To amend title 49, United States Code, to extend authorizations for the airport improvement program, to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, and for other purposes.

Summary: Federal Aviation Administration Extension Act of 2008, Part II - Amends the Internal Revenue Code to extend from September 30, 2008, through March 31, 2009: (1) excise taxes on aviation fuels and air transportation of persons and property; and (2) the expenditure authority for the Airport and Airway Trust Fund.

Extends funding from September 30, 2008, through March 31, 2009, for airport improvement program (AIP) projects, including project grant authority. Authorizes obligation at any time during FY2009 of funds made available by this Act. Prescribes a formula for calculating funding apportionments to implement the program.

Extends through March 31, 2009, various airport development projects, including: (1) the pilot program for passenger facility fees at nonhub airports; (2) the small community air service development program; (3) small airport grants for airports located in the Marshall Islands, Micronesia, and Palau; (4) state and local airport compatibility projects; (5) the authority of the Metropolitan Washington Airports Authority to apply for an airport development grant and impose a passenger facility fee; (6) the temporary increase to 95% in the government share of certain AIP project costs; (7) Midway Island airport development; and (8) airport planning and development grant programs.

Extends through March 31, 2009, Department of Transportation (DOT) insurance coverage for domestic and foreign-flag air carriers.

Extends through May 31, 2009, air carrier liability limits for injuries to passengers resulting from acts of terrorism.

Extends through March 31, 2009, the authorization of appropriations for: (1) Federal Aviation Administration (FAA) operations; (2) air navigation facilities and equipment; and (3) research, engineering, and development.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Federal Aviation Administration 
Extension Act of 2008, Part II''.
SEC. 2. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST FUND.
    (a) Fuel Taxes.--Subparagraph (B) of section 4081(d)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``September 30, 
2008'' and inserting ``March 31, 2009''.
    (b) Ticket Taxes.--
        (1) Persons.--Clause (ii) of section 4261(j)(1)(A) of the 
    Internal Revenue Code of 1986 is amended by striking ``September 
    30, 2008'' and inserting ``March 31, 2009''.
        (2) Property.--Clause (ii) of section 4271(d)(1)(A) of such 
    Code is amended by striking ``September 30, 2008'' and inserting 
    ``March 31, 2009''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008.
SEC. 3. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
AUTHORITY.
    (a) In General.--Paragraph (1) of section 9502(d) of the Internal 
Revenue Code of 1986 is amended--
        (1) by striking ``October 1, 2008'' and inserting ``April 1, 
    2009'', and
        (2) by inserting ``or the Federal Aviation Administration 
    Extension Act of 2008, Part II'' before the semicolon at the end of 
    subparagraph (A).
    (b) Conforming Amendment.--Paragraph (2) of section 9502(e) of such 
Code is amended by striking the date specified in such paragraph and 
inserting ``April 1, 2009''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008.
SEC. 4. EXTENSION OF AIRPORT IMPROVEMENT PROGRAM.
    (a) Authorization of Appropriations.--
        (1) In general.--Section 48103 of title 49, United States Code, 
    is amended--
            (A) by striking ``and'' at the end of paragraph (4);
            (B) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (C) by inserting after paragraph (5) the following:
        ``(6) $1,950,000,000 for the 6-month period beginning on 
    October 1, 2008.''.
        (2) Obligation of amounts.--Sums made available pursuant to the 
    amendment made by paragraph (1) may be obligated at any time 
    through September 30, 2009, and shall remain available until 
    expended.
        (3) Program implementation.--For purposes of calculating 
    funding apportionments and meeting other requirements under 
    sections 47114, 47115, 47116, and 47117 of title 49, United States 
    Code, for the 6-month period beginning on October 1, 2008, the 
    Administrator of the Federal Aviation Administration shall--
            (A) first calculate funding apportionments on an annualized 
        basis as if the total amount available under section 48103 of 
        such title for fiscal year 2009 were $3,900,000,000; and
            (B) then reduce by 50 percent--
                (i) all funding apportionments calculated under 
            subparagraph (A); and
                (ii) amounts available pursuant to sections 47117(b) 
            and 47117(f)(2) of such title.
    (b) Project Grant Authority.--Section 47104(c) of such title is 
amended by striking ``September 30, 2008,'' and inserting ``March 31, 
2009,''.
SEC. 5. EXTENSION OF EXPIRING AUTHORITIES.
    (a) Section 40117(l)(7) of title 49, United States Code, is amended 
by striking ``September 30, 2008.'' and inserting ``April 1, 2009.''.
    (b) Section 41743(e)(2) of such title is amended by striking 
``2008'' and inserting ``2009''.
    (c) Section 44302(f)(1) of such title is amended--
        (1) by striking ``November 30, 2008,'' and inserting ``March 
    31, 2009,''; and
        (2) by striking ``December 31, 2008,'' and inserting ``May 31, 
    2009,''.
    (d) Section 44303(b) of such title is amended by striking ``March 
31, 2009,'' and inserting ``May 31, 2009,''.
    (e) Section 47107(s)(3) of such title is amended by striking 
``October 1, 2008.'' and inserting ``April 1, 2009.''.
    (f) Section 47115(j) of such title is amended by inserting ``and 
for the portion of fiscal year 2009 ending before April 1, 2009,'' 
after ``2008,''.
    (g) Section 47141(f) of such title is amended by striking 
``September 30, 2008.'' and inserting ``March 31, 2009.''.
    (h) Section 49108 of such title is amended by striking ``October 1, 
2008,'' and inserting ``March 31, 2009,''.
    (i) Section 161 of the Vision 100--Century of Aviation 
Reauthorization Act (49 U.S.C. 47109 note) is amended by striking 
``fiscal year 2008,'' and inserting ``fiscal year 2009 before April 1, 
2009,''.
    (j) Section 186(d) of such Act (117 Stat. 2518) is amended by 
inserting ``and for the portion of fiscal year 2009 ending before April 
1, 2009,'' after ``2008,''.
    (k) Section 409(d) of such Act (49 U.S.C. 41731 note) is amended by 
striking ``September 30, 2008.'' and inserting ``September 30, 2009.''.
    (l) The amendments made by this section shall take effect on 
October 1, 2008.
SEC. 6. FEDERAL AVIATION ADMINISTRATION OPERATIONS.
    Section 106(k)(1) of title 49, United States Code, is amended--
        (1) by striking ``and'' at the end of subparagraph (C);
        (2) by striking the period at the end of subparagraph (D) and 
    inserting ``; and''; and
        (3) by inserting after subparagraph (D) the following:
            ``(E) $4,516,364,500 for the 6-month period beginning on 
        October 1, 2008.''.
SEC. 7. AIR NAVIGATION FACILITIES AND EQUIPMENT.
    Section 48101(a) of title 49, United States Code, is amended--
        (1) by striking ``and'' at the end of paragraph (3);
        (2) by striking the period at the end of paragraph (4) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(5) $1,360,188,750 for the 6-month period beginning on 
    October 1, 2008.''.
SEC. 8. RESEARCH, ENGINEERING, AND DEVELOPMENT.
    Section 48102(a) of title 49, United States Code, is amended--
        (1) by striking ``and'' at the end of paragraph (11)(K);
        (2) by striking the period at the end of paragraph (12)(L) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(13) $85,507,500 for the 6-month period beginning on October 
    1, 2008.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.