Aeronautical Information Manual (AIM), page 273
11/10/16 12/10/15 AIM Transponder Failure Pilot will: Controller will: SContact ATC and request authority to continue SConsider request to continue to operate at to operate at cleared flight level cleared flight level SComply with revised ATC clearance, if issued SIssue revised clearance, if necessary NOTE- 14 CFR Section 91.215 (ATC transponder and altitude reporting equipment and use) regulates operation with the transponder inoperative. 4-6-10. Procedures for Accommodation of b. Categories of Non-RVSM Aircraft that may Non-RVSM Aircraft be Accommodated a. General Policies for Accommodation of Subject to FAA approval and clearance, the following Non-RVSM Aircraft categories of non-RVSM aircraft may operate in 1. The RVSM mandate calls for only RVSM domestic U.S. RVSM airspace provided they have an authorized aircraft/operators to fly in designated operational transponder. RVSM airspace with limited exceptions. The policies 1. Department of Defense (DOD) aircraft. detailed below are intended exclusively for use by aircraft that the FAA has agreed to accommodate. 2. Flights conducted for aircraft certification They are not intended to provide other operators a and development purposes. means to circumvent the normal RVSM approval 3. Active air ambulance flights utilizing a process. "MEDEVAC" call sign. 2. If either the operator or aircraft or both have 4. Aircraft climbing/descending through not been authorized to conduct RVSM operations, the RVSM flight levels (without intermediate level off) aircraft will be referred to as a "non-RVSM" aircraft. to/from FLs above RVSM airspace (Policies for these 14 CFR Section 91.180 and Part 91 Appendix G flights are detailed in Paragraph 4-6-11, Non-RVSM enable the FAA to authorize a deviation to operate a Aircraft Requesting Climb to and Descent from non-RVSM aircraft in RVSM airspace. Flight Levels Above RVSM Airspace Without 3. Non-RVSM aircraft flights will be handled Intermediate Level Off. on a workload permitting basis. The vertical 5. Foreign State (government) aircraft. separation standard applied between aircraft not approved for RVSM and all other aircraft must be c. Methods for operators of non-RVSM aircraft to 2,000 feet. request access to RVSM Airspace. Operators may: 4. Required Pilot Calls. The pilot of non- 1. LOA/MOU. Enter into a Letter of Agree- RVSM aircraft will inform the controller of the lack ment (LOA)/Memorandum of Understanding of RVSM approval in accordance with the direction (MOU) with the RVSM facility (the Air Traffic provided in Paragraph 4-6-8, Pilot/Controller facility that provides air traffic services in RVSM Phraseology. airspace). Operators must comply with LOA/MOU. Operational Policy/Procedures for Reduced Vertical Separation Minimum (RVSM) in the 4-6-9 Domestic U.S., Alaska, Offshore Airspace and the San Juan FIR
Page 273 of the Aeronautical Information Manual (AIM.pdf)
AIM: Official Guide to Basic Flight Information and ATC Procedures