CHANGED PRODUCT RULE.

SEC. 117. [49 U.S.C. 44704 note] CHANGED PRODUCT RULE. (a) Review and Reevaluation of Amended Type Certificates.— (1) International leadership.—The Administrator shall exercise leadership in the creation of international policies and standards relating to the issuance of amended type certificates within the Certification Management Team. (2) Reevaluation of amended type certificates.—In carrying out this subsection, the Administrator shall— (A) encourage Certification Management Team members to examine and address any relevant covered recommendations (as defined in section 121(c)) relating to the issuance of amended type certificates; (B) reevaluate existing assumptions and practices inherent in the amended type certificate process and assess whether such assumptions and practices are valid; and (C) ensure, to the greatest extent practicable, that Federal regulations relating to the issuance of amended type certificates are harmonized with the regulations of other international states of design. (b) Amended Type Certificate Report and Rulemaking.— (1) Briefings.—Not later than 12 months after the date of enactment of this title, and annually thereafter through fiscal year 2028, the Administrator shall brief the congressional committees of jurisdiction on the work and status of the development of such recommendations by the Certification Management Team. (2) Initiation of action.—Not later than 2 years after the date of enactment of this title, the Administrator shall take action to revise and improve the process of issuing amended type certificates in accordance with this section. Such action shall include, at minimum— (A) initiation of a rulemaking proceeding; and (B) development or revision of guidance and training materials. (3) Contents.—In taking actions required under paragraph (2), the Administrator shall do the following: (A) Ensure that proposed changes to an aircraft are evaluated from an integrated whole aircraft system perspective that examines the integration of proposed changes with existing systems and associated impacts. (B) Define key terms used for the changed product process under sections 21.19 and 21.101 of title 14, Code of Federal Regulations. (C) Consider— (i) the findings and work of the Certification Management Team and other similar international harmonization efforts; (ii) any relevant covered recommendations (as defined in section 121(c)); and (iii) whether a fixed time beyond which a type certificate may not be amended would improve aviation safety. (D) Establish the extent to which the following design characteristics should preclude the issuance of an amended type certificate: (i) A new or revised flight control system. (ii) Any substantial changes to aerodynamic stability resulting from a physical change that may require a new or modified software system or control law in order to produce positive and acceptable stability and handling qualities. (iii) A flight control system or augmented software to maintain aerodynamic stability in any portion of the flight envelope that was not required for a previously certified derivative. (iv) A change in structural components (other than a stretch or shrink of the fuselage) that results in a change in structural load paths or the magnitude of structural loads attributed to flight maneuvers or cabin pressurization. (v) A novel or unusual system, component, or other feature whose failure would present a hazardous or catastrophic risk. (E) Develop objective criteria for helping to determine what constitutes a substantial change and a significant change. (F) Implement mandatory aircraft-level reviews throughout the certification process to validate the certification basis and assumptions. (G) Require maintenance of relevant records of agreements between the FAA and an applicant that affect certification documentation and deliverables. (H) Ensure appropriate documentation of any exception or exemption from airworthiness requirements codified in title 14 of the Code of Federal Regulations, as in effect on the date of application for the change. (4) Guidance materials.—The Administrator shall consider the following when developing orders and regulatory guidance, including advisory circulars, where appropriate: (A) Early FAA involvement and feedback paths in the aircraft certification process to ensure the FAA is aware of changes to design assumptions and product design impacting a changed product assessment. (B) Presentation to the FAA of new technology, novel design, or safety critical features or systems, initially and throughout the certification process, when development and certification prompt design or compliance method revision. (C) Examples of key terms used for the changed product process under sections 21.19 and 21.101 of title 14, Code of Federal Regulations. (D) Type certificate data sheet improvements to accurately state which regulations and amendment level the aircraft complies to and when compliance is limited to a subset of the aircraft. (E) Policies to guide applicants on proper visibility, clarity, and consistency of key design and compliance information that is submitted for certification, particularly with new design features. (F) The creation, validation, and implementation of analytical tools appropriate for the analysis of complex system for the FAA and applicants. (G) Early coordination processes with the FAA for the functional hazard assessments validation and preliminary system safety assessments review. (5) Training materials.—The Administrator shall— (A) develop training materials for establishing the certification basis for changed aeronautical products pursuant to section 21.101 of title 14, Code of Federal Regulations, applications for a new type certificate pursuant to section 21.19 of such title, and the regulatory guidance developed as a result of the rulemaking conducted pursuant to paragraph (2); and (B) procedures for disseminating such materials to implementing personnel of the FAA, designees, and applicants. (6) Certification management team defined.—In this section, the term “Certification Management Team” means the team framework under which the FAA, the European Aviation Safety Agency, the Transport Canada Civil Aviation, and the National Civil Aviation Agency of Brazil, manage the technical, policy, certification, manufacturing, export, and continued airworthiness issues common among the 4 authorities. (7) Deadline.—The Administrator shall finalize the actions initiated under paragraph (2) not later than 3 years after the date of enactment of this title. (c) International Leadership.—The Administrator shall exercise leadership within the ICAO and among other civil aviation regulators representing states of aircraft design to advocate for the adoption of an amended changed product rule on a global basis, consistent with ICAO standards.