[Federal Register Volume 88, Number 36 (Thursday, February 23, 2023)]
[Rules and Regulations]
[Pages 11642-11674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03597]



[[Page 11641]]

Vol. 88

Thursday,

No. 36

February 23, 2023

Part V





Department of Transportation





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Federal Aviation Administration





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14 CFR Part 139





Airport Safety Management System; Final Rule

  Federal Register / Vol. 88, No. 36 / Thursday, February 23, 2023 / 
Rules and Regulations  

[[Page 11642]]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 139

[Docket No.: FAA-2010-0997; Amdt. No. 139-28]
RIN 2120-AJ38


Airport Safety Management System

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This final rule requires certain airport certificate holders 
to develop, implement, maintain, and adhere to an airport safety 
management system (SMS). Certificated airports that qualify under one 
or more of the following triggering criteria (triggers) are required to 
develop a SMS under this final rule: are classified as large, medium, 
or small hubs based on passenger data extracted from the FAA Air 
Carrier Activity Information System; have a 3-year rolling average of 
100,000 or more total annual operations, meaning the sum of all 
arrivals and departures; or serve any international operation other 
than general aviation. This rule would expand the safety benefits of 
SMS to certain certificated airports and further the FAA's aviation-
wide approach to SMS implementation in order to address safety at an 
organizational level.

DATES: This rule is effective April 24, 2023.

ADDRESSES: For information on where to obtain copies of rulemaking 
documents and other information related to this final rule, see ``How 
to Obtain Additional Information'' in SECTION VI of this document.

FOR FURTHER INFORMATION CONTACT: For technical questions about this 
action, contact James Schroeder, Airport Safety and Operations 
Division, AAS-300, Office of Airport Safety and Standards, Federal 
Aviation Administration, 800 Independence Avenue SW, Washington, DC 
20591; telephone (202) 267-4974; email [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Executive Summary
II. Background
III. Discussion of Public Comments and Final Rule
    A. Applicability
    1. General Applicability
    2. Triggers
    i. Hub Trigger
    ii. Operations Trigger
    iii. International Trigger
    3. Authority To Implement Triggers
    4. Annual Review of Applicability
    B. Implementation
    1. Phased Implementation
    2. Staggered Implementation
    3. FAA Review of Documents
    4. Timeline for Document Submission and Full Implementation
    5. Timeline for New Airports Qualifying After the Effective Date 
of This Final Rule, or Due to Changes in Status
    C. Non-Movement Area
    1. Regulatory Authority in the Non-Movement Area
    2. Inclusion of Fuel Farms, Baggage-Makeup, and Military Areas
    3. Inconsistency With ICAO Standard
    4. Air Carrier Operations in Non-Movement Areas
    D. Data Protection
    1. State-Level Fix
    2. Federal-Level Protection
    3. Creation of a National Data Repository
    4. De-Identified Data
    E. Safety Reporting and Interoperability
    1. Change in Terminology
    2. Data Sharing and Reporting Plan
    3. Crewmembers Accessing Non-Movement Areas
    F. Training and Orientation
    1. Identification of Roles, Responsibilities, and Minimum 
Training Elements
    2. Training Estimates Used in Regulatory Evaluation calculations
    3. Safety Awareness Orientation
    4. Development of Training Materials
    5. Clarification of ``Comprehensive SMS Training''
    6. Clarification of ``Access''
    G. Accountable Executive
    1. Amendment or Elimination of the Accountable Executive 
Requirement
    2. Delegation
    3. Personal Liability and Oversight
    H. Definitions
    1. ``Hazard'' Definition
    2. ``Non-Movement Area'' Definition
    3. Harmonization of ``Safety Policy,'' ``Safety Risk 
Management,'' ``Safety Assurance,'' and ``Safety Promotion'' 
Definitions
    I. Miscellaneous Topics
    1. FAA's Rulemaking Authority
    2. Applicability to Non-Certificated Airports
    3. FAA Oversight
    4. Safety Risk Management
    5. Record Retention
    6. SMS Manual Updates
    7. Guidance and Work Groups
IV. Regulatory Notices and Analyses
V. Executive Order Determinations
VI. How To Obtain Additional Information

List of Abbreviations and Acronyms Frequently Used in This Document

AC Advisory Circular
ACAIS Air Carrier Activity Information System
ACM Airport Certification Manual
AOC Airport operating certificate
ARP FAA Office of Airports
ATO FAA Air Traffic Organization
AVS FAA Aviation Safety Organization
CFR Code of Federal Regulations
CBP Customs and Border Protection
DSR Plan Data Sharing and Reporting Plan
E.O. Executive Order
FAA Federal Aviation Administration
FOIA Freedom of Information Act
ICAO International Civil Aviation Organization
NPIAS National Plan of Integrated Airport Systems
NPRM Notice of Proposed Rulemaking
NTSB National Transportation Safety Board
OMB Office of Management and Budget
OpsNet FAA Operations Network
SBREFA Small Business Regulatory Enforcement Fairness Act of 1996
SMS Safety Management System
SNPRM Supplemental Notice of Proposed Rulemaking
SRM Safety Risk Management
SSI Sensitive Security Information

I. Executive Summary

A. Purpose of the Regulatory Action

    SMS has generated wide support in the aviation community as an 
effective approach that can deliver real safety and financial 
benefits.\1\ SMS integrates modern safety concepts into repeatable, 
proactive processes in a single system, emphasizing safety management 
as a fundamental business process to be considered in the same manner 
as other aspects of business management. The development and 
implementation of SMS improves safety at the organizational level and 
is the next step in the continuing evolution of aviation safety. 
Therefore, the FAA is pursuing an aviation-wide approach that would 
require the implementation of SMS by those organizations in the best 
position to prevent future accidents. As part of that process, the FAA 
is expanding SMS's benefits to certain certificated airports by 
requiring them to proactively identify and mitigate safety hazards, 
thereby reducing the possibility or recurrence of incidents or 
accidents in air transportation. The purpose of this final rule is to 
require certain Title 14 Code of Federal Regulations (CFR) part 139 \2\ 
certificate holders to develop,

[[Page 11643]]

implement, maintain, and adhere to an airport safety management system 
(SMS).
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    \1\ See, e.g., National Transportation Safety Board, NTSB Calls 
for Enhanced Safety Standards in Some Revenue Passenger-Carrying 
General Aviation Operations (Mar. 23, 2021), https://www.ntsb.gov/news/press-releases/Pages/NR20210323.aspx; Transportation Research 
Board, Airport Cooperative Research Program (ACRP) Synthesis 37: 
Lessons Learned from Airport Safety Management Systems Pilot Studies 
at 46 (2012) (explaining that airports that participated in the SMS 
program reported increased safety awareness and improved 
collaboration).
    \2\ Part 139 requires airports serving scheduled air carrier 
aircraft with more than 9 seats or unscheduled air carrier aircraft 
with more than 30 seats to hold an Airport Operating Certificate 
(AOC). Under part 139, a certificate holder must develop and 
maintain an Airport Certification Manual (ACM). The ACM contains the 
processes and procedures the airport uses to comply with part 139 
requirements, and the FAA approves the ACM and updates to it.
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    A SMS is a formal means for organizations to identify and manage 
safety risks in their operations. It includes systematic procedures, 
practices, and policies for the management of safety risk. SMS enforces 
the concept that safety should be managed with as much emphasis, 
commitment, and focus as any other critical area of an organization. It 
prompts organizations to develop decision-making processes and 
procedures and use effective safety risk controls to proactively 
identify and mitigate or address any detected noncompliant or unsafe 
conditions in their operations. As discussed in the FAA Airport SMS 
Pilot Study report,\3\ airports that voluntarily implemented SMS have 
reported better efficiency in identifying and mitigating hazards in 
daily activities such as pedestrian safety on ramps and operations with 
ground support equipment.\4\ These airports also used SMS processes for 
significant events, such as construction safety and phasing planning, 
to proactively identify and mitigate hazards before the start of the 
project. This proactive approach, along with the communication of 
safety issues, provides a robust mechanism for airports to improve 
safety. The FAA has not formally tracked the number of airports that 
have implemented SMS since it is not yet a required element under part 
139.
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    \3\ Federal Aviation Administration, Airport Safety Management 
Systems (SMS) Pilot Studies, https://www.faa.gov/sites/faa.gov/files/airports/airport_safety/safety_management_systems/external/smsPilotTechReportMay2011.pdf (May 2011).
    \4\ FAA has not evaluated an airport's safety record prior to 
participating in SMS under the pilot program. In general, however, 
the FAA recognizes that airports participating in the pilot studies 
were proactive about the safety of their operations.
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    The purpose of a SMS is to reduce incidents, accidents, and 
fatalities in the airfield operations environment. A specific example 
cited in the RIA was the FOD damage to 14 aircraft in 2007 (NTSB 
Accident No: DEN07IA069). The advanced communication procedures in a 
SMS could have expedited the reporting, assessment and mitigation of 
the FOD hazard, thus limiting the likelihood and severity of this 
hazard. Expanding SMS to certain certificated airports is the best 
strategy to continue to reduce incidents and accidents, and improve 
safety in aviation. ICAO, other Civil Aviation Authorities, industry 
advisory groups, and the NTSB all support the use of SMS to improve 
safety. In the U.S., safety management systems have been implemented by 
part 121 operators and the FAA has voluntary programs designed to 
expand the use of SMS throughout the aviation system. The FAA has even 
implemented SMS within many of its organizations. Further, expansion of 
SMS would also align the U.S. with current ICAO Standards and 
Recommended Practices.
    This final rule requires airport certificate holders that qualify 
under one or more of the following triggering criteria (triggers) to 
develop a SMS: airports: (a) classified as large, medium, or small 
hubs, based on passenger data extracted from the FAA Air Carrier 
Activity Information System; (b) that have a 3-year rolling average of 
100,000 or more total annual operations, meaning the sum of all 
arrivals and departures; \5\ or (c) that serve any international 
operation other than general aviation. The FAA applied a primarily 
risk-based approach to the final rule's applicability. The criteria are 
designed to maximize SMS's safety benefits to stakeholders in the least 
burdensome manner. Instead of requiring SMS at all certificated 
airports, only certificated airports with the highest passenger 
enplanements, the largest total operations, and those hosting 
international air traffic must have a SMS under this rule. This final 
rule applies to approximately 265 certificated airports. These airports 
cover over 90 percent of all U.S. passenger enplanements and include 
the facilities with the largest number of commercial air transportation 
operations. This allows safety benefits to flow to airports with the 
majority of aircraft operations in the United States in addition to 
airports with international passenger operations to ensure conformity 
with international standards and recommended practices with the least 
regulatory burden. This rule does not require SMS implementation at 
small airports with fewer resources where creating a SMS may be a 
larger proportional burden and may not be cost beneficial.
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    \5\ For the purposes of this trigger, the FAA will use the 
following sources of data to determine number of operations: (a) 
traffic counts reported by the Air Traffic Control Tower through FAA 
Operations Network (OpsNet), for airports with FAA or contract 
towers; (b) FAA Form 5010-1 data for non-towered airports; or (c) 
other FAA-validated counting systems. Historical OpsNet data is 
publicly available through FAA.gov.
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    This final rule includes an exception to the applicability of the 
SMS requirement. If a certificate holder qualifies exclusively under 
the international services trigger, then it may file a waiver request 
to seek relief from the regulatory requirement to implement SMS. To do 
so, it must certify that it does not host any operation by any tenant 
\6\ that is required to implement SMS under the applicable laws or 
regulations of its country of origin (i.e., the jurisdiction that 
issued the tenant's air carrier certificate, air operator certificate, 
or equivalent) or any other governing jurisdiction. For example, if 
international services at an airport are solely provided for operators 
engaged in general aviation operations, then--absent another trigger--
the FAA will not require the airport to implement SMS. By linking the 
international trigger for part 139 airports to the presence of 
international tenants with SMS requirements, the FAA supports a 
holistic approach that encourages the sharing of data and proactive 
risk management inherent to SMS. Without this linkage, neither SMS 
reaches its full potential safety benefit. However, if an air carrier 
tenant commences international service to or from such airport, and the 
country of origin of such air carrier tenant requires that it adhere to 
a SMS, then the exception does not apply and the airport must implement 
SMS.
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    \6\ As discussed later in this document, tenant refers to any 
person or entity occupying space or property under a lease or other 
agreement (such as an air carrier or maintenance repair and overhaul 
company) that does business at the airport.
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    In the interest of safety, this final rule requires the 
implementation of SMS in both the movement and non-movement areas \7\ 
of qualifying airports. This rule allows airports to enter into data 
sharing and reporting arrangements with certain air carrier tenants. 
Such arrangements allow tenants to share with part 139 certificate 
holders any hazard report submitted though the tenants' confidential 
employee reporting systems. This reduces the burden of having to report 
hazards under two different reporting systems and fosters cooperation 
and increased communication of safety issues among interested parties, 
while avoiding gaps in SMS coverage. Separately, this final rule adds 
an authority citation inadvertently omitted from a previous final rule 
and amends Sec.  139.101 by removing paragraph (c), which no longer 
applies.
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    \7\ ``Movement area'' is defined as the runways, taxiways, and 
other areas of an airport that are used for taxiing, takeoff, and 
landing of aircraft, exclusive of loading ramps and aircraft parking 
areas, and that are under the control of an air traffic control 
tower. ``Non-movement Area'' is defined as taxiways, aprons, and 
other areas not under the control of air traffic or at airports 
without an operating airport traffic control tower.
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    Airport SMS will help FAA develop its oversight processes so that 
FAA

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targets its involvement on the areas of highest safety risk. For 
airports with a fully implemented SMS and that have a consistent 
history of compliance with the requirements of part 139, the FAA will 
transition to system-based inspections, thereby allowing inspectors to 
focus on areas of greater risk and the FAA to modify the duration of 
time between inspections for those airports. In addition to focusing 
FAA's resources to best address safety needs, the FAA anticipates this 
approach will create government cost savings from reduced inspector 
time and travel costs.

B. Summary of the Major Provisions of the Regulatory Action

    In its most general form, SMS is a set of decision-making tools 
that a certificate holder uses to plan, organize, direct, and control 
its everyday activities in a manner that enhances safety. An airport 
SMS must include, at a minimum, four components: (a) safety policy, (b) 
safety risk management, (c) safety assurance, and (d) safety promotion.
    Certificate holders must identify their plans for developing and 
implementing SMS through an FAA-approved Implementation Plan (see Sec.  
139.403). Pursuant to Sec.  139.401(f), certificate holders may choose 
to either document their airport SMS in a separate SMS Manual or in 
their FAA-approved ACM (see also Sec. Sec.  139.201-139.203).
    The submission of SMS Implementation Plans is staggered based on 
which trigger prompts certificate holders to comply with this final 
rule. Airports qualifying under the hub trigger must submit their 
Implementation Plans first, within 12 months of the effective date of 
this rule. Certificate holders qualifying under the annual operations 
trigger must submit Implementation Plans within 18 months, and airports 
qualifying under the international trigger must submit their 
Implementation Plans within 24 months.
    All certificate holders subject to this final rule must submit 
their SMS Manual and/or revised ACM to the FAA within the 12 months 
immediately following the FAA's approval of the Implementation Plan. 
Certificate holders have 36 months following approval of the 
Implementation Plan to fully implement their SMS.
    Table 1 provides a brief summary of the major provisions of this 
final rule and changes from the SNPRM.
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    \8\ The FAA anticipates that some airports will provide routine 
updates to their accountable executive, such as through a 
continuously updated dashboard.

                  Table 1--Summary of Major Provisions
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                                     Proposed
             Issue              requirement (from   Adopted requirement
                                    the SNPRM)
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Applicability of SMS            Limited to         Limited to
 requirements.                   certificate        certificate holders:
                                 holders:          (a) Classified as
                                (a) Classified as   large, medium, or
                                 large, medium,     small hub; or
                                 or small hub; or. (b) Having an average
                                (b) Having more     of 100,000 or more
                                 than 100,000       total annual
                                 total annual       operations (the sum
                                 operations; or.    of all arrivals and
                                (c) Classified as   departures) over the
                                 a port of entry,   previous three
                                 designated         calendar years; or
                                 international     (c) Classified as a
                                 airport, landing   port of entry,
                                 rights airport,    designated
                                 or user fee        international
                                 airport..          airport, landing
                                                    rights airport, or
                                                    user fee airport.
                                                   Sec.   139.401(a).
Waiver for International        NONE.............  Allow a certificate
 Trigger.                                           holder that
                                                    qualifies
                                                    exclusively under
                                                    the international
                                                    trigger to obtain a
                                                    waiver from
                                                    complying with the
                                                    SMS requirements if
                                                    it has no tenants
                                                    that are required to
                                                    comply with SMS
                                                    requirements of any
                                                    jurisdiction.
                                                   Sec.   139.401(d).
Scope.........................  SAME AS ADOPTED..  Encompass aircraft
                                                    operations in the
                                                    movement and non-
                                                    movement areas (and
                                                    other airport
                                                    operations addressed
                                                    in part 139).
                                                   Sec.   139.401(b).
Scale.........................  SAME AS ADOPTED..  Correspond in size,
                                                    nature, and
                                                    complexity to the
                                                    operations,
                                                    activities, and
                                                    risks associated
                                                    with the airport's
                                                    operations.
                                                   Sec.   139.401(c).
Implementation Plan...........  SAME AS ADOPTED..  Detail how the
                                                    airport will meet
                                                    the requirements of
                                                    this final rule;
                                                    include a schedule
                                                    for implementing the
                                                    SMS components;
                                                    describe any
                                                    existing programs or
                                                    policies the airport
                                                    will use to meet the
                                                    SMS requirements.
                                                   Sec.   139.403(b).
Documenting the SMS             SAME AS ADOPTED..  Include methods of
 requirements.                                      compliance contained
                                                    within the ACM or a
                                                    separate SMS Manual
                                                    with incorporation
                                                    by reference in the
                                                    ACM.
                                                   Sec.   139.401(f).
Document Submission and         Submit             Submit Implementation
 Implementation Deadlines.       Implementation     Plan on or before:
                                 Plan on or         12 months
                                 before 12 months.  for hub triggers;
                                Submit SMS Manual   18 months
                                 and/or ACM         for operations
                                 update on or       triggers; and
                                 before 24 months.  24 months
                                Fully implement     for international
                                 the SMS on or      triggers.
                                 before 24 months. Sec.   139.403(a).
                                                   Submit SMS Manual and/
                                                    or ACM update on or
                                                    before 12 months
                                                    after FAA-approval
                                                    of the
                                                    Implementation Plan.
                                                   Sec.   139.403(c).
                                                   Fully implement the
                                                    SMS no later than 36
                                                    months after FAA-
                                                    approval of the
                                                    Implementation Plan.
                                                   Sec.   139.403(d).
Accountable executive.........  SAME AS ADOPTED..  Identify the
                                                    accountable
                                                    executive; report
                                                    pertinent safety
                                                    information and data
                                                    on a regular basis
                                                    to the accountable
                                                    executive.\8\
                                                   Sec.   139.402(a)(1);
                                                    Sec.
                                                    139.402(c)(3).

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Safety Policy Statement.......  SAME AS ADOPTED..  Establish and
                                                    maintain a safety
                                                    policy statement
                                                    signed by the
                                                    accountable
                                                    executive.
                                                   Sec.   139.402(a)(2).
Safety Objectives.............  SAME AS ADOPTED..  Establish and
                                                    maintain safety
                                                    objectives; define
                                                    methods, processes,
                                                    and organizational
                                                    structure necessary
                                                    to meet those safety
                                                    objectives; monitor
                                                    safety performance.
                                                   Sec.   139.402(a)(6)
                                                    & (7); Sec.
                                                    139.402(c)(1).
Safety Risk Management........  SAME AS ADOPTED..  Establish a system to
                                                    identify operational
                                                    safety issues and a
                                                    process to analyze
                                                    hazards and their
                                                    risks.
                                                   Sec.   139.402(b).
Safety Reporting System.......  SAME AS ADOPTED..  Establish and
                                                    maintain a reporting
                                                    system that provides
                                                    for reporter
                                                    confidentiality.
                                                   Sec.   139.402(c)(2).
Data Sharing and Reporting      NONE.............  Provides option to
 Plan.                                              develop data sharing
                                                    and reporting plan
                                                    with tenant(s)
                                                    required to maintain
                                                    a SMS subject to
                                                    requirements of 14
                                                    CFR part 5. When
                                                    such a plan exists,
                                                    relieves airport
                                                    from providing
                                                    safety awareness
                                                    orientation to
                                                    applicable tenants
                                                    or their employees.
                                                   Sec.   139.401(e).
Training and Orientation......  SAME AS ADOPTED..  Provide all persons
                                                    authorized access to
                                                    movement and non-
                                                    movement areas
                                                    safety awareness
                                                    orientation; provide
                                                    all employees with
                                                    responsibilities
                                                    under the SMS
                                                    training appropriate
                                                    to their roles.
                                                   Sec.   139.402(d)(1)
                                                    & (3).
Safety Communications.........  SAME AS ADOPTED..  Develop and maintain
                                                    formal means for
                                                    communicating
                                                    important safety
                                                    information.
                                                   Sec.   139.402(d)(5).
Record Keeping................  SAME AS ADOPTED..  Retain:
                                                    SMS training
                                                    records and
                                                    orientation
                                                    materials for 24
                                                    consecutive calendar
                                                    months;
                                                    SRM
                                                    documentation for
                                                    the longer of 36
                                                    consecutive calendar
                                                    months after the
                                                    risk analysis has
                                                    been completed or 12
                                                    consecutive calendar
                                                    months after
                                                    mitigations
                                                    completed; and
                                                    Safety
                                                    communications for
                                                    12 consecutive
                                                    calendar months.
                                                   Sec.   139.301(b)(1)
                                                    & (9) & (10).
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C. Summary of Costs and Benefits

    The goal of this rule is to improve the safety of the airfield 
environment (including movement and non-movement areas) by providing an 
airport with decision-making tools to plan, organize, direct, and 
control its everyday activities in a manner that enhances safety. The 
FAA envisions airports being able to use all of the components of a SMS 
to enhance their ability to identify safety issues and spot trends 
before they result in a near-miss incident or accident. While the FAA's 
use of prescriptive regulations and technical operating standards has 
been effective, such regulations may leave gaps best addressed through 
performance-based management practices. For example, pilots and 
controllers may be required to report incidents (such as bird-strikes 
or runway incursions) under their respective SMS. However, they may not 
be required to notify the airport of the incident. Because the airport 
operator best understands its own operating environment, it is in the 
best position to address many of its own safety issues providing it has 
sufficient data to address the hazard. A SMS may provide an airport 
with the capacity to anticipate and address safety issues before they 
lead to an incident or accident. Table 2 shows quantified present value 
and annualized benefits and costs over 10 years. The FAA anticipates 
additional benefits at airports with an implemented Airport SMS in the 
form of cost savings from reductions in the frequency and breadth of 
the traditional airport inspection and inspection cycle. Table 2 also 
includes the FAA's estimated cost savings of changing the traditional 
inspection cycle at airports with a fully implemented SMS.

                             Table 2--Comparison of Costs and Benefits Over 10 Years
                                           [Millions of 2020 dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Present value    Annualized     Present value    Annualized
                                                       (3%)            (3%)            (7%)            (7%)
----------------------------------------------------------------------------------------------------------------
Benefits........................................          $199.2           $23.4          $144.1           $20.5
Costs...........................................           179.8            21.1           139.0            19.8
Cost Savings....................................             3.1             0.4             2.2             0.3
Net Benefits (includes mitigation benefits, but             22.5             2.6             7.3             1.0
 excludes mitigation costs).....................
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Table notes: The sum of the individual items may not equal totals due to rounding. Estimates are provided at
  three and seven percent discount rates per Office of Management and Budget (OMB) guidance.


[[Page 11646]]

II. Background

A. Authority for This Rulemaking

    The FAA's authority to issue rules on aviation safety is found in 
Title 49 of the United States Code. This rulemaking is promulgated 
under the authority described in: (a) 49 U.S.C. 44702, which authorizes 
the Administrator to issue airport operating certificates; (b) 49 
U.S.C. 44706, which authorizes the Administrator to (i) issue an AOC to 
a person desiring to operate an airport if the person properly and 
adequately is equipped and able to operate safely; and (ii) include in 
such AOC all necessary terms to ensure safety in air transportation; 
and (c) 49 U.S.C. 44701, which requires the Administrator to--among 
other things--promote safety, prescribe minimum safety standards, and 
carry out functions that best tend to reduce or eliminate the 
possibility or recurrence of accidents in air transportation. This 
regulation is within the scope of the aforementioned authorities 
because it requires certain certificated airports to develop and 
maintain a SMS to improve the safety of operations conducted at such 
airports. The development and implementation of SMS ensures safety in 
air transportation by helping airports proactively identify and 
mitigate safety hazards, thereby reducing the possibility or recurrence 
of accidents in air transportation.

B. Statement of the Problem

    The FAA has determined that there are unmitigated risks and safety 
gaps in the airport environment necessitating a systems approach to 
improve safety at part 139 certificated airports. The goal of this rule 
is to improve the safety of the airfield environment (including 
movement and non-movement areas). The FAA intends to evolve the current 
part 139 compliance program into a proactive, and ultimately predictive 
approach using the structured discipline of SMS principles.
    The increasing demands on the U.S. air transportation system, 
including additional air traffic and surface operations, and airport 
construction, present a potential increased presence of operational 
hazards in the airfield environment. However, many accidents and 
incidents that may be mitigated under SMS may not be shared outside the 
organization, especially in regards to the non-movement area, thus 
limiting FAA's insight into the breadth or scale of near-miss and other 
types of potentially hazardous incidents. While the FAA's use of 
prescriptive regulations and technical operating standards has been 
effective, such regulations may leave gaps best addressed through 
improved management practices. As the certificate holder best 
understands its own operating environment, it is in the best position 
to address many of its own safety issues. A SMS may provide an airport 
with the capacity to anticipate and address safety issues before they 
lead to an incident or accident.

C. Related Actions

    In 2015, the FAA issued a final rule requiring 14 CFR part 119 
certificate holders authorized to conduct operations under 14 CFR part 
121 to develop and implement a SMS (see 14 CFR part 5, Safety 
Management Systems).\9\ The part 5 rule established a general framework 
and minimum requirements for designing and implementing SMS and allowed 
air carriers to adapt the SMS to ensure it appropriately dealt with the 
size, scope, and complexity of their part 121 operations. Additionally, 
under FAA Order 8000.369, the FAA uses SMS internally in offices such 
as Airports, Air Traffic Organization, Aviation Safety, Security and 
Hazardous Materials, Next Generation Air Transportation, and Commercial 
Space Transportation.
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    \9\ Part 119 refers to the Certification of Air Carriers and 
Commercial Operators. Part 121 refers to Operating Requirements for 
Domestic, Flag, and Supplemental operations. Operations that occur 
under part 121 with a part 119 certificate are scheduled commercial 
air carrier operations. On January 8, 2015, the FAA published the 
Safety Management Systems for Domestic, Flag, and Supplemental 
Operations Certificate Holders final rule requiring operators 
authorized to conduct operations under part 121 to develop and 
implement a SMS. The rule added a new part 5 to Title 14 of the CFR, 
creating the set of requirements for SMS that a part 121 certificate 
holder must meet. The rule also modified part 119 to specify 
applicability and implementation of the new SMS framework. Part 119 
refers to the certification of part 121 air carriers and commercial 
operators. Part 121 air carriers are regularly scheduled air 
carriers and are generally large, U.S.-based airlines, regional air 
carriers, and all cargo operators.
---------------------------------------------------------------------------

    As of the effective date of this final rule, part 5 applies to part 
119 certificate holders authorized to conduct operations in accordance 
with part 121. The FAA acknowledges, however, that the applicability of 
part 5 may be expanded in the future, which could impact this final 
rule by allowing greater coordination between part 139 certificate 
holders and tenants through increased use of data sharing and reporting 
plans (as discussed later).
    This final rule targets part 139 certificated airport operators. It 
follows a similar framework and harmonizes definitions and requirements 
with the SMS requirements established under part 5 SMS, when and if 
appropriate. Nonetheless, this final rule recognizes that there might 
be differences in SMS requirements depending on the scope and 
complexity of the operations and types of regulated parties subject to 
14 CFR. For example, the FAA recognizes that an airport operation is 
inherently different from the operation of an air carrier and that the 
vast majority of part 139 certificate holders are public entities 
(owned and/or operated by a State or local government or a department, 
agency, special purpose district, political subdivision, or other 
instrumentality of a State or local government) rather than private 
entities like those operating as part 121 air carriers. The revised 
definition proposed in the SNPRM, and adopted in this final rule of an 
accountable executive eliminates the substantive differences between 
the part 121 and part 139 definitions, and clarifies that the 
accountable executive should not be personally liable to the FAA 
through certificate action or civil penalty. Thus, in the interest of 
safety, harmonization is not feasible in all instances and differences 
in the SMS framework, definitions, and requirements are warranted to 
best deal with the types and varying degrees of operation of the part 
139 certificate holders subject to SMS.
    This final rule imposes a SMS requirement on certain airports 
certificated under part 139. It does not impose any additional SMS 
requirement on part 119 certificate holders, nor does it expand, 
revise, or amend the provisions, requirements, or responsibilities 
established in part 5. A Part 139 airport may choose to update its 
contractual agreements with applicable tenants. However, in most cases, 
airport operators have additional means to direct critical safety 
actions through other controlling documents including airport rules and 
regulations or minimum standards. Usually, contractual agreements with 
tenants point to, or incorporate by reference, those other documents to 
allow for more timely implementation of procedures and actions without 
the need for changes to the agreement. While the final rule does not 
impose additional SMS requirements on tenants, it is plausible that to 
achieve its own SMS requirements under part 139, an airport will use 
these controlling documents to extend certain SMS requirements onto 
part 119 certificate holders or other tenants.
    For the purposes of this final rule, the terms ``certificate 
holder'' (when used without part 139 before) and ``operator'' refer to 
any entity holding an AOC under part 139. The term ``tenant'' refers

[[Page 11647]]

to any person or entity occupying space or property under a lease or 
other agreement (such as an air carrier or maintenance repair and 
overhaul company) that does business at the airport.

D. National Transportation Safety Board (NTSB) Recommendations

    The NTSB has recommended SMS as a means to prevent future accidents 
and improve safety in air transportation. The NTSB has cited 
organizational factors contributing to aviation accidents and has 
recommended SMS for several sectors of the aviation industry, including 
aircraft operators and aerodromes (airports). The FAA agrees with the 
NTSB, concluding the organizational factors and benefits of SMS apply 
across the aviation industry, including airports.
    NTSB submitted comments to the SNPRM concurring with the FAA's 
``proposal that implementation of SMS at airports is warranted and that 
SMS should apply to the entire airfield environment, including non-
movement areas.'' \10\ NTSB approved of the FAA's proposal to include 
non-movement areas by stating: ``[they] have investigated accidents 
that clearly demonstrate that the potential for significant events is 
not limited to only the movement areas.''
---------------------------------------------------------------------------

    \10\ National Transportation Safety Board response to SNPRM, 
September 6th, 2016, Docket Number FAA-2010-0997-0179, Christopher 
A. Hart, Chairman, page 2.
---------------------------------------------------------------------------

E. International Movement Toward SMS

    ICAO's Annex 19--Safety Management document establishes a framework 
for member States to develop and implement SMS requirements. State 
Safety Programs, as implemented by member States, require SMS for the 
management of safety risk. Many member States, including the U.S., 
started developing and implementing in-country SMS requirements after 
Annex 19 became applicable in November 2013 (amended Annex 19 
applicable November 2019). ICAO requires SMS requirements for 
international commercial air transportation, international general 
aviation, design and manufacturing, maintenance, air traffic services, 
training organizations, and certified aerodromes. It is FAA policy to 
comply with ICAO standards to the maximum extent practicable. This rule 
would further align U.S. safety management system requirements for 
airports with international standards, which are recognized and 
followed by many international product and service providers also 
complying with ICAO Standards and Recommended Practices.

F. Summary of the NPRM and SNPRM

    On October 7, 2010, the FAA published in the Federal Register a 
notice of proposed rulemaking (NPRM) titled ``Safety Management System 
for Certificated Airports'' (75 FR 62008). The NPRM proposed to require 
all part 139 certificate holders to establish a SMS for the entire 
airfield environment, including movement and non-movement areas, to 
improve safety at airports hosting air carrier operations.
    While reviewing the comments received in response to the NPRM, the 
FAA began to re-evaluate whether requiring a SMS at all part 139 
certificated airports was the appropriate approach. As part of the re-
evaluation, the FAA assessed various combinations of criteria that 
could trigger the requirement to implement the SMS rule and to maximize 
safety benefits in the least burdensome manner.
    On July 14, 2016, the FAA published a supplemental notice of 
proposed rulemaking (SNPRM) titled ``Safety Management System for 
Certificated Airports'' (81 FR 45872). The SNPRM proposed creating 
triggers for SMS and proposed the FAA's preferred alternative to impose 
a SMS requirement on airports that (a) are large, medium, or small 
hubs; (b) serve international air traffic; or (c) have more than 
100,000 total annual operations. The FAA also revised the proposed 
implementation schedule to extend the implementation period from 18 
months to 24 months and requires the submission of an Implementation 
Plan within 12 months (instead of 6 months) from the effective date of 
the rule. The SNPRM clarified the training requirements and revised 
certain definitions to ensure consistency--when deemed appropriate--
among various FAA SMS initiatives. The SNPRM comment period closed on 
September 12, 2016.
    In 2021, the FAA decided to reopen the comment period in order to 
solicit comments on any new information or data generated since the 
close of the 2016 comment period. The FAA was aware of many airports 
that had voluntarily implemented SMS since 2016 that might provide 
additional insight to the SNPRM. The FAA also took into account the 
Covid-19 pandemic and the five years that had elapsed since the close 
of the 2016 comment period, and determined that these factors taken 
together warranted reopening the comment period. Accordingly, the FAA 
reopened the comment period for the SNPRM, published at 81 FR 45872, 
for 30 days. When the FAA reopened the comment period, the agency 
stated that the most helpful comments would: provide only data and 
information that was not previously submitted to the rulemaking docket; 
reference a specific portion of the proposal; and explain the reason 
for any recommended change, including supporting data. The reopened 
SNPRM comment period closed on September 23, 2021.

G. General Overview of Comments

    The FAA received submissions from commenters in 2016 and 2021 in 
response to the SNPRM. The FAA received comments from 38 commenters 
during the 2016 comment period, and 17 commenters during the comment 
period that it reopened in 2021. In general, the 2021 comments were 
similar to the 2016 comments, and were from many of the same commenters 
that commented during the 2016 comment period. This preamble identifies 
comments that were received in 2021 and comments that were received in 
both 2016 and 2021 by indicating the year the comment was received. Any 
comments for which the preamble does not note a year were received in 
2016.
    Although most commenters were certificate holders, some were air 
carriers, consultants, academics, and individuals. The following 
industry associations submitted comments: Airlines for America (A4A), 
Airports Council International-North America (ACI-NA), American 
Association of Airport Executives (AAAE), Helicopter Association 
International (HAI), and the National Business Aviation Association 
(NBAA). The comments addressed the following areas of the proposal:
     Applicability;
     Implementation;
     Non-movement area;
     Data protection;
     Safety reporting and interoperability;
     Training and orientation;
     Accountable executive;
     Definitions; and
     Miscellaneous topics.

III. Discussion of Public Comments and Final Rule

A. Applicability

(1) General Applicability
    The majority of airport and industry commenters submitted comments 
about the FAA's preferred alternative for the applicability of the 
rule. Instead of applying the SMS rule to all certificated airports, 
the SNPRM amended the proposed applicability to cover only certificate 
holders identified as (a) large,

[[Page 11648]]

medium, or small hubs; (b) having more than 100,000 total annual 
operations; or (c) having international services (triggers (a) through 
(c) are hereinafter referred to collectively as, the ``preferred 
alternative'').
    Most commenters generally supported the use of the hub 
classification as a trigger for the applicability of this final rule. 
However, smaller airports and industry associations questioned the 
operational and international triggers.
    One commenter disagreed with the FAA's revised approach, instead 
suggesting the FAA require SMS for all certificated airports, as 
proposed in the NPRM. The commenter believed that applying SMS to a 
select number of airports could create two levels of safety for 
airports. The FAA disagrees. The FAA has determined that its approach 
achieves the most safety benefits in the least burdensome manner, while 
also strengthening its alignment with international standards. 
Consistent with other provisions of part 139, this approach relieves 
relatively small airports from compliance costs when the safety 
benefits are lower. These small airports have the opportunity to 
voluntarily implement a SMS, if they believe it is beneficial to their 
operations.
    The FAA continues to encourage airports not certificated under part 
139 and part 139 certificate holders that are not subject to this final 
rule to voluntarily implement SMS and has made Federal funding 
available for SMS Manuals and Implementation Plan development.
    Commenters also proposed alternate frameworks for SMS 
applicability. For example, some commenters suggested SMS be required 
on a case-by-case basis. The FAA disagrees with these suggestions 
because these alternative frameworks would generally cause ambiguity as 
to when a certificate holder would be required to comply with the SMS 
requirements. In the case-by-case example referenced above, suggested 
application of SMS may be regarded as a punitive measure FAA could use 
to address a certificate holder failing to comply with part 139 
requirements. The perception of using SMS as an enforcement tool, 
contradicts the non-punitive, safety culture critical to a SMS. The 
FAA's actual intent is for SMS to serve as a risk-based tool targeting 
highest-risk areas. A case-by-case approach would also be highly 
subjective because of the unique conditions of each non-compliance 
issue.
    Another commenter suggested that the FAA exclude airports holding a 
Class IV AOC from the preferred alternative. A Class IV airport is an 
airport certificated to serve unscheduled passenger operations of large 
air carrier aircraft. A Class IV airport cannot serve scheduled large 
or small air carrier aircraft. The FAA disagrees that Class IV airports 
should be completely excluded, as they serve air carrier aircraft. If a 
Class IV airport meets one of the triggers because it could serve a 
large number of air carrier \11\ operations or host international 
operations, it meets the standard identified through the risk-based 
approach. As discussed later, if a Class IV airport is only identified 
under the international trigger, the certificate holder may obtain a 
waiver from the SMS requirements if it meets all of the conditions 
established in Sec.  139.401(d).
---------------------------------------------------------------------------

    \11\ See Sec.  139.5, definition of large air carrier aircraft.
---------------------------------------------------------------------------

    One comment received during the 2021 comment period recommended 
allowing for a single SMS for use in multi-airports systems. The FAA 
agrees with this recommendation, and notes that the regulations allow 
this use, provided that each airport can still meet the requirements of 
this final rule.
    Finally, one commenter observed the preferred alternative could 
result in certain airports used by air carriers as alternate or 
emergency airports not being subject to the SMS requirement. This 
observation is correct: airports designated as an alternate airport are 
subject to part 139 requirements only if they fulfill one of the 
triggers.
(2) Triggers
    (i) Hub trigger: In the SNPRM, the FAA proposed using data from the 
National Plan of Integrated Airport Systems (NPIAS) to identify which 
certificate holders would qualify under the hub trigger. One commenter 
stated that there is a lag between when NPIAS data is gathered, 
published, and becomes publicly available. While the commenter 
requested the FAA use a different data source to determine hub 
applicability, it also asked the FAA to report SMS applicability within 
the biennial NPIAS Report to Congress. The FAA partially agrees with 
these requests. The FAA will use the annually updated Enplanements at 
All Airports (Primary, Non-primary Commercial Service, and General 
Aviation) by State and Airport data available on FAA.gov to determine 
hub applicability. The FAA pulls this data from the Air Carrier 
Activity Information System (ACAIS), an FAA database containing data 
reported by the air carriers to the U.S. Department of Transportation, 
Bureau of Transportation Statistics. The FAA has used ACAIS since the 
1980s to categorize airports based on enplanements and determine 
entitlement funding under the Airport Improvement Program. The FAA 
shares this data with airports annually and uses it to inform the NPIAS 
report. The FAA does not plan to add information about SMS 
applicability to the NPIAS (e.g., adding a column/field to indicate 
whether the airport is required to implement SMS) as inconsistencies 
might exist due to a reporting lag. Instead, the FAA will maintain a 
separate list of airports required to implement SMS on our public 
website, FAA.gov.
    (ii) Operations trigger: In the SNPRM, the FAA proposed using 
operational data submitted through FAA Form 5010-1, Airport Master 
Record. To determine which airports would be subject to the SMS 
requirement under this trigger, the FAA used a ``snapshot'' approach, 
gathering operational data reported in the system on August 1, 2012. 
Commenters requested changes to either the operations trigger or the 
source data. Commenters also expressed concerns about the FAA's 
snapshot approach, explaining that multiple factors could cause airport 
operations to vary on a yearly basis, causing an airport to exceed 
100,000 operations for a particular year but fall below the trigger 
threshold in the preceding or following years.
    The FAA agrees with commenters' concerns about the snapshot 
approach. Therefore, the FAA will use a 3-year rolling average to 
determine applicability under the operations trigger.
    Accordingly, this final rule retains the operations trigger with 
minor modifications. This final rule will not use FAA Form 5010-1 as 
the sole source of data used to determine who qualifies under the 
operations trigger. Instead, the FAA will use the following: (a) 
traffic counts reported by the Air Traffic Control Tower through FAA 
Operations Network (OpsNet) for airports with FAA or contract towers; 
(b) FAA Form 5010-1 data for non-towered airports; or c) other FAA-
validated counting systems. Historical OpsNet data is publicly 
available through FAA.gov.
    Lastly, the final rule adds a clause to Sec.  139.401(a)(2) to 
clarify that operations for the purposes of this trigger mean the sum 
of all arrivals and departures. This addition does not change the 
meaning of operations as it is used in the context of the operations 
trigger and as it was proposed in the SNPRM, but merely provides 
additional clarity.
    (iii) International trigger: In the SNPRM, the FAA proposed 
requiring SMS at all airports with international

[[Page 11649]]

services, specifically: (a) those identified as a port of entry (under 
19 CFR 101.3), (b) designated international airports (under 19 CFR 
122.13), (c) landing rights airports (under 19 CFR 122.14), or (d) user 
fee airports (under 19 CFR 122.15). Seven commenters expressed general 
concern that small airports with Customs and Border Protection (CBP) 
facilities accommodating international general aviation traffic, not 
scheduled air carrier operations, are unnecessarily included in the 
international trigger. Several commenters recommended that the FAA 
should only require airports with scheduled international service to 
have SMS. In 2021, commenters reiterated concerns about the SMS 
requirements that would apply to airports under this particular 
trigger.
    The FAA requested comments on alternate methods for identifying 
international airports, since the FAA no longer maintains Advisory 
Circular 150/5000-5, Designated U.S. International Airports.
    Commenters had mixed responses to the Agency's use of CBP's Guide 
for Private Flyers list. Many requested the FAA not use the list 
because it is outdated and is not hosted by the Agency. One commenter 
recommended the FAA modify FAA Form 5010-1 to include a new field for 
certificate holders to self-report the availability of international 
services. Some commenters requested the FAA establish a joint 
government/industry task force to assess the accuracy of CBP's lists 
and develop another method to identify international status, which 
could include self-reporting by airports.
    The FAA also agrees with commenters' concerns about the data source 
for international applicability. It does not appear that any one data 
source document contains the most up-to-date list of airports with 
international services. Therefore, this final rule removes reference to 
CBP regulations. Instead, the FAA will use appropriate available 
sources of data to determine applicability under this trigger. In 
addition to CBP regulations, the Agency will use CBP website 
information and the private flyers list of available airports. The 
combined use of these lists provides a more comprehensive source of 
information to determine which airports host international services. 
The FAA determined that it is unnecessary to establish a joint 
government/industry task force to develop this information since it is 
available directly from CBP. The FAA will defer to the expert agency 
and will not question the accuracy, data gathering systems, analysis, 
or processes of CBP. As previously stated, the FAA intends to maintain 
the master list of qualified airports. The FAA determined that it is 
unnecessary to note this applicability in other lists such as the FAA 
Form 5010-1 database or the NPIAS because doing so could lead to 
inconsistent data due to potential reporting lags.
    The FAA also agrees with comments submitted in 2016 and 2021 that 
the intent of the international trigger is not to impose a burdensome 
regulation on certificate holders with international service 
capabilities aimed exclusively at general aviation traffic. Thus, the 
FAA incorporated a provision into this final rule allowing airports 
hosting international services exclusively for general aviation traffic 
to obtain a waiver from the SMS requirement. An airport may obtain a 
waiver as long as there is no tenant at the airport that is required to 
comply with a SMS requirement imposed by any applicable law or 
regulation of its country of origin (i.e., the jurisdiction that issued 
the operator's air carrier certificate, air operator certificate, or 
equivalent) or any other applicable governing jurisdiction.\12\ To 
obtain a waiver, a certificate holder must submit a formal, written 
request to the appropriate FAA Regional Airports Division Manager 
justifying its waiver request, pursuant to Sec.  139.401(d). As 
discussed later in the preamble, FAA estimates that approximately 74 
airports would meet this provision and be eligible to apply for a 
waiver.
---------------------------------------------------------------------------

    \12\ If an airport has any tenant required to implement a SMS 
pursuant to any foreign law or regulation, such foreign jurisdiction 
could prevent the tenant from operating into, or out of, a U.S. 
airport that does not have a SMS.
---------------------------------------------------------------------------

    The FAA recognizes that an airport's status could change based on 
the turnover of tenants conducting business at any given moment. For 
certificate holders granted a waiver, this final rule (Sec.  
139.401(d)) requires the certificate holder to report to the FAA 
whether it has had any change in international air carrier service that 
affects the applicability of part 139 SMS requirements every 2 years.
    The FAA also received comments in 2016 and 2021 alleging the 
framework did not comply with ICAO standards. The FAA concludes that 
ICAO Annex 14 identifies standards and recommended practices that 
address certificated airports with international air carrier service. 
This final rule's international trigger framework is consistent with 
the overarching intent of the international standards.
(3) Authority To Implement Triggers
    Several commenters asserted that the FAA does not have sufficient 
authority to implement the proposed triggers. As stated in the SNPRM, 
the FAA has sufficient statutory authority under Title 49 of the United 
States Code, Subtitle VII, part A, subpart III, section 44706, 
``Airport operating certificates,'' as well as section 44701, ``General 
requirements,'' and section 44702, ``Issuance of certificates,'' to 
require SMS at any certificated airport--including those identified as 
having international services.
(4) Annual Review of Applicability
    The FAA was asked to clarify: (a) the timeline and process for 
reviewing the final rule's applicability to an airport; (b) how the FAA 
will review each airport's status including when the review will occur; 
and (c) how much time a newly identified airport would have to comply 
with this final rule.
    The FAA plans to conduct its annual applicability review at the end 
of each calendar year after this final rule becomes effective. After 
each annual review, the FAA will post a list of qualifying airports on 
FAA.gov and send airports that qualify due to a status change a letter 
notifying them of their qualification.
    This final rule requires a newly qualified airport to submit its 
Implementation Plan within 18 months from notification of qualification 
by the FAA (see Sec.  139.403(a)(4)). After the FAA approves the 
Implementation Plan, the certificate holder has 12 months to submit its 
SMS Manual and/or ACM update and 36 months to fully implement SMS.
    For an airport that initially qualified under any of the triggers 
but no longer qualifies due to a status change, the certificate holder 
will be required under Sec.  139.401(h) to continue to develop, 
implement, maintain, and adhere to the SMS for the longest of either 24 
consecutive calendar months after full implementation; or 24 
consecutive calendar months from the date it no longer qualifies under 
Sec.  139.401(a). Additionally, some airports may cross the threshold 
of the 100,000 operations criteria from one year to the next. The 24 
consecutive calendar months ensure greater continuity and 
predictability in the airport's SMS. The FAA determined 24 calendar 
months was the minimum time that would be necessary to accurately 
validate the withdrawal of the triggering requirements. FAA believes a 
period beyond 24 consecutive calendar months would be overly burdensome 
to airport operators.

[[Page 11650]]

    If at any time during the application process for an AOC, an 
airport operator becomes subject to this final rule under any of the 
triggers identified in Sec.  139.401(a), then the FAA expects that such 
airport operator will develop a SMS simultaneously with the development 
of its certification program. The FAA does not expect the 
Implementation Plan requirement for airport operators seeking an AOC 
under Sec.  139.103 to create an additional burden because the FAA 
anticipates that the process will occur simultaneously with the 
certification process.

B. Implementation

    Nearly every commenter from both 2016 and 2021, including 
certificate holders, industry associations, and consultants, commented 
on the FAA's proposed timeline for submission of the certificate 
holder's Implementation Plan, SMS Manual, ACM update, and full 
implementation. While most agreed the amended proposal for submitting 
the Implementation Plan and SMS Manual was acceptable, none thought a 
certificate holder could be fully implemented within 2 years. 
Commenters from the 2021 comment period requested further clarity on 
how the final rule would affect existing SMS programs. The final rule 
supplemental guidance incorporates more detail for airports 
implementing an existing SMS into their part 139 compliance program.
(1) Phased Implementation
    In the SNPRM, the FAA addressed comments to the NPRM requesting the 
FAA mandate a phased approach to implementation. This would entail 
setting different regulatory timelines for implementation based upon, 
for example, each SMS component, or requiring the implementation of the 
SMS in the movement area prior to non-movement areas. As explained in 
the SNPRM, to facilitate maximum flexibility and scalability, the FAA 
did not propose a one-size-fits-all implementation approach. A 
certificate holder is granted flexibility in structuring and fine-
tuning its Implementation Plan to best fit its operations and 
capabilities. Certificate holders are therefore able to phase 
implementation, either by SMS component or by movement versus non-
movement area, as long as they fully implement SMS by the required 
deadline.
    During both the 2016 and 2021 comment periods, commenters 
reiterated previous comments to the NPRM asking the FAA to require a 
phased approach and permit more time for implementation.
    The FAA maintains that it will not require airports to use a phased 
approach. This final rule is performance-based and allows flexibility 
in how the certificate holder implements SMS within the required 
deadlines. A certificate holder could choose to phase its 
implementation, as long as that phasing occurs within the full 
implementation deadline. The FAA addresses potential phasing options 
and considerations in the related AC, which takes into account 
experiences from pilot studies and other implementing countries. The AC 
is a guidance document and the FAA stresses that certificate holders 
may choose to pursue a phased approach--or not--and to structure their 
implementation to best fit their operations, needs, and capabilities.
    The FAA also acknowledges that safety assurance processes and 
procedures, including program evaluation and auditing, would require 
experience under the SMS to be meaningful. By the deadline for full 
implementation, the FAA expects a certificate holder to identify those 
safety assurance processes and procedures and a timeline for rolling 
out those activities identified in the SMS Manual or ACM; not actually 
apply those practices prior to full implementation.
(2) Staggered Implementation
    In addition to requesting a phased implementation, numerous 
commenters requested the FAA impose a staggered approach to 
implementation. The meaning and scope of ``staggered'' varied per 
commenter, but commenters focused on staggering by size and complexity 
of airport operations, by applicability triggers, or based on airport 
human and financial resources.
    The FAA agrees that a staggered approach will benefit industry 
implementation as well as FAA review and oversight. Therefore, this 
final rule staggers rollout of document submission and implementation 
requirements based on the applicability triggers. This approach 
conforms to commenters' requests to implement a staggered approach 
based on size and complexity of the airport's operation. By being the 
last to implement, smaller, less complex operations gain the ability to 
learn and seek advice from larger, more complex airports that already 
underwent the process. They will also have more time to identify 
resources and program appropriate funding, where needed.
(3) FAA Review of Documents
    The majority of commenters requested the FAA provide a detailed 
timeline for FAA review, and approval or acceptance, of the certificate 
holder's Implementation Plan and SMS Manual/ACM update. Several 
commenters specifically requested that this final rule include 
regulatory text imposing deadlines for FAA review. Commenters also 
requested the FAA conclude that if a certificate holder receives no 
feedback from the FAA Regional staff within a certain number of days 
after document submission (e.g., 60 or 90), then the Implementation 
Plan or SMS Manual should be deemed approved or accepted.
    Lastly, the FAA was asked to explain whether it expects a 
certificate holder who has already voluntarily implemented (or begun 
implementation of) a SMS to submit an Implementation Plan. The 
commenter suggested these airports conduct a gap analysis to determine 
gaps between their established programs and this final rule and submit 
a letter to the FAA summarizing those gaps.
    The FAA acknowledges the importance of approval of the 
Implementation Plan to full SMS implementation. Therefore, the 
deadlines for submission of the SMS Manual and/or ACM update and full 
implementation dates are calculated based on the FAA's approval of the 
Implementation Plan, rather than the effective date of this final rule. 
This approach is similar to the one used in part 5, except that it does 
not provide an absolute deadline by which the FAA must approve each 
Implementation Plan.
    On average, the FAA estimates it will take an inspector 60 days to 
review an Implementation Plan and 90 days to review a SMS Manual and/or 
ACM update. The FAA deems these estimates reasonable and achievable 
under the staggered implementation approach. FAA Regional inspectors 
will work closely with their team leads, managers, and Headquarters 
liaisons should any problem or question arise about the submission or 
review process. Furthermore, the change to how the deadlines are 
calculated (i.e., based on the Implementation Plan approval date) 
allows for more communication between the inspector and certificate 
holder, should changes be required.
    The FAA intends to leverage existing long-standing processes, 
whereby the FAA Regional inspectors work closely with the airport 
operator to review and approve submitted changes to their ACM. These 
processes are typically explained in FAA Orders, which are publicly 
available documents. FAA Order 5280.5, ``Airport Certification Program 
Handbook,'' will provide inspectors with guidance on how to

[[Page 11651]]

review, approve, and accept document submissions, and also inspect SMS 
implementation. Part 139 does not include a process for certificate 
holders to resolve disapproval of changes to their ACM, and the FAA has 
not added such a process in this final rule.\13\ The ACM review 
processes have historically been successful under the part 139 program.
---------------------------------------------------------------------------

    \13\ The FAA notes that part 5 also does not detail resolution 
of disapproval or non-acceptance.
---------------------------------------------------------------------------

    The FAA developed a standardized Implementation Plan template in AC 
150/5200-37A and has updated the material along with this final rule. 
Certificate holders are not required to use the template but are 
encouraged to do so to simplify and expedite FAA review and approval.
    A certificate holder is not required to submit changes to its 
approved Implementation Plan. As discussed in the SNPRM, the 
Implementation Plan serves as a tool to help certificate holders 
develop and implement the various components and elements of SMS within 
the prescribed and/or approved deadlines. Once approved, the FAA 
expects the certificate holder to make necessary adjustments to ensure 
compliance with the prescribed deadlines.
    Airports that have already voluntarily implemented SMS also must 
provide an Implementation Plan detailing how they will comply with this 
final rule. The FAA has determined that the Implementation Plan 
requirements are scalable, flexible and not overly burdensome. The 
certificate holder could use the AC guidance material and template to 
identify whether it has already completed the elements required under 
this final rule to assess any gaps between the final rule and its 
existing programs. Certificate holders may use an existing gap analysis 
as the basis for their Implementation Plan. However, the FAA would not 
accept a gap analysis alone, in lieu of the Implementation Plan.
(4) Timeline for Document Submission and Full Implementation
    The SNPRM proposed an amended schedule for submission of a 
certificate holder's-Implementation Plan (12 months after the rule's 
effective date) and the SMS Manual and/or ACM update (24 months after 
the rule's effective date). The SNPRM implied that full implementation 
would be completed as of the date the SMS Manual was submitted. Most 
commenters agreed the amount of time proposed for submitting the 
Implementation Plan and SMS Manual was acceptable. However, many 
commenters from the 2016 and 2021 comment periods believed that full 
implementation was unachievable within 2 years. Numerous comments 
supported ICAO's model allowing 3 years for full implementation, while 
others supported alternate timelines ranging from 3 to 8 years. One 
commenter during the 2021 comment period argued that the implementation 
period of 2 years was too long. Commenters during both the 2016 and 
2021 comment periods stated that by extending the timeline for full 
implementation, certificate holders would have more time to (a) amend 
existing tenant leases in non-movement areas, and change applicable 
leaseholds, contracts, policies and procedures; (b) work with State 
legislatures to protect SMS-related data; (c) implement based on FAA 
review and approval of the Implementation Plan; (d) effectively manage 
the number of hazards reported; (e) garner support and buy-in, hold 
partnering sessions with all stakeholders, and ensure that the written 
program will be positively received and accepted upon implementation; 
and (f) obtain local, state, or Federal funding to meet SMS 
requirements (e.g., to obtain consultant services, acquire software 
systems, etc.). One commenter from the 2021 comment period recommended 
that the FAA reconsider its submittal timelines for SMS Implementation 
Plans and Manuals/ACM SMS sections.
    The FAA agrees it is appropriate to increase the time allotted for 
full implementation. Thus, under this final rule, certificate holders 
qualifying under the hub trigger must be fully implemented 
approximately 4 years from the effective date of this final rule, plus 
any additional time that is required for FAA approval of the 
Implementation Plan. Because the FAA is using a staggered approach to 
submission of the Implementation Plan, certificate holders qualifying 
under the operations trigger have over 4.5 years and those qualifying 
under the international trigger have over 5 years to fully implement 
from this final rule's effective date.
    Table 3 depicts the timeline for submission of the Implementation 
Plan, SMS Manual and/or ACM update, and full implementation based on a 
trigger. It also provides an estimated full implementation date based 
on a 60-day FAA review and approval of the Implementation Plan. The 
only documents required for submission are the Implementation Plan and 
SMS Manual and/or ACM update.
    During the 2021 comment period, the FAA received several comments 
urging the FAA to reconsider SMS rulemaking and required implementation 
at this time due to the economic impact airports are facing as a result 
of the COVID-19 pandemic. The FAA recognizes the pandemic's impact on 
many airports; however, this rule's triggering criteria in Sec.  
139.401(a) account for factors that influence the triggers, such as the 
COVID-19 pandemic. The final rule also includes an implementation 
schedule based on the trigger and continues to be scalable and flexible 
to accommodate changes in airport operations. As previously addressed, 
Federal funding is also available for SMS Manuals and Implementation 
Plan development.

       Table 3--Timeline for Submission of the Implementation Plan, SMS Manual and/or ACM Update, and Full
                                         Implementation Based on Trigger
----------------------------------------------------------------------------------------------------------------
                                       Submit implementation    Submit SMS Manual and/
              Triggers                          plan                or  ACM update          Fully implement *
----------------------------------------------------------------------------------------------------------------
Large, medium, and small hubs.......  12 months from           12 months from date on   36 months from the date
                                       effective date.          which the FAA approves   on which the FAA
                                                                the Implementation       approves the
                                                                Plan.                    Implementation Plan.
+100,000 average annual operations..  18 months from           12 months from date on   36 months from the date
                                       effective date.          which the FAA approves   on which the FAA
                                                                the Implementation       approves the
                                                                Plan.                    Implementation Plan.
International airports..............  24 months from           12 months from date on   36 months from the date
                                       effective date.          which the FAA approves   on which the FAA
                                                                the Implementation       approves the
                                                                Plan.                    Implementation Plan.
----------------------------------------------------------------------------------------------------------------
*Approximate dates assume 60-day FAA review of Implementation Plan.


[[Page 11652]]

(5) Timeline for New Airports Qualifying After the Effective Date of 
This Final Rule, or Due to Changes in Status
    In the SNPRM, the FAA discussed SMS requirements imposed on: (a) 
airports that were subject to the rule at the time of the effective 
date of this final rule, and (b) airport operators requesting an AOC 
(newly certificated airports) after the effective date of this final 
rule. The FAA failed to address certain circumstances that could arise 
after the effective date of this final rule; particularly, when a 
certificate holder could become subject to, or no longer subject to, 
the requirements of this final rule due to a change in its hub, 
operations, or international status. In these instances, two commenters 
requested clarification of the timelines for submission of 
Implementation Plans, SMS Manuals and/or ACM updates, and full 
implementation.
    As further discussed in section A, ``Applicability,'' this final 
rule addresses these circumstances and requires the certificate holder 
to: (a) submit an Implementation Plan within 18 months of notification 
of qualification by the FAA; (b) submit a SMS Manual and/or ACM update 
within 12 months of Implementation Plan approval; and (c) fully 
implement a SMS within 36 months of Implementation Plan approval. This 
final rule also addresses circumstances in which a certificate holder 
no longer meets any of the qualification triggers. Section 139.401(h) 
requires the certificate holder to continue to develop, implement, 
maintain, and adhere to its SMS for the longest of either twenty-four 
consecutive calendar months after full implementation; or twenty-four 
consecutive calendar months from the date it no longer qualifies under 
Sec.  139.401(a). For illustration purposes only, assume a certificated 
airport qualified only under the international trigger due to the 
presence of a part 129 international carrier. If the international air 
carrier ceases operations at the airport, and if there are no other 
commercial international operations, then the airport no longer will be 
subject to the SMS requirements, but Sec.  139.401(h) requires the 
airport to continue to develop, implement, maintain, and adhere to its 
SMS for the longest of either twenty-four consecutive calendar months 
after full implementation; or twenty-four consecutive calendar months 
from the date it no longer qualifies under Sec.  139.401(a). Some 
airports may cross the threshold of the international flights criteria 
frequently. The FAA determined twenty-four calendar months was the 
minimum time that would be necessary to accurately validate the 
withdrawal of the triggering requirements. FAA believes a period beyond 
twenty-four consecutive calendar months would be overly burdensome to 
airport operators.

C. Non-Movement Area

    The FAA believes it is essential that SMS regulatory requirements 
apply to non-movement areas through part 139 because. . . . We received 
comments during the 2016 and 2021 comment periods from numerous 
entities, including associations, certificate holders, and air 
carriers, on the proposed application of SMS to non-movement areas. 
Except for a few notable exceptions, most disagreed with the FAA's 
proposal to include non-movement areas in an airport's SMS. Nearly all 
of these commenters suggested ways--through either regulatory text or 
preamble discussion--for the FAA to clarify its intentions with respect 
to applicability of SMS to non-movement areas and to improve the 
requirements to reflect the practicalities of airport operations.
    Several of these commenters from both the 2016 and 2021 comment 
periods also urged the FAA to resolve potential duplication and 
conflicts between the SMS of an air carrier tenant (i.e., a part 119 
certificate holder subject to part 5 SMS) and the SMS of an airport 
operator for activities conducted in leased facilities located in non-
movement areas. Commenters from both comment periods suggested that 
airport involvement in air carrier tenant leased areas could introduce 
new risks for air carriers because the air carriers would have to 
ensure compliance with different procedural mitigations at each airport 
they fly into. Commenters from both comment periods also addressed 
potential duplication and conflict for passenger operations in non-
movement areas. However, both airport and cargo operators indicated 
that operations on cargo ramps are unique since they are managed 
exclusively by cargo operators. Lastly, commenters from both comment 
periods asked the FAA to exclude non-movement areas subject to 
exclusive area agreements with the Transportation Security 
Administration (TSA), when the certificate holders have implemented 
SMS.
    The FAA received and considered the following suggestions to 
address the implementation in non-movement areas:
    1. Make SMS implementation in non-movement areas voluntary for part 
139 certificate holders;
    2. Apply SMS in the non-movement areas only for ``traditional'' 
airport responsibilities (e.g., infrastructure condition, driving, 
airport-provided or required marking and lighting, and public 
protection), and let air carriers or other third parties address other 
functions (e.g., pushback and towing, aircraft servicing, jet bridge 
operation, and baggage/cargo handling);
    3. Encourage (or require) part 139 certificate holders to implement 
SMS first in the movement area and then in the non-movement areas 
(phasing in areas in which the airport has complete control, areas in 
which the airport shares control, and areas in which a third-party has 
control);
    4. Permit part 139 certificate holders to exclude SMS applicability 
from areas specifically identified in the SMS Manual that are under the 
control of one or more air carrier tenants with part 5 SMS;
    5. Allow part 139 certificate holders to delegate their authority 
to their tenants to implement SMS in certain non-movement areas where 
the certificate holder can show the tenant has greater control, or 
limit the role of the airport operator in such areas to that of a 
``coordinator'';
    6. Permit part 139 certificate holders to delegate SMS oversight 
and responsibility to a designated senior official of each affected 
tenant; and
    7. Clarify whether the part 139 certificate holder SMS or the air 
carrier tenant SMS has precedence for safety issues in non-movement 
areas, subject to the SMS requirements of parts 5 and 139 (e.g., gate 
operations near aircraft, ground servicing vehicles, etc.).
(1) Regulatory Authority in the Non-Movement Area
    One commenter reasserted its argument--first brought forth in its 
comments to the NPRM--that the FAA lacks the necessary authority to 
regulate non-movement areas pursuant to 49 U.S.C. 44706. Another 
commenter stated the FAA has not offered a compelling reason to 
substantiate the proposed expansion of its regulatory oversight to non-
movement areas.
    The FAA has broad authority under 49 U.S.C. 44702 to issue AOCs. 
Under 49 U.S.C. 44706, the FAA can issue an AOC to a person desiring to 
operate an airport if it finds that the certificate holder ``properly 
and adequately is equipped and able to operate safely under this part 
and regulations and standards prescribed under this part.'' 
Furthermore, 49 U.S.C. 44701(c) allows the FAA to regulate to ``reduce 
or eliminate the possibility or recurrence of accidents in air 
transportation.''
    The FAA acknowledges that the majority of the quantified benefits

[[Page 11653]]

related to wildlife strikes are primarily occurring in the movement 
area, which make up about 50 percent of benefits. However, the FAA has 
identified numerous safety concerns, events, accidents, and incidents 
in non-movement areas that constitute hazards and may reasonably 
contribute or lead to accidents in air transportation (examples of 
which are discussed both later in the preamble as well as in the 
accompanying RIA). Instituting SMS in movement and non-movement areas 
is consistent with the FAA's authority and safety mission, because it 
provides significant benefits and contributes to the reduction or 
elimination of the possibility of recurrent air transportation related 
accidents.
    In one example, discussed further in the RIA, an airport identified 
a hazard to passengers walking on a ramp between parked aircraft and 
the terminal. The airport mitigated the hazard by adding pavement 
markings to guide passengers along a safe path between aircraft and the 
terminal. In another example, an airport identified a trend regarding 
collisions between moving aircraft wingtips or service vehicles and the 
tails of stationary aircraft parked at gates. The airport mitigated the 
hazard using pavement markings as a clear indicator for ramp wing-
walkers and marshallers to maintain proper clearances.
    The regulatory evaluation of this final rule provides additional 
examples of past events that justify the need for implementation of SMS 
in non-movement areas. See Section IV, Benefits, in the regulatory 
evaluation for this rule. Accidents and incidents continue to occur. 
For example, during the 2-month period encompassing January and 
February 2017, a large hub airport reported four damaging incidents in 
the non-movement area. Two of the incidents occurred during pushback, 
and all four incidents involved vehicle movements or safety personnel 
required to monitor such movements. In February, May, and July 2017, a 
second large hub airport (owned and operated by the same entity) 
reported three more damaging incidents in the non-movement area, 
similar to those experienced at the first airport.
    Furthermore, as discussed in the SNPRM, and in direct support for 
instituting SMS in non-movement areas, pilot studies found that it was 
difficult to apply SMS concepts only to the movement area because 
aircraft and airside personnel routinely flow between movement and non-
movement areas. Airport operators and/or airport owners currently have 
sufficient authority to implement the training, safety reporting, and 
Safety Risk Management (SRM) processes required in this final rule, as 
well as to undertake the additional responsibility and burden in the 
non-movement area that will result from this rule, including potential 
development of new expertise in this area.
(2) Inclusion of Fuel Farms, Baggage-Makeup, and Military Areas
    A commenter argued against the inclusion of fuel farms as part of 
the SMS requirements. The FAA disagrees that SMS implementation in fuel 
farms should be voluntary for airports. As stated in the SNPRM, fuel 
farms are regulated under Sec.  139.321 as part of the certificate 
holder's AOC. Therefore, it is a natural progression to implement 
relevant portions of the SMS in the fuel farm environment.
    Another commenter requested the FAA include baggage-makeup areas 
within the definition of non-movement area. The FAA previously 
responded to issues about applicability to baggage-makeup areas in both 
the ``Responses to Clarifying Questions (to the NPRM)'' and the SNPRM. 
The FAA continues to disagree with including baggage-makeup areas 
explicitly within the definition of non-movement areas. At the majority 
of airports, these areas are located in the terminal environment. The 
purpose of addressing non-movement areas in SMS is to address 
conditions, events, incidents, or accidents that could potentially 
threaten, or harm, passenger-carrying operations, and to reduce or 
eliminate the possibility of recurrence of accidents in air 
transportation (as authorized by 49 U.S.C. 44701, 49 U.S.C. 44702, and 
49 U.S.C. 44706). However, if a baggage-makeup area is located outside 
the landside facilities--in proximity to air carrier operations--the 
certificate holder would need to ensure the implementation of relevant 
portions of this final rule, like awareness of the safety reporting 
system for individuals working in the external baggage-makeup areas. 
The ``non-movement area'' definition covers these rare instances 
without explicitly identifying baggage-makeup areas.
    The FAA addressed certain issues about joint-use airport facilities 
in the NPRM and SNPRM. Notwithstanding, several commenters--including 
various certificate holders--stated the SNPRM was unclear with respect 
to non-movement areas that are under the exclusive control of the 
military or other governmental entities. The FAA maintains its position 
that non-movement areas under the exclusive control of military units 
or other governmental agencies are excluded from the applicability of 
SMS requirements. This exclusion will apply to military facilities at 
joint-use airports or leased areas at joint-use airports. All such 
areas must be identified in the SMS Manual and/or ACM update, and the 
certificate holders should include the exclusion in any ``lease and use 
agreement''--or similar legal instrument--with applicable military 
units or governmental agencies. Certificate holders can--at their own 
initiative--promote the voluntary inclusion of the military and 
governmental bodies in SMS-related activities and programs.
(3) Inconsistency With ICAO Standard
    A commenter noted that ICAO Annex 19, Appendix 2, states an 
``organization's SMS should identify hazards and mitigate risks 
associated with its products or services.'' It argued that an airport's 
SMS should only be applicable to products or services provided by the 
airport or its contractors, meaning that services provided in non-
movement areas by parties other than the airport operator would not be 
covered (e.g., baggage handlers or provisioning crews). The commenter 
believed the FAA's proposal is inconsistent with this international 
standard and may lead to negative consequences.
    The FAA does not agree with the commenter's interpretation. ``Note 
2'' of Amendment 1 to ICAO's Annex 19 states: ``the service provider's 
interface with other organizations can have a significant contribution 
to the safety of its products or services.'' Section 2.1.1 of Appendix 
2 states: ``the service provider shall develop and maintain a process 
to identify hazards associated with its aviation products or 
services.'' Furthermore, pursuant to section 2.1.2: ``hazard 
identification shall be based on a combination of reactive and 
proactive methods.''
    The sections referenced above evidence and recognize the complexity 
of certain operations (i.e., airport operations). The interface between 
a service provider and other organizations can significantly contribute 
to the safety of the service provider's products or services. Airport 
operations are complex, and certain actions occurring in movement and 
non-movement areas could pose a threat to the safety of aircraft and 
air transportation. Airports should consider all conditions that could 
pose a threat or hazard to the airport's operations, whether partly or 
completely located in the movement or non-movement areas. This is not 
an issue of where the hazard occurs, but if

[[Page 11654]]

it could occur. Conditions in the non-movement areas could constitute 
hazards because they can foreseeably lead--or be part of a chain of 
events that leads--to aircraft accidents (e.g., An aircraft taxis over 
wheel chocks left on the ramp, causing damage to the aircraft's nose 
wheel spray deflector. The damaged deflector prevents extension or 
retraction of nose gear after takeoff, causing an emergency diversion 
and nose gear-up landing.\14\
---------------------------------------------------------------------------

    \14\ Ref. https://www.asias.faa.gov/apex/f?p=100:17:::NO::AP_BRIEF_RPT_VAR:CHI01FA270.
---------------------------------------------------------------------------

    Based on the above, and on the FAA's authority to regulate the non-
movement area pursuant to 49 U.S.C. 44701, 44702, and 44706, the FAA 
determined the regulation of the non-movement area for SMS purposes is 
consistent with ICAO standards.
(4) Air Carrier Operations in Non-Movement Areas
    Commenters that commented during both the 2016 and 2021 comment 
periods were confused about the applicability of SMS regulatory 
requirements in non-movement areas. Some air carriers and airport 
operators believed the SMS requirements proposed in the SNPRM would 
duplicate requirements already imposed on air carriers through part 5. 
These entities believed the part 139 final rule should exclude non-
movement areas under the exclusive control of air carriers since they 
are already covered through the air carrier's SMS.
    The part 5 final rule limited the FAA's oversight of the air 
carrier's SMS to aviation activities conducted under part 121. The FAA 
acknowledged in the preamble of the part 5 final rule that some air 
carriers may opt to extend their SMS to other aviation and non-
aviation-related activities. The FAA clarified that it would only 
conduct oversight of SMS activities related to aviation operations that 
the air carriers conduct under part 121. Many air carriers have 
voluntarily extended their SMS to include ramp operations, but these 
programs are not required to comply with part 5, nor are they inspected 
by the FAA.
    The part 5 final rule also narrowed the definition of the term 
``hazard'' to ensure consistency with the NTSB's definition of 
``aircraft accident.'' Accordingly, the part 5 definition of ``hazard'' 
involves a condition that could foreseeably cause or contribute to an 
aircraft accident as defined in 49 CFR 830.2. An ``aircraft accident'' 
is defined as: ``an occurrence associated with the operation of an 
aircraft which takes place between the time any person boards the 
aircraft with the intention of flight and all such persons have 
disembarked, and in which any person suffers death or serious injury, 
or in which the aircraft receives substantial damage.'' By limiting the 
scope of the definition of ``hazard'' in part 5, the FAA's oversight is 
narrowed to the air carrier's operation.
    The FAA notes that certain aspects of an air carrier's operations 
conducted in non-movement areas are not subject to the provisions of 
part 121. Similarly, unfavorable occurrences, which could lead to an 
accident, injury, or damage, may not involve an aircraft with the 
intention of flight but could still be of concern to an airport 
operator. As previously discussed, the need for proactive safety 
management in the non-movement area is evidenced by the large number of 
safety accidents and incidents in non-movement areas. Therefore, the 
FAA believes it is essential that SMS regulatory requirements apply to 
non-movement areas through part 139.
    The FAA Office of Airports' (ARP) oversight and inspection related 
to application of the SMS to non-movement areas will focus on the 
airport operator's processes and practices to ensure proactive safety 
management, since ARP inspectors are not authorized to inspect air 
carrier operations for compliance with part 5, 119, or 121.
    As for implementation of SMS in non-movement areas, the FAA does 
not agree that it should be voluntary or dictated by regulation (see 
section B, ``Implementation''). However, the FAA agrees that additional 
flexibility--to facilitate compliance with the requirements for SMS 
implementation in non-movement areas--will be beneficial to account for 
unique contractual, business, or operational arrangements involving air 
carrier tenants required to implement SMS. For example, the airport 
operator could establish a means for air carriers' tenants to share 
with the airport any reports, safety information, and analysis relevant 
to the air carrier's operations in the movement and non-movement areas 
of the airport. The air carrier tenant employees could file the 
information through the airport's safety reporting system. However, the 
flexibility of this final rule allows for--but does not require--the 
certificate holders to enter into an arrangement in which air carrier 
tenant employees continue using their employer's confidential employee 
reporting system (See 14 CFR 5.71(a)(7)) to communicate relevant safety 
data and reports, as long as the air carrier tenant shares relevant 
information derived from such reports or findings with the airport. 
Section 139.401(e) affords certificate holders such flexibility by 
alleviating duplicative reporting and encourages sharing of information 
by addressing interoperability issues between the regulated entities. 
If the part 139 certificate holder chooses to develop a Data Sharing 
and Reporting (DSR) Plan, this option is available.
    A certificate may develop a DSR Plan as a means of compliance with 
Sec.  139.401(e). If the certificate holder chooses this means of 
compliance, the DSR Plan must include, as a minimum: (a) the types of 
information (e.g., hazard reports, investigation findings, etc.) the 
airport operator expects the air carrier tenants to share if they are 
reported through their part 5 confidential employee reporting system or 
other hazard collection means; (b) the timeliness of sharing relevant 
safety data and reports; (c) the process for analyzing joint safety 
issues or hazards; (d) other processes, procedures, and policies to aid 
the part 139 certificate holder's compliance with its obligations under 
the airport SMS; and (e) the identification of means by which the 
requirements of the plan will be executed (e.g., private agreement, 
internal bylaws, internal regulations, internal policies, memorandums 
of understanding, etc.). The part 139 certificate holder may choose to 
incorporate the DSR Plan into the ACM or SMS Manual.
    Establishing a DSR does not necessarily require any additional 
capital investment by the airport or the tenant to facilitate data 
sharing as Sec.  139.401(e) does not prescribe how data sharing should 
occur (for example, data sharing could be achieved through routine 
meetings between the airport and the part 121 air carrier). A DSR might 
also reduce the total amount of incidents that would otherwise be 
reported to the airport, as the DSR Plan may allow for a tenant, 
through its own internal reporting system and SMS, to analyze and 
mitigate reported hazards that it determines do not require further 
analysis or mitigation by the airport.
    Airport operators must work with air carrier tenants that chose to 
participate in the DSR Plan to ensure they agree to the terms it 
established. The FAA stresses that the development and participation in 
the DSR Plan is voluntary both for the airport operator and air carrier 
tenants. Airports that develop a DSR Plan may encourage participation 
by, among other things, reminding air carrier tenants of the benefits 
afforded through the DSR Plan, such as relief from duplicative 
reporting.

[[Page 11655]]

    The DSR Plan affords the airport operator flexibility in how it 
engages applicable air carrier tenants. This final rule does not 
dictate the means by which the airport operator must carry out the 
provisions; rather, it requires airport operators choosing this option 
to describe how they will implement the provisions. For example, an 
airport operator may have sufficient rights and powers to institute 
requirements such as data sharing through airport issued rules, 
regulations, or policies. In other cases, an airport operator may need 
to enter into a private agreement or amendment to an agreement or an 
internal directive or guideline to implement such provisions. The part 
139 certificate holder will simply identify the means by which it will 
implement the minimum requirements of the DSR Plan to allow for the 
sharing of information (e.g., private agreement, rules and regulations, 
memorandum of understanding, etc.). It will not have to incorporate the 
agreements, rules, or other provisions into the DSR Plan.
    Regardless of the existence or form of delegation, the FAA 
emphasizes that the burden of compliance with the regulatory 
requirements established by this final rule rests solely on the part 
139 certificate holder. Any failure of an air carrier tenant to uphold 
any term or condition established in an arrangement or agreement 
between the air carrier tenant and the part 139 certificate holder that 
is used to carry out the provisions of the DSR Plan is not a valid or 
reasonable justification for lack of compliance with the 
regulation.\15\
---------------------------------------------------------------------------

    \15\ The FAA notes that the scope of oversight burden under this 
final rule is not different than current requirements in part 139. 
Airports are currently responsible for compliance in all areas 
covered under part 139 and the airport ACM. Moreover, almost every 
part 139 airport is federally obligated through the federal grant 
program and is required to meet certain federal grant assurances 
including the requirement to operate in a safe and serviceable 
manner. The oversight expectations present under existing part 139 
rules are sustained in this final rule; the SMS process simply 
establishes a systematic approach to the airport's already-existing 
responsibilities and helps mitigate incidents or accidents that may 
occur.
---------------------------------------------------------------------------

    Further, an FAA inspector could request to inspect the optional 
documentation (e.g., private agreement, internal bylaws, internal 
regulations, internal policies, memorandums of understanding, etc.) 
referenced in the DSR Plan, whenever the FAA determines--or has 
reasonable belief--that the airport is not complying with related 
provisions of the regulation. The inspection of the documentation 
facilitates the FAA's assessment of compliance with the regulation and 
the FAA's understanding of the delegation of responsibilities among the 
parties. Therefore, the FAA recommends that certificate holders include 
a clause or provision in such agreements or documents that all parties 
involved facilitate access to the FAA for the review of the agreements 
or documents--at the FAA's request--so the FAA can assess compliance 
with all applicable regulatory requirements when in question. As 
discussed in Section D, Data Protection, the FAA may request additional 
SMS-related data or information under existing regulatory oversight 
processes to ensure that systemic or national compliance issues are 
reported when appropriate. In most cases, the FAA will review requested 
documents while on the airport. The only time the FAA will take 
physical possession of SMS-related data off airport will be as part of 
an investigation. Otherwise, the part 139 certificate holder will 
retain all other SMS-related information.
    Airport operators executing a DSR Plan with a tenant would not be 
required to make their safety reporting systems available to the 
tenants or tenant's employees for safety reporting purposes. The 
airport operators would also not be required to extend their SMS 
training or make available SMS materials to the tenant's employees if 
the tenant's SMS covers such training or materials.

D. Data Protection

    Most commenters to the SNPRM that commented during both the 2016 
and the 2021 comment periods, including certificate holders, 
associations, and air carriers, claim the FAA has not adequately 
considered the effects that a lack of data protection will have on SMS 
implementation. Commenters asked the FAA to take action to protect from 
public disclosure SMS-related information such as hazard reports, 
safety risk management documentation, investigations, and Safety 
Assurance reports. Without Federal action, these commenters believed a 
lack of data protection could significantly impact the effectiveness of 
the certificate holder's safety reporting system and overall SMS.
    A commenter noted that airport operators generally have greater 
difficulty than air carriers in protecting against the disclosure of 
safety information because most airports are owned and operated by 
governmental entities that may be subject to a state's freedom of 
information laws. In the absence of effective protection mechanisms, 
most certificate holders could be required to disclose safety data 
gathered as part of their SMS.
    The FAA was asked to provide guidance on the appropriate way to 
handle open records act and Freedom of Information Act (FOIA) 
obligations if an airport operator comes into possession of, or has 
access to, air carrier SMS information. A commenter stated that if the 
FAA intends for safety reporting to be independent of other 
governmental functions, it must explicitly include language in this 
final rule that prohibits the airport operator from sharing information 
with other government entities, notwithstanding any contrary local or 
State requirements or law. Another commenter mentioned that airport 
operators may not have authority to ignore non-safety implications of 
data they receive in connection with shared SMS data. A commenter from 
the 2021 comment period requested that the FAA codify a FOIA exemption 
for SMS reporting.
    The FAA assessed various suggestions for dealing with potential 
data protection issues:
(1) State-Level Fix
    Two commenters believed that if the FAA finds a way to provide 
Federal protection, existing state legislation (in some states) would 
grant similar protection. One of the commenters stated that the FAA 
would have to opine that grant-obligated airports are required to keep 
confidential those records collected in compliance with a SMS rule, 
thus allowing protection under its state's open records laws. However, 
another commenter explained that its state's existing public records 
laws are broad and would not protect any data submitted to the 
airport's safety reporting system. While these commenters are not 
averse to working with their state legislatures to ensure protections, 
they request additional time for implementation to address these 
issues. In 2021, one commenter requested an exclusion of SMS-related 
data from state level public records requests in the final regulation, 
provided the FAA determines it has the authority to create such an 
exclusion.
    In contrast, two commenters disagreed with the State-level fix, 
explaining that the FAA has underestimated the monetary and schedule 
challenges posed by putting the onus on the certificate holder to work 
with state authorities. The commenter also believes a patchwork of 
different protection standards is not conducive to the success of the 
SMS effort.
    The FAA recognizes that most certificate holders are owned by 
public entities, whether it is a State, a subdivision of a State, a 
local

[[Page 11656]]

governmental body or other similar entity. Certificate holders are in 
the best position to seek legal guidance to determine the most 
appropriate way to handle and protect data and information gathered. 
They should assess applicable State legal frameworks to determine how 
to comply with data privacy laws and reporting requirements. (For 
example, SMS data that is required to be redacted as part of a 
disclosure requirement might also be subject to applicable State law.) 
Furthermore, certificate holders have the ability to evaluate whether 
States afford data and information protection mechanisms through local 
statutes and regulations or through other legal or contractual 
arrangements such as confidential disclosure agreements. Notably, the 
FAA does not have the authority to preempt State freedom on information 
laws without a congressional mandate. The FAA is also not in a position 
to assess any State's legal framework, to impose any requirement to 
create or implement State laws and regulations to protect data and 
information, or to counsel about handling and protection of data shared 
amongst third parties. Thus, the FAA cannot determine whether FOIA 
exceptions preclude disclosure requirements under applicable State 
laws, or if other laws, regulations, or contractual arrangements would 
preclude disclosures made amongst third parties.
(2) Federal-Level Protection
    Commenters from the 2016 and 2021 comment period re-stressed their 
assertions that existing Federal protections could be used to protect 
SMS data. Commenters disagreed with the FAA's finding that data 
protection under SSI provisions is inapplicable and may be 
impermissible because those procedures are for information obtained or 
developed in the conduct of security activities as described in 49 CFR 
part 1520. The commenters argued that hazard reports and SRM processes 
could identify airport vulnerabilities. Another commenter believed the 
FAA should commit to using the provisions of 49 U.S.C. 44735(b)(4) to 
assist certificate holders in securing exemptions from state law. One 
commenter argued that the FAA already has the legal authority to exempt 
SMS-data from disclosure under Federal, state, and local freedom of 
information and sunshine laws. The commenter stated that Congress 
imposed on the FAA the responsibility of overseeing and regulating 
aviation safety in the U.S., and that pursuant to that authority, the 
FAA adopted a comprehensive regulatory scheme for certain activities. 
As such, the commenter maintained that Federal protection could be 
afforded since, whenever the FAA preempts the field, U.S. courts tend 
to invalidate state laws and regulations that conflict with the FAA 
safety regulations.
    Commenters that commented during both the 2016 and 2021 comment 
periods agreed that a single Federal standard or statutory exemption 
should apply to all airports regarding data and information protection. 
Some commenters wanted the FAA to seek legislative protection to 
address data protection. Numerous commenters believed that the FAA 
should explicitly address data protection in this final rule's 
regulatory text and pressed for Federal legislation to protect such 
information.
    Pursuant to 49 U.S.C. 44735, as amended, the FAA must protect 
certain voluntarily submitted reports, data, or other information 
produced or collected for purposes of developing and implementing a 
safety management system acceptable to the Administrator; however, this 
protection is not afforded to any SMS information required to be 
submitted to the FAA. Consequently, the FAA is limiting the SMS 
information that certificate holders are required provide the Agency 
(i.e., certificate holder's implementation plan and SMS Manual, and/or 
ACM update).
    Specifically, the FAA is not incorporating regulatory language 
requiring certificate holders to report to the FAA any safety-related 
data developed under a SMS. This approach should have no repercussions 
under FOIA and is consistent with the authority under 49 U.S.C. 44735. 
It should also not affect the FAA's ability to review a certificate 
holder's documentation to assess compliance with part 139; meaning, the 
FAA might take possession of such documentation when investigating a 
potential issue of non-compliance.
    Certificate holders are not prohibited from voluntarily sharing 
information with other governmental entities. The protection under 
44735 only safeguards against release by the FAA, and does not extend 
to other governmental entities nor to private entities. This means that 
whenever a certificate holder releases or submits information to any 
other governmental entity, the information rendered is not protected 
from release by such governmental entity, absent other applicable law.
    The information might also not be protected from discovery in civil 
litigation, although the certificate holder could request that a court 
extend additional or ancillary protections available under the laws of 
the relevant jurisdiction. Furthermore, the FAA cannot protect data 
that is shared by and among third parties; such protection would have 
to be granted statutorily or under a legally-binding agreement to 
protect the information that is recognized as protected under state or 
local law.
    As previously stated in the SNPRM, data protection under SSI 
provisions is inapplicable and may be impermissible because those 
procedures are for information obtained or developed in the conduct of 
security activities, as described in 49 CFR part 1520.
(3) Creation of a National Data Repository
    Numerous commenters from both the 2016 and 2021 comment periods 
believed data could be protected under existing Federal protections if 
the FAA established a national repository for certificate holders to 
voluntarily submit hazard data. Two commenters during the 2021 comment 
period suggested that such a repository would be advantageous and 
reduce the financial burden to airports. One commenter explained that 
while the FAA may have little to no need for such information, the 
approach would allow certificate holders to take advantage of the 
narrow legislative provision.
    Regarding the request for the creation of a national data 
repository, the FAA acknowledges that such a database would allow it to 
protect all SMS data submitted voluntarily to the FAA. Notwithstanding, 
the FAA has concluded that a national data repository will not provide 
an immediate solution to data protection. As one of the commenters 
accurately stated, certificate holders could inundate the FAA with 
hazard reports and documentation to gain Federal protection. Further, a 
national database would not prevent disclosure under State or local 
laws. Certificate holders would still be in possession of the data 
before submitting it to the national database.
    The FAA remains interested in the long-term idea of a national 
database, as a means to identify systemic safety issues and hazards. 
The FAA will re-explore this option after certificate holders' SMS 
mature, and the FAA has more time to analyze and consider the types of 
information that could be submitted as well as all resource 
requirements regarding collection. When deemed appropriate, the FAA may 
consider implementing a national data repository, pursuant to the 
provisions of 49 U.S.C. 44735, which allows the FAA to protect from 
disclosure all ``reports, data, or other

[[Page 11657]]

information produced or collected for purposes of developing and 
implementing a safety management system'' as long as the data is 
furnished voluntarily and is not required to be submitted to the FAA 
pursuant to other provisions of law. In addition, the implementing 
regulations to 49 U.S.C. 40123, codified at 14 CFR part 193, afford the 
FAA the option of designating voluntarily submitted safety information 
as ``protected'' information, thereby preventing its disclosure to 
unauthorized third parties.
(4) De-Identified Data
    During the part 139 SMS pilot studies, certain participants 
explored the use of third parties to de-identify hazard reports before 
these were filed with the certificate holder. One commenter noted that 
such a system would add cost and complexity to SMS implementation and 
operation, although it did not address whether the option would result 
in the protection of SMS data.
    As a clarification, the FAA realizes that some confusion exists 
regarding the information that a certificate holder must submit to the 
FAA. One commenter from the 2021 comment period stated that the 
requirement for airports to share de-identified data with the FAA was 
unreasonable.
    As stated in the SNPRM, the FAA decided not to propose data 
reporting requirements for safety-related data created under a SMS. The 
only documents or information that must be submitted to the FAA under 
the SMS provisions are the certificate holder's Implementation Plan and 
SMS Manual and/or ACM update. While at the entity's facility, the FAA 
may request to review additional SMS-related data or information under 
existing regulatory oversight processes to ensure that systemic or 
national compliance issues are reported when appropriate. The only time 
the FAA will take physical possession of SMS-related data off airport 
will be as part of an investigation. Otherwise, the certificate holder 
will retain all other SMS-related information.

E. Safety Reporting and Interoperability

    The SNPRM proposed to require certificate holders to establish and 
maintain a confidential hazard reporting system and to encourage all 
persons accessing the movement and non-movement areas to report hazards 
to the certificate holders. The SNPRM also acknowledged the numerous 
ongoing SMS efforts (e.g., part 5 and internal efforts to implement SMS 
within the FAA) and the overlapping responsibilities related to hazard 
reporting. Commenters to the SNPRM--including certificate holders, air 
carriers, an association, and a consultant--commented on the proposed 
requirement to establish and maintain a confidential hazard reporting 
system.
    In addition to concerns about data protection (see section D. 
``Data Protection''), commenters sought clarification on how SMS 
reporting systems are meant to work and how they should be implemented. 
These commenters requested the FAA address how it expects information 
and data to flow between the airport tenants (including those required 
to implement reporting systems under their own certificate programs) 
and certificate holders. Multiple commenters, including certificate 
holders and air carriers, believed that requiring employees to report 
to multiple SMS systems is duplicative and could cause confusion. A 
commenter also expressed concerns about how hazard reporting would be 
implemented for crewmembers or air carriers operating into multiple 
part 139 airports, stating that it is not reasonable to expect the 
crewmembers to be trained to comply with each individual airport's SMS 
and reporting systems. Another commenter requested the FAA clarify 
whether it considers a confidential hazard reporting system to be the 
same as an operational safety issues system.
    One commenter from the 2021 comment period asked whether this rule 
would apply to air carriers, and whether airports would be expected to 
investigate airline incidents or only act as a repository of lessons 
learned and corrective actions to be shared with all employees and 
employers.
(1) Change in Terminology
    As stated in the SNPRM, the FAA agrees the term ``hazard reporting 
system'' is confusing and does not adequately address the genesis of 
the requirement. The intent of the reporting system is to ensure a 
transparent means of reporting safety issues within the movement and 
non-movement areas. As such, this final rule changes the terminology in 
Sec.  139.402(c)(2) from ``hazard reporting system'' to ``safety 
reporting system.''
(2) Data Sharing and Reporting Plan
    The FAA agrees that, for air carriers or other tenants that are 
required to maintain a SMS, the reporting system as proposed in the 
SNPRM could be duplicative. The FAA believes that the DSR Plan (See 
section C. ``Non-Movement Area''), could alleviate the duplicative 
reporting burden.
    Under Sec.  139.402(c)(2), the airport operator is required to 
maintain a confidential safety reporting system. The system must be 
accessible by all individuals with access to the movement and non-
movement areas (except those excluded through an optional DSR Plan). 
The certificate holder needs access to this type of data to proactively 
address safety issues in the movement and non-movement areas. While the 
FAA acknowledges that the majority of incidents related to wildlife 
strikes account for about 50 percent of the estimated benefits 
primarily occurring in the movement area, the FAA finds that the 
conditions for events, accidents, and incidents that occur are 
originating in the non-movement area. The majority of conditions, 
events, accidents, and incidents that occur in an airport transpire in 
the non-movement area. These conditions that--if unreported, 
unanalyzed, or unmitigated--could directly result or indirectly 
contribute to a chain of events that lead to accidents in air 
transportation.
    The FAA reiterates that part 5 works in parallel to this final 
rule, as it encourages air carriers and airports to communicate with 
one another when hazards and safety issues are identified through their 
respective SMS procedures and processes. Consistent with the intent of 
this rule and the FAA's SMS policy, the part 5 final rule also 
recommended that air carriers notify airports of hazards identified in 
airport facilities, so all certificate holders are aware of issues, 
analyze the risks, and take appropriate remedial action.
    One commenter from the 2021 comment period recommended that the FAA 
speed up the development of SMS software to enable data sharing with an 
FAA-supported vendor in a manner similar to how the FAA implemented the 
SMS requirements under part 5. The FAA does not intend to develop data 
sharing software at this time, but reiterates that Federal funding may 
be available for SMS software development.
(3) Crewmembers Accessing Non-Movement Areas
    The FAA agrees that it is unreasonable to expect that all air 
carrier crewmembers would have knowledge of the reporting systems of 
all airports they fly into. For air carriers or other tenants not 
addressed through an optional DSR Plan, the FAA recommends, but does 
not require, that all crewmembers based at a particular airport and 
those crewmembers most often accessing an airport's non-

[[Page 11658]]

movement area receive safety awareness orientation and report safety 
issues to the airport's safety reporting system. The FAA anticipates 
that crewmembers who are not based at an airport, or with limited 
access to the non-movement area of other airports, will continue to 
report safety issues through their air carrier's employee reporting 
system.\16\
---------------------------------------------------------------------------

    \16\ FAA anticipates that most air carriers with part 5 SMS 
programs will develop DSRs between tenants and airports; however, 
this rule does not establish a regulatory requirement for an airport 
to develop a DSR. Non-DSR agreement airports will continue to 
operate as they do currently to meet current requirements of other 
established regulations. In situations where a DSR does not exist, a 
pilot, for example, would continue to report hazards through their 
company's reporting mechanism, or through the airport's Safety 
Management System.
---------------------------------------------------------------------------

    The FAA deems it crucial for all individuals with access to the 
movement and non-movement areas to have a means of reporting safety 
issues and hazards, since there are limited numbers of certificate 
holder employees with access to these areas at any given time. The 
availability of alternate reporting venues increases the possibility 
that an air carrier employee or an employee of another tenant located 
at the airport will, upon witnessing safety issues not readily visible 
to certificate holder employees, report those observations. This, in 
turn, allows the certificate holder to analyze the situation and take 
prompt action to fix any problems found or implement ancillary measures 
to enhance safety at the airport.

F. Training and Orientation

    The SNPRM identified a 2-prong approach to training requirements. 
First, a small number of certificate holder employees (those involved 
in the implementation and compliance with the SMS) would be required to 
receive SMS-specific training. Second, all other individuals with 
access to the movement and non-movement areas of the airport would not 
have to undergo SMS-specific training, but would instead receive hazard 
(safety) awareness orientation (e.g., they could be provided with 
brochures or be required to complete training modules that discuss what 
a hazard is and how to report it to the airport's safety reporting 
system).\17\
---------------------------------------------------------------------------

    \17\ Airport SMS safety awareness/orientation can be 
accomplished through such methods as written communication, 
presentation, or brochures.
---------------------------------------------------------------------------

    Most commenters agreed with the FAA, but some from both the 2016 
and 2021 comment periods requested that the FAA provide clarification.
(1) Identification of Roles, Responsibilities, and Minimum Training 
Elements
    Most commenters requested that this final rule include job roles, 
responsibilities, and minimum training elements for compliance. 
Comments received during the 2021 comment period reiterated these 
requests.
    The FAA finds it would be overly prescriptive to (a) identify 
specific roles or job titles, or (b) set the minimum elements of SMS-
specific training in regulatory text. This rule is performance-based 
and grants latitude to certificate holders in establishing and 
tailoring their SMS to their particular operations.
    Although the FAA requires the certificate holder to identify an 
accountable executive, it grants airport operators discretion as to how 
to allocate resources to comply with the remaining requirements of the 
rule. Smaller airports may use their accountable executive to implement 
other provisions of the rule. For example, the certificate holder can 
require the accountable executive to be responsible for both SRM and 
continuous oversight under safety assurance, instead of acting 
exclusively as the overarching decision maker or figurehead. 
Accordingly, the FAA has determined it would be overly restrictive or 
burdensome to identify certain roles or job titles warranting training 
and orientation.
    The FAA does not identify minimum elements of SMS-specific training 
for the same reason it does not identify specific roles or job titles. 
As explained above, the FAA wants certificate holders to have maximum 
flexibility in implementing the SMS, in such a way that it can be 
tailored to their unique operating environment, and to facilitate their 
compliance with the broad requirements and intent of the rule. 
Notwithstanding, in the interest of addressing commenters' concerns, 
the FAA decided to incorporate a non-binding, non-exhaustive list of 
examples of training programs implemented by pilot study participants 
in the AC.
    The FAA received several comments in 2021 concerning the training, 
qualifications, and deployment of qualified FAA SMS inspectors. Some 
commenters from the 2021 comment period were also concerned that FAA's 
oversight would encroach into certificate holders' decision-making and 
the judgments certificate holders make during the safety risk 
assessment process, including the proposed and implemented mitigations. 
The FAA intends to train current part 139 inspectors on overseeing 
compliance with this rule in the current inspection process, and on how 
to provide additional guidance to assist certificate holders with 
complying with the rule.
    Commenters also questioned whether the FAA would accept the 
completion of SMS-related coursework to demonstrate compliance with the 
FAA SMS requirements.
    Training received in support of the FAA Air Traffic Organization 
(ATO) or ARP SMS does not meet the intent of the SMS-specific training 
requirements identified in this final rule. Any existing training 
provided by ATO or ARP would be specific to compliance with the FAA's 
internal SMS efforts and not specific to the individual airport's SMS.
(2) Training Estimates Used in Regulatory Evaluation Calculations
    A few commenters from both the 2016 and 2021 comment periods 
requested that the FAA provide clarification on how it developed the 
training estimates. Many of these commenters offered an approximation 
of the number of employees that would require training at their 
airport.
    The FAA agrees that the number of employees requiring SMS-specific 
training will vary per certificate holder. The FAA requested training 
information from the airports that participated in the pilot study 
programs.\18\ That data was used to develop an average for large-sized 
(large, medium, and small hub airports) and small-sized (all other 
airports) operations. The FAA analyzed those responses and included the 
number of employees needing training based on the specific requirements 
of this final rule. The FAA notes that many of the pilot study airports 
appeared to provide training on topics outside the scope of this 
rulemaking and those courses were not included as part of the analysis.
---------------------------------------------------------------------------

    \18\ External SMS Efforts--Part 139 Rulemaking, Airport SMS 
Pilot Studies (Sept. 22, 2020), available at https://www.faa.gov/airports/airport_safety/safety_management_systems/external/pilot_studies/./
---------------------------------------------------------------------------

    In the 2016 comment period, four airport operators (one of which 
holds two AOCs) provided estimated numbers of employees needing 
training. One airport operator, who operates a large hub airport, 
agreed with the FAA's average estimates of 3 and 10 employees. The 
other three airport operators provided their own estimates. One 
operator, who holds AOCs for a large hub and a reliever airport, 
estimated a total of 40 employees in these airports will require 
training. Another large hub airport estimated 30 to 40 employees will 
require training. A

[[Page 11659]]

third large hub airport estimated approximately 2 to 3 people per 
division will require training. In the 2021 comment period, one 
commenter stated that it believed the FAA estimate of 10 employees 
requiring comprehensive SMS training at large airports was low. Another 
commenter noted that some airports are expanding SRM training to 
include Planning, Engineering, and Capital Development teams, which 
increases the total anticipated trainees to more than 50 at some 
airports (as many as 80 total).
    The FAA affirms its preliminary estimates as averages for the 
regulated community's unique operations. The FAA recognizes that some 
airport operators may have to train more employees than others to 
ensure compliance with the rule. The FAA also understands that some 
certificate holders may train employees in topics that are well beyond 
the scope of this regulation--such as occupational health and safety 
issues--but those programs are separate from this final rule (as 
violations of other regulations would not necessarily result in part 
139 violations). If a certificate holder elects to include training on 
topics beyond the scope of this regulation, the FAA would only conduct 
oversight of the SMS activities related to the applicable provisions of 
part 139. For example, an airport could be cited for a violation of an 
OSHA requirement if compliance with OSHA requirements was incorporated 
into its ACM, or if the OSHA violation also resulted in a failure to 
comply with its SMS process. However, the basis for the noncompliance 
would be failure to comply with the SMS process, not non-compliance 
with the OSHA requirement.
(3) Safety Awareness Orientation
    Commenters expressed concerns about the potential duplicate 
requirements already imposed on air carriers through part 5. As 
addressed in section C of the preamble, ``Non-Movement Area,'' 
certificate holders executing a DSR Plan with a tenant are not required 
to duplicate safety awareness orientation materials provided in the 
tenant's SMS to that tenant's employees. Those employees would be 
reporting to the tenant's part 5 confidential employee reporting system 
and would not need to be advised of how to report to the airport's 
safety reporting system.
    One commenter requested that the FAA revise the proposed 
requirement to ``update'' awareness materials every twenty-four months 
(Sec.  139.402(d)(1)). The FAA agrees and this final rule requires the 
airport operator to review and update the safety awareness orientation 
materials every twenty-four months or sooner when necessary. An earlier 
review and update of the orientation material is necessary when there 
has been a change in the material.
(4) Development of Training Materials
    Numerous commenters requested the FAA develop and make available 
SMS-related training materials that would be compliant with SMS 
training requirements.
    The FAA notes that the certificate holder is in the best position 
to determine the competencies necessary for the individuals with roles 
and responsibilities under its SMS. The FAA plans to provide briefings 
and guidance materials, including conducting webinars, to help 
communicate this information.
    While the FAA believes that most certificate holders will rely upon 
industry-developed training materials, certificate holders may develop 
their own training materials based on industry publications and 
guidance. For example, the Airports Cooperative Research Program of the 
Transportation Research Board has published numerous reports on SMS-
related topics. Some of these reports provide detailed information, 
processes, and examples associated with each of the four components of 
SMS. Airport operators could use these publications, as well as other 
publicly available SMS material, to develop their own training 
materials.
(5) Clarification of ``Comprehensive SMS Training''
    The FAA received comments requesting clarification of 
``comprehensive SMS training'' as it relates to the training and 
orientation requirements. While not in the regulatory text, the term 
was used in the SNPRM preamble to identify all training that is 
necessary to ensure personnel overseeing the SMS are competent to 
perform their roles and responsibilities. Individuals responsible for 
analyzing hazard (safety) reports to determine appropriate mitigation 
actions must be properly trained in SRM and hazard assessment 
procedures. Similarly, individuals with responsibility for daily 
oversight of the SMS must be trained in all requirements of the SMS. 
The certificate holder may use train-the-trainer formats where 
necessary.
(6) Clarification of ``Access''
    Commenters requested the FAA clarify or define the term ``access,'' 
as it is used in Sec.  139.402(d)(1). The term ``access'' applies to 
both vehicular and pedestrian access to the movement and non-movement 
areas. The intent of this requirement is to ensure that all individuals 
who may have an opportunity to witness a safety issue understand what 
they should be reporting, when, and how.

G. Accountable Executive

    In the SNPRM, the FAA proposed a new definition for ``accountable 
executive.'' The new definition addressed the diversity of business 
structures and varying degrees of complexity of certificate holders. 
The FAA explained that it anticipated most certificate holders would 
designate an airport manager or airport director as the accountable 
executive, and that accountability could not be delegated. Numerous 
entities, including associations, certificate holders, and air 
carriers, commented on the revised definition of ``accountable 
executive.''
(1) Amendment or Elimination of the Accountable Executive Requirement
    While most commenters agreed with the concept of an accountable 
executive, the FAA received requests for revisions or explanations. One 
2021 commenter incorrectly interpreted the FAA's proposal to allow 
certificate holders to designate an accountable organization structure 
instead of one executive. This commenter further stated that while 
there is a need for an Accountable Executive, in many cases, airport 
structure could call for one or more ``responsible executive(s)'' to 
oversee the implementation and operation of the SMS.
    The FAA is not persuaded by arguments recommending changes to, or 
elimination of, the ``accountable executive.'' The concept of an 
accountable executive is key to the successful development and 
implementation of a SMS and consistent with international standards. 
Additionally, this rule requires the identification of an individual as 
an accountable executive, rather than the designation of an accountable 
organization structure in place of an accountable executive or one or 
more responsible executives. A certificate holder may choose to 
identify support staff to assist the accountable executive, as 
discussed further in the supplemental guidance AC.
(2) Delegation
    Commenters asserted that certificate holders should have the option 
to delegate the accountable executive's roles and responsibilities to a 
lower-level or operational manager with direct

[[Page 11660]]

oversight of the SMS. As stated in the SNPRM, accountability cannot be 
delegated. The accountable executive's role is meant to instill safety 
as a core organizational value and to ensure that SMS is properly 
implemented and maintained through the allocation of resources and 
tasks. By designating an accountable executive, responsibility for the 
certificate holder's overall safety performance is placed at a high 
level within the organization. Some airports may choose to designate 
additional positions to implement the daily operation of the SMS. 
However, such designations are left to the discretion of the 
certificate holders, based on their unique operating environments and 
management structures. For guidance purpose, the FAA has included in 
the AC examples of accountable executive designations and addressed the 
issue of ``responsible executive or manager'' for the day-to-day 
oversight of SMS activities.
(3) Personal Liability and Oversight
    Commenters from both the 2016 and 2021 comment periods believed the 
FAA should make stronger statements limiting the personal liability of 
accountable executives. They requested the FAA include preamble 
language: (a) stating that the accountable executive is not personally 
liable to the FAA through certificate action or civil penalty, and (b) 
establishing a clear regulatory intent that this final rule is not 
intended to increase or create personal liability for the accountable 
executive. Additionally, one 2021 commenter requested that the rule be 
revised to allow the accountable executive to seek indemnification from 
tenants in respect to SMS compliance issues within their leaseholds, 
and to appoint a tenant accountable executive for that purpose.
    The definition of ``accountable executive'' also limits both 
control and responsibility to ``operations conducted under the 
certificate holder's Airport Operating Certificate.'' As ``an 
individual designated by the certificate holder,'' the FAA does not 
expect the definition to usurp the oversight role of the legislative 
body or authority that is the certificate holder.
    Concerns regarding the accountable executive's personal liability 
for the actions of tenant organizations, air carriers, or leaseholds, 
are misplaced. As stated in the SNPRM, the new definition clarifies 
that accountable executives are not personally liable to the FAA, 
through either certificate action or civil penalty. The FAA limited the 
``control'' and ``responsibility'' of an accountable executive to 
operations conducted under the certificate holder's AOC. Since the 
scope of action and responsibility of an accountable executive is 
limited, the FAA decided not to include nor require indemnification by 
the accountable executive to any third party under this final rule. 
While the FAA does not intend for accountable executives acting within 
the scope of their powers and duties to have personal liability to any 
third party, the FAA must stress that liability issues are typically 
controlled by state law, and the parties remain subject to applicable 
state law with regard to liability issues and remedial action.
    Generally speaking, the airport manager or director's role of 
ensuring compliance with the AOC does not change under this final rule. 
Prior to this final rule, violations of part 139 requirements would be 
found against the certificate holder. The same logic holds true under 
the SMS final rule.
    Along the same lines, while the FAA allows an airport operator to 
establish a DSR Plan (See section C. ``Non-Movement Area'') to address 
reporting and data sharing with applicable tenants required to comply 
with part 5, if the certificate holder discovers that the tenant is not 
complying with the terms of the agreement, or policy and relevant 
safety issues or findings are not being properly or timely conveyed to 
the airport operator, the onus for compliance remains with the airport 
operator. The airport operator is responsible for ensuring the 
airport's safety reporting system is accessible for reports by tenant 
employees and that those employees receive safety awareness orientation 
materials.

H. Definitions

    In the SNPRM, the FAA revised the definitions of numerous terms, 
either in response to comments or to conform to agency policy at the 
time of the proposal. The FAA received many comments regarding the new 
definitions of hazard and non-movement area. The FAA also received 
suggestions during both the 2016 and the 2021 comment periods to revise 
other terms related to this final rule.
(1) ``Hazard'' Definition
    Commenters from the 2016 and 2021 comment periods disagreed with 
the FAA's use of the part 5 definition of the term ``hazard.'' They 
believed that the term is not applicable to the airport environment 
since it is centered on the operation of an aircraft and aircraft 
accidents, as defined by the NTSB. These commenters recommended the FAA 
use the ``hazard'' definitions included in FAA Order 5200.11, FAA 
Airports (ARP) Safety Management System (SMS), FAA Order 8040.4, Safety 
Risk Management Policy, and the ICAO Safety Management Manual (3rd 
edition).
    The FAA understands the confusion arising from the SNPRM definition 
of ``hazard'' and the limited reporting that may occur through a strict 
reading of the regulatory text. To ensure consistent application and 
reporting across the airport-airline industry, as well as to ensure 
applicability to the non-movement area, the FAA amends the definition 
in this final rule. For this rule, we define the term ``hazard'' as ``a 
condition that could foreseeably cause or contribute to: (a) injury, 
illness, death, damage to or loss of system, equipment, or property, or 
(b) an aircraft accident as defined in 49 CFR 830.2.'' The FAA 
determined this revised definition establishes a suitable parameter 
that encompasses the wide range of conditions that airports may 
encounter and deem as hazards, and it enables airports to include 
conditions that are not necessarily related to an aircraft accident. 
For example, part (a) of the definition allows for ramp incidents; 
accidents and fatalities involving aircraft ground service equipment 
and other vehicles; construction-related fatalities; and damage to 
airfield facilities including lighting, signage, pavement, safety 
areas, and navigational aids to qualify as a hazard. These incidents 
would not constitute ``hazards'' if the definition was limited to part 
(b) (conditions that could foreseeably cause or contribute to an 
aircraft accident). As a result, the FAA revised the definition to more 
broadly encompass the myriad of conditions in the airport environment, 
including in movement and non-movement areas and conditions involving 
and not involving aircraft. The FAA notes that this definition will 
also provide flexibility to airport organizations for defining what a 
reportable hazard is for their organization, and as a part of 
developing their SMS they may define thresholds for what might entail a 
reportable incident. This will allow, for example, a small airport to 
treat an incident that results in $1,000 in damage as a potentially 
reportable incident, whereas a large airport may consider property 
damage at that level to be de minimis.
(2) ``Non-Movement Area'' Definition
    Commenters requested the FAA retain a more generic definition of 
the term ``non-movement area'' as opposed to a definition that 
specifies the types of areas included. The FAA was asked: (a) to 
exclude ``fuel farms'' from the

[[Page 11661]]

definition of ``non-movement area'' or to at a minimum allow their 
inclusion at the option of the certificate holder, and (b) to re-
evaluate its decision not to include baggage-makeup areas in the 
definition of ``non-movement area.''
    As discussed in section C. ``Non-Movement Area,'' the FAA is 
adopting the definition for ``non-movement area'' as proposed.
(3) Harmonization of ``Safety Policy,'' ``Safety Risk Management,'' 
``Safety Assurance,'' and ``Safety Promotion'' Definitions
    The FAA agrees with commenters' request from the 2016 comment 
period to update the definitions of ``safety policy'' and ``safety 
assurance.'' One commenter from the 2021 comment period emphasized the 
need for consistent terminology related to the SRM process. Any 
revision must be carefully assessed since both definitions sync with 
part 5 instead of internal FAA Orders. Where commenters requested the 
FAA use ICAO definitions, the FAA's intent is to first synchronize 
these definitions with part 5 or other Agency definitions--if 
possible--to ensure the industry uses similar taxonomy. Therefore, this 
final rule revises the definitions of the terms ``safety policy,'' 
``safety assurance,'' and ``safety promotion,'' to sync with the 
current definitions in part 5. This final rule also updates the 
definition of the term ``safety risk management'' to more closely align 
it to the definition in part 5. The notable difference is that airports 
typically use the term ``risk mitigation,'' whereas air carriers use 
the term ``risk control.'' To address this difference, this final rule 
uses both terms for the definition of ``safety risk management.''

I. Miscellaneous Topics

(1) FAA's Rulemaking Authority
    A commenter stated that the FAA Aviation Act of 1958 does not give 
the Administrator the power to require regulated parties to self-
analyze, self-disclose, self-report, and self-implement procedures 
beyond those stipulated through legislative and administrative 
processes.
    The FAA's authority to issue rules regarding aviation safety is 
found in Title 49 of the U.S.C. The FAA proposed this rulemaking under 
the authority described in 49 U.S.C. 106(f), 44701, 44702, and 44706 
(See section II. A. of this preamble). In the Federal Aviation Act of 
1958, as amended and recodified, 49 U.S.C. 40101, et seq., Congress 
provided the FAA with (a) exclusive authority to regulate safety, (b) 
the efficient use of the airspace, (c) protection of people and 
property on the ground, (d) air traffic control, (e) navigational 
facilities, and (f) the regulation of aircraft noise at its source.
    Title 49 of the U.S.C., section 44706, provides for the FAA to 
regulate airport safety through the issuance of airport operating 
certificates. Under this statute, Congress requires the certificate to 
contain the terms necessary to ensure safety in air transportation.
    Under the implementing regulations for section 44706, codified at 
14 CFR part 139, the FAA regulates airport certificate holders in many 
areas, including: (a) records, (b) personnel, (c) paved areas, (d) 
unpaved areas, (e) safety areas, (f) airport marking/signs/lighting, 
(g) aircraft rescue and firefighting, (h) snow and ice control, (i) 
handling and storing hazardous substances and materials, (j) traffic 
and wind indicators, (k) airport emergency plans, (l) self-inspection 
programs, (m) pedestrian and ground vehicles, (n) obstructions, (o) 
protection of navigation aids, (p) public protection, (q) wildlife 
hazard management, (r) airport condition reporting, (s) identifying, 
marking, and lighting construction and other unserviceable areas, and 
(t) noncomplying conditions.
    Requiring certain certificated airports to implement a SMS for the 
entire airfield environment is consistent with the FAA's statutory and 
regulatory framework described above. The primary purpose of section 
44706 and its implementing regulations is to ensure safety in air 
transportation and such safety is advanced by the additional safety 
measures applicable to airports subject to this final rule. The FAA has 
the authority to implement regulations to improve safety at airports 
hosting air carrier operations including requiring certificate holders 
to develop and implement measures to ensure safety in air 
transportation by proactively identifying and mitigating safety 
hazards, thereby reducing the possibility or recurrence of accidents in 
air transportation. This final rule is a performance-based regulation 
that requires certificated airports that meet pre-established 
qualification criteria (triggers) to develop and maintain a SMS to 
improve the safety of operations conducted at such airports; therefore, 
it is within the scope of authority of the Agency.
(2) Applicability to Non-Certificated Airports
    The FAA stated in the SNPRM that the proposed rule would only apply 
to holders of a part 139 AOC. Commenters asked The FAA to (a) confirm 
that it did, and (b) clarify whether the SMS requirement was voluntary 
for general aviation airports that are not certificated under part 139.
    The FAA confirms that this final rule does not apply to non-
certificated airports, but continues to encourage such airports to 
voluntarily adopt SMS. The rule is not affected by, nor does it depend 
on, whether an airport has accepted Federal financial assistance or 
property conveyances. Further, this final rule does not require airport 
tenants to have a separate SMS because it only applies to holders of 
part 139 AOCs. As previously discussed, this fact does not prevent 
certificate holders from engaging with tenants to implement 
alternatives that facilitate compliance with the requirements of the 
SMS.
(3) FAA Oversight
    The SNPRM included a discussion of the FAA's role and oversight of 
certificate holders under the proposed SMS rule. This discussion noted 
SMS is not a substitute for compliance with existing regulations and 
provided general expectations about inspections in a SMS environment, 
emphasizing the importance of implementing a systems-based approach to 
oversight.
    Commenters from both the 2016 and 2021 comment periods asked the 
FAA to clarify certain aspects of its oversight activities, 
particularly: (a) how SMS fits in relation to other federal regulations 
such as the Occupational Safety and Health Administration (OSHA) rules, 
National Environmental Policy Act (NEPA) rules, State regulations, and 
other local ordinances; (b) how SMS brings value beyond standards 
imposed elsewhere, and (c) whether hazards identified through their SMS 
will qualify as items of concern. Commenters also requested the FAA 
state that the SMS rule will not alter existing State laws regarding 
standards of care or duty of care.
    Commenters from both the 2016 and 2021 comment periods requested 
that the FAA clarify its oversight approach in either the final rule 
preamble or the regulatory text.
    The FAA does not intend for the implementation of SMS at an airport 
to implicate regulations issued by other agencies. In some instances, 
airport SMS may complement compliance with other regulations (such as 
OSHA, NEPA). An airport SMS is the next critical step in the FAA's 
ongoing transition to a more streamlined and performance-based 
regulatory framework for airports. Airport SMS will evolve the FAA's 
oversight processes so FAA involvement targets the areas of highest 
safety risk. For airports with a fully implemented SMS

[[Page 11662]]

and that have a consistent history of compliance with the requirements 
of part 139, the FAA will transition to a system-based inspection 
allowing an inspector to focus on areas of greater risk. As a 
consistent history of compliance under SMS develops, the FAA will have 
data to support modifying the duration of time between an airport's 
periodic inspections. The FAA will continue to use a traditional 
approach and cycle for inspections at airports without a SMS, with 
higher risks, or a history of non-compliance. The FAA retains the 
ability to use a traditional inspection cycle for airports with a fully 
implemented SMS when deemed necessary (e.g., increase in number of 
discrepancies with part 139 requirements).
    A comment received in 2021 emphasized that the FAA should be 
flexible and less prescriptive in its approach. Another comment 
received in 2021 emphasized that the FAA should provide training and 
resources for SMS education. The FAA acknowledges that shifting from a 
prescriptive to performance-based regulation and systems-based 
oversight will take time and require educating and guiding both FAA 
inspectors and airport operators. The FAA will update FAA inspector 
guidance, provide training to the FAA inspectors on the requirements of 
this final rule, and provide outreach to the industry regarding the 
final rule requirements.
    The FAA received comments during both the 2016 and 2021 comment 
periods asking the FAA to: (a) collaborate with airports with existing 
voluntary SMS and other stakeholders to develop SMS oversight 
guidelines based on lessons learned that explicitly define the systems-
based approach and how it changes inspector responsibilities and 
activities; (b) commit to a timetable and process for training its 
inspectors on the new approach and clarify that no SMS inspections will 
take place until inspectors have been trained; (c) cross train all part 
121 and part 139 inspectors in the respective SMS requirements; and (d) 
invite airport industry representatives to participate in the training 
of FAA inspectors.
    The FAA does not normally invite industry representatives to 
participate in the training of FAA inspectors and does not believe SMS 
requirements would cause it to change this position. While the FAA does 
not agree that part 139 and part 121 inspectors require cross-training 
in the respective SMS requirements, ARP and AVS will identify the 
various SMS requirements and areas of connectivity in Agency materials.
    The SMS final rule will not alter the responsibilities of the FAA's 
regional inspector staff. Like other part 139 related activities, the 
regional inspector staff is responsible for reviewing, approving, 
accepting, and inspecting the airport's SMS documents and program. As 
discussed in the SNPRM, FAA Headquarters staff will supplement these 
activities--by providing support and guidance to our regional 
inspection staff--to ensure national consistency and timely program 
implementation. Questions regarding federal financial assistance for 
SMS related activities should be directed to the appropriate FAA 
Regional Office or Airport District Office personnel.
(4) Safety Risk Management
    The SNPRM proposed minimum requirements for SRM, including 
establishing a systematic process for analyzing hazards and related 
risks, using a standard five-step process. As part of the SRM 
component, the SNPRM also included standard documentation and record 
retention requirements.
    The FAA was asked to re-evaluate the requirement to handle all 
hazards through the five-step process, in light of a comment that 
certificate holders should have the flexibility to determine which 
hazards require analysis using the five-step process and which hazards 
only need review and mitigation.
    Commenters questioned (a) the FAA inspector's role in the risk 
determination process, and (b) whether the FAA will be able to overrule 
a certificate holder's determination, even when safety standards are 
met.
    The SNPRM did not propose to require the use of a predictive risk 
matrix for hazard assessment, but suggested its use as an effective 
method to analyze and prioritize risk. The FAA was asked whether a 
specific matrix must be used, or if airport operators will be allowed 
to modify the risk matrix included in the NPRM to better fit the 
airport's needs and goals. While encouraged, this final rule does not 
require the use of a predictive risk matrix.
    Commenters from both the 2016 and 2021 comment periods: (a) noted 
that many large hub and international airports have existing, 
comprehensive safety and risk management programs; (b) requested the 
FAA explain how these existing programs will be integrated into SMS 
processes; and (c) recommended that the FAA accept or provide credit to 
airports with existing processes similar to those outlined in the 
proposal.
    This final rule provides airport operators flexibility in how they 
resolve safety issues and hazards. It does not require certificate 
holders to use the five-step process to address all safety concerns. 
Instead, the regulatory text requires certificate holders to use the 
five-step process to analyze ``hazards.'' The FAA acknowledges that not 
all reports through the airports' safety reporting system or other 
sources constitute hazards. Therefore, certificate holders would only 
need to use the systematic analysis for identified hazards.
    Nothing in this final rule requires consensus decision making. 
While the FAA encourages certificate holders to work with affected 
stakeholders, it is not a requirement of this final rule. If the 
airport operator develops a DSR Plan, the FAA expects it to identify 
when and how the airport and tenant will work together to analyze and 
resolve joint safety issues. In most cases, the certificate holder is 
also the airport owner and, as owner, has ultimate control over their 
airport's decisions. Similarly, the FAA expects that whenever the 
certificate holder is an entity other than the airport owner, the 
agreement allowing the certificate holder to operate the airport should 
have adequate controls and provisions (i.e. sufficient authority and 
resources) to allow them to make all pertinent decisions to enable 
compliance with part 139 and the FAA-approved ACM (the FAA notes that 
this scope of oversight is similar to existing expectations under part 
139 and the FAA-approved ACM). In extreme cases, if the airport 
identifies hazard mitigations under the SRM process that a tenant is 
unwilling to implement, an airport might be expected to restrict or 
break its contract and cease operations with the tenant to ensure that 
the hazardous condition does not continue. Regardless of the existence 
of any agreement, policy, or arrangement, and regardless of the 
decision-making process or determinations made under them, the 
certificate holder remains solely responsible before the FAA for full 
compliance with the SMS requirements of this final rule. 
Notwithstanding, the FAA committed in the NPRM and SNPRM to not second 
guess certificate holder decisions under SRM processes, and the FAA's 
position has not changed in this final rule. The only time the FAA will 
weigh in is if the certificate holder uses SRM processes to circumvent 
regulation or standards.
    The certificate holder may identify in its FAA-approved 
Implementation Plan any existing programs, policies, or activities it 
plans to use as a means of

[[Page 11663]]

compliance with the rule. Where an existing program is used as a 
foundation, the certificate holder will explain what additional actions 
will be put in place to ensure the programs fully meet the intent of 
the requirement. As long as existing safety and risk management 
programs meet the requirements of this final rule, they can be used 
``as is'' to comply. However, if there are gaps between the existing 
program and this final rule requirements, the certificate holder would 
still be required to comply with this final rule and must identify in 
its Implementation Plan how it will address those gaps prior to the 
full implementation deadline.
    In the SNPRM, the FAA acknowledged that the definition of ``risk 
mitigation'' did not harmonize with part 5's ``risk control'' 
terminology. The FAA's conclusion was that the term ``mitigate'' was 
straightforward and aligned with other guidance certificate holders 
have received related to FAA SMS initiatives. While this final rule 
retains the definition of ``risk mitigation,'' it expands the 
definition of ``safety risk management'' and ``safety assurance'' to 
incorporate the term ``control'' or ``controlling'' to provide better 
harmonization with part 5.
    A commenter from the 2021 comment period recommended that the FAA 
create an FAA ``Airport Safety'' web page, similar in format to the FAA 
web page ``Airline Safety.'' Once the rule is published, the Office of 
Airports intends to update the public facing web page to contain 
current and relevant part 139 SMS material.
(5) Record Retention
    Under the SRM component, the FAA proposed to require a certificate 
holder to develop processes to identify hazards that may impact the 
airport's operations. The certificate holder will use these processes 
to analyze those hazards and risks and retain any documentation 
developed through these processes to assist in trend and root cause 
analysis. The FAA proposed to require a certificate holder to retain 
records associated with SRM processes for the longer of (a) 36 months 
after the risk analysis of identified hazards has been completed or (b) 
12 months after required mitigations have been implemented. Under the 
Safety Promotion component (see Sec.  139.402(d)), the FAA proposed to 
require certificate holders to also retain training records and hazard 
awareness orientation briefing materials. Commenters asked the FAA to 
clarify how long a certificate holder should retain data.
    The record retention requirements proposed in the NPRM and SNPRM 
sync with existing record retention requirements under part 139. In 
this case, the FAA found it more useful to apply existing part 139 
retention standards for ease of document retention instead of syncing 
requirements with part 5. A certificate holder may always choose to 
retain records for longer, especially where State laws require longer 
retention. This final rule provides the minimum requirement for 
compliance.
(6) SMS Manual Updates
    While drafting this final rule, the FAA recognized some confusion 
regarding the requirement in Sec.  139.401(g) to provide the FAA with 
copies of any changes to the Airport SMS Manual, on an annual basis. 
This final rule retains this provision but adds the caveat ``or upon 
FAA request.'' One commenter from the 2021 comment period incorrectly 
interpreted the SNPRM as requiring FAA approval of SMS manuals, and 
noted that such approval will impede SMS development.
    Unlike the ACM, the SMS Manual is not approved; rather, it is 
accepted by the FAA. The certificate holder could implement new 
provisions in the SMS Manual without previously sharing those changes 
with the FAA, unlike the requirement for changes to the FAA-approved 
ACM. Therefore, regulatory text was necessary to ensure that the FAA 
has the most up-to-date version of the SMS Manual prior to conducting 
the annual certification inspection, or during any other surveillance 
activities.
    If no changes have been made to the SMS Manual over the past year 
(or upon FAA request), the certificate holder can simply send an 
electronic or written message to the FAA stating no changes have been 
made.
(7) Guidance and Work Groups
    The FAA received numerous comments during both the 2016 and 2021 
comment periods from certificate holders and associations, requesting 
clarification on how the FAA would (a) update existing draft guidance 
with publication of this final rule, and (b) provide timely updates to 
guidance, during implementation.
    The FAA received comments during the 2021 comment period inquiring 
about industry participation in development of the final rule. The FAA 
provided industry an opportunity to participate in the development of 
the final rule through the 2016 and 2021 comment periods, in accordance 
with the Administrative Procedure Act.
    AC 150/5200-37A has been updated to address requirements contained 
in this final rule and is being published simultaneously with this 
final rule. All comments related to AC material were catalogued and 
adjudicated during the update to AC 150/5200-37A. Industry was given 
additional time to submit comments on the AC and the FAA received 
detailed comments within the comment period. Regarding comments 
received during the 2016 and 2021 comment periods on guidance updates, 
the FAA has several existing methods for disseminating timely updates 
including Policy Guidance Letters and Cert Alerts that could be used to 
disseminate implementation and oversight guidance as the programs 
evolve.
    One commenter from the 2021 comment period recommended the addition 
of an awards and recognition section in the FAA's guidance to provide 
existing examples of SMS, in an effort to encourage the growth of SMS. 
The FAA encourages certificate holders to explore means of developing 
their SMS safety culture at their airport and currently considers the 
available guidance publications sufficient.

IV. Regulatory Notices and Analyses

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 and Executive Order 13563 direct 
that each Federal agency shall propose or adopt a regulation only upon 
a reasoned determination that the benefits of the intended regulation 
justify its costs. Second, the Regulatory Flexibility Act of 1980 (Pub. 
L. 96-354) requires agencies to analyze the economic impact of 
regulatory changes on small entities. Third, the Trade Agreements Act 
(Pub. L. 96-39 as amended) prohibits agencies from setting standards 
that create unnecessary obstacles to the foreign commerce of the United 
States. In developing U.S. standards, the Trade Agreements Act requires 
agencies to consider international standards and, where appropriate, 
that they be the basis of U.S. standards. Fourth, the Unfunded Mandates 
Reform Act of 1995 (Pub. L. 104-4) requires agencies to prepare a 
written assessment of the costs, benefits, and other effects of 
proposed or final rules that include a Federal mandate likely to result 
in the expenditure by State, local, or tribal governments, in the 
aggregate, or by the private sector, of $100 million or more (adjusted 
annually for inflation) in any one year. The FAA has provided a more 
detailed Regulatory Impact Analysis of this final rule in the docket of 
this rulemaking. This portion

[[Page 11664]]

of the preamble summarizes the FAA's analysis of the economic impacts 
of this rule.
    In conducting these analyses, the FAA has determined that this 
final rule: (1) has benefits that justify its costs; (2) is not an 
economically ``significant regulatory action'' as defined in section 
3(f) of Executive Order 12866; (3) is ``significant'' as defined in 
DOT's Regulatory Policies and Procedures; (4) will have a significant 
economic impact on a substantial number of small entities; (5) will not 
create unnecessary obstacles to the foreign commerce of the United 
States; and (6) will not impose an unfunded mandate on state, local, or 
tribal governments, or on the private sector by exceeding the threshold 
identified above. These analyses are summarized below.

A. Regulatory Evaluation

Total Benefits and Costs of This Rule
    The rule requires a SMS at certain U.S. airports in an effort to 
improve airport safety, complement existing airport safety regulations 
in part 139, and meet the intent of the ICAO standard.
    The goal of this rule is to improve the safety of the airfield 
environment (including movement and non-movement areas) by providing an 
airport with decision-making tools to plan, organize, direct, and 
control its everyday activities in a manner that enhances safety. Table 
4 shows benefits and costs over ten years. Table 4 also includes the 
FAA's estimated cost savings of changing the traditional inspection 
cycle at airports with a fully implemented SMS. The benefits discussed 
below are only achievable through airports implementing mitigation 
measures identified through their SMS processes; however, the 
regulatory evaluation does not quantify the potential costs to 
implement these mitigations. There are no available empirical 
retrospective analyses of existing SMS programs that the FAA could 
leverage to quantitatively estimate the benefits related to the 
potential effectiveness of airport SMSs at mitigating accidents and 
incidents. Transport Canada's initial 2019 report on airport SMS 
implementation notes, in part, ``we were not able to quantify the 
extent of SMS's contribution to aviation safety,'' although it does 
discuss perceived qualitative benefits, particularly at larger 
airports.\19\ Similarly, not enough time has elapsed since the 
implementation of Part 121 SMS to measure the potential effectiveness 
of SMS for air carriers, particularly in light of disruptions to air 
travel due to the COVID-19 pandemic. As a result, to estimate some 
potential benefits related to accident and incident mitigation, FAA 
used a panel of subject matter experts to assign quantitative 
probabilities to the mitigation effectiveness in each selected event. 
As described in further detail in the Regulatory Impact Analysis, of 
the 1,840 accidents and incidents used for this analysis, the FAA 
assumed a 20-39 percent chance of preventing similar accidents or 
incidents for 81 percent of these events through a SMS, and for the 
other 19 percent of events the FAA assumed between a 40-59 percent 
chance of effective mitigation.
---------------------------------------------------------------------------

    \19\ (Evaluation summary--Evaluation of Safety Management 
Systems in Civil Aviation--July 2019 (canada.ca)).

                             Table 4--Comparison of Costs and Benefits Over 10 Years
                                           [Millions of 2020 dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Present value    Annualized     Present value    Annualized
                                                       (3%)            (3%)            (7%)            (7%)
----------------------------------------------------------------------------------------------------------------
Benefits........................................          $199.2           $23.4          $144.1           $20.5
Costs...........................................           179.8            21.1           139.0            19.8
Cost Savings....................................             3.1             0.4             2.2             0.3
Net Benefits (includes mitigation benefits, but             22.5             2.6             7.3             1.0
 excludes mitigation costs).....................
----------------------------------------------------------------------------------------------------------------
Note: The sum of the individual items may not equal totals due to rounding.

    Over the ten-year period of analysis, the estimated present value 
benefit of the final rule is $144.1 million at a seven percent discount 
rate with an annualized benefit of $20.5 million. At a three percent 
discount rate, the present value benefit is $199.2 million with an 
annualized benefit of $23.4 million. Excluding mitigation costs, the 
estimated present value cost of the final rule is $139 million at a 
seven percent discount rate with an annualized cost of $19.8 million. 
At a three percent discount rate, the cost in present value is $179.8 
million with an annualized cost of $21.1 million. The cost savings, at 
a seven percent discount rate, is $2.2 million with an annualized cost 
savings of $0.3 million and $3.1 million, at a three percent discount 
rate, with annualized cost savings of $0.4 million.
Who is potentially affected by this rule?
    After updating the list to account for the new data sources, there 
are 191 applicable airports (as of February 2017). Part 139 
certificated airports that meet one or more of the following triggering 
criteria: (a) classified as a small, medium, or large hub airport based 
on passenger data extracted from the Air Carrier Activity Information 
System, (b) has a three-year rolling average of 100,000 or more total 
annual operations \20\ or (c) serves any international operation other 
than general aviation. Table 5 below provides an estimated number of 
impacted airports by the three different triggering criteria.
---------------------------------------------------------------------------

    \20\ In the context of the operations trigger, the term 
operations means the sum of all arrivals and departures.

       Table 5--Estimated Number of Affected Airports by Category
------------------------------------------------------------------------
                                                               Number of
                     Airport categories                        airports
------------------------------------------------------------------------
Large, Medium, and Small Hub................................         132
>100,000 Operations.........................................          27
International Traffic.......................................          32
------------------------------------------------------------------------

    General Assumptions:
     Cost and benefit estimates are in 2020 dollars.
     Costs and benefits are estimated over a ten-year period.
     Costs to airports begin to accrue in year 1.
     Benefits of SMS begin to accrue in year 5 or year 6 after 
full implementation.
     The present value discount rates of seven percent and 
three percent are

[[Page 11665]]

applied per Office of Management and Budget guidance.\21\
---------------------------------------------------------------------------

    \21\ https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf.
---------------------------------------------------------------------------

Benefits of This Rule
    The objective of SMS is to proactively manage safety, identify 
potential hazards or risks, and implement measures that mitigate those 
risks. The FAA envisions airports being able to use all of the 
components of SMS to enhance the airport's ability to identify safety 
issues and spot trends before they result in a near-miss, incident, or 
accident. Anecdotally, based on the FAA Airport SMS Pilot Study, 
airports indicate benefits from increased communication and reporting 
that are all fundamental components of SMS. These efforts are expected 
to prevent accidents and incidents. Over the ten-year period of 
analysis, the benefits of the rule are estimated to be $144.1 million 
at seven percent present value or $20.5 million annualized. At a 3 
percent discount rate, the benefit in present value is $199.2 million 
or $23.4 million annualized.
Costs of This Rule
    The rule requires certain part 139 certificated airports to 
establish a SMS based on the four components: (i) safety policy; (ii) 
safety risk management (SRM); (iii) safety assurance; and (iv) safety 
promotion. These components include costs to document an airport's 
Implementation Plan and SMS manual, staffing, equipment/material, 
training, update training records, and recording potential hazards over 
ten years. The costs vary based on the size of the airport. The total 
cost, over 10 years, in present value at a seven percent discount rate 
is $139 million or $19.8 million annualized. At a three percent 
discount rate, the cost in present value is $179.8 million or $21.1 
million annualized.
Alternatives Considered
    The FAA analyzed the following applicability alternatives in the 
SNPRM:
    1. All part 139 airports;
    2. Airport operators holding a Class I AOC;
    3. Certificated international airports;
    4. Large, medium, and small hub airports and certificated airports 
with more than 100,000 total annual operations; and
    5. Large, Medium, and Small hub airports, certificated airports 
with more than 100,000 total annual operations, and certificated 
international airports.
    The SNPRM identified the last alternative as the preferred 
alternative. Upon receiving comments on how affected airports were 
selected, the FAA reviewed the selection process and refined some of 
the triggering criteria. This final rule will continue to apply to 
large, medium, and small hub airports, certificated airports with more 
than 100,000 total annual operations, and certificated airports that 
serve any international operation other than general aviation. The 
change in this final rule further reduces the number of applicable 
airports from approximately 265 impacted airports to 191.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation. To achieve this principle, agencies are required 
to solicit and consider flexible regulatory proposals and to explain 
the rationale for their actions to assure that such proposals are given 
serious consideration.'' The RFA covers a wide range of small entities, 
including small businesses, not-for-profit organizations, and small 
governmental jurisdictions.
    Section 604 of the Act requires agencies to prepare a final 
regulatory flexibility analysis (FRFA) describing the impact of final 
rules on small entities. After preparing the FRFA, the FAA estimates 
that a substantial number of small-entity airports will be affected by 
the final rule and does not certify that there will not be a 
significant effect on a substantial number of small entities.
(i) A Statement of the Need for, and Objectives of, the Rule
    The FAA remains committed to continuously improving safety in air 
transportation. The FAA believes that a SMS can address potential 
safety gaps that are not completely eliminated through effective FAA 
regulations and technical operating standards. The certificate holder 
best understands its own operating environment and, therefore, is in 
the best position to address safety issues through improved management 
practices.
    Both the NTSB and ICAO support SMS as a means to prevent future 
accidents and improve safety. The NTSB has cited organizational factors 
contributing to aviation accidents and has recommended SMS for several 
sectors of the aviation industry, including aircraft operators. The FAA 
has concluded those same organizational factors and benefits of SMS 
apply across the aviation industry, including airports. In 2001, ICAO 
adopted a standard in Annex 14 that all member states establish SMS 
requirements for airport operators hosting international operations. 
The FAA supports conformity of U.S. aviation safety regulations with 
ICAO standards and recommended practices.
(ii) A Statement of the Significant Issues Raised by the Public 
Comments in Response to the Initial Regulatory Flexibility Analysis, a 
Statement of the Assessment of the Agency of Such Issues, and a 
Statement of Any Changes Made in the Proposed Rule as a Result of Such 
Comments
    Many commenters reported an additional burden on small airports 
that they believe was not included on the Initial Regulatory 
Evaluation.
    FAA Response: The FAA reevaluated the impact by class to assess the 
burden on smaller airports. While the FAA originally believed that 
Class II, III, IV certificate holders would gain benefits similar to 
Class I certificate holders from formalized hazard identification, risk 
analysis, training and communications processes; the cost impact is 
substantial on these certificate holders. Based on this analysis the 
FAA changed the scope of this final rule to affect a smaller population 
of small airports. The change in this requirement still advances the 
FAA's safety goals by targeting airports with over 90 percent of all 
passenger enplanements.
    Additionally, SMS is scalable. Airport characteristics, such as 
size, organization and governance structures, type of air carrier 
operations, and number of operations, are all factors that affect a 
certificate holder's version of SMS. This final rule further clarifies 
the scalability of SMS, which the FAA believes mitigates the burden on 
smaller airports and this final rule also increases the time for 
implementation.
    A commenter disputes the definition of a small airport by operation 
and class.
    FAA Response: The FAA maintains that the number of operations and 
class help determine the size of an airport. Effectively all non-Class 
I airports are treated as small. The FAA agrees that a substantial 
number of small-entity airports will be affected. Many of the smaller 
airport employees have broad responsibilities--an airport employee 
could cut the grass, remove foreign-object debris, and drive the fire 
truck. The classification of small in the regulatory evaluation was 
done based on operation and size. The regulatory

[[Page 11666]]

flexibility analysis uses the SBA definition.
(iii) The Response of the Agency to Any Comments Filed by the Chief 
Counsel for Advocacy of the Small Business Administration in Response 
to the Proposed Rule, and a Detailed Statement of Any Change Made to 
the Proposed Rule in This Final Rule as a Result of the Comments
    The FAA did not receive comments to the SNPRM from the Small 
Business Administration.
(iv) A Description of an Estimate of the Number of Small Entities to 
Which the Rule Will Apply or an Explanation of Why No Such Estimate Is 
Available
    There are an estimated 191 part 139 certificated airports impacted 
by the rule. From the 191 airports, the FAA identified at least 32 
airports that meet the Small Business Administration (SBA) definition 
of small governmental jurisdictions such as governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts with populations of less than 50,000.\22\ The FAA considers 
this a substantial number of small entities. The 2015 revenue, for 
these airports, ranges from about $123 thousand to $41.0 million. Using 
the preceding information, the FAA estimates that their ratio of 
annualized costs to annual revenues is higher than 2 percent for 
several of the airports, as shown in Table 6 below.
---------------------------------------------------------------------------

    \22\ https://www.sba.gov/sites/default/files/advocacy/How-to-Comply-with-the-RFA-WEB.pdf.
    \23\ Data retrieved 10/4/2017 from https://data.census.gov/cedsci/table?tid=GOVSTIMESERIES.CG00ORG01.
    \24\ Revenue data from Compliance Activity Tracking System 
(CATS) accessed on 10/5/2017 from https://cats.airports.faa.gov/.
    \25\ Annualized using a capital recovery factor of 0.14238, over 
10 years, using a 7 percent rate of interest.

                                                  Table 6--Breakout of Airports Meeting SBA Definition
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             2015                                                   Total
   Number        Airport ident.        New part 139       Population        2015 NPIAS      2015 Revenue \24\    annualized            Ratio (%)
                                      classification     estimate \23\    classification                         costs \25\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1...........  ACK................  Class I............          10,858  Non Hub...........         $7,744,371         $85,175  1.10.
2...........  ACY................  Class I............          39,091  Small Hub.........         12,012,655          85,175  0.71.
3...........  BGM................  Class I............          46,058  Non Hub...........          3,185,093          85,175  2.67.
4...........  BGR................  Class I............          32,309  Non Hub...........         12,036,215          85,175  0.71.
5...........  BTV................  Class I............          42,477  Small Hub.........         16,639,848          85,175  0.51.
6...........  BZN................  Class I............          43,399  Small Hub.........          8,918,137          85,175  0.96.
7...........  CIU................  Class I............          13,787  Non Hub...........          1,031,955          85,175  8.25.
8...........  COE................  Class IV...........          49,131  GA................      not available          85,175  not available.
9...........  DRT................  Class I............          36,000  Non Hub...........      not available          85,175  not available.
10..........  ECP................  Class I............          37,495  None..............         10,320,416          85,175  0.83.
11..........  EGE................  Class I............           6,840  Non Hub...........          4,860,347          85,175  1.75.
12..........  ELM................  Class I............          28,291  Non Hub...........          3,002,954          85,175  2.84.
13..........  FAI................  Class I............          32,453  Small Hub.........          9,971,203          85,175  0.85.
14..........  FRG................  Class IV...........           8,685  Reliever..........      not available          85,175  not available.
15..........  GCN................  Class I............             585  Non Hub...........          1,359,481          85,175  6.27.
16..........  GSP................  Class I............          28,340  Small Hub.........          8,309,709          85,175  1.03.
17..........  IAG................  Class I............          48,888  Reliever..........          2,559,262          85,175  3.33.
18..........  INL................  Class I............           6,172  Non Hub...........            123,838          85,175  68.78.
19..........  JNU................  Class I............          32,603  Small Hub.........          6,224,563          85,175  1.37.
20..........  KTN................  Class I............           8,176  Non Hub...........      not available          85,175  not available.
21..........  MDT................  Class I............          49,070  Small Hub.........         26,150,106          85,175  0.33.
22..........  MLI................  Class I............          42,636  Small Hub.........         11,064,089          85,175  0.77.
23..........  MRY................  Class I............          28,394  Non Hub...........          8,468,100          85,175  1.01.
24..........  MYR................  Class I............          31,027  Small Hub.........         18,799,347          85,175  0.45.
25..........  PGD................  Class I............          18,155  Non Hub...........          7,048,500          85,175  1.21.
26..........  PRC................  Class I............          41,603  Comm Serv.........          1,448,110          85,175  5.88.
27..........  PSP................  Class I............          47,201  Small Hub.........         19,063,440          85,175  0.45.
28..........  SGJ................  Class I............          14,061  Non Hub...........          3,657,899          85,175  2.33.
29..........  TEB................  Class IV...........              69  Reliever..........         41,039,253          85,175  0.21.
30..........  TIX................  Class IV...........          45,278  GA................      not available          85,175  not available.
31..........  TRI................  Class I............          26,651  Non Hub...........          6,583,279          85,175  1.29.
32..........  VRB................  Class IV...........          16,343  GA................      not available          85,175  not available.
--------------------------------------------------------------------------------------------------------------------------------------------------------

(v) A description of the Projected Reporting, Recordkeeping and Other 
Compliance Requirements of the Rule, Including an Estimate of the 
Classes of Small Entities Which Will Be Subject to the Requirement and 
the Type of Professional Skills Necessary for Preparation of the Report 
or Record

[[Page 11667]]



                                             Table 7--Small Airport
                                              [Costs over 10 years]
----------------------------------------------------------------------------------------------------------------
                                                             Total cost per
            Small airport costs                Total hours       airport                 Description
----------------------------------------------------------------------------------------------------------------
Manual & Implementation Plan (One-time)....             N/A        $138,150  One-time cost of $138,150 per small
                                                                              airport.
Manual Revisions (Annually)................              72           1,990  Clerical Employee Wage x 12 hours x
                                                                              6 years.
Staffing...................................             N/A         774,918  129,159 staffing cost per airport x
                                                                              6 years.
Initial Software (One-time)................             N/A          26,074  Initial Software Cost of $26,074
                                                                              per airport.
Recurrent Software (Annually)..............             N/A          32,595  Recurring Software Cost of $6519
                                                                              per airport x 5 years.
Initial Training fee (One-time)............             N/A             810  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x $270 training fee per
                                                                              person.
Initial Training Time (One-time)...........               9             462  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x 3 hours for each.
Recurrent Training Fee (Biennial)..........              NA             540  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x $90 training fee per
                                                                              person x 2 years.
Recurrent Training Time (Biennial).........               9             462  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x 1.5 hours for each x 2
                                                                              years.
Hazard Awareness Orientation (One-time)....               8             692  SMS Manager x 8 hours.
Hazard Awareness Orientation (Biennial)....               4             346  SMS Manager x 2 hours to update
                                                                              awareness orientation x 2 Years.
Promotional Material (Biennial)............             N/A           7,020  2340 spent every other year on
                                                                              promotional material x 3 years.
Record Potential Hazards (Annually)........              65           1,797  Clerical Wage x 15 min x 52 hazards
                                                                              per year x 5 years.
Reporting Potential Hazards (Annually).....              65           4,668  Blended Wage x 15 min x 52 hazards
                                                                              per year x 5 years for small
                                                                              airports.
Update Distribution Log (Biennial).........             2.5              69  Clerical Wage x 5 min x 10 tenants
                                                                              per small airport x 3 years.
Update Training Records (Biennial).........             0.8              22  Clerical Wage x 5 min x 3 employee
                                                                              training records per airport x 3
                                                                              years.
Documenting Safety Risk Management                      130           5,188  Operations Specialist Wage x 30 min
 (Annually).                                                                  x 52 documents per year x 5 years.
Reporting Safety Information under Safety                10             631  Operations Research Wage x 1 hour x
 Assurance (Annually).                                                        2 reports per year x 5 years.
                                            --------------------------------
    Total..................................             375         996,434
----------------------------------------------------------------------------------------------------------------
Table notes:
Clerical Employee \26\ $27.64.
Operation Research Analyst \27\ $63.12.
General and Operations Manager \28\ $86.50.
Airfield Operations Specialist \29\ $39.31.
Blended Wage (Mechanic, Pilot, Flight Attendant, Airfield Ops Specialist) \30\ $71.82.

     
---------------------------------------------------------------------------

    \26\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 43-6014; May 2020. This wage includes compensation 
information from BLS.
    \27\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 15-2031; May 2020. This wage includes compensation 
information from BLS.
    \28\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 11-1021; May 2020. This wage includes compensation 
information from BLS.
    \29\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 53-2022; May 2020. This wage includes compensation 
information from BLS.
    \30\ Blended wage: Bureau of Labor Statistic (BLS); Annual Mean 
Wage, Occupation Code 53-2022; May 2020. This wage includes 
compensation information from BLS.

----------------------------------------------------------------------------------------------------------------
                                                             Total cost per
            Small airport costs                Total hours       airport                 Description
----------------------------------------------------------------------------------------------------------------
Manual & Implementation Plan (One-time)....             N/A        $138,150  One-time cost of $138,150 per small
                                                                              airport.
Manual Revisions (Annually)................              72           1,990  Clerical Employee Wage x 12 hours x
                                                                              6 years.
Staffing...................................             N/A         774,918  $129,159 staffing cost per airport
                                                                              x 6 years.
Initial Software (One-time)................             N/A          26,074  Initial Software Cost of $26,074
                                                                              per airport.
Recurrent Software (Annually)..............             N/A          32,595  Recurring Software Cost of $6,519
                                                                              per airport x 5 years.
Initial Training fee (One-time)............             N/A             810  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x $270 training fee per
                                                                              person.
Initial Training Time (One-time)...........               9             462  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x 3 hours for each.
Recurrent Training Fee (Biennial)..........              NA             540  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x $90 training fee per
                                                                              person x 2 years.
Recurrent Training Time (Biennial).........               9             462  1 Manager, 1 Maintenance Person, 1
                                                                              Clerical x 1.5 hours for each x 2
                                                                              years.
Hazard Awareness Orientation (One-time)....               8             692  SMS Manager x 8 hours.
Hazard Awareness Orientation (Biennial)....               4             346  SMS Manager x 2 hours to update
                                                                              awareness orientation x 2 Years.
Promotional Material (Biennial)............             N/A           7,020  $2,340 spent every other year on
                                                                              promotional material x 3 years.

[[Page 11668]]

 
Record Potential Hazards (Annually)........              65          $1,797  Clerical Wage x 15 min x 52 hazards
                                                                              per year x 5 years.
Reporting Potential Hazards (Annually).....              65           4,150  Blended Wage x 15 min x 52 hazards
                                                                              per year x 5 years for small
                                                                              airports.
Update Distribution Log (Biennial).........             2.5              69  Clerical Wage x 5 min x 10 tenants
                                                                              per small airport x 3 years.
Update Training Records (Biennial).........             0.8              22  Clerical Wage x 5 min x 3 employee
                                                                              training records per airport x 3
                                                                              years.
Documenting Safety Risk Management                      130           5,188  Operations Specialist Wage x 30 min
 (Annually).                                                                  x 52 documents per year x 5 years.
Reporting Safety Information under Safety                10             631  Operations Research Wage x 1 hour x
 Assurance (Annually).                                                        2 reports per year x 5 years.
                                            --------------------------------
    Total..................................             375         995,916
----------------------------------------------------------------------------------------------------------------
Table notes:
Clerical Employee \31\ $27.64.
Operation Research Analyst \32\ $63.12.
General and Operations Manager \33\ $86.50.
Airfield Operations Specialist \34\ $39.31.
Blended Wage (Mechanic, Pilot, Flight Attendant, Airfield Ops Specialist) \35\ $63.85.

(vi) A Description of the Steps the Agency Has Taken To Minimize the 
Significant Economic Impact on Small Entities Consistent With the 
Stated Objectives of Applicable Statutes, Including a Statement of the 
Factual, Policy, and Legal Reasons for Selecting the Alternative 
Adopted in This Final Rule and Why Each One of the Other Significant 
Alternatives to the Rule Considered by the Agency Which Affect the 
Impact on Small Entities Was Rejected
---------------------------------------------------------------------------

    \31\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 43-6014; May 2020. This wage includes compensation 
information from BLS.
    \32\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 15-2031; May 2020. This wage includes compensation 
information from BLS.
    \33\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 11-1021; May 2020. This wage includes compensation 
information from BLS.
    \34\ Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Code 53-2022; May 2020. This wage includes compensation 
information from BLS.
    \35\ Blended wage computed by taking the average of four 
occupation wages: Bureau of Labor Statistic (BLS); Annual Mean Wage, 
Occupation Codes 53-2022, 53-2011, 49-3011, 53-2031; May 2020. This 
wage includes compensation information from BLS.
---------------------------------------------------------------------------

    The FAA analyzed the following four alternatives in the SNPRM: (a) 
all part 139 airports; (b) airport operators holding a Class I AOC; (c) 
certificated international airports; (d) large, medium, and small hub 
airports and certificated airports with more than 100,000 total annual 
operations; and (e) large, medium, and small hub airports, certificated 
airports with more than 100,000 total annual operations (the sum of all 
arrivals and departures), and certificated international airports. The 
fourth alternative was identified as the preferred alternative in the 
SNPRM. This alternative reduced the qualified population of airports 
from all 531 part 139 airports to approximately 265 by eliminating a 
number of small airports. This alternative focused on airports with 
high passenger traffic and included facilities with the largest number 
of arrivals and departures so that safety benefits would flow to the 
overwhelming majority of aircraft operations.
    This final rule will continue to apply to large, medium, and small 
hub airports, certificated airports with 100,000 or more total annual 
operations using a three-year rolling average, and certificated 
airports that serve any international operation other than general 
aviation. However, after reviewing public comments to the SNPRM, the 
FAA modified the preferred alternative to allow airports identified 
under the international trigger with no international commercial 
traffic to obtain a waiver from this regulation. This change in this 
final rule reduces the number of airports from approximately 265 to 191 
qualified airports. The additional estimated 74 airports that the FAA 
projects will obtain waivers are also small airports.

C. International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing standards or engaging in related activities 
that create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety, and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards. The FAA has 
assessed the potential effect of this final rule and determined that it 
will have only a domestic impact and, therefore, will not create 
unnecessary obstacles to the foreign commerce of the United States.

D. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA uses an 
inflation-adjusted value of $158.0 million in lieu of $100 million. 
This final rule does not contain such a mandate; therefore, the 
requirements of Title II of the Act do not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. According to the 1995 
amendments to the Paperwork Reduction Act (5 CFR 1320.8(b)(2)(vi)), an 
agency may not collect or sponsor the collection of information, nor 
may it impose an information collection requirement unless it displays 
a valid Office of Management and Budget (OMB) control number.
    This final rule will impose the following amended information

[[Page 11669]]

collection requirements to the existing information collection 
requirements previously approved under OMB Control Number 2120-0675. As 
required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), 
the FAA submitted these information collection amendments for its 
review and OMB approved the amended information collection requirements 
under existing OMB Control Number 2120-0675.
    Summary: This final rule requires certain certificate holders to 
establish a SMS for the entire airfield environment (including movement 
and non-movement areas) to improve safety at airports hosting air 
carrier operations. A SMS is a formalized approach to managing safety 
by developing an organization-wide safety policy, developing formal 
methods for identifying hazards, analyzing and mitigating risk, 
developing methods for ensuring continuous safety improvement, and 
creating organization-wide safety promotion strategies.
    Under this final rule, applicable certificate holders are required 
to submit an Implementation Plan, SMS Manual and/or ACM update under a 
staggered implementation schedule. The intent of the Implementation 
Plan is for a certificate holder to identify its plan for implementing 
SMS within applicable areas, and map its schedule for implementing 
requirements. The certificate holder will describe its means for 
complying with this final rule by either developing a SMS Manual and 
updating its ACM with cross-references, or documenting the SMS 
requirements directly in the ACM.
    This final rule also requires applicable certificate holders to 
maintain records related to formalized hazard identification and 
analysis under Safety Risk Management, training records under Safety 
Promotion, and other Safety Promotion materials (also referred to as 
safety communications).
    Public comments: The FAA received a few comments in the 2016 and 
2021 comment periods that expressed concern that the initial SMS 
planning, data collection, software, documentation, and implementation 
process were underestimated. Another commenter stated that the 
regulatory evaluation did not account for the cost of attrition on 
training records.
    The FAA used information from pilot study participants before and 
after the initial regulatory evaluation to estimate costs and cannot 
validate the cost estimates provided above. Additionally, the FAA had 
no basis to account for attrition on the small number of employees that 
are estimated to require training under the rule. Attrition is a normal 
course of business cost. The FAA expects little to no attrition solely 
due to SMS.
    Use: While the Implementation Plan's main purpose is to guide a 
certificate holder's implementation, the plan also provides a basis for 
the FAA's oversight during the development and implementing phases. The 
FAA's review and approval of the Implementation Plan ensures that a 
certificate holder is given feedback early and before it may make 
significant capital improvements as part of its SMS development and 
implementation.
    The ACM update and/or the SMS Manual establishes the foundation for 
a SMS. Like the Implementation Plan, the FAA will approve the ACM 
update (a current practice under the existing rule). However, the FAA 
will accept the certificate holder's SMS Manual.
    Collection and analysis of safety data is an essential part of a 
SMS. Types of data to be collected, retention procedures, analysis 
processes, and organizational structures for review and evaluation will 
be documented in either the ACM or SMS Manual, with cross-references in 
the ACM. These records will be used by a certificate holder in the 
operation of its SMS and to facilitate continuous improvement through 
evaluation and monitoring. While this final rule does not require a 
certificate holder to submit these records to the FAA, it is required 
to make these records available upon request.
    Respondents (including number of): The FAA estimates that 191 part 
139 certificated airports will be impacted by the paperwork 
requirements in this rule.

                                          Table 8--Affected Population
----------------------------------------------------------------------------------------------------------------
                                                   Number of
              Airport* categories                  airports                        Data source
----------------------------------------------------------------------------------------------------------------
Large, Medium, and Small Hub..................             132  2015 annual passenger boarding (enplanements)
                                                                 and all-cargo data from Air Carrier Activity
                                                                 Information System (ACAIS) available on
                                                                 FAA.gov.
>100,000 Operations...........................              27  Rolling average of 2013 to 2015 FAA Form 5010-1,
                                                                 Airport Master Record for non-towered airports
                                                                 and Operations Network (OPSNET) data for
                                                                 towered airports.
International Traffic.........................              32  All available CBP data sources including CBP
                                                                 regulations, public website information, and
                                                                 the private flyers list of available airports
                                                                 to determine international applicability
                                                                 (excludes airports with no commercial
                                                                 international traffic).
----------------------------------------------------------------------------------------------------------------

    Frequency and Annual Burden Estimate: The FAA used the information 
below to estimate the paperwork burden for the approximately 132 large 
and 59 small part 139 certificated airports impacted by the rule.

                             Table 9--Wages
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Clerical Employee...........................................      $27.64
Operation Research Analyst..................................       63.12
Management Occupations......................................       86.50
Airfield Operations Specialist..............................       39.91
Blended Wage (Mechanic, Pilot, Flight Attendant, Airfield          63.85
 Operations Specialist......................................
------------------------------------------------------------------------


[[Page 11670]]


                                       Table 10--Impact on Small Airports
                                                 [Over 10 years]
----------------------------------------------------------------------------------------------------------------
                                                   Hours per
            Paperwork requirements                  airport      Small airport             Description
----------------------------------------------------------------------------------------------------------------
Manual & Implementation Plan (One-time).......              NA        $138,150  One-time cost of $138,150 per
                                                                                 small airport.
Manual Revisions (Annually)...................              72           1,990  Clerical Employee Wage x 12
                                                                                 hours x 6 years for small
                                                                                 airports.
Initial Software (One-time)...................              NA          26,074  Initial Software Cost of $26,074
                                                                                 per airport.
Recurrent Software (Annually).................              NA          32,595  Recurring Software Cost of
                                                                                 $6,519 per airport x 5 years
                                                                                 for small airports.
Promotional Material (Biennially).............              NA           7,020  $2,340 spent every other year on
                                                                                 promotional material x 3 years.
Record Potential Hazards (Annually)...........              65           1,797  Clerical Wage x 15 min x 52
                                                                                 hazards per year x 5 years for
                                                                                 small airports.
Reporting Potential Hazards (Annually)........              65           4,150  Blended Wage x 15 min x 52
                                                                                 hazards per year x 5 years for
                                                                                 small airports.
Update Distribution Log (Biennially)..........             2.5              69  Clerical Wage x 5 min x 10
                                                                                 tenants per small airport x 3
                                                                                 years.
Update Training Records (Biennially)..........             0.8              22  Clerical Wage x 5 min x 3
                                                                                 employee training records per
                                                                                 airport x 3 years.
Documenting Safety Risk Management (Annually).             130           5,188  Operations Specialist Wage x 30
                                                                                 min x 52 documents per year x 5
                                                                                 years for small airports.
Reporting Safety Information under Safety                   10             631  Operations Research Wage x 1
 Assurance (Annually).                                                           hour x 2 reports per year x 5
                                                                                 years for small airports.
                                               --------------------------------
    Total.....................................           345.3         217,686
----------------------------------------------------------------------------------------------------------------


                                       Table 11--Impact on Large Airports
                                                 [Over 10 years]
----------------------------------------------------------------------------------------------------------------
                                                   Hours per
            Paperwork requirements                  airport      Large airport             Description
----------------------------------------------------------------------------------------------------------------
Manual & Implementation Plan (One-time).......              NA        $250,460  One-time cost of $250,460 per
                                                                                 large airport.
Manual Revisions (Annually)...................              84           2,322  Clerical Employee Wage x 12
                                                                                 hours x 7 years for large
                                                                                 airports.
Initial Software (One-time)...................              NA          26,074  Initial Software Cost of $26,074
                                                                                 per airport.
Recurrent Software (Annually).................              NA          39,114  Recurring Software Cost of
                                                                                 $6,519 per airport x 6 years
                                                                                 for large airports.
Promotional Material (Biennially).............              NA           7,020  $2,340 spent every other year on
                                                                                 promotional material x 3 years.
Record Potential Hazards (Annually)...........              78           2,156  Clerical Wage x 15 min x 52
                                                                                 hazards per year x 6 years for
                                                                                 large airports.
Reporting Potential Hazards (Annually)........              78           4,980  Blended Wage x 15 min x 52
                                                                                 hazards per year x 6 years for
                                                                                 large airports.
Update Distribution Log (Biennially)..........            37.5           1,037  Clerical Wage x 15 min x 50
                                                                                 tenants per large airport x 3
                                                                                 years.
Update Training Records (Biennially)..........             3.3              91  Clerical Wage x 5 min x 10
                                                                                 employee training records per
                                                                                 airport x 4 years.
Documenting Safety Risk Management (Annually).             156           6,226  Operations Specialist Wage x 30
                                                                                 min x 52 documents per year x 6
                                                                                 years for large airports.
Reporting Safety Information under Safety                   12             757  Operations Research Wage x 1
 Assurance (Annually).                                                           hour x 2 reports per year x 6
                                                                                 years for large airports.
                                               --------------------------------
    Total.....................................           448.8         340,237
----------------------------------------------------------------------------------------------------------------

    The hourly burden, over 10 years, for small airports is 345.3 hours 
multiplied by 59 airports for a total of 20,373 hours. Annually, this 
is equivalent to 2,037 hours per year. For the 132 large airports, the 
hourly burden is 59,242 over 10 years or 5,924 hours per year.
    While Tables 8 and 9 identify the cost per airport, there are a few 
airports that will not purchase software. For small airports, there are 
44 airports with a per airport cost of $217,686 and 15 airports with a 
per airport cost of $191,612 (excluding the $26,074 initial software 
cost). For large airports, there are 99 airports with an estimated per 
airport cost of $340,237. The remaining 33 airports have a per airport 
cost of $314,163 (excluding the $26,074 initial software cost). The 
total cost burden combined over a 10-year period, for small and large 
airports, sums to $556.4 million ($51 million at 7 percent present 
value).

F. International Compatibility and Cooperation

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
reviewed the corresponding ICAO Standards and Recommended Practices and 
has identified no differences with these proposed regulations.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion identified in

[[Page 11671]]

paragraph 5-6.6 and involves no extraordinary circumstances.

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. Most airports subject to 
this final rule are owned, operated, or regulated by a local government 
body (such as a city or council government), which, in turn, is 
incorporated by or as part of a State. The FAA determined that this 
action will not have a substantial direct effect on the States, or the 
relationship between the Federal Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, and, therefore, does not have Federalism implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use

    The FAA analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). The FAA has determined that it is 
not a ``significant energy action'' under the executive order and it is 
not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

C. Executive Order 13609, Promoting International Regulatory 
Cooperation

    Executive Order 13609, Promoting International Regulatory 
Cooperation, promotes international regulatory cooperation to meet 
shared challenges involving health, safety, labor, security, 
environmental, and other issues and reduce, eliminate, or prevent 
unnecessary differences in regulatory requirements. The FAA has 
analyzed this action under the policy and agency responsibilities of 
Executive Order 13609, Promoting International Regulatory Cooperation. 
The FAA has determined that this action would eliminate differences 
between U.S. aviation standards and those of other civil aviation 
authorities by requiring certain certificated airports to have a SMS.

VI. How To Obtain Additional Information

A. Rulemaking Documents

    An electronic copy of a rulemaking document may be obtained by 
using the internet--
    1. Search the Federal eRulemaking Portal (www.regulations.gov);
    2. Visit the FAA's Regulations and Policies web page at 
www.faa.gov/regulations_policies/; or
    3. Access the Government Printing Office's web page at 
www.GovInfo.gov.
    Copies may also be obtained by sending a request (identified by 
notice, amendment, or docket number of this rulemaking) to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW, Washington, DC 20591, or by calling (202) 267-9680.

B. Comments Submitted to the Docket

    Comments received may be viewed by going to www.regulations.gov and 
following the online instructions to search the docket number for this 
action. Anyone is able to search the electronic form of all comments 
received into any of the FAA's dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.).

C. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA to comply with small entities' requests for 
information or advice about compliance with statutes and regulations 
within its jurisdiction. A small entity with questions regarding this 
document may contact its local FAA official or the person listed under 
the FOR FURTHER INFORMATION CONTACT heading at the beginning of the 
preamble. To find out more about SBREFA on the internet, visit https://www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects in 14 CFR Part 139

    Air carriers, Airports, Aviation safety, Reporting and 
recordkeeping requirements, Safety Management Systems (SMS).

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends chapter I of title 14, Code of Federal 
Regulations as follows:

PART 139--CERTIFICATION OF AIRPORTS

0
1. The authority citation for part 139 is revised to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701-44706, 44709, 
44719, 47175.


0
2. Amend Sec.  139.5 by adding in alphabetical order definitions for 
``Accountable executive'', ``Airport Safety Management System (SMS)'', 
``Hazard'', ``Non-movement area'', ``Risk'', ``Risk analysis'', ``Risk 
mitigation'', ``Safety assurance'', ``Safety policy'', ``Safety 
promotion'', and ``Safety risk management'' to read as follows:


Sec.  139.5  Definitions.

* * * * *
    Accountable executive means an individual designated by the 
certificate holder to act on its behalf for the implementation and 
maintenance of the Airport Safety Management System. The accountable 
executive has control of the certificate holder's human and financial 
resources for operations conducted under an Airport Operating 
Certificate. The accountable executive has ultimate responsibility to 
the FAA, on behalf of the certificate holder, for the safety 
performance of operations conducted under the certificate holder's 
Airport Operating Certificate.
* * * * *
    Airport Safety Management System (SMS) means an integrated 
collection of processes and procedures that ensures a formalized and 
proactive approach to system safety through risk management.
* * * * *
    Hazard means a condition that could foreseeably cause or contribute 
to: (1) injury, illness, death, damage to or loss of system, equipment, 
or property, or (2) an aircraft accident as defined in 49 CFR 830.2.
* * * * *
    Non-movement area means the area, other than that described as the 
movement area, used for the loading, unloading, parking, and movement 
of aircraft on the airside of the airport (including ramps, apron 
areas, and on-airport fuel farms).
* * * * *
    Risk means the composite of predicted severity and likelihood of 
the potential effect of a hazard.
    Risk analysis means the process whereby a hazard is characterized 
for its likelihood and the severity of its effect or harm. Risk 
analysis can be either a quantitative or qualitative analysis; however, 
the inability to quantify or the lack of historical data on a 
particular hazard does not preclude the need for analysis.
    Risk mitigation means any action taken to reduce the risk of a 
hazard's effect.
* * * * *
    Safety assurance means processes within the SMS that function 
systematically to ensure the performance and effectiveness of risk 
controls or mitigations and that the organization meets or exceeds its 
safety

[[Page 11672]]

objectives through the collection, analysis, and assessment of 
information.
    Safety policy means the certificate holder's documented commitment 
to safety, which defines its safety objectives and the accountabilities 
and responsibilities of its employees in regard to safety.
    Safety promotion means a combination of training and communication 
of safety information to support the implementation and operation of a 
SMS in an organization.
    Safety risk management means a process within the SMS composed of 
describing the system, identifying the hazards, and analyzing, 
assessing, and controlling or mitigating the risk.
* * * * *


Sec.  139.101  [Amended]

0
3. Amend Sec.  139.101 by removing paragraph (c).

0
4. Amend Sec.  139.103 by revising paragraph (b) to read as follows:


Sec.  139.103  Application for certificate.

* * * * *
    (b) Submit with the application, two copies of an Airport 
Certification Manual, and a Safety Management System Manual (where 
applicable), prepared in accordance with subparts C and E of this part.

0
5. Amend Sec.  139.203, in the table in paragraph (b) titled ``Required 
Airport Certification Manual Elements,'' by redesignating entry 29 as 
entry 30 and adding a new entry 29.
    The addition reads as follows:


Sec.  139.203  Contents of Airport Certification Manual.

* * * * *
    (b) * * *

                                 Required Airport Certification Manual Elements
----------------------------------------------------------------------------------------------------------------
                                                                   Airport certificate class
               Manual elements               -------------------------------------------------------------------
                                                  Class I          Class II        Class III         Class IV
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
29. Policies and procedures for the                        X                X                X                X
 development of, implementation of,
 maintenance of, and adherence to, the
 Airport's Safety Management System, as
 required under subpart E of this part.
 Section 139.401(1) prescribes which
 certificate holders are subject to this
 requirement................................
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------


0
6. Amend Sec.  139.301 by revising paragraph (b)(1) and adding 
paragraphs (b)(9) and (10) to read as follows:


Sec.  139.301  Records.

* * * * *
    (b) * * *
    (1) Personnel training. Twenty-four consecutive calendar months for 
personnel training records and orientation materials, as required under 
Sec. Sec.  139.303, 139.327, and 139.402(d).
* * * * *
    (9) Safety risk management documentation. The longer of thirty-six 
consecutive calendar months after the risk analysis of identified 
hazards under Sec.  139.402(b)(2) has been completed, or twelve 
consecutive calendar months after mitigations required under Sec.  
139.402(b)(2)(v) have been completed.
    (10) Safety communications. Twelve consecutive calendar months for 
safety communications, as required under Sec.  139.402(d).
* * * * *

0
7. Amend Sec.  139.303 by revising paragraphs (e)(5) and (6) and adding 
paragraph (e)(7) to read as follows:


Sec.  139.303  Personnel.

* * * * *
    (e) * * *
    (5) Sec.  139.337, Wildlife hazard management;
    (6) Sec.  139.339, Airport condition reporting; and
    (7) Sec.  139.402, Components of airport safety management system.
* * * * *

0
8. Add subpart E to read as follows:
Subpart E--Airport Safety Management System
Sec.
139.401 General requirements.
139.402 Components of Airport Safety Management System.
139.403 Airport Safety Management System implementation.

Subpart E--Airport Safety Management System


Sec.  139.401  General requirements.

    (a) Each certificate holder or applicant for an Airport Operating 
Certificate meeting at least one of the following criteria must 
develop, implement, maintain, and adhere to an Airport Safety 
Management System pursuant to the requirements established in this 
subpart. If the certificate holder:
    (1) Is classified as a large, medium, or small hub based on 
passenger data extracted from the Air Carrier Activity Information 
System;
    (2) Has an average of 100,000 or more total annual operations, 
meaning the sum of all arrivals and departures, over the previous three 
calendar years; or
    (3) Is classified as a port of entry, designated international 
airport, landing rights airport, or user fee airport.
    (b) The scope of an Airport Safety Management System must encompass 
aircraft operation in the movement area, aircraft operation in the non-
movement area, and other airport operations addressed in this part.
    (c) The Airport Safety Management System should correspond in size, 
nature, and complexity to the operations, activities, hazards, and 
risks associated with the certificate holder's operations.
    (d) If a certificate holder qualifies exclusively under paragraph 
(a)(3) of this section and has no tenants that are required to comply 
with SMS requirements of any jurisdiction, the certificate holder is 
eligible for a waiver from the requirements of paragraph (a) of this 
section.
    (1) To obtain the waiver, the certificate holder must submit a 
written request to the Regional Airports Division Manager justifying 
its request.
    (2) If FAA grants a certificate holder's request for a waiver, the 
certificate holder must validate its waiver eligibility to the Regional 
Airports Division Manager every two years.
    (e) If an airport has a tenant required to maintain a SMS subject 
to the requirements of part 5 of this title, then the certificate 
holder may develop a data sharing and reporting plan to address the 
reporting and sharing of hazard and safety data with the tenant.
    (1) Any data sharing and reporting plan must include, at a minimum:

[[Page 11673]]

    (i) The types of information the certificate holder expects the 
tenant to share;
    (ii) The timeliness of sharing relevant safety data and reports;
    (iii) Processes for analyzing joint safety issues or hazards;
    (iv) Other processes, procedures, and policies to aid the 
certificate holder's compliance with its obligations under the Airport 
Safety Management System; and
    (v) Identification of the mechanisms through which the certificate 
holder will ensure compliance with the plan to achieve the full 
implementation of the requirements.
    (2) With a data sharing and reporting plan, the requirement for the 
certificate holder to provide safety awareness orientation to the 
tenants or their employees under Sec.  139.402(d)(1) is waived.
    (3) The certificate holder remains the ultimate responsible party 
for compliance with its Airport Safety Management System.
    (f) Each certificate holder required to develop, implement, 
maintain, and adhere to an Airport Safety Management System under this 
subpart must describe its compliance with the requirements identified 
in Sec.  139.402, either:
    (1) Within a separate section of the certificate holder's Airport 
Certification Manual titled Airport Safety Management System; or
    (2) Within a separate Airport Safety Management System Manual. If 
the certificate holder chooses to use a separate Airport Safety 
Management System Manual, the Airport Certification Manual must 
incorporate by reference the Airport Safety Management System Manual.
    (g) On an annual basis or upon FAA request, the certificate holder 
shall provide the FAA copies of any changes to the Airport Safety 
Management System Manual.
    (h) A certificate holder that starts implementation of an Airport 
Safety Management System but no longer qualifies under paragraph (a) of 
this section must continue to develop, implement, maintain, and adhere 
to its Airport Safety Management System for the longest of the 
following periods:
    (1) Twenty-four consecutive calendar months after full 
implementation; or
    (2) Twenty-four consecutive calendar months from the date it no 
longer qualifies under paragraph (a) of this section.


Sec.  139.402  Components of Airport Safety Management System.

    An Airport Safety Management System must include:
    (a) Safety Policy. A Safety Policy that, at a minimum:
    (1) Identifies the accountable executive;
    (2) Establishes and maintains a safety policy statement signed by 
the accountable executive;
    (3) Ensures the safety policy statement is available to all 
employees and tenants;
    (4) Identifies and communicates the safety organizational 
structure;
    (5) Describes management responsibility and accountability for 
safety issues;
    (6) Establishes and maintains safety objectives; and
    (7) Defines methods, processes, and organizational structure 
necessary to meet safety objectives.
    (b) Safety Risk Management. Safety Risk Management processes and 
procedures for identifying hazards and their associated risks within 
airport operations and for changes to those operations covered by this 
part that, at a minimum:
    (1) Establish a system for identifying operational safety issues.
    (2) Establish a systematic process to analyze hazards and their 
associated risks, which include:
    (i) Describing the system;
    (ii) Identifying hazards;
    (iii) Analyzing the risk of identified hazards and/or analyzing 
proposed mitigations;
    (iv) Assessing the level of risk associated with identified 
hazards; and
    (v) Mitigating the risks of identified hazards, when appropriate.
    (3) Establish and maintain records that document the certificate 
holder's Safety Risk Management processes.
    (i) The records shall provide a means for airport management's 
acceptance of responsibility for assessed risks and mitigations.
    (ii) Records associated with the certificate holder's Safety Risk 
Management processes must be retained for the longer of:
    (A) Thirty-six consecutive calendar months after the risk analysis 
of identified hazards under paragraph (b)(2) of this section has been 
completed; or
    (B) Twelve consecutive calendar months after mitigations required 
under paragraph (b)(2)(v) of this section have been completed.
    (c) Safety assurance. Safety assurance processes and procedures to 
ensure mitigations developed through the certificate holder's Safety 
Risk Management processes and procedures are adequate, and the 
Airport's Safety Management System is functioning effectively. Those 
processes and procedures must, at a minimum:
    (1) Provide a means for monitoring safety performance including a 
means for ensuring that safety objectives identified under paragraph 
(a)(6) of this section are being met.
    (2) Establish and maintain a safety reporting system that provides 
a means for reporter confidentiality.
    (3) Report pertinent safety information and data on a regular basis 
to the accountable executive. Reportable data includes:
    (i) Compliance with the requirements under this subpart and subpart 
D of this part;
    (ii) Performance of safety objectives established under paragraph 
(a)(6) of this section;
    (iii) Safety critical information distributed in accordance with 
paragraph (d)(5)(ii) of this section;
    (iv) Status of ongoing mitigations required under the Airport's 
Safety Risk Management processes as described under paragraph (b)(2)(v) 
of this section; and
    (v) Status of a certificate holder's schedule for implementing the 
Airport Safety Management System as described under Sec.  139.403.
    (d) Safety Promotion. Safety Promotion processes and procedures to 
foster an airport operating environment that encourages safety. Those 
processes and procedures must, at a minimum:
    (1) Provide all persons authorized to access the airport areas 
regulated under this part with a safety awareness orientation, which 
includes hazard identification and reporting. The safety awareness 
orientation materials must be readily available and must be reviewed 
and updated every twenty-four calendar months or sooner if necessary.
    (2) Maintain a record of all safety awareness orientation materials 
made available under paragraph (d)(1) of this section including any 
revisions and means of distribution. Such records must be retained for 
twenty-four consecutive calendar months after the materials are made 
available.
    (3) Provide safety training on those requirements of SMS and its 
implementation to each employee with responsibilities under the 
certificate holder's SMS that is appropriate to the individual's role. 
This training must be completed at least every twenty-four months.
    (4) Maintain a record of all training by each individual under 
paragraph (d)(3) of this section that includes, at a minimum, a 
description and date of training received. Such records must be 
retained for twenty-four consecutive calendar months after completion 
of training.

[[Page 11674]]

    (5) Develop and maintain formal means for communicating important 
safety information that, at a minimum:
    (i) Ensures all persons authorized to access the airport areas 
regulated under this part are aware of the SMS and their safety roles 
and responsibilities;
    (ii) Conveys critical safety information;
    (iii) Provides feedback to individuals using the airport's safety 
reporting system required under paragraph (c)(2) of this section; and
    (iv) Disseminates safety lessons learned to relevant airport 
employees or other stakeholders.
    (6) Maintain records of communications required under this section 
for 12 consecutive calendar months.


Sec.  139.403  Airport Safety Management System implementation.

    (a) Each certificate holder required to develop, implement, 
maintain, and adhere to an Airport Safety Management System under this 
subpart must submit an Implementation Plan to the FAA for approval 
according to the following schedule:
    (1) For certificate holders identified under Sec.  139.401(a)(1), 
on or before April 24, 2024;
    (2) For certificate holders identified under Sec.  139.401(a)(2), 
on or before October 24, 2024;
    (3) For certificate holders identified under Sec.  139.401(a)(3), 
on or before April 24, 2025.
    (4) For a certificate holder that qualifies under Sec.  139.401(a) 
after April 24, 2023, on or before 18 months after the certificate 
holder receives notification from the Regional Airports Division 
Manager of the change in its status.
    (b) An Implementation Plan must provide:
    (1) A detailed proposal on how the certificate holder will meet the 
requirements prescribed in this subpart.
    (2) A schedule for implementing SMS components and elements 
prescribed in Sec.  139.402. The schedule must include timelines for 
the following requirements:
    (i) Developing the safety policy statement as prescribed in Sec.  
139.402(a)(2) and when it will be made available to all employees and 
tenants as prescribed in Sec.  139.402(a)(3);
    (ii) Identifying and communicating the safety organizational 
structure as prescribed in Sec.  139.402(a)(4);
    (iii) Establishing a system for identifying operational safety 
issues as prescribed in Sec.  139.402(b)(1);
    (iv) Establishing a safety reporting system as prescribed in Sec.  
139.402(c)(2);
    (v) Developing, providing, and maintaining safety awareness 
orientation materials as prescribed in Sec.  139.402(d)(1);
    (vi) Providing SMS-specific training to employees with 
responsibilities under the certificate holder's SMS as prescribed in 
Sec.  139.402(d)(3); and
    (vii) Developing, implementing, and maintaining formal means for 
communicating important safety information as prescribed in Sec.  
139.402(d)(5).
    (3) A description of any existing programs, policies, or procedures 
that the certificate holder intends to use to meet the requirements of 
this subpart.
    (c) Each certificate holder required to develop, implement, 
maintain, and adhere to an Airport Safety Management System under this 
subpart must submit its amended Airport Certification Manual and 
Airport Safety Management System Manual, if applicable, to the FAA in 
accordance with its Implementation Plan but not later than 12 months 
after receiving FAA approval of the certificate holder's Implementation 
Plan.
    (d) A certificate holder that qualifies under Sec.  139.401(a) must 
fully implement its Airport Safety Management System no later than 36 
months after the approval of its Implementation Plan.

    Issued in Washington, DC, under authority provided by 49 U.S.C. 
106(f), 44701, 44702, and 44706 on or about February 15, 2023.
Billy Nolen,
Acting Administrator.
[FR Doc. 2023-03597 Filed 2-22-23; 8:45 am]
BILLING CODE 4910-13-P


