Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Rules and Regulations 36493

Authority for This Rulemaking (a) Effective Date (2) Before using any approved AMOC, notify your appropriate principal inspector, Title 49 of the United States Code This airworthiness directive (AD) is effective July 27, 2021. or lacking a principal inspector, the manager specifies the FAA’s authority to issue of the local flight standards district office/ rules on aviation safety. Subtitle I, (b) Affected ADs certificate holding district office. section 106, describes the authority of None. the FAA Administrator. Subtitle VII: (k) Related Information Aviation Programs describes in more (c) Applicability For more information about this AD, detail the scope of the Agency’s This AD applies to True Flight Holdings contact Fred Caplan, Aviation Safety authority. LLC Models AA–1, AA–1A, AA–1B, AA–1C, Engineer, Atlanta ACO Branch, FAA, 1701 The FAA is issuing this rulemaking and AA–5 airplanes, all serial numbers, Columbia Avenue, College Park, GA 30337; certificated in any category. phone: (404) 474–5507; fax: (404) 474–5606; under the authority described in email: [email protected]. Subtitle VII, Part A, Subpart III, Section (d) Subject (l) Material Incorporated by Reference 44701: General requirements. Under Joint Aircraft System Component (JASC) that section, Congress charges the FAA Code: 5512, Horizontal Stabilizer, Plate/Skin; (1) The Director of the Federal Register with promoting safe flight of civil 5522, Elevator, Plates/Skin Structure. approved the incorporation by reference aircraft in air commerce by prescribing (IBR) of the service information listed in this regulations for practices, methods, and (e) Unsafe Condition paragraph under 5 U.S.C. 552(a) and 1 CFR procedures the Administrator finds This AD was prompted by corrosion and part 51. (2) You must use this service information necessary for safety in air commerce. delamination of the horizontal stabilizer bondlines. The FAA is issuing this AD to as applicable to do the actions required by This regulation is within the scope of this AD, unless the AD specifies otherwise. that authority because it addresses an detect and address cracks, buckles, corrosion, delamination, rust, and previous repair of the (i) True Flight Aerospace Service Bulletin unsafe condition that is likely to exist or horizontal stabilizers. The unsafe condition, SB–195, Revision A, dated June 1, 2021. develop on products identified in this if not addressed, could result in reduced (ii) [Reserved] rulemaking action. structural integrity with consequent loss of (3) For True Flight Aerospace service control of the airplane. information identified in this AD, contact Regulatory Findings True Flight Holdings LLC, 2300 Madison This AD will not have federalism (f) Compliance Highway, Valdosta, GA 31601; phone: (229) implications under Executive Order Comply with this AD within the 242–6337; email: info@ 13132. This AD will not have a compliance times specified, unless already trueflightaerospace.com. done. (4) You may view this service information substantial direct effect on the States, on at the FAA, Policy and Innovation Division, the relationship between the national (g) Inspection of Bondlines of the Horizontal 901 Locust, Kansas City, MO 64106. For government and the States, or on the Stabilizers information on the availability of this distribution of power and Within the next 25 hours time-in-service or material at the FAA, call (816) 329–4148. responsibilities among the various at the next scheduled 100 hour or annual (5) You may view this service information levels of government. inspection after the effective date of this AD, that is incorporated by reference at the For the reasons discussed above, I whichever occurs first, inspect the horizontal National Archives and Records certify that this AD: stabilizers, paying particular attention to the Administration (NARA). For information on (1) Is not a ‘‘significant regulatory bondlines, for cracks, buckles, corrosion, the availability of this material at NARA, action’’ under Executive Order 12866, delamination, rust, and previous repair in email: [email protected], or go to: accordance with paragraphs 1. and 3. of Part https://www.archives.gov/federal-register/cfr/ and ibr-locations.html. (2) Will not affect intrastate aviation B of True Flight Aerospace Service Bulletin in Alaska. SB–195, Revision A, dated June 1, 2021 (True Issued on June 25, 2021. Flight SB–195, Revision A). If there is any Lance T. Gant, List of Subjects in 14 CFR Part 39 crack, buckle, corrosion, delamination, rust, Director, Compliance & Airworthiness Air transportation, Aircraft, Aviation or previous repair, before further flight, repair or replace the affected part in Division, Aircraft Certification Service. safety, Incorporation by reference, accordance with paragraphs 1.c. and 2. [FR Doc. 2021–14687 Filed 7–9–21; 8:45 am] Safety. through 4. of True Flight SB–195, Revision A, BILLING CODE 4910–13–P The Amendment as applicable. (h) No Reporting Requirement Accordingly, under the authority DEPARTMENT OF TRANSPORTATION delegated to me by the Administrator, True Flight SB–195, Revision A specifies the FAA amends 14 CFR part 39 as notifying True Flight Holdings LLC of Federal Aviation Administration follows: compliance with the service bulletin; however, this AD does not contain that 14 CFR Parts 61 and 141 PART 39—AIRWORTHINESS requirement. [Docket No.: FAA–2021–0592] DIRECTIVES (i) Special Flight Permit ■ 1. The authority citation for part 39 A special flight permit is prohibited. Notification of Policy for Flight continues to read as follows: (j) Alternative Methods of Compliance Training in Certain Aircraft (AMOCs) Authority: 49 U.S.C. 106(g), 40113, 44701. AGENCY: Federal Aviation (1) The Manager, Atlanta ACO Branch, Administration (FAA), Department of § 39.13 [Amended] FAA, has the authority to approve AMOCs Transportation (DOT). ■ for this AD, if requested using the procedures 2. The FAA amends § 39.13 by adding ACTION: Notification of policy. the following new airworthiness found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your SUMMARY directive: principal inspector or local Flight Standards : This notification provides 2021–14–12 True Flight Holdings LLC: District Office, as appropriate. If sending clarification on flight training for Amendment 39–21639; Docket No. information directly to the manager of the compensation in certain aircraft that FAA–2021–0541; Project Identifier AD– certification office, send it to the attention of hold special airworthiness certificates 2021–00453–A. the person identified in Related Information. including limited category,

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experimental category, and primary a statement explaining the impact of the legal interpretation 3 and restated in the category aircraft. It also provides decision and providing clarification Warbirds case is that a flight instructor guidance on how flight training for regarding flight training in general and who is operating (i.e. ‘‘using’’) a limited compensation can be accomplished in flight training for compensation in category aircraft that is carrying a these aircraft in compliance with certain aircraft that hold special person (e.g. the person receiving regulations and establishes a process for airworthiness certificates.2 The FAA is instruction) for compensation (e.g. owners of experimental aircraft to issuing this notification in response to monetary payment) is acting contrary to obtain a letter of deviation authority to the request from industry. the regulation.4 receive and provide compensation for The regulations governing other II. FAA Regulations and Guidance flight training in their experimental categories of aircraft (experimental aircraft. A. Pilot Requirements and Operating aircraft in § 91.319 and primary category aircraft in § 91.325) include the same DATES: Requirements The policy described herein is language as the prohibition in § 91.315. effective July 12, 2021. The requirements for a person The prohibitions in §§ 91.319 and FOR FURTHER INFORMATION CONTACT: For exercising the privileges of a pilot 91.325 that mirror the language in technical questions concerning this certificate or a flight instructor § 91.315 must be read to have the same policy notification, contact Erin Cappel certificate are generally contained in 14 meaning.5 As such, a flight instructor for information about Letters of CFR part 61. These regulations govern providing flight training in one of these Deviation Authority and Thomas (TJ) what is required to ‘‘act as pilot in categories of aircraft for compensation is Leahy for information about exemption, command,’’ ‘‘serve as a required acting contrary to the regulations absent General Aviation and Commercial flightcrew member,’’ or ‘‘conduct flight a letter of deviation authority (LODA), if Division, General Aviation Operations training in an aircraft.’’ The regulations applicable, or exemption. Branch, (202) 267–1100, or email 9-AFS- in 14 CFR part 91 by contrast contain [email protected], 800 operating requirements that govern how B. FAA Guidance on Flight Training for Independence Ave. SW, Washington, the aircraft itself may be operated. The Compensation in Experimental Aircraft DC 20591. term ‘‘operate’’ is broadly defined in 14 FAA Order 8900.1 contains guidance SUPPLEMENTARY INFORMATION: CFR 1.1 as ‘‘use, cause to use or for FAA inspectors that indicates that authorize to use aircraft, for the purpose flight training in an experimental I. Background (except as provided in § 91.13 of this aircraft for compensation is permissible On April 2, 2021, the United States chapter) of air navigation including the without a LODA under certain Court of Appeals for the District of piloting of aircraft, with or without the circumstances.6 The guidance states that Columbia Circuit dismissed a petition right of legal control (as owner, lessee, flight instructors may receive for review of the FAA’s emergency cease or otherwise).’’ As such, the compensation for providing flight and desist order against Warbird determination of whether someone is training in an experimental aircraft but Adventures, Inc. and Thom Richard operating an aircraft is not contingent may not receive compensation for the (hereinafter ‘‘Warbirds’’), ordering that on ownership, flightcrew status, or the use of the aircraft in which they provide they cease and desist from operating receipt of payment for the use of the that flight training unless they obtain a their limited category aircraft in aircraft. LODA issued under § 91.319(h). violation of § 91.315 of title 14 of the Although a person may hold the Likewise, the guidance states that Code of Federal Regulations (14 CFR). In appropriate privileges ‘‘to act as pilot in owners of experimental aircraft may this case, Warbirds maintained a command’’ or ‘‘conduct flight training’’ receive and provide compensation for publicly available website that under part 61, the regulations in part 91 flight training in their aircraft without a advertised opportunities to fly in may restrict the exercise of those LODA, but owners may not receive Warbirds’ limited category aircraft at privileges in a particular category of compensation for the use of their upcoming airshows and allowed aircraft under certain conditions, such aircraft for flight training except in members of the public to book flights in as operations conducted for 3 FAA Legal Interpretation to Gregory Morris exchange for substantial amounts of compensation or hire. As defined, the (October 7, 2014). The Morris Interpretation money. Section 91.315 states that no term ‘‘operate’’ has broader meaning concluded, inter alia, that § 91.315 ‘‘does not set person may operate a limited category than the general terms used in part 61 forth any exceptions for providing flight training for aircraft carrying persons or property for that address ‘‘acting as pilot in hire in a limited category aircraft’’ and that ‘‘the only way to provide such training is pursuant to an compensation or hire. command’’ or ‘‘exercising the exemption from this section of the regulations’’ Before the Court, Warbirds argued privileges’’ of a particular pilot following the procedures of 14 CFR part 11. that it was conducting flight training for certificate. A person may be considered 4 Given the broad definition of ‘‘operate’’ in § 1.1, compensation in its limited category to ‘‘operate’’ an aircraft under the § 1.1 both the owner of a limited category aircraft seeking aircraft, which it claimed is not definition without serving as a required flight training and the flight instructor providing 1 the training are considered to be operating the prohibited under § 91.315. The FAA flightcrew member or manipulating the aircraft. The FAA notes that the term ‘‘operate’’ has responded that, under the plain controls of the aircraft. a different meaning from the term ‘‘operational language of § 91.315, flight training for As noted, under § 91.315, no person control,’’ which is defined in § 1.1 as ‘‘the exercise compensation constitutes operating a of authority over initiating, conducting or may operate a limited category aircraft terminating a flight.’’ limited category aircraft carrying a carrying persons or property for 5 Consistent with the position for limited category person for compensation or hire and, compensation or hire. Based on the aircraft, FAA Order 8900.1 addresses the therefore, is a violation of the plain language of the regulation, the prohibition against the operation of an experimental regulation. After the Court dismissed aircraft to carry persons or property for FAA’s position as represented in a 2014 compensation or hire. It acknowledges that the the petition for review, several industry restriction ‘‘prohibits the widespread use of groups requested that the FAA publish 2 On April 19, 2021, AOPA, EAA, and GAMA experimental aircraft for flight training for sent a joint letter to Ali Bahrami, then Associate compensation or hire.’’ FAA Order 8900.1, Vol. 3, 1 The FAA has not conceded that the flights being Administrator for Aviation Safety. A copy of this Chpt. 11, sec. 1, para. 3–293. operated by Warbirds were for the purpose of flight letter and the response has been placed in the 6 FAA Order 8900.1, Vol. 3, Chpt. 11, sec. 1, para. training. docket for this notification. 3–292.

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accordance with a LODA issued under the deviation requested. The FAA experimental aircraft. These LODAs will § 91.319(h).7 generally limits LODAs to training that prohibit owners and flight instructors The distinction set forth in FAA can only be accomplished in aircraft from receiving compensation for any Order 8900.1 is inconsistent with the with experimental certificates and other use of the aircraft in which the definition of ‘‘operate’’ in § 1.1 and the directs its inspectors that, with a few flight training is provided. plain language of § 91.319. Where a exceptions, LODAs should not be issued To obtain a LODA, owners of regulation and guidance conflict, the to permit flight training in experimental experimental aircraft and flight regulation controls.8 Accordingly, aircraft leading toward the issuance of a instructors providing flight training in owners of experimental aircraft and pilot certificate, rating, or operating experimental aircraft may submit a flight instructors who have operated privilege. request to the following email address: experimental aircraft for the purpose of As discussed, FAA guidance [email protected]. Applicants compensated flight training without incorrectly indicates that no LODA is seeking a LODA through this process obtaining a LODA (as allowed by FAA necessary if the owner of an must provide the following information: guidance) will be required to obtain a experimental aircraft provides • Name LODA to remain compliant with the compensation for flight training in the • Address regulations. owner’s own aircraft and no • Email address compensation is provided for the use of III. Process for Compliance • Pilot Certificate Number the aircraft itself. The FAA will update • Flight instructor certificate number (if The FAA acknowledges that the the guidance to align with the applying as a Certificated Flight disconnect between the regulations and regulation, as previously discussed. To Instructor (CFI)) the guidance to inspectors has created mitigate disruption for this type of flight • Aircraft Registration Number (if confusion in industry. The FAA also training, which has been allowed under applying as an owner) recognizes the value of specialized flight FAA guidance and is viewed as an • Aircraft make/model in which you training in aircraft that hold special increased safety measure for pilots who will receive or provide instruction airworthiness certificates under certain regularly fly these aircraft, the FAA has • Aircraft home base airport (if applying conditions. This section provides developed an interim process to issue as an owner) guidance to owners of affected aircraft LODAs to the owners of experimental and flight instructors seeking to conduct aircraft and flight instructors that will The FAA will review the information flight training for compensation in these permit flight training for compensation submitted and issue a LODA (via email) aircraft. in experimental aircraft when no that reflects the conditions and compensation is provided for the use of limitations contained in this A. Experimental Category Aircraft the aircraft. notification, as well any additional In general, the FAA places limitations The FAA finds that, for owners of limitations required in accordance with on the use of aircraft that hold experimental aircraft seeking flight § 91.319(h) and (i). experimental airworthiness certificates training in the aircraft they will Individuals seeking to provide flight because the airworthiness certification regularly fly in the national airspace, the training and receive compensation for requirements for these aircraft impose standard under § 91.319(h)(2) for both the flight training and the use of no standard and pose unique granting a LODA has been met. The the aircraft must continue to apply for operational risk to the national airspace FAA has long emphasized the LODAs through their local FSDOs. system. FAA regulations and guidance importance of pilots being trained and B. Limited Category and Primary direct that, for most training, pilots checked in the aircraft they will operate. Category Aircraft should use a standard category aircraft Specifically, it is critical that pilots to accomplish training rather than understand and are familiar with the Section 91.315 does not permit an aircraft that hold special airworthiness particular systems, procedures, individual to obtain deviation authority certificates. operating characteristics, and to conduct flight training for Section 91.319(h), however, permits a limitations of the aircraft they will compensation or hire in a limited person to apply for deviation authority operate. This flight training is distinct category aircraft. Therefore, as to conduct flight training in an from a situation where an aircraft with explained in the 2014 legal experimental aircraft. Currently, a special airworthiness certificate is interpretation, the only way to provide individuals seeking to provide flight ‘‘held out’’ broadly for training to flight training for compensation in a training and receive compensation for individuals who pay for both the flight limited category aircraft is pursuant to both the flight training and the use of training and the use of an aircraft that an exemption from the regulation. the experimental aircraft must submit they will not have further access to Because there is no deviation authority an application package to the Flight upon completion of LODA training. It is in § 91.325 for primary category aircraft, Standards District Office (FSDO) in the also distinct from flight training that can the owners of these aircraft and flight district in which the training will take be accomplished effectively and safely instructors seeking to conduct flight place. Under § 91.319(h)(2), a request for in a standard category aircraft. training for compensation must likewise deviation authority must contain a The FAA will accept requests for a obtain an exemption from the complete description of the proposed LODA electronically from an owner of regulation. operation and justification that an experimental aircraft or flight As with the process for issuing establishes a level of safety equivalent to instructor who chooses to conduct LODAs to owners and flight instructors, that provided under the regulations for training in experimental aircraft. the FAA will consider adopting a fast- LODAs, once issued, will define the track exemption process for owners of 7 Although there is no written guidance for scope of the flight training activity so limited category and primary category limited category and primary category aircraft, the that owners of experimental aircraft may aircraft seeking to conduct flight FAA has applied the same approach to flight receive and provide compensation for training for compensation in these training for compensation in limited category and primary category aircraft. flight training in their aircraft, as well as aircraft. As with experimental category 8 The FAA will revise the guidance in the 8900.1 permit flight instructors to receive aircraft, the FAA will consider granting to reflect the requirements in the regulation. compensation for flight training in an relief for flight training operations when

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compensation is provided solely for the under forty-three entries to the Entity Committee (ERC) to be ‘military end flight training and not the use of the List. These thirty-four entities have been users’ pursuant to § 744.21 of the EAR. aircraft. determined by the U.S. Government to That section imposes additional license The FAA notes that any operator of a be acting contrary to the foreign policy requirements on, and limits the limited category aircraft that holds an interests of the United States and will be availability of, most license exceptions exemption to conduct Living History of listed on the Entity List under the for, exports, reexports, and transfers (in- Flight (LHFE) operations already holds destinations of Canada; People’s country) to listed entities on the MEU the necessary exemption relief to Republic of China (China); Iran; List, as specified in supplement no. 7 to conduct flight training for its flightcrew Lebanon; Netherlands (The part 744 and § 744.21 of the EAR. members. LHFE exemptions grant relief Netherlands); Pakistan; Russia; Entities may be listed on the MEU List Singapore; South Korea; Taiwan; to the extent necessary to allow the under the destinations of Burma, China, exemption holder to operate certain Turkey; the United Arab Emirates Russia, or Venezuela. The license aircraft for the purpose of carrying (UAE); and the United Kingdom. This review policy for each listed entity is persons for compensation or hire for final rule also revises one entry on the identified in the introductory text of living history flight experiences. As a Entity List under the destination of condition of these exemptions, the China. This final rule also removes one supplement no. 7 to part 744 and in operators must provide regular flight entry from the Entity List under the § 744.21(b) and (e). The MEU List training and checking to flightcrew destination of Germany. This final rule includes introductory text, which members. As such, these flight training removes one entity from the Unverified specifies the scope of the license operations are considered necessary for List, as a conforming change to this requirements, limitations on the use of the operator to conduct the LHFE flights same entity being added to the Entity EAR license exceptions, and the license themselves.9 The FAA will clarify this List. In addition, this final rule amends review policy that applies to the relief when operators apply for renewal the EAR by adding one entity to the entities. These requirements are also of their LHFE exemptions. Military End-User (MEU) List under the reflected in § 744.21, but for ease of For the safety reasons set forth in this destination of Russia. reference, these are also included in the notification, the FAA is considering a DATES: This rule is effective July 12, introductory text of the supplement. rulemaking that would enable the flight 2021. The Unverified List, found in training activity discussed in this FOR FURTHER INFORMATION CONTACT: supplement no. 6 to part 744 of the notification without the need to obtain Chair, End-User Review Committee, EAR, contains the names and addresses an exemption or LODA from the FAA. Office of the Assistant Secretary for of foreign persons who are or have been Issued in Washington, DC. Export Administration, Bureau of parties to a transaction, as such parties Ricardo Domingo, Industry and Security, Department of are described in § 748.5 of the EAR, Executive Director, Flight Standards Service, Commerce, Phone: (202) 482–5991, involving the export, reexport, or AFX–1. Email: [email protected]. transfer (in-country) of items subject to [FR Doc. 2021–14765 Filed 7–8–21; 8:45 am] SUPPLEMENTARY INFORMATION: the EAR, and whose bona fides BIS has BILLING CODE 4910–13–P Background been unable to verify through an end- use check. BIS may add persons to the The Entity List (supplement no. 4 to Unverified List when BIS or federal part 744 of the EAR) identifies entities DEPARTMENT OF COMMERCE officials acting on BIS’s behalf have for which there is reasonable cause to been unable to verify a foreign person’s Bureau of Industry and Security believe, based on specific and articulable facts, that the entities have bona fides because an end-use check, such as a pre-license check or a post- 15 CFR Part 744 been involved, are involved, or pose a significant risk of being or becoming shipment verification, cannot be [Docket No. 210702–0143] involved in activities contrary to the completed satisfactorily for reasons RIN 0694–AI57 national security or foreign policy outside the U.S. Government’s control. interests of the United States. The EAR The ERC, composed of representatives Addition of Certain Entities to the (15 CFR parts 730–774) impose of the Departments of Commerce Entity List; Revision of Existing Entry additional license requirements on, and (Chair), State, Defense, Energy and, on the Entity List; Removal of Entity limit the availability of most license where appropriate, the Treasury, makes From the Unverified List; and Addition exceptions for, exports, reexports, and all decisions regarding additions to, of Entity to the Military End-User (MEU) transfers (in-country) to listed entities. removals from, or other modifications to List The license review policy for each listed the Entity List and MEU List. The ERC entity is identified in the ‘‘License AGENCY: Bureau of Industry and makes all decisions to add an entry to Review Policy’’ column on the Entity Security, Commerce. the Entity List and MEU List by majority List, and the impact on the availability vote and makes all decisions to remove ACTION: Final rule. of license exceptions is described in the or modify an entry by unanimous vote. relevant Federal Register document SUMMARY: This final rule amends the In addition, when an entity listed on the adding entities to the Entity List. BIS Export Administration Regulations Unverified List is being added to the (EAR) by adding thirty-four entities places entities on the Entity List pursuant to part 744 (Control Policy: Entity List based on a majority vote of End-User and End-Use Based) and part the ERC, the ERC’s determination to add 9 The FAA cautions, however, that LHFE that entity to the Entity List constitutes exemptions do not permit operators to allow 746 (Embargoes and Other Special passengers on LHFE flights to manipulate the Controls) of the EAR. interagency approval for a conforming controls of the aircraft under the guise of flight The ‘Military End-User’ (MEU) List change to remove the same entity from training. The flight training relief extends only to the Unverified List in supplement no. 6 the LHFE operator’s own flightcrew members for (supplement no. 7 to part 744 of the the purpose of training those individuals to conduct EAR) identifies entities that have been to part 744 of the EAR. LHFE flights. determined by the End-User Review

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