Electronic Signatures - Part THREE of FOUR - Let’s Clarify Advisory Circular AC 120-78

When I started this series, I expected to be able to cover all of the elements of electronic signatures in just three issues. As I proceed and dig deeper into the topic, I find it necessary to expand to four issues in order to cover the details well enough to be helpful in understanding how electronic signatures will impact our industry.

We began the series about electronic signatures by talking through the aircraft maintenance cycle and identifying the points within the cycle where a signature is needed to meet regulatory requirements. We also talked through who specifically those signatures most serve, the maintenance provider or the aircraft itself.

Last issue, we ascertained that there is much confusion around the terms “electronic signature” and “digital signature,” and that for the purposes of the aviation maintenance industry, only “digital signatures” as they are commonly defined are practical due to the absolute requirement that all signatures be authenticated and validated in order to be acceptable.

NOTE: As we continue through the discussion, we will continue to use the term electronic signature, knowing that in all aviation cases it must be synonymous with digital signature due to the fact that we must have authentication and validation with each signature in order to meet current regulatory requirements.

In this issue, I want to provide some clarification on topics covered by the Advisory Circular AC 120-78. Let’s dive into the AC and get clear on what it means for us all.

The title of the advisory circular is “AC 120-78 Acceptance and use of Electronic Signatures, Electronic Record-Keeping Systems and Electronic Manuals.” The title indicates that the intention of the AC is to provide guidance for not just electronic signatures, but also for electronic record-keeping systems and electronic manuals. What we will discuss here is just how misleading that title might be.

The over-arching premise of the AC, from a high-level perspective, is to require anyone who is using electronic signatures, electronics record-keeping systems OR electronic manuals to obtain from the FAA authority to do so in the form of a letter of authorization (LOA). Some might interpret the AC to require three separate LOAs: one for electronic signatures, one for electronic record keeping and one for electronic manuals. I, for one, disagree with that interpretation.

As with anything, I think it is key to start with “purpose.” Let’s look closely at the purpose of AC 120-78 as written within the AC itself. I have highlighted the words “electronic signature” in the purpose below, excerpted from the AC itself. Please read it closely and I believe you will agree. The primary purpose of this AC is to provide for electronic signature.

AC 120-78 Section 4

4. Why is the FAA providing guidelines for electronic signatures, electronic record-keeping systems and electronic manuals?

a. The Government Paperwork Elimination Act (GPEA), Public Law 105-277, Title XVII, and the Electronic Signaturesin Global and National Commerce Act (E-Sign), Public Law 106 229, encourage use of electronic signatures.When electronic signaturesare used and accepted, electronic record-keeping and document transfer will also be encouraged, meeting the goals of the Small Business Paperwork Relief Act of 2002. This AC represents the FAA’s effort to implement these laws to meet certain FAA operational and maintenance requirements.

b. Before the enactment of ESign on June 30, 2000, the regulations on signaturesacknowledging satisfaction of maintenance and operational requirements did not reflect current advances in information storage and retrieval technology. These earlier rules were developed when use of electronic media for the storage and retrieval of data was neither available to, nor contemplated by, the aviation industry or the FAA.

c. As the complexity of aircraft design, operations and maintenance processes increased, the number of records and documents generated and required to be retained by aircraft owners, operators, manufacturers and repair facilities expanded dramatically. Electronic information storage and retrieval systems have enhanced significantly the aviation industry’s ability not only to meet FAA record-retention requirements, but also to manufacture, operate and maintain today’s highly-complex aircraft and aircraft systems in a demanding operational environment.

d. The Office of Management and Budget (OMB), Executive Office of the President, has issued OMB Circular A-130, Management of Federal Information Resources. This document directs the FAA and other government agencies to recognize the limitations on electronic record-keeping systems due to restrictions on the use of electronic signatures. With this AC, the FAA recognizes this limitation and will now permit the use of electronic signatures on certain maintenance and operational records. Owners, operators and maintenance personnel may now use complete electronic record-keeping systems because the requirement to authenticate documents with non-electronic signatureshas been eliminated. Such systems may now be used to generate aircraft records (e.g., load manifests, dispatch releases, maintenance task cards, aircraft maintenance records, flight releases, airworthiness releases and flight test reports) that can be properly authenticated with an electronic signature.

e. Acceptance of electronic signatures will encourage the use of electronic maintenance record retention and record entry requirements for maintenance, preventive maintenance, inspection, rebuilding and alteration records.

f. Using electronic signaturesand various computer systems will also enhance communication with local Flight Standards District Offices (FSDO) or Certificate-Holding District Office (CHDO). Their use will provide for the online transmission of manual revisions and other routine written correspondence between operators and the FAA.

g. Using electronic signatureswill make it easier to identify a document signer (signatory). Their use will help eliminate the traceability difficulties associated with illegible handwritten entries and the deterioration of paper documents.

Reading through the purpose of AC 120-78, section 4, it is obvious that the intent was to introduce the capability to make and store records that have been authenticated with an electronic/digital signature and that the person making the signature is validated through a “system” that provides this discipline.

Now, let’s look at how electronic record keeping and electronic manuals fit in — or don’t fit in, depending how you look at it.

Electronic Record-Keeping Systems

With the AC’s purpose in mind, as written, it creates a lot of confusion. The fact is that in reading the AC’s definitions of the electronic record-keeping systems and electronic manuals, many helpful systems that are already in place and are completely imbedded in our industry’s infrastructure fit into those definitions, thus creating confusion. Do we need an LOA to use the systems we already have in place and have been using for years? For example, the definition of electronic record-keeping system in the current revision of the AC reads as follows:

f. Electronic Record-keeping System. A system of record processing in which records are entered, stored and retrieved electronically by a computer system rather than in the traditional hard copy form.

Gulfstream CMP (by then-Grumman Aerospace) was the industry’s first electronic record-keeping system. It was referred to as a computerized maintenance program and was followed shortly after by CAMP systems’ computerized aircraft maintenance programs. Later came CESCOM, Avtrak, Flightdocs, Skybooks and many others. Most of these systems have been in use for nearly 50 years. We certainly don’t need an LOA, as implied by this AC, in order to have authority to use those systems and others like them. Those systems as they are today simply supplement the actual aircraft records by providing an over-arching organizational mechanism. This mechanism provides guidance to finding the actual records, those records that meet the regulatory requirements, which includes when, where, how and by whom (required by FAR 43.9 and 43.11). Perhaps most importantly for this discussion is “by whom,” which today requires a signature and certificate number. Historically, that signature has been handwritten.

Many of the electronic record-keeping systems mentioned earlier also include the creation of task cards and other permanent records, all of which for now require a handwritten signature (until such time as the signing person or agency has obtained an LOA in accordance with the AC) to meet the requirements of FAR 43. This AC, I believe, was intended, if implemented properly, to provide guidance for the use of electronic signature within those systems, not for the use of an electronic record-keeping system.

Electronic Manuals

g. Electronic Manuals. Consists of operational and/or maintenance manuals that are stored and retrieved by a computer system via CD ROM, Internet based, or in other various other forms of electronic media. Electronic manuals may consist of approved data, accepted data or reference data used in aircraft maintenance or operations.

Similarly, our industry has been using electronic manuals for more than 20 years. Most manufacturers at this point provide their maintenance and operations manuals in an electronic format. This a great benefit to our industry in that we are much quicker to receive critical revisions and corrections to those manuals. A challenge we have had is the many different formats they come to us in because each OEM has its own proprietary format for the manuals.

The authority for us to use these manuals doesn’t originate from AC 120-78. It comes from each OEM itself. As an OEM, they are required as a type certificate holder to provide these manuals in order to receive and maintain that type certificate (this also applies to STC holders and ICAs).

In addition, certificated air agencies such as air carriers and repair stations are required to create and utilize various manuals. We have used electronic versions of those manuals as well for years, with authority to do so coming from the operations specifications issued by the FAA or by reference in the accepted or approved manuals themselves. Again, the intent of this AC was not to add additional requirements for those manuals by requiring us to obtain an LOA to use them.

After reading the purpose of the AC as contained in the AC itself, it’s obvious the intent was to provide for the use of electronic signatures within manuals created by air carriers and repair stations, should those agencies choose to use such technology, and that incorporating those electronic signatures might improve communications between industry and the FAA.

So ... the purpose of AC 120-78 is clearly to provide guidance on the incorporation of electronic signatures and that use of electronic signatures will support the use of more elaborate and “complete” electronic record-keeping systems and electronic manuals moving forward. To recap the purpose specifically,

… When electronic signaturesare used and accepted, electronic record keeping and document transfer will also be encouraged …

… OMB Circular A-130 ... directs the FAA and other government agencies to recognize the limitations on electronic record-keeping systems due to restrictions on the use of electronic signatures... the FAA recognizes this limitation and will now permit the use of electronic signatures on certain maintenance and operational records. Owners, operators and maintenance personnel may now use complete electronic record-keeping systems because the requirement to authenticate documents with non-electronic signatureshas been eliminated.

… electronic signatureswill encourage the use of electronic maintenance record retention and record entry requirements ...

… will also enhance communication with local Flight Standards District Offices (FSDO) or Certificate-Holding District Office (CHDO) ... will provide for the online transmission of manual revisions ... between operators and the FAA.

Using electronic signatureswill make it easier to identify a document signer (signatory).

I hope that this is helpful in preparing you for conversations with the FAA in the future. It is not necessary to obtain an LOA for the use of OEM manuals or the use of electronic record-keeping systems that do not include electronic signatures. Understand when you are talking with the FAA that they have not received any guidance other than the AC itself. It is critical that you facilitate discussion to gain a common understanding.

The FAA is currently working with industry to revise the AC and to create parallel guidance in the form of orders for FAA personnel. Preliminary discussions indicate that they fully understand the confusion and are expected to create a more accurate and easy-to-understand AC as a revision.

In the next issue, I will tie a bow around this series by looking back at when and where we require signatures in the course of aircraft maintenance. We will also look at ways that the use of electronic signatures might help or create more problems. Thanks for reading.

Joe Hertzler has more than 25 years of experience in business aviation. He has earned a reputation as an efficiency expert when it comes to aircraft maintenance and is well known for his in-depth understanding of maintenance regulations and how they affect aircraft compliance. He has helped many in dealing with critical and urgent FAA interactions and often speaks on the topic of aircraft maintenance and compliance at industry events, such as the NBAA Maintenance Managers Conference, PAMA meetings and IA renewal seminars. Hertzler also serves on the National Air Transportation Association’s (NATA) Maintenance and Systems Technology committee. Contact him at JoeHertzler@gmail.com.