83_FR_28647 83 FR 28528 - Updates to Rulemaking and Waiver Procedures and Expansion of the Equivalent Level of Safety Option

83 FR 28528 - Updates to Rulemaking and Waiver Procedures and Expansion of the Equivalent Level of Safety Option

DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration

Federal Register Volume 83, Issue 119 (June 20, 2018)

Page Range28528-28536
FR Document2018-13177

This action streamlines and improves commercial space transportation regulations' general rulemaking and petition procedures to better reflect current practice; reorganizes the regulations for clarity and flow; and allows petitioners to file their petitions to the FAA's Office of Commercial Space Transportation electronically. Further, it expands the option to satisfy commercial space transportation requirements by demonstrating an equivalent level of safety to the regulatory requirements. These changes are necessary to ensure that the regulations regarding petitions are clear and current, and that the commercial space launch industry is more easily able to request approvals of safe alternative means of regulatory compliance.

Federal Register, Volume 83 Issue 119 (Wednesday, June 20, 2018)
[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Rules and Regulations]
[Pages 28528-28536]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13177]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 11, 404, 405, 420, 431, 435, 437, 460

[Docket No.: FAA-2016-6761; Amdt. Nos. 11-62, 404-6, 405-6, 420-8, 431-
6, 435-4, 437-2, 460-2]
RIN 2120-AK76


Updates to Rulemaking and Waiver Procedures and Expansion of the 
Equivalent Level of Safety Option

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action streamlines and improves commercial space 
transportation regulations' general rulemaking and petition procedures 
to better reflect current practice; reorganizes the regulations for 
clarity and flow; and allows petitioners to file their petitions to the 
FAA's Office of Commercial Space Transportation electronically. 
Further, it expands the option to satisfy commercial space 
transportation requirements by demonstrating an equivalent level of

[[Page 28529]]

safety to the regulatory requirements. These changes are necessary to 
ensure that the regulations regarding petitions are clear and current, 
and that the commercial space launch industry is more easily able to 
request approvals of safe alternative means of regulatory compliance.

DATES: Effective August 20, 2018.

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

FOR FURTHER INFORMATION CONTACT: For questions concerning this action, 
contact Joshua Easterson, AST-300, Office of Commercial Space 
Transportation, Federal Aviation Administration, 800 Independence 
Avenue SW, Washington, DC 20591; telephone (202) 267-5150; email 
[email protected].

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking

    The Commercial Space Launch Act of 1984, as amended and re-codified 
at 51 U.S.C. 50901-50923 (the Act), authorizes the Department of 
Transportation and thus the FAA, through delegations, to oversee, 
license, and regulate commercial launch and reentry activities, and the 
operation of launch and reentry sites as carried out by U.S. citizens 
or within the United States. 51 U.S.C. 50904, 50905. The Act directs 
the FAA to exercise this responsibility consistent with public health 
and safety, safety of property, and the national security and foreign 
policy interests of the United States. 51 U.S.C. 50905. The Act directs 
the FAA to regulate only to the extent necessary to protect the public 
health and safety, safety of property, and national security and 
foreign policy interests of the United States. 51 U.S.C. 50901(a)(7). 
The FAA is also responsible for encouraging, facilitating, and 
promoting commercial space launches by the private sector. 51 U.S.C. 
50903.

I. Overview of Final Rule

    The FAA is adopting this final rule to: Streamline the general 
rulemaking and petition procedures in part 404; clarify how the general 
rulemaking and petition procedures in part 11 relate to those in part 
404, and ensure the procedures reflect current practice; reorganize 
part 404 to make clear the distinct requirements for petitions for 
waivers and petitions for rulemaking; amend the title of part 405 to 
better reflect the content; and expand the equivalent level of safety 
option so that it applies more broadly throughout 14 CFR chapter III. 
In addition, this final rule is adopting minor changes to part 11.
    This final rule reorganizes part 404 to clarify and streamline the 
requirements. The reorganization moves the requirements for petitions 
for waivers and petitions for rulemaking into separate sections but 
does not substantially change the requirements. Instead, some 
requirements, as discussed below, were revised for clarity, to remove 
duplicate information and to ensure current practice is reflected. The 
reorganization of part 404 as adopted is shown in the below table.

[[Page 28530]]

[GRAPHIC] [TIFF OMITTED] TR20JN18.053

    In addition to reorganizing part 404, this final rule:
     Adds a cross reference in Sec.  11.15 to part 404's 
commercial space transportation waivers;
     Includes in Sec.  11.63 the correct internet link where 
petitioners can find additional information on filing their petitions;
     Amends Sec.  404.1 to state that the scope of part 404 
``establishes procedures for issuing regulations and for filing a 
petition for waiver or petition for rulemaking to the Associate 
Administrator for Commercial Space Transportation;''
     Revises Sec.  404.3 such that petitioners need only file 
one copy of their petition to the Office of Commercial Space 
Transportation (AST) by mailing it to AST's physical address or 
emailing it to the AST email address provided in Sec.  404.3;
     Removes the requirement in Sec.  404.3 that a petition for 
rulemaking contain a summary that the FAA may cause to be published in 
the Federal Register;
     Amends Sec.  404.5 to require that the petition must 
reference the specific section or sections of 14 CFR chapter III from 
which relief is sought;
     Amends Sec.  404.5 to require that the petition must state 
the reasons why granting the request for relief is in the public 
interest and will not jeopardize the public health and safety, safety 
of property, and national security and foreign policy interests of the 
United States;
     Amends Sec.  404.7 to state that under 51 U.S.C. 
50905(b)(3), the FAA is not authorized to grant a waiver that would 
permit the launch or reentry of a launch vehicle or reentry vehicle 
without a license or permit if a human being would be on board;
     Removes information in Sec. Sec.  404.9, 404.11, and 
404.13 regarding filing petitions for rulemaking, the FAA's action on 
petitions for rulemaking, and the agency's general rulemaking process 
that duplicates part 11 and, instead, cross references relevant 
sections of part 11 in Sec. Sec.  404.9, 404.11, and 404.13, 
respectively;
     Changes the current title of part 405, ``Investigations 
and Enforcement,'' to ``Compliance and Enforcement,'' to better reflect 
the content;
     Expands the equivalent level of safety option to each 
requirement of parts 420 (License To Operate A Launch Site), 431 
(Launch And Reentry Of A Reusable Launch Vehicle), 435 (Reentry Of A 
Reentry Vehicle Other Than A Reusable Launch Vehicle), and 437 
(Experimental Permits); and,
     Expands the equivalent level of safety option to Sec.  
460.5(d) as a means of compliance with pilot qualification 
requirements.
    This final rule will result in nonquantified benefits for the 
commercial space transportation industry, the interested public, and 
the government by streamlining and improving commercial space 
transportation regulations' general rulemaking and petition procedures 
and allowing petitioners to file their petitions to the FAA's Office of 
Commercial Space Transportation electronically. In addition, this rule

[[Page 28531]]

expands the option to satisfy commercial space transportation 
requirements by demonstrating an equivalent level of safety, thereby 
providing more choice to operators and reducing the number of waivers 
that must be prepared by the industry and processed by the government.

II. Background

    On June 1, 2016, the FAA published a notice of proposed rulemaking 
(NPRM) (81 FR 34919)[thinsp]proposing to amend 14 CFR chapter III to 
modify and streamline the FAA's commercial space transportation 
regulations regarding general rulemaking and petition procedures; 
expand the equivalent level of safety option to provide the commercial 
space transportation industry with alternative means of satisfying 
chapter III requirements; and, make a minor change to revise a part 
title.
    The Office of Commercial Space Transportation (AST) was established 
under the Commercial Space Launch Act of 1984 (the Act) as part of the 
Department of Transportation. In 1988, pursuant to the Act, rulemaking 
and petition procedures specific to commercial space operations were 
codified in 14 CFR, chapter III, part 404. In November 1995, AST was 
transferred to the FAA, becoming the agency's only space-related line 
of business. Whereas AST's rulemaking and petition requirements reside 
in part 404, the FAA's rulemaking and petition procedures are codified 
in part 11. The two sets of procedures are mostly duplicative and at 
times confusing as to applicability. Therefore, the FAA issued the June 
2016 NPRM to propose to reorganize, streamline, and modify the part 404 
requirements. This final rule adopts the proposed changes to part 404 
without change.
    An equivalent level of safety provision allows an applicant to 
propose an alternative method to meet the safety intent of a current 
regulatory requirement, by providing a clear and convincing 
demonstration through technical rationale that the proposed alternative 
approach provides a level of safety equivalent to the requirement it 
would replace. An equivalent level of safety means an approximately 
equal level of safety as determined by qualitative or quantitative 
means. Prior to this rulemaking, the option to satisfy a commercial 
space transportation regulation by demonstrating an equivalent level of 
safety was limited to the launch license provisions for expendable 
launch vehicles in parts 415 and 417, and to some specific sections of 
other parts in chapter III including sections of the launch site 
location review and explosive siting requirements to obtain a license 
to operate a launch site in part 420, collision avoidance distances for 
experimental permits in part 437, the requirement that a remote 
operator possess an FAA pilot certificate with an instrument rating in 
the Human Space Flight Requirements in part 460, and environmental 
controls and life support system requirements also in part 460. This 
restricted the FAA's flexibility in approving launch and reentry 
related activities, where the operator can convincingly demonstrate in 
an application that an alternative approach to the requirements of 
chapter III provides an equivalent level of safety.
    While applicants are still able to petition for waiver of any 
regulatory requirement, the June 2016 NPRM proposed to expand the 
equivalent level of safety option so that it applies more broadly to 
all requirements in parts 420, 431, 435, and 437 in chapter III. The 
waiver process can sometimes be more time-consuming than pursuing an 
equivalent level of safety determination. The NPRM also proposed 
clarifying that the equivalent level of safety provision for FAA pilot 
certificates applicable to remote operators in part 460 should also be 
applicable to all pilots under part 460.
    Expanding the equivalent level of safety option is expected to 
reduce paperwork burdens without negatively impacting safety. To 
utilize the option applicants must demonstrate that they are achieving 
a level of safety equivalent to any safety parameters specified in the 
regulations. The FAA will evaluate every request for an alternative 
means of regulatory compliance under the equivalent level of safety 
provisions to ensure that the safety of the public, property, or any 
national security or foreign policy interest of the United States is 
maintained to be consistent with the requirements in chapter III of 
Title 14 of the Code of Federal Regulations.
    This final rule adopts the proposed expansion of the equivalent 
level of safety option without change. In addition to previously 
available opportunities to pursue an equivalent level of safety, 
applicants will now have the option to pursue an equivalent level of 
safety option for each requirement of parts 420 (License To Operate A 
Launch Site), 431 (Launch And Reentry Of A Reusable Launch Vehicle), 
435 (Reentry Of A Reentry Vehicle Other Than A Reusable Launch 
Vehicle), and 437 (Experimental Permits). The equivalent level of 
safety determination by the FAA will be included as part of any license 
or permit issued applying this provision.
    The title of part 405 was ``Investigations and Enforcement.'' 
However, part 405 does not relate to investigations. To avoid 
confusion, the FAA proposed to revise the title of part 405 to a title 
more descriptive of its contents, namely, ``Compliance and 
Enforcement.'' This final rule adopts the change as proposed.
    In addition to the proposed changes to chapter III, the June 2016 
NPRM proposed minor changes to part 11 of chapter I to add a cross 
reference to part 404's commercial space transportation waivers; make 
minor editorial changes and clarify that formal standing advisory 
committees comply with the Federal Advisory Committee Act (FACA); and, 
include the correct internet link to information relevant to filing 
petitions. This final rule adopts the proposed changes, except for 
minor clarifications discussed under the ``Discussion of Public 
Comments'' section of this preamble.

III. Discussion of Public Comments

    The FAA received comments from two entities, the Aeronautical 
Repair Station Association (ARSA) and Space Exploration Technologies 
Corporation (SpaceX). In general, the commenters supported the proposed 
amendments, with SpaceX fully supporting the rule. ARSA suggested minor 
changes to the proposed regulatory text. After carefully considering 
ARSA's comments, the FAA generally adopts the provisions as proposed, 
but makes the two minor changes discussed below.
    ARSA recommended that the Web address referenced in proposed Sec.  
11.63 (http://www.faa.gov/regulations_policies/) be changed to one less 
likely to change over time. The FAA agrees and in the final rule 
changed the Web address to http://www.faa.gov, which is a top-level Web 
domain that is not likely to change. The FAA also added language 
stating that the user should then navigate to the ``Rulemaking'' home 
page.
    ARSA further recommended that the FAA not cite specific examples 
(i.e., the Aviation Rulemaking Advisory Committee (ARAC) and the 
Commercial Space Transportation Advisory Committee (COMSTAC)) of 
standing advisory committees in proposed Sec.  11.27, as doing so might 
be interpreted as excluding or limiting other types of committees from 
which the FAA receives rulemaking recommendations. ARSA argued that 
when another advisory committee is created, rulemaking would again be 
necessary.

[[Page 28532]]

    The FAA carefully considered ARSA's suggested change, and 
determined that the language unambiguously conveys that the FAA may 
convene a variety of advisory committees of which ARAC and COMSTAC are 
examples. Indeed, the existing regulation already contains a reference 
to ARAC, which has not caused confusion or required the FAA to amend 
Sec.  11.27 when additional types of advisory committees are used to 
obtain rulemaking recommendations. That being said, the FAA has opted 
to remove the proposed change. As such, the existing language in Sec.  
11.27 will remain unchanged.

IV. Regulatory Notices and Analyses

A. Regulatory Evaluation

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 and Executive Order 13563 direct 
that each Federal agency shall propose or adopt a regulation only upon 
a reasoned determination that the benefits of the intended regulation 
justify its costs. Second, the Regulatory Flexibility Act of 1980 (Pub. 
L. 96-354) requires agencies to analyze the economic impact of 
regulatory changes on small entities. Third, the Trade Agreements Act 
(Pub. L. 96-39) prohibits agencies from setting standards that create 
unnecessary obstacles to the foreign commerce of the United States. In 
developing U.S. standards, the Trade Act requires agencies to consider 
international standards and, where appropriate, that they be the basis 
of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4) requires agencies to prepare a written assessment of 
the costs, benefits, and other effects of proposed or final rules that 
include a Federal mandate likely to result in the expenditure by State, 
local, or tribal governments, in the aggregate, or by the private 
sector, of $100 million or more annually (adjusted for inflation with 
base year of 1995). This portion of the preamble summarizes the FAA's 
analysis of the economic impacts of this rule.
    Department of Transportation Order DOT 2100.5 prescribes policies 
and procedures for simplification, analysis, and review of regulations. 
If the expected cost impact is so minimal that a proposed or final rule 
does not warrant a full evaluation, this order permits that a statement 
to that effect and the basis for it to be included in the preamble if a 
full regulatory evaluation of the cost and benefits is not prepared. 
Such a determination has been made for this final rule. The reasoning 
for this determination follows.
    This rule will streamline and improve commercial space 
transportation regulations' general rulemaking and petition procedures. 
It will do this by updating the rule language to reflect current 
practice; reorganizing it for clarity and flow; and allowing 
petitioners to file their petitions to the FAA's Office of Commercial 
Space Transportation electronically. In addition, this rule will expand 
the option to satisfy commercial space transportation requirements by 
demonstrating an equivalent level of safety. These changes are 
necessary to ensure the regulations are current, accurate, and not 
unnecessarily burdensome.
    As this rule will streamline and clarify FAA rulemaking procedures, 
codify current practice and expand options to demonstrate an equivalent 
level of safety possibly leading to fewer waiver requests, the expected 
outcome will have only a minor cost savings impact. Therefore, the FAA 
concludes this final rule will result in minimal costs and a regulatory 
evaluation was not prepared. This conclusion is further bolstered by 
the fact that the FAA received no comments on this minimal cost 
determination.
    FAA has, therefore, determined that this final rule is not a 
``significant regulatory action'' as defined in section 3(f) of 
Executive Order 12866, and is not ``significant'' as defined in DOT's 
Regulatory Policies and Procedures.

B. Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation.'' To achieve this principle, agencies are 
required to solicit and consider flexible regulatory proposals and to 
explain the rationale for their actions to assure that such proposals 
are given serious consideration.'' The RFA covers a wide-range of small 
entities, including small businesses, not-for-profit organizations, and 
small governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to 
have a significant economic impact on a substantial number of small 
entities, section 605(b) of the RFA provides that the head of the 
agency may so certify and a regulatory flexibility analysis is not 
required. The certification must include a statement providing the 
factual basis for this determination, and the reasoning should be 
clear.
    This final rule is expected to have an effect on States, local 
governments, large entities such as Boeing and a significant number of 
small entities such as Scaled Composites, LLC, Masten Space Systems, 
XCOR Aerospace, Escape Dynamics, and Space Information Laboratories.
    As this rule will streamline and clarify FAA rulemaking procedures, 
codify current practice and expand options to demonstrate an equivalent 
level of safety, the expected outcome will have only minor cost savings 
impact on any small entity affected by this rulemaking action. 
Therefore, the FAA concludes the rule will have only a minimal economic 
cost. This conclusion is further bolstered by the fact that the FAA 
received no comments on this minimal cost determination.
    If an agency determines that a rulemaking will not result in a 
significant economic impact on a substantial number of small entities, 
the head of the agency may so certify under section 605(b) of the RFA. 
Therefore, as provided in section 605(b), the head of the FAA certifies 
that this rulemaking will not result in a significant economic impact 
on a substantial number of small entities.

C. International Trade Impact Assessment

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

[[Page 28533]]

same costs on domestic and international entities and thus has a 
neutral trade impact.

D. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $155 million in lieu of $100 
million.
    This rule does not contain such a mandate; therefore, the 
requirements of Title II of the Unfunded Mandates Reform Act do not 
apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The FAA has determined that 
there is no new requirement for information collection associated with 
this final rule.

F. International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these regulations.

G. Environmental Analysis

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

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. The agency determined 
that this action will not have a substantial direct effect on the 
States, or the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, and, therefore, does not have Federalism 
implications.

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

    The FAA analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). The agency has determined that it 
is not a ``significant energy action'' under the executive order and it 
is not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

C. Executive Order 13771, Reducing Regulation and Controlling 
Regulatory Costs

    This final rule is considered an E.O. 13771 deregulatory action. 
The FAA expects minor cost savings that cannot be quantified. The rule 
streamlines and improves commercial space transportation regulations' 
general rulemaking and petition procedures. These changes should make 
it easier to read and understand the regulations, and lead to minimal 
cost savings that are not quantifiable. The rule also allows 
petitioners to file their petitions to the FAA's Office of Commercial 
Space Transportation electronically. This could save minimal costs over 
mailing petitions. Finally, the rule expands the options to demonstrate 
an equivalent level of safety. This would also reduce the number of 
waivers that have to be approved. These cost savings are expected to be 
minimal and not quantifiable, as we don't know the effect of having 
acceptance of the equivalent level of safety approach earlier in the 
process than the alternative of requesting a waiver later in the 
process. We also don't know how often a petitioner will choose to 
demonstrate an alternative level of safety as opposed to requesting a 
waiver.

VI. How To Obtain Additional Information

A. Rulemaking Documents

    An electronic copy of a rulemaking document may be obtained by 
using the internet--
    1. Search the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visit the FAA's Regulations and Policies web page at http://www.faa.gov/regulations_policies/ or
    3. Access the Government Printing Office's web page at http://www.thefederalregister.org/fdsys/.
    Copies may also be obtained by sending a request (identified by 
notice, amendment, or docket number of this rulemaking) to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW, Washington, DC 20591, or by calling (202) 267-9680.

B. Comments Submitted to the Docket

    Comments received may be viewed by going to http://www.regulations.gov and following the online instructions to search the 
docket number for this action. Anyone is able to search the electronic 
form of all comments received into any of the FAA's dockets by the name 
of the individual submitting the comment (or signing the comment, if 
submitted on behalf of an association, business, labor union, etc.).

C. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA to comply with small entity requests for information 
or advice about compliance with statutes and regulations within its 
jurisdiction. A small entity with questions regarding this document, 
may contact its local FAA official, or the person listed under the FOR 
FURTHER INFORMATION CONTACT heading at the beginning of the preamble. 
To find out more about SBREFA on the internet, visit http://www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects

14 CFR Part 11

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

14 CFR Part 404

    Administrative practice and procedure, Space transportation and 
exploration.

14 CFR Part 405

    Investigations, Penalties, Space transportation and exploration.

14 CFR Part 420

    Environmental protection, Reporting and recordkeeping requirements, 
Space transportation and exploration.

14 CFR Part 431

    Aviation safety, Environmental protection, Investigations, 
Reporting and recordkeeping requirements, Space transportation and 
exploration.

14 CFR Part 435

    Aviation safety, Environmental protection, Investigations, 
Reporting

[[Page 28534]]

and recordkeeping requirements, Space transportation and exploration.

14 CFR Part 437

    Aircraft, Aviation safety, Reporting and recordkeeping 
requirements, Space transportation and exploration.

14 CFR Part 460

    Aircraft, Aviation safety, Reporting and recordkeeping 
requirements, Space transportation and exploration.

The Amendments

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

PART 11--GENERAL RULEMAKING PROCEDURES

0
1. The authority citation for part 11 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40103, 40105, 
40109, 40113, 44110, 44502, 44701-44702, 44711, 46102, and 51 U.S.C. 
50901-50923.


0
2. Revise Sec.  11.15 to read as follows:


Sec.  11.15   What is a petition for exemption?

    A petition for exemption is a request to the FAA by an individual 
or entity asking for relief from the requirements of a current 
regulation. For petitions for waiver of commercial space transportation 
regulations, see part 404 of this title.

0
3. Amend Sec.  11.63 by revising paragraph (a)(1) to read as follows:


Sec.  11.63   How and to whom do I submit my petition for rulemaking or 
petition for exemption?

    (a) * * *
    (1) By electronic submission, submit your petition for rulemaking 
or exemption to the FAA through the internet at http://www.regulations.gov, the Federal Docket Management System website. For 
additional instructions, you may visit http://www.faa.gov, and navigate 
to the Rulemaking home page.
* * * * *

PART 404--PETITION AND RULEMAKING PROCEDURES

0
4. The authority citation for part 404 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
5. The heading of part 404 is revised to read as set forth above.

0
6. Remove the headings of subparts A and B.

0
7. Revise Sec.  404.1 to read as follows:


Sec.  404.1   Scope.

    This part establishes procedures for issuing regulations and for 
filing a petition for waiver or petition for rulemaking to the 
Associate Administrator for Commercial Space Transportation.

0
8. Amend Sec.  404.3 by revising the section heading and paragraphs 
(a)(3), (b), (c), (d), and adding new paragraphs (e), (f), and (g) to 
read as follows:


Sec.  404.3   General.

    (a) * * *
    (3) Waive the requirement for a license, except as provided in 
Sec.  404.7(b).
    (b) A petition filed under this section may request, under Sec.  
413.9 of this chapter, that the Associate Administrator withhold 
certain trade secrets or proprietary commercial or financial data from 
public disclosure.
    (c) Each petitioner filing under this section must:
    (1) For electronic submission, send one copy of the petition by 
email to the Office of Commercial Space Transportation at 
[email protected]; or
    (2) For paper submission, send one copy of the petition to the 
Office of Commercial Space Transportation, Federal Aviation 
Administration, 800 Independence Avenue SW, Room 331, Washington, DC 
20591.
    (d) Each petition filed under this section must include the 
petitioner's name, mailing address, telephone number and any other 
contact information, such as an email address or a fax number.
    (e) Notification. When the Associate Administrator determines that 
a petition should be granted or denied, the Associate Administrator 
notifies the petitioner of the Associate Administrator's action and the 
reasons supporting the action.
    (f) Reconsideration. Any person may petition the FAA to reconsider 
a denial of a petition the person filed. The petitioner must send a 
request for reconsideration within 60 days after being notified of the 
denial to the same address to which the original petition was filed. 
For the FAA to accept the reconsideration request, the petitioner must 
show--
    (1) There is a significant additional fact and the reason it was 
not included in the original petition;
    (2) The FAA made an important factual error in its denial of the 
original petition; or
    (3) The denial is not in accordance with the applicable law and 
regulations.
    (g) Public hearing. No public hearing, argument or other proceeding 
is held on a petition before its disposition under this section.

0
9. Revise Sec.  404.5 to read as follows:


Sec.  404.5   Filing a petition for waiver.

    A petition for waiver must be submitted at least 60 days before the 
proposed effective date of the waiver unless the petitioner shows good 
cause for later submission in the petition, and the petition for waiver 
must--
    (a) Include the specific section or sections of 14 CFR chapter III 
from which the petitioner seeks relief;
    (b) Include the extent of the relief sought and the reason the 
relief is being sought;
    (c) Include any facts, views, and data available to the petitioner 
to support the waiver request; and
    (d) Show why granting the request for relief is in the public 
interest and will not jeopardize the public health and safety, safety 
of property, and national security and foreign policy interests of the 
United States.

0
10. Add Sec.  404.7 to read as follows:


Sec.  404.7   Action on a petition for waiver.

    (a) Grant of waiver. The Associate Administrator may grant a 
waiver, except as provided in paragraph (b) of this section, if the 
Associate Administrator determines that the waiver is in the public 
interest and will not jeopardize public health and safety, the safety 
of property, or any national security or foreign policy interest of the 
United States.
    (b) Waiver ineligibility. The FAA may not grant a waiver that would 
permit the launch or reentry of a launch vehicle or a reentry vehicle 
without a license or permit if a human being will be on board.
    (c) Denial of waiver. If the Associate Administrator determines 
that the petition does not justify granting a waiver, the Associate 
Administrator denies the petition.

0
11. Add Sec.  404.9 to read as follows:


Sec.  404.9   Filing a petition for rulemaking.

    A petition for rulemaking filed under this part must be made in 
accordance with 14 CFR 11.71.

0
12. Revise Sec.  404.11 to read as follows:


Sec.  404.11   Action on a petition for rulemaking.

    The FAA will process petitions for rulemaking under this part in 
accordance with 14 CFR 11.73.

0
13. Revise Sec.  404.13 to read as follows:


Sec.  404.13   Rulemaking.

    (a) The FAA's rulemaking procedures are located in subpart A of 
part 11 of this title, under the General, Written

[[Page 28535]]

Comments, and Public Meetings and Other Proceedings headings.
    (b) In addition to the rulemaking procedures referenced in 
paragraph (a) of this section, the provisions of Sec. Sec.  404.17 and 
404.19 also apply.


Sec.  404.15   [Removed and Reserved]

0
14. Remove and reserve Sec.  404.15.

PART 405--COMPLIANCE AND ENFORCEMENT

0
15. The authority citation for part 405 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
16. The heading of part 405 is revised to read as set forth above.

PART 420--LICENSE TO OPERATE A LAUNCH SITE

0
17. The authority citation for part 420 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
18. Revise Sec.  420.1 to read as follows:


Sec.  420.1   General.

    (a) Scope. This part prescribes the information and demonstrations 
that must be provided to the FAA as part of a license application, the 
bases for license approval, license terms and conditions, and post-
licensing requirements with which a licensee shall comply to remain 
licensed. Requirements for preparing a license application are 
contained in part 413 of this subchapter.
    (b) Equivalent level of safety. Each requirement of this part 
applies unless the applicant or licensee clearly and convincingly 
demonstrates that an alternative approach provides an equivalent level 
of safety to the requirement of this part.

0
19. Amend Sec.  420.23 by revising paragraphs (a)(3), (b)(4), and 
(c)(2), and removing paragraph (c)(3) to read as follows:


Sec.  420.23   Launch site location review-- flight corridor.

    (a) * * *
    (3) Uses one of the methodologies provided in appendix A or B of 
this part.
    (b) * * *
    (4) Uses one of the methodologies provided in appendix A or B to 
this part.
    (c) * * *
    (2) An applicant shall base its analysis on an unguided suborbital 
launch vehicle whose final launch vehicle stage apogee represents the 
intended use of the launch point.
* * * * *

0
20. Amend Sec.  420.25 by revising paragraph (a) to read as follows:


Sec.  420.25   Launch site location review--risk analysis.

    (a) If a flight corridor or impact dispersion area defined by Sec.  
420.23 contains a populated area, the applicant shall estimate the 
casualty expectation associated with the flight corridor or impact 
dispersion area. An applicant shall use the methodology provided in 
appendix C to this part for guided orbital or suborbital expendable 
launch vehicles and appendix D for unguided suborbital launch vehicles.
* * * * *

PART 431--LAUNCH AND REENTRY OF A REUSABLE LAUNCH VEHICLE (RLV)

0
21. The authority citation for part 431 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
22. Revise Sec.  431.1 to read as follows:


Sec.  431.1   General.

    (a) Scope. This part prescribes requirements for obtaining a 
reusable launch vehicle (RLV) mission license and post-licensing 
requirements with which a licensee must comply to remain licensed. 
Requirements for preparing a license application are contained in part 
413 of this subchapter.
    (b) Equivalent level of safety. Each requirement of this part 
applies unless the applicant or licensee clearly and convincingly 
demonstrates that an alternative approach provides an equivalent level 
of safety to the requirement of this part.

PART 435--REENTRY OF A REENTRY VEHICLE OTHER THAN A REUSABLE LAUNCH 
VEHICLE (RLV)

0
23. The authority citation for part 435 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
24. Revise Sec.  435.1 to read as follows:


Sec.  435.1   General.

    (a) Scope. This part prescribes requirements for obtaining a 
license to reenter a reentry vehicle other than a reusable launch 
vehicle (RLV), and postlicensing requirements with which a licensee 
must comply to remain licensed. Requirements for preparing a license 
application are contained in part 413 of this subchapter.
    (b) Equivalent level of safety. Each requirement of this part 
applies unless the applicant or licensee clearly and convincingly 
demonstrates that an alternative approach provides an equivalent level 
of safety to the requirement of this part.

PART 437--EXPERIMENTAL PERMITS

0
25. The authority citation for part 437 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
26. Revise Sec.  437.1 to read as follows:


Sec.  437.1   Scope and organization of this part.

    (a) Scope. This part prescribes requirements for obtaining an 
experimental permit. It also prescribes post-permitting requirements 
with which a permittee must comply to maintain its permit. Part 413 of 
this subchapter contains procedures for applying for an experimental 
permit.
    (b) Equivalent level of safety. Each requirement of this part 
applies unless the applicant or permittee clearly and convincingly 
demonstrates that an alternative approach provides an equivalent level 
of safety to the requirement of this part.
    (c) Organization of this part. Subpart A contains general 
information about an experimental permit. Subpart B contains 
requirements to obtain an experimental permit. Subpart C contains the 
safety requirements with which a permittee must comply while conducting 
permitted activities. Subpart D contains terms and conditions of an 
experimental permit.

0
27. Amend Sec.  437.65 by revising paragraph (b) to read as follows:


Sec.  437.65   Collision avoidance analysis.

* * * * *
    (b) The collision avoidance analysis must establish each period 
during which a permittee may not initiate flight to ensure that a 
permitted vehicle and any jettisoned components do not pass closer than 
200 kilometers to a manned or mannable orbital object.

PART 460--HUMAN SPACE FLIGHT REQUIREMENTS

0
28. The authority citation for part 460 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
29. Amend Sec.  460.5 by revising paragraph (d) to read as follows:


Sec.  460.5   Crew qualifications and training.

* * * * *
    (d) A pilot or a remote operator may demonstrate an equivalent 
level of safety to paragraph (c)(1) of this section through the license 
or permit process.
* * * * *


[[Page 28536]]


    Issued in Washington, DC, on June 6, 2018.
Daniel K. Elwell,
Acting Administrator.
[FR Doc. 2018-13177 Filed 6-19-18; 8:45 am]
 BILLING CODE 4910-13-P



                                              28528              Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations

                                              indicates that the labor market has continued             publication at least 30 days prior to a                   For the reasons set forth in the
                                              to strengthen and that economic activity has              rule’s effective date is not required for               preamble, the Board amends 12 CFR
                                              been rising at a solid rate. Job gains have               (1) a substantive rule which grants or                  part 204 as follows:
                                              been strong, on average, in recent months,
                                                                                                        recognizes an exemption or relieves a
                                              and the unemployment rate has declined.                                                                           PART 204—RESERVE
                                              Recent data suggest that growth of household              restriction; (2) interpretive rules and
                                              spending has picked up, while business fixed              statements of policy; or (3) a rule for                 REQUIREMENTS OF DEPOSITORY
                                              investment has continued to grow strongly.                which the agency finds good cause for                   INSTITUTIONS (REGULATION D)
                                              On a 12-month basis, both overall inflation               shortened notice and publishes its
                                              and inflation for items other than food and               reasoning with the rule.9                               ■ 1. The authority citation for part 204
                                              energy have moved close to 2 percent.                        The Board has determined that good                   continues to read as follows:
                                              Indicators of longer-term inflation                       cause exists for finding that the notice,                 Authority: 12 U.S.C. 248(a), 248(c), 371a,
                                              expectations are little changed, on balance.              public comment, and delayed effective                   461, 601, 611, and 3105.
                                                Consistent with its statutory mandate, the              date provisions of the APA are
                                              Committee seeks to foster maximum                                                                                 ■ 2. Section 204.10 is amended by
                                              employment and price stability. The
                                                                                                        unnecessary, impracticable, or contrary                 revising paragraph (b)(5) to read as
                                              Committee expects that further gradual                    to the public interest with respect to                  follows:
                                              increases in the target range for the federal             these final amendments to Regulation D.
                                              funds rate will be consistent with sustained              The rate increases for IORR and IOER                    § 204.10       Payment of interest on balances.
                                              expansion of economic activity, strong labor              that are reflected in the final                         *       *    *      *    *
                                              market conditions, and inflation near the                 amendments to Regulation D were made                        (b) * * *
                                              Committee’s symmetric 2 percent objective                 with a view towards accommodating                           (5) The rates for IORR and IOER are:
                                              over the medium term. Risks to the economic               commerce and business and with regard
                                              outlook appear roughly balanced.                          to their bearing upon the general credit
                                                In view of realized and expected labor                                                                                                                             Rate
                                              market conditions and inflation, the
                                                                                                        situation of the country. Notice and                                                                     (percent)
                                              Committee decided to raise the target range               public comment would prevent the
                                                                                                        Board’s action from being effective as                  IORR .........................................         1.95
                                              for the federal funds rate to 13⁄4 to 2 percent.
                                                                                                        promptly as necessary in the public                     IOER .........................................         1.95
                                              The stance of monetary policy remains
                                              accommodative, thereby supporting strong                  interest and would not otherwise serve
                                              labor market conditions and a sustained                   any useful purpose. Notice, public                      *        *        *        *        *
                                              return to 2 percent inflation.                            comment, and a delayed effective date                     By order of the Board of Governors of the
                                              A Federal Reserve Implementation note                     would create uncertainty about the                      Federal Reserve System, June 15, 2018.
                                              released simultaneously with the                          finality and effectiveness of the Board’s               Ann Misback,
                                              announcement stated that:                                 action and undermine the effectiveness                  Secretary of the Board.
                                                                                                        of that action. Accordingly, the Board                  [FR Doc. 2018–13267 Filed 6–19–18; 8:45 am]
                                                 The Board of Governors of the Federal
                                              Reserve System voted unanimously to raise
                                                                                                        has determined that good cause exists to                BILLING CODE 6210–01–P
                                              the interest rate paid on required and excess             dispense with the notice, public
                                              reserve balances to 1.95 percent, effective               comment, and delayed effective date
                                              June 14, 2018. Setting the interest rate paid             procedures of the APA with respect to
                                                                                                                                                                DEPARTMENT OF TRANSPORTATION
                                              on required and excess reserve balances 5                 these final amendments to Regulation D.
                                              basis points below the top of the target range                                                                    Federal Aviation Administration
                                              for the federal funds rate is intended to foster          IV. Regulatory Flexibility Analysis
                                              trading in the federal funds market at rates                 The Regulatory Flexibility Act
                                              well within the FOMC’s target range.                                                                              14 CFR Parts 11, 404, 405, 420, 431,
                                                                                                        (‘‘RFA’’) does not apply to a rulemaking
                                                                                                                                                                435, 437, 460
                                              As a result, the Board is amending                        where a general notice of proposed
                                              § 204.10(b)(5) of Regulation D to change                  rulemaking is not required.10 As noted                  [Docket No.: FAA–2016–6761; Amdt. Nos.
                                              IORR to 1.95 percent and IOER to 1.95                     previously, the Board has determined                    11–62, 404–6, 405–6, 420–8, 431–6, 435–4,
                                              percent.                                                  that it is unnecessary and contrary to                  437–2, 460–2]
                                                                                                        the public interest to publish a general
                                              III. Administrative Procedure Act                                                                                 RIN 2120–AK76
                                                                                                        notice of proposed rulemaking for this
                                                 In general, the Administrative                         final rule. Accordingly, the RFA’s                      Updates to Rulemaking and Waiver
                                              Procedure Act (‘‘APA’’) 7 imposes three                   requirements relating to an initial and                 Procedures and Expansion of the
                                              principal requirements when an agency                     final regulatory flexibility analysis do                Equivalent Level of Safety Option
                                              promulgates legislative rules (rules                      not apply.
                                              made pursuant to congressionally                                                                                  AGENCY:  Federal Aviation
                                                                                                        V. Paperwork Reduction Act
                                              delegated authority): (1) Publication                                                                             Administration (FAA), DOT.
                                              with adequate notice of a proposed rule;                     In accordance with the Paperwork                     ACTION: Final rule.
                                              (2) followed by a meaningful                              Reduction Act (‘‘PRA’’) of 1995,11 the
                                              opportunity for the public to comment                     Board reviewed the final rule under the                 SUMMARY:    This action streamlines and
                                              on the rule’s content; and (3)                            authority delegated to the Board by the                 improves commercial space
                                              publication of the final rule not less                    Office of Management and Budget. The                    transportation regulations’ general
                                              than 30 days before its effective date.                   final rule contains no requirements                     rulemaking and petition procedures to
                                              The APA provides that notice and                          subject to the PRA.                                     better reflect current practice;
                                              comment procedures do not apply if the                    List of Subjects in 12 CFR Part 204                     reorganizes the regulations for clarity
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                                              agency for good cause finds them to be                                                                            and flow; and allows petitioners to file
                                                                                                          Banks, Banking, Reporting and                         their petitions to the FAA’s Office of
                                              ‘‘unnecessary, impracticable, or contrary                 recordkeeping requirements.
                                              to the public interest.’’ 8 Section 553(d)                                                                        Commercial Space Transportation
                                              of the APA also provides that                               95
                                                                                                                                                                electronically. Further, it expands the
                                                                                                              U.S.C. 553(d).
                                                                                                          10 5 U.S.C. 603 and 604.
                                                                                                                                                                option to satisfy commercial space
                                                75   U.S.C. 551 et seq.                                   11 44 U.S.C. 3506; see 5 CFR part 1320 Appendix       transportation requirements by
                                                85   U.S.C. 553(b)(3)(A).                               A.1.                                                    demonstrating an equivalent level of


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                                                               Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations                                          28529

                                              safety to the regulatory requirements.                  U.S.C. 50901–50923 (the Act),                          petition procedures in part 11 relate to
                                              These changes are necessary to ensure                   authorizes the Department of                           those in part 404, and ensure the
                                              that the regulations regarding petitions                Transportation and thus the FAA,                       procedures reflect current practice;
                                              are clear and current, and that the                     through delegations, to oversee, license,              reorganize part 404 to make clear the
                                              commercial space launch industry is                     and regulate commercial launch and                     distinct requirements for petitions for
                                              more easily able to request approvals of                reentry activities, and the operation of               waivers and petitions for rulemaking;
                                              safe alternative means of regulatory                    launch and reentry sites as carried out                amend the title of part 405 to better
                                              compliance.                                             by U.S. citizens or within the United                  reflect the content; and expand the
                                              DATES: Effective August 20, 2018.                       States. 51 U.S.C. 50904, 50905. The Act                equivalent level of safety option so that
                                              ADDRESSES: For information on where to                  directs the FAA to exercise this                       it applies more broadly throughout 14
                                              obtain copies of rulemaking documents                   responsibility consistent with public                  CFR chapter III. In addition, this final
                                              and other information related to this                   health and safety, safety of property,                 rule is adopting minor changes to part
                                              final rule, see ‘‘How To Obtain                         and the national security and foreign
                                                                                                                                                             11.
                                              Additional Information’’ in the                         policy interests of the United States. 51
                                                                                                      U.S.C. 50905. The Act directs the FAA                     This final rule reorganizes part 404 to
                                              SUPPLEMENTARY INFORMATION section of
                                                                                                      to regulate only to the extent necessary               clarify and streamline the requirements.
                                              this document.
                                                                                                      to protect the public health and safety,               The reorganization moves the
                                              FOR FURTHER INFORMATION CONTACT: For
                                                                                                      safety of property, and national security              requirements for petitions for waivers
                                              questions concerning this action,
                                              contact Joshua Easterson, AST–300,                      and foreign policy interests of the                    and petitions for rulemaking into
                                              Office of Commercial Space                              United States. 51 U.S.C. 50901(a)(7).                  separate sections but does not
                                              Transportation, Federal Aviation                        The FAA is also responsible for                        substantially change the requirements.
                                              Administration, 800 Independence                        encouraging, facilitating, and promoting               Instead, some requirements, as
                                              Avenue SW, Washington, DC 20591;                        commercial space launches by the                       discussed below, were revised for
                                              telephone (202) 267–5150; email                         private sector. 51 U.S.C. 50903.                       clarity, to remove duplicate information
                                              Joshua.Easterson@faa.gov.                               I. Overview of Final Rule                              and to ensure current practice is
                                              SUPPLEMENTARY INFORMATION:                                                                                     reflected. The reorganization of part 404
                                                                                                        The FAA is adopting this final rule to:              as adopted is shown in the below table.
                                              Authority for This Rulemaking                           Streamline the general rulemaking and
                                                The Commercial Space Launch Act of                    petition procedures in part 404; clarify
                                              1984, as amended and re-codified at 51                  how the general rulemaking and
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                                              28530            Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations




                                                 In addition to reorganizing part 404,                   • Amends § 404.5 to require that the                   • Changes the current title of part
                                              this final rule:                                        petition must reference the specific                   405, ‘‘Investigations and Enforcement,’’
                                                 • Adds a cross reference in § 11.15 to               section or sections of 14 CFR chapter III              to ‘‘Compliance and Enforcement,’’ to
                                              part 404’s commercial space                             from which relief is sought;                           better reflect the content;
                                              transportation waivers;                                    • Amends § 404.5 to require that the                   • Expands the equivalent level of
                                                 • Includes in § 11.63 the correct                    petition must state the reasons why                    safety option to each requirement of
                                              internet link where petitioners can find                granting the request for relief is in the              parts 420 (License To Operate A Launch
                                              additional information on filing their                  public interest and will not jeopardize                Site), 431 (Launch And Reentry Of A
                                              petitions;                                              the public health and safety, safety of                Reusable Launch Vehicle), 435 (Reentry
                                                                                                      property, and national security and                    Of A Reentry Vehicle Other Than A
                                                 • Amends § 404.1 to state that the                   foreign policy interests of the United                 Reusable Launch Vehicle), and 437
                                              scope of part 404 ‘‘establishes                         States;                                                (Experimental Permits); and,
                                              procedures for issuing regulations and                     • Amends § 404.7 to state that under                   • Expands the equivalent level of
                                              for filing a petition for waiver or                     51 U.S.C. 50905(b)(3), the FAA is not                  safety option to § 460.5(d) as a means of
                                              petition for rulemaking to the Associate                authorized to grant a waiver that would                compliance with pilot qualification
                                              Administrator for Commercial Space                      permit the launch or reentry of a launch               requirements.
                                              Transportation;’’                                       vehicle or reentry vehicle without a                      This final rule will result in
                                                 • Revises § 404.3 such that petitioners              license or permit if a human being                     nonquantified benefits for the
                                              need only file one copy of their petition               would be on board;                                     commercial space transportation
                                              to the Office of Commercial Space                          • Removes information in §§ 404.9,                  industry, the interested public, and the
                                              Transportation (AST) by mailing it to                   404.11, and 404.13 regarding filing                    government by streamlining and
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                                              AST’s physical address or emailing it to                petitions for rulemaking, the FAA’s                    improving commercial space
                                              the AST email address provided in                       action on petitions for rulemaking, and                transportation regulations’ general
                                              § 404.3;                                                the agency’s general rulemaking process                rulemaking and petition procedures and
                                                 • Removes the requirement in § 404.3                 that duplicates part 11 and, instead,                  allowing petitioners to file their
                                              that a petition for rulemaking contain a                cross references relevant sections of part             petitions to the FAA’s Office of
                                              summary that the FAA may cause to be                    11 in §§ 404.9, 404.11, and 404.13,                    Commercial Space Transportation
                                              published in the Federal Register;                      respectively;                                          electronically. In addition, this rule
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                                                               Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations                                          28531

                                              expands the option to satisfy                           sections of the launch site location                   or permit issued applying this
                                              commercial space transportation                         review and explosive siting                            provision.
                                              requirements by demonstrating an                        requirements to obtain a license to                       The title of part 405 was
                                              equivalent level of safety, thereby                     operate a launch site in part 420,                     ‘‘Investigations and Enforcement.’’
                                              providing more choice to operators and                  collision avoidance distances for                      However, part 405 does not relate to
                                              reducing the number of waivers that                     experimental permits in part 437, the                  investigations. To avoid confusion, the
                                              must be prepared by the industry and                    requirement that a remote operator                     FAA proposed to revise the title of part
                                              processed by the government.                            possess an FAA pilot certificate with an               405 to a title more descriptive of its
                                                                                                      instrument rating in the Human Space                   contents, namely, ‘‘Compliance and
                                              II. Background
                                                                                                      Flight Requirements in part 460, and                   Enforcement.’’ This final rule adopts the
                                                 On June 1, 2016, the FAA published                   environmental controls and life support                change as proposed.
                                              a notice of proposed rulemaking                         system requirements also in part 460.                     In addition to the proposed changes to
                                              (NPRM) (81 FR 34919) proposing to                       This restricted the FAA’s flexibility in               chapter III, the June 2016 NPRM
                                              amend 14 CFR chapter III to modify and                  approving launch and reentry related                   proposed minor changes to part 11 of
                                              streamline the FAA’s commercial space                   activities, where the operator can                     chapter I to add a cross reference to part
                                              transportation regulations regarding                    convincingly demonstrate in an                         404’s commercial space transportation
                                              general rulemaking and petition                         application that an alternative approach               waivers; make minor editorial changes
                                              procedures; expand the equivalent level                 to the requirements of chapter III                     and clarify that formal standing
                                              of safety option to provide the                         provides an equivalent level of safety.                advisory committees comply with the
                                              commercial space transportation                           While applicants are still able to                   Federal Advisory Committee Act
                                              industry with alternative means of                      petition for waiver of any regulatory                  (FACA); and, include the correct
                                              satisfying chapter III requirements; and,               requirement, the June 2016 NPRM                        internet link to information relevant to
                                              make a minor change to revise a part                    proposed to expand the equivalent level                filing petitions. This final rule adopts
                                              title.                                                  of safety option so that it applies more
                                                 The Office of Commercial Space                                                                              the proposed changes, except for minor
                                                                                                      broadly to all requirements in parts 420,              clarifications discussed under the
                                              Transportation (AST) was established                    431, 435, and 437 in chapter III. The
                                              under the Commercial Space Launch                                                                              ‘‘Discussion of Public Comments’’
                                                                                                      waiver process can sometimes be more                   section of this preamble.
                                              Act of 1984 (the Act) as part of the                    time-consuming than pursuing an
                                              Department of Transportation. In 1988,                  equivalent level of safety determination.              III. Discussion of Public Comments
                                              pursuant to the Act, rulemaking and                     The NPRM also proposed clarifying that
                                              petition procedures specific to                                                                                   The FAA received comments from
                                                                                                      the equivalent level of safety provision               two entities, the Aeronautical Repair
                                              commercial space operations were                        for FAA pilot certificates applicable to
                                              codified in 14 CFR, chapter III, part 404.                                                                     Station Association (ARSA) and Space
                                                                                                      remote operators in part 460 should also
                                              In November 1995, AST was transferred                                                                          Exploration Technologies Corporation
                                                                                                      be applicable to all pilots under part
                                              to the FAA, becoming the agency’s only                                                                         (SpaceX). In general, the commenters
                                                                                                      460.
                                              space-related line of business. Whereas                   Expanding the equivalent level of                    supported the proposed amendments,
                                              AST’s rulemaking and petition                           safety option is expected to reduce                    with SpaceX fully supporting the rule.
                                              requirements reside in part 404, the                    paperwork burdens without negatively                   ARSA suggested minor changes to the
                                              FAA’s rulemaking and petition                           impacting safety. To utilize the option                proposed regulatory text. After carefully
                                              procedures are codified in part 11. The                 applicants must demonstrate that they                  considering ARSA’s comments, the FAA
                                              two sets of procedures are mostly                       are achieving a level of safety equivalent             generally adopts the provisions as
                                              duplicative and at times confusing as to                to any safety parameters specified in the              proposed, but makes the two minor
                                              applicability. Therefore, the FAA issued                regulations. The FAA will evaluate                     changes discussed below.
                                              the June 2016 NPRM to propose to                        every request for an alternative means of                 ARSA recommended that the Web
                                              reorganize, streamline, and modify the                  regulatory compliance under the                        address referenced in proposed § 11.63
                                              part 404 requirements. This final rule                  equivalent level of safety provisions to               (http://www.faa.gov/regulations_
                                              adopts the proposed changes to part 404                 ensure that the safety of the public,                  policies/) be changed to one less likely
                                              without change.                                         property, or any national security or                  to change over time. The FAA agrees
                                                 An equivalent level of safety                        foreign policy interest of the United                  and in the final rule changed the Web
                                              provision allows an applicant to                        States is maintained to be consistent                  address to http://www.faa.gov, which is
                                              propose an alternative method to meet                   with the requirements in chapter III of                a top-level Web domain that is not
                                              the safety intent of a current regulatory               Title 14 of the Code of Federal                        likely to change. The FAA also added
                                              requirement, by providing a clear and                   Regulations.                                           language stating that the user should
                                              convincing demonstration through                          This final rule adopts the proposed                  then navigate to the ‘‘Rulemaking’’
                                              technical rationale that the proposed                   expansion of the equivalent level of                   home page.
                                              alternative approach provides a level of                safety option without change. In                          ARSA further recommended that the
                                              safety equivalent to the requirement it                 addition to previously available                       FAA not cite specific examples (i.e., the
                                              would replace. An equivalent level of                   opportunities to pursue an equivalent                  Aviation Rulemaking Advisory
                                              safety means an approximately equal                     level of safety, applicants will now have              Committee (ARAC) and the Commercial
                                              level of safety as determined by                        the option to pursue an equivalent level               Space Transportation Advisory
                                              qualitative or quantitative means. Prior                of safety option for each requirement of               Committee (COMSTAC)) of standing
                                              to this rulemaking, the option to satisfy               parts 420 (License To Operate A Launch                 advisory committees in proposed
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                                              a commercial space transportation                       Site), 431 (Launch And Reentry Of A                    § 11.27, as doing so might be interpreted
                                              regulation by demonstrating an                          Reusable Launch Vehicle), 435 (Reentry                 as excluding or limiting other types of
                                              equivalent level of safety was limited to               Of A Reentry Vehicle Other Than A                      committees from which the FAA
                                              the launch license provisions for                       Reusable Launch Vehicle), and 437                      receives rulemaking recommendations.
                                              expendable launch vehicles in parts 415                 (Experimental Permits). The equivalent                 ARSA argued that when another
                                              and 417, and to some specific sections                  level of safety determination by the FAA               advisory committee is created,
                                              of other parts in chapter III including                 will be included as part of any license                rulemaking would again be necessary.


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                                              28532            Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations

                                                The FAA carefully considered                          this final rule. The reasoning for this                   However, if an agency determines that
                                              ARSA’s suggested change, and                            determination follows.                                 a rule is not expected to have a
                                              determined that the language                               This rule will streamline and improve               significant economic impact on a
                                              unambiguously conveys that the FAA                      commercial space transportation                        substantial number of small entities,
                                              may convene a variety of advisory                       regulations’ general rulemaking and                    section 605(b) of the RFA provides that
                                              committees of which ARAC and                            petition procedures. It will do this by                the head of the agency may so certify
                                              COMSTAC are examples. Indeed, the                       updating the rule language to reflect                  and a regulatory flexibility analysis is
                                              existing regulation already contains a                  current practice; reorganizing it for                  not required. The certification must
                                              reference to ARAC, which has not                        clarity and flow; and allowing                         include a statement providing the
                                              caused confusion or required the FAA                    petitioners to file their petitions to the             factual basis for this determination, and
                                              to amend § 11.27 when additional types                  FAA’s Office of Commercial Space                       the reasoning should be clear.
                                              of advisory committees are used to                      Transportation electronically. In                         This final rule is expected to have an
                                              obtain rulemaking recommendations.                      addition, this rule will expand the                    effect on States, local governments, large
                                              That being said, the FAA has opted to                   option to satisfy commercial space                     entities such as Boeing and a significant
                                              remove the proposed change. As such,                    transportation requirements by                         number of small entities such as Scaled
                                              the existing language in § 11.27 will                   demonstrating an equivalent level of                   Composites, LLC, Masten Space
                                              remain unchanged.                                       safety. These changes are necessary to                 Systems, XCOR Aerospace, Escape
                                                                                                      ensure the regulations are current,                    Dynamics, and Space Information
                                              IV. Regulatory Notices and Analyses                     accurate, and not unnecessarily                        Laboratories.
                                                                                                      burdensome.                                               As this rule will streamline and
                                              A. Regulatory Evaluation
                                                                                                         As this rule will streamline and                    clarify FAA rulemaking procedures,
                                                 Changes to Federal regulations must                  clarify FAA rulemaking procedures,                     codify current practice and expand
                                              undergo several economic analyses.                      codify current practice and expand                     options to demonstrate an equivalent
                                              First, Executive Order 12866 and                        options to demonstrate an equivalent                   level of safety, the expected outcome
                                              Executive Order 13563 direct that each                  level of safety possibly leading to fewer              will have only minor cost savings
                                              Federal agency shall propose or adopt a                 waiver requests, the expected outcome                  impact on any small entity affected by
                                              regulation only upon a reasoned                         will have only a minor cost savings                    this rulemaking action. Therefore, the
                                              determination that the benefits of the                  impact. Therefore, the FAA concludes                   FAA concludes the rule will have only
                                              intended regulation justify its costs.                  this final rule will result in minimal                 a minimal economic cost. This
                                              Second, the Regulatory Flexibility Act                  costs and a regulatory evaluation was                  conclusion is further bolstered by the
                                              of 1980 (Pub. L. 96–354) requires                       not prepared. This conclusion is further               fact that the FAA received no comments
                                              agencies to analyze the economic                        bolstered by the fact that the FAA                     on this minimal cost determination.
                                              impact of regulatory changes on small                   received no comments on this minimal                      If an agency determines that a
                                              entities. Third, the Trade Agreements                   cost determination.                                    rulemaking will not result in a
                                              Act (Pub. L. 96–39) prohibits agencies                     FAA has, therefore, determined that                 significant economic impact on a
                                              from setting standards that create                      this final rule is not a ‘‘significant                 substantial number of small entities, the
                                                                                                      regulatory action’’ as defined in section              head of the agency may so certify under
                                              unnecessary obstacles to the foreign
                                                                                                      3(f) of Executive Order 12866, and is not              section 605(b) of the RFA. Therefore, as
                                              commerce of the United States. In
                                                                                                      ‘‘significant’’ as defined in DOT’s                    provided in section 605(b), the head of
                                              developing U.S. standards, the Trade
                                                                                                      Regulatory Policies and Procedures.                    the FAA certifies that this rulemaking
                                              Act requires agencies to consider
                                                                                                                                                             will not result in a significant economic
                                              international standards and, where                      B. Regulatory Flexibility Determination                impact on a substantial number of small
                                              appropriate, that they be the basis of                     The Regulatory Flexibility Act of 1980              entities.
                                              U.S. standards. Fourth, the Unfunded                    (Pub. L. 96–354) (RFA) establishes ‘‘as a
                                              Mandates Reform Act of 1995 (Pub. L.                    principle of regulatory issuance that                  C. International Trade Impact
                                              104–4) requires agencies to prepare a                   agencies shall endeavor, consistent with               Assessment
                                              written assessment of the costs, benefits,              the objectives of the rule and of                         The Trade Agreements Act of 1979
                                              and other effects of proposed or final                  applicable statutes, to fit regulatory and             (Pub. L. 96–39), as amended by the
                                              rules that include a Federal mandate                    informational requirements to the scale                Uruguay Round Agreements Act (Pub.
                                              likely to result in the expenditure by                  of the businesses, organizations, and                  L. 103–465), prohibits Federal agencies
                                              State, local, or tribal governments, in the             governmental jurisdictions subject to                  from establishing standards or engaging
                                              aggregate, or by the private sector, of                 regulation.’’ To achieve this principle,               in related activities that create
                                              $100 million or more annually (adjusted                 agencies are required to solicit and                   unnecessary obstacles to the foreign
                                              for inflation with base year of 1995).                  consider flexible regulatory proposals                 commerce of the United States.
                                              This portion of the preamble                            and to explain the rationale for their                 Pursuant to these Acts, the
                                              summarizes the FAA’s analysis of the                    actions to assure that such proposals are              establishment of standards is not
                                              economic impacts of this rule.                          given serious consideration.’’ The RFA                 considered an unnecessary obstacle to
                                                 Department of Transportation Order                   covers a wide-range of small entities,                 the foreign commerce of the United
                                              DOT 2100.5 prescribes policies and                      including small businesses, not-for-                   States, so long as the standard has a
                                              procedures for simplification, analysis,                profit organizations, and small                        legitimate domestic objective, such as
                                              and review of regulations. If the                       governmental jurisdictions.                            the protection of safety, and does not
                                              expected cost impact is so minimal that                    Agencies must perform a review to                   operate in a manner that excludes
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                                              a proposed or final rule does not                       determine whether a rule will have a                   imports that meet this objective. The
                                              warrant a full evaluation, this order                   significant economic impact on a                       statute also requires consideration of
                                              permits that a statement to that effect                 substantial number of small entities. If               international standards and, where
                                              and the basis for it to be included in the              the agency determines that it will, the                appropriate, that they be the basis for
                                              preamble if a full regulatory evaluation                agency must prepare a regulatory                       U.S. standards. The FAA has assessed
                                              of the cost and benefits is not prepared.               flexibility analysis as described in the               the potential effect of this rule and
                                              Such a determination has been made for                  RFA.                                                   determined that it would impose the


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                                                               Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations                                          28533

                                              same costs on domestic and                              the Federal Government and the States,                   Copies may also be obtained by
                                              international entities and thus has a                   or on the distribution of power and                    sending a request (identified by notice,
                                              neutral trade impact.                                   responsibilities among the various                     amendment, or docket number of this
                                                                                                      levels of government, and, therefore,                  rulemaking) to the Federal Aviation
                                              D. Unfunded Mandates Assessment
                                                                                                      does not have Federalism implications.                 Administration, Office of Rulemaking,
                                                 Title II of the Unfunded Mandates                                                                           ARM–1, 800 Independence Avenue SW,
                                              Reform Act of 1995 (Pub. L. 104–4)                      B. Executive Order 13211, Regulations
                                                                                                                                                             Washington, DC 20591, or by calling
                                              requires each Federal agency to prepare                 That Significantly Affect Energy Supply,
                                                                                                                                                             (202) 267–9680.
                                              a written statement assessing the effects               Distribution, or Use
                                              of any Federal mandate in a proposed or                    The FAA analyzed this final rule                    B. Comments Submitted to the Docket
                                              final agency rule that may result in an                 under Executive Order 13211, Actions                     Comments received may be viewed by
                                              expenditure of $100 million or more (in                 Concerning Regulations that                            going to http://www.regulations.gov and
                                              1995 dollars) in any one year by State,                 Significantly Affect Energy Supply,                    following the online instructions to
                                              local, and tribal governments, in the                   Distribution, or Use (May 18, 2001). The               search the docket number for this
                                              aggregate, or by the private sector; such               agency has determined that it is not a                 action. Anyone is able to search the
                                              a mandate is deemed to be a ‘‘significant               ‘‘significant energy action’’ under the                electronic form of all comments
                                              regulatory action.’’ The FAA currently                  executive order and it is not likely to                received into any of the FAA’s dockets
                                              uses an inflation-adjusted value of $155                have a significant adverse effect on the               by the name of the individual
                                              million in lieu of $100 million.                        supply, distribution, or use of energy.                submitting the comment (or signing the
                                                 This rule does not contain such a                                                                           comment, if submitted on behalf of an
                                              mandate; therefore, the requirements of                 C. Executive Order 13771, Reducing                     association, business, labor union, etc.).
                                              Title II of the Unfunded Mandates                       Regulation and Controlling Regulatory
                                              Reform Act do not apply.                                Costs                                                  C. Small Business Regulatory
                                                                                                                                                             Enforcement Fairness Act
                                              E. Paperwork Reduction Act                                 This final rule is considered an E.O.
                                                                                                      13771 deregulatory action. The FAA                       The Small Business Regulatory
                                                The Paperwork Reduction Act of 1995                                                                          Enforcement Fairness Act (SBREFA) of
                                                                                                      expects minor cost savings that cannot
                                              (44 U.S.C. 3507(d)) requires that the                                                                          1996 requires FAA to comply with
                                                                                                      be quantified. The rule streamlines and
                                              FAA consider the impact of paperwork                                                                           small entity requests for information or
                                                                                                      improves commercial space
                                              and other information collection                                                                               advice about compliance with statutes
                                                                                                      transportation regulations’ general
                                              burdens imposed on the public. The                                                                             and regulations within its jurisdiction.
                                                                                                      rulemaking and petition procedures.
                                              FAA has determined that there is no                                                                            A small entity with questions regarding
                                                                                                      These changes should make it easier to
                                              new requirement for information                                                                                this document, may contact its local
                                                                                                      read and understand the regulations,
                                              collection associated with this final                                                                          FAA official, or the person listed under
                                                                                                      and lead to minimal cost savings that
                                              rule.                                                                                                          the FOR FURTHER INFORMATION CONTACT
                                                                                                      are not quantifiable. The rule also
                                              F. International Compatibility                          allows petitioners to file their petitions             heading at the beginning of the
                                                                                                      to the FAA’s Office of Commercial                      preamble. To find out more about
                                                In keeping with U.S. obligations
                                                                                                      Space Transportation electronically.                   SBREFA on the internet, visit http://
                                              under the Convention on International
                                                                                                      This could save minimal costs over                     www.faa.gov/regulations_policies/
                                              Civil Aviation, it is FAA policy to
                                                                                                      mailing petitions. Finally, the rule                   rulemaking/sbre_act/.
                                              conform to International Civil Aviation
                                              Organization (ICAO) Standards and                       expands the options to demonstrate an                  List of Subjects
                                              Recommended Practices to the                            equivalent level of safety. This would
                                                                                                      also reduce the number of waivers that                 14 CFR Part 11
                                              maximum extent practicable. The FAA
                                              has determined that there are no ICAO                   have to be approved. These cost savings                  Administrative practice and
                                              Standards and Recommended Practices                     are expected to be minimal and not                     procedure, Reporting and recordkeeping
                                              that correspond to these regulations.                   quantifiable, as we don’t know the effect              requirements.
                                                                                                      of having acceptance of the equivalent
                                              G. Environmental Analysis                               level of safety approach earlier in the                14 CFR Part 404
                                                 FAA Order 1050.1F identifies FAA                     process than the alternative of                          Administrative practice and
                                              actions that are categorically excluded                 requesting a waiver later in the process.              procedure, Space transportation and
                                              from preparation of an environmental                    We also don’t know how often a                         exploration.
                                              assessment or environmental impact                      petitioner will choose to demonstrate an
                                                                                                                                                             14 CFR Part 405
                                              statement under the National                            alternative level of safety as opposed to
                                              Environmental Policy Act in the                         requesting a waiver.                                      Investigations, Penalties, Space
                                              absence of extraordinary circumstances.                                                                        transportation and exploration.
                                                                                                      VI. How To Obtain Additional
                                              The FAA has determined this                             Information                                            14 CFR Part 420
                                              rulemaking action qualifies for the
                                              categorical exclusion identified in                     A. Rulemaking Documents                                   Environmental protection, Reporting
                                              paragraph 5–6.6 and involves no                                                                                and recordkeeping requirements, Space
                                                                                                        An electronic copy of a rulemaking                   transportation and exploration.
                                              extraordinary circumstances.                            document may be obtained by using the
                                              V. Executive Order Determinations                       internet—                                              14 CFR Part 431
                                                                                                        1. Search the Federal eRulemaking                       Aviation safety, Environmental
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                                              A. Executive Order 13132, Federalism                    Portal (http://www.regulations.gov);                   protection, Investigations, Reporting
                                                The FAA has analyzed this final rule                    2. Visit the FAA’s Regulations and                   and recordkeeping requirements, Space
                                              under the principles and criteria of                    Policies web page at http://                           transportation and exploration.
                                              Executive Order 13132, Federalism. The                  www.faa.gov/regulations_policies/ or
                                              agency determined that this action will                   3. Access the Government Printing                    14 CFR Part 435
                                              not have a substantial direct effect on                 Office’s web page at http://                             Aviation safety, Environmental
                                              the States, or the relationship between                 www.gpo.gov/fdsys/.                                    protection, Investigations, Reporting


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                                              28534            Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations

                                              and recordkeeping requirements, Space                   § 404.1    Scope.                                      a petition before its disposition under
                                              transportation and exploration.                            This part establishes procedures for                this section.
                                              14 CFR Part 437                                         issuing regulations and for filing a                   ■ 9. Revise § 404.5 to read as follows:
                                                                                                      petition for waiver or petition for
                                                 Aircraft, Aviation safety, Reporting                 rulemaking to the Associate                            § 404.5    Filing a petition for waiver.
                                              and recordkeeping requirements, Space                   Administrator for Commercial Space                       A petition for waiver must be
                                              transportation and exploration.                         Transportation.                                        submitted at least 60 days before the
                                                                                                      ■ 8. Amend § 404.3 by revising the
                                                                                                                                                             proposed effective date of the waiver
                                              14 CFR Part 460                                                                                                unless the petitioner shows good cause
                                                                                                      section heading and paragraphs (a)(3),
                                                 Aircraft, Aviation safety, Reporting                 (b), (c), (d), and adding new paragraphs               for later submission in the petition, and
                                              and recordkeeping requirements, Space                   (e), (f), and (g) to read as follows:                  the petition for waiver must—
                                              transportation and exploration.                                                                                  (a) Include the specific section or
                                                                                                      § 404.3    General.                                    sections of 14 CFR chapter III from
                                              The Amendments                                                                                                 which the petitioner seeks relief;
                                                                                                         (a) * * *
                                                In consideration of the foregoing, the                   (3) Waive the requirement for a                       (b) Include the extent of the relief
                                              Federal Aviation Administration                         license, except as provided in § 404.7(b).             sought and the reason the relief is being
                                              amends chapters I and III of title 14,                     (b) A petition filed under this section             sought;
                                              Code of Federal Regulations as follows:                 may request, under § 413.9 of this                       (c) Include any facts, views, and data
                                                                                                      chapter, that the Associate                            available to the petitioner to support the
                                              PART 11—GENERAL RULEMAKING                              Administrator withhold certain trade                   waiver request; and
                                              PROCEDURES                                              secrets or proprietary commercial or                     (d) Show why granting the request for
                                                                                                      financial data from public disclosure.                 relief is in the public interest and will
                                              ■ 1. The authority citation for part 11 is                                                                     not jeopardize the public health and
                                                                                                         (c) Each petitioner filing under this
                                              revised to read as follows:                                                                                    safety, safety of property, and national
                                                                                                      section must:
                                                                                                                                                             security and foreign policy interests of
                                                Authority: 49 U.S.C. 106(f), 106(g), 40101,              (1) For electronic submission, send
                                                                                                                                                             the United States.
                                              40103, 40105, 40109, 40113, 44110, 44502,               one copy of the petition by email to the
                                              44701–44702, 44711, 46102, and 51 U.S.C.                Office of Commercial Space                             ■ 10. Add § 404.7 to read as follows:
                                              50901–50923.                                            Transportation at ASTpetition@faa.gov;                 § 404.7    Action on a petition for waiver.
                                              ■   2. Revise § 11.15 to read as follows:               or
                                                                                                                                                                (a) Grant of waiver. The Associate
                                                                                                         (2) For paper submission, send one                  Administrator may grant a waiver,
                                              § 11.15   What is a petition for exemption?             copy of the petition to the Office of                  except as provided in paragraph (b) of
                                                 A petition for exemption is a request                Commercial Space Transportation,                       this section, if the Associate
                                              to the FAA by an individual or entity                   Federal Aviation Administration, 800                   Administrator determines that the
                                              asking for relief from the requirements                 Independence Avenue SW, Room 331,                      waiver is in the public interest and will
                                              of a current regulation. For petitions for              Washington, DC 20591.                                  not jeopardize public health and safety,
                                              waiver of commercial space                                 (d) Each petition filed under this                  the safety of property, or any national
                                              transportation regulations, see part 404                section must include the petitioner’s                  security or foreign policy interest of the
                                              of this title.                                          name, mailing address, telephone                       United States.
                                                                                                      number and any other contact                              (b) Waiver ineligibility. The FAA may
                                              ■ 3. Amend § 11.63 by revising                          information, such as an email address or
                                              paragraph (a)(1) to read as follows:                                                                           not grant a waiver that would permit the
                                                                                                      a fax number.                                          launch or reentry of a launch vehicle or
                                              § 11.63 How and to whom do I submit my                     (e) Notification. When the Associate                a reentry vehicle without a license or
                                              petition for rulemaking or petition for                 Administrator determines that a petition               permit if a human being will be on
                                              exemption?                                              should be granted or denied, the                       board.
                                                (a) * * *                                             Associate Administrator notifies the                      (c) Denial of waiver. If the Associate
                                                                                                      petitioner of the Associate                            Administrator determines that the
                                                (1) By electronic submission, submit
                                                                                                      Administrator’s action and the reasons                 petition does not justify granting a
                                              your petition for rulemaking or
                                                                                                      supporting the action.                                 waiver, the Associate Administrator
                                              exemption to the FAA through the
                                                                                                         (f) Reconsideration. Any person may                 denies the petition.
                                              internet at http://www.regulations.gov,
                                                                                                      petition the FAA to reconsider a denial
                                              the Federal Docket Management System                                                                           ■ 11. Add § 404.9 to read as follows:
                                                                                                      of a petition the person filed. The
                                              website. For additional instructions, you
                                                                                                      petitioner must send a request for                     § 404.9    Filing a petition for rulemaking.
                                              may visit http://www.faa.gov, and
                                                                                                      reconsideration within 60 days after                     A petition for rulemaking filed under
                                              navigate to the Rulemaking home page.
                                                                                                      being notified of the denial to the same               this part must be made in accordance
                                              *     *     *     *    *                                address to which the original petition                 with 14 CFR 11.71.
                                                                                                      was filed. For the FAA to accept the                   ■ 12. Revise § 404.11 to read as follows:
                                              PART 404—PETITION AND
                                                                                                      reconsideration request, the petitioner
                                              RULEMAKING PROCEDURES
                                                                                                      must show—                                             § 404.11 Action on a petition for
                                                                                                         (1) There is a significant additional               rulemaking.
                                              ■ 4. The authority citation for part 404
                                                                                                      fact and the reason it was not included                  The FAA will process petitions for
                                              continues to read as follows:
                                                                                                      in the original petition;                              rulemaking under this part in
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                                                  Authority: 51 U.S.C. 50901–50923.                      (2) The FAA made an important                       accordance with 14 CFR 11.73.
                                              ■ 5. The heading of part 404 is revised                 factual error in its denial of the original            ■ 13. Revise § 404.13 to read as follows:
                                              to read as set forth above.                             petition; or
                                                                                                         (3) The denial is not in accordance                 § 404.13    Rulemaking.
                                              ■ 6. Remove the headings of subparts A                  with the applicable law and regulations.                 (a) The FAA’s rulemaking procedures
                                              and B.                                                     (g) Public hearing. No public hearing,              are located in subpart A of part 11 of
                                              ■   7. Revise § 404.1 to read as follows:               argument or other proceeding is held on                this title, under the General, Written


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                                                               Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations                                                28535

                                              Comments, and Public Meetings and                       ■ 20. Amend § 420.25 by revising                       equivalent level of safety to the
                                              Other Proceedings headings.                             paragraph (a) to read as follows:                      requirement of this part.
                                                (b) In addition to the rulemaking
                                                                                                      § 420.25 Launch site location review—risk              PART 437—EXPERIMENTAL PERMITS
                                              procedures referenced in paragraph (a)
                                                                                                      analysis.
                                              of this section, the provisions of
                                              §§ 404.17 and 404.19 also apply.                          (a) If a flight corridor or impact                   ■ 25. The authority citation for part 437
                                                                                                      dispersion area defined by § 420.23                    continues to read as follows:
                                              § 404.15    [Removed and Reserved]                      contains a populated area, the applicant                   Authority: 51 U.S.C. 50901–50923.
                                              ■   14. Remove and reserve § 404.15.                    shall estimate the casualty expectation
                                                                                                      associated with the flight corridor or                 ■   26. Revise § 437.1 to read as follows:
                                              PART 405—COMPLIANCE AND                                 impact dispersion area. An applicant
                                                                                                                                                             § 437.1    Scope and organization of this
                                              ENFORCEMENT                                             shall use the methodology provided in
                                                                                                                                                             part.
                                                                                                      appendix C to this part for guided
                                              ■ 15. The authority citation for part 405               orbital or suborbital expendable launch                  (a) Scope. This part prescribes
                                              continues to read as follows:                           vehicles and appendix D for unguided                   requirements for obtaining an
                                                  Authority: 51 U.S.C. 50901–50923.                   suborbital launch vehicles.                            experimental permit. It also prescribes
                                                                                                      *     *       *    *     *                             post-permitting requirements with
                                              ■ 16. The heading of part 405 is revised                                                                       which a permittee must comply to
                                              to read as set forth above.                                                                                    maintain its permit. Part 413 of this
                                                                                                      PART 431—LAUNCH AND REENTRY
                                              PART 420—LICENSE TO OPERATE A                           OF A REUSABLE LAUNCH VEHICLE                           subchapter contains procedures for
                                              LAUNCH SITE                                             (RLV)                                                  applying for an experimental permit.
                                                                                                                                                               (b) Equivalent level of safety. Each
                                              ■ 17. The authority citation for part 420               ■ 21. The authority citation for part 431              requirement of this part applies unless
                                              continues to read as follows:                           continues to read as follows:                          the applicant or permittee clearly and
                                                  Authority: 51 U.S.C. 50901–50923.                       Authority: 51 U.S.C. 50901–50923.                  convincingly demonstrates that an
                                                                                                                                                             alternative approach provides an
                                              ■   18. Revise § 420.1 to read as follows:              ■   22. Revise § 431.1 to read as follows:
                                                                                                                                                             equivalent level of safety to the
                                              § 420.1    General.                                     § 431.1    General.                                    requirement of this part.
                                                 (a) Scope. This part prescribes the                     (a) Scope. This part prescribes                        (c) Organization of this part. Subpart
                                              information and demonstrations that                     requirements for obtaining a reusable                  A contains general information about an
                                              must be provided to the FAA as part of                  launch vehicle (RLV) mission license                   experimental permit. Subpart B contains
                                              a license application, the bases for                    and post-licensing requirements with                   requirements to obtain an experimental
                                              license approval, license terms and                     which a licensee must comply to remain                 permit. Subpart C contains the safety
                                              conditions, and post-licensing                          licensed. Requirements for preparing a                 requirements with which a permittee
                                              requirements with which a licensee                      license application are contained in part              must comply while conducting
                                              shall comply to remain licensed.                        413 of this subchapter.                                permitted activities. Subpart D contains
                                              Requirements for preparing a license                       (b) Equivalent level of safety. Each                terms and conditions of an experimental
                                              application are contained in part 413 of                requirement of this part applies unless                permit.
                                              this subchapter.                                        the applicant or licensee clearly and                  ■ 27. Amend § 437.65 by revising
                                                 (b) Equivalent level of safety. Each                 convincingly demonstrates that an                      paragraph (b) to read as follows:
                                              requirement of this part applies unless                 alternative approach provides an
                                              the applicant or licensee clearly and                   equivalent level of safety to the                      § 437.65    Collision avoidance analysis.
                                              convincingly demonstrates that an                       requirement of this part.                              *     *     *    *    *
                                              alternative approach provides an                                                                                 (b) The collision avoidance analysis
                                              equivalent level of safety to the                       PART 435—REENTRY OF A REENTRY
                                                                                                                                                             must establish each period during
                                              requirement of this part.                               VEHICLE OTHER THAN A REUSABLE
                                                                                                                                                             which a permittee may not initiate flight
                                              ■ 19. Amend § 420.23 by revising
                                                                                                      LAUNCH VEHICLE (RLV)
                                                                                                                                                             to ensure that a permitted vehicle and
                                              paragraphs (a)(3), (b)(4), and (c)(2), and              ■ 23. The authority citation for part 435              any jettisoned components do not pass
                                              removing paragraph (c)(3) to read as                    continues to read as follows:                          closer than 200 kilometers to a manned
                                              follows:                                                                                                       or mannable orbital object.
                                                                                                          Authority: 51 U.S.C. 50901–50923.
                                              § 420.23 Launch site location review—                                                                          PART 460—HUMAN SPACE FLIGHT
                                              flight corridor.
                                                                                                      ■   24. Revise § 435.1 to read as follows:
                                                                                                                                                             REQUIREMENTS
                                                (a) * * *                                             § 435.1    General.
                                                (3) Uses one of the methodologies                        (a) Scope. This part prescribes                     ■ 28. The authority citation for part 460
                                              provided in appendix A or B of this                     requirements for obtaining a license to                continues to read as follows:
                                              part.                                                   reenter a reentry vehicle other than a                     Authority: 51 U.S.C. 50901–50923.
                                                (b) * * *                                             reusable launch vehicle (RLV), and
                                                (4) Uses one of the methodologies                     postlicensing requirements with which                  ■ 29. Amend § 460.5 by revising
                                              provided in appendix A or B to this                     a licensee must comply to remain                       paragraph (d) to read as follows:
                                              part.                                                   licensed. Requirements for preparing a                 § 460.5    Crew qualifications and training.
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                                                (c) * * *                                             license application are contained in part
                                                (2) An applicant shall base its analysis              413 of this subchapter.                                *     *     *     *    *
                                              on an unguided suborbital launch                           (b) Equivalent level of safety. Each                  (d) A pilot or a remote operator may
                                              vehicle whose final launch vehicle stage                requirement of this part applies unless                demonstrate an equivalent level of
                                              apogee represents the intended use of                   the applicant or licensee clearly and                  safety to paragraph (c)(1) of this section
                                              the launch point.                                       convincingly demonstrates that an                      through the license or permit process.
                                              *     *    *     *    *                                 alternative approach provides an                       *     *     *     *    *


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                                              28536            Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Rules and Regulations

                                                Issued in Washington, DC, on June 6, 2018.            and 5 p.m., Monday through Friday,                     received on the NPRM and the FAA’s
                                              Daniel K. Elwell,                                       except Federal holidays. The AD docket                 response to each comment.
                                              Acting Administrator.                                   contains this AD, the regulatory
                                                                                                                                                             Request To Match Compliance Time in
                                              [FR Doc. 2018–13177 Filed 6–19–18; 8:45 am]             evaluation, any comments received, and
                                                                                                                                                             the Service Information
                                              BILLING CODE 4910–13–P
                                                                                                      other information. The street address for
                                                                                                      the Docket Office (telephone 800–647–                     Bombardier noted that the compliance
                                                                                                      5527) is Docket Management Facility,                   time in paragraph (g) of the proposed
                                              DEPARTMENT OF TRANSPORTATION                            U.S. Department of Transportation,                     AD was ‘‘Within 36 months after the
                                                                                                      Docket Operations, M–30, West                          effective date of this AD,’’ whereas
                                              Federal Aviation Administration                         Building Ground Floor, Room W12–140,                   Bombardier Service Bulletin 100–35–08,
                                                                                                      1200 New Jersey Avenue SE,                             dated April 11, 2017, includes a
                                              14 CFR Part 39                                          Washington, DC 20590.                                  compliance time of within ‘‘36 months
                                                                                                      FOR FURTHER INFORMATION CONTACT:                       from this Service Bulletin release date
                                              [Docket No. FAA–2017–1247; Product
                                                                                                      Cesar Gomez, Aerospace Engineer,                       (Basic Issue)’’. We infer that the
                                              Identifier 2017–NM–085–AD; Amendment
                                              39–19316; AD 2018–13–04]                                Airframe and Mechanical Systems                        commenter is requesting that the
                                                                                                      Section, FAA, New York ACO Branch,                     compliance time in paragraph (g) of the
                                              RIN 2120–AA64                                           1600 Stewart Avenue, Suite 410,                        proposed AD be changed to match what
                                                                                                      Westbury, NY 11590; telephone 516–                     is in the service information.
                                              Airworthiness Directives; Bombardier,                                                                             We do not agree with the commenter’s
                                                                                                      228–7318; fax 516–794–5531.
                                              Inc., Airplanes                                                                                                request. In developing an appropriate
                                                                                                      SUPPLEMENTARY INFORMATION:
                                              AGENCY:  Federal Aviation                                                                                      compliance time for this AD, we
                                              Administration (FAA), Department of                     Discussion                                             considered the degree of urgency
                                              Transportation (DOT).                                      We issued a notice of proposed                      associated with addressing the unsafe
                                              ACTION: Final rule.                                     rulemaking (NPRM) to amend 14 CFR                      condition and the manufacturer’s
                                                                                                      part 39 by adding an AD that would                     recommendation for an appropriate
                                              SUMMARY:   We are adopting a new                        apply to certain Bombardier, Inc., Model               compliance time, as well as the time
                                              airworthiness directive (AD) for certain                BD–100–1A10 airplanes. The NPRM                        required for the rulemaking process. In
                                              Bombardier, Inc., Model BD–100–1A10                     published in the Federal Register on                   consideration of these factors, we find
                                              airplanes. This AD was prompted by a                    January 17, 2018 (83 FR 2373) (‘‘the                   that the compliance time, as proposed,
                                              report indicating that certain lanyards                 NPRM’’). The NPRM was prompted by                      represents an appropriate interval in
                                              for the passenger oxygen masks located                  a report indicating that certain lanyards              which to replace the affected oxygen
                                              in the airplane’s entry area are too long.              for the passenger oxygen masks located                 mask lanyards, while still maintaining
                                              This AD requires replacement of certain                 in the airplane’s entry area are too long.             an adequate level of safety. Operators
                                              oxygen mask lanyards with shorter                       The NPRM proposed to require                           are always permitted to accomplish the
                                              lanyards. We are issuing this AD to                     replacement of certain oxygen mask                     requirements of an AD at a time earlier
                                              address the unsafe condition on these                   lanyards with shorter lanyards. We are                 than the specified compliance time. We
                                              products.                                               issuing this AD to detect and correct                  have not changed this AD regarding this
                                                                                                      lanyards that are too long, which might                issue.
                                              DATES:  This AD is effective July 25,
                                              2018.                                                   result in difficulties starting the flow of            Request To Correct Typographical
                                                 The Director of the Federal Register                 oxygen in an emergency.                                Error
                                              approved the incorporation by reference                    Transport Canada Civil Aviation
                                                                                                      (TCCA), which is the aviation authority                  Bombardier requested that a part
                                              of a certain publication listed in this AD                                                                     number in paragraph (g) of the proposed
                                              as of July 25, 2018.                                    for Canada, has issued Canadian AD
                                                                                                      CF–2017–22, dated June 23, 2017                        AD be corrected. Paragraph (g) of the
                                              ADDRESSES: For service information                                                                             proposed AD specified the replacement
                                                                                                      (referred to after this as the Mandatory
                                              identified in this final rule, contact                  Continuing Airworthiness Information,                  of lanyards having a certain part number
                                              Bombardier, Inc., 400 Côte-Vertu Road                  or ‘‘the MCAI’’), to correct an unsafe                 with new lanyards having part number
                                              West, Dorval, Québec H4S 1Y9, Canada;                  condition for certain Bombardier, Inc.,                P/N 289–65–10. The correct part
                                              telephone: 514–855–5000; fax: 514–                      Model BD–100–1A10 airplanes. The                       number for the new lanyards is P/N
                                              855–7401; email: thd.crj@                               MCAI states:                                           289–165–10.
                                              aero.bombardier.com; internet: http://                                                                           We agree with the commenter’s
                                              www.bombardier.com. You may view                          Bombardier, Inc., has discovered that the
                                                                                                                                                             request and have revised paragraph (g)
                                                                                                      entry area passenger oxygen mask lanyards
                                              this referenced service information at                                                                         of this AD to include the correct part
                                                                                                      are too long. Upon deployment during an
                                              the FAA, Transport Standards Branch,                    emergency, this may result in difficulties to          number for the new lanyards, P/N 289–
                                              2200 South 216th St., Des Moines, WA.                   start the oxygen flow for tall individuals.            165–10, which is specified in
                                              For information on the availability of                  This [Canadian] AD mandates the                        Bombardier Service Bulletin 100–35–08,
                                              this material at the FAA, call 206–231–                 replacement of the existing entry area                 dated April 11, 2017.
                                              3195. It is also available on the internet              passenger oxygen mask lanyards with shorter
                                              at http://www.regulations.gov by                        ones for proper operation.                             Conclusion
                                              searching for and locating Docket No.                   You may examine the MCAI in the AD                       We reviewed the relevant data,
                                              FAA–2017–1247.                                          docket on the internet at http://                      considered the comments received, and
                                                                                                      www.regulations.gov by searching for                   determined that air safety and the
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                                              Examining the AD Docket                                                                                        public interest require adopting this AD
                                                                                                      and locating Docket No. FAA–2017–
                                                You may examine the AD docket on                      1247.                                                  with the changes described previously
                                              the internet at http://                                                                                        and minor editorial changes. We have
                                              www.regulations.gov by searching for                    Comments                                               determined that these minor changes:
                                              and locating Docket No. FAA–2017–                         We gave the public the opportunity to                  • Are consistent with the intent that
                                              1247; or in person at the Docket                        participate in developing this AD. The                 was proposed in the NPRM for
                                              Management Facility between 9 a.m.                      following presents the comments                        correcting the unsafe condition; and


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Document Created: 2018-06-20 00:19:32
Document Modified: 2018-06-20 00:19:32
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective August 20, 2018.
ContactFor questions concerning this action, contact Joshua Easterson, AST-300, Office of Commercial Space Transportation, Federal Aviation Administration, 800 Independence Avenue SW, Washington, DC 20591; telephone (202) 267-5150; email [email protected]
FR Citation83 FR 28528 
RIN Number2120-AK76
CFR Citation14 CFR 11
14 CFR 404
14 CFR 405
14 CFR 420
14 CFR 431
14 CFR 435
14 CFR 437
14 CFR 460
CFR AssociatedAdministrative Practice and Procedure; Reporting and Recordkeeping Requirements; Space Transportation and Exploration; Investigations; Penalties; Environmental Protection; Aviation Safety and Aircraft

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