposes to find that approval
of this SIP revision would satisfy Kentucky's obligations pursuant to
CAA section 110(a)(2)(D)(i)(I) to prohibit emissions which will
significantly contribute to nonattainment or interfere with maintenance
of the 1997 8-hour ozone NAAQS, the 1997 annual PM2.5 NAAQS,
the 2006 24-hour PM2.5 NAAQS, and the 2008 8-hour ozone
NAAQS in any other state.
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    \3\ Under Kentucky's regulations, the Commonwealth will retain
EPA's default allowance allocation methodology and EPA will remain
the implementing authority for administration of the trading
program. See sections III and IV.B.2, below.
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    Section II of this document summarizes relevant aspects of the
CSAPR federal trading programs and FIPs as well as the range of
opportunities states have to submit SIP revisions to modify or replace
the FIP requirements while continuing to rely on CSAPR's trading
programs to address the states' obligations to mitigate interstate air
pollution. Section III describes the specific conditions for approval
of such SIP revisions. Section IV contains EPA's analysis of Kentucky's
SIP submittal. Section V addresses incorporation by reference, and
Section VI sets forth EPA's proposed action on the submittal. Section
VII addresses statutory and Executive Order reviews.

II. Background on CSAPR and CSAPR-Related SIP Revisions

    EPA issued CSAPR in July 2011 to address the requirements of CAA
section 110(a)(2)(D)(i)(I) concerning interstate transport of air
pollution. As amended (including the 2016 CSAPR Update),\4\ CSAPR
requires 27 Eastern states to limit their statewide emissions of
SO2 and/or NOX in order to mitigate transported
air pollution unlawfully impacting other states' ability to attain or
maintain four NAAQS: The 1997 annual PM2.5 NAAQS, the 2006
24-hour PM2.5 NAAQS, the 1997 8-hour ozone NAAQS, and the
2008 8-hour ozone NAAQS. The CSAPR emissions limitations are defined in
terms of maximum statewide ``budgets'' for emissions of annual
SO2, annual NOX, and/or ozone season
NOX by each covered state's large EGUs. The CSAPR state
budgets are implemented in two phases of generally increasing
stringency, with the Phase 1 budgets applying to emissions in 2015 and
2016 and the Phase 2 (and CSAPR Update) budgets applying to emissions
in 2017 and later years. As a mechanism for achieving compliance with
the emissions limitations, CSAPR establishes five federal emissions
trading programs: A program for annual NOX emissions, two
geographically separate programs for annual SO2 emissions,
and two geographically separate programs for ozone-season
NOX emissions. CSAPR also establishes FIP requirements
applicable to the large EGUs in each covered state. Currently, the
CSAPR FIP provisions require each state's units to participate in up to
three of the five CSAPR trading programs.
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    \4\ See 81 FR 74504 (October 26, 2016). The CSAPR Update was
promulgated to address interstate pollution with respect to the 2008
ozone NAAQS and to address a judicial remand of certain original
CSAPR ozone season NOX budgets promulgated with respect
to the 1997 ozone NAAQS. See 81 FR at 74505. The CSAPR Update
established new emission reduction requirements addressing the more
recent NAAQS and coordinated them with the remaining emission
reduction requirements addressing the older NAAQS, so that starting
in 2017, CSAPR includes two geographically separate trading programs
for ozone season NOX emissions covering EGUs in a total
of 23 states. See 40 CFR 52.38(b)(1)-(2).
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    CSAPR includes provisions under which states may submit and EPA
will approve SIP revisions to modify or replace the CSAPR FIP
requirements while allowing states to continue to meet their transport-
related obligations using either CSAPR's federal emissions trading
programs or state emissions trading programs integrated with the
federal programs.\5\ Through such a SIP revision, a state may replace
EPA's default provisions for allocating emission allowances among the
state's units, employing any state-selected methodology to allocate or
auction the allowances, subject to timing conditions and limits on
overall allowance quantities. In the case of CSAPR's federal trading
programs for ozone season NOX emissions (or an integrated
state trading program), a state may also expand trading program
applicability to include certain smaller electricity generating
units.\6\ If a state wants to replace CSAPR FIP requirements with SIP
requirements under which the state's units participate in a state
trading program that is integrated with and identical to the federal
trading program even as to the allocation and applicability provisions,
the state may submit a SIP revision for that purpose as well. However,
no emissions budget increases or other substantive changes to the
trading program provisions are allowed. A state whose units are subject
to multiple CSAPR FIPs and federal trading programs may submit SIP
revisions to modify or replace either some or all of those FIP
requirements.
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    \5\ See 40 CFR 52.38, 52.39. States also retain the ability to
submit SIP revisions to meet their transport-related obligations
using mechanisms other than the CSAPR federal trading programs or
integrated state trading programs.
    \6\ States covered by both the CSAPR Update and the
NOX SIP Call have the additional option to expand
applicability under the CSAPR NOX Ozone Season Group 2
Trading Program to include non-electric generating units that would
have participated in the former NOX Budget Trading
Program.
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    States can submit two basic forms of CSAPR-related SIP revisions
effective for emissions control periods in 2017 or later years (or 2019
or later years in the case of the CSAPR NOX Ozone Season
Group 2 Trading Program).\7\ Specific conditions for approval of each
form of SIP revision are set forth in the CSAPR

regulations, as described in section IV below. Under the first
alternative--an ``abbreviated'' SIP revision--a state may submit a SIP
revision that upon approval replaces the default allowance allocation
and/or applicability provisions of a CSAPR federal trading program for
the state.\8\ Approval of an abbreviated SIP revision leaves the
corresponding CSAPR FIP and all other provisions of the relevant
federal trading program in place for the state's units.
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    \7\ CSAPR also provides for a third, more streamlined form of
SIP revision that is effective only for control periods in 2016 (or
2018 in the case of the CSAPR NOX Ozone Season Group 2
Trading Program) and is not relevant here. See 40 CFR 52.38(a)(3),
(b)(3), (b)(7); 52.39(d), (g).
    \8\ See 40 CFR 52.38(a)(4), (b)(4), (b)(8); 52.39(e), (h).
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    Under the second alternative--a ``full'' SIP revision--a state may
submit a SIP revision that upon approval replaces a CSAPR federal
trading program for the state with a state trading program integrated
with the federal trading program, so long as the state trading program
is substantively identical to the federal trading program or does not
substantively differ from the federal trading program except as
discussed above with regard to the allowance allocation and/or
applicability provisions.\9\ For purposes of a full SIP revision, a
state may either adopt state rules with complete trading program
language, incorporate the federal trading program language into its
state rules by reference (with appropriate conforming changes), or
employ a combination of these approaches.
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    \9\ See 40 CFR 52.38(a)(5), (b)(5), (b)(9); 52.39(f), (i).
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    The CSAPR regulations identify several important consequences and
limitations associated with approval of a full SIP revision. First,
upon EPA's approval of a full SIP revision as correcting the deficiency
in the state's implementation plan that was the basis for a particular
set of CSAPR FIP requirements, the obligation to participate in the
corresponding CSAPR federal trading program is automatically eliminated
for units subject to the state's jurisdiction without the need for a
separate EPA withdrawal action, so long as EPA's approval of the SIP is
full and unconditional.\10\ Second, approval of a full SIP revision
does not terminate the obligation to participate in the corresponding
CSAPR federal trading program for any units located in any Indian
country within the borders of the state, and if and when a unit is
located in Indian country within a state's borders, EPA may modify the
SIP approval to exclude from the SIP, and include in the surviving
CSAPR FIP instead, certain trading program provisions that apply
jointly to units in the state and to units in Indian country within the
state's borders.\11\
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    \10\ See 40 CFR 52.38(a)(6), (b)(10)(i); 52.39(j).
    \11\ See 40 CFR 52.38(a)(5)(iv)-(v), (a)(6), (b)(5)(v)-(vi),
(b)(9)(vi)-(vii), (b)(10)(i); 52.39(f)(4)-(5), (i)(4)-(5), (j).
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    Finally, if at the time a full SIP revision is approved EPA has
already started recording allocations of allowances for a given control
period to a state's units, the federal trading program provisions
authorizing EPA to complete the process of allocating and recording
allowances for that control period to those units will continue to
apply, unless EPA's approval of the SIP revision provides
otherwise.\12\
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    \12\ See 40 CFR 52.38(a)(7), (b)(11)(i); 52.39(k).
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III. Conditions for Approval of CSAPR-Related SIP Revisions

    Each CSAPR-related abbreviated or full SIP revision must meet the
following general submittal conditions:
     Timeliness and completeness of SIP submittal. The SIP
submittal completeness criteria in section 2.1 of appendix V to 40 CFR
part 51 apply. In addition, if a state wants to replace the default
allowance allocation or applicability provisions of a CSAPR federal
trading program, the complete SIP revision must be submitted to EPA by
December 1 of the year before the deadlines described below for
submitting allocation or auction amounts to EPA for the first control
period for which the state wants to replace the default allocation and/
or applicability provisions.\13\ This SIP submission deadline is
inoperative in the case of a SIP revision that seeks only to replace a
CSAPR FIP and federal trading program with a SIP and a substantively
identical state trading program integrated with the federal trading
program.
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    \13\ See 40 CFR 52.38(a)(4)(ii), (a)(5)(vi), (b)(4)(iii),
(b)(5)(vii), (b)(8)(iv), (b)(9)(viii); 52.39(e)(2), (f)(6), (h)(2),
(i)(6).
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    In addition to the general submittal conditions, a CSAPR-related
abbreviated or full SIP seeking to address the allocation or auction of
emission allowances must meet the following further conditions:
     Methodology covering all allowances potentially requiring
allocation. For each federal trading program addressed by a SIP
revision, the SIP revision's allowance allocation or auction
methodology must replace both the federal program's default allocations
to existing units \14\ at 40 CFR 97.411(a), 97.511(a), 97.611(a),
97.711(a), or 97.811(a), as applicable, and the federal trading
program's provisions for allocating allowances from the new unit set-
aside (NUSA) for the state at 40 CFR 97.411(b)(1) and 97.412(a),
97.511(b)(1) and 97.512(a), 97.611(b)(1) and 97.612(a), 97.711(b)(1)
and 97.712(a), or 97.811(b)(1) and 97.812(a), as applicable.\15\ In the
case of a state with Indian country within its borders, while the SIP
revision may neither alter nor assume the federal program's provisions
for administering the Indian country NUSA for the state, the SIP
revision must include procedures addressing the disposition of any
otherwise unallocated allowances from an Indian country NUSA that may
be made available for allocation by the state after EPA has carried out
the Indian country NUSA allocation procedures.\16\
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    \14\ In the context of the approval conditions for CSAPR-related
SIP revisions, an ``existing unit'' is a unit for which EPA has
determined default allowance allocations (which could be allocations
of zero allowances) in the rulemakings establishing and amending
CSAPR. Spreadsheets showing EPA's default allocations to existing
units are posted at https://www.epa.gov/csapr/unit-level-allocations-under-csapr-transport-rule-fips-after-tolling and
https://www.epa.gov/airmarkets/final-cross-state-air-pollution-rule-update.
    \15\ See 40 CFR 52.38(a)(4)(i), (a)(5)(i), (b)(4)(ii),
(b)(5)(ii), (b)(8)(iii), (b)(9)(iii); 52.39(e)(1), (f)(1), (h)(1),
(i)(1).
    \16\ See 40 CFR 97.412(b)(10)(ii), 97.512(b)(10)(ii),
97.612(b)(10)(ii), 97.712(b)(10)(ii), 97.812(b)(10)(ii).
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     Assurance that total allocations will not exceed the state
budget. For each federal trading program addressed by a SIP revision,
the total amount of allowances auctioned or allocated for each control
period under the SIP revision (prior to the addition by EPA of any
unallocated allowances from any Indian country NUSA for the state)
generally may not exceed the state's emissions budget for the control
period less the sum of the amount of any Indian country NUSA for the
state for the control period and any allowances already allocated to
the state's units for the control period and recorded by EPA.\17\ Under
its SIP revision, a state is free to not allocate allowances to some or
all potentially affected units, to allocate or auction allowances to
entities other than potentially affected units, or to allocate or
auction fewer than the maximum permissible quantity of allowances and
retire the remainder. Under the CSAPR NOX Ozone Season Group
2 Trading Program only, additional allowances may be allocated if the
state elects to expand applicability to non-electric generating units
that would have been subject to the NOX Budget Trading
Program established for compliance with the NOX SIP
Call.\18\
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    \17\ 40 CFR 52.38(a)(4)(i)(A), (a)(5)(i)(A), (b)(4)(ii)(A),
(b)(5)(ii)(A), (b)(8)(iii)(A), (b)(9)(iii)(A); 52.39(e)(1)(i),
(f)(1)(i), (h)(1)(i), (i)(1)(i).
    \18\ See 40 CFR 52.38(b)(8)(iii)(A), (b)(9)(iii)(A).
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     Timely submission of state-determined allocations to EPA.
The SIP

revision must require the state to submit to EPA the amounts of any
allowances allocated or auctioned to each unit for each control period
(other than allowances initially set aside in the state's allocation or
auction process and later allocated or auctioned to such units from the
set-aside amount) by the following deadlines.\19\ Note that the
submission deadlines differ for amounts allocated or auctioned to units
considered existing units for CSAPR purposes and amounts allocated or
auctioned to other units.
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    \19\ See 40 CFR 52.38(a)(4)(i)(B)-(C), (a)(5)(i)(B)-(C),
(b)(4)(ii)(B)-(C), (b)(5)(ii)(B)-(C), (b)(8)(iii)(B)-(C),
(b)(9)(iii)(B)-(C); 52.39(e)(1)(ii)-(iii), (f)(1)(ii)-(iii),
(h)(1)(ii)-(iii), (i)(1)(ii)-(iii).

CSAPR NOX Annual, CSAPR NOX Ozone Season Group 1, CSAPR SO2 Group 1, and
                   CSAPR SO2 Group 2 Trading Programs
------------------------------------------------------------------------
                                                        Deadline for
                              Year of the  control  submission to EPA of
            Units                    period            allocations or
                                                       auction results
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Existing....................  2017 and 2018.......  June 1, 2016.
                              2019 and 2020.......  June 1, 2017.
                              2021 and 2022.......  June 1, 2018.
                              2023 and later years  June 1 of the fourth
                                                     year before the
                                                     year of the control
                                                     period.
Other.......................  All years...........  July 1 of the year
                                                     of the control
                                                     period.
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             CSAPR NOX Ozone Season Group 2 Trading Program
------------------------------------------------------------------------
                                                        Deadline for
                               Year of the control  submission to EPA of
            Units                    period            allocations or
                                                       auction results
------------------------------------------------------------------------
Existing....................  2019 and 2020.......  June 1, 2018.
                              2021 and 2022.......  June 1, 2019.
                              2023 and 2024.......  June 1, 2020.
                              2025 and later years  June 1 of the fourth
                                                     year before the
                                                     year of the control
                                                     period.
Other.......................  All years...........  July 1 of the year
                                                     of the control
                                                     period.
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     No changes to allocations already submitted to EPA or
recorded. The SIP revision must not provide for any change to the
amounts of allowances allocated or auctioned to any unit after those
amounts are submitted to EPA or any change to any allowance allocation
determined and recorded by EPA under the federal trading program
regulations.\20\
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    \20\ See 40 CFR 52.38(a)(4)(i)(D), (a)(5)(i)(D), (b)(4)(ii)(D),
(b)(5)(ii)(D), (b)(8)(iii)(D), (b)(9)(iii)(D); 52.39(e)(1)(iv),
(f)(1)(iv), (h)(1)(iv), (i)(1)(iv).
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     No other substantive changes to federal trading program
provisions. The SIP revision may not substantively change any other
trading program provisions, except in the case of a SIP revision that
also expands program applicability as described below.\21\ Any new
definitions adopted in the SIP revision (in addition to the federal
trading program's definitions) may apply only for purposes of the SIP
revision's allocation or auction provisions.\22\
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    \21\ See 40 CFR 52.38(a)(4), (a)(5), (b)(4), (b)(5), (b)(8),
(b)(9); 52.39(e), (f), (h), (i).
    \22\ See 40 CFR 52.38(a)(4)(i), (a)(5)(ii), (b)(4)(ii),
(b)(5)(iii), (b)(8)(iii), (b)(9)(iv); 52.39(e)(1), (f)(2), (h)(1),
(i)(2).
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    In addition to the general submittal conditions, a CSAPR-related
abbreviated or full SIP revision seeking to expand applicability under
the CSAPR NOX Ozone Season Group 1 or CSAPR NOX
Ozone Season Group 2 Trading Programs (or an integrated state trading
program) must meet the following further conditions:
     Only electricity generating units with nameplate capacity
of at least 15 MWe. The SIP revision may expand applicability only to
additional fossil fuel-fired boilers or combustion turbines serving
generators producing electricity for sale, and only by lowering the
generator nameplate capacity threshold used to determine whether a
particular boiler or combustion turbine serving a particular generator
is a potentially affected unit. The nameplate capacity threshold
adopted in the SIP revision may not be less than 15 MWe.\23\ In
addition or alternatively, applicability under the CSAPR NOX
Ozone Season Group 2 Trading Program may be expanded to non-electric
generating units that would have been subject to the NOX
Budget Trading Program established for compliance with the
NOX SIP Call.\24\
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    \23\ See 40 CFR 52.38(b)(4)(i), (b)(5)(i), (b)(8)(i), (b)(9)(i).
    \24\ See 40 CFR 52.38(b)(8)(ii), (b)(9)(ii).
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     No other substantive changes to federal trading program
provisions. The SIP revision may not substantively change any other
trading program provisions, except in the case of a SIP revision that
also addresses the allocation or auction of emission allowances as
described above.\25\
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    \25\ See 40 CFR 52.38(b)(4), (b)(5), (b)(8), (b)(9).
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    In addition to the general submittal conditions and the other
applicable conditions described above, a CSAPR-related full SIP
revision must meet the following further conditions:
     Complete, substantively identical trading program
provisions. The SIP revision must adopt complete state trading program
regulations substantively identical to the complete federal trading
program regulations at 40 CFR 97.402 through 97.435, 97.502 through
97.535, 97.602 through 97.635, 97.702 through 97.735, or 97.802 through
97.835, as applicable, except as described above in the case of a SIP
revision that seeks to replace the default allowance allocation and/or
applicability provisions.\26\
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    \26\ See 40 CFR 52.38(a)(5), (b)(5), (b)(9); 52.39(f), (i).
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     Only non-substantive substitutions for the term ``State.''
The SIP revision may substitute the name of the state for the term
``State'' as used in the federal trading program regulations, but only
to the extent that EPA determines that the substitutions do not
substantively change the trading program regulations.\27\
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    \27\ See 40 CFR 52.38(a)(5)(iii), (b)(5)(iv), (b)(9)(v);
52.39(f)(3), (i)(3).

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     Exclusion of provisions addressing units in Indian
country. The SIP revision may not impose requirements on any unit in
any Indian country within the state's borders and must not include the
federal trading program provisions governing allocation of allowances
from any Indian country NUSA for the state.\28\
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    \28\ See 40 CFR 52.38(a)(5)(iv), (b)(5)(v), (b)(9)(vi);
52.39(f)(4), (i)(4).
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IV. Kentucky's SIP Submittal and EPA's Analysis

A. Kentucky's Submittal

    In CSAPR and the CSAPR Update, EPA found that air pollution
transported from Kentucky unlawfully affects other states' ability to
attain or maintain the 1997 8-hour ozone NAAQS, the 1997 annual
PM2.5 NAAQS, the 2006 24-hour PM2.5 NAAQS, and
the 2008 8-hour ozone NAAQS. As discussed below, Kentucky's submittal
addresses each of these NAAQS.
    In the 2011 CSAPR rulemaking, among other findings, EPA determined
that air pollution transported from Kentucky would unlawfully affect
other states' ability to attain and maintain the 1997 annual
PM2.5 NAAQS and the 2006 24-hour PM2.5 NAAQS,
established annual NOX and SO2 budgets for
Kentucky's EGUs representing full remedies for the Commonwealth's
interstate transport obligations with respect to these NAAQS, and
implemented the budgets by including the EGUs in annual NOX
and SO2 trading programs.\29\ Consequently, Kentucky's units
meeting the CSAPR applicability criteria are currently subject to CSAPR
FIPs that require participation in the CSAPR NOX Annual
Trading Program and the CSAPR SO2 Group 1 Trading Program in
order to address, in full, the Commonwealth's interstate transport
obligations with respect to both the 1997 annual PM2.5 NAAQS
and the 2006 24-hour PM2.5 NAAQS.\30\
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    \29\ See 76 FR at 48209-13.
    \30\ See 40 CFR 52.38(a)(2); 52.39(b); 52.940(a); 52.941(a).
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    In the 2011 CSAPR rulemaking, EPA also determined that air
pollution transported from Kentucky would unlawfully affect other
states' ability to attain or maintain the 1997 8-hour ozone NAAQS,
established an ozone season NOX budget for Kentucky's EGUs
representing a partial remedy for the Commonwealth's interstate
transport obligations with respect to that NAAQS, and implemented the
budget by including the EGUs in an ozone season NOX trading
program.\31\ Later, in the 2016 CSAPR Update rulemaking, using updated
data and analyses, EPA determined that air pollution transported from
Kentucky would unlawfully affect other states' ability to maintain the
2008 8-hour ozone NAAQS, established an ozone season NOX
budget for Kentucky's EGUs representing a partial remedy for the
Commonwealth's interstate transport obligations with respect to that
NAAQS, and implemented the budget by including the units in a new ozone
season NOX trading program.\32\ Also in the CSAPR Update
rulemaking, EPA determined that Kentucky's previous ozone season
NOX budget established in the 2011 CSAPR rulemaking as a
partial remedy for the Commonwealth's interstate transport obligations
with respect to the 1997 8-hour ozone NAAQS now represents a full
remedy with respect to that NAAQS \33\ and coordinated compliance
requirements by allowing compliance with the new CSAPR Update budget to
serve the purpose of addressing the Commonwealth's obligations with
respect to the 1997 and 2008 8-hour ozone NAAQS.\34\ Most recently, in
a 2018 action approving a revision to Kentucky's SIP, based on further
updated data and analyses, EPA determined that Kentucky's ozone season
NOX budget established in the 2016 CSAPR Update rulemaking
as a partial remedy for the Commonwealth's interstate transport
obligations with respect to the 2008 8-hour ozone NAAQS now represents
a full remedy with respect to that NAAQS.\35\ Consequently, Kentucky
units meeting the CSAPR applicability criteria are currently subject to
CSAPR Update FIP requirements for participation in the CSAPR
NOX Ozone Season Group 2 Trading Program in order to
address, in full, the Commonwealth's interstate transport obligations
with respect to both the 1997 8-hour ozone NAAQS and the 2008 8-hour
ozone NAAQS.\36\
---------------------------------------------------------------------------

    \31\ See 76 FR at 48209-13.
    \32\ See 81 FR at 74507-09.
    \33\ Id. at 74525.
    \34\ Id. at 74563 n.169.
    \35\ 83 FR 33730, 33759 (July 17, 2018).
    \36\ See 40 CFR 52.38(b)(2)(iii); 52.940(b)(2).
---------------------------------------------------------------------------

    If approved, Kentucky's September 14, 2018, SIP submission would
incorporate into the SIP CSAPR state trading program regulations
implementing the CSAPR and CSAPR Update emissions budgets for Kentucky
units' ozone season NOX, annual SO2, and annual
NOX emissions, thereby fully addressing through SIP
provisions the Commonwealth's interstate transport obligations with
respect to the 1997 8-hour ozone NAAQS, the 1997 annual
PM2.5 NAAQS, the 2006 24-hour PM2.5 NAAQS, and
the 2008 8-hour ozone NAAQS. As described in section II, pursuant to
the CSAPR regulations, full and unconditional approval of the SIP
revision by EPA would therefore automatically eliminate Kentucky EGU's
obligations under the CSAPR and CSAPR Update FIPs to participate in the
CSAPR federal trading programs.\37\
---------------------------------------------------------------------------

    \37\ See 40 CFR 52.38(a)(6), (b)(10)(i); 52.39(j).
---------------------------------------------------------------------------

    The SIP submittal includes the addition of the following Kentucky
Administrative Regulations: 401 KAR 51:240 ``Cross-State Air Pollution
Rule (CSAPR) NOX annual trading program,'' 401 KAR 51:250
``Cross-State Air Pollution Rule (CSAPR) NOX ozone season
group 2 trading program,'' and 401 KAR 51:260 ``Cross-State Air
Pollution Rule (CSAPR) SO2 group 1 trading program.'' In
general, Kentucky's CSAPR state trading program rules are designed to
replace the corresponding federal trading program regulations. For
example, 401 KAR 51:240 ``Cross-State Air Pollution Rule (CSAPR)
NOX annual trading program'' is designed to replace subpart
AAAAA of 40 CFR part 97 (i.e., 40 CFR 97.401 through 97.435).
    With regard to form, the CSAPR state trading program rules
generally incorporate the corresponding federal trading program section
or sections by reference, with a few exceptions.
    With regard to content, the rules for each Kentucky CSAPR state
trading program differ from the corresponding CSAPR federal trading
program regulations in two main ways, as further described below.
First, the applicability provisions in the Kentucky rules require
participation in Kentucky CSAPR state trading programs only for units
in Kentucky, not for units in any other state or in Indian country
within the borders of Kentucky or any other state. Second, the Kentucky
rules omit some federal trading program provisions not applicable to
Kentucky's state trading programs, including provisions setting forth
the amounts of emissions budgets, NUSAs, Indian country NUSAs, and
variability limits for other states and provisions relating to EPA's
administration of Indian country NUSAs.
    The September 14, 2018, SIP revisions were submitted to EPA by a
letter from the Secretary of the Kentucky Energy and Environment
Cabinet, as clarified in a subsequent December 18, 2018, letter. The
letter and enclosures describe steps taken by Kentucky to provide
public notice prior to adoption of the state rules.

B. EPA's Analysis of Kentucky's Submittal

    At this time, EPA is proposing to take action on Kentucky SIP
submissions, which are designed to replace the federal CSAPR
NOX Ozone Season Group 2 Trading Program, federal CSAPR
NOX Annual Trading Program, and the federal CSAPR
SO2 Group 1 Trading Program with regard to Kentucky units.
1. Timeliness and Completeness of Submittal
    Kentucky submitted the SIP revisions to EPA on September 14, 2018,
and EPA has determined that the submittals comply with the applicable
minimum completeness criteria in section 2.3 of appendix V to 40 CFR
part 51. The SIP submission deadline specified in 40 CFR
52.38(a)(5)(vi), 52.38(b)(9)(viii), and 52.39(f)(6) is defined with
reference to certain separate CSAPR deadlines for submission of state-
determined allowance allocations to EPA and is therefore inoperative in
the case of a SIP revision that does not seek to replace the EPA-
administered allowance allocation methodology and process set forth in
the federal trading program rules. Because Kentucky is seeking to
replace the federal trading program rules with substantively identical
state trading program rules and is not seeking to replace the EPA-
administered allowance allocation methodology and process, the SIP
submission deadline does not apply.\38\
---------------------------------------------------------------------------

    \38\ See 40 CFR 52.38(a)(5)(vi), 52.38(b)(9)(viii), and
52.39(f)(6).
---------------------------------------------------------------------------

2. Complete, Substantively Identical Trading Program Provisions
    The Kentucky rules adopt state budgets identical to the Ozone
Season Group 2 NOX budgets and the Phase 2 NOX
Annual and SO2 Group 1 budgets for Kentucky under the
federal trading programs. The Kentucky rules also adopt almost all of
the provisions of the federal CSAPR NOX Ozone Season Group 2
Trading Program, federal CSAPR NOX Annual Trading Program
and federal CSAPR SO2 Group 1 Trading Program, including the
default allowance allocation provisions. Under the Commonwealth's
rules, EPA would administer the programs and would retain the authority
to allocate allowances.
    With the following exceptions, the Kentucky rules comprising
Kentucky's CSAPR state trading program for ozone season NOX
emissions incorporate by reference all of the provisions of 40 CFR
97.801 through 97.835, the rules comprising the state program for
annual NOX emissions incorporate by reference all of the
provisions of 40 CFR 97.401 through 97.435, and the rules comprising
the state program for SO2 emissions incorporate by reference
all of the provisions of 40 CFR 97.601 through 97.635.
    The first exception is that, as discussed subsequently in section
IV.B.3, 401 KAR 51:240, Section 2, 401 KAR 51:250, Section 2, and 401
KAR 51:260, Section 2, of the Kentucky rules limit applicability of the
rules to units located in Kentucky. This modification of the
applicability provisions in the federal trading program rules is
appropriate for state trading program rules which necessarily must be
designed to apply only to sources subject to the state's jurisdiction.
    The second exception is that the Kentucky rules do not incorporate
the complete provisions of 40 CFR 97.410, 97.810, and 97.610 concerning
the amounts of emissions budgets, NUSAs, Indian country NUSAs, and
variability limits for the three CSAPR federal trading programs.
Instead, Kentucky rules 401 KAR 51:240, Section 3(7), 401 KAR 51:250,
Section 3(7), and 401 KAR 51:260, Section 3(7) adopt full-text
replacement provisions specifying (and describing the relationships
among) the emissions budget, NUSA, and variability limit amounts for
the three trading programs only as applicable to Kentucky units and
only for control periods occurring after 2016. The full-text
replacement provisions adopted by Kentucky are substantively identical
to the provisions of the respective federal rules that would apply to
Kentucky units after 2016. For purposes of Kentucky's state trading
program rules, which apply only to Kentucky units and only starting in
2018, the omission of provisions of the corresponding federal rules
that apply to units located in other states or Indian country and
provisions that applied to Kentucky units only for control periods
before 2017 is not a substantive change from the federal trading
program regulations.
    The third exception is that Kentucky rules 401 KAR 51:240, 51:250,
and 51:260 omit 40 CFR 97.411(b)(2), 97.411(c)(5)(iii), 97.412(b),
97.421(h), 97.421(j), 97.811(b)(2), 97.811(c)(5)(iii), 97.812(b),
97.821(h), 97.821(j), 97.611(b)(2), 97.611(c)(5)(iii), 97.612(b),
97.621(h), and 97.621(j), concerning EPA's administration of Indian
country NUSAs. Omission of these provisions from Kentucky's state
trading program rules is required, as discussed in section IV.B.4.
    The final exception is that, only for purposes of units located in
the Commonwealth, Kentucky rules 401 KAR 51.240, Section 1(2), 401 KAR
51.250, Section 1(2), and 401 KAR 51.260, Section 1(2), define the term
``Permitting Authority'' as the Kentucky Energy and Environmental
Cabinet. The definition in the federal trading program regulations is
not altered with respect to units located in other states or Indian
country. Because the term ``permitting authority'' in the federal
trading program regulations is intended to reference the appropriate
permitting authority for each unit under 40 CFR part 70 or part 71, the
definition in Kentucky's rules merely adds specificity without causing
a substantive change.
    None of the omissions undermine the completeness of Kentucky's
state trading program regulations, and EPA has determined that
Kentucky's proposed SIP revision makes no substantive changes to the
provisions of the federal trading program regulations. Thus, Kentucky's
SIP revision meets the condition under 40 CFR 52.38(a)(5), 52.38(b)(9),
and 52.39(f) that the SIP revision must adopt complete state trading
program regulations substantively identical to the complete federal
trading program regulations at 40 CFR 97.402 through 97.435, 40 CFR
97.802 through 97.835, and 97.602 through 97.635, respectively, except
to the extent permitted in the case of a SIP revision that seeks to
replace the default allowance allocation and/or applicability
provisions.
3. Only Non-Substantive Substitutions for the Term ``State''
    401 KAR 51:240, Section 3(2)(b), 401 KAR 51:250, Section 3(2)(b),
and 401 KAR 51:260, Section 3(2)(b) of the Kentucky rules substitute
the phrase ``in Kentucky,'' for the phrase ``in a State (and Indian
country within the borders of such State)'' in the corresponding
federal trading program regulations at 40 CFR 97.404(a)(1) and (b),
97.804(a)(1) and (b), and 97.604(a)(1) and (b), respectively. These
provisions of the Kentucky rules define the units that are required to
participate in Kentucky's CSAPR state trading programs. The
substitutions appropriately exclude all units located in other states
or in Indian country within the borders of any state, thereby limiting
the applicability of Kentucky's state trading programs to units that
are subject to Kentucky's jurisdiction. These substitutions do not
substantively change the provisions of CSAPR's federal trading program
regulations. The remaining Kentucky rules do not substitute for the
term ``State'' as used in the federal trading program regulations.
Kentucky's SIP revision therefore meets the condition under 40 CFR
52.38(a)(5)(iii),

52.38(b)(9)(v), and 52.39(f)(3) that the SIP revision may substitute
the name of the state for the term ``State'' as used in the federal
trading program regulations, but only to the extent that EPA determines
that the substitutions do not substantively change the provisions of
the federal trading program regulations.
4. Exclusion of Provisions Addressing Indian Country
    As discussed above in section IV.B.3, paragraphs 401 KAR 51:240,
Section 3(2)(b), 401 KAR 51:250, Section 3(2)(b), and 401 KAR 51:260,
Section 3(2)(b) of the Kentucky rules do not include units in Indian
country within Kentucky's borders in the applicable requirements of the
Commonwealth's rules. In addition, as required under 40 CFR
52.38(a)(5)(iv), 52.38(b)(9)(vi), and 52.39(f)(4), Kentucky's SIP
revisions exclude federal trading program provisions related to EPA's
process for allocating and recording allowances from Indian country
NUSAs (i.e., 40 CFR 97.411(b)(2), 97.411(c)(5)(iii), 97.412(b),
97.421(h), 97.421(j), 97.811(b)(2), 97.811(c)(5)(iii), 97.812(b),
97.821(h), 97.821(j), 97.611(b)(2), 97.611(c)(5)(iii), 97.612(b),
97.621(h), and 97.621(j)). Kentucky's SIP revision therefore meets the
conditions under 52.38(a)(5)(iv), 52.38(b)(9)(vi), and 52.39(f)(4) that
a SIP submittal must not impose any requirement on any unit in Indian
country within the borders of the Commonwealth and must exclude certain
provisions related to administration of Indian country NUSAs.

V. Incorporation by Reference

    In this document, EPA is proposing to include in a final EPA rule
regulatory text that includes incorporation by reference. In accordance
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by
reference the Kentucky Regulations 401 KAR 51:240, entitled ``Cross-
State Air Pollution Rule (CSAPR) NOX annual trading
program''; 401 KAR 51:250, entitled ``Cross-State Air Pollution Rule
(CSAPR) NOX ozone season group 2 trading program''; and 401
KAR 51.260, entitled ``Cross-State Air Pollution Rule SO2
(CSAPR) group 1 trading program.'' The rules became state-effective as
of July 5, 2018. EPA has made, and will continue to make, these
materials generally available through www.regulations.gov and at the
EPA Region 4 office (please contact the person identified in the ``For
Further Information Contact'' section of this preamble for more
information).

VI. Proposed Action

    EPA is proposing to approve Kentucky's September 14, 2018, SIP
submittals concerning the establishment for Kentucky units of CSAPR
state trading programs for ozone season NOX emissions and
annual NOX and SO2 emissions. The proposed
revisions would adopt into the SIP state trading program rules codified
in Kentucky regulations at 401 KAR 51:240, ``Cross-State Air Pollution
Rule (CSAPR) NOX annual trading program,'' 401 KAR 51:250,
``Cross-State Air Pollution Rule (CSAPR) NOX ozone season
group 2 trading program,'' and 401 KAR 51.260, ``Cross-State Air
Pollution Rule (CSAPR) SO2 group 1 trading program.'' These
Kentucky CSAPR state trading programs would be integrated with the
federal CSAPR NOX Annual Trading Program, the federal CSAPR
NOX Ozone Season Group 2 Trading Program, and the federal
CSAPR SO2 Group 1 Trading Program, respectively, and would
be substantively identical to the federal trading programs.\39\ If EPA
approves these SIP revisions, Kentucky units therefore would generally
be required to meet requirements under Kentucky's CSAPR state trading
programs equivalent to the requirements the units otherwise would have
been required to meet under the corresponding CSAPR federal trading
programs. EPA is proposing to approve the September 14, 2018, SIP
revisions because they meet the requirements of the CAA and EPA's
regulations for approval of a CSAPR full SIP revision replacing a
federal trading program with a state trading program that is integrated
with and substantively identical to the federal trading program except
for permissible differences, as discussed in section IV of this action.
---------------------------------------------------------------------------

    \39\ As previously discussed in sections III and IV.B.2, under
Kentucky's regulations, the Commonwealth will retain EPA's default
allowance allocation methodology and EPA will remain the
implementing authority for administration of the trading program.
---------------------------------------------------------------------------

    EPA promulgated FIPs requiring Kentucky units to participate in the
federal CSAPR NOX Ozone Season Group 2 Trading Program, the
federal CSAPR NOX Annual Trading Program, and the federal
CSAPR SO2 Group 1 Trading Program in order to address
Kentucky's obligations under CAA section 110(a)(2)(D)(i)(I) with
respect to the 1997 8-hour ozone NAAQS, 1997 annual PM2.5
NAAQS, 2006 24-hour PM2.5 NAAQS, and 2008 8-hour ozone NAAQS
in the absence of SIP provisions addressing those requirements.
Approval of the Kentucky SIP submittals adopting CSAPR state trading
program rules for ozone season NOX and annual NOX
and SO2 substantively identical to the corresponding CSAPR
federal trading program regulations would satisfy Kentucky's obligation
pursuant to CAA section 110(a)(2)(D)(i)(I) to prohibit emissions which
will significantly contribute to nonattainment or interfere with
maintenance of these NAAQS in any other state and therefore would
correct the same deficiency in the SIP that otherwise would be
corrected by those CSAPR FIPs. Under the CSAPR regulations, upon EPA's
full and unconditional approval of a SIP revision as correcting the
SIP's deficiency that is the basis for a particular CSAPR FIP, the
obligation to participate in the corresponding CSAPR federal trading
program is automatically eliminated for units subject to the state's
jurisdiction (but not for any units located in any Indian country
within the state's borders).\40\ Approval of Kentucky's SIP submittal
establishing CSAPR state trading program rules for ozone season
NOX emissions and annual NOX and SO2
emissions therefore would result in automatic termination of the
obligations of Kentucky units to participate in the federal CSAPR
NOX Ozone Season Group 2 Trading Program, the federal CSAPR
NOX Annual Trading Program, and the federal CSAPR
SO2 Group 1 Trading Program.
---------------------------------------------------------------------------

    \40\ See 40 CFR 52.38(a)(6), (b)(10)(i); 52.39(j); see also 40
CFR 52.940(a)(1), (b)(2); 52.941(a).
---------------------------------------------------------------------------

VII. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. This action merely
proposes to approve state law as meeting Federal requirements and does
not impose additional requirements beyond those imposed by state law.
For that reason, this proposed action:
     Is not a significant regulatory action subject to review
by the Office of Management and Budget under Executive Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempted under
Executive Order 12866;
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);

     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or
in any other area where EPA or an Indian tribe has demonstrated that a
tribe has jurisdiction. In those areas of Indian country, the rule does
not have tribal implications as specified by Executive Order 13175 (65
FR 67249, November 9, 2000), nor will it impose substantial direct
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Sulfur
oxides.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: July 17, 2019.
Mary S. Walker,
Regional Administrator, Region 4.
[FR Doc. 2019-16052 Filed 7-29-19; 8:45 am]
 BILLING CODE 6560-50-P


(a) Except as provided in paragraphs (b), (c), and (d) of this
section, a person who is applying for an airline transport pilot
certificate with an airplane category and class rating must have at
least 1,500 hours of total time as a pilot that includes at least:
* * * * *
    (5) 250 hours of flight time in an airplane as a pilot in command,
or when serving as a required second in command flightcrew member
performing the duties of pilot in command while under the supervision
of a pilot in command, or any combination thereof, which includes at
least--
* * * * *
    (c) A commercial pilot may log second-in-command pilot time toward
the aeronautical experience requirements of paragraph (a) of this
section and the aeronautical experience requirements in Sec.  61.160,
provided the pilot is employed by a part 119 certificate holder
authorized to conduct operations under part 135 of this chapter and the
second-in-command pilot time is obtained in operations conducted for
the certificate holder under part 91 or 135 of this chapter when a
second pilot is not required under the type certification of the
aircraft or the regulations under which the flight is being conducted,
and the following requirements are met--
    (1) The experience must be accomplished as part of a second-in-
command professional development program approved by the Administrator
under Sec.  135.99 of this chapter;
    (2) The flight operation must be conducted in accordance with the
certificate holder's operations specification for the second-in-command
professional development program;
    (3) The pilot in command of the operation must certify in the
pilot's logbook that the second-in-command pilot time was accomplished
under this section; and
    (4) The pilot time may not be logged as pilot-in-command time even
when the pilot is the sole manipulator of the controls and may not be
used to meet the aeronautical experience requirements in paragraph
(a)(5) of this section.
    (d) A commercial pilot may log the following flight engineer flight
time toward the 1,500 hours of total time as a pilot required by
paragraph (a) of this section and the total time as a pilot required by
Sec.  61.160:
    (1) Flight-engineer time, provided the time--
    (i) Is acquired in an airplane required to have a flight engineer
by the airplane's flight manual or type certificate;
    (ii) Is acquired while engaged in operations under part 121 of this

chapter for which a flight engineer is required;
    (iii) Is acquired while the person is participating in a pilot
training program approved under part 121 of this chapter; and
    (iv) Does not exceed more than 1 hour for each 3 hours of flight
engineer flight time for a total credited time of no more than 500
hours.
    (2) Flight-engineer time, provided the flight time--
    (i) Is acquired as a U.S. Armed Forces' flight engineer crewmember
in an airplane that requires a flight engineer crewmember by the flight
manual;
    (ii) Is acquired while the person is participating in a flight
engineer crewmember training program for the U.S. Armed Forces; and
    (iii) Does not exceed 1 hour for each 3 hours of flight engineer
flight time for a total credited time of no more than 500 hours.
    (e) An applicant who credits time under paragraphs (b), (c), and
(d) of this section is issued an airline transport pilot certificate
with the limitation, ``Holder does not meet the pilot in command
aeronautical experience requirements of ICAO,'' as prescribed under
Article 39 of the Convention on International Civil Aviation.
    (f) An applicant is entitled to an airline transport pilot
certificate without the ICAO limitation specified under paragraph (e)
of this section when the applicant presents satisfactory evidence of
having met the ICAO requirements under paragraph (e) of this section
and otherwise meets the aeronautical experience requirements of this
section.

0
21. In Sec.  61.161:
0
a. Effective July 27, 2018, amend paragraph (b) by removing the words
``flight simulator'' and adding in their place the words ``full flight
simulator''; and
0
b. Effective November 26, 2018, add paragraphs (c), (d), and (e).
    The additions read as follows:

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

* * * * *
    (c) Flight time logged under Sec.  61.159(c) may be counted toward
the 1,200 hours of total time as a pilot required by paragraph (a) of
this section and the flight time requirements of paragraphs (a)(1),
(2), and (4) of this section, except for the specific helicopter flight
time requirements.
    (d) An applicant who credits time under paragraph (c) of this
section is issued an airline transport pilot certificate with the
limitation, ``Holder does not meet the pilot in command aeronautical
experience requirements of ICAO,'' as prescribed under Article 39 of
the Convention on International Civil Aviation.
    (e) An applicant is entitled to an airline transport pilot
certificate without the ICAO limitation specified under paragraph (d)
of this section when the applicant presents satisfactory evidence of
having met the ICAO requirements under paragraph (d) of this section
and otherwise meets the aeronautical experience requirements of this
section.

0
22. In Sec.  61.195, revise paragraphs (b), (c), and (e) and add
paragraph (l) to read as follows:

Sec.  61.195   Flight instructor limitations and qualifications.

* * * * *
    (b) Aircraft ratings. Except as provided in paragraph (c) of this
section, a flight instructor may not conduct flight training in any
aircraft unless the flight instructor:
    (1) Holds a flight instructor certificate with the applicable
category and class rating;
    (2) Holds a pilot certificate with the applicable category and
class rating; and
    (3) Meets the requirements of paragraph (e) of this section, if
applicable.
    (c) Instrument rating. A flight instructor may conduct instrument
training for the issuance of an instrument rating, a type rating not
limited to VFR, or the instrument training required for commercial
pilot and airline transport pilot certificates if the following
requirements are met:
    (1) Except as provided in paragraph (c)(2) of this section, the
flight instructor must hold an instrument rating appropriate to the
aircraft used for the instrument training on his or her flight
instructor certificate, and--
    (i) Meet the requirements of paragraph (b) of this section; or
    (ii) Hold a commercial pilot certificate or airline transport pilot
certificate with the appropriate category and class ratings for the
aircraft in which the instrument training is conducted provided the
pilot receiving instrument training holds a pilot certificate with
category and class ratings appropriate to the aircraft in which the
instrument training is being conducted.
    (2) If the flight instructor is conducting the instrument training
in a multiengine airplane, the flight instructor must hold an
instrument rating appropriate to the aircraft used for the instrument
training on his or her flight instructor certificate and meet the
requirements of paragraph (b) of this section.
* * * * *
    (e) Training in an aircraft that requires a type rating. A flight
instructor may not give flight instruction, including instrument
training, in an aircraft that requires the pilot in command to hold a
type rating unless the flight instructor holds a type rating for that
aircraft on his or her pilot certificate.
* * * * *
    (l) Training on control and maneuvering an aircraft solely by
reference to the instruments. A flight instructor may conduct flight
training on control and maneuvering an airplane solely by reference to
the flight instruments, provided the flight instructor--
    (1) Holds a flight instructor certificate with the applicable
category and class rating; or
    (2) Holds an instrument rating appropriate to the aircraft used for
the training on his or her flight instructor certificate, and holds a
commercial pilot certificate or airline transport pilot certificate
with the appropriate category and class ratings for the aircraft in
which the training is conducted provided the pilot receiving the
training holds a pilot certificate with category and class ratings
appropriate to the aircraft in which the training is being conducted.

0
23. Effective August 27, 2018, in Sec.  61.197, revise paragraphs
(a)(2)(iv) and (c) to read as follows:

Sec.  61.197   Renewal requirements for flight instructor
certification.

    (a) * * *
    (2) * * *
    (iv) A record showing that, within the preceding 24 months from the
month of application, the flight instructor passed an official U.S.
Armed Forces military instructor pilot or pilot examiner proficiency
check in an aircraft for which the military instructor already holds a
rating or in an aircraft for an additional rating.
* * * * *
    (c) The practical test required by paragraph (a)(1) of this section
may be accomplished in a full flight simulator or flight training
device if the test is accomplished pursuant to an approved course
conducted by a training center certificated under part 142 of this
chapter.

0
24. Effective August 27, 2018, in Sec.  61.199, add paragraphs (a)(3),
(c) and (d) to read as follows:

Sec.  61.199   Reinstatement requirements of an expired flight
instructor certificate.

    (a) * * *
    (3) For military instructor pilots, provide a record showing that,
within

the preceding 6 calendar months from the date of application for
reinstatement, the person--
    (i) Passed a U.S. Armed Forces instructor pilot or pilot examiner
proficiency check; or
    (ii) Completed a U.S. Armed Forces' instructor pilot or pilot
examiner training course and received an additional aircraft rating
qualification as a military instructor pilot or pilot examiner that is
appropriate to the flight instructor rating sought.
* * * * *
    (c) Certain military instructors and examiners. The holder of an
expired flight instructor certificate issued prior to October 20, 2009,
may apply for reinstatement of that certificate by presenting the
following:
    (1) A record showing that, since the date the flight instructor
certificate was issued, the person passed a U.S. Armed Forces
instructor pilot or pilot examiner proficiency check for an additional
military rating; and
    (2) A knowledge test report that shows the person passed a
knowledge test on the aeronautical knowledge areas listed under Sec.
61.185(a) appropriate to the flight instructor rating sought and the
knowledge test was passed within the preceding 24 calendar months prior
to the month of application.
    (d) Expiration date. The requirements of paragraph (c) of this
section will expire on August 26, 2019.

0
25. Effective August 27, 2018, add Sec.  61.412 to read as follows:

Sec.  61.412   Do I need additional training to provide instruction on
control and maneuvering an airplane solely by reference to the
instruments in a light-sport aircraft based on VH?

    To provide flight training under Sec.  61.93(e)(12) on control and
maneuvering an airplane solely by reference to the flight instruments
for the purpose of issuing a solo cross-country endorsement under Sec.
61.93(c)(1) to a student pilot seeking a sport pilot certificate, a
flight instructor with a sport pilot rating must:
    (a) Hold an endorsement required by Sec.  61.327(b);
    (b) Receive and log a minimum of 1 hour of ground training and 3
hours of flight training from an authorized instructor in an airplane
with a VH greater than 87 knots CAS or in a full flight
simulator, flight training device, or aviation training device that
replicates an airplane with a VH greater than 87 knots CAS;
and
    (c) Receive a one-time endorsement in his or her logbook from an
instructor authorized under subpart H of this part who certifies that
the person is proficient in providing training on control and
maneuvering solely by reference to the flight instruments in an
airplane with a VH greater than 87 knots CAS. This flight
training must include straight and level flight, turns, descents,
climbs, use of radio navigation aids, and ATC directives.

0
26. Effective August 27, 2018, in Sec.  61.415, redesignate paragraphs
(h) and (i) as paragraphs (i) and (j) and add paragraph (h) to read as
follows:

Sec.  61.415   What are the limits of a flight instructor certificate
with a sport pilot rating?

* * * * *
    (h) You may not provide training on the control and maneuvering of
an aircraft solely by reference to the instruments in a light sport
airplane with a Vh greater than 87 knots CAS unless you meet
the requirements in Sec.  61.412.
* * * * *

PART 63--CERTIFICATION: FLIGHT CREWMEMBERS OTHER THAN PILOTS

0
27. The authority citation for part 63 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 44701-44703, 44707,
44709-44711, 45102-45103, 45301-45302.

0
28. Effective December 24, 2018, revise Sec.  63.3 to read as follows:

Sec.  63.3   Certificates and ratings required.

    (a) Except as provided in paragraph (c) of this section, no person
may act as a flight engineer of a civil aircraft of U.S. registry
unless that person has in his or her physical possession or readily
accessible in the aircraft:
    (1) A current flight engineer certificate with appropriate ratings
issued to that person under this part;
    (2) A document conveying temporary authority to exercise
certificate privileges issued by the Airman Certification Branch under
Sec.  63.16(f); or
    (3) When engaged in a flight operation within the United States for
a part 119 certificate holder authorized to conduct operations under
part 121 of this chapter, a temporary document provided by that
certificate holder under an approved certificate verification plan.
    (b) A person may act as a flight engineer of an aircraft only if
that person holds a current second-class (or higher) medical
certificate issued to that person under part 67 of this chapter, or
other documentation acceptable to the FAA, that is in that person's
physical possession or readily accessible in the aircraft.
    (c) When the aircraft is operated within a foreign country, a
current flight engineer certificate issued by the country in which the
aircraft is operated, with evidence of current medical qualification
for that certificate, may be used. Also, in the case of a flight
engineer certificate issued under Sec.  63.42, evidence of current
medical qualification accepted for the issue of that certificate is
used in place of a medical certificate.
    (d) No person may act as a flight navigator of a civil aircraft of
U.S. registry unless that person has in his or her physical possession
a current flight navigator certificate issued to him or her under this
part and a second-class (or higher) medical certificate issued to him
or her under part 67 of this chapter within the preceding 12 months.
However, when the aircraft is operated within a foreign country, a
current flight navigator certificate issued by the country in which the
aircraft is operated, with evidence of current medical qualification
for that certificate, may be used.
    (e) Each person who holds a flight engineer or flight navigator
certificate, medical certificate, or temporary document in accordance
with paragraph (a)(3) of this section shall present it for inspection
upon the request of the Administrator or an authorized representative
of the National Transportation Safety Board, or of any Federal, State,
or local law enforcement officer.

0
29. Effective December 24, 2018, revise Sec.  63.16 to read as follows:

Sec.  63.16   Change of name; replacement of lost or destroyed
certificate.

    (a) An application for a change of name on a certificate issued
under this part must be accompanied by the applicant's current
certificate and the marriage license, court order, or other document
verifying the change. The documents are returned to the applicant after
inspection.
    (b) A request for a replacement of a lost or destroyed airman
certificate issued under this part must be made:
    (1) By letter to the Department of Transportation, Federal Aviation
Administration, Airman Certification Branch, Post Office Box 25082,
Oklahoma City, OK 73125 and must be accompanied by a check or money
order for the appropriate fee payable to the FAA; or
    (2) In any other form and manner approved by the Administrator
including a request to Airman Services at http://www.faa.gov, and must
be accompanied by acceptable form of payment for the appropriate fee.

    (c) A request for the replacement of a lost or destroyed medical
certificate must be made:
    (1) By letter to the Department of Transportation, FAA, Aerospace
Medical Certification Division, P.O. Box 26200, Oklahoma City, OK
73125, and must be accompanied by a check or money order for the
appropriate fee payable to the FAA; or
    (2) In any other manner and form approved by the Administrator and
must be accompanied by acceptable form of payment for the appropriate
fee.
    (d) A request for the replacement of a lost or destroyed knowledge
test report must be made:
    (1) By letter to the Department of Transportation, FAA, Airmen
Certification Branch, P.O. Box 25082, Oklahoma City, OK 73125, and must
be accompanied by a check or money order for the appropriate fee
payable to the FAA; or
    (2) In any other manner and form approved by the Administrator and
must be accompanied by acceptable form of payment for the appropriate
fee.
    (e) The letter requesting replacement of a lost or destroyed airman
certificate, medical certificate, or knowledge test report must state:
    (1) The name of the person;
    (2) The permanent mailing address (including ZIP code), or if the
permanent mailing address includes a post office box number, then the
person's current residential address;
    (3) The certificate holder's date and place of birth; and
    (4) Any information regarding the--
    (i) Grade, number, and date of issuance of the airman certificate
and ratings, if appropriate;
    (ii) Class of medical certificate, the place and date of the
medical exam, name of the Airman Medical Examiner (AME), and the
circumstances concerning the loss of the original medical certificate,
as appropriate; and
    (iii) Date the knowledge test was taken, if appropriate.
    (f) A person who has lost an airman certificate, medical
certificate, or knowledge test report may obtain in a form or manner
approved by the Administrator, a document conveying temporary authority
to exercise certificate privileges from the FAA Aeromedical
Certification Branch or the Airman Certification Branch, as
appropriate, and the--
    (1) Document may be carried as an airman certificate, medical
certificate, or knowledge test report, as appropriate, for a period not
to exceed 60 days pending the person's receiving a duplicate under
paragraph (b), (c), or (d) of this section, unless the person has been
notified that the certificate has been suspended or revoked.
    (2) Request for such a document must include the date on which a
duplicate certificate or knowledge test report was previously
requested.

PART 65--CERTIFICATION: AIRMEN OTHER THAN FLIGHT CREWMEMBERS

0
30. The authority citation for part 65 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 44701-44703, 44707,
44709-44711, 45102-45103, 45301-45302.

0
31. Revise Sec.  65.59 to read as follows:

Sec.  65.59   Skill requirements.

    An applicant for an aircraft dispatcher certificate must pass a
practical test given by the Administrator, with respect to any one type
of large aircraft used in air carrier operations. To pass the practical
test for an aircraft dispatcher certificate, the applicant must
demonstrate skill in applying the areas of knowledge and topics
specified in appendix A of this part to preflight and all phases of
flight, including abnormal and emergency procedures.

0
32. Revise the introductory text of appendix A to read as follows:

Appendix A to Part 65--Aircraft Dispatcher Courses

Overview

    This appendix sets forth the areas of knowledge necessary to
perform dispatcher functions. The items listed below indicate the
minimum set of topics that must be covered in a training course for
aircraft dispatcher certification. The order of coverage is at the
discretion of the approved school.
* * * * *

PART 91--GENERAL OPERATING AND FLIGHT RULES

0
33. The authority citation for part 91 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 1155, 40101, 40103, 40105,
40113, 40120, 44101, 44111, 44701, 44704, 44709, 44711, 44712,
44715, 44716, 44717, 44722, 46306, 46315, 46316, 46504, 46506-46507,
47122, 47508, 47528-47531, 47534, Pub. L. 114-190, 130 Stat. 615 (49
U.S.C. 44703 note); articles 12 and 29 of the Convention on
International Civil Aviation (61 Stat. 1180), (126 Stat. 11).

0
34. Effective August 27, 2018, in Sec.  91.109, revise paragraph (c)(1)
to read as follows:

Sec.  91.109   Flight instruction; Simulated instrument flight and
certain flight tests.

* * * * *
    (c) * * *
    (1) The other control seat is occupied by a safety pilot who
possesses at least:
    (i) A private pilot certificate with category and class ratings
appropriate to the aircraft being flown; or
    (ii) For purposes of providing training for a solo cross-country
endorsement under Sec.  61.93 of this chapter, a flight instructor
certificate with an appropriate sport pilot rating and meets the
requirements of Sec.  61.412 of this chapter.
* * * * *

0
35. Effective December 24, 2018, in Sec.  91.313, revise paragraphs
(b), (c), and (d)(3) and (4) and add paragraphs (d)(5) and (h) to read
as follows:

Sec.  91.313   Restricted category civil aircraft: Operating
limitations.

* * * * *
    (b) For the purpose of paragraph (a) of this section, the following
operations are considered necessary to accomplish the work activity
directly associated with a special purpose operation:
    (1) Flights conducted for flight crewmember training in a special
purpose operation for which the aircraft is certificated.
    (2) Flights conducted to satisfy proficiency check and recent
flight experience requirements under part 61 of this chapter provided
the flight crewmember holds the appropriate category, class, and type
ratings and is employed by the operator to perform the appropriate
special purpose operation.
    (3) Flights conducted to relocate the aircraft for delivery,
repositioning, or maintenance.
    (c) No person may operate a restricted category civil aircraft
carrying persons or property for compensation or hire. For the purposes
of this paragraph (c), a special purpose operation involving the
carriage of persons or material necessary to accomplish that operation,
such as crop dusting, seeding, spraying, and banner towing (including
the carrying of required persons or material to the location of that
operation), an operation for the purpose of providing flight crewmember
training in a special purpose operation, and an operation conducted
under the authority provided in paragraph (h) of this section are not
considered to be the carriage of persons or property for compensation
or hire.
    (d) * * *
    (3) Performs an essential function in connection with a special
purpose operation for which the aircraft is certificated;
    (4) Is necessary to accomplish the work activity directly
associated with that special purpose; or

    (5) Is necessary to accomplish an operation under paragraph (h) of
this section.
* * * * *
    (h)(1) An operator may apply for deviation authority from the
provisions of paragraph (a) of this section to conduct operations for
the following purposes:
    (i) Flight training and the practical test for issuance of a type
rating provided--
    (A) The pilot being trained and tested holds at least a commercial
pilot certificate with the appropriate category and class ratings for
the aircraft type;
    (B) The pilot receiving flight training is employed by the operator
to perform a special purpose operation; and
    (C) The flight training is conducted by the operator who employs
the pilot to perform a special purpose operation.
    (ii) Flights to designate an examiner or qualify an FAA inspector
in the aircraft type and flights necessary to provide continuing
oversight and evaluation of an examiner.
    (2) The FAA will issue this deviation authority as a letter of
deviation authority.
    (3) The FAA may cancel or amend a letter of deviation authority at
any time.
    (4) An applicant must submit a request for deviation authority in a
form and manner acceptable to the Administrator at least 60 days before
the date of intended operations. A request for deviation authority must
contain a complete description of the proposed operation and
justification that establishes a level of safety equivalent to that
provided under the regulations for the deviation requested.

0
36. Revise Sec.  91.531 to read as follows:

Sec.  91.531   Second in command requirements.

    (a) Except as provided in paragraph (b) of this section, no person
may operate the following airplanes without a pilot designated as
second in command:
    (1) Any airplane that is type certificated for more than one
required pilot.
    (2) Any large airplane.
    (3) Any commuter category airplane.
    (b) A person may operate the following airplanes without a pilot
designated as second in command:
    (1) Any airplane certificated for operation with one pilot.
    (2) A large airplane or turbojet-powered multiengine airplane that
holds a special airworthiness certificate, if:
    (i) The airplane was originally designed with only one pilot
station; or
    (ii) The airplane was originally designed with more than one pilot
station, but single pilot operations were permitted by the airplane
flight manual or were otherwise permitted by a branch of the United
States Armed Forces or the armed forces of a foreign contracting State
to the Convention on International Civil Aviation.
    (c) No person may designate a pilot to serve as second in command,
nor may any pilot serve as second in command, of an airplane required
under this section to have two pilots unless that pilot meets the
qualifications for second in command prescribed in Sec.  61.55 of this
chapter.

0
37. Effective December 24, 2018, in Sec.  91.1015, add paragraph (h) to
read as follows:

Sec.  91.1015   Management specifications.

* * * * *
    (h) A program manager may obtain approval to provide a temporary
document verifying a flightcrew member's airman certificate and medical
certificate privileges under an approved certificate verification plan
set forth in the program manager's management specifications. A
document provided by the program manager may be carried as an airman
certificate or medical certificate on flights within the United States
for up to 72 hours.

PART 121--OPERATING REQUIREMENTS: DOMESTIC, FLAG, AND SUPPLEMENTAL
OPERATIONS

0
38. The authority citation for part 121 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40103, 40113, 40119,
41706, 42301 preceding note added by Pub. L. 112-95, sec. 412, 126
Stat. 89, 44101, 44701-44702, 44705, 44709-44711, 44713, 44716-
44717, 44722, 44729, 44732; 46105; Pub. L. 111-216, 124 Stat. 2348
(49 U.S.C. 44701 note); Pub. L. 112-95, 126 Stat. 62 (49 U.S.C.
44732 note).

0
39. Effective December 24, 2018, in Sec.  121.383, revise paragraphs
(a)(2) and (b) and add paragraph (c) to read as follows:

Sec.  121.383   Airman: Limitations on use of services.

    (a) * * *
    (2) Has in his or her possession while engaged in operations under
this part--
    (i) Any required appropriate current airman and medical
certificates; or
    (ii) A temporary document issued in accordance with paragraph (c)
of this section; and
* * * * *
    (b) Each airman covered by paragraph (a)(2) of this section shall
present his or her certificates or temporary document for inspection
upon request of the Administrator.
    (c) A certificate holder may obtain approval to provide a temporary
document verifying a flightcrew member's airman certificate and medical
certificate privileges under an approved certificate verification plan
set forth in the certificate holder's operations specifications. A
document provided by the certificate holder may be carried as an airman
certificate or medical certificate on flights within the United States
for up to 72 hours.
* * * * *

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON DEMAND OPERATIONS
AND RULES GOVERNING PERSONS ON BOARD SUCH AIRCRAFT

0
40. The authority citation for part 135 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 41706, 44701-44702,
44705, 44709, 44711-44713, 44715-44717, 44722, 44730, 45101-45105;
Pub. L. 112-95, 126 Stat. 58 (49 U.S.C. 44730).

0
41. Effective December 24, 2018, revise Sec.  135.95 to read as
follows:

Sec.  135.95   Airmen: Limitations on use of services.

    (a) No certificate holder may use the services of any person as an
airman unless the person performing those services--
    (1) Holds an appropriate and current airman certificate; and
    (2) Is qualified, under this chapter, for the operation for which
the person is to be used.
    (b) A certificate holder may obtain approval to provide a temporary
document verifying a flightcrew member's airman certificate and medical
certificate privileges under an approved certificate verification plan
set forth in the certificate holder's operations specifications. A
document provided by the certificate holder may be carried as an airman
certificate or medical certificate on flights within the United States
for up to 72 hours.

0
42. Effective November 26, 2018, in Sec.  135.99, add paragraphs (c)
and (d) to read as follows:

Sec.  135.99   Composition of flight crew.

* * * * *
    (c) Except as provided in paragraph (d) of this section, a
certificate holder authorized to conduct operations under instrument
flight rules may receive authorization from the Administrator through
its operations specifications to establish a second-in-command
professional development program. As part of that program, a pilot
employed by the certificate holder may log time as

second in command in operations conducted under this part and part 91
of this chapter that do not require a second pilot by type
certification of the aircraft or the regulation under which the flight
is being conducted, provided the flight operation is conducted in
accordance with the certificate holder's operations specifications for
second-in-command professional development program; and--
    (1) The certificate holder:
    (i) Maintains records for each assigned second in command
consistent with the requirements in Sec.  135.63;
    (ii) Provides a copy of the records required by Sec.
135.63(a)(4)(vi) and (x) to the assigned second in command upon request
and within a reasonable time; and
    (iii) Establishes and maintains a data collection and analysis
process that will enable the certificate holder and the FAA to
determine whether the second-in-command professional development
program is accomplishing its objectives.
    (2) The aircraft is a multiengine airplane or a single-engine
turbine-powered airplane. The aircraft must have an independent set of
controls for a second pilot flightcrew member, which may not include a
throwover control wheel. The aircraft must also have the following
equipment and independent instrumentation for a second pilot:
    (i) An airspeed indicator;
    (ii) Sensitive altimeter adjustable for barometric pressure;
    (iii) Gyroscopic bank and pitch indicator;
    (iv) Gyroscopic rate-of-turn indicator combined with an integral
slip-skid indicator;
    (v) Gyroscopic direction indicator;
    (vi) For IFR operations, a vertical speed indicator;
    (vii) For IFR operations, course guidance for en route navigation
and instrument approaches; and
    (viii) A microphone, transmit switch, and headphone or speaker.
    (3) The pilot assigned to serve as second in command satisfies the
following requirements:
    (i) The second in command qualifications in Sec.  135.245;
    (ii) The flight time and duty period limitations and rest
requirements in subpart F of this part;
    (iii) The crewmember testing requirements for second in command in
subpart G of this part; and
    (iv) The crewmember training requirements for second in command in
subpart H of this part.
    (4) The pilot assigned to serve as pilot in command satisfies the
following requirements:
    (i) Has been fully qualified to serve as a pilot in command for the
certificate holder for at least the previous 6 calendar months; and
    (ii) Has completed mentoring training, including techniques for
reinforcing the highest standards of technical performance, airmanship
and professionalism within the preceding 36 calendar months.
    (d) The following certificate holders are not eligible to receive
authorization for a second-in-command professional development program
under paragraph (c) of this section:
    (1) A certificate holder that uses only one pilot in its
operations; and
    (2) A certificate holder that has been approved to deviate from the
requirements in Sec.  135.21(a), Sec.  135.341(a), or Sec.  119.69(a)
of this chapter.

0
43. In Sec.  135.245, revise paragraph (a) and add paragraphs (c) and
(d) to read as follows.

Sec.  135.245   Second in command qualifications.

    (a) Except as provided in paragraph (b) of this section, no
certificate holder may use any person, nor may any person serve, as
second in command of an aircraft unless that person holds at least a
commercial pilot certificate with appropriate category and class
ratings and an instrument rating.
* * * * *
    (c) No certificate holder may use any person, nor may any person
serve, as second in command under IFR unless that person meets the
following instrument experience requirements:
    (1) Use of an airplane or helicopter for maintaining instrument
experience. Within the 6 calendar months preceding the month of the
flight, that person performed and logged at least the following tasks
and iterations in-flight in an airplane or helicopter, as appropriate,
in actual weather conditions, or under simulated instrument conditions
using a view-limiting device:
    (i) Six instrument approaches;
    (ii) Holding procedures and tasks; and
    (iii) Intercepting and tracking courses through the use of
navigational electronic systems.
    (2) Use of an FSTD for maintaining instrument experience. A person
may accomplish the requirements in paragraph (c)(1) of this section in
an approved FSTD, or a combination of aircraft and FSTD, provided:
    (i) The FSTD represents the category of aircraft for the instrument
rating privileges to be maintained;
    (ii) The person performs the tasks and iterations in simulated
instrument conditions; and
    (iii) A flight instructor qualified under Sec.  135.338 or a check
pilot qualified under Sec.  135.337 observes the tasks and iterations
and signs the person's logbook or training record to verify the time
and content of the session.
    (d) A second in command who has failed to meet the instrument
experience requirements of paragraph (c) of this section for more than
six calendar months must reestablish instrument recency under the
supervision of a flight instructor qualified under Sec.  135.338 or a
check pilot qualified under Sec.  135.337. To reestablish instrument
recency, a second in command must complete at least the following areas
of operation required for the instrument rating practical test in an
aircraft or FSTD that represents the category of aircraft for the
instrument experience requirements to be reestablished:
    (1) Air traffic control clearances and procedures;
    (2) Flight by reference to instruments;
    (3) Navigation systems;
    (4) Instrument approach procedures;
    (5) Emergency operations; and
    (6) Postflight procedures.

PART 141--PILOT SCHOOLS

0
44. The authority citation for part 141 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 44701-44703, 44707,
44709, 44711, 45102-45103, 45301-45302.

0
45. Effective November 26, 2018, in Sec.  141.5, revise paragraph (d)
to read as follows:

Sec.  141.5   Requirements for a pilot school certificate.

* * * * *
    (d) Has established a pass rate of 80 percent or higher on the
first attempt for all:
    (1) Knowledge tests leading to a certificate or rating;
    (2) Practical tests leading to a certificate or rating;
    (3) End-of-course tests for an approved training course specified
in appendix K of this part; and
    (4) End-of-course tests for special curricula courses approved
under Sec.  141.57.
* * * * *

0
46. Effective August 27, 2018, in appendix D to part 141, section 4:
0
a. Revise paragraphs (b)(1)(ii) and (b)(2)(ii); and
0
b. Amend paragraphs (b)(3)(i) and (b)(4)(i) by removing the words
``flight simulator'' and adding in their place the words ``full flight
simulator''.

    The revisions read as follows:

Appendix D to Part 141--Commercial Pilot Certification Course

* * * * *
    4. * * *
    (b) * * *
    (1) * * *
    (ii) Ten hours of training in a complex airplane, a turbine-
powered airplane, or a technically advanced airplane that meets the
requirements of Sec.  61.129(j) of this chapter, or any combination
thereof. The airplane must be appropriate to land or sea for the
rating sought;
* * * * *
    (2) * * *
    (ii) 10 hours of training in a multiengine complex or turbine-
powered airplane, or any combination thereof;
* * * * *

Appendix I to Part 141--[Amended]

0
47. In appendix I to part 141, section 4, redesignate the second
paragraph (k)(2)(iv) as paragraph (k)(2)(v).

    Issued in Washington, DC, under the authority of 49 U.S.C.
106(f), 44701(a)(5), and 44703(a), on June 6, 2018.
Daniel K. Elwell,
Acting Administrator.
[FR Doc. 2018-12800 Filed 6-26-18; 8:45 am]
 BILLING CODE 4910-13-P