This bill aims to modernize the Federal Aviation Administration's (FAA) type certification process to foster innovation and support the development of new and novel aviation technologies. It mandates the FAA to publish a plan within 180 days to improve the issue paper process, maximize the use of industry consensus standards, and create stable policy for commonly addressed subjects. The goal is to enhance transparency and ensure global leadership in aviation by considering performance-based standards in certification requirements.

Furthermore, the legislation requires the FAA to establish standard expected timelines for major milestones in the type certification process, including the development of issue papers, special conditions, and responses to applicant petitions. These timelines will be incorporated into FAA orders, with an annual report to Congress detailing performance against these metrics and addressing any deficiencies. The Administrator must also consult with various stakeholders, including advanced air mobility stakeholders, trade associations, infrastructure providers, and certified bargaining representatives, when implementing these changes.

The bill also directs the FAA to amend its orders to include specific criteria for when an issue paper is warranted, account for performance-based rule projects, and improve efficiency by converting stable issue papers into published policy or advisory circulars. Finally, it requires the FAA to publish updated delegation guidance for type certification, outlining criteria for applicant eligibility, classifying compliance findings, and considering how delegation impacts safety, predictability, and U.S. global leadership in new aviation technologies.