That is my problem:

[kuh-pas-i-tee] Show IPA
noun, plural -ties, adjective
–noun
1.
the ability to receive or contain: This hotel has a large capacity.
2.
the maximum amount or number that can be received or contained; cubic contents; volume: The inn is filled to capacity. The gasoline tank has a capacity of 20 gallons.
3.
power of receiving impressions, knowledge, etc.; mental ability: the capacity to learn calculus.
4.
actual or potential ability to perform, yield, or withstand: He has a capacity for hard work. The capacity of the oil well was 150 barrels a day. She has the capacity to go two days without sleep.
5.
quality or state of being susceptible to a given treatment or action: Steel has a high capacity to withstand pressure.
6.
position; function; role: He served in the capacity of legal adviser.
7.
legal qualification.
8.
Electricity .
a.
capacitance.
b.
maximum possible output.


Both of these definitions can be used for this FAR in my opinion. I am sure the FSDO may run into the same issue. This FAR as many others should really be written better so as to leave less room for interpretation.