RAISING THE SAFETY BAR GLOBALLY THE NEXT STEPS BEYOND HARMONIZATION

1. RAISING THE SAFETY BAR GLOBALLY  THE NEXT STEPS BEYOND HARMONIZATION

2. 1 Topics of Discussion Harmonization History Existing Harmonization Workload Background - New Prioritization Process New Prioritization Process Summary Next Steps - Shared Strategic Vision for the Future Bullet 1) no explanation needed Bullet 2) Backlog of Terms of Reference (TOR) that are currently being proposed for HWP -will also address industry and authority resource issues - limited FAA capability to promulgate rules Bullet 3) Objectives and assumptions that the Industry/Authority Ad-Hoc team used in developing the new prioritization process Bullet 4) High level details defining how the new prioritization process could work in the future Bullet 5) What should the US/European aviation safety strategies be in the next decade in order to achieve an enhanced global aviation safety environment?Bullet 1) no explanation needed Bullet 2) Backlog of Terms of Reference (TOR) that are currently being proposed for HWP -will also address industry and authority resource issues - limited FAA capability to promulgate rules Bullet 3) Objectives and assumptions that the Industry/Authority Ad-Hoc team used in developing the new prioritization process Bullet 4) High level details defining how the new prioritization process could work in the future Bullet 5) What should the US/European aviation safety strategies be in the next decade in order to achieve an enhanced global aviation safety environment?

3. 2 Harmonization History Harmonization Activity going on for over a decade Focus mainly on Airworthiness Codes (parts 23/25,27/29, 33/JARE) and Operations, Maintenance, and Licensing Harmonization of Airworthiness Codes is very close to being technically complete Only a small number of significant regulatory differences remain JAA has recently published numerous harmonization NPAs Rulemaking barriers at the FAA have precluded similar progress FAA policy allows use of draft harmonization proposals to maintain level FAA/JAA certification basis until final rules are published FAA’s Rulemaking Barriers - 1) OMB signoff required on all significant rules 2) Andrew Card Memo requiring all rules go through OST 3) Limited number of FAA economist resources 4) Majority of FAA rulemaking resources focused on security initiatives 5) Management Advisory Council (MAC) Recommendation The FAA has had difficulty in publishing the results of the harmonization efforts at the same pace as the JAA, mainly because of limited resources and the need to redistribute these resources on other safety critical initiatives (e.g. on security). The FAA remains committed to publish these harmonized proposals and is working on plan to expedite this process for many of the simpler harmonization tasks. In the interim, the FAA has developed policy that allows all manufacturers to use draft or unpublished harmonization rules and advisory materials in their certification basis and compliance plans by way of issue paper for draft advisory material, and equivalent safety or exemptions for draft regulations. This FAA policy has been widely distributed to all authorities and industry groups involved in the HMT and ARAC rulemaking groups. FAA’s Rulemaking Barriers - 1) OMB signoff required on all significant rules 2) Andrew Card Memo requiring all rules go through OST 3) Limited number of FAA economist resources 4) Majority of FAA rulemaking resources focused on security initiatives 5) Management Advisory Council (MAC) Recommendation The FAA has had difficulty in publishing the results of the harmonization efforts at the same pace as the JAA, mainly because of limited resources and the need to redistribute these resources on other safety critical initiatives (e.g. on security). The FAA remains committed to publish these harmonized proposals and is working on plan to expedite this process for many of the simpler harmonization tasks. In the interim, the FAA has developed policy that allows all manufacturers to use draft or unpublished harmonization rules and advisory materials in their certification basis and compliance plans by way of issue paper for draft advisory material, and equivalent safety or exemptions for draft regulations. This FAA policy has been widely distributed to all authorities and industry groups involved in the HMT and ARAC rulemaking groups.

4. 3 Harmonization History Harmonization of operations, maintenance, and licensing have focused on areas of significant benefit to industry Identical FAR/JAR regulations have not always been an objective Some initiatives have not involved rulemaking Maintenance Review Policy Board Pilot type rating determination Harmonization efforts to date are considered a success Range of Rulemaking initiatives waiting to tasked to Harmonization Work Groups (HWG): - importance of each of these new initiatives ranges from essential for future safety to very little or no effect on safety. - some of these initiatives are linked to efficiency gains in the certification process and thus provide only an administrative benefit. Range of Rulemaking initiatives waiting to tasked to Harmonization Work Groups (HWG): - importance of each of these new initiatives ranges from essential for future safety to very little or no effect on safety. - some of these initiatives are linked to efficiency gains in the certification process and thus provide only an administrative benefit.

5. 4 Existing Harmonization Workload The backlog of new rulemaking initiatives is over 130 and growing. Majority of these projects are part 25 Many of these projects are not safety critical Many projects waiting for years to be formally tasked to HWG The FAA has published an average of 6 part 25 HWG final rules per year since 1995 Recite FAA’s Rulemaking Barriers - 1) OMB signoff required on all significant rules 2) Andrew Card Memo requiring all rules go through OST 3) Limited number of FAA economist resources 4) Majority of FAA rulemaking resources focused on security initiatives 5) Management Advisory Council (MAC) Recommendation Recite FAA’s Rulemaking Barriers - 1) OMB signoff required on all significant rules 2) Andrew Card Memo requiring all rules go through OST 3) Limited number of FAA economist resources 4) Majority of FAA rulemaking resources focused on security initiatives 5) Management Advisory Council (MAC) Recommendation

6. 5 Existing Harmonization Workload JAA rulemaking process is streamlined relative to the FAA’s process JAA published over 20 new NPAs in 2002 Even the JAA’s streamlined process is having trouble keeping up with growing backlog of rulemaking work Some HWG recommendations have gone unpublished for years

7. 6 Existing Harmonization Workload Problems with existing rulemaking process: Authority and industry resources are currently working on numerous harmonization initiatives unlikely that completed work will be formally published by authorities near term resources could be focused on critical safety issues New prioritization process needed

8. 7 Existing Harmonization Workload New prioritization process would recognize: Prioritized safety initiatives Limited authority and industry resources Realistic limitations on rulemaking capability Process would include safety, harmonization, and administrative rule proposals

9. 8 Background - New Prioritization Process HMT set up an Ad-Hoc group to develop a new prioritization process. Focused on “prioritization” issue Input needed from regulatory authorities, industry, and the public Initiatives to be assessed include: Unfinished existing HWG initiatives Backlog of TORs not yet formally tasked JSSI, CAST, and CPS initiatives

10. 9 Background - New Prioritization Process  FAA would expedite publishing of enveloped HWG proposals that have been completed simple part 25 harmonization tasks (40+) no economic impact to industry no additional industry or FAA economist resources needed plan to bundle these tasks together may request industry support The JAA has published 20+ Harmonization NPAs already this year. While not every one of these NPAs was considered an“enveloping” task, the Ad -Hoc team struggled with how to align the current harmonization disparity between the JAA and FAA. While this plan does not entirely align the FAA- JAA rulemaking disparity, it would greatly close the gap to an acceptable level. This FAA plan has been presented (AND ACCEPTED) at the latest TAEIG and HMT meetings. With the current posture of OST, Aircraft Cert was very concerned that 40 individual rules, no matter how simple and cost neutral, would never be allowed to pass through OST. Industry has agreed in principal to help lobby OST to gain approval of this bundled rulemaking package.The JAA has published 20+ Harmonization NPAs already this year. While not every one of these NPAs was considered an“enveloping” task, the Ad -Hoc team struggled with how to align the current harmonization disparity between the JAA and FAA. While this plan does not entirely align the FAA- JAA rulemaking disparity, it would greatly close the gap to an acceptable level. This FAA plan has been presented (AND ACCEPTED) at the latest TAEIG and HMT meetings. With the current posture of OST, Aircraft Cert was very concerned that 40 individual rules, no matter how simple and cost neutral, would never be allowed to pass through OST. Industry has agreed in principal to help lobby OST to gain approval of this bundled rulemaking package.

11. 10 Background - New Prioritization Process Process should be safety driven, with latitude to allow for a limited number of projects resulting in efficiency gains Process should contain a limited number of placeholders for projects in part 23, 27/29, 33, etc. avoid dominance of part 25/121 projects Final product should be a realistic list of approximately 20 projects projects may be a various stages of maturity

12. 11 Background - New Prioritization Process Process assumes that authorities maintain ability to carry out a “limited number” of unilateral rulemaking actions. Justify on “case by case” basis Still encourage participation by industry and other authorities Develop process to restore “harmonization after unilateral action taken

13. 12 New Prioritization Process Authorities Publish Final List of Prioritized Rule Projects

14. 13 New Prioritization Process Step 1 - FAA/JAA/TCCA combine their rulemaking lists, where appropriate includes all unfinished existing projects or new proposals that are not yet tasked proposals should fall into one of the following qualifications: supports safety enhancements (e.g. CAST/JSSI) addresses safety/security concerns addresses new or emerging technology Implements ICAO standards/recommendations Improves efficiency of cert/approval process

15. 14 New Prioritization Process Step 2 - Authorities publish combined rulemaking list and request public meeting FAA to publish Federal Register notice that references joint rulemaking list (posted on website) and announces date/location of public meeting JAA would post rulemaking list on their website and send out notification of the public meeting to their JAAC members and interested parties (IPAP)

16. 15 New Prioritization Process Step 3 - Conduct public meeting Chaired by FAA, JAA, and TCCA Directors/Chiefs of Certification and Operation Authorities and industry/public would be present their rulemaking proposals Presentations would follow standardized format Proposals would have to be substantiated by data Meeting would occur every other year

17. 16 New Prioritization Process Step 4 - Authorities only meeting Occurs on day after the public meeting Review/comment on all presentations Vote to determine the final list of 20+/- rules that will be collectively supported voting could be accomplished using “expert choice” software or other previously agreed to method

18. 17 New Prioritization Process Step 5 - Final list of rules published by authorities federal register, web sites, letters, etc Commitment - All parties have to agree to fully support this downsized rulemaking list Additional Action - develop an ad-hoc process to address high priority “pop-up” rule projects between public meetings

19. 18 Overall Process

20. 19 New Prioritization Process Benefits of new prioritization process Uses available resources to achieve greatest safety/efficiency gains Provides for a cooperative approach to addressing aviation rulemaking Allows flexibility for authorities/industry to respond to changing safety trends

21. 20 Summary of Prioritization Process Continue to preserve the benefits of harmonization Prioritization of rulemaking projects is necessary to efficiently achieve our safety goals Commitment needed from Industry and regulatory authorities to actively support a prioritized rulemaking plan

22. 21 Next Steps Strategic Vision for the Future North American and European aviation systems are among the safest in the world Significant challenges on the Horizon EASA transition Declining economic conditions Increasing need to prioritize resources Need to preserve benefits of Harmonization

23. 22 Next Steps Strategic Vision for the Future What should our Aviation Safety Strategy look like for the next decade? Need to raise the Global Safety Bar Find creative ways to engage all aviation authorities in implementing safety enhancements

24. 23 Next Steps Strategic Vision for the Future Ideas for discussion: Influencing ICAO Standards and Recommended Practices Promoting international implementation of FAA and JAA safety agendas Sharing of safety data Implementing lessons learned from harmonization

25. 24 Next Steps Strategic Vision for the Future Ideas for discussion: Enhancing partnership with industry Streamlining processes Completing joint rulemaking priorities Measuring safety improvements and ensuring accountability