SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cybersecurity Standards for Aircraft 
to Improve Resilience Act of 2016'' or the ``Cyber AIR Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Covered air carrier.--The term ``covered air carrier'' 
        means an air carrier or a foreign air carrier (as those terms 
        are defined in section 40102 of title 49, United States Code).
            (2) Covered manufacturer.--The term ``covered 
        manufacturer'' means an entity that--
                    (A) manufactures or otherwise produces aircraft and 
                holds a production certificate under section 44704(c) 
                of title 49, United States Code; or
                    (B) manufactures or otherwise produces electronic 
                control, communications, maintenance, or ground support 
                systems for aircraft.
            (3) Cyberattack.--The term ``cyberattack'' means the 
        unauthorized access to aircraft electronic control or 
        communications systems or maintenance or ground support systems 
        for aircraft, either wirelessly or through a wired connection.
            (4) Critical software systems.--The term ``critical 
        software systems'' means software systems that can affect 
        control over the operation of an aircraft.
            (5) Entry point.--The term ``entry point'' means the means 
        by which signals to control a system on board an aircraft or a 
        maintenance or ground support system for aircraft may be sent 
        or received.

SEC. 3. DISCLOSURE OF CYBERATTACKS BY THE AVIATION INDUSTRY.

    (a) In General.--Not later than 270 days after the date of the 
enactment of this Act, the Secretary of Transportation shall prescribe 
regulations requiring covered air carriers and covered manufacturers to 
disclose to the Federal Aviation Administration any attempted or 
successful cyberattack on any system on board an aircraft, whether or 
not the system is critical to the safe and secure operation of the 
aircraft, or any maintenance or ground support system for aircraft, 
operated by the air carrier or produced by the manufacturer, as the 
case may be.
    (b) Use of Disclosures by the Federal Aviation Administration.--The 
Administrator of the Federal Aviation Administration shall use the 
information obtained through disclosures made under subsection (a) to 
improve the regulations required by section 4 and to notify air 
carriers, aircraft manufacturers, and other Federal agencies of 
cybersecurity vulnerabilities in systems on board an aircraft or 
maintenance or ground support systems for aircraft.

SEC. 4. INCORPORATION OF CYBERSECURITY INTO REQUIREMENTS FOR AIR 
              CARRIER OPERATING CERTIFICATES AND PRODUCTION 
              CERTIFICATES.

    (a) Regulations.--Not later than 270 days after the date of the 
enactment of this Act, the Secretary of Transportation, in consultation 
with the Secretary of Defense, the Secretary of Homeland Security, the 
Attorney General, the Federal Communications Commission, and the 
Director of National Intelligence, shall prescribe regulations to 
incorporate requirements relating to cybersecurity into the 
requirements for obtaining an air carrier operating certificate or a 
production certificate under chapter 447 of title 49, United States 
Code.
    (b) Requirements.--In prescribing the regulations required by 
subsection (a), the Secretary shall--
            (1) require all entry points to the electronic systems of 
        each aircraft operating in United States airspace and 
        maintenance or ground support systems for such aircraft to be 
        equipped with reasonable measures to protect against 
        cyberattacks, including the use of isolation measures to 
        separate critical software systems from noncritical software 
        systems;
            (2) require the periodic evaluation of the measures 
        described in paragraph (1) for security vulnerabilities using 
        best security practices, including the appropriate application 
        of techniques such as penetration testing, in consultation with 
        the Secretary of Defense, the Secretary of Homeland Security, 
        the Attorney General, the Federal Communications Commission, 
        and the Director of National Intelligence; and
            (3) require the measures described in paragraph (1) to be 
        periodically updated based on the results of the evaluations 
        conducted under paragraph (2).

SEC. 5. ANNUAL REPORT ON CYBERATTACKS ON AIRCRAFT SYSTEMS AND 
              MAINTENANCE AND GROUND SUPPORT SYSTEMS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the Administrator of 
the Federal Aviation Administration shall submit to the appropriate 
committees of Congress a report on attempted and successful 
cyberattacks on any system on board an aircraft, whether or not the 
system is critical to the safe and secure operation of the aircraft, 
and on maintenance or ground support systems for aircraft, that 
includes--
            (1) the number of such cyberattacks during the year 
        preceding the submission of the report;
            (2) with respect to each such cyberattack--
                    (A) an identification of the system that was 
                targeted;
                    (B) a description of the effect on the safety of 
                the aircraft as a result of the cyberattack; and
                    (C) a description of the measures taken to counter 
                or mitigate the cyberattack;
            (3) recommendations for preventing a future cyberattack;
            (4) an analysis of potential vulnerabilities to 
        cyberattacks in systems on board an aircraft and in maintenance 
        or ground support systems for aircraft; and
            (5) recommendations for improving the regulatory oversight 
        of aircraft cybersecurity.
    (b) Form of Report.--The report required by subsection (a) shall be 
submitted in unclassified form, but may include a classified annex.

SEC. 6. MANAGING CYBERSECURITY RISKS OF CONSUMER COMMUNICATIONS 
              EQUIPMENT.

    (a) In General.--The Commercial Aviation Communications Safety and 
Security Leadership Group established by the memorandum of 
understanding between the Department of Transportation and the Federal 
Communications Commission entitled ``Framework for DOT-FCC Coordination 
of Commercial Aviation Communications Safety and Security Issues'' and 
dated January 29, 2016 (in this section known as the ``Leadership 
Group''), shall be responsible for evaluating the cybersecurity 
vulnerabilities of broadband wireless communications equipment designed 
for consumer use on board aircraft operated by covered air carriers 
that is installed before, on, or after, or is proposed to be installed 
on or after, the date of the enactment of this Act.
    (b) Responsibilities.--To address cybersecurity risks arising from 
malicious use of communications technologies on board aircraft operated 
by covered air carriers, the Leadership Group shall--
            (1) ensure the development of effective methods for 
        preventing foreseeable cyberattacks that exploit broadband 
        wireless communications equipment designed for consumer use on 
        board such aircraft; and
            (2) require the implementation by covered air carriers, 
        covered manufacturers, and communications service providers of 
        all technical and operational security measures that are deemed 
        necessary and sufficient by the Leadership Group to prevent 
        cyberattacks described in paragraph (1).
    (c) Report Required.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, and annually thereafter, the 
        Leadership Group shall submit to the Committee on Commerce, 
        Science, and Transportation of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives a report on--
                    (A) the technical and operational security measures 
                developed to prevent foreseeable cyberattacks that 
                exploit broadband wireless communications equipment 
                designed for consumer use on board aircraft operated by 
                covered air carriers; and
                    (B) the steps taken by covered air carriers, 
                covered manufacturers, and communications service 
                providers to implement the measures described in 
                subparagraph (A).
            (2) Form of report.--The report required by paragraph (1) 
        shall be submitted in unclassified form, but may include a 
        classified annex.
Cybersecurity Standards for Aircraft to Improve Resilience Act of 2016 or the Cyber AIR Act This bill directs the Department of Transportation (DOT) to require domestic or foreign air carriers and manufacturers of aircraft or electronic control, communications, maintenance, or ground support systems for aircraft to disclose to the Federal Aviation Administration (FAA) any attempted or successful cyberattack against any system on board an aircraft or against any maintenance or ground support system for aircraft. The FAA shall use the information obtained through such disclosures to: (1) improve the regulations (to be prescribed by DOT) to incorporate requirements relating to cybersecurity into the requirements for obtaining an air carrier operating certificate or a production certificate; and (2) notify air carriers, aircraft manufacturers, and other federal agencies of cybersecurity vulnerabilities in systems on board an aircraft or maintenance or ground support systems for aircraft.  In prescribing such regulations, DOT must require: (1) all entry points to the electronic systems of each aircraft operating in U.S. airspace and maintenance or ground support systems for such aircraft to be equipped with reasonable measures to protect against cyberattacks; and (2) the periodic evaluation of, and updates to, such measures for security vulnerabilities using best security practices. The FAA must report to Congress annually on attempted and successful cyberattacks against any system on board an aircraft and against maintenance or ground support systems for aircraft. The Commercial Aviation Communications Safety and Security Leadership Group shall: (1) be responsible for evaluating the cybersecurity vulnerabilities of certain broadband wireless communications equipment designed for consumer use on board aircraft; and (2) require the implementation by air carriers, manufacturers, and communications service providers of technical and operational security measures it deems necessary to prevent cyberattacks that exploit such equipment.
Cyber AIR Act